Atlantic Ocean EXCLUSIVE OFFERING $1,992,000 / 6.00% CAP EXP DALLAS 214.522.7200 JOE CAPUTO joe@exp1031.com BOB MOORHEAD bob@exp1031.com property. Convenient and accessible 2-tenant building. Significant renovations in 2012 to 3,675+ SF building. tenant mix / lease structure. 7-Eleven, Inc. brand new, 10-year corporate net lease beginning in 2012. Complimentary tenant mix with 7-Eleven and Yobe Frozen Yogurt 5-year corporate net lease; commenced December 2012. location. The subject property is located along Atlantic Boulevard (35,000 Cars / Day) at Florida Highway A1A (28,097 Cars / Day) in the Neptune Beach retail corridor. The subject property is 2 blocks from public beach access and next to CVS, Walgreens, and Starbucks. The site is also near anchor tenants that include Publix, Kmart, JoAnn Fabrics, and Winn Dixie. Ace Hardware, Pier One Imports, UPS Store, Wells Fargo, McDonald s, KFC, Smashburger, Radio Shack, and Jimmy Johns. Projected 5-year population growth rate within 1-mile radius: 6.4%.
Table of contents Disclaimer PAGE 1: PAGE 2: PAGE 3: PAGE 4: PAGE 5: PAGE 6: PAGE 7-8: PAGE 9: PAGE 10-11: PAGE 12: COVER TABLE OF CONTENTS DISCLAIMER INVESTMENT TENANT OVERVIEWS RENT ROLL PROPERTY PHOTOS SURVEY AERIAL PHOTOGRAPH LOCATION OVERVIEW LOCATION MAPS DEMOGRAPHICS Disclaimer EXP Realty Advisors, Inc. ( Agent ) has been engaged as an agent for the sale of the property located at 301 Atlantic Boulevard, Neptune Beach, 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: Turner Net Properties, Inc. License # 565084
Investment overview TENANT OVERVIEW PRICE: $1,992,000 CAP RATE: 6.00% NET OPERATING INCOME: $119,504 BUILDING AREA: LAND AREA: 3,675+ Square Feet 0.29+ Acres YEAR BUILT / RENOVATED: 1980 / 2012 LANDLORD RESPONSIBILITY: OWNERSHIP: Includes Roof and Structure Fee Simple Interest OCCUPANCY: 100% SUBJECT PROPERTY Tenant overview 7-ELEVEN http://www.7-eleven.com The brand name 7-Eleven is now part of an international chain of convenience stores, operating under Seven-Eleven Japan Co., Ltd., primarily operating as a franchise. It is the largest chain store operator with more than 45,900 locations operating around the world, surpassing the previous record-holder McDonald s Corporation in 2007. Its stores are located in eighteen countries, with its largest markets being Japan, the United States, Canada, the Philippines, Hong Kong, Taiwan, Malaysia and Thailand. 7-Eleven, Inc. as a former U.S.-originating company, is a subsidiary of Seven-Eleven Japan Co., Ltd, which in turn is owned by Seven & I Holdings Co. of Japan. The US chain has its headquarters in downtown Dallas, Texas. 7-Eleven operates, franchises and licenses more than 7,000 stores in North America. Of the close to 5,400 stores the company operates and franchises in the United States, more than 3,600 are franchised. Internationally, 7-Eleven licensees and affiliates operate approximately 34,000 7-Eleven and other convenience stores in countries including Japan, Australia, Taiwan, Singapore, Philippines, Sweden, Denmark, South Korea, Thailand, Norway, Turkey, Malaysia, China, Hong Kong and the U.S. territory of Puerto Rico. 7-Eleven focuses on meeting the needs of convenience-oriented customers by providing a broad selection of fresh, high-quality products and services at everyday fair prices, speedy transactions and a clean and friendly shopping environment. Each store s selection of about 2,500 different products and services is tailored to meet the needs and preferences of local customers. Stores typically vary in size from 2,400 to 3,000 square feet and are most often located on corners for great visibility and easy access. 7-Eleven was No. 2 on Forbes magazine's "Top Franchise for the Money" for 2012, No. 1 in Store Growth by Convenience Store News for 2012, and No. 3 on Forbes magazine's "Top 20 Franchises to Start" for 2011. YOBE FROZEN YOGURT http://www.myyobe.com 7-Eleven is an ideal co-tenant for Yobe Frozen Yogurt, which currently operates 18 locations in Florida, Georgia, South Carolina, and Tennessee. Yobe is in the process of opening an additional 11 stores in Colorado, Kentucky, North Carolina, New York, Oregon, and Texas domestically as well as another 4 stores internationally in Beijing, Dubai, London, and Trinidad & Tobago. 3
Rent roll Square Lease Term Years Rent Rent Lease Tenant Feet GLA Begin End Remain Begin Monthly PSF Annually PSF Type Options / Notes 7-Eleven, Inc. 2,800 76% Aug-12 Aug-22 10 Aug-12 $7,917 $2.83 $95,004 $33.93 NNN* Four (4) Five (5) Year Options Aug-17 $8,708 $3.11 $104,496 $37.32 Option 1 Aug-22 $9,579 $3.42 $114,948 $41.05 Option 2 Aug-27 $10,537 $3.76 $126,444 $45.16 Option 3 Aug-32 $11,591 $4.14 $139,092 $49.68 Opened August 2013 Option 4 Aug-37 $12,750 $4.55 $153,000 $54.64 YB Urbana, Inc. 875 24% Dec-12 Nov-17 5 Dec-12 $2,041 $2.33 $24,500 $28.00 NNN* One (1) Five Year Option dba Yobe Frozen Yogurt Dec-13 $2,041 $2.33 $24,500 $28.00 Dec-14 $2,102 $2.40 $25,235 $28.84 Dec-15 $2,166 $2.48 $25,992 $29.71 Dec-16 $2,230 $2.55 $26,771 $30.60 Option 1 Dec-17 $2,297 $2.63 $27,574 $31.51 Dec-18 $2,366 $2.70 $28,401 $32.46 Dec-19 $2,437 $2.78 $29,253 $33.43 Dec-20 $2,510 $2.87 $30,131 $34.44 Opened December 2012 Dec-21 $2,585 $2.95 $31,035 $35.47 TOTALS 3,675 100% Current $9,958 $119,504 *Landlord responsibility includes roof and structure ADJACENT RETAIL 4
Property photos 5
SURVEY 6
Aerial photograph Atlantic Ocean Atlantic Beach Elementary School Atlantic Boulevard (35,000 Cars / Day) 7
Aerial photograph Atlantic Boulevard (35,000 Cars / Day) Atlantic Ocean 8
LOCATION OVERVIEW IMMEDIATE TRADE AREA The subject property is located along Atlantic Boulevard (35,000 Cars / Day) at Florida Highway A1A (28,097 Cars / Day) in the Neptune Beach retail corridor. The subject property benefits significantly from a location near numerous national credit tenants and 2 blocks from public beach access. Atlantic Boulevard is a primary arterial road and provides the trade area with direct access to downtown Jacksonville. The site is well positioned to capture both local and travelling traffic volume as a result of its location next to the beach and its accessibility. The subject property is adjacent to a Starbucks, Walgreens, and CVS Pharmacy. The site is also near anchor tenants that include Publix, Kmart, JoAnn Fabrics, and Winn Dixie. Ace Hardware, Pier One Imports, UPS Store, Wells Fargo, McDonald s, KFC, Smashburger, Radio Shack, and Jimmy Johns are also nearby. Residential growth in the immediate trade area has been brisk recently. The projected growth rate for the 5-year period ending in 2016 is 6.4% within a 1- mile radius of the subject property. Additionally, the mean annual household income within a 1-mile radius is $73,105. The site proximity to Atlantic Beach Elementary School (504 Students) provides an additional permanent traffic generator. NEPTUNE BEACH, FL & VICINITY Neptune Beach is a beachfront city just east of Jacksonville, FL with a population of 7,120. The city is located in a cluster of beach communities that also includes Jacksonville Beach (Population: 21,362), Atlantic Beach (Population: 13,368), and Ponte Vedra Beach (Population 37,924). 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. Ponte Vedra Beach was 50th on the list of 100 finalists for CNN and Money Magazine's 2005 List of the Best Places to Live. It was the 1 st place in Florida to be named that year and 1 of only 4 areas in the state to make the cut. As of August 1, 2012 the average house costs around $720,000. 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. Jacksonville is the principal city in the MSA and the largest in the state of Florida by population. Jacksonville proper has 821,784 residents and an MSA population of 1,345,596. The city has an established track record of robust population growth. Jacksonville proper has grown at a minimum of 11.7% in every decade since the 1980s. With an area of 885 square miles, Jacksonville is the 2 nd largest city by area in the country and the largest in the lower 48 states. Infrastructure and harbor improvements since the late 19th century have made Jacksonville a major military and civilian deep-water port. Its riverine location facilitates 2 U.S. Navy bases and the Port of Jacksonville, Florida's 3 rd largest seaport. Significant industries in the local economy include services such as banking, insurance, healthcare and logistics. As with much of Florida, tourism is also important to the Jacksonville area, particularly tourism related to golf. Jacksonville's location on the St. Johns River and the Atlantic Ocean proved providential in the growth of the city and its industry. The largest city in the state, it is also the largest deepwater port in the South (as well as the 2ndlargest port on the U.S. East coast) and a leading port in the U.S. for automobile imports, as well as the leading transportation and distribution hub in the state. However, the strength of the city's economy lies in its broad diversification. The area's economy is balanced among distribution, financial services, biomedical technology, consumer goods, information services, manufacturing, insurance and other industries. Jacksonville is home to many prominent corporations and organizations, including the headquarters of 4 Fortune 500 companies: CSX Corporation, Fidelity National Financial, Fidelity National Information Services and Winn- Dixie Stores, Inc. In addition to CSX, the Florida East Coast Railway and the large short line railroad holding company RailAmerica are also based in Jacksonville. 9
LOCATION MAP 10
LOCATION MAP 11
DEMOGRAPHICS Demographic snapshot Radius 1 Mile 3 Mile 5 Mile Population: 2016 Projection 9,088 41,092 101,245 2011 Estimate 8,542 39,139 97,056 2010 Census 8,358 38,536 95,787 Growth 2011-2016 6.40% 5.00% 4.30% Growth 2010-2011 2.20% 1.60% 1.30% Households: 2016 Projection 4,143 18,050 41,249 2011 Estimate 3,877 17,104 39,164 2010 Census 3,793 16,860 38,650 Growth 2011-2016 6.80% 5.50% 5.30% Growth 2010-2011 2.20% 1.40% 1.30% Owner Occupied 2,341 9,799 24,086 Renter Occupied 1,536 7,305 15,078 2011 Avg Household Income $73,105 $68,345 $75,215 2011 Med Household Income $54,781 $50,457 $57,047 2011 Per Capita Income $33,731 $30,373 $31,552 2011 Households by Household Inc: Income Less than $15,000 342 1,626 3,074 Income $15,000 - $24,999 342 1,823 3,260 Income $25,000 - $34,999 441 2,107 3,988 Income $35,000 - $49,999 620 2,901 6,154 Income $50,000 - $74,999 733 3,378 8,260 Income $75,000 - $99,999 514 1,939 5,585 Income $100,000 - $149,999 588 2,052 5,489 Income $150,000 - $199,999 156 718 1,828 Income $200,000+ 140 561 1,525 DOWNTOWN JACKSONVILLE, FL TPC SAWGRASS 17 TH HOLE 12