APPLEBEE’S | ABSOLUTE NNN1966 North Henderson, Galesburg, IL 61401

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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 andshould 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, unverifiedinformation 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 duediligence 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, thefuture 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 orasbestos, 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 anytenant'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 bereliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding thesematters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures toverify 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 orname 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.

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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 willnot 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 beforecompleting 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 performanceof 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 toyour 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 legaland 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 nota guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set basedon 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 anyguarantors 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 inwhole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conductinghis/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 areplacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potentialreplacement 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.

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TABLE OF CONTENTS

SECTIONINVESTMENT OVERVIEW 01

Offering Summary

Location Overview

Regional MapRetailer Map

FINANCIAL ANALYSIS 02

Acquisition Financing

MARKET OVERVIEW 03

Market Analysis

Demographic Analysis

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APPLEBEE’S GALESBURG

APPLEBEE’S GALESBURG

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INVESTMENT

OVERVIEW

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OFFERING SUMMARY

Price $3,037,145

Net Operating Income $221,499

Capitalization Rate – Current 7.29%

Price / SF $594.70

Rent / SF $43.37

Lease Type Absolute Net

Gross Leasable Area 5,107 SF

Year Built / Renovated 2013

Lot Size 1.14 acre(s)

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EXECUTIVE SUMMARY

OFFERING SUMMARY

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FINANCING

Loan Amount $1,974,144

Loan Type Financed - New Loan

Loan to Value 65.00%

Interest Rate / Amortization 5.30% / 25 Years

Annual Loan Payment $142,660

Net Cash Flow After Debt Service 7.42% / $78,839

Cash on Cash Return 7.42%

Total Return 11.08% / $117,807

APPLEBEE'S GALESBURG

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APPLEBEE'S GALESBURG

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OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES *

BOARD OF EDUCATION 726

Alstom Signaling Operation LLC 603COMMUNITY COLLEGE DISTRICT NO 400

Francis House The 400

Osf St Marys Med Ctr Galesburg 400

Community Living Options Inc 330

FRANCIS HOUSE THE 300

NationaLease 290

Public Health Illinois Dept 264

Hy-Vee 1215 250

Hy-Vee 1216 250

Shippers Rental Company 248

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2018 Estimate Pop 4,871 28,745 33,751

2010 Census Pop 4,912 29,428 34,602

2018 Estimate HH 2,333 11,248 13,412

2010 Census HH 2,397 11,743 14,019

Median HH Income $46,336 $39,180 $39,876

Per Capita Income $36,100 $22,570 $23,162

Average HH Income $74,143 $54,099 $54,573

* # of Employees based on 5 mile radius

OFFERING SUMMARY

NNN lease , over 11 years rema in ing on the in i t i a l 15-year l ease

Bu i l t - in hedge aga ins t in f l a t ion w i th 2% esca la t ions

F ive (5) , two (2) year renewa l op t ions

Three schoo l s w i th in two mi les o f the s i te

INVESTMENT HIGHLIGHTS

Marcus & Millichap is pleased to offer for sale Applebee's in Galesburg,Illinois. The property is strategically located in a strong retail corridorand over 11 years remaining on a 15-year NNN lease. Nearby majorretailers include Target, JC Penny, Subway, Pizza Hut, Staples, Lowe's,Tractor Supply Co., Wells Fargo, Arby's, and Walgreens. Galesburg HighSchool, Galesburg Elementary School, and Costa Catholic School are allwithin two miles of the site, with a combined enrollment of over 2,000.Galesburg Cottage Hospital is also less than five miles away. Thesubject property is located on North Henderson and US-34 West, whichsees an average traffic count of 17,200 per day. Approximately 28,833individuals reside within a three-mile radius of the property, and 34,034within a five-mile radius.

This is one of four properties in a portfolio and may be purchasedindividually or together.

INVESTMENT OVERVIEW

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APPLEBEE’S GALESBURG

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FINANCIAL

ANALYSIS

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APPLEBEE’S GALESBURG

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PROPERTY SUMMARY

OFFERING SUMMARY

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NOTES

CAP of 7.29% is based on 9/1/19 rent escalation. Seller to credit buyer difference in rent at closing.

APPLEBEE'S GALESBURG

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OFFERING SUMMARY

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TENANT PROFILES

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Applebee’s

Headquartered in Kansas City, Missouri, Applebee's has been providing customers with great service and even better food since 1980. With over2,000 locations worldwide, and a presence in all 50 states, Applebee's is an iconic chain that has strong brand recognition in America, Europe, andAsia. The restaurant prides itself in the commitment it makes to provide the best American food possible, as well as to provide customers with anabove-average dining experience. Applebee's is franchised by subsidiaries of Dine Brands Global Inc., which is one of the world's largest full-service restaurant companies. Currently all Applebee's are owned and operated by entrepreneurs dedicated to serving their local communities andoffering food and drinks with genuine, neighborly service.

The lease is backed by 2 Applebee’s franchisees that collectively operate 19 units. Ask agent for details.

General Information

Tenant Name Franchisee operator dba Applebee’s

Website www.applebees.com

Rentable Square Feet 5,107 SF

Percentage of RBA 100.00%

Lease Commencement 9/1/2015

Lease Expiration 8/31/2030

No. of Locations +2000 Worldwide

APPLEBEE’S GALESBURG

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CLOSE PROXIMITY TO:

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAMEBUFFALO WILD WINGS

PRICING AND VALUATION MATRIX

PROPERTY NAME

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LOCATION OVERVIEW

1966 North Henderson St., Galesburg, IL 61401

APPLEBEE’S GALESBURG

AERIAL PHOTO

APPLEBEE'S GALESBURG

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MARKETOVERVIEW

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APPLEBEE’S GALESBURG

MARKET OVERVIEW

OVERVIEWSPRINGFIELD, IL

GOVERNMENT JOBSThe state of Illinois is the primary driver of the metro’s economy, employing nearly 18,000 people.

ABOVE-AVERAGE EARNINGSStrong employment in diverse industries leads to half of the metro’s households earning more than the national median income.

METRO OF HOMEOWNERSSpringfield’s above-average earnings and a stock relatively affordable residences allow 70 percent of households to own a home, above the national rate of 64 percent.

Abraham Lincoln grew up in the Springfield area and his former home isnow a national historical site that draws many tourists to the region. TheSpringfield metro is situated in central Illinois and consists of Sangamonand Menard counties. The market is approximately 100 miles from St.Louis and 200 miles from Chicago and Indianapolis. The city ofSpringfield is the capital city of Illinois and comprises more than half ofthe metro’s population with roughly 117,000 citizens.

The metro boasts a sizable healthcare sector in addition to its base of government employees. Memorial Health System, St. John’s Hospital, Hospital Sisters Health System and Springfield Clinic employ a combined 14,000 people.

The education sector is the metro’s third largest employer, led by Springfield Public Schools and University of Illinois Springfield.

The economy continues to diversify as a dozen local startups recently received financial and growth assistance through Innovate Springfield, a nonprofit incubator.

The Lincoln home and tomb and Frank Lloyd Wright’s Dana-Thomas House draw tourists.

DEMOGRAPHICS

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ECONOMY

METRO HIGHLIGHTS

* Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau

APPLEBEE'S GALESBURG

212K2017

POPULATION:

89K2017

HOUSEHOLDS:

40.02017

MEDIAN AGE:

$58,200 2017 MEDIAN

HOUSEHOLD INCOME:

U.S. Median:37.8

U.S. Median:$56,3002.7%

Growth2017-2022*:2.1%

Growth2017-2022*:

MARKETING TEAM

Source: © 2015 Experian

PROPERTY NAME

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CREATED ON DECEMBER 30, 2018

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAMEAPPLEBEE'S GALESBURG

PRICING AND VALUATION MATRIX

PROPERTY NAMEAPPLEBEE'S GALESBURG

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DEMOGRAPHICS

1 Miles 3 Miles 5 Miles

POPULATION2022 Projection 4,905 28,418 33,482

2017 Estimate 4,898 28,869 33,963

2010 Census 4,929 29,400 34,616

2000 Census 5,325 30,987 36,372

INCOMEAverage $66,492 $49,662 $50,326

Median $38,976 $35,372 $35,996

Per Capita $32,586 $20,967 $21,556

HOUSEHOLDS2022 Projection 2,393 11,345 13,535

2017 Estimate 2,357 11,363 13,559

2010 Census 2,407 11,748 14,026

2000 Census 2,310 11,973 14,356

HOUSING2017 $119,820 $77,865 $77,358

EMPLOYMENT2017 Daytime Population 8,382 34,383 38,555

2017 Unemployment 6.43% 8.09% 7.74%

2017 Median Time Traveled 16 17 18

RACE & ETHNICITYWhite 89.22% 79.49% 79.99%

Native American 0.13% 0.04% 0.04%

African American 4.74% 11.81% 11.65%Asian/Pacific Islander 2.15% 1.40% 1.29%

MARCUS & MILLICHAP CAPITAL CORPORATION CAPABILITIESMMCC—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 financingand work tirelessly to resolve all potential issues to the benefit of our clients.

National platform operating

within the firm’s brokerage

offices

$5.63 billion total national

volume in 2017

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 1,707 debt and equity

financings in 2017

ACQUISITION FINANCING

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APPLEBEE’S GALESBURG

www.MarcusMillichap.com

Ethan D. OffenbecherFirst Vice President InvestmentsAustin OfficeTel: (512) 338-7858Cel: (832) 544-4460Ethan.Offenbecher@marcusmillichap.comLicense: TX 642658

Steven WeinstockRegional ManagerChicago Oak Brook OfficeTel: (630) 570-2250Fax: (630) 570-2323Steven.Weinstock@marcusmillichap.comLicense: IL 471.011175