TROPITONE FURNITURE MANUFACTURING FACILITY...were once again vibrant and enjoyable. Suburban communities were being created with clusters of new homes and apartments that included

TROPITONE FURNITURE MANUFACTURING FACILITY

1401 Commerce Boulevard, Sarasota , Flor ida 34243

Confidential Offer ing Memorandum

DEREK BORNHORST, CCIMSENIOR VICE PRESIDENT

(239) 210-7607

[email protected]

JERRY MESSONNIER, SIORPRINCIPAL

(239) 210-7610

[email protected]

BOB JOHNSTON, SIORPRINCIPAL

(239) 210-7601

[email protected]

6300 Techster Blvd., Suite 1, Ft. Myers, FL 33966

Lee & Associates-Naples|Ft. Myers (“Agent”) has been engaged as exclusive agent for the sale of 1401 Commerce Boulevard, Sarasota, Florida 34243 (the “Property”). The Agent makes no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. Neither the enclosed materials nor any information contained herein is to be used for any other purpose or made available to any other person without the express written consent of the Seller. Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller. Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller’s obligations thereunder have been satisfied or waived.

CONFIDENTIAL MEMORANDUM AND DISCLAIMER

Lee & Associates |Naples-Ft. Myers6300 Techster Boulevard, Suite 1, Fort Myers, FL 33966

Bob Johnston, SIOR, Principal | Jerry Messonnier, SIOR, Principal | Derek Bornhorst, CCIM, Senior Vice President

O F F E R I N G M E M O R A N D U M

O F F E R I N G S U M M A RY 1

T E N A N T H I S TO RY 2-3

P R O P E R T Y D E S C R I P T I O N

Building Description 4

Subject Aerials / Location 5

Interior Photographs 6

Exterior Photographs 7-8

Survey 9

Bountary Survey 10

Plat Map 11

E N V I R O N M E N TA L I N F O R M AT I O N 12 - 13

CO N TAC T I N O F O R M AT I O N 14

1401 Commerce Boulevard, Sarasota, Flor ida 34243

EXCLUSIVE ADVISORS

TABLE OF CONTENTS

TROPITONE FURNITURE MANUFAC TURING FACILIT Y

BOB JOHNSTON, SIOR

Principal

Lee & Associates

(239) 210-7601

[email protected]

DEREK BORNHORST, CCIM

Senior Vice President

Lee & Associates

(239) 210-7607

[email protected]

JERRY MESSONNIER, SIOR

Principal

Lee & Associates

(239) 210-7610

[email protected]

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1401 Commerce Boulevard, Sarasota, Florida 34243

TROPITONE FURNITURE M A N U F A C T U R I N G F A C I L I T Y

OFFERING SUMMARY

Lee & Associates is proud to offer for sale a single tenant, triple net industrial investment in growing Sarasota, Florida. The lease is with Tropitone Furniture Company, Inc., a wholly owned subsidiary of Brown Jordan International, Inc.

Offering Price: $3,950,000 or $18.67/SF CAP Rate: 9.4%

LEASE INFORMATION

FROM TO MONTHLY RENT NUMBER MONTHS RENT

PAID

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8/1/2017 7/31/2018 $30,042 11* $330,462

8/1/2018 7/31/2019 $30,943 11* $340,376

8/1/2019 7/31/2020 $31,872 12 $382,459

8/1/2020 7/31/2021 $32,828 12 $393,933

8/1/2021 7/31/2022 $33,813 12 $405,751

8/1/2023 7/31/2023 $34,827 12 $417,923

8/1/2023 10/31/2023 $35,872 3 $107,615

Remaining Primary Lease Term: 72 months – expires 10/31/2023Annual Increases: 3%Renewal Options: Two 2 year options – 180 day noticeEarly Termination Option: 12/31/2020 with 180 day notice and Early Termination Penalty: $164,138 *Remaining Rent Abatement 2 months: 8/1/2017 to 8/30/2017 and 8/1/2018 to 8/31/2018Lessor Responsibilities: Roof and Structural ElementsLessee Responsibilities: Property taxes, insurance, utilities, HVAC repair and replacement

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Tropitone® began in the wake of World War II. In the early 1950s, post war families in the USA were establishing households and becoming mobile. Veterans returning from the War were ready to settle down and start families. Buying a house was made a realistic possibility through VA loans designed to help veterans and support the peacetime economy through homebuilding. Cities were once again vibrant and enjoyable. Suburban communities were being created with clusters of new homes and apartments that included lawns, gardens, patios and pools. All of these homes

TENANT HISTORY: SIX T Y YEARS AND GOING STRONG AT TROPITONE



apartments, hotels, motels, clubs and resorts needed outdoor furniture for the lawn, garden, patio and pool.

In 1954, Burt M. Baker, a retired engineer for Lockheed Aircraft and Grand Rapids Chair Co, moved to Sarasota, Fla, and bought the Sarasota Redwood Furniture Company. Drawing upon his experience, Baker switched from redwood to aluminum for the frames of his outdoor patio furniture.

The Tropitone® Furniture Company and the Tropitone® brand were born.

People who had enjoyed the outdoors with Tropitone® brand outdoor patio furniture at these commercial properties began asking how they could buy such stylish and durable outdoor furniture for their own homes and apartments. Tropitone® decided to fill that demand by offering commercial-performance outdoor patio furniture at retail for residential use. This capability allows both commercial and residential customers to get exactly what they want, when they want it.

The Tropitone® brand of outdoor patio furniture changed the performance standards of an entire industry by applying the rigorous product and service requirements of the highly-demanding commercial outdoor patio furniture market to the residential market.

In 1970, Tropitone® established operations in Orange County, Calif, to serve the ever-growing demand for outdoor patio furniture in western North America. This western base grew into a full-service manufacturing facility and eventually became Tropitone® Furniture Company’s headquarters.

This move gave Tropitone® the bicoastal manufacturing advantage it continues to enjoy today. Full service manufacturing and distribution operations in Sarasota, Fla, and Irvine, Calif, provide Tropitone® the ability to quickly respond to ever-changing marketplace conditions for outdoor patio furniture by being close to the North American customers.

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Beginning in 1978 many outdoor patio furniture companies decided to shutter their North American facilities and outsource manufacturing to China factories. Tropitone® steadfastly maintained its North American bi-coastal manufacturing facilities to best meet the long-standing high performance requirements of our distribution partners and customers.

Tropitone® Furniture Company’s bicoastal presence provides the Tropitone® brand with the unique ability to specialize in two key service requirements for both commercial and residential customers: 1) short order-to-ship cycle time; and 2) customized outdoor patio furniture manufactured and shipped within that cycle time.

Today, the Tropitone® Furniture Company has broad and deep portfolios of products specifically designed for the commercial and residential outdoor spaces. All are designed with the same standard of performance excellence. And the purchase and ownership experience of those that design and use outdoor spaces is guided by the same standards of excellence. It is this seamless integration of form, function and service that defines Tropitone®. The Company operates primary manufacturing facilities in Irvine, CA and Sarasota, FL.

“This year marks the 60th anniversary of the founding of Tropitone® Furniture Company,” said Cap Hendrix, President and CEO of Tropitone®. “I am honored to be a part of Tropitone® for over 15 years. As a Director, I had the opportunity to work with Doug Baker, the third generation of family ownership. Under the leadership of Doug, CEO Mike Echolds and Chairman Charlie Farrell, the dedicated Tropitone® team transformed a nice family business into an industry powerhouse.“Since 2008, I also have had the good fortune of serving as CEO for Tropitone® Furniture Company’s current ownership group led by Pfingsten Partners,” added Hendrix. “We could not have had better financial support and strategic leadership under the extreme economic conditions of the great recession. With the guidance of our Board of Directors, that same incredible Tropitone® team navigated the Company through the great recession and entered this growth cycle even stronger. Tropitone® is positioned for another 60 years of success.”

For more information regarding Tropitone® please visit their website at www.tropitone.com.

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BUILDING DESCRIPTION

Property is improved with a manufacturing facility comprising 211,472 rentable square feet. The building includes 9,150 square feet of office space and balance of 123,500 square feet of manufacturing and warehouse space on the ground floor with 83,000 square feet of mezzanine space used for production and storage purposes.

The initial building was constructed in 1965. There were expansions in 1969, 1979 and 1983. The improvements are in average condition with no major items of deferred maintenance noted.

The building construction is metal walls and roof on a concrete foundation. The office space has tile and carpet flooring, acoustic tile ceilings and fluorescent lighting with HVAC. The warehouse has exposed steel rafters, sealed concrete flooring and suspended fluorescent lighting..

• Rentable Building Square Feet: 211,472 • The property is comprised of 8 parcels totaling 7.8+- acres of land.• Building Sprinkler System• Separate fenced and gated yard • Overhead doors – Two (2) grade level doors • Docks – There are eight (8) docks and one interior truck well. • Irrigation system with well • Utilities: Electric: Duke Energy Water/sewer: Manatee County Phone: Verizon Police/Fire: Manatee County• Property is situated in Flood Zone X. Flood hazard insurance is not required for building in

this designation. • Power: 4,000 amp, 277/480 volt service with extensive distribution

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SUBJECT AERIALS / LOCATION



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SARASOTA BRADENTONINTERNATIONAL AIRPORT

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53 AVE EAST53 AVE EAST

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INTERIOR PHOTOS



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EXTERIOR PHOTOS



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FENCED AREA PHOTOS

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SURVEY



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BOUNDARY SURVEY



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PLAT MAP



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ENVIRONMENTAL INFORMATION* - 1401 COMMERCE BOULEVARD, SARASOTA, FLORIDA



In 2006, the presence of possible contamination was discovered at the property of Indigo Blue Ventures, LLC (“IBV”) located at 1401 Commerce Boulevard, Sarasota. Florida (the “Property”), and was reported to the Florida Department of Environmental Protection (“FDEP”).

Subsequent testing revealed contamination in the soil on a portion of the property, and in the groundwater throughout the property. The affected soil was removed and replaced to the satisfaction of FDEP, and is no longer an issue.

While the source of the contamination was not clearly determined, it is believed that more recent and current operations by Tropitone Furniture Co., Inc., former owner of the subject property and currently a tenant at the subject property, have not contributed to the contamination, as the concentrations of contaminants have decreased since then as indicated below.

The groundwater contaminants, most notably 1-dichloroethene, vinyl chloride, and 1-4 dioxane, were determined to exist at concentrations that did not require their removal from the groundwater. However, they did exist at concentrations requiring the property owner to enter into a plan with FDEP for quarterly groundwater monitoring, and for reporting those results to FDEP.

In addition, since the groundwater contamination had migrated northward from the subject property onto a relatively small portion of the adjacent northerly property (measuring approximately 50 feet from south to the maximum northerly extent, and approximately 250 feet running from east to west), the monitoring plan required the subject property owner to similarly monitor the groundwater concentration on the adjacent northerly property quarterly from samples collected from a few monitoring wells installed on the adjacent property, and to also report those results to FDEP. The adjacent northerly property is owned by Key Packaging Company, Inc. (“Key Packaging”).

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ENVIRONMENTAL INFORMATION* - 1401 COMMERCE BOULEVARD, SARASOTA, FLORIDA



Over the course of time, the groundwater contaminant concentrations on both the subject property, and the adjacent northerly property, had naturally reduced to a point where FDEP was willing to consider granting closure on the two properties (considered a single “Site” for such purposes). Such closure would result in FDEP oversight of the subject property and the adjacent property ceasing, with no further monitoring required on either property.On June 22, 2017, FDEP issued its Conditional Site Rehabilitation Completion Order (“SRCO”), effectively granting such environmental closure to the Site.

The remaining obligation of IBV under the SRCO is the filling and capping (i.e. so-called “abandonment”) of each of the monitoring wells on each of the properties comprising the Site within sixty (60) days of the date of the SRCO.

Well abandonment activities on the properties comprising the Site are scheduled to Commence on July 31, 2017, with abandonment completion estimated to take a total of four (4) days.

• CAVEAT: This Environmental Disclosure is intended as a brief overview only, and not as a complete and comprehensive account of the environmental history of the Property or of the adjacent northerly property. A more comprehensive account of such environmental history can be found in the public records of the Florida Department of Environmental Protection with respect to the Property and the adjacent northerly property with the following reference: FDEP Site #COM _266439/FDEP Project #298706.



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DEREK BORNHORST, CCIMSENIOR VICE PRESIDENT

(239) 210-7607

[email protected]

JERRY MESSONNIER, SIORPRINCIPAL

(239) 210-7610

[email protected]

BOB JOHNSTON, SIORPRINCIPAL

(239) 210-7601

[email protected]

6300 Techster Blvd., Suite 1, Ft. Myers, FL 33966

Documents

TROPITONE FURNITURE MANUFACTURING FACILITY...were once again vibrant and enjoyable. Suburban communities were being created with clusters of new homes and apartments that included