Representative Photo BUDDY’S PIZZA BRAND NEW 20 - YEAR TRIPLE - NET (NNN) SALE LEASEBACK

OFFERING MEMORANDUM 33605 Plymouth Road, Livonia, MI 48150 Confidentiality and Disclaimer

Marcus & Millichap hereby advises all prospective locations is an important consideration, it is not a thorough due diligence investigation. Marcus & Millichap purchasers of Net Leased property as follows: guarantee of future success. Similarly, the lease rate for has not made any investigation, and makes no warranty or some properties, including newly-constructed facilities or representation, with respect to the income or expenses The information contained in this Marketing Brochure has newly-acquired locations, may be set based on a tenant’s for the subject property, the future projected financial been obtained from sources we believe to be reliable. projected sales with little or no record of actual performance of the property, the size and square footage However, Marcus & Millichap has not and will not verify performance, or comparable rents for the area. Returns of the property and improvements, the presence or any of this information, nor has Marcus & Millichap are not guaranteed; the tenant and any guarantors may absence of contaminating substances, PCB’s or asbestos, conducted any investigation regarding these matters. fail to pay the lease rent or property taxes, or may fail to the compliance with State and Federal regulations, the Marcus & Millichap makes no guarantee, warranty or comply with other material terms of the lease; cash flow physical condition of the improvements thereon, or the representation whatsoever about the accuracy or may be interrupted in part or in whole due to market, financial condition or business prospects of any tenant, or completeness of any information provided. economic, environmental or other conditions. Regardless any tenant’s plans or intentions to continue its occupancy of tenant history and lease guarantees, Buyer is of the subject property. The information contained in this As the Buyer of a net leased property, it is the Buyer’s responsible for conducting his/her own investigation of all Marketing Brochure has been obtained from sources we responsibility to independently confirm the accuracy and matters affecting the intrinsic value of the property and believe to be reliable; however, Marcus & Millichap has completeness of all material information before the value of any long-term lease, including the likelihood not verified, and will not verify, any of the information completing any purchase. This Marketing Brochure is not a of locating a replacement tenant if the current tenant contained herein, nor has Marcus & Millichap conducted substitute for your thorough due diligence investigation of should default or abandon the property, and the lease any investigation regarding these matters and makes no this investment opportunity. Marcus & Millichap expressly terms that Buyer may be able to negotiate with a warranty or representation whatsoever regarding the denies any obligation to conduct a due diligence potential replacement tenant considering the location of accuracy or completeness of the information provided. All examination of this Property for Buyer. the property, and Buyer’s legal ability to make alternate potential buyers must take appropriate measures to verify use of the property. all of the information set forth herein. Any projections, opinions, assumptions or estimates used By accepting this Marketing Brochure you agree to release in this Marketing Brochure are for example only and do Marcus & Millichap Real Estate Investment Services and NON-ENDORSEMENT NOTICE not represent the current or future performance of this hold it harmless from any kind of claim, cost, expense, or property. The value of a net leased property to you liability arising out of your investigation and/or purchase Marcus & Millichap Real Estate Investment Services, Inc. depends on factors that should be evaluated by you and of this net leased property. (“M&M”) is not affiliated with, sponsored by, or endorsed your tax, financial and legal advisors. by any commercial tenant or lessee identified in this CONFIDENTIALITY AND DISCLAIMER marketing package. The presence of any corporation’s Buyer and Buyer’s tax, financial, legal, and construction logo or name is not intended to indicate or imply advisors should conduct a careful, independent The information contained in the following Marketing affiliation with, or sponsorship or endorsement by, said investigation of any net leased property to determine to Brochure is proprietary and strictly confidential. It is corporation of M&M, its affiliates or subsidiaries, or any your satisfaction with the suitability of the property for intended to be reviewed only by the party receiving it agent, product, service, or commercial listing of M&M, your needs. from Marcus & Millichap and should not be made and is solely included for the purpose of providing tenant available to any other person or entity without the written lessee information about this listing to prospective Like all real estate investments, this investment carries consent of Marcus & Millichap. This Marketing Brochure customers. significant risks. Buyer and Buyer’s legal and financial has been prepared to provide summary, unverified advisors must request and carefully review all legal and information to prospective purchasers, and to establish ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. financial documents related to the property and tenant. only a preliminary level of interest in the subject property. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT While the tenant’s past performance at this or other The information contained herein is not a substitute for a FOR MORE DETAILS. Table of Contents Investment Highlights 4 Financial Analysis & Investment Summary 5 Concept Overview 6-7 Surrounding Area 8 Location Overview 9 Property Photos 10 Surrounding Area Photos 11 Regional Map 12 Demographics 13 Investment Highlights

LOCATION LEASE TENANT

REAL ESTATE L E A S E T E N A N T / FUNDAMENTALS STRUCTURE GUARANTOR

✓ Major Retailers in Surrounding Area ✓ Brand New 20-Year Sale Leaseback ✓ Premier, Market-Leading Specialty Include: , Rite Aid, Pizza Brand Based in McDonald’s, Home Depot, Red ✓ Triple Net (NNN) Lease with Zero Landlord Responsibilities ✓ This Location Has Been in Operation Lobster, Taco Bell, and Target For the Past 35 Years ✓ Attractive Rental Increases | Strong ✓ Outstanding Traffic Counts | ✓ Hedge Against Inflation | Ten Percent Commitment to Remodel in the Next Interstate-96 and Plymouth Road | Three Years Combined 226,200 Vehicles a Day (10.00%) Every 5 Years ✓ Strong Corporate Guarantee and ✓ | 70+ Stores | ✓ Four (4) Tenant Renewal Periods of Excellent Unit-Level Economics Five (5) Years Each 500,000+ SF of Retail Space | History ✓ Buddy’s Boasts 14 Locations of Exceeding Class A Mall Sales Per Throughout the Detroit MSA and Is SF Numbers Rapidly Expanding Throughout ✓ Premier Location | Benefits from Excellent Positioning Less Than Four ✓ Serving The Original Detroit-Style Miles From Major Motorways I-96, I- Square Pizza, Made-From-Scratch 275, and MI-14 Soups, and Celebrated Antipasto Salads Since 1946

4 Financial Analysis & Investment Summary PURCHASE PRICE: $2,714,000 | CAP RATE: 6.25% | RENT: $169,625

THE OFFERING RENT SCHEDULE Purchase Price $2,714,000 Rent Escalation Lease Year(s) Annual Rent Monthly Rent CAP Rate 6.25% (%) Year 1 $169,625 $14,135 - Annual Rent $169,625 Year 2 $169,625 $14,135 - Price / SF $430 Year 3 $169,625 $14,135 - Rent / SF $26.89 Year 4 $169,625 $14,135 - Year 5 $169,625 $14,135 - Year 6 $186,588 $15,549 10.00% PROPERTY DESCRIPTION Year 7 $186,588 $15,549 - Property Buddy’s Pizza Year 8 $186,588 $15,549 - Property Address 33605 Plymouth Road Year 9 $186,588 $15,549 - City, State ZIP Livonia, MI 48150 Year 10 $186,588 $15,549 - Building Size (SF) 6,309 Year 11 $205,246 $17,104 10.00% Lot Size (Acres) 1.87 Year 12 $205,246 $17,104 - Year 13 $205,246 $17,104 - Type of Ownership Fee Simple Year 14 $205,246 $17,104 - Year 15 $205,246 $17,104 - Year 16 $225,771 $18,814 10.00% LEASE SUMMARY Year 17 $225,771 $18,814 - Property Type Net-Leased Restaurant Year 18 $225,771 $18,814 - Tenant / Guarantor Buddy’s Livonia / Buddy’s Holding LLC Year 19 $225,771 $18,814 - Lease Term 20 Years Year 20 $225,771 $18,814 - Lease Commencement Upon Close of Escrow Lease Expiration 20 Years from Close of Escrow Investment Summary Marcus & Millichap is pleased to present the exclusive listing for a Buddy’s Pizza Lease Term Remaining 20 Years located at 3305 Plymouth Road, Livonia, MI. The property consists of 6,309 Lease Type Triple Net (NNN) square feet of building space and is situated on roughly 1.87 acres of land. This Roof & Structure Tenant Responsible Buddy’s Pizza is subject to a 20-year absolute triple net (NNN) lease, which will Options to Renew Four (4), Five (5) Year Option Periods commence on the close of escrow. The base rent is $169,625 and will increase by ten percent every five years throughout the base term and in each of the Rental Increases 10.00% Every 5 Years four, five-year renewal options. 5 Concept Overview

About Buddy’s Pizza More than 72 years since the introduction of “The Original Detroit- Style Square Pizza”, and with 14 locations throughout , Buddy’s continues to serve Detroit’s original square pizza, made-from-scratch soups, and their celebrated antipasto salads. Over time, Buddy’s has added a variety of items to the menu that have kept up to date with on trend menu offerings such as multi grain crust, vegan options, and gluten-free pizzas. To continue pleasing the broad spectrum of clientele that visits the restaurant, Buddy’s has partnered with a local brewery to offer “Buddy Brew” and “Bocce IPA”, ale’s that satisfy the increasing demand for craft beer. Buddy’s Pizza continues to expand their concepts and ideas, and will broaden their footprint with 4+ new locations in 2019 and near term growth throughout the Midwest. Nationally Recognized Dining Experience Buddy’s has a multitude of accolades and high praise from well-known print and online media sources, strengthening its brand recognition and exposure to markets outside of the Metro Detroit area. It is recognized for its delicious pizza and memorable dining experience, winning awards year after year, and for their overwhelming charitable involvement, making Buddy’s a respected and celebrated brand in any community it joins. National Brand Presence “Buddy’s Pizza crust is one of the best in America.” – GQ voted Buddy’s top 15 best pizza in the country. “Buddy’s Pizza invented and perfected Detroit’s signature square pizza style” – Business Insider, March 2015 Rich Heritage | Destination Dining “Today, it carries on the legacy by capturing the hearts and taste buds of Detroiters and travelers alike.” – Paula Deen Magazine, April 2014 “The Detroit Staple has been around for 70 years, and you bet that next time I visit the Motor City, Buddy’s will be my first stop” – Oprah.com, August 2016 6 Concept Overview

About CapitalSpring  Founded in 2005, CapitalSpring is one of the most active private investors focused on the restaurant industry. $1.3 Billion + 100+ 4,000+  The firm currently manages assets in excess of $1.3 billion and has In Capital Restaurant Restaurant completed investments in the operations of over 50 different Invested Investments Locations restaurant brands and 4,000 restaurant locations. The team specializes in providing creative capital solutions to the branded restaurant industry.  As CapitalSpring’s strategy has broadened and their capital base has continued to flourish, they still remain one of the most active institutional investors exclusively dedicated to restaurant ventures.  CapitalSpring has recently acquired a controlling stake in Buddy’s Pizza in order to accelerate new store growth across the Midwest and expand the brand’s iconic footprint.  CapitalSpring has a large presence across the United States with offices in Nashville, Los Angeles, Atlanta, and .

7 Surrounding Area

PLYMOUTH ROAD ADTC: 24,000

8 Location Overview

This Buddy’s Pizza property is located at 33605 Plymouth Road in Livonia, Michigan. Livonia is a large suburb with an array of neighborhoods connected to the metropolitan area by freeways. Livonia is located less than two miles from the western city limits of Detroit.

SURROUNDING RETAIL & POINTS OF INTEREST The immediate area surrounding the subject property boasts a wide array of national and local retailers including: McDonald’s, Walmart, Target, Walgreens, Rite Aid, Taco Bell, and many others. In addition to these retailers, located within five and a half miles of this Buddy’s Pizza is Laurel Park Place, a 506,000 square foot upscale fashion mall featuring over 70 restaurants and stores, as well as the attached Livonia Marriott hotel. Livonia also features three shopping centers, & Livonia Marketplace, and Westland Center located two miles, two and a half miles, and six miles respectively, from this Buddy’s Pizza. Wonderland Village is anchored by national tenants such as Walmart and Target and Livonia Marketplace features a second Walmart, along with a Sears and Kohl’s. features more than 100 inline stores. There are also two colleges, and , located two and eight miles respectively, from the subject property that combine to bring over 18,000 students to the area each year.

TRAFFIC COUNTS & DEMOGRAPHICS The city of Livonia has a population of approximately 94,000 and has approximately 91,814 individuals residing within a three-mile radius of the property and 259,631 individuals within a five-mile radius. The corner of Plymouth Road and Farmington Road ADTC: 24,000 has an average daily traffic count of more than 24,000 vehicles. Plymouth Road is located less than a mile and a half from Interstate-96 which boasts a phenomenal average daily traffic count in Livonia of over 201,000 vehicles.

LIVONIA, MI Livonia is located in the western suburbs of Metro Detroit. The city is ideally located halfway between downtown Detroit and Ann Arbor. With great hotels, fantastic shopping and dining options, and easy access to all major freeways to move around the region, Livonia is the place to stay and play for many visitors to the Detroit metropolitan area. The city is just 20 to 30 minutes from the museums, professional sporting events, theaters and casinos of downtown Detroit. Another popular destination, the Henry Ford, which includes Greenfield Village, Henry Ford Museum and the Ford Rouge Factory Tour, is also just 15 to 20 minutes outside Livonia. 9 Property Photos

10 Surrounding Area Photos

11 Regional Map

12 Demographics MAJOR EMPLOYERS Employer # of Employees Ford 6,313 Medcart Specialty Pharmacy 5,014 5 Miles Kohlberg & Co LLC 3,029 Anchor Staffing Inc 2,000 Auto Workers AFL CIO 182 2,000 Robert Bosch LLC 1,641 3 Miles Garden City Hospital Foundation 1,500 St. Mary Mercy Gift Shop 1,500 AYC 1,400 Roush 1,255 1 Mile Spectrum Community Services 1,005 # of Employees based on 5 mile radius DEMOGRAPHICS Population 1 Mile 3 Miles 5 Miles 2022 Projection 6,515 91,404 258,838 2017 Estimate 6,558 91,814 259,631 2010 Census 6,675 93,723 265,050 2000 Census 6,937 97,681 274,967 Income Average $85,734 $71,690 $73,774 Median $68,510 $58,545 $59,191 Per Capita $34,771 $30,563 $30,757 Households 2022 Projection 2,657 39,053 108,605 2017 Estimate 2,645 38,900 107,827 2010 Census 2,691 39,709 110,086 2000 Census 2,699 40,338 111,285 Employment 2017 Daytime Population 12,762 102,858 265,787 2017 Unemployment 4.05% 4.30% 4.56% 2017 Median Time Traveled 25 25 26

13 EXCLUSIVE NET LEASE OFFERING

MI BROKER OF RECORD: Steve Chaben Marcus & Millichap MI: 6502387903