Absolute NNN Ground Lease Outpad to East Towne Mall CONFIDENTIALITY and DISCLAIMER

OFFERING MEMORANDUM

Absolute NNN Ground Lease Outpad To East Towne Mall CONFIDENTIALITY AND DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. NON-ENDORSEMENT NOTICE

Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. 53

169 61 41 2

169 53 Duluth TABLE OF CONTENTS 45

41 2 Michigan 63 Investment Summary...... 1 53 141

51 Investment Highlights...... 2 45 Minnesota Aerial Map...... 3 & 5 2 8

8 63 Site Plan...... 357 8 94 41 Tenant Summary...... 9 141 WISCONSIN 51 Minneapolis St. Paul 53 Local Map...... 15 94 12 45 Bloomington Eau Claire 212 Location Highlights...... 17 12 61 10 169 Green Bay 35 Location Summary...... 19 41 52 53 Appleton

63 61 45 Demographics...... 14 21 94 10 Rochester 14 218 Contact Information...... 23 90 151 43 51 41

12 90 14 45 63 52 41

69 35 90 65 61 151 14 18 94 Wauwatosa 18 Madison Milwaukee 18 18 Iowa 218 18 Waukesha West Allis 12 43 151 14 45 69 Racine 65 52 Janesville 20 94 Kenosha Waterloo Dubuque 14 20 20 90 Toll Waukegan 20 69 52 Rockford Toll 35 63 61 151 Illinois Toll 380 39 Skokie 218 Elgin Evanston INVESTMENT SUMMARY

4323 E TOWNE BLVD, MADISON, WI 53704

PRICE: $4,178,571 CAP: 7.00% RENT: $292,500

OVERVIEW ANNUALIZED OPERATING DATA

Price $4,178,571 Lease Term Annual Rent

Gross Leasable Area (GLA) 8,156 SF Years 1-10 $292,500

Lot Size (approx) 1.83 Acres Option 1 - Years 10-15 $292,500

Net Operating Income $292,500 Option 2 - Years 16-20 $321,750

CAP Rate 7.00% Option 3 - Years 21-25 $353,925 Year Built 2014

LEASE ABSTRACT

Lease Type Absolute Net

Lease Term 10 Years

Lease Start 02/22/2013

Lease Expiration 05/31/2024

Renewal Options 3x5

Increases 10% in options 2 and 3

Roof & Structure Tenant Responsible

1 INVESTMENT HIGHLIGHTS

tt $4,178,571 tt The site is an out pad NNN ground lease to the areas largest concentration of retail tt Located just a few miles from one of the Nations largest and best ranked public universities: University of Wisconsin-Madison tt Located Down the Street from Madison Area Technical College and Dane County Regional Airport tt East Towne Mall is Anchored by Sears, JC Penny, Boston Store, and Dick’s Sporting Goods and is over 839,000 sqft tt Highly Populated Region with Roughly 115,000 Residents in a 5-Mile Radius

116,452 $75,327 TOTAL AVERAGE POPULATION HOUSEHOLD WITHIN 5-MILE INCOME WITHIN RADIUS 5-MILE RADIUS

39,500 VPD - U.S. HIGHWAY 151 10,100 VPD - EAGAN ROAD 5,550 VPD - E TOWNE BLVD 2 The University of Wisconsin-Madison houses a student body of 43,820, including 21,752 faculty and staff on a 936 acre campus. US HWY 151 (6.3 MILES)

IVE DR IAL ON OL E C

3 4 Madison, WI AutoMall

Dane County

Regional Airport EAGAN RD - 10,100 VPD

E TOWNE BLVD - 5,500 VPD

US HWY 151 - 39,500 VPD

Light Industrial (Inc’d Madison Concrete Pipe and Pumps & Equipment)

5 6 SITE PLAN

INDEPENDENCE LN

E TOWNE BLVD

7 8 TENANT SUMMARY RANKINGS tt Four-Star rating - YELP tt Four & one-half star rating - Trip Advisor DOOLITTLES WOODFIRE GRILL tt Four & one-half star rating - OpenTable t The first Doolittles opened its doors in 1989 in Eagan, Minnesota. t Four Star rating - Indeed.com Doolittles has steadily grown because of its commitment to its ideals and goals which are accomplished through loyal and dedicated employees. In a collaborative effort, owners Lynn Reimer and John Sheehan have led the chef-driven menu which has evolved over the years to include woodfired rotisserie cooking. Doolittles’ focus on Guest Obsession and the desire to create a dining experience for all occasions, drives the team’s creative flair which has given way to many new mouthwatering creations and seasonal specials. Using unique and fresh ingredients prepared in scratch kitchens, they reinforce “It’s about Quality” with this culinary team! DOOLITTLES MISSION It is our mission to provide you with the best quality dining experience possible. We pride ourselves in offering only the freshest ingredients, prepared to order in our scratch kitchens, and served by our attentive, knowledgeable staff. “It’s about Quality” means that we make this personal commitment to you each and every visit. With this promise, we are proud to offer you a dining experience for all occasions. It is our goal that you become a Guest for Life. DOOLITTLES VISION To win over Guests for Life, To develop Employees for Life, To be a Citizen for Life in the communities we serve. 9 10 EAST TOWNE MALL

11 11 12 DOOLITTLES WOODFIRE GRILL

BLOOMINGTON, MN HEADQUARTERS

1989 5

FOUNDED LOCATIONS

CASUAL PRIVATE DINING OWNERSHIP INDUSTRY

LYNN JOHN REIMER SHEEHAN

CFO COO

13 14 113 Token Creek 19 19 19 Waunakee 90 Sun Prairie

113

12 Westport

151

51 Ashton

113 Burke 12 90

30 94 Middleton 14

14 Shorewood 151 Hills Cottage Grove 51 MADISON Monona 90

18 18

18 Door Creek 14

Five Points15 18 51 McFarland 90

18 Fitchburg 16 113 Token Creek 19 19 19 Waunakee 90 Sun Prairie

113

12 Westport

151

51 Ashton LOCATION HIGHLIGHTS 113 Burke 12 90 6.3 Miles to University of Wisconsin-Madison MADISON, WI 30 HOME TO UNIVERSITY OF WISCONSIN 94 Middleton 14

14 Shorewood 151 Hills Cottage Grove 51 MADISON Monona 90 Located in heart of the Strong traffic counts & 14 region’s destination retail visibility with over 55,100 18 18with over 867,000 SF vehicles passing in front 18 of major retail Door Creek of or near the site daily 14 MAJOR EMPLOYERS: 2017 Five Points 18 MADISON, WI 51 McFarland 90 State of Wisconsin 42,514 Fitchburg 18 University of Wisconsin 21,608

University Hospitals and Clinics 9,001 Epic Systems 8,100 The region is the SSM Health Care 6,380 Madison, WI is the United States Government 5,321 consummate College Capitol of the State, Madison Metropolitan School District 3,903 Town being supported which draws many American Family Mutual Insurance Group 3,842 by the University of corporations and Meriter-UnityPoint Health 3,268 Wisconsin and Madison City of Madison 2,973 industries to the region Technical College 17 18 MADISON, WISCONSIN

Since Madison is the capital of Wisconsin, many powerful companies cities, it is no surprise that people are flocking to live in Madison. Not have expanded to this area. These companies include technology only do residents enjoy outdoor activities, Madison is well-known by companies such as Google, Microsoft, Broadjam, and more. Additionally, citizens of its surrounding areas of Chicago and Minneapolis to be a it is an attractive place for people to come and live. It was identified as popular stop for Broadway plays and big-name musicians of all genres. the best place to live in the United States in 1996 by Money magazine And, who doesn’t love food. Madison is ranked fifth in Livability’s list and has consistently been ranked near the top of the best-places list, of best food cities for its collection of renowned chefs, top restaurants, with the city’s low unemployment rate, which is a major contributor in and food cooperatives and festivals that take advantage of locally this ranking. Residents also enjoy hiking and biking along the idyllic grown foods. All of these attributes also entertain students of University shorelines of the five lakes in Madison. These activities allow people of Wisconsin, Madison. Whether it’s a late-night drink, or a pre-game who visit and live in Madison to entertain an active lifestyle that has for a big football game, Doolittle’s will probably be on someone’s list also augmented Madison’s rating on the Best Places to Live. Coupled for libation and food. with its strong job market and reputation as one of America’s greenest

19 20 DEMOGRAPHICS / MADISON, WI 116,452 Total Population Within 5-Mile Radius

$75,327 $59,587 Average Household Income Median Household Income Within 5-Mile Radius Within 5-Mile Radius

52,650 23.71% From 2000 Total Households Within 5-Mile Radius

21 POPULATION 1 MILE 3 MILES 5 MILES HOUSEHOLDS BY EXPENDITURE 1 MILE 3 MILES 5 MILES 2022 Projection Total Average Household Retail Expenditure $66,667 $64,099 $66,605 Total Population 6,635 50,638 122,578 Consumer Expenditure Top 10 Categories 2017 Estimate Housing $17,446 $16,797 $17,411 Total Population 6,365 48,928 116,452 Transportation $11,933 $11,173 $11,743 2010 Census Shelter $10,271 $9,792 $10,127 Total Population 5,980 45,804 107,944 Food $7,250 $6,881 $7,044 2000 Census Personal Insurance and Pensions $6,821 $6,239 $6,602 Total Population 5,735 41,461 96,149 Health Care $4,005 $4,261 $4,517 Current Daytime Population Utilities $3,590 $3,525 $3,619 2017 Estimate 5,673 64,562 133,523 Entertainment $2,923 $2,779 $2,881 Household Furnishings and Equipment $1,871 $1,771 $1,884 HOUSEHOLDS 1 MILE 3 MILES 5 MILES Apparel $1,667 $1,591 $1,669

2022 Projection Total Households 3,106 23,183 56,154 POPULATION PROFILE 1 MILE 3 MILES 5 MILES

2017 Estimate Population By Age Total Households 2,914 22,073 52,650 2017 Estimate Total Population 6,365 48,928 116,452 Average (Mean) Household Size 2.29 2.19 2.18 Under 20 22.81% 22.09% 21.16% 2010 Census 20 to 34 Years 33.20% 27.30% 27.52% Total Households 2,740 20,656 48,727 35 to 39 Years 7.94% 8.35% 8.06% 2000 Census 40 to 49 Years 11.56% 12.50% 12.10% Total Households 2,584 18,598 42,559 50 to 64 Years 16.46% 18.01% 18.64% Occupied Units Age 65+ 8.03% 11.74% 12.55% 2022 Projection 3,106 23,183 56,154 Median Age 32.26 35.33 35.75 2017 Estimate 2,974 22,619 53,904 Population 25+ by Education Level 2017 Estimate Population Age 25+ 4,269 34,354 82,338 HOUSEHOLDS BY INCOME 1 MILE 3 MILES 5 MILES Elementary (0-8) 3.55% 2.12% 1.55% 2017 Estimate Some High School (9-11) 3.23% 4.63% 3.60% $150,000 or More 6.95% 5.02% 7.69% High School Graduate (12) 21.39% 23.19% 20.46% $100,000 - $149,000 12.54% 13.15% 14.69% Some College (13-15) 23.12% 20.98% 20.57% $75,000 - $99,999 17.49% 15.63% 15.75% Associate Degree Only 14.40% 11.37% 10.13% $50,000 - $74,999 22.47% 21.91% 20.45% Bachelors Degree Only 21.70% 23.44% 26.63% $35,000 - $49,999 13.32% 15.49% 14.17% Graduate Degree 10.45% 12.80% 15.95% Under $35,000 27.23% 28.80% 27.25% Average Household Income $72,710 $68,217 $75,327 Median Household Income $60,036 $55,878 $59,587 Per Capita Income $33,324 $30,900 $34,192 22 MADISON WISCONSIN

LIOR REGENSTREIF SENIOR MANAGING DIRECTOR INVESTMENTS SENIOR DIRECTOR, NET LEASED PROPERTIES GROUP ENCINO OFFICE Tel: (818) 212-2730 Fax: (818) 212-2710 [email protected] License: CA 01267761 JONATHAN BRAIER SENIOR INVESTMENT ASSOCIATE Tel: (818) 212-2773 Fax: (818) 212-2710 [email protected] License: CA #01958515