CHICK-FIL-A West Ridge Road - GREECE, NEW YORK OFFERING MEMORANDUM FILE PHOTO

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1 CHICK-FIL-A OFFERING MEMORANDUM FILE PHOTO Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Y

2 Financial Overview OFFERING SUMMARY PRICE $3,175,000 CAP RATE 4.00% NOI $127,000 PRICE PER SQUARE FOOT $ RENT PER SQUARE FOOT $26.09 YEAR BUILT 2018 APPROXIMATE LOT SIZE 1.31 Acres GROSS LEASEABLE AREA 4,867 TYPE OF OWNERSHIP Fee Simple LEASE GUARANTOR LEASE TYPE ROOF AND STRUCTURE LEASE SUMMARY ESTIMATED RENT COMMENCEMENT DATE Chick-fil-A, Incorporated Triple-Net (NNN) Ground Lease Tenant Responsible 2/26/2018 LEASE EXPIRATION DATE 2/28/2038 LEASE TERM TERM REMAINING INCREASES OPTIONS TO RENEW FIRST RIGHT OF REFUSAL 20 Years 20 Years 10 Percent Every Five Years 8, 5-Year Yes ANNUALIZED OPERATING DATA BASE RENT Annual Rent Monthly Rent 2/26/2018 2/28/2023 $127,000 $10,583 3/1/2023 2/29/2029 $139,700 $11,642 10% 3/1/2028 2/28/2033 $153,670 $12,806 10% 3/1/2033 2/28/2038 $169,037 $14,086 10% OPTIONS 3/1/2038 2/28/2043 $153,065 $12,755-9% 3/1/2043 2/29/2048 $168,371 $14,031 10% 3/1/2048 2/28/2053 $185,209 $15,434 10% 3/1/2053 2/28/2058 $203,730 $16,977 10% 3/1/2058 2/28/2063 $224,102 $18,675 10% 3/1/2063 2/29/2068 $246,513 $20,543 10% 3/1/2068 2/28/2073 $271,164 $22,597 10% 3/1/2073 2/28/2078 $298,280 $24,857 10% FILE PHOTO Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Y

3 Investment Overview FILE PHOTO Marcus & Millichap is pleased to present this new construction Chick-fil-A in Greece, New York, only six miles northwest of downtown Rochester. There are 20 years remaining on this triple-net (NNN) ground lease featuring 10 percent rent bumps every five years. The lease is guaranteed by Chick-fil-A, Incorporated; who registered more than $8 billion in revenue (2016) and operates more than 2,000 locations. This highly visible Chick-fil-A is located on the intersection of West Ridge Road and Ridgecrest Road, a highly trafficked intersection which sees more than 29,000 vehicles per day (VPD). This asset also benefits from being nearby Interstate 390, a major north-south highway in New York which sees more than 68,000 vehicles per day (VPD). Directly adjacent from the subject property is The Mall at Greece Ridge. This mega-mall has more than 1.6 million square feet of retail, making it one of the largest shopping centers in the country. Some of the anchors include: Target, Bed Bath & Beyond, Regal Cinemas, and Macy s Home Store. There is an additional 500,000 square feet of retail within a mile featuring national credit tenants such as Wegmans, Lowe s, and The Home Depot. Just two miles north of Chick-fil-A is Olympia High School which has more than 1,100 students. Chick-fil-A is nearby the Eastman Business Park, featuring one of the largest employers in Rochester, Kodak, who employs more than 2,300 people. There is a 10-year master plan for the 1,200-acre Research & Development and manufacturing campus. The plan calls for selling off 300 acres of land to develop retail, apartment, office, and manufacturing space. It is the largest redevelopment site in Rochester. Brand New Construction Chick-fil-A in Greece, New York Six Miles from Downtown Rochester Triple-Net (NNN) Ground Lease with 20 Years Remaining Zero Landlord Responsibilities Corporate Guaranty 2,000-Plus Locations $8 Billion in Revenue During 2016 Hedge Against Inflation 10 Percent Rent Bumps Every Five Years Eight, Five-Year Options to Extend Signalized Hard Corner Location on the Intersection of West Ridge Road and Ridgecrest Road 29,643 Vehicles Per Day (VPD) Along West Ridge Road Strong Demographic Area More Than 225,000 Residents With an Average Household Income Greater Than $58,000 in the Five Mile Radius Dense Retail Corridor Across the Street from The Mall at Greece Ridge More Than 2.1 Million Square Feet of Retail Within One Mile Anchored by National Credit: Wegmans, Target, Lowe s, Regal Cinemas, The Home Depot, and Dicks Sporting Goods Half of a Mile West of Interstate-390 Major North-South Highway Exclusively in New York See s More Than 68,000 Vehicles Per Day (VPD) Located Two Miles South of Olympia High School More Than 1,100 Students Enrolled Eastman Business Park Home of Kodak More Than 2,300 Employees Largest Redevelopment Site in Rochester Additional Retailers in the Immediate Vicinity include: Panera, Bank of America, Ruby Tuesday, AT&T, KeyBank, Rite Aid, KFC, Wendy s, Dollar Tree, Tim Horton s, Ashley HomeStore, LA Fitness, Applebee s, Buffalo Wild Wings, and Many More. FILE PHOTO Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Y

4 Tenant Overview - CHICK-FIL-A FILE PHOTO Atlanta-based Chick-fil-A, Incorporated is a family owned and privately held restaurant company founded in 1967 by S. Truett Cathy. Chick-fil-A is devoted to serving the local communities the company operates restaurants in, and is known for its original chicken sandwich. The company operates more than 2,200 restaurants in 46 states and Washington, D.C. Chick-fil-A system sales reached nearly $8 billion in 2016, which marks 49 consecutive years of sales growth. In 2017, Chick-fil-A received the top score among fast food brands and one of the top 10 scores overall for customer experience in the Temkin Experience Ratings survey, and the company s internship program was ranked number 13 in career website WayUp s survey of the top 100 best summer internships. In 2016, Chick-fil-A was named the Technomic Consumer s Choice for providing value through service, named the the most polite restaurant in the country in QSR Magazine s annual drive-thru report and was the only restaurant brand named to the Top 10 Best Companies to Work For by 24/7 Wall Street. More information on Chick-fil-A is available at TENANT PROFILE TENANT TRADE NAME Chick-fil-A OWNERSHIP Private TENANT Chick-fil-A, Incorporated LEASE GUARANTOR Chick-fil-A, Incorporated NUMBER OF LOCATIONS 2,100 HEADQUARTERED Atlanta, Georgia WEB SITE SALES VOLUME $8 Billion (2016) Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Y

5 A er i al O verview 2120 We s t R i d g e Ro ad - G REEC E, NE W YORK Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Y

6 Aerial Overview Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Y

7 Area Overview & Demographics 1-Mile 3-Mile 5-Mile Population 2000 Population 9,707 84, , Population 9,738 85, , Population 9,674 85, , Population 9,667 85, ,781 1-Mile 3-Mile 5-Mile Households 2000 Households 4,036 34,271 89, Households 4,203 35,395 91, Households 4,179 35,515 91, Households 4,178 35,567 91,703 1-Mile 3-Mile 5-Mile Household (HH) Incomes 2017 Average HH Income $64,005 $61,447 $58, Median HH Income $52,273 $47,588 $44, Per Capita Income $27,649 $25,446 $23,546 Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Y

8 Market Overview - Greece, NY Greece, New York, in Monroe County, is five miles northwest of Rochester and 64 miles east of Buffalo. The town benefits from easy access to the nearby cities and towns that it shares the Rochester metropolitan area with. The Town of Greece is home to thousands of local businesses in the service, retail, manufacturing and professional sectors. Greece is home to several Fortune 500 companies and a vast number of successful family-owned and operated businesses that help keep the local economy stable. The Town has a business-friendly attitude that recognizes the importance of planned development to the local economy and future prosperity of New York State. Home to part of the world famous Kodak Park now called Eastman Business Park Greece has long been recognized for the diverse manufacturing that is housed here. The Canal Ponds Business Park is home to well-recognized companies such as IBM, Johnson & Johnson, Performance Technologies and the printing press for the Democrat and Chronicle. The Eastman Business Park has over 10 million square feet of manufacturing and office space along with access to affordable utility rates and excellent transportation access. LiDestri Food and Beverage is located on Lee Road and is a premier manufacturer of sauces, dips and salsas in the United States. Work done in Greece at places such as Flower City Printing is sent all over the world making Greece an ideal place for manufacturing. Though Greece has enjoyed strong growth for many years, there are still many development opportunities in the Town. Residential development is growing in the northwest section of the Town. The commercial corridor on Route 104 is continuing to expand westward with two large developments currently being proposed. Eastman and Canal Ponds Business Parks both offer excellent locations for manufacturing and office space. There is also land along the historic Erie Canal on the southern border of Greece that is available for mixed use development. With its strong population and high traffic counts Greece will remain a strong draw for businesses for many years. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Y

9 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.

10 CHICK-FIL-A Broker of Record J. D. Parker 260 Madison Avenue New York, NY Tel: Fax: License: 31PA