100% OCCUPIED SYRACUSE, NY OFFERING MEMORANDUM

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1 100% OCCUPIED N A T I O N A L M U L T I - T E N A N T P L A Z A SYRACUSE, NY OFFERING MEMORANDUM

2 2 INVESTMENT OVERVIEW 3 INVESTMENT OVERVIEW INVESTMENT OVERVIEW Aspen Dental Anchored Shopping Strip in Camillus, New York Five Miles West of Syracuse Complete Scrape and Rebuild in 2015 Marcus & Millichap is pleased to present this 10,722-square foot strip center in Syracuse, New York; which is five miles west of Syracuse. The tenants are operating under double-net (NN) leases reimbursing for real estate taxes, insurance, and common area maintenance. The asset is 100 percent occupied, and more than 51 percent of the center is backed by corporate credit. Aspen Dental Management, Incorporated operates more than 500 dental offices across 35 states. H&R Block Eastern Enterprises, Incorporated is an investment grade tenant with a Standard & Poor (S&P) rating of BBB. Domino s demonstrates commitment with its more than 10-year operating history and significant capital investment for its Store of the Future Build Out. Additionally, Domino s executed its second 10- year extension option early in This highly visible strip center is located on West Genesee Street between Onondaga Road/Route-173 and Highway-5, a highly trafficked corridor which sees more than 32,000 vehicles per day (VPD). Directly adjacent from the subject property is the Fairmount Fair Shopping Center. This 490,000-square foot power center is anchored by Target, HomeGoods, and Bed Bath & Beyond. The West Genesee Street corridor features more than one million square feet of retail. Additionally, this asset benefits from its proximity to local schools and Syracuse University. West Genesee Senior High School is less than half a mile west; enrollment features more than 1,600 students. The Camillus strip center is also nearby Syracuse University, which is the eighth largest University in state. More than 20,000 students are enrolled. LOT #4 Aspen Dental H&R Block Domino s Pizza Sports Clips LOT #3 Tenants Operating Under Double-Net (NN) Leases Reimbursing for Real Estate Taxes, Insurance, and Common Area Maintenance Asset is 100 Percent Occupied More Than 51 Percent is Backed by Corporate Credit Aspen Dental Management, Incorporated Operates More Than 500 Units Across 35 States H&R Block Eastern Enterprises, Incorporated Investment Grade Tenant Standard & Poor (S&P): BBB Domino s Demonstrates Strong Commitment More Than 10-Year Operating History Invested Significant Capital for Store of the Future Build Out Executed Second 10- Year Extension Option Early in 2017 Highly Visible on West Genessee Street Highly Trafficked Corridor More Than 32,000 Vehicles Per Day (VPD) Dense Retail Corridor More Than One Million Square Feet of Retail Space Within Two Miles Anchored by National Credit: Target, Wegmans, HomeGoods West Genesee High School Located Half of a Mile West More Than 1,600 Students Nearby Syracuse University More Than 20,000 Students Eighth Largest University in New York $1.2-Billion Endowment Strong Demographics More Than 132,630 Residents with an Average Household Income Greater Than $62,000 in the Five-Mile Radius

3 4 FINANCIAL OVERVIEW 5 LEASE SUMMARY FINANCIAL OVERVIEW LEASE SUMMARY PRICE: $3,878,520 CAP RATE: 7.50% NOI: $290,889 PRICE PER SQUARE FOOT: $ RENT PER SQUARE FOOT: $29.81 YEAR BUILT: 2015 APPROXIMATE LOT SIZE: 1.94 Acres GROSS LEASEABLE AREA: 10,277 TYPE OF OWNERSHIP: Fee Simple TENANT GUARANTOR GLA % OF GLA ASPEN DENTAL MANAGEMENT, INCORPORATED H&R BLOCK SPORTS CLIPS DOMINO'S MORGAN COMMUNITIES * ASPEN DENTAL MANAGEMENT, INCORPORATED H&R BLOCK EASTERN ENTERPRISES, INCORPORATED JOMEKA ENTERPRISES, LIMITED LIABILITY COMPANY PIEMAKERS4U, LIMITED LIABILITY COMPANY MORGAN MANAGEMENT, LIMITED LIABILITY COMPANY (LLC) LEASE COMMENCE TENANT PROFILES LEASE EXPIRE TERM REMAINING ANNUAL RENT RENT (PSF) 3, % 8/8/2016 8/31/ YEARS $129,500 $ , % 5/1/2015 4/30/ YEARS $45,000 $ , % 8/3/2017 8/31/ YEARS $39,000 $ , % 9/19/2007 5/30/ YEARS $45,900 $25.50 INCREASES 10% EVERY 5 YEARS 10% IN OPTION 7.5% EVERY 5 YEARS 10% EVERY 5 YEARS LEASE TYPE NN NN NN NN RENEWAL OPTIONS 3, 5-Year 1, 5-Year 2, 5-Year 2, 5-Year 1, % 10/1/2017 9/30/ YEARS $46,925 $ % ANNUALLY NN None Base Rent $306,325 Expense Reimbursements Real Estate Taxes $41,557 Insurance $4,800 CAM $30,694 Management Fee $1,687 Total Expense Reimbursements $78,737 Effective Gross Income $385,062 Expenses Real Estate Taxes Lot 3 $38,349 Real Estate Taxes Lot 4 $4,118 Insurance $4,895 Contract Repairs Lot 3 $6,000 Landscaping Lot 3 $3,950 Landscaping Lot 4 $0 Snow Removal Lot 3 $9,072 Snow Removal Lot 4 $2,268 Trash Removal $3,396 Utilities $6,654 CAM Total $31,340 G&A (Non-reimbursable) Legal and Professional $1,500 Bank Charges $494 G&A Total $1,994 Management Fee (3.5% of EGI) $13,477 Total Expenses $94,173 Net Operating Income $290,889 TOTAL 10, % $306,325

4 6 TENANT OVERVIEW 7 NATIONAL TENANT MIX TENANT OVERVIEW - NATIONAL TENANT MIX ASPEN DENTAL DOMINO S PIZZA SPORTS CLIPS H&R BLOCK Aspen Dental Management Incorporated. (ADMI) is a dental support organization that provides non-clinical business support services to independently owned and operated dental practices in 35 states. This can include services and recommendations related to finding the right location, leasing, equipment, accounting and marketing. This model leaves independent, licensed practitioners free to concentrate on patient care. As one of the largest and fastest-growing networks of independent dental care providers in the United States, local Aspen Dental practices nearly 600 of them across 35 states offer patients a safe, welcoming and judgment-free environment to address their dental challenges. Every Aspen Dental-branded practice offers a full range of dental and denture services allowing patients to have the peace of mind that they are taken care of and protected, so they can focus on getting the healthy mouth they deserve. In 2015, Aspen Dental-branded practices recorded more than 3.7 million patient visits and welcomed nearly 785,000 new patients. TENANT PROFILE TENANT TRADE NAME Aspen Dental TENANT Aspen Dental LEASE GUARANTOR Aspen Dental Management, Incorporated NUMBER OF LOCATIONS 500+ HEADQUARTERED DeWitt, New York WEB SITE Founded in 1960, Domino s Pizza is the recognized world leader in pizza delivery, with a significant business in carryout pizza. It ranks among the world s top public restaurant brands with a global enterprise of 14,000 stores in over 85 international markets. Domino s had global retail sales of nearly $10.9 Billion in 2016, with more than $5.3 Billion in the United States and more than $5.5 Billion internationally. In the first quarter of 2017, Domino s had global retail sales of nearly $2.7 Billion, with over $1.3 Billion in the U.S. and nearly $1.4 Billion internationally. Its system is primarily comprised of independent franchise owners who accounted for over 97 Percent of Domino s stores worldwide as of the first quarter of Emphasis on technology innovation helped Domino s reach an estimated $5.6 billion in global digital sales in 2016, and has produced several innovative ordering platforms, including Google Home, Facebook Messenger, Apple Watch, Amazon Echo, Twitter and text message using a pizza emoji. In late 2015, Domino s announced the design and launch of the DXP, a purpose-built pizza delivery vehicle, as well as Piece of the Pie Rewards, its first digital customer loyalty program. TENANT PROFILE TENANT TRADE NAME Domino s TENANT Piemakers4U, Limited Liability Company LEASE GUARANTOR Piemakers4U, Limited Liability Company NUMBER OF LOCATIONS 2 HEADQUARTERED Manlius, New York Soon after the first Sports Clips opened in Austin, Texas in 1993, Sports Clips expanded franchising into Houston and Dallas. The company based further expansion plans on cities Southwest Airlines served in order to keep travel expenses to a minimum. It took five years to open the first 50 stores, and by 2007, Sports Clips celebrated the opening of its 400th and 500th franchised stores in the same year! In 2012, the franchise expanded into Canada. Sports Clips is now open in all 50 states and currently has more than 1,600 franchise locations open in the United States and Canada. TENANT PROFILE TENANT TRADE NAME Sports Clips TENANT Jomeka Enterprises, Limited Liability Company LEASE GUARANTOR Jomeka Enterprises, Limited Liability Company NUMBER OF LOCATIONS 2 HEADQUARTERED Georgetown, Texas H&R Block is a global consumer tax services provider, having prepared more than 750 million tax returns since In fiscal year 2017, H&R Block had revenues of just over $3.0 billion and prepared $23.0 million tax returns worldwide. Tax return preparation services are provided in approximately 12,000 company-owned and franchise retail tax offices in all 50 states, Puerto Rico and other United States territories, and on United States military bases around the world by professional tax preparers, and through H&R Block digital do-it-yourself products. An H&R Block branded retail office is located within five miles of most Americans. H&R Block also offers affordable financial products and services to its clients. TENANT PROFILE TENANT TRADE NAME H&R Block TENANT H&R Block Eastern Enterprises, Incorporated LEASE GUARANTOR H&R Block Eastern Enterprises, Incorporated NUMBER OF LOCATIONS 6,650 SALES VOLUME $3.0 Billion (2017) STOCK SYMBOL HRB CREDIT RATING Baa3 RATING AGENCY Moody s

5 8 SYRACUSE, NEW YORK 9 DEMOGRAPHICS ABOUT SYRACUSE, NY Syracuse is the fifth most populous city in the state of New York. Located in the center of state on the southern shore of Lake Ontario, the city of Syracuse is the region s major metropolitan center. The city has functioned as a major crossroads over the last two centuries, first between the Erie Canal and its branch canals, then from its railway network. Today, Syracuse is located at the intersection of Interstates 81 and 90, and its airport is the largest in the region. Syracuse is home to Syracuse University, a major research university, as well as Le Moyne College, a nationally recognized liberal arts college. In 2010, Forbes rated Syracuse fourth in the top 10 places in the United States to raise a family. More than 150 motor carriers and small package carriers service the Syracuse area. Air and rail terminals are just 15 minutes from downtown. There are Seven major airlines, along with affiliated commuter service, offer approximately 250 daily arrivals and departures. Over two-million travelers pass through Hancock International Airport each year. The region is also serviced by six major air cargo carriers. CSX operates an intermodal center in Dewitt/Manlius for transfer of trailers and containers between railcars and trucks with storage available for 345 trailers or containers. Amtrak services rail passenger needs. Syracuse s top employers are primarily in education and the service industry. University Hill is Syracuse s fastest growing neighborhood, fueled by expansions in Syracuse University and Upstate Medical University, as well as dozens of small medical office complexes. top employers State University of New York Upstate Medical University: 6,400 Syracuse University: 5,925 Wegmans Food Markets: 3,760 St. Joseph s Hospital Health Center: 3,150 Crouse Hospital: 2,400 Lockheed Martin Corp.: 2,350 National Grid USA: 1,860 Loretto : 1,825 1-Mile 3-Mile 5-Mile POPULATION 2000 Population 9,810 48, , Population 9,505 47, , Population 9,778 47, , Population 9,845 47, ,389 1-Mile 3-Mile 5-Mile HOUSEHOLDS 2000 Households 3,987 19,938 53, Households 4,103 20,325 53, Households 4,225 20,081 52, Households 4,254 20,058 52,884 1-Mile 3-Mile 5-Mile HOUSEHOLD (HH) INCOMES 2017 Average HH Income $72,765 $75,760 $63, Median HH Income $61,321 $60,937 $47, Per Capita Income $31,441 $32,206 $25,787

6 10 AERIAL OVERVIEW DEMOGRAPHICS

7 MARCUS & MILLICHAP HEREBY ADVISES ALL PROSPECTIVE PURCHASERS OF NET LEASED PROPERTY AS FOLLOWS: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

8 N A T I O N A L M U L T I - T E N A N T P L A Z A SYRACUSE, NY 3660 WEST GENESEE STREET - SYRACUSE, NEW YORK BROKER OF RECORD: J. D. Parker MARCUS & MILLICHAP LICENSE: 31PA