OFFERING EXCLUSIVE MEMORANDUM LISTING 2406 Williams Street Cape Girardeau, MO 63703 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 Details . .11 Local Aerial . .12 Local Retailer Map . .13 Local Map. .14 Regional Map . .15 MARKET OVERVIEW Market Overview . 17 COMPETITIVE PROPERTY SET Sales Comparables Map. .19 Sales Comparables . .20-22 MARKET OVERVIEW Demographic Summary . .24-25 3 FINANCIAL ANALYSIS PRICING ANALYSIS IHOP RESTAURANT LEASE SUMMARY FINANCIAL 2406 William Street, Cape Girardeau, MO 63703 Lease Type Absolute Triple Net (NNN) OFFERING PRICE Roof And Structure Tenant Responsible ANALYSIS Price $1,833,000 Lease Guarantor Franchisee Cap Rate 6.50% Original Lease Term 15 Years NOI $119,145 Rent Commencement Date Close of Escrow Gross Leasable Area (GLA) 6,442 SF Lease Expiration Date 15 Years thereafter Price/Rentable SF $284.53 Remaining Lease Term 15 Years Lot Size 1.01 Acres Options 4 (5) Year Year Built/Renovated: 2004/2014 Increases 10% Every 5 Years ANNUALIZED OPERATING DATA RENT INCREASES ANNUAL RENT MONTHLY RENT CAP RATE Years 1 - 5 ($18.49/SF) $119,145 $9,928 6.50% Years 5 - 10 ($20.34/SF) $131,060 $10,921 7.15% Years 11-15 ($22.37/SF) $133,100 $12,013 7.87% Option 1 | Years 16 - 20 $158,582 $13,215 8.65% Option 2 | Years 21 - 25 $174,440 $14,536 9.52% Option 3 | Years 26 - 30 $191,884 $15,990 10.47% Option 4 | Years 31- 35 $211,073 $17,589 11.52% BASE RENT ($18.49/SF) $119,145 TOTAL RETURN 6.50%/$119,145 5 EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS ■■ Substantial Franchisee Operates 160+ Locations ■■ Low Rent At Only $18.49/PSF ■■ Sale/Leaseback Absolute Triple Net Lease EXECUTIVE With 15 Year base Term SUMMARY ■■ Attractive 10% Increases Every 5 Years ■■ Zero Landlord Responsibilities ■■ Approximately 1.4 Miles from Interstate 55 (I-55) ■■ Outparcel to Schnucks Grocery Anchored Shopping Center ■■ Surrounding Retailers Include K-Mart, Schnucks, Wendy's, Buffalo Wild Wings, Walmart Neighborhood Center, Walgreen's, amongst others INVESTMENT OVERVIEW Tiktin Real Estate Investment Services is pleased to present this IHOP Restaurant located at 2406 William Street, Cape Girardeau, Missouri. This property consists of a 6,442-square-foot IHOP Restaurant built in 2004, renovated in 2014, and situated on 1.01 Acres. At the close of escrow, seller will sign a 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 William Street and Route 61, which experiences combined traffic counts in excess of 40,104 vehicles per day. Additionally, this IHOP Restaurant is located just 1.4 miles from Interstate 55 (I-55) and is an outparcel to a Schnucks anchored shopping center. The City of Cape Girardeau has become the regional destination for healthcare, education, entertainment, shopping and employment. Cape Girardeau’s population swells to 100,000 daily. Two state-of-the-art hospitals sit within the city limits. Together, these hospitals serve more than one million people from five states. Southeast Missouri State University welcomes more than 10,000 students from the region and across the world every day. Multiple private and parochial schools and more than fifty churches call Cape Girardeau home. 7 TENANT OVERVIEW Property Property Single Tenant - Restaurant Property Address 2406 William St., Cape Girardeau, MO 63703 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 2406 Williams Street, Cape Girardeau, MO SITE DESCRIPTION Gross Building Area: 6,442 SF PROPERTY Lot Size: 1.01 Acres Ownership: FEE SIMPLE DESCRIPTION Year Built/Renovated: 2004/2014 Number of Stories: 1 Stories Parking: 75 Spaces Parking Ratio: 1.16/1,000 SF Topography: FLAT PARCELS Number of Tax Parcels 1 APN 20-308-00-08-00702-0000