Offering Memorandum

Retail/Office Center

2500 –2512 S. Hopkins Ave., Titusville FL 32780

Presented by Bruce S. Preble, CCIM

239-537-5299

Commercial Realty Specialists LLC 1216 SW 4th St. Suite 3, Cape Coral FL 33991

This information has been secured from sources deemed to be reliable. We make no representations or warranties, ex-pressed or implied, as to the accuracy of the information. References to square footage and age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.

Miracle Plaza

Titusville FL

Table of Contents

1. Property Location

2. Property Summary

3. Financial Overview

4. Financial Prospective

5. Property Description & Photos

6. Location Overview and Detailed Demographics

Map of Drive Time Areas

Demographics Summary by Drive Time Area

Property Highlights

Fully Leased with national brand tenants Edward Jones® Advisors and Metro PCS in place

Retail and Office Space 7,080 Square Feet — 0.39 Acres

Excellent Exposure: S. Hopkins Ave. with 136 ft of frontage

Located across the street from EPIC Theatres and Parrish/Mayo Medical Center at the western exit/entrance for Titus Landing

Shadow anchored by Titus Landing, the newest shopping destination and life style center in the Space Coast

Building Signage, Masonry Construction, Renovated in 2016: New A/C Units, New Façade, New Sidewalk, Parking Lot Resurfaced, As Needed Electrical and Plumbing Updates, Extensive Interior Renovation

Ample Parking—12 spaces, City Water and Sewer

PROPERTY LOCATION

The Miracle Plaza shopping center is located on Hopkins Avenue, a major north-south route, along a fast growing commercial corridor in Titusville, Florida. The property is located near the western exit of the newly developed Titus Landing, across the street from Parrish/Mayo Medical Center and the Epic Theatres. As one of the Space Coast’s newest shopping and lifestyle destinations Titus Landing develops the local traffic is anticipated to increase from 24,000 vehicles per day to more than 55,000 vehicles per day.

Within the 125 square mile Titusville trade area (an elongated corridor bordered by I-95 and the Atlantic Ocean), there is a population base of 155,000, contained in ap-proximately 67,400 households, with an average household income of $70,489, and a median household income of $53,061.

PROPERTY SUMMARY

Location 2500 –2512 S. Hopkins Ave. Titusville FL 32780

General Description Freestanding retail and office center, renovated in 2016 (built

Real Estate—Building 6,750 leased sf (7,080 sf actual), Masonry construction

Real Estate—Lot Size 0.39 acres, Zoning CC, 133.8 ft frontage , 126.67 ft depth

Offer Price $599,000

Parking 12 surface spaces; ratio of 1.52/ 1000 sf

Brevard County Parcel ID

Legal Description

Real Estate Taxes

22-35-15-AZ00000.0-0010.01

BAYVIEW W 126.7 FT OF LOT 10 AS DES IN ORB 663 PG 347

Submarket—Brevard County

Vacancy Rates Subject Property: 0%; Submarket: 7.2%

NNN Asking Rents Submarket: $12.77/sf/yr

Sales Actitivity 12 month sales price : $169 per sf: in submarktet

Population 26,422 within 10-15 min drive time

Median Household Income $53,284 within 10-15 min drive time

Lease Type Modified Gross

Tenant Suite Address Leased Square Footage

Lease Start Date

Lease End Date

Monthly RentAnnual Rent Rate

Best Appliances 2500 1500 08/2016 7/31/2020 $1184.50$9.48/sf/yr

3% Annual Escalation

DIYM Catering 2502 900 05/2018 4/30/2020With 2-year

option

$750$10/sf/yr

Escalation Based on CPI

Southern Roots Salon

2504 900 07/2016 5/31/2020 $700$9.33/sf/yr

Escalation Based on CPI

Metro PCS 2506-2508 1650 8/2016 7/2019Three 3-year

options

$1250$9.09/sf/yr

6% Annual Escalation

Titusville Upholstery

2510 900 7/2017 6/30/2019With 2-year

option

$700$9.33/sf/yr

Escalation Based on CPI

Edward Jones Financial Advisors

2512 900 7/2017 7/31/2022 $713.75$9.51/sf/yr

2% Annual Escalation

Building Total 6750 $5,298.25$9.42/sf/yr

Rent Roll:

FINANCIAL OVERVIEW

2018

Annualized

2019

Projected

2020

Projected Proforma

TOTAL RENTS $60,735 $64,301 $66,335 $84,375

EXPENSES

Property Management Fees $2745 $3600 $3600 $4000

REPAIRS AND MAINTENANCE

General Building Repairs $1500 $1500 $1500 $2000

Landscaping $1633 $1500 $1500 $2000

HVAC $1765 $1800 $1800 $1800

Pest Control $ 450 $ 450 $450 $450

UTILITIES

Electric Power (Exterior) $ 426 $ 450 $450 $450

REAL ESTATE TAXES

PROPERTY INSURANCE

TOTAL EXPENSES

$6976

$4700

$20,195

$7000

$4700

$21,000

$7000

$4700

$21,000

$8000

$4700

$23,400

NET OPERATING INCOME $40,540 $43,301 45,355 $60,975

Rents for 2018-2020 calculated based on stabilized existing leases.

Proforma rents based on current market rents for similar properties according to Cos-tar ($12.50/sf/yr)

Potential adjustments to lease structure could generate an additional 10% , for exam-ple requiring tenant leases to include payment for real estate taxes or adjusting leases

The potential income for the Miracle Plaza can increase significantly in the near future. There are several important factors to consider:

1) The development of Titus Landing lifestyle center will have a major impact on fu-ture rental income from this property. The Titus Landing developers have estimated that the increase in vehicle traffic will more than double in the area. Miracle Plaza has a high visibility location at the western entrance to Titus Landing across the street from the Epic Theatres (multiplex) and the Parrish/Mayo medical facility.

2) Current rents are below market. CoStar Realty Information, Inc., indicates that the asking rents in the Brevard County submarket for comparable properties is $12.77/sf/yr. The most recent Miracle Plaza lease (commencing in May 2018) started at $10/sf/yr. With other leases dating from 2016 and 2017 the property average rent is $9.40/sf/yr with lots of room for improvement. With improvements in vehicular traffic (exposure) and the local economy rents should be brought closer to market providing a potential 35% increase in revenues.

FINANCIAL PROSPECTIVE

3) The actual rentable space in the building is understated in the rent roll. The cur-rent GLA according to the rent roll is 6750 sf; however, the actual building dimen-sions (excluding the exterior porch) indicate that according to BOMA standards the rentable area is 7,080 sf, 5% more than the rent roll.

4) The current leasing structure should be changed. The current leases are modified gross without “Additional Rents.” For example, the real estate taxes are paid by the landlord. Industry standards call for tenants to pay additional rents which can include real estate taxes, insurance, parking lot and landscaping maintenance, and may include reserves for roof repair, exterior painting, and parking lot resurfacing. Just adding the a prorata share of the real estate taxes would increase net revenues by 10%. In addi-tion, it is not unusual to escalate the base rent annually by a nominal percentage (3%-5%) or an adjustment tied to the rate of inflation.

5) Economic growth in the Space Coast has been renewed. In addition to the NASA and US Air Force facilities, access to space is growing with the blossoming commer-cial space industry which is clustering in and around Kennedy Space Center (10 miles from Miracle Plaza). With companies like SpaceX, Blue Origin, United Launch Alliance, and others establishing a permanent presence, the number of launches has increased dramatically and cost of access to space is decreasing, bring more technolo-gies related companies (and employees) to the area. Port Canaveral (16 miles from Miracle Plaza) is the nation’s second busiest cruise port and has an emerging cargo industry.

PROSPECTIVE

PROPERTY DESCRIPTION

Aerial View of Site

Front View Of Building

PROPERTY DESCRIPTIONNeighborhood

View of Miracle Plaza from the Entrance to Titus Landing

Rivertowne Plaza (2690 S Hopkins Ave.) nearby Miracle Plaza

View of Titus Landing Entrance from Miracle Plaza

Site Map2500 S Hopkins Ave, Titusville, Florida, 32780 Prepared by Commercial Realty Specialists

LLCDrive Time Bands: 0-5, 5-10, 10-15 minute radii Latitude: 28.58613Longitude: -80.80613

September 12, 2018

©2018 Esri Page 1 of 1

Executive Summary2500 S Hopkins Ave, Titusville, Florida, 32780 Prepared by EsriDrive Time Bands: 0-5, 5-10, 10-15 minute radii Latitude: 28.58613

Longitude: -80.80613

0 - 5 minute 5 - 10 minute 10 - 15 minutePopulation

2000 Population 8,989 23,322 24,6972010 Population 9,759 25,014 25,6822018 Population 10,757 26,600 26,4222023 Population 11,491 28,257 27,3952000-2010 Annual Rate 0.83% 0.70% 0.39%2010-2018 Annual Rate 1.19% 0.75% 0.34%2018-2023 Annual Rate 1.33% 1.22% 0.73%2018 Male Population 48.0% 48.0% 49.4%2018 Female Population 52.0% 52.0% 50.6%2018 Median Age 44.6 46.3 47.2

In the identified area, the current year population is 26,422. In 2010, the Census count in the area was 25,682. The rate of change since 2010 was 0.34% annually. The five-year projection for the population in the area is 27,395 representing a change of 0.73% annually from 2018 to 2023. Currently, the population is 49.4% male and 50.6% female.

Median Age

The median age in this area is 44.6, compared to U.S. median age of 38.3.Race and Ethnicity

2018 White Alone 69.5% 80.9% 85.1%2018 Black Alone 23.0% 12.5% 8.7%2018 American Indian/Alaska Native Alone 0.6% 0.5% 0.6%2018 Asian Alone 1.7% 1.6% 1.5%2018 Pacific Islander Alone 0.0% 0.1% 0.2%2018 Other Race 2.0% 1.3% 1.2%2018 Two or More Races 3.3% 3.2% 2.7%2018 Hispanic Origin (Any Race) 9.2% 8.4% 7.3%

Persons of Hispanic origin represent 7.3% of the population in the identified area compared to 18.3% of the U.S. population. Persons of Hispanic Origin may be of any race. The Diversity Index, which measures the probability that two people from the same area will be from different race/ethnic groups, is 36.7 in the identified area, compared to 64.3 for the U.S. as a whole.

Households2000 Households 4,098 9,974 9,4302010 Households 4,379 10,979 10,4792018 Total Households 4,758 11,599 10,7032023 Total Households 5,057 12,284 11,0622000-2010 Annual Rate 0.67% 0.96% 1.06%2010-2018 Annual Rate 1.01% 0.67% 0.26%2018-2023 Annual Rate 1.23% 1.15% 0.66%2018 Average Household Size 2.25 2.27 2.46

The household count in this area has changed from 10,479 in 2010 to 10,703 in the current year, a change of 0.26% annually. The five-year projection of households is 11,062, a change of 0.66% annually from the current year total. Average household size is currently 2.46, compared to 2.44 in the year 2010. The number of families in the current year is 7,318 in the specified area.

Data Note: Income is expressed in current dollarsSource: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2018 and 2023. Esri converted Census 2000 data into 2010 geography.

September 12, 2018

©2018 Esri Page 1 of 2

Executive Summary2500 S Hopkins Ave, Titusville, Florida, 32780 Prepared by EsriDrive Time Bands: 0-5, 5-10, 10-15 minute radii Latitude: 28.58613

Longitude: -80.80613

0 - 5 minute 5 - 10 minute 10 - 15 minuteMedian Household Income

2018 Median Household Income $41,130 $43,978 $53,2842023 Median Household Income $46,941 $50,319 $59,4832018-2023 Annual Rate 2.68% 2.73% 2.23%

Average Household Income

2018 Average Household Income $59,138 $59,660 $68,1682023 Average Household Income $70,205 $70,530 $79,4302018-2023 Annual Rate 3.49% 3.40% 3.11%

Per Capita Income2018 Per Capita Income $26,377 $26,105 $27,7822023 Per Capita Income $31,141 $30,662 $32,2382018-2023 Annual Rate 3.38% 3.27% 3.02%

Households by IncomeCurrent median household income is $53,284 in the area, compared to $58,100 for all U.S. households. Median household income is projected to be $59,483 in five years, compared to $65,727 for all U.S. households

Current average household income is $68,168 in this area, compared to $83,694 for all U.S. households. Average household income is projected to be $79,430 in five years, compared to $96,109 for all U.S. households

Current per capita income is $27,782 in the area, compared to the U.S. per capita income of $31,950. The per capita income is projected to be $32,238 in five years, compared to $36,530 for all U.S. households Housing

2000 Total Housing Units 4,670 11,282 10,1782000 Owner Occupied Housing Units 2,176 7,005 7,9072000 Renter Occupied Housing Units 1,921 2,969 1,5232000 Vacant Housing Units 573 1,308 748

2010 Total Housing Units 5,570 13,082 11,8752010 Owner Occupied Housing Units 2,440 7,704 8,4742010 Renter Occupied Housing Units 1,939 3,275 2,0052010 Vacant Housing Units 1,191 2,103 1,396

2018 Total Housing Units 5,993 13,857 12,1512018 Owner Occupied Housing Units 2,380 7,784 8,3162018 Renter Occupied Housing Units 2,377 3,814 2,3872018 Vacant Housing Units 1,235 2,258 1,448

2023 Total Housing Units 6,329 14,667 12,5552023 Owner Occupied Housing Units 2,618 8,414 8,7582023 Renter Occupied Housing Units 2,439 3,870 2,3042023 Vacant Housing Units 1,272 2,383 1,493

Currently, 68.4% of the 12,151 housing units in the area are owner occupied; 19.6%, renter occupied; and 11.9% are vacant. Currently, in the U.S., 56.0% of the housing units in the area are owner occupied; 32.8% are renter occupied; and 11.2% are vacant. In 2010, there were 11,875 housing units in the area - 71.4% owner occupied, 16.9% renter occupied, and 11.8% vacant. The annual rate of change in housing units since 2010 is 1.03%. Median home value in the area is $148,464, compared to a median home value of $218,492 for the U.S. In five years, median value is projected to change by 3.56% annually to $176,844.

Data Note: Income is expressed in current dollarsSource: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2018 and 2023. Esri converted Census 2000 data into 2010 geography.

September 12, 2018

©2018 Esri Page 2 of 2