CONFIDENTIALITY & DISCLAIMER STATEMENT - ?· CONFIDENTIALITY & DISCLAIMER STATEMENT ... products called…

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R E T A I L A D V I S O R SOFFERING MEMORANDUMIHOP 4725 SHOWCASE BLVD, MEMPHIS, TN 38118Matthews Retail Advisors CONFIDENTIALITY & DISCLAIMER STATEMENTThis Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of IHOP located at 4725 Showcase Blvd, Memphis, TN 38118 (Property) . I t has been prepared by Matthews Retai l Advisors . This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors . The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence. By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered. I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.A prospect ive purchaser s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.EXCLUSIVELY LISTED BY:Table of ContentsPRICING & FINANCIAL ANALYSISINVESTMENT OVERVIEW ............................................................ 2INVESTMENT HIGHLIGHTS ......................................................... 2EXECUTIVE SUMMARY .................................................................3COMPANY OVERVIEW ...................................................................4PROPERTY DESCRIPTIONPHYSICAL DESCRIPTION ..............................................................7BIRDS EYE ....................................................................................... 8REGIONAL MAP .............................................................................. 9TENANT MAP .................................................................................10DEMOGRAPHICSCITY OVERVIEW | Memphis, TN ................................................ 12DEMOGRAPHICS REPORT ......................................................... 13Gary ChouVP & Director DIRECT +1.310.919.5827 MOBILE +1.714.928.8016 gary.chou@matthews.com License No. 01911222James Jim HollemanBroker of Record License No. 235328Matthews Retail Advisors PRICING & FINANCIAL ANALYSISOFFERING MEMORANDUM | IHOPP. 2 Matthews Retail Advisors INVESTMENT OVERVIEWInvestments HighlightsSTRONG CORPORATE TENANT Corporately Guaranteed - DineEquity, Inc. is one of the largest full-service restaurant companies in the world with revenue in excess of $650 million and locations in approximately 17 countries 100% leased to national tenant, IHOP, a subsidiary of DineEquity, Inc. (NYSE: DIN) IHOP has Three (3), 5-Year Options to extend the current lease with 10% rental increases every 5 yearsEXCELLENT RETAIL LOCATION Strong Corridor of National Tenants - National tenants in area include Boost Mobile, Dollar Tree, ALDI, Taco Bell, Orion Federal Credit Union, Captain Ds, Popeyes, Sonic Drive Thru Right Off the Highway - IHOP is located just off of Interstate 240 which traffics over 168,000 vehicles per day The property is less than 3 miles away from Memphis International Airport which is the busiest cargo airport in the United StatesABSOLUTE NNN INVESTMENT Zero landlord responsibility making this investment great for out of state investors looking for passive income Matthews Retail Advisors P. 3IHOP | OFFERING MEMORANDUM PRICING ANALYSISEXECUTIVE SUMMARYIHOP4725 SHOWCASE BLVD MEMPHIS, TN 38118List Price ................................................................No Price, Auction ProcessGross Leasable Area ..........................................................................4,694 SFLot Size .................................................................. 1.08 Acres (47,085 SF)Year Built ........................................................................................................1996Annualized Operating Data - IHOPMonthly Rent Annual Rent Rent/SFCurrent - 1/12/2018 $16,956.32 $203,475.84 $43.40 Option 1: 1/13/2018 - 1/12/2023 $18,651.95 $223,823.42 $47.74 Option 2: 1/13/2023 - 1/12/2028 $20,517.15 $246,205.77 $52.52 Option 3: 1/13/2028 - 1/12/2033 $22,568.86 $270,826.34 $57.77 Tenant SummaryTenant Trade Name IHOPType of Ownership Fee SimpleLease Guarantor CorporateLease Type NNNRoof and Structure Tenant ResponsibleOriginal Lease Term 20Lease Commencement Date 1/13/1998Rent Commencement Date 1/13/1998Lease Expiration Date 1/12/2018Term Remaining on Lease 1.42Increase 10% Increases Every 5 YearsOptions Three (3), 5-Year OptionsOFFERING MEMORANDUM | IHOPP. 4 Matthews Retail Advisors COMPANY OVERVIEWFor 54 years, the IHOP (International House of Pancakes) family restaurant chain has served world famous pancakes and a wide variety of breakfast, lunch and dinner items while offering an affordable, everyday dining experience with warm and friendly service. Consumers can also enjoy a line of premium breakfast products called IHOP at HOME available at leading retailers.IHOP is a United States-based restaurant owned by DineEquity, with 99% of the restaurants run by independent franchisees. Founded in 1958 by Al and Jerry Lapin, along with early investors Al and Trudy Kallis, the first International House of Pancakes opened in the Los Angeles suburb of Toluca Lake, California. in 1961, the company began being publicly traded under the name International House of Pancakes. As of 1993, average sales per IHOP exceeded $1 million and system-wide sales of IHOP reached $1 billion in 1998.Property Name IHOPProperty Type Casual Dining RestaurantParent Company Trade Name DineEquity, IncOwnership Public Credit Rating BRating Agency Standard & PoorsRevenue 654.98 MNet Income 36.459 MStock Symbol DINBoard NYSE No. of Locations 1700No. of Employees 40,000Headquartered Glendale, CAWeb Site www.ihop.comYear Founded 1958PROPERTY DESCRIPTIONOFFERING MEMORANDUM | IHOPP. 6 Matthews Retail Advisors Matthews Retail Advisors P. 7IHOP | OFFERING MEMORANDUM PROPERTY DESCRIPTIONPHYSICAL DESCRIPTIONTHE OFFERINGProperty Name ................................................................................................. IHOPProperty Address ..............................................................4725 Showcase BlvdMemphis, TN 38118Assessors Parcel Number .......................................................07-4001-0-0236SITE DESCRIPTIONNumber of Stories .............................................................................................OneYear Built .............................................................................................................1996Gross Leasable Area (GLA) .............................................................. 4,694 SFLot Size........................................................................... 1.08 Acres (47,085 SF)Type of Ownership ...............................................................................Fee SimpleParking .................................................................................. 100 Surface SpacesParking Ratio................................................................................... 21.3 : 1,000 SFLandscaping ........................................................................................ProfessionalTopography ................................................................................... Generally LevelOFFERING MEMORANDUM | IHOPP. 8 Matthews Retail Advisors BIRDS EYE Matthews Retail Advisors P. 9IHOP | OFFERING MEMORANDUM PROPERTY DESCRIPTIONREGIONAL MAPOFFERING MEMORANDUM | IHOPP. 10 Matthews Retail Advisors TENANT MAPDEMOGRAPHICSOFFERING MEMORANDUM | IHOPP. 12 Matthews Retail Advisors DEMOGRAPHIC ANALYSISCITY OVERVIEW | Memphis, TNCity Overview | MemphisIn 2013 Memphis had a population of 653,450, making it the largest city in the state of Tennessee, the largest city on the Mississippi River, the third largest city in the Southeastern United States, and the 20th largest in the United States. The greater Memphis metropolitan area, including adjacent counties in Mississippi and Arkansas, had a 2010 population of 1,316,100. This makes Memphis the second-largest metropolitan area in Tennessee, surpassed only by metropolitan Nashville. Memphis is the youngest of Tennessees major cities.The citys central location has led to much of its business development. Located on the Mississippi River, and intersected by five major freight railroads and two Interstate Highways, I-240 and I-55, Memphis is ideally located for commerce in the transportation and shipping industry. The city is home to Memphis International Airport, the worlds second busiest cargo airport (following Hong Kong), which serves as a primary hub for FedEx Express shipping. Recently, Nike expanded their distribution center in Memphis, located 1.8 miles from the Wendys subject site, making it the single largest distribution center in the United States.Memphis is the home of three Fortune 500 companies: FedEx, AutoZone, and International Paper. With more than 10 million visitors each year and more than 60 tourist attractions, the city provides around 35 thousand jobs in tourism and hospitality in Memphis and Shelby County.Top EmployersRank EmployerNumber of Employees1 Federal Express Corporation 30,0002 Memphis City Schools 16,0003 United States Government 14,8004 Methodist Healthcare 10,0005 Baptist Memorial Healthcare Corp. 8,0006 Shelby County Government 7,1837 Memphis City Government 6,6808 Wal-Mart Stores, Inc. 6,5009 Naval Support Activity Mid-South 5,24710 Tennessee State Government 5,247 Matthews Retail Advisors P. 13IHOP | OFFERING MEMORANDUM DEMOGRAPHIC ANALYSISDEMOGRAPHICS REPORTPopulation 1-Mile 3-Mile 5-Mile2020 Projection 12,558 91,090 213,4392015 Estimate 12,199 90,526 211,9482010 Census 11,890 90,805 212,3562000 Census 10,979 96,656 224,488Growth 2000-2010 8.30% -6.05% -5.40%Growth 2010-2015 2.60% -0.31% -0.19%Growth 2015-2020 2.94% 0.62% 0.70%Households 1-Mile 3-Mile 5-Mile2020 Projection 4,286 34,770 85,7272015 Estimate 4,140 34,324 84,5102010 Census 4,000 34,019 83,6772000 Census 4,055 37,644 90,211Growth 2000-2010 -1.35% -9.63% -7.24%Growth 2010-2015 3.49% 0.90% 0.99%Growth 2015-2020 3.51% 1.30% 1.44%Income 1-Mile 3-Mile 5-Mile$0 - $15,000 17.33% 17.94% 18.15%$15,000 - $24,999 14.76% 16.59% 14.84%$25,000 - $34,999 17.28% 14.36% 13.59%$35,000 - $49,999 14.49% 14.48% 13.70%$50,000 - $74,999 19.34% 17.37% 16.08%$75,000 - $99,999 9.89% 9.14% 8.78%$100,000 - $124,999 4.18% 4.16% 4.71%$125,000 - $149,999 1.66% 2.63% 3.22%$150,000 - $199,999 0.77% 1.55% 2.77%$200,000 - $249,999 0.20% 0.63% 1.24%$250,000 - $499,999 0.08% 0.87% 2.03%$500,000+ 0.03% 0.28% 0.89%2015 Est. Average Household Income $45,413 $50,583 $60,4822015 Est. Median Household Income $35,656 $36,152 $38,745DEMOGRAPHICS REPORTMatthews Retail Advisors | 841 Apollo Street, Suite 150 | El Segundo, CA 90245 | www.Matthews.comIHOP4725 Showcase BlvdMemphis, TN 38118OFFERING MEMORANDUMGary ChouVP & Director DIRECT +1.310.919.5827 MOBILE +1.714.928.8016 gary.chou@matthews.com License No. 01911222James Jim HollemanBroker of Record License No. 235328

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