OFFERING MEMORANDUM 18601 HUBBARD DRIVE DEARBORN, MICHIGAN Bill O’Connor David Hesano Senior Vice President First Vice President +1 248 351 2045 +1 248 351 2014 [email protected] [email protected] AFFILIATED BUSINESS DISCLOSURE AND CONFIDENTIALITY AGREEMENT CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgement of that possibil- ity and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affili- ates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s). Confidentiality Agreement Your receipt of this Memorandum constitutes your acknowledgement that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc. If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc. Disclaimer This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner. © 2018 CBRE, Inc. All Rights Reserved. 01 EXECUTIVE SUMMARY 01 EXECUTIVE SUMMARY Investment Highlights • Traffic Count of Over 30,000 Per Day on Hubbard Drive • In the Shadow of Ford Motor Company’s World Headquarters • A Population of Over 380,000 Within a Five-Mile Radius • Corporate Guaranty with Rental Increase Every Five Years • New Construction on a Ground Lease with 17+ Years Remaining • Benihana Had Total Sales Over the Past Four Quarters of $5,375,059. Additionally, the Q1 2018 Sales Exceeded Q1 2017 Sales. • Out Parcel to Fairlane Town Center - Consisting of 1.465 Million Square Feet Anchored by Macy’s, JCPenney, Sears, and AMC Star Theaters • Excellent Location with Access to M-39 (Southfield Freeway) • 30,000 College Students at University of Michigan - Dearborn and Henry Ford College within One Mile Investment Overview This is a great opportunity for an investor looking to purchase a passive income opportunity with absolutely zero management responsibilities. The upside on buying a ground lease is that you have the assurance of Benihana’s strength as a tenant, while not owning the improvements on the land. It is a much less risky position verses paying for all of the improvements on the land. In addition, Benihana recently constructed their new building consisting of 8,250-square feet that opened in the fall of 2008, after the completion of their new building, they razed the original and constructed a new parking lot on site as well. Dearborn is the World Headquarters to Ford Motor Company. The Ford Motor Company’s HQ Building is visibly located approximately one mile to the southeast of Benihana. This ensures an investor that Benihana’s “neigh- borhood” will remain in Class “A” condition. Moreover, Ford Motor has deed covenants in place on all of the properties, which they have either devel- oped or owned in order to ensure that the surrounding neighborhood re- mains in outstanding condition. Many of Benihana’s neighboring properties also have these deed restrictions (CCR will be made available upon request). 4 18601 Hubbard Drive | Dearborn, MI 01 EXECUTIVE SUMMARY CBRE, Inc. has been retained by the property owner as the exclusive marketing advisor for the disposition of the Benihana Ground Lease (the “Property”) located at 18601 Hubbard Drive in Dearborn, Michigan 48126. The Offering CBRE is pleased to announce the assignment to exclusively market this Benihana Ground Lease located at 18601 Hubbard Drive in Dearborn, Michigan. Benihana has been operating at the current location since 1976. The restau- rant is on a 38-year corporate ground lease which will expire on November 30, 2035. There are then just over 17 years remaining on the lease term. The current annual rent is $21.50 per square foot which will increase to $24.00 per square foot on December 1, 2018. Subsequent lease increases occur every five years throughout the remainder of the lease term at roughly $2.50 per square foot. The lease is on absolute net ground lease basis, the tenant is responsible for all real estate taxes, insurance and common area maintenance attributable to the property. The tenant also pays a quarterly percentage rent. Tenant and Company Overview Headquartered in Miami, Benihana is the nation’s leading operator of Japanese theme and sushi restaurants with 95 restaurants nationwide, includ- ing 62 Benihana restaurants, 25 RA Sushi restaurants and eight Haru sushi restaurants. In addition, 16 franchised Benihana restaurants are operating in the United States, Latin America and the Caribbean. In 2012 the company was acquired by Angelo, Gordon & Co. L.P., a privately-held registered investment advisory dedicated to alternative investing. Benihana is one of the largest Asian restaurant chains in the United States by revenue and restaurant loca- tions. Benihana Inc. is a Florida-based American restaurant company founded in 1964. It is headquartered in Doral, Florida but owns and franchises over 70 Japanese cuisine restaurants around the world. The concept of this restaurant includes the meals being theatrically prepared by a knife-wielding, joke-telling chef who keeps the experience lively and entertaining. The first restaurant was opened in 1968 in Chicago and the company has grown tremendously since. Benihana Inc. expanded by purchasing the Haru and RA Sushi restaurants after 1995. Today it thrives because of its exciting atmosphere and scrump- tious Japanese cuisine. 5 18601 Hubbard Drive | Dearborn, MI 02 PROPERTY DESCRIPTION 02 PROPERTY DESCRIPTION SITE SUMMARY 18601 Hubbard Drive Address Dearborn, MI County Wayne Tenant Benihana Property Type Single Tenant Retail Restaurant Parcel Number 32-09-144-01-004 Building Size 8,250 SF Year Built/Renovated 2008 Parcel Size 2.31 Acres Frontage 196’ on Hubbard Drive One via Hubbard Drive, One via North- Curb Cuts wood Drive, and One via Town Center Drive Number of Floors One Parking Adequate Surface Spaces 7 18601 Hubbard Drive | Dearborn, MI 02 PROPERTY DESCRIPTION Micro Aerial Hubbard Drive SITE Fairlane Plaza Northwood Drive Town Center Drive 8 18601 Hubbard Drive | Dearborn, MI 03 FINANCIAL ANALYSIS 03 FINANCIAL ANALYSIS Year One Cash Flow Estimate BenihanaBenihana - Dearborn Year One CashCash Flow Flow Estimates Estimates