OFFERING MEMORANDUM Jack in the Box (Dark) · OFFERING MEMORANDUM I 7 Jack in the Box (Dark) 1596 E Main St, Duncan, SC 29334 ... The Chapman Cultural Center is Spartanburg’s cultural

O F F E R I N G M E M O R A N D U M I 1

Jack in the Box (Dark)1 5 9 6 E M a i n S t , D u n c a n , S C 2 9 3 3 4O F F E R I N G M E M O R A N D U M

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2 | J a c k i n t h e B o x ( D a r k ) - D u n c a n , S C

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Jack in the Box (Dark) located at 1596 E. Main St, Duncan, SC 29334 (“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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C O N T E N T S

4 INVESTMENT OVERVIEWInvestment Highl ights

6 FINANCIAL ANALYSISExecut ive SummaryAnnual ized Operat ing Data

8 PROPERTY OVERVIEWThe Offer ingSi te Descr ipt ionParcel MapTenant MapRegional Map

1 2 AREA OVERVIEWDemographics

E XC LU S I V E LY L I S T E D BY

KEVIN CHANGAssociate

[email protected] (310) 919-5828MOB (951) 616-8918LIC # 01976724 (CA)

GARY CHOUFVP & Director


LAWRENCE SHAWBROKER OF RECORD

LIC # 26145

4 | J a c k i n t h e B o x ( D a r k ) - D u n c a n , S CI N V E S T M E N T O 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

• Over $400,000 in Remaining Lease Payment – Approximately Three (3) Years Remaining of Corporately Guaranteed cash flow

• Excellent Traffic Counts – Property receives exposure to over 86,000 average daily traffic from I-85 and over 19,000 average daily traffic from East Main Street

• Strong Indication of Retail Success – Tenancy in the immediate area includes Chick-fil-A, Cracker Barrel, Zaxby’s, KFC, Taco Bell, Dunkin’ Donuts, QuikTrip, McDonald’s, Hardee’s, Pilot Travel Center, Marathon Gas, BP and more

• Conveniently Located Near Three Schools – Location is less than 5 minutes from near Spartanburg Community College, Florence Chapel Middle School and River Ridge Elementary

• Less than 5 miles from BMW’s North American Manufacturing Plant – This plant produces BMW X3, X4, X5 and X6 models for North America

• Approximately 10 minutes from the Greenville-Spartanburg International Airport – This is South Carolina’s second busiest airport with over 1.82 million travelers annually

• Greenville-Spartanburg International Airport Received a $102 Million Terminal Improvement in 2012 – Signifies economic growth in the surrounding areas

STRONG VALUE-ADD OPPORTUNITY

6 | J a c k i n t h e B o x ( D a r k ) - D u n c a n , S CF I N A N C I A L A N A L Y S I S


Jack in the Box (Dark)1596 E Main St , Duncan, SC 29334List Price ........................................................................................... $1,250,000

CAP Rate - Current ................................................................................ 10.95%

Gross Leasable Area .......................................................................± 2,837 SF

Lot Size ..........................................................................................± 0.96 Acres

Year Built ...................................................................................................... 2002

Annualized Operating DataMonthly Rent Annual Rent Rent/SF Cap Rate

Current - 7/1/2020O1: 7/2/2020 - 7/1/2022

$11,402.24 $136,827 $48.23 10.95%

O1: 7/2/2022 - 7/1/2025O2: 7/2/2025 - 7/1/2027

$12,542.46 $150,510 $53.05 12.04%

O2: 7/2/2027 - 7/1/2030O3: 7/2/2030 - 7/1/2032

$13,796.71 $165,560 $58.36 13.24%

O3: 7/2/2032 - 7/1/2035 $15,176.38 $182,117 $64.19 14.57%

Tenant Summary

Tenant Trade Name Jack in the Box (Dark)

Type of Ownership Fee Simple

Lease Guarantor Corporate

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 18 Years

Lease Commencement Date 7/2/2002

Rent Commencement Date 7/2/2002

Lease Expiration Date 7/1/2020

Term Remaining on Lease ± 3 Years

Increases 10% Every 5 Years

Options Three (3), 5-Year Options

8 | J a c k i n t h e B o x ( D a r k ) - D u n c a n , S CP R O P E R T Y O V E R V I E W


N

T h e O f f e r i n gProperty Name Jack in the Box (Dark)

Property Address 1596 E Main St

Duncan, SC 29334

Assessor’s Parcel Number 5-26-00-001.32

Site Description

Number of Stories One

Year Built 2002

Gross Leasable Area (GLA) ± 2,837 SF

Lot Size ± 0.96 Acres (41,817 SF)

Type of Ownership Fee Simple

Parking ± 32 Surface Spaces

Parking Ratio 11 : 1,000 SF

Landscaping Professional

Topography Generally Level

P a r c e l M a p

E Main St ±

19,000 ADT

1 0 | J a c k i n t h e B o x ( D a r k ) - D u n c a n , S C

Te n a n t M a p

O F F E R I N G M E M O R A N D U M I 1 1

R e g i o n a l M a p

SUBJECT PROPERTY

1 2 | J a c k i n t h e B o x ( D a r k ) - D u n c a n , S CA R E A O V E R V I E W


D u n c a n , S CDuncan is a town in Spartanburg, County and is located 30 minutes outside of Spartanburg, SC. Duncan is a friendly suburb of Greenville and is located near plenty of entertainment and amenities. The city is family friendly and fill with gorgeous landscapes and quality education systems. Duncan is conveniently located in between Downtown Greer and Spartanburg, SC. Duncan has been the site of many new housing developments; including Duncan Station, Escavera, Myers Park, Rainwater, and Sapphire Point.

Duncan is located near attractions such as Greenville Technical College, Spartanburg Technical College, University of South Carolina Upstate, Price House, and Walnut Grove Plantation. Duncan South Carolina’s most recognized attraction is Berry Shoals. It is a truss near the town of Duncan that stretched over a dam built on Berry Shoals in the South Tyger RIver for Tacapau Mills. It was previously used to supply electricity to Tacapau Mills and the village of Tacapau. Today the dam and powerhouse are owned by Startex-Jackson-Wellford-Duncan Water District.

D e m o g r a p h i c s

Population 3 Mile 5 Mile 10 Mile

2022 Projection 19,940 45,078 227,166

2017 Estimate 18,442 41,887 211,578

2010 Census 16,452 37,823 190,552

Growth 2017 - 2022 8.12% 7.62% 7.37%

Growth 2010 - 2017 12.10% 10.74% 11.03%

Growth 2000 - 2010 36.78% 28.91% 24.21%

Households 3 Mile 5 Mile 10 Mile

2022 Projection 7,408 16,992 84,436

2017 Estimate 6,885 15,839 78,848

2010 Census 6,206 14,393 71,496

Growth 2017 - 2022 7.59% 7.28% 7.09%

Growth 2010 - 2017 10.95% 10.05% 10.28%

Income 3 Mile 5 Mile 10 Mile

2017 Est. Average House-hold Income

$70,388 $71,892 $68,747

1 4 | J a c k i n t h e B o x ( D a r k ) - D u n c a n , S C

S p a r t a n b u r g , S C

Spartanburg is the largest city in and the county seat of Spartanburg County, South Carolina, and the twelfth largest city by population in the state.

Spartanburg has, throughout its history, been a fruitful home to a creative community. Cultural events and institutions abound in the city and county consistently draw large crowds. The Chapman Cultural Center is Spartanburg’s cultural anchor for history, art, theater, dance, music and science, is located in a three-building complex on the northern edge of downtown. The Showroom, the home of Hub-Bub, is a new center for progressive arts in the community. It houses a gallery, film screen, stage, and concert venue and is home to a nationally recognized artist residency program. Hub-Bub is the creative effort responsible for the founding of The Showroom and, as a project goal, seeks to attract and retain creative talent in the community.

Spartanburg is full of attractions and has a place for everyone. From museums to farmers markets and plenty of historic attractions. There is the Spartanburg Museum of Art, The Spartanburg Regional Museum of History, and The Spartanburg Science Center. Other points of interest include Lawson’s Fork Creek, The Cottonwood Trail, Hatcher Garden and Woodland Preserve.

S I E S T A K E Y


E c o n o m yWithin the past decade, developers and community leaders have spearheaded an effort to revitalize Spartanburg’s downtown commercial district. This has resulted in a remodel of Morgan Square, the restoration of a number of historic structures and the relocation of several businesses and company headquarters to the downtown vicinity. Some of the new developments include a nine-floor, 240-room Marriott, the headquarters of Advance America, and the headquarters of QS/1 Data Systems. The world headquarters of Denny’s restaurants is also located in downtown Spartanburg. Numerous other smaller businesses such as RJ Rockers Brewing Company have also moved downtown as a result of this community-wide effort. The economy of Spartanburg benefits from the BMW manufacturing facility located in the western end of Spartanburg County.

S p a r t a n b u r g C o u n t y - To p E m p l o y e r s

Employer # of Employees

BMW Manufacturing Corp 7,000

Spartanburg Regional Healthcare System

5,000

Milliken & Company 3,400

Spartanburg County Government 1,466

Spartanburg County School District 6 1,300

Adidas America Inc. 1,200

U.S.L.C. Inc. 1,200



Mary Black Healthy System, LLC 1,100

Dish Network Corp. 1,000

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E XC LU S I V E LY L I S T E D BY

Jack in the Box (Dark)1 5 9 6 E M a i n S t , D u n c a n , S C 2 9 3 3 4

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

KEVIN CHANGAssociate


GARY CHOUFVP & Director


LAWRENCE SHAWBROKER OF RECORD

LIC # 26145

Documents

OFFERING MEMORANDUM Jack in the Box (Dark) · OFFERING MEMORANDUM I 7 Jack in the Box (Dark) 1596 E Main St, Duncan, SC 29334 ... The Chapman Cultural Center is Spartanburg’s cultural