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CAMBY, IN

Heartland Landing

OFFERING MEMORANDUM

CONFIDENTIALITY AND DISCLAIMER

The 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 Brochure has been prepared to provide summary, unverified information 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 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 information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

CAMBY, IN

Heartland Landing

Marcus & 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 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.

NON-ENDORSEMENT NOTICE

Section 1 PROPERTY DESCRIPTION

Section 2 PRICING AND FINANCIAL ANALYSIS

Section 3 MARKET OVERVIEW

Section 4 DEMOGRAPHIC ANALYSIS

TABLE OF CONTENTS

Heartland LandingCAMBY, IN


PROPERTY DESCRIPTION

Marcus & Millichap is pleased to present Heartland Landing, a 21,683-square foot multi-tenant retail strip center located on the southwest side of Indianapolis, Indiana in a suburb called Camby and is shadow-anchored by Meijer, Menards, and a Wal-Mart Supercenter. The property is located along Indiana State Road 67 and is surrounded by such retailers as Starbucks, Goodwill, McDonald's, Applebee's, Bob Evans, Pizza Hut, and Wendy's, to name a few. The property is part of a business park called Heartland Crossing Business Park and the Heartland Crossing Community, which is anchored by the retailers listed above and houses thousands of residential houses and a beautiful golf course.

Heartland Landing is currently occupied by a strong mix of local and regional tenants that provide a stable, low-risk lease rollover over the next ten years for the investor. The anchor tenant - 24 Hours Fitness Holdings, LLC, d.b.a. Anytime Fitness - one of the largest Anytime Fitness franchisees in the country, recently proactively extended their lease to go out thru 2022, helping to give the owner over 50 percent of the gross leasable area leased up for five years or longer. Additionally, the co-anchor (Verizon franchisee Moorehead Communications) recently executed a new lease and are one of the largest franchisees in the country.

The opportunity for the investor is to acquire a well-located, cash-flowing, stable investment located in the Indianapolis MSA with over 10 percent vacancy upside along with over 50 percent of the GLA secured for five years or better. Paragon Realty has indicated its interest to continue to manage the property should an investor desire. Being shadow-anchored by a Wal-mart Supercenter, Menards, and Meijer and surrounded by such retailers as McDonald's, Starbucks, PNC Bank, and Goodwill as well as thousands of households, Heartland Landing should prove to be an excellent and stable investment for any investor.

Investment Highlights

■ 21,683-Square Foot Multi-Tenant Retail Center inIndianapolis MSA

■ Shadow-Anchored by Meijer, Menards, and Wal-MartSupercenter

■ Surrounded by Such Retailers as McDonald's, Wendy's,Starbucks, Applebee's, and Bob Evans

■ Outparcel to a Major Mixed Use Development IncludingRetail, Office, and Residential Properties

■ Anchored by Recently Extended Anytime Fitness Franchisee- One of the Largest in the Country

■ Over 50 Percent of the GLA Secured for Five Years or More

1



This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 Y0260026Marcus & Millichap. All rights reserved.

INVESTMENT OVERVIEW

The Offering

Property Heartland Landing

Property Address 10302 Prosperity Circle

Camby, IN 46113

Assessor's Parcel Number 32-16-20-353-004.000-011

Site Description

Number of Stories 1

Year Built 2005

Gross Leasable Area (GLA) 21,683 SF

Lot Size 2.57 AC

Type of Ownership Fee Simple

Landscaping Commercial

Topography Flat

Construction

Foundation Concrete Slab

Framing Steel

Exterior Masonry

Parking Surface Asphalt

Roof Rubber Membrane

Mechanical

Utilities Municipal

2




PROPERTY SUMMARY

3




PICTURE PAGE 4

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PICTURE PAGE 4

5




Local Map Regional Map

AREA MAPS

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PRICING AND FINANCIAL ANALYSIS

Price $3,975,000

Down Payment 25% $993,750

Price per Square Foot (GLA) $183.32

Gross Leasable Area (GLA) 21,683

Year Built 2005

Lot Size 2.57 AC

VITAL DATA

CAP Rate - Current 8.25%

Net Operating Income - Current $328,021

Net Cash Flow After Debt Service - Current $126,114

Total Return - Current 19.20% / $190,759

CAP Rate - Pro Forma 9.08%

Net Operating Income - Pro Forma $360,865

Net Cash Flow After Debt Service - Pro Forma $158,958

Total Return - Pro Forma 22.50% / $223,603

8

Major Tenants


Tenant Name

Subway Suite 100

Indy CB Suite 101

Party Station Suite 102

VIP Nails Suite 103

Denning Insurance Suite 104

Moorehead Communications Suite 105

Anytime Fitness Suite 107


Major Employers

CompanyLocal

Employees

Ingram Micro Mobility Inc 4,008

Allison Parts Distribution 1,730

Whirlpool 800

Nice-Pak Products Inc 550

Walmart 500

Lockheed Martin 435

Becton Dickinson and Company 429

Ozburn-Hessey Logistics LLC 388

Dicks Sporting Goods Inc 320

Kendrick Memorial Hospital 319

Con-Way Freight Inc 310

TOA (usa) LLC 292

Demographics


1-Mile 3-Miles 5-Miles

2014 Total

Population

3,176 24,460 48,319

2019 Total

Population

3,848 27,163 53,192

2014 Total

Households

1,181 9,038 17,945

2019 Total

Households

1,455 10,113 20,020

Median HH Income $60,329 $58,362 $59,140

Per Capita Income

(based on Total

Population)

$26,268 $25,702 $26,906

Average (Mean) HH

Income

$70,396 $69,268 $70,795

OFFERING SUMMARY

9



Existing Financing

Loan Type Free and Clear


Proposed Financing

First Trust Deed

Loan Amount $2,981,250

Loan Type Proposed New

Interest Rate 4.65%

Amortization 25 Years

Debt Coverage Ratio 1.62

FINANCING

10



VIP Nails: 7.15% Denning Insurance: 5.09%

Anytime Fitness: 36.93%

Subway: 7.56%Party Station: 8.30%

Indy CB (Dark): 11.07%

Vacant: 11.58%

Verizon Wireless: 12.33%


Current Per SF Pro Forma Per SF

Real Estate Taxes $35,498 $1.64 $39,183 $1.81

Insurance $5,721 $0.26 $6,315 $0.29

CAM

Utilities $16,671 $0.77 $18,402 $0.85

Repairs & Maintenance $30,877 $1.42 $34,082 $1.57

Contract Services $10,000 $0.46 $11,738 $0.54

TOTAL CAM $57,548 $2.65 $64,222 $2.96

Management Fee (% of EGI) $18,223 $0.84 $18,889 $0.87

TOTAL EXPENSES $116,990 $5.40 $128,609 $5.93

Tenants (% OF GLA)

EXPENSES

11




Current Per SF Pro Forma Per SF

Base Rent

Occupied Space $373,758 $17.24 $391,172 $18.04

GROSS POTENTIAL RENT $373,758 $17.24 $391,172 $18.04

Expense Reimbursements

Real Estate Taxes $31,389 $1.45 $34,647 $1.60

Insurance $5,059 $0.23 $5,584 $0.26

CAM $50,886 $2.35 $56,169 $2.59

Management Fee $16,114 $0.74 $17,260 $0.80

Signage $4,200 $0.19 $4,200 $0.19

GROSS POTENTIAL INCOME $481,406 $22.20 $509,032 $23.48

Vacancy/Collection Allowance (% of GPR) 9.7% / $36,395 $1.68 5% / $19,559 $0.90

EFFECTIVE GROSS INCOME $445,011 $20.52 $489,473 $22.57

Total Expenses $116,990 $5.40 $128,609 $5.93

NET OPERATING INCOME $328,021 $15.13 $360,865 $16.64

Gross Leasable Area (GLA) 21,683 SF

INCOME & EXPENSES

12




Suite Tenant GLA % of

GLA

Lease

Commence

Lease

Expire

Annual

Rent

Rent/

SF

Changes

On

Changes

To

Expense

Reimbs.

Other:

Options/

% Rent

Lease

Type

100 Subway 1,639 7.56% May-2006 May-2021 $39,540.00 $24.12 $8,859.00 NNN

101 Indy CB (Dark) 2,400 11.07% April-2013 October-2018 $34,200.00 $14.25 $12,973.00 NNN

102 Party Station 1,800 8.30% September-2016 November-2021 $28,800.00 $16.00 $9,730.00 NNN

103 VIP Nails 1,550 7.15% July-2016 November-2026 $22,088.00 $14.25 $8,379.00 NNN

104 Denning Insurance 1,104 5.09% October-2014 November-2017 $18,878.00 $17.10 $5,967.00 NNN

105 Verizon Wireless 2,673 12.33% September-2006 August-2025 $59,342.00 $22.20 $14,449.00 NNN

106 Vacant 2,510 11.58% $43,925.00 $17.50

107 Anytime Fitness 8,007 36.93% September-2007 December-2022 $134,516.00 $16.80 $43,284.00 NNN

TOTAL VACANT 2,510 11.58% $43,925.00

TOTAL OCCUPIED 19,173 88.42% $337,364.00 $103,641.00

TOTAL 21,683 100.00% $381,289.00 $103,641.00

TENANT SUMMARY

13



For The Year Beginning Year 1

Jan 2017

Year 2

Jan 2018

Year 3

Jan 2019

Year 4

Jan 2020

Year 5

Jan 2021

Year 6

Jan 2022

Year 7

Jan 2023

Year 8

Jan 2024

Year 9

Jan 2025

Year 10

Jan 2026

Tenant(s) Name Denning

Insurance

Indy CB

(Dark)

Subway

Party

Station

Anytime

Fitness

Verizon

Wireless

VIP Nails

Total Number of Tenants 1 1 2 1 1 1

Total Square Feet 1,104 2,400 3,439 8,007 2,673 1,550

Total Percentage 5.1% 11.1% 15.9% 36.9% 12.3% 7.2%

Cumulative Percentage 5.1% 16.2% 32.0% 69.0% 81.3% 88.4%


Percentage of SF Expiring Number of Tenants Expiring Cumulative % of SF Expiring

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

To

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1

2

Nu

mb

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of T

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an

tsJan 2017

5%Jan 2018

11%Jan 2019

0%Jan 2020

0%Jan 2021

16%Jan 2022

37%Jan 2023

0%Jan 2024

0%Jan 2025

12%Jan 2026

7%

LEASE EXPIRATION SUMMARY

Any projections, opinions, assumptions or estimates used here within are for example purposes only and do not represent the current or future performance of the property.

Tenant Name: Anytime Fitness

Lease Commencement: September 2007

Lease Expiration: December 2022

Gross Leasable Area (GLA): 8,007

Original Term: 10 Years

Option Term:

Pro Rata Share of Project: 37%

Headquartered: Woodbury, Minnesota

No. of Locations: Over 3,000

Web Site: www.anytimefitness.com

14




TENANT & LEASE SUMMARY

Tenant Name: Subway

Lease Commencement: May 2006

Lease Expiration: May 2021



Option Term:


Headquartered: Milford, Connecticut

No. of Locations: Over 44,000

Web Site: www.subway.com/en-us

Tenant Name: Moorehead Communications

(Verizon)

Lease Commencement: March 2015

Lease Expiration: August 2025



Option Term:


Headquartered Carmel, Indiana

No. of Locations 263

Website: www.dealer.tccrocks.com

15

10302 Prosperity Circle

Camby, IN 46113

Price $3,975,000

Down Payment 25% $993,750

Gross Leasable Area (GLA) 21,683

Price/SF $183.32

CAP Rate - Current 8.25%

CAP Rate - Pro Forma 9.08%

Lot Size 2.57 AC

Year Built 2005

FIRST TRUST DEED

Loan Amount $2,981,250

Loan Type Proposed New

Interest Rate 4.65%

Amortization 25 Years


Annualized Operating Data


Income Current Pro Forma

Base Rent

Occupied Space $373,758 $391,172

Gross Potential Rent $373,758 $391,172

Expense Reimbursements $107,648 $117,860

Gross Potential Income $481,406 $509,032

Vacancy/Collection Allowance 9.7% / $36,395 5% / $19,559

Effective Gross Income $445,011 $489,473

Total Expenses $116,990 $128,609

Net Operating Income $328,021 $360,865

Debt Service $201,907 $201,907

Debt Coverage Ratio 1.62 1.79

Net Cash Flow After Debt Service 12.69% / $126,114 16.00% / $158,958

Principal Reduction $64,645 $64,645

Total Return 19.20% / $190,759 22.50% / $223,603

Location

Financing


ExpensesReal Estate Taxes $35,498 $39,183

Insurance $5,721 $6,315

CAM

Utilities $16,671 $18,402

Repairs & Maintenance $30,877 $34,082

Contract Services $10,000 $11,738

TOTAL CAM $57,548 $64,222

Management Fee (% of EGI) 4.1% / $18,223 4% / $18,889

TOTAL EXPENSES $116,990 $128,609

EXPENSES/SF $5.40 $5.93

Loan information is time sensitive and subject to

change. Contact your local Marcus & Millichap Capital

Corporation representative.

FINANCIAL OVERVIEW


MARKET OVERVIEW

17

MARKET OVERVIEW


Indianapolis-Carmel-Anderson Metro

Geography

The Indianapolis metro is situated in the Central Till

Plains region of central Indiana and consists of Marion,

Johnson, Hamilton, Boone, Hendricks, Morgan,

Hancock, Shelby and Madison counties. The metro

lacks formidable development barriers, except for the

several rivers and creeks that traverse the region. Marion

County, home to Indianapolis, is surrounded by mainly

rural counties, offering builders ample land for

residential and commercial development. Population

growth is primarily concentrated to the northern

suburbs and west of the city.


INDIANAPOLIS

Market Highlights

Premier distribution hub

■ Around 50 percent of the U.S. population is within

a one-day drive of Indianapolis.

Major health sciences center

■ Eli Lilly & Co., Roche Diagnostics Corp. and

Covance Inc. maintain operations in the region.

Low costs of living and doing business

■ Indianapolis’ costs are far below national averages,

attracting businesses and residents to the area.

18

MARKET OVERVIEW

Largest Cities in Metro by Population


* ForecastSources: Marcus & Millichap Research Services, U.S. CensusBureau, Experian

Metro

The Indianapolis metro is composed of 11 counties, the

largest of which is Marion. The metro’s population is

forecast to increase 5.4 percent over the next five years.

The most populous city in the metro is Indianapolis,

claiming 850,000 residents, followed by Carmel.

Infrastructure

Indianapolis is a trade and transportation center, with

50 percent of the U.S. population within an eight-hour

drive. The metro is often referred to as the “Crossroads

of America” because of the four interstates that converge

in the metro, connected by a beltway around the city.

The area is served by two Class I railroads, CSX and

Norfolk Southern, and four short lines: Indiana

Southern, Indiana Railroad Co., Louisville & Indiana

Rail and Central Railroad of Indiana.

Indianapolis International Airport is located 15 minutes

from downtown. Activity continues to increase at the

airport, which currently supports approximately 7.2

million passengers per year. Other airports in the area

are the Metropolitan Airport, Indianapolis Regional

Airport, Eagle Creek Airpark, Gordon Graham Field

and the Downtown Heliport.

Indianapolis Public Transportation Corp. (IndyGo)

provides bus service throughout the city, while Central

Indiana Commuter Services offers bus service to the

surrounding counties.


Indianapolis 850,000

Carmel 88,200

Fishers 84,400

Anderson 59,000

Noblesville 55,700

Greenwood 53,000

INDIANAPOLIS

Airports

■ Indianapolis International Airport

■ Four general aviation airports

■ Downtown Heliport

Major Roadways

■ Interstates 65, 69, 70, 74 and 465

Rail

■ Freight - CSX, Norfolk Southern, four short-

line railroads

■ Passenger - Amtrak

The Indianapolis Metro is:

■ 180 miles from Chicago

■ 265 miles from Milwaukee

■ 270 miles from Detroit

■ 560 miles from Baltimore

19

MARKET OVERVIEW


* ForecastSources: Marcus & Millichap Research Services, Bureau ofEconomic Analysis, Moody’s Analytics, U.S. Census Bureau,Experian

Economy

Indianapolis underwent an economic renaissance during

the past two decades. The importance of manufacturing

companies lessened as other employment sectors began

to play larger roles.

Local pharmaceutical production facilities have helped

stabilize manufacturing employment despite the sector’s

diminished significance. The metro is one of the key

health-sciences centers in the nation, anchored by

several pharmaceutical and life-sciences companies.

Indianapolis is easily accessible to many major metros by

ground or air, resulting in the trade, transportation and

utilities sector posting phenomenal growth in the past

three decades. The industry has added more than

70,000 positions since 1990 and now accounts for 22

percent of metro area jobs.

Annual GMP in Indianapolis is expected to top 5.2

percent this year, well above the national level. Retail

sales rose 6.3 percent in 2015, higher than the U.S.

average of 2.2 percent. Retail sales growth is expected to

continue over the coming two years at a pace exceeding

6 percent. The concentration of intellectually intensive

firms, low business costs and right-to-work legislation

signal the state’s pro-business stance.


INDIANAPOLIS

20

MARKET OVERVIEW


Labor

After rapid gains in the Indianapolis employment base over the previous five years, the rate of job growth is

expected to slow near 1.6 percent throughout 2020, expanding the number of jobs to more than 1.1 million. The

diversifying economy will redistribute jobs toward some of the metro’s traditionally smaller employment sectors.

As a major transportation and distribution hub, the largest share of Indianapolis jobs belong to the trade,

transportation, and utilities sector. This sector comprises 22 percent of all metro employment. As the economy

shifts away from manufacturing, the area is drawing more major national and global firms to maintain corporate

headquarters and regional facilities in the metro, including Rolls-Royce, Cummins and Simon Property Group. As

a result, the number of workers in the professional and business services sector has grown dramatically, now

comprising 16 percent of total metro employment. This sector will post growth of 3.6 percent in each of the next

five years.

The numerous hospitals and institutions of higher learning help to boost education and health services segment to

14 percent of total employment. Growth in this sector is expected to rise as the baby boom generation ages into

their retirement years, increasing the need for healthcare. Through the next five years, this segment will increase 2

percent annually.

All employment sectors, except government, are expected to grow in each of the next five years. Some of the most

dramatic employment gains will be in construction, where expansion should reach 5 percent annually.


* ForecastSources: Marcus & Millichap Research Services, BLS, Moody’s Analytics

INDIANAPOLIS

21

MARKET OVERVIEW


Major Employers

Employers

Indianapolis offers a diverse employment base. State and

local government entities remain important employers,

but the private industry is creating a multitude of

higher-paying positions. Indianapolis is considered an

intellectual capital due to its concentrations of

healthcare-related companies and post-secondary

educational institutions.

Eli Lilly & Co. maintains its corporate headquarters in

Indianapolis. The metro, which accounts for a sizable

percentage of the company’s workforce, is home to Eli

Lilly’s research laboratories, clinical trials and drug

manufacturing. The aging population and heightened

awareness of health issues are anticipated to improve Eli

Lilly’s position in the marketplace, which will positively

impact Indianapolis over the next several years. Roche

Diagnostics is another major company in the region’s

health research.

Anthem Inc., a national healthcare benefits provider, is

based in Indianapolis, employing thousands of local

workers. Other large healthcare companies include

Indiana University Health and St. Vincent Hospital.

FedEx and Amazon are major employers in the

Indianapolis logistics and distribution industry and

provide thousands of jobs to the region. FedEx’s second-

largest hub in the world is located at Indianapolis

International Airport.

* ForecastSources: Marcus & Millichap Research Services, BLS, Moody’sAnalytics, Experian


Eli Lilly & Co.

Indiana University Health

Rolls-Royce Corp.

Community Health

Marsh Supermarkets

Kroger

IUPUI

FedEx

Roche Diagnostics

INDIANAPOLIS

22

MARKET OVERVIEW


Demographics

Population growth in Indianapolis will continue to

outpace the national rate of expansion over the next five

years. During the span, the population will reach more

than 2 million residents, increasing by more than

106,000 residents.

The Indianapolis metro has a relatively young

population, with a median age of 36.1 years old,

compared with the U.S. median of 37.5 years old. The

presence of several universities and colleges, along with a

diverse economic base, lures a young workforce. The

segment of population between 20 to 24 years old

currently makes up 6.4 percent of the population.

Metro residents have a higher educational attainment

level than the U.S. average. Roughly 30 percent of

individuals over the age of 25 have earned at least a

bachelor’s degree, with 10.4 percent also holding a

graduate degree. Higher education levels often translate

into higher incomes. The median income in the metro

at $56,100 is slightly above the national median.

The median home price in Indianapolis, at $154,800, is

below the U.S. median. In the next five years, rising

household income will slightly surpass the increase in

housing prices, making homeownership attainable for

more households. Currently, 66.1 percent of households

own their homes.

* ForecastSources: Marcus & Millichap Research Services, AGS, Experian,Moody’s Analytics, U.S. Census Bureau


INDIANAPOLIS

23

MARKET OVERVIEW


The information contained in the market overview comes from sources deemed to be reliable, however, no representation, warranty or guarantee, express or implied, may be made as to the accuracy or reliability of the information contained herein. The most timely data available at time of production, including estimates and forecasts, were used and may be subject to revision.

Quality of Life

Indianapolis offers residents many big-city amenities in

an affordable, small-town atmosphere. The city is home

to several high-profile auto races, including the

Indianapolis 500 and Brickyard 400. Races are hosted at

the Indianapolis Motor Speedway and the Lucas Oil

Raceway at Indianapolis.

The metro has two major league sports teams: the

Indianapolis Colts (NFL) and the Indiana Pacers

(NBA). The area also has a vibrant cultural and arts

scene, with more than 200 art galleries and dealers, the

Indianapolis Symphony Orchestra and a variety

museums, including the Eiteljorg Museum of American

Indians and Western Art. Additionally, the Children’s

Museum of Indianapolis is one of the largest children’s

museums in the world.

Outdoor recreational activities abound. White River

State Park in central Indianapolis is home to a

multitude of cultural institutions, including the

Indianapolis Zoo, and numerous trails and paths to

hike, bike or skate. The city is only 90 miles from Paoli

Peaks, where visitors can partake in wintertime sports.

Golf aficionados can enjoy the dozens of 18-hole golf

courses located in the region.

* ForecastSources: Marcus & Millichap Research Services, NationalAssociation of Realtors, Moody’s Analytics, U.S. Census Bureau


INDIANAPOLIS

24

MARKET OVERVIEW


Stream of Investors Seek Higher Cash Flows in Indianapolis Retail Assets

Steady employment growth is drawing job seekers to the metro, supporting Indianapolis’ retail sector. Strong

hiring has dropped the unemployment rate below 5 percent, attracting new residents with more than 10,500

additional households expected in 2016. This growth coupled with rising incomes will drive retail sales up,

benefiting existing stores as well as luring new ones. In Fishers, Ikea will begin construction of its first store in the

state and in Greenwood, work is slated to begin on the first buildings in the 700,000-square-foot Greenwood

Town Center. Both projects have 2017 openings scheduled. Throughout the metro, inline retailers of some

shopping centers anchored by Kroger or Marsh should benefit as these companies remodel stores in an effort to

retain market share. This year, Giant Eagle, Wal-Mart and Save-A-Lot join the list of grocers adding locations.

Sizable tenant demand will contribute to overall vacancy tightening to the lowest rate in more than 10 years,

pushing rents above the 2008 peak.

The metro’s stability and the potential for higher cash flows are drawing investors from the coasts and other asset

classes to retail properties. Buildings in Plainfield, Noblesville or Carmel will especially be desired for their strong

population gains or desirable retail demographics. Buyers are getting more aggressive, particularly for net-leased

single-tenant assets, at cap rates that are generally in the 5 to 6 percent range. Grocery-anchored centers are also in

demand and will receive multiple offers at initial yields in the 7 percent span. As competition for the limited

supply of quality assets intensifies, buyers will broaden their investment parameters and move down the quality

scale or into secondary areas. Value-add investors can still find double-digit yields in redeveloping neighborhoods

like Speedway. As investor interest and valuations rise, more owners will re-evaluate holdings, which may provide

additional buying opportunities this year.


* Forecast

INDIANAPOLIS

25

MARKET OVERVIEW


2016 Market Forecast


* ForecastSources: CoStar Group, Inc.; Real Capital Analytics

NRI Rank39, up 2 places

Employmentup 2.4%

Construction700,000 sq. ft.

Vacancydown 50 bps

Rentup 1.7%

Investment

Indianapolis moved up two places amid strengthening demand and low supply-sidepressure.

During 2016, Indianapolis employers will create 25,000 positions, a 2.4 percent gain. Thisfollows a 2.7 percent increase last year.

Construction activity will dip slightly this year as builders complete 700,000 square feet, a0.7 percent expansion in stock. Last year 800,000 square feet was delivered.

A slower development pipeline amid stronger tenant demand will lower vacancy 50 basispoints to 6.4 percent in 2016. A 10-basis-point drop was recorded in 2015.

In 2015, rent jumped 4.2 percent to the highest level in more than seven years. Lessavailable space will push rent even higher this year as the average asking rent climbs 1.7percent to $14.49 per square foot.

Redeveloping urban neighborhoods such as Broad Ripple in Indianapolis are attractingmixed-use developments that will boost surrounding property valuations and providevalue-add opportunities nearby.

INDIANAPOLIS


DEMOGRAPHIC ANALYSIS

1 Mile 3 Miles 5 Miles

2000 Population 2,318 16,635 36,220

2010 Population 3,053 23,840 46,830

2014 Population 3,176 24,460 48,319

2019 Population 3,848 27,163 53,192

2000 Households 867 6,233 13,262

2010 Households 1,134 8,804 17,385

2014 Households 1,181 9,038 17,945

2019 Households 1,455 10,113 20,020

2014 Average Household Size 2.74 2.71 2.68

2014 Daytime Population 1,354 7,443 23,717

2000 Owner Occupied Housing Units 73.74% 76.67% 75.80%

2000 Renter Occupied Housing Units 19.37% 18.44% 18.70%

2000 Vacant 6.88% 4.88% 5.50%



2014 Vacant 5.03% 4.40% 4.39%



2019 Vacant 4.94% 4.38% 4.33%

$ 0 - $14,999 7.9% 7.5% 7.3%

$ 15,000 - $24,999 6.3% 8.8% 8.7%

$ 25,000 - $34,999 10.6% 12.0% 11.3%

$ 35,000 - $49,999 14.0% 13.4% 14.1%

$ 50,000 - $74,999 25.7% 24.4% 23.1%

$ 75,000 - $99,999 15.7% 15.0% 15.4%

$100,000 - $124,999 9.1% 9.2% 10.2%

$125,000 - $149,999 5.0% 5.3% 5.2%

$150,000 - $199,999 4.0% 2.5% 2.7%

$200,000 - $249,999 1.0% 0.7% 1.0%

$250,000 + 0.8% 1.1% 1.1%

2014 Median Household Income $60,329 $58,362 $59,140

2014 Per Capita Income $26,268 $25,702 $26,906

2014 Average Household Income $70,396 $69,268 $70,795

Demographic data © 2012 by Experian.

27




DEMOGRAPHIC REPORT

Geography: 5 miles

Population

In 2014, the population in your selected geography is 48,318. The population has changed by 33.40% since 2000. It is estimated

that the population in your area will be 53,191 five years from now, which represents a change of 10.08% from the current year. The

current population is 50.18% male and 49.81% female. The median age of the population in your area is 36.2, compare this to the

Entire US average which is 37.3. The population density in your area is 614.35 people per square mile.

Households

There are currently 17,944 households in your selected geography. The number of households has changed by 35.31% since 2000.

It is estimated that the number of households in your area will be 20,020 five years from now, which represents a change of 11.56%

from the current year. The average household size in your area is 2.67 persons.

Income

In 2014, the median household income for your selected geography is $59,139, compare this to the Entire US average which is

currently $51,972. The median household income for your area has changed by 11.85% since 2000. It is estimated that the median

household income in your area will be $65,029 five years from now, which represents a change of 9.95% from the current year.

The current year per capita income in your area is $26,905, compare this to the Entire US average, which is $28,599. The current

year average household income in your area is $70,795, compare this to the Entire US average which is $74,533.

Race & Ethnicity

The current year racial makeup of your selected area is as follows: 92.24% White, 3.56% Black, 0.01% Native American and 1.15%

Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and

5.02% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 3.14% of the current year

population in your selected area. Compare this to the Entire US average of 17.13%.

Housing

In 2000, there were 10,637 owner occupied housing units in your area and there were 2,624 renter occupied housing units in your

area. The median rent at the time was $544.

Employment

In 2014, there are 23,716 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed

that 55.79% of employees are employed in white-collar occupations in this geography, and 44.48% are employed in blue-collar

occupations. In 2014, unemployment in this area is 6.62%. In 2000, the average time traveled to work was 26.1 minutes.

Demographic data © 2012 by Experian.

28




SUMMARY REPORT

CAMBY, IN

OFFERING MEMORANDUM

Heartland Landing

Offices Throughout the U.S and Canada

www.MarcusMillichap.com

Exclusively Listed By:

Joseph DiSalvoVice President Investments

Indianapolis OfficeLicense: IN: RB14051407

Tel: (317) 218-5334Fax: (317) 218-5310

[email protected]/JosephDiSalvo

Jordan KlinkFirst Vice President Investments

Senior Director, National Retail GroupIndianapolis Office

License: IN: AB21401453License: IN: RB14043752

Tel: (317) 218-5316Fax: (317) 218-5310

[email protected]/JordanKlink

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