Portfolio of Ground Leases 927-933 South State St., Clarks Summit (Scranton), PA Property Summary: This portfolio of newly constructed properties is is situated on a 2.7 acre parcel and must be purchased together as they are located on one lot. Included in the sale is is a Dunkin Donuts (ground lease), First Liberty Bank (ground lease), Waffle House (ground lease) and Moe s Southwest Grill. First Liberty has three drive-thru tellers. These properties are located in Clarks Summit, PA. The Borough of Clarks Summit is is located in northeastern Pennsylvania, within the north central portion of Lackawanna County. The Borough is is located just off Interstate I-81 Exit 194 (old Exit 58) and at the northern end of the Northeast Extension of the Pennsylvania Turnpike (now I-476). The Borough is is just north of the City of Scranton and is is centrally located in the "Abingtons" at the entrance to the Endless Mountains. Clarks Summit is is approximately 40 miles south of Binghamton, NY and 100 miles north west of New York City. Area retailers include McDonald s, Starbucks, Wendy s, Blockbuster, Domino s Pizza and H&R Block among others. Average daily traffic counts on South State Street are 28,200 vpd. Price and Cap: Tenant Rent Escalations Lease Expiration Building Size Land Size First Liberty Bank $ 42,000 14% / 10% / 10% 10/1/2024 2,500 0.546 Acres Every 5 Yrs Dunkin Donuts $ 49,200 10% / 11% / 10% 10/1/2024 3,100 0.620 Acres Every 5 Yrs Moe's Southwest Grill $ 66,000 Flat During Base 1/31/2013 3,100 0.891 Acres Waffle House * 5/31/2053 1,750 0.364 Acres Total Purchase Price: $ 2,245,714 10,450 2.42 Acres Rent: $ 157,200 Cap: 7.00% * New owner will not collect any rent during the base term of this lease. Tenant has paid current Landlord $315,000 as prepaid rent for the entire 50 year lease term.
UPS, M&T Bank Quiznos, Radio Shack, Hallmark, Caravia Market, Browns Gym, Komoto, Dollar Bazzar Kimco Exchange Place is a subsidiary of Kimco Realty Corporation. Coast Tires
Tenant: First Liberty Bank & Trust, a division of Community Bank: Community Bank, N.A. (NYSE:CBU) is is headquartered in in DeWitt New York, a suburb of Syracuse and has branch offices located in in Upstate New York stretching diagonally from Northern New York to to the Southern Tier and west to to Lake Erie. Its predecessor bank was founded in in 1866, and it it is is the wholly-owned banking subsidiary of Community Bank System, Inc. (CBSI). In Pennsylvania, Community Bank, N.A. operates as First Liberty Bank and Trust, a division of Community Bank, N.A. First Liberty Bank and Trust (FLB) has branch offices located in in Lackawanna, Luzerne, Bradford, Susquehanna, and Wyoming counties in in Northeastern Pennsylvania. With predecessor banks dating back to to the early 1900s, First Liberty shares our commitment to to provide personalized, high-quality service and financial products. First Liberty Bank Tenant: 1st Liberty Bank and Trust, a Division of Community Bank Commencement Date: October 1, 2004 End Date: October 1, 2024 Base Term: 20 years Building Size: 2,500 Land Size: 0.546 Acres Rent: Year Monthly Annual 1-5 $3,500 $42,000 6-10 $4,000 $48,000 14% 11-15 $4,400 $52,800 10% 16-20 $4,840 $58,080 10% Options: ( 4 ) 5 year at 10% escalations at the beginning of each Option Monthly Annual 1 $5,324 $63,888 10% 2 $5,856 $70,277 10% 3 $6,442 $77,304 10% 4 $7,086 $85,035 10% Taxes: Lease Type: Landlord pays taxes and is reimbursed by tenant yearly Ground Lease This is an absolute triple net ground lease. The tenant constructed and paid for the building. Upon lease expiration, ownership of the building reverts 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 with respect to the building or parking lot. Landlord Responsibilities: Landlord is responsible to maintain the common areas (roadways) and is reimbursed 100% by the tenants at the end of the year.
First Liberty Bank
Tenant: Moe's Southwest Grill (Southwest Grill Of Clarks Summit, LLC): Moe's Southwest Grill operates a chain of about 350 quick-service eateries in about 35 states that offer standard Tex-Mex favorites, including burritos, quesadillas, and fajitas, in a quirky, fun atmosphere. (Menu items are named after TV, movie, and pop culture references, such as Art Vandalay, Triple Lindy, Joey Bag of Donuts, and John Coctostan). The restaurants offer tofu in addition to the traditional beef and chicken. Nearly all of the company's restaurants are operated by franchisees. Started by CEO Martin Sprock in 2001, the chain was acquired in 2007 by FOCUS Brands, which operates the Carvel ice cream chain and sandwich maker Schlotzsky's. This property is is operated by a 4 unit franchisee. Tenant: Southwest Grill of Clarks Summit, LLC Commencement Date: End Date: January 25, 2008, or the date Tenant opens for business, whichever is earlier January 25, 2013, or 5 years after the date Tenant opens for business Base Term: 5 years Base Rent (year): $66,000 Flat During Base Term Base Rent (month): $5,500 Lease Type: NNN Building Size: 3,100 Land Size: 0.471 Acres Options: (3) 5-year options, with 10% escalations at the start of each option Option 1: $72,600 Option 2: $79,860 Option 3: $87,846 Additional Rent: Landlord pays taxes and insurance and is reimbursed by tenant yearly Exclusive: Tenant Responsibilities: LL agrees not to lease to any other tenant operating as a Mexican fast-food or sit-down restaurant. Landlord has absolutely no maintenance, repair or replacement responsibility for the building or land, such responsibility being solely that of the tenant. Snow removal, glass replacement, all operating and upkeep charges, gas, heat, electricity, water, sewer, air conditioning, non structural maintenance and repairs, wear and tear, repairs and maintenance to heating, plumbing, ventilating, air conditioning, electrical and mechanical systems. Comprehensive commercial general public liability insurance. Landlord Responsibilities: Public liability and property damage insurance, fire insurance.
Moe s Southwest Grill (Tenant is modifying this building slightly and rebranding to Moe s Southwest Grill)
Tenant: Dunkin Donuts / Baskin Robbins (Previn Patel, LLC): The company is is a multi-concept foodservice franchisor, with more than 13,000 locations in 50 countries, including its popular Dunkin' Donuts and Baskin-Robbins chains. With more than 7,000 shops in 30 countries (4,400 of which are in North America), Dunkin' Donuts is is the world's leading chain of donut shops. Baskin- Robbins is is a leading seller of ice cream and frozen snacks with its nearly 6,000 outlets (about half are located in the US). Dunkin' Brands also runs the Togo's sandwich chain, with more than 250 units. About 1,100 locations offer a combination of the company's brands. This property is is operated by a 7 unit franchisee. Tenant: Previn Patel LLC d/b/a Dunkin Donuts / Baskin Robbins Commencement Date: August 1, 2005 End Date: October 1, 2024 Base Term: 20 years Building Size: 3,100 Land Size: 0.62 Acres Rent: Year Monthly Annual 1-5 $4,100 $49,200 6-10 $4,500 $54,000 10% 11-15 $5,000 $60,000 11% 16-20 $5,500 $66,000 10% Options: ( 4 ) 5 year at 10% escalations at the beginning of each Year Monthly Annual 1-5 $6,050 $72,600 10% 6-10 $6,655 $79,860 10% 11-15 $7,321 $87,846 10% 16-20 $8,053 $96,631 10% Taxes: Lease Type: Landlord pays taxes and is reimbursed by tenant yearly Ground Lease This is an absolute triple net ground lease. The tenant constructed and paid for the building. Upon lease expiration, ownership of the building reverts 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. Landlord Responsibilities: Landlord is reponsible to maintain the common areas and is reimbursed 100% by the tenants at the end of the year.
Dunkin Donuts / Baskin Robbins
Tenant: WH Capital, LLC: d/b/a Waffle House: The #2 family-style restaurant chain (behind Denny's) has more than 1,500 diners known for eggs, grits, waffles, and their famous "scattered, smothered, and covered" hash browns. In addition to day starters, the menu features T-bone steaks, cheeseburgers, and other sandwiches. Waffle House units are typically free standing, designed to resemble 1950s-style diners, and open 24 hours a day. They can be found in more than two dozen states, mostly in the South. The company operates more than 700 units and franchises the rest. This property is is operated by a 2 unit franchisee. Tenant: WH Capital, L.L.C. (Waffle House) Commencement Date: June 30, 2003 End Date: May 31, 2053 Base Term: 50 years Building Size: 1,750 Land Size: 0.364 Acres Rent: $0 Tenant has paid Landlord $315,000 as prepaid rent for the entire 50 year lease term. Taxes: Lease Type: Options: Landlord pays taxes and is reimbursed by tenant yearly Ground Lease (2) - 20 year options Option 1: Option 2: Price for entire 20 years will be based on market rent 120 days prior to option start Price for entire 20 years will be based on market rent 120 days prior to option start Landlord Responsibilities: Landlord is reponsible to maintain the common areas and is reimbursed 100% by the tenant at the end of the year.
Waffle House
Kimco Exchange Place is a subsidiary of Kimco Realty Corporation. 280 Park Avenue, 11th Floor, New York, NY 10017 Traffic Counts
120 Minute Drive Time
3,5,7 Mile Rings
DEMOGRAPHIC PROFILE 2000 Census, 2007 Estimates & 2012 Projections Calculated using Proportional Block Groups Lat/Lon: 41.489487/-75.69694 933 S State St Clarks Summit, Pennsylvania AGE HOUSEHOLDS POPULATION Dec-07 3.00 mi radius 5.00 mi radius 7.00 mi radius 2007 Estimated Population 19,929 59,584 136,282 2012 Projected Population 20,297 59,346 134,575 2000 Census Population 19,467 60,376 139,987 1990 Census Population 17,756 60,792 145,659 Historical Annual Growth 1990 to 2007 0.7% -0.1% -0.4% Projected Annual Growth 2007 to 2012 0.4% -0.1% -0.3% 2007 Est. Households 7,691 24,028 55,974 2012 Est. Households 7,892 24,104 55,634 2000 Census Households 7,414 24,038 56,826 1990 Census Households 6,440 23,109 56,396 Historical Annual Growth 1990 to 2007 1.1% 0.2% 0.0% Projected Annual Growth 2007 to 2012 0.5% 0.1% -0.1% 2007 Population 0 to 9 Years 11.3% 10.7% 10.2% 2007 Population 10 to 19 Years 14.1% 13.0% 12.9% 2007 Population 20 to 24 Years 5.9% 6.6% 7.8% 2007 Population 25 to 44 Years 23.5% 24.1% 24.5% 2007 Population 45 to 59 Years 24.9% 22.6% 21.1% 2007 Population 60 to 74 Years 12.7% 13.2% 13.2% 2007 Population 75 Years Plus 7.8% 9.8% 10.3% 2007 Est. Median Age 40.8 40.8 40.2 MARITAL STATUS & SEX 2007 Male Population 48.2% 47.3% 47.4% 2007 Female Population 51.8% 52.7% 52.6% Married Base (15yrs+) 16,338 49,537 114,374 Never Married 22.0% 25.0% 28.1% Now Married 62.2% 54.7% 48.8% Separated, Divorced or Widowed 15.7% 20.3% 23.1% Households with Kids 36.4% 33.9% 31.7% Average Household Size 2.5 2.4 2.3 INCOME 2007 Est. HH Income $200,000 or More 6.8% 3.6% 2.3% 2007 Est. HH Income $150,000 to 199,999 5.9% 3.2% 2.2% 2007 Est. HH Income $100,000 to 149,999 15.3% 9.5% 7.8% 2007 Est. HH Income $75,000 to 99,999 14.3% 11.5% 10.0% 2007 Est. HH Income $50,000 to 74,999 18.1% 19.0% 18.1% 2007 Est. HH Income $35,000 to 49,999 13.3% 14.8% 15.0% 2007 Est. HH Income $25,000 to 34,999 9.4% 11.9% 12.4% 2007 Est. HH Income $15,000 to 24,999 8.1% 12.8% 14.6% 2007 Est. HH Income $0 to 14,999 8.8% 13.6% 17.6% 2007 Est. Average Household Income $80,500 $60,307 $51,810 2007 Est. Median Household Income $65,163 $49,296 $42,178 2007 Est. Per Capita Income $31,707 $24,841 $22,184 Number of Businesses 985 2,582 6,471 Total Number of Employees 14,188 33,206 88,516 RACE 2007 Estimated Population 19,929 59,584 136,282 2007 Est. White Population 96.0% 96.4% 95.0% 2007 Est. Black or African American 0.8% 1.1% 2.2% 2007 Est. American Indian & Alaska Native 0.1% 0.1% 0.1% 2007 Est. Asian & Pacific Islander 2.2% 1.2% 1.2% 2007 Est. Two or more and Other Races 0.8% 1.1% 1.5%