OFFERING Key West 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 Duval Street, 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 Florida Keys. 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 Trumbo Point 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" Truman Annex 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.