CAPITAL MARKETS | NET LEASE INVESTMENT | OFFERING MEMORANDUM

PETSUITES OF AMERICA 45237 GRAND RIVER AVENUE NOVI, PETSUITES | 45237 GRAND RIVER AVE, NOVI, MI EXECUTIVE SUMMARY OFFERING MEMORANDUM

EXECUTIVE SUMMARY

The Offering Investment Highlights

Qualified investors are extended the opportunity to acquire a 100.0% fee simple interest in Original 20 Year Lease a new 20 year absolute net lease PetSuites located in the core of a dominant trade area of • 20 year original absolute net lease with contractual CPI rental increase every 5 years. Novi, Michigan. Construction began in 2020 with rent commencement in late 2020. High Growth Sector Fully guaranteed by NVA Holdings, Inc., the original lease term is twenty (20) years with • According to Forbes, there are now more pet-owning households than there are those no termination rights and CPI rental increases each 5 years. The lease has no landlord with children: 84.6 million compared to 52.8 million. responsibilities; the offering is a completely passive real estate investment. • In 2018, US spending on pets reached $72.1 billion, up 8.1% from 2016. • Animal adoption through Q2 in 2020 is at record highs. The site is strategically positioned along the major five-lane road, Grand River Avenue. Grand River Ave (over 25,000 VPD in front of site) extends from ’s central business Service-Based Retail district northwestward and runs parallel to I-96, providing services to those commuting in • Completely resistant to e-commerce, PetSuites is entirely service-based and not and out of Detroit proper. The site is located across the street from the Suburban Collection dependent upon the sale of any pet supplies or soft goods. Showplace (host of the Michigan State Fair), Ascension Providence Park Hospital campus, About National Veterinary Associates (NVA) and a retail trade area anchored by Kroger, Home Depot, and Staples. • NVA was founded in 1996 and now includes over 670 veterinary hospitals and over 70 pet resorts in in 43 states. NVA employs over 2,500 veterinarians and over 4000 staff Novi, MI is a continuously growing suburban city, offering key services and support to members. In June 2019, JAB Holding Co. agreed to buy a majority stake in NVA. the greater Detroit MSA. It maintains an excellent housing inventory, acclaimed public schools, and a healthy retail trade area that provides goods and services for the 61,000 Prime Real Estate people that live within the city limits. Positioned strategically just northwest of Detroit, MI, • The site offers visibility and immediate access to Grand River Avenue which carries over with convenient access via I-96, and about 25 miles northeast of Ann Arbor’s city center. 25,000 vehicles per day, and across the street from Suburban Collection Showplace (Michigan’s choice conference and exposition center), and Hyatt Place Detroit/Novi. Desirable Demographics Sales Terms • Over 61,000 people live within Novi, MI city limits. Novi is an affluent community that has an average household income of over $115,000. The property is being offered on an “as-is” basis with ownership making no representations or warranties with respect to the accuracy or completeness of the offering memorandum Detroit, MI MSA or any and all documents delivered to any acquisition prospect for the purpose of due • The Detroit, MI MSA is the 14th largest in the United States with a population of diligence. approximately 4,319,620.

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TENANT PROFILE

PetSuites of America, a growing national pet resort, spa, and daycare chain, specializes in the boarding and grooming of dogs and cats. They currently have 70 locations in the United States, which include sites in Florida, Georgia, Indiana, Kentucky, Louisiana, North Carolina, Ohio, South Carolina, Texas, and Virginia. PetSuites has spent over 15 years developing and perfecting an enriching and healthy environment for beloved family pets. Their daycare provides two different programs for dogs, DayBoarding and DayPlay. DayBoarding is designed for more “people oriented” dogs, while DayPlay is great for social dogs who love to play with other canines. The daycare at PetSuites has a 4-level “kitty condo” which is perfect for climbing, jumping, and napping. All daycare services include feeding and individual play times. Their boarding services are all inclusive resorts, providing your dog or cat with a full day of meals, playtimes, and naps. They even provide your pets with housekeeping services ensuring a clean and sanitary environment. PetSuites premium spa packages are a great way for your furry friend to get pampered and leave looking and feeling their very best. Every PetSuites bath includes a nail trim, ear cleaning, and a full-service bath with premium shampoo. Add-on services such as de-shedding, dental treatments, and more are available upon request.

PetSuites of America National Veterinary Associates, Inc. Founded 1999 Founded 1996 Locations Over 70, with 32 under PetSuites d/b/a Locations 500 ± Locations Headquarters Aguora Hills, California Areas Served United States (41 states) and Four Countries Guarantor NVA Holdings, Inc. Headquarters Aguora Hills, California Website www.petsuitesofamerica.com Website www.nva.com

Founded in 1999, PetSuites is a pet boarding, daycare, and grooming facility for dog and cat owners seeking the cleanest facilities and most professional care available for their pets. Pets are provided resort-style suites with scheduled playtime and attention as requested by their owner, making daycare and extended care as comfortable as possible for both. Supported and owned by National Veterinary Associates, Inc. (NVA), the industry is experiencing major growth as pet ownership in America is at an all-time high, with double digit year over year growth. NVA is one of the world’s largest veterinary and pet care companies. It is the owner-operator of more than 670 veterinary hospitals and pet resorts in 43 states, as well as Canada, Australia, and New Zealand. NVA employs over 2,500 veterianarians and 4,000 other staff members. In June 2019 JAB Holding Co. agreed to buy a majority stake in NVA. JAB Holding Co. is owned by the Reimann family, one of the wealthiest in the world, according to Forbes. The company has a controlling interest in several companies such as Panera Bread, Krispy Kreme, Caribou Coffee, Dr. Pepper, Snapple, and many others.

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06/18/2019 PETSUITES | 45237 GRAND RIVER AVE, NOVI, MI OFFERING MEMORANDUM REPRESENTATIVE FACILITY PHOTOGRAPHS

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502.426.1050 | HOGANDEV.COM 11 PETSUITES | 45237 GRAND RIVER AVE, NOVI, MI PROPOSED SITE RENDERING OFFERING MEMORANDUM

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DEMOGRAPHICS

Population 1 MILE 3 MILES 5 MILES 2019 Population 1,567 44,494 119,590

2024 Population 1,647 46,393 123,690

2019-2024 Annual Rate 1.00% 0.84% 0.68%

Households 1 MILE 3 MILES 5 MILES 2019 Total Households 566 18,015 49,822

2024 Total Households 596 18,799 51,597

2019-2024 Annual Rate 1.04% 0.86% 0.70%

Household Income 1 MILE 3 MILES 5 MILES 2019 Average Household Income $175,109 $122,488 $119,602

1.5K 1.0% Annual Growth population population (1 mile) $175K (1 mile) avg. HH inc. (1 mile)

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DETROIT MSA MARKET OVERVIEW

Metro Detroit Area

The Detroit metropolitan area, often and its suburbs, the combined Detroit– referred to as , is a major Windsor area has a population of about metropolitan area in the US State of 5.7 million. When the nearby Toledo Michigan, consisting of the city of Detroit metropolitan area and its commuters are and its surrounding area. taken into account, the region constitutes a much larger population center. An Metro Detroit is known for its automotive estimated 46 million people live within heritage, arts, entertainment, popular a 300-mile (480 km) radius of Detroit music, and sports. The area includes a proper. Metro Detroit is at the center of an variety of natural landscapes, parks, and emerging Great Lakes Megalopolis. beaches, with a recreational coastline linking the Great Lakes. Detroit and the surrounding region constitute a major center of commerce Metro Detroit also has one of the largest and global trade, most notably as home metropolitan economies in the U.S., with to America’s ‘Big Three’ automobile seventeen Fortune 500 companies. companies: General Motors, Ford, and Chrysler. Detroit’s six-county MSA has The Office of Management and Budget a population of about 4.3 million and (OMB), a federal agency of the United a workforce of about 2.1 million. The States, defines the Detroit–Warren– Detroit MSA had a Gross Metropolitan Dearborn Metropolitan Statistical Area Product of $252.7 billion as of September (MSA) as the six counties of Lapeer, 2017. Metro Detroit has made Michigan’s Livingston, Macomb, Oakland, St. Clair, and economy a leader in information Wayne. As of the 2010 census, the MSA technology, biotechnology, and advanced had a population of 4,296,250 with an area manufacturing. Michigan ranks fourth of 3,913 square miles (10,130 km2). nationally in high-tech employment with 568,000 high-tech workers, including With the adjacent city of Windsor, Ontario 70,000 in the automotive industry.

502.426.1050 | HOGANDEV.COM 15 HOGAN REAL ESTATE EXCLUSIVE AGENTS

Justin Phelps Hunter Jacobs D: 502.271.5820 D: 502.271.5812 M: 502.426.1050 M: 502.426.1050 F: 502.426.1223 C: 502.639.4727 F: 502.426.1223

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