I H O P , M o n t g o m e r y A L | 1

IHOP (For sale/lease)2 9 5 0 E . S o u t h B o u l e v a r d | M o n t g o m e r y, A L

O F F E R I N G M E M O R A N D U M

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E X E C U T I V E S U M M A R Y

f i n a n c i a l O V E R V I E W

a r e a O V E R V I E W

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K Y L E M AT T H E W SBROKER OF RECORD

LIC # 00109289

G a r y c h o u

FVP & Senior Director

Gary.Chou@matthews.comDIR (310) 919-5827MOB (714) 928-8016LIC # 01911222 (CA)

k e v i n c h a n g

Associate

Kevin.Chang@matthews.comDIR (310) 919-5828MOB (951) 616-8918LIC # 01976724 (CA)

I H O P , M o n t g o m e r y A L | 3

• Over $450,000 remaining in corporately guaranteed cash flow – DineEquity is the parent company of IHOP and Applebee’s concepts – Over

$681MM in annual revenue

• Excellent Traffic Counts – Property sits directly on U.S. Highway 80 and experiences over 47,000 VPD

• Montgomery is the Capital of Alabama - Hub for government agencies – Strong military presence – Dense collection of higher education (Alabama

State University, Troy University, Auburn University at Montgomery, Faulkner University and Huntington College)

• Tenants in the immediate trade area include Walmart, LongHorn Steakhouse, Krystal, Dollar Tree, McDonald’s, AutoZone and Church’s Chicken,

among others

• There are over 374,500 people living in Montgomery, of which 131,000 are living in a 5-mile radius from the property

i n v e s t m e n t h i g h l i g h t s

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I H O P ( F O R S A L E / L E A S E )2950 E. South BlvdMontgomery, AL

List Price .................................................................................................................. $1,200,000

CAP Rate - Current .........................................................................................................15.63%

Gross Leasable Area ..............................................................................................± 5,227 SF

Lot Size ................................................................................................................... ± 1.12 Acres

Year Built ...............................................................................................................................1998

Annualized Operating DataMonthly Rent Annual Rent Rent/SF CAP

Current $15,630.49 $187,566 $35.88 15.63%

Option 1 $17,193.54 $206,322 $39.47 17.19%

Option 2 $18,912.89 $226,955 $43.42 18.91%

Option 3 $20,804.18 $249,650 $47.76 20.80%

Lease Rate

$12 per square foot NNN

Tenant Summary

Lease Type NNN

Type of Ownership Fee Simple

Lease Guarantor IHOP Corporate

Roof and Structure Tenant Responsible

Lease Commencement 11/18/1999

Lease Expiration 12/31/2019

Term Remaining ± 2.50 years

Increases 10%

Options Three (3), Five (5) year options

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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 REACH

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 1,700 IHOP restaurants in 50 states.

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

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Oceanside Blvd ± 31,792

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40,11

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Property Name IHOP

Property Address 2950 E South Blvd

Montgomery, AL 36116

Assessor’s Parcel Number 03-10-08-34-01-003-002.002

Site DescriptionNumber of Stories One

Year Built 1998

Gross Leasable Area (GLA) ± 5,227 SF

Lot Size ± 48,787 (1.12 ACRES)

Type of Ownership NNN

Parking ± 100 Surface Spaces

Parking Ratio 1.91 : 1,000 SF

p a r c e l m a p

E South Blvd ±47,000 ADT

I H O P , M o n t g o m e r y A L | 9s u r r o u d i n g t e n a n t s

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POPULATION 1 Mile 3 Mile 5 Mile

2022 Projection 11,399 64,376 130,482

2017 Estimate 11,458 65,022 132,123

2010 Census 11,788 67,178 137,422

2000 Census 10,660 63,841 134,421

HOUSEHOLDS 1 Mile 3 Mile 5 Mile

2022 Projection 4,555 26,276 53,279

2017 Estimate 4,584 26,422 53,833

Growth 2016 - 2021 4,735 27,046 55,752

INCOME 1 Mile 3 Mile 5 Mile

2017 Est. Average Household Income

$46,469 $59,376 $60,398

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Montgomery is the capital of the U.S. state of Alabama and is the county seat of Montgomery County. Named for Richard Montgomery, it is located on the Alabama River, in the Gulf Coastal Plain. As of the 2010 Census, Montgomery had a population of 205,764. It is the second-largest city in Alabama, after Birmingham.

In addition to housing many Alabama government agencies, Montgomery has a large military presence due to Maxwell Air Force Base; public universities Alabama State University, Troy University, and Auburn University at Montgomery; private colleges/ universities Faulkner University and Huntingdon College; high-tech manufacturing, including Hyundai Motor Manufacturing Alabama; and cultural attractions such as the Alabama Shakespeare Festival and Montgomery Museum of Fine Arts.

Montgomery has won several national awards including being voted Best Historic City by USA Today, being named an All-America City in 2014 by the National Civic League, being named a “Top City For Job Growth” in 2014 by ziprecruiter.com, and being named the happiest city in Alabama. Montgomery has also been recognized nationally for its successful, and ongoing downtown revitalization and new urbanism projects with Montgomery having been one of the first cities in the nation to implement Smart Code Zoning.

Montgomery is strategically located at the intersection of Interstate 65 and Interstate 85 at the center of the Black Belt region, making it an economic hub for many industries. It is home to many Alabama government agencies, but also has a strong military presence due to the Maxwell Air Force Base. Public universities like Alabama State University, Troy University, Auburn University at Montgomery, and Faulkner drive revenue into the local economy. Montgomery also has a strong industrial base that includes Hyundai Motor Manufacturing, Mercedes Benz and Honda. In recent years Montgomery has increased employment in the healthcare sector and it serves as a hub for healthcare in central Alabama and the Black Belt Region. This unique diversity provides a well-balanced economic environment that supports and fuels economic growth.

• Ranks as a “Best Place to Start a Business” of the U.S. most populated cities

• Top City for Job Growth by ZipRecruiter.com

• “Best City for First-Time Home Buyers in Alabama”

• Happiest city in Alabama

M o n t g o m e r y, a l a b a m a

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N at i o n a l ly R a n k e d Q u a l i t y o f L i v i n g

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of IHOP (Dark) located at 2950 E. South Boulevard, Montgomery, AL (“Property”) . I t has been prepared by Matthews Real Estate Investment Services. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Real Estate Investment Services. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Real Estate Investment Services expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Real Estate Investment Services or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T

I H O P , M o n t g o m e r y A L | 1 3

BROKER OF RECORD

e x c l u s i v e ly l i s t e d b y

IHOP (for sale/lease) ™

K Y L E M AT T H E W SBROKER OF RECORD

LIC # 00109289

G a r y c h o u

FVP & Senior Director

Gary.Chou@matthews.comDIR (310) 919-5827MOB (714) 928-8016LIC # 01911222 (CA)

k e v i n c h a n g

Associate

Kevin.Chang@matthews.comDIR (310) 919-5828MOB (951) 616-8918LIC # 01976724 (CA)

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