Shaker Commons Shaker Heights, Ohio (Cleveland MSA) Offering Memorandum

Shaker Heights, Ohio (Cleveland MSA) Offering Memorandum

SHAKER COMMONS Shaker Heights, Ohio (Cleveland MSA) Exclusively listed by: Investment Sales: exclusively listed OFFICES NATIONWIDE www.marcusmillichap.com Scott Wiles Senior Vice President Investments Senior Director, National Retail Group CLEVELAND Tel: (216) 264-2026 Fax: (614) 474-1696 Scott.Wiles@marcusmillichap.com License: OH SAL.2005013197 Erin Patton Senior Vice President Investments Senior Director, National Retail Group COLUMBUS Tel: (614) 360-9035 Fax: (614) 474-1696 Erin.Patton@marcusmillichap.com License: OH SAL.2004010274 Craig Fuller Senior Vice President Investments Senior Director, National Retail Group CLEVELAND Tel: (216) 264-2043 Fax: (614) 474-1696 Craig.Fuller@marcusmillichap.com License: OH SAL.2008001551

Table of Contents Offering Highlights... 2 Investment Overview... 3 Summary of Terms.... 5 Property Detail... 10 Regional Map... 11 Local Map... 12 Long Range Retailer Aerial... 13 Short Range Retailer Aerial.... 14 Site Plan.... 15 Parcel Map.... 16 Schedule of Prospective Cash Flow... 21 Assumptions... 22 Rent Roll... 23-24 Tenant Summaries... 25-28 Demographic Summary... 30-31 Location Overview... 32 Cleveland Market Overview... 33-39

summary

Offering Highlights 16708-16834 Chagrin Boulevard Shaker Heights, Ohio 44120 Offering Summary Price $4,455,000 Cap Rate 8.63% Current Occupancy 95.27% Gross Leasable Area (GLA) 32,653 SF Price/SF $136.43 Year Built/Renovated 1933-1941/2007 Lot Size 0.97 Acres Vital Data Net Operating Income - Year 1 $384,516 Year 1 Cash-on-Cash Return 14.02% 10 Year Leveraged IRR 19.32% Major Tenants Major Area Employers Demographics TENANT GLA LEASE EXP LEASE TYPE MAJOR EMPLOYERS SERVICE 1-MILE 3-MILES 5-MILES Sherwin-Williams 4,859 SF Aug-2022 NNN Progressive Corp. Financial 2014 Population 21,518 141,431 32,408 Enlight Advisors 4,529 SF Mar-2018 NNN Chagrin Wine 4,000 SF Apr-2025 NNN Touch of Italy 3,420 SF Sep-2021 NNN New Millennium Suites 2,048 SF Feb-2022 NNN The Cleveland Clinic University Hospital Cleveland Sherwin-Williams Co. MetroHealth System KeyCorp Healthcare Healthcare Manufacturing Healthcare Financial 2019 Population 21,105 136,944 321,970 2014 Households 8,984 59,555 140,425 2019 Households 8,853 58,211 137,206 Median HH Income $45,512 $38,083 $35,700 Per Capita HH Income $31,003 $28,208 $25,031 Average HH Income $74,176 $66,237 $58,363 2

Investment Overview Marcus & Millichap, on behalf of ownership as its exclusive advisor, is pleased to bring to market in Shaker Heights, Ohio. is a multi-tenant urban high-street retail and office property consisting of six buildings totaling 32,653 square feet. The subject property is currently 95 percent occupied with a complementary tenant mix consisting of retailers, service-oriented businesses, restaurants, and offices. Well-known tenants include Sherwin- Williams, Pizza Hut, Mr. Hero, Cricket Wireless, Boost Mobile, and State Farm, and local tenants include AB Diamond Group, New Millennium Salon, Chagrin Wine, Touch of Italy, RDL Architects (sub-lessee to Enlight Advisors), Al Nola Shoe Repair, and East China Restaurant. A majority of tenants are leased to triple-net terms. was completely renovated in 2007, with upgrades including new roofing systems, new HVAC and plumbing, façade enhancements, interior enhancements, and replacement of pedestrian walkways. Upside exists in leasing the 1,546-square-foot vacancy at market rates, and there is ease-of-management to the investment considering the parking lots for the property are city-owned/dedicated and the Landlord does not have to maintain them. benefits from its extremely dense infill location, with 21,518 residents within one mile, 141,431 residents within three miles, and 332,408 residents within five miles. The property is surrounded by densely populated streets of single-family and multi-unit homes, as well as several multi-family apartment complexes. Average household income exceeds the national average, at $74,176 within one mile, and $85,000 for the City of Shaker Heights as a whole. Located on Chagrin Boulevard, traffic counts are strong with 19,512 cars passing the property each day. As an urban street retail development, is highly accessible to pedestrian traffic and public transportation, with seven RTA bus and rapid stations in a quarter mile radius. The subject property is located at main and main in Shaker Heights, directly across from the 123,197-square-foot Shaker Town Center anchored by a full-service Heinen s grocery store, with other tenants including Dollar Tree, Advance Auto Parts, Baskin Robbins, GameStop, Boston Market, Papa John s, Salon Lofts, and Subway to name a few. Additional national retailers in the immediate vicinity include Huntington Bank, CVS, Walgreens, PNC Bank, and Firestone. Shaker Heights is a historic and widely renown inner-ring suburb on Cleveland s Eastside, seven miles from Downtown Cleveland. The community is lauded for its historically significant and preserved homes, tree-lined streets, and two nationally-recognized private schools, Hathaway Brown School and University School, as well as the nationally-renowned Shaker Heights Public Library, which is just steps from the subject property. In 2015, Shaker Heights was ranked the #17 most educated city in all of America with 96% of its residents having a high school diploma or better, and 65% holding a college degree or better. Investment Highlights 95 Percent Occupied, 32,653 SF Street Retail Center in Shaker Heights, Ohio (Cleveland MSA) Shaker Heights Location Historic and Widely Renown Inner-Ring Suburb on Cleveland s Eastside Extremely Dense Infill Location 21,518 Residents in One Mile, 141,431 Residents in Three Miles, and 332,408 in Five Miles Complete Renovation in 2007 Including New Roofing, HVAC, Plumbing, Façade Upgrades, Interior Upgrades & Walkway Replacement Complimentary Mix of Retailers, Service-Oriented Businesses, Restaurants & Offices - Majority of Tenants are NNN Well-Known Tenants Include Sherwin-Williams, Pizza Hut, Mr. Hero, Cricket Wireless, Boost Mobile & State Farm Upside in Leasing 1,546 SF Vacancy at Market Rates Year 1 Cash-on-Cash Return of 14.02% & 10-Yr IRR of 19.32% at Projected Financing Terms Main & Main Location Across from Shaker Town Center with High-End Grocer Heinen s, Dollar Tree, Advance Auto Parts, Baskin Robbins, GameStop, Salon Lofts, Boston Market, and Many More Ease of Management Parking Lots Servicing the Property are Owned/ Maintained by City and Require Zero Maintenance from Landlord Highly Accessible 19,512 Cars per Day on Chagrin Boulevard, 7 Bus Stops within ¼ Mile, and Walkable to the Thousands of Residents in the Immediate Vicinity 7 Miles from Downtown Cleveland 3

Summary of Terms Interest Offered Fee simple interest in, a 32,653-square foot shopping center located at 16708-16834 Chagrin Boulevard, Shaker Heights, Ohio 44120. Terms of the Sale is offered at $4,455,000 based on a capitalization rate of 8.63%. The net operating income figures for the Property assume a fiscal year starting June 2017. Property Tours Prospective purchasers are encouraged to visit the subject property prior to submitting offers. However, all property tours must be arranged with the Marcus & Millichap listing agents. Please do not contact the tenants, on-site management or staff without prior approval. Proposed Financing NON-RECOURSE FINANCING Proposed or Existing Proposed New Loan Amount $3,341,250 Loan-to-Purchase Price Ratio 75.00% Interest Rate 4.60% Term 10 Year Amortization Period 25 Year Loan Constant 6.74% Annual Debt Service Payment (P&I only) $225,143 Maturity May-2027 Outstanding Loan Balance at Maturity $2,436,251 5

description

Property Details THE OFFERING Property Property Address SITE Gross Leasable Area Ownership 16708-16834 Chagrin Boulevard Shaker Heights, Ohio 44120 32,653 SF Fee Simple Year Built/Renovated 16708-16710 Chagrin Blvd - 1933/2007 16730-16732 Chagrin Blvd - 1938/2007 16800-16812 Chagrin Blvd - 1938/2007 16814 Chagrin Blvd - 1934/2007 16822 Chagrin Blvd - 1936/2007 16828-16834 Chagrin Blvd - 1941/2007 Number of Stories Two Stories Plus Basements Parking 12 Free Surface Spaces Included in Sale, Approximately 135 Free Surface Spaces On-Street at Store Front and in Municipal Lot Located at the Rear of Parking Ratio 4.47 per 1,000 SF Topography Level PARCELS The property consists of 7 tax parcels APN 735-28-028 735-28-027 735-28-026 735-28-025 735-28-024 735-28-023 735-28-016 Acres 0.97 Acres CONSTRUCTION Foundation Framing Exterior Parking Surface Roof Age of Roof MECHANICAL HVAC Fire Protection Utilities ZONING PUD Concrete Slab Masonry Masonry On-Street: Concrete Minucipal Lot: Asphalt Flat Rubber Composite 10 Years Roof Mounted To Code All Local Providers Commercial ACCESS POINTS Store Fronts Lining Street with Parking Directly In Front of Stores and Access to a Municipal Lot Located in the Rear with One Entrance from Kenyon Road and Two Entrances from Chagrin Blvd 10

Regional Map SHAKER COMMONS 11

Local Map SHAKER COMMONS 12

Long Range Retailer Aerial 13

Short Range Retailer Aerial 14

Site Plan 15

Parcel Map 16

analysis

Schedule of Prospective Cash Flow YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 MAY-2018 MAY-2019 MAY-2020 MAY-2021 MAY-2022 MAY-2023 MAY-2024 MAY-2025 MAY-2026 MAY-2027 Potential Gross Revenue Base Rental Revenue $445,798 $454,830 $458,538 $460,215 $461,455 $464,436 $465,390 $464,522 $465,068 $465,866 Absorption & Turnover Vacancy (20,485) (1,352) (3,527) (3,393) (8,343) (7,383) (4,807) (8,967) (3,746) (10,868) Scheduled Base Rental Revenue 425,313 453,478 455,011 456,822 453,112 457,053 460,583 455,555 461,322 454,998 Expense Reimbursement Revenue Real Estate Taxes 64,114 69,807 73,587 75,265 81,786 86,585 91,760 93,091 95,983 96,559 Insurance 8,710 9,483 9,998 10,225 11,111 11,764 12,467 12,647 13,040 13,117 Common Area Maintenance 51,581 56,599 59,468 60,700 66,061 70,170 74,459 75,400 77,929 78,154 Management 17,631 19,172 20,156 20,328 22,297 23,710 25,104 25,025 25,556 25,255 Total Reimbursement Revenue 142,036 155,061 163,209 166,518 181,255 192,229 203,790 206,163 212,508 213,085 Total Potential Gross Revenue 567,349 608,539 618,220 623,340 634,367 649,282 664,373 661,718 673,830 668,083 General Vacancy (29,143) (27,560) (27,944) (23,792) (25,450) (28,652) (24,567) (30,133) (23,080) Effective Gross Revenue 567,349 579,396 590,660 595,396 610,575 623,832 635,721 637,151 643,697 645,003 Operating Expenses Real Estate Taxes 82,530 84,181 85,864 87,581 89,333 91,120 92,942 94,801 96,697 98,631 Insurance 11,213 11,437 11,666 11,899 12,137 12,380 12,628 12,880 13,138 13,401 Common Area Maintenance 66,396 68,416 69,708 71,109 72,358 73,846 75,420 76,783 78,510 79,831 Management Fee 22,694 23,176 23,626 23,816 24,423 24,953 25,429 25,486 25,748 25,800 Total Operating Expenses 182,833 187,210 190,864 194,405 198,251 202,299 206,419 209,950 214,093 217,663 Net Operating Income 384,516 392,186 399,796 400,991 412,324 421,533 429,302 427,201 429,604 427,340 Leasing & Capital Costs Tenant Improvements 2,448 6,388 6,147 15,111 13,372 6,005 9,810 16,159 11,176 Leasing Commissions 930 2,361 1,920 5,296 3,944 1,791 3,283 5,327 3,555 Capital Reserves 3,265 3,331 3,397 3,465 3,534 3,605 3,677 3,751 3,826 3,902 Total Leasing & Capital Costs 3,265 6,709 12,146 11,532 23,941 20,921 11,473 16,844 25,312 18,633 Cash Flow Before Debt Service 381,251 385,477 387,650 389,459 388,383 400,612 417,829 410,357 404,292 408,707 Debt Service Interest Payments 152,172 148,743 145,154 141,396 137,461 133,342 129,029 124,513 119,785 114,835 Principal Payments 72,971 76,400 79,989 83,747 87,682 91,801 96,114 100,630 105,358 110,308 Total Debt Service 225,143 225,143 225,143 225,143 225,143 225,143 225,143 225,143 225,143 225,143 Net Cash Flow After Debt Service $156,108 $160,334 $162,507 $164,316 $163,240 $175,469 $192,686 $185,214 $179,149 $183,564 21

Assumptions Property Timing Start of Analysis End of Analysis Analysis Period Jun-2017 May-2027 10 Years Property Operating Parameters RENTS Square Feet Per Year Lease Type Varies NNN GENERAL VACANCY Year 1 As-Is Thereafter 5% CAPITAL EXPENSE (YEAR 1) Capital Reserves $3,265 GROWTH RATES Market Rents Year 1 2% Year 2 2% Year 3 2% Year 4 2% Thereafter 2% Operating Expenses 2% Real Estate Taxes 2% Capital Reserves 2% CPI 2% OPERATING EXPENSES (YEAR 1) Real Estate Taxes* $82,530 Insurance $11,213 Common Area Maintenance $66,396 Management $22,694 Total Operating Expenses $182,833 Amount Reimbursed by Tenants $142,036 *Current Assessed Value of $1,435,800 LEASING ASSUMPTIONS Renewal Probability 80% Market Rent (SF/YR) Varies Downtime 6 Months Tenant Improvements $10/SF Leasing Commissions 5% Rent Escalation None Lease Term 5-10 Years Lease Type NNN 22

Rent Roll Tenant Name Type & Suite Number Lease Dates & Term Rate & Amount per Year per Month Floor SF Bldg Share Changes on Changes to Other Options/ % Rent Lease Type 1 Cricket Wireless $11.85 - - - NNN Retail, Suite: 16708 1,870 $22,160 Aug-2012 to Sep-2020 5.73% $0.99 98 Months $1,847 2 Mr. Hero $15.00 - - - NNN Retail, Suite: 16710 1,870 $28,050 Aug-2014 to Jul-2019 5.73% $1.25 60 Months $2,338 3 Boost Mobile $14.75 Jun-2017 $15.00 - NNN Retail, Suite: 16730 1,026 $15,134 Jun-2018 $15.26 Apr-2011 to May-2020 3.14% $1.23 110 Months $1,261 4 Sherwin Williams $11.50 Sep-2018 $12.65 - NNN Retail, Suite: 16732 4,859 $55,879 Sep-2007 to Aug-2022 14.88% $0.96 180 Months $4,657 5 Pizza Hut $14.57 Nov-2021 $16.10 (1) 5 Year NNN Retail, Suite: 16800 1,256 $18,300 Nov-2011 to Oct-2021 3.85% $1.21 120 Months $1,525 6 VACANT #16802 $14.00 - - - NNN Retail, Suite: 16802 1,546 $21,644 Jun-2018 to May-2023 4.73% $1.17 60 Months $1,804 7 New Millenium Suites $15.00 Apr-2019 $16.00 - NNN Retail, Suite: 16804 2,048 $30,720 Mar-2012 to Mar-2022 6.27% $1.25 121 Months $2,560 8 New Millenium Salon $16.00 - - - NNN Retail, Suite: 16808 1,512 $24,192 Aug-2015 to Mar-2022 4.63% $1.33 80 Months $2,016 9 Robin Gorman State Farm $10.18 Jul-2018 $11.79 (1) 5 Year Gross Retail, Suite: 16812 1,120 $11,402 Jul-2008 to Jun-2018 3.43% $0.85 120 Months $950 23

Rent Roll Tenant Name Type & Suite Number Lease Dates & Term Rate & Amount per Year per Month Floor SF Bldg Share Changes on Changes to Other Options/ % Rent Lease Type 10 Chagrin Wine $17.00 May-2020 $17.00 (1) 5 Year NNN Retail, Suite: 16814 4,000 $68,000 May-2010 to Apr-2020 12.25% $1.42 120 Months $5,667 11 GWMKD $13.33 Oct-2017 $13.68 - Base Yr NN Retail, Suite: 16822 3,420 $45,589 Oct-2018 $14.04 Nov-2016 to Sep-2021 10.47% $1.11 Oct-2019 $14.39 59 Months $3,799 Oct-2020 $14.74 12 RDL Architects (Sub-lesseeof Enlight Advisors) $11.50 - - - NNN Office, Suite: 16828 4,529 $52,084 Mar-2013 to Mar-2018 13.87% $0.96 73 Months $4,340 13 Al Nola Shoe Repair $10.53 Aug-2017 $11.53 - NNN Retail, Suite: 16830 1,197 $12,604 Aug-2019 $12.03 Aug-2012 to Jul-2022 3.67% $0.88 Aug-2021 $12.53 120 Months $1,050 14 AB Diamond Group $16.00 - - (1) 1 Year Gross Retail, Suite: 16832 1,200 $19,200 Mar-2017 to Mar-2018 3.68% $1.33 13 Months $1,600 15 East China $16.50 Dec-2017 $16.75 - NNN Retail, Suite: 16834 1,200 $19,800 Dec-2018 $17.00 Dec-2009 to Dec-2019 3.68% $1.38 121 Months $1,650 Total Occupied Square Feet 31,107 Total Available Square Feet 1,546 24

Tenant and Lease Summaries Sherwin Williams The Sherwin-Williams Company is an American Fortune 500 company in the general building materials industry. The company, with headquarters in Cleveland, Ohio, primarily engages in the manufacture, distribution, and sale of paints, coatings and related products to professional, industrial, commercial, and retail customers primarily in North and South America and Europe. The company is mostly known for its Sherwin-Williams Paints line. On March 20, 2016, Sherwin-Williams announced the acquisition of Valspar for approximately $9 billion. Rent Commencement: Sep-2007 Lease Expiration: Aug-2022 Gross Leasable Area: 4,859 SF Option Term: N/A Pro Rata Share of Project: 14.88% Headquartered: Cleveland, OH No. of Locations: 4,339 Website: www.sherwin-williams.com NYSE: SHW RDL Architects RDL Architects, Inc. grew out of Ron Lloyd s desire for freedom of expression and his commitment to providing innovative design and superior customer service to his clients. After a successful career managing the design studios of nationally recognized firms, Ron founded RDL Architects, Inc. in 1994 in Cleveland, Ohio. As a top architect in Cleveland, Ron has since transformed his architecture firm from a one-person studio into a multidisciplinary, award-winning, nationwide practice. Today, the firm is comprised of master architects, planners, designers and MBAs who specialize in: Architecture, Placemaking, Interior Design and Environmental Graphic Design. With significant experience in Market Rate Housing, Affordable Housing, Senior Living, Retail, Mixed-Use Development and Office, we re committed to being your project partner, from site analysis to the day your doors open. Rent Commencement: Mar-2013 Lease Expiration: Mar-2018 Gross Leasable Area: 4,529 SF Option Term: N/A Pro Rata Share of Project: 13.87% Headquartered: Shaker Heights, OH No. of Locations: 1 Website: www.rdlarchitects.com 25

Tenant and Lease Summaries Chagrin Wine & Beverage Chagrin Wine & Beverage is a privately held company in Cleveland, OH that was established in 2004. Categorized under Liquor Stores it is a single Location business.current estimates show this company has an annual revenue of $500,000 and employs a staff of approximately 4. Rent Commencement: May-2010 Lease Expiration: Apr-2020 Gross Leasable Area: 4,000 SF Option Term: (1) 5-Year Pro Rata Share of Project: 12.25% Headquartered: Shaker Heights, OH No. of Locations: 1 Website: N/A A Touch of Italy A Touch of Italy, which has been in the location for 34 years and was accustom to enjoying a growing clientele of people who would come to enjoy its famous pizza, pasta dinners, subs and sandwiches. A Touch of Italy s owner Michael Srp used to own a Master Pizza franchise at Cedar and Lee roads. The franchise ended and Srp concentrated on A Touch of Italy, building the business and expanding the restaurant. Today he is joined in the kitchen with his son Michael Jr., who is also an owner. What the restaurant lacks in atmosphere it makes up for in the quality of the food. Hours are 11 a.m. to midnight Monday through Saturday with the bar open until 2:30 a.m. On Sunday, only bar foods such as pizza, wings and sides are available and hours are 1 p.m. to 2:30 a.m. Rent Commencement: Nov-2016 Lease Expiration: Sep-2021 Gross Leasable Area: 3,420 SF Option Term: N/A Pro Rata Share of Project: 10.47% Headquartered: Shaker Heights, OH No. of Locations: 1 Website: https://www.facebook.com/touch-of-italy- A-233564613324466/ 26

Tenant and Lease Summaries New Millennium Suites New Millennium Suites is an innovative concept that has revolutionized the salon industry. The Suites are designed to give established professional s freedom to operate their own business in a space that reflects their own personal style.suites type salons differ from traditional salons in some very distinct and important ways. In traditional salons, stylists work at stations that are either out in the open or are semi-private. Shampooing is done at a central location where there are usually multiple shampoo stations. Suites type salons offer each stylist his or her own private suite, with four walls and a door. Within that suite is everything needed to run a small one or two person salon: A styling station and chair, shampoo bowl and chair, hair dryer, and other furnishings the stylist may choose. Nail suites, skin care suites, and massage suites are, of course, furnished differently. These individual Suites offer privacy and individual attention to guest. Beauty professionals have the opportunity to personalize, furnish and decorate the suite. But most importantly they have the opportunity to manage their business as they choose be their own boss, set their own hours, retail products, and keep the profits. Rent Commencement: Mar-2012 Lease Expiration: Mar-2022 Gross Leasable Area: 2,048 SF Option Term: N/A Pro Rata Share of Project: 6.27% Headquartered: Shaker Heights, OH No. of Locations: 1 Website: www.newmillennium.com Mr. Hero Mr. Hero is a restaurant chain selling submarine sandwiches in Northeast Ohio. It began in 1965 when its founder Robert Coulson opened a Cleveland restaurant and has been expanding ever since. In the beginning years of the business, Mr. Hero stores were family-run. In the 1980s and early 1990s, the company operated several locations under the name Mr. Philly. Robert Coulson serves as the chairman and founder of the company. Via its franchising arm, Restaurant Developers Corporation, it has a presence as far away as Toledo and Columbus and continues to grow. Rent Commencement: Aug-2014 Lease Expiration: Jul-2019 Gross Leasable Area: 1,870 SF Option Term: N/A Pro Rata Share of Project: 5.73% Headquartered: Cleveland, OH No. of Locations: 104 Website: www.mrhero.com 27

Tenant and Lease Summaries Cricket Wireless Cricket Wireless is a prepaid wireless service provider in the United States. Cricket Wireless offers voice, text, and data and is a wholly owned subsidiary of AT&T Inc. As of 2011, it provided prepaid wireless services to approximately 5 million subscribers in the United States. Cricket Wireless was founded in 1999 by Leap Wireless International, Inc. On July 12, 2013, AT&T Inc. agreed to acquire Cricket s parent company Leap Wireless International for $1.2 billion. The merger was approved by the Federal Communications Commission on March 13, 2014, and later that same day, Leap Wireless announced the completion of its acquisition by AT&T. The Cricket brand name has been in the market for more than 15 years and is widely recognized in many parts of the country. Rent Commencement: Aug-2012 Lease Expiration: Sep-2020 Gross Leasable Area: 1,870 SF Option Term: N/A Pro Rata Share of Project: 5.73% Headquartered: San Diego, CA No. of Locations: 3,349+ Website: www.cricketwireless.com NYSE: T Pizza Hut Pizza Hut was founded in June 1958 by two Wichita State University students, brothers Dan and Frank Carney, as a single location in Wichita, Kansas. Before closing in 2015, the oldest continuously operating Pizza Hut was in Manhattan, Kansas, in a shopping and tavern district known as Aggieville near Kansas State University. The first Pizza Hut restaurant east of the Mississippi was opened in Athens, Ohio in 1966 by Lawrence Berberick and Gary Meyers. Pizza Hut is an American restaurant chain and international franchise, known for its Italian- American cuisine menu including pizza and pasta, as well as side dishes and desserts. The company has over 15,000 locations worldwide as of 2015, and is a subsidiary of Yum! Brands, Inc., one of the world s largest restaurant companies. Rent Commencement: Nov-2011 Lease Expiration: Oct-2021 Gross Leasable Area: 1,256 SF Option Term: (1) 5-Year Pro Rata Share of Project: 3.85% Headquartered: Plano, TX No. of Locations: 15,000+ worldwide Website: www.pizzahut.com NYSE: YUM 28

overview

Demographic Summary Population 1-Mile 3-Miles 5-Miles 2010 Population 21,817 143,305 337,053 2014 Population 21,518 141,431 332,408 2019 Population 21,105 136,944 321,970 Households 1-Mile 3-Miles 5-Miles 2010 Households 9,092 60,255 142,133 2014 Households 8,984 59,555 140,425 2019 Households 8,853 58,211 137,206 2014 Average HH Size 2.40 2.33 2.30 2014 Daytime Population 3,857 37,045 156,819 2014 Owner Occupied Housing Units 63.65% 57.08% 54.55% 2014 Renter Occupied Housing Units 36.35% 42.92% 45.45% 2014 Vacant 15.32% 16.81% 17.34% 2019 Owner Occupied Housing Units 63.67% 57.07% 54.51% 2019 Renter Occupied Housing Units 36.33% 42.93% 45.49% 2019 Vacant 16.46% 17.93% 18.31% Income 1-Mile 3-Miles 5-Miles $ 0 - $ 14,999 16.6% 20.3% 22.9% $ 15,000 - $24,999 11.9% 14.3% 14.3% $ 25,000 - $34,999 12.0% 12.1% 12.0% $ 35,000 - $49,999 13.0% 13.6% 13.9% $ 50,000 - $74,999 15.6% 14.4% 14.7% $ 75,000 - $99,999 10.0% 8.4% 8.5% $100,000 - $124,999 7.2% 5.7% 5.2% $125,000 - $149,999 4.8% 3.3% 2.7% $150,000 - $200,000 3.6% 3.1% 2.4% $200,000 to $249,999 2.1% 1.7% 1.3% $250,000 + 3.3% 3.0% 2.1% 2014 Median HH Income $45,412 $38,083 $35,700 2014 Per Capita Income $31,003 $28,208 $25,031 2014 Average HH Income $74,176 $66,237 $58,363 30

Demographic Summary Geography: 5 Miles Population In 2014, the population in your selected geography is 332,407. It is estimated that the population in your area will be 321,970 five years from now. The current population is 46.01% male and 53.98% female. The median age of the population in your area is 38.6, compare this to the Entire US average which is 37.3. The population density in your area is 4,224.62 people per square mile. Households There are currently 140,425 households in your selected geography. It is estimated that the number of households in your area will be 137,206 five years from now. The average household size in your area is 2.30 persons. Income In 2014, the median household income for your selected geography is $35,700, compare this to the Entire US average which is currently $51,972. The median household income for your area has changed by 4.44% since 2000. It is estimated that the median household income in your area will be $41,972 five years from now, which represents a change of 17.56% from the current year. The current year per capita income in your area is $25,031, compare this to the Entire US average, which is $28,599. The current year average household income in your area is $58,362, compare this to the Entire US average which is $74,533. 0.18% Native American and 5.02% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 2.06% of the current year population in your selected area. Compare this to the Entire US average of 17.13%. Housing In 2000, there were 93,187 owner occupied housing units in your area and there were 67,724 renter occupied housing units in your area. The median rent at the time was $452. Employment In 2014, there are 156,818 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 62.62% of employees are employed in white-collar occupations in this geography, and 37.31% are employed in blue-collar occupations. In 2014, unemployment in this area is 8.32%. In 2000, the average time traveled to work was 25.9 minutes. Race and Ethnicity The current year racial makeup of your selected area is as follows: 34.25% White, 60.32% Black, 0.01% Native American and 2.43% Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, Demographic data 2012 by Experian/Applied Geographic Solutions. 31

Location Overview Shaker Heights is a city in Cuyahoga County, Ohio, United States. Shaker Heights is an inner-ring streetcar suburb of Cleveland, abutting the eastern edge of the city s limits. Shaker Heights was a planned community developed by the Van Sweringen brothers, railroad moguls who envisioned the community as a suburban retreat from the industrial inner city of Cleveland. Eighty-percent of the City of Shaker Heights is located within a National Register of Historic Places historic district. Among the first cities in the Midwest to adopt legislation supporting Green Building and Sustainable Community Practices, Shaker Heights supports fair housing and offers a variety of housing types for all ages and life stages. Shaker Heights also offers A diverse population of 28,448 a mix of newcomers from across the globe and long-time residents alike. There are nine distinctive neighborhoods characterized by tree-lined streets, ample sidewalks and extraordinary architecture. Shaker Heights has a nationally acclaimed school district. More than 80% of the faculty hold a master s degree or higher. Shaker Heights was the first school district in Greater Cleveland to adopt the highly regarded International Baccalaureate program at all levels. They are on track to become one of only seven International Baccalaureate districts in the country. They have the highest SAT scores in Cuyahoga County and the 2nd highest in the state. Shaker Heights schooldistrict is in the top 2% of US high schools in Newsweek s annual rankings. Shaker residents have easy access to the resources of a vibrant Cleveland. All neighborhoods are located within walking distance of one of Shaker s two Rapid transit line connecting to downtown and Cleveland Hopkins International Airport. Shaker is Cleveland s only eastern suburb with this amenity. The opportunities to buy local or own and run a business in Shaker have never been more exciting. The Van Aken District (under construction): Located in the heart of the City, near the intersection of Chagrin Blvd. and Warrensville Center Rd., this transit oriented development will be anchored by the blue line Rapid and will be easily reached on foot or by bike from many Shaker neighborhoods. It will include up to 120,000 square feet of office space, 200 housing units, and 160,000 square feet of retail and green, community gathering space. Fairmount Circle: A mix of restaurants and retail near the John Carroll University campus. Chagrin and Lee: Home to the City s civic center, retail, restaurants and The Dealership a shared office entrepreneurial hub at 3558 Lee Rd. Larchmere: A blend of antique and art shops and unique restaurants with patio garden seating. Location Highlights Diverse population of 28,448 a mix of newcomers from across the globe and longtime residents alike All Shaker neighborhoods are located within walking distance of one of Shaker s two Rapid transit line connecting to downtown and Cleveland Hopkins International Airport. Shaker Heights schooldistrict is in the top 2% of US high schools in Newsweek s annual rankings All neighborhoods are located within walking distance of one of Shaker s two Rapid transit line connecting to downtown and Cleveland Hopkins International Airport Shaker Heights is one of Greater Cleveland s older inner-ring or first suburbs, and borders Cleveland, Cleveland Heights, University Heights, Beachwood, Highland Hills, and Warrensville Heights. Shaker Heights is a member of the Northeast Ohio First Suburbs Consortium Shaker was among the first cities in the Midwest to adopt legislation supporting Green Building and Sustainable Community Practices, Shaker Heights supports fair housing and offers a variety of housing types for all ages and life stages 32

Location Overview Cleveland is a city in the U.S. state of Ohio and the county seat of Cuyahoga County, the most populous county in the state. The city is located in northeastern Ohio on the southern shore of Lake Erie, approximately 60 miles west of the Pennsylvania border. It was founded in 1796 near the mouth of the Cuyahoga River, and became a manufacturing center owing to its location on the lake shore, as well as being connected to numerous canals and railroad lines. Cleveland s economy has diversified sectors that include manufacturing, financial services, healthcare, and biomedical. Cleveland is home to the Rock and Roll Hall of Fame and the Cleveland Clinic. As of the 2013 Census Estimate, the Greater Cleveland, the Cleveland-Elyria- Mentor, OH Metropolitan Statistical Area, ranked 29th largest in the United States, and second largest in Ohio after Cincinnati with 2,064,725 people in 2013. Cleveland is part of the larger Cleveland-Akron-Canton, OH Combined Statistical Area, which in 2013 had a population of 3,501,538, and ranked as the country s 15th largest CSA. The vibrant lakeside city of Cleveland is filled with world-class arts, a widevariety of hotel offerings, hip eateries and bars, cool concert clubs and top-notch attractions like the Rock and Roll Hall of Fame and Museum, Cleveland Museum of Art and the PlayhouseSquare Theater District. A wave of tourism-related development is bringing a new convention center, Horseshoe Cleveland Casino, Greater Cleveland Aquarium and multiple new hotels and restaurants. Location Highlights Excellent Infrastructure - Cleveland s transportation facilities strengthens it s position as a leading center of business. Manufacturing jobs comprise just 12% of the total employment base, compared with 22% in 1990. Cleveland s downtown is experiencing metropolitan rebirth, as revitalized buidlings attract new businesses, residents and visitors. Cleveland s 20th century heritage as a major manufacturing center has given the city a legacy of world-class arts and cultural institutions. The cost of living in Cleveland is 2.2% less than the Ohio average. The cost of living in Cleveland is 11.3% less than the national average. 33

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