Offered By: 4061 S. 28TH STREET David Hesano of CBRE, Inc. GRAND RAPIDS, 49512 +1 248 351 2014 [email protected] AFFILIATED BUSINESS DISCLOSURE or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your CBRE, Inc. operates within a global family of companies with many subsidiaries and/ receipt of this Memorandum or use of its contents; and you are to rely solely on or related entities (each an “Affiliate”) engaging in a broad range of commercial your investigations and inspections of the Property in evaluating a possible purchase real estate businesses including, but not limited to, brokerage services, property and of the real property. The Owner expressly reserved the right, at its sole discretion, facilities management, valuation, investment fund management and development. At to reject any or all expressions of interest or offers to purchase the Property, and/ times different Affiliates may represent various clients with competing interests in the or to terminate discussions with any entity at any time with or without notice which same transaction. For example, this Memorandum may be received by our Affiliates, may arise as a result of review of this Memorandum. The Owner shall have no legal including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates commitment or obligation to any entity reviewing this Memorandum or making an may express an interest in the property described in this Memorandum (the “Property”) offer to purchase the Property unless and until written agreement(s) for the purchase may submit an offer to purchase the Property and may be the successful bidder for the of the Property have been fully executed, delivered and approved by the Owner and Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. any conditions to the Owner’s obligations therein have been satisfied or waived. By nor any involved Affiliate will have any obligation to disclose to you the involvement receipt of this Memorandum, you agree that this Memorandum and its contents are of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, of a confidential nature, that you will hold and treat it in the strictest confidence and Inc. will act in the best interest of the client(s) it represents in the transaction described that you will not disclose this Memorandum or any of its contents to any other entity in this Memorandum and will not act in concert with or otherwise conduct its business without the prior written authorization of the Owner or CBRE, Inc. You also agree that in a way that benefits any Affiliate to the detriment of any other offeror or prospective you will not use this Memorandum or any of its contents in any manner detrimental offeror, but rather will conduct its business in a manner consistent with the law and any to the interest of the Owner or CBRE, Inc. If after reviewing this Memorandum, you fiduciary duties owed to the client(s) it represents in the transaction described in this have no further interest in purchasing the Property, kindly return this Memorandum Memorandum. to CBRE, Inc.

CONFIDENTIALITY AGREEMENT DISCLAIMER This is a confidential Memorandum intended solely for your limited use and benefit This Memorandum contains select information pertaining to the Property and the in determining whether you desire to express further interest in the acquisition of the Property. This Memorandum contains selected information pertaining to the Property Owner, and does not purport to be all-inclusive or contain all or part of the information and does not purport to be a representation of the state of affairs of the Property or which prospective investors may require to evaluate a purchase of the Property. The the owner of the Property (the “Owner”), to be all-inclusive or to contain all or part of information contained in this Memorandum has been obtained from sources believed the information which prospective investors may require to evaluate a purchase of real to be reliable, but has not been verified for accuracy, completeness, or fitness for property. All financial projections and information are provided for general reference any particular purpose. All information is presented “as is” without representation or purposes only and are based on assumptions relating to the general economy, warranty of any kind. Such information includes estimates based on forward-looking market conditions, competition and other factors beyond the control of the Owner assumptions relating to the general economy, market conditions, competition and and CBRE, Inc. Therefore, all projections, assumptions and other information provided other factors which are subject to uncertainty and may not represent the current or and made herein are subject to material variation. All references to acreages, square future performance of the Property. All references to acreages, square footages, footages, and other measurements are approximations. Additional information and an and other measurements are approximations. This Memorandum describes certain opportunity to inspect the Property will be made available to interested and qualified documents, including leases and other materials, in summary form. These summaries prospective purchasers. In this Memorandum, certain documents, including leases and may not be complete nor accurate descriptions of the full agreements referenced. other materials, are described in summary form. These summaries do not purport to Additional information and an opportunity to inspect the Property may be made be complete nor necessarily accurate descriptions of the full agreements referenced. available to qualified prospective purchasers. You are advised to independently verify Interested parties are expected to review all such summaries and other documents of the accuracy and completeness of all summaries and information contained herein, whatever nature independently and not rely on the contents of this Memorandum in to consult with independent legal and financial advisors, and carefully investigate the any manner. Neither the Owner or CBRE, Inc, nor any of their respective directors, economics of this transaction and Property’s suitability for your needs. ANY RELIANCE officers, Affiliates or representatives make any representation or warranty, expressed ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.

2 Table of Contents 04 06 14 19 EXECUTIVE SUMMARY LOCATION & PROPERTY TENANT OVERVIEW FINANCIAL ANALYSIS OVERVIEW 21 26 COMPARABLES MARKET & AREA OVERVIEW

3 I. Executive Summary

4 The Offering:

CBRE Southfield is pleased to offer for sale the fee simple interest in a new 6,408 square foot (SF) Buddy’s Pizza on 1.74 Acres in Grand Rapids, MI. Upon closing, Buddy’s Pizza will be signing a new twenty (20)-year Absolute Net lease starting at $192,240 in annual rent with four (4), five (5)-year renewal options and ten percent (10%) rental escalations every five (5) years through the initial term and renewal options. The building was built in 2003, was formerly occupied by Carrabba’s Italian Grill and underwent extensive interior and exterior renovations in 2018 and early 2019. The restaurant opened in the Spring of this year and this unit is outperforming sales projections. Additionally, online consumer reviews have been excellent.

Founded over 72 years ago and creating the original “Detroit-Style” pizza, Buddy’s Pizza is one of the premier, nationally recognized, full-service pizzerias and has over thirteen (13) locations in and Grand Rapids. The chain was recently acquired by the restaurant investment firm CapitalSpring, which has invested over $1.3 Billion in over fifty (50) restaurant brands. Buddy’s Pizza has won many national awards and is considered one of the top pizzerias in the nation. Buddy’s is currently in expansion mode with six new units projected to open in the next year. Property Facts: The asset is being offered free and clear of existing financing.

4061 28th Street SE PROPERTY ADDRESS Investment Highlights: Grand Rapids, MI 49512 1) 20-Year Absolute Net Sale-Leaseback. YEAR BUILT 2003 (Renovated in 2018-2019) 2) Significant Rent Bumps (10% every 5 years). TOTAL BUILDING AREA 6,408 SF 3) Nationally Acclaimed Regional Pizzeria Chain. Ingress/Egress on 28th Street and a Dedicated ACCESS 4) Strong and Experienced Operator (CapitalSpring, $1.3B+ Invested in Turn Lane 50+ Brands). LAND AREA 1.74 Acres 5) Offered Free and Clear of Debt.

Executive Summary 5 II. Location & Property Overview

6 Location Overview

The subject property is located on 28th St. approximately nine miles southeast of Downtown Grand Rapids, MI. This located is within a very dense retail corridor that runs through the southeast side of Grand Rapids, between Kalamazoo Ave. to the west and Cascade Rd. to the east, and is home to a substantial number of national retail tenants including:

- Walgreens - Arby’s - Panera Bread - Advance Auto Parts - Meijer - Qdoba Mexican Eats - Aspen Dental - Noodles & Company - ALDI - Sprint - Belle Tire - IHOP - Target - Jimmy John’s - Texas Roadhouse - LongHorn Steakhouse - Home Depot - Starbucks - Olive Garden - Tropical Smoothie Café - Lowe’s - Chick-fil-A - Denny’s - Red Roof Inn - Costco - Jared - Red Lobster - Staples - DICK’s Sporting Goods - Fidelity Investments - Michael’s - Bob Evans - Buffalo Wild Wings - Art Van PureSleep - PetSmart - PNC Bank - Wendy’s - Potbelly Sandwich Shop - Office Max - Crowne Plaza - Tim Hortons - Five Guys - Hobby Lobby - Walmart Supercenter - Discount Tire - Dave & Busters - Ethan Allen - Leo’s Coney Island - McDonald’s - Chipotle Mexican Grill - Bath & Body Works - Huntington Bank - O’Reilly Auto Parts - Men’s Wearhouse - Comfort Inn - Chemical Bank - AutoZone Auto Parts - Outback Steakhouse - Steak N’ Shake - Culver’s - Taco Bell - The Vitamin Shoppe - Sherwin-Williams Paint Store - Chase Bank - KFC - Trader Joe’s - Hilton Double Tree - Bank of America - Long John Silver’s - Fifth Third Bank - Bed Bath & Beyond - Comerica Bank - Burger King - The Honey Baked Ham Company - Applebee’s Grill & Bar - Dunkin’ Donuts

As well as national tenants in both and the Shops at Centerpoint immediately north of the subject property: Location Highlights: - Macy’s - Best Buy - H&M - Nordstrom Rack »» Centrally located in a highly dense retail corridor of Grand Rapids, MI. - Barnes & Noble - Dunham’s Sports - Celebration Cinema - DSW Designer Shoe Warehouse »» Subject Property has frontage on major road in Grand Rapids. - On the Border - Old Navy - Kohl’s - Planet Fitness »» Proximity to Interstates, State Highways, and Major Roads.

»» Located immediately south of two regional malls/shopping centers.

»» Solid traffic counts near property (28,000+ on 28th St.; 13,000+ on arisP Ave.).

Location & Property Overview 7 Location Aerial Map National Tenants within 0.5 Miles

NATIONAL TENANTS WITHIN 0.5 MILES E PARIS AVE SE

S. 28th ST SE S. 28th ST SE E PARIS AVE SE

© 2019 © 2019 CBRE Limited. Data © TeleAtlas, Google, AerialExpress, DigitalGlobe, Landiscor, USGS, i-cubed. The information contained herein (the “Information”) is intended for informational purposes only and should not be relied upon by recipients hereof. Although the Information is believed to be correct, its accuracy, correctness or completeness cannot be guaranteed and has not been verified by either CBRE Limited or any of its affiliates (CBRE Limited and its affiliates are collectively referred to herein as “CBRE”). CBRE neither guarantees, warrants nor assumes any responsibility or liability of any kind with respect to the accuracy, correctness, completeness, or suitability of, or decisions based upon or in connection with, the Information. The recipient of the Information should take such steps as the recipient may deem appropriate with respect to using the Information. The Information may change and any property described herein may be withdrawn from the market at any time without notice or obligation of any kind on the part of CBRE. The Information is protected by copyright and shall be fully enforced.

Layout ID:L03 MapId:6047634 Location & Property Overview 8 Location Aerial Map

Tenants Located between Kalamazoo Ave and Cascade Rd

E BELTLINE AVE SE

CASCADE RD SE

The Shops at Centerpoint

Woodland Mall

28th ST SE 28th ST SE 28th ST SE KALAMAZOO AVE SE BRETON RD SE PATTERSON AVE SE

BROADMOOR AVE SE

GERALD R. FORD INTERNATIONAL AIRPORT

© 2019 CBRE Limited. Data © TeleAtlas, Google, AerialExpress, DigitalGlobe, Landiscor, USGS, i-cubed. The information contained herein (the “Information”) is intended for informational purposes only and should not be relied upon by recipients hereof. Although the Information is believed to be correct, its accuracy, correctness or completeness cannot be guaranteed and has not been verified by either CBRE Limited or any of its affiliates (CBRE Limited and its affiliates are collectively referred to herein as “CBRE”). CBRE neither guarantees, warrants nor assumes any responsibility or liability of any kind with respect to the accuracy, correctness, completeness, or suitability of, or decisions based upon or in connection with, the Information. The recipient of the Information should take such steps as the recipient may deem appropriate with respect to using the Information. The Information may change and any property described herein may be withdrawn from the market at any time without notice or obligation of any kind on the part of CBRE. The Information is protected by copyright andLshallocationbe fully enforced. & Property Overview 9 Layout ID:L15 MapId:6048249 Location Reference Map

Distance from Buddy’s Pizza (4061 S. 28th Street, Grand Rapids, MI) to:

© 2019 CBRE Limited. Data © TeleAtlas, Google, AerialExpress, DigitalGlobe, Landiscor, USGS, i-cubed. The information contained herein (the “Information”) is intended for informational purposes only and should not be relied upon by recipients hereof. Although the Information is believed to be correct, its accuracy, correctness or completeness cannot be guaranteed and has not been verified by either CBRE Limited or any of its affiliates (CBRE Limited and its affiliates are collectively referred to herein as “CBRE”). CBRE neither guarantees, warrants nor assumes any responsibility or liability of any kind with respect to the accuracy, correctness, completeness, or suitability of, or decisions based upon or in connection with, the Information. The recipient of the Information should take such steps as the recipient may deem appropriate with respect to using the Information. The Information may change and any property described herein may be withdrawn from the market at any time without notice or obligation of any kind on the part of CBRE. The Information is protected by copyright and shall be fully enforced. Layout ID:L03 MapId:6116562 Detroit, MI Chicago, IL Lansing, MI Ann Arbor, MI Kalamazoo, MI Battle Creek, MI 150 Miles 185 Miles 60 Miles 124 Miles 53 Miles 57 Miles

Location & Property Overview 10 Property Photos Exterior

Location & Property Overview 11 Property Photos Interior

Location & Property Overview 12 Buddy’s Pizza - ALTA Survey

Location & Property Overview 13 III. Tenant Overview

14 Lease Abstract PROPERTY ADDRESS 4061 28th Street SE, Grand Rapids, Michigan 49512

TENANT Buddy's Rendezvous-Pizzeria, LLC

GUARANTOR Buddy's Holding Company, LLC

SQAURE FOOTAGE (SF) 6,408 SF

LAND ACREAGE (AC) 1.74 AC

LEASE TYPE Absolute Net.

RENT COMMENCEMENT DATE Upon Closing.

LEASE TERM Twenty (20) Years from the date of sale.

YEAR ONE RENT $192,240.00

RENTAL ESCALATIONS Ten percent (10%) every five (5) years.

RENEWAL OPTIONS Four (4), five (5)-year options.

OPTION TO PURCHASE None.

EARLY TERMINATION OPTION None.

RIGHT OF FIRST REFUSAL None.

OPERATING COSTS One hundred percent (100%) paid for by Tenant. REAL ESTATE TAXES Tenant pays for all Real Property Taxes directly to the taxing authority. INSURANCE Tenant procures and maintains all insurance policies per the requirements of the lease. UTILITIES Tenant pays directly for all use of utilities during the term, including water, gas, and electricity. COMMON AREA MAINTENANCE Tenant pays directly for all expenses associated with operating the Leased Premises. LANDLORD MAINTENANCE & REPLACEMENT None. ESTOPPEL To be provided to Landlord as defined in the Lease.

Tenant Overview 15 Timeline & Corporate History

1946 1970 2019 & Beyond Buddy’s introduces a unique, William “Billy” and Shirlee Buddy’s establishes new square, deep dish Sicilian-style Jacobs purchase Buddy’s. 1980 location in Grand Rapids and pizza recipe. The legend of Detroit’s The same year, Buddy’s Buddy’s serves the 2013 & 2014 has three new locations coming Original Square Pizza is born. wins the first ever pizza Republican National Two new Buddy’s locations are soon in Plymouth, Woodhaven, contest against Cloverleaf. Convention. established in Shelby and Novi. and Downtown Detroit.

1930s Owned by August “Gus” Guerra, Buddy’s Pizza first opened its doors as a “blind pig” on the corner of Conant and Six Mile Phase I. Brand Development Phase II. Brand Nourishment Phase III. Growth Roads in the heart of Detroit, quickly capturing the hearts of locals.

1953 1979 2003 Jimmy Bonacorse and Jimmy Buddy’s adds a second Buddy’s is recognized as one Valenti purchase Buddy’s and restaurant in Warren. of the “Nation’s Five Best Pizza its celebrated pizza recipe. Places” by the Food Network™. 2017 & 2018 Two new locations are established in Ann Arbor and the Detroit Zoo. Buddy’s receives investment from CapitalSpring.

Tenant Overview 16 Awards & Testimonials

“Detroit-style pizza is sure to further the endless, divisive “Buddy’s Pizza invented and perfected Detroit’s signature discussion about who does pizza best” - Wall Street Journal square pizza style.” - Business Insider, March 2015

Buddy’s Pizza crust is one of the best in America.” - GQ Magazine, June 2009 “If you love pizza, you need to try Detroit-style, and Buddy’s is the place to do it.” - USA Today, February 2016 #15 of 25 Best Pizzas in America

“Today, it carries on the legacy by capturing the hearts “I could rhapsodize about the pure perfection that is and taste buds of Detroiters and travelers alike.” Buddy’s pillowy yet crackly crust with its ever so slightly - Paula Deen Magazine, April 2014 fried edges and almost golden center.” - The Oprah Magazine, July 2009

“The Detroit staple has been around for 70 years, and you bet that next time I visit the Motor City, Buddy’s will be ‘Nation’s Five Best Pizza Places’ - Food Network, 2003 my first stop.” -Oprah.com, August 2016

‘One of the 25 Best Pizza Spots in the U.S.’ ‘One of the Five Great Pizza Places in the Country’ - Food & Wine Magazine, 2011 - Parade Magazine, 2012

‘Destination Pizza and Ten Pizzas Worth a Trip’ - Zagat, 2013 #5 City in America for Pizza

#2 Pizza Location in America #4 of 38 Essential U.S. Pizzerias

#19 of 101 Best Pizzas in America #1 Pizza in Michigan

33 Best Pizza Shops in America

Tenant Overview 17 Detroit-Style Pizza Nationwide

In recent years, Detroit-style pizza has shown significant growth outside of the metro Detroit area. Buddy’s nationally recognized name is well-positioned to succeed in markets already exposed to Detroit-style pizza: • With increased exposure and strong acceptance, more consumers are requesting Detroit-style pizza. • Detroit-style pizza has recently garnered several high-profile accolades in national and international competitions including the International Pizza Expo and the American Pizza Championship. • USA Today, The Wall Street Journal, Yahoo! News, CBS, and many others have praised Detroit-style pizza as a food trend that is quickly garnering traction in consumer’s palates and preferences. • Digiorno Pizza has recently added a “Detroit-Style” frozen pizza, creating additional exposure within the frozen foods section of everyday grocers.

Notable Restaurants Inspired by Detroit-Style Pizza Timeline:

2015 - Blue Pan opens in Denver, Colorado

2015 - Descendant opens in Toronto, Canada

2015 - Via 313 opens its first of 3 locations in Austin, Texas

2016 - Emmy Squared opens in Williamsburg, New York

Tenant Overview 18 IV. Financial Analysis

19 Financial Analysis BUDDY’S PIZZA YEAR ONE CASH FLOW ESTIMATES ASSUMES ALL CASH TRANSACTION

Price $3,075,000 Rentable Square Feet 6,408 Price per Square Foot $480 CAP Rate 6.25%

Year One Monthly Per SF 8/2019 - 7/2020 Base Rent

Buddy's Pizza Closing - Twenty (20) years after $192,240.00 $16,020.00 $30.00 Twenty (20) years.

Total Base Rent $192,240.00 $16,020.00 $30.00 Scheduled Base Rental Revenue $192,240.00 $16,020.00 $30.00 Expense Reimbursement Revenue - Tenant to Procure and Pay Direct Insurance ------Common Area Maintenance ------Real Estate Taxes ------Total Expense Reimbursement Revenue ------Gross Potential Income $192,240.00 $16,020.00 $30.00 Effective Gross Income $192,240.00 $16,020.00 $30.00 Operating Expense Estimates - Tenant to Procure and Pay Direct Insurance ------Common Area Maintenance ------Real Estate Taxes ------Total Common Area Expenses ------Management Fee ------Replacement Reserve ------Total Expenses ------Net Operating Income $192,240.00 $16,020.00 $30.00

Financial Analysis 20 V. Comparables

21 Sales Comparables

BUDDY’S PIZZA BUILDING TERM BUILDING NAME SALE YEAR BUILT SIZE SALE DATE SALES PRICE PRICE/SF CAP RATE NOI NOI/SF REMAINING COMMENTS ADDRESS COMPARABLES (SF) (YEARS)

This is a new 6,408 SF Buddy's Pizza on 1.74 acres which will be sold to an investor as a Sale- Leaseback. The property is subject to a twenty (20)- Buddy's Pizza, year, Absolute Net lease. Rental escalations of ten 2003, Grand Rapids, MI Subject percent (10%) will occur every five (5) years and Renovated 6,408 $3,075,000 $479.87 6.25% $192,240 $30.00 20.0 4 0 6 1 2 8 t h S t . S E Property will continue through four (4) five (5)-year option in 2018 Grand Rapids, Michigan periods. Buddy's Pizza is an attractive property investment as a celebrated, high-volume, full- service pizzeria with strong unit economics and a scalable business model. Marcus & Millichap is pleased to present the exclusive listing for a Buddy’s Pizza located in Farmington Hills, Michigan. The property consists of approximately 7,367 SF of building space and Buddy's Pizza, Farmington, MI is situated on approximately 1.37 acres of land. 1 3 1 6 4 6 N o r t h w e s t e r n H w y 1964 7,367 On Market $3,220,000 $437.08 6.25% $201,250 $27.32 20.0 The property is subject to a twenty (20)-year Triple- Farmington, Michigan Net (NNN) lease. The base rent will be $201,250 with rental escalations of 10% every 5 years. The increases will continue through the four, 5-year tenant renewal options. Brand New 20-Year Triple Net (NNN) Sale-Leaseback. Marcus & Millichap is pleased to present the exclusive listing for a Buddy’s Pizza located in Warren, Michigan. The property consists of approximately 5,826 SF of building space and is situated on approximately 2.20 acres of land. The Buddy's Pizza, Warren, MI property is subject to a twenty (20)-year Triple- 2 8100 Old 13 Mile Rd. 1969 5,826 On Market $2,714,000 $465.84 6.25% $169,625 $29.12 20.0 Net (NNN) lease. The base rent will be $169,625 Warren, Michigan with rental escalations of ten percent (10%) every five (5) years. The increases will continue through the four (4), five (5)-year tenant renewal options. Brand New twenty (20)-Year Triple Net (NNN) Sale- Leaseback. On 4/29/2016, the 7,762 SF restaurant located at 12383 James Street was sold for $3,259,000 or $419.87 per SF. The property was sold for On the Border Mexican asking price and had been on the market since Grill & Cantina January, 2016. The current tenant, On The Border 3 2016 7,762 4/29/2016 $3,255,000 $419.35 6.76% $220,038 $28.35 20.0 1 2 3 8 3 J a m e s S t . restaurant, is signed on a 20-year lease, with Holland, Michigan 1% annual bumps. The transaction was sold at a confirmed 6.75% cap rate. The transaction price was calculated by using the cap rate and confirmed NOI of $220,000.

Sales Comparables 22 On 3/15/2016 the 4,445 SF retail building located at 202 19th Avenue SE in Wilmar, MN sold for $2,500,000. The single story restaurant sits on 3.28 acres in Kandiyohi County. The property was one hundred percent (100%) occupied at the time of the sale by Culver's. The property was on the Culver's market for about seven (7) months with an initial 4 202 19th Ave SE 2001 4,445 3/15/2016 $2,500,000 $562.43 6.60% $165,000 $37.12 20.0 sale price of $2,500,000. The property was under Willmar, Minnesota contract for about thirty (30) days. The buyer purchased the property as an investment. Culver's did a sale leaseback and signed a twenty (20)-year absolute net lease at the time of the sale. The 2016 net operating income is $165,000, yielding an actual cap rate of 6.6%. This 5,400 SF restaurant building sold on 7/14/2015 for $2,109,375 per public record. A sale condition of sale leaseback was reported by the listing broker in the sale listing. The lease will call for rental increases every five (5) years equal to the smallest of 5% or the change in CPI over the previous five years. Twisted Rooster will have Twisted Rooster six, 5-year tenant renewal options, allowing for 45 5 9 7 2 9 B e l l e v i l l e R d . 2005 5,400 7/14/2015 $2,109,375 $390.63 6.40% $135,000 $25.00 15.0 years of total term. The lease will be guaranteed Belleville, Michigan by Meritage Hospitality Group." These lease terms could not be confirmed at the time of research; however, the manager on duty at the Twisted Rooster confirmed the business is still located here. The NOI is $135,000 and the cap rate is 6.4%. The buyer financed the transaction with a $1,200,000 loan. On 9/8/2015, the 5,000 SF Famous Dave's Bar-B- Que located at 36601 Warren Road in Westland, MI sold for $3,067,500. The single story freestanding restaurant features 95 parking spaces and 288' of frontage of Warren Road. The property was On the Border Mexican 100% occupied at the time of the sale by Famous Grill & Cantina 6 2016 6,025 7/12/2016 $3,165,000 $525.31 6.80% $215,220 $35.72 15.0 Dave's Bar-B-Que. The property was on the market 3 4 9 6 5 W a r r e n R d . for about five months with an initial sale price of Westland, Michigan $3,150,000.Upon the close of escrow, Famous Dave's signed a brand new 20-year NNN lease with four five year options. The 2015 net operating income is $219,939.75, yielding an actual cap rate of 7.17%.

Sales Comparables 23 This property spent 289 days on the market, was newly constructed and Tenant had a 15-year Triple Net (NNN) Ground Lease commenced in 2018 at B J ' s R e s t a u r a n t & B r e w h o u s e the time of sale. The property is situated along a 7 1 9 4 7 0 H a g g e r t y R d . 2018 7,567 12/28/2018 $4,200,000 $555.04 6.43% $270,060 $35.69 15.0 major road within a substantial restaurant corridor Livonia, Michigan neighboring J. Alexander's, Romano's Macaroni Grill, Bahama Breeze and Andiamo Livonia in the immediate area. Leased and operated by Applebee's (Schostak family Restaurants; 65-unit operator) on an Applebee's Absolute Net basis with a 20-year initial term and 8 1310 S. Centerville Rd. 2000 4,291 On Market $2,698,900 $628.97 6.75% $182,176 $42.46 10.0 four, 5-year renewal options remaining. Rent Sturgis, MI during the term increased by 2% annually during the first three years and had a 10% bump in July 2018 and has another 10% bump in July 2023. Property is located in proximity to Westland Mall, regional mall anchored by sears, JC Penney and Applebee's Kohl's. The lease is Absolute Net and with 10% rent 9 3 6 4 7 5 W a r r e n R d . 1992 5,508 5/1/2018 $3,419,000 $620.73 6.75% $230,783 $41.90 10.0 bumps in 2018 and 2023 and four, 5-year renewal Westland, MI options with 10% bumps in rent at the beginning of each renewal term. This property sold at 97% of the asking price.

Comparable Averages $479.38 6.50% $196,599 $31.19 17.9

Sales Comparables 24 Lease Comparables

BUDDY’S PIZZA BUILDING ANNUAL LEASE TENANT ADDRESS SIZE RENT PSF BASIS DATE ESCALATIONS TERM (YEARS) RENT COMPARABLES (SF)

Buddy's Rendezvous- 4061 28th Street SE 6,408 $192,240 $30.00 Absolute Net Upon Closing 10% per 5 years 20.00 Pizzeria, LLC

1 Outback Steakhouse 3650 28th St. 6,678 $166,349 $24.91 NNN Apr-17 1% Annual 15.00

2 Fajita Republic 2183 NE Betline Ave. 6,150 $131,979 $21.46 NNN Oct-13 Flat 5.00

3 Meritage 1 Carlton Ave. SE 3,300 $119,988 $36.36 NNN Jan-16 Flat 10.00

4 On the Border 12383 James St. 6,334 $219,980 $34.73 NNN Apr-16 Unknown 20.00

Rental Averages 5,616 $159,574 $29.37

LEASE COMPARABLES 25 VI. Market & Area Overview

26 Market & Area Overview

City of Grand Rapids: Grand Rapids is the second largest city in the State of Michigan and the largest in what is considered , with an area of 45.31 square miles (sq. mi.) a 2019 estimated population of 202,326 in 77,636 households. Grand Rapids is the county seat for Kent County and is home to an economically diverse community defined by health care, information technology, automotive, aviation, and consumer goods manufacturing industries among others. Grand Rapids is also home to five (5) of the world’s largest furniture manufacturers and is nicknamed “Furniture City” in addition to “River City” for its location on the Grand River.

Grand Rapids-Wyoming Metropolitan Statistical Data: The Grand Rapids-Wyoming Metropolitan Statistical Area is an area of four counties in Western Michigan (Barry, Kent, Montcalm and Ottawa Counties) anchored by TOP 10 EMPLOYERS IN GRAND RAPIDS/WEST MICHIGAN the cities of Grand Rapids and Wyoming with a 2019 population estimate of 1,066,195. The region is noted for its western edge on the shoreline of Lake EMPLOYER NUMBER OF EMPLOYEES INDUSTRY Michigan as its beaches are popular tourist destinations, notably in Grand Haven, General Medical & Surgical Spectrum Health (HQ) 25,000 Holland, Muskegon and Saugatuck, and fishing, kayaking, and canoeing are Hospitals additionally popular activities in the region given its proximity to the Grand River. It is home to several major cultural and entertainment landmarks and attractions Meijer (HQ) 10,340 Supermarket Retail & Distribution such as the Frederik Meijer Gardens & Sculpture Park, Michigan’s Adventure Theme Park, Grand Rapids Art Museum, and the DeVos Place Convention Center. Mercy General Health Partners General Medical & Surgical 6,200 Fishing, kayaking, and canoeing are popular activities in the region given its (Kent & Muskegon) Hospitals proximity to the Grand River. Amway Corporation (HQ) 4,000 Consumer Goods Manufacturing County Income Growth Patterns: Glass Product Manufacturing for Gentex Corporation (HQ) 3,900 Automobile Industry AREA DEMOGRAPHICS

AREA AVERAGES RADIUS FROM SUBJECT PROPERTY Perrigo Company 3,800 Pharmaceutical Manufacturing 1mi. 3mi. 5mi. Herman Miller, Inc. (HQ) 3,621 Office Furniture Manufacturing POPULATION 8,848 54,262 162,374

HOUSEHOLDS 4,336 22,406 61,556 Steelcase, Inc. (HQ) 3,500 Office Furniture Manufacturing

HOUSEHOLD INCOME $54,097 $86,331 $85,654 Grand Valley State University 3,306 Higher Education (HQ) PER CAPITA INCOME $27, 0 6 0 $36,721 $33,240 Plastic Manufacturing for Lacks Enterprises, Inc. (HQ) 2,800 Automobile Industry

Market & Area Overview 27 DAVID HESANO 2000 Town Center, Suite 2200 CONTACTS: Southfield, MI 48075 First Vice President +1 248 353 5400 +1 248 351 2014 www.cbre.com/detroit [email protected]

© 2019 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. Any projections, opinions, or estimates are subject to uncertainty. The information may not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited.