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1 Applebee s Neighborhood Grill & Bar w/ 10% bumps Modified Triple Net Ground Lease 842 Upper Front Street, Binghamton, NY Investment Summary: This Applebee s restaurant contains approximately 4,858 square feet and is is situated on acres. The building was constructed in in This property is is part of a 4-tenant property which also contains a 12 screen Regal Cinemas, a Fairfield Inn (82 rooms) and a Cracker Barrel restaurant. Binghamton is is part of the Southern Tier of Upstate New York and is is located 75 miles from Syracuse and approximately 150 miles from both New York City and Philadelphia. Binghamton is is the home to to State University of New York at at Binghamton, which has an enrollment of 14,000 students. The property is is strategically located between Interstate 81 and Front Street (US 11) and is is across from Broome Community College which has an enrollment of over 6,000 students. This is is the second Applebee s for T.L Cannon Co. in in the Vestal area. If If a buyer is is represented by a buyer s broker, then that broker must be compensated by the buyer. Price and Cap: We offer this property at at $1,232,000 which is is a 6.25% cap rate on income of $77,000. Note that rent increases by 10% every five years in in base term and options. Next increase is is 1/2010. Tenant: T.L. Cannon Companies (Private) The T.L. Cannon group of companies operates Applebee's restaurants in in New York State and Connecticut, and Johnny Carino's Country Italian restaurants in in Northeastern Florida. They currently operate fifty-eight Applebee's restaurants and have more under construction. They were named the Applebee's Franchisee of the Year in in About Applebee s: Applebee s Neighborhood Grill & Bar (NASDAQ: APPB) is is the largest casual dining concept in in America, both in in terms of number of restaurants and market share. As of Dec. 26, 2004, there were 1,671 Applebee s Neighborhood Grill & Bar restaurants, of which 1,247 were operated by franchisees and 424 were operated by the company. For each of the past 11 years ( ), Applebee s has opened 100 or more new restaurants. This rate of development growing from 250 restaurants at at the end of 1992 to to more than 1,600 currently - is is unprecedented in in the casual dining industry. Lease Summary: 15 Year Primary Term Annual Rent: $77,000 with 10% increase every five years. Commencement Date: 1/28/2005 Expiration Date: 1/31/2020 Options : 3 Five year options with 10% escalations every 5 years. Option 1: 1: $102,487, Option 2: 2: $112, and Option 3: 3: $124, Lease Type: This is is a modified triple net ground lease. The Tenant constructed and paid for the building. Upon lease expiration, ownership of the building reverts to to the owner of the land. Landlord has absolutely no maintenance, repair or replacement responsibility for the building or land, such responsibility being solely that of the Tenant. Tenant self maintains their common area including parking lot sweeping, landscaping and snow removal. Landlord pays CAM to to the owner of the Regal Cinema for common element maintenance including the front entrance and back access road (to Applebee s) and is is reimbursed by the Tenant plus a 15% administration fee. Landlord also pays taxes and is is reimbursed by the tenant. Landlord is is required to to carry liability insurance; a large portion of which is is reimbursed by Tenant.

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5 Binghamton, NY aine 2005 Average Income By Block Groups $75,000 or more $60,000 to $75,000 $45,000 to $60,000 $30,000 to $45,000 Less than $30, Miles Castle Creek 5.00 Miles 3.00 Miles 12 Chenango Bridge Port Crane Endwell ible School Park Vestal Johnson City n Port Dickinson Binghamton Kirkwood Conklin Demographics 842 Upper Front Street Binghamton, NY Estimates 3 Mile 5 Mile 7 Mile Total Population: 49,136 91, ,830 Total Households: 21,742 38,981 51,912 Avg. HH Income: $38,402 $47,347 $51,373 Med. HH Income: $30,631 $37,534 $41,308 Updates of 2000 Census Data by Claritas.