Fairmeadows - Duncanville, TX

FA I R M E A D O W S S H O P P I N G C E N T E R 334-707 East Camp Wisdom Road D u n c a n v i l l e , Te x a s 7 5 11 6

:: offering memorandum

Capital Markets | Investment Properties

TA B L E O F C O N T E N T S 1 Executive Summary....................................3 Investment Profile Investment Overview Highlights & Features

2

Market and Asset Overview....................8 Property Summary Select Tenant Summaries Location Map Aerials Site Plan Rent Comparables Demographics Market Summary

3

Financials....................................................21 Rent Roll Estimated Reimbursement Revenue Tenant Notes Income & Expense Analysis Expiration Schedule

EXECUTIVE SUMMARY

FAIRMEADOWS SHOPPING CENTER

INVESTMENT PROFILE PRICE:

$7,500,000

PRICE PSF:

$66

NOI:

$521,735

CAP RATE:

6.96%

OCCUPANCY:

55.43%

GLA:

± 113,861 square feet

LAND AREA:

± 11.57 acres

YEAR BUILT:

1963, 1969, 1973

EXISTING DEBT:

Free and Clear

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FAIRMEADOWS SHOPPING CENTER

Tenant

SF

% of Center

Expiration

Advanced Auto Parts

6,889

6.05%

Jan-31

99 Cent Only Stores

18,728

16.45%

Jan-26

Popeyes

1,700

1.49%

Apr-24

Firestone

5,740

5.90%

Jun-23

A-Max Auto Insurance

664

0.58%

Jul-19

INVESTMENT OVERVIEW Pierson Retail Advisors is pleased to offer Fairmeadows Shopping Center (“Property”) a ± 113,861 square foot retail center located at the southwest corner of Camp Wisdom Road and Oriole Boulevard in Duncanville, Texas.

Situated just south of Interstate 20, the Property is currently 55.4% occupied by a diverse mix of national, regional, and local tenants including 99 Cents Only Stores, Advance Auto Parts, Firestone, Popeye’s, and A-Max Insurance, among others.

Fairmeadows Shopping Center provides an investor the opportunity to acquire a well-positioned value-add shopping center within a dense, established trade area.

5

FAIRMEADOWS SHOPPING CENTER

HIGHLIGHTS & FEATURES Sought After Value-Add Opportunity: Fairmeadows Shopping Center is currently 55.4% occupied providing investors the opportunity to see substantial NOI growth through the lease-up of the remaining vacancies totaling over 50,000 square feet as well as increasing below market rents as leases expire. Furthermore, 64.1% of the existing tenants have base rent escalations structured into their leases virtually guaranteeing an increase to the NOI over the next several years.

Tiered Disposition Potential: There are several outparcel buildings which could be sold off separately in a strategy to reduce an investor’s basis.

Priced Well-Below Replacement Cost: At only $66 per square foot, the Property is being offered at a price well-below replacement cost.

Complementary Tenant Line-up: The Property has a complementary collection of tenants which serve the daily needs of the surrounding trade area. Anchored by 99 Cents Only Stores, the Property combines specialty retail, restaurants, and service tenants all generating steady traffic while promoting cross shopping with the remaining tenants in the Property.

Area Traffic Generators: The Property is situated at a signalized intersection just south of Interstate 20. Nearby retailers that drive consumer traffic include Kroger, Terry’s Supermarket, Family Dollar, Harbor Freight Tools, Jack in the Box, Quicktrip, Wendy’s, and Bank of America, among others.

Ample Access: The Property is strategically positioned at the southwest corner of the signalized intersection of Camp Wisdom Road and Oriole Boulevard. The Property benefits from a total of ten points of ingress/egress with convenient cross-access throughout.

6

FAIRMEADOWS SHOPPING CENTER

HIGHLIGHTS & FEATURES (CONT’D) High Traffic Counts: Fairmeadows benefits from its location on Camp Wisdom Road, a major connector in this portion of Dallas County. Camp Wisdom Road carries nearly 24,000 vehicles per day. Furthermore, Interstate 20 is a major highway system stretching from West Texas to South Carolina, has more than 161,800 travelers per day in Duncanville.

Solid Demographics: Fairmeadows benefits from its location within a densely populated, established trade area with future growth potential. Within a three mile radius of the Property there are 84,581 people increasing to 221,632 people within five miles. Since 2010, the area within five miles around the Property has seen more than 6% growth on average and is expected to grow by nearly 7% over the next five years on average within one, three and five miles. Furthermore, the average household incomes for the population bases within three and five miles is $56,371 and $58,593 respectively.

Duncanville: Centrally located in the Dallas/Fort Worth Metroplex, Duncanville is less 15 minutes from Dallas CBD and 30 minutes from Fort Worth. The City of Duncanville provides easy access to the Metroplex via several major thoroughfares including Interstate 20, Interstate 35, and Highway 67. These highway systems carry significant consumer traffic connecting the Property to many surrounding areas including DeSoto, Dallas, and Grand Prairie.

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FAIRMEADOWS SHOPPING CENTER

MARKET & ASSET OVERVIEW

FAIRMEADOWS SHOPPING CENTER

PROPERTY SUMMARY

ADDRESS:

334-707 E. Camp Wisdom Rd. 727 Oriole Blvd.

Duncanville, Texas 75116 Dallas County

SIGNAGE:

One pylon sign along Camp Wisdom Road, plus five individual tenant pole signs on Camp Wisdom Rd. and Oriole Blvd.

LEGAL DESCRIPTION:

Fairmeadows Village Blk P Pt, Lots 2R, 3, 4, 5, 6

INGRESS / EGRESS:

Ten points of ingress/egress surrounding the Property as well as cross-access throughout

BUILDING AREA:

± 113,861 square feet

STRUCTURE:

Concrete tilt-wall with brick and concrete veneer

LAND AREA:

Lot 2R: ± 9.852 acres Lot 5: ± 0.656 acres (Adv. Auto) Lot 3: ± 0.359 acres Lot 6: ± 0.503 acres (Firestone) Lot 4: ± 0.205 acres Total: ± 11.57 acres or ± 499,633 square feet

AGE OF ROOF:

Unknown

CONFIGURATION:

Seven, single story buildings

ROOF COMMENTS:

TPO Roofing System

YEAR BUILT:

1963, 1969, 1973

HVAC:

Individual roof mounted HVAC units

PARKING:

± 561 surface spaces (source 2008 Survey)

PARKING RATIO:

± 4.93 per 1,000 sf

TRAFFIC COUNTS:

Camp Wisdom Rd. ± 23,892 vpd Interstate 20 ± 161,899 vpd (source CoStar)

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FAIRMEADOWS SHOPPING CENTER

SELECT TENANT SUMMARIES

10

FAIRMEADOWS SHOPPING CENTER

Entity on Lease DBA Locations Website Ownership Credit Rating Annual Revenue Public/ Private Line of Business

99 Cents Only Stores Texas, Inc. 99 Cents Only Stores 392 stores in California, Texas, Arizona, & Nevada www.99only.com Corporate CCC+ (S&P) $2 Billion (2016) Private 99 Cents Only Store is a premier deep-discount retailer primarly carrying name-brand consumable and general merchandise as well as seasonal products.

Entity on Lease DBA Locations Website Ownership Credit Rating Annual Revenue Public/ Private Line of Business

Bridgestone/Firestone, Inc. (formerly The Firestone Tire & Rubber Company) Firestone Complete Autocare More than 1,600 locations nationwide www.firestone.com Corporate A (S&P) 26.08 Billion (2015) (Bridgestone Corporation) Public (Ticker Symbol: BRDCY) Firestone Complete Autocare provides high quality maintenance, repairs and tires for automobiles. Also backs services and repairs with a nationwide warranty that 's good at any of Firestone's locations nationwide.

Entity on Lease DBA Locations Website Ownership Credit Rating Annual Revenue Public/ Private Line of Business

Rahum Inc. Popeyes Chicken & Biscuits Operates and franchises over 2,000 Popeyes restaurants worldwide www.popeyes.com Franchisee Not rated $259 Million (2015) Private Founded in New Orleans in 1972, Popeyes is the world's second largest quick-service chicken concept (based on the number of units). Popeyes distinguishes itself with a unique "New Orleans" style menu that features spicy chicken, chicken tenders, fried shrimp and other seafood, as well as jambalaya, Red Beans and Rice and other regional items.

SELECT TENANT SUMMARIES

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FAIRMEADOWS SHOPPING CENTER

Entity on Lease DBA Locations Website Ownership Credit Rating Annual Revenue Public/ Private Line of Business

Straus-Frank Enterprises, LLC Advance Auto Parts Over 5,200 stores in the US, Puerto Rico, U.S. Virgin Islands, & Canada www.advanceautoparts.com Corporate BBB- (S&P) $9.74 Billion (2015) Public (Ticker Symbol AAP) Advance Auto Parts the largest automotive aftermarket parts provider in North America, serves both the professional installer and do-it-yourself customers.

Entity on Lease DBA Locations Website Ownership Credit Rating Annual Revenue Public/ Private Line of Business

A-Max Insurance Services, Inc. A-Max Auto Insurance More than 90 locations in 15 Texas cities www.amaxinsurance.com Corporate Not rated N/A Private A-MAX Auto Insurance is an industry leader that specializes in providing low cost insurance to thousands of Texas residents and businesses.

LOCATION MAP

Fairmeadows Shopping Center

12

FAIRMEADOWS SHOPPING CENTER

Orio

le B

oule vard

AERIAL

E Camp Wisdom Road

13

FAIRMEADOWS SHOPPING CENTER

AERIAL

Southwest Center Mall

oad

E C a m p Wisdom R

Terry’s Supermarket

14

FAIRMEADOWS SHOPPING CENTER

SITE PLAN

315B

32

6

651

315

328

663 707 705

312

306

330 334

408A 408 406

336A

727

402

336B

422 414

Tenant

Suite

Size

Firestone Tire

210

5,790

The Coaches Box

Risen Christ Family

326

4,404

Advance Auto Parts Looks of Beauty Popeye’s La Familia Agency

15

Tenant

Suite

Size

Tenant

Suite

Size

703/705

1,513

Helping Hands

330

2,250

Korner Shop

727

2,400

Herbalife

334

807

332

6,889

Available

402

7,085

Tax & Accounting

336B

750

336A

1,152

Forever Diva Stylist

707

958

Available

408

2,049

338

1,700

Available

315

4,200

Available

651

9,000

408A

1,673

Mint Dentist

406

3,020

99 Cents Only Store

410

18,728

Available

306

7,266

A-Max Insurance Service

414

664

Available

312

14,649

Wellshire Financial

422

1,385

Available

315B

6,499

Illana’s Salon & Spa Academy

663

5,062

Helping Hands

328

3,968

FAIRMEADOWS SHOPPING CENTER

RENT COMPARABLES Property Fairmeadows Shopping Center 334-707 E. Camp Wisdom Rd.  727 Oriole Blvd.

Duncanville, TX

113,861

Yr Built/ Renovated Occupancy 1963, 1969, 1973

55.4%

Major Tenants 99 Cents Only, Firestone, Popeyes, Advanced Auto, A-Max Insurance

Available SF

Rental Rates

NNN

$5.76 - $17.00 50,748

(inline)

$15.00 -$31.68*

$1.64

(outparcels)

1

Westgate Plaza 102 W Camp Wisdom Rd.

27,278

1970

90.3%

Kroger (shadow), Jefferson Dental, Boost Mobile, Judy's Café, First Cash Pawn

2,652

$10.00 - $12.00

$4.40

2

Liberty Square 211-215 W Camp Wisdom Rd.

54,440

1985

90.5%

Little Caesars, Great Clips, Fitness Now, Spicy Nails

5,150

$7.99 - $13.00

$3.38

3

Oriole Square 307 E Camp Wisdom Rd.

96,472

1982

95.2%

Terry's Supermarket, Agua Dental, Max Outlet, Baja Insurance

4,622

$12.00

$5.65

4

Red Bird Village 4343 W Camp Wisdom Rd.

84,327

2007

93.8%

Falles Parades, Dollar Tree, Taco Bell, Long John Silver, Kings Beauty Supply

5,241

$7.00-$20.00

$4.50

5

American Way Plaza 7010 American Way

16,471

1987

84.2%

Tax Tyme Express, Salon VIP Tress, All About You Events

2,606

$4.00 - $11.04

$2.99

84.2%

Macy's, Sears, Foot Locker, Burlington Coat Factory, GNC

186,969

$10.00 - $40.00

$7.41

Southwest Center Mall 6 3662 W. Camp Wisdom Rd Dallas, Texas *represents single tenant building

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GLA

FAIRMEADOWS SHOPPING CENTER

1,185,022 1975 / 2002

RENT COMPARABLES

Fairmeadows Shopping Center 1

Westgate Plaza

2

Liberty Square

3

Oriole Square

4

Redbird Village

5

American Way Plaza

6

Southwest Center Mall

2

3

4

5

1 6

Copyrighted report licensed to Pierson Retail Advisors - 322944.

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FAIRMEADOWS SHOPPING CENTER

DEMOGRAPHICS Radius

1 Mile

3 Mile

5 Mile

17,572 16,477 15,614 6.65% 5.53% 7,890

90,769 84,581 77,770 7.32% 8.76% 25,612

236,295 222,632 210,293 6.62% 5.39% 82,788

11,166 4559 238 277 19 218 0

40,279 40,469 775 1,713 84 1,262 13

109,108 102,968 2,118 4,058 189 3,191 163

5,928 5,566 5,320 6.50% 4.62% 2,980 2,586 $55,165 $43,835

32,739 30,566 28,417 7.11% 7.56% 14,640 15,926 $56,371 $43,009

79,450 74,568 71,075 6.55% 4.91% 41,727 32,841 $58,593 $44,214

1,217 1,970 1,215 609 316 123 19 98

7,570 9,848 5,892 3,053 2,133 1,019 598 453

18,754 22,673 13,406 8,389 5,540 2,508 2,058 1,242

Population: 2021 Projection 2016 Estimate 2010 Census Growth 2016-2021 Growth 2010-2016 2016 Population Hispanic Origin

2016 Population by Race: White Black Am. Indian & Alaskan Asian Hawaiian & Pacific Island Other U.S. Armed Forces

Households: 2021 Projection 2016 Estimate 2010 Census Growth 2016 - 2021 Growth 2010 - 2016 Owner Occupied Renter Occupied 2016 Avg Household Income 2016 Med Household Income

2016 Households by Household Inc: <$25,000 $25,000 - $50,000 $50,000 - $75,000 $75,000 - $100,000 $100,000 - $125,000 $125,000 - $150,000 $150,000 - $200,000 $200,000+

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FAIRMEADOWS SHOPPING CENTER

MARKET SUMMARY - DALLAS/FORT WORTH MARKET OVERVIEW Based on its performance (and their expected performance) in three primary areas: investment, development, and home building, Dallas-Fort Worth ranked #1 in Urban Land Institute’s top U.S. real estate markets to watch in 2016. The Dallas/Fort Worth Metroplex, a North Texas region, is comprised of 12 counties and over 150 municipalities, including Dallas and Fort Worth. The fourth largest metropolitan area in the United States, the DFW Metroplex encompasses approximately 9,286 square miles with a population of more than 6.9 million people.

Dallas-Fort Worth was one of the fastest growing metropolitan areas in the nation from 2000 to 2015, adding more than 1.8 million people for a 35% growth rate.

Currently the Metroplex adds a new person every 4 minutes and it is projected by the year 2040 as many as 10.5 million people will be living in DFW and employment will reach more than 6.6 million people. With the largest, most educated workforce in the state of Texas, totaling three million people, DFW leads the state in public university and community college students (442,000). The largest of the major universities within the area are the University of North Texas (37,175), the University of Texas at Arlington (34,870) and the University of Texas at Dallas (24,554).

In 2014, Brooking Institute ranked Dallas/Fort Worth #3 in the nation for the metropolitan area’s “Overall Economic Performance” due to its impressive job growth, low unemployment, high gross domestic product and healthy home prices through the recession and recovery. Furthermore, Dallas/Fort Worth accounts for one-third of the state’s Gross Domestic Product and approaches $60 billion in annual direct imports and exports. The Metroplex is currently the fifth-largest global exporter in the country and largest regional exporter to Canada, Mexico and China. The area has benefited from a sustained period of economic and population expansion over the past decade as local companies increase their business capacity and others relocate to this desirable, central U.S. location

JOB GROWTH: CONTINUES TO RISE Dallas/Fort Worth continues to outpace the nation in job growth over the short and long term due to its central location, pro-business environment and strong economy. Between 2005 and 2015 DFW added 621,278 new jobs for an impressive 22% growth rate, making DFW among the leading metros in the nation. Furthermore, Careerbuilder.com ranked Dallas/Fort Worth first among the nation’s ten largest MSA’s for job growth between 2014 and 2015 adding 112,829 jobs for a 3.4% growth

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FAIRMEADOWS SHOPPING CENTER

rate, well above the national rate of 2%. As of December 2015, the Dallas/Fort Worth had an unemployment rate of 4.0% below the national rate of 5.0%.

DALLAS/FORT WORTH: A DESIRABLE CORPORATE LOCATION Nationally recognized as one of the best markets for business, Dallas/Fort Worth leads the state in the number of firms who made their way into the region in 2014.

Since 2010, DFW has had 106 companies expand or relocate to the Metroplex, occupying nearly 12.5 million square feet. In 2014 alone, nearly 50 companies expanded or relocated to DFW. This number will continue to increase as the Dallas Regional Chamber announced plans to spend $2.5 million a year for the next five years on corporate recruiting. Over the last few years, the most notable announcements of companies moving to DFW include: Toyota North American headquarters, Amazon distribution center, Humana, Motorola, USAA, Omnitracs headquarters, Active Network, and Associa Inc. Dallas/Fort Worth has the fourthhighest number of corporate headquarters in the country hosting 21 Fortune 500 companies. Additionally, DFW is home to five Global 500 company headquarters, 40 Fortune 1000 headquarters and 11 of Forbes Top Private Companies.

ADVANTAGES IN TRANSPORTATION AND INFRASTRUCTURE Centrally located and easily accessible, Dallas/Fort Worth has an exceptional infrastructure of highways, interstates, railways, airports as well as public transportation systems. These infrastructures coupled with the DFW International Airport draw businesses and corporations affording them a competitive advantage nationally and internationally.

Dallas/Fort Worth International Airport is the third-busiest airport in overall operations and the ninth-busiest airport in the world in annual passenger counts hosting over 64.1 million travelers in 2015. The DFW International Airport has a $37 billion annual economic impact for the DFW region while supporting more than 228,000 jobs. Dallas is also home to Dallas Love Field, serving both commercial and corporate users transporting more than 8.5 million passengers annually. Serving as the corporate headquarters for Southwest Airlines, Dallas Love Field is a premier close-in airport as itâ&#x20AC;&#x2122;s located in the heart of Dallas just seven miles northwest of downtown central business district.

Dallas also has an extensive modern public transit service called Dallas Area Rapid Transit (DART) which covers 700 square miles in Dallas and 12 surrounding suburban communities, serving more than 111.8 million passengers annually. In conjunction with DART Rail, Trinity Railway Express (TRE) and bus services, DART moves more than 360,000 passengers each day across the Metroplex. In terms of infrastructure, DFW is served by six interstates, seven U.S. highways and numerous state highways.

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FAIRMEADOWS SHOPPING CENTER

FINANCIALS

FAIRMEADOWS SHOPPING CENTER

RENT ROLL Tenant

Suite

[2] Firestone Tire

210

GLA 5,790

%

Lease Dates Start End

5.09%

07/73

06/23

Annual

Minimum Rent Monthly

$75,264

$6,272

PSF $13.00

Recoveries Annual PSF $0

$0.00

Total Revenue $75,264

10.18%

Risen Christ Family

326

4,404

3.87%

12/96

01/18

$38,535

$3,211

$8.75

$7,219

$1.64

$45,754

6.19%

Advance Auto Parts

332

6,889

6.05%

07/15

01/31

$103,335

$8,611

$15.00

$4,145

$0.60

$107,480

14.54%

336A

1,152

1.01%

11/11

01/19

$13,985

$1,165

$12.14

$0

$0.00

$13,985

1.89%

[2] Looks of Beauty Popeyes La Familia Agency, 99 Cents Only Stores

338

1,700

1.49%

10/05

04/24

$28,900

$2,408

$17.00

$2,787

$1.64

$31,687

4.29%

408A

1,673

1.47%

06/14

06/17

$21,749

$1,812

$13.00

$2,742

$1.64

$24,491

3.31%

410

18,728

16.45%

12/13

01/26

$107,686

$8,974

$5.75

$29,165

$1.56

$136,851

18.51%

A-Max Insurance Service

414

664

0.58%

05/09

07/19

$21,012

$1,751

$31.64

$1,088

$1.64

$22,100

2.99%

Wellshire Financial

422

1,385

1.22%

12/09

07/20

$37,800

$3,150

$27.29

$2,270

$1.64

$40,070

5.42%

Illana's Salon & Spa Academy The Coaches Box [4] Korner Shop

663

5,062

4.45%

12/14

12/19

$40,496

$3,375

$8.00

$8,298

$1.64

$48,794

6.60%

703/705

1,513

1.33%

11/13

07/22

$16,643

$1,387

$11.00

$2,480

$1.64

$19,123

2.59%

727

2,400

2.11%

08/12

02/22

$30,000

$2,500

$12.50

$3,934

$1.64

$33,934

4.59%

Available

402

7,085

6.22%

-

-

Forever Diva Stylist

707

958

0.84%

08/16

08/18

Available

315

4,200

3.69%

-

-

$0

$0

$0.00

$0

$0.00

$0

0.00%

$10,059

$838

$10.50

$1,806

$1.89

$11,865

1.60%

$0

$0

$0.00

$0

$0.00

$0

0.00%

$34,730

$2,894

$11.50

$5,395

$1.79

$40,125

5.43%

$0

$0

$0.00

$0

$0.00

$0

0.00%

Mint Dentist

406

3,020

2.65%

11/16

10/26

Available

306

7,266

6.38%

-

-

Available

312

14,649

12.87%

-

-

$0

$0

$0.00

$0

$0.00

$0

0.00%

Available

315B

6,499

5.71%

-

-

$0

$0

$0.00

$0

$0.00

$0

0.00%

[3] Helping Hands

328

3,968

3.48%

03/17

02/22

$35,712

$2,976

$9.00

$7,089

$1.79

$42,801

5.79%

[3] Helping Hands

330

2,250

1.98%

03/17

02/22

$20,250

$1,688

$9.00

$4,020

$1.79

$24,270

3.28%

334

807

0.71%

10/16

10/19

$8,958

$746

$11.10

$1,442

$1.79

$10,399

1.41%

336B

750

0.66%

02/17

01/18

$9,000

$750

$12.00

$1,340

$1.79

$10,340

1.40%

Herbalife Tax & Accounting Consulting Available

408

2,049

1.80%

-

-

$0

$0

$0.00

$0

$0.00

$0

0.00%

Available

651

9,000

7.90%

-

-

$0

$0

$0.00

$0

$0.00

$0

0.00%

$739,335

100.00%

Total Count / GLA

24 113,861

100%

Occupied

17

63,113

55.4%

Available

7

50,748

44.6%

Total Avg Rent / GLA

10.36

63,113

100.0%

Totals

$654,114

$0

Notes: [1] Static analysis information obtained from 12.29-16 rent roll and 2015 income statement [2] Firestone & Looks of Beauty are gross leases [3]Analysis assumes Helping Hands (Lease pending final signature) is in and paying base rent + NNN's. Analysis does not factor in Pending Tenants abated rent.

[4] Korner Shop has rent abatements for January 2018 & February 2019 which are not factored into the analysis.

22

% of Rev

FAIRMEADOWS SHOPPING CENTER

Fairmeadows Shopping Center

ESTIMATED REIMBURSEMENT REVENUE Tenant

Suite

[1] Firestone Tire

Estimated Reimbursement Revenue GLA

%

CAM Management Fee Insurance Monthly PSF Monthly PSF Monthly PSF

Real Estate Taxes Monthly PSF

Total Recovery Monthly PSF

210

5,790

5.09%

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

326

4,404

3.87%

$242

$0.66

$0

$0.00

$37

$0.10

$323

$0.88

$602

$1.64

[2] Advance Auto Parts

332

6,889

6.05%

$345

$0.60

$0

$0.00

$0

$0.00

$0

$0.00

$345

$0.60

Looks of Beauty

336A

1,152

1.01%

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

338

1,700

1.49%

$93

$0.66

$0

$0.00

$14

$0.10

$125

$0.88

$232

$1.64

Risen Christ Family

Popeyes La Familia Agency,

408A

1,673

1.47%

$92

$0.66

$0

$0.00

$14

$0.10

$123

$0.88

$229

$1.64

[3] 99 Cents Only Stores

410

18,728

16.45%

$921

$0.59

$0

$0.00

$137

$0.09

$1,372

$0.88

$2,430

$1.56

414

664

0.58%

$36

$0.66

$0

$0.00

$6

$0.10

$49

$0.88

$91

$1.64

A-Max Insurance Service Wellshire Financial

422

1,385

1.22%

$76

$0.66

$0

$0.00

$12

$0.10

$101

$0.88

$189

$1.64

Illana's Salon & Spa Academy

663

5,062

4.45%

$278

$0.66

$0

$0.00

$43

$0.10

$371

$0.88

$691

$1.64

The Coaches Box

703/705

1,513

1.33%

$83

$0.66

$0

$0.00

$13

$0.10

$111

$0.88

$207

$1.64

Korner Shop

727

2,400

2.11%

$132

$0.66

$0

$0.00

$20

$0.10

$176

$0.88

$328

$1.64

Available

402

7,085

6.22%

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

Forever Diva Stylist

707

958

0.84%

$53

$0.66

$20

$0.25

$8

$0.10

$70

$0.88

$151

$1.89

Available

315

4,200

3.69%

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

Mint Dentist

406

3,020

2.65%

$144

$0.57

$62

$0.25

$22

$0.09

$221

$0.88

$450

$1.79

Available

306

7,266

6.38%

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

Available

312

14,649

12.87%

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

Available

315B

6,499

5.71%

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

Helping Hands

328

3,968

3.48%

$189

$0.57

$81

$0.25

$29

$0.09

$291

$0.88

$591

$1.79

Helping Hands

330

2,250

1.98%

$107

$0.57

$46

$0.25

$16

$0.09

$165

$0.88

$335

$1.79

334

807

0.71%

$39

$0.57

$17

$0.25

$6

$0.09

$59

$0.88

$120

$1.79

336B

750

0.66%

$36

$0.57

$15

$0.25

$5

$0.09

$55

$0.88

$112

$1.79

2,049

1.80%

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

9,000

7.90%

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

113,861

100%

$2,867

Herbalife Tax & Accounting Consulting Available

408

Available

651

Totals

$241

$382

$3,611

$7,102

Notes: Based on 2015 CAM reconciliations [1] Firestone Tire is currently a gross lease; per their recent renewal (7/1/2018), Firestone will have a Base Year Expense Stop: Year 2018, details to be provided in agreed upon Lease Amendment [2] Advance Auto Parts CAM is an estimate, as no CAM calculation is available for this tenant.

[3] 99 Cents Only expenses shall not exceed as follows: CAM $1.20; Insurance $0.15; and RE Taxes $1.15. Tenant also has 5% cap on operating expenses incl. CAM, Insurance & Taxes.

23

FAIRMEADOWS SHOPPING CENTER

TENANT NOTES Tenant

Suite

GLA

Base Rental Increases Date PSF

Firestone Tire

210

5,790

Risen Christ Family

326

4,404

Advance Auto Parts

332

6,889

02/26

$16.50

336A

1,152

02/18

$12.51

338

1,700

05/19

$18.10

Looks of Beauty

Popeyes

24

Tenant Notes

FAIRMEADOWS SHOPPING CENTER

Fairmeadows Shopping Center

Option Notes Renewal

Three 5-year options at $17.18, $18.90, and $20.79 /sf/yr

Notes Tenant: Bridgestone Retail Operations, LLC. Option extension commencing 7/1/2018 has been agreed to at $15.62 psf/yr. Current lease is gross lease - option beginning 7/1/2018 will be base year expense stop

Tenant: Risen Christ Family

Three, 5-year renewal options at $18.15, $19.97 and $21.96 /sf/yr

Tenant: Straus-Frank Enterprises, LLC. Tenant's renewal options shall be deemed exercised automatically unless Tenant gives LL notice at least 180 days before expiration of the current term.

Tenant: James Hunter

One, 5-year option at FMV

Tenant: Rahum, Inc. Tenant will not open another location within 2 miles of the Premise

TENANT NOTES Tenant La Familia Agency, Firestone Tire

Tenant Notes Suite 408A 210

99 Cents Only Stores Risen Christ Family

410 326

A-Max Insurance Service Advance Auto Parts

414 332

Wellshire Financial Looks of Beauty

422 336A

Illana's Salon & Spa Academy 663 Popeyes 338

25

FAIRMEADOWS SHOPPING CENTER

GLA 1,673 5,790

Base Rental Increases Option Notes Date PSF Renewal One 5-year option at FMV Three 5-year options at $17.18, $18.90, and $20.79 /sf/yr

18,728 02/21 4,404

$6.00

664 6,889

02/26

$16.50

1,385 1,152

02/18

$12.51

5,062 1,700

Fairmeadows Shopping Center Notes Tenant: Bridgestone Retail Operations, LLC. Option extension commencing 7/1/2018 has been agreed to at $15.62 psf/yr. Current lease is gross lease - option beginning 7/1/2018 will be base year expense stop

Three, 5-year renewal options at $6.25, $6.50 & $6.75 /sf/yr

Tenant: 99 Cents Only Stores Tenant: Risen Christ Family Tenant has one-time right to terminate Lease with 180-days notice, not sooner than the 6th anniversary of the delivery date (12/4/2013).

Expense Caps: CAM costs will not exceed $1.20 psf. Tax costs will not exceed $1.15 psf. Insurance costs will not exceed $0.15 psf.

Tenant has exclusive right to operate a general merchandise store.

Tenant restrictions include (but not limited to) movie theatre, bowling alley, banquet facility, bar or nightclub, veterinary hospital

One 5-year option at $34.81 /sf/yr Three, 5-year renewal options at $18.15, $19.97 and $21.96 /sf/yr

Tenant: A-Max Auto Insurance Tenant: Straus-Frank Enterprises, LLC. Guarantor: Endeavor General Agency, LLC Tenant's renewal options shall be deemed exercised automatically Tenant required to report sales monthly and annually. unless Tenant gives LL notice at least 180 days before expiration of the current term.

One 5-year option at $31.62/sf/yr

Tenant: Wellshire Financial Tenant: James Hunter

1/18 $8.50 One 5-year option at FMV 1/19 05/19 $9.00 $18.10 One, 5-year option at FMV

Tenant: Jaime Reyes Tenant to report sales Inc. upon LL request Tenant: Rahum, Tenant will not open another location within 2 miles of the Premise

Tenant Notes

TENANT NOTES Tenant The Coaches Box

Firestone Tire

Korner Shop

Risen Christ Family

Available

Advance Auto Parts

Forever Diva Stylist

Looks of Beauty

Available

Popeyes

26

Fairmeadows Shopping Center

Suite 703/705

210

727

326

402

332

707

336A

315

338

1,513

9/17 5,790 9/18 7/20

$11.50 $12.00 $12.50

2/18

$12.81 $13.13 $13.46 $13.80

2,400

4,404 3/19 3/20 3/21

Option Notes Renewal

Notes

Tenant: Reginald Heath Three 5-year options at $17.18, Tenant: Bridgestone Retail Operations, LLC. Tenant to report sales upon LL request

$18.90, and $20.79 /sf/yr

Option extension commencing 7/1/2018 has been agreed to at $15.62 psf/yr. Current lease is gross lease - option beginning 7/1/2018 will be base year expense stop

Tenant: Kiran Surya Chakra Tenant to report sales uponChrist LL request Tenant: Risen Family

7,085

6,889

02/26

$16.50

Three, 5-year renewal options at $18.15, $19.97 and $21.96 /sf/yr

958

Tenant: Straus-Frank Enterprises, LLC. Tenant's renewal options shall be deemed exercised automatically unless Tenant gives LL notice at least 180 days before expiration of the current term.

Tenant: Ashley Ingram Tenant to report sales upon LL request

1,152

02/18

$12.51

05/19

$18.10

Tenant: James Hunter

4,200

1,700

Mint Dentist

406

3,020

Available

306

7,266

FAIRMEADOWS SHOPPING CENTER

Base Rental Increases Date PSF

GLA

09/19 09/20 09/21 09/22 09/23 09/24 09/25

$12.00 $12.50 $13.00 $13.50 $14.00 $14.50 $15.00

One, 5-year option at FMV

Tenant: Rahum, Inc. Tenant will not open another location within 2 miles of the Premise

TENANT NOTES Tenant Available Tire Firestone

Available

Suite 312 210

Base Rental Increases Option Notes GLA Date PSF Renewal 14,649 5,790 Three 5-year options at $17.18, $18.90, and $20.79 /sf/yr

315B

6,499

326

4,404

328

3,968

332

6,889

Helping Hands

330

2,250

Looks of Beauty

336A

1,152

334

807

338

1,700

Risen Christ Family

Helping Hands

Advance Auto Parts

Herbalife

Popeyes

Tax & Accounting Consulting

Totals

27

Tenant Notes

336B

750

113,861

FAIRMEADOWS SHOPPING CENTER

Fairmeadows Shopping Center Notes Tenant: Bridgestone Retail Operations, LLC. Option extension commencing 7/1/2018 has been agreed to at $15.62 psf/yr. Current lease is gross lease - option beginning 7/1/2018 will be base year expense stop

Tenant: Risen Christ Family

02/26

$16.50

02/18

$12.51

Three, 5-year renewal options at $18.15, $19.97 and $21.96 /sf/yr

Tenant: Straus-Frank Enterprises, LLC. Tenant's renewal options shall be deemed exercised automatically unless Tenant gives LL notice at least 180 days before expiration of the current term.

Tenant: James Hunter

Tenant: Juanita Charles

05/19

$18.10

One, 5-year option at FMV

Tenant: Rahum, Inc. Tenant will not open another location within 2 miles of the Premise

INCOME & EXPENSE ANALYSIS In-place Pro-forma

% of EGR

PSF

INCOME Base Rent Percentage Rent Total Rental Revenue Expense Reimbursements CAM Recoveries Management Fee Recoveries Insurance Recoveries Real Estate Tax Recoveries Total Expense Reimbursements Effective Gross Revenue (EGR) OPERATING EXPENSES Common Area Maintenance Housekeeping Parking Lot Parking Lot Repairs Landscaping Electrical HVAC Parts and General Roof Repairs Payroll General Repairs Electricity Water & Sewer Waste Disposal Burglar Alarm Fire Protection Total Common Area Maintenance Management Fee Total Insurance Total Real Estate Taxes

$654,114 $0 $654,114

$5.74 $0.00 $5.74

88.5% 0.0% 88.5%

$34,402 $2,896 $4,589 $43,333 $85,221 $739,335

$0.30 $0.03 $0.04 $0.38 $0.75 $6.49

4.7% 0.4% 0.6% 5.9% 11.5% 100.0%

$15,843 $472 $391 $4,121 $6,642 $1,450 $199 $6,232 $6,853 $199 $12,847 $404 $7,735 $1,637 $215 $65,240 $28,056 $24,187 $100,117

$0.14 $0.00 $0.00 $0.04 $0.06 $0.01 $0.00 $0.05 $0.06 $0.00 $0.11 $0.00 $0.07 $0.01 $0.00 $0.57 $0.25 $0.21 $0.88

2.1% 0.1% 0.1% 0.6% 0.9% 0.2% 0.0% 0.8% 0.9% 0.0% 1.7% 0.1% 1.0% 0.2% 0.0% 8.8% 3.8% 3.3% 13.5%

Total Recoverable Expenses Total Non-Recoverable Expenses Total Operating Expenses Net Operating Income Capitalization Rate Cash-on-Cash Return Notes:

$217,600 $0 $217,600 $521,735 6.96% 8.32%

$1.91 $0.00 $1.91 $4.58

29.4% 0.0% 29.4% 70.6%

[1] Expense Source - 2015 Income Statement. (Analysis reflects 2015 RE Taxes, the 2015 income statement included the payment for both 2014 and 2015 taxes).

28

FAIRMEADOWS SHOPPING CENTER

EXPIRATION SCHEDULE Tenant

Suite

[2] Firestone Tire

210

GLA 5,790

%

Lease Dates Start End

5.09%

07/73

06/23

Annual

Minimum Rent Monthly

$75,264

$6,272

PSF $13.00

Recoveries Annual PSF $0

$0.00

Total Revenue $75,264

10.18%

Risen Christ Family

326

4,404

3.87%

12/96

01/18

$38,535

$3,211

$8.75

$7,219

$1.64

$45,754

6.19%

Advance Auto Parts

332

6,889

6.05%

07/15

01/31

$103,335

$8,611

$15.00

$4,145

$0.60

$107,480

14.54%

336A

1,152

1.01%

11/11

01/19

$13,985

$1,165

$12.14

$0

$0.00

$13,985

1.89%

[2] Looks of Beauty Popeyes La Familia Agency, 99 Cents Only Stores

338

1,700

1.49%

10/05

04/24

$28,900

$2,408

$17.00

$2,787

$1.64

$31,687

4.29%

408A

1,673

1.47%

06/14

06/17

$21,749

$1,812

$13.00

$2,742

$1.64

$24,491

3.31%

410

18,728

16.45%

12/13

01/26

$107,686

$8,974

$5.75

$29,165

$1.56

$136,851

18.51%

A-Max Insurance Service

414

664

0.58%

05/09

07/19

$21,012

$1,751

$31.64

$1,088

$1.64

$22,100

2.99%

Wellshire Financial

422

1,385

1.22%

12/09

07/20

$37,800

$3,150

$27.29

$2,270

$1.64

$40,070

5.42%

Illana's Salon & Spa Academy The Coaches Box [4] Korner Shop

663

5,062

4.45%

12/14

12/19

$40,496

$3,375

$8.00

$8,298

$1.64

$48,794

6.60%

703/705

1,513

1.33%

11/13

07/22

$16,643

$1,387

$11.00

$2,480

$1.64

$19,123

2.59%

727

2,400

2.11%

08/12

02/22

$30,000

$2,500

$12.50

$3,934

$1.64

$33,934

4.59%

Available

402

7,085

6.22%

-

-

Forever Diva Stylist

707

958

0.84%

08/16

08/18

Available

315

4,200

3.69%

-

-

$0

$0

$0.00

$0

$0.00

$0

0.00%

$10,059

$838

$10.50

$1,806

$1.89

$11,865

1.60%

$0

$0

$0.00

$0

$0.00

$0

0.00%

$34,730

$2,894

$11.50

$5,395

$1.79

$40,125

5.43%

$0

$0

$0.00

$0

$0.00

$0

0.00%

Mint Dentist

406

3,020

2.65%

11/16

10/26

Available

306

7,266

6.38%

-

-

Available

312

14,649

12.87%

-

-

$0

$0

$0.00

$0

$0.00

$0

0.00%

Available

315B

6,499

5.71%

-

-

$0

$0

$0.00

$0

$0.00

$0

0.00%

[3] Helping Hands

328

3,968

3.48%

03/17

02/22

$35,712

$2,976

$9.00

$7,089

$1.79

$42,801

5.79%

[3] Helping Hands

330

2,250

1.98%

03/17

02/22

$20,250

$1,688

$9.00

$4,020

$1.79

$24,270

3.28%

334

807

0.71%

10/16

10/19

$8,958

$746

$11.10

$1,442

$1.79

$10,399

1.41%

336B

750

0.66%

02/17

01/18

$9,000

$750

$12.00

$1,340

$1.79

$10,340

1.40%

Herbalife Tax & Accounting Consulting Available

408

2,049

1.80%

-

-

$0

$0

$0.00

$0

$0.00

$0

0.00%

Available

651

9,000

7.90%

-

-

$0

$0

$0.00

$0

$0.00

$0

0.00%

$739,335

100.00%

Total Count / GLA

24 113,861

100%

Occupied

17

63,113

55.4%

Available

7

50,748

44.6%

Total Avg Rent / GLA

10.36

63,113

100.0%

Totals

$654,114

$0

Notes: [1] Static analysis information obtained from 12.29-16 rent roll and 2015 income statement [2] Firestone & Looks of Beauty are gross leases [3]Analysis assumes Helping Hands (Lease pending final signature) is in and paying base rent + NNN's. Analysis does not factor in Pending Tenants abated rent.

[4] Korner Shop has rent abatements for January 2018 & February 2019 which are not factored into the analysis.

29

% of Rev

FAIRMEADOWS SHOPPING CENTER

For more information, please contact: : : Jennifer Pierson

: : Beth Pierson

President and CEO

Vice President Operations

: : Debora Haught Client Services Director

: : Will Meachum Business Development

214-354-6820 C

214-855-2951 O

214-855-2959 O

214-540-0524 O

jp@PiersonRetailAdvisors.com

214-208-4545 C

Debora@PiersonRetailAdvisors.com

Will@PiersonRetailAdvisors.com

Beth@PiersonRetailAdvisors.com

: : Ron Sweedyk

: : Nicole Maser

Financial Analyst 214-855-2954 O Ron@PiersonRetailAdvisors.com

Senior Analyst

: : Reena Rana

Graphic Designer

: : Kasey Haught Comps Analyst

214-855-2954 O

214-855-2954 O

214-855-2954 O

Nicole@PiersonRetailAdvisors.com

Reena@PiersonRetailAdvisors.com

Kasey@PiersonRetailAdvisors.com

Retail Investment Sales This is a confidential Offering Memorandum has been prepared by Pierson Retail Advisors, Inc. and is intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.

This Offering Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the “Owner”), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and Pierson Retail Advisors, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Offering Memorandum, certain documents, including leases and other materials, are described in summary form.

These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Offering Memorandum in any manner.

Neither the Owner or Pierson Retail Advisors, Inc, nor any representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.

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The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/ or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.

By receipt of this Offering Memorandum, you agree that this Offering Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Offering Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or Pierson Retail Advisors, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or Pierson Retail Advisors, Inc. If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to Pierson Retail Advisors, Inc. © 2017 Pierson Retail Advisors, Inc. The information contained in this document has been obtained from sources believed reliable. While Pierson Retail Advisors, Inc. does not doubt its accuracy, Pierson Retail Advisors, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. 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.