THE ARCADE. Newark, Ohio

THE ARCADE Newark, Ohio

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THE ARCADE 15 ARCADE PLACE NEWARK, OH 43055 EXCLUSIVELY LISTED BY Justin Fenn National Office and Industrial Properties Group Yozwiak Fenn Group Columbus Office Office (614) 360-9048 justin.fenn@marcusmillichap.com License: OH: SAL.2002011928 Dan Yozwiak First Vice President, Investments Yozwiak Fenn Group Columbus Office Office (614) 360-9036 dan.yozwiak@marcusmillichap.com License: OH: SAL.2008003600 Dowtown Newark, OH OFFICES NATIONWIDE AND THROUGHOUT CANADA WWW.MARCUSMILLICHAP.COM

RENT ROLL Suite Tenant GLA % of GLA Lease Commence Lease Expire Annual Rent Rent/ SF Changes On Changes To Expense Reimbs. Options Lease Type 6 Arcade Anx Vacant 565 1.12% 10/1/13 9/30/18 $2,400.00 $4.25 10/1/18 $2,400.00 Water, Trash M2M OO 8 Arc/Ste 100 Apartment 1 1,000 1.99% 6/1/17 5/31/18 $1,800.00 $1.80 6/1/18 $1,800.00 Trash M2M MG 8 Arc/Ste 200 Vacant Apt 2 1,000 1.99% 8/31/18 $4,200.00 $4.20 9/1/18 $4,200.00 Trash M2M MG 7-11 Arcade Pl New Hope Church 900 1.79% 8/26/17 8/25/18 $6,300.00 $7.00 8/26/18 $6,300.00 Water, Trash Renew MG 13 Arcade Pl Joan's X2 288 0.57% 8/1/17 7/31/18 $0.00 $0.00 MG 14 Arcade Pl Forward Thinking 827 1.64% 7/1/15 12/31/18 $4,095.00 $4.95 1/1/19 $4,095.00 Water, Trash Renew MG 14.5 Arcade Pl Joan's X2 560 1.11% $0.00 $0.00 Water, Trash None MG 15 Arcade Pl Tessa's Studio 288 0.57% 10/1/17 9/30/18 $1,800.00 $6.25 10/1/18 $1,800.00 MG 16 Arcade Pl E.M. Sports 1,130 2.24% 1/1/18 12/31/18 $3,654.00 $3.23 1/1/19 $3,654.00 Water, Trash Renew MG 17/25 Arcade Vacant 2,965 5.89% $12,000.00 $4.05 $12,000.00 N/A 18 Arcade Pl C. OH Elderly Care 907 1.80% 10/1/17 9/30/18 $3,108.04 $3.43 10/1/18 $3,108.04 Water, Trash Renew MG 27/29 Arcade Upscale Bits 560 1.11% 4/1/17 3/31/18 $3,600.00 $6.43 $3,600.00 None MG 29 N 3rd St Liz Lins Gifts 1,574 3.13% 12/1/17 11/30/18 $6,000.00 $3.81 12/1/18 $6,000.00 None MG 33 N 3rd St Center Pub 1,600 3.18% $21,750.00 $13.59 $21,750.00 M2M OO 35 N 3rd St Club 2k 1,200 2.38% 4/1/08 8/31/10 $17,400.00 $14.50 9/1/10 $17,400.00 Water, Trash M2M NN 24 N 4th St Vacant 780 1.55% $7,200.00 $9.23 $7,200.00 None MG 30 N 4th St Computer Warehs. 1,540 3.06% 7/1/07 6/30/10 $8,346.96 $5.42 7/1/10 $8,346.96 Water, Trash M2M NN 34 N 4th St Apartment 3 1,000 1.99% $12,000.00 $12.00 $12,000.00 MG 35 Arcade Pl Vacant Apt 4 2,000 3.97% $6,900.00 $3.45 $6,900.00 Trash Renew MG 4 Arcade Annex Vacant 1,046 2.08% $7,200.00 $6.88 $7,200.00 MG Future Apts. Vacant 28,118 55.85% $262,500.00 $9.34 $262,500.00 N/A 8 Arcade Annex Vacant 500 0.99% $4,200.00 $8.40 $4,200.00 MG TOTAL VACANT 36,974 73.44% $306,600.00 $306,600.00 TOTAL OCCUPIED 13,374 26.56% $89,854.00 $89,854.00 TOTAL 50,348 100.00% $396,454.00 $396,454.00 4 Comments MG = Modified Gross Lease, NN = Double Net Lease, OO = Owner-Occupied, M2M = Month-to-month A majority of the MG leases feature 5% bumps annually and auto-renewals. The square footage figures are estimates, no exact numbers are on file. In June 2014 the adjacent building was demolished, which created 21 new retail parking spaces. Ohio Telnet is a fixed telecommunications installation that cannot be moved; it provides high-speed Internet benefiting the tenants.

INVESTMENT AND OFFERING HIGHLIGHTS THE ARCADE 15 ARCADE PLACE NEWARK, OH 43055 Mixed-use downtown retail center surrounded by credit retailers Upside potential with 20,000 RSF of apartment/office space ready for restoration Mall has access from 3 streets & sits adjacent to Chase Bank Iron trusses & glass skylights highlight construction & detailed European design 10.44% cap rate provides sizeable investment return 21 new retail parking spaces created nearby in June 2014 Prime location as nearly $50MM in downtown revitalization projects scheduled or completed since 2014. OFFERING PRICE $700,000 CAP RATE 10.44% PRICE SF $14.33 Gross Leasable Area 48,848 SF 5

THE ARCADE NEWARK, OH 6

INVESTMENT OVERVIEW Marcus & Millichap is pleased to present for purchase this historic indoor mall in Newark, Ohio. The Arcade is a mixed use shopping center in excess of 45,000 square feet, offering three bars and 14 total retail spaces. In addition to the 14,000 square feet of 1st floor retail space, there is approximately 20,000 rentable square feet of office and multi-family space to rent or redevelop. 2,000 of that square feet is currently occupied with apartment tenants, while the remainder is ready for restoration. That 20,000 rentable square feet is currently divided into 10 separate multi-family units, but could be made into 20 spaces depending on the configuration. Positioned in the heart of downtown Newark, this.73 acre parcel has points of ingress & egress from 3 streets. Adjacent to Chase Bank s drive through retail location and office tower, The Arcade offers immediate access to Rt. 13, the main thoroughfare to Rt. 16, 79, & I-70. Retailers in the immediate area include McDonald s, Wendy s, UDF, Mobil, Huntington Bank, PNC Bank, & H&R Block in addtion to Chase. A Huntington Bank is directly across the street, with the Licking County Courthouse nearby. Center Pub carries an NOI of $21,750/year and is a strong sales performer in downtown Newark. Club 2k is on a court-negotiated lease; several of the remaining tenants rent month-to-month to allow for movement with increasing market rates. Opened for business in 1908, the glass-enclosed roof was completed the following year, making The Arcade one of the first covered malls in the United States. With a population of over 47,000, Newark is the 20th largest city in Ohio and serves as the corporate headquarters of basket-maker Longaberger. Owens Corning Fiberglass houses its main factory in Newark, and State Farm Insurance has a regional headquarter there. 7

LEASE AND OFFERING SUMMARY THE OFFERING Property The Arcade Property Address 15 Arcade Place Newark, OH 43055 Price $700,000 Capitalization Rate 10.44% Price/SF $14.33 PROPERTY DESCRIPTION LEASE SUMMARY Property Subtype Mixed Use Multi Tenant Retail Center Retail spaces 14 Retail spaces, 10 Multi-Family Units, 3 Bars Retail Occupancy 72.52% Overall Occupancy 42.44% Cap Rate - Pro Forma %40.66 Year Built 1909 Gross Leasable Area Zoning Type of Ownership Acres Parking 48,848 SF Commercial Fee Simple.73 Acres 13 Spaces and Street Parking ANNUALIZED OPERATING INFORMATION Net Operating Income (Current) $73,105 Net Operating Income (Pro Forma) $284,653 LEASE SUMMARY YEAR ANNUAL RENT MONTHLY RENT RENT/SF CAP RATE Current $93,519 $7,793 $10.36 6.75% 2033 $102,871 $8,573 $11.40 7.43% 2038 $113,185 $9,432 $12.54 8.17% 2043 $124,474 $10,373 $13.79 8.98% 2048 $136,921 $11,410 $15.17 9.88% 8

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MARKET OVERVIEW NEWARK, OH With a population of over 47,000, Newark is the 20th largest city in Ohio and serves as the corporate headquarters of basket-maker Longaberger. Owens Corning Fiberglass houses its main factory in Newark, and State Farm Insurance has a regional headquarters there. Newark is part of the Columbus, Ohio metropolitan area located 45 minutes from Downtown Columbus and 30 minutes from John Glenn International Airport. Newark is a city that has seen steady growth and development in recent years and is home to many industrial parks belonging to major companies such as Boeing, General Electric, and DOW Chemical. In 1909, The Arcade, the subject property, was opened. Modeled after innovative European buildings, it became one of Newark s first successful retail emporiums and was later used as a reference for what become the modern shopping mall making The Arcade one of America s first shopping malls. Downtown Newark, OH Newark is also home to famous Earthworks mounds built 2,000 years ago by the Hopewell Indians which brings in tourists from around the US each year. NEWARK S TOP EMPLOYERS (By Employee Number) 1) Licking County Memorial Hospital 1773 Employees 2) Licking County Government 1013 Employees 3) State Farm Insurance 976 Employees 4) Park National Bank 911 Employees 5) Denison University 820 Employees 6) Newark City Government 750 Employees 7) Anomatic Corporation 700 Employees 8) Englefield Oil Co. 676 Employees 9) Ownes Corning Corporation 643 Employees 10) Boeing Guidance Repair Center - 430 Employees Facebook recently announced plants for a $750 Million data center set to open in 2019 in New Albany, OH. Just 25 minutes from downtown Newark which will add 100 jobs and increased attention to the area from major tech companies. Former Headquarters of Longaburger Basket Company in Newark, OH. This iconic building was recently purchased to be repurposed as multi purpose office space. 12

DEMOGRAPHICS POPULATION 1 MILES 3 MILES 5 MILES 2019 Projection 11,055 47,474 69,017 2014 Estimate 11,203 47,114 67,531 2010 Census 11,109 46,820 67,002 2000 Census 11,613 46,415 64,916 HOUSEHOLDS 1 MILE 3 MILES 5 MILES 2019 Projection 4,374 19,730 28,462 2014 Estimate 4,425 19,489 27,720 2010 Census 4,378 19,321 27,438 2000 Census 4,689 19,198 26,122 INCOME (2014) 1 MILE 3 MILES 5 MILES Average $37,029 $52,014 $44,381 Median $26,799 $39,235 $44,381 Per Capita $14,866 $21,742 $24,459 OCCUPIED HOUSING UNITS (2014) 1 MILE 3 MILES 5 MILES Owner Occupied 40.58% 57.59% 62.35% Renter Occupied 59.42% 42.41% 37.65% Vacant 13.97% 9.26% 8.29% 13

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THE ARCADE NEWARK, OH PRESENTED BY JUSTIN FENN National Office and Industrial Properties Group Yozwiak Fenn Group Columbus Office Office (614) 360-9048 justin.fenn@marcusmillichap.com License: SAL.2002011928 DAN YOZWIAK First Vice President Investments Yozwiak Fenn Group Columbus Office Office (614) 360 9036 dan.yozwiak@marcusmillichap.com License: OH: SAL.2008003600