™ 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, Florida Conveniently located near beautiful beaches and surrounded by Pinellas County’s natural settings, Largo boasts being the fourth largest city in Tampa Bay. 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 » Tampa Bay Rays (MLB) » 588 miles of coastline » St. Petersburg College » Tampa Bay Buccaneers (NFL) beaches ranked among the best in the U.S., the county is also the » 35 miles of white sand » Eckerd College » Tampa Bay Lightning (NHL) most popular tourist destination on the Gulf of Mexico, drawing beaches » Stetson University College » Tampa Bay Rowdies (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 Spring Training & Minor slightly more than 100 in Belleair Shore, and nearly all capitalize » 48 golf courses Culture League Teams on living in a waterfront paradise. As an established county, » 623 tennis courts » 15 performing arts facilities » Philadelphia Phillies the significant infrastructure - including schools, utilities, and » Pinellas Trail, 47 miles for » 20 theater companies » Toronto Blue Jays roadways - is already in place. Pinellas is also well connected with walking & biking » 22 museums » Clearwater Threshers regional access provided via Interstate-275, two international » 250 parks » Home of the Florida » Dunedin Blue Jays 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 lo 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 Class A 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.