Dog Haus|7616 Walton St, Rockford, IL 61108

Offering Memorandum

$3,999,999 | Investment Details New 2017 Construction 20 Year True NNN Lease to Commence Upon Certificate of

Occupancy Annual Escalations to Hedge Against Inflation Nestled Between Hilton Garden Inn and the Radisson Hotels Located Across From a Marriott, Holiday Inn, and Residence Inn all

Adding to Foot Traffic Over 30,000 Vehicles Pass In Front of Site Daily Surrounded by National Retailers Such as Denny’s, McDonald’s,

Panda Express, Red Robin, Walmart, Lowe’s, Home Depot, Sam’s Club, and Much More

File Photo

TENANT OVERVIEW

Tenant Trade Name – Dog Haus

Ownership – Private

Lease Guarantor – Personal & Franchise

No Of Locations – 25 +/- (300 More Stores

Scheduled to open Over Next Seven Years)

Headquarters – Pasadena, CA

Website – www.doghaus.com

For more information about Dog Haus,click here

Founded by partners Hagop Giragossian, Quasim Riaz and Andre Vener, three friends who sharea passion for creativity, quality and commitment to community, the first Dog Haus opened inPasadena, California in 2010. Although Dog Haus only contains twenty five active properties,there has been big news to expand the franchise. In October of 2016 Dog Haus announced adevelopment agreement with American Development Partners which will include theconstruction of over 300 new Dog Haus franchise locations in 12 states over the next sevenyears, making it one of the fastest growing (QSR) food concepts in the United States (See articleto the right). The new locations are slated to be constructed on land primarily purchased for“built to suit” and stand-alone Dog Haus Biergarten concepts, and will be operated by veteranfranchisees with extensive multi-unit and multi-brand experience. The deal – which is AmericanDevelopment Partners’ biggest commitment to date – has a projected real estate, constructionand design investment value of over $500 million.

TENANT INFOIN THE NEWS – Press Release

October 18, 2016

Dog Haus Announces Massive National Franchise Development Deal

Pasadena, CA (Restaurantnews.com) Dog Haus, Pasadena, CAbased gourmet hot dog, sausage and burger concept, hasannounced a development agreement with AmericanDevelopment Partners which will include the construction ofover 300 new Dog Haus franchise locations in 12 states over thenext 7 years, making it one of the fastest growing food conceptsin the United State. The new locations are slated to beconstructed on land primarily purchased for “built to suit” andstand alone Dog Haus Biergarten concepts, and will be operatedby veteran franchisees with extensive multi-unit and multi-brand experience. The deal – which is American DevelopmentPartners’ biggest commitment to date – has a projected realestate, construction and design investment value of over $500million.

Dog Haus currently has 21 stores open in five states (AZ, CA, CO,NV, UT) which will nor grow to 19 states across the country withstores set to open in AL, FL, GA, IL, KY, LA, MD, MI, OH, NY, PA,TX, TN and WY. With this deal, the total number of Dog Hauslocations across the country including previous franchisees sold,will now total over 450 locations with 10 out of 19 states – 20%of the country – now sold out.

Rendering new locations – NOT subject property

PRESS RELEASES

•MORNING BRIEFINGDog Haus Becomes First Outside Tenant to Plant a Restaurant Inside the Rose Bowlby Farley Elliott Aug 31, 2017, 9:10am PDT

C L I C K H E R E T O R E A D F U L L A R T I C L E

Dog Haus Stays Home

With all the renewed attention on Pasadena’s famed Rose Bowl lately (thanks to the return of the NFL, the Arroyo Seco music festival, and the coming Olympics) it only makes sense that the 95-year-old property would be considering a few cosmetic upgrades. Among them is a growing focus on the food and beverage side of things, from one-off events to game day mainstays. That’s where the Dog Haus team comes in.

TENANT INFO

Rendering new locations – NOT subject property

CURRENT LOCATIONS

Overview

Price $3,999,999

Gross Leasable Area 4,843 SF

Lot Size 1.59 Acres

Net Operating Income $270,000

CAP Rate 6.75%

Year Built 1stQ2018

Lease Abstract

Lease Type NNN

Lease Term 20 Years

Lease Start Scheduled to Open 1stQ 2018

Renewal Options 3 Five-Year Options

Increases 2% Annual Escalations

Roof and Structure Tenant Responsible

THE OFFERINGAnnualized Operating Data

Lease Term Annual Rent

Year 1 $270,000

Year 2 $275,400

Year 3 $280,908

Year 4 $286,526

Year 5 $292,256

Year 6 $298,101

Year 7 $304,063

Year 8 $310,144

Year 9 $316,347

Year 10 $322,674

Year 11 $329,128

Year 12 $335,710

Year 13 $342,425

Year 14 $349,273

Year 15 $356,259

Year 16 $363,384

Year 17 $370,651

Year 18 $378,064

Year 19 $385,626

Year 20 $393,338

1200% Growth by 2024

$500 million Expanded Franchise Agreement

300+/-

Locations by 2024

Population 1-Mile 3-Mile 5-Mile

2011 3,726 33,272 105,647

2016 3,994 32,625 104,605

2021 4,216 33,863 107,842

2016 Household Incomes

1-Mile 3-Mile 5-Mile

Average $82,813 $88,808 $77,419

Median $66,692 $63,194 $55,004

Rockford, IllinoisRockford is the third largest city in the U.S. state of Illinois, the 171st most populous city inthe United States, the largest city in Illinois outside of the Chicago metropolitan area, andthe city of the 148th most populous metropolitan area in the United States. It is the countyseat of Winnebago County and is located on both banks of the Rock River in far northernIllinois. Rockford was strategically positioned between Chicago and Galena and thusbecame suitable for industrial development. Rockford was notable for its output of heavymachinery and tools; by the twentieth century, it was the second leading center of furnituremanufacturing in the nation, and 94th largest city.

The Dog Haus Property is nestled between Hilton Garden Inn and the Radisson Hotels andacross the street from a Marriott, Holiday Inn and a Residence Inn. Beyond these hotels arethe following national retailers: Steak n Shake, Fast Mart Gas Station, Texas Road house,Denny’s UPS Store, and a Starbucks. The largest center is a Super Walmart anchored centerthat is also home to Sam’s Club, McDonald’s, Panda Express, Red Robin, and Ashley HomeFurnishings. Across from the Walmart Center is a Lowe’s Home Improvement Center and aChick-fil-A. Adjacent to the Lowe’s is a Home Depot, Ihop, Best Buy, Ross Dress for Less, andTarget. Due to all the retail in the surrounding area, traffic counts in front of the site arevery high, reaching over 30,000 cars passing daily in front of the site.

$77,4195-mile radius average HH Income

104,6055-mile radius population

41,7835-mile radius number of households

Rockford, Illinois

Lior RegenstreifSenior Managing Director InvestmentsSenior Director, Net Leased Properties Group

Dog Haus|7616 Walton St, Rockford, IL 61108

Presented By

Tel: (818) 212-2730 / Fax: (818) 212-2710 lior.regenstreif@marcusmillichap.comLicense: CA #01267761