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

2. 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.
STARBUCKS
Hobbs, NM
ACT ID Z

3. NET LEASED DISCLAIMER
Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:
The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.
As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.
Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.
Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.
Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.
By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

4. 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 #

5. 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

6. 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
| | December 31, 2017
General Information
Address
2401 Utah Avenue, South , Seattle, Washington, 98134, United States
Phone
Website
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

7. STARBUCKS
AERIAL PHOTO

8. 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 #

9. 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. 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