SANDY POINTE SHOPPING CENTER 7820 S 700 E • Sandy, UT 84070 1 EXCLUSIVELY LISTED BY

Offering Memorandum

Matthew Porter Brett Jones Tod Jones Senior Associate Associate Senior Associate Associate Member - National Retail Salt Lake City Office Associate Director - National Retail Group Tel: (801) 736-2651 Group Salt Lake City Office Fax: (801) 736-2610 Salt Lake City Office Tel: (801) 736-2638 [email protected] Tel: (801) 736-2619 Fax: (801) 736-2610 License: UT 9761802-SA00 Fax: (801) 736-2610 [email protected] [email protected] License: UT 7770209-SA00 License: UT 5450617-SA00 SANDY POINTE SHOPPING CENTER

OFFERING SUMMARY EXECUTIVE SUMMARY

VITAL DATA YEAR 1 YEAR 2 Price $2,590,000 CAP Rate 7.57% 7.70% Net Operating Loan Amount $1,813,000 $196,112 $199,509 ▪ Anchored by Shell Gas Station - Shadow Income Net Cash Flow Anchored by Harmons Loan Type Proposed New After Debt 9.28% / $72,077 9.71% / $75,474 Service ▪ 7.70% Cap Rate in Year 2 - Annual Rent Interest Rate / 4.75% / 25 Years Total Return 14.26% / $110,831 14.94% / $116,109 Amortization Increases Gross Leasable Area (GLA) 9,175 SF ▪ 9 Years Remaining on Lease with Shell Price/SF $282.29 Tenant which Occupies 34% of Center Current Occupancy 78.09% Year Built / Renovated 1990 / 2000 ▪ Includes Three Absolute Net Cell Tower Lot Size 1.22 acre(s) Leases ▪ Combined Daily Traffic Count of Over 36,800 Vehicles ▪ 5-Mile Population of 323,288 | $90,204

THE OFFERING Average Household Income Property Sandy Pointe Shopping Center Price $2,590,000 Property Address 7820 S 700 E, Sandy, UT DEMOGRAPHICS Assessor’s Parcel Number 22-31-227-012 & 22-31-227-010 SITE DESCRIPTION Year Built/Renovated 1990 1-Miles 3-Miles 5-Miles Gross Leasable Area 9,175 SF 2016 Estimate Pop 20,544 130,094 323,288 Ownership Fee Simple 2016 Census Pop 18,887 120,079 301,845 Lot Size 1.22 acre(s) 2016 Estimate HH 7,925 48,733 116,207 2016 Census HH 7,208 44,426 107,316 Median HH Income $61,018 $63,644 $67,976 Per Capita Income $29,058 $31,136 $32,472 Average HH Income $75,273 $83,000 $90,204

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FINANCIAL ANALYSIS

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FINANCIAL ANALYSIS TENANT SUMMARY

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FINANCIAL ANALYSIS OPERATING STATEMENT

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FINANCIAL ANALYSIS PRICING DETAIL

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OFFERING SUMMARY INVESTMENT OVERVIEW

Marcus & Millichap is pleased to offer a triple net lease investment property. This strip center has well established tenants that have served the surrounding community for a MAJOR EMPLOYERS number of years. The property lies on a hard, signalized corner with multiple curb cuts and

a left turn lane headed north-bound on 700 East. The center is anchored by a Shell EMPLOYER # OF EMPLOYEES branded gas station and convenience store. In addition to the retail leases there are two ALLIANCEDATA 7,392 long term cellular tower land leases owned & operated by T-Mobile via Crown Castle as Barrett Business Services Inc 5,002 well as Clear Wireless. Clear Wireless has equipment at the back of the building on a land Intermountain Medical Center 5,000 lease and AT&T one of the tower tenants occupies one of the building units. A C S 2,500 Maritzcx Holdings LLC 2,000 The property enjoys being situated across the street from Harmon's Grocery Store which is Teleperformance USA 1,650 a well-established, and serves a high-end Utah food market. 700 East is a major retail Stock Building Supply West LLC 1,400 corridor and leads to a regional retail node to the north that has national tenants such as Walmart 1,250 Walmart, Target, Office Max, Ross, DSW, Petco, Bed, Bath & Beyond, Trader Joe, T.J. Becton Dickinson Infusn Therpy 1,200 Maxx, Home Depot and many others. It is also next to Hillcrest High School as well as Selecthealth Benefit Assurance 1,165 Union Middle School. Innovative Staffing Inc 1,100 Smiths 1,005

PROPERTY OVERVIEW

Sandy is a suburb of Salt Lake City in Salt Lake County. It is the sixth largest city in Utah with a population of 95,836 in 2016. Located at the base of the Wasatch Mountains, Sandy is close to four major ski resorts: Brighton, Solitude, Snowbird and Alta. It is also home to the Real Salt Lake, a Major League Soccer Team that plays at the RioTinto Stadium which opened in 2008. Sandy City is currently at the forefront of city planning with numerous re-development projects and resort style, transit oriented developments. Sandy will continue to flourish and be a thriving, business friendly economy for new and existing businesses alike.

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REGIONAL MAP

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AERIAL PHOTO

Subject Property 700 East – 25,770 AADT

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RETAIL MAP

7800 South

Subject Property

Sushi Express Le Salon & Pro Nails

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PROPERTY PHOTO

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ACQUISITION FINANCING

MARCUS & MILLICHAP CAPITAL CORPORATION WHY MMCC?

CAPABILITIES Optimum financing solutions to enhance value MMCC—our fully integrated, dedicated financing arm—is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and Our ability to enhance terms. buyer pool by expanding finance options We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide our clients with the greatest range of Our ability to enhance financing options. seller control • Through buyer Our dedicated, knowledgeable experts understand the challenges of financing qualification support and work tirelessly to resolve all potential issues to the benefit of our clients. • Our ability to manage buyers finance expectations • Ability to monitor and manage buyer/lender progress, insuring timely, predictable closings • By relying on a world class Closed 1,651 National platform $5.1 billion Access to set of debt/equity sources debt and equity operating total national more capital financings within the firm’s volume in 2016 sources than and presenting a tightly in 2016 brokerage any other firm underwritten credit file offices in the industry

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MARKET OVERVIEW

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MARKET OVERVIEW SALT LAKE CITY OVERVIEW

Centrally located among the major Western U.S. markets, Salt Lake City is known as the Crossroads of the West. The metro consists of three counties: Salt Lake, Tooele and Summit. It is situated in the Great Salt Lake Valley in northern Utah. The region is hemmed in by the Great Salt Lake to the northwest, the Wasatch Mountain Range to the east and the Oquirrh Mountains to the west. The metro houses 1.2 million people. Salt Lake City is the largest city, with approximately 200,000 residents. The highest percentage of population growth continues to occur in the suburban areas such as South and West Jordan. The Salt Lake City, Provo-Orem and Ogden-Clearfield metros together comprise the Wasatch Front.

METRO HIGHLIGHTS

EMPLOYMENT GROWTH Skilled trade and educated workers, attractive outdoor recreation opportunities and low overhead costs lure employers to the region.

EXPANDING HOUSEHOLD INCOMES The metro’s household income is consistently well above the national median.

LARGE INSTITUTIONS The Salt Lake City economy benefits from its status as the capital of Utah and the headquarters of the Church of Jesus Christ of Latter-day Saints.

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MARKET OVERVIEW

ECONOMY ▪ A stable base of government entities are located in the metro, while growing companies in the private sector include technology leaders eBay and Oracle Corp. ▪ Various companies have located data centers in the metro, including Twitter Inc., Goldman Sachs and the National Security Agency. ▪ Tourism will remain a top employment generator over the coming years. The metro is home to several world-class ski resorts, including Brighton, Park City, Alta and Snowbird. The Salt Palace Convention Center and the Energy Solutions Arena host conventions and trade shows.

MAJOR AREA EMPLOYERS

Intermountain Health Care University of Utah State of Utah Delta Airlines Corp. Zions Bancorporation Novus Technologies Cordant Technologies Smith’s Food and Drug Wells Fargo Bank * Forecast Salt Lake City Community College

SHARE OF 2016 TOTAL EMPLOYMENT

8% 18% 15% 8% 8% MANUFACTURING PROFESSIONAL AND GOVERNMENT LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES BUSINESS SERVICES

20% 5% + 12% 3% 3% TRADE, TRANSPORTATION CONSTRUCTION EDUCATION AND INFORMATION OTHER SERVICES AND UTILITIES HEALTH SERVICES

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MARKET OVERVIEW

DEMOGRAPHICS

▪ The metro is expected to add nearly 70,000 people through 2021, resulting in the formation of roughly 20,000 households. SPORTS ▪ Median incomes above the national average allow 66 percent of households to afford to own a home, compared with the national rate of 64 percent. ▪ Roughly 30 percent of people age 25 and older hold bachelor’s degrees; of those residents, 10 percent also have obtained a graduate or professional degree.

2016 Population by Age

8% 23% 7% 31% 21% 10% 0-4 YEARS 5-19 YEARS 20-24 YEARS 25-44 YEARS 45-64 YEARS 65+ YEARS EDUCATION

2016 2016 2016 2016 MEDIAN POPULATION: HOUSEHOLDS: MEDIAN AGE: HOUSEHOLD INCOME: 1.2M 392K 32 $64,300 Growth Growth U.S. Median: U.S. Median: 2016-2021*: 2016-2021*: 5.7% 5.8% 37.7 $54,500

QUALITY OF LIFE The Wasatch Range provides a multitude of year-round recreational opportunities, including ski resorts and more than a dozen national parks and monuments. Cultural venues include Abravanel Hall, the Rose Wagner Performing Arts Center, Hale Centre ARTS & ENTERTAINMENT Theatre and the Off Broadway Theatre. Salt Lake City’s major educational institution is the University of Utah, which also contains a medical school. The university is known for its technology transfer program that moves state-of-the-art research into useful applications in the business world. There are 10 other colleges and universities in the metro. In addition, two other major educational institutions are located just outside of Salt Lake City: Brigham Young University in Provo and Utah State University in Logan.

* Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau

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MARKET OVERVIEW SALT LAKE CITY METRO AREA

Salt Lake City’s Dynamic Economy Bolsters Retail Market Retail 2017 Outlook Vibrant employment market boosts household formation and drives retail sales. More than five years of robust job gains in the metro are fueling population growth in Completions will decline from last year’s excess of the national pace. The addition of many higher-paying tech positions is also four-year peak. The Central Valley East helping to drive wage gains well above the U.S. level, providing households with submarket will receive the largest portion of more discretionary income. As a result, average retail sales jumped 3.9 percent last new inventory. year, spurring retailer expansions. New residential developments are underway to house the population influx, generating sales at necessity-based retailers as well as furniture stores, home improvement stores and outlets providing household goods. A slower delivery pace and strong demand for prime vacant space will result in the Retail centers expand to fill growing demand. New home construction is vacancy rate decreasing to 4.4 percent generating the need for more retail options. In areas of sizable population growth, during 2017. such as Midvale or South Jordan, shopping centers that debuted in 2016, including Riverwalk and Trail Crossing, continue to expand. Older centers are also making alterations to meet consumers’ changing tastes. The Shops at South Town in Sandy Asking rents will jump to $16.10 per square foot in 2017, building on the 9.7 percent and Fashion Place Mall in Murray are expanding this year. The added traffic at these surge registered one year earlier. centers should benefit retailers nearby.

Investment Trends • Salt Lake City’s strong economy and favorable demographic trends are drawing investors to the metro. Single-tenant assets will be the focus of many buyers seeking to invest in this growing market. Heightened competition for available buildings may motivate some buyers to consider multi-tenant properties. Buildings with fewer than five tenants in grocery- anchored centers will trade at cap rates starting in the 6 percent range. • Strong household growth and new retail inventory will draw some investors to suburban areas such as Draper and Midvale. Well-located single-tenant buildings can begin trading at cap rates in the 5 percent span. • Owners who are considering marketing their properties may find this an opportune time to list while buyers are plentiful. Competition for available properties will require buyers to make strong first offers, especially on properties in desired locations with credit tenants. * Trailing 12 months through 1Q Sources: CoStar Group, Inc.; Real Capital Analytics

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MARKET OVERVIEW SALT LAKE CITY METRO AREA

EMPLOYMENT CONSTRUCTION VACANCY RENTS

* Forecast

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MARKET OVERVIEW SALT LAKE CITY METRO AREA

Demographic Highlights Submarket Trends

2017 JOB FIVE-YEAR FIVE-YEAR Lowest Vacancy Rates 1Q17 GROWTH POPULATION HOUSEHOLD GROWTH* GROWTH* Metro 3.4% U.S. Average 1.4% 189,200 72,000 Y-O-Y Asking Y-O-Y% Submarket Vacancy BasisPoint Rate Rent Change 1Q17 MEDIAN 1Q17 RETAIL SALES PER MONTH RETAIL SALES Change HOUSEHOLD FORECAST* INCOME $4,939 Per Household U.S. $3,785 Metro 30.6% Metro $69,695 U.S. 21.1% Morgan County 0.7% 0 $11.11 1.7% U.S. Average $58,218 $1,585 Per Person U.S. $1,454 *2017-2022 Utah County 2.3% -50 $13.32 -6.4%

Sales Trends East Valley 2.4% -30 $17.55 22.0%

South Valley 2.9% -10 $14.53 9.8% • Multi-Tenant: Transactions rose slightly year over year in March as local investors became more active. Assets in the South Valley submarket were most sought after. Summit County 3.6% 80 $24.61 -2.8% • Single-Tenant: Sales velocity increased over the last four quarters behind more deals by out-of-state buyers. Fast-food locations sold at an average of $600 per square foot. Central Valley East 4.2% -10 $12.74 3.2%

CBD 4.8% 190 $18.72 19.5%

Tooele County 5.2% -210 $12.79 0.2%

West Valley 5.6% 350 $20.33 32.4%

Davis and Weber 5.9% 20 $13.15 9.4% Counties

Overall Metro 4.6% 40 $14.97 7.6%

** Trailing 12 months through 1Q17 Pricing trend sources: CoStar Group, Inc.; Real Capital Analytics

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MARKET OVERVIEW SALT LAKE CITY METRO AREA

Capital Markets •

•

* Forecast Sources: CoStar Group, Inc.; Real Capital Analytics

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MARKETINGDEMOGRAPHICS TEAM Created on October 2017

POPULATION 1 Miles 3 Miles 5 Miles HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 Miles Total Average Household Retail ▪ 2021 Projection $74,824 $75,257 $77,176 Expenditure Total Population 21,006 132,309 331,368 ▪ Consumer Expenditure Top 10 ▪ 2016 Estimate Categories Total Population 20,544 130,094 323,288 Housing $17,670 $17,895 $18,124 ▪ 2010 Census Transportation $12,827 $13,027 $13,570 Total Population 18,887 120,079 301,845 Shelter $10,126 $10,183 $10,221 ▪ 2000 Census Food $6,834 $6,946 $7,069 Total Population 17,890 119,326 297,637 Personal Insurance and Pensions $6,263 $6,224 $6,625 ▪ Current Daytime Population Health Care $5,763 $5,998 $6,251 2016 Estimate 22,334 146,742 334,015 Cash Contributions $4,910 $4,956 $5,242 HOUSEHOLDS 1 Miles 3 Miles 5 Miles Entertainment $3,914 $3,851 $3,944 ▪ 2021 Projection Utilities $3,834 $3,892 $4,009 Household Furnishings and $2,037 $2,087 $2,153 Total Households 8,179 50,053 120,187 Equipment ▪ 2016 Estimate POPULATION PROFILE 1 Miles 3 Miles 5 Miles Total Households 7,925 48,733 116,207 ▪ Population By Age Average (Mean) Household Size 2.60 2.67 2.77 2016 Estimate Total Population 20,544 130,094 323,288 ▪ 2010 Census Under 20 27.03% 26.24% 27.17% Total Households 7,208 44,426 107,316 20 to 34 Years 26.36% 24.40% 22.89% ▪ 2000 Census 35 to 39 Years 7.71% 7.14% 6.72% Total Households 6,477 41,567 98,817 40 to 49 Years 12.05% 11.36% 11.68% ▪ Occupied Units 50 to 64 Years 15.84% 17.24% 18.63% 2021 Projection 8,179 50,053 120,187 Age 65+ 11.02% 13.65% 12.92% 2016 Estimate 8,095 49,830 118,930 Median Age 33.21 34.61 34.96 HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles ▪ Population 25+ by Education Level ▪ 2016 Estimate 2016 Estimate Population Age 25+ 13,579 86,738 212,667 $150,000 or More 5.48% 7.39% 9.17% Elementary (0-8) 1.77% 1.97% 1.38% $100,000 - $149,000 15.77% 16.05% 17.11% Some High School (9-11) 4.18% 5.67% 5.05% $75,000 - $99,999 14.60% 15.59% 16.00% High School Graduate (12) 25.40% 23.62% 22.77% $50,000 - $74,999 23.93% 21.60% 20.67% Some College (13-15) 30.25% 26.68% 27.80% $35,000 - $49,999 15.78% 14.03% 12.75% Associate Degree Only 8.47% 8.62% 8.51% Under $35,000 22.96% 23.62% 21.98% Bachelors Degree Only 19.43% 22.68% 22.96% Average Household Income $75,273 $83,000 $90,204 Graduate Degree 7.64% 9.68% 10.74% Median Household Income $61,018 $63,644 $67,976 Per Capita Income $29,058 $31,136 $32,472

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MARKETINGDEMOGRAPHICS TEAM

Population Race and Ethnicity In 2016, the population in your selected geography is 20,544. The The current year racial makeup of your selected area is as follows: population has changed by 14.84% since 2000. It is estimated that 83.34% White, 1.52% Black, 0.74% Native American and 4.02% the population in your area will be 21,006.00 five years from now, Asian/Pacific Islander. Compare these to US averages which are: which represents a change of 2.25% from the current year. The 70.77% White, 12.80% Black, 0.19% Native American and 5.36% current population is 48.61% male and 51.39% female. The median Asian/Pacific Islander. People of Hispanic origin are counted age of the population in your area is 33.21, compare this to the US independently of race. average which is 37.68. The population density in your area is 6,528.63 people per square mile. People of Hispanic origin make up 12.84% of the current year population in your selected area. Compare this to the US average of 17.65%.

Households Housing There are currently 7,925 households in your selected geography. The The median housing value in your area was $244,143 in 2016, number of households has changed by 22.36% since 2000. It is compare this to the US average of $187,181. In 2000, there were estimated that the number of households in your area will be 8,179 4,061 owner occupied housing units in your area and there were five years from now, which represents a change of 3.21% from the 2,416 renter occupied housing units in your area. The median rent at current year. The average household size in your area is 2.60 persons. the time was $652.

Income Employment In 2016, the median household income for your selected geography is In 2016, there are 6,572 employees in your selected area, this is also $61,018, compare this to the US average which is currently $54,505. known as the daytime population. The 2000 Census revealed that The median household income for your area has changed by 29.05% 67.62% of employees are employed in white-collar occupations in since 2000. It is estimated that the median household income in your this geography, and 32.97% are employed in blue-collar occupations. area will be $73,311 five years from now, which represents a change In 2016, unemployment in this area is 3.59%. In 2000, the average of 20.15% from the current year. time traveled to work was 22.00 minutes.

The current year per capita income in your area is $29,058, compare this to the US average, which is $29,962. The current year average household income in your area is $75,273, compare this to the US average which is $78,425.

23 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 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. Â© 2017 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.

SANDY POINTE SHOPPING CENTER Sandy, UT ACT ID Y0200329