IHOP A NET LEASED CASUAL DINING RESTAURANT SACRAMENTO, CA

Overview IHOP 4770 FLORIN ROAD, SACRAMENTO, CA 95823 $1,552,000 PRICE 5.50% CAP LEASABLE SF 4,461 SF TRAFFIC 273,000+ LAND AREA 0.57 Acres NOI $85,377 LEASE TYPE ABSOLUTE NNN LEASE EXPIRATION 12/11/2021 Triple net lease with recent upgrades completed Tenant spent over $175,000 over the last 12 months to remodel building and property Long Term Corporate Leased Store at location for over 20 years Franchisee operates over 20 IHOPs in the Sacramento Region Lease has just over three years remaining and no remaining options Sustainable rent level with potential upside Ideal location in Florin Square Shopping Center Visible and accessible from Highway 99 (207,200 ) This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. Located between the major retail shopping centers in South Gate Plaza and Florin Mall Town Center 2

Investment Highlights THE OFFERING represents the opportunity for an investor to acquire an established and proven, net leased IHOP restaurant with three years remaining of primary term at a sustainable rent level with potential for long term rent growth. The lease is a long-term corporate lease that has been at the location since 1986. The property is located at the top five retail intersection of Highway 99 and Florin Road in the heart of a major retail trade area in Sacramento. The location benefits from on/off ramp access immediately off of Highway 99 with vehicle counts of 207,200. The property shares a parking lot with a new construction Dutch Bros Coffee building which attracts morning/breakfast traffic. Parking in the center is ample and shared. Contact the team DAVE LUCAS dlucas@capitalpacific.com PH: 415.274.7390 CA DRE#: 01389761 SACRAMENTO is the capital city of California, as well as the the sixth-largest city in the state. The city hosts a population of over 500,000 and a metropolitan area of over 2,500,000. It is the most rapidly-growing major city in the state and a hub for politics, finances, education and tourism. Sacramento is home to several major universities, including Sacramento State University, University of the Pacific, and nearby University of California - Davis. IHOP HAS OVER 1,700 LOCATIONS IN ALL 50 U.S. STATES This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 3

ON CKT ARD STOULEV BO Aerial ELEMENTARY SCHOOL FRA LIN NK 207,200 BO MIDDLE SCHOOL 99 RD VA ULE ELEMENTARY SCHOOL SACRAMENTO COUNTY 56,296 SACRAMENTO COUNTY FLORIN ROAD FLORIN ROAD HIGH SCHOOL CALIFORNIA DMV HIGH SCHOOL SCHOOL 30,600 28,583 182,700 ARD LEV N NKLI FRALEVARD BOU SACRAMENTO CITY CENTER 99 OU B ON CKT STO ELEMENTARY ELEMENTARY This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. SCHOOL 4

Retail Aerial 207,200 99 56,296 FLORIN ROAD 10,420 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. EAST PARKWAY 5

Retail Aerial EAST PARKWAY 56,296 FLORIN ROAD 10,420 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 6

Income & Expense CURRENT Price: $1,552,000 Capitalization Rate: 5.50% Price Per Square Foot: $347.90 Total Leased (SF): 100.00% 4,461 Total Vacant (SF): 0.00% 0 Total Rentable Area (SF): 100.00% 4,461 INCOME P/SF Scheduled Rent $19.14 $85,377 EFFECTIVE GROSS INCOME $85,377 EXPENSES Property Tax Insurance Common Area Maintenance P/SF NNN NNN NNN NET OPERATING INCOME $85,377 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 7

Rent Roll TENANT INFO LEASE TERMS RENT SUMMARY TENANT SQ. FT PERCENT OF LOT TERM MONTHY RENT ANNUAL RENT RENT/FT/YR LEASE TYPE IHOP 4,461 100.00% 12/12/1986 12/11/2021 $7,114.75 $85,377.00 $19.14 NNN Corporate Lease No Remaining Options Current Totals: 4,461 100.00% Occupied 4,461 100.00% 2018 Total Monthly Rent: $7,114.75 Vacant 0 0.00% 2018 Total Annual Rent: $85,377.00 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 8

Lease Abstract PREMISE & TERM TENANT GUARANTOR BUILDING SF LEASE TYPE TERM RENT BASE RENT International House of Pancakes, Inc. Corporate 4,461 SF Absolute NNN 25 year base term with two 5-year options RENT COMMENCEMENT December 12, 1986 EXPIRATION December 11, 2021 DATE RANGE MONTHLY RENT ANNUAL RENT 12/12/1986-12/11/2021 $7,114.75 $85,377.00 No Remaining Options EXPENSES LEASE PROVISIONS TENANT S OBLIGATIONS Keep Leased premises in good condition and repair. LANDLORD S OBLIGATIONS Repair common area subject to reimbursement. TAXES Tenant shall pay its pro rata share of all taxes assessed against Premises, and personal property tax on demised premises. INSURANCE Tenant must have public liability insurance, fire insurance. Lessor must insure common area subject to reimbursement. UTILITIES Tenant pays for all utilities on leased premises. CAM Tenant pays pro rata share. ASSIGNMENT/SUBLETTING Requires written consent of landlord. EARLY TERMINATION None. RIGHT OF FIRST REFUSAL Lessor shall give to the lessee a notice in writing specifying terms of desire to sell property, and offer to sell it to lessee upon aforementioned terms. Tenant has 10 days to accept or reject. For 90 days thereafter, lessor is free to sell at agreed upon terms. This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 9

Tenant Overview ABOUT IHOP For 60 years, the IHOP family restaurant chain has served its world famous pancakes and a wide variety of breakfast, lunch, and dinner items that are loved by people of all ages. IHOP offers its guests an affordable, everyday dining experience with warm and friendly service. As of December 2017, there were 1,786 IHOP restaurants in all 50 states and the District of Columbia, as well as in Bahrain, Canada, Dubai (UAE), Guatemala, Kuwait, Mexico, Puerto Rico, Saudi Arabia, The Philippines and the U.S. Virgin Islands. In 2017 alone, they added 50 restaurants. The company is owned by DineEquit and 99% of the restaurants are run by independent franchisees. DineEquit saw slaes of over $604.8 million in fiscal 2017. 1,786 LOCATIONS THROUGHOUT WESTERN U.S. $604.8 Million DINEEQUIT 2017 SALES This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 10

Site Plan FLORIN ROAD 56,296 99 ON RAMP NOT A PART MARKET RESTAURANT MISC. EAST PARKWAY 10,420 CIRCLE PARKWAY This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 11

Signage 12-0 3-1 1/2 5-6 11-6 AMERICAN FURNITURE G A L L E R I E S 1-8 AMERICAN FURNITURE G A L L E R I E S RED STAR INTERNATIONAL GROCERIES HAIR SALON CLEANERS SMOKE SHOP 22-0 5-6 4750-4770 1-9 RED STAR INTERNATIONAL GROCERIES SIMULATED NIGHT VIEW 1-9 HAIR SALON CLEANERS SMOKE SHOP 4750-4770 2'-0" 2'-0" 2-0 COLOR GUIDE DUNN- EDWARDS PRAIRIE LAND (DET489) MAIN SIGN - FRONT ELEVATION 3/16 THICK WHITE LEXAN FACES ALUMINUM SIGN CABINET W/ TEXCOTE PAINTED DUNN- EDWARDS PRAIRIE LAND (DET489) ALUMINUM CAP AND TRIM W/ TEXCOTE PAINTED DUNN-EDWARDDS ESPRESSO MACCHIATO (DET680) 1/2 THICK CLEAR ACRYLIC ADDRESS # S W/ PAINTED WHITE, SATIN FINISH ALUMINUM BASE W/ MASONARY STACKED STONE TOTAL SQFT: 264 SCALE: 1/4 = 1 DUNN-EDWARDDS ESPRESSO MACCHIATO (DET680) This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. THIS PACKAGE IS CURRENTLY UNDER APPLICATION BY THE LANDLORD AND PROJECTED FOR INSTALLATION IN 2019. 12

Demographics POPULATION 1-MILE 3-MILES 5-MILES 2010 23,004 180,283 359,050 2018 24,750 192,133 382,996 2023 25,987 201,145 402,016 2018 HH INCOME 1-MILE 3-MILES 5-MILES Average $51,021 $52,403 $72,907 SACRAMENTO SACRAMENTO Median $36,946 $39,793 $52,855 TOP EMPLOYERS IN SACRAMENTO VALLEY EMPLOYER State of California 69,469 Sacramento County 10,634 UC Davis Health System 9,985 Sutter Health Sacramento Sierra Region 6,507 Intel Corp. 6,000 THE AVERAGE HOUSEHOLD INCOME WITHIN A 5-MILE RADIUS IS OVER $72K This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 13

Location Overview SACRAMENTO, CALIFORNIA SACRAMENTO, CA SACRAMENTO is the capital city of California, the sixthlargest city in the state, and the 35th largest city in the United States. The urban Sacramento area has a population of 1.44 million while the Sacramento Valley, which includes ten counties, has an estimated population of 2.66 million. Sacramento is one of the most historic cities in California, boasting an impressive array of museums, landmarks, parks, amenities, and more. California State University, Sacramento, is located in downtown Sacramento and offers 151 Bachelor s degrees, 69 Master s degrees, 28 teaching credentials, and 2 Doctoral degrees. There are over 30,500 students enrolled annually. SACRAMENTO ECONOMY The Sacramento Valley is located in the Central Valley, which is comprised of ten Northern California counties. Government and transportation are key sectors of the economy. Technology-related companies such as Intel and Hewlett-Packard have increasingly been drawn to Sacramento based on proximity to research centers and a well-educated labor pool. Other economic drivers include health services, hospitality, education & construction. 2.66 MILLION SACRAMENTO VALLEY POPULATION (ESTIMATED) This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 14

We d love to hear from you. DAVE LUCAS dlucas@capitalpacific.com PH: 415.274.7390 CA BRE# 01389761 CAPITAL PACIFIC COLLABORATES. CLICK HERE TO MEET OUR SAN FRANCISCO TEAM: ZEB RIPPLE JOHN ANDREINI ZANDY SMITH JUSTIN SHARP CHRIS KOSTANECKI JOE CACCAMO RICK SANNER CHRIS PETERS DAVE LUCAS JACK NAVARRA This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.