Dairy EXCLUSIVE Queen LISTING Grill & Chill Freeport, FL Offering Memorandum

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1 Dairy EXCLUSIVE Queen LISTING Grill & Chill Freeport, FL Dairy Queen Grill & Chill Freeport, FL Representative Photo DOUG ARONSON MANAGING DIRECTOR (954) CALKAIN.COM 1

2 Financial Summary US Hwy 331 S Freeport, FL Asking Price $2,191,305 Cap Rate 5.75% Net Operating Income (NOI) $126,000 Investment Highlights Brand new construction Publix grocery store outparcel Located on Florida s Emerald Coast 15-year absolute NNN lease Rare 1.5% annual rent increases Full service Grill & Chill with drive-thru Guarantor: franchisee/personal Award winning DQ operator Florida has no state income tax Rent/Month $10,500 Rentable Square Feet 2,983+/- SF Land Area 0.66+/- Acres Tenant Name Dairy Queen Guarantor Franchisee/Personal Ownership Type Fee Simple Lease Type Absolute NNN Landlord Responsibilities None Store Open 2017 Lease Term Remaining 15 Years Rent Commencement December 20, 2017 Lease Expiration December 31, 2032 Increases 1.5% Annually Options Two (2), Five (5) Year Rent Schedule Term Increases Annual Rent Monthly Rent Year 1 - $126,000 $10,500 Year 2 1.5% $127,890 $10,657 Year 3 1.5% $129,808 $10,817 Year 4 1.5% $131,755 $10,979 Year 5 1.5% $133,731 $11,144 Year 6 1.5% $135,737 $11,311 Year 7 1.5% $137,773 $11,481 Year 8 1.5% $139,839 $11,653 Year 9 1.5% $141,937 $11,828 Year % $144,066 $12,005 Year % $146,227 $12,185 Year % $148,420 $12,368 Year % $150,647 $12,553 Year % $152,906 $12,742 Year % $155,200 $12,933 2

3 About Dairy Queen Dairy Queen, often abbreviated DQ, is a chain of soft serve ice cream and fast food restaurants owned by International Dairy Queen, Inc, a subsidiary of Berkshire Hathaway. Franchise Times estimates DQ sales worldwide at more than $3 billion, ranking it the 32nd largest franchise chain of the Top 200 Franchise Chains list. History Tenant Overview The founders of the Dairy Queen system were men and women who introduced a new kind of dessert treat and, in the process, developed the foundation of the franchising industry. The history of the DQ system is a story of a unique product that created an industry. A Story of Sweet Success For more than 70 years, the DQ system s recipe for success has been simple. It s been a combination of hardworking people who own and operate restaurants, and great-tasting food and tempting treats served in our establishments. Their phenomenal story began with the 10-cent sale of a then unnamed product on August 4, 1938, in Kankakee, Illinois. A father and son partnership in Green River, Illinois, had been experimenting with a soft frozen dairy product for some time. They contacted Sherb Noble, a good friend and customer, who agreed to run the all you can eat trial sale at his walk-in ice cream store. Within two hours, he dished out more than 1,600 servings of the new dessert. Today, the DQ system is one of the largest fast food systems in the world, with more than 6,000 restaurants in the United States, Canada and 18 other countries. Although much has changed in the world and in the DQ system through the years, one constant has remained: DQ restaurants are still, and always have been, the place to find kids sports teams celebrating a victory, business people on their lunch break and families taking time out to enjoy great food and soft serve treats. And success for the DQ system is as simple today as it was in Satisfied customers lead to successful restaurants. Each owner of their independently owned and operated establishments worldwide is committed to nothing less than the Fan Food not Fast FoodTM slogan. 3

4 Location Overview Distance To: Fort Walton Beach Pensacola Tallahassee Atlanta, GA 37 miles 92 miles 133 miles 292 miles 85 Atlanta, GA 75 Subject Site Pensacola Fort Walton Beach 10 Freeport Tallahassee 4

5 16380 US Hwy 331 S Freeport, FL Dairy Queen Grill & Chill Freeport, FL Freeport Middle School FREEPORT 331 E Main Street 14,700 VPD Freeport Regional Sports Complex US 331 S 11,500 VPD Subject Site 5

6 16380 US Hwy 331 S Freeport, FL Dairy Queen Grill & Chill Freeport, FL Freeport Pet Clinic E Main Street 14,700 VPD Brica Inc Coming Soon Subject Site US 331 S 11,500 VPD 6

7 Site Plan US 331 S 11,500 VPD 7

8 Proposed Design 8

9 Demographics Radius 3 Miles 7 Miles 10 Miles Population 2017 Population 3,989 8,120 13, Population 4,766 9,497 16, Annual Rate 4.85% 3.07% 3.48% Annual Rate 3.62% 3.18% 3.41% 2017 Male Population 50.2% 50.7% 50.7% 2017 Female Population 49.8% 49.3% 49.3% 2017 Median Age Households 2017 Total Households 1,617 3,238 5, Total Households 1,926 3,774 6, Annual Rate 4.83% 2.96% 3.38% Annual Rate 3.56% 3.11% 3.34% 2017 Average Household Size Median Household Income 2017 Median Household Income $50,533 $48,066 $48, Median Household Income $57,463 $54,191 $54, Annual Rate 2.60% 2.43% 2.62% Average Household Income 2017 Average Household Income $65,910 $62,921 $64, Average Household Income $77,221 $73,713 $74, Annual Rate 3.22% 3.22% 3.14% Per Capita Income 2017 Per Capita Income $26,490 $25,435 $26, Per Capita Income $30,913 $29,676 $30, Annual Rate 3.14% 3.13% 3.06% 9

10 Market Overview Freeport, FL Freeport is a city in Walton County, Florida and began about 1830 when settlers were attracted to the natural harbor of LaGrange Bayou located near the eastern end of Choctawhatchee Bay and the mouth of the Choctawhatchee River. In Freeport Florida, a good number of residents work on Eglin Air Force Base, as military personnel, contractors or civil service, but the lions share work south of the Bay in South Walton County. Freeport Florida is literally the crossroads between North and South Walton County. It is advantageously situated and within driving proximity to Tallahassee, Pensacola, Montgomery, Ft. Walton Beach, and Panama City. It is within an hour of the Okaloosa County Regional Airport, the Bay County Regional Airport the Destin Municipal Airport and the DeFuniak Springs Municipal Airport. It is a half-hours drive from the South Walton Beaches and golf courses. Just south of Freeport are some of the most spectacular and beautiful beaches in the world. With sugar white sand, clear emerald green waters, towering sand dunes and more, here you can walk for miles, swim, paddleboard, fish, and more, while taking in the most gorgeous scenery around. Enjoy the beach communities, eclectic shopping, or simply relax while listening to the waves break at your feet. Freeport Homes Grayton Beach State Park Windswept Dunes Golf Course 10

11 About Calkain Who Are We? Calkain Companies LLC is a national commercial real estate firm that provides consulting and brokerage services to both private and institutional clientele with an expertise on triple net lease investments. We pride ourselves on being a world class leader by providing our clients a full array of commercial real estate investment brokerage and asset management solutions, including advisory, research, estate planning and wealth management. We have built solid relationships throughout our decades of experience and innovation, implementing long-term allocation within the context of each client s particular risk tolerance and identifying how best to acquire and dispose of income producing properties for each entities specific set of investment criterion. At Calkain, our foresight and past performance are leading the net lease investment industry. Our History Like most success stories, Calkain was formulated from humble beginnings. Jonathan W. Hipp, President and CEO, took the initiative to build upon his decades of experience and performance and left a large international brokerage firm to become an independent and innovative leader within the triple net lease investment community. Armed with a sole employee and a single office, the firm has grown exponentially since its infancy in $11.5 Billion in Closed Transactions With the growth in staff, seasoned professionals have been attracted to Calkain s model of innovation, entrepreneurship and the fostering of long-lasting and meaningful relationships. Industry experts have joined Calkain in the hopes of implementing the skills they have honed in complementary aspects of real estate investment. Through a tremendous endeavor, tireless hours have been committed to continually prove that Calkain is America s Net Lease Company. Its countless accolades received from the world s leading business publications, including Forbes, Fortune and the New York Times have confirmed that Calkain is a true leader in triple net lease investing services. Client Testimonial USRA has worked with Calkain on numerous occasions. They have always been meticulous in their work ethic, providing superior service and extremely prompt attention to our needs. I highly recommend them. - Jack Genende, Partner U.S. Realty Advisors, LLC. (USRA) $350 Million in Active Listings DOUG ARONSON MANAGING DIRECTOR (954) daronson@calkain.com CALKAIN.COM 11

12 Contact Us Corporate Headquarters Washington, DC Worldgate Drive Suite 150 Herndon, VA T: (703) F: (703) Fort Lauderdale 200 SW 1st Avenue Suite 880 Fort Lauderdale, FL T: (813) Atlanta 111 Village Parkway, Building 2 Suite 202 Marietta, GA T: (404) Boston 101 Federal Street Suite 1900 Boston, MA T: (617) CALKAIN.COM DISCLAIMER: The information contained in this document is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Calkain and its subsidiaries, and should not be made available to any other person or entity without the written consent of Calkain. This document has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property(s). The information contained herein is not a substitute for a thorough due diligence investigation. Calkain and its subsidiaries have not made any investigation, and make no warranty or representation, with respect to the income or expenses for the subject property(s), the future projected financial performance of the property, the size and square footage of the property(s) and improvements, the presence or absence of contaminating substances, PCB s or asbestos, 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 occupancy of the subject property(s). The information contained in this document has been obtained from sources we believe to be reliable; however neither Calkain and its subsidiaries nor the Seller have verified, and will not verify, any of the information contained herein, nor has Calkain and its subsidiaries or the Seller conducted any investigation regarding these matters and make 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.