OFFERING MEMORANDUM • COLLEGE TOWN STNL …

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OFFERING MEMORANDUM ? COLLEGE TOWN STNL STARBUCKS

PRIME NET LEASED RETAIL IN BUSY LAFAYETTE PAVILION POWER CENTER NEAR PURDUE UNIVERSITY

Actual Photo

160 South Creasy Lane, Lafayette, Indiana 47905

LAFAYETTE PAVILIONS POWER CENTER

Walgreens

FIVE GUYS

CATERPILLAR LARGE ENGINE MANUFACTURING FACILITY 1,300+ Employees

SUBJECT PROPERTY STARBUCKS

1,824 SQ. FT. +/- GLA 0.494 ACRE +/- LOT

5 MILES WEST OF SUBJECT

? 44,500+ Student Enrollment ? 16,900+ Faculty and Employees ? Big Ten Conference Founder

131,000 POPULATION

WITHIN 5 MILES (2018)

S CREASY LANE

26,000 VPD (2019)

SR 26/SOUTH STREET

34,000 VPD (2019)

NN

*Borders Are Approximate Starbucks | Lafayette, Indiana 2

?

Walgreens

SR 26/SOUTH STREET

34,000 VPD (2019)

SUBJECT PROPERTY STARBUCKS

1,824 SQ. FT. +/- GLA 0.494 ACRE +/- LOT

FIVE GUYS

5 MILES EAST ? I-65

55,000 VPD (2019)

S CREASY LANE - 26,000 VEHICLES PER DAY (2019)

187,000

DAYTIME

POWER CENTER TRAFFIC

POPULATION

FLOW

WITHIN 5 MILES (2018)

NN

*Borders Are Approximate

Starbucks | Lafayette, Indiana 3

5 MILES EAST ? I-65

55,000 VPD (2019)

INDIANAPOLIS

60 Miles South

FIVE GUYS

SUBJECT PROPERTY STARBUCKS

1,824 SQ. FT. +/- GLA 0.494 ACRE +/- LOT

S CREASY LANE - 26,000 VEHICLES PER DAY (2019)

45,000 HOUSEHOLDS

WITHIN 5 MILES (2018)

N

*Borders Are Approximate Starbucks | Lafayette, Indiana 4

5 MILES WEST OF SUBJECT ? 44,500+ Student Enrollment ? 16,900+ Faculty and Employees

SUBJECT PROPERTY STARBUCKS

1,824 SQ. FT. +/- GLA 0.494 ACRE +/- LOT

?

Walgreens

$67,000 AVG. HH INCOME

WITHIN 5 MILES (2018)

NN

*Borders Are Approximate

Starbucks | Lafayette, Indiana 5

ADDRESS: 160 S CREASY LN LAFAYETTE, IN 47905

PRICE $1,780,000

CAP RATE 5.40%

ANNUAL NOI $96,079

LEASE SUMMARY Tenant Lease Type

Starbucks NN

Roof & Structure Responsibility Property Taxes Lease Commencement Base Lease Expiration Base Term Remaining Options Increases

Landlord Responsible Tenant Pays Directly 1/13/2006 09/30/2026 6 Years +/-

Two, Five-Year Options with Increases Yes, 7.5% Every Five Years

VITAL DATA Price Cap Rate Gross Leasable Area Year Built

$1,780,000 5.40%

1,824 Sq. Ft. +/2006

Lot Size

0.494 Acres +/-

BASE RENT SCHEDULE

Year

Annual Rent

Monthly Rent

Rent/Sq. Ft.

Cap Rate

11-15 (10/1/16-9/30/21)

$89,376.00

$7,448.00

$49.00

-

16-20 (10/1/21-9/30/26)

$96,079.20

$8,006.60

$52.68

5.40%

*Priced Based 2021 rental increase, Seller to credit Buyer the difference at closing. Sale Based on NOI of $96,079

Option Periods

21-25 (10/1/26-9/30/31)

$103,285.14

$8,607.10

$56.63

5.80%

26-30 (10/1/31-9/30/36)

$111,031.53

$9,252.63

$60.87

31-35 (10/1/36-9/30/41)

$119,358.89

$9,946.57

$65.44

36-40 (10/1/41-9/30/46)

$128,310.81

$10,692.57

$70.35

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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. ? 2020 Marcus & Millichap ACTIVITY ID: ZAB0330389

6.24% 6.71% 7.21%

Starbucks | Lafayette, Indiana 6

INVESTMENT HIGHLIGHTS

Subject is Situated on 0.494 Acres of Land with 1,824 Square Feet of Building GLA, Site Amenities Include Pylon Signage, Drive Thru and 20 Parking Spaces

Subject is Located on the Southwest Corner of SR 26/South Street (34,000 VPD) & S Creasy Lane (26,000 VPD) Just Five Miles off of Highway Interstate 65 (55,000 VPD via Exit 172 (Source: INDOT 2019 Counts, LandVision)

Tenant Starbucks (NASDAQ: SBUX) Has an InvestmentGrade Credit Rating of BBB+ by S&P Global, with 7.5% Increases Every 5 Years in Base and Options

Subject is an Outparcel to Premier Lafayette Pavilions Power Center, With Over 380,000-Square Feet of Flagship Retailers, Specialty Grocers and Restaurants | Anchored by TJ Maxx, Marshalls, ULTA Beauty, Fresh Thyme

Starbucks has a 14-Year Operating History at this Location, Currently Operating on a 10-Year Lease Extension

Major Retail Corridor Features Nearby Tenants Walmart Supercenter, Sam's Club, Lowe's Home Improvement, Dollar General, Super Target, VASA Fitness, UHaul, Taco Bell, KFC, Chick-Fil-A, Chipotle, Burger King and More

Adjacent to Caterpillar Inc. Large Engine Manufacturing Facility, with 1,300 Employees and Growing with a Recent $73.6 Million Dollar Expansion

Subject is Located Just One Hour Northwest of Indianapolis (60 Miles) and Two Hours South of Chicago (105 Miles) on Interstate 65

West-Lafayette/Lafayette is an Affluent College Town, Home to Purdue University, with Over 44,500 Students Enrolled and 16,900 Faculty and Staff Working On-Campus (Source: Purdue.edu)

Huge Daytime Population of 187,247 People Within Five Miles of Subject, Due to Proximity of Major Area Employers Including Arconic, Caterpillar, Subaru, and Wabash National

The City of Lafayette Has a Population of Over 72,000 While the Lafayette-West Lafayette Metro has a Population of Approximately 223,000 Residents Across Three Indiana Counties, as of 2018 U.S. Census Estimates

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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. ? 2020 Marcus & Millichap ACTIVITY ID: ZAB0330389

Starbucks | Lafayette, Indiana 7

DEMOGRAPHICS

2018 5-MILE POPULATION

APPROX. 131,000

2018 5-MILE AVERAGE HOUSEHOLD INCOME

APPROX. $67,000

1 of 2

2018 5-MILE HOUSEHOLDS

APPROX. 45,000

1 MILE

3 MILES

2018 5-MILE DAYTIME POPULATION

APPROX. 187,000

5 MILES

Area Population

1 Mile

2010 Population Census

4,765

2018 Population Estimate

5,330

2023 Population Projection 5,652

2010-'18 Population Growth +11.85%

2018-'23 Population Growth +6.04%

2018 Daytime Population

14,121

3 Miles 55,781 60,416 63,042 +8.30% +4.34% 80,455

5 Miles 120,298 130,803 136,811 +8.73% +4.59% 187,247

Area Households 2010 Households 2018 Households Estimate 2023 Households Projection 2018 Average HH Size

1 Mile 2,200 2,488 2,658

2.2

3 Miles 24,213 26,622 27,922

2.3

5 Miles 45,349 50,311 53,141

2.3

Area Income Median HH Income Per Capita Income Average HH Income

1 Mile $49,111 $29,627 $63,172

3 Miles $48,752 $28,219 $63,579

5 Miles $49,434 $26,882 $66,671

Source: Marcus & Millichap Analytics, U.S. Census Bureau (2020)10

Starbucks | Lafayette, Indiana 8

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