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T.G.I. Friday’s185 E Waterfront Dr, Homestead, PA 15120

OFFERING MEMORANDUM

This Marketing Brochure contains select information pertaining to the business and affairs of T.G.I. Friday’s located at 185 E Waterfront Dr, Homestead, PA 15120 here to referred to as “Property”. Information in this Marketing Brochure is confidential and provided solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose and may not be made available to any other person without the written consent of the Seller or Matthews Retail Group, Inc.

This Marketing Brochure has been prepared by Matthews Retail Group, Inc. (also known as Matthews Retail Advisors) based in part upon information supplied by the Seller and in part upon financial information obtained from sources deemed reliable by Matthews Retail Group, Inc. However, Matthews Retail Group, Inc. has not and will not verify any of this information, nor has Matthews Retail Group, Inc. conducted any investigation regarding these matters. Matthews Retail Group, Inc. makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

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 the Buyer’s thorough due diligence investigation of this investment opportunity. Matthews Retail Group, Inc. expressly denies any obligation to conduct a due diligence examination of this Property for the 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 the Buyer depends on factors that should be evaluated by the Buyer and their tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any property to determine to their satisfaction the suitability of the Property for their investment goals.

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 performance.

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 the Seller and Matthews Retail Group, Inc. of any and all liability and hold the parties harmless from any kind of claim, cost, or expense arising out of your investigation and/or purchase of this Property.

NON-ENDORSEMENT NOTICEMatthews Retail Group, Inc. is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this Marketing Brochure. 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 Matthews Retail Group, Inc., its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Matthews Retail Group, Inc., and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

CONFIDENTIALITY & DISCLAIMER STATEMENT

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PRICING AND FINANCIAL ANALYSISInvestment Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Financial Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Company Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

PROPERTY DESCRIPTIONProperty Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Bird’s Eye . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Tenant Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Regional Map. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

DEMOGRAPHICSDemographics Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11City Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

TABLE OF CONTENTS

PRESENTED BY

Scott BurdettBroker of Record

License No. RSR001342

Gary ChouVP & Director

License No. 01911222O 310.919.5827M 714.928.8016gary.chou@matthews.com

Kevin ChangAssociate

License No. 01976724O 310.919.5828M 951.616.8918kevin.chang@matthews.com

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™PRICING AND FINANCIAL ANALYSIS

INVESTMENT HIGHLIGHTS

• Strong Store Performance and Seasoned Franchisee Operator – The Bistro Group currently operates 25 TGI Friday’s and 5 McAlister’s Deli restaurants; This family based operation has been in the business since 1989s and currently employs over 2,800 employees across 4 states (Ohio, Kentucky, West Virginia and Pennsylvania)

• Desirable Waterfront Property – The property is located in the heart of The Waterfront, a 1,100,000 SF open air shopping center situated on the Monongahela River; The development has 8 anchor tenants and 50 other retail tenants

• Main Retail Location – The Waterfront offers the region with access to many national tenants such as Costco, Target, Bed Bath & Beyond, Dick’s Sporting Goods, Office Depot, Old Navy, Macy’s, Best Buy, Michaels, DSW, Chick-fil-A, McDonald’s, AT&T, Red Robin and P.F. Chang’s amongst many more

• Entertainment Hub – As one of the premier retail locations in the greater Pittsburgh area, The Waterfront invites regional residents to the area with fun and exciting entertainment options like AMC, Dave & Buster’s, The Improv (standup comedy), and Sing Sing (dueling pianos)

• Close Proximity to Universities – Carnegie Mellon University and University of Pittsburgh are each less than 5 miles from The Waterfront, offering quick and accessible shopping, dining and entertainment options to over 47,000 students

• Wide-Reaching Casual Dining Concept – TGI Friday’s red and white strips are familiar to the domestic and international community with over 900 locations in the US and 60 other countries

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Investment Overview

EXECUTIVE SUMMARY185 E Waterfront Dr Homestead, PA 15120List Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,194,000CAP Rate - Current. . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.25 %Gross Leasable Area . . . . . . . . . . . . . . . . . . . . . . . . .8,242 SFLot Size . . . . . . . . . . . . . . . . . . . . . . . . ± 1.71 Acres (74,488 SF)Year Built . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2000

ANNUALIZED OPERATING DATAMonthly Rent Annual Rent Increases CAP Rate

Current - 6/29/2018 $28,827.05 $345,925 $41.97 8.25%

Option 1: 6/30/2018 - 6/29/2023

$31,709.75 $380,517 $46.17 9.07%

Option 2: 6/30/2023 - 6/29/2028

$34,880.72 $418,569 $50.78 9.98%

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Financial Overview

TENANT SUMMARYTenant Trade Name T.G.I. Friday's

Type of Ownership Fee Simple

Lease Guarantor Franchisee

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 18 Years

Lease Commencment 6/30/2000

Rent Commencemnt 6/30/2000

Lease Expiration 6/29/2018

Term Remaining 2.08

Increases 10% Every 5 Years & First 2 Option Periods

Options Four (4), 5-Year Options

Property Name TGI Friday’s

Property Type Net Leased Casual Dining

Parent Company Trade Name TGI Friday’s

Ownership Private

No. of Locations ± 900

No. of Employees (All) ± 70,000

Headquartered Carrollton, TX

Web Site www.tgifridays.com

Year Founded 1965

As the original casual dining bar and grill, TGI Fridays offers authentic Ameri-can food and legendary drinks, served with genuine personal service. Bringing people together to socialize and celebrate the freeing and liberating spirit of “Friday” was the concept’s founding premise, from which the brand promise “In Here, It’s Always Friday” was born.

To share that social Fridays experience all over the world, TGI Fridays proudly serves guests with over 900 restaurants in more than 60 countries. Making ev-ery day feel like a Friday wouldn’t be possible without creating a place where friends feel free to get together. That’s why TGI Fridays takes pride in its nearly 8,000 skilled and knowledgeable bartenders, all of whom for the past twenty years have competed annually for the title of the “World’s Greatest TGI Fridays Bartender.

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Company Overview

™PROPERTY DESCRIPTION

THE OFFERINGProperty Name . . . . . . . . . . . . . . . . . . . . . . . . . . T.G.I. Friday’sProperty Address . . . . . . . . . . . . . . . . . . . . .185 E Waterfront Dr Homestead, PA 15120Assessor’s Parcel Number . . . . . . . . . . . . . . . . . . . . . . 130-E-25

SITE DESCRIPTIONNumber of Stories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . OneYear Built . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2000Gross Leasable Area (GLA) . . . . . . . . . . . . . . . . . . . . . 8,242 SFLot Size . . . . . . . . . . . . . . . . . . . . . . . . ± 1.71 Acres (74,488 SF)Type of Ownership. . . . . . . . . . . . . . . . . . . . . . . . . Fee SimpleParking . . . . . . . . . . . . . . . . . . . . . . . . . . ± 75 Surface SpacesParking Ratio . . . . . . . . . . . . . . . . . . . . . . . . . .± 9.10 : 1,000 SFLandscaping . . . . . . . . . . . . . . . . . . . . . . . . . . . . ProfessionalTopography. . . . . . . . . . . . . . . . . . . . . . . . . . . Generally Level

CONSTRUCTIONFoundation . . . . . . . . . . . . . . . . . . . . . . . . . . . .Concrete SlabFraming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .WoodExterior . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BrickParking Surface . . . . . . . . . . . . . . . . . . . . . . . . . . . . .AsphaltRoof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pitched & Flat

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Property Overview

PROPERTY DESCRIPTION

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Bird’s Eye

8

Tenant Map

PROPERTY DESCRIPTION

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Regional Map

™DEMOGRAPHICS

Population 1-Mile 3-Mile 5-Mile

2021 Projection 10,102 122,697 343,959

2016 Estimate 10,032 122,482 343,909

2010 Census 9,964 122,488 344,586

2000 Census 10,300 130,308 378,036

Growth 2016-2021 0.69% 0.18% 0.01%

Growth 2010-2016 0.68% 0.00% -0.20%

Growth 2000-2010 -3.26% -6.00% -8.85%

Households

2021 Projection 4,766 55,572 157,088

2016 Estimate 4,681 55,149 155,867

2010 Census 4,565 54,743 154,563

2000 Census 4,510 57,086 165,053

Growth 2016-2021 1.82% 0.77% 0.78%

Growth 2010-2016 2.55% 0.74% 0.84%

Growth 2000-2010 1.22% -4.11% -6.36%

Income

$0 - $15,000 19.32% 17.11% 19.67%

$15,000 - $24,999 15.10% 12.60% 13.28%

$25,000 - $34,999 12.30% 10.68% 11.47%

$35,000 - $49,999 9.59% 12.02% 13.07%

$50,000 - $74,999 15.20% 16.38% 16.18%

$75,000 - $99,999 8.95% 10.09% 9.80%

$100,000 - $124,999 7.45% 6.75% 6.00%

$125,000 - $149,999 3.90% 4.22% 3.38%

$150,000 - $199,999 3.25% 4.12% 3.32%

$200,000 - $249,999 1.26% 1.94% 1.41%

$250,000 - $499,999 2.02% 2.59% 1.62%

$500,000+ 1.67% 1.50% 0.80%

2016 Est. Average Household Income $66,945 $72,412 $61,571

2016 Est. Median Household Income $40,134 $46,991 $41,404

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Demographics Report

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City Overview

HOMESTEAD, PAHomestead is a borough in Allegheny County, Pennsylvania, located on the Monongahela River valley 7 miles southeast of downtown Pittsburgh and directly across the river from the city limit line. An area of interest in Homestead is the Bost Building. It is a restored brick structure that served as headquarters for the strikers during the 1892 strike by workers at Carnegie Steel. The Bost Building was declared a National Landmark in 1999. It now houses a museum and visitors center of the Rivers of Steel Heritage Area. Much of Homestead and some of the surrounding communities are listed on the National Register of Historic Places as the Homestead Historic District. Many churches, commercial buildings, and homes date to the late 19th century or early 20th century and are of architectural and historic interest. The Carnegie Library of Homestead was opened to the public in 1898. This historic building, now houses, in addition to a public library, a music hall and athletic club open to the public. The impressive stone architecture of the building is set off by the surrounding park.

PITTSBURGH

Pittsburgh is the second largest city in Pennsylvania with a population of 305,482. Pittsburgh is known as both “the Steel City” for its more than 300 steel-related businesses, as well as “the City of Bridges” for its 446 bridges. In 2015, Pittsburgh was named on a list of the “eleven most livable cities in the world.”

Pittsburgh has a rich history in arts and culture dating from 19th century industrialists commissioning and donating public works, such as Heinz Hall for the Performing Arts and the Benedum Center, home to the Pittsburgh Symphony Orchestra and Pittsburgh Opera. Pittsburgh’s major art museums include the Andy Warhol Museum, the Carnegie Museum of Art, the Frick Art & Historical Center, Pittsburgh Center for the Arts and the Mattress Factory.

Pittsburgh boasts several professional teams and in 2009 the city has won the Sporting News title of “Best Sports City” in the United States. and Sperling’s Best Places “top 15 cities for baseball” in 2013. Pittsburgh’s dedication to sports has a long history with its major professional sports teams—the Steelers of the National Football League, the Penguins of the National Hockey League, and the Pirates of Major League Baseball. This tradition of solidarity is unique to Pittsburgh. The black-and-gold color. scheme has since become widely associated with the city

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T.G.I. Friday’s185 E Waterfront Dr, Homestead, PA 15120

OFFERING MEMORANDUM

Scott BurdettBroker of Record

License No. RSR001342

Gary ChouVP & Director

License No. 01911222O 310.919.5827M 714.928.8016gary.chou@matthews.com

Kevin ChangAssociate

License No. 01976724O 310.919.5828M 951.616.8918kevin.chang@matthews.com