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Market Positioning and Pricing Analysis

BELMONT SQUAREBELMONT SQUAREGROCERY ANCHORED SHOPPING CENTERGROCERY ANCHORED SHOPPING CENTER2020 Main St • Parsons, KS 673572020 Main St • Parsons, KS 67357

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Non-EndorsementsMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

Disclaimer THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express 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 service mark of Marcus & Millichap Real Estate Investment Services, Inc. Â© 2017 Marcus & Millichap. All rights reserved.

TABLE OF CONTENTS

SECTION

THE MARCUS & MILLICHAP ADVANTAGE 01 MARKETING PLAN 02

INVESTMENT OVERVIEW 03 Property Overview

Regional Map

Local Map

Aerial Photo

FINANCIAL ANALYSIS 04 Tenant Summary

Lease Expiration Chart

Operating Statement

Notes

Pricing Detail

Proposal Price

STRATEGIC OWNERSHIP ANALYSIS 05 Ownership Options

MARKET COMPARABLES 06 Sales Comparables

MARKET OVERVIEW 07 Demographic Analysis

GROCERY ANCHORED SHOPPING CENTER


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INVESTMENT

OVERVIEW

Regional Map


5

REGIONAL MAP


6

AERIAL PHOTO


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BELMONT SQUARE - GROCERY ANCHORED

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EXECUTIVE SUMMARY

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES

Parsons State Hosp Trining Ctr 491

Special Purpose School 467

Labette Health 459

Parsons Clinic 279

Waste Corporation America Inc 276

Flesh Company 237

Wskt 230

Labette Community College 210

Day & Zimmermann Kansas LLC 200

Dwaynes Photo Service 200

Kansas Div 200

Grandview Products Co Inc 185

DEMOGRAPHICS

3-Miles 5-Miles 10-Miles

2016 Estimate Pop 10,900 11,489 13,862

2016 Census Pop 11,346 11,946 14,294

2016 Estimate HH 4,488 4,705 5,604

2016 Census HH 4,712 4,934 5,822

Median HH Income $39,596 $39,922 $41,793

Per Capita Income $20,523 $20,531 $20,917

Average HH Income $48,715 $49,039 $50,813

VITAL DATA

YEAR 1 PROFORMA

Price $1,778,789 CAP Rate 9.25% 15.63%

Loan Amount $1,245,152 Net Operating Income $164,538 $278,015

Loan Type Proposed New Net Cash Flow After Debt Service

14.92% / $81,486 35.70% / $194,963

Interest Rate / Amortization 4.50% / 25 Years Total Return 19.97% / $109,070 40.99% / $223,815

Gross Leasable Area (GLA) 116,000 SF

Price/SF $15.33

Current Occupancy 72.41%

Year Built / Renovated 1975 / 1987

Lot Size 9 acre(s)

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MAJOR TENANTSTENANT GLA LEASE EXPIRATION LEASE TYPE

King Cash Savers 60,000 1/31/2027 NNN

Family Dollar 8,000 12/31/2019 N

Westco 16,000 5/31/2021 NNN

PROPERTY OVERVIEW


PROPERTY OVERVIEW

Marcus & Millichap is pleased to present for your review, Belmont Square grocery anchored shopping center located in Parsons, Kansas.

The investment consist of a 72 percent occupied multi-tenant retail center. The shopping center has a total square footage of 114,000, with 32,000 square-feet currently vacant. Belmont Square is currently being leased to King Cash Savers grocery store (with additional sub-leases to Auburn Pharmacy & Subway), Family Dollar & Westco Furniture. King Cash Savers and Westco Home Furnishings are on a triple-net lease and Family Dollar is on a single-net lease. King Cash Savers, under its parent company Pyramid Foods of Springfield, Missouri, has over 60 regional grocery stores

This property has significant value-add opportunity with a 14.59 percent pro forma cap rate at list price. With leverage, the proforma cash-on-cash return is 32.3 percent.

Belmont Square has excellent visibility from Main St. and connects with the thriving 92 percent occupied Main Street. Downtown, just 500 feet away. Historic Downtown Parsons was recently recognized as a National Great American Main Street Award Winner for the revitalization work that has occurred. Main Street. connects Belmont Square with local and national restaurants, Ace Hardware, Walgreen’s Pharmacy, law firms, business, The Parsons Municipal Auditorium and Labette Community College (2,000 students).

The City of Parsons is located 23 miles from the Southern border of Kansas and Oklahoma along Hwy 400. Parsons is the most populous city in Labette County and the second most populous city in southeast Kansas. Major employers are Labette Health, Grandview Products Co, Ruskin Manufacturing, Old Dominion Freight Line, STEINLE, Inc, Ducommun Aerostructures Inc., The Flesh Company,Power Flame Incorporated and dozens more.

PROPERTY OVERVIEW

§ Belmont Square Has Been A Grocery Shopping Center Since 1975

§ Largest Regional Operator Signed 10 Year Lease In January, 2017

§ Significant Value-Add Opportunity (14.59 Percent Proforma Cap Rate at List Price)

§ Family Dollar With Center Since 1987 - On 5th Lease Renewal

§ Westco Home Furnishings With Center Since 1996 & Signed a Five-Year Extension Last Summer

§ Located On Thriving Main St - Steps Away From 92 Percent Occupied Historic Downtown Parsons

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BELMONT SQUARE - GROCERY ANCHORED

PROPERTY SUMMARY

OFFERING SUMMARY

PROPOSED FINANCING

First Trust Deed

Loan Amount $1,355,028

Loan Type Proposed New

Interest Rate 4.50%

Amortization 25 Years

Loan Term 10 Years

Loan to Value 70%

Debt Coverage Ratio 1.82

THE OFFERING

Property Belmont Square - Grocery Anchored

Price $1,935,754

Property Address 2020 Main St,Parsons,KS

Assessors Parcel Number 036-24-0-10-01-001.00-0

Zoning Central Business District - 1

SITE DESCRIPTION

Number of Stories 1

Year Built/Renovated 1975

Gross Leasable Area 116,000

Ownership Fee Simple

Lot Size 8.49

Parking 478 Surface Spaces

Parking Ratio 4.35/1,000 SF

Topography Level - 1

Access Points Three: North, South West

UTILITIES

Gas All Public - 1

Electric All Public - 1

Water All Public - 1

Sewer All Public - 1

Trash Private - Waste Management Service -(620) 421-1221

CONSTRUCTION

Foundation Concrete

Framing Wood & Metal

Exterior Wood & Metal

Parking Surface Asphalt

Roof Single -Metal on Steel Frame

MECHANICAL

HVAC Warmed and Cooled Air

Fire Protection Wet Sprinklers

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Property Photos

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City Information


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MAJOR EMPLOYERS


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FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS


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TENANT SUMMARY

FINANCIAL ANALYSIS


OPERATING STATEMENT

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FINANCIAL ANALYSIS


PRICING DETAIL

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TENANT PROFILES


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King Cash Savers

Pyramid Foods is a company dedicated to providing consumers the very best food

and service at the very best prices. We are dedicated to our employees and

customers through the programs we support in their communities. We take pride in

the brands we represent.

Website: https://www.pyramidfoods.net/

General Information

Tenant Name King Cash Savers

Website http://www.kingcashsaver.com/

Parent Company Pyramid Foods, Inc

Headquartered Springfield, Mo

Rentable Square Feet 60,000 SF

Percentage of RBA 51.70%

Lease Commencement 1/5/2017

Lease Expiration 1/31/2027

TENANT SUMMARY

#

Fiscal Year Ended N.A.

Family Dollar (Dollar Tree, Inc.)

CREDIT RATING: 3/2017: Ba1 (Moody’s)

PRICING AND VALUATION MATRIX

PROPERTY NAMEGROCERY ANCHORED SHOPPING CENTER NEW 10-YEAR LEASE

PRICING AND VALUATION MATRIX

PROPERTY NAME


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TENANT SUMMARY

General Information

Address 10401 Monroe Road , Matthews, North Carolina, 28105, United States

Phone 704-847-6961

Website www.familydollar.com

Store BaseStore Count Over 8,000

TTM Sales N.A.

Key PersonnelCFO & EVP Mary A. Winston

Chairman & CEO Howard R. Levine

Financial MarketsCurrent Price $79.42. as of 7/6/17

52 Week High/Low $80.00/$75.00

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TENANT PROFILE

GROCERY ANCHORED SHOPPING CENTER NEW

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General Information

Tenant Name Westco Home Furnishings

Website https://westcohomefurnishings.com/index.html

Parent Company Westco Home Furnishings

Headquartered Oklahoma

Rentable Square Feet 16,000 SF

Percentage of RBA 13.80%

Lease Commencement 2/9/1996

Lease Expiration 5/31/2021

No. of Locations 12

Westco was founded by Mr. Dail C West on May 15, 1944. The first small

store was located on Main Street in Miami, Oklahoma and was known as

Miami Sales Company. B.F. Goodrich tires and appliances were the main

items sold. Furniture was added in 1955 with the opening of Commerce

Sales Company in Commerce, Oklahoma and since that time has been a

very important part of the business. Westco has continued to grow over

the years and now has stores in Oklahoma, Kansas and Missouri.

Westco Home Furnishings


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MARKET

COMPARABLES

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SALES COMPARABLES MAP

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BEMLONT SQUARE - (SUBJECT)

Coffeyville Plaza

Chickasha Square

Broadway Place

SALES COMPARABLES

1

2

3

11

22

33

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BelmontSquareGrocery

ShoppingCenter

CoffeyvillePlaza -Grocery

Anchored

ChickashaSquare

BroadwayPlace

0.0

0.9

1.8

2.7

3.6

4.5

5.4

6.3

7.2

8.1

9.0Avg. 8.77%

Average Cap Rate

PROPERTY NAME


SALES COMPARABLES

BelmontSquareGrocery

ShoppingCenter

CoffeyvillePlaza -Grocery

Anchored

ChickashaSquare

BroadwayPlace

$0.00

$5.70

$11.40

$17.10

$22.80

$28.50

$34.20

$39.90

$45.60

$51.30

$57.00

Avg. $29.06

Average Price Per Square Foot

SALES COMPARABLES

SALES COMPS AVG

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


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SALES COMPARABLES

1

Tenants Lease Type

Close Of Escrow: 9/15/2016 Country Mart NNM

Sales Price: $2,000,000 Rent A Center NNN

Price/SF: $19.65 Checks Into Cash NNN

CAP Rate: 8.67% Hibbett Sports NNN

Year Built: 1974 Factory Connection NNN

ON MARKET 60 DAYS

COFFEYVILLE PLAZA1000 Hall Street, Coffeyville, KS, 67337

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NOTES80,468 square foot retail center leased by Check into Cash, Factory Connection, Goodies, Carter Health Care LLC andAaron's sold for $940,000 or $11.68 PSF on 6/29/2015.

Tenants Lease Type

Close Of Escrow: 6/29/2015 Aaron's NN

Sales Price: $940,000 Carter Health Care NN

Price/SF: $11.68 Checks Into Cash NN

CAP Rate: 9.00% Factory Connection NN

Year Built: 1987 Goodies NN

CHICKASHA SQUARE2223 Ponderosa Dr, Chickasha, OK, 73018

NOTES

58% occupied Grocery Anchored Retail Center. 101,800 Sf. Value-Add Through Leasing. 4 Offers at list Price. Sold at List Cap of 8.67%

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Annual Per SF

Income $319,519 $2.75

Expenses $154,981 $1.34

NOI $164,538 $1.42

Occupancy 72.41%

Tenants Lease Type

Asking Price: $1,778,789 King Cash Savers NNN

Price/SF: $15.33 Family Dollar N

CAP Rate: 9.25% Westco NNN

Year Built: 1975

BELMONT SQUARE GROCERY SHOPPING CENTER

2020 Main St, Parsons, KS, 67357

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


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SALES COMPARABLES

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NOTESThe 87% occupied center is anchored by a 38,068 square foot Woods Supermarket (Woods). Woods is headquartered inBolivar, Missouri and has nine stores throughout Missouri and Kansas. Woods sales are $425 PSF and their current leaseterm extends through February of 2028. Woods offers its customers an out-lot convenience gas station and drive-thrupharmacy. Other national tenants include Dollar General and a Hardees ground lease.

Tenants Lease Type

Close Of Escrow: 6/1/2015 Woods Supermarket NNN

Sales Price: $3,500,000 Dollar General NNN

Price/SF: $55.84 Hardees NNN

CAP Rate: 8.64% Snip & Clip NNN

Year Built: 1969 Valiant Gun & Pawn NNN

BROADWAY PLACE701 East Broadway Boulevard, Sedalia, MO, 65301

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MARKET

OVERVIEW

PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

Source: © 2016 Experian

Created on July 2017

POPULATION 3 Miles 5 Miles 10 Miles§ 2021 Projection

Total Population 10,612 11,193 13,570

§ 2016 Estimate


§ 2010 Census


§ 2000 Census


§ Current Daytime Population

2016 Estimate 12,909 13,534 14,823

HOUSEHOLDS 3 Miles 5 Miles 10 Miles§ 2021 Projection

Total Households 4,387 4,603 5,506

§ 2016 Estimate


Average (Mean) Household Size 2.34 2.35 2.38

§ 2010 Census


§ 2000 Census


§ Occupied Units

2021 Projection 4,387 4,603 5,506

2016 Estimate 5,286 5,535 6,564

HOUSEHOLDS BY INCOME 3 Miles 5 Miles 10 Miles§ 2016 Estimate

$150,000 or More 1.50% 1.51% 1.53%

$100,000 - $149,000 6.40% 6.57% 7.56%

$75,000 - $99,999 8.55% 8.69% 10.10%

$50,000 - $74,999 20.22% 20.28% 20.07%

$35,000 - $49,999 17.86% 17.78% 17.82%

Under $35,000 45.18% 44.90% 42.65%

Average Household Income $48,715 $49,039 $50,813

Median Household Income $39,596 $39,922 $41,793

Per Capita Income $20,523 $20,531 $20,917

HOUSEHOLDS BY EXPENDITURE 3 Miles 5 Miles 10 MilesTotal Average Household Retail Expenditure $51,937 $52,175 $53,787

§ Consumer Expenditure Top 10 Categories

Housing $13,896 $13,951 $14,304

Transportation $9,236 $9,275 $9,543

Shelter $7,892 $7,917 $8,097

Food $5,851 $5,872 $6,020

Personal Insurance and Pensions $3,984 $4,021 $4,287

Health Care $3,923 $3,953 $4,092

Utilities $3,290 $3,304 $3,380

Entertainment $2,228 $2,242 $2,330

Cash Contributions $1,391 $1,403 $1,467

Household Furnishings and Equipment $1,327 $1,337 $1,396

POPULATION PROFILE 3 Miles 5 Miles 10 Miles§ Population By Age

2016 Estimate Total Population 10,900 11,489 13,862

Under 20 26.06% 25.93% 25.88%

20 to 34 Years 19.48% 19.22% 18.32%

35 to 39 Years 5.06% 5.05% 5.04%

40 to 49 Years 11.78% 11.82% 12.12%

50 to 64 Years 20.77% 20.94% 21.56%

Age 65+ 16.86% 17.04% 17.07%

Median Age 39.41 39.80 40.70

§ Population 25+ by Education Level

2016 Estimate Population Age 25+ 7,309 7,729 9,370

Elementary (0-8) 4.02% 3.94% 3.60%

Some High School (9-11) 7.39% 7.37% 7.09%

High School Graduate (12) 28.09% 28.14% 29.02%

Some College (13-15) 28.83% 28.74% 28.16%

Associate Degree Only 10.84% 10.95% 10.95%

Bachelors Degree Only 10.71% 10.74% 10.89%

Graduate Degree 7.52% 7.55% 8.12%

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IncomeIn 2016, the median household income for your selected geography is $41,793, compare this to the US average which is currently $54,505. The median household income for your area has changed by 33.06% since 2000. It is estimated that the median household income in your area will be $48,878 five years from now, which represents a change of 16.95% from the current year. The current year per capita income in your area is $20,917, compare this to the US average, which is $29,962. The current year average household income in your area is $50,813, compare this to the US average which is $78,425.

PopulationIn 2016, the population in your selected geography is 13,862. The population has changed by -9.29% since 2000. It is estimated that the population in your area will be 13,570.00 five years from now, which represents a change of -2.11% from the current year. The current population is 49.63% male and 50.37% female. The median age of the population in your area is 40.70, compare this to the US average which is 37.68. The population density in your area is 44.08 people per square mile.

HouseholdsThere are currently 5,604 households in your selected geography. The number of households has changed by -9.11% since 2000. It is estimated that the number of households in your area will be 5,506 five years from now, which represents a change of -1.75% from the current year. The average household size in your area is 2.38 persons.

EmploymentIn 2016, there are 7,908 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 50.72% of employees are employed in white-collar occupations in this geography, and 49.30% are employed in blue-collar occupations. In 2016, unemployment in this area is 6.76%. In 2000, the average time traveled to work was 15.00 minutes.

Race and EthnicityThe current year racial makeup of your selected area is as follows: 86.59% White, 6.28% Black, 0.04% Native American and 0.88% Asian/Pacific Islander. Compare these to US averages which are: 70.77% White, 12.80% Black, 0.19% Native American and 5.36% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 5.28% of the current year population in your selected area. Compare this to the US average of 17.65%.

PROPERTY NAME

MARKETING TEAM


HousingThe median housing value in your area was $62,592 in 2016, compare this to the US average of $187,181. In 2000, there were 4,388 owner occupied housing units in your area and there were 1,778 renter occupied housing units in your area. The median rent at the time was $282.

Source: © 2016 Experian

DEMOGRAPHICS

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MOVING CAPITAL, MAXIMIZING VALUE

www.MarcusMillichap.com

Daniel Greenamyre

Associate

Associate Member, National Retail GroupKansas City OfficeTel: (816) 410-1028

Fax: (816) 410-1020

[email protected]

License: KS SP00236311

Greg Bates

Supervising Broker

Kansas City OfficeTel: (816) 410-1025Fax: (816) 410-1020

[email protected]

License: KS BR00035677

P R E S E N T E D B Y

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