Representative Photo WENDY’S EXCLUSIVE NET - LEASE OFFERING OFFERING 1686 S Garfield Ave MEMORANDUM Traverse City, MI 49686 Confidentiality and Disclaimer Marcus & Millichap hereby advises all prospective purchasers of properties, including newly-constructed facilities or newly- income or expenses for the subject property, the future projected Net Leased property as follows: acquired locations, may be set based on a tenant’s projected financial performance of the property, the size and square sales with little or no record of actual performance, or footage of the property and improvements, the presence or The information contained in this Marketing Brochure has been comparable rents for the area. Returns are not guaranteed; the absence of contaminating substances, PCB’s or asbestos, the obtained from sources we believe to be reliable. However, tenant and any guarantors may fail to pay the lease rent or compliance with State and Federal regulations, the physical Marcus & Millichap has not and will not verify any of this property taxes, or may fail to comply with other material terms of condition of the improvements thereon, or the financial information, nor has Marcus & Millichap conducted any the lease; cash flow may be interrupted in part or in whole due to condition or business prospects of any tenant, or any tenant’s investigation regarding these matters. Marcus & Millichap makes market, economic, environmental or other conditions. Regardless plans or intentions to continue its occupancy of the subject no guarantee, warranty or representation whatsoever about the of tenant history and lease guarantees, Buyer is responsible for property. The information contained in this Marketing Brochure accuracy or completeness of any information provided. conducting his/her own investigation of all matters affecting the has been obtained from sources we believe to be reliable; intrinsic value of the property and the value of any long-term however, Marcus & Millichap has not verified, and will not verify, As the Buyer of a net leased property, it is the Buyer’s lease, including the likelihood of locating a replacement tenant if any of the information contained herein, nor has Marcus & responsibility to independently confirm the accuracy and the current tenant should default or abandon the property, and Millichap conducted any investigation regarding these matters completeness of all material information before completing any the lease terms that Buyer may be able to negotiate with a and makes no warranty or representation whatsoever regarding purchase. This Marketing Brochure is not a substitute for your potential replacement tenant considering the location of the the accuracy or completeness of the information provided. All thorough due diligence investigation of this investment property, and Buyer’s legal ability to make alternate use of the potential buyers must take appropriate measures to verify all of opportunity. Marcus & Millichap expressly denies any obligation property. the information set forth herein. to conduct a due diligence examination of this Property for Buyer. By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it NON-ENDORSEMENT NOTICE Any projections, opinions, assumptions or estimates used in this harmless from any kind of claim, cost, expense, or liability arising Marketing Brochure are for example only and do not represent out of your investigation and/or purchase of this net leased Marcus & Millichap Real Estate Investment Services, Inc. the current or future performance of this property. The value of a property. (“M&M”) is not affiliated with, sponsored by, or endorsed by any net leased property to you depends on factors that should be commercial tenant or lessee identified in this marketing package. evaluated by you and your tax, financial and legal advisors. CONFIDENTIALITY AND DISCLAIMER The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or Buyer and Buyer’s tax, financial, legal, and construction advisors The information contained in the following Marketing Brochure is endorsement by, said corporation of M&M, its affiliates or should conduct a careful, independent investigation of any net proprietary and strictly confidential. It is intended to be reviewed subsidiaries, or any agent, product, service, or commercial listing leased property to determine to your satisfaction with the only by the party receiving it from Marcus & Millichap and should of M&M, and is solely included for the purpose of providing suitability of the property for your needs. not be made available to any other person or entity without the tenant lessee information about this listing to prospective written consent of Marcus & Millichap. This Marketing Brochure customers. Like all real estate investments, this investment carries significant has been prepared to provide summary, unverified information risks. Buyer and Buyer’s legal and financial advisors must request to prospective purchasers, and to establish only a preliminary ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE and carefully review all legal and financial documents related to level of interest in the subject property. The information CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE the property and tenant. While the tenant’s past performance at contained herein is not a substitute for a thorough due diligence DETAILS. this or other locations is an important consideration, it is not a investigation. Marcus & Millichap has not made any investigation, guarantee of future success. Similarly, the lease rate for some and makes no warranty or representation, with respect to the SPECIAL COVID-19 NOTICE All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be 1686 S Garfield Ave comfortable with and rely solely on their own projections, analyses, and decision-making. Traverse City, MI 49686 Table of Contents Investment Highlights 4 Financial Analysis & Investment Summary 5 Concept Overview 6 – 7 Surrounding Area 8 Location Overview 9 Regional Map 10 Demographics 11 Investment Highlights LOCATION LEASE TENANT REAL ESTATE L E A S E T E N A N T / FUNDAMENTALS STRUCTURE GUARANTOR ✓ Dense Retail Corridor | Big Lots, Play ✓ Brand New 20-Year Sale Leaseback ✓ Meritage Hospitality Group is an It Again Sports, Volvo, Audi, Experienced 337+ Unit Operator Volkswagen, Sally Beauty Supply, ✓ Triple Net (NNN) Lease with Zero Landlord Responsibilities ✓ Premier, National Growing Franchise Taco Bell, Papa Johns, Jimmy Johns, with Operations in 16 States Qdoba, 7-Eleven ✓ Attractive Rental Increases | Lesser of ✓ Expansion into Key Markets ✓ Strong Traffic Counts | S Garfield Ave Change in CPI or One and a Quarter and W South Airport Rd | Average Percent (1.25%) Annually Starting in ✓ Proven Track Record with Operational Daily Traffic Counts of Approximately Year 3 History of Multiple High-Volume 37,059 and 16,716, Respectively Locations throughout the Country ✓ Six (6) Tenant Renewal Periods of Five ✓ Large Academic Presence | (5) Years Each ✓ Public Company Guarantee (MHGU) Northwestern Michigan College is ✓ Strong Brand Recognition | Wendy’s Located Just Over Three-Miles from is the World’s Number Three the Subject Property | Total Hamburger Chain Enrollment of Approximately 4,000 Students ✓ Founded in 1986 4 Financial Analysis & Investment Summary PURCHASE PRICE: $2,184,466 | CAP RATE: 5.15% | RENT: $112,500 THE OFFERING RENT SCHEDULE Purchase Price $2,184,466 Lease Year(s) Annual Rent Monthly Rent Rent Escalation CAP Rate 5.15% Year 1 $112,500 $9,375 - Year 2 $112,500 $9,375 - Annual Rent $112,500 Year 3 $113,906 $9,492 1.25% Year 4 $115,330 $9,611 1.25% PROPERTY DESCRIPTION Year 5 $116,772 $9,731 1.25% Year 6 $118,231 $9,853 1.25% Property Wendy’s Year 7 $119,709 $9,976 1.25% Property Address 1686 S Garfield Ave Year 8 $121,206 $10,100 1.25% City, State ZIP Traverse City, MI 49686 Year 9 $122,721 $10,227 1.25% Year 10 $124,255 $10,355 1.25% Year Built 2021 Year 11 $125,808 $10,484 1.25% Building Size (SF) 2,584 SF Year 12 $127,380 $10,615 1.25% Lot Size (Acres) 0.83 Year 13 $128,973 $10,748 1.25% Type of Ownership Fee Simple Year 14 $130,585 $10,882 1.25% Year 15 $132,217 $11,018 1.25% Year 16 $133,870 $11,156 1.25% LEASE SUMMARY Year 17 $135,543 $11,295 1.25% Year 18 $137,238 $11,436 1.25% Property Type Net-Leased Restaurant Year 19 $138,953 $11,579 1.25% Ownership Public (OTCQX: MHGU) Year 20 $140,690 $11,724 1.25% Tenant / Guarantor Meritage Hospitality Group Investment Summary Lease Term 20 Years Marcus & Millichap is pleased to present the exclusive listing for a Wendy’s located Lease Commencement Day Following Close of Escrow at 1686 S Garfield Ave in Traverse City, MI. The property consists of 2,584 square Lease Expiration 20 Years from Close of Escrow feet of building space and is situated on approximately 0.83 acres of land. Lease Term Remaining 20 Years The tenant will enter into a brand new, 20-year triple-net (NNN) lease with Lease Type Triple Net (NNN) absolutely no landlord responsibilities upon the day following the close of escrow.