Burger King - Cabazon Dinosaur Park

Burger King - Cabazon Dinosaur Park OFFERING MEMORANDUM

CONFIDENTIALITY AND DISCLAIMER 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. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

NET LEASED DISCLAIMER 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.

TABLE OF CONTENTS Section 1 PRICING AND FINANCIAL ANALYSIS Section 2 PROPERTY DESCRIPTION Section 3 DEMOGRAPHIC ANALYSIS

PRICING AND FINANCIAL ANALYSIS Burger King - Cabazon Dinosaur Park

PRICING AND FINANCIAL ANALYSIS FINANCING Existing Financing Loan Type Free and Clear 1

PRICING AND FINANCIAL ANALYSIS FINANCIAL OVERVIEW Location 50900 Seminole Drive Cabazon, CA 92230 Price $991,000 Down Payment 100% / $991,000 Rentable Square Feet 3,521 Price/SF $281.45 CAP Rate 5.75% Year Built 1998 Lot Size Type of Ownership 0.22 ACS Fee Simple Annualized Operating Data Rent Increases Annual Rent Monthly Rent Base Rent $57,000.00 $4,750.00 Option 1 Option 2 Base Rent ($16.19/SF) $57,000 Net Operating Income $57,000 Total Return 5.75% / $57,000 Tenant pays to landlord the greater of the base rent or eight and one half percent of the gross sales of the store. Tenant Summary Tenant Trade Name Ownership Tenant Lease Guarantor Lease Type Roof and Structure Lease Term Burger King Private Franchisee Franchisee Guarantee Absolute Net Tenant Responsible 10 Years Lease Commencement Date 7/1/2013 Rent Commencement Date 7/1/2013 Lease Expiration Date 6/30/2023 Term Remaining on Lease Increases Options 10 Years Percentage Rents Two Five-Year Options 2

PRICING AND FINANCIAL ANALYSIS TENANT OVERVIEW Property Name Property Address Burger King - Cabazon Dinosaur Park 50900 Seminole Drive Cabazon, CA 92230 Property Type Net Leased Restaurant Fast Food Rentable Square Feet 3,521 Tenant Trade Name Ownership Tenant Lease Guarantor Burger King Private Franchisee Franchisee Guarantee Lease Commencement Date 7/1/2013 Rent Commencement Date 7/1/2013 Lease Expiration Date 6/30/2023 Term Remaining on Lease Lease Type Roof and Structure Lease Term Increases 10 Years Absolute Net Tenant Responsible 10 Years Percentage Rents Options to Renew Two Five-Year Options No. of Locations 80+ Web Site www.bk.com Franchisee Profile Years in the Business Founded 1979 With more than 80 Burger King locations throughout California, California Food Management (CFM) has established itself as one of the most prominent operators of Burger Kings in California. CFM plans to extend their operations into more than 100 stores by the end of the year. 3

PROPERTY DESCRIPTION Burger King - Cabazon Dinosaur Park

PROPERTY DESCRIPTION INVESTMENT OVERVIEW Investment Highlights Absolute Net Lease, No Management Responsibilities Outparcel to Mechanical Dinosaur Park Located One and One Half Miles from Casino Morongo New 10-Year Lease Accessible Directly off Freeway Excellent Freeway Visibility Marcus & Millichap is pleased to offer for sale to qualified investors a Burger King property located in Cabazon, California. The site is operated by California Food Management, one of the premier operators of Burger King properties in California, with 82 stores in the area. California Food Management acquired this and 20 other locations within the last month, and plans to operate more than 100 stores by the end of the year. Cabazon is a small desert community, supported primarily by its proximity to Morongo Casino Resort and Spa. The property enjoys excellent visibility off the 10 Freeway, and sits just one exit away from the casino. Additionally, the Burger King is the first thing drivers see when they exit the freeway. The subject property's proximity to the casino is not the sole draw to the area. The property sits as a pad to the Cabazon Dinosaur Park, featuring the world's largest collection of mechanical dinosaurs. Sitting in front of a towering, threestory Tyrannosaurus Rex and a 150-foot Apatosaurus, this Burger King is hard to miss. 5

PROPERTY DESCRIPTION PROPERTY SUMMARY The Offering Property Burger King - Cabazon Dinosaur Park Property Address 50900 Seminole Drive Cabazon, CA 92230 Assessor's Parcel Number 519-190-031-7 Zoning C-P-S Site Description Number of Stories One Year Built 1998 Rentable Square Feet 3,521 Lot Size 0.22 ACS Type of Ownership Fee Simple 6

PROPERTY DESCRIPTION PROPERTY PHOTOS 7

PROPERTY DESCRIPTION AREA MAPS Local Map Regional Map 8

PROPERTY DESCRIPTION SITE PLAN 9

PROPERTY DESCRIPTION AERIAL PHOTO 10

DEMOGRAPHIC ANALYSIS Burger King - Cabazon Dinosaur Park

DEMOGRAPHIC ANALYSIS DEMOGRAPHIC REPORT 1 Mile 3 Miles 5 Miles 1990 Population 585 1,836 3,188 2000 Population 737 2,460 4,022 2010 Population 808 2,736 4,666 2012 Population 843 2,855 4,869 2017 Population 922 3,122 5,321 1990 Households 214 739 1,162 2000 Households 235 791 1,284 2010 Households 247 858 1,507 2012 Households 256 890 1,563 2017 Households 276 960 1,687 2012 Average Household Size 3.28 3.20 3.09 2012 Daytime Population 2,266 7,050 8,464 1990 Median Housing Value $63,046 $65,381 $66,599 2000 Median Housing Value $64,753 $67,661 $80,359 2000 Owner Occupied Housing Units 58.19% 60.05% 58.27% 2000 Renter Occupied Housing Units 27.50% 25.27% 24.87% 2000 Vacant 14.31% 14.69% 16.86% 2012 Owner Occupied Housing Units 48.38% 49.33% 51.08% 2012 Renter Occupied Housing Units 36.41% 35.56% 30.79% 2012 Vacant 15.21% 15.12% 18.12% 2017 Owner Occupied Housing Units 44.12% 45.02% 46.71% 2017 Renter Occupied Housing Units 42.03% 41.23% 36.56% 2017 Vacant 13.85% 13.75% 16.74% $ 0 - $14,999 5.0% 14.7% 15.6% $ 15,000 - $24,999 27.2% 20.8% 16.8% $ 25,000 - $34,999 12.9% 12.8% 10.4% $ 35,000 - $49,999 38.5% 26.1% 23.4% $ 50,000 - $74,999 8.9% 8.2% 9.1% $ 75,000 - $99,999 1.6% 10.7% 10.0% $100,000 - $124,999 2.8% 2.3% 5.3% $125,000 - $149,999 0.2% 0.2% 1.7% $150,000 - $199,999 0.0% 0.0% 1.2% $200,000 - $249,999 0.0% 0.0% 0.6% $250,000 + 2.8% 4.3% 5.7% 2012 Median Household Income $36,141 $35,545 $37,485 2012 Per Capita Income $14,843 $18,806 $23,666 2012 Average Household Income $47,345 $58,842 $69,357 Demographic data 2010 by Experian/Applied Geographic Solutions. 12

DEMOGRAPHIC ANALYSIS SUMMARY REPORT Geography: 5 Miles Population In 2012, the population in your selected geography was 4,869. The population has changed by 21.05% since 2000. It is estimated that the population in your area will be 5,321 five years from now, which represents a change of 9.29% from the current year. The current population is 49.8% male and 50.1% female. The median age of the population in your area is 34.2, compare this to the U.S. average which is 36.9. The population density in your area is 61.99 people per square mile. Households There are currently 1,563 households in your selected geography. The number of households has changed by 21.75% since 2000. It is estimated that the number of households in your area will be 1,687 five years from now, which represents a change of 7.93% from the current year. The average household size in your area is 3.08 persons. Income In 2012, the median household income for your selected geography is $37,485, compare this to the U.S. average which is currently $53,620. The median household income for your area has changed by 44.11% since 2000. It is estimated that the median household income in your area will be $41,064 five years from now, which represents a change of 9.54% from the current year. The current year per capita income in your area is $23,666, compare this to the U.S. average, which is $28,713. The current year average household income in your area is $69,357, compare this to the U.S. average which is $73,458. Race & Ethnicity The current year racial makeup of your selected area is as follows: 54.86% White, 4.90% African American, 14.61% Native American and 2.41% Asian/Pacific Islander. Compare these to U.S. averages which are: 72.40% White, 12.60% African American, 0.95% Native American and 4.93% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 39.03% of the current year population in your selected area. Compare this to the U.S. average of 16.90%. Housing The median housing value in your area was $80,359 in 2000, compare this to the U.S. average of $110,796 for the same year. In 2000, there were 900 owner occupied housing units in your area and there were 384 renter occupied housing units in your area. The median rent at the time was $432. Employment In 2012, there are 8,464 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 40.1% of employees are employed in white-collar occupations in this geography, and 59.8% are employed in blue-collar occupations. In 2012, unemployment in this area is 9.16%. In 2000, the median time traveled to work was 22.4 minutes. Demographic data 2010 by Experian/Applied Geographic Solutions. 13

DEMOGRAPHIC ANALYSIS POPULATION DENSITY Demographic data 2010 by Experian/Applied Geographic Solutions. Number of people living in a given area per square mile. 14

DEMOGRAPHIC ANALYSIS EMPLOYMENT DENSITY Demographic data 2010 by Experian/Applied Geographic Solutions. The number of people employed in a given area per square mile. 15

DEMOGRAPHIC ANALYSIS AVERAGE HOUSEHOLD INCOME Demographic data 2010 by Experian/Applied Geographic Solutions. Average income of all the people 15 years and older occupying a single housing unit. 16

OFFERING MEMORANDUM Offices Nationwide www.marcusmillichap.com Exclusively Listed By: Lior Regenstreif Vice President Investments Senior Director, Net Leased Properties Group Encino Office License: CA 01267761 Tel: (818)212-2730 Fax: (818)212-2710 Lior.Regenstreif@marcusmillichap.com www.marcusmillichap.com/liorregenstreif