™

o f f e r i n g m e m o r a n d u m

APPLEBEE’S3 2 1 9 O L D F O R E S T R D | LY N C H B U R G , VA

Representative Photo

0 3

0 4

1 0

0 6

EXECUTIVE SUMMARY

FINANCIAL OVERVIEW

AREA OVERVIEW

TENANT OVERVIEW

Kyle MatthewsBROKER OF RECORDLIC # 022602771 (VA)

Steele McDonaldAssociateSTEELE.MCDONALD@MATTHEWS.COMDIR 214.692.2265MOB 615.417.3631LIC # 694333 (TX)

BROKER OF RECORD

CONTENTS

LISTED BY

Braden CrockettAssociate VP & DirectorBRADEN.CROCKETT@MATTHEWS.COMDIR 214.692.2040MOB 714.345.6206LIC # 01946071 (CA)

Representative Photo

3

E X E C U T I V EO V E R V I E W

I N V E S T M E N T H I G H L I G H T S

• ±10 years remaining on original lease term

• Average return over the final 10 years of the lease is 7.8%

• Ideally located as an out parcel to the Lynchburg Walmart

• Walmart paid over $8,000,000 for 32 Acres of land and built the 185,000 SF Supercenter in 2010 significantly benefiting the existing Applebee’s

• Tax Assessed Value of Walmart is now $22MM

• Walmart still has over 31 Years of Depreciation remaining on the improvements making it highly unlikely they would ever leave

• The lease contains attractive 10% increases in July 2018 and every 5 years after that to hedge against future inflation

• Ideal demographics for an Applebee’s with average household incomes just over $60,000

• High population growth in a 1,3 and 5-mile radius

• New Amtrak Service launched in 2009 benefits population growth

• Lynchburg has been rated in the top 100 most affordable cities in America

• Apple Investors Group is an experienced operator that successfully operates over 150 Applebee’s, IHOPs, Burger Kings and Pizza Huts

• CoStar Estimates over $48M in Consumer Spending in the 3 Mile Radius on Food and Alcohol “Away from Home”

• Near Liberty University which is home to the entertainment attraction - Liberty Mountain Snowflex Center for year-round snow sports

• Significant Municipal Incentives - City of Lynchburg authorized $33M in tax credits to fund 236 projects for redevelopment

4

F I N A N C I A LO V E R V I E W

ANNUALIZED OPERATING DATA

Base Rent Monthly Rent

2/1/2018-6/30/2018 $144,000 $12,000

7/1/2018-1/31/2020 $156,000 $13,000

2/1/2020-7/1/2023 $182,173.33 $15,181.11

7/1/2023-6/12/2028 $200,390.67 $16,699.22

1st Option - 6/13/2028-6/12/2033Greater of $220,429.74 or 95% of

market rent $18,369.15

EXECUTIVE SUMMARY

Property Name Applebee’s

Property Street 3219 Old Forest Road

City, State, Zip Lynchburg, VA

Year Built 1999

GLA 4,786 SF

Lot Size 1.25 AC (54,450 SF)

* Rent increases to $156,000 on 7/1/2018 (Owner to credit the difference in rents between closing and 7/1/2018)

5

TENANT SUMMARY

Tenant Trade Name Applebee’s

Type of Ownership Fee Simple

Lease Guarantor Apple Investors Group, LLC

Lease Type NNN

Roof & Structure Tenant Responsible

Original Lease Term 20 years

Rent Commencement Date 1/1/2009

Lease Expiration Date 6/12/2028

Term Remaining ± 10.5 years

Increases 10% every 5 years

Options One, 5-Year

FINANCIAL HIGHLIGHTS

LIST PRICE

$2,100,000

CAP RATE

7.43%*

TERM REMAINING

± 10.5 YEARS

T e n a n to v e r v i e w

6 Representative Photo

7

APPLEBEE’S

Representative Photo

Trade Name Applebee’s

Ownership Private

Parent Company Trade Name Apple Investors Group, LLC

Headquartered West Palm Beach, Florida

Website www.applebeeig.com

Founded nearly three decades ago on the principles of exceptional value and family fun, Applebee’s Services, Inc., operates what is today the largest casual dining chain in the world. This prominent eatery draws people of all ages and lifestyles with its fun, family-friendly atmosphere and signature bar and grill menu. Applebee’s continues to grow and prosper, and further differentiates itself withinnovative attractions, like the popular Carside to Go service available at many of its restaurants. And the company continually works to add greater value and broaden its appeal, as evidenced by the “It’s a Whole New Neighborhood” campaign, which launched in the spring of 2008, indicative of a fresh, reenergized approach and the promise of new, enticing menu items.

Apple Investors Group

Apple Investor’s Group, LLC has been operating since 2008. Today AIG operates over 150 Applebee’s Neighborhood Grill and Bar restaurants, IHOPs, Burger Kings, and Pizza Huts across the nation. AIG franchises existing businesses and streamlines existing businesses by integrating the latest technologies, training staff, reviewing food safety guidelines, as well as marketing and advertising strategies to grow the business and improve the bottom line.

Oceanside Blvd ± 31,792

Col

lege

Blv

d ±

40,11

6

PARCEL MAP

8

the offering

Property Name Applebee’s

Property Address3219 Old Forest RoadLynchburg, VA 24501

Assessor’s Parcel Number 220 04 019

Site DescriptionNumber of Stories One

Year Built 1999

GLA 4,786 SF

Lot Size ± 1.25 Acres (54,450 SF)

Type of Ownership Fee Simple

Parking ± 77 Surface Spaces

Parking Ratio 16.09 : 1,000 SF

Landscaping Professional

Topography Generally Level

9s u r r o u n d i n g t e n a n t s

10 10

LYNCHBURG, VA DEMOGRAPHICS

Nicknamed “Hill City”, the City of Lynchburg rests along the banks of the JamesRiver in the foothills of the Blue Ridge Mountains of Virginia. Stretching across over 50 square miles of land, Lynchburg is the principal city of the Metropolitan Statistical Area of Lynchburg. The Metropolitan Statistical Area of Lynchburg happens to be the fifth largest MSA in the state holding a population of almost 300,000.

The vibrant City of Lynchburg values a strong sense of community, economic opportunity and a responsive results-oriented government. Priding themselves on their outstanding cultural, educational, and recreational activities, Lynchburg holds an admirably high quality of life for their residents. Along with great business opportunity, the city holds a tradition of superior public education, and is recognized to be one of the top school systems in the state.

The Hill City has their eye on the horizon always focusing on the future but never forgetting their past. Although Downtown Lynchburg is filled with beautiful revitalized historic sites the town is balanced out by diverse industry sectors, innovation and comprehensive physical as well as technological infrastructure creating perfect harmonization of both worlds.

POPULATION 1 Mile 3 Mile 5 Mile

2022 Projection 6,127 45,110 96,285

2017 Estimate 5,947 43,502 91,888

2010 Census 5,759 41,635 86,072

Growth 2010 - 2017 3.26% 4.48% 6.76%

Growth 2017 - 2022 3.03% 3.70% 4.79%

HOUSEHOLDS 1 Mile 3 Mile 5 Mile

2022 Projection 2,650 18,544 36,450

2017 Estimate 2,578 17,911 34,749

2010 Census 2,507 17,187 32,471

Growth 2010 - 2017 2.83% 4.21% 7.01%

Growth 2017 - 2022 2.79% 3.53% 4.89%

INCOME 1 Mile 3 Mile 5 Mile

2017 Est. Average Household Income

$58,835 $62,671 $61,125

A R E AO V E R V I E W

Lynchburg is the city of opportunity when it comes to business. Strategically located with easy access to major markets, over 4,700 businesses choose to call Lynchburg home. Lynchburg companies do business with customers all over the globe, exporting ideas, innovation and some of the top manufacturing and machine projects there are. The cities retailers bring in an aggregated $1.6 billion in annual sales from over a quarter million local consumers and tourists a year. From mom-and-pops to high growth small businesses to headquarters of global corporations, Lynchburg is the commercial and retail hub of the Central Virginia region.

With a rising population and vibrant $8.74 billion economy, Forbes Magazine called Lynchburg one of the “Top 100 Best Small Places for Business and Careers.” Lynchburg is one of the “Top 20 Small Metros for Recruitment and Attraction” according to Expansion Management. The Milken Institute included Lynchburg among its “Best Performing Cities.”

Economy

11

Top Employers

12

Lynchburg Fast Facts

#23 For Number of Highly Concentrated High-tech Industries

Cost of living is 8.5% below the national average

Rated top 50 for Cost of Doing Business

Top 100 for Best Small Places for Business and Careers

Top 100 Most Affordable Cities in America

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Applebee’s located at 3219 Old Forest Road Lynchburg, VA 24501 (“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 TA T E M E N T

EXCLUSIVELY LISTED BY

3 2 1 9 O L D F O R E S T R O A D | LY N C H B U R G , VA 2 4 5 0 1

™

Representative Photo

Kyle MatthewsBROKER OF RECORDLIC # 022602771 (VA)

Steele McDonaldAssociateSTEELE.MCDONALD@MATTHEWS.COMDIR 214.692.2265MOB 615.417.3631LIC # 694333 (TX)

BROKER OF RECORD

Braden CrockettAssociate VP & DirectorBRADEN.CROCKETT@MATTHEWS.COMDIR 214.692.2040MOB 714.345.6206LIC # 01946071 (CA)

APPLEBEE’S