INVESTMENT OPPORTUNITY (PDF) by pengxiuhui

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                                    KING’S RIDGE
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                                                              BETHANY BEND




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    INVESTMENT OPPORTUNITY
    BETHANY POINTE
    13920 Highway 9
    Alpharetta, GA 30004
                                    CONFIDENTIAL INFORMATION
                                  INFORMATION NOT WARRANTED


This Offering Memorandum and any subsequent evaluation material you may be provided (collectively known as
the “Offering Memorandum”) is intended solely for your limited use in considering whether to pursue negotiations to
acquire be Bethany Pointe (the “Property”) located in Alpharetta, Georgia. The Property is being marketed for sale by
Carter (“Broker”).

 The Offering Memorandum contains brief, selected information pertaining to the business and affairs of the Property
and has been prepared by Broker. It does not, however, purport to be all-inclusive or to contain all of the information
that a prospective purchaser may desire. Broker makes no representation or warranty, express or implied, as to the
accuracy or completeness of the Offering Memorandum or any of its contents, and no legal liability is assumed to be
implied with respect thereto.

By acknowledgment of your receipt of the Offering Memorandum you agree that the Offering Memorandum and
its contents are confidential, that you will hold and treat it in the strictest of confidence, that you will not directly or
indirectly disclose, or permit anyone else to disclose, the Offering Memorandum or its contents to any other person,
firm, or entity (including, without limitation, any principal for whom you have been engaged), without prior written
authorization of Owner or Broker and that you will not use or permit to be used the Offering Memorandum or its
contents to be copied or used in any fashion or manner detrimental to the interest of Owner. Photocopy or other
duplication is strictly prohibited.

THE OFFERING MEMORANDUM SHALL NOT BE DEEMED TO REPRESENT THAT STATE OF AFFAIRS OF THE
PROPERTY OR CONSTITUTE AN INDICATION THAT THERE HAS BEEN NO CHANGE IN THE BUSINESS OR AFFAIRS
OF THE PROPERTY SINCE THE DATE OF PREPARATION OF THE OFFERING MEMORANDUM.

The information provided in the Offering Memorandum has been gathered from sources that are deemed reliable,
but the Broker does not warrant or represent that the information is true or correct. Prospective offerors are advised
to verify information independently. The Offering Memorandum is not to be construed as an offer or as any part of a
contract to sell the Property.

Furthermore, the inclusion or exclusion in the Offering Memorandum of information relating to asbestos or any other
hazardous, toxic or dangerous chemical item, waste or substance (hereinafter collectively referred to as “Waste”)
relating to the Property shall in no way be construed as creating any warranties or representations, expressed or
implied by the Broker as to the existence or nonexistence or nature of Waste in, under or on the Property, it may create
significant legal and/or economic obligations upon the Owner, lessee and/or other holders of interest in the Property or
a part thereof and you are hereby advised to obtain professional assistance such as from a consultant, engineer and/
or attorney prior to taking an interest in the Property or a part thereof.

Receiving party and permitted persons are prohibited from any and all communication with any personnel at the
Property, any tenants of the Property, any party to any of the contracts affecting the Property or any governmental
authority with respect to any information and/or the transaction without, in each instance, obtaining Owner’s prior
written consent, which consent may be withheld in Owner’s sole and absolute discretion. Additionally, interested
party and permitted persons are prohibited from contacting or entering into any discussions or any verbal or written
agreements with any current or former lender, current or former investor, current or former partner and/or current or
former capital provider of Owner or any of Owner’s affiliates regarding any matter or arrangement directly or indirectly
involving the Property, Owner and/or Owner’s affiliates under any circumstances.
                                                                                                      Bethany Pointe




                                     Table of Contents

                                              Section I: Investments Highlights
                                              Investment Summary
                                              Aerial Photographs

                                              Section II: Property Overview
                                              Area Access Maps
                                              Property Photographs
                                              DOT Map
                                              Competitive Leasing Set

                                              Section III: Financial Data
                                              Executive Summary
                                              In-Place Income Reconciliation
                                              Summary of Financial Assumptions
                                              Cash Flow Projections
                                              Rent Roll

                                              Section IV: Market Overview
                                              Alpharetta, GA Market Overview
                                              Demographics




Additional Information may be obtained from:
CASSIDY TURLEY 171 17th Street NW, Suite 1400, Atlanta, GA 30363-1032

Mark Joines                     Drew Fleming                     Debbie Strom                     Morgan Stengel
Vice President, Principal       Vice President, Principal        Marketing Coordinator            Financial Analyst
404.682.3416                    404.682.3410                     404.682.3430                     404.682.3429
Mark.Joines@cassidyturley.com   Drew.Fleming@cassidyturley.com   Debbie.Strom@cassidyturley.com   Morgan.Stengel@cassidyturley.com
                Section I.
    Investment Highlights




1
                                                                                     Bethany Pointe




 13920 Highway 9
 Alpharetta, GA 30004




INVESTMENT SUMMARY
                                                                         PROPERTY DETAILS

Cassidy Turley is pleased to exclusively present           Size / Acreage        8,952 SF / 1.29 Acres
for sale Bethany Pointe, a high quality, 8,952 SF
                                                           Ownership Interest                Fee Simple
bank-owned shopping center located in the heart
of prestigious Alpharetta, Georgia (Atlanta MSA).          Tenants                  Studio 1-1 (Fitness),
Built in 2005, the center is 59% leased and features                            Red Bandana (Pet Store,
a 3,652 vacancy -- perfect for a user-owner or                                   Hang Phan (Nail Salon
opportunistic, IRR-focused investors. Positioned           Occupancy                               59%
on the pin-corner at Bethany Road and Hwy 9,
the center is directly across from the Bethany             Year Built                              2005
                                                                                                            Section I. Investment Highlights



Village Publix shopping center and boasts a strong
                                                           Traffic Count @                  20,000 VPD
traffic count of 20,000 VPD. Furthermore, the               Highway 9                            (2010)
center strategically located in very close proximity
to a Super Target, Fry’s, Walmart Supercenter,                           FINANCIAL OVERVIEW
Costco, Home Depot, Lowe’s, Best Buy, PetSmart,
Michaels, Kohl’s and many others.                          Price                            $1,150,000

                                                           Inplace NOI                         $65,021


                                                       2
                                                                                 Bethany Pointe



INVESTMENT SUMMARY (continued)

By acquiring Bethany Pointe, a successful investor will secure a premium shopping center that features
the following:

     •   Bank-owned, Value-Add Opportunity

     •   59% Occupied by Local Tenants / $65,000 Inplace NOI

     •   Shadow-anchored by Publix/CVS/Starbucks

     •   Highly Visible Location along Highway 9 in Alpharetta

     •   Excellent Property Fundamentals / 20,000 VPD

     •   Top End Alpharetta Demographics (1-Mile Radius: 6,263 Population / $124K HH Income)

     •   40,300+ Residents within 3-Mile Radius

     •   20+ country clubs are located within eight miles of the center

     •   Very Close Proximity to New Fulton County High School




                                                                                                         Section I. Investment Highlights




                                                   3
                                                                                   Bethany Pointe



BANK-OWNED WITH SIGNIFICANT UPSIDE POTENTIAL
With the center currently 59% occupied, new ownership can quickly capitalize on the remaining 3,652
SF vacancy. By leasing up this remaining suite at just $12/SF NNN, new ownership could quickly
increase the NOI by $45,000+.

PREMIUM ALPHARETTA DEMOGRAPHICS
Bethany Pointe is strategically located in the Alpharetta retail corridor west of GA 400, one of the
fastest growing and most affluent submarkets in the Atlanta MSA. Home to several of Georgia’s top
public schools, the area continues to draw thousands of new, affluent residents each year. As of 2010,
Alpharetta was home to 55,000+ citizens, composing roughly 20% of the population of northern Fulton
County. During the workday, the City swells to more than 120,000 residents, workers, and visitors.


                                         1-mile           3-mile          5-mile
             Population                   6,263          40,332          109,041
             Average Household Income   $124,230        $122,138        $128,125



PUBLIX & CVS SHADOW ANCHORED
Located directly across the street from the Bethany Village Publix Center and a new CVS, Bethany
Pointe enjoys the significant patron traffic generated by these necessity tenants. Moreover, Starbucks
has recently opened on the parcel catty-corned to the property.




                                                                                                        Section I. Investment Highlights




                                                   4
                                                                                          Bethany Pointe



OUTSTANDING HIGHWAY 9 LOCATION / 20,000 VPD
Bethany Pointe’s hard corner location at Bethany Road and Hwy is further strengthened by tremendous
visibility at this traffic-signaled intersection. The center enjoys a full ingress/egress intersection on
Bethany Road and a right-in/right-out intersection on Hwy 9. Current traffic counts indicate that
20,000+ vehicles that pass by the center daily. With significant growth occurring in this submarket –
as indicated by the new high school being built a stone’s throw away – the traffic count and resident
population is certain to realize significant gains in future years.



                                                        Cogburn Rd
   1




                                  KING’S RIDGE
                                   CHRISTIAN
                                     SCHOOL                         NEW
                                                               BETHANY BEND




                                                                                           Bet
                                                                HIGH SCHOOL
                                                              (Under Construction)




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                                                                                                           Section I. Investment Highlights



        C

TEMPORARILY DEPRESSED MARKET RENTS
Constructed in 2005, Bethany Pointe’s inplace rental rates are well-below that of competitive centers
built during Alpharetta’s retail boom. When the market firms back up, new ownership will have the
opportunity to bump rents closer to $20/SF NNN from leases signed during the current recession.


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                                                                                                                                  Bethany Pointe

Aerial Photographs

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                                                                                                                                                   Section I. Investment Highlights
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Aerial Photographs




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                                  (Hwy 9)                                       Bethany Pointe
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             Section II.
    Property Overview




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                                    Bethany Pointe

Area Access Maps




                   Bethany Pointe




                                                     Section II. Property Overview
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                                         Bethany Pointe

Area Access Maps




                   Bethany Pointe




                                                          Section II. Property Overview
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                            Bethany Pointe

Property Photographs




                                             Section II. Property Overview
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                            Bethany Pointe

Property Photographs




                                             Section II. Property Overview




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                            Bethany Pointe

Property Photographs




                                             Section II. Property Overview




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                            Bethany Pointe

Property Photographs




                                             Section II. Property Overview




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                                                                                                                               Bethany Pointe

DOT Traffic Count*




                                                                           4,380 vehicles per day




                                                                               16,790 vehicles per day

                                                  Bethany Pointe




                                                10,210 vehicles per day




                                                                           19,550 vehicles per day




                                                                                                                                                Section II. Property Overview
                                                                                                     88,400 vehicles per day


                                                 31,280 vehicles per day




                                                                                    117,060 vehicles per day                             1


  *2010 DOT AADT (Annual Average Daily Traffic) Count
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                                                                                                                                Bethany Pointe

Competitive Leasing Set

  Property                                                                         Building    Rents                     Comments                       Occupancy
                                                                                    Sq.Ft.

  1495 Alpharetta Hwy               1495 Alpharetta Hwy     Alpharetta, GA 30009   12,614      $10.00        Multiple Tenants include Ken Harris          0.00%
                                                                                                              Realty, State Farm and others.




  Windward Way                      12890 Alpharetta Hwy    Alpharetta, GA 30004   13,400      $19.50     Multiple Tenants include Attraction Nails,      0.00%
                                                                                                           Beneficial Finance, Nine Restaurant &
                                                                                                           Bar, Portabellas Cafe, Slender Life and
                                                                                                                           others.

  Midway Centre                     4825 Atlanta Hwy        Alpharetta, GA 30004   19,394      $10.15       Multiple Tenants include Designs by          86.59%
                                                                                                          Susan, Fat Man Cigars, The Fitness Firm,
                                                                                                           Solar Eclipse Tanning Salon, Whimsee
                                                                                                                 Candles & Gifts and others.

  The Village at Crooked Creek      5620 Atlanta Hwy        Alpharetta, GA 30004   15,400      $11.00      Multiple Tenants include Hannah Cafe,         51.17%
                                                                                                           Nick's Grand Slam Pizza, Parcel Plus
                                                                                                            Business Center, Tocayo's Mexican
                                                                                                                   Restaurant and others.

  Gateway Plaza                     5905-5955 Atlanta Hwy   Alpharetta, GA 30004   19,250      $21.50     Multiple Tenants include Atlanta Mattress,     70.82%
                                                                                                          Fajita Grill, Five Oaks Fence, Martial Arts
                                                                                                              Supercenter, Quiznos and others.


  Mardi Gras Plaza                  5155 Highway 9          Alpharetta, GA 30004   13,930      $13.47      Multiple Tenants include Bead Bayou,          62.81%
                                                                                                          Gentlemens Hair, Junebugs Design, The
                                                                                                                   Pet Basket and others.


  Grassland Point Shopping Center   5545 Highway 9          Alpharetta, GA 30004   14,940      $14.00       Multiple Tenants include Carniceria 3        32.13%
                                                                                                             Hermanos, Enterprise Rent-A-Car,
                                                                                                             Nationwide Insurance and others.


  Mardis Gras Plaza                 5165 Hwy 9              Alpharetta, GA 30004   16,000      $10.32     Multiple Tenants include Act 1 Café, The       64.69%
                                                                                                          Barker Lounge, Junebugs Design, Once
                                                                                                                  Upon a Cake and others.


  The Village at Crooked Creek      6300 Hwy 9              Alpharetta, GA 30004   15,700      $10.00     Multiple Tenants include Anytime Fitness,      31.53%
                                                                                                           Crooked Creek Storage, Lilly Nails, Top
                                                                                                            Value Cleaners, Taqueria Las Palmas
                                                                                                                    Restaurant and others.

  Main Street Walk                  480 N Main St           Alpharetta, GA 30009   18,667      $19.00     Multiple Tenants include Beltone Hearing,      57.14%
                                                                                                          Main Street Walk Cleaners, Mezz Spa and
                                                                                                                            others.


  The Arbors of Alpharetta          800 N Main St           Alpharetta, GA 30009   20,370      $19.50       Professional retail/office building, 500     12.36%
                                                                                                             yards south of Windward Pkwy and
                                                                                                                     adjacent to Lowe's.


  South Main Street Shops           131 S Main St           Alpharetta, GA 30009   21,000      $20.00      Multiple Tenants include Borellis Salon,      49.10%
                                                                                                           Comserv Solutions, Snappy Auctions,
                                                                                                           Tinder Box, V Nails & Spa and others.


  Shops at Windward                 4915 Windward Pky       Alpharetta, GA 30004    9,328        Not      Located on the outparcel of Home Depot         100.00%
                                                                                              Disclosed   with interparcel access to Super Walmart
                                                                                                          and shadow anchored by Kroger, Costco,
                                                                                                                                                                    Section II. Property Overview




                                                                                                                      Fry’s, Lowe’s, etc.

  Windward Way                      12890 Alpharetta Hwy    Alpharetta, GA 30009   12,000        Not        Multiple Tenants include Hot Breads,         85.33%
                                                                                              Disclosed     H&R Block, Jersey Mike's Subs and
                                                                                                                          others.


  Francis Corners                   5670 Highway 9 N        Alpharetta, GA 30004   15,400        Not        Multiple Tenants include A&Y Gold,           78.57%
                                                                                              Disclosed    Champion Cleaners, Espressos Coffee,
                                                                                                           Uniglobe Love to Travel, V Nails & Spa
                                                                                                                        and others.




                                                                            16
                                                    Bethany Pointe

Competitive Leasing Set Map




                              Bethany Pointe




                                                                     Section II. Property Overview
                                                              1




                                               17
         Section III.
     Financial Data




18
                                                                                                   Bethany Pointe




                                    EXECUTIVE SUMMARY

                                        PROPERTY DESCRIPTION

Property Type                                                                                           Retail
Size of Improvements                                                                                 8,952 SF
Occupancy as of October 5, 2011                                                                       59.20%

                              ACQUISITION AND RESIDUAL SUMMARY

Purchase Price                                                                                   $1,150,000
Price per SF                                                                                        $128.46
Capitalization Rate                                                                                   5.65%

Net Residual Value as of December 31, 2021                                                       $1,430,000
Residual Capitalization Rate                                                                          9.00%
Residual Cost of Sale                                                                                 6.00%

                                        LEVERAGE SUMMARY [1]

Interest Rate                                                                                          6.25%
Amortization Period                                                                                   20 Years
Loan-To-Value Ratio                                                                                   60.00%
Loan Fee                                                                                               0.50%
Debt Coverage Ratio                                                                                       1.42
Loan Constant                                                                                            8.77%

Purchase Price as of January 1, 2012                                                             $1,150,000
Loan Principal                                                                                     (690,000)
Loan Fee                                                                                              3,450
Equity Requirement                                                                                 $463,450

[1] Leveraged analysis is based on market financing that may or may not be obtainable by a
    particular investor.

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                                                                                                                                       Section III. Financial Data




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                                                                                                                                                              Bethany Pointe

                                             IN-PLACE INCOME RECONCILIATION


Calendar Year
                                                                                                                                                      2012           2012
                            Square             Lease                         Lease                       2012                         2012          Oper. Exp.       Gross
                Tenant       Feet           Commencement                   Expiration                Base Rent PSF                  Base Rent       Recoveries       Rent

 Studio 1-1 (Fitness) [1]     2,250                   1/10                       12/12                   $16.00                         $36,000             $7,882    $43,882
 Red Bandana (Pet Store)      1,250                   3/10                        2/15                   $14.00                         $17,500             $4,379    $21,879
 Hang Phan (Nail Salon)       1,800                   3/10                        2/15                   $15.00                         $27,000             $6,306    $33,306

                              5,300                                                                                                    $80,500             $18,567   $99,067

Vacant                        3,652
Total Square Footage          8,952                                                                                               Effective Gross Income             $99,067

                                                                                                                                  Expenses
                                                                                                                                   Real Estate Taxes                  (13,965)
                                                                                                                                   Insurance                           (1,790)
                                                                                                                                   CAM                                (13,338)
                                                                                                                                   Management Fee (5%)                 (4,953)
                                                                                                                                  Total Expenses                     ($34,046)

                                                                                                                                  Net Operating Income               $65,021




                                                                                                                                                                                         Section III. Financial Data
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                                                      SUMMARY OF FINANCIAL ASSUMPTIONS



                               GLOBAL                                                                                              SECOND GENERATION LEASING
Analysis Period                                                                                Retention Ratio                                                                75%
  Commencement Date                                  January 1, 2012
  End Date                                        December 31, 2021                            Lease Term                                                                 5 Years
  Term                                                      10 Years
                                                                                               2012 Annual Market Rent                                               $14.00 PSF
Area Measures                                                                                    Suite 100/110                                                       $12.00 PSF
   Building Square Footage (RSF)                                   8,952 SF
                                                                                               Rent Adjustment                                                    2.50% Annually
Vacancy Loss [1]                                                        7.00%
                                                                                               Expense Recovery Type [2]                                        NNN + 15% Admin

                                                                                               Downtime
                                                                                                 New                                                                   6 Month(s)
                              REVENUES                                                           Weighted Average                                                      2 Month(s)

Market Rent Growth                                                                             2012 Tenant Improvements
 2013 - 0.00%                    2018   -   3.00%                                                New                                                                 $10.00 PSF
 2014 - 2.00%                    2019   -   3.00%                                                Renewal                                                              $2.00 PSF
 2015 - 3.00%                    2020   -   3.00%                                                Weighted Average                                                     $4.00 PSF
 2016 - 3.00%                    2021   -   3.00%
 2017 - 3.00%                    2022   -   3.00%                                              Commissions
                                                                                                 New                                                                      6.00%
                                                                                                 Renewal                                                                  2.00%
                                                                                                 Weighted Average                                                         3.00%

                              EXPENSES                                                                                                   VACANT SPACE LEASING

Growth Rates                                                                                   Total Vacant as of October 5, 2011                                       3,652 SF
  Operating Expenses                                                    2.50%
  Capital Reserves                                                      0.00%                  Absorption Period Start Date                                       January 1, 2012
  Property Taxes                                                        2.50%
  Property Taxes Reassessed                                                No                  Absorption Period                                                       6 Month(s)

Management Fee (% of EGR)                                               5.00%                  Lease Term                                                                 5 Years

2012 Capital Reserves                                            $0.20 PSF                     2012 Annual Market Rent                                               $12.00 PSF

Operating Expense Source [2]                          7/2011 Appraisal                         Rent Adjustment                                                    2.50% Annually

                                                                                               Expense Recovery Type                                            NNN + 15% Admin

                                                                                               2012 Tenant Improvements                                              $10.00 PSF

                                                                                               Commissions                                                                6.00%

                                                                                               Free Rent                                                               3 Month(s)


Footnotes:

[1] All tenants are subject to a general vacancy loss of 7%.
[2] Tenants reimburse their pro rata share of CAM, taxes and insurance plus a 15% admin fee on CAM and insurance.
                                                                                                                                                                                             Section III. Financial Data




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                                                                                                                 CASH FLOW PROJECTIONS

Calendar Year                                                           2012                2013                2014                   2015                    2016                    2017             2018         2019         2020         2021            2022
Overall Economic Occupancy [1]                                         91.19%              91.21%             91.21%                  94.62%                 91.20%                  97.22%            95.64%       91.13%       97.34%       91.11%         97.58%
Weighted Average Market Rent (PSF)                                     $13.18              $13.18             $13.45                 $13.85                  $14.27                  $14.69            $15.14       $15.59       $16.06       $16.54         $17.04

                                                      CY 2012
REVENUES                                              $/SF/YR

   Gross Potential Rent                              $13.89             $124,324           $126,005            $128,895                $131,592                $134,923               $138,167         $135,848     $139,205     $141,459      $144,679       $148,862
   Absorption & Turnover Vacancy                      (2.04)            ($18,260)                $0                  $0                 ($4,413)                     $0                ($8,141)         ($6,027)          $0      ($8,667)           $0        ($9,438)
   Base Rent Abatements                               (1.22)            ($10,956)                $0                  $0                      $0                      $0                     $0               $0           $0           $0            $0             $0
   Total Minimum Rent                                 10.62                95,108           126,005              128,895                 127,179                 134,923                130,026         129,821      139,205      132,792       144,679        139,424
   Reimbursements
   Real Estate Taxes                                   1.29                11,591            14,315                14,673                  14,535                 15,415                    14,725       15,516       16,600       16,049         17,441         16,660
   Insurance                                           0.19                 1,708             2,110                 2,163                   2,144                  2,272                     2,171        2,287        2,447        2,366          2,571          2,456
   CAM                                                 1.42                12,731            15,722                16,115                  15,965                 16,931                    16,175       17,044       18,233       17,628         19,157         18,300
   Total Reimbursements                                2.91                26,030             32,147               32,951                  32,644                  34,618                   33,071        34,847       37,280       36,043        39,169         37,416
TOTAL GROSS INCOME                                    13.53               121,138           158,152              161,846                 159,823                 169,541                163,097         164,668      176,485      168,835       183,848         176,840
   Vacancy Loss                                        0.00                      0           (11,071)             (11,329)                  (7,084)              (11,868)                    (3,846)      (5,922)     (12,354)      (3,758)      (12,869)        (3,601)
EFFECTIVE GROSS REVENUE                               13.53               121,138           147,081              150,517                 152,739                 157,673                159,251         158,746      164,131      165,077       170,979         173,239

EXPENSES
  Real Estate Taxes                                   (1.56)              (13,965)           (14,314)             (14,672)                (15,039)                (15,415)                  (15,800)     (16,195)     (16,600)     (17,015)      (17,441)       (17,877)
  Insurance                                           (0.20)               (1,790)            (1,835)              (1,881)                 (1,928)                 (1,976)                   (2,026)      (2,076)      (2,128)      (2,181)       (2,236)        (2,292)
  CAM                                                 (1.49)              (13,338)           (13,672)             (14,014)                (14,364)                (14,723)                  (15,091)     (15,469)     (15,855)     (16,252)      (16,658)       (17,074)
  Management Fee (5%)                                 (0.68)               (6,057)            (7,354)              (7,526)                 (7,637)                 (7,884)                   (7,963)      (7,937)      (8,207)      (8,254)       (8,549)        (8,662)
TOTAL EXPENSES                                        (3.93)              (35,150)           (37,175)             (38,093)                (38,968)                (39,998)                  (40,880)     (41,677)     (42,790)     (43,702)      (44,884)       (45,905)
NET OPERATING INCOME                                   9.61                85,988           109,906              112,424                 113,771                 117,675                118,371         117,069      121,341      121,375       126,095         127,334

CAPITAL COSTS
  Tenant Improvements                                 (4.08)              (36,520)                 0                     0                  (7,868)                     0                   (16,935)     (10,746)           0      (15,455)            0        (19,632)
  Leasing Commissions                                 (1.47)              (13,164)                 0                     0                  (4,175)                     0                    (7,702)      (5,702)           0       (8,201)            0         (8,929)
  Capital Reserves                                    (0.20)               (1,790)            (1,790)               (1,790)                 (1,790)                (1,790)                   (1,790)      (1,790)      (1,790)      (1,790)       (1,790)        (1,790)
TOTAL CAPITAL COSTS                                   (5.75)              (51,474)            (1,790)               (1,790)               (13,833)                 (1,790)                  (26,427)     (18,238)      (1,790)     (25,446)       (1,790)       (30,351)
OPERATING CASH FLOW                                    3.86                34,514           108,116              110,634                   99,938                115,885                    91,944        98,831     119,551        95,929      124,305          96,983

ACQUISITION/RESIDUAL
  Acquisition Cost                                    (1,150,000)                0                  0                       0                      0                       0                      0             0            0            0            0     All Cash
  Net Residual Value                                           0                 0                  0                       0                      0                       0                      0             0            0            0    1,428,508       IRR
CASH FLOW BEFORE DEBT                                 (1,150,000)          34,514           108,116              110,634                   99,938                115,885                    91,944        98,831     119,551        95,929     1,552,813      9.90%

FINANCING
   Principal                                            690,000                 0                  0                    0                       0                      0                          0            0            0            0      (449,181)    Leveraged
   Loan Fees & Debt Service                              (3,450)          (60,521)           (60,521)             (60,521)                (60,521)               (60,521)                   (60,521)     (60,521)     (60,521)     (60,521)       (60,521)      IRR




                                                                                                                                                                                                                                                                           Section III. Financial Data
CASH FLOW AFTER DEBT                                  ($463,450)         ($26,007)          $47,595              $50,113                 $39,417                 $55,364                $31,423         $38,310      $59,030      $35,408     $1,043,111     13.36%

All Cash Summary
    Cash-on-Cash Return                                                     3.00%              9.40%                 9.62%                   8.69%                 10.08%                    8.00%         8.59%       10.40%        8.34%        10.81%
    Cash-on-Cash Return (Cumulative Average)                                3.00%              6.20%                 7.34%                   7.68%                  8.16%                    8.13%         8.20%        8.47%        8.46%         8.69%

Leverage Summary
   Leveraged Cash-on-Cash Return                                            -5.61%            10.27%               10.81%                    8.51%                 11.95%                    6.78%         8.27%       12.74%        7.64%        13.76%
   Leveraged Cash-on-Cash Return (Cumulative Average)                       -5.61%             2.33%                5.16%                    5.99%                  7.18%                    7.12%         7.28%        7.96%        7.93%         8.51%

Debt Coverage Ratio                                                           1.42              1.82                   1.86                    1.88                   1.94                     1.96         1.93         2.00         2.01          2.08
[1] This figure takes into account credit loss, leaseup downtime, and rollover downtime.


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                                                                                                                                             22
                                                                                                                                                                      Bethany Pointe

                                                                             RENT ROLL
                                                                       (As of October 5, 2011)

  Tenant Name              Floor      Rate & Amount                                             Months         Pcnt             Description of     Imprvmnts     Commssns      Assumption about
Type & Suite Number        SqFt          per Year            Changes          Changes             to            to             Operating Expense     Rate          Rate        subsequent terms
Lease Dates & Term       Bldg Share     per Month               on               to             Abate         Abate            Reimbursements       Amount        Amount       for this tenant

Vacant                                  $12.00             Mar-2013          $12.30               1-3        100%           See method:                 $10.00          $3.60       Market
Retail, Suite: 100/110    3,652        $43,824             Mar-2014          $12.61                                       NNN+15%Admin(CAM&                             6.00% See assumption:
Mar-2012 to Feb-2017     40.80%         $1.00              Mar-2015          $12.92                                           Ins)                   $36,520          $13,164   Ste 100/100
60 Months                              $3,652              Mar-2016          $13.25


Studio 1-1                              $16.00                  -                -                 -             -          See method:             -             -                  Option
Retail, Suite: 120/130    2,250        $36,000                                                                            NNN+15%Admin(CAM&                                    See assumption:
Jan-2010 to Dec-2012     25.13%         $1.33                                                                                 Ins)                                               Bethany MLA
36 Months                               $3,000


Red Bandana                             $14.00             Mar-2013           $15.00               -            -           See method:             -             -                  Option
Retail, Suite: 140        1,250        $17,500             Mar-2014           $15.47                                      NNN+15%Admin(CAM&                                    See assumption:
Mar-2010 to Feb-2015     13.96%         $1.17                                                                                 Ins)                                               Bethany MLA
60 Months                             $1,458.33


Nail Salon                              $15.00                  -                -                -             -           See method:             -             -                  Market
Retail, Suite: 150        1,800        $27,000                                                                            NNN+15%Admin(CAM&                                    See assumption:
Mar-2010 to Feb-2015     20.11%         $1.25                                                                                 Ins)                                               Bethany MLA
60 Months                              $2,250


                                                                                                                                                    -             -




                                                                                                                                                                                                         Section III. Financial Data
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                                                                                           23
          Section IV.
     Market Overview




24
                                                                                     Bethany Pointe

Alpharetta, GA Market Overview

Alpharetta, located in the northern tip of Fulton County, lies in north-central Georgia in
the foothills of the Appalachian Mountains. The warm southern climate produces plentiful
hardwood and pine forests, making the area a beautiful place to live. The Chattahoochee
River, the source of drinking water for most of Fulton County, is one of the smallest water
sources in the country relative to the size of the population it supports.

Alpharetta, one of the fastest growing communities in the South, is in the heart of the largest fiber-linked
network in the United States. Many high-tech companies including Lucent, IBM, Sun Microsystems, AT&T,
Siemens, Verizon, Alltel, and E*Trade call Alpharetta home. In addition, it is a 30-minute drive from one
of the world’s busiest airports, the Hartsfield-Jackson Atlanta International, making Alpharetta the ideal
location for raising families and living a quality lifestyle.

Economics
Alpharetta’s businesses employ more than 120,000 people, three times the city’s total
population. From corporate campuses of global leaders to small, family-owned shops,
there are more than 3,600 businesses in Alpharetta. The vast majority of jobs were
created with the opening of North Point Mall in 1993; in fact, almost 70,000 jobs were
created in the past five years alone. In recent years Alpharetta has been in the national
spotlight, as a leading location for technology-fused businesses, by publications such
as USA Today and Yahoo! Internet Life. In the heart of the largest fiber-linked network
in the United States, just minutes away from one of the world’s busiest airports, and
providing easy access to cutting-edge research universities, Alpharetta is the ideal
location for companies on the forefront of the modern economy.

Recreation
Verizon Wireless Amphitheatre - Now in its third season, the Amphitheatre has quickly become the
entertainment destination for music lovers across the region. Set on 45 acres of beautifully-landscaped
wooded land in Alpharetta, GA, the 12,000-seat Verizon Wireless Amphitheatre at Encore Park provides
a unique setting for both music lovers and first-time concertgoers. The venue has featured concert
performances by the world’s biggest stars: Eagles, Kenny Chesney, John Mayer, Tom Petty & the
Heartbreakers, Stevie Wonder, Jason Mraz, Journey, Sugarland, Stone Temple Pilots and many more. The
state-of-the-art venue is owned by the Robert W. Woodruff Arts Center, Inc., and is operated by the Atlanta
Symphony Orchestra.

The Alpharetta Recreation and Parks Department is nationally accredited and recognized for its outstanding
programs for children, adults, and seniors. They offer year-round sports, activities, and special events.
Furthermore, the department manages and operates one of the finest equestrian facilities in the Southeast
at Wills Park. Additionally, the Autrey Mill Nature Preserve and Heritage Center is located in Alpharetta.
                                                                                                              Section IV. Market Overview




This 46-acre forest has walking trails, picnic areas, and historic sites.




                                                    25
                                                                                      Bethany Pointe



Education
Public schools serving the City of Milton and North Fulton County are among the best in the nation. With
approximately 89% of area high school graduates taking the SAT, as compared to 48% nationally; the
average SAT score for our schools is 1092, which exceeds the national average of 1026. Founded in 1871,
it is the fourth largest school system in Georgia with more than 10,000 full-time employees, including
more than 5,800 teachers and other certified personnel, who work in 90 schools and 14 administrative
and support buildings. More than 78,800 students attend classes in 52 elementary schools, 18 middle
schools, 12 high schools, two alternative middle/ high schools, two learning centers, and four charter
schools. Two elementary schools operate on year-round calendars. As the Atlanta metropolitan area has
grown, so has the Fulton County School System. Since 1997, Fulton has grown by more than 18,000
students and 24 schools, with three additional new schools replacing older facilities and renovations and/
or additions at more than 40 schools. The system’s ongoing building program is primarily funded by a one-
cent sales tax, which Fulton County voters overwhelmingly approved in 1997 and 2002.

Population
According to the U.S. Census 2000, there are approximately 34,854 residents in Alpharetta and current
estimates claim more than 50,000 residents in the city. In addition, the 2000 US Census reported
approximately 54% of Alpharetta’s households consist of married couples, with nearly half of that number
having related children living at home. Approximately 34% of Alpharetta’s population is under the age of
25, while slightly less than 6% was age 65 or older. The median age is 33 years. Furthermore, the average
household income in Alpharetta is $97,913, up from $50,559 in 1990. 63% of Alpharetta residents have
earned a college degree, and nearly 13% hold graduate degrees. More than 92% of Alpharetta residents
age 25 and older have at least a high school diploma.

History
Alpharetta and Milton County can trace their history to the resettlement of
the Cherokee Nation in the 1830s. Drawn by the promise of free lands a few
somewhat itinerant settlers moved into the area. They formed a tiny village
named New Prospect Camp Ground, which was made up of tents and a
log school. An arbor became a trading post, where Native Americans and
white settlers exchanged their goods. The surrounding countryside provided
excellent farming land especially for cotton. On December 11, 1858, the
town was chartered and became the county seat of Milton County. The town
was renamed Alpharetta from the Greek words “alpha” meaning first and “retta” meaning town. Many
early records are incomplete because as the left flank of the Union Army passed through Milton County,
the original courthouse was burned. In fairness, it was never established whether it was burned by the
Union Troops or by retreating Confederate soldiers. As the Civil War drew to a close, Alpharetta, along
with the rest of the South, suffered a period of economic hardship. However, Milton County fared better
                                                                                                                Section IV. Market Overview




than many areas, since the area was populated primarily by small farms and merchants. The collapse of
the “Plantation” economy had nowhere near the impact on the county as in other communities. In the
next decades, growth in Milton County was steady, but never spectacular. The area was hampered by
the lack of a railroad, around which most growth in those times was centered. When the depression of
the early 1930s devastated the nation’s economy, Milton County found itself near bankruptcy. In order
to save the area from disaster, it was decided that a merger of Milton County with Fulton County would
be to everyone’s advantage. It was because of this merger that the first roads began to be paved. Today,
Alpharetta is one of the fastest growing communities in the South. Its environment is considered ideal for
raising families and living a quality lifestyle free from the problems found in so many similar sized cities.
                                                     26
                                                                                                                              Bethany Pointe

Summary Demographic Profile




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                                                                                      27
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Employment Density




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5 Year Population Growth (Total%)




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                                                                                                                                                                                                                                      Bethany Pointe

Average Household Income




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                                                                                                                                                                                                                                      Bethany Pointe

Household Density




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                                                                                                                                                                                                                                      Bethany Pointe

Population Density




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                                                                                                                                                                                                                                      Bethany Pointe

Retail Expenditure




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                                                                                                                                                                     33
Additional Information may be obtained from:
CASSIDY TURLEY 171 17th Street NW, Suite 1400, Atlanta, GA 30363-1032

Mark Joines                     Drew Fleming                     Debbie Strom                     Morgan Stengel
Vice President, Principal       Vice President, Principal        Marketing Coordinator            Financial Analyst
404.682.3416                    404.682.3410                     404.682.3430                     404.682.3429
Mark.Joines@cassidyturley.com   Drew.Fleming@cassidyturley.com   Debbie.Strom@cassidyturley.com   Morgan.Stengel@cassidyturley.com

								
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