Offering Memorandum

Rare Outside Storage | 0.09 FAR | National Tenant | 7.00% Cap

Master Halco1843 Commerce Blvd, Midway (Tallahassee MSA), FL

Subject Property

Confidentiality and Restricted Use AgreementThis Confidential Offering Memorandum (“COM”) is provided by Stan Johnson Company (“SJC”), solely for

your consideration of the opportunity to acquire the commercial property described herein (the “Property”).

This COM may be used only as stated herein and shall not be used for any other purpose, or in any other

manner, without prior written authorization and consent of SJC.

This COM does not constitute or pertain to an offer of a security or an offer of any investment contract. This

COM contains descriptive materials, financial information and other data compiled by SJC for the convenience

of parties who may be interested in the Property. Such information is not all inclusive and is not represented

to include all information that may be material to an evaluation of the acquisition opportunity presented.

SJC has not independently verified any of the information contained herein and makes no representations

or warranties of any kind concerning the accuracy or completeness thereof. All summaries and discussions

of documentation and/or financial information contained herein are qualified in their entirety by reference to

the actual documents and/or financial statements, which upon request may be made available. An interested

party must conduct its own independent investigation and verification of any information the party deems

material to consideration of the opportunity, or otherwise appropriate, without reliance upon SJC.

The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the

right to negotiate with any number of interested parties at any time. The Property is offered and sold by its

owner(s) as is, where is, and with all faults, without representation or warranty of any kind except for any

customary warranties of title.

BY ACCEPTING THIS COM, YOU AGREE THAT: (1) all information contained herein, and all other information

you have received or may hereafter receive from SJC relating to the Property, whether oral, written or in any

other form (collectively, the “Information”), is strictly confidential; (2) you will not copy or reproduce, and

claim as your own without attribution to SJC, all or any part of this COM or the Information; (3) upon request

by SJC at any time, you will return and/or certify your complete destruction of all copies of this COM and the

Information; (4) for yourself and all your affiliates, officers, employees, representatives, agents and principals,

you hereby release and agree to indemnify and hold harmless SJC all of its affiliates, officers, employees,

representatives, agents and principals, from and with respect to any and all claims and liabilities arising from

or related to the receipt or use of this COM and/or any other Information concerning the Property; (5) you

will not provide this COM or any of the Information to any other party unless you first obtain such party’s

acceptance and approval of all terms, conditions, limitations and agreements set forth herein, as being

applicable to such party as well as to you; and (6) monetary damages alone will not be an adequate remedy

for a violation of these terms and that SJC shall be entitled to equitable relief, including, but not limited to,

injunctive relief and specific performance, in connection with such a violation and shall not be required to post

a bond when obtaining such relief.

Offered Exclusively by

Stan Johnson Company180 Madison Ave, Suite 1500 New York, NY 10016 P: +1 646.778.5560 stanjohnsonco.com

James Ullrich Associate Directorjullrich@stanjohnsonco.com FL License # BK3073947

In collaboration with:

J.R. Long Broker jr@structureiq.net

Structure Commercial Real Estate249 Pinewood DriveTallahassee, FL 32303 P: +1 850.656.6555 stanjohnsonco.com

Section One

Executive Summary

Investment HighlightsStrong National Credit Tenant

• Founded in 1961

• 60+ Locations

• $600M +/- Revenue (Hoovers)

Lease Structure

• NN, Minimal landlord responsibilities

• 2.75 Years remaining

• 2% Bumps, per annum.

Real Estate

• Tallahassee, FL MSA

� State Capital

� University Town: FSU, FAMU, and TCC

• Rare outside storage, fenced and milled

• 0.09 FAR

• 1 Mile from Interstate 10 interchange

• Potential for below market rents (lease signed in 2010)

Investment SummaryThe property offers rare outside storage and a 0.09 FAR. Master Halco is

operating under a ten-year lease with 2.75+/- years remaining. Founded in

1961, Master Halco is North America's leading manufacturer and wholesale

distributor of fencing, including agricultural, vinyl, wood, ornamental, and

chain-link fences.

Offering Price: $1,265,000

Cap Rate: 7.00%

Subject Property

Property Summary

Address: 1843 Commerce Blvd, Midway, FL

Building Size: 11,250 SF

Land Area: 3 AC / 0.09 FAR

NOI: $88,520.59

Master Halco • Midway, FL 4

Section Two

Tenant Credit Overview

Tenant Overview

Representative Photo

Master Halco is headquartered in Dallas, Texas. The company, a subsidiary of ITOCHU International (BBB+, S&P), lays claim to being North America's leading maker and wholesale distributor of fencing for residential, commercial, and industrial applications. A sampling of its offerings include vinyl, wood, iron and aluminum ornamental, and chain link fences, as well as perimeter security gates and access control devices. The company sells products under such brand names as Anchor Fence, Classic Premier, Color Link, Hound Surround, Legend, Master Bond, Master Color, and PostMaster, among others.

Master Halco operates manufacturing plants, distribution centers, and branch sales offices in more than 60 cities around the US and Canada. Specifically it has manufacturing facilities in Texas, Illinois, California, and Pennsylvania.

It markets its products to professional fencing contractors, building materials retailers that sell to homeowners, and architects in North America. Its line of electronic gate entry and access control equipment is aimed at security contractors serving government facilities, airports, and embassies.

Parent Overview ITOCHU International Inc. is the North American flagship company of the ITOCHU Group. ITOCHU provides trading services for more than 20,000 items and manages a portfolio of more than 20 subsidiaries and affiliates.

Established in New York in 1952 and headquartered in midtown Manhattan, ITOCHU has various offices from coast to coast in the United States, as well as operations in Canada and Mexico, and is staffed by approximately 160 employees. Its subsidiaries employ thousands more.

ITOCHU operates in a wide variety of businesses, with particular strength in the machinery, energy, aerospace and electronics, food, forest products, chemicals and textiles sectors. ITOCHU and its subsidiaries have assets of nearly $1.7 billion and annual revenues of over $3.6 billion in the last year.

ITOCHU’s parent company, ITOCHU Corporation, is headquartered in Tokyo, and was established more than 150 years ago as a trading company, importing and exporting items around the world.

Today, the ITOCHU Group still offers trading services but it also owns or has significant investments in 400 companies. In addition to several offices in Japan, its parent company has ten regional subsidiaries that partner with businesses everywhere. With 153 offices and 326 subsidiaries and affiliated companies, and over 105,800 employees in 74 countries as of March 2016, ITOCHU Corporation boasts one of the most extensive business networks anywhere. Ranked among the Fortune Global 500, ITOCHU Corporation had over $45 billion in annual revenue last year

Tenant Quick Facts

Founded 1961

Number of Locations 60+

Revenue (Hoovers) $600M

Teanant BusinessNorth American leader in fencing manufacturing and wholesale distribution

Parent Company ITOCHU International (BBB+)

Master Halco • Midway, FL 6

Section Three

Lease Structure Overview

Lease Abstract

Basic Information

Tenant Master Halco, Inc

Property Address 1843 Commerce Blvd., Midway, FL 32343

Rentable SF 11,250 SF

Land AC / SF 3 AC - 130,680 SF (0.09 FAR)

Term Commencement June 1st, 2010

Term Expiration June 30th, 2020

Term Remaining ~2.75 years

Rent Per Annum $88,521

Per AC per month $2,459

Per Building SF per year $7.86

Rental Increases 2% annually

Renewal Options (2) 5-year options

Notice 6 months prior

Option Rent Rent adjusts to Fair Market Value, with 2% annual escalations

Expenses (lease type) NN

Landlord ResponsibilityRoof, Structure, exterior walls, any flood control and drainage issues, stormwater pond maintenance, and spillways.

Tenant Responsibility

Real Estate Taxes, insurance, utilities, common area maintenance, building exterior, outside grounds, milled yard area, parking lot, and maintain building systems (HVAC, elecrical, plumbing, etc.)

Notes to Expenses Please review lease for building system replacement responsibility.

N

Master Halco • Midway, FL 8

Section Four

Real Estate Overview

Property Overview

Basic Information

Address 1843 Commerce Blvd., Midway, FL 32343

Property Type Industrial

UseIndustrial / Distribution / Warehouse / Outdoor Storage

Occupancy 100%

Year Built 2010

Building SF 11,250 SF

Office 2,000 SF (17%)

Warehouse 9,250 SF (83%)

Lot Size 130,680 SF (3 AC)

FAR .09 FAR

Construction Type Freespan (Butler Building System)

Structure Steel frame

Exterior Walls Corrugated metal

Roof Standing seam metal

Clear Height 21 eve and 24 at centerline arch

Sprinklers None

Lighting T-5 office & High Bay in warehouse

Loading Five overhead doors at grade level

Yard 130,680 SF of fenced, milled yard

Parking 20 Spaces (10:1,000 SF office and 1.8:1,000 total)

Master Halco • Midway, FL 10

Midway is a city in Gadsden County, Florida. The

population was 3,004 at the 2010 census. It is

conveniently located near the intersection of two

major highways—Interstate 10 and US 90. Midway

has all the comforts of rural Florida, yet it is only

fifteen miles away from major shopping malls, two

universities and a community college.

Midway is also an ideal place to locate a business.

They have two large commercial areas of over

1,000 acres either contained in the Gadsden Station

DRI or located near the Intersection of I-10 and

US 90. Properties in the city at those sites will

enjoy Midway's newest zoning classification—the

Interchange Commercial Zoning—which will allow

citizens to get their building constructed and in

operation in a very short time.

Midway is located about ten miles from Tallahassee,

the capital of Florida. It is home to Florida State

University, ranked the nation's thirty-eighth best

public university by U.S. News & World Report. It is

also home to the Florida A&M University, one of the

country's largest historically black universities by

total enrollment. Tallahassee Community College is

a large community college which serves mainly as

a feeder school to both Florida State and Florida

A&M. Tallahassee qualifies as a significant college

town with a student population exceeding 70,000.

Tallahassee is currently ranked as the 18th best

college town in the nation by Best College Reviews.

In 2015, Tallahassee was awarded the All-American

City Award by the National Civic League for the

second time.

Tallahassee, FL

Location Overview

Master Halco • Midway, FL 11

3 mile

5 miles

10 miles

Demographics 1845 Commerce Blvd | Midway, FL 0 - 3 mi. 0 - 5 mi. 0 - 10 mi.

Population

2017 Population 5,139 35,202 171,596

2022 Population 5,343 36,569 176,830

2010-2017 Annual Rate 1.03% 0.78% 0.54%

2017-2022 Annual Rate 0.78% 0.76% 0.60%

Households

2017 Total Households 1,962 13,925 68,008

2022 Total Households 2,027 14,400 69,928

2010-2017 Annual Rate 0.84% 0.60% 0.40%

2017-2022 Annual Rate 0.65% 0.67% 0.56%

Income

2017 Average Household Income $65,926 $58,062 $58,526

2017 Per Capita Income $25,502 $23,059 $23,910

Avg. HH Income within 5 miles

Population within 10 miles

$58,062

171,596+ N

Master Halco • Midway, FL 12

N

The Property is located approximately 1.2 miles from Interstate 10.

Master Halco • Midway, FL 13

N

INTERSTATE 10 (+/- 30,000 VPD)

HIGHWAY 90 (+/- 20,412 VPD)

HALE CONTRACTING

INC

MIDWAY TIRE

XANADOO LLC

BODY BUILDING

EXCLUSIVE ENTERPRISES

SHIVER DEISEL INJECTIONS

LAWSONS BODY SHOP

JOHNNY S AUTO

ACE SALVAGE

JUNCTION CITY MINING

MIDWAY RAILROAD

Master Halco • Midway, FL 14

Subject Property Photos

going beyond

The information contained herein was obtained from sources believed reliable, however, Stan Johnson Company makes no guaranties, warranties or representations as to the completeness thereof. The presentation of this property for sale, rent or exchange is submitted subject to errors, omissions, change of price or conditions, or withdrawal without notices.

Stan Johnson Company180 Madison Ave, Suite 1500 New York, NY 10016 P: +1 646.778.5560 stanjohnsonco.com

James Ullrich Associate Directorjullrich@stanjohnsonco.com FL License # BK3073947

In collaboration with:

J.R. Long Broker jr@structureiq.net

Structure Commercial Real Estate249 Pinewood DriveTallahassee, FL 32303 P: +1 850.656.6555 stanjohnsonco.com