Wendy’sExclusive | Listing Stuart, FL Offering Memorandum

Wendy’s | Stuart, FL

Representative Photo

PATRICK NUTT ROBERTO SUSI MANAGING PARTNER PRINCIPAL (954) 302-7365 (305) 932-8550 [email protected] [email protected] CALKAIN.COMCALKAIN.COM www.axiom-cap.com 1 Wendy’s | Stuart, FL Offering Memorandum

Rent Schedule Financial Summary Term Increases Annual Rent Monthly Rent 7/1/2008 - 6/30/2013 - $112,000.00 $9,333.33 726 SW Federal Hwy | Stuart, FL 34994 7/1/2013 - 6/30/2018 7% $119,840.00 $9,986.67 Asking Price $1,973,000 | Cap Rate 6.50% 7/1/2018 - 12/18/2023 7% $128,228.80 $10,685.73 12/19/2023 - 12/18/2028 7% $137,204.81 $11,433.73 (Option 1) Net Operating Income (NOI) $128,228.80 (as of 7/1/2018) 12/19/2028 - 12/18/2033 7% $146,809.14 $12,234.10 Rent/Month $10,685.73 (Option 2) 12/19/2033 - 12/18/2038 7% $157,085.77 $13,090.48 Rentable Square Feet 3,046+/- SF (Option 3) 12/19/2038 - 12/18/2043 Land Area 0.67+/- Acres 7% $168,081.77 $14,006.81 (Option 4) Tenant Starboard Group of Space Coast, LLC

Credit Rating S&P: B Investment Highlights

Stock Symbol Nasdaq: WEN •• Large 180 unit franchisee operator •• Adjacent to Publix anchored shopping center Guarantor Franchisee (Starboard Group) •• Hard corner location at lighted intersection Ownership Type Fee Simple

Lease Type NNN

Landlord Responsibilities None

Store Opened 1995

Lease Term Remaining 5+ Years

Lease Expiration December 18, 2023

Increases 7% Every 5 Years

Options Four (4), Five (5) Years Actual Site

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Tenant Overview

About Wendy’s Company Wendy’s At A Glance The Wendy’s Company (Nasdaq: WEN) is the #2 chain in the US behind #1 Restaurants Worldwide McDonald’s and just in front of #3 chain . As of January 2, 2017, there were a total of 6,537 locations, including 330 that are company-owned. 6,207 restaurants 6,537 are franchised, and 77% of them are located in North America. While Wendy’s sets 2017 Company Revenue standards for exterior store appearance, food quality, and menu, individual owners $1.22 Billion have control over hours of operations, interior decor, pricing and staff uniforms and wages. 2016 Average Annual Sales Per Wendy’s menu consists primarily of , chicken , French fries and beverages, including Domestic Restaurant (System) the signature Frosty, which is a soft-serve frozen dairy dessert. Since phasing out their famous “Big Classic”, the $1.57 Million company does not have a signature , such as the Burger King or the McDonald’s - although, by default, the “signature sandwich” spot seems to have been filled by Dave’s 1/4 lb. Single (introduced 2016 North America Company- in 2011 as Dave’s Hot ‘N Juicy as a reworking of the longstanding Wendy’s Single, shortened to simply Dave’s in Operated Restaurant Margin 2016), a square-pattied burger made with fresh ground beef rather than round frozen . Wendy’s uses square 19.1% hamburger patties – which hang over the edge of a circular bun – as its signature item. 2018 Annual Dividend (Per Share) $0.085 Dividend Yield (At 2/28/18) 2.1% Market Cap (As of 04/11/18) $4.04 Billion S&P Credit Rating B Stock Symbol Nasdaq: WEN

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Location Overview

St. Petersburg

95

Fort Pierce Sarasota Subject Site Port St. Lucie

1

95

West Fort Myers Palm Beach

Distance To: Port St. Lucie 10 miles Fort Pierce 19 miles 75 Fort West Palm Beach 40 miles Lauderdale Fort Lauderdale 82 miles Miami 108 miles

Miami

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726 SW Federal Hwy | Stuart, FL 34994

Stuart Middle School

1

Subject Site

Federal Hwy

SE Dixie Hwy 49,000 VPD

1 16,000 VPD

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726 SW Federal Hwy | Stuart, FL 34994

SW Pine Ave

Federal Hwy 49,000 VPD Subject Site

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Demographics

Radius 1 Mile 3 Miles 5 Miles Population 2017 Population 4,292 46,342 94,099 2022 Population 4,442 48,602 98,663 2010-2017 Annual Rate 0.64% 0.80% 0.93% 2017-2022 Annual Rate 0.69% 0.96% 0.95% 2017 Male Population 48.0% 48.2% 48.7% 2017 Female Population 52.0% 51.8% 51.3% 2017 Median Age 54.8 52.0 51.4 Households 2017 Total Households 2,203 21,495 41,804 2022 Total Households 2,274 22,486 43,727 2010-2017 Annual Rate 0.51% 0.72% 0.83% 2017-2022 Annual Rate 0.64% 0.91% 0.90% 2017 Average Household Size 1.88 2.10 2.21 Median Household Income 2017 Median Household Income $37,639 $50,308 $54,624 2022 Median Household Income $42,049 $56,388 $62,376 2017-2022 Annual Rate 2.24% 2.31% 2.69% Average Household Income 2017 Average Household Income $58,708 $78,449 $85,835 2022 Average Household Income $67,916 $88,673 $96,809 2017-2022 Annual Rate 2.96% 2.48% 2.44% Per Capita Income 2017 Per Capita Income $30,920 $36,865 $38,557 2022 Per Capita Income $35,419 $41,369 $43,272 2017-2022 Annual Rate 2.75% 2.33% 2.33%

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Demographics | 5 Mile Radius

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Market Overview

Stuart, FL Stuart is a city in and the seat of Martin County, Florida, United States. Located on Florida’s Treasure Coast, Stuart is the largest of four incorporated municipalities in Martin County. The small town of about 19,000 where famous folks such as Greg Norman and Celine Dion live. But it’s the abundant shoreline and natural beauty that keeps generations of families—and new residents from various corners of the globe—calling Stuart home. Stuart is frequently cited as one of the best small towns to visit in the U.S., in large part because of its proximity to the St. Lucie River and Indian River Lagoon. Known as the “Sailfish Capital of the World,” the Atlantic Coast city of Stuart is located along Florida’s renowned Treasure Coast, north of Palm Beach and south of Vero Beach. Along with fishing and other water-intensive pleasures, Stuart is famed for its historic and pedestrian-friendly downtown. The Stuart Green Market and Live Music event is held every Sunday from 9 a.m. until 1 p.m. near City Hall. And don’t miss the Stuart Heritage Museum and Road to Victory Military Museum. When it comes to real estate, housing options range from pastel-colored condos downtown to eastern waterfront mansions in the communities of Sailfish Point and Sewall’s Point, and along Ocean Boulevard. The average home costs $200,000 to $400,000, and real estate agent Sharon Fitzke says although the majority of residents are second homeowners who spend the winter here, an influx of new residents is looking to make the move full-time for the temperate climate. “Plus, we’re two hours from Miami and just five from Key West, so you can pick up and go for a day trip or an easy vacation on the weekend,” she adds.

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About Calkain

Who Are We? Calkain Companies LLC is a national commercial real estate firm that provides With the growth in staff, seasoned professionals have been attracted to Calkain’s consulting and brokerage services to both private and institutional clientele model of innovation, entrepreneurship and the fostering of long-lasting and with an expertise on triple net lease investments. We pride ourselves on being meaningful relationships. Industry experts have joined Calkain in the hopes of a world class leader by providing our clients a full array of commercial real estate implementing the skills they have honed in complementary aspects of real estate investment brokerage and asset management solutions, including advisory, investment. research, estate planning and wealth management. Through a tremendous endeavor, tireless hours have been committed to We have built solid relationships throughout our decades of experience and continually prove that Calkain is America’s Net Lease Company®. Its countless innovation, implementing long-term allocation within the context of each client’s accolades received from the world’s leading business publications, including particular risk tolerance and identifying how best to acquire and dispose of income Forbes™, Fortune™ and the New York Times™ have confirmed that Calkain is a producing properties for each entities’ specific set of investment criterion. At true leader in triple net lease investing services. Calkain, our foresight and past performance are leading the net lease investment industry. Client Testimonial Our History Like most success stories, Calkain was formulated from humble beginnings. “ USRA has worked with Calkain on numerous occasions. They have always been Jonathan W. Hipp, President and CEO, took the initiative to build upon his meticulous in their work ethic, providing superior service and extremely prompt decades of experience and performance and left a large international brokerage attention to our needs. I highly recommend them. firm to become an independent and innovative leader within the triple net lease - Jack Genende, Partner | U.S. Realty Advisors, LLC. (USRA) investment community. Armed with a sole employee and a single office, the firm has grown exponentially since its infancy in 2005.

$11.5 Billion $350 Million in Closed Transactions in Active Listings

PATRICK NUTT MANAGING PARTNER (954) 302-7365 [email protected] CALKAIN.COMCALKAIN.COM

10 Contact Us

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DISCLAIMER: The information contained in this document is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Calkain and its subsidiaries, and should not be made available to any other person or entity without the written consent of Calkain. This document has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property(s). The information contained herein is not a substitute for a thorough due diligence investigation. Calkain and its subsidiaries have not made any investigation, and make no warranty or representation, with respect to the income or expenses for the subject property(s), the future projected financial performance of the property, the size and square footage of the property(s) and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regula- tions, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property(s). The information contained in this document has been obtained from sources we believe to be reliable; however neither Calkain and its subsidiaries nor the Seller have verified, and will not verify, any of the information contained herein, nor has Calkain and its subsidiaries or the Seller conducted any investigation regarding these matters and make 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.