REPRESENTATIVE PHOTO HOBBY LOBBY CADILLAC, MI

Overview HOBBY LOBBY 8866 E. 34 ROAD, CADILLAC, MI 49601 $5,961,340 PRICE 6.50% CAP LEASEABLE SF 50,323 SF LEASE EXPIRATION 2033 *20 YEAR ROOF WARRANTY LAND AREA 4.5 Acres YEAR BUILT 2018 LEASE TYPE LL Responsible for Roof & Structure* PARKING 170 Spaces Brand new 15-year lease with four 5-year options. Rental increases every five years. $4 billion in 2016 revenues. Forbes ranked #94. Average household income within a 1-mile radius is over $80k. REPRESENTATIVE PHOTO 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. Buyer must verify the information and bears all risk for any inaccuracies. 2

Investment Highlights Contact the team THE OFFERING provides an opportunity to acquire a Hobby Lobby in Cadillac, Michigan. Hobby Lobby is a privately held company with 2016 revenue of over $4 billion. The company currently has over 32,000 employees and over 700 locations. Hobby Lobby is ranked #94 on Forbes list of America s Largest Private Companies. The property has excellent intrinsic qualities given the low rent of $7.70 per foot and asking price of $118.46 per square foot of building on 4.5 acres. JOHN ANDREINI jandreini@capitalpacific.com PH: 415.274.2715 CA BRE#: 01440360 THE RETAIL MARKET Immediate area retailers include Walmart Supercenter, TJ Maxx, Meijer, The Home Depot, Verizon and many others. The subject property is located in the core of Wexford County serving a greater population of 33,000. SURROUNDING AREA RETAIL IN CONJUNCTION WITH MI LICENSED BROKER: Daniel H. Kukes Landmark Investment Sales dkukes@landmarkcres.com 248.488.2620 HOBBY LOBBY IS RANKED #94 ON FORBES LIST OF AMERICA S LARGEST PRIVATE COMPANIES. 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. Buyer must verify the information and bears all risk for any inaccuracies. 3

OLD US HIGHWAY 131 Aerial 22,900 VPD PROPOSED E BOON ROAD BUS 131 BUS GRAND RAPIDS N MITCHELL STREET 131 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. Buyer must verify the information and bears all risk for any inaccuracies. 4

Income & Expense SURROUNDING AREA RETAIL PRICE $5,961,340 Price Per Square Foot: $118.46 Capitalization Rate: 6.50% Total Rentable Area (SF): 50,323 Lot Size (AC): 4.50 STABILIZED INCOME PER SQUARE FOOT Scheduled Rent $7.70 $387,487 Effective Gross Income $7.70 $387,487 LESS PER SQUARE FOOT Taxes NNN $0.00 Insurance NNN $0.00 Total Operating Expenses NNN $0.00 EQUALS NET OPERATING INCOME $387,487 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. Buyer must verify the information and bears all risk for any inaccuracies. 5

Rent Roll TENANT INFO LEASE TERMS RENT SUMMARY TENANT NAME SQ. FT. PERCENT OF GLA CURRENT RENT MONTHLY RENT YEARLY RENT MONTHLY RENT/FT YEAR RENT/FT Hobby Lobby 50,323 1 5 $387,487 $32,291 $387,487 $0.64 $7.70 6 10 $34,387 $412,649 $0.68 $8.20 11 15 $36,484 $437,810 $0.72 $8.70 Option 1 16 20 $38,581 $462,972 $0.77 $9.20 Option 2 21 25 $40,678 $488,133 $0.81 $9.70 Option 3 26 30 $42,775 $513,295 $0.85 $10.20 Option 4 31 35 $44,871 $538,456 $0.89 $10.70 TOTALS: 50,323 $387,487 $32,291 $387,487 $0.64 $7.70 *STORE SCHEDULED TO OPEN IN FEBRUARY 2018 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. Buyer must verify the information and bears all risk for any inaccuracies. 6

Lease Abstract PREMISE & TERM TENANT Hobby Lobby BUILDING SF 50,323 SF LEASE TYPE Corporate TERM 15 Years RENT COMMENCEMENT February 2018 EXPIRATION 2033 OPTIONS Four 5-year Options RENT BASE RENT DATE RANGE MONTHLY RENT ANNUAL RENT 1-5 $32,291 $387,487 6-10 $34,387 $412,649 11-15 $36,484 $437,810 EXPENSES TAXES Tenant is responsible for the direct payment of property taxes to the taxing authority. INSURANCE Tenant shall maintain all-risk (special form) commercial property insurance with limits sufficient to replace one hundred percent (100%) of the Landlord s parcel improvements; general liability insurance with a combined single limit of not less than $3,000,000. UTILITIES Tenant is responsible for direct payment of all utilities to the appropriate billing authority. TENANT S OBLIGATIONS Tenant is responsible for all maintenance and repair to the entirety of all nonstructural portions of the premise including HVAC. LANDLORD S OBLIGATIONS Landlord is responsible for roof (20-year roof warranty) and structure. OPTION RENTS DATE RANGE MONTHLY RENT ANNUAL RENT #1. 16-20 $38,581 $462,972 #2. 21-25 $40,678 $488,133 #3. 26-30 $42,775 $513,295 #4. 31-35 $44,871 $538,456 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. Buyer must verify the information and bears all risk for any inaccuracies. 7

Site Plan BUS 131 E 34 ROAD 50,323 RENTABLE SF 4.5 ACRES 170 SPACES REPRESENTATIVE PHOTO This site plan is a rendering that has been created based on sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 8

Tenant Overview ABOUT HOBBY LOBBY Hobby Lobby Stores, Inc., headquartered in Oklahoma City, OK, operates over 700 stores across 47 states, averaging 55,000 square feet each. Hobby Lobby is an industry leading retailer offering more than 70,000 arts, crafts, hobbies, home décor, holiday, and seasonal products. While Hobby Lobby continues to grow steadily, the company carries no long-term debt. Corporate headquarters include a 9.2 millionsquarefoot manufacturing, distribution, and office complex in Oklahoma City. Hobby Lobby also maintains offices in Hong Kong and Shenzhen, China. Hobby Lobby is ranked #94 on Forbes list of America s Largest Private Companies. REPRESENTATIVE PHOTO $4B 2016 REVENUES 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. Buyer must verify the information and bears all risk for any inaccuracies. 9

Demographics POPULATION CADILLAC 3-MILE 5-MILES 10-MILES 2010 11,448 16,660 30,303 2017 11,808 16,983 30,614 2022 12,088 17,273 30,926 2017 HH INCOME 1-MILE 3-MILES 5-MILES Average $80,289 $57,142 $58,388 Median $55,896 $43,170 $43,488 GRAND RAPIDS (95 MILES) THE AVERAGE HOUSEHOLD INCOME WITHIN A 1-MILE RADIUS IS OVER $80K 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. Buyer must verify the information and bears all risk for any inaccuracies. 10

Location Overview CADILLAC, MICHIGAN GRAND RAPIDS, MICHIGAN CADILLAC is the county seat of Wexford County, Michigan, with a population of 32,775. It situated just north of Grand Rapids, and south of Traverse City. Cadillic is home to Munson Hospital, Baker College, and Lake Cadillac. Munson Healthcare Cadillac Hospital provides quality health care to more than 80,000 residents across seven counties. The hospital staffs 49 acute-care beds with 65 active physicians. EMPLOYMENT GROWTH EMPLOYMENT IN WEXFORD COUNTY: From 2014 to 2015, employment in Wexford County, MI, grew at a rate of 1.74%, from 13,211 employees to 13,441 employees. The most common industries in Wexford County, MI, by number of employees are Manufacturing; Healthcare & Social Assistance; and Retail trade. Tourism is a vital component of Cadillac s economic health. It is estimated that 1,000,000 people visit annually. Cadillac is a four-season destination for vacationers and outdoor enthusiasts, due in large part to the natural assets found in the area: Lakes Cadillac and Mitchell, state and national forests, recreational trails, etc. 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. Buyer must verify the information and bears all risk for any inaccuracies. 11

We d love to hear from you. JOHN ANDREINI jandreini@capitalpacific.com PH: 415.274.2715 CA BRE#: 01440360 IN CONJUNCTION WITH MI LICENSED BROKER: Daniel H. Kukes Landmark Investment Sales dkukes@landmarkcres.com 248.488.2620 CAPITAL PACIFIC COLLABORATES. CLICK HERE TO MEET OUR SAN FRANCISCO TEAM: CHRIS KOSTANECKI DAVE LUCAS JOE CACCAMO ZEB RIPPLE RICK SANNER JOHN ANDREINI CHRIS PETERS AARON SUSMAN ZANDY SMITH JACK NAVARRA 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. Buyer must verify the information and bears all risk for any inaccuracies.