Plaza Santa Fe Square

OFFE RI N G ME MOR A NDUM

3531 Zafarano Drive f Santa Fe, NM 87507

N AT I O N A L R E TA I L PA R T N E R S

DEBT & STRUCTURED FINANCE

CHRIS COZBY Executive Vice President +1 214 979 6579

CHRIS GERARD Senior Vice President +1 214 979 6578

JIM DOUNTAS Vice President +1 505 837 4999

BLAINE DOZIER Associate +1 214 979 6517

SCOTT LEWIS Senior Vice President +1 214 979 5605

chris.cozby@cbre.com

chris.gerard@cbre.com

jim.dountas@cbre.com

blaine.dozier@cbre.com

scott.lewis@cbre.com

Š 2016 CBRE, Inc. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. TX/OK

3531 Zafarano Drive f Santa Fe, NM 87507

TA B L E O F

Contents

01 Executive Summary

4

02 Property Highlights

16

03 Market Overview 29

04 Financial Analysis 35

Summary

EXECUTIVE

THE OFFERING CBRE’s National Retail Partners is excited to exclusively present the opportunity to acquire Plaza Santa Fe (“Property”). Plaza Santa Fe is a dominant, best-in-class, super-regional power center in Santa Fe, New Mexico. The Property benefits from a coveted location in the retail epicenter of a large trade area catering to 9 counties. The shopping center is 99% occupied and features a strong tenant lineup including Ulta, TJ Maxx, Ross, Best Buy, Michaels, and PetSmart, many of which have had remarkably successful sales histories at the Property.

The acquisition of Plaza Santa Fe provides investors with an opportunity to acquire an institutional quality power center with a highly stable income stream and superior tenancy in one of the most visited locations in New Mexico.

Plaza Santa Fe is being offered without an asking price.

An Offer Date will be announced by the Brokers via email.

Visit the property website at: www.plaza-santa-fe.com I N V E S T M E N T S U M M A RY

SIZE (SF)

YEAR BUILT

LAND AREA

OCCUPANCY

224,223 sf

2000

17.7 acres

99.44%

PRICE

IN-PLACE NOI

DEBT

Unpriced

3,238,253

Free & Clear

ANCHORS

Ulta • TJ Maxx • Ross • Best Buy • Michaels • PetSmart

Executive Summary

5

OFFE RI N G M E M O R A N D U M

INVESTMENT HIGHLIGHTS

Plaza Santa Fe’s immediate surroundings represent 22% of Santa Fe’s Retail Market

H I G H LY C O V E T E D L O C AT I O N

Plaza Santa Fe is located on Cerrillos Road, the main thoroughfare in Santa Fe. An estimated 32,900 vehicles per day pass the Property along Cerrillos Road, with another 30,000 vehicles per day in eyesight on Rodeo Road. The access and visibility has turned the .5 mile radius at Cerrillos and Rodeo Road into the most active and desirable location in Santa Fe. Santa Fe Place Mall

N

RO DE O RO AD AIRPOR

SAM’S CLUB

T ROAD

Found from website Recreate PMS

LL CERRI

AD OS RO

EXISTING SUPPLY (SF)

ZAFARANO DRIVE

6

Executive Summary

AVAILABLE (SF) OCCUPANCY AVERAGE RENTAL RATE

SANTA FE RETAIL MARKET

PLAZA SANTA FE RETAIL MARKET

8,556,570

1,892,467

259,756

46,884

98%

98.4%

$16.55

$25.77

OF F E R ING ME MOR A NDUM

SANTA FE MALL Located directly across from the Property is the largest mall in Northern New Mexico and fourth largest in all of the state.

589,500 square feet on 24 acres Regional magnet for consumers throughout an expansive trade area across New Mexico Anchored by a brand new Bed Bath and Beyond Dillard’s World Market JC Penney

Executive Summary

7

OFFE RI N G M E M O R A N D U M

NATIONAL CREDIT WORTHY TENANCY This regional power center’s tenant lineup is bolstered by an enviable collection of national, credit-worthy retailers including Ulta, TJ Maxx, Ross Dress for Less, Best Buy, Michaels and PetSmart. This tenant lineup provides income security combined with strong drawing power to attract shoppers and other retailers.

National Tenants make up 99% of the Property’s GLA and 98% of its revenue stream ANCHOR TENANTS

*Lease Pending

TOTAL

% OF REVENUE

HISTORICAL OCCUPANCY (YEARS)

$13.00

11%

7

14%

$16.00

13%

15

30,900

14%

$12.07

10%

16

B+

20,280

9%

$15.00

8%

16

NR

20,115

9%

$16.00

9%

0

B+

20,010

9%

$17.30

9%

15

NR

15,407

7%

$20.75

8%

4

169,390

76%

$15.73

68%

11

S&P

SIZE (SF)

% OF GLA

A-

31,452

14%

BBB-

31,226

A+

* Signed LOI by a high-end national retailer with over 145 locations.

8

Executive Summary

RENT PSF

OF F E R ING ME MOR A NDUM

SECURE INCOME STREAM WITH STRONG HISTORICAL OCCUPANCY ›› The Property is 99.4% occupied and features a highly stable rent roll, bolstered by national retailers with strong historical occupancies

›› Over 45% of the Property’s GLA will have rental increases in the next 10 years

›› Collectively, the tenants have called Plaza Santa Fe home for a weighted average of over 10 years

› › Since 2013 the Property has consistently remained more than 98% occupied

› › Staples recently did not exercise their option, the suite was immediately filled by a 10 year lease

RECENT LEASING MOMENTUM As of 1/31/2017, Staples option to renew expired. In anticipation of Staples not exercising their final option, ownership was able to negotiate a backup lease for Suite 011. A high-end national retailer with over 145 locations submitted an LOI in advance of the renewal date for a 10 year lease with higher rents and a future rent bump. The aggressiveness of the LOI speaks to the centers success. See financials and notes for additional details.

9

O FFERI N G M E M O R A N D U M

STRONG RETAILER PERFORMANCES Plaza Santa Fe’s exclusive tenancy and prominent location support exceptional tenant sales performance.

4.22% HEALTH RATIO

$10,500,000.00

18% HIGHER

$10,000,000.00

$1,500,000 $1,450,000 $1,400,000

$9,500,000.00

7.80% HEALTH RATIO

14% HIGHER

$1,350,000

$9,000,000.00

$1,300,000

$8,500,000.00

$1,250,000

$8,000,000.00

(sales PSF)

National Avg

Plaza Santa Fe Avg

$1,200,000

National Avg

(annual sales)

Plaza Santa Fe Avg

PA C I F I C D E N TA L $900 $800

$160

3.03% HEALTH RATIO

$150 $140

79% GROWTH

$700

$120

$600 $500 (sales PSF)

$110 2013

2014

2015

$230

10.5% GROWTH

$210 $205

Executive Summary

2013

2014

2015

12% HIGHER

$1,500,000.00

$215

10

(annual sales)

$1,550,000.00

$220

(sales PSF)

$100

$1,600,000.00

$225

$200

44.5% GROWTH

$130

$1,450,000.00 $1,400,000.00 $1,350,000.00

2014

2015

$1,300,000.00 (annual sales)

National Avg

Plaza Santa Fe Avg

OF F E R ING ME MOR A NDUM

EXPANSIVE TRADE AREA

DESTINATION RETAILERS

Encompassing a wide-ranging, 9 county combined Albuquerque-Santa FeLas Vegas statistical area with a population of over 647,700 people, Plaza Santa Fe is an ideal shopping destination for consumers from well beyond the immediate Santa Fe city limits.

Benefiting from the expansive trade area, The Property’s anchor tenants are strategically spaced throughout Northern New Mexico, significantly increasing the likelihood of buyers choosing Plaza Santa Fe.

DISTANCES TO NEXT RETAILERS FROM PLAZA SANTA FE DIRECTION

APPROXIMATE DISTANCE

North

198 miles

South

47 miles

East

228 miles

West

141 miles

Executive Summary

11

O FFERI N G M E M O R A N D U M

HIGH GROWTH DEMOGRAPHICS The area surrounding Plaza Santa Fe continues to grow as the city becomes more popular, since 2000 the population in a 1 mile radius has almost doubled.

1 MILE 10,415

53,827

87,293

2021 Population

11,185

55,810

91,537

2000 Population

6,949

44,830

72,287

Percent Pop Change: 2000 to 2016

49.88%

20.07%

20.76%

Percent Pop Change: 2016 to 2021

1.44%

0.73%

0.95%

Daytime Population

9,102

30,972

72,725

$50,319

$60,615

$67,176

$208,038

$250,847

$323,161

2016 Average Home Value

Executive Summary

5 MILE

2016 Population

2016 Average Household Income

12

3 MILE

OF F E R ING ME MOR A NDUM

SANTA FE ECONOMIC ADVANTAGE Santa Fe serves as the head of an MSA which encompasses all of Santa Fe County and is part of the larger Albuquerque-Santa Fe-Las Vegas combined statistical area.

TOURISM

Santa Fe’s economy has been based largely on tourism due to its unique offering of art culture, world renowned cuisine, ancient traditions and close proximity to ski resorts. Santa Fe receives an average of 1.6 million visitors annually, boosting the city’s retail industry by bringing in more than $1 billion annually.

Internal tourism is increasing as there is a steady flow of retirees to the area.

#1 U.S City for Shopping

CUISINE

More than 400 restaurants that range from fine dining to uber-casual, and the scene continues to blossom with restaurants embracing artisan and farm-to-table craft foods and beverages

America’s 7th Best Food City – Conde Nast, 2014 Top Ten Farmer’s Market in the US – USA Today 10Best

ACTIVITIES

Skiing, Snowboarding Hiking, Biking, Golf, Horseback riding, and more are all in close proximity

13

O FFERI N G M E M O R A N D U M

ARTS

Country’s 3rd largest art market #4 City for Museums & Galleries – Travel + Leisure Top 25 Small City for Art – American Style Magazine A C C O M M O D AT I O N S

Santa Fe appeals to a wide range of tourists with its wide range of accommodations from high-end resorts and hotels, to charming bed and breakfasts

H E A LT H C A R E

Santa Fe has become the region’s hub for medical advancement; St. Vincent Regional Medical Center is one of the city’s largest employers and serves seven counties.

GOVERNMENT

As the capitol of New Mexico, the government is the largest employer in the area

14

Executive Summary

OF F E R ING ME MOR A NDUM

OFFERING TERMS N AT I O N A L R E TA I L PA R T N E R S

3531 Zafarano Drive f Santa Fe, NM 87507 FREE AND CLEAR

The Property is being offered for sale without financing in place, allowing an investor to pursue its desired leverage levels meeting its fund or investment objectives.

The Property’s strong location combined with its highly stable, Class “A” tenancy will make the Property very attractive to the lending community. CBRE’s Debt & Structured Finance group is available for financing quotes and assistance.

CHRIS COZBY Executive Vice President +1 214 979 6579 chris.cozby@cbre.com

CHRIS GERARD Senior Vice President +1 214 979 6578 chris.gerard@cbre.com

JIM DOUNTAS Vice President +1 5058374999 jim.dountas@cbre.com

BLAINE DOZIER Associate +1 214 979 6517 blaine.dozier@cbre.com DEBT & STRUCTURED FINANCE SCOTT LEWIS Senior Vice President +1 214 979 5605 scott.lewis@cbre.com

SALES TERMS

Plaza Santa Fe is being offered on an “as-is” basis with ownership making no representations or warranties with respect to the accuracy or completeness of the offering memorandum or any and all documents delivered to an acquisition prospect for the purpose of performing due diligence. Plaza Santa Fe is offered without an asking price.

LEASEHOLD INTEREST

Not a fee simple interest, please refer to the war room for ground lease documents.

Executive Summary

15

PROPERTY

Highlights