REPRESENTATIVE PHOTO OFFERING MEMORANDUM Presented By: APPLEBEE S ABSOLUTE NNN LEASE 328 23RD ST, COLUMBUS, NE 68601 JACOB ABUSHARKH MANAGING PRINCIPAL T: 415.269.2474 E: jacob@thekasegroup.com NE Lic.#20160307
DISCLAIMER & CONFIDENTIALITY The material contained in this Investment Offering Brochure is furnished solely for the purpose of considering the purchase of the property within and is not to be used for any other purpose. This information should not, under any circumstances, be photocopied or disclosed to any third party without the written consent of The Kase Group or Owner, or used for any purpose whatsoever other than to evaluate the possible purchase of the Property. The only party authorized to represent the Property Owner ( Owner ) in connection with the sale of the Property is The Kase Group Advisor listed in this proposal, and no other person is authorized by the Owner to provide any information or to make any representations other than contained in this Investment Offering Brochure. If the person receiving these materials does not choose to pursue a purchase of the Property, this Offering Brochure must be returned to The Kase Group. Neither The Kase Group Advisor nor the Owner make any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied upon as a promise or representation as to the future performance of the Property. This Offering Brochure may include certain statements and estimates by The Kase Group with respect to the projected future performance of the Property. These Assumptions may or may not be proven to be correct, and there can be no assurance that such es mates will be achieved. Further, The Kase Group Advisor and the Owner disclaim any and all liability for representations or warranties, ex- pressed or implied, contained in or omitted from this Investment Offering Brochure, or any other written or oral communication transmitted or made available to the recipient. The recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any final, fully executed and delivered Real Estate Purchase Agreement between it and Owner. The information contained herein is subject to change without notice and the recipient of these materials shall not look to Owner or The Kase Group Advisor, nor any of their officers, employees, representatives, independent contractors or affiliates, for the accuracy or completeness thereof. Recipients of this Investment Offering Brochure are advised and encouraged to conduct their own comprehensive review and analysis of the Property. This Investment Offering Brochure is a solicitation of interest only and is not an offer to sell the Property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest to purchase the Property and expressly reserves the right, at its sole discretion, to terminate negotiations with any entity, for any reason, at any me with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the Investment Offering Brochure or making an offer to purchase the Property unless and un l the Owner executes and delivers a signed Real Estate Purchase Agreement on terms accept- able to Owner, in Owner s sole discretion. By submitting an offer, a prospective purchaser will be deemed to have acknowledged the foregoing and agreed to release the Owner and The Kase Group Advisor from any liability with respect thereto. To the extent Owner or any agent of Owner corresponds with any prospective purchaser, any prospective purchaser should not rely on any such correspondence or statements as binding Owner. Only a fully executed Real Estate Purchase Agreement shall bind the property and each prospective purchaser proceeds at its own risk. WWW.THEKASEGROUP.COM APPLEBEE S COLUMBUS, NE
TABLE OF CONTENTS 4 INVESTMENT OVERVIEW 5 FINANCIAL SUMMARY 6 TENANT OVERVIEW 7 LOCATION AERIAL 8 DEMOGRAPHICS 9 AREA OVERVIEW JACOB ABUSHARKH MANAGING PRINCIPAL T: 415.269.2474 E: jacob@thekasegroup.com NE Lic.#20160307 WWW.THEKASEGROUP.COM APPLEBEE S COLUMBUS, NE
INVESTMENT OVERVIEW Subject property is a 4,871 square foot Applebee s restaurant located in Columbus, Nebraska. The lease is a brand new 15 year NNN and is guaranteed by the second largest Applebee s operator in the country. There are scheduled 1.5% annual increases in rent and calls for zero landlord obligations. This asset is situated in a major retail trade area and surrounded by national retailers including Walmart Supercenter, Menards, and many more. INVESTMENT HIGHLIGHTS NEW 15 YEAR ABSOLUTE NNN LEASE 100% FEE SIMPLE INTEREST ZERO LANDLORD OBLIGATIONS ANNUAL INCREASES IN RENT NEARBY MAJOR RETAILERS WALMART SUPERCENTER, AND MENARDS LESS THAN 2 MILES FROM COLUMBUS AIRPORT HEALTHY RENT TO SALES RATIO GUARANTEED BY 2ND LARGEST APPLEBEE S OPERATOR OFFERING SPECIFICATIONS PRICE $2,397,644 NET OPERATING INCOME $161,841 CAP 6.75% SQUARE-FOOTAGE 4,871 LOT SIZE 59,183 YEAR RENOVATED 2012 WWW.THEKASEGROUP.COM APPLEBEE S COLUMBUS, NE 4
FINANCIAL SUMMARY APPLEBEE S ABSOLUTE NNN LEASED OFFERING 328 23RD ST, COLUMBUS, NE 68601 FEE SIMPLE OWNERSHIP $2,397,644 6.75% CAP SUMMARY OPERATING SUMMARY NET OPERATING INCOME CAP RATE TENANT NAME APPLEBEE S - RMH ENTERPRISES 2017 $161,841 6.75% SQUARE FOOTAGE 4,871 LEASE START 10/01/2017 LEASE END 09/30/2032 ANNUAL RENT $161,841 2018 $164,269 6.85% 2019 $166,733 6.95% 2020 $169,234 7.06% 2021 $171,772 7.16% OPTIONS INCREASES FOUR, 5 YEAR THE LESSER OF 1.5%, OR 1.25 X THE CHANGE IN CPI WWW.THEKASEGROUP.COM APPLEBEE S COLUMBUS, NE 5
TENANT OVERVIEW ABOUT APPLEBEE S Founded nearly three decades ago on the principles of exceptional value and family fun, Applebee s Services, Inc., operates what is today the largest casual-dining chain in the world. This prominent eatery draws people of all ages and lifestyles with its fun, familyfriendly atmosphere and signature bar and grill menu. Applebee s continues to grow and prosper, and further differentiates itself with innovative attractions, like the popular Carside to Go service available at many of its restaurants. And the company continually works to add greater value and broaden its appeal, as evidenced by the It s a Whole New Neighborhood campaign, which launched in the spring of 2008, indicative of a fresh, re-energized approach and the promise of new, enticing menu items. Applebee s Services Inc., and its affiliates, franchise and operate restaurants under Applebee s Neighborhood Grill & Bar and are a DineEquity, Inc. (NYSE: DIN) brand. Currently, there are over 1990 Applebee s restaurants operating system-wide in 49 states, 15 international countries and one U.S. territory. The Applebee s system employs approximately 28,000 employees company-wide. ABOUT RMH FRANCHISE RMH Franchise Holdings, Inc. is the second largest Applebee s franchisee in the United States, currently operating 174 Applbee s locations across 15 states. The company acquired its first Applbee s location in December 2012 and has been growing in size and operating locations ever sine. In October 2013, RMH acquired an additional 80 locations, securing itself as one of the top Applebee s franchisees. Headquarted in Lincoln, Nebraska, RMH currently employs over 7,000 people and has plans for future Applebee s acquisitions. 174 LOCATIONS 7,000 + EMPLOYEES RMH is wholly owned by ACON Franchise Holdings (AFH), a subsidiary of ACON Investments. ACON formed AFH in December 2012 to pursue selected deep value opportunities in the franchised restaurant sector. The platform evaluates opportunities of well established brands in teh casual dining, quick casual, and QSR sectors. They seek to find value-oriented franchise opportunties in well-established brands where they believe management can achieve restorative growth through identifiable operational initiatives. RMH was their first deal. EXCELLENT DEMOGRAPH- $ PRIVATE- LY WWW.THEKASEGROUP.COM APPLEBEE S COLUMBUS, NE 6
LOCATION AERIAL WWW.THEKASEGROUP.COM APPLEBEE S COLUMBUS, NE 7
DEMOGRAPHICS 3 MILES 5 MILES 10 MILES TOTAL POPULATION 23,042 27,394 30,695 NUMBER OF HOUSEHOLDS 9,171 10,820 12,106 AVERAGE HOUSEHOLD INCOME $53,813 $55,900 $57,185 MEDIAN AGE 37.90 38.20 38.60 WWW.THEKASEGROUP.COM APPLEBEE S COLUMBUS, NE 8
AREA OVERVIEW DEMOGRAPHICS 3 MILES 5 MILES 10 MILES TOTAL POPULATION 23,042 27,394 30,695 TOTAL NUMBER HOUSEHOLDS 9,171 10,820 12,106 COLUMBUS, NEBRASKA Columbus is a city in and the county seat of Platte County, in the state of Nebraska in the Midwestern United States. Columbus is located 85 miles west of Omaha and 75 miles northwest of Lincoln. It is on the north side of the Loup River near its confluence with the Platte River. U.S. Highways 30 and 81 intersect in the city, and the main line of the Union Pacific railroad passes through it. TOTAL NO. PERSONS PER HOUSEHOLD 2.50 2.50 2.50 AVERAGE HOUSE VALUE $135,428 $140,595 $142,444 AVERAGE HOUSEHOLD INCOME $53,813 $55,900 $57,185 AVERAGE AGE 37.90 38.20 38.60 POPULATION WHITE 21,875 26,069 29,294 POPULATION BLACK 219 256 282 POPULATION AM. INDIAN & ALASKAN 362 397 412 POPULATION ASIAN 237 270 288 POPULATION HAWAIIAN & PACIFIC ISLAND 43 52 52 POPULATION OTHER 306 350 366 WWW.THEKASEGROUP.COM APPLEBEE S COLUMBUS, NE 9
COLUMBUS NEBRASKA OFFERING MEMORANDUM APPLEBEE S ABSOLUTE NNN LEASE 328 23RD ST, COLUMBUS, NE 68601 JACOB ABUSHARKH MANAGING PRINCIPAL T: 415.269.2474 E: jacob@thekasegroup.com NE Lic.#20160307 WWW.THEKASEGROUP.COM