Cahaba Village Shopping Center

Cahaba is 100% leased to 19 tenants and is anchored by a 50,000 square foot, brand new Whole Foods Market (S&P: BB). The Whole Foods lease contains 8% rental rate increases every 5 years and runs through 2028, after which Whole Foods has four, 5-year extension options to renew. The lease also provides for Whole Foods to reimburse for certain operating expenses and real estate taxes, thus helping to stabilize the property’s overall net operating income. Whole Foods, the largest U.S. retailer of natural and organic foods with approximately 270 stores, operates the property as a grocery store and is already experiencing sales in excess of $500 per square foot. Please note that Whole Foods represents less than 40% of Cahaba’s rental revenue; the remaining rental revenue is derived from 18 other tenants.

Other tenants at Cahaba include FedEx Kinko’s, Wolf Camera, LensCrafters Inc., Massage Envy, Diamonds Direct and a free-standing Bryant Bank, among others. A full listing of Cahaba’s retail tenants and lease terms is attached for your review. In the event that any space in Cahaba requires releasing, a $450,000 reserve will be established at closing by the “Master Tenant” to fund new tenant improvements, leasing commissions, and related working capital.

Property

Set on 13.05 acres, Cahaba was newly constructed in 2006-2007 as a mixed-use community, offering high-end retail shopping and 22 luxury, residential condominiums (the condominiums are not included as part of the offering). The retail component of Cahaba includes a free-standing, 50,000 square foot building for Whole Foods, approximately 45,000 square feet of ground floor retail space occupied by 17 tenants and located below the residential condominiums, and an approximately 3,000 square foot outparcel that is improved with a 9,100 square foot building leased to Bryant Bank (per a ground lease). Cahaba provides 566 parking spaces, including spaces that are used exclusively by Whole Foods’ customers. According to a property condition report issued during our due diligence, this new development was found to be in very good condition and Syndicated does not anticipate any major capital requirements or expenditures in the near term. Nevertheless, the Master Tenant will establish a $110,000 working capital reserve at closing to offset some of the costs that may be associated with possible future requirements.

Location

Cahaba is located in the city of Mountain Brook, which is among the most affluent suburbs of Birmingham, AL. Birmingham has experienced significant economic growth over the past thirty years and now enjoys the lowest unemployment rate among all national metropolitan areas with more than 1 million persons. The city’s top employers include AT&T, Regions Bank, Honda, Mercedes-Benz, and the University of Alabama, which boasts an extensive and highly regarded system of hospitals and health research facilities. As the city’s largest employer, the University of Alabama provides Birmingham with a stable economic base. Mountain Brook, and the neighboring communities of Homewood and Vestavia, comprise Birmingham’s upscale suburbs and include retailers such as Saks Fifth Avenue, Nordstrom (under construction in nearby Hoover), Barnes & Noble, Macy’s, and Williams-Sonoma.

Situated along Highway 280, a major thoroughfare connecting the suburbs to downtown Birmingham, Cahaba benefits from high visibility as approximately 80,000 vehicles pass in front of the shopping center on a daily basis. Such visibility and access make Cahaba a desirable location for retailers and attracts a strong tenant roster.

Property and Asset Management

Bayer Properties, the developer and seller of Cahaba, will be retained as the center’s property manager and leasing agent pursuant to a management agreement with the Master Tenant. Located in Birmingham, Bayer Properties has been a prominent developer of retail properties for 25 years and currently manages and leases four million square feet, which includes 21 retail properties. Please see www.BayerProperties.com for more information about Bayer Properties. An affiliate of Syndicated will provide experienced asset management services for Cahaba investors, including preparation of year-end tax information. Please see www.SyndicatedEquities.com for more information about Syndicated.

Purchase of Cahaba and Offering of Interests

An affiliate of Syndicated is purchasing a 100% interest in Cahaba and is offering interests to investors at a total price of $33,061,245 inclusive of all closing costs and fees.

Financing for the property is currently being negotiated in the form of a non-recourse, $22,500,000 loan with a five-year term; $455,000 of the loan will be allocated to the Master Tenant (the Master Tenant will also be capitalized with approximately $105,000 of equity). Syndicated projects that the loan will have a fixed interest rate of approximately 6.375% and a principal pay-down (amortization) schedule of 28.5 years. Please note that this loan represents approximately a 66% loan-to-value, and investors will be allocated their pro rata share of the debt for tax purposes.

Investors will be offered up to $11,016,245 of equity for purchase. Principals of Syndicated will make equity investments of up to 2% of the available equity in Cahaba on a pari passu basis with all other investors. Syndicated’s principals’ investment will be subject to reduction based on the need to accommodate existing investors who wish to trade into this property.

Please note that this transaction will be structured to accommodate accredited investors only.

Mountain Brook (Birmingham), Alabama

• Brand New, Whole Foods Anchored, Multi-Tenant Shopping Center
• Approximately $170,000 Average Household Income in Mountain Brook
• 8.83% Projected Average Annual Return, Including Principal Paydown 6.00% Projected Average Annual Cash-On-Cash Return
• Suitable For Accredited Investors
• Accommodates 1031 Exchange Investors