Spartan Motors OM 1.14 · 35,&,1* $1' 9$/8$7,21 0$75,;/2&$7,21 29(59,(:7(1$17 6800$5< 3523(57

OFFERING MEMORANDUM

41280 Bridge Street

Novi, Michigan 48375

SPARTAN MOTORS, INC.

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

C O N F I D E N T I A L I T Y & D I S C L A I M E RThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving

it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing

Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in

the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any left

investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial

performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's

or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business

prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing

Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information

contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever

regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set

forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc.

© 2018 Marcus & Millichap. All rights reserved.

N O N - E N D O RS E M E N T N O TI CEMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing 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 tenant lessee information

about this listing to prospective customers.

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

OFFICES THROUGHOUT THE U.S. AND CANADAwww.marcusmillichap.com

NET-LEASED DISCLAIMER

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 andwill not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes noguarantee, warranty or 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 informationbefore completing 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 futureperformance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legaladvisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determineto your 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 alllegal and 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 a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, maybe set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; thetenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may beinterrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer isresponsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, includingthe likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able tonegotiate with a potential replacement tenant considering 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.

OFFICES THROUGHOUT THE U.S. AND CANADAwww.marcusmillichap.com

41280 Bridge Street, Novi, MI 48375PRICING AND VALUATION MATRIX

NOTES

PROPERTY NAME

PRICING AND VALUATION MATRIX

4

PRICING AND VALUATION MATRIXPRICING AND VALUATION MATRIXPRICING AND VALUATION MATRIX

4

PRICING AND VALUATION MATRIX

FINANCIAL ANALYSIS 04

CAP Rate Price Price/SFInitialCash-on-Cash

7.03% $2,985,000 $175.80 8.48%

Operating InformationYear 1 NOI $209,703Rent/SF $12.35Gross Leasable Area 16,980 SF

Financing

New Acquisition Financing $2,089,500

Loan To Value 70.00%

Interest Rate 4.10%

Amortization Period 25 Years

Loan Constant 6.40%

Annual Debt Service Payment $133,738

Year 1 Debt Service Coverage 1.57

Year 1 Debt Yield 10.04%

Year 1 Net Cash Flow After Debt Service $75,965

LEASE SUMMARY

Tenant: Spartan Motors Inc.

Guarantor: Corporate Guarantee

Rent Commencement: January 1, 2020

Initial Lease Term 7 Years

Lease Type: NNN

$12.35/SF$1.03/SF/Month$209,703 Annual Rent

Base Rent:

Rent Increases: Yes

#

PROPERTY SUMMARY OFFERING SUMMARY

#

OFFERING SUMMARY

FINANCIAL ANALYSIS 05

PROPERTY DESCRIPTIONYear Built / Renovated 1996Gross Leasable Area 16,980 SFZoning Light IndustrialType of Ownership Fee SimpleLot Size 1.32 Acres

LEASE SUMMARYProperty Subtype Single Tenant OfficeTenant Spartan Motors Inc.Rent Increases YesGuarantor Corporate GuaranteeLease Type NNNLease Possession January 1, 2020Lease Expiration December 31, 2027Lease Term 7-YearsRenewal Options Two- 3 Year OptionsLandlord Responsibility Roof, Structure and Parking Lot

ANNUALIZED OPERATING INFORMATIONINCOMENet Operating Income $209,703

RENT SCHEDULE

YEAR ANNUAL RENT MONTHLY RENT RENT/SF CAP RATE

Current $209,703 $17,475 $12.35 7.03%Year 2 $214,797 $17,900 $12.65 7.20%Year 3 $219,891 $18,324 $12.95 7.37%Year 4 $224,985 $18,749 $13.25 7.54%Year 5 $230,079 $19,173 $13.55 7.71%Year 6 $235,173 $19,598 $13.85 7.88%Year 7 $240,267 $20,022 $14.15 8.05%

AVERAGE $224,985 $18,749 $13.25 7.54%

THE OFFERINGProperty Spartan Motors Inc.Property Address 41280 Bridge Street

Novi, Michigan 48375Price $2,985,000Capitalization Rate 7.03%Price/SF $175.80

*Notwithstanding anything contained herein to the contrary, in no event shall the Controllable Portion of Property Expenses payable by tenant hereunder increase by more than $0.50/SF of the Premises per annum on a cumulative basis.

**Property management fees associated with managing Landlord’s obligations under this Lease, including but not limited to Landlord’s maintenance, repair and replacement obligations (such management to be provided by The Hooberman Management Company at the initial rate of 5% of Base Rent, subject to the limitation set forth of $0.50/SF.($10,485.15 is part of operating expenses)

12

TENANT PROFILES

6

Spartan Motors Inc.

Today, Spartan Motors has grown its portfolio of brands and products beyond producing high quality custom fire truck chassis. As the North American leader in specialty vehicle manufacturing and assembly for the commercial and retail vehicle industries, they now serve some of the largest brand name customers in the world, across the last mile delivery, specialty service, and vocation-specific upfit categories. In addition, Spartan still manufacturers and assembles fire truck cabs and chassis alongside complete apparatuses, leading the custom-cab fire truck segment in vehicle safety and aerial (or ladder/platform) innovations. Spartan’s expansion into custom chassis engineering and assembly provides a growing number of Class A diesel luxury motor coach “house builders” (RV or motorhome OEMs) with the industry’s premium product that continues to bring safety and technology innovations to dynamic platforms, year-after-year.

Still driven by a commitment to quality and innovation, Spartan and its portfolio of brands have built a global reputation in delivery transport solutions, luxury recreational travel provisions, contract manufacturing and assembly, and of course, emergency response. What we make is crafted with care, inspected for quality, and built to stay on the road.

General Information

Tenant Name Spartan Motors Inc.

Website https://www.spartanmotors.com

Headquartered Charlotte, Michigan

Rentable Square Feet 16,980 SF

Percentage of RBA 100%

Lease Commencement 7/1/2019

Lease Expiration 6/2/2026

No. of Locations 16+/-

INVESTMENT OVERVIEW 06

12

TENANT PROFILES

7INVESTMENT OVERVIEW 07

ENVIRONMENTAL HEALTH AND SAFETY POLICY

Spartan Motors is committed to Environmental, Health & Safety excellence. To this end, Spartan Motors will:

•Protect people and the environment by working to prevent accidents and pollution.•Ensure their facilities and processes are compliant with applicable local, state, and federal regulations (environmental requirements), industry best practices, customer requirements, and other applicable requirements.•Promote environmental and safety achievement through its leadership, and associate involvement across all locations.•Establish, promote and drive toward specific performance goals to ensure continuous safety and environmental improvement.•Provide personnel and resources to maintain a compliance-focused environmental, health and safety management system.Spartan will ensure the environmental policy remains appropriate to the nature, scale and environmental impacts of its activities, products or services, including commitments to pollution prevention. Spartan will maintain compliance and provide a framework for setting and reviewing environmental objectives and targets.

CLOSE PROXIMITY TO:

41280 Bridge Street, Novi, MI 48375

7-Year Lease Term | Annual Escalations Single-Tenant | Triple-Net Lease National Tenant | Nasdaq: SPAR Over $700,000 in Recent Improvements Easy Access via Interstates 96, 275, 696 Corporate Image R&D Facility

Marcus & Millichap is pleased topresent for sale Spartan Motors, Inc. inNovi, Michigan. The approximately16,980-square-foot facility is leased bythe tenant on a triple-net lease basiswith two percent annual increases, 7-year term.

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAME

RICING AND VALUATION MATRIX

PROPERTY NAME

LOCATION OVERVIEW


#

41280 Bridge Street, Novi, MI 48375


PROPERTY NAMESPARTAN MOTOR INC.

PRICING AND VALUATION MATRIXREGIONAL AND LOCAL MAP


#


PROPERTY NAMESPARTAN MOTOR INC.

PRICING AND VALUATION MATRIXREGIONAL AND LOCAL MAP


COMPARABLES MAP

SALES COMPARABLES 12

SPARTAN MOTORS INC. (SUBJECT)

Critical Signal Technologies

Great Lakes Glass Distributors Autoneum North American, Inc.

Tata Technologies, Inc.

ZF Active Safety, US

Yanfeng Interior Motors

SALES COMPARABLES

1

2

3

4

5

6

PROPERTY NAME

SALES COMPARABLESSALES COMPARABLES SALES COMPS AVG


Avg. 7.89%

0.0

0.9

1.8

2.7

3.6

4.5

5.4

6.3

7.2

8.1

9.0

SpartanMotors Inc.

CriticalSignal

Technologies

Great LakesGlass

Distributors

AutoneumNorth

American,Inc.

TataTechnologies,

Inc.

ZF ActiveSafety, US

YanfengInteriorMotors

Average Cap Rate

Avg. $145.14

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$160.00

$180.00

$200.00

SpartanMotors Inc.

CriticalSignal

Technologies

Great LakesGlass

Distributors

AutoneumNorth

American,Inc.

TataTechnologies,

Inc.

ZF ActiveSafety, US

YanfengInteriorMotors

Average Price Per Square Foot

PROPERTY NAME

MARKETING TEAMSALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


14

SALES COMPARABLES

1

Close Of Escrow 1/1/2019

Sales Price $2,820,000

Price/SF $128.18

CAP Rate 8.04%

GLA 22,000 SF

Lot Size 5.50 acre(s)

Year Built 2002

CRITICAL SIGNAL TECHNOLOGIES27475 Meadowbrook, Novi, MI, 48377

2



Price/SF $70.69

CAP Rate 7.54%

GLA 42,300 SF


Year Built 1990

GREAT LAKES GLASS DISTRIBUTORS 12707 Eckles Road, Plymouth, MI, 48170


3



Price/SF $195.62

CAP Rate 7.16%

GLA 80,000 SF


Year Built 2017

AUTONEUM NORTH AMERICAN, INC. 29293 Haggerty Road, Novi, MI, 48377

PROPERTY NAME

MARKETING TEAMSALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


15

SALES COMPARABLES

4



Price/SF $163.11

CAP Rate 8.16%

GLA 30,500 SF


Year Built 2008

TATA TECHNOLOGIES, INC.41050 W 11 Mile Road, Novi, MI, 48375

5



Price/SF $125.47

CAP Rate 7.79%

GLA 100,000 SF


Year Built 1987

ZF ACTIVE SAFETY, US12025 Tech Center Drive, Livonia , MI, 48150


6



Price/SF $187.78

CAP Rate 8.65%

GLA 93,194 SF


Year Built 1979

YANFENG INTERIOR MOTORS41935 W 12 Mile Road, Novi, MI, 48377

Ci t y O fNovi, Michigan

Novi ranks among the top Oakland County communities for research, technology and service companies. To manage growth and continue to attract commerce with its accessible location, Novi partners with local, state and federal agencies to enhance infrastructure. Novi has a, ‘Neighborhoods and Business Relations Group’ to attract and retain businesses and streamlined many of its planning and approvals process to encourage new business and development, as well as re-development. The enhancements speed the process, allowing businesses to move ahead with plans for relocation or expansion. Ryder System, Inc. constructed a new regional headquarters, representing a $22 million investment in the community. ITC Transmission Company, the nation’s largest independent electrical transmission company, made Novi its national headquarters.

Novi is home to some of the region’s largest health care systems. St. John Providence Health System operates the Providence Park Hospital off of Interstate 96 and Beck Road. Henry Ford Health System operated the Henry Ford Medical Center-Columbus. It’s the systems largest facility in Oakland County.

MARKET OVERVIEW 16

Novi was incorporated as a city in 1969, along the borders of the existing Villageof Novi. The township was named, ‘Novi’ when it was organized in 1832 fromFarmington Township.

According to the United States Census Bureau, the city has a total area of 31.28square miles, of which 30.26 square miles is land and 1.02 square miles is water.The city is located on Walled Lake. Several smaller lakes within the city werecreated by gravel pit mining or as storm water retention areas. Most of the citylies within the Rouge River watershed. The city’s location provides direct accessto several major freeways including I-96, I-696, I-275 and M-5.

Novi continues to be one of the fastest growing cities in Michigan. Theconstruction of Twelve Oaks Mall in the 1970s made the city a major shoppingdestination in the Detroit Metropolitan area, containing over 180 stores.

Novi has a local economy that includes businesses of all sizes from internationalcorporations with local and regional offices in Novi, to owner-operated businessserving the local area. While Novi is recognized for its large concentration ofretail businesses clustered at the Novi Road and I-96 interchange, there areseveral large retail centers in the city as well as many individual retail businesses.The city’s industrial and office parks are home to companies in high-techresearch and development, health care, transportation and logistics,manufacturing and domestic and foreign automotive-related suppliers. Energy-related companies are one of the fastest growing sectors in the city.

Detroit // Market Overview

MARKET OVERVIEW 17

DETROIT QUICK FACTS• Known as the Motor City• Site of the Detroit Windsor Tunnel- first traffic

tunnel between two nations• Boasts the Nations Oldest Soda: Vernor’s• Home to Belle Isle Park• Home to Madonna, Aretha Franklin, Kid Rock,

Aaliyah, The White Stripes and Eminem

MARKETING TEAM

Source: © 2015 Experian

PROPERTY NAME

#

CREATED ON JANUARY 2, 2020

PROPERTY NAMESPARTAN MOTORS INC.

DEMOGRAPHICS

1 Miles 3 Miles 5 Miles

POPULATION2023 Projection 4,967 68,138 179,140

2018 Estimate 4,576 64,234 171,596

2010 Census 4,411 60,966 164,657

2000 Census 4,138 57,041 155,626

INCOMEAverage $95,884 $119,359 $117,164

Median $75,110 $87,138 $83,381

Per Capita $46,501 $50,816 $49,493

HOUSEHOLDS2023 Projection 2,467 29,155 75,915

2018 Estimate 2,210 27,304 72,378

2010 Census 2,129 25,879 69,568

2000 Census 1,767 23,539 64,568

HOUSING2018 $219,404 $271,906 $264,824

EMPLOYMENT2018 Daytime Population 14,965 80,542 204,847

2018 Unemployment 1.39% 2.60% 2.84%2018 Median Time Traveled 28 28 28

RACE & ETHNICITYWhite 60.96% 61.04% 69.78%

Native American 0.08% 0.02% 0.02%

African American 8.96% 12.44% 11.09%Asian/Pacific Islander 26.36% 23.20% 15.67%

DEMOGRAPHICS 18

Exclusively Presented by:

John J. GodwinSenior Managing Director Investments

Senior Director-NOIPGDetroit Office

Tel: (248) [email protected]

License: MI 6502339209

Spartan Motors OM 1.14 · 35,&,1* $1' 9$/8$7,21 0$75,;/2&$7,21 29(59,(:7(1$17 6800$5< 3523(57

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