APPLEBEE S AT REGENCY MALL 2521 S GREEN BAY RD, RACINE, WI OFFERING MEMORANDUM

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1 APPLEBEE S AT REGENCY MALL 2521 S GREEN BAY RD, RACINE, WI OFFERING MEMORANDUM

2 CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Applebee s located at 2521 S Green Bay Rd, Racine, WI ( Property ). It has been prepared by Matthews Retail Advisors. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Retail Advisors. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completweness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Retail Advisors expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Retail Advisors or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

3 APPLEBEE S 2521 S GREEN BAY RD RACINE, WI TABLE OF CONTENTS 04. Executive Summary 06. Property Overview 12. Tenant Overview 14. Area Overview 16. Demographics Chuck Evans Associate License No O M chuck.evans@matthews.com Kyle B. Matthews, CCIM Chairman & CEO License No O M kyle.matthews@matthews.com Beau Beach Broker of Record License No

4 EXECUTIVE SUMMARY Investment Highlights EXCELLENT CORPORATE TENANT Ground lease (fee simple ownership) with a subsidiary of Wisconsin Hospitality Group, an Applebee s franchisee with more than 100 locations in the Midwest Applebee s has been operating successfully at this location since 1995, with Three (3) years remaining on its lease, and Two (2), Five (5) year options with ten percent (10%) increases in each Sales for Applebee s are at an outstanding $485 PSF with the tenant paying $110,000 in percentage rent Total occupancy cost is at a healthy 5.25% Applebee s has successfully operated at the center since 1995 INCREDIBLE RETAIL SYNERGY Mall outparcel Applebee s is located as an outparcel to the 800,000 SF Regency Mall in Racine, WI Strong Retail Synergy Applebee s benefits from a strong collection of national tenants including Target, Boston Store, Ross Dress For Less, Burlington Coat Factory, Dunham s Sports, Pier 1 Imports, hh Gregg, The Home Depot, Olive Garden, Chuck E. Cheese s, IHOP, Burger King, Buffalo Wild Wings, and more Applebee s enjoys frontage on South Green Bay Road (30,000 cars per day) and is located at one of the entrances to the Regency Mall Strong Population and Growth Data - Total population in a 5-mile radius exceeds 119,000 people with average household income exceeding $64,000; more than 246,000 people within 10 miles with average household income exceeding $66,000 Consumer spending within 5 miles exceeds $1.1 billion 4 I Matthews Retail Advisors

5 Executive Summary APPLEBEE S 2521 S Green Bay Rd Racine, WI List Price...$2,670,000 CAP Rate - Current % Gross Leasable Area...±7,250 SF Lot Size... ±1.38 Acres (60,645 SF) Year Built Annualized Operating Data Annual Rent Rent/SF Current $173,684* $23.96 *Includes $110,000 percentage rent bases in $3.5 MM 2015 sales Tenant Summary Tenant Trade Name Applebee s Tenant Captains-Kenosha, Inc., a subsidiary of Wisconsin Hospitality Group Type of Ownership Fee Simple Lease Type NNN Ground Lease Landlord Responsibility None Lease Dated 8/15/1994 Rent Commencement Date 1/23/1995 Lease Expiration Date 1/31/2020 Term Remaining on Lease 3.08 Years Increases 10% Every Five (5) Years Options Two (2), Five (5) Year Options Matthews Retail Advisors 5

6 PROPERTY OVERVIEW 6 I Applebee s

7 Physical Description Property Name Property Address Applebee s 2521 S Green Bay Rd Racine, WI Assessor s Parcel Number Site Description Number of Stories One Year Built 1988 Gross Leasable Area (GLA) ±7,250 SF Lot Size ±1.38 Acres (60,645 SF) Type of Ownership Fee Simple Parking Shared Parking Ratio (Shopping 7.5 : 1,000 SF Center) Landscaping Professional Topography Generally Level Construction Foundation Framing Exterior Parking Surface Roof Concrete Slab Metal Masonry Asphalt Flat Matthews Retail Advisors 7

8 Aerial 8 Applebee s

9 Regional Map Matthews Retail Advisors 9

10 Tenant Map 10 Applebee s

11 Bird s Eye S Green Bay Rd ±29,000 ADT 11 Applebee s Matthews Retail Advisors 11

12 TENANT OVERVIEW 12 Applebee s

13 Tenant Applebee s Neighborhood Grill and Bar Company Name Captains-Kenosha, Inc. Parent Company Wisconsin Hospitality Group Ownership Private No. of Locations ±100 Headquartered Wauwesha, Wisconsin Web Site Year Founded 1998 Wisconsin Hospitality Group, LLC, was formed in 1998 to purchase and operate all 23 Applebee s restaurants in Wisconsin. Shortly after experiencing initial growth with the Applebee s brand, WHG purchased over 80 Pizza Huts in eastern and central Wisconsin, becoming the largest restaurant operating company in the state. The company was founded with a steadfast commitment to taking care of its guests, employees and communities. The leaders had a vision for an innovative restaurant-management company that provides quality dining experiences for its guests while generating opportunities for employees and managers at all levels. WHG s proven profitability and business and community-based values have earned it a nationwide reputation. WHG has been selected as both a state and national finalist for the National Restaurant Association s Restaurant Neighbor Award, which recognizes restaurants for providing outstanding community service and involvement. Matthews Retail Advisors 13

14 AREA OVERVIEW Racine, Wisconsin Located at the mouth of the Root River on the shore of Lake Michigan, the city of Racine, Wisconsin, has been a center of commerce for more than 100 years. The city provides quick access to both Milwaukee and Chicago and is considered to be in the heart of the Chicago-Milwaukee MegaCity. It is the fifth largest city in Wisconsin and home to several international companies, including S.C. Johnson, Jockey International, Modine Manufacturing, CNH Global of Fiat, and Runzheimer International. Racine was a center of innovation and a factory town almost from its founding. Today, manufacturing remains an important part of the Racine area s economy; The region has over three hundred manufacturing firms which employ a large number of people. Racine County provides access to one of the largest markets in the world, while realizing a lower cost of doing business. Top Employers # Employer 1 All Saints Health Care System 2 S.C. Johnson & Son, Inc. 3 CNH America LLLC 4 Racine Unified School District 5 InSinkErator 6 Aurora Healtchare Hospital 7 City of Racine 8 Ruud Lightin 9 Nestle 10 BRP US INC. 14 Applebee s Matthews Retail Advisors 14

15 Attractions Racine County offers many cultural attractions, including the Racine Art Museum, the Charles A. Wustum Museum of Fine Arts, the Racine Symphony Orchestra and the Racine Zoological Gardens, which is located on the lakefront. The Racine Art Museum is the site of the largest collection of contemporary craft in America. Lighthouses have come and gone along Racine County s Lake Michigan shoreline, but none is more closely tied to the area than the Wine Point Lighthouse. It s the oldest and tallest working lighthouse on Lake Michigan with a beacon that can be seen 19 miles away. A nearby building, which once housed a fog horn, has been transformed into a museum. Downtown Racine is one of the Midwest s most unique and vibrant lakefront communities. With its historic charm, boutiques, art galleries, international cuisine and museums, Downtown Racine is home to locally owned shops, galleries and night spots. Monument Square, the business district s focal point, is the site of special events all year round, such as The Big Chill snow sculpting competition held in January and the Music on the Monument summer music series. The city has recognized its waterfront as a valuable asset and has put forth an effective effort towards revitalizing it through the addition parks and open areas. North Beach, a short walk from Downtown Racine and the marinas, is 50 acres of beautifully groomed sand and clear water. Among the popular features are the Beachfront Oasis, a summer live music venue, picnic areas and Kids Cove. In eastern Racine County, the Root River has several beautiful stretches of water where people can paddle upstream to Island Park or downstream to Lake Michigan and Racine Harbor. Alternatively, western Racine County has the Fox River Water Trail, which runs 14 miles from a put-in at the Michigan Conservation Area to a take-out at Burlington s Bushell Park. The easy-to-paddle water trail passes through a lake, county parks and wildlife areas with scenery running from farmland to wetlands to woods. Matthews Retail Advisors 15

16 Demographics Population 1-Mile 3-Mile 5-Mile 2021 Projection 6,052 65, , Estimate 5,911 64, , Census 5,722 64, , Census 5,249 63, ,615 Growth % 0.50% 0.38% Growth % -0.25% -0.56% Growth % 2.66% 2.44% Households 1-Mile 3-Mile 5-Mile 2021 Projection 2,687 26,525 47, Estimate 2,597 26,180 46, Census 2,462 25,849 46, Census 2,058 24,747 44,842 Growth % 1.32% 1.09% Growth % 1.28% 0.69% Growth % 4.45% 3.95% Income 1-Mile 3-Mile 5-Mile Income < $15, % 10.77% 13.06% Income $15,000 - $24, % 10.02% 11.61% Income $25,000 - $34, % 11.10% 11.22% Income $35,000 - $49, % 15.59% 15.08% Income $50,000 - $74, % 19.06% 17.86% Income $75,000 - $99, % 11.72% 11.11% Income $100,000 - $124, % 9.21% 8.16% Income $125,000 - $149, % 5.58% 5.13% Income $150,000 - $199, % 3.97% 3.96% Income $200,000 - $249, % 1.54% 1.41% Income $250,000 - $499, % 1.18% 1.15% Income $500, % 0.27% 0.26% 2016 Est. Average Household Income $56,653 $68,560 $65, Est. Median Household Income $44,410 $53,316 $49, Applebee s

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18 Chuck Evans Associate License No O M chuck.evans@matthews.com Kyle B. Matthews, CCIM Chairman & CEO License No O M kyle.matthews@matthews.com Beau Beach Broker of Record License No