Actual Site

SINGLETENANT

___________________

JACKSONVILLE,

FLORIDA

INVESTMENT OPPORTUNITY

SIGNALIZED HARD CORNER INTERSECTION

This Offering Memorandum has been prepared by SRS National Net Lease Group (SRS) and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive submarket conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment.

Actual SiteBroker of Record: John Artope - FL License No. BK31772617

EXCLUSIVELY MARKETED BY

KYLE FANT | SENIOR ASSOCIATESRS NATIONAL NET LEASE GROUP

610 Newport Center Drive, Suite 1500 | Newport Beach, CA 92660DL: 973.632.1386

Kyle.Fant@srsre.com | NY License No. 10401281546

BRITT RAYMOND | FIRST VICE PRESIDENTSRS NATIONAL NET LEASE GROUP

610 Newport Center Drive, Suite 1500 | Newport Beach, CA 92660DL: 704.517.4712

Britt.Raymond@srsre.com | NY License No. 10401234463

PATRICK R. LUTHER, CCIM | MANAGING PRINCIPALSRS NATIONAL NET LEASE GROUP

610 Newport Center Drive, Suite 1500 | Newport Beach, CA 92660DL: 949.698.1115 | M: 480.221.4221

Patrick.Luther@srsre.com | CA License No. 01209944

MATTHEW MOUSAVI | MANAGING PRINCIPALSRS NATIONAL NET LEASE GROUP

610 Newport Center Drive, Suite 1500 | Newport Beach, CA 92660DL: 949.698.1116 | M: 714.404.8849

Matthew.Mousavi@srsre.com | CA License No. 01732226

Actual Site

Actual Site

5INVESTMENT SUMMARY

INVESTMENT HIGHLIGHTS

7PROPERTY OVERVIEW

PARCEL MAPAERIALS

SITE PLAN LOCATION MAP

12AREA OVERVIEW

CITY OVERVIEWDEMOGRAPHICS

14FINANCIALS

RENT ROLLTENANT PROFILE

INVESTMENT SUMMARY OFFERING

PROPERTY SPECIFICATIONS

Actual Site

5 / WALGREENS / JACKSONVILLE, FLORIDA INVESTMENT SUMMARY / SRS NATIONAL NET LEASE GROUP

SRS National Net Lease Group is pleased to present the rare opportunity to acquire the fee simple interest (land and building) in Walgreens, a NN leased, investment property with drive-thru located in Jacksonville, Florida. The tenant, Walgreens, has approximately 4 years remaining in the initial term with 5 (5-year) option periods to extend. The lease is corporate guaranteed and is NN with landlord responsibilities limited to roof and structure.

The subject site is located at the signalized, hard corner intersection of Norwood Avenue and W 44th Street (combined 19,100 cars per day) and is just off the exit of Interstate 95 (109,000 cars per day). The asset has excellent visibility and access on a corner with multiple points of ingress/egress. Walgreens is just across from The Gateway Town Center, a 576,000 SF retail center anchored by a strong performing Publix Supermarket. Nearby national tenants include Hibbett Sports, Family Dollar, Foot Locker, Firestone Auto Care, McDonald’s and more, further increasing consumer traffic and crossover shopping to the trade area. In addition, the site is adjacent to a vacant 176,000 SF enclosed mall which is being redeveloped into a new 1,000 unit multi-family apartment complex. Walgreens is poised to benefit from the limited competition in the area and the new adjacent apartment development. Last, the Walgreens site is ideally located just 2.2 miles North of UF Health Hospital, a level 1 trauma hospital with 695 beds. The 5-mile trade area is supported by a dense population of approximately 179,000 with an average household income of $48,000.

PRICING: $2,185,000

NET OPERATING INCOME: $144,200

CAP RATE: 6.60%

GUARANTY: Corporate

CREDIT RATING: S&P: BBB

LEASE TYPE: NN

LANDLORD RESPONSIBILITIES: Roof & Structure

RENTABLE AREA: 14,000 SF

LAND AREA: 1.45 Acres

PROPERTY ADDRESS: 5108 Norwood Avenue, Jacksonville, FL 32208

YEAR BUILT: 1996

PARCEL NUMBER: 030023-0040

OWNERSHIP: Fee Simple (Land and Building)

INVESTMENT HIGHLIGHTS

Actual Site

6 / WALGREENS / JACKSONVILLE, FLORIDA INVESTMENT HIGHLIGHTS / SRS NATIONAL NET LEASE GROUP

CORPORATE GUARANTEED | INVESTMENT GRADE TENANT | OPTIONS TO EXTEND• 4 years remaining in the initial term with 5 (5-year) options to extend• Walgreens corporate guaranteed lease• Investment grade tenant (NYSE: WAG | S&P: BBB)

NN LEASE | FEE SIMPLE OWNERSHIP | LIMITED LANDLORD RESPONSIBILITIES• Tenant pays for CAM, insurance, and taxes• Ideal, low-management investment for an out-of-state, passive investor• Landlord responsibilities limited to roof and structure

SIGNALIZED HARD CORNER INTERSECTION | EXCELLENT VISIBILITY AND ACCESS | DRIVE-THRU EQUIPPED

• Located at the signalized, hard corner intersection of Norwood Avenue and W 44th Street (combined 19,100 cars per day)

• Walgreens is just off Interstate 95 with direct on/off ramp access (109,000 VPD)• The asset is drive-thru equipped with excellent visibility and access on a corner site• Drive-thru feature provides ease and convenience for customers

2.2 MILES NORTH OF UF HEALTH JACKSONVILLE HOSPITAL (695 BEDS)• The subject property is ideally located just 2.2 miles North of UF Health Hospital, a

level 1 trauma hospital with 695 beds• Convenient location for patients to access and receive their medicine quickly

ACROSS FROM GATEWAY TOWN CENTER (576,000 SF RETAIL CENTER) | NEARBY NATIONAL TENANTS

• Walgreens is just across from The Gateway Town Center, a 576,000 SF retail center anchored by a strong performing Publix Supermarket

• Nearby national tenants include Hibbett Sports, Family Dollar, Foot Locker, Firestone Auto Care, McDonald’s and more

• Increases consumer traffic and crossover shopping to the trade area

ADJACENT TO NEW APARTMENT DEVELOPMENT | LIMITED COMPETITION• Walgreens is adjacent to a vacant 176,000 SF enclosed mall which is being

redeveloped into a new 1,000 unit multi-family apartment complex• The asset is poised to benefit from the limited competition in the area and the new

adjacent apartment

STRONG DEMOGRAPHICS IN 5-MILE TRADE AREA • More than 179,000 residents and 152,000 employees support the trade area• Average household income of $48,000

PROPERTY OVERVIEW

PARCEL MAP

Actual Site

7 / WALGREENS / JACKSONVILLE, FLORIDA PROPERTY OVERVIEW / SRS NATIONAL NET LEASE GROUP

ACCESSThere are three (3) access points with one (1) access point along Norwood Avenue/State Highway 117 and two (2) along W. 44th Street.

TRAFFIC COUNTSNorwood Avenue/ State Highway 117: ..........................................15,900Interstate 95: ............................................................................... 109,000

IMPROVEMENTSThere is approximately 14,000 SF of existing building area.

PARKINGThere are approximately 64 parking spaces on the owned parcel. The parking ratio is approximately 4.57 stalls per 1,000 SF of leasable area.

YEAR BUILT1996

PARCELParcel Number: 030023-0040 Acres: 1.45 Square Feet: 63,118

ZONINGCCG-1

N

15,900CARS PER DAY

N

19,000CARS PER DAY

109,000CARS PER DAY

15,900CARS PER DAY

Kim's Fashions

NORWOOD AVE.

W. 44TH ST.

LEXINGTON DR.

PYLON SIGN

N

N

JACKSONVILLE

2016 ESTIMATED POPULATION1 Mile ......................................................... 11,1503 Mile ......................................................... 73,9725 Mile ........................................................178,612

2016 AVERAGE HOUSEHOLD INCOME1 Mile ........................................................$33,349 3 Mile ........................................................$39,547 5 Mile ........................................................$48,215

2016 ESTIMATED TOTAL EMPLOYEES1 Mile ........................................................... 4,3473 Mile ......................................................... 53,3275 Mile ........................................................152,116

Jacksonville, the largest city in Florida, is located in Duval County in the northeast corner of Florida, on the banks of the St. Johns River and adjacent to the Atlantic Ocean. It is the largest metropolitan area in northeast Florida and southeast Georgia. The city’s estimated population as of July 1, 2015 was 868,031 people.

As with much of Florida, tourism is also important to the Jacksonville area, particularly related to golf. Jacksonville is home to a number of attractions including Jacksonville Landing, Jacksonville Riverwalks, Jacksonville Maritime Museum, Jacksonville Zoo and Gardens and St. Johns River Park or Friendship Park. Some of the many popular annual events hosted by the city are Gate River Run, the Blessing of the Fleet and the Great Atlantic Seafood and Music Festival, Jacksonville Film Festival and AT&T Greater Jacksonville Kingfish Tournament.

Jacksonville is the leading transportation and distribution hub in the state. However, the strength of the city’s economy lies in its broad diversification. The area’s economy is balanced among distribution, financial services, biomedical technology, consumer goods, information services, manufacturing, and other industries. More than 50,000 new jobs have been created by companies expanding or relocating in Jacksonville during the last five years. A central location with access to road, rail, sea and air trans-portation has made Jacksonville the intermodal hub of the southeast United States.

With a growing population, a strong economy, diverse cultural and recreational opportunities and abundant natural resources, Jacksonville continues to distinguish itself as one of the nation’s most dynamic and progressive cities.

Jacksonville is home to many prominent corporations and organizations, including the headquarters of four Fortune 500 companies: CSX Corporation, Fidelity National Financial, Fidelity National Infor-mation Services and Southeastern Grocers. Interline Brands is based in Jacksonville and is currently owned by The Home Depot. The Florida East Coast Railway, Swisher International Group and the large short line railroad holding company RailAmerica are also based in Jacksonville.

Jacksonville’s appeal as a premier place to do business has been reinforced by national media atten-tion, including a steady ranking among the top ten best places to live by Money magazine. A growing economy, a strong workforce and an excellent living environment are just some of the reasons why one should do business in Jacksonville.

AREA OVERVIEW OF JACKSONVILLE, FLORIDA

12 / WALGREENS / JACKSONVILLE, FLORIDA AREA OVERVIEW / SRS NATIONAL NET LEASE GROUP

AREA OVERVIEW (CONTINUED)

13 / WALGREENS / JACKSONVILLE, FLORIDA AREA OVERVIEW / SRS NATIONAL NET LEASE GROUP

DEMOGRAPHICS 1 MILE 3 MILES 5 MILES

2016 Estimated Population 11,150 73,972 178,6122021 Projected Population 11,461 75,729 184,2792010 Census Population 10,935 73,059 172,711Projected Annual Growth 2016 to 2021 0.55% 0.47% 0.63%Historical Annual Growth 2010 to 2016 0.27% 0.17% 0.46%

2016 Estimated Households 4,573 29,346 70,6222021 Projected Households 4,679 29,984 72,8632010 Census Households 4,525 29,171 68,605Projected Annual Growth 2016 to 2021 0.46% 0.43% 0.63%Historical Annual Growth 2010 to 2015 0.15% 0.08% 0.40%

2016 Estimated White 10.90% 13.80% 28.50%2016 Estimated Black or African American 86.30% 83.00% 66.40%2016 Estimated Asian or Pacific Islander 0.40% 0.60% 1.20%2016 Estimated American Indian or Native Alaskan 0.20% 0.30% 0.40%2016 Estimated Other Races 0.40% 0.60% 1.20%2016 Estimated Hispanic 2.20% 2.60% 4.70%

2016 Estimated Average Household Income $33,349 $39,547 $48,215 2016 Estimated Median Household Income $22,202 $26,650 $32,897 2016 Estimated Per Capita Income $13,748 $16,514 $20,009

2016 Estimated Total Businesses 439 2,946 8,1502016 Estimated Total Employees 4,347 53,327 152,116

FINANCIAL INFORMATION PROPERTY SPECIFICATIONS

RENT ROLL

LEASE TERM RENTAL RATES

TENANT NAME SQUARE FEET LEASE START LEASE END BEGIN INCREASE MONTHLY PSF ANNUALLY PSF RECOVERY TYPE OPTIONSWalgreens 14,000 11/18/1996 11/30/2021 Current - $12,017 $0.86 $144,200 $10.30 NN 5 (5-Year)

Corporate Guaranty at same rent

Note: Tenant has the right of first refusal.

Actual Site

WALGREENSWalgreens, one of the nation’s largest drugstore chains, is included in the Retail Pharmacy USA Division of Walgreens Boots Alliance, Inc. (NASDAQ: WBA), the first global pharmacy-led, health and wellbeing enterprise. More than 8 million customers interact with Walgreens each day in communities across America, using the most convenient, multichannel access to consumer goods and services and trusted, cost-effective pharmacy, health and wellness services and advice. Walgreens operates 8,173 drugstores with a presence in all 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. Walgreens digital business includes Walgreens.com, drugstore.com, Beauty.com and VisionDirect.com. More than 400 Walgreens stores offer Healthcare Clinic or other provider retail clinic services.

TENANT PROFILE

14 / WALGREENS / JACKSONVILLE, FLORIDA RENT ROLL / SRS NATIONAL NET LEASE GROUP

Price: .......................................................................................................................................$2,185,000Net Operating Income: ...............................................................................................................$144,200Cap Rate: ........................................................................................................................................ 6.60%Lease Type:.......................................................................................................................................... NN

Year Built: ......................................................................................................................................... 1996Rentable Area: ...........................................................................................................................14,000 SFLand Area: ................................................................................................................................ 1.45 AcresAddress: ............................................................................5108 Norwood Avenue, Jacksonville, FL 32208

Company Type: .............Public (NASDAQ: WBA)2016 Employees: ................................. 247,0002016 Revenue: .............................. $117 Billion2016 Net Income: ........................ $4.14 Billion2016 Assets: ................................$72.69 Billion2016 Equity: ................................$29.88 BillionRanking: ..............................#19 in Fortune 500

800+PROPERTIES CURRENTLY

REPRESENTED

$2.6B*TRANSACTION VALUE

600+CLIENTS REPRESENTED

IN 2016

250+BROKERS,

PROFESSIONALS,AND STAFF

#1LARGEST REAL ESTATE FIRM

EXCLUSIVELY DEDICATED TO RETAIL SERVICES IN NORTH AMERICA

20+OFFICES

*STATISTICS ARE FOR 2016.

SRS GLOBAL STATS

Actual Site