SHOPPES of HILLSBORO 2201-2265 West Hillsboro Boulevard • Deerfield Beach, Florida 33442 NON - ENDORSEMENT and DISCLAIMER NOTICE

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SHOPPES of HILLSBORO 2201-2265 West Hillsboro Boulevard • Deerfield Beach, Florida 33442 NON - ENDORSEMENT and DISCLAIMER NOTICE Offering Memorandum SHOPPES OF HILLSBORO 2201-2265 West Hillsboro Boulevard • Deerfield Beach, Florida 33442 NON - ENDORSEMENT AND DISCLAIMER NOTICE Confidentiality and Disclaimer The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap Real Estate Investment Services of Florida, Inc. ("Marcus & Millichap") and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, 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. Marcus & Millichap 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 Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved. Non-Endorsement Notice Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. 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 Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. SHOPPES OF HILLSBORO Deerfield Beach, FL ACT ID ZAA0390656 2 SHOPPES OF HILLSBORO TABLE OF CONTENTS SECTION INVESTMENT OVERVIEW 01 Offering Summary Location Overview Tenant Profile Regional Map Local Map Aerial Photo FINANCIAL ANALYSIS 02 Assumptions Tenant Summary Lease Expiration Summary Property Summary Cash Flow Valuation & Return Summary MARKET COMPARABLES 03 Sales Comparables Lease Comparables MARKET OVERVIEW 04 Market Analysis Demographic Analysis 3 SHOPPES OF HILLSBORO INVESTMENT OVERVIEW 4 SHOPPES OF HILLSBORO OFFERING SUMMARY EXECUTIVE SUMMARY VITAL DATA CURRENT PRO FORMA Price $14,500,000 CAP Rate 7.03% 9.24% MAJOR EMPLOYERS Down Payment 35% / $5,075,000 Net Operating Income $1,019,619 $1,339,392 Net Cash Flow After Debt Loan Amount $9,425,000 10.50% / $532,853 18.07% / $917,242 Service EMPLOYER # OF EMPLOYEES Loan Type 10-YR I/O Total Return 10.50% / $532,853 18.07% / $917,242 Sunbeam 5,690 Interest Rate 4% / Interest Only American Traveler Staff Prof L 3,103 Gross Leasable Area (GLA) 61,456 SF Boca Raton Resort and 1,800 Price/SF $235.94 Lynn Rgnal Cncer Ctr Boca Rton 1,800 Current Occupancy 95.77% Valdor Apparel 1,800 Year Built / Renovated 1992 / 2016 Lot Size 7.33 acre(s) CB&i LLC 1,548 Sun Mackie LLC 1,437 JM & A Group 1,357 MAJOR TENANTS Fau 1,349 TENANT GLA LEASE EXPIRATION LEASE TYPE Boca Raton Community Hospital 1,332 Bank United 4,000 01/31/2020 NNN North Broward HSP Aux Gift Shop 1,200 Comunidade Evangelica International 16,000 11/30/2021 NNN Annie L Weaver Health Center 1,027 Optimum Bank 2,500 10/31/2022 NNN Jbyrd’s Muddy Waters Restaurant & Raw Bar 5,200 02/28/2020 NNN DEMOGRAPHICS Sage Dental of Deerfield Beach 3,600 09/30/2027 NNN 1-Miles 3-Miles 5-Miles EXPENSES 2018 Estimate Pop 12,450 136,445 305,195 CURRENT $/SF 2010 Census Pop 11,627 126,439 281,314 Utilities $76,820 $1.25 2018 Estimate HH 7,401 60,662 129,049 2010 Census HH 6,861 56,168 118,562 Contract Services $92,184 $1.50 Median HH Income $35,914 $53,458 $57,150 Repairs & Maintenance $30,728 $0.50 Per Capita Income $35,228 $34,739 $37,749 Insurance $43,019 $0.70 Average HH Income $59,004 $77,832 $88,316 Real Estate Taxes $232,830 $3.79 Management Fee $46,243 $0.75 TOTAL $521,824 $8.49 #5 SHOPPES OF HILLSBORO OFFERING SUMMARY INVESTMENT OVERVIEW Marcus & Millichap is proud to present Shoppes of Hillsboro, a 61,456 square foot retail center located in Deerfield Beach, Florida. This neighborhood retail plaza is situated on two contiguous parcels totaling 7.33 acres (319,407 square feet) with an inline strip plus three, single-tenant pads. Shoppes of Hillsboro is 96 percent occupied by a diverse tenant base on both short-term and long-term leases at market level rents with 3 percent annual increases and renewal options. The property’s diverse tenant mix includes medical, financial, clerical, food service, and sundry retail and service businesses. This stabilized retail property provides excellent cash-flows during the holding period yielding a levered internal rate of return of 15.24 percent and a solid cash-on-cash return of 10.50 percent. Shoppes of Hillsboro has 1,000 feet of direct frontage on West Hillsboro Boulevard, a busy east-west thoroughfare with high traffic counts of over 44,500 Vehicles Per Day (VPD). This property is just off the busy North Miami Trail and West Hillsboro intersection and less than one mile west of Interstate-95. With the AMTRAK Deerfield Beach station less than one mile to the east, and proximity to the Sawgrass Expressway, Florida Turnpike, and US-441, this property provides easy access to Boca Raton, Fort Lauderdale, Pompano Beach, and Hollywood. This neighborhood retail plaza has robust demographics and strong retail and residential presence in the surrounding area. With a population of 136,445 and an average household income of $77,832 within a three-mile radius, this property sustains the increasing purchasing power of consumers to meet demand. Directly to the South of the subject property is Century Village, a large gated retirement community containing over 6,000 condominiums and over 100,000 square feet of entertainment, education, and recreational space across Hillsboro Boulevard. These residents utilize the community’s private daily transportation service to access local shopping, dining, and medical services. To the North of the subject property is Deer Creek Golf & Country Club, a public access golf and banquet facility in a 600-acre residential community. Shoppes of Hillsboro receives high foot traffic from the immediate surrounding national tenants including Super Target, Publix, Marshalls, Sports Authority, Panera Bread Supercuts, and Walgreens. This investment is an exclusive opportunity to enter this limited submarket and compete due to the shrinking supply of developable land. INVESTMENT HIGHLIGHTS ▪ Secure, Stable NOI Growth with Many of the Leases Including 3% Annual Rent Increases ▪ Year-1 Net Operating Income: $1,000,000 ▪ Diverse and Stable Tenant Base Includes Medical, Financial, Clerical, Food Service, and Sundry Retail and Service Business ▪ Inline Strip Plus Three Single Tenant Pads ▪ Historically High Occupancy in a High Barrier to Entry Submarket ▪ Premier Frontage of Busy West Hillsboro Blvd, Which Has High Traffic Counts of Over 44,500 VPD 6 SHOPPES OF HILLSBORO OFFERING SUMMARY INVESTMENT OVERVIEW Shoppes of Hillsboro has been exceptionally maintained and provides professional curb appeal, high visibility signage opportunities, and ample parking. This property offers building signage opportunities for tenants. There are approximately 400 surface parking spaces, providing for a healthy parking ratio of 6.5 spaces per 1,000 square feet of rentable space. This property was built in 1982 and has been fully renovated in 2016 including common area upgrades, parking lot resurfaced with asphalt, and fresh exterior paint jobs. The diverse tenancy mix includes a Bank United, Optimum Bank, and Comunidad Evangelical Church as the outparcels and Sage Dental and Muddy Waters Restaurant & Bar as some of the inline tenants. Bank United has a three-lane drive through and holds over $99 million in deposits, 7.5% of total bank deposits in Deerfield Beach. This asset is strongly sought after by both investors and owner-users alike. Investors continue to flood into this high-growth submarket as rents continue to increase. This asset is extremely easy to manage and typically has a long list of tenants looking to occupy the property given the location, convenience, and overall condition of the property. INVESTMENT HIGHLIGHTS ▪ Great Exposure With Excellent Visibility ▪ Robust Demographics and Growing Submarket With a Population of 136,445 and Average Household Income of $77,832 Within a Three-Mile Radius ▪ Limited Entry Opportunities for Competitors in
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