Bay Mall. Southwest Corner of Charlevoix Ave (US Rt 31) and Spring Street (US Rt 131) Petoskey, Michigan

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1 Bay Mall Southwest Corner of Charlevoix Ave (US Rt 31) and Spring Street (US Rt 131) Petoskey, Michigan For further information contact owner s exclusive representative. Ben Wineman (630) bwineman@midamericagrp.com Richard Kerwin (248) rkerwin@midamericagrp.com

2 INVESTMENT CONSIDERATIONS Mid-America Real Estate Corporation, in cooperation with Mid-America Real Estate Michigan, Inc. (hereinafter referred to as MAREC ), has been retained on behalf of the owner to sell the 100% fee simple interest in Bay Mall in Petoskey, MI. Please note that certain brokers at Mid-America Real Estate Corporation and Mid-America Real Estate Michigan, Inc. have some ownership interest in the subject offering. Excellent, Stable Tenancy: Bay Mall is a 100% occupied open-air community center featuring four anchors, all on longterm corporate leases: Dunham s Sports, Bed Bath & Beyond, Peebles, and Dollar Tree. The next closest location for each of these retailers is at least 30 miles away. This ensures the steady consumer traffic that exists at the subject property and has led to the retention of each tenant. Dunham s has recently extended its lease for five years. Inline national tenants at Bay Mall include Aaron s, Sherwin Williams, and Shoe Sensation. Strong Regional Trade Area: Large collection of major national credit tenant retailers surrounding Bay Mall in the primary retail hub for Petoskey and serving the surrounding communities such as Charlevoix, Harbor Springs, and Bay Harbor. Other national retailers in the vicinity include Walmart, Home Depot, Jo-Ann, Marshalls, Lowe s, Aldi, Meijer, D&W Food Centers, Hobby Lobby, and Art Van Furniture. Overall, the subject s trade area features a well-leased 1.18 million square feet of retail space. Surrounding Demographics: The Petoskey area features strong demographics and serves as a popular destination for millions of residents living in the Midwest. Within 10 miles of Bay Mall is a residential population of 28,190 with an average household income of $78,773, well-above both the state and national means. These numbers do not include the second home owners, boaters, and visitors that come to the area each year, particularly in the summer months due to Petoskey s location on Lake Michigan and status as a resort community, and ski town during the winter months. Outstanding Accessibility and Visibility: Positioned just one-half block south of the intersection of Spring Street (US Route 131) and Charlevoix Avenue (US Route 31), where the two thoroughfares combine for a solid average traffic count of 35,600 vehicles per day. US Routes 31 & 131 are the main highways serving the Petoskey area. Both connect many of the communities throughout northern and western Michigan. Significant Value-Add Opportunity: While Bay Mall has an occupancy rate of 100%, there remains potential for additional upside at the property. The offering includes 2.5 acres of excess land that remains undeveloped and provides a prospective buyer with an excellent opportunity to add a pad site. Leveraged Yields: Attractive in-place CMBS loan that matures in 2024 and should help to generate solid cash returns and IRRs. 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.

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4 LOCATION & MARKET Bay Mall is located just southeast of the corner of Charlevoix Ave (US Route 31) and Spring Street (US Route 131) in the city of Petoskey, Michigan. The county seat of Emmet County, Petoskey is situated directly on Lake Michigan, on the northwestern tip of Michigan s Lower Peninsula. Within a 30-mile radius of Bay Mall, there is a residential population over 100,000, with corresponding average household incomes of $65,000. The population in Petoskey and neighboring communities of Charlevoix and Harbor Springs are estimated to grow by as much as 10 times during the summer months. Positioned in northern Michigan, Petoskey is 270 miles northwest of Detroit, via I-75, and 185 miles northeast of Grand Rapids, via US Route 131. Petoskey has been a popular summer vacation spot for generations for visitors from all over the Midwest due to its nationally ranked golf courses, first-class recreation, and million dollar sunset. The area is also a well-known winter destination, with three popular ski resorts (Boyne Highlands, Boyne Mountain, Nub s Nob) within 20 minutes drive time. Bay Mall s regional trade area features over 1.18 million square feet of GLA, 92% of which is currently occupied. Almost all of the vacant square footage is due to the recent closure of an 86,000 square foot Kmart location at the Petoskey Town Center. PROPERTY DESCRIPTION Bay Mall consists of 116,497 square feet of GLA. The property totals 17.2 acres, including 2.5 acres of additional land that can be further developed. Construction was completed at the property in Positioned at one of Petoskey s Main and Main retail intersection of US Routes 31 & 131, Bay Mall features excellent visibility along Spring Street (US Route 131) with combined traffic counts of 35,600 vehicles per day. TENANCY Bay Mall is 100% leased and includes an excellent combination of national credit anchors such as Bed Bath & Beyond, Dunham s Sports, Peebles and Dollar Tree. All four are on corporate, long-term leases which combine for 72% of Bay Mall s GLA and 66% of its gross income. National inline retailers at the property include Sherwin Williams, Aaron s, and Shoe Sensation along with local tenants Tannery Creek Market and BC Pizza. Recent leasing velocity at the center includes the renewal of Dunham s, along with new leases with Shoe Sensation and Tannery Creek. EXISTING DEBT SUMMARY Current Principal Balance: $5,179,829 (as of August 22, 2016) Interest Rate: 4.75% Amortization: 30-year schedule Monthly Debt Service: $27, Maturity Date: July 6, 2024 PRICING Bay Mall offers a purchaser the opportunity to acquire a 100% leased community center in the well-known Michigan vacation destination of Petoskey. The Property is being sold subject to the Purchaser s assumption of the existing CMBS loan NOI: $783,870 Asking Price: $9,100,000 Asking Cap Rate: 8.6% 1st Year Cash-on-Cash Return: 11.5% The site features two ingress and egress points along US 131, and an additional ingress and egress point along Greenwood Cemetery Road.

5 For further information contact owner s exclusive representatives. Ben Wineman (630) bwineman@midamericagrp.com in cooperation with Richard Kerwin (248) rkerwin@midamericagrp.com CLICK HERE to go to Property Website Oak Brook Office One Parkview Plaza, 9th Floor Oakbrook Terrace, IL P: F: Chicago Office 435 North Michigan Avenue, Suite 2009 Chicago, IL P: F: Detroit Office Woodward Avenue, Suite 100 Bloomfield Hills, MI P: F: Milwaukee Office 648 N. Plankinton Avenue, Suite 264 Milwaukee, WI P: F: Minneapolis Office 5353 Wayzata Boulevard, Suite 650 Minneapolis, MN P: F: