Hardee's - Middletown, OH

HARDEE’S – DAYTON, OH MSA

JAMES CAPITAL ADVISORS, INC.

JAMES CAPITAL ADVISORS

MARKETING PACKAGE

500 S. Breiel Blvd Middletown, OH 45044

CONTENTS

PAGE

Investment Summary

03

Lease Summary

04

Investment Highlights

05

Rent Schedule

06

Retail Aerials

07

Site Plan

09

About the Brand

10

Location Overview

11

CONTACT INFORMATION

Richard Brehaut

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

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HARDEE’S – DAYTON, OH MSA

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

Hardee’s 500 S. Breiel Blvd Middletown OH 45044 3,068 SF

$2.3M 5.75% 5.75% $135,450 $135K $2,355,000 PURCHASE PRICE

CAP RATE

NET OPERATING INCOME

0.86 AC

Price / SF

$767.60

2017

Rent / SF

$44..15

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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500 S. Breiel Blvd, Middletown, OH 45044

HARDEE’S – DAYTON, OH MSA

LEASE SUMMARY Lease Type

Type of Ownership

Absolute Net (NNN) 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

19.84 Years

Increases Options

10% Every Five Years

Ownership Number of Locations

Private 135+

Ten (10), 5-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.

Dayton MSA Dayton is the sixth-largest city in the state of Ohio and the county seat of Montgomery County. The 2018 U.S. census estimate put the city population at 140,640, while Greater Dayton was estimated to be at 803,416 residents.

Middletown Shopping Center The subject property is across the street from Middletown Shopping Center, a 155K SF Family Dollar anchored shopping center with a healthy mix of national and local tenants including CareFirst Urgent Care, Burger King and O’Reilly’s.

Healthy Mix of Surrounding National Retailers Major national retailers in the immediate trade area include Burger King, Little Caesar’s, Walgreens, Captain D’s, CVS, Dunkin Donut’s, McDonald’s, Sally Beauty and Boost Mobile.

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500 S. Breiel Blvd, Middletown, OH 45044

HARDEE’S – DAYTON, OH MSA

INVESTMENT Highlights Five Minutes West of Towne Mall Towne Mall is a 596,666 SF town center that consists of national retailers including Kroger, Planet Fitness, Petco, Meijer, Dollar Tree, Burlington, Chipotle, Buffalo Wild Wings, Staples, ALDI, Sonic Drive-In and Golden Corral Buffet & Grill.

Strong Demographics There are 50K people within three miles and 86K people within five miles of the subject property.

Excellent Site Level Visibility The subject property is located just north of the intersection of Grand Ave and S. Breiel Blvd, which has daily traffic counts exceeding 24,019 vehicles per day.

Thriving Daytime Population Within 3 miles of the subject property are multiple large employers and or students including AK Steel, Atrium Medical Center and Miami University Middletown bringing close to 8,000 daytime visitors.

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500 S. Breiel Blvd, Middletown, OH 45044

HARDEE’S – DAYTON, OH MSA

RENT SCHEDULE

06

PERIOD

TERM

ANNUAL RENT

MONTLY RENT

INCREASE

CAP RATE

8/5/2019 - 8/31/2024

Base Term

$135,450.00

$11,287.50

-

5.75%

9/1/2024 - 8/31/2029

Base Term

$148,995.00

$12,416.25

10%

6.33%

9/1/2029 - 8/31/2034

Base Term

$163,894.50

$13,657.88

10%

6.96%

9/1/2034 - 8/31/2039

Base Term

$180,283.95

$15,023.66

10%

7.66%

9/1/2039 - 8/31/2044

1st Option

$198,312.35

$16,526.03

10%

8.42%

9/1/2044 - 8/31/2049

2nd Option

$218,143.58

$18,178.63

10%

9.26%

9/1/2049 - 8/31/2054

3rd Option

$239,957.94

$19,996.49

10%

10.19%

9/1/2054 - 8/31/2059

4th Option

$263,953.73

$21,996.14

10%

11.21%

9/1/2059 - 8/31/2064

5th Option

$290,349.10

$24,195.76

10%

12.33%

9/1/2064 - 8/31/2069

6th Option

$319,384.01

$26,615.33

10%

13.56%

9/1/2069 - 8/31/2074

7th Option

$351,322.42

$29,276.87

10%

14.92%

9/1/2074 - 8/31/2079

8th Option

$386,454.66

$32,204.55

10%

16.41%

9/1/2079 - 8/31/2084

9th Option

$425,100.12

$35,425.01

10%

18.05%

9/1/2084 - 8/31/2089

10th Option

$467,610.14

$38,967.51

10%

19.86%

500 S. Breiel Blvd, Middletown, OH 45044

HARDEE’S – DAYTON, OH MSA

RETAIL AERIAL

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500 S. Breiel Blvd, Middletown, OH 45044

HARDEE’S – DAYTON, OH MSA

RETAIL AERIAL

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500 S. Breiel Blvd, Middletown, OH 45044

HARDEE’S – DAYTON, OH MSA

SITE PLAN

09

500 S. Breiel Blvd, Middletown, OH 45044

HARDEE’S – DAYTON, 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

500 S. Breiel Blvd, Middletown, OH 45044

HARDEE’S – DAYTON, OH MSA

LOCATION OVERVIEW Middletown, OH

The City of Middletown is in the heart of Ohio’s Southwestern Metropolitan region. Middletown is 25 miles south of Dayton, and is 30 miles north of Cincinnati. With a tight-knit community and a strong manufacturing history, Middletown, Ohio is the perfect place to live, play, work, and grow. Middletown boasts a booming economy, with the recent arrival of the AK Steel Research & Development Center and the Middletown Energy Center.

Middletown is also home to the annual Ohio Balloon Challenge, a hot-air balloon competition that draws competitors from all over the world. Located just off of Ohio’s Interstate 75 is the Middletown Regional Airport, making travel around the region even easier for visitors, residents, and business people. Middletown is home to a new middle school and newly-renovated high school, and has a fine network of elementary schools. There is also a wide variety of higher-education choices: Cincinnati State, Miami University Middletown, Butler Tech, the Warren County Career Center, and the Greentree Health Sciences Academy all call Middletown home.

Dayton, OH

Dayton MSA

Dayton is the sixth-largest city in Ohio and the county seat of Montgomery County. The 2018 U.S. census estimate put the city population at 140,640, while Greater Dayton was estimated to be at 803,416 residents. This makes Dayton the fourth-largest metropolitan area in Ohio and 63rd in the United States.

University of Dayton

University of Dayton the second-largest private university in Ohio that consists of 388 acres with 12,200 students.

#3 City in the Nation for Excellence in Healthcare

Hospitals in the Greater Dayton area have an estimated combined employment of nearly 32,000 and a yearly economic impact of $6.8 billion. In 2011, Dayton was rated the #3 city in the nation for excellence in healthcare.

Wright – Patterson Air Force Base Boost Employment

Wright-Patterson Air Force Base is the largest employer in Dayton - It employs 27,500 people, boasts an annual payroll of $2.23 billion and indirectly creates an estimated 34,560 additional jobs.

Dayton Hosts the NCAA at The University of Dayton Arena University of Dayton 11

Dayton hosts the NCAA March Madness Tournament “play in” games at the University of Dayton’s basketball arena, which has an estimated economic impact of $4.5M annually.

500 S. Breiel Blvd, Middletown, OH 45044

HARDEE’S – DAYTON, OH MSA

LOCATION OVERVIEW

1. Miami University Middletown 4200 N. University Blvd, Middletown, OH 45042 2 MILES FROM SUBJECT PROPERTY

2. Illusion Adventure Park 8762 Thomas Rd, Middletown, OH 45042 7 MILES FROM SUBJECT PROPERTY

3. Sorg Opera House 63 S. Main St, Middletown, OH 45044 3 MILES FROM SUBJECT PROPERTY

4. Miami Valley Gaming Casino 6000 OH-63, Lebanon, OH 45036 6 MILES FROM SUBJECT PROPERTY

5. Armbruster Nature Preserve 5721-5697 Autumn Dr, Middletown, OH 45042 3 MILES FROM SUBJECT PROPERTY

6. Start Skydiving 1711 Run Way, Middletown, OH 45042 4 MILES FROM SUBJECT PROPERTY

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500 S. Breiel Blvd, Middletown, OH 45044

HARDEE’S – DAYTON, OH MSA

LOCATION OVERVIEW

01 Miami University Middletown MUM is a public regional campus of Miami University located in Middletown, Ohio. It was founded in 1966.

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02 Illusion Adventure Park

The park provides themed attractions throughout the year and attracts guests from all around.

03 Sorg Opera House For over a century, the Sorg Opera House has attracted some of the country’s finest dramatic and musical acts.

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Miami Valley Gaming Casino

Armbruster nature Preserve

Start Skydiving

Miami Valley Gaming is a harness racing track and casino in Turtlecreek Township, Ohio. It opened in 2013.

The preserve is on a 5.8-acre city-owned wooded lot at the end of Autumn Drive in the Manchester Manor subdivision.

Start Skydiving is one the top five largest and fastest growing Drop-Zones in the world.

500 S. Breiel Blvd, Middletown, OH 45044

HARDEE’S – DAYTON, OH MSA

LOCATION OVERVIEW

University of Dayton The University of Dayton is a private Roman Catholic research university in Dayton, Ohio.

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Museum of the USAF

The National Museum of the United States Air Force is the largest and oldest military aviation museum in the world.

Dayton Art Institute The Dayton Art Institute is a world-class museum featuring artwork, sculpture, changing exhibits, and programs.

Museum of Discovery

Schuster Center

University of Dayton Arena

The Boonshoft Museum of Discovery is a children’s museum, science, technology center and zoo in Dayton, Ohio.

The center supports a vast ampunt of national and international performing arts groups including Broadway shows.

Home of the Flyers basketball team and the opening round of the popular “March Madness” tournament.

500 S. Breiel Blvd, Middletown, OH 45044

HARDEE’S – DAYTON, OH MSA

DEMOGRAPHICS

POPULATION

1-Mile

3-Mile

5-Mile

11,144

51,791

83,487

2020 Estimate

10,898

50,599

81,237

2010 Census

10,607

49,702

79,123

Growth ‘20 - ‘25

2.26%

2.36%

2.77%

Growth ‘10 - ‘20

2.74%

1.80%

2.67%

1-Mile

3-Mile

5-Mile

2025 Projection

4,917

21,391

33,319

2020 Estimate

4,810

20,900

32,438

2010 Census

4,709

20,571

31,734

Growth ‘20 - ‘25

2.22%

2.35%

2.72%

Growth ‘10 - ‘20

2.14%

1.60%

2.22%

Average Income

$50,697

$55,936

$62,277

Median Income

$36,255

$41,312

$47,631

2025 Projection

HOUSEHOLDS

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500 S. Breiel Blvd, Middletown, OH 45044

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.