OFFERING MEMORANDUM · Shopping Center in Macon Opportunity Zone | Westside Plaza | 9.3% Cap Rate |...

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OFFERING MEMORANDUM WESTSIDE PLAZA SHOPPING CENTER IN MACON OPPORTUNITY ZONE | 9.3% CAP RATE

Transcript of OFFERING MEMORANDUM · Shopping Center in Macon Opportunity Zone | Westside Plaza | 9.3% Cap Rate |...

Page 1: OFFERING MEMORANDUM · Shopping Center in Macon Opportunity Zone | Westside Plaza | 9.3% Cap Rate | Page 6 of19 INCOME SUMMARY Rents $71,340 Water Reimbursement $2,100 Vacancy Cost

OFFERING MEMORANDUMWESTSIDE PLAZA

SHOPPING CENTER IN MACON OPPORTUNITY ZONE | 9.3% CAP RATE

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3EXECUTIVE SUMMARY

4PROPERTY INFORMATION

5SURVEY

6INCOME & EXPENSES

7RENT ROLL

8DEMAND GENERATORS

9AREA MAP

10OPPORTUNITY ZONE

11ABOUT THE AREA

12IN THE AREA

14AREA DEVELOPMENTS

16BROKER PROFILES

17CONFIDENTIALITY AGREEMENT

18DISCLAIMER

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T A B L E O F C O N T E N T S

Bull RBull Realtyealty, Inc., Inc.50 Glenlak50 Glenlake Pe Parkwarkwaayy, Suit, Suite 600e 600AAtlantlantta, GA 30328a, GA 30328BullRBullRealtyealty.c.comom

Joe MitJoe MitchellchellVV.P.P. The R. The Reettail Grail GroupoupJoe.MitJoe.Mitchell@[email protected] x185404-876-1640 x185

Exclusively listed by Bull Realty, Inc.

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P RP RO P E RO P E RT Y H I G H L I G H TT Y H I G H L I G H TSS• 9,000 SF retail center located in Macon, GA

• 100% occupancy

• Situated on a 2.89-acre site

• Ample surface parking with lot in great condition

• Located within a Qualified Opportunity Zone

• Traffic counts of 16,008 VPD on Pio Nono Avenue

• Conveniently located off of I-75 South

• Less than 3 miles from Mercer University

P RP RO P E RO P E RT Y OT Y OV E RV E RV I E WV I E WThis retail center is located on Pio Nono Avenue, in Bibb County, within theMacon MSA. The property sits on a 2.89-acre site and has 7 units with 100%occupancy from local tenants.

The site has easy access to I-75 South, and traffic counts of over 16,008 vehiclesper day on Pio Nono Avenue. Mercer University is less than 3 miles from the siteand is one of the strongest demand drivers in the surrounding area. As a result,the surrounding demographics are strong with a population of 45,337 within a3-mile radius of the center.

Macon is seeing many new developments and investments that are creatingupside in the market and new employment opportunities. The property is alsolocated within a Federal Opportunity Zone which provides tax credits andincentives for Landlords and Tenants (View page 10 for details).

Units | 7Price | $550,000

E X E C U T I V E S U M M A R Y

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BUILDINGBUILDING

Property Address: 3355 Pio Nono Avenue, Macon, GA 31206

County: Bibb

Center Name: Westside Plaza

Building Size: 9,000 SF

Year Built: 1986

Number of Units: 7

Signage: Pylon and Storefront

SITESITE

Site Size: 2.89 Acres

Zoning: C-4 (Commercial)

Parcel ID: O094-0070

Parking Spaces: 45 Surface Spaces

Opportunity Zone: Yes

FINANCIALFINANCIAL

Occupancy: 100%

NOI: $50,971

Cap Rate: 9.3%

Price/SF: $61.11

Sale Price: $550,000

AREAREAA

Traffic Count: 16,008 VPD on Pio Nono Avenue

Frontage: 335' on Pio Nono Avenue

Curb Cuts: 1

Neighboring Properties: Advance Auto PartsLinkwood Manor Apartments

Cross Streets: Newberg Avenue and Sherry Drive

P R O P E R T Y I N F O R M A T I O N

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S U R V E Y

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INCINCOME SUMMAROME SUMMARYY

Rents $71,340

Water Reimbursement $2,100

Vacancy Cost -

GROSS INCOME $73,440

EXPENSE SUMMAREXPENSE SUMMARYY

CAM $8,400

Property Taxes $3,063

Insurance $3,766

Management 5% $3,672

Vacancy Factory 5% $3,567

GROSS EXPENSES $22,468

NET OPERATING INCOME $50,971CAP RATE 9.3%

Any included income, expenses, cap rates, costs, return estimates, renovations, measurements, square footage, acreage, projections, interest rates, loan terms,property condition, possible uses, zoning and other information herein may have been provided by the seller, landlord or other outside sources and while deemed tobe reliable, may be estimated, projected, is subject to change, and/ or may be limited in scope, and therefore shall not be relied upon as accurate. Any suchinformation important to the purchaser, lessee or other parties should be independently confirmed within an applicable due diligence period. Please do not disturbthe management, business, tenants or sellers. This offer is subject to prior change or sale without notice.

I N C O M E & E X P E N S E S

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ONLINE AONLINE ATT WWWWWW.BULLRE.BULLREALALTYTY..CCOMOM

PLEPLEASE SIGN CASE SIGN CONFIDENTIALITY AONFIDENTIALITY AGREEMENTGREEMENTLLOCAOCATED ON PTED ON PAAGE 17 OF THIS DOCUMENTGE 17 OF THIS DOCUMENT

OROR

R E N T R O L L

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SHOPS & GROCERS TOP EMPLOYERS

MA JOR SPORTS & EDUCATION AREA ATTRACTIONS

• North Macon Plaza• Payne Mill Village

Antique Mall• Vineville Crossing

BaseballIce Hockey

Mercer University Wesleyan College

• Central City Park• Tattnall Square Park• Ocmulgee Mounds

National Historical Park• Amerson River Park• The Grand Opera House• Hargray Capitol Theatre• Theater Macon

Cherry Blossom Festival

Robins Airforce Base

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D E M A N D G E N E R A T O R S

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A R E A M A P

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O P P O RO P P O RT U N I T Y ZT U N I T Y ZO N E OO N E OV E RV E RV I E WV I E WQualified Opportunity Zone (QOZ) Investment: A QOZ investment allows for thereduction of deferred gains from the sale or exchange of prior investments. QOZinvestments maintained for at least five years by the end of 2026 will qualify for a10% reduction of deferred capital gains tax liability (for the original capital gain).If the gain has been invested in an opportunity fund for seven years by the endof 2026, the tax liability on the original gain is reduced by 15%.

B E N E F I TB E N E F I TS TS TO T E N A N TO T E N A N TSSInvestors in Qualified Opportunity Funds can achieve significant tax benefits forequity investments, including tax deferral and permanent tax reduction.

To remain certified as a Qualified Opportunity Fund, the Fund must hold at least90% of its assets in Qualified Opportunity Zone property. Such property includescertain stock or partnership interests of the underlying business, and/orbusiness property (personal and/or real property) of a Qualified OpportunityZone business.

L EL EA R N M O R E H E R EA R N M O R E H E R E• Qualified Opportunity Funds

• U.S. Department of the Treasury Releases Proposed Regulations onOpportunity Zones

• U.S. Department of the Treasury: (CDFI) Opportunity Zones Resources

• IRS Revenue Procedure - PDF

• Tax Cuts and Jobs Act - PDF

• Enterprise Community (Choosing Opportunity Zones)

• Commercial Real Estate Show - Opportunity Zones Overview

• CohnReznick Tax Advisory

*Disclaimer: Consult tax adviser as it relates to benefits.

O P P O R T U N I T Y Z O N E

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* Source: https://MaconGA.org, https://MaconChamber.com

M AM ACCO N , G AO N , G AWith over 155k residents, Macon is the 4th-largest city in Georgia and is part ofthe Macon-Warner Robins CSA. Nicknamed “The Heart of Georgia,” Macon ishome to numerous historical sites and museums and boasts strong education,healthcare, agriculture and defense industries.

Macon is a center of commerce and culture in central Georgia, and recent jobgrowth and home price increase demonstrate the steady and constant growth ofthe market. Per "Sperling's Best Places," jobs are estimated to increase 35% overthe next ten years.

With Mercer University, Middle Georgia State University and Wesleyan College alllocated within city limits, Macon is a hub of education in Central Georgia. Mercer,along with Georgia Tech, University of Georgia and Emory University, is one of theonly schools in the state to earn a spot on U.S. News & World Report’s list for topNational Universities.

Healthcare is another strong suit of Macon. Navicent Medical Center is a Top 10hospital in the state of Georgia according to U.S. News & World Report and hasover 600 licensed beds. Coliseum Medical Center, across the Ocmulgee Riverfrom Downtown Macon, also offers over 300 beds.

There are plenty of enjoyable attractions to do in and around Macon. TheMuseum of Aviation at Robins Air Force Base is the largest tourist attraction inthe state outside of Atlanta. The International Cherry Blossom Festival lasts 10days each March and brings visitors from around the country to Macon to enjoythe 300,000 blossoms.

A B O U T T H E A R E A

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I N T H E A R E A

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I N T H E A R E A

N O RN O RT H M AT H M ACCO N P L A ZO N P L A ZAAA new 166,465 SF mixed-use shopping center opened inlate 2019. The tenants include Homegoods, Michaels,Beall’s Outlet, Old Navy, Five Below, Famous Footwearand Lifeway Christian Resources. The shopping center islocated off I-75 and Bass Road.

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H AH AY H O U S EY H O U S EHidden within Macon’s boundaries is a beautiful 18,000SF, Italian Renaissance Revival mansion named the HayHouse. The property was built in the mid-1800s amidstthe civil war and has withstood the test of time. Themagnificent mansion attracts thousands of visitorsannually to marvel at the extravagant finishes andarchitecture.

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C H E R RC H E R RY B LY B LO S S O M F EO S S O M F ESST I VT I VA LA LThe Cherry Blossom Festival allows all to enjoy thebeauty of more than 300,000 Yoshino cherry trees in fullbloom - the most in the world. Annually thousands oftourist come to "Eat, Drink, Be Cherry" and "Think Pink"while joining in the celebration with events, concerts,exhibits, outdoor fair, arts and crafts, food and more

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M E RM E RC E R U N I V E RC E R U N I V E RS I T YS I T YMercer University is a private, faith-based institution inthe South with three campuses in Atlanta, Macon andSavannah Georiga. With over 8,600 students activelyenrolled in over 12 schools, the University offers itsstudents a rich Christian experience. The Universityoffers programs ranging from associates to doctorateand specializes in academic research. The school hasbeen an active partner in rebuilding Macon and islocated less than 3 miles from the property

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RRO B I N S A I R FO B I N S A I R FO RO RC E BC E BA S EA S EThe Robins Air Force Base in neighboring Warner-Robinsis one of the state’s largest employers and mostinfluential demand drivers. The base has been standingsince WW2 and serves as a major air force commandwith over 23,000 personnel. The base has added 1,200new jobs in 2019 including a new drone division.

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T H E S H O P P ET H E S H O P P ES AS AT R I V E R C RT R I V E R C RO S S I N GO S S I N GThe Shoppes at River Crossing is a 750,000 SF, open-airshopping, dining and entertainment destination locatedat the intersection of I-75 and Riverside Drive in Macon.The open-air center is anchored by two departmentstores; five mid-size anchor stores; numerous sit-downrestaurants and more than 40 specialty retailers.Shopping, dining or just people-watching is easy to doat The Shoppes at River Crossing.

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A M A ZA M A ZO N F U L F I L L M E N T C E N T E RO N F U L F I L L M E N T C E N T E RThe 1 million SF Amazon Fulfillment Center on Skipper Road opened in July (2019) andhas nearly doubled the number of employees it promised Middle Georgia. About 900full-time employees work at the facility and about 780 of them are new hires fromMiddle Georgia.

RRO B I N S A I R FO B I N S A I R FO RO RC E BC E BA S EA S EThe Robins Air Force Base in neighboring Warner-Robins is one of the state’s largestemployers and most influential demand drivers. The base has been standing since WW2and serves as a major air force command with over 23,000 personnel. The base hasannounced it added 1,200 new jobs at the end of 2019 including a new drone division.

I RI RV I N G CV I N G CO N S U M E R P RO N S U M E R P RO D U CO D U C TTSSIrving Consumer Products is nearing completion of their $ 400 million, 800,000 SF stateof the art household tissue plant – Irving’s first plant in the south. Macon was chosenfrom among 64 other communities in the South.

G R A P H I C PG R A P H I C PAAC K AC K AG I N G I N T E R N AG I N G I N T E R N AT I O N A LT I O N A L , L L, L LCCGraphic Packaging International, LLC recently announced a $140 million investment intheir mill. They have operated in Macon since 1947.

N I C H I H AN I C H I H ANichiha announced that it will be make a $120 million expansion that doubles the sizeof its facility – Macon is the company’s first U.S. manufacturing facility and was chosenafter a vigorous competition.

T YT YS O N FS O N FO O D SO O D STyson Foods is doubling the size of their distribution center which will add 250 newworkers.

SSTTA R S N AA R S N AC KC KSSStar Snacks is building a new 200,000 SF peanut processing and manufacturing facility –their first plant in the U.S., choosing Macon over many others.

Amazon Fulfillment

Robins Air Force Base Central Georgia Technical College

A R E A D E V E L O P M E N T S

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E M B R A E RE M B R A E REmbraer – the third largest aircraft manufacturer in the world, based in Brazil, justannounced it is leasing a 155,000 SF. facility at the Middle Georgia Regional Airport.

C A L I FC A L I FO R N I A C E R EO R N I A C E R EA L P RA L P RO D U CO D U C TTSSCalifornia Cereal Products recently purchased an empty 454,476 SF facility and plans toemploy 235 people.

KKU M H O T I R EU M H O T I R EKumho Tire recently finished their 1,000,000 SF facility which employs about 500.

SST E P H E N S AT E P H E N S AV I AV I AT I O N & D E F E N S E ST I O N & D E F E N S E SYYSST E M ST E M SStephens Aviation & Defense Systems just leased a huge hangar at the Middle GeorgiaRegional Airport.

F R E U D E N B E RF R E U D E N B E RG P E R FG P E R FO R M A N C E M AO R M A N C E M AT E R I A L ST E R I A L SFreudenberg Performance Materials in Macon since 1986 recently expanded their facility.

F I RF I RSST Q UT Q UA L I T Y BA L I T Y BA BA BY P RY P RO D U CO D U C TTS A N D PS A N D PAAC K AC K AG I N GG I N GFirst Quality Baby Products and Packaging is renovating and expanding their 750,000 SFpacking facilities with plans to do the same for the Baby Products facilities.

M E RM E RC E R U N I V E RC E R U N I V E RS I T YS I T YMercer University just completed a $44 million, 144,00 SF science center.

N O RN O RT H M AT H M ACCO N P L A ZO N P L A ZAAA new 166,465 SF mixed-use shopping center opened in late 2019. The tenants includeHomegoods, Michaels, Beall’s Outlet, Old Navy, Five Below, Famous Footwear andLifeway Christian Resources. The shopping center is located off I-75 and Bass Road.

Tyson Foods Kumho Tire

A R E A D E V E L O P M E N T S

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Bull Realty is a commercial real estate sales, leasing, and advisory firm headquartered in Atlanta licensed in nine Southeaststates. The firm was founded in 1998 on two primary missions: to provide a company of advisors known for integrity and toprovide the best disposition marketing in the nation. Still guided by these philosophies, the firm's services have expandedto include disposition, acquisition, project leasing, tenant representation and consulting services. To add additional valueand efficiency for clients, advisors focus on specific sectors and services in the office, retail, industrial, multifamily, land,healthcare, senior housing, self-storage, automotive, hospitality and single tenant net lease sectors.

The firm produces America's Commercial Real Estate Show, a national video show and podcast enjoyed by millions ofpeople around the country. Industry analysts, leading market participants and the firm's founder Michael Bull share marketintelligence, forecasts and success strategies. The show has aired every week since 2010 on Apple Podcast, all majorpodcast sites, YouTube and www.CREshow.com.

P RP RO F EO F ES S I O N A L BS S I O N A L BAAC KC KG RG RO U N DO U N DJoe Mitchell works with Bull Realty’s National Retail Group in leasing and investments sales of shopping centers throughoutthe Southeast.

Mr. Mitchell joined Bull Realty as a member of the Business Development Program where he trained under CEO andManaging Broker, Michael Bull. This comprehensive program covered deal generation, negotiating tactics, closingtechniques and real estate best practices.

An Atlanta native, Joe graduated from the University of Georgia and received his B.B.A in Real Estate from the Terry Collegeof Business. As a licensed real estate professional, Joe strives to serve his clients with the upmost integrity, respect andvalue.

J O E M I TJ O E M I TC H E L LC H E L LVV.P.P. The R. The Reettail Grail Groupoup

Bull Realty Inc.50 Glenlake Parkway, Suite 600Atlanta, GA 30328404-876-1640 [email protected]

B R O K E R P R O F I L E S

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Joe Mitchell404-876-1640 [email protected]

Bull Realty, Inc.50 Glenlake Parkway, Suite 600Atlanta, GA 30328

This Confidentiality Agreement (“Agreement”) is made and agreed to for the benefit of the undersignedparty (“Receiving Party”), the owner of the subject property (the “Seller”) and undersigned broker BullRealty Incorporated (“Broker”). Now therefore in consideration of the privileges granted to Receiving Partywith respect to receiving certain confidential information, and other good and valuable consideration, theReceiving Party hereby agrees to the following:

I. Confidential Information:Receiving Party will receive confidential information regarding property referred to as 33553355 PioPio NonoNonoAAvvenueenue MacMacon,on, GAGA 3120631206. Prospect agrees to not disclose to any person that the property may be availablefor sale or lease, or that discussions or negotiations are taking place concerning the property, nor any terms,conditions, or other facts with respect to the property, including but not limited to tenant information, leaserates, lease expirations, income and expenses, and any such possible purchase, including the status thereof.The term “person” used in this agreement shall be interpreted broadly and shall include, without limitation,any corporation, company, partnership or individual other than parties to which Broker approves in writing.Receiving Party may share information with directors, officers, employees, agents, affiliates, counsel,lending sources, accountants or representatives of Receiving Party that Receiving Party notifies of therequirements of this Agreement. Receiving Party agrees to not contact the property owner, themanagement, the tenants, the lender, the vendors, the insurers, the employees or the customers of anybusiness at the site.

II. Acting as a Principal:Receiving Party hereby warrants that it is acting as a principal only, and not as a broker, regarding thiscontemplated transaction. Receiving Party acknowledges that Broker is working an agency capacity asrepresenting the Seller only in this transaction and is the only Broker involved in this potential transaction.Receiving Party agrees to not be involved in any arrangement to lease or purchase the property, in whole orin part, as a lender, partner, buyer of the note, buy in foreclosure, buy from bankruptcy court, or in anyother manner acquire an investment in, joint venture or control of the property, unless Bull Realty,Incorporated is paid a commission at closing as per separate agreement with Seller.

This agreement will expire two years from the date hereof.

III. Governing LawThis Agreement shall be governed and construed in accordance with the laws of the State of Georgia.

If you are a broker, or a principal desiring to include an outside broker, contact the listing agent directly for aBuyer and Buyer’s Broker Confidentiality & Commission Agreement.

Accepted and agreed to __ / __ / __

Receiving Party

Signature

Printed Name

Title

Company Name

Address

Email

Phone

Fax

SIGN CONFIDENTIALITYAGREEMENT ONLINE

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C O N F I D E N T I A L I T Y A G R E E M E N T

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D I S C L A I M E R

Bull Realty has been retained as the exclusive listing broker to arrange the sale of the Subject Property.

This Offering Memorandum contains selected information pertaining to the Property but does not purport to be all-inclusive or to contain all of the information thata prospective purchaser may require. All financial projections are provided for general reference purposes only and are based upon assumptions relating to thegeneral economy, competition and other factors, which therefore, are subject to material change or variation. Prospective purchasers may not rely upon the financialprojections, as they are illustrative only. An opportunity to inspect the Property will be made available to qualified prospective purchasers.

In this Offering Memorandum, certain documents, including financial information, are described in summary form and do not purport to be complete or accuratedescriptions of the full agreements involved, nor do they constitute a legal analysis of such documents. Interested parties are expected to review independently alldocuments.

This Offering Memorandum is subject to prior placement, errors, omissions, changes or withdrawal without notice and does not constitute a recommendation,endorsement, suitability or advice as to the value of the Property by Bull Realty Inc. or the current Owner/Seller. Each prospective purchaser is to rely upon its owninvestigation, evaluation and judgment as to the advisability of purchasing the Property described herein.

Owner/Seller expressly reserve the right, at its sole discretion, to reject any or all expressions of interest or offers and/or to terminate discussions with any party atany time with or without notice. Owner/Seller shall have no legal commitment or obligation to any purchaser reviewing this Offering Memorandum or making an offeron the Property unless a written agreement for the purchase of the Property has been fully executed, delivered and approved by the Owner/Seller and any conditionsto the purchaser's obligations therein have been satisfied or waived. The Owner/Seller reserves the right to move forward with an acceptable offer prior to the call foroffers deadline.

This Offering Memorandum may be used only by parties approved by the Broker. The Property is privately offered, and by accepting this Offering Memorandum, theparty in possession hereof agrees (i) to return it if requested and (ii) that this Offering Memorandum and its contents are of a confidential nature and will be held andtreated in the strictest confidence. No portion of this Offering Memorandum may be copied or otherwise reproduced or disclosed to anyone without the prior writtenauthorization of Bull Realty, Inc. The terms and conditions set forth above apply to this Offering Memorandum in its entirety and all documents, disks and otherinformation provided in connection therewith.

S h o p p i n g C e n t e r i n M a c o n O p p o r t u n i t y Z o n e | W e s t s i d e P l a z a | 9 . 3 % C a p R a t e | P a g e 1 8 o f 1 9

Page 19: OFFERING MEMORANDUM · Shopping Center in Macon Opportunity Zone | Westside Plaza | 9.3% Cap Rate | Page 6 of19 INCOME SUMMARY Rents $71,340 Water Reimbursement $2,100 Vacancy Cost

2020 Bull Realty, Inc. All rights reserved. Information contained herein may have been provided by the seller, landlord or other outside sources. While deemedreliable, it may be estimated, projected, limited in scope and is subject to change or inaccuracies. Pertinent information should be independently confirmed prior to

lease or purchase offer or within an applicable due diligence period.

Please do not visit site without an appointment.Please do not disturb management or tenants.

JOE MITCHELLV.P. The Retail Group

[email protected] x185

TO SCHEDULE A PROPERTY VISIT OR TO REVIEW THE FINANCIALS CONTACT: