Shops at Turner Hill 8200 Mall Parkway, Lithonia, Ga 30038 ™ Offering Memorandum Confidentiality & Disclaimer Statement

SHOPS AT TURNER HILL 8200 MALL PARKWAY, LITHONIA, GA 30038 ™ OFFERING MEMORANDUM CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offering Memorandum contains select information pertaining to the business and affairs of Shops at Turner Hill located at 8200 Mall Parkway, Lithonia, GA 30038 (“Property”). It has been prepared by Matthews Retail Advisors . This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Retail Advisors . The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1. The Offering Memorandum and its contents are confidential;

2. You will hold it and treat it in the strictest of confidence; and

3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Matthews Retail Advisors expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Retail Advisors or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

Matthews Retail Advisors Table of Contents PRICING & FINANCIAL ANALYSIS Investments Highlights...... 2 Executive Summary...... 3 Market Financing Assumptions...... 4 Assumptions...... 5 Schedule of Prospective Cash Flow...... 6 Schedule of Leveraged Prospective Cash Flow...... 7 Rent Roll...... 8 Company Overview - Panera Bread...... 11

PROPERTY DESCRIPTION Physical Description...... 15 Tenant Map...... 16 Birds Eye...... 17 Site Plan...... 18 Regional Map...... 19

DEMOGRAPHICS City Overview | Lithonia, GA...... 21 MSA Overview | Atlanta, GA...... 22 Demographics...... 23

EXCLUSIVELY LISTED BY: Kyle B. Matthews, CCIM Patrick Toomey Chairman & CEO Managing Partner DIRECT +1.310.919.5757 DIRECT +1.310.919.5765 MOBILE +1.310.622.3161 MOBILE +1.310.403.4984 [email protected] [email protected] License No. 01469842 License No. 00881133 Matthews Retail Advisors P. iv ™ OFFERING MEMORANDUM | Shops At Turner Hill Pricing & Financial Analysis

™ PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

Investments Highlights

• HIGH QUALITY RETAIL CENTER 81% occupied with established national and regional tenants at attractive rents.

• UPSIDE OPPORTUNITY through rent growth and outparcel development opportunity.

• STRONG DEMOGRAPHICS AND GROWTH IN THE 10-MILE TRADE AREA: 405,791± people with a $66,058 average household income in a strong growth market at 9% population growth and 9% projected 5-year household growth rate.

• EXCELLENT REGIONAL LOCATION near The Mall At Stonecrest, a 1.3 million SF regional mall, and is the largest concentration of retail outside Atlanta’s eastern perimeter and the dominant retail destination on the I-20 Conyers/ Covington/Augusta corridor.

• BENEFITS FROM PROXIMITY TO THE MALL AT STONECREST Anchored by Sears, Macy’s, Dillard’s, Kohl’s and JC Penney, the Mall At Stonecrest provides a strong regional draw. Peripheral mall development includes many major junior department stores and national retailers, such as: AMC Theaters, Ashley Furniture, Marshall’s, Ross, Staples, Haverty’s, Petco, Babies R Us, IHOP, Chili’s, Applebees, Chick-fil-A, Olive Garden and more.

• HIGH TRAFFIC COUNTS with approximately 19,900± vehicles per day on Turner Hill Road south of I-20.

• EXCELLENT VISIBILITY AND SIGNAGE, FUNCTIONAL SITE PLAN WITH EASY ACCESS and generous parking.

• ELIGIBLE FOR NEW FINANCING at attractive rates and terms, current credit market conditions are very favorable for quality properties.

P. 2 ™ OFFERING MEMORANDUM | Shops At Turner Hill PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

Executive Summary

SHOPS AT TURNER HILL 8200 MALL PARKWAY LITHONIA, GA 30038 Suggested List Price �� $6,182,000 Gross Leasable Area ��32,200 SF Price/SF ��$192 CAP Rate - Current �� 7.50% Occupancy ��81% Year 1 NOI �� $463,652 Year 3 NOI (Stab.) ��$548,722 Year Built �� 2003 Lot Size �� 14.718 Acres*

* Includes 10.168 acres behind center which may not be developable.

Shops At Turner Hill | OFFERING MEMORANDUM ™ P. 3 PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

Market Financing Assumptions

First Trust Deed Market financing assumptions provided by Brian Krebs of Barrington LTV 70% Capital, (818) 606-9476. Terms are subject to change with market Loan Type CMBS conditions, property-level conditions, and sponsor qualifications. Origination Fee 1% Please contact Brian for a specific loan quote. Recourse/Non-Recourse TBD Interest Rate 4.25% Amortization 25 Years Term 10 Years

P. 4 ™ OFFERING MEMORANDUM | Shops At Turner Hill PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

Assumptions

Property Timing Property Operating Parameters

Growth Rates: Capital Expense (Year 1): Start of Analysis January 2016 Market Rents 3% Capital Reserves $0.15/SF End of Analysis December 2026 Operating Expenses 3% Analysis Period 10 Years Real Estate Taxes 2% General Vacancy: Capital Reserves 3% Year 1-10 3% for non credit tenants CPI 3%

Market Rents Operating Expenses (Year 1): Shop Space $14.00 Real Estate Taxes Reassessed Lease Type NNN Insurance 2015 Budget CAM 2015 Budget Management Fees 3% of EGR

Shops At Turner Hill | OFFERING MEMORANDUM ™ P. 5 PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

Schedule of Prospective Cash Flow

Year 1 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 $ / SF Dec-2016 Dec-2017 Dec-2018 Dec-2019 Dec-2020 Dec-2021 Dec-2022 Dec-2023 Dec-2024 Dec-2025 Dec-2026 EFFECTIVE GROSS REVENUE Base Rental Revenue $17.34 558,344 541,049 550,730 554,372 570,458 593,190 612,863 631,280 646,718 677,699 678,964 Absorption & Turnover Vacancy ($2.80) (90,000) (46,350) 0 (5,737) (4,220) 0 (16,119) (3,690) (11,875) (10,764) 0 Scheduled Base Rental Revenue $14.54 468,344 494,699 550,730 548,635 566,238 593,190 596,744 627,590 634,843 666,935 678,964 CPI and Other Adjustment Revenue $0.01 257 787 2,615 5,418 6,858 8,052 3,764 0 0 0 0 Expense Reimbursement Revenue $3.63 116,735 134,329 153,072 154,838 159,361 165,020 164,221 172,253 174,082 179,323 185,579 Recycle Bins $0.14 4,500 4,635 4,774 4,917 5,065 5,217 5,373 5,534 5,700 5,871 6,048 Specialty Income $0.01 480 494 509 525 540 556 573 590 608 626 645 Pylon Sign Income $0.10 3,084 3,177 3,272 3,370 3,471 3,575 3,682 3,793 3,907 4,024 4,145 Trash Management $0.09 3,012 3,102 3,195 3,291 3,390 3,492 3,596 3,704 3,816 3,930 4,048 Total Potential Gross Revenue $18.52 596,412 641,223 718,167 720,994 744,923 779,102 777,953 813,464 822,956 860,709 879,429 General Vacancy $0.00 0 0 (27,876) (22,219) (24,303) (30,161) (15,823) (28,050) (20,266) (22,566) (34,193) TOTAL EFFECTIVE GROSS REVENUE $18.52 596,412 641,223 690,291 698,775 720,620 748,941 762,130 785,414 802,690 838,143 845,236 OPERATING EXPENSES Real Estate Taxes $1.95 62,932 64,191 65,474 66,784 68,120 69,482 70,872 72,289 73,735 75,210 76,714 Insurance $0.15 4,830 4,974 5,124 5,278 5,436 5,600 5,767 5,940 6,118 6,302 6,491 CAM $1.37 44,124 45,448 46,811 48,214 49,661 51,152 52,686 54,267 55,893 57,572 59,299 Management Fee $0.65 20,874 22,443 24,160 24,457 25,222 26,213 26,675 27,489 28,094 29,335 29,583 TOTAL OPERATING EXPENSES $4.12 132,760 137,056 141,569 144,733 148,439 152,447 156,000 159,985 163,840 168,419 172,087 NET OPERATING INCOME $14.40 463,652 504,167 548,722 554,042 572,181 596,494 606,130 625,429 638,850 669,724 673,149 LEASING & CAPITAL COSTS Tenant Improvements $0.00 0 108,000 9,000 22,500 31,500 0 81,000 18,000 56,250 31,500 18,000 Leasing Commissions $0.00 0 34,748 3,042 7,832 11,294 0 30,807 7,052 22,699 13,093 7,706 Capital Reserves $0.15 4,830 4,975 5,124 5,278 5,436 5,599 5,767 5,940 6,118 6,302 6,491 TOTAL LEASING & CAPITAL COSTS $0.15 4,830 147,723 17,166 35,610 48,230 5,599 117,574 30,992 85,067 50,895 32,197 CASH FLOW $14.25 458,822 356,444 531,556 518,432 523,951 590,895 488,556 594,437 553,783 618,829 640,952

P. 6 ™ OFFERING MEMORANDUM | Shops At Turner Hill PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

Schedule of Leveraged Prospective Cash Flow

Initial Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 1/1/2016 Dec-2016 Dec-2017 Dec-2018 Dec-2019 Dec-2020 Dec-2021 Dec-2022 Dec-2023 Dec-2024 Dec-2025 PROPERTY CASH FLOW Revenue 596,412 641,223 690,291 698,775 720,620 748,941 762,130 785,414 802,690 838,143 Operating Expense (132,760) (137,056) (141,569) (144,733) (148,439) (152,447) (156,000) (159,985) (163,840) (168,419) NET OPERATING INCOME 463,652 504,167 548,722 554,042 572,181 596,494 606,130 625,429 638,850 669,724 Capital Expense (4,830) (147,723) (17,166) (35,610) (48,230) (5,599) (117,574) (30,992) (85,067) (50,895) FUNDED PROPERTY CASH FLOW 458,822 356,444 531,556 518,432 523,951 590,895 488,556 594,437 553,783 618,829 DEBT SERVICE Senior Interest (168,940) (164,945) (160,776) (156,426) (151,888) (147,153) (142,214) (137,060) (131,682) (126,072) Senior Principal (92,199) (96,195) (100,364) (104,713) (109,251) (113,986) (118,926) (124,080) (129,457) (135,068) CASH FLOW AFTER DEBT SERVICE 197,683 95,305 270,417 257,293 262,812 329,756 227,417 333,298 292,644 357,690 NET FINANCING Acquisition/Disposition (6,180,000) 0 0 0 0 0 0 0 0 0 7,761,012 Loan Maturity 0 0 0 0 0 0 0 0 0 0 0 New Loan Funding 4,017,000 0 0 0 0 0 0 0 0 0 0 Loan Fees (40,170) 0 0 0 0 0 0 0 0 0 0 CASH FLOW AFTER FINANCING (2,203,170) 197,683 95,305 270,417 257,293 262,812 329,756 227,417 333,298 292,644 5,225,940 LEVERAGED YIELD Leveraged Cost Basis 6,220,170 6,225,000 6,372,723 6,389,889 6,425,499 6,473,729 6,479,328 6,596,902 6,627,894 6,712,961 6,763,856 Cumulative Equity 2,203,170 2,300,199 2,544,117 2,661,647 2,801,970 2,959,451 3,079,036 3,315,536 3,470,608 3,685,132 3,871,095

LEVERAGED YIELD (On Initial Equity) 11.91% (Avg) 8.97% 4.33% 12.27% 11.68% 11.93% 14.97% 10.32% 15.13% 13.28% 16.24%

P. 7 ™ OFFERING MEMORANDUM | Shops At Turner Hill PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

Rent Roll

Tenant Suite Lease Start Lease End SF %GLA Date Rent PSF Ann. Rent Recovery Rent Market %Market.. Assm. MLA Panera Bread A100 2/1/05 12/31/19 4,900 15.22% 1/1/16 $22.99 $112,656 NNN + 15% $22.99 $24.00 95.79% Option Strip Space 1/1/20 12/31/24 1/1/20 $25.28 $25.28 $26.00 97.23% Option Strip Space 1/1/25 12/31/29 1/1/25 $27.80 Market Strip Space Next Level Mar- A120 10/1/14 10/31/19 2,100 6.52% 1/1/16 $13.75 $28,872 NNN + 15% $14.65 $16.39 89.38% Option Strip Space tial Arts 11/1/16 $14.00 11/1/17 $14.28 11/1/18 $14.65 11/1/19 10/31/24 11/1/19 $14.99 $16.88 $19.00 88.84% Market Strip Space 11/1/20 $15.45 11/1/21 $15.91 11/1/22 $16.39 11/1/23 $16.88 Nevaeh B125 6/1/08 6/30/17 1,200 3.73% 1/1/16 $15.25 $18,300 NNN + 15% $15.25 $15.45 98.71% Market Strip Space Grand China B130 8/1/04 7/31/19 1,200 3.73% 1/1/16 $26.50 $31,800 NNN + 15% $27.71 $28.00 98.96% Market Strip Space 8/1/16 $26.90 8/1/17 $27.30 8/1/18 $27.71 Hot Ashes B135 11/1/14 11/30/19 1,200 3.73% 1/1/16 $16.48 $19,776 NNN + 15% $18.00 $16.39 109.82% Market Strip Space 12/1/16 $16.97 12/1/17 $17.49 12/1/18 $18.02

Shops At Turner Hill | OFFERING MEMORANDUM ™ P. 8 PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

Rent Roll (cont.)

Tenant Suite Lease Start Lease End SF %GLA Date Rent PSF Ann. Rent Recovery Rent Market %Market.. Assm. MLA Gentlemen's B140 10/1/13 10/31/18 1,200 3.73% 1/1/16 $14.50 $17,400 NNN + 15% $15.00 $15.91 94.28% Option Strip Space Touch Barbers 11/1/16 $15.00 11/1/18 10/31/23 11/1/18 $16.50 $18.00 $18.45 97.56% Market Strip Space 11/1/20 $17.00 11/1/21 $17.50 11/1/22 $18.00 Cartridge World B145 11/1/12 11/30/17 1,200 3.73% 1/1/16 $11.85 $14,220 NNN + 15% $12.33 $15.45 79.81% Market Strip Space 12/1/16 $12.32 Vacant B150 6/1/17 5/31/22 1,200 3.73% 6/1/17 $15.00 NNN + 15% $15.00 $17.91 83.75% Market Strip Space Beautiful Smiles B155 11/1/05 11/30/15 2,400 7.45% 1/1/16 $22.19 $53,256 Beautiful $22.19 $22.00 100.86% Option Strip Space Family Dentist* Smiles 12/1/20 11/30/25 12/1/20 $26.09 $26.09 $26.00 100.35% Market Strip Space Edward Jones B165 4/1/06 12/31/16 1,200 3.73% 1/1/16 $20.03 $24,036 NNN + 15% $20.04 $20.00 100.20% Market Strip Space Vacant B170 6/1/17 5/31/22 1,200 3.73% 6/1/17 $15.00 NNN + 15% $15.00 $17.91 83.75% Market Strip Space Vacant B175 6/1/17 5/31/22 1,200 3.73% 6/1/17 $15.00 NNN + 15% $15.00 $17.91 83.75% Market Strip Space Vacant B180 6/1/17 5/31/22 1,200 3.73% 6/1/17 $15.00 NNN + 15% $15.00 $17.91 83.75% Market Strip Space Kim's Nails B185 4/1/07 12/31/16 1,200 3.73% 1/1/16 $30.57 $36,684 NNN + 15% $30.56 $28.00 109.14% Market Strip Space Vacant B190 6/1/17 5/31/22 1,200 3.73% 6/1/17 $15.00 NNN + 15% $15.00 $17.91 83.75% Market Strip Space

* Beautiful Smiles expires 11/2015; model assumes held in place at current rent through 12/2016 (end of first year of analysis)

P. 9 ™ OFFERING MEMORANDUM | Shops At Turner Hill PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

Rent Roll (cont.)

Tenant Suite Lease Start Lease End SF %GLA Date Rent PSF Ann. Rent Recovery Rent Market %Market.. Assm. MLA AIO B195 3/1/14 3/31/17 1,200 3.73% 1/1/16 $14.00 $16,800 NNN + 15% $14.00 $15.45 90.61% Option Strip Space 4/1/17 3/31/20 4/1/17 $15.40 $15.40 $16.88 91.23% Market Strip Space Duval B200 8/1/14 9/31/19 2,400 7.45% 1/1/16 $13.00 $31,200 NNN + 15% $14.42 $16.39 87.98% Option Strip Space Orthodontics** 9/1/17 $13.60 9/1/18 $14.00 9/1/19 $14.42 10/1/19 9/31/24 9/1/19 $14.42 $16.23 $19.00 85.42% Market Strip Space 9/1/20 $14.86 9/1/21 $15.30 9/1/22 $15.76 9/1/23 $16.23 Alterations By C210 2/1/08 12/31/16 1,200 3.73% 1/1/16 $16.00 $19,200 NNN + 15% $16.00 $15.00 106.67% Market Strip Space Nam Hilltop C215 7/1/15 6/30/20 1,800 5.59% 1/1/16 $9.50 $17,100 NNN + 15% $11.11 $16.88 65.82% Market Strip Space Carribean Grill 7/1/16 $9.88 7/1/17 $10.27 7/1/18 $10.69 7/1/19 $11.11 1-800-Newdeal C225 4/1/13 4/30/19 1,800 5.59% 1/1/16 $14.28 $25,704 NNN + 15% $15.15 $16.39 92.43% Market Strip Space 5/1/16 $14.71 5/1/18 $15.15 TOTAL 32,200 VACANT 6,000 19% OCCUPIED 26,200 71%

** Options include 2% increases annually

Shops At Turner Hill | OFFERING MEMORANDUM ™ P. 10 PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

Company Overview - Panera Bread

Tenant Trade Name Panera Bread The Panera Bread® legacy began in 1981 as Au Bon Pain Co., Inc. Founded by Louis Kane and Ron Shaich, the company prospered along the east coast of the United States and internationally Lease executed by Panera, LLC throughout the 1980’s and 1990’s and became the dominant operator within the bakery-cafe Ownership Public category. In 1993, Au Bon Pain Co., Inc. purchased Saint Louis Bread Company®, a chain of 20 Stock Symbol PNRA bakery-cafes located in the St.Louis area. The company then managed a comprehensive re- Board NASDAQ staging of Saint Louis Bread Company®. Between 1993 and 1997 average unit volumes increased by 75%. Revenue $2.385 Billion No. of Locations ±1,800 Ultimately, the concept’s name was changed to Panera Bread. By 1997, it was clear that Panera No. Employees 17,400 Bread had the potential to become one of the leading brands in the nation. In order for Panera Web Site http://www.panerabread.com Bread to reach its potential, it would require all of the company’s financial and management resources. In May 1999, all of Au bon Pain Co., Inc.’s business units were sold, with the exception Year Founded 1981 of Panera Bread, and the company was renamed Panera Bread. Since those transactions were Headquartered St. Louis, MO completed, the company’s stock has grown thirteen-fold and over $1 billion in shareholder value has been created. Panera Bread has been recognized as one of Business Week’s “100 Hot Growth Companies.” www.panerabread.com

P. 11 ™ OFFERING MEMORANDUM | Shops At Turner Hill

Property Description

™ PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

Physical Description

THE OFFERING Property Name...... Shops at Turner Hill Property Address ��8200 Mall Parkway Lithonia, GA 30038 Assessor’s Parcel Number...... 16-182-05-001, 2633417 Zoning...... C2 SITE DESCRIPTION Number of Stories ��One Year Built ��2003 Gross Leasable Area (GLA) 32,200 SF Lot Size...... 14.718 Acres* Type of Ownership ��Fee Simple Parking...... 302 Surface Spaces Parking Ratio...... 9.38 : 1,000 SF Landscaping ��Professional Topography...... Generally Level CONSTRUCTION Foundation...... Concrete Slab Framing ��Wood Exterior...... Painted Stucco Parking Surface ��Asphalt Roof...... Flat

* Includes 10.168 acres behind property which may not be developable.

P. 15 ™ OFFERING MEMORANDUM | Shops At Turner Hill PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

Tenant Map

MALL RING RD

The Mall at Stonecrest 20

Opened September 2013 TURNER HILL RD

SHOPS AT TURNER HILL MALL PKWY

Additional land 10.168 acres

Shops At Turner Hill | OFFERING MEMORANDUM ™ P. 16 PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

Birds Eye

Additional land 10. 168 acres

P. 17 ™ OFFERING MEMORANDUM | Shops At Turner Hill PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

Site Plan C225 C210 C215

B200 B195 B190 B185 B180 B175 B170 B165 B155 B150 B145 B140 B135 B130 B125

A120 A100

D100 Mall Blvd (future pad)

Turner Hill Rd

Shops At Turner Hill | OFFERING MEMORANDUM ™ P. 18 PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

Regional Map

P. 19 ™ OFFERING MEMORANDUM | Shops At Turner Hill Demographics

™ City Overview | Lithonia, GA

Lithonia is a city in eastern DeKalb County, Georgia, United States, as well as a collection of unincorporated communities in which it shares its name. As of 2014, Lithonia’s population is 2,053 people. Since 2000, it has had a population growth of 20.76 percent. Compared to the rest of the country, Lithonia’s cost of living is 16.60% lower than the U.S. average. Recent job growth is positive with an increase of 1.77 percent. Lithonia is in the Atlanta metropolitan area.

“Lithonia” means “city/town of stone”. Lithonia is in the heart of the Georgian granite-quarrying and viewing region, hence the name of the town. The huge nearby granite dome, Stone Mountain, is composed largely of a rock called Lithonia gneiss, a form of granite. The area has a history of rock quarries. The mines were served by the Georgia Railroad and Atlanta, Stone Mountain & Lithonia Railway. Some of the rock quarries have been converted to parkland and the railines to rail- trail.

MARTA (Metropolitan Atlanta Rapid Transit Authority) provides connecting bus service to and from Lithonia, and GRTA Xpress (Georgia Rapid Transit Authority) provides commuter bus service to downtown Atlanta from a community park and ride lot.

P. 21 ™ OFFERING MEMORANDUM | Shops At Turner Hill MSA Overview | Atlanta, GA Metro Atlanta Fortune 500 Population for the 28-county metropolitan Atlanta area (Atlanta-Sandy Springs- & Fortune Marietta) rounds to 5.3 million in 2007, growing 24 percent since 2000, according to the U.S. Census. The nation’s fastest-growing MSA from 2000- 2010 was 1000 Headquarters metro Atlanta, which added nearly one million new residents and accounted for 76 percent of the state’s total growth. Metro Atlanta moved from an 11th METRO ATLANTA place ranking in population to 9th from 2000 to 2007. By 2020, the area is HEADQUARTERED forecasted to be the 6th largest metro area in the country with a population of FORTUNE 500 FIRMS 7,291,964, according to Proximity One. Net migration to the Atlanta MSA from 2000 - 2009 rose to 643,228, of which 67 percent was domestic and 33 percent international. COMPANY REVENUE RANK Metro Atlanta’s 1.6 million households in 2000 are projected to increase to 2.0 The Home Depot $74,754.0 34 million in 2008 and to more than 2.3 million in 2013. From 1990 to 2000, metro UPS $54,127.0 53 Atlanta’s college-educated population (25- to 34-year-olds) nearly doubled, The Coca-Cola Company $48,017.0 57 growing faster (46%) than in any of the twenty largest metro areas in the U.S. Atlanta-area households earning $100,000 or more are projected to double to Delta Airlines $36,670.0 83 37 percent of all households from 2000 to 2013, when average household in- Southern Company $16,537.0 171 come is expected to rise to $111,671. Households earning more than $200,000 Genuine Parts $13,031.9 214 will see the greatest gains, comprising 9.6 percent of the area’s income base in 2013. Metro Atlanta adults (age 25+) are better educated. In 2007, 35.3 percent Suntrust Banks $11,240.0 239 of this population earned bachelor’s degrees or higher and 87.9 percent were First Data $10,680.3 254 high school graduates. The averages for the U.S. in 2007 were 29.0 percent AGCO $9,962.2 272 and 86.7 percent respectively. Rock-Tenn $9,207.6 291 Metro Atlanta’s labor force is more than 2.7 million strong. Unemployment con- HD Supply $7,994.0 330 sistently lags the U.S. average (BLS). The region’s healthy job growth, top-rank- Coca-Cola Enterprises $7,562.0 339 ing schools and vibrant economy continue to attract the talent that employers Newell Rubbermaid $5,902.7 433 seek. Employment in the region is projected to grow 2 percent on average per NCR $5,792.0 441 year over the next five years – adding more jobs than from 2003 to 2007. Geor- gia has been a right to work state since 1947. Fewer than half of the states in the Source: Metro Atlanta Chamber U.S. grant workers this protection. Moody’s latest Economy.com report ranks metro Atlanta’s industrial mix 0.8 on a scale of 0 to 1, with 1 representing “Most Diverse.” Atlanta’s diverse employment base is considered one of its greatest economic assets.

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Demographics

Population 1-Mile 3-Mile 5-Mile 2020 Projection 5,567 28,300 102,840 2014 Estimate5 4,997 26,134 96,232 2010 Census 4,355 23,860 89,569 2000 Census 1,492 16,555 70,644 Growth 2015-2020 11.41% 8.29% 6.87% Growth 2010-2015 14.75% 9.53% 7.44% Growth 2000-2010 191.78% 44.12% 26.79%

Households 2020 Projection 2,395 11,127 38,465 2015 Estimate5 2,186 10,255 35,829 2010 Census 2,001 9,392 33,150 2000 Census 544 5,660 24,382 Growth 2015-2020 9.52% 8.51% 7.36% Growth 2010-2015 9.26% 9.19% 8.08% Growth 2000-2010 267.89% 65.93% 35.96% 2015 Est. Average Household Size 2.28 2.49 2.66

Income $ 0 - $14,999 22.19% 18.71% 14.85% $ 15,000 - $24,999 10.16% 12.37% 12.95% $ 25,000 - $34,999 12.03% 12.58% 13.30% $ 35,000 - $49,999 19.85% 18.61% 18.78% $ 50,000 - $74,999 12.53% 15.14% 18.02% $ 75,000 - $99,999 6.95% 9.43% 9.72% $100,000 - $124,999 9.38% 7.23% 6.31% $125,000 - $149,999 3.98% 2.93% 2.65% $150,000 - $199,999 1.19% 2.00% 2.32% $200,000 - $249,999 0.50% 0.45% 0.52% $250,000 - $499,999 0.91% 0.46% 0.49% $500,000+ 0.27% 0.10% 0.09% Average Household Income $53,480 $51,937 $53,305 Median Household Income $39,272 $40,103 $42,110

P. 23 ™ OFFERING MEMORANDUM | Shops At Turner Hill PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

Shops At Turner Hill | OFFERING MEMORANDUM ™ P. 24 SHOPS AT TURNER HILL 8200 Mall Parkway Lithonia, GA 33038 ™ OFFERING MEMORANDUM

Kyle B. Matthews, CCIM Patrick Toomey Chairman & CEO Managing Partner DIRECT +1.310.919.5757 DIRECT +1.310.919.5765 MOBILE +1.310.622.3161 MOBILE +1.310.403.4984 [email protected] [email protected] License No. 01469842 License No. 00881133

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