Amigo Plaza PP - LoopNet...AMIGO PLAZA OFFERING MEMORANDUM 5530 BUFORD HIGHWAY, NORCROSS, GA 30071 McDonald’s. NON-ENDORSEMENT AND DISCLAIMER NOTICE Confidentiality and Disclaimer

5530 BUFORD HWY., NORCROSS, GA

B U F O R D H W Y. 4 4 , 2 8 2 V P D

AMIGO PLAZA

OFFERING MEMORANDUM

5530 BUFORD HIGHWAY, NORCROSS, GA 30071

McDonald’s

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 and

should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified

information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due

diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the

future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or

asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any

tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable;

however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters

and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of

the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

Non-Endorsement 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 or name

is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or

commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

AMIGO PLAZA

Norcross, GA

ACT ID Z0230670

2

TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01Offering Summary

Location Overview

Regional Map

Local Map

Aerial Photo

FINANCIAL ANALYSIS 02Tenant Summary

Lease Expiration Chart

Operating Statement

Notes

Pricing Detail

Acquisition Financing

MARKET COMPARABLES 03Sales Comparables

Comparable Shopping Centers

MARKET OVERVIEW 04Market Analysis

Demographic Analysis

AMIGO PLAZA

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AMIGO PLAZA

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INVESTMENT

OVERVIEW

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LOCATION OVERVIEW

CLOSE PROXIMITY TO:

5530 Buford Hwy, Norcross, GA 30071

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAMEAMIGO PLAZA

PRICING AND VALUATION MATRIX


LOCATION OVERVIEW

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AMIGO PLAZA

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OFFERING SUMMARY

PROPERTY OVERVIEW

21,600 square foot retail center on 2.58 acres of land.Located on Buford Highway - a major retail/commercial corridor.High visibility and excellent ingress/egress to the shopping center.

Average rent rates are $12-$18/sf.Location is minutes away from Midtown and Buckhead.Potential redevelopment into mixed-use property- Overlay district in the city of Norcross

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EXECUTIVE SUMMARYOFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES

Fleetcor Tchnlgies Oprting LLC 3,518

Westrock Shared Services LLC 2,600

Azz Wsi 2,090

SOS Security LLC 1,923

Southern Union Conference 1,921

After Hours Formalwear Inc 1,700

Rocktenn Southern Container Co 1,700

Capstone Logistics 1,654

Applebees Nghborhood Grill Bar 1,455

Nextel 1,444

Revenuemed Inc 1,400

Macys Systems and Tech Inc 1,300

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2017 Estimate Pop 11,119 84,576 259,249

2010 Census Pop 9,715 74,083 231,646

2017 Estimate HH 3,534 28,651 89,314

2010 Census HH 3,148 25,480 80,919

Median HH Income $51,699 $48,138 $48,364

Per Capita Income $22,724 $23,286 $25,883

Average HH Income $71,494 $68,735 $75,102

VITAL DATAYEAR 1 YEAR 2

Price $2,600,000 CAP Rate 4.64% 8.26%

Down Payment 30% / $780,000 Net Operating Income $120,724 $214,747

Loan Amount $1,820,000 Net Cash Flow After Debt Service 15.48% / $120,724 10.75% / $83,871

Loan Type Proposed New Total Return 15.48% / $120,724 15.64% / $122,006

Interest Rate / Amortization 5.25% / 25 Years

Gross Leasable Area (GLA) 21,600 SF

Price/SF $120.37

Current Occupancy 77.78%

Year Built / Renovated 1999

Lot Size 2.58 acre(s)

5

MAJOR TENANTSTENANT GLA LEASE EXPIRATION LEASE TYPE

EXECUTIVE SUMMARY


BUFORD HWY.

BEAVER

RU

IN R

D.

EXECUTIVE SUMMARY


BUFORD HWY.

BEAVER

RU

IN R

D.

Price Undisclosed Net Operating Income

Loan Type Proposed New

Interest Rate / Amortization 5.25% / 25 Years


Current Occupancy 77.78%



Net Operating Income $214,747

PROFORMA

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LOCATION OVERVIEW

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LOCATION OVERVIEW

10

INVESTMENT OVERVIEW

21,600 square foot retail center on 2.58 acres of land.Located off Buford Highway - a major retail/commercial corridor.High visibility and excellent ingress/egress to the shopping center.Average rent rates are $12-$18/sf.Location is minutes away from Midtown and Buckhead.Potential redevelopment into mixed-use property- Overlay district in the city of Norcross.The property is labeled as a Tier 1 redevelopment property on the Norcross Overlay District Map.

■ Great Conversion Potential into Mixed-Use Development Overlay district of Norcross

■ Average Daily Traffic Count: 44,282 Vehicles per Day

■ Close Proximity to I-85 & Peachtree Industrial Boulevard

■ Excellent visibility

■ Surrounded by National Franchises

INVESTMENT HIGHLIGHTS

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LOCATION OVERVIEW

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LOCATION OVERVIEW

10

PROPERTY OVERVIEW

■ 21,600 square foot retail center on 2.58 acres of land.

■ Located on Buford Highway - a major retail/commercial corridor.

■ High visibility and excellent ingress/egress to the shopping center.

■ Average rent rates are $12-$18/sf.

■ Location is minutes away from Midtown and Buckhead.

■ Potential redevelopment into mixed-use property- Overlay district in the city of Norcross

BUFORD HWY.

BEAVER

RU

IN R

D.


McDonald’s

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LOCATION OVERVIEW

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LOCATION OVERVIEW

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AMIGO PLAZA

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OFFERING SUMMARY

EW



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AMIGO PLAZA

OFFERING SUMMARY

PROPOSED FINANCINGFirst Trust DeedLoan Amount $1,820,000Loan Type Proposed NewInterest Rate 5.25%Amortization 25 YearsLoan Term 10 YearsLoan to Value 70%Debt Coverage Ratio

THE OFFERINGProperty Amigo PlazaPrice $2,600,000Property Address 5530 Buford Hwy, Norcross, GAAssessors Parcel Number R6242 058Zoning C4

SITE DESCRIPTIONNumber of Stories 1Year Built/Renovated 1999Gross Leasable Area 21,600 SFOwnership Fee SimpleLot Size 2.58 acre(s)

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Y

ATLANTA AUTO MAX

GOOD NUTRITION

CALIBER COLLISION

NORCROSS PHARMACY

McDonald’s

DENTAL CARE


PROPRPROPERPROPERPERO TPERY TSUY OMTY SUMMATY SUMMARMVERARVIYRY

ATLANTA AUTO MAX

GOOD NUTRITION

CALIBER COLLISION

NORCROSS PHARMACY

McDonald’s

DENTAL CARE


NORCROSSELEMENTARY

Undisclosed

PROPERTY SUMMARY

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LOCATION OVERVIEW

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LOCATION OVERVIEW

10

AREA OVERVIEW

Lillian Webb Gateway Development projectLillian Webb Gateway Development project- mixed use projects of 194 residential units and 9-live and work units with street level retails along the Buford Hwy & downtown Norcross. This includes general housing, structured parking, and the expansion of the Norcross library. The project will invest $ 40 million and redevelopment along the Buford Highway. It will start construction in the fourth quarter of this year and aims to start selling in 2020.Pinnacle Park projectPinnacle Park project- This $2 million recreational development will be funded by SPLOST and encompasses 12 acres with adjacent green space and connection to the Greenway.Amenities include a lake, playground, fitness circuit course, octagonal grand pavilion, two picnic pavilions, grilling facilities, bathrooms and nature-inspired landscaped areas.There is also a mixed-use project called ‘Broadstone Norcross’. As an 11-acre West Rock campus redevelopment project, a total of $ 65 million has been invested to secure 357 residential units (including 65 units in town homes), 650 parking spaces, and office space between 20,000 and 50,000 square meters.

Lillian Webb Gateway Development

Buford Hwy.

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OFFERING SUMMARY

PROPERTY OVERVIEW



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85

23

Overlay Boundary

TIER 1

TIER 2

TIER 3

1,200 0 1,200600 Feet

0.25 0 0.250.125 MilesPARCEL

RIGHT OF WAY

RAILROAD RIGHT OF WAY

CITY LIMIT

LAND LOT

RAILROAD

LEGENDREDEVELOPMENT AREA OVERLAY DISTRICT MAP

CITY OF NORCROSSGWINNETT COUNTY | GEORGIA

6TH LAND DISTRICT

4.5 +/- SQUARE MILES

ADOPTED JULY 7, 2008

AREA DEVELOPMENTS

PINNACLE PARK SITE PLAN

REDEVELOPMENT AREA OVERLAYDISTRICT MAPCITY OF NORCROSS

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LOCATION OVERVIEW

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LOCATION OVERVIEW

10

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LOCATION OVERVIEW

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LOCATION OVERVIEW

10

Marcus & Millichap closes more transactions than any

other brokerage firm.

UntitledMapWriteadescriptionforyourmap.

Legend

5530BufordHwy

700ft

N

➤➤

N


BUFORD HWY. 44,282 VPD

AMIGO PLAZA

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FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS

AMIGO PLAZA

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TENANT SUMMARY

FINANCIAL ANALYSIS

AMIGO PLAZA

OPERATING STATEMENT

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LOCATION OVERVIEW

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LOCATION OVERVIEW

10

Number of Suites 13

Price Per Sq Ft $120.37


Lot Size 2.58 Acres



Summary

UntitledMapWriteadescriptionforyourmap.

Legend

5530BufordHwy

700ft

N

➤➤

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5530 BUFORD HWY.

PRICING DETAIL

MARCUS & MILLICHAP CAPITAL CORPORATION CAPABILITIESMMCC—our fully integrated, dedicated financing arm—is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and terms.

We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide our clients with the greatest range of financing options.

Our dedicated, knowledgeable experts understand the challenges of financingand work tirelessly to resolve all potential issues to the benefit of our clients.

National platform operating

within the firm’s brokerage offices

$5.63 billion total national

volume in 2017

Access to more capital sources than any other

firm in the industry

Optimum financing solutions to enhance value

Our ability to enhance buyer pool by expanding finance options

Our ability to enhance seller control

• Through buyer qualification support

• Our ability to manage buyers finance expectations

• Ability to monitor and manage buyer/lender progress, insuring timely, predictable closings

• By relying on a world class set of debt/equity sources and presenting a tightly underwritten credit file

WHY MMCC?

Closed 1,707 debt and equity

financings in 2017

ACQUISITION FINANCING

AMIGO PLAZA

18

AMIGO PLAZA

19

MARKET

COMPARABLES

8

AMIGO PLAZA

COMPARABLE SHOPPING CENTERS

AMIGO PLAZA(SUBJECT)

Peachtree Parkway Village

Norcross Triangle

Peachtree Medlock Walk

The Shops at Peachtree Parkway4870 Peachtree Industrial Blvd

Commerce Plaza

4

7

8

9

11

20

12

14

15

16

17

13

18

10

4

1

2

3

5

6

20



21

AVERAGE OCCUPANCY

Avg. 81.83%

0

10

20

30

40

50

60

70

80

90

100

Amigo Plaza PeachtreeParkwayVillage

NorcrossTriangle

PeachtreeMedlock

Walk

TheShops at

PeachtreeParkway

4870PeachtreeIndustrial

Blvd

CommercePlaza



22

AVERAGE RENT PER SQUARE FOOT

Avg. $18

$0

$3

$5

$8

$10

$13

$15

$18

$20

$23

$25

Amigo Plaza PeachtreeParkwayVillage

NorcrossTriangle

PeachtreeMedlock

Walk

TheShops at

PeachtreeParkway

4870PeachtreeIndustrial

Blvd

CommercePlaza

PROPERTY NAME

MARKETING TEAM

AMIGO PLAZA


rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


23

Total GLA Available SF Asking Rent/SF

21,600 SF 4,800 SF $7.15

YEAR BUILT: 1999

AMIGO PLAZA5530 Buford Hwy, Norcross, GA, 30071

OCCUPANCY: 80% | YEAR BUILT: 2005


20,982 SF 0 SF $24.00

1

PEACHTREE PARKWAY VILLAGE5275-5277 Peachtree Pky, Norcross, GA,



27,523 SF 0 SF $18.00

2

NORCROSS TRIANGLE5955 Jimmy Carter Blvd, Norcross, GA, 30071

PROPERTY NAME

MARKETING TEAM

AMIGO PLAZA


rentpropertyname1


rentpropertyname1


rentpropertyname1


24



19,200 SF 0 SF $12.00

3

PEACHTREE MEDLOCK WALK5260 Peachtree Industrial Blvd, Norcross, GA, 30071



25,299 SF 0 SF $21.96

4

THE SHOPS AT PEACHTREE PARKWAY5975 Peachtree Pkwy, Norcross, GA, 30092



15,700 SF 0 SF $18.00

5

4870 PEACHTREE INDUSTRIAL BLVD4870 Peachtree Industrial Blvd, Berkeley Lake, GA, 30071

PROPERTY NAME

MARKETING TEAM

AMIGO PLAZA


rentpropertyname1


rentpropertyname1


rentpropertyname1


25



20,000 SF 0 SF $15.00

6

COMMERCE PLAZA5865 Jimmy Carter Blvd, Norcross, GA, 30071

AMIGO PLAZA

26

MARKET

OVERVIEW

MARKET OVERVIEW

ATLANTAOVERVIEW

1

The Atlanta metro encompasses 29 counties in northwestern Georgia.With few natural barriers to limit development, tremendous populationgrowth over the past decade expanded the metro’s borders and theregion now has a population of roughly 5.8 million people. Over the nextfive years the region is expected to add approximately 512,000residents. Meanwhile, Mercedes-Benz Stadium has been a catalyst forredevelopment in the urban core of Atlanta. New projects in thedowntown and midtown sections of the city present a vast array ofhousing, entertainment and retail opportunities that are enticingresidents back into the city and providing options for people moving tothe metro.

MARKET OVERVIEW

METRO HIGHLIGHTS

HEAVY CONCENTRATION OF CORPORATE HEADQUARTERSAtlanta ranks fifth in the nation in the number of Fortune 500 headquarters with 15 companies, including UPS, Delta Airlines and Coca-Cola.

STRONG EMPLOYMENT GAINSThe metro places among the highest in the nation for job growth. Nearly 400,000 jobs were added in the last four years.

LOW COST OF LIVING AND DOING BUSINESS ATTRACTS EMPLOYERSA pro-business environment and affordability helped Atlanta lure new companies to the metro.

AMIGO PLAZA

MARKET OVERVIEW

ECONOMY§ Gross metropolitan product (GMP) and retail sales progress above national levels.

§ The area serves as a financial hub for the Southeast. The Federal Reserve Bank of Atlanta and SunTrust Bank are housed locally.

§ Many companies favor Atlanta for low corporate taxes, its pro-business climate and access to national and global markets. Among the numerous corporate headquarters are Home Depot, Aflac and Turner Broadcast Co. Other major firms include NCR, Mercedes-Benz, Porsche and State Farm.

SHARE OF 2017 TOTAL EMPLOYMENT

MAJOR AREA EMPLOYERS

Delta Airlines

The Home Depot

AT&T

WellStar Health Systems

UPS

Northside Hospital

Piedmont Healthcare

Children’s Healthcare of Atlanta

Cox Enterprises

Bank of America* Forecast

2

MANUFACTURING6%

OTHER SERVICES

4%22%

AND UTILITIES

TRADE, TRANSPORTATION

4%INFORMATION

PROFESSIONAL AND

BUSINESS SERVICES

19%

CONSTRUCTION4%

GOVERNMENT12%

LEISURE AND HOSPITALITY11%

FINANCIAL ACTIVITIES6%

HEALTH SERVICES

EDUCATION AND

+ 13%

AMIGO PLAZA

MARKET OVERVIEW

DEMOGRAPHICS

SPORTS

EDUCATION

ARTS & ENTERTAINMENT

§ The local population is projected to exceed 6.3 million people during the next five years, after adding roughly 512,000 residents.

§ Nearly 231,000 households will be created by the end of 2022, generating the need for additional housing options.

§ A skilled workforce includes nearly 36 percent of residents age 25 and older with a bachelor’s degree, which places the metro above the national level.

The Atlanta metro features a surging business environment and modern infrastructure whileproviding entertainment and attractions. Affordable housing in the outer perimeters lowersthe average cost of living. The metro has several acclaimed cultural institutions, includingZoo Atlanta and the High Museum of Art. More than 30 institutions of higher learning callAtlanta home, including Emory University, Georgia Institute of Technology and SpelmanCollege. Outdoor and sports enthusiasts will find plenty to enjoy. Mild weather year-roundbeckons residents to hike, paddle and bike on the many trails in and around Atlanta. Atlantais home to professional sports franchises in the NFL, MLB, NBA and WNBA.

* ForecastSources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau

QUALITY OF LIFE

3

2017 Population by Age

0-4 YEARS

7%5-19 YEARS

21%20-24 YEARS

7%25-44 YEARS

28%45-64 YEARS

26%65+ YEARS

11%

AMIGO PLAZA

36.12017

MEDIAN AGE:

U.S. Median:

37.8

$59,400 2017 MEDIAN

HOUSEHOLD INCOME:

U.S. Median:

$56,300

5.8M2017

POPULATION:

Growth2017-2022*:

8.8%

2.1M2017

HOUSEHOLDS:

10.9%

Growth2017-2022*:

30

Demand keeps vacancy low in Central Atlanta. A resurgence in Central Atlanta isbringing numerous projects to the area. Several apartments and hotels are poppingup, with convenience retailers following suit, many of which are not undermined by e-commerce. The area will receive the largest delivery of retail space this year amongsubmarkets. Most of the projects are located along Memorial Drive in Cabbagetown,including additions to the mixed-used development named Larkin. The project isanchored by Grant Park Market and Ace Hardware, with several smaller restaurantsand shopping establishments opening this year. Despite the influx of completions,most are fully leased. Overall, steady demand within Central Atlanta has slashedvacancy in the area 300 basis points during the past three years.

Residential growth in Atlanta fuels need for necessity retailers. Strong net migrationand household formation metrowide are driving retail sales above the national averagein Atlanta. To meet the needs of the growing population and more households, severalnecessity retailers are under construction, including Whole Foods and Kroger. Ahealthy retail sales base has underpinned strong net absorption, which will drivevacancy to a seven-year low at year’s end and support rent growth.

• Georgia’s pro-business environment and continued job growth keeps localand out-of-state buyers active in the Atlanta retail market. California investorsand those from along the East Coast are particularly active, primarily targetingassets near major thoroughfares in Gwinnett and Cobb counties.

• Investors in the $1 million to $10 million price tranche are dominatingtransaction velocity in Atlanta. Many buyers are attracted to convenienceretailers, like dollar stores, in areas with strong household growth. Investorsare also increasingly scrutinizing lease-terms for single-tenant assets.

• Cap rates for single-tenant properties have held steady, averaging in the high-6 percent band the past three consecutive years. Little movement in cap ratesis pushing some risk-averse buyers to multi-tenant properties. Class B centersare highly sought after with many buyers targeting assets in Central Atlantaand Cobb County.

Retail 2018 OutlookCentral Atlanta RedevelopmentSparks Retail Demand

ATLANTA METRO AREA

1.4 million sq. ft. will be

completed

5.5% increase in

asking rents

50 basis point

decrease vacancy

Construction:

The average asking rent climbs to $15.55 persquare foot after a 4.8 percent increase in2017.

Pre-leasing and tenant demand lowersvacancy to 5.3 percent in 2018. The previousannual period, a 70-basis-point decrease wasrecorded.

* Cap rates trailing 12 months through 1Q18; 10-Year Treasury up to March 29, 2018Sources: CoStar Group, Inc.; Real Capital Analytics

Construction declines considerably from the2.3 million square feet completed in 2017.The largest project is a 124,000-square-footKroger.

Vacancy:

Rents:

InvestmentTrends

AMIGO PLAZA

31

• Approximately 45,100 positions were created in Atlanta during the past 12 months, cutting unemployment 60 basis points to 4.2 percent in March.

• The trade, transportation and utilities sector added 17,500 positions during the previous four quarters, the most among sectors. Education and health services followed with 15,600 positions.

EMPLOYMENT

• Deliveries picked up from the 1.9 million square feet of retail space delivered the prior year as more than 2.7 million square feet were completed during the past 12 months ending in March.

• The Georgia 400 and Dekalb submarkets each received over 400,000 square feet of space.

CONSTRUCTION

• More than 4.0 million square feet of retail space was absorbed in the past four quarters, reducing vacancy to 5.7 percent. The prior year, vacancy fell 70 basis points.

• Minimal completions in Central Atlanta and healthy demand slashed vacancy 60 basis points to 4.1 percent. The rate is one of the lowest metrowide.

VACANCY

• Tightening vacancy is benefiting rent growth, with the average asking rent reaching $15.21 per square foot. The previous 12-month period, rent jumped 5.3 percent.

• Declining vacancy in multi-tenant buildings also brought improvement to rent. The average asking rent in these spaces rose 4.3 percent to $14.94 per square foot during the year ending in March.

RENTS

ATLANTA METRO AREA

increase in the average asking rent Y-O-Y

7.8%basis point decrease in vacancy Y-O-Y50square feet

completed Y-O-Y

2.7 millionincrease in totalemployment Y-O-Y1.7%

* Forecast

1Q18 - 12-Month Trend

AMIGO PLAZA

32

Competition Heightens for Retail Properties; Single-Tenant Prices Climb Higher

Outlook: Higher first-year returns in themid-8 percent band and improvingvacancy will likely sustain demand for multi-tenant assets this year.

VacancyRate

Y-O-YBasisPoint

ChangeSubmarket

AskingRent

Y-O-Y %Change

Buckhead 3.8% -60 $29.68 -1.7%

Central Atl 4.1% -60 $24.35 -5.8%

Coweta County 4.1% 130 $15.59 10.6%

South Cobb 4.8% -60 $15.63 4.3%

North Cobb 5.3% -80 $14.11 15.8%

West Metropolitan 5.3% -50 $11.11 9.5%

Central Perimeter 5.4% 0 $28.14 53.4%

Georgia 400 5.7% -60 $16.26 1.7%

NE Atlanta Outlying 5.8% -10 $14.80 31.2%

Gwinnett 6.0% -100 $13.71 12.9%

South Metropolitan 6.0% -20 $13.11 1.3%

Overall Metro 5.7% -50 $15.21 7.8%

Submarket Trends

Lowest Vacancy Rates 1Q18

Sales Trends

ATLANTA METRO AREA

• Multi-Tenant: The number of multi-tenant transactions has picked up considerablyduring the past 12 months, with buyers targeting high-density areas with householdgrowth.

• Single-Tenant: Transactions for single-tenant assets also rose in the past fourquarters, up roughly 10 percent year over year. Healthy demand lifted the average priceup roughly 7 percent to $392 per square foot.

* Trailing 12 months through 1Q18 over previous time periodPricing trend sources: CoStar Group, Inc.; Real Capital Analytics

* Forecast **2017-2022

AMIGO PLAZA

33

• Fed raises benchmark interest rate, plans additional increases. The Federal Reserve

increased the federal funds rate by 25 basis points in late March, raising the overnight lending

rate to 1.5 percent. While the Fed noted the inflation outlook moderated recently, an upgraded

economic forecast including tax cuts and a regulation rollback strengthened growth

projections through 2020. As a result, the Fed has guided toward at least two more rate hikes

this year, while setting the stage for up to four increases in 2019.

• Lending costs rise alongside Fed rate increase. As the Federal Reserve lifts interest rates,

lenders will face a rising cost of capital, which may lead to higher lending rates for investors.

However, greater competition for loan demand has prompted some lenders to absorb some

cost increases. While higher borrowing costs may prompt buyers to seek higher cap rates, the

positive economic outlook should boost rent growth above inflation over the coming year.

• The capital markets environment remains highly competitive. While the Federal Reserve

has committed to tightening policy, other major central banks have maintained easing policies.

The downward pressure on rates from foreign central banks is counteracting greater

economic growth and wider government deficits, keeping demand for fixed-income

investments stable. Loan pricing resides in the mid-4 percent range with maximum leverage of

70 percent. Portfolio lenders will require loan-to-value ratios closer to 65 percent with interest

rates, depending on term, in the high-3 to mid-4 percent range. The passage of tax reform and

rising fiscal stimulus will keep the U.S. economy growing strongly this year, while limited new

construction and steady absorption will contain office vacancy near 14 percent.

* Through May 1st

Sources: CoStar Group, Inc.; Real Capital Analytics

ATLANTA METRO AREA

Capital Markets

AMIGO PLAZA

PROPERTY NAME

MARKETING TEAM

AMIGO PLAZA

DEMOGRAPHICS

Source: © 2017 Experian

Created on September 2018

POPULATION 1 Miles 3 Miles 5 Miles

§ 2022 Projection

Total Population 11,194 87,345 265,272

§ 2017 Estimate


§ 2010 Census


§ 2000 Census


§ Current Daytime Population

2017 Estimate 24,274 134,266 296,277

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

§ 2022 Projection

Total Households 3,720 30,551 93,401

§ 2017 Estimate


Average (Mean) Household Size 3.03 2.88 2.82

§ 2010 Census


§ 2000 Census


§ Occupied Units

2022 Projection 3,720 30,551 93,401

2017 Estimate 3,683 30,090 93,842

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

§ 2017 Estimate

$150,000 or More 8.68% 7.58% 9.37%

$100,000 - $149,000 11.97% 10.95% 10.58%

$75,000 - $99,999 10.28% 10.30% 10.49%

$50,000 - $74,999 20.52% 19.71% 18.23%

$35,000 - $49,999 15.68% 15.93% 16.09%

Under $35,000 32.86% 35.56% 35.23%

Average Household Income $71,494 $68,735 $75,102

Median Household Income $51,699 $48,138 $48,364

Per Capita Income $22,724 $23,286 $25,883

HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 Miles

Total Average Household Retail

Expenditure$62,840 $59,970 $61,267

§ Consumer Expenditure Top 10

Categories

Housing $16,763 $16,290 $16,651

Transportation $10,274 $10,072 $10,265

Shelter $9,271 $9,089 $9,268

Personal Insurance and Pensions $6,475 $6,214 $6,484

Food $6,017 $5,795 $5,888

Health Care $4,128 $3,838 $4,024

Utilities $3,994 $3,889 $3,959

Entertainment $2,233 $2,132 $2,232

Apparel $2,178 $2,085 $2,085

Cash Contributions $1,786 $1,671 $1,763

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

§ Population By Age

2017 Estimate Total Population 11,119 84,576 259,249

Under 20 29.23% 29.66% 29.13%

20 to 34 Years 25.69% 26.01% 25.45%

35 to 39 Years 9.15% 8.99% 8.58%

40 to 49 Years 14.48% 14.19% 13.94%

50 to 64 Years 14.39% 14.78% 15.42%

Age 65+ 7.05% 6.37% 7.47%

Median Age 32.53 32.11 32.54

§ Population 25+ by Education Level

2017 Estimate Population Age 25+ 7,092 53,373 165,470

Elementary (0-8) 12.44% 11.37% 10.49%

Some High School (9-11) 9.93% 7.87% 7.54%

High School Graduate (12) 24.98% 24.60% 23.14%

Some College (13-15) 13.10% 15.54% 16.30%

Associate Degree Only 7.10% 8.93% 7.77%

Bachelors Degree Only 20.91% 19.82% 21.20%

Graduate Degree 8.48% 9.76% 11.18%

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Income

In 2017, the median household income for your selected geography is$51,699, compare this to the US average which is currently $56,286.The median household income for your area has changed by 12.34%since 2000. It is estimated that the median household income in yourarea will be $59,156 five years from now, which represents a changeof 14.42% from the current year.

The current year per capita income in your area is $22,724, comparethis to the US average, which is $30,982. The current year averagehousehold income in your area is $71,494, compare this to the USaverage which is $81,217.

Population

In 2017, the population in your selected geography is 11,119. Thepopulation has changed by 7.65% since 2000. It is estimated that thepopulation in your area will be 11,194.00 five years from now, whichrepresents a change of 0.67% from the current year. The currentpopulation is 51.28% male and 48.72% female. The median age of thepopulation in your area is 32.53, compare this to the US averagewhich is 37.83. The population density in your area is 3,538.79 peopleper square mile.

Households

There are currently 3,534 households in your selected geography. Thenumber of households has changed by 9.99% since 2000. It isestimated that the number of households in your area will be 3,720five years from now, which represents a change of 5.26% from thecurrent year. The average household size in your area is 3.03persons.

Employment

In 2017, there are 8,564 employees in your selected area, this is alsoknown as the daytime population. The 2000 Census revealed that45.15% of employees are employed in white-collar occupations in thisgeography, and 54.46% are employed in blue-collar occupations. In2017, unemployment in this area is 9.80%. In 2000, the average timetraveled to work was 33.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:37.95% White, 19.21% Black, 0.12% Native American and 14.44%Asian/Pacific Islander. Compare these to US averages which are:70.42% White, 12.85% Black, 0.19% Native American and 5.53%Asian/Pacific Islander. People of Hispanic origin are countedindependently of race.

People of Hispanic origin make up 44.47% of the current yearpopulation in your selected area. Compare this to the US average of17.88%.

PROPERTY NAME

MARKETING TEAM

AMIGO PLAZA

Housing

The median housing value in your area was $193,715 in 2017,compare this to the US average of $193,953. In 2000, there were1,759 owner occupied housing units in your area and there were 1,454renter occupied housing units in your area. The median rent at thetime was $719.

Source: © 2017 Experian

DEMOGRAPHICS

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AMIGO PLAZA

DEMOGRAPHICS

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National Retail Group

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