S. BROAD Philadelphia, 2037 STREET PA 19148 WENDY’S SALE LEASEBACK

Presented by: PETER BLOCK JOSEPH AUSTIN MARSHALL BURKE CHRISTIAN PERA SETH GILFORD Executive Vice President Vice President Senior Director Associate Associate [email protected] [email protected] [email protected] [email protected] [email protected] +1 847 384 2840 TABLE OF CONTENTS

> EXECUTIVE SUMMARY Executive Summary Investment Highlights

> PROPERTY INFORMATION Property Description Property Aerial Retail Map Tenant Overview

> LOCATION OVERVIEW Location Overview Area Map Demographics

> DISCLAIMER PRESENTED BY: PETER BLOCK Executive Vice President +1 847 384 2840 [email protected] > EXECUTIVE SUMMARY

Offering Memorandum EXECUTIVE SUMMARY Colliers international is pleased to present for sale a single tenant, net leased, urban Philadelphia Wendy’s restaurant located at 2037 South Broad Street. This site is a top performing location situated in a very dense urban market. It is located just south of City Center and Rittenhouse Square. The tenant currently operates under a NNN lease. The lease contains four (4) renewal OFFERING SUMMARY options and features 10% rent increases every five years. This is a true NNN lease structure with zero landlord responsibilities. This investment opportunity is being offered ASKING PRICE: $2,181,818 for sale at $2,181,818, a net operating income of $120,000 and a corresponding cap rate of 5.50%. NOI: $120,000 CAP RATE: 5.50% SIZE: ± 3,871 SF LEASE EXPIRATION: July, 2026 ESCALATIONS: 10% every 5 years including options OPTIONS: Three, 5-year and One, 4-year 11 month

Wendy’s Offering Memorandum | Philadelphia, PA COLLIERS INTERNATIONAL 4 INVESTMENT HIGHLIGHTS

DENSE URBAN IN-FILL DEMOGRAPHICS

>> Philadelphia MSA 1 mile 3 miles 5 miles >> Great Demographics Population 107,221 334,541 775,321

>> Hard corner of Broad & Snyder Average Household $70,981 $91,818 $72,954 Income >> Across from Walgreens and Adjacent to McDonalds

>> ¼ block from public high school

1031 EXCHANGE OPPORTUNITY

>> Huge operator

>> Irreplaceable Location

>> Corporate Signature

>> Brand new store prototype

Wendy’s Offering Memorandum | Philadelphia, PA COLLIERS INTERNATIONAL 5 > PROPERTY INFORMATION

Offering Memorandum PROPERTY DESCRIPTION

PROPERTY ADDRESS LEASE EXPIRATION 2037 South Broad Street, 7.8 Years estimated Philadelphia, PA 19148 July, 2026

OFFERING PRICE OPTIONS $2,181,818 Four, five (5) year

NOI ESCALATIONS $120,000 10% every five (5) years including options CAP RATE 5.50% BUILDING SIZE 3,871 SF LEASE TYPE NNN – No Landlord Responsibilities

Wendy’s Offering Memorandum | Philadelphia, PA COLLIERS INTERNATIONAL 7 LOCATION MAPS This Wendy’s is located on a hard corner of a signalled intersection. It is accross the street from South Philadelphia High School and Broad Street Subway stop.

Snyder Ave

S Broad St

Wendy’s Offering Memorandum | Philadelphia, PA COLLIERS INTERNATIONAL 8 TENANT OVERVIEW

Founded in 1969, The Wendy’s Company is one of the most popular fast food chains in the world. Founded by Dave Thomas on November 15, 1969 in Columbus, OH, Wendy’s in 2017 has over 6,500 locations, staffs over 37,000 employees and reports $1.2 billion in net sales. Only 330 Wendy’s restaurants are operated by The Wendy’s Company, with the remaining operated by franchisees. The Wendy’s Company sets standards for the exterior of stores, food quality, and the menu, however individual franchisees have control over hours of operation, interior décor, pricing and staff uniforms and wages. In 2008, Wendy’s merged with Triarc Companies. A publically traded company, Triarc Companies became known as The Wendy’s Company in 2011. Today, Wendy’s ranks 3rd in North American burger chains.

Wendy’s Offering Memorandum | Philadelphia, PA COLLIERS INTERNATIONAL 9 > LOCATION OVERVIEW

Offering Memorandum LOCATION OVERVIEW

PHILADELPHIA, PA

The subject property is located at Broad Street and Snyder Avenue, in transitional care hospital (Kindred Hospital), a skilled nursing center and the heart of South Philadelphia. This stretch of South Broad Street is offices for multiple medical practices and social service agencies. primarily commercial with blocks of residential row homes beginning a South Broad Street is well served by public transportation. SEPTA’s block off Broad Street to the east and west. Broad Street subway line, which runs from Center City to the stadium Walgreen’s occupies a corner position. Rite-Aid, Rainbow, Kicks USA, complexes has a station stop at Snyder Avenue. There are multiple bus Dunkin, McDonalds and Popeye’s all have storefront locations. Citizen’s lines along Broad Street, Snyder and Passyunk Avenues as well as the Bank and Trumark Financial have branches. The balance of retail are numbered street. Center City attractions, the sports stadiums and the smaller service retailers, food stores and restaurants in storefront loca- Philadelphia International Airport are all just a short trip away. tions. Broad and Snyder is the northern boundary of the Lower Moyamensing South Philadelphia High School occupies a full city block just south of the or “LoMo” neighborhood. Like most other Center City-adjacent neighbor- subject property. The grades 9-12 public school has 564 students and 62 hoods, LoMo is experiencing an increase in infill residential development, teachers and staff. particularly the conversion of older commercial and industrial properties to multi-family. Notably, the former South Philadelphia Brush facility, a Also located at 1930 S. Broad Street is the Constitution Health Plaza. depilated multi-story industrial property is being renovated into 151-unit This multi-purpose, 404,847-square-foot medical complex is home to a residential complex called the Artisan Lofts.

Wendy’s Offering Memorandum | Philadelphia, PA COLLIERS INTERNATIONAL 11 POP FACTS: DEMOGRAPHIC REPORT 2019 POP FACTS: DEMOGRAPHIC REPORT 2019 2037 SOUTH BROAD STREET, PHILADELPHIA, PA 2037 SOUTH BROAD STREET, PHILADELPHIA, PA RADIUS 1 RADIUS 2 RADIUS 3 RADIUS 1 RADIUS 2 RADIUS 3 (0.0-1.0 miles) (0.0-3.0 miles) (0.0-5.0 miles) (0.0-1.0 miles) (0.0-3.0 miles) (0.0-5.0 miles) POPULATION 2019 EST. POPULATION HISPANIC OR LATINO 2000 Census 102,468 290,452 728,217 Hispanic or Latino 15,524 14.48 34,182 10.22 99,270 12.80 2010 Census 102,639 308,766 734,896 Not Hispanic or Latino 91,697 85.52 300,358 89.78 676,051 87.20

2018 Estimate 107,221 334,541 775,321 2019 TENURE OF OCCUPIED HOUSING UNITS 2023 Projection 109,499 345,197 793,213 Owner Occupied 25,992 60.02 65,085 43.32 148,064 46.61 Growth 2000 - 2010 0.17 6.30 0.92 Renter Occupied 17,314 39.98 85,160 56.68 169,623 53.39 Growth 2010 - 2018 4.46 8.35 5.50 Average Household Size 2.47 2.07 2.33 Growth 2018 - 2023 2.13 3.19 2.31

HOUSEHOLDS 2000 Census 40,507 126,515 285,546 2010 Census 41,190 136,169 295,826 2018 Estimate 43,306 150,245 317,687 2023 Projection 44,338 156,079 327,166 Growth 2000 - 2010 1.69 7.63 3.60 Growth 2010 - 2018 5.14 10.34 7.39 Growth 2018 - 2023 2.38 3.88 2.98

2019 EST. POPULATION BY SINGLE CLASSIFICATION RACE White Alone 50,796 47.38 178,089 53.23 295,200 38.08 Black or African 22,908 21.36 78,248 23.39 339,082 43.73 American Alone American Indian and 420 0.39 994 0.30 3,066 0.40 Alaska Native Alone Asian Alone 20,447 19.07 49,940 14.93 63,958 8.25 Native Hawaiian and 57 0.05 160 0.05 338 0.04 Other Pacific Islander Alone Some Other Race Alone 9,079 8.47 16,003 4.78 48,231 6.22 Two or More Races 3,513 3.28 11,106 3.32 25,446 3.28

Wendy’s Offering Memorandum | Philadelphia, PA COLLIERS INTERNATIONAL 12 POP FACTS: DEMOGRAPHIC REPORT 2019 2037 SOUTH BROAD STREET, PHILADELPHIA, PA

RADIUS 1 (0.0-1.0 miles) RADIUS 2 (0.0-5.0 miles) RADIUS 3 (0.0-10.0 miles) 2019 EST. HOUSEHOLDS BY HOUSEHOLD INCOME CY HHs, Inc < $15,000 6,063 14.00 23,898 15.91 64,272 20.23 CY HHs, Inc $15,000 - $24,999 5,035 11.63 13,537 9.01 34,885 10.98 CY HHs, Inc $25,000 - $34,999 4,409 10.18 11,793 7.85 29,385 9.25 CY HHs, Inc $35,000 - $49,999 5,908 13.64 16,485 10.97 38,879 12.24 CY HHs, Inc $50,000 - $74,999 6,913 15.96 21,943 14.61 46,754 14.72 CY HHs, Inc $75,000 - $99,999 4,885 11.28 16,065 10.69 31,620 9.95 CY HHs, Inc $100,000 - $124,999 3,593 8.30 12,111 8.06 21,859 6.88 CY HHs, Inc $125,000 - $149,999 2,358 5.45 8,823 5.87 14,376 4.53 CY HHs, Inc $150,000 - $199,999 2,245 5.18 10,588 7.05 15,798 4.97 CY HHs, Inc $200,000 - $249,999 1,032 2.38 5,723 3.81 8,121 2.56 CY HHs, Inc $250,000 - $499,999 688 1.59 6,416 4.27 8,236 2.59 CY HHs, Inc $500,000+ 178 0.41 2,863 1.91 3,501 1.10

2019 EST. AVERAGE HOUSEHOLD INCOME Total $70,981 $91,818 $72,954

2019 EST. MEDIAN HOUSEHOLD INCOME Total $50,706 $59,843 $46,426

2019 MEDIAN HH INC. BY SINGLE RACE, CLASS, OR ETHNICITY White Alone $60,591 $77,969 $71,417 Black or African American Alone $35,993 $31,592 $31,080 American Indian and Alaska Native $36,485 $34,511 $36,345 Alone Asian Alone $47,864 $53,176 $50,867 Native Hawaiian and Other Pacific $31,745 $33,730 $40,938 Islander Alone Some Other Race Alone $45,728 $36,607 $32,729 Two or More Races $41,751 $47,524 $42,687 Hispanic or Latino $48,504 $48,332 $36,749

Wendy’s Offering Memorandum | Philadelphia, PA COLLIERS INTERNATIONAL 13 CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of the property at 2037 SOUTH BROAD STREET, PHILADELPHIA, PA. It has been prepared by Colliers International. 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 Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained by Peter Block 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 or 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 from Colliers International, 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 Colliers International 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 at 2037 SOUTH BROAD STREET, PHILADELPHIA, PA 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 Colliers International 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.

Wendy’s Offering Memorandum | Philadelphia, PA COLLIERS INTERNATIONAL 14