Corporate Ground Lease Investment Property

F E A T U R E SCorporate ground lease with Wendy’s International

3,031 SF Wendy’s on 1.103 acre at corner trafficlight.Builtin1999.

20yearinitialtermlease:January1999thru December2019

Currentrent$35,937peryearNNN Saleprice:$495,000;Caprate:7.26%

LOCATIONWendy’s10775 Reading RoadCincinnati, OH 45241

CONTACTJohn Thompsonjohn.thompson@everestrealestate.com

513/769-2514

Chris Nachtrabchris.nachtrab@everestrealestate.com

513/769-2509

Wendy’sInternational, Inc.

Demographics: 1-mile 3-miles 5-milesTotalPopulation: 3,622 39,293 145,252TotalHouseholds 1,556 16,636 60,989Avg.HHIncome: $70,105 $78,961 $80,383

TrafficCount:ReadingRoadNofGlendaleMilfordRoad=17,298AADT2009

The information submitted is not guaranteed. Although obtained from reliable sources, it is subject to errors, omissions, prior sale and withdrawal from the market without notice.

Wendy’sHamburgersatcornertrafficlightentrancetoSportsPlus,anindoorhockey,basketball,volleyballfacilityservingover43,000visitorsperweek.LocatedonbusyRead-ingRoadinEvendale,Ohio,hometoGeneralElectric’sjetenginemanufacturingfacilityandFormicaGroupNorthAmerican.Daytimeemploymentpopulationisapproximately25,000.JustnorthofanewWalMartandMenard’s.NiceincomeproducingpropertywithnoLandlordduties.Tenantisresponsibleforalltaxes,insuranceandinterior/exteriormaintenance.

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Wendy’s 3,031 SF Building on 1.103 Acres10775 Reading Road Evendale, OH 45241

Purchase Pro Forma September 2014Asking Price $495,000

Based upon purchase at $495,000 ($163.31 PSF)

Purchase Price $495,000

Cash Down Payment 20% $95,000 $400,000Financing$400,000 at 4% 20 year amortization, 5 year balloon

Monthly payment of $2,400 x 12 = $28,800/year

VS. NOI of $35,937 = $7,137 cash flow. 7.21% cash on cash return.

Purchase price of $495,000 vs. net income of $35,937 = return of 7.26%.

Lease Years Fixed Annual Rental Monthly Payment CURRENT RENT January 1, 2015 - Dec. 31, 2019 $35,937.00 $2,995.001st five year renewal term $39,531.00 $3,294.252nd five year renewal term $43,483.00 $3,623.583rd five year renewal term $47,832.00 $3,986.004th five year renewal term $52,615.00 $4,384.58

IMPORTANT LEASE CLAUSESTenant Right of First Refusal Wendy’s has a 30 day first right of refusal on the sale of the property. Wendy’s has indicated they do not want to purchase the property, but accepted purchase contracts will have to be present-ed to Wendy’s .

Tenant Termination Right The lease gave Wendy’s the right to terminate the lease at any time after year 10 of the lease if sales did not exceed $1.1M in year 10. We believe that this right is not valid as sales have exceeded this amount. Wendy’s also waived this right in an Estoppel Certificate dated December 2, 2014.

If Wendy’s does vacate the site at the end of their lease term, a replacement tenant could potentially pay a higher rent. The market should support rent in the $15-20 PSF NNN range. Other fast food operators are actively ex-panding in the Cincinnati market including Hardee’s, Raising Cane’s and Jack in the Box.

$35,937 per year NNN (= to $11.85 PSF NNN) FOR SALE $495,000 7.26% Cap Rate

AVAILABLE INFORMATION• Wendy’s lease• Phase 1 Environmental dated December 2014• Title Information

Mr. John Thompsonjohn.thompson@everestrealestate.com513.769.2514

Mr. Chris Nachtrabchris.nachtrab@everestrealestate.com513.769.2509

The information submitted is not guaranteed. Although obtained from reliable sources, it is not subject to errors, omissions, prior sale and withdrawal from the market without notice.

Commercial Real Estate513.769.2500

www.everestrealestate.com

Dusty Rhodes, Hamilton County Auditor generated on 9/5/2014 11:58:39 AM (EST)

Summary

Parcel ID Address Index Order Card

611-0030-0244-00 10775 READING RD Street Address 1 of 1

Tax Dist 179 EVENDALE-PRINCETON CSD-00360 School Dist 17 PRINCETON CSD Land Use 435 Drive-in restaurant or food service Finished Square Ft. 3031 Acreage 1.103 Appraisal Area EVENDALE 61101 EVENDALE 01

Sales

Year Built 1999 Total Rooms 0 # of bedrooms 0 Full Bathrooms 0 Half Bathrooms 0

Property Information

WS READING RD

1.103 ACS

R1-T4-S29

Owner Information

Call 946-4015 if Incorrect

ICELANDS ACQUISITIONS LLC

10826 OMAHA TRACE

UNION, KY 41091-9224 USA

Mail Information

Call 946-4800 if Incorrect

WENDY 'S/ARBY'S GROUP ATT

PROPERTY TAX

1155 PERIMENTER CENTER WEST

ATLANTA, GA 30338 USA

Board of Revision No Rental Registration No Homestead No Owner Occupancy Credit No New Construction No Foreclosure No Date 7/2/1998 Conveyance # 9263 Sale Amount $250,000 # of Parcels 1 Deed Type 10 LW-Limited Warranty Deed Number 845045

Other Assessments No Front Ft. 0.00 Mkt Land Value 322,880 Cauv Value 0 Mkt Impr Value 310,090 Mkt Total Value 632,970 Total TIF Value 0 Abated Value 0 Exempt Value 0 Taxes Paid $14,975.84

(See Payments Tab For Details)

Tax % to valuefor this tax district

0.000%

Note

Data updated on 09/04/14

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Top 50 Sorted by Average Sales Per Unit The top quick-serve and fast-casual brands in the nation.

QSR 50 Rank

Company Segment

2010 U.S. Systemwide Sales (millions)

2010 U.S. Average Sales per Unit (thousands)

Total Units in 2010

Total Change in Units from 2009

11 Chick-fil-A chicken $3,582.5 $2,694.4 1,537 57 1 McDonald’s burger $32,395.0 $2,400.0 14,027 47 42 Jason’s Deli sandwich$503.2 $2,226.6 226 11 13 Panera Bread sandwich$3,100.0 $2,200.0 1,453 73

45 In-N-Out Burger*

burger $472.5 $1,925.0 252 13

18 Chipotle mexican $1,840.0 $1,800.0 1,084 129 25 Whataburger burger $1,225.7 $1,709.0 717 15 33 Culver’s burger $689.1 $1,641.2 424 11

27 Steak N Shake*

burger $786.6 $1,590.0 487 2

31 Bojangles’ chicken $712.8 $1,573.3 484 27 28 Zaxby’s chicken $777.6 $1,548.0 514 22

4 Wendy’s* burger $8,340.0 $1,418.0 6,576 35

38 El Pollo Loco chicken $557.0 $1,400.0 412 -3 23 Carl’s Jr.* burger $1,310.0 $1,375.0 1,097 11

15 Jack in the Box

burger $2,934.8 $1,322.0 2,206 -6

Executive Summary10775 Reading Rd, Cincinnati, Ohio, 45241 Prepared by Melissa WhiteheadWendy'sRings: 1, 3, 5 mile radii Latitude: 39.262859263

Longitude: -84.41649667

1 mile 3 miles 5 milesPopulation

2000 Population 4,017 41,996 148,870

2010 Population 3,617 39,595 145,421

2013 Population 3,622 39,293 145,252

2018 Population 3,645 39,172 145,902

2000-2010 Annual Rate -1.04% -0.59% -0.23%

2010-2013 Annual Rate 0.04% -0.24% -0.04%

2013-2018 Annual Rate 0.13% -0.06% 0.09%2013 Male Population 48.4% 48.3% 47.8%2013 Female Population 51.6% 51.7% 52.2%2013 Median Age 42.8 42.2 41.9

In the identified area, the current year population is 145,252. In 2010, the Census count in the area was 145,421. The rate of change since2010 was -0.04% annually. The five-year projection for the population in the area is 145,902 representing a change of 0.09% annually from2013 to 2018. Currently, the population is 47.8% male and 52.2% female.

Median Age

The median age in this area is 41.9, compared to U.S. median age of 37.3.

Race and Ethnicity2013 White Alone 87.1% 74.6% 73.0%

2013 Black Alone 6.8% 15.9% 17.9%2013 American Indian/Alaska Native Alone 0.2% 0.2% 0.2%2013 Asian Alone 2.8% 4.9% 4.1%2013 Pacific Islander Alone 0.0% 0.1% 0.2%2013 Other Race 0.9% 2.0% 2.3%2013 Two or More Races 2.3% 2.4% 2.4%2013 Hispanic Origin (Any Race) 2.4% 4.3% 5.4%

Persons of Hispanic origin represent 5.4% of the population in the identified area compared to 17.4% of the U.S. population. Persons ofHispanic Origin may be of any race. The Diversity Index, which measures the probability that two people from the same area will be fromdifferent race/ethnic groups, is 49.2 in the identified area, compared to 62.1 for the U.S. as a whole.

Households

2000 Households 1,613 17,202 61,2552010 Households 1,542 16,684 60,8412013 Total Households 1,556 16,636 60,9892018 Total Households 1,572 16,626 61,3402000-2010 Annual Rate -0.45% -0.31% -0.07%2010-2013 Annual Rate 0.28% -0.09% 0.07%2013-2018 Annual Rate 0.21% -0.01% 0.11%2013 Average Household Size 2.29 2.34 2.35

The household count in this area has changed from 60,841 in 2010 to 60,989 in the current year, a change of 0.07% annually. The five-yearprojection of households is 61,340, a change of 0.11% annually from the current year total. Average household size is currently 2.35,compared to 2.36 in the year 2010. The number of families in the current year is 38,315 in the specified area.

September 04, 2014

©2014 Esri Page 1 of 2

Data Note: Income is expressed in current dollarsSource: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2013 and 2018. Esri converted Census 2000 data into 2010 geography.

Executive Summary10775 Reading Rd, Cincinnati, Ohio, 45241 Prepared by Melissa WhiteheadWendy'sRings: 1, 3, 5 mile radii Latitude: 39.262859263

Longitude: -84.41649667

1 mile 3 miles 5 milesMedian Household Income

2013 Median Household Income $54,858 $56,826 $56,8322018 Median Household Income $61,721 $66,768 $67,2122013-2018 Annual Rate 2.39% 3.28% 3.41%

Average Household Income

2013 Average Household Income $70,105 $78,961 $80,3832018 Average Household Income $82,678 $93,718 $96,1792013-2018 Annual Rate 3.35% 3.49% 3.65%

Per Capita Income

2013 Per Capita Income $30,095 $33,383 $33,8952018 Per Capita Income $35,530 $39,670 $40,5642013-2018 Annual Rate 3.38% 3.51% 3.66%

Households by Income

Current median household income is $56,832 in the area, compared to $51,314 for all U.S. households. Median household income isprojected to be $67,212 in five years, compared to $59,580 for all U.S. households

Current average household income is $80,383 in this area, compared to $71,842 for all U.S households. Average household income isprojected to be $96,179 in five years, compared to $83,667 for all U.S. households

Current per capita income is $33,895 in the area, compared to the U.S. per capita income of $27,567. The per capita income is projected tobe $40,564 in five years, compared to $32,073 for all U.S. households Housing

2000 Total Housing Units 1,662 18,051 64,3822000 Owner Occupied Housing Units 1,176 11,706 41,8552000 Owner Occupied Housing Units 437 5,496 19,4002000 Vacant Housing Units 49 849 3,127

2010 Total Housing Units 1,635 18,042 66,2142010 Owner Occupied Housing Units 1,132 11,164 40,1152010 Renter Occupied Housing Units 410 5,520 20,7262010 Vacant Housing Units 93 1,358 5,373

2013 Total Housing Units 1,658 18,226 66,8372013 Owner Occupied Housing Units 1,110 10,857 39,1552013 Renter Occupied Housing Units 446 5,780 21,8342013 Vacant Housing Units 102 1,590 5,848

2018 Total Housing Units 1,645 18,325 67,3472018 Owner Occupied Housing Units 1,133 11,005 39,9342018 Renter Occupied Housing Units 439 5,621 21,4062018 Vacant Housing Units 73 1,699 6,007

Currently, 58.6% of the 66,837 housing units in the area are owner occupied; 32.7%, renter occupied; and 8.7% are vacant. Currently, inthe U.S., 56.4% of the housing units in the area are owner occupied; 32.3% are renter occupied; and 11.3% are vacant. In 2010, therewere 66,214 housing units in the area - 60.6% owner occupied, 31.3% renter occupied, and 8.1% vacant. The annual rate of change inhousing units since 2010 is 0.42%. Median home value in the area is $169,757, compared to a median home value of $177,257 for the U.S.In five years, median value is projected to change by 3.31% annually to $199,816.

September 04, 2014

©2014 Esri Page 2 of 2

Data Note: Income is expressed in current dollarsSource: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2013 and 2018. Esri converted Census 2000 data into 2010 geography.