STNL Denny s Main Street, Ramona, CA. Asking Price $2,400,000 Cap Rate 5.0% NOI $120,000

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1 STNL Denny s 1946 Main Street, Ramona, CA Investment Highlights: Asking Price $2,400,000 Cap Rate 5.0% NOI $120,000 Exclusively Offered By: Ken Gould Senior Vice President/Principal (949) kgould@lee-associates.com Brian Barson, CCIM Senior Vice President/Principal (949) bbarson@lee-associates.com

2 DISCLAIMER This Executive Summary was prepared by Lee & Associates - Newport Beach (the Broker ) solely for prospective purchasers of 1946 Main Street, Ramona, CA (the Property ). Neither we (Lee & Associates, its brokers, employees, agents, principals, officers, directors and affiliates) nor the Owner of the Property (the Owner ) make any representation or warranty, expressed or implied, as to the completeness or the accuracy of the material contained herein. The information contained herein was prepared to provide a summary of unverified information to prospective purchasers and to establish only a preliminary level of interest in the Property. The information contained herein is not a substitute for a thorough due diligence investigation; you and your attorneys, advisors and consultants should conduct your own investigation of the property and transaction. The information contained herein has been obtained from the property owner or other third party and is provided to you without verification as to accuracy with respect to the size and square footage of the Property and improvements, the presence or absence of contaminating substances, PCB s or asbestos on the Property, etc. All potential buyers must take appropriate measures to verify all of the information set forth herein. It is the sole responsibility of the prospective Buyer to confirm the size of the units, building and property. The building is being offered on an As Is basis - Broker and Owner shall not make any representations as to the conditions of the building. The Executive Summary is a solicitation of interest only and is not an offer to sell the Property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property and expressly reserves the right, at its sole discretion, to terminate negotiations with any entity at any time, or to remove the property from the market with or without notice. The Owner shall have no legal commitment or any obligation to any entity reviewing the Executive Summary or making an offer to purchase the Property unless and until the Owner executes and delivers a signed Real Estate Purchase Agreement on terms acceptable to Owner, in Owner s sole discretion. The Executive Summary is confidential. By accepting the Executive Summary, you agree (i) that you will hold and treat the Executive Summary and its contents in the strictest confidence, (ii) that you will not photocopy or duplicate any part of the Executive Summary, (iii) that you will not disclose the Executive Offering or any of its contents to any other entity without the prior written authorization of the Owner or the Broker, and (iv) that you will not use the Executive Summary in any fashion or manner that may be deemed detrimental to the Owner or the Broker. It is hereby acknowledged that Owner and authorized agent of Owner are licensed California real estate brokers. DO NOT DISTURB TENANT 1946 Main Street, Ramona, CA 2

3 INVESTMENT OVERVIEW Pricing Summary: Asking Price $2,400,000 Price Per Sq Ft (Denny s Building) $ Cap Rate 5.0% Net Operating Income $120,000 Property Summary: Restaurant Tenant: Ortega, Inc. dba Denny's Address: 1946 Main St, Ramona, CA Assessor's Parcel Number: , 02, 03 Zoning: Commercial Year Built: 1998 Gross Leasable Area: +/- 4,880 sq ft Lot Size: +/ acres Type of Ownership: Fee Simple Lee & Associates - Newport Beach is pleased to exclusively offer for sale the absolute NNN leased Denny s restaurant property located at 1946 Main Street in Ramona, California. The property is located at the northeast corner of Main Street and Letton Street in the bedroom community of Ramona, approximately 25 miles northeast of downtown San Diego. This Denny s was recently acquired by a franchisee that also owns and operates four Orange County Denny s. Upon this acquisition, a new 10- year NNN lease was executed, effective January 1, The interior recently received an extensive renovation to bring it in line with Denny s current prototype. This offering includes three separate parcels, including a rough-graded vacant pad, all part of the tenant s leased Premises Main Street, Ramona, CA 3

4 TENANT OVERVIEW Tenant Overview: Tenant/Franchisee Ortega, Inc. dba Denny's Franchisor Denny's Corporation Ownership Public (NASDAQ: DENN) Market Cap $832 Million (6/2017) Annual Revenue $507 Million (Fiscal 2016) # of Stores 1,700+ Corporate (Franchisor): Denny s is a full-service pancake house/coffee shop/fast casual family restaurant chain. It operates over 1,700 restaurants in the United States (including Puerto Rico and Guam), Canada, Dominican Republic, El Salvador, Curaçao, Costa Rica, Venezuela, Honduras, Japan, Mexico, New Zealand, Qatar and the United Arab Emirates. Denny s is known for always being open, serving breakfast, lunch, dinner, and dessert around the clock. Unlike many other restaurant chains, Denny s does not close on holidays and nights, except where required by law. Many of their restaurants are located in proximity to freeway exits, bars, and in service areas. Denny s started franchising in 1963 and most Denny s restaurants are now franchisee-owned. Tenant (Franchisee): Ortega, Inc. is the tenant/franchisee and the lease is personally guaranteed by the operator. The tenant owns and operates five Denny s locations in Southern California and prides itself in providing its customers with an exceptional dining experience and industry-leading service Main Street, Ramona, CA 4

5 LEASE SUMMARY & RENT SCHEDULE Lease Summary: Lease Type Absolute NNN Lease Commencement 1/1/2017 Lease Expiration 12/31/2026 Term Remaining 9.5 Years Option Periods Remaining 4 x 5-Year Rent Increases 10% Every 5 Years Rent Roll: Lease Period Years Annual Rent Initial Term 1 to 5 $120, to 10 $132, Option 1 11 to 15 $145, Option 2 16 to 20 $159, Option 3 21 to 25 $175, Option 4 26 to 30 $193, Main Street, Ramona, CA 5

6 PROPERTY PHOTOS 1946 Main Street, Ramona, CA 6

7 VACANT PAD PHOTOS 1946 Main Street, Ramona, CA 7

8 SITE MAP 1946 Main Street, Ramona, CA 8

9 AREA MAP 1946 Main Street, Ramona, CA 9

10 REGIONAL MAP 1946 Main Street, Ramona, CA 10

11 AREA OVERVIEW Ramona is a census-designated place (CDP) in San Diego County, California. The population was 20,292 at the 2010 census. As an unincorporated town, Ramona s plenary local governing body is the San Diego County Board of Supervisors. However, many governmental functions operate at the local level in Ramona. According to the United States Geological Survey Ramona is located at N W within the Santa Maria Valley. This is near the intersection of State Route 67 and State Route 78 and near the economic center of Ramona. The elevation is 1,391 ft (424 m). above sea level (at Ramona Airport). Because Ramona is not an incorporated city, there are no city limits by which to measure its area. There are primarily three geographic areas by which the land area of Ramona is measured: 1. The boundaries of the Ramona Municipal Water District (approximately 75 square miles (194 km2)); 2. The boundaries of the Ramona Unified School District (approximately 150 square miles (390 km2)), and; 3. The boundaries of the Ramona Community Planning Area. The last is the primary area utilized by San Diego County s regional planning agency, the San Diego Association of Governments (SANDAG). The Ramona Community Planning Area encompasses more than 84,000 acres (340 km2) (over 130 square miles (340 km2)) in central San Diego County. The RCPA includes the unincorporated town of Ramona, California, and is located in the foothills of the Laguna Mountains. It is located east northeast of the City of Poway (with which it shares a boundary), east southeast of the City of Escondido, north of Lakeside, California and west southwest of Santa Ysabel, California. The RCPA consists primarily of the Santa Maria Valley and the San Vicente Valley, and the steep or mountainous terrain surrounding them. It also includes the Ballena Valley east of town, and Bandy Canyon and a small portion of the southern edge of the San Pasqual Valley. In the San Pasqual Valley, the RCPA abuts the City of San Diego. The historical town center of Ramona is located in the Santa Maria Valley. This valley was the Rancho Santa Maria, a Mexican land grant. The San Vicente Valley was formerly part of the Rancho Cañada de San Vicente y Mesa del Padre Barona Mexican land grant.[30] The San Diego Country Estates subdivision in Ramona is located in the San Vicente Valley. The Barona Indian Reservation, not part of the RCPA, is also within part of the Rancho Cañada de San Vicente y Mesa del Padre Barona Mexican land grant. Ramona has a Mediterranean climate with warm year round daytime temperatures and cool year round night temperatures. This includes high day to night changes in temperature Main Street, Ramona, CA 11

12 DEMOGRAPHICS 1 Mile 3 Mile 5 Mile Population: 2021 Projection 9,326 20,717 33, Estimate 8,716 19,599 31, Census 8,163 18,642 30,446 Growth % 1.12% 1.08% 2016 Population by Race: White 71.2% 75.1% 79.6% Black 1.0% 0.9% 0.9% American Indian 1.2% 1.1% 1.0% Asian 1.9% 1.5% 1.8% Pacific Islander 0.3% 0.4% 0.3% Other Race 19.5% 16.8% 12.4% Two or More Races 4.8% 4.2% 4.0% Hispanic Origin (Any Race) 40.4% 36.0% 28.1% 1 Mile 3 Mile 5 Mile 2016 Households by Income: <$15, $15,000 - $24, $25,000 - $34, $35,000 - $49, ,186 $50,000 - $74, ,128 1,707 $75,000 - $99, ,477 $100,000 - $149, ,025 2,293 $150,000 - $199, ,107 $200, Households: 2021 Projection 2,947 6,557 11, Estimate 2,774 6,244 10, Census 2,637 6,031 10,190 Growth % 0.98% 0.96% 2016 Owner Occupied 1,428 3,719 7, Renter Occupied 1,346 2,525 3, Avg Household Income $72,021 $86,490 $100, Med Household Income $56,110 $66,964 $80, Main Street, Ramona, CA 12

13 STNL Investment Ramona, CA Ken Gould Senior Vice President/Principal (949) CalBRE # Brian Barson, CCIM Senior Vice President/Principal (949) bbarson@lee-associates.com CalBRE # Lee & Associates - Newport Beach 100 Bayview Circle, Suite 600 Newport Beach, CA (949) Corporate ID