Applebee's at Regency Mall 2521 S GREEN BAY RD, RACINE, WI 53406

APPLEBEE’S AT REGENCY MALL

2521 S GREEN BAY RD, RACINE, WI 53406 ™ OFFERING MEMORANDUM CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offering Memorandum contains select information pertaining to the business and affairs of Applebee’s located at 2521 S Green Bay Rd , Racine, WI 53406 (“Property”). It has been prepared by Matthews Retail Advisors . This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Retail Advisors . The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completweness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1. The Offering Memorandum and its contents are confidential;

2. You will hold it and treat it in the strictest of confidence; and

3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Matthews Retail Advisors expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Retail Advisors or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. APPLEBEE’S

2521 S GREEN BAY RD RACINE, WI 53406

TABLE OF CONTENTS

04. Executive Summary 06. Property Overview 12. Tenant Overview 14. Area Overview 16. Demographics

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Chuck Evans Kyle B. Matthews, CCIM Beau Beach Associate Chairman & CEO Broker of Record License No. 01469842 License No. 01963473 License No. 55685-90 O 949.432.4508 O 310.919.5757 M 925.323.2263 M 310.622.3161 [email protected] [email protected] EXECUTIVE SUMMARY Investment Highlights

EXCELLENT CORPORATE TENANT

• Ground lease (fee simple ownership) with a subsidiary of Wisconsin Hospitality Group, an Applebee’s franchisee with more than 100 locations in the Midwest • Applebee’s has been operating successfully at this location since 1995, with Three (3) years remaining on its lease, and Two (2), Five (5) year options with ten percent (10%) increases in each • Sales for Applebee’s are at an outstanding $485 PSF with the tenant paying $110,000 in percentage rent • Total occupancy cost is at a healthy 5.25% • Applebee’s has successfully operated at the center since 1995

INCREDIBLE RETAIL SYNERGY

• Mall outparcel – Applebee’s is located as an outparcel to the 800,000 SF Regency Mall in Racine, WI • Strong Retail Synergy – Applebee’s benefits from a strong collection of national tenants including Target, Boston Store, Ross Dress For Less, Burlington Coat Factory, Dunham’s Sports, Pier 1 Imports, hh Gregg, The Home Depot, Olive Garden, Chuck E. Cheese’s, IHOP, Burger King, Buffalo Wild Wings, and more • Applebee’s enjoys frontage on South Green Bay Road (30,000 cars per day) and is located at one of the entrances to the Regency Mall • Strong Population and Growth Data - Total population in a 5-mile radius exceeds 119,000 people with average household income exceeding $64,000; more than 246,000 people within 10 miles with average household income exceeding $66,000 • Consumer spending within 5 miles exceeds $1.1 billion

4 I Matthews Retail Advisors Executive Summary

APPLEBEE’S 2521 S Green Bay Rd Annualized Operating Data Racine, WI 53406 Annual Rent Rent/SF List Price...... $2,670,000 Current $173,684* $23.96 CAP Rate - Current �� 6.50% *Includes $110,000 percentage rent bases in $3.5 MM 2015 sales Gross Leasable Area ��±7,250 SF Lot Size ...... ±1.38 Acres (60,645 SF) Year Built ��1988

Tenant Summary

Tenant Trade Name Applebee’s Captains-Kenosha, Inc., a subsidiary of Wisconsin Tenant Hospitality Group Type of Ownership Fee Simple Lease Type NNN Ground Lease Landlord Responsibility None Lease Dated 8/15/1994 Rent Commencement Date 1/23/1995 Lease Expiration Date 1/31/2020 Term Remaining on Lease 3.08 Years Increases 10% Every Five (5) Years Options Two (2), Five (5) Year Options

Matthews Retail Advisors | 5 PROPERTY OVERVIEW

6 I Applebee’s Physical Description

Property Name Applebee’s 2521 S Green Bay Rd Property Address Racine, WI 53406 Assessor’s Parcel Number 2766 000023876033

Site Description Number of Stories One Year Built 1988 Gross Leasable Area (GLA) ±7,250 SF Lot Size ±1.38 Acres (60,645 SF) Type of Ownership Fee Simple Parking Shared Parking Ratio (Shopping 7.5 : 1,000 SF Center) Landscaping Professional Topography Generally Level

Construction Foundation Concrete Slab Framing Metal Exterior Masonry Parking Surface Asphalt Roof Flat

Matthews Retail Advisors | 7 Aerial

8 | Applebee’s Regional Map

Matthews Retail Advisors | 9 Tenant Map

10 | Applebee’s Bird’s Eye

S Green Bay Rd ±29,000 ADT

11 | Applebee’s Matthews Retail Advisors | 11 TENANT OVERVIEW

12 | Applebee’s

Tenant Applebee’s Neighborhood Grill and Bar Wisconsin Hospitality Group, LLC, was formed in 1998 to purchase and operate all 23 Applebee’s restaurants in Wisconsin. Shortly after Company Name Captains-Kenosha, Inc. experiencing initial growth with the Applebee’s brand, WHG purchased Parent Company Wisconsin Hospitality Group over 80 Pizza Huts in eastern and central Wisconsin, becoming the largest restaurant operating company in the state. Ownership Private No. of Locations ±100 The company was founded with a steadfast commitment to taking care of its guests, employees and communities. The leaders had a vision for Headquartered Wauwesha, Wisconsin an innovative restaurant-management company that provides quality Web Site www.applebees.com dining experiences for its guests while generating opportunities for Year Founded 1998 employees and managers at all levels. WHG’s proven profitability and business and community-based values have earned it a nationwide reputation. WHG has been selected as both a state and national finalist for the National Restaurant Association’s Restaurant Neighbor Award, which recognizes restaurants for providing outstanding community service and involvement.

Matthews Retail Advisors | 13

AREA OVERVIEW Racine, Wisconsin

Located at the mouth of the Root River on the shore of Lake Michigan, the city of Racine, Wisconsin, has been a center of commerce for more than 100 years. The city provides quick access to both Milwaukee and Chicago and is considered to be in the heart of the Chicago-Milwaukee MegaCity. It is the fifth largest city in Wisconsin and home to several international companies, including S.C. Johnson, Jockey International, Modine Manufacturing, CNH Global of Fiat, and Runzheimer International.

Racine was a center of innovation and a factory town almost from its founding. Today, manufacturing remains an important part of the Racine area’s economy; The region has over three hundred manufacturing firms which employ a large number of people. Racine County provides access to one of the largest markets in the world, while realizing a lower cost of doing business.

Top Employers

# Employer 1 All Saints Health Care System 2 S.C. Johnson & Son, Inc. 3 CNH America LLLC 4 Racine Unified School District 5 InSinkErator 6 Aurora Healtchare Hospital 7 City of Racine 8 Ruud Lightin 9 Nestle 10 BRP US INC.

14 | Applebee’sMatthews Retail Advisors | 14 Attractions

Racine County offers many cultural attractions, including the Racine Art Museum, the Charles A. Wustum Museum of Fine Arts, the Racine Symphony Orchestra and the Racine Zoological Gardens, which is located on the lakefront. The Racine Art Museum is the site of the largest collection of contemporary craft in America.

Lighthouses have come and gone along Racine County’s Lake Michigan shoreline, but none is more closely tied to the area than the Wine Point Lighthouse. It’s the oldest and tallest working lighthouse on Lake Michigan with a beacon that can be seen 19 miles away. A nearby building, which once housed a fog horn, has been transformed into a museum.

Downtown Racine is one of the Midwest’s most unique and vibrant lakefront communities. With its historic charm, boutiques, art galleries, international cuisine and museums, Downtown Racine is home to locally owned shops, galleries and night spots. Monument Square, the business district’s focal point, is the site of special events all year round, such as “The Big Chill” snow sculpting competition held in January and the “Music on the Monument” summer music series.

The city has recognized its waterfront as a valuable asset and has put forth an effective effort towards revitalizing it through the addition parks and open areas. North Beach, a short walk from Downtown Racine and the marinas, is 50 acres of beautifully groomed sand and clear water. Among the popular features are the Beachfront Oasis, a summer live music venue, picnic areas and Kids Cove.

In eastern Racine County, the Root River has several beautiful stretches of water where people can paddle upstream to Island Park or downstream to Lake Michigan and Racine Harbor. Alternatively, western Racine County has the Fox River Water Trail, which runs 14 miles from a put-in at the Michigan Conservation Area to a take-out at Burlington’s Bushell Park. The easy-to-paddle water trail passes through a lake, county parks and wildlife areas with scenery running from farmland to wetlands to woods.

Matthews Retail Advisors | 15 Demographics Population 1-Mile 3-Mile 5-Mile 2021 Projection 6,052 65,067 119,251 2016 Estimate 5,911 64,745 118,799 2010 Census 5,722 64,904 119,463 2000 Census 5,249 63,221 116,615 Growth 2016 - 2021 2.39% 0.50% 0.38% Growth 2010 - 2016 3.31% -0.25% -0.56% Growth 2000 - 2010 9.01% 2.66% 2.44%

Households 1-Mile 3-Mile 5-Mile 2021 Projection 2,687 26,525 47,449 2016 Estimate 2,597 26,180 46,936 2010 Census 2,462 25,849 46,613 2000 Census 2,058 24,747 44,842 Growth 2016 - 2021 3.47% 1.32% 1.09% Growth 2010 - 2016 5.45% 1.28% 0.69% Growth 2000 - 2010 19.63% 4.45% 3.95%

Income 1-Mile 3-Mile 5-Mile Income < $15,000 17.92% 10.77% 13.06% Income $15,000 - $24,999 11.32% 10.02% 11.61% Income $25,000 - $34,999 9.19% 11.10% 11.22% Income $35,000 - $49,999 18.45% 15.59% 15.08% Income $50,000 - $74,999 17.24% 19.06% 17.86% Income $75,000 - $99,999 9.71% 11.72% 11.11% Income $100,000 - $124,999 7.83% 9.21% 8.16% Income $125,000 - $149,999 3.50% 5.58% 5.13% Income $150,000 - $199,999 3.25% 3.97% 3.96% Income $200,000 - $249,999 1.24% 1.54% 1.41% Income $250,000 - $499,999 0.33% 1.18% 1.15% Income $500,000+ 0.02% 0.27% 0.26% 2016 Est. Average Household Income $56,653 $68,560 $65,348 2016 Est. Median Household Income $44,410 $53,316 $49,034

16 | Applebee’s Matthews Retail Advisors | 17 ™

Chuck Evans Kyle B. Matthews, CCIM Beau Beach Associate Chairman & CEO Broker of Record License No. 01963473 License No. 01469842 License No. 55685-90 O 949.432.4508 O 310.919.5757 M 925.323.2263 M 310.622.3161 [email protected] [email protected]