Representative Photo Denny s 2455 6th Street, Limon, CO 80828 Offering Memorandum R E T A I L A D V I S O R S
CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Denny s located at 2455 6th Street, Limon, CO 80828 ( Property ). It has been prepared by Matthews Retail Advisors. This Offering Memorandum may not be allinclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Retail Advisors. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Retail Advisors expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or 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 and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Retail Advisors or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. Matthews Retail Advisors
Table of Contents Pricing & Financial Analysis Investments Highlights... 2 Executive Summary...3 Company Overview...4 Property Description Physical Description... 6 Bird s Eye...7 Regional Map... 8 Tenant Map... 9 Demographics City Overview Limon, CO...11 Demographics Report...12 EXCLUSIVELY LISTED BY: Chuck Evans Associate direct +1.310.919.5841 MOBILE +1.925.323.2263 chuck.evans@matthews.com License No. 01963473 Calvin Short Partner direct +1.310.919.5770 MOBILE +1.310.567.3525 calvin.short@matthews.com License No. 01927216 Pete Gonzalez Broker of Record License No. FA100003923
Matthews Retail Advisors Representative Photo
Pricing & Financial Analysis
Investments Highlights Attractive Lease Highlights/Long Term Stability Brand new 20 year absolute NNN lease to be signed at close of escrow - Zero Landlord Responsibilities Year 1 NOI - $72,000 5.00% increases every 5 years - Strong hedge against inflation Three (3) Five (5) year options Franchisee operates multiple Denny s locations throughout Colorado Strong National Brand 100% leased to RockyDenn, Inc. Franchisee for national tenant, Denny s (NASDAQ: DENN) Denny s inc (NASDAQ: DENN) is one of the largest full service restaurants operating in over 11 countries and has over 1,500 sites domestially Healthy 8% occupancy/sales ratio provides for long term security and healthy operating margins Ideal 1031 Exchange Opportunity Stable income stream from a corporate guaranteed property with a proven track record Bondable NNN investment; tenant is responsible for all maintenance including roof and structure Provides the opportunity for an investor to take advantage of historically low interest rates Strong Centralized Location A short 3 miles from Limon Municipal Airport Ideally located off of Interstate 70 which is the major highway connecting Denver to all Eastern Colorado Adjacent to multiple hotel chains such as Tyme Square Inn Suites and Holiday Inn Express P. 2 Matthews Retail Advisors OFFERING MEMORANDUM Denny s
Executive Summary Denny s 2455 6th Street Limon, CO 80828 List Price... $993,100 CAP Rate - Current...7.25% Gross Leasable Area...4,040 SF Lot Size...0.80 Acres ( 34,848 SF) Year Built... 2001 Annualized Operating Data Monthly Rent Annual Rent Rent/SF CAP Rate Close of Escrow - 2020 $6,000.00 $72,000.00 $17.82 7.25% 2020-2025 $6,300.00 $75,600.00 $18.71 7.61% 2025-2030 $6,615.00 $79,380.00 $19.65 7.99% 2030-2035 $6,945.75 $83,349.00 $20.63 8.39% Option 1-2035 - 2040 $7,293.04 $87,516.45 $21.66 8.81% Option 2-2040 - 2045 $7,657.69 $91,892.27 $22.75 9.25% Option 3-2045 - 2050 $8,040.57 $96,486.89 $23.88 9.72% Tenant Summary Tenant Trade Name Type of Ownership Lease Guarantor Lease Type Roof and Structure Original Lease Term Lease Commencement Date Rent Commencement Date Lease Expiration Date Term Remaining on Lease Increases Options Denny s Fee Simple Franchisee NNN Tenant Responsible 20 Years Upon Close of Escrow Upon Close of Escrow 20 Years from the Close of Escrow 20 Years 5% Every 5 Years Three (3) Five (5) Year Denny s OFFERING MEMORANDUM Matthews Retail Advisors P. 3
Company Overview Property Name Denny s Gross Leasable Area 4,040 SF Property Type Restaurant Parent Company Trade Name Denny s Ownership Public Credit Rating B+ Rating Agency Standard & Poor s Revenue $ 472,295,000 Net Income $ 32,725,000 Stock Symbol DENN Board NASDAQ No. of Locations + 1700 No. of Employees +8,300 Headquartered Spartanburg, SC Web Site www.dennys.com Year Founded 1953 Denny s is America s diner. This is where guests have gone for over 60 years now to sit back, relax and enjoy delicious, hearty meals 24/7, every day of the year. From breakfast anytime to satisfying lunches and dinners, if you re in the mood for it, chances are we re serving it. Denny s is always open, always welcoming and always serving up hearty diner food along with a mug of fresh hot coffee. So come on in anytime, park yourself in a comfortable booth, take a seat at the counter, whatever you want, because it won t take you long to understand why we re truly America s diner. Harold Butler and Richard Jezak opened a donut stand in 1953 and called it Danny s Donuts. Butler s stated promise was To serve the best cup of coffee, make the best donuts, give the best service, offer the best value and stay open 24 hours a day. Today that donut stand is a restaurant chain with a slightly different name, over 1,700 locations and a proven reputation for keeping Mr. Butler s original promise. P. 4 Matthews Retail Advisors OFFERING MEMORANDUM Denny s
Property Description
P. 6 Matthews Retail Advisors OFFERING MEMORANDUM Denny s Representative Photo
Physical Description THE OFFERING Property Name...Denny s Property Address...2455 6th Street Limon, CO 80828 Assessor s Parcel Number... 258518230102 SITE DESCRIPTION Number of Stories...One Year Built...2001 Gross Leasable Area (GLA)... 4,040 SF Lot Size... 0.80 Acres (34,848 SF) Type of Ownership...Fee Simple Parking...± 38 Surface Spaces Parking Ratio... 9.4 : 1,000 SF Landscaping...Professional Topography... Generally Level CONSTRUCTION Foundation...Concrete Slab Framing...Wood Exterior... Painted Stucco Parking Surface...Asphalt Roof...Flat Denny s OFFERING MEMORANDUM Matthews Retail Advisors P. 7
Regional Map Denny s OFFERING MEMORANDUM Matthews Retail Advisors P. 8
Tenant Map P. 9 Matthews Retail Advisors OFFERING MEMORANDUM Denny s
Demographics
City Overview Limon, CO Limon, also known as the Hub City of Eastern Colorado is the most populous town in Lincoln County. The city of Limon is well known for its prime location, at the intersection of five of Colorado s major highways all within several minutes of their own municipal airport. The major bloodlines of the state, interstate 70, U.S Highway 24, 40, 287 and State Highways 71 and 86 all pass through Limon. A major portion of truckers and shipping companies as well as vacationers travelling from the Mid-West to the West use Limon as an oasis for food, refueling and rest. With over 350 hotel rooms in Limon, it is a very convenient stop for travelers to rest their heads. Limon was originally founded in the late 1800 s along the railroad. The city was named after one of its orginal construction foreman, John Limon which translates to lemon in Spanish. With its prime location, the centrally located city grew quickly and still remains true to its original nickname of Hub City. Today, Limons history is preserved at the Limon Heritage Museum and the Limon Railroad Park. Both museums are a major attraction to families, where visitors come to learn about traditional farming equiptment, experience the old schoolhouse, wander through the historic train depot with vintage dining cars and even have some fun with an old American Indian teepee. Visitors are able to get a sneak peak into the long lost era of the great plains, ranches and wild west that colorado was founded upon. In the heart of Limon, present day downtown is full of fun activities. After being recently remodelled, Downtown Limon is lined with a variety of boutiques, eateries and antique shops. There is a city park and an urban fishing pond. A popular walking path also winds around from downtown to scenic wetlands, a calm spot for bird watching and picnics. Every year in the park or schools Limon presents several festivals and gatherings for the holidays and just for fun such as the Limon Heritage Festival. P. 11 Matthews Retail Advisors OFFERING MEMORANDUM Denny s
Demographics Report Population 3-Mile 5-Mile 10-Mile 2020 Projection 2,005 2,063 3,234 2015 Estimate 1,983 2,042 3,216 2010 Census 2,001 2,062 3,254 2000 Census 2,213 2,283 3,618 Growth 2015-2020 1.09% 1.02% 0.57% Growth 2010-2015 -0.88% -0.95% -1.18% Growth 2000-2010 -9.58% -9.72% -10.06% Households 2020 Projection 828 852 1,063 2015 Estimate 809 833 1,045 2010 Census 801 825 1,043 2000 Census 820 845 1,087 Growth 2015-2020 2.40% 2.35% 1.73% Growth 2010-2015 0.97% 0.97% 0.25% Growth 2000-2010 -2.29% -2.40% -4.03% Income $0 - $15,000 16.56% 16.69% 15.41% $15,000 - $24,999 9.77% 9.84% 9.38% $25,000 - $34,999 9.77% 9.72% 9.47% $35,000 - $49,999 16.56% 16.69% 16.27% $50,000 - $74,999 20.89% 20.77% 23.54% $75,000 - $99,999 9.15% 9.12% 8.90% $100,000 - $124,999 8.03% 7.92% 7.75% $125,000 - $149,999 5.19% 5.16% 5.07% $150,000 - $199,999 2.22% 2.28% 2.49% $200,000 - $249,999 0.49% 0.48% 0.67% $250,000 - $499,999 0.99% 0.96% 0.86% $500,000+ 0.37% 0.36% 0.29% 2015 Est. Average Household Income $60,277 $60,216 $61,103 2015 Est. Median Household Income $47,475 $47,374 $49,555 Denny s OFFERING MEMORANDUM Matthews Retail Advisors P. 12
Denny s 2455 6th Street Limon, CO 80828 OFFERING MEMORANDUM Chuck Evans Associate direct +1.310.919.5841 MOBILE +1.925.323.2263 chuck.evans@matthews.com License No. 01963473 Calvin Short Partner direct +1.310.919.5770 MOBILE +1.310.567.3525 calvin.short@matthews.com License No. 01927216 Pete Gonzalez Broker of Record License No. FA100003923 Matthews Retail Advisors 841 Apollo Street, Suite 150 El Segundo, CA 90245 www.matthews.com