20 YEAR ABSOLUTE NNN LEASE MAULDIN, SC

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1 LONG JOHN SILVER S CORPORATE GUARANTEE 20 YEAR ABSOLUTE NNN LEASE MAULDIN, SC NET LEASED RETAIL OF MARCUS & MILLICHAP JOSEPH BLATNER / (503) SCOTT LOGAN / (503) Joseph.Blatner@marcusmillichap.com Scott.Logan@marcusmillichap.com :: NetLeasedRetail.com

2 LEGAL DISCLAIMER Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: 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 matters. 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 documents related to the property and tenant. While the tenant s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newlyconstructed 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 and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property. The information contained in this Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. 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. 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 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, 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. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. LONG JOHN SILVER S - MAULDIN, SC :: 2

3 INVESTMENT OVERVIEW NEW 20 YEAR ABSOLUTE NET LEASE PRICE $1,740,000 CAP 5.75% NET OPERATING INCOME... $100,000 LEASE TYPE.... Absolute Net LEASE COMMENCEMENT... 1/31/2018 LEASE EXPIRATION DATE... 1/30/2038 GUARANTOR.... Long John Silver s LLC YEAR BUILT INCREASES % Increases Every 5 Years OPTIONS....(4) Five Year Options with 10% Increases in Each Option BUILDING SIZE....2,620 SF LOT SIZE Acres ADDRESS South Main Street, Mauldin, SC LONG JOHN SILVER S - MAULDIN, SC :: 3

4 INVESTMENT DETAILS CENTRAL LOCATION The property is located on U.S. Route 276 / Main Street, with daily traffic counts of 34,000 vehicles. U.S. Route 276 / Main Street passes through the center of Mauldin, leading northwest 8 miles to the center of Greenville and southeast 5 miles to Simpsonville. Long John Silver s is located in a dense retail area surrounded by both regional and national retailers such as Walgreens, CVS, Bi-Lo, KFC, Dominos, Wendy s, Dunkin Donuts, Hardees & Ingles Market. ABSOLUTE NET LEASE The absolute net lease structure provides the owner with a passive investment and no landlord maintenance responsibilities. NEW 20 YEAR LEASE The 20 year absolute net lease has 10% rental increases every 5 years and four, 5 year options to renew with 10% increases in each option. CORPORATE GUARANTEE The lease is guaranteed by Long John Silver s LLC. The iconic brand was founded in 1969 in Lexington, KY. The brand is at a three-year high on customer satisfaction and brand awareness. With nearly 1,100 units in 43 states in the United States and two countries outside of the U.S., the brand has $530 million in annual sales and 28,000 global employees. LONG JOHN SILVER S - MAULDIN, SC :: 4

5 RENT ROLL TENANT INFO LEASE TERMS CURRENT RENT RENT INCREASES LEASE NAME SQUARE FEET COMMENCEMENT EXPIRATION ANNUAL BASE RENT DATE ANNUAL RENT OPTIONS TYPE LONG JOHN SILVER S 2,620 SF 1/31/2018 1/30/2038 $100,000 1/31/2023 1/31/2028 1/31/2033 $110,000 $121,000 $133,100 (4) 5 year options with 10% rental increases ABSOLUTE NET LONG JOHN SILVER S - MAULDIN, SC :: 5

6 AERIAL VIEW N Miracle Hill Thrift AZTECA Mexican Restaurant Mauldin Cultural Center Mauldin Sports Center donation center Walgreens market McDonald s 17,100 CARS DAILY* 276 S MAIN ST Wholesale Glass Distributors BUTLER RD 34,600 CARS DAILY* After School Plus Carolina Fashions * Costar 2016 LONG JOHN SILVER S - MAULDIN, SC :: 6

7 DEMOS 5 Miles > LONG JOHN SILVER S HOUSEHOLD INCOME 2017 AVERAGE 2017 MEDIAN 1 Miles 3 Miles 5 Miles $61,045 $73,522 $80,561 $50,320 $60,586 $60,930 LONG JOHN SILVER S POPULATION Miles 3 Miles 5 Miles 6,815 37, ,742 7,531 42, ,807 8,277 47, ,117 LONG JOHN SILVER S - MAULDIN, SC :: 7

8 MAULDIN, SC ABOUT Mauldin, SC Mauldin, SC is a principal city of the Greenville-Anderson-Mauldin Metropolitan Statistical Area. Mauldin is situated in the heart of the Upstate of South Carolina; 3 hours from the sunny South Carolina shoreline, a little over one hour away from the Blue Ridge Mountains, and only 15 minutes from Greenville- Spartanburg International Airport. Major shops are only 10 minutes away and a large array of restaurants and family-friendly activities are at every turn. :: OUTDOOR ATTRACTIONS Mauldin is full of family-friendly activities, great restaurants, arts and culture, and over 70 acres of parks. All of our parks feature sprawling sports fields, a pedestrian walking trail and picnic shelters. With the Blue Ridge Mountains a short drive away, there s also hiking, whitewater rafting, horse back riding, mountain biking, hunting, fishing and spectacular waterfalls to discover :: GEOGRAPHY Mauldin is located south of the center of Greenville County, between the city of Greenville to the northwest and Simpsonville to the southeast. According to the United States Census Bureau, the city has a total area of 10 square miles. U.S. Route 276 (Main Street) passes through the center of Mauldin, leading northwest 8 miles to the center of Greenville and southeast 5 miles to Simpsonville. :: POPULATION & GROWTH Mauldin is a progressive community of about 24,000 people. The 2010 Census revealed that Mauldin was the 7th fastest growing city in South Carolina and, based on 2013 Census estimates, is the 17th largest of 270 South Carolina cities. TENNESSEE KNOXVILLE N O R T H C A R O L I N A S O U T H C A R O L I N A MAULDIN CHARLOTTE COLUMBIA LONG JOHN SILVER S - MAULDIN, SC :: 8

9 TENANTS OVERVIEW ABOUT LONG JOHN SILVER S An iconic American brand, Long John Silver s was founded in Lexington, KY in Since then it has grown into the largest seafood company in the U.S. The market is almost saturated with burger, pizza and chicken brands - seafood is the final frontier in QSR development. The brand is at a three-year high on customer satisfaction and brand awareness. With nearly 1,100 units in 43 states in the United States and two countries outside of the U.S. the brand has $530 million in annual sales and 28,000 global employees. # OF LONG JOHN SILVER S LOCATIONS: 1,100 ACROSS 43 STATES & 2 COUNTRIES # OF EMPLOYEES: 28,000 GLOBALLY ANNUAL SALES: $530 MILLION :: LONG JOHN SILVER S POISED FOR GROWTH We are moving into a new era for Long John Silver s and enhancing the customer experience, said CEO James O Reilly. Since last year s kick off we have started to transform restaurants across the country with our new branding, introduced the drive-thru of the future, answered the call for grilled items, and updated our website. Recently the company has seen big developments at corporate headquarters with an upgrade to larger and more contemporary space in Louisville. The company expects to open new units in the coming year including a flagship restaurant near headquarters. It will be the first restaurant to feature all the elements of the new vision.* :: NAMED BEST PLACE TO WORK IN KENTUCKY ABOUT A&W A&W is an iconic brand that is experiencing a major renaissance under new franchisee ownership. A&W and Long John Silver s previously owned by Yum! were sold to A Great American Brand LLC, a partnership of international and domestic franchisees, including the National A&W Franchisees Association (NAWFA). With their years of experience working on the front lines of their own franchises, NAWFA helped restructure the A&W business model in 2011, bringing the brand back in line with its 100-year-old roots. Between 2011 and 2016, A&W has experienced a brand resurgence with nearly 30% increases in same-store sales on average. Long John Silver s was on the Best Places to Work in Kentucky list for the second consecutive year in 2017, according to the Kentucky Chamber of Commerce and the Kentucky Society for Human Resource Management. Long John Silver s employs approximately 200 employees in the Louisvillemetro area and has nearly 1,000 stores across the country. Long John Silver s has built a family-first culture based on work/life balance, inclusivity, and recognition, said Krista Foster, Vice President of Human Resources in a press release.* * source: LONG JOHN SILVER S - MAULDIN, SC :: 9

10 LONG JOHN SILVER S CORPORATE GUARANTEE 20 YEAR ABSOLUTE NNN LEASE MAULDIN, SC NET LEASED RETAIL OF MARCUS & MILLICHAP JOSEPH BLATNER / (503) SCOTT LOGAN / (503) Joseph.Blatner@marcusmillichap.com Scott.Logan@marcusmillichap.com :: NetLeasedRetail.com