A division of NAI Maestas and Ward

Starbucks Drive -Thru Anchored NNN Investment2722 Sudderth Dr. Ruidoso, NM

Offering Memorandum

Rich Diller, CCIM, SIORcell 505 249 7007

richd@iparealty.com

Cole Flanagan, CPA cell 505 235 7585 cole@iparealty.com

Offering Memorandum | 2A division of NAI Maestas and Ward

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it form NAI Maestas & Ward and should not be made available to any other person or entity without the written consent of NAI Maestas & Ward. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation.NAI Maestas & Ward has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, NAI Maestas & Ward has not verified, and will not verify, any of the information contained herein, nor has NAI Maestas & Ward conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Property seller is a licensed New Mexico broker and is the qualifying broker for NAI Maestas and Ward; he is selling this property for his own account.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT A NAI MAESTAS & WARD ADVISOR FOR MORE DETAILS.

Confidential

Offering Memorandum | 3A division of NAI Maestas and Ward

Investment Property Advisors is pleased to offer for sale the only Starbucks corporate-leased drive-thru location in Ruidoso, NM. The development is a three tenant retail center servicing both the surrounding neighborhoods, businesses, and tourists, as well as the high traffic that travels by the location each day. The property is located in the heart of Ruidoso, NM, where the main east/west and north/south thoroughfares of Sudderth and Mechem intersect.

Starbucks occupies approximately 2,000 square feet of the approximately 4,993 square foot retail building, and Starbucks provides for about 79% of the annual base rent for the center. Farm Bureau Financial and Mc E’s Vapor occupy the remaining 2,993 square feet. The building sits on approximately 0.813 acres of land, and the tenants are all on NNN leases, with minimal landlord responsibilities.

The location benefits from visibility to high traffic counts and direct access on a major east/west roadway through the main drag of Ruidoso. The property is centrally located, with quick access to gaming casinos, Ruidoso Downs Race Track, golf courses, horseback riding, Ski Apache area and many more outdoor attractions. The immediate area is the main retail corridor for Ruidoso and is right in the middle of all the tourist activity and local businesses.

� NNN leases with minimal landlord responsibilities

� Starbucks 10 year base lease term (over 2 years remaining), with 4 - 5-year renewal options

� Rental increases of 10% every 5 years in initial term and options

� Strategically located in the heart of Ruidoso, NM, directly on the east/west thoroughfare of Sudderth

� Well-Established Starbucks location with Drive-thru and the only Starbucks in Ruidoso, NM

� Sudderth & Mechem is the busiest intersection in Ruidoso, NM where the main east/west and north/south thoroughfares collide

� Strong retail corridor

Representative Photo

Offering SummaryPurchase Price $1,395,000Net Operating Income $104,612Cap Rate 7.50%Lease Types NNN

Investment Highlights

Offering Memorandum | 4A division of NAI Maestas and Ward

Operating Summary

2014 Amount

Starbucks $93,500

Farm Bureau Financial $12,000

Mc E’s Vapor $13,100

Total Rental Income $118,600

Expense Reimbursements $22,684

Total Gross Income $141,284

Vacancy ( 7% ) ( $9,890 )

Total Adjusted Income $131,394

CAM $20,071

Property Tax $4,557

Insurance $2,154

Total Operating Expenses $26,782

Net Operating Income $104,612

Offering Memorandum | 6A division of NAI Maestas and Ward

Ruidoso, New Mexico is high in the Rocky Mountains of southeastern New Mexico. Towering above the Village of Ruidoso is Sierra Blanca at 11,981 feet above sea level and the New Mexico ski resort, Ski Apache. Sierra Blanca Peak is the highest point in southern New Mexico. Ruidoso weather is mild and great for enjoying the outdoors and the natural wonders that abound in Ruidoso, Lincoln County and the Lincoln National Forest. Located less than 3 hours from Albuquerque, NM; 2 hours from El Paso, TX; and 4 hours from Lubbock, TX; Ruidoso is the ultimate playground of the Southwest.

The Ruidoso Downs Race Track is home to the richest quarter horse race in the world; the All American Futurity. Ski Apache is the perfect ski resort for both beginning and advanced skiers and snowboarders. The Ruidoso area claims two of New Mexico’s finest casinos; Inn of the Mountain Gods and Billy the Kid Casino. The Spencer Theater for the Performing Arts is a world class performance hall. There is live music at many Ruidoso venues including the renowned country western bar Win Place and Show, outdoor cafes and many Ruidoso restaurants. For the active vacation, Ruidoso offers some of the best outdoor recreation around including top rated golf courses, horseback riding, Golden Aspen Motorcycle Rally, Aspencash Motorcycle

Rally, high altitude bicycling, camping , hiking, skiing , golf, tennis, art galleries , museums and shopping aplenty. With all Ruidoso has to offer, the top rated activity in Ruidoso remains relaxing and enjoying the magnificent mountain views and the cool pines.

Ruidoso lodging is unique to other destinations. Known for quaint cabins along the Rio Ruidoso River, lodging includes cabins , resorts, hotels , motels, boutique hotels , bed and breakfasts, RV parks, campgrounds, condos and nightly rentals of private homes . Many lodging establishments are pet friendly . Ruidoso dining and restaurants offer a full range of options to fit any budget or taste.

If you decide to stay or make Southeastern New Mexico your second home, Ruidoso real estate has proven to be a popular investment.

Ruidoso Overview

Offering Memorandum | 7A division of NAI Maestas and Ward

Ruidoso’s Expanding Economy

Ruidoso has a vibrant economy specializing primarily in real estate, entertainment and tourism.

Ruidoso has been experiencing explosive growth. Currently, Ruidoso is the 3rd fastest growing city in New Mexico. With approximately 8,690 full-time residents, Ruidoso enjoys a summer time boost of over 40,000 part-time visitors.

Real Estate is picking up in the area, with the new Kokopelli subdivision being built as well as a multi-family housing development in the works. Ruidoso is looking to the State to designate the Community as an “Arts & Cultural District” that is sure to boost out-of-area visitors.

According to the Ruidoso News, business at Sierra Blanca Regional Airport is growing. With nearly a "15% increase in operations" and a "31% increase in jet fuel sales" compared to the previous year, the local attractions are bringing in the tourists.

The busiest weeks for tourism are Labor Day, July 4th, Memorial Day, Christmas, Thanksgiving, and Easter. During these holidays, Ruidoso is typically at capacity for lodging because of the influx of visitors. Ruidoso has events going on all year to ensure tourists never run out of things to experience.

Offering Memorandum | 8A division of NAI Maestas and Ward

PropertyLocation

Sudderth Dr.

Mechem Dr.

15,062

11,

625

ThriftwaySupermarket

GazeboShopping Center

Grace O’Malley’sIrish Pub

Shrimpy’sRestaurant

Cafe Rio

Cree MeadowsGolf Course

S I T E

Offering Memorandum | 9A division of NAI Maestas and Ward

Custom Map

October 21, 2014

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