T.G.I. Friday’s NNN Leased Investment – Brooklyn (Cleveland Metro), OH

Note: Photos are the actual property

Brent L. Hensley 216 N. Coast Hwy 101 (760) 452.2401 Encinitas, CA 92024 brent@1031nnnsearch.com www.1031nnnsearch.com

NNN Single Tenant Investment OfferingT.G.I. Friday’s

Brooklyn (Cleveland Metro), OH

T.G.I. Friday’s Restaurant

NNN Lease

10320 Cascade Crossing

Brooklyn, OH 44144

$2,695,810 8.0% Cap

Approx. 9.5 years Remaining on the lease

With Four 5 Year Options to Renew

Great Visibility

Part of the Cascade Crossing with Hampton Inn, Extended Stay America, Chipotle, Steak N Shake

and new Skeetz Convenience Store

High Traffic Location

T.G.I. Friday’s NNN Leased Investment – Brooklyn (Cleveland Metro), OH

Reasons to Buy

Strong National Retail Synergy: Major retailers in the immediate area including Target, Walmart, Sam’s Club, Home Depot and Best Buy illustrating the regional nature of this location.

Proven Location/Long Term Historical Occupancy: Operational as a T.G.I. Friday’s since 1997.

Excellent Visibility/High Traffic Counts:

The property is highly visible from I-480 which has traffic counts of approximately 145,000 cars per day. Tiedeman Road, directly in front of the property, has over 46,000 cars per day.

Absolute Triple Net Lease: There are no Landlord responsibilities allowing for a passive, management free investment.

Strong Daytime Population: Over 900,000 square feet of office space in the trade area as well as a 2,786,000 square foot General Motors manufacturing facility within a half mile of the property. Complemenatry Co-Tenancy: Located in the Cascade Crossing subdivision with an 81 room Hampton Inn, a 127 room Extended Stay America, Steak N Shake, Chipotle, Holley House Irish Pub (opened October 2012 and a new Sheetz Convenience store and gas station.

T.G.I. Friday’s NNN Leased Investment – Brooklyn (Cleveland Metro), OH

Area Description

The subject property consists of the ownership of improved land (2.07+/- acres) occupied by a 7,747 square foot restaurant, bar and kitchen. The property is located directly off of Cascade Crossing, connecting to the busy Tiedeman Road, just 1/8 mile south of the I-480 freeway. The property was originally developed in 1997 as part of the Cascade Crossing retail subdivision.

The original 20 year NNN lease has approximately 9.5 years remaining (as of March 1, 2014) with four 5 year options to renew. It has its next rent increase in 2018 which will be a cumulative CPI not to exceed 5%. Current net income is $211,681.68 + $3,983 (Tenant Reimbursement) for a total annual income of $215,664.84. There are no Landlord responsibilities in the Lease. Tenant pays directly the common area maintenance (CAM) from Cascades Association, Inc. (“Property Owner’s Association”).

The parcel of land is unique as it is situated to provide ample parking for its daily customers as well as reciprocal access with the recently opened Hooley House Irish Pub. The location is surround by and within walking distance of an 81 room Hampton Inn, a 127 room Extended Stay America, Chipotle Mexican Grill, Steak N Shake, Panera Bread, Cracker Barrel, and Carrabba’s Italian restaurant. Other major retailers with a short drive include Target, Walmart, Sam’s Club, Home Depot, IHOP, Burger King, Kmart, Long John Silvers, McDonalds, Perkins and Best Buy to name a few.

The T.G.I. Friday’s is well located just off Tiedeman Road with 46,000+/- cars per day and 1/8 mile south of the I-480 freeway with approximately 145,000 cars per day.

Brooklyn is a city in Cuyahoaga, Ohio, United States, and a suburb of Cleveland. Located just 6 miles southwest of downtown Cleveland, three major highways link Brooklyn to downtown Cleveland, Lake Erie, Hopkins International Airport, the Port of Cleveland, and the rest of the greater Cleveland area. The city itself occupies an area of 4.3 square miles. The city has a very average climate with 37 inches of rainfall and 58 inches of snow a year. The city has on average 162 sunny days out of the year.

As of the 2010 census, the total population is 11,169 in the City of Brooklyn. The median age in Brooklyn is 41.8 years old, with an average household size of 2.8 people per family. The top five employers are Keybank with 2,537 employees (across Tiedeman Road), Arrow International with 629 employees, Plain Dealer Publishing Company with 482 employees and Hugo Boss with 421 employees.

Because of the close proximity (under 10 miles) to downtown Cleveland, Lake Erie and Hopkins International Airport, the residents of Brooklyn enjoy many recreational opportunities. Brooklyn has many shopping destinations, a city library, unique restaurants, a children’s amusement park, and eve close proximity to the Cleveland Zoo, Cleveland Browns, and Cleveland Indians stadiums. Brooklyn has also become one of the leading and largest nightlife scenes in the region, which attracts people from all across the region to visit the city, and is rapidly growing. The city’s only high school, Brooklyn High, as inducted in the Rock and Roll Hall of Fame for having Elvis Presley perform his first ever recorded concert in the school’s auditorium.

DEMOGRAPHIC SUMMARY (As of 2012)

1 Mile: 10,819 with an average household income of $43,368. 3 Mile: 139,040 with an average household income of $51,030. 5 Mile: 372,946 with an average household income of $52,569.

City of Brooklyn

T.G.I. Friday’s NNN Leased Investment – Brooklyn (Cleveland Metro), OH

Tenant Information This T.G.I. Friday’s location is managed by CFC Restaurant Group, a seven unit

operator. CFC was formed in 1994 and has developed into one of the leading franchisees of the T.G.I. Friday’s concept. The franchise group now owns and manages seven T.G.I. Friday’s locations in the Northeast Ohio and Western Pennsylvania markets. Several of the restaurant locations consistently rank near the top of all of the Friday’s domestic franchised locations in the U.S. The franchise tenant at this location is BP Brooklyn LLC, a single asset entity.

INVESTMENT SUMMARY

Financial Information:

Price: $2,695,810 Cap Rate: 8.0% NOI: $211,681.68 (Additional Rent) ٭$3,983.16 +

Total NOI = $215,664.84 .Tenant reimbursement of One-Time Landlord Rent Discount expires at the end of the Primary Term٭ Property Information: Building Size: 7,747+/- square feet Lot Size: 2.0746+/- acres Address: 10320 Cascade Crossing, Brooklyn, OH 44144 Year Built: 1997 Zoning: Commercial (General) Terms of Sale: All cash or Buyer to obtain own financing.

Lease Information: Lease Guarantor: BP Brooklyn, LLC dba T.G.I. Friday’s Rent Commencement Date: August 27, 2003 Expiration Date: August 31, 2023 Renewal Options: 4 Five year options to renew Rent Increases: CPI increases not to exceed 5% during the primary term and 105% of the previous base rent at each option to renew. Next increase is September 1, 2018 Remaining Term: Approx. 9.5 years (as of 3/1/14) The tenant is responsible, and consistently pays for all property taxes, insurance and maintenance for the property. Original 20 year absolute NNN lease. There is no Tenant First Right of Refusal to Purchase.

T.G.I. Friday’s NNN Leased Investment – Brooklyn (Cleveland Metro), OH

Regional map for Brooklyn (Cleveland Metro), OH

Local Map of Brooklyn, OH and T.G.I. Friday’s Location

MAPS

T.G.I. Friday’s NNN Leased Investment – Brooklyn (Cleveland Metro), OH

Neighborhood Aerial View

Regional Aerial View

T.G.I. Friday’s NNN Leased Investment – Brooklyn (Cleveland Metro), OH

Net Leased Real Properties, Inc. has been retained as the exclusive Broker regarding the sale of this property. To receive an Offering Memorandum, please read this Confidentiality Agreement and agree to the terms. The Offering Memorandum has been prepared by Owner and Broker and does not purport to provide a necessarily accurate summary of the property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information which prospective Buyers may need or desire. All projections have been developed by Owner and Broker and designated sources and are based upon assumptions relating to the general economy, competition, and other factors beyond the control of the Owner and Broker and therefore are subject to variation. No representation is made by Owner or Broker as to the accuracy or completeness of the information contained herein, and nothing contained herein shall be relied on as a promise or representation as to the future performance of the property. Although the information contained herein is believed to be correct, the Owner and Broker and its employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, Owner, Broker, and its employees disclaim any and all liability for representations and warranties, expressed and implied, contained in or omitted from the Offering Memorandum or any other written or oral communication transmitted or made available to the Buyer. The Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of the property or the Owner since the date of preparation of the Offering Memorandum. Analysis and verification of the information contained in the Offering Memorandum are solely the responsibility of the prospective Buyer. Additional information and an opportunity to inspect the property will be made available upon written request to interest and qualified prospective Buyers. By accepting the Offering Memorandum, Buyer agrees to indemnify, defend, protect and hold Owner and Broker and any affiliate of Owner or Broker harmless from and against any and all claims, damages, demands, liabilities, losses, costs or expenses (including reasonable attorney fees) arising, directly or indirectly from any actions or omissions of Owner or Broker, its employees, officers, directors or agents. By accepting the Offering Memorandum, Buyer understands that Net Leased Real Properties, Inc. does not have ownership interest in the subject property and Buyer shall indemnify and hold Owner and Broker harmless from and against any claims, causes of action or liabilities, including, without limitation, reasonable attorney fees and court costs which may be incurred with respect to any claims by Buyer in connection with such statement. Buyer shall indemnify and hold Owner and Broker harmless from and against any claims, causes of action or liabilities, including, without limitation, reasonable attorney fees and court costs which may be incurred with respect to any claims for other real estate commissions, broker fees or finder fees in relation to or in connection with the Property to the extent claimed, through or under Owner. The Owner and Broker each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time with or without notice. The Owner shall have no legal commitment or obligations to any entity reviewing the Offering Memorandum or making an offer to purchase the Property unless a written agreement for the purchase of the Property has been fully executed, delivered, and approved by the Owner and its legal counsel, and any conditions to the Owner obligation thereunder have been satisfied or waived. The 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 the 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 the 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 an offer and from whom you have obtained an agreement of confidentiality) without prior written authorization of the Owner or Broker, and that you will not use the Offering Memorandum or any of the contents in any fashion or manner detrimental to the interest of the Owner or Broker. No employee of Owner is to be contacted without the written approval of Broker and doing so would be a violation of this confidentiality agreement. Buyer and Co-broker agree not to contact the tenants, their employees or customers of any business on the Property without prior permission from the Owner.