Offering Memorandum

Pensacola, Florida

Subject Property

10-Year Lease with Approx. 3% Annual Rent Increases Outparcel to Cordova Mall, Local Economy is Driven by Eight Years Remaining on Throughout Base Term and the Largest Shopping Center Military, Defense Industry, Base Term Options on the NW Gulf Coast of FL Tourism & Healthcare CONFIDENTIALITY AND DISCLAIMER NET LEASED DISCLAIMER The information contained in the following Marketing Brochure is proprietary and Marcus & Millichap hereby advises all prospective purchasers of Net Leased property strictly confidential. It is intended to be reviewed only by the party receiving it from as follows: Marcus & Millichap Real Estate Investment Services of Florida, Inc. and should not be made available to any other person or entity without the written consent of Marcus & The information contained in this Marketing Brochure has been obtained from sources Millichap. This Marketing Brochure has been prepared to provide summary, unverified we believe to be reliable. However, Marcus & Millichap has not and will not verify any information to prospective purchasers, and to establish only a preliminary level of of this information, nor has Marcus & Millichap conducted any investigation regarding interest in the subject property. The information contained herein is not a substitute these matters. Marcus & Millichap makes no guarantee, warranty or representation for a thorough due diligence investigation. Marcus & Millichap has not made any whatsoever about the accuracy or completeness of any information provided. 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 As the Buyer of a net leased property, it is the Buyer’s responsibility to independently property, the size and square footage of the property and improvements, the presence confirm the accuracy and completeness of all material information before completing or absence of contaminating substances, PCB’s or asbestos, the compliance with any purchase. This Marketing Brochure is not a substitute for your thorough due State and Federal regulations, the physical condition of the improvements thereon, diligence investigation of this investment opportunity. Marcus & Millichap expressly or the financial condition or business prospects of any tenant, or any tenant’s plans or denies any obligation to conduct a due diligence examination of this Property for Buyer. intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; Any projections, opinions, assumptions or estimates used in this Marketing Brochure however, Marcus & Millichap has not verified, and will not verify, any of the information are for example only and do not represent the current or future performance of this contained herein, nor has Marcus & Millichap conducted any investigation regarding property. The value of a net leased property to you depends on factors that should be these matters and makes no warranty or representation whatsoever regarding the evaluated by you and your tax, financial and legal advisors. accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. 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 NON-ENDORSEMENT NOTICE Buyer’s legal and financial advisors must request and carefully review all legal Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial and financial documents related to the property and tenant. While the tenant’s tenant or lessee identified in this marketing package. The presence of any corporation’s past performance at this or other locations is an important consideration, it is not a logo or name is not intended to indicate or imply affiliation with, or sponsorship or guarantee of future success.Similarly, the lease rate for some properties, including endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or newly-constructed facilities or newly-acquired locations, may be set based on a any agent, product, service, or commercial listing of Marcus & Millichap, and is solely tenant’s projected sales with little or no record of actual performance, or comparable included for the purpose of providing tenant lessee information about this listing to rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail prospective customers. 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, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT the intrinsic value of the property and the value of any long-term lease, including YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. 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. FINANCIAL OVERVIEW 3% Annual Rent Increases Rent Schedule Overview Base Term Annual Rent PSF Cap Rate 5048 Bayou Boulevard, Pensacola, FL 32503 4/1/2021-3/31/2022: $212,180 $53.05 7.25% Price: $2,927,000 4/1/2022-3/31/2023: $218,545 $54.64 7.47% Cap Rate: 7.25% 4/1/2023-3/31/2024: $225,101 $56.28 7.69% Rentable Square Feet: 4,000 4/1/2024-3/31/2025: $231,855 $57.96 7.92% Annual Rent: $212,180 4/1/2025-3/31/2026: $238,810 $59.70 8.16% Price PSF: $731.75 4/1/2026-3/31/2027: $245,975 $61.49 8.40% Land Area: 0.36 Acres 4/1/2027-3/31/2028: $253,354 $63.34 8.66% Year Built: 2014 4/1/2028-3/31/2029: $260,955 $65.24 8.92%

Lease Summary Option Periods Annual Rent PSF Cap Rate Tenant: MedMen Option 1, Year 1: $268,783 $67.20 9.18% Website: www.MedMen.com Option 1, Year 2: $276,847 $69.21 9.46% Lease Guarantor: MM Enterprises USA, LLC Option 1, Year 3: $285,152 $71.29 9.74% Lease Type: Modified NNN Option 1, Year 4: $293,707 $73.43 10.03% Option Periods: 2, 5 Year Options Option 1, Year 5: $302,518 $75.63 10.34% Rent Increases: 3% Annually Option 2, Year 1: $311,594 $77.90 10.65% Roof & Structure: Landlord* Option 2, Year 2: $320,941 $80.24 10.96% Commencement: 4/16/2019 Option 2, Year 3: $330,569 $82.64 11.29% Lease Expiration: 3/31/2029 Option 2, Year 4: $340,487 $85.12 11.63% *Roof is under 15-year warranty that commenced on or about August 12, 2014. Option 2, Year 5: $350,702 $87.68 11.98%

INVESTMENT HIGHLIGHTS

Long-Term Lease with Annual Rent Increases Major Tourist Destination | Emerald Coast • Three Percent Annual Rent Increases Throughout Base Term and • The Local Economy is Driven by the Military, the Defense Industry, Option Periods Tourism and Healthcare • 10-Year Lease with Approx. Eight Years Remaining on Base Term • Tourism and Hospitality Industry Comprises the Greatest Portion • Two, Five-Year Tenant Renewal Options of the Overall Workforce • Health Practitioners Comprise a Large Portion of The Local Workforce Surrounding Retail & Points of Interest at Area Medical Facilities that Include Sacred Heart Hospital and • Located on Bayou Boulevard with More Than 25,500 Vehicles Daily Baptist Hospital • Population Over 140,000 Within Five Miles of Subject Property • Four Miles from West Florida Hospital with More Than 390 Beds • Surrounding National Retailers Include Lowe’s, Sam’s Club, Home • Seven Miles from the University of West Florida with a Total Depot, Target, Home Goods, TJ Maxx, Planet Fitness, Michael’s, Enrollment of 9,531 Students Rooms To Go, Publix, Winn Dixie, The Fresh Market, Big Lots, Bank • 11 Miles from Pensacola Beach of America, T-Mobile, Outback Steakhouse, Ale House, Chili’s Grill • The U.S. Navy has a large presence in the Pensacola Metro, Driving & Bar, Longhorn Steakhouse, Olive Garden, Chick-fil-A, McDonald’s the Local Economy Panera Bread, Wendy’s, Dunkin’, Starbucks and Many More » 11 Miles from Naval Air Station Pensacola – Employs More Than • Outparcel to Cordova Mall, Which is the Largest Shopping Center 16,000 Military and 7,400 Civilian Personnel on the Northwest Gulf Coast Of Florida and Owned by Simon » Property Group and Anchored by Dillard’s, Belk, Dick’s Sporting 13 Miles from Forrest Sherman Field Airport, a Military Airport Goods, Best Buy, Bed, Bath and Beyond Located on NAS Pensacola » 51 Miles from Eglin Air Force Base, the Largest Air Force Base in • 0.5 Mile from Sacred Heart Hospital – a 566-bed Acute-Care Facility, the World That Comprises Over 720 Square Miles has Approx. Also Home to The Studer Family Children’s Hospital, Northwest 20,000 Personnel Florida’s Only Hospital Dedicated to the Care of Children with Acute Injuries or Illnesses » Several Aerospace and Defense Contractors in the Region to Support Air Force Operations • One Mile from Pensacola International Airport » Thousands of Jobs Have Been Created by Companies Such • Within Walking Distance from Pensacola State College with an as Boeing, Lockheed Martin, BAE Systems, Reliance Test and Enrollment of 9,906 Students and 320 Faculty and Staff Technology and L-3 Crestview Aerospace

TENANT SUMMARY Representative Photos

edMen was founded with the vision to de-stigmatize cannabis by offering an accessible and welcoming shopping environment Mbecause a world where cannabis is legal and regulated is safer, healthier and happier. MedMen offers a robust selection of high-quality products, including MedMen-owned brands LuxLyte and MedMen Red through its premium retail stores, proprietary delivery service, as well as curbside and in-store pick up.

As one of the premium cannabis retailer of the , MedMen has been leading with new developments for over a decade. Their Click Here for MedMen Corporate Presentation team of product experts offer an unparalleled shopping experience at all of their more than 25 stores across six states — , Nevada, , , New York, and Florida. www.MedMen.com

IN THE NEWS

Florida medical marijuana business remains on fire Published FRIDAY, MAR. 19, 2021

Other medical cannabis growth points include: • Florida registered 170,000 new medical marijuana patients in 2020; • As of early 2021, the state had some 480,000 medical marijuana patients; • The industry added 14,891 jobs in 2020 and now supports 31,444 total In a bevy of metrics, Florida’s medical marijuana industry continues to grow jobs; unabated. • The state processed $1.2 billion in medical cannabis sales in 2020, and statewide annual sales are projected to top $6 billion by 2030; The latest news: Florida now sells more cannabis products than any other state except California and Colorado, according to a new report from marijuana • There are now 2,644 licensed physicians in Florida who can write medical industry research firm Leafly and Whitney Economics. And that’s only for cannabis prescriptions, according to the state Office of Medical Marijuana medical patients. “With a state population of nearly 22 million, Florida could Use. Those products can be purchased at 313 dispensaries. reasonably double its current total of cannabis jobs if it chose to legalize for all adults,” the report states. As it is, adds the report, “there are now more Click Here for Full Article cannabis workers than plumbers” in Florida. IN THE NEWS Multiple Military Bases Located Nearby MedMen Senators Vote To Expand Medical Marijuana Access For Military Veterans In Key Committee “We have now 36 states that have medical cannabis, and our veterans want to know from their VA doctor what their thoughts are on the pros and cons Published 6 days ago on August 4, 2021 or appropriate role or challenges of this particular strategy for treating a variety of issues, including PTSD,” Merkley said. “I think it’s really important that we not force our veterans to be unable to discuss this issue with their doctors.”

Here’s the text of the amendment, which is now part of a bill to fund the VA for Fiscal Year 2022:

SEC. ___ None of the funds appropriated or otherwise made available to the Department of Veterans Affairs in this Act may be used in a manner that would— (1) interfere with the ability of a veteran to participate in a medicinal marijuana program approved by a State; (2) deny any services from the Department to a veteran who is participating in such a program; or (3) limit or interfere with the ability of a health care provider of the A powerful Senate committee on Wednesday approved an amendment that’s Department to make appropriate recommendations, fill out forms, or meant to promote military veterans’ access to medical marijuana by allowing take steps to comply with such a program. doctors at the U.S. Department of Veterans Affairs (VA) to issue cannabis recommendations in legal states. The senator introduced a similar proposal in 2018 that also cleared the Appropriations Committee. The measure, sponsored by Sen. Jeff Merkley (D-OR), passed in the Senate Appropriations Committee on a voice vote. It would further prohibit VA from interfering with, or denying services to, veterans who participate in a state- Click Here for Full Article legal medical cannabis program. AERIAL

9,906 Students and 320 Faculty 25,500 and Staff Daily Cordova Mall Bayou Boulevard

N. 9th Avenue LOCAL & REGIONAL MAPS

ALABAMA

GEORGIA Pensacola Tallahassee MARKET OVERVIEW PENSACOLA OVERVIEW METRO HIGHLIGHTS

Situated in the western portion of the Florida Panhandle, the U.S. NAVY PRESENCE Pensacola metro comprises Escambia and Santa Rosa Naval Air Station Pensacola employs at least 16,000 military and counties. The city of Pensacola is approximately 60 miles more than 7,400 civilian personnel. from Mobile, Alabama. The local economy is driven by the TOURIST ATTRACTIONS military, the defense industry, tourism and healthcare. Although the median income falls behind the national level, a Warm climate, sandy beaches, and a host of activities and relatively low cost of living contributes to a homeownership attractions draw visitors to Pensacola, adding millions of dollars to the local economy. rate that is greater than the national rate. HEALTHCARE EMPLOYMENT A large number of hospitals in the metro contribute to a significant number of jobs in the healthcare sector.

ECONOMY ▪ The U.S. Navy has a large presence in the Pensacola metro, driving the local economy. Naval Air Station Pensacola, Training Center Corry, Naval Air Technical Training Center, Naval Air Station Whiting Field and the Naval Hospital Pensacola are located here. ▪ Beaches, shopping, restaurants, history and an abundance of activities support a thriving tourism industry, contributing to local employment and funneling millions of dollars to businesses in the area. ▪ Health practitioners comprise a large portion of the local workforce at area medical facilities that include Sacred Heart Hospital and Baptist Hospital.

DEMOGRAPHICS

2019 2019 2019 2019 MEDIAN POPULATION: HOUSEHOLDS: MEDIAN AGE: HOUSEHOLD INCOME: 496K 190K 38.2 $52,500 Growth Growth U.S. Median: U.S. Median: 2019-2024*: 2019-2024*: 38.1 $60,800 * Forecast 4.8% 5.5% Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau DEMOGRAPHICS

POPULATION 1 MILE 3 MILES 5 MILES HOUSEHOLD INCOME 1 MILE 3 MILES 5 MILES 2010 Population 4,942 61,437 134,161 2010 Avg Household Income $53,031 $59,822 $55,648 2020 Population 5,269 64,267 140,529 2020 Avg Household Income $65,253 $69,943 $65,942 2025 Population 5,354 64,529 141,340 2025 Avg Household Income $76,047 $78,916 $74,709 2020 Male Population 2,458 30,927 66,925 2010 Med. Household Income $35,787 $41,171 $38,384 2020 Female Population 2,811 33,340 73,604 2020 Med. Household Income $44,090 $48,849 $45,864 2020 Median Age 39.9 37.4 37.3 2025 Med. Household Income $50,101 $55,313 $52,387 2010 Per Capita Income $26,247 $25,093 $24,035 RACE & ETHNICITY 1 MILE 3 MILES 5 MILES 2020 Per Capita Income $31,691 $28,696 $27,946 2025 Per Capita Income $37,156 $32,483 $31,831 American Indian, Eskimo 0.7% 0.7% 0.7% Asian 3.3% 3.2% 3.2% Black 28.2% 26.3% 31.8% Hawaiian/Pacific Islander 0.2% 0.2% 0.2% White 63.2% 65.2% 59.3% Other 1.3% 1.4% 1.5% Multi-Race 3.2% 3.0% 3.3% Hispanic Ethnicity 5.0% 6.0% 5.7% Not of Hispanic Ethnicity 95.0% 94.0% 94.3%

HOUSEHOLDS 1 MILE 3 MILES 5 MILES 2010 Households 2,441 24,457 55,804 2020 Households 2,555 25,248 57,755 Click to View in 2025 Households 2,613 25,570 58,632 Google Maps he Wolfe-Lipsky Retail Group of Marcus & Millichap specializes in the sale of single-tenant properties and shopping centers Tand has successfully assisted clients in selling 571 separate commercial properties with a market value exceeding $1.65 billion. Having closed sales in more than 40 states, our track record is evidence that we are one of the premier brokerage teams in the United States.

With our experience and background in various fields such as law and finance, we have proved to be invaluable to our clients, earning their trust and exceeding their expectations while best assisting them in their real estate transactions. The Wolfe- Lipsky Retail For more about the Wolfe-Lipsky Retail Group or to view all of Group has sold our available listings, visit www.WolfeRetailGroup.com 571 properties in more than 40 states

About Marcus & Millichap With nearly 2,000 investment professionals located throughout the U.S. and Canada, Marcus & Millichap (NYSE: MMI) is a leading specialist in commercial real estate investment sales, financing, research and advisory services. The firm closed more than 9,400 transactions in 2018 with a value of approximately $46.3 billion.

Marcus & Millichap has been a pioneer in the real estate investment industry and has established a reputation for maximizing value for its clients while fostering long-term relationships built on integrity, trust and service. The company has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. Marcus & Millichap also offers clients access to the most competitive real estate financing through Marcus & Millichap Capital Corporation (MMCC), which maintains relationships with the industry’s leading national, regional and local lenders. Barry M. Wolfe Alan Lipsky Senior Managing Director Investments First Vice President Investments License: SL 702613 License: SL 3279054 [email protected] [email protected] (954) 245-3493 (954) 245-3595

Joseph Prio Corey Kingsbury Associate Associate License: SL 3422291 License: SL3498816

Ashley Anaya Catie Jackson Transaction Coordinator Marketing Coordinator

SPECIAL COVID-19 NOTICE: All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making.)