VALUE-ADD RETAIL CENTER Investment Opportunity

411-425 WEST A STREET

NEWTON NORTH CAROLINAACTUAL SITE

ACTUAL SITE 2 NATIONAL NET LEASE GROUP

EXCLUSIVELY MARKETED BY

SAM HANNASenior Vice PresidentSRS National Net Lease Group

3131 Camino Del Rio N, Suite 310San Diego, California 92108D 619.489.9003 M 619.884.4875sam.hanna@srsre.com CA License No. 01242719

Broker in Charge: Ray Uttenhove, SRS Real Estate Partners-Southeast, LLC NC License No. 267848

JACK QASHATAssociateSRS National Net Lease Group

3131 Camino Del Rio N, Suite 310San Diego, California 92108D 619.489.9002 M 619.354.5225jack.qashat@srsre.com CA License No. 01914468

ACTUAL SITE 3 NATIONAL NET LEASE GROUP

4INVESTMENT SUMMARY

Offering Summary | Investment Highlights

7PROPERTY OVERVIEW

Aerials | Site Plan | Location Map

12AREA OVERVIEW

Demographics

14FINANCIALS

Rent Roll | Pricing Summary

CONTENTS

ACTUAL SITE 4 NATIONAL NET LEASE GROUP

SRS National Net Lease Group is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership), Warlick Plaza, a former Honey’s IGA Grocery anchored shopping center located in Newton, North Carolina. The shopping center is currently 18% occupied by Family Dollar, a Salon, and Ace Bail Bonds, LLC, with a unique opportunity to stabilize the 60,043 SF center through lease-up and re-tenanting. This is a value-add opportunity and is positioned for a new investor to capitalize on the vacancies and convert the center into a high-income producing property.

The City of Newton was informed that North Carolina has a Building Reuse Grant that could potentially give a developer $2,500 - $10,000 per new job created (estimated $750k total). Buyer will be responsible for any capital expenditures, demising cost, tenant improvements, leasing commissions, and all other re-tenanting cost.

The subject property is located near the signalized, hard corner intersection of Southwest Blvd/U.S.Hwy 321 and W A St with a combined (25,000 VPD). Southwest Blvd/U.S.Hwy 321, is a major north/south thoroughfare traveling through the city of Newton. Newton is an up and coming town and is only 41 miles from Charlotte. The construction of a duel road is being built between Charlotte and Newton and in the future the off load of Charlotte will be Newton. In addition, Catawba court, a courthouse that employs over 400 people, was recently built in 2018 and has increased traffic to the site. Other nearby national/credit tenants include Walmart Neighborhood Market, CVS, Burkes Outlet, Food Lion Supermarket, Dollar General, and more, further increasing consumer draw to the trade area. The 5-mile trade area is supported by a population of over 38,800 residents with an average household income of $67,500.

INVESTMENT SUMMARY

RENTABLE AREA 60,043 SF

LAND AREA 6.10 Acres

PROPERTY ADDRESS 411-425 W. A Street, Newton, NC 28658

YEAR BUILT 1984

PARCEL NUMBER 3730168317770000

OWNERSHIP Fee Simple (Land & Building Ownership)

ACTUAL SITE 5 NATIONAL NET LEASE GROUP

Offering

Property Specifications

PRICING $1,500,000

PRICE/SF: $24.98

CURRENT OCCUPANCY 18%

CURRENT OCCUPANTS Family Dollar StoresSalonBail Bonds Office

Parcel Map

OFFERING SUMMARY

ACTUAL SITE 6 NATIONAL NET LEASE GROUP

Tremendous Value-Add Opportunity | 18% Occupied | Fee Simple Offering | Low Price/SF

• Fee simple offering to acquire both land (6.1 acres) and 60,043 SF of retail spaces

• The shopping center is currently 18% occupied by Family Dollar, a Salon, and Ace Bail Bonds, LLC.

• The subject property is a value-add opportunity and is positioned for a new investor to capitalize on the vacancies and convert the center into a high-income producing property

• Low price/SF offering with strong intrinsic value on over 6 acres of land

Building Reuse Grant ($750k) | Buyer Responsibilities• The City of Newton was informed that North Carolina has a Building

Reuse Grant that could potentially give a developer $2,500 - $10,000 per new job created (estimated $750k total)

• Buyer will be responsible for any capital expenditures, demising cost, tenant improvements, leasing commissions, and all other re-tenanting cost

Major Thoroughfare | National/Credit Tenants | Catawba Court (Over 400 Emplyees)

• The subject property is located near the signalized, hard corner intersection of Southwest Blvd/U.S.Hwy 321 and W A St with a combined (25,000 VPD)

• Catawba court, a courthouse that employs over 400 people, was recently built in 2018 and has increased traffic to the site

• Nearby national/credit tenants include Walmart Neighborhood Market, CVS, Burkes Outlet, Food Lion Supermarket, Dollar General, and more

Local Demographics In 5-mile Trade Area• More than 38,800 residents and 37,300 employees support the trade

area• $67,500 average household income

INVESTMENT HIGHLIGHTS

7 NATIONAL NET LEASE GROUP

PROPERTY OVERVIEW

Location

Parking

Access

Parcel

Traffic Counts

Year Built

Improvements

Zoning

Located inCatawba County

There are approximately 159 parking spaces

on the owned parcel.

The parking ratio is approximately 2.65 stalls per

1,000 SF of leasable area.

W. A Street 3 Access Points

Parcel Number: 3730168317770000

Acres: 6.10 Square Feet: 265,716 SF

W. A Street 4,000 Cars Per Day

Southwest Boulevard / U.S. Highway 321 Business

21,000 Cars Per Day

1984

There is approximately 60,043 SF of existing

building area

PD-SC-C: Commercial

U.S.

HIG

HWAY

321

BUS

INES

SU.

S. H

IGHW

AY 3

21 B

USIN

ESS WEST A ST.

WEST A ST.

N. S

PRIN

G AV

E.

N. S

PRIN

G AV

E.

CARS PER DAY4,000

CARS PER DAY21,000

8 NATIONAL NET LEASE GROUP

CARS PER DAY11,000

SOUTH SOUTH NEWTON NEWTON

ELEMENTARY ELEMENTARY SCHOOLSCHOOL

NEWTON-CONOVER NEWTON-CONOVER HIGH SCHOOLHIGH SCHOOL

DISCOVERY DISCOVERY HIGH SCHOOLHIGH SCHOOL

U.S.

HIG

HWAY

321

BUS

INES

SU.

S. H

IGHW

AY 3

21 B

USIN

ESS

STATE HIGHWAY 10

STATE HIGHWAY 10

STATE HIGHWAY 16

STATE HIGHWAY 16

CARS PER DAY21,000

WEST A ST.WEST A ST.

CARS PER DAY4,000

CARS PER DAY12,000

N. S

PRIN

G AV

E.

N. S

PRIN

G AV

E.

9 NATIONAL NET LEASE GROUP

FARMERS TABLE CAFÉSO CHIC SALON

WEST A ST.WEST A ST.

WEST B ST.WEST B ST.

N. S

PRIN

G AV

E.N.

SPR

ING

AVE.

CARS PER DAY4,000

10 NATIONAL NET LEASE GROUP

11 NATIONAL NET LEASE GROUP

CHARLOTTE56 min | 41.4 miles

WINSTON-SALEM83 min | 80.5 miles

NEWTON

LOCATION MAP

2019 ESTIMATED POPULATION

1 Mile 5,093

3 Mile 19,186

5 Mile 38,816

2019 AVERAGE HOUSEHOLD INCOME

1 Mile $56,523

3 Mile $60,952

5 Mile $67,460

2019 ESTIMATED TOTAL EMPLOYEES

1 Mile 5,589

3 Mile 15,930

5 Mile 37,327

12 NATIONAL NET LEASE GROUP

AREA OVERVIEW Newton, North Carolina

Newton is located in Catawba County, positioned in the triangle formed by Asheville to the northwest, Winston-Salem to the northeast, and Charlotte to the southeast, all within an hour-and-a-half drive. The gently rolling terrain blends into the foothills of the Blue Ridge Mountains offering residents and visitors an abundance of scenic attractions, a wealth of recreational options, and a temperate climate with four seasons that are as distinct as they are mild. Newton is strategically located in the Hickory Metropolitan Area. The estimated population for 2018 was 12,968.

Newton has created an enviable living environment offering friendly neighborhoods and hospitable businesses, shops, and restaurants. The Downtown Newton Development Association has created an effective public-private collaboration to promote business development and preserve the friendly atmosphere of the downtown business district.

The City has a diverse industrial base, with companies producing fiber optic cable, automotive parts, baked goods, medical supplies, telecommunications technology, as well as traditional industries such as furniture and textiles. Over half of the nation’s furniture is produced within a 200-mile radius of Newton.

Some of the major employers of the City are: Catawba County Schools (1,975 Employees), Catawba County Government (1,030 Employees), Lee Industries (692 Employees), Bassett Furniture (580 Employees), Target Distribution Center (565 Employees), Newton-Conover City Schools (400 Employees), United Church Homes & Services (392 Employees), Technibilt (374 Employees), McCreary Modern (366 Employees) and City of Newton (275 Employees).

INC Magazine has twice named the region as one of the top entrepreneurial areas in America in both traditional and high-tech industries. The region has been recognized as offering businesses all the necessary tools to excel in a world-class business environment.

Hickory Regional Airport is close to the city.

Opportunities for higher education are offered by various universities and colleges including Catawba Valley Community College, Winthrop University, and Gaston College.

Newton is home to the Catawba County Museum of History. The city also has a number of parks and playgrounds such as Southside Park, Little Brook Park, Saint Paul’s Memorial Park, East Park, and Jacob Fork Park. It is also worth visiting Beach Bingo and Amusement Park. Newton has several churches including Old Saint Paul’s Church, Zion Church, and North Newton Church.

13 NATIONAL NET LEASE GROUP

AREA DEMOGRAPHICS

1 MILE 3 MILES 5 MILES

2019 Estimated Population 5,093 19,186 38,816

2024 Projected Population 5,207 19,532 39,620

2010 Census Population 4,926 18,687 37,528

Projected Annual Growth 2019 to 2024 0.44% 0.36% 0.41%

Historical Annual Growth 2010 to 2019 0.36% 0.29% 0.37%

2019 Estimated Households 2,028 7,538 15,058

2024 Projected Households 2,073 7,670 15,370

2010 Census Households 1,955 7,343 14,563

Projected Annual Growth 2019 to 2024 0.44% 0.35% 0.41%

Historical Annual Growth 2010 to 2019 0.40% 0.28% 0.36%

2019 Estimated White 74.54% 76.73% 79.77%

2019 Estimated Black or African American 17.02% 12.75% 9.76%

2019 Estimated Asian or Pacific Islander 2.43% 5.06% 5.71%

2019 Estimated American Indian or Native Alaskan 0.33% 0.37% 0.33%

2019 Estimated Other Races 7.58% 6.93% 6.96%

2019 Estimated Hispanic 16.47% 14.32% 13.57%

2019 Estimated Average Household Income $56,523 $60,952 $67,460

2019 Estimated Median Household Income $44,980 $45,173 $51,339

2019 Estimated Per Capita Income $22,395 $23,882 $26,379

2019 Estimated Total Businesses 317 969 1,968

2019 Estimated Total Employees 5,589 15,930 37,327

The above information has been obtained from sources we believe to be reliable, however we cannot accept responsibility for its correctness.

PPrroo PPrroo RReennttaall IInnccrreeaasseess LLeeaassee LLeeaassee

SSuuiittee TTeennaanntt NNaammee SSiizzee RRaattaa RReenntt RReenntt RReenntt RReenntt RRaattaa IInnccrreeaassee RReenntt RReenntt RReenntt RReenntt SSttaarrtt EEnndd OOppttiioonnss

## SSFF ((SSFF)) MMoonntthhllyy $$//SSFF//MMoo AAnnnnuuaall $$//SSFF//YYrr (($$)) DDaattee IInncc.. MMoonntthhllyy $$//SSFF//MMoo AAnnnnuuaall $$//SSFF//YYrr DDaattee DDaattee RReemmaaiinniinngg

1 Family Dollar 8,450 14% $3,000 $0.36 $36,000 $4.26 13% - - - - - - Jan-83 Apr-21 1 (3-Year)

(Renewed 2019) Opt. 1: $39,600/Yr

2 Salon 1,000 2% $918 $0.92 $11,016 $11.02 4% Aug-19 2.0% $936 $0.94 $11,236 $11.24 Aug-17 Jul-22 2 (5-Year)

Aug-20 2.0% $955 $0.96 $11,461 $11.46 2% Annual Increases

Aug-21 2.0% $974 $0.97 $11,690 $11.69

3 Ace Bail Bonds, LLC 1,200 2% $1,000 $0.83 $12,000 $10.00 4% Jun-20 3.0% $1,030 $0.86 $12,360 $10.30 Jun-19 Jun-21 3 (2-Year)

3% Annual Increases

4 Vacant 42,393 71% $14,131 $0.33 $169,572 $4.00 61% - - - - - - - - -

5 Vacant 7,000 12% $4,083 $0.58 $49,000 $7.00 18% - - - - - - - - -

TToottaall OOccccuuppiieedd 1100,,665500 1188%% $$44,,991188 $$00..4466 $$5599,,001166 $$55..5544 2211%%

TToottaall VVaaccaanntt 4499,,339933 8822%% $$1188,,221144 $$00..3377 $$221188,,557722 $$44..4433 7799%%

TToottaall // WWttdd.. AAvvgg:: 6600,,004433 110000%% $$2233,,113322 $$00..3399 $$227777,,558888 $$44..6622 110000%%

ACTUAL SITE 14 NATIONAL NET LEASE GROUP

For financing options and loan quotes:Please contact our SRS Debt & Equity team at debtequity-npb@srsre.com.

RENT ROLL

15 NATIONAL NET LEASE GROUP

For financing options and loan quotes:Please contact our SRS Debt & Equity team at debtequity-npb@srsre.com.

PRICING SUMMARY

OPERATING CASH FLOW IN-PLACE STABILIZED

Potential Rental Revenue: $277,588 $277,588

Potential Reimbursement Revenue: $24,155 $32,698

Gross Potential Revenue: $301,743 $310,286

Rental Vacancy: ($218,572) 79% ($13,879) 5%

Reimbursement Vacancy: ($19,871) 82% ($1,635) 5%

Effective Gross Revenue: $63,300 $294,772

Less Expenses: ($24,155) ($32,698)

Net Operating Income: $39,145 $262,074

OPERATING EXPENSES IN-PLACE PSF/YR STABILIZED PSF/YR

Taxes: $20,870 $0.35 $20,870 $0.35

Insurance: $836 $0.01 $836 $0.01

CAM: $2,149 $0.04 $2,149 $0.04

Management: $300 $0.00 $8,843 $0.15

Total: $24,155 $0.40 $32,698 $0.54

PRICING SUMMARY

Price: $1,500,000

PSF: $24.98

Stabilized NOI: $39,145

Stabilized Cap Rate: 12.73%

Stabilizing Costs: $559,502

NOTES

1) Operating Expenses are per 2018 Warlick Fixed Expenses.

2) Stabilized Management Fee is estimated at 3% of EGR.

3) Assumes all future tenants are full pass through.

4) Stabilized cap rate includes stabilizing costs.

5) Stabilizing costs are estimated at $10/SF for TIs and 6% for LCs (5 years).

RETAIL PROFESSIONALS

OFFICES LARGEST REAL ESTATE SERVICES FIRMin North America

exclusively dedicated to retail

RETAIL LISTINGSin 2018

TRANSACTION VALUEin 2018

275+ 25+ #1 1500+ $2.6B

SRS NATIONAL NET LEASE GROUP IS THE EXCLUSIVE NET LEASE CAPITAL MARKETS TEAM OF SRS REAL ESTATE PARTNERS.

This Offering Memorandum has been prepared by SRS National Net Lease Group (SRS) and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made

available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not

purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive submarket conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified

purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment.

*Statistics are for 2018

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