Art Van Furniture 12610 Felch St Ste #100 Holland, MI 49424 Representative Photo OFFERING MEMORANDUM Exclusive Net Lease Offering INVESTMENT HIGHLIGHTS LOCATION LEASE TENANT ✓ Conveniently Located | Subject ✓ Long-Term, 20-Year Absolute Triple ✓ Art Van Furniture has been Property is Located 28 Miles from Net (NNN) Lease With 19 Years Successfully Operating for Nearly 60 Grand Rapids, Michigan Remaining on the Base Term Years ✓ Surrounding Retailers Include: ✓ Zero Landlord Responsibilities ✓ Acquired by Private Equity Firm Walgreens, Walmart, Lowe’s, Target, ✓ Attractive Rental Increases | Lesser of Thomas H. Lee Partners in March of and Hobby Lobby, Among Others 2.0% or 1.25x the Change in CPI 2017 ✓ Dense Population | 96,984 Individuals Increases Annually ✓ 184 Stores in Nine States | Illinois, Living in a 5-Mile Radius ✓ Four (4), Five (5)-Year Tenant Renewal Indiana, Iowa, Kentucky, Maryland, ✓ Grand Valley State University | Over Options Michigan, Ohio, Pennsylvania, and 25,000 Students Enrolled | Just 5 Virginia | Still Expanding Miles Away ✓ Revenue of $1.3 Billion ✓ High Traffic Counts | Felch Street and ✓ Over 5,700 Employees US- 31 Experience Average Daily Traffic Counts of Over 13,000 and ✓ Brand Produces High Quality Furniture 25,000 Vehicles Respectively at Affordable Prices ✓ Nearby Attractions | Deltaplex and Van ✓ Growing Industry | $111.47 Billion Andel Arena Have a Combined Capacity Furniture Retail Industry with Revenue of 17,034 Seats Growth of 2.5% in 2017 Representative Photo 12610 Felch Street | Holland, MI 49424 Financial Analysis ✓ PRICE $9,629,630 ✓ CAP 6.75% ✓ RENT $650,000 Property Description Rent Schedule Property Art Van Furniture Lease Year(s) Annual Rent Monthly Rent Rent Escalation Property Address 12610 Felch St Ste 100 City, State, ZIP Holland, MI 49424 Current $650,000 $54,167 - Building Size (Square Feet) 44,122 Year 3 $663,000 $55,250 2.00% Lot Size +/- 3.0 Acres Year 4 $676,260 $56,355 2.00% Type of Ownership Fee Simple The Offering Year 5 $689,785 $57,482 2.00% Purchase Price $9,629,630 Year 6 $703,581 $58,632 2.00% CAP Rate 6.75% Year 7 $717,653 $59,804 2.00% Annual Rent $650,000 Year 8 $732,006 $61,000 2.00% Rent / SF $14.73 Year 9 $746,646 $62,220 2.00% Price / SF $218 Year 10 $761,579 $63,465 2.00% Lease Summary Year 11 $776,810 $64,734 2.00% Property Type Net-Leased Retail Tenant Art Van Furniture Year 12 $792,346 $66,029 2.00% Guarantor AVF Parent, LLC Year 13 $808,193 $67,349 2.00% Original Lease Term 20 Years Year 14 $824,357 $68,696 2.00% Lease Commencement March 1, 2017 Year 15 $840,844 $70,070 2.00% Lease Expiration February 28, 2037 Year 16 $857,661 $71,472 2.00% Lease Term Remaining 19 Years Year 17 $874,814 $72,901 2.00% Lease Type Triple-Net (NNN) Roof & Structure Tenant Responsible Year 18 $892,311 $74,359 2.00% Rental Increases Lesser of 2.0% or 1.25x Change in CPI Annually Year 19 $910,157 $75,846 2.00% Options to Renew Four, Five-Year Option Periods Year 20 $928,360 $77,363 2.00% 3 Art Van Furniture Tenant Overview: Art Van Furniture General Information Over $1.3 billion Address Warren, MI in Total Company Website http://www.artvan.com Sales Concentration 184 Locations in 9 States About Art Van Furniture 184 Stores in Art Van Furniture Inc. is furniture retail chain that operates over 180 stores Nine States and across the Midwest operating under the following brands: Art Van Furniture, Art Van PureSleep, Art Van Flooring, Scott Shuptrine Interiors, Levin Growing Furniture, Wolf Furniture, and Gardiner Wolf Furniture. Founder, Mr. Van Elslander began his career in Detroit, opening his first store in 1959. He was committed to creating a brand that had quality furniture at affordable prices. Van Elslander also wanted to create a company with impeccable customer service. In 1959, Elslander was the only employee, today, Art Van’s furniture employs over 5,700 workers. Art Van’s Furniture offers mattress stores, flooring stores, and a full service e-commerce website. Art Van Furniture has branded itself as a home fashion revolutionary through reinventing and modernizing classic furniture. Art Van Furniture allows their customers to customize their stylish furniture and mix and match patterns, fabrics, colors, and finishes according to their personal taste. In March of 2017, Art Van completed an equity recapitalization in partnership with now majority shareholder Thomas H. Lee Partners. Since its founding in 1974, THL has raised over $22 billion of equity capital, acquired over 140 portfolio companies and completed over 360 add-on acquisitions which collectively represent a combined enterprise value at the time of acquisition of over $200 billion. In November of 2017, Art Van Furniture announced that it has acquired two privately-held Pennsylvania furniture companies, Pittsburgh-based Levin Furniture and Altoona-based Wolf Furniture, adding 35 Levin Furniture stores and 18 Wolf Furniture showrooms. Representative Photo 4 Art Van Furniture Location Overview SURROUNDING RETAIL & POINTS OF INTEREST This Art Van Furniture property is strategically located in a dense retail corridor. In the immediate area, major tenants include Target, Meijer, McDonald’s, Lowe’s, Walgreens, Walmart, and Sam’s Club, among many others. Holland Hospital is approximately three miles from the subject property and has a total bed count of 189 beds. The subject property is also located within a dense ADTC: 13,338 academic corridor. Holland Christian School, Holland High School, Black River Public School, and Harbor Lights Middle School are all located within five miles of the property and have a combined enrollment exceeding 3,800 students. The subject property is also surrounded by major arenas including Deltaplex Arena and Van Andel Arena. Both arenas are located within five miles and have a combined capacity of 17,034 seats. TRAFFIC COUNTS & DEMOGRAPHICS There are approximately 54,539 individuals residing within a three-mile radius of the property and 96,984 individuals within a five-mile radius. The subject property is located on Felch Street, which experiences an average daily traffic count of 13,338 vehicles. Felch Street intersects with US-31, which brings in an additional 37,370 vehicles daily. MARKET OVERVIEW Holland, located about five miles from the eastern shore of Lake Michigan, is the ADTC: 37,370 largest city in Ottawa County. Major industries in Holland include Battery production, auto part and furniture manufacturing, and food processing, led by firms such as LG Chem, Johnson Controls, Adient, Magna, Yanfeng Automotive Interiors, Haworth, and Herman Miller, and Kraft Heinz. Holland is home to Hope College, which has over 3,200 students enrolled. Davenport University and Grand Valley State University also operate satellite campuses in the city. Holland’s annual Tulip Time Festival, which is held each May, attracted more than 180,000 attendees in 2015. Other tourist attractions include the Holland Museum, Holland Harbor Light, Tulip Gardens, Dutch Village and the city owned Windmill Island Gardens. In 2013, Farmer’s Insurance named the Holland Area the most secure mid-sized city in the United States. 5 Art Van Furniture Surrounding Area 6 Art Van Furniture SUBJECT PROPERTY Regional Map 7 Art Van Furniture SUBJECT PROPERTY 7 State Map 8 Art Van Furniture SUBJECT PROPERTY Demographics 3 Miles 5 Miles 10 Miles Population Trends 2022 Projection 56,989 100,870 137,004 2017 Estimate 54,539 96,984 131,379 2010 Census 51,564 91,826 124,100 10 Miles 2000 Census 48,325 85,353 117,514 INCOME Average $69,249 $74,936 $79,466 Median $56,351 $58,741 $62,633 Per Capita $24,422 $27,633 $28,946 HOUSEHOLDS 5 Miles 2022 Projection 19,855 37,128 49,984 2017 Estimate 18,679 35,136 47,216 2010 Census 17,587 33,093 44,375 2000 Census 15,959 29,484 40,164 HOUSING 3 Miles 2017 $150,101 $163,223 $176,931 EMPLOYMENT 2017 Daytime Population 68,946 126,163 149,638 2017 Unemployment 4.64% 3.60% 3.25% 2017 Median Time Traveled 18 19 19 RACE & ETHNICITY White 69.67% 76.85% 81.01% Native American 0.09% 0.06% 0.05% African American 3.94% 3.28% 2.67% Asian/Pacific Islander 9.00% 6.45% 5.22% White 69.67% 76.85% 81.01% Native American 0.09% 0.06% 0.05% Major Employers Employer Estimated # of Employees Haworth Inc 3,740 Haworth International Ltd 3,000 E C Aviation Services Inc 1,400 Holland Hospital 1,400 Prince Manufacturing Corp 1,000 West Ottawa Schools 900 Gentex Corporation 732 Johnson Controls 707 Challenge Mfg Company 700 Thermotron Industries Inc 680 Engineered Glass 644 9 Art Van Furniture Confidentiality and Disclaimer Marcus & Millichap hereby advises all prospective locations is an important consideration, it is not a diligence investigation. Marcus & Millichap has not made purchasers of Net Leased property as follows: guarantee of future success. Similarly, the lease rate for any investigation, and makes no warranty or some properties, including newly-constructed facilities or representation, with respect to the income or expenses for The information contained in this Marketing Brochure has newly-acquired locations, may be set based on a tenant’s 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 are of the property and improvements, the presence or any of this information, nor has Marcus & Millichap not guaranteed; the tenant and any guarantors may fail to absence of contaminating substances, PCB’s or asbestos, conducted any investigation regarding these matters.