r/ Gainesville yy Subject Property Rendering - To be Constructed Nassau re} The ~ Bahamas o. R 4 Hav. ie ‘s Mer rce ub Turks and a c aicos ae ite - Cc u b a : cy aaa - Anna's Retreat a meancun = Camaguey Islands re ie jn cut Bay-Redhook Bay Tie Tavse nes sts Morningstar Estate Bovoni Holguin.” ‘ae gq Ravana Guantanamo St Th Stone nee Gre” i oae-O, yee ; . Thomas Santiago Cap-Haitieno JUINTANA Cayman eae - Islands Haiti ral Montego Bay — a Punta Cana 2an Juan N Jamaica " Porc au. Brice Puerto Rico Anguilla City a EAE Antigua and Barbuda Montserrat Gua delo upe Offering Memorandum Atlanta Chicago New York ; ; . ; oy ; Houston GSA Joint Venture Equity Financing & Pre-Sale Acquisition Opportunity Los Angeles 19-F Smith Bay Road | St. Thomas, U.S. Virgin Islands Miami Phoenix New Construction Build-To-Suit Property | U.S. Citizenship & Immigrations Services Facility San Francisco GSA Guaranteed Lease (S&P Rated AA+) Tulsa HOUSE_OVERSIGHT_018727

Confidential Disclaimer This Confidential Memorandum has been prepared by Stan Johnson Company ("SJC") and is being furnished to you solely for the purpose of your review of the commercial property located at 19-F Smith Bay Rd, St Thomas 00802, US Virgin Islands (the “Property”). The material contained in this Offering Memorandum shall be used for the purposes of evaluating the Property for acquisition and shall not be used for any purpose or made available to any other person without the express written consent of Stan Johnson Company ("Broker"). By accepting the Confidential Men herein and any other information emorandum in whole or in par may have received from SJC; and foregoing agreements will require This Confidential Memorandum h norandum, you acknowledge and agree that: (1) all of the information contained you will be receiving in connection with this transaction, whether oral, written or in any other form (collectively, the “Materials”), is confidential; (2) you will not reproduce the Confidential t; (3) if you do not wish to pursue this matter, you will return this Confidential emorandum to SJC as soon as practicable together with all other materials relating to the Property which you 4) any proposed actions by you which are inconsistent in any manner with the the prior written consent of SIC. as been prepared by SJC, based upon certain information pertaining to the Property and any information obtained from SJC to assist interested parties in making their own evaluation of the Property is offered on a no representation or warranty provision other than customary warranties of title and is sold on an “as-is, where-is” basis and with all faults. The material and transaction does not purport to be all inclusive. This Confidential Memorandum contains descriptive materials, financial information and other data compiled for the convenience of parties interested in the Property. The Materials are being delivered by SJC to prospective aterials. informatio ei n contained herein or in any of the Ma investors with the understanding that it is not a investigation without relian by prospective investors of those n ce upon SJC, the Broker or any of ther SJC, the Broker, nor any of th their respective a natters which they deem appropri filiates or any of eir respective affi ate arranties as to | inclusive and that it is qualified in its entirety by independent in evaluating this offering the informatio iates have independently veri terials, and no representations or w n set out in the fied any of the the accuracy or SJC, for itself an d its affiliates of the Property, expressly disclaim any and all completeness thereof or of any other kind whatsoever are made or intended and none should be inferred. iability for staternents or representations, express or implied, contained herein or for omissions from the oral or other format of communication transmitted to a prospective investor in th proposed transaction. All summaries and d herein are qualified in their entirety by reference request may be made available. The This Confidential Memorandum does not consti solicitation of interest with respect constitute an offer of security. The i without prior notice. By accepting t from any kind of claim, expense, or the right to request the return of negotiate with one or more prospec Page 2 his Confidential Memo iability arising out of y the Materials at any t tive investors at any tim iscussions of documentation and/or to the actual documents and/or financial statements, which upon terms and conditions described herein are subj tute an offer to accept any inves to the investment described herein. The Confidential Memorandum does not nvestment described herein may be financed or withdrawn from the market, randum you agree to release SJC and hold it harmless our discovery or purchase of the Property. SJC reserves ime. Ownership of the Property reserves the right to e, ateria GSA Investment & Acquisition Opportunity | St Thomas, USVI s or for any other written, e course of its evaluation of the financial information contained ect to change without notice. tment proposal but is merely a ee) Stan Johnson Company | THE NET LEASE AUTHORITY® HOUSE_OVERSIGHT_018728

Table of Contents Section 1: Executive Summary The Offering & Highlights 5 Property Overview & Pricing & Financial Overview 6 Section 2: Financial Overview Sources, Use of Funds & Construction Timeline 8 Pro Forma NOI! & Operating Expenses 9 Section 3: Property Overview Lease Abstract 11 Tenant Overview 1.2 Site Plan 13 Maps 14 Location Overview 15 Page 3 GSA Investment & Acquisition Opportunity | St Thomas, USVI Offered Exclusively By Mark Hellwig | Director [email protected] Brandon Duff | Regional Director [email protected] Brad Feller | Senior Director [email protected] Jessica Hyman | Senior Analyst [email protected] In Association With: Sea Glass Properties USVI Lic #1-10718-1B Stan Johnson Company 303 East Wacker Drive | Suite 1111 Chicago, Illinois 60601 P: 312.240.0127 | F: 312.240.0158 ee) Stan Johnson Company | THE NET LEASE AUTHORITY® HOUSE_OVERSIGHT_018729

Executive Summary HOUSE_OVERSIGHT_018730

The Offering Stan Johnson Company is pleased to offer to qualified investors, on behalf of Ownership, a unique pre-sale/ JV investment & acquisition opportunity for a 100% fee simple interest in a brand new, to-be-built General Services Administration (GSA) facility. The Property is eased to the U.S. Government and is occupied by the Citizenship and Immigrations Services (CIS) agency, and is located on the island of St. Thomas in the U.S. Virgin slands. The proposed deal structure is a forward commitment acquisition, with the purchaser funding 100% of development costs, receiving a preferred rate of return on their outstanding equity during development, and subsequently purchasing the property upon rent commencement at a pre-determined cap rate. Ownership closed on the purchase of the underlying and in mid-2014 and is ready to start construction immediately. Qualified investors are encouraged to submit bids outlining their proposed terms & structure, to be reviewed by Ownership. The Property will be developed on an exceptionally well ocated site. It will be a 100% occupied, free standing, two-story office property of approximately 12,770 square feet on 1.89 acres. The site is located in Smith Bay on the East side of the island of St. Thomas in the US, Virgin slands. The GSA will be operating under a new, 10-year base lease term. fap) he subject Property is mission critical to CIS as it will ouse a consolidation of multiple CIS facilities including urrent facilities in St. Croix and Charlotte Amalie. The roperty will serve as the CIS center for the entire St. homas region to welcome and educate future US tizens. The Property is a unique opportunity for an investor to acquire a new construction property 100% eased to the GSA, while earning additional income through funding of development costs. odwavAaA Do Investment Highlights 100% Leased to and Guaranteed by the US General Services Administration - Property to house the Department of Homeland Security's Citizenship and Immigration Services agency Class A Asset with Long Term Residual Value — Property will be a modern two-story split level, state of the art, public office facility, built to withstand a CAT V hurricane Brand New 10-Year Base Lease Term - Newly signed 10-year lease, which is non-cancellable for the first ten years, at a full service rate of $49.55 per RSF Mission Critical Facility — The subject Property is truly mission critical as it will house a consolidation of multiple CIS facilities and serves as the CIS center for the entire St. Thomas region to welcome and educate future US citizens Strong Developer Track Record of GSA Projects — The developer, Hoover Properties, has successfully completed 29 different build-to- suit developments for the U.S. Government for a wide range of agencies. Inquire with broker for additional information. GSA’s Financial Contribution to Tenant Improvements - The GSA is contributing almost $1 million toward interior buildout at the Property, well in excess of the developer's $665,000 contribution LEED® Certified Building - The Property's interior space will be constructed to meet the requirements of LEED for Commercial Interiors Subject Property Site Page 5 GSA Investment & Acquisition Opportunity | St Thomas, USVI ee) Stan Johnson Company | THE NET LEASE AUTHORITY® HOUSE_OVERSIGHT_018731

Property Overview Property: Tenant: Property Address: Year Built: Rentable SF: Parcel No: Zoning: Lot Size: Occupancy: Encumbrances: Ownership Type: Lease Type: Parking Spaces: Page 6 GSA Investment & Acquisition Opportunity | St Thomas, USVI Citizenship & Immigration Services Building (GSA) United States of America, General Services Administration (Standard & Poors credit rating of AA+) 19-F Estate Smith Bay, Smith Bay Road St. Thomas, U.S. Virgin Islands Estimated 2015 or Early 2016 2770 SF 19F-E B-2 (Per Zoning Act #27-0138) +/- 1.89 Acres 100% None, Delivered Free and Clear Fee Simple; Build-to-suit Gross as to Operating Expenses. Real Estate Taxes pass-through over fully assessed base year 41+ Spaces Pricing & Financial Overview Offering Terms: Offering Forward Commitment Cap Rate & Purchase Price: Development Equity Requirement: Investor Development Preferred Return: Equity Initial Funding Date: Investor Acquisition Date: Forward Commitment (Pre-Sale/JV) Acquisition, with Purchaser funding 100% of development costs, receiving a Preferred Rate of Return on Outstanding Equity during Development, and Purchasing the Property upon Rent Commencement at a Pre- Determined Cap Rate Contact Listing Agent Contact Listing Agent Contact Listing Agent Q4 2014 (est.) O2 2016 ee) Stan Johnson Company | THE NET LEASE AUTHORITY® HOUSE_OVERSIGHT_018732

Financial Summary HOUSE_OVERSIGHT_018733

SOURCES & USES OF FUNDS Use Of Funds: Total % of Total Source Of Funds: Total % of Total $1,113,393 16.72% Investor Equity $1,618,757 24.31% Hard Project Costs $5,780,914 86.82% Loan $5,040,000 75.69% Total Uses $6,658,757 100.00% Total Sources $6,658,757 100% CONSTRUCTION TIMELINE 2014 2015 2016 Entitlement Land Acquisition Ground Breaking Equity Funding Site Work Vertical Development Delivery Tenant Build-out Investor Acquisition Lease/Rent Commencement Lease Term Page 8 GSA Investment & Acquisition Opportunity | St Thomas, USVI ee) Stan Johnson Company | THE NET LEASE AUTHORITY® HOUSE_OVERSIGHT_018734

Pro Forma NOI Operating Expenses ltem PSh* Year 1 Utilities Heat $0.00 $0 Gross Potential Income (GPI) $45.21 $577,344 Electric $0.00 $0 Water and Sewer $0.15 $1,915 - Vacancy and Collection Loss $0.00 $0 Total Utilities $0.15 $1,915 Maintenance = Net Rent Revenue $45.21 $577,344 Landscaping S074 $9,493 Janitorial $1.27 $16,155 + Operating Cost Rent Adjustment $4.34 $55,412 painting and Decorating ae 61.277 = Effective Gross Income (EGI) $49.55 $632,756.1 alFIehahes LAber aed a aintenance Contract S072 $9,271 Plumbing $0.20 $2,554 Electrical $0.20 $ 2/554 - Total Operating Expenses $9.24 $118,052 Land Lease $0.00 SO Total Maintenance S323 $41,304 = Net Operating Income (NOI) $40.31 $514,704 Administration Management Fee $0.99 $12,655 Personnel Expense $0.00 $0 Office Supplies $0.00 $0 Telephone $0.00 SO Marketing $0.00 $0 Total Administration $0.99 $12,655 Fixed Expenses Insurance $3.11 $39,762 Real Estate Taxes $1.61 $20,500 Replacement Reserves $0.15 $1,916 Total Fixed Expenses $4.87 $62,178 Total Operating Expenses $9.24 $118,052 * Building SF = 12,770 SF Page 9 GSA Investment & Acquisition Opportunity | St Thomas, USVI ee) Stan Johnson Company | THE NET LEASE AUTHORITY® HOUSE_OVERSIGHT_018735

Property Summary HOUSE_OVERSIGHT_018736

Lease Abstract Property Address: Tenant: Property Type: Building Area (SF): Lot Size (Acres): Year Built: Lease/Rent Commencement: Lease/Rent Expiration: Base Lease Term: Base Lease Term Remaining: Current Annual Rent: Amortized Tenant Improvements (annual): Rental Increases (in base term): Renewal Options: Lease Type: Expense Detail: Ownership Type: ROFR/Right of First Offer: Termination Option: Parking: LEED: Page 11 19-F Estate Smith Bay, Smith Bay Road U.S.A., General Services Administration US Department of Homeland Security Citizenship and Immigration Services 2 Story, Built-to-Suit Office 2,770 RSF .89 Acres To-be-built Upon building completion O years after building completion O years 0 Years $632,756.05 $55,433.62 None None Modified Gross - Tenant pays increases = ae se a in taxes over a base year that will be . > ¢ established upon full assessment Operating Expenses are full service, exclusive of tenant electric. GSA pays adjusted rent annually based on a base rate for occupancy cost of $4.3393 per RSF ($55,412.40) times % change in CPI Fee Simple; Build-to-suit one one 41 spaces, of which 4 shall be reserved for Government employees Tenant space will be built to meet requirements of LEED for Commercial nteriors GSA Investment & Acquisition Opportunity | St Thomas, USVI ee) Stan Johnson Company | THE NET LEASE AUTHORITY® HOUSE_OVERSIGHT_018737

Tenant Overview United States Citizenship and Immigration Services ("USCIS” or “CIS") is a component of the United States Department of Homeland Security (DHS), which in turn is under the General Services Administration (GSA). It performs many administrative functions formerly carried out by the former United States Immigration and Naturalization Service (INS), which was part of the Department of Justice. — The stated priorities of the USCIS are to promote national security, to eliminate immigration case backlogs, and to improve customer services. USCIS is headed by a director, currently Leon Rodriquez, who reports directly to the Deputy Secretary for Homeland Security. USCIS consists of 18,000 federal employees and contractors working at 250 offices around the world. USCIS is charged with processing immigrant visa petitions, naturalization petitions, and asylum and refugee applications, as well as making adjudicative decisions performed at the service centers, and managing all other immigration benefits functions (i.e., not immigration enforcement). USCIS’ official website is USCIS.gov which includes an online appointment scheduling service known as INFOPASS. This system allows people with questions about immigration to come into their local USCIS d it office and speak directly with a government employee about their case. Additionally, USCIS maintains a blog entitled “The Beacon” as well as the “@uscis” Twitter account. Unlike most other federal agencies, USCIS is funded almost entirely by user fees. Under President George W. Bush's FY2008 budget request, direct congressional appropriations made about 1% of the USCIS budget and about 99% of the budget was funded through fees. The total USCIS FY2008 budget was projected to be $2.6 billion. no \ U.S. Citizenship and Immigration Exceptional Credit Tenancy - i~< * Services Boasting an “AA+" credit rating by S&P and an “Aaa” credit rating by Moody’s, the lease is guaranteed by the United States of America. High Renewal Probability - The General Services Administration’s lease renewal probability is 96% in new, first generation space such as the Property, and the GSA remains in its space for over 25 years on average. US CITIZENSHIP AND IMMIGRATION SERVICES Page 12 GSA Investment & Acquisition Opportunity | St Thomas, USVI ee) Stan Johnson Company | THE NET LEASE AUTHORITY® HOUSE_OVERSIGHT_018738

Site Plan Citizenship and Immigration Services 12,770 SF Facility to-be Constructed 2015-2016 Mission-Critical, Consolidation of CIS Offices — St. Thomas, U.S. Virgin Islands Page 13 TEMPORARY BENCHMARK / Top of Ironpipe Boundpost Elevation 37.3" PHASE 1 GSA Parcel 1.89 Acres / US. Citizenship & Sg and Immigration ow VY ae Services “ # vA S ae GSA Investment & Acquisition Opportunity | St Thomas, USVI ee) Stan Johnson Company | THE NET LEASE AUTHORITY® HOUSE_OVERSIGHT_018739

Thatch Cay sau 5 es =) Coral World Ocean Park "8 Big Sugar Bay Resort and Spa eg Turks and Caicos aquey Islands Banes oN aso 9 : jagoun Santiago De eae Los.Caballeros Do ee a aica CO — Bani La Romana ae Bass at M aoe & a=) € Ridge Ad i Caribbean Sea Aruba Ss Curacao. Punto Fijo — Barranquilla ~ BIE $ SS Porlamar 4 Coral World Qcean Park’=) oki Point Water Bay nt Resort, = Suger Bay Resortand Spa\hs) cogter Paint r z § a FA = Diamonds In Page 14 GSA Investment & Acquisition Opportunity | St Thomas, USVI ee) Stan Johnson Company | THE NET LEASE AUTHORITY® HOUSE_OVERSIGHT_018740

Location Overview Saint Thomas is an island in the Caribbean Sea - directly east of Puerto Rico. Together with St. John and Water Island, St. Thomas forms a county and constituent district of the United States Virgin Islands (USVI), an unincorporated territory of the United States. Located . : on the island of Saint Thomas is the territorial capita = = ; - = er? 2 Soca and port of Charlotte Amalie. As of the 2010 census, the : population of Saint Thomas was 51,634 about 48.5% of the US Virgin Islands total. The district has a land area of 31.24 square miles. i In 1917, St. Thomas was purchased (along with Saint John and Saint Croix) by the United States for $25 million in gold, as part of a defensive strategy to maintain control over the Caribbean and the Panama Canal during the First World War. U.S. citizenship was granted to the residents of St. Thomas in 1927 and the U.S. Department of the Interior took over administrative duties in 1931. American forces were based on the island during the Second World War and the 1954, passage of the U.S. Virgin Islands Organic Act officially granted territorial status to the three islands - St. Thomas, St. John, and Water Island. St. Thomas . Thomas has a lively tourist trade. It is the USVI’s most osmopolitan island, yet it still retains the distinctive tmosphere of a secluded Caribbean paradise. St. omas is packed with many tourism activities including hopping, sailing, snorkeling, sightseeing, diving and ining. The Island is home to a world-renowned golf ourse, picture-perfect beaches and a spectacular nightlife. Other attractions are the Skyride (700 feet above the city) and the famous 99 Steps of Charlotte Amalie for an incomparable view of the Caribbean, as well as the second-oldest synagogue in the Western Hemisphere, the 1680-built Fort Christian. aaYVYADMDAN St. Thomas is developed with many hotels offering a variety of lodging alternatives from grand resort estates to small inns and villas. It is also a destination for many Caribbean cruises due to the Island's breathtaking views, secluded beaches and a deeply relaxing atmosphere. St. Thomas Page 15 GSA Investment & Acquisition Opportunity | St Thomas, USVI Stan Johnson Company | THE NET LEASE AUTHORITY® ® HOUSE_OVERSIGHT_018741

Stan Johnson Company THE NET LEASE AUTHORITY® Mark Hellwig | Director [email protected] Brandon Duff | Regional Director Brad Feller | Senior Director Jessica Hyman | Senior Analyst [email protected] [email protected] [email protected] In Association With: Sea Glass Properties USVI Lic #1-10718-1B Stan Johnson Company 303 East Wacker Drive | Suite 1111 Chicago, Illinois 60601 P: 312.240.0127 | F: 312.240.0158 www.stanjohnsonco.com HOUSE_OVERSIGHT_018742