Offering Memorandum. 929 SW 8th Street Pompano Beach, FL BOCA RATON MIAMI & FORT LAUDERDALE I-95 (168,146 VPD) W ATLANTIC BLVD (54,425 VPD)

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1 D) (23,3 52 VP HWY DIXIE I-95 (168,146 VPD) BOCA RATON POMPANO BEACH AIRPARK ) POWERLINE RD (46,714 VPD W ATLANTIC BLVD (54,425 VPD) PALM-AIRE COUNTRY CLUB MIAMI & FORT LAUDERDALE N South Florida Billboard Subject Property Offering Memorandum South Florida Billboard 929 SW 8th Street Pompano Beach, FL N

2 Confidentiality and Restricted Use Agreement Offered Exclusively by This Confidential Offering Memorandum ( COM ) is provided by Stan Johnson Company ( SJC ), solely for your consideration of the opportunity to acquire the commercial property described herein (the Property ). This COM may be used only as stated herein and shall not be used for any other purpose, or in any other manner, without prior written authorization and consent of SJC. This COM does not constitute or pertain to an offer of a security or an offer of any investment contract. This COM contains descriptive materials, financial information and other data compiled by SJC for the convenience of parties who may be interested in the Property. Such information is not all inclusive and is not represented to include all information that may be material to an evaluation of the acquisition opportunity presented. SJC has not independently verified any of the information contained herein and makes no representations or warranties of any kind concerning the accuracy or completeness thereof. All summaries and discussions of documentation and/or financial information contained herein are qualified in their entirety by reference to the actual documents and/or financial statements, which upon request may be made available. An interested party must conduct its own independent investigation and verification of any information the party deems material to consideration of the opportunity, or otherwise appropriate, without reliance upon SJC. Jason Long Associate Director jlong@stanjohnsonco.com FL Lic # BK Adam Jennings Associate ajennings@stanjohnsonco.com The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the right to negotiate with any number of interested parties at any time. The Property is offered and sold by its owner(s) as is, where is, and with all faults, without representation or warranty of any kind except for any customary warranties of title. BY ACCEPTING THIS COM, YOU AGREE THAT: (1) all information contained herein, and all other information you have received or may hereafter receive from SJC relating to the Property, whether oral, written or in any other form (collectively, the Information ), is strictly confidential; (2) you will not copy or reproduce, and claim as your own without attribution to SJC, all or any part of this COM or the Information; (3) upon request by SJC at any time, you will return and/or certify your complete destruction of all copies of this COM and the Information; (4) for yourself and all your affiliates, officers, employees, representatives, agents and principals, you hereby release and agree to indemnify and hold harmless SJC all of its affiliates, officers, employees, representatives, agents and principals, from and with respect to any and all claims and liabilities arising from or related to the receipt or use of this COM and/or any other Information concerning the Property; (5) you will not provide this COM or any of the Information to any other party unless you first obtain such party s acceptance and approval of all terms, conditions, limitations and agreements set forth herein, as being applicable to such party as well as to you; and (6) monetary damages alone will not be an adequate remedy for a violation of these terms and that SJC shall be entitled to equitable relief, including, but not limited to, injunctive relief and specific performance, in connection with such a violation and shall not be required to post a bond when obtaining such relief. Stan Johnson Company 3340 Peachtree Road NE Suite 650 Atlanta, Georgia stanjohnsonco.com South Florida Billboard Pompano Beach, FL 2

3 The Offering Stan Johnson Company is pleased to offer for sale to qualified investors, the opportunity to purchase a South Florida billboard ground lease located at 929 SW 8th Street in Pompano Beach, Florida (the Property ). The Property is strategically located along Interstate 95 with excellent visibility going north and south for travelers going to and from Miami. This two-sided billboard is leased to advertising giant Clear Channel Outdoor. The corporate guaranteed lease has more than 7.5 years remaining with zero landlord responsibilities. Broward County is a very high barrier to entry market with no plans to permit new billboards in the area. The billboard location benefits from the high traffic counts of nearly 170,000 cars per day at this I-95 intersection. Price: $1,056,000 Cap Rate: 5.0% Pricing Overview Base Rent: $42,000 Revenue Rent: + $10,800 Total Rent: $52,800 Subject Property Investment Highlights Strong Corporate Lease with Credit Tenant Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) is an outdoor advertising company that owns and operates advertising display faces worldwide. As of December 2015, Clear Channel had reported revenue of $2.77 billion and total assets of $6.36 billion with an S&P Rating of B-. Extremely High Traffic Counts - The average vehicles per day passing the billboard is nearly 170,000 cars. High Barrier to Entry Market Broward County has no plans to permit new billboards along I-95. Excellent Interstate Visibility The billboard provides excellent visibility going both north and south on I-95. Revenue Rent The landlord receives 20% of the gross revenue paid monthly as additional rent. Estimated to be $10,800 annually based on past operating history. Tax Free State Florida has no state income tax. Potential to Increase Rent The lease has no options. This creates an opportunity for an investor to increase the rent at the end of the term. South Florida Billboard Pompano Beach, FL 3

4 Lease Abstract Tenant: Address: Clear Channel Outdoor 929 SW 8th Street Pompano Beach, FL Year Built: 2004 Lease/Rent Commencement: 4/24/04 South Florida Billboard Lease/Rent Expiration: 4/23/24 Remaining Lease Term: 7.5 years Annual Rent: $52,800* Renewal Options: None Lease Type: Ownership Interest: Absolute NNN Ground Lease South Florida Billboard *The annual base rent is $42,000. The owner receives 20% of the gross revenue paid monthly as additional rent. Based on past operating history, the additional rent is estimated to be $10,800 annually. South Florida Billboard Pompano Beach, FL 4

5 Subject Property I-95 (168,146 VPD) South Florida Billboard Pompano Beach, FL 5

6 I-95 (168,146 VPD) POMPANO BEACH AIRPARK BOCA RATON (23,3 52 VP D) South Florida Billboard HWY PALM-AIRE COUNTRY CLUB ISLE CASINO RACING POMPANO PARK DIXIE ) POWERLINE RD (46,714 VPD W ATLANTIC BLVD (54,425 VPD) MIAMI & FORT LAUDERDALE N

7 Tenant Overview Clear Channel Outdoor Holdings, Inc. (NYSE: CCO) is an outdoor advertising company that owns and operates advertising display faces worldwide. Founded in 1901 and headquartered in San Antonio, Clear Channel offers advertising on traditional and non traditional advertising media platforms such as: billboard advertising, posters, street furniture, mall/ retail advertising, airport advertising, mobile/transit advertising and spectacular advertising locations such as Times Square. As of December 31, 2015, it owned and operated approximately 650,000 advertising displays worldwide. Formerly known as Eller Media Company, the company changed its name to Clear Channel Outdoor Holdings Inc. in August iheartcommunications, Inc., a subsidiary of Clear Channel Outdoor Holdings, Inc., specializes in radio broadcasting through division iheartmedia. With more than 850 full-power AM and FM stations in the U.S., the company is the largest owner of radio stations. The company operates the country s largest syndication service, Premier Networks. Tenant Financials & Overview Company: Clear Channel Outdoor Holdings, Inc. Stock Symbol: CCO; S&P: B- Marketing Cap: Revenue (2015): Total Assets: EBITDA: Net Worth: # of Full Time Employees: Industry: $2.54 billion $2.77 billion $6.36 billion $6.65 million $ billion 6,000 Marketing Services South Florida Billboard Pompano Beach, FL 7

8 Location Overview Pompano Beach is a city in Broward County, Florida, along the coast of the Atlantic Ocean just to the north of Fort Lauderdale. The nearby Hillsboro Inlet forms part of the Atlantic Intracoastal Waterway. As of the 2010 census the city s population was 99,845, with an estimated population of 102,984 as of It is part of the Miami Metropolitan Area, which was home to 5,564,635 people in Pompano Beach is currently in the middle of a redevelopment process to revitalize its beachfront and historic downtown. The city has also been listed as one of the top real estate markets, being featured in CNN, Money and the Wall Street Journal as one of the country s top vacation home markets. Pompano Beach Airpark, located within the city, is the home of the Goodyear Blimp Spirit of Innovation. In recent years, an effort to rejuvenate rundown areas near the city s beach has gained momentum and has stimulated a multibillion dollar building boom. Community redevelopment agencies were established for the East Atlantic/Beach corridor, as well as for the old downtown and Hammondville/Martin Luther King corridor. Companies based in Pompano Beach include Associated Grocers of Florida and PetMeds. Nonprofits include Cross International. Pompano Beach, FL South Florida Billboard Pompano Beach, FL 8

9 Demographics 929 SW 8th Street Pompano Beach, FL mi. 0-3 mi. 0-5 mi. Population 2016 Population 15, , , Population 16, , , Annual Rate 1.59% 0.87% 0.95% South Florida Billboard Annual Rate 1.78% 1.30% 1.36% Households 2016 Total Households 6,246 50, , Total Households 6,812 53, , Annual Rate 1.51% 0.76% 0.76% Annual Rate 1.75% 1.22% 1.24% 2016 Average Household Income $50,241 $66,726 $66, Median Household Income $35,948 $43,713 $45,259 N

10 Offered Exclusively by Jason Long Associate Director FL Lic # BK going beyond Adam Jennings Associate ajennings@stanjohnsonco.com Stan Johnson Company 3340 Peachtree Road NE Suite 650 Atlanta, Georgia stanjohnsonco.com The information contained herein was obtained from sources believed reliable, however, Stan Johnson Company makes no guaranties, warranties or representations as to the completeness thereof. The presentation of this property for sale, rent or exchange is submitted subject to errors, omissions, change of price or conditions, or withdrawal without notices.