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REPRESENTATICE NOW UNDER CONSTRUCTION REPRESENTATIVE PHOTO Offering Memorandum THE HUMAN BEAN 1602Freddy’s N SCOTTSDALE ROAD Frozen Custard TEMPE,Lakewood, AZ 85281 CO AERIAL PHOTO THE HUMAN BEAN MARINA HEIGHTS CAR VENDING MACHINE 523 UNITS 234 UNITS 170 UNITS N SCOTTSDALE RD 42,400 CPD 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 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 2 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 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. © 2013 Marcus & Millichap ACT ID Z0070501 performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Z0070501 AERIAL PHOTO THE HUMAN BEAN 225+ STORES Starbucks 100+ SHOPPING, DINING & ENTERTAINMENT 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 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 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 3 performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Z0070501 performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Z0070501 AERIAL PHOTO THE HUMAN BEAN N SCOTTSDALE RD MARINA HEIGHTS SUN DEVIL FOOTBALL STADIUM TEMPE TOWN LAKE TEMPE CAMPUS 51,800+ STUDENTS 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 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 4 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 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. © 2013 Marcus & Millichap ACT ID Z0070501 performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Z0070501 EXECUTIVE SUMMARY THE HUMAN BEAN THE HUMAN BEAN 1602 N Scottsdale Road Tempe, AZ 85281 FINANCIAL SUMMARY BASE RENT $145,000 Price $2,416,000 Net Operating Income $145,000 Down Payment 100% $2,416,000 Total Return 6.0% $145,000 Cap Rate 6.0% Building SF 800 SF Net Cash Flow 6.0% $145,000 (1) Year Built 2019 Lot Size 0.73 Acres (1) Includes Cell Tower Income THE HUMAN BEAN LEASE SUMMARY TELECOMMUNICATIONS TOWER LEASE SUMMARY Lease Type Absolute Triple-Net (NNN) Lease Tenant Sun State Towers, LLC Tenant The Human Bean of Tempe-1, LLC Annual Rent $12,000 Lease Guarantor Personal Guarantees Lease Commencement Date July 23, 2018 Roof & Structure Tenant Responsible Lease Expiration Date July 31, 2023 Est. Lease Commencement Date April 2020 Lease Term 5 Years Est. Lease Expiration Date April 2030 Rental Increases 3% Annually Lease Term 10 Years Renewal Options 5, 5 Year Options Rental Increases 10% Every 5 Years Renewal Options 4, 5 Year Options Right of First Refusal 10 Days 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 5 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. © 2013 Marcus & Millichap ACT ID Z0070501 TENANTAERIAL OVERVIEWPHOTO THE HUMAN BEAN WWW.THEHUMANBEAN.COM 80+ LOCATIONS Starbucks With a passion for creating happy people and a love of coffee, The Human Bean opened its first drive-thru espresso stand in Ashland, Oregon, in 1998. The demand for convenient, quality coffee & espresso grew and soon after opening the first loca- tion in Ashland, the company expanded to surrounding cities in Southern Oregon. The Human Bean quickly established a repu- tation for having friendly and experienced baristas and offering the highest quality ingredients. The Human Bean has expanded to 80 locations in ten states, 67 of those being franchised locations and 13 being corporate locations. FRANCHISEE OVERVIEW The subject property on Scottsdale Rd will be the franchisee’s Fourth location in Arizona and Sixth total with two locations in Klamath Falls, Oregon. Additional locations have been signed in Tucson with more to come. This ownership group is the original franchisee with over 15 years’ experience with Human Bean. The three other Arizona locations the Franchisee has are 2005 N 19th Ave in Phoenix, 29 S Power Rd in Mesa, and 6502 N 16th St in Phoenix. 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 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 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 6 performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Z0070501 performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Z0070501 FRANCHISEEAERIAL PHOTO OVERVIEW THE HUMAN BEAN THE HUMAN BEAN OF PHOENIX BRIAN SHERRILL Brian has been a part owner of the Human Bean of Klamath Falls, Or (2 loca- The subject property on 19th Avenue will be the franchisee’s third location in tions) for the past 14 years. During this time he has been heavily involved with Arizona and fifth total with two locations in Klamath Falls, Oregon. Additional the daily operations of the business. Brian also worked for his parents (Terry and locations have been signed in Tucson, another one in Phoenix, and Tempe with Janet Sherrill) in management in the Arby’s restaurant for 5 years during the more to come. This ownership group is the original franchisee with over 15 mid 1990’s. He has also been a residential real estate appraiser for the last 14 years’ experience with Human Bean. years, and still works as an appraiser for his company, Klamath Appraisal, Inc. In addition to that, he has also owned and operated Anytime Fitness in Klam- ath Falls, Or for the last 7 years with his mother Janet Sherrill. Brian earned a OWNER BIOGRAPHIES Bachelor of Science in Business Administration from Southern Oregon University in 2000. Brian will be moving to Mesa, Arizona to run the new Human Bean in JANET SHERRILL Mesa. He also enjoys working in youth sports, and has served as an assistant Janet Sherrill is a 1/4th partner owner in The Human Bean of Arizona, Inc. She coach at Henley High School and Klamath Union High School, both located in has extensive business and restaurant experience over the last 40+ years. Klamath Falls, Or.