Hardee's - Hamilton, OH

HARDEE’S – CINCINNATI, OH MSA

JAMES CAPITAL ADVISORS, INC.

JAMES CAPITAL ADVISORS

MARKETING PACKAGE

1510 S. Erie Hamilton, OH 45011

CONTENTS

PAGE

Investment Summary

03

Lease Summary

04

Investment Highlights

05

Rent Schedule

06

Retail Aerials

07

Site Plan

10

About the Brand

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Location Overview

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CONTACT INFORMATION

Richard Brehaut

Vice President, Net Lease (424) 325-2608 richard@jamescapitaladvisors.com

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HARDEE’S – CINCINNATI, OH MSA

INVESTMENT SUMMARY Tenant Street Address City State Zip GLA Lot Size Year Built

Hardee’s 1510 S. Erie Hamilton OH 45011 3,087 SF

$2.0M 5.75% 5.75% $119,450 $119K $2,077,000 PURCHASE PRICE

CAP RATE

NET OPERATING INCOME

1.24 AC

Price / SF

$672.82

2017

Rent / SF

$38.69

Long-Term Absolute Net (NNN) Lease In August 2019, Hardee’s signed a long-term 20-Year Absolute Net lease with ten, five-year options.

Brand New Construction The building was constructed in 2017 and features Hardee’s latest prototype.

Attractive Rental Increases to Hedge Against Inflation The lease will feature 10% increases every 5 years, including options, giving the landlord the benefit of compounding rent growth throughout the base term and option periods.

Corporate Guarantee from Premier Hardee’s Franchisee StarCorp, LLC is one of the fastest-growing franchisee’s in the CKE System with 135+ Units Nationwide.

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1510 S. Erie, Hamilton, OH 45011

HARDEE’S – CINCINNATI, OH MSA

LEASE SUMMARY Lease Type

Absolute Net (NNN)

Type of Ownership

Fee Simple

Real Estate Taxes

Tenant Responsible

Insurance

Tenant Responsible

Original Lease Term

20 Years

Roof & Structure

Tenant Responsible

Commencement Date

8/5/2019

Lease Guarantor

Franchisee

Lease Expiration

8/31/2039

Company Name

StarCorp

Term Remaining

19+ Years

Increases Options

10% Every Five Years

Ownership Number of Locations

Private 135+

Ten (10), Five-Year

Decades of Successful Operating History Founded in 1960, Hardee’s was acquired in 1997 by CKE Restaurants Holdings, Inc., the parent company of Carl’s Jr. Today, there are more than 1,932 Hardee’s locations nationwide.

Pad Site to 90K SF Kroger Anchored Shopping Center The subject property is located on a pad to Shoppes at Hamilton, a 90K square foot Kroger-anchored retail center that is 98% occupied. Co-tenants include Kroger Fuel Center, Skyline, Sonic, Great Clips and Little Caesars.

Shadow Anchored by Hamilton Crossings Shopping Center The subject property is shadow anchored by Hamilton Crossings, a 201K SF Dollar Tree anchored shopping center. Co Tenants include Burger King, Rally’s, Jackson Hewitt and Gold Star Chili.

Kroger Shopping Center 04

Strong Demographics There are 69K people within three miles and 144K people within five miles of the subject property.

1510 S. Erie, Hamilton, OH 45011

HARDEE’S – CINCINNATI, OH MSA

Investment Highlights

Excellent Site Level Visibility The subject property is located on the SE. Corner of the intersection of Grand Blvd and S. Erie Blvd with combined daily traffic counts exceeding 30,538 vehicles per day.

Home of Miami University Regionals Hamilton Campus Hamilton is home to a regional branch of the Miami University known as “the Yale of the West”. This branch boasts a body of approximately 3,000+ students.

Expanding Options at Miami University Regionals Hamilton Campus Industrial Realty Group has invested $5 million into the Third + Dayton complex in downtown Hamilton to create more housing options, primarily for students of Miami University Hamilton.

Miami University Regionals Hamilton Campus 05

1510 S. Erie, Hamilton, OH 45011

HARDEE’S – CINCINNATI, OH MSA

RENT SCHEDULE

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PERIOD

TERM

ANNUAL RENT

MONTLY RENT

INCREASE

CAP RATE

8/5/2019 - 8/31/2024

Base Term

$119,450.00

$9,954.17

-

5.75%

9/1/2024 - 8/31/2029

Base Term

$131,395.00

$10,949.58

10%

6.33%

9/1/2029 - 8/31/2034

Base Term

$144,534.50

$12,044.54

10%

6.96%

9/1/2034 - 8/31/2039

Base Term

$158,987.95

$13,249.00

10%

7.65%

9/1/2039 - 8/31/2044

1st Option

$174,886.75

$14,573.90

10%

8.42%

9/1/2044 - 8/31/2049

2nd Option

$192,375.42

$16,031.28

10%

9.26%

9/1/2049 - 8/31/2054

3rd Option

$211,612.96

$17,634.41

10%

10.19%

9/1/2054 - 8/31/2059

4th Option

$232,774.26

$19,397.85

10%

11.21%

9/1/2059 - 8/31/2064

5th Option

$256,051.68

$21,337.64

10%

12.33%

9/1/2064 - 8/31/2069

6th Option

$281,656.85

$23,471.40

10%

13.56%

9/1/2069 - 8/31/2074

7th Option

$309,822.54

$25,818.54

10%

14.92%

9/1/2074 - 8/31/2079

8th Option

$340,804.79

$28,400.40

10%

16.41%

9/1/2079 - 8/31/2084

9th Option

$374,885.27

$31,240.44

10%

18.05%

9/1/2084 - 8/31/2089

10th Option

$412,373.80

$34,364.48

10%

19.85%

1510 S. Erie, Hamilton, OH 45011

HARDEE’S – CINCINNATI, OH MSA

RETAIL AERIAL

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1510 S. Erie, Hamilton, OH 45011

HARDEE’S – CINCINNATI, OH MSA

RETAIL AERIAL

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1510 S. Erie, Hamilton, OH 45011

HARDEE’S – CINCINNATI, OH MSA

AERIAL

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1510 S. Erie, Hamilton, OH 45011

HARDEE’S – CINCINNATI, OH MSA

SITE PLAN

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1510 S. Erie, Hamilton, OH 45011

HARDEE’S – CINCINNATI, OH MSA

ABOUT THE BRAND

Hardee’s is an American quick service restaurant with locations primarily in the Southern and Midwestern United States, serving burgers, milkshakes, and breakfast among other fast food products.

Established in North Carolina in 1960, Hardee’s was acquired in 1997 by CKE Restaurants Holdings, Inc., the parent company of Carl’s Jr., for $327 million. The acquisition resulted in a combined total of more than 3,300 Carl’s Jr. and Hardee’s locations in the U.S. and more than 28 countries and a merging of the two brands.

Sustainable Future Hardee’s recently announced it will be partnering with Beyond Meat as one of the first U.S. quickservice restaurants to offer plant-based breakfast, lunch, and dinner options. They hope to make plant-based options accessible in more and more communities as they move toward a better-foryou, more sustainable future.

Headquarters Franklin, TN

Website www.Hardees.com

CKE Credit Rating B-

Locations 1,932

About Roark Capital Group In November 2013, Roark Capital Group (RCG), an Atlanta based private equity firm, acquired CKE Restaurant Holdings for $1.65-1.75 billion. Since inception, affiliates of Roark have acquired 74 franchise/multi-unit brands which generate approximately $37 billion in system revenues from 36,000 locations located in 50 states and 81 countries. Their largest sector, food and restaurants, encompasses 25 investments in brands such as: Inspire Brands (the owner of Arby’s, Buffalo Wild Wings, and Sonic), CKE Restaurants (the owner of Carl’s Jr. and Hardee’s), Corner Bakery, Culver’s, FOCUS Brands (the owner of Auntie Anne’s Pretzels, Cinnabon and Jamba Juice) Jimmy John’s, Miller’s Ale House, Naf Naf Middle Eastern Grill, and Wingstop.

StarCorp, LLC, the entity behind the lease, is one of the largest and fastest growing franchisee’s in the system. They currently operate more than 135+ Hardee’s in AZ, TX and the Midwest.

RCG Headquarters Atlanta, GA

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System Revenue $37 Billion

# of Franchise Brands 74 Brands

Locations 36,000

1510 S. Erie, Hamilton, OH 45011

HARDEE’S – CINCINNATI, OH MSA

LOCATION OVERVIEW

Hamilton, OH Located on the Great Miami River in the heart of the Cincinnati-Dayton metroplex, Hamilton is the second largest city in the Greater Cincinnati area with approximately 63,000 residents. Home of Miami University Regionals Hamilton Campus and the County Seat of Butler County, Hamilton is the area center for government, finance and industry. Known for its unparalleled art, cultural and recreational activities, Hamilton is continually expanding its quality of life offerings.

The City of Hamilton, the County Seat of Butler County, is an important regional center of business, industry, culture, and government. Located in Southwest Ohio, the City of Hamilton is centrally located between the Cincinnati and Dayton metropolitan areas. With big city amenities and smalltown charm, Hamilton continues to retain the character of the city’s past while sharpening its focus on a bright, happy future.

Hamilton, OH

Cincinnati MSA The Cincinnati-Middleton Metropolitan Statistical Area (MSA) comprises fifteen counties in three states, including five counties in Ohio, seven counties in Kentucky, and three counties in Indiana. In 2017, Cincinnati, OH-KY-IN had a population of 2.18M people with a median age of 37.7 and a median household income of $61,653. It employs over 1.9 million people.

University of Cincinnati The University of Cincinnati is the region’s largest public institution of higher learning. It is ranked among the top 100 public universities by U.S. News & World Report and is a national leader in providing rigorous, relevant, student-centered learning.

Home to 8 Fortune 500 Firms The companies headquartered in Greater Cincinnati include: AK Steel, American Financial. Cintas, Fifth Third Bancorp, Macy’s, Inc., Procter & Gamble Co., The Kroger Company, Western & Southern.

Business Friendly KPMG named Cincinnati as the least costly location to do business among all large U.S. cities.

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1510 S. Erie, Hamilton, OH 45011

HARDEE’S – CINCINNATI, OH MSA

LOCATION OVERVIEW

1. Miami University Regionals 1601 University Blvd, Hamilton, OH 45011 1 MILE FROM SUBJECT PROPERTY

2. Pyramid Hill 1763 Hamilton Cleves Rd, Hamilton, OH 45013 4 MILES FROM SUBJECT PROPERTY

3. RiversEdge Amphitheater 116 Dayton St, Hamilton, OH 45011 2 MILES FROM SUBJECT PROPERTY

4. Vora Technology Park 101 Knightsbridge Dr, Hamilton, OH 45011 1 MILE FROM SUBJECT PROPERTY

5. Bridgewater Falls 3385 Princeton Rd, Hamilton, OH 45011 4 MILES FROM SUBJECT PROPERTY

6. Fitton Center for Creative Arts 101 S. Monument Ave, Hamilton, OH 45011 2 MILES FROM SUBJECT PROPERTY

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1510 S. Erie, Hamilton, OH 45011

HARDEE’S – CINCINNATI, OH MSA

LOCATION OVERVIEW

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Miami University REGIONALS

Pyramid Hills

RiversEdge Amphitheater

Miami University Regionals Hamilton Campus offers bachelors degrees to over 3,000 enrolled students.

Pyramid Hiils is a sizable outdoor museum showcasing a variety of sculptures in meadow, forest & garden settings.

RiversEdge Amphitheater hosts events throughout the year. It is home to the very popular Summer Concert Series.

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Vora Technology Park

Bridgewater Falls

Fitton Center for Creative Arts

The state-of-the art facility sits on 55 acres featuring beautiful, award-winning landscaping and several walking trails.

Bridgewater Falls offers guests a unique shopping experience with more than 30 shopping destinations.

This center is a multidisciplinary arts center with music, dance & theater performances, plus art exhibitions.

1510 S. Erie, Hamilton, OH 45011

HARDEE’S – CINCINNATI, OH MSA

LOCATION OVERVIEW

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University of Cincinnati

Cincinnati Bengals

Cincinnati Reds BasebalL

The University of Cincinnati is a public research university in Cincinnati, Ohio and was founded in 1819.

The Cincinnati Bengals are a professional American football franchise based in Cincinnati, Ohio.

As baseball’s first professional franchise, the Reds are a household name in the Cincinnati community.

Cincinnati Zoo & Gardens

Cincinnati Museum Center

Cincinnati Music Hall

A visit to the zoo is a full day, with rides, a 4D theater, animal encounters and shows.

The center is a Cincinnati icon and features three museums at its one location at Union Station.

The prestigious Music Hall is in Cincinnati’s neighborhood at Washington Park, with a stunning presence.

1510 S. Erie, Hamilton, OH 45011

HARDEE’S – CINCINNATI, OH MSA

DEMOGRAPHICS

POPULATION

1-Mile

3-Mile

5-Mile

2025 Projection

15,360

67,261

139,686

2020 Estimate

15,047

65,796

137,166

14,791

64,143

136,574

Growth ‘20 - ‘25

2.08%

2.23%

1.84%

Growth ‘10 - ‘20

1.73%

2.58%

0.43%

1-Mile

3-Mile

5-Mile

2025 Projection

5,393

25,612

53,132

2020 Estimate

5,279

25,047

52,197

5,191

24,469

52,280

Growth ‘20 - ‘25

2.16%

2.26%

1.79%

Growth ‘10 - ‘20

1.70%

2.36%

-0.16%

Average Income

$43,518

$59,650

$75,464

Median Income

$35,248

$45,933

$60,632

2010 Census

HOUSEHOLDS

2010 Census

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1510 S. Erie, Hamilton, OH 45011

JAMES CAPITAL ADVISORS, INC.

DISCLAIMER

The information contained in this Marketing Brochure has been obtained from sources believed to be reliable, but the accuracy or completeness of the information contained therein cannot be guaranteed. James Capital Advisors, Inc. and Brian Brockman (“Broker”) has not, and will not, verify any of this information, nor has Broker conducted, nor will it conduct, any investigation regarding these matters. Broker makes no representations, guarantees, or warranties of any nature about the accuracy or completeness of any information provided. The information provided in this brochure is in no way a substitute for a thorough due diligence investigation by Buyer. Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to income and expenses for this property nor the future financial performance of the property. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties as to the size and square footage of the property, the presence of any contaminating substances at the property, the physical condition of the property or compliance with any State, Local or Federal regulations. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to the financial condition or future financial condition of any tenants, nor any future plans or intentions of tenants with regard to the continued occupancy of the property. All parties are aware that Broker has no affirmative obligation to conduct a due diligence examination of the property for any Buyer. Any and all projections or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. Therefore, Broker assumes no legal responsibility for accuracy or completeness of this information, and expressly disclaims all representations, guarantees, or warranties related thereto.

The value of the property to any Buyer depends on numerous factors that must be evaluated by Buyer and Buyer’s legal, tax, construction, and financial advisors. Buyer and Buyer’s advisors should conduct a thorough, independent investigation of the property to determine its suitability for Buyer’s intended usage. This investment, as with all real estate investments, carries a substantial risk. As such, Buyer and Buyer’s legal and financial advisors are strongly advised to request and review all legal and financial documentations related to the property and tenants.

A tenant’s past performance is not a guarantee of future performance. The lease rate stated for some properties may be based on a tenant’s projected sales with little or no record of actual performance or comparable rents for the area in question. Returns are in no way guaranteed. Tenants may fail to pay the rent or property taxes or any other tenant obligations under the terms of the lease or may default under the terms of such lease. Regardless of tenant’s history of performance, and/or any lease guarantors and/or guarantees, Buyer is responsible for conducting Buyer’s own investigation of all matters related to any and all tenants and lease agreements. Broker is not, in any way, responsible for the performance of any tenant or for any breach or default by any tenant of any terms of any lease agreement related to the property.

Further, Buyer is responsible for conducting Buyer’s own independent investigation of all matters related to the value of the property, including, but not limited to, the value of any long-term leases. Buyer must carefully evaluate the possibility of tenants vacating the property or breaching their leases and the likelihood and financial impact of being required to find a replacement tenant if the current tenant should default and/or abandon the property. Buyer must also evaluate Buyer’s legal ability to make alternate use of the property in the event of a tenant abandonment of the property.

CONFIDENTIALITY This Marketing Brochure and the information contained within, is propriety and strictly confidential. It is intended to be used only by the party receiving it from Broker. It should not be made available to any other person or entity without the express written consent of Broker.

RELEASE This Marketing Brochure has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless Broker from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property. In no event shall James Capital Advisors, Inc. or Broker be liable to any party for any direct, indirect, special, incidental, or consequential damages of any kind whatsoever arising out of the use of this Marketing Brochure or any information contained herein.

NON-ENDORSEMENT Broker is not affiliated with, endorsed by or sponsored in any way by any tenant or lessee identified in this Marketing Brochure. The presence of any entity’s logo or name is not intended in any way to indicate affiliation, sponsorship or endorsement by said entity of Broker.

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FOR INQUIRIES

PLEASE CONTACT Richard Brehaut

Brian Brockman

(424) 325-2608

(513) 898-1551

Vice President, Net Lease

richard@jamescapitaladvisors.com CA RE Lic. 01934760

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Broker of Record

brian@bangrealty.com OH RE Lic #: BRKP.2009000214 Bang Realty, Inc Cincinnati, OH CORP. Lic #: REC.2009002663

© COPYRIGHT 2019 JAMES CAPITAL ADVISORS, INC.