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7-Eleven 1200 E Bay Drive Largo FL

7-Eleven 1200 E Bay Drive Largo FL

™ Largo | FL

OFFERING MEMORANDUM

7-ELEVEN 1200 E Bay Drive Largo, FL 33771

Representative Photo Table of Contents

TABLE OF CONTENTS

Representative Photo

03 EXECUTIVE OVERVIEW 04 FINANCIAL OVERVIEW

05 TENANT OVERVIEW 08 AREA OVERVIEW

LISTED BY ARON CLINE Chad Kurz SVP & National Director | Lic # 01911198 (CA) Senior Vice President & Senior Director Calvin Short DIRECT 949.432.4509 SVP & Senior Director | Lic # 01927216 (CA) MOBILE 818.632.0233 Josh Bishop Aron [email protected] VP & Director | Lic # 688810 (TX) LIC # 01904371 (CA)

BROKER OF RECORD KYLE MATTHEWS LIC # CQ1052263 (FL)

| 2 ExecutiveLargo |Overview FL

Investment Highlights

»» Newly Renovated NNN 7-Eleven – Brand new 15-year Lease– Minimal Landlord Responsibilities (Roof/Structure) – New 15-year roof warranty

»» 10% rental increases every 5 years – a strong hedge against inflation

»» Lease secured by one of the most dominant and recognizable Retail operators in the World – Investment grade credit tenant with an AA rating by Standard & Poor’s

»» 7-Eleven operates, franchises, and licenses more than 60,000 stores throughout 18 Countries. Over 10,700 are located in North America with heavy expansion plans to get to 20,000 stores by 2020.

»» High-Quality Construction – Property was built in 2018 to be up to date with 7-Eleven’s prototype

»» 7-Eleven is Ranked #1 on Entrepreneur magazine 2017 Top Global Franchises list

»» Densely Populated Area with Robust Demographics – The area has had approximately 10% population growth since 2010

»» Strong signalized corner with strong traffic counts (±58,000 VPD).

»» Average Household Income is $68,495 within a 5-mile radius and $62,000 within a 3-mile radius

»» Strong Traffic Counts – The subject property is located on E Bay Dr (686), a few blocks from Largo High School. The subject property is within close proximity to Interstate 19, which is one of the major roadways in the area to get to and from St. Petersburg and has a traffic count of approximately ±36,000 vehicles per day

»» The Subject Property is less than 20 miles from Tampa International Airport

3 | Financial7-Eleven Overview Investment Summary Annualized Operating Data

1200 E Bay Drive Monthly Rent Annual Rent Increases Cap Rate »» PROPERTY ADDRESS Largo, FL 33771 Year 1-5 $13,263 $159,150 10% 4.90% Year 6-10 $14,589 $175,065 10% 5.39% »» LIST PRICE $3,248,000 Year 11-15 $16,048 $192,572 10% 5.93% »» CAP RATE (YEAR 1) 4.90% Option 1 $17,652 $211,829 10% 6.52% Option 2 $19,418 $233,012 10% 7.17% ±4,288 SF »» TOTAL BUILDING AREA Option 3 $21,359 $256,313 10% 7.89% Option 4 $23,495 $281,944 10% 8.68% »» TOTAL LAND AREA ±1.49 AC (64,882 SF)

»» YEAR RENOVATED 2018 Tenant Summary

»» STATUS Under Construction Tenant Trade Name 7-Eleven Type of Ownership Fee Simple Lease Guarantor Corporate Guarantee Lease Type Modified NNN Roof and Structure Landlord Responsible (15-year warranty) Original Lease Term 15 Years Lease Commencement Date 6/19/2018 Rent Commencement Date 6/19/2018 Lease Expiration Date 6/30/2033 Term Remaining on Lease ±15 Years Increase 10% After 5 Years Options Four, 5-Year Options

| 4 Tenant LargoOverview | FL

Representative Photo

Tenant Overview »» Company Name »» Year Founded »» Headquarters #1 #3 Entrepreneur’s 7-Eleven 1927 Irving, TX Forbes’ Top 20 Franchises Magazine Top Global to Start »» Ownership »» Industry »» Website Franchises List Private Convenience Store www.7-eleven.com

7‑Eleven is the world’s largest convenience store chain operating, franchising and licensing more than 60,000 stores in 18 countries and is also one of the nation’s largest independent gasoline retailers. As the pioneer of the convenience store concept, 7-Eleven strives to meet the needs of TOP convenience-oriented guests by providing a broad selection of fresh, high-quality products and C-STORE services at everyday fair prices, speedy transactions and a clean, friendly shopping environment. Team Members Each store maintains a selection of approximately 2,500 different products and services tailored to meet the needs and preferences of its local clientele.

5 | Tenant7-Eleven Map

| 6 Location Map

State Map

Local Map Subject Property

Subject Property

7 | Area Overview7-Eleven

Demographics

POPULATION 1 - MILE 3 - MILE 5 - MILE

2023 Projection 17,408 130,101 280,772

2018 Estimate 16,334 122,754 264,963

2010 Census 14,932 116,384 249,388

Growth 2018-2023 6.57% 5.99% 5.97%

Growth 2010-2018 9.39% 5.47% 6.25% HOUSEHOLDS 1 - MILE 3 - MILE 5 - MILE

2023 Projection 8,538 59,297 123,523

2018 Estimate 8,275 57,677 120,112

2010 Census 7,484 53,842 111,400

Growth 2018-2023 3.17% 2.81% 2.84%

Growth 2010-2018 10.57% 7.12% 7.82%

INCOME 1 - MILE 3 - MILE 5 - MILE

2018 Est. Average $50,596 $62,362 $68,495 Household Income

| 8 Largo | FL

Largo, Conveniently located near beautiful beaches and surrounded by Pinellas County’s natural settings, Largo boasts being the fourth largest city in . Largo offers a great quality of life for residents with affordable living and its central location to just about everywhere. Valued green spaces, an engaged and active community along with safe and attractive streets have all contributed to Largo’s desirability. Largo’s central location, attractive community and superior parks and leisure services make Largo the easy and most natural choice for home, business and recreational needs.

Pinellas County

Attracted by the mild, sub-tropical climate and miles of white sand beaches, 946,848 people have made Pinellas County their Water Higher Education Sports home. With an average 360 days of sunshine, each year and »»143 marina & dock facilities »»University of South Florida »» (MLB) »»588 miles of coastline »»St. Petersburg College »» (NFL) beaches ranked among the best in the U.S., the county is also the »»35 miles of white sand »» »» (NHL) most popular tourist destination on the Gulf of Mexico, drawing beaches »» College »» (NASL) nearly six million tourists annually. Pinellas’ diverse communities of Law range in population from more than 252,000 in St. Petersburg to On Land & Minor slightly more than 100 in Belleair Shore, and nearly all capitalize »»48 courses Culture League Teams on living in a waterfront paradise. As an established county, »»623 courts »»15 performing arts facilities »» the significant infrastructure - including schools, utilities, and »»Pinellas Trail, 47 miles for »»20 theater companies »» roadways - is already in place. Pinellas is also well connected with walking & biking »»22 museums »» regional access provided via Interstate-275, two international »»250 parks »»Home of the Florida »» airports, and the largest port in Florida. »»600+ events annually Orchestra

9 | 7-Eleven

Economic Growth Pinellas lies at the center of the robust Tampa Bay market, which is expected to grow from its current population of 4 million to 6 million by 2030. The market’s significant economic clout is also evidenced by more than $70 billion in consumer spending and a labor force 2 million strong. The region is ranked number 20 in the U.S. for job growth and carries the country’s 13th largest media market.

Ideal Business Climate Anchored by the urban markets of Clearwater and St. Petersburg, Employment by Industry

Pinellas has the second largest base of manufacturing employment in Other Florida. Fortune 500 technology manufacturers Jabil Circuit and Tech Services Informaǎon Government 3% 2% Data are headquartered here. Pinellas has diverse, yet symbiotic, 5% Natural Resources, Mining Services industry clusters, including aviation/aerospace; defense/national & Construcǎon 24% security; medical technologies; business and financial services; and 5% information technology. An extensive network of suppliers, service Financial Acǎviǎes providers, and business associations support operations in these 7% sectors. Relocating businesses can move to Pinellas and expect to begin growing immediately. Pinellas encourages innovation, and with industry giants Home Shopping Network, Nielsen, ValPak and Catalina Manufacturing Marketing, it is rapidly becoming Florida’s hub for big data. Through 8% relationships with major universities and high-tech institutes, Pinellas has become a center for research and development in marine science, electronic instruments, medical devices, sensors, nanotechnology and health care. The county is home to numerous business accelerators, Leisure & Hospitality like the Tampa Bay Innovation Center, TEC Garage, the Gazelle Lab Trade, Transportaǎon 11% and Clearwater’s SPARK, which are committed to nurturing and & Uǎliǎes building new ventures. Notable Employers: Home Shopping Network, 18% Nielsen Media Research, Jabil Circuit, Raymond James Financial, Tech Data, Honeywell, Raytheon, Lockheed-Martin, ConMed Linvatec, Professional & TransAmerica and Bausch & Lomb. Business Services 17%

| 10 Largo Developments

West Florida Dance Center Highland Park Villas Two-story building with studios, Single story, twin villa-style Palm Crest Place lockers, and classrooms. townhomes with three bedrooms. Single-family subdivision with energy smart homes.

158 Ridge Apartments Two-story urban loƒ apartment community with one and two-bedroom units. Tri-City Plaza Redevelopment of outdoor shopping Subject Property West Bay Lofts center with Ross, Publix, and LA Fitness. Two-story and six-story buildings with residenǎal units above 1st and 2nd floor commercial spaces. Golf Lake Condominiums Four 30-unit condominium buildings with two and three-bedrooms, two-bathroom units. Barefoot Dream Complex Townhomes with two or three- The Gateway Building Ulmerton One Commerce industrial building with 32' bedroom units above garages. & Industrial Park clear height, dock-high loading Three building industrial complex with Charleston on 66th mix of commercial and warehouse units. One to three-bedroom luxury Beach and apartment community. Bay O ce One-story commericial office building.

Starkey Lakes South II Cousin Corporation Publix Supermarket & Starkey Lakes South III of American Demoliǎon and rebuild of grocery New Class A industrial buildings, 30' clear, Demoliǎon of old building and store with drive-thru pharmacy. ǎlt-wall, dock-high and rear-load. construcǎon of new warehouse facility.

11 | 7-Eleven

Tampa, Florida The City of Tampa is the largest city in Hillsborough County and is the county seat and the third most populous city in Florida. It is located on the west coast of Florida, approximately 200 miles northwest of , 180 southwest of Jacksonville, and 20 miles northeast of St. Petersburg. The population of the city represents approximately one-third of the total population of Hillsborough County. Tampa’s economy is founded on a diverse base that includes tourism, agriculture, construction, finance, healthcare, government, technology, and the port of Tampa. Tampa, Florida Tampa is part of the metropolitan area most The Tampa MSA is a magnet for young, educated people. Hillsborough County’s millennial commonly referred to as the “”. population is growing 13 percent faster than the nation as a whole, according to U.S. Census Tampa is part of the Tampa-St. Petersburg- data. Three public universities located within a short drive of Tampa Bay – University of Clearwater, Florida Metropolitan Statistical Area. South Florida, University of Central Florida, and – are home to more The four-county area is composed of roughly 2.9 than 150,000 students, over 60 percent of whom will stay in Florida upon graduation. Tampa million residents, making it the second largest Bay has more than 80 colleges, universities, and technical schools producing thousands of metropolitan statistical area in the state, and the graduates for area employers each year. Approximately 92,000 veterans are in the active fourth largest in the Southeastern , labor force as well, offering employers an invaluable source of uniquely trained personnel. behind Miami, Washington, D.C., and Atlanta. The Greater Tampa Bay area has over 4 million residents and generally includes the Tampa and The University of South Florida Muma College of Business boasts one of the nation’s Sarasota metro areas. best accounting schools, a top-ranked entrepreneurship center, a nationally-ranked MBA program, and a world-class research faculty. More than 2,200 students are enrolled in the In the next FIVE YEARS, Hillsborough Sykes College of Business at the , recognized by The Princeton Review County’s population is projected to grow as one of the top 300 business schools in the world for nine consecutive years. University of SIGNIFICANTLY FASTER than the state Tampa’s Sykes College of Business has also been ranked the 7th best for value for the price, of Florida beating out University of Notre Dame, Harvard University, and Duke University. Additionally, Hillsborough County Public Schools and Hillsborough Community College provide a variety By 2022, Hillsborough County’s population of training programs for area employers, developing customized curriculum to meet specific will be nearly 1.5 MILLION business needs.

| 12 Largo | FL

CULTURE EVENTS SPORTS Tampa is home to many different performing One of the most well-known events in Tampa Tampa has four professional sports teams: arts venues, theaters, and museums. Popular is the celebration of “Gasparilla,” a mock pirate Tampa Bay Buccaneers (NFL), Tampa Bay theaters include David A. Straz Jr. Center for invasion held every year since 1904. Residents Rays (MLB),Tampa Bay Lightning (NHL), and the Performing Arts, Tampa Theatre, and Gorilla often refer to the event as Tampa’s “Mardi the Tampa Bay Rowdies (AFL). Each team has Theatre. Some popular Tampa organizations Gras.” The invasion is led by the pirate ship, brought home victories and keep building a include the Florida Orchestra, Opera Tampa, and “Jose Gasparilla,” and is followed by numerous growing fan base, specifically in . For Stageworks Theatre. One of the most popular parades and city activities. This event brings in decades, has had spring museums in the area is the Museum of Science over 400,000 attendees and contributes tens of training facilities and baseball and Industry. It has several floors of exhibits millions of dollars to Tampa’s economy. teams in the area. The hold that relate to science, as well as, the only domed their spring training in Tampa, which brings out IMAX theater in Florida. a large crowd each year. 13 | 7-Eleven

Confidentiality Agreement & Disclaimer This Offering Memorandum contains select information pertaining to the business and affairs 7-Elevenof located at 1200 E Bay Drive, Largo, FL (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1 . The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. Representative Photo 7-ELEVEN 1200 E Bay Drive Largo, FL 33771

LISTED BY

ARON CLINE Chad Kurz SVP & National Director | Lic # 01911198 (CA) Senior Vice President & Senior Director Calvin Short DIRECT 949.432.4509 SVP & Senior Director | Lic # 01927216 (CA) MOBILE 818.632.0233 Josh Bishop Aron [email protected] VP & Director | Lic # 688810 (TX) LIC # 01904371 (CA)

BROKER OF RECORD KYLE MATTHEWS LIC # CQ1052263 (FL)

™

Offering Memorandum 15 |

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