Arby's Restaurant

NET LEASE INVESTMENT OFFERING

ARBY’S RESTAURANT (Corporate) 3710 Easton Nazareth Highway Easton, PA 18045 TABLE OF CONTENTS

TABLE OF CONTENTS

I. Executive Profile II. Location Overview III. Market & Tenant Overview Executive Summary Photographs Demographic Report Investment Highlights Aerial Market Overview Property Overview Site Plans Tenant Overview Map

NET LEASE INVESTMENT OFFERING DISCLAIMER STATEMENT

DISCLAIMER The information contained in the following Offering Memorandum is proprietary and strictly confidential. STATEMENT: It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group.

This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. The Boulder Group has not made any investigation, and makes no warranty or representation.

The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes 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.

NET LEASE INVESTMENT OFFERING EXECUTIVE SUMMARY

EXECUTIVE The Boulder Group is pleased to exclusively market for sale a single tenant net leased Arby’s Restaurant property SUMMARY: located in Easton, Pennsylvania. The property is strategically located along Easton Nazareth Highway in a dominant retail corridor. The Arby’s features a drive-thru and has easy access to the traffic along Easton Nazareth Highway. The corporate guaranteed triple net lease has ten years remaining and features rental escalations in the primary term and in the four renewal option periods.

The 2,750 square foot building is well located within the dominant retail destination in Easton. The Arby’s is located along Easton Nazareth Highway, the areas primary east-west thoroughfare, which experiences traffic counts exceeding 17,000 vehicles per day. The property is also less than one-quarter mile east of Pennsylvania Route 33 with direct on and off access to the approximate 55,000 vehicles per day. The property is located within an affluent area with average household incomes within a one-mile radius in excess of $104,000 annually. There are over 121,500 people living within a five mile radius of the property.

The Arby’s Restaurant is surrounded by a number of major retail developments. Northampton Crossings, a 622,000 square foot development anchored by a Walmart Supercenter, also features Sam’s Club, Sears, Kohl’s, Hobby Lobby and a Regal Cinema. Directly across the street is Lower Nazareth Commons, a 292,000 square foot development that features Target, Five Below, Petco and Starbucks. Other notable retailers in the immediate vicinity along Easton Nazareth Highway include Wegmans, PNC Bank, AT&T Wireless and a number of restaurants. In addition, a Walgreens distribution warehouse and B&G Foods distribution warehouse are both located in the immediate area. With convenient interstate access and a large variety of strong retailers, this corridor has the advantage of drawing consumers from throughout the area.

The Arby’s Restaurant recently executed a new ten year lease expiring in April 2027. The lease features 3% rental escalations in year five and nine of the primary term and in the four 5-year renewal option periods. Arby’s is a leading international quick-service restaurant company that specializes in deli-style sandwiches. Arby’s is the second-largest quick-service fast-food sandwich restaurant chain in the U.S. in terms of units and third-largest in terms of revenue.

NET LEASE INVESTMENT OFFERING INVESTMENT HIGHLIGHTS

INVESTMENT • Long term lease HIGHLIGHTS: • Triple net lease

• Corporate guarantee

• Drive-thru location

• Rental escalations in primary terms and renewal option periods

• Positioned in a retail corridor with easy access on areas primary east-west thoroughfare

• Over 121,500 people living within a five mile radius of the property

• Benefits from its position within a dominant retail destination that features Walmart, Target, Wegmans, Regal Cinema and many others

NET LEASE INVESTMENT OFFERING PROPERTY OVERVIEW

PROPERTY Price: $1,791,304 OVERVIEW: Cap Rate: 5.75% Rent Schedule: NOI Escalation Date $103,000 $106,090 5/1/2021 $109,273 5/1/2025 $109,273 5/1/2027 (Option 1) $112,551 5/1/2029 $112,551 5/1/2032 (Option 2) $115,927 5/1/2033 $119,405 5/1/2037 (Option 3) $122,987 5/1/2041 $122,987 5/1/2042 (Option 4) $126,677 5/1/2045 Renewal Options: Four 5-Year* Lease/Rent Commencement: May 1, 2017 Lease Expiration Date: April 30, 2027 Lease Term: 10 Years Guarantor: Arby’s Restaurant Group, Inc. Year Built/Remodeled: 1995/2004 Lease Type: NNN Rentable Square Feet: 2,750 SF Lot Size: 1 Acre

* Fourth Renewal Option is 47 months.

NET LEASE INVESTMENT OFFERING PHOTOGRAPHS

NET LEASE INVESTMENT OFFERING AERIAL

Y ( 1 7 , 0 5 8 V P D ) H I G H W A A Z A R E T H E A S T O N - N

P A - 3 3 ( 5 5 , 0 1 9 V P D )

NET LEASE INVESTMENT OFFERING SITE PLAN

DRIVE-THRU

NET LEASE INVESTMENT OFFERING MAP

Lake Michigan

NET LEASE INVESTMENT OFFERING DEMOGRAPHIC REPORT

DEMOGRAPHIC Population 1-Mile 3-Mile 5-Mile REPORT: Total Population 1,409 35,105 121,578 Total Households 586 13,263 44,490

Income 1-Mile 3-Mile 5-Mile

Average Household Income $104,110 $91,775 $84,004

NET LEASE INVESTMENT OFFERING MARKET OVERVIEW

MARKET Easton, Pennsylvania OVERVIEW: Easton is a city and the county seat of Northampton County, Pennsylvania. The city has a population of more than 27,000 people. Easton is located at the confluence of the Delaware River and the Lehigh River, roughly 55 miles north of Philadelphia and 70 miles west of New York City.

Easton is the easternmost city in the Lehigh Valley, a region of 731 square miles that is home to more than 800,000 people. Together with Allentown and Bethlehem, the Valley embraces the Allentown-Bethlehem-Easton metropolitan area, including Lehigh, Northampton, and Carbon counties within Pennsylvania, and Warren County in the adjacent state of New Jersey. This metropolitan area comprises Pennsylvania’s third-largest metropolitan area and the state’s largest and most populous contribution to the greater New York City metropolitan area.

The greater Easton area consists of the city, three townships (Forks, Palmer, and Williams), and three boroughs (Glendon, West Easton, and Wilson). Centre Square, the town square of the city’s Downtown neighborhood, is home to the Soldiers’ & Sailors’ Monument, a memorial for Easton area veterans killed during the American Civil War. The Peace Candle, a candle-like structure, is assembled and disassembled every year atop the Civil War monument for the Christmas season.

The Norfolk Southern Railway’s Lehigh Line (formerly the main line of the Lehigh Valley Railroad), runs through Easton on its way to Bethlehem and Allentown heading west and to Phillipsburg, New Jersey just across the Delaware River. Easton is served by I-78, US 22, PA 33, PA 248 and PA 611. Trans-Bridge Lines provides regular bus service to New York City. Air transport to and from Easton is available through Lehigh Valley International Airport, which is located approximately 15 miles west of the city, in Hanover Township. Bus transportation is provided by LANTA Metro bus services.

Easton’s Two Rivers Landing is the home of two interactive children’s museums, the National Canal Museum, which focuses on the importance of canals in the region, and the Crayola Factory, which is owned by Crayola LLC, a major toy manufacturer based in nearby Forks Township. The city was also once the home of Dixie Cup Corporation, the manufacturer of Dixie Cups and other consumer products. Majestic Athletic, current provider of uniforms for Major League Baseball, is based in Easton.

www.easton-pa.com

NET LEASE INVESTMENT OFFERING TENANT OVERVIEW

TENANT Arby’s Restaurant OVERVIEW: Arby’s Restaurant Group, Inc. is a leading international quick-service restaurant company operating in the United States. Arby’s is the second-largest quick-service fast-food sandwich restaurant chain in the U.S. in terms of units and third in terms of revenue, franchising nearly 3,400 restaurants. Arby’s was the first nationally franchised, coast-to-coast sandwich chain and has been serving fresh, craveable meals since it opened its doors in 1964.

Roark Capital Group acquired Arby’s in July 2011 and owns 81.5% of the company, with The Wendy’s Company owning the other 18.5%. In addition to its classic Roast Beef and Beef ‘n Cheddar sandwiches, Arby’s products also include deli-style Market Fresh line of sandwiches, Curly Fries and Jamocha Shakes. Its headquarters are in Sandy Springs, Georgia.

Websites: www.arbys.com Founded: 1964 Number of Locations: 3,400 ± Number of Employ 74,000 ± Headquarters: Sandy Springs, Georgia Owners: Roark Capital Group (81.5%) The Wendy’s Company (18.5%)

NET LEASE INVESTMENT OFFERING Randy Blankstein President 847.562.0003 [email protected]

Jimmy Goodman Partner 847.562.8500 [email protected]

666 Dundee Road, Suite 1801 Northbrook, IL 60062