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935 Wayne Ave Chambersburg, PA 17201

2 RED LOBSTER | CHAMBERSBURG, PA DOUGHERTYTEAM.COM

RED LOBSTER | CHAMBERSBURG, PA Investment Analysis............04Tenant Overview.................09Location Overview..............13

TABLE OF CONTENTS

Lead Investment Advisors

Scott WoodardSenior Associate

National Retail GroupLicense: PA RS329242

Mark KrantzSenior Associate

National Retail GroupLicense: PA RS332182License: NJ 1863254

Pavan KoneruAssociate

National Retail GroupLicense: PA RS350910

Colin RederAssociate

National Retail Group

Broker of Record: Sean BeucheLicense: PA RM424190

Derrick DoughertyFirst Vice President InvestmentsNational Retail GroupLicense: PA RS305854Ph: (215) 531-7026

Steve GarthwaiteSenior AssociateNational Retail GroupLicense: PA RS332182Ph: (215) 531-7025

Nick GeaneotesAssociateNational Retail GroupLicense: PA RS350646Ph: (215) 531-7071


RED LOBSTER | CHAMBERSBURG, PA

Chambersburg Fitness Center

935 Wayne Ave Chambersburg, PA

Wayne Plaza Shopping Center

Way

ne A

ve (5

,707

VPD

)

Way

ne A

ve (5

,707

VPD

)

Stouffer Ave (7,382 VPD)Stouffer Ave (7,382 VPD)

Chambersburg Area High School(2,112 Students Enrolled)

WellSpan Chambersburg Hospital(285 Staffed Beds)



I N V E S T M E N T A N A LY S I S01



LEASE SUMMARYTenant Red Lobster

Guarantor Corporate

Lease Type NNN

Gross Leasable Area 6,095 SF

Lot Size 2.06 Acres

Year Build / Renovated 1991 / 2012

Roof and Structure Tenant is Responsible

Base Lease Term (25) Year Base Term

Lease Commencement August-14

Lease/ Rent Expiration July-39

Term Remaining (18.5+) Years

Rent Increases 2% Annual Increases

Estoppel Certificate to be provided within (20) days

Options Four, (5) Year Options

Option Notice (12) Months prior to Lease expiration

ANNUALIZED OPERATING DATATerm Dates Base Rent PSF Increase Cap Rate

Year 7 (Current) 8/1/2020 - 7/31/2021 $196,564 $32.25 - 6.00%

Year 8 8/1/2021 - 7/31/2022 $200,496 $32.90 2% 6.12%

Year 9 8/1/2022 - 7/31/2023 $204,505 $33.55 2% 6.24%

Year 10 8/1/2023 - 7/31/2024 $208,596 $34.22 2% 6.37%

Year 11 8/1/2024 - 7/31/2025 $212,767 $34.91 2% 6.49%

Year 12 8/1/2025 - 7/31/2026 $217,023 $35.61 2% 6.62%

Year 13 8/1/2026 - 7/31/2027 $221,363 $36.32 2% 6.76%

Year 14 8/1/2027 - 7/31/2028 $225,791 $37.05 2% 6.89%

Year 15 8/1/2028 - 7/31/2029 $230,306 $37.79 2% 7.03%

Year 16 8/1/2029 - 7/31/2030 $234,912 $38.54 2% 7.17%

Year 17 8/1/2030 - 7/31/2031 $239,611 $39.31 2% 7.31%

Year 18 8/1/2031 - 7/31/2032 $244,403 $40.10 2% 7.46%

Year 19 8/1/2032 - 7/31/2033 $249,291 $40.90 2% 7.61%

Year 20 8/1/2033 - 7/31/2034 $254,277 $41.72 2% 7.76%

Year 21 8/1/2034 - 7/31/2035 $259,362 $42.55 2% 7.92%

Year 22 8/1/2035 - 7/31/2036 $264,550 $43.40 2% 8.08%

Year 23 8/1/2036 - 7/31/2037 $269,841 $44.27 2% 8.24%

Year 24 8/1/2037 - 7/31/2038 $275,237 $45.16 2% 8.40%

Year 25 8/1/2038 - 7/31/2039 $280,742 $46.06 2% 8.57%

Option Terms

Years 26-30 (Option 1) 8/1/2039 - 7/31/2044 Fair Market Value -




$3,276,067PRICE

6.00%CAP

$196,564RENT

INVESTMENT OVERVIEW



About The Investment:• Corporately Guaranteed Lease with over (18.5) Years Remaining on Term • Absolute Triple Net (NNN) Lease with Zero Landlord Responsibilities • Attractive Rental Increases of Two Percent (2%) Annual Escalations & Stable NOI Growth• Proven Location as demonstrated by the Site’s Operating History since 1991

About The Location: • Centralized Location - Just over two miles away from Downtown Chambersburg, PA (21.5K+

Population)• Outparcel to Giant Anchored Center - Featuring National, Credit Tenants including Verizon,

Dollar Tree, the UPS Store, & others• Real Estate Fundamentals - Red Lobster sits on a large 2.06 Acre Parcel at the signalized

intersection of Wayne Avenue & Stouffer Avenue with Combined Average Traffic Counts exceeding 13,000 Vehicles Per Day

• Dense, Stable Middle-Class Demographics - Average Household Income is $73K & and a Population of 51K Residents within a 5-Mile Trade Radius

• Major Economic Drivers - Subject Site is located in a dense industrial area – featuring distribution centers for companies including Kmart, Ulta, Target, & Staple’s

About The Tenant/Brand:• Background - The Company was founded in 1968 and currently operates 749 +/- restaurants

throughout the United States and Canada and including franchised restaurants in international markets

• Tenant Status - Red Lobster is the largest seafood restaurant concept in the world and is an iconic full-service brand with broad demographic appeal and a significant advertising budget (2nd largest in casual dining)

• Track Record - The company generates $2.5 Billion in Revenue and is the 6th largest casual dining concept in North America

• Company Leadership - Red Lobster is led by an experienced Management Team with a history of success leading the brand (Average 27 years experience across Executive Team)

INVESTMENT HIGHLIGHTSPRICE: $3,276,067 | CAP: 6.00% | RENT: $196,564



Tenant RED LOBSTER RESTAURANTS, LLC

Guarantor Corporate

Square Footage 6,095 SF

Commencement Date August 1, 2014

Expiration Date July 31, 2039

Initial Term (25) Year Base Term

Option Notice Tenant to provide notice (12) months prior to Lease expiration

Estoppel/SNDA Tenant & Landlord to provide certificate within (20) days of request

Taxes Tenant is responsible for Real Estate Taxes

Insurance Tenant is responsible for Insurance Expenses

CAM Tenant is responsible for CAM Expenses

Utilities Tenant is responsible for Utilities Expenses

Roof & Structure Tenant is responsible for repairs & replacement of Roof and Structure

HVAC (Maint & Replacement) Tenant is responsible for HVAC repairs & replacements

Permitted Use The Property may be used solely for the operation of the Permitted Concept

Financial Reporting Tenant to provide prior fiscal year's Balance Sheet, Profit & Loss Statement, and current Income Statement upon Landlord's request

Assignment Note Tenant shall not assign Lease without Landlord's consent; in event of assignment, Tenant will remain liable for its obligations under this Lease

LEASE ABSTRACT



SITE OVERVIEW

2012YEAR RENOVATED

6,095 SFRESTAURANT AREA

2.06 AcresLAND AREA

935 Wayne AvenueChambersburg, PAADDRESS

13,089 VPDCOMBINED VPD

100+/- PARKING SPACES

MAJOR ROADWAYS Wayne Avenue: 5,707 VPDStouffer Avenue: 7,382 VPDPA I-81: 45,781 VPD

Way

ne A

ve (

5,70

7 V

PD

)W

ayne

Ave

(5,

707

VP

D)

Stouffer Ave (7,382 VPD)Stouffer Ave (7,382 VPD)



T E N A N T D E S C R I P T I O N02



TENANT DESCRIPTION

Orlando, Florida 1968 749 RedLobster.comHeadquarters Founded Total # of Locations Website

Red Lobster is the largest seafood restaurant concept in the world and is an iconic

full service brand with broad demographic appeal and significant advertising budget

Red Lobster is led by an experienced management team with a history of success

leading the brand(average 27 years experience across executive team) The company

generates 2.5 billion in revenue and is the 5th largest casual dining concept in North

America Red Lobster was recently acquired by Thai Union Group. The company has

operations across most of the United States, as well as in China, Ecuador, Guam,

Hong Kong, Japan, Malaysia, Mexico, Philippines, Puerto Rico, Qatar, and the United

Arab Emirates; as of June 23, 2020, the company had 749 locations worldwide.

Red Lobster Overview749

Locations

#1SeafoodChain

12Countries

$2.5B+Revenue

U.S. Locations



CONCEPT OVERVIEW

Strong Market Position:• Red Lobster is the largest seafood restaurant concept in the

world and the 6th largest casual dining concept in the United States with over $2.5 billion in annual sales and 700+ restau-rants.

• The Company is the category killer in the seafood casual dining space, holding almost 50% market share.

The History of Red Lobster

1968 FRESH SEAFOOD FOR EVERYONEBill Darden opens the first Red Lobster in Lakeland, Florida.

1970BUSINESS BOOMSRed Lobster catches the attention of General Mills. Backed by their resources, Red Lobster restaurants rapidly multiply.

1983 O CANADAWe open our first Canadian restaurant in Ontario.

1984LOBSTER LOVERS, REJOICEWe have our first Lobsterfest — and a Valentine’s Day tradition is born.

1992BEHOLD BISCUIT MANIACheesy garlic goodness comes together to create our legendary Cheddar Bay Biscuits™.

1995RED LOBSTER CHARTS A NEW COURSEGeneral Mills spins-off its restaurant division as Darden Restaurants, Inc.

200335TH ANNIVERSARYWe celebrate our 35th anniversary of serving fresh, delicious seafood

2004 LOVE AT FIRST SHRIMPOur Endless ShrimpTM event launches and it’s a huge success.

2006BRING ON THE FRESHNESS“Today’s Fresh Fish” menu makes its debut, bringing fresh, regional seafood to Red Lobsters everywhere.

2008GET FIRED UPWe bring wood-fire grills into our kitchens and train Certified Grill Masters to let the natural flavors of our seafood take center stage

201345TH ANNIVERSARYWe celebrate our 45th anniversary and operate more than 700 locations worldwide

2014 PARTNERING TO SET SEAFOOD STANDARDS Acquisition by Golden Gate Capital

201850TH ANNIVERSARYWe celebrate our 5oth anniversary of serving fresh, delicious seafood

2020 PARTNERING TO SET NEW STANDARDS Acquisition by Thai Union Group

Iconic Brand With Unparalleled Loyalty:• Over $320 million invested in remodels covering >90% of

restaurants over the past 9 years.• $1.4 billion in overall capital expenditure investment over the

past 11 years.• New Bar Harbor format has strong appeal across customer base.



THAI UNION, INVESTOR GROUP LED BY INTERNATIONAL RESTAURANT EXECUTIVES, AND RED LOBSTER

MANAGEMENT ACQUIRE RED LOBSTER

INFORMATIONAL ARTICLE | CLICK TO READ

STRATEGIC PARTNERSHIP

OUR MISSION:To be the seafood industry’s leading agent of change, making a real positive difference to our consumers, our customers and the way the category is managed.

OUR GOAL:We are committed to “Healthy Living, Healthy Oceans.” With a focus on health and wellbeing across our group’s portfolio, we will strengthen the growth and profitability of our core businesses and expand into new, attractive areas. We will continue to lead the industry on sustainability while attracting and retaining talent.

Thai Union’s vast selection of shelf-stable, chilled, and frozen foods and related products makes mealtimes delicious, dynamic, easy, and healthy for millions of families worldwide. Our portfolio of consumer-favored brands across North America, Europe, Asia, and the Pacific has a global reach, with product developments Informed by local insights and market preferences.

Who We Are

• Founded In 1977, Thai Union Has A Rich History Of Commitment To Seafood Expertise And Innovation Around The World.

• Thai Union Group, Based Out Of Thailand With Offices North America, Europe, The Middle-East And Asia, Currently Serves As A Main Supplier Of Seafood For Red Lobster’s Across The World.

• Thai Union Group Has Been Listed On The Stock Exchange Of Thailand (Set) Since November 1994

• Prior To The Red Lobster Acquisition, Thai Union Group Reported Annual Sales Of Over $4.1 Billion

• Tug Has A Long, Successful Track Record And Significant Experience Servicing Consumers, Supermarkets, Restaurants, Hospitality And Others.



L O C AT I O N O V E R V I E W03




Wayne Plaza Shopping Center

Chambersburg Area High School(2,112 Students Enrolled)

WellSpan Chambersburg Hospital(285 Staffed Beds)

Southgate Shopping Center

Chambersburg Area Middle School(1,120 Students Enrolled) Franklin Shopping Center

Wayne Ave (5,707 VPD)

Wayne Ave (5,707 VPD)

PA I-

81 (4

5,78

1 VP

D)

PA I-

81 (4

5,78

1 VP

D)



LOCATION OVERVIEW

TOP 10 EMPLOYERS (FRANKLIN COUNTY)

51,094Population

within a 5 mile radius

$73,408AVG. HH Income


SCHOOLS & COLLEGES (FRANKLIN COUNTY)

School Name Enrollment

Chambersburg Area Senior High School 2,096

Wilson College 1,620

Waynesboro Area Senior High School 1,280

Penn State Mont Alto 1,240

Shippensburg Area Senior High School 1,034

Greencastle-Antrim Senior High School 922

Chambersburg Area Career Magnet School 679

James Buchanan High School 679

Shalom Christian Academy 471

Cumberland Valley Christian School 443

20,564Households




RADIUS 3 MILE 5 MILE 10 MILES

Population 30,378 51,094 92,541

Households(#) 12,358 20,564 36,582

Average HH Income $67,119 $73,408 $76,036

Median HH Income $54,247 $59,096 $62,818

Chambersburg, PA

REGIONAL MAP

PHILADELPHIA160 Miles to Philadelphia

NEW YORK

WASHINGTON

BALTIMORE


220 Miles to New York

90 M

iles to Baltimore

100 Miles to

Washington, DC



Philadelphia, PA2005 Market Street #1510Philadelphia, PA 19103P: 215.531.7000

King Of Prussia, PA200 N. Warner RoadKing Of Prussia, PA 19406P: 215.531.7000

Our Locations:New York, NY260 Madison Avenue5th FloorNew York, NY 10016

NO N -END ORS E MENT AND DISCLAIMER NOTICENON -EN DO RSEMENTSMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. 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 Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

DISCLAIM ERThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified 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. Marcus & Millichap 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, 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. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved.

Marcus & Millichap Real Estate Investment Services of Seattle, Inc. License: RB062197C

Steve GarthwaiteSenior AssociateLicense: PA RS332182(215) 531-7025

Derrick DoughertyFirst Vice President InvestmentsLic: PA RS305854(215) 531-7026

Mark KrantzSenior AssociateLic: NJ 1863254 | PA RS336064(215) 531-7056

Scott WoodardSenior AssociateLic: PA RS329242(215) 531-7058

Colin RederAssociate(215) 531-7057

Pavan KoneruAssociateLic: PA RS350910(215) 531-7068

Nick GeaneotesAssociateLic: PA RS350646(215) 531-7071

Broker of Record: Sean BeucheLicense: PA RM424190

EXCLUSIVELY OFFERED BY:

DERRICK DOUGHERTY(215) 531-7026 | PA [email protected]

www.DoughertyTeam.com

SCOTT WOODARD(215) 531-7058 | PA [email protected]

MARK KRANTZ(215) 531-7056 | NJ [email protected]

STEVE GARTHWAITE(215) 531-7025 | PA [email protected]

PAVAN KONERU(215) 531-7068 | PA [email protected]

NICK GEANEOTES(215) 531-7071 | PA [email protected]

COLIN REDER(215) [email protected]

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