Regional Geography & Environment: Sea Islands Location: The city is primarily situated on Port Royal Island, surrounded by a marshy estuary and tidal waters. Water-Dominant Landscape: Beaufort County consists of more water than land; approximately 51% of its 468,000 acres are open waters, sounds, and marshes. Economic & Social Infrastructure: Military Presence: A major driver of the local economy, the region hosts several key installations: Marine Corps Air Station (MCAS) Beaufort Marine Corps Recruit Depot Parris Island U.S. Naval Hospital Beaufort Tourism & Hospitality: The area attracts over two million annual visitors. Popular attractions include Hunting Island State Park, South Carolina’s most visited state park, and local festivals like the Beaufort Water Festival. Demographics: As of 2023, the city population is approximately 13,700. The broader county is one of the fastest growing in the South, largely due to development near Hilton Head Island and Bluffton. Strong Market: Average Net Worth (Age 75+): $2,662,035 Average Household Income (Age 75+): $92,335 Average Home Value: $501,987 PROPERTY HIGHLIGHTS List Price: $4,000,000 Gross Revenue: $2,215,380 (Actual) Occupancy: 90% (Actual) Forecast NOI: $498,460 (normalizing expenses to 75% of Gross Revenue) CoStar Southeast Sold Comps: $292/SF; subject property at $114.62/SF CoStar Average National CAP & Sold Comps: 6.5% & $307/SF 2025 Weitz Replacement Cost (Construction cost only): $353/SF FINANCIAL HIGHLIGHTS (5-Year Hold) • Property Qualifies for a SBA 504 Loan: 25-year term, 85% LTC, and 5.722% interest • Using 10.0% vacancy Years 1 thru 10 • Revenue growth 5% per year • IRR: 70.04% • Cash on Cash: 34.89% • Acquisition CAP Rate: 12.46% • Debt Service Coverage Ratio: 1.95 • Projected Sales Year 5: $7.952 million • Sales proceeds after expenses: $4.66 million Ernie Anaya SC License #: 93244 Bull Realty SC License #: 13327