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