Wendy's - Las Cruces, NM

Representative Photo

LAS CRUCES, NM

PRICING & FINANCIAL ANALYSIS

PROPERTY NAME

FINANCIAL ANALYSIS

Wendy’s 565 Walton Blvd Las Cruces, NM 88001

Offering Summary Price Cap Rate Net Operating Income Gross Leasable Area Lot Size

5.00% $165,000

PROPERTY DESCRIPTION

Year Built

$3,300,000

2000 3,018 SF

Representative Photo

0.84 Acres

Annualized Operating Data Lease Summary Lease Term

Year(s) 20 Years

Commencement

Annual

Increase

1-5

1/1/2017

$165,000

-

At Close of Escrow

6-10

1/1/2022

$177,375

7.50%

Lease Expiration

20 Years from COE

11-15

1/1/2027

$190,678

7.50%

Remaining Term

20 Years

16-20

1/1/2032

$204,979

7.50%

Option 1: 21-25

1/1/2037

$220,352

7.50%

Option 2: 26-30

1/1/2042

$236,879

7.50%

7.5% Every 5 Years

Option 3: 31-35

1/1/2047

$254,645

7.50%

4 x 5 Year

Option 1: 36-40

1/1/2052

$273,743

7.50%

Lease Type Roof & Structure Increases Options Options to Purchase

NNN Tenant

Yes

Net Operating Income

MARKET OVERVIEW

Lease Commencement

$165,000

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2015 Vitorino Group

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TENANT INFORMATION

PROPERTY NAME

Company Summary

Number of Locations Headquarters Website

Company Ownership

JAE Restaurant Group LLC Private Boca Raton, FL www.jaerestuarantgroup.com

Wendy’s Public (NASDAQ: WEN)

Rating Agency

B Standard & Poor’s

Market Cap

3.54 Billion

Sales Volume

1.59 Billion

Number of Locations Years In Business Headquarters Website

MARKET OVERVIEW

Wendy’s is an American international fast food restaurant chain founded

by Dave Thomas on November 15, 1969, in Columbus, Ohio, United States. As of 2016, Wendy’s was the world’s third largest hamburger fast food chain with 6,503 locations. As of September 2016, there were a total of 6,503 locations, including 427 that are company-owned. 6,076 restaurants are franchised, and 77% of them are located in North America.

Wendy’s and its affiliates employ more than 47,000 people in its global operations. Wendy’s menu consists primarily of hamburgers, chicken sandwiches, French fries and beverages, including the signature Frosty, which is a soft serve frozen dairy dessert.

Company

PROPERTY DESCRIPTION

Tenant Summary

FINANCIAL ANALYSIS

JAE Restaurant Group is owned by Andres Garcia, Eddie Rodriguez, and Jhonny Mercado. They currently own a total of 137 Wendy’s restaurants in Florida, New Mexico, and Texas and are aggressively growing through acquisitions and new construction. JAE’s restaurants are operated by a Five-Star management team that is working diligently to achieve the company’s goals. They pride themselves on using quality service, continual improvement, community involvement, and innovation to measure success.

6,503+ 47 Years Dublin, OH www.wendys.com

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2015 Vitorino Group

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INVESTMENT HIGHLIGHTS

PROPERTY NAME

FINANCIAL ANALYSIS

• Long-Term 20-Year Absolute Net Lease – Zero Landlord Responsibilities • 7.5% Rental Increases every 5 years – Strong Hedge Inflation

• Property will undergo Wendy’s New ‘Image Activation’ Remodel – Expected Completion: October 2017

PROPERTY DESCRIPTION

• Strong & Experienced Franchisee – Operates 130+ locations and Continues to Successfully Expand Throughout the Southwest

Representative Photo

• Dense Infill Location • Directly Adjacent to one of the Highest Grossing Walmarts in the Southwest • High Level Store Sales Performance

MARKET OVERVIEW

• Close Proximity to New Mexico State University – Over 15,000 Students Enrolled

Representative Photo This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2015 Vitorino Group

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AERIAL MAP

PROPERTY NAME

FINANCIAL ANALYSIS

1 ,65 32 D VP

PROPERTY DESCRIPTION

N LTO WA BLV D

E N AV A M H E LO

MARKET OVERVIEW

Y HW AM CAN

Mesilla Valley Mall

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2015 Vitorino Group

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LOCAL MAP

PROPERTY NAME

FINANCIAL ANALYSIS PROPERTY DESCRIPTION MARKET OVERVIEW

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2015 Vitorino Group

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REGIONAL MAP

PROPERTY NAME

FINANCIAL ANALYSIS PROPERTY DESCRIPTION MARKET OVERVIEW

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2015 Vitorino Group

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MARKET SUMMARY

PROPERTY NAME

FINANCIAL ANALYSIS PROPERTY DESCRIPTION

LAS CRUCES, NM

Las Cruces is the economic and geographic center of the Mesilla Valley, the agricultural region on the floodplain of the Rio Grande which extends from Hatch to the west side of El Paso, Texas. Las Cruces is the home of New Mexico State University (NMSU), New Mexico’s only

land-grant university. The city’s major employer is the federal government on nearby White Sands Test Facility and White Sands Missile Range. The Organ Mountains, 10 miles (16 km) to the east, are dominant in the city’s landscape, along with the Doña Ana Mountains, Robledo Mountains, and Picacho Peak. Las Cruces lies 225 miles (362 km) south of Albuquerque, 48 miles (77 km) northwest of El Paso, Texas and 46 miles (74 km) north of the Mexican border at Santa Teresa.

MARKET OVERVIEW

Las Cruces, also known as “The City of the Crosses”, is the county seat of Doña Ana County, New Mexico. As of the 2010 census the population was 97,618, and in 2015 the estimated population was 101,643, making it the second largest city in the state, after Albuquerque.

Las Cruces is the largest city in both Doña Ana County and southern New Mexico. The Las Cruces metropolitan area had an estimated population of 213,676 in 2014. It is the principal city of a metropolitan statistical area which encompasses all of Doña Ana County and is part of the larger El Paso–Las Cruces combined statistical area.

Spaceport America, which lies 55 miles (89 km) to the north and with corporate offices in Las Cruces, has seen the completion of several successful manned, suborbital flights. The city is also the headquarters for Virgin Galactic, the world’s first company to offer sub-orbital spaceflights.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2015 Vitorino Group

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DEMOGRAPHIC SUMMARY

PROPERTY NAME

Geography: 5 Miles

FINANCIAL ANALYSIS

Population In the identified area, the current year population is 112,351. The rate of change since 2000 was 26.4%. The five-year projection for the population in the area is 114,261 representing a change of 1.8% from 2016 to 2021. Currently, the population is 48.7% male and 51.3% female. The median age in this area is 33.6, compared to U.S. median age of 38.0.

Households There are currently 45,123 households in your selected geography. The number of households has changed by 32.3% since 2000. It is estimated that the number of households in your area will be 45,972 five years from now, which represents a change of 1.9% from the current year. The average household size in your area is 2.41 persons.

PROPERTY DESCRIPTION

Income In 2016, the median household income for your selected geography is $37,914, compare this to the Entire US average which is currently $54,149. It is estimated that the median household income in your area will be $39,385 five years from now, which represents a change of 3.7% from the current year.

The current year per capita income in your area is $22,315, compare this to the Entire US average, which is $29,472. The current year average household income in your area is $54,924 compare this to the Entire US average which is $77,008.

Race and Ethnicity The current year racial makeup of your selected area is as follows: 74.1% White, 2.6% Black, 2.1% Native American and 2.1% Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 57.6% of the current year population in your selected area. Compare this to the Entire US average of 17.9%.

MARKET OVERVIEW

Housing In 2016, there were 24,173 owner occupied housing units in your area and there were 20,949 renter occupied housing units in your area. Median home value in the area is $163,082 compared to a median home value of $198,891 for the U.S.

Employment In 2016, there were 45,606 employees in your selected area, this is also known as the daytime population. Currently 61.9% of employees are employed in white-collar occupations in this geography, and 15.1% are employed in blue-collar occupations. In 2016, unemployment in this area is 12.0%.

Demographic data Š 2016 esri This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2015 Vitorino Group

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DEMOGRAPHIC STATISTICS

PROPERTY NAME

1-Mile

3-Miles

5-Miles

Income

1-Mile

3-Miles

5-Miles

2000 Population

10,172

62,733

88,875

$ 0 - $14,999

22.8%

22.6%

19.9%

2010 Population

10,776

73,864

109,471

$ 15,000 - $24,999

17.2%

16.4%

15.6%

2016 Population

10,740

74,596

112,351

$ 25,000 - $34,999

13.4%

11.8%

11.0%

2021 Population

10,793

75,474

114,261

$ 35,000 - $49,999

12.9%

13.4%

14.1%

$ 50,000 - $74,999

15.2%

14.2%

14.7%

$ 75,000 - $99,999

9.5%

9.2%

10.3%

$100,000 - $149,999

6.3%

8.0%

9.2%

Households

3-Miles

5-Miles

$150,000 - $199,999

1.8%

3.0%

3.2%

2000 Households

4,117

24,540

33,965

$200,000+

0.8%

1.5%

2.0%

2010 Households

4,515

30,533

43,820

2016 Median Household Income

$31,808

$34,239

$37,914

2016 Households

4,566

31,021

45,123

2016 Per Capita Income

$19,344

$21,236

$22,315

2021 Households

4,609

31,469

45,972

2016 Average Household Income

$45,491

$50,439

$54,924

2016 Daytime Population

4,593

30,151

45,606

2.34

2.33

2.41

2010 Owner Occupied Housing Units

44.8%

45.6%

52.3%

2010 Renter Occupied Housing Units

48.9%

47.4%

40.6%

6.3%

7.0%

7.1%

2016 Owner Occupied Housing Units

40.3%

41.5%

48.4%

2016 Renter Occupied Housing Units

51.2%

48.7%

42.0%

2016 Vacant

8.5%

9.7%

9.6%

2021 Owner Occupied Housing Units

39.1%

41.2%

48.0%

2021 Renter Occupied Housing Units

51.0%

47.7%

41.2%

2021 Vacant

9.9%

11.1%

10.8%

2016 Average Household Size

2010 Vacant

PROPERTY DESCRIPTION

1-Mile

FINANCIAL ANALYSIS

Population

Traffic Counts

31,840 MARKET OVERVIEW

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2015 Vitorino Group

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CONFIDENTIALITY AGREEMENT The information contained in the following offering memorandum is proprietary and strictly confidential.

It is intended to be reviewed only by the party receiving it from Vitorino Group and it should not be made available to any other person or entity without the written consent of Vitorino Group. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Vitorino Group.

This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation.

Vitorino Group has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, Vitorino Group has not verified, and will not verify, any of the information contained herein, nor has Vitorino Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE VITORINO GROUP AGENT FOR MORE DETAILS.

Net Lease Disclaimer Vitorino Group hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, the Vitorino Group has not and will not verify any of this information, nor has the Vitorino Group conducted any investigation regarding these matters.

The Vitorino Group makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. The Vitorino Group expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release The Vitorino Group and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

Approved by the Texas Real Estate Commission for Voluntary Use Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

B

Information About Brokerage Services

efore working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner’s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer’s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly.

IF THE BROKER REPRESENTS THE OWNER: The broker becomes the owner’s agent by entering into an agreement with the owner, usually through a written - listing agreement, or by agreeing to act as a subagent by accepting an offer of subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner’s agent anything the buyer would not want the owner to know because an owner’s agent must disclose to the owner any material information known to the agent.

IF THE BROKER REPRESENTS THE BUYER: The broker becomes the buyer’s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer’s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer’s agent anything the owner would not want the buyer to know because a buyer’s agent must disclose to the buyer any material information known to the agent.

IF THE BROKER ACTS AS AN INTERMEDIARY: A broker may act as an intermediary between the parties if the broker complies with The Texas Real Estate License Act. The broker must obtain the written consent of each party to the transaction to act as an

intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermediary in a transaction: (1) shall treat all parties honestly; (2) may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner; (3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and (4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property.

With the parties’ consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party.

If you choose to have a broker represent you, you should enter into a written agreement with the broker that clearly establishes the broker’s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding.

Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records.

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