OFFERING MEMORANDUM - LoopNet · in Columbus, Ohio. The company moved its headquarters to Dublin, Ohio on January 29, 2006. The Wendy's chain offers made-to-order burgers and fries

WENDY’SE X C L U S I V E N E T L E A S E D O F F E R I N G

OFFERINGMEMORANDUM

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3422 Taylor BlvdLouisville, KY 40215

Marcus & Millichap hereby advises all prospectivepurchasers of Net Leased property as follows:

The information contained in this Marketing Brochure hasbeen obtained from sources we believe to be reliable.However, Marcus & Millichap has not and will not verifyany of this information, nor has Marcus & Millichapconducted any investigation regarding these matters.Marcus & Millichap makes no guarantee, warranty orrepresentation whatsoever about the accuracy orcompleteness of any information provided.

As the Buyer of a net leased property, it is the Buyer’sresponsibility to independently confirm the accuracy andcompleteness of all material information beforecompleting any purchase. This Marketing Brochure is not asubstitute for your thorough due diligence investigation ofthis investment opportunity. Marcus & Millichap expresslydenies any obligation to conduct a due diligenceexamination of this Property for Buyer.

Any projections, opinions, assumptions or estimates usedin this Marketing Brochure are for example only and donot represent the current or future performance of thisproperty. The value of a net leased property to youdepends on factors that should be evaluated by you andyour tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and constructionadvisors should conduct a careful, independentinvestigation of any net leased property to determine toyour satisfaction with the suitability of the property foryour needs.

Like all real estate investments, this investment carriessignificant risks. Buyer and Buyer’s legal and financialadvisors must request and carefully review all legal andfinancial 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 aguarantee of future success. Similarly, the lease rate forsome properties, including newly-constructed facilities ornewly-acquired locations, may be set based on a tenant’sprojected sales with little or no record of actualperformance, or comparable rents for the area. Returnsare not guaranteed; the tenant and any guarantors mayfail to pay the lease rent or property taxes, or may fail tocomply with other material terms of the lease; cash flowmay be interrupted in part or in whole due to market,economic, environmental or other conditions. Regardlessof tenant history and lease guarantees, Buyer isresponsible for conducting his/her own investigation of allmatters affecting the intrinsic value of the property andthe value of any long-term lease, including the likelihoodof locating a replacement tenant if the current tenantshould default or abandon the property, and the leaseterms that Buyer may be able to negotiate with apotential replacement tenant considering the location ofthe property, and Buyer’s legal ability to make alternateuse of the property.By accepting this Marketing Brochure you agree to releaseMarcus & Millichap Real Estate Investment Services andhold it harmless from any kind of claim, cost, expense, orliability arising out of your investigation and/or purchaseof this net leased property.

CONFIDENTIALITY AND DISCLAIMER

The information contained in the following MarketingBrochure is proprietary and strictly confidential. It isintended to be reviewed only by the party receiving itfrom Marcus & Millichap and should not be madeavailable to any other person or entity without the writtenconsent of Marcus & Millichap. This Marketing Brochurehas been prepared to provide summary, unverifiedinformation to prospective purchasers, and to establishonly a preliminary level of interest in the subject property.The information contained herein is not a substitute for a

thorough due diligence investigation. Marcus & Millichaphas not made any investigation, and makes no warranty orrepresentation, with respect to the income or expensesfor the subject property, the future projected financialperformance of the property, the size and square footageof the property and improvements, the presence orabsence of contaminating substances, PCB’s or asbestos,the compliance with State and Federal regulations, thephysical condition of the improvements thereon, or thefinancial condition or business prospects of any tenant, orany tenant’s plans or intentions to continue its occupancyof the subject property. The information contained in thisMarketing Brochure has been obtained from sources webelieve to be reliable; however, Marcus & Millichap hasnot verified, and will not verify, any of the informationcontained herein, nor has Marcus & Millichap conductedany investigation regarding these matters and makes nowarranty or representation whatsoever regarding theaccuracy or completeness of the information provided. Allpotential buyers must take appropriate measures to verifyall of the information set forth herein.

NON-ENDORSEMENT NOTICE

Marcus & Millichap Real Estate Investment Services, Inc.(“M&M”) is not affiliated with, sponsored by, or endorsedby any commercial tenant or lessee identified in thismarketing package. The presence of any corporation’slogo or name is not intended to indicate or implyaffiliation with, or sponsorship or endorsement by, saidcorporation of M&M, its affiliates or subsidiaries, or anyagent, product, service, or commercial listing of M&M,and is solely included for the purpose of providing tenantlessee information about this listing to prospectivecustomers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENTFOR MORE DETAILS.

Confidentiality and Disclaimer

Table of ContentsInvestment Highlights 4

Financial Analysis & Investment Summary 5

Concept & Tenant Overview 6

Surrounding Area 7

Location Overview 8

Property Photos 9

Surrounding Area Photos 10

Local Map 11

Regional Map 12

Demographics 13

Market Overview 14

Investment Highlights

Optimal Lease Structure ✓ 20-Year Triple Net (NNN) Lease with Zero Landlord Responsibilities✓ Attractive Rental Increases | 10.00% Every Five (5) Years✓ Four (4) Tenant Renewal Periods of Five (5) Years Each

Compelling Location Fundamentals✓ National Retail Presence | McDonald’s, Hardee’s, Discount Tire, Ace

Hardware, KFC, Marathon, BB&T, Dollar General Market, and Many More

✓ Less Than a Mile From Kentucky Kingdom, a 63-Acre Amusement Park With Rollercoasters and Hurricane Bay | Directly Next to Kentucky State Fair Grounds

✓ Strong Traffic Counts | Taylor Boulevard & Interstate 264 | Average 23,000 and 101,000 Vehicles Per Day Respectively

✓ Ideally Located in a Large Metropolitan Area| Located Less Than Three Miles Outside of Downtown Louisville

✓ Direct Proximity to Louisville International Airport | Almost 4 Million Passengers and Over 5 Billion Pounds of Cargo Travel Through Annually

✓ Strong Demographics | Population within a Five-Mile Radius is More Than 258,000

Strong Brand, Exceptional Operator✓ Wendy’s is the World’s Number Three Hamburger Chain in Terms of

Locations✓ There are Approximately 6,600 Franchise and Company-Operated

Wendy’s Restaurants in the United States and 30 Countries and U.S. Territories Worldwide

✓ Stonewall Road Restaurant Group (“SRRG”) is a Singularly Focused Restaurant Operations Firm, and One of Wendy’s Fastest-Growing and Most-Respected Franchisee Groups

✓ SRRG Currently Operates 45 Wendy’s Restaurants with Significant Plans for Expansion through a Robust M&A and Development Pipeline

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Financial Analysis & Investment SummaryPRICE: $895,040 | CAP RATE: 5.00% | RENT: $44,752

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PROPERTY DESCRIPTION

Property Wendy's

Property Address 3422 Taylor Blvd

City, State ZIP Louisville, KY 40215

Year Built 1978

Building Size (SF) 2,663

Lot Size (Acres) 0.45

Type of Ownership Fee Simple

THE OFFERING

Purchase Price $895,040

CAP Rate 5.00%

Annual Rent $44,752

LEASE SUMMARY

Tenant / GuarantorSRRG Kentucky LLC / SRRG Holdings LLC & Stonewall

Road Partners LLC

Original Lease Term 20 Years

Lease Commencement March 18, 2019

Lease Expiration March 18, 2039

Lease Term Remaining 19.5 Years

Lease Type Triple Net (NNN)

Roof & Structure Tenant Responsible

Options to Renew Four, Five-Year Option Periods

Rental Increases 10% Every Five Years

RENT SCHEDULE

Lease Year(s) Annual Rent Monthly Rent Rent Escalation

Year 1 $44,752 $3,729 -

Year 2 $44,752 $3,729 -

Year 3 $44,752 $3,729 -

Year 4 $44,752 $3,729 -

Year 5 $44,752 $3,729 -

Year 6 $49,227 $4,102 10.00%

Year 7 $49,227 $4,102 -

Year 8 $49,227 $4,102 -

Year 9 $49,227 $4,102 -

Year 10 $49,227 $4,102 -

Year 11 $54,150 $4,512 10.00%

Year 12 $54,150 $4,512 -

Year 13 $54,150 $4,512 -

Year 14 $54,150 $4,512 -

Year 15 $54,150 $4,512 -

Year 16 $59,565 $4,964 10.00%

Year 17 $59,565 $4,964 -

Year 18 $59,565 $4,964 -

Year 19 $59,565 $4,964 -

Year 20 $59,565 $4,964 -

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About Wendy’sWendy’s is an American international fast food chain

restaurant founded by Dave Thomas on November 15, 1969,

in Columbus, Ohio. The company moved its headquarters to

Dublin, Ohio on January 29, 2006. The Wendy's chain offers

made-to-order burgers and fries as well as such alternative

menu items as baked potatoes, chili, and salads. The chain is

known for its square hamburgers, sea salt fries and the Frosty,

a form of soft serve ice cream mixed with frozen starches. As

of 2018, Wendy’s is the world's number three hamburger chain

in terms of locations (only behind McDonald's and Burger

King), with approximately 6,600 franchise and Company-

operated restaurants in the United States and 30 countries and

U.S. territories worldwide.About Stonewall Road Restaurant GroupStonewall Road Restaurant Group (“SRRG”) is a singularly

focused restaurant operations firm, and one of Wendy’s

fastest-growing and most-respected franchisee groups.

Founded in 2017 by two friends and partners with deep

personal roots in franchising and experience building and

growing businesses, SRRG represents ‘the next generation’ of

Wendy’s franchisees. SRRG is led by Glen Brandeburg, a

former Wendy’s operations executive (SVP & DVP) with ~25

years of experience in the quick-service-restaurant space.

Operational expertise is further buoyed by >200 years of

collective experience in the Wendy’s system via SRRG’s

experienced multi-unit operations managers. The Company

currently operates 45 Wendy’s restaurants with significant

plans for expansion through a robust M&A and development

pipeline. SRRG’s headquarters is located in Dallas, TX.

Concept & Tenant Overview

Surrounding Area

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The subject investment property is situated along Taylor Boulevard, which intersects withInterstate 264 less than a mile south from the property. Taylor Boulevard boasts averagedaily traffic counts of approximately 23,000 vehicles and Interstate 264, which surroundsthe city of Louisville and leads to Louisville International Airport brings an additional101,000 vehicles into the immediate area on average daily. There are more than 115,000individuals residing within a three-mile radius of the property and more than 258,000individuals within a five-mile radius.

The subject property benefits from being well-positioned in a densely populated area ofLouisville which is home to many national and local tenants, shopping centers,fairgrounds, theme parks and hospitality accommodations all within close proximity ofthis property. Major national tenants include: McDonald’s, Hardee’s, Discount Tire, AceHardware, KFC, Marathon, BB&T, Dollar General Market and several other quick servicerestaurants. Additionally, this Wendy’s is less than a mile away from LouisvilleInternational Airport, where almost 4 million passengers and over 5 billion pounds ofcargo travel through annually. This property also benefits from being situated within aone-mile radius of Kentucky Kingdom, a 63-acre park which includes a collection ofamusement rides and a water park named Hurricane Bay. The Kentucky State Fairgroundsare located directly next to Kentucky Kingdom, where over 600,000 visitors annually cometo 11 jam-packed days is full of concerts, competitions, livestock, exhibits, incredible eatsand plenty of surprises.

Louisville, Kentucky’s largest city, sits on the Ohio River along the Indiana Border.Louisville is the county seat of Jefferson County and has a metro population of roughly1,284,848. Louisville, since its origin, has been heavily linked to the shipping and cargoindustries, due to its location at the crossroads of three major interstate highways (I-64, I-65, and I-71). However, in the recent past, Louisville has expanded its economy acrossseveral industries, emerging as a major center for health care and medical sciences. It hasbeen central to advancements in heart and hand surgery, as well as cancer treatment. Infact, some of the earliest artificial heart and hand transplants were conducted inLouisville. In addition to a growing economy, Louisville is home to a very diverse culturalscene that includes international cuisine, fine and performing arts, and music. Today, thecity is known as the home of the Kentucky Derby, Kentucky Fried Chicken, the Universityof Louisville and its Louisville Cardinals athletic teams, Louisville Slugger baseball bats,and three of Kentucky’s six Fortune 500 companies. Its main airport, LouisvilleInternational Airport, is also the site of United Parcel Service’s (UPS) worldwide air hub.

Location Overview

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ADTC: 23,000

ADTC: 101,000

Property Photos

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Surrounding Area Photos

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Local Map

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Regional Map

NJ

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KENTUCKY

3 Miles 5 Miles 10 MilesPOPULATION

2023 Projection 114,714 257,787 657,910

2018 Estimate 115,475 258,672 650,815

2010 Census 112,590 251,130 629,713

2000 Census 115,856 258,378 621,983

INCOME

Average $45,475 $50,735 $62,825

Median $33,051 $35,400 $45,255

Per Capita $19,351 $21,680 $26,699

HOUSEHOLDS

2023 Projection 48,503 109,238 279,678

2018 Estimate 48,306 108,397 273,912

2010 Census 47,252 105,522 265,440

2000 Census 49,707 109,184 261,051

HOUSING

2018 $104,942 $117,591 $143,990

EMPLOYMENT

2018 Daytime Population 142,641 398,393 779,278

2018 Unemployment 7.78% 7.74% 5.81%

2018 Median Time Traveled 23 Mins 23 Mins 23 Mins

RACE & ETHNICITY

White 49.59% 53.75% 68.53%

Native American 0.05% 0.06% 0.05%

African American 41.34% 39.01% 24.11%

Asian/Pacific Islander 3.15% 2.26% 1.95%

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Demographics

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Market Overview

Employer Estimated # of EmployeesUPS 8,092Jewish Hospital Healthcare Services Inc 5,332University of Louisville 4,683Norton Healthcare Inc 4,278Baptist Hospital East 4,000California Square 3,900Ford 3,824Joseph Gilene President 3,500Jewish Hospital & St MA 3,452KFC 2,877Kroger 2,661Walmart 2,650

Major Employers

LouisvilleLouisville is a city that combines heritage with innovation, authenticity withoriginality, and quirkiness with friendliness, in a way that’s completely unique tothe region. The city is an entirely different type of Southern. From boundarypushing twists on Southern cuisine that has made the city one of the “10 BestNew Food Cities” in America to the one and only Urban Bourbon Experience,featuring the world’s only, city-wide trail filled with award-winning micro-distilleries, exhibits and craft cocktail destinations. Then discover one-of-a-kindattractions like the legendary Churchill Downs, Louisville Slugger Museum &Factory, and the Muhammed Ali Center. Louisville today is home to dozens ofcompanies and organizations across several industrial classifications. However,the underpinning of the city’s economy since its earliest days has been theshipping and cargo industries. Its strategic location at the Falls of the Ohio, and itsunique position in the central United States (within one day’s road travel to 60percent of the cities in the continental United States) make it a very practicallocation for the transfer of cargo along its route to other destinations.Additionally, the Louisville and Portland Canal and the Louisville and NashvilleRailroad have been important links in water and rail transportation. Louisville isalso a significant center of manufacturing, with two major Ford plants, and theheadquarters of major home appliance factory, GE Appliances. The city is also amajor center of the American whiskey industry, with about one-third of allbourbon in the nation coming from Louisville.

# of Employees based on 10-mile radius

Louisville, KY

EXCLUSIVE NET LEASE OFFERING

KY BROKER OF RECORD:Colby HaugnessMarcus & MillichapLic.# 242197