HIWASSEE WHITEWATER COMPANY Offering Memorandum HIWASSEE WHITEWATER COMPANY 179 Tellico Reliance Rd • Reliance, TN 37369

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. HIWASSEE WHITEWATER COMPANY Reliance, TN ACT ID ZAA0960001

INVESTMENT OVERVIEW 01 FINANCIAL ANALYSIS 02 HIWASSEE WHITEWATER COMPANY TABLE OF CONTENTS SECTION INVESTMENT OVERVIEW 01 Offering Summary Local Map Aerial Photo Floor Plans Site Plan Parcel Map FINANCIAL ANALYSIS 02 Rent Roll Summary Commercial Operating Statement Notes Pricing Detail Acquisition Financing

HIWASSEE WHITEWATER COMPANY INVESTMENT OVERVIEW

CURRENT MONTHLY INCOME HIWASSEE WHITEWATER COMPANY OFFERING SUMMARY EXECUTIVE SUMMARY VITAL DATA 2018 YEAR 1 Price $950,000 CAP Rate 10.39% 11.08% Loan Amount $665,000 Net Operating Income $98,714 $105,300 Loan Type Proposed New Net Cash Flow After Debt Service 15.77% / $44,941 18.08% / $51,527 Interest Rate / Amortization 5.25% / 20 Years Total Return 22.55% / $64,262 25.22% / $71,887 Total Rentable SF 5,624 Price/SF $0.00 Year Built / Renovated 2003 / 2016 MAJOR EMPLOYERS EMPLOYER # OF EMPLOYEES Springtown Fire Station 13 Webbs Brothers Float Service 10 East Tennesse Nursery 9 Stadium Bbq - Delano Cheryl A Farmer 7 Flip-Flop Burgers Hiwassee Custom Cookers Hiwassee/Ocoee River Park Lance Satterfield Low Tide Productions Hiwassee Whitewater Co LLC 6 SW Inc UNIT MIX UNIT COUNT UNIT TYPE AVG. SF CURRENT AVG. RENTS AVG. RENTS/SF MONTHLY INCOME POTENTIAL RENTS AVG. RENTS/SF SUITE COUNT TYPE TOTAL GLA CURRENT RENT RANGE CURRENT MONTHLY INCOME PRO FORMA 1 Retail 5,624 $24,560 - $24,560 $24,560 $26,000 DEMOGRAPHICS 1-Miles 3-Miles 5-Miles 2018 Estimate Pop 39 215 1,513 2010 Census Pop 37 200 1,416 2018 Estimate HH 23 106 647 2010 Census HH 21 100 612 Median HH Income $43,171 $43,359 $43,135 Per Capita Income $30,393 $26,383 $22,634 Average HH Income $52,938 $53,479 $52,968 #

HIWASSEE WHITEWATER COMPANY OFFERING SUMMARY INVESTMENT OVERVIEW This amazing investment opportunity includes a fully operating and exclusive restaurant, retail store, campground, bunkhouse/bathhouse and event center with its own wastewater treatment facility and artesian well. All sitting on 2.8 acres on the Hiwassee river and the section of the river that passes through Reliance and flows in front of Hiwassee Whitewater Company to Delano, TN is designated a scenic river and is a popular paddling destination featuring flat water and whitewater class I, II, and III rapids. The State Park and Cherokee National Forest offer hiking trails, camping and several public launch areas so the town of Reliance gets very busy during rafting season and Flip Flop Burger is the only place to go. Another feature of this location is it's proximity to the Tennessee Valley Scenic Railroad which travels right through Reliance and is within 50 yards to the front door of this business. The railroad was formerly part of the Louisville and Nashville (L&N) Railroads Atlanta Division stretching between Etowah, TN and Marietta, Georgia. All inventory, equipment and supplies are included. A full three years of profit and loss statements are available upon request. Hiwassee River Frontage INVESTMENT HIGHLIGHTS

7 # HIWASSEE WHITEWATER COMPANY PROPERTY OVERVIEW OFFERING SUMMARY Upstairs is set up as an office space or owner residence. All restaurant equipment, supplies, and products included. Full inventory of equipment and supplies is available upon request. 7 #

# HIWASSEE WHITEWATER COMPANY PROPERTY SUMMARY OFFERING SUMMARY THE OFFERING Property Hiwassee Whitewater Company Price $950,000 Property Address 179 Tellico Reliance Rd, Reliance, TN Assessor’s Parcel Number 070038D A 05000 Zoning Commercial SITE DESCRIPTION Number of Units 1 Year Built/Renovated 2016 Total Rentable Square Feet 5,624 Lot Size 2.81 acre(s) EXISTING FINANCING Loan Amount $302,000 Loan Type bank Due Date 12/1/2015 Prepayment Penalty $50,000 Lender Name PROPOSED FINANCING First Trust Deed Loan Amount $665,000 Loan Type Proposed New Interest Rate 5.25% Amortization 20 Years Loan Term 10 Years Loan to Value 70% Debt Coverage Ratio 1.84 #

HIWASSEE WHITEWATER COMPANY LOCAL MAP

HIWASSEE WHITEWATER COMPANY AERIAL PHOTO

12 HIWASSEE WHITEWATER COMPANY PROPERTY PHOTO Marcus & Millichap closes more transactions than any other brokerage firm. 12

HIWASSEE WHITEWATER COMPANY FLOOR PLANS

HIWASSEE WHITEWATER COMPANY FLOOR PLANS

HIWASSEE WHITEWATER COMPANY SITE PLAN

HIWASSEE WHITEWATER COMPANY PARCEL MAP

HIWASSEE WHITEWATER COMPANY FINANCIAL ANALYSIS

HIWASSEE WHITEWATER COMPANY OPERATING STATEMENT FINANCIAL ANALYSIS

HIWASSEE WHITEWATER COMPANY NOTES FINANCIAL ANALYSIS

HIWASSEE WHITEWATER COMPANY PRICING DETAIL FINANCIAL ANALYSIS