THE HOME DEPOT · GROUND LEASECLE VEL AND HEIGHTS, OHIO

OFFERING MEMORANDUM

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NET LE ASED DISCL AIMERMarcus & 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 in-formation, 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 docu-ments 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 are a. 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 condition s. 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 aban-don 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.

NON-ENDORSEMENT & DISCL AIMER NOTICECONFIDENTIALIT Y & DISCL AIMERThe 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 Bro-chure has been prepared to provide summary, unverified information to prospec-tive 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 informa-tion 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.

© 2019 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 en-dorsement 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.

Activity ID: ZAA0010128

THE HOME DEPOT · GROUND LE ASE3 4 6 0 M AY F I E L D R O A D · C L E V E L A N D H E I G H T S , O H 4 4 1 1 8

ARMOND AIVA Z YANNet Leased Properties Group

Cell 818.632.9542 Office 650.391.1828

Email aaivazyan@mmreis.comLicense CA 01954384

Marcus & Millichap2626 Hanover StreetPalo Alto, CA 94304

PRESENTED BY

O F F I C E S N AT I O N W I D E A N D T H R O U G H O U T C A N A D A

WWW.MARCUSMILLICHAP.COM

BROKER OF RECORDMICHAEL GL ASS

230 West Street, Suite 100Columbus, OH 43215Office 614.360.9800

License BRK 2007005898

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, as-sumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate

Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2019 Marcus & Millichap. Activity ID: ZAA0010128

± 131,802 SFTOTAL GROSS LEASABLE AREA

(BUILDING + OUTDOOR GARDEN CENTER)

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6.20%CAP RATE

LOCATED IN A DIVERSE AND VITAL SUBURB OF CLE VEL AND, OH

OFFERING HIGHLIGHTS

3460 Mayfield Road, Cleveland Heights, OH 44118

OFFERING PRICE

$13,950,000CAP R ATE

6.20%

VITAL DATA

Price $13,950,000

Cap Rate 6.20%

Net Operating Income $865,000

Gross Leasable Area ±113,847 SF Building and ±17,955 SF Outdoor Garden Center = ±131,802 SF

Lot Size ±10.20 Acres

THE HOME DEPOT · GROUND LE ASEC L E V E L A N D H E I G H T S , O H I O

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LOCATED IN A DIVERSE AND VITAL SUBURB OF CLE VEL AND, OH

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INVESTMENT OVERVIE WMarcus & Millichap is pleased to exclusively present for sale a Home Depot Ground Lease located at 3460 Mayfield

Road in Cleveland Heights, Ohio. The subject property features a ±113,847-square foot building and a ±17,955-square

foot Outdoor Garden Center. The site is situated on a ±10.2 acre lot which anchors the south side of Severance Town

Center, a +600,000-square foot power center featuring tenants such as Marshalls, OfficeMax, Aaron’s, Key Bank,

World Gym, Dave’s Market, Ashley Stewart, GameStop, Burger King, and many other regional tenants.

The road around the Town Center, Severance Circle, is home to businesses and organizations, including Cleveland

Heights City Hall, the Cleveland Heights Post Office, Metro Health Medical Center, Severance Medical Arts Building,

and Spectrum, the local cable provider. There are over 17,000 residents within a one mile radius, with an average

household income of $66,655.

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► 12.5 Years Remaining on NNN Ground Lease

► Recently Signed Lease Extension

► Standard & Poor’s A Credit Rating

► Over 141,000 Residents within 3 Miles

► (NYSE: HD) Over $207 Billion Market Cap

ANCHOR TO +600,000 SF POWER CENTER

NOTABLE NATIONAL AND REGIONAL

CO-TENANTS

HIGH POPUATION — NEAR DENSE

RESIDENTIAL AREA

INVESTMENT HIGHLIGHTS

CLE VEL AND HEIGHTS · OHIO

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3460 Mayfield Rd

NOT INCLUDED IN SALE

NOT INCLUDED IN SALE

THE HOME DEPOT

FINANCIAL ANALYSIS

THE OFFERING

Property The Home Depot

Address3460 Mayfield Road

Cleveland Heights, OH 44118

Price $13,950,000

Cap Rate 6.20%

PROPERT Y DESCRIPTION

Year Built/Renovated 2000

Gross Leasable Area

±131,802 SF

(±113,847 SF Building and

±17,955 SF Outdoor Garden Center)

Type of Ownership Ground Lease

Lot Size ±10.20 Acres

ANNUALIZED OPER ATING INFORMATION

Net Operating Income $865,000

LE ASE SUMMARY

Property Subtype Net Leased Miscellaneous

Tenant Home Depot U.S.A., Inc.

Rent Increases 5% Increase Every 5 Years

Lease Type Ground Lease

Lease Commencement January 9, 1998

Lease Expiration December 31, 2031

Term Remaining on Lease

(Years)12.5

Renewal Options Five, 5-Year Periods

Landlord Responsibility Common Area Maintenance*

Tenant Responsibility Roof, Structure, Utilities, Insurance, Real Estate Taxes**

Right of First Refusal/Offer No

*Common Area Maintenance—Tenant shall pay Landlord a “Fixed CAM Charge” of $90,000

annually, payable in equal monthly installments of $7,500, which rate shall be increased by a

fixed three percent (3%) every three (3) years. Next increase on 1/1/2020. An agreement will

be made where the Shopping Center owner will only charge the new Landlord the “Fixed CAM

Charge” amount only, so that there will be no additional costs or leakage to the landlord other

than what tenant pays for so long as the lease is in place. Thereafter the property will be charged

its pro-rata share of the Shopping Center’s CAM.

**Real Estate Taxes—If Landlord shall sell or otherwise transfer its interest in the Shopping

Center or the Premises and there shall be a reassessment of the Shopping Center or the Prem-

ises, then Tenant shall not be required to participate in any increase in Real Estate Taxes due to

such reassessment; provided, however, that this shall not apply to the first sale or transfer of the

Shopping Center or Premises, but shall apply to all subsequent sales or transfers.

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RENT SCHEDULE

PERIOD ANNUAL BASE RENT MONTHLY BASE RENT CAP R ATE

1/1/2017 – 12/31/2021 $865,000.00 $72,083.33 6.20%

1/1/2022 – 12/31/2026 $908,250.00 $75,687.50 6.51%

1/1/2027 – 12/31/2031 $953,662.50 $79,471.88 6.84%

First Option Term (1/1/2032 – 12/31/2036) $1,001,345.62 $83,445.47 7.18%

Second Option Term (1/1/2037 – 12/31/2041) $1,051,412.90 $87,617.74 7.54%

Third Option Term (1/1/2042 – 12/31/2047) $1,103,983.54 $91,998.63 7.91%

Fourth Option Term (1/1/2048 – 12/31/2051) $1,159,182.72 $96,598.56 8.31%

Fifth Option Term (1/1/2052 – 12/31/2056) $1,217,141.86 $101,428.49 8.73%

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TENANT OVERVIE W

TENANT SUMMARY

Name The Home Depot, Inc.

Address2455 Paces Ferry Road Northwest

Atlanta, GA, 30339

Phone 770.433.8211

Website www.homedepot.com

Store Count 2,286

NYSE HD

When embarking on household projects, many start their journey at The

Home Depot. As the world’s largest home improvement chain and one of the

largest retailers in the US, the company operates nearly 2,300 stores in North

America. It targets the do-it-yourself (DIY) and professional markets with its

selection of some 40,000 items, including lumber, flooring, plumbing sup-

plies, garden products, tools, paint, and appliances. Home Depot also offers

installation services for carpeting, cabinetry, and other products for its do-it-

for-me (DIFM) customers.

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CLEVELAND HEIGHTS OVERVIEWCleveland Heights, Ohio is a diverse, progressive, vital suburb of Cleveland just up the hill from

University Circle, with its museums, colleges and world-renowned medical facilities - Cleveland

Clinic and University Hospitals - and is a convenient commute to downtown. Well known for

its rich variety of homes, Cleveland Heights has everything from front-porch Colonials and Arts

and Crafts bungalows to stately Tudors, historic mansions and innovative new condos.

You’ll find tree-lined streets, great parks and recreational facilities, authentic “main-

street” shopping, award-winning restaurants, entertainment, theaters and more! There are

many excellent educational opportunities here, including the Cleveland Heights-University

Heights Schools and private and parochial schools that serve our community. The Cleveland

Heights-University Heights Library is second to none!

EXCELLENT INFRASTRUCTURECleveland’s transportation facilities strengthen its position as a leading

center of business, generating access to other large metros nationwide.

DIVERSIFYING ECONOMYEducation and health services is the largest employment sector; manufacturing

also is prominent.

METRO HIGHLIGHTS

REVITALIZING DOWNTOWNCleveland’s downtown is experiencing a metropolitan rebirth as revitalized

buildings attract new businesses, residents and visitors.

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► 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 and TravelCenters of America.

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

ECONOMY

2017 HOUSEHOLDSGROWTH 2017-2022: 2%

2017 POPULATIONGROWTH 2017-2022: 0.9%

2017 MEDIAN AGEU.S. MEDIAN: 37.8

2017 MEDIAN HH INCOMEU.S. MEDIAN: $56,300

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3460 Mayfield Rd

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2.1M 850K 41.2 $51,900

THE HOME DEPOT

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DEMOGR APHIC S

POPULATION 1 MILE 3 MILES 5 MILES

2023 Projection 17,106 139,814 322,445

2018 Estimate 17,398 144,030 334,622

2010 Census 17,652 145,728 339,867

2000 Census 19,824 169,009 410,413

HOUSEHOLDS 1 MILE 3 MILES 5 MILES

2023 Projection 7,326 58,774 138,969

2018 Estimate 7,302 59,843 142,241

2010 Census 7,480 61,219 146,100

2000 Census 7,976 69,283 166,498

RACE & ETHNICITY 1 MILE 3 MILES 5 MILES

White 38.44% 41.82% 33.52%

Native American 0.03% 0.02% 0.01%

African American 53.91% 50.13% 60.51%

Asian/Pacific Islander 3.04% 4.61% 3.05%

HOUSING 1 MILE 3 MILES 5 MILES

2018 $123,476 $134,154 $123,529

INCOME 1 MILE 3 MILES 5 MILES

Average $66,574 $71,707 $64,635

Median $49,141 $45,376 $38,478

Per Capita $27,967 $30,383 $27,919

EMPLOYMENT 1 MILE 3 MILES 5 MILES

2018 Daytime Population 13,266 117,655 334,789

2018 Unemployment 4.26% 5.63% 6.83%

2018 Median Time Traveled 27 25 27

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P R E S E N T E D B Y

ARMOND AIVA Z YANPalo AltoCell 818.632.9542 Office 650.391.1828Email aaivazyan@mmreis.comLicense CA 01954384

THE HOME DEPOT · GROUND LEASECLE VEL AND HEIGHTS, OHIO

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