Class A Retail Property in Atlantic Beach, FL- $754,000

Class A retail Property Class A Retail Property in Atlantic Beach, FL- $754,000 Class A Building only a few blocks from the Ocean Quality Construction and finishes with elevator! Fully Leased Shadow anchored by a very active Publix Market Property zoned CCG-1, the best commercial zoning in the Jacksonville MSA. James Brady, Director Director jim.brady@kwcommercial.com 904-435-2790 BK3013798 KW Commercial Phone: 904-247-0059 Fax: 904-247-0089 4116 Third St S Jacksonville Beach, FL 32250 www.kwcommercial.com

TABLE OF CONTENTS Real Estate Investment Details... 3 Property Description... 4 Property Photos... 5 Maps and Aerials... 6 Lease Rent Roll... 8 Cash Flow Analysis... 9 Annual Property Operating Data... 10 Cumulative Analysis... 11 Operating Income Analysis... 12 Comparable Sales Report... Attachment Contact Jim Brady... Attachment All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made to the accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein.

REAL ESTATE INVESTMENT ANALYSIS Analysis Date February 2014 PROPERTY Property Property Address Year Built 2008 Class A retail Property PURCHASE INFORMATION Property Type Retail Purchase Price $754,000 Fair Market Value $800,000 Tenants 2 Total Rentable Sq. Ft. 3,200 Resale Valuation 2.0% (annual appreciation) Resale Expenses 5.0% FINANCIAL INFORMATION All Cash LT Capital Gain 20.00% Federal Tax Rate 35.0% LOANS All Cash Debt Term Amortization Rate Payment LO Costs INCOME & EXPENSES CONTACT INFORMATION Gross Operating Income $63,600 Monthly GOI $5,300 Total Annual Expenses ($13,984) Monthly Expenses ($1,165) James Brady, Director 904-435-2790 jim.brady@kwcommercial.com BK3013798 p. 3 All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made to the accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein.

PROPERTY DESCRIPTION Class A retail/commercial in Atlantic Beach, FL Shadow anchored by Publix This class A commercial property lies only a short walk from the beautiful Atlantic Ocean and beaches. The property was developed with great care and planning and the architectural and Engineering work is second to none. The property lies across Atlantic Blvd from a very busy Publix Market. The property directly across 51st street has been recently rezoned CCG-1 to match that of the subject and could be purchased for future development. The property if fully leased to a 2,000 sq.ft. Yoga Studio on the second floor and a Chiropractor/Personal trainer on the first floor. Both Tenants are doing very well and have just extended their leases. The Yoga Studio for five years and the Chiropractor for three years. Both leases have 2% per year rent bumps. The property can easily be adapted for other uses as the need arises. Each floor has its own HVAC and electric meter. They currenly have open floor plans but a restaurant could occupy the first floor or the entire building. There is an elevator which is unusual for a two story property. A bar/lounge on the first floor and and food service area on the second floor would work well, should that use be contemplated in the future. p. 4 All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made to the accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein.

PROPERTY PHOTOS Class A retail/commercial in Atlantic Beach, FL A short walk to the Beach. Front of building with Parking Yoga Studio Circular Window in Yoga Studio Building at night Front entry's and Lanai Interior finishes p. 5 All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made to the accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein.

MAPS AND AERIALS Aerial and Site map Walk to the Beach p. 6 All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made to the accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein.

MAPS AND AERIALS Floor plans Building layout p. 7 All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made to the accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein.

LEASE RENT ROLL Suite Tenant Start Date Expire Date RSF $/RSF Annualized Rent Tenant Improvements Commissions Renewal Term Renewal Increase Notes 100 Kai Fitness 08/01/2012 01/31/2017 1,200 $15.00 $18,000 $0.00 $0.00 1 year $0.00 200 Ocean Yoga 08/01/2008 03/31/2019 2,000 $22.80 $45,600 $0.00 $0.00 1 year $0.00 All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made to the accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein. p. 8

CASH FLOW ANALYSIS Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 GROSS SCHEDULED INCOME $63,600 $63,600 $63,600 $63,600 $63,600 $63,600 $63,600 $63,600 $63,600 $63,600 Total Operating Expenses ($13,984) ($13,984) ($13,984) ($13,984) ($13,984) ($13,984) ($13,984) ($13,984) ($13,984) ($13,984) NET OPERATING INCOME $49,616 $49,616 $49,616 $49,616 $49,616 $49,616 $49,616 $49,616 $49,616 $49,616 Loan Payment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 NET CASH FLOW (b/t) $49,616 $49,616 $49,616 $49,616 $49,616 $49,616 $49,616 $49,616 $49,616 $49,616 Cash On Cash Return b/t 6.58% 6.58% 6.58% 6.58% 6.58% 6.58% 6.58% 6.58% 6.58% 6.58% NET OPERATING INCOME $49,616 $49,616 $49,616 $49,616 $49,616 $49,616 $49,616 $49,616 $49,616 $49,616 Depreciation ($18,526) ($19,333) ($19,333) ($19,333) ($19,333) ($19,333) ($19,333) ($19,333) ($19,333) ($18,526) TAXABLE INCOME (LOSS) $31,090 $30,283 $30,283 $30,283 $30,283 $30,283 $30,283 $30,283 $30,283 $31,090 Income Taxes ($10,882) ($10,599) ($10,599) ($10,599) ($10,599) ($10,599) ($10,599) ($10,599) ($10,599) ($10,882) CASH FLOW (a/t) $38,734 $39,017 $39,017 $39,017 $39,017 $39,017 $39,017 $39,017 $39,017 $38,734 Cash On Cash Return a/t 5.14% 5.17% 5.17% 5.17% 5.17% 5.17% 5.17% 5.17% 5.17% 5.14% Footnotes: b/t = before taxes;a/t = after taxes p. 9 All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made to the accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein.

ANNUAL PROPERTY OPERATING DATA Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Rental Income $63,600 $63,600 $63,600 $63,600 $63,600 $63,600 $63,600 $63,600 $63,600 $63,600 GROSS SCHEDULED INCOME $63,600 $63,600 $63,600 $63,600 $63,600 $63,600 $63,600 $63,600 $63,600 $63,600 GROSS OPERATING INCOME $63,600 $63,600 $63,600 $63,600 $63,600 $63,600 $63,600 $63,600 $63,600 $63,600 Expenses Replacement Reserves ($3,200) ($3,200) ($3,200) ($3,200) ($3,200) ($3,200) ($3,200) ($3,200) ($3,200) ($3,200) Building Insurance ($3,338) ($3,338) ($3,338) ($3,338) ($3,338) ($3,338) ($3,338) ($3,338) ($3,338) ($3,338) Grounds Maintenance ($1,000) ($1,000) ($1,000) ($1,000) ($1,000) ($1,000) ($1,000) ($1,000) ($1,000) ($1,000) Taxes - Real Estate ($6,446) ($6,446) ($6,446) ($6,446) ($6,446) ($6,446) ($6,446) ($6,446) ($6,446) ($6,446) TOTAL OPERATING EXPENSES ($13,984) ($13,984) ($13,984) ($13,984) ($13,984) ($13,984) ($13,984) ($13,984) ($13,984) ($13,984) NET OPERATING INCOME $49,616 $49,616 $49,616 $49,616 $49,616 $49,616 $49,616 $49,616 $49,616 $49,616 p. 10 All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made to the accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein.

CUMULATIVE ANALYSIS Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Equity (appreciation) $62,000 $78,320 $94,966 $111,946 $129,265 $146,930 $164,949 $183,328 $202,074 $221,196 Equity (loan reduction) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 CASH FLOW (a/t) $38,734 $77,751 $116,768 $155,785 $194,802 $233,818 $272,835 $311,852 $350,869 $389,603 Totals - To Date $100,734 $156,071 $211,734 $267,731 $324,066 $380,748 $437,784 $495,179 $552,943 $610,799 Invested Capital ($754,000) ($754,000) ($754,000) ($754,000) ($754,000) ($754,000) ($754,000) ($754,000) ($754,000) ($754,000) ROIC - To Date 13.36% 20.70% 28.08% 35.51% 42.98% 50.50% 58.06% 65.67% 73.33% 81.01% Footnotes: a/t = after taxes; ROIC = Return On Invested Capital p. 11 All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made to the accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein.

OPERATING INCOME ANALYSIS $64,000 $57,600 $51,200 $44,800 $38,400 $32,000 $25,600 $19,200 $12,800 $6,400 Year 1 2 3 4 5 6 7 8 9 10 Legend GROSS OPERATING INCOME NET OPERATING INCOME NET CASH FLOW (b/t) All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made to the accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein. p. 12

Class A retail Property Comparable Sales Report

Prepared for Presented by James Brady KW Commercial Atlantic Partners 1/13/2014 (904) 435-2790 jim.brady@kwcommercial.com License: BK3013798 Properties for Sale Address Property Type 465 3rd st N Jacksonville Beach,FL32250 Retail 411 Pablo Avenue N Jacksonville Beach,FL32250 Retail 1124-1128 3rd St N Jacksonville Beach,FL32250-7241 Retail Property Subtype Free Standing Bldg Free Standing Bldg Free Standing Bldg Zoning CCG1- Community General Building Size 3,159 SF Bldg 3,490 SF Bldg 4,900 SF Bldg Year Built 1960 No. Stories 1 Lot Size 0.41 SF 0.29 AC APN / Parcel ID Asking Price $1,150,000 $655,000 $900,000 Price Per $364.04 /SF $187.68 /SF $183.67 /SF Cap Rate 6.32% Property Description Existing Salt Spa Building. Corner lot at a lighted intersection. Sale Price: $655,000+/-3,490 SF free-standing office/retail building.layout Includes:8 offices, conference room, reception area, kitchen,large... -+31,500- Cars per day on A1A (3rd St N)-+Located just North of Mellow MushroomGs highest grossing location-+great Jacksonville Beach opportunity j... Location Description Corner of 3rd St N. and 4th Ave N. in Jacksonville Beach, FL Conveniently located one block north of Beach Blvd just off of 3rd street in the heart of Jacksonville Beach.Close to restaurants and shops. Notes All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made to the accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein.

Class A retail Property Contact Jim Brady

For more information call: Jim Brady Director 904-435-2790 Jim.bradykwcommercial.com More than 35 years of Commercial Real estate Experience totaling over $1,500,000,000 in sales and Development!