1011 Park Ave Wendy’s Single Tenant NNN Meadville, PA 1 OFFERING MEMORANDUM | 1011 PARK AVENUE 1011 Park Ave EXCLUSIVELY MARKETED BY TABLE OF CONTENTS EXECUTIVE SUMMARY KYLE GULOCK MATT KRAMER Executive Vice President, Partner Senior Associate Kidder Mathews PROPERTY OVERVIEW 310.492.8416 424.653.1803 1925 Century Park East [email protected] [email protected] Suite 2350 FINANCIAL ANALYSIS LIC #01861385 LIC #01995909 Los Angeles, CA 90067 kiddermathews.com LOCATION OVERVIEW This information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to be material, including, but not limited TENANT OVERVIEW to, statements of income and expenses. Consult your attorney, accountant, or other professional advisor. 2 OFFERING MEMORANDUM | 1011 PARK AVENUE 1011 Park Ave Executive Summary Kidder Mathews is pleased to present an Exclusive Investment Offering for a single-tenant restaurant building located at 1011 Park Avenue, Meadville, PA 16335 (“Property”). The Property is currently leased to Wendy’s Properties, LLC (“Tenant”). This opportunity consists of a Wendy’s that has 17+ years remaining on the lease term, located in a shopping center anchored by Walmart Supercenter. 1011 Park Avenue provides an investor the opportunity to acquire a 2,476 square foot building on 34,848 square feet of land in an area with strong demographics. $2,475,000 $123,699 OFFERING PRICE NET OPERATING INCOME 5.00% $42,646 CAP RATE FIVE-MILE AVG HOUSEHOLD INCOME 26,417 FIVE-MILE POPULATION 3 OFFERING MEMORANDUM | 1011 PARK AVENUE 1011 Park Ave Executive Summary PRICE NET OPERATING INCOME PARCELS LEASE TERM REMAINING $2,475,000 $123,699 Improvements: 2,476 SF 17+ years Lot Size: 34,848 SF TENANT LEASE TYPE RENT INCREASES STORE SALES Wendy’s (NASDAQ: WEN) Corporate Guarantee 10% Every 5 Years Sub 8% Rent/Sales Ratio 4 OFFERING MEMORANDUM | 1011 PARK AVENUE 01 Property Overview Amenities Map Regional Map 5 OFFERING MEMORANDUM | 1011 PARK AVENUE 1011 Park Ave Property Overview 1011 PARK AVENUE, MEADVILLE, PA 16335 BUILDING SIZE 2,476 SF LAND SIZE 32,753 SF APN 22576 OPTION TERMS Two (2) 5 year option terms RENT/SALES RATIO Sub 8% LOCATION Southeast corner of Park Avenue and South Street PROPERTY OWNERSHIP Fee simple interest (land & building), subject to a RIGHTS Lease Agreetment with two Options to Renew ACCESS Paved driveways off of both Park Avenue and South Street TENANCY Leased & occupied by Wendy’s INVESTMENT HIGHLIGHTS Corporately guaranteed lease Wendy’s has been a tenant at this location for 20+ years Strong store sales Freestanding, corner property Strong traffic counts 6 OFFERING MEMORANDUM | 1011 PARK AVENUE 1011 Park Ave Amenities Map French Creek Pkwy Water St Arch St Arch Walnut St Walnut Park Ave 1011 PARK AVE Park Ave North St North S Main St 7 OFFERING MEMORANDUM | 1011 PARK AVENUE 1011 Park Ave Regional Map MAINE VERMONT WISCONSIN NEW HAMSHIRE MICHIGAN NEW YORK 1011 PARK AVE MASSACHUSETTS CONNECTICUT RI PENNSYLVANIA NEW JERSEY ILLINOIS INDIANA OHIO MARYLAND WEST DELAWARE VIRGINIA MISSOURI KENTUCKY VIRGINIA 8 OFFERING MEMORANDUM | 1011 PARK AVENUE 02 Financial Analysis Investment Offering Summary 9 OFFERING MEMORANDUM | 1011 PARK AVENUE 1011 Park Ave Investment Offering Summary Offering Price RENT DURING BASE TERM $2,475,000 CURRENT TERM % INCREASE ANNUAL TOTAL Cap Rate 1 — $123,699 5.00% 2 — $123,699 Tenant Wendy’s 3 — $123,699 Lease Term Remaining 4 — $123,699 17+ Years 5 — $123,699 Net Operating Income 6 10% $136,069 $123,699 7 — $136,069 Rent Increases 8 — $136,069 10% increase every 5 years 9 — $136,069 Square Footage Occupied 10 — $136,069 2,476 SF 11 10% $149,676 Option Terms Tenant has two (2) options to extend the lease for five (5) year periods 12 — $149,676 13 — $149,676 14 — $149,676 15 — $149,676 16 10% $164,643 17 — $164,643 18 — $164,643 19 — $164,643 20 — $164,643 10 OFFERING MEMORANDUM | 1011 PARK AVENUE 1011 Park Ave 03 Location Overview Meadville, PA Doug Kerr from Albany, NY, United States [CC BY-SA 2.0 (https://creativecommons.org/licenses/by-sa/2.0)], via Wikimedia Commons 11 OFFERING MEMORANDUM | 1011 PARK AVENUE 1011 Park Ave Location Overview MEADVILLE, PENNSYLVANIA Meadville is a city in and the county seat of Crawford County, Pennsylvania, In the late 18th and early 19th centuries Meadville played a small part in the United States. The city is within 40 miles of Erie, Pennsylvania and within Underground Railroad helping escaping slaves to freedom. By the late 19th 90 miles of Pittsburgh, Pennsylvania. It was the first permanent settlement century, Meadville’s economy was also driven by logging, agriculture, and in northwest Pennsylvania. The population was 13,388 at the 2010 census. iron production. The Talon Corporation, headquartered in Meadville, played a The city of Meadville is the principal city of the Meadville, PA Micropolitan major role in the development of the zipper. Since the clothing industry was Statistical Area. As well as one of two cities, the other being Erie, that make largely unaffected by the Great Depression, the community saw a population up the larger Erie-Meadville, PA Combined Statistical Area. boom at that time. During World War II, the nearby Keystone Ordnance plant brought additional jobs to the area. Meadville was settled on May 12, 1788, by a party of settlers led by David Mead. Its location was chosen well, for it lies at the confluence of Cussewago After World War II, Meadville’s industrial growth continued. The area has Creek and French Creek, and was only a day’s travel by boat to the safety of seen growth in the 1990s and first decade of the 21st century. The song Fort Franklin. “Bittersweet Motel” by Vermont jam band, Phish, was inspired when keyboardist Page McConnell left a wedding in Meadville and drove to the Around 1800, Meadville became an important transportation center after Pittsburgh Airport. construction of the French Creek Feeder Canal in 1837 and of the Beaver and Erie Canal it connected to at Conneaut Lake and subsequent railroad Source: Wikipedia development. Doug Kerr from Albany, NY, United States [CC BY-SA 2.0 (https://creativecommons.org/licenses/by-sa/2.0)], via Wikimedia Commons 12 OFFERING MEMORANDUM | 1011 PARK AVENUE 1011 Park Ave Location Overview MEADVILLE, PENNSYLVANIA 2.5% 0.4% 1.1% 0.3% 3.7% ETHNIC COMPOSITION 26,417 -0.30% White Alone Black Alone POPULATION POPULATION CHANGE (2018) (2000–2016) American Indian Alone Asian Alone $42,646 41.6 Some Other Race Alone Two or More Races MEDIAN INCOME MEDIAN AGE (2018) (2018) 4.38 SQUARE MILES 92.1% 13 OFFERING MEMORANDUM | 1011 PARK AVENUE 04 Tenant Overview Wendy’s 14 OFFERING MEMORANDUM | 1011 PARK AVENUE 1011 Park Ave Tenant Overview Lessee Wendy’s Headquarters Dublin, OH Locations 6,500+ Website www.wendys.com Wendy’s is a fast food restaurant chain founded by Dave Thomas on November 15, 1969, in Columbus,Ohio. The company moved its headquarters to Dublin, Ohio, in 2006. The chain is known for its square hamburger patties—which hang over the edge of a circular bun—as its signature item. Their burgers are all made from fresh ground beef and never frozen. As of 2016, Wendy’s was the world’s third largest hamburger fast food chain with 6,500+ locations, following Burger King and McDonald’s. At the start of 2017 there were a total of 6,537 locations, including 330 that are company-owned. 6,207 restaurants are franchised, and 77% of them are located in North America. Wendy’s menu consists primarily of hamburgers, chicken sandwiches, French fries and beverages, including the signature Frosty, which is a soft-serve frozen dairy dessert. 15 OFFERING MEMORANDUM | 1011 PARK AVENUE 1011 Park Ave KYLE GULOCK Executive Vice President, Partner 310.492.8416 [email protected] LIC #01861385 MATT KRAMER Senior Associate 424.653.1803 [email protected] LIC #01995909 Kidder Mathews 1925 Century Park East, Suite 2350 Los Angeles, CA 90067 kiddermathews.com 16 OFFERING MEMORANDUM | 1011 PARK AVENUE.