OFFERING MEMORANDUM Charlotte, NC Walmart Neighborhood Market CHARLOTTE | NORTH CAROLINA ™ 1 | Table of Contents TABLE OF CONTENTS 03 EXECUTIVE OVERVIEW 04 FINANCIAL OVERVIEW 06 PROPERTY OVERVIEW 14 AREA OVERVIEW JOSH BISHOP CALVIN SHORT ARON CLINE VP & DIRECTOR | LIC # 688810 (TX) SVP & SENIOR DIRECTOR SVP & SENIOR DIRECTOR CHAD KURZ DIRECT (949) 432-4506 DIRECT (949) 432-4509 SVP & NATIONAL DIRECTOR | LIC # 01911198 (CA) MOBILE (310) 567-3525 MOBILE (818) 632-0233 [email protected] [email protected] BROKER OF RECORD LIC # 01927216 (CA) LIC # 01904371 (CA) KYLE MATTHEWS LIC # C27092 (NC) | 2 ExecutiveCharlotte, Overview NC Investment Highlights » Absolute NNN ground lease – ± 18.75 years remaining and zero landlord » Strategically located offI-485 (89,000 VPD) and Tryon Street (34,000 VPD) – responsibilities High traffic counts » Lease secured by one of the most dominant and recognizable retail » Average Household Income is $74,623 within a 1-mile radius and $67,702 operators in the world – Investment grade credit tenant with an AA rating by within a 5-mile radius Standard & Poor’s » Located 11 miles from Downtown Charlotte; 3 miles from the University » Walmart (NYSE:WMT) - serving more than ±245 million customers each week. of North Carolina at Charlotte; Down the street from Charlotte Motor Walmart has approximately 11,600 stores throughout 28 countries. In 2016 Speedway; & 20 miles from Charlotte Douglas International Airport Walmart achieved net sales in excess of $482 Billion » Charlotte is the largest city in North Carolina and the second largest Banking » High-quality construction – Property was built in 2016 to be up to date with Center in the entire country. The city of Charlotte has become a major U.S. Walmart’s prototype with a pharmacy drive-thru financial center with the third most banking assets after New York and San » Densely populated area with robust demographics – The area has had Francisco approximately 14% growth within a 3-mile radius and approximately 24% » Charlotte is the 17th largest U.S city with a population of 772,672, making within a 5-mile radius over the past 8 years it the largest city in the region. It has emerged as a financial, distribution, and » Located next door to Pavilion Apartments a 4-star complex that was recently transportation center for the entire urban region. In addition, Charlotte has built with over 294 units and 460 residents. Across the street is another 4-star developed into a major wholesale center with the highest per capita sales in complex with over 296 units and 530 residents. Over 2,947 homes are located the United States behind the subject property which has over 9,111 residents 3 | FinancialExecutive Overview Overview | 4 Charlotte, NC Annualized Operating Data Monthly Rent Annual Rent Cap Rate Year 1-20 $31,833.33 $382,000.00 4.65% Option 1 $33,425.00 $401,100.00 4.88% Option 2 $35,096.25 $421,155.00 5.13% Option 3 $36,851.06 $442,212.75 5.38% Option 4 $38,693.62 $464,323.39 5.65% Option 5 $40,628.30 $487,539.56 5.93% Option 6 $42,659.71 $511,916.53 6.23% Option 7 $44,792.70 $537,512.36 6.54% Tenant Summary Investment Summary Tenant Trade Name Walmart Type of Ownership Ground Lease » LIST PRICE $8,215,000 Lease Guarantor Corporate Lease Type NNN » NOI (YEAR 1) $382,000 Roof and Structure Tenant Responsibility Term Remaining on Lease ± 18.75 Years » CAP RATE (YEAR 1) 4.65% Original Lease Term 20 Years » TOTAL BUILDING AREA ± 97,269 SF Lease Commencement Date 11/16/2016 Rent Commencement 11/16/2016 » TOTAL LAND AREA ± 2.23 Acres Lease Expiration Date 11/16/2036 Increases 5.00% Increases in Options Options Seven, 5-Year Options 5 | Property Overview The Offering Tenant Overview PROPERTY NAME Walmart » Company Name » Year Founded » Headquarters Property Address 11530 N. Tryon Street Walmart 1962 Bentonville, AR Charlotte, NC 28262 » Ownership » Industry » S&P Credit Rating SITE DESCRIPTION Public Big Box AA Number of Stories One Walmart Neighborhood Markets were designed in 1998 as a smaller-footprint option for communities in need of a Year Built 2016 pharmacy, affordable groceries, and merchandise. Each store is approximately 38,0000 square feet and employs up to 95 GLA ±41,201 SF associates, Walmart Neighborhood Markets offer fresh produce, meat, and dairy products, bakery and deli items, household Lot Size ±2.23 AC (97,269 SF) supplies, health and beauty aids, and a pharmacy. Type of Ownership Ground Lease Landscaping Professional Topography Generally Level $22.4 B 2.1 M 11,695 + Sales Volume Team Members Locations Worldwide | 6 Charlotte, NC ARWEN VISTA APARTMENT HOMES 4-STAR COMPLEX ± 296 UNITS ± 530 RESIDENTS TRYON STREET ± 34,000 VPD FUTURE RETAIL REDEVELOPMENT LIMITED TO 2 BUILDINGS, EACH NOT TO EXCEED 6,000 SF PAVILION VILLAGE APARTMENTS 4-STAR COMPLEX ± 294 UNITS ± 460 RESIDENTS 7 | Site Plan D LIMITED TO 2 BUILDINGS, EACH NOT TO EXCEED 6,000 SF V L B N O I L I V A P | 8 Charlotte, NC 9 | Location 3 10 Miles 3 Miles 1 Mile 4 2 1 1 2 3 4 DISTANCE TO: DOWNTOWN CHARLOTTE UNC AT CHARLOTTE CHARLOTTE MOTOR SPEEDWAY PNC MUSIC PAVILION ±11 MILES ±2.5 MILES ±2 MILES ±0.5 MILES North | 10 Charlotte, NC 11 | Charlotte, NC | 12 Charlotte, NC 13 | Area OverviewExecutive Overview Demographics POPULATION 1 - MILE 3 - MILE 5 - MILE 2023 Projection 7,254 65,370 190,910 2018 Estimate 6,531 58,323 172,071 2010 Census 6,201 51,400 138,829 Growth 2018-2023 11.06% 12.08% 10.95% Growth 2010-2018 5.32% 13.47% 23.95% HOUSEHOLDS 1 - MILE 3 - MILE 5 - MILE 2023 Projection 2,610 22,921 72,253 2018 Estimate 2,367 20,556 65,515 2010 Census 2,252 18,383 52,480 Growth 2018-2023 10.27% 11.51% 10.29% Growth 2010-2018 5.13% 11.82% 24.84% INCOME 1 - MILE 3 - MILE 5 - MILE 2017 Est. Average $74,623 $59,548 $67,702 Household Income | 14 Charlotte, NC Charlotte, North Carolina Charlotte is the largest city in North Carolina and the second largest Banking Center in the country. It is known for being a world-class city through a variety of art, science, and historical attractions, all while retaining its small-town charm. Referred to as the Queen City, Charlotte is the home of NASCAR and the Charlotte Motor Speedway. 90 percent of the NASCAR Sprint Cup Series teams are headquartered within 50 miles of Charlotte. The quality of life enjoyed by residents of Metropolitan Charlotte is an important factor in the tremendous growth of the city and surrounding rural acreage. An undisputed hub for entertainment and culture, the city draws regional audiences to performances and events at the North Carolina Blumenthal Performing Arts Center and other venues. Recreational opportunities are abundant from Atlantic Ocean water and whitewater rafting at the U.S. National Whitewater Center to roller coasters at Carowinds and hiking in one of the many surrounding national parks and reserves. » PNC Music Pavilion - PNC Music Pavilion is a fantastic outdoor music venue in Charlotte, North Carolina. Formerly known as Verizon Wireless Amphitheatre and originally called Blockbuster Pavilion, it is famous around Charlotte and the state for its outstanding live music. The venue originally opened on July 4, 1991,0 and has a large capacity of 18,768 making it the perfect place for summertime concerts. Found on Pavilion Boulevard located in the University City neighborhood, the amphitheatre is in a prime location for live concerts featuring artists and bands in many different music genres, as well as tours such as The Vans Warped Tour and Ozzfest. » Charlotte Motor Speedway - Charlotte Motor Speedway is a motorsports complex located in Concord, North Carolina 13 mi from Charlotte. The complex features a 1.5 mi quad oval track that hosts NASCAR racing including the prestigious Coca-Cola 600 on Memorial Day weekend, the NASCAR All-Star Race, and the Bank of America 500. The speedway was built in 1959 by Bruton Smith and is considered the home track for NASCAR with many race teams located in the Charlotte area. The facility is considered one of the busiest sports venues in the country, typically with over 380 events a year. Along with many races, the speedway also hosts the Charlotte Auto Fair twice a year, one of the nation’s largest car shows. 15 | Area Overview University of North Carolina, Charlotte The University of North Carolina at Charlotte, also known as UNC Charlotte, is a public research university located in Charlotte, North Carolina and with more than 29,000 students, UNC Charlotte is the third largest university in the state system. The University offers 23 doctoral, 64 masters’, and 140 bachelor’s degree programs through nine colleges: the College of Arts + Architecture, the College of Liberal Arts & Sciences, the Belk College of Business, the College of Computing and Informatics, the Cato College of Education, the William States Lee College of Engineering, the College of Health and Human Services, the Honors College, and the University College. UNC Charlotte is the largest institution of higher education in the Charlotte region and has experienced rapid enrollment growth of 33.4% over the past 10 years, making it the fastest-growing institution in the UNC System, and contributing to more than 50% of the system’s growth since 2009. 29,317 STUDENTS 64 MASTERS’ DEGREE PROGRAMS 3,495 FACULTY AND STAFF | 16 Charlotte, NC Charlotte Economy Charlotte has become a major U.S. financial center with the third most banking assets after New York City and San Francisco.