12109 Canton Ave, Hudson, FL 34669

SUBSIDIARY OF INVESTMENT GRADE PARENT | Lennox Industries, Inc. is the largest division of investment grade rated Lennox International, Inc. (NYSE: LII | S&P: BBB), the 4th largest HVAC company in the country (by sales) which generated more than $5.3 billion in revenue in FY2024 – a 7.2% increase from FY2023 and up more than 47% since 2020. LII is listed among the Fortune 1000, Forbes Global 2000 and is a component of the S&P 500.

2019 CONSTRUCTION WITH MAJOR 2022 RENOVATION | The Property is an attractive metal facility still in its infancy with more than $180,000 invested in 2022 as part of tenant improvements prior to Lennox’s lease commencement. Work included a new truck well, loading dock, HVAC and electrical systems, framing, insulation and ceiling and interior painting.

PASSIVE LEASE WITH MINIMAL LANDLORD FINANCIAL RESPONSIBILITY | Lennox is operating under passive lease structure where they are responsible, either directly or via landlord reimbursement, for all operating expenses related to the Property and the premises, including taxes, insurance, common area maintenance and a management fee. Landlord’s financial responsibility is limited to roof and structure and capital expenditures, substantially mitigated given the recent 2019 construction and 2022 renovation.

3.00%/4.00% ANNUAL INCREASES WITH PROTECTED FAIR MARKET OPTIONS | Lennox’s lease features annual rental increases of 3.00% through the base term. Two, five-year option periods immediately follow that will reset to fair market value with 4.00% annual increases thereafter. Starting rent in the options is insulated from any potential downside risk as in no event shall rent be less than 104% of rent in the immediately preceding lease year.

ADDITIONAL REVENUE STREAM | The initial TIs were amortized over the base term and new ownership will benefit from collecting an additional $24,960 annually through April 2029.

RAPIDLY EXPANDING MARKET | Pasco County is the 11th-most populous county in Florida and among the state’s fastest growing with nearly 600,000 residents today – a more than 15% increase since 2020. Population is expected to increase an additional 25% by 2045 and could surpass one million by 2050, with the workforce more than doubling over current levels as people continue to flock to the area. The Pasco County industrial submarket is the 5th-largest of Tampa’s 12 submarkets with more than 17.6 million square feet of inventory valued at more than $2.6 billion.

HIGHLY SOUGHT AFTER STATE OF FLORIDA INVESTMENT OPPORTUNITY | Florida is the #1 economy in the U.S. (as ranked by CNBC & U.S. World News Report), the #1 state for annual income migration and the fastest-growing state in the country; ±900 residents are added per day – the equivalent of adding a city the size of Orlando every year. It is recognized for its business-friendly environment and lack of a state income tax. Florida’s commercial real estate market is experiencing a surge in investment, driven by the strong economy and population growth, plus the state’s favorable tax policies and continued net migration. This boom is particularly evident in retail and industrial sectors with high occupancy rates and increased demand for properties in urban and suburban areas.

IDEAL 1031 EXCHANGE OPPORTUNITY | An industry-leading tenant operating under a relatively new lease in a newer facility, passive investment with landlord favorable lease structure, contractual rent growth and strategic positioning in the Tampa market create an ideal opportunity for trade buyers.