FOR SALE :: FEE SIMPLE - PDF Free Download

This presentation has been prepared by Avalon Commercial LLC ( Avalon ) on the basis of information obtained from Avalon s client (the Company ) and other public sources, as of the specified date. Avalon nor the Company undertake any duty or obligation to update the information. Neither Avalon nor the Company makes or gives any representation, warranty or guarantee, whether express or implied, that the information contained in this presentation or otherwise supplied to the recipient, at any time by or on behalf of Avalon or the Company whether in writing or not, relating to the offering discussed herein is complete or accurate or that it has been or will be audited or independently verified, or that reasonable care has been taken in compiling, preparing or furnishing the information. This presentation provides a guide only and it is not intended to be exhaustive and, in particular, does not contain disclosure of any of the risks associated with the opportunity. This presentation is not to be construed as investment, tax or legal advice in relation to the relevant subject matter. You must seek your own legal or other professional advice. This presentation may contain statements that are forward-looking statements. These forward-looking statements, which are subject to numerous risks, uncertainties and assumptions, include projections of future financial performance, anticipated growth strategies and anticipated trends in the business. These statements are only predictions based on current expectations and projections about future events, subject to change due to actual results, level of activity, performance or achievements. Any estimate or forecast contained in this presentation is not a promise or representation by Avalon or the Company as to future matters and nothing contained in the information should be relied upon as a representation as to future matters. The projections based on financial and other pro forma data set forth in this presentation were not prepared with a view toward compliance with U.S. Generally Accepted Accounting Principles or any other published standards. Projections and other pro forma data are derived from estimates, as of the date of this presentation, based on certain hypothetical assumptions, which are inherently subject to significant business, economic and competitive uncertainties and contingencies. Independent estimates about the future benefits of the opportunity and pro forma data should be developed by investors before any decision is made on whether or not to invest in the opportunity and investors should not rely on the projections and pro forma data contained herein. Summaries of any documents about the opportunity discussed herein are not intended to be comprehensive or all inclusive, but rather only outline some of the provisions contained therein and are qualified in their entirety by the actual document to which they relate. This presentation does not constitute an offer or invitation to make an investment, in any form, in the opportunity discussed herein. It has been prepared to obtain indications of interest about an investment to be made which will only be made upon the basis of the negotiations and executions of full investment documentation. This is not an offer of an investment opportunity in any jurisdiction where it is prohibited or where a pre-filing or other action is required. You understand that the information is confidential and is furnished solely for the purpose of your review in connection with the opportunity discussed herein. You further understand that the information is not to be used for any other purpose or made available to any other person without the express written consent of Avalon. This offering is subject to prior placement and withdrawal, cancellation or modification without notice. Copyright 2016 Avalon Commercial LLC.

Contents Fee Simple Opportunity 01 Property Summary 03 Market Sales Comparables 04 Tenant Profile 07 Demographics 08

445 Kele Street (Servco)

Maui Commercial Portfolio 1 Fee Simple Opportunity The acquisition of 445 Kele Street offers an excellent opportunity to an investor seeking to acquire leased fee assets in the heart of Kahului on Maui. The opportunity offers investors: Single strong credit corporate tenant with a long term lease. Real property located along the retail corridor of Kahului and minutes from major retailers, Kahului International Airport and Kahului Harbor. Entrance to a market with significant barriers against development. 100% Occupancy. Total Purchase Price: $4,290,000 (5.7% Cap Rate) 445 Kele Street (2) 3-8-079-005 Building Area: 5,158 SqFt Land Area: 42,854 SqFt Zoning: M-2 (Heavy Industrial) Net Operating Income: $242,641 Single-Tenant 100% Occupancy Lexus/Subaru Lease Rent: $242,641 Per Year Lease Expiration: 12/02/18 Escalations: Annual CPI Renewal Options: None

2 Maui Commercial Portfolio 445 Kele Street (Servco)

Maui Commercial Portfolio 3 Property Summary 445 Kele Street Summary Highly visible site along a major thoroughfare to and from the airport. Future possible add-on value by increasing the building s leasable area International credit tenant Tenant pays for all operating expenses directly. No landlord responsibilities. Near retailers Costco, KMart, Home Depot, Lowe s and Target 445 Kele Street is currently leased to Servco Pacific, Inc., which operate the Lexus and Subaru dealerships in Maui. The property is located on the corner of Dairy Road and Kele Street, across from Costco and Kmart. The property has approximately 200 feet of frontage along Dairy Road, which is one of Kahului s main thoroughfares to and from the airport, with over 16,000 vehicles per day driving pass the property daily. Neighboring tenants include BMW of Maui, Acura of Maui, Advantage Rent a Car, Denny s and Krispy Kreme Doughnuts. It consists of approximately 42,853 square feet of land and 5,158 square feet of gross leasable area (GLA), with room to expand the leasable area on the property. The current dealership building and service center was built in 1993. The property is located in Kahului, Hawaii where there are approximately 33,199 people living with in a three mile radius of the property earning an average annual household income of approximately $78,000. Additionally there are approximately 55,792 people living within a five mile radius, with annual household incomes of approximately $86,719. Servco Pacific, Inc. has occupied this location since 1993. The lease has annual increases based on the CPI Index and it is set to expire on December 2, 2018.

4 Maui Commercial Portfolio Although sales activity has ramped up in recent years, Maui s small market footprint yields few sales comparables due to the limited number of opportunities to enter the island s market. The most recent sales activity on Maui in the past year has involved the sale of Maui Mall to Jones Lang LaSalle Income Property Trust which included the individual sale and recordation of properties A and B as noted in the sales comparables herein. Further south, the sale of Ma alaea Harbor Shops adjacent to the Maui Ocean Center rounds out comparable sales on Maui. According to Jones Lang LaSalle s 8K filing, the net operating income of the Maui Mall property was $3.8 million (year ending 2014). The sale yields a 4.4% cap rate on the $86.4 million purchase price. B NOTABLE SALES COMPARABLES A A B C $4,704,460 Recorded 1/4/16 $4,885,635 Recorded 1/4/16 $13,380,000 Recorded 7/24/15 73 Puunene Ave 2-3-7-009-028 Building Area: 9,190 SqFt Land Area: 13,666 SqFt Zoning: B-2 (Commercial) 14 Kaahumanu Ave 2-3-7-009-015 Building Area: 11,400 SqFt Land Area: 25,916 SqFt Zoning: B-2 (Commercial) 300 Maalaea Rd 2-3-6-008-001 & 013 Building Area: 35,696 SqFt Land Area: 165,920 SqFt Zoning: B-2 (Commercial) Tenant(s): American Savings Bank Tenant(s): O Reilly Auto Parts Shopping Center: Ma alaea Harbor Shops C

Maui Commercial Portfolio 5

6 Maui Commercial Portfolio

Maui Commercial Portfolio 7 Servco 445 Kele Street Servco Pacific Inc. operates automotive dealerships that sell new and preowned vehicles in Hawaii and Australia. It offers cars, trucks, SUVs, and vans; parts and accessories; and tires for golf carts and motorcycles, and motocross and moped tires. The company also provides original equipment, and replacement tires and tubes for passenger cars; light, medium, and heavy trucks; construction and mining vehicles; trailers; forklifts; and farm, lawn, and garden vehicles. In addition, it sells, rents, leases, and services a selection of new and used material handling equipment, as well as offers parts; and operates as a wholesale distributor of kitchen appliances and bath accessories in Hawaii.

8 Maui Commercial Portfolio Estimate Percent EMPLOYMENT STATUS Population 16 years and over 126,655 In labor force 87,192 68.80% Civilian labor force 86,920 68.60% Employed 79,364 62.70% Unemployed 7,556 6.00% Armed Forces 272 0.20% Not in labor force 39,463 31.20% Civilian labor force 86,920 Percent Unemployed 8.70% Females 16 years and over 63,575 In labor force 41,834 65.80% Civilian labor force 41,780 65.70% Employed 38,782 61.00% Own children under 6 years 11,422 All parents in family in labor force 8,500 74.40% Own children 6 to 17 years 21,993 All parents in family in labor force 17,555 79.80% CLASS OF WORKER Civilian employed population 16 years and over 79,364 Private wage and salary workers 59,953 75.50% Government workers 11,906 15.00% Self-employed in own not incorporated business workers 7,128 9.00% Unpaid family workers 377 0.50% INCOME AND BENEFITS (IN 2014 INFLATION-ADJUSTED DOLLARS) Total households 53,131 Less than $10,000 2,557 4.80% $10,000 to $14,999 2,052 3.90% $15,000 to $24,999 4,488 8.40% $25,000 to $34,999 4,452 8.40% $35,000 to $49,999 6,897 13.00% $50,000 to $74,999 9,993 18.80% $75,000 to $99,999 7,829 14.70% $100,000 to $149,999 8,591 16.20% $150,000 to $199,999 3,257 6.10% $200,000 or more 3,015 5.70% Median household income (dollars) 64,567 Mean household income (dollars) 84,035 Nonfamily households 16,975 Median nonfamily income (dollars) 40,901 Mean nonfamily income (dollars) 54,611 Median earnings for workers (dollars) 31,579 Median earnings for male full-time, year-round workers (dollars) 42,488 Median earnings for female full-time, year-round workers (dollars) 37,704

Maui Commercial Portfolio 9 315.01 2010 Total Population by Census Tract 315.03 315.02 308 309.03 Subject Properties 305.01 302.02 0-2,500 2,501-5,000 5,001-7,500 7,501-11,012 314.02 314.05 311.02 310 311.03 311.01 319 304.04 302.01 320 304.02 304.03 307.05 0 2.5 5 10 Miles 307.07 307.08 307.10 303.03 303.01 301 Male & Female Male Female Total 154,834 100.00% 77,587 50.10% 77,247 49.90% Under 5 years 10,020 6.50% 5,161 3.30% 4,859 3.10% 5 to 9 years 9,886 6.40% 5,065 3.30% 4,821 3.10% 10 to 14 years 9,816 6.30% 4,932 3.20% 4,884 3.20% 15 to 19 years 9,415 6.10% 4,942 3.20% 4,473 2.90% 20 to 24 years 8,318 5.40% 4,231 2.70% 4,087 2.60% 25 to 29 years 10,180 6.60% 5,089 3.30% 5,091 3.30% 30 to 34 years 10,331 6.70% 5,285 3.40% 5,046 3.30% 35 to 39 years 10,291 6.60% 5,286 3.40% 5,005 3.20% 40 to 44 years 11,018 7.10% 5,596 3.60% 5,422 3.50% 45 to 49 years 11,897 7.70% 5,913 3.80% 5,984 3.90% 50 to 54 years 12,365 8.00% 6,268 4.00% 6,097 3.90% 55 to 59 years 11,646 7.50% 5,834 3.80% 5,812 3.80% 60 to 64 years 9,848 6.40% 5,034 3.30% 4,814 3.10% 65 to 69 years 6,829 4.40% 3,361 2.20% 3,468 2.20% 70 to 74 years 4,405 2.80% 2,062 1.30% 2,343 1.50% 75 to 79 years 3,240 2.10% 1,473 1.00% 1,767 1.10% 80 to 84 years 2,671 1.70% 1,079 0.70% 1,592 1.00% 85 years and over 2,658 1.70% 976 0.60% 1,682 1.10% Median age (years) 39.6 39 40.3 16 years and over 123,191 79.60% 61,433 39.70% 61,758 39.90% 18 years and over 119,019 76.90% 59,258 38.30% 59,761 38.60% 21 years and over 114,189 73.70% 56,721 36.60% 57,468 37.10% 62 years and over 25,348 16.40% 11,778 7.60% 13,570 8.80% 65 years and over 19,803 12.80% 8,951 5.80% 10,852 7.00%

OFFERING MEMORANDUM MAUI INVESTMENT OPPORTUNITY FOR SALE :: FEE SIMPLE 445 Kele Street Kahului, Maui Tim Lee RA (RS-69814) Managing Director Investment Sales 808 587 7770 (Office) 808 369 1139 (Direct) tl@avalonhi.com Phone Address Queens Court Suite 501 800 Bethel Street Honolulu, HI 96813 United States of America P : (808) 587-7770 F : (808) 587-7769 Email info@avalonhi.com