West Shore Plaza II - Holland, MI

WEST SHORE PLAZA II HOLLAND, MI

CAPITAL MARKETS | INVESTMENT PROPERTIES

PRICING & FINANCIAL ANALYSIS

WEST SHORE PLAZA II

FINANCIAL ANALYSIS

West Shore Plaza II 12386 Felch Street Holland, MI 49424

Offering Summary Price Cap Rate Net Operating Income Price PSF Occupancy Gross Leasable Area Lot Size

8.00% $362,390 $56.00 100% 1985

PROPERTY DESCRIPTION

Year Built

$4,530,000

± 80,280 SF ± 6.31 Acres

MARKET OVERVIEW 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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

2

PRICING & FINANCIAL ANALYSIS

Current

PSF

Base Rent

$376,956

$4.70

Real Estate Tax Reimb.

$60,044

$.075

Insurance Reimb.

$22,500

$0.28

CAM Reimb.

$50,242

$0.63

Total Exp. Reimbursements

$132,787

$1.65

EFFECTIVE GROSS REVENUE

$509,743

$6.35

Real Estate Taxes

$60,044

$0.75

Insurance

$22,500

$0.28

CAM

$48,000

$0.60

Mgmt. Fee (% of GPI)

$11,309

$0.14

Non-Recoverable Expenses

$5,500

$0.07

$147,353

$1.84

FINANCIAL ANALYSIS

Income & Expenses

WEST SHORE PLAZA II

Expenses

NET OPERATING INCOME

PROPERTY DESCRIPTION

Total Expenses

$362,390

MARKET OVERVIEW 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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

3

RENT ROLL

WEST SHORE PLAZA II

% of Sq Ft

Start

End

Annual Rent

PSF

55,280

68.86%

09/04

08/19

$248,760

$4.50

12386-BC Furniture Warehouse

25,000

31.14%

01/17

12/26

$128,196

$5.13

Occupied

80,280

100.0%

0

0.0%

80,280

100.0%

Tenant

12386-A

Hobby Lobby

Vacant

Escalation Amount

Lease Type NNN

01/22

$5.64 PSF

NNN

$376,956

PROPERTY DESCRIPTION

Total

Escalation Date

FINANCIAL ANALYSIS

Sq Ft

Suite

Lease Notes: [1] Static analysis information obtained from Jan 2017 Rent Roll [2] Hobby Lobby reimburses net of Common Area Maintenance, Insurance, and Real Estate Taxes with a 5% cap on controllable CAM. Analysis assumes Furniture Warehouse reimburses net of CAM, INS, and RET with a 15% Administrative Fee on CAM.

MARKET OVERVIEW 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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2017 STRIVE

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TENANT INFORMATION

WEST SHORE PLAZA II

FINANCIAL ANALYSIS

Tenant Overview Tenant Ownership Years In Business

Consistently included on Forbes’ annual list of America’s largest private companies, Hobby Lobby is an industry leading retailer offering more than 70,000 arts, crafts, hobbies, home decor, holiday, and seasonal products.

Number of Locations Headquarters Website

Hobby Lobby Stores, Inc. Private 44 750+ Oklahoma City, OK www.hobbylobby.com

PROPERTY DESCRIPTION

Tenant Overview Tenant Ownership Furniture Warehouse is an authorized dealer for Ashley Furniture, selling predominantly Ashley Furniture. An occupant for 10 years, Furniture Warehouse is currently undergoing a significant expansion to include an additional 17,000 square feet.

Number of Locations Headquarters Website

Private 10+

MARKET OVERVIEW

Years In Business

Furniture Warehouse, Inc.

1 Holland, MI www.fwholland.net

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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

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INVESTMENT HIGHLIGHTS

WEST SHORE PLAZA II

FINANCIAL ANALYSIS

• Next Door to a Completely Renovated Mall That Was “De-Malled” - www.shopsatwestshore.com • Occupied by Hobby Lobby and Furniture Warehouse, an Ashley Furniture Authorized Retailer • Roof was Completely Replaced in Early 2017 with a New TPO Roof - Includes 10-Year Warranty

PROPERTY DESCRIPTION

• Located in the Heart of the Holland Retail Corridor in a Dense and Growing Market • Priced at Only $56 Per Square Foot - Well Below Replacement Cost • Just Finished a 17,000 Square Foot Expansion for Furniture Warehouse • Surrounding National Retailers Include JCPenney, Burlington Coat Factory, Lowe’s, OfficeMax, Aldi, Kohl’s and Many More

MARKET OVERVIEW

• Traffic Counts Along US-31 Exceed 37,000 Vehicles Per Day with More Than 11,000 on Felch Road • Population in 10 Mile Radius Exceeds 129,000 and Has Average Annual Income of $67,000

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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

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SITE PLAN

WEST SHORE PLAZA II

FINANCIAL ANALYSIS

Felch Street

Furniture Warehouse

Suite

PROPERTY DESCRIPTION

Tenant

Size

Hobby Lobby

12386-A

55,280

Furniture Warehouse

12386-BC

25,000

MARKET OVERVIEW

Not a Part

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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2017 STRIVE

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AERIAL MAP

WEST SHORE PLAZA II

FINANCIAL ANALYSIS PROPERTY DESCRIPTION

37,366 Vehicles per Day

eet Felch Str

NEW ROOF

MARKET OVERVIEW

11,631 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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

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AERIAL MAP

WEST SHORE PLAZA II

FINANCIAL ANALYSIS PROPERTY DESCRIPTION

37,366 Vehicles per Day

Fe lc NEW ROOF

hS tre

et MARKET OVERVIEW

11,631 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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

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LOCAL MAP

WEST SHORE PLAZA II

FINANCIAL ANALYSIS PROPERTY DESCRIPTION MARKET OVERVIEW 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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2017 STRIVE

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REGIONAL MAP

WEST SHORE PLAZA II

FINANCIAL ANALYSIS PROPERTY DESCRIPTION MARKET OVERVIEW 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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2017 STRIVE

11

MARKET SUMMARY

WEST SHORE PLAZA II

FINANCIAL ANALYSIS

Holland is a coastal city in the western region of the Lower Peninsula of Michigan.

It is situated near the eastern shore of Lake Michigan on Lake Macatawa, which is fed by the Macatawa River.

In 2013, Farmer’s Insurance named the Holland/Grand Haven Areas the most secure mid-sized city in the United States. In 2010, Holland was ranked the second healthiest/ happiest town in the United States by the Well-being Index. CNN Money named Holland as one of the top five places to retire in 2006.

Each May Holland hosts an annual Tulip Time Festival, which draws about one million tourists per year. Tulip planting and the festival began in 1930 when 250,000 tulips were planted for the event. Currently six million tulips are used throughout the city.

It has been ranked as America’s third largest town festival and was named Reader’s Digest’s best small town festival.

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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

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MARKET OVERVIEW

The city is the largest municipality of the Holland-Grand Haven Metropolitan Statistical Area and the seventh largest metro area in the state of Michigan. Holland was founded

by Dutch Americans, and is in an area that has a large percentage of citizens of Dutch American heritage.

It is home to Hope College and Western Theological Seminary, institutions of the Reformed Church in America. Holland is known as the “City of Churches” with 170 churches in the greater Holland area, many of which are with the Reformed Church in America and Christian Reformed Church in North America denominations.

PROPERTY DESCRIPTION

HOLLAND, MI

DEMOGRAPHIC STATISTICS

1 Mile

3 Mile

5 Mile

2022 Projection 2017 Estimate 2010 Census Growth 2017-2022 Growth 2010-2017 2017 Population Hispanic Origin

7,424 7,008 6,427 5.94% 9.04% 1,689

56,032 53,063 49,642 5.60% 6.89% 14,014

102,921 97,684 91,980 5.36% 6.20% 20,727

White Black Am. Indian & Alaskan Asian Hawaiian & Pacific Island Other U.S. Armed Forces:

5,182 396 49 1,164 2 215 1

44,099 2,197 494 4,740 58 1,474 21

84,850 3,350 807 6,225 81 2,371 22

2,951 2,775 2,508 6.34% 10.65% 1,264 1,511 $54,231 $48,778

19,397 18,328 17,060 5.83% 7.43% 11,924 6,405 $65,144 $53,892

37,041 35,110 33,013 5.50% 6.35% 25,216 9,894 $68,973 $55,454

693 746 746 267 212 83 12 14

3,756 4,690 4,018 2,709 1,590 674 541 351

6,698 9,087 7,148 5,534 3,062 1,239 1,395 947

FINANCIAL ANALYSIS

Radius

WEST SHORE PLAZA II

Population:

2017 Population by Race:

2022 Projection 2017 Estimate 2010 Census Growth 2017 - 2022 Growth 2010 - 2017 Owner Occupied Renter Occupied 2017 Avg Household Income 2017 Med Household Income

2017 Households by Household Inc:

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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2017 STRIVE

MARKET OVERVIEW

<$25,000 $25,000 - $50,000 $50,000 - $75,000 $75,000 - $100,000 $100,000 - $125,000 $125,000 - $150,000 $150,000 - $200,000 $200,000+

PROPERTY DESCRIPTION

Households:

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CONFIDENTIALITY AGREEMENT The information contained in the following offering memorandum is proprietary and strictly confidential.

It is intended to be reviewed only by the party receiving it from STRIVE and it should not be made available to any other person or entity without the written consent of STRIVE. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to STRIVE. This offering memorandum has been prepared to provide summary, unverified financial and physical 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. STRIVE 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, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenantâ&#x20AC;&#x2122;s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, STRIVE has not verified, and will not verify, any of the information contained herein, nor has STRIVE 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. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT STRIVE AGENT FOR MORE DETAILS.

Net Lease Disclaimer STRIVE 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, STRIVE has not and will not verify any of this information, nor has STRIVE conducted any investigation regarding these matters. STRIVE 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. STRIVE 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 STRIVE 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.

Approved by the Texas Real Estate Commission for Voluntary Use Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

B

Information About Brokerage Services

efore working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner’s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer’s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly.

IF THE BROKER REPRESENTS THE OWNER: The broker becomes the owner’s agent by entering into an agreement with the owner, usually through a written - listing agreement, or by agreeing to act as a subagent by accepting an offer of subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner’s agent anything the buyer would not want the owner to know because an owner’s agent must disclose to the owner any material information known to the agent.

IF THE BROKER REPRESENTS THE BUYER: The broker becomes the buyer’s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer’s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer’s agent anything the owner would not want the buyer to know because a buyer’s agent must disclose to the buyer any material information known to the agent.

IF THE BROKER ACTS AS AN INTERMEDIARY: A broker may act as an intermediary between the parties if the broker complies with The Texas Real Estate License Act. The broker must obtain the written consent of each party to the transaction to act as an

intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermediary in a transaction: (1) shall treat all parties honestly; (2) may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner; (3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and (4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property.

With the parties’ consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party.

If you choose to have a broker represent you, you should enter into a written agreement with the broker that clearly establishes the broker’s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding.

Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records.

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