wendy's (dieter) - el paso, tx

EL PASO, TX

Representative Photo

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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

PRICING & FINANCIAL ANALYSIS

Offering Summary

Price $3,095,000

Cap Rate 5.00%

Net Operating Income $154,700

Year Built 2016

Gross Leasable Area 3,400 SF

Lot Size 0.94 Acres

LeaSe Summary

Lease Term 20 Years

Lease Commencement 3/1/2016

Lease Expiration 2/29/2036

Remaining Term 20 Years

Lease Type NNN

Roof & Structure Tenant

Increases Annually

Options 4 x 5 Year

Options to Purchase None

AnnuAlized OperAting dAtA

Year(s) Commencement Annual Increase

1 3/1/2016 $154,700 -

2 3/1/2017 $157,021 1.50%

3 3/1/2018 $159,376 1.50%

4 3/1/2019 $161,766 1.50%

5 3/1/2020 $164,193 1.50%

6 3/1/2021 $166,656 1.50%

7 3/1/2022 $169,156 1.50%

8 3/1/2023 $171,693 1.50%

9 3/1/2024 $174,268 1.50%

10 3/1/2025 $176,882 1.50%

11 3/1/2026 $179,536 1.50%

12 3/1/2027 $182,229 1.50%

13 3/1/2028 $184,962 1.50%

14 3/1/2029 $187,737 1.50%

15 3/1/2030 $190,553 1.50%

16 3/1/2031 $193,411 1.50%

17 3/1/2032 $196,312 1.50%

18 3/1/2033 $199,257 1.50%

19 3/1/2034 $202,246 1.50%

20 3/1/2035 $205,279 1.50%

Option 1: 21-25 3/1/2036 $220,675 7.50%

Option 2: 26-30 3/1/2037 $237,226 7.50%

Option 3: 31-35 3/1/2038 $255,018 7.50%

Option 4: 36-25 3/1/2039 $274,144 7.50%

net Operating incOme $154,700

Wendy’s1501 George Dieter DriveEl Paso, TX 79936

NOTE: Rent Commencement is subject to change as subject property is currently under contruction. It is estimated to be open by 4/15/16.

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TENANT INFORMATION

tenant Summary

Company Name JAE Restaurant Group LLC

Ownership Private

Number of Locations 130+

Headquartered Boca Raton, FL

Website www.jaerestuarantgroup.com

cOmpany Summary

Tenant Name Wendy’s

Ownership Public

Rating B

Agency Standard and Poor’s

Ticker Symbol WEN

Exchange NASDAQ

Market Cap $2.53 Billion

Sales Volume $2.06 Billion

Number of Locations 6,500

Years In Business 46 Years

Headquartered Dublin, OH

Website www.wendys.com

Wendy’s is an American international fast food chain restaurant founded by Dave Thomas on November 15, 1969, in Columbus, Ohio, United States. The company moved its headquarters to Dublin, Ohio, on January 29, 2006. As of March 1999, Wendy’s was the world’s third largest hamburger fast food chain with approximately 6,650 locations, following Burger King’s 12,000+ locations and McDonald’s’ 31,000+ locations. On April 24, 2008, the company announced a merger with Triarc, the parent company of Arby’s. Despite the new ownership, Wendy’s headquarters remained in Dublin. Following the merger, Triarc became known as Wendy’s/Arby’s Group (now The Wendy’s Company), a publicly traded company.

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. Their 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.

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INVESTMENT HIGHLIGHTS

• Long-Term 20-Year Absolute Net Lease – Zero Landlord Responsibilities

• Rare 1.5% Annual Rent Increases – Strong Hedge Against Inflation

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

• New 2016 Construction – Latest Wendy’s Prototype

• Wendy’s New ‘Image Activation’ – Features Include Lounge Seating with Fireplaces, Flat Screens TV’s, Wi-Fi and Digital Menu Boards

• Dense Infill Location – Population within a 5-Mile Radius Exceeds 299,000 People

• El Paso is #1 Lowest Crime Rate in the US Over 500,000 Population 4th Year in a Row

• El Paso has Four International Ports of Entry – Strong Crossover Consumer Traffic

• El Paso is Home to Fort Bliss Military Base

• Contributes Over $1.5B to the Economy

• Second Largest U.S. Army Base Comprised of Over 1.12 Million Acres on the US/Mexico Border

• Currently 90,000 Soldiers and Family Members Call Fort Bliss Home



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WENDY’S


SITE PLAN

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AERIAL MAP

MyrtleCooper

ElementarySchool

UniversityMedical CenterEl Paso

Future Development

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WENDY’S


LOCAL MAP

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REGIONAL MAP

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MARKET SUMMARY

EL PASO, TX

El Paso is located at the western tip of Texas, where Texas, New Mexico and Old Mexico meet. It is the largest international metroplex in the world and seamlessly blends cultures and traditions: from the historic Old West to the colors of Mexico, from the heritage of Native Americans to the beauty of our desert sun.

El Paso has long been discovered. Since the early days when Spanish Conquistadors arrived at the banks of the Rio Grande in 1598, to today, with the millions of visitors who come here on a yearly basis.

El Paso has a diversified economy focused primarily within international trade, military, government civil service, oil and gas, health care, tourism and service sectors. The El Paso metro area had a GDP of $29 billion in 2011. There were also $92 billion worth of trade in 2012. Over the past 15 years the city has become a significant location for American-based call centers. Cotton, fruit, vegetables, and livestock are also produced in the area. El Paso has added a significant manufacturing sector with items and goods produced that include petroleum,

metals, medical devices, plastics, machinery, defense-related goods and automotive parts. The city is the second busiest international crossing point in the U.S behind San Diego.

El Paso is home to one Fortune 500 company in Western Refining, which is listed on the New York Stock Exchange. More than 70 Fortune 500 companies have offices in El Paso, including AT&T, ADP, Boeing, Charles Schwab, Delphi, dish network, Eureka, Hoover, Raytheon, State Farm and USAA. Hispanic Business Magazine included 28 El Paso companies in its recently released list of the 500 largest Hispanic owned businesses in the United States. El Paso’s 28 companies are second only to Miami’s 57. The city also has a large military presence with Fort Bliss, William Beaumont Army Medical Center and Biggs Army Airfield.

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DEMOGRAPHIC SUMMARY

Geography: 5 Miles

Demographic data © 2015 esri

PoPulation

In the identified area, the current year population is 299,248. The rate of change since 2000 was 30.0%. The five-year projection for the population in the area is 314,292 representing a change of 5.0% from 2015 to 2020. Currently, the population is 47.6% male and 52.4% female. The median age in this area is 32.4, compared to U.S. median age of 37.9.

HouseHolds There are currently 96,704 households in your selected geography. The number of households has changed by 32.7% since 2000. It is estimated that the number of households in your area will be 102,223 five years from now, which represents a change of 5.7% from the current year. The average household size in your area is 3.09 persons.

income In 2015, the median household income for your selected geography is $40,987, compare this to the Entire US average which is currently $53,217. It is estimated that the median household income in your area will be $45,944 five years from now, which represents a change of 12.1% from the current year.

The current year per capita income in your area is $17,888, compare this to the Entire US average, which is $28,597. The current year average household income in your area is $55,174, compare this to the Entire US average which is $74,699.

Race and etHnicity The current year racial makeup of your selected area is as follows: 80.9% White, 3.2% Black, 0.9% Native American and 1.0% 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 86.2% of the current year population in your selected area. Compare this to the Entire US average of 17.6%.

Housing In 2015, there were 61,470 owner occupied housing units in your area and there were 35,234 renter occupied housing units in your area. Median home value in the area is $159,858, compared to a median home value of $200,006 for the U.S.

emPloyment In 2015, there are 119,415 employees in your selected area, this is also known as the daytime population. Currently 56.6% of employees are employed in white-collar occupations in this geography, and 22.0% are employed in blue-collar occupations. In 2015, unemployment in this area is 4.0%.

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DEMOGRAPHIC STATISTICS

pOpulAtiOn 1-Mile 3-Miles 5-Miles

2000 Population 18,003 118,852 239,483

2010 Population 17,859 131,657 284,887

2015 Population 18,755 137,342 299,248

2020 Population 19,753 143,596 314,292

traffic cOuntS

HOuseHOlds 1-Mile 3-Miles 5-Miles

2000 Households 5,372 35,659 72,849

2010 Households 5,899 42,531 90,909

2015 Households 6,363 45,159 96,704

2020 Households 6,792 47,656 102,223

2015 Daytime Population 8,726 57,809 119,415

2015 Average Household Size 2.91 3.03 3.09

2010 Owner Occupied Housing Units 3,542 28,321 60,365

2010 Renter Occupied Housing Units 2,357 14,210 30,544

2010 Vacant 180 1,356 3,143



2015 Vacant 313 1,940 4,223



2020 Vacant 380 2,269 4,851

incOMe 1-Mile 3-Miles 5-Miles

$ 0 - $14,999 16.1% 14.9% 15.7%

$ 15,000 - $24,999 12.3% 12.0% 13.2%

$ 25,000 - $34,999 11.7% 11.3% 12.7%

$ 35,000 - $49,999 11.3% 15.5% 17.3%

$ 50,000 - $74,999 18.2% 17.8% 17.3%

$ 75,000 - $99,999 13.5% 11.4% 10.2%

$100,000 - $149,999 12.6% 11.0% 9.0%

$150,000 - $199,999 3.1% 3.7% 3.1%

$200,000+ 1.3% 2.3% 1.5%

2015 Median Household Income $47,557 $45,388 $40,987

2015 Per Capita Income $20,322 $20,162 $17,888

2015 Average Household Income $58,857 $61,086 $55,174

31,036

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.

CONFIDENTIALITY AGREEMENT

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.

Net Lease Disclaimer

Before 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

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.

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

Information About Brokerage Services

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:

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.

(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.

exclusively listed

469.844.8880 | VITORINOGROUP.COM

wendy's (dieter) - el paso, tx

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