POPEYES GROUND LEASE Freddy’s Frozen Custard...AERIA PT POPEYES GROUND LEASE POPEYES GROUND LEASE 135 St. James Avenue Goose Creek (Charleston MSA), SC 29445 FINANCIAL SUMMARY Price

Freddy’s Frozen CustardLakewood, CO

REPRESENTATICE

POPEYES GROUND LEASE135 ST. JAMES AVENUEGOOSE CREEK (CHARLESTON MSA), SC 29445

Offering Memorandum

AERIAL PHOTO POPEYES GROUND LEASE

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. © 2013 Marcus & Millichap ACT ID Z0070624


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3,700 STUDENTS

NORTHWOODS MALL

COASTAL CAROLINAFLEA MARKET

NAVAL NUCLEAR POWER TRAINING

COMMAND

MCDONALD’SBURGERK ING

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POPEYES GROUND LEASE



WESTVIEW PRIMARY SCHOOL

690 STUDENTS

WESTVIEW ELEMENTARY SCHOOL

560 STUDENTS

WESTVIEW MIDDLE SCHOOL

840 STUDENTS

ST. JAMES AVE38,700 CPD




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MCDONALD’SBURGERK ING

ST. JAMES AVE38,700 CPD

GOOSE CREEK BLVD35,700 CPD


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POPEYES GROUND LEASE135 St. James AvenueGoose Creek (Charleston MSA), SC 29445

FINANCIAL SUMMARY

Price $1,448,000

Down Payment 100% $1,448,000

Cap Rate 5.40%

Building SF 2,268 SF

Net Cash Flow 5.40% $78,280*

Year Built 2018

Lot Size 1.15 Acres

LEASE SUMMARY

Lease Type Triple-Net (NNN) Ground Lease

Tenant RRG, Inc. dba Popeye’s Louisiana Chicken

Guarantor Franchisee

Roof & Structure Tenant Responsible

Lease Commencement Date May 1, 2018

Lease Expiration Date April 30, 2028

Lease Term 10 Years

Rental Increases 3% Annually

Renewal Options 2, 5 Year Options

EXECUTIVE SUMMARY

BASE RENT $78,280

Net Operating Income $78,280

Total Return 5.40% $78,280

ANNUALIZED OPERATING DATA

LEASE YEARS ANNUAL RENT CAP RATE

5/1/2019 - 4/30/2020 $78,280.00 5.40%

5/1/2020 - 4/30/2021 $80,628.40 5.57%

5/1/2021 - 4/30/2022 $83,047.25 5.74%

5/1/2022 - 4/30/2023 $85,538.67 5.91%

5/1/2023 - 4/30/2024 $88,104.83 6.08%

5/1/2024 - 4/30/2025 $90,747.97 6.27%

5/1/2025 - 4/30/2026 $93,470.41 6.46%

5/1/2026 - 4/30/2027 $96,274.53 6.65%

5/1/2027 - 4/30/2028 $99,162.76 6.85%

OPTIONS ANNUAL RENT CAP RATE

Option 1

Year 11 $102,137.64 7.05%

Year 12 $105,201.77 7.27%

Year 13 $108,357.83 7.48%

Year 14 $111,608.56 7.71%

Year 15 $114,956.82 7.94%

Option 2

Year 16 $118,405.52 8.18%

Year 17 $121,957.69 8.42%

Year 18 $125,616.42 8.68%

Year 19 $129,384.91 8.94%

Year 20 $133,266.46 9.20%* Pricing based off May 1, 2019 rental increase




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TENANT OVERVIEW

Popeyes is an American multinational chain of fried chicken fast food restaurants founded in 1972 in New Orleans, Louisiana. Be-fore it took on its current name of Popeyes Louisiana Kitchen, Inc. in 2008, the company was named Popeyes Chicken & Biscuits and Popeyes Famous Fried Chicken & Biscuits.

There are over 2,600 Popeyes restaurants in more than 40 U.S. states and the District of Columbia, Puerto Rico, and 30 countries worldwide. A majority of the restaurants are operated by franchis-es, with 30 company-owned locations.

www.popeyes.com

FRANCHISEE OVERVIEW: RRG, INC.

RRG, Inc.’s founder, Mark Rinna, began working with Popeyes in 1993. Rinna had previous experience in the restaurant industry, immediately attending Arby’s management training program after graduating college. He remained with Arby’s for 15 years and spent four years with Taco Bell. Following that, he joined AFC Enterprises, first as Popeyes Brand General Manager and then as President. In 2000, Popeyes offered Rinna the opportunity to become a fran-chisee of the brand he had helped build. Today, he and his wife, Jane, own RRG, Inc. Together, they operate 12 Popeyes locations in Georgia and South Carolina. He is also the President of the Popeyes International Franchisee Association (PIFA) and has served on sev-eral PIFA committees over the years.

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LOCATION OVERVIEWINVESTMENT HIGHLIGHTSNorth of Charleston in Berkeley County sits the municipality that Business Week called the best place to raise a family in South Carolina. Goose Creek is ideally located, minutes from Charleston and South Carolina’s coast. It is centrally located, with the state’s Boeing plant to the south and Volvo’s automotive plant to the north, both of which have turned the region into a hotbed of industrial growth.

Charleston is the oldest and largest city in South Carolina and is the county seat of Charleston County. Known for its rich history, well-preserved architecture and distinguished restaurants, Charleston is a popular tourist destination. The city has received numerous accolades, including “America’s Most Friendly City” and “World’s Best City.”

A major driver for the city’s economy is its booming tourism industry. This is boosted by the city’s considerable number of historical buildings, luxury hotels, and restaurants. Higher education is also an important sector in the local economy, occupied by many institutions such as the Medical University of South Carolina, College of Charleston, The Citadel, The Military College of South Carolina and Charleston School of Law among others. The region’s economy is currently growing at a faster rate than any other metro in South Carolina. The biggest growth sector in the Charleston region in recent years has been professional and business services, which includes job categories such as lawyers, accountants, engineers, etc.

Charleston offers many opportunities for visitors to become fully immersed in the city’s culture. Home to endless galleries, historic theaters and high-energy festivals, Charleston has a vibrant arts scene. The city also has many historical attractions for visitors to tour, including important sites from the Civil War, museums, and boat tours.

• New 10-Year Triple-Net (NNN) Ground Lease

• Brand New 2018 Construction

• Three Percent Annual Increases

• 120,225 Residents in Growing Goose Creek Trade Area – Charleston MSA

• Franchisee Operates 12 Popeyes Locations Throughout Georgia and South Carolina

• Excellent Visibility – 38,700+ Cars per Day Along St. James Avenue

• Minutes to Charleston Southern University (3,700 Enrolled)

• Walking Distance from 3 Schools – 2,090+ Total Students

• 4 Miles North of Northwoods Mall, a Main Shopping Center for the Region with 130+ Stores

• 103,038 Daytime Employees in 5-Mile Radius

PROPERTY DESCRIPTION

Income 1-Mile 3-Miles 5-Miles

2017 Est. Average Household Income $63,722 $66,874 $63,841

2017 Est. Median Household Income $57,531 $58,064 $54,485

2017 Est. Per Capita Income $24,795 $24,660 $23,429

Population 1-Mile 3-Miles 5-Miles

2022 Projection 7,775 68,739 131,261

2017 Estimate 7,588 61,750 120,225

Growth 2017 - 2022 2.46% 11.32% 9.18%

Households 1-Mile 3-Miles 5-Miles

2022 Projections 3,090 25,717 48,727

2017 Estimate 2,953 22,552 43,605

Growth 2017 - 2022 4.65% 14.03% 11.74%

DEMOGRAPHICS




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PROPERTY PHOTOS

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REGIONAL MAP REGIONAL MAP

Williams-Sonoma

MAP

4 MILESCharleston Southern

University

12 MILESCharleston

International Airport

19 MILESDowntownCharleston

21 MILESFort Sumter

National Monument

The 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.

Confidentiality Agreement

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

By accepting this Marketing Brochure, you agree to treat the information contained herein regarding the lease terms as confidential and proprietary and to only use such information to evaluate a potential purchase of this net leased property.

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 mat-ters. 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 oth-er 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 as well as the Property Owner and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase

Net Leased Disclaimer

exclusively listedJAMIE MEDRESSExecutive Managing DirectorPHOENIX OFFICETel: (602) 687-6778Fax: (602) [email protected]

MARK RUBLESenior Managing DirectorPHOENIX OFFICETel: (602) 687-6766Fax: (602) [email protected]

Exclusively listed by:

OFFICES NATIONWIDEwww.marcusmillichap.com

ALEX FRANKELAssociate AdvisorCOLUMBUS OFFICETel: (614) 360-9061Fax: (614) [email protected]

BEN YELMBroker of RecordCHARLESTON OFFICELicense: 86628

Documents

POPEYES GROUND LEASE Freddy’s Frozen Custard...AERIA PT POPEYES GROUND LEASE POPEYES GROUND LEASE 135 St. James Avenue Goose Creek (Charleston MSA), SC 29445 FINANCIAL SUMMARY Price