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503 S. Mountain St. · Smithville, TN 37166

Advance Financial 24/7

CAPITAL MARKETS · INVESTMENT PROPERTIES

OFFERING MEMORANDUM

REPRESENTATIVE PHOTO

CBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum.

This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.

This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the “Owner”), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CBRE, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner.

Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.

The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.

By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.

© 2018 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited.

AFFILIATED BUSINESS DISCLOSURE AND CONFIDENTIALITY AGREEMENT

CENTER HILL LAKE | SMITHVILLE, TN

Section 1

VALUATION OVERVIEW

Section 2

INCOME OVERVIEW

Section 3

TENANT OVERVIEW

Section 4

MARKET OVERVIEW

CLICK A SECTION BELOW TO GET STARTED

Table of Contents


Valuation OverviewSection 1

Advance Financial · Smithville, TN5

$1,095,000 OFFERING PRICE

7.5% CAP RATE

PROPERTY SUMMARY

TENANT Advance Financial 24/7 ("Advance Financial")

ADDRESS 503 S. Mountain Street | Smithville, TN 37166

BUILDING SIZE (SF) ±1,500 SF

LAND ACREAGE ±0.57 AC

YEAR BUILT 2017

LEASE TYPE NNN (Landlord responsible for parking lot replacement)

ANNUAL RENT $82,125 (Years 1–5)

OWNERSHIP INTEREST Fee Simple

ENCUMBRANCES None, Delivered Free & Clear

LONG-TERM, NNN INVESTMENT OPPORTUNITY

CORPORATE GUARANTEE

10% RENTAL INCREASES EVERY 5 YEARS OF PRIMARY TERM

HIGH-GROWTH TENANT WITH STRONG REGIONAL PRESENCE

EXCELLENT ACCESS & VISIBILITY ALONG US HWY 70

STRONG & GROWING TOURISTIC IMPACT (DEKALB COUNTY)

ATTRACTIVE 2017 CONSTRUCTION

±65 miles

NASHVILLE

±21 miles

SPARTA

±35 miles

LEBANON ±18 miles

EDGAR EVINS STATE PARK

CBRE is offering to qualified investors the opportunity to purchase the fee simple interest in Advance Financial located at 503 S. Mountain Road in Smithville, Tennessee 37166 (the “Property”).

The Property is operating under a NNN lease (Landlord responsibility limited to parking lot replacement) with approximately eleven years of base term remaining and three (3), 5-year options to renew. The lease features attractive rental increases of 10% every five years during the base term, FMW at Option 1, and a 1.01% increase in each remaining option. The Property has a current annual rent of $82,125.

Advance Financial 24/7 is the fastest-growing small-dollar loan financial services company in Tennessee and one of the leading companies nationwide within its industry. Founded in 1996, the Nashville-based company has grown to operate 86 locations and employs more than 800 local representatives throughout Tennessee.

N


Income OverviewSection 2


Lease Abstract

503 S. MOUNTAIN ST. | SMITHVILLE, TN 37166

TENANT Advance Financial

GUARANTOR Harpeth Financial Services, LLC

LEASE DATE May 29, 2017

LEASE TYPE NNN (Landlord responsible for parking lot replacement)

BUILDING TYPE/USE Retail; Financial Center (Payday Lender)

YEAR BUILT 2017

BUILDING SIZE (SF) ±1,500 SF

LAND ACREAGE ±0.57 AC

RENT COMMENCEMENT January 22, 2018

TERM EXPIRATION January 31, 2029

PRIMARY TERM Eleven (11) Years

OPTIONS Three (3), 5-year options

RENTAL INCREASES 10% every 5 years of base term; FMV for Option 1; and 1.01% increase at each remaining option.

CURRENT ANNUAL RENT $82,125

SUBLET/ASSIGNMENT Landlord consent

ROOF Tenant Responsibility

PARKING Tenant Maintains, Landlord Replaces

STRUCTURE Tenant Responsibility

TAXES & INSURANCE Tenant Responsibility

HVAC & UTILITIES Tenant Responsibility

ALTERNATIONS & IMPROVEMENTS

Tenant, at its sole cost and expense, shall have the right to remodel and make any additions, alterations, or extensions to the Premises.

PERMITTED USE Retail

SURRENDER Tenant agrees peaceably to surrender and deliver to Landlord the Premises in the state of repair required of Tenant pursuant to this Lease.

TERMINATION OPTION Subject to Law Change in Payday Loan Industry (180 day written notice)

SNDA

Tenant, upon request of Landlord, will subordinate this Lease to any first mortgage which shall now or hereafter affect the Premises, and to any renewal, modification extension thereof, subject to certain conditions contained in the Lease.

ESTOPPEL Tenant or Landlord shall, at any time, upon no less than 20 days written notice from Landlord request an Estoppel.

ENCUMBRANCES None, Delivered Free & Clear

OWNERSHIP INTEREST Fee Simple

Rent ScheduleLEASE TERM START – END ANNUAL RENT RENT $/SF

BASE TERM1/22/18 - 1/21/23 $82,125 $54.75 1/22/23 - 1/31/29 $90,338 $60.23

OPTION 1 2/1/29 - 1/31/34 FMV -

OPTION 2 2/1/34 - 1/31/39 FMV + 1.01% -

OPTION 3 2/1/39 - 12/31/44 FMV + 1.01% -



Tenant OverviewSection 3


Advance Financial 24/7 ("Advance Financial") is a Nashville-based, family owned company providing a range of financial services including prepaid cards, global electronic wire services, check cashing, free bill-payment services, and free money orders.

The company’s loan product is not just a small dollar loan, but a flexible line of credit, a FLEX Loan, that offers customers the freedom of access to funds on their schedule with no late fees or early payoff penalties. The company was founded in 1996 and is headquartered in Nashville, Tennessee.

GROWTH STRATEGY

Operating for more than 20 years, Advance Financial has significantly expanded its footprint throughout Tennessee with 86 locations throughout the state, employing more than 800 local representatives (as of March 6, 2018). The company also offers online access to its FLEX Loans in Tennessee, Missouri, Kansas, Idaho, Utah, Alabama, Virginia, Delaware, North Dakota, and California.

Advance Financial is the fastest-growing small-dollar loan financial services company in Tennessee, and one of the leading companies nationwide within its industry. In March 2018, the company continued its expansion into Eastern Tennessee with the opening of its first store in Crossville. The opening marks the 86th location for the company.

• The company recently earned an A+ rating from the Better Business Bureau

• For the sixth consecutive year, Advance Financial was named to the Inc. 5000 fastest-growing private companies in the US with a 2017 ranking of 2000

• In 2017, Advance Financial was named to the Fast 50 List of the Fastest-Growing Private Companies in Nashville

Tenant Overview

REPRESENTATIVE PHOTOS

COMPANY PROFILETENANT Advance Financial 24/7

YEAR ESTABLISHED 1996

RETAIL LOCATIONS 86 (as of 3/6/2018)

NO. OF EMPLOYEES 800+

2016 REVENUE $149.4 million

HEADQUARTERS Nashville, TN

WEBSITE af247.com

TENNESSEE'S UPPER CUMBERLAND REGION

Market OverviewSection 4


Smithville is a city in and the county seat of DeKalb County, Tennessee, approximately 65 miles east of Nashville. Strategically located just off of Route 70, Smithville's provides direct access to the cities of Lebanon (±35 miles northwest) and Sparta (±21 miles east) and neighbors the towns of Alexandria, Liberty, and Dowelltown.

The city is among one of the fastest-growing cities in Tennessee, with Omega Apparel projecting the creation of 1,000 new jobs within the next five years at its manufacturing facilities in Smithville and newly opened facility in Nashville.

Smithville is world renowned for its annual Fiddlers’ Jamboree and Craft Festival, a two-day festival of Appalachian crafts, music, and dance. The festival attracts contestants from all over the United States—and Smithville's population of 4,000 swells to nearly 80,000 people.

DeKalb County is located in the Upper Cumberland Region of middle Tennessee. Situated on the Highland Rim, the county is home to Edgar Evins State Park and Center Hill Lake, a 54 mile long reservoir with 415 miles of largely undeveloped shoreline and 18,200 acres of deep, pure water. The lake's wide variety of sporting opportunities, including boating, fishing, water-skiing, camping, picnicking, hiking, and swimming, helps to attract visitors to the region.

In 2016, DeKalb County experienced a 5.4% growth in tourism compared to the previous year—the second-highest percentage increase out of the 95 counties in Tennessee. During the same time period, visitors spent a total of $44.99 million in DeKalb County, generating a total of $2.69 million in state and $6.04 million in local tax revenues, increases of 7.2% and 6.0%, respectively. A total of 320 DeKalb County residents are employed in tourism-related fields; placing DeKalb County third in total travel-related expenditures in the Upper Cumberland region behind the much larger Putnam and Cumberland counties.

Market Overview

CENTER HILL LAKE | SMITHVILLE, TN

ANNUAL FIDDLERS' JAMBOREE AND CRAFT FESTIVAL

EDGAR EVINS STATE PARK

Primary Trade Area

DOWNTOWN SMITHVILLE

Walmart Supercenter

±540 students±0.8 mile

SMITHVILLE ELEMENTARY

114-bed assisted living facility±125 employees

±0.9 mile

NHC HEALTHCARE, SMITHVILLE

71-bed full-service hospital±125 employees

±0.9 mile

SAINT THOMASDEKALB HOSPITAL

E. BROAD ST. (±14,950 VPD)

S. M

OU

NTA

IN S

T.

S. C

ON

GR

ESS

BLV

D. (

±14

,520

VP

D)

±65 miles

TO NASHVILLE

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POPULATION

2022 POPULATION* 7,162 10,823 19,491

2017 POPULATION 7,018 10,583 19,051

2010 POPULATION 6,864 10,230 18,358

2017–2022 GROWTH* 2.05% 2.27% 2.31%

2010–2017 GROWTH 2.24% 3.45% 3.77%*Projected

HOUSEHOLDS

2022 HOUSEHOLDS* 2,840 4,259 7,684

2017 HOUSEHOLDS 2,783 4,164 7,509

2010 HOUSEHOLDS 2,724 4,026 7,231

2017–2022 GROWTH* 2.05% 2.28% 2.33%

2010–2017 GROWTH 2.17% 3.43% 3.84%*Projected

HOUSEHOLD INCOME

2017 AVERAGE INCOME $53,715 $55,352 $56,280

DAYTIME EMPLOYMENT

2017 EMPLOYEES 5,907 6,056 7,135

0–1Mile

0–3Miles

0–5Miles

Area Demographics

ANNUAL FIDDLERS' JAMBOREE AND CRAFT FESTIVAL


MIKE PHILBINVice President

+1 818 907 [email protected]

SAM ALISONSenior Vice President +1 818 907 4690

[email protected]

AMAR GOLIVice President


PATRICK LARIMOREAssociate


PAUL GAITHERSenior Vice President +1 615 248 1161

[email protected]

© 2018 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. Any projections, opinions, or estimates are subject to uncertainty. The information may not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited.

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