travelodge om

JACKSONVILLE, FL

OFFERING MEMORANDUM

TRAVELODGE INN & SUITES1153 AIRPORT ROAD

Located at

Jacksonville International Airport

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended

to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other

person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to

provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of

interest in the subject property. The information contained herein is not a substitute for a thorough due diligence

investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with

respect to the income or expenses for the subject property, the future projected financial performance of the property,

the size and square footage of the property and improvements, the presence or absence of contaminating substances,

PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements

thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue

its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from

sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the

information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and

makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided.

All potential buyers must take appropriate measures to verify all of the information set forth herein.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP

AGENT FOR MORE DETAILS.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed orimplied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify theinformation and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark ofMarcus & Millichap Real Estate Investment Services, Inc. © 2007 Marcus & Millichap

CON

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SECTION ONE...............................................PRICING & FINANCIAL ANALYSIS

SECTION TWO

..................................................PROPERTY DESCRIPTION

SECTION THREE...................................................RECENT SALES

SECTION FOUR.............................COMPETITIVE PROPERTIES

SECTION FIVE................................MARKET OVERVIEW

SECTION SIX......................DEMOGRAPHIC ANALYSIS


TABLE O

F CON

TENTS

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PRICING

& FIN

AN

CIAL A

NA

LYSIS

JACKSONVILLE, FL

TRAVELODGE INN &SUITES

PRICING

& FIN

AN

CIAL A

NA

LYSIS


PRICING

& FIN

AN

CIAL A

NA

LYSIS

1

Price $6,500,000Price per Room $33,854Down Payment 25.0% $1,625,000

Occupancy - 2006 44.9%Occupancy - Trailing 12 48.0%Occupancy - 2008 Projected 55%

ADR - 2006 $41.48ADR - Trailing 12 $44.94ADR - 2008 Projected $52.00

RevPAR - 2006 $19.86RevPar - Trailing 12 $22.94RevPar - 2008 Projected $28.60

Number of Buildings 5Number of Floors 2Number of Meeting Rooms 1Year Built/Renovated 1973 / 2006Lot Size 5.99Type of Ownership Fee Simple

VITAL DATA

CAP Rate - 2006 7.40%CAP Rate - Trailing 12 9.46%CAP Rate - 2008 Projected 13.24%

RRM - 2006 4.67RRM - Trailing 12 4.04RRM - 2008 Projected 3.18

Net Operating Income - 2006 $480,952Net Operating Income - Trailing 12 $614,716Net Operating Income - 2008 Projected $788,731

Net Cash Flow After Debt Service - 2006 6.68% $108,495Net Cash Flow After Debt Service - Trail 12 14.91% $242,259Net Cash Flow After Debt Service - 2008 Projected 25.6% $416,274

Total Return - 2006 9.99% $162,264Total Return - Trail 12 18.22% $296,028Total return - 2008 Projected 28.93% $470,043

Offering Summary

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PRICING

& FIN

AN

CIAL A

NA

LYSIS

EXISTING FINANCINGLoan Type Other

2

COMMENTSOwner has mortgage to be paid off at Closing. Not assumable.

PROPOSED FINANCING

FIRST TRUST DEED

Loan Amount $4,875,000Loan Type Proposed NewInterest Rate 6.57%Amortization 30 YearsLoan to Value 75%

Financing

O5060020

COMMENTS

Flagged Travelodge Inn & Suites March 2007Trailing 12 months to May 2007Projected 2008 based upon recent growth trends & Star Report "Economy" minus 5%


PRICING

& FIN

AN

CIAL A

NA

LYSIS

2006 % 0fGR

PAR TRAIL12

% ofGR

PAR 2008PROJECT

% ofGR

PAR

Occupancy 44.9% 48.0% 55.0%

ADR $41.48 $44.94 $52.00

RevPAR $19.86 $22.94 $28.60

INCOME

Room Revenue $1,364,255 97.9% $7105.49 $1,573,872 97.9% $8,197.25 $2,004,288 98.3% $10,439

Other Revenue 28,566 2.1% 148.78 33,495 2.1% 174.45 35,000 1.7% 182.30

GROSS REVENUE $1,392,821 $7,254.28 $1,607,367 $8,371.7 $2,039,288 $10,621.30

Total Departmental 378,196 27.2 1,969.77 401,500 25.0 2,091.15 483,200 23.8% 2516.16

Total Undistributed 435,476 31.3 2,268.10 492,954 30.7 2,567.47 642,357 30.5% 3345.61

Total Fixed Expenses 98,197 7.1 511.44 98,197 6.1 511.44 145,000 7.0% 755.21

Total Expenses $911,869 65.5% $4749.32 $992,651 61.8 $5,170.06 $1,250,557 61.3% $6616.98

NET OPERATING $480,952 34.5% $2,504.96 $614,716 38.2% $3,201.65 $788,731 38.7% $4107.98

3

Total Number of Rooms 192

Available Rentable Rooms 192

Income & Expense (2006, Trail 12, 2008)

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PRICING

& FIN

AN

CIAL A

NA

LYSIS

4

2006 % ofGR

TRAIL 12 % ofGR

2008 Projected % ofGR

DepartmentalExpenses

Rooms (26.94%) $367,534 26.4% $390,000 24.3% $470,000 23.1%

Telecommunications 10,662 0.8 11,500 0.7 13,200 .65

TOTAL $378,196 $27.20 $401,500 $25.00 $483,200 23.8%

Undistributed

Administrative & $226,193 16.2% $240,000 14.9% $255,000 12.5%

Sales & Marketing 35,151 2.5 40,000 2.5 45,000 2.2%

Franchise Fees 0 0.0 32,954 2.1 122,357 6.0%

Property Operations 56,269 4.0 60,000 3.7 65,000 3.2%

Utilities 117,863 8.5 120,000 7.5 135,000 6.6%

TOTAL $435,476 $31.30 $492,954 $30.70 $642,357 30.5%

Fixed Expenses

Incentive $0 0.0% $0 0.0% 0.0% 0.0%

FF&E Reserve 0 0.0 0 0.0 10,000 .5%

Property Taxes 53,586 3.8 53,586 3.3 87,000 4.2%

Property Insurance 44,611 3.2 44,611 2.8 48,000 2.3%

TOTAL FIXED $98,197 $7.10 $98,197 $6.10 145,000 7.0%

TOTAL EXPENSES $911,869 65.5% $992,651 61.8% $1,250,557 61.3%

NET OPERATING $480,952 34.5% $614,716 38.2% $788,731 38.7%

Expenses (2006, Trail 12, 2008)

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INCOME 2006 % ofGR

Trail 12 % of GR 2008 % of GR

Room Revenue $1,364,255 97.9% $1,573,872 97.9% $2,004,288 98.3%

Other Revenue 28,566 2.1 33,495 2.1 35,000 1.7%Gross Revenue $1,392,821 $1,607,367 $2,039,288

Total Expenses 911,869 65.5% 992,651 61.8% 1,250,557 57.8%

Adjustments 0 0.0 0 0.0 0

Net Operating Income $480,952 34.5% $614,716 38.2% $788,731 38.7%Debt Service 372,457 372,457 372,457

Debt Coverage Ratio 1.29 1.65 2.31

Net Cash Flow After Debt 6.68% $108,495 14.91% $242,259 25.6% $416,274

Principal Reduction 53,769 53,769 53,769

Total Return 9.99% $162,264 18.22% $296,028 28.93% $470,043

FIRST TRUST DEEDLoan Amount $4,875,000Loan Type Proposed NewInterest Rate 6.57%Amortization 30 YearsLoan to Value 75%

LOCATION FINANCING


PRICING

& FIN

AN

CIAL A

NA

LYSIS

Loan information is time sensitive and subject tochange. Contact your local Marcus & Millichap CapitalCorporation representative.

5

Financial Overview (2006, Trail 12, 2008)

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ANNUALIZED OPERATING DATA

1153 Airport RoadJACKSONVILLE, FL 32218

Price $6,500,000Price Per Room $33,854Down Payment 25.0% $1,625,000Occupancy - 2006 44.9%Occupancy - Trailing 12 48.0%Occupancy - 2008 Projected 52.0%ADR - 2006 $41.48ADR - Trailing 12 $44.94ADR - 2008 Projected $52.00RevPAR -2006 $19.86RevPAR - Trailing 12 $22.94RevPAR - 2008 Projected $28.60Available Rentable Rooms 192Rooms Sold 32,925CAP Rate - 2006 7.40%CAP Rate - Trail 12 9.46%Cap rate - 2008 Projected 13.24%RRM - 2006 4.67RRM - Trail 12 4.04RRM - 2008 Projected 3.18Year Built/Renovated 1973 / 2006Lot Size 5.99Type of Ownership Fee Simple

TRAVELODGE INN & SUITES

JACKSONVILLE, FL

PROPERTY D

ESCRIPTION

Jacksonville International Airport

The Travelodge at Jacksonville International Airport in Jacksonville, Florida, presents an investor with an opportunity to acquire a turnkey hospitality property. The airport is conveniently located just 15 minutes north of the city.

Siituated only a ½ mile from the rapidly expanding Jacksonville International Airport (JAX), the Travelodge is priced well below replacement cost. It possesses immediate upside and has undergone over $1 million in capital improvements and benefits, from a highly visible location. A former independent hotel, this asset has just recently become associated with Travelodge, which will enable a new owner to enjoy increased profitability and property value.

The property is comprised of 192 recently renovated rooms (129 double/double, 41 king, 22 suites). Each room now features new carpeting, furniture, shower/bath, artwork, lighting, etc. Upgrades to the property also include newer roofs (4 years old), as well as approximately 110 newly installed room HVAC units.

Additionally, the possibility is being explored to subdivide approximately two acres of land, located along the northern boundary of the property, for use as airport parking or for other similar use.

The hotel caters to business, leisure and golf travelers. Local attractions include, great beaches and golf courses, topnotch medical facilities, multiple college universities, the Jacksonville Landing, the Jacksonville Zoo, the Jacksonville Jaguars, Amelia Island and fantastic shopping and dining choices.

INVESTMENT HIGHLIGHTS


PROPERTY D

ESCRIPTION

7

Turn Key Investment Opportunity

Extensive Capital Improvements

Large Parcel with ExpansionPossibilitiesCurrent Airport Expansion

Current Sea Port Expansion

Grow with Jacksonville!

Investment Overview

O5060020

PROPERTY D

ESCRIPTION

THE OFFERINGProperty Travelodge Inn & SuitesProperty Address 1153 Airport Road

Jacksonville, FL 32218Assessor's Parcel Number 0193480020

SITE DESCRIPTIONYear Built/Renovated 1973 / 2006Number of Rooms 192Number of Buildings 5Number of Floors 2Number of Meeting Rooms 1Lot Size 5.99Type of Ownership Fee SimpleParking 230Handicapped Parking 6Truck Parking 6Property Tier Budget/EconomyLocation Type AirportTransient Occupancy Tax Rate 6AAA Diamond Rating Not Rated

ROOM BREAKDOWNDouble 0Double Double 129Queen 0Queen Queen 0King 41King King 0Suites/Kitchenettes 22Total Number of Guest Rooms 192Jacuzzi Units (Included in Total) 1Physically Handicap (Included in Total) 4Smoking (Included in Total) 52Manager’s Unit 0

MEETING ROOMS1st Name Flight Room2nd Name N/A3rd Name N/A4th Name N/A

UTILITIESWater JEAPhone US Lec / AT&TElectric JEAGas TECO


PROPERTY D

ESCRIPTION

8

Property Summary

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PROPERTY D

ESCRIPTION

CONSTRUCTION/MECHANICALFoundation ConcreteFraming Wood StudExterior StuccoParking Surface AsphaltRoof Flat (Less Than 4 Yrs Old)HVAC 110 Units Less Than 1 Yr Old

INTERIOR ROOM DETAILHeating System Individual Room HVACCondition of Heating System 110 Units <1 Year OldCooling System Individual Room HVACCondition of Cooling System 110 Units <1 Year OldType of Bath/Shower Marble/TileCondition of Bath/Shower New Marble/TileCondition of Furniture <1 Year OldCondition of Window Coverings <1 Year OldRoom Floor Coverings CarpetCondition of Floor Coverings <1 Year OldWall Coverings Drywall w/ WallpaperCondition of Wall Coverings 110 Rooms <1 Year OldTelevisions 25"Condition of Televisions <5 Years Old

Phone System Mitel SX200Voice Mail N/AInternet Access High-Speed WiFi

FIRE/LIFE/SAFETYSecurity DVR Recorded Security System


PROPERTY D

ESCRIPTION

9

Property Summary

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PROPERTY D

ESCRIPTION

FRANCHISEFranchise Parent Wyndham Hotel GroupFranchise Affiliation TravelodgeFranchise ID 06503Start Date 4/1/2007Renewal Date 4/1/2010Application Fee $1,000Cancelable $1000 Per Room FeeFranchise Royalty 4.5%Franchise 2.5%Transfer Fee (Paid $5,000

TRANSPORTATIONHighway I-95 (0.25 mi)

I-295 / Route 9A (1.75 mi)

Airports Jacksonville International - JAX (1.5 mi)

FOOD & BEVERAGEName of Outlet Zaxby'sType of Outlet Full Service RestaurantLocation 1372 Airport RoadDistance ~0.5 miCapacityServes American

Name of Outlet Long Horn Steak HouseType of Outlet Full Service RestaurantLocation 1366 Airport RoadDistance ~0.5 miCapacityServes Steak

Name of Outlet Denny'sType of Outlet Full Service RestaurantLocation 14697 Duval RoadDistance ~0.10 miCapacityServes Wide Menu

Name of Outlet Ruby Tuesday'sType of Outlet Full Service RestaurantLocation 1360 Airport RoadDistance ~0.5 miCapacityServes American


PROPERTY D

ESCRIPTION

10

Property Summary

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PROPERTY D

ESCRIPTION

RENOVATIONS & IMPROVEMENTS192 Rooms Recently RenovatedLobby Fully RenovatedMeeting Room Fully RenovatedBreakfast Room Fully RenovatedSurveillance System Newly InstalledPool Fence Replaced Feb. 2007New 12' x 4' Full Color Dbl Sided LED Installed 2007Travelodge Franchise March 2007


PROPERTY D

ESCRIPTION

11

Property Summary

O5060020

Recently Renovated & Refurbished

WiFi Internet Access

Microwave

Refrigerator

Coffee Maker

Hairdryer

Iron & Ironing Board

25" Television w/ Cable & HBO

Marble & Tile Bath/Shower

In-Room Safe

Large Outdoor Pool

Fitness Center

Guest Laundry Facility

Complimentary Parking

Ample Bus, Truck, & RV Parking

Breakfast Area

Free High Speed WiFi Internet

Free Continental Breakfast

DVR Security Camera System

Lobby Business Kiosk

Airport Shuttle

Pets Welcome

Guest Laundry

'TripRewards' Rewards Program

PROPERTY D

ESCRIPTION


PROPERTY D

ESCRIPTION

12

COMMON AREA FEATURES

ROOM AMENITIES

Features & Amenities

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PROPERTY D

ESCRIPTION

13

Property Photos

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PROPERTY D

ESCRIPTION

14

Property Photos

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PROPERTY D

ESCRIPTION

15

Hotel Floor Plan

O5060020

LOCAL MAP

REGIONAL MAP


PROPERTY D

ESCRIPTION

16

Area Maps

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PROPERTY D

ESCRIPTION

17

Aerial Photo

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PROPERTY D

ESCRIPTION

18

2007 BTN Hotel Rankings

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PROPERTY D

ESCRIPTION

19

2007 BTN Hotel Ranking

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PROPERTY D

ESCRIPTION

20

2007 BTN Hotel Ranking

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PROPERTY D

ESCRIPTION

21

Jax Airport Expansion Plans

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PROPERTY D

ESCRIPTION

22


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PROPERTY D

ESCRIPTION

23


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JACKSONVILLE, FL

RECENT SA

LES

1)2)3)4)5)

Subject PropertyJacksonville Plaza Hotel & SuitesComfort SuitesBest WesternWingate InnResidence Inn by Marriott


RECENT SA

LES

25

Recent Sales Map

O5060020

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Subject JacksonvillePlazaHotel

&Suites

ComfortSuites

BestWestern

WingateInn

ResidenceInnby

Marriott

Avg $56,450


RECENT SA

LES

26

AVERAGE PRICE/ROOM

Price/Room

O5060020

1

2

TRAVELODGE INN & SUITES1153 Airport RoadJacksonville, FL 32218

JACKSONVILLE PLAZA HOTEL & SUITES14585 Duval RoadJacksonville, FL 32218

COMFORT SUITES1180 Airport RoadJacksonville, FL 32218

SUBJECT PROPERTY


RECENT SA

LES

27

Close of Escrow: 1/30/07 Sale Price: $3,600,000Total Rooms: 100 Price/Room: $36,000Year Built: 1997 CAP Rate:Occupancy: RRM:ADR: Rack Rate:RevPAR:


Recent Sales

O5060020

Close of Escrow: Sale Price: $6,500,000Total Rooms: 192 Price/Room: $33,854Year Built: 1973/2006 CAP Rate: 7.4%Occupancy: 44.9% RRM: 4.67ADR: $41.48 Rack Rate:RevPAR: $19.86

4

5

BEST WESTERN1170 Airport RoadJacksonville, FL 32218

WINGATE INN1200 Airport RoadJacksonville, FL 32218

RESIDENCE INN BY MARRIOTT1310 Airport RoadJacksonville, FL 32218

3

Close of Escrow: 11/22/05 Sale Price: $5,750,000Total Rooms: 112 Price/Room: $51,339Year Built/Renovated: 1986/1999 CAP Rate:Occupancy: RRM:ADR: Rack Rate:RevPAR:


RECENT SA

LES

Close of Escrow: 9/16/04 Sale Price: $4,400,000Total Rooms: 81 Price/Room: $54,321Year Built/Renovated: 2000/2005 CAP Rate:Occupancy: RRM:ADR: Rack Rate:RevPAR:

28


Recent Sales

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JACKSONVILLE, FL

COM

PETITIVE PROPERTIES


1)2)3)4)5)6)7)8)9)

10)11)

Subject PropertyBest WesternClarion HotelComfort SuitesDays InnFairfield InnHilton Garden InnRodeway InnWingate InnLa Quinta InnRed Roof InnBest Western Executive Inn

COM

PETITIVE PROPERTIES

30

Competitive Properties Map

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2

BEST WESTERN1170 Airport RoadJacksonville, FL 32218

CLARION HOTEL2101 Dixie Clipper DriveJacksonville, FL 32218

1

TRAVELODGE INN & SUITES1153 Airport RoadJacksonville, FL 32218


COM

PETITIVE PROPERTIES

31

Competitive Properties

SUBJECT PROPERTY

O5060020

Date Surveyed: 6/4/07 Meeting Rooms: 1Total Rooms 192 Year Built 1973/2006

Year Built/Renovated: 1973/2006 Occupancy: 44.9%AAA Rating: N/A ADR: $41.48

Rack Rate: N/A RevPAR: $19.86

Date Surveyed: Meeting Rooms:Total Rooms: 112 Meeting Space:Year Built/Renovated: 1986/1999 Occupancy:AAA Rating: 2 Diamonds ADR:Rack Rate: RevPAR:


5

4


COM

PETITIVE PROPERTIES

32

Date Surveyed: Meeting Rooms:Total Rooms: 64 Meeting Space:Year Built: 1989 Occupancy:AAA Rating: 2 Diamonds ADR:Rack Rate: RevPAR:


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3 COMFORT SUITES1180 Airport RoadJacksonville, FL 32218Date Surveyed: Meeting Rooms:Total Rooms: 59 Meeting Space:Year Built: 2000 Occupancy:AAA Rating: 3 Diamonds ADR:Rack Rate: RevPAR:

DAYS INN1181Airport RoadJacksonville, FL 32218

FAIRFIELD INN1300 Airport RoadJacksonville, FL 32218

8

RODEWAY INN1351 Airport RoadJacksonville, FL 32229

WINGATE INN1200 Airport RoadJacksonville, FL 32218

7



COM

PETITIVE PROPERTIES


33

6 HILTON GARDEN INN13503 Ranch RoadJacksonville, FL 32218



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11

RED ROOF INN14701 Duval RoadJacksonville, FL 32218

BEST WESTERN EXECUTIVE INN10888 Harts RoadJacksonville, FL 32218

10

Date Surveyed: Meeting Rooms:Total Rooms: 108 Meeting Space:Year Built: Occupancy:AAA Rating: 2 Diamonds ADR:Rack Rate: RevPAR:


COM

PETITIVE PROPERTIES


34

9 LA QUINTA INN812 Dunn AvenueJacksonville, FL 32218



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JACKSONVILLE, FL

MA

RKET OVERVIEW


MA

RKET OVERVIEW

36

MARKET HIGHLIGHTS

Attractive to expanding businesses

• The low cost of doing business continues to

lure relocating and expanding companies to

Jacksonville.

Strong population growth

• Population growth in the region averaged

two percent annually from 1990 to 2002.

Low cost of living• Housing costs in Jacksonville remain

inexpensive at 16 percent below the national

average.

GEOGRAPHY

Jacksonville is located in the northeast corner of Florida on the banks of the St. Johns River and adjacent to the

Atlantic Ocean. The Jacksonville MSA is comprised of Baker, Clay, Duval, Nassau and St. Johns counties,

covering a total of 2,636 square miles. Jacksonville is within the area referred to as the First Coast, which is

comprised of the five counties in the MSA plus Putnam County.

Jacksonville

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MA

RKET OVERVIEW

METRO

Of the five counties that comprise the Jacksonville

MSA, Duval is the largest with a population of 830,000,

followed by Clay with 163,000, St. Johns with 149,000,

Nassau with 63,000 and Baker with 24,000. From 1990

to 2000, St. Johns was the fastest-growing county,

growing at an average annual rate of 4.2 percent, and

it is expected to continue growing rapidly at an annual

rate of 3.8 percent over the next five years.

1990-1999 2000-2004 2005-2010*

0%

2%

4%

6%

Baker Clay Duval Nassau St. Johns

County Growth Patterns

* ForecastSource: AGS

37

Largest Cities: Jacksonville MSA

Jacksonville International Airport (JIA)

• More than five million passengers annually

• 160 million pounds of air cargo each year

• 200 daily flights

Port of Jacksonville (JAXPORT)

• Largest deep-water port in the south

Atlantic

• 14th-busiest in the continental United States

Six highways

• I-295, I-95, 1-10

• U.S. 1, U.S. 17, U.S. 90

Jacksonville is:

• 326 miles from Fort Lauderdale

• 350 miles from Miami

• 345 miles from Atlanta

• 383 miles from Charlotte

• 545 miles from New Orleans

Jacksonville 736,000 Fruit Cove 16,000

Lakeside 31,000 Atlantic 13,000

Palm 20,000

Jacksonville

INFRASTRUCTURE

Jacksonville’s central location and access to road, rail,

sea and air transportation have made it the intermodal

hub of the Southeast. Jacksonville recently

implemented a $2.2 billion investment program to

improve the city’s infrastructure, set aside land for

parks and open space, and new public facilities

downtown. Along with several U.S. highways, three

interstates serve Jacksonville, including I-95, which

runs north and south; I-10, which runs east and west;

and I-295, a beltway around the city.

Rail service along the coast is provided by Florida East

Coast Railroad with connecting service available

through CSX and Norfolk Southern.

Jacksonville’s deep-water port is the largest in the

south Atlantic. Containerized shipments are easily

handled and the facility is the leading U.S. port of

entry for foreign automobiles. The port also hosts a

major terminal for cruise ships.

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MA

RKET OVERVIEW

38

ECONOMY

While military bases, the commercial port and paper

mills have historically been the pillars of the region’s

economy, Jacksonville's economy is becoming more

diversified. The city has developed a large financial

services sector with such companies as the Bank of

America locating regional offices and support

operations in the area. The professional and business

services sector has risen in importance as Jacksonville

has become a regional center. In addition, Jacksonville

has an emerging industrial base in medical products

research and manufacturing. Three Fortune 500

companies are based in Jacksonville: Winn-Dixie,

Fidelity National Financial and CSX.

Rail service, JAXPORT and the region’s location will

continue to foster growth in the trade and

transportation sector, which remains the largest sector

of the economy. More than seven million tons of cargo

pass through the port annually, and the development

of cruise ship service will promote further expansion.

The military continues to be a large part of the

economy with two huge naval facilities and 56,000

people employed in the area, along with an annual

payroll of $1.6 billion and an estimated total economic

impact of $6 billion. Of the more than 4,100 naval

personnel who exit the military every year in

Jacksonville, over 80 percent stay because of affordable

housing and career opportunities.

Jacksonville

JAXPORT Annual Economic Impact

• 45,000 jobs

• $1.3 billion in wages

• $240 million in local purchases

• $260 million in customs revenuesSource: Marcus & Millichap Research Services

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MA

RKET OVERVIEW

39

LABOR

Jacksonville has a large and well-qualified work force bolstered by strong educational institutions and well-

trained personnel retiring locally from the military. The labor force grew by an average of 1.9 percent

annually over the past 10 years and now exceeds 1.2 million persons. Growth is expected to continue over the

next five years at an annual rate of 1.3 percent.

The largest employment sector is trade, transportation and utilities, which employs 22 percent of the work

force. The sector added 15,000 jobs over the past decade, growing at an average annual rate of 1.6 percent. The

next largest employment sector is professional and business services with 15 percent of the work force, which

grew at an average 4.8 percent rate over the past decade and added 34,000 jobs, the most of any sector. The

smaller construction sector grew at a 4.5 percent average annual rate over the period, adding a total of 14,000

jobs. Jacksonville has a comparatively large financial services sector now totaling 58,000 workers, which

accounts for 10 percent of employment. The sector grew at an average annual rate of 1.9 percent over the past

10 years.

Over the next five years, job growth is expected to be fastest in the construction industry, which is projected

to grow at five percent annually while adding 11,100 jobs. The larger education and health services sector will

add the most jobs, a total of 11,600 over the period, while growing at a 3.2 percent annual rate. The leisure and

hospitality sector will also grow at a strong rate of 3.1 percent annually, while adding 9,400 jobs. Growth in

the professional and business services sector is expected to slow to two percent per year, while the

transportation, trade and utilities sector will grow at an annual rate of 0.8 percent.

Jacksonville

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EMPLOYERS

It is estimated that 16 out of every 100 Jacksonville

area residents are connected with the Navy, either

through past or present employment or as a member

of a Navy family. Only Norfolk, Va., and San Diego,

Calif., have higher concentrations of navy personnel.

The area’s Navy bases employ more than 56,000 and

have a combined annual payroll of $1.6 billion. A large

share of personnel exiting the Navy each year choose

to remain in the region. This provides a steady stream

of skilled workers as many are trained in electronics,

technical maintenance, repair and management.

Jacksonville is growing as a regional center for

financial and business services. Bank of America

employs 6,000 locally while Citibank employs 3,400 in

its credit card service operation in the region. The low

cost of doing business, at 96 percent of the U.S.

average, is attractive to companies seeking an

affordable locale to house their back-office operations.

Jacksonville’s port, railheads and highways combine to

help make Jacksonville a premier center for

transportation and trade services. In addition to trade,

cruise service recently commenced at JAXPORT. Both

Celebrity Cruises and Carnival Cruise Lines are now

offering service. Cruise service alone is expected to

generate 715 new jobs and pump more than $36

million annually into the local economy by 2005.

Five of the 10 largest Jacksonville employers are in

sectors serving Jacksonville's growing population,

including health care providers, retailers and the

public schools system.


Top 10 Employers

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Duvall County Public Schools 15,700

Mayport Naval Station 15,400

Jacksonville Naval Air Station 14,500

Winn-Dixie Stores 8,300

Blue Cross and Blue Shield 7,850

Publix Supermarkets 6,770

Bank of America Corporation 6,000

Baptist Health System 5,725

Mayo Clinic 5,100

CSX Corporation 4,100Source: Marcus & Millichap Research Services

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Share of Total EmploymentMSA Employment: 625,000

Information 2%Other Services 4%Manufacturing 6%Construction 8%Financial Activities 10%Leisure & Hospitality 10%Government 12%

Education & Health Services 12%Professional & Business Services 14%Trade Transportation & Utilities 22%Sources: Bureau of Labor Statistics, Economy.com

Jacksonville

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MA

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DEMOGRAPHICS

While military bases, the commercial port and paper

mills have historically been the pillars of the region’s

economy, Jacksonville's economy is becoming more

diversified. The city has developed a large financial

services sector with such companies as the Bank of

America locating regional offices and support

operations in the area. The professional and business

services sector has risen in importance as Jacksonville

has become a regional center. In addition, Jacksonville

has an emerging industrial base in medical products

research and manufacturing. Three Fortune 500

companies are based in Jacksonville: Winn-Dixie,

Fidelity National Financial and CSX.

Rail service, JAXPORT and the region’s location will

continue to foster growth in the trade and

transportation sector, which remains the largest sector

of the economy. More than 7 million tons of cargo pass

through the port annually, and the development of

cruise ship service will promote further expansion.

The military continues to be a large part of the

economy with two huge naval facilities and 56,000

people employed in the area, along with an annual

payroll of $1.6 billion and an estimated total economic

impact of $6 billion. Of the more than 4,100 naval

personnel who exit the military every year in

Jacksonville, over 80 percent stay because of affordable

housing and career opportunities.

Jacksonville

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MA

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QUALITY OF LIFE

Jacksonville offers many recreational events and

cultural opportunities. The area is home to the

Professional Golfers Association, the World Golf

Village and the PGA Hall of Fame. The Association of

Tennis Professionals is also based in the area.

Jacksonville has a minor league baseball team, a

professional hockey team and an Arena Football

League team. The city’s largest sporting attraction is

the Jacksonville Jaguars of the National Football

League.

Jacksonville’s beach communities are comprised of

Atlantic Beach, Neptune Beach and Jacksonville Beach,

and community beaches dot the shoreline for 50 miles.

The symphony, theater, ballet and numerous arts

festivals, such as the Annual Jazz Festival, anchor a

packed social and cultural calendar.

The cost of living in Jacksonville is among the most

affordable in the country and lower than most Florida

markets of comparable size. The area’s cost of living is

7.7 percent below the national average. Neither the

state of Florida nor the city of Jacksonville has a

personal income tax. Housing is very affordable, at 16

percent below the national average.

The Duval County school district is the nation’s 16th

largest with 150 public schools, a student population

of 133,000 and 7,850 teachers. The district has a $1.4

billion budget and is growing by 2,000 students

annually. The area also has 15 colleges and universities

dedicated to serving the educational and training

needs of its residents and business community.

42

Jacksonville

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JACKSONVILLE, FL

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1 Miles: 3 Miles: 5 Miles:Population

1990 Population 371 9,545 27,2722000 Population 372 11,252 33,4922006 Population 372 12,408 37,2982011 Population 373 13,362 40,421

Households1990 Households 122 3,327 10,0012000 Households 144 3,950 12,2642006 Households 144 4,356 13,6502011 Households 144 4,692 14,8012006 Average Household Size 2.12 2.77 2.67

Employment2006 Daytime Population 814 5,751 14,179

Summary Housing Information

1990 Median Housing Value $73,395 $58,580 $55,9312000 Median Housing Value $110,799 $84,720 $80,246

2000 Owner Occupied Housing Units 82.0% 70.8% 65.8%2000 Renter Occupied Housing Units 12.2% 23.4% 27.2%2000 Vacant 5.81% 5.86% 6.96%



2006 Households by Income$ 0 - $ 14,999 14.2% 12.7% 13.5%$ 15,000 - $24,999 9.9% 11.5% 11.0%$ 25,000 - $34,999 11.2% 11.9% 12.5%$ 35,000 - $49,999 16.1% 20.1% 19.4%$ 50,000 - $74,999 20.3% 22.6% 22.6%$ 75,000 - $99,999 13.3% 11.2% 10.9%$100,000 - $124,999 8.3% 5.5% 5.5%$125,000 - $149,999 2.9% 2.0% 2.2%$150,000 - $200,000 1.4% 0.9% 1.1%$200,000 to $249,999 0.8% 0.3% 0.3%$250,000 + 1.7% 1.3% 1.1%

2006 IncomeMedian Household Income $48,530 $45,654 $45,063Per Capita Income $20,185 $19,731 $19,572Average Household Income $58,228 $53,840 $52,582

Demographic data © 2006 by Experian/Applied Geographic Solutions.This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed orimplied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify theinformation and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark ofMarcus & Millichap Real Estate Investment Services, Inc. © 2007 Marcus & Millichap

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Demographic Report

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Geography: 5 Miles

PopulationIn 2006, the population in your selected geography is 37,298. The population has changed by 11.36% since 2000. It isestimated that the population in your area will be 40,421 five years from now, which represents a change of 8.37% fromthe current year. The current population is 48.23% male and 51.77% female. The median age of the population in yourarea is 35.4, compare this to the US average which is 36.5. The population density in your area is 474.89 people persquare mile.

HouseholdsThere are currently 13,650 households in your selected geography. The number of households has changed by 11.30%since 2000. It is estimated that the number of households in your area will be 14,801 five years from now, whichrepresents a change of 8.43% from the current year. The average household size in your area is 2.67 persons.

Income

In 2006, the median household income for your selected geography is $45,063, compare this to the US average which iscurrently $48,271. The median household income for your area has changed by 11.58% since 2000. It is estimated thatthe median household income in your area will be $48,628 five years from now, which represents a change of 7.91%from the current year.

The current year per capita income in your area is $19,572, compare this to the US average, which is $24,529. The

Race & Ethnicity

The current year racial makeup of your selected area is as follows: 57.92% White, 39.49% Black, 0.30% Native Americanand 0.78% Asian/Pacific Islander. Compare these to US averages which are: 75.86% White, 12.07% Black, 0.71% NativeAmerican and 4.51% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 2.38% of the currentyear population in your selected area. Compare this to the US average of 14.94%.

HousingThe median housing value in your area was $80,246 in 2000, compare this to the US average of $115,194 for the sameyear. In 2000, there were 8,679 owner occupied housing units in your area and there were 3,585 renter occupiedhousing units in your area. The median rent at the time was $501.

EmploymentIn 2006, there are 14,179 employees in your selected area, this is also known as the daytime population. The 2000Census revealed that 54.9% of employees are employed in white-collar occupations in this geography, and 45.1% areemployed in blue-collar occupations. In 2006, unemployment in this area is 6.40%. In 2000, the median time traveled towork was 23.6 minutes.

Demographic data © 2003 by Experian/Applied Geographic Solutions.


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Summary Report

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Number of people living in a given area per square mile.



DEM

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Theme Low HighHigh 166 or moreAbove Average 105 166Average 66 105Below Average 42 66Low less than 42

Population Density

Population Density

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The number of people employed in a given area per square mile.



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Theme Low HighHigh 72 or moreAbove Average 45 72Average 29 45Below Average 18 29Low less than 18

Employment Density

Employment Density

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Average income of all the people 15 years and older occupying a single housing unit.



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Theme Low HighHigh $127,258 or moreAbove Average $80,168 $127,258Average $50,502 $80,168Below Average $31,815 $50,502Low less than $31,815

Average Household Income

Average Household Income

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OFFERING MEMORANDUM

JACKSONVILLE, FL

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