Transcript
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P R E S E N T E D B Y

OFFERING MEMORANDUM

ADVIA CREDIT UNION27100 Woodward Avenue • Royal Oak, MI 48067

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N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Non-EndorsementsMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in thismarketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with,or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent,product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenantlessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

DisclaimerTHIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BECONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but wemake no representations or warranties, express or implied, as to the accuracy of the information. References to squarefootage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. Allrights reserved.

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N E T L E A S E D D I S C L A I M E R

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will notverify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warrantyor representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information beforecompleting any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus &Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance ofthis property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine toyour satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legaland financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not aguarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on atenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantorsmay fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due tomarket, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her owninvestigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenantif the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenantconsidering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost,expense, or liability arising out of your investigation and/or purchase of this net leased property.

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TABLE OF CONTENTS

FINANCIAL ANALYSIS 01

INVESTMENT OVERVIEW 02Location Overview

Regional and Local Map

Aerial Photo

SALES COMPARABLES 03

MARKET OVERVIEW 04Market Analysis

Demographic Analysis

ADVIA CREDIT UNION

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ADVIA CREDIT UNION

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FINANCIAL

ANALYSIS

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CAP Rate Price Price/SF InitialCash-on-Cash

LEASE SUMMARY8.00% $1,750,000 $437.50 10.70%

7.78% $1,800,000 $450.00 9.96%

7.57% $1,850,000 $462.50 9.26% Tenant: advia credit union

7.37% $1,900,000 $475.00 8.60% Guarantor: Corporate Guarantee

7.18% $1,950,000 $487.50 7.97% Credit Rating: 0 Years

Rent Commencement: 2/28/2018

Operating Information Initial Lease Term 5 Years

NOI as of 2020 $140,000

Options:

5 Year OptionRent/SF $35.00

Gross Leasable Area 4,000 SF

Financing Lease Type: NNN

New Acquisition Financing $1,295,000

Loan To Value 70.00% $35.00/SF$2.92/SF/Month$140,000 Annual Rent

Interest Rate 4.75% Base Rent:Amortization Period 25

Loan Constant 6.84%

Annual Debt Service Payment $88,596Rent Increases: 2.00%

Year 1 Debt Service Coverage 1.58

Year 1 Debt Yield 10.81%

Year 1 Net Cash Flow After Debt Service $51,404

27100 Woodward Avenue, Royal Oak, MI 48067PRICING AND VALUATION MATRIX

NOTES: INTEREST RATE IS TIME SENSITIVE AND SUBJECT TO CHANGE. CONTACT YOUR LOCAL MARCUS & MILLICHAP CAPITAL CORPORATION REPRESENTATIVE.

PROPERTY NAMEADVIA CREDIT UNION

PRICING AND VALUATION MATRIX

PROPERTY NAMEADVIA CREDIT UNION

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PRICING AND VALUATION MATRIXPRICING AND VALUATION MATRIX

PROPERTY NAMEADVIA CREDIT UNION

PRICING AND VALUATION MATRIX

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PRICING AND VALUATION MATRIX

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7.57%               $1,850,000                   $462.50 9.26%

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PROPERTY SUMMARYOFFERING SUMMARY

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NOTES

ADVIA CREDIT UNION

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OFFERING SUMMARY

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ADVIA CREDIT UNION

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INVESTMENT

OVERVIEW

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TENANT PROFILES

ADVIA CREDIT UNION

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Advia Credit Union

Advia Credit Union was established in 1935 and currently has assets of $1.37 billion, 27 branch

locations, 360 employees. Operating in Michigan, Illinois and Wisconsin with over 130,000

members, Advia is financially strong, positioned within the top 10 credit unions in Michigan, and

within the top 3 percent of credit unions in the United States. Total assets increased by over

$163 million in 2016, which equates to nearly 13.80 percent annual growth.

Headquartered in Parchment, Michigan, their full-service branch locations and surcharge-free

ATM locations keep growing. Advia offers easy-access financial solutions to anyone living,

working or attending school within the southern peninsula of Michigan; as well as, a growing

number of counties in Wisconsin and Illinois. The credit union is chartered by the state of

Michigan and deposits are federally insured up to $250,000 per depositor by the National Credit

Union Administration. General Information

Tenant Name Advia Credit Union

Website www.adviacu.org

Headquartered Parchment, Michigan

Rentable Square Feet 4,000 SF

Percentage of RBA 100.00%

Lease Commencement 1/31/2018

Lease Expiration 1/31/2023

No. of Locations 27+

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TENANT PROFILES

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Core Values• Act with Integrity• Drive Progress• Keep People at the Core• Build & Strengthen Relationships

Service Promises• I promise to do what is right.• I promise to be your advocate for innovative solutions.• I promise to provide you with knowledge and resources to help 

you be successful.• I promise to treat you with professionalism and respect.

MissionTo provide financial advantages to its members.

Highlights • Established in 1935 • $1.37 Billion in Assets• 27 Branch Locations• Operating in Michigan, Illinois and Wisconsin with

over 130,000 members• Total Assets Increased by over $163 Million in 2016• Nearly 13.80 Percent Annual Growth

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TENANT PROFILES

ADVIA CREDIT UNION

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Advia Locations

Southwest Michigan4308 West Main St, Kalamazoo, MI 490065039 Comstock Ave, Kalamazoo, MI 49048825 M‐89 Plainwell, MI 49080901 East Milham Rd., Portage, MI 490028224 N. 32nd St. Richland, MI 490836869 West Q Ave., Kalamazoo, MI 49009706 N. Westnedge, Kalamazoo, MI 4900724032 Red Arrow Hwy., Mattawan, MI 49071550 S. Riverview Dr., Parchment, MI 490042550 Capital Ave. SW, Battle Creek, MI 49015320 Columbia Ave., Battle Creek, MI  4901574 N. Washington, Battle Creek, MI 49037

Eastern Michigan 3002 N. River Rd., Fort Gratiot, MI 48059500 10th St., Port Huron, MI 480601919 Gratiot Blvd., Marysville, MI 4804035600 Main St., New Baltimore, MI 4804714170 Pennsylvania Rd., Southgate, MI 4819520401 Gibraltar Rd., Brownstown, MI 48183

Wisconsin & Illinois1982 Cranston Rd., Beloit, WI 53511746 4th St., Beloit, WI 535112317 Milton Ave., Janesville, WI 53545769 N. Blackhawk Blvd., Rockton, IL 61072111 Elkhorn Rd., Williams Bay, WI 5319121075 Swenson Dr., Suite 100, Waukesha, WI 53186837 North Wisconsin, Elkhorn< WI 53121W5109 Hwy A, Elkhorn, WI 5312129430 Silver Lake Rd, Salem, WI 531682657 Browns Lake Drive, Burlington, WI 53105

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ADVIA CREDIT UNION

UP-AND-COMING

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In The Area….

Currently under construction, this $20 million, 74,000-square foot office building is situated at the corner of 11 Mile and Center Street.

A proposed public-private partnership between Royal Oak and Central Park Development Group, The Royal Oak Civic Center consists of five projects within the current city hall site. A new six-story office building, 30,000 standalone city hall, 581 space parking garage police station and downtown park.

The former Northwood Shopping Center at the southwest corner of Woodward Avenue and 13 Mile Road is being demolished to make way for this new $32.8 million development on the 15-acre property. A campus comprised of five main buildings will offer a grocery store, a 70,000-square foot five-story hotel, restaurants and 110,000 square feet of retail space. The 183,000-square foot complex will feature green space, landscape gardens and an assemblage area to host festivals and fairs.

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ADVIA CREDIT UNION

UP-AND-COMING

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Located at 400 North Main, formerly the home of a used-car dealership, a five story, 122-room Hyatt Place hotel is currently under construction in downtown Royal Oak.

Demolition is complete and construction is underway on this mixed-use, two-story building developed by Royal Oak-based Kinetic Creations as its new headquarters on Fourth Street. Construction is set to be complete in Summer 2018.

A proposed $40 million residential development, comprised of a four-story apartment building and 10,000 square feet of retail space, is in the process of finalizing a development agreement with the site's owner, the Downtown Development Authority.

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CLOSE PROXIMITY TO:

New Five-Year NNN with a Five-Year Option Newly Renovated Building 2 Percent Annual Rent Increases Easy Access to Various Interstates High Visibility off of Woodward Avenue Nearby Amenities Include Restaurants,

Retail, Activities and More

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

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PRICING AND VALUATION MATRIX

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OVERVIEW

Marcus & Millichap is pleased to present 27100 Woodward Avenue in Royal Oak, Michigan. The subject is a 5,500‐square foot building occupied by a single‐tenant; Advia Credit Union.  This provides an investor the opportunity to acquire a newly renovated building with approximately $400,000 invested in improvements and build out, including additional parking and a drive‐through.  In addition, there is a new five‐year NNN lease with 2 percent rental escalations and a five‐year option.

The tenant; Advia Credit Union was established in 1935 with assets of $1.37 billion, 27 branch locations and 360 employees.  Operating in Michigan, Illinois and Wisconsin with over 130,000 members.  Advia is headquartered in Parchment, Michigan and is  positioned within the top 10 credit unions in Michigan, and within the top 3 percent of credit unions in the United States.  Total assets increased by over $163 million in 2016, which equates to nearly 13.80 percent annual growth.  The property is located off of Woodward Avenue in Royal Oak.  Woodward Avenue is a north‐south state trunk line highway and is also referred to as M‐1 and Detroit’s Main Street.  The roadway runs from Detroit to Pontiac and is one of the five principal avenues in Detroit.  With traffic counts of over 64,000 cars per day,  this is an amazing location and provides extremely high visibility.  The location also provides easy access to various interstates, making travel easy.  

Royal Oak is a city in Oakland County.  It is a suburb of Detroit and is the eighth‐largest municipality in Oakland County and the 27th largest in Michigan. Conveniently located near several major thoroughfares, Royal Oak’s location isprime. This is evident in the steady rise of property values throughout the city. Royal Oak has maintained the appeal of a small town, while affording many of the amenities of a large metropolis. Because of its respect for diversity, the city's composition is truly eclectic.  

The population represents a diverse mix of individuals, age groups, incomes, and myriad of residential home styles. Combined efforts of a proactive city government and Downtown Development Authority over the past several years have brought about a metamorphosis of the city's central business district.  Downtown businesses have created  a diverse, one‐stop  commercial district where customers find quality and personal  service.  The area provides a plethora of activities, restaurants, outside venues and so much more! 

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CLOSE PROXIMITY TO:

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAMEADVIA CREDIT UNION

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OVERVIEW

New Building‐Under Construction

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CLOSE PROXIMITY TO:

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

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PRICING AND VALUATION MATRIX

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OVERVIEW

Approximately 22 Parking Spaces 

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27100 Woodward Avenue, Royal Oak, MI 48067LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAMEADVIA CREDIT UNION

PRICING AND VALUATION MATRIX

PROPERTY NAMEADVIA CREDIT UNION

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REGIONAL AND LOCAL MAP

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AERIAL PHOTO

ADVIA CREDIT UNION

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ADVIA CREDIT UNION

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SALES

COMPARABLES

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PROPERTY NAMEADVIA CREDIT UNION

SALES COMPARABLES

Avg. $431.18

$0.00

$60.00

$120.00

$180.00

$240.00

$300.00

$360.00

$420.00

$480.00

$540.00

$600.00

AdviaCreditUnion

CharterOne Bank

CitizensBank

CitizensBank-2

FirstPlace Bank

HuntingtonBank

Average Price Per Square Foot

SALES COMPARABLES SALES COMPS AVG

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MARKETING TEAM

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SALES COMPARABLES

SUBJECT PROPERTY

Asking Price $1,850,000

Price/SF $462.50

CAP Rate 7.57%

GLA 4,000 SF

Lot Size 0.33 acre(s)

Year Built 2017

Lease Term Remaining 5 Years

ADVIA CREDIT UNION27100 Woodward Avenue, Royal Oak, MI, 48067

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Close Of Escrow 9/6/2017

Sales Price $2,400,000

Price/SF $399.14

CAP Rate 5.69%

GLA 6,013 SF

Lot Size .68 acre(s)

Year Built 1985

Lease Term Remaining 5 Years

CHARTER ONE BANK44 North Adams Road, Rochester Hills, MI, 48309

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Close Of Escrow 12/8/2016

Sales Price $1,192,308

Price/SF $283.88

CAP Rate 6.50%

GLA 4,200 SF

Year Built 1965

CITIZENS BANK23011 Woodward Avenue, Ferndale, MI, 48220

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MARKETING TEAM

ADVIA CREDIT UNION

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SALES COMPARABLES

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Close Of Escrow 3/1/2017

Sales Price $2,430,000

Price/SF $441.74

CAP Rate 6.48%

GLA 5,501 SF

Lot Size 0.36 acre(s)

Year Built 1962

CITIZENS BANK2500 West Maple Road, Bloomfield Village, MI, 48301

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Close Of Escrow 6/23/2017

Sales Price $4,500,000

Price/SF $444.66

GLA 10,120 SF

Lot Size 0.28 acre(s)

Year Built 1968

FIRST PLACE BANK479 South Old Woodward Avenue, Birmingham, MI, 48009

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Close Of Escrow 12/21/2017

Sales Price $1,675,000

Price/SF $586.48

GLA 2,856 SF

Lot Size 0.49 acre(s)

Year Built 1983

HUNTINGTON BANK26336 West 12 Mile Road, Southfield, MI, 48034

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MARKET

OVERVIEW

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NATIONAL NET-LEASED RETAIL REPORTFALL 2017

Economic momentum remains in place as tight labor markets contribute to steady growth. Driven byconsistent job gains and the lowest unemployment rate since the early 2000s, retail sales remain on anupward trajectory. The steady recovery in the labor market has been dominated by advancement inoffice-using sectors, which combined for more than 734,000 new jobs over the last year, representing thestrongest overall sector in the economy. As a result, household formation expanded meaningfully,creating demand for a broad array of retail products, particularly in the durable goods sector. Themomentum has also spilled over into building supplies retailers as the new households remodel existingsingle-family homes amid a shortage of new construction. Looking forward to the remainder of 2017,extremely low unemployment will begin to feed into greater gains in average hourly earnings, which rose2.5 percent in August. Increases in spending power will likely be deployed as the savings rate has shrunkover the past few years, reflecting growing confidence among consumers.

Job growth remains steady, with gains averaging 174,000 positions per month over the past year. Asa result, the unemployment rate fell to 4.4 percent, the lowest level since 2001.

The formation of nearly 1.5 million households this year will drive demand in a number of retailcategories, particularly durable goods such as furniture and building materials.

Core retail sales advanced 3.3 percent year over year in July, highlighting the strength of consumers.Lead growth categories include e-commerce, building materials and garden supplies, and furnitureand home furnishings.

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Job Growth, Household Formation Powering Retail;Investors Remain Active Amid Stable Rate Environment

ADVIA CREDIT UNION

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NATIONAL NET-LEASED RETAIL REPORTFALL 2017

Stabilization of interest rates supporting net-lease market; concern for 1031-exchange revisions remainunanswered. Following the sharp move in interest rates last year, the tight range of long-term interestrates in 2017 has provided a more normalized transaction environment. Spurred by the limited use ofleverage in the asset class, buyers have remained focused on properties in quality locations backed bystrong nationally accredited tenants. Looking ahead, legislative changes from Capitol Hill remain in flux,although further clarity on regulatory and tax code changes could spark greater urgency among investorsto transact before or after the changes are implemented. The most acute issue under discussion is thestatus of the section 1031 tax-deferred exchange. Driven by investor’s desire to shift their portfoliostowards less management intensive assets, 1031-exchange volumes make up a considerable portion ofthe net-lease marketplace. In 2017, exchange-related buyers encompassing more than 40 percent oftransaction volumes. As a result, the status of this tax provision moving forward will remain a major driverof deal flow and investment demand.

Average asking rents have risen 4.3 percent over the past year, reaching $20.21 per square footnationwide at the end of the second quarter. Average prices per square foot have now exceeded theprevious high set in the first quarter of 2008.

Net-leased development remains the key driver of overall retail construction, accounting for more than46 million square feet of the 60.4 million square feet delivered over the past year. Single-tenantconstruction has averaged 45 million square feet over the past three years.

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ADVIA CREDIT UNION

* Through 2Q2017

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NATIONAL NET-LEASED RETAIL REPORTFALL 2017

Uncertainty remains around future of 1031 exchange in potential tax changes; muted effects on pricingand deal flow. Amid rumors and speculation about potential changes to tax and regulatory policy out ofCongress, investors and developers alike are contemplating the future of the 1031 exchange. Amid theextensive use of this provision in net-leased deals, the potential elimination of this statute could have asubstantial impact on deal flow as investors adjust to the new tax code. While the speculation has been aconstant source of discussion among investors, the issue has had little effect on pricing, with infill assetswith top-tier tenants pricing from the low-4 percent band.

The potential for tax code changes, coupled with increasing competition among net-leased concepts,is generating a longer, more intensive due diligence period as investors exercise more caution.

Initial plans have called for a lowering of the corporate tax rate while simultaneously trimmingindividual tax rates. The deductions in revenue would be slightly offset by eliminating deductions,although details and concrete plans remain in flux.

Upward pressure remains on interest rates amid policy normalization from the Federal Reserve. TheFederal Reserve recently announced the first steps toward normalizing its balance sheet, whichexpanded to more than $4.4 trillion in the wake of the financial crisis. Initial plans call for allowing $10billion in Treasurys and agency securities to roll off the balance sheet per month, increasing by $10 billionevery quarter to a maximum of $50 billion per month. As a result, upward pressure on interest rates islikely as the market adjusts to less liquidity.

The spread between the 10-Year Treasury and the average single-tenant cap rate is roughly 380basis points, resting between the widest point at 560 basis points reached in 2011 and the narrowestpoint at 215 basis points registered in 2006.

The Federal Reserve has also signaled additional rate hikes over the course of the next year, withone rate hike slated for 2017 and four increases in 2018.

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* Through August 2017** Through September 26, 2017

ADVIA CREDIT UNION

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NATIONAL NET-LEASED RETAIL REPORTFALL 2017

Developers focused on net-lease properties amid labor market strength and extremely lowunemployment. Throughout the current business cycle, builders have been constructing projects favoringsingle-tenant concepts, particularly in the quick-service restaurant, pharmacy and dollar-store segments.Broadly, net-leased deliveries have accounted for more than 80 percent of retail development since2009, up from below 70 percent before the recession. Despite the upswing of net-leased deliveries,demand for spaces remains well ahead of supply growth, with net absorption exceeding development byan average of more than 16 million square feet annually since 2010. As a result, vacancy has fallen 250basis points to 4.7 percent nationwide.

Retail sales remain constructive for net-leased development, with core retail sales rising 3.7 percentin August on a year-over-year basis. Growth was particularly strong in the furniture and buildingmaterials sectors, rising 5.4 percent and 7.5 percent, respectively.

Following months of discussions with regulators and numerous deal iterations, Walgreens has agreedto purchase 1,932 Rite Aid stores for $4.4 billion. The deal will leave Rite Aid operating roughly 2,600locations after the deal closes.

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ADVIA CREDIT UNION

*** Forecast

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Cap rates shown above are representative of deals that closed between 1Q2016 and 2Q2017. Actual yields will vary by location, tenant, lease terms and other considerations. Locations and credit ratings sourced from CreditNtellfor public companies and lcompany websites for private companies.

* For transactions closed in 2016Sources: CoStar Group, Inc.; CreditNtell; company sources

Brand Credit Rating Locations

Auto PartsBridgestone/Firestone A 1,600O'Reilly Auto Parts BBB+ 4,712AutoZone BBB 5,839Advance Auto Parts BBB- 5,185Pep Boys BB+ 804

Dollar StoresDollar General BBB 13,205Dollar Tree / Family Dollar BB+ 14,284

General RetailWal-Mart AA 11,593Sherwin-Williams A 4,180AT&T BBB+ 16,000Verizon Wireless BBB+ 2,330Mattress Firm B+ 3,482Office Depot/Max B- 1,441

PharmaciesCVS BBB+ 9,987Walgreens BBB 8,185Rite Aid B 4,547

Quick Service RestaurantsDairy Queen AA 4,800Starbucks A- 25,085Chipotle BBB+ 2,250McDonald's BBB+ 36,899Yum Brands BB 43,085Burger King B+ 20,351Wendy's B 6,503Carl's Jr./Hardee's B- 3,000

Fast CasualChili's BBB- 1,652Darden Restaurants BBB- 1,541Red Lobster BBB- 700Bloomin’ Brands BB 1,270Applebee's B 2,033Ruby Tuesday B- 546

NATIONAL SINGLE-TENANT OUTLOOK

ADVIA CREDIT UNION

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Capital Markets Recent Marcus & Millichap Transactions

NATIONAL NET-LEASED RETAIL REPORTFALL 2017

Monetary policy in transition. Despite the Fed raising its benchmark short-term ratethree times in seven months and signaling another rise before the end of the year,long-term rates have remained stable. The yield on the 10-year U.S. Treasury bondremained in the low- to mid-2 percent range throughout the second quarter of 2017.The Federal Reserve wants to normalize monetary policy and, in addition to ratehikes, will likely start paring its balance sheet.

Sound economy a balancing act for Fed. With unemployment hovering in the low-4percent range, the lowest level since 2007, the Federal Reserve will remain vigilantregarding a possible rapid increase in inflation if wage growth takes off. Additionally,business confidence and job openings are near all-time highs. Businesses finallyhave the assurance to expand their footprints after years of tepid growth followingthe Great Recession. The Fed, however, must now balance economic growth andjob creation against wage growth and inflationary pressures.

Underwriting discipline persists; ample debt capital remains. Overall, leverage onacquisition loans has continued to reflect disciplined underwriting, with LTVs typicallyranging from 60 percent to 70 percent for most retail properties. At the end of 2016,the combination of increasing rates, conservative lender underwriting and fiscalpolicy uncertainty encouraged some investor caution that slowed deal flow, a trendthat has extended into 2017. A potential easing of regulations on financialinstitutions, though, could liberate additional lending capacity and nominally higherinterest rates may also encourage additional lenders to participate.

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Property Name City, State Sales Price Price perSq. Ft. Cap Rate

LA Fitness Rock Hill, SC $9,559,375 $251.56 6.4%

CVS Belton, TX $7,337,000 $543.04 1.7%

Walgreens Clinton, CT $6,272,727 $459.54 5.5%

Tractor Supply Co. Royse City, TX $4,338,725 $197.84 6.2%

Outback Steakhouse Lubbock, TX $3,782,000 $611.68 5.1%

Bojangles Lumberton, NC $3,200,000 $845.00 6.2%

Dollar General Marco Island, FL $2,767,272 $369.51 5.5%

Chick-Fil-A Valrico, FL $2,275,000 $457.65 4.4%

O'Reilly Auto Parts Redding, CA $2,175,000 $362.50 5.2%

Starbucks Suwanee, GA $2,144,533 $1,115.78 5.3%

Family Dollar Elizabeth, NJ $2,083,333 $245.10 6.0%

Whataburger Fort Worth, TX $2,075,000 $579.12 4.5%

Burger King Castle Rock, CO $1,866,000 $77.89 5.3%

Sherwin Williams Chesapeake, VA $1,663,700 $415.93 5.7%

The Vitamin Shoppe Mansfield, OH $1,650,000 $403.42 9.9%

Circle K Phoenix, AZ $1,428,500 $475.22 6.0%

KFC Elizabeth, NJ $1,400,000 $700.00 5.4%

Applebee's Fort Worth, TX $1,250,000 $233.73 9.2%

7-Eleven Tampa, FL $1,236,000 $547.63 5.5%

Dollar General Hebron, IL $1,225,000 $134.62 7.0%

Pizza Hut Austin, TX $1,200,000 $619.20 2.9%

ADVIA CREDIT UNION

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MARKETING TEAM

Source: © 2015 Experian

PROPERTY NAME

#

CREATED ON DECEMBER 13, 2017

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAMEADVIA CREDIT UNION

PRICING AND VALUATION MATRIX

PROPERTY NAMEADVIA CREDIT UNION

30

DEMOGRAPHICS

1 Miles 3 Miles 5 MilesPOPULATION

2021 Projection 17,409 150,673 357,5962016 Estimate 17,341 151,033 360,4272010 Census 16,786 146,520 353,3432000 Census 16,738 157,463 384,638

INCOMEAverage $108,001 $80,229 $75,428Median $75,723 $60,555 $54,649Per Capita $51,442 $36,223 $32,852

HOUSEHOLDS2021 Projection 8,322 68,501 157,0882016 Estimate 8,243 68,063 156,5662010 Census 7,936 65,618 152,6022000 Census 7,909 68,538 161,417

HOUSING2016 $231,248 $148,600 $133,040

EMPLOYMENT2016 Daytime Population 15,894 130,462 381,397

2016 Unemployment 4.22% 5.75% 7.12%2016 Median Time Traveled 23 25 25

RACE & ETHNICITYWhite 92.26% 74.16% 57.23%Native American 0.05% 0.05% 0.04%African American 3.04% 20.33% 35.21%Asian/Pacific Islander 2.20% 2.14% 4.04%


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