EXCLUSIVE OFFERING $2,353,000 BURGER KING Absolute nnn

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1 Click Here for Property Video: SUBJECT PROPERTY EXCLUSIVE OFFERING $2,353,000 Absolute nnn RUSSELL SMITH BOB MOORHEAD ALEX TOWER Property. 2,980+ SF building on acres. Tenant / Guarantor. Southern King Holdings, LLC is an 22- unit Burger King Franchisee in the Jacksonville DMA. Lease structure. Brand new 15-year, absolute NNN lease, with 10% increases every 5-years in primary term & options. Location. Burger King is strategically located along S. Walnut St. HWY 301 (30,000 VPD), just south of HWY 100 (11,000 VPD) and HWY 230 (8,000 VPD), placing it in the heart of greater Starke s retail activity. With the close proximity of I-10, I-75 and I-95, the major highways 301 and 100, combined with the availability of rail and air services, Starke provides easy access to multiple businesses and trade areas. Notable nationally recognized credit tenants in the immediate trade include Winn Dixie, Walgreen s, CVS, O Reilly, ACE, Tractor Supply, O Reilly, AutoZone, CATO, Hibbett Sports, Anytime Fitness, Dollar General, IHOP, Hardee s, McDonalds, KFC, Taco Bell, Popeye's, Arby s, and many more. Starke is approximately 50 miles southwest of Jacksonville, FL.

2 Table of contents Disclaimer PAGE 1: PAGE 2: PAGE 3: PAGE 4-7: PAGE 8: PAGE 9: PAGE 10: PAGE 11-12: PAGE 13: COVER TABLE OF CONTENTS DISCLAIMER INVESTMENT TENANT LEASE OVERVIEW AERIAL PHOTOS SITE PLAN PROPERTY PHOTOS LOCATION OVERVIEW LOCATION MAPS DEMOGRAPHICS SUBJECT PROPERTY Disclaimer TRIVANTA, LLC ( Agent ) has been engaged as an agent for the sale of the property located at 801 South Walnut St., Starke, FL by the owner of the Property ( Seller ). The Property is being offered for sale in an as-is, where-is condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. The enclosed materials are being provided solely to facilitate the prospective investor s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Agent nor the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein. Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller. Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller s obligations hereunder have been satisfied or waived. By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller and Agent. FLORIDA BROKER OF RECORD: STEPHEN J. NOYOLA COMMERCIAL PROPERTY VENTURES, INC 2

3 Investment overview PRICE: $2,353,000 NET OPERATING INCOME: $132,926 BUILDING AREA: 2,980+ Square Feet LAND AREA: Acres Lease overview Initial Lease Term: 15-Yrs, Plus (5), 5-Year Option to Renew Rent Commencement: December 2016 Lease Expiration: December 2031 Lease Type: Absolute NNN YEAR BUILT: 2016 LANDLORD RESPONSIBILITY: None OWNERSHIP: Fee Simple Interest OCCUPANCY: 100% Rent Increases: Annual Rent Years 1-5: $132,926 Annual Rent Years 6-10: $146,218 Annual Rent Years 11-15: $160,840 Option 1 Years 16-20: $176,924 10% Every 5 Years In Primary Term & Options (Option 2 Years 21-25): $194,616 (Option 3 Years 26-30): $214,078 (Option 4 Years 31-35): $235,486 (Option 5 Years 36-40): $259,035 Tenant overview Lessee: Southern King Holdings II, LLC Guarantor: Southern King Holdings, LLC SOUTHERN KING HOLDINGS, LLC Southern King Holdings, LLC is an 22-unit Burger King Franchisee in the Jacksonville DMA. The SKH entities are currently operated and managed by equity partner, Bill Thompson. Bill is a 30+ year restaurant veteran who previously worked for Burger King Corporation before joining Southern King. Together, SKH and SKH II had revenues in excess of $27MM for 2015 and projects this to increase as they opened 3 new stores in 2016, and are opening additional stores in The ownership group of SKH has several other restaurant interests including Popeye's Louisiana Kitchen and Taco Bell and the collective store count is currently 170+ restaurants. Right Of First Refusal: Burger King Worldwide is a Delaware corporation that franchises and operates fast food hamburger restaurants, principally under the Burger King brand (also referred to as the Brand ).Since the company s founding as a single restaurant in Miami, Florida in 1954, they have grown to become the world s second largest fast food hamburger restaurant, or FFHR, chain as measured by the total number of restaurants. As of September 30, 2016, the Burger King system consisted of SUBJECT PROPERTY 15,243 restaurants in over 100 countries and U.S. territories worldwide. PRIOR TO PANDA EXPRESS EXPANSION Burger King generates revenues from three sources: (1) retail sales at Company restaurants; and (2) franchise revenues, consisting primarily of royalties based on a percentage of sales reported by franchise restaurants and franchise fees paid by franchisees and (3) as property income derived from properties they lease or sublease to their franchisees. Approximately 99% of current restaurants are franchised and they have a higher percentage of franchise restaurants to Company restaurants than their major competitors in the FFHR category. They believe that their high percentage of franchise restaurants provides them with a strategic advantage because the capital required to grow and maintain the Burger King system is funded primarily by franchisees. Total company revenues for the 2013 fiscal year were $1.146 billion. In 2010, 3G Capital, a global multi-million dollar investment firm focused on long term value creation, purchased Burger King Corporation, making it a privately-held company. 3G Capital was founded in late 2004, building on the original New York investment office of the firm's principals: Jorge Paulo Lemann, Marcel Telles, and Carlos Alberto Sicupira. The firm has offices in New York City and Rio de Janeiro. Yes 3

4 Aerial photo Florida Works Farmer s Home Furniture Community State Bank Cedar River Seafood 4

5 Aerial photo Community State Bank 5

6 Aerial photo Starke Elementary Bradford High School Shands at Starke (Medical) 6

7 Aerial photo Edwards Rd Lending Bear Florida Works Community State Bank Farmer s Home Furniture 7

8 SITE PLAN 8

9 PROPERTY PHOTOS 9

10 Location overview IMMEDIATE TRADE AREA Burger King is strategically located along S. Walnut St. HWY 301 (30,000 VPD), just south of HWY 100 (11,000 VPD) and HWY 230 (8,000 VPD), placing it in the heart of greater Starke s retail activity. With the close proximity of I-10, I-75 and I-95, the major highways 301 and 100 combined with the availability of rail and air services, Starke provides easy access to multiple businesses and trade areas. Notable nationally recognized credit tenants in the immediate trade include Winn Dixie, Walgreen s, CVS, O Reilly, ACE, Tractor Supply, O Reilly, AutoZone, CATO, Hibbett Sports, Anytime Fitness, Dollar General, IHOP, Hardee s, McDonalds, KFC, Taco Bell, Popeye's, Arby s, and many more. STARKE, FL / NORTH CENTRAL FL The City of Starke, Florida is located in North Central Florida and has an estimated population of 5,449. Starke is approximately 50-miles southwest of Jacksonville, FL, approximately 30-miles northeast of Gainesville, FL, and about 40- miles southeast of Lake City, FL. North Central Florida is known for its abundance of natural resources, as well as affordable cost of living. Its modern modal transportation infrastructure makes it a natural hub for logistics and distribution. With two of Florida s top research universities in the region, North Central Florida is humming with innovative ideas and technology. North Central Florida has a well-developed intermodal transportation network, creating easy customer access. There is an abundance of rail, seaport and inland ports, and Jacksonville provides international air access, as well as a large seaport. The region boasts a robust energy and utilities infrastructure, including an expansive and modern broadband network. With over 90 million visitors a year, Florida is the top travel destination in the world. The tourism industry has an estimated economic impact of over $70 billion on Florida s economy. While theme parks, beaches, and large-scale conferences and other events are major contributors to Florida s tourism market, North Central Florida provides the best of both worlds by providing close access to these amenities and at the same time access to unmatched passive and active recreation/leisure activities, Florida s most pristine natural resources including the highest concentration of First Magnitude Springs in the nation, some of Florida s most historic and beautiful river systems, and quaint and historic communities representing the real Florida. North Central Florida is simply the mecca for outdoor enthusiasts including access to the best fishing, hunting, golf, spring and cave diving, observation and swimming with Manatees, camping and trail hiking, kayaking and canoeing, tubing, and other recreational options in the state. JACKSONVILLE, FL MSA The Jacksonville Metropolitan Statistical Area (MSA) consists of 5 counties: Duval County, Clay County, St. Johns County, Nassau County, and Baker County in northeast Florida and has a population of 1,345,596. Jacksonville is the principal city in the MSA and the largest in the state of Florida by population. A cluster of beach communities that includes Jacksonville Beach (Population: 21,362), Atlantic Beach (Population: 13,368), and Ponte Vedra Beach (Population 37,924) play a prominent role in the local tourism industry. Approximately 2.8 million people visit the Jacksonville area annually creating a $1.5 billion annual economic impact. Weekends and holidays see each city's beaches and roadways fill with the outflow from Jacksonville's revelers. The mix of small shops and restaurants so near the beach provide visitors and residents the opportunity to shop and dine during their beach days and evenings. Ponte Vedra Beach is an upmarket tourist resort area best known for its association with golf, particularly the Sawgrass development. The crown jewel of the Sawgrass development is the TPC at Sawgrass golf course which hosts The Players Championship annually. The course is known for its signature hole, the par-3, 132-yard 17th, known simply as the "Island Green", one of golf's most recognizable and difficult holes. Median family income in Ponte Vedra Beach is $109,181. The Ponte Vedra Beach area is known for being a very influential area of North Florida, and boasts one of the best school districts in the state. Click Here for Property Video: 10

11 Location map 11

12 Location map 12

13 Demographics 801 S Walnut St Starke, FL mi radius 3 mi radius 5 mi radius 801 S Walnut St Starke, FL mi radius 3 mi radius 5 mi radius POPULATION HOUSEHOLDS AGE MARITAL STATUS & GENDER INCOME 2016 Estimated Population 3,140 8,705 12, Projected Population 3,359 9,260 12, Census Population 3,234 8,971 12, Census Population 2,942 8,469 11,824 Projected Annual Growth 2016 to % 1.3% 1.2% Historical Annual Growth 2000 to % 0.2% 0.1% 2016 Estimated Households 1,266 3,414 4, Projected Households 1,313 3,528 4, Census Households 1,259 3,383 4, Census Households 1,116 3,106 4,317 Projected Annual Growth 2016 to % 0.7% 0.6% Historical Annual Growth 2000 to % 0.6% 0.6% 2016 Est. Population Under 10 Years 13.9% 14.0% 13.6% 2016 Est. Population 10 to 19 Years 11.4% 12.0% 12.0% 2016 Est. Population 20 to 29 Years 12.9% 12.8% 12.7% 2016 Est. Population 30 to 44 Years 15.6% 16.5% 16.9% 2016 Est. Population 45 to 59 Years 17.4% 18.1% 18.7% 2016 Est. Population 60 to 74 Years 17.3% 16.7% 16.8% 2016 Est. Population 75 Years or Over 11.5% 9.9% 9.3% 2016 Est. Median Age Est. Male Population 46.5% 47.7% 48.4% 2016 Est. Female Population 53.5% 52.3% 51.6% 2016 Est. Never Married 35.3% 31.4% 30.3% 2016 Est. Now Married 35.0% 38.1% 39.9% 2016 Est. Separated or Divorced 15.9% 17.7% 18.6% 2016 Est. Widowed 13.8% 12.8% 11.2% 2016 Est. HH Income $200,000 or More 0.1% 0.5% 1.1% 2016 Est. HH Income $150,000 to $199, % 1.3% 1.3% 2016 Est. HH Income $100,000 to $149, % 9.2% 8.9% 2016 Est. HH Income $75,000 to $99, % 13.0% 12.3% 2016 Est. HH Income $50,000 to $74, % 17.1% 17.3% 2016 Est. HH Income $35,000 to $49, % 10.8% 11.0% 2016 Est. HH Income $25,000 to $34, % 10.4% 11.2% 2016 Est. HH Income $15,000 to $24, % 11.1% 11.8% 2016 Est. HH Income Under $15, % 26.7% 25.0% 2016 Est. Average Household Income $43,094 $47,827 $49, Est. Median Household Income $34,215 $39,926 $39, Est. Per Capita Income $17,600 $18,977 $19, Est. Total Businesses Est. Total Employees 2,103 4,279 5,304 LABOR FORCE OCCUPATION TRANSPORTATION TO WORK TRAVEL TIME CONSUMER EXPENDITURE 2016 Est. Labor Population Age 16 Years or Over 2,489 6,856 9, Est. Civilian Employed 51.4% 52.0% 50.7% 2016 Est. Civilian Unemployed 1.9% 1.9% 1.9% 2016 Est. in Armed Forces Est. not in Labor Force 46.7% 46.1% 47.4% 2016 Labor Force Males 44.8% 46.5% 47.5% 2016 Labor Force Females 55.2% 53.5% 52.5% 2010 Occupation: Population Age 16 Years or Over 1,088 3,357 4, Mgmt, Business, & Financial Operations 10.3% 11.0% 10.9% 2010 Professional, Related 15.6% 14.8% 15.1% 2010 Service 32.4% 29.9% 29.6% 2010 Sales, Office 24.6% 21.7% 21.7% 2010 Farming, Fishing, Forestry 0.1% 0.2% 0.4% 2010 Construction, Extraction, Maintenance 6.7% 10.3% 10.4% 2010 Production, Transport, Material Moving 10.2% 12.0% 12.0% 2010 White Collar Workers 50.6% 47.6% 47.6% 2010 Blue Collar Workers 49.4% 52.4% 52.4% 2010 Drive to Work Alone 79.9% 81.8% 82.7% 2010 Drive to Work in Carpool 15.4% 12.4% 11.3% 2010 Travel to Work by Public Transportation 0.1% 0.2% 0.2% 2010 Drive to Work on Motorcycle 0.1% 0.2% 0.3% 2010 Walk or Bicycle to Work 4.1% 3.7% 3.5% 2010 Other Means % 2010 Work at Home 0.3% 1.8% 1.9% 2010 Travel to Work in 14 Minutes or Less 50.1% 51.0% 48.8% 2010 Travel to Work in 15 to 29 Minutes 20.3% 22.3% 24.5% 2010 Travel to Work in 30 to 59 Minutes 16.7% 17.2% 17.7% 2010 Travel to Work in 60 Minutes or More 12.9% 9.5% 9.0% 2010 Average Travel Time to Work Est. Total Household Expenditure $50.3 M $145 M $205 M 2016 Est. Apparel $1.75 M $5.02 M $7.08 M 2016 Est. Contributions, Gifts $2.98 M $8.69 M $12.4 M 2016 Est. Education, Reading $1.80 M $5.17 M $7.28 M 2016 Est. Entertainment $2.75 M $7.97 M $11.3 M 2016 Est. Food, Beverages, Tobacco $8.04 M $23.0 M $32.4 M 2016 Est. Furnishings, Equipment $1.62 M $4.76 M $6.72 M 2016 Est. Health Care, Insurance $4.59 M $13.2 M $18.7 M 2016 Est. Household Operations, Shelter, Utilities $15.7 M $45.2 M $63.8 M 2016 Est. Miscellaneous Expenses $760 K $2.19 M $3.09 M 2016 Est. Personal Care $658 K $1.89 M $2.67 M 2016 Est. Transportation $9.60 M $27.8 M $39.2 M 13