MIAMI SERVICE CENTER 8880 NW 20TH STREET | DORAL, FLORIDA

CONFIDENTIAL OFFERING SUMMARY

AN EXCLUSIVE OPPORTUNITY TO ACQUIRE AN IN-FILL, LIGHT INDUSTRIAL ASSET IN DORAL, FLORIDA INVESTMENT HIGHLIGHTS

49,384 Square Foot, In-Fill, Light-Industrial, Research & Development Asset

Stablized Income Stream — 100% Occupied with Nine Tenants

Value Creation via Lease Rollover

Fully Built-Out In-Fill Market

Recently Renovated — Exterior Façade & Interior of Tenant Spaces

Competes Well Against Multi-Story Office

High Market Occupanies

Discount to Replacement

Staggered Rollover

Positive Macro Economics

Excellent Proximity to Logistics Nodes and Amenity Base

2 EXECUTIVE SUMMARY HFF has been retained to exclusively offer qualified investors the opportunity to acquire the Service Center (the “Property”, “Asset”, or the “Building”), a 49,384 square foot, in-fill, light-industrial, research & development Asset in the coveted Airport West submarket of Miami, Florida. The Building is located minutes from Miami International Airport, proximate to restaurants, hotels, shopping and commercial businesses. The Property is fully occupied with nine tenants in a variety of industries.

EXECUTIVE SUMMARY 3 PROPERTY SUMMARY Address 8880 NW 20th Street, Doral, FL Industrial Type Light Industrial / R& D Folio 35.3033.010.0250 Land 161,280 SF (3.7 Acres) Year Built 1987 Office (%) 55 Lab Space (%) 34 Warehouse (%) 11 NRA (SF) 49,384 Clear Height (FT) 16 Loading Rear - Street Level Roll-up Doors 18 Parking Spaces 178 Parking Ratio 3.60

INVESTMENT HIGHLIGHTS

This Asset offers investors an opportunity to purchase a light industrial asset in one of the most preferred geographic locations in Florida. Value-add returns are achieved through a variety of opportunities as outlined following with an emphasis on raising rental rates on tenants which are below market.

4 EXECUTIVE SUMMARY STABILIZED INCOME STREAM The property is currently 100% occupied with nine (9) tenants and no rollover exposure until April 2019. This assures a new owner will have a solid year and a half of income while they implement a tenant renewal strategy.

VALUE CREATION VIA LEASE ROLLOVER Most of the tenants that occupy Miami Service Center are below the recent lease rates achieved by current Ownership. On average, the current leases are nearly 7.5% below the market rate of $11.75 NNN giving the new owner an opportunity to increase rents upon rollover.

FULLY BUILT-OUT IN-FILL MARKET Miami Service Center is situated less than 2 miles west of Miami International Airport within the supply constrained City of Doral. The Airport West submarket is impressively dense with 45 million square feet of industrial and showroom uses. In addition, nearly 3,700 high-intensity multifamily units are integrated within the same area, which provides a sound employee base to support the showroom/retail/flex supply.

EXECUTIVE SUMMARY 5 RECENTLY RENOVATED Current ownership has recently spent a considerable amount of capital to transform the property from a traditional “flex” property to a highly functional single-story office/research & development facility. The business plan successfully increased net rental rates, which are now approaching $12.00 per square foot. Upgrades include exterior façade improvements, as well as considerable amounts devoted to the interior of tenant spaces.

COMPETES WELL AGAINST MULTI-STORY OFFICE The Asset is a perfect setting for corporate users needing a convenient location for employees, but not a high profile, multi-story office building with high end amenities and a loss factor. Positioning space on a useable SF vs. a rentable SF yields users incredible savings. In the Airport West submarket alone, there are 143 multi-story office buildings with 7.8M SF and an average asking lease rate of nearly $29.00 Gross.

HIGH MARKET OCCUPANCIES The Airport West submarket is one of the most in-fill, centrally located areas in all of . The fundamentals within this submarket are tremendous with industrial & flex occupancy at an unbelievable rate of 96.2%. Current asking rates have a compounded annual growth rate of over 4% for the past 7 years.

6 EXECUTIVE SUMMARY DISCOUNT TO REPLACEMENT A parcel the Property’s size in the Doral market would trade above $30 per land foot or $4.8M. Hard and soft costs to replicate this building (including office and lab build-out) would be $120 per square foot or $6M. Total cost to replicate would be more than $10.7M or $218 per square foot. At the expected trading price this Building will be purchased at a significant discount to its replacement cost.

CALENDAR YEAR ROLLOVER SCHEDULE MIAMI AIRPORT WEST INDUSTRIAL & FLEX VACANCY MIAMI AIRPORT WEST INDUSTRIAL & FLEX NNN RENT OVERALL HISTORICAL MIAMI AIRPORT WEST INDUSTRIAL DELIVERIES $ PSF SF $12.00 20,000 100% 1,000,000 900,000 STAGGERED ROLLOVER 18,000 90% 12% $11.00 800,000 16,000 80% $10.00 The rollover schedule outlined below has no large 14,000 70% 700,000 9% $9.00 turnover in any given calendar year. New ownership can 12,000 60% 600,000 $8.00 10,000 50% 500,000 concentrate on raising rental rates at expiration without 6% $7.00 400,000 fear of losing a considerable percentage of their overall 8,000 40% 300,000 6,000 30% $6.00 tenancy. This will assist with lender financing, as well. 3% 4,000 20% 200,000 $5.00 2,000 10% 100,000 0% $4.00 0 0% - 2017 2018 2019 2020 2021 2022 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Vacant Percent % Total Deliveries SF 17 Year Average

EXECUTIVE SUMMARY 7 POSITIVE MACRO-ECONOMICS One of the largest demand drivers of small bay industrial projects similar to Miami Service Center is population growth. Miami-Dade County has experienced an average 1.4% per annum growth rate over the past 16 years, greater than that of the nation. This trend is expected to continue with an additional 6.7% population expansion through 2022.

EXCELLENT PROXIMITY TO LOGISTICS NODES AND AMENITY BASE Tenants have access to the and Miami International Mall, which are within a seven minute drive from the Property and numerous retail establishments and restaurants are within blocks.

Approximate travel times to major destinations follow:

MAJOR DESTINATIONS

Distance from Property Demand Driver Miles Minutes Shops at Downtown Doral Dolphin Expressway (SR 836) 0.8 4 Florida's Turnpike 1.2 5 Palmetto Expressway (SR 826) 1.9 7 Miami International Airport 2 8 Miami International Mall 3 10 Dolphin Mall 3.1 13

8 EXECUTIVE SUMMARY MIAMI INTERNATIONAL MALL DOLPHIN MALL

FACTORY STORE

th Street SW 8

NW 107 th Avenue

836 The way car buying should be. NW 97 th Avenue

NW 25

th Street

th th Street NW 87 Avenue

NW12 th Dolphin Expressway NW 20 NW 89 Place NW 23

th th Street Street

Terrace

th NW 88 th Court

NW 21st Terrace

NW 18

NW 87 th Avenue

AREA OVERVIEW MARKET OVERVIEW FINANCIAL ANAYSIS TENANCY OVERVIEW PROPERTY OVERVIEW EXECUTIVEEXECUTIVE SUMMARY SUMMARY 9 MIAMI GARDENS

1 823

MIAMI LAKES 95 OPA-LOCKA EXECUTIVE INTERNATIONAL 27 AIRPORT OPA-LOCKA 75

826 MIAMI SPRINGS HIALEAH GARDENS

823 HIALEAH

1

DOWNTOWN DORAL MIAMI SPRINGS

NW 87TH AVE 112 NW 36TH ST 195 DORAL 826 MIAMI BEACH 95

395 836 MIAMI CBD PORTMIAMI WEST MIAMI 41

CORAL GABLES

All of us at HFF remain immediately available to assist with any questions on the Property or the offering process, arrange tours, or help in any other way necessary. Please contact us at the numbers noted below.

hfflp.com MIAMI SALES TEAM

1450 MARTY BUSEKRUS HERMEN RODRIGUEZ TRACEY GOO MAITE DOMINGUEZ MAXX CARNEY Suite 2950 Director Senior Managing Director Associate Director Associate Associate Director Miami, FL 33131 [email protected] [email protected] [email protected] [email protected] [email protected] T: (305) 448-1333 (305) 448-5969 (305) 448-5332 (305) 421-6548 (305) 913-5551 (305) 913-5553 F: (305) 448-6767 Investment Sales Investment Sales Investment Sales Investment Sales Financing

Holliday Fenoglio Fowler, L.P. a Florida licensed real estate broker. Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 24 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.

©2017 HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 24 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.