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2816 MACARTHUR ROAD WHITEHALL, PA La-Z-Boy TABLE of CONTENTS

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2816 MACARTHUR ROAD WHITEHALL, PA La-Z-Boy TABLE of CONTENTS 2816 MACARTHUR ROAD WHITEHALL, PA La-Z-Boy TABLE OF CONTENTS Section 1: Offering Summary Section 3: Location Overview Property Analysis.......................................................5 Area Demographics.................................................12 Lead Agents: Investment Overview & Highlights................................6 Economy and Travel.................................................13 Derrick Dougherty First Vice President Financing Details........................................................7 Economic Drivers.....................................................14 Philadelphia, PA Lease Abstract............................................................8 Regional Map..........................................................15 215.531.7026 [email protected] Competition Map.......................................................9 License: PA RS305854 Section 2: Tenant Overview Tenant Description....................................................10 Steven Garthwaite National Retail Group In The News............................................................11 Philadelphia, PA 215.531.7025 [email protected] NON-ENDORSEMENT PA RS332182 AND DISCLAIMER NOTICE NON-ENDORSEMENTS Scott Woodard Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing National Retail Group package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or Philadelphia, PA endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing PA RS329242 of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE Mark Krantz DETAILS. National Retail Group Philadelphia, PA PA RS336064 | NJ 1537786 DISCLAIMER 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 Financing Contact: 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 Stehen Filippo or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the M&M Capital Corporation property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's Director-Capital Markets New York, NY or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial 212.430.5288 condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The [email protected] 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 Our Locations: 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. Marcus & Millichap is a Philadelphia, PA King Of Prussia, PA 2005 Market Street #1510 200 N. Warner Road service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved. Philadelphia, PA 19103 King Of Prussia, PA 19406 P: 215.531.7000 P: 215.531.7000 New York, NY 260 Madison Avenue Marcus & Millichap Real Estate Investment Services of Seattle, Inc. Broker of Record: Sean Beuche 5th Floor License: RB062197C License: PA RM424190 New York, NY 10016 Whitehall Mall Lehigh Valley Mall Whitehall Square Macarthur Towne Centre Whitehall-Coplay Middle School (1,036 Total Enrolled) Subject MACARTHURProperty RD (32,396 VPD) Lehigh Valley Mall Whitehall Mall US HWY 22 (80,528 VPD) Macarthur Towne Centre MACARTHUR RD (32,396 VPD) Whitehall Square Subject Property MACARTHUR RD (32,396 VPD) Whitehall-Coplay Middle School (1,036 Total Enrolled) US HWY 22 (80,528 VPD) Whitehall-Coplay School District (4,293 Total Enrolled) La-Z-Boy PROPERTY OVERVIEW Lease Summary Rent Schedule Tenant LaZboy Term Annual Rent % Increase Guarantor Corporate Years 1-5 $434,520.00 $ Lease Type NNN Years 6-10 $456,246.00 5% Roof and Structure Landlord Option Terms List Price: Base Lease Term 10 Years Years 11-15 $479,058.30 5% $6,207,428 Lease Commencement 10/30/2016 Years 16-20 $503,011.22 5% Lease/ Rent Expiration 10/31/2026 Years 21-25 $528,161.78 5% Rent Increases 5% In Year 6 and Options Years 26-30 $554,569.86 5% % Cap Rate: 7.00% Lease Type NNN Lot Size: 1.42 Acres 2816 Macarthur Rd Whitehall, PA DD&P | 5 La-Z-Boy OVERVIEW & HIGHLIGHTS Marcus and Millichap is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in a NNN leased, corporate guaranteed, La-Z-Boy investment property located in Whitehall, PA. La-Z-Boy is an American furniture manufacturer based in Monroe, Michigan that makes home furniture, recliners, sofas and employs more than 11,000 people. The tenant has 7 years remaining in their initial term with 4 (5-year) option periods to extend. The lease features a 5% rental increase in October 2022 and during each option period, steadily growing NOI and hedging against inflation. The lease is NNN with few landlord responsibilities making it an ideal, management free investment opportunity for a local or out of state investor. La-Z-Boy is strategically located on MacArthur Road which serves as the primary retail thoroughfare in the immediate trade area averaging 33,990 vehicles passing by daily. The asset is positioned adjacent to the MacArthur Town Center whose anchor tenants, Lowe’s, ALDI, Chick-fil-A, and McDonalds promote crossover traffic to the site. Additionally, the site sits 2 miles north from The Lehigh Valley Mall, (1,180,840 SF) a popular luxury mall anchored by Macy’s, Apple, Pottery Barn, Boscov’s, and JCPenney, further increasing consumer draw to the trade area. Moreover, the asset is directly next to the Whitehall-Coplay School District Campus, home to the local Middle and High School, (approximately 2,000 students) providing a direct consumer base from which to draw. The 3-mile trade area is supported by a dense population of over 102,577 residents with an average household income of $62,479. HIGHLIGHTS: • La-Z-Boy (NYSE: LZB) has over 350 locations and a market cap of $1.56 billion • Rare 5% increases throughout the initial term and option periods, generating healthy NOI growth • Tenant Renewal Options: 4 Periods of 5 Years, Each Bringing the Potential Lease Term to 30 Years • Ideal, management-free investment for an out-of-state, passive investor • Situated in the highly coveted Whitehall submarket in the path of growth. Located on MacArthur Road with immediate access to the Lehigh Valley Thruway, providing access from all around Allentown • MacArthur Road serves as the primary retail thoroughfare in the immediate trade area with nearby national/credit tenants including GIANT, Burlington Coat Factory, DICK’S, Walmart, Wawa, Burger King, and Wendy’s • Positive Real Estate Fundamentals | Located Less Than 3-Miles from Downtown Allentown • Over the past 5 years, La-Z-Boy has seen a sales increase of $310 million, an operating income increase of over $60 million and a 65.6% increase in share price 6 | La-Z-Boy La-Z-Boy Director - Capital Markets (212) 430-5288 FINANCING DETAILS STEPHEN FILIPPO [email protected] Marcus & Millichap Capital Corporation 260 Madison Avenue, 5th Floor New York, NY 10016 Financing Summary Returns Year 1 Price $6,207,429 CAP Rate 7.00% Down Payment (25%) $1,551,857 Cash-on-Cash 9.39% Loan Amount $4,655,571 Total Return 16.73% Interest Rate 3.80% Debt Coverage Ratio 1.50 Amortization 25 Years Term 2026 Operating Data Income Year 1 Net Operating Income $434,520 Debt Service ($288,752) Net Cash Flow After Debt Service 9.39% $145,768 Principal Reduction $113,808 Total Return 16.73% $259,577 DD&P | 7 La-Z-Boy LEASE ABSTRACT Tenant La-Z-Boy, Whitehall, PA Guarantor Corporate Square Footage 22,411 SF Commencement Date 10/30/2016 Expiration Date 10/31/2026 Initial Term 10 Year Base Term Option Notice Tenant must exercise option (6) months prior to Lease expiration Estoppel/SNDA Tenant to provide certificate upon written request of Landlord Taxes Tenant is responsible for Real Estate taxes Insurance Tenant is responsible for Insurance expenses CAM Tenant is responsible for CAM expenses Utilities Tenant is responsible for Utility expenses Landlord is responsible for repair & replacement of the Premises' structure; Landlord is responsible for the replacement of the Roof & Structure roof, Tenant is responsible for the maintenance of roof
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