Wendy's Absolute Net (NNN)issenbergbritti.com/commercial_real_estate/images/...Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal

OFFERING MEMORANDUM

Wendy's Absolute Net (NNN)ORLANDO, FL

CONFIDENTIALITY AND DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It isintended to be reviewed only by the party receiving it from Marcus & Millichap and should not be madeavailable to any other person or entity without the written consent of Marcus & Millichap. This MarketingBrochure has been prepared to provide summary, unverified information to prospective purchasers, andto establish only a preliminary level of interest in the subject property. The information contained hereinis not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made anyinvestigation, and makes no warranty or representation, with respect to the income or expenses for thesubject property, the future projected financial performance of the property, the size and square footageof the property and improvements, the presence or absence of contaminating substances, PCB's orasbestos, the compliance with State and Federal regulations, the physical condition of the improvementsthereon, or the financial condition or business prospects of any tenant, or any tenant’s plans orintentions to continue its occupancy of the subject property. The information contained in this MarketingBrochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap hasnot verified, and will not verify, any of the information contained herein, nor has Marcus & Millichapconducted any investigation regarding these matters and makes no warranty or representationwhatsoever regarding the accuracy or completeness of the information provided. All potential buyersmust take appropriate measures to verify all of the information set forth herein.


NON-ENDORSEMENT NOTICE

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lesseeidentified in this marketing package. The presence of any corporation’s logo or name is not intended toindicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus &Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus &Millichap, and is solely included for the purpose of providing tenant lessee information about this listingto prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOURMARCUS & MILLICHAP AGENT FOR MORE DETAILS.

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to bereliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus& Millichap conducted any investigation regarding these matters. Marcus & Millichap makes noguarantee, warranty or representation whatsoever about the accuracy or completeness of anyinformation provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm theaccuracy and completeness of all material information before completing any purchase. This MarketingBrochure is not a substitute for your thorough due diligence investigation of this investment opportunity.Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of thisProperty for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for exampleonly and do not represent the current or future performance of this property. The value of a net leasedproperty to you depends on factors that should be evaluated by you and your tax, financial and legaladvisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independentinvestigation of any net leased property to determine to your satisfaction with the suitability of theproperty for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal andfinancial advisors must request and carefully review all legal and financial documents related to theproperty and tenant. While the tenant’s past performance at this or other locations is an importantconsideration, it is not a guarantee of future success. Similarly, the lease rate for some properties,including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’sprojected sales with little or no record of actual performance, or comparable rents for the area. Returnsare not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, ormay fail to comply with other material terms of the lease; cash flow may be interrupted in part or inwhole due to market, economic, environmental or other conditions. Regardless of tenant history andlease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affectingthe intrinsic value of the property and the value of any long-term lease, including the likelihood oflocating a replacement tenant if the current tenant should default or abandon the property, and the leaseterms that Buyer may be able to negotiate with a potential replacement tenant considering the locationof the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate InvestmentServices and hold it harmless from any kind of claim, cost, expense, or liability arising out of yourinvestigation and/or purchase of this net leased property.

NET LEASED DISCLAIMER


Section 1 PRICING AND FINANCIAL ANALYSIS

Section 2 PROPERTY DESCRIPTION

Section 3 MARKET OVERVIEW

Section 4 DEMOGRAPHIC ANALYSIS

TABLE OF CONTENTS

Wendy's Absolute Net (NNN)


PRICING AND FINANCIAL ANALYSIS

Marcus & Millichap is pleased to present this single-tenant, absolute-net Wendy's Restaurant.

At close of escrow, the existing Wendy's operator willsign a brand new 20-year absolute triple-net lease. Thelease will include seven and a half percent increasesevery five years with four five-year options. The leasewill be absolute-net in nature, with no landlordresponsibilities.

The Wendy’s Company (NASDAQ: WEN), salesexceeded those of Burger King for the first time in thecompany's history. With sales of $8.5 billion (USD), thecompany ranked number two in hamburger chains.

Investment Highlights

■ Brand New 20-Year Lease

■ Absolute Triple-Net (NNN)

■ Zero Landlord Responsibilities

■ 7.5% Increases Every Five Years

■ Experienced Operator - Over 100 Wendy's in the United States

■ Scheduled for New Wendy's Prototype Remodel

■ Over 50,000 Vehicles Per Day

■ Approximately 275,000 Residents within 5 Miles

■ Average Household Income is above $60,000 within 5 Miles

■ Outparcel to Sams Club

■ Income Tax Free State

1

PRICING AND FINANCIAL ANALYSISWendy's Absolute Net (NNN)ORLANDO, FL

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. References to square footage or age are approximate. Buyer mustverify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap RealEstate Investment Services of Florida © 2015 Marcus & Millichap. All rights reserved.

INVESTMENT OVERVIEW

Annualized Operating Data7693 East Colonial DriveOrlando, FL 32807

Price $2,238,476

Down Payment 100% / $2,238,476

Rentable Square Feet 3,166

Price/SF $707.04

CAP Rate 5.25%

Year Built 1999

Lot Size 0.99 Acres

Type of Ownership Fee Simple

Location

Rent Increases Annual Rent Monthly Rent

Years 1 - 5 $117,520.22 $9,793.35

Years 6 - 10 $126,334.23 $10,527.85

Years 11 - 15 $135,809.30 $11,317.44

Years 16 - 20 $145,995.00 $12,166.25

Option One $156,944.62 $13,078.72

Option Two $168,715.47 $14,059.62

Option Three $181,369.13 $15,114.09

Option Four $194,971.81 $16,247.65

Base Rent ($37.12/SF) $117,520

Net Operating Income $117,520Total Return 5.25% / $117,520

2

Tenant Trade Name Wendy's

Ownership Private

Tenant Franchisee

Lease Guarantor Franchisee Guarantee

Lease Type Absolute Net

Roof and Structure Tenant Responsible

Lease Term 20 Years

Lease Commencement Date 8/1/2014

Rent Commencement Date 8/1/2014

Lease Expiration Date 2034

Term Remaining on Lease 20 Years

Increases 7.5% Every 5 Years


Tenant Summary

Tenant will Completely Remodel (Language written in Lease)Tenant will be responsible for Remodel ProjectLandlord will continue to collect rent during Remodel ProjectRemodeled Stores reflect a 25% Gain in Sales


FINANCIAL OVERVIEW

Annualized Operating Data7693 East Colonial DriveOrlando, FL 32807

Price $2,350,404

Down Payment 100% / $2,350,404

Rentable Square Feet 3,166

Price/SF $742.39

CAP Rate 5.00%

Year Built 1999

Lot Size 0.99 Acres

Type of Ownership Fee Simple

Location

Rent Increases Annual Rent Monthly Rent

Years 1 - 5 $117,520.22 $9,793.35

Years 6 - 10 $126,334.23 $10,527.85

Years 11 - 15 $135,809.30 $11,317.44

Years 16 - 20 $145,995.00 $12,166.25

Option One $156,944.62 $13,078.72

Option Two $168,715.47 $14,059.62

Option Three $181,369.13 $15,114.09

Option Four $194,971.81 $16,247.65

Base Rent ($37.12/SF) $117,520

Net Operating Income $117,520Total Return 5.00% / $117,520

Tenant Trade Name Wendy's

Ownership Private

Tenant Franchisee

Lease Guarantor Franchisee Guarantee

Lease Type Absolute Net

Roof and Structure Tenant Responsible

Lease Term 20 Years

Lease Commencement Date 8/1/2014

Rent Commencement Date 8/1/2014

Lease Expiration Date 2034

Term Remaining on Lease 20 Years

Increases 7.5% Every 5 Years

3

Tenant Summary



FINANCIAL OVERVIEW


PROPERTY DESCRIPTION

AERIAL PHOTO


5

PROPERTY DESCRIPTION

Local Map Regional Map

6

PROPERTY DESCRIPTIONWendy's Absolute Net (NNN)ORLANDO, FL


AREA MAPS


MARKET OVERVIEW

8

MARKET OVERVIEWWendy's Absolute Net (NNN)ORLANDO, FL

Market HighlightsEconomic diversity

■ While Orlando’s economy has a strong

tourism component, distribution, high-tech

and healthcare also are prevalent.

Pro-business environment

■ Florida has low state and local taxes and

no state personal income tax.

Population growth

■ Orlando’s population is expected to

increase by 1.9 percent annually over the

next five years.

Geography

The Orlando metro encompasses 4,012

square miles near the center of Florida.

There are numerous lakes scattered across

the region, and the topography is generally

flat with few impediments to development.

Citrus, melons and strawberries are some

of the agricultural products grown in the

metro.


ORLANDO

Orlando-Kissimmee Metro

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MARKET OVERVIEW

Metro

The Orlando metro comprises Osceola, Orange,

Seminole and Lake counties. The metro is one

of the largest in Florida with a population of 2.2

million and is expected to grow 1.9 percent

annually for the next five years. Orlando is the

area’s largest city, containing 249,800 residents.


Largest Cities in Metro by Population

Infrastructure

The region sits at the crossroads of Florida’s

Turnpike and Interstate 4 and an extensive

system of toll roads interconnect the metro,

which allows access from North to South and

East to West. Public transit is provided by the

Central Florida Regional Transportation

Authority, also known as LYNX, which offers bus

routes throughout Orange, Seminole and

Osceola counties. SunRail is the regions new

commuter rail. The first 32 miles of the line will

run from DeBary in Volusia County to Sand Lake

Road in Orange County, will begin service in

spring 2014. The second phase will connect

Sand Lake Road through Kissimmee to

Poinciana in 2016. Air transportation service in

the region is provided by Orlando International

Airport, Orlando Sanford International Airport,

Orlando Executive Airport and four smaller

airports. Toll roads interconnect the metro, which

allows access to the state from North to South

and East to West. A rail system helps move

freight across the state and the nation. By water,

Port Canaveral and the Atlantic Ocean are within

a 45-minute drive to the east, and the Port of

Tampa on the Gulf of Mexico is one hour to the

west.


Sources: Marcus & Millichap Research Services,Experian

Airports■ Orlando International, Orlando Sanford

International, Orlando Executive

■ Four smaller airports

Major Roadways

■ I-4, Florida's Turnpike

■ State Routes 408, 414417, 429 and 528

Rail■ Freight - CSX, Florida Central

■ Passenger and Commuter- Amtrak,

The Orlando Metro is:■ 85 miles from Tampa

■ 230 miles from Miami

■ 430 miles from Atlanta

■ 1,100 miles from New York City

ORLANDO

Orlando 249,800Alafaya 82,800Pine Hills 62,400Kissimmee 62,200Sanford 53,800Apopka 42,600

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Economy

Orlando is a top vacation destination and is

home to many theme parks and tourist

attractions. It has also become a popular site for

business meetings, with one of the nation’s

largest convention centers. Millions of visitors

travel to Orlando each year.

Key industries in the region include aerospace

and defense systems, modeling, simulation and

training, digital media, and biotechnology.

Orlando is quickly transforming into a center for

digital media, fueled by an expanding number of

software, simulation and entertainment

companies. Today, hundreds of digital media

companies are located in the metro.

The local life sciences, biotech and medical

technology industries also are strengthening.

Lake Nona Medical City is a 650-acre health and

life sciences park where medical care, research

and education are the primary focus of

businesses located in the park.

University of Central Florida (UCF) offers top-

ranked programs for engineering and computer

sciences, and its Technology Incubator helps

emerging technology companies, further

enhancing the climate for high-tech growth.

Adjacent to UCF are Lake Nona Medical City,

the Central Florida Research Park and the

ORLANDO

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Labor

The Orlando metro has a skilled labor force employing more than 1 million people. Over the next five

years, the metro will boast rapidly expanding employment gains: 2.2 percent each year, compared

with the U.S. average growth of 1.2 percent annually. Except for the manufacturing sector, all

employment segments will record growth during this period.

While the leisure and hospitality sector provides the largest portion of jobs in the metro at 21

percent, or around 224,000 positions, the local economy is diverse. The trade, transportation and

utilities sector accounts for 19 percent of total employment, professional and business services

maintains 16 percent, and education and health services employers hire 12 percent of workers.

The fastest growing employment sectors in Orlando through 2018 will be construction, registering 5

percent annual growth as the housing market recovers and employment gains drive the need for

additional housing units. The leisure and hospitality segment follows with 4.3 percent annual gains

expected as improving economic conditions in many parts of the nation and world bring additional

tourists to the metro.

ORLANDO

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Employers

For over 30 years, Orlando has been identified

with Disney World. In addition to six Disney

theme parks, the area contains other attractions

such as SeaWorld and Universal Orlando. Many

of the area’s major employers are tourism-

related.

Orlando is also one of the fastest-growing high-

tech centers in the country, led by efforts at the

University of Central Florida. The region has a

large concentration of laser and optics

manufacturers, with companies producing

everything from tattoo-removal lasers to laser-

guided systems that maneuver fighter planes.

The local manufacturing industry includes

Lockheed Martin Missiles and Fire Control,

Siemens AG, and Harris. The area is also home

to the National Center of Simulation,

internationally renowned for its research in laser

and optics, as well as for its unique

microelectronics technology training programs.

The region is an ideal place to film television

shows and motion pictures. State-of-the-art

soundstages, inimitable venues, year-round

filming capabilities, a highly skilled local crew

base and supportive communities have all

helped the industry grow into a $845 million

annual market. Creative local talent is also

Major Private Employers


ORLANDO

Walt Disney World Co.

Florida Hospital

Publix Super Markets Inc.

Universal Orlando

Orlando Health

Busch Entertainment Corp.

Lockheed Martin Corp.

Marriott International

Darden Restaurants Inc.

Starwood Hotels & Resorts Worldwide Inc.

13


Demographics

Expanding employment opportunities will draw a

steady stream of workers into the metro, pushing

population growth to an average of 1.9 percent

annually through the next five years. Since 2000,

the local population grew by about 35 percent to

2.2 million residents.

Much of the region’s population growth in recent

years occurred in the areas south of Orlando

and Walt Disney World and west of Kissimmee,

spurred by the completion of SR-417 and

improved access to Interstate 4.

The median household income, at $48,400

annually, will increase an average of 2.2 percent

per year through 2018. That said, the prevalence

of lower-paying tourism jobs will keep the

median household income below the national

rate going forward and will prevent many

residents from purchasing a home.

Homeownership in the metro stands at 62

percent, with the median home price resting

around $157,800.

The median age of Orlando’s residents is 36.6

years old, slightly below the U.S. median age of

37.3 years. More than half of the metro’s citizens

are in their working years.


ORLANDO

14


Quality Of Life

Orlando provides its residents with a remarkable

quality of life, highlighted by a warm, sunny

climate; professional sporting opportunities;

outdoor recreational activities; cultural venues;

world-famous attractions; and ocean beaches

nearby.

The region offers outstanding healthcare facilities

and exceptional community services such as

Orlando Health and Florida Hospital. In addition,

Florida residents are not required to pay a

personal state income tax.

Orlando features dozens of cultural opportunities,

including the Civic Theatre of Central Florida, the

Orlando Opera Company, the Orlando Ballet

Company and the Bach Festival Society. Also,

the Shakespeare Festival is held downtown every

year. For art lovers, there are a number of

galleries, as well as the Morse Museum and the

Orlando Museum of Art.

Amway Center is the new arena for the Orlando

Magic. The facility was built in an area in

downtown Orlando currently undergoing

redevelopment; a new performing arts center is

also nearby.

The Orlando region provides numerous higher-


The information contained in the market overview comes from sources deemed to be reliable, however, no representation, warranty orguarantee, express or implied, may be made as to the accuracy or reliability of the information contained herein. The most timely dataavailable at time of production, including estimates and forecasts, were used and may be subject to revision.

ORLANDO

15

MARKET OVERVIEW

Existing Assets Poised to Capture Greater Space Demand

Strengthening tourism and a resurgent housing industry will enhance improvements in retail propertyperformance in Orlando this year. More than 2.9 million square feet has been absorbed since theeconomy started to expand over four years ago, while developers have been stymied by a lack offinancing for projects and the slow pace of the recovery in housing. The delivery of new retail spacewill remain minimal this year, enabling existing properties to capture the projected increase in spacedemand. Meanwhile, economic indicators continue to brighten as local employers accelerate hiring.A more rapid recovery in housing will likely step up hiring in construction, residential real estate andhousing-related finance. The leisure and hospitality sector will also expand as a growing volume ofvisitors is driving hotel occupancy higher making advance booking trends promising as the marketheads into the summer season. Also, the initial leg of the SunRail commuter rail was completed inthe first quarter. Local officials estimate the rail will carry an average of 4,300 passengers daily,increasing traffic to retailers adjacent to train stations.

Investor interest in Orlando’s retail properties remains strong and more owners are bringing theirproperties to market before interest rates rise. Listings of properties in high-traffic areas with strongtenant mixes remain limited, generating multiple offers for assets in submarkets with new housingdevelopment nearby and access to major transportation corridors. Single-tenant net-leased assetswith corporate tenants are still in high demand, with cap rates near 5 percent for a nationaldrugstore, and rising an additional 50 basis points for a national restaurant chain, depending onlocation and lease terms. In the multi-tenant sector, cash buyers dominate as financing capacity stilllags. Well-located assets near the metro core are targeted below replacement cost. Institutionalinvestors, meanwhile, are buying the few grocery-anchored centers that hit the market at cap ratesin the mid-8 to 10 percent range, while initial yields for non-anchored properties vary from 10 to 14percent, depending on asset quality and location.


Employment: Led by hiring in the leisure and hospitality sector, employmentwill rise 3.3 percent in 2014, or by 35,700 jobs.

Construction: Builders will expand inventory by 0.5 percent in 2014 as717,000 square feet of space comes online. Last year, developers placed701,000 square feet into service.

Vacancy: Higher tenant demand and pre-leased development will slicevacancy 20 basis points this year to 7.9 percent. In 2013, vacancy declined30 basis points.

Rents: As vacancy tightens, asking rents will climb 1.8 percent to $14.98per square foot, the second annual rent gain since 2008. Last year, rentsrose 0.5 percent.

2014 Annual Retail Forecast


ORLANDO

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Economy

■ Over the past 12 months, employers in Orlando hired an additional 35,100 workers, liftingpayrolls by 3.3 percent. In this year’s opening quarter, more than 6,000 jobs were created, led byoutsized growth in retail jobs in the trade, transportation and utilities sector.

■ Four of the 11 employment sectors have returned to peak levels posted prior to the recession.Employers in the leisure and hospitality, and the education and health services sectors have ledthe recovery by hiring 34,000 and 21,500 workers, respectively.

■ Retail sales advanced 2.6 percent during the 12-month period ending in the first quarter, up fromthe 2.1 percent gain in the previous year. In 2014, retail sales will increase 7 percent.

■ Outlook: In 2014, hiring in the leisure and hospitality, and other services sectors will push up totalemployment 3.3 percent as employers create 35,700 jobs in the metro.


Construction

■ Developers remain cautious, though completions rose over the past year. During the period,638,000 square feet was completed, up from 439,000 square feet in the previous year.

■ The largest project completed over the past four quarters was a 115,000 square-foot shoppingcenter in Kissimmee. The property opened last summer 80 percent leased and features a lineupof discount stores.

■ The largest project under construction is the 427,000 square-foot Crosslands center in theKissimmee submarket. The shopping center will be completed in December this year and is 95percent pre-leased.

■ Outlook: Builders will expand inventory by 0.5 percent in 2014 as 717,000 square feet of spacecomes online. This year’s output is slightly above completions last year, when 701,000 squarefeet was placed into service.

ORLANDO

* ForecastSource: CoStar Group, Inc.

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Vacancy

■ At the end of the first quarter, vacancy was 8.0 percent, 40 basis points lower than thecorresponding period last year. Although it is still well above pre-recession levels, the vacancyrate has dropped 90 basis points since the height of the recession.

■ Multi-tenant vacancy fell 60 basis points in this year’s opening period to 9.7 percent. TheDowntown submarket, with vacancy above 50 percent within its speciality centers, has thehighest vacancy based on location and property type.

■ The University submarket posted a vacancy rate of 2.3 percent in the first quarter, marking a dropof 160 basis points from one year ago. St. Cloud has the second tightest retail sector withvacancy at 4.1 percent, 200 basis points lower than one year ago.

■ Outlook: Improving tenant demand and pre-leased development will slice vacancy 20 basis pointsthis year to 7.9 percent, the lowest level since 2008. In 2013, vacancy declined 30 basis points.

Rents

■ During the past year, operators capitalized on lower vacancy to lift asking rents 1.6 percent to$14.85 per square foot in the first quarter. Rent growth accelerated recently as asking rentsjumped 0.7 percent in the past six months.

■ The largest rent increase in the multi-tenant segment occurred in submarkets on the west andnortheast side of the market, including West University, West Outlier and Lake Mary. During thepast 12 months, asking rents for available space increased 23.6 percent, 16.9 percent and 13.2percent, respectively.

■ As vacancy improved, the average revenue advanced 2.0 percent during the past year. Averagerevenue, however, remains 10 percent below the pre-recession peak, an indication thatsignificant improvement in the sector remains to be realized.

■ Outlook: As vacancy tightens, asking rents will climb 1.8 percent to $14.98 per square foot, thesecond annual rent gain since 2008. Last year, rents rose 0.5 percent.


ORLANDO

* ForecastSource: CoStar Group, Inc.

18


Single-Tenant Sales Trends**

■ Single-tenant assets remain a primary investment target in the market as the number oftransactions increased 3 percent over the past year. During the prior 12 months, transactionssurged 60 percent.

■ Kissimmee and Melbourne had the highest velocity of sales as select properties traded with caprates in the low-7 percent range.

■ Across the metro, drugstores and fast-food establishments sold with average cap rates close to 5percent during the past year.

■ Outlook: Risk-averse buyers remain keen on local single-tenant properties, though someinvestors may wait for prices to reflect higher interest rates or target small multi-tenant propertiesoccupied by national-credit tenants.

Multi-Tenant Sales Trends**

■ Multi-tenant transaction velocity rose 23 percent during the most recent 12-month period. Anumber of neighborhood centers changed hands during the period, indicating greater confidencein the buyer pool and expanded access to acquisition debt.

■ The average price during the last year was $216 per square foot, down 6 percent from theprevious period. The average price dipped as smaller properties with less-creditworthy tenantschanged hands.

■ Cap rates average in the mid-7 to low-8 percent range, marking a compression of about 50 basispoints over the past year. On average, cap rates remain about 40 basis points above pre-recession levels.

■ Outlook: With heavy buyer interest and prices trending upward, owners with a shorter-terminvestment strategy will consider listing ahead of a further rise in the cost of borrowing.


ORLANDO

** Trailing 12-Month PeriodSources: CoStar Group, Inc., Real Capital Analytics

19



Local Highlights

■ Metro Orlando home prices, including distressed sales, increased by 14 percent year over year inFebruary. Month-over-month, Orlando-area home prices rose 0.5 percent during February.

■ This fall, Zen, a new $50 million, 266-unit upscale apartment complex near the Hyatt RegencyGrand Cypress Resort will break ground. The project is expected to create hundreds of temporaryconstruction jobs, while also providing more high-end apartments in fast-growing west OrangeCounty.

■ In convention hotels, occupancy hit a five-year peak in 2013, and this year’s opening of theexpanded Universal Orlando’s Wizarding World of Harry Potter will draw additional visitors to thearea.

■ Occupancy at Orlando hotels was 79.3 percent in the first quarter, representing an increase of260 basis points from the first three months of 2013. An increase in visitor volume supported a3.3 percent jump in occupied rooms during the period. Hotel construction has been muted, butwork proceeds on properties containing a total of 1,900 rooms.

■ Downtown Disney is undergoing a multi-year transformation that will double the number ofshopping and dining experiences available. Opening in phases starting in 2015, the area will berenamed Disney Springs. Development will be complete in 2016.

ORLANDO

Capital Markets

■ The Fed continues to feel confident about the economic recovery and projects it will improve,notwithstanding the disappointing growth in this year’s first quarter, which they believed to beimpacted by the harsh winter weather. The withdrawal of stimulus continues; at the end of April,the FOMC voted to reduce its monthly bond purchases by an additional $10 billion. The yield onthe 10-year U.S. Treasury remained in the mid- to high-2 percent range throughout the firstquarter, and is projected to stay in this range over the next few months.

■ The national retail sector posted a solid performance in the first quarter this year. The vacancyrate ticked down 20 basis points to 7.0 percent in the first three months of this year as totalemployment and retail spending grew, generating new demand for retail space. Completionswere also subdued, as only 6.9 million square feet was brought online. This year, new demandwill exceed completions and support a further drop in the national vacancy rate.

■ Regional and local banks increased their share of lending on retail properties to 13 percent thisyear as they escalated lending throughout 2013. Greater liquidity enhanced investors’ ability toobtain loans for the purchase of small unanchored shopping centers. Across all lendinginstitutions, the rising confidence in the strengthening economy is generating an abundance ofcapital, which, in turn, is providing more leverage in secondary and even tertiary markets.


DEMOGRAPHIC ANALYSIS

1 Mile 3 Miles 5 Miles2000 Population 8,579 93,152 249,4952010 Population 9,383 97,387 265,0332013 Population 9,664 101,155 274,6362018 Population 10,118 105,042 287,893

2000 Households 3,154 36,344 100,1902010 Households 3,513 38,921 106,5932013 Households 3,614 40,335 110,2882018 Households 3,811 42,311 116,565

2013 Average Household Size 2.64 2.51 2.43

2013 Daytime Population 3,021 41,756 108,490

2000 Median Housing Value $0 $86,090 $106,248

2000 Owner Occupied Housing Units 49.27% 51.79% 52.48%2000 Renter Occupied Housing Units 50.71% 43.94% 41.94%2000 Vacant 5.49% 4.38% 5.33%



$ 0 - $14,999 14.3% 14.8% 13.7%$ 15,000 - $24,999 15.2% 14.0% 12.9%$ 25,000 - $34,999 16.5% 13.7% 13.2%$ 35,000 - $49,999 19.3% 16.8% 16.3%$ 50,000 - $74,999 20.3% 18.4% 17.7%$ 75,000 - $99,999 6.8% 9.7% 10.7%$100,000 - $124,999 3.9% 5.7% 6.4%$125,000 - $149,999 2.0% 2.6% 3.1%$150,000 - $199,999 0.3% 2.1% 2.8%$200,000 - $249,999 0.3% 1.0% 1.3%$250,000 + 1.0% 1.2% 1.9%

2013 Median Household Income $37,764 $41,170 $43,4472013 Per Capita Income $18,668 $22,754 $25,988

2013 Average Household Income $49,612 $56,710 $63,758

Demographic data © 2012 by Experian.

21

DEMOGRAPHIC ANALYSISWendy's Absolute Net (NNN)ORLANDO, FL


DEMOGRAPHIC REPORT

Geography: 5 miles

Population

In 2013, the population in your selected geography was 274,636. The population has changed by 10.07% since 2000. It is estimatedthat the population in your area will be 287,893 five years from now, which represents a change of 4.82% from the current year. Thecurrent population is 49.7% male and 50.2% female. The median age of the population in your area is 33.2, compare this to the U.S.average which is 37. The population density in your area is 3,685.59 people per square mile.

HouseholdsThere are currently 110,288 households in your selected geography. The number of households has changed by 10.07% since 2000.It is estimated that the number of households in your area will be 116,565 five years from now, which represents a change of 5.69%from the current year. The average household size in your area is 2.43 persons.

IncomeIn 2013, the median household income for your selected geography is $43,447, compare this to the U.S. average which is currently$53,535. The median household income for your area has changed by -1.78% since 2000. It is estimated that the median householdincome in your area will be $49,069 five years from now, which represents a change of 12.94% from the current year.

The current year per capita income in your area is $25,988, compare this to the U.S. average, which is $28,888. The current yearaverage household income in your area is $63,758, compare this to the U.S. average which is $75,373.

Race & EthnicityThe current year racial makeup of your selected area is as follows: 74.64% White, 9.32% African American, 0.44% Native Americanand 4.32% Asian/Pacific Islander. Compare these to U.S. averages which are: 72.20% White, 12.65% African American, 0.96% NativeAmerican and 5.01% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 34.85% of the current year populationin your selected area. Compare this to the U.S. average of 16.55%.

HousingThe median housing value in your area was $106,248 in 2000, compare this to the U.S. average of $110,781 for the same year. In2000, there were 55,541 owner occupied housing units in your area and there were 44,386 renter occupied housing units in your area.The median rent at the time was $633.

EmploymentIn 2013, there are 108,490 employees in your selected area, this is also known as the daytime population. The 2000 Census revealedthat 66.1% of employees are employed in white-collar occupations in this geography, and 33.8% are employed in blue-collaroccupations. In 2013, unemployment in this area is 5.42%. In 2000, the median time traveled to work was 26.7 minutes.


22



SUMMARY REPORT

Number of people living in a given area per square mile.


23



POPULATION DENSITY

The number of people employed in a given area per square mile.


24



EMPLOYMENT DENSITY

Average income of all the people 15 years and older occupying asingle housing unit.


25



AVERAGE HOUSEHOLD INCOME

Two-way, average daily traffic volumes.Traffic Count data © 2012 by TrafficMetrix. All rights reserved.

26



TRAFFIC COUNTS

* Traffic Count Estimate

ORLANDO, FL

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