Fortunoff Backyard Store Sale-Leaseback Portfolio Can Be Purchased Separately Or As Portfolio True Nnn Lease

STATEN ISLAND

FORTUNOFF BACKYARD STORE SALE-LEASEBACK PORTFOLIO CAN BE PURCHASED SEPARATELY OR AS PORTFOLIO TRUE NNN LEASE

2 NY AND 1 NJ LOCATIONS Investment Highlights Contact the THE OFFERING is a sale-leaseback opportunity to purchase three Fortunoff Backyard team Stores located within the New York City MSA. The subject properties are located in Woodbridge, NJ; Riverhead, NY; and Staten Island, NY. Each location offers a new 10- JOE CACCAMO year true NNN lease featuring 10% increases every 5 years. The Tenant is responsible [email protected] for all maintenance of the property. The Landlord pays the property taxes and is fully PH: 415.274.7394 reimbursed by the Tenant. CA DRE# 01191110

THE SUBJECT PROPERTIES are located in strategic, gateway locations within core New York metro markets. The properties enjoy excellent synergy with strong neighboring tenants and are well located along major commercial corridors. Each property benefits from outstanding demographics, including dense populations and high average household incomes near $100,000. DAVID LUCAS FORTUNOFF BACKYARD STORE is an outdoor furniture and accessory retailer with 34 JULIUS M. FEINBLUM REAL ESTATE, INC. locations in New York, New Jersey, Connecticut, Delaware, Pennsylvania, and Florida. [email protected] Fortunoff is one of the most recognizable names in the outdoor furniture industry to PH: 516.844.8890 the consumers in the Northeast. Fortunoff is majority owned by Chair King Backyard NY LIC.# 40LU0891694 Store, one of the largest outdoor retailers in the United States. Fortunoff offers a vast assortment of high quality patio furniture, backyard accessories, grills, umbrellas, rugs, and more. RICHARD WEISS JULIUS M. FEINBLUM REAL ESTATE, INC. [email protected] WOODBRIDGE PH: 516.844.8890 NY LIC.# 30WE0850568

JULIUS M. FEINBLUM REAL ESTATE, INC. NJ LIC.# 9483799

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. Buyer must verify the information and bears all risk for any inaccuracies. 34 LOCATIONS IN NEW YORK, NEW JERSEY, CONNECTICUT, DELAWARE, PENNSYLVANIA, AND FLORIDA 2 Tenant Overview

ABOUT FORTUNOFF BACKYARD STORE

Fortunoff Backyard Store is an outdoor furniture and accessory retailer with 34 locations in New York, New Jersey, Connecticut, Delaware, Pennsylvania, and Florida. Fortunoff is majority owned by Chair King, one of the largest outdoor retailers in the United States. Fortunoff offers a vast assortment of high quality patio furniture, backyard accessories, grills, umbrellas, rugs, and more.

Chair King Backyard Store is the largest casual furniture retailer in Texas, offering the largest selection of casual furniture in the South, while maintaining over $20 million in inventory. There are currently 18 stores throughout Texas and growing. The company also operates Leisure Collections, a design showroom at the Houston Design Center.

Fortunoff is one of the most recognizable names in the outdoor furniture industry to the consumers in the Northeast. The Chair King/Fortunoff group was ranked by Casual Living Magazine as #1 in the sale of outdoor furniture in the United States among specialty retailers. In 2016, Fortunoff Backyard Store and Chair King Backyard Store generated an estimated combined $123.6 million dollars in sales.

REPRESENTATIVE INTERIOR PHOTO LOCATIONS IN NEW YORK, NEW JERSEY, CONNECTICUT, DELAWARE, This site plan is a rendering that has been created based on sources we believe to be reliable. We make PENNSYLVANIA, AND FLORIDA no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must 34 verify the information and bears all risk for any inaccuracies. 3 History of the Tenant & These Locations

Fortunoff was a very large, famous department store retailer in NY established in 1922. The family sold the company to a private equity firm in 2005. The private equity firm did not operate the business well, and in 2009 the family repurchased their trade name and brand name Fortunoff. In 2009, they made a deal with operating partner, Houston, Texas-based Chair King Backyard Store. Chair King Backyard Store is the largest outdoor patio retailer in TX with 18 stores.

The owners of Chair King and one of the principles of Fortunoff own the Real Estate being marketed together.

Following are histories on each asset:

RIVERHEAD – The property in Riverhead was a Patio Retailer named Kaufman Allied. The Kaufman Allied group retired and sold the property/business to Fortunoff. Fortunoff spent a significant amount of money to bring the building up to their current standards.

STATEN ISLAND – This was an acquisition of a patio retailer, Montalbanos Pool and Patio, who also retired.

WOODBRIDGE – This was a location that the property owner would not put money into. The building needed a tremendous amount of work, and the only financially viable solution was for Fortunoff to purchase the property and do their own improvements.

The company continues to grow and will be opening locations in PA & NJ this year.

The guarantor for these leases will be the parent entity (Furniture Concepts LLC) which operates all stores in the portfolio. Financials will be available upon receipt of a credible LOI.

NORTH FORK RIVERHEAD HAMPTONS BRONX LONG ISLAND QUEENS MANHATTAN BROOKLYN STATEN ISLAND (NYC) WOODBRIDGE

ATLANTIC OCEAN

JERSEY SHORE

THE SUBJECT PROPERTIES are strategically located off major highways that connect to well-known beach towns.

THE STATEN ISLAND PROPERTY services a dense New York borough with residents known for their backyard entertaining.

THE WOODBRIDGE PROPERTY is located at the gateway to the Jersey Shore, a coastal region of New Jersey that encompasses 141 miles of oceanfront along the Atlantic Ocean.

THE RIVERHEAD PROPERTY is located in a gateway community to Long Island’s famed Hamptons and North Fork beach communities at the terminus of the Long Island expressway (I-495). 5 Subject Properties

Woodbridge, NJ Riverhead, NY Staten Island, NY

SALE PRICE: SALE PRICE: SALE PRICE: $4,711,000 $3,556,000 $4,267,000

CAP RATE: CAP RATE: CAP RATE: $6.75% $6.75% $6.75%

CLICK HERE FOR CLICK HERE FOR CLICK HERE FOR MORE INFO MORE INFO MORE INFO

6 Overview

WOODBRIDGE FORTUNOFF BACKYARD

127 W KELLY ST, WOODBRIDGE, NJ 08840

$4,711,000 6.75% PRICE CAP

LEASABLE SF LAND AREA LEASE TYPE 13,514 SF 1.04 ACRES TRUE NNN

PRICE PSF NOI $348.60 $318,000

• New 10-year true NNN lease featuring 10% increases every 5 years

• Located along U.S. 1, a major retail corridor in Woodbridge, where average traffic counts exceed 88,000 VPD

• Neighboring tenants include Target, Nordstrom, Macy’s, Boscov’s, DICK’S Sporting Goods, Lord & Taylor, and more

• More than 316,000 people with average household incomes

This information has been secured from sources we believe to be reliable but we exceeding $106k within a 5-mile radius make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any 7 inaccuracies. GARDEN STATE 193,730 PARKWAY Aerial - Woodbridge, NJ VPD

HACKENSACK GOLF MERIDIAN COURSE HEALTH HOSPITAL 1

287

287 170,414 W KELLY VPD STREET

RUTGERS STATE 1 UNIVERSITY

440 GOLF COURSE 95

ST. PETER’S HACKENSACK UNIVERSITY 87,307 215,030 MERIDIAN HOSPITAL HEALTH VPD VPD HOSPITAL

PARKWAY

18 GARDEN STATE

RUTGERS MIDDLESEX HEALTH ROBERT COUNTY MIDDLESEX WOOD HOSPITAL 1 COLLEGE COUNTY JOHNSON UNIVERSITY 95 GOLF COURSE 206,348 NEW YORK VPD CITY DEVRY 29 MILES UNIVERSITY

GARDEN STATE 104,839 PARKWAY VPD

1 95 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 18 information. Buyer must verify the information and bears 8 all risk for any inaccuracies. Retail Aerial - Woodbridge, NJ

PARSONAGE ROAD

88,490 VPD

MENLO AVENUE

W KELLY STREET

PRICE $4,711,000 Price Per Square Foot: $348.60 Capitalization Rate: 6.75% Total Rentable Area (SF): 13,514 Lot Size (AC): 1.04 STABILIZED INCOME PER SQUARE FOOT Scheduled Rent $23.53 $318,000 Effective Gross Income $23.53 $318,000 LESS PER SQUARE FOOT Taxes NNN $0.00 Insurance NNN $0.00 Total Operating Expenses NNN $0.00 EQUALS NET OPERATING INCOME $318,000

TENANT INFO LEASE TERMS RENT SUMMARY

CURRENT MONTHLY YEARLY MONTHLY YEARLY TENANT NAME SQ. FT. RENT RENT RENT RENT/FT RENT/FT

Fortunoff Backyard Store 13,514 1 5 $318,000 $26,500 $318,000 $1.96 $23.53

Woodbridge, NJ 6 10 $29,000 $348,000 $2.15 $25.75

TOTALS: 13,514 $318,000 $26,500 $318,000 $1.96 $23.53

13,514 1.04 RENTABLE SF ACRES

GOLDEN STATE PARKWAY

ELEMENTARY SCHOOL 194,470 NOT A PART VPD

FORD AVENUE FORD AVENUE US HIGHWAY 1 US HIGHWAY

VETERAN’S MEMORIAL HOME 10,999 VPD

1 1 US HIGHWAY 88,490 STREET W KELLY

VPD 1

PARSONAGE ROAD 1 US HIGHWAY

MENLO AVENUE ELEMENTARY SCHOOL

This site plan is a rendering that has been created based on sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 12 Demographics - Woodbridge, NJ

POPULATION 1-MILE 3-MILES 5-MILES NEW YORK 2010 14,676 125,035 301,903 CITY 2018 15,081 129,515 316,303 (29 MILES)

2023 15,299 131,762 324,983

2018 HH INCOME 1-MILE 3-MILES 5-MILES Average $105,277 $116,104 $106,751 Median $86,474 $88,672 $82,255 WOODBRIDGE

WOODBRIDGE TOWNSHIP is located in Middlesex County, New Jersey approximately 30 miles southwest of Manhattan, and just west of Staten Island. Woodbridge hosts the intersection of the New Jersey Turnpike and the Garden State Parkway, the two busiest highways in the state. In 2017, Woodbridge had an estimated population of 101,965.

The Woodbridge Center, a 1.6 million square foot shopping and dining destination, draws people from throughout New THE AVERAGE HOUSEHOLD Jersey and New York City. INCOME WITHIN A 3-MILE RADIUS IS OVER $116K

RIVERHEAD FORTUNOFF BACKYARD

1189 OLD COUNTRY ROAD, RIVERHEAD, NY 11901

$3,556,000 6.75% PRICE CAP

LEASABLE SF LAND AREA LEASE TYPE 13,645 SF 1.01 ACRES TRUE NNN

PRICE PSF NOI $260.61 $240,000

• New 10-year true NNN lease featuring 10% increases every 5 years

• Located within the retail hub of Riverhead along Old Country Road where average traffic counts exceed 30,150 VPD

• Adjacent to strong neighboring retailers including Target, Walgreens, TJ Maxx, Big Lots, and more

• More than 33,000 people with average household incomes

This information has been secured from sources we believe to be reliable but we exceeding $94k within a 5-mile radius make no representations or warranties, expressed or implied, as to the accuracy of the 14 information. Buyer must verify the information and bears all risk for any inaccuracies. Aerial - Riverhead, NY 15,500 VPD

GOLF GOLF GOLF COURSE COURSE COURSE SOUND AVENUE

GOLF GOLF COURSE COURSE OSBORN GOLF AVENUE COURSE 23,439 SOUND AVENUE VPD PECONIC BAY MEDICAL CENTER HIGH SCHOOL 25

HIGH SCHOOL CALVERTON EXECUTIVE AIRPARK HIGH SCHOOL MIDDLE SCHOOL ELEMENTARY OLD COUNTRY ROAD SCHOOL

25 25

MIDDLE COUNTRY16,300 ROAD 24 VPD SUFFOLK COUNTY 25 24 QUOGUE RIVERHEAD ROAD GOLF COURSE PHENIX EXPERIMENT AT RIHC

GOLF 15,492 NEW YORK COURSE VPD CITY 495 80 MILES BROOKHAVEN NATIONAL LABORATORY 27,597 VPD SUFFOLK 43,260 COUNTY VPD COMMUNITY COLLEGE 27 FRANCIS S. GABRESKI AIRPORT GOLF GOLF COURSE 495 COURSE

MORICHES-RIVERHEAD ROAD

30,150 VPD

OLD COUNTRY ROAD

HARRISON AVENUE

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. Buyer must verify the information and bears all risk for any inaccuracies. 16 RIVERHEAD - SURROUNDING RETAIL Income & Expense - Riverhead, NY

PRICE $3,556,000 Price Per Square Foot: $260.61 Capitalization Rate: 6.75% Total Rentable Area (SF): 13,645 Lot Size (AC): 1.01 STABILIZED INCOME PER SQUARE FOOT Scheduled Rent $17.59 $240,000 Effective Gross Income $17.59 $240,000 LESS PER SQUARE FOOT Taxes NNN $0.00 Insurance NNN $0.00 Total Operating Expenses NNN $0.00 EQUALS NET OPERATING INCOME $240,000

TENANT INFO LEASE TERMS RENT SUMMARY

CURRENT MONTHLY YEARLY MONTHLY YEARLY TENANT NAME SQ. FT. RENT RENT RENT RENT/FT RENT/FT

Fortunoff Backyard Store 13,645 1 5 $240,000 $20,000 $240,000 $1.47 $17.59

Riverhead, NY 6 10 $22,000 $264,000 $1.61 $19.35

TOTALS: 13,645 $240,000 $20,000 $240,000 $1.47 $17.59

13,645 1.01 RENTABLE SF ACRES

ROANOKE AVENUE

HARRISON AVENUE 9,924 VPD

MIDDLE SCHOOL HIGH SCHOOL OLD COUNTRY ROAD OLD COUNTRY

HARRISON AVENUE 3,625 VPD HARRISON AVENUE

30,150 VPD OLD COUNTRY ROAD OLD COUNTRY NOT A PART 5,102 VPD

PYLON SIGN

OSBORN AVENUE

PULASKI STREET OLD COUNTRY ROAD

POPULATION 1-MILE 3-MILES 5-MILES 2010 4,659 21,390 32,013

2018 4,576 22,569 33,831

2023 4,549 23,052 34,622

2018 HH INCOME RIVERHEAD 1-MILE 3-MILES 5-MILES Average $82,831 $86,672 $94,661 NEW YORK

Median $56,996 $59,329 $70,353 CITY (80 MILES)

RIVERHEAD, NY is located in Suffolk County on the northern shore of Long Island, approximately 80 miles northwest of Manhattan. Suffolk County is one of New York State’s most important farming regions with soil and weather conditions ideal for more than 100 crops, including wine grapes.

LONG ISLAND has long provided an escape from the big city, offering miles of beaches, historic sites, quaint villages, wine country and the famed Hamptons. The Island is easily THE AVERAGE HOUSEHOLD accessible via the Long Island Expressway, the Long Island Rail Road, and from three major airports; JFK, LaGuardia, INCOME WITHIN A 5-MILE RADIUS and Long Island Islip MacArthur Airport. IS OVER $94K

STATEN ISLAND FORTUNOFF BACKYARD

2075 RICHMOND AVE, STATEN ISLAND, NY 10314

$4,267,000 6.75% PRICE CAP

LEASABLE SF LAND AREA LEASE TYPE 9,400 SF 0.49 ACRES TRUE NNN

PRICE PSF NOI $453.94 $288,000

• New 10-year true NNN lease featuring 10% increases every 5 years • High visibility along Richmond Avenue where average traffic counts exceed 44,594 VPD • Strong neighboring retailers include Trader Joe’s, Target, Costco, Macy’s, and DICK’S Sporting Goods • Located 3 minutes from CUNY College of Staten Island, home to over 9,585 students • More than 537,000 people with average household incomes 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 exceeding $98k within a 5-mile radius 21 information. Buyer must verify the information and bears all risk for any inaccuracies. BAYONNE Aerial - Staten Island, NY MEDICAL NEWARK CENTER LIBERTY INTL KEAN UNION AIRPORT UNIVERSITY COUNTY COLLEGE GOLF 95 24,303 COURSE 269,326 VPD VPD

NJ 440 MEDCARE

MANHATTAN RICHMOND UNIVERSITY 25 MILES MEDICAL CENTER 131,926 VPD STATEN ISLAND UNIVERSITY HOSPITAL 278 GOLF RICHMOND COURSE UNIVERSITY MEDICAL CENTER

95 WAGNER LINDEN BROOKLYN COLLEGE AIRPORT 247,728 COLLEGE VPD RICHMONDAVENUE

278 CUNY COLLEGE OF STATEN ISLAND 142,609 VPD

STATEN ISLAND GOLF UNIVERSITY COURSE HOSPITAL 92,784 440 VPD

95 EMPIRE AVENUE STATE RICHMOND STATEN COLLEGE GOLF ISLAND COURSE UNIVERSITY HOSPITAL 52,000 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 VPD 22 information. Buyer must verify the information and bears all risk for any inaccuracies. Retail Aerial - Staten Island, NY

ELEMENTARY SCHOOL MIDDLE SCHOOL

RICHMOND AVENUE 52,000 VPD

MEDICAL OFFICE

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. Buyer must verify the information and bears all risk for any inaccuracies. 23 STATEN ISLAND Income & Expense - Staten Island, NY

PRICE $4,267,000 Price Per Square Foot: $453.94 Capitalization Rate: 6.75% Total Rentable Area (SF): 9,400 Lot Size (AC): 0.49 STABILIZED INCOME PER SQUARE FOOT Scheduled Rent $30.64 $288,000 Effective Gross Income $30.64 $288,000 LESS PER SQUARE FOOT Taxes NNN $0.00 Insurance NNN $0.00 Total Operating Expenses NNN $0.00 EQUALS NET OPERATING INCOME $288,000

TENANT INFO LEASE TERMS RENT SUMMARY

CURRENT MONTHLY YEARLY MONTHLY YEARLY TENANT NAME SQ. FT. RENT RENT RENT RENT/FT RENT/FT

Fortunoff Backyard Store 9,400 1 5 $288,000 $24,000 $288,000 $2.55 $30.64

Staten Island, NY 6 10 $26,400 $316,800 $2.81 $33.70

TOTALS: 9,400 $288,000 $24,000 $288,000 $2.55 $30.64

9,400 0.49 RENTABLE SF ACRES

CUNY COLLEGE OF STATEN ISLAND

44,594 VPD ROCKLAND AVENUE

MIDDLE SCHOOL

RICHMOND AVENUE 14,549 VPD

16,471 RICHMOND HILLVPD ROAD

PYLON SIGN

HIGH SCHOOL

GOLF COURSE RICHMOND AVENUE

2018 26,049 178,608 537,076

2023 26,722 182,406 550,166 BROOKLYN (17 MILES) 2018 HH INCOME 1-MILE 3-MILES 5-MILES Average $104,161 $105,391 $98,008 Median $86,489 $85,453 $76,553 STATEN ISLAND (NYC)

STATEN ISLAND, NY is one of five boroughs that comprise the city of New York. Located across the harbor from Brooklyn and Manhattan, Staten Island is easily reachable via the Staten Island Ferry, the Verrazzano-Narrows Bridge from Brooklyn, and three bridges connecting the island to New Jersey.

Staten Island is renowned for its museums, historic landmarks, beaches and parkland — including New York City’s largest forest preserve in the Staten Island Greenbelt. THE AVERAGE HOUSEHOLD The Island offers small town living while being part of one INCOME WITHIN A 3-MILE RADIUS of the world’s largest cities. IS OVER $105K

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. Buyer must verify the information and 27 bears all risk for any inaccuracies. We’d love to hear from you.

JOE CACCAMO [email protected] PH: 415.274.7394 CA DRE# 01191110

DAVID LUCAS RICHARD WEISS JULIUS M. FEINBLUM REAL ESTATE, INC. JULIUS M. FEINBLUM REAL ESTATE, INC. [email protected] [email protected] PH: 516.844.8890 PH: 516.844.8890

NY LIC.# 40LU0891694 NY LIC.# 30WE0850568

JULIUS M. FEINBLUM REAL ESTATE, INC.

NJ LIC.# 9483799

CAPITAL PACIFIC COLLABORATES. CLICK HERE TO MEET OUR SAN FRANCISCO TEAM:

ZEB RIPPLE CHRIS KOSTANECKI CHRIS PETERS

JOHN ANDREINI JOE CACCAMO DAVE LUCAS

JUSTIN SHARP RICK SANNER JACK NAVARRA

ZANDY SMITH JUSTIN STARK

SFO. PDX. SEA. CAPITALPACIFIC.COM