VIEW PROPERTY VIDEO OFFERING MEMORANDUM Shops on the Parkway Murfreesboro, TN | Nashville MSA This property is listed in conjunction with Tennessee-licensed real estate broker JLL. TABLE OF CONTENTS PROPERTY HIGHLIGHTS 1 SITE PLAN 8 PROPERTY OVERVIEW 2 AERIAL 9 FINANCIAL ANALYSIS 3 ABOUT THE AREA 10 RENT ROLL 6 DEMOGRAPHICS 12 TENANT PROFILES 7 Disclaimer Preserve West Capital (“Broker”) has been retained on an exclusive basis to market the property described herein (“Property”). Broker has PROPERTY LEAD been authorized by the Seller of the Property (“Seller”) to prepare and distribute the enclosed information (“Material”) for the purpose of Putnam Daily soliciting offers to purchase from interested parties. More detailed financial, title and tenant lease information may be made available upon Partner request following the mutual execution of a letter of intent or contract to purchase between the Seller and a prospective purchaser. You are invited to review this opportunity and make an offer to purchase based upon your analysis. If your offer results in the Seller choosing 415.445.5107 to open negotiations with you, you will be asked to provide financial references. The eventual purchaser will be chosen based upon an [email protected] assessment of price, terms, ability to close the transaction and such other matters as the Seller deems appropriate. CA RE License #01750064 The Material is intended solely for the purpose of soliciting expressions of interest from qualified investors for the acquisition of the Property. The Material is not to be copied and/or used for any other purpose or made available to any other person without the express Michael Maffia written consent of Broker or Seller. The Material does not purport to be all-inclusive or to contain all of the information that a prospective Managing Partner buyer may require. The information contained in the Material has been obtained from the Seller and other sources and has not been verified 415.445.5144 by the Seller or its affiliates. The pro forma is delivered only as an accommodation and neither the Seller, Broker, nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries, members, managers, partners, shareholders, directors, or officers, [email protected] makes any representation or warranty regarding such pro forma. Purchaser must make its own investigation of the Property and any CA RE License #01340853 existing or available financing, and must independently confirm the accuracy of the projections contained in the pro forma. Seller reserves the right, for any reason, to withdraw the Property from the market. Seller has no obligation, express or implied, to accept Gary Shanks any offer. Further, Seller has no obligation to sell the Property unless and until the Seller executes and delivers a signed agreement of JLL purchase and sale on terms acceptable to the Seller, in its sole discretion. By submitting an offer, a purchaser will be deemed to have 615.928.5323 acknowledged the foregoing and agreed to release Seller and Broker from any liability with respect thereto. [email protected] Property walk-throughs are to be conducted by appointment only. Contact Broker for additional information. TN RE License #291020 Miller Fitts JLL 615.928.5324 [email protected] preservewestcapital.com | us.jll.com TN RE License #337018 PROPERTY HIGHLIGHTS Property Highlights THE OAKS SHOPPING MALL • 100% Leased Retail Shops Buildings TOWNE CENTRE - Scheduled Rental Escalations in 100% of Leases - Sustainable Rental Rates At and Below Market • Internet-Resistant National & Regional Tenant Mix Anchored by Pediatric Urgent Care & Dental Office STONES RIVER TOWN CENTRE MALL - Dental and Medical Tenants Are Essential Businesses Not Affected by Pandemic Restrictions or E-Commerce • Excellent Access & Visibility 1.5 Miles from I-24 Arterial - Combined AADT of 147,591 • Robust Demographics in Surrounding Area on Ln N Thomps - Total Daytime Population of 145,673 within 5 Miles of Site Vintage Gateway Apartments - Average Household Income of $83,981 within 1 Mile Radius 115-Room Hyatt Place Hotel - Annual Population Growth Rate of 3.93% within 1 Opening June 2021 Mile of Site • Strategic Location in Dense Retail Hub Future Development- Neighboring Anchor Tenants Include Walmart Me dic Supercenter, Kroger, Target, ALDI, Walgreens, al Ce Cost Plus World Market, & More nt er Pk • 5 Miles from Middle Tennessee State University wy (2 6, - Student Body of 21,721 90 2 AA - 2,205 Employees DT ) • Less than 1 Mile from Ascension Saint Thomas Rutherford Hospital - 322-Bed Hospital with Staff of 1,400 • 30 Miles from Downtown Nashville • Tennessee is the #1 Net Migration State in the Last Year Dr • No State Income Tax in Tennessee ose t R r | 1 Robe PROPERTY OVERVIEW The Investment Improvements Shops on the Parkway offers the unique opportunity for an investor to acquire two fully-leased A 6,500 square foot retail building demised into two retail suites and a shops building within Nashville’s largest suburb leased to a diverse, internet-resistant mix of 9,450 square foot retail building demised into three retail suites. national and regional tenants featuring medical and dental uses. With excellent access and visibility less than 1.5 miles from the I-24 arterial (120,692 AADT), robust demographics with an 2243 Medical Center Parkway – 6,500 square feet annual population growth rate of 3.93% within 1 mile of the site, and average household income Select Comfort | 2,800 square feet of $83,981, and investor will benefit from scheduled increases in income, a diversified income Bad Daddy Burger | 3,700 square feet stream, and asset appreciation with this property. 2249 Medical Center Parkway – 9.450 square feet Location CycleBar | 2,282 square feet Deca Dental | 2,668 square feet The property is located at 2243 and 2249 Medical Center Parkway in Murfreesboro, TN. PM Pediatrics | 4,500 square feet Lot Size Parking Approximately 2.5 acres or 108,900 square feet. There is ample parking available onsite. | 2 FINANCIAL ANALYSIS PRICING PRICE $9,808,000 6.15% CAP Rate Projected Gross Revenue YEAR 1 YEAR 10 YEAR 1 YEAR 10 Scheduled Base Rental Revenue $605,236 $694,305 Expense Reimbursement Revenue $118,690 $148,881 Net Operating Income $603,216 $691,671 Total Potential Gross Revenue $723,926 $843,186 Return 6.15% 7.05% Effective Gross Revenue $723,926 $843,186 Annual Expenses Common Area Maintenance $57,101 $74,504 Note Insurance $3,350 $4,370 The net income is an estimate and does not provide for all potential costs and expenses (i.e. maintenance, repair, etc.) that may be required of the owner. Any reserves set forth herein are Taxes $54,549 $65,191 merely estimates and not based on any experience, physical inspection, or prior knowledge. All Management @ 10% of CAM $5,710 $7,450 prospective purchasers are strongly advised to make an independent investigation to determine their estimate of costs and expenses prior to entering into an agreement to purchase. Total Operating Expenses $120,710 $151,515 | 3 FINANCIAL ANALYSIS CASH FLOW PROJECTION Murfreesboro Shops Cash Flow Projection Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Jul-2021 Jul-2022 Jul-2023 Jul-2024 Jul-2025 Jul-2026 Jul-2027 Jul-2028 Jul-2029 Jul-2030 Jul-2031 Jun-2022 Jun-2023 Jun-2024 Jun-2025 Jun-2026 Jun-2027 Jun-2028 Jun-2029 Jun-2030 Jun-2031 Jun-2032 Net Rentable Area - Sq. Ft. 15,950 Base Rental Revenue PSF/month $3.16 $3.16 $3.16 $3.28 $3.36 $3.41 $3.41 $3.41 $3.49 $3.63 $3.65 Total Operating Expenses PSF/year $7.57 $7.76 $7.96 $8.16 $8.37 $8.58 $8.80 $9.03 $9.26 $9.50 $9.74 Absorption & Turnover Vacancy % - - - - - - - - - - - Vacancy Allowance % - - - - - - - - - - - Rental Revenue Potential Base Rent 605,236 605,236 605,236 627,391 642,960 652,298 652,298 652,298 668,859 694,305 697,728 Absorption & Turnover Vacancy - - - - - - - - - - - * Total Rental Revenue 605,236 605,236 605,236 627,391 642,960 652,298 652,298 652,298 668,859 694,305 697,728 Total Expense Recoveries 118,690 121,705 124,800 127,977 131,237 134,584 138,019 141,545 145,165 148,881 152,695 Potential Gross Revenue 723,926 726,941 730,036 755,368 774,197 786,882 790,317 793,843 814,024 843,186 850,423 Vacancy Allowance - - - - - - - - - - - Effective Gross Revenue 723,926 726,941 730,036 755,368 774,197 786,882 790,317 793,843 814,024 843,186 850,423 Operating Expenses CAM - $3.58 57,101 58,814 60,578 62,396 64,268 66,196 68,182 70,227 72,334 74,504 76,739 Insurance - $0.21 3,350 3,450 3,553 3,660 3,770 3,883 3,999 4,119 4,243 4,370 4,501 Taxes - $3.42 54,549 55,640 56,753 57,888 59,046 60,227 61,431 62,660 63,913 65,191 66,495 Mgmt. @ 10% of CAM 5,710 5,881 6,058 6,240 6,427 6,620 6,818 7,023 7,233 7,450 7,674 Total Operating Expenses 120,710 123,785 126,942 130,184 133,511 136,926 140,430 144,029 147,723 151,515 155,409 NET OPERATING INCOME 603,216 603,156 603,094 625,184 640,686 649,956 649,887 649,814 666,301 691,671 695,014 Leasing & Capital Costs Tenant Improvements - - - - - - - - - - - Leasing Commissions - - - - - - - - - - - Capital Expenditures - - - - - - - - - - - Total Leasing & Capital Costs - - - - - - - - - - - Cash Flow Before Debt Service 603,216 603,156 603,094 625,184 640,686 649,956 649,887 649,814 666,301 691,671 695,014 INTERNAL RATE OF RETURN - 10 Year Hold EXIT SALE CALCULATION - End of Year 10 IRR Price Per SF Cap Year 1 Total Dollars Per SF Capped Value @ 6.15% $11,301,041 $708.53 7.29% $9,808,399 $614.95 6.15% Cost of Sale @ 3.00% (339,031) (21.26) Net Sale Proceeds $10,962,010 $687.27 | 4 4/5/2021 - 2:48 PM FINANCIAL ANALYSIS GENERAL ASSUMPTIONS General Assumptions Analysis Date July 2021 Total Rentable Area 15,950 SF Total Area for CAM 15,950 SF Reimbursement Calculations General Inflation per Annum 3% General Expense Growth 3% per Annum Real Estate Tax Growth 2% per Annum Management Fee 10% of CAM | 5 RENT ROLL Current Rent Lease Rental Rental Monthly Annual End of Term Tenant Sq.