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Vibracoustic South Haven, MI Absolute NNN Lease Confidential Offering Memorandum Executive Summary The Offering Jones Lang LaSalle (“JLL”) is pleased to offer for sale the fee-simple interest in a single-tenant, industrial and office property (the “Property” or “Asset”) occupied by Vibracoustic (the “Tenant” or “Company”). Located 60 miles southwest of Grand Rapids and 60 miles north of South Bend, the Property’s surrounding area benefits greatly from the proximity to Interstate 196 and Michigan state highways 43 and 140. The Property is subject to a triple net lease with minimal landlord responsibilities and 2.0 percent increases annually. Situated on 5.37 acres, the 174,842 square foot Asset serves as a and ‘mission critical’ headquarters and product development facility for Vibracoustic, a leading developer and manufacturer of innovative vibration and control components for passenger and commercial automotive vehicles. A highly successful tenant with highly likelihood of future lease renewal makes this Offering an opportunity to acquire an Asset with desirable net lease investment fundamentals. NNN Lease with Annual Increases . The Property is subject to a triple net lease with minimal landlord responsibilities and 2.0 percent increases annually. The tenant currently has 4.8 years remaining in the primary term. The likelihood of renewal is high, given the tenant’s current ‘mission critical’ use of the Asset and committed presence within the continental United States. Successful Tenant with Increasing Market Share . Founded in 2012, Vibracoustic has achieved extensive success in the automotive technology industry. Possessing an 18 percent market share in a heavily populated industry space, Vibracoustic has become a global and market technology leader in vibration control components and modules. Moreover, Vibracoustic has reported strong growth in recent years, outpacing the market with revenue jumping to EUR 1.9 billion, a 9.1 percent increase over the prior year. Free and Clear of Existing Financing . The Property will be transferred free and clear of debt. Investors will be able to capitalize on today’s attractive debt markets and secure highly aggressive and favorable financing. Numerous floating and fixed rate financing options will be accretive to investment yield expectations. Easy Access to Multiple Major State Routes . The Property’s surrounding area benefits greatly from proximity to Michigan highways 43 and 140, as well as Interstate 196 located to the east. As major modes of transportation for those traveling within the region, the Property is well-positioned for increased vehicular exposure at the intersection of Aylworth Avenue and Michigan highway 140. Seamless transportation to nearby Grand Rapids, South Bend, Kalamazoo, and countless other cities in the region drive value in the subject Property and its general vicinity. Proprietary and confidential 2 Executive Summary Property Overview Address 400 Aylworth Ave South Haven, MI 49090 Adjacent to Leading Regional Healthcare Network Purchase Price / PSF $4,164,000 / $63 Cap Rate 8.75% . The Asset is located proximate to one of Bronson Healthcare ’s primary campuses, and its medical workforce provides ongoing economic stimulation to the city of South NOI / PSF $364,347 / $5.52 Haven and neighboring Southwestern Michigan townships. Tenant Vibracoustic Access to South Haven Area Regional Airport Building Size 66,000 SF . Situated four miles south of the subject Property, the South Haven Area Regional Land Size 5.37 Acres Airport services many townships located within Southwestern Michigan. With over 40 aircrafts based in the airport and 75 aircraft operations occurring daily, the South Ownership Interest Fee Simple Haven Area Regional Airport allows for commercial activity to be supported by Built 1960’s national travel accessibility. Docks 1 Ext. / 2 DID Parking 150 Spaces +/- Lease Type NNN LL Responsibilities 100% of the capital expenditure (less $25,000) is amortized over a 10 year period. Tenant reimburses LL in monthly installments through additional rent of that amount. After expiration, LL covers the remaining capital expenditure balance. Commencement Date 5/29/2012 Expiration Date 5/31/2022 Remaining Lease Term* 4.8 years Rental Increases 2.0% annual increases Renewal Options 1 x 5-Years *As of 8/1/2017 Proprietary and confidential 3 Floor Plan Proprietary and confidential 4 Immediate Area Mapping Lake South Haven Michigan High School 630+ enrollment Aylworth Ave. Strategically located between Lake Michigan and Interstate 196 (1.8 Van Buren County Industrial Submarket miles to the nearest entrance/exit ramp) at the junction of Kalamazoo Street and Aylworth Avenue; the location offers regional access to Category Statistic Chicago and Detroit. # Industrial Buildings 68 Market Size (SF) 2,422,500 SF . Positioned along Lake Michigan and a 2 hour drive from downtown Total Vacancy 4.2% Chicago, South Haven is a major regional tourist draw due to its Available Spaces / SF 10 / 308,900 SF recreational harbor and beaches. Average Rent PSF $3.26 PSF 12 Month Absorption (SF) 164,600 SF Proprietary and confidential 5 Tenant Overview Vibracoustic Overview . Vibracoustic (the “Company”) is the global market leader in the field of automotive vibration control technology. The company was founded in 2012 as a joint venture between Freudenberg SE and Trelleborg AB. The Company supplies virtually every passenger vehicle manufacturer, commercial vehicle manufacturer, and tier 1 supplier in the world with components that clearly and noticeably boost the comfort on board. Vibracoustic possesses a global R&D network that enables its engineers to develop unparalleled vibration damping technologies, and the new insights gained into manufacturing and materials engineering are the key to its superior products. K e y B u s i n e s s H i g h l i g h t s . Vibracoustic has become a global and market technology leader in vibration control components and modules in the automotive industry, with an 18 percent market share. Vibracoustic is globally present in 19 countries with over 43 sites located in Europe, North and South America, Asia and Africa. The company was founded in 2012 as a joint venture between Freudenberg SE and Trelleborg AB. In April 2016, Trelleborg had sold its shares in Vibracoustic to Freudenberg. Vibracoustic has reported strong growth in recent years, outpacing the market with revenue jumping to EUR 1.9 billion, a 9.1 percent increase over the prior year. Company Overview Company Vibracoustic Year Founded 2012 Type Subsidiary Parent The Freudenberg Group (100% Ownership) Parent Credit Rating A3 / Stable (Moody’s – Germany) Industry Automotive Headquarters Weinheim, Germany 2015 Revenue EUR 1.9 billion Employees ~10,000 Proprietary and confidential 6 South Haven Overview South Haven Overview . Located 60 miles southwest of Grand Rapids and 60 miles north of South Bend, the city of South Haven is serviced by Interstate 196 and Michigan highways 43 and 140. The city’s charming beach town nature offers lakeside recreation, family-oriented nightlife and entertainment, and various nature trails. At the mouth of the Black River, South Haven’s founding were predominantly as a port city. During settlement, major ship lines stopped there, both passenger and freight. In the early 1900s South Haven became a resort town, sometimes referred to as "The Catskills of the Midwest". It is the western terminus of the Kal-Haven Trail, popular with bicyclists and snowmobilers. Nearby are Van Buren State Park and the Van Buren Trail State Park. Location Highlights Access to South Haven Area Regional Airport Demographics 1-MILE 3-MILE 5-MILE . Situated four miles south of the subject Property, the South Haven Area Regional Airport services many townships located within Southwestern Michigan. With over 40 aircrafts RADIUS RADIUS RADIUS based in the airport and 75 aircraft operations occurring daily, the South Haven Area POPULATION 2021 Projection 3,277 8,218 11,625 Regional Airport allows for commercial activity to be supported by national travel 2016 Estimate 3,260 8,173 11,586 accessibility. 2016 Number of Households 1,413 3,34 4,869 2016 - 2021 Projected Growth 0.1% 0.1% 0.1% Adjacent to Leading Regional Healthcare Network Age 0 - 14 17.7% 17.1% 17.5% . The Asset is located proximate to one of Bronson Healthcare ’s primary campuses, and its Age 15 - 24 11.0% 10.7% 11.2% medical workforce provides ongoing economic stimulation to the city of South Haven and Age 25 - 44 21.3% 20.6% 21.1% Age 45 - 64 29.1% 29.4% 29.6% neighboring Southwestern Michigan townships. Age 65+ 21.0% 22.2% 20.6% Easy Access to Multiple Major State Routes ESTIMATED HH INCOME Less than $35,000 38.8% 40.1% 39.7% . The Property’s surrounding area benefits greatly from proximity to Michigan highways 43 $35,000 - $49,999 17.6% 17.1% 17.0% and 140, as well as Interstate 196 located to the east. As major modes of transportation $50,000 - $74,999 17.1% 16.6% 17.0% for those traveling within the region, the Property is well-positioned for increased $75,000 - $99,999 11.0% 9.8% 10.5% vehicular exposure at the intersection of Aylworth Avenue and Michigan highway 140. More than $100,000 15.5% 16.4% 15.9% Average Estimated HH Income $58,208 $60,554 $60,500 Seamless transportation to nearby Grand Rapids, South Bend, Kalamazoo, and countless Median HH Income $43,261 $42,410 $42,931 other cities in the region drive value in the subject Property and its general vicinity. Proprietary and confidential 7 Property Photography Proprietary and confidential 8 Property Photography Proprietary and confidential 9 Property Photography Proprietary and confidential 10 Property Photography Proprietary and confidential 11 Property Photography Proprietary and confidential 12 Property Photography Proprietary and confidential 13 JLL Contacts Investment Sales Contacts: Dwight Stephenson Eric Suffoletto Alex Sharrin +1 312 228 2014 +1 312 228 3254 +1 312 228 3197 [email protected] [email protected] [email protected] Broker of Record: Jason Trombley +1 312 228 3753 [email protected] In-State Licensee: MI License #6501383233 www.jllproperty.us/net-lease © 2017 Jones Lang LaSalle IP, Inc.