BRICE PARK 2640-2800 Brice Rd

OFFERING MEMORANDUM BRICE PARK 2640-2800 Brice Rd

Reynoldsburg, OH 43068 ™ OFFERING MEMORANDUM

EXCLUSIVELY LISTED BY

BEN SNYDER ZACK BATES SVP & Senior Director Associate Vice President Direct +1 216.503.3607 Direct +1 216.503.3608 Mobile +1 614.975.8822 Mobile +1 972.998.7373 [email protected] [email protected] License No. 2018002569 (OH) License No. 2018002393 (OH) BROKER OF RECORD LAURENCE BERGMAN License No. 000348029 (OH)

2 TABLE OF CONTENTS

3 SECTION I EXECUTIVE OVERVIEW

4 EXECUTIVE SUMMARY PROPERTY NAME Brice Park THE OFFERING

Matthews is pleased to present the outstanding opportunity to acquire the OCCUPANCY fee simple interest in Brice Park, a high-quality shopping center containing 88.1% 158,565 square feet of owned GLA located in Reynoldsburg, Ohio, within the Columbus metro area (the “Property” or “Offering”). The Property, which is currently 88% leased, features a strong lineup of national retailers GLA including Ashley Furniture, Michaels, Family Dollar, Dollar Tree and more. ±158,565 This rare offering represents a critical mass of credit and national tenancy, complemented by a unique mix of regional and local retailers.

The Offering allows an investor the opportunity to acquire a value-add MSA shopping center in a growing market. This outstanding investment opportunity Columbus, Ohio is being offered free and clear of existing financing. All inquiries should be directed to Matthews. ANCHORS Ashley Furniture, Michaels, Family Dollar, Dollar Tree

5 OFFERING CAP NET OPERATING PRICE RATE INCOME (YEAR 1) $11,825,000 9.00% $1,063,823

INVESTMENT HIGHLIGHTS

»» National Tenancy: Brice Park is currently 88% leased to a high quality roster of »» Recent Leasing Momentum: The Property is experiencing compelling leasing national tenants including Ashley Furniture, Michaels, Family Dollar, and Dollar momentum with over 92,000 square feet of leasing activity since 2017, including Tree. Approximately 90% of the Property’s leased square footage and 87% of its the addition of four new tenants totaling 21,267 square feet and the renewal of six base rental revenue is derived from national tenants. existing tenants totaling 70,900 square feet.

»» High Growth Market: The Property is located in one of the fastest growing cities in »» Densely Populated Trade Area: Brice Park is located just 10 miles east of the the country. From 2016 to 2017, the population in Columbus grew by more than Columbus CBD and benefits from a densely populated trade area with over 15,000 people, which was the 8th largest population increase in the U.S. over that 100,000 people within a three-mile radius, and over 226,000 people within a time period. While most cities in Ohio and the Midwest have been losing people five-mile radius. There are more residents estimated within a ten minute drive time since the 1960s, Columbus’s population has exploded. From 1960 to 2017, the of the Brice Rd/I-70 interchange than the interchanges at Polaris Parkway, Sawmill city’s population nearly doubled from 471,316 to 879,170. Columbus is currently Road, and Stringtown Road. the 14th largest city in the country. »» High-Traffic Location: Brice Park benefits from a high-traffic location at the »» Value-Add Opportunity: Brice Park offers a new investor the rare opportunity intersection of Brice Rd and Tussing Rd, which is one of the busiest intersections in to improve an existing shopping center located in a dense and established the trade area with traffic counts of more than 61,000 vehicles per day. trade area. With over 22,000 square feet of new leasing activity in the last 24 » months, including the addition of Dollar Tree and City Gear, a new investor has » Convenient Access & Visibility: The Property is accessed from five points of an opportunity to capitalize off this recent leasing momentum and lease up the ingress/egress including two signalized entrances along Brice Rd, providing remaining vacancy, including two vacant outparcels. customers with convenient access. » Offered free and clear of any existing financing, a new »» Seasoned Tenant Roster: The stability of the Property is evidenced by the tenure of » Unencumbered Offering: the tenants. There are 5 tenants totaling over 38,000 square feet of GLA (nearly investor can take advantage of historically low interest rates and ample availability 25% of the total GLA), including Michaels, that are original tenants with a weighted in the capital markets to significantly enhance returns through aggressive average tenure of over 25 years. capitalization structures.

6 SUMMARY PROFILE

BRICE PARK 17 158,565 88.1% Reynoldsburg, Ohio Tenants Square Feet Occupied

1988 4.3 Years 5.56% Construction Avg. Remaining Term 10-Year CAGR

REGIONAL MAP

SUBJECT PROPERTY

7 TENANT SUMMARY

Base Rent Annual Base % of Annual 2017 Sales Lease Remaining Tenant GLA (SF) % of GLA PSF Rent Base Rent PSF Expiration Options

Ashley Furniture1 & 2 30,000 18.9% $7.00 $210,000 17.5% $174 Jul-21 None

Michaels3 17,800 11.2% $4.75 $84,550 7.0% - Feb-24 3, 5-year

Family Dollar 15,426 9.7% $6.53 $100,688 8.4% - Jun-22 1, 5-year

Octapharma 10,800 6.8% $10.00 $108,000 9.0% - Nov-26 3, 5-year

Citi Trends4 9,949 6.3% $6.03 $59,992 5.0% $106 Aug-21 2, 5-year

Dollar Tree5 9,500 6.0% $10.00 $95,000 7.9% - May-28 4, 5-year

Anchors Total 93,475 59.0% $7.04 $658,231 54.9% - - -

Shops 34,767 21.9% $12.46 $433,151 36.1% $247 - -

Vacant 18,823 11.9% ------

Pads 11,500 7.3% $9.39 $107,989 9.0% - - -

Totals 158,565 100.0% $7.56 $1,199,370 100.0% - -

1 Per the Ashley Furniture lease, either Landlord or Tenant have the right to terminate the lease by written notice given to the other at any time after 7/31/2019. The termination date can be no earlier than 180 days after the date of the termination notice.

2Per the Ashley Furniture lease, tenant pays percentage rent on three percent (3%) of Gross Sales in excess of $3,600,000 ($120 PSF) per Lease Year. Ashley Furniture’s sales are very strong at over $5.2 million in 2017, which was an increase of 18.2% over their sales in 2016. We have modeled percentage rent in the amount of $48,876 in Year 1 based off of their 2017 sales.

3 Per the Michaels lease, Tenant has an annual right to terminate the lease. The written termination notice must be provided by July 31 for a termination as of January 31 of the following calendar year.

4 The sales figure represents the trailing 12 months sales as of August 2016, which is the last time Citi Trends reported sales. They are not required to report.

5Per the Dollar Tree lease, Tenant has the right to terminate the lease in the event Gross Sales from the Premises aggregate less than the $1,550,000 during the period from the 1st day of the 49th full month of the Lease Term through the last day of the 60th full calendar month of the Lease Term, without penalty. Tenant must provide Landlord with written notice of termination no later than ninety (90) days after the last day of the Sales Measurement Period. 8 ASSET OVERVIEW OCCUPANCY

12% 10% 9% Name Brice Park

Address 2640-2800 Brice Rd Occupied Totals - In Place 50% City, State Reynoldsburg, OH Vacant Totals 530-214867-00 530-214869-00 41% APN 530-166434-00 88% 90% 530-220069-00 0% 530-215421-00 TENANT BREAKDOWN Land Area 17.253 Acres / 751,541 SF

Year Built 1988 12% 10% 9%

Property Type Community Center National/Credit Net Rentable Area ±158,565 50% Local/Regional Total Tenants 17 41% Current Occupancy 88.1% 88% 90% 0% Average Remaining Term 4.3 Years RENT BREAKDOWN

VALUATION 12% 10% 9%

Price $11,825,000 Anchor PAD 55% Price Per Foot $74.58 Shops 36% NOI $1,063,823

Cap Rate 9.00%88% 90%

9 SECTION II PROPERTY OVERVIEW

10 PROPERTY OVERVIEW PROPERTY DESCRIPTION

OVERVIEW PROPERTY NAME ADDRESS Brice Park was originally developed in 1988. The Property totals 158,565 Brice Park 2640-2800 Brice Rd square feet and is 88% leased to a strong and diverse tenant roster led by Ashley Furniture, Michaels, Family Dollar, and Dollar Tree. The Property is comprised of one single-story inline retail building totaling GLA LOCATION 105,065 square feet, one freestanding single-story building totaling 30,000 square feet occupied by Ashley Furniture, and four, single- ±158,565 SF Reynoldsburg, OH 43068 story outparcel buildings totaling 23,500 square feet. The freestanding outparcel building occupied by Arby’s is separately LAND AREA OCCUPANCY owned and not a part of this offering. ±17.253 Acres 88.1% Leased

LOCATION Brice Park is located in eastern Franklin County, just west of the Fairfield PARKING TRAFFIC COUNTS County line and Pickerington city limits and 10 miles east of the 822 Spaces Columbus CBD. The Property is on the hard corner of Brice Road, a Brice Rd: ±45,000 ADT major north-south thoroughfare with an I-70 interchange ±1 mile north of the Property, and Tussing Road. ZONING C4 - General Commercial Tussing Rd: ±19,000 ADT ACCESS The main entrances along Brice Road are controlled by a traffic signal, allowing for full access to and from the Property. The intersection of Brice Road and Tussing Road is controlled by a traffic signal. The Property is accessible via three entrances along Brice Road and two entrances along Tussing Road. Two of the entrances along Brice Road are accessible via both left and right turn-in. The other entrances are accessible via right turn-in only. Three of the five entrances are right turn-out only.

11 SITE SIZE GROSS LEASABLE AREAS

Property Size (Acres) Property GLA (SF)

Brice Park ±14.439 Brice Park 135,065

Outparcel FS1 (Vacant) ±0.598 Outparcel FS1 (Vacant) 6,000

Bridgestone/Firestone ±0.649 Bridgestone/Firestone 7,000

Outparcel FS3 (Vacant) ±1.083 Outparcel FS3 (Vacant) 6,000

Payless Shoesource ±0.484 Payless Shoesource 4,500

Total ±17.253 Total 158,565

REAL ESTATE TAXES

The Property is comprised of five tax parcels. In Franklin County, 1st half tax bills are mailed each year in mid-December with the payment due on or before January 20th (or the first following business day if the 20th falls on a weekend or holiday). The 2nd half tax bills are mailed each year in mid-May with payment due on or before June 20th (or the first following business day if the 20th falls on a weekend or holiday). Please note that the Franklin County Treasurer’s Office collects real estate taxes for the previous year during the current year. This is also known as “payment arrears.” For example, taxes collected in 2018 represent the real estate tax obligations from 2017. Below is a summary of the assessed values and real estate taxes for the Property for 2017.

Parcel ID Market Value Assessed Value Effective Tax Rate Net Taxes

530-166434-00 $7,410,000 $2,593,500 71.88% $186,417

530-220069-00 $690,000 $241,500 71.88% $17,359

530-214867-00 $620,000 $217,000 71.88% $15,598

530-214869-00 $1,020,000 $357,000 71.88% $25,661

530-215421-00 $430,000 $150,500 71.88% $10,818

Total $10,170,000 $3,559,500 $255,851

12 PARCEL MAP

1 530-166434-00

2 530-220069-00

2 3 1 4 3 530-214867-00 5

4 530-214869-00

5 530-215421-00

13 IMPROVEMENTS

The buildings were constructed on concrete masonry unit foundations with concrete slabs-on-grade Structure The structural framing consists of steel columns and girders, open-web steel joist roof framing, corrugated metal roof decks, and concrete masonry unit exterior walls.

The buildings are clad with jumbo brick with exterior insulated finishing system (EIFS) trim on the Exterior Finishes front exterior walls and with painted concrete masonry unit (CMU) walls on the back side.

Interiors are finished with typical materials found in retail and service businesses. Each tenant’s space displays a different finish, depending on design and use. Most spaces have either acoustical Interior Detail tile drop ceilings or exposed structure ceilings painted gypsum board walls, resilient tile flooring, and carpet flooring. , The existing roof system over Brice Park is a Ballasted 45 Mil EPDM installed over a painted steel roof deck. The existing roof system over the Ashley Furniture building is a Mechanically Attached 45 Mil EPDM installed over a painted steel roof deck The existing roof system over Payless Shoesource is a 3 Ply Asphalt BUR with Gravel installed over a painted steel roof deck. The existing roof system Roof over Outparcel FS1 (Vacant) is a Mechanically Attached 45 Mil Reinforced EPDM installed over a galvanized steel roof deck. The existing roof system over Outparcel FS3 (Vacant) is a 4 Ply Asphalt BUR with Gravel installed over a painted steel roof deck. All roofs are believed to be originally with minimal useful life remaining.

Retail spaces are independently heated and cooled with rooftop units (RTUs). Each tenant is provided HVAC with at least one unit. The RTUs are manufactured by Carrier and Lennox and vary in size.

14 ROOF SUMMARY

Building Size (SF) Roof Type Year Installed Warranty

1 105,065 Ballasted EPDM 1988 None

2 30,000 Mechanically Attached EPDM 1988 None

3 6,000 Mechanically Attached EPDM 1988 None

4 7,000 Unknown 1988 None

5 6,000 Asphalt BUR 1988 None

6 4,500 Asphalt BUR 1988 None

1 2

3 4 5 6

15 SECTION III TENANCY OVERVIEW

16 SITE PLAN

17 16 14 15 KEY 13 13A 01 11 02 12 03 Occupied 7/8 08

04 05 06 D R E I C R Vacant B

1 F S

2 F S

FS3 FS4

C H A N T R D R B R I C E Y

D R Suite Tenant Square Feet Suite Tenant Square Feet Suite Tenant Square Feet Brice Tobacco and 1 Convenience 2,700 8 Dollar Tree 9,500 16 Michaels 17,800 Ashley Furniture 2 Subway 900 11 Citi Trends 9,949 17 Homestore 30,000

3 Aida’s Salon 1,200 12 City Gear 4,324 FS1 Vacant 6,000

4 ImmediaDent 3,000 13 Lumber Liquidators 7,200 FS2 Bridgestone/Firestone 7,000

5 Vacant 6,823 13 A Octapharma 10,800 FS3 Vacant 6,000

6 FedEx Office 8,000 14 Family Dollar 15,426 FS4 Payless Shoe Source 4,500

7/8 Creative Minds Academy 2,500 15 Hip Hop Fitness 4,943 Total 20 Suites 158,565

17 RENT ROLL

Lease Lease Square % of Contract Rental Rate Rent $ PSF Recovery Expiration Suite Tenant Options Assigned MLA Start End Feet GLA Year Month $ PSF/Yr. $ PSF/Mo. Structure Assumption Brice Tobacco and Current $1,688 $7.50 $0.63 NNN + MF+ 1 Aug-14 Sep-24 2,700 1.7% $20,250 1x5: (1) $9.77 PSF. $16.00 PSF Option Convenience Oct-19 $1,913 $8.50 $0.71 15% CAM 2 Subway1 Jan-94 Dec-23 900 0.6% Current $18,747 $1,562 $20.83 $1.74 NNN $21.00 PSF Market Current $10,800 $900 $9.00 $0.75 3 Aida's Salon Apr-17 Apr-20 1,200 0.8% NNN $20.00 PSF Market May-19 $12,000 $1,000 $10.00 $0.83 4 ImmediaDent Aug-05 Jul-20 3,000 1.9% Current $61,500 $5,125 $20.50 $1.71 NNN $21.00 PSF Market Lease-up @ 5 Vacant - - 6,823 4.3% $0 $0 $0.00 $0.00 - $14.00 PSF MLA (9/1/19) 6 FedEx Office1 Oct-93 Sep-21 8,000 5.0% Current $104,000 $8,667 $13.00 $1.08 NNN $14.00 PSF Market Current $37,500 $3,125 $15.00 $1.25 Sep-19 $37,875 $3,156 $15.15 $1.26 Creative Minds NNN + MF 7/8 Sep-18 Sep-23 2,500 1.6% Sep-20 $38,253.75 $3,188 $15.30 $1.28 $16.00 PSF Market Academy + 10% CAM Sep-21 $38,636.29 $3,220 $15.45 $1.29 Sep-22 $39,022.65 $3,252 $15.61 $1.30 May- Current $95,000 $7,917 $10.00 $0.83 3x5: (1) $11.00 PSF. (2) $11.50 8 Dollar Tree May-18 9,500 6.0% NNN $10.00 PSF Option 28 Jun-23 $99,750 $8,313 $10.50 $0.88 PSF. (3) $12.50 PSF. Current $59,992 $4,999 $6.03 $0.50 11 Citi Trends Sep-11 Aug-21 9,949 6.3% Gross 2x5: (1) $7.87 PSF. (2) $8.65 PSF. $10.00 PSF Option Sep-19 $62,479.72 $5,207 $6.28 $0.52 Current $64,860 $5,405 $15.00 $1.25 NNN + MF 12 City Gear Oct-18 Sep-25 4,324 2.7% Oct-20 $66,805.80 $5,567 $15.45 $1.29 1x5: (1) $17.16 PSF. $16.00 PSF Option + 20% Oct-23 $67,454.40 $5,621 $15.60 $1.30 13 Lumber Liquidators1 Jul-14 Jul-24 7,200 4.5% Current $84,600 $7,050 $11.75 $0.98 NNN 1x5: (1) $12.75 PSF. $14.00 PSF Option Current $108,000 $9,000 $10.00 $0.83 NNN + MF+ 2x5: (1) $12.38 PSF. (2) $13.92 13A Octapharma Nov-16 Nov-26 10,800 6.8% $10.00 PSF Option Dec-21 $118,800 $9,900 $11.00 $0.92 10% CAM PSF. NNN + 15% 14 Family Dollar Nov-10 Jun-22 15,426 9.7% Current $100,688 $8,391 $6.53 $0.54 1x5: (1) $7.18 PSF. $10.00 PSF Option CAM 15 Hip Hop Fitness Jul-17 Jul-19 4,943 3.1% Current $30,894 $2,574 $6.25 $0.52 Gross $16.00 PSF Market 3x5: (1) $7.00 PSF. (2) $7.50 PSF. 16 Michaels1 Nov-92 Feb-24 17,800 11.2% Current $84,550 $7,046 $4.75 $0.40 NNN $8.00 PSF Option (3) $8.00 PSF Ashley Furniture 17 Jul-07 Jul-21 30,000 18.9% Current $210,000 $17,500 $7.00 $0.58 Gross $8.00 PSF Market Homestore Lease-up @ FS1 Vacant - - 6,000 3.8% $0 $0 $0.00 $0.00 - $75K Annual MLA (1/1/20) FS2 Bridgestone/Firestone1 Jul-94 Mar-22 7,000 4.4% Current $47,989 $3,999 $6.86 $0.57 RET 1x5: (1) $7.54 PSF. $75K Annual Option Lease-up @ FS3 Vacant - - 6,000 3.8% $0 $0 $0.00 $0.00 - $75K Annual MLA (9/1/20) FS4 Payless Shoe Source Feb-94 Dec-19 4,500 2.8% Current $60,000 $5,000 $13.33 $1.11 Gross $75K Annual Market Occupied Totals - In Place 139,742 88.1% $1,199,370 $99,947 $8.58 $0.72 Vacant Totals 18,823 11.9% $0 $0 $0.00 $0.00 Totals 158,565 100.0% $1,199,370 $99,947 $7.56 $0.63 18 1Renewal with this tenant is being finalized. The terms shown assume that the pending renewal gets completed. Year Square % of Cumulative TENANT EXPIRATION SCHEDULE Year End Feet GLA % 1 2019 9,443 6% 6% 50,000 47,949 2 2020 4,200 3% 9% 45,000 100% 3 2021 47,949 30% 39% 40,000 90% 4 2022 22,426 14% 53% 35,000 80%

T 5 2023 3,400 2% 55% 70% 30,000 27,700 6 2024 27,700 17% 73% 60% 25,000 7 2025 4,324 3% 75% ARE FEE 22,426 50% 20,000 40% 8 2026 10,800 7% 82% 15,000 TIVE % OF GLA 9 2027 0 0% 82% 10,800 30% 10,000 9,443 9,500 20% 10 2028 9,500 6% 88% 4,200 4,324 5,000 10% CUMULA 11 2029 0 0% 88% EXPIRING SQU 3,400 0 0 0 0% Occupied 139,742 88% 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Vacant 18,823 12% YEAR Total 158,565 100%

OCCUPANCY COST ANALYSIS

2017 Gross Tenant Tenant Base Reimbursements Percentage Occupancy Occupancy Suite Annual Sales PSF Name SF Rent Rent Cost Cost % CAM RE Tax Insurance Sales Ashley Furniture 17 30,000 $210,000 $0 $0 $0 $0 $5,229,186 $174 PSF $210,000 4.02% Homestore1

11 Citi Trends2 9,949 $59,992 $0 $0 $0 $0 $1,052,833 $106 PSF $59,992 5.70%

2 Subway 900 $18,747 $1,797 $1,446 $214 $0 $222,488 $247 PSF $22,204 9.98%

40,849 Total $288,739 $1,797 $1,446 $214 $0 $6,504,507 $159 PSF $292,196 4.49% SF

1Ashley Furniture starts paying Percentage Rent for the lease year beginning 8/1/18. 2Citi Trends sales are T12 from 9/2015 - 8/2016.

19 ASHLEY FURNITURE HOMESTORE

TENANT OVERVIEW

Ashley HomeStore is an American furniture store chain that sells Ashley Furniture products. Opened in 1997, the chain comprises over 800 locations worldwide.The chain has both corporate and independently owned and operated furniture stores. The first Ashley HomeStore opened in Anchorage, Alaska in 1997. Since then, the company has become the #1 home furniture retailer in North America. Though many Ashley HomeStores are independently owned and operated, all of the furniture sold is manufactured by Ashley.

Parent Company Trade Name Ashley Furniture Industries GEOGRAPHIC OUTREACH Industry Furnishings, Franchising Ashley Furniture has stores located throughout the United States, Canada, Mexico, Central America, Japan, Kazakhstan and Singapore. The 100th HomeStore store opened in 2003, the No. of Locations ± 800 200th in 2005. No. of Employees ± 4,300 It became the fastest-growing furniture chain and top selling furniture brand worldwide in 2006 Headquartered Brandon, Florida and open its 300th store in 2007. In April 2015, Ashley HomeStore made its first incursion in Website www.ashleyfurniture.com South America by opening its first store in Santiago, Chile. Year Founded 1997

MICHAELS TENANT OVERVIEW

Michaels Stores, Inc., doing business as Michaels, is the largest American arts and crafts retail chain. In addition, Michaels produces 10 exclusive private brands including Recollections, Studio Decor, Bead Landing, Creatology, Ashland, Celebrate It, Art Minds, Artist’s Loft, Craft Smart, and Loops & Threads. The corporate headquarters are located in Irving, Texas. The average Michaels store now contains 40,000 different products in 18,200 square feet (1,700 m²) of selling space. The stores sell arts, crafts, framing, floral, wall décor, bakeware, beads, scrapbooking and seasonal merchandise for hobbyists and do-it-yourself home decorators. Michaels is the largest such arts and crafts chain in the United States, while competitors include Parent Company Trade Name Michaels Stores, Inc. (NYSE: MIK) Hobby Lobby, Ben Franklin, Jo-Ann Stores, A.C. Moore and several smaller chains. Canadian competitors include DeSerres. Ownership Public No. of Locations ± 1,367 GEOGRAPHIC OUTREACH No. of Employees ± 31,000 Michaels currently operates more than 1,262 stores (consisting of 1,145 Michaels stores in 49 US Headquartered Irving, Texas states and Canada, 118 Aaron Brothers stores and 34 Pat Catan’s stores) as of May 31, 2014. Website www.michaels.com Year Founded 1973

20 FAMILY DOLLAR

TENANT OVERVIEW

When it comes to getting value for everyday items for the entire family in an easy to shop, neighborhood location, Family Dollar is the best place to go. One of the nation’s fastest growing retailers, Family Dollar offers a compelling assortment of merchandise for the whole family ranging from household cleaners to name brand foods, from health and beauty aids to toys, from apparel for every age to home fashions, all for everyday low prices. While shoppers can find many items at $1 or less, most items in the store are priced below $10, which makes shopping fun without stretching the family budget. Parent Company Trade Name Dollar Tree, Inc. (NASDAQ: DLTR) GEOGRAPHIC OUTREACH Ownership Public Family Dollar serves families in more than 8,000 neighborhoods in 46 states. Texas is its largest market with 1,027 stores, followed by Florida with 584 stores. The Dollar Tree merger with Family No. of Locations ± 8,000 Dollar now creates a combined organization with sales exceeding $19 billion annually with more No. of Employees ± 60,000 than 13,600 stores across 48 states and five Canadian Provinces. The merger has allowed Family Headquartered Matthews, North Carolina Dollar to grow offering broader, more compelling merchandise assortments, with greater values, to a wider array of customers. Website www.familydollar.com Year Founded 1986

OCTAPHARMA TENANT OVERVIEW

Octapharma AG, founded in 1983, is a family-owned pharmaceutical company, and bills itself as “one of the largest human protein manufacturers in the world, developing and producing human proteins from human plasma and human cell lines.

PRODUCTS Patients in 113 countries are treated with products in the following therapeutic areas: • Hematology: high-purity coagulation factor concentrates for patients with bleeding disorders Haemophilia A, B and von Willebrand Disease. Parent Company Trade Name Octapharma AG • Immunotherapy: immunomodulation or immunoglobulin replacement therapy for the Ownership Private treatment of immune-mediated diseases and deficiencies (immune disorders including No. of Locations ± 45 autoimmune diseases and antibody deficiency) by inducing, enhancing, or suppressing an Revenue 1.72 Billion (Euro) immune response. Headquartered Lachen, Swizerland • Critical Care: human plasma and protein products for treating critically ill or injured patients in intensive care and emergency medicine settings. Website www.octapharma.com Year Founded 1983

21 CITI TRENDS

TENANT OVERVIEW

Citi Trends is an American retail clothing chain. The company opened its first store in Savannah, Georgia in 1958 under the name Allied Department Stores. The company began renaming its stores Citi Trends in 2000, and officially became Citi Trends in 2001. On February 28, 2005, Citi Trends Inc. went public in an initial public offering of stock worth up to $57.5 million.

Parent Company Trade Name Citi Trends, Inc. (NASDAQ: CTRN) GEOGRAPHIC OUTREACH Ownership Public Citi Trends comprises more than 515 stores in 31 states. The chain is known for targeting urban, lower-income customers. Citi Trends has been in the apparel business for over 58 years. In May, Industry Retail 2005, Citi Trends had become a publicly traded company on the Nasdaq exchange with the symbol No. of Locations ± 515 CTRN. Headquartered Savannah, Georgia Website www.cititrends.com Year Founded 1958

DOLLAR TREE TENANT OVERVIEW

Dollar Tree locations carry a mix of housewares, toys, seasonal items, food, health and beauty aids, gifts, and books. At Dollar Tree shops most goods are priced at $1 or less while Family Dollar merchandise is usually less than $10. The stores are located in high-traffic strip centers and malls often in small towns. It purchased fellow discounter, Family Dollar in 2015, bolstering competitive position against Dollar General. The company wants to create a “treasure hunt” type environment where people can bring their whole families.

GEOGRAPHIC OUTREACH Parent Company Trade Name Dollar Tree, Inc. (NASDAQ: DLTR) Dollar Tree operates more than 14,000 Dollar Tree, Deal$, Dollar Bills, and Family Dollar discount Ownership Public stores in 48 US states and the District of Columbia and five provinces in Canada. No. of Locations ± 8,000 No. of Employees ± 60,000 STRATEGY Headquartered Matthews, North Carolina The Dollar Tree continues to offer customers products they need at extreme values while keeping their stores bright, clean, organized and stocked. The company carries a broad mix of merchandise Website www.familydollar.com that includes many trusted national and regional brands. Year Founded 1986

22 SECTION IV FINANCIAL OVERVIEW

23 OM CASH FLOW ASSUMPTIONS FINANCIAL ASSUMPTIONS

Timing Analysis Start 1/1/19 Analysis assumes an annual recurring capital reserve CapEx Analysis End 12/31/29 of $0.15 PSF of gross leasable area at the Property. Area Measures

Gross Leasable Area 158,565 SF Expenses are based off the Seller's 2018 2Q Re- forecast and grown at 3% for Year 1. RE Taxes are Inflation Expenses 2017 Actuals (Payable 2018) grown at 3% for Year 1 Market Rent Growth 3.0% (FY 2019). Expense Growth 3.0% Real Estate Tax Growth 3.0% Leasing Assumptions Management Fee Management Fee is 3% of Effective Gross Revenue. Market Rent ($ PSF) $8.00 - $21.00 Renewal Probability 70%

Downtime 9-12 months Analysis assumes there will be $4,200 of annual re- Tenant Improvement Allowance ($ PSF) $15.00 - 30.00 / $0 Ancillary Income curring ancillary income - OM Warehouse ($3,000/ year), Electrify America ($100/mo). Leasing Commissions 6% / 2% Free Rent None General Vacancy set at 5% of Potential Gross Rev- Rent Increases Pads increase 10% Yr 6 enue excluding Ashley Furniture, Michaels, Family General Vacancy Reimbursements NNN + MF + 10% Dollar, Dollar Tree, Bridgestone/Firestone, and Payless Shoe Source. Term 5-10 years

VACANCY LEASE UP Lease Leased Term Tenant Annual Annual Suite GLA (SF) Increases Recoveries Start End (Months) Improvements PSF Rent PSF Rent

5 6,823 9/1/19 8/31/24 60 mos - $15.00 NNN $14.00 $95,522

FS1 6,000 1/1/20 12/31/29 120 mos 10% Yr 6 $15.00 NNN $12.50 $75,000

FS3 6,000 9/1/20 8/31/30 120 mos 10% Yr 6 $15.00 NNN $12.50 $75,000

24 TENANT ASSUMPTIONS

Ashley Furniture Tenant rolls to market ($8.00 PSF NNN; $30.00 PSF TI) at expiration 7/31/21.

Subway Tenant rolls to market ($21.00 PSF) at expiration 12/31/23

Michaels Tenant renews flat ($4.75 PSF) through the remainder of the analysis period.

Tenant takes their five year option ($7.54 PSF) starting 4/1/22, then rolls to market ($75k annual, RET only) Bridgestone/Firestone: at expiration 3/31/27. Tenant takes their remaining renewal option ($12.75 PSF) then rolls to market ($14.00 PSF) at expiration Lumber Liquidators: 7/31/29.

Hip Hop Fitness: Tenant rolls to market at expiration ($16.00 PSF NNN) 7/31/19.

FedEx Office Tenant rolls to market ($14.00 PSF) at expiration 9/30/21.

Payless Shoe Source Tenant rolls to market ($75k annual, RET only) at expiration 12/31/19.

Aida’s Salon Tenant rolls to market ($20.00 PSF) at expiration 4/30/20.

ImmediaDent Tenant rolls to market ($21.00 PSF) at expiration 7/31/20.

Citi Trends Tenant takes their remaining options starting 9/1/21 taking them through the analysis period.

Family Dollar Tenant takes their option beginning 7/1/22 then rolls to market ($10.00 PSF) at expiration 6/30/27.

Creative Minds Academy Tenant rolls to market ($16.00 PSF) at expiration 9/30/23.

Brice Tobacco and Convenience Tenant takes their option beginning 10/1/24 then rolls to market ($16.00 PSF) at expiration 9/30/29.

City Gear Tenant takes their option beginning 10/1/25 taking them through the analysis period.

Octapharma Tenant takes their option beginning 12/1/26 taking them through the analysis period.

Dollar Tree Tenant takes their option beginning 6/1/28 taking them through the analysis period.

25 10-YEAR CASH FLOW

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11

Dec-2019 Dec-2020 Dec-2021 Dec-2022 Dec-2023 Dec-2024 Dec-2025 Dec-2026 Dec-2027 Dec-2028 Dec-2029

Scheduled Base Rent Per SF. Annual $10.42 $10.03 $10.67 $10.31 $10.42 $10.70 $10.99 $11.32 $13.41 $12.49 $13.06

Total Operating Expense Per SF. Annual ($3.23) ($3.37) ($3.36) ($3.49) ($3.59) ($3.69) ($3.81) ($3.91) ($4.01) ($4.18) ($4.29)

Average Occupancy 88.78% 96.11% 92.43% 100.00% 99.61% 98.26% 99.24% 98.27% 90.47% 100.00% 97.54%

GROSS REVENUE

Base Rental Revenue 1,467,402 1,529,104 1,564,129 1,634,294 1,645,217 1,667,723 1,728,879 1,764,627 1,923,534 1,980,842 2,020,408

Absorption/Turnover Vacancy (233,453) (93,215) (114,577) - (11,255) (48,442) (27,571) (31,054) (184,081) - (78,868)

Reimbursement Revenue 288,717 348,671 379,042 484,939 496,837 502,826 524,726 535,622 508,029 581,086 582,515

Gross Rental Income 1,522,666 1,784,560 1,828,594 2,119,233 2,130,799 2,122,107 2,226,034 2,269,195 2,247,482 2,561,928 2,524,055

General Vacancy - 5.00% - (9,493) (43,015) (60,125) (49,184) (35,415) (41,064) (60,786) (51,460) (69,213) (22,186)

Percentage Rent 48,876 53,582 34,084 ------

Other Income 4,200 4,326 4,456 4,589 4,728 4,869 5,015 5,166 5,320 5,480 5,645

Effective Gross Income 1,575,742 1,832,975 1,824,119 2,063,697 2,086,343 2,091,561 2,189,985 2,213,575 2,201,342 2,498,195 2,507,514

OPERATING EXPENSES PSF

Real Estate Taxes 1.66 263,545 271,451 279,595 287,982 296,623 305,521 314,687 324,128 333,850 343,867 354,182

Insurance 0.21 33,460 34,464 35,497 36,563 37,659 38,789 39,954 41,152 42,386 43,658 44,967

CAM 1.06 167,642 172,669 162,631 167,512 172,538 177,713 183,042 188,533 194,190 200,017 206,018

Management Fee 0.30 47,272 54,989 54,723 61,911 62,590 62,747 65,699 66,407 66,040 74,946 75,225

Total Operating Expenses (3.23) (511,919) (533,573) (532,446) (553,968) (569,410) (584,770) (603,382) (620,220) (636,466) (662,488) (680,392)

Per SF. Monthly ($0.27)

NET OPERATING INCOME $1,063,823 $1,299,402 $1,291,673 $1,509,729 $1,516,933 $1,506,791 $1,586,603 $1,593,355 $1,564,876 $1,835,707 $1,827,122

CAPITAL EXPENDITURES

Tenant Improvements 124,589 225,725 286,443 39,338 - 53,331 33,008 16,603 515,470 - 64,105

Leasing Commissions 41,311 136,959 40,739 19,582 - 28,643 19,695 12,397 137,196 - 34,340

Capital Reserves 23,785 24,498 25,233 25,990 26,770 27,573 28,400 29,252 30,130 31,034 31,965

Total Capital Expenditures (189,685) (387,182) (352,415) (84,910) (26,770) (109,547) (81,103) (58,252) (682,796) (31,034) (130,410)

NET CASH FLOW $874,138 $912,220 $939,258 $1,424,819 $1,490,163 $1,397,244 $1,505,500 $1,535,103 $882,080 $1,804,673 $1,696,712

Net Operating Income CAGR: -- 22.14% 10.19% 12.38% 9.28% 7.21% 6.89% 5.94% 4.94% 6.25% 5.56%

26 SECTION V AREA OVERVIEW

27 REYNOLDSBURG, OHIO Reynoldsburg is a city in Fairfield, Franklin, and Licking counties in Ohio. It sits just 10 miles east of Columbus, the capital and most populous city in the state. Reynoldsburg is located at the intersection of Interstates 70 and 270, giving it easy access to larger cities in the area. Home to over 37,000 people, Reynoldsburg is the 35th largest community in Ohio.

Known for its diversity and family-friendliness, Reynoldsburg was named the #16 most diverse suburb in Ohio in 2018. Reynoldsburg also has plenty of amenities for its residents and high- DEMOGRAPHICS rated public transportation for commuters working in Columbus. POPULATION 1-MILE 3-MILE 5-MILE ECONOMY 2023 Projection 12,836 106,185 238,549

With a median household income and median home values well above state and national 2018 Estimate 12,199 100,860 226,210 averages, Reynoldsburg has a strong economy. The unemployment rate and poverty level in the 2010 Census 11,525 93,792 206,830 city are also well below the state and national averages. Growth 2018-2023 5.22% 5.28% 5.45%

Reynoldsburg has a great mix of white-collar and blue-collar occupations. The most common Growth 2010-2018 5.85% 7.54% 9.37% occupations in the city are Administrative Support, Sales, and Management roles. There are HOUSEHOLDS 1-MILE 3-MILE 5-MILE more people in Reynoldsburg working in computer and math-related jobs than 95% of places in 2023 Projection 5,157 43,555 96,400 the US. 2018 Estimate 4,910 41,377 91,403 MARKET TRENDS 2010 Census 4,685 38,556 83,744 Growth 2018 - 2023 5.03% 5.26% 5.47% The cost of living in Reynoldsburg is low compared to other affluent Columbus suburbs, which has prompted population growth in recent years. The year over year appreciation rate for Growth 2010 - 2018 4.80% 7.32% 9.15% homes in the city is 11.09%, out pacing both the state and national appreciation rates. INCOME 1-MILE 3-MILE 5-MILE 2018 Avg Household $56,964 $58,650 $64,069 UNEMPLOYMENT MEDIAN HOUSEHOLD Income RATE INCOME 2018 Med Household $48,130 $49,270 $52,708 Income

Reynoldsburg: 4.3% Reynoldsburg: $61,648 OH Average: 4.6% OH Average: $50,674 National Average: 4.7% National Average: $55,322 28 COLUMBUS, OHIO

Columbus is the most populous city in the state of Ohio and the 14th most populous city in America. As the capital of Ohio, Columbus is a well- blended mixture of government, industry and the enormous Ohio State University. There is a strong high tech presence in the city, in addition to other major industries of education, insurance, banking, fashion, defense, medical research, and hospitality, amongst others. The diverse economic base in Columbus brings it more economic stability and growth than many of its Rust Belt neighbors. Having been ranked as one of the best places in the country to operate a business in, Columbus is home to the headquarters of five Fortune 500 companies: Nationwide Mutual Insurance Company, American Electric Power, L Brands, Cardinal Health and Big Lots.

Efforts to revive the downtown area and inner neighborhoods have been underway with the emergence of sprawling and attractive residential suburbs just west of the university. These areas have excellent housing, shopping, schools, golf courses and civic amenities in a layout more spacious, wooded and appealing than many similar cities in the region. Plenty of employment opportunities in commercial centers are available in and near these suburbs and with the added low cost of living for the available amenities, Columbus continues to entice those looking to relocate to a more affordable city.

Over $1.3 Billion 2,078,725 5 Gross Domestic Product MSA Fortune 500 (MSA) Residents Headquarters

29 THE OHIO STATE UNIVERSITY BY THE NUMBERS Columbus is home to one of the top colleges in the nation with over 45,946 undergraduate and 13,891 graduate students while being the third largest employer in the state with close to 30,000 employees. Ohio State University is known for educating successful individuals as they are ranked 10th for awarding degrees to Fortune 500 CEO’s. 66,444+ 28,241+ 500,000+ The University’s football team has a massive economic impact on the city of Columbus Total Enrollment Academic & Admin. Staff Alumni Worldwide and state as a whole. Competing in the NCAA Division, each football game brings in about $7.15 million with the majority coming from their 108,000 seat stadium ticket sales, and the rest from concessions and parking. The popular team attracts tourists from around the country who spend additional money on hotels, food and attractions.

The university has an extensive student life program, with over 1,000 student organizations; intercollegiate, club and recreational sports programs; student $7.15M $2.14B #56 media organizations and publications, fraternities and sororities; and three student From Each Total Best National governments. Football Game Economic Impact University (US News) 30 LOCAL ATTRACTIONS

Ohio State Fair

Ohio State Fair is one of the largest fairs in the United States. This event is held every summer for twelve days in Columbus with an estimated economic impact of $68.6 million.

The fair boasts several rides and attractions for everyone to enjoy along with delicious food from local vendors and live music. The Ohio State Fair brings in people from all over the country and had a record-breaking number of attendees in 2015 with over 950,000 fairgoers.

Ohio Theatre

The Ohio Theatre is a performing arts center in Columbus known as the “Official Theatre of the State of Ohio”. The famous architect, Thomas W. Lamb, who designed the well-known theatre has claimed it as one of his most successful projects.

The Ohio Theatre hosts a variety of artists from classical music to modern dance. The venue is one of the busiest performing arts facilities in the state.

Columbus Zoo and Aquarium

The Columbus Zoo and Aquarium is home to over 7,000 animals representing over 800 species. The zoo has a competitive advantage with their 140-acre 18-hole golf course known as the Safari Golf Club. The popular attraction brings in over 2.3 million visitors annually.

The Zoo operates its own conservation program as well, donating money to outside programs as well as participating in their own conservative efforts. Over the past five years, the zoo has contributed over $3.3 million to more than 40 projects in 30 countries.

31 10-Mile

5-Mile 4 RETAIL COMPETITION 3 Shopping Built/ GLA Occ. Quoted 5 No. Anchors 3-Mile 2 Center Renovated (SF) % Rent PSF 6 Ashley Furniture, Michaels, Family S Brice Park 1989 158,565 88% N/A 7 Dollar Chantry Capital City Auto Auction S 8 1 1994 257,807 19% N/A Square (Shadow), Escape Room 1 9 Brice 2 1972 46,954 19% N/A N/A Point Livingston Avenue 1972/ 3 101,570 70% N/A Big Lots, Save-A-Lot 10 Center 2001 11 Burlington 4 1987 165,181 99% N/A Burlington, Value City Furniture East Taylor Walmart (Shadow), Sam's Club 5 2000 653,544 96% $23.00 Square (Shadow), Best Buy (Shadow), Taylor Ashley Homestore, Staples, Lifeway 6 2005 59,005 100% $33.00 Park Christian PetSmart & 7 2012 28,970 100% N/A PetSmart, Old Navy Old Navy Shoppes at 8 1990 59,495 85% $18.00 Goodwill, Tuesday Morning Turnberry Hunters Run Marcus Cinema (Shadow), Bed Bath 9 2000 88,646 98% $19.00 Centre & Beyond, Barnes & Noble Shoppes at 10 2008 140,608 86% $22.00 Kohl's (Shadow), Lifetime Fitness Stonecreek 12 Pickerington 11 2006 105,511 100% N/A Giant Eagle Square 13 Winchester Home Depot (Shadow), Kroger, 12 1995 293,656 97% $16.00 Square Ohio State School of Waterloo Walmart (Shadow), Planet Fitness, 13 2005 357,731 97% $16.00 Crossing Dollar Tree 32 SURROUNDING AREA

Subject Chantry Square Property Shopping Center

Brice Rd ±45,000 ADT

Tussing Rd ±19,000 ADT

33 Columbus Skyline

Interstate 70 ±129,000 ADT

Brice Rd ±45,000 ADT

Tussing Rd ±19,000 ADT Subject Property

34 OFFERING MEMORANDUM BRICE PARK 2640-2800 Brice Rd Reynoldsburg, OH 43068

EXCLUSIVELY LISTED BY