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EXCLUSIVE OFFERING

APPLEBEE’S - WALMART SUPERCENTER OUTPARCELWA R R E N , M I C H I G A N

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This Offering Memorandum has been prepared by The Shopping Center Group LLC (“TSCG”) for use by a limited number of parties to evaluate the potential acquisition of Applebee’s, Walmart Supercenter Outparcel, Warren, Michigan (the “Property”). All projections have been developed by TSCG, Owner and designated sources, are based upon assumptions relating to the general economy, competition, and other factors beyond the control of TSCG and Owner, and therefore are subject to variation. No representation is made by TSCG or Owner as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied on as a promise or representation as to the future performance of the Property. Although the information contained herein has been obtained from sources deemed to be reliable and believed to be correct, TSCG, Owner and its employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, TSCG, Owner and its employees disclaim any and all liability for representations and warranties, expressed and implied, contained in, or for omissions from, the Offering Memorandum or any other written or oral communication transmitted or made available to the recipient.

The Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of the Property or Owner since the date of preparation of the Offering Memorandum. Analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the prospective purchaser.

DISCLAIMERAdditional information and an opportunity to inspect the property will be made available to interested and qualified prospective investors upon written request. Owner and TSCG each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the property and/or terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligations to any entity reviewing this Offering Memorandum or making an offer to purchase the property unless and until such offer is approved by Owner, a written agreement for the purchase of the property has been fully executed, delivered and approved by Owner and its legal counsel, and any obligations set by Owner thereunder have been satisfied or waived.

This Offering Memorandum and the contents, except such information which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting this Offering Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not photocopy or duplicate it, that you will not disclose this Offering Memorandum or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior written authorization of Owner or TSCG and that you will use the information in this Offering Memorandum for the sole purpose of evaluating your interest in the property and you will not use the Offering Memorandum or any of the contents in any fashion or manner detrimental to the interest of Owner or TSCG. If you have no interest in the property, please return the Offering Memorandum to TSCG.

Atlanta Office300 Galleria PkwyAtlanta, GA 30339

770.955.2434

Exclusive Listing

Presented By:

Mark D. CooleyDirector of Investment [email protected]

T. Neal Pringle, Jr. CCIMDirector of Investment Sales & Finance

[email protected]

Daniel EarlesDirector of Investment [email protected]

EXECUTIVE SUMMARY5 In t roduct ion5 Inves tment Highl ights

PROPERTY OVERVIEW6 Projec t His tor y6 Si te P lan7 Si te Descr ip t ion7 Improvement Features8 Retai l Aer ia l10 Tenant Prof i le11 Lease Terms

MARKET OVERVIEW12 Trade Area Dynamics13 Demographic Over v iew

TABLE OF CONTENTS

5

E X E C U T I V E S U M M A R Y

APPLEBEE’S – WARREN, MICHIGAN

The Shopping Center Group (“TSCG”) has been retained on an exclusive basis to offer for sale a 100% interest in a single tenant Applebee’s (the “Property”), a 5,500 square foot casual dining restaurant located along Twelve Mile Road in Warren, Michigan. Situated with excellent visibility and multiple access points in the midst of a densely populated area, the Applebee’s was built in 1996 and renovated in 2014, and is strategically located to provide convenient access to a large number of residents and nearby employees.

The Property is an outparcel of a brand new, 185,000 square footWalmart, which opened in March 2014. The prime site provides direct access to Highway 53, a major north–south route that connects several suburbs in eastern Michigan.

Applebee’s is ideally located within a heavily populated, residential area with over 106,000 residents within a three mile radius. There are several major employers located nearby including General Motors, U.S. Manufacturing, Johnson Controls and more. With the recent opening of Walmart, several additional retailers are expected to open in the vicinity within the coming months.

Applebee’s is the world’s largest casual dining brand with more than 2,000 restaurants in 49 states and 16 countries. The company has increased focus on becoming more competitive and differentiated in the casual dining industry with expectations of maintaining their position at the top.

Located along a major corridor with over 49,000 vehicles per day,this well–situated, newly remodeled restaurant is positioned for sustained sales growth due to its excellent location both in front of abrand new Walmart and convenient to major employers.

INTRODUCTION

INVESTMENT HIGHLIGHTS

SUMMARY OF SALIENT FACTS

Address8025 Twelve Mile Road

Warren, Macomb County,Michigan 48093

Price $1,600,000

Cap Rate 4.68%

NOI $74,939

Ownership Fee Simple

Year Built 1996

Renovation 2014

Occupancy 100%

Total GLA 5,500 SF

Land Area ± 0.968 Acres

Lease Structure NNN Ground Lease

Parking ±69 spaces (12.55 per 1,000 SF)

• 100% leased, largest casual dining restaurant in U.S.• Over 16 years left on lease; four 5 year options• 10% rent increases every 5 years• Outparcel to brand new Walmart (opened in March 2014)• Newly remodeled in 2014• 3–Mile Population: 106,164• 3–Mile Average Household Income: $57,278• Traffic Count: 49,400 AADT (Van Dyke Avenue)

P R O P E R T Y O V E R V I E W

6APPLEBEE’S – WARREN, MICHIGAN

PROJECT HISTORY SITE PLANThe Applebee’s is a 5,500 square foot casual dining restaurant located along Twelve Mile Road a mile north of Interstate 696 in Warren, Michigan.

The Property was built and initially occupied in 1996 by Applebee’s and recently renovated in 2014.

VAN DYKE AVENUE

EAST

TW

ELVE

MILE

RO

AD



SITE DESCRIPTION IMPROVEMENT FEATURESLocationThe Property is located on the northern side of Twelve Mile Road near the intersection of Van Dyke Avenue in Warren, Macomb County, Michigan.

Visibility and SignageThe Applebee’s restaurant has excellent visibility and a prominent pylon sign on Twelve Mile Road with planned signage on the Walmart pylon sign.

FrontageThe Property has approximately 280 feet of frontage along Twelve Mile Road.

AccessApplebee’s features multiple points of ingress and egress along both Twelve Mile Road and Van Dyke Avenue. Van Dyke Avenue provides access to Interstate 696 via an interchange approximately 1 mile south of the Property.

Utilities and ServicesAll basic utilities are available including electricity, water and sewer, telephone, and gas.

Parking LotThe Applebee’s contains asphalt paved parking for 69 cars at a ratio of 12.55 per 1,000 square feet.

LandscapingThe entranceway, perimeter and concrete islands throughout the parking area are attractively landscaped with flowering shrubs and trees.

SizeThe property contains 5,500 square feet of gross leasable area (GLA).

Building DimensionsThe building is approximately 100 feet wide and 55 feet deep.

Exterior FinishesThe building features a brick façade with decorative canopies over pedestrian entrances and windows.

WindowsThree sides of the building have full sized, aluminum frame glass windows.



RETAIL AERIAL



TENANT PROFILES

www.applebees.com

DineEquity: (NYSE: DIN)

Franchisee: TSFR Apple Venture LLC

With more than 2,000 restaurants in 49 states, 16 countries and one U.S. territory, Applebee’s is the world’s largest casual dining brand. Founded in 1980 in Atlanta, Georgia by Bill and T.J. Palmer, Applebee’s has always been dedicated to full service, consistently good food, reasonable prices and quality service in a neighborhood setting. Today, the company is focused on building upon this heritage and maintaining Applebee’s brand position at the top of the casual dining industry by becoming more competitive and differentiated in the casual dining segment of the restaurant industry.

Formerly known as IHOP, DineEquity purchased Applebee’s in 2007 and made a new commitment to brand revitalization and franchising. By October 2012, DineEquity successfully completed the transition of Applebee’s to a 99% franchised restaurant system. With more than 3,600 restaurants combined in 17 countries, over 400 franchisees and approximately 200,000 team members, DineEquity is one of the largest fullservice restaurant companies in the world.

TSFR Apple Venture LLC is part of a family of Michigan–based restaurant companies started in 1981 by the Schostak Family, which owns, operate or has an investment in more than 160 restaurants including fast food, family dining and casual dining and employs more than 4,000 people throughout Michigan. The business is led by Mark Schostak and professional managers Bill Angott and Mike Devlin, all Michigan natives and veterans in the restaurant industry. As part of its operating group, TSFR Apple Venture LLC has an experienced and stable senior management team.



LEASE TERMSLease TermThe current lease expires September 20, 2032

Rent08/01/2016 – 07/31/2021: $74,93908/01/2021 – 07/31/2026: $82,43308/01/2026 – 09/20/2032: $90,676

OptionsFour, 5 year options:

• 09/31/2032 – 09/20/2037: $99,744

• 09/21/2037 – 09/20/2042: $109,718

• 09/21/2042 – 09/20/2047: $120,690

• 09/21/2047 – 09/20/2052: $132,759

Repairs & MaintenanceTenant’s Responsibility

UtilitiesTenant’s Responsibility

TaxesTenant’s Responsibility

InsuranceTenant’s Responsibility

RoofTenant’s Responsibility

Assignment & SublettingTenant shall have no right to assign or sublet the Demised Premises without the written consent of Landlord, which consent shall not be unreasonably withheld.

M A R K E T O V E R V I E W


TRADE AREA DYNAMICSApplebee’s is located within Macomb County in the city of Warren. The trade area has seen its population remain stable over the past decade and projections show slight growth over the next five years. The estimated population within 3 miles of the Property is 106,164, while the average household income is $57,278.

Applebee’s is a 5,500 square foot casual dining restaurant located in a heavily populated residential and industrial district, approximately 1 mile north of Interstate 696 in Warren, Michigan.

The Property caters to both local residents and workers, due to its ideal location bordering both residential neighborhoods and major regional employers, including General Motors, U.S. Manufacturing, Johnson Controls and more. The Property is an outparcel to a brand new 185,000 square foot Walmart, which opened in March 2014. The current investments of General Motor’s new data center and other renovations within the area have caused a ripple effect, inviting more retailers, hotels, housing, etc.

Tech Plaza, which is adjacent to the Walmart Supercenter, is expected to open in the near future with over 130,000 SF of retail space. This heavy concentration of customers will provide stable, long–term business for Applebee’s.

Located across the street from Applebee’s is The General Motors’ Technical Center, which is home to over 16,000 GM engineers, designers, and technicians and has been the center of the company’s engineering effort since its inauguration in 1956.

They continue to improve and expand their facilities, coupled by the creation of an estimation of 2,600 jobs with the estimated completion date of 2018.

The facility is the first of two Information Technology Operations andCommand centers that bring in–house GM’s global IT infrastructure and consolidate a network of multiple sites. The two centers will integrate and streamline all aspects of product development, manufacturing, marketing, sales and OnStar applications to speed access to any GM employee anywhere in the world.

GM recently reported 2016, First Quarter Net Income of $2.0 Billion, which marks the continuing profits for the automaker.

The United States Army TACOM (Tank–automotive and Armaments Command) is located less than 1 mile from Applebee’s. The militaryand civilian employees at this facility find and implement technology and logistics solutions from tank–automotive and armaments weapons systems research and development, through procurement and fielding, to sustainment and retirement to support America’s armed forces.

M A R K E T O V E R V I E W


DEMOGRAPHIC OVERVIEW

Exclusive Listing Presented By The Shopping Center Group

Mark CooleyDirector of Investment SalesP770.955.2434

[email protected]

Neal Pringle, CCIMDirector of Investment Sales & FinanceP770.955.2434

[email protected]

Daniel EarlesDirector of Investment SalesP813.961.1812

[email protected]

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