No warranty or representation is made to the accuracy of ...

INVESTMENT OPPORTUNITY WITH MAJOR UPSIDE

Lee & Associates Commercial Real Estate Services - NSDC, Inc. ? 1900 Wright Place ? Suite 200 ? Carlsbad, CA 92008 ? P: (760) 929-9700 ? F: (760) 929-9977 In Cooperation with Larsen Commercial Real Estate Services, Inc.

No warranty or representation is made to the accuracy of the foregoing information. Terms of sale, lease and availability are subject to change or withdrawal without notice.

HARBOUR VIEW MARKETPLACE

Lifestyle Retail Center Investment & Development Opportunity

7386 & 7394 Harbour Towne Parkway & 5860 Harbour View Boulevard, Suffolk, VA 23435

Prepared By: Garrett Sholer, Vice President gsholer@lee-

Cell: 949.722.7227 Office: 760.929.9700

CalBRE Lic # 01172325

? Createa9%CAPand15%+CashFlowthroughfurthersitedevelopmentof approx. 100,000 additional sq. ft.

? 7% CAP on Actual Income w/ 68% of the income from long term, National Credit Tenants (179,530 Existing sq. ft.)

? $15,000,000+ of Potential Development Upside.

? Regional Hospital being built next door, in addition to major Medical Office, Retail, Hotel, & Density Multi-Residential development underway immediately adjacent to the subject property.

? 75%+ of all available land in the area is currently in the process of being developed.

? Very Strong Area Demographics (see below) 1 Mile 3 Mile

Total Population4,55048,709 Average HH Income$97,418$82,175 Median HH Income$83,657$71,858 Pop. with a Family3,85541,824 Family Households with Children 700 (56.8%) 7,534 (56.1%) Total Retail Expenditure $46.2 M $464 M

Harbour View Marketplace - Suffolk, VA

$41,500,000

Area Development (in progress)

No warranty or representation is made to the accuracy of the foregoing information. Terms of sale, lease and availability are subject to change or withdrawal without notice.

INVESTMENT HIGHLIGHTS

2

Harbour View Marketplace - Suffolk, VA

$41,500,000 Harbour View Blvd

Harbour View Marketplace Shopping Center represents a lucrative opportunity to purchase and further develop an institutional quality lifestyle and entertainment retail center, and to dominate the retail sector in a growing commercial hub.

Located in a progressive neighborhood within Suffolk, Virginia, the area surrounding Harbour View Marketplace Shopping Center boasts excellent demographics which will transfer into high volumes of patronage. More than 50% of households in the area are upper-middle class families with children under the age of eighteen. Harbor View Marketplace is within close proximity of hotels and other new development projects including a new hospital slated for the site next door to the south. Other recent projects within walking distance from the subject property include: a 229 unit luxury apartment building completed in 2014; a 175 Unit senior housing facility, completed in 2015 and a 264 luxury apartment building scheduled for completion in 2016. Additionally, in September 2015, Bon Secours Hampton Roads Health System broke ground on the Bon Secours Cancer Institute at Harbour View; a 58,000 square-foot, two-story Medical Plaza scheduled to open in Fall 2016.

The existing tenancy compliments the future expansion and repositioning of Harbour View Marketplace. The future of the marketplace could include entertainment oriented tenants such as: a major arcade and gaming tenant, a large brewery/tap room, additional restaurants, lounges/bars/nightlife establishments (zoning permitting) and possibly a bowling alley or indoor carting/racing (space permitting). These concepts could be complimented by smaller shop tenants and the addition of outdoor (enclosable) patio areas and recreation spaces. The existing development will enhance leasing efforts by providing a "real world" example of the quality of development to the prospective future tenants.

The lack of direct competition of a Lifestyle Center (within the immediate trade area) enhances the desirability of this project for tenants and consumers alike, solidifying the project's future success.

Hampton Roads Pkwy

The property allows for the addition of approximately 100,000 square feet of new retail space within the property's existing boundaries. With 23 income producing tenants currently in place, Harbour View Marketplace is positioned to attract favorable financing for new development construction. Additionally, 68% of the existing income is derived from "credit" tenants, which should reduce the capital outlay required for the expansion of the center.

SUBJECT PROPERTY

No warranty or representation is made to the accuracy of the foregoing information. Terms of sale, lease and availability are subject to change or withdrawal without notice.

VALUE PROPOSITIONS

3

Grocery Store Future Development Properties

16 Screen Theatre

Harbour View Marketplace - Suffolk, VA

$41,500,000

ACTUAL INCOME (ADJUSTED *NOI & CAP RATE-EST.)

Price: 41,500,000 /PPSF $231.16

*Expenses used herein are based on 2015 Actual Expenses with Property Taxes and Management Adjusted up for the Asking Price & 2016 Income.

May 2015 to May 2016 In place Revenue (Including estimated NNN Reimbursements)

(All Rental increases for the next 12 calendar months are included in the NOI used herein)

Total December 31, 2015 Full Year Expenses:

Deduct 2014 Property Management:

Mgmt. Fee

$

Add 2016 Property Mgmnt (3% of All Revenue):

3.00%

$

Additional Cost for 2016 New Property Management:

$ (1,106,098)

112,873

(125,911) (per the existing contract)

$

(13,038)

4,197,043

Adjusted List Price(List Price minus Ground Lease Value):

Deduct old Property Taxes:

Tax Rate Used

Add 2016 Property Taxes (NEW):

1.31%

Additional Cost of New Property Taxes

$41,500,000 (for prop. Tax calculation) $ 370,471 $ (543,650)

$ (173,179)

TOTAL ADJUSTED PROPERTY EXPENSES

(1,292,315)

Total Existing Sq.Ft. 179,530 Existing Physical Vacancy:

PSF $ 6.99%

(7.20) per sq. ft. (on total sq. ft. Including Harris Teeter Ground Lease)

Net Operating Income & NNN's (Est.); Sept 2016 Rents:

$ 2,904,727

Actual Capitalization Rate (Est.); Sept 2016 Rents:

7.00%

Tenants Property Tax Reimbursements have been increased by the multiplier

1.467457678 (Derived from the above Figures)

This document is strictly a working document not to be construed or relied upon as factual; it is designed to illustrate estimates of investment income. It is

recommended that your financial analyst/consultant/accountant proof facts, numbers, calculations and assumptions. Lee & Associates is not liable for incorrect facts,

numbers, calculations and assumptions. This document is hypothetical and designed to be used for discussion purposes only.

No warranty or representation is made to the accuracy of the foregoing information. Terms of sale, lease and availability are subject to change or withdrawal without notice.

ACTUAL INCOME

4

Estimated Future Capitalization Rate (Pro Forma) Total Sq. Ft. (existing & new development)

(Pro Forma Estimate after property is fully developed)

Total Cost (after new development)

(Estimates in "Future Development of Land Table-SEE FULL OFFERING MEMORANDUM FOR ASSUMPTIONS)

Total Pro Forma (estimated) NOI

(w/all New sq. footage completed-Estimates in "Future Development of Land table-IN FULL OFFERING MEMORANDUM)

Overall Stabilized Capitalization Rate (estimated)

(w/all New sq. footage completed-SEE FULL OFFERING MEMORANDUM FOR ESTIMATES & ASSUMPTIONS)

294,454 $ 58,163,980 $ 5,214,383

9.0%

ROI (Cash on Cash return) & Loan Assumptions

Loan Balance

Down Payment

Amortized (years)

Interest Rate

Payment

$

Debt Coverage Ratio

Cash on Cash Return

(2,652,375) Annual

(After taking out Construction Loan)

43,622,985 75%

14,540,995 25% 30 Yrs.

4.50% APR $ (221,031) Mo.

1.966 DCR

17.62% $ 2,562,008

Value and Profit Estimated For Develop and Sell Option Estimated Future Value

Assumed future Capitalization Rate used for Future Value

Estimated Profit From Development and Sale of Asset:

7.00%

$ 74,491,183 $ 16,327,203

Calculation of Pro Forma CAP Rate After Property is Fully Developed New Square Footage Added (Sq. Ft.)

(Estimates in "Future Development of Land Table)

Cost Of New Development

(Estimates in "Future Development of Land Table)

Additional Net Operating Income

(Estimates in "Future Development of Land Table)

114,924 $ 16,663,980 $ 2,309,656

Harbour View Marketplace - Suffolk, VA

$41,500,000

No warranty or representation is made to the accuracy of the foregoing information. Terms of sale, lease and availability are subject to change or withdrawal without notice.

PROFORMA ESTIMATES

5

Harbour View Marketplace - Suffolk, VA

$41,500,000 187

28,798 SF Mid Box

3,003 SF 77x39' Shops

2,156 SF 77x28' Shops

154

4,659 SF 77x60.5'

Shops

2,7170 SF Mid Box

110 247

11,979 SF 99x121'

3,630 SF 66x60.5'

9,529 SF 82.5x115.5'

65,340 SF Small Box 15,000 SF MAX (If parked on parcel)

HARBOUR TOWN PARKWAY

39,204 SF Rest./Shops/Small Box

9,000 SF MAX (If parked on parcel)

Amount of Developable Land & Building Square Footage is Estimated

No warranty or representation is made to the accuracy of the foregoing information. Terms of sale, lease and availability are subject to change or withdrawal without notice.

SITE PLAN & FUTURE DEVELOPMENT EST.

6

Harbour View Marketplace - Suffolk, VA

$41,500,000

No warranty or representation is made to the accuracy of the foregoing information. Terms of sale, lease and availability are subject to change or withdrawal without notice.

IMAGES - THEATRE & SHOPS

7

Harbour View Marketplace - Suffolk, VA

$41,500,000

No warranty or representation is made to the accuracy of the foregoing information. Terms of sale, lease and availability are subject to change or withdrawal without notice.

IMAGES - HARRIS TEETER, SHOPS & PADS

8

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