IHOP1 4 4 6 U n s e r B l v d S E | R I o R a n c h o , N M

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

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

f i n a n c i a l O V E R V I E W

a r e a O V E R V I E W

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k y l e m at t h e w sBROKER OF RECORD

LIC # 19601

G a r y c h o u

FVP & Senior Director

Gary.Chou@matthews.comDIR (310) 919-5827MOB (714) 928-8016LIC # 01911222

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• 14+ years remaining on the initial lease term

• Two (2), 5-year options to extend

• Zero landlord responsibilities – tenant pays for all expenses

• 10% rental increases every 5 years

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

• Personal Guarantee from Seasoned Franchisee – As IHOP’s 2006 “Franchisee of the Year,” the 8+ unit operator, has over 20 years of experience operating IHOPs and comparable restaurant concepts

i n v e s t m e n t h i g h l i g h t s

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S ta b i l i z e d I n v e s t m e n t w i t h G r o w i n g C a s h F l o w

• Nearby national tenants include Walmart Supercenter, Dion’s Pizza, Starbucks, Five Guys, McDonald’s, Chili’s Grill & Bar, Del Taco, Discount Tire, Chick-fil-A, Burger King, Sonic, Walgreens, Firestone Complete Auto Care, O’Reilly Auto Parts, and more

• Located near Premiere Cinema, the second largest movie theater in Rio Rancho

S T R O N G M I X O F S U R R O U N D I N G N AT I O N A L T E N A N T S

• Over 19,000 ADT on Unser Blvd SE

• Over 220,000 people living in a 5-mile radius

• Average household income in a 1-mile radius exceeds $91,000

• Average household income in a 3-mile radius exceeds $78,000

• Average household income in a 5-mile radius exceeds $80,000

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I H O P1446 Unser Blvd SERIo Rancho, NM 87124

List Price .............................................................................................................................$3,948,000

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

Gross Leasable Area .........................................................................................................± 4,544 SF

Lot Size .............................................................................................................................± 1.00 Acres

Year Built ...........................................................................................................................................2011

Annualized Operating DataMonthly Rent Annual Rent Rent/SF Cap Rate

Current - 7/30/2021 $23,849.75 $286,197 $62.98 7.25%

8/1/2021 - 7/30/2026 $26,234.73 $314,817 $69.28 7.97%

8/1/2026 - 7/30/2031 $28,858.20 $346,298 $76.21 8.77%

8/1/2031 - 7/30/2036 $31,744.02 $380,928 $83.83 9.65%

O1: 8/1/2036 - 7/30/2041 $34,918.42 $419,021 $92.21 10.61%

O2: 8/1/2041 - 7/30/2036 $38,410.26 $460,923 $101.44 11.67%

Tenant Summary

Tenant Trade Name IHOP

Type of Ownership Fee Simple

Lease Guarantor Adi Unser, Inc.

Lease Type NNN

Original Lease Term 20 Years

Lease Commencement Date 7/18/2011

Rent Commencement Date 7/18/2011

Lease Expiration Date 7/30/2031

Term Remaining on Lease ± 14 Years

Increases 10% every 5 Years

Options Two (2). 5-Year

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TENANT OVERVIEW

Since 1958, IHOP® has been the place where people connect over breakfast, enjoy study breaks, grab a bite before or after sporting events and so much more. The IHOP family restaurant chain continues to serve their world-famous pancakes and a wide variety of breakfast, lunch and dinner items that are loved by people of all ages. The casual dining restaurant offers pancakes, omelets, French toasts and waffles, crepes, burgers, sandwiches, soups, salads, hash brown stacks, desserts and beverages. International House of Pancakes, LLC also provides a line of syrups through retail stores, mass merchandisers and grocery outlets in the United States. Offering an affordable, everyday dining experience with warm and friendly service, IHOP restaurants are franchised and operated by Glendale, California-based International House of Pancakes, LLC, a wholly-owned subsidiary of DineEquity, Inc., and its affiliates. DineEquity, Inc. is one of the largest full-service restaurant companies in the world with more than 400 franchisee partners.

STRATEGY

As the leader in Family Dining, IHOP’s 99%-franchised system delivers strong free cash flow results that have been the hallmark of the brand’s financial performance for more than half a century. IHOP relies primarily on discounted value pricing and limited-time offers, such as its Free Pancake Giveaway, to drive traffic to its restaurants. The company operates in four segments: franchise operations, company restaurant operations, rental operations, and financing operations. With mostly franchised locations, the IHOP chain includes a dozen corporate-run locations used mostly for testing and training.

Focused on providing strategic, visionary leadership for their franchisees, DineEquity successfully brought Applebee’s and IHOP together in 2007 to revitalize the brands. The company’s dedicated focus combined with an expertise in brand revitalization and franchising have been the basis of their financial success in recent years.

GEOGRAPHIC OUTREACH

DineEquity operates in more than 20 countries. International House of Pancakes, LLC operates and franchises a chain of restaurants in all 50 states, the District of Columbia, the U.S. Virgin Islands and Puerto Rico. Internationally, the company has locations in Canada, Bahrain, Dubai, Guam, Guatemala, Kuwait, Qatar, Saudi Arabia, The Philippines and Mexico. As of 2015, there were 1,650 IHOP restaurants in 50 states. Focused on providing strategic, visionary leadership for their franchisees, DineEquity successfully brought Applebee’s and IHOP together in 2007 to revitalize the brands. The company’s dedicated focus combined with an expertise in brand revitalization and franchising have been the basis of their financial success in recent years.

Property Name IHOP

Company Trade Name International House of Pancakes, LLC

Parent Company Trade Name DineEquity, Inc.

Ownership Public

Credit Rating (S&P) B

No. of Locations ± 1,700

No. of Employees ± 40,000

Headquartered Glendale, California

Website www.ihop.com

Year Founded 1958

t h e o f f e r i n g

Property Name IHOP

Property Address 1446 Unser Blvd SE

RIo Rancho, NM 87124

Assessor’s Parcel Number R155512

Site DescriptionNumber of Stories One

Year Built 2011

Gross Leasable Area (GLA) ± 4,544 SF

Lot Size ± 1.00 Acres (43,560 SF)

Type of Ownership NNN

Parking 55 Surface Spaces

Parking Ratio 12 : 1,000 SF

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Oceanside Blvd ± 31,792

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Unser Blvd ± 19,000 ADT

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RIo Rancho is centrally located in the heart of New Mexico, just North of Albuquerque. Rio Rancho is the largest city and economic hub of Sandoval County in New Mexico. It is the third-largest and also one of the fastest expanding cities in New Mexico. Rio rancho is part of the Albuquerque Metropolitan Statistical Area.

Rio Rancho offers a cultural diversity within its population of 100,000. Every major attraction in the Land of Enchantment is accessible from Rio Rancho within a day’s scenic drive, including Indian Pueblos, Santa Fe, Taos, and so much more. Rio Rancho’s high-desert climate provides breathtaking vistas and plenty of room for high-altitude outdoor adventures year-round. Even if you are just passing through, Rio Rancho offers a variety of affordable, modern and convenient lodging, dining and shopping opportunities.

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Q u a l i t y o f L i f eThe community has been recognized by Family Circle Magazine as one of the 10 best towns for families in 2013. Money Magazine ranked the city as one of the 100 best places to live in America in 2005, 2006, 2010, and 2012. In April 2008, Fortune Small Business Magazine ranked Rio Rancho as the 83rd best place to live and launch a business in the United States. In November of 2008, BusinessWeek Magazine named Rio Rancho as New Mexico’s best place to raise kids in 2009. Rio Rancho received this same honor from the magazine for 2010.

R I o R A n c h o d e m o g r a p h i c s

POPULATION 1 Mile 3 Mile 5 Mile

2022 Projection 11,502 85,653 222,515

2017 Estimate 10,811 82,055 211,986

2010 Census 9,477 75,942 192,850

Growth 2017 - 2022 9.33% 4.99% 4.61%

Growth 2010 - 2017 23.61% 9.90% 9.14%

HOUSEHOLDS 1 Mile 3 Mile 5 Mile

2022 Projection 3,246 32,439 57,568

2017 Estimate 2,967 30,865 54,925

2010 Census 2,390 28,091 50,309

Growth 2017 - 2022 9.41% 5.10% 4.81%

Growth 2010 - 2017 24.14% 9.88% 9.18%

INCOME 1 Mile 3 Mile 5 Mile

2017 Est. Average Household Income

$91,012 $78,847 $80,337

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The Intel Corporation is by far the largest employer in Rio Rancho. The services, retail, and government sectors are also major component of the local economy. Rio Ranch is the site of Intel’s Intel Fab 11X, one of the largest semiconductor fabrication plants in the world. The plant has since closed, but is being converted into a test facility. Several call centers call Rio Rancho home. Walmart opened in early summer of 2006 in Rio Rancho, thus sparking several new commercial retailers to locate nearby.

E c o n o m y

N e w D e v e l o p m e n t s

• City Center development

• Loma Colorado development

• Mariposa, a 6,500 acre development

• A new University of New Mexico West Campus

• Hewlett Packard and Expansion

• Central New Mexico Community College

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economy

Albuquerque is the most populous city in the state of New Mexico. The high-altitude city serves as the county seat of Bernalillo County, and it is situated in the central part of the state, straddling the Rio Grande. The city has a population of more than 550,000 people. Albuquerque is rich in culture and heritage. There is plenty to do in Albuquerque from shopping for authentic Native American jewelry, hot air ballooning, exploring history museums and enjoying the local events and festivals.

Albuquerque is the most populous city in the state of New Mexico. The high-altitude city serves as the county seat of Bernalillo County, and it is situated in the central part of the state, straddling the Rio Grande. The city has a population of more than 550,000 people. Albuquerque is rich in culture and heritage. There is plenty to do in Albuquerque from shopping for authentic Native American jewelry, hot air ballooning, exploring historymuseums and enjoying the local events and festivals.

Albuquerque Metropolitan Statistical Area# Employer

1 Kirkland Air Force Base

2 University of New Mexico

3 Sandia National Laboratories

4 Albuquerque Public Schools

5 Presbyterian Health Services

6 City of Albuquerque

7 Lovelace-Sandia Health System

8 Intel Corporation

9 State of New Mexico

10 Wal-Mart Stores, Inc.

Top employers

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Arts & Culture

One of the major art events in the state is the summertime New Mexico Arts and Crafts Fair, a non-profit show exclusively for New Mexico artists and held annually in Albuquerque since 1961. Albuquerque is home to over 300 other visual arts, music, dance, literary, film, ethnic, and craft organizations, museums, festivals and associations. Some of the local museums, galleries, shops and other points of interest include the Albuquerque Biological Park, Albuquerque Museum, Museum of Natural History and Science, and Old Town Albuquerque. Albuquerque’s live music/performance venues including; Isleta Amphitheater, Tingley Coliseum, Sunshine Theater and the KiMo Theater. The local cuisine prominently features green chile, which is widely available in restaurants, including national fast-food chains. The restaurant scene of Albuquerque is quite prominent throughout the city, and local restaurants receive statewide attention, alongside several of them becoming chains throughout the state. The Sandia Peak Tramway, located adjacent to Albuquerque, is the world’s second-longest passenger aerial tramway. It also has the world’s third-longest single span. It stretches from the Northeast edge of the city to the crestline of the Sandia Mountains. Elevation at the top of the tramway is roughly 10,300 ft above sea level.

Albuquerque is also home of the International Balloon Fiesta, the world’s largest such gathering of balloons from around the world. The event takes place during the first week of October. The Balloon Fiesta is a nine-day event, and has over 500 balloons each year. The convention has also become a major showcase of New Mexican culture and history and features numerous cultural exhibitions. The fiesta is one of Albuquerque’s largest tourist attractions and constitutes a major source of income for the city and local businesses. Typically, tourists and fiesta visitors take thousands of pictures of the balloons, so it is no surprise that for several years the fiesta was sponsored by Kodak and was given the title, the Kodak Albuquerque International Balloon Fiesta, though that title was usually only used in print ads and on official memorabilia.

International Balloon Fiesta

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of IHOP located at 1446 Unser Blvd SE, RIo Rancho, NM 87124 (“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; 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 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.

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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IHOP1 4 4 6 U n s e r B l v d S E | R I o R a n c h o , N M

k y l e m at t h e w sBROKER OF RECORD

LIC # 19601

G a r y c h o u

FVP & Senior Director

Gary.Chou@matthews.comDIR (310) 919-5827MOB (714) 928-8016LIC # 01911222

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