Marketing Package Hilltop Restaurant Sale Leaseback 5645 Guide Meridian Bellingham, WA 98226

James Browder Spencer Wright Broker Broker 360-319-9168 425-941-5777 jim@ spencer@ kulshancommercial.com kulshancommercial.com

All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or 114 West Magnolia Street representation is made as to the accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other Suite 400 - 146 conditions, prior sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein. Bellingham, WA 98225 Marketing Flyer Hilltop Restaurant Sale Leaseback 5645 Guide Meridian Bellingham, WA 98226

$1,595,000 Offered at a 7.02% Cap rate Absolute Net Operating Income - $112,000/year Strong investment with solid local credit tenant 10-year lease in place Four 5-year options 2% Annual rent increases Market rate adjustments every 7 years Popular Hilltop Restaurant opened in 1959 New building constructed in 2004 Added catering kitchen in 2006 High-traffic location - 18,000 cars/day, including heavy Canadian traffic Hilltop Restaurant Loyal customer base Experienced, local operator

James Browder Spencer Wright Broker Broker 360-319-9168 425-941-5777 [email protected] [email protected]

CBA: 549627 MLS: 733690

All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or 114 West Magnolia Street representation is made as to the accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other Suite 400 - 146 conditions, prior sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein. Bellingham, WA 98225 Hilltop Restaurant Marketing Package Executive Summary 5645 Guide Meridian | Bellingham, WA 98226

Hilltop Restaurant Executive Summary Kulshan Commercial Investment Real Estate is pleased to present the Hilltop Restaurant in Bellingham, WA for Sale and Leaseback by the restaurant owner/operator, Tom Kilpatrick.

Located in the center of the populated part of Whatcom County, the restaurant trade area includes Bellingham, Ferndale, Lynden, within about a 7 mile drive.

The Hilltop Restaurant has been operated continuously since 1959 and has a loyal patron base; it has been operated by Tom Kilpatrick since 2001 including the construction of a completely new restaurant building in 2004. The building and grounds are very attractive, with good visibility, parking, and appeal. The property also includes a separate catering kitchen for related off-premises catering businesses which also support the restaurant operator income.

Mr. Kilpatrick intends to sell the building and lease it back as an operator under terms of new lease to be finalized with the successful buyer. The Investor’s and Seller’s attorneys will interface to create a mutually agreeable document with business terms that reflect the returns the Investor requires with reasonable lease terms the operator can support with the restaurant operation.

Restaurant sales volumes are more than sufficient to support an initial base rent (on an absolute net rent basis) of $112, 000, with annual increases of 2%, and market rate adjustments every 7 years, with an initial lease term of 10 years. Four five-year options are also planned, providing great continuity and market rents for the new Investor/Owner.

This marketing package answers many questions of an Investor prospect; additional information is available in a Due Diligence Vault and through the Owner, and can be made available when appropriate to qualified Investors.

Investors and brokers are asked to schedule full property tours through the Listing Brokers, although the restaurant is open for business seven days a week. Please do not talk to the staff about the potential sale of the property or anything other than normal patron business.

Due to the attractive return offered to the Investor through the initial rent level and the asking price, there is high demand for the property and time is of the essence. Please contact the Listing Broker or your representative to create a Purchase and Sale Agreement, subject to acceptable Leaseback terms. The Seller will respond to all offers.

All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or 114 West Magnolia Street representation is made as to the accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other Suite 400 - 146 conditions, prior sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein. Bellingham, WA 98225 Hilltop Restaurant Marketing Package Lease Information 5645 Guide Meridian | Bellingham, WA 98226

Lease Summary Property Address: 5645 Guide Meridian Operating Expenses: Absolute Net Lease - Tenant Bellingham, WA 98226 responsible for all costs, expenses and charges of every nature, relat- Commencement Date: May 1, 2015 ing to Lease Premises.

Expiration Date: April 30, 2025 Tenant pays all utilities and other services. Initial Lease Term: 10 years (120 months) Maintenance and Repair: Tenant pays all costs of mainte- Rentable Square Feet: 4,329 square feet nance and repair.

Parcel Description: APN 3902255104600000 Security Deposit: $9,333.33 39,200 square feet Perpetual easement provides south Last Month’s Rent: $9,333.33 entrance, 15,600 SF Landlord’s Notice Address: To be determined Selling Price: $1,595,000 Tenant Notice Address: The Guide Hilltop Restaurant, LLC Cap Rate: 7.02% 5645 Guide Meridian Bellingham, WA 98226 Rent as expected closing: 1 May 1, 2015 $112,000.00 c/o Tom Kilpatrick 2 May 1, 2016 $114,240.00 3 May 1, 2017 $116,524.80 4 May 1, 2018 $118,855.30 5 May 1, 2019 $121,232.40 6 May 1, 2020 $123,657.05 7 May 1, 2021 $126,130.19 8 May 1, 2022 New Market Rent 9 May 1, 2023 + 2% 10 May 1, 2024 + 2% May 1, 2025 + 2% First Option ......

All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or 114 West Magnolia Street representation is made as to the accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other Suite 400 - 146 conditions, prior sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein. Bellingham, WA 98225 Hilltop Restaurant Marketing Package Site Photos 5645 Guide Meridian | Bellingham, WA 98226

All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or 114 West Magnolia Street representation is made as to the accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other Suite 400 - 146 conditions, prior sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein. Bellingham, WA 98225 Hilltop Restaurant Marketing Package Site Photos 5645 Guide Meridian | Bellingham, WA 98226

All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or 114 West Magnolia Street representation is made as to the accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other Suite 400 - 146 conditions, prior sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein. Bellingham, WA 98225 Hilltop Restaurant Marketing Package Site Photos 5645 Guide Meridian | Bellingham, WA 98226

All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or 114 West Magnolia Street representation is made as to the accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other Suite 400 - 146 conditions, prior sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein. Bellingham, WA 98225 Hilltop Restaurant Marketing Package Maps 5645 Guide Meridian | Bellingham, WA 98226 Pacific Northwest

Hilltop Restaurant

All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or 114 West Magnolia Street representation is made as to the accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other Suite 400 - 146 conditions, prior sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein. Bellingham, WA 98225 Hilltop Restaurant Marketing Package Maps 5645 Guide Meridian | Bellingham, WA 98226 Regional

Hilltop Restaurant

All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or 114 West Magnolia Street representation is made as to the accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other Suite 400 - 146 conditions, prior sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein. Bellingham, WA 98225 Hilltop Restaurant Marketing Package Maps 5645 Guide Meridian | Bellingham, WA 98226 Aerial

All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or 114 West Magnolia Street representation is made as to the accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other Suite 400 - 146 conditions, prior sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein. Bellingham, WA 98225 Hilltop Restaurant Marketing Package Maps 5645 Guide Meridian | Bellingham, WA 98226 Aerial

All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or 114 West Magnolia Street representation is made as to the accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other Suite 400 - 146 conditions, prior sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein. Bellingham, WA 98225 Hilltop Restaurant Marketing Package Maps 5645 Guide Meridian | Bellingham, WA 98226 Surrounding Retail

Hilltop Restaurant

All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or 114 West Magnolia Street representation is made as to the accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other Suite 400 - 146 conditions, prior sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein. Bellingham, WA 98225 Hilltop Restaurant Marketing Package Maps 5645 Guide Meridian | Bellingham, WA 98226 Zoning

Zoning

RGC: Rural General Commercial

R5A: Rural 1 Unit/ 5 Acres

RIM: Rural Industrial Manufacturing

Full zoning map for this area as well as specific zoning code available in Due Diligence Vault.

Due to rural location, limited The Hilltop Restaurant development permitted in this area. More information on Limit- ed Areas of More Intensive Rural Development (LAMIRDs) can be found here:

http://www.co.what- com.wa.us/pds/plan/lr/proj- ects/lamirds/lamirds.jsp

All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or 114 West Magnolia Street representation is made as to the accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other Suite 400 - 146 conditions, prior sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein. Bellingham, WA 98225 Hilltop Restaurant Marketing Package Site Plan 5645 Guide Meridian | Bellingham, WA 98226

Proposed Addition Completed 2006

All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or 114 West Magnolia Street representation is made as to the accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other Suite 400 - 146 conditions, prior sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein. Bellingham, WA 98225 Hilltop Restaurant Marketing Package Floor Plan 5645 Guide Meridian | Bellingham, WA 98226

Proposed Addition Completed 2006 Not Shown.

All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or 114 West Magnolia Street representation is made as to the accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other Suite 400 - 146 conditions, prior sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein. Bellingham, WA 98225 

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  Sketch on file with 

 Whatcom County 

 Assessor    

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    

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All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or 114 West Magnolia Street representation is made as to the accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other Suite 400 - 146 conditions, prior sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein. Bellingham, WA 98225

 Hilltop Restaurant Marketing Package Addendum 5645 Guide Meridian | Bellingham, WA 98226 Links Links The Hilltop Restaurant http://hilltopcooking.com/

Whatcom County http://www.co.whatcom.wa.us/ County Assessor http://www.whatcomcounty.us/assessor/index.jsp Real Property Search http://property.whatcomcounty.us/ Planning & Development http://www.whatcomcounty.us/pds/index.jsp Permits http://www.whatcomcounty.us/pds/permit/index.jsp Zoning http://www.co.whatcom.wa.us/pds/plan/current/zoning.jsp LAMIRDs http://www.co.whatcom.wa.us/pds/plan/lr/projects/lamirds/lamirds.jsp

Bellingham Colleges and Universities Western University http://www.wwu.edu Whatcom Community College http://www.whatcom.ctc.edu/ Bellingham Technical College http://www.btc.ctc.edu

Washington State Planning Goals http://apps.leg.wa.gov/rcw/default.aspx?cite=36.70a.020

Bellingham/Whatcom Chamber http://www.bellingham.com

Port of Bellingham https://www.portofbellingham.com/ Waterfront Redevelopment https://www.portofbellingham.com/index.aspx?NID=524

Surrounding Communities Bellingham http://www.bellingham.org/ Ferndale http://www.cityofferndale.org/ Lynden http://www.lyndenwa.org/ Fairhaven http://fairhaven.com/

Local News Media www.bellinghamherald.com The Western Front www.westernfrontonline.net Bellingham Business Journal bbjtoday.com

All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or 114 West Magnolia Street representation is made as to the accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other Suite 400 - 146 conditions, prior sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein. Bellingham, WA 98225 Hilltop Restaurant Marketing Package Traffic Counts 5645 Guide Meridian | Bellingham, WA 98226

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