New 20-Year NNN Lease | Industry Dominating Tenant | Corporately Guaranteed by National Veterinary Associates (NVA)12533 Warwick Boulevard, Newport News, VA

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Actual Rendering

Presented ByLead AgentKevin Boeve

Senior Vice President InvestmentsONTARIO OFFICE

Tel: (909) 456-3450kevin.boeve@marcusmillichap.com

CA License: 01247016

Kyle BlattAssociate

ONTARIO OFFICETel: (909) 456-3475

kyle.blatt@marcusmillichap.comCA License: 02017976

Capital Markets RepresentativeFarhan Kabani

Senior Vice President Capital MarketsDALLAS OFFICE

Tel: (972) 755-5301farhan.kabani@ipausa.com

Broker of RecordBryn MerreyVIRGINA OFFICE

Broker, Lic.# 0225215804P: 0273750

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, assumptions 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. © 2017 Marcus & Millichap ACT ID Z0080382

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pricingProperty Name PetsuitesProperty Address 12533 Warwick Boulevard

Newport News, VAPrice $5,820,000Cap Rate 6.00%Net Operating Income $349,054Gross Leasable Area 14,000 SFYear Built 2019Approximate Lot Size 1.12 Acres

tenant summaryTenant Trade Name Petsuites of AmericaLease Commencement 2019Lease Expiration 2039Option Term Five, Five-Year OptionsGuarantee Corporate Guarantee (National Veterinary Associates, Inc.Lease Type Triple-Net (NNN)Increases Cumulative CPI Increases Capped at 10 Percent Every Five YearsLandlord Responsibilities NoneLease Term Remaining 20 Years Remaining

Notes: Other loan options are based on buyer parameters available.

Contact:Farhan KabaniSenior Vice President Vice Capital InvestmentsDallas OfficeTel: (972) 755-5301farhan.kabani@ipausa.com

financial overview

rent scheduleYear Rent Amount/Year Rent Amount/Month % IncreaseYear 1 - 5 $349,054 $29,088Year 6 - 10 $383,959 $31,997 CPI Capped at 10%Year 11 - 15 $422,355 $35,196 CPI Capped at 10%Year 16 - 20 $464,591 $38,716 CPI Capped at 10%Option 1: Year 21 - 25 $511,050 $42,588 CPI Capped at 10%Option 2: Year 26 - 30 $562,155 $46,846 CPI Capped at 10%Option 3: Year 31 - 35 $618,370 $51,531 CPI Capped at 10%Option 4: Year 36 - 40 $680,208 $56,684 CPI Capped at 10%Option 5: Year 41 - 45 $748,228 $62,352 CPI Capped at 10%Net Operating Income $349,054

loan options70% LTVApproximate Loan Amount $3,759,000Approximate Equity Required $1,611,000

Fixed Rates Cash Flow5-Year 5% $86,360 (5.3%)7-Year 5.25% $78,750 (4.89%)10-Year 5.5% $72,050 (4.47%)

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, assumptions 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. © 2017 Marcus & Millichap ACT ID Z0080382

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Petsuites operates pet boarding, daycare, and grooming facilities in the United States. Nothing compares to home-sweet-home, and that’s true too for your four legged friends! But when they’re staying at PetSuites, the professional and loving staff will treat them as if they were family, working with you to create a customizable experience that will make them feel right at home!• Cleanest, Spacious Rooms in the Industry• Specially Designed Heating and Air Conditioning Sytems That Ensure a Comfortable and

Healthy Environment for the Pets• Large Outdoor Play Areas Available 365 Days a Year• Grooming and Bathing Seven Days a Week

petsuites of americaTenant Petsuites of AmericaFounded 1999Locations 22Headquarters Erlanger, KentuckyGuarantor National Veterinary Associates, Inc.Website petsuitesofamerica.com

national veterinary associates, inc.Founded 1998Locations 500+ LocationsAreas Served United States (41 States)and Four CountriesHeadquarters Agoura Hills, CaliforniaWebsite nva.com

NVA is affiliated with more than 1,800 veterinarians who care for more than 5 million patients a year.

1996Founded by Dr. Stan Creighton

2007$128 Million Investment by Summit Partners ( Industry

Leading Private Equity Firm) 2014Approximately $700 Million Investment by ARES Partners (Industry Leading Private Equity Firm)2017

Approximately $930 Million Investment by OMERS

(Ontario Employees Pension Fund) 2018

Plans to Open 20 New State-of-the-Art Industry Leading Facilities

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, assumptions 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. © 2017 Marcus & Millichap ACT ID Z0080382

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• $63-Billion Industry • $11 Billion Spent on “High-End” Pet Pampering in 2017• 68% of US Households Own a Pet | 42% Own More Than One Pet• 75% of Millennials Have Dogs | 51% Have Cats• 76% of Millennials Said to “Splurge” on Pets Before Themselves• 70% of Baby Boomers Have a Dog | 80% State They Would

Purchase Another

pet industry talking points

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240

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Number of Pets (Cats and Dogs) in the United States

Mill

ion

Year08 10 12 14 16 18 20

• 84.6 Million Households Own a Pet• 89 Million Dogs in the United States• 78 Million Cats in the United States

• “Pet Lovers” Dominate the United States Population | Baby Boomers and Millennials Are the Largest Population Block in the United States and Own the Most Pets

In The News• One of the Nation’s Largest Home Builders’ “Pet Rooms,”

a Choice in Many of Our New Developments• Millennials Obsessed With Pets• Colleges Embracing Pets on Campus and Student

Housing• How Much Are Millennials Really Spending on Pets

CLICK TO VIEW ARTICLES

First-Mover Investment Opportunity to Add Defensive Diversity to Any Portfolio | Very Few New Net- Leased, Pet-Industry Investments Offered Each Year

Brand New 20-Year Lease | Zero Landlord Responsibilities

Exploding Industry | Recession-Resistant Tenant

Highly Defensible and Diversified Tenant | Multiple Product Lines, Veterinary, Boarding, Daycare, Grooming, Retail | Operating in 4 Countries, 41 States | 500+ Loacations | 40 Years of Combined Industry Experience

Strong Demographics | Population of Over 151,650 and 77,500 Daytime Employees Within a Five-Mile Radius

Located on Warwick Boulevard which Benefits from Traffic Counts of 35,000 Cars Per Day

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demographics

investment highlights

SUBJECT PROPERTY

Industry Leading Executive Team Behind Petsuites and NVA

Multiple Financing Options

Brand New State-of-the-Art Facility

1 Mile 3 Miles 5 Miles2018 Population 15,657 72,307 151,6822018 Households 5,809 29,241 59,6312018 Daytime Employees 11,268 50,450 77,5692018 Average Household Income $54,390 $60,198 $63,208

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, assumptions 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. © 2017 Marcus & Millichap ACT ID Z0080382

Warwick Boulevard - 35,000 Cars Per Day

Christopher NewportUNIVERSITYNumber of Students: 5,100+Number of Faculty: 274

6This 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, assumptions 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. © 2017 Marcus & Millichap ACT ID Z0080382

elevations

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constructionExpected to Open July 2019

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, assumptions 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. © 2017 Marcus & Millichap ACT ID Z0080382

Warwick Boulevard - 35,000 Cars Per Day

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, assumptions 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. © 2017 Marcus & Millichap ACT ID Z0080382

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SUBJECT PROPERTY

Newport News/ Williamsburg

irportAnnual Takeoffs: 199,100Annual Passengers: 453Employees: 416Economic Impact: $205 Million

LangleyAIR FORCE BASESize: 3,152 AcresNumber of Employees: 20,000+Organizations: 60+

Newport NewsSHIPBUILDINGLargest Industrial Employer in Virginia- Looking to hire 7,000 new employees in 5 yearsSize: 550+ AcresNumber of Employees: 38,000

CopelandINDUSTRIAL PARK- Liebheer to Invest $45 Million to Expand by 251,000 SFFerguson

PLUMBING SUPPLY- $82 Million Investment for 260,000 SF Expansion- Will Create 434 New Jobs

Confidentiality AgreementThe information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap.

This offering memorandum has been prepared to provide summary, unverified financial and physical 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, PCBs or asbestos, the compliance with local, 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 offering memorandum 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. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

Net-Leased DisclaimerMarcus & 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 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 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 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 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 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 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.