THE SHOPS AT PIERPONT

OFFERING MEMORANDUM

3151 Dauphin Street | Mobile, AL 36606

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04 | PROPERTY OVERVIEW 09 | FINANCIAL OVERVIEW

15 | AREA OVERVIEW 18 | TENANT OVERVIEW

E X C L U S I V E L Y L I S T E D B Y

3151 Dauphin Street | Mobile, AL 36606

THE SHOPS AT PIERPONT

OFFERING MEMORANDUM

J O H N N Y B L U E C R A I G Regional Director, Investments

Direct +1 404 410 9201 Mobile +1 850 509 8733

johnnyblue.craig@matthews.comLicense No. SL3331383 (FL)

J O S H B I S H O P Vice President & DirectorDirect +1 214 692 2289 Mobile +1 315 730 6228

josh.bishop@matthews.comLicense No. 688810 (TX)

S C O T T H E N A R D SVP & Regional DirectorDirect +1 214 692 2046 Mobile +1 972 998 7373

scott.henard@matthews.comLicense No. 684841 (TX)

B R O K E R O F R E C O R D KYLE MATTHEWS

License No. 110253 (AL)

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INVESTMENT HIGHLIGHTS

Strong tenant mix consisting of Jersey Mikes, Walgreens, and Goldfingers.

Excellent visibility and frontage along Dauphin Street which has traffic counts in excess of 36,000 cars per day.

2017 Construction: Purchaser will be acquiring a state of the art strip center with no immediate cap-ex requirements.

Minimal Landlord Responsibilities (see broker for details).

Fully Occupied, Stabilized Investment. The property is 100% occupied and diversifies an investors income stream, while still operating as a NNN investment.

Rare Expense Reimbursement Structure: All tenants reimburse their pro-rata share of parking lot and roof repairs.

INVESTMENT SUMMARY

$2,428,005L I S T P R I C E

7.25%C A P R A T E

$176,030N O I

6,000 SFG L A

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S E C T I O N I

PROPERTY OVERVIEW

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PARCEL MAP

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PROPERTY NAMEThe Shops at Pierpont

ADDRESS3151 Dauphin Street

LOCATIONMobile, AL 36606

PARCEL R022908192001060

PARKING SPACES ±52 Spaces

TOTAL TENANTS

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PHYSICAL DESCRIPTION

NET RENTABLE AREA ± 6,000 SF

LAND AREA ± 1.18 Acres

YEAR BUILT/RENOVATED2017

OCCUPANCY100%

AVERAGE TERM REMAINING7.1 Years

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W P I E R P O I N T D R I V E

DA

UP

HIN

ST

RE

ET

SITE PLAN

SUITE TENANT SQUARE FEET

1 Gold Fingers 3,000

2 Jersey Mikes 1,500

3 Walgreens 1,500

Totals 6,000 SF

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SURROUNDING TENANT MAP

DAUPHIN SQUARE

SHOPPING CENTER

SUBJECT PROPERTY

Dauphin Street ±36,000 VPD

SPRING HILL GOLF COURSE

SPRING HILL MEDICAL CENTER

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SURROUNDING TENANT MAP

SAGE PARK

Dau

phin

Str

eet ±

36,0

00 V

PD

SAGE AVENUE PARK

SUBJECT PROPERTY

SOUTH OF DAUPHIN

APARTMENTS

MOBILE RIVER

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S E C T I O N I I

FINANCIAL OVERVIEW

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1111

RENT ROLLCONTRACT RENTAL

RATE RENT $ PSF RENT INCREASES

SUITE TENANT LEASE START

LEASE END SF % OF NRA YEAR MONTH $ PSF / YR $ PSF / MO DATE

$ PSF / YR

$ PSF / MO

ANNUAL RECOVERY

RECOVERY PER AREA

OPTIONS EXPENSE CATEGORY

RECOVERY METHOD

1 Gold Fingers Mar-17 Mar-27 3,000 50.0% $96,000 $8,000 $32.00 $2.67 Feb-22 $35.20 $2.93 $16,165 $5.39

(1) 5-Year Option

CAMTAXINS

MGMT

NNN + 15% AdminNNNNNNNNN

2Jersey Mikes

Mar-17 Feb-23 1,500 25.0% $42,000 $3,500 $28.00 $2.33 $8,082 $5.39 (2) 5-Year Options

CAMTAXINS

MGMT

NNN + 15% AdminNNNNNNNNN

3 Walgreens Feb-19 Feb-24 1,500 25.0% $37,500 $3,125 $25.00 $2.08 $7,471 $4.98 (4) 5-Year Options

CAMTAXINS

MGMT

NNN + 15% AdminNNNNNN

4% of tenant’s base rent

Occupied Totals In-Place 6,000 100.0% $175,500 $14,625 $29.25 $2.44 $31,718 $5.29

Vacant Totals 0 0.0% $0 $0 $0.00 $0.00 $0 $0.00

TOTALS 6,000 100.0% $175,500 $14,625 $29.25 $2.44 $31,718 $5.29

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INCOME & EXPENSESYEAR YEAR 1

TOTAL $/SF

INCOME

Rental Income $175,500 $29.25

Reimbursement Revenue $31,718 $5.29

Effective Gross Income $207,218 $34.54

EXPENSES

Real Estate Taxes $9,673 $1.61

Insurance $6,600 $1.10

CAM $7,611 $1.27

Management Fees $7,303 $1.22

EGI (%) 3.5%

Total Operating Expense $31,187 $5.20

Net Operating Income $176,030 $29.34

TENANT EXPIRATIONS

EXPI

RIN

G S

QU

AR

E FE

ET

CU

MU

LAT

IVE

% O

F N

RA

500

3,000

2,000

2018 202720262025202420232022202120202019

80%

60%

40%

20%

0%0 00

YEAR

0

3,000

0 0

2,500

1,500

0 0 0

3,500

100%

120%3,000

131313

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S E C T I O N I I I

AREA OVERVIEW

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MOBILE, ALLocated on the southeastern coast of Alabama at the head of the Mobile Bay, the city of Mobile is the oldest city in the state and the birthplace of the celebration of Mardi Gras in the United States. It is the third most populous city in Alabama and the county seat of Mobile County.

As the largest municipality on the Gulf Coast between New Orleans, Louisiana, and St. Petersburg, Mobile houses the twelfth busiest port in the country. The Port of Mobile has always played a key role in the economic health of the city and has enabled Mobile to become the social, economic and creative hub of the entire Gulf Coast.

Downtown and midtown Mobile are made up of Eight National Register Historic Districts. The restoration of hundreds of historic downtown buildings and homes were initiated in addition to the construction of numerous new facilities and projects.

Many large businesses are headquartered in downtown Mobile alongside quaint, locally-owned art galleries, shops, restaurants and bars. In recent years, city and county leaders have made efforts to attract new business ventures to the area. The economy continues to enjoy the healthy growth of its traditional businesses, such as shipping, port facilities, shipbuilding and repair, and the seafood industry.

POPULATION 1 MILE 3 MILE 5 MILE

2010 Census 7,660 74,841 170,013

2019 Estimate 7,345 71,781 162,697

2024 Projection 7,264 70,958 160,923

HOUSEHOLDS 1 MILE 3 MILE 5 MILE

2010 Census 3,167 31,022 68,477

2019 Estimate 3,044 30,117 66,392

2024 Projection 3,011 29,897 65,956

INCOME 1 MILE 3 MILE 5 MILE

2019 Est. Average Household Income $56,472 $63,233 $59,674

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Mobile is currently experiencing growth due to a low cost of doing business, diverse commerce base, transpiration options, and quality lifestyle. Businesses and corporations are expanding to Mobile and the surrounding area bringing an increased workforce and new economic opportunities. Brookley field is thriving in eco-nomic activity with a large amount of commercial real estate development expected within the next few years. More specifically, the recent expansion of Mobile Aeroplex at Brookley is now the largest industrial and transportation complex in the region with over 75 companies and about 3,600 employees housed at the complex. Companies include FedEx, Airbus U.S. Manufacturing Facility, Signature Air Support, among others with continued growth.

Late last year, Airbus announced its largest single deal to build aircraft for Indigo Partners, whose airline portfolio includes Frontier, JetSMART, Volaris, and Wizz Air. The contract includes 430 aircraft and is valued at $49.5 billion. Airbus was also selected by Delta Air Lines to manufacture as many as 200 jetliners, with delivery of the first 100 beginning in 2020.

Airbus and Bombardier also announced an agreement to form a partnership to build Bombardier’s C Series passenger jets. This deal could result in the addition of a second aircraft assembly line at Mobile Aeroplex, creating a proposed 400 to 500 more direct jobs in the area, and would represent an investment of hundreds of millions of dollars. Reports also estimate that establishing “the necessary C Series facilities” would create 1,900 direct jobs, 1,000 indirect jobs, and 3,000 induced jobs during construction.

• Access to a market of 1.2 million people within 60 miles

• Extensive transportation options and high-quality infrastructure

• Strong foreign investment presence: There are more than 40 companies representing more than 20 countries

• Low cost and living and doing business

• AIDT: Mobile is a national leader in training and workforce development programs

• Alabama is a right-to-work state

Mobile Aeroplex at Brookley

Top EmployersMobi le ’s Bus iness Advantage

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S E C T I O N I V

TENANT OVERVIEWS

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The nation’s #1 drugstore chain, Walgreens, operates close to 9,600 stores in all 50 US states, the District of Columbia, the Virgin Islands and Puerto Rico. Prescription drugs are the focus of the company as they account for close to two-thirds of sales; the rest comes from general merchandise, over-the-counter medications, cosmetics and groceries. Most locations offer drive-through pharmacies and one-hour photo processing, which separates them from competition. Recently, Walgreen Co. fully acquired Alliance Boots, Europe’s leading drug wholesaler, to create Walgreens Boots Alliance, of which it is a subsidiary.

In January of 2009 Goldfingers opened its first store on Montgomery Highway in Dothan. It was an instant success and due to the amount of traffic the restaurant received, Bill Dorminy, Goldfingers founder, continued expanding. It has been voted “THE BEST CHICKEN TENDERS” in Dothan since its second year in operation. There are now six locations across the state of Alabama with potential to continue growing as Goldfingers started offering franchise opportunities.

Originally Mike’s Subs, this small sub shop was started in 1956 in Point Pleasant, NJ. In 1974, at the age of 17, Peter Cancro (current CEO) became the owner and proprietor of Mike’s Subs. Cancro spent the next decade building on the strong following that Mike’s Subs already enjoyed. In 1987, Peter began franchising and changed the name from Mike’s Subs to Jersey Mike’s Subs to capture the authenticity of where the authentic sub sandwich was born. There are currently more than 1,500 locations open and under development across the United States.

W W W . W A L G R E E N S . C O M

W W W . J E R S E Y M I K E S . C O M

W W W . T R Y G O L D F I N G E R S . C O M

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This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of The Shops at Pierpont located at 3151 Dauphin Street | Mobile, AL 36606 (“Property”) . I t has been prepared by Matthews Retai l Advisors. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T

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E X C L U S I V E L Y P R E S E N T E D B Y

3151 Dauphin Street | Mobile, AL

THE SHOPS AT PIERPONT

OFFERING MEMORANDUM

J O H N N Y B L U E C R A I G Regional Director, Invesments

Direct +1 404 410 9201 Mobile +1 850 509 8733

johnnyblue.craig@matthews.comLicense No. SL3331383 (FL)

J O S H B I S H O P Vice President & DirectorDirect +1 214 692 2289 Mobile +1 315 730 6228

josh.bishop@matthews.comLicense No. 688810 (TX)

S C O T T H E N A R D SVP & Regional DirectorDirect +1 214 692 2046 Mobile +1 972 998 7373

scott.henard@matthews.comLicense No. 684841 (TX)

B R O K E R O F R E C O R D KYLE MATTHEWS

License No. 110253 (AL)