SINGLE TENANT - NET LEASED INVESTMENT Burger King 300 6th Street Wausau, Wisconsin

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1 SINGLE TENANT - NET LEASED INVESTMENT Burger King 300 6th Street Wausau, Wisconsin Offering Memorandum prepared by Brian Bethea Senior Vice President bbethea@naicapital.com BRE License # Single Tenant Equity Advisors A Division of NAI Capital 1920 Main Street, Suite 100 Irvine, CA naicapital.com In conjuction with licensed broker, Wisconsin

2 Disclaimer Brian Bethea of NAI Capital ( Broker ) has been retained by the Buyer of th Street, Wausau, WI as the exclusive broker for this opportunity. This Offering Memorandum has been prepared by Broker for use by the principal ( Principal ) to whom Broker has provided this Offering Memorandum. The use of this Offering Memorandum and the information provided herein is subject to the terms, provisions and limitations of the Confidentiality Agreement furnished by Broker and executed by Principal prior to delivery of this Offering Memorandum. Although the information contained herein is based upon sources believed to be reasonably reliable, Owner and Broker, on their own behalf, and on behalf of their respective officers, employees, shareholders, partners, directors, members and affiliates, disclaim anresponsibility or liability for inaccuracies, representations and warranties (expressed or implied) contained in, or omitted from, the Offering Memorandum or any other written or oral communication or information transmitted or made available to the recipient of this Offering Memorandum. In amplification of and without limiting the foregoing, summaries contained herein of any legal orother documents are not intended to be comprehensive statements of the terms of such documents but rather only outlines of some of the principal provisions contained therein, and no representations or warranties are made as to the completeness and/or accuracy of the projections contained herein. Prospective purchasers of the Property should make their own investigations and conclusions without reliance upon this Offering Memorandum, the information contained herein or any other written or oral communication or information transmitted or made available. Additional information and an opportunity to inspect the Property will be made available upon written request by interested and qualified prospective purchasers. Owner expressly reserves the right, exercisable in Owner s sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Owner and Broker each expressly reserves the right, exercisable in their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/ or to terminate discussions with any entity at any time with or without notice. Broker is not authorized to make any representations or agreements on behalf of Owner. Owner shall not have any legal commitment or obligation to any entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed, delivered and approved by Owner and the other party thereto and any conditions to Owner s obligations hereunder have been satisfied or waived. If you have no interest in the Property at this time, return this Offering Memorandum immediately to: Brian Bethea NAI Capital 1920 Main Street, Suite 100 Irvine, CA tel fax bbethea@naicapital.com

3 Table of Contents 01 Investment Summary 03 Investment Highlights 04 Financials 06 Tenant Profile 07 Property of Area Overview 3

4 Investment Summary Synopsis: NAI Capital Net Lease Capital Advisors is pleased to Offer a Single Tenant Net Leased Burger King. Located at 300 6th Street, Wausau, WI. Rebuilt in 2007, the offering features an Absolute NNN lease (no landlord obligations) with an established Burger King franchisee with approximately 12 years left in the lease. This property is located at a signalized corner in the heart of Wausau Wisconsin, next to the Regional Mall. Investment Summary: Purchase Price: $1,640,000 NOI: 2015 / 2017: $109,650 / $117,873 Cap Rate: Total Bldg: Total Land: Total Land Acres: Lease Term: Lease Options: 6.7% / 7.2% CAP 4,163 SF 25,377 SF.58 Acres 20 years (Approx. 12 years left) Four (4) five (5) year options Increase: 7.5% increase every 5 years (March 2017) Lease Type: Lease Expiration: March 2027 Absolute NNN (no landlord obligations) 1

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6 Investment Highlights Investment Highlights: Burger King Franchise - CAVE Enterprises Traffic Counts with 16,900 Cars Per day on 6th St Located in the heart of downtown Wausau, Approx. 80 Unit Franchisee Operator Excellent Location / Signalized Corner Burger King Over 25 Years at this Location Located next to Wausau Mall, anchored by JCPenny, Sears, and Younkers (Bon Ton subsidiary) 3

7 Financials Summary Pricing Summary Property Specifications Purchase Price: $1, Year Built: 1985/Rebuilt 2007 Cap Rate: 6.7% NRA: 4,163 Purchase Price/SF: $ Occupancy: 100% Property Cash Flow Operating Cash Flow Year 1 Revenue Base Rental Revenue $109,650 Expense Reimbursement Revenue NNN Effective Gross Revenue $109,650 Operating Expenses CAM Paid by Tenant Insurance Paid by Tenant Property Taxes Paid by Tenant Total Operating Expenses NNN Net Operating Income $109,650 All Cash Return 6.7% 4

8 Financials Lease Abstract Tenant (Assigned): CAVE Enterprises - Assigned: Heartland Premises: +/- 25,377 SF of land located at 300 Sixth Street, Wausau, Wisconsin Lease Commencement: March, 2007 Lease Expiration: March 2027 Lease Term: Twenty (20) years Term Remaining: Approx. 12 years Rental Increase: 5% increase every 5 years Renewal Options: Four (4) consecutive 5 year options Annual Rent: Primary Term Years 1-5 $102, Current 6-10 $109, $117, $126, Repairs and Maintenance: Tenant shall take good care of the Premises, make all repairs thereto, interior and exterior, structural and nonstructural, ordinary and extraordinary foreseen and unforeseen. Tenant shall be solely responsible for replacement, repair and maintenance of building and premises including but not limited to the roof and all structure elements and systems servicing the premises. 5

9 Tenant Profile Burger King Burger King Worldwide, Inc., (NYSE: BKW), is a global chain of hamburger fast food restaurants headquartered in Miami-Dade County, Florida. Burger King is the second largest fast food hamburger chain in the world. Its restaurants offer flame-grilled hamburgers, chicken and other specialty sandwiches, French fries, soft drinks, and other food products. The company began in 1953 as Insta-Burger King a Jacksonville, Florida based restaurant chain. In 1954 the company was purchased by David Edgerton and James McLamore who renamed the company Burger King. As of 2010 the current owner is 3G Capital of Brazil. At the end of fiscal year 2013 the Burger King system consisted of 13,667 restaurants in over 95 countries and U.S. territories. Of these restaurants, 6,231, or 46%, are located outside the U.S. and Canada. Franchisees owned and operated 13,615 restaurants, or 100%, with the remaining 52 owned by Burger King. Franchisee Information This location is operated by CAVE Enterprises, one of the largest restaurant franchisee operators in the country with over 80 Burger King Locations. Company Profile Public Company: Burger King Holdings Inc. Website: No. of locations: +/- 13,667 S & P Credit Rating: B+ 6

10 Property Overview Property Address: 300 N. 6th Street Wausau, WI Parcel This property consists of a single parcel containing approximately.058 Acres and 25,548 SF of land area Assessor Parcel Number: Zoning The Parcel is zoned B43, Commercial by the city of Wausau Parking The property contains approximately 27 asphalt paved parking spaces Year Built The property was constructed in 1985 and rebuilt in

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12 Area Overview Location Overview Wausau is the County seat of Marathon County, Wisconsin. The Wisconsin River divides the city. Accordingly to the 2012 US Census, Wausau has a population of 39,160 people. Wausau is Located in the heart of Wisconsin at the crossroad of two major transportation systems, Wausau is ideally suited for business, recreation, and family needs. Wausau is served by state highways USH 51/I39 going north and south and STH 29 going east and west. Down the Street from the Burger King Restaurant is the Wausau Center Mall, a 429,970 SF enclosed mall anchored by JCPenny, Sears, and the Younkers (Bon Ton subsidiary). The mall was originally built in 1983 and renovated in Across the street is the expansive Wausau Court House and Municipal Buildings. Due to the proximity to the courthouse man u of the neighboring buildings are law offices. One block northwest of the Burger King is a four story US Bank Building. 9