Offering Memorandum

MR. HERO13720 Lorain Ave • Cleveland, OH 44111

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

Confidentiality and DisclaimerThe 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & 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.

MR. HERO

Cleveland, OH

ACT ID ZAA0280565

Broker of Record: Michael Glass

District Manager, Lic. # BRK.2007005898230 West St., Suite 100, Columbus, OH 43215

TEL: 614-360-9800

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N E T L E A S E D D I S C L A I M E R

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.

3

TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01Offering Summary

Location Overview

Regional and Local Map

Aerial Photo

FINANCIAL ANALYSIS 02Acquisition Financing

MARKET OVERVIEW 03Market Analysis

Demographic Analysis

MR. HERO

4

MR. HERO

5

INVESTMENT

OVERVIEW

#

EXECUTIVE SUMMARY

OFFERING SUMMARY

#

MR. HERO

6

MR. HERO

6

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER# OF EMPLOYEES

*

Metrohealth System The 6,000

METROHEALTH 4,000

Ford 2,832

Clevelan Clinic Hlth Sys W Reg 2,800

General Motors 2,028

Area Temps Inc 1,405

Police Dept- District 1 1,400

Cleveland Water Department 1,200

FAIRVIEW WEST PHYSICIAN CENTER

1,187

Fairview Hlth Sys Fderal Cr Un 1,038

Windsor Construction 1,000

Plain Dealer Publishing Co 900

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2018 Estimate Pop 21,425 160,250 316,779

2010 Census Pop 21,678 162,129 321,409

2018 Estimate HH 9,173 71,059 135,856

2010 Census HH 9,378 72,739 139,348

Median HH Income $43,329 $42,397 $43,991

Per Capita Income $22,745 $26,410 $26,451

Average HH Income $53,122 $59,280 $61,348

* # of Employees based on 5 mile radius

NOTES: Tenant Annual Tax Expenses: $5,341.50

Landlord Annual Tax Expenses: $5,341.50

CPI Increases Every 2 Years Starting 8/1/2023

OFFERING SUMMARY

Price $450,000

Net Operating Income $38,659

Capitalization Rate – Current 8.59%

Price / SF $169.36

Rent / SF $14.55

Lease Type NN

Gross Leasable Area 2,657 SF

Year Built / Renovated 1970

Lot Size 0.04 acre(s)

FINANCING

Down Payment All Cash

Net Cash Flow 8.59% / $38,659

Cash on Cash Return 8.59%

Total Return 8.59% / $38,659

MR. HERO

OFFERING SUMMARY

Out-parcel to $14 Million New Development (Self Storage Facility)

13,600 Cars Per Day on Lorain Ave

Less Than 1 Mile From West Park Transit Rail

316,000 People in a 5 Mile Radius

INVESTMENT HIGHLIGHTS

Marcus & Millichap is pleased to exclusively list a NN Single Tenant 2,657 square foot Restaurant located in Cleveland, (Cuyahoga County), Ohio.

The subject property is located at 13720 Lorain Avenue and is within proximity to multiple national retailers and multifamily housing. The property is

an out-parcel to a brand new $14,000,000 storage development.

Cleveland is a major city in the U.S. state of Ohio, and the county seat of Cuyahoga County. The city proper has a population of 385,525, making it

the 51st-largest city in the United States, and the second-largest city in Ohio. The city is located on the southern shore of Lake Erie, approximately

60 miles (100 kilometers) west of the Ohio-Pennsylvania state border. It was founded in 1796 near the mouth of the Cuyahoga River. It became a

manufacturing center due to its location on both the river and the lake shore, as well as being connected to numerous canals and railroad lines.

Cleveland's economy relies on diversified sectors such as manufacturing, financial services, healthcare, and biomedicals. Cleveland is also home

to the Rock and Roll Hall of Fame.

INVESTMENT OVERVIEW

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12

TENANT PROFILES

MR. HERO

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Mr. Hero

Since the company’s inception in 1965, Mr. Hero has expanded

its brand into Toledo, Columbus, Akron, and all throughout

Northeast Ohio. The Corporate Headquarters, Restaurant

Developers Corporation of Cleveland, Ohio, is the franchising

company behind Mr. Hero restaurants.

The future of Mr. Hero is dedicated to providing outstanding

quality products, and fast, efficient, friendly customer service in

an environment where cleanliness and organization are of the

highest caliber.

General Information

Tenant Name Mr. Hero

Website www.mrhero.com

Parent Company N/A

Headquartered Cleveland, OH

Rentable Square Feet 2,657 SF

Percentage of RBA 100%

Lease Commencement 8/1/2018

Lease Expiration 7/31/2028

No. of Locations 100+

#

CLOSE PROXIMITY TO:

13720 Lorain Ave, Cleveland, OH 44111

Out-parcel to $14 Million New Development

(Self Storage Facility)

13,600 Cars Per Day on Lorain Ave

Less Than 1 Mile From West Park Transit Rail

316,000 People in a 5 Mile Radius

Cleveland is a major city in the U.S. state of

Ohio, and the county seat of Cuyahoga County.

The city proper has a population of 385,525,

making it the 51st-largest city in the United

States, and the second-largest city in Ohio. The

city is located on the southern shore of Lake

Erie, approximately 60 miles (100 kilometers)

west of the Ohio-Pennsylvania state border. It

was founded in 1796 near the mouth of

the Cuyahoga River. It became a manufacturing

center due to its location on both the river and

the lake shore, as well as being connected to

numerous canals and railroad lines. Cleveland's

economy relies on diversified sectors such as

manufacturing, financial services, healthcare,

and biomedicals. Cleveland is also home to

the Rock and Roll Hall of Fame.

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAMEMR. HERO

PRICING AND VALUATION MATRIX

PROPERTY NAMEMR. HERO

9

LOCATION OVERVIEW

#

13720 Lorain Ave, Cleveland, OH 44111

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAMEMR. HERO

PRICING AND VALUATION MATRIX

PROPERTY NAMEMR. HERO

10

REGIONAL AND LOCAL MAP

AERIAL PHOTO

MR. HERO

11

MR. HERO

12

FINANCIAL

ANALYSIS

#

PROPERTY SUMMARY

OFFERING SUMMARY

#

NOTES: Tenant Annual Tax Expenses: $5,341.50

Landlord Annual Tax Expenses: $5,341.50

CPI Increases Every 2 Years Starting 8/1/2023

MR. HERO

13

OFFERING SUMMARY

0.68 Acres

MARCUS & MILLICHAP CAPITAL CORPORATION

CAPABILITIES

MMCC—our fully integrated, dedicated financing arm—is committed to

providing superior capital market expertise, precisely managed execution, and

unparalleled access to capital sources providing the most competitive rates and

terms.

We leverage our prominent capital market relationships with commercial banks,

life insurance companies, CMBS, private and public debt/equity funds, Fannie

Mae, Freddie Mac and HUD to provide our clients with the greatest range of

financing options.

Our dedicated, knowledgeable experts understand the challenges of financing

and work tirelessly to resolve all potential issues to the benefit of our clients.

National platform

operating

within the firm’s

brokerage

offices

$6.24 billion

billion total

national

volume in 2018

Access to

more capital

sources than

any other firm

in the industry

Optimum financing solutions

to enhance value

Our ability to enhance

buyer pool by expanding

finance options

Our ability to enhance

seller control

• Through buyer

qualification support

• Our ability to manage buyers

finance expectations

• Ability to monitor and

manage buyer/lender

progress, insuring timely,

predictable closings

• By relying on a world class

set of debt/equity sources

and presenting a tightly

underwritten credit file

WHY MMCC?

Closed 1,678

debt and equity

financings

in 2018

ACQUISITION FINANCING

MR. HERO

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MR. HERO

15

MARKET

OVERVIEW

MARKET OVERVIEW

CLEVELANDOVERVIEW

1

The Cleveland metro is situated in the northeastern corner of Ohio,

west of the Pennsylvania state border, and extends 100 miles along

the Lake Erie shore and more than 40 miles inland. It is composed of

Cuyahoga, Geauga, Lake, Lorain and Medina counties and contains

nearly 2.1 million residents, approximately a fifth of the Ohio

population. The eastern part of the region lies on the Appalachian

Plateau, while the western portion sits upon the Lake Plain, hemming

the area in to development. Economic growth and development are

diversifying the region’s industries to include medical and technology

as well as various corporate headquarters. Telecommunications are

also a growing sector, attracting additional tech companies.

MARKET OVERVIEW

METRO HIGHLIGHTS

EXCELLENT INFRASTRUCTURE

Cleveland’s transportation facilities strengthen its

position as a leading center of business, generating

access to other large metros nationwide.

DIVERSIFYING ECONOMY

Education and health services is the largest

employment sector; manufacturing also is

prominent.

REVITALIZING DOWNTOWN

Cleveland’s downtown is experiencing a

metropolitan rebirth as revitalized buildings attract

new businesses, residents and visitors.

MR. HERO

MARKET OVERVIEW

ECONOMY Historically a durable-goods manufacturing area, the metro has recently taken great strides

toward boosting its medical and biotech sectors.

Cleveland is recognized as a global leader in healthcare and medical services. The world-

renowned Cleveland Clinic is one of the area’s largest employers.

Fortune 500 firms located in Cleveland include Parker-Hannifin, Sherwin-Williams,

Progressive, Keycorp, and TravelCenters of America.

Insurance is also a leading industry locally, partly because of the presence of Progressive.

SHARE OF 2018 TOTAL EMPLOYMENT

MAJOR AREA EMPLOYERS

Progressive Corp.

Cleveland Clinic

University Hospitals

Sherwin-Williams Co.

MetroHealth System

KeyCorp

Case Western Reserve University

Parker Hannifin Corp.

Swagelok Co.

Lincoln Electric Holdings, Inc.* Forecast

2

MANUFACTURING

12%GOVERNMENT

HEALTH SERVICES

EDUCATION AND

+OTHER SERVICES

4%

LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES

18%

AND UTILITIES

TRADE, TRANSPORTATION CONSTRUCTION

PROFESSIONAL AND

BUSINESS SERVICES

1%INFORMATION

15%

3%

13% 10% 6%

19%

MR. HERO

MARKET OVERVIEW

DEMOGRAPHICS

SPORTS

EDUCATION

ARTS & ENTERTAINMENT

The metro is expected to add nearly 19,000 people through 2023, which will result in

the formation of approximately 16,200 households, generating demand for housing.

Relatively affordable home prices have produced a homeownership rate of 66 percent,

slightly above the national rate of 64 percent.

Roughly 29 percent of residents age 25 and older have received a bachelor’s degree;

of those residents, 11 percent also have obtained a graduate or professional degree.

Cleveland’s downtown district continues to undergo economic revitalization as buildings

such as the medical mart and convention center and major renovations reshape the city’s

historical centers. Cultural opportunities include the Rock and Roll Hall of Fame and the

Theater District in downtown Cleveland where Playhouse Square is located. The facility

has four theaters that house Opera Cleveland and stage Broadway musicals. Cedar Point

Amusement Park is a short drive away. Only one park in the world has more roller

coasters than Cedar Point. Cleveland is home to several highly ranked institutions of

higher learning, including Case Western Reserve University, Cleveland State University

and John Carroll University in University Heights.

QUALITY OF LIFE

3

* Forecast

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s

Analytics; U.S. Census Bureau

MR. HERO

41.2

2018MEDIAN AGE:

U.S. Median:

38.0

$53,800

2018 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

$58,800

2.1M

2018POPULATION:

Growth2018-2023*:

0.9%

848K

2018HOUSEHOLDS:

1.9%

Growth2018-2023*:

2018 Population by Age

0-4 YEARS

6%5-19 YEARS

18%20-24 YEARS

6%25-44 YEARS

24%45-64 YEARS

28%65+ YEARS

17%

PROPERTY NAME

MARKETING TEAM

MR. HERO

DEMOGRAPHICS

Source: © 2018 Experian

Created on June 2019

POPULATION 1 Miles 3 Miles 5 Miles

2023 Projection

Total Population 21,013 157,437 310,965

2018 Estimate

Total Population 21,425 160,250 316,779

2010 Census

Total Population 21,678 162,129 321,409

2000 Census

Total Population 23,479 175,194 347,766

Current Daytime Population

2018 Estimate 15,953 139,263 293,116

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

2023 Projection

Total Households 9,070 70,455 134,739

2018 Estimate

Total Households 9,173 71,059 135,856

Average (Mean) Household Size 2.35 2.24 2.30

2010 Census

Total Households 9,378 72,739 139,348

2000 Census

Total Households 10,049 77,333 147,525

Occupied Units

2023 Projection 9,070 70,455 134,739

2018 Estimate 10,391 81,707 155,727

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

2018 Estimate

$150,000 or More 2.22% 4.98% 5.24%

$100,000 - $149,000 7.14% 8.84% 9.27%

$75,000 - $99,999 10.33% 10.04% 11.00%

$50,000 - $74,999 22.40% 18.65% 18.78%

$35,000 - $49,999 18.27% 15.75% 15.04%

Under $35,000 39.64% 41.72% 40.67%

Average Household Income $53,122 $59,280 $61,348

Median Household Income $43,329 $42,397 $43,991

Per Capita Income $22,745 $26,410 $26,451

HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 Miles

Total Average Household Retail Expenditure

$54,440 $55,116 $56,486

Consumer Expenditure Top 10 Categories

Housing $14,395 $14,542 $14,860

Transportation $9,025 $9,241 $9,512

Shelter $7,972 $8,034 $8,159

Personal Insurance and Pensions $5,835 $6,022 $6,164

Food $5,631 $5,664 $5,780

Health Care $3,892 $3,908 $4,156

Utilities $3,542 $3,529 $3,614

Entertainment $1,993 $2,076 $2,122

Household Furnishings and Equipment

$1,459 $1,494 $1,558

Apparel $1,340 $1,311 $1,319

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

Population By Age

2018 Estimate Total Population 21,425 160,250 316,779

Under 20 25.08% 23.74% 24.09%

20 to 34 Years 21.47% 24.05% 22.58%

35 to 39 Years 8.09% 7.34% 6.87%

40 to 49 Years 13.85% 12.69% 12.60%

50 to 64 Years 20.02% 19.28% 19.67%

Age 65+ 11.50% 12.91% 14.20%

Median Age 37.08 36.42 37.34

Population 25+ by Education Level

2018 Estimate Population Age 25+ 14,767 111,793 219,877

Elementary (0-8) 2.33% 2.66% 2.96%

Some High School (9-11) 12.36% 10.37% 10.76%

High School Graduate (12) 34.94% 29.18% 30.81%

Some College (13-15) 22.27% 21.79% 21.67%

Associate Degree Only 8.90% 7.11% 7.11%

Bachelors Degree Only 11.01% 17.63% 16.40%

Graduate Degree 6.50% 9.96% 8.98%

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Income

In 2018, the median household income for your selected geography is

$43,991, compare this to the US average which is currently $58,754.

The median household income for your area has changed by 19.28%

since 2000. It is estimated that the median household income in your

area will be $50,856 five years from now, which represents a change

of 15.61% from the current year.

The current year per capita income in your area is $26,451, compare

this to the US average, which is $32,356. The current year average

household income in your area is $61,348, compare this to the US

average which is $84,609.

Population

In 2018, the population in your selected geography is 316,779. The

population has changed by -8.91% since 2000. It is estimated that

the population in your area will be 310,965.00 five years from now,

which represents a change of -1.84% from the current year. The

current population is 48.79% male and 51.21% female. The median

age of the population in your area is 37.34, compare this to the US

average which is 37.95. The population density in your area is

4,026.00 people per square mile.

Households

There are currently 135,856 households in your selected geography.

The number of households has changed by -7.91% since 2000. It is

estimated that the number of households in your area will be 134,739

five years from now, which represents a change of -0.82% from the

current year. The average household size in your area is 2.30 persons.

Employment

In 2018, there are 127,450 employees in your selected area, this is

also known as the daytime population. The 2000 Census revealed

that 58.44% of employees are employed in white-collar occupations

in this geography, and 41.49% are employed in blue-collar

occupations. In 2018, unemployment in this area is 6.00%. In 2000,

the average time traveled to work was 25.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:

74.88% White, 12.04% Black, 0.03% Native American and 2.31%

Asian/Pacific Islander. Compare these to US averages which are:

70.20% White, 12.89% Black, 0.19% Native American and 5.59%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 15.56% of the current year

population in your selected area. Compare this to the US average of

18.01%.

PROPERTY NAME

MARKETING TEAM

MR. HERO

Housing

The median housing value in your area was $116,468 in 2018,

compare this to the US average of $201,842. In 2000, there were

87,790 owner occupied housing units in your area and there were

59,735 renter occupied housing units in your area. The median rent at

the time was $449.

Source: © 2018 Experian

DEMOGRAPHICS

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