OFFERING EXCLUSIVE MEMORANDUM LISTING 2607 Blue Heron Drive Marion, IL 62901
ACTUAL PROPERTY PHOTO
Actual Property Photo The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is in- tended to be reviewed only by the party receiving it from Tiktin Real Estate Investment Services and should not be made available to any other person or entity without the written consent of Tiktin Real Estate Investment Services. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained CONFIDENTIALITY herein is not a substitute for a thorough due diligence investigation. Tiktin Real Estate Investment Services has not made any investigation, and makes no warranty or representation, with respect to the income or expenses AND DISCLAIMER for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the finan- cial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Tiktin Real Estate Investment Services has not verified, and will not verify, any of the information contained herein, nor has Tiktin conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.
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2 FINANCIAL ANALYSIS TABLE OF Pricing Analysis ...... 5 EXECUTIVE SUMMARY CONTENTS Investment Overview 7 Tenant Overview ...... 8-9 PROPERTY DESCRIPTION Property Photos 10 Property Details ...... 11 Local Aerial ...... 12-16 Local Retailer Map ...... 17 Regional Map ...... 18 MARKET OVERVIEW Market Overview ...... 20 COMPETITIVE PROPERTY SET Sales Comparables Map 22 Sales Comparables ...... 23-25 MARKET OVERVIEW Demographic Summary ...... 27-28
3 FINANCIAL ANALYSIS PRICING ANALYSIS
IHOP RESTAURANT LEASE SUMMARY FINANCIAL 2607 Blue Heron Drive, Marion, IL 62901 Lease Type Absolute Triple Net (NNN) OFFERING PRICE Roof And Structure Tenant Responsible ANALYSIS Price $1,833,000 Lease Guarantor Franchisee Cap Rate 6.00% Original Lease Term 15 Years NOI $110,000 Rent Commencement Date Close of Escrow Gross Leasable Area (GLA) 5,000 SF Lease Expiration Date 15 Years thereafter Price/Rentable SF $366.60 Remaining Lease Term 15 Years Lot Size 1.2 Acres Options 4 (5) Year Year Built 2016 Increases 10% Every 5 Years
ANNUALIZED OPERATING DATA RENT INCREASES ANNUAL RENT MONTHLY RENT CAP RATE Years 1 - 5 (22.00/SF) $110,000 $9,167 6.00% Years 6 - 10 ($24.20/SF) $121,000 $10,083 6.60% Years 11-15 ($26.62/SF) $133,100 $11,092 7.26%
Option 1 | Years 16 - 20 $146,410 $12,201 7.99% Option 2 | Years 21 - 25 $161,051 $13,421 8.78% Option 3 | Years 26 - 30 $177,156 $14,763 9.66% Option 4 | Years 31- 35 $194,872 $16,239 10.63%
BASE RENT ($22.00/SF) $110,000 TOTAL RETURN 6.00%/$110,000
5 EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS ■■ Substantial Franchisee Operates 160+ Locations ■■ Sale/Leaseback Absolute Triple Net Lease With 15 Year Base Term EXECUTIVE ■■ Attractive 10% Increases Every 5 Years SUMMARY ■■ Zero Landlord Responsibilities ■■ Approximately .4 Miles from Interstate 57 (I-57) ■■ Brand New Construction ■■ Surrounding Retailers Include Menards, Krispy Kreme Doughnuts, Logan's Roadhouse, Walmart Supercenter, Applebee's, Panera Bread, amongst others
INVESTMENT OVERVIEW Tiktin Real Estate Investment Services is pleased to present this IHOP Restaurant located at 2607 Blue Heron Drive, Marion, IL 62901. This property consists of approximately a 5,000-square-foot IHOP Restaurant built in 2016 and situated on 1.2 Acres. At the close of escrow, seller will sign a brand new 15 year Triple Net (NNN) lease. The lease will provide for zero landlord responsibilities, 10 percent increases every 5 years and four, 5 year options. Annual rent will be initially set at $110,000 per year. This property offers direct frontage, signage and access along Blue Heron Drive and The Hill Avenue. Additionally, this IHOP Restaurant is located just .4 miles from Interstate 57 (I-57) and sits across the street from Rent One Park, which is home of the Souther Illinois Minors of the Frontier League, an independent professional organization. The Mayor of Marion for more than 50 years, Bob Butler nicknamed the City of Marion "The Hub of the Universe." Located at the crossroads of Illinois Route 13 and Interstate 57, Marion serves as the center for shopping, dining, and entertainment in Souther Illinois. With access to Interstate 24 just to the south, Marion is a point of access to major cities like Chicago, Nashville, and St. Louis.
7 TENANT OVERVIEW
Property Property Single Tenant - Restaurant Property Address 2607 Blue Heron Drive, Marion, IL 62901 TENANT Tenant Tenant Trade Name IHOP Restaurant OVERVIEW Ownership Private Tenant Franchisee Lease Guarantor Franchisee Sales Volume N/A
LEASE Lease Commencement Date Close of Escrow Rent Commencement Date Close of Escrow Lease Expiration Date 15 Years thereafter Lease Type Absolute Triple Net (NNN) Roof and Structure Tenant Responsibility Lease Term 15 Years Year 1 Net Operating Income $110,000 Increases 10 Percent Every 5 Years
OPTIONS Options to Renew 4 (5) Year Options to Terminate N/A Options to Purchase N/A First Right of Refusal N/A
International House of Pancakes, stylized as its acronym, IHOP, is an American multinational pancake house/ fast casual family restaurant chain that specializes in breakfast foods. It is owned by DineEquity, with 99% of the restaurants run by independent franchisees. While IHOP's focus is on breakfast foods, it also offers a menu of lunch and dinner items. The company has 1,650 locations in North America, Latin America, the Middle East, Southeast Asia, and Oceania. It is known for many of its locations being open 24 hours a day, 7 days a week.
8 FRANCHISEE OVERVIEW
Principal - Andy Patel Anand D Patel, known as Andy, is the principal of a multi franchisee group which has been involved in the restaurant businesses for more than 29 years. Andy started his restaurant career in the late 1980's with Wendy's Restaurants in Laurel, Maryland. Within 6 months he was promoted to TENANT Assistant Manager, while holding part-time positions at McDonald's, OVERVIEW Domino's and Burger King. In 1992, Andy purchased his first restaurant and helped turn its operating loss into a profit within one year. In 1994, he purchased an IHOP restaurant from Corporate and doubled the revenue within one year. That year, he won an award for highest sales increase across all IHOPs nationwide. In 2002, he bought another restaurant and won the highest sales increase in the country. He has won various awards throughout his career for his management approach including "Franchisee of the Year" from Florida's IHOPs in 1994, 1995, and 2002. Since Andy's first IHOP restaurant purchase, he has expanded his portfolio to 5 IHOP Restaurants, 73 Burger King Restaurants, and 18 Pizza Hut Restaurants. He has also added 9 Applebee's Restaurants in New Mexico, 20 Applebee's Restaurants in Virginia, and recently another 22 Applebee's Restaurants in the Memphis Tennessee area. Andy manages over $250 million in revenue and just over 5,000 active employees with just as much dedication and conviction as he did when he started working in the industry. Besides being a successful Entrepreneur, Andy is a proud family man. He enjoys spending quality time with his beautiful wife of 20 years, Anissa, and 4 children. His favorite pastimes include watching football, basketball, and going to the movies. In addition to work, family, friends, and pastimes, he enjoys donating to various local charities and sits on the board for West Palm Beach Homeland Security.
9 PROPERTY PHOTOS
ACTUAL PROPERTY PHOTO PROPERTY DETAILS
THE OFFERING Property IHOP Restaurant Property Address 2607 Blue Heron Drive, Marion, IL 62901
SITE DESCRIPTION Gross Building Area: 5,000 SF (Approximately) PROPERTY Lot Size: 1.2 Acres Ownership: FEE SIMPLE DESCRIPTION Year Built: 2016 Number of Stories: 1 Stories Parking: N/A Parking Ratio: N/A Topography: FLAT
PARCELS Number of Tax Parcels 1 APN 06-11-351-001
CONSTRUCTION Foundation Concrete Framing Concrete Exterior Concrete Parking Surface Asphalt Roof Flat
MECHANICAL HVAC Central Air Fire Protection Fully Sprinkled & Monitored Utilities City of Marion
ZONING PUD: N/A
ACCESS POINTS Blue Heron Drive & The Hill Avenue
UTILITIES Gas Tenant Electric Tenant Water Tenant Sewer Tenant Trash: Tenant 11 PROPERTY DESCRIPTION
LOCAL MAP
12 PROPERTY DESCRIPTION
LOCAL MAP
13 PROPERTY DESCRIPTION
LOCAL MAP
14 PROPERTY DESCRIPTION
LOCAL MAP
15 PROPERTY DESCRIPTION
LOCAL MAP
16 PROPERTY DESCRIPTION
AERIAL PHOTO
SUBJECT PROPERTY
17 PROPERTY DESCRIPTION
REGIONAL MAP
SUBJECT PROPERTY
18 MARKET OVERVIEW MARION OVERVIEW
Marion is a city in and the county seat of Williamson County, Illinois, United States. The population was 17,193 at the 2010 census. It is part of a dispersed urban area that developed out of the early 20th Century coal MARKET fields. Today Marion serves as the largest retail trade OVERVIEW center in Southern Illinois with its central location along Interstate 57 and Illinois Route 13 (colloquially known as Southern Illinois' "Main Street"). It is home to the Illinois Star Centre mall and the Southern Illinois Miners baseball team, and is in the process of being selected for Illinois' first STAR Bonds District for the proposed Boulder Creek at The Hill development. The city is part of the Marion-Herrin Micropolitan Area and is a part of the Carbondale-Marion-Herrin, Illinois Combined Statistical Area with 123,272 residents, the sixth most populous Combined statistical area in Illinois. The city is also part of the unofficial Metro Lakeland area. Following the creation of Williamson County out of the south half of Franklin County by the Illinois General Assembly, three commissioners appointed by the lawmakers met at Bainbridge, Illinois, on August 19, 1839, for the purpose of locating a new county seat as close to the center of the county as possible. The next day, August 20, they laid out a town of 20 acres (81,000 m2) with a public square about one-quarter of a mile east of the county's center, but a point on top of a slight hill of 448 feet (137 m) above sea level. The site sat in a small open grassland known as Poor Prairie. For a name, they chose Marion to honor American Revolutionary War hero General Francis "Swamp Fox" Marion. William and Bethany Benson had entered the quarter-quarter section of land that contained the future site of Marion just the previous year on September 8, 1838. He had lived in the county at least since 1817, and was the first settler to enter land in Poor Prairie. At the time the commissioners platted Marion, he had a small crop of corn and wheat growing over what became the public square. The Williamson County Court organized in Marion on October 7, 1839, at the Benson log cabin. Overflow crowds had to use pumpkins for stools. The federal government established a post office at Marion on January 30, 1840, and the legislature incorporated the community as a city on February 24, 1841.
20 SALES COMPARABLES COMPETITIVE PROPERTY SET
SALES COMPARABLES MAP
3
4
SUBJECT PROPERTY
2 1
Recent Sales
Subject Property
1 IHOP - Wylie
2 IHOP - Atlanta
3 IHOP - Bridgeview
4 IHOP - Topeka
22 COMPETITIVE PROPERTY SET
Cap Rate
6.20%
6.00%
5.80%
5.60% Average 5.44%
5.40%
5.20%
5.00%
4.80% Subject IHOP - Wylie IHOP - IHOP - IHOP - Property Atlanta Bridgeview Topeka
Price SF
$1,000.00
$900.00
$800.00
$700.00 Average $634.00
$600.00
$500.00
$400.00
$300.00
$200.00
$100.00
$- Subject Property IHOP - Wylie IHOP - Atlanta IHOP - Bridgeview IHOP - Topeka
23 COMPETITIVE PROPERTY SET
SALES COMPARABLES
Subject Property 2607 Blue Heron Drive, Marion, IL 62901
Sales Price: $1,833,000 Cap Rate: 6.00% Price/SF: $366.60 Gross Leasable Area (GLA): 5,000 SF Lot Size: 1.20 Acres Year Built: 2016
1 IHOP - Wylie 2592 W FM 544, Wylie, Texas 75098
Close of Escrow: 7/19/2017 Sales Price: $2,875,000 Cap Rate: 5.50% Price/SF: $635.36 Gross Leasable Area (GLA): 4,525 SF Year Built: 2017 COMMENTS: At closing this was a Triple Net Lease with approximately 15 years remaining on a sale-leaseback. The guarantor was Argonne Capital and the lease calls for 1% annual increases.
2 IHOP - Atlanta 5516 Peachtree Industrial Blvd., Atlanta, GA 30341
Close of Escrow: 1/5/2018 Sales Price: $3,459,000 Cap Rate: 6.07% Price/SF: $986.03 Gross Leasable Area (GLA): 3,508 SF Year Built/Renovated: 1979/2012 COMMENTS: At closing, this was a Triple Net Lease with approximately 14 years remaining with three, 5-year options and 10% increases every 5 years. 24 COMPETITIVE PROPERTY SET
SALES COMPARABLES
3 IHOP - Bridgeview 7240 W 79th Street, Bridgeview, IL 60455
Close of Escrow: 11/27/2017 Sales Price: $3,225,000 Cap Rate: 5.95% Price/SF: $649.68 Gross Leasable Area (GLA): 4,964 SF Year Built/Renovated: 1990/2010 COMMENTS: At closing this was a Triple Net Lease with approximately 15 years remaining on the lease. IHOP has been at this location since 1997.
4 IHOP - Topeka 1731 SW Wanamaker Road, Topeka, KS 66604
Close of Escrow: 10/18/2017 Sales Price: $2,570,000 Cap Rate: 5.35% Price/SF: $532.31 Gross Leasable Area (GLA): 4,828 SF Year Built: 1999
25 DEMOGRAPHICS MARKET DEMOGRAPHIC POPULATION 1-MILE 5-MILES 10-MILES SUMMARY 2023 Population 1,283 28,050 62,964 OVERVIEW 2018 Population 1,283 27,901 62,714 2010 Population 1,285 27,138 61,399
HOUSEHOLDS 1-MILE 5-MILES 10-MILES 2023 Households 572 11,868 25,921 2018 Households 571 11,803 25,818 2010 Households 571 11,526 25,380 Growth 2018 - 2023 0.18% 0.55% 0.40% Growth 2010 - 2018 0.00% 2.40% 1.73% Owner Occupied Housing Units 303 7,866 18,266 Renter Occupied Housing Units 268 3,937 7,551 2018 Avg Household Income $59,098 $62,546 $60,934 2018 Med Household Income $44,931 $50,383 $48,505
INCOME 1-MILE 5-MILES 10-MILES $0 - $25,000 152 2,874 6,376 $25,000 - $50,000 157 3,001 7,050 $50,000 - $75,000 139 2,353 5,057 $75,000 - $100,000 50 1,314 2,573 $100,000 - $125,000 17 1,222 2,584 $125,000 - $150,000 12 427 921 $150,000 - $200,000 29 461 940 $200,000+ 13 151 316
27 DEMOGRAPHIC SUMMARY MARKET Geography: 10 Miles OVERVIEW POPULATION In 2018, the population in your selected geography was 62,714. The population has changed by 2.14% since 2010. It is estimated that the population in your area will be 62,964 five years from now, which represents a change of 0.40% from the current year.
HOUSEHOLDS There are currently 25,818 households in your selected geography. The number of households has changed by 1.73% since 2010. It is estimated that the number of households in your area will be 25,921 five years from now, which represents a change of 0.40% from the current year.
INCOME In 2018, the median household income for your selected geography is $48,505, compare this to the U.S. average which is currently $51,972.
The current year per capita income in your area is $25,085, compare this to the U.S. average, which is $26,694. The current year average household income in your area is $60,934, compared this to the U.S. average which is $72,641.
SUBMARKET DATA: ZIP CODE 62959
HOUSING The median sales price for homes within this area is $117,200 compared to the U.S. average which is $234,200.
EMPLOYMENT In 2018, there are 8,154 employees with full time Earnings, 5,128 with part time earning, and 9,281 with no earnings, in your selected area, this is also known as the daytime population.
Source: CoStar Demographics & United States Zip Codes.
28 EXCLUSIVELY LISTED BY: TIKTIN REAL ESTATE INVESTMENT SERVICES BROKER OF RECORD Tel: (305) 363-4750 STONE NORTH AMERICA, LLC Tel: (844) 4 - TIKTIN LICENSE: 481-012298 Fax: (305) 675-0774 www.TiktinRealEstate.com