Acquisition Opportunity of the Stefano Ricci Flagship Retail Store on a Long-Term Absolute Net Lease in Miami's Design Distric

ACQUISITION OPPORTUNITY OF THE STEFANO RICCI FLAGSHIP RETAIL STORE ON A LONG-TERM ABSOLUTE NET LEASE IN MIAMI’S DESIGN DISTRICT

Holliday Fenoglio Fowler, L.P. (“HFF”), as exclusive advisor, is pleased to present the opportunity to acquire the STEFANO RICCI global flagship store in Miami’s ultimate luxury shopping destination—The Design District. STEFANO RICCI chose Miami’s Design District as its third location in the US and one of only seven global flagship stores in the world to showcase its fine collection of Italian luxury goods. Founded in Florence Italy in 1972, STEFANO RICCI today is a thriving full-spectrum lifestyle-brand offering men’s apparel, homewares, and furnishings, within opulent boutiques across the world.

Situated at 120 NE 39th Street, STEFANO RICCI occupies a ±10,346 square foot, three-level mansion that is nestled between Tiffany and Ermenegildo Zegna along the Design District’s primary artery that includes a prestigious roster of the most discerning and fashion-forward tenancy available today. STEFANO RICCI has committed to a long-term absolute net lease with one 5-year renewal option and has invested significantly to renovate the existing structure to meet its discerningly high standards. This offering represents an exceptionally rare opportunity to acquire a long-term absolute net leased single tenant high street retail property with contractual annual rent escalations and limited landlord obligations at the absolute epicenter of Miami’s bourgeoning Design District.

PROPERTY SUMMARY Address 120 NE 39th Street, Miami, FL 33137

Year Built 1938

Building GLA ±10,346 SF

Site Size 4,700 SF

Tenant Stefano Ricci

% Leased 100% (Single-tenant)

Lease Type Absolute NNN (Tenant responsible for roof and structure)

Lease Term Remaining 10 years, one 5-year option

Tax Parcel 01-3124-030-0190

Assumable Financing Yes

Term of Financing 9 years remaining

Type of Financing CMBS ACQUISITION OPPORTUNITY OF THE STEFANO RICCI FLAGSHIP RETAIL STORE ON A LONG-TERM ABSOLUTE NET LEASE IN MIAMI’S DESIGN DISTRICT || One of only seven global retail flagship stores and the third US outlet for the premier luxury menswear brand STEFANO RICCI. The retailer generated sales of $150M Euros in 2014 out of its 35 global locations. KEY BISCAYNE MIAMI BEACH FISHER ISLAND || Long-term lease through February 2026 with 3% contractual increases and one 5-year renewal option at DOWNTOWN BRICKELL market rent. VENETIAN ISLANDS || Absolute net lease structure with tenant fully responsible for all operating expenses, real estate taxes, and structural repairs. EDGEWATER DISTRICT 395 Over 2,000 residential units planned/under 120 39 construction in Edgewater District 836 || Corporate guaranty of lease by S. Ricci America, Inc. DESIGN DISTRICT, MIAMI, FL WYNWOOD || Significant investment of capital by the tenant to fully renovate the existing structure and add additional GLA to building footprint. MIDTOWN || Substantially below market lease rate coupled with a sizeable capital investment from the tenant provides ample downside protection. Rents proximate to the Property range from +$300 PSF with all-in rates for multi- story buildings north of $200 PSF. At $116 PSF, the current rent is 42% below market levels. DESIGN DISTRICT 195 || Epicenter location within the Design District along prestigious 39th Street which is home to global flagship stores for Louis Vuitton, Hermes, Ermenegildo Zegna, Dior, Cariter, Tiffany, Versace, Harry Winston, Bvlgari, Emilio Pucci, Miu Miu, Tom Ford, Lanvin, Van Cleef & Arpels, Rolex and Givenchy to name a few. 95 || The property is straddled by Tiffany and Ermenegildo Zegna and across the street from Rolex, Longchamp, and Michael’s Geniune.

|| Assumable in-place debt with favorable terms and interest only payments through October 2025.

|| Long term appreciation and growth potential with the emergence and ascent of the Design District.

|| Favorable zoning designation (T6-12) provides long-term value creation potential through redevelopment of 112 the site up to 37,600 square feet. KEY BISCAYNE FISHER ISLAND MIAMI BEACH DOWNTOWN BRICKELL

VENETIAN ISLANDS

EDGEWATER DISTRICT 395 Over 2,000 residential units planned/under 120 39 construction in Edgewater District 836 DESIGN DISTRICT, MIAMI, FL WYNWOOD

MIDTOWN

DESIGN DISTRICT 195

112 150+ LUXURY STORES

14.6 MILLION YEARLY VISITORS TO MIAMI AND THE BEACHES

4,800 HOTEL ROOMS AND LUXURY CONDOMINIUMS

75.9% OF AREA VISITORS ARE TOURISTS

129,000 VEHICLES PER DAY ALONG I-95

2,500+ PARKING SPACES

$23.8 BILLION IN DIRECT EXPENDITURES FROM VISITORS IN 2014 THE MIAMI DESIGN DISTRICT

The 18-square block Miami Design District has emerged as one of the world’s top luxury retail destinations and is largely controlled by an institutional partnership with a limited number of properties owned by third parties. Even within this context, the STEFANO RICCI building is distinguished given its position at the absolute epicenter of this activity which has attracted such notable retailers as Louis Vuitton, Hermes, Cartier, Gucci, Dior, Armani, Burberry, Rolex, BVLGARI, Valentino, and Versace among many others. Rivaling other elite shopping districts worldwide such as Paris’ Champs-Elysees, Rome’s Via Condotti, Hong Kong’s Causeway Bay, London’s New Bond Street, Los Angeles’ Rodeo Drive, New York’s Fifth Avenue, and Chicago’s Michigan Avenue, the Design District delivers architecturally significant structures in a curated environment that blends art, design, fashion and food. Elastic People NE 41ST STREET NE 41ST STREET Design Within Reach Oggetti Maxalto Flexihouse Ornare Maxalto Art Design & Architecture Holmes Design41 DesignSenior High Mixed-Use The Rug Company Be Sweet Newman Uzca Garden under construction 1 Crescent Fashion & Luxury Egg & Dart ICA (Suite 200) Food & Entertainment Chrome Hearts Jonathan Adler Services Design &Other Architecture Senior High

Art Kiwi Flor Parking Berluti Theory Céline N FEDERAL HIGHWAY Rimowa Garden Arts Group Sartorial Drimmers Delpozo Luxe Luxe Appliances Anya Dileto Helmut Lang Dior Homme Oak Tavern Maison Thread Count Billionaire 27.7 Art

Moore Building Valet Service From $5 Christian Liaigre Cashmere Ann Sacks Ann Sacks Dolce Vita En Avance En Avance Montaigne Stone Gallery Amir Rug Ivette Arango Ivette Arango Christian Louboutin Stone Gallery Ponorovskaya Trading I on the District Interior Design Interior Design Costa Window Galilee Lighting

Gallery Advanced Transposition Paula Crown

NE 40TH STREET NE 40TH STREET Marquardt Kids by Roberto Behar & Rosario

Scotch & Soda Prada

Voltaire Roberto

Fine Art Fine Jalan Jalan Homme Zadig & Maison

Aesthetic Christian NE 39TH STREET Marni Louboutin Margiela Gallery Markowicz Coin Fendi Gallery Oggetti Granite Senior High Gavanna AM Profile Niba Rugs Niba Rugs E.G. Gody E.G. Etra Fine Art Etra Fine Mora Studio Seven Lounge Genuine Designers Tile Designers Tile Robert Curran Robert Pianeta Legno Pianeta Pianeta Legno Pianeta Michael’s Neoteric Luxury Transformations Crumb Design & Architecture Orange Cafe & Art Planned on Marc Newson Dash Fence Parchment Swampspace Boutique Obsolete Media Miami Law Hotel Site Loro Piana St Louis Maman

PASEO PONTI PASEO Marc (2nd Floor) Offices Crystal Fine Art Baltus of Ronald Jacobs (2nd Floor) Luminaire Lab Harry’s Adler Pizzeria Urban

Art Waterworks

Tod’s Janus Abitare Designs Minnotti Cartier et Cie NE 2ND AVENUE Niba Home Niba Home L’Excellence Longchamp Hermes NE 1ST AVENUE Rolex Zilli N MIAMI AVENUE Lanvin Omega Tom Ford Tom

NE 39TH STREET NE 39TH STREET

Orianne Collins Rick Jewellery Owens Spazio Di Casa Luxury Louis Vuitton DBC Tuttle Street

Coulisse BISCAYNE BOULEVARD & Co. Living Dior Buena VistaVista Luxury Harry Fitness Brownes Winston Zegna Kartell Kartell Fendi Casa DBC Fitness Armani

StationStation Living Giorgio Versace Loewe Miu Internum Miami Burberry Madinitaly Givenchy

Fendi Casa Emilio Pucci Max Mara Armani Casa Tiffany & Co. Tiffany Armani / Casa Orianne Collins Valentino Locust Projects U.S. Postal ServiceService Jungle 2 X 4

Van Cleef & IWC CeramicCeramic Bvlgari MRKT PM JBH Vacheron Holly Hunt MatrixMatrix Fun (Part 2) Arpels John Baldessar NE 38TH STREET Craig Robins Art Collection LQD (4th Floor) Communications Ligne Roset Mitchell Gold & Ella Palm Court Bob Williams barrow + dugow Tourbillon Vhernier John Bulthaup Active Le Corbusier Lobb Construction Xavier Veilhan Fly's Eye Dome PoltronaPoltrona FrauFrau Alex Turco Tuttle Street Cappellini Facade Sou Fujimoto Tag Heuer Minotti NE MIAMI COURT Citco City View Garage JLC ALS Palm Court N FEDERAL HIGHWAY Piaget

BE Miami Hublot Boffi Fun (Part 1) John Baldessari Panerai ECJ Luxe

Alchemist Garage Parmigiani Vortex 2 X 4 2nd Floor Palm Court NE 39TH STREET NE 38TH STREET NE 38TH STREET Louis VuittonDior Harry Zegna Winston Armani Versace Giorgio Valentino Miu

Shulman + Carousel Bisazza Emilio Pucci Associates Borinquen Studios Carousel 1 Clinic Studios The Stage Van Cleef Associates Shulman + & Arpels Netscape Bvlgari Konstantin Opera Gallery Grcic After Light 195 (123,500 vpd) Tourbillon Matthew Ritchie NE 2ND AVENUE Yvel Sevan Ulysse

Lladro 195 Abaco Nardin Bıçakçı Femme Panerai Coiffure

Luis Castillo Danny Finkle Nat Scarmazzi Kimberly Flores Eric Williams Managing Director Senior Managing Director Associate Director Director Analyst Director Analyst [email protected] [email protected] [email protected] [email protected] [email protected] hfflp.com (305) 448-5498 (305) 421-6544 (305) 421-6545 (305) 448-4778 (786) 532-2346 1450 Brickell Avenue Holliday Fenoglio Fowler, L.P. (“HFF”) a Florida licensed real estate broker. Suite 2950 ©2016 HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more Miami, Florida 33131 information please visit hfflp.com or follow HFF on Twitter @HFF. Telephone: (305) 448-1333 HFF has been engaged by the owner of the property [properties] to market it [them] for sale. Information concerning the property [properties] described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, Fax: (305) 448-9499 expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.