Lease vs. Buy Mini Case 2021 (AMAZON)

Offering Memorandum Miami, FL

CUBE WYNWD

TABLE OF CONTENTS

INVESTMENT SUMMARY 3

BUSINESS PLAN 4

PROPERTY OVERVIEW 5

TENANT DETAILS 6

FLOORPLANS 7

FINANCIAL SUMMARY 9

NEIGHBORHOOD SUMMARY 17

WYNWOOD DEVELOPMENT MAP 20

MARKET COMPARABLES 21

NEIGHBORHOOD PHOTOS 23

MARKET OVERVIEW 24

SPONSOR OVERVIEW 25

PROPERTY OVERVIEW

5

Cube Wynwd consists of ~86k SF of rentable area on a lot of 14,625 SF. The Property is a few steps away from NW 2nd Ave, Wynwood’s main pedestrian/vehicular thoroughfare and retail corridor. 2nd Ave is defining itself as the cultural center of Wynwood, attracting visitors to The Wynwood Walls, its many galleries, and the area’s unique restaurants and bars. Some of the area’s most notable attractions include The Wynwood Walls, Panther Coffee, Coyo Taco, Wynwood Block, The Wood Tavern, and Wynwood Kitchen & Bar, all located within walking distance of the Property, further supporting the retail foot traffic and cache of the location. The architecture and landscape of the Property is inspired by the industrial style of Wynwood and subtropical climate of the region. In keeping with Floridian style, Cube Wynwd’s ground floor features a 30-foot-wide passive breezeway, which runs the full depth of the building and terminates in an open-air office lobby with a nine-story tall breeze block wall. The building maintains the classic design aesthetic that has made Wynwood Miami’s epicenter for creative, tech, media and information office tenants. The Property also offers 130 offsite parking spots available to tenants, located on an ~16k SF lot a few blocks SE of the Cube, as well as valet parking.

The Property is ideally situated with easy access to major expressways via I-95 and I-195 as well as proximity to other key neighborhoods such as Edgewater, Design District, MiMo and Downtown Miami. Additionally, Cube Wynwood is just minutes away from Miami Central train station, home to the Brightline passenger train, MetroMover, Metrorail and TriRail.

OFFICE SAMPLE FLOORPLAN

8

NEIGHBORHOOD SUMMARY

17

Wynwood’s remarkable growth and development over the past ten years from a light industrial warehouse district to a thriving arts, entertainment and retail district has attracted crowds of locals and tourists alike.

Wynwood is centrally located minutes from Downtown Miami, South Beach and The Design District, and enjoys excellent regional access via I-95, I-395 and I-195. This combination of strategic location and access was a key factor in the neighborhood’s emergence.

NEIGHBORHOOD SUMMARY

18

Wynwood’s rapid evolution has been fueled by creatives and entrepreneurs that have opened art galleries, restaurants, bars, and shops that have become institutions in the community. Wynwood has also attracted droves of creative office users, driving activity in the neighborhood during work days. These pioneers have predominantly signed leases in adaptive reuse buildings that provided small functional spaces and manageable economics relative to more mature submarkets such as Brickell and South Beach. Wynwood is quickly becoming Miami’s answer to neighborhoods like Williamsburg in New York, West Loop in Chicago, and Abbot Kinney in Los Angeles.

Wynwood’s next stage of evolution is being driven by large scale vertical development of residential and office mixed-use projects, with several of these projects, such as Cube Wynwd, recently delivered and others either under-construction or preparing to break ground over the next 12 months. Wynwood is on track to welcome over 460 new residential units and more than 760,000 square feet of office space. These projects will deliver increased density and transform the neighborhood into a 24-7 live, work, play community.

With a prime location in the neighborhood’s epicenter, the Property is well positioned to capitalize on the growing customer base and subsequent demand for office, retail, and multifamily space in this expanding neighborhood.

Wynwood’s neighborhood community center is the Wynwood Walls, one of the largest commissioned mural programs in the world located along NW 2nd Avenue between NW 25th and NW 26th Streets. The constantly evolving Walls first opened for Art Basel 2009 and have included more than 50 artists from 16 countries. The Wynwood Walls cover over 80,000 sf of mural space and have received media coverage from the New York Times, BBC News, Vanity Fair, and Forbes. The Wynwood Doors opened in 2010 with 176 feet of roll-up storefront gates and the project further expanded in 2011 with additional murals outside the original park known as Outside the Walls.

NEIGHBORHOOD SUMMARY

19

Wynwood was recently ranked by Forbes Magazine as one of America’s Best Hipster Neighborhoods and was named one of the Greatest Places in America by the American Planning Association. The neighborhood has become so popular that it has one of the most sought-after demographics for retailers around the world. As of the end of 2019 the following data has been recorded:

Wynwood spans over 50 city blocks and is home to more than 400 businesses including art galleries, restaurants, boutique shops and design studios, all of which contribute to a local spending of $552 million dollars every year by out-of-town visitors.

Wynwood capitalizes on word of mouth marketing through social media. For every person that shares a picture in Wynwood on social media, more than 100 people will see it. Wynwood currently has 3.1M hashtags on Instagram.

Daytime population expected to increase by 2,800 or more based on the 197,000 square feet of office space under construction.

Full-time population expected to increase by 1,206 based on delivery of 464 units at a market average 2.6 persons per household.

Wynwood Population Data: • 10,000 – weekly population • 30,000 – weekend population • 4,500 – daytime employment • 1.5M & Growing – visitors per quarter

Wynwood Market Data: • New residential rental projects are exceeding $3 rents per square foot • Retail rents: 279 percent growth since 2011 • Average annual retail rent growth since 2011: 31 percent

20

WYNWOOD DEVELOPMENT MAP

OFFICE MARKET LEASE COMPARABLES

22

Building Name/ Address Landlord Year Built/Ren. Submarket Tenant Square Feet Term Gross Rent The Oasis Carpe Real Estate Partners 2020 Wynwood Spotify 18,354 130 $57.00 545 Wyn Sterling Bay 2020 Wynwood Gensler 13,456 129 $59.00 Wynwood Annex East End/Related 2019 Wynwood Live Nation 7,954 130 $57.00 Wynwood Garage Goldman Properties 2018 Wynwood WeWork 30,000 144 $54.00 The Cube Red Sky 2018 Wynwood Spaces* 24,000 132 $52.00 The Plaza Agave Holdings Under Construction Coral Gables BAC Bank 65,000 144 $52.00 2850 Tigertail / 2850 Tigertail Ave. The Related Group 2021 Coconut Grove Ratzan Law 6,200 126 $67.00 Cocowalk / 3015 Grand Ave Grassriver Properties 2020 Coconut Grove Spaces* 40,000 128 $52.00 830 Brickell / 830 Brickell Ave. OKO and Cain 2022 Brickell None 701 Brickell / 701 Brickell Ave. Nuveen Real Estate 1985/2012 Brickell MG&M 14,500 87 $65.00 Brickell World Plaza / 600 Brickell Elm Spring, Inc. 2011 Brickell Morgan Lewis 22,000 127 $60.00 Brickell World Plaza / 600 Brickell Elm Spring, Inc. 2011 Brickell I-Squared Capital 18,763 129 $60.00 801 Brickell Nuveen Real Estate 1986 Brickell Odyssey Reinsurance 4,661 126 $61.00 801 Brickell Nuveen Real Estate 1986 Brickell CGI Merchant Group 3,875 75 $60.00 Four Seasons / 1441 Brickell Jamestown, L.P. 2003 Brickell Summa 14,000 84 $62.00 Southeast Financial / 200 S. Biscayne Blvd Ponte Gadea USA, Inc. 1984 Downtown Miami Rialto Capital 45,000 132 $52.00 The Optima Red Tower Inmobiliaria Brom 2013 Aventura law firm 22,500 128 $54.00 One Turnberry Place / 19495 Biscayne Blvd. Triarch Capital Group, LLC. 1987/2002 Aventura Evan Brody CPA 12,500 124 $53.00 Brickell Arch Gaedeke 2004 Brickell Abanca Bank 6,423 84 $57.00 Brickell Arch Gaedeke 2004 Brickell Legg Mason 5,454 120 $56.00 Maximum $67.00 Minimum $52.00 Weighted Average $57.01 * Lease signed in 2018

Class A Office Lease Comparables - All Leases Signed in 2019

NEIGHBORHOOD PHOTOS

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MIAMI MARKET OVERVIEW

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Downtown Miami Population: 88,540 Population Density: 23,300/sq mile Daytime Population: 234,976 Downtown Miami Households: 46,130 Miami-Dade County Population: 2,712,952 Total MSA Population 2015: 6,012,331 Average Age: 35 Median Household Income: $66,498

Total Visitors Annually 13,900,000

Median Length of Stay 5.7 nights

Average Party Size 2.03

Total Annual Visitor Spending $24.4 billion

Total Annual Economic Impact $36.6 billion

Known as the “Magic City,” Miami is an international hub of cultural diversity and world-class offerings. Miami is home to the largest concentration of international and domestic banks south of New York. This global city has more than 1,000 multi-national corporate office headquarters, 73 foreign consulates, and 21 foreign trade offices. Miami International Airport serves more than 39 million passengers annually, making it the second leading gateway to the United States, behind only JFK Airport.

Miami has transformed from a leisure and vacation destination to a city of business, art, culture, and lifestyle. Neighborhoods including Downtown, Brickell, Wynwood, Design District, Edgewater, and Midtown have emerged and sculpted the city into the thriving metropolitan area it is today.