Representative Photo

Ormond Beach | FL

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OFFERING MEMORANDUM 7-ELEVEN 1204 Ocean Shore Blvd Ormond Beach, FL 32176

Representative Photo Table of Contents TABLE OF CONTENTS

03 EXECUTIVE OVERVIEW 04 FINANCIAL OVERVIEW

05 PROPERTY OVERVIEW 10 AREA OVERVIEW

LISTED BY

Chad Kurz ARON CLINE MATT COATES SVP & National Director | Lic # 01911198 (CA) Calvin Short Senior Vice president & Senior Director Associate SVP & Senior Director | Lic # 01927216 (CA) DIRECT 949.432.4509 DIRECT 949.432.4505 Josh Bishop MOBILE 818.632.0233 MOBILE 714.366.1236 VP & Director | Lic # 688810 (TX) [email protected] [email protected] LIC # 01904371 (CA) LIC # 01980718 (CA) BROKER OF RECORD kyle matthews LIC # CQ1052263 (FL)

| 2 ExecutiveFort Myers Overview | FL

Investment Highlights »» New Construction NNN 7-Eleven – Brand new 15-year Lease– Minimal Landlord Responsibilities (Roof/Structure) – New 15-year roof warranty

»» 10% rental increases every 5 years – strong hedge against inflation

»» Lease secured by one of the most recognizable Retail operators in the World – Investment grade credit tenant with an AA- rating by Standard & Poor’s

»» 7-Eleven operates, franchises, and licenses more than 70,000 stores throughout 18 Countries. Over 11,000 are located in North America with heavy expansion plans to get to 20,000 stores by 2020

»» High Quality Construction – Property construction will be complete in mid-2018 and will be up-to-date with 7-Eleven’s current prototype

»» Out parceled to a Publix Supermarket Shopping Center, which is the dominant grocery store chain in

»» 7-Eleven is Ranked #1 on Entrepreneur magazine 2017 Top Global Franchises list

»» Densely Populated Area with Robust Demographics – The area has had approximately 5.00% population growth since 2010

»» Over 10 condominium complexes located within less than a half mile from the site

»» Average Household Income is $67,858 within a 5-mile radius and $76,902 within a 3-mile radius

»» Strong Traffic Counts – The subject property is located on Ocean Shore Blvd/, which is a major state road that runs along the Atlantic Ocean, from to Fernandina Beach. State Road A1A has a traffic count of approximately ±17,000 vehicles per day

»» The Subject Property is less than 13 miles from Daytona Beach International Airport and one block from the beach

3 | PROPERTYFort Myers Overview | FL

Representative Photo Annualized Operating Data

Monthly Rent Annual Rent Increases Cap Rate Year 1-5 $18,244 $218,922 4.90%

Year 6-10 $20,068 $240,814 10% 5.39%

Year 11-15 $22,075 $264,896 10% 5.93%

Option 1 $24,282 $291,385 10% 6.52%

Option 2 $26,710 $320,524 10% 7.18%

Option 3 $29,381 $352,576 10% 7.89%

Option 4 $32,319 $387,834 10% 8.68%

Tenant Summary Investment Summary

Tenant Trade Name 7-Eleven »» LIST PRICE $4,467,000 Type of Ownership Fee Simple Lease Guarantor Corporate Guarantee »» NOI (YEAR 1) $218,922 Lease Type Modified NNN »» CAP RATE (YEAR 1) 4.90% Roof and Structure Landlord Responsible (15-year warranty) Original Lease Term 15 Years »» TOTAL BUILDING AREA ± 2,940 SF Rent Commencement Date July 2, 2018 Lease Expiration Date June 30, 2033 »» TOTAL LAND AREA ± 0.95 Acres Term Remaining on Lease ±15 Years Increase 10%, Every 5 Years Options Four, 5-Year

| 4 PROPERTYFort Myers Overview | FL

Representative Photo

The Offering Tenant Overview PROPERTY NAME 7-Eleven »» Company Name »» Year Founded »» Headquarters Property Address 1204 Ocean Shore Blvd 7-Eleven 1927 Irving, TX Ormond Beach, FL 32176 »» Ownership »» Industry »» Website SITE DESCRIPTION Private Convenience Store www.7-eleven.com Number of Stories One 7‑Eleven is the world’s largest convenience store chain operating, franchising and licensing more than 70,000 stores in 18 2018 Year Built countries and is also one of the nation’s largest independent gasoline retailers. As the pioneer of the convenience store GLA ±2,940 SF concept, 7-Eleven strives to meet the needs of convenience-oriented guests by providing a broad selection of fresh, high- quality products and services at everyday fair prices, speedy transactions and a clean, friendly shopping environment. Each Lot Size ±0.95AC (41,382 SF) store maintains a selection of approximately 2,500 different products and services tailored to meet the needs and Type of Ownership Fee Simple preferences of its local clientele. Landscaping Professional Topography Generally Level #1 TOP C-STORE #3 Entrepreneur’s Forbes’ Top 20 Franchises Magazine Top Global Team Members to Start Franchises List

5 | Site Plan

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LYNNHURST DR

| 6 OrmondLocation Beach | FL

Subject Property

Halifax River

Ormond Beach Middle School

Oceanside Country Club

North

7 | Ormond Beach | FL

Beach House

Ocean Shore Blvd ±17,000 ADT

Sun Deck

Indies House

Gemini Condos

Subject Property

Ed’s Haley’s Repair Seawinds Condos

Surfside Club Condos

| 8 OrmondLOCAL Beach |MAP FL

Subject Property

9 | Area OverviewOrmond Beach | FL

Demographics

POPULATION 1 - MILE 3 - MILE 5 - MILE

2023 Projection 4,873 20,380 53,856

2018 Estimate 4,700 19,614 51,561

2010 Census 4,535 18,772 48,864

Growth 2018-2023 3.68% 3.90% 4.45%

Growth 2010-2018 3.64% 4.49% 5.52%

HOUSEHOLDS 1 - MILE 3 - MILE 5 - MILE

2023 Projection 2,600 9,723 25,781

2018 Estimate 2,471 9,318 24,576

2010 Census 2,302 8,845 23,073

Growth 2018-2023 5.22% 4.35% 4.90%

Growth 2010-2018 7.34% 5.35% 6.51%

INCOME 1 - MILE 3 - MILE 5 - MILE

2018 Est. Average $69,897 $76,902 $67,858 Household Income

| 10 Ormond Beach | FL

ORMOND BEACH, FL Ormond Beach is located in the northern neighborhood of Daytona Beach. Home to Tomoka State Park, this picturesque beach town is part of the Deltona-Daytona Beach-Ormond Beach MSA. It is a fashionable winter resort center, while still being a prime destination for the summer. The community is working on several developments that will help the area grow, as well as, be recognized by visitors and potential residents.

The most recent development is adopting the Energy Efficiency and Conservation Strategy. By working to update old policies and procedures that help reduce carbon emissions and energy consumption, the community can do their part to help better the environment.

LOCAL ECONOMY Ormond Beach is an active commercial and residential market in the MSA. The Florida Economic Development Council (FDEC) has recognized Ormond Beach for outstanding economic development promotional material. Their most successful promotional campaign, “Doing Business in Ormond Beach,” has brought in organizations ORMOND BEACH HEADQUARTERS ranging from small business to nationwide corporations. The local government recognizes that taking care of businesses in their area, no matter what size, is the key to a healthy economy. »» Costa Del Mar »» First Green Bank »» Florida Production Engineering »» Hawaiian Tropic »» ABB Thomas & Betts »» Hudson Technologies »» Microflex Inc. »» U.S. Food Services

11 | 7-Eleven

Daytona Beach, FL Located in Volusia County, Daytona Beach is known as one of the top summer destinations for its beautiful beaches and the headquarters for NASCAR. Thousands of NASCAR fans come from all over the world to attend the season-opening Daytona 500. There are also great golf courses, recreational activities, and night life.

The area’s largest economic sector is tourism and manufacturing. Daytona Beach has a variety of shopping options and many high- end stores. Some corporate headquarters in the area include Brown & Brown, Halifax Media Group, International Speedway Corporation, and much more.

| 12 Ormond Beach | FL

150 INTERNATIONAL COMPANIES

$33 BILLION Orlando, FL IN TOURISM At the center of the Orlando metropolitan area, Orlando is one of the most visited cities in the United States. In 2015, more than 66 million people visited Orlando. The city offers everything when it comes to entertainment. The city was originally nicknamed “The City Beautiful,” because of Lake Eola. In recent years, the city received the nickname of “The Theme Park Capital of the World” as it is home to seven of the top theme parks in the world. From theme parks and sunshine to continuously evolving dining scenes, Orlando is the only destination where you can enjoy it all together. Orlando International Airport Orlando’s major airport is Orlando International Airport (MCO), located within 15-miles (24-kilometers) of the Orange 7TH-LARGEST County Convention Center and major attractions. With 38 scheduled airlines and two charters, MCO provides RESEARCH PARK nonstop service to 76 destinations in the U.S. and 32 international cities. More than 35 million passengers use Orlando International Airport annually; making MCO the third busiest airport in the U.S.

13 | Ormond Beach | FL

WALT DISNEY WORLD $18.2 BILLION Annual Economic Impact

19 MILLION Visitors Per Year

Economy

The Orlando area is a large industrial and hi-tech center. It is nationally recognized for their innovative techniques in digital media, aviation, aerospace, agricultural technology, and software design. The city holds over 150 international companies that represent 20 different countries. Orlando is also the 7th-largest research park in the country. Central Florida Research Park is home to over 120 companies that employ more than 8,500 people. It is also the hub of the nation’s military simulation and training programs.

Lockheed Martin has a large manufacturing facility for missile systems, aeronautical craft, and other high-tech research. Many notable engineering firms work with the different branches of the U.S. Army to create innovative technology. The city is also a large home base for Darden Restaurants, Olive Garden, and LongHorn Steakhouse.

The film, television, and entertainment industry is another large sector for Orlando’s economy. Universal Studios, Disney’s Hollywood Studios, UCF College of Arts and Humanities, Full Sail University, and Florida Interactive Entertainment Academy are only a few studious and teaching programs that are located within Orlando. The electronic gaming industry has also becoming a growing presence. Everything from film, show production, computer animation, video game design, and much more is taught and executed extensively in Orlando.

| 14 14 | Ormond Beach | FL

Confidentiality Agreement & Disclaimer

This Offering Memorandum contains select information pertaining to the business and affairs 7-Elevenof located at 1204 Ocean Shore Blvd, Ormond Beach, FL (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1 . The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

15 | Ormond Beach | FL 7-ELEVEN 1204 Ocean Shore Blvd Ormond Beach, FL 32176 LISTED BY ARON CLINE Senior Vice President & Senior Director Chad Kurz DIRECT 949.432.4509 SVP & National Director | Lic # 01911198 (CA) MOBILE 818.632.0233 Calvin Short [email protected] SVP & Senior Director | Lic # 01927216 (CA) LIC # 01904371 (CA) Josh Bishop VP & Director | Lic # 688810 (TX) MATT COATES Associate BROKER OF RECORD DIRECT 949.432.4505 kyle matthews MOBILE 714.366.1236 LIC # CQ1052263 (FL) [email protected] LIC # 01980718 (CA)

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| Offering 16 Memorandum