IHOP 1446 Unser Blvd Rio Rancho NM

IHOP OFFERING MEMORANDUM 1446 Unser Blvd SE | RIo Rancho, NM

™ ™ ™ contents 04 EXECUTIVE SUMMARY

06 financial OVERVIEW

08 tenant overview

12 area OVERVIEW

exclusively listed by

Gary chou

FVP & Senior Director

[email protected] DIR (310) 919-5827 MOB (714) 928-8016 LIC # 01911222

kyle matthews BROKER OF RECORD LIC # 19601

™ executive summary investment highlights

Stabilized Investment with Growing Cash Flow

• 14+ years remaining on the initial lease term

• Two (2), 5-year options to extend

• Zero landlord responsibilities – tenant pays for all expenses

• 10% rental increases every 5 years

• 100% leased to a franchisee for a national tenant, IHOP restaurant, a subsidiary of DineEquity, Inc. which is the largest casual-dining restaurant chain in the world

• Personal Guarantee from Seasoned Franchisee – As IHOP’s 2006 “Franchisee of the Year,” the 8+ unit operator, has over 20 years of experience operating IHOPs and comparable restaurant concepts

STRONG MIX OF SURROUNDING NATIONAL TENANTS

• Nearby national tenants include Walmart Supercenter, Dion’s Pizza, Starbucks, Five Guys, McDonald’s, Chili’s Grill & Bar, Del Taco, Discount Tire, Chick-fil-A, Burger King, Sonic, Walgreens, Firestone Complete Auto Care, O’Reilly Auto Parts, and more

• Located near Premiere Cinema, the second largest movie theater in Rio Rancho excellent real estate fundamentals

• Over 19,000 ADT on Unser Blvd SE

• Over 220,000 people living in a 5-mile radius

• Average household income in a 1-mile radius exceeds $91,000

• Average household income in a 3-mile radius exceeds $78,000

• Average household income in a 5-mile radius exceeds $80,000

4 | Offering Memorandum IHOP, RIo Rancho, NM | 5 financial overview IHOP 1446 Unser Blvd SE RIo Rancho, NM 87124 List Price ��$3,948,000 CAP Rate - Current ��7.25% Gross Leasable Area ��± 4,544 SF Lot Size ��± 1.00 Acres Year Built ��2011

Annualized Operating Data Monthly Rent Annual Rent Rent/SF Cap Rate Current - 7/30/2021 $23,849.75 $286,197 $62.98 7.25% 8/1/2021 - 7/30/2026 $26,234.73 $314,817 $69.28 7.97% 8/1/2026 - 7/30/2031 $28,858.20 $346,298 $76.21 8.77% 8/1/2031 - 7/30/2036 $31,744.02 $380,928 $83.83 9.65% O1: 8/1/2036 - 7/30/2041 $34,918.42 $419,021 $92.21 10.61% O2: 8/1/2041 - 7/30/2036 $38,410.26 $460,923 $101.44 11.67%

Tenant Summary

Tenant Trade Name IHOP Type of Ownership Fee Simple Lease Guarantor Adi Unser, Inc. Lease Type NNN Original Lease Term 20 Years Lease Commencement Date 7/18/2011 Rent Commencement Date 7/18/2011 Lease Expiration Date 7/30/2031 Term Remaining on Lease ± 14 Years Increases 10% every 5 Years Options Two (2). 5-Year

IHOP, RIo Rancho, NM | 7 tenant overview 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 OUTREACH 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. 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.

IHOP, RIo Rancho, NM | 9 parcel map the offering

Property Name IHOP 1446 Unser Blvd SE Property Address RIo Rancho, NM 87124 Assessor’s Parcel Number R155512

Oceanside Blvd ± 31,792 Site Description Number of Stories One Year Built 2011 Gross Leasable Area (GLA) ± 4,544 SF Lot Size ± 1.00 Acres (43,560 SF)

Type of Ownership NNN 40,116 ± Blvd College Parking 55 Surface Spaces Parking Ratio 12 : 1,000 SF Unser Blvd ± 19,000 ADT

10 | Offering Memorandum tenant map

IHOP, RIo Rancho, NM | 11 area overview

RIo Rancho, NM RIo Rancho is centrally located in the heart of New Mexico, just North of Albuquerque. Rio Rancho is the largest city and economic hub of Sandoval County in New Mexico. It is the third-largest and also one of the fastest expanding cities in New Mexico. Rio rancho is part of the Albuquerque Metropolitan Statistical Area.

Rio Rancho offers a cultural diversity within its population of 100,000. Every major attraction in the Land of Enchantment is accessible from Rio Rancho within a day’s scenic drive, including Indian Pueblos, Santa Fe, Taos, and so much more. Rio Rancho’s high-desert climate provides breathtaking vistas and plenty of room for high-altitude outdoor adventures year-round. Even if you are just passing through, Rio Rancho offers a variety of affordable, modern and convenient lodging, dining and shopping opportunities.

Quality of Life The community has been recognized by Family Circle Magazine as one of the 10 best towns for families in 2013. Money Magazine ranked the city as one of the 100 best places to live in America in 2005, 2006, 2010, and 2012. In April 2008, Fortune Small Business Magazine ranked Rio Rancho as the 83rd best place to live and launch a business in the United States. In November of 2008, BusinessWeek Magazine named Rio Rancho as New Mexico’s best place to raise kids in 2009. Rio Rancho received this same honor from the magazine for 2010.

12 | Offering Memorandum New Developments RIo RAncho demographics

• City Center development POPULATION 1 Mile 3 Mile 5 Mile 2022 Projection 11,502 85,653 222,515 • Loma Colorado development 2017 Estimate 10,811 82,055 211,986

• Mariposa, a 6,500 acre development 2010 Census 9,477 75,942 192,850 Growth 2017 - 2022 9.33% 4.99% 4.61% • A new University of New Mexico West Campus Growth 2010 - 2017 23.61% 9.90% 9.14%

• Hewlett Packard and Expansion HOUSEHOLDS 1 Mile 3 Mile 5 Mile • Central New Mexico Community College 2022 Projection 3,246 32,439 57,568 2017 Estimate 2,967 30,865 54,925 Economy 2010 Census 2,390 28,091 50,309 The Intel Corporation is by far the largest employer in Rio Rancho. The Growth 2017 - 2022 9.41% 5.10% 4.81% services, retail, and government sectors are also major component of the Growth 2010 - 2017 24.14% 9.88% 9.18% local economy. Rio Ranch is the site of Intel’s Intel Fab 11X, one of the largest INCOME 1 Mile 3 Mile 5 Mile semiconductor fabrication plants in the world. The plant has since closed, 2017 Est. Average but is being converted into a test facility. Several call centers call Rio Rancho $91,012 $78,847 $80,337 Household Income home. Walmart opened in early summer of 2006 in Rio Rancho, thus sparking several new commercial retailers to locate nearby.

IHOP, RIo Rancho, NM | 13 Top employers

# Employer Albuquerque Metropolitan Statistical Area 1 Kirkland Air Force Base Albuquerque is the most populous city in the state of New Mexico. The high-altitude city serves as the county seat of Bernalillo County, and it is situated in the central part of the state, straddling the Rio Grande. The city has a population 2 University of New Mexico of more than 550,000 people. Albuquerque is rich in culture and heritage. There is plenty to do in Albuquerque from 3 Sandia National Laboratories shopping for authentic Native American jewelry, hot air ballooning, exploring history museums and enjoying the local events and festivals. 4 Albuquerque Public Schools economy 5 Presbyterian Health Services

Albuquerque is the most populous city in the state of New Mexico. The high-altitude city serves as the county seat of 6 City of Albuquerque Bernalillo County, and it is situated in the central part of the state, straddling the Rio Grande. The city has a population of more than 550,000 people. Albuquerque is rich in culture and heritage. There is plenty to do in Albuquerque from 7 Lovelace-Sandia Health System shopping for authentic Native American jewelry, hot air ballooning, exploring history museums and enjoying the local events and festivals. 8 Intel Corporation

9 State of New Mexico

10 Wal-Mart Stores, Inc. 14 | Offering Memorandum International Balloon Fiesta

Albuquerque is also home of the International Balloon Fiesta, the world’s largest such gathering of balloons from around the world. The event takes place during the first week of October. The Balloon Fiesta is a nine-day event, and has over 500 balloons each year. The convention has also become a major showcase of New Mexican culture and history and features numerous cultural exhibitions. The fiesta is one of Albuquerque’s largest tourist attractions and constitutes a major source of income for the city and local businesses. Typically, tourists and fiesta visitors take thousands of pictures of the balloons, so it is no surprise that for several years the fiesta was sponsored by Kodak and was given the title, the Kodak Albuquerque International Balloon Fiesta, though that title was usually only used in print ads and on official memorabilia.

Arts & Culture

One of the major art events in the state is the summertime New Mexico Arts and Crafts Fair, a non-profit show exclusively for New Mexico artists and held annually in Albuquerque since 1961. Albuquerque is home to over 300 other visual arts, music, dance, literary, film, ethnic, and craft organizations, museums, festivals and associations. Some of the local museums, galleries, shops and other points of interest include the Albuquerque Biological Park, Albuquerque Museum, Museum of Natural History and Science, and Old Town Albuquerque. Albuquerque’s live music/performance venues including; Isleta Amphitheater, Tingley Coliseum, Sunshine Theater and the KiMo Theater. The local cuisine prominently features green chile, which is widely available in restaurants, including national fast-food chains. The restaurant scene of Albuquerque is quite prominent throughout the city, and local restaurants receive statewide attention, alongside several of them becoming chains throughout the state. The Sandia Peak Tramway, located adjacent to Albuquerque, is the world’s second-longest passenger aerial tramway. It also has the world’s third-longest single span. It stretches from the Northeast edge of the city to the crestline of the Sandia Mountains. Elevation at the top of the tramway is roughly 10,300 ft above sea level. IHOP, RIo Rancho, NM | 15 CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offering Memorandum contains select information pertaining to the business and affairs of IHOP located at 1446 Unser Blvd SE, RIo Rancho, NM 87124 (“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. exclusively listed by Gary chou FVP & Senior Director kyle matthews BROKER OF RECORD [email protected] LIC # 19601 DIR (310) 919-5827 MOB (714) 928-8016 LIC # 01911222

IHOP ™ 1446 Unser Blvd SE | RIo Rancho, NM