IHOP (Corporate Guarantee) EAST LANSING, MI

OFFERING MEMORANDUM

IHOP (Corporate Guarantee) EAST LANSING, MI

CONFIDENTIALITY AND DISCLAIMER

The 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 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.

NON-ENDORSEMENT NOTICE Marcus & 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.

IHOP (Corporate Guarantee) EAST LANSING, MI

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 and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, 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 information before 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 future performance 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 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 to 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 all legal 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, may be 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; the tenant 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 be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation 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 tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate 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.

IHOP (Corporate Guarantee) TABLE OF CONTENTS

Section 1

PRICING AND FINANCIAL ANALYSIS

Section 2

PROPERTY DESCRIPTION

Section 3

RECENT SALES

Section 4

MARKET OVERVIEW

Section 5

DEMOGRAPHIC ANALYSIS

PRICING AND FINANCIAL ANALYSIS

IHOP (Corporate Guarantee) EAST LANSING, MI

IHOP (Corporate Guarantee) EAST LANSING, MI

PRICING AND FINANCIAL ANALYSIS

FINANCING Existing Financing Loan Type

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage 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 of Detroit, Inc. © 2014 V0121003 Marcus & Millichap. All rights reserved.

Free and Clear

1

IHOP (Corporate Guarantee) PRICING AND FINANCIAL ANALYSIS

EAST LANSING, MI

FINANCIAL OVERVIEW Location

Annualized Operating Data

2771 E Grand River Ave East Lansing, MI 48823

Rent Increases

Price Down Payment Rentable Square Feet Price/SF

Annual Rent

Monthly Rent

Current - 11/30/16 12/1/16 - 11/30/21

$144,355.00 $158,791.00

$12,029.58 $13,232.58

$2,443,000

Option One (2021-2026)

$174,670.00

$14,555.83

100% / $2,443,000

Option Two (2026-2031) Base Rent ($26.07/SF)

$192,137.00

$16,011.42 $144,355

5,538 $441.13

CAP Rate

5.50%

Year Built

1973

Lot Size Type of Ownership

Property Tax Slippage ($1.81/SF) Net Operating Income Total Return

$10,000 $134,355 5.50% / $134,355

0.97 AC Fee Simple

** Property was renovated in 1996 and 2013.

Tenant Summary Tenant Trade Name Ownership Tenant Lease Guarantor Lease Type Roof and Structure Lease Term

DineEquity Public IHOP Corporate Guarantee Double Net Tenant Responsible 25 Years

Lease Commencement

8/19/1996

Rent Commencement Date

12/1/1996

Lease Expiration Date Term Remaining on Lease Increases Options

11/30/2021 Seven Years and One Month 10 Percent Every Five Years Two (2), Five (5)

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage 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 of Detroit, Inc. © 2014 V0121003 Marcus & Millichap. All rights reserved.

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IHOP (Corporate Guarantee) EAST LANSING, MI

PRICING AND FINANCIAL ANALYSIS

TENANT OVERVIEW Property Name Property Address

IHOP (Corporate Guarantee) 2771 E Grand River Ave East Lansing, MI 48823

Property Type Rentable Square Feet

Tenant Trade Name Ownership Tenant Sales Volume Net Worth Lease Guarantor Credit Rating Rating Agency Stock Symbol Board

Net Leased Restaurant - Other 5,538

DineEquity Public IHOP $849 Million $315 Million Corporate Guarantee B S&P DIN NYSE

Lease Commencement Date

8/19/1996

Rent Commencement Date

12/1/1996

Lease Expiration Date Term Remaining on Lease Lease Type Roof and Structure Lease Term Year 1 Net Operating Income Increases

Options to Renew

11/30/2021 Seven Years and One Month Double Net Tenant Responsible 25 Years $144,355 10 Percent Every Five Years

Two (2), Five (5)

Options to Terminate

TBD

Options to Purchase

TBD

First Right of Refusal

TBD

No. of Locations Headquartered Web Site Years in the Business Other Concepts Owned

3,600+ in 17 Countries Glendale, CA www.dineequity.com 55 Applebee's

IHOP, formerly known as The International House of Pancakes, is a United States based restaurant chain that specializes in breakfast foods. The chain is franchised and operated by Glendale, Calif. based International House of Pancakes, LLC and its affiliates. International House of Pancakes, LLC is a wholly-owned subsidiary of DineEquity, Inc. Over 99% of IHOP restaurants are run by independent franchisees. The chain has more than 1,500 restaurants in all 50 states, the District of Columbia, Canada, Mexico, Guatemala, Puerto Rico and the U.S. Virgin Islands. While IHOP's focus is on breakfast foods such as pancakes, French toast and omelettes, it also offers a menu of lunch and dinner items.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage 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 of Detroit, Inc. © 2014 V0121003 Marcus & Millichap. All rights reserved.

3

PROPERTY DESCRIPTION

IHOP (Corporate Guarantee) EAST LANSING, MI

IHOP (Corporate Guarantee) EAST LANSING, MI

PROPERTY DESCRIPTION

INVESTMENT OVERVIEW Investment Highlights ■ Corporately Guaranteed Lease with Over Seven Years Remaining of Base Term ■ Corner Outparcel to Hobby Lobby Anchored Shopping Center ■ 10 Percent Rent Escalations Every Five Years, Including in Two, Five-Year Options | Next Increase in 2016 Raises Cap Rate to 6.64% ■ Ihop Has Occupied the Site Since the Mid-1980’s and the Original Site Has Been a Staple in the Community Since the Early 1960’s ■ The Subject Site is a Relocation Store from a Smaller Unit Located Across the Street From the Site ■ Less than a Half Mile from Michigan State University Campus | Student Population of 49,000 Students ■ Across the Street from Whole Foods Currently under Development ■ Traffic Count of 28,400 Vehicles Per Day

Marcus & Millichap is pleased to present this 5,538-square foot single-tenant, net-leased IHOP property located in East Lansing, Michigan. IHOP has operated in the immediate area since the mid-1960's and relocated to the subject site in the mid 1980's. In 1996 they began a new 25-year double net lease with ten percent rent bumps every five years, including in two, five-year option periods. There are over seven years remaining on the base term. In 2013, the tenant invested significant funds to improve the building internally and externally. The location is an outparcel to a Hobby Lobby-anchored shopping center. Half-a-mile to the west of the subject property is Michigan State University, with a population of 49,000 students. A new Whole Foods market is currently under construction directly across the street. The site sits on Grand River Avenue which has traffic counts of 28,400 vehicles per day. Within three miles of the site, there are 72,780 people with an average household income of $70,700. Within two miles to the east are major retailers, including Walmart, Target, Kroger's, Best Buy, OfficeMax, Meijer's, Home Depot, Toys 'R Us, Kohl's, Marshall's, as well as the Meridian Mall which is anchored by Macy's, JC Penney, Younker's and Schuler's Books. There are minimal landlord responsibilities. Roof and Structure are tenant's responsibilities.There is a minimal property tax responsibility to the landlord.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage 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 of Detroit, Inc. © 2014 V0121003 Marcus & Millichap. All rights reserved.

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IHOP (Corporate Guarantee) EAST LANSING, MI

PROPERTY DESCRIPTION

INVESTMENT OVERVIEW

Backed by years of experience, Trinity Restaurant Group embraces a team environment that knows the restaurant industry inside and out, from management & operations to the corporate structure. Trinity Restaurant Group LLC was founded in early 2004 by John Baker and Dino Savant. John and Dino worked throughout the corporate structure of many national and international brands ranging from quick serve to casual dining. Both partners specialized in a wide variety of areas within the industry, enabling them to apply a diverse skill-set that later allowed them to foster a well respected IHOP Restaurant chain in the Michigan region. Today the company has grown from owning and operating five restaurants to over 24 other locations ranging from casual to quick serve dining. John and Dino continue to be active within the restaurant industry and are involved in the IHOP Marketing Committee, Development Committee, and the Franchisee Co-op. TRG embraces a team environment and takes the opportunity to acknowledge those who encompass leadership, dedication, and a wish to learn the dynamics of the restaurant industry. Trinity is always looking for individuals seeking a competitive, team building environment. TRG acquired several IHOP stores that we’re experiencing hardships and possibilities of closures. Trinity stepped in and turned these stores around by applying a unique and effective methodology that ultimately brought the stores out of a substandard situation. TRG currently operates 11 IHOP locations in Michigan and 15 Jack in the Box locations in the greater Las Vegas area.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage 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 of Detroit, Inc. © 2014 V0121003 Marcus & Millichap. All rights reserved.

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IHOP (Corporate Guarantee) EAST LANSING, MI

PROPERTY DESCRIPTION

PROPERTY SUMMARY The Offering

Property Property Address

IHOP (Corporate Guarantee) 2771 E Grand River Ave East Lansing, MI 48823

Assessor's Parcel Number Zoning

33-02-02-17-379-003 C-2

Site Description

Number of Stories

One

Year Built

1973

Rentable Square Feet

5,538

Lot Size Type of Ownership Parking Parking Ratio

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage 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 of Detroit, Inc. © 2014 V0121003 Marcus & Millichap. All rights reserved.

0.97 AC Fee Simple 50 Park Spaces Nine Parking Space/1,000 SF

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IHOP (Corporate Guarantee) EAST LANSING, MI

PROPERTY DESCRIPTION

PROPERTY PHOTOS

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage 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 of Detroit, Inc. © 2014 V0121003 Marcus & Millichap. All rights reserved.

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IHOP (Corporate Guarantee) EAST LANSING, MI

PROPERTY DESCRIPTION

PICTURES OF HOBBY LOBBY ANCHORED CENTER

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage 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 of Detroit, Inc. © 2014 V0121003 Marcus & Millichap. All rights reserved.

9

IHOP (Corporate Guarantee) PROPERTY DESCRIPTION

EAST LANSING, MI

PICTURES OF SURROUNDING AREA

New Whole Foods Under Development Across Street

Less Than a Half Mile From Michigan State

Indian Hills Golf Course a Mile East of Site Property

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage 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 of Detroit, Inc. © 2014 V0121003 Marcus & Millichap. All rights reserved.

10

IHOP (Corporate Guarantee) PROPERTY DESCRIPTION

EAST LANSING, MI

PICTURES OF SURROUNDING RETAIL

New Starbucks Built to Suit

Local Grocery Chain nearby

National Retailers close to Site

28,000 Vehicles Per Day

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage 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 of Detroit, Inc. © 2014 V0121003 Marcus & Millichap. All rights reserved.

11

IHOP (Corporate Guarantee) EAST LANSING, MI

PROPERTY DESCRIPTION

AREA MAPS

Local Map

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage 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 of Detroit, Inc. © 2014 V0121003 Marcus & Millichap. All rights reserved.

Regional Map

12

IHOP (Corporate Guarantee) EAST LANSING, MI

PROPERTY DESCRIPTION

SITE PLAN

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage 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 of Detroit, Inc. © 2014 V0121003 Marcus & Millichap. All rights reserved.

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This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage 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 of Detroit, Inc. © 2014 V0121003 Marcus & Millichap. All rights reserved.

AERIAL PHOTO

EAST LANSING, MI

IHOP (Corporate Guarantee)

14

PROPERTY DESCRIPTION

RECENT SALES

IHOP (Corporate Guarantee) EAST LANSING, MI

IHOP (Corporate Guarantee) RECENT SALES

EAST LANSING, MI

RECENT SALES MAP

1) 2) 3) 4) 5) 6) 7) 8) 9)

IHOP (Corporate Guarantee) IHOP Overland Park KS IHOP Tampa FL IHOP Pueblo CO IHOP Hillard OH IHOP Ontario CA IHOP Dania Beach FL IHOP Madera CA IHOP Oak Ridge TN IHOP South Lake Tahoe CA

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage 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 of Detroit, Inc. © 2014 V0121003 Marcus & Millichap. All rights reserved.

16

IHOP (Corporate Guarantee) RECENT SALES

EAST LANSING, MI

CAP RATE AND PRICE PER SQUARE FOOT Average Cap Rate 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Subject

IHOP Overland Park KS

IHOP Tampa FL

IHOP Pueblo CO

IHOP Hillard OH

IHOP Ontario CA

IHOP Dania Beach FL

IHOP Madera CA

IHOP Oak Ridge TN

IHOP South Lake Tahoe CA

IHOP Oak Ridge TN

IHOP South Lake Tahoe CA

Average Price per Square Foot 900.00 800.00 700.00 600.00 500.00 400.00 300.00 200.00 100.00 0.00 Subject

IHOP Overland Park KS

IHOP Tampa FL

IHOP Pueblo CO

IHOP Hillard OH

IHOP Ontario CA

IHOP Dania Beach FL

IHOP Madera CA

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage 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 of Detroit, Inc. © 2014 V0121003 Marcus & Millichap. All rights reserved.

17

IHOP (Corporate Guarantee) RECENT SALES

EAST LANSING, MI

RECENT SALES IHOP (Corporate Guarantee) 2771 E Grand River Ave East Lansing, MI 48823

Rentable Square Feet:

5,538

Sales Price:

$2,443,000

Year Built:

1973

Down Payment:

$2,443,000

CAP Rate:

5.50%

Price/SF:

$441.13

Subject Property

Comments Seven Years and Three Months Remain on a Double Net Lease.

IHOP Overland Park KS

1

6936 West 119th Street Overland Park, KS 66209

Close of Escrow:

7/29/2014

Sales Price:

$2,900,000

Rentable SF:

3,424

Down Payment:

N/A

Year Built:

1994

CAP Rate:

7.50%

Price/SF:

$846.96

Comments There are five years remaining on a triple-net lease.

IHOP Tampa FL

2

3501 E Busch Blvd Tampa, FL 33612

Close of Escrow:

5/7/2014

Sales Price:

$1,680,000

Rentable SF:

2,806

Down Payment:

N/A

Year Built:

1967

CAP Rate:

6.17%

Price/SF:

$598.72

Comments There are nine years remaining on an absolute net lease.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage 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 of Detroit, Inc. © 2014 V0121003 Marcus & Millichap. All rights reserved.

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IHOP (Corporate Guarantee) RECENT SALES

EAST LANSING, MI

RECENT SALES IHOP Pueblo CO

3

2015 Pueblo Boulevard South Pueblo, CO 81005

Close of Escrow:

7/14/2014

Sales Price:

$2,300

Rentable SF:

4,026

Down Payment:

N/A

Year Built:

2000

CAP Rate:

6.51%

Price/SF:

$571.00

Comments There are six and one-half years remaining in a triple-net lease.

IHOP Hillard OH

4

5500 Renner Road Hillard, OH 43026

Close of Escrow:

6/27/2014

Sales Price:

$2,464,800

Rentable SF:

5,198

Down Payment:

N/A

Year Built:

1997

CAP Rate:

6.50%

Price/SF:

$437.02

Comments There are six years remaining on a triple-net lease.

IHOP Ontario CA

5

2285 South Archibald Avenue Ontario, CA 91761

Close of Escrow:

1/2/2014

Sales Price:

$2,365,000

Rentable SF:

4,501

Down Payment:

N/A

Year Built:

1988

CAP Rate:

6.00%

Price/SF:

$525.44

Comments This location has nine years remaining on an absolute net lease.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage 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 of Detroit, Inc. © 2014 V0121003 Marcus & Millichap. All rights reserved.

19

IHOP (Corporate Guarantee) RECENT SALES

EAST LANSING, MI

RECENT SALES IHOP Dania Beach FL

6

201 South Federal Highway Dania Beach, FL 33004

Close of Escrow:

11/14/2013

Sales Price:

$1,385,000

Rentable SF:

2,482

Down Payment:

N/A

Year Built:

1970

CAP Rate:

6.99%

Price/SF:

$558.02

Comments There are five and one-half years remaining on a triple-net lease.

IHOP Madera CA

7

2201 West Cleveland Ave Madera, CA 93637

Close of Escrow:

6/27/2017

Sales Price:

$2,495,000

Rentable SF:

4,558

Down Payment:

N/A

Year Built:

1995

CAP Rate:

6.70%

Price/SF:

$547.00

Comments There is approximately 6 years remaining on a triple-net lease.

IHOP Oak Ridge TN

8

355 South Illinois Avenue Oak Ridge, TN 37830

Close of Escrow:

9/17/2013

Sales Price:

$2,200,000

Rentable SF:

3,820

Down Payment:

N/A

Year Built:

1993

CAP Rate:

8.18%

Price/SF:

$575.92

Comments There are four years remaining on a triple-net lease.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage 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 of Detroit, Inc. © 2014 V0121003 Marcus & Millichap. All rights reserved.

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IHOP (Corporate Guarantee) RECENT SALES

EAST LANSING, MI

RECENT SALES IHOP South Lake Tahoe CA

9

3730 Lake Tahoe Boulevard South Lake Tahoe, CA 96150

Close of Escrow:

7/30/2013

Sales Price:

$2,030,000

Rentable SF:

3,213

Down Payment:

N/A

Year Built:

1970

CAP Rate:

6.16%

Price/SF:

$631.81

Comments There are five and one-half years remaining on a triple-net lease.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage 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 of Detroit, Inc. © 2014 V0121003 Marcus & Millichap. All rights reserved.

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MARKET OVERVIEW

IHOP (Corporate Guarantee) EAST LANSING, MI

IHOP (Corporate Guarantee) EAST LANSING, MI

MARKET OVERVIEW

EAST LANSING/MERIDIAN TOWNSHIP MARKET

The subject property sits on the border of East Lansing and Meridian Township. Meridian Township is a loose township consisting of the towns of Haslet and Okemos. East Lansing is a city in the U.S. state of Michigan. The city is located directly east of Lansing, the state capital. Most of the city is within Ingham County, though a small portion lies in Clinton County. The population was 48,579 at the time of the 2010 census, an increase from 46,420 in 2000. It is best known as the home of Michigan State University. Okemos is an unincorporated community in Meridian Charter Township, Ingham County in the U.S. state of Michigan. It is a census-designated place for statistical purposes and does not have any separate legal existence as a municipality. Local government is provided by the township. The population was 21,369 at the 2010 census, with 8,824 households, and 5,416 families residing in the CDP. The population density was 1,274.7 per square mile. There were 9,384 housing units at an average density of 554.9 per square mile. The median income for an average household in the CDP was $62,810, and the median income for a family was $88,459 (These figures had risen to $75,736 and $101,903 respectively as of a 2007 estimate). Males had a median income of $60,601 versus $41,393 for females. The per capita income for the CDP was $33,401. In 2011, CNN Money Magazine rated Okemos as the 12th-best city to live in for "the rich and single" The city's downtown area is centered around Grand River Avenue, a wide tree-lined boulevard that evolved out of the 19th century plank road that connected Lansing to Detroit. Grand River Avenue and Michigan Avenue serves as a dividing line between the Michigan State University campus and the rest of the city. The street is lined with many college-oriented businesses, such as bars, tanning salons, coffee shops, head shops, restaurants (many dine al fresco) and bookstores. Immediately north of downtown are predominantly student neighborhoods. As of the census of 2010, there were 48,579 people, 14,774 households, and 4,811 families residing in the city. The population density was 3,574.6 inhabitants per square mile. There were 15,787 housing units at an average density of 1,161.7 per square mile.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage 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 of Detroit, Inc. © 2014 V0121003 Marcus & Millichap. All rights reserved.

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DEMOGRAPHIC ANALYSIS

IHOP (Corporate Guarantee) EAST LANSING, MI

IHOP (Corporate Guarantee) DEMOGRAPHIC ANALYSIS

EAST LANSING, MI

DEMOGRAPHIC REPORT 2000 Population 2010 Population 2013 Population 2018 Population

1 Mile 14,219 13,987 14,096 14,134

3 Miles 70,735 72,201 72,783 73,350

5 Miles 130,505 134,891 135,883 139,301

2000 Households 2010 Households 2013 Households 2018 Households

3,725 3,683 3,737 3,796

25,078 25,636 25,916 26,424

49,850 52,365 52,851 54,811

2.31

2.20

2.25

6,584

42,626

90,326

$0

$161,461

$110,087

2000 Owner Occupied Housing Units 2000 Renter Occupied Housing Units 2000 Vacant

39.77% 57.43% 3.20%

42.03% 51.41% 5.15%

48.53% 45.93% 5.65%

2013 Owner Occupied Housing Units 2013 Renter Occupied Housing Units 2013 Vacant

37.68% 62.32% 3.21%

44.40% 55.60% 6.27%

48.63% 51.37% 7.75%

2018 Owner Occupied Housing Units 2018 Renter Occupied Housing Units 2018 Vacant

37.32% 62.68% 3.18%

44.49% 55.51% 6.40%

48.26% 51.74% 8.04%

33.1% 13.6% 8.2% 8.5% 15.1% 7.9% 4.3% 3.3% 3.4% 1.2% 1.5%

23.9% 11.5% 9.3% 9.4% 14.3% 10.1% 7.5% 4.6% 4.4% 2.1% 2.9%

20.3% 12.3% 10.1% 12.3% 16.3% 10.3% 7.0% 3.9% 3.6% 1.7% 2.4%

2013 Median Household Income 2013 Per Capita Income

$29,270 $19,193

$43,297 $28,074

$43,687 $27,629

2013 Average Household Income

$53,527

$70,734

$66,835

2013 Average Household Size 2013 Daytime Population 2000 Median Housing Value

$ 0 - $14,999 $ 15,000 - $24,999 $ 25,000 - $34,999 $ 35,000 - $49,999 $ 50,000 - $74,999 $ 75,000 - $99,999 $100,000 - $124,999 $125,000 - $149,999 $150,000 - $199,999 $200,000 - $249,999 $250,000 +

Demographic data © 2012 by Experian. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage 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 of Detroit, Inc. © 2014 V0121003 Marcus & Millichap. All rights reserved.

25

IHOP (Corporate Guarantee) DEMOGRAPHIC ANALYSIS

EAST LANSING, MI

POPULATION DENSITY

Demographic data © 2012 by Experian.

Number of people living in a given area per square mile.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage 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 of Detroit, Inc. © 2014 V0121003 Marcus & Millichap. All rights reserved.

26

IHOP (Corporate Guarantee) DEMOGRAPHIC ANALYSIS

EAST LANSING, MI

EMPLOYMENT DENSITY

Demographic data © 2012 by Experian.

The number of people employed in a given area per square mile.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage 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 of Detroit, Inc. © 2014 V0121003 Marcus & Millichap. All rights reserved.

27

IHOP (Corporate Guarantee) DEMOGRAPHIC ANALYSIS

EAST LANSING, MI

AVERAGE HOUSEHOLD INCOME

Demographic data © 2012 by Experian.

Average income of all the people 15 years and older occupying a single housing unit.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage 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 of Detroit, Inc. © 2014 V0121003 Marcus & Millichap. All rights reserved.

28

IHOP (Corporate Guarantee) DEMOGRAPHIC ANALYSIS

EAST LANSING, MI

TRAFFIC COUNTS

Traffic Count data © 2012 by TrafficMetrix. All rights reserved.

Two-way, average daily traffic volumes. * Traffic Count Estimate

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage 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 of Detroit, Inc. © 2014 V0121003 Marcus & Millichap. All rights reserved.

29

IHOP (Corporate Guarantee) EAST LANSING, MI

OFFERING MEMORANDUM

Exclusively Listed By:

Lior Regenstreif First Vice President Investments Encino Office License: CA: 01267761 Tel: (818)212-2730 Fax: (818)212-2710 [email protected] www.marcusmillichap.com/LiorRegenstreif Steven Chaben Broker MM REIS of Detroit, Inc License: MI: 6502133659 Tel: (248)415-2600 Fax: (248)352-3813 Offices Throughout the U.S. and Canada www.MarcusMillichap.com