ISLANDS SHOPPING

CENTER

OFFERING MEMORANDUM

216 JOHNNY MERCER LOT 2A & 2B

Affiliated Business DisclosureCBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgement of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).

Confidentiality AgreementYour receipt of this Memorandum constitutes your acknowledgement that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.

DisclaimerThis Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.

The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.

© 2019 CBRE, Inc. All Rights Reserved.

Table of Contents

ISLANDS SHOPPING CENTER

EXECUTIVE SUMMARY

SUMMARY OF OFFERING

TENANTS PROFILE

WILMINGTON ISLAND AND SAVANNAH

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Located on Wilmington Island with 24,200 daily traffic count on Johnny Mercer Boulevard.

Near major retail including banks, grocers, USPS, Ace Hardware and the Doller Store.

Major access roads within 1-2 miles include US Hwy 80 and the Islands Expressway to the Historic District of Savannah.

Affluent population with average household income of $89,000+ within a 3 mile radius.

Long term tenancy of favorite local spots, including Cancun Mexican restaurant and Tech Yeah.

EXECUTIVE SUMMARY

Property Highlights

Summary of Offering216 JOHNNY MERCER SAVANNAH GA 31416

SQUARE FOOTAGE 8,052

LOTS Lots 2A & 2B

LAND AREA 2A .55 acre

LAND AREA 2B .34 acre

ZONING P-B-C/TC - Planned Community Business-Town Center

YEAR BUILT 1984

OCCUPANCY 100%

NOI $84,928

PRICE $1,040,000

216 JOHNNY MERCER BLVD

Adam Avant

Tammy’s

JOHNNY MERCER BLVD

JOHNNY MERCER BLVD

WILMINGTON ISLAND RD

WILMINGTON ISLAND RD

Tenant ProfilesCANCUN – local favorite Mexican spot in

operation for 26 years.

TECH YEAH - computer service and repair for over 8 years.

TAMMY’S ALTERATIONS – alteration service for 16 years

SAVANNAH WASTE – office for 7 years.

COLOR GEEK – local beauty salon operating for 9 years.

ADAM AVANT WEB DESIGN OPERATOR of Tech Yeah opened web design 2 years ago.

POPULATION 1 MILE 3 MILES 5 MILES2019 Population - Current Year Estimate 5,154 24,612 41,8222024 Population - Five Year Projection 5,246 25,165 42,7912010 Population - Census 5,016 23,758 39,4962000 Population - Census 4,876 22,299 37,8772010-2019 Annual Population Growth Rate 0.29% 0.38% 0.62%2019-2024 Annual Population Growth Rate 0.35% 0.45% 0.46%HOUSEHOLDS

2019 Households - Current Year Estimate 2,211 10,227 16,0282024 Households - Five Year Projection 2,247 10,442 16,4212010 Households - Census 2,162 9,906 15,4662000 Households - Census 1,970 8,671 14,3102010-2019 Annual Household Growth Rate 0.24% 0.35% 0.39%2019-2024 Annual Household Growth Rate 0.32% 0.42% 0.49%2019 Average Household Size 2.33 2.41 2.42HOUSEHOLD INCOME

2019 Average Household Income $95,394 $104,453 $98,0912024 Average Household Income $106,831 $116,802 $109,6142019 Median Household Income $76,351 $80,770 $75,0892024 Median Household Income $81,667 $86,875 $80,9322019 Per Capita Income $40,045 $43,569 $37,7952024 Per Capita Income $44,834 $48,635 $42,274HOUSING UNITS

2019 Housing Units 2,377 11,020 17,4372019 Vacant Housing Units 166 7.0% 793 7.2% 1,409 8.1%2019 Occupied Housing Units 2,211 93.0% 10,227 92.8% 16,028 91.9%2019 Owner Occupied Housing Units 1,473 62.0% 7,271 66.0% 10,869 62.3%2019 Renter Occupied Housing Units 738 31.0% 2,956 26.8% 5,159 29.6%EDUCATION

2019 Population 25 and Over 3,855 18,060 28,570HS and Associates Degrees 1,987 51.5% 8,636 47.8% 14,310 50.1%Bachelor’s Degree or Higher 1,676 43.5% 8,827 48.9% 12,796 44.8%PLACE OF WORK

2019 Businesses 207 519 8792019 Employees 1,588 3,927 7,794

Demographics

Survey

WILMINGTON ISLAND AND SAVANNAHWilmington Island is a beautiful, quiet coastal community. Wilmington Island offers waterfront neighborhoods with good schools. With a median home value of $238,100 and median household income over $75,000, Wilmington Island attracts educated families which support the multiple grocery stores, restaurants, banks, and small businesses. It’s access to coastal waters is excellent for inshore sport fishing and recreational boating. Located between historic downtown Savannah and Tybee Island, most Wilmington residents are within a ten minute drive to work or to the beach.

Savannah is the oldest city in the state of Georgia and is the county seat of Chatham County. Established in 1733 on the Savannah River, the city of Savannah became the British colonial capital of the Province of Georgia and later the first state capital of Georgia. A strategic port city in the American Revolution and during the American Civil War, Savannah is today an industrial center and an important Atlantic seaport. It is Georgia’s fifth-largest city and third-largest metropolitan area.

Each year Savannah attracts millions of visitors to its cobblestone streets, parks, and notable historic buildings: the birthplace of Juliette Gordon Low (founder of the Girl Scouts of the USA), the Georgia Historical Society (the oldest continually operating historical society in the South), the Telfair Academy of Arts and Sciences (one of the South’s first public museums), the First African Baptist Church (one of the oldest African-American Baptist congregations in the United States), Temple Mickve Israel (the third oldest synagogue in America), and the Central of Georgia Railway

roundhouse complex (the oldest standing antebellum rail facility in America).

Savannah’s downtown area, which includes the Savannah Historic District, the Savannah Victorian Historic District, and 22 parklike squares, is one of the largest National Historic Landmark Districts in the United States, having been designated by the U.S. government in 1966. Downtown Savannah largely retains the original town plan prescribed by founder James Oglethorpe, which is a design now known as the Oglethorpe Plan. Savannah was also the host city for the sailing competitions during the 1996 Summer Olympics held in Atlanta.

Savannah’s local market region extends in a 40-mile radius from its historic downtown. Commuters, shoppers, students, visitors, and others are economically and socially linked in a primary trade area that includes Liberty and Long counties in the Hinesville/Ft. Stewart MSA and portions of Beaufort and Jasper counties in South Carolina. Chatham County, with just over 283,000 residents is the fifth most populous county in Georgia and serves as the economic hub of the region. Furthermore, about 660,000 people now live, work, and shop in the Savannah Primary Trade Area, which from 2000 to 2014, added about 5,700 net new residents a year.

Savannah is a cosmopolitan community with a European flair and “good bones” as exhibited by its strong business community and advanced infrastructure. While residents and visitors enjoy its rich historical tradition, Savannah continues to improve its business environment, infusing the area with advantages that benefit its major industries: manufacturing,

distribution, tourism, military, port operations, health care, and its growing presence of innovative technology firms and entrepreneurs.

The Savannah MSA is comprised of Bryan, Chatham, and Effingham counties in Georgia; its total population was estimated at 389,494 in 2018. In the official 2010 census, the Savannah MSA had a population of 347,611, an 18.6 percent increase from the 2000 population of 293,000.

The Savannah MSA is the third most populous of fourteen Georgia MSAs (ranked after Atlanta and Augusta) as well as one of the fastest-growing metro areas in the state for the period 2000-2010.

The Hinesville Fort Stewart MSA can be included to form the Savanna Hinesville Statesboro Combined Statistical Area (CMSA), comprising six counties and totaling 459,397 residents. In 2016, Savannah’s employment will rise by 3.1 percent, or 5,300 jobs, about the same as it has for the past two years.

Savannah’s growth prospects are among the best in the nation. Visitors are drawn to the thriving historic district, and waterfront developments. Hotel development has been and will continue to be very strong in 2019. Retirees will continue to be an important force powering and diversifying the region’s economic development, but the Savannah area will benefit from the fact that its population is increasing for all age groups.

MILITARYFort Stewart, located just outside of the Savannah MSA, and Hunter Army Airfield generate sufficient economic activity to warrant inclusion of Liberty and Long counties in the larger Savannah CMSA. Ft. Stewart and Hunter AAF have an annual financial impact of about $5.6 billion. Fort Stewart is the largest military installation east of the Mississippi River and covers nearly 285,000 acres.

Ft. Stewart and Hunter AAF together are one of Coastal Georgia’s largest employers. The ratio of military to civilian employees is approximately six to one, with 22,422 officers and enlisted military and 3,891 civilians employed at both installations. Ft. Stewart accounts for nearly three-fourths of the military employment in the area.

MILITARY FORECASTFort Stewart and Hunder Army Airfield are headquarters to the U.S. Army’s 3rd Infantry Division and comprise one of Coastal Georgia’s largest employers, with more than 22,000 military and 5,773 civilian employees. Total payroll for both bases is estimated at well over one billion dollars and with an annual financial impact of four to five billion dollars. Fort Stewart and Hunter AAF continue to play an important role in the regional economy.

MANUFACTURINGThe Savannah MSA’s manufacturing firms created approximately 20.1% of the area’s economic output as measured by GDP, accounting for $3.2 billion of output

in 2014. As of mid-2015, the number of manufacturing establishments in the Savannah CMSA was 287 firms employing 19,398 workers. The average weekly wage was $1,552 for manufacturing establishments in the Savannah MSA.

PORT OF SAVANNAH • The 4th largest port and the fastest-growing container

port by TEU’s in the U.S. • The Port’s Garden City Terminal is the largest single

container terminal in North America • The Terminal covers 1,200 acres with 9,700 ft of

contiguous berthing space and 30 container cranes with six additional Neo-Panamax cranes arriving by 2020, the facility will be able to move nearly 1,300 containers per hour

• The $1.4 billion Savannah Harbor Expansion Project (SHEP) is underway to deepen its navigation channel from 42 feet to 47 feet, enabling larger and heavier vessels to call on the port

• Rail connectivity to every major destination east of the Mississippi via two Class I railroads, Norfolk Southern and CSX Transportation

• The Mason Mega Rail project will deliver the largest on-dock intermodal rail facility for a port authority in North America, doubling the Port of Savannah’s rail lift capacity to 1 million TEU’s per year with an expected completion date of 2020

• 2018 was a record year for the growing Georgia Port Authority:

» Total tonnage CY 2018: 36.9 million, up 22% over CY 2014 (an increase of 5.3% over CY 2017)

» Total TEUs CY 2018: 4.35 million, a 30% increase over CY 2014 (8.0% over CY 2017)

» Autos CY 2018: 630,000 units » Bulk cargo CY 2018: 1.8 million tons

The Port of Savannah offers many advantages: • The most global services among U.S.

Southeast & Gulf ports • Asian transit times as low as 22 days and 11-day

express service to and from Eu-rope • Largest single-terminal container facility (Garden

City) in the U.S. which also features the longest contiguous dock in the U.S. – 9,693 feet

• Largest Southeast refrigerated container export terminal

• One-of-a-kind infrastructure featuring two intermodal container transfer facilities located on a single terminal served by CSX Transportation &

Norfolk Southern Railroad • Inspection offices for U.S. Customs & Border Protection

and Dept. of Agriculture are on-terminal • Immediate access to two major interstate highways – I-95

(North/South) and I-16 (East/West) • Largest concentration of retail import distribution centers

(DCs) along the East Coast • Client Relations Center – one-stop customer solutions

group for all port users

The Georgia Ports Authority operates two deep water terminals in Savannah – Garden City and Ocean Terminal.

Garden City Terminal:

• A 500-foot channel width and a secured, dedicated 1,200-acre single-terminal container facility

• 1.4 million square feet of covered storage, including 722,000 square feet of cold storage off terminal

Ocean Terminal:

• A 200.4 -acre general cargo terminal features 9 berths totaling 5,768 linear feet

• Handles RoRo, breakbulk, containers, heavy-lift and project cargo

• Over 1.4 million square feet of covered storage

THE PORT OF SAVANNAH FORECASTThe Port of Savannah has made a number of investments to ensure its continued growth following the Panama Canal expansion. The Port of Savannah has invested $1 billion in capital investment over past 10 years, planning for $2.5 billion in the next 10 years.

Savannah Harbor Expansion Project

• The largest port improvement project in the U.S. • Nearing completion, the long-awaited dredging of the

38-mile stretch of the Savannah River that leads to the harbor is currently underway and is scheduled for completion as early as 2020.

• The project will deepen the inner harbor from 42’ to 47’ and double throughput capacity to eight million TEUs by 2028

Mason Mega Rail Project

• The project will deliver the largest on-dock intermodal rail facility for a port authority in North America

• 100,000 feet of new rail will double capacity to 1 million TEUs

• New capacity will be operational in December 2019 NS Yard and December 2020 CSX Yard

TOURISMSavannah exudes a beauty and charm that few, if any, destinations can match. Savannah’s tourism and hospitality industry continues to be one of the largest economic drivers of Savannah. Travel to Savannah remains strong and the city enjoys visitors from all over the world. Most recently, the city was named “A World’s Best City for United States & Canada” by Travel & Leisure.

Tourism remains one of the biggest economic drivers in the region, with Savannah, Chatham County and nearby Tybee Island setting record of 8 million overnight stays in 2017. Direct spending by visitors accounted for a nearly $2.9 billion impact on the local economy and visitors stayed in Savannah longer. The typical Savannah tourist is well educated and has above average income.

Savannah is full of activity year-round. Although the busiest months in terms of visitation are April, May, and June, tourism activity is spread fairly evenly across the year. For overnight visitors, the mix is 89% leisure travel and 11% business and business-leisure. Over-night visitors stay approximately 2.4 nights in Savannah.

Savannah excels in special interest tourism activities and continues to be an exciting destination. Savannah’s distinctive qualities allow the city to stand out in the crowd. In top interest categories for overnight visitors, Savannah remains far ahead of typical national levels.

TOURISM FORECASTThe leisure and hospitality sector continued to grow steadily with the total number of day and over-night visitors increasing to 14.1 million in 2017. Direct spending increased 9.2% to $2.9 billion and further supported the growing diversification in boutique retailing. Overnight person stays increased to 8 million and hotel room tax revenue set another record by reaching $25.5 million.

Special interest tourism activities such as visiting historic places, seeing cultural attractions, and enjoying exceptional culinary experiences are in high demand among Savannah’s leisure tourists compared to national averages. Savannah is unique positioned to satisfy this demand and is poised to continue as a major visitor destination in 2019.

FINANCIAL DISCLOSURE: LEASES AND RENT

ROLL CAN BE OBTAINED BY SIGNING A

CONFIDENTIALITY AGREEMENT.

ISLANDS SHOPPING

CENTER

OFFERING MEMORANDUM

216 JOHNNY MERCER LOT 2A & 2B

© 2019 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this document are the property of their respective owners, and the use of such logos does not imply any affiliation with or endorsement of CBRE. Photos herein are the property of their respective owners. Use of these images without the express written consent of the owner is prohibited. PMStudio_August2019

CONTACT INFORMATIONELIZABETH DEWITTVice President+1 912 228 3528elizabeth.dewitt@cbre.com

CBRE, Inc.+1 912 228 3528Savannah, GA 31401