Wendy’sFARMINGTON, UTAH

NEWLY CONSTRUCTED GROUND LEASE WENDY’S WITHIN THE REGIONAL SHOPPING DESTINATION, STATION PARK

Wendy’sN 1100 W BLOCK, PARK LN, FARMINGTON, UT 84025

Overview

THE OFFERING provides an opportunity to acquire a newly constructed Wendy’s Ground lease with approximately 13 years remaining, operated by NPC Quality Burgers and guaranteed by NPC International, the 5th largest restaurant franchisee in the United States with nearly 60 years of experience. The Property is located within Station Park, a dominant mixed-use shopping center with an expansive regional draw, anchored by major national tenants such as Cabela’s, Cinemark Theater, Nordstrom Rack, and the University of Utah Health Center, located just 15 miles north of Salt Lake City.

LEASEABLE SF2,481 SF

LAND AREA23,932 SF

LEASE TYPEGround Lease

LEASE EXPIRATION12/31/2032

YEAR BUILT2017

RENT INCREASES10% Every 5 Years

Investment Summary

5.00%CAP

$2,300,000PRICE

PAGE 5

BUILD-TO-SUIT WITH 13 YEARS REMAINING.

PART OF STATION PARK, A 1.2 MILLION SF MIXED-USE SHOPPING CENTER WITH STRONG DRAW PROVIDED BY SEVERAL MAJOR NATIONAL RETAILERS, RESTAURANTS, LODGING, AND HEALTH SERVICES.

BENEFITS FROM PAD LOCATION TO A REGIONAL DESTINATION RETAILER, CABELA’S.

EXPERIENCED, LARGE-SCALE FRANCHISEE IS THE 5TH LARGEST RESTAURANT UNIT OPERATOR IN THE U.S.

EXCELLENT VISIBILITY FROM THE MAIN ENTRANCE TO THE STATION PARK POWER CENTER OFF OF HIGHWAY 225 AND INTERSTATE 15.

HIGHLY ACCESSIBLE, LOCATED OFF AN INTERSTATE 15 ACCESS POINT, THE MAIN NORTH-SOUTH HIGHWAY ACCESSING SALT LAKE CITY TO THE SOUTH.

Investment Highlights

Aboutthe Tenant

1962 YEARFOUNDED 5th 5TH LARGEST

RESTAURANT UNIT OPERATOR IN THE U.S.

NPC INTERNATIONAL DBA WENDY’SCONCEPTS OPERATED: Wendy’s & Pizza Hut

LOCATIONS: 1,213 Pizza Hut’s & 386 Wendy’s Nationwide

EMPLOYEES: 36,500

CHARITABLE GIVING: Averaging over $1M annually since 2013

BENEFITS FROM A FRANCHISEE WITH A STRONG GUARANTY AND NEARLY 60 YEARS OF OPERATING EXPERIENCE

Investment Highlights

PAGE 7

STATION PARK creates a regional destination draw, anchored by Cinemark Theater, Cabela’s, Best Buy, Nordstrom Rack, and several other major national retailers and restaurants to go along with the Hyatt Place Hotel. The 1.2M square foot property is a mixed-use lifestyle center that also includes an event lawn, children’s play area, and a show fountain with music and LED lighting.

STATION PARK WEBSITE

STATION PARK SHOPPING & DINING DIRECTORY MAP

WENDY’S IS PROVIDED EXCELLENT VISIBILITY FROM THE MAIN ENTRANCE TO THE STATION PARK SHOPPING CENTER.

Station Park

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WENDY’S

MAIN ENTRANCE

STATION PARK WEST

Wendy’s is located in the portion of Station

Park referred to as Station Park West,

pad to a Cabela’s and adjacent outparcels.

PAGE 9

15LESS THAN

¼ MILE FROM I-15

120,360VPD

TENANT HAS NON-EXCLUSIVE RIGHT TO USE PORTIONS OF THE COMMON AREA FOR PARKING USE.

PARK LANEPARK LANE

Site

SUBJECTPROPERTY

NEW RETAIL STRIP,(PART OF STATION

PARK) INCLUDES: SLEEP NUMBER, JERSEY MIKE’S,

SPRINT, SPORT CLIPS, AND PIZZA HUT.

Site

PAGE 11

STATION PARKAppleAT&TBarnes & Noble (Opened Nov. 2019)Best BuyCabela’sCinemarkForever 21

H&MHomeGoodsMarshallsNordstrom RackOld NavyPetcoR.E.I. (Opened Spring 2019)Sally Beauty

SephoraSprintT-MobileULTARoss Dress for LessVerizon Wireless

TOTAL 1-MILE 3-MILES 5-MILES

Businesses 217 626 1,704

Employees 4,348 10,059 21,873

Population 7,996 39,567 77,581

KEY 1-MILE 3-MILES 5-MILES

BusinessSummary

Surrounding Retail

SephoraSprintT-MobileULTARoss Dress for LessVerizon Wireless

PARK LA

NE

PARK LA

NE

WENDY’S

15

225

225

225

89

89

120,360 VPD

30,330 VPD

15

Surrounding Retail

PAGE 13

PARK LA

NE

0.55ACRES

5 SPACES;2.0/1,000 SF

2,481 LEASEABLE SF

225*Tenant has a non-exclusive right to use

portions of the common area for parking.

Site Plan

SITE PLAN NOT TO SCALE

DRIVE THRU

The Seller is in the final stages of parcelizing the underlying land

from the greater Station Park West shopping center, and Wendy’s

should be situated on their own parcel by

March 2020.

CABELAS DRIVE

CABELAS DRIVE

ACCESS ROAD & PARKING

An access agreement is in place permitting cross-

easement access between all Station Park West

parcels, granting access from Park Dr. to Station

Parkway. All parcels grant cross-easement parking.

Site Plan

PAGE 15

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

Income & Expense

PRICE $2,300,000CAPITALIZATION RATE 5.00%

CASH FLOW SUMMARYSCHEDULED INCOME PER SFBase Rent for the Period of: 5/1/2020 - 4/30/2021 $46.35 $115,000Total Effective Gross Income (EGI) $46.35 $115,000

OPERATING EXPENSES PPeerr SSFFCAMS NNNProperty Taxes NNNInsurance NNNTotal Operating Expenses NNN

NET OPERATING INCOME $115,000

2/6/2020 [ <www.CapitalPacific.com> ]

Financial Summary

Rent Roll

12/30/2017 - 12/31/2032

2,481

MONTHLY BASE RENT % INCREASE ANNUAL

RENT PSF CAP RATE

12/30/2017 $9,583 $115,000 $46.35 5.00%1/1/2023 $10,542 10% $126,500 $50.99 5.50%1/1/2028 $11,596 10% $139,150 $56.09 6.05%

1 1/1/2033 $12,755 10% $153,065 $61.69 6.66%2 1/1/2038 $14,031 10% $168,372 $67.86 7.32%3 1/1/2043 $15,434 10% $185,209 $74.65 8.05%

CURRENT $9,583 $115,000 $46.35 5.00%

DATE

OPTIONS 33,, 55--YYrr OOppttiioonnss;; 227700 DDaayy''ss NNoottiiccee

LLeeaassee NNootteessComments: Tenant (NPC Quality Burgers) operates on a Ground Lease, guaranteed by the franchisee, NPC International, who operates 386 Wendy's stores in seven states, as well as 1,200+ Pizza Hut locations.

WENDY'S - STATION PARK

Lease Term:

Size (SF):

RENT SUMMARY

2/6/2020 [ <www.CapitalPacific.com> ]

RentRoll

COMMENTS: Tenant (NPC Quality Burgers) operates on a Ground Lease, guaranteed by the franchisee, NPC International, who operates 386 Wendy’s stores in seven states, as well as 1,200+ Pizza Hut locations.

Financial Summary

PAGE 17

TENANT NPC Quality Burgers, Inc., dba, Wendy’s

GUARANTOR NPC International, Inc.

Premise & Term

Maintenance &RepairTENANT’S OBLIGATIONSTenant is directly responsible for all maintenance, repair, and replacement to the Premises – structural and non-structural, including all plumbing, electrical, and mechanical operating systems.

LANDLORD’S OBLIGATIONSLandlord agrees to include snow/ice removal from Tenant’s drive-thru in their snow/ice removal of the common areas, and is responsible for the maintenance and repair of a certain area of land called Landlord’s Sitework Area, defined as Tenant’s landscaping.

Lease Abstract

CAMS Wendy’s pays a fixed CAM payment of $3.65/SF for Year 1 to increase 3% annually; this is reimbursement for common area maintenance of the greater shopping center, referred to as Station Park West.

TAXESTenant to pay taxes directly to the assessor.

INSURANCETenant reimburses their prorata share of Landlord’s liability insurance covering the common areas of the shopping center and directly maintains property insurance covering their building.

SALES REPORTINGTenant to provide a statement of gross sales within 30 days of request from Landlord, not be requested more than once per year and not within 60 days of each lease year.

PARKINGLandlord agrees to maintain a minimum of 4 stalls per 1,000 SF in the shopping center.

RIGHT TO GO DARKTenant has the right to cease operations at the Premises with 30 days prior notice to Landlord, yet is still responsible for all terms of the lease. If Tenant is dark for more than 60 days, Landlord has the right to terminate the lease and recapture the premises with 30 days’ notice.

IMPROVEMENTSOwnership of the building will revert to Landlord upon lease expiration.

Misc. Lease Provisions

Expenses

Lease Abstract

PAGE 19

Farmington, Utah

FARMINGTON is largely a bedroom community, a suburb approximately 10 miles north of Salt Lake City. The city, once known for being home to the Lagoon Amusement park, now has a regional destination commercial center (Station Park) driving growth and is in the midst of adding another major commercial development that could greatly change the area dynamic.

Location

NORTH STATION BUSINESS PARK: A $1B MIXED-USE BUSINESS PARK has been proposed just north of Station Park. The 300-acre development has the potential to bring 10,000 jobs to the area and place the region’s largest employment center right next to one of the region’s largest commercial centers, in Station Park.

HIGHWAY IMPROVEMENT IS COMING SOON to Highway 89. A 9-mile stretch from Farmington up to South Weber will be expanding to a six-lane highway and eliminating intersections and replacing them with interchanges and overpasses.

HOME TO THE LAGOON, a 95-acre amusement park featuring ten roller coasters and a water park. The park has been open more than 130 years and is located across the interstate from the Station Park power center, adding to the regional draw.

Highway 89Expansion

LagoonAmusement Park

New Developments

Location

PAGE 21

20.8 MILES21 MINS

Ogden, Utah

18.4 MILES21 MINS

Salt Lake City,Utah

DistanceTo

KEY 5 MINS 10 MINS 15 MINS

Demographics

POPULATION

5 MINS 10 MINS 15 MINS

2010 8,890 56,712 182,128

2019 13,348 69,260 214,392

2024 15,686 76,252 234,514

2019 HH INCOME

5 MINS 10 MINS 15 MINS

Average $125,556 $115,663 $99,392

Median $101,281 $95,201 $80,502

DriveTime

DAVIS COUNTY POPULATION (ESTIMATED)

347,637

Demographics

PAGE 23

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KEVIN ADATTOkadatto@capitalpacific.comPH: 503.675.7726

MICHAEL HORWITZmhorwitz@capitalpacific.comPH: 503.675.8381

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The information in this Executive Summary has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. All rights reserved to Capital Pacific, LLC.

MICHAEL LOWESmlowes@capitalpacific.comPH: 503.210.4069

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