Freddy's Frozen Custard

Freddy’s frozen [ www.CapitalPacific.com] custard

Me rid ia SEAN MACK MICHAEL HORWITZ n Freddy’s Frozen Custard & Steakburgers , New Construction [email protected] | (503) 675-8378 [email protected] | (503) 675-8371

I D bOISE msa NNN Opportunity Meridian,ID BRE# SP34992 Idaho ID BRE# DB39718 KEVIN ADATTO PETER DUNN Eagle Road & Lanark Street, Meridian, ID 83642 [email protected] | (503) 675-7726 [email protected] | (503) 607-0197 ID BRE# SP39857 ID BRE# SP41756 Investment Highlights

FREDDY’S FROZEN CUSTARD AND STEAKBURGERS IS A SINGLE [ REPRESENTATIVE PHOTO ] TENANT ABSOLUTE NET LEASED PROPERTY LOCATED ON THE MAIN NORTH SOUTH THOROUGHFARE IN MERIDIAN, IDAHO.

This offering presents an opportunity to acquire a Freddy’s Frozen Custard building that is currently under construction with a scheduled completion date of September 2014. The property offers a new 15-year NNN lease with annual 1.5% rental increases two 10-year option periods.

The property is located in the city of Meridian, the fastest growing city in the State of Idaho. Meridian, which is located in the Boise area, has more than doubled in population since 2000.

Freddy’s Frozen Custard Meridian is located on North Eagle Road, the main north-south thoroughfare in Meridian. The property is also located less than a mile north of Interstate 84 that runs through the state.

PRICE: $2,682,782 CAP: 6.65%

RENTABLE SF. . . . 3,027 SF SITE AREA. . . . . 35,696 SF LEASE TYPE...... NNN YEAR BUILT. . . . . 2014 PARKING...... 38 STALLS

ADDRESS: Eagle Road & Lanark Street, Meridian, ID 83642

FREDDY’S | 2 [ REPRESENTATIVE PHOTO ] Investment Highlights

PERSONAL GUARANTEE Lease signed and guaranteed by high net worth entity comprised of two separate personal guaranties.

NEW 15-YEAR LEASE Franchisee executed a 15-year lease that commences at completion of building construction with 1.5% annual rental increases in both the primary term and two 10-year option periods.

BRAND NEW GROWING SUBMARKET The city of Meridian is the fastest growing city in the State of Idaho. Since the year 2000, Meridian’s population has increased by more than 15 YEAR 140%

LEASE NEW CONSTRUCTION

Construction is expected to be completed in September 2014

NNN LEASE PROVIDES PASSIVE MANAGEMENT 1.5% Annual Tenant is responsible for taxes, insurance, utilities, and repair and maintenance of the roof and all structural elements of the building rental increases NEW DEVELOPMENT CenterCal will complete The Village at Meridian in late 2014. This mixed-use development is less than 1 mile north of the Property and includes over 350,000 square feet of retail and a 400,000 square foot apartment complex

RAPID GROWTH The headquarters for Scentsy is located directly to the north of the site. There are roughly 500 employees in these buildings

FREDDY’S | 3 Aerial

1 MILE FROM THE VILLAGE AT MERIDIAN

CenterCal Properties is developing a large scale mixed-use project just north of Freddy’s Meridian. The Village at Meridian features upscale apparel and specialty retail, fine restaurants and cafes, Village Cinemas, and luxury office space. National DAILY brands occupying the center include Gordmans, Marshalls, Nike Factory Store,

and Petco. 54,328

KEY OTHER RETAILERS ALONG RETAIL CORRIDOR RETAIL CORRIDOR Ashley Furniture Office Depot Axiom Fitness Payless ShoeSource Babies ‘R’ Us Petco SUBJECT PROPERTY Big Al’s PetsMart Blimpie Pro Image Sports THE VILLAGE AT MERIDIAN THE VILLAGE AT MERIDIAN Buffalo Wild Wings Red Robin Charming Charlie Republic of Couture Chico’s Rosauers W Fairview Avenue Del Taco ShopKo Discount Tire Sleep Country 55 Francesca’s SmashBurger Gap Factory Store Soma LesSchwab Sportsmas LOFT Starbucks

Majestic Cinemas Subway N Eagle Road McDonald’s Sur La Table Nike Factory Store Taco Bell Norco Toys ‘R’ Us Old Navy Walgreens E Lanark Street O’Reilly Auto Parts W Franklin Road

BOISE 10 MILES

112,00 DAILY 84 30

FREDDY’S | 4 Site Plan

    



     

   

                                                                   

      

Site Plan Not To Scale FREDDY’S | 5 Financial Summary

PRICE $2,682,782 Price Per Square Foot: $886.28 Building Size (SF): 3,027 Site Area (SF): 35,696 Capitalization Rate: 6.65% Year Built: 2014 STABILIZED INCOME Per Square Foot Rent $58.94 $178,405 LESS Per Square Foot Taxes NNN $0.00 Insurance NNN $0.00 Total Operating Expenses $0.00 EQUALS NET OPERATING INCOME $178,405

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. [ REPRESENTATIVE PHOTO ]

FREDDY’S | 6 Rent Roll

TENANT INFO LEASE TERMS RENT SUMMARY Monthly Yearly Tenant Name Sq. Ft. Term Current Rent Monthly Rent Cap Rate Rent/FT Rent/FT Freddy's 3,027 1 $178,405 $14,867 6.65% $4.91 $58.94

2 $181,081 $15,090 6.75% $4.99 $59.82

3 $183,798 $15,317 6.85% $5.06 $60.72

4 $186,555 $15,546 6.95% $5.14 $61.63

5 $189,353 $15,779 7.06% $5.21 $62.55

6 $192,193 $16,016 7.16% $5.29 $63.49

7 $195,076 $16,256 7.27% $5.37 $64.45

8 $198,002 $16,500 7.38% $5.45 $65.41

9 $200,972 $16,748 7.49% $5.53 $66.39

10 $203,987 $16,999 7.60% $5.62 $67.39

11 $207,047 $17,254 7.72% $5.70 $68.40

12 $210,152 $17,513 7.83% $5.79 $69.43

13 $213,305 $17,775 7.95% $5.87 $70.47

14 $216,504 $18,042 8.07% $5.96 $71.52

15 $219,752 $18,313 8.19% $6.05 $72.60

Option 1 16 25 1.5% Annual increases

Option 2 26 35 1.5% Annual increases

Current Totals: 3,027 $178,405 $14,867 6.65% $4.91 $58.94

Lease Abstract

PREMISES/TERM TENANT Freddy’s Frozen Custard SQUARE FEET 3,027 SF DATE OF LEASE 3/10/2014 EXPECTED RENT COMMENCEMENT October 2014 EXPIRATION September 2029 OPTIONS Two 10-year with1.5% annual rental increases

REIMBURSEMENTS This is a standard NNN lease, Tenant shall pay directly for taxes, insurance and Common Area Maintenance.

TENANT REPAIRS Tenant is responsible for maintaining, repairing and replacing all structural elements of the Building, including the exterior of the Property.

[ REPRESENTATIVE PHOTO ]

FREDDY’S | 8 Freddy’s

ABOUT FREDDY’S FROZEN CUSTARD Freddy’s Frozen Custard & Steakburgers is a quick-service restaurant chain based in Wichita, Kansas. The company opened its doors in 2002, franchised in 2004, and now there are currently 113 Freddy’s restaurants across 18 states. From sandwiches to sundaes, Freddy’s makes food fresh to order. Freddy’s Frozen Custard has again been recognized by Franchise Times® Magazine, this time on its inaugural Fast and Serious list in the March issue. The list uses a 10-point formula to identify fast-growing franchise systems that also have staying power. It is based on three years of impressive unit and sales growth, and includes brands in other LEASE SIGNED industries, not just restaurants. & GUARANTEED For 2013, Freddy’s was again named among Entrepreneur Magazine’s “Franchise 500®”, repeated its recognition by BY VERY STRONG QSR® magazine as one of four “Rising Stars” in the Best Franchise Deals issue, Franchise Times® Magazine’s “Next 300 Franchise Chains” and was included among Inc. Magazine’s 500/5000 list of “Fastest Growing Private Companies”. In FRANCHISEE 2012, besides those recognitions repeated in 2013, Freddy’s was named one of Business Insider’s “8 Better Burger Chains Poised to Conquer America.”

ABOUT FRANCHISEE The franchisee is an investor group of very strong guarantors (ask Agent for more details) whom have a 40-unit franchise agreement with Freddy’s Custard’s in Arizona, Utah, and Idaho. They have been operating on behalf of this franchise for over 3 years and currently have two locations in Tucson, Arizona, one in St. George, Utah, and another in Surprise, Arizona. The Meridian store brings them to a total of 5 locations with leases signed to have 10 total stores within a year. They intend to open a total of 20 stores within 3 years. There are two separate personal guaranty’s on the lease.

FREDDY’S | 9 Market Intel & Demos

ECONOMY BOISEBOISE METROPOLITAN METROPOLITAN AREA AREA OVERVIEW OVERVIEW LARGEST EMPLOYERS: BoiseBoise is is the the capital capital and and most most populous populous city city of ofthe the state state of Idaho,of Idaho, as well as well as the as countythe county seat seatof Ada of County.Ada County. Located on the Boise River,Located it anchors on the theBoise Boise River, City-Nampa it anchors metropolitan the Boise City-Nampa area and is metropolitan the largest city area between and is Saltthe largestLake City, city Utah between and Portland, Boise Oregon. is the headquarters for several major companies, such AsSalt of Lakethe 2010 City, Census,Utah and the Portland, population Oregon. of Boise was 205,671. It is also the 99th largest U.S. city by population. The 2012as U.S. Boise Census Cascade LLC, Albertsons, J.R. Simplot Company, Idaho Pacific Lumber Company, Idaho Timber, WinCo PopulationAs of the 2010 Estimates Census, that the 212,303 population people of Boise reside was within 205,671. the Itcity. is also The the Boise 99th metropolitan largest U.S. city area by is population. home to about The 616,500 people Foods, Bodybuilding.com, and Clearwater Analytics. Other and2012 is U.S.the mostCensus populous Population metropolitan Estimates areathat in212,303 Idaho, people containing reside the within state’s the three city. largest The Boise cities; metropolitan Boise, Nampa, area and Meridian. major industries are headquartered in Boise or have large is home to approximately 616,500 people and is the most populous metropolitan area in Idaho, containing the manufacturing facilities present. The state government is state’s three largest cities; Boise, Nampa, and Meridian. also one of the city’s largest employers. SURROUNDING POPULATION 2013 HOUSEHOLD INCOMES The area’s largest private, locally based, publicly traded 3-Miles 5-Miles employer is Micron Technology. Others include IDACORP, 2010 79,414 188,317 1-MIles 3-Miles 5-Miles Inc., the parent company of Idaho Power, Idaho Bancorp, 2013 82,432 196,758 Median $58,074 $57,949 $57,030 Boise, Inc., American Ecology Corp., PCS Edventures.com Inc. 2018 89,165 213,478 Average $73,482 $81,755 $81,539 and Syringa Bancorp.

BOISE 10 MILES

ONtario Boise Meridian emmett 84 caldwell eagle 3 Mile Boise radius NAMPA Meridian

5 Mile radius

FREDDY’S | 10 Construction Details

FOUNDATION EXTERIOR WALLS ELECTRICAL PLUMBING Concrete footings with 4” on grade Metal stud with insulation, exterior skin 208/120 volt service Main water service is a concrete slab is a combination of EIFS and brick veneer 1.5” line

HVAC AMERICANS WITH DISABILITIES Property is ADA compliant. Three HVAC units- Two 7.5 tons and one 12.5 tons

PARKING ROOF 38 parking stalls with a cross access 60mm Thermoplastic agreement for parking lot with Mattress Firm Membrane Roofing with 20-year warranty

FREDDY’S | 11 A unique HUMAN THE CAPITAL PACIFIC EXPERIENCE - OUR DAILY COMMITMENT TO OUR CLIENTS RESULTS-DRIVEN client experience [ www.CapitalPacific.com]

[ REPRESENTATIVE PHOTO ]

SEAN MACK MICHAEL HORWITZ [email protected] | (503) 675-8378 [email protected] | (503) 675-8371 ID BRE# SP34992 ID BRE# DB39718

KEVIN ADATTO PETER DUNN [email protected] | (503) 675-7726 [email protected] | (503) 607-0197 ID BRE# SP39857 ID BRE# SP41756