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Hardee’s3900 Calumet Ave, Manitowoc, WI 54220

OFFERING MEMORANDUM

This Marketing Brochure contains select information pertaining to the business and affairs of Hardee’s located at 3900 Calumet Ave, Manitowoc, WI 54220 here to referred to as “Property”. Information in this Marketing Brochure is confidential and provided solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose and may not be made available to any other person without the written consent of the Seller or Matthews Retail Group, Inc.

This Marketing Brochure has been prepared by Matthews Retail Group, Inc. (also known as Matthews Retail Advisors) based in part upon information supplied by the Seller and in part upon financial information obtained from sources deemed reliable by Matthews Retail Group, Inc. However, Matthews Retail Group, Inc. has not and will not verify any of this information, nor has Matthews Retail Group, Inc. conducted any investigation regarding these matters. Matthews Retail Group, Inc. makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

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 the Buyer’s thorough due diligence investigation of this investment opportunity. Matthews Retail Group, Inc. expressly denies any obligation to conduct a due diligence examination of this Property for the 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 the Buyer depends on factors that should be evaluated by the Buyer and their tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any property to determine to their satisfaction the suitability of the Property for their investment goals.

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 performance.

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 Seller and Matthews Retail Group, Inc. of any and all liability and hold the parties harmless from any kind of claim, cost, or expense arising out of your investigation and/or purchase of this Property.

NON-ENDORSEMENT NOTICEMatthews Retail Group, Inc. is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this Marketing Brochure. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Matthews Retail Group, Inc., its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Matthews Retail Group, Inc., and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

CONFIDENTIALITY & DISCLAIMER STATEMENT

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PRICING AND FINANCIAL ANALYSISInvestment Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Financial Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Lease Abstract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Company Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

PROPERTY DESCRIPTIONProperty Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Bird’s Eye . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Tenant Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Regional Map. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

DEMOGRAPHICSDemographics Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12City Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

TABLE OF CONTENTS

PRESENTED BY

Beau BeachBroker of Record

License No. 55685

Calvin ShortVP & Senior Director - STNL

License No. 01927216O 310.919.5770M 310.567.3525calvin.short@matthews.com

Connor OlandtAssociate

License No. 01985082O 949.432.4504M 818.618.4522connor.olandt@matthews.com

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™PRICING AND FINANCIAL ANALYSIS

INVESTMENT HIGHLIGHTS

NEWER CONSTRUCTION BUILDING

• Absolute NNN investment - Zero landlord responsibilities

• The Hardee’s was built in 2013 and there are 7 years

remaining on the initial 10 year lease

• The Tenant pays base rent with an additional 5.00% of the

Gross Sales amount in excess of $1,100,000

GOOD MIX OF SURROUNDING NATIONAL RETAILERS

• The offering is ideally positioned on a hard corner along the

main retail corridor on Calumet Ave

• Surrounding tenants include Walmart, Lowe’s, Kohl’s, Office

Max, Wells Fargo, and Buffalo Wild Wings to name a few

SEASONED FRANCHISEE OPERATOR

• Northland Restaurant Group operates 87+ Hardee’s locations

• Carl Karcher Enterprises (CKE) is one of the largest national

QSR concepts in the world and has over 3,100 locations

nationwide

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Investment Overview

EXECUTIVE SUMMARY3900 Calumet Ave Manitowoc, WI 54220List Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,204,000Gross Leasable Area . . . . . . . . . . . . . . . . . . . . . . . . ±3,260 SFCAP Rate - Current. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.75%Year Built . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2013Lot Size . . . . . . . . . . . . . . . . . . . . . . . . ±53,845 Acres (1.24 SF)

ANNUALIZED OPERATING DATAMonthly Rent Annual Rent CAP Rate

8/5/2013 - 8/4/2018 $6,775.00 $81,300.00 6.75%

8/5/2018 - 8/4/2023 $7,275.00 $87,300.00 7.25%

Option 1 $7,500.00 $90,000.00 7.48%

Option 2 $8,000.00 $96,000.00 7.97%

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Financial Overview

TENANT SUMMARYTenant Trade Name Hardee’s

Type of Ownership Fee Simple

Lease Guarantor Northland Restuarant Group

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 10 years

Lease Commencement Date 8/5/2013

Rent Commencement Date 8/5/2013

Lease Expiration Date 8/4/2023

Term Remaining on Lease ±7 Years

Increases7.38% Increase in 2018, 3.10% Increase in 2023,

6.67% Increase After First Option

Options Two (2), Five (5) Year Options

Lease Abstract

Tenant: Hardee’s

Guarantor: Northland Restaurant Group

Size: Approximately 3,260 SF

Rent Commencement: 8/5/2013

Lease Expiration: 8/4/2023

Renewal Options: Two (2), Five (5) Year Options

Current Rent: $81,300 plus 5.00% of Gross Sales in excess of $1,100,000

Rent Increases:7.38% increase in 2018 with additional 5.00% of Gross Sales in excess of $1,100,0003.10% increase in 2023 with additional 5.00% of Gross Sales in excess of $1,220,0006.67% increase after first option with additional 5.00% of Gross Sales in excess of $1,220,000

Net Lease: Absolute NNN - Zero Landlord Responsibilities

Real Estate Taxes: Tenant shall pay for all taxes and assessments upon the property

Insurance: Tenant shall, at its own costs, obtain and manage general liability insurance, fire and extended coverage

Utilities: Tenant shall pay for all utilities and services

Tenant Assignment and Subletting:Tenant shall not assign, transfer, mortgage or encumber this Lease nor sublet or permit any other person to occupy Premises without Landlord’s written consent, unless assigning to a franchisee of Hardee’s Food Systems Inc. Upon such assignment, Tenant shall be released from all Lease obligations.

Right of First Refusal: None

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CKE is a leading fast-food operator with about 3,450 eateries across the

country. Its Carl’s Jr. chain, known for its signature Six Dollar Burger, includes

almost 1,400 locations in California and other mostly western states. CKE

also owns Hardee’s Food Systems, which operates and franchises roughly

1,950 Hardee’s locations, mostly in the Midwest and Southeast. About 890

of CKE’s restaurants are corporate-owned, while the rest are franchised or

licensed.

Property Name Hardee’s

Property Type Net Leased Quick Service Restauarant

Parent Company Trade Name CKE Restaurants

Ownership Private

Revenue $1.28 B

No. of Locations ±1,944

Headquartered St. Louis, MO

Web Site www.hardees.com

Year Founded 1960

Company Overview

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™PROPERTY DESCRIPTION

THE OFFERINGProperty Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Hardee’sProperty Address . . . . . . . . . . . . . . . . . . . . . 3900 Calumet Ave Manitowoc, WI 54220Assessor’s Parcel Number . . . . . . . . . . . . . . . . . . . 836-202-010

SITE DESCRIPTIONNumber of Stories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . OneYear Built . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2013Gross Leasable Area (GLA) . . . . . . . . . . . . . . . . . . . . . ±3,260 SFLot Size . . . . . . . . . . . . . . . . . . . . . . . . ±1.24 Acres (53,845 SF)Type of Ownership. . . . . . . . . . . . . . . . . . . . . . . . . Fee SimpleLandscaping . . . . . . . . . . . . . . . . . . . . . . . . . . . . ProfessionalTopography. . . . . . . . . . . . . . . . . . . . . . . . . . . Generally Level

CONSTRUCTIONFoundation . . . . . . . . . . . . . . . . . . . . . . . . . . . .Concrete SlabFraming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .WoodParking Surface . . . . . . . . . . . . . . . . . . . . . . . . . . . . .AsphaltRoof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Flat

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Property Overview

PROPERTY DESCRIPTION

Calu

met

Ave

±14

,000

ADT

Division Street

S 39th Street

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Bird’s Eye

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Tenant Map

PROPERTY DESCRIPTION

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Regional Map

™DEMOGRAPHICS

Population 3-Mile 5-Mile 10-Mile

2021 Projection 29,578 36,143 57,163

2016 Estimate 30,030 36,542 57,867

2010 Census 31,004 37,479 59,403

2000 Census 32,232 38,188 61,065

Households

2021 Projection 13,040 16,060 25,197

2016 Estimate 13,083 16,062 25,200

2010 Census 13,215 16,144 25,298

2000 Census 13,134 15,691 24,663

Income

$0 - $15,000 11.17% 11.94% 11.29%

$15,000 - $24,999 12.75% 12.51% 12.23%

$25,000 - $34,999 14.29% 13.68% 13.26%

$35,000 - $49,999 19.39% 18.70% 17.77%

$50,000 - $74,999 17.30% 16.95% 18.28%

$75,000 - $99,999 10.90% 11.39% 12.13%

$100,000 - $124,999 6.53% 6.45% 7.11%

$125,000 - $149,999 3.13% 3.28% 3.35%

$150,000 - $199,999 2.02% 2.21% 2.08%

$200,000 - $249,999 0.90% 1.03% 0.92%

$250,000 - $499,999 1.17% 1.34% 1.15%

$500,000+ 0.45% 0.52% 0.44%

2016 Est. Average Household Income $59,911 $61,277 $61,400

2016 Est. Median Household Income $44,119 $44,521 $46,171

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Demographics Report

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City Overview

MANITOWOC, WILocated in Wisconsin, north of Milwaukee, the city of Manitowoc is situated on Lake Michigan at the mouth of the Manitowoc River. Known as Wisconsin’s “Maritime Capital,” Manitowoc celebrates its past and its present as a shipbuilding center with fascinating attractions. The city is home to the largest maritime museum on the Great Lakes, which contains displays of everything from wooden sailing ships to a World War II-era submarine. As a thriving and prosperous community, Manitowoc is recognized worldwide as the manufacturer of spectacular yachts.

Thousands of visitors are drawn to the city each year to explore the USS Cobia World War II submarine, tour the Rogers Street Fishing Village to view relics of famous shipwrecks, or sail across Lake Michigan on the S.S. Badger. Manitowoc is the lone Wisconsin port for the S.S. Badger carferry, the largest carferry on the Great Lakes, which sails from Ludington, Michigan and back every May through October. Visitors can also charter sport fishing boats and sail out of the city’s modern harbor and marina.

Ranked #2 by Forbes Magazine for “Best Small Cities to Raise a Family”, Manitowoc takes great pride in its strong tradition of their people’s friendliness and caring. For more than 20 years, Downtown Manitowoc has promoted its businesses and events through a volunteer organization comprised of interested business owners and others known as the Manitowoc City Center Association (MCCA).

TOP EMPLOYERS - MANITOWOC COUNTY

1. Manitowoc Public School District

2. Manitowoc Cranes

3. Manitowoc County

4. Federal-Mogul Powertrain System

5. Parker Hannifin Corporation

6. Manitowoc FSG Operations LLC

7. Aurora Medical Group Inc.

8. City of Manitowoc

9. Walmart

10. Lakeside Foods Inc.

841 Apollo Street, Suite 150 | El Segundo, CA 90245 | www.matthews.com™

Hardee’s3900 Calumet Ave, Manitowoc, WI 54220

OFFERING MEMORANDUM

Beau BeachBroker of Record

License No. 55685

Calvin ShortVP & Senior Director - STNL

License No. 01927216O 310.919.5770M 310.567.3525calvin.short@matthews.com

Connor OlandtAssociate

License No. 01985082O 949.432.4504M 818.618.4522connor.olandt@matthews.com