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

ARBY’S1 1 31 W e stow n e D r N e e n a h , W I 54956

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2 | O f f e r i n g M e m o r a n d u m™

WINNECONNE AVE

FOX COMMUNITIESCREDIT UNION

COMMUNITY FIRSTCREDIT UNION

™

Winneconne ± 29,000 ADT

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exclusively listed by

contents04

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EXECUTIVE SUMMARY

financial OVERVIEW

area OVERVIEW

tenant overview

beau BeachBROKER OF RECORD

LIC # 55685-090

jeff miller

Associate

jef fery.mi l ler@matthews.comDIR (424) 220-7263MOB (817) 239-1566LIC # 02013110 (CA)

Kyle B MatthewsChairman & CEO

Kyle.Matthews@matthews.comDIR (310) 919-5757LIC # 01469842 (CA)

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executive summary

investment highlights

• Located across from a Wal-Mart Super Center & Kohl’s Department Store, retailers within 1 block include Walgreen’s, Applebee’s, Taco Bell, Culver’s and Qdoba providing a strong retail presence

• Conveniently located on Winneconne Ave with over 29,000+ vehicles per day and just off the interstate 41 which boasts 90,000+ vehicles per day

• Attractive Demographics with an average household income of $75,000 within a 5-mile radius

GREAT LOCATION IN A STRONG RETAIL CORRIDOR

• Absolute NNN investment with zero landlord responsibilities

• Annual 1% increases provide a strong hedge against inflation with three (3) Five (5) year options

• Operated by DRM, the 2nd largest Arby’s franchisee with over 70+ locations founded in 1977

STRATEGIC INVESTMENT PROPERTY WITH EXCELLENT OPERATOR

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WINNECONNE AVE

HIGHWAY 41

Win

neco

nne

± 29,0

00 ADT

Highway 41 ± 90,000 ADT

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financialoverview

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Arby’s1131 Westowne DrNeenah, WI 54956

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

CAP Rate - Current ..........................................................................................................6.39%

Gross Leasable Area .............................................................................................. ± 3,312 SF

Lot Size ...................................................................................................................± 1.01 Acres

Year Built .............................................................................................................................2005

Annualized Operating DataMonthly Rent Annual Rent Rent/SF Cap Rate

Current $6,393.67 $76,724 $23.17 6.39%

Option 1 $6,787.00 $81,444 $24.59 6.78%

Option 2 $7,133.17 $85,598 $25.84 7.13%

Option 3 $7,497.08 $89,965 $27.16 7.49%

Tenant Summary

Tenant Trade Name Arby’s

Type of Ownership Fee Simple

Lease Guarantor DRM, Inc.

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 17 Years

Lease Commencement Date 7/20/2005

Rent Commencement Date 7/20/2005

Lease Expiration Date 7/31/2022

Term Remaining on Lease ± 5.25 Years

Increases 1% annual

Options Three (3), Five (5) Year

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tenantoverview

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Arby’s

Arby’s Fast Crafted restaurant services feature a unique blend of quick-serve speed combined with the quality and made-for- you care of fast casual. Arby’s Restaurant Group, Inc. is the franchisor of the Arby’s Brand and is headquartered in Atlanta, GA. Arby’s Restaurant Group (ARG) operates the Arby’s fast food chainpopular for its hot roast beef sandwiches. In addition to roast beef sandwiches, its menu features chicken sandwiches, salads, and some dessert items. More than 1,100 Arby’s locations are company-owned, while the rest are franchised.

Arby’s record yearArby’s had a record year in 2016 and pushed sales over $3.6 billion according to QSR magazine. Arby’s outperformed the quick service industry by 2.3 percentage points and marked 25 consecutive quarters of SSS growth. The fourth quarter of 2016, marked 11 consecutive quarters of transaction growth and 16 consecutive quarters of industry performance for the brand. Arby’s plans to continue high volume sales by inking deals with new and exciting Arby’s franchisees for the development of 167 new restaurants system wide.

DRM FranchiseDRM is a family-owned and operated company, which was founded in 1977. Currently, DRM owns and operates 73 Arby’s Restaurants in four states with the Corporate Office located in Omaha, Nebraska. DRM has become a leader in technology and are able to access critical operational data on a real-time basis at the corporate district and unit level. DRM is the 2nd largest Arby’s franchisee and was the recipient of the West Regional Serve, Refresh, Delight Award at the Arby’s 2015 National Franchise Convention.

Company Name Arby’s

Parent Company Trade Name Arby’s Restaurant Group, Inc.

Ownership Private

No. of Locations ± 3,500

No. of Employees ± 130,000

Headquartered Sandy Springs, GA

Web Site www.arby’s.com

Year Found 1964

1 0 | O f f e r i n g M e m o r a n d u m

Col

lege

Blv

d ±

40,11

6

the offering

Property Name Arby’s

Property Address 1131 Westowne Dr

Neenah, WI 54956

Assessor’s Parcel Number 807-10220000

Zoning PDD

Site DescriptionNumber of Stories One

Year Built 2005

Gross Leasable Area (GLA) ± 3,312 SF

Lot Size ± 1.01 Acres (43,560 SF)

Type of Ownership NNN

Parking ± 40 Surface Spaces

Parking Ratio 12.07 : 1,000 SF

Landscaping Professional

Topography Generally Level

ConstructionFoundation Concrete Slab

Framing Steel

Exterior Brick

Parking Surface Asphalt

Roof Flat

Oceanside Blvd ± 31,792

parcel map

Traffic Counts > Winneconne Ave ± 29,000 ADT > Highway 41 ± 90,000 ADT> Tullar Rd ± 6,000 ADT

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surrounding tenants

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demographics

POPULATION 1 Mile 3 Mile 5 Mile

2022 Projection 6,777 37,038 61,869

2017 Estimate 6,738 36,433 60,886

2010 Census 6,720 35,557 59,552

Growth 2017 - 2022 0.58% 1.66% 1.61%

Growth 2010 - 2017 0.26% 2.46% 2.24%

HOUSEHOLDS 1 Mile 3 Mile 5 Mile

2022 Projection 3,048 15,969 26,696

2017 Estimate 2,996 15,551 26,051

Growth 2017 - 2022 1.74% 2.69% 2.48%

INCOME 1 Mile 3 Mile 5 Mile

2017 Est. Average Household Income

$64,073 $77,070 $75,434

area overview

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regional map

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neenah, WINeenah is a city in Winnebago County, Wisconsin. It is situated on the banks of Lake Winnebago, Little Lake Butte des Morts, and the Fox River. Neenah is sometimes referred to as a twin city of the City of Menasha with which it shares Doty Island. Neenah is part of the Fox Cities metropolitan area which is the fastest growing urban center in Wisconsin.

Neenah provides the perfect blend of small town spirit along with the convenience of living in an urban center. A vibrant private-public partnership has brought significant economic growth and community enrichment programs to our city, as well as social, cultural and recreational events for people of all ages.

Neenah offers something special for everyone and has plenty of historic charm and natural beauty. The Fox Valley metro area’s business climate has earned it the ranking of third best market for business development among all small metropolitan areas in the nation. There are plenty of attractions in Neenah and something for everyone. Bergstrom-Mahler Museum of Glass is a regional art museum with glass-focused programming.

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Business Climate

Employer Industry# of

Employees

Kimberly-Clark Corp Paper Products 2,475

Plexus CorpComputer Products

1,697

Theda Clark Medical Center Health Care 1,330

Neenah Foundry, IncCast Metal Products

850

Neenah Joint School District Education 749

Neenah Paper Paper Products 515

Alta ResourcesOutsourced

Customer Care500

top employers

Industrial manufacturing within Neenah has for many years represented the driving force of the local economy. Thirty percent of the City’s workforce holds employment within industrial manufacturing. Paper production and machinery manufacturing, commercial printing, and machining/ fabricating represent the major industrial activities which dominate within the city. Well-developed infrastructure which facilitates the production and movement of goods continues to be enhanced within the community

The existing industrial base is exceptionally diverse and well positioned to address both local and global market challenges. It is possible for manufacturing sectors within Neenah to continue to diversify and address the many changes which are shaping the global economy. Strong leadership, innovation and expertise will remain the cornerstone of a health advance manufacturing cluster within the City of Neenah.

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The Fox Cities of Northeastern Wisconsin are the cities, towns and villages along the Fox River as it flows from Lake Winnebago northward into Green Bay.

A center of paper making and printing, the area is one of the 50 top manufacturing regions in the nation. Companies such as Kimberly-Clark and Pierce Manufacturing were founded more than 100 years ago and remain the region’s largest employers today.

In the Fox Cities area there are plenty of cultural activities, dining and nightlife in downtown Appleton. The Charles A. Grignon Mansion known to countless travelers is known as “The Mansions in the Woods”. It is a National and State Historic Site that is a proud reminder of the state’s beginnings. The house currently serves as a museum and was added to the National Register of Historic Places in 1972. The EAA AirVenture Museum is one of the most extensive aviation attractions in the world, a year-round destination for the entire family. There is a collection of more than 250 historic airplanes.

The Fox City area has great shopping and is home to the Fox River Mall. The Fox River Mall is a super regional shopping center of 1.2 million square feet making it the largest shopping mall in Wisconsin. The Fox River Mall features more than 140 retailers including Macy’s, Scheels, Pottery Barn, Ann Taylor, Build-A-Bear and many more of the nation’s top brands. The mall has over 16 million visitors each year and is a must-stop shopping destination.

The Fox Cities offer an exciting array of venues-from Earth’s core to the cosmos and everything in between. Getting out in nature is easy at the many inviting parks and unique nature centers. Appleton Memorial Park Gardens features many gardens including a native rose garden, serenity butterfly garden, native wildflower garden, fragrance garden, Veterans memorial garden and a water feature. You can stroll through the themed gardens which have been designed to offer changing patterns of natural beauty throughout the year. Most of the plants featured are native to Wisconsin.

fox cities

400,000Fox Cities Region Population

1 .5 HOursTo Milwaukee

69%Labor Force Participation

outpacing Wisconsin

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This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Arby’s located at 1131 Westowne Dr, Neenah, WI 54956 (“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

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BROKER OF RECORD

exclusively listed by

Arby’s1131 Westowne Dr | Neenah , WI 54956

™

beau BeachBROKER OF RECORD

LIC # 55685-090

jeff miller

Associate

jef fery.mi l ler@matthews.comDIR (424) 220-7263MOB (817) 239-1566LIC # 02013110 (CA)

Kyle B MatthewsChairman & CEO

Kyle.Matthews@matthews.comDIR (310) 919-5757LIC # 01469842 (CA)