HICKORY RIDGE CROSSING Offering Memorandum HICKORY RIDGE CROSSING 3685-3723 Hickory Hill • Memphis, TN 38115

NON-ENDORSEMENT AND DISCLAIMER NOTICE Confidentiality and Disclaimer The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved. Non-Endorsement Notice Marcus & 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. HICKORY RIDGE CROSSING Memphis, TN ACT ID Z0630057

HICKORY RIDGE CROSSING INVESTMENT OVERVIEW

# HICKORY RIDGE CROSSING EXECUTIVE SUMMARY OFFERING SUMMARY VITAL DATA YEAR 1 YEAR 2 Price $4,288,000 CAP Rate 9.00% Down Payment 30% / $1,286,400 Net Operating Income $385,992 Loan Amount $3,001,600 Net Cash Flow After Debt Service 13.23% / $170,148 Loan Type Proposed New Total Return 17.87% / $229,831 18.12% / $233,041 Interest Rate / Amortization 5.25% / 25 Years Gross Leasable Area (GLA) 68,029 SF Price/SF $63.03 Current Occupancy 91.65% Year Built / Renovated 1985 Lot Size 6.58 acre(s) MAJOR EMPLOYERS EMPLOYER # OF EMPLOYEES ARS Investment Holdings LLC 7,700 Promus Operating Company Inc 7,140 Homewood Suites 5,843 Thomas & Betts International 5,000 Tin Inc 3,800 INTERNATIONAL PAPER 3,000 Fedex 2,657 Marie Callenders Pie Shops 2,255 Tbc Retail Enterprises Inc 1,723 St Francis Hospital Inc 1,700 Varco Pruden Holding Inc 1,658 ServiceMaster 1,571 DEMOGRAPHICS 1-Miles 3-Miles 5-Miles 2017 Estimate Pop 15,032 94,318 200,694 2017 Census Pop 14,855 93,194 196,152 2017 Estimate HH 5,634 34,585 76,016 2017 Census HH 5,584 34,300 74,601 Median HH Income $31,828 $39,484 $47,280 Per Capita Income $15,270 $19,502 $26,543 Average HH Income $40,739 $53,122 $69,949 MAJOR TENANTS TENANT GLA LEASE EXPIRATION LEASE TYPE Hibbet Sporting Goods 6,490 6/30/2021 NNN Store 9,350 1/31/2019 Royal Furniture 23,640 12/31/2019 #

HICKORY RIDGE CROSSING OFFERING SUMMARY INVESTMENT OVERVIEW Marcus & Millichap is pleased to present for sale Hickory Ridge Crossing. This 68,029 square foot shopping center is 92% leased by a strong mix of national, regional and local tenants. National credit occupies a quarter of the shopping center. Located on the corner of Winchester (30,000 vpd) and Hickory Hill Road (25,000 vpd)the center is accessible from either street. There is potential future earnings upside through rent increases built into the leases and leasing activity. This property has been beautifully maintained, and will require minimal capital improvement. Tenants have long history of success in current location INVESTMENT HIGHLIGHTS

HICKORY RIDGE CROSSING OFFERING SUMMARY PROPERTY SUMMARY THE OFFERING Property Hickory Ridge Crossing Price $4,288,000 Property Address 3685-3723 Hickory Hill, Memphis, TN SITE DESCRIPTION Year Built/Renovated 1985 Gross Leasable Area 68,029 SF Ownership Fee Simple Lot Size 6.58 acre(s) PROPOSED FINANCING First Trust Deed Loan Amount $3,001,600 Loan Type Proposed New Interest Rate 5.25% Amortization 25 Years Loan Term 5 Years Loan to Value 70% Debt Coverage Ratio 1.79

HICKORY RIDGE CROSSING REGIONAL MAP

HICKORY RIDGE CROSSING AERIAL PHOTO

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HICKORY RIDGE CROSSING FINANCIAL ANALYSIS

HICKORY RIDGE CROSSING TENANT SUMMARY FINANCIAL ANALYSIS

HICKORY RIDGE CROSSING TENANT SUMMARY FINANCIAL ANALYSIS 12

HICKORY RIDGE CROSSING OPERATING STATEMENT FINANCIAL ANALYSIS

HICKORY RIDGE CROSSING PRICING DETAIL FINANCIAL ANALYSIS

Hibbett Sports, Inc. 17 PROPERTY NAME HICKORY RIDGE CROSSING PRICING AND VALUATION MATRIX PRICING AND VALUATION MATRIX TENANT SUMMARY TENANT SUMMARY Hibbett Sports, Inc. CREDIT RATING: B2 www.fdreports.com | www.creditntell.com | February 03, 2018 General Information Address 451 Industrial Lane , Birmingham, Alabama, 35211, United States Phone 205-942-4292 Website www.hibbett.com Key Personnel Chief Financial Officer Scott Bowman Chief Executive Officer Jeffry Rosenthal Store Base Store Count 1,079 TTM Sales $968,219,000 Financial Markets Stock Ticker HIBB Current Price $24.80 as of 5/25/18 52 Week High/Low $29.50 / $9.40 Small-town sports fans are the bread and butter for Hibbett Sports. The company sells sports equipment, athletic apparel, and footwear in small to midsized markets in more than 30 states, mainly in the South and Midwest. Its flagship Hibbett Sports chain boasts more than 925 locations; stores are primarily found in malls and strip centers anchored by a Wal-Mart. Hibbett also operates a single Sports & Co. superstore, a larger format featuring in-store putting greens, basketball hoops, and appearances by athletes. On a smaller scale, it runs about 20 mall-based Sports Additions shoe shops, most of which are situated near Hibbett Sports stores. The company also operates an e-commerce site. Fiscal Year Ended February 03, 2018 17

Dollar Tree, Inc. 18 PROPERTY NAME HICKORY RIDGE CROSSING PRICING AND VALUATION MATRIX PRICING AND VALUATION MATRIX TENANT SUMMARY TENANT SUMMARY Dollar Tree, Inc. CREDIT RATING: B1 www.fdreports.com | www.creditntell.com | February 03, 2018 General Information Address 500 Volvo Pkwy , Chesapeake, Virginia, 23320, United States Phone 757-321-5000 Website www.dollartree.com Key Personnel Chief Financial Officer Kevin S. Wampler President & CEO Gary Philbin Executive Chariman Bob Sasser Store Base Store Count 14,835 TTM Sales $22,245,500,000 Financial Markets Stock Ticker DLTR Current Price $95.48 as of 5/25/18 52 Week High/Low $116.65 / $65.63 Dollars may not grow on trees, but Dollar Tree brings in the green. The company operates more than 14,300 Dollar Tree, Deal$, Dollar Bills, and Family Dollar discount stores in 48 US states and the District of Columbia, and in five provinces in Canada. Stores carry a mix of housewares, toys, seasonal items, food, health and beauty aids, gifts, and books. At Dollar Tree shops most goods are priced at $1 or less while Family Dollar merchandise is usually less than $10. The stores are located in high-traffic strip centers and malls often in small towns. It purchased fellow discounter Family Dollar in 2015, bolstering its competitive position against Dollar General. Fiscal Year Ended February 03, 2018 18

HICKORY RIDGE CROSSING MARKET COMPARABLES

HICKORY RIDGE CROSSING (SUBJECT) 1600 John B White Sr Blvd Westwood Square SALES COMPARABLES SALES COMPARABLES MAP 1 2

21 PROPERTY NAME HICKORY RIDGE CROSSING SALES COMPARABLES SALES COMPS AVG 21

HICKORY RIDGE CROSSING PROPERTY NAME HICKORY RIDGE CROSSING SALES COMPARABLES MARKETING TEAM SALES COMPARABLES Annual Per SF Income $385,992 $5.67 NOI Occupancy 91.65% Tenants Lease Type Asking Price: $4,288,000 Hibbet Sporting Goods NNN Price/SF: $63.03 Store CAP Rate: 9.00% Royal Furniture Year Built: 1985 HICKORY RIDGE CROSSING 3685-3723 Hickory Hill, Memphis, TN, 38115 1 Annual Per SF Expenses $176,037 $2.73 Tenants Lease Type Close Of Escrow: 6/5/2017 Aaron's NNN Days On Market: 199 Dollar General Sales Price: $5,530,000 Price/SF: $85.71 CAP Rate: 8.61% Year Built: 1987 1600 JOHN B WHITE SR BLVD 1600 John B White Sr Blvd, Spartanburg, SC, 29301 2 Annual Per SF Expenses $205,556 $2.67 Tenants Lease Type Close Of Escrow: 9/8/2017 Play it Again Sports NNN Days On Market: 135 Western Union Sales Price: $7,585,000 Price/SF: $98.45 CAP Rate: 8.12% Year Built: 1982 WESTWOOD SQUARE 4400 Hardy Street, Hattiesburg, MS, 39402 rentpropertyname1 rentpropertyaddress1 rentpropertyname1 rentpropertyaddress1 rentpropertyname1 rentpropertyaddress1

HICKORY RIDGE CROSSING MARKET OVERVIEW

MEMPHIS OVERVIEW HICKORY RIDGE CROSSING MARKET OVERVIEW Often considered the home of the blues as well as the birthplace of rock ‘n’ roll, Memphis has music in its soul. The metro spans 3,000 square miles over nine counties in the states of Tennessee, Mississippi and Arkansas. The Tennessee counties include Shelby, Fayette and Tipton. Crittenden County is in Arkansas, and Tate, DeSoto, Tunica, Benton and Marshall counties are in Mississippi. The Mississippi River runs through the metro, forming the border between Tennessee and Arkansas. Other rivers flowing through the region define areas available for development. The market contains nearly 1.4 million residents and more than 953,600 reside in Shelby County. Memphis is the area’s most populous city with nearly 661,000 citizens. METRO HIGHLIGHTS GROWING ECONOMY A large distribution presence, favorable business climate and diversification into other industries are helping to grow the metro’s economy. SKILLED WORKERS Memphis has a large, highly skilled logistics labor pool that helps draw companies. AFFORDABLE COST OF LIVING The median home price in Memphis is well below the national median. 1

2017 MEDIAN HOUSEHOLD INCOME: HICKORY RIDGE CROSSING DEMOGRAPHICS The metro is expected to add nearly 66,000 people over the next five years, resulting in the formation of approximately 30,700 households. A median home price of nearly $170,000 is well below the U.S. median and has afforded 61 percent of households to own their home. Roughly 26 percent of people age 25 and older hold bachelor’s degrees; among those residents, 9 percent also have earned a graduate or professional degree. SPORTS 2017 Population by Age 0-4 YEARS 7% 5-19 YEARS 21% 20-24 YEARS 25-44 YEARS 27% 45-64 YEARS 26% 65+ YEARS 13% EDUCATION 35.9 2017 MEDIAN AGE: U.S. Median: 37.8 $48,400 2017 MEDIAN HOUSEHOLD INCOME: $56,300 1.4M 2017 POPULATION: Growth 2017-2022*: 4.8% 509K 2017 HOUSEHOLDS: 6% QUALITY OF LIFE The “Blues City” region offers an attractive quality of life for residents and visitors. Parks abound in the area. Local sports are represented by the NBA’s Memphis Grizzlies, and the Memphis Redbirds and the Mississippi RiverKings are the metro’s minor league baseball and hockey teams. The Liberty Bowl Memorial Stadium hosts the Liberty Bowl and University of Memphis football. Additionally, numerous casinos in Tunica County, Mississippi, offer gaming. Music plays an important role in the history of Memphis. Today, one can relive history by touring Graceland, the former home of Elvis Presley, or by visiting Sun Records or the former Stax Records, which is now the Stax Museum. ARTS & ENTERTAINMENT * Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau 3

HICKORY RIDGE CROSSING PROPERTY NAME HICKORY RIDGE CROSSING Created on May 2018 DEMOGRAPHICS MARKETING TEAM POPULATION 1 Miles 3 Miles 5 Miles 2022 Projection Total Population 14,738 92,767 204,443 2017 Estimate 15,032 94,318 200,694 2010 Census 14,855 93,194 196,152 2000 Census 14,166 95,180 188,549 Current Daytime Population 13,859 89,992 226,373 HOUSEHOLDS Total Households 5,582 34,302 78,443 5,634 34,585 76,016 Average (Mean) Household Size 2.68 2.72 2.63 5,584 34,300 74,601 5,576 37,311 74,022 Occupied Units 6,976 39,769 85,138 HOUSEHOLDS BY INCOME $150,000 or More 1.39% 2.71% 7.14% $100,000 - $149,000 3.59% 7.50% 10.93% $75,000 - $99,999 6.49% 10.70% 11.42% $50,000 - $74,999 13.88% 17.46% 18.09% $35,000 - $49,999 19.54% 17.83% 15.82% Under $35,000 55.12% 43.81% 36.61% Average Household Income $40,739 $53,122 $69,949 Median Household Income $31,828 $39,484 $47,280 Per Capita Income $15,270 $19,502 $26,543 HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 Miles Total Average Household Retail Expenditure $42,013 $52,880 $60,113 Consumer Expenditure Top 10 Categories Housing $11,755 $14,167 $15,841 Transportation $7,818 $9,672 $10,762 Shelter $6,689 $8,056 $8,940 Food $4,162 $5,147 $5,913 Utilities $3,045 $3,546 $3,830 Personal Insurance and Pensions $2,971 $4,348 $5,335 Health Care $2,353 $3,133 $3,777 Entertainment $1,438 $1,841 $2,228 Cash Contributions $1,224 $1,657 $1,956 Apparel $1,171 $1,421 $1,596 POPULATION PROFILE Population By Age 2017 Estimate Total Population 15,032 94,318 200,694 Under 20 34.62% 31.41% 29.14% 20 to 34 Years 28.07% 24.56% 22.89% 35 to 39 Years 7.10% 7.17% 6.90% 40 to 49 Years 11.27% 12.86% 12.88% 50 to 64 Years 12.71% 15.70% 17.40% Age 65+ 6.23% 8.28% 10.79% Median Age 27.96 31.06 33.59 Population 25+ by Education Level 2017 Estimate Population Age 25+ 8,440 56,955 127,324 Elementary (0-8) 4.46% 4.22% 3.62% Some High School (9-11) 10.03% 9.14% 7.13% High School Graduate (12) 36.47% 32.58% 27.52% Some College (13-15) 30.22% 28.84% 26.67% Associate Degree Only 4.96% 5.42% 5.94% Bachelors Degree Only 9.93% 12.93% 18.22% Graduate Degree 3.31% 6.05% 10.12% Source: © 2017 Experian

HICKORY RIDGE CROSSING PROPERTY NAME DEMOGRAPHICS MARKETING TEAM Population Race and Ethnicity In 2017, the population in your selected geography is 15,032. The population has changed by 6.11% since 2000. It is estimated that the population in your area will be 14,738.00 five years from now, which represents a change of -1.96% from the current year. The current population is 46.67% male and 53.33% female. The median age of the population in your area is 27.96, compare this to the US average which is 37.83. The population density in your area is 4,783.10 people per square mile. People of Hispanic origin make up 15.03% of the current year population in your selected area. Compare this to the US average of 17.88%. Households Housing There are currently 5,634 households in your selected geography. The number of households has changed by 1.04% since 2000. It is estimated that the number of households in your area will be 5,582 five years from now, which represents a change of -0.92% from the current year. The average household size in your area is 2.68 persons. The median housing value in your area was $91,902 in 2017, compare this to the US average of $193,953. In 2000, there were 2,075 owner occupied housing units in your area and there were 3,502 renter occupied housing units in your area. The median rent at the time was $586. Income Employment The current year per capita income in your area is $15,270, compare this to the US average, which is $30,982. The current year average household income in your area is $40,739, compare this to the US average which is $81,217. In 2017, there are 3,349 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 59.94% of employees are employed in white-collar occupations in this geography, and 39.74% are employed in blue-collar occupations. In 2017, unemployment in this area is 6.99%. In 2000, the average time traveled to work was 22.00 minutes. Source: © 2017 Experian

HICKORY RIDGE CROSSING 8 DEMOGRAPHICS