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SVN The Kase Group

Jacob Abusharkh

Managing Director415.269.2474

[email protected]#01385529

www.TheKaseGroup.com

Popeyes Fee Simple Ground Lease | Santa Rosa, CA

$3,200,000 | 3.75% CAP

Offering Highlights

New 20 Year Absolute NNN Ground Lease

100% Fee Simple Interest

Zero Landlord Obligations

Scheduled 10% Increases in Rent

Lease is Guaranteed by Franchisee, NorCal Cajun Foods, Inc

Major Retail Trade Area

New 2015 High Quality Improvements

Representative Photo

Popeyes Fee Simple Ground Lease


All Sperry Van Ness® Offices Independently Owned & OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for correctness.



SVN The Kase Group

The material contained in this Investment Offering Brochure is furnished solely for the purpose of considering the purchase of the property within and is not to be used for any other purpose. This information should not, under any circumstances, be photo-copied or disclosed to any third party without the written consent of Sperry Van Ness or Owner, or used for any purpose whatsoever other than to evaluate the possible purchase of the Property.

The only party authorized to represent the Property Owner (“Owner”) in connection with the sale of the Property is the Sper-ry Van Ness Advisor listed in this proposal, and no other person is authorized by the Owner to provide any information or to make any representations other than contained in this Investment Of-fering Brochure. If the person receiving these materials does not choose to pursue a purchase of the Property, this Offering Bro-chure must be returned to Sperry Van Ness.

Neither the Sperry Van Ness Advisor nor the Owner make any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein, and noth-ing contained herein is or shall be relied upon as a promise or representation as to the future performance of the Property. This Offering Brochure may include certain statements and estimates by Sperry Van Ness with respect to the projected future perfor-mance of the Property. These Assumptions may or may not be proven to be correct, and there can be no assurance that such estimates will be achieved. Further, the Sperry Van Ness Advisor and the Owner disclaim any and all liability for representations or warranties, expressed or implied, contained in or omitted from this Investment Offering Brochure, or any other written or oral communication transmitted or made available to the recipient. The recipient shall be entitled to rely solely on those repre-sentations and warranties that may be made to it in any final,

fully executed and delivered Real Estate Purchase Agreement between it and Owner.

The information contained herein is subject to change without notice and the recipient of these materials shall not look to Owner or the Sperry Van Ness Advisor, nor any of their officers, employees, representatives, independent contractors or af-filiates, for the accuracy or completeness thereof. Recipients of this Investment Offering Brochure are advised and encouraged to conduct their own comprehensive review and analysis of the Property.

This Investment Offering Brochure is a solicitation of interest only and is not an offer to sell the Property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expres-sions of interest to purchase the Property and expressly reserves the right, at its sole discretion, to terminate negotiations with any entity, for any reason, at any time with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the Investment Offering Brochure or making an offer to purchase the Property unless and until the Owner executes and delivers a signed Real Estate Purchase Agreement on terms ac-ceptable to Owner, in Owner’s sole discretion. By submitting an offer, a prospective purchaser will be deemed to have acknowl-edged the foregoing and agreed to release the Owner and the Sperry Van Ness Advisor from any liability with respect thereto.

To the extent Owner or any agent of Owner corresponds with any prospective purchaser, any prospective purchaser should not rely on any such correspondence or statements as binding Owner. Only a fully executed Real Estate Purchase Agreement shall bind the property and each prospective purchaser proceeds at its own risk.

Disclaimer | Confidentiality

Popeyes Fee Simple Ground LeaseSVN The Kase Group



CONTENTS

PROPERTY OVERVIEW

Offering Highlights

Executive Summary

Concept Summary

FINANCIAL OVERVIEW

Financial Summary

LOCATION OVERVIEW

Location Maps

Aerial Photo

DEMOGRAPHICS

Demographics Report

Demographics Map




PROPERTY OVERVIEW

Offering Highlights

Executive Summary

Concept Summary

New 20 Year Absolute NNN Ground Lease

100% Fee Simple Interest

Zero Landlord Obligations

Scheduled 10% Increases in Rent

Lease is Guaranteed by Franchisee, NorCal Cajun Foods, Inc

Major Retail Trade Area

New 2015 High Quality Improvements

Offering Highlights




Investment OverviewSale Price: $3,200,000

CAP Rate: 3.75%

Net Operating Income: $120,000

Building Size: 2,700 SF

Lot Size: 0.69 Acre

Market: Bay Area

PropertyThis is a rare Santa Rosa, CA retail ground lease opportunity unlike anything else available in the market. The offering is the 100% fee simple interest in a 20 year corporate guaranteed ground lease with scheduled 10% increases every 5 years in both the initial term and at each of the three 5 year renewal options.

LocationSanta Rosa is the county seat of Sonoma County, California, United States. The Census Bureau has estimated its 2012 population at 170,685. Santa Rosa is the largest city in California’s North Coast, Wine Country and the North Bay; the fifth most populous city in the San Francisco Bay Area after San Jose, San Francisco, Oakland, and Fremont; and the 26th most populous city in California.

950 Stony Point Road | Santa Rosa, CA 95407

Executive Summary




Concept SummaryPopeyes Louisiana Kitchen is an American chain of fried chicken fast food restaurants founded in 1972 in New Orleans, Louisiana. Often referred to as Popeyes and sometimes as Popeyes Chicken & Biscuits or Popeyes Chicken & Seafood, it was acquired by Sandy Springs, Georgia-based AFC Enterprises, originally America’s Favorite Chicken Company, in 1993. According to a company press release dated June 29, 2007, Popeyes is the second-largest “quick-service chicken restaurant group, measured by number of units”, with more than 1,800 restaurants in more than 40 states and the District of Columbia, Puerto Rico, and over 22 countries worldwide including Turkey, Northern Cyprus, Bahrain, China, Republic of Georgia, Hong Kong, Iraq, Indonesia, Jordan, Malaysia, Saudi Arabia, South Korea, Singapore, Canada, Jamaica, Guyana, Suriname, Mexico, Peru, Trinidad, Honduras, Vietnam, Panama and Costa Rica. About thirty locations are company-owned, the rest franchised. As of January 2014, Popeyes has over 2,000 restaurants worldwide according to their website.

Popeyes Mighty Good Fried Chicken was first opened in Arabi, Louisiana, a suburb of New Orleans in St. Bernard Parish, on June 12, 1972 as “Chicken on the Run”, owned by Al Copeland. As the company’s official history states, they sold “traditional mild fried chicken [but] business was slow, and the chicken team realized they’d have to sell a spicier alternative to their standard chicken recipe if they wanted to impress flavor-seeking New Orleanians. Copeland started franchising his restaurant in 1976, beginning in Baton Rouge, Louisiana and over the next ten years added approximately five hundred outlets. B.P. Newman of Laredo, Texas, acquired various franchises in Texas and surrounding states. Two hundred additional locations were added during a period of slower expansion. By 1990, Copeland Enterprises was in default on $391 million in debts, and in April 1991 the company filed for bankruptcy protection. In October 1992, the court approved a plan by a group of Copeland’s creditors that resulted in the creation of America’s Favorite Chicken Company, Inc. (AFC) to serve as the new parent company for Popeyes and Church’s. AFC went public in 2001 with initial public offering (IPO)of $142,818,479. On December 29, 2004, AFC sold Church’s to Arcapita, formerly Crescent Capital Investments, retaining Popeyes.

On June 17, 2014, Popeyes announced it had re-acquired full control of its seasonings, recipes and other proprietary food preparation techniques from Diversified Foods & Seasonings, which remained under the control of Al Copeland and his estate after the creditor sale of Popeyes to AFC. Popeyes had continued to license the seasonings, recipes and techniques from DF&S for a yearly ‘spice royalty’, before buying them outright for $43 million. DFS will remain the main supplier for Popeyes until at least 2029.

Corporate InformationHeadquarters: Sandy Springs, GA

Founded: 1972

Revenue: $206 Million (2013)

Website: www.popeyes.com

HighlightsSecond Largest Quick Service Chicken Restaurant Group

Over 1,800 Locations Nationwide

Approximately $206 Million in Revenue (2013)

Concept Summary







FINANCIAL OVERVIEW

Financial Summary

950 Stony Point Road | Santa Rosa, CA 95407 $3,200,000 | 3.75% CAP

CAP Rate: 3.75%

Building SF: 2,700

Lot Size: 0.69 Acres

Type of Ownership: Fee Simple

Tenant Name GLA Lease Begin Lease End Annual Rent Increases Options

NorCal Cajun Foods, Inc .69 Acres 5/1/2015 4/30/2035 $120,000 Rent Increases Tenant has

10% every three 5

5 years and year options

at each option to renew

Operating Summary Year 1-5 Year 6-10 Year 11-15 Year 16-20 Option 1 Option 2 Option 3

Net Operating Income $120,000 $132,000 $145,200 $159,720 $175,692 $193,261.20 $212,587.32

CAP Rate 3.75% 4.13% 4.54% 4.99% 5.49% 6.04% 6.64%

Financial Summary







LOCATION OVERVIEW

Location Maps

Aerial Photo

2. LOCATION OVERVIEW

Location Maps

All Sperry Van Ness® Offices Independently Owned & Operated.

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

www.TheKaseGroup.com9

Location Maps




Aerial Photo







DEMOGRAPHICS

Demographics Analysis

Demographics Map

Total Population

Total Number of Households

Total Number of Persons per Household

Average House Value

Average Household Income

Median Age

Median Age - Male

Median Age - Female

Total Population - White

Total Percent - White

Total Population - Black

Total Percent - Black

Total Population - Asian

Total Percent - Asian

Total Population - Hawaiian

Total Percent - Hawaiian

Total Population - Indian

Total Percent - Indian

Total Population - Other

Total Percent - Other

Total Population - Hispanic

Total Percent - Hispanic

446 2,008 2,9872.6% 2.0% 1.6%

3,174 14,583 22,18118.7% 14.3% 12.2%

950 Stony Point Road | Santa Rosa, CA 95407 For Sale | $3,000,000

* Demographic information provided by BuildOut, Inc.

5,334 36,084 66,539

3.2 2.8 2.7

$350,132 $406,354 $498,905

$59,535 $59,867 $69,832

30.0 31.9 34.528.9 30.6 33.4

33.4 33.9 36.0

386 4,854 9,2932.3% 4.8% 5.1%

458 2,993 4,4482.7% 2.9% 2.5%

55 628 7320.3% 0.6% 0.4%

11,683 72,752 134,06369.0% 71.3% 74.0%

16,930 101,982 181,154

8,412 40,737 60,13549.7% 39.9% 33.2%

1 Mile 3 Miles 5 Miles

4. DEMOGRAPHICS

Demographics Report




Demographics Analysis




4. DEMOGRAPHICS

Demographics Map




* Demographic information provided by BuildOut, LLC

950 Stony Point Road | Santa Rosa, CA 95407 Radius Map

1 Mile 3 Miles 5 Miles

Total Population 16,930 101,982 181,154

Total Number of Households 5,334 36,084 66,539

Average Household Income $59,535 $59,867 $69,832

Median Age 30.0 31.9 34.5

Demographics Map




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