David selberg, Shark Tank

1. Shark Tank
Capital Connections May 9, 2012

2. Shark Tank
Executive Summary Summary Financials
Property Type: Premium Outlet Center Sources of Funds
Amount Per SF
GLA: 280,000 SF Debt Financing $36,900,000 $131.79
Investor $14,220,000 $50.79
Location: Southaven, MS
Metro Memphis, TN Sponsor $1,580,000 $5.64
Total Sources $52,700,000 $188.21
Sponsorship: Poag Lifestyle Centers & Simkin Group
Key Considerations: Uses of Funds
Land Acquisition $8,300,000 $29.64
• Outlet Centers are currently the favored retail Construction Costs $32,000,000 $114.29
development Soft/Finance Costs $12,400,000 $44.29
• Cap rates are currently 50bps premium to other Total Uses $52,700,000 $188.21
retail
• Underserved Market/Minimal competition Stabilized NOI $ 5,700,000
• High demand from tenants
• Traffic Count – 57,000 daily on I‐55 Stabilized Value (7 cap) $81,400,000
• Regional Draw Stabilized Return on Cost: 10.7%
• Memphis Metro Population – 1.3 million
• 2.0 million within 75 miles radius Stabilized Debt Yield 15.5%
Equity Venture IRR 20.0%+
Capital Connections May 9, 2012

3. Shark Tank
SPONSOR OVERVIEW
Poag Lifestyle Centers LLC
Headquartered in Memphis, TN, Poag
Lifestyle Centers has been committed to
developing, leasing, and managing some
of the country’s finest Lifestyle Centers.
Poag and its founders have developed 13 Lifestyle Centers
representing over 4,000,000 square foot of space. Today
Poag manages 6 Lifestyle Centers encompassing over
3,000,000 square feet.
Poag’s success with the lifestyle tenants translates well to
outlet centers since some of the tenants found in outlet
centers are the same as in Lifestyle Centers, and Poag has
teamed up with The Simkin Group because of their long
term relationships with the more traditional outlet tenants.
In addition, the style of outlet design and construction is
moving more toward the style of Lifestyle Centers.
Simkin Group
• 27 Years experience with developing, leasing, and
managing outlet centers.
• Ron Simkin spent most of his career with Belz
Enterprises, which is considered the founder of the
Outlet Factory Centers, where he was the Director of the
Factory Outlet Division.
Capital Connections May 9, 2012

4. Shark Tank
The Opportunity
• Unleveraged operating return of
almost 11%
• Equity IRR of more than 20%
• Capitalize on trend toward outlet
retail
• Successful opening in
Oklahoma City (Sales of
almost $400 psf)
• Favorable Cap Rates
• Sponsor Strength
• Poag brings years of
success in retail
development
• Simkin Group brings years
of success in outlet
development
• Strong Growth Area
• Minimal Competition
Capital Connections May 9, 2012

5. Shark Tank
Project Overview
• New Outlet Development
o 280,000 square foot
development
o 43 Acres
o 6 pads
• Strong Public/Private partnership
• Good Location
o I‐55 and Church Road
o 57,000 cars daily on I‐55
o 20,000 cars daily on
Church Road
o No Outlet Competition
• Strong Demographics
• 2 million people within 75
miles
• Southaven has doubled in
size since 2000
• Strong Tenant interest
• 80,000 SF in LOI’s under
negotiation
• 60% leased prior to
construction start
Capital Connections May 9, 2012

6. Shark Tank
Location & Market Overview
• Ideally located on I‐55 in Southaven, MS
• 4.5 miles from Memphis, TN
• Memphis Metro areas only outlet center
• Adjacent to Olive Branch, MS which was
the fastest growing city in the country in
2011.
• Strong Public/Private partnership with
City of Southaven and State of Mississippi
•Located in strong retail hub. Wal‐Mart,
Home Depot, and Lowes have all opened
up 2nd stores with no meaningful reduction
in sales at the original store
5 Mile 10 Mile 75 Mile
Population 79,333 264,283 1,950,000
Households 30,494 98,225 745,500
Avg. Income 61,500 56,000 55,300 *Source: CBRE Indianapolis 2011 Market Update
Capital Connections May 9, 2012

7. Shark Tank
Metro Memphis versus Oklahoma City
Metro Oklahoma
Memphis City
35 Mile Ring
Population 1,237,000 1,175,000
Households 472,800 471,100
Avg. Income 60,900 58,600
75 Mile Ring
Population 1,950,000 1,740,000
Households 745,500 688,500
Avg. Income 55,300 55,300
**OKC sales are almost $400 psf. At that level, Southaven will generate sales of
over $110,000,000**
*Source: CBRE Indianapolis 2011 Market Update
Capital Connections May 9, 2012

8. Shark Tank
Tenant Profile
• Inline space
• Better brands from the
traditional retail concepts
• Brands you would typically
find in department stores
• Anchors
• National Fashion
Department Stores
• National Sporting Goods
• Unique Restaurants
• 80,000 sf of LOIs currently under
negotiation
• Targeting executed leases for 60%
of the space prior to construction
start
• Memphis is a major distribution
hub which is opening the door to
unique tenants that do not
typically have outlet stores.
Capital Connections May 9, 2012

9. Shark Tank
COMPETITION
Shopping Centers/Malls
• Southaven Towne Center is 1.8
miles away and contains a
Dillard's, Gordmans, JC Penney,
Ashley Furniture and Books‐A‐
Million. Sales of $355 psf
• Closest Memphis Mall is 24 miles
away
• Dominant Memphis Mall is 33
miles away
Outlet Centers
• Casino Factory Outlets is 22 miles
away in Tunica, MS
• Poor location
• Undersized
• Lack of key tenants
• Next closest outlet mall is 238
miles away in Birmingham, AL
Capital Connections May 9, 2012

10. Shark Tank
May 9, 2012

11. Shark Tank
May 9, 2012