OFFERING MEMORANDUM McDonald s NNN Ground Lease 3226 Route 940 Mount Pocono, PA Actual Photo
TABLE OF CONTENTS 2 4 The Offering 5 Transaction Summary 6 Aerial Overview 9 Market Overview Exclusive Representation Phil DiGennaro Managing Director 203.610.1541 Phil@stream-cp.com Lic: RES 0804114 Jordan Shtulman Managing Principal 847.226.4133 Jordan@stream-cp.com Lic: 475.152062 Jonathan Wolfe Managing Principal 312.310.2798 Jonathan@stream-cp.com Lic: 475.017515 Broker of Record: Mike Antonoplos PA-RB 063105
DISCLAIMER 3 This Offering Memorandum ( Memorandum ) is intended solely for the use of prospective investors in determining whether or not to pursue the possible acquisition of the Retail Property ( the Property ) at 3226 Route 940, Mount Pocono, PA. This Memorandum is of a proprietary and confidential nature. Prospective investors and/or their advisors are expressly forbidden from sharing this information with any individuals or organizations that are not directly connected with the analysis of this investment opportunity. STREAM Capital Partners, LLC ( SCP ) has been retained as the exclusive advisor for this investment opportunity. Any and all inquiries are to be directed to SCP. By accepting this Memorandum, the recipient agrees that it will cause its directors, officers, employees and representatives to use the Memorandum and all of the information contained therein only to evaluate this specific investment opportunity and for no other purpose and shall return this Memorandum together with any copies to SCP upon request. This Memorandum contains confidential material which is non-public information. Receipt of this Memorandum constitutes your acknowledgment that you will maintain the information contained herein in strict confidence. All information contained herein has been provided by the Organization, its affiliates or other sources that SCP deems reliable; however, SCP has not independently verified any of the information, including the financial estimates and projections and selected real estate information, contained herein. This Memorandum includes information about the Organization, including selected financial information, estimates and projections that reflect various assumptions concerning anticipated results, which may or may not prove to be correct and selected real estate information which may or may not prove to be correct. Such projections and estimates may or may not be indicative of future performance, which may be significantly more or less favorable than that as reflected herein. In furnishing this Memorandum, none of the Organization, its affiliates or SCP undertakes any obligation to provide additional information or to correct or update any of the information set forth in the Memorandum. None of the Organization, its affiliates or SCP makes any representation or warranty, expressed or implied, as to the accuracy or completeness of the information contained herein in this Memorandum, or made available in connection with any further investigation of the Organization, and nothing contained herein is, or shall be relied upon as, a promise or representation, whether as to the past or the future. The recipient should rely solely on the representations and warranties made to it by the Organization or its affiliates in any executed definitive agreement. Under no circumstances should the Organization, its affiliates or any of their management, directors, shareholders, employees, customers or vendors be contacted directly.
THE OFFERING 4
TRANSACTION SUMMARY 5 Cap Rate: 4.25% Purchase Price: $2,352,941 Annual Rent: $100,000* Property Summary Address: 3226 Route 940, Mount Pocono, PA Building Size: 4,528 square feet Land Size: 1.38 acres Expansion of 29,065 sf Year Built: 1989 Lease Summary Tenant: Lease Type: Lease Commencement: Lease Expiration: Remaining Term: Renewal Option: Rent Increases: McDonald s NNN Ground Lease No Landlord Responsibilities October 17,1989 October 16, 2040 22 + Years Four (4), Five-Year 10% Every Five (5) Years Rent Schedule Option 05/22/2017-10/16/2020: $72,000 Option 1: $146,410 10/17/2020-10/16/2025: $100,000* Option 2: $161,051 10/17/2025-10/16/2030: $110,000 Option 3: $177,156 10/17/2030-10/16/2035: $121,000 Option 4: $194,872 10/17/2035-10/16/2040: $133,000 Pricing is based upon first rent increase. Buyer will receive a credit at closing for the difference in rent.
AERIAL VIEW 6
AERIAL VIEW 7
AERIAL VIEW 8 Route 940 19,000 Cars/Day
MARKET OVERVIEW Mount Pocono, PA MSA 9 Located in northeastern Pennsylvania, Mount Pocono is a relaxing escape in the majestic Pocono Mountains. Camping, hiking, and outdoor activities abound in a destination made for any nature-lover. For a spectacular view, climb to the top of Mount Pocono, where the state of New York and Mount Kittatinny can be seen through binoculars. As a result, the town serves as a local highway nexus, and as such sees a lot of tourist traffic making use of resources in the region. With tourism increasing 3.9% this year in Mount Pocono and continuing to rise, there are over 2,000 hotel rooms currently under construction. This new development will add to the three very popular water parks that already exist within the area. Recent data determined that water parks were responsible for 23% of overall tourism travel in 2015 for the immediate area. Many developers are taking advantage of this increased demand in hotels and water parks and hedging their bets on a larger influx of tourism. This McDonald s is strategically located along the area s main thoroughfare, directly benefiting from the hospitality growth. It has a strong 30 year operational history and sales reaching $3 million, both driven by tourism within the immediate area. Due to strong sales, and the long operating history, McDonald s is renewing for a brand new 24-year term and adding a second drive-through to serve the tourism driven traffic. New York City 93 mi. Demographics 1-mile 3-mile 5-mile 2017 Est. Population 932 4,317 9,184 2017 Est. Average HH Income $75,575 $77,784 $77,526
MARKET OVERVIEW Poconos Attractions 10 Four Waterparks Located in the Area 2,400 Square Miles of Lakes, Rivers & Woodlands Great Wolfe Lodge Waterpark Bushkill Falls 12 Private & Public Golf Courses 185 Slopes & Trails for Skiing in the Area Skytop Lodge Golf Course Camelback Mountain Resort 65,000 SF & 1,800 Slots 15 Family Resorts with Amenities Mount Airy Casino Caesars Poconos Resort
EXCLUSIVE REPRESENTATION Phil DiGennaro Managing Director 203.610.1541 Phil@stream-cp.com Lic: RES 0804114 Jordan Shtulman Managing Principal 847.226.4133 Jordan@stream-cp.com Lic: 475.152062 Jonathan Wolfe Managing Principal 312.310.2798 Jonathan@stream-cp.com Lic: 475.017515 Broker of Record: Mike Antonoplos PA-RB 063105 STREAM CAPITAL PARTNERS, LLC 4201 West Irving Park Raod, Suite 200 Chicago, Illinois www.stream-cp.com