OFFERING MEMORANDUM

Academy Sports + Outdoors Concord, NC The property is listed in conjunction with -licensed real estate advisor Frank Sproviero www.svnblackstream.com TABLE OF CONTENTS

Property Highlights 1 Aerials 5 Property Information 2 About The Area 7 Tenant Information 3 Demographics 9 Site Plan 4 Broker Information 1 0

Disclaimer Dustin Tenney The material contained in this Offering Brochure is furnished solely for the purpose of considering the purchase of the property within and is not to be used for any Senior Advisor other purpose. This information should not, under any circumstances, be photocopied or disclosed to any third party without the written consent of the SVN® Advisor or Property Owner, or used for any purpose whatsoever other than to evaluate the possible purchase of the Property. The only party authorized to represent 864.757.4761 the Owner in connection with the sale of the Property is the SVN Advisor listed in this proposal, and no other person is authorized by the Owner to provide any [email protected] information or to make any representations other than contained in this Offering Brochure. If the person receiving these materials does not choose to pursue a purchase of the Property, this Offering Brochure must be returned to the SVN Advisor. Neither the SVN Advisor nor the Owner make any representation or SC RE License # 401401 warranty, express or implied, as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied upon as a promise or representation as to the future representation of the Property. This Offering Brochure may include certain statements and estimates with respect to the Property. These Assumptions may or may not be proven to be correct, and there can be no assurance that such estimates will be achieved. Further, the SVN Advisor Daniel Holloway and the Owner disclaim any and all liability for representations or warranties, expressed or implied, contained in or omitted from this Offering Brochure, or any Senior Advisor other written or oral communication transmitted or made available to the recipient. The recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any final, fully executed and delivered Real Estate Purchase Agreement between it and Owner. 864.593.6644 [email protected] The information contained herein is subject to change without notice and the recipient of these materials shall not look to Owner or the SVN Advisor nor any of their officers, employees, representatives, independent contractors or affiliates, for the accuracy or completeness thereof. Recipients of this Offering Brochure are SC RE License #106855 advised and encouraged to conduct their own comprehensive review and analysis of the Property. This Offering Brochure is a solicitation of interest only and is not an offer to sell the Property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest to purchase the Property and expressly reserves the right, at its sole discretion, to terminate negotiations with any entity, for any reason, at any time with or without notice. The Owner shall have Frank Sproviero, CPM no legal commitment or obligation to any entity reviewing the Offering Brochure or making an offer to purchase the Property unless and until the Owner executes and delivers a signed Real Estate Purchase Agreement on terms acceptable to Owner, in Owner’s sole discretion. By submitting an offer, a prospective purchaser will Senior Advisor be deemed to have acknowledged the foregoing and agreed to release the Owner and the SVN Advisor from any liability with respect thereto. To the extent Owner or 704.765.4620 any agent of Owner corresponds with any prospective purchaser, any prospective purchaser should not rely on any such correspondence or statements as binding Owner. Only a fully executed Real Estate Purchase Agreement shall bind the property and each prospective purchaser proceeds at its own risk. [email protected]

www.svnblackstream.com PROPERTY HIGHLIGHTS

SVN Blackstream is pleased to present this opportunity to purchase this NNN-leased Academy Sports + Outdoors in the highly coveted Charlotte MSA. Site is located ±16 miles outside of downtown Charlotte in the highly-coveted suburb of Concord, NC. With approximately seven and a half years remaining on the initial term of the lease and three 5-year options to extend to 2043, this is a great opportunity for any investor interested in the Charlotte market.

This site is surrounded by Class A retail, including Kohls, Lowes Home Improvement, WalMart SuperCenter, and the Concord Mills Mall (with ±1.4 million SF of retail). Demographics are also robust, illustrating the long-term viability of this store and the surrounding retail. SVN Blackstream 1 PROPERTY OVERVIEW

PRICE

$11,440,000 7.0% CAP RATE

Location Net Annual Income Concord Mills Boulevard, Concord, NC Lot Size Year Annual Rent Annual Rent PSF Term ± 8.85 AC Improvements 1-5 $764,998.50 $10.50 PSF Initial ± 73,000 SF Academy Sports w/ monument signage Lease 6-10 $801,427.00 $11.00 PSF Initial Initial Term began March 1, 2013 Initial Term ends March 31, 2028 11-15 $837,855.50 $11.50 PSF Initial Parking ± 200 parking spaces on site 16-20 $874,284.00 $12.00 PSF Option 1 Financing Buyer subject to assuming existing loan of 1% fee, or paying 21-25 $910,712.50 $12.50 PSF Option 2 5% pre-payment penalty. Loan summary: $6.9MM, 4.25% fixed rate, 25 year AM, 6/2025 26-30 maturity date $947,141.00 $13.00 PSF Option 3 Loan assumption requires an aggregate net worth of $5MM and $2MM in liquidty SVN Blackstream 2 ABOUT THE TENANT

Academy Sports + Outdoors benefits from average per-unit sales of nearly $18.7 million. If this is a typical store, the rent to sale ratio will be 3.85%

Academy Sports + Outdoors is a privately owned retailer of discount sporting goods. Their stores carry a wide variety of name-brand equipment, clothing, and shoes for competitive sports, physical fitness training, and outdoor recreational activities such as hunting, fishing, camping, and boating, and provide services including scope mounting, bore sighting, line winding/spooling, propane exchange, golf club trade-in, CO2 refills, racquet stringing, and the ability to purchase hunting and fishing licenses. The company operates more than 240 stores in 16 states throughout the South, Southeast, and Midwest, and has been operating for more than 40 years from its headquarters in Katy, Texas. On September 9, 2020, Academy Sports + Outdoors filed for an initial public offering, applying to be listed on the Nasdaq under the ticker symbol “ASO.” The company could be valued at $2.5 billion or more. The company’s net sales totaled $4.8 billion in 2019, with an average EBITDA per store of $1.3 million. E-commerce sales represented 5% of sales in 2019 and jumped to 11% in the first half of 2020 amid many stay at home orders nationwide. The company’s buy- online-pickup-instore program accounted for approximately 24% of e-commerce sales in 2019 and jumped to 50% in the first half of 2020.

For the 12 months that ended Aug. 1, Academy had approximately $5.3 billion in sales, $204 million of net income and $449 million in adjusted EBITDA. For the six months ended Aug. 1, the company recorded net income of $157.7 million on revenue of $2.74 billion, after net income of $73.8 million on revenue of $2.31 billion in the same period a year ago. Academy kept stores open during the pandemic as it qualified as an essential business under the Cybersecurity and Infrastructure Security Agency and many state guidelines because it provides “essential products, including water, food, cooking fuel, pet supplies, animal feed, safety and security items, fitness and wellness, tools, shelter, first aid, severe weather preparedness and more.”

In June 2020, Moody’s Investors Service upgraded Academy’s rating. The agency changed its outlook for the retailer to “stable” from “negative” and said it believes “solid operating performance trends are likely to continue over the near term, which will significantly reduce risks associated with the company’s ability to refinance its $1.4 billion term loan due July 2022 in a timely and economical manner.” In 2011, the company was acquired by the global investment firm KKR (NYSE: KKR). For the quarter ended June 30, 2020, KKR reported revenue of $1.33 billion, net income of $706.97 million, and total stockholder’s equity of $9.95 billion.

Additional financial information will be provided to qualified buyers. SVN Blackstream 3 SITE PLAN

SVN Blackstream 4 AERIAL VIEW - NORTH

SVN Blackstream 5 AERIAL VIEW - SOUTH

SVN Blackstream 6 ABOUT THE AREA General Overview

The Charlotte metropolitan area is a metropolitan area of North and South Carolina within and surrounding the city of Charlotte. The metropolitan area is located in the , it is the largest metropolitan area in the , and the fourth largest in the Southeastern United States.

The Charlotte metropolitan area is one of the fastest growing metropolitan areas in the United States. The population of the MSA was 2,636,883 as of 2019 Census estimates. The metropolitan area is slightly larger than 3,000 square miles. The Charlotte metro area is a global financial center, transportation hub, and entertainment destination.

Charlotte is the second largest financial hub in the United States behind New York City, being the headquarters for Bank of America and Truist Financial as well as housing the East Coast headquarters and largest employment hub of Wells Fargo. Other Fortune 500 companies headquartered in the metro area include Duke Energy, Honeywell, Lowe's, and Nucor.

The Charlotte metro area is the largest manufacturing region in the Carolinas. The estimated gross metropolitan product (GMP) of the metro area is over $170 billion. Located in Mecklenburg County, Charlotte Douglas International Airport is the sixth-largest airport in the world by aircraft movements and the city's location at the junction of I-85 and I-77 makes it a highway logistics center.

1T1h-e1 5Charlotte metro is also the center of American auto racing and is home to the , , and Charlotte FC. The Charlotte 16m-e2tr0o is home to a number of prominent higher education institutions, including the University of North Carolina at Charlotte, Queens University of Charlotte, , Belmont Abbey College, and many more. The 2p1r-i2m5ary community college for the area is Central Piedmont Community College, which has several campuses throughout Charlotte and the surrounding region. 26-30

SVN Blackstream 7 ABOUT CONCORD, NC Site Overview Concord, NC is located minutes from Charlotte, NC. Concord is the largest city in Cabarrus County and also the county seat. In 2017, WalletHub ranked Concord as one of the fastest growing cities in the United States. Money magazine, in partnership with realtor.com, ranked Concord 38th in its Top 100 Best Places to Live 2017 list.

The City works closely with the Cabarrus Economic Development Corporation to support existing business and recruit new business. Concord invests in a strong infrastructure that accommodates growth. The community offers an excellent school system, a strong arts council, and expanding parks and greenways.

Concord-Padgett Regional Airport is North Carolina's 4th busiest airport. Charlotte Douglas International Airport is approximately 30 minutes away.The University of North Carolina at Charlotte and Rowan Cabarrus Community College help maintain the region's educated, trained, and ready workforce.

Some of North Carolina's top tourist destinations are located in Concord, including NASCAR's and Concord Mills. The City's core is preserved -- featuring a historic and active downtown.

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SVN Blackstream 8 DEMOGRAPHICS

8675 Concord Mills Boulevard, Concord, NC 28027

Major Employers # of in Concord Employees

Carolinas Medical Center 4500

2020 POPULATION AVG HOME VALUE AVG HOUSEHOLD INCOME Cabarrus County Schools 3800

± 96,341 $309,471 $96,311 Cabarrus County Gov 950

City of Concord 901 POPULATION SUMMARY 1 MILE 3 MILES 5 MILES Connextions 900 2010 POPULATION ±2,602 ±38,786 ±109,175 S&D Coffee and Tea 800 2020 POPULATION ±4,497 ±50,429 ±138,188 North Carolina Gov 770 2025 POPULATION ±6,247 ±60,434 ±162,645 *projections Source: Concord Economic Development Source: Site Seer Retail Data SVN Blackstream 9 Dustin Tenney Daniel Holloway Frank Sproviero, CPM Senior Advisor Senior Advisor Senior Advisor 864.757.4761 864.593.6644 704.765.4620 [email protected] [email protected] [email protected] SC RE License # 401401 SC RE License # 106855