Bob Evans 8700 Midlothian Turnpike Richmond, Virginia, 23235

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OFFERING MEMORANDUM EXCLUSIVE NET – LEASE OFFERING CONFIDENTIALITY AND DISCLAIMER

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

Investment Overview Investment Highlights Tenant Overview Private Equity Sponsor Financial Analysis Financial Overview Lease Summary Property Overview Location Overview Surrounding Area Map Property Photo Surrounding Property Photos Local Map Regional Map

Demographics Population Income Employment Representative Photo

FINANCIAL OVERVIEW Offering Terms Investment Highlights Price NOI CAP Rate ➢ Attractive Rent Escalations |Two Percent Annually $982,222 $66,300 6.75% ➢ A 20 Year Triple-Net (NNN) Lease ➢ Corporate Tenant; Lease Backed by Roughly 500 Corporate Financial Summary Locations

Property Name Bob Evans Restaurants ➢ Strong Real Estate Characteristics: Dense Retail Corridor 8700 MIDLOTHIAN TPKE Location ➢ Inherent Value: Rent Per Square Foot at or Below Market, Low RICHMOND, VA Price $982,222 Price Per Square Foot Compared to National Average CAP Rate 6.75% NOI $66,300 Investment Overview Rent Per SF $12.85 Marcus & Millichap is pleased to present the exclusive listing for a Price Per SF $190 Bob Evans Property. The property consists of approximately 5,158 Building Size 5,158 sq ft square feet of building space and is situated on approximately 0.45 Lot Size 0.45 acres acres of land.

Date Opened April-1990 The property is subject to a 20-year triple net (NNN) lease with Last Remodel March-2014 approximately 19 years remaining. The lease commenced on April 28, 2017. The current rent is $66,300 and there are two percent annual rental increases. The increases will continue through the six, five-year tenant renewal options. The tenant is a newly formed entity consisting of all Bob Evans Restaurants. Tenant has the right to terminate this lease at the five year anniversary of the effective date with 360 days notice to Landlord of exercise of termination.

Bob Evans Restaurants was started more than 60 years ago with a single restaurant in Rio Grande, Ohio. The concept has since grown to roughly 500 family restaurants in approximately 18 different states. Their wide variety of menu options appeals to a wide demographic, whether its breakfast, lunch, or dinner Bob Evans has something for everyone. Bob Evans Restaurants generated over INVESTMENT HIGHLIGHTS $900 million in sales during fiscal year 2016.

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 performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap 5 Services information This information is a service and bears has mark been all and friends like friends and family.” “Westrangerstreat like friends of risk secured Marcus for any & from Millichap inaccuracies sources Real we . Any Estate believe projections, Investment to be reliable, opinions, Services, but assumptions Inc we . © make BOB EVANSBOB RESTAURANTS 2017 no or Marcus representations estimates & Millichap used - herein or Bob Bob Evans warranties, are for example expressed purposes or implied, only as and to do the not accuracy represent of ➢ ➢ ➢ ➢ the the information current grownfrom a 12 iconicAmerican brand that has Founded in1948, Bob Evansan is restaurants recently remodeled. maintained restaurants Strong realestate profilewith well atmosphere at an affordableprice. comfortfood in afamily friendly Craveable,fresh offering of carryout(16%). business 37%, 31%) with a Dinner: large dayparts (Breakfast: 32%, Lunch: Restaurants operateacross 3 ~500 units. restaurant to and $900M in sales - or premisebusiness. Wellfor positioned growing off future . References performance to square of the footage property or age . Marcus are approximate & Millichap - stool, 24 hour . Real Buyer Estate must Investment verify the → 100% of100% - -

6 TENANT OVERVIEW BOB EVANS PROFILE

Strong Asset Strong Tenant Significant Experience

➢Strong real estate profile, all ➢Scale restaurant brand with ➢GGC is the most active private units have been recently $900M in sales and ~500 units equity buyer of full service remodeled. with regional density in Ohio. restaurant companies.

➢Compelling unit-level ➢Participates in the attractive and ➢History of growing same fundamentals. growing family dining segment restaurant sales & margins have which has consistently led to successful outcomes: 60%+ outperformed the casual dining IRRs across GGC restaurant segment. transactions.

➢Iconic brand with strong ➢CEO Saed Mohseni has significant awareness / NPS. experience in casual dining, growing and taking two restaurant ➢Strong balance sheet with no companies public; will lead a new third party debt & $75M of cash but experienced management

at close. team. ATTRACTIVE ATTRACTIVE PROFILE

any Denny's 1,708 & from Dinner Lunch Millichap inaccuracies 32% 37% 31% IHOP 1,675 sources Olive Garden 843 Real Significant Scale we . Outback Steakhouse 755 Any Estate believe

projections, Red Lobster 704 Investment

to Cracker Barrell 640 be

reliable, Ruby Tuesday 575 900M 900M in opinions, Services, PremiseMix On Off Red Robin 546 but assumptions -

- TGI Fridays 527 84% 16% Inc we premise premise

. ~500

O'Charley's 336 EVANSBOB BRAND herein or Logan's Roadhouse 260 warranties, Weekday Weekend are Day Mix Carraba's 247 for 60% 40% CPK 232 example expressed Bonefish Grill 210

purposes Cheesecake Factory 191 or

implied, BJ's Restaurants 177 only Joe's Crabshack 127 ~500 as and Bravo Brio 118 to do the not accuracy represent units. of the the information current Brand Awareness Strong RealEstate Footprint or future . References performance to square of the footage property Iconic Brand Significant density in Ohio region region (4x in Ohio density Significant or age . Marcus are approximate & largest competitor) largest Millichap 1 . Real Buyer Estate 14 must Net Promoter Score 14 Investment verify 53 the 48 2 22 191 29 47 4 34 15 7 8 27 7 1

8 BRAND OVERVIEW MANAGEMENT TEAM CEO Saed Mohseni has significant experience in the full-service dining industry and will lead a new but experienced management team.

KEY STATS ACCOMPLISHMENTS

➢ Bravo Brio, CEO ‘07-’15 Significant Restaurant Experience: Former McCormick & Schmick’s 30+ years of restaurant experience starting as Employers ’86-’07 (CEO ’00-’07) a general manager at McCormick & Schmick’s Marriott Corporation, ’84-’86 in 1986.

Oregon State University Education Portland University ➢ CEO of Multiple Casual Dining Chains: Former CEO of Bravo Brio (2007-2015) & McCormick Bravo Brio: ‘06 – ‘15 & Schmick’s (2000-2007). Boards Chuy’s: ‘12 – Current Bob Evans: ‘16 – Current ➢ Strong Performance as CEO: Doubled EBITDA & units at both McCormick & Schmick’s & Prion Performance as CEO Bravo Brio.

➢ Restaurant IPO Experience: CEO during two EBITDA ($M) EBITDA ($M) restaurant IPOs (McCormick & Schmick’s: IPO IPO Saed 2004, Bravo Brio: 2010). Saed Joined Joined ➢ >10 years working for Private Equity: CEO of McCormick & Schmick’s when Castle Harlan & BRS bought business in 2001 through their MANAGEMENT TEAM exit and was recruited by Castle Harlan to be CEO of Bravo Brio when they bought the business in 2006.

The Bob Evans transaction fits directly into GGC’s investment strategy and is very similar to GGC’s acquisition of Red Lobster. Under GGC ownership Red Lobster has increased sales and margins through similar “playbook” planned for Bob Evans.

RL Results Since Close Strong Scale SSS % 2% Platform 2% +700 (700+ units, $2.5B sales) (~500 units, $900M sales) bps 0 Leading Brand Awareness -2 (Loyal customer following with high perception across both brands) -4 Undermanaged -5% -6 but fixable asset Avg Pre- Avg. Post- Acq(1) Acq(1) (Negative trends turned (Similar thesis) positive, higher margins) EBITDAR % Attractive Real 15% 15% +500 Estate bps 13% (Healthy real estate portfolio, (Strong asset coverage from owned 13 recently remodeled) real estate, recently remodeled) Strong History of 11 10% Performance 9

7 RED LOBSTER CASE STUDY Identifiable Profit 5 Opportunities Pre-GGC Current Near-Term (Multiple avenues of cost and (Multiple avenues of cost, sales Target sales upside) and new unit opportunities)

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 performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap 10 Services information This information is a service and bears • • • has mark been productivity improvementsand unit growth. brands withan opportunity to grow earnings through execution, better partner with strong managementto teamsacquire strong, established Bob directlywithin fits GGC’sEvans Restaurants investmentstrategy companies with annual of revenues>$15 billion. companiesretail over the pasttenyears, investedin restaurantand retail GGC has been one of acquirors of the most activemulti over $15 billion ofcommitted capital. Golden privateCapital (“GCC”) Franciscobased Gate equity a San firmwith is all of risk secured Marcus for any & from Millichap inaccuracies sources Real we . Any Estate believe projections, Investment to be reliable, opinions, Services, but assumptions Inc we . © make Restaurant Private Equity InvestmentsPrivate Restaurant 2017 no or Marcus representations estimates & Millichap used herein or warranties, are for example expressed purposes or implied, only as and to do the not accuracy represent of the the information current or future . References performance to square of the footage property or - unit restaurant and and restaurantunit age . Marcus are approximate & Millichap . Real Buyer Estate must Investment verify the →

11 PRIVATE EQUITY SPONSOR Representative Photo

FINANCIAL ANALYSIS Property Lease Summary Annualized Operating Data

Property Name Bob Evans Restaurants Rent Increases Annual Rent Monthly Rent Year 2 $66,300 $5,525 Property Type Net Leased Restaurant Year 3 $67,626 $5,636 Year 4 $68,979 $5,748 Ownership Private Year 5 $70,358 $5,863 Year 6 $71,765 $5,980 Private Equity Sponsor Year 7 $73,201 $6,100 Tenant Bob Evans Restaurants Year 8 $74,665 $6,222 Year 9 $76,158 $6,346 Guarantor Bob Evans Restaurants Year 10 $77,681 $6,473 Year 11 $79,235 $6,603 Lease Term 20 Years Year 12 $80,819 $6,735 Year 13 $82,436 $6,870 Lease Commencement 4/28/2017 Year 14 $84,084 $7,007 Lease Expiration1 4/30/2037 Year 15 $85,766 $7,147 Year 16 $87,481 $7,290 Lease Term Remaining 20 Years Year 17 $89,231 $7,436 Lease Type Triple-Net (NNN) Year 18 $91,016 $7,585 Roof & Structure Tenant Responsible Year 19 $92,836 $7,736 Year 20 $94,693 $7,891 Annual Rent $66,300 Options to Renew Six, Five Year Option Periods CAP Rate 6.75% Rental Increases Two Percent Annually Price $982,222

1 Tenant has the right to terminate this lease at the five year anniversary of the effective date with

360 days notice to Landlord of exercise of termination. FINANCIAL OVERVIEW AND FINANCIAL LEASE SUMMARY OVERVIEW

➢ Major Retailers in Surrounding Area Include: Big Lots, Marshalls, This Bob Evans property is located at 8700 Midlothian Turnpike in Richmond, Walgreens, CVS, and Dollar General VA. Richmond is the capital of and the fourth most populous city in Virginia. ➢ Strong Traffic Counts | Powhite Parkway and Midlothian Turnpike| Richmond is located at the fall line of the James River, 44 miles west of Williamsburg, 66 miles east of Charlottesville, and 98 miles south of 92,836 and 104,328 Vehicles a Day Respectively Washington, DC. ➢ Notable Hotels | Less Than Two Miles from Subject Property | Includes Best Western, Fairfield Inns & Suites, and Hyatt Surrounding Retail and Points of Interest The area surrounding the subject property is home to a wide array of national retailers and shopping centers. Notable retailers within two miles of the Richmond, VA property are Big Lots, Marshalls, Walgreens, CVS, Dollar General, Goodwill, and 7-Eleven. There are five car dealerships in the surrounding area that include Hyundai, BMW, Mercedes-Benz, Lexus, Volvo, and GMC. Notable hotels within two miles of the property are Best Western, Extended Stay America, Super 8 Motel, Fairfield Inns & Suites, Holiday Inn, and Hyatt.

Traffic Counts and Demographics Richmond has approximately 62,323 individuals residing within a three-mile radius of the property and more than 167,731 individuals within a five-mile radius. The subject property is located on Midlothian Turnpike, which intersects with Powhite Parkway. Powhite Parkway has an average traffic count in excess of 92,836 vehicles per day. Midlothian Turnpike itself has an additional average traffic count of 104,328 vehicles per day. Richmond, Virginia ADTC 92,836 Richmond is the center of the Richmond Metropolitan Statistical Area and the Greater Richmond Region. The Richmond Metropolitan Area is the third most populous metro in the state. Richmond's economy is primarily driven by law, finance, and government, with federal, state, and local governmental agencies, as well as notable legal and banking firms, located in the downtown area. The city is home to both the United States Court of ADTC 104,328 Appeals for the Fourth Circuit, one of 13 United States courts of appeals, and the Federal Reserve Bank of Richmond, one of 12 Federal Reserve Banks. The Greater Richmond area is also home to six Fortune 500 companies: electric utility Dominion Resources; CarMax; Owens & Minor; Genworth Financial; WestRock; McKesson Medical-Surgical, Markel Corporation, and Altria Group. Other Fortune 500 companies, while not headquartered in the area, do have a major presence. These include SunTrust Bank, Capital One Financial Corporation, and the medical and pharmaceutical giant McKesson. DuPont maintains a production

facility in South Richmond known as the Spruance Plant. UPS Freight, the OVERVIEW LOCATION less-than-truckload division of UPS and formerly known as Overnite Transportation, has its corporate headquarters in Richmond.

Population POPULATION In 2014, the population in your selected geography is 167,731. The population has 1-Mile 3-Mile 5-Mile changed by 10.20% since 2000. It is estimated that the population in your area will be 172,183 five years from now, which represents a change of 2.65% from the current 2010 5,295 60,533 162,298 year. The current population is 47.53% male and 52.46% female. The median age of the population in your area is 37.8, compare this to the Entire US average which is 2014 5,430 62,323 167,731 37.3. The population density in your area is 2,133.66 people per square mile. 2019 5,608 63,051 172,183 Income 2014 HOUSEHOLD INCOME In 2014, the median household income for your selected geography is $58,066, compare this to the Entire US average which is currently $51,972. The median 1-Mile 3-Mile 5-Mile household income for your area has changed by 20.47% since 2000. It is estimated that the median household income in your area will be $64,242 five years from now, Average $73,419 $72,297 $79,098 which represents a change of 10.63% from the current year. The current year per Median $58,863 $55,486 $58,066 capita income in your area is $31,853, compare this to the Entire US average, which is $28,599. The current year average household income in your area is $79,097, TOP EMPLOYERS IN RICHMOND compare this to the Entire US average which is $74,533. Employer # of Employees Employment VCU & Health System 15,291 In 2014, there are 69,085 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 69.53% of employees are Fort Lee 12,700 employed in white-collar occupations in this geography, and 30.68% are employed in DEMOGRAPHICS blue-collar occupations. In 2014, unemployment in this area is 4.42%. In 2000, the Capital One Financial Corp. 11,262 average time traveled to work was 24.9 minutes.