ground lease for sale

www.bouldergroup.com

NET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERING

Sonic (Ground Lease)Sonic (Ground Lease)Sonic (Ground Lease)Sonic (Ground Lease) 3290 Olentangy River Road3290 Olentangy River Road3290 Olentangy River Road3290 Olentangy River Road Columbus, OH 43202Columbus, OH 43202Columbus, OH 43202Columbus, OH 43202

NET LEASED INVESTMENT OFFERING


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Confidentiality & Disclaimer

Executive Summary

Property Overview

Aerial

Site Plan

Map

Tenant Profile

Demographic Comparison Report

Location Overview

Contact Information

TABLE OF CONTENTS

TABLE OF CONTENTSTABLE OF CONTENTSTABLE OF CONTENTSTABLE OF CONTENTS



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 The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group. This Offering Memorandum 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. The Boulder Group has not made any investigation, and makes no warranty or representation. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder 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.

CONFIDENTIALITY & DISCLAIMER

CONCONCONCONFIDENTIALITY & DISCLAIMERFIDENTIALITY & DISCLAIMERFIDENTIALITY & DISCLAIMERFIDENTIALITY & DISCLAIMER



The Boulder Group is pleased to exclusively market for sale a single tenant Sonic restaurant ground lease property located

in Columbus, Ohio. The property is located on a 51,199 square foot parcel in front of a free standing Kohl’s store and

adjacent to a 182-unit apartment complex. The Ohio State University campus is less than one-half mile from the property,

home to over 64,000 students and employs over 27,000 people. Additionally, Riverside Methodist Hospital, the largest

member hospital of OhioHealth healthcare system, is located one-quarter mile north of the property. The lease features a

10% rental escalation in November 2018.

The property is located along Olentangy River Road, a primary north-south thoroughfare in the area which travels south

through the Ohio State University campus. Olentangy River Road runs parallel to Olentangy Freeway, which experiences

traffic volumes in excess of 71,000 vehicles per day creating constant traffic near the site. There are numerous national

retailers along Olentangy River Road including Kohl’s, Kroger, Big Lots and PNC Bank. There are multiple hotels within the

immediate area including Hilton Garden Inn, Holiday Inn Express and Fairfield Marriott Inn, which provide the closest

lodging to the university. The University of Ohio State campus and numerous student housing apartments are located less

than one-half mile from the property, and the population is in excess of 311,000 within five miles of the property.

Sonic’s original ground lease term was for 15 years and expires in October 2023 and has a 10% escalation in November

2018. The ground lease features three 5-year renewal options with 10% rental escalations. Sonic is a publicly traded

company on the NASDAQ (SONC) and Houchens Industries inc. is a multi-billion dollar private company.

• Tenant’s parent company, Houchens Industries inc., has annual revenue of $3 billion

• Located within the Columbus MSA

• 10% rental escalation in the primary term in 2018 and in each renewal option

• Zero landlord responsibilities

• Less than one-half mile from Ohio State University campus (64,000 students)

• One-quarter mile from Riverside Methodist Hospital

• Nearby retailer include Kohl’s, Kroger, Big Lots and PNC Bank

• Located on the hard corner of a signalized intersection

• Close proximity to numerous hotels (closest lodging to the university)

• Less than two miles from Interstate 71 (54,625 VPD)

• Over 311,000 people living within five miles of the property

INVESTMENT HIGHLIGHTS

EXECUTIVE SUMMARY

EXECUTIVE SUMMARYEXECUTIVE SUMMARYEXECUTIVE SUMMARYEXECUTIVE SUMMARY



Price: $964,615

Cap Rate: 6.50%

Rent Schedule: NOI Escalation Date

$ 62,700 1

$ 68,970 11/1/2018

$ 75,867 11/1/2023 (Option 1)

$ 83,454 11/1/2028 (Option 2)

$ 91,799 11/1/2033 (Option 3)

Renewal Options: Three 5-year

Lease Commencement Date: November 1, 2008

Lease Expiration Date: October 31, 2023

Tenant: Sonic

Guarantor: Houchens Restaurants, LLC 2

Year Built 2008

Lease Type: NNN Ground Lease

Rentable Square Feet: 1,620

Land Size: 1.17 acres

(1) Seller will pay the differential between the current rent of $57,000, until the rent escalates in November 2013 to $62,700.

(2) Houchens Restaurants LLC’s parent company, Houchens Industries, inc., has annual revenue of $3 billion.

PROPERTY OVERVIEW

PROPERTY OVERVIEWPROPERTY OVERVIEWPROPERTY OVERVIEWPROPERTY OVERVIEW



AERIALAERIALAERIALAERIAL

AERIAL



SITE PLANSITE PLANSITE PLANSITE PLAN

SITE PLAN



MAP

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Sonic: www.sonicdrivein.com

Number of Locations: 3,561

Stock Symbol: SONC (NASDAQ)

Houchens Industries, inc www.houchensindustries.com

Number of Employees: 16,000+

Sonic (NASDAQ: SONC) Sonic (NASDAQ: SONC) Sonic (NASDAQ: SONC) Sonic (NASDAQ: SONC) is an American drive-in fast-food restaurant chain based in Oklahoma City, Oklahoma. In 2011, Sonic was ranked number 10 of the top 50 quick-service and fast-casual restaurant brands in the United States by QSR Magazine. Sonic operates over 3,500 restaurants in 43 U.S. states and serves over 3 million customers per day. Sonic is known for their unique use of carhops on roller skates serving their drive-in customers.

Houchens Restaurants, LLC Houchens Restaurants, LLC Houchens Restaurants, LLC Houchens Restaurants, LLC is the operator and guarantees the lease. Houchens Restaurants, LLC is a wholly owned subsidiary of Houchens Industries, inc. Houchens Industries, inc. was founded in 1917 and is now among the largest 100% employee-owned companies in the United States. Houchens has businesses in retail grocery and convenience stores, quick-to-service restaurants, insurance, stock brokerage and several others businesses operating in over 30 countries, including over 30 Sonic restaurants. Houchens Industries is ranked in the top 200 of America’s largest private companies and has revenue of nearly $3 billion annually. Today, Houchens Industries is wholly owned by its 16,000 employees and is headquartered in Bowling Green, Kentucky.

TENANT PROFILE

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PopulationPopulationPopulationPopulation 1111----mi.mi.mi.mi. 3333----mimimimi 5555----mimimimi

Total Population 14,290 147,554 311,660 Total Households 7,156 63,349 135,509

IncomeIncomeIncomeIncome

Median Household Income $39,798 $39,370 $39,492 Average Household Income $53,276 $57,530 $57,982

DEMOGRAPHIC COMPARISON REPORT

DEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORT



LOCATION OVERVIEW

LOCATION OVERVIEWLOCATION OVERVIEWLOCATION OVERVIEWLOCATION OVERVIEW

Columbus Columbus Columbus Columbus is the largest city in the state of Ohio and the county seat of Franklin County. At the time of the 2010 U.S. Census Columbus had a population of 787,000, making it the most populous city in Ohio. Columbus has a diverse economy based on education, government, insurance, banking and energy. Columbus is most notably home to The Ohio State University. The Ohio State University is one of the world’s largest universities with a student population of over 64,000. Columbus has also emerged as a leader in the technology industry and is home to the world’s largest private research and development foundation, Battelle Memorial Institute. In 2009, BusinessWeek named Columbus the best place in the country to raise a family. Additionally, Columbus was ranked as America’s 20th best city by Bloomberg BusinessWeek.

Columbus is home to five Fortune 500 corporations including Nationwide Mutual Insurance Company, American

Electric Power, Limited Brands, Momentive Specialty Chemicals and Big Lots. Other major employers in Columbus

include JP Morgan Chase, Huntington Bancshares and Wendy’s. Columbus is most recognized as the home to The

Ohio State University. Ohio State University is one of the largest universities in the world with a student population of

over 64,000 and over 27,000 employees.

www.cityofcolumbus.orgwww.cityofcolumbus.orgwww.cityofcolumbus.orgwww.cityofcolumbus.org



666 Dundee Road Suite 1801 Northbrook, IL 60062

Randy Blankstein President 847.562.0003 [email protected]

Jimmy Goodman Partner 847.562.8500 [email protected]

CONTACT INFORMATION

CONTACT INFORMATIONCONTACT INFORMATIONCONTACT INFORMATIONCONTACT INFORMATION

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