Crown Point Shopping Center ™ 2500 Sardis Rd N, Charlotte, Nc 28227 Offering Memorandum Ret Ail Advisors Confidentiality & Disclaimer Statement

CROWN POINT SHOPPING CENTER ™ 2500 SARDIS RD N, CHARLOTTE, NC 28227 OFFERING MEMORANDUM RET AIL ADVISORS CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offering Memorandum contains select information pertaining to the business and affairs of Crown Point Shopping Center located at 2500 Sardis Rd N, Charlotte, NC 28227 (“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 Investment Overview...... 2 Executive Summary...... 3 Assumptions...... 4 Schedule of Prospective Cash Flow...... 5 Schedule of Leveraged Prospective Cash Flow...... 6 Rent Roll...... 8 Tenant Overviews...... 9-10

PROPERTY DESCRIPTION Physical Description...... 13 Birds Eye...... 14 Regional Map...... 15 Site Plan...... 16 Tenant Map...... 17

DEMOGRAPHICS City Overview | Charlotte, NC ...... 20-21 Demographics Report...... 22

EXCLUSIVELY LISTED BY: Kyle B. Matthews, CCIM Patrick Toomey Lawrence Shaw Chairman & CEO Managing Partner Broker of Record DIRECT +1.310.919.5757 DIRECT +1.310.919.5765 License No. 143281 MOBILE +1.310.622.3161 MOBILE +1.310.403.4984 [email protected] [email protected] License No. 01469842 License No. 00881133 Matthews Retail Advisors Pricing & Financial Analysis

™ PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS INVESTMENT HIGHLIGHTS

HIGH QUALITY RETAIL CENTER EXCELLENT, GROWING DEMOGRAPHICS • Crown Point Shopping Center is a high-quality retail center • 196,292 people within 5 miles with average household income anchored by Burlington Coat Factory (NAP), World Gym of $81,022 (35,200 SF), and Old Time Pottery (80,591 SF), a home goods and craft store with over 30 locations • 69,375 people within 3 miles with average household income of $75,400 • Strong visibility and convenient parking and access • More than 80% population growth in the immediate area since • Easy access to Interstate 74 and Sardis Road 2000 with 9% growth projected in the next 5 years VALUE ADD OPPORTUNITY STRONG CHARLOTTE TRADE AREA • 79% leased strip retail center with future upside through the • Retail net absorption is strong in Charlotte, with market potential lease-up of 32,000 SF vacancy decreasing to 6% and average rental rates increasing 25% from one year ago (source: Costar) • Average in-place rent is less than $4.50 PSF allowing for further rent grown as tenants leave or roll to market rates • Charlotte is renowned for its vibrant banking sector. With $2.2 trillion in assets, it is the second largest financial center in the STRONG RETAIL LOCATION nation, behind only New York • Crown Point offers strong co-tenancy which create excellent • Seven (7) Fortune 500 companies are headquartered in synergy and traffic to the center:Burlington Coat Factory, Charlotte including Bank of America (BYSE: BAC), Lowe’s Value City Furniture, Northern Tool & Equipment, Discount Home Improvement (NYSE: LOW), Duke Energy (NYSE: DUK), Tire, and Buffalo Wild Wings Nucor (NYSE: BUE), Family Dollar Stores (NYSE: FDO), Sonic • Other dominant tenants in trade area include: Walmart Automotive Group (NYSE: SAH), and Domtar (NYSE: UFS) Supercenter, Harris Teeter, Stein Mart, Target, Hobby Lobby, Marshalls, Pier 1 Imports, Michaels, Bed Bath & Beyond, Lowe’s Home Improvement, Best Buy, Dick’s Sporting Goods, Cost Plus World Market, Kohl’s, Ross, Cinemark and more • Crown Point is located along at the busy intersection of Independence Blvd. (63,000 cars per day), and Sardis Rd. (27,000 cars per day) in the East Charlotte retail corridor • $2.2 billion in consumer spending and more than 68,000 employees within 5 miles of Crown Point Shopping Center

P. 2 Matthews Retail Advisors OFFERING MEMORANDUM | Crown Point Shopping Center PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS EXECUTIVE SUMMARY

CROWN POINT SHOPPING CENTER 2500 SARDIS RD N CHARLOTTE, NC 28227 List Price �� $5,560,000 Gross Leasable Area �� 147,200 SF Price PSF �� $38 Occupancy ��79% NOI (In Place) �� $458,666 Cap Rate (In Place) ��8.25% NOI (Stabilized, Year 3) �� $755,853 Cap Rate (Stabilized*) ��11.86% Year Built �� 1990 Lot Size ��13.60 Acres

World Gym replacing Energy Fitness; World Gym storefront and pylon signage in process of being installed

* Stabilized return is calculated based on stabilized NOI divided by Purchase Price plus TI & LC for vacancies

Crown Point Shopping Center | OFFERING MEMORANDUM Matthews Retail Advisors P. 3 PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS ASSUMPTIONS

Property Timing Property Operating Parameters

Growth Rates: Capital Expense (Year 1): Start of Analysis Jan 2016 Market Rents 3% Capital Reserves $0.15 PSF End of Analysis Feb 2016 Operating Expenses 3% Analysis Period 10 Years Real Estate Taxes 3% General Vacancy: Capital Reserves 3% Year 1 5% CPI 3% Thereafter 5% Estimated Market Financing Operating Expenses (Year 1): Real Estate Taxes 2016 Budget Market financing estimates provided by Brian Krebs of Bar- LTV 65% rington Capital. Actual terms will vary based on market con- Insurance 2016 Budget Interest Rate 4.50% ditions at the time of closing and sponsor credit and qualifi- CAM 2016 Budget cations, among other things. Amortization 30 Years Management Fees 3% Term 10 Years For a current debt quote, please contact Brian Krebs via Per Leases and Amount Reimbursed by Tenants Points 1% email at [email protected] or by tele- CAM reconciliations phone at (818) 606-9476

MARKET LEASING Small Box Mid Box Large Box ASSUMPTIONS Renewal Probability 75% 75% 75% Market Rent (SF/YR) $10 $8 $4 Downtime 6 Months 6 Months 6 Months $20 PSF New $20 PSF New $20 PSF New Tenant Improvements $5 PSF Renew $5 PSF Renew $5 PSF Renew 5% New 5% New 5% New Leasing Commissions 2.5% Renew 2.5% Renew 2.5% Renew Rent Escalation 10% Mid Term 10% Mid Term 10% Mid Term Lease Term 10 Years 10 Years 10 Years Lease Type NNN+15% Admin NNN+15% Admin NNN+15% Admin

P. 4 Matthews Retail Advisors OFFERING MEMORANDUM | Crown Point Shopping Center 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 Feb-2017 Feb-2018 Feb-2019 Feb-2020 Feb-2021 Feb-2022 Feb-2023 Feb-2024 Feb-2025 Feb-2026 Feb-2027 EFFECTIVE GROSS REVENUE Base Rental Revenue $5.51 $811,583 $820,477 $826,350 $834,882 $847,029 $893,020 $902,344 $911,947 $921,839 $946,487 $1,081,606 Absorption & Turnover Vacancy ($1.94) (285,600) (69,079) 0 0 0 0 0 0 0 (36,103) (36,103) Scheduled Base Rental Revenue $3.57 525,983 751,398 826,350 834,882 847,029 893,020 902,344 911,947 921,839 910,384 1,045,503 Expense Reimbursement Revenue $1.18 173,633 224,197 247,129 254,147 261,642 269,504 277,393 285,402 293,779 290,385 351,861 Total Potential Gross Revenue $4.75 699,616 975,595 1,073,479 1,089,029 1,108,671 1,162,524 1,179,737 1,197,349 1,215,618 1,200,769 1,397,364 General Vacancy $0.00 0 0 (53,674) (54,451) (55,434) (58,126) (58,987) (59,867) (60,781) (25,741) (35,570) TOTAL EFFECTIVE GROSS REVENUE $4.75 699,616 975,595 1,019,805 1,034,578 1,053,237 1,104,398 1,120,750 1,137,482 1,154,837 1,175,028 1,361,794 OPERATING EXPENSES Real Estate Taxes $0.65 95,201 98,057 100,998 104,028 107,149 110,364 113,675 117,085 120,597 124,215 127,942 Insurance $0.10 14,369 14,800 15,244 15,701 16,172 16,657 17,157 17,672 18,202 18,748 19,310 Property Mgmt Fee $0.14 20,988 29,268 30,594 31,037 31,597 33,132 33,622 34,124 34,645 35,251 40,854 Payroll Maintenance $0.18 26,460 27,253 28,071 28,913 29,781 30,674 31,594 32,542 33,518 34,524 35,560 Sweeping $0.04 5,908 6,086 6,268 6,456 6,650 6,849 7,055 7,267 7,485 7,709 7,940 Utilities $0.26 38,799 39,964 41,163 42,398 43,670 44,979 46,329 47,719 49,151 50,625 52,144 Cleaning & Maintenance $0.03 4,193 4,319 4,449 4,582 4,719 4,861 5,007 5,157 5,312 5,471 5,635 Snow Removal $0.01 2,110 2,173 2,239 2,306 2,375 2,446 2,520 2,595 2,673 2,753 2,836 Landscaping $0.09 12,661 13,041 13,432 13,835 14,250 14,677 15,118 15,571 16,038 16,519 17,015 Plumbing $0.00 628 646 666 686 706 728 749 772 795 819 843 Electrical Repairs $0.09 12,994 13,384 13,785 14,199 14,625 15,064 15,516 15,981 16,461 16,954 17,463 Painting $0.02 2,462 2,536 2,612 2,690 2,771 2,854 2,940 3,028 3,119 3,212 3,308 Miscellaneous R & M $0.03 4,177 4,302 4,431 4,564 4,701 4,842 4,988 5,137 5,291 5,450 5,614 TOTAL OPERATING EXPENSES $1.64 240,950 255,829 263,952 271,395 279,166 288,127 296,270 304,650 313,287 322,250 336,464 NET OPERATING INCOME $3.12 $458,666 $719,766 $755,853 $763,183 $774,071 $816,271 $824,480 $832,832 $841,550 $852,778 $1,025,330 LEASING & CAPITAL COSTS Tenant Improvements $0.00 0 671,560 0 0 0 0 0 0 0 0 0 Leasing Commissions $0.00 0 140,000 0 0 0 0 0 0 0 0 0 Capital Reserves $0.15 22,080 22,080 22,080 22,080 22,080 22,080 22,080 22,080 22,080 22,080 22,080 TOTAL LEASING & CAPITAL COSTS $0.15 22,080 833,640 22,080 22,080 22,080 22,080 22,080 22,080 22,080 22,080 22,080 CASH FLOW $2.97 $436,586 ($113,874) $733,773 $741,103 $751,991 $794,191 $802,400 $810,752 $819,470 $830,698 $1,003,250

Crown Point Shopping Center | OFFERING MEMORANDUM Matthews Retail Advisors P. 5 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 2/1/2016 Feb-2017 Feb-2018 Feb-2019 Feb-2020 Feb-2021 Feb-2022 Feb-2023 Feb-2024 Feb-2025 Feb-2026 PROPERTY CASH FLOW Revenue $699,616 $975,595 $1,019,805 $1,034,578 $1,053,237 $1,104,398 $1,120,750 $1,137,482 $1,154,837 $1,175,028 Operating Expense (240,950) (255,829) (263,952) (271,395) (279,166) (288,127) (296,270) (304,650) (313,287) (322,250) NET OPERATING INCOME 458,666 719,766 755,853 763,183 774,071 816,271 824,480 832,832 841,550 852,778 Capital Expense (22,080) (833,640) (22,080) (22,080) (22,080) (22,080) (22,080) (22,080) (22,080) (22,080) Property Cash Flow 436,586 (113,874) 733,773 741,103 751,991 794,191 802,400 810,752 819,470 830,698 Funded Capital Expense 0 0 0 0 0 0 0 0 0 0 FUNDED PROPERTY CASH FLOW $436,586 ($113,874) $733,773 $741,103 $751,991 $794,191 $802,400 $810,752 $819,470 $830,698 DEBT SERVICE Senior Interest (161,437) (158,759) (155,957) (153,027) (149,963) (146,757) (143,404) (139,897) (136,230) (132,393) Senior Principal (58,302) (60,980) (63,782) (66,712) (69,777) (72,982) (76,335) (79,842) (83,510) (87,346) CASH FLOW AFTER DEBT SERVICE $216,847 ($333,613) $514,034 $521,364 $532,252 $574,452 $582,661 $591,013 $599,731 $610,959 NET FINANCING Acquisition/Disposition ($5,560,000) 0 0 0 0 0 0 0 0 0 $11,084,649 Assumption of Existing Debt $0 Loan Maturity $0 0 0 0 0 0 0 0 0 0 $0 Loan Prepayment $0 0 0 0 0 0 0 0 0 0 New Loan Funding $3,614,000 0 0 0 0 0 0 0 0 0 $0 Loan Fees ($36,140) 0 0 0 0 0 0 0 0 0 $0 CASH FLOW AFTER FINANCING (1,982,140) $216,847 ($333,613) $514,034 $521,364 $532,252 $574,452 $582,661 $591,013 $599,731 $8,801,175 LEVERAGED YIELD Leveraged Cost Basis 5,596,140 5,618,220 6,451,860 6,473,940 6,496,020 6,518,100 6,540,180 6,562,260 6,584,340 6,606,420 6,628,500 Cumulative Equity 1,982,140 2,062,522 2,957,142 3,043,004 3,131,796 3,223,653 3,318,715 3,417,130 3,519,052 3,624,642 3,734,068 LEVERAGED YIELD (On Initial Equity) 22.25% (Avg) 10.94% -16.83% 25.93% 26.30% 26.85% 28.98% 29.40% 29.82% 30.26% 30.82%

P. 6 Matthews Retail Advisors OFFERING MEMORANDUM | Crown Point Shopping Center PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

Crown Point Shopping Center | OFFERING MEMORANDUM Matthews Retail Advisors P. 7 PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS RENT ROLL

UPON EXPIRATION

Contract Market % of Expiration Tenant Name Suite Start End SF Date $/SF Rent/Yr Recovery Method MLA Rent Rent Market Assumption Vacant 1 8/1/17 7/31/27 20,000 8/1/17 $8.00 NNN+10% Market Midbox Old Time Pottery* 2A 12/1/10 1/31/21 80,591 3/1/16 $3.25 $261,924 Old Time Pottery $3.25 $4.64 70.04% Option Large Box Old Time Pottery-Option 2/1/21 1/31/26 2/1/21 $3.75 Old Time Pottery $3.75 $5.38 69.70% Market Large Box Vacant 3 3/1/17 2/28/27 12,000 3/1/17 $10.00 NNN+10% $10.00 $13.84 72.25% Market Small Box World Gym** 4 11/1/15 10/31/25 35,200 3/1/16 $7.21 $253,788 NNN+15% $10.06 $10.75 93.58% Option Midbox 8/1/16 $7.71 3% ann incr 8/1/17 $7.94 8/1/19 $8.42 8/1/20 $8.68 8/1/21 $8.94 8/1/22 $9.21 8/1/23 $9.48 8/1/24 $9.77 8/1/25 $10.06 World Gym-Option 11/1/25 10/31/30 11/1/25 $10.36 3% ann incr NNN+15% Option Midbox World Gym-Option 11/1/30 10/31/35 11/1/30 $12.01 3% ann incr NNN+15% Market Dukes Parcel ease2 7/1/99 1/31/42 NAP 3/1/16 $0.00 CAM $400/Yr Market MLA 0 Chi-Chi's Parcel ease1 7/1/99 1/31/42 NAP 3/1/16 $0.00 CAM $500/Yr Market MLA 0 BB&T Center Parcel ease4 7/1/99 1/31/42 NAP 3/1/16 $0.00 CAM $400/Yr Market MLA 0 Apple South Parcel ease3 7/1/99 1/31/42 NAP 3/1/16 $0.00 CAM $500/Yr Market MLA 0 VACANT 32,000 22% OCCUPIED 115,791 78% $4.45 $515,712 TOTAL 147,791 100%

* Tenant is currently occupying 100k sf but only paying rent on 80k sf of the space; Owner has the opportunity to recapture and lease 20k sf of the space with demising at Tenant’s cost ** Tenant pays $10,575/month in abated rent until May 2016. The seller will credit the buyer the difference between the abated rent and the full rent of $21,149/month.

P. 8 Matthews Retail Advisors OFFERING MEMORANDUM | Crown Point Shopping Center PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS COMPANY OVERVIEW

About Old Time Pottery Old Time Pottery markets discounted, closeout, and overstock housewares, silk flowers, hanging Company Trade Name Old Time Pottery baskets, framed art, linens, rugs, craft supplies, seasonal merchandise, and more. Its network of Ownership Private more than 30 stores spans some 10 states in the nation’s South and Midwest. Old Time Pottery sources its inventory, which the retailer displays in a warehouse-type setting, from the canceled Credit Rating NR orders and excess stock of manufacturers. Founded in 1986, Old Time Pottery is controlled by No. of Locations 30 Comvest Partners. Headquartered Murfreesboro, TN Old Time Pottery has had an eye on expanding. It has added two new stores in both Illinois Web Site http://www.oldtimepottery.com and Florida and an additional store in Tennessee. It’s also looking for ways to keep costs low. Old Time Pottery leverages the use of Electronic Data Interchange (EDI) to streamline its supply chain by identifying errors and discrepancies and communicating and correcting them. The effort works to reduce turnaround times and eliminate additional potential costs. “it’s actually a massive home goods store with everything from plants to furniture to linens Tennessee-based Old Time Pottery boasts a network of stores that reach across Georgia, Ala- to cookware.” bama, Florida, North Carolina, Ohio, Indiana, Illinois, South Carolina, Missouri, and Tennessee. “The outside is a bit deceiving as it looks like it would be a pottery store, but then you walk About Comvest Partners in and your jaw drops with how huge this place is!” Comvest Partners is a private investment firm providing equity and debt capital to middle-market companies across North America. Since its founding in 2000, Comvest has invested $1.9 bil- “Old Time Pottery is awesome! I came here to get a picture frame for a gift I was giving. I lion in over 135 companies. Today, Comvest’s funds have $2.5 billion of assets under manage- had struck out at a couple other places and I am glad that I remembered Old Time Pottery ment. Comvest provides capital resources and broad network of industry relationships, as well was close by! They have an awesome assortment of home good items for your kitchen, as financial sponsorship, critical strategic and operational support, and business development living room, bath, and bedroom! Really they cover your whole house! The seasonal decor assistance. is great too!”

Crown Point Shopping Center | OFFERING MEMORANDUM Matthews Retail Advisors P. 9 PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS COMPANY OVERVIEW

Company Trade Name World Gym Ownership Private Credit Rating NR Year Founded 1976 No. of Locations 200 Web Site http://www.worldgym.com “This place is less than 2 years old and still looks brand new. Definitely a higher quality World Gym International is an American fitness center founded in 1976 by Joe Gold during the gym than other chains .... “ glory days of “Muscle Beach” in Venice Beach, California. The gym was often frequented by celebrities and famous bodybuilders such as Arnold Schwarzenegger, Lou Ferrigno and Dave “Clean gym with plenty of floor space for cardio and strength training... Equipment in Draper. Since that time, World Gym has evolved into an internationally recognized brand. good shape and well-maintained... if you are self-motivated to get or stay fit/strong, and you are on a budget, this place will meet your needs! Recently opened under new World Gym currently has approximately 200 franchises worldwide located across six conti- management and is even better than before. nents and 19 countries. World Gym’s are located in 36 states and in Canada, Mexico, Central and South America, Australia, Taiwan, South Korea, India, Egypt, and Russia. Plans include “The staff is pleasant and the women’s restroom is always immaculate with showers further global expansion of the franchise network and the opening of regional flagship gyms. with a dressing area adjacent to each shower”

“GREAT! Gym, ALWAYS spotless, staff is very nice, great atmosphere, a place that once you get there, you’ll want to work out, even if you’re not in the best mood, good selection of machines (ALL CLEAN) and everyone around is nice.”

P. 10 Matthews Retail Advisors OFFERING MEMORANDUM | Crown Point Shopping Center Property Description

™ P. 12 Matthews Retail Advisors OFFERING MEMORANDUM | Crown Point Shopping Center PHYSICAL DESCRIPTION

THE OFFERING Property Name...... Crown Point Shopping Center Property Address...... 2500 Sardis Rd N Charlotte, NC 28227 Assessor’s Parcel Number �� 193-111-01 Zoning...... CC SITE DESCRIPTION Number of Stories ��One Year Built...... 1990 Gross Leasable Area (GLA) ��147,200 SF Lot Size...... 13.60 Acres Type of Ownership...... Fee Simple Landscaping...... Professional Topography...... Generally Level CONSTRUCTION Foundation...... Concrete Slab Exterior...... Brick Sprinklers...... Yes Parking Surface...... Asphalt Roof...... Flat with Mansard

Crown Point Shopping Center | OFFERING MEMORANDUM Matthews Retail Advisors P. 13 BIRDS EYE

Independence Blvd VPD:63,000

Sardis Rd VPD: 28,000

P. 14 Matthews Retail Advisors OFFERING MEMORANDUM | Crown Point Shopping Center REGIONAL MAP

Independence Blvd VPD:63,000

Crown Point Shopping Center | OFFERING MEMORANDUM Matthews Retail Advisors P. 15 SITE PLAN

P. 16 Matthews Retail Advisors OFFERING MEMORANDUM | Crown Point Shopping Center TENANT MAP

Crown Point Shopping Center | OFFERING MEMORANDUM Matthews Retail Advisors P. 17 P. 18 Matthews Retail Advisors OFFERING MEMORANDUM | Crown Point Shopping Center Demographics

™ PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS CITY OVERVIEW | CHARLOTTE, NC

The City of Charlotte is a major U.S. financial center, the second largest financial center by assets following New York City. Bank of America and the East Coast operations of Wells Fargo are headquartered in the city. Charlotte is also home of the Carolina Panthers of the National Football League, the Charlotte Bobcats of the National Basketball Association, the Charlotte Hounds of Major League Lacrosse, the NASCAR Hall of Fame, Carowinds amusement park, and the U.S. National Whitewater Center.

Both companies and individuals are attracted to the thriving Charlotte region. Booming with economic and commercial activity, Charlotte has all the advantages of one of the most rapidly growing metropolitan areas in the nation. Located in the Piedmont region of the Carolinas, Charlotte is two hours east of the Appalachian Mountains and three hours west of the Atlantic Ocean.

Quality Business Environment Charlotte serves as headquarters for many major national and international companies. During the past ten years, 6,940 new firms have invested more than $10 billion in new Charlotte facilities. Abundant modern office space is conveniently located throughout the city.

Hoover’s lists 4,277 companies with facilities in Charlotte-Mecklenburg in their database of companies with $1 million or more in revenue. In addition, 264 of the Fortune 500 companies have facilities here, seven of which are headquartered in Charlotte, ranking Charlotte sixth nationally in the number of headquartered firms.

Rich In History Although settled by the Scotch-Irish in the 1740s, the Charlotte area also felt the strong influence of German colonists who came south about the same time. The city owes its name to German-born Queen Charlotte, wife of England’s King George III, and the county to her birthplace of Mecklenburg. That is also why Charlotte is referred to as the “Queen City” and why the Bank of America building has a crown architecturally incorporated in its design.

Exceptional Market Access Charlotte is the 17th largest U.S. city with a population of 772,627, making it the largest city within the region. Of the major metro centers in the Southeast, Charlotte has 7.4 million and Atlanta has 8.3 million people living within a 100-mile radius. This radius population well exceeds Miami’s six million and the 2.6 million around Memphis. As a result, Charlotte has emerged as a financial, distribution and transportation center for the entire urban region. In addition, Charlotte has developed into a major wholesale center with the highest per capita sales in the United States.

Financial Powerhouse Charlotte is renowned for its vibrant banking sector. With $2.2 trillion in assets, it is the second largest financial center in the nation, behind only New York. By comparison, Atlanta has assets of only $190 billion and Boston $200 billion. Bank of America, the nation’s second largest bank, is headquartered here. In total, 35 banks with more than 250 local branches, as well as a Federal Reserve branch, are located in Charlotte. Our banks provide a wealth of services to commercial and individual customers and are leaders in the financial services industry.

Manufacturing Center of the Carolinas Charlotte is also a major manufacturing force. Mecklenburg County has 1,100 producers generating an annual payroll of $1.2 billion. The region has an additional 3,371 manufacturers, which employ more than 155,000 workers. Every major manufacturing sector is represented, including industrial machinery and metal working industries, along with computer and electronic products and bio-medical facilities.

P. 20 Matthews Retail Advisors OFFERING MEMORANDUM | Crown Point Shopping Center PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS CITY OVERVIEW CONT.

Growing Number of International Companies There is a growing number of international companies in the Charlotte area. More than 950 foreign-owned companies have Charlotte area facilities. Serving the international needs of the business community, Charlotte is a port of entry with fully staffed U.S. Customs and Border Protection offices. Also, the Charlotte Foreign Trade Zone (FTZ #57) and an inland port facility are located in the city.

Transportation Hub Charlotte is served by an excellent state and federal highway network, including major north-south and east-west interstate arteries, and a modern, expanded international airport terminal. In addition, 12 airlines offer direct and nonstop daily flights to 171 cities. International travelers appreciate the nonstop flights to 34 different cities, including Dublin, Frankfurt, Munich, London, Paris, Toronto, Madrid, Mexico City, Rio de Janeiro, Rome and numerous cities in the Caribbean. Each year, more than 39 million passengers fly through Charlotte Douglas International Airport. The airport’s aircraft activity ranks it the sixth most active air transportation center in the world.

The Charlotte region is also the center of the country’s largest consolidated rail system. Two major rail systems, Norfolk Southern Railway and CSX Transportation, link 43,200 miles of rail between Charlotte and 23 eastern states. Each offers piggyback facilities, combining with 309 trucking firms located here. Direct connections are provided to the Ports of Wilmington, Morehead City and Charleston.

Charlotte Area Largest Employers 20,000 - 32,999 EMPLOYEES U.S. Government Adecco Staffing Fedex Freight, Ground, Air & Office* Carolinas HealthCare System* US Airways 1,500-2,999 EMPLOYEES Frye Regional Medical Center Wells Fargo Company* 3,000-4,999 EMPLOYEES Accenture & Accenture Credit Svcs Gaston County* 10,000-19,999 EMPLOYEES Cabarrus County Schools* Adecco Staffing Hendrick Automotive Group* American Airlines CaroMont Health Inc.* Aerotek, Inc. Hilton Hotels Bank of America* Compass Group* AT&T North Carolina* The Home Depot Charlotte-Mecklenburg Schools* Daimler Trucks North America LLC ATI Allvac* Ingersoll Rand Co. Novant Health Gaston County Schools* BB&T Iredell Health Systems* Walmart & Sam’s Club Stores Mecklenburg County* Belk* Iredell-Statesville Schools* 5,000-9,999 EMPLOYEES Rowan-Salisbury Schools* Bi-Lo JC Penney Corp. Inc. City of Charlotte* Target Stores Catawaba County Schools* Marriott Hotels Domtar* TIAA-CREF* Catawaba Valley Medical Center* Robert Half International Duke Energy Corp.* Time Warner Cable* Central Piedmont Comm. College* Rock Hill Schools* Food Lion LLC* U.S. Postal Service Cleveland County Schools* S.C. State Government Harris Teeter* Union County Public Schools* CommScope* Schaeffler Group* Lowe’s* Univ. of N. Carolina at Charlotte* CORESTAFF Services Siemens North Carolina State Government 1,500-2,999 EMPLOYEES DMSI & DMSI Staffing* UPS/United Parcel Service Sonic Automotive Group* Accenture & Accenture Credit Svcs Family Dollar Stores* WG (Bill) Hefner VA Medical Center

*Regional / US or world headquarters. US/world headquarters are highlighted.

Crown Point Shopping Center | OFFERING MEMORANDUM Matthews Retail Advisors P. 21 PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS DEMOGRAPHICS REPORT

Population 1-Mile 3-Mile 5-Mile 2020 Projection 7,750 73,460 207,824 2015 Estimate 7,076 69,375 196,292 2010 Census 6,291 65,263 184,708 2000 Census 3,808 57,777 159,076 Growth 2000 - 2010 65.19% 12.96% 16.11% Growth 2010 - 2015 12.48% 6.30% 6.27% Growth 2015 - 2020 9.53% 5.89% 5.87%

Households 2020 Projection 3,521 30,237 82,559 2015 Estimate 3,227 28,319 77,635 2010 Census 2,894 26,267 72,527 2000 Census 1,693 23,121 63,434 Growth 2000 - 2010 70.98% 13.61% 14.33% Growth 2010 - 2015 11.49% 7.81% 7.04% Growth 2015 - 2020 9.12% 6.77% 6.34%

Income Income < $15,000 12.28% 9.56% 9.83% Income $15,000 - $24,999 14.42% 10.88% 10.42% Income $25,000 - $34,999 13.44% 10.59% 10.23% Income $35,000 - $49,999 16.43% 15.24% 15.11% Income $50,000 - $74,999 16.97% 17.03% 17.98% Income $75,000 - $99,999 13.01% 13.23% 11.64% Income $100,000 - $124,999 5.96% 8.12% 7.58% Income $125,000 - $149,999 2.69% 5.14% 4.90% Income $150,000 - $199,999 2.68% 5.16% 5.50% Income $200,000 - $249,999 1.13% 2.18% 2.33% Income $250,000 - $499,999 0.82% 2.24% 3.18% Income $500,000+ 0.17% 0.62% 1.30% 2015 Est. Average Household Income $58,000 $75,400 $81,022 2015 Est. Median Household Income $44,000 $55,467 $56,133

P. 22 Matthews Retail Advisors OFFERING MEMORANDUM | Crown Point Shopping Center PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

CROWN POINT SHOPPING CENTER 2500 Sardis Rd N Charlotte, NC 28227 ™ OFFERING MEMORANDUM

Kyle B. Matthews, CCIM Patrick Toomey Lawrence Shaw Chairman & CEO Managing Partner Broker of Record DIRECT +1.310.919.5757 DIRECT +1.310.919.5765 License No. 143281 MOBILE +1.310.622.3161 MOBILE +1.310.403.4984 [email protected] [email protected] License No. 01469842 License No. 00881133

Matthews Retail Advisors | 841 Apollo Street, Suite 150 | El Segundo, CA 90245 | www.matthews.com