OFFERING Retail MEMORANDUM 704 Duval St Key West, FL 33040

ACTUAL PROPERTY PHOTO

ACTUAL PROPERTY PHOTO The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is CONFIDENTIALITY intended to be reviewed only by the party receiving it from Tiktin Real Estate Investment Services and should not be made available to any other person or entity without the written consent of Tiktin Real Estate Investment AND DISCLAIMER Services. This Pricing Analysis has been prepared to provide summary, unverified information to the current ownership, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Tiktin Real Estate Investment Services has not made any 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 property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Pricing Analysis has been obtained from sources we believe to be reliable; however, Tiktin Real Estate Investment Services has not verified, and will not verify, any of the information contained herein, nor has Tiktin Real Estate Investment Services conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

NON-ENDORSEMENT NOTICE:

Tiktin Real Estate Investment Services, Inc. (“Tiktin”) is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this Pricing Analysis. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Tiktin, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Tiktin, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

2 FINANCIAL ANALYSIS Pricing Analysis ...... 5 TABLE OF EXECUTIVE SUMMARY Investment Overview 7 CONTENTS Rent Roll ...... 8 PROPERTY DESCRIPTION Property Details ...... 9 Aerial Photo ...... 10 Local Retailer Map ...... 11 Local Aerial ...... 12 Regional Map ...... 13 MARKET OVERVIEW Market Overview ...... 15 COMPETITIVE PROPERTY SET Rent Comparables Map ...... 18 Rent Comparables ...... 19-21 Sales Comparables Map ...... 23 Sales Comparables 24-26 DEMOGRAPHIC Demographic Summary ...... 28-29

3 FINANCIAL ANALYSIS PRICING ANALYSIS FINANCIAL ANALYSIS KEY WEST RETAIL BASE RENT 704 , Key West, FL 33040 Occupied Space (1,386 SF): $120,000 Available Space at Market Rents (0 SF): N/A OFFERING PRICE Gross Potential Rent: $120,000 Price $2,200,000 Expense Reimbursement: N/A Down Payment 30%/$660,000 Gross Potential Income: $120,000 Current Occupancy 100% Vacancy/Collection Allowance (0% of GPR): N/A Rentable Square Feet 1,386 SF Effective Gross Income: $120,000 Price/Rentable SF $1,587.30 Total Expenses: $19,546 Cap Rate 4.56% Net Operating Income: $100,454 Lot Size 1,036 SF (0.02 Acres) TOTAL RETURN 4.56%/$100,454 Year Built: 1994 OPERATING EXPENSES

VITAL DATA Real Estate Taxes $3,676 Current Net Operating Income: $100,454 Insurance $9,662 CAM Expenses $1,200 Management Fee (4% of GPR) $4,800 Reserves ($0.15/SF) $208

TOTAL EXPENSES $19,546 EXPENSES/SF $14.10 SF/YR

5 EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS ■■ Frontage On World Famous Duval Street ■■ Key West - Four Million Visitors Annually EXECUTIVE ■■ Average Household Income In Excess of $80,000 Within A One, Three, and SUMMARY Five Mile Radius ■■ Extremely High Barriers To Entry - Irreplaceable Location ■■ Stable Tenants - Both Tenants Have Occupied the Property Since January 2011

INVESTMENT OVERVIEW Tiktin Real Estate Investment Services is pleased to present the Key West Retail Opportunity. The offering consists of 704 Duval Street in Key West, Florida. This two story building has two tenants, a retail store and an upstairs residential unit. The building was constructed in 1994, has 1,386 net rentable square feet and sits on a 1,036 SF lot. The two tenants have long term occupancy at the property and there is a strong demand for both retail and residential space along Duval Street. The property benefits greatly due to its central location on Duval Street where there is constant pedestrian foot traffic. Key West has plenty of things to do. World class fishing exists both on the shallow water flats and in the deep blue sea beyond their barrier coral reef. Other opportunities including dolphin tours, jet skis, para-sailing, glass bottom boat tours, and sunset cruises are available year round. Tourism is a key economic driver for Key West. In 2017 there were over 375,000 passenger arrivals by air and over 750,000 arriving by cruise ship. Typically, the Keys will see over 4 million tourists annually.

7 EXECUTIVE SUMMARY

RENT ROLL

Lease Lease Rentable % Suite Tenant Name Annual Rent Rent SF Commenced Expires Square Feet Occupied

704 - 1 Vapor World 1/1/2011 12/31/2023 693 50% $96,000 $138.53

704 - 2 Apartment 1/1/2011 12/31/2023 693 50% $24,000 $34.63

TOTAL AVAILABLE 0 0.0%

TOTAL OCCUPIED 1,386 100.0% $120,000 $86.58

TOTAL 1,386 100.0% $120,000 $86.58

8 PROPERTY DETAILS THE OFFERING Property: Key West Retail Property Address: 704 Duval Street, Key West, FL 33040

SITE DESCRIPTION Gross Building Area: 1,386 SF PROPERTY Lot Size: 1,036 SF (0.02 Acres) Ownership: FEE SIMPLE DESCRIPTION Year Built: 1994 Number of Stories: 2 Stories Parking: Street Parking Parking Ratio: N/A Topography: FLAT

PARCELS Number of Tax Parcels: 1 APN: 00015970-000100

CONSTRUCTION Foundation: Concrete Framing: Wood Frame Exterior: Wood Frame Parking Surface: N/A Roof : Asphalt Shingles

MECHANICAL HVAC: Central Air Fire Protection: Fully Sprinkled & Monitored Utilities: City of Key West

ZONING Historical Commercial Pedestrian Oriented District - HRCC-1

ACCESS POINTS Duval Street Via Angela Street & Petronia Street

UTILITIES Gas: Tenant Electric: Tenant Water: Tenant Sewer: Tenant Trash: Tenant 9 PROPERTY DESCRIPTION

AERIAL PHOTO - 704 DUVAL STREET

SUBJECT PROPERTY

10 PROPERTY DESCRIPTION

LOCAL RETAILER MAP

11 PROPERTY DESCRIPTION

LOCAL MAP

SUBJECT PROPERTY

12 PROPERTY DESCRIPTION

REGIONAL MAP

SUBJECT PROPERTY

13 MARKET OVERVIEW KEY WEST OVERVIEW

The city of Key West is an island and city in the Straits of Florida on the North American continent. The city lies at the southernmost end of U.S. Route 1, the longest north-south road in the United MARKET States. Key West in the southernmost city in the contiguous United States and the westernmost OVERVIEW island connected by highway in the . The island is about 4 miles long and 1 mile wide, with a total land mass of 4.2 square miles. Duval Street, its main street is 1.1 miles in length in its 14-block long crossing from the Gulf of Mexico to the Straights of Florida and the Atlantic Ocean. Key West is about 95 miles north of Cuba at their closest points. The city is the county seat of Monroe County. The city boundaries include the island of Key West and all or part of several nearby islands. Key West was relatively isolated until 1912 when it was connected to the Florida mainland via the Overseas Railway extension of Henry M. Flagler's Florida Easy Coast Railway. Flagler created a landfill at for his rail yards. The Labor Day Hurricane of 1935 destroyed much of the railroad and killed hundreds of residents, including around 400 World War I veterans who were living in camps and working on federal road and mosquito- control projects in the Middle Keys. The FEC could not afford to restore the railroad. The U.S. Government rebuilt the rail route into an automobile highway, completed in 1938, built atop many of the footings of the railroad. It became an extension of U.S. 1. Prior to the Cuban Revolution of 1959, there were regular ferry and airplane services between Key West and Havana. Key West has been visited by many Presidents of the United States over the years. Some notable presidents to visit were Ulysses S. Grant, Grover Cleveland, William H Taft, Franklin D Roosevelt and most frequently by Harry S. Truman who would go on to have the "Little White House" take their names from his frequent and well-documented visits. Key West has plenty of things to do. World class fishing exists both on the shallow water flats and in the deep blue sea beyond our barrier coral reef. Other opportunities include Dolphin Tours, jet skis, para-sailing, glass bottom boat tours, and sunset cruises are available year round. Tourism is a key economic driver for Key West. In 2017 there were over 375,000 passenger arrivals by Air and over 750,000 arriving by cruise ship. Typically, the Key's will see over 4 million tourists annually.

15 COMPETITIVE PROPERTY SET RENT COMPARABLES COMPETITIVE PROPERTY SET

RENT COMPARABLES MAP

3

2

SUBJECT PROPERTY 1

4

Rent Comps

Subject Property 1 604 Duval Street 2 400 - 424 Duval Street 3 203 Duval Street 4 816 Duval Street

18 COMPETITIVE PROPERTY SET

Occupancy

100.00% Average 90.80% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Subject 604 Duval 400 - 424 203 Duval 816 Duval Property Street Duval Street Street Street

Rent/SF

$100.00 $90.00 Average $83.12 $80.00 $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $- Subject 604 Duval 400 - 424 203 Duval 816 Duval Property Street Duval Street Street Street

19 COMPETITIVE PROPERTY SET

RENT COMPARABLES

Subject Property 704 Duval Street, Key West, FL 33040

Date Surveyed: 5/1/2019 Occupancy: 100% Rent/SF: $86.58 Gross Leasable Area: 1,386 SF Year Built/Renovated: 1994 Lease Type: Gross

COMMENTS: The two tenants, as outlined on Page 8, lease 1,386 SF at a rate of $86.58/SF.

1 604 Duval Street 604 Duval Street, Key West, FL 33040

Date Surveyed: 5/1/2019 Occupancy: 100% Rent/SF: $64.71 Gross Leasable Area: 4,082 SF Year Built: 1901 Lease Type: NNN

COMMENTS: Tuna Skin signed a lease for 1,020 SF at a rate of $64.71/SF NNN

2 400 - 424 Duval Street 400 - 424 Duval Street, Key West, FL 33040

Date Surveyed: 5/1/2019 Occupancy: 54% Rent/SF: $92.35 Gross Leasable Area: 33,297 SF Year Built/Renovated: 1928/2004 Lease Type: NNN

COMMENTS: Savannah's Candy Kitchen leased 1,757 SF of retail space in this 33,297 SF retail building at a rate of $92.35 NNN.

20 COMPETITIVE PROPERTY SET

RENT COMPARABLES

3 203 Duval Street 11641 - 11669 Countryway Blvd, Tampa, FL 33626

Date Surveyed: 5/1/2019 Occupancy: 100% Rent/SF: $93.98 Gross Leasable Area: 3,192 SF Year Built/Renovated: 1901/2018 Lease Type: NNN

COMMENTS: I C Double's leased a 3,192 SF retail space at a rate of $93.98/SF NNN.

4 816 Duval Street 816 Duval Street, Key West, FL 33040

Date Surveyed: 5/1/2019 Occupancy: 100% Rent/SF: $78.00 Gross Leasable Area: 2,695 SF Year Built/Renovated: 1928 Lease Type: NNN

COMMENTS: This building and business are available for sale. The current rent is $78/SF NNN.

21 SALES COMPARABLES COMPETITIVE PROPERTY SET

SALES COMPARABLES MAP

1

SUBJECT PROPERTY 3

4

Recent Sales 2 Subject Property

1 409 Caroline Street

2 224 - 226 Petronia Street

3 617 Duval Street

4 632 Olivia Street

23 COMPETITIVE PROPERTY SET

Price/SF Building

Average $1,266.78

Cap Rate

Average 4.40%

24 COMPETITIVE PROPERTY SET

SALES COMPARABLES

Subject Property 704 Duval Street, Key West, FL 33040

Sales Price: $2,200,000 Gross Leasable Area (GLA) 1,386 SF Price/SF Building: $1,587.30 Cap Rate: 4.56% Lot Size: 1,036 SF (0.02 Acres) Year Built: 1994

1 409 Caroline Street 409 Caroline Street, Key West, FL 33040

Close of Escrow: 11/30/2018 Sales Price: $1,575,000 Gross Leaseable Area (GLA): 1,079 SF Price/SF Building: $1,459.68 Cap Rate: N/A Lot Size: 5,571 SF (0.13 Acres) Year Built/Renovated: 1923/2004

2 224 - 226 Petronia Street 224 - 226 Petronia Street, Key West, FL 33040

Close of Escrow: 8/1/2017 Sales Price: $2,717,700 Gross Leaseable Area (GLA): 2,120 SF Price/SF Building: $1,281.93 Cape Rate: 4.02% Lot Size: 2,850 SF (0.07 Acres) Year Built: 1989

25 COMPETITIVE PROPERTY SET

SALES COMPARABLES

3 617 Duval Street 617 Duval Street, Key West, FL 33040

Close of Escrow: N/A Sales Price: $2,950,000 Gross Leaseable Area (GLA): 3,195 SF Price/SF Building: $923.32 Cap Rate: N/A Lot Size: 1,742 SF (0.04 Acres) Year Built: 1996

4 632 Olivia Street 632 Olivia Street, Key West, FL 33040

Close of Escrow: 2/8/2017 Sales Price: $832,000 Gross Leaseable Area (GLA): 769 SF Price/SF Building: $1,082 Cap Rate: N/A Lot Size: 1,307 SF (0.03 Acres) Year Built/Renovated: 1986/2017

26 DEMOGRAPHICS DEMOGRAPHICS DEMOGRAPHIC POPULATION 1-MILE 3-MILES 5-MILES SUMMARY 2024 Population 11,065 23,524 28,352 2019 Population 10,792 23,405 28,543 2010 Population 9,318 22,770 29,596

HOUSEHOLDS 1-MILE 3-MILES 5-MILES 2024 Households 5,485 10,629 12,266 2019 Households 5,364 10,581 12,342 2010 Households 4,714 10,318 12,749 Growth 2019 - 2024 2.26% 0.45% (0.62%) Growth 2010 - 2019 13.79% 2.55% (3.19%) Owner Occupied Housing Units 2,044 4,272 5,133 Renter Occupied Housing Units 3,320 6,309 7,209 2019 Avg Household Income $93,834 $86,233 $85,003 2019 Med Household Income $70,098 $68,687 $67,290

INCOME 1-MILE 3-MILES 5-MILES <$25,000 1,046 2,048 2,366 $25,000 - $50,000 935 1,878 2,381 $50,000 - $75,000 925 1,845 2,106 $75,000 - $100,000 604 1,580 1,776 $100,000 - $125,000 671 1,223 1,354 $125,000 - $150,000 283 624 735 $150,000 - $200,000 389 697 882 $200,000+ 510 685 742 Source: CoStar

28 DEMOGRAPHIC SUMMARY DEMOGRAPHICS Geography: 5 Miles

POPULATION In 2018, the population in your selected geography was 28,543. The population has changed by (3.56%) since 2010. It is estimated that the population in your area will be 28,543 five years from now, which represents a change of (0.67%) from the current year.

HOUSEHOLDS There are currently 12,342 households in your selected geography. The number of households has changed by (3.19%) since 2010. It is estimated that the number of households in your area will be 12,266 five years from now, which represents a change of (0.62%) from the current year.

INCOME In 2019, the median household income for your selected geography is $67,290, compare this to the U.S. average which is currently $44,779.

The current year per capita income in your area is $36,755, compare this to the U.S. average, which is $28,888. The current year average household income in your area is $85,003, compared this to the U.S. average which is $86,220.

SUBMARKET DATA: ZIP CODE 33040

HOUSING The median sales price for homes within this area is $388,600 compared to the U.S. average which is $226,800.

EMPLOYMENT In 2018, there are 12,937 employees with full time Earnings, 7,241 with part time earning, and 8,049 with no earnings, in your selected area, this is also known as the daytime population.

Source: CoStar Demographics & United States Zip Codes.

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