OFFERING EXCLUSIVE MEMORANDUM LISTING 2607 Blue Heron Drive Marion, IL 62901 ACTUAL PROPERTY PHOTO Actual Property Photo The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is in- tended to be reviewed only by the party receiving it from Tiktin Real Estate Investment Services and should not be made available to any other person or entity without the written consent of Tiktin Real Estate Investment Services. This Marketing Brochure 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 CONFIDENTIALITY herein is not a substitute for a thorough due diligence investigation. Tiktin Real Estate Investment Services has not made any investigation, and makes no warranty or representation, with respect to the income or expenses AND DISCLAIMER for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the finan- cial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Tiktin Real Estate Investment Services has not verified, and will not verify, any of the information contained herein, nor has Tiktin 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. NON-ENDORSEMENT NOTICE: Tiktin Real Estate Investment Services, Inc. (“Tiktin”) is not affiliated with, sponsored by, or endorsed by any com- mercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Tiktin, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Tiktin, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR TIKTIN REAL ESTATE INVESTMENT SERVICES AGENT FOR MORE DETAILS. 2 FINANCIAL ANALYSIS TABLE OF Pricing Analysis . .5 EXECUTIVE SUMMARY CONTENTS Investment Overview . .7 Tenant Overview . 8-9 PROPERTY DESCRIPTION Property Photos. .10 Property Details . .11 Local Aerial . .12-16 Local Retailer Map . .17 Regional Map . .18 MARKET OVERVIEW Market Overview . 20 COMPETITIVE PROPERTY SET Sales Comparables Map. .22 Sales Comparables . .23-25 MARKET OVERVIEW Demographic Summary . .27-28 3 FINANCIAL ANALYSIS PRICING ANALYSIS IHOP RESTAURANT LEASE SUMMARY FINANCIAL 2607 Blue Heron Drive, Marion, IL 62901 Lease Type Absolute Triple Net (NNN) OFFERING PRICE Roof And Structure Tenant Responsible ANALYSIS Price $1,833,000 Lease Guarantor Franchisee Cap Rate 6.00% Original Lease Term 15 Years NOI $110,000 Rent Commencement Date Close of Escrow Gross Leasable Area (GLA) 5,000 SF Lease Expiration Date 15 Years thereafter Price/Rentable SF $366.60 Remaining Lease Term 15 Years Lot Size 1.2 Acres Options 4 (5) Year Year Built 2016 Increases 10% Every 5 Years ANNUALIZED OPERATING DATA RENT INCREASES ANNUAL RENT MONTHLY RENT CAP RATE Years 1 - 5 (22.00/SF) $110,000 $9,167 6.00% Years 6 - 10 ($24.20/SF) $121,000 $10,083 6.60% Years 11-15 ($26.62/SF) $133,100 $11,092 7.26% Option 1 | Years 16 - 20 $146,410 $12,201 7.99% Option 2 | Years 21 - 25 $161,051 $13,421 8.78% Option 3 | Years 26 - 30 $177,156 $14,763 9.66% Option 4 | Years 31- 35 $194,872 $16,239 10.63% BASE RENT ($22.00/SF) $110,000 TOTAL RETURN 6.00%/$110,000 5 EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS ■■ Substantial Franchisee Operates 160+ Locations ■■ Sale/Leaseback Absolute Triple Net Lease With 15 Year Base Term EXECUTIVE ■■ Attractive 10% Increases Every 5 Years SUMMARY ■■ Zero Landlord Responsibilities ■■ Approximately .4 Miles from Interstate 57 (I-57) ■■ Brand New Construction ■■ Surrounding Retailers Include Menards, Krispy Kreme Doughnuts, Logan's Roadhouse, Walmart Supercenter, Applebee's, Panera Bread, amongst others INVESTMENT OVERVIEW Tiktin Real Estate Investment Services is pleased to present this IHOP Restaurant located at 2607 Blue Heron Drive, Marion, IL 62901. This property consists of approximately a 5,000-square-foot IHOP Restaurant built in 2016 and situated on 1.2 Acres. At the close of escrow, seller will sign a brand new 15 year Triple Net (NNN) lease. The lease will provide for zero landlord responsibilities, 10 percent increases every 5 years and four, 5 year options. Annual rent will be initially set at $110,000 per year. This property offers direct frontage, signage and access along Blue Heron Drive and The Hill Avenue. Additionally, this IHOP Restaurant is located just .4 miles from Interstate 57 (I-57) and sits across the street from Rent One Park, which is home of the Souther Illinois Minors of the Frontier League, an independent professional organization. The Mayor of Marion for more than 50 years, Bob Butler nicknamed the City of Marion "The Hub of the Universe." Located at the crossroads of Illinois Route 13 and Interstate 57, Marion serves as the center for shopping, dining, and entertainment in Souther Illinois. With access to Interstate 24 just to the south, Marion is a point of access to major cities like Chicago, Nashville, and St. Louis. 7 TENANT OVERVIEW Property Property Single Tenant - Restaurant Property Address 2607 Blue Heron Drive, Marion, IL 62901 TENANT Tenant Tenant Trade Name IHOP Restaurant OVERVIEW Ownership Private Tenant Franchisee Lease Guarantor Franchisee Sales Volume N/A LEASE Lease Commencement Date Close of Escrow Rent Commencement Date Close of Escrow Lease Expiration Date 15 Years thereafter Lease Type Absolute Triple Net (NNN) Roof and Structure Tenant Responsibility Lease Term 15 Years Year 1 Net Operating Income $110,000 Increases 10 Percent Every 5 Years OPTIONS Options to Renew 4 (5) Year Options to Terminate N/A Options to Purchase N/A First Right of Refusal N/A International House of Pancakes, stylized as its acronym, IHOP, is an American multinational pancake house/ fast casual family restaurant chain that specializes in breakfast foods. It is owned by DineEquity, with 99% of the restaurants run by independent franchisees. While IHOP's focus is on breakfast foods, it also offers a menu of lunch and dinner items. The company has 1,650 locations in North America, Latin America, the Middle East, Southeast Asia, and Oceania. It is known for many of its locations being open 24 hours a day, 7 days a week. 8 FRANCHISEE OVERVIEW Principal - Andy Patel Anand D Patel, known as Andy, is the principal of a multi franchisee group which has been involved in the restaurant businesses for more than 29 years. Andy started his restaurant career in the late 1980's with Wendy's Restaurants in Laurel, Maryland. Within 6 months he was promoted to TENANT Assistant Manager, while holding part-time positions at McDonald's, OVERVIEW Domino's and Burger King. In 1992, Andy purchased his first restaurant and helped turn its operating loss into a profit within one year. In 1994, he purchased an IHOP restaurant from Corporate and doubled the revenue within one year. That year, he won an award for highest sales increase across all IHOPs nationwide. In 2002, he bought another restaurant and won the highest sales increase in the country. He has won various awards throughout his career for his management approach including "Franchisee of the Year" from Florida's IHOPs in 1994, 1995, and 2002. Since Andy's first IHOP restaurant purchase, he has expanded his portfolio to 5 IHOP Restaurants, 73 Burger King Restaurants, and 18 Pizza Hut Restaurants. He has also added 9 Applebee's Restaurants in New Mexico, 20 Applebee's Restaurants in Virginia, and recently another 22 Applebee's Restaurants in the Memphis Tennessee area. Andy manages over $250 million in revenue and just over 5,000 active employees with just as much dedication and conviction as he did when he started working in the industry. Besides being a successful Entrepreneur, Andy is a proud family man. He enjoys spending quality time with his beautiful wife of 20 years, Anissa, and 4 children. His favorite pastimes include watching football, basketball, and going to the movies. In addition to work, family, friends, and pastimes, he enjoys donating to various local charities and sits on the board for West Palm Beach Homeland Security. 9 PROPERTY PHOTOS ACTUAL PROPERTY PHOTO PROPERTY DETAILS THE OFFERING Property IHOP Restaurant Property Address 2607 Blue Heron Drive, Marion, IL 62901 SITE DESCRIPTION Gross Building Area: 5,000 SF (Approximately) PROPERTY Lot Size: 1.2 Acres Ownership: FEE SIMPLE DESCRIPTION Year Built: 2016 Number of Stories: 1 Stories Parking: N/A Parking Ratio: N/A Topography: FLAT PARCELS Number of Tax Parcels 1 APN 06-11-351-001 CONSTRUCTION Foundation Concrete Framing Concrete Exterior Concrete Parking Surface Asphalt Roof Flat MECHANICAL HVAC Central Air Fire Protection Fully Sprinkled & Monitored Utilities City of Marion ZONING PUD: N/A ACCESS POINTS Blue Heron Drive & The Hill Avenue UTILITIES Gas Tenant Electric Tenant Water Tenant Sewer Tenant Trash: Tenant 11 PROPERTY DESCRIPTION LOCAL MAP 12 PROPERTY DESCRIPTION LOCAL MAP 13 PROPERTY DESCRIPTION LOCAL MAP 14 PROPERTY DESCRIPTION LOCAL MAP 15 PROPERTY DESCRIPTION LOCAL MAP 16 PROPERTY DESCRIPTION AERIAL PHOTO SUBJECT PROPERTY 17 PROPERTY DESCRIPTION REGIONAL MAP SUBJECT PROPERTY 18 MARKET OVERVIEW MARION OVERVIEW Marion is a city in and the county seat of Williamson County, Illinois, United States.