Hardee s Corporate Lease Indianapolis, IN. Representa)ve Photo OFFERING MEMORANDUM NNN PROPERTY ADVISORS. p:

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1 Hardee s Corporate Lease Indianapolis, IN Representa)ve Photo OFFERING MEMORANDUM p: info@nnnpropertyadvisors.com

2 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 NNN Property Advisors, LLC and should not be made available to any other person or entity without the written consent of NNN Property Advisors, LLC. 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. NNN Property Advisors, LLC 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, NNN Property Advisors, LLC has not verified, and will not verify, any of the information contained herein, nor has NNN Property Advisors, LLC 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. 2

3 OFFERING OVERVIEW Offering Summary Price (all cash) $1,877,000 Annual Rent $100,419 Cap Rate 5.35% Existing Financing No Rent Increases Years Remaining on Base Lease Term Lease Type 10% Every Five Years Absolute Net Tenant Trade Name Corporate Lease Hardee s Yes Property Overview Lessee Hardee s Restaurant, LLC Address 5016 Harding Lane 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Pro Forma Cap Rate 5.35% Today 5.89% Rent Increase % Rent Increase % Rent Increase 3 City Indianapolis State Indiana Zip Rentable Square Feet 3,377 Lot Size 60,758 SF Type of Ownership Fee Simple 3

4 LEASE OVERVIEW Lease Summary Tenant Hardee s Lease Commencement 3/26/2012 Lease Guarantor Hardee s Restaurant, LLC. Lease Expira)on 3/25/2032 Lease Type Absolute Net Term Remaining on Lease Years Roof and Structure Tenant Responsible Increases 10% Every Five Years Lease Term 20 Years Options Four, Five Year Options Financial Summary Lease Year Monthly Rent Annual Rent Years 1-5 $8, $100, Years 6-10 $9, $110, Years $10, $121, Years $11, $133, Base Rent ($29.74/SF) $100, Net Operating Income $100,

5 TENANT OVERVIEW Tenant Overview Hardee's Food Systems, Inc. is a wholly-owned subsidiary of CKE Restaurants, Inc. CKE Restaurants, Inc. is a privately held company founded in 1941 and headquartered in Carpinteria, California. CKE, through its subsidiaries, owns, operates and franchises some of the most popular brands in the quick service industry including the Carls Jr., Hardee s, Green Burrito and Red Burrito restaurants brands. The CKE system includes 3,400 restaurants in 42 states and 29 countries and U.S. territories worlwide generating approximately $3.9 billion in system revenue. Hardee's was founded in 1960 by Wilber Hardee when he opened his first restaurant in Greenville, North Carolina. Five months later, he had his first franchisee and the concept soon grew throughout the Midwestern and Southeastern US. In 1997, Hardee's was acquired by CKE Restaurants, Inc. The chain has built its reputation on a unique breakfast menu featuring Hardee s Made from ScratchTM Biscuits. With a renewed emphasis on premium quality, Hardee s has taken the lunch/dinner segment to the next level with its line of 100 percent Black Angus beef ThickburgersTM. Other menu favorites include charbroiled and crispy chicken sandwiches and delicious Crispy CurlsTM French Fries. In 2002, CKE Restaurants acquired Santa Barbara Restaurant Group which operated the Green Burrito Brand, a key piece of its dual- branding strategy. CKE co-branded the Carl's Jr. and Green Burrito concepts, and in 2005 began co- branding several Hardee's locations with the Red Burrito concept. There are 180 dual-branded Hardee's / Red Burrito units. Today there are over 1,900 Hardee's locations in 30 states and internationally in the Middle East. Source: 5

6 LOCATION OVERVIEW Aerial Photo Fronts South Harding Lane (Route 37, a major six lane highway Located one block off of Interstate 74/465 National tenants in the immediate area include: McDonald s, Taco Bell, White Castle and Knights Inn Excellent signage and visibility 6

7 INDIANAPOLIS OVERVIEW Indianapolis is the largest city in Indiana, with 12.8 percent of the state s total population. As of the 2013 Census estimate, Indianapolis has a population of 843,393. As of the 2012 Census estimate, the Indianapolis MSA has a population of 2,001,452. The largest industry sectors by employment in Indianapolis are manufacturing, health care and social services, and retail trade. Many of Indiana s largest and most recognized companies are headquartered in Indianapolis, including Eli Lilly and Company, Marsh Supermarkets, Finish Line, hhgregg Inc., and REIT Simon Property Group, in addition to the U.S. headquarters of Roche Diagnostics, First Internet Bank of Indiana, Dow AgroSciences, Steak n Shake, and Allison Transmission. Other major employers include Indiana University Health, Sallie Mae, Rolls-Royce, Raytheon, and General Motors. A 2013 analysis by site selection consulting firm The Boyd Company, Inc. ranked Indianapolis as the most cost competitive market for corporate headquarters facilities in the United States. The subject property is approximately six miles south of Downtown Indianapolis, whose boundaries are defined by 16th Street on the north, Interstate 65/70 on the east, Interstate 70 on the south and the Belt Railroad on the west. Demographic Growth Year Indianapolis % MSA % ,624 1,109, , % 1,166, % , % 1,380, % , % 1,607, % , % 1,834, % 2012/ 2013 est 843, % 2,001, % Downtown Indy is home to the Indiana University-Purdue University Indianapolis campus, White River State Park, the Indiana Convention center, NCAA Hall of Champions, Indianapolis Zoo, the Lucas Oil Stadium, Circle Centre Mall, shopping and nightlife on Massachusetts Avenue Cultural District and Meridian Street, the Indianapolis Cultural Trail, and 1990 War Memorial Plaza among many other attractions. 7

8 DEMOGRAPHIC INFORMATION 5016 Harding Lane Indianapolis, IN Miles: 3 Miles: 5 Miles: Population 1990 Population , , Population , , Population 1,169 41, , Population 1,255 42, ,686 Households 1990 Households ,269 55, Households ,843 60, Households ,928 63, Households ,190 63, Average Household Size Household Income Average Household Income $79,863 $64,840 $57,715 Median Household Income $69,469 $49,063 $57,715 8

9 Hardee s Corporate Lease Indianapolis, IN e. info@nnnpropertyadivsors.com p The information contained herein was obtained from sources believed reliable, however, NNN Property Advisors makes no guaranties, warranties or representations as to the completeness thereof. The presentation of this property for sale, rent or exchange is submitted subject to errors, omissions, change of price or conditions, or withdrawal without notice. 9