CHECKERS DRIVE-IN RESTAURANT 3232 Clarksville Pike, Nashville, Tennessee PDF Free Download

REPRESENTATIVE PHOTO CURRENTLY UNDER CONSTRUCTION CHECKERS DRIVE-IN RESTAURANT 3232 Clarksville Pike, Nashville, Tennessee 37218 OFFERING MEMORANDUM

EXCLUS IVELY LISTED BY: OF MARCUS & MILLICHAP www.caprates.com ROEE BEN-MOSHE Miami Office (786) 522-7083 Rbenmoshe@marcusmillichap.com LEEOR BEN-MOSHE Miami Office (786) 522-7059 Lbenmoshe@marcusmillichap.com CHECKERS DRIVE-IN RESTAURANT OFFERING MEMORANDUM

CONFIDENTIALITY & DISCLAIMER STATEMENT The information contained in the following 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, PCB's 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. Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. 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 newly-constructed 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. CHECKERS DRIVE-IN RESTAURANT OFFERING MEMORANDUM

TABLE OF CONTENTS PRICING & FINANCIAL ANALYSIS Investment Highlights 6 Executive Summary 7 Company Overview 9 PROPERTY DESCRIPTION Physical Description 11 Aerial Map 14 Regional Map 15 DEMOGRAPHIC ANALYSIS City Overview 18 Executive Summary 20

REPRESENTATIVE PHOTO CURRENTLY UNDER CONSTRUCTION

CHECKERS DRIVE-IN RESTAURANT 3232 Clarksville Pike, Nashville, Tennessee 37218

REPRESENTATIVE PHOTO BRAND NEW 20-YEAR LEASE ABSOLUTE TRIPLE-NET ZERO LANDLORD RESPONSIBILITIES BRAND NEW CONSTRUCTION BRAND NEW PROTOTYPE TAX FREE STATE COMPLETION SCHEDULED IN EARLY 2017 EXPERIENCED FRANCHISEE WITH STRONG NET WORTH RARE 2 PERCENT ANNUAL BUMPS LOCATED ON MAIN RETAIL CORRIDOR OVER 38,000 VEHICLES PER DAY OVER 150,000 RESIDENTS WITHIN 3 MILES OVER $50,000 IN HOUSEHOLD INCOME WITHIN 5 MILES CONVENIENT INGRESS AND EGRESS SINGLE-TENANT NET-LEASED ASSET Marcus & Millichap is pleased to offer this Checker s property paired with an absolute net 20-Year lease with zero landlord responsibilities. Checkers Drive-In Restaurants, Inc., is one of the largest chains of double drive-thru restaurants in the United States. The company operates Checkers and Rally's restaurants in 28 states and the District of Columbia. They specialize in hamburgers, hot dogs, french fries, and milkshakes. 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2017 Marcus & Millichap Activity ID X0390975

CHECKERS DRIVE-IN RESTAURANT 3232 Clarksville Pike, Nashville, Tennessee 37218 RENT SCHEDULE YEAR 1 ANNUAL RENT $139,821 MONTHLY RENT $11,651 CAP RATE 6.00% YEAR 2 $142,618 $11,884 6.12% LIST PRICE CAP RATE AVERAGE 20-YEAR CAP RATE INCREASES LEASE TERM OPTIONS LOT SIZE YEAR BUILT TYPE OF OWNERSHIP GUARANTY TRAFFIC COUNTS $2,330,362 6.00% 7.29% 2% Annual Increases 20 Years Three 5-Year Options 30,492 SF or 0.70 Acre 2016/2017 Fee Simple Franchisee Over 38,000 cars per day YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 YEAR 11 YEAR 12 $145,470 $148,379 $151,347 $154,374 $157,461 $160,610 $163,822 $167,219 $170,561 $173,972 $12,122 $12,364 $12,612 $12,864 $13,121 $13,384 $13,651 $13,934 $14,213 $14,497 6.24% 6.37% 6.49% 6.62% 6.76% 6.89% 7.03% 7.18% 7.32% 7.47% YEAR 13 $177,451 $14,787 7.61% YEAR 14 $180,000 $15,083 7.77% YEAR 15 $184,694 $15,391 7.93% YEAR 16 $188,387 $15,698 8.08% YEAR 17 $192,155 $16,012 8.25% YEAR 18 $195,998 $16,333 8.41% YEAR 19 $199,918 $16,659 8.58% YEAR 20 $203,916 $16,993 8.75% NET OPERATING INCOME $139,821 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2017 Marcus & Millichap Activity ID X0390975

Checkers Drive-In Restaurants, Inc., is one of the largest chains of double drive-thru restaurants in the United States. The company operates Checkers and Rally's restaurants in 28 states and the District of Columbia. They specialize in hamburgers, hot dogs, french fries, and milkshakes. Checkers and Rally's had similar concepts, being almost exclusively drive-thru with very little seating. After the merger, Rally's began redesigning its restaurants to follow the Checkers look. Today, Checkers and Rally's restaurants look nearly identical, the only major difference being the name on the sign. In June 2006, the company went private through a merger with Taxi Holdings Corp., an affiliate of Wellspring Capital Management, a private equity firm. In 2014, Wellspring sold Checkers to another private equity firm, Sentinel Capital Partners. OWNERSHIP FOUNDED S & P RATING OWNER NUMBER OF LOCATIONS HEADQUARTERED WEBSITE CEO PRIVATE 1985 B- SENTINEL CAPITAL PARTNERS 800+ TAMPA, FLORIDA WWW.CHECKERS.COM / WWW.RALLYS.COM ENRIQUE SILVA 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2017 Marcus & Millichap Activity ID X0390975

REPRESENTATIVE PHOTO CURRENTLY UNDER CONSTRUCTION

CHECKERS DRIVE-IN RESTAURANT 3232 Clarksville Pike, Nashville, Tennessee

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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2017 Marcus & Millichap Activity ID X0390975

37 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2017 Marcus & Millichap Activity ID X0390975

REPRESENTATIVE PHOTOS

CHECKERS DRIVE-IN RESTAURANT 3232 Clarksville Pike, Nashville, Tennessee

Nashville is the capital of the U.S. state of Tennessee and the county seat of Davidson County. It is located on the Cumberland River in the north central part of the state. The city is a center for the music, healthcare, publishing, banking and transportation industries, and home to numerous colleges and universities. Reflecting the city's position in state government, Nashville is home to the Tennessee Supreme Court's courthouse for Middle Tennessee. It is known as a center of the country music industry, earning it the nickname "Music City U.S.A." According to 2015 estimates from the U.S. Census Bureau, the total consolidated city-county population stood at 678,889. The "balance" population, which excludes semi-independent municipalities within Nashville, was 654,610. The 2015 population of the entire 13-county Nashville metropolitan area was 1,830,345, making it the largest metropolitan statistical area in the state. The 2015 population of the Nashville-Davidson Murfreesboro Columbia combined statistical area, a larger trade area, was 1,951,644. POPULATION DENSITY INCORPORATED COUNTY TIME ZONE AREA CODES WEBSITE MAYOR 1,830,345 1,300/SQ MI 1806 DAVIDSON EST (UTC 6) 615 AND 629 WWW.NASHVILLE.GOV MEGAN BARRY 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2017 Marcus & Millichap Activity ID X0390975

3 Miles 5 Miles 7 Miles 2010 Population 46,947 145,255 230,579 2014 Population 50,154 153,499 243,495 2019 Population 50,537 154,991 245,203 2010 Households 17,249 56,616 94,562 2014 Households 18,808 60,790 101,057 2019 Households 19,204 62,357 103,054 2014 Average Household Size 2.38 2.21 2.19 2014 Daytime Population 36,936 171,236 222,397 2014 Owner Occupied Housing Units 44.99% 42.30% 49.40% 2014 Renter Occupied Housing Units 55.01% 57.70% 50.60% 2014 Vacant 7.50% 7.48% 6.36% 2019 Owner Occupied Housing Units 44.90% 42.27% 49.26% 2019 Renter Occupied Housing Units 55.10% 57.73% 50.74% 2019 Vacant 7.30% 7.69% 6.44% $ 0 - $14,999 27.6% 24.3% 20.2% $ 15,000 - $24,999 17.3% 15.7% 14.4% $ 25,000 - $34,999 13.8% 13.6% 12.8% $ 35,000 - $49,999 13.5% 13.6% 13.3% $ 50,000 - $74,999 14.0% 14.2% 14.9% $ 75,000 - $99,999 6.6% 7.3% 8.9% $100,000 - $124,999 3.6% 4.1% 5.2% $125,000 - $149,999 1.4% 2.2% 2.7% $150,000 - $199,999 0.9% 2.1% 2.8% $200,000 - $249,999 0.6% 1.2% 1.7% $250,000 + 0.8% 2.0% 3.0% 2014 Median Household Income $28,301 $32,162 $37,458 2014 Per Capita Income $17,626 $22,948 $28,107 2014 Average Household Income $42,643 $54,438 $65,261 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2017 Marcus & Millichap Activity ID X0390975

In 2014, the population in your selected geography is 243,495. The population has changed by 4.90% since 2000. It is estimated that the population in your area will be 245,203 five years from now, which represents a change of 0.70% from the current year. The current population is 47.85% male and 52.14% female. The median age of the population in your area is 33.1, compare this to the Entire US average which is 37.3. The population density in your area is 1,580.79 people per square mile. Households - There are currently 101,056 households in your selected geography. The number of households has changed by 8.64% since 2000. It is estimated that the number of households in your area will be 103,053 five years from now, which represents a change of 1.97% from the current year. The average household size in your area is 2.19 persons. Income - In 2014, the median household income for your selected geography is $37,458, compare this to the Entire US average which is currently $51,972. The median household income for your area has changed by 14.16% since 2000. It is estimated that the median household income in your area will be $42,688 five years from now, which represents a change of 13.96% from the current year. The current year per capita income in your area is $28,107, compare this to the Entire US average, which is $28,599. The current year average household income in your area is $65,260, compare this to the Entire US average which is $74,533. Race & Ethnicity - The current year racial makeup of your selected area is as follows: 53.02% White, 39.92% Black, 0.04% Native American and 2.42% Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 4.61% of the current year population in your selected area. Compare this to the Entire US average of 17.13%. Housing - In 2000, there were 48,498 owner occupied housing units in your area and there were 44,516 renter occupied housing units in your area. The median rent at the time was $463. Employment - In 2014, there are 222,396 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 62.76% of employees are employed in white-collar occupations in this geography, and 37.09% are employed in blue-collar occupations. In 2014, unemployment in this area is 7.89%. In 2000, the average time traveled to work was 22.1 minutes. 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2017 Marcus & Millichap Activity ID X0390975