Applebee's 587 Al Henderson Boulevard, Savannah, GAThis Offering Memorandum contains select information pertaining to the business and affairs of Applebee’s located at 587 Al Henderson

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O F F E R I N G M E M O R A N D U M

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e x c l u s i v e ly l i s t e d b yG A R Y C H o u

FVP & Senior Director

[email protected] (310) 919-5827MOB (714) 928-8016LIC # 01911222

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E X E C U T I V E S U M M A R Y

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Associate

[email protected] (310) 919-5828MOB (951) 616-8918LIC # 01976724

K Y L E M AT T H E W SBROKER OF RECORD

LIC # 363764

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STABILIZED INVESTMENT WITH GROWING CASH FLOW

• Stabilized Lease: ± 9 years remaining on the original lease term with three (3), five (5) year options to extend

• Zero landlord responsibilities: Tenant pays for all expenses related to taxes, insurance and maintenance

• Growing Cash Flow: 10% rental increases every 5 years and in each option

EXCELLENT NATIONAL BRAND - #1 CASUAL DINING CHAIN AND #1 FRANCHISEE WORLDWIDE

• #1 Operator in the World: Apple American Group is a Flynn Restaurant Group (FRG) entity – FRG is the largest franchise operator in the world with over 850 restaurants under management and with $1.9B in annual sales revenue

• Largest Applebee’s Franchisee: Apple Georgia, LLC is a subsidiary of Apple American Group, which is the largest Applebee’s franchisee with over 485 restaurants across 26 states under management – Apple American Group owns roughly a quarter of all Applebee’s properties worldwide

• 100% leased to a franchisee for a national tenant, Applebee’s restaurant, a subsidiary of DineEquity, Inc., which is the largest casual-dining restaurant chain in the world

STRONG REAL ESTATE FUNDAMENTALS

• Strong Corridor of National Tenants: Nearby tenants include Walmart Supercenter, GNC, IHOP, McDonald’s, Cracker Barrel, Dollar Tree, Hampton Inn, Perkins, La Quinta Inn, Quality Inn, Red Roof Inn, Hooters, Waffle House, Subway, Motel 6 and Best Western among others

• Accessible Highway Traffic: I-95 supports over 65,000 ADT and Abercorn St supports approximately 20,000 ADT

• Outstanding Population Growth: 22.83% growth from 2010-2015 and projected 14.21% growth from 2015-2020 in a one mile radius with double digit growth also in the 3 and 5 mile radii

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A p p l e b e e ’ s587 Al Henderson BoulevardSavannah, GA 31419

List Price ...................................................................................................................$3,166,262

CAP Rate - Current .......................................................................................................... 7.25%

Gross Leasable Area .............................................................................................± 5,465 SF

Lot Size ...................................................................................................................± 1.21 Acres

Year Built .............................................................................................................................2006

Annualized Operating DataMonthly Rent Annual Rent Rent/SF Cap Rate

1/1/2017 - 12/31/2021 $19,129.50 $229,554 $39.31 7.25%

1/1/2022 - 12/31/2026 $21,042.45 $252,509 $43.25 7.97%

Option 1: 1/1/2027 - 12/31/2031 $23,146.70 $277,760 $47.57 8.77%

Option 2: 1/1/2032 - 12/31/2036 $25,461.36 $305,536 $52.33 9.65%

Option 3: 1/1/2037 - 12/31/2041 $28,007.50 $336,090 $57.56 10.61%

Tenant Summary

Tenant Trade Name Applebee’s

Type of Ownership Ground Lease

Lease Guarantor Apple Georgia, LLC

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 20 Years

Lease Commencement Date 1/1/2007

Rent Commencement Date 1/1/2007

Lease Expiration Date 12/31/2026

Term Remaining on Lease ± 9 Years

Increases 9% Increases Every Five (5) Years

Options Three (3), Five (5) Year Options

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Trade Name Applebee’s

Ownership Private

Parent Company Trade Name Apple American Group, LLC

No. of Locations ± 485

No. of Employees ± 865

Headquartered Independence, Ohio

Website www.appleamerican.com

Year Founded 1998

Founded in 1998, Apple American Group, LLC is a subsidiary of Flynn Restaurant Group LLC that owns and operates Applebee’s Neighborhood Grill and Bar restaurants. Apple American Group takes a local approach with each of its restaurants to enable them to reach their full potential by empowering their store operators. Once a popular neighborhood restaurant, Applebee’s continues to grow and prosper as it is now one of the largest casual dining chains in the world. The menu features beef, chicken and pork items, as well as burgers, pasta and seafood, with a selection of signature menu items found only at Applebee’s.

strategy

With the vision to become the premier Applebee’s franchisee and one of the best operators in the industry, the Apple American Group company structure is designed to achieve sustained growth. The company strives to maintain its units in optimal physical condition through continued reinvestment to ensure its restaurants meet these high standards.

geographic reach

Apple American Group, LLC owns and operates 485 Applebee’s locations in the states of Alabama, California, Colorado, Delaware, Georgia, Idaho, Indiana, Maine, Massachusetts, Minnesota, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oregon, Pennsylvania, Rhode Island, Vermont, Wisconsin, Washington State, and West Virginia.

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Property Name Applebee’s

Property Address 587 Al Henderson Boulevard

Savannah, GA 31419

Assessor’s Parcel Number 1-1029-01-085

Zoning PBC

Site DescriptionNumber of Stories One

Year Built 2006

Gross Leasable Area (GLA) ± 5,465 SF

Lot Size ± 1.21 Acres (52,921 SF)

Type of Ownership NNN

Parking ± 74 Surface Spaces

Parking Ratio 13.5 : 1,000 SF

Landscaping Professional

Topography Generally Level

p a r c e l m a p

ConstructionFoundation Concrete Slab

Framing Wood

Exterior Brick

Parking Surface Asphalt

Roof Flat

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T E N A N T M A P

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Savannah is a historic and sophisticated city on a coastal plain in Georgia a few miles inland from the Atlantic that is known for its Southern charm and coastal lifestyle. Its well-preserved Historic District is the core of the city, abuzz with creativity, art, culture and live theatre. Integrated with innovative urban design in a pedestrian-friendly layout, Savannah’s park-like Historic District tells the story of the city’s past with an added modern punch of high-style boutiques, galleries and restaurants. With a myriad of activities for recreation and its lively atmosphere, Savannah attracts over 13.4 million annual visitors. It is a Southern escape that can be enjoyed any time of year, beguiling visitors with Old World glamour and romance.

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P r o p e r t y d e m o g r a p h i c s

POPULATION 3-Mile 5-Mile 10-Mile

2022 Projection 14,300 46,843 162,107

2017 Estimate 12,767 42,196 150,196

2010 Census 10,215 34,900 132,140

Growth 2017 - 2022 12.01% 11.01% 7.93%

Growth 2010 - 2017 24.98% 20.91% 13.66%

HOUSEHOLDS 3-Mile 5-Mile 10-Mile

2022 Projection 5,439 17,590 61,410

2017 Estimate 4,856 15,909 56,689

Growth 2017 - 2022 12.01% 10.57% 8.33%

INCOME 3-Mile 5-Mile 10-Mile

2017 Est. Average Household Income

$71,562 $81,807 $69,302

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ECONOMIC SNAPSHOTHistorically, Savannah’s port facilities have been a primary economic driver for the area. Today, it is an industrial center and an important Atlantic seaport. The local economy is diverse in its major economic sectors of manufacturing, small business, tourism, military shipping from the port, higher education and large-scale healthcare and eldercare providers. The area also has some aerospace and general industry as well. Since the early 21st century, the tourism industry has dramatically boomed, stimulating the ongoing development of new hotels, restaurants and shops. Economic growth in Savannah can be attributed to many hospitality entities throughout the city.

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T Y B E E I S L A N D

Also known as Savannah Beach, Tybee Island is a barrier island just a twenty minute drive through Savannah’s coastal marshes. Easily accessible from the city, this barrier island is famous for its assorted cuisine, exceptional accommodations and abundance of outdoor recreational activities. Visitors can explore Tybee Island’s three miles of uninterrupted public beach and take in the surrounding natural beauty or even go deep sea fishing on a private charter. It is a place where time slows down, where deep, blue waters, sandy beaches and friendly locals make for the perfect getaway.

H i lt o n h e a d i s l a n d , S o u t h C a r o l i n a

Northeast of Savannah, Hilton Head is a paradise nestled along the South Carolina coast. This resort town in South Carolina’s Lowcountry region is the primary city within the Hilton Head Island-Bluffton-Beaufort metropolitan area. Offering twelve miles of pristine beaches and twenty-four world-class golf courses, Hilton Head has all the makings for the ultimate retreat. An array of outdoor excursions has earned Hilton Head recognition as one of the top 10 family beaches in the country. From inshore and offshore fishing charters to kayaking and parasailing, there are many opportunities to take advantage of the island’s location all year-round. Culturally-inclined visitors can enjoy Hilton Head’s exceptional cultural amenities that celebrate the area’s heritage such as the Arts Center of Coastal Carolina, the Hilton Head Symphony Orchestra and the Coastal Discovery Museum. The city also hosts the Heritage Golf Classic, a PGA Tour tournament, and an annual tented wine tasting event.

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West of Savannah, Savannah/Hilton Head International Airport is located off Interstate 95 and serves as the chief commercial airpot for the Savannah metropolitan area. It is a public and military use airport owned by the city of Savannah that is categorized as a primary commercial airport. Delta Air Lines, JetBlue, United Airlines, American Eagle, and Allegiant Air all offer flights to the airport’s passengers.

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SAVANNAH/HILTON HEAD INTERNATIONAL AIRPORT

Chatham Area Transit (CAT) is the public transportation provider in the Savannah metropolitan area. CAT continues to improve the quality of its services through the development of optimized transportation routes.

CHATHAM AREA TRANSIT

The Downtown Transportation (dot) system is the city of Savannah’s multi-modal transportation system that is capable of moving downtown visitors by road, rail and sea. Free of charge, the dot system consists of the Savannah Belles Passenger Ferry, the River Street Streetcar, and the dot Shuttle.

DOWNTOWN TRANSPORTATION SYSTEM

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Applebee’s located at 587 Al Henderson Boulevard, Savannah, GA 31419 (“Property”) . I t has been prepared by Matthews Real Estate Investment Services. 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 Real Estate Investment Services. 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; and

3. 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 Real Estate Investment Services 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 Real Estate Investment Services 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.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T

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K Y L E M AT T H E W S

G a r y c h o u

k e v i n c h a n g

FVP & Senior Director

Associate

[email protected] (310) 919-5827MOB (714) 928-8016LIC# 01911222

[email protected] (310) 919-5828MOB (951) 616-8918LIC# 01976724

BROKER OF RECORDLIC # 363764

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