Income Producing Property - FOR SALE

Description: Absolute Net Ground Lease opportunity consisting of approx. 40,302 square feet of land with approx. 7,831 square feet store built in 2012 supported by approx. 48 parking stalls with frontage on State Road PR-122 in San German, Puerto Rico.

AutoZone executed a new 15 year absolute net lease with structured rental increases of 10% every 5 years of the base term and each of the 4 additional 5 year option terms. Rental payments began October 1, 2012. The lease is guaranteed by AutoZone, Inc., a national retailer with more than 4,600 locations nationwide and listed on Fortune 500 as “BBB” credit rating with a stable outlook by Standard & Poor’s.

Location: Santiago Veve Road & Angel Castro Avenue, San Germán, Puerto Rico. Situated along a major commuter corridor and in close proximity to Mayaguez, the second largest city in Puerto Rico.

Investment Highlights:

· New 15 Year Absolute Net Ground Lease

· 10% Rental Increase Every Five Years

· Investment Grade / Corporate Store Tenant

· Annualized Rental Revenue:

o Years 1 – 5: $64,000/yr.

o Years 6 – 10: $70,400/yr. (Increases to $70,400 per year in September 2017*)

o Years 11 – 15: $77,440/yr.

o 1st Five-yr. Option: $85,184/yr.

o 2nd Five-yr. Option: $93,702.40/yr.

o 3rd Five-yr. Option: $103,072.64/yr.

o 4th Five-yr. Option: $113,379.90/yr.

Area:

3,933.8391 square meters equivalent to 1.009 Cuerdas

Location Overview: San Germán is a municipality located in the southwestern region of Puerto Rico, south of Mayaguez and Maricao; north of Lajas; east of Hormigueros and Cabo Rojo; and west of Sabana Grande. San Germán is spread over 18 wards and San Germán Pueblo (the downtown area and the administrative center of the city). It is both a principal city of the San Germán-Cabo Rojo Metropolitan Statistical area and the Mayaguez-San Germán-Cabo Rojo Combined Statistical Area. Tenants in the subject trade area include Walgreens, Big Kmart, McDonald’s, Radio Shack, KFC, Claro, Econo Supermarket, T Mobile and Banco Popular, among others.

Site Coordinates:

- Latitude: 18°04’56.32’’N

- Longitude: 67°02’03.28’’W