Offering Memorandum

BURGER KING167 S Main St • Albion, NY 14411

Representative Photo

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe 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. © 2018 Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & 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.

BURGER KING

Albion, NY

ACT ID ZAA0280226

John KruegerRegional Manager, Manhattan, Lic.# 10311205789

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N E T L E A S E D D I S C L A I M E R

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 Buyer’s 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 Buyer’s 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 Buyer’s legal and financial advisors must request and carefully review all legal

and financial documents related to the property and tenant. While the tenant’s 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 tenant’s 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 Buyer’s 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.

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TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01Offering Summary

Location Overview

Regional and Local Map

Aerial Photo

FINANCIAL ANALYSIS 02Acquisition Financing

MARKET OVERVIEW 03Market Analysis

Demographic Analysis

BURGER KING

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BURGER KING

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INVESTMENT

OVERVIEW

OFFERING SUMMARY

Price $1,800,000

Net Operating Income $120,000

Capitalization Rate – Current 6.67%

Price / SF $514.29

Rent / SF $34.29

Lease Type Absolute Net

Gross Leasable Area 3,500 SF

Year Built / Renovated 2008 / 2019

Lot Size 0.84 acre(s)

#

EXECUTIVE SUMMARY

OFFERING SUMMARY

#

FINANCING

Down Payment All Cash

Net Cash Flow 6.67% / $120,000

Cash on Cash Return 6.67%

Total Return 6.67% / $120,000

BURGER KING

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BURGER KING

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OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER# OF EMPLOYEES

*

Albion Correctional Facility 600

Orleans Correctional Facility 500

Walmart 388

Orleans Community Health 233

Orleans Enterprises 210

Albion Central School District 200

Crfs 187

Nursing Home 170

Ace Hardware 148

Villages of Orleans The 141

Orleans County Nursing Home 140

Tops Friendly Markets 451 139

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2018 Estimate Pop 5,247 9,831 12,535

2010 Census Pop 5,342 10,019 12,816

2018 Estimate HH 2,127 3,174 4,162

2010 Census HH 2,200 3,309 4,364

Median HH Income $37,795 $39,508 $43,517

Per Capita Income $20,087 $17,992 $20,211

Average HH Income $48,007 $51,143 $54,535

* # of Employees based on 5 mile radius

BURGER KING

OFFERING SUMMARY

Has Operated as Burger King in Same Location for 50 Years

New Concept Remodel Planned For End of 2019

Absolute NNN Sale-Leaseback

20 Year Base-3 (5) Year Options

Rent to Sales Ratio of 7.2% Contact L:isting Agent for Details

Franchise Guarantee by Operator (Family BK Franchisees for Over

30 Years)

5% Increases Every 5 Years

INVESTMENT HIGHLIGHTS

Marcus & Millichap is pleased to exclusively list a single tenant Burger King located in Albion (Orleans County), New York. Burger

King has been operating in this location since 1969. The approximately 3,500 square foot building is located at 167 South Main

Street and is within proximity to many national retail tenants, industrial corporations, educational institutions, and multi family

residential communities.

Albion is a village in Orleans County, New York, United States. The village is centrally located in the county and is partly within

the towns of both Albion and Gaines. It is the county seat of Orleans County and is home to multiple historical sites and scenic

spots. The Erie Canal passes through the community. Albion is the site of the junction of east-west highway NYS Route 31 (East

Avenue and West Avenue) and north-south highway NYS Route 98 (Main Street). NYS Route 279 joins NY-98 immediately north

of Albion.

The price of $1,800,000 represents a 6.67% Cap Rate.

INVESTMENT OVERVIEW

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TENANT SUMMARY

#

Fiscal Year Ended December 31, 2017

Restaurant Brands International Inc. (d/b/a Burger King and Tim Hortons)

CREDIT RATING: C1 www.fdreports.com | www.creditntell.com | September 30, 2018

PRICING AND VALUATION MATRIX

PROPERTY NAMEBURGER KING

PRICING AND VALUATION MATRIX

PROPERTY NAMEBURGER KING

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TENANT SUMMARY

General Information

Address874 Sinclair Road , Oakville, Ontario, L6K 2YI, Canada

Phone (905) 845-6511

Website www.rbi.com

Store Base

Store Count 25,066

TTM Sales $5,206,700,000

Key Personnel

Chief Operating Officer Josh Kobza

Chief Executive Officer Jose Cil

Executive Chairman Daniel S. Schwartz

Financial Markets

Stock Ticker QSR

Current Price $63.14 as of 3/13/19

52 Week High/Low $65.59 / $50.20

#

167 S Main St, Albion, NY 14411

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAMEBURGER KING

PRICING AND VALUATION MATRIX

PROPERTY NAMEBURGER KING

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REGIONAL AND LOCAL MAP

AERIAL PHOTO

BURGER KING

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BURGER KING

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FINANCIAL

ANALYSIS

#

PROPERTY SUMMARY

OFFERING SUMMARY

#

NOTES

BURGER KING

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OFFERING SUMMARY

MARCUS & MILLICHAP CAPITAL CORPORATION

CAPABILITIES

MMCC—our fully integrated, dedicated financing arm—is committed to

providing superior capital market expertise, precisely managed execution, and

unparalleled access to capital sources providing the most competitive rates and

terms.

We leverage our prominent capital market relationships with commercial banks,

life insurance companies, CMBS, private and public debt/equity funds, Fannie

Mae, Freddie Mac and HUD to provide our clients with the greatest range of

financing options.

Our dedicated, knowledgeable experts understand the challenges of financing

and work tirelessly to resolve all potential issues to the benefit of our clients.

National platform

operating

within the firm’s

brokerage

offices

$6.24 billion

billion total

national

volume in 2018

Access to

more capital

sources than

any other firm

in the industry

Optimum financing solutions

to enhance value

Our ability to enhance

buyer pool by expanding

finance options

Our ability to enhance

seller control

• Through buyer

qualification support

• Our ability to manage buyers

finance expectations

• Ability to monitor and

manage buyer/lender

progress, insuring timely,

predictable closings

• By relying on a world class

set of debt/equity sources

and presenting a tightly

underwritten credit file

WHY MMCC?

Closed 1,678

debt and equity

financings

in 2018

ACQUISITION FINANCING

BURGER KING

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BURGER KING

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MARKET

OVERVIEW

MARKET OVERVIEW

OVERVIEW

ROCHESTER

DEMOGRAPHICS

1

ECONOMY

METRO HIGHLIGHTS

* Forecast

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau

BURGER KING

Rochester’s economy benefits from a central location among the

population centers of the Northeastern U.S., and the innovative

foundations set by such firms as Kodak, Xerox and Bausch and Lomb.

The metro’s higher-education schools produce an educated workforce

and generate cutting-edge research that drives the city’s innovation and

technology sectors. The metro is composed of six counties, Monroe,

Orleans, Wayne, Ontario, Livingston and Yates. Three of them border

Lake Ontario.

Wegmans Food Markets is the third largest local employer following Rochester University and

Rochester Regional Health. The expanding supermarket chain has 92 stores on the East Coast.

Founded in Rochester, Xerox Corp. houses roughly 3,400 employees in Monroe County. Its office is

located on a 600-acre campus in Webster.

Located in Penfield within Monroe County, Paychex, Inc. is a business-process outsourcing

company with thousands of employees within the region. It serves more than half a million small to

medium-size businesses nationwide.

HIGHER EDUCATION

The University of Rochester is one of the country's top-tier research universities

with more than 26,000 employees and some 11,100 students.

DIVERSIFYING ECONOMY

Growing industries include food-and-beverage manufacturing, biotechnology

and green innovation.

HEALTH CENTER

Located in New York between Buffalo and Syracuse, Rochester Regional

Health employs approximately 16,000 workers and includes five hospitals.

1.1M

2017POPULATION:

436K

2017HOUSEHOLDS:

40

2017MEDIAN AGE:

$53,100

2017 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

37.8U.S. Median:

$56,3002.9%

Growth2017-2022*:

1.8%

Growth2017-2022*:

PROPERTY NAME

MARKETING TEAM

BURGER KING

DEMOGRAPHICS

Source: © 2018 Experian

Created on March 2019

POPULATION 1 Miles 3 Miles 5 Miles

2023 Projection

Total Population 5,162 9,816 12,555

2018 Estimate

Total Population 5,247 9,831 12,535

2010 Census

Total Population 5,342 10,019 12,816

2000 Census

Total Population 6,270 10,455 13,036

Current Daytime Population

2018 Estimate 6,589 10,270 12,050

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

2023 Projection

Total Households 2,123 3,203 4,215

2018 Estimate

Total Households 2,127 3,174 4,162

Average (Mean) Household Size 2.42 2.43 2.48

2010 Census

Total Households 2,200 3,309 4,364

2000 Census

Total Households 2,068 3,204 4,240

Occupied Units

2023 Projection 2,123 3,203 4,215

2018 Estimate 2,366 3,548 4,672

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

2018 Estimate

$150,000 or More 3.36% 3.88% 3.91%

$100,000 - $149,000 4.22% 5.91% 7.59%

$75,000 - $99,999 10.37% 11.30% 12.79%

$50,000 - $74,999 19.83% 19.69% 20.72%

$35,000 - $49,999 16.09% 15.20% 15.01%

Under $35,000 46.12% 44.03% 39.97%

Average Household Income $48,007 $51,143 $54,535

Median Household Income $37,795 $39,508 $43,517

Per Capita Income $20,087 $17,992 $20,211

HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 Miles

Total Average Household Retail Expenditure

$51,999 $55,378 $59,632

Consumer Expenditure Top 10 Categories

Housing $15,813 $16,502 $17,462

Shelter $10,366 $10,768 $11,338

Transportation $8,140 $8,806 $9,702

Food $5,192 $5,538 $5,917

Personal Insurance and Pensions $3,928 $4,364 $4,943

Utilities $2,872 $2,993 $3,161

Health Care $2,652 $2,907 $3,184

Entertainment $1,877 $2,019 $2,190

Apparel $1,570 $1,668 $1,749

Cash Contributions $1,413 $1,624 $1,865

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

Population By Age

2018 Estimate Total Population 5,247 9,831 12,535

Under 20 25.56% 20.84% 20.24%

20 to 34 Years 21.42% 23.81% 23.55%

35 to 39 Years 5.99% 6.46% 6.42%

40 to 49 Years 12.26% 13.57% 13.73%

50 to 64 Years 19.39% 20.08% 20.71%

Age 65+ 15.35% 15.22% 15.35%

Median Age 37.44 39.10 39.83

Population 25+ by Education Level

2018 Estimate Population Age 25+ 3,521 7,008 9,012

Elementary (0-8) 3.18% 3.39% 3.40%

Some High School (9-11) 7.38% 9.40% 9.51%

High School Graduate (12) 45.91% 44.12% 43.16%

Some College (13-15) 17.04% 16.78% 17.57%

Associate Degree Only 9.26% 9.47% 9.65%

Bachelors Degree Only 13.28% 11.78% 11.38%

Graduate Degree 2.60% 4.06% 4.51%

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Income

In 2018, the median household income for your selected geography is

$43,517, compare this to the US average which is currently $58,754.

The median household income for your area has changed by 25.98%

since 2000. It is estimated that the median household income in your

area will be $50,333 five years from now, which represents a change

of 15.66% from the current year.

The current year per capita income in your area is $20,211, compare

this to the US average, which is $32,356. The current year average

household income in your area is $54,535, compare this to the US

average which is $84,609.

Population

In 2018, the population in your selected geography is 12,535. The

population has changed by -3.84% since 2000. It is estimated that

the population in your area will be 12,555.00 five years from now,

which represents a change of 0.16% from the current year. The

current population is 50.06% male and 49.94% female. The median

age of the population in your area is 39.83, compare this to the US

average which is 37.95. The population density in your area is 159.24

people per square mile.

Households

There are currently 4,162 households in your selected geography. The

number of households has changed by -1.84% since 2000. It is

estimated that the number of households in your area will be 4,215

five years from now, which represents a change of 1.27% from the

current year. The average household size in your area is 2.48 persons.

Employment

In 2018, there are 5,378 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

50.71% of employees are employed in white-collar occupations in

this geography, and 49.37% are employed in blue-collar occupations.

In 2018, unemployment in this area is 6.21%. In 2000, the average

time traveled to work was 25.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:

79.53% White, 13.87% Black, 0.06% Native American and 0.68%

Asian/Pacific Islander. Compare these to US averages which are:

70.20% White, 12.89% Black, 0.19% Native American and 5.59%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 7.56% of the current year

population in your selected area. Compare this to the US average of

18.01%.

PROPERTY NAME

MARKETING TEAM

BURGER KING

Housing

The median housing value in your area was $81,588 in 2018, compare

this to the US average of $201,842. In 2000, there were 2,965 owner

occupied housing units in your area and there were 1,275 renter

occupied housing units in your area. The median rent at the time was

$419.

Source: © 2018 Experian

DEMOGRAPHICS

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