Applebee’s • Offering Memorandum 2159 Coliseum Dr, Hampton, VA 23666

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any otherperson or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest inthe subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to theincome 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, PCB's orasbestos, the compliance with 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 occupancyof the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information containedherein, nor has Marcus & Millichap 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 musttake appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliationwith, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providingtenant lessee information about this listing to prospective customers.

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N E T L E A S E D D I S C L A I M E R

Marcus & Millichap 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, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted anyinvestigation regarding these matters. Marcus & Millichap 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 yourthorough due diligence investigation of this investment opportunity. Marcus & Millichap 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 factorsthat 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’spast 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 basedon 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 withother 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/herown 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 thelease 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 Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this netleased property.

CONFIDENTIALITY & DISCLAIMER | PG. 2

Applebee’s | 2159 Coliseum Dr | Hampton, VA

APPLEBEE'SHampton, VAACT ID Z0280854

INVESTMENT OVERVIEW 01

FINANCIAL OVERVIEW 02

LOCATION OVERVIEW 03

SECTION

E X C L U S I V E L Y L I S T E D B YKarly IaconoVice President Net Leased Properties GroupNational Retail GroupTel: (201) 742-6119karly.iacono@marcusmillichap.comLicenses: NJ 0345216, NY 10401274993www.iaconoretailgroup.com

INVESTMENT

OVERVIEW

EXECUTIVE SUMMARY | PG. 5

Applebee’s | 2159 Coliseum Dr | Hampton, VA

Vital Data

Price $3,493,000

Cap Rate 7.30%

Price / SF $979.25

Rent / SF $71.50

Net Operating Income $255,042

Gross Leasable Area 2,875 Sq. Ft.

Year Built / Renovated 1988 / 2009

Lot Size 1.19 acres

Lease Type Absolute NNN

204,7515-Mile Population

$63,5375-Mile Average Income

80,5455-Mile Estimated Households

20,363Vehicles Per Day

LOCATION HIGHLIGHTS

OFFERING PRICE CAP RATE

$3,493,000 7.30%TERM REMAINING

8.8 Years2159 Coliseum Dr,

Hampton, VA

INVESTMENT OVERVIEW | PG. 6

Applebee’s | 2159 Coliseum Dr | Hampton, VA

Absolute NNN Lease 10% Rent Increases Every 5 Years Strong Franchisee Guarantee | 65+ Unit Operator High Traffic Location | 20k+ VPD Located in a Dense Retail Corridor Excellent Demographics | 204k+ People in 5 Miles Located Just off I-64 | 170K+ VPD

Investment Highlights

Marcus and Millichap is pleased to exclusively present a net leased Applebee’s in Hampton, VA. The property is subject to an absolute net lease guaranteed by a 65 unit franchisee. There are 8.8 years remaining on the base term and four 5 year option periods. The lease calls for rental increases of 10% every 5 years throughout the base term and options.

Applebee’s is a leading casual dining brand with over 1,800 locations worldwide and $3.53 Billion in annual revenue. The franchisee for the subject property is Potomac Family Dining Group, the sixth largest franchisee in the Applebee's system. Potomac Family Dining Group operates 65 restaurants across the Southeast and Mid-Atlantic.

The subject property is located in the Virginia Beach–Norfolk–Newport News MSA which has more than 1.7 million people. Coliseum Drive is a dense retail corridor where the average traffic counts are over 20k vehicles per day. There are many national tenants surrounding the property such as Chick-fil-a, Barnes and Noble, Kroger, Target, Planet Fitness, and more. I-64 is located only 2.5 miles away with average traffic counts exceeding 170k vehicles per day.

TENANT OVERVIEW | PG. 7

Applebee’s | 2159 Coliseum Dr | Hampton, VA

1,800+LOCATIONS

NYSE:DIN

FOUNDED IN 1980

2018 REVENUE: $3.53B*2018 Financial Statement

Applebee’s started with the same philosophy they follow today, which is a focus on serving good food to good people. The Applebee’s chain was started by Bill and T. J. Palmer who opened their first restaurant, T.J. Applebee’s Rx for Edibles & Elixirs, in Decatur, Georgia, on November 19, 1980.

Potomac Family Dining Group was founded in late 2010 by Timothy George, a former Dine Equities executive. In late 2010 Potomac acquired 30 Applebee’s in Virginia, Maryland, West Virginia, and Pennsylvania. Mr. George’s vision was to become a major franchisee and leader in the Applebee’s brand. True to his vision, he acquired 39 additional Applebee’s in October 2012. After this second acquisition, Potomac Family Dining Group became the 6th largest franchisee in the Applebee’s system. The company’s intent is to keep growing via the acquisition of additional Applebee’s. Currently, they operate 65+ units.

FINANCIAL

OVERVIEW

FINANCIAL OVERVIEW | PG. 9

Applebee’s | 2159 Coliseum Dr | Hampton, VA

Offering Summary

Property Address 2159 Coliseum Drive,Hampton, VA

Price $3,493,000

Cap Rate 7.30%

Price / SF $979.25

Rent / SF $71.50

Property Description

Year Built / Renovated 1988 / 2009

Gross Leasable Area 3,567 Sq. Ft.

Lot Size 1.19 acres

Type of Ownership Fee Simple

Lease Summary

Property Subtype Net Leased Restaurant

Tenant Potomac Family Dining

Guarantor Franchisee (65 Unit Operator)

Lease Type Absolute NNN

Lease Commencement December 1, 2009

Lease Expiration June 12, 2028

Base Term Remaining 8.8 Years

Renewal Options Four 5-Year

Rent Increases 10% Every 5 Years

Landlord Responsibility None

Tenant Responsibility Taxes, Maintenance, Insurance

Right of First Refusal NoAnnualized Operating Data

Year Annual Rent Monthly Rent

Rent/SF Cap Rate

Current $255,042 $21,254 $71.50 7.30%

2019-2023 $255,042 $21,254 $71.50 7.30%

2023-2028 $280,546 $23,379 $78.65 8.03%

Option 1* $308,601 $25,717 $86.52 8.83%

Option 2* $339,461 $28,288 $95.17 9.72%

Option 3* $373,407 $31,117 $104.68 10.69%

Option 4* $410,478 $34,229 $115.15 11.76%

*Option rent is the greater of 95% FMV or 110% of the base rent for the prior lease year. Such new base rent shall apply for the ensuing five year period.

LOCATION

OVERVIEW

REGIONAL MAP | PG. 11

Applebee’s | 2159 Coliseum Dr | Hampton, VA

2159 Coliseum Dr, Hampton, VA 23666

TENANT MAP | PG. 12

Applebee’s | 2159 Coliseum Dr | Hampton, VA

Subject Property

Burger King

Peninsula Town Center77+ Stores and Restaurants

McDonald’s

TRAFFIC MAP | PG. 13

Applebee’s | 2159 Coliseum Dr | Hampton, VA

Subject Property

DEMOGRAPHICS OVERVIEW | PG. 14

Applebee’s | 2159 Coliseum Dr | Hampton, VA

Demographics Summary

1 Miles 3 Miles 5 Miles

POPULATION

2023 Projection 10,178 79,491 207,540

2018 Estimate 9,652 78,930 204,751

2010 Census 9,675 78,572 201,574

2000 Census 8,964 82,068 209,192

INCOME

Average $53,404 $59,237 $63,537

Median $42,792 $47,661 $49,103

Per Capita $26,535 $24,280 $25,392

HOUSEHOLDS

2023 Projection 5,057 32,702 82,424

2018 Estimate 4,720 32,026 80,545

2010 Census 4,860 32,511 80,687

2000 Census 4,369 31,154 78,222

HOUSING

2018 $179,055 $180,152 $187,272

EMPLOYMENT2018 Daytime Population 15,643 91,697 230,411

2018 Unemployment 3.62% 4.47% 5.10%

2018 Median Time Traveled 22 24 24

RACE & ETHNICITY

White 31.63% 33.95% 40.77%

Native American 0.10% 0.13% 0.13%

African American 57.91% 57.15% 49.59%

Asian/Pacific Islander 2.57% 2.47% 2.67%

E X C L U S I V E L Y L I S T E D B YKarly IaconoVice President Net Leased Properties GroupNational Retail GroupTel: (201) 742-6119karly.iacono@marcusmillichap.comLicenses: NJ 0345216, NY 10401274993www.iaconoretailgroup.com

VA BOR: Bryn MerreyLicense: 0225215804