Exclusive Net-Lease Offering Memorandum

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Exclusive Net-Lease Offering Memorandum EXCLUSIVE NET-LEASE Actual Photo OFFERING MEMORANDUM 1410 N Ocean Blvd, Myrtle Beach, SC 29577 Confidentiality and Disclaimer Marcus & Millichap hereby advises all prospective purchasers of properties, including newly-constructed facilities or newly- income or expenses for the subject property, the future projected Net Leased property as follows: acquired locations, may be set based on a tenant’s projected financial performance of the property, the size and square sales with little or no record of actual performance, or footage of the property and improvements, the presence or The information contained in this Marketing Brochure has been comparable rents for the area. Returns are not guaranteed; the absence of contaminating substances, PCB’s or asbestos, the obtained from sources we believe to be reliable. However, tenant and any guarantors may fail to pay the lease rent or compliance with State and Federal regulations, the physical Marcus & Millichap has not and will not verify any of this property taxes, or may fail to comply with other material terms of condition of the improvements thereon, or the financial information, nor has Marcus & Millichap conducted any the lease; cash flow may be interrupted in part or in whole due to condition or business prospects of any tenant, or any tenant’s investigation regarding these matters. Marcus & Millichap makes market, economic, environmental or other conditions. Regardless plans or intentions to continue its occupancy of the subject no guarantee, warranty or representation whatsoever about the of tenant history and lease guarantees, Buyer is responsible for property. The information contained in this Marketing Brochure accuracy or completeness of any information provided. conducting his/her own investigation of all matters affecting the has been obtained from sources we believe to be reliable; intrinsic value of the property and the value of any long-term however, Marcus & Millichap has not verified, and will not verify, As the Buyer of a net leased property, it is the Buyer’s lease, including the likelihood of locating a replacement tenant if any of the information contained herein, nor has Marcus & responsibility to independently confirm the accuracy and the current tenant should default or abandon the property, and Millichap conducted any investigation regarding these matters completeness of all material information before completing any the lease terms that Buyer may be able to negotiate with a and makes no warranty or representation whatsoever regarding purchase. This Marketing Brochure is not a substitute for your potential replacement tenant considering the location of the the accuracy or completeness of the information provided. All thorough due diligence investigation of this investment property, and Buyer’s legal ability to make alternate use of the potential buyers must take appropriate measures to verify all of opportunity. Marcus & Millichap expressly denies any obligation property. the information set forth herein. to conduct a due diligence examination of this Property for Buyer. By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it NON-ENDORSEMENT NOTICE Any projections, opinions, assumptions or estimates used in this harmless from any kind of claim, cost, expense, or liability arising Marketing Brochure are for example only and do not represent out of your investigation and/or purchase of this net leased Marcus & Millichap Real Estate Investment Services, Inc. the current or future performance of this property. The value of a property. (“M&M”) is not affiliated with, sponsored by, or endorsed by any net leased property to you depends on factors that should be commercial tenant or lessee identified in this marketing package. evaluated by you and your tax, financial and legal advisors. CONFIDENTIALITY AND DISCLAIMER The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or Buyer and Buyer’s tax, financial, legal, and construction advisors The information contained in the following Marketing Brochure is endorsement by, said corporation of M&M, its affiliates or should conduct a careful, independent investigation of any net proprietary and strictly confidential. It is intended to be reviewed subsidiaries, or any agent, product, service, or commercial listing leased property to determine to your satisfaction with the only by the party receiving it from Marcus & Millichap and should of M&M, and is solely included for the purpose of providing suitability of the property for your needs. not be made available to any other person or entity without the tenant lessee information about this listing to prospective written consent of Marcus & Millichap. This Marketing Brochure customers. Like all real estate investments, this investment carries significant has been prepared to provide summary, unverified information risks. Buyer and Buyer’s legal and financial advisors must request to prospective purchasers, and to establish only a preliminary ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE and carefully review all legal and financial documents related to level of interest in the subject property. The information CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE the property and tenant. While the tenant’s past performance at contained herein is not a substitute for a thorough due diligence DETAILS. this or other locations is an important consideration, it is not a investigation. Marcus & Millichap has not made any investigation, guarantee of future success. Similarly, the lease rate for some and makes no warranty or representation, with respect to the 1410 N Ocean Blvd, Myrtle Beach, SC 29577 Table of Contents Investment Overview 4 Location Overview Tenant Overview Surrounding Area - Hotels 22 BurgerFi 5 Local Market – New Developments 23 The General Store 6 Demographics 24 ATM – First Citizens Bank 7 Local Map 25 American Resort Management 8 Regional Map 26 Starbucks 9 Market Overview 27 Bandito’s Restaurant and Cantina 10 Tin Roof – Myrtle Beach 11 Property Photos 12-21 Actual Photo Investment Overview PRICE: $23,572,157 | CAP: 5.75% | NOI: $1,355,399 Property Description Property THE Blvd Property Address 1410 N Ocean Blvd City, State, ZIP Myrtle Beach, SC 29577 Year Built 2018 Type of Ownership Fee Simple Total Leasable Area 42,472 SF Lot Size 0.72 Acres Number of Floors 3 Number of Suites 7 + ATM Suites Leased 100% Qualified Opportunity Zone Yes Offering Summary INVESTMENT HIGHLIGHTS Price $23,572,157 One of the Nations’ Fastest Growing Markets: Myrtle Beach, SC CAP Rate 5.75% continues to rank as one of the fastest-growing family and vacation Net Operating Income $1,355,399 destinations in the nation, attracting roughly 19 million visitors Price/SF $550.00 annually. Average Rent/SF $31.91 Lease Type Triple-Net (NNN) Proximity to Key Demand Drivers: THE Blvd satisfies an immediate Roof and Structure Landlord market need by providing highly desired amenities and entertainment to the neighboring hotels that do not provide such Tenant Mix services. Space 1 BurgerFi Space 2 The General Store Exceptional Location and Build: State of the art construction, Space 3 + 4 American Resort Management (Arcade) immediate access to substantial public parking, and located in the Space 5 Starbucks heart of Myrtle Beach. Space 6 Bandito’s Restaurant and Cantina Space 7 Tin Roof Myrtle Beach 100% Leased: 100% pre-leased with NNN leases prior to Space ATM First Citizens Bank completion of construction. The Blvd – Myrtle Beach, SC 4 Tenant 1: BurgerFi General Information Annualized Operating Data Tenant Trade Name BurgerFi Rent Period Monthly Rent Annual Rent % Increase Ownership Private Year 1 $8,333.33 $100,000.00 - Tenant BurgerFi Enterprises, LLC Year 2 $8,500.00 $102,000.00 2.0% Lease Type Triple Net Year 3 $8,670.00 $104,040.00 2.0% Lease Commencement 8/23/2018 Year 4 $8,843.40 $106,120.80 2.0% Base Lease Expiration 8/31/2028 Year 5 $9,020.27 $108,243.22 2.0% Base Lease Term 10 Years Year 6 $9,200.67 $110,408.08 2.0% Rent Increases 2.0% Annual Year 7 $9,384.69 $112,616.24 2.0% Renewal Options Two (2), Five (5) Year Options Year 8 $9,572.38 $114,868.57 2.0% Increases in Options 2.0% Annual Year 9 $9,763.83 $117,165.94 2.0% % GLA 10.72% Year 10 $9,959.11 $119,509.26 2.0% Roof & Structure Landlord Responsible Options Common Area Tenant's Pro-Rata Expense Option Years 11-15 $10,158.29 $121,899.44 2.0% Annual Real Estate Taxes Tenant's Pro-Rata Expense Option Years 16-20 $11,215.57 $134,586.83 2.0% Annual Insurance Tenant's Pro-Rata Expense Guarantor Corporate LANDLORD EXPENSE REIMBURSEMENTS 10.72% GLA 4,555 SF Headquartered Palm Beach, FL Operating Expense Annual Amount Amount PSF Number of Locations 106 CAM $6,832.50 $1.50 Website www.burgerfi.com CAM Admin Fee (10%) $683.25 $0.15 Insurance $6,832.50 $1.50 Taxes $17,309.00 $3.80 Marketing Fund $4,555.00 $1.00 Year 1 Rent $100,000.00 $21.95 Unit Total $136,212.25 $29.90 BurgerFi is an American fast casual restaurant chain focused on all-natural hamburgers, French fries, hot dogs, and custard. The first location was opened in February 2011 in Lauderdale-by-the-Sea, Florida. The chain has expanded to over 100 locations since its foundation and was one of the fastest-growing fast food chains in the U.S. in 2015. BurgerFi operates in more than 20 US states, and in three other countries: Panama, Mexico and Kuwait. Actual Photo The Blvd – Myrtle Beach, SC 5 Tenant 2: The General Store General Information Annualized Operating Data Tenant Trade Name The General Store Rent Period Monthly Rent Annual Rent % Increase Ownership Private Year 1 $9,362.50 $112,350.00 - Tenant ANI CREATION, Inc.
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