CORAL GABLES, FLORIDA BassettRepresentative Photo Furniture Site Rendering Asking Price: $11,000,000 Michael Zimmerman 919.391.9901 Cap Rate: 5.00% [email protected] BOSTON, MA | CHAPEL HILL, NC | CHARLOTTE, NC | JUPITER, FL | LOS ANGELES, CA | PITTSBURGH, PA | ATLANTICRETAIL.COM Representative Photo CENTRAL, VISIBLE LOCATION The Property is prominently positioned in Coral Gables, Florida at the northwest corner of the signalized intersection of South Dixie Highway and South Le Jeune Road/SW 42nd Avenue (102,500 combined ADT). The Property is 2.3 miles from The University of Miami campus, and is within close proximity to all the major tourist attractions found in Downtown Miami. STRONG AREA DEMOGRAPHICS Approximately 438,404 people live within five miles of the Property, while the Greater Miami Area has an estimated population of 6,066,387 as of 2016. The average household income within one mile exceeds $121,000. WITHIN NOTABLE TOURISM MARKET Metropolitan Miami is a major tourist hub in the American South for both domestic and international visitors, ranking No. 2 in the United States after New York City. For more than two decades, the Port of Miami has been the No. 1 cruise ship passenger port in the world and is Miami’s second largest economic engine, supporting more than 207,000 jobs and averaging an annual $27 billion impact on South Florida’s economy. 438,404 $9.95 B EST POPULATION AVG HH SPENDING IN 5-MILE RADIUS IN 5-MILE RADIUS $80,047 77,500 AVG HH INCOME ADT ALONG SOUTH IN 5-MILE RADIUS DIXIE HIGHWAY BASSETT FURNITURE | INVESTMENT HIGHLIGHTS ATLANTICRETAIL.COM | 1 Representative Photo Bassett Furniture The Bassett Furniture brand of style, comfort, and value has been sought after and trusted for over 100 years, making it one of the most recognizable furniture brands in America. Bassett Furniture’s guiding principle has always been that high-quality, stylish furniture does not need to be expensive and should be available to everyone. The Company currently operates more than 100 retail locations in the United States, Puerto Rico, and Canada, and is rapidly expanding its omni-channel footprint thanks to its website, BassettFurniture.com. The Company is passionate about developing fashionable, innovative home furnishings at a great value, while also offering unique, custom solutions tailored towards the needs of each individual customer. Bassett Furniture Industries, Inc. is publicly traded on the NASDAQ Stock Exchange under the ticker symbol “BSET” and, during the second quarter of 2017, consolidated Company sales were up by seven percent at $114.1 million. This increase has provided the necessary leverage for the Company to grow operating profit by 30 percent during the remainder of the 2017 fiscal year. BASSETT FURNITURE | TENANT PROFILE ATLANTICRETAIL.COM | 2 Representative Photo Lease Summary ADDRESS 425 South Dixie Highway Coral Gables, FL 33146 TENANT Bassett Furniture GUARANTOR Corporate ASKING PRICE $11,000,000 CAP RATE 5.00% BUILDING ± 10,027 SF LAND SIZE ± 0.57 acres YEAR BUILT 1954 (Renovated 2014) COMMENCEMENT July 15, 2018 EXPIRATION July 31, 2031 LEASE TERM 13 Years ANNUAL RENT $550,000 ($54.85/SF) RENT INCREASES 10% Every 5 Years OPTIONS 2 x 5-Year Options With 10% Increases LEASE TYPE NN LANDLORD Roof, Structure & Rent Schedule Foundation YEARS ANNUAL RENT INCREASE 1–5 (Base Term) $550,000 ($54.85/SF) None 6-10 (Base Term) $605,000 ($60.34/SF) 10% 11-13 (Base Term) $665,500 ($66.37/SF) 10% 14-18 (Option 1) $732,500 ($73.05/SF) 10% 19-23 (Option 2) $805,255 ($80.31/SF) 10% BASSETT FURNITURE | LEASE SUMMARY ATLANTICRETAIL.COM | 3 MAJOR RENOVATIONS The tenant is investing over $1 million towards renovating the Property. Construction is currently underway on the building’s interior. Rent will commence in July 2018. BASSETT FURNITURE | SITE PLANS ATLANTICRETAIL.COM | 4 GRAND AVENUE: 16,300 ADT M-PATH RAIL-TRAIL KMP FURNITURE PONCE DE LEON BOULEVARD: 21,200 ADT SITE SOUTH DIXIE HIGHWAY: 77,500 ADT CHINA CABINETS ROYAL RUG GALLERY SOUTH LE JEUNE ROAD: 27,000 ADT 27,000 ROAD: JEUNE LE SOUTH BASSETT FURNITURE | MARKET AERIAL ATLANTICRETAIL.COM | 5 SHOPS AT MERRICK PARK SOUTHWEST 4TH STREET: 46,500 ADT BRAZILIAN CORAL GABLES CONSULATE HIGH SCHOOL RIVIERA GOLF COURSE GRAND AVENUE: 16,300 ADT M-PATH RAIL-TRAIL DOUGLAS ROAD: 15,000 ADT 15,000 ROAD: DOUGLAS PONCE DE LEON BOULEVARD: 21,200 ADT SOUTH LE JEUNE ROAD: 27,000 ADT 27,000 ROAD: JEUNE LE SOUTH SOUTH DIXIE HIGHWAY: 77,500 ADT BASSETT FURNITURE | MARKET AERIAL ATLANTICRETAIL.COM | 6 INTERSTATE 95 230,000 ADT NW 36TH STREET 72,500 ADT 6 INTERSTATE 395 130,500 ADT MIAMI INTERNATIONAL AIRPORT 8 7 4 DOWNTOWN MIAMI, FL 9 5 PALMETTO EXPRESSWAY INTERSTATE 95 261,000 ADT 217,000 ADT 3 AREA ATTRACTIONS SOUTH DIXIE HWY. 1. Watsco Center • 1.7 miles 77,500 ADT 2. The University of Miami • 2.3 miles 3. Mercy Hospital • 3.8 miles 4. Marlins Park • 5.4 miles 2 5. Downtown Miami • 6.1 miles 6. Miami International Airport • 6.1 miles 1 7. American Airlines Arena • 7.0 miles 8. The University of Miami Hospital • 8.0 miles 9. Mall of the Americas • 8.2 miles BASSETT FURNITURE | MARKET AERIAL ATLANTICRETAIL.COM | 7 HOME OF THE “MIRACLE MILE” Located four miles from the Miami International Airport, the “City Beautiful” is a pedestrian-friendly destination that has approximately 140 upscale dining establishments and gourmet shops, numerous national luxury retailers and notable historic landmarks including the Venetian Pool, Douglas Entrance and the Miami Biltmore Hotel. BASSETT FURNITURE | MARKET OVERVIEW ATLANTICRETAIL.COM | 8 AFFLUENT, GROWING COMMUNITY Over the past three decades, the city of Coral Gables has grown to approximately 49,631 residents, and the city is now home to approximately 155 multinational companies and corporations—including Bacardi and Capital Bank Financial—as well as 26 different foreign consulate offices. BASSETT FURNITURE | MARKET OVERVIEW ATLANTICRETAIL.COM | 9 CLOSE PROXIMITY TO MAJOR UNIVERSITY The University of Miami is a private research university with more than 16,000 students from across the globe. In 2016, the U.S. News & World Report ranked the university at No. 44 on its list of the “Best Colleges” in the U.S. The university is currently engaged in more than $324 million in research, and the total economic impact of the university on the surrounding communities of Coral Gables and Miami is estimated at more than $6 billion as of 2011. BASSETT FURNITURE | MARKET OVERVIEW ATLANTICRETAIL.COM | 10 WITHIN PROMINENT METRO AREA Coral Gables sits within Miami-Dade County, the most populous county in Florida (population 2,712,945 as of 2016) and the seventh most populous county in the United States. Miami- Dade County is included in the Miami-Fort Lauderdale-West Palm Beach, FL Metropolitan Statistical Area (“Greater Miami Area”) along Florida’s Gold Coast. The Greater Miami Area had a population of 6,066,387 as of 2016 and, according to a 2009 UBS study of 73 major world cities, Miami is the world’s fifth richest city in terms of overall purchasing power. BASSETT FURNITURE | MARKET OVERVIEW ATLANTICRETAIL.COM | 11 Demographics DEMOGRAPHICS 1 MILE 3 MILES 5 MILES DEMOGRAPHICS 1 MILE 3 MILES 5 MILES Estimated Population 18,723 158,852 438,404 Est. White 73.2% 85.9% 87.1% 2022 Projected Population 19,761 166,442 459,717 Est. Black 19.8% 7.6% 5.8% 2010 Census Population 15,866 146,093 404,552 Est. Asian or 3.2% 2.5% 1.8% Pacific Islander 2000 Census Population 15,330 137,125 378,341 Est. American Indian 0.1% 0.1% 0.2% Projected Annual Growth (2017–2022) 1.1% 1.0% 1.0% or Alaska Native Historical Annual Growth (2000–2017) 1.3% 0.9% 0.9% Est. Other Races 3.7% 3.9% 5.2% Estimated Households 6,781 62,112 168,575 RACE Est. Hispanic 8,447 105,215 345,224 2022 Projected Households 7,132 64,759 175,726 Population POPULATION 2010 Census Households 5,712 57,309 155,521 Est. Hispanic 45.1% 66.2% 78.7% Population 2000 Census Households 5,657 53,803 142,624 2022 Projected 46.3% 66.9% 79.1% Projected Annual Growth (2017–2022) 1.0% 0.9% 0.8% Hispanic Population Historical Annual Growth (2000–2017) 1.2% 0.9% 1.1% 2010 Hispanic 42.5% 65.0% 78.3% Est. HH Income $200,000+ 20.0% 13.7% 8.6% Population Est. HH Income $150,000-$199,999 9.1% 6.9% 4.5% Est. HH Income $100,000–$149,999 13.7% 12.8% 10.0% Est. HH Income $75,000-$99,999 9.1% 9.7% 8.6% Est. HH Income $50,000–$74,999 12.4% 14.5% 14.3% Est. HH Income $35,000–$49,999 8.5% 11.5% 12.4% INCOME Est. HH Income $25,000–$34,999 7.7% 8.9% 10.9% Est. HH Income $15,000–$24,999 7.6% 9.3% 13.1% Est. HH Income Under $15,000 11.9% 12.6% 17.6% Est. Average Household Income $121,695 $108,216 $80,047 Est. Median Household Income $99,605 $77,321 $58,131 BASSETT FURNITURE | DEMOGRAPHICS ATLANTICRETAIL.COM | 12 Confidentiality & 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 Atlantic Retail Investment Services and should not be made available to any other person or entity without the written consent of Atlantic Retail Investment Services. 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.