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OFFERING MEMORANDUM S TARB U C K S

Representative Photo

CREDIT RATING

A2 A

Moody's S&P

S TA R B U C K S (Freestanding)

10330 Curry Ford Road Orlando, FL 32825

l Brand New Ten Year Lease l S&P Rating "A" (Stable Outlook) l Outparcel to Publix l Home to University of Central Florida (64,318 Enrolled Students)

Investment Highlights

Marcus & Millichap is pleased to offer for purchase a 2,200+/- square foot freestanding, fee simple Starbucks investment located at 10330 Curry Ford Road, east of downtown Orlando, FL. The subject property is strategically positioned on a 0.73 +/- outparcel to a Publix anchored Shopping Center. The site benefits from multiple points of ingress and egress as well as superior visibility along Curry Ford Road. Starbucks is currently under construction and is estimated to be delivered in October 2017.

Starbucks is located within a dense residential corridor supported by several nearby national retailers. The estimated population within a 3-mile radius of the subject property is 68,769 and 217,638 within a 5-mile radius of the subject property. Within 1-Mile of Starbucks, the average household income is $85,379.

In addition to several nearby traffic generators, there are 2,497 households within 1-mile which represents a 190% growth since 2000. The population is estimated to increase another 21.92% over the next five years. Some of the surrounding retailers include Publix, Target, The Home Depot, Lowe's Home Improvement, Kohl's, Dick's Sporting Goods, as well as many others. Starbucks is ideally positioned approximately 7.6 miles south of The University of Central Florida. UCF's student enrollment is comprised of over 64,318 students spread over 1,893 acres throughout the city of Orlando.

This investment is accompanied by a corporately guaranteed lease by Starbucks Corporation. The primary term of the lease is for a period of 10 years with four (4),

five-year renewal options. The base term contains a 10% rent escalation following year five of the lease and contains 10% rent escalations in each option period. Starbucks is publically traded on the NASDAQ under the ticker symbol `SBUX' and was just upgraded to an investment grade bond rating of `A' by Standard and Poor's. In 2016, Starbucks reported annual revenue of $21.315 billion.

This investment opportunity is offered at a purchase price of $2,720,000 which reflects a 5.00% cap rate. Please refer to the Pricing and Financial Analysis section for a full schedule of rents and unlevered return growth chart.

INVESTMENT HIGHLIGHTS

Brand New Freestanding Starbucks with Drive-Thru

Brand New Construction Projected Delivery October 2017

10 Year Corporately Guaranteed Lease

Ten Percent Rent Escalations in Year Six and Option Periods

Investment Grade Credit S&P `A' Rating

Curry Ford Hwy | ADTC of 25,500 +/-

Outparcel to Publix anchored shopping center

Home to University of Central Florida 64,318 Students Enrolled

1 EXECUTIVE SUMMARY

Investment Highlights

PROPERTY DETAILS Subject Name

Subject Address

Subject City, State, Zip Price Rentable Square Feet Price/SF CAP Rate Year Built Lot Size Type of Ownership

ANNUALIZED OPERATING DATA Rent Increases Lease Years 1-5 Lease Years 6-10 Option 1 (Years 11-15) Option 2 (Years 16-20) Option 3 (Years 21-25) Option 4 (Years 26-30) Net Operating Income (2017)

Starbucks

10330 Curry Ford Road Orlando, FL 32825 $2,720,000.00 2,200 $1,236.36 5.00% 2017 0.72 Acres Fee Simple

Annual $136,000.00 $149,600.00 $164,560.00 $181,016.00 $199,117.60 $219,029.36 $136,000.00

Monthly $11,333.33 $12,466.67 $13,713.33 $15,084.67 $16,593.13 $18,252.45

Unlevered Return

5.00% 1-5

Return Growth Chart (Unlevered)

5.50%

6.05%

6.66%

7.32%

8.05%

6-10

Option 1 (Year 11-15) Option 2 (Year 16-20) Option 3 (Year 21-25) Option 4 (Year 26-30)

Lease Year

2 EXECUTIVE SUMMARY

Investment Highlights COMPETITIVE PROPERTY SET

6.1 Tenant's Obligations. Subject to the provisions Section 6.2 and 6.3 and Articles 9 and 15, Tenant, at Tenant's expense, shall keep the non-structural portions of the Building, including the Premises in good order and repair, including the day to day maintenance of all plumbing, HVAC, electrical and lighting facilities and equipment within the Premises and exclusively serving the Premises, and the store front, doors, and plate glass of the Building and Premises. Tenant shall also be responsible for the day-to-day maintenance and repair (but not replacement) of all parking areas, driveways, sidewalks, landscaping, and drainage systems, and the outdoor seating area on the Property and all utility systems (including mechanical, electrical, and HVAC systems) and plumbing systems.

6.2 Landlord's Obligations. Landlord shall, at its sole cost and expenses, maintain, repair, and make replacements to the Premises, the Building, and the Property (including the Common Areas, if any) that are necessary to maintain the Building and the Property in a condition comparable to other first-class buildings in the Orlando, Florida metropolitan area. Such repairs, replacements, and maintenance shall include, without limitation: (a) the upkeep of the roof, roof membrane, and roof systems (gutters, downspouts, and the like), foundation, exterior walls, interior structural walls, and all structural components of the Premises, the Building, and the Property; and (b) the capital maintenance, repair and replacement of all parking areas (including resealing, repaving and repainting parking areas), lighting poles, driveways, sidewalks, landscaping and drainage systems on the Property, an all utility systems (including mechanical, electrical, and HVAC systems) and plumbing systems which serve the Building and/or the Property as a whole and are located outside the Building.

7.1 Tenant's Insurance. Tenant shall obtain and keep in full force and effect the following insurance which may be provided under blanket insurance policies covering other properties as well as the Premises and shall be maintained with an insurance company with an A.M. Best Company ("Best's") rating of at least A- and a Best's financial performance rating of at least VII.

7.2. Landlord Insurance. As of the Effective Date through the expiration or earlier termination of the Term of this Lease, Landlord shall obtain and keep in full force and effect, the following insurance ("Landlord's Insurance") from and insurance company with a Best's rating of at least A- and a Best's financial performance rating

of at least VII. For each Lease Year (or portion thereof) during the Term, Tenant shall pay Landlord the actual premium costs for Landlord's Insurance within thirty (30) days after Tenant's receipt of Landlord's invoice and the applicable premium bills thereof.

10.3. Personal Property Tax. Tenant shall pay, prior to delinquency, all personal property taxes assessed against Tenant directly and applicable to its personal property located in the Premises.

10.4. Rent Tax. Tenant shall pay all taxes assessed against this Lease of the Base Rent payable hereunder (including, without limitation, any sales tax, rent tax, or excise tax levied by any federal or state government or any political subdivision thereof).

12. Tenants Prop Rata Share of Common Area Operating Expenses, Insurance and Taxes. Because the Property is "self-contained" and Tenant is maintaining the Property at its own expense in accordance with Section 6.1, Tenant shall not be obligated to pay any common area expense, except with respect to the Annual CAM Fee described below. Tenant shall pay Landlord on the Rent Commencement Date and the first day of each Lease Year thereafter throughout the Term, the sum of Five Hundred Dollars ($500.00) the "Annual CAM Fee". After the first five (5) Leases Years, the Annual CAM Fee shall increase by ten percent (10%) at the beginning of each five (5) Lease Year period. For example, the Annual CAM Fee for Lease Years 6-10 shall be $550 and for Lease Years 11-15 shall be $605, etc.

13. Assignment and Subletting. Tenant may sublet all or any portion of the Premises or assign this Lease without Landlord's consent. After any assignment of this Lease or sublease by Tenant, Tenant shall remain secondarily liable only for performance of monetary covenants under this Lease (including any non-monetary covenants that have been reduced to a monetary amount by Landlord).

26. Continuing Right of First Offer. Tenant shall have the option, but not the obligation, to exercise a right of first offer to purchase the Property from Landlord (the "Right of First Offer"). Tenant shall have the right, for a period of thirty (30) days after its receipt of such written notice from Landlord, to deliver to Landlord a written acceptance of the Landlord's offering price.

3 COMPETITIVE PROPERTY SET

PROPERT Y PROPERTY OVERVIEW

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