STARBUCKS Rare Starbucks Outparcel to Walmart Supercenter Offering Memorandum STARBUCKS 1824 W Joe Harvey Blvd • Hobbs, NM 88240 Rare Starbucks Outparcel to Walmart Supercenter

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4 4 # STARBUCKS STARBUCKS OFFERING SUMMARY OFFERING SUMMARY EXECUTIVE SUMMARY OFFERING SUMMARY Price $1,826,145 Net Operating Income $96,800 Capitalization Rate – Current 5.30% Price / SF $1,042.32 Rent / SF $55.25 Lease Type NNN Gross Leasable Area 1,752 SF Year Built / Renovated 2014 Lot Size 0.55 acre(s) MAJOR EMPLOYERS EMPLOYER # OF EMPLOYEES * Hobbs Municipal Schools 840 Lea Regional Hospital LLC 421 General Services Department 400 Lea County Correctional Fcilty 342 New Mexico Junior College 310 Walmart 300 Hobbs Daily News Sun 259 Windstream Iowa-Comm LLC 224 Department of Water 204 D & D Pipeline Cnstr Inc 200 Zia Park Casino Watson Construction Co Inc 187 DEMOGRAPHICS 1-Miles 3-Miles 5-Miles 2017 Estimate Pop 3,326 27,571 45,553 2017 Census Pop 3,110 24,784 41,036 2017 Estimate HH 1,362 9,914 15,486 2017 Census HH 1,269 8,911 13,973 Median HH Income $86,344 $65,569 $56,729 Per Capita Income $42,943 $29,980 $24,964 Average HH Income $104,820 $82,454 $72,560 FINANCING Loan Amount $0 Loan Type Financed - New Loan Loan to Value 0.00% Down Payment 100% / $1,826,145 Net Cash Flow After Debt Service 5.30% / $96,800 Total Return 0.00% / $0 * # of Employees based on 5 mile radius 4 4 #

STARBUCKS INVESTMENT OVERVIEW OFFERING SUMMARY INVESTMENT HIGHLIGHTS Marcus and Millichap is pleased to present for sale this Starbucks in Hobbs, New Mexico. Strategically located as a pad to a critically important Walmart Supercenter, this site boasts exceptional access to a highly important trade area. Built just in 2014, this site fulfilled a long overdue need for the Starbucks corporation, as they had no single-tenant drive-thru presence in town. Perhaps one of the most compelling aspects of this investment, is the strength of the retail corridor on which the site sits in the heart of. Within a 3 mile radius surrounding retailers include. Walmart, Lowe’s, Home Depot, Applebee’s, IHOP, Chili’s, Wingstop, McDonald’s, and Taco Bell to name a very small few. With over potentially over 26 years of term left on a NNN lease, investors have the opportunity to purchase an asset with one of the strongest corporate guaranteed leases in the entire Net Lease industry. Investors should also take note of the continuous Net Lease development in the area. Any buyer will benefit greatly from buying into a market that is seeing future growth and development, all adding to the strength of the investment. In Heart of Hobbs' Retail Corridor Continuous Net Lease development INVESTMENT HIGHLIGHTS

Starbucks Corporation PROPERTY NAME STARBUCKS PROPERTY NAME STARBUCKS PRICING AND VALUATION MATRIX PRICING AND VALUATION MATRIX TENANT SUMMARY TENANT SUMMARY Starbucks Corporation CREDIT RATING: A2 www.fdreports.com | www.creditntell.com | December 31, 2017 General Information Address 2401 Utah Avenue, South , Seattle, Washington, 98134, United States Phone 206-447-1575 Website www.starbucks.com Key Personnel Chief Operating Officer Rosalind Brewer President & CEO Kevin R. Johnson Chief Financial Officer Scott H. Maw Chairman Howard Schultz Store Base Store Count 28,039 TTM Sales $19,093,700,000 Financial Markets Stock Ticker SBUX Current Price $56.10 as of 2/21/18 52 Week High/Low $64.87 / $52.58 Wake up and smell the coffee -- Starbucks is everywhere. The world's #1 specialty coffee retailer, Starbucks has more than 25,000 coffee shops in 75 countries. The outlets offer coffee drinks and food items, as well as roasted beans, coffee accessories, and teas. Starbucks operates more than 12,700 of its own shops, which are located mostly in the US, while licensees and franchisees operate roughly 12,375 units worldwide (including many locations in shopping centers and airports). In addition, Starbucks markets its coffee through grocery stores, food service customers, and licenses its brand for other food and beverage products. Fiscal Year Ended October 01, 2017 6

STARBUCKS AERIAL PHOTO

8 # STARBUCKS OFFERING SUMMARY OFFERING SUMMARY PROPERTY SUMMARY NOTES Actual NOI is 88,000 but seller will credit the rental difference to the next rental increase of 96,800 which commences in year 5 8 #

MARCUS & MILLICHAP CAPITAL CORPORATION CAPABILITIES WHY MMCC? STARBUCKS ACQUISITION FINANCING MARCUS & MILLICHAP CAPITAL CORPORATION CAPABILITIES MMCC—our fully integrated, dedicated financing arm—is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and terms. We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide our clients with the greatest range of financing options. Our dedicated, knowledgeable experts understand the challenges of financing and work tirelessly to resolve all potential issues to the benefit of our clients. WHY MMCC? Optimum financing solutions to enhance value Our ability to enhance buyer pool by expanding finance options Our ability to enhance seller control Through buyer qualification support Our ability to manage buyers finance expectations Ability to monitor and manage buyer/lender progress, insuring timely, predictable closings By relying on a world class set of debt/equity sources and presenting a tightly underwritten credit file Closed 1,651 debt and equity financings in 2016 National platform operating within the firm’s brokerage offices $5.1 billion total national volume in 2016 Access to more capital sources than any other firm in the industry

10 PROPERTY NAME STARBUCKS STARBUCKS PROPERTY NAME PROPERTY NAME PRICING AND VALUATION MATRIX PRICING AND VALUATION MATRIX LOCATION OVERVIEW TENANT SUMMARY MARKETING TEAM DEMOGRAPHICS CREATED ON FEBRUARY 21, 2018 1 Miles 3 Miles 5 Miles POPULATION 2022 Projection 3,600 28,044 46,179 2017 Estimate 3,326 27,571 45,553 2010 Census 3,110 24,784 41,036 2000 Census 2,523 20,963 34,578 INCOME Average $104,820 $82,454 $72,560 Median $86,344 $65,569 $56,729 Per Capita $42,943 $29,980 $24,964 HOUSEHOLDS 1,513 10,371 16,134 1,362 9,914 15,486 1,269 8,911 13,973 980 7,780 12,170 HOUSING 2017 $173,272 $144,084 $118,331 EMPLOYMENT 2017 Daytime Population 2,574 24,195 45,896 2017 Unemployment 4.58% 7.11% 8.93% 2017 Median Time Traveled 20 18 19 RACE & ETHNICITY White 83.99% 75.47% 71.92% Native American 0.04% 0.06% 0.12% African American 3.15% 4.11% 5.51% Asian/Pacific Islander 1.29% 0.90% 0.69% Source: © 2015 Experian 10