Presented By NORTHSTAR

NORTHSTAR RETAIL GROUP | OFFERING MEMORANDUM

REPRESENTATIVE PHOTO

Presented By

NORTHSTAR

OF

INVESTMENT SUMMARY

STARBUCKS | BEMIDJI, MN

PRICE $1,800,000 5.68% CAP Rate

ADDRESS 1811 Paul Bunyan Drive Bemidji, MN 56601

APN 80.03011.00

NET OPERATING INCOME $102,215 ($45.96/SF)

BUILDING/LOT SIZE 2,224 SF / 0.72 Acres

LEASE TYPE NNN

YEAR BUILT 2017

TYPE OF OWNERSHIP Fee Simple

Marcus and Millichap exclusively presents the opportunity to acquire a freestanding Starbuck's in Bemidji, Minnesota. Starbuck's signed a ten-year lease that commences upon completion of the building, estimated to be February 1, 2018. The lease structure includes a rental increase every five years, minimal landlord responsibilities, and no early termination option. Starbucks (NYSE: SBUX) has an investment grade credit rating of "A" by Standard and Poors. They currently have over 24,000 stores in 70 countries.

The building is currently under construction. It is situated in the heart of the primary retail and medical corridor through Bemidji, surrounded by a mix of retailers including Walmart, Target, Menards, Home Depot, and the Paul Bunyan Mall. The building benefits from its location immediately adjacent to a 100 unit Super 8 Motel and one mile from the Sanford Hospital campus. The property also has direct signalized access to Paul Bunyan Drive, which is the primary thoroughfare into town with exposure to an estimated 16,000 vehicles per day.

Bemidji is a city in Northern Minnesota and is considered to be the largest commercial center between Grand Forks, ND and Duluth, MN. It is also home to Bemidji State University which is a public university with an enrollment of over 6,000 students.

Highlights:

? New 10-Year Corporate Lease

? Investment Grade Tenant - "A" Rating by S&P

? No Early Termination Option

? 2017 Construction with a Drive-Thru

? Adjacent to the Only Walmart & Target Within a 75 Mile Radius

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. ? 2017 Marcus & Millichap. All rights reserved.

INVESTMENT SUMMARY

STARBUCKS | BEMIDJI, MN

LEASE SUMMARY

Tenant

Starbucks Corporation

Guarantor

Corporate Guaranty

Rent Commencement (Estimated) 2/15/2018

Lease Expiration (Estimated)

2/28/2028

Renewal Options

3 ( 5 Year ) with 180 Days Notice

Lease Type

NNN

OPERATING SUMMARY

CAM

Landlord Responsible - Tenant Reimburses

Property Insurance Landlord Responsible - Tenant Reimburses

Real Estate Tax

Landlord Responsible - Tenant Reimburses

Utilities

Tenant Responsible - Pays Direct

Management Fee

Tenant Responsible - Not to exceed (i) 5% , (ii) $1.50/sf, or (iii) 15% of operating costs, whichever is less.

HVAC

Tenant Responsible for repair & maintenance

Capital Expenses

Cost to be amortized over useful life and reimbursed by Tenant annually.

RENT SCHEDULE

Date Range Years 1 - 5 Years 6 - 10

Option 1 (5 Years) Option 2 (5 Years) Option 3 (5 Years)

Annual Rent $102,215.04 $112,436.54 $123,680.20 $136,048.22 $149,653.04

Per SF $45.96 $50.55 $55.61 $61.17 $67.29

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. ? 2017 Marcus & Millichap. All rights reserved.

AERIAL PHOTO

FACING EAST

STARBUCKS | BEMIDJI, MN

16,500 VEHICLES

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. ? 2017 Marcus & Millichap. All rights reserved.

AERIAL PHOTO

FACING WEST

STARBUCKS | BEMIDJI, MN

10,200 VEHICLES

16,500 VEHICLES

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. ? 2017 Marcus & Millichap. All rights reserved.

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