Denny’s1 5 2 4 D a b n e y D r i v e | H e n d e r s o n , N C

O F F E R I N G M E M O R A N D U M

™

™

™

e x c l u s i v e ly l i s t e d b y

c o n t e n t s0 4

0 5

1 0

0 6

E X E C U T I V E S U M M A R Y

f i n a n c i a l O V E R V I E W

a r e a O V E R V I E W

t e n a n t o v e r v i e w

k y l e m at t h e w sBROKER OF RECORD

LIC # 288917

c h u c k e va n s

Senior Associate

Chuck.Evans@matthews.comDIR (310) 919-5841MOB (925) 323-2263LIC # 01963473 (CA)

C a lv i n S h o r t

FVP & Senior Director - STNL

Calvin.Short@matthews.comDIR (949) 432-4506MOB (310) 567-3525LIC # 01927216 (CA)

4 | M a t t h e w s R e a l E s t a t e I n -

• Brand new 20-year lease commencing at the close of escrow and two (2) additional five (5) year options to extend

• Attractive 7.50% rental increases every 5 years

• Close proximity to a Walmart Supercenter with shadow anchor tenants such as Belk, & JC Penney

• Surrounding retailers include Lowe’s, Cracker Barrel, Rite Aid, Chick-fil-A, Ruby Tuesday, Advance Auto Parts and Verizon to name a few

• Denny’s is located directly off Dabney Dr. which boasts traffic counts in excess of 23,000 ADT

• Master entity guarantee backed by RJC LLC

• RJC LLC operates 35+ units and is the 6th largest Denny’s franchisee in the United States

• RJC LLC’s total store sales revenue expected to exceed $42,000,000 in 2017

• Store sales over $2,000,000

i n v e s t m e n t h i g h l i g h t s

e x e c u t i v e s u m m a r y

D e n n y ’ s , H e n d e r s o n , N C | 5

D e n n y ’ s1524 Dabney DriveHenderson, NC 27536

List Price ................................................................................................................. $2,565,093

CAP Rate - Current ..........................................................................................................6.00%

Gross Leasable Area ............................................................................................ ± 4,470 SF

Lot Size ................................................................................................................. ± 1.00 Acres

Year Built .............................................................................................................................. 1993

Annualized Operating DataMonthly Rent Annual Rent Rent/SF Cap Rate

Years 1 - 5 $12,825.47 $153,905.63 $34.43 6.00%

Years 6 - 10 $13,787.38 $165,448.55 $37.01 6.45%

Years 11 - 15 $14,821.43 $177,857.19 $39.79 6.93%

Years 16 - 20 $15,933.04 $191,196.48 $42.77 7.45%

Option 1 $17,128.02 $205,536.22 $45.98 8.01%

Option 2 $18,412.62 $220,951.44 $49.43 8.61%

Option 3 $19,793.57 $237,522.79 $53.14 9.26%

Tenant Summary

Tenant Trade Name RJC LLC

Type of Ownership Fee Simple

Lease Guarantor Franchisee

Lease Type NNN (Landlord Responsible for Structure)

Roof Tenant Responsiible

Original Lease Term 20 Years

Lease Commencement Date Close of Escrow

Rent Commencement Date Close of Escrow

Lease Expiration Date 20 Years from COE

Term Remaining on Lease 20 Years

Increases 7.50% every 5 Years

Options Three (3), Five (5)

t e n a n to v e r v i e w

D e n n y ’ s , H e n d e r s o n , N C | 7

D e n n y ’ s

Denny’s is one of the leading full-service, family-style restaurant chains in the US, with more than 1,710 of its signature eateries located across the country. Typically open 24 hours a day, the chain is best known for its menu of breakfast items, including eggs, pancakes, and combination plates carrying such names as All-American Slam, Lumberjack Slam, and the aforementioned Grand Slam Breakfast. Denny’s also serves standard American fare (burgers, sandwiches, steak) for lunch and dinner. The company owns and operates about 165 of its restaurants, while the rest are franchised or operate under licensing agreements.

STRATEGY

Like many other chain restaurants, Denny’s markets itself as a family-friendly dining establishment featuring good value and quality food items. It relies heavily on discounted price offers and limited-time menu offerings to help drive traffic to its restaurants. Denny’s has thrived by stressing value through effective marketing and national advertising campaigns. Franchisees contribute a percentage of their gross revenue to support the national media push to drive traffic to Denny’s

locations and many make contributions to local marketing co-operatives.

OPERATIONS

The company utilizes franchising as a means to expand and oversee its wide-ranging chain of locations without the cost of owning and operating each of them. Local operators pay royalties or licensing fees in order to use the Denny’s brand and other intellectual property.

GEOGRAPHIC REACH

Denny’s has 1,710 eateries, including 1,599 restaurants in the US and 111 restaurants in Canada, Chile, Costa Rica, the island of Curaçao, the Dominican Republic, El Salvador, Guam, Honduras, Mexico, Puerto Rico, New Zealand, and the UAE.

Company Name Denny’s Corporation (NASDAQ: DENN)

Ownership Public

Revenue $491.29 M

Net Income $35.98 M

No. of Locations ± 1,710

No. of Employees ± 8,500

Headquartered Spartanburg, South Carolina

Website www.dennys.com

Year Founded 1988

8 | M a t t h e w s R e a l E s t a t e I n v e s t m e n t S e r v i c e s

Col

lege

Blv

d ±

40,11

6

± 32,000 ADT

Oceanside Blvd ± 31,792

t h e o f f e r i n g

Property Name Denny’s

Property Address 1524 Dabney Drive

Henderson, NC 27536

Assessor’s Parcel Number 0012-01011

Site DescriptionNumber of Stories One

Year Built 1993

Gross Leasable Area (GLA) ± 4,470 SF

Lot Size ± 1.00 Acres (43,560 SF)

Type of Ownership NNN

Parking 70 Surface Spaces

Parking Ratio 15 : 1,000 SF

p a r c e l m a p

Dabney Drive ± 23,000 ADT

t e n a n t m a p

1 0 | M a t t h e w s R e a l E s t a t e I n v e s t m e n t S e r v i c e s

Located just 40 minutes north of the capital city of Raleigh, Henderson is a rural town rich with history. If you are looking for a piece of “Small-Town Americana” you can find it in Henderson, North Carolina. Henderson is strategically located directly from I-85 or from Hwy 1 North of Raleigh. Henderson and Vance County have many landmarks and historical properties that offer places to visit and enjoy.

h e n d e r s o n d e m o g r a p h i c s

POPULATION 1 Mile 3 Mile 5 Mile

2022 Projection 3,163 18,607 26,312

2017 Estimate 3,115 18,628 26,277

2010 Census 3,123 19,356 27,134

2000 Census 2,933 20,107 27,384

Growth 2017 - 2022 1.54% -0.11% 0.13%

HOUSEHOLDS 1 Mile 3 Mile 5 Mile

2022 Projection 1,471 7,615 10,449

2017 Estimate 1,436 7,558 10,360

Growth 2017 - 2022 2.42% 0.76% 0.86%

INCOME 1 Mile 3 Mile 5 Mile

2017 Est. Average Household Income

$56,302 $45,617 $46,794

H e n d e r s o n , N C

a r e a o v e r v i e w

Economic DevelopmentThe City of Henderson sought designation as a North Carolina Main Street City and gained that status in 1986. Composing 16 square block sand occupying approximately 46 acres, Henderson’s Central Business Historic District is a testimony to the city’s role as the largest town and seat of Vance County since 1881. The district was placed on the National Register of Historic Place in 1987. The district contains 128 structures, 97 of which are contributing structures. Business/retail properties are available in historic downtown Henderson, home to the brand new McGregor Performing Arts Center.

D e n n y ’ s , H e n d e r s o n , N C | 1 1

SUBJECT PROPERTY

1 2 | M a t t h e w s R e a l E s t a t e I n v e s t m e n t S e r v i c e s

#1 America’s Best Places to Live Businessweek.com

#1 Fastest Growing Cities for Technology Jobs Dice

#5 Most Cost-Attractive Business Location KPMG

R a l e i g h O v e r v i e w

raleighRaleigh is the capital of North Carolina and a blossoming Southern metropolis. Raleigh is known as the “City of Oaks” for its many oak trees, which line the street in the heart of the city. Raleigh is one of the fastest-growing cities in the country. Raleigh is home to North Carolina State University and is part of the Research Triangle area, together with Durham and Chapel Hill. Raleigh is a bevy of cultural and culinary touchstones; and its storytellers proudly carry on the collective heritage of a rich, historic capital city. Raleigh is also leading in most recent quality-of-life rankings.

The triangleRaleigh, Durham and Chapel Hill are known for their research/technology roots and collegiate rivalries. North Carolina’s Research Triangle is one of the country’s largest and most successful research parks, and a major center in the United States for high-tech and biotech research, as well as advanced textile and development. This tri-city region known as the triangle is luring nearly 80 new residents a day with strong job growth and a high quality of life. Many people who call the Raleigh and Durham metro areas home are young, friendly, diverse and educated.

# Employer # of Employees

1 State of North Carolina 24,083

2 Wake County Public School System 18,554

3 IBM Corporation 10,000

4 WakeMed Health & Hospitals 8,422

5 NC State University 7,876

HIgher EducationAs home to 11 traditional universities and colleges and numerous satellite campuses and for-profit institutions of higher education, the Raleigh area is unusually rich in education opportunities. Among the traditional colleges are North Carolina State University, a major research center; a private women’s college; a law school; three seminaries; and two historically black colleges. The area is also enhanced by the presence of the University of North Carolina at Chapel Hill and by Duke University and North Caroline Central University. All of these N.C. universities are within a 45-minute commute of each other and from the Research Triangle Park, one of thenation’s largest and most prestigious R&D business parks (located in Durham andWake counties).

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Denny’s located at 1524 Dabney Drive, Henderson, NC 27536 (“Property”) . I t has been prepared by Matthews Real Estate Investment Services. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Real Estate Investment Services. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion ormanner detr imental to the interest of the Sel ler.

Owner and Matthews Real Estate Investment Services expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Real Estate Investment Services or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T

e x c l u s i v e ly l i s t e d b y

Denny’s1 5 2 4 D a b n e y D r i v e | H e n d e r s o n , N C

k y l e m at t h e w sBROKER OF RECORD

LIC # 288917

c h u c k e va n s

Senior Associate

Chuck.Evans@matthews.comDIR (310) 919-5841MOB (925) 323-2263LIC # 01963473 (CA)

C a lv i n S h o r t

FVP & Senior Director

Calvin.Short@matthews.comDIR (949) 432-4506MOB (310) 567-3525LIC # 01927216 (CA)

™