Pizza Hut

43650 Schoenherr RoadSterling Heights, Michigan 48313

Offering Memorandum

E X C L U S I V E N E T – L E A S E O F F E R I N G

Marcus & Millichap hereby advises all prospectivepurchasers of Net Leased property as follows:

The information contained in this Marketing Brochure hasbeen obtained from sources we believe to be reliable.However, Marcus & Millichap has not and will not verifyany of this information, nor has Marcus & Millichapconducted any investigation regarding these matters.Marcus & Millichap makes no guarantee, warranty orrepresentation whatsoever about the accuracy orcompleteness of any information provided.

As the Buyer of a net leased property, it is the Buyer’sresponsibility to independently confirm the accuracy andcompleteness of all material information beforecompleting any purchase. This Marketing Brochure is nota substitute for your thorough due diligence investigationof this investment opportunity. Marcus & Millichapexpressly denies any obligation to conduct a due diligenceexamination of this Property for Buyer.

Any projections, opinions, assumptions or estimates usedin this Marketing Brochure are for example only and donot represent the current or future performance of thisproperty. The value of a net leased property to youdepends on factors that should be evaluated by you andyour tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and constructionadvisors should conduct a careful, independentinvestigation of any net leased property to determine toyour satisfaction with the suitability of the property foryour needs.

Like all real estate investments, this investment carriessignificant risks. Buyer and Buyer’s legal and financialadvisors must request and carefully review all legal andfinancial documents related to the property and tenant.While the tenant’s past performance at this or otherlocations is an important consideration, it is not aguarantee of future success. Similarly, the lease rate for

some properties, including newly-constructed facilities ornewly-acquired locations, may be set based on a tenant’sprojected sales with little or no record of actualperformance, or comparable rents for the area. Returnsare not guaranteed; the tenant and any guarantors mayfail to pay the lease rent or property taxes, or may fail tocomply with other material terms of the lease; cash flowmay be interrupted in part or in whole due to market,economic, environmental or other conditions. Regardlessof tenant history and lease guarantees, Buyer isresponsible for conducting his/her own investigation of allmatters affecting the intrinsic value of the property andthe value of any long-term lease, including the likelihoodof locating a replacement tenant if the current tenantshould default or abandon the property, and the leaseterms that Buyer may be able to negotiate with apotential replacement tenant considering the location ofthe property, and Buyer’s legal ability to make alternateuse of the property.

By accepting this Marketing Brochure you agree to releaseMarcus & Millichap Real Estate Investment Services andhold it harmless from any kind of claim, cost, expense, orliability arising out of your investigation and/or purchaseof this net leased property.

CONFIDENTIALITY AND DISCLAIMER

The information contained in the following MarketingBrochure is proprietary and strictly confidential. It isintended to be reviewed only by the party receiving itfrom Marcus & Millichap and should not be made availableto any other person or entity without the written consentof Marcus & Millichap. This Marketing Brochure has beenprepared to provide summary, unverified information toprospective purchasers, and to establish only a preliminarylevel of interest in the subject property. The informationcontained herein is not a substitute for a thorough duediligence investigation. Marcus & Millichap has not madeany investigation, and makes no warranty orrepresentation, with respect to the income or expenses for

the subject property, the future projected financialperformance of the property, the size and square footageof the property and improvements, the presence orabsence of contaminating substances, PCB’s or asbestos,the compliance with State and Federal regulations, thephysical condition of the improvements thereon, or thefinancial condition or business prospects of any tenant, orany tenant’s plans or intentions to continue its occupancyof the subject property. The information contained in thisMarketing Brochure has been obtained from sources webelieve to be reliable; however, Marcus & Millichap hasnot verified, and will not verify, any of the informationcontained herein, nor has Marcus & Millichap conductedany investigation regarding these matters and makes nowarranty or representation whatsoever regarding theaccuracy or completeness of the information provided. Allpotential buyers must take appropriate measures to verifyall of the information set forth herein.

NON-ENDORSEMENT NOTICE

Marcus & Millichap Real Estate Investment Services, Inc.(“M&M”) is not affiliated with, sponsored by, or endorsedby any commercial tenant or lessee identified in thismarketing package. The presence of any corporation’slogo or name is not intended to indicate or implyaffiliation with, or sponsorship or endorsement by, saidcorporation of M&M, its affiliates or subsidiaries, or anyagent, product, service, or commercial listing of M&M,and is solely included for the purpose of providing tenantlessee information about this listing to prospectivecustomers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENTONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAPAGENT FORMORE DETAILS.

CONFIDENTIALITY AND DISCLAIMER

Table of Contents

Financial Overview

Offering TermsInvestment Highlights & OverviewConcept Overview Lease Summary

Location Overview

Location Highlights & OverviewSurrounding Aerial MapProperty PhotosSurrounding Area PhotosLocal MapRegional Map

Demographics

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Property Name Pizza Hut

Property Address 43650 Schoenherr Road

Sterling Heights, MI 48313

Base Annual Rent $71,623

Price per SF $382.37

Rent per SF $25.81

Building Size 2,775 SF

Lot Size 0.89 Acres

Year Built 1985

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 theinformation 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. Marcus & Millichap Real Estate InvestmentServices is a service mark of Marcus &Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap. Activity ID: Y0330098 5

This Pizza Hut is located at 43650 Schoenherr Road in Sterling

Heights, Michigan. The property sits on approximately 0.89 acres of

land and is comprised of roughly 2,775 square feet of building space.

Pizza Hut exercised its second option in 2013 and currently has 6.5

years remaining in lease term. The base annual rent is $71,623.

Pizza Hut is an American restaurant chain and international

franchise, known for their pizza and side dishes. It is now corporately

known as Pizza Hut, Incorporated and is a subsidiary of Yum! Brands,

Incorporated the world's largest restaurant company.

Offering Terms

Investment Overview

Financial Summary

Price NOI CAP Rate

$1,061,083 $71,623 6.75%

Strong Franchisee with Long-Term Operating History

Exceptional Long-Term Tenancy | Tenant Has Been Operating at this Location for Over 15 Years

Franchisee Guarantor

Excellent Location and Strong Demographics

Pizza Hut is a Subsidiary of Yum! Brands, Incorporated, One of the World’s Largest Restaurant Companies

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6This 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 theinformation 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. Marcus & Millichap Real Estate Investment

Services is a service mark of Marcus &Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap. Activity ID: Y0330098

Pizza Hut is an American restaurant chain and international franchise,known for their pizza and side dishes. It is now corporately known as PizzaHut, Incorporated and is a subsidiary of Yum! Brands, Incorporated, theworld's largest restaurant company.

In 2015, the company had 8,599 Pizza Hut locations in the United States,and 5,139 more locations in 92 other countries and territories, making up atotal of 13,728 branches (restaurants or takeout's, including 759 that arecompany-owned and 12,969 that are franchised and licensed) worldwide,excluding 1,903 locations in China, which are in the Yum! China division,and 432 locations in India, which are in the Yum! India division.

As of November, 2014 Pizza Hut revamped their menu, adding five newtoppings, six sauces, 10 crust flavors (like "honey Sriracha" and "gingerboom boom"), and even health-conscious "Skinny Slice" pizzas.

Pizza Hut Overview

Tenant Overview

Redberry Resto Brands, Incorporated was founded in 2005 and is based in Greenfield Park, Canada. Redberry owns and operates 40 Pizza Hut franchises in Quebec and 16 in Ontario. They are considered the principal Pizza Hut franchisee in Quebec.

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7This 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 theinformation 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. Marcus & Millichap Real Estate InvestmentServices is a service mark of Marcus &Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap. Activity ID: Y0330098

Lease Summary

Annualized Operating Data

Property Name Pizza Hut

Property Type Net Leased Fast Casual Dining

Ownership Private

Tenant Redberry Resto Brands Intl Inc.

Guarantor Redberry Resto Brands Intl Inc.

Guarantee Franchisee

Lease Commencement June 11, 1998

Second Option Period Commencement June 11, 2013

Lease Expiration June 10, 2023

Option Period Term Remaining 6.5 Years

Lease Type Absolute Triple-Net (NNN)

Roof & Structure Tenant Responsible

Rent Increases Annual Rent Monthly Rent

Current - June 11, 2023 $71,623 $5,969

Annual Rent $71,623

CAP Rate 6.75%

Price $1,061,083

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Sterling Heights, Michigan

This Pizza Hut property is located at 43650 Schoenherr Road in SterlingHeights, Michigan. Sterling Heights is a city in Macomb County and one ofDetroit's core suburbs. It is the second largest suburb of Metro Detroit andthe fourth largest city in Michigan. Sterling Heights is located approximately20 miles north of downtown Detroit.

Major National Tenants In The Surrounding Area: Macy’s, Lord & Taylor, Kohl’s, Marshall’s, Barnes and Nobles, Target, The Home Depot, Sam’s Club, Costco, Sears, Lowe’s, Meijer, Kroger, Walgreens, CVS

Strong Demographics| 105,085 Individuals Within Three-Mile Radius | 251,477 Individuals Within Five-Mile Radius

Strong Traffic Counts | Approximately 44,480 Vehicles Per Day

Detroit| Located 20 Miles South of Sterling Heights

9This 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 theinformation 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. Marcus & Millichap Real Estate Investment

Services is a service mark of Marcus &Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap. Activity ID: Y0330098

Location Highlights Location Overview

Surrounding Retail and Points of Interest

The subject property is strategically positioned in a dense retail corridor,surrounded by many national and local retail tenants. Major national tenantsin the area include: Macy’s, Lord & Taylor, Kohl’s, Marshall’s, Barnes andNobles, Target, The Home Depot, Sam’s Club, Costco, Sears, Lowe’s, Meijer,Kroger, Walgreens, CVS, Applebee’s, Panera Bread, Arby’s, Red Robin, Steakn’ Shake, and McDonald’s as well as many others. Lakeside Mall, which hasapproximately 150 retail stores, is located in close proximity to the subjectproperty. Other malls and shopping centers in the surrounding area includeShelby Corners, Utica Park Place Shopping Center, and Crosswind CornersShopping Center. Henry Ford Macomb Hospital, which has 435 beds, islocated less than two miles from the property.

Traffic Counts and Demographics

Sterling Heights has approximately 105,085 individuals residing within athree-mile radius of the property and more than 251,477 within a five-mileradius. The Pizza Hut property is located on the corner of Canal Road andSchoenherr Road, which has traffic counts of 44,480 vehicles per day.Additionally, less than a mile west down Canal Road is M-53, other wiseknow as Christopher Columbus Freeway, which has traffic counts of 62,200vehicles per day.

Detroit, Michigan

Detroit is the most populous city in Michigan and the largest city on theUnited States-Canada border. Detroit is a major hub for automotivemanufacturing, and is home of General Motors. Other companiesheadquartered in Detroit include Quicken Loans, Ally Financial, LittleCaesars, DTE Energy, American Axle and Shinola. Detroit Public Schools isthe largest school district in Michigan, with roughly 122,000 studentsenrolled. The City of Detroit anchors the second-largest economic regionin the Midwest, behind Chicago, and the 13th largest in the United States.Detroit and its neighboring Canadian city Windsor are connected through atunnel and various bridges, with the Ambassador Bridge being the busiestinternational crossing in North America. Detroit Metropolitan InternationalAirport serves more than 32,513,555 passengers annually. Detroit’sMidtown has a residential occupancy rate of over 96 percent.

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ADTC 44,480

ADTC 17,639

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 theinformation 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. Marcus & Millichap Real Estate InvestmentServices is a service mark of Marcus &Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap. Activity ID: Y0330098

SURROUNDING AREA MAP

Crosswind Corners Shopping Center

11This 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 theinformation 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. Marcus & Millichap Real Estate Investment

Services is a service mark of Marcus &Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap. Activity ID: Y0330098

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12This 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 theinformation 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. Marcus & Millichap Real Estate InvestmentServices is a service mark of Marcus &Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap. Activity ID: Y0330098

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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 theinformation 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. Marcus & Millichap Real Estate InvestmentServices is a service mark of Marcus &Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap. Activity ID: Y0330098

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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 theinformation 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. Marcus & Millichap Real Estate Investment

Services is a service mark of Marcus &Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap. Activity ID: Y0330098

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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 theinformation 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. Marcus & Millichap Real Estate Investment

Services is a service mark of Marcus &Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap. Activity ID: Y0330098

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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 theinformation 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. Marcus & Millichap Real Estate InvestmentServices is a service mark of Marcus &Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap. Activity ID:Y0330098

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Detroit, MI

18This 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 bearsall 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. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus &

Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap. Activity ID: Y0330098

Population

In 2014, the population in your selected geography is 251,476. The population haschanged by 10.26% since 2000. It is estimated that the population in your area will be261,669 five years from now, which represents a change of 4.05% from the currentyear. The current population is 48.18% male and 51.81% female. The median age ofthe population in your area is 41.3, compare this to the Entire US average which is37.3. The population density in your area is 3,195.20 people per square mile.

Income

In 2014, the median household income for your selected geography is $57,988,compare this to the Entire US average which is currently $51,972. The medianhousehold income for your area has changed by -2.43% since 2000. It is estimatedthat the median household income in your area will be $66,583 five years from now,which represents a change of 14.82% from the current year.

The current year per capita income in your area is $29,410, compare this to the EntireUS average, which is $28,599. The current year average household income in yourarea is $73,446, compare this to the Entire US average which is $74,533.

Employment

In 2014, there are 103,727 employees in your selected area, this is also known as thedaytime population. The 2000 Census revealed that 64.66% of employees areemployed in white-collar occupations in this geography, and 35.22% are employed inblue-collar occupations. In 2014, unemployment in this area is 7.72%. In 2000, theaverage time traveled to work was 28.9 minutes.

1-Mile 3-Mile 5-Mile

2010 12,994 103,740 247,381

2014 13,132 105,085 251,477

2019 13,735 108,393 261,670

POPULATION

1-Mile 3-Mile 5-Mile

Average $68,140 $70,199 $73,446

Median $56,250 $55,849 $57,989

2014 HOUSEHOLD INCOME

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Employers # of Employees

Ford Motor Co. 55,342

General Motors 41,861

Chrysler 32,597

TOP EMPLOYERS IN DETROIT

Detroit, Michigan

T H E N N N P R O G R O U P