SOUTHGATESOUTHGATELake Charles, Louisiana

OFFERING SUMMARY

INVESTMENT SUMMARYHolliday Fenoglio Fowler, L.P. (“HFF”) is pleased to exclusively present to qualified investors the opportunity to acquire Southgate Shopping Center (the “Property”), a 170,628 square-foot, grocery anchored center located in Lake Charles, Louisiana. The Property benefits from its location within an established retail node, in close proximity to Simon’s Prien Lake Mall. In addition to a strong location, the Property is anchored by the trade area’s only discount grocery offering.

PROPERTY OVERVIEWAddress: 2710 Ryan Street

Lake Charles, LA 70601

Occupancy: 89.0%Size (SF): 170,628Land Area: 14.36Year Built: 1958 / 2012Year 1 NOI: $1,581,000

TENANCY CHART

Major Tenants Size (SF) % of GLA Years of Occupancy* Remaining Lease Term*

Market Basket 31,119 18% 34.7 yrs. 4.3 yrs.

Office Depot 24,985 15% 24.5 yrs. 6.0 yrs.

Books-A-Million 21,310 12% 22.3 yrs. 4.7 yrs.

Avery James 11,308 7% 3.3 yrs. 6.9 yrs.

Dollar Tree 10,221 6% 3.3 yrs. 1.7 yrs.Total 98,943 16.6 yrs. 4.9 yrs.*As of January 2019

OFFERING SUMMARY2

INVESTMENT HIGHLIGHTS

Very Extremely FairlySomewhat Not at All

44%

20%

23%

12% 1%

SHOPPER SATISFACTION WITH INDEPENDENT GROCER

ANCHORED BY INDEPENDENT GROCERThe Property is anchored by Market Basket which generates daily traffic from a loyal customer base. The Louisiana grocery market is heavily supported by local independent grocer chains such as Market Basket. The Strength of Independent Grocers

» Independent grocers in the State of Louisiana generate over $1.6 Billion in sales, employ over 16,000 people and contribute over $340 million in taxes annually

» Convenience and price are the most important factors that determine shopper’s decisions about where to shop independent grocers consistently beat competition in these categories• Over 87% of independent grocer shoppers are satisfied

Market Basket – Louisiana’s Independent Grocer » The grocer was founded in 1961 and operated 34 locations throughout Louisiana and Texas

» The Property has been anchored by Market Basket for 35 years and they recently executed a 5-year renewal

» The tenant’s annual sales are 70% higher than the average independent Louisiana grocer and operates at a 3.15% health ratio

STABLE CASH FLOW WITH UPSIDE POTENTIALThe Property provides the next owner stable cash flow from a committed tenant base as well as upside potential through the lease up of vacant space in a strong leasing environment

Average tenant tenure of nearly 15 years

Recent 5-year renewals by Market Basket and Office Depot

Over 49,000 SF of leasing activity since 2017

9,305 SF available for lease up

35 Years at Property!

3OFFERING SUMMARY

SOUTHGATESOUTHGATE

210

Country Club at theGold Nugget

Course in Louisiana#2

WALNUT GROVE DEVELOPMENT

180 Homes 92,000 SF of Commercial Space

VILLAGE GREEN APARTMENTS198 Units

99.5% Occupancy

1.6 Miles7,638 Total Enrollment

SOUTHGATESOUTHGATE

13,381 VPD385

61,555 VPD

WITHIN A 3-MILE RADIUS - 2.1M SF Office Space,

92% occupied- 5,280 Apartment Units,

95% Occupied - 2,200 Hotel Rooms

Barbe Elementary School

4.0 MillionAnnual Visitors

3.8 MillionAnnual Visitors

STRATEGIC LOCATION » Mall Peripheral Location• Located next to Prien Lake Mall which spans over

783,000 square feet and includes over 80 retailers including Dillard’s, JCPenney, Dick’s Sporting Goods and Cinemark Theatre

» Established Retail Corridor• The Property’s submarket has experienced rental rate

growth of 66% since 2014 and has maintained over 92% over the past decade

89.0%90.0%91.0%92.0%93.0%94.0%95.0%96.0%97.0%98.0%

$0.00$2.00$4.00$6.00$8.00

$10.00$12.00$14.00$16.00

2014 2015 2016 2017 2018

Rental Rate Occupancy

Southgate Shopping Center Submarket

Lake Charles Unemployment Rate

8.0% 7.6%6.8%

6.4%5.9%

5.4%4.8%

3.9% 3.7%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

4.5%

6.3%

LAKE CHARLES ECONOMY » Lake Charles, the fastest-growing city in the state, is experiencing an economic boom and has a projected growth 5x greater than the overall state

» Chennault International Airport is undergoing a $250+ million expansion which is expected to create 1,500 jobs

» The Port of Lake Charles is the 12th largest seaport in the U.S. and has an estimated economic impact of over $264 billion

» Three casinos attract year-round visitors, employ over 4,000 people and generate over $600 million in revenues annually

OFFERING SUMMARY4

210

Country Club at theGold Nugget

Course in Louisiana#2

WALNUT GROVE DEVELOPMENT

180 Homes 92,000 SF of Commercial Space

VILLAGE GREEN APARTMENTS198 Units

99.5% Occupancy

1.6 Miles7,638 Total Enrollment

SOUTHGATESOUTHGATE

13,381 VPD385

61,555 VPD

WITHIN A 3-MILE RADIUS - 2.1M SF Office Space,

92% occupied- 5,280 Apartment Units,

95% Occupied - 2,200 Hotel Rooms

Barbe Elementary School

4.0 MillionAnnual Visitors

3.8 MillionAnnual Visitors

SOUTHGATE SOUTHGATESOUTHGATE

5OFFERING SUMMARY

AARON JOHNSON | Director | ajohnson@hfflp.com | 469.232.1987

RYAN SHORE | Managing Director | rshore@hfflp.com | 469.232.1919

ANDREW LEVY | Senior Managing Director | LA Lic# 0995686164MATT McCARNEY | Associate | mmccarney@hfflp.com | 469.232.1955

WESLEY GILMER | Analyst | wgilmer@hfflp.com | 469.232.1932

ADDITIONAL INFORMATIONIf you have any questions or require additional information, please contact:

HFF has been engaged by the owner of the property [properties] to market it [them] for sale. Information concerning the property [properties] described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.

2323 Victory AvenueSuite 1200

Dallas, TX 75219 214-265-0880 214-265-9564www.hfflp.com

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Frasch Park

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Sam Houston Jones State Park

LAKE CHARLES

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Prien Lake

Moss Lake

Lake Charles

HERE, Esri

0 1.6 km

0 1 mi1:72,200

SOUTHGATESOUTHGATE

For information regarding debt structures on the property, please contact:

DJ MEAGHER | Director | dmeagher@hfflp.com | 469.221.7782

EXISTING DEBT SUMMARY (AS OF APRIL 2017)

LENDER Wells Fargo Bank

ORIGINATION DATE January 16, 2015

MATURITY DATE February 6, 2025

BALANCES

Principal Balance $10,306,678

TERM 120 months

INTEREST RATE 4.56%

MONTHLY PAYMENT $53,066.69

*Free Window Date is 3 months prior

Occupied Static VacancyVacant