Dairy Queen Grill & Chill279 Hwy 78 West • Jasper • Alabama 35501

Lease Type Absolute Net

Roof & Structure Tenant Responsible

Lease Term 15 Years

Rent Commencement At Close of Escrow

Increases 7.5% Every Five-Years

Guarantor Seven Unit Operator

Option to Terminate None

Option to Purchase None

Right of First Refusal None

Price $1,461,538

Cap Rate 6.5%

Net Operating Income $95,000

Gross Leasable Area 2,263 SF

Year Built 2009

PRICE

$1,461,538

CAP RATE

6.5%

NOI

$95,000

Lease Summary

ADDRESS:

279 Hwy 78 WEST • Jasper • Alabama 35501

TERM ANNUAL RENT MONTHLY RENT

Current $95,000 $7,917

Year 2025 $102,125 $8,510

Year 2030 $109,784 $9,148

Year 2035 $118,017 $9,834

Rent Schedule

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed orimplied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the informationand bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes onlyand do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a servicemark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID Z0090589

Lot Size 0.70 +/- Acres

• 15-Year Absolute Net Lease

• Seven Unit Franchisee Guarantee

• Excellent Visibility On Highway 78 In Decatur That Sees Over23,400 VPD

• Only Dairy Queen In The City of Jasper

• Retailers in the Immediate Area Include Jasper Mall, T.J.Maxx, Hobby Lobby, Planet Fitness, Burger King, CVS,Walgreens, McDonalds, Hardee’s, Taco Bell, KFC, and ManyMore

• Built in 2009 With the New Dairy Queen Concept & DesignFeaturing an Expanded Menu

• Dairy Queen Recorded Revenue of $3.64 Billion in 2017

Investment Highlights

Demographics

8,000+Householdswithin a

5-Mile Radius

$61,611Average HouseholdIncome

within a 1-Mile Radius

20,000+Populationwithin a 5-

Mile Radius

Marcus & Millichap is pleased to present thisDairy Queen Grill & Chill restaurant located in Jasper, Alabama.The property consists of a 0.70-acre parcel improved with a2,263-square foot building which was developed in 2009. Thisfranchisee operates seven other Dairy Queens in Alabama andArkansas and has plans to continue expansion. The propertywill be subject to a 15-Year Absolute Net lease that willcommence at close of escrow. The annual base rent that willbe payed to the landlord will be $95,000 annually with 7.5%increases every five years.

The property is strategically positioned offHighway 78 and is easily accessible to the over 23,400 vehiclesthat come across the property every day. The subject propertyis in the center of a major retail corridor that includes majortenants such as T.J. Maxx, Hobby Lobby, Planet Fitness, BurgerKing, CVS, Walgreens, McDonalds, Hardee’s, Taco Bell, KFC,and many more. This investment opportunity is part of aportfolio sale and is one of three Dairy Queen Grill & Chillrestaurants that are available for purchase.

Investment Overview

Representative Image

OWNERSHIP:

Private

TENANT:

Sims Development Group

WEBSITE:

https://www.dairyqueen.com/

HEADQUARTERED IN

Edina, Minnesota

FOUNDED

1940

$3.64 BillionREVENUE IN 2017

Continuing Into 2020

New Concept Expansion

Parent Company

2,931 Franchisees

Dairy Queen is an American chain of soft serve ice

cream and fast-food restaurants owned by International

Dairy Queen, Inc., a subsidiary of Berkshire Hathaway.

The company’s stores are operated under several

brands, all bearing the distinctive Dairy Queen logo and

carrying the company’s signature soft-serve ice cream.

DQ Grill & Chill locations feature hot food, treats, table

delivery, and self-serve soft drinks. It is the new concept

for new and renovated full-service restaurants. The new

concept stores are larger than older-style locations and

feature a completely new store design. In most cases,

they offer an expanded menu including breakfast, Grill

Burgers, and grilled sandwiches, as well as limited table

service. They also contain self-serve soft drink fountains

that allow for free refills. As of the end of 2017, Dairy

queen had more than 6,800 stores around the world,

with 4,455 of those stores being in the United States.

Berkshire Hathaway

Sims Development Group

The two partners, Terry andAimee Sims have nearly 60 years of multi-unit restaurant managerial experience forseveral brands. In 2012, they discoveredan opportunity to open a DQ store in agreat location and decided it was time tomake the leap from managing restaurantsto owning their own. They contacted theDairy Queen headquarters, and withinseven months, they opened their ColonialPromenade Parkway location in Alabaster,Alabama and began their journey ofoperation as Dairy Queen Franchisees.From that point on, they have continuedto expand and grow their brand inAlabama and Arkansas. They now operateseven Dairy Queens with continuedexpansion into 2020 on the horizon andhave plans to eventually operate up to 15stores in the southeast.

Sims Development Group (Springdale, Arkansas Location)

Aerial Photo

Jasper is a city in and the country seat of

Walker County, Alabama. As of 2018, the

population within a 5-Mile radius of the

subject property was 20,000+ people with

over 8,100 households. The average

household income within a 1-Mile Radius is

estimated at $68,611. The location of the

subject property is positioned in the center

of a major retail corridor in Jasper. The

major employers in Jasper include

Educational services, Health care, and

Social Assistance which make up 24 percent

of the employment. Retail and

Manufacturing also make up another large

portion of the employment as well as

management, administrative and waste

management services. Schools in Jasper are

part of the Jasper City School System; the

city has upwards of 2,600 students and 190

teachers in the six public schools that

service the area. Jasper is located about 15

miles south of the 21,000-acre Lewis Smith

Lake, which has the largest earthen dam in

the world. It offers all forms of water

recreation including boating, fishing, and

swimming. The city itself has a seven

municipal parks that include athletic fields,

a gymnasium and a municipal pool complex.

Jasper, Alabama

CONFIDENTIALITY & DISCLAIMER

TheinformationcontainedinthefollowingMarketingBrochureisproprietaryandstrictlyconfidential. ItisintendedtobereviewedonlybythepartyreceivingitfromMarcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure hasbeen prepared to provide summary, unverified information to prospectivepurchasers, and to establish only apreliminary levelof 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 nowarranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the sizeand square footage of the property and improvements, the presence or absence of contaminating substances, PCB’sor asbestos, the compliance with State andFederal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans orintentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe tobe reliable; however, Marcus &Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus &Millichap conducted anyinvestigation 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.

NON-ENDORSEMENT NOTICE

Marcus &Millichap isnot affiliated with,sponsored by,or endorsed by anycommercial tenant or lessee identified in this marketingpackage.Thepresenceof anycorporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, itsaffiliatesor subsidiaries,or anyagent,product,service,or commerciallistingofMarcus&Millichap,andissolelyincludedfor thepurposeofprovidingtenant lesseeinformation about this listing to prospective customers.

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 notverify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warrantyor 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 beforecompleting 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 performanceof thisproperty.Thevalueofanet leasedproperty toyoudependson factorsthatshouldbeevaluatedbyyouandyour tax,financialandlegaladvisors.Buyer andBuyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to yoursatisfaction with the suitability of the property for your needs.

Likeallrealestateinvestments,this investmentcarriessignificantrisks.BuyerandBuyer’s legalandfinancialadvisorsmustrequestandcarefullyreviewall 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 for some properties, including newly-constructed facilities or newly-acquired locations, may be set based ona 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 anyguarantors mayfail to paythe leaserent or property taxes,or mayfail to complywithother material terms of the lease;cashflowmaybe interrupted in part or inwholedue tomarket,economic,environmentalor other conditions.Regardlessof tenanthistoryand leaseguarantees,Buyer isresponsible for conductinghis/herowninvestigationof all matters affecting the intrinsic valueof the property and the value of any long-term lease, including the likelihood of locatingareplacementtenant 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 tenantconsideringthe locationof theproperty, andBuyer’s legalability to makealternateuseof theproperty.

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 liabilityarisingoutofyour investigationand/or purchaseof thisnetleasedproperty.

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