EXCELLENT 1031 EXCHANGE ASSET

PNC BANK – ALLEN PARK, MI15625 SOUTHFIELD RD, ALLEN PARK, MI 48101

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AFFILIATED BUSINESS DISCLOSURECBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum.

CONFIDENTIALITY AGREEMENTThis is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property. This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the “Owner”), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CBRE, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner. Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied,

as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property. The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived. By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc. If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.

DISCLAIMERThis Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.

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Table of Contents

EXECUTIVE SUMMARY

05LOCATION & PROPERTY

OVERVIEW

07FINANCIAL ANALYSIS

13TENANT OVERVIEW

11

SALES COMPARABLES

16MARKET & AREA

OVERVIEW

19

4

I. Executive Summary

5ExECUTIvE SUMMARY

The Offering:

CBRE Southfield is pleased to offer for sale the fee simple interest in a PNC Bank ground lease located in Allen Park MI. The parcel is .0.74 acres in size and is improved with a 4,666 square foot commercial retail bank building located between I-94 and I-75, near the corner of Southfield Rd. and Allen Rd.

PNC Bank signed a 30-year ground lease that commenced in April of 2005 and has 10% rental escalations every 5 years continuing through the primary term of the lease. There are 5 (five), 10 (ten) year option periods to extend the lease. The option period rents increase 10% every five years. The PNC lease is an absolute net lease with the tenant responsible for all costs associated with maintenance, repairs and replacements of the leased premises, including paying directly for real estate taxes, insurance, and common area maintenance.

On December 31, 2008, PNC Financial services Group, Inc. (“PNC”) merged with National City Corporation (“NCC”), the parent corporation of National City Bank (“NCB”), the original tenant under the Lease of the property at 15625 Southfield Rd, Allen Park, MI 48101. PNC merged NCB into PNC Bank, National Association (“PNC Bank”), and, as the surviving entity, PNC Bank was assigned the lease per the assignment document dated April 2009, and subsequently, is now the official Tenant and Guarantor of the lease.

Lastly, the subject property will be offered free and clear of debt.

Investment Highlights:

1) 30-Year Zero Management Ground Lease (with 16+ Years Remaining)

2) Ground Lease to PNC Bank, National Association (S&P Credit Rating A)

3) Built in 2005

4) Nearly $171M in deposits as of June 30, 2018, exceeding the national average of $62M by over 175%. (FDIC Deposit Market Share Report; www.fdic.gov)

5) Offered Free and Clear of Debt

PROPERTY ADDRESS 15625 Southfield Rd, Allen Park, MI 48101

YEAR BUILT 2005

DRIvE-THROUGHS 4

TOTAL BUILDING AREA 4,666 SF

PARKING 120+ Exclusive, Non-Exclusive, and Shared Spaces

LAND AREA 0.74 Acres

Property Facts:

6

II. Location & Property Overview

7LOCATION & PROPERTY OvERvIEw

Location Overview

The subject property is located along the heavily travelled Southfield Rd. (60,000 vehicles per day) in Allen Park, Michigan. Allen Park is a densely populated community located 15 miles southwest of Downtown Detroit and approximately 7 miles east of DTW Airport. It is conveniently situated between two major thoroughfares in metro-Detroit: Interstates I-94 and I-75.

Southfield Road is a substantial retail corridor in Allen Park. The PNC Bank property is located less than a half-mile away from several newly proposed multi-tenant retail developments as well as a new Hampton Inn that opened in July 2018 as well as a Holiday Inn that is slated to open in November 2018.

Allen Park is adjacent to Dearborn, Michigan, which is the world headquarters of Ford Motor Company. Ford Motor Company is located approximately 5 miles from the subject property and has many satellite facilities and operations nearby. The surrounding retail corridor is also home to nationally-recognized tenants including, but not limited to:

The subject property is located in a re-developed area of the City including the recently relocated municipal offices of Allen Park and its Police Department, as well as a soon to be constructed Culver’s restaurant. Culver’s recently purchased the adjacent property which was a former Ruby Tuesday’s. Culver’s investment further demonstrates the strength and attractiveness of the area for retail business.

- BP- Subway- Ace Hardware- Shell- Citgo- Marathon- Boston Market

- CVS- AutoZone- H&R Block- Sprint- Rite Aid- McDonalds- Kroger

Location Highlights:

» Convenient access to I-94, I-75, and the Southfield Freeway

» Downtown Development Authority actively promotes property values and economic growth

» Less than 2 Miles from Fairlane Green Shopping Center, a 403,776 SF retail center anchored by Target, Home Depot, LA Fitness, and Best Buy

94INTERSTATE

94INTERSTATE

75INTERSTATE

75INTERSTATE

39

39

85

ALLENPARKALLENPARK

DETROITDETROIT

LINCOLNPARK

LINCOLNPARK

MELVINDALEMELVINDALE

DEARBORNHEIGHTS

DEARBORNHEIGHTS

DEARBORNDEARBORN

TAYLORTAYLOR

Ecorse RdEcorse Rd

Pelham Rd

Pelham Rd

Monroe Blvd

Monroe Blvd

Van Born RdVan Born Rd

Wick RdWick Rd

Moore AveMoore Ave

Allen

RdAl

len Rd

Roge

r Ave

Roge

r Ave

Ford

StFo

rd St

Allen

RdAl

len Rd Park

Ave

Park

Ave

W Outer Dr

W Outer Dr

Schaefer Hwy

Schaefer Hwy

Dix H

wyDi

x Hwy

Fishe

r Fwy

Fishe

r Fwy

Southfield Rd

Southfield Rd

Detroit Industrial Expy

Detroit Industrial Expy

8LOCATION & PROPERTY OvERvIEw

Location Aerial Map Showing Interstates (I-94 & I-75)

9LOCATION & PROPERTY OvERvIEw

Southfield Rd

Southfield Rd

Quan

dt Av

e

Quan

dt Av

e

Kim

Ave

Kim

Ave

Allen RdAllen Rd

Allen

RdAll

en Rd

Ecorse RdEcorse Rd

Philomene Blvd

Philomene Blvd

Park

Ave

Park

Ave

Garfield AveGarfield Ave

White AveWhite Ave

Roos

evel

t Ave

Roos

evel

t Ave

56,932 VPD56,932 VPD

61,700 VPD61,700 VPD

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Allen Park City Hall& Police Department

Location Aerial Map

10LOCATION & PROPERTY OvERvIEw

Property Photos

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III. Tenant Overview

12TENANT OvERvIEw

PROPERTY NAME: PNC Bank

PROPERTY ADDRESS: 15625 Southfield Rd, Allen Park, MI 48101

PROPERTY TYPE: Freestanding, Single Tenant Retail Bank Branch

RENTABLE AREA: 4,666 SF

YEAR BUILT: 2005

GUARANTOR: PNC Bank

OwNERSHIP: Fee Simple

LEASE COMMENCEMENT DATE: 4/12/2005

RENT COMMENCEMENT DATE: 4/12/2005

LEASE ExPIRATION DATE: 4/11/2035

TERM REMAINING: 16+ Years

LEASE TYPE: Ground Lease. Tenant 100% Responsible for all operating costs as well as all repairs and replacements

ORIGINAL LEASE TERM: 30 Years

YEAR 1 NET OPERATING INCOME: $126,445.00

INCREASES: 10% Rental Increase every 5 Years.*

OPTIONS TO RENEw: 5, 10-Year Options

EARLY TERMINATION OPTION: None

OPTION TO PURCHASE: Yes

RIGHT OF FIRST REFUSAL: First Offer to Tenant (30-day notice); Tenant decision (15 days thereafter)

Tenant Overview

* Analysis uses the third (3rd) rental escalation (occurring 4/12/2020) amount of $126,445.00

13

Iv. Financial Analysis

14FINANCIAL ANALYSIS

Financial AnalysisPNC BANK (GROUND LEASE)

YEAR ONE CASH FLOw ESTIMATESASSUMES ALL CASH TRANSACTION

Price $2,528,900Down Payment $2,528,900Rentable Square Feet 4,666Price per Square Foot $542CAP Rate 5.00%

Year One 2/2019 - 1/2020

Monthly Per SF

Base RentNational City Bank of the Midwest Apr. 2005 - Apr. 2035 Thirty (30) years

$126,445.00 $10,537.08 $27.10

Total Base Rent1 $126,445.00 $10,537.08 $27.10 Scheduled Base Rental Revenue $126,445.00 $10,537.08 $27.10 Expense Reimbursement Revenue

Insurance - - - - - - Common Area Maintenance - - - - - - Real Estate Taxes - - - - - -

Total Expense Reimbursement Revenue - - - - - - Gross Potential Income $126,445.00 $10,537.08 $27.10 Effective Gross Income $126,445.00 $10,537.08 $27.10 Operating Expense Estimates

Insurance - - - - - - Common Area Maintenance - - - - - - Real Estate Taxes - - - - - - Total Common Area Expenses - - - - - -

Management Fee - - - - - - - - Replacement Reserve - - - - - - - - Total Expenses - - - - - - Net Operating Income $126,445.00 $10,537.08 $27.10

1 The sale price is calculated using the third (3rd) rental escalation (occurring 4/12/2020) amount of $126,445.00 and the Seller shall escrow the difference from the scheduled rent to the Buyer.

Footnotes:

15

v. Sales Comparables

16SALES COMPARABLES

Sales Comparables

PNC BANK(GROUND

LEASE)SALE

COMPARABLES

BUILDING NAME ADDRESS

YEAR BUILT

BUILDING SIZE(SF)

SALE DATE SALES PRICE PRICE/SF CAP RATE NOI NOI/SFTERM REMAINING

(YEARS)COMMENTS

PNC Bank (Ground Lease)15625 Southfield RdAllen Park, MI 48101

2005 4,666Subject Property

$2,528,900 $542 5.00% $126,445 $27.10 17.0

4,666 square foot (SF) PNC Bank on a 0.74 acre ground lease with a little under seventeen (17) years remaining on the main term. This property lies in the Downriver North Submarket in Allen Park, MI and is situated near the corner of Southfield Rd and Allen Rd.

1

PNC Bank (Ground Lease) 1151 S York Rd Bensenville, IL 60106

2011 3,181 12/13/2016 $2,962,000 $931 4.83% $143,065 $44.97 16.0

3,181 square foot (SF) PNC that sold for $2,962,000 on 12/13/2016 or about $931 per square foot (PSF). This pricing came from a net operating income (NOI) of $143,065 and a cap rate of 4.83%. There was approximately sixteen (16) years remaining on the ground lease at the time of sale.

2

PNC Bank (Ground Lease) 855 Woodstock Rd Roswell, GA 30075

2015 3,550 1/1/2015 $4,810,000 $1,355 4.40% $211,640 $59.62 20.0

3,550 square foot (SF) PNC that sold for $4,810,000 on 1/1/2015 or about $1,355 per square foot (PSF). This pricing came from a net operating income (NOI) of $211,460 and a cap rate of 4.40%. There was approximately twenty (20) years remaining on the ground lease at the time of sale.

3

Chase Bank (Ground Lease) 611 E Lincoln Hwy New Lenox, IL 60451

2011 4,254 2/1/2017 $4,111,250 $966 4.00% $164,450 $38.66 15.0

4,254 square foot (SF) Chase that sold for $4,111,250 on 2/1/2017 or about $966 per square foot (PSF). This pricing came from a net operating income (NOI) of $164,450 and a cap rate of 4.00%. There was approximately fifteen (15) years remaining on the ground lease at the time of sale.

17SALES COMPARABLES

Sales Comparables (cont.)

PNC BANK(GROUND

LEASE)SALE

COMPARABLES

BUILDING NAME ADDRESS

YEAR BUILT

BUILDING SIZE(SF)

SALE DATE SALES PRICE PRICE/SF CAP RATE NOI NOI/SFTERM REMAINING

(YEARS)COMMENTS

4

PNC Bank (Ground Lease) 19 W. Golf Rd Arlington Heights, IL 60005

3,217 On Market $2,975,000 $925 4.81% $143,023 $44.46 21.5

3,217 square foot (SF) PNC on market for $2,975,000 or about $925 per square foot (PSF). This pricing comes from a net operating income (NOI) of $143,023 and a cap rate of 4.81%. There are approximately twenty one and a half (21.5) years remaining on the ground lease.

5

PNC Bank (Ground Lease) 111 Quentin Rd Lake Zurich, IL 60047

3,315 On Market $6,000,000 $1,810 5.00% $300,000 $90.50 16.0

3,315 square foot (SF) PNC on market for $6,000,000 or about $1,810 per square foot (PSF). This pricing comes from a net operating income (NOI) of $300,000 and a cap rate of 5.00%. There are approximately sixteen (16) years remaining on the ground lease.

6

PNC Bank (Ground Lease) 12821 West Bluemound Rd Brookfield, WI 53005

2012 4,020 On Market $2,577,320 $641 4.85% $125,000 $31.09 14.2

4,020 square foot (SF) PNC on market for $2,577,320 or about $641 per square foot (PSF). This pricing comes from a net operating income (NOI) of $125,000 and a cap rate of 4.85%. There are approximately fourteen (14.2) years remaining on the ground lease.

Comparable Averages $1,105 4.65% $181,196 $51.55 17.1

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vI. Market & Area Overview

19MARKET & AREA OvERvIEw

Market & Area Overview

Prominent automobile manufacturing and design center

» The MSA is home to the Big Three automobile manufacturers and two-thirds of the world’s automotive research and development firms.

The Detroit MSA is diversifying

» Professional and business services positions now outnumber manufacturing jobs.

The Detroit MSA contains 187 cities, villages and townships. The largest city is Detroit with a population of 656,573 (15 percent of the MSA total), followed by Warren, Sterling Heights, Dearborn, and Livonia.

The Detroit MSA is served by Interstates 75, 94, 96, 275, 375 and 696, and the Davison, Lodge and Southfield freeways. It also has the Detroit People Mover, an elevated light-rail system that makes a loop within the downtown area, and the Q-Line, a street-level light-rail system connecting Detroit’s New Center to the downtown area. The Ambassador Bridge and Tunnel connecting to Canada is one of the busiest border crossings in the world. Additionally, a new international trade crossing to be named the Gordie Howe International Bridge is slated for delivery by 2024. The region is served by 10 airports, including Detroit/Wayne County Metropolitan Airport in Romulus, the 11th busiest in North America, with 32.6 million passengers annually. The Port of Detroit can handle up to 10 oceangoing vessels at a time and is responsible for close to 16,000 jobs in Southeast Michigan. Over 7 million tons of cargo pass through the port every year.

Detroit’s Gross Metropolitan Product (GMP) grew by 21% between 2012 and 2017, an average of 4.2% growth per year. Metro Detroit’s GMP in 2017 was 260.6 billion dollars, making Detroit the 14th largest MSA by GMP in the United States.

Between August 2017 and August 2018 Metro Detroit unemployment fell 0.9% from 5.1% to just 4.2%, while total wages and salaries increased 3.4% between June 2017 and June 2018.

AREA DEMOGRAPHICS

AREA AvERAGES RADIUS FROM SUBJECT PROPERTY

1mi. 3mi. 5mi.

POPULATION 15,841 128,398 283,856

HOUSEHOLDS 6,548 51,846 113,123

HOUSEHOLD INCOME $71,011 $61,398 $62,158

PER CAPITA INCOME $29,221 $24,893 $24,914

County Income Growth Patterns:

20MARKET & AREA OvERvIEw

Largest Cities and Townships:

» Detroit – 656,573 » Warren – 137,668 » Southfield – 73,093 » Sterling Heights – 134,071 » Dearborn – 100,430 » Livonia – 96,091 » Troy – 84,559

10 Airports

» Detroit/Wayne County Metropolitan Airport- 34.7 million passengers annually

» Willow Run Airport (Ypsilanti)-one of the largest cargo airports in the country, handles over 200 million pounds of cargo annually

Port of Detroit

» Two full-service terminals » Liquid-bulk terminal

6 Interstate Freeways

» I-75, I-94, I-96, I-275, I-375 and I-696

Detroit is:

190 milesfrom Cleveland

290 milesfrom Chicago

300 milesfrom Indianapolis

MARKET & AREA OvERvIEw

CONTACTS: BILL O’CONNOR +1 248 351 2045 bill.oconnor@cbre.com

DAvID HESANO +1 248 351 2014 david.hesano@cbre.com

© 2018 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. Any projections, opinions, or estimates are subject to uncertainty. The information may not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited. PMStudio_October2018