WIENERSCHNITZEL ONTARIO MILLS OFFERING MEMORANDUM

WIENERSCHNITZEL ONTARIO MILLS OFFERING MEMORANDUM

NON-ENDORSEMENT AND DISCLAIMER NOTICE 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. Â 2017 Marcus & Millichap. All rights reserved. Non-Endorsement Notice 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. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. WIENERSCHNITZEL ONTARIO MILLS Ontario, CA ACT ID Y0080933

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.

4605 Ontario Mills Parkway, Ontario, CA 91764 WIENERSCHNITZEL Table of Contents EXECUTIVE SUMMARY Offering Summary.. 6 Investment Summary.. 7 About Wienerschnitzel..... 8 FINANCIAL OVERVIEW Pricing Analysis..... 10 Property Description Property Photos.... 11 Retail Map..... 13 Local Map..... 14 ABOUT ONTARIO MILLS Summary..... 15 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. 2011 Marcus & Millichap ACT ID Y0080933

EXECUTIVE SUMMARY

4605 Ontario Mills Parkway, Ontario, CA 91764 WIENERSCHNITZEL INVESTMENT OVERVIEW Landlord Has Zero Responsibility Tenant is Responsible for All Maintenance, Repairs and Replacement Wienerschnitzel is Anchored by the Ontario Mills Mall Brand New Long Term 20 Year NNN Lease, with Two Five Year Options to Extend and 10 Percent Increases Every Five Years Easy Access of the Interstate 10 and Interstate 15 Marcus & Millichap is pleased to present for sale this Wienerschnitzel located in Ontario, California. The property is situated a few feet from the regional mall Ontario Mills. Located at the first signalized intersection immediately exiting Interstates 15 and 10, the store boasts ample visibility and exposure. Guarantor owns and operates four stores and has over 35 years of experience. Ontario Mills, is an indoor climate controlled mall providing the ultimate shopping experience with more than 200 stores boasting some of the biggest names in men's, women's and children's apparel, jewelry, sporting goods, footwear and more. Stores include Coach Factory Store, Saks Fifth Avenue OFF 5TH, Michael Kors, Restoration Hardware Outlet, The North Face, Nordstrom Rack, H&M, Forever 21, Old Navy, Tommy Hilfiger Company Store, Abercrombie & Fitch Outlet, Nike Factory Store and much more. Enjoy great restaurants including Market Broiler, Rainforest Cafe, Dave & Buster s, Johnny Rockets and Blaze Pizza. Shoppers will also enjoy laughing at the Improv Comedy Club & Dinner Theatre or enjoy movies at AMC 30 Theatres. MAJOR EMPLOYERS EMPLOYER # OF EMPLOYEES * Chariot Travelware 3,014 Steno Employment Services, Inc 2,000 Walmart 1,709 Red Robin 1,427 Chaffey College Bookstore 1,385 UPS 1,348 Merchant of Tennis, Inc 1,136 Signal 88 942 Iehp 850 Target 800 Kmart 790 Northrop Grumman Corporation 735 DEMOGRAPHICS 1-Miles 3-Miles 5-Miles 2017 Estimate Pop 3,261 54,095 280,180 2017 Census Pop 3,045 49,864 265,563 2017 Estimate HH 1,698 18,915 83,688 2017 Census HH 1,569 17,240 79,241 Median HH Income $55,908 $65,119 $66,993 Per Capita Income $39,507 $29,151 $25,189 Average HH Income $65,769 $80,613 $83,541 * # of Employees based on five mile radius 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. 2011 Marcus & Millichap ACT ID Y0080933

4605 Ontario Mills Parkway, Ontario, CA 91764 WIENERSCHNITZEL ABOUT WIENERSCHNITZEL The World s Largest Hot Dog Chain with over 50 years of proven success When our fans are craving a chili dog, they think Wienerschnitzel! Founded in 1961 by John Galardi with a single location in Southern California, Wienerschnitzel has grown to be the world s largest hot dog chain serving more than 120 million hot dogs a year; and we re über famous for our delicious secret recipe chili that we like to smother on fries, hot dogs and burgers. Plus, you can t forget about our Tastee Freez soft serve treats to round out an epic meal. Nobody should have to live without Wienerschnitzel, so you re going to be seeing a lot more of us popping up all over the country. But, we re more than the best chili dogs and corn dogs in the world. We have a responsibility to the people and the communities who have supported us for the past 50+ years, and we re passionate about sharing our successes to help make a difference in the world. We also know that our fans like to have a good time, so we re partnering with exciting brands and events in the music, fashion, and sports industries. Keep an eye out for our iconic big red W! We re a family owned company and we re going to keep it that way. We know that Wienerschnitzel holds a special place in the hearts of our fans, many who ve grown up with us, and we re committed to serving up craveable food at a great value for many generations to come. 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. 2011 Marcus & Millichap ACT ID Y0080933

FINANCIAL OVERVIEW

4605 Ontario Mills Parkway, Ontario, CA 91764 WIENERSCHNITZEL PRICING ANALYSIS OFFERING SUMMARY Property Wienerschnitzel Property Address 4605 Ontario Mills Parkway Ontario, CA 91764 Price $2,520,000 Capitalization Rate 5.00% Price/SF $920.04 PROPERTY DESCRIPTION Year Built / Renovated 1998/2017 Gross Leasable Area 2,739 SF Type of Ownership Fee Simple Lot Size 0.74 Acres LEASE SUMMARY Property Subtype Net Leased Restaurant Tenant Wienerschnitzel Rent Increases 10% Every 5-Years Guarantor Franchisee Guarantee Lease Type NNN Lease Commencement September 30, 2017 Lease Expiration December 31, 2037 Lease Term 20 Term Remaining on Lease 20 Years Renewal Options Two 5-Year Landlord Responsibility None Tenant Responsibility Yes Right of First Refusal Yes ANNUALIZED OPERATING INFORMATION INCOME $126,000 Net Operating Income RENT SCHEDULE YEAR ANNUAL RENT MONTHLY RENT RENT/SF Current $126,000 $10,500 $46.00 Years 6 10 $138,600 $11,550 $50.60 Years 11 15 $152,460 $12,705 $55.66 Years 16 20 $167,706 $13,976 $61.23 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. 2011 Marcus & Millichap ACT ID Y0080933

PROPERTY DESCRIPTION

4605 Ontario Mills Parkway, Ontario, CA 91764 WIENERSCHNITZEL PROPERTY PHOTOS Walking distance to the Ontario Mills Mall Neighbor to America s Tire Busy tire store, clients walk across to enjoy lunch 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. 2011 Marcus & Millichap ACT ID Y0080933

4605 Ontario Mills Parkway, Ontario, CA 91764 WIENERSCHNITZEL RETAIL MAP Wienerschnitzel 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. 2011 Marcus & Millichap ACT ID Y0080933

4605 Ontario Mills Parkway, Ontario, CA 91764 WIENERSCHNITZEL LOCAL MAP 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. 2011 Marcus & Millichap ACT ID Y0080933

ABOUT ONTARIO MILLS

4605 Ontario Mills Parkway, Ontario, CA 91764 WIENERSCHNITZEL SUMMARY Ontario Mills is a large enclosed shopping mall, marketed as an outlet mall. It is located in Ontario, California and it is one of the primary tourist attractions in the Inland Empire. It is located across the street from the former site of the Ontario Motor Speedway. Like all other Mills properties, it was first developed and once owned by the Mills Corporation. Ontario Mills is the first Mills landmark to have the racetrack layout and having a theme in its neighborhoods. It is one of three Mills landmarks in California that are now owned by Simon Property Group since April 2007. (The Block at Orange and Great Mall of the Bay Area are the others) One of the largest shopping malls in North America, the mall opened to the public on November 14, 1996. Ontario Mills was designed by the architectural firm, F+A Architects. The mall is near the Ontario International Airport, as well as the interchange between Ontario Freeway (Interstate 15) and the San Bernardino Freeway (Interstate 10). According to the mall's former owners, the Mills Corporation, it is the largest one level shopping mall in Western North America (there are larger malls, but they have two or more levels), standing at 1,459,702 square feet. Like other Mills malls, Ontario Mills is divided into neighborhoods. This mall has the most out of the Mills malls with ten neighborhoods. When shoppers enter at a mall's main entrances at neighborhoods 1,3 5, 6, 8 and 10, the automatic doors continuously play audio reminders of which entrance one used (in both English and Spanish) Ontario Mills, is an indoor climate controlled mall providing the ultimate shopping experience with more than 200 stores boasting some of the biggest names in men's, women's and children's apparel, jewelry, sporting goods, footwear and more. Stores include Coach Factory Store, Saks Fifth Avenue OFF 5TH, Michael Kors, Restoration Hardware Outlet, The North Face, Nordstrom Rack, H&M, Forever 21, Old Navy, Tommy Hilfiger Company Store, Abercrombie & Fitch Outlet, Nike Factory Store and much more. Enjoy great restaurants including Market Broiler, Rainforest Cafe, Dave & Buster s, Johnny Rockets and Blaze Pizza. Shoppers will also enjoy laughing at the Improv Comedy Club & Dinner Theatre or enjoy movies at AMC 30 Theatres. 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. 2011 Marcus & Millichap ACT ID Y0080933

4605 Ontario Mills Parkway Ontario, CA 91764