Dickson Street Retail - Fayetteville, AR by STRIVE

DICKSON STREET RETAIL FAYETTEVILLE, AR

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PIERSON RETAIL ADVISORS & THE VITORINO GROUP

Pierson Retail Advisors and the Vitorino Group announce they have entered into a definitive agreement to merge and combine their operations. Together, Pierson and Vitorino have sold nearly $3 billion in commercial real estate. The new firm will be called Strive.

PRICING & FINANCIAL ANALYSIS

DICKSON STREET RETAIL

FINANCIAL ANALYSIS

Dickson Street Retail 412 West Dickson Street Fayetteville, AR 72701

Offering Summary Price Cap Rate Net Operating Income Occupancy Year Built Lot Size

4.50% $144,510 100% 2017 3,310 SF

PROPERTY DESCRIPTION

Gross Leasable Area

$3,210,000

.145 Acres

MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Â© 2017 Vitorino Group and Pierson Retail Advisors

RENT ROLL

DICKSON STREET RETAIL

Sq Ft

% of Sq Ft

Start

End

Annual Rent

PSF

Escalation Date

Escalation Amount

Options

Lease Type

Taco Bell Cantina

1,655

50.0%

6/1/2016

5/31/2026

$69,510

$42.00

6/1/2017

$42.42

6x5

NNN

Pickleman’s Gourmet Cafe

1,655

50.0%

12/1/2016

11/30/2026

$75,000

$45.32

12/1/2021

$49.85

4x5

NNN

Occupied

3,310

100.0%

0.0%

3,310

100.0%

Vacant Total

FINANCIAL ANALYSIS

Tenant

$144,510

PROPERTY DESCRIPTION MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 Vitorino Group and Pierson Retail Advisors

TENANT INFORMATION

DICKSON STREET RETAIL

Company Ownership Market Cap Taco Bell is an American chain of fast-food restaurants based in Irvine, California. A subsidiary of Yum! Brands, Inc., they serve a variety of TexMex foods, including tacos, burritos, quesadillas, nachos, other specialty items, and a variety of “value menu” items. Taco Bell serves more than 2 billion customers each year in 7,000 restaurants, more than 80 percent of which are owned and operated by independent franchisees and licensees.

Credit Rating

Taco Bell Subsidiary of Yum! Brands 22.58B Standard & Poor’s: BB

Years In Business

20 Years

Number of Locations

43,500+

Headquarters Website

FINANCIAL ANALYSIS

Company Overview

Louisville, KY www.yum.com

PROPERTY DESCRIPTION

Tenant Overview Tenant Ownership K-MAC Enterprises Inc. is a leading operator of Taco Bell, KFC and Long John Silvers quick-service restaurants, with more than 290 locations. The company’s restaurants, franchised from YUM! Brands, are located in Arkansas, Illinois, Indiana, Kentucky, Mississippi, Missouri, Oklahoma, Tennessee, and Texas.

Years In Business Number of Locations Headquarters Website

K-MAC Enterprises, Inc. Private 52 Years 290+ Fort Smith, AR www.kmaccorp.com

Tenant Ownership Pickleman’s focuses above all on using the highest quality product and creating profound and unique flavor profiles people love. Offering a wide array of all natural products with the freshest ingredients gives their Toasted Sandwiches, Pizzas, Soups, Salads and Desserts a quality that sets them apart.

Years In Business Number of Locations Headquarters Website

MARKET OVERVIEW

Tenant Overview Pickleman’s Gourmet Cafe Private 12 Years 20 + Hallsville, MO www.picklemans.com

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 Vitorino Group and Pierson Retail Advisors

TENANT INFORMATION

DICKSON STREET RETAIL

FINANCIAL ANALYSIS

Representative Photo

PROPERTY DESCRIPTION

Representative Photo

MARKET OVERVIEW

Taco Bell Cantina, Taco Bell’s recent cantina concept, is modeled to be integrated into urban environments, featuring an open kitchen and television monitors. The stores also serve alcoholic drinks, unlike their regular Taco Bell locations. The new chain of Taco Bell Cantina’s are said to focus on urban environments, with a focus on digitization of their services and a localization of their interiors. Ideally the new push is suited to fit in with pedestrian areas without drive-thrus. The menu features tapas-style sharing plates of nachos, quesadillas, and chicken fingers alongside a wide-range of customizable slushies. Guests can choose flavors like margarita, piña colada, or berry blast and later decide to add liquor, ranging from tequila to spiced rum. Five other Taco Bell Cantina restaurants have already opened in San Francisco, Las Vegas, Chicago, Austin and California, according to Taco Bell.

Representative Photo

INVESTMENT HIGHLIGHTS

DICKSON STREET RETAIL

FINANCIAL ANALYSIS

• Trophy Asset - Complete Redevelopment for New Taco Bell Cantina and Pickleman’s Gourmet Cafe Locations • Strong Tenant Line-Up - Long-Term NNN Leases and Scheduled Escalations • Adjacent to The University of Arkansas – Enrollment Exceeds 27,000 Students and 4,400 Faculty and Staff

PROPERTY DESCRIPTION

• Plans for Razorbacks Football Stadium Renovation – Increased Alumni and College Football Fan Presence Above the 72,000 Stadium Capacity • Dickson Street is the Epicenter of Entertainment and Eatery Hub for Students, Locals and Tourists – Major Pedestrian Traffic • Irreplaceable Real-Estate – Part of Dickson Street Commercial Historic District that Guarantees Property Never to be Vacant • Fayetteville has Strong Barrier to Entry Making Existing Property More Valuable

MARKET OVERVIEW

• Areas Young Demographic Great for the Quick Service Tenant Line-up • The University of Arkansas is the 7th FastestGrowing Public University in the Country

DIC

STR

SITE PLAN

DICKSON STREET RETAIL

FINANCIAL ANALYSIS PROPERTY DESCRIPTION MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. ÂŠ 2017 Vitorino Group and Pierson Retail Advisors

AERIAL MAP

DICKSON STREET RETAIL

PROPERTY DESCRIPTION

N WEST AVE

FINANCIAL ANALYSIS

W DICKSON ST

LOCAL MAP

DICKSON STREET RETAIL

REGIONAL MAP

DICKSON STREET RETAIL

MARKET SUMMARY

DICKSON STREET RETAIL

FINANCIAL ANALYSIS in session, thousands of students on campus dramatically change the city’s demographics. Thousands of Arkansas Razorbacks alumni and fans travel to Fayetteville to attend football, basketball, and baseball games.

Fayetteville is on the outskirts of the Boston Mountains, deep within the Ozarks. Known as Washington until 1829, the city was named after Fayetteville, Tennessee, from which many of the settlers had come. It was incorporated on November 3, 1836 and was rechartered in 1867.

Fayetteville is currently ranked as the most affordiable place to live according to U.S. News & World Report. It is also seeing a steady influx of new residents, growing by 4.6% due to net migration between 2010 and 2014. U.S. News also analyzed 100 cities in the United States to find the best places to live based on quality of life and the job market in each city, as well as the value of living there and people’s desire to live there. Fayetteville ranks as #3 with an overall score of 7.5 out of 10. Based in nearby Bentonville, the Walmart corporation contributes to Fayetteville’s economy. The city hosts the Wal-Mart Shareholders Meetings each year at the Bud Walton Arena.

The four county Northwest Arkansas area is ranked 105th in terms of population in the United States with 463,204 in 2010 according to the U.S. Census Bureau. The city had a population of 73,580 at the 2010 Census. Fayetteville is home to the University of Arkansas, the state’s largest university. When classes are

MARKET OVERVIEW

Fayetteville is the third-largest city in Arkansas and county seat of Washington County. The city is centrally located within the county and has been home of the University of Arkansas since the institution’s founding in 1871.

PROPERTY DESCRIPTION

FAYETTEVILLE, AR

DEMOGRAPHIC SUMMARY

DICKSON STREET RETAIL

Geography: 5 miles

FINANCIAL ANALYSIS

Population In the identified area, the 2016 population was 89,898. The rate of change since 2000 was 37.79%. The five-year projection for the population in the area was 99,051 representing a change of 10.18% from 2016 to 2021. The population was 50.3% male and 49.7% female. The median age in this area was 28.7, compared to the U.S. median agoe of 38.0.

Households There were 37,556 households in your selected georgraphy in 2016. The number of households changed by 41.33% since 2000. It is estimated that the number of households in your area will be 41,556 in 2021, which represents a change of 10.65% in five years. The average household size in your area was 2.21 persons.

Income PROPERTY DESCRIPTION

In 2016, the median household income for your selected geography was $37,953, compared to the entire U.S. average, which was $54,149. It is estimated that the median household income in your area will be $41,732 in 2021, which represents a change of #9.96% from 2016. The per capita income in your area was $25,513, compared to the entire U.S. average, which was $29,472. The average household income in your area was $59,353, compared to the entire U.S. average, which is $77,008.

Race and Ethnicity The 2016 racial makeup of your selected area was as follows: 81.5% White, 6.3% Black, 1.1% Native American and 4.0% Asian/Pacific Islander. Compare these to the entire U.S. averages which are: 71.60% White, 12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin made up 7.8% of the population in your selected area. Compare this to the entire U.S. average of 17.9%.

Housing MARKET OVERVIEW

In 2016, there were 15,225 owner occupied housing units in your area and there were 22,330 renter occupied housing units in your area. Median home value in the area was $185,995, compared to a median home value of $198,891 for the U.S.

Employment In 2016, there were 48,565 employees in your selected area; this is also known as the daytime population. 68.5% of employees were employed in white-collar occupations in this geography, and 11.5% were employed in blue-collar occupations. In 2016, unemployment in this area was 4.2%. Demographic data ÂŠ 2016 esri This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. ÂŠ 2017 Vitorino Group and Pierson Retail Advisors

DEMOGRAPHIC STATISTICS 1 Mile

3 Miles

5 Miles

Income

1 Mile

3 Miles

5 Miles

2000 Population

12,440

44,332

65,245

$ 0 - $14,999

34.0%

25.3%

19.8%

2010 Population

14,081

50,847

80,107

$ 15,000 - $24,999

21.1%

17.9%

15.4%

2016 Population

15,570

56,167

89,898

$ 25,000 - $34,999

10.0%

9.6%

9.0%

2021 Population

16,740

61,363

99,051

$ 35,000 - $49,999

10.7%

12.2%

11.0%

$ 50,000 - $74,999

9.3%

14.1%

16.1%

$ 75,000 - $99,999

5.1%

7.8%

9.8%

$100,000 - $149,999

3.9%

7.5%

11.1%

3.3%

3.1%

4.4%

1 Mile

3 Miles

5 Miles

$200,000 +

2.6%

2.5%

3.3%

2000 Households

4,560

18,515

26,574

2016 Median Household Income

$23,184

$30,969

$37,953

2010 Households

4,665

21,658

33,351

2016 Per Capita Income

$17,987

$22,582

$25,513

2016 Households

5,388

24,108

37,556

2016 Average Household Income

$44,934

$53,428

$64,435

2021 Households

6,039

26,582

41,556

2016 Daytime Population

7,211

30,209

48,565

2016 Average Household Size

1.78

2.05

2.21

2010 Owner Occupied Housing Units

20.2%

28.0%

36.7%

2010 Renter Occupied Housing Units

64.6%

55.5%

48.6%

2010 Vacant

15.2%

16.5%

14.7%

2016 Owner Occupied Housing Units

18.6%

26.1%

34.8%

2016 Renter Occupied Housing Units

67.0%

58.3%

51.0%

2016 Vacant

14.4%

15.6%

14.2%

2021 Owner Occupied Housing Units

18.1%

25.8%

34.6%

2021 Renter Occupied Housing Units

67.8%

58.8%

51.5%

2021 Vacant

14.2%

15.4%

14.0%

PROPERTY DESCRIPTION

$150,000 - $199,999 Households

FINANCIAL ANALYSIS

Population

DICKSON STREET RETAIL

Traffic Counts

MARKET OVERVIEW

8,800

CONFIDENTIALITY AGREEMENT The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Vitorino Group and Pierson Retail Advisors and it should not be made available to any other person or entity without the written consent of Vitorino Group and Pierson Retail Advisors. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Vitorino Group and Pierson Retail Advisors. This offering memorandum has been prepared to provide summary, unverified financial and physical 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. Vitorino Group and Pierson Retail Advisors 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, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenantâ&#x20AC;&#x2122;s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, Vitorino Group and Pierson Retail Advisors has not verified, and will not verify, any of the information contained herein, nor has Vitorino Group and Pierson Retail Advisors 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. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE VITORINO GROUP AND PIERSON RETAIL ADVISORS AGENT FOR MORE DETAILS.

Net Lease Disclaimer Vitorino Group and Pierson Retail Advisors 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, the Vitorino Group and Pierson Retail Advisors has not and will not verify any of this information, nor has the Vitorino Group and Pierson Retail Advisors conducted any investigation regarding these matters. The Vitorino Group and Pierson Retail Advisors 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. The Vitorino Group and Pierson Retail Advisors 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 The Vitorino Group and Pierson Retail Advisors 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.

Approved by the Texas Real Estate Commission for Voluntary Use Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

Information About Brokerage Services

efore working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner’s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer’s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly. IF THE BROKER REPRESENTS THE OWNER: The broker becomes the owner’s agent by entering into an agreement with the owner, usually through a written - listing agreement, or by agreeing to act as a subagent by accepting an offer of subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner’s agent anything the buyer would not want the owner to know because an owner’s agent must disclose to the owner any material information known to the agent. IF THE BROKER REPRESENTS THE BUYER: The broker becomes the buyer’s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer’s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer’s agent anything the owner would not want the buyer to know because a buyer’s agent must disclose to the buyer any material information known to the agent. IF THE BROKER ACTS AS AN INTERMEDIARY: A broker may act as an intermediary between the parties if the broker complies with The Texas Real Estate License Act. The broker must obtain the written consent of each party to the transaction to act as an

intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermediary in a transaction: (1) shall treat all parties honestly; (2) may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner; (3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and (4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property. With the parties’ consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party. If you choose to have a broker represent you, you should enter into a written agreement with the broker that clearly establishes the broker’s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding.

Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records.

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