New Price $7,550,300| Investment Details

❖ Absolute Net-Lease – Zero Landlord Responsibilities

❖ 10 Year NNN Lease Extension (2/2016) on What Was

Originally a 15 Year Lease

❖ Escalations in Rent Every Two Years

❖ Located in Target Anchored Shopping Center

❖ Affluent Suburb With Household Income Averaging

Over $107,430

❖ Densely Populated Retail Hub

Offering Memorandum

6 0 0 B r o w n Ro a d , A u b u r n H i l l s , M I 4 8 3 2 6

TENANT OVERVIEW

Jo-Ann’s Company Profile

Trade Name JoAnn Fabric and Craft Store

Ownership Private

Annual Sales

Companywide

$2.40(Bil) last reported 2014

EBITDA at approx. $240(mil)

Lease Guarantor Corporate

Parent Company Jo-Ann Stores, Inc.

Locations 852 +/-

Headquarters Hudson, Ohio

Website www.joann.com

Jo-Ann Stores operates is the fragmented and highly

competitive fabric and craft industry. The company is the third

largest player in the industry behind Michael’s Stores and

Hobby Lobby. Jo-Ann Stores was taken private in 2011. The

company continues to expand fairly aggressively having

grown from 750 locations to its current 852 stores in 49 states

since 2014.

Rankings:

2015 Standard & Poor’s Rated CCC+

2015 Moody’s Rating B3

TENANT SUMMARY

852+/- Third Largest Craft Store $2.40 BillionLocations 2014 Reported Sales

Click to Play Video

Overview

New Price $7,550,300

Gross Leasable Area 44,015 SF

Lot Size 3.96 Acres

Year Built 2000

Net Operating Income $490,767

CAP Rate 6.50%

Lease Abstract

Lease Type Absolute Net Lease

Lease Term 10 Year Extension

Lease Start Orig 7/19/2000 & Extended 2/2016

Lease Expiration 1/31/2026

Renewal Options 2 Five-Year

Increases Every Two Years

Roof and Structure Tenant Responsible

Annualized Operating Data

Lease Term Annual Rent

Current (2017) $490,767

2/2019 $495,168

2/2021 $528,180

2/2024 $550,187

Option 1 $576,596

Option 2 $620,611

Marcus & Millichap is pleased to present a Jo-Ann Store, in Auburn Hills, Michigan. This absolute NNN lease with no landlord responsibilities originally commenced on a 15 year lease in July 2000. The

Tenant extended the lease by 10 years commencing February 2016. The new expiration date is now January 31, 2026, with Two 5 year options remaining thereafter. Built in 2000, the lease calls for rent

escalations every two years including during the option periods. This is a corporate guaranteed lease in a growing market and industry.

THE OFFERING

$ 3 0 0 , 0 0 0 P R I C E R E D U C T I O N

Location Map

AREA MAPPING

Location Map

AREA MAPPING

EAST

Chrysler Headquarters

&

Technology Center

The Chrysler Headquarters and Technology

Center is the North American headquarters

and main research and development facility

for the automobile manufacturer FCA US LLC

in the United States. The FCA US LLC

employs over 80,000 people with 15,000 of

them working at the Chrysler Headquarters

& Technology Center. The complex has

5,300,000 square feet on 504 acres. The

FCA US LLC. The complex is also home to a

70,000 square-foot education center, a

conference center, three dining rooms, one

food court, a health clinic, fitness center,

fire department, two sundry shops, two hair

salons and nursing mothers’ rooms.

Chrysler Headquarters

&

Technology Center

Auburn Hills Largest Employer

Location Map

AREA MAPPING

WEST

Population 1-Mile 3-Mile 5-Mile

2016 1,310 37,225 128,636

2020 1,424 38,125 131,518

Top Employers # of Employees

Chrysler Group LLC / FCA 83, 800

Guardian Industries 18,000

Palace Sports & Entertainment, Inc 6,100

2016

Household

Incomes

1-Mile 3-Mile 5-Mile

Average $107,430 $70,535 $80,28

Auburn Hills, MIAuburn Hills is a city in Oakland County, in the state of Michigan. It is home to the world headquarters of

Chrysler, Oakland University, and The Palace of Auburn Hills, which is the home of the Detroit Pistons.

Auburn Hills is home to a prosperous business community. The city’s main tech and office buildings host

80,000 people during the workday. In addition, Auburn Hills is home to a great deal of retail properties.

With the average income over $70,000, Auburn Hills is a growing community contributing to the economic

growth of Michigan.

The Jo-Ann’s on Brown Road is in the Target anchored Auburn Mile Shopping Center. The Jo-Ann shares the

shopping center with an Olive Garden, Meijer, and Target. Just east of the Auburn Mile Shopping Center is a

Home Depot and Sam’s Club which sits in front of a large source of manufacturers, assembly, and tech

corporations. The bulk of retail can be found west of Jo-Ann’s at the Great Lakes Crossing Outlets. The

Great Lakes Crossing Outlets contains over eighty-five major retail properties such as Taco Bell, Panda

Express, Subway, Nike, Hugo Boss, Marshalls, and many more. If residents are not at the outlets, they can

find almost an equal amount of retail bordering the outlets on the north and west sides. Located just north

of the outlets are a Costco, Best Buy, Staples, Kohls, Home Goods, Michaels, and several other nationally

recognized retailers. To the west of the outlets, residents can dine at places such as Subway, Five Guys,

McDonalds, Jimmy Johns, Bobs Burger, or Chili’s. Due to this dense retail corridor, the Jo-Ann store benefits

from exposure to 90,000 vehicles passing in front of the site daily.

$107,4301-mile radius average Household Income

128,6365-mile radius population

70,9955-mile radius number of households

Confidentiality Agreement

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.

Net Leased DisclaimerMarcus & 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.

600 Brown Road, Auburn Hills, Michigan 48326