CAPITAL MARKETS | NET LEASE INVESTMENT | OFFERING MEMORANDUM PETSUITES OF AMERICA 2311 JOHN HAWKINS PARKWAY HOOVER, ALABAMA PETSUITES | 2511 JOHN HAWKINS PKWY, HOOVER, AL EXECUTIVE SUMMARY OFFERING MEMORANDUM EXECUTIVE SUMMARY The Offering Investment Highlights Qualified investors are extended the opportunity to acquire a 100.0% fee simple interest in Original 20 Year Lease a new 20 year absolute net lease PetSuites located in the core of a dominant trade area in • 20 year original absolute net lease with contractual CPI rental increase every 5 years. Hoover, Alabama. Construction began in early 2020 with rent commencement in late 2020. High Growth Sector Fully guaranteed by NVA Holdings, Inc., the original lease term is twenty (20) years with • According to Forbes, there are now more pet-owning households than there are those no termination rights and CPI rental increases each 5 years. The lease has no landlord with children: 84.6 million compared to 52.8 million. responsibilities; the offering is a completely passive real estate investment. • In 2018, US spending on pets reached $72.1 billion, up 8.1% from 2016. The site is strategically positioned along the major five-lane road, John Hawkins Parkway. • Animal adoption through Q2 in 2020 is at record highs. John Hawkins Pkwy (over 35,000 VPD in front of site) extends from Hoover’s central trade district westward and runs parallel to I-459, providing services to those commuting in and Service-Based Retail out of Hoover. Hoover has long been a retail hub for the Birmingham-Hoover Metro Area • Completely resistant to e-commerce, PetSuites is entirely service-based and not and for the larger region. Birmingham has rolling topography, and as a result there are dependent upon the sale of any pet supplies or soft goods. few thoroughfares that carry traffic across the ridgelines (Red Mountains). John Hawkins Pkwy is one such road. This, coupled with convenient access to I-59 & I-459 positions this About National Veterinary Associates (NVA) site very well in the market. The site is located directly in front of the affluent Lake Crest • NVA was founded in 1996 and now includes over 670 veterinary hospitals and over 70 subdivision, near The Grove Shopping Center (Target, Kohl’s, At Home, Marshall’s) and the pet resorts in in 43 states. NVA employs over 2,500 veterinarians and over 4000 staff Hoover YMCA, and about 1 mile from I-459 exit 10. members. In June 2019, JAB Holding Co. agreed to buy a majority stake in NVA. Hoover, AL is a continuously growing suburban city, offering key services and support to the Prime Real Estate greater Birmingham MSA. It maintains an excellent housing inventory and a healthy retail • The site offers visibility and immediate access with full cuts to John Hawkins Blvd which trade area that provides goods and services for the over 85,000 people that live within carries over 35,000 vehicles per day. The property is located directly in front of the the city limits. It is positioned strategically just south of Birmingham, AL, with convenient affluent Lake Crest subdivision, near The Grove Shopping Center (Target, Kohl’s, At access via I-65, and acts as a “gateway” to Birmingham from further southern MSAs, such Home, Marshall’s), the Hoover YMCA, and is in close proximity to Robert Trent Jones as Montgomery and Mobile. Golf Resort (host to Senior PGA Tour events). Desirable Demographics • Over 85,000 people live within Hoover, AL city limits. Hoover is an affluent community Sales Terms that has an average household income of over $112,000, and is among the top 10 The property is being offered on an “as-is” basis with ownership making no representations wealthiest Alabama communites. or warranties with respect to the accuracy or completeness of the offering memorandum Birmingham, AL MSA or any and all documents delivered to any acquisition prospect for the purpose of due • The Birmingam, AL MSA is the largest in the state of Alabama with a population of diligence. approximately 1,140,300. 502.426.1050 | HOGANDEV.COM 5 PETSUITES | 2511 JOHN HAWKINS PKWY, HOOVER, AL OFFERING MEMORANDUM TENANT PROFILE PetSuites of America, a growing national pet resort, spa, and daycare chain, specializes in the boarding and grooming of dogs and cats. They currently have 70 locations in the United States, which include sites in Florida, Georgia, Indiana, Kentucky, Louisiana, North Carolina, Ohio, South Carolina, Texas, and Virginia. PetSuites has spent over 15 years developing and perfecting an enriching and healthy environment for beloved family pets. Their daycare provides two different programs for dogs, DayBoarding and DayPlay. DayBoarding is designed for more “people oriented” dogs, while DayPlay is great for social dogs who love to play with other canines. The daycare at PetSuites has a 4-level “kitty condo” which is perfect for climbing, jumping, and napping. All daycare services include feeding and individual play times. Their boarding services are all inclusive resorts, providing your dog or cat with a full day of meals, playtimes, and naps. They even provide your pets with housekeeping services ensuring a clean and sanitary environment. PetSuites premium spa packages are a great way for your furry friend to get pampered and leave looking and feeling their very best. Every PetSuites bath includes a nail trim, ear cleaning, and a full-service bath with premium shampoo. Add-on services such as de-shedding, dental treatments, and more are available upon request. PetSuites of America National Veterinary Associates, Inc. Founded 1999 Founded 1996 Locations Over 70, with 32 under PetSuites d/b/a Locations 500 ± Locations Headquarters Aguora Hills, California Areas Served United States (41 states) and Four Countries Guarantor NVA Holdings, Inc. Headquarters Aguora Hills, California Website www.petsuitesofamerica.com Website www.nva.com Founded in 1999, PetSuites is a pet boarding, daycare, and grooming facility for dog and cat owners seeking the cleanest facilities and most professional care available for their pets. Pets are provided resort-style suites with scheduled playtime and attention as requested by their owner, making daycare and extended care as comfortable as possible for both. Supported and owned by National Veterinary Associates, Inc. (NVA), the industry is experiencing major growth as pet ownership in America is at an all-time high, with double digit year over year growth. NVA is one of the world’s largest veterinary and pet care companies. It is the owner-operator of more than 670 veterinary hospitals and pet resorts in 43 states, as well as Canada, Australia, and New Zealand. NVA employs over 2,500 veterianarians and 4,000 other staff members. In June 2019 JAB Holding Co. agreed to buy a majority stake in NVA. JAB Holding Co. is owned by the Reimann family, one of the wealthiest in the world, according to Forbes. The company has a controlling interest in several companies such as Panera Bread, Krispy Kreme, Caribou Coffee, Dr. Pepper, Snapple, and many others. 502.426.1050 | HOGANDEV.COM 6 PETSUITES | 2511 JOHN HAWKINS PKWY, HOOVER, AL OFFERING MEMORANDUM AREA MAP 502.426.1050 | HOGANDEV.COM 8 PETSUITES | 2511 JOHN HAWKINS PKWY, HOOVER, AL OFFERING MEMORANDUM REPRESENTATIVE FACILITY PHOTOGRAPHS 502.426.1050 | HOGANDEV.COM 9 PETSUITES | 2511 JOHN HAWKINS PKWY, HOOVER, AL TRADE AREA AERIAL OFFERING MEMORANDUM 502.426.1050 | HOGANDEV.COM 10 PETSUITES | 2511 JOHN HAWKINS PKWY, HOOVER, AL SITE AERIAL OFFERING MEMORANDUM 502.426.1050 | HOGANDEV.COM 11 PETSUITES | 2511 JOHN HAWKINS PKWY, HOOVER, AL PROPOSED SITE RENDERING OFFERING MEMORANDUM 502.426.1050 | HOGANDEV.COM 12 PETSUITES | 2511 JOHN HAWKINS PKWY, HOOVER, AL OFFERING MEMORANDUM DEMOGRAPHICS Population 1 MILE 3 MILES 5 MILES 2019 Population 4,319 31,344 88,183 2024 Population 4,504 32,694 91,680 2019-2024 Annual Rate 0.84% 0.85% 0.78% Households 1 MILE 3 MILES 5 MILES 2019 Total Households 1,607 11,463 34,196 2024 Total Households 1,677 11,928 35,415 2019-2024 Annual Rate 0.86% 0.80% 0.70% Household Income 1 MILE 3 MILES 5 MILES 2019 Average Household Income $151,439 $132,255 $106,290 4.3K 0.84% Annual Growth population population (1 mile) $151K (1 mile) avg. HH inc. (1 mile) 502.426.1050 | HOGANDEV.COM 14 PETSUITES | 2511 JOHN HAWKINS PKWY, HOOVER, AL OFFERING MEMORANDUM BIRMINGHAM MSA MARKET OVERVIEW Metro Birmingham Area The Birmingham metropolitan area, industry. The University of Alabama at sometimes known as Greater Birmingham, Birmingham (UAB) is Alabama’s largest is a metropolitan area in north central employer as well as the area’s largest, with Alabama centered on Birmingham, some 20,000 employees. The area is world Alabama. headquarters for Regions Financial, and Books-A-Million, the second largest book As of 2013, the federal government retailer in the United States. defines the Birmingham–Hoover, AL Metropolitan Statistical Area as consisting Greater Birmingham is at the convergence of seven counties (Bibb, Blount, Chilton, of four major interstate highways: Interstate Jefferson, St. Clair, Shelby, and Walker) 65 (which connects with Mobile and centered on Birmingham. The population Chicago); Interstate 20 (which connects of this metropolitan statistical area as of with Dallas and Atlanta); Interstate 59 the 2010 census was 1,130,047, making (which connects with New Orleans and it the 49th largest metropolitan statistical Chattanooga); and Interstate 22 (which area in the United States as of that date. connects with Memphis). Interstate 459, According to the United States Census completed in 1984, forms a southern 2013 estimate, the metro area has a bypass around Birmingham. It runs through population of 1,140,300. portions of Bessemer, Vestavia Hills, and Trussville, and forms a main route through The economy of Greater Birmingham is the the primary city of Hoover.