tcfBank Ground Lease NNN 6501 Richfield Parkway, Richfield, MN 55432

IREA tcf

Actual Photo IREA

INVESTMENT REAL ESTATE ASSOCIATES

OFFICE 16501 Ventura Blvd. Suite 448 Encino, CA 91436 Phone: 818.386.6888 Fax: 818.386.2805 www.irea.com

INVESTMENT ADVISORS

Chris Thompson Senior Partner (818) 522-4792 [email protected] 01205918

Actual Photo Bank tcf Contents

Highlights 4-5

Property Summary 6-7

Deposits & Tenant Profile 8-9

Context Maps 10-11 Bank Aerial Map 12-13 tcf Financials 14-15 Ground Lease NNN 6501 Richfield Parkway, Richfield, MN 55432 Demographics 16-17

Actual Photo TEAM & TABLE OF CONTENTS | 3 Overview Property Type: Single Tenant Ground Lease Address: 6501 Richfield Parkway,

Richfield, MN 55423 Bank Tenants: TCF Bank Rentable Area: 5,288 Sq Ft | Land Area: 1.01 Acres tcf Years Remaining: 9+ Years Left on Base Term w/ Options Built: 2007

TCF Bank - IREA Highlights

Prime Retail Location Strategically located in Super Target & Home Depot anchored shopping center and located within two miles of Mall of America and IKEA. Also, directly adjacent to /St. Paul Int. Airport.

Deposits at this location put this site in the top 16% of all TCF Bank locations. TCF Bank is a Wayzata, -based national bank holding company. As of March 31, 2018, TCF Bank had $23.4 billion in total assets and 318 bank branches reaching as far west as .

Affluent Demographics The area has a five-mile population of 322,000 and an average household income of over $101,000 within five-miles.

High Traffic Location Impressive traffic counts in excess of 65,000 cars per day along Highway 77 interchange.

Rental Increases & Options 10% rent escalations every five-years, next bump scheduled for Nov. 2022. Four 5-year options with 10% rental bumps.

Ground Lease NNN No landlord responsibilities; long term ground lease.

PROPERTY HIGHLIGHTS | 5 Ground Lease NNN With 9+ Years Remaining & 10% Rental Escalations Every 5-years + Option Periods.

TCF Bank - IREA The Offering

This is a single tenant (ground lease NNN) TCF Bank located within the Minneapolis MSA. This TCF Bank is ideally located on a 1.01 acre (43,995 SF)

lot as an out-parcel to a Super Target and Home Bank Depot anchored shopping center, and adjacent to Minneapolis- Saint Paul Int. Airport. The lease features 10% rental escalations every five-years with the next escalation scheduled for November 2022. Additionally, there are four five-year options tcf following base lease, which expires in October 2027 (9+ years remaining). With well above average deposits for a bank branch, this is a proven location for TCF Bank.

Located within the Cedar Point Commons Shopping Center, a 350,000 square foot retail center, the subject property sits within Minneapolis’ premier retail shopping hub! Constant traffic is abundant along Highway 77 (65,000 CPD) as the Mall of America is located approximately two miles south of Cedar Point Commons along Highway 77. Additionally, there is an IKEA adjacent to the Mall of America as well as many other national retailers in the immediate area. The subject property is located in a dense area with over 322,000 people living within five miles radius of the property. There are high barriers to entry in the area as the land directly across Highway 77 is used for the Minneapolis/St. Paul International Airport.

TCF Bank is a publicly traded company on the New York Stock Exchange (TCB), with a market capitalization of $2 billion. TCF Bank is an investment grade rated company with a Standard & Poor’s rating of BBB-.

PROPERTY SUMMARY | 7 FDIC Reports for TCF Bank

The subject property’s deposits are in the TCF Bank as a whole had more than a $305 top 16% of all TCF Bank locations in the million increase in deposits from 2016 to way of deposits with $67,447,000, which 2017 as shown in the ‘Grand Totals’ rows is an almost $3 million increase in deposits adjacent. over 2016. See below rows.

FDIC Deposit Report 2016

FDIC Deposit Report 2017

TCF Bank - IREA STOCK PRICE PERFORMANCE (Dollars) Stock Price* Dividends*

$35 $1.50 Stock Split 9/3/04

30 1.25

25 1.00

20 Stock Split 11/28/97 Tenant/ Corporate Profile

0.75 TCF is a Wayzata, Minnesota-based national bank 15 holding company. As of March 31, 2018, TCF had $23.4 billion in total assets and 318 bank branches Stock Split 11/30/95 in , Minnesota, , , ,0.50 10 Arizona and providing retail and commercial banking services. TCF, through its subsidiaries, also conducts commercial leasing and0.25 5 equipment finance business in all 50 states and commercial inventory finance business in all 50 states and Canada. 6-86 12-87 12-8912-91 12-93112-95 2-97 12-99112-0112-03 2-05 12-07112-0912-11 2-13 12-15 12-17 www.tcfbank.com *Sto ck split adjusted TCF is a publicly traded company. The common For more historical information on TCF’s stock price and dividend, visit http://ir.tcfbank.com. stock of TCF Financial Corporation is listed on the New York Stock Exchange under the symbol TCF. As of December 31, 2017, TCF had approximately 171.7 million shares of common stock outstanding.

CREDITCredit RATINGS Ratings Last Review Last Review Standard & Poor’s October 2017 Moody’s January 2018

Outlook Stable Outlook Stable TCF Financial Corporation: TCF National Bank: Long-term Counterparty BBB- Long-term Issuer Baa2 Short-term Counterparty A-3 Long-term Deposits A2 Short-term Deposits Prime-1 TCF National Bank: Long-term Counterparty BBB Preferred Stock Ba1 Short-term Counterparty A-2 Subordinated Debt Baa2 Preferred Stock BB- Subordinated Debt BBB-

TENANT PROFILE | 9

A-3 TCF Bank-IREA Site Aerial View Site Plan View

494 FWY Walmart Supercenter DICK’S SportingGoods Big box stores located (down 494 FWY) east, just offmap Sam’s Club Cedar Point ShoppingCenter Best Buy REI 149k CPD Subject Property Location .

86k CPD 77 FWY 77 FWY 65k CPD Water Park ofAmerica IKEA Twin Cities Mall ofAmerica (largest mallinU.S.) International Airport MSP 13 Miles/

15 Min. Commute

20 Min. Commute

15 Miles/

Cedar Point Shopping Center Subject Property Location

MSP International 494 FWY Airport

CONTEXT MAPS | 11 77 FWY

Cedar Point Shopping Center Subject Property Location

TCF Bank - IREA MSP International Airport

77 FWY 65k CPD

E 66th St 14k14k CPD CPD

AERIAL MAP | 13 TCF BankTCF BankFinancials Notes

FinancialFinancial Indicators Indicators PropertyProperty Abstract Abstract PurchasePurchase Price: Price: $3,150,000$3,150,000 LeaseLease Begin: Begin: 10/16/0710/16/07 DownDown Payment: Payment: 100%100% $3,150,000 $3,150,000 LeaseLease Expire: Expire: 10/31/2710/31/27 (9+(9+ Yrs. Yrs. Remaining) Remaining) Approx.Approx. Lot Lot Size: Size: 43,99543,995 (1.01(1.01 Acres) Acres) CAP CAPRate: Rate: 5.76%5.76% NetNet Square Square Feet: Feet: 5,2885,288 CashCash on Cash on Cash Return: Return: 5.76%5.76% YearYear Built: Built: 20072007 LeaseLease Type: Type: GroundGround Lease Lease NNN NNN

AnnualAnnual Rents Rents CapCap Rate RateOptionsOptions NotesNotes & Highlights& Highlights $181,500$181,500 11/1/201711/1/2017to 10/31/2022to 10/31/2022 5.76%5.76% PropertyProperty to beto bedelivered delivered free free of ofdebt. debt. $199,650$199,650 11/1/202211/1/2022to 10/31/2027to 10/31/2027 6.34%6.34% FourFour 5-year 5-year options options following following base base lease. lease. $219,615$219,615 11/1/202711/1/2027to 10/31/2032to 10/31/2032 6.97%6.97% 1 1 10%10% rental rental escalations escalations every every 5-years. 5-years. $241,577$241,577 11/1/203211/1/2032to 10/31/2037to 10/31/2037 7.67%7.67% 2 2 $265,734$265,734 11/1/203711/1/2037to 10/31/2042to 10/31/2042 8.44%8.44% 3 3 $292,308$292,308 11/1/204211/1/2042to 10/31/2047to 10/31/2047 9.28%9.28% 4 4 Information deemed reliable, but not guaranteed.

InformationInformation deemed deemed reliable, reliable, but but not not guaranteed. guaranteed.

Property Address | 6501 Richfield Parkway, Richfield, MN 55432

TCF Bank - IREA Cash onReturn: CAP Rate: Down Payment: Purchase Price: TCF Bank $292,308 $265,734 $199,650 $241,577 $181,500 $219,615 Annual Rents 11/1/2042 11/1/2032 11/1/2037 11/1/2022 11/1/2027 11/1/2017 Financial Indicators to to to to to to 10/31/2047 10/31/2042 10/31/2037 10/31/2032 10/31/2022 10/31/2027 0%$3,150,000 100% a aeOptions Cap Rate $3,150,000 8.44% 6.34% 6.97% 9.28% 5.76% 7.67% 5.76% 5.76% Option 4 Option 2 Option 3 Option 1 Located inSuperTarget/HomeDepotAnchoredCenter Deposits at thislocation putthis site inthetop 16%of High TrafficCountLocationw/ExcellentExposure Two MilesNorthofMallAmercia&WaterPark Four 5-YearOptionsw/10%RentalEscalations Highlights Free Standing/Newer2007Construction 10% RentalEscalationsEverty5-Years Directly AdjacenttoMSPInt.Airport Superior BankBranchDeposits Investment Highlights Premier RetailLocation all TCF Banklocations. Affluent Demographics FINANCIALS |15

tcfBank Affluent Demographics: Five mile population tcf Bank By The Numbers (5, 3, & 1 Mile Radius) exceeding 322K Total Population and an average household income of 2017 5 Mile: 322,449 | ‘17 3 Mile: 105,880 | ‘17 1 Mile: 9,267 over $101K. 2022* 5 Mile: 336,272 | ‘22 3 Mile: 109,864 | ‘22 1 Mile: 9,626

Total Average Household by Income

2017 5 Mile: $90,121 | ‘17 3 Mile: $89,604 | ‘17 1 Mile: $83,792 2022* 5 Mile: $100,829 | ‘22 3 Mile: $100,488 | ‘22 1 Mile: Demographic $93,991 Total Median Household by Income

2017 5 Mile: $62,520 | ‘17 3 Mile: $67,026 | ‘17 1 Mile: $68,679 2022* 5 Mile: $69,685 | ‘22 3 Mile: $75,136 | ‘22 1 Mile: $76,343

Total Businesses & Employees

Within 1 Mile Radius 208 & 2,684 Within 3 Mile Radius 3,795 & 64,789 Within 5 Mile Radius 13,131 & 221,484

*Projected 2022

TCF Bank - IREA 5/9/2018 tcf Bank By The Numbers (5Business Mile Analyst Radius/ Subject Property)

KEY FACTS EDUCATION

9,267 37.1 Population 11% Median Age No High 34% School 2.7 Some College $68,679 Diploma 18% 37% Average Median Household High School Bachelor's/Grad/Prof Household Size Income Graduate Degree

BUSINESS EMPLOYMENT

62% White Collar 18% 6.1% Blue Collar 208 2,684 Unemployment 20% Rate Total Businesses Total Employees Services

INCOME Households By Income The largest group: $100,000 - $149,999 (20.4%) The smallest group: $200,000+ (4.0%) Indicator Value Difference <$15,000 5.6% -3.1% $15,000 - $24,999 9.1% +0.7% $25,000 - $34,999 8.1% +0.2% $35,000 - $49,999 11.3% -0.4% $50,000 - $74,999 19.6% +2.9% $75,000 - $99,999 16.4% +3.6% $100,000 - $149,999 20.4% +3.7% $150,000 - $199,999 5.5% -2.4% $62,520 $38,375 $110,032 $200,000+ 4.0% -5.4%

Median Household Per Capita Income Median Net Worth Income Bars show deviation from Hennepin County Avg Household Size Median Household Income https://bao.arcgis.com/esriBAO/index.html?cacheBust=1# 1/4 Sources: IREA; ESRI Information Services; U.S. Census Bureau of Labor Statistics; Wikipedia; Fortune/Money.CNN.com; Forbes; Business Insider;Moody's; Zillow; Trulia; City of Glendale; Los Angeles County; Los Angeles Times; REIS; California Association of Realtors; DataQuick; Curbed LA; Glendale News-Press; San Fernando Valley Business Journal; Glendale Unified School District; Glendale Community College; ThinkGlendale.com; Los Angeles Times. tcf Bank - IREA DEMOGRAPHICS | 17 THE INFORMATION PROVIDED HEREIN IS FROM SOURCES WE BELIEVE ARE RELIABLE. WHILE WE DO NOT DOUBT ITS ACCURACY, WE HAVE NOT VERIFIED IT AND MAKE NO REPRESENTATIONS, GUARANTEES OR WARRANTIES ABOUT IT. IREA

INVESTMENT REAL ESTATE ASSOCIATES Bank

OFFICE 16501 Ventura Blvd. Suite 448 Encino, CA 91436 Phone: 818.386.6888 Fax: 818.386.2805 tcf www.irea.com

INVESTMENT ADVISORS

Chris Thompson Senior Partner (818) 522-4792 [email protected] 01205918

TCF Bank - IREA