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SPRING HILL, FL

Applebee's

OFFERING MEMORANDUM

CONFIDENTIALITY AND DISCLAIMER

The 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 tenants 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.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS

& MILLICHAP AGENT FOR MORE DETAILS.

SPRING HILL, FL

Applebee's

NET LEASED DISCLAIMER

Applebee'sSPRING HILL, FL

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyers responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyers tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyers legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenants past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenants projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyers legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

Section 1 PRICING AND FINANCIAL ANALYSIS

Section 2 PROPERTY DESCRIPTION

Section 3 RECENT SALES

Section 4 DEMOGRAPHIC ANALYSIS

TABLE OF CONTENTS

Applebee's


PRICING AND FINANCIAL ANALYSIS

Annualized Operating Data4651 Commercial WaySpring Hill, FL 34606

Price $4,241,028

Down Payment 100% / $4,241,028

Rentable Square Feet 4,996

Price/SF $848.88

CAP Rate 7.00%

Year Built 2007

Lot Size 1.48 ACS

Type of Ownership Fee Simple

1

Location

PRICING AND FINANCIAL ANALYSISApplebee'sSPRING HILL, FL

Rent Increases Annual Rent Monthly RentBase Rent $296,872.00 $24,739.33Year 2017-2022 $319,137.00 $26,594.75

Year 2022-2027 $343,072.00 $28,589.33

Option 1 $368,802.00 $30,733.50

Option 2 $396,463.00 $33,038.58Base Rent ($59.42/SF) $296,872

Net Operating Income $296,872

Total Return 7.00% / $296,872

Tenant Trade Name Applebee's

Ownership Public

Tenant Franchisee

Lease Guarantor Franchisee Guarantee

Lease Type Absolute Net

Roof and Structure Tenant Responsible

Lease Term 20 Years

Lease Commencement Date 12/20/2007

Rent Commencement Date 12/20/2007

Lease Expiration Date 11/30/2027

Term Remaining on Lease 14.5 Years

Increases 7.5% Every Five Years

Options Two Five-Year

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services ofFlorida 2013 Marcus & Millichap U0120172

Tenant Summary

FINANCIAL OVERVIEW

2



Property Name Applebee's

Property Address 4651 Commercial Way

Spring Hill, FL 34606

Property Type Net Leased Restaurant - Other


Tenant Trade Name Applebee's

Ownership Public

Tenant Franchisee

Sales Volume $1.08 Billion in 2011 Annual Sales

Net Worth $955.52 Million Market Value

Lease Guarantor Franchisee Guarantee

Credit Rating B/ Outlook Stable

Rating Agency Standard & Poor's

Stock Symbol NYSE:DIN

Lease Commencement Date 12/20/2007

Rent Commencement Date 12/20/2007

Lease Expiration Date 11/30/2027

Term Remaining on Lease 14.5 Years

Lease Type Absolute Net

Roof and Structure Tenant Responsible

Lease Term 20 Years

Increases 7.5% Every Five Years

Options to Renew Two Five-Year

No. of Locations 2,000 +/-

Headquartered Lenexa, KS

Web Site www.applebees.com

Years in the Business 29+ Years

TENANT OVERVIEW

Part of Standard & Poor's Small Cap 600 IndexMember of Russell 2000 Index, June 2012

Applebee's ensures that even far-flung suburbs can have a neighborhood bar.

The company operates the largest casual dining chain with about 2,000 of its signature Applebee's Neighborhood Grill & Bar locations across the US and in almost 20 other countries.

Its eateries are primarily freestanding units and sport interiors festooned with local memorabilia to give each location an indigenous feel. The menu features beef, chicken, and pork items, as well as burgers, pasta, and seafood. The chain is known for its selection of appetizers. About 400 locations are company-owned, while the rest are franchised. Applebee's is owned by casual and family dining operator DineEquity.

The dining chain has been undergoing a radical change in business model under the ownership of DineEquity. The company has been focused on selling nearly all of its corporate-run locations to franchisees, in keeping with its parent's strategy of growth through franchising.

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TENANT OVERVIEW CONTINUED

The chain has also been increasing its marketing and menu development efforts to attract the attention of the dining public. Those initiatives have been increasingly important as the economic recession has curtailed consumer spending on such things as dining out.

The chain was bought by DineEquity in 2007, then known as IHOP, for $2.1 billion. Mike Archer, who previously served with Carlson Restaurants Worldwide leading the T.G.I. Friday's chain, was tapped the following year and named as president of Applebee's.

Competitive Landscape for Casual Restaurants:The US casual restaurants industry includes more than 200,000 establishments that generate about $200 billion in revenue. Major companies include Brinker International, Darden Restaurants (Red Lobster and Olive Garden), DineEquity (Applebee's and IHOP), and Bloomin' Brands (Outback Steakhouse and Carrabba's). The industry is highly fragmented and the 50 largest companies account for about 20 percent of the market. According to Hoover's D&B Report, DineEquity's closest competitors are Brinker, with gross revenues of $2.76 billion and a net profit margin of 5.11 percent, and Carlson Restuarants at $768 million.


PROPERTY DESCRIPTION

The subject site is located directly off of Commercial Way, a six-lane thoroughfare running through the heart of the region's retail hub. Adjacent to the site is a Target and Publix-anchored center that is also home to JoAnn's Fabrics. Just to the north of the site is a Home Depot Center and a Lowe's Center. Other retailers in the immediate area include Popeye's Chicken & Biscuits, Steak & Shake, Wells Fargo, Pet SuperMarket, Honey Baked Ham, Am/Pm, 7-Eleven, Regions Bank, and Perkins Restaurant.

Beyond the retail hub of the region, the area is surrounded by undeveloped forests and single family home, master planned communities.

Investment Highlights

Strategically Located Near a Target-Anchored Shopping Center

Located on Commercial Way, a Six-Lane Thoroughfare withTremendous Street Visibility

Located Across From St. Lucy's Medical Walk-In Clinic

Located One Block From a Home Depot Center and a Lowe's

Located in the Center of the Region's Retail Pocket

Highly Trafficked Region Where Over 45,000 Vehicles Pass InFront of the Site Daily

The Area's Population Has Grown by 52 Percent Since 2000

5

PROPERTY DESCRIPTIONApplebee'sSPRING HILL, FL


INVESTMENT OVERVIEW

6


The Offering

Property Applebee's

Property Address 4651 Commercial Way


Site Description

Year Built 2007


Lot Size 1.48 ACS

Type of Ownership Fee Simple


PROPERTY SUMMARY

Local Map Regional Map

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RECENT SALES

1)2)3)

Applebee'sApplebee's - Pinole, CAApplebee's - San Ramon, CAApplebee's - Cincinnati, OH

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RECENT SALESApplebee'sSPRING HILL, FL


RECENT SALES MAP

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Subject Applebee's-

Pinole,CA

Applebee's-

SanRamon,

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Applebee's-

Cincinnati,OH

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Pinole,CA

Applebee's-

SanRamon,

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Applebee's-

Cincinnati,OH

Average Price per Square Foot

11

RECENT SALES

Average Cap Rate



CAP RATE AND PRICE PER SQUARE FOOT

1

2

Subject Property

Applebee's4651 Commercial Way


Applebee's - Pinole, CA1369 Fitzgerald Drive

Pinole, CA 94564

Applebee's - San Ramon, CA17900 San Ramon Valley Boulevard

San Ramon, CA 94583

Comments14 years remaining on the base term of the lease, followed by four five-year options.

Comments12 years remaining on base term of lease.

Close of Escrow: 01/20/2011 Sales Price: $3,150,000

Rentable SF: 6,507 Down Payment: 100%

Year Built: 1997 CAP Rate: 6.91%

Price/SF: $484.09

Close of Escrow: On Market Sales Price: $3,225,000



Price/SF: $607.46

12

Rentable Square Feet: 4,996 Sales Price: $4,241,028

Year Built: 2007 Down Payment: $4,241,028

CAP Rate: 7.00%

Price/SF: $848.88



RECENT SALES

3 Applebee's - Cincinnati, OH4440 Glenn Este Withamsville

Cincinnati, OH 45245

Close of Escrow: On Market Sales Price: $2,038,000



Price/SF: $457.98

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RECENT SALES


DEMOGRAPHIC ANALYSIS

1 Mile 3 Miles 5 Miles

1990 Population 3,427 20,352 49,553

2000 Population 5,094 27,975 66,802

2010 Population 5,697 31,336 82,921

2012 Population 5,831 32,074 84,870

2017 Population 6,129 33,713 89,194

1990 Households 1,472 9,025 21,445

2000 Households 2,210 12,830 29,336

2010 Households 2,500 14,206 35,412

2012 Households 2,572 14,614 36,429

2017 Households 2,742 15,580 38,852

2012 Average Household Size 2.26 2.19 2.32

2012 Daytime Population 2,221 7,176 16,888

1990 Median Housing Value $93,211 $79,690 $73,788

2000 Median Housing Value $100,434 $95,284 $87,521

2000 Owner Occupied Housing Units 77.75% 79.18% 78.63%

2000 Renter Occupied Housing Units 14.03% 11.14% 11.54%

2000 Vacant 8.22% 9.70% 9.85%



2012 Vacant 12.11% 14.35% 14.08%



2017 Vacant 10.85% 13.14% 12.82%

$ 0 - $14,999 15.2% 12.7% 13.2%

$ 15,000 - $24,999 18.4% 17.6% 15.7%

$ 25,000 - $34,999 14.9% 15.1% 14.2%

$ 35,000 - $49,999 17.8% 17.9% 17.4%

$ 50,000 - $74,999 10.4% 18.0% 19.2%

$ 75,000 - $99,999 9.1% 8.0% 9.9%

$100,000 - $124,999 5.0% 5.3% 5.3%

$125,000 - $149,999 2.9% 2.2% 2.2%

$150,000 - $199,999 2.2% 1.2% 1.1%

$200,000 - $249,999 0.9% 0.4% 0.4%

$250,000 + 3.3% 1.8% 1.4%

2012 Median Household Income $35,983 $38,537 $40,499

2012 Per Capita Income $26,355 $23,933 $22,057

2012 Average Household Income $59,730 $52,154 $51,129

Demographic data 2010 by Experian/Applied Geographic Solutions.

15

DEMOGRAPHIC ANALYSISApplebee'sSPRING HILL, FL


DEMOGRAPHIC REPORT

Geography: 5 Miles

Population

In 2011, the population in your selected geography was 97,020 . The population has changed by 52.56% since 2000. It is estimatedthat the population in your area will be 103,862 five years from now, which represents a change of 7.05% from the current year. Thecurrent population is 49.1% male and 50.9% female. The median age of the population in your area is 46.0 , compare this to the U.S.average which is 36.9. The population density in your area is 1,236.79 people per square mile.

HouseholdsThere are currently 40,277 households in your selected geography. The number of households has changed by 55.24% since 2000.It is estimated that the number of households in your area will be 42,937 five years from now, which represents a change of 6.60%from the current year. The average household size in your area is 2.39 persons.

IncomeIn 2011, the median household income for your selected geography is $58,354 , compare this to the U.S. average which is currently$53,620. The median household income for your area has changed by 12.63% since 2000. It is estimated that the median householdincome in your area will be $63,144 five years from now, which represents a change of 8.21% from the current year.

The current year per capita income in your area is $31,463 , compare this to the U.S. average, which is $28,713. The current yearaverage household income in your area is $74,425 , compare this to the U.S. average which is $73,458.

Race & EthnicityThe current year racial makeup of your selected area is as follows: 84.58% White, 7.40% African American, 0.24% Native Americanand 1.36% Asian/Pacific Islander. Compare these to U.S. averages which are: 72.40% White, 12.60% African American, 0.95%Native American and 4.93% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 12.14% of the current yearpopulation in your selected area. Compare this to the U.S. average of 16.90%.

HousingThe median housing value in your area was $145,681 in 2000, compare this to the U.S. average of $110,796 for the same year. In2000, there were 20,815 owner occupied housing units in your area and there were 5,129 renter occupied housing units in your area.The median rent at the time was $642 .

EmploymentIn 2011, there are 38,002 employees in your selected area, this is also known as the daytime population. The 2000 Census revealedthat 66.1% of employees are employed in white-collar occupations in this geography, and 33.9% are employed in blue-collaroccupations. In 2011, unemployment in this area is 8.44% . In 2000, the median time traveled to work was 21.4 minutes.


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SUMMARY REPORT

Number of people living in a given area per square mile.


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POPULATION DENSITY

The number of people employed in a given area per square mile.


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EMPLOYMENT DENSITY

Average income of all the people 15 years and older occupying a single housing unit.


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AVERAGE HOUSEHOLD INCOME

SPRING HILL, FL

OFFERING MEMORANDUM

Applebee's

Offices Nationwidewww.MarcusMillichap.com

Exclusively Listed By:

Lior RegenstreifVice President Investments

Senior Director, Net Leased Properties GroupEncino Office

License: CA 01267761Tel: (818)212-2730Fax: (818)212-2710

[email protected]/LiorRegenstreif

Kirk FeliciBroker

Marcus & MillichapLicense: FL BK 672851

Tel: (786)522-7000Fax: (786)522-7010

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