IHOP 7240 W 79Th Street, Bridgeview, IL 60455

OFFERING MEMORANDUM

IHOP ™ 7240 W 79th Street, Bridgeview, IL 60455 EXCLUSIVELY LISTED BY

Gary Chou Kevin Chang RANDY OLCZYK FVP & Senior Director Associate BROKER OF RECORD License No. 471.018001 License No. 01911222 (CA) License No. 01976724 (CA) O 310.919.5827 O 310.919.5828 M 714.928.8016 M 951.616.8918 [email protected] [email protected] ™ CONTENTS

4 INVESTMENT OVERVIEW Investment Highlights

6 FINANCIAL ANALYSIS Executive Summary Annualized Operating Data Tenant Summary

8 TENANT OVERVIEW IHOP The Offering Parcel Map Tenant Map

14 AREA OVERVIEW Bridgeview, IL Demographics Chicago, IL

™ INVESTMENT OVERVIEW

4 |IHOP - BRIDGEVIEW, IL Investment Highlights

LONG-TERM IMPROVING FUTURE CASH FLOW

• IHOP has successfully operated at this location since 1997 and recently signed a 15-year extension, showing excellent commitment to the site

• The offering provides a very rare opportunity for an investor to purchase a corporately backed lease with sales performance reporting on a monthly basis

• DineEquity, Inc. is one of the largest full-service restaurant companies in the world, with revenue in excess of $681 million

• Strong historical sales performance at the location (see broker for details)

• Absolute NNN investment with all expenses paid for directly by the tenant

• Good hedges against inflation via fixed 7% rental increases every 5 years

• Two 5-year options to renew

EXCELLENT REAL ESTATE FUNDAMENTALS

• Top Five MSA – Chicago is the third most populous city in the United States with over 2.7 million people living in the region

• Property is located down the street from Toyota Park which hosts world-class concerts and sporting events – Over 500,000 people visit the venue every year

• Healthy Mix of National Tenants - Nearby national tenants include Pizza Hut, Dollar General, ALDI, Panera Bread, Starbucks, Sears Outlet, K-Mart, Dunkin’ Donuts, McDonald’s and Taco Bell Amongst others

• Impressive Traffic Counts - There are over 45,000 vehicles per day traveling on 79th St and over 44,000 vehicles per day traveling on Harlem Ave

• There are over 15,500 residents in a 1-mile radius with an average household income exceeding $55,000

• There are over 132,000 residents in a 3-mile radius with an average household income exceeding $54,000

• There are over 369,500 residents in a 5-mile radius with an average household income exceeding $55,800

MATTHEWS REAL ESTATE INVESTMENT SERVICES | 5 FINANCIAL ANALYSIS

6 |IHOP - BRIDGEVIEW, IL Tenant Summary

IHOP Tenant Trade Name IHOP 7240 W 79th Street, Bridgeview, IL Type of Ownership Fee Simple List Price �� $3,335,130 Lease Guarantor Corporate CAP Rate - Current �� 5.75% Lease Type NNN Roof and Structure Tenant Responsible Gross Leasable Area ��± 4,964 SF Original Lease Term 20 Years Lot Size �� ± 1.10 Acres Lease Commencement Date 7/16/1997 Year Built ��1990 Rent Commencement Date 7/16/2017 Lease Expiration Date 7/15/2032 Term Remaining on Lease 15 Years Increases 7% Every 5 Years Options Two, 5-Year Options

Annualized Operating Data Loan Quote Monthly Rent Annual Rent Rent/SF Cap Rate 2017-2022 $15,980.83 $191,770.00 $38.63 5.75% Tenant IHOP 2022-2027 $17,099.49 $205,193.90 $41.34 6.15% Address 7240 W. 79th Street, Bridgeview, IL 2027-2032 $18,296.46 $219,557.47 $44.23 6.58% Loan Amount $2,265,900 Option 1 $19,577.21 $234,926.50 $47.33 7.04% LTV 65% Option 2 $20,947.61 $251,371.35 $50.64 7.54% Term 10 Years Amortization 25 Years Rate 4.37% Monthly Payment $12,428

Loan quote provided by Barrington Capital based on market conditions at this time. Actual rates and terms will vary based on market conditions at closing. Please contact Brian Krebs or Matt Marlin at the information below:

Brian Krebs: (949) 777-5988 or [email protected] Matt Marlin: (949) 777-5991 or [email protected]

MATTHEWS REAL ESTATE INVESTMENT SERVICES | 7 TENANT OVERVIEW

8 | IHOP - BRIDGEVIEW, IL Property Name IHOP Company Trade Name International House of Pancakes, LLC Parent Company Trade Name DineEquity, Inc. Ownership Public Credit Rating (S&P) B No. of Locations ± 1,700 No. of Employees ± 40,000 Headquartered Glendale, California Website www.ihop.com Year Founded 1958

TENANT OVERVIEW Since 1958, IHOP® has been the place where people connect over breakfast, enjoy study breaks, grab a bite before or after sporting events and so much more. The IHOP family restaurant chain continues to serve their world-famous pancakes and a wide variety of breakfast, lunch and dinner items that are loved by people of all ages. The casual dining restaurant offers pancakes, omelets, French toasts and waffles, crepes, burgers, sandwiches, soups, salads, hash brown stacks, desserts and beverages. International House of Pancakes, LLC also provides a line of syrups through retail stores, mass merchandisers and grocery outlets in the United States. Offering an affordable, everyday dining experience with warm and friendly service, IHOP restaurants are franchised and operated by Glendale, California-based International House of Pancakes, LLC, a wholly-owned subsidiary of DineEquity, Inc., and its affiliates. DineEquity, Inc. is one of the largest full- service restaurant companies in the world with more than 400 franchisee partners. STRATEGY As the leader in Family Dining, IHOP’s 99%-franchised system delivers strong free cash flow results that have been the hallmark of the brand’s financial performance for more than half a century. IHOP relies primarily on discounted value pricing and limited-time offers, such as its Free Pancake Giveaway, to drive traffic to its restaurants. The company operates in four segments: franchise operations, company restaurant operations, rental operations, and financing operations. With mostly franchised locations, the IHOP chain includes a dozen corporate-run locations used mostly for testing and training.

Focused on providing strategic, visionary leadership for their franchisees, DineEquity successfully brought Applebee’s and IHOP together in 2007 to revitalize the brands. The company’s dedicated focus combined with an expertise in brand revitalization and franchising have been the basis of their financial success in recent years. GEOGRAPHIC REACH DineEquity operates in more than 20 countries. International House of Pancakes, LLC operates and franchises a chain of restaurants in all 50 states, the District of Columbia, the U.S. Virgin Islands and Puerto Rico. Internationally, the company has locations in Canada, Bahrain, Dubai, Guam, Guatemala, Kuwait, Qatar, Saudi Arabia, The Philippines and Mexico. As of 2015, there were 1,650 IHOP restaurants in 50 states.

MATTHEWS REAL ESTATE INVESTMENT SERVICES | 9 Tenant Map

10 |IHOP - BRIDGEVIEW, IL The Offering Parcel Map

Property Name IHOP 7240 W 79th Street Property Address Bridgeview, IL 60455 Assessor’s Parcel Number 18-25-406-016 Zoning C-2, Bridgeview Site Description Number of Stories One Year Built 1990 Gross Leasable Area (GLA) ± 4,964 SF Lot Size ± 1.10 Acres (47,851 SF) Type of Ownership Fee Simple Parking ± 64 Surface Spaces Parking Ratio 12.89 : 1,000 SF Landscaping Professional N Topography Generally Level W 79th St ± 45,000 ADT

MATTHEWS REAL ESTATE INVESTMENT SERVICES | 11 North Bound

Subject Property

West 79th Street ± 45,000 ADT

12 | IHOP - BRIDGEVIEW, IL South Bound

West 79th Street Subject Property

Harlem Ave

MATTHEWS REAL ESTATE INVESTMENT SERVICES | 13 AREA OVERVIEW

14 | IHOP - BRIDGEVIEW, IL Bridgeview, IL

Bridgeview, Illinois is located in Cook County, 9 miles outside of Chicago. It is a nice change from the hustle and bustle of the big city. The green trees and suburban atmosphere is the perfect mix from the city in the near distance. Demographics For being so close to a big city, Bridgeview has a low crime rate with a higher Population 1 Mile 3 Mile 5 Mile average of students graduating with their high school degree or equivalent 2022 Projection 15,569 130,491 361,566 than the state. 2017 Estimate 15,522 129,796 360,361 The most popular industries within this region is manufacturing and construction, 2010 Census 15,369 128,256 357,500 while the most common occupations are construction management and sales. 2000 Census 15,186 124,001 344,219 Their is an equal amount of private and corporate companies throughout the Growth 2017 - 2022 0.30% 0.54% 0.33% city. The residents treat this city as a small town and provide for their residents. Growth 2010 - 2017 0.99% 1.20% 0.80%

Households 1 Mile 3 Mile 5 Mile 2022 Projection 5,373 45,980 128,139 Things to do 2017 Estimate 5,325 45,628 127,472 There are a lot of great activities to do right in Bridgeview. Head over to the 2010 Census 5,203 44,869 125,955 Brookfield Zoo to explore a constantly evolving environment. The zoo first 2000 Census 5,284 44,994 127,387 opened in 1934 and has changed the way zoos run. They are the first zoo Growth 2017 - 2022 0.91% 0.77% 0.52% to create moats and ditches as a way to view the animals, instead of cages. Growth 2010 - 2017 2.35% 1.69% 1.20% Brookfield was also the first to have a Panda Exhibit as well as a full indoor dolphins exhibit. The zoo is constantly pressing the boundaries and are Income 1 Mile 3 Mile 5 Mile constantly looking at what to do next. 2017 Est. Average $67,860 $70,776 $72,506 Household Income If you are a sports fan, Toyota Park is in the heart of Bridgeview. It is the home to the Chicago Fire (MLB), Chicago Red Stars (NWSL), and the Chicago Bliss (LFL). The stadium gained a large amount of press when it held the 2011 FIFA World Cup qualification match. The field is primarily for soccer, but they recently just hosted their first international rugby match.

MATTHEWS REAL ESTATE INVESTMENT SERVICES | 15 Chicago, IL

Nick named “The Windy City,” Chicago is the third- most populated city in the United States and the most populated city in the Midwest. The city is an international hub for finance, commerce, industry, technology, telecommunication, and transportation. O’Hare International Airport is the second-busiest airport in the world.

There is a lot going on in this city, with the rich culture, diverse people, and one-of-a-kind skyline, Chicago is a place all its own. This city holds so much history, whether it is the art on the streets, or the buildings that have a perfect mix of historic and new age.

Economy Chicago has a large world financial center, and is the second-largest central business district in the United States. Chicago was voted 9th on the list of the world’s richest cities. It is the base for countless corporate franchises such as Walgreens, Marshall Field’s , Sears, and Crate & Barrel.

Manufacturing, printing, publishing, and food processing helps Chicago’s economy as well. Boeing moved its headquarters into Chicago in 2001 with United Airlines following in 2011.

Conventions have also been a large provider for the city in recent years. Chicago has four interconnected buildings that is the largest convention center in the nation. The city is 3rd in the nation for holding the most conventions.

16 | IHOP - BRIDGEVIEW, IL Willis Tower Cloud Gate First named the Sears Tower, Willis Tower is the second-tallest building in the This public sculpture, that created by Anish Kapoor, is in the center of AT&T Plaza United States and the 16th-tallest building in the world. The tower is one of the at Millennium Park. Nicknamed “The Bean,” it weighs just over 110 tons. It was most popular tourist attractions. Over a million people come to visit the building a originally created for a design competition, but it has become such a hit within the year and see the amazing view from the observation deck. In recent years, United city that it has become a landmark. Airlines has become to largest tenant in the building.

Navy Pier John Hancock Center At 100-stories, John Hancock Center is the fourth-tallest building in Chicago and The Navy Pier is located on the Chicago shoreline of Lake Michigan. It is a great the eighth-tallest building in the United States. This building has everything from place to have some fun while seeing a different view of the city. The Pier has restaurants, offices, and condos. This observatory has the only open-air SKyWalk everything from kid attractions, restaurants, shops, and parks. There is something and has a restaurant over looking Lake Michigan. for everyone on Navy Pier. CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offering Memorandum contains select information pertaining to the business and affairs of IHOP located at 7240 W 79th Street, Bridgeview, IL 60455 (“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 completeness 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. OFFERING MEMORANDUM

EXCLUSIVELY LISTED BY

IHOP ™ 7240 W 79th Street, Bridgeview, IL 60455