Target in Raleigh, NC

PLAY VIDEOURBAN TARGET | NEW FLEX-FORMAT PROTOTYPE |
PRIME UNIVERSITY LOCATION | OPENING NOVEMBER 2017
2512 HILLSBOROUGH STREET, RALEIGH, NC 27607
ACTUAL BUILDING RENDERING

LEAD BROKER
Kevin Boeve
Senior Vice President Investments
ONTARIO OFFICE
Tel: (909) 456-3450
kevin.boeve@marcusmillichap.com
CA License: 01247016
Joshua Rey
Associate
ONTARIO OFFICE
Tel: (909) 456-7015
joshua.rey@marcusmillichap.com
CA License: 1776485
Kyle Blatt
Associate
ONTARIO OFFICE
Tel: (909) 456-3475
kyle.blatt@marcusmillichap.com
Neil Naran
Associate
ONTARIO OFFICE
Tel: (909) 456-3476
neil.naran@marcusmillichap.com
Allen Smith
Broker of Record
NORTH CAROLINA OFFICE
Tel: (704) 831-4600
NC License: 127350
PRESENTED BY
ACTUAL BUILDING
OPENING NOV. 2017
Mixed-Use Retail and Residential Development

financial overview
combined annualized operating data
Term Annual Rent
Year 1 $557,706
Year 2 $560,044
Year 3 $596,581
Year 4 $599,487
Year 5 $602,478
Year 6 $635,245
Year 7 $638,770
Year8 $641,989
Year 9 $645,357
Year 10 $648,826
Year 11 $652,348
Year 12 $656,078
pricing
Property Address 2512 Hillsborough Street
Raleigh, NC 27607
Price $15,800,000
Price Per SF $641
Cap Rate 3.5%
Average Cap Rate 4.0%
Gross Leasable Area 24,778 SF
Year Built Completly Remodeled 2017
Parking Spaces Approximately 50 Spaces
Target: tenant summary
Tenant Trade Name Target
Lease Type Modified Net
Lease Term 12 Years
Rent Commencement Date Expected November 2017
Lease Expiration Date 2029
Options Eight, Five -Year Options
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID Y0080726
2
storefront: tenant summary
Annual Income $91,275
GLA 2,434 SF
Lease Type NNN
Increases 3% Increasees Annually
Term 10 Years
Options Two, Five-Year Options
Target’s annualized operating data
Term Annual Rent
Year 1 -2 $466,431
Year 3 - 5 $499,748
Year 6 - 12 $529,733
Option 1: 13 - 17 $561,516
Option 2: 18 - 22 $617,668
Option 3: 23 - 27 $679,435
Option 4: 28 - 32 $747,378
Option 5: 33 - 37 $822,116
Option 6: 38 - 42 $904,328
Option 7: 43 - 47 $994,760
Option 8: 48 - 52 $1,094,236
The seller has multiple lease offers pending for the storefront. The lease terms will be final-
ized prior to closing.

executive summary
ACTUAL BUILDING RENDERING

·· Generational Real Estate Investment
·· Stunning Architectural Design By Internationally Recognized Gensler Architects |
Completely Remodeled by Target for Their Urban “Flexible-Format” Concept With
Grocery and CVS | Opening November 2017
·· Corporate Lease | 12-Year Lease With Eight, Five-Year Options | Rental Increases
·· Hillsborough Street | Main Business and Cultural Thoroughfare Through Raleigh,
North Carolina | Serves as Center for Social Life Among North Carolina State
University (34,000 Students and 9,000 Faculty) and Meredith College (2,000+
Students)
·· Walking Distance from 20 Student Housing Facilities, Four On-Campus Apart-
ments, and 16 Learning and Living Villages
·· Zero Convenient Grocery Retail or Dry Goods Competition | Nearest Walmart is
Seven Miles Away
·· Strong Corporate Tenant | “A” Rating From the S&P | #38 on Forbes 500
·· 50 Exclusive Parking Spaces
·· 13 Percent Rental Increases Over Lease Term | Four Percent Average Return at
List Price
investment highlights
Marcus & Millichap is pleased to exclusively offer a rare, flexible-format, and
urban Target in Raleigh, North Carolina. The location is a completely remodeled
building, that is leased to Target Corporation on Hillsborough Street, the main
business and cultural thoroughfare in Raleigh, North Carolina.
The smaller version of its big-box store will sell fresh groceries, grab-and-go
items, dorm and apartment essentials, clothing, and electronics and include a
CVS Pharmacy. The carefully selected items will be suited mostly for the col-
lege students across the street attending North Carolina State University with
an enrollment of nearly 34,000 students and 9,000 faculty and administrative
staff members.
The Target is ideally positioned in an underserved metropolitan area that has
experienced population growth of 147 percent within one mile since 2000. The
property also benefits greatly from its proximity to multiple student housing: 20
resident halls, four on-campus apartments, and 16 learning and living villages.
This is a rare, generational asset leased to an “A” rated corporated tenant that
will continue to thrive as downtown Raleigh, North Carolina grows and matures
within the fastest growing metropolitan region in the Carolinas. For businesses,
residents and visitors alike, downtown is the urban center of the region, an in-
credible place to live, work and play.
investment overview
1 Mile 3 Miles 5 Miles
2016 Population 10,385 62,968 111,986
2016 Households 4,571 24,631 41,926
2016 Daytime Population 5,714 19,598 46,012
2016 Average Household Income $77,029 $74,796 $71,358
4
ACTUAL BUILDING
Exclusive Street Level Parking Entrance
2,434 Square Foot Restaurant

target overview
5
Founded 1902
Traded As NYSE: TGT
Headquarters Minneapolis, Minnesota
Website www.target.com
Target Corporation is the second-largest discount store retailer in
the United States, behind Walmart, and a component of the S&P
500 Index.
1,802 Locations $69.5 Billion
in 2016 Sales
#38 in Fortune 500“A” Rating

- 2 Miles Away -
- 2 Miles Away -
- 2 Miles Away -
- 2 Miles Away -
- 1.5 Miles Away -
7
1-Mile Radius
virtually zero nearby competition
Downtown Raleigh

Businesses and residents along Raleigh’s Hillsborough Street corridor paralleling the edge of North Carolina State University’s
main campus has been enduring near-constant construction for close to a decade on its streets, sidewalks and adjacent prop-
erties.
The development projects and improvements have so far added close to $300 million in new investments, according to the
Hillsborough Street Community Service Corporation And real estate sources say that several major projects on Hillsborough
Street are in the late planning stages, including City Centre, a mixed-use project comprised of twin 20 story towers containing
office, multifamily, hotel and street level retail along Dawson Street. A site review application filed in November requested ap-
proval for retail space, 176 hotel rooms and a parking lot in addition to office and residential space.
The city is also underway with its second phase of $17.8 million in streetscape improvements along Hillsborough Street that will
add bike lanes, on-street parking, roundabouts and other traffic control improvements between Friendly Drive and Rosemary
Street. The work is scheduled to be finished in fall 2017.
8
Berkshire
CAMERON VILLAGE
282 Units | 1-2 Bedroom
Starting at $1,070
401 Oberlin
APARTMENTS
Starting at $1,150
Stanhope
STUDENT APARTMENTS
Starting at $1,115
University
TOWERS
Starting at $1,150
Valentine
COMMONS
Starting at $655
Public Research University
Students: 34,000
Staff: 9,000
hillsborough street“$300 Million in New Investments
on Hillsborough Street”
Hillsborough Street - 20,000 Cars Per Day

Steady Growth of Downtown Employment
·· 45,000+ Workers Downtown - a 19 Percent Growth in The Past Seven Years |
Additional 11,500 jobs in Downtown by 2030
·· 1,500,000+ Square Feet of New Class A Office Space is Under Construction
Which Will Increase Office Employment Capacity by 6,000+ New Workers
·· 11 Percent Growth in Average Household Income for Downtown Residents Be-
tween the Ages of 25 - 54 From 2016 - 2021.
·· Downtown Population up 147 Percent Since 2000 | 16,550 People Live Within
One Mile of Downtown
·· Downtown Boasts 3,672 Residential Units Recently Delivered, Under Con-
struction, or Planned Which Will Provide Housing for up to 5,500 New Down-
town Residents
9
Downtown Raleigh lies at the heart of the Research Triangle, the fastest growing
metropolitan region in the Carolinas. For businesses, residents and visitors alike,
downtown is the urban center of the region, an incredible place to live, work and
play.
With a population of over 405,000, Raleigh is the second largest city in the Caroli-
nas. It is also the fastest growing major city in the state, adding more than 10,000
residents annually. The rapidly expanding Raleigh metro area, with 1,235,000 res-
idents, has more than doubled its population since 1970. Downtown Raleigh is
comprised of 110 blocks, while the city of Raleigh covers 126 square miles.
William Peace
UNIVERSITY
Students: 1,000+
Saint Mary’s
SCHOOL
Students: 275
RALEIGH
CONVENTION CENTER
RED HAT
AMPHITHEATER
Raleigh Amtrak Train Station
Annual Passengers: 161,400
Needham B.
BROUGHTON HIGH SCHOOL
Students: 2,170+
Meredith
COLLEGE
Students: 2,000+
Students: 34,000
Staff: 9,000
downtown raleigh
Hillsborough Street - 20,000 Cars Per Day

10
NC STATE UNIVERSITY
Essential Facts and Figures
·· 2,000-Acre Campus
·· 34,000 Students and 9,000 Faculty
·· 68 Percent of Students Live on Campus
·· Educating More North Carolinians Than Any Other University
·· $1.495 Billion Budget for Fiscal Year 2017
·· $998.6 Million Endowment
·· 20 Residence Halls
·· Four On-Campus Apartments
·· 16 Learning and Living Villages
Ranked Among the Best
·· #1 Best College For Your Money in North Carolina (Money)
·· #3 Veterinary Medicine Program Nationally (United States News
and World Report)
·· 11 Graduate Programs Among the Top 30 in Their Field Nation-
ally (United States News and World Report)
Rising Levels of Support
·· $224.8 Million in Gifts and New Commitments in FY17 -- the
Highest Total in North Carolina State History, and a 39 Percent
Increase Over the Previous Year
Residence Halls
On-Campus Apartments
North Carolina State University, a 2,090-acre campus, is a public research university located in Raleigh, North Carolina, United States. It is part of the University of North Carolina
system and is a land, sea, and space grant institution. The university forms one of the corners of the world-renowned Research Triangle together with Duke University in Durham
and The University of North Carolina at Chapel Hill.
The North Carolina General Assembly founded the North Carolina College of Agriculture and Mechanic Arts, now North Carolina State, on March 7, 1887, as a land-grant college.
Today, North Carolina State has an enrollment of nearly 34,000 students, making it the largest university in the Carolinas. North Carolina State has historical strengths in en-
gineering, statistics, agriculture, life sciences, textiles and design and now offers 106 bachelor’s degrees. The graduate school offers 104 master’s degrees, 61 doctoral degrees,
and a Doctor of Veterinary Medicine.
nc state university
2,000-Acre Campus

11
Union Station
Raleigh plans to finish construction on the Union Station transportation hub next fall. The $90 million project on Martin Street will feature intermodal connections for upgraded
rail and bus services.
The Dillon
The 17-story tower is already taking shape across from Union Station. The project is set to be complete in 2018. The $150 million complex of offices and apartments features
the outer brick walls of the old Dillon Supply Company warehouse, preserving a piece of the city’s industrial history.
Morgan Street Food Hall
The Morgan Street Food Hall and Market, opened Spring 2017, is a 22,000-square-foot space that formerly housed the bar Jillian’s. The food hall features 65 vendors.
Downtown Raleigh
downtown raleigh development
Housing Value
Home values have icreased 7% over the
past year and will rise 3.6% in 2018

Confidentiality Agreement
The information contained in the following offering memorandum is proprietary
and strictly confidential. It is intended to be reviewed only by the party receiving it
from Marcus & Millichap and it should not be made available to any other person or
entity without the written consent of Marcus & Millichap. By taking possession of and
reviewing the information contained herein the recipient agrees to hold and treat all
such information in the strictest confidence. The recipient further agrees that recipient
will not photocopy or duplicate any part of the offering memorandum. If you have no
interest in the subject property at this time, please return this offering memorandum to
Marcus & Millichap.
This offering memorandum has been prepared to provide summary, unverified financial
and physical 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. Marcus & Millichap 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, PCBs or asbestos, the compliance with local,
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 offering memorandum has been obtained from sources we believe to be reliable;
however, Marcus & Millichap has not verified, and will not verify, any of the information
contained herein, nor has Marcus & Millichap 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. Prospective buyers shall be
responsible for their costs and expenses of investigating the subject property.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE
MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
Net Leased Disclaimer
Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been
obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted
any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any
information provided. As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material infor-
mation before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus
& Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used
in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you
depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should
conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.
Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and
financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee
of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s project-
ed sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the
lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, en-
vironmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting
the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or
abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s
legal ability to make alternate use of the property.
By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost,
expense, or liability arising out of your investigation and/or purchase of this net leased property.

LEAD BROKER
Kevin Boeve
Senior Vice President Investments
ONTARIO OFFICE
Tel: (909) 456-3450
kevin.boeve@marcusmillichap.com
Joshua Rey
Associate
ONTARIO OFFICE
Tel: (909) 456-7015
joshua.rey@marcusmillichap.com
CA License: 1776485
Kyle Blatt
Associate
ONTARIO OFFICE
Tel: (909) 456-3475
kyle.blatt@marcusmillichap.com
Neil Naran
Associate
ONTARIO OFFICE
Tel: (909) 456-3476
neil.naran@marcusmillichap.com
Allen Smith
Broker of Record
NORTH CAROLINA OFFICE
Tel: (704) 831-4600
NC License: 127350
PRESENTED BY
Students: 34,000
Staff: 9,000
Downtown Raleigh, NC
Workers: 45,000+
Residents: 8,200

Target in Raleigh, NC

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