OFFERING MEMORANDUM One West Court Square Two · 2018. 6. 22. · SUNTRUST BANKS, INC. – Founded...

180-198 West Ponce de Leon AvenueDecatur (Atlanta), Georgia 30030

OFFERING MEMORANDUM

One West Court Square Two

Table of Contents

01 EXECUTIVE SUMMARY Investment Highlights Investment Profile

02 PROPERTY OVERVIEW Property Information Property Aerials Site Plan Area Map

04 MARKET OVERVIEW Decatur, Georgia Demographics

05 FINANCIAL OVERVIEW Cash Flow Projections Reimbursement Expenses Pro-Forma Lease Expiration Analysis

INVESTMENT SALES TEAM

JASON POWELL, CCIM Vice President, Investment Sales 770.913.3952 [email protected]

SHEA MEDDIN Vice President, Brokerage 770.913.3992 [email protected]

ACKERMAN & CO. 10 Glenlake Parkway South Tower, Suite 1000 770.913.3900 | ackermanco.com

03 TENANT OVERVIEW Tenant Overviews Rent Roll

This Offering Memorandum and any subsequent evaluation material you may be

provided (collectively known as the “Offering Memorandum”) is intended solely for your

limited use in considering whether to pursue negotiations to acquire One West Court

Square Two (the “Property”) located in Decatur, Georgia. The Property is being marketed

for sale by Ackerman & Co. (“Broker”).

The Offering Memorandum contains brief, selected information pertaining to the

business and affairs of the Property and has been prepared by Broker. It does not,

however, purport to be all-inclusive or to contain all of the information that a prospective

purchaser may desire. Broker makes no representation or warranty, express or implied,

as to the accuracy or completeness of the Offering Memorandum or any of its contents,

and no legal liability is assumed to be implied with respect thereto.

By acknowledgment of your receipt of the Offering Memorandum you agree that the

Offering Memorandum and its contents are confidential, that you will hold and treat it

in the strictest of confidence, that you will not directly or indirectly disclose, or permit

anyone else to disclose, the Offering Memorandum or its contents to any other person,

firm, or entity (including, without limitation, any principal for whom you have been

engaged), without prior written authorization of Owner or Broker and that you will not

use or permit to be used the Offering Memorandum or its contents to be copied or

used in any fashion or manner detrimental to the interest of Owner. Photocopy or other

duplication is strictly prohibited.

THE OFFERING MEMORANDUM SHALL NOT BE DEEMED TO REPRESENT THAT STATE

OF AFFAIRS OF THE PROPERTY OR CONSTITUTE AN INDICATION THAT THERE HAS BEEN

NO CHANGE IN THE BUSINESS OR AFFAIRS OF THE PROPERTY SINCE THE DATE OF

PREPARATION OF THE OFFERING MEMORANDUM.

The information provided in the Offering Memorandum has been gathered from

sources that are deemed reliable, but the Broker does not warrant or represent that

the information is true or correct. Prospective offerors are advised to verify information

independently. The Offering Memorandum is not to be construed as an offer or as any

part of a contract to sell the property.

Furthermore, the inclusion or exclusion in the Offering Memorandum of information

relating to asbestos or any other hazardous, toxic or dangerous chemical item, waste

or substance (hereinafter collectively referred to as “Waste”) relating to the Property

shall in no way be construed as creating any warranties or representations, expressed or

implied by the Broker as to the existence or nonexistence or nature of Waste in, under

or on the Property, it may create significant legal and/or economic obligations upon the

Owner, lessee and/or other holders of interest in the Property or a part thereof and you

are hereby advised to obtain professional assistance such as from a consultant, engineer

and/or attorney prior to taking an interest in the Property or a part thereof.

INFORMATION NOT WARRANTED

EXECUTIVE SUMMARY Investment Highlights Investment Profile

01


5One West Court Square Two01 Executive Summary

One West Court Square TwoDecatur, Georgia 30030

Ackerman & Co’s Retail Investment Sales Team is pleased to exclusively present for sale a stabilized, retail strip center investment located in Decatur, GA (Atlanta).

Anchored by SunTrust and Chipotle, the 13,158-square-foot building is 100% leased and features a rent roll of three credit tenants. The property is located directly in the heart of Downtown Decatur, on the most prominent corner and in the center of the area’s major retail corridor, surrounded by retailers, o�ces and government buildings.

The property also features its own surface parking lot with more than 60 spaces, which is extremely rare for Downtown Decatur. The surrounding retail centers have sustained continually high occupancy rates due to the increasing amount of area growth, high o�ce and government building occupancy and heavy foot tra�c.

Investment Highlights

Proximity to Downtown Decatur – The subject property is located on the most prominent corner in Downtown Decatur and is less than one (1) mile from 12 major o�ce buildings where more than 10,000 daily employees work. DeVry University, with some 4,000 students, is also located just a couple hundred feet from the property.

INVESTMENT PROFILE

SQUARE FOOTAGE: 13,158 SF

ACREAGE: 1.1 acres

OFFERING PRICE: $8,320,000

DEBT STRUCTURE: Market, offered free and clear

RENT ESCALATIONS: Yes (see rent roll)

6One West Court Square Two01 Executive Summary

Stable Cash Flow with rent escalations – With 100% occupancy and multi-year lease terms, this asset should continue to provide an investor with stable cash flow. In addition, SunTrust has 2% annual base rental escalations, Cooks & Sherlock’s has 3% annual base rental escalations and Chipotle’s base rental escalates 10% in year 5. These escalations should provide a hedge against inflation and increase investor’s return.

Offered Free and Clear of Debt – This investment is offered free and clear of existing debt, thus enabling an investor to take advantage of low market interest rates available on new debt.

Mature Submarket – The subject property is surrounded by newer retail centers with high historical occupancy rates. The proximity to the downtown area and the lack of available land in the immediate area presents high barriers to entry with regard to competing retail tenants and developers entering the market.

Average Remaining Lease Term – The rent roll has limited amount of lease expiration exposure in the coming years. Both SunTrust and Chipotle (75.6% of NOI) have 10+ years of lease term remaining. The average remaining lease term on the current rent roll is approximately seven and a half (7.5) years.

Limited Mangerial Duties – With only three tenants, and 100% occupancy, this offering should require very minimal managerial work in the immediate future. Furthermore, the 2003 construction provides minimal exposure to capital expenditures.

Management / Admininstration fees – SunTrust has an annual management fee of 5% of all gross rental received in the entire Development ($29,056 in 2012) and Cooks has an annual 15% administrative fee on all expenses ($12,095 in 2012). This provides the Landlord with over $40,000 in additional income and should greatly exceed the cost of running/managing the property.

PROPERTY OVERVIEW Property Information Property Aerials Site Plan Area Map

02


02 Property Overview One West Court Square Two 8

PROPERTY INFORMATION

ADDRESS: 180-198 West Ponce de Leon Avenue,Decatur, Georgia 30030

PARCEL ID: 15-0246-04-059

COUNTY: DeKalb

METRO MARKET: Atlanta

ZONING: C-2

BUILDING SIZE: 13,158 SF

LAND AREA: 1.10 Acres

YEAR BUILT: 2003

CONSTRUCTION: Brick

PARKING: Approximately 60 dedicated parking spaces

SIGNAGE: Large exterior building signage on three sides. Additional monument sign at Commerce Drive and Swanton Way

NUMBER OF SPACES: 3

NUMBER OF TENANTS: 3

OCCUPANCY: 100% One West Court Square TwoDecatur, Georgia 30030


PROPERTY AERIAL

DECATURHIGH SCHOOL

FOOTBALL FIELD

DEKALB COUNTYPARKS & REC.

DEKALB COUNTYWATER & SEWER

DEKALB COUNTYTAX ASSESSOR

DECATUR BOARD OF EDUCATION

PAID PARKING

PAID PARKING

DEKALB COUNTYSUPERIOR COURT

RESIDENTIAL

OFFICE

RESIDENTIAL

OFFICE

OFFICE

OFFICEOFFICE

E Ponce de Leon Ave

Com

merce D

r

Church St

Commerce DrN

McD

onough St

W Trinity Pl

E Trinity Pl

Raging BurritoIberian PigBrick Store PubEddie’s Attic

DECATUR SQUARE

HDecatur HospitalC

lairmont Ave

W Ponce de Leon Ave

OFFICEOFFICEOFFICEOFFICEOFFICEOFFICEOFFICEOFFICE

RESIDENTIALRESIDENTIALRESIDENTIALRESIDENTIALRESIDENTIALRESIDENTIALRESIDENTIALRESIDENTIALONE WEST COURT SQUARE TWO180-198 W PONCE DE LEON AVEDECATUR, GEORGIA 30030

VIEW OF DOWTOWN DECATUR


PROPERTY AERIALCLOSE-UP AERIAL VIEW OF THE SITE

RESIDENTIALOFFICE

RESIDENTIAL

PAID PARKING

CUSTOMER PARKING

PAID PARKING

DEKALB COUNTYWATER & SEWER

W Ponce de Leon Ave

Swanton Way

Com

mer

ce D

r

Cla

irmon

t Ave

PARKINGPARKINGPARKINGPARKINGPARKINGPARKINGPARKINGPARKING

CUSTOMERCUSTOMERCUSTOMERPARKINGPARKINGPARKING

Com

mer

ce D

rC

omm

erce

Dr

Com

mer

ce D

rC

omm

erce

Dr

ONE WEST COURT SQUARE TWO180-198 W PONCE DE LEON AVEDECATUR, GEORGIA 30030

1,958 SF 6,100 SF 5,100 SF

3 Chipotle To-Go Parking Spaces

Grease Receptacle

GLA OF CENTER 13,158 SQUARE FEET

Trash/Waste

W Ponce de Leon Avenue

Swanton Way

Co

mm

erce

Dri

ve

SunTrustDrive-Thru


SITE PLAN – GLA of Center 13,158 Square Feet

ATM

ATM

400

1923

78

19

278

278

2313

154

VirginiaHighland

North Decatur

NorthDruid Hills

Decatur

AvondaleEstates

Clarkston

WestPeachtree Battle

NorthAtlanta

Ponce De Leon Ave S College Ave

Memori

al Dr

S

Can

dler

St

Clifton Rd

Scott B

lvd

Mor

elan

d Av

e

Pi

edm

ont R

d

Lavis ta Rd

Buford

Hwy

C

lairm

ont R

d

Cartersville

McDonough

Covington

Oxford

Conyers

Loganville

Dacula

Sugar Hill

Buford

FloweryBranchCumming

Alpharetta

F U LT O N

D E K A L B

B A R T O WH A L L

Lawrenceville

DowntownAtlanta

C O B B

Kennesaw

Decatur

113

41

400

675

78

Source: 2012 MPSI Systems Inc. d.b.a. DataMetrix®

TRAFFIC COUNTS – 10,348 VPD (AVG)

WEST PONCE DE AVE AND COMMERCE DR


North DecaturNorth DecaturNorth Decatur

DecaturDecaturDecatur

Scott Blvd

ONE WEST COURT SQUARE TWO180-198 W PONCE DE LEON AVEDECATUR, GEORGIA 30030

AREA MAP

TENANT OVERVIEW Tenant Summaries Rent Roll

03


03 Tenant Overview One West Court Square Two 14

TENANT SUMMARIES

SUNTRUST BANKS, INC. – www.suntrust.com

Founded in 1891 in Atlanta, GA, SunTrust Banks Inc. is one of the largest banks in the United States. The company has three different core business divisions: Consumer Banking and Private Wealth Management, Wholesale Banking, and Mortgage Banking. According to the most recent information from the United States Federal Reserve, SunTrust has over 1,665 branches and $172.5B billion in assets, making it the 17th largest financial institution in the United States. According to S&P Capital IQ, 29% of SunTrust’s total deposits come from the state of Georgia and 33% from the state of Florida. The SunTrust banking headquarters has remained in the founding city of Atlanta, GA. Since 2011, SunTrust has posted increasing revenue and earnings growth. As of 8/2013, SunTrust Banks Inc. holds a market capitalization of $18.98 billion and an S&P credit rating of BBB.

SunTrust Banks Inc. (NYSE: STI)S&P Rating: BBB Headquarters: Atlanta, GA Branch Locations: 1,665 Year Founded: 1891Employees: 26,778Market Capitalization: $18.98B (8/2013)

Chipotle Mexican Grill Inc. (NYSE: CMG)S&P Rating: NAHeadquarters: Denver, CO Store Locations: 1,410 Year Founded: 1993Employees: 37,310 Market Capitalization: $12.74B (8/2013)

CHIPOTLE MEXICAN GRILL, INC. – www.chipotle.com

Founded in 1993, Chipotle Mexican Grill Inc. owns and operates over 1,400 fast casual restaurants serving a menu of fresh Mexican cuisine. Originally established in Denver, Colorado, Chipotle now operates stores across the U.S., Canada, and parts of Europe. Chipotle has built a successful model by combining an attractive and appealing store with assembly line production and all natural ingredients. Chipotle has consistently outranked the competition in terms of quality and experience. In 2011, Consumer Reports ranked Chipotle as the best Mexican fast food chain. The company has continued to report strong earnings throughout their recent growth and expansion. Chipotle has posted increased year over year earnings dating back to 2003.


TENANT SUMMARIES, CONT.

THE COOK’S WAREHOUSE – www.cookswarehouse.com

Initially founded in 1995 in Atlanta, GA, The Cook’s Warehouse is an established gourmet cookware store and cooking school. They also sell high quality wine and beer. With four locations in a«uent parts of Atlanta: Midtown Atlanta, Brookhaven, Decatur, and East Cobb, The Cook’s Warehouse has established a successful business model offering Cooking classes, Cookware, Cutlery, Bakeware, Gourmet Coffee & Tea, Beer and Wine and other Cooking related products and services. They also offer a wide range of products through their online store and mail order catalog. The Cook’s Warehouse has gained national recognition as a retailer and a cooking school. In addition to other national publications, Creative Loafing has voted Cook’s as the “Best Place to Buy Kitchen Gadgets” 12 of the past 15 years, including 2012.

The Cook’s Warehouse (Private Company) S&P Rating: NA Headquarters: Atlanta, GAStore Locations: 4 Year Founded: 1995


RENT ROLL – as of January 1, 2014

TENANT NAME TYPE & SUITE NUMBER LEASE DATES & TERM

RENTABLE SF BLDG SHARE

RATE & AMOUNTPER YEAR

PER MONTH

CHANGES ON

CHANGESTO RENT ESCATLATIONS

DESCRIPTION OF OPERATING EXPENSEREIMBURSEMENTS

RENEWAL OPTIONS COMMENTS

SunTrust Banks, Inc. 190 West Ponce de Leon03.01.2014 - 02.29.2024*Tenant currently occupying - newly executed lease begins 03.01.2014

6,10046.36%

$47.50$289,750$24,145

Mar-2015Mar-2016Mar-2017Mar-2018Mar-2019Mar-2020Mar-2021Mar-2022Mar-2023

$48.48$49.42$50.41$51.42$52.44$53.49$54.56$55.65$56.77

Two percent (2%) annually beginning

03/01/2015

NN - Pro Rata Share None Landlord Obligations: Landlord shall keep the foundation, the roof and the exterior walls of the Premises (except (i) the ATM Facility and, (ii) subject to provisions, the Drive-Thru Facility,)

in good repair.

Tenant shall pay pro-rata share of all actual expenses. In addition, tenant shall reimburse owner five percent (5%) of total gross rents received from tenants in the development

as a management fee

Chipotle Mexican Grill, Inc. 198 West Ponce de Leon 01.01.2014 - 12.31.2023 *Tenant scheduled to complete build-out and open for business 01.01.2014

1,95814.88%

$42.25$82,725$6,893

Jan - 2019 $46.48 Ten percent (10%) increase in year five (5)

NN - Pro Rate Share Two (2) x Five (5) Year OptionsTen percent (10%) Rent Increases

Landlord Obligations: Landlord, at its sole cost and expense, shall maintain in good order, condition and repair (excluding

damage caused by Tenant), the life safety systems, if any, foundations, subflooring, footings, load bearing walls, all

unexposed plumbing, all structural elements of the Premises, all mechanical equipment not serving the Premises exclusively,

all heating ventilating and air conditioning equipment not serving the Premises exclusively, and the roof.

Tenant shall pay pro-rata share of expenses with the following exceptions: CAM will not increase by more than 5% per year

on a non-cumulative basis.

Tenant shall not be required to pay an administrative, management or other “mark-up” costs on such expenses.

CAM shall not include costs of capital expenditures.

The Cook’s Warehouse 180 West Ponce de Leon 01.01.2005 - 08.31.2016

5,10038.76%

$24.62$125,562$10,463

Sep-2014 Sep-2015

$25.36 $26.12

Three percent (3%) annual increses

NN - Pro-Rata Share None Landlord Obligations: Landlord shall, during the Term, keep, repair and maintain in good order and condition the following portions of the premises: the roof, exterior walls, foundation,

structural parts of the floor, any load-bearing structures, gutters and downspouts.

Tenant shall pay pro-rata share of expenses with a five percent (5%) annual cap on controllable expenses.

Total Occupied Square FeetTotal Available Square FeetTotal Property Square Feet

13,1580

13,158

100.0%0.00%

100.0%

MARKET OVERVIEW Decatur, Georgia Demographics

04


04 Market Overview One West Court Square Two 18

DECATUR, GEORGIA

The city of Decatur has a traditional small-town atmosphere and the sophistication and excitement of a college town--along with all the benefits of living in a major metropolitan area. Decatur’s friendly neighbors, tree-lined streets, great schools, parks and playing fields, libraries, colleges, and businesses all make the town a wonderful place to spend some time. Decatur is just minute east of downtown Atlanta, minutes west of Stone Mountain, and the MARTA rail station is located under our downtown square, so getting there is easy.

Decatur’s O¨ce and Retail Market

Downtown Decatur consists of 12 major o�ce buildings (90,000 SF or larger), 10 mid-sized o�ce buildings (20,000 - 50,000 SF) and dozens of smaller ones (2,000 - 19,999 SF) as well as hundreds of retail stores, restaurants and bars.

Decatur has grown from a small market to a booming market over the past decade is now home to many national tenants, large businesses and houses many government agencies. Decatur is very much a self-sustainable retail market. Employees tend to only eat lunch at places they can walk to from their o�ce and night time diners tend to head to Decatur early for dinner before staying in and walking around the surrounding area for the rest of the night.

Downtown Decatur, Georgia

SELECT DECATUR RETAILERS AND RESTAURANTS

CVSAT&TMcDonald’sKrogerHoliday InnStarbucksFidelity BankBig Tex CantinaEddie’s AtticFarm BurgerFellini’s Pizza

FigoThe Iberian PigJ. Christopher’sLeon’s Full ServicePiece of CakeThe Pita PitRaging BurritoTaco MacTaqueria del SolTed’s Montana Grill


DECATUR, GEORGIA, CONT.

Decatur employees, primarily concentrated in the downtown commercial district, also represent an important demographic category in our community. Emory University, Agnes Scott College and DeKalb County are among our top employer groups with the professional and service sectors well represented. Demographics

The average household income in Decatur is $82,406 (Metro Atlanta is $76,883). The per capita income in Decatur is 31 percent higher than in Metro Atlanta. Twenty-one percent of the population is under 18. Twelve Percent is older than 65 and the median age of the population is 38 years old. The services and public administration industry sector comprise 82 percent of all jobs.

INCOME

DECATUR METRO ATLANTA U.S.

Average Household $82,406 $76,863 $66,670

Per Capita $37,130 $28,239 $25,495

INDUSTRY

DECATUR METRO ATLANTA

Retail Trade 7% 22%

Finance/Insurance/Real Estate 4% 8%

Services 29% 37%

Public Administration 53% 6%

Other 7% 27%

Source: Claritas, Market + Main, Inc., U.S. Census Bureau


DECATUR, GEORGIA, CONT.

Source: Claritas, Market + Main, Inc., U.S. Census Bureau

DETAILED DEMOGRAPHICS 1 MILE 3 MILES 5 MILES

2012 Population 14,561 100,480 310,285

2017 Projected Population 14,980 100,911 312,478

2000 Census Population 13,336 100,689 312,096

1990 Census Population 12,122 96,389 282,067

Growth 2000 - 2012 9.19% (0.21%) (0.58%)

Growth 2012 - 2017 2.88% 0.43% 0.71%

2012 Median Age 39.13 36.09 35.41

2012 Households 6,704 44,709 139,403

2017 Projected Households 6,899 45,196 142,690

2000 Census Households 6,168 42,940 130,470

1990 Census Households 5,804 39,639 116,247

Growth 2000 - 2012 8.69% 4.12% 6.85%

Growth 2012 - 2017 2.91% 1.09% 2.36%

2012 Average Household Size 2.09 2.13 2.13

2012 Median Household Income $59,522 $49,985 $48,506

2012 Average Household Income $82,371 $71,892 $69,458

2012 Per Capita Income $38,585 $32,330 $31,701

2012 Housing Units 6,704 44,709 139,403

2012 Owner Occupied Units 59.50% 56.77% 52.99%

2012 Renter Occupied Units 40.50% 43.23% 47.01%

FINANCIAL OVERVIEW Cash Flow Projections Projected Expenses Pro-Forma Lease Expiration Analysis

05


05 Financial Overview One West Court Square Two 22

CASH FLOW PREDICTIONS – Fiscal Year | January 1, 2014

CALENDAR YEAR 2014 2015 2016[1] 2017 2018 2019 2020 2021 2022 2023

Potential Gross Revenue

Base Rental Income $499,295 $508,895 $518,724 $528,790 $539,097 $557,934 $568,743 $579,812 $591,147 $602,757

Miscellaneous Income $124,815 $127,312 $129,858 $132,454 $135,104 $137,805 $140,564 $143,374 $146,240 $149,165

GROSS SCHEDULED INCOME $624,110 $636,207 $648,582 $661,244 $674,201 $695,739 $709,307 $723,186 $737,387 $751,922

GROSS OPERATING INCOME $624,110 $636,207 $648,582 $661,244 $674,201 $695,739 $709,307 $723,186 $737,387 $751,922

Expenses

Building Insurance ($3,060) ($3,121) ($3,184) ($3,247) ($3,312) ($3,378) ($3,446) ($3,515) ($3,585) ($3,657)

Grounds Maintenance/Irrigation ($1,133) ($1,156) ($1,179) ($1,202) ($1,226) ($1,251) ($1,276) ($1,301) ($1,327) ($1,354)

General Maintenance/Repairs ($6,921) ($7,059) ($7,201) ($7,345) ($7,492) ($7,641) ($7,794) ($7,950) ($8,109) ($8,271)

Management Fees ($41,151) ($41,974) ($42,814) ($43,670) ($44,543) ($45,434) ($46,343) ($47,270) ($48,215) ($49,179)

Building Maintenance ($1,322) ($1,348) ($1,375) ($1,403) ($1,431) ($1,460) ($1,489) ($1,519) ($1,549) ($1,580)

Electrical Repairs ($340) ($347) ($354) ($361) ($368) ($375) ($383) ($391) ($398) ($406)

Tax Consulting Fees ($750) ($765) ($780) ($796) ($812) ($828) ($845) ($862) ($879) ($896)

Taxes - Real Estate ($55,245) ($56,350) ($57,477) ($58,626) ($59,799) ($60,995) ($62,215) ($63,459) ($64,728) ($66,023)

Garbage ($3,225) ($3,290) ($3,355) ($3,422) ($3,491) ($3,561) ($3,632) ($3,705) ($3,779) ($3,854)

Utilities ($2,423) ($2,471) ($2,521) ($2,571) ($2,623) ($2,675) ($2,729) ($2,783) ($2,839) ($2,896)

Landscaping ($5,926) ($6,045) ($6,165) ($6,289) ($6,414) ($6,543) ($6,674) ($6,807) ($6,943) ($7,082)

Misc. Admin Expense ($291) ($297) ($303) ($309) ($315) ($321) ($328) ($334) ($341) ($348)

Life Support System ($3,028) ($3,089) ($3,150) ($3,213) ($3,278) ($3,343) ($3,410) ($3,478) ($3,548) ($3,619)

TOTAL OPERATING EXPENSES ($124,815) ($127,312) ($129,858) ($132,454) ($135,104) ($137,805) ($140,564) ($143,374) ($146,240) ($149,165)

NET OPERATING INCOME $499,295 $508,895 $518,724 $528,790 $539,097 $557,934 $568,743 $579,812 $591,147 $602,757

NET CASH FLOW (b/t) $499,295 $508,895 $518,724 $528,790 $539,097 $557,934 $568,743 $579,812 $591,147 $602,757

Projected Cash on Cash Return (b/t) 6.00% 6.12% 6.23% 6.35% 6.48% 6.70% 6.83% 6.97% 7.10% 7.24%

*Estimated expenses to grow by 2% annually[1] Analysis assumes Cook’s renews their lease in 8.2016 with current escalation structure[1] Analysis assumes Cook’s renews their lease in 8.2016 with current escalation structure


CAM Total (Reimburseable)Utilities $2,423Garbage $3,225General Maint & Repairs $6,921Irrigation $1,133Building Maintenance $1,322Life Support System $3,028Electrical Repairs $340Misc. Admin Expense $291Tax Consultant Fees $750

Management + Admin Fees $41,151($29,056 SunTrust &

$12,095 Cook’s)

Landscaping Contractor $5,926TOTAL $66,510

TaxesTOTAL $55,245

InsuranceTOTAL $3,060

One West Courst Square TwoOne West Courst Square TwoOne West Courst Square Two

SunTrust CAM (PRS) + Mgmt Fee*

$40,812

46.36% Taxes (PRS) $25,612Insurance (PRS) $1,418.62

Total Projected Expense Reimbursements $67,843

Cook’s Warehouse CAM** (PRS) + Admin Fee***

$21,924

38.76% Taxes (PRS) $21,413Insurance (PRS) $1,186.06

Total Projected Expense Reimbursements $44,523

Chipotle CAM**** (PRS) $3,77314.88% Taxes (PRS) $8,220

Insurance (PRS) $455.33Total Projected Expense

Reimbursements $12,449

Total Projected Expense Reimbursement (2014) $124,815

Total Projected Expense Reimbursement (2014) $124,815

* SunTrust pays 5% management fee on the total gross rents received from tenants in the Development** 5% annual Cap on controllable OPEX*** Cook’s pays 15% administration fee - Calculated at 15% of every category after mangement fee is removed**** CAM will not increase by more than 5% per year on a non-cumulative basis

PROJECTED EXPENSES


TENANT BASE RENT EXPENSE REIMBURSEMENT ESTIMATES

SunTrust $289,750 $67,843Chipotle $82,716 $12,449Cooks & Sherlocks $126,820 $44,523TOTAL $499,286 $124,815

ANNUALIZED INCOME Actual

Gross Potential Rent $499,286 Reimbursements $124,815 Effective Gross Income $624,101 Less: Expenses ($124,815)

NET OPERATING INCOME $499,286

ANNUALIZED EXPENSES Actual 2012

Utilities $2,423 Garbage $3,225 General Maintenance Repairs $6,921 Irrigation $1,133 Building Maintenance $1,322 Life Support System $3,028 Electrical Repairs $340 Management Fees $41,151 Landscaping $5,926 Misc. Admin Expense $291 Tax Consulting Fees $750 Real Estate Taxes $55,245 Property Insurance $3,060

TOTAL EXPENSES $124,815

OFFERING PRICE: $8,320,000

PRO-FORMA

TENANT ANNUAL SCHEDULED INCOME – YEAR BEGINNING 01.01.2014

0

10%

20%

30%

40%

1 3 6 102 5 94 87 11YEAR

70%

80%

90%

100%

50%

60%

PERCENTAGE EXPIRED SPACE PERCENT OF EXPIRED BASE RENT


LEASE EXPIRATION ANALYSIS

© 2013 Ackerman & Co. All rights reserved.

FOR MORE INFORMATION, PLEASE CONTACT:

JASON POWELL, CCIM Vice President, Investment Sales 770.913.3952 [email protected]

SHEA MEDDIN Vice President, Brokerage 770.913.3992 [email protected]

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