STARBUCKS & MOE’S SOUTHWEST GRILL MOBILE, ALABAMA & Moe’s Southwest Grill | Mobile, AL | 1 STARBUCKS & MOE’S | 390 SCHILLINGER ROAD SOUTH TABLE OF CONTENTS

TABLE OF CONTENTS • INVESTMENT SUMMARY

• INVESTMENT HIGHLIGHTS

• TENANT OVERVIEW

• MAPS

• DEMOGRAPHICS

Andrew Chason, CCIM First Vice President Investments National Retail Group www.marcusmillichap.com TEL (251) 929-7254 [email protected] License: AL: 000079317 Starbucks & Moe’s Southwest Grill | Mobile, AL | 2 STARBUCKS & MOE’S | 390 SCHILLINGER ROAD SOUTH INVESTMENT SUMMARY

Marcus & Millichap, as exclusive agent to the Seller, is pleased to present the opportunity to purchase the fee title to an attractive 4,245 square foot all brick strip center located at 390 Schillinger Road South in Mobile, Alabama. The center, which was constructed in 2004, is fully leased to Starbucks and Moes Southwest which are both original tenants of the property. The site is located on the southwest quadrant of Airport Boulevard and Schillinger Road; which is one of the busiest intersections in the county. Traffic counts exceed 68,000 cars per day. The site is .76 acres and has access and signage on both highways. The area is anchored by Lowes, Walmart, Home Depot, Target, Kohls, Hobby Lobby, Rouses and the Mobile Regional Airport. Starbucks and Moe’s Southwest are operating under NNN leases where each tenant reimburses for their pro rata share of property taxes, property insurance and common area maintenance. In addition, both tenants reimburse for management/admin fees. Each tenant is responsible for maintaining and replacing their HVAC units and both tenants are required to reimburse the Landlord for repaving the parking lot. The Landlord is responsible for the roof and structure of the building, however there is a transferable roof warranty in place.

OVERVIEW PROJECTED FINANCIAL SUMMARY PURCHASE PRICE $2,255,000 PROJECTED GROSS INCOME CURRENT CAP RATE 6.85% Schedule Base Rental Income $154,457 Expense Reimbursement Income $37,012 NET OPERATING INCOME $154,457 Gross Potential Rental Income $191,469 BUILDINGG SIZE ±4,245 SF ANNUAL EXPENSES LOT SIZE ± ±0.75 ACRES Real Estate Taxes - $2.44 PSF $10,379 PARKING 33 SPACES Insurance - $1.51 PSF $6,410 OCCUPANCY 100% Common Area Maintenance - $3.24 PSF $13,741 YEAR BUILT 2004 Management Fee $6,482 Total Operating Expenses $37,012 ADDRESS 390 SCHILLINGER ROAD SOUTH MOBILE, AL 36695 NET OPERATING INCOME $154,457 RENT SCHEDULE LEASE TENANT GLA % OF GLA ANNUAL RENT RENT/SF LEASE START OPTIONS CHANGES ON CHANGES TO EXPIRATION

2nd Extension Option $80,242.38 3rd Extension Option $88,266.62 Starbucks ±1,775 SF 41.81% $72,947.62 $41.10 10/04/2004 02/28/2025 Four, Five-Year 4th Extension Option $97,093.28 5th Extension Option $106,802.61

Moe’s Southwest Grill ±2,470 SF 58.19% $81,510.00 $33.00 10/14/2004 10/31/2024 None - -

TOTALS 4,245 SF 100% $154,457.62

Starbucks & Moe’s Southwest Grill | Mobile, AL | 3 STARBUCKS & MOE’S | 390 SCHILLINGER ROAD SOUTH SITE PHOTO

Starbucks & Moe’s Southwest Grill | Mobile, AL | 4 STARBUCKS & MOE’S | 390 SCHILLINGER ROAD SOUTH SITE PHOTO

Starbucks & Moe’s Southwest Grill | Mobile, AL | 5 STARBUCKS & MOE’S | 390 SCHILLINGER ROAD SOUTH SITE PHOTO

Starbucks & Moe’s Southwest Grill | Mobile, AL | 6 STARBUCKS & MOE’S | 390 SCHILLINGER ROAD SOUTH SITE PLAN

Starbucks & Moe’s Southwest Grill | Mobile, AL | 7 STARBUCKS & MOE’S | 390 SCHILLINGER ROAD SOUTH LOCAL AERIAL

Starbucks & Moe’s Southwest Grill | Mobile, AL | 8 STARBUCKS & MOE’S | 390 SCHILLINGER ROAD SOUTH PARCEL MAP

Starbucks & Moe’s Southwest Grill | Mobile, AL | 9 STARBUCKS & MOE’S | 390 SCHILLINGER ROAD SOUTH TENANT OVERVIEW

The first Starbucks opened in 1971 as a single store in Seattle’s historic Pike Place Market. The name, inspired by Moby Dick, envoked the seafaring tradition of the early coffee traders. Starbucks offered some of the world’s finest fresh-roasted whole bean coffees, from a narrow storefront. From the beginning, Starbucks set out to be a different kind of company. One that not only celebrated coffee and the rich tradition, but that also brought a feeling of connection. In 1987, acquired Starbucks assets and changed its name to Starbucks Corporation; at this time there were 17 locations. Now, Starbucks operates as a roaster, marketer and retailer and is known to be the preeminent coffee company worldwide. The company operates over 23,000 locations in more than 65 countries and is the fourth largest coffee producer in the world and benefits from its strong brand loyalty. Its stores offer coffee and beverages, packaged roasted whole-bean and ground coffees, single-serve ready-to- coffee and tea products, juices, bottled water, various food products, such as pastries, breakfast and lunch items. The company offers its products under the Starbucks, Teavana, , Seattle’s Best Coffee, , La Boulange, Ethos, Starbucks VIA, Starbucks Doubleshot, Starbucks Refreshers, and Starbucks Iced Cafè Favorites brand names. Starbucks currently has a net worth in excess of $5.8 billion, TTM revenue of $21.6 billion and TTM net income of $2.8 billion as of January 1, 2017. https://www.starbucks.com

Serving a wide variety of fresh, made-to-order Southwest fare, Moe’s Southwest Grill, opened their first location in Atlanta, Georgia in 2000. The name Moe’s is actually an acronym standing for Musicians, Outlaws and Entertainers, which lends to the music related artwork that can be found in each restaurant . In 2010, Moe’s signed its first overseas development agreement to open 40 restaurants in Turkey, prior to this the restaurant could only be found in the Americas. Nearly 20 years after the original location opened, Moe’s is serving Southwest fare at more than 700 locations in both the U.S. and abroad. Beyond their restaurant walls, fan favorites, can be found in Walmart, Kroger and BJs Warehouses across the United States. Eddie Webster is the franchisee at this location and has operated this unit since 2004. Eddie currently operates four units in the Mobile, AL and Pensacola, FL markets. Store sales are strong and well above the average unit volume for Moe’s Southwest. Moe’s Schillinger, LLC is the tenant at this location with personal guarantees from Eddie and others.

https://www.moes.com

Starbucks & Moe’s Southwest Grill | Mobile, AL | 10 STARBUCKS & MOE’S | 390 SCHILLINGER ROAD SOUTH LOCATION OVERVIEW MOBILE OVERVIEW METRO HIGHLIGHTS Mobile County is on the Alabama coast, partially bordered by Mobile Bay and the Gulf of Mexico. Known for its many PORT ACTIVITY live oak-lined streets, the metro is a Gulf Coast cultural center that boasts a concentration of historical architecture, The Port of Mobile is one of the largest deep-water ports in the nation, focusing on neighborhoods and museums. Additionally, the metro hosts forest products. In 2018, 26.8 million tons of cargo moved through the port. Alabama’s only deep-water port and a growing manufacturing AFFORDABILITY & HOMEOWNERSHIP industry. It is the third largest metro in the state with 418,000 Mobile’s low cost of living compared with other midsize metros allows 58 percent residents and is expected to add 6,700 people through 2024. of households to own a home, in line with the national rate.

SHIPBUILDING INDUSTRY Austal USA builds combat ships and high-speed vessels for the U.S. Navy and is one of the metro’s top employers. Shipbuilder BAE Systems Southeast also calls Mobile home. ECONOMY Shipbuilding, steel and chemical companies drive the growth of the metro’s manufacturing industry. The entry of Airbus to the metro has elevated the aerospace sector, which is also occupied by ST Aerospace and Continental Aerospace Technologies. Education-related positions are numerous, with the Mobile County Public School System and the University of South Alabama representing the metro’s top employers. Activities on and near the water and attractions such as the USS Alabama Battleship Memorial Park result in tourism having a $1 billion economic impact annually in the region. Infirmary Health Systems leads a trio of larger medical systems that employ more than 5,000 people. DEMOGRAPHICS 2019 2019 2019 2019 MEDIAN POPULATION HOUSEHOLDS MEDIAN AGE HOUSEHOLD 418 K INCOME 161 K 37.7 $48,200 Growth Growth U.S. Median 2019-2024* 2019-2024* U.S. Median 1.6% 2.2% 38.1 $60,800 * Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau

Starbucks & Moe’s Southwest Grill | Mobile, AL | 11 STARBUCKS & MOE’S | 390 SCHILLINGER ROAD SOUTH REGIONAL MAP

Starbucks & Moe’s Southwest Grill | Mobile, AL | 12 STARBUCKS & MOE’S | 390 SCHILLINGER ROAD SOUTH LOCAL MAP

Starbucks & Moe’s Southwest Grill | Mobile, AL | 13 STARBUCKS & MOE’S | 390 SCHILLINGER ROAD SOUTH DEMOGRAPHICS

POPULATION 1 MILES 3 MILES 5 MILES HOUSEHOLDS BY EXPENDITURE 1 MILES 3 MILES 5 MILES ƒ 2024 Projection Total Average Household Retail Expenditure $52,654 $64,383 $61,326 Total Population 1,118 27,768 93,958 ƒ Consumer Expenditure Top 10 Categories ƒ 2019 Estimate Housing $12,932 $15,204 $14,677 Total Population 1,078 26,828 92,934 Transportation $10,527 $12,881 $12,188 ƒ 2010 Census Shelter $6,444 $7,579 $7,409 Total Population 1,037 25,843 92,672 Food $5,610 $6,926 $6,595 ƒ 2000 Census Personal Insurance and Pensions $4,095 $5,578 $5,259 Total Population 1,062 26,800 88,907 Health Care $3,983 $4,969 $4,634 ƒ Current Daytime Population Utilities $3,457 $3,937 $3,828 2019 Estimate 1,290 23,400 82,511 Entertainment $1,853 $2,316 $2,179 HOUSEHOLDS 1 MILES 3 MILES 5 MILES Cash Contributions $1,828 $2,575 $2,298 ƒ 2024 Projection Household Operations $1,653 $2,154 $1,871 Total Households 472 11,372 38,518 POPULATION PROFILE 1 MILES 3 MILES 5 MILES ƒ 2019 Estimate ƒ Population By Age Total Households 450 10,877 37,795 2019 Estimate Total Population 1,078 26,828 92,934 Average (Mean) Household Size 2.46 2.45 2.46 Under 20 25.66% 23.17% 25.41% ƒ 2010 Census 20 to 34 Years 19.00% 18.09% 20.21% Total Households 429 10,372 37,315 35 to 39 Years 6.11% 5.61% 5.93% ƒ 2000 Census 40 to 49 Years 11.68% 11.73% 11.47% Total Households 457 10,496 34,987 50 to 64 Years 19.26% 21.30% 19.95% ƒ Occupied Units Age 65+ 18.28% 20.08% 17.02% 2024 Projection 472 11,372 38,518 Median Age 39.33 42.84 38.66 2019 Estimate 491 11,888 41,803 ƒ Population 25+ By Education Level HOUSEHOLDS 1 MILES 3 MILES 5 MILES 2019 Estimate Population Age 25+ 742 19,114 63,602 ƒ 2019 Estimate Elementary (0-8) 2.46% 1.48% 1.69% $150,00 or More 4.98% 7.20% 7.06% Some High School (9-11) 12.77% 7.81% 7.70% $100,000 - $149,999 6.52% 12.92% 12.20% High School Graduate (12) 41.68% 32.19% 31.44% $75,000 - $99,999 9.25% 13.68% 11.82% Some College (13-15) 21.59% 24.50% 23.88% $50,000 - $74,999 19.10% 21.50% 20.56% Associate Degree Only 6.37% 7.86% 7.91% $35,000 - $49,999 10.68% 12.97% 13.02% Bachelors Degree Only 10.46% 16.32% 17.46% Under $35,000 49.47% 31.75% 35.32% Graduate Degree 4.35% 8.98% 9.00% Average Household Income $59,469 $73,144 $70,662 Median Household Income $35,406 $55,314 $51,773

Per Capita Income $24,909 $29,769 $28,780 Source: © 2019 Experian

Starbucks & Moe’s Southwest Grill | Mobile, AL | 14 STARBUCKS & MOE’S | 390 SCHILLINGER ROAD SOUTH DEMOGRAPHICS

Population Race and Ethnicity

In 2019, the population in your selected geography is 113,265. The The current year racial makeup of your selected area is population has changed by 14.07% since 2000. It is estimated that as follows: 64.73% White, 28.21% Black, 0.03% Native the population in your area will be 115,497.00 five years from now, American and 3.15% Asian/Pacific Islander. Compare these which represents a change of 1.97% from the current year. The to US averages which are: 69.84% White, 12.88% Black, current population is 47.18% male and 52.82% female. The median 0.20% Native American and 5.75% Asian/Pacific Islander. age of the population in your area is 37.62, compare this to the People of Hispanic origin are counted independently of race. US average which is 38.21. The population density in your area is 1,442.95 people per square mile. People of Hispanic origin make up 3.93% of the current year population in your selected area. Compare this to the US average of 18.38%. Households

There are currently 45,600 households in your selected geography. Housing The number of households has changed by 19.06% since 2000. It is estimated that the number of households in your area will be The median housing value in your area was $172,302 in 2019, 46,829 five years from now, which represents a change of 2.70% compare this to the US average of $221,068. In 2000, there were from the current year. The average household size in your area is 26,569 owner occupied housing units in your area and there were 2.45 persons. 11,732 renter occupied housing units in your area. The median rent at the time was $463.

Income

In 2019, the median household income for your selected geography Employment is $57,726, compare this to the US average which is currently $62,990. The median household income for your area has In 2019, there are 42,037 employees in your selected area, this is changed by 29.51% since 2000. It is estimated that the median also known as the daytime population. The 2000 Census revealed household income in your area will be $66,549 five years from that 68.84% of employees are employed in white-collar occupations now, which represents a change of 15.28% from the current year. in this geography, and 31.27% are employed in blue-collar occupations. In 2019, unemployment in this area is 3.03%. In 2000, The current year per capita income in your area is $31,403, compare the average time traveled to work was 26.00 minutes. this to the US average, which is $34,935. The current year average household income in your area is $77,657, compare this to the US average which is $90,941.

Source: © 2019 Experian

Starbucks & Moe’s Southwest Grill | Mobile, AL | 15 STARBUCKS & MOE’S | 390 SCHILLINGER ROAD SOUTH

NON-ENDORSEMENT AND DISCLAIMER NOTICE

Confidentiality and Disclaimer The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap Real Estate Investment Services of Florida, Inc. (“Marcus & Millichap”) and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc.©2018 Marcus & Millichap. All rights reserved.

Non-Endorsement Notice Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

Starbucks & Moe’s Southwest Grill | Mobile, AL | 16