CHICK-FIL-A GROUND LEASE CICERO, (SYRACUSE MSA)

OFFERING MEMORANDUM CHICK-FIL-A CICERO, NEW YORK (SYRACUSE MSA)

EXCLUSIVELY LISTED BY

DUSTIN JAVITCH CRAIG FULLER Senior Associate Senior Vice President Investments Net Leased Properties Group Senior Director, National Retail Group CLEVELAND CLEVELAND Phone: (216) 264-2025 Phone: (216) 264-2043 Fax: (614) 474-1696 Fax: (614) 474-1696 [email protected] [email protected] License: OH SAL.2012000193 License: OH SAL.2008001551

SCOTT WILES ERIN PATTON Senior Vice President Investments Senior Vice President Investments Senior Director, National Retail Group Senior Director, National Retail Group CLEVELAND COLUMBUS Phone: (216) 264-2026 Phone: (614) 360-9035 Fax: (614) 474-1696 Fax: (614) 474-1696 [email protected] [email protected] License: OH SAL.2005013197 License: OH SAL.2004010274

OFFICES NATIONWIDE AND THROUGHOUT CANADA WWW.MARCUSMILLICHAP.COM INVESTMENT OVERVIEW INVESTMENT HIGHLIGHTS

Marcus & Millichap is pleased to present a brand new construction ►► Brand New Construction Chick-fil-A in Syracuse MSA | Cicero, NY is 10 5,000-square foot Chick-fil-A with drive-thru located in Cicero Miles from Downtown Syracuse

CHICK-FIL-A // PROPERTY ANALYSIS (Syracuse MSA), New York. Chick-fil-A signed a rare twenty-year ►► Absolute NNN Ground Lease with 20 Year Lease Term | Zero absolute NNN ground lease featuring ten percent (10%) rental Landlord Responsibilities increases every five years during the initial term and eight, 5-year renewal options. The lease is guaranteed by Chick-fil-A, Incorporated ►► 10 Percent Rent Bumps Every Five Years in Initial Term and who registered $8 billion in revenue in 2016 and operates more than Renewal Options 2,100 locations. ►► Outparcel to Home Depot and Directly Next to Newly Proposed Starbucks

The site is located as an Outparcel to a Home Depot and directly next ►► Strong Visibility and Access to 26,820 Vehicles Per Day Along to a soon to be constructed Starbucks. It is located directly along Brewerton Road Brewerton Road, a highly trafficked thoroughfare which sees more ►► Corporate Guaranty | 2,100+ Locations with $8 Billion in Revenue than 28,600 vehicles per day. This property benefits from being in 2016 a half mile from the Interstate 481, a major east-west highway in Syracuse which sees more than 51,200 vehicles per day. The site ►► Dense Retail Corridor | Outparcel to Home Depot | Next to Wegmans is surrounded by major retailers including Home Depot, Wegmans, Supermarket | More Than 2.1 Million Square Feet of Retail Within Lowe’s, Price Chopper, Marshalls and Panera. The property sits One Mile Radius a building away from the Entrance to Driver’s Village; New York ►► Strong Demographic Area | More Than 85,288 Residents With an States only automotive megacenter featuring over 20 car franchises Average Household Income Greater Than $75,179 in the Five Mile including Porsche, BMW, Lexus, Audi and many more. Radius

Cicero is located in Northern Onondaga County roughly 10 miles ►► Half of a Mile from Interstate-481 | Major East-West Highway with north of downtown Syracuse. Major highways including U.S. Route More Than 51,250 Vehicles Per Day 11, Interstate 81, Interstate 481, and New York State Route 31 all pass through Cicero.

3 SHORT-RANGE RETAILER AERIAL CHICK-FIL-A // PROPERTY ANALYSIS

4 EXECUTIVE SUMMARY

CHICK-FIL-A OFFERING SUMMARY Offering Price $2,750,000 7932 Brewerton Road Cap Rate 4.00% Cicero, NY, 13039 (Syracuse MSA) Annual Rent Years 1-10 $110,000 Gross Leasable Area (GLA) 5,000 SF Price/SF (GLA) $550.00 Year Built/Renovated 2018 CHICK-FIL-A // PROPERTY ANALYSIS Lot Size 1.19 Acres Occupancy 100%

LEASE SUMMARY Tenant Chick-Fil-A Lease Type Absolute NNN Ground Lease Roof and Structure Tenant Ownership Private Lease Guarantor Chick-Fil-A, Inc. Original Lease Term 20 Years Rent Commencement Date 01/02/2018 RENT SCHEDULE Estimated Lease Expriation Date 01/31/2038 Base Term Annual Rent Monthly Rent CAP Rate Remaining Lease Term 20 Years Years 1-5 $110,000.00 $9,166.67 4.00% Renewal Options Eight, 5-Year Years 6-10 $121,000.00 $10,083.33 4.40% Rent Increases 10% Every 5 Years Years 11-15 $133,100.00 $11,091.67 4.84% Option to Terminate None Years 16-20 $146,410.00 $12,200.83 5.32% Option to Purchase None

Option Terms Annual Rent Monthly Rent CAP Rate Right of First Offer Yes, 15-Days Written Notice 1st Option: Years 21-25 $161,051.00 $13,420.92 5.86% DEMOGRAPHIC SUMMARY 2nd Option: Years 26-30 $177,156.10 $14,763.01 6.44% 1-Mile 3-Miles 5-Miles 3rd Option: Years 31-35 $194,871.71 $16,239.31 7.09% 2017 Population 5,309 41,926 85,288 4th Option: Years 36-40 $214,358.88 $17,863.24 7.79% 2022 Population Projection 5,288 43,333 87,761 5th Option: Years 41-45 $235,794.77 $19,649.56 8.57% 2017 Households 2,180 17,273 36,400 6th Option: Years 46-50 $259,374.25 $21,614.52 9.43% 2022 Households Projection 2,202 17,984 37,762 7th Option: Years 51-55 $285,311.67 $23,775.97 10.37% Average Household Income $74,256 $78,820 $75,179 8th Option: Years 56-60 $313,842.84 $26,153.57 11.41% Median Household Income $59,975 $65,564 $61,044 5 TENANT OVERVIEW & PROPERTY DETAILS

THE OFFERING Tenant Chick-Fil-A

CHICK-FIL-A // PROPERTY ANALYSIS Property Address 7932 Brewerton Road Cicero, NY, 13039

SITE DESCRIPTION Parking 55 Spaces Available Topography Level Number of Tax Parcels One Parcel Number 043.-01-10.2 Atlanta-based Chick-fil-A, Inc. is a family owned and LEASE RESPONSIBILITIES privately held restaurant company founded in 1946. Chick- Roof Tenant Responsibility fil-A is the nation’s largest quick-service chicken restaurant Structure Tenant Responsibility chain renowned for its pioneering innovations and delicious Parking Lot Tenant Responsibility products--including the ever-popular Chick-fil-A Chicken HVAC Tenant Responsibility Plate Glass & Doors Tenant Responsibility Sandwich. Chick-fil-A serves freshly prepared food in more Utilities Tenant Responsibility than 2,200+ restaurants in 43 states and Washington, D.C. Real Estate Taxes Tenant Responsibility Chick-fil-A system sales exceeded $8 billion in 2016, which Property Insurance Tenant Responsibility marks 49 consecutive years of sales growth. Chick-fil-A Liability Insurance Tenant Responsibility ranked first for customer satisfaction in the Limited Service Common Area Maintenance Tenant Responsibility

Restaurants industry according to the 2015 American TENANT OVERVIEW Customer Satisfaction Index and received the highest ACSI Ownership Private score ever in the industry. The company was also recognized Estimated Sales Volume $8 Billion (2016) Average Annual Sales Per Unit $3.5 - $4.4 Million* in 2015 as America’s “Top Chicken Restaurant Brand” by Number of Locations 2,200+ The Harris Poll and the only restaurant brand named to the Headquartered College Park, GA 106 Top 10 “Best Companies to Work For” by 24/7 Wall Street. *Depending on source (QSR Magazine or Nation’s Restaurant News) LONG-RANGE RETAILER AERIAL CHICK-FIL-A // PROPERTY ANALYSIS

7 REGIONAL MAP CHICK-FIL-A // PROPERTY ANALYSIS CHICK-FIL-A

8 SITE PLAN CHICK-FIL-A // PROPERTY ANALYSIS

9 DEMOGRAPHICS HIGHLIGHTS CHICK-FIL-A // MARKET OVERVIEW

85,288 $78,820 POPULATION WITHIN 5 MILES AVERAGE HOUSEHOLD INCOME 3 MILE RADIUS

0.23% 2.89% POPULATION GROWTH SINCE 2010 PROJECTED POPULATION GROWTH IN 5 MILE RADIUS OVER NEXT 5 YEARS IN A 5-MILE RADIUS

10 UNIT TYPE 1 MILE 3 MILES 5 MILES HOUSEHOLDS BY INCOME 1 MILE 3 MILES 5 MILES

2017 Estimate 2017 Estimate 5,309 41,926 85,288 Total Population $150,000 or More 6.1% 7.1% 6.7% 2022 Projection $125,000 - $149,999 5.8% 6.6% 5.9% 5,288 43,333 87,761 Total Population $100,000 - $124,999 12.5% 11.5% 10.4% 2010 Census $75,000 - $99,999 14.9% 17.1% 15.7% 5,374 42,058 85,084 Total Population $50,000 - $74,999 20.9% 21.9% 21.7% Projected Growth 2017-2022 $35,000 - $49,999 12.3% 12.3% 13.8% 0% 3.35% 2.89% Total Population $25,000 - $34,999 10.3% 8.5% 9.9% Growth 2010-2017 Under - $25,000 17.3% 15.1% 15.8% 0% 0% 0.23% Total Population CHICK-FIL-A // MARKET OVERVIEW Average Household Income $74,256 $78,820 $75,179 Median Household Income $59,975 $65,564 $61,044

HOUSEHOLDS BY INCOME 1 MILE 3 MILES 5 MILES

Population By Age 2017 Estimate Total Population 5,309 41,926 85,288 Under 20 Years 25.2% 25.0% 23.9% 3.74% 20 - 24 Years 5.9% 5.2% 5.4% 25 - 34 Years 12.8% 12.3% 14.1% PROJECTED HOUSEHOLD GROWTH 35 - 44 Years 12.4% 13.2% 12.7% OVER NEXT 5 YEARS IN A 5-MILE RADIUS 45 - 54 Years 14.4% 15.2% 14.5% 55 - 64 Years 14.0% 13.8% 13.6% 65+ Years 15.3% 15.3% 15.8% Median Age 40.0 40.7 40.0 HOUSEHOLDS 1 MILE 3 MILES 5 MILES

2017 Estimate Population 25+ by Education Level 2,180 17,273 36,400 Total Households 2017 Estimate Population Age 25+ 3,655 29,285 60,237 2022 Projection Elementary (0-8) 1.9% 1.4% 1.4% 2,202 17,984 37,762 Total Households Some High School (9-11) 5.9% 4.9% 5.1% 2010 Census High School Graduate (12) 32.5% 30.4% 30.7% 2,191 17,189 36,010 Total Households Associates Degree Only 15.2% 14.0% 13.5% Growth 2017-2022 Bachelors Degree Only 17.9% 19.1% 18.7% 1.0% 4.1% 3.74% Total Households Graduate Degree 8.5% 10.1% 10.3% Growth 2010-2017 Some College, No Degree 17.6% 19.4% 19.7% 0% 0.48% 1.08% Total Households Owner Occupied Population by Gender 1,622 13,391 25,186 Total Households 2017 Estimate Total Population 5,309 41,926 85,288 Renter Occupied Female Population 53.1% 51.5% 51.6% 484 3,219 9,529 Total Households Male Population 46.9% 48.5% 48.4% 11 MARKET OVERVIEW

SYRACUSE OVERVIEW

The Syracuse metro is the economic and educational hub of . The city of Syracuse is the county seat of Onondaga County and is

CHICK-FIL-A // MARKET OVERVIEW the fifth most populous city in the state of New York. The region’s top employers are primarily in education and the service industry. Over METRO HIGHLIGHTS 665,000 residents comprise 265,000 households across three counties: Oswego, Onondaga and Madison. HIGHER EDUCATION With nearly 20,000 students, Syracuse University is a private research university with an estimated annual economic impact of about $2.1 billion.

LIFE-SCIENCE INDUSTRY Employers comprise industries within life sciences, education, military support, finance and back office, and environmental systems.

CULTURAL & RELIGIOUS HEADQUARTERS The Diocese of Syracuse is a Catholic diocese headquartered in Syracuse. It serves seven counties of Central and South Central New York State with 129 parishes and 22 schools. ECONOMY

. The Syracuse area has few extremely large employers, but rather many smaller ones, which provides for a certain amount of stability. Additionally, eight of the area's top 11 employers are in education or the service industry, which tend to be much more stable during economic downturns. . SUNY Upstate Medical University in Syracuse, New York, is the only academic medical center in Central New York. It is also the region's largest employer with 9,460 employees. . Lockheed’s Salina plant is one of the larger private local employers and primarily develops and produces radar, sonar and other electronic warfare technology for the U.S. military.

DEMOGRAPHICS

2016 2016 2016 2016 MEDIAN POPULATION: HOUSEHOLDS: MEDIAN AGE: HOUSEHOLD INCOME: 660K 261K 39.3 $52,300 Growth Growth U.S. Median: U.S. Median: 2016-2021*: 2016-2021*: 0.9% 1.5% 37.7 $57,200 12 NON-ENDORSEMENT & DISCLAIMER NOTICE

CONFIDENTIALITY & 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved.

NON-ENDORSEMENT 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. CHICK-FIL-A

EXCLUSIVELY LISTED BY

DUSTIN JAVITCH CRAIG FULLER ERIN PATTON SCOTT WILES Senior Associate Senior Vice President Investments Senior Vice President Investments Senior Vice President Investments Net Leased Properties Group Senior Director, National Retail Group Senior Director, National Retail Group Senior Director, National Retail Group CLEVELAND CLEVELAND COLUMBUS CLEVELAND Phone: (216) 264-2025 Phone: (216) 264-2043 Phone: (614) 360-9035 Phone: (216) 264-2026 Fax: (614) 474-1696 Fax: (614) 474-1696 Fax: (614) 474-1696 Fax: (614) 474-1696 Email: [email protected] Email: [email protected] Email: [email protected] Email: [email protected] License: OH SAL.2012000193 License: OH SAL.2008001551 License: OH SAL.2004010274 License: OH SAL.2005013197