Dairy Queen Grill & Chill | Marianna, FLOffering Memorandum

DOUG ARONSONDIRECTOR

(954) 514-9477 daronson@calkain.com

Actual Site

EXCLUSIVE LISTINGOffering Memorandum

1

C A L K A I N .C O MC A L K A I N .C O M

Dairy Queen Grill & Chill | Marianna, FL

Dairy Queen Grill & Chill | Marianna, FLOffering Memorandum

2074 Highway 71 | Marianna, FL 32448

Asking Price $1,627,700 | Cap Rate 6.10%

Net Operating Income (NOI) $99,290

Rent/Month $8,274.17

Rentable Square Feet 2,608+/- SF

Land Area 1.0+/- Acres

Tenant Name Dairy Queen Grill & Chill

Guarantor Franchisee & Personal

Ownership Type Fee Simple

Lease Type NNN

Landlord Responsibilities None

Store Open 2011

Lease Term Remaining 15 Years

Rent Commencement TBD

Lease Expiration TBD

Increases 2% Annually

Options Two (2), Five (5) Year

Rent Schedule

Term Increases Annual Rent Monthly RentYear 1 - $99,290.00 $8,274.17

Year 2 2% $101,275.80 $8,439.65

Year 3 2% $103,301.32 $8,608.45

Year 4 2% $105,367.34 $8,780.62

Year 5 2% $107,474.69 $8,956.22

Year 6 2% $109,624.18 $9,135.35

Year 7 2% $111,816.67 $9,318.06

Year 8 2% $114,053.00 $9504.42

Year 9 2% $116,334.06 $9,694.51

Year 10 2% $118,660.74 $9,888.40

Year 11 2% $121,033.96 $10,086.16

Year 12 2% $123,454.64 $10,287.89

Year 13 2% $125,923.73 $10,493.64

Year 14 2% $128,442.20 $10,703.52

Year 15 2% $131,011.03 $10,917.59

Investment Highlights • 15-year absolute NNN lease

• Rare 2% annual rent increases

• Full service Grill & Chill with drive-thru

• Located directly off interstate exit

• Franchisee and personal guaranty

• Award winning Dairy Queen operator

• Florida has no state income tax

2

Financial Summary

Dairy Queen Grill & Chill | Marianna, FLOffering Memorandum

A Story of Sweet SuccessFor more than 70 years, the DQ® system’s recipe for success has been simple. It’s been a combination of hardworking people who own and operate restaurants, and great-tasting food and tempting treats served in our establishments.

Our phenomenal story began with the 10-cent sale of a then unnamed product on August 4, 1938, in Kankakee, Illinois. A father and son partnership in Green River, Illinois, had been experimenting with a soft frozen dairy product for some time. They contacted Sherb Noble, a good friend and customer, who agreed to run the “all you can eat” trial sale at his walk-in ice cream store. Within two hours, he dished out more than 1,600 servings of the new dessert.

Back then, food franchising was all but unheard of, but the new product’s potential made it a natural for such a system. When the United States entered World War II in December 1941, there were fewer than 10 Dairy Queen® stores. However, shortly after the war, the system took off at a pace virtually unrivaled before or since. With only 100 stores in 1947, it grew to 1,446 in 1950 and then to 2,600 in 1955. Today, the DQ® system is one of the largest fast food systems in the world, with more than 6,000 restaurants in the United States, Canada and 18 other countries.

Although much has changed in the world and in the DQ® system through the years, one constant has remained: DQ® restaurants are still, and always have been, the place to find kids’ sports teams celebrating a victory, business people on their lunch break and families taking time out to enjoy great food and soft serve treats. And success for the DQ® system is as simple today as it was in 1940. Satisfied customers lead to successful restaurants. Each owner of our independently owned and operated establishments worldwide is committed to nothing less than the “Fan Food not Fast FoodTM”slogan.

Dairy Queen OverviewDairy Queen, often abbreviated DQ, is a chain of soft serve ice cream and fast food restaurants owned by International Dairy Queen, Inc, a subsidiary of Berkshire Hathaway.

Franchise Times estimates DQ sales worldwide at more than $3 billion, ranking it the 32nd largest franchise chain of the Top 200 Franchise Chains list.

HistoryThe founders of the Dairy Queen® system were men and women who introduced a new kind of dessert treat and, in the process, developed the foundation of the franchising industry. The history of the DQ® system is a story of a unique product that created an industry.

3

Tenant Overview

Dairy Queen Grill & Chill | Marianna, FLOffering Memorandum

Location Overview

Distance To:

Tallahassee 63 miles

Pensacola 137 miles

Gainesville 209 miles

Jacksonville 224 miles

Tallahassee Jacksonville

Gainesville

Savannah, GA

Orlando

Tampa

Pensacola

Subject Site

Marianna

4

2074 Highway 71 | Marianna, FL

Dairy Queen Grill & Chill | Marianna, FLOffering Memorandum

Inte

rsta

te 1

0 2

3,50

0 VP

D

Highway 71 7,100 VPDHighway 71 7,100 VPD

Subject Site

Nat’l Brand Hotel Coming Soon

5

Dairy Queen Grill & Chill | Marianna, FLOffering Memorandum

Marianna, FLNestled along I-10 just under the Florida-Alabama border and a brief drive west of Tallahassee, Marianna is called “The City of Southern Charm.” And even a brief stroll through its quaint, country-in-town downtown substantiates that title. Look for the triangulated courthouse park, with its gazebo, and the nearby obelisk marking the Civil War Battle of Marianna. Stop by the Russ House & Visitor Center, a Classical Revival/Queen Anne home built in the 1890s and listed on the National Register of Historic Places.

Eco-tourism is a burgeoning business in Jackson County, thanks to its abundant natural beauty, miles of spring-fed rivers, lakes and ponds, and paddling trails that draw kayak, canoe and paddle board enthusiasts to explore the Chipola River. When you visit Marianna, you also must see Florida Caverns State Park, the state’s only dry caverns along a quarter-mile trail. In addition, the largest dam in Florida backs up big Lake Seminole and gives rise to Three Rivers State Park. The Bellamy Bridge Heritage Trail leads to the oldest bridge of its type in Florida, the focal point for one of the area’s best-known ghost stories.

6

Market Overview

Dairy Queen Grill & Chill | Marianna, FLOffering Memorandum

Radius 3 Mile 5 Mile 10 MilePopulation2016 Population 1,998 6,688 21,273

2021 Population 1,969 6,600 21,087

2016 Male Population 48.9% 47.9% 49.8%

2016 Female Population 51.1% 52.1% 50.2%

2016 Median Age 43.4 41.9 41.4

Households2016 Total Households 797 2,705 7,926

2021 Total Households 782 2,658 7,826

2016 Average Household Size 2.45 2.43 2.46

Median Household Income2016 Median Household Income $38,516 $36,970 $37,934

2021 Median Household Income $44,408 $43,681 $43,681

2016-2021 Annual Rate 2.89% 2.76% 2.86%

Average Household Income2016 Average Household Income $55,871 $51,920 $53,311

2021 Average Household Income $62,772 $58,028 $59,180

2016-2021 Annual Rate 2.36% 2.25% 2.11%

Per Capita Income2016 Per Capita Income $22,742 $21,582 $20,835

2021 Per Capita Income $25,433 $23,998 $22,991

2016-2021 Annual Rate 2.26% 2.14% 1.99%

7

Demographics

Dairy Queen Grill & Chill | Marianna, FLOffering Memorandum

DOUG ARONSONDIRECTOR

(954) 514-9477 daronson@calkain.com

Who Are We? We are a national commercial real estate firm that provides consulting and brokerage services to both private and institutional clientele with an expertise on triple net lease investments. We pride ourselves on being a world class leader by providing our clients a full array of commercial real estate investment brokerage and asset management solutions, including advisory, research, estate planning and wealth management.

We have built solid relationships throughout our decades of experience and innovation, implementing long-term allocation within the context of each client’s particular risk tolerance and identifying how best to acquire and dispose of income producing properties for each entities’ specific set of investment criterion. At Calkain, our foresight and past performance are leading the net lease investment industry.

Our HistoryLike most success stories, Calkain was formulated from humble beginnings. Jonathan W. Hipp, President and CEO, took the initiative to build upon his decades of experience and performance and left a large international brokerage firm to become an independent and innovative leader within the triple net lease investment community. Armed with a sole employee and a single office, the firm has grown exponentially since its infancy in 2005.

With the growth in staff, seasoned professionals have been attracted to Calkain’s model of innovation, entrepreneurship and the fostering of long-lasting and meaningful relationships. Industry experts have joined Calkain in the hopes of implementing the skills they have honed in complementary aspects of real estate investment.

Through a tremendous endeavor, tireless hours have been committed to continually prove that Calkain is America’s Net Lease Company®. Its countless accolades received from the world’s leading business publications, including Forbes™, Fortune™ and the New York Times™ have confirmed that Calkain is a true leader in triple net lease investing services.

Client Testimonial

“USRA has worked with Calkain on numerous occasions. They have always been meticulous in their work ethic, providing superior service and extremely prompt attention to our needs. I highly recommend them.

–Jack Genende, Partner | U.S. Realty Advisors, LLC. (USRA)

$11.5 Billion in Closed Transactions

$300 Million

in Active Listings

8

C A L K A I N .C O MC A L K A I N .C O M

About Calkain

DISCLAIMER: The information contained in this document is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Calkain and its subsidiaries, and should not be made available to any other person or entity without the written consent of Calkain. This document has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property(s). The information contained herein is not a substitute for a thorough due diligence investigation. Calkain and its subsidiaries have not made any investigation, and make no warranty or representation, with respect to the income or expenses for the subject property(s), the future projected financial performance of the property, the size and square footage of the property(s) and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regula-tions, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property(s). The information contained in this document has been obtained from sources we believe to be reliable; however neither Calkain and its subsidiaries nor the Seller have verified, and will not verify, any of the information contained herein, nor has Calkain and its subsidiaries or the Seller conducted any investigation regarding these matters and make 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.

Corporate Headquarters Washington, DC12930 Worldgate Drive | Suite 150 Herndon, VA 20170 T: (703) 787-4714 • F: (703) 787-4783

Tampa400 N. Tampa Street | Suite 2660 Tampa, FL 33602 T: (813) 282-6000 • F: (813) 282-6098

South Florida300 S. Pine Island Road | Suite 300 Fort Lauderdale, FL 33324 T: (954) 302-7365

Atlanta111 Village Parkway, Building 2 | Suite 202 Marietta, GA 30067 T: (404) 900-5629

Boston101 Federal Street | Suite 1900 Boston, MA 02110 T: (617) 261-8584

CALKAIN.COM

Contact Us