APPLEBEE S ABSOLUTE NNN LEASED OFFERING

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1 REPRESENTATIVE PHOTO OFFERING MEMORANDUM Presented By: APPLEBEE S ABSOLUTE NNN LEASED OFFERING 4425 NATIONAL ROAD EAST, RICHMOND, IN MICHAEL A. PAEZ VICE PRESIDENT OF INVESTMENT SALES T: E: mpaez@thekasegroup.com BRE# HARRY KENNERK LOCAL BROKER T: E: harry@hkprop.com LIC#RB

2 DISCLAIMER & CONFIDENTIALITY The material contained in this Investment Offering Brochure is furnished solely for the purpose of considering the purchase of the property within and is not to be used for any other purpose. This information should not, under any circumstances, be photocopied or disclosed to any third party without the written consent of The Kase Group or Owner, or used for any purpose whatsoever other than to evaluate the possible purchase of the Property. The only party authorized to represent the Property Owner ( Owner ) in connection with the sale of the Property is The Kase Group Advisor listed in this proposal, and no other person is authorized by the Owner to provide any information or to make any representations other than contained in this Investment Offering Brochure. If the person receiving these materials does not choose to pursue a purchase of the Property, this Offering Brochure must be returned to The Kase Group. Neither The Kase Group Advisor nor the Owner make any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied upon as a promise or representation as to the future performance of the Property. This Offering Brochure may include certain statements and estimates by The Kase Group with respect to the projected future performance of the Property. These Assumptions may or may not be proven to be correct, and there can be no assurance that such es mates will be achieved. Further, The Kase Group Advisor and the Owner disclaim any and all liability for representations or warranties, ex- pressed or implied, contained in or omitted from this Investment Offering Brochure, or any other written or oral communication transmitted or made available to the recipient. The recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any final, fully executed and delivered Real Estate Purchase Agreement between it and Owner. The information contained herein is subject to change without notice and the recipient of these materials shall not look to Owner or The Kase Group Advisor, nor any of their officers, employees, representatives, independent contractors or affiliates, for the accuracy or completeness thereof. Recipients of this Investment Offering Brochure are advised and encouraged to conduct their own comprehensive review and analysis of the Property. This Investment Offering Brochure 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 to purchase the Property and expressly reserves the right, at its sole discretion, to terminate negotiations with any entity, for any reason, at any me with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the Investment Offering Brochure or making an offer to purchase the Property unless and un l the Owner executes and delivers a signed Real Estate Purchase Agreement on terms accept- able to Owner, in Owner s sole discretion. By submitting an offer, a prospective purchaser will be deemed to have acknowledged the foregoing and agreed to release the Owner and The Kase Group Advisor from any liability with respect thereto. To the extent Owner or any agent of Owner corresponds with any prospective purchaser, any prospective purchaser should not rely on any such correspondence or statements as binding Owner. Only a fully executed Real Estate Purchase Agreement shall bind the property and each prospective purchaser proceeds at its own risk. APPLEBEE S RICHMOND, IN

3 TABLE OF CONTENTS 4 INVESTMENT OVERVIEW 5 FINANCIAL SUMMARY 6 TENANT OVERVIEW 7 LOCATION AERIAL 8 DEMOGRAPHICS 9 AREA OVERVIEW MICHAEL A. PAEZ VICE PRESIDENT OF INVESTMENT SALES T: E: mpaez@thekasegroup.com BRE# HARRY KENNERK LOCAL BROKER T: E: harry@hkprop.com LIC#RB APPLEBEE S RICHMOND, IN

4 INVESTMENT OVERVIEW Subject property is a 5,448 square foot Applebee s restaurant located in Richmond, IN. The lease, which has 8 years remaining on the term and is guaranteed by the second largest Applebee s operator in the country. The restaurant is located in the heart of Richmond s retail hub, just east of Richmond Square Mall. Nearby retailers include Macy s, Dillard s, Best Buy, Party City, Aldi, Hobby Lobby, Menards, Kohl s, Kroger, Chili s, Olive Garden, and AMC. INVESTMENT HIGHLIGHTS LONG TERM ABSOLUTE NNN LEASE 100% FEE SIMPLE INTEREST ZERO LANDLORD OBLIGATIONS SCHEDULED ANNUAL INCREASES IN RENT OUTPARCEL TO HOBBY LOBBY ANCHORED CENTER HIGH VISIBILITY LOCATION - 36,700+ (AADT) STRONG PERFORMING LOCATION OFFERING SPECIFICATIONS PRICE $2,473,700 CAP RATE 7.00% NET OPERATING INCOME $173,162 SQUARE-FOOTAGE 5,448 LOT SIZE 1.06 AC APPLEBEE S RICHMOND, IN 4

5 FINANCIAL SUMMARY APPLEBEE S ABSOLUTE NNN LEASED OFFERING 4425 NATIONAL ROAD EAST, RICHMOND, IN $2,473, % CAP FEE SIMPLE OWNERSHIP SUMMARY OPERATING SUMMARY TENANT NAME APPLEBEE S - RMH ENTERPRISES NET OPERATING INCOME CAP RATE SQUARE FOOTAGE 5,448 LEASE BEGINS 06/30/2010 LEASE ENDS 06/29/2025 ANNUAL RENT $173, $173, % 2018 $174, % 2019 $176, % 2020 $178, % OPTIONS INCREASES ROFR FOUR, 5 YEAR 1% ANNUALLY TENANT HAS A 10 BUSINESS DAYS ROFR 2021 $180, % APPLEBEE S RICHMOND, IN 5

6 TENANT OVERVIEW ABOUT APPLEBEE S Founded nearly three decades ago on the principles of exceptional value and family fun, Applebee s Services, Inc., operates what is today the largest casual-dining chain in the world. This prominent eatery draws people of all ages and lifestyles with its fun, family-friendly atmosphere and signature bar and grill menu. Applebee s continues to grow and prosper, and further differentiates itself with innovative attractions, like the popular Carside to Go service available at many of its restaurants. And the company continually works to add greater value and broaden its appeal, as evidenced by the It s a Whole New Neighborhood campaign, which launched in the spring of 2008, indicative of a fresh, re-energized approach and the promise of new, enticing menu items. Applebee s Services Inc., and its affiliates, franchise and operate restaurants under Applebee s Neighborhood Grill & Bar and are a DineEquity, Inc. (NYSE: DIN) brand. Currently, there are over 1990 Applebee s restaurants operating system-wide in 49 states, 15 international countries and one U.S. territory. The Applebee s system employs approximately 28,000 employees company-wide. ABOUT RMH FRANCHISE RMH Franchise Holdings, Inc. is the second largest Applebee s franchisee in the United States, currently operating 174 Applbee s locations across 15 states. The company acquired its first Applbee s location in December 2012 and has been growing in size and operating locations ever sine. In October 2013, RMH acquired an additional 80 locations, securing itself as one of the top Applebee s franchisees. Headquarted in Lincoln, Nebraska, RMH currently employs over 7,000 people and has plans for future Applebee s acquisitions. 174 LOCATIONS 7,000 + EMPLOYEES RMH is wholly owned by ACON Franchise Holdings (AFH), a subsidiary of ACON Investments. ACON formed AFH in December 2012 to pursue selected deep value opportunities in the franchised restaurant sector. The platform evaluates opportunities of well established brands in teh casual dining, quick casual, and QSR sectors. They seek to find value-oriented franchise opportunties in well-established brands where they believe management can achieve restorative growth through identifiable operational initiatives. RMH was their first deal. EXCELLENT DEMOGRAPHICS $ PRIVATELY HELD APPLEBEE S RICHMOND, IN 6

7 LOCATION AERIAL APPLEBEE S RICHMOND, IN 7

8 DEMOGRAPHICS 3 MILES 5 MILES 10 MILES TOTAL POPULATION 18,266 43,588 71,283 TOTAL NUMBER OF HOUSEHOLDS 7,730 17,985 29,043 AVERAGE HOUSEHOLD INCOME $58,477 $49,966 $51,179 MEDIAN AGE APPLEBEE S RICHMOND, IN 8

9 AREA OVERVIEW DEMOGRAPHICS 3 MILES 5 MILES 10 MILES TOTAL POPULATION 18,266 43,588 71,283 TOTAL NUMBER HOUSEHOLDS 7,730 17,985 29,043 RICHMOND, INDIANA Richmond, Indiana is a city in the east central part of the state, bordering Ohio. The town has twice won the title of All American City as designated by the National Civic League, which is the oldest community recognition program in the nation. Richmond hosts the Indiana Football Hall of Fame, and home to legendary athletes, entertainers, authors, artist, musicians and industries that have attracted international attention in their respective fields. We are proud to be teh home of Indiana University East, Earlham, Ivy Tech, Purdue ollege of Technology; not to mention several highly accredited K-12 schools. Education has always and will continue to play an important role in teh community. Richmond is slowly becoming recognized as teh cradle of recorded jazz music; and for its lavish culture. From this, Richmond is celebrating what its community has accomplished, in teh lively Spirit of Gennett Records. Richmond is noted for its rich stock of historic architecture. The significance of the architecture has been recognized. Five large districts, such as the Depot District, and several individual buildings are listed in teh National Register of HIstoric Places, teh Historic Aerican Buildings Survey, and the Hisotric American Enginering Record. TOTAL NO. PERSONS PER HOUSEHOLD AVERAGE HOUSE VALUE $160,303 $151,266 $143,894 AVERAGE HOUSEHOLD INCOME $58,477 $49,966 $51,179 MEDIAN AGE MEDIAN AGE - MALE MEDIAN AGE - FEMALE POPULATION WHITE 15,893 37,488 63,146 POPULATION BLACK 983 2,831 4,006 POPULATION HISPANIC 717 1,703 2,144 POPULATION ASIAN POPULATION PACIFIC ISLANDER POPULATION AMERICAN INDIAN POPULATION OTHER APPLEBEE S RICHMOND, IN 9

10 RICHMOND INDIANA APPLEBEE S ABSOLUTE NNN LEASED OFFERING 4425 NATIONAL ROAD EAST, RICHMOND, IN MICHAEL A. PAEZ VICE PRESIDENT OF INVESTMENT SALES T: E: mpaez@thekasegroup.com BRE# HARRY KENNERK LOCAL BROKER T: E: harry@hkprop.com LIC#RB