RACEWAY Potential Accelerated Depreciation Tax Benefit* 9.23% Tax Equivalent Yield* 1040 Golfair Blvd Jacksonville, FL 32209 Offering Memorandum New Listings Posted Daily at FranklinSt.com CONFIDENTIALITY AGREEMENT This is a confidential Offering Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest into the acquisition of the Subject Property. Visit Us at FranklinSt.com This Offering Memorandum contains selected information pertaining to the Property and does not purport to be a representation of state of affairs of the Owner or the Property, to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition, and other factors beyond the control of the Owner or Franklin Street Real Estate Services, LLC. Therefore, all projections, assumptions, and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to all interested and qualified prospective purchasers. Neither the Owner or Franklin Street Real Estate Services, LLC. , nor any of their respective directors, officers, affiliates or representatives are making any representation or warranty, expressed or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Offering Memorandum or use of its contents; and you are to rely solely on your own investigations and inspections of the Property in EXCLUSIVELY LISTED BY evaluating a possible purchase of the real property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review JAMES BRONSON REA of this Offering Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Offering SENIOR DIRECTOR 407.288.7222 Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property [email protected] have been fully executed, delivered, and approved by the Owner and any obligations therein have been satisfied or waived. By receipt of the Offering Memorandum, you agree that this Offering Memorandum and its contents are of a confidential GREG MATUS nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Offering Memorandum or SVP, INVESTMENT SALES 954.671.1821 any of its contents to any other entity without the prior written authorization of the Owner or the Franklin Street Real Estate [email protected] Services, LLC. Furthermore, you agree not to use this Offering Memorandum or any of its contents in a manner detrimental to the interest of the Owner or Franklin Street Real Estate Services, LLC. In this Offering Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are so advised and expected to review all such summaries and other documents of whatever nature independently and not to rely on the contents of this Offering Memorandum in any manner. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR FRANKLIN STREET REAL ESTATE SERVICES, LLC AGENT FOR MORE DETAILS. INVESTMENT HIGHLIGHTS • Corporate Tenant • Busy I-95 Exit station • Potential for 9.23% Tax Equivalent Yield for 35% tax bracket* • Income Tax-Free State • Recession & Amazon Resilience Asset Class • Near Golf Courses, Schools, Government Offices, & Dense Residential INVESTMENT SUMMARY Franklin Street is pleased to present this Corporate RaceWay investment property located in a Jacksonville, Florida which is in an income tax-free state with a non-stop flight airport. This convenience & gas store is well located right off the busy Interstate 95 exit ramp strategically located in the dense downtown residential market and across from a golf course, school, and a government office. This location has been an established fixture in the community operating for over 19 years since opening in 2000. RaceWay is owned and operated by RaceTrac corporate. RaceTrac is based in Atlanta, Georgia since 1976 and was founded in 1934 in St. Louis over 85 years ago. They operate more than 670 company-owned and third-party contract operated stores under RaceTrac and RaceWay names in 12 southern states where the founder Mr. Carl Bolch pioneered the concept of self-service gasoline. RaceWay branded locations can be found in Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Texas, and Virginia and RaceTrac can be found in Florida, Georgia, Louisiana, Texas, Mississippi. With over $9 Billion in revenues and 7,450 employees, RaceTrac combined with RaceWay is one of the largest privately-held convenience store operators and 3rd largest private company in Georgia. The lease remaining is a 8.6 year NNN lease with the potential to accelerate depreciation benefit. Priced at only $3,610,000, this could be a great corporate asset with a higher tax-equivalent return! RACEWAY | JACKSONVILLE, FL 32209 | OFFERING MEMORANDUM 3 MAJOR SURROUNDING EMPLOYERS • Naval Air Station - 25,240 employees • Duval County Public Schools - 14,480 employees • Naval Station Mayport - 9,000 employees • City of Jacksonville - 8,820 employees • Baptist Health - 8,270 employees • Bank of America Merrill Lynch - 8,000 employees • Florida Blue - 6,500 employees • Mayo Clinic - 4,970 employees • Citibank - 4,200 employees • JP Morgan Chase - 4,200 employees SURROUNDING TRAFFIC GENERATORS • I-95 Exit Ramp • Publix Shopping Center • Dense Residential • A. Phillips Randolph Career Academies • Clanzel T Brown Pool & Tennis Park • Brentwood Golf Course • The First Tee of North Florida Golf Course • Jacksonville Housing Management Division RACEWAY | JACKSONVILLE, FL 32209 | OFFERING MEMORANDUM 4 OFFERING HIGHLIGHTS 1040 Golfair Blvd, Jacksonville, FL 32209 PRICE: $3,610,000 CAP RATE: 6.00% NET OPERATING INCOME: $216,612.50 LAND AREA: 0.8 ACRES (34,848 SF) BUILDING SIZE: 3,040 SF YEAR BUILT: 2000 LEASE TYPE: ABSOLUTE NNN *Tax Benefit Disclaimer: Franklin Street nor its licensed real estate agents are tax advisors and or qualified to give tax advice. The OWNERSHIP: FEE SIMPLE potential tax benefits are derived from sources deemed to be reliable through a cost segregation company and tax-equivalent yields based on a 35% tax bracket for 2019 but neither should be relied upon. This specific tax information is also subject to error and FOLIO NUMBER: 084817-0010 change. As such, we highly encourage investors to seek advice and verification of the potential tax benefits based on their own personal tax situation from their own trusted tax advisor. OCCUPANCY: 100.0% TENANCY: SINGLE RENT COMMENCEMENT DATE: 07/25/2013 RENT EXPIRATION DATE: 07/24/2028 128,000 VPD 84,318 RESIDENTS LEASE TERM REMAINING: 8.5 YEARS Travel daily along I-95 The area has 84,318 residents within 5 miles of TAX EQUIVALENT YIELD*: 9.23% the property RACEWAY | JACKSONVILLE, FL 32209 | OFFERING MEMORANDUM 5 LEASE ABSTRACT Tenant Overview RaceTrac is headquartered in Atlanta, Georgia since 1976 and was founded in 1934 in St. Louis over 85 years ago. They operates more than 670 company-owned and third-party contract operated stores under RaceTrac and RaceWay names in 12 southern states where the founder Mr. Carl Bolch pioneered the concept of self-service gasoline. RaceWay branded locations Concept can be found in Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, RaceWay Tennessee, Texas, and Virginia and RaceTrac can be found in Florida, Georgia, Louisiana, Texas, Mississippi. With over $9 Tenant Name (Lease) Billion in revenues and 7,450 employees, RaceTrac combined with RaceWay is one of the largest privately held convenience RaceTrac Petroleum, Inc., store operators, and 3rd largest private company in Georgia. (A Georgia Corporation) Company Website www.racetrac.com LEASE TERM LEASE YEARS LEASE DATES MONTHLY RENT ANNUAL RENT RENT INCREASE Lease Type Original Lease Term 1 07/25/2013 - 07/24/2014 $16,791.67 $201,500.00 NNN Fee Simple Original Lease Term 2 07/25/2014 - 07/24/2015 $16,791.67 $201,500.00 Guarantor Original Lease Term 3 07/25/2015 - 07/24/2016 $16,791.67 $201,500.00 Corporate Original Lease Term 4 07/25/2016 - 07/24/2017 $16,791.67 $201,500.00 Lease Space 3,040 SF Original Lease Term 5 07/25/2017 - 07/24/2018 $16,791.67 $201,500.00 Original Lease Term Original Lease Term 6 07/25/2018 - 07/24/2019 $18,051.04 $216,612.50 7.50% 15 years Original Lease Term 7 07/25/2019 - 07/24/2020 $18,051.04 $216,612.50 Lease Term Remaining Original Lease Term 8 07/25/2020 - 07/24/2021 $18,051.04 $216,612.50 8.5 years Original Lease Term 9 07/25/2021 - 07/24/2022 $18,051.04 $216,612.50 Rent Increases 7.5% every 5 years Original Lease Term 10 07/25/2022 - 07/24/2023 $18,051.04 $216,612.50 Renewal Options Original Lease Term 11 07/25/2023 - 07/24/2024 $19,404.87 $232,858.44 7.50% Seven (7) additional Five (5) Year Periods Original Lease Term 12 07/25/2024 - 07/24/2025 $19,404.87 $232,858.44 Rent Commencement Date Original Lease Term 13 07/25/2025 - 07/24/2026 $19,404.87 $232,858.44 07/25/2013 Original Lease Term 14 07/25/2026 - 07/24/2027 $19,404.87 $232,858.44 Rent Expiration Date 07/24/2028 Original Lease Term 15 07/25/2027 - 07/24/2028 $19,404.87 $232,858.44 Company Sales $9 Billion in Revenues DISCLAIMER The statements and figures herein are secured from sources we believe authoritative.