RETAIL INVESTMENTSSUBJECT PROPERTY the Site Is Identified As Taxnnn Parcel NET 4589- 74LEASE-9173-0000 Andin the NET Cabarrus Leasecounty Tax Office

November 18, 2019 Concord Mills Retail Strip Center - Concord, NC

INTRODUCTION

This section identifies the property being appraised, including the location, ownership history, date(s) of the appraisal, property rights, intended user and use, and type(s) of value. This section also identifies the parameters of the report, including describing the sources and extent of research and any limitations to the opinion(s) of value.

PROPERTY IDENTIFICATION The property appraised in this report is an existing, retail strip center located at 8031 Concord Mills Boulevard, ConcordINTERNATIONAL, Cabarrus County, NorthREAL Carolina ESTATE28027. The propertySINCE is1908 located outside the City ofM Concord A Rin theK City E ofT Concord I N jurisdictionG M for taxesE M and O zoning. R A N D U M

RETAIL INVESTMENTSSUBJECT PROPERTY The site is identified as taxNNN parcel NET 4589- 74LEASE-9173-0000 ANDin the NET Cabarrus LEASECounty Tax Office. According to public records, the site contains 1.76 acres, or 76,666 square feet. The improvements consist of 9,200 rentable square feet of space in one (1), one-story retail strip center building(s) constructed in 8031 2000CONCORD. MILLS BLVD., CONCORD, NORTH CAROLINA, 28027 (IN FRONT OF CONCORD MILLS MALL)

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ZM1136_APP MARKETING MEMORANDUM

Braun International Real Estate (“Agent”) has been engaged as the Exclusive Agent for the sale by the Owner of the Property. The Property is being offered for sale in an “As Is, Where Is” condition, and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. Neither the enclosed materials nor any information contained herein is to be used for any other purpose or made available to any other person without the express written consent of the Seller. The use of this Offering Memorandum and the information provided herein is subject to the terms, provisions and limitations of the Confidentiality Agreement furnished by Agent prior to delivery of this Offering Memorandum. The enclosed materials are being provided solely to facilitate the prospective investor ’s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, offers, employees, shareholders, partners or directors, as to the accuracy or completeness of the information contained herein. All interested parties shall make their own measurements of the property or engage a third party to verify any and all measurements of the property contained herein. 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. Braun International Real Estate has not made any investigation and makes no warranty or representation with respect to the income or expenses for the subject 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 Local, County, 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. All potential buyers must take appropriate measures to verify all of the information set forth herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Agent nor the Seller shall have any liability whatsoever for the accuracy of completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projects, and conclusions without reliance upon the material contained herein. Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for Sale at any time and for any reason. Seller and Agent expressly reserve the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/ or to terminate discussions with any entity at any time, with or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller. Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until the binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller’s obligations thereunder have been satisfied or waived. By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent. By accepting this marketing brochure, you agree to release Braun International Real Estate, and the representing agent(s), and hold them harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/ or purchase of this Property.

PAGE | 2 INTERNATIONAL REAL ESTATE SINCE 1908 1 Investment Overview

2 Property Overview

3 Sale Information

RETAIL INVESTMENTS 866.568.6638 ext. 100 NNN NET LEASE AND NET LEASE BraunCo.com

8031 CONCORD MILLS BLVD., CONCORD, NORTH CAROLINA, 28027 DRE# 01912556 (IN FRONT OF CONCORD MILLS MALL)

PAGE | 3 INTERNATIONAL REAL ESTATE SINCE 1908 November 18, 2019 Concord Mills Retail Strip Center - Concord, NC

Investment Overview Offering for sale AT&T and Denny's Investments 1 BUILDING EXTERIOR 8031 Concord Mills Blvd, Concord, North Carolina, 28027

INVESTMENT HIGHLIGHTS

• Cap rate: 7.25% • Annual Rent: $417,270 • AT&T Rent: $193,270 Annually - Net Lease • AT&T Lease current thru 2024 with 5 year extension to June 30, 2029 • Net Lease with a cap of $8.53 per sq. ft. of expenses reimbursement per year • Denny’s Lease: $224,000 Annually - NNN Lease

• Denny’s Lease current thru 2029 with (2) five year extensions to Overview Investment 2039 • Rental Escalations: Yes • S&P Rating: BBB for AT&T • Listing price $5,750,000

BUILDING EXTERIOR

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ZM1136_APP

PAGE | 4 INTERNATIONAL REAL ESTATE SINCE 1908 November 18, 2019 Concord Mills Retail Strip Center - Concord, NC

BUILDING EXTERIOR

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BUILDING EXTERIOR

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ZM1136_APP PROPERTY SUMMARY THE OFFERING

Property Name AT&T and Denny's

8031 Concord Mills Blvd Property Address Concord, North Carolina 28027

Property Type Retail Outparcel Pad

APN 4589-74-9173-0000

Constructed in 2000, partly renovated Year Built; Year Renovated in 2009 for Denny’s

Land Area 1.76 acres – 76,666 SF

Building Size 9,200 SF Leasable Area The property is an outparcel of Concord Mills Shopping Center which is one of North Carolina’s largest tourist Number of Stories Single Story attractions with over 200 stores, restaurants, entertainment, Adjacent Properties All Retail 26,000SF indoor aquarium. Near the Charlotte Motor

Investment Class A Speedway and 10+ miles from uptown Charlotte. The mall is reported to have over 20 million visitors per year.

Parking Spaces 105 Overview Investment

Parking Ratio 10.94

C-2, General Commercial District – Zoning Office, Medical, Retail

Utilities All municipal utilities are available

Traffic signal nearby which enhance Signalized Intersection access to the property

PAGE | 65 INTERNATIONAL REAL ESTATE SINCE 1908 November 18, 2019 Concord Mills Retail Strip Center - Concord, NC

INCOME APPROACH

The income approach is an appraisal procedure, which capitalizes an expected income stream into an indication of market value. The underlying premise is that an informed purchaser will pay no more for the subject property than he would have to pay for another property, which has an income stream of comparable quantity, quality and durability.

Direct Capitalization is typically of primary importance for properties with stable income streams, or income streams, which have changes in income in a straight line over a predictable time frame. A discounted cash flow analysis is best suited to measure the net present value of volatile income stream. This method of valuation is typically of primary significance in the analysis of multi-tenant properties, properties undergoing lease-up, properties with significant changes in the income stream over the anticipated holding period or properties wherein the improvements have either a short-term lease or a short remaining economic life. In our discussions with broker’s active in the marketing of retail strip centers, we identified that the majority of stabilized facilities were bought and sold based on the capitalization of current operations.

METHODOLOGY We estimated the Leased Fee value by direct capitalization of the stabilized net operating income. The property is being valued as a single-user retail strip center. We also perform a discounted cash flow (DCF) analysis over a typical 10-year holding period. The two analyses are explained on the following pages.

APPRAISAL DATES We assumed an As Is value date of October 22, 2019 as the property was considered stabilized at that time. This is the date we inspected the property.

RENTRENT ROLL ROLL The property is an existing retail strip center constructed in 2000. The following table provides the current rent roll for the property.

AT&T AND DENNY'S OUTPARCELRENT PAD ROLL CONCORD MILLS RETAIL STRIP CENTER Formula a b c = a x b % of Start End Rent Annual Suite Tenant SF NRA Date Date ($/SF) Rent 101 AT&T 3,514 38.20% Jul-09 Jun-24 $55.00 $193,270 102 Denny's 5,686 61.80% Jul-09 Jun-29 $39.40 $224,000 Total 9,200 $45.36 $417,270

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ZM1136_APP

PAGE | 7 INTERNATIONAL REAL ESTATE SINCE 1908 DENNY'S & AT&T REGIONAL AND MARKET AREA ANALYSIS

Regional and Market Area Analysis

REGIONAL MAP

DENNY'S & AT&T REGIONAL AND MARKET AREA ANALYSIS

Transportation Major transportation routes in the larger area include Interstate 85, Interstate 485, Interstate 77 and Concord Mills Blvd./Bruton Smith Blvd.

Employment

Employment by Industry - Concord, NC

2019 Percent of OvervIndustryiew Estimate Employment The subjectAgriculture/Mining is located in Concord, in Cabarrus County. It is part of the Charlotte98 -Gastonia0.20%-Rock Hill, NC-SCConstruction MSA. 3,470 7.10% Manufacturing 5,181 10.60% PopulWholesaleation trade 1,613 3.30% PopulatRetailion characteristicstrade relative to the subject property are presented in5,621 the following 11.50%table. CONCORD,Transportation/Utilities NORTH CAROLINA CENUS INFORMATION2,542 5.20% PopulationInformation 782 1.60% Finance/Insurance/Real Estate Services Annual % 5,377 11.00%Annual % Services Change Estimated22,582 Projected46.20%Change Area 2000 2010 2000 - 10 2019 2024 2019 - 24 Public Administration 1,613 3.30% United States 281,421,906 308,745,538 1.0% 332,417,793 345,487,602 0.8% NorthTotal Carolina 8,049,313 9,535,483 1.8% 10,609,15548,879 11,226,048100.0% 1.2% Source: Site-to-Do-Business (STDB Online) Charlotte-Concord-Gastonia, NC-SC MSA 1,717,490 2,217,012 2.9% 2,616,243 2,852,069 1.8% Cabarrus County, NC 131,063 178,011 3.6% 216,050 237,643 2.0% Concord, NC 58,963 80,174 3.6% 99,531 109,409 2.0% UnSource:emp Site-to-Do-Businessloyment (STDB Online)

The following table exhibits current and past unemployment rates as obtained from the Bureau of Labor Statistics. Overall, the Region boasts one of the lowest unemployment rates for metropolitan statistical© 2019 VALBRIDGE areas PROPERTY in the country ADVISORS at | Charlotte 3.1 percent . Page 6 UNEMPLOYMENT RATES Unemployment Rates Area YE 2012 YE 2013 YE 2014 YE 2015 YE 2016 YE 2017 YE 2018 YTD 2019 United States 7.9% 6.7% 5.6% 5.0% 4.7% 4.1% 3.9% 3.7% North Carolina 9.0% 7.0% 5.8% 5.4% 5.0% 4.2% 3.7% 4.0% Charlotte-Concord-Gastonia, NC-SC MSA 8.8% 6.4% 5.3% 4.9% 4.6% 3.9% 3.4% 3.1% Cabarrus County, NC 8.6% 6.2% 4.9% 4.6% 4.3% 3.7% 3.4% 3.3% Concord, NC 6.4% 4.4% 3.8% 3.9% 4.3% 3.9% 3.5% 3.4% Source: Bureau of Labor Statistics - Year End - National & State Seasonally Adjusted

Median Household Income Total median household income for the region is presented in the following table. Overall, the subject’s MSA and county compare favorably to the state and the country.

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AERIAL MAP Investment Overview Investment

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PHOTOS OF SUBJECTSubject Photos PROPERTY Primary Street Scene Photographs

CONCORD MILLS BLVD. FACING WEST

Investment Overview Investment

CONCORD MILLS BLVD. FACING EAST

PAGE | 10 INTERNATIONAL REAL ESTATE SINCE 1908 DENNY'S & AT&T PHOTOS OF SUBJECT PROPERTY IMPROVEMENTS DESCRIPTION

FLOOR PLAN- DENNY’S Investment Overview Investment

SITE PLAN

Exterior Photographs

. NORTH ELEVATION

Investment Overview Investment

EAST ELEVATION

. SOUTH ELEVATION

Investment Overview Investment

WEST ELEVATION

PAGE | 14 INTERNATIONAL REAL ESTATE SINCE 1908 DENNY'S & AT&T IMPROVEMENTS DESCRIPTION PHOTOS OF SUBJECT PROPERTY

Interior Photographs

. DENNY’S DINING ROOM

Investment Overview Investment

DENNY’S KITCHEN

DENNY’S DINING ROOM

Investment Overview Investment

WATER DAMAGE ON WINDOW – DENNY’S

. AT&T

Investment Overview Investment

AT&T

IMPROVEMENT ANALYSIS

All building measurements and improvement descriptions were based on our inspection of the property on October 22, 2019, as well as any information provided to us and/or available through the public records.

GENERAL DESCRIPTION The improvements consist of 9,200 rentable square feet of space in one (1), one-story retail strip Propertycenter building Overview(s). As of the date of inspection, the improvements appeared to be of good quality The Property is located on 8031 Concord Mills Blvd, Concord, North Carolina 28027. The subject neighborhood is located in the Concord 2 Millsand sectioncondition. of Concord.The The following area is suburban image in isnature. the Thecustomer neighborhood entrance is bounded side by of Concord the building Mills Blvd. facing to the north, Concord I-85 to the east,Mills Concord Boulevard. Mills Blvd. to the south, and Derita Rd. to the west. This retail outparcel pad is in front of the Concord Mills Mall. Location Overview Location

PAGE | 18 SUBJECT PHOTOGRAPH INTERNATIONAL REAL ESTATE SINCE 1908

EXTERIOR DESCRIPTION The exterior of the building is masonry and stucco, with retail-style glass storefronts. The roofing is rubber membrane.

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ZM1136_APP November 18, 2019 Concord Mills Retail Strip Center - Concord, NC REGIONAL ANALYSIS - CONCORD, NORTH CAROLINA REGIONAL ANALYSIS

This section provides demographics on the local and regional areas. Population and household trends are presented, and population and household growth are projected for five years. In addition, household income and employment trends are provided.

POPULATION AND HOUSEHOLD TRENDS AND PROJECTIONS As shown in the following table, Cabarrus County, NC experienced an annual population growth of 2.0% since 2010. It is projected for annual growth of 1.5% over the next five years. Concord, NC (city) had annual growth of 2.1%, and is projected to have annual growth of 1.4% over the next five years.

AREA POPULATION STATISTICS Annual Estimate Annual Projection Annual Area 2000 2010 Change 2020 Change 2025 Change North Carolina 8,049,331 9,535,483 1.7% 10,545,270 1.0% 11,084,066 1.0% Cabarrus County, NC 131,058 178,011 3.1% 216,845 2.0% 233,238 1.5% Concord, NC (city) 58,248 79,066 3.1% 97,248 2.1% 104,404 1.4% Source: Spotlight Location Overview Location As shown in the following table, similar to the population, households in Cabarrus County, NC experienced annual growth of 1.8% since 2010. Households are projected for growth of 1.4% over the next five years.

AREA HOUSEHOLD STATISTICS Annual Estimate Annual Projection Annual Area 2000 2010 Change 2020 Change 2025 Change North Carolina 3,132,039 3,745,155 1.8% 4,152,345 1.0% 4,371,606 1.0% Cabarrus County, NC 49,515 65,666 2.9% 78,692 1.8% 84,294 1.4% Concord, NC (city) 21,752 29,112 3.0% 35,304 1.9% 37,765 1.4% Source: Spotlight

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ZM1136_APP November 18, 2019 Concord Mills Retail Strip Center - Concord, NC Location Overview Location

SUBJECT

CABARRUS COUNTY MAP

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ZM1136_APP November 18, 2019 Concord Mills Retail Strip Center - Concord, NC

NEIGHBORHOOD ANALYSIS

This section analyzes the characteristics of the neighborhood. The neighborhood’s general boundaries are defined. The current land use patterns, primary access, access to utilities, any potential environmental impacts are analyzed. Based on the analysis, a conclusion is drawn about the neighborhood’s current stage in the neighborhood lifecycle.

LOCATION/BOUNDARIES The neighborhood is located in a mature area southwest of historic downtown Concord. The neighborhood is generally bounded by Derita Road to the west, Poplar Tent Road to the north, US Highway 29 to the east, and Interstate 485 to the south.

SUBJECT

NEIGHBORHOOD MAP

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ZM1136_APP

PAGE | 21 INTERNATIONAL REAL ESTATE SINCE 1908 November 18, 2019 Concord Mills Retail Strip Center - Concord, NC

LAND USE PATTERNS As shown in the following aerial, land use patterns consist primarily of highway commercial uses, surrounded by residential neighborhoods. The land uses in the neighborhoods appear complementary.

SUBJECT

AERIAL LAND USE MAP

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ZM1136_APP November 18, 2019 Concord Mills Retail Strip Center - Concord, NC

SITE ANALYSIS

LOCATION The site is located within the City of Concord jurisdiction for taxes and zoning with a street address of 8031 Concord Mills Boulevard, Concord, NC. According to the Cabarrus County public records, the subject is identified as tax parcel identification number 4589-74-9173-0000.

AERIAL MAP

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ZM1136_APP Location Overview Location

Concord, North Carolina

Concord is a city in Cabarrus County, in North Carolina. It is the county seat and the largest city in Cabarrus County. The city of Concord is the second-largest city in the Charlotte Metropolitan Area and is the 10th most populous city in North Carolina

In 2015, Concord was ranked as the city with the 16th fastest growing economy in the United States.

PAGE | 24 INTERNATIONAL REAL ESTATE SINCE 1908 HISTORIC DISTRICT OF CONCORD CHARLOTTE MOTOR SPEEDWAY Location Overview Location Concord is the home to Charlotte Motor Speedway, a NASCAR Research and Development Office (which also is the headquarters for research for touring and sportscar racing operations), and several professional race teams, including Hendrick Motorsports, Roush Fenway Racing, Richard Petty Motorsports, and Chip Ganassi Racing and Speedway Motorsports, Inc. and Charlotte Motor Speedway. Concord is also home to Windshear, Inc., a firm that owns a state-of-the-art wind tunnel facility used to test the aerodynamics of vehicles (mostly motorsports vehicles).

PAGE | 25 INTERNATIONAL REAL ESTATE SINCE 1908 4 Sale Information

 Buyer will present offer on a commercial purchase and sale agreement  Buyer are required to provide proof of funds to close with offer  If the buyer is obtaining a loan, provide lender approval letter  Buyer to deposit 3% of the purchase price into escrow, balance at closing  60 day escrow period or less  Buyer broker compensation 2%  Property is being sold in as is condition  Email: [email protected]

 Phone: 866.568.6638 ext. 100 Analysis Pricing & Financial

PAGE | 26 INTERNATIONAL REAL ESTATE SINCE 1908 DISCLAIMER

Braun International Real Estate is the exclusive listing broker on behalf of the seller. Braun makes no representations or warranties on the approved use of the property. This memorandum is provided for the sole purpose of allowing a potential buyer to evaluate the property. The potential buyer is urged to perform its own examination and inspection of property, and shall rely solely on such examination and investigation and not on this brochure or any materials, statements or information contained herein or otherwise provided. Neither Braun, its members, managers officers, employees or agents, nor any of its partners, directors, officers, employees and agents, nor seller, make any representations or warranties, whether express or implied, by operation of law or otherwise, with respect to this memorandum, the property or any materials, statements or information contained herein or relating thereto, or as to the accuracy or completeness of such materials, statements or information, or as to the condition of the property, quality or fitness of the property, or assumes any responsibility with respect thereto. Such materials, statements and information have in many circumstances been obtained from outside sources and have not been tested or verified. Projections, in particular, are based on various assumptions and subjective determinations as to which no guaranty or assurance can be given. Without limiting the foregoing, in the event this brochure contains information relating to any “hazardous materials” in relation to the property, such information shall in no way be construed as creating any warranties or representations, expressed or implied, by operation of law or otherwise, by Braun, broker, sales agents or seller, as to the existence or non-existence or nature or extent of hazardous materials in, under, on or around the property. This brochure is provided subject to errors, omissions, prior sale, change of price or terms and any other changes to the materials, statements and information contained herein or relating to the Property. Braun will not be responsible if the property is unsatisfactory to the buyer in any way. Braun suggests each buyer obtain appropriate advice from investment professionals prior to purchasing the interest.

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