SOMERSET SHOPPES 7730 Atlanta Hwy • Montgomery, AL 36117

Offering Memorandum

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N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe 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 andshould 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, unverifiedinformation 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 duediligence 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, thefuture 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 orasbestos, 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 anytenant'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 bereliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding thesematters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures toverify 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 NoticeMarcus & 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 orname 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.

SOMERSET SHOPPES Montgomery, ALACT ID ZAA0700054

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INVESTMENT

OVERVIEW

SOMERSET SHOPPES

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EXECUTIVE SUMMARY

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES

Kohlberg & Co LLC 3,467

Healthcare Auth For Bptst Hlth 1,700

ABC Board 700

Rheem 600

Rheem & Ruud 600

Walmart 561

Das North America Inc 500

HCA Inc 500

Archdiocese of Mobile 471

Winn-Dixie 463

Rheem Water Heating 461

VA Medical Center 450

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2018 Estimate Pop 5,909 34,678 82,259

2010 Census Pop 6,030 34,421 80,678

2018 Estimate HH 2,728 14,650 33,926

2010 Census HH 2,812 14,605 33,539

Median HH Income $72,649 $63,842 $61,819

Per Capita Income $41,863 $39,572 $35,650

Average HH Income $90,627 $92,396 $85,585

VITAL DATA

YEAR 1 YEAR 2

Price $3,700,000 CAP Rate 8.54% 8.54%

Down Payment 30% / $1,110,000 Net Operating Income $315,850 $315,850

Loan Amount $2,590,000 Net Cash Flow After Debt Service 11.68% / $129,603 11.68% / $129,603

Loan Type Proposed New Total Return 16.32% / $181,102 16.57% / $183,872

Interest Rate / Amortization 5.25% / 25 Years

Gross Leasable Area (GLA) 27,250 SF

Price/SF $135.78

Current Occupancy 100%

Year Built / Renovated 2003

Lot Size 7.59 acre(s)

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MAJOR TENANTS

TENANT GLA LEASE EXPIRATION LEASE TYPE

State Farm Insurance 1,250 2/28/2024 NNN

d'Markos Salon 4,500 2/29/2020 NNN

Martha's Place 5,750 11/30/2024 NNN

GA Foods 4,000 9/30/2023 NNN

SOMERSET SHOPPES

OFFERING SUMMARY

Marcus & Millichap has been selected to exclusively market for sale the Somerset

Shoppes. This 27,250-square-foot building sits on 7.59 acres of land off Atlanta Highway

in Montgomery, Alabama. The building is 100% occupied with a total of 8 tenants that

serve the large residential presence surrounding the property. The restaurant and service

orientated tenants that occupy the building are all E-Commerce resistant. The property is

located near a large medical district with more than 35 medical centers that provide

services to the residents that frequent the location. The large residential presence along

with strong overall demographics and close proximity to I-85 provides the area with

traffic counts on Atlanta Highway of over 24,460 vehicles per day. The subject property

also features a 1 acre, undeveloped parcel of land that brings major upside to the overall

value of the property.

INVESTMENT OVERVIEW

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Investment Highlights• Value-Add Opportunity That Features a 1 Acre

Undeveloped Parcel of Land Valued at $275,000

• E-Commerce Resistant Retail Center with 100%

Occupancy

• Located On A Major Highway Near I-85 With a

Daily Traffic Count of 24,460 VPD

• Strong Residential Developments in the

Surrounding Area

• NNN Leases on all Tenants Gives Investor Minimal

Property Responsibility

• Medical District in Close Proximity

• Strong Demographics in Surrounding Area

INVESTMENT OVERVIEW

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Somerset Shoppes Land Value

OFFERING SUMMARY

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SOMERSET SHOPPES LAND

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SOMERSET SHOPPES LAND

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Land Value

THE OFFERING

Price $275,000

Property Address 7730 Atlanta Hwy, Montgomery, AL

Lot Size (Acres) 1 +/- Acre

Somerset Shoppes offers investors a steady income with an enormous upside through additional development. Theproperty features a graded one acre lot primed for development. The ideal user ranges from retail to medical office. Oneof the images above illustrates the potential for a 12,000 sf +/- office, but the site makes for an ideal restaurant given thedemographics.

With a valuation of $275,000, the 1 acre of land comfortably meets the market compared to similar land sales on AtlantaHwy in the past. This land allows investors to be creative with the additions they would make to the subject property toadd overall value to their initial investment.

AERIAL PHOTOS

SOMERSET SHOPPES

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SOMERSET SHOPPES LAND

SALES COMPARABLES MAP

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SOMERSET SHOPPES LAND(SUBJECT)

Atlanta Hwy Comp

Land Comp 2

SALES COMPARABLES

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PROPERTY NAMESOMERSET SHOPPES LAND

SALES COMPARABLES

Avg. $6.58

$0.00

$0.70

$1.40

$2.10

$2.80

$3.50

$4.20

$4.90

$5.60

$6.30

$7.00

SomersetShoppes

Land

AtlantaHwy Comp

Land Comp 2

Average Price Per Square Foot

Avg. $286,487

$0

$30,000

$60,000

$90,000

$120,000

$150,000

$180,000

$210,000

$240,000

$270,000

$300,000

SomersetShoppes

Land

AtlantaHwy Comp

Land Comp 2

Average Price Per Acre

SALES COMPARABLES SALES COMPS AVG

PROPERTY NAME

MARKETING TEAM

SOMERSET SHOPPES LAND

SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1

rentpropertyaddress1

rentpropertyname1

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SALES COMPARABLES

Asking Price $275,000

Down Payment $275,000

Down Payment % 100%

Price/SF $6.31

Lot Size (Acres) 1 acre(s)

Price/Acre $275,000

SOMERSET SHOPPES LAND7730 Atlanta Hwy, Montgomery, AL, 36117

ENTITLED: YES | PERMIT READY: YES

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Close of Escrow 8/25/2013

Sales Price $325,000

Price/SF $6.84

Lot Size (Acres) 1.09

Price/Acre $298,165

ATLANTA HWY COMP 8137 Decker Ln, Montgomery, AL, 36117

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Close of Escrow 10/12/2017

Sales Price $360,000

Price/SF $6.31

Lot Size (Acres) 1.31

Price/Acre $274,809

LAND COMP 28149 Decker Ln, Montgomery, AL, 36117

SOMERSET SHOPPES

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FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS

SOMERSET SHOPPES

OPERATING STATEMENT

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FINANCIAL ANALYSIS

SOMERSET SHOPPES

PRICING DETAIL

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FINANCIAL ANALYSIS

SOMERSET SHOPPES

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TENANT SUMMARY

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MARKET

OVERVIEW

Montgomery is the capital city of Alabama and serves as the countyseat of Montgomery County. In 2010 Census, Montgomery'spopulation was 205,764, which placed it as the second largest city inAlabama and the 118th most populous city in the United States. TheMontgomery Metropolitan Statistical area was estimated at 374,536which is the fourth largest in the state and the 136th among UnitedStates metropolitan areas.

The city was incorporated in 1819 as a merger of two towns situatedalong the Alabama River. It became the state capital in 1846,representing the shift of power to the south-central area of Alabamawith the growth of cotton as a commodity crop of the Black Belt andthe rise of Mobile as mercantile port on the Gulf Coast. In February1861, Montgomery was chosen the first capital of the ConfederateStates of America, which it remained until the Confederate seat ofgovernment moved to Richmond, Virginia. In the middle of the 20th

Century, Montgomery was a major Center of events and protests inthe civil rights movement, including the Montgomery Bus Boycott andthe Selma To Montgomery Marches.

In addition to housing many Alabama government agencies,Montgomery also has a large military presence (Maxwell Air ForceBase), public universities (Alabama State University, Troy Universityat Montgomery, Auburn University at Montgomery), two privateinstitutions (Faulkner University, Huntingdon College), high-techmanufacturing (Hyundai Motor Manufacturing Plant) and manycultural attraction, such as the Alabama Shakespeare Festival andthe Montgomery Museum of Fine Arts.

Montgomery has also been recognized nationally for its downtownrevitalization and new urbanism projects. In the early 2000s, the cityconstructed the Montgomery Biscuits minor league baseball stadiumand Riverfront Park. Following those developments, hundreds ofmillions of dollars have been invested by private companies that haveadapted old warehouses and office buildings into loft apartments,restaurants, retail, hotels and businesses. The demand for downtownliving space has risen, as people want to have walkable, livelyneighborhoods.

Montgomery, Alabama

PROPERTY NAME

MARKETING TEAM

SOMERSET SHOPPES

DEMOGRAPHICS

Source: © 2018 Experian

Created on March 2019

POPULATION 1 Miles 3 Miles 5 Miles 2023 Projection

Total Population 6,589 37,229 89,213

2018 Estimate

Total Population 5,909 34,678 82,259

2010 Census

Total Population 6,030 34,421 80,678

2000 Census

Total Population 2,828 27,461 62,000

Current Daytime Population

2018 Estimate 4,312 37,567 90,853

HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2023 Projection

Total Households 3,195 16,136 37,404

2018 Estimate

Total Households 2,728 14,650 33,926

Average (Mean) Household Size 2.20 2.33 2.35

2010 Census

Total Households 2,812 14,605 33,539

2000 Census

Total Households 1,103 11,114 25,387

Occupied Units

2023 Projection 3,195 16,136 37,404

2018 Estimate 2,960 16,251 37,650

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2018 Estimate

$150,000 or More 10.85% 13.33% 10.83%

$100,000 - $149,000 21.09% 15.24% 16.05%

$75,000 - $99,999 16.48% 13.98% 14.04%

$50,000 - $74,999 21.30% 19.98% 19.72%

$35,000 - $49,999 13.58% 13.74% 13.96%

Under $35,000 16.67% 23.74% 25.39%

Average Household Income $90,627 $92,396 $85,585

Median Household Income $72,649 $63,842 $61,819

Per Capita Income $41,863 $39,572 $35,650

HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 MilesTotal Average Household Retail Expenditure $74,292 $70,232 $69,507

Consumer Expenditure Top 10 Categories

Housing $18,195 $16,950 $16,739

Transportation $15,635 $14,473 $14,110

Shelter $9,497 $8,807 $8,695

Personal Insurance and Pensions $7,604 $6,891 $6,713

Food $7,078 $6,633 $6,560

Health Care $5,831 $5,516 $5,302

Utilities $4,701 $4,455 $4,404

Entertainment $3,101 $2,881 $2,811

Cash Contributions $2,833 $2,665 $2,551Household Furnishings and Equipment $1,688 $1,550 $1,517

POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population By Age

2018 Estimate Total Population 5,909 34,678 82,259

Under 20 20.69% 23.23% 23.46%

20 to 34 Years 22.56% 21.75% 22.20%

35 to 39 Years 6.94% 7.01% 7.42%

40 to 49 Years 12.45% 12.43% 13.13%

50 to 64 Years 20.26% 20.26% 19.33%

Age 65+ 17.09% 15.33% 14.47%

Median Age 39.85 38.55 37.89

Population 25+ by Education Level

2018 Estimate Population Age 25+ 4,332 24,352 57,349

Elementary (0-8) 0.45% 1.00% 1.19%

Some High School (9-11) 1.59% 3.83% 4.67%

High School Graduate (12) 16.63% 18.16% 19.21%

Some College (13-15) 18.05% 21.31% 21.29%

Associate Degree Only 5.99% 7.46% 7.53%

Bachelors Degree Only 31.81% 27.53% 26.39%

Graduate Degree 24.79% 20.21% 19.22%

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IncomeIn 2018, the median household income for your selected geography is$63,842, compare this to the US average which is currently $58,754.The median household income for your area has changed by 15.63%since 2000. It is estimated that the median household income in yourarea will be $73,954 five years from now, which represents a changeof 15.84% from the current year.

The current year per capita income in your area is $39,572, comparethis to the US average, which is $32,356. The current year averagehousehold income in your area is $92,396, compare this to the USaverage which is $84,609.

PopulationIn 2018, the population in your selected geography is 34,678. Thepopulation has changed by 26.28% since 2000. It is estimated thatthe population in your area will be 37,229.00 five years from now,which represents a change of 7.36% from the current year. Thecurrent population is 46.67% male and 53.33% female. The medianage of the population in your area is 38.55, compare this to the USaverage which is 37.95. The population density in your area is1,226.74 people per square mile.

HouseholdsThere are currently 14,650 households in your selected geography.The number of households has changed by 31.82% since 2000. It isestimated that the number of households in your area will be 16,136five years from now, which represents a change of 10.14% from thecurrent year. The average household size in your area is 2.33 persons.

EmploymentIn 2018, there are 27,359 employees in your selected area, this is alsoknown as the daytime population. The 2000 Census revealed that78.10% of employees are employed in white-collar occupations inthis geography, and 21.40% are employed in blue-collar occupations.In 2018, unemployment in this area is 2.92%. In 2000, the averagetime traveled to work was 22.00 minutes.

Race and EthnicityThe current year racial makeup of your selected area is as follows:45.65% White, 46.04% Black, 0.05% Native American and 5.74%Asian/Pacific Islander. Compare these to US averages which are:70.20% White, 12.89% Black, 0.19% Native American and 5.59%Asian/Pacific Islander. People of Hispanic origin are countedindependently of race.

People of Hispanic origin make up 2.06% of the current yearpopulation in your selected area. Compare this to the US average of18.01%.

PROPERTY NAME

MARKETING TEAM

SOMERSET SHOPPES

HousingThe median housing value in your area was $191,860 in 2018,compare this to the US average of $201,842. In 2000, there were7,870 owner occupied housing units in your area and there were3,244 renter occupied housing units in your area. The median rent atthe time was $528.

Source: © 2018 Experian

DEMOGRAPHICS

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DEMOGRAPHICS

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