Applebee’s125 Rainbow Lake RoadBoiling Springs (Spartanburg), SC

• Wal-Mart Supercenter Outparcel

• Newly Upgraded Interior

• Strong Traffic Counts – 25,700VPD

• Yearly Rent Increases Starting at 1.75%

• 2.06 Acres | 113 Parking Spaces

• Primary Retail Corridor

Kevin D. Shelburn

216 N. Coast HWY 101 | Encinitas, CA 92024

760.452.2405 (o) | 805.637.3447 (c)

kevin@1031nnnsearch.com

Auto Dealerships

Southbound

8% Cap Rate | $1,922,823

gas bar

Family Physician Center

High School(9th Grade)

Investment Summary

Price: $1,922,823

Cap Rate: 8.0%

NOI: $153,825.80 (in 7/2011)

Building Area: 4,773sf

Land Area: 2.06 acres / 89,734sf

Ownership: Fee Simple

Price per SF: $402.85

Rent per SF: $32.22

Lease Type: Absolute NNN

Initial Term: 20 Years

Rent Commencement: 6/28/2004

Lease Expiration 6/28/2024 (13+ years)

Bumps: 1.75% annually until 6/28/2020

1.25% annually from 7/2019 - 6/2024

Options: 3(5) Year w/ 1.25% annual increases

*Tenant: Apple J – 33 Locations2009 Franchisee of the Year

* Tenant Financials available once an agreed upon LOI is reached. Tenant is profitable and has increased sales from 2010 from 2009.

Rent Schedule

Lease Year Dates Rent % Increase

8 7/2011 - 6/2012 $153,825.80 1.75%

9 7/2012 - 6/2013 $156,517.75 1.75%

10 7/2013 - 6/2014 $159,256.81 1.75%

11 7/2014 - 6/2015 $162,043.81 1.75%

12 7/2015 - 6/2016 $164,879.58 1.75%

13 7/2016 - 6/2017 $167,764.97 1.75%

14 7/2017 - 6/2018 $170,700.86 1.75%

15 7/2018 - 6/2019 $173,688.12 1.75%

16 7/2019 - 6/2020 $175,859.22 1.25%

17 7/2020 - 6/2021 $178,057.46 1.25%

18 7/2021 - 6/2022 $180,283.18 1.25%

19 7/2022 - 6/2023 $182,536.72 1.25%

20 7/2023- 6/28/2024 $184,818.43 1.25%

Total 13 Years $2,210.232.17

ROI 7/2011 – 6/28/2024 15%

Investment Summary & Rent Schedule

Dine Equity is the parent company of Applebee’s and has more than 2,000 restaurants in 49 states, 16 countries and one U.S. territory. Applebee’s is the world’s largest casual dining brand. Founded in 1980 in Atlanta, Georgia, Applebee’s was purchased in 2007 by IHOP Corp and subsequently changed their name to Dine Equity.

Tenant: Apple J | 2009 Franchisee of the Year | Local Operator from Greenville, SC (30 miles)Locations: 33 Sales: 2010 | $1,607,157 | 9.24% rent to sales

2009 | $1,527,847 | 9.56% rent to sales2008 | $1,592,882 | 8.57% rent to sales

Dine EquityS&P Rating: B as of Q1 2011Moody’s: B2 StableNet Worth: $122+ MillionSymbol: DIN (NYSE)

Net Leased Real Properties is pleased to present an Applebee’s restaurant with approximately 13 years remaining on the base term and 3(5) year

renewal options. The lease provides for 1.75% annual increases until June of 2019 when it re-adjusts to 1.25% annually, including the bumps.

The subject property is located just off the main thoroughfare, Boiling Springs Road (State Hwy 9) directly in front of a Wal-Mart Supercenter

and across from a Lowe’s Home Improvement. State Hwy 9 generated traffic counts of 25,700 in 2009 and has experienced a vast amount of

growth from national retailers in the last 5 years. A Lowe’s, Chick-Fil-A, Shell Gas Station, O’Reilly’s and AutoZone are just some of the new

additions. A McDonald’s is also underway at the neighboring Bi-Lo center where they have city approval and expect to begin construction this

summer.

The building sits on a large lot of 2.06 acres and is assessable from the Wal-Mart as well as Rainbow Lake Rd, where the Lowe’s is located.

Despite a strong national retailer presence there are no direct competitors of Applebee’s such as Chili’s, Denny’s, TGIF, Cracker Barrel or Ruby

Tuesday within the immediate corridor. The tenant keeps the property clean inside and out. Outside their door is an “A” rating by the local health

department. The tenant has also displayed their commitment to the site by upgrading the interior at their own expense six months ago. New

tables, counter tops, bar stools, booths and wall paper were added. Additionally, in February of this year the tenant hired a local contractor to

check on and repair all the decorative lights and logos in and around the property, including the pylon sign.

Boiling Springs is an unincorporated area of Spartanburg, SC. There are over 172,000 residents within 5 miles and estimates project a 5%

increase by 2016. The average household income within 5 miles is $55,500.

Interior/Exterior Photographs

Upgraded Interior: New booths, tables and chairs

Upgraded Interior: New booths & bar top

2.06 Acres w/ 113 Parking SpacesCarside-To-Go Section (left)

Pylon Sign off Rainbow Springs Dr.

Neighboring Properties

Kevin D. Shelburn

216 N. Coast HWY 101 | Encinitas, CA 92024

760.452.2405 (o) | 805.637.3447 (c)

kevin@1031nnnsearch.com

Subject Property

Regional Map

Atlanta

Charleston

Charlotte

Spartanburg

Raleigh

FayettevilleWilmington

Augusta

Macon

Knoxville

Athens

Pop-Facts: Demographic Quick Facts 2011 Report

Radius 1: 125 RAINBOW LAKE RD, BOILING SPRINGS, SC 29316-5743, aggregate

Radius 2: 125 RAINBOW LAKE RD, BOILING SPRINGS, SC 29316-5743, aggregate

Radius 3: 125 RAINBOW LAKE RD, BOILING SPRINGS, SC 29316-5743, aggregate

Radius 3Radius 2

0.00 - 10.00 miles0.00 - 5.00 miles0.00 - 1.00 miles

% % %Radius 1Description

Population

181,22048,5823,594 2016 Projection

172,51145,1373,244 2011 Estimate

151,98235,9102,225 2000 Census

140,42028,7081,527 1990 Census

8.23%25.09%45.71% Growth 1990 - 2000

Households

71,47018,1751,345 2016 Projection

67,94416,8491,210 2011 Estimate

59,17513,180815 2000 Census

52,98710,480545 1990 Census

11.68%25.76%49.54% Growth 1990 - 2000

2011 Est. Population by Single Classification Race 45,137 172,5113,244

117,874 68.3378.5135,4352,889 White Alone 89.06

41,948 24.3212.905,822253 Black or African American Alone 7.80

480 0.280.321447 American Indian and Alaska Native Alone 0.22

3,828 2.222.571,16147 Asian Alone 1.45

98 0.060.03120 Native Hawaiian and Other Pacific Islander Alone 0.00

5,015 2.913.701,67022 Some Other Race Alone 0.68

3,269 1.891.9889227 Two or More Races 0.83

2011 Est. Population Hispanic or Latino 45,137 172,5113,244

11,253 6.528.093,65164 Hispanic or Latino 1.97

161,258 93.4891.9141,4863,179 Not Hispanic or Latino 98.00

2011 Tenure of Occupied Housing Units 16,849 67,9441,210

45,635 67.1775.6512,7461,002 Owner Occupied 82.81

22,310 32.8424.354,103208 Renter Occupied 17.19

2011 Average Household Size 2.59 2.452.67

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Pop-Facts: Demographic Quick Facts 2011 Report

Radius 1: 125 RAINBOW LAKE RD, BOILING SPRINGS, SC 29316-5743, aggregate

Radius 2: 125 RAINBOW LAKE RD, BOILING SPRINGS, SC 29316-5743, aggregate

Radius 3: 125 RAINBOW LAKE RD, BOILING SPRINGS, SC 29316-5743, aggregate

Radius 3Radius 2

0.00 - 10.00 miles0.00 - 5.00 miles0.00 - 1.00 miles

% % %Radius 1Description

2011 Est. Households by Household Income 16,849 67,9441,210

11,540 16.9810.771,815102 Income Less than $15,000 8.43

9,170 13.5011.011,85587 Income $15,000 - $24,999 7.19

9,323 13.7214.462,436121 Income $25,000 - $34,999 10.00

11,828 17.4116.692,812175 Income $35,000 - $49,999 14.46

13,047 19.2024.044,051329 Income $50,000 - $74,999 27.19

6,304 9.2811.962,015216 Income $75,000 - $99,999 17.85

3,196 4.706.311,063104 Income $100,000 - $124,999 8.60

1,419 2.092.8948747 Income $125,000 - $149,999 3.88

882 1.300.9215513 Income $150,000 - $199,999 1.07

1,057 1.560.8714613 Income $200,000 - $499,999 1.07

180 0.260.08141 Income $500,000 and over 0.08

2011 Est. Average Household Income $55,574 $51,919$64,911

2011 Est. Median Household Income $47,366 $39,997$59,053

2011 Est. Per Capita Income $21,065 $20,884$24,262

2011 Median HH Inc by Single Race Class or Ethn

44,57250,83261,664 White Alone

27,20235,07739,904 Black or African American Alone

37,96141,25040,000 American Indian and Alaska Native Alone

48,74047,39841,750 Asian Alone

66,34675,0000 Native Hawaiian and Other Pacific Islander Alone

36,22835,80050,625 Some Other Race Alone

29,47421,62862,500 Two or More Races

32,54133,66242,500 Hispanic or Latino

40,40548,27559,385 Not Hispanic or Latino

Nielsen Solution Center 1 800 866 6511

Prepared By:

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Project Code: kevin

32 OfPage

© 2011 The Nielsen Company. All rights reserved.

Wed May 18, 2011Prepared On: