HOBBY LOBBY Hialeah, Florida (Miami MSA)

Offering Memorandum HOBBY LOBBY Hialeah, Florida (Miami MSA)

Subject Property CONFIDENTIALITY AND DISCLAIMER NET LEASED DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly Marcus & Millichap hereby advises all prospective purchasers of Net Leased property confidential. It is intended to be reviewed only by the party receiving it from Marcus as follows: & 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 The information contained in this Marketing Brochure has been obtained from sources consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide we believe to be reliable. However, Marcus & Millichap has not and will not verify any summary, unverified information to prospective purchasers, and to establish onlya of this information, nor has Marcus & Millichap conducted any investigation regarding preliminary level of interest in the subject property. The information contained herein is these matters. Marcus & Millichap makes no guarantee, warranty or representation not a substitute for a thorough due diligence investigation. Marcus & Millichap has not whatsoever about the accuracy or completeness of any information provided. 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 As the Buyer of a net leased property, it is the Buyer’s responsibility to independently of the property, the size and square footage of the property and improvements, the confirm the accuracy and completeness of all material information before completing presence or absence of contaminating substances, PCB’s or asbestos, the compliance any purchase. This Marketing Brochure is not a substitute for your thorough due with 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 and financial documents related to the property and tenant. While the tenant’s Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial past performance at this or other locations is an important consideration, it is not a tenant or lessee identified in this marketing package. The presence of any corpora- guarantee of future success.Similarly, the lease rate for some properties, including tion’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or newly-constructed facilities or newly-acquired locations, may be set based on a endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or tenant’s projected sales with little or no record of actual performance, or comparable any agent, product, service, or commercial listing of Marcus & Millichap, and is solely rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail included for the purpose of providing tenant lessee information about this listing to to pay the lease rent or property taxes, or may fail to comply with other material terms prospective customers. 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. SUBJECT PROPERTY

1995 West 49th Street, Hialeah, Florida 33012

49TH Street | 51,000 VPD

Marcus & Millichap is pleased to present this rare net leased Hobby Lobby, single tenant investment property prominently located at the entrance to the West 49th Street retail corridor at the intersection in Hialeah, Florida. This 43,928-square-foot new construction building has a 15-year corporate lease guaranteed by Hobby Lobby Stores, Inc. Hobby Lobby is a national arts and crafts retailer, and internationally recognized brand with a very strong corporate structure and over $3.6 billion in gross sales worldwide and ranked as the 106th largest private company in the United States by Forbes.

The West 49th Street retail corridor consists of a 1.85-mile stretch from the Palmetto Expressway east to Red Road and is home to practically all of the top national retailers and restaurants including Home Depot, Lowe’s, Bed Bath & Beyond, Target, Staples, Marshalls, Red Lobster, Chili’s, Fuddruckers,

LA Fitness, Ross, Chipotle, Toys “R” Us, Burlington, Walmart NeighborhoodWalgreens, CVS, Market, Verizon, BJ’s SunTrust, Wholesale Macy’s, Club, Aldi, Old OfficeNavy, Depot,Men’s Warehouse, Denny’s, Party City, Krispy Kreme, Hooters, City Furniture, Michael’s, Olive Garden, Pet Supermarket, BB&T, JCPenney, TJ Maxx and many more.

The building was constructed in 2016, consists of two parcels,

to the neighboring upper income communities of Doral, Palm Springsand sits Northon 3.34 and acres Miami of land Lakes and via benefits the Palmetto from the Expresswayeasy access and Miami Springs via Okeechobee Road. The subject property is an outparcel to the Westland Mall, one of the busiest and most heavily shopped destinations on the West 49th Street retail corridor with annual sales of $600 per square foot.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services© 2017. All rights reserved. FINANCIAL OVERVIEW Overview 1995 West 49th Street, Hialeah, Florida 33012 Price: $14,376,500 Lease Summary Cap Rate: 5.50% Tenant: Hobby Lobby Rentable Square Feet: 43,928 Website: www.HobbyLobby.com Annual Rent: $791,820 Guarantor: Corporate Price PSF: $327.27 Lease Type: Land Area: 3.34 Acres Warranty in Place) Year Built: 2016 Lease Term: 15Modified Years NNN (15-Year Roof Parking Spaces: 239 (5.43/1,000 SF) Option Periods: 3, 5-Year Options $.50 PSF Every 5 Years in Base Rental Increases: Investment Highlights Term and Option Periods • New, 15-Year Lease Roof & Structure: Landlord Hobby Lobby located at 1995 West 49th Street in Hialeah has a Rent Commencement: 3/28/2016 brand new, 15-year with over 13 years remaining. Lease Expiration: 3/31/2031 • Renewal Options and Rent Increases

•There Brand are three,New Location five-year renewal options. Rent increases $0.50 Thisper square is a brand foot new every location; five years construction in base term completed and option in 2016.periods. Base Term Annual Rent PSF Cap Rate • Site 3/28/2016-3/31/2021 $791,820 $18.00 5.50% The property consists of two parcels totaling approximately 3.34 4/1/2021-3/31/2026 $813,815 $18.50 5.66% acres. The property is an outparcel to Westland Mall, anchored by 4/1/2026-3/31/2031 $835,810 $19.00 5.81% Macy’s, Sears and JCPenney, and brings in more than $500 PSF in sales. It is located directly off Palmetto Expressway which has a Option Periods Annual Rent PSF Cap Rate Street, with 51,000 vehicles daily. 4/1/2031-3/31/2036 $857,805 $19.50 5.97% •daily Prominent traffic count High-Profile of approximately Location 243,000 vehicles, and on 49th Located at the intersection of Palmetto Expy and 49th Street, and 4/1/2036-3/31/2041 $879,800 $20.00 6.12% located in one of the cities with the highest population density in 4/1/2041-3/31/2046 $901,795 $20.50 6.27% Florida – with over 200,000 within 3 miles.

#106 on Forbes 2016 List of America’s Largest Private Companies

Hobby Lobby Stores, Inc. owns and operates a chain of arts and craft stores in the United States. The company provides products under various categories that include home decor and frames, crafts and hobbies, scrapbook and paper 750+ crafts, fabric and sewing products, yarn and needle art products, beads and LOCATIONS seasonal and novelty products, and gift cards. It also sells products online. Hobbyjewelry, Lobby baking Stores, and party Inc. supplies, was founded floral andin 1972 wedding and supplies,is based wearable in Oklahoma arts, HEADQUARTERED IN City, Oklahoma. Today, with more than 750 stores, Hobby Lobby is the largest privately owned arts-and-crafts retailer in the world with approximately Oklahoma City 32,000 employees and operating in 47 states. APPROXIMATELY Hobby Lobby opened 56 new stores in 2016. As the world’s largest privately owned arts and crafts retailer, Hobby Lobby continues to increase its retail footprint across the country. Plans are underway to open 60 new locations and 32,000 hire 1,700 to 2,500 new employees. EMPLOYEES

Lessor shall maintain and repair, at Lessor’s sole expense, in a good, commercially reasonable manner and condition in accordance with applicable Law the following (collectively, “Lessor’s Maintenance”): (i) the exterior of the Premises, including, but not limited to, the guttering, downspouts, and exterior paint (Lessor’s painting scheme shall be subject to Tenant’s approval, not to Lessor’s be unreasonably withheld); (ii) the structural components of the Premises (including the Premises); (iii) the roof system of the Maintenance Premises (including, but not limited to, the roof structure, roof membrane, and roof access); (iv) the load bearing walls, slab, and foundation system of the Premises; and (v) the water, sewer, and other utility lines, ducts, and conduits serving the Premises that are outside the Premises. Beginning on the Commencement Date, Tenant shall maintain and repair, at Tenant’s sole expense, in a good, commercially reasonable manner and condition in accordance with applicable Law the following (collectively, “Tenant’s Maintenance”): (i) the Tenant’s interior of the Premises; (ii) the heating and air conditioning equipment serving the Premises (the “HVAC”); (iii) the plumbing Maintenance components serving the Premises that are located in the interior of the Premises; (iv) the electrical components serving the Premises that are located in the interior of the Premises; (v) the water, sewer and other utility lines serving the Premises that are located in the interior of the Premises; (vi) the doors, windows and plate glass located in the Premises. Taxes Tenant shall reimburse Lessor for 100% of the taxes attributable to the Premises Tenant shall maintain on the Premises (collectively, the “Tenant’s Insurance”): (i) all-risk (special form) commercial property

one hundred percent (100%) of the Premises improvements and the Tenant Common Area improvements (“Tenant’s Property Insurance Insurance”);insurance (including (ii) commercial coverage general for wind/windstorm) liability insurance on aagainst primary claims and non-contributoryfor bodily injury basisand propertywith limits damage sufficient (by to way replace of a combination of commercial general liability coverage and excess umbrella coverage), with a combined single limit of not less than $3,000,000 (“Tenant’s Liability Insurance”); (iii) property insurance covering Tenant’s Personal Property; and (iv) workers’ compensation insurance in an amount required by Law. If the replacement of any Capital Improvement for which Tenant is required to maintain under this Lease (excluding Tenant’s

Replacement with the feasibility and necessity of any such proposed replacement, Lessor shall reimburse Tenant for the unamortized costs of of Capital suchPersonal replacement Property) as is follows: necessary the in cost the oflast the five Capital (5) years Improvement of the Term, replacement and provided shall that be amortizedLessor shall on have a straight-line concurred basisin writing over Improvements in its useful life and Tenant’s contribution towards such Capital Improvement replacement shall only apply to that portion of those Last Five Years of costs applicable through the termination of this Lease with Lessor reimbursing Tenant for the costs applicable to the period after Term termination of this Lease (i) upon Tenant’s election to replace the Capital Improvement if such election is made during the last Renewal Term; or (ii) if such Capital Improvement replacement is made prior to the last Renewal Term, upon receipt of Tenant’s election to not exercise the next Renewal Term. Utilities Tenant shall pay all charges for Tenant’s Utilities usage during Tenant’s occupancy of the Premises.

McDonald’s

243,000 Daily

Outparcel to the Westland Mall - Click Here to View 49TH Street Website

51,000 Daily

Palmetto Expressway

51,000 Red Road Daily

49TH Street 21,000 Daily

243,000 Daily Okeechobee Road

65,000

Daily Palmetto Expressway Palmetto

Location Highlights • Surrounding National Retailers Include Walmart Supercenter, Publix, Staples, Marshalls, Home Depot, Bed Bath & Beyond,

Depot, LA Fitness, Pet Supermarket, Bank of America, Aldi, Target,Walgreens, Lowe’s, McDonald’s, Burlington, CVS, Old Starbucks, Navy, Ross, Dunkin Michael’s, Donuts, Office Red Lobster and Many More • 51,000 • Located on 49th Street, with a Daily Traffic Count of More Than of More Than 243,000 Vehicles Per Day, and Red Road with Located35,000 Vehicles Between Per Palmetto Day Expressway, with a Traffic Count • Florida has No State Income Tax • Population of Nearly 500,000 Within Five Miles • Outparcel to Westland Mall, Which Features Over 100 Specialty Stores, Food and Entertainment, is anchored by Macy’s, Sears and JCPenney, and brings in more than $500 PSF in sales • Three Miles from Hialeah Hospital and Hialeah Park Racing & Casino • Four Miles from Miami-Dade College North Campus • Eight Miles from Miami International Airport • Within Close Proximity to the University of Miami, Downtown Miami and American Airlines Arena • Hialeah is the Sixth Largest Municipality in Florida, Serving Over 224,000 Residents • Part of the Miami MSA, Which has a Combined Population of More Than 5.5 Million People

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Hialeah, Florida | Miami-Dade County | Miami MSA Hialeah is the sixth largest municipality in Florida, serving over Downtown Miami, the Civic Center is a major center for hospitals, 224,000 residents living in approximately 20 square miles. Located research institutes, medical centers and biotechnology industries. in Miami-Dade County, Hialeah’s vibrant community is viewed as For over 20 years, the Port of Miami, known as the “Cruise Capital an American industrial city that continues to grow. Hialeah is one of the World”, has been the number one cruise passenger port in the of the largest areas for employment and economic development world. It accommodates some of the world’s largest cruise ships in Miami-Dade County. A myriad of mom and pop stores which productively compete against national retail and restaurant chains and cruise lines. Miami International Airport is the busiest airport and franchises drive Hialeah’s economy. Most of the city’s chain- inand Florida, operations, and the and largest is the gateway busiest betweenport in both the Unitedpassenger States traffic and based restaurants and businesses are some of the top grossing Latin America. stores in the nation. Miami-Dade County’s main four sports teams are the Miami Hialeah is part of the Miami metropolitan area, which includes Dolphins of the National Football League, the Miami Heat of the Miami-Dade, Broward and Palm Beach counties, which has a National Basketball Association, the Miami Marlins of Major combined population of more than 5.5 million people, ranked League Baseball, and the Florida Panthers of the National Hockey seventh largest in the United States, and is the largest metropolitan League. As well as having all four major professional teams, Miami area in the Southeastern United States. is also home to the Major League Soccer expansion team led by David Beckham and Sony Ericsson Open for professional tennis. Several large companies are headquartered in the Miami area. The area is also the home of many college sports teams. The two business, the beaches, conventions, festivals and events draw over largest are the University of Miami Hurricanes, whose football team 38Tourism million is visitors also an annually important into industry. Miami-Dade Along County, with financefrom across and plays at New Miami Stadium, and Florida International University the country and around the world, spending $17.1 billion. Panthers whose football team plays at FIU Stadium.

MIAMI-DADE Miami-Dade County includes 35 incorporated towns and cities and many unincorporated areas. The 2,400-square-mile county extends from the Florida Everglades east to the Atlantic Ocean. It is bordered to the north by Broward County and to the south by Monroe County. The main portion of the city of Miami lies on the shores of Biscayne Bay and is separated from the Atlantic Ocean by barrier islands, the largest of which holds the city of Miami Beach. The metro, with a population of roughly 2.7 million, is located entirely within Miami-Dade County. Miami is the most populous city, with slightly more than 400,000 residents, followed by Hialeah and Miami Gardens.

METRO HIGHLIGHTS BUSINESS-FRIENDLY ENVIRONMENT The metro has no local business or personal income taxes, which attracts businesses and residents to the area.

INFRASTRUCTURE GATEWAY Miami is a gateway for international trading activities and immigration, connecting to ports to the south and beyond.

MEDICAL COMMUNITY The county contains the largest concentration of medical facilities in Florida, which draws residents needing services throughout the state.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services© 2017. All rights reserved. DEMOGRAPHICS POPULATION 1 MILE 3 MILES 5 MILES 2010 Population 37,194 217,088 426,171 2016 Population 38,685 227,579 453,160 2021 Population 38,607 229,148 465,990 2016 Male Population 18,288 110,155 219,219 EDUCATION 2016 Female Population 20,397 117,424 233,941 2016 Median Age 45.9 43.6 40.9 RACE & ETHNICITY 1 MILE 3 MILES 5 MILES American Indian, Eskimo 0.1% 0.1% 0.1% Asian 0.5% 0.4% 0.8% Black 2.1% 3.0% 13.5% 0.0% 0.0% 0.0% White 94.0% 92.4% 80.8% OtherHawaiian/Pacific Islander 1.8% 2.6% 3.0% Multi-Race 1.4% 1.6% 1.9% SPORTS Hispanic Ethnicity 95.2% 94.2% 81.9% Not of Hispanic Ethnicity 4.8% 5.8% 18.1% HOUSEHOLD INCOME 1 MILE 3 MILES 5 MILES 2010 Avg Household Income $48,323 $47,174 $53,396 2016 Avg Household Income $45,769 $44,658 $51,482 2021 Avg Household Income $53,278 $51,601 $59,502 2010 Med. Household Income $34,792 $33,523 $37,455 2016 Med. Household Income $34,099 $32,369 $37,019 2021 Med. Household Income $39,647 $36,812 $42,384 2010 Per Capita Income $16,090 $15,111 $17,138 ARTS & ENTERTAINMENT 2016 Per Capita Income $15,161 $14,234 $16,453 2021 Per Capita Income $17,791 $16,517 $19,063 HOUSEHOLDS 1 MILE 3 MILES 5 MILES 2010 Households 12,327 68,880 135,700 2016 Households 12,752 71,811 143,649 2021 Households 12,838 72,720 148,274

toWith our our clients, experience earning and their background trust and inexceeding various fieldstheir The Wolfe expectationssuch as law and while finance, best assisting we have themproved in totheir be realinvaluable estate Retail Group transactions. has sold approx. 400 properties For more about the Wolfe Retail Group of Marcus & in more than 40 Millichap, or to view all of our available listings, visit states www.WolfeRetailGroup.com

About Marcus & Millichap Marcus & Millichap (NYSE: MMI) has established itself as a leading and expanding investment real estate company with nearly 1,500 brokers in 78 markets throughout the United States and Canada. The foundation of our investment sales is the depth of our local market knowledge. Our 44- year history of maintaining investor relationships in local markets enables us to be the best information source and transaction service provider in North America. Subject Property

Barry M. Wolfe Alan Lipsky Senior Managing Director Investments Vice President Investments [email protected] [email protected] (954) 245-3493 (954) 245-3595

Evan Whelan Angelica Linares Catie Jackson Associate Transaction Coordinator Marketing Coordinator [email protected] [email protected] [email protected] (954) 245-3487 (954) 245-3416 (954) 245-3592