ST. AUGUSTINE, FLORIDA OFFER PRICE $3,637,148

Representative photo

INVESTMENT OFFER ING MEMORANDUM

ST. AUGUSTINE, FLORIDA

REPRESENTATIVE PHOTO

OFFER PRICE$3,637,148

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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.

Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited.

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.

GREGORY M. DALTON Senior Vice President Lic. 00525726+1 916 781 4816 [email protected]

PAM WILLETTS Client Services Specialist Lic. 00909593 +1 916 781 4831 [email protected]

MARK DRAZEK Senior Vice President +1 407 839 31233 [email protected]

CBRE, INC 1512 Eureka RoadSuite 100Roseville, CA 95661

LOCAL LICENSEEINVESTMENT CONTACT

2205 SR 16 , ST. AUGUST INE , F L 32084

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View all our available properties at:

www.cbre.com/inv-sac-netleaseCapital Markets | Net Lease Property Group

04 The Offering

Summary

05 Lease Abstract

06 Rent Schedule 07 Site Plan

08 Construction Photos

09 Tenant Overview

10 Franchisee Overview

11 Demographics/Traffic Counts

12 The Market - St Augustine

13 Aerial View

14 Retail Neighbors

TABLE OF CONTENTS


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Gregory M. Dalton of CBRE’s Net Lease Property Group is pleased to present an under construction Zaxby’s quick serve restaurant (with drive-thru), anticipated to open for business October 2019, in a most strategic location at the southeast quadrant of Florida SR 16 and US 95 about 5 miles from the center of the centuries-old city of St. Augustine. The immediate area, including a major interchange and a direct artery into St. Augustine, boasts premium outlet malls, fast foods, casual dining restaurants and many lodging chains. Operated by a strong, established local franchisee, this restaurant is ideally located for the traveler, outlet shopper, vacationer or local.

• $3,637,148

• 5.75% cap rate

• 20 year lease

• Absolute NNN lease - no landlord responsibilities

• Rare annual increases throughout term and options

• Tax free state

• Experienced operator with personal guarantee

• Brand new 2019 construction - anticipated October 2019 completion

• Drive-thru - stores with drive-thrus typically generate higher sales than those without

• Hard corner signalized intersection

• Major interstate highway running the entire east coast

• Combined traffic counts exceed 124,500 AADT

• Nearby premium outlet malls, boasting many of the world’s finest outlets

THE OFFERING SUMMARY

Initial Annual Rent $209,136

Initial Net Operating Income $209,136

Initial Monthly Rent $17,428

Initial Annual Rent psf $57.27

Lease Type Absolute net net net

Original Lease Term 20 years

Lease Expiration 2039 (approximate)

Building Size ±3,652 square feet

Land Area ±0.92 acre

Options to Renew Four 5-year options to renew

Financial Information Disclaimer: You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.


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LEASE ABSTRACTTenant:Contentment Foods Anastasia, Inc, a Florida corporation

Guarantor: D. Matthew Strickland and Tara Strickland

Address: 2205 SR 16 St. John’s County St. Augustine, FL 32084

Initial Annual Rent: $209,136

Initial Monthly Rent: $17,428

Initial Annual Rent psf:$57.27

Rent Increases: 1.4% per annum throughout initial and Option terms

Building Size:±3,652 square feet

Land Area:±.92 acre

Lease Type: Absolute net net net

Lease Term: 20 years

Lease Commencement: Anticipated 4th quarter (October) 2019

Lease Expiration: 2039 (Anticipated)

Options to Renew:Four 5-year options to renew with annual increases of 1.4%. Notice of intent to exercise option to extend to be given with 180 days prior notice.

Landlord Responsibilities:After completion of construction, none, except to assign Tenant all warranties and guarantees applicable to the newly constructed Premises.

Tenant Responsibilities: All utilities furnished to Premises, including installation, termination and relocation of such service. All taxes, assessments, license fees and costs, common area maintenance expenses. Keep Premises including sidewalks and loading areas clean and free from rubbish and debris. Perform routine extermination as appropriate for its use.Interior/exterior and free-standing signs - approved by Landlord in writing and authorized by any governmental authority having jurisdiction over property. Landlord to provide electrical junction boxes for all wall mounted signs, with Tenant responsible for all other signage related costs/expenses.Alterations/additions in excess of $10,000 to be approved by Landlord and Landlord’s lender prior to work being commenced.

Assignment and Subletting:With exception of any entity resulting from a merger or consolidation with Tenant or to a person or entity that acquires all assets of Tenant, Landlord’s approval shall be required. The net worth of assignee to be at least equal to or greater than that of assignor as of effective date of the Lease.

Financials:Upon request by Landlord, Tenant shall provide within 5 business days of request any and all monthly, yearly and/or periodic financial statements for any business operated on the premises, including but not limited to, income statements and/or balance sheets showing daily, weekly and/or monthly losses and profits. Landlord to treat any information provided as confidential.


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RENT SCHEDULE - INITIAL TERM

Y E A R M O N T H LY R E N T Y E A R LY R E N T C A P R AT E

Year 1 $17,428.00 $209,136.00 5.75%Year 2 $17,671.99 $212,063.90 5.83%Year 3 $17,919.40 $215,032.80 5.91%Year 4 $18,170.27 $218,043.26 5.99%Year 5 $18,424.66 $221,095.86 6.08%





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Detention Basin

SR 1

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HARVEST LANE

SITE PLAN


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CONSTRUCTION PHOTOS


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TENANT OVERVIEW

Zaxby’s is a franchised/corporate chain of fast food restaurants located primarily in the Southern United States with more than 900 locations. System-wide sales in 2017 were approximately $2.09 billion. The first Zaxby’s restaurant opened in Statesboro, Georgia in March 1990. The company’s first restaurant outside of Georgia was opened in September 1994 in Bowling Green, Kentucky. Zaxby’s now operates in 17 states as a casual dining restaurant, offering prepared-at-order chicken fingers, chicken wings, sandwiches, salads, and appetizers. Dining rooms at Zaxby’s restaurants are decorated with assorted whimsical objects and signs, which often vary in theme by location and region. With 20 openings that were planned or opened for 2018, there are many new locations scheduled to open soon across the South.

Source: www.zaxbys.com | www.qsrmagazine.com



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OPERATORAmong Matt and Tara Strickland’s portfolio of established restaurant investment properties are four existing Zaxby’s from Melbourne, Florida to Waycross, Georgia. This restaurant will be their second Zaxby’s St. Augustine location. Also in St. Augustine, they have a Mellow Mushroom restaurant (a popular hand tossed, stone baked, high quality, classic southern pizza restaurant). The franchisee has rights to expansion territories in Florida, thus allowing him to expand his store count in a region that already embraces the Zaxby’s brand.

SR 16



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DEMOGRAPHICS TRAFFIC COUNTS - 2017

Source: www.northfloridatpo.com

1 Mile 2 Miles 3 Miles

Population - 2018 (estimated) 1,057 3,030 7,273

Population - 2023 (projected) 1,288 3,645 8,619

Population - 2010 census 739 1,959 5,409

Avg Household Income 2018 $65,423 $66,763 $68,348

5 miles

3 miles

2 miles

1 mile

40,859 = SR 16 Traffic Volume at site (AADT) 76,500+ daily = I-95 Traffic Volume


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THE MARKET

www.citystaug.com | www.oldcity.com | www.visitstaugustine.com

St. Augustine, the county seat of St. John’s County, on the northeast coast of Florida, lays claim to being the oldest city in the US, as it was founded in 1565. Known for its Spanish colonial architecture as well as 43 miles of Atlantic Ocean beaches, the chief economic industry in the area is tourism, with approximately 350 hotels in St. Augustine’s immediate vicinity. Bordered by the scenic Atlantic Ocean and St. Johns River, St. Johns County embraces its historic heritage and uniquely diverse communities such as the city of St. Augustine — the na-tion’s oldest city; St. Augustine Beach; Ponte Vedra and Hastings — the Potato Capital of Florida, all of which have attracted visitors for centuries. St. Johns County offers businesses and residents alike a top-ranked Florida public school system, lowest overall tax structure in northeast Florida, healthiest county in Florida (at least 7 years in a row), a highly educated workforce, beautiful nat-ural amenities, a growing population, and rich historical attractions. Given the

Of the many accolades St. Augustine/St. John’s County have received over recent years, these are some of the highlights:

• One of 9 Cutest Small Towns in America

• Florida Beach Destinations to Check Out

• #5 among Top 10 seaside municipalities over 10K population

• Healthiest county in Florida (7 years in a row)

• Best Places in North Florida for aerospace companies

• Flagler College #2 in Best Regional Colleges in the South

• St. Augustine one of 25 Best Small Towns in America

• A “Most Eco-Friendly City”

• Strong School District rankings

mild year round climate and outdoor recreational opportunities, including golf courses and tennis resorts, fishing, diving, surfing, parasailing and other water sports, it’s easy to see the draw to the area.

The St. John’s County unemployment rate is consistently among the lowest in the state and in February 2019 was 2.9%. Top Employers are the St. Johns County School District, Flagler Hospital, St. Johns County, Northrop Gruman and PGA Tour, Inc. The retail district - which includes the 331,669 SF St. Au-gustine Outlets and the 328,000 SF St. Augustine Premium Outlets - draws customers from the fast growing markets of St. Augustine, greater St. Johns County and Jacksonville (about 35 miles away). Some sources indicate com-bined average daily traffic counts at the I-95/State Highway 16 interchange exceed 124,000.


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GREGORY M. DALTON Senior Vice President Lic. 00525726 +1 916 781 4816 [email protected]

PAM WILLETTS Client Services Specialist Lic. 00909593 +1 916 781 4831 [email protected]

MARK DRAZEK Senior Vice President x+1 407 839 31233 [email protected]

CBRE, INC 1512 Eureka RoadSuite 100Roseville, CA 95661

LOCAL LICENSEE

INVESTMENT CONTACT

View all our available properties at:

www.cbre.com/inv-sac-netlease


ST. AUGUSTINE, FLORIDA OFFER PRICE $3,637,148

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