Offering Memorandum Exclusive Net – Lease Offering Confidentiality and Disclaimer

Bob Evans 2040 South Reed Road Kokomo, Indiana, 46901

Representative Photo

OFFERING MEMORANDUM EXCLUSIVE NET – LEASE OFFERING CONFIDENTIALITY AND DISCLAIMER

Marcus & Millichap hereby advises all prospective some properties, including newly-constructed facilities or the subject property, the future projected financial purchasers of Net Leased property as follows: newly-acquired locations, may be set based on a tenant’s performance of the property, the size and square footage projected sales with little or no record of actual of the property and improvements, the presence or The information contained in this Marketing Brochure has performance, or comparable rents for the area. Returns absence of contaminating substances, PCB’s or asbestos, been obtained from sources we believe to be reliable. are not guaranteed; the tenant and any guarantors may the compliance with State and Federal regulations, the However, Marcus & Millichap has not and will not verify fail to pay the lease rent or property taxes, or may fail to physical condition of the improvements thereon, or the any of this information, nor has Marcus & Millichap comply with other material terms of the lease; cash flow financial condition or business prospects of any tenant, or conducted any investigation regarding these matters. may be interrupted in part or in whole due to market, any tenant’s plans or intentions to continue its occupancy Marcus & Millichap makes no guarantee, warranty or economic, environmental or other conditions. Regardless of the subject property. The information contained in this representation whatsoever about the accuracy or of tenant history and lease guarantees, Buyer is Marketing Brochure has been obtained from sources we completeness of any information provided. responsible for conducting his/her own investigation of all believe to be reliable; however, Marcus & Millichap has matters affecting the intrinsic value of the property and not verified, and will not verify, any of the information As the Buyer of a net leased property, it is the Buyer’s the value of any long-term lease, including the likelihood contained herein, nor has Marcus & Millichap conducted responsibility to independently confirm the accuracy and of locating a replacement tenant if the current tenant any investigation regarding these matters and makes no completeness of all material information before should default or abandon the property, and the lease warranty or representation whatsoever regarding the completing any purchase. This Marketing Brochure is not terms that Buyer may be able to negotiate with a accuracy or completeness of the information provided. All a substitute for your thorough due diligence investigation potential replacement tenant considering the location of potential buyers must take appropriate measures to verify of this investment opportunity. Marcus & Millichap the property, and Buyer’s legal ability to make alternate all of the information set forth herein. expressly denies any obligation to conduct a due diligence use of the property. examination of this Property for Buyer. NON-ENDORSEMENT NOTICE By accepting this Marketing Brochure you agree to release Any projections, opinions, assumptions or estimates used Marcus & Millichap Real Estate Investment Services and Marcus & Millichap Real Estate Investment Services, Inc. in this Marketing Brochure are for example only and do hold it harmless from any kind of claim, cost, expense, or (“M&M”) is not affiliated with, sponsored by, or endorsed not represent the current or future performance of this liability arising out of your investigation and/or purchase by any commercial tenant or lessee identified in this property. The value of a net leased property to you of this net leased property. marketing package. The presence of any corporation’s depends on factors that should be evaluated by you and logo or name is not intended to indicate or imply your tax, financial and legal advisors. CONFIDENTIALITY AND DISCLAIMER affiliation with, or sponsorship or endorsement by, said corporation of M&M, its affiliates or subsidiaries, or any Buyer and Buyer’s tax, financial, legal, and construction The information contained in the following Marketing agent, product, service, or commercial listing of M&M, advisors should conduct a careful, independent Brochure is proprietary and strictly confidential. It is and is solely included for the purpose of providing tenant investigation of any net leased property to determine to intended to be reviewed only by the party receiving it lessee information about this listing to prospective your satisfaction with the suitability of the property for from Marcus & Millichap and should not be made available customers. your needs. to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been ALL PROPERTY SHOWINGS ARE BY APPOINTMENT Like all real estate investments, this investment carries prepared to provide summary, unverified information to ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP significant risks. Buyer and Buyer’s legal and financial prospective purchasers, and to establish only a preliminary AGENT FOR MORE DETAILS. advisors must request and carefully review all legal and level of interest in the subject property. The information financial documents related to the property and tenant. contained herein is not a substitute for a thorough due While the tenant’s past performance at this or other diligence investigation. Marcus & Millichap has not made locations is an important consideration, it is not a any investigation, and makes no warranty or guarantee of future success. Similarly, the lease rate for representation, with respect to the income or expenses for Table of Contents

Investment Overview Investment Highlights Tenant Overview Private Equity Sponsor

Financial Analysis Financial Overview Lease Summary

Property Overview Location Overview Surrounding Area Map Property Photo Surrounding Property Photos Local Map Regional Map

Demographics Population Income Employment Representative Photo

FINANCIAL OVERVIEW Offering Terms Investment Highlights Price NOI CAP Rate ➢ Attractive Rent Escalations |Two Percent Annually $3,353,303 $192,815 5.75% ➢ 20 Year Triple-Net (NNN) Lease ➢ Corporate Tenant; Lease Backed by Roughly 500 Corporate Financial Summary Locations

Property Name Bob Evans Restaurants ➢ Strong Real Estate Characteristics: Dense Retail Corridor 2040 S REED RD Location ➢ Inherent Value: Rent/SF at or Below Market, Low Price/SF KOKOMO, IN Compared to National Average Price $3,353,303 CAP Rate 5.75% NOI $192,815 Investment Overview Rent Per SF $34.08 Marcus & Millichap is pleased to present the exclusive listing for a Price Per SF $593 Bob Evans Property. The property consists of approximately 5,658 Building Size 5,658 sq ft square feet of building space and is situated on approximately 1.73 Lot Size 1.73 acres acres of land.

Date Opened January-2003 The property will be subject to a 20-year triple net (NNN) lease. The Last Remodel November-2012 lease will commence on April 28, 2017. The base rent is $192,815 with two percent annual rental increases. The increases will continue through the six, five-year tenant renewal options. The tenant will be a newly formed entity consisting of all Bob Evans Restaurants.

Bob Evans Restaurants was started more than 60 years ago with a single restaurant in Rio Grande, Ohio. The concept has since grown to roughly 500 family restaurants in approximately 18 different states. Their wide variety of menu options appeals to a wide demographic, whether its breakfast, lunch, or dinner Bob Evans has something for everyone. Bob Evans Restaurants generated over

$900 million in sales during fiscal year 2016. INVESTMENT HIGHLIGHTS

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap 5 Services information This information is a service and bears has mark been all and friends like friends and family.” “Westrangerstreat like friends of risk secured Marcus for any & from Millichap inaccuracies sources Real we . Any Estate believe projections, Investment to be reliable, opinions, Services, but assumptions Inc we . © make BOB EVANSBOB RESTAURANTS 2017 no or Marcus representations estimates & Millichap used - herein or Bob Bob Evans warranties, are for example expressed purposes or implied, only as and to do the not accuracy represent of ➢ ➢ ➢ ➢ the the information current grownfrom a 12 iconicAmerican brand that has Founded in1948, Bob Evansan is restaurants recently remodeled. maintained restaurants Strong realestate profilewith well atmosphere at an affordableprice. comfortfood in afamily friendly Craveable,fresh offering of carryout (16%). business 37%, 31%) with a Dinner: large dayparts (Breakfast: 32%, Lunch: Restaurants operateacross 3 ~500 units. restaurant to $900M in and sales - or premisebusiness. Wellfor positioned growing off future . References performance to square of the footage property or age . Marcus are approximate & Millichap - stool, 24 hour . Real Buyer Estate must Investment verify the  100% of100% - -

6 TENANT OVERVIEW BOB EVANS PROFILE

Strong Asset Strong Tenant Significant Experience

➢Strong real estate profile, all ➢Scale restaurant brand with ➢GGC is the most active private units have been recently $900M in sales and ~500 units equity buyer of full service remodeled. with regional density in Ohio. restaurant companies.

➢Compelling unit-level ➢Participates in the attractive and ➢History of growing same fundamentals. growing family dining segment restaurant sales & margins have which has consistently led to successful outcomes: 60%+ outperformed the casual dining IRRs across GGC restaurant segment. transactions.

➢Iconic brand with strong ➢CEO Saed Mohseni has significant awareness / NPS. experience in casual dining, growing and taking two restaurant ➢Strong balance sheet with no companies public; will lead a new third party debt & $75M of cash but experienced management

at close. team. ATTRACTIVE ATTRACTIVE PROFILE

any Denny's 1,708 & from Dinner Lunch Millichap inaccuracies 32% 37% 31% IHOP 1,675 sources Olive Garden 843 Real Significant Scale we . Outback Steakhouse 755 Any Estate believe

projections, Red Lobster 704 Investment

to Cracker Barrell 640 be

reliable, Ruby Tuesday 575 900M 900M in opinions, Services, PremiseMix On Off Red Robin 546 but assumptions -

- TGI Fridays 527 84% 16% Inc we premise premise

. ~500

O'Charley's 336 BOB EVANSBRAND herein or Logan's Roadhouse 260 warranties, Weekday Weekend are Day Mix Carraba's 247 for 60% 40% CPK 232 example expressed Bonefish Grill 210

purposes Cheesecake Factory 191 or

implied, BJ's Restaurants 177 only Joe's Crabshack 127 ~500 as and Bravo Brio 118 to do the not accuracy represent units. of the the information current Brand Awareness Strong RealEstate Footprint or future . References performance to square of the footage property Iconic Brand Significant density in Ohio region region (4x in Ohio density Significant or age . Marcus are approximate & largest competitor) largest Millichap 1 . Real Buyer Estate 14 must Net Promoter Score 14 Investment verify 53 the 48 2 22 191 29 47 4 34 15 7 8 27 7 1

8 BRAND OVERVIEW MANAGEMENT TEAM CEO Saed Mohseni has significant experience in the full-service dining industry and will lead a new but experienced management team.

KEY STATS ACCOMPLISHMENTS

➢ Bravo Brio, CEO ‘07-’15 Significant Restaurant Experience: Former McCormick & Schmick’s 30+ years of restaurant experience starting as Employers ’86-’07 (CEO ’00-’07) a general manager at McCormick & Schmick’s Marriott Corporation, ’84-’86 in 1986.

Oregon State University Education Portland University ➢ CEO of Multiple Casual Dining Chains: Former CEO of Bravo Brio (2007-2015) & McCormick Bravo Brio: ‘06 – ‘15 & Schmick’s (2000-2007). Boards Chuy’s: ‘12 – Current Bob Evans: ‘16 – Current ➢ Strong Performance as CEO: Doubled EBITDA & units at both McCormick & Schmick’s & Prion Performance as CEO Bravo Brio.

➢ Restaurant IPO Experience: CEO during two EBITDA ($M) EBITDA ($M) restaurant IPOs (McCormick & Schmick’s: IPO IPO Saed 2004, Bravo Brio: 2010). Saed Joined Joined ➢ >10 years working for Private Equity: CEO of McCormick & Schmick’s when Castle Harlan & BRS bought business in 2001 through their MANAGEMENT TEAM exit and was recruited by Castle Harlan to be CEO of Bravo Brio when they bought the business in 2006.

RL Results Since Close Strong Scale SSS % 2% Platform 2% +700 (700+ units, $2.5B sales) (~500 units, $900M sales) bps 0 Leading Brand Awareness -2 (Loyal customer following with high perception across both brands) -4 Undermanaged -5% -6 but fixable asset Avg Pre- Avg. Post- Acq(1) Acq(1) (Negative trends turned (Similar thesis) positive, higher margins) EBITDAR % 15% Attractive Real 15% +500 Estate bps 13% (Healthy real estate portfolio, (Strong asset coverage from owned 13 recently remodeled) real estate, recently remodeled) Strong History of 11 10% Performance 9

7 RED LOBSTER CASE STUDY

Identifiable Profit 5 Opportunities Pre-GGC Current Near-Term (Multiple avenues of cost and (Multiple avenues of cost, sales Target sales upside) and new unit opportunities)

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap 10 Services information This information is a service and bears • • • has mark been productivity improvements and unit growth. brands with an opportunity to grow earnings through execution,better partner with strong managementto teamsacquire strong, established Bob directlywithin fits GGC’sEvans Restaurants investmentstrategy companies with annual of revenues>$15 billion. companies over retail tenyears,investedin and retail the past restaurant GGC has been one of the most activeacquirors of multi over $15 billion ofcommitted capital. Golden privateCapital (“GCC”) Franciscobased Gate equity a San firmwith is all of risk secured Marcus for any & from Millichap inaccuracies sources Real we . Any Estate believe projections, Investment to be reliable, opinions, Services, but assumptions Inc we . © make Restaurant Private Equity InvestmentsPrivateRestaurant 2017 no or Marcus representations estimates & Millichap used herein or warranties, are for example expressed purposes or implied, only as and to do the not accuracy represent of the the information current or future . References performance to square of the footage property or - unit restaurant and unit restaurant age . Marcus are approximate & Millichap . Real Buyer Estate must Investment verify the 

11 PRIVATE EQUITY SPONSOR Representative Photo

FINANCIAL ANALYSIS Services information This information Rental Increases Options to Renew Roof & Structure Lease Type Lease Term Remaining Lease Expiration Lease Commencement Lease Term Guarantor Tenant Ownership Property Type Property Name Property Lease Summary Lease Property is a service and bears has mark been all of risk secured Marcus for any & from Millichap inaccuracies sources Real we . Any Estate believe projections, Investment to be reliable, opinions, Services, but assumptions Inc we . © make 2017 no or Marcus representations Six, Five Year Option Periods estimates & Millichap used Bob Evans Restaurants Bob Evans Restaurants Bob Evans Restaurants Net Leased Private Private Equity Sponsor Two Two Percent Annually herein or Tenant Responsible warranties, Triple are for example expressed - Restaurant 4/30/2037 4/28/2017 Net (NNN) 20 Years 20 Years 20 purposes Private or implied, only as and to do the not accuracy represent Annualized Operating DataAnnualized Operating Rent Increases of the the Annual Rent information CAP CAP Rate current Year 20 Year 19 Year 18 Year 17 Year 16 Year 15 Year 14 Year 13 Year 12 Year 11 Year 10 Price Year 4 Year 3 Year 2 Year 1 Year 9 Year 8 Year 7 Year 6 Year 5 or future . References performance to square of the footage property or Annual Rent age . Marcus $280,895 $280,895 $275,387 $269,987 $264,694 $259,503 $254,415 $249,427 $244,536 $239,741 $235,040 $230,432 $225,913 $221,484 $217,141 $212,883 $208,709 $204,617 $200,605 $196,671 $192,815 are approximate & Millichap . Real Buyer Estate must Investment verify the Monthly Rent $3,353,303 $192,815 $23,408 $23,408 $22,949 $22,499 $22,058 $21,625 $21,201 $20,786 $20,378 $19,978 $19,587 $19,203 $18,826 $18,457 $18,095 $17,740 $17,392 $17,051 $16,717 $16,389 $16,068 5.75%

13 FINANCIAL OVERVIEW AND LEASE SUMMARY Kokomo, IN

LOCATION OVERVIEW Location Highlights Location Overview

➢ Major National Retailers in Surrounding Area Include: Walmart, Meijer, This Bob Evans property is located at 2040 South Reed Road in Kokomo, Kohl’s, JCPenney, Kroger, T.J. Maxx, Best Buy, Target, and Staples Indiana. Kokomo is a city in and the county seat of Howard County, Indiana, United States. A significant number of technical and engineering ➢ Indiana University Kokomo | Located Two Miles From Subject Property| innovations were developed in Kokomo, particularly in automobile 4,106 student annual enrollment production, which encompasses a substantial portion of Kokomo’s ➢ FCA and GM Manufacturing Facilities| Located Less Than One Mile From employment today. Subject Property | Combined Employment of Roughly 10,000 Surrounding Retail and Points of Interest ➢ Strong Traffic Counts in the Area |South Reed Road| 37,951 Vehicles The subject property is well-positioned in a dense retail corridor, Daily benefitting from its proximity to major national and local tenants. Nearby national tenants include: Walmart, Meijer, Kohl’s, JCPenney, Kroger, TJ Maxx, HHGregg, Dressbarn, Target, Staples, Best Buy, Big Lots, Jo-Ann, Advance Auto Parts, Goodwill, Planet Fitness, Red Lobster, Papa John’s, Chipotle, Buffalo Wild Wings, AMC, as well as many others. Hotel accommodations in the area include the Comfort Inn & Suites, Fairfield Inn & Suites, Hampton Inn & Suites, Motel 6, and other local establishments. Indiana University at Kokomo can be found less than two miles away from this Bob Evan’s location, with annual enrollment of over 4,106 students. St. Vincent Kokomo, a 138 bed acute care facility, is within four miles of the subject property. Markland Mall, an indoor mall that houses roughly 45 stores, is also less than one mile from this Bob Evans location. General Motor’s Components Holding facility, as well as Fiat Chrysler Automobile’s Transmission plant, two of Kokomo’s largest employers, are within a half- mile of this subject property. Traffic Counts and Demographics ADTC 37,951 There are approximately 41,683 people within a three-mile radius of this property and more than 65,417 within a five-mile radius. The property is located on South Reed Road, which has average daily traffic counts of 37,951.

Kokomo, Indiana Kokomo’s employment is largely based in the manufacturing industry. Healthcare, social assistance, and the hospitality industry follow with combined total employment of roughly 15,000. A number of incentive programs help attract businesses to the city – programs such as property tax abatements, revolving loan funds, and customized business incentives all work to grow and develop the economy of Kokomo city. The city is also known for its Historical Society, which occupies the Seiberling Mansion and the Elliot House. The Seiberling Mansion was built as the residence of Monroe Seiberling, and is now a nationally recognized tourist attraction. Kokomo is OVERVIEW LOCATION also home to the Opalescent Glass Factory, Elwood Haynes Museum, and the Kokomo Art Center, which further elucidate Kokomo’s nickname: The City of Kokomo, IN Firsts. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap 15 SURROUNDING AREA MAP

17 LOCAL MAP Services information This information is a service and bears has mark been all of risk secured Marcus for any & from Millichap inaccuracies sources Real we . Any Estate believe projections, Investment to be reliable, opinions, Services, but assumptions Inc we . © make 2017 no or Marcus representations estimates & Millichap used herein or warranties, are for example expressed purposes or implied, only as and to do the not accuracy represent of the the information current or future . References performance to square of the footage property or age . Marcus are approximate & Millichap . Real Buyer Estate must Investment verify the

18 REGIONAL MAP PROPERTY PHOTOS PROPERTY

Kokomo, IN Kokomo, IN

Population POPULATION In 2014, the population in your selected geography is 65,416. The population has 1-Mile 3-Mile 5-Mile changed by -2.84% since 2000. It is estimated that the population in your area will be 65,301 five years from now, which represents a change of 0.17% from the current 2010 5,295 41,622 65,106 year. The current population is 47.88% male and 52.11% female. The median age of 2014 5,258 41,683 65,417 the population in your area is 40.4, compare this to the Entire US average which is 37.3. The population density in your area is 831.58 people per square mile. 2019 5,172 41,279 65,301

Income 2014 HOUSEHOLD INCOME In 2014, the median household income for your selected geography is $37,030, compare this to the Entire US average which is currently $51,972. The median 1-Mile 3-Mile 5-Mile household income for your area has changed by -9.78% since 2000. It is estimated Average $44,969 $47,157 $52,527 that the median household income in your area will be $41,747 five years from now, which represents a change of 12.73% from the current year. The current year per Median $33,039 $34,299 $37,031 capita income in your area is $22,573, compare this to the Entire US average, which is $28,599. The current year average household income in your area is $52,526, TOP EMPLOYERS IN KOKOMO compare this to the Entire US average which is $74,533. Employers # of Employees Employment In 2014, there are 30,620 employees in your selected area, this is also known as the Fiat Chrysler Automobiles 7,500 daytime population. The 2000 Census revealed that 46.52% of employees are Kokomo School Corporation 1,497 employed in white-collar occupations in this geography, and 53.42% are employed in DEMOGRAPHICS blue-collar occupations. In 2014, unemployment in this area is 9.16%. In 2000, the Delphi Electronics & Safety 1,060 average time traveled to work was 20.4 minutes.