Dog Haus|4405 Route 36 East, Decatur, IL 62521

Offering Memorandum

$3,999,999 | Sale Leaseback Opportunity - Investment Details

Located near a Walmart Anchored Shopping Center New 2017 Construction (Redeveloped from a Ruby Tuesday site) 20 Year True NNN Lease to Commence Upon Certificate of

Occupancy (estimate open date 1stQ2018) Annual Escalations Staying Ahead of Inflation Affluent Neighborhood Where Household Income Exceeds $80,780 Less than One Mile from Decatur Airport Close Proximity to Shopping Center Containing Retail such as

McDonalds, Kroger, Subway, Walgreens, Arby’s, Steak and Shake, and more

20,000 Vehicles Passing in Front of Site Daily

File Photo

TENANT OVERVIEW

Tenant Trade Name – Dog Haus

Ownership – Private

Lease Guarantor – Personal & Franchise

No Of Locations – 25+/- (300 More Stores

Scheduled to be Opened Over Next Seven Years)

Headquarters – Pasadena, CA

Website – www.doghaus.com

For more information about Dog Haus,click here

Founded by partners Hagop Giragossian, Quasim Riaz and Andre Vener, three friends who sharea passion for creativity, quality and commitment to community, the first Dog Haus opened inPasadena, California in 2010. Although Dog Haus only contains twenty five active properties,there has been big news to expand the franchise. In October of 2016 Dog Haus announced adevelopment agreement with American Development Partners which will include theconstruction of over 300 new Dog Haus franchise locations in 12 states over the next sevenyears, making it one of the fastest growing (QSR) food concepts in the United States (See articleto the right). The new locations are slated to be constructed on land primarily purchased for“built to suit” and stand-alone Dog Haus Biergarten concepts, and will be operated by veteranfranchisees with extensive multi-unit and multi-brand experience. The deal – which is AmericanDevelopment Partners’ biggest commitment to date – has a projected real estate, constructionand design investment value of over $500 million.

TENANT INFOIN THE NEWS – Press Release

October 18, 2016

Dog Haus Announces Massive National Franchise Development Deal

Pasadena, CA (Restaurantnews.com) Dog Haus, Pasadena, CAbased gourmet hot dog, sausage and burger concept, hasannounced a development agreement with AmericanDevelopment Partners which will include the construction ofover 300 new Dog Haus franchise locations in 12 states over thenext 7 years, making it one of the fastest growing food conceptsin the United State. The new locations are slated to beconstructed on land primarily purchased for “built to suit” andstand alone Dog Haus Biergarten concepts, and will be operatedby veteran franchisees with extensive multi-unit and multi-brand experience. The deal – which is American DevelopmentPartners’ biggest commitment to date – has a projected realestate, construction and design investment value of over $500million.

Dog Haus currently has 21 stores open in five states (AZ, CA, CO,NV, UT) which will nor grow to 19 states across the country withstores set to open in AL, FL, GA, IL, KY, LA, MD, MI, OH, NY, PA,TX, TN and WY. With this deal, the total number of Dog Hauslocations across the country including previous franchisees sold,will now total over 450 locations with 10 out of 19 states – 20%of the country – now sold out.

Rendering new locations – NOT subject property

PRESS RELEASES

TENANT INFO

Rendering new locations – NOT subject property

CURRENT LOCATIONS

Overview

Price $3,999,999

Gross Leasable Area 4,748 SF

Lot Size 1.85 Acres

Net Operating Income $270,000

CAP Rate 6.75%

Year Built 1st Q 2018

Lease Abstract

Lease Type NNN

Lease Term 20 Years

Lease Start Upon Receipt of Certificate of Occupancy

Renewal Options 3 Five-Year Options

Increases 2% Annually

Roof and Structure Tenant Responsible

THE OFFERINGAnnualized Operating Data

Lease Term Annual Rent

Year 1 $270,000

Year 2 $275,400

Year 3 $280,908

Year 4 $286,526

Year 5 $292,256

Year 6 $298,101

Year 7 $304,063

Year 8 $310,144

Year 9 $316,347

Year 10 $322,674

Year 11 $329,128

Year 12 $335,710

Year 13 $342,425

Year 14 $349,273

Year 15 $356,259

Year 16 $363,384

Year 17 $370,651

Year 18 $378,064

Year 19 $385,626

Year 20 $393,338

1200% Growth by 2024

$500 million Expanded Franchise Agreement

300+/-

Locations by 2024

Decatur Airport

Population 1-Mile 3-Mile 5-Mile

2011 3,576 25,793 60,314

2016 3,237 25,639 59,592

2021 3,242 25,680 58,862

2016 Household Incomes

1-Mile 3-Mile 5-Mile

Average $80,780 $68,659 $58,709

Median $67,010 $52,805 $43,052

Decatur is the largest city and the county seat of Macon County in the U.S. state ofIllinois. Decatur has vast industrial and agricultural processing production. Decaturhas been ranked third in the nation as an Emerging Logistics and Distribution Centerby Business Facilities: The Location Advisor and also a Top 25 Trade City by GlobalTrade Magazine. In 2013 the Economic Development Corporation of Decatur & MaconCounty established the Midwest Inland Port, a multi-modal transportation hub withmarket proximity to 95 million customers in a 500-mile radius.

The subject site was originally a Ruby Tuesdays. Located on the corner of 44th St &Route 36. The site is located in front of a Medical Clinic and is adjacent to Kid’s CastleLearning Center. Next to the site is Prairie State Bank & Trust. Located aprox 1,000yards from a Walmart anchored shopping center which is also home to a Kroger, DQGrill, GNC, Subway, McDonalds, Walgreens, Arby’s, Culver’s, BP Gasoline Station, Steak& Shake, and the Decatur Earthmover Credit Union. Directly across from the Walmartis Jimmy John’s a Dollar tree and several regional retailers. Decatur airport isopposite all this retail across Route 36. Due to all this retail, the site has 20,000vehicles passing in front of it daily.

DECATUR, ILLINOIS

$58,7095-mile radius average HH Income

59,5925-mile radius population

24,2795-mile radius number of households

Dog Haus|4405 Route 36 East, Decatur, IL 62521

Lior RegenstreifSenior Managing Director InvestmentsSenior Director, Net Leased Properties GroupTel: (818) 212-2730Fax: (818) 212-2710 lior.Regenstreif@marcusmillichap.comLicense: CA #01267761