Shoppes of Middle Tennessee MURFREESBORO , TN

OFFERING MEMORANDUM Shoppes of Middle Tennessee

MURFREESBORO , TN

CONFIDENTIALITY AND DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

NON-ENDORSEMENT NOTICE

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. Shoppes of Middle Tennessee

TABLE OF CONTENTS

Section 1 PRICING AND FINANCIAL ANALYSIS

Section 2 PROPERTY DESCRIPTION

Section 3 RECENT SALES

Section 4 IN ESCROW COMPARABLES

Section 5 ON MARKET COMPARABLES

Section 6 MARKET OVERVIEW

Section 7 DEMOGRAPHIC ANALYSIS PRICING AND FINANCIAL ANALYSIS

Shoppes of Middle Tennessee

MURFREESBORO , TN Shoppes of Middle Tennessee MURFREESBORO, TN PRICING AND FINANCIAL ANALYSIS

FINANCIAL OVERVIEW

Summary

Property Shoppes of Middle Tennessee Property Address 1660 South Middle Tennessee Murfreesboro, TN 37130

Financing Price $6,200,000 FIRST TRUST DEED Down Payment 40% / $2,480,000 Loan Amount $3,720,000 Loan Type Proposed New Lot Size (SF) 740,520 Interest Rate 4.5% Lot Size (Acres) 17.0000 Amortization 30 Buildable SF 90,600 Loan to Value 40/60 Price/Buildable SF $68.43

Number of Lots 3 Price/Lot $2,066,667 Lot Dimensions 406' Frontage Type of Ownership Fee Simple

Site Description Assessor's Parcel Number R0067183 Zoning COM Taxes $32,160 Tax Year 2017 Frontage 469 Services Cable, Electric Utilities Water, Gas, Sewer Traffic Counts 24000 Adjacent Development Kroger Anchored

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0480105 Marcus & Millichap. All rights reserved. 1 Shoppes of Middle Tennessee MURFREESBORO, TN PRICING AND FINANCIAL ANALYSIS

SUPPLEMENTAL INCOME

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0480105 Marcus & Millichap. All rights reserved. 2 Shoppes of Middle Tennessee MURFREESBORO, TN PRICING AND FINANCIAL ANALYSIS

TENANT SUMMARY

Suite Tenant GLA % of Lease Lease Annual Rent/ Changes Changes Expense Other: Lease GLA Commence Expire Rent SF On To Reimbs. Options/ Type % Rent A. Den Com. Ctr. 4,128 5/1/2014 4/30/2017 $38,192.00 $9.25 5/1/2017 $39,337.76 None 3-1 yr MG G. Check Into Cash 1,622 6/3/2013 5/31/2018 $25,952.04 $16.00 6/1/2018 $25,952.04 PTW 2-3 yr MG H. Campus Market 1,430 9/6/2013 12/6/2024 $25,001.64 $17.48 12/7/2024 $32,621.46 WPTX 2-10 yr MG I, J, K Laundry Mat 4,212 1/5/2012 1/4/2022 $54,240.12 $12.88 1/5/2022 $69,225.00 PTSW 2-5 yr MG 1664 Fred's (Land Lease) 25,200 6/1/1978 5/31/2028 $26,771.76 $1.06

B Events Hall (Part of 36,608 $0.00 Ownership)

TOTAL VACANT 73,200 $170,157.56 $167,136.26

TOTAL OCCUPIED

TOTAL 73,200 $170,157.56 $167,136.26

Shoppes of Middle Tennessee MURFREESBORO , TN Shoppes of Middle Tennessee MURFREESBORO, TN PROPERTY DESCRIPTION

INVESTMENT OVERVIEW

Investment Highlights

■ Strategic Location in One of the Fastest Growing Markets of the Southeastern Part of the US ■ High Traffic Counts

■ Tremendous Visibility

■ Located Blocks from Middle Tennessee State University.

■ All Utilities to the Site

■ Existing Value-Add Shopping Center as Part of the Property

■ Retail Frontage on Five Lane Boulevard

A +/- 17 acre development site; inclusive of an approximate 73,000 square foot shopping center (anchored by Fred's) in Murfreesboro, Tennessee. Subject property is situated near downtown Murfreesboro and is in close proximity to Middle Tennessee State University (fastest growing university in the state on Tennessee). The property is located on a newly widened five lane boulevard with direct access to Interstate-24 at Salem Highway. Immediate area of new commercial development with several convenient points of access to Downtown Murfreesboro and the University campus. Middle Tennessee State University's 25,000 students plus faculty and staff is located approximately six miles from the site.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0480105 Marcus & Millichap. All rights reserved. 5 Shoppes of Middle Tennessee MURFREESBORO, TN PROPERTY DESCRIPTION

INVESTMENT OVERVIEW

In addition to the development site, there is a 73,000 square foot shopping center. The shopping center presently has $111,183 of Net Operating Income.

The shopping center is constructed of concrete, brick, and masonry and has recently undergone a Class A remodeling.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0480105 Marcus & Millichap. All rights reserved. 6 Shoppes of Middle Tennessee MURFREESBORO, TN PROPERTY DESCRIPTION

PROPERTY PHOTOS

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0480105 Marcus & Millichap. All rights reserved. 7 Shoppes of Middle Tennessee MURFREESBORO, TN PROPERTY DESCRIPTION

AREA MAPS

Local Map Regional Map

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0480105 Marcus & Millichap. All rights reserved. 8 Shoppes of Middle Tennessee MURFREESBORO, TN PROPERTY DESCRIPTION

SITEPLAN

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0480105 Marcus & Millichap. All rights reserved. 9 Shoppes of Middle Tennessee MURFREESBORO, TN PROPERTY DESCRIPTION

AERIAL PHOTO

Shoppes of Middle Tennessee MURFREESBORO , TN Shoppes of Middle Tennessee MURFREESBORO, TN RECENT SALES

RECENT SALES MAP

Shoppes of Middle Tennessee 1) 3055 Avenue Way 2) 2525 Memorial Boulevard 3) Airport Road 4) CubeSmart Parking Storage 5) 1405 Medical Center Parkway

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0480105 Marcus & Millichap. All rights reserved. 12 Shoppes of Middle Tennessee MURFREESBORO, TN RECENT SALES

PRICE PER SF AND PRICE PER ACRE

AVERAGE PRICE/ACRE

0 3055 2525 Airport CubeSmart 1405 Avenue Memorial Road Parking Medical Way Boulevard Storage Center Parkway

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0480105 Marcus & Millichap. All rights reserved. 13 Shoppes of Middle Tennessee MURFREESBORO, TN RECENT SALES

RECENT SALES Shoppes of Middle Tennessee 1660 South Middle Tennessee Blvd. Murfreesboro, TN 37130

Sale Price: $6,200,000 Lot Size (SF): 740,520 Down Payment: $2,480,000 Lot Size (Acres): 17.0000 Down Payment %: 40% Lot Dimensions: 406' Frontage Zoning: COM

Subject Property

1 3055 Avenue Way Murfreesboro, TN 37129

Close of Escrow: 5/2/2016 Lot Size (SF): Sale Price: $3,170,000 Price/SF: Down Payment: Lot Size (Acres): 5.4900 Down Payment %: Price/Acre: $13 Zoning: Lot Dimensions:

2 2525 Memorial Boulevard Murfreesboro, TN 37129

Close of Escrow: 7/5/2013 Lot Size (SF): Sale Price: $3,071,931 Price/SF: Down Payment: Lot Size (Acres): 5.3400 Down Payment %: Price/Acre: $13 Zoning: Lot Dimensions:

Comments This was part of an assemblage.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0480105 Marcus & Millichap. All rights reserved. 14 Shoppes of Middle Tennessee MURFREESBORO, TN RECENT SALES

RECENT SALES

3 Airport Road Murfreesboro, TN 37129

Close of Escrow: 7/3/2013 Lot Size (SF): Sale Price: $2,100,000 Price/SF: Down Payment: Lot Size (Acres): 8.3600 Down Payment %: Price/Acre: $6 Zoning: Lot Dimensions:

Comments On July 3, 2013 8.36 acres of land located on Airport Road in Murfreesboro, Tennessee were sold for $2,100,000, or approximately $251,197 per acre. The property consists of two adjacent parcels with frontage on both Airport Road and Memorial Boulevard and next to Murfreesboro Municipal Airport. The two lots sold were among a block of properties on the western side of the airport between Memorial Boulevard. This is part of an assemblage please see

4 CubeSmart Parking Storage E I-24 Cutoff (Part of Portfolio) Murfreesboro, TN 37127

Close of Escrow: 4/21/2016 Lot Size (SF): Sale Price: $1,726,618 Price/SF: Down Payment: Lot Size (Acres): 6.9900 Down Payment %: Price/Acre: $6 Zoning: Lot Dimensions:

Comments This transaction represents the sale of several storage facilities located in the Tennessee and Massachusetts markets.

5 1405 Medical Center Parkway Murfreesboro, TN 37129

Close of Escrow: 4/28/2017 Lot Size (SF): Sale Price: $1,482,000 Price/SF: Down Payment: Lot Size (Acres): 7.1000 Down Payment %: Price/Acre: $5 Zoning: Lot Dimensions:

Comments On April 28, 2017 the 7.1-acre land property at 1405 Medical Center Pkwy was sold in an investment transaction for $1,482,000 or $208,732/acre. At the time of sale, it was zoned residential with no previous commercial development. Sale price and property size was confirmed by the listing broker.

Shoppes of Middle Tennessee MURFREESBORO , TN Shoppes of Middle Tennessee MURFREESBORO, TN IN ESCROW COMPARABLES

IN ESCROW COMPARABLES MAP

Shoppes of Middle Tennessee 1) Lot 5A-Waterstone Office Park 2) Lot N6-Gateway 3) Lot 2-Sulfer Springs Road

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0480105 Marcus & Millichap. All rights reserved. 17 Shoppes of Middle Tennessee MURFREESBORO, TN IN ESCROW COMPARABLES

PRICE PER SF AND PRICE PER ACRE AVERAGE PRICE/SF

12.00

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0.00 Lot Lot Lot 5A-Waterstone N6-Gateway 2-Sulfer Office Springs Park Road

AVERAGE PRICE/ACRE

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0 Lot Lot Lot 5A-Waterstone N6-Gateway 2-Sulfer Office Springs Park Road

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0480105 Marcus & Millichap. All rights reserved. 18 Shoppes of Middle Tennessee MURFREESBORO, TN IN ESCROW COMPARABLES

IN ESCROW COMPARABLES Shoppes of Middle Tennessee 1660 South Middle Tennessee Blvd. Murfreesboro, TN 37130

Sale Price: $6,200,000 Lot Size (SF): 740,520 Down Payment: $2,480,000 Lot Size (Acres): 17.0000 Down Payment %: 40% Lot Dimensions: 406' Frontage Zoning: COM

Subject Property

1 Lot 5A-Waterstone Office Park 1608 Williams Drive Murfreesboro, TN 37129

Close of Escrow: In Escrow Lot Size (SF): 135,036 List Price: $1,755,468 Price/SF: $13.00 Down Payment: $702,187 Lot Size (Acres): 3.1000 Down Payment %: 40% Price/Acre: $566,280 Zoning: COM Lot Dimensions:

Comments This property has been on the market for 1,263 days.

2 Lot N6-Gateway Center Parkway Murfreesboro, TN 37219

Close of Escrow: In Escrow Lot Size (SF): 161,172 List Price: $1,369,524 Price/SF: $8.50 Down Payment: $410,857 Lot Size (Acres): 3.7000 Down Payment %: 30% Price/Acre: $370,142 Zoning: COM Lot Dimensions:

Comments Being sold by the city of Murfeesboro.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0480105 Marcus & Millichap. All rights reserved. 19 Shoppes of Middle Tennessee MURFREESBORO, TN IN ESCROW COMPARABLES

IN ESCROW COMPARABLES

3 Lot 2-Sulfer Springs Road 1215 Sulfer Springs Road Murfreesboro, TN 37219

Close of Escrow: In Escrow Lot Size (SF): 165,528 List Price: $890,000 Price/SF: $5.38 Down Payment: $445,000 Lot Size (Acres): 3.8000 Down Payment %: 50% Price/Acre: $234,211 Zoning: COM Lot Dimensions:

Comments Property has been on the market 2,128 days.

Shoppes of Middle Tennessee MURFREESBORO , TN Shoppes of Middle Tennessee MURFREESBORO, TN ON MARKET COMPARABLES

ON MARKET COMPARABLES MAP

Shoppes of Middle Tennessee 1) N Tennessee Blvd. @ Northfield Blvd. 2) Victory Station Parcel O 3) Lebanon Road Development Site 4) Development Memorial Blvd. Development's Site

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0480105 Marcus & Millichap. All rights reserved. 22 Shoppes of Middle Tennessee MURFREESBORO, TN ON MARKET COMPARABLES

PRICE PER SF AND PRICE PER ACRE AVERAGE PRICE/SF

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0.00 N Victory Lebanon Development Tennessee Station Road Memorial Blvd. Parcel Development Blvd. @ O Site Development's Northfield Site Blvd.

AVERAGE PRICE/ACRE

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0 N Victory Lebanon Development Tennessee Station Road Memorial Blvd. Parcel Development Blvd. @ O Site Development's Northfield Site Blvd.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0480105 Marcus & Millichap. All rights reserved. 23 Shoppes of Middle Tennessee MURFREESBORO, TN ON MARKET COMPARABLES

ON MARKET COMPARABLES Shoppes of Middle Tennessee 1660 South Middle Tennessee Blvd. Murfreesboro, TN 37130 Sale Price: $6,200,000 Lot Size (SF): 740,520 Down Payment: $2,480,000 Lot Size (Acres): 17.0000 Down Payment %: 40% Lot Dimensions: 406' Frontage Zoning: COM

Subject Property

1 N Tennessee Blvd. @ Northfield Blvd. North Tennessee Blvd. @ Northfield Blvd. Murfreesboro, TN 37130

Close of Escrow: On Market Lot Size (SF): 696,960 List Price: $4,000,000 Price/SF: $5.74 Down Payment: $1,600,000 Lot Size (Acres): 16.0000 Down Payment %: 40% Price/Acre: $250,000 Zoning: COM Lot Dimensions:

Comments Available to the site: Electric, Gas, Sewer, Water.

2 Victory Station Parcel O 3863 Franklin Road Murfreesboro, TN 37128

Close of Escrow: On Market Lot Size (SF): 566,280 List Price: $6,795,000 Price/SF: $12.00 Down Payment: $2,718,000 Lot Size (Acres): 13.0000 Down Payment %: 40% Price/Acre: $522,692 Zoning: COM Lot Dimensions:

Comments This property is part of Victory Station's 250 acre PUD. Located on a new 5 lane state highway in the Murfreesboro area. Offsite improvements: Cable, Sidewalk, Electric, Gas, Sewer, Telephone, Water.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0480105 Marcus & Millichap. All rights reserved. 24 Shoppes of Middle Tennessee MURFREESBORO, TN ON MARKET COMPARABLES

ON MARKET COMPARABLES

3 Lebanon Road Development Site 4331 Lebanon Road Murfeesboro, TN 37129

Close of Escrow: On Market Lot Size (SF): 479,160 List Price: $3,990,000 Price/SF: $8.33 Down Payment: $1,995,000 Lot Size (Acres): 11.0000 Down Payment %: 50% Price/Acre: $362,727 Zoning: COM Lot Dimensions:

4 Development Memorial Blvd. Development's Site 2603 Memorial Boulevard Murfreesboro, TN 37129

Close of Escrow: On Market Lot Size (SF): 871,200 List Price: $6,800,000 Price/SF: $7.81 Down Payment: $2,380,000 Lot Size (Acres): 20.0000 Down Payment %: 35% Price/Acre: $340,000 Zoning: COM Lot Dimensions:

Comments Potential for owner financing.

Shoppes of Middle Tennessee MURFREESBORO , TN Shoppes of Middle Tennessee MURFREESBORO, TN MARKET OVERVIEW

NASHVILLE Market Highlights Music city ■ The music industry provides jobs and supports a large hospitality sector. Diversifying economy ■ Other major industries in the metro include healthcare, government, automotive, publishing, insurance and finance. Population growth ■ The population will increase at a faster pace than the nation over the next five years.

Geography

The Nashville metro is located in the north-central portion of the state of Tennessee, in what is known as the Central Basin. The area is underlain primarily by limestone from the Ordovician Period. The Cumberland River, which snakes through the region, adds to the local economic base and enhances Nashville’s quality of life.

Nashville-Davidson-Murfreesboro-Franklin, TN Metro

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0480105 Marcus & Millichap. All rights reserved. 27 Shoppes of Middle Tennessee MURFREESBORO, TN MARKET OVERVIEW

NASHVILLE Metro The Nashville metro, with a population of nearly 1.8 million, has 13 counties: Davidson, Smith, Macon, Williamson, Cheatham, Sumner, Dickson, Robertson, Cannon, Rutherford, Hickman, Trousdale, Maury and Wilson. Nashville, the capital city, is also the largest in the metro with 646,600 residents, followed by Murfreesboro.

Largest Cities in Metro by Population Infrastructure Nashville 646,600 Three major interstate highways intersect in Nashville, Murfreesboro 120,600 Franklin 69,300 I-40, I-24 and I-65. In addition, I-440 serves as an Hendersonville 55,100 inner beltway circling the city, and I-840 is an outer Smyrna 43,800 beltway. The region is home to numerous freight Brentwood 41,700 carriers and truck terminals. Airports ■ Nashville International Airport Air service to the region comes through the Nashville ■ General Aviation Airports International Airport and several general aviation Major Roadways facilities, including the John C. Tune and Smyrna ■ Interstates 24, 40, 65, 440 and 840 airports. Also, Nashville Air Cargo is an all-cargo ■ U.S. Routes 31, 41, 70 and 431 complex located at the Nashville International Airport. Rail ■ Freight - CSX The Port of Nashville, located on the Cumberland ■ Commuter - Music City Star Rail River, provides full river barge access to the Gulf of Port ■ Port of Nashville Mexico. CSX Transportation has a major intermodal The Nashville Metro is: rail yard servicing the Southeast U.S. located nearby. In ■ 210 miles from Memphis addition, the Music City Star, a passenger commuter ■ 249 miles from Atlanta rail, runs between the city of Lebanon and downtown ■ 290 miles from Indianapolis Nashville, and bus transit within the city is provided by ■ 310 miles from St. Louis the Metropolitan Transit Authority.

* Forecast Sources: Marcus & Millichap Research Services, U.S. Census Bureau, Experian

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0480105 Marcus & Millichap. All rights reserved. 28 Shoppes of Middle Tennessee MURFREESBORO, TN MARKET OVERVIEW

NASHVILLE Economy For many, country music and Nashville are synonymous. The metro is home to the Ryman Auditorium, Grand Ole Opry, Country Music Television and Music Row. Music and entertainment have helped to establish a large tourism industry. Facilities such as the Gaylord Opryland Resort & Convention Center, the Nashville Convention Center and the 1.2 million-square-foot Music City Center have all played a role in expanding the hospitality and tourism segment.

Although entertainment and tourism are vital to the local economy, the economic base is much more diverse. This is due, in part, to the area having one of the nation’s lowest overall tax burdens and the availability of incentives to attract relocating and expanding businesses. Other major industries in the metro include healthcare, higher education, finance and insurance, automobile production, printing and publishing, and technology manufacturing. There are six fortune 500 companies headquartered in the region: HCA Holdings, Dollar General, Community Health Systems, LifePoint Health, Delek US Holdings and Tractor Supply Co.

Institutions of higher learning in the metro include Middle Tennessee State University, Lipscomb University, Belmont University, Vanderbilt University and Tennessee State University. Education, healthcare and government employment help to diversify Nashville’s employment base. * Forecast Sources: Marcus & Millichap Research Services, Bureau of Economic Analysis, Moody’s Analytics, U.S. Census Bureau, Experian

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0480105 Marcus & Millichap. All rights reserved. 29 Shoppes of Middle Tennessee MURFREESBORO, TN MARKET OVERVIEW

NASHVILLE Labor After outperforming the national rate of job growth over the past 10 years, the Nashville metro is expected to maintain an elevated pace of growth through 2020. Many employment sectors that posted the most robust growth during the previous five years are now decelerating to a more sustainable pace, and all sectors except for manufacturing are forecast to expand during this period. The largest increase will be in construction, at an average pace of 5.3 percent annually in the coming five years.

Currently, the trade, transportation and utilities sector is the largest provider of regional jobs. These industries comprise 20 percent of Nashville’s entire employment base, or approximately 180,600 jobs. Many of these positions are in retail. The professional and business services sector makes up another major share of Nashville employment, representing about 16 percent of payrolls. While this sector registered impressive annual growth of approximately 6.8 percent throughout the previous five years, jobs in this sector are now forecast to expand by 3.5 annually. The education and health services segment comprises another 16 percent of employment. Demand for these services is expected to increase throughout the foreseeable future, as the metro continuously records population growth well above the national average.

Other employment segments that will register impressive gains through 2020are education and health services, leisure and hospitality, information and the financial activities sectors. All of these industries are expected to grow jobs at a pace in excess of 1 percent annually.

* Forecast Sources: Marcus & Millichap Research Services, BLS, Moody’s Analytics

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0480105 Marcus & Millichap. All rights reserved. 30 Shoppes of Middle Tennessee MURFREESBORO, TN MARKET OVERVIEW

NASHVILLE Employers The list of major employers in Nashville is dominated by education, healthcare and government entities. The state of Tennessee, the Metropolitan Nashville- Davidson County Government, which includes the public school system, and Vanderbilt University and Medical Center each account for nearly 20,000 jobs. St. Thomas Health Services, MedSolutions and HCA also contribute to the growing healthcare industry. Other large employers are financial and insurance companies, which employ tens of thousands of workers in the Major Employers metro. Major companies include American General Life Vanderbilt University and Medical Center Companies, Hylant Group, CNA, First Tennessee Kroger Bank, Sun Trust Bank, Primus Automotive Financial Community Health Systems Services and Asurion Insurance Services Inc. Saint Thomas Health Services Nissan North America Ryman Hospitality Properties, formerly Gaylord HCA Entertainment, is a large employer in the leisure and Ryman Hospitality Properties hospitality sector. The company operates the Grand Ole Electrolux Home Products Opry, the Ryman Auditorium and other venues. The Cracker Barrel Old Country Store, Inc. entertainment industry helped to spawn a large printing Randstad Staffing and publishing industry that focuses not only on country-western media, but Christian media as well. Large companies include the United Methodist Publishing House, Ingram Content Group and R R Donnelley & Sons Co.

Automobile production flourished when Nissan’s Smyrna Plant began operations. The headquarters for Nissan North American, Inc. moved to Franklin in 2006 and International Automotive Components, GM and Bridgestone are located in the region.

Zycron, Amazon and Emma are a few of the technology employers in the Nashville area that draws young * Forecast professionals to the region. Sources: Marcus & Millichap Research Services, BLS, Moody’s Analytics, Experian

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0480105 Marcus & Millichap. All rights reserved. 31 Shoppes of Middle Tennessee MURFREESBORO, TN MARKET OVERVIEW

NASHVILLE Demographics The Nashville metro population is expected to grow by more than 120,000 people over the next five years. The growth will come from both in-migration and natural increases, as the area has a large portion of families in their childbearing years. Accordingly, the median age, at 36.2 years, is below the U.S. median of 37.5 years. The number of residents in the 65-plus age bracket accounts for just 12 percent of the metro’s population, under the average for the country. This bodes well for Nashville’s future, as it illustrates the area’s large, available employment pool on the verge of their most successful earning years.

Nashville, which is home to more than 20 colleges and universities and is the state capital, has a higher level of education among residents than the national average. Approximately 30.2 percent of the local population older than age 25 have earned at least a bachelor’s degree, as opposed to 28.8 percent for the entire country. The metro also places high in education attainment when compared with many other Southeastern cities.

Elevated education levels often translate to higher incomes. The metro’s median household income has consistently tracks the nationwide median. Strong incomes and the relatively affordable median home price of $208,500 have afforded more than 65 percent of households to own their home.

* Forecast Sources: Marcus & Millichap Research Services, AGS, Experian, Moody’s Analytics, U.S. Census Bureau

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0480105 Marcus & Millichap. All rights reserved. 32 Shoppes of Middle Tennessee MURFREESBORO, TN MARKET OVERVIEW

NASHVILLE Quality of Life While music may be in Nashville’s blood, Music City has a lot more to offer, including performing arts, history, cuisine, professional sports, education institutions, natural beauty and Southern charm.

Music is alive not only at the Grand Ole Opry, but also at the Ryman Auditorium, Fontanel Mansion, Schermerhorn Symphony Center and the Tennessee Performing Arts Center. For country music fans, there is the Country Music Hall of Fame and Museum.

Performing arts include the Nashville Ballet, Nashville Symphony, Nashville Opera Association, Tennessee Repertory Theatre, Nashville Children’s Theatre and the ACT 1, Artists’ Cooperative Theatre.

Museums in the metro include the Tennessee State Museum, the Vanderbilt University Fine Arts Gallery, Frist Center for the Visual Arts, Cheekwood Botanical Garden & Museum of Art and the Carl Van Vechten Gallery at Fisk University.

Sports enthusiasts can watch the Tennessee Titans of the NFL, the NHL Nashville Predators and the Nashville Sounds, which are a member of baseball’s AAA Minor League.

For those who want to spend an afternoon outdoors, one can take in the Parthenon, the world’s only replica of the ancient Greek temple, which is located only 2 miles from downtown Nashville or Nashville Shores Water Park and Marina. * Forecast Sources: Marcus & Millichap Research Services, National Association of Realtors, Moodys Analytics, U.S. Census Bureau

The information contained in the market overview comes from sources deemed to be reliable, however, no representation, warranty or guarantee, express or implied, may be made as to the accuracy or reliability of the information contained herein. The most timely data available at time of production, including estimates and forecasts, were used and may be subject to revision.

Shoppes of Middle Tennessee MURFREESBORO , TN Shoppes of Middle Tennessee MURFREESBORO, TN DEMOGRAPHIC ANALYSIS

DEMOGRAPHIC REPORT 1 Mile 3 Miles 5 Miles 2000 Population 11,173 44,890 75,289 2010 Population 10,207 52,257 103,899 2014 Population 10,718 55,727 112,044 2019 Population 11,078 59,330 122,930

2000 Households 4,715 17,793 28,717 2010 Households 4,205 20,614 40,334 2014 Households 4,431 22,099 43,593 2019 Households 4,517 23,683 48,364

2014 Average Household Size 2.38 2.35 2.48

2014 Daytime Population 6,510 32,214 48,362

2000 Owner Occupied Housing Units 37.25% 37.07% 51.83% 2000 Renter Occupied Housing Units 55.16% 55.10% 40.95% 2000 Vacant 7.59% 7.84% 7.22%

2014 Owner Occupied Housing Units 36.02% 35.08% 52.93% 2014 Renter Occupied Housing Units 63.98% 64.92% 47.07% 2014 Vacant 10.68% 7.47% 4.92%

2019 Owner Occupied Housing Units 36.27% 34.44% 52.80% 2019 Renter Occupied Housing Units 63.73% 65.56% 47.20% 2019 Vacant 10.79% 7.31% 4.47%

$ 0 - $14,999 26.3% 22.2% 14.4% $ 15,000 - $24,999 17.1% 15.7% 11.1% $ 25,000 - $34,999 16.0% 13.8% 11.2% $ 35,000 - $49,999 13.7% 14.7% 13.9% $ 50,000 - $74,999 11.3% 14.1% 18.8% $ 75,000 - $99,999 7.8% 8.7% 13.3% $100,000 - $124,999 4.3% 5.3% 8.3% $125,000 - $149,999 0.9% 2.2% 3.9% $150,000 - $199,999 1.1% 1.7% 3.0% $200,000 - $249,999 0.6% 0.8% 1.0% $250,000 + 0.9% 1.0% 1.4%

2014 Median Household Income $28,890 $33,826 $49,429 2014 Per Capita Income $20,124 $20,851 $25,747

2014 Average Household Income $44,720 $50,405 $64,996

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0480105 Marcus & Millichap. All rights reserved. 35 Shoppes of Middle Tennessee MURFREESBORO, TN DEMOGRAPHIC ANALYSIS

SUMMARY REPORT

Geography: 5 miles Population

In 2014, the population in your selected geography is 112,043. The population has changed by 48.81% since 2000. It is estimated that the population in your area will be 122,929 five years from now, which represents a change of 9.71% from the current year. The current population is 49.38% male and 50.61% female. The median age of the population in your area is 30.1, compare this to the Entire US average which is 37.3. The population density in your area is 1,425.81 people per square mile.

Households There are currently 43,592 households in your selected geography. The number of households has changed by 51.80% since 2000. It is estimated that the number of households in your area will be 48,363 five years from now, which represents a change of 10.94% from the current year. The average household size in your area is 2.47 persons.

Income In 2014, the median household income for your selected geography is $49,428, compare this to the Entire US average which is currently $51,972. The median household income for your area has changed by 22.38% since 2000. It is estimated that the median household income in your area will be $61,674 five years from now, which represents a change of 24.77% from the current year.

The current year per capita income in your area is $25,746, compare this to the Entire US average, which is $28,599. The current year average household income in your area is $64,996, compare this to the Entire US average which is $74,533.

Race & Ethnicity The current year racial makeup of your selected area is as follows: 74.81% White, 15.72% Black, 0.05% Native American and 3.38% Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 6.14% of the current year population in your selected area. Compare this to the Entire US average of 17.13%.

Housing In 2000, there were 16,043 owner occupied housing units in your area and there were 12,673 renter occupied housing units in your area. The median rent at the time was $519.

Employment In 2014, there are 48,361 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 60.17% of employees are employed in white-collar occupations in this geography, and 39.75% are employed in blue-collar occupations. In 2014, unemployment in this area is 7.48%. In 2000, the average time traveled to work was 26.6 minutes.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0480105 Marcus & Millichap. All rights reserved. 36 Shoppes of Middle Tennessee MURFREESBORO, TN DEMOGRAPHIC ANALYSIS

POPULATION DENSITY

Number of people living in a given area per square mile.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0480105 Marcus & Millichap. All rights reserved. 37 Shoppes of Middle Tennessee MURFREESBORO, TN DEMOGRAPHIC ANALYSIS

EMPLOYMENT DENSITY

The number of people employed in a given area per square mile.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0480105 Marcus & Millichap. All rights reserved. 38 Shoppes of Middle Tennessee MURFREESBORO, TN DEMOGRAPHIC ANALYSIS

AVERAGE HOUSEHOLD INCOME

Average income of all the people 15 years and older occupying a single housing unit.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Y0480105 Marcus & Millichap. All rights reserved. 39 Shoppes of Middle Tennessee MURFREESBORO, TN DEMOGRAPHIC ANALYSIS

TRAFFIC COUNTS

* Traffic Count Estimate

Shoppes of Middle Tennessee MURFREESBORO , TN

OFFERING MEMORANDUM

Alan Treadway, Jr. Associate Director, National Retail Group Nashville Office License: TN: 00226652 Tel: (615) 997-2856 Fax: (615) 997-2910 [email protected] www.marcusmillichap.com/WilliamTreadway

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