Delchamps Plaza (Kroger Shadow Center) 1829 US 45 Columbus, MS Table of Contents Executive Summary • Legal Disclaimer 2 • Contacts • Offering Summary • Highlights • Location Overview • Aerial • Site Plan • Property Fundamentals Financials • Rent Roll 12 • Net Operating Income Tenant Fundamentals • Tenant Overview 16 • Lease Schedule • Tenant Mix Breakdown Market Overview 19 • Market Overview • Demographics Contacts 23 • Contact Information 1| Delchamps Plaza Legal Conditions THIS IS A CONFIDENTIAL MEMORANDUM intended solely for the THE SELLER EXPRESSELY RESERVES THE RIGHT AT ITS SOLE DISCRETION limited use in considering whether to pursue negotiations to acquire TO REJECT ANY OR ALL PROPOSALS OR EXPRESSIONS OF INTEREST IN Delchamps Plaza (the “Property”) located Columbus, MS and is not THE PROPERTY AND TO TERMINATE DISCUSSIONS WITH ANY PARTY AT intended to be an offer for the sale of the Property. ANYTIME WITH OR WITHOUT NOTICE. This confidential memorandum, which contains brief, selected If the Recipient does not wish to pursue negotiations leading to this information pertaining to the business and affairs of the Property, has acquisition, or if in the future the Recipient discontinues such been prepared by The Palomar Group. This confidential memorandum negotiations, Recipient agrees to return this confidential memorandum does not purport to be all-inclusive or to contain all the information to The Palomar Group. which a prospective purchaser may desire. Neither Seller nor The Palomar Group nor any of their officers, employees or agents make any THIS CONFIDENTIAL MEMORANDUM SHALL NOT BE DEEMED A representation of warranty, expressed or implied, as to the accuracy or REPRESENTATION OF THE STATE OF AFFAIRS OF THE PROPERTY OR completeness of this confidential memorandum or any of its contents CONSTITUTE AN INDICATION THAT THERE HAS BEEN NO CHANGE IN and no legal liability is assumed or shall be implied with respect THE BUSINESS OR AFFAIRS OF THE PROPERTY SINCE THE DATE OF thereto. PREPARATION OF THIS MEMORANDUM. By receipt of this confidential memorandum, it is agreed that the THE PALOMAR GROUP (BROKER) MAKES THE DISCLOSURE THAT ITS memorandum and its contents are confidential, that they will be held ROLE IS EXCLUSIVELY REPRESENTING THE SELLER, NOT THE BUYER AND and treated it in the strictest of confidence, that the Recipient will not, AS SUCH, BROKERS MUST WORK TO OBTAIN FOR SELLER THE BEST directly or in directly, disclose or permit anyone else to disclose this PRICE AND TERMS AVAILABLE. NEITHER SELLING BROKER OR SELLER memorandum or its contents to any other person, firm or entity ARE RESPONSIBLE FOR ANY COMPENSATION TO ANY OTHER PARTY IN without prior written authorization of the Seller, and that the Recipient CONNECTION WITH THE SALE OF THE PROPERTY. will not use or permit to be used this memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. THIS PROPERTY IS BEING SOLD AS AN “AS IS,WHERE IS”SALE. Photocopying or other duplication is strictly prohibited. 2| Delchamps Plaza MS Broker of Record Colin Edwards, Sullivan Wickley Properties MS Lic #22302 Team Ryan McArdle David Rivers Steve Collins Partner Partner Partner 706.631.8897 706.840.0055 706.564.8556 [email protected] [email protected] [email protected] Jefferson Knox Lee Malchow Associate Associate 706.294.8806 706.231.7249 [email protected] [email protected] The Palomar Group is a full-service commercial Investment Sales firm. The Investment Sales Team specializes in well positioned anchored or unanchored retail properties throughout the country. Their proven track record on both the acquisition and disposition sides are a direct result of their understanding of the marketplace, appropriate asset valuation based off current market conditions, and the alignment of assets to the most suitable and qualified Buyer/ Seller. The Team has worked on over 7 million square feet of retail, office and multifamily, having a hand in over $700 million in transactions across 12 states. 3| Delchamps Plaza % NOI Asking Price Cap Rate Square Footage Year Built $145,485 $1,763,000 8.25% 18,870 SF 1988 Major Tenants Upside Occupancy Debt Price PSF Pizza Hut, Sally Ability to grow 100% Free & Clear $93.42 Beauty, and Kidz-N- future rents Play 4| Delchamps Plaza THE OPPORTUNITY Address STRONG NEIGHBORHOOD CENTER 1829 US 45 • Connected to corporately owned Kroger in the Golden Triangle Columbus, MS • Limited term and below market rents allows opportunity to push rents as terms expire • Significant increase in the number of national tenants in the surrounding area Parcel Number • Ability to grow future rents as the average rent at Delchamps is $10.49 psf and the average 57W130400400 small shop rent across the market for comparable centers is $11.30 psf. Gross Leasable Area 18,870 square feet Land Area 2.7 acres Year Built 1988 Acquisition Price Point $1,763,000 Leasing 100% Occupancy Upside PROPERTY FUNADMENTAL Limited term on below market rents allows opportunity to • Ability to grow future rents through renovations of the center including facades, parking $ push rents as term expire. lot, and lighting Ability to grow future rents through renovations of the • New roof – installed in 2012 and still under warranty center including facades, parking lot and lighting • Parking lot striped/repaved/seal coated in 2013 Summary of National Tenants Size Expiration Renewal Option 1,500 3/31/2022 Two 3 Year LOCATION • Next door to the only Walmart within 20 miles 1,200 7/31/2020 None • Columbus Air Force Base located just north of this site provides a steady population base for the market with 1,500 military, 412 DoD Civilian employees, and 1,000 contractors 1,770 12/31/2022 One 3 Year • High traffic volume at over 27,000 VPD • Located at a signalized traffic light providing ease of ingress and egress 5| Delchamps Plaza Location Description: Delchamps Plaza is ideally located along a major retail corridor in Columbus, MS, immediately surrounded by dense neighborhoods and key national tenants. The center consists of one building totaling 18,870 square feet that is attached to a Kroger. The shopping center is made up of 10 bays, the smallest being 1,200 square feet, and the largest is 6,000 square feet. There is great signage and visibility at Delchamps Plaza where over 26,000 vehicles pass by daily on Highway 45. The center benefits from five direct points of entry into the property, four of which are full access on Highway 45. The center boasts an impressive roster of diversified tenants creating a dynamic center for retailers, customers, and the surrounding residents. 6| Delchamps Plaza 27,537 19,286 Delchamps Plaza 27,414 27,532 7| Delchamps Plaza Delchamps Plaza 27,537 8| Delchamps Plaza 27,537 Delchamps Plaza 9 SUITE TENANT SQ. FT. 1801 Pizza Hut 1,500 SF 01 03 05 07 09 11 1803 Cell Phone Repair 1,200 SF 13 Geeks 15 17 1805 Crown Wireless 1,200 SF 21 REPUBLICFINANCE 1807 Kidz-N-Play 6,000 SF 1809 Weight Watchers 1,200 SF 1811 Lucky Nails 1,200 SF Lincoln Rd Lincoln 1813 Statewide Federal 1,200 SF Credit Union 1815 Southern Flour 1,200 SF Bakery 1817 Wines, Etc 2,400 SF 1821 Sally Beauty 1,770 SF Supply TOTAL 18,870 SF 10| Delchamps Plaza Property Fundamentals Trade Area Delchamps Plaza is ideally located along a major retail corridor in Columbus, MS, immediately surrounded by dense neighborhoods and key national tenants. The center consists of one building totaling 18,870 square feet that is attached to a Kroger building. The shopping center is made up of 10 bays, the smallest being 1,200 square feet, and the largest 6,000 square feet. In addition to shadowing Kroger, the Highway 45 retail corridor boasts a large concentration of national retailers and restaurants are located along the corridor. Access The center benefits from five direct points of entry into the property, four of which are full access on Highway 45. Parking 112 Total parking spaces 5.93 spaces per 1,000 sf Traffic Counts Located on Highway 45 with over 27,000 vehicles per day. Roof Installed August 2012 – 15 year Warranty 11| Delchamps Plaza Financials 12| Delchamps Plaza Delchamps Plaza Rent roll Lease Term Rental Rates Options/Escalations Occupancy Expiration Monthly Annual Annual Tenant Unit # S.F. % s.f. Date Date $ PSF Rent Rent Rent Start $ PSF Rent Opt/Esc Pizza Hut 1801 1,500 7.95% 4/1/1992 3/31/2022 $ 10.13 $ 1,266 $ 15,196 4/1/2022 $ 10.74 $ 16,107 Opt 4/1/2025 $ 11.38 $ 17,074 Opt Cell Phone Repair Geeks 1803 1,200 6.36% 1/1/2015 12/31/2019 $ 12.00 $ 1,200 $ 14,400 1/1/2020 $ 12.00 $ 14,400 Opt Crown Wireless 1805 1,200 6.36% 2/1/2016 1/31/2021 $ 12.00 $ 1,200 $ 14,400 2/1/2021 $ 12.60 $ 15,120 Opt 2/1/2026 $ 13.23 $ 15,876 Opt Kidz-N-Play 1807 6,000 31.80% 4/1/2019 3/31/2022 $ 7.00 $ 3,500 $ 42,000 Weight Watchers 1809 1,200 6.36% 8/1/2004 7/31/2020 $ 12.38 $ 1,238 $ 14,856 Lucky Nails 1811 1,200 6.36% 9/1/2013 8/31/2023 $ 12.00 $ 1,200 $ 14,400 Statewide Federal Credit Union 1813 1,200 6.36% 3/1/2019 2/28/2022 $ 12.50 $ 1,250 $ 15,000 Southern Flour Bakery 1815 1,200 6.36% 6/1/2017 5/31/2021 $ 12.25 $ 1,225 $ 14,700 Wines, Etc 1817 2,400 12.72% 11/1/2011 10/31/2021 $ 13.25 $ 2,650 $ 31,800 11/1/2019 $ 13.25 $ 31,800 Esc 11/1/2020 $ 13.50 $ 32,400 Sally Beauty Supply 1821 1,770 9.38% 11/1/1988 10/31/2022 $ 12.00 $ 1,770 $ 21,240 11/1/2022 $ 13.00 $ 23,010 Opt TOTAL 18,870 100.00% $ 10.49 $ 16,499 $ 197,992 13| Delchamps Plaza BASE RENT 18,870 100.00% $10.49 $16,499 $197,992 CAM REIMBURSEMENT $3,339 TAX REIMBURSEMENT $5,983 INS REIMBURSEMENT $1,716 OTHER REIMBURSEMENT $500 TOTAL REIMBURSEMENT INCOME $11,538 Vacancy Factor 10% ($20,953) EFFECTIVE GROSS INCOME $188,577 Expense Summary $ p.s.f.