STARBUCKSFARGO, ND

SUBJECT PROPERTY PHOTO

STARBUCKS

5.50%CAP

$1,971,327PRICE

LEASEABLE SF2,356 SF

LAND AREA0.90 Acres

LEASE TYPENN

LEASE EXPIRATION2/29/2028

YEAR BUILT2017

4480 26TH AVE S, FARGO, ND 58103

Brand new, build-to-suit Starbucks

10-year lease with rental increases every five years

No early termination clause

Rapidly growing area - $97K avg. HH Income within a 3-Mile radius

Located less than 1 mile from the brand new 1 million square foot,

$494M Sanford Medical Center

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

2

Overview

THE SUBJECT PROPERTY is unique in that it is the first freestanding Starbucks in the Fargo-Moorhead MSA. The asset has a 10-year lease with 10% rental increases in the base term and four 5-year options, and no early termination clause.

The site is located in West Fargo, one of the fastest growing areas in the Fargo-Moorhead MSA, and features one of the highest average household income metrics in North Dakota at nearly $98K per year. Fargo has been ranked as one of the top coffee drinking cities in the country, which positions the subject property for tremendous success within the market. The property sits on the border of the affluent Anderson Park and Amber Valley neighborhoods of Fargo; this will be the only Starbucks to service these two neighborhoods. Fargo has been one of the fastest growing MSAs in the country for the last several years - consistently hitting over 2% annual population growth.

THE RETAIL MARKET - From 2010-2017 there has been a 45% increase in population within a 3-mile radius of the subject property with an additional 20% growth projected by 2021. There are also over 12 apartment complexes within a 1-mile radius of the subject property, establishing a strong consumer base.

JOHN ANDREINIjandreini@capitalpacific.comPH: 415.274.2715CA BRE# 01440360

Contact the team

IN CONJUNCTION WITH ND LICENSED BROKER: Ben Meier of Lerner Companybmeier@lernerco.com PH: 402.502.4715

STARBUCKS HAS OVER 13,000 LOCATIONS THE U.S.

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

RICK SANNERrsanner@capitalpacific.comPH: 415.274.2709CA BRE# 01440360

3

Investment Highlights

94

29

29

94

9494

Shey

enne

Stre

et

170th Avenue SE

13th Avenue S

40th Avenue S 40th Avenue S

13th Avenue E

45th

Stre

et S

45th

Stre

et S

Main AvenueMain Avenue

Calic

o Dr

ive

S

Freedom Elementary

West Fargo High School

Eastwood Elementary

South High School

Lewis & Clark Elementary

Carl Ben Eilson Middle

School

Ed Clapp Elementary

Cheney Middle School

Trinity Elementary

Fargo Plaza

West Acres

TJ Maxx Plaza

®

Westgate Commons

BISMARK

HOUSING110,908 RESIDENTS

WITHIN 5 MILES

Aerial

8,440 DAILY

27,170 DAILY

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

5

Zoomed-In AerialSurrounding Retail

5

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

PRICE $1,971,327 Price Per Square Foot: $836.73

Capitalization Rate: 5.50%

Total Rentable Area (SF): 2,356

Lot Size (AC): 0.90

STABILIZED INCOME PER SQUARE FOOTScheduled Rent $46.02 $108,423

Effective Gross Income $46.02 $108,423

LESS PER SQUARE FOOTTaxes NNN $0.00

Insurance NNN $0.00

Total Operating Expenses NNN $0.00

EQUALS NET OPERATING INCOME $108,423

Landlord is responsible for Roof and Structure

6

Income & Expense

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

TENANT INFO LEASE TERMS RENT SUMMARY

TENANT NAME SQ. FT. CURRENT RENT

MONTHLY RENT

YEARLYRENT

MONTHLY RENT/FT

YEARLYRENT/FT

Starbucks 2,356 11/15/2017 11/14/2022 $108,423 $9,035 $108,423 $3.83 $46.0211/15/2022 11/14/2027 $9,939 $119,265 $4.22 $50.62

Option 1 11/15/2027 11/14/2032 $10,933 $131,192 $4.64 $55.68Option 2 11/15/2032 11/14/2037 $12,023 $144,280 $5.10 $61.24Option 3 11/15/2037 11/14/2042 $13,225 $158,700 $5.61 $67.36Option 4 11/15/2042 11/14/2047 $14,548 $174,579 $6.17 $74.10

TOTALS: 2,356 $108,423 $9,035 $108,423 $3.83 $46.02

7

Rent Roll

Site Plan

This site plan is a rendering that has been created based on sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

25SPACES

2,356RENTABLE SF

0.90ACRES

45th

Stre

et S

outh

Priv

ate

Acce

ss R

oadPYLON SIGN

2017 NET REVENUES$22.4B

The world’s #1 specialty coffee retailer, Starbucks has more than 25,000 coffee shops in about 70 countries, and over 254,000 employees. The outlets offer coffee drinks and food items, as well as roasted beans, coffee accessories, and teas.

In 2017 the chain had a net revenue of $22.4 Billion, and an operating income of $4.4 Billion. Starbucks has a credit rating of A- from Standard & Poor, and is traded on the NASDAQ under SBUX.

ABOUT STARBUCKS

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

RANKINGS

#3 - FORTUNE’S list of world’s most admired companies (2017)#146 - FORTUNE 500 list (2017)#45 - FORTUNE’S change the world list (2017)

S&P RATEDA-

9

Tenant Overview

POPULATION

1-MILE 3-MILES 5-MILES

2010 2,846 29,171 88,505

2017 4,541 42,218 110,908

2022 5,597 50,493 126,958

2017 HH INCOME

1-MILE 3-MILES 5-MILES

Average $92,943 $97,906 `$83,968

Median $75,288 $75,257 $60,196

TOP EMPLOYERS

EMPLOYER

Sanford Medical Center Fargo

North Dakota State University

Essentia Health

Fargo Public School District

Fargo VA Health Care System

FARGO

THE AVERAGE HOUSEHOLD INCOME WITHIN A 3-MILE RADIUS

IS OVER $97K

MINNEAPOLIS (3 HR 50 MIN, 237 MILES)

This site plan is a rendering that has been created based on sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 10

Demographics

FARGO,NORTH DAKOTA

FARGO is located in Cass County, North Dakota, along the Red River, which forms the border between Minnesota and North Dakota. An estimated 120,762 people live in Fargo, and nearly 225,000 live in the greater Fargo-Moorhead metropolitan area. With a growth rate of 72.9%, West Fargo is one of the fastest growing communities in North Dakota.

The city is home to North Dakota State University, which has over 14,000 students. Combined with Minnesota State University and Concordia College in Moorhead, the three schools form the Tri-College University system of Fargo-Moorhead with a total student population of over 25,000.

Microsoft’s second largest field campus is also located in Fargo with over 1,500 employees. In 2015, the campus, which has existed since 2001, was updated and expanded to include a state-of-the-art regional marketing and sales center.

FARGO is the economic center of southeastern North Dakota and a portion of Northwestern Minnesota. Historically, the Fargo area economy has been

dependent on agriculture, but in recent decades has grown to include large food processing, manufacturing, and technology sectors. Fargo is also the cultural, commerce, manufacturing, health care, and education hub for the region.

FARGO ECONOMY

225,000

FARGO-MOORHEAD MSA POPULATION (ESTIMATED)

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

11

Location Overview

INDIANAPOLIS, INDIANA

We’d love to hear from you.

CAPITAL PACIFIC COLLABORATES. CLICK HERE TO MEET OUR SAN FRANCISCO TEAM:

JOHN ANDREINIjandreini@capitalpacific.comPH: 415.274.2715CA BRE# 01440360

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

IN CONJUNCTION WITH ND LICENSED BROKER: Ben Meier of Lerner Companybmeier@lernerco.com PH: 402.502.4715

JOE CACCAMOJOHN ANDREINI

ZANDY SMITH

DAVE LUCAS

RICK SANNER JACK NAVARRA

CHRIS KOSTANECKIZEB RIPPLE CHRIS PETERS

RICK SANNERrsanner@capitalpacific.comPH: 415.274.2709CA BRE# 01440360

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