850 MALABAR ROAD SE, PALM BAY, FLORIDA 32909

OFFERING MEMORANDUM Capital Markets | Net Lease Properties

REPRESENTATIVE PHOTO

MARK DRAZEKSenior Vice President Capital Markets | Net Lease Properties

CBRE, Inc. Licensed Real Estate Broker

© 2018 CBRE, Inc. All Rights Reserved.

RAY ROMANOFirst Vice President Capital Markets | Net Lease Properties

+1 407 404 5022ray.romano@cbre.com

EXCLUSIVELY MARKETED BY:

EASTERN FLORIDA STATE COLLEGE

CENTERPOINTE CHURCH

MALABAR ROAD SE (25,000 AADT)

I-95 (61,500 AADT)

EMER

SON

DR

IVE

SE (

29,5

00 A

ADT

)

American Legion Post 117

®

C

WAWA | PALM BAY, FL

MALABAR ROAD SE (25,000 AADT)

EMERSON DRIVE SE (29,500 AADT)

Cascade Avenue

CLICK FRAME TO SEE PROPERTY VIDEO

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WAWA | PALM BAY, FL

investment highlights• Exceptionally well located new Wawa in Brevard County

• Brand new 20 year ground lease

• Investment grade credit – Shadow rating: BBB

• Fixed rental rate increases every five years starting at year 11

• No landlord management obligations

• Hard corner signalized intersection, combined average daily traffic of 54,500 vehicles

• Just off of Interstate 95

• Large efficient parcel

• No debt to assume – Able to pay all cash

• Florida has no state income tax

INVESTMENT SUMMARY

investment summaryPRICE: $5,760,000

ANNUAL RENT: $265,000

CAP RATE: 4.6%

TENANT: Wawa Florida, LLC

GUARANTOR: Wawa, Inc.

RENTAL INCREASES: 5% every 5 years starting at year 11 and including options

INITIAL LEASE TERM: 20 years

OPTIONS: (6) 5-year options

RENT COMMENCEMENT: August 2018

LANDLORD OBLIGATIONS: None – Absolute NNN ground lease

EXISTING FINANCING: No debt to assume

BUILDING SIZE: ± 6,119 SF

LAND SIZE: 2.20± acres

PARKING SPACES: 67 spaces (10.95/1,000 SF)

YEAR BUILT: 2018

CBRE is pleased to present this 20-year absolute NNN Wawa ground lease located in Palm Bay, Florida. Located within Brevard County and Florida’s Space Coast, this store

is scheduled to open in August 2018 and consists of a 6,119+ SF building on 2.2 acres at the SW corner of Emerson Drive and Malabar Road. The lease is absolute NNN with no landlord management obligations and offers fixed rental increases every five years throughout the initial term and renewal options.

Palm Bay was just named the number 1 city in the United States for tech salaries in a new study published by business.org. The Palm Bay-Melbourne-Titusville metro area has seen tremendous job growth within recent years and is benefiting from rapid growth in the aerospace, aviation and high-tech manufacturing industries.

REPRESENTATIVE PHOTO

This location benefits from being within one mile of the interchange with I-95 (61,500 AADT) and being part of a retail corridor that includes Walmart, Home Depot, Publix, Lowes, Walgreens, CVS and a number of other national retailers. Eastern Florida State College and Palm Bay Hospital are also in close proximity to this store.

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WAWA | PALM BAY FL

PROPERTY DESCRIPTION

property descriptionLOCATION

850 Malabar Road SE Palm Bay, FL 32909

BUILDING AREA

The subject consists of one (1) retail building totaling approximately 6,119 SF of net rentable area.

2017 FDOT TRAFFIC COUNTS

Malabar Road SE 25,000 AADT

Emerson Drive SE 29,500 AADT

SITE

The subject is located at the signalized intersection of Emerson Drive and Malabar Road in Palm Bay, Florida.

LAND AREA

The Property consists of one (1) parcel totaling approximately 2.2 acres of land area.

PARKING

The Property provides 67 parking stalls which equates to 10.95/1,000 SF parking ratio.

ACTUAL PROPERTY

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WAWA | PALM BAY, FL

VIEW EAST

®

MALA

BAR R

OAD SE

(25,

000

AADT)

EMERSON DRIVE SE (29,500 AADT)

Cascade Avenue

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WAWA | PALM BAY FL

VIEW SOUTHEAST

MALABAR ROAD SE (25,000 AADT)

EMERSON DRIVE SE (29,500 AADT)

Cascade A

venue

CENTERPOINTE CHURCH

American Legion Post 117

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WAWA | PALM BAY, FL

VIEW SOUTH

MALABAR ROAD SE (25,000 AADT)

EMER

SON

DRI

VE

SE (

29,5

00 A

ADT

)

Cascade AvenueCENTERPOINTE

CHURCH

American Legion Post 117

6

WAWA | PALM BAY FL

MALABAR ROAD SE (25,000 AADT)

EMERSON DRIVE SE (29,500 AADT)

Cascade Avenue

VIEW EAST

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WAWA | PALM BAY, FL

SITE PLAN

N

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WAWA | PALM BAY FL

Palm Bay/Florida’s Space CoastCentrally located 45-minutes east of Orlando, Florida’s Space Coast is a place where sandy beaches meet world-famous surfing and oceanfront happy hours. A place where nature provides a landscape for visitors to enjoy idyllic year-round temperatures, and where the tranquility of the river and the warmth of the sun will enrich the senses. And it’s where cruise ships, rocket launches, and natural wonders delight year-round.

The Space Coast is one of only three areas in the country that currently conduct commercial orbital launches. Managed by the 45th Space Wing, Cape Canaveral Air Force Station has conducted more than 3,300 launches since their first launch in 1950. Active launch vehicles include United Launch Alliance’s Atlas and Delta families of rockets, Orbital Sciences’ Pegasus XL, and eventually SpaceX’s Falcon 9.

SpaceX facility at Kennedy Space Center. Blue Origin’s new 750,000 sq. ft. facility near Kennedy Space Center.

Hard-Wired For TechThe Space Coast boasts the largest share of science, technology, engineering and math-related jobs in Florida, according to a 2013 Brookings Institute report. The Milken Institute found the Space Coast is home to the most concentrated high-tech workforce in Florida.

In Good CompanyThe Space Coast boasts the largest share of science, technology, engineering and math-related jobs in Florida, according to a 2013 Brookings Institute report. The Milken Institute found the Space Coast is home to the most concentrated high-tech workforce in Florida.

Quintamodal TransportationWith our unique aerospace history, we have a special appreciation for transporting people and goods in the most efficient and cost-effective ways. Our central location on the Atlantic seaboard in east-central Florida allows us to offer the world’s only quintamodal hub, with space, air, sea, rail and road transportation.

AREA OVERVIEW

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WAWA | PALM BAY, FL

Major Projects & Recent NewsThe Economic Development Commission of Florida’s Space Coast provides a compila-tion of major business attraction and expansion projects. The list below shows 2016-2017 announced projects.

• Astro Pak Corporation Invests in Titusville, FL for Expansion

• ERC Announces New Location in Melbourne, FL

• Red Canyon Software, Inc., to Bring Jobs and More to Brevard

• Walmart’s New Cutting-Edge Facility Diversifies Brevard Economy

• Comprehensive Health Services, Inc. Selects Brevard County for Headquarters Expansion

• EDC Announces RUAG’s Selection of North Brevard

• Cross-Brands Manufacturing, LLC Selects Cocoa as its First Southeastern Production and Delivery Location

• Lockheed Martin Selects Titusville for New Operations

• Thales Selects Brevard County to Expand Operations

• OneWeb Sarellites Selects Florida’s Space Coast for Manufacturing Operations

• French Aerospace Supplier Selects Brevard County

Palm Bay No. 1 for Tech SalariesPost Date: 06/13/2018 11:21 AM

Palm Bay has been named No. 1 for tech salaries on a list of 100 US Cities according to a new study published by business.org, an online publication focused on small business issues. The study lists the average tech salary in the Palm Bay-Melbourne-Titusville metro area as $159,390 in 2017, that’s three times the average state salary of $50,560.

Economic development has become a major focus in Palm Bay, and throughout Brevard County, as demand has increased for highly-skilled workers to fill the high-wage jobs in the growing technology industry. Recognizing this trend, the City of Palm Bay established a dedicated Economic Development and External Affairs Division in 2015 to facilitate growth and advocate for the city’s growing pool of tech employers.

According to business.org, the cost of living in each metro was not factored into the research, but most of the top cities on the list are not cheap places to live. Cities like San Francisco (average tech salary of $113,078) and New York (average tech salary of $105,334) need to offer top pay to attract top talent, said business.org. Fortunately, Palm Bay is ranks among the top six most affordable cities in Florida according to livability.com.

To see the full business.org report click here. For more information about Palm Bay’s Economic Development efforts visit www.developpalmbay.org

AREA OVERVIEW

distance to

180Downtown

Jacksonville

miles146St. Augustine

miles 149Tampa

miles

74Orlando

miles

107West Palm

miles

170Miami

miles

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WAWA | PALM BAY FL

DEMOGRAPHIC BRIEF

1524 EMERSON DR SE 1 MILE 3 MILES 5 MILES

2017 Population - Current Year Estimate 7,816 56,550 133,371

2022 Population - Five Year Projection 8,076 59,043 140,772

2010 Population - Census 7,549 53,450 123,492

2000 Population - Census 5,862 43,338 93,241

2010-2017 Annual Population Growth Rate 0.48% 0.78% 1.07%

2017-2022 Annual Population Growth Rate 0.66% 0.87% 1.09%

2017 Households - Current Year Estimate 3,045 21,729 52,448

2022 Households - Five Year Projection 3,132 22,617 55,225

2010 Households - Census 2,965 20,623 48,795

2000 Households - Census 2,343 16,416 36,682

2010-2017 Annual Household Growth Rate 0.37% 0.72% 1.00%

2017-2022 Annual Household Growth Rate 0.57% 0.80% 1.04%

2017 Average Household Size 2.56 2.59 2.52

2017 Average Household Income $54,670 $57,568 $59,426

2022 Average Household Income $62,129 $65,285 $67,711

2017 Median Household Income $45,628 $45,554 $45,658

2022 Median Household Income $51,320 $50,781 $51,005

2017 Per Capita Income $21,198 $22,160 $23,666

2022 Per Capita Income $23,973 $25,022 $26,848

2017 Housing Units 3 ,433 24 ,598 59 ,575

2017 Vacant Housing Units 388 11.3% 2,869 11.7% 7,127 12.0%

2017 Occupied Housing Units 3,045 88.7% 21,729 88.3% 52,448 88.0%

2017 Owner Occupied Housing Units 2,396 69.8% 15,562 63.3% 36,069 60.5%

2017 Renter Occupied Housing Units 649 18.9% 6,167 25.1% 16,379 27.5%

2017 Population 25 and Over 5 ,709 40 ,006 94 ,673

HS and Associates Degrees 4,140 72.5% 27,624 69.0% 63,054 66.6%

Bachelor's Degree or Higher 838 14.7% 8,055 20.1% 21,936 23.2%

2017 Businesses 170 1,140 2,484

2017 Employees 2,166 13,005 28,879

©2018 CBRE. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are forexample only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the propertyfor your needs. Source: Esri Page 1 ProjectID:338460

POPULAT ION

HOUSEHOLDS

HOUSEHOLD INCOME

HOUS ING UN ITS

EDUCAT ION

PLACE OF WORK

DEMOGRAPHIC BRIEF

1524 EMERSON DR SE

NAME LATITUDE LONGITUDE

1524 EMERSON DR SE 27.9984448092639 -80.6489439153443

©2018 CBRE. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are forexample only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the propertyfor your needs. Source: Esri ProjectID:338460

AREA OVERVIEW

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WAWA | PALM BAY, FL

AREA OVERVIEW

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WAWA | PALM BAY FL

AREA OVERVIEW

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WAWA | PALM BAY, FL

Founded in 1803 by the Wood family and incorporated in 1865, Wawa, Inc. (the “Company” or “Wawa”) has roots in the manufacturing and textile businesses. The first Wawa Food Market opened on April 16, 1964. Today, the Company operates approximately 750 convenience stores, approximately 270 of which include a fuel offering, in Pennsylvania, New Jersey, Delaware, Maryland and Virginia. Wawa is a privately held company, with a majority of the Company stock still owned by the Wood family. Company associates who participate in the Employee Stock Ownership Plan have a nearly 30% ownership stake.

Wawa offers a large fresh foodservice selection, including freshly brewed coffee, a wide selection of delicatessen and dairy products, fresh produce, hot foods, built-to-order sandwiches and Wawa brands such as juices, teas, water and bakery products. The Company’s revenue principally consists of fuel and merchandise sales. The Company operates a dairy manufacturing facility, producing Wawa branded beverages and dairy products for distribution to, and sale in, its stores and to wholesale customers. The Company has a committed fuel storage terminal for the purpose of both storing fuel for distribution to, and sale in, its stores and for holding and selling fuel in wholesale markets.

Wawa has differentiated itself from its competitors by focusing on several key strategic areas:• Delivering fast and friendly customer service in a safe and clean shopping

environment;• Promoting and developing Wawa-branded food, beverage and fresh food items;• Maintaining world-class facilities by systematically opening new stores, closing

marginal stores and remodeling older stores; and• Maximizing operating efficiency by making significant investments in operations

programs and technology.

Wawa exceeds industry norms in virtually every measurable category (Source: NACS State of the Industry Report of 2009 Data – most recent industry data available)• Wawa merchandise sales per store averaged $4.9 million for the year ended 2009

versus an industry average of $1.5 million for 2009• Gasoline sales totaled 1.4 billion gallons for the year 2009, an average of 101,000

gallons per fuel store week or just under four times the industry average of approximately 28,000 gallons per fuel store week in 2009

• Incorporated in 1865• #34 in Forbes Ranking of America’s Largest Private

Companies• Shadow Rated: BBB• 750 locations in the United States – All Company Owned

and Operated• Exceeds industry norms in virtually every measurable

category

REPRESENTATIVE PHOTO

WAWA, INC.www.wawa.com

TENANT DESCRIPTION

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WAWA | PALM BAY FL

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 Memorandumhas 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.

© 2018 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. Any projections, opinions, or estimates are subject to uncertainty. The information may not represent the current or future performance of the property. You and your advisors 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. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited.

MARK DRAZEKSenior Vice President Capital Markets | Net Lease Properties

+1 407 404 5022ray.romano@cbre.com

CBRE, Inc. | Licensed Real Estate Broker

RAY ROMANOFirst Vice President Capital Markets | Net Lease Properties

EXCLUSIVELY MARKETED BY

REPRESENTATIVE PHOTO

© 2018 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.