The Definitive Guide to IHOP Rents

RETAIL

The definitive

Guide to rents IHOP

Blake Wagenseller A S S O C I AT E

connor olandt VICE PRESIDENT

DIRECT (949) 209-8963 MOBILE (858) 449-4864 blake.wagenseller@matthews.com

DIRECT (949) 432-4504 MOBILE (818) 618-4522 connor.olandt@matthews.com

License No. 02146707 (CA)

License No. 01985082 (CA)

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What’s in

This guide?

Since its inception, this guide has been the industry standard for aiding investors in understanding the position of their assets in the overall market.

Utilized by institutional and professional investors, developers, and private clients, this guide provides the data and resources necessary to make informed investment decisions effectively as you navigate the IHOP property market.

Whether you’re the owner of a single IHOP property or a large portfolio, The Definitive Guide to IHOP Rents will provide you with immediate actionable information to:

› Protect your cash flow › Increase your leverage as an owner › Secure your wealth Ultimately, you will thoroughly understand where your IHOP investment stands and how to plan for the future.

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Table of

Contents 04

Meet Matthews™

06

IHOP at a Glance

07

Rent Distribution

08

Understanding the Big Picture

09

Sample Rents

Disclaimer: This information has been produced by Matthews Real Estate Investment Services™ solely for information purposes and the information contained has been obtained from public sources believed to be reliable. While we do not doubt their accuracy, we have not verified such information. No guarantee, warranty or representation, expressed or implied, is made as to the accuracy or completeness of any information contained and Matthews REIS™ shall not be liable to any reader or third party in any way. This information is not intended to be a complete description of the markets or developments to which it refers. All rights to the material are reserved and can-not be reproduced without prior written consent of Matthews Real Estate Investment Services™.

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Meet Matthews

™

Who We are

Proven track record

Since 2015, Matthews™ has experienced unprecedented growth adding over 600 real estate professionals to serve clients. Founded in El Segundo, CA, and strategically positioned in 20+ offices across the United States, Matthews™ continues to expand into new markets.

TR ANSACTIONS

Matthews Real Estate Investment Services™, a commercial real estate investment services and technology firm, holds recognition as an industry leader in investment sales, leasing, and debt and structured finance. Matthews™ delivers superior results through the firm’s industry revered work ethic, unique culture, collaboration, and advanced technology.

Our professional team of agents have many years of experience with representing the top institutions, developers, and private clients in commercial real estate. We hire the best and provide them with top of the line support, systems, and materials with the goal of exceeding expectations

18,935

What we do

600+

AGENTS & EMPLOYEES

1,000,000+

CLIENT BUYER DATABASE

$51.7 Billion IN DE ALS CLOSED

Full-Service Real Estate Solutions

Matthews™ redefines what clients expect by accelerating the evolution of how the commercial real estate industry services clients through technology.

By leveraging technology and industry-leading resources, Matthews™ is committed to growing and preserving client wealth and adding value to their investment strategy.

Our centralized client services foster specialization and collaboration across all divisions to provide an array of commercial real estate solutions for our clients.

INVESTMENT SALES › Net Lease Retail › Office › Shopping Centers › Self-Storage › Multifamily › Hospitality › Industrial › Auction Services › Healthcare

When you hire Matthews™, you have the power of investment professionals strategically positioned across the country to sell your deal. We have access to the largest database of capital from private and institutional investors. With our collaborative culture, agents from across the country work together to source buyers through the Matthews™ network.

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CAPITAL MARKETS › Debt & Structured Finance › Equity LE ASING › Landlord Representation › Tenant Representation

Your Matthews

™

Representative BLAKE WAGENSELLER A S S O C I AT E

DIRECT +1 (949) 209-8963 MOBILE +1 (858) 449-4864 blake.wagenseller@matthews.com License No. 02146707 (CA) Blake Wagenseller specializes in the acquisition and disposition of net-leased properties nationwide with an emphasis on casual dining and quickservice restaurants (QSR) nationwide. Blake has played a critical role in establishing one of the largest market shares nationally in the restaurant sector.

His commitment to putting his client first and creating value assures him long-lasting relationships throughout the industry and certainty of execution.

EDUCATION

B.A., Business Administration, Concentration in Marketing California Polytechnic State University

CONNOR OLANDT VICE PRESIDENT

DIRECT +1 (949) 432-4504 MOBILE +1 (818) 618-4522 connor.olandt@matthews.com License No. 01985082 (CA) Connor Olandt is a retail investment expert specializing in representing clients in the disposition and acquisition of net-leased properties across the United States, with a specific emphasis on restaurant properties. Connor has successfully represented both institutional and private clients giving unparalleled service and market-leading advisory. Connor’s passion for real estate, experience, and extensive knowledge of the market help him provide the most value for his clients.

EDUCATION

B.S., Business, Emphasis in Real Estate and Finance University of Southern California

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ihop At A Glance COMPANY DESCRIPTION: Since 1958, IHOP has been the place where people connect over breakfast, enjoy a study break, grab a bite before or after sporting events, and so much more. The IHOP family restaurant chain continues to serve its world-famous pancakes and a wide variety of breakfast, lunch, and dinner items loved by people of all ages. The casual dining restaurant offers pancakes, omelets, French toast and waffles, crepes, burgers, sandwiches, soups, salads, hash brown sticks, 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 whollyowned 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 overhalf 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 and expertise in brand revitalization and franchising, have been the basis of their financial success in recent years.

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rent distribution $156,901.00

$102,335.35

$211,467.57

$47,769.24

$266,033.68

ZONE 1

ZONE 2

ZONE 3

ZONE 4

ZONE 5

ZONE 6

Less asking rent than 2% of all IHOP properties.

Less asking rent than 2% - 16% of all IHOP properties.

Less asking rent than 16% - 50% of all IHOP properties.

Higher asking rent than 50% - 84% of all IHOP properties.

Higher asking rent than 84% - 98% of all IHOP properties.

Higher asking rent than 98% of all IHOP properties.

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Occupancy Cost (Rent)

Occupancy cost is simply defined as all costs related to a tenant occupying a space, including rent, taxes, insurance, maintenance, etc. One of the largest expenses a retailer will incur is the rent paid by the tenant to the landlord. Low rent is advantageous for you as a landlord because it keeps the operator’s expenses low, allowing for greater profitability at a location. When your tenant is profitable, they continue to operate out of the space preserving your equity in your investment. On the other hand, high rent attaches additional risk as there is higher probability of store failure and termination of the lease.

Understanding

The Big Picture

Analyzing Your IHOP After reviewing the graph on the previous page, one is able to see that the average rent for a IHOP is $156,901. By using this piece of data and the rent distribution bell curve, you are able to judge the overall health of your store.

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sample rents STATE

CIT Y

NOI

TX LA NM MO FL FL MN CA NV OR TX PA NY TX TX IL FL FL TX TX FL TX KS CA VA MD OK WA CA CA NV GA CO NC GA IL CA KY TX GA

Dallas Harvey Albuquerque Saint Joseph Punta Gorda Orlando Minneapolis Yuba City Las Vegas Portland Fort Worth Pittsburgh Williston Park Spring Cleburne Morris Saint Petersburg Vero Beach Victoria Kyle Pensacola Plainview Salina Palmdale Fredericksburg Gaithersburg Stillwater Mount Vernon San Jose Palmdale Las Vegas Hinesville Superior Lumberton Gainesville Lansing Fairfield Paducah Plainview Savannah

$178,750 $102,455 $223,560 $160,000 $68,200 $99,278 $69,000 $150,000 $86,178 $145,920 $157,493 $260,110 $248,873 $272,000 $148,063 $61,563 $81,608 $105,040 $175,010 $126,880 $148,500 $179,970 $96,000 $113,130 $150,750 $111,433 $197,006 $161,550 $155,310 $130,059 $91,993 $245,210 $82,451 $180,120 $167,880 $191,750 $96,120 $51,200 $205,686 $119,394

YR BUILT 1997 2002 2002 2009 1978 1977 2003 1984 1980 1997 2010 1969 1995 2014 1998 1976 1977 1996 2012 2022 2006 1995 2002 1997 1976 2000 2012 2008 2002 1995 2018 2001 2013 1999 1986 2020 1988 2006 1982

RPSF $33.51 $23.09 $56.54 $31.56 $20.49 $31.57 $28.00 $37.82 $17.06 $25.42 $33.40 $50.02 $102.76 $47.91 $38.77 $12.29 $31.12 $34.39 $37.64 $25.38 $39.60 $36.04 $18.70 $28.13 $26.45 $24.34 $48.87 $33.27 $25.18 $32.34 $22.73 $35.54 $21.79 $35.35 $43.95 $39.06 $23.91 $12.05 $41.19 $21.84

CAP R ATE 7.15% 6.61% 8.28% 6.25% 5.50% 5.25% 6.00% 5.00% 5.50% 6.08% 5.75% 7.03% 6.00% 6.80% 5.75% 5.85% 4.00% 5.20% 5.50% 5.20% 4.75% 5.25% 8.00% 4.50% 4.50% 7.00% 5.48% 4.50% 5.99% 6.71% 4.47% 5.65% 6.27% 6.32% 6.00% 6.50% 4.32% 4.00% 7.02% 6.50%

SALE PRICE

$2,500,000 $1,550,000 $2,700,000 $2,560,000 $1,240,000 $1,891,000 $1,150,000 $3,000,000 $1,566,872 $2,400,000 $2,739,000 $3,700,000 $4,147,883 $4,000,000 $2,575,000 $1,052,367 $2,040,200 $2,020,000 $3,182,000 $2,440,000 $3,126,316 $3,428,000 $1,200,000 $2,514,000 $3,350,000 $1,591,897 $3,595,000 $3,590,000 $2,592,816 $1,938,291 $2,058,000 $4,340,000 $1,315,000 $2,850,000 $2,798,000 $2,950,000 $2,225,000 $1,280,000 $2,930,000 $1,836,830

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STATE

CIT Y

NOI

SC OK MI FL CA FL MS WI OH SC FL TX TN GA FL SC OH TX IN IA ID AR NC SC CA CA IN CA FL NV CA TX NC FL TN GA FL CA IL FL

Columbia Oklahoma City Grandville Kissimmee Santa Ana Brooksville Tupelo Plover Lancaster Orangeburg Fort Lauderdale Kingwood Memphis Kingsland Hialeah Bluffton Grove City Hillsboro Elkhart Davenport Idaho Falls Bryant High Point Florence Los Angeles San Jose Schererville Folsom Oakland Park Las Vegas Escondido Euless Winston-Salem Cocoa Beach Memphis Evans Saint Petersburg Camarillo Quincy Pace

$159,978 $233,048 $210,300 $299,375 $116,390 $128,000 $195,000 $76,475 $145,110 $180,000 $82,500 $136,088 $220,056 $107,478 $79,980 $245,350 $112,035 $128,960 $151,450 $93,107 $119,910 $117,306 $101,250 $67,197 $89,175 $240,450 $163,068 $159,900 $135,068 $262,580 $91,980 $212,088 $261,360 $119,988 $206,500 $178,750 $152,012 $86,352 $137,986 $120,000

YR BUILT 2014 2007 2002 1986 2002 1991 2000 2007 1998 2005 1965 2020 1999 2008 1998 2004 1999 1999 2004 2002 2000 2009 1997 1979 1961 2002 2019 2008 1972 2019 2008 2006 1974 1999 2006 2006 1988 2007 2019

RPSF $37.92 $57.13 $53.92 $47.81 $28.58 $21.06 $57.49 $14.43 $26.18 $37.50 $31.68 $36.78 $46.43 $23.49 $17.68 $50.02 $16.87 $25.57 $33.37 $23.69 $29.12 $22.98 $25.31 $20.05 $54.38 $52.27 $23.46 $36.74 $46.77 $55.87 $20.86 $43.15 $52.51 $45.45 $43.57 $39.29 $24.32 $22.47 $27.21 $29.38

CAP R ATE 4.45% 5.75% 7.01% 4.79% 4.12% 5.20% 7.50% 6.65% 6.91% 7.50% 5.00% 5.73% 6.35% 6.25% 3.44% 7.01% 5.82% 8.06% 6.50% 4.85% 5.71% 6.86% 6.75% 6.50% 4.10% 4.58% 5.35% 5.33% 7.83% 6.91% 4.38% 6.00% 7.26% 5.40% 7.00% 6.50% 7.12% 5.14% 6.35% 5.50%

SALE PRICE

$3,595,000 $4,053,000 $3,000,000 $6,250,000 $2,825,000 $2,461,538 $2,600,000 $1,150,000 $2,100,000 $2,400,000 $1,650,000 $2,375,000 $3,465,450 $1,719,650 $2,325,000 $3,500,000 $1,925,000 $1,600,000 $2,330,000 $1,919,730 $2,100,000 $1,710,000 $1,500,000 $1,033,796 $2,175,000 $5,250,000 $3,048,000 $3,000,000 $1,725,000 $3,800,000 $2,100,000 $3,534,800 $3,600,000 $2,222,000 $2,950,000 $2,750,000 $2,135,000 $1,680,000 $2,173,000 $2,181,818

sample rents STATE

CIT Y

NOI

TX IL GA AZ FL PA AZ NC FL TN LA GA SC MO VA MD GA TX AZ OK TX TX AR NV CO MI NY FL GA AZ TX GA GA UT TX OK

Houston Bolingbrook Suwanee Phoenix Naples Blue Bell Phoenix Wilmington Orlando Maryville New Orleans Thomasville Lexington Saint Joseph King George Bowie Hinesville Denton Phoenix Shawnee Tyler Houston Bryant Henderson Aurora Monroe Hicksville Deland Savannah Maricopa Brownsville Lilburn Douglasville Payson Irving Oklahoma City

$242,060 $155,928 $120,551 $209,950 $75,937 $87,809 $204,125 $162,438 $103,803 $148,000 $121,379 $98,857 $256,750 $214,625 $90,038 $227,205 $253,000 $162,129 $154,866 $166,540 $136,127 $175,150 $120,020 $116,435 $86,498 $92,727 $224,826 $119,900 $181,365 $154,755 $186,150 $181,575 $173,739 $143,925 $181,739 $222,890

YR BUILT 1996 2015 2007 2012 1994 1995 2009 1996 2015 1997 2002 2014 2007 2009 2018 1970 2018 2019 2018 2001 2013 2019 2009 2004 2002 1972 1970 1977 1990 2019 1999 2008 1998 2018 2002 2000

RPSF $46.91 $31.19 $25.98 $43.93 $18.08 $22.12 $42.34 $29.87 $22.50 $29.60 $23.61 $24.09 $51.64 $42.33 $19.63 $36.71 $36.67 $35.09 $31.90 $39.80 $30.49 $37.90 $23.51 $23.81 $21.51 $18.89 $89.15 $40.84 $33.00 $32.46 $36.19 $35.21 $34.89 $31.65 $40.88 $56.92

CAP R ATE 5.32% 5.84% 6.23% 4.94% 5.80% 6.80% 5.75% 6.25% 5.75% 6.25% 5.65% 5.80% 7.90% 8.50% 5.25% 6.35% 6.50% 5.61% 4.87% 7.57% 6.01% 5.65% 7.06% 5.50% 6.10% 6.00% 5.79% 5.45% 6.42% 4.90% 8.76% 6.75% 6.70% 6.06% 6.05% 7.19%

SALE PRICE

$4,550,000 $2,670,000 $1,935,000 $4,250,000 $1,309,258 $1,291,312 $3,550,000 $2,599,000 $1,805,268 $2,368,000 $2,148,293 $1,704,431 $3,250,000 $2,525,000 $1,715,000 $3,578,037 $3,892,307 $2,890,000 $3,180,000 $2,200,000 $2,265,000 $3,100,000 $1,700,000 $2,117,000 $1,418,000 $1,545,455 $3,883,000 $2,200,000 $2,825,000 $3,158,265 $2,125,000 $2,690,000 $2,593,125 $2,375,000 $3,003,950 $3,100,000

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STATE

CIT Y

NOI

MI FL GA PA TX NC GA NC IL VA VA SC MO MT FL TX AR TX NM KS TX CA FL IN TX TX CO IA TX NV TX TX TX NY CA

Flint Jacksonville Atlanta Philadelphia Southlake Asheville Suwanee Jacksonville Springfield Richmond Culpeper Spartanburg North Kansas City Kalispell Fort Lauderdale Alice Benton Kingsville Hobbs Topeka Spring Turlock Pensacola Muncie Port Arthur Lindale Pueblo Coralville Houston Reno Dallas Hurst Terrell Bronx South Lake Tahoe

$133,313 $208,811 $217,718 $127,000 $173,550 $204,680 $116,640 $173,870 $125,440 $170,775 $100,213 $160,116 $160,000 $165,804 $171,732 $192,010 $239,590 $160,000 $287,438 $151,203 $249,287 $62,050 $170,000 $205,700 $184,535 $145,985 $173,280 $78,255 $183,927 $192,072 $133,200 $200,000 $192,130 $252,000 $134,925

YR BUILT 2016 2007 1970 1950 2000 1969 2007 1999 2016 2011 2006 2018 2005 2004 1972 2015 2006 2007 2006 2017 1995 1995 2023 2002 1997 2013 1999 2007 2018 1999 1970 2002 2015 1998 1970

RPSF $25.77 $46.80 $93.20 $19.72 $33.72 $45.62 $25.13 $34.77 $24.60 $38.21 $26.34 $35.27 $34.35 $34.03 $59.46 $44.43 $47.37 $30.99 $63.88 $31.32 $43.91 $13.22 $45.33 $43.83 $36.54 $35.03 $42.85 $15.43 $39.79 $47.85 $52.73 $51.28 $54.46 $67.33 $41.99

CAP R ATE 6.75% 7.10% 6.09% 6.25% 6.50% 6.88% 6.75% 6.09% 7.84% 6.21% 7.85% 6.13% 6.00% 6.01% 5.00% 7.00% 6.50% 7.00% 8.75% 5.75% 5.61% 3.65% 5.00% 6.25% 6.50% 6.02% 6.08% 6.15% 5.75% 7.00% 6.50% 4.75% 7.00% 4.10% 5.00%

SALE PRICE

$1,975,000 $2,941,000 $3,575,000 $2,032,000 $2,670,000 $2,975,000 $1,728,000 $2,855,000 $1,600,000 $2,750,000 $1,276,603 $2,612,000 $2,666,666 $2,758,800 $3,434,643 $2,743,000 $3,686,000 $2,285,714 $3,285,000 $2,629,617 $4,443,618 $1,700,000 $3,400,000 $3,291,200 $2,839,000 $2,425,000 $2,850,000 $1,272,439 $3,198,730 $2,743,885 $2,049,230 $4,210,526 $2,744,714 $6,146,341 $2,698,500

RETAIL

The definitive

Guide to rents IHOP

Blake Wagenseller A S S O C I AT E

connor olandt VICE PRESIDENT

DIRECT (949) 209-8963 MOBILE (858) 449-4864 blake.wagenseller@matthews.com

DIRECT (949) 432-4504 MOBILE (818) 618-4522 connor.olandt@matthews.com

License No. 02146707 (CA)

License No. 01985082 (CA)

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