EXCLUSIVE INVESTMENT SUMMARY 328 ELIZABETH AVENUE ELIZABETH, NEW JERSEY

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1 EXCLUSIVE INVESTMENT SUMMARY 328 ELIZABETH AVENUE ELIZABETH, NEW JERSEY

2 EXCLUSIVE MARKETING ADVISORS MARC MANDEL STEVE SCHRENK MATT PIZZOLATO Managing Director Director Director Investment Advisory Investment Advisory Financing Holliday GP Corp. ( HFF ), a New Jersey 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 26 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 advisory, 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

3 Investment Summary 7-ELEVEN ELIZABETH, NEW JERSEY

4 INVESTMENT SUMMARY Holliday Fenoglio Fowler, L.P. ( HFF ) Net Lease Advisory is pleased to exclusively offer a net lease opportunity to acquire a single tenant Corporate 7-Eleven located in Elizabeth, NJ. 7-Eleven is an investment grade tenant and has an excellent AA- credit rating from S&P. The offering presents an opportunity to acquire a 15-year single tenant asset located 10 miles from NYC with 10% increases throughout the term inclusive of option periods. The location benefits from superior access directly off the New Jersey Turnpike and benefits from exceptional visibility and convenient access. The property boasts tremendous demographics with over 540,000 people within a 5-mile radius and 2% expected growth over the next 5 years. 7-Eleven is the world s largest convenience stores chain and is a Japanese-owned American international chain of convenience stores, headquartered in Irving, Texas. The subsidiary was founded in 1927, originally named Tote m Stores. Its current name reflects the company s extended hours, 7:00 am to 11:00 pm, seven days per week. Known for their beverages Slurpee and Big Gulp, 7-Eleven operates more than 11,500 company-owned or franchised convenience stores in the US, Canada, and Mexico under the 7-Eleven name. $3,146,000 ASKING PRICE 5.00% CAP RATE $157,300 TOTAL NOI 15 Years REMAINING LEASE TERM +/ Acres TOTAL LAND AREA 4 7-ELEVEN ELIZABETH, NEW JERSEY

5 CORPORATE TENANT + LONG TERM LEASE Corporate 7-Eleven on a long-term lease with 10% rental increases every 5 years throughout the term of the lease inclusive of the option periods INVESTMENT HIGHLIGHTS Passive Investment opportunity with Minimal Landlord responsibility HIGH VISIBILITY & GREAT ACCESSIBILITY Extremely dense Northern New Jersey location, directly off the NJ Turnpike and approximately 10 miles from NYC; over 540,000 people within a 5-mile radius #1 MARKET SHARE 7-Eleven is the dominant convenience store in North Jersey with #1 Market share in the surrounding area INVESTMENT GRADE CREDIT 7-Eleven is the largest convenience store chain in the world and boasts an excellent AA- Investment Grade Credit Rating 7-ELEVEN ELIZABETH, NEW JERSEY 5

6 TENANT OVERVIEW N) INVESTMENT SUMMARY FINANCIAL ANALYSIS MARKET OVERVIEW PORT OF NEWARK NEWARK LIBERTY INTERNATIONAL AIRPORT (TO N YC /T RE NT O KEAN UNIVERSITY 95 NJ TR AN SI T 81 EXIT HUDSON ELEMENTARY TERENCE REILLY CHARTER PD 6V THE MILLS AT JERSEY GARDEN 26 ELIZABETH LARGE CONCENTRATION OF DISTRIBUTION CENTERS 9,3 2 UNION COUNTY COLLEGE TRINITAS MEDICAL CENTER PORT OF ELIZABETH 13A 9 INTERMODAL TERMINAL SUBJECT PROPERTY WASHINGTON ELEMENTARY COLUMBUS HIGH SCHOOL BAYONNE 95 EXIT 13 LARGE INDUSTRIAL & MANUFACTURING PRESENCES 6 7- E L E V E N LINDEN ELIZABETH, NEW JERSEY 278 NEW YORK CONTAINER TERMINAL STATEN ISLAND

7 TENANT OVERVIEW 7- E L E V E N ELIZABETH, NEW JERSEY

8 TENANT PROFILE S&P Credit Rating 7-ELEVEN, INC. 7-Eleven is the world s largest convenience stores chain and is a Japanese-owned American international chain of convenience stores, headquartered in Irving, Texas. The subsidiary was founded in 1927, originally named Tote m Stores. Its current name reflects the company s extended hours, 7:00 am to 11:00 pm, seven days per week. Known for their beverages Slurpee and Big Gulp, 7-Eleven operates more than 11,500 company-owned or franchised convenience stores in the US, Canada, and Mexico under the 7-Eleven name. Globally, 7-Eleven licenses more than 65,000 stores in nearly 20 countries and employing more than 47,000 employees. In addition to its iconic beverages, the chain sells thousands of other traditional convenience items, as well as sandwiches, salads, pizza, cut fruit and other ready-to-eat foods. Some locations sell gasoline and offer services such as bill payment and self-service lockers. 7-Eleven is the North America subsidiary of Seven-Eleven Japan. 7-Eleven units typically sit on sites witnessing more than 25,000 vehicles daily. 7-Eleven s annual operation profit is more than $700 million, using a strategy that revolves around three principle areas: product development and innovation, new store openings, and global expansion. 7-eleven.com CORPORATE OVERVIEW Tenant Trade Name 7-Eleven U.S. Headquarters Irving, TX Stock Ticker Number of Employees 47,000+ Number of Locations 11,500+ SVNDF (Japanese Market) REPRESENTATIVE PHOTO 8 7-ELEVEN ELIZABETH, NEW JERSEY

9 SITE PLAN Pylon Sign ELIZABETH AVENUE 95 Pylon Sign FIRST AVENUE 7-ELEVEN ELIZABETH, NEW JERSEY 9

10 Financial Analysis 7-ELEVEN ELIZABETH, NEW JERSEY

11 LEASE ABSTRACT LEASE DETAIL Address Tenant Branded as Lot Area 328 Elizabeth Avenue Elizabeth, NJ Eleven, Inc 7-Eleven 0.70 Acres Building Size 3,076 Year Built 2012 Annual Rent $157,300 Lease Type NN+ Rent Commencement 5/8/2018 Lease Expiration 5/7/2033 Remaining Lease Term Remaining Options Years Three (3) Five (5) Year Options RENT SCHEDULE Description Dates Annual Rent Rent Increase % Base Term Years 1-5 5/8/2018-5/7/2023 $157,300 Base Term Years /8/2023-5/7/2028 $173,030 10% Base Term Years /8/2028-5/7/2033 $190,333 10% First Option Years /8/2033-5/7/2038 $209,366 10% Second Option Years /8/2038-5/7/2043 $230,303 10% Third Option Years /8/2043-5/7/2048 $253,333 10% TENANT RESPONSIBILITY DETAIL Maintenance and Repairs Insurance Taxes Tenant agrees to keep the interior and exterior of the building in good repair including electrical, plumbing, heating and air conditioning equipment, and to maintain the landscaped areas, and surface of the parking lot and driveway areas Tenant agrees, at Tenant's expense, to maintain in force continuously throughout the Tenn, and any Extended Tenn, worker's compensation insurance in accordance with applicable law, employer's liability insurance, commercial general public liability insurance covering the Premises with combined single limit coverage of $2,000,000 and shall, upon Landlord's written request, furnish Landlord a certificate from the insurer evidencing such coverage. Tenant shall have the right to selfinsure as to some or all of the risks covered by this Article, provided that Tenant maintains a net worth not less than $50,000,000 Tenant shall pay real estate taxes directly to the taxing authority for the demised premises Utilities Tenant shall pay for all utilities directly to the service providers LANDLORD RESPONSIBILITY DETAIL Maintenance and Repairs Landlord shall keep and maintain the foundation, roof, and structural members of the premises in good condition and repair 7-ELEVEN ELIZABETH, NEW JERSEY 11

12 Market Overview 7-ELEVEN ELIZABETH, NEW JERSEY LINCOLN TUNNEL HOLLAND TUNNEL NEWARK LIBERTY INT L AIRPORT PORT OF ELIZABETH/NEWARK BAYONNE BRIDGE VERRAZONO BRIDGE

13 LOCATION OVERVIEW Elizabeth, NJ Founded in 1664, Elizabeth was the first capital of New Jersey and lies on Newark Bay and is connected to Staten Island by the Goethals Bridge. Less than 15 miles from Manhattan, just off the Jersey Turnpike with the Newark Liberty International Airport in the cities backyard, Elizabeth offers the perfect location. Today, Elizabeth is home to over 130,000 residents, making it the fourth largest city in New Jersey and 212th largest in the nation. The city ranks in the upper quartile for population density and diversity index when compared to the other cities, towns and Census Designated Places in New Jersey. Elizabeth has something for everyone. From cultural festivals, the arts, plenty of green space options, ultimate shopping experiences, gourmet cultural cuisine, lavish and trending nightlife and historic sites with historical roots that span 350 years, Elizabeth has something for everyone. The New Jersey s largest premium outlet mall, The Mills at Jersey Gardens is located in the city, combined with many other massive shopping and retail centers. As a true melting pot community, the city hosts various cultural parades embracing diverse ethnic heritages. As for tourists and history, there is an audio walking tour of Midtown, as well as various historical tours that will take you back in time to the Revolutionary War. In close proximity to NYC and being part of the New York metropolitan area, there is easy access to world-class attractions of all types in NYC, being all less than 20 miles away from Elizabeth. Elizabeth is one of the New York metropolitan area s prime residential and industrial centers, and is a highly industrialized city with major shipping operations. Midtown also occasionally known as Uptown, is the main commercial district and a historic section as well. The Port Newark-Elizabeth Marine Terminal has become the principle container ship facility serving the northeastern quadrant of North America and one of the busiest ports in the world. Elizabeth is a focal point of several major thoroughfares, including interstates I-78, I-95 and I-278; U.S. Routes 1,9, and 22 and New Jersey State Highways 27,28 and 81. Elizabeth is among the U.S. cities with the highest train ridership. It is served by NJ Transit on Amtrak s Northeast Corridor Line and NJ Transit also provides bus service all throughout Elizabeth. 7-ELEVEN ELIZABETH, NEW JERSEY 13

14 POPULATION 1 MILE 3 MILES 5 MILES 2010 Census 40, , , Estimate 44, , , Projection 46, , ,841 DEMOGRAPHICS POPULATION GROWTH 1 MILE 3 MILES 5 MILES Historical Growth: 2010 to % 5.40% 3.81% Projected Growth: 2018 to % 2.98% 2.24% HOUSEHOLDS 1 MILE 3 MILES 5 MILES 2018 Average Household Income $57,322 $64,484 $77, Median Household Income $45,889 $47,680 $57, Census 12,452 60, , Estimate 13,463 62, , Projection 14,043 64, ,884 Historical Growth: 2010 to % 4.37% 3.48% Projected Growth: 2018 to % 2.61% 2.13% 5 MILES 3 MILES 1 MILE NEW YORK CITY 18 MILES PHILADELPHIA, PA 80 MILES 14 7-ELEVEN ELIZABETH, NEW JERSEY

15 SURROUNDING RETAIL & AMENITIES The Mills at Jersey Green 02 Newark Liberty Int l Airport 03 Ikea - Elizabeth 04 Kean University 05 Red Bull Stadium 06 Elizabeth Station - NJ Transit Port Elizabeth/Newark 08 New York City 7-ELEVEN ELIZABETH, NEW JERSEY 15

16 EXCLUSIVE MARKETING ADVISORS MARC MANDEL STEVE SCHRENK MATT PIZZOLATO Managing Director Director Director Investment Advisory Investment Advisory Financing