Investment Overview

CORPORATE NET LEASE TO TESLA, INC. (NASDAQ: TSLA) – The Offering features a 26,870 square-foot build to suit brick showroom and service center situated on 4.13-acres. The Tenant, Tesla, Inc., is subject to a new 12-year corporate lease with two, five-year renewal options. The lease features rental increases of 10 percent every five years in the base term and five percent per option, providing steady NOI growth and a hedge against inflation. Tesla, Inc. is publicly traded (NASDAQ: TSLA) and rated “BBB” by Standard & Poor’s. EXCEPTIONAL VISIBILITY & FRONTAGE ALONG INTERSTATE-75 – The Offering is prominently positioned with 425 feet of frontage along Interstate-75, a major north–south Interstate Highway that connects Chattanooga with Knoxville to the northeast and Atlanta to the south. Interstate-75 is heavily traveled at this juncture, providing excellent visibility to 104,423 vehicles per day, and access via Shallowford Road one-half-mile south. This visibility and frontage provide an immense amount of versatility for this site, and with the new population density in the submarket, this parcel could have a variety of reuses. CHATTANOOGA’S FIRST TELSA FACILITY – This is Chattanooga’s first service and sales location. It is the only Tesla showroom for more than 90 miles in every cardinal direction. There are three Tesla showrooms in the state of Tennessee, the closest of which is 92 miles northeast in Knoxville. The next closest locations are 93 miles southeast in Kennesaw, Georgia, 105 miles southeast in Roswell, Georgia, and 148 miles northwest in Nashville. This location will serve consumers and residents of Tennessee, Alabama and Georgia, with some customers driving an hour or more for this use. Nearby Interstates 75 and 24 allow for easy accessibility around the region traveling through Illinois, Kentucky, Tennessee, and Georgia. PART OF 22.5-ACRE RETAIL DEVELOPMENT – The Offering is situated upon a prominent 4.13-acre parcel just north of the intersection of Shallowford Road and Gunbarrel Road, in the heart of the Hamilton Place submarket. It is part of the larger 22.5-acre Village at Waterside, which includes the neighboring Publix-anchored shopping center, REI and Burlington Coat Factory. Developers are now adding the Populus Waterside to the rear of the Offering, a high-end garden style apartment community with 344 units slated to open in 2024. DENSE & AFFLUENT DEMOGRAPHIC PROFILE – Chattanooga is the seat of Hamilton County, and currently the fastest growing city in Tennessee. Positioned 13 miles east of downtown Chattanooga, this submarket is dense and rapidly growing. Since 2000, the three-mile and five-mile populations increased 32 percent and 25 percent respectively, and are both projected to increase five percent by 2027. The Tenant is supported by 42,895 residents within three-miles and more than 99,194 residents within five-miles. HIGHLY PROFITABLE RETAILER – Standard & Poor’s upgraded Tesla’s credit rating to “BBB” in October 2022, citing increased production and deliveries. Tesla, Inc. has quickly become one of the largest companies in the world. The Company reports 2022 revenue of $81.46 billion, a $27.6 billion increase over the previous year, and TTM revenue of $94.03 Billion. The Company has a Market Capitalization of $750.14 Billion, ranking #7 on the list of the largest companies in the world ranked by market capitalization.