| 1OFFERING MEMORANDUM16320 U.S. HWY 331 S.

FREEPORT, FL

T E N A N T O V E R V I E W0 8

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LISTED BY

BROKER OF RECORDKYLE MATTHEWS

LIC # CQ1052263 (FL)

CALVIN SHORTSVP & SENIOR DIRECTOR

DIRECT (949) 432-4506MOBILE (310) 567-3525calvin.short@matthews.com

LIC # 01927216 (CA)

JOSH BISHOP VP & DIRECTOR | LIC # 688810 (TX)

CHAD KURZ SVP & NATIONAL DIRECTOR | LIC # 01911198 (CA)

ARON CLINE SVP & SENIOR DIRECTOR | LIC # 01904371 (CA)

E X E C U T I V E O V E R V I E W0 3

F I N A N C I A L O V E R V I E W0 5

A R E A O V E R V I E W1 1

TABLE OF CONTENTS

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SECTION 1

EXECUTIVEOVERVIEW

» PROPERTY ADDRESS

» OFFERING PRICE

» CAP RATE

» LOT SIZE

» GLA

» YEAR BUILT

16320 U.S. Hwy 331 SouthFreeport, FL 32439

6.50%

±7,500 SF

$1,932,700

±1.18 AC

2018

INVESTMENT SUMMARY

» New 15-year net lease with minimal landlord responsibilities

» Brand new 2018 construction and Ace Hardware’s newest prototype building

» New 15-year roof warranty in place – see broker for additional details

» Ideally positioned adjacent to a newly developed Publix which is the dominant grocer in Florida

» Great frontage and visibility to over 25,000 cars per day

» Long-term, high-quality building in an income tax free state – ideal for passive investor

» Lack of competition in the immediate area as Ace Hardware will be the only dedicated hardware store serving Freeport

» Ace Hardware is the world’s largest hardware retail cooperative, with over 5,000 locations and more than 86,000 employees

INVESTMENT HIGHLIGHTS

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SECTION 2

FINANCIALOVERVIEW

ANNUALIZED OPERATING DATAMonthly Rent Annual Rent Rent/SF Cap Rate

Year 1-15 $10,468.75 $125,625.00 $16.75 6.50%

Option 1 $11,515.63 $138,187.56 $18.43 7.15%

Option 2 $12,667.19 $152,006.28 $20.27 7.86%

Option 3 $13,933.91 $167,206.92 $22.29 8.65%

TENANT SUMMARY

Tenant Trade Name Ace Hardware

Type of Ownership Fee Simple

Lease Guarantor Franchise

Lease Type NNN

Roof and Structure Tenant

Original Lease Term 15 years

Rent Commencement Date Estimated August 15, 2018

Lease Expiration Date 15 years from Commencement

Term Remaining on Lease 15 years

Increase In Option Periods

Options Three, 5-Year options

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CITY, STATE - STREET:

DESIGNERCOMPANY:

NAME:

PHONE #:

ACREAGE:

PARKING:

DEVELOPER

NAME:

PHONE #:

COMPANY:

DATEBLDG SF:

PROTOTYPE:

PRELIMINARY SITE PLAN

NORTH

NORTH

BUILDING PLAN CENTER SITE PLAN

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LOCAL MAP

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REGIONAL MAPLOCAL MAP

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SECTION 3

TENANTOVERVIEW

Ace Hardware Corporation is an American hardware retailers’ cooperative based in Oak Brook, Illinois, United States. It is the world’s largest hardware retail cooperative, and the largest non-grocery American retail cooperative. Ace stores offer a wide variety of paint, lawn and garden, tools, business supplies, local niche services and virtually anything you’ll ever need to fix, repair and maintain your home or business. And of course, Ace is most certainly the place with the helpful hardware folks!

Founded in 1924 as “Ace Stores”, the company changed its name to “Ace Hardware Corporation” in 1931. After the retirement of longtime president and founder Richard Hesse in 1973, Ace was sold to its retailers, becoming a retailer-owned cooperative. It first reached $1 billion in wholesale sales in 1985 and $5 billion in 2015. As of 2017, it has over 5,000 locations in 60 countries. Ace operates 17 distribution centers in the United States, and additional distribution facilities in China, Panama, and United Arab Emirates.

» COMPANY NAMEA C E H A R D WA R E

» INDUSTRYR E TA I L

» NO. OF LOCATIONS±5,000

» NO. OF EMPLOYEES±86,00

» HEADQUARTEREDC H I C A G O, I L L I N O I S

» WEBSITEW W W.A C E H A R D WA R E .C O M

ACE HARDWARE

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LEASE ABSTRACT

Tenant: ACE Hardwared/b/a Consolidated Ace Hardware & Supply Co., Inc.

Corporate Address: 2200 Kensington Ct.Oak Brook, IL 60523

Building Size: 7,500Original Date of Lease: 8/21/2017 Rent Commencement: Estimated 8/15/2018Lease Expiration: 15 Years from Rent CommencementLease Term: 15 YearsCurrent Rent: Year 1-15: $125,625.00

Renewal Options:

Three (3), Five (5) year renewal periods

1). $138,187.562). $152,006.28 3). $167,206.92

Required Advance Notice of Exercise of Renewal Options: Four (4) Months

Sales Tax: In addition to monthly rent, Tenant shall reimburse Landlord monthly for the State of Florida sales tax on rent.

Repairs and Maintenance: Tenant shall keep and maintain in good order, condition and repair of the leased premise. Both Structural and Non-structural repairs shall be promptly fixed by tenant.

Real Estate Taxes: Tenant pays all taxes

Insurance:Tenant shall carry commercial general liability insurance and property damage insurance. Tenant also agrees to carry insurance which covers Tenant

and Landlord as named insureds, against fire and other risks, “Special Form,” for 100% of replacement costs.Landlord shall maintain commercial general public liability insurance.

Utilities: Tenant is solely responsible for and promptly pay all service charges for the utilities at the leased premises

Tenant Assignment and Subletting:

Tenant shall have the right to assign or sublet the Leased Premises without the Landlord’s written consent as long as assignee meets the Required Tangible Net Worth Threshold as specified in lease.

Right of First Refusal:

If during the term of the lease, Landlord receives an offer to purchase the Demised Premises from a third party that Landlord wishes to accept, landlord shall first offer Tenant the right to purchase the premises by sending to Tenant a written notice of the specific terms of the offer to sell or

purchase, including the price (“Offering Amount”), payment terms, conditions of title, costs of escrow and other relevant terms offering to sell the Demised Premises to any such party. Tenant shall have seven (7) business days after receipt of such notice to exercise its right to purchase by

providing written notice to Landlord. If Tenant exercise right to purchase such purchase and sale shall be on the same conditions as the offer to sell, and closing shall occur within ninety (90) days of Tenant’s notification of its election to exercise the right to purchase. If Tenant does not elect to

accept such offer or fails to provide notice within said seven (7) business day period, then landlord may offer to sell the Demised Premises to a third party on the terms and conditions provided in Landlord’s notice to Tenants for a period of one hundred eighty (180) days after the last day of the

aforesaid seven (7) business day period (the “Third Party Sale Period”). If no firm agreement in writing on said terms is executed by Landlord and a third party during the Third Party Sale Period, and if Landlord determines again that Landlord desires to offer the premises for sale, landlord must then

again comply with the terms hereof and Tenant shall again have the right of first offer.

US HIGHWAY 331±11,000 VPD

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SECTION 4

AREAOVERVIEW

Freeport is a city in Walton County, Florida and began about 1830 when settlers were attracted to the natural harbor of LaGrange Bayou located near the eastern end of Choctawhatchee Bay and the mouth of the Choctawhatchee River. In Freeport Florida, a good number of residents work on Eglin Air Force Base, as military personnel, contractors or civil service, but the lions share work south of the Bay in South Walton County.Freeport Florida is literally the crossroads between North and South Walton County. It is advantageously situated and within driving proximity to Tallahassee, Pensacola, Montgomery, Ft. Walton Beach, and Panama City. It is within an hour of the Okaloosa County Regional Airport, the Bay County Regional Airport the Destin Municipal Airport and the DeFuniak Springs Municipal Airport. It is a half-hour’s drive from the South Walton Beaches and golf courses.

FREEPORT, FLORIDA

FUTURE JOB GROWTH OVER THE NEXT TEN YEARS IS

PREDICTED TO BE 38.3%

DEMOGRAPHICS

Population 5 - Mile 7 - Mile 10 - Mile

2023 Projection 3,981 7,683 8,668

2018 Estimate 3,454 6,655 7,512

2010 Census 2,793 5,600 6,424

Growth 2018-2023 15.27% 15.44% 15.39%

Income 5 - Mile 7 - Mile 10 - Mile

2018 Est. AverageHousehold Income $75,695 $72,295 $70,431

Households 5 - Mile 7 - Mile 10 - Mile

2023 Projection 1,567 3,034 3,408

2018 Estimate 1,498 2,897 3,256

2010 Census 1,137 2,296 2,626

Growth 2018-2023 4.58% 4.74% 4.68%

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Hammock Bay is a premier master-planned residential community located along Highway 20, just 15 minutes north of sugary white sand beaches of the Florida Panhandle and Scenic Highway 30A. Situated on 3,000 acres in Freeport, here you will discover a peaceful, relaxing lifestyle, while still close to everything in Northwest Florida.Planned by the award-winning developers of Destiny by the Sea, Hammock Bay is a unique, sought-after and environmentally responsible community that offers a one of a kind lifestyle for residents of all ages. Particular care and thoughtful consideration have been demonstrated throughout every step of development to ensure no detail is overlooked.Residents at Hammock Bay will enjoy a host of amenities, including onsite recreational activities, year-round social events as well a vibrant and active Town Center being designed for the near future. With something for everyone, Hammock Bay strives to deliver a sense of community reminiscent of yesteryear.

HAMMOCK BAY » 6,000 sq. ft. Clubhouse with meeting

rooms and professional caterer’s kitchen » Workout and fitness facilities next door

to the 4,000 sq. ft. fitness center » Competition lap pool » Resort-style pool

» Tennis court » Putting green » Movie theatre » Massive playground » Basketball court

From historic neighborhoods and secluded rural living to a view of the beach and the golf course, Walton County has it all. Historic homes in small cities provide access to all necessities and a casual pace of life. Planned communities have proliferated, many with views of the Gulf or Choctawhatchee Bay and often featuring elaborate recreational facilities, bike paths, and nature trails. Large acreage lots in the County’s rural areas are tailor-made for residents with horses. The unique communities along beachside Scenic Highway 30-A are like none other and are often cited as milestones of architecture and conservation.The sugary white sands and turquoise waters number Walton County’s coastline among the world’s most beautiful beaches. The Gulf, the Bay, and numerous lakes and waterways provide opportunities for swimming, snorkeling, fishing, kayaking, canoeing, and boating. The coastal dune lakes along Highway 30-A are matched only by similar water bodies in Australia, New Zealand, Africa and Oregon, making them a rare phenomenon, worthy of discovery and exploration.

WALTON COUNTY

Walton County continues to lure more than visitors, as recently released census figures show it to be the sixth fastest growing county in the entire United States. The county’s population leaped from 65,440 to 68,376 between 2016 and 2017, according to figures released March 22 by the U.S. Census Bureau. That 4.5 percent jump of 2,936 new citizens puts Walton behind only a Virginia county, a county in Utah and three counties in Texas.One reason Walton County can expect more growth is an expected expansion of the military’s hypersonic weapon systems testing program. County officials in both Walton and neighboring Okaloosa County have been warned to anticipate an influx of both military officials and contractors as the Gulf of Mexico area set aside for weapons testing – by far the nation’s largest -- is greater utilized for this growing mission.

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» Tennis court » Putting green » Movie theatre » Massive playground » Basketball court

CONFIDENTIALITY AGREEMENT & DISCLAIMERThis Offering Memorandum contains select information pertaining to the business and affairs of ACE Hardware located at 16320 U.S. Hwy 331 South, Freeport, FL (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1 . The Offering Memorandum and its contents are confidential;2. You will hold it and treat it in the strictest of confidence; and3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or

its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

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LISTED BY

BROKER OF RECORDKYLE MATTHEWS

LIC # CQ1052263 (FL)

CALVIN SHORTSVP & SENIOR DIRECTOR

DIRECT (949) 432-4506MOBILE (310) 567-3525calvin.short@matthews.com

LIC # 01927216 (CA)

JOSH BISHOP VP & DIRECTOR | LIC # 688810 (TX)

CHAD KURZ SVP & NATIONAL DIRECTOR | LIC # 01911198 (CA)

ARON CLINE SVP & SENIOR DIRECTOR | LIC # 01904371 (CA)