offering memorandum Main Street Station 5751 North Main Street Jacksonville, 32208 CONFIDENTIAL INFORMATION INFORMATION NOT WARRANTED

This Offering Memorandum and any subsequent manner detrimental to the interest of Owner. Photocopy evaluation material you may be provided (collectively or other duplication is strictly prohibited. known as the “Offering Memorandum”) is intended solely for your limited use in considering whether THE OFFERING MEMORANDUM SHALL NOT BE to pursue negotiations to acquire The Main Street DEEMED TO REPRESENT THAT STATE OF AFFAIRS Station Shopping Center (the “Property”) located in OF THE PROPERTY OR CONSTITUTE AN INDICATION Jacksonville, Florida. The Property is being marketed for THAT THERE HAS BEEN NO CHANGE IN THE BUSINESS sale by Ackerman & Co. (“Broker”). OR AFFAIRS OF THE PROPERTY SINCE THE DATE OF PREPARATION OF THE OFFERING MEMORANDUM. The Offering Memorandum contains brief, selected information pertaining to the business and affairs of the The information provided in the Offering Memorandum Property and has been prepared by Broker. It does not, has been gathered from sources that are deemed however, purport to be all-inclusive or to contain all of reliable, but the Broker does not warrant or represent the information that a prospective purchaser may desire. that the information is true or correct. Prospective Broker makes no representation or warranty, express offerors are advised to verify information independently. or implied, as to the accuracy or completeness of the The Offering Memorandum is not to be construed as an Offering Memorandum or any of its contents, and no offer or as any part of a contract to sell the property. legal liability is assumed to be implied with respect thereto. Furthermore, the inclusion or exclusion in the Offering Memorandum of information relating to asbestos or By acknowledgment of your receipt of the Offering any other hazardous, toxic or dangerous chemical item, Memorandum you agree that the Offering waste or substance (hereinafter collectively referred to Memorandum and its contents are confidential, that as “Waste”) relating to the Property shall in no way be you will hold and treat it in the strictest of confidence, construed as creating any warranties or representations, that you will not directly or indirectly disclose, or permit expressed or implied by the Broker as to the existence anyone else to disclose, the Offering Memorandum or nonexistence or nature of Waste in, under or on the or its contents to any other person, firm, or entity Property, it may create significant legal and/or economic (including, without limitation, any principal for whom obligations upon the Owner, lessee and/or other holders you have been engaged), without prior written of interest in the Property or a part thereof and you are authorization of Owner or Broker and that you will not hereby advised to obtain professional assistance such use or permit to be used the Offering Memorandum as from a consultant, engineer and/or attorney prior to or its contents to be copied or used in any fashion or taking an interest in the Property or a part thereof. main street station shopping center Table Of Contents

01 eXECUTIVE SUMMARY Investment Summary Location and Demographics Property Photographs and Aerials Property Overview Area Map

02 T ENANT Overview Tenant Overview Site Plan Rent Roll

03 market Overview Jacksonville, Florida Competitive Property Map Detailed Demographics

04 financial Overview Summary of Financial Assumptions Cash Flow Projections Existing Lease Expiration In-place Income Reconciliation Contacts

SEAN W. PATRICK JASON POWELL, CCIM BILL MITCHELL Vice President, Investment Sales Vice President, Investment Sales Director Ackerman & Co. Ackerman & Co. iCAP Realty Advisors 770.913.3946 770.913.3952 404.946.6919 [email protected] [email protected] [email protected] 01 EXECUTIVE SUMMARY

Investment Summary Location and Demographics Property Photographs and Aerials Property Overview A rea Map

Main Street Station Shopping Center 01 Executive Summary Main street station shopping Center 5

INVESTMENT SUMMARY

Ackerman & Co.’s retail investment sales team is pleased to present for sale, Main Street Station Shopping Center, a 79,486-square-foot, grocery-anchored retail center located in Jacksonville, Florida.

Built in 1989, Main Street Station was originally constructed for . Over the years, the center has provided a stable tenant base with high occupancy and high historical tenant retention. Significant capital has been invested into the center with a major Food Lion extension/renovation in 2002 and a Family Dollar renovation/extension in 2010. In the beginning of 2012, Delhaize America decided to close 113 Food Lion stores in the Southeast to pull back their presence in markets with the least store density. Beginning November 1, 2012, Save-A-Lot has been assigned the Food Lion lease and will open for business. They are occupying roughly 18,000 square feet and will sublease the balance of the space. With a Food Lion (Delhaize) guarantee running through May of 2021, Main Street Station provides limited exposure to tenant rollover. INVESTMENT SUMMARY Pursuant to the rent roll, over 81.54% of the gross leasable area is backed by credit worthy national retailers. The rent roll at Main Street Station Location: 5751 N. Main Street currently includes Save-A-Lot/Food Lion (Delhaize NYSE: DEG), Family Jacksonville, Florida Dollar (NYSE: FDO), Rainbow Apparel (Private), H&R Block (NYSE: HRB), Occupancy: 98.50% Pizza Hut (NYSE: YUM), Ace Cash Express, Inc. (Private) and VyStar Credit Size: 79,486 SF / 11.53 acres Union (Private). Year Built: 1989 Investment Highlights: Anchors: Save-A-Lot (expiring 2021)  Family Dollar (expiring 2020) Stabilized grocery anchored shopping center with 98.50% occupancy  Low exposure to capital expenses with anchor (Save-A-Lot/Food Lion) & In-place NOI: $493,272 junior anchor (Family Dollar) set to expire in 2021 and 2020, respectively In-place Cap Rate: 10.0%  Historically successful track record with high tenant retention  Strong tenant base with outstanding credit-over 81% of the GLA Offering Price: $4,932,720 ($62.06/SF) represented by credit worthy national companies  Offered well below replacement costs at $62.06/SF 01 Executive Summary Main street station shopping Center 6

LOCATION AND DEMOGRAPHICS

Main Street Station is located in the heart of 23 Jacksonville’s “Urban Core” in-between I-95 and

Ta t ll St. John’s the St. John’s River. Main Street Station offers ample u S l Moncrief Rd ah River n ve A i parking, good visibility off Main Street and several Norwood A ve a M main street station Edgewood A N 5751 N. Main street points of ingress/egress. Traffic counts in 2010 at theM o t jacksonville, florida 32208

111 n ve S

c l ri r intersection of Main Street & 44th Street averaged e a f R e E 44th St d P

approximately 23,500 vehicles per day. N r W D i non a 17 DEMOGRAPHIC SUMMARY 23 US 1 Alt

1 MILE 3 MILES 5 MILESW 10th St Downtown Kin Population Estimate 2010 9,732 70,715 182,961 gs H Jacksonville Rd Shands Jacksonville Population Projection 2015 9,787 70,980 184,706 Medical Center

Average Household Income Estimate (2010) $38,730111 $39,790 $47,732 t S

Median Age 39.1 34.8 35.8 90 ain

M

N Traffic counts ARE 23,500 vehicles per day.

1 Source: 2010 MPSI Systems Inc. d.b.a. DataMetrix® 211

e v A side River 01 Executive Summary Main street station shopping Center 7

PROPERTY PHOTOS

NOTE: Save-a-lot will open for business November 1, 2012.

5751 N. Main street jacksonville, florida 32208 01 Executive Summary Main street station shopping Center 8

PROPERTY AERIAL

50th Street E.

Traffic counts at thIS intersection ARE 23,500 vehicles per day.

N. Main Street 01 Executive Summary Main street station shopping Center 9

PROPERTY OVERVIEW

5751 N Main Street Address: Jacksonville, Florida 32208

County: Duval

Municipality: City of Jacksonville

Building Size: 79,486 square feet

Land Area 11.53 acres

Parcel ID: 031371-000

Year Built: 1989, renovations in 2002 and 2012

Construction: Masonry

Parking: 337 spaces (4.24 per 1,000)

There are three points of ingress/egress via Access: Main Street and E 45th Street

Signage: Large tenant monument sign located off Main Street

Major Food Lion renovation and expansion in 2002, Capital Expenditures: Family Dollar renovations in 2010, and Rainbow NOTE: renovations in 2011 Save-a-lot will open for business November 1, 2012. 01 Executive Summary Main street station shopping Center 10

AREA MAP

Escambia Holmes

Jackson main street station Santa Rosa Okaloosa Walton Washington Nassau 5751 N. Main street Gadsden Hamilton jacksonville, florida 32208 Leon Jefferson Madison Calhoun Bay Duval Baker Liberty Wakulla Suwanee Columbia Taylor

Union St. Johns Gulf LaFayette Clay Franklin Bradford

Gilchrist Alachua Putnam Dixie Flagler Levy

Marlon

Volusia

Citrus Lake Number of People Sumter Seminole 1,300,000 - 2,496,435 Hernando Orange 600,000 - 1,299,999 Pasco

Osceola 350,000 - 599,999 Pinellas Hillsborough Polk Brevard 100,000 - 349,999 Indian 8,365 - 99,999 River Manatee Okee Hardee chobee

Sarasota Total State Population 18,801,319 Highlands St. Lucie

De Soto Martin

Glades Charlotte

Palm Beach Lee Hendry

Broward Collier

Monroe Dade 02 TENANT Overview

T enant Overview R ent Roll Site Plan

Main Street Station Shopping Center 02 Tenant Overview Main street station shopping Center 12

TENANT SUMMARY

Save-a-lot (MORAN FOODS, INC.) SUB-TENANT Moran Foods, Inc. was founded in 1977 by William Moran. Save-A-Lot, a wholly owned subsidiary of SUPERVALU, is the extreme-value grocery store chain operating more than 1185 stores in about 40 states under the Save-A-Lot SUITE banner. Moran Foods, Inc. licenses the Save-A-Lot banner. The chain offers about 1,250 of the most frequently purchased grocery items at prices up to 40% lower than conventional grocery stores. Save-A-Lot currently has an 118 aggressive expansion plan in place, including Moran Foods which just was assigned leases to 5 Food Lion locations in . SQUARE FOOTAGE 39,686 Moran Foods, Inc. Year Founded: 1977 S&P Rating: N/A Employees: 5000 LEASE EXPIRATION Headquarters: Earth City, MO 2011 Revenue: N/A 05/2021 Store Locations: 1185 www.save-a-lot.com

DELHAIZE (LEASE GUARANTOR) Founded in 1957, Food Lion operates as a subsidiary of the Delhazie Group (NYSE: DEG, Eurnext: DELB). is Belgium-based food retailer, which operates in six countries and on three continents. As of September of 2010, the Delhaize network included approximately 2,760 stores worldwide. Under the Food Lion label, Delhaize operates over 1,300 throughout the Southeast and Mid-Atlantic Region. In addition to Food Lion, Delhaize operates under the Hannaford, Sweetbay, , Bottom Dollar and Harvey’s & Reid’s banners in the United SUITE States. Delhaize correctly shows a debt ratio below the industry average and has shown consistent annual net income 118 growth since 2007.

SQUARE FOOTAGE HQ: Brussels, Belgium HQ: Salisbury, NC 39,686 Total Stores: 2,760 Store Locations: 1,300+ Total Employees: 138,000 Year Founded: 1957 LEASE EXPIRATION 2010 Total Revenue (bil): $29.13 www.FoodLion.com 05/2021 2010 Total Revenue (bil): $3.874 02 Tenant Overview Main street station shopping Center 13

TENANT SUMMARY

Family dollar Founded in 1959, Family Dollar Stores, Inc. (NYSE: FDO) operates over 6,800 discount retail stores throughout the United States. As a discount retailer, Family Dollar targets consumers with annual household incomes below $30,000 SUITE by offering a wide range of merchandise in the $1 to $10 range. Family Dollar is able to offer high quality brand name goods by acquiring goods through manufacturer overruns and closeouts. With steady growth and increased revenue 112 and net income since 2008, investor outlook for Family Dollar remains positive.

SQUARE FOOTAGE HQ: Matthews, NC 2010 Total Revenue (bil): $7.8 12,000 Store Locations: 6,800 S&P Credit Rating: BBB- Year Founded: 1959 www.familydollar.com LEASE EXPIRATION Employees: 50,000 06/2020

H&R Block Founded in 1946, H&R block (NYSE: HRB) is one of the world’s largest providers of tax and business services. With over 23 million clients, the tax service division accounts for roughly 77% of H&R Block’s total revenue with the remaining revenue generated from business and corporate services. As of April 30, 2010, H&R Block owned or franchised over 1,600 locations throughout the United States, Canada, and Australia. Tax season revenue for H&R Block increased 6.1% as of April 18, 2011 with retail increases of 3.6% over the previous year. SUITE 104-105 HQ: Kansas City, MO 2010 Total Revenue (bil): $3.874 Year Founded: 1946 S&P Rating: BBB SQUARE FOOTAGE Employees: 110,400 www.hrblock.com 2,400

LEASE EXPIRATION 05/2015 02 Tenant Overview Main street station shopping Center 14

TENANT SUMMARY

Pizza Hut Founded in 1958, Pizza Hut operates as a subsidiary of YUM! Brands, Inc. (NYSE: YUM). With over 37,000 restaurant locations in over 110 countries, Yum Brands operates the world’s largest quick service restaurant system (QSR). Yum operates and franchises restaurants under the brands Pizza Hut, KFC, Taco Bell, Long John Silvers, and A&W. As of December 2010, Pizza Hut operated as the world’s largest QSR pizza chain with over 7,500 locations in the United States and over 5,500 locations abroad. With increased revenue in 2010 and annual increases in net income dating back in 2001, investor outlook for YUM! Brands, Inc. remains strong. SUITE 106 HQ: Plano, TX HQ: Louisville, KY Store Locations: 13,000 Store Locations: 37,000 SQUARE FOOTAGE Year Founded: 1958 Year Founded: 1997 1,200 Employees: 30,000+ Employees: 378,000 www.pizzahut.com Total 2010 Revenue (bil): $11.3 S&P Rating: BBB- LEASE EXPIRATION www.yum.com 6/2014

rainbow Founded in 1935, Rainbow U.S.A., Inc. is a privately held national retailer specializing in children’s, junior and plus size apparel in addition to footwear and accessories. Rainbow U.S.A. operates over 1,100 stores in the United States, Puerto Rico and the Virgin Islands. The Rainbow U.S.A. family includes the brands: Rainbow, Rainbow Plus, Rainbow Kids, One Price, Kidspot, Caren Charles, Fashion Cents, Best Price, Foxmoor, Emphasis and Ups N Downs.

SUITE HQ: Brooklyn, NY Store Locations: 1,100 103 Year Founded: 1935 www.rainbowshops.com

SQUARE FOOTAGE 3,600

LEASE EXPIRATION 1/2016 02 Tenant Overview Main street station shopping Center 15

TENANT SUMMARY

ace cash express Founded in 1968, Ace Cash Express, Inc. is privately held by private equity firm JLLP artners. Ace offers short-term consumer loans, check cashing, bill payment, prepaid debit cards, payday loans, tax refund checks, home loans and money transfer services. Ace Cash is the second largest short-term consumer loan owner operator in the United States. The company serves as an alternative to traditional banking and operates over 1,800 Ace Cash Express and Ace Cash Advance stores throughout the United States. Of their stores roughly 10% are franchise operations. SUITE 110 HQ: Irving, TX Employees: 4,000 SQUARE FOOTAGE Year Founded: 1968 www.acecashexpress.com 1,575 Store Locations: 1,800

LEASE EXPIRATION 09/2013

VyStar credit union Founded in 1952, VyStar Credit Union is a state-chartered credit union operating as the largest credit union in Northeast Florida. The credit union offers traditional banking services including deposit accounts and loans. VyStar’s subsidiary specializes in financial management and insurance services to members and non-members. As of 2010, VyStar operated served over 380,000 members in 15 Florida counties with 30 branch locations and approximately $4.2 billion in assets. income per year $8,583 HQ: Jacksonville, FL Employees: 1,100 Year Founded: 1952 Total Estimated Assets: $4.2 billion Store Locations: 30 www.vystarcu.org 02 Tenant Overview Main street station shopping Center 16

RENT ROLL (As of September 10, 2012)

Rate & Description of Assumption Tenant Name Type & Floor CPI & Current Months Pcnt Improvements Commissions Amount Changes Changes Operating about Suite Number Lease SF Bldg Porters’ Wage to to Rate Rate Comments per Year on to Expense subsequent terms Dates & Term Share Miscellaneous Abate Abate Amount Amount per Month Reimbursements for this tenant Vacant 1,200 $12.25 Nov-2014 $12.62 $5.00 $3.90 Net: Pays a full Retail, Suite: 101 1.51% $14,700 Nov-2015 $13.00 6.00% pro-rata share of Market Shops Nov-2013 to Oct-2018 $1.02 Nov-2016 $13.39 $6,000 $4,683 all reimbursable $12.25/SF Net 60 Months $1,225 Nov-2017 $13.79 expenses.

Rainbow Kids 3,600 $12.50 Retail, Suite: 102 4.53% $45,000 Rainbow Kids Market Shops Nov-2002 to Jan-2016 $1.04 Four (4) x five (5) year options. Reimbursement $12.25/SF Net 159 Months $3,750

H&R Block 2,400 $12.50 Retail, Suite: 104-105 3.02% $30,000 H&R Block Market Shops Oct-1999 to Apr-2015 $1.04 Reimbursement $12.25/SF Net 187 Months $2,500

Pizza Hut 1,200 $13.00 Retail, Suite: 106 1.51% $15,600 Pizza Hut Market Shops Jun-2004 to Jun-2014 $1.08 Five (5) x two (2) year options. Reimbursement $12.25/SF Net 121 Months $1,300

Queen Nails 1,050 $13.50 Aug-2014 $14.00 Retail, Suite: 108 1.32% $14,175 Queen Nails Market Shops Jul-2003 to Jul-2016 $1.13 One (1) x five (5) year option. Reimbursement $12.25/SF Net 157 Months $1,181

New York Fashion 1,575 $12.95 Retail, Suite: 109 1.98% $20,400 Full Service: Market Shops Dec-1989 to Apr-2013 $1.08 Pays no expense $12.25/SF Net 281 Months $1,700 reimbursement.

Ace Cash Express 1,575 $13.50 Retail, Suite: 110 1.98% $21,264 Ace Cash Express Market Shops One (1) x three (3) year option Oct-2004 to Sep-2013 $1.13 Reimbursement $12.25/SF Net at $1,903/month. 108 Months $1,772

Family Dollar 12,000 $7.00 Three (3) x six (6) year options. Retail, Suite: 112 15.10% $84,000 Family Dollar Market Sub-Anchor Lease amendment dated 02/24/11. Apr-2002 to Jun-2020 $0.58 Reimbursement $7.50/SF Net Option to terminate on 06/30/14 219 Months $7,000 with notice by 04/01/14. 02 Tenant Overview Main street station shopping Center 17

RENT ROLL, CON’T. (As of September 10, 2012)

Tenant Name Rate & Description of Assumption Floor CPI & Current Months Pcnt Improvements Commissions Type & Suite Amount Changes Changes Operating about SF Bldg Porters’ Wage to to Rate Rate Comments Number per Year on to Expense subsequent terms Share Miscellaneous Abate Abate Amount Amount Lease Dates & Term per Month reimbusements for this tenant

Save-A-Lot (Former 39,686 $5.94 Four (4) x five (5) year options. Food Lion) 49.93% $235,750 Percentage rent - 1% of gross Save-A-Lot Market Anchor Retail, Suite: 118 $0.50 exceeds fixed rent. Lease was Reimbursement $6.50/SF Net Oct-1989 to May-2021 $19,646 assigned by Food Lion to 380 Months Save-A-Lot.

Rainbow Stores 4,350 $13.00 Retail, Suite: 131-134 5.47% $56,550 Three (3) x five (5) year options. Rainbow Stores Market Shops Jun-2008 to Aug-2017 $1.08 Percentage rent - 4% of annual sales, Reimbursement $12.25/SF Net 111 Months $4,713 once sales exceed annual rent.

Hop Shing 1,240 $14.00 Retail, Suite: 135 1.56% $17,360 One (1) x five (5) year option. Hop Shing Market Shops Jun-1997 to Jun-2015 $1.17 Renewal at negotiable rent with Reimbursement $12.25/SF Net 217 Months $1,447 three months notice.

Brite Star Cleaners 1,500 $12.00 Retail, Suite: 201 1.89% $18,000 Brite Shops Oct-2008 to Oct-2013 $1.00 One (1) x three (3) year option. Reimbursement $12.25/SF Net 61 Months $1,500

Bassils Pizza & Subs 1,200 $12.72 Retail, Suite: 202 1.51% $15,264 Bassils Pizza Market Shops Oct-2000 to Oct-2013 $1.06 Reimbursement $12.25/SF Net 157 Months $1,272

SOS Beauty Supply 4,030 $10.00 Retail, Suite: 203-205 5.07% $40,300 SOS Beauty Market Shops One (1) x five (5) year option Jun-2010 to Jun-2015 $0.83 Supply $12.25/SF Net at $10.50/SF. 61 Months $3,358 Reimbursement

Scholars Christian 2,880 $10.00 Academy 3.62% $28,800 Scholars Christian Market Shops Two (2) x one (1) year options at Retail, Suite: 208 $0.83 Reimbursement $12.25/SF Net existing rent provided 60 days notice. Jun-2009 to Jun-2013 $2,400 49 Months

Total Occupied SF 78,286 98.5% Total Available SF 1,200 1.5% Total Property SF 79,486 100% 02 Tenant Overview Main street station shopping Center 18

SITE PLAN

SUITE TENANT SF

101 Vacant 1,200

118 102 Rainbow Kids 3,600 112 104-105 H&R Block 2,400 108 109 110 131 135 106 Pizza Hut 1,200

To 108 Queen Nails 1,050 106 E 45th St. 109 New York Fashion 1,575 104 110 Ace Cash 1,575 201 112 Family Dollar 12,000 202 102 118 Save-A-Lot Market 39,686 131 Rainbow 4,350 203 101 204 135 Hop Shing 1,240 205 201 Brite Star Cleaners 1,500 202 Bassils Subs 1,200 208 203-205 SOS Beauty Supply 4,030

“Playground” 208 Scholars Academy 2,880 VyStar (ATM) 79,486

N. Main St. 03 MARKET Overview

Jacksonville, Florida Competitive Property Survey D etailed Demographics

Main Street Station Shopping Center 03 Market Overview Main street station shopping Center 20

Jacksonville, Florida

Jacksonville is the largest city in the state of Florida in both terms of population and land area. With a population of 821,784 within the city limits, Jacksonville is the 11th most populous city in the United States. The estimated population for the Jacksonville metropolitan area was 1,313,228 in 2010.

The primary economic drivers in Jacksonville include banking, insurance, healthcare and tourism. Jacksonville’s proximity to the St. John’s River and the Atlantic Ocean has allowed the city to build the largest deep-water port in the South and become Jacksonville, Florida Skyline a major location for sea imports. Jacksonville has also proven to be a major location for highway and air imports and exports via Jacksonville International Airport and interstates I-10 and I-95. YEAR Population % increase 1960 201,030 -1.60% In recent years, Jacksonville has committed a significant amount of capital into 1970 528,865 163.10% revitalizing the downtown area with “The Better Jacksonville Plan”. The city ranked 1980 540,920 2.30% 11th in Inc. Magazine’s list of “Best Cities for Doing Business” and is consistently 1990 635,230 17.40% rated one of the “Hottest Cities in America” for business expansions and relocations. 2000 735,503 15.80% Jacksonville has also consistently been one of the fastest growing cities in the United 2010 821,784 11.70% States with double digit growth rates dating back to 1990. *Source: 2010.census.gov

The overall retail market in Jacksonville ended the first quarter of 2011 with 41,469,776 square feet of total inventory with a reported overall market vacancy rate of 4.90%. Absorption for this period was positive at 13,866 square feet with 14,820 square feet of YTD deliveries and 24,712 square feet of retail product currently under construction. The average quoted rental rate for increased from the previous quarter to $12.92 per square foot. 03 Market Overview Main street station shopping Center 21

COMPETITIVE PROPERTY MAP (3 MILES)

Save a Lot 23 Lem Turner Plaza 8000 Lem Turner Road main street shopping center 5751 North Main Street Jacksonville, Florida 32208 Ta ll ul Winn DixieM ah oncrief Rd od Ave A Edgewood Square Norwood ve t S 2261 Edgewood Ave W n dgewo i E a

M M Ave t o N 111 n S

c l ri r

e a f R e E 44th St d P

N r Gateway Town Center W D i non a 5320 Norwood Avenue 17 23 SaveRite Ma Luther King Jr rtin Pkwy US 1 Alt Grocery Warehouse 201 W 48th St W 10th St K Downtown ing H s R Jacksonville d Shands Jacksonville Medical Center

t

S 111 Winn Dixie ain Supermarkets 90 M 777 North Market Street

N 1

211

e S v U I de A iversi D R A R E IL -M 3

03 Market Overview Main street station shopping Center 22

DETAILED DEMOGRAPHICS

DEMOGRAPHICS 1-MILE 3-MILES 5-MILES 2010 Estimated Population 9,732 70,715 182,961 2015 Projected Population 9,787 70,980 184,706 2000 Census Population 9,481 70,829 178,280 1990 Census Population 9,168 73,844 180,470 Growth 2000 - 2010 0.26% -0.02% 0.25% Growth 2010 - 2015 0.11% 0.07% 0.19% 2010 Estimated Median Age 39.1 34.8 35.8 Total Businesses 325 2,347 8,085 Total Employees 3,187 28,033 125,746 2010 Estimated Households 4,047 28,453 72,718 2015 Projected Households 4,070 28,672 73,808 2000 Census Households 3,934 27,840 69,325 1990 Census Households 3,928 28,808 69,095 Growth 2000-2010 0.28% 0.21% 0.47% Growth 2010-2015 0.11% 0.15% 0.30% 2010 Estimated Average Household Size 2.40 2.44 2.45 HOUSEHOLD BY INCOME 2010 Estimated Median Household Income $32,001 $29,635 $37,856 2015 Projected Median Household Income $36,297 $33,654 $45,029 Median household income is projected to be $36,297 in five years. In 2000, median 2000 Census Median Household Income $25,859 $24,645 $29,958 household income was $25,859, compared 1990 Census Median Household Income $17,837 $15,844 $20,546 to $17,837 in 1990. 2010 Estimated Average Household Income $38,730 $39,790 $47,732 2010 Estimated Per Capita Income $16,224 $15,822 $19,261 2010 Estimated Housing Units 5,008 36,657 88,643 2010 Estimated Occupied Units 80.80% 77.60% 82.10% 2010 Estimated Vacant Units 19.20% 22.40% 18.00% 2010 Estimated Owner Occupied Units 50.30% 39.20% 46.20% 2010 Estimated Renter Occupied Units 30.50% 38.40% 35.90% 2010 Estimated Median Housing Value $72,340 $74,408 $90,104 04 FINANCIAL Overview

Summary of Financial Assumptions Cash Flow Projections E xisting Lease Expirations In-place Income Reconciliations

Main Street Station Shopping Center 04 Financial Overview Main street station shopping Center 24

EXECUTIVE SUMMARY

PROPERTY DESCRIPTION Property Address 5751 North Main Street, Jacksonville, Florida 32208 Size of Improvements 79,486 SF Occupancy as of September 13, 2012 98.49%

Acquisition and residual summary Purchase Price as of November 1, 2012 $4,933,000 Price Per Square Foot $62.06 All Cash IRR 13.40% Initial Capitalization Rate 9.95% In-Place Capitalization Rate 10.00% Cash-on-Cash Return 9.45% Five Year Average Cash-on-Cash Return 9.90% Net Residual Value as of October 31, 2022 $7,789,461 Residual Capitalization Rate 10.25% Residual Cost of Sale 2.50%

General Property Notes

[1] Leveraged analysis is based on market financing that may or may not be obtainable by a particular investor. 04 Financial Overview Main street station shopping Center 25

SUMMARY OF FINANCIAL ASSUMPTIONS

GLOBAL MARKET LEASING - 2ND GENERATION Analysis Period Retention Ratio 80% Commencement Date November 1, 2012 Lease Term 5 Years End Date October 31, 2022 2012 Annual Market Rent Term 10 Years Anchor $6.50 PSF Area Measures Sub-Anchor $7.50 PSF Building Square Footage (RSF) 79,486 SF Shops $12.25 PSF Consumer Price Index (CPI) 2.00% Rent Adjustment 2.00% Annually Vacancy Loss [1] 5.00% Expense Recovery Type Net 2012 Tenant Improvements New - All Suites $5.00 PSF REVENUE ASSUMPTIONS Renewal - All Suites $0.00 PSF Market Rent Growth Weighted Average - All Suites $1.00 PSF 2013 - 2.00% 2018 - 2.00% 2014 - 2.00% 2019 - 2.00% Commissions 2015 - 2.00% 2020 - 2.00% New 6.00% 2016 - 2.00% 2021 - 2.00% Renewal 2.00% 2017 - 2.00% 2022 - 2.00% Weighted Average 2.80% Downtime EXPENSE ASSUMPTIONS New 6 Month(s) Weighted Average [3] 1 Month(s) Growth Rates Operating Expenses 2.00% Capital Reserves 2.00% market leasing - vacant lease-up Property Taxes 2.00% General Property Notes Total Vacant as of September 13, 2012 1,200 SF Property Taxes Reassessed No Absorption Period Start Date November 1, 2012 [1] A vacancy loss of 5.00% has been assumed Management Fee (% of EGR) 3.00% Absorption Period 13 Month(s) for this analysis; Food Lion (Save-A-Lot), Family Operating Expense Source [2] CY 2011 P&L Dollar, Pizza Hut, Rainbow Stores, and Rainbow Lease Term 5 Years Kids have been excluded. 2012 Capital Reserves $0.15 PSF 2012 Annual Market Rent 12.25 PSF [2] Operating Expenses are based on CY 2011 Rent Adjustment 2.00% Annually operating expenses. All entered expenses are expected to grow at 2.00% annually for the 2012 Tenant Improvements $5.00 PSF duration of the holding period. Commissions 6.00% [3] The weighted average downtime has been Free Rent 0 Month(s) rounded to the nearest whole month. 04 Financial Overview Main street station shopping Center 26

CASH FLOW PROJECTIONS

Fiscal Year Ending - october 31 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 FY 2012 Potential Gross Revenue $/SF/YR Base Rental Revenue $8.29 $658,606 $661,694 $667,770 $679,043 $684,558 $691,916 $698,941 $712,829 $761,528 $812,176 $829,587 Absorption & Turnover Vacancy (0.26) (20,856) (4,062) (8,146) (5,037) (4,807) (5,021) (7,675) (17,609) (30,749) (5,307) (5,544) Scheduled Base Rental Revenue 8.02 637,750 657,632 659,624 674,006 679,751 686,895 691,266 695,220 730,779 806,869 824,043 Expense Recoveries 1.50 119,378 134,940 139,683 152,138 156,933 157,176 159,671 172,584 244,441 333,380 340,613 VyStar Jax Navy FCU ATM 0.11 8,583 9,180 9,364 9,551 9,742 9,937 10,135 10,338 10,545 10,756 10,971

Total Potential Gross Revenue 9.63 765,711 801,752 808,671 835,695 846,426 854,008 861,072 878,142 985,765 1,151,005 1,175,627 Vacancy Loss 0.00 0 (8,438) (3,424) (10,914) (12,248) (7,480) (6,435) (3,985) (11,973) (13,493) (8,219)

Effective Gross Revenue 9.63 765,711 793,314 805,247 824,781 834,178 846,528 854,637 874,157 973,792 1,137,512 1,167,408

Operating Expenses Insurance (0.29) (22,971) (23,799) (24,157) (24,743) (25,025) (25,396) (25,639) (26,225) (29,214) (34,125) (35,022) Management Fees (0.25) (19,749) (20,144) (20,546) (20,957) (21,377) (21,804) (22,240) (22,685) (23,139) (23,601) (24,073) Real Estate Taxes (0.77) (60,847) (62,064) (63,305) (64,571) (65,863) (67,180) (68,523) (69,894) (71,292) (72,718) (74,172) Taxes & Licenses (0.01) (639) (652) (665) (678) (691) (705) (719) (734) (748) (763) (779) Electric (0.30) (24,004) (24,484) (24,973) (25,473) (25,982) (26,502) (27,032) (27,573) (28,124) (28,687) (29,260) Water & Sewer (0.50) (39,747) (40,542) (41,353) (42,180) (43,024) (43,884) (44,762) (45,657) (46,570) (47,502) (48,452) Security (0.54) (42,564) (43,415) (44,283) (45,169) (46,072) (46,994) (47,933) (48,892) (49,870) (50,867) (51,885) Trash (0.27) (21,317) (21,743) (22,178) (22,622) (23,074) (23,536) (24,006) (24,487) (24,976) (25,476) (25,985) Parking Lot (0.19) (15,278) (15,584) (15,896) (16,213) (16,538) (16,868) (17,206) (17,550) (17,901) (18,259) (18,624) Exterior Lighting (0.04) (2,798) (2,854) (2,911) (2,969) (3,028) (3,089) (3,151) (3,214) (3,278) (3,344) (3,411) Exterior Landscape (0.14) (10,986) (11,206) (11,430) (11,658) (11,892) (12,129) (12,372) (12,619) (12,872) (13,129) (13,392) Signage (0.01) (904) (922) (941) (959) (979) (998) (1,018) (1,039) (1,059) (1,081) (1,102) Roofs (0.04) (3,500) (3,570) (3,641) (3,714) (3,789) (3,864) (3,942) (4,020) (4,101) (4,183) (4,266) General Building (0.02) (1,698) (1,732) (1,767) (1,802) (1,838) (1,875) (1,912) (1,950) (1,989) (2,029) (2,070) Sidewalks (0.03) (2,550) (2,601) (2,653) (2,706) (2,760) (2,815) (2,872) (2,929) (2,988) (3,047) (3,108) Doors & Hardware (0.01) (587) (599) (611) (623) (636) (648) (661) (675) (688) (702) (716) Plumbing (0.03) (2,731) (2,786) (2,842) (2,898) (2,956) (3,016) (3,076) (3,137) (3,200) (3,264) (3,329) HVAC (0.03) (2,208) (2,253) (2,298) (2,344) (2,390) (2,438) (2,487) (2,537) (2,588) (2,639) (2,692)

Total Operating Expenses (3.46) (275,078) (280,950) (286,450) (292,279) (297,914) (303,741) (309,551) (315,817) (324,597) (335,416) (342,338)

Net Operating Income 6.17 490,633 512,364 518,797 532,502 536,264 542,787 545,086 558,340 649,195 802,096 825,070

Leasing And Capital Costs Tenant Improvements (0.06) (4,455) (11,584) (7,980) (4,934) (4,709) (4,919) (7,516) (22,594) (51,946) 0 (10,734) Leasing Commissions (0.10) (7,952) (14,652) (14,244) (8,808) (8,405) (8,780) (13,417) (30,790) (53,765) 0 (19,159) Capital Reserves (0.15) (11,923) (12,161) (12,405) (12,653) (12,906) (13,164) (13,427) (13,696) (13,970) (14,249) (14,534)

Total Leasing And Capital Costs (0.31) (24,330) (38,397) (34,629) (26,395) (26,020) (26,863) (34,360) (67,080) (119,681) (14,249) (44,427)

Operating Cash Flow 5.87 466,303 473,967 484,168 506,107 510,244 515,924 510,726 491,260 529,514 787,847 780,643 04 Financial Overview Main street station shopping Center 27

EXISTING LEASE EXPIRATIONS

Fiscal Year Number of Suites Rentable Square Feet Expiring Annual [1] Cumulative [1] 2013 5 8,730 10.98% 10.98% 2014 1 1,200 1.51% 12.49% 2015 3 7,670 9.65% 22.14% 2016 2 4,650 5.85% 27.99% 2017 1 4,350 5.47% 33.47% 2018 0 0 0.00% 33.47% 2019 0 0 0.00% 33.47% Beyond 2 51,686 65.03% 98.49% Subtotal 14 78,286 98.49% 98.49% Vacant 1 1,200 1.51% 100.00% TOTAL 15 79,486 100.00% 100.00%

60,000

50,000 feet

40,000

30,000 square

20,000

10,000 rentable

0 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘Beyond

[1] Based on 79,486 Square Feet. 04 Financial Overview Main street station shopping Center 28

IN-PLACE INCOME RECONCILIATIONS (Fiscal Year Ending October 31)

Lease Lease 2012 2012 2012 Oper. 2012 Tenant Square Feet Commence- Termination Base Rent PSF Base Rent Exp Recoveries Gross Rent ment Rainbow Kids 3,600 11/02 1/16 $12.50 $45,000 $7,015 $52,015 H&R Block 2,400 10/99 4/15 12.50 30,000 6,672 36,672 Pizza Hut 1,200 6/04 6/14 13.00 15,600 3,051 18,651 Queen Nails 1,050 7/03 7/16 13.50 14,175 2,668 16,843 New York Fashion 1,575 12/89 4/13 12.95 20,400 0 20,400 Ace Cash Express 1,575 10/04 9/13 13.50 21,264 4,004 25,268 Family Dollar 12,000 4/02 6/20 7.00 84,000 5,002 89,002 Save-A-Lot (Former Food Lion) 39,686 10/89 5/21 5.94 235,750 42,486 278,236 Rainbow Stores 4,350 6/08 8/17 13.00 56,550 18,046 74,596 Hop Shing 1,240 6/97 6/15 14.00 17,360 3,442 20,802 Brite Star Cleaners 1,500 10/08 10/13 12.00 18,000 4,105 22,105 Bassils Pizza & Subs 1,200 10/00 10/13 12.72 15,264 3,330 18,594 SOS Beauty Supply 4,030 6/10 6/15 10.00 40,300 10,244 50,544 Scholars Christian Academy 2,880 6/09 6/13 10.00 28,800 7,321 36,121 Leased Square Footage 78,286 $642,463 $117,386 $759,849 Vacant Square Footage 1,200 Management Fees (23,053) Total Square Footage 79,486 Insurance (19,749) VyStar Jax navy FCU ATM 8,583 Real Estate Taxes (60,847) Effective Gross Income $768,432 Taxes & Licenses (639) Total Expenses ($275,160) Electric (24,004) Water & Sewer (39,747) Net Operating Income $493,272 Security (42,564) Trash (21,317) Parking Lot (15,278) Exterior Lighting (2,798) Exterior Landscape (10,986) Signage (904) Roofs (3,500) General Building (1,698) Sidewalks (2,550) Plumbing (587) Electrical (2,731) ENSES P HVAC (2,208) EX ($275,160) For more information, please contact: sean W. patrick | Vice President, Investment Sales JASON POWELL, CCIM | Vice President, Investment Sales 770.913.3946 [email protected] 770.913.3952 [email protected]

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