Offering Memorandum

BURGER KING2 0 0 S O U T H R O C K R O A D

W I C H I T A , K S 6 7 2 0 7

BURGER KING

Wichita, KS

ACT ID Z0010781

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

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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.

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PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

DisclaimerTHIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has

been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References

to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus &

Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

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INVESTMENT OVERVIEW

FINANCIAL ANALYSIS

MARKET OVERVIEW

01

02

03

Offering Summary | Location Overview

Regional and Local Map | Aerial Photo

Acquisition Financing | Sales Comparables

Demographic Analysis

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4

INVESTMENT

OVERVIEW

Originally developed in 2006 as a Taco Bueno restaurant, the property was remodeled and converted to a Burger King in late 2009

and is operated by Genesh, Inc., a Kansas based franchisee of the Burger King Corporation (55 Burger King restaurants in Kansas

and Missouri). Consisting of approximately 2,600 sq. ft. of improvements, this Burger King is equipped with a drive-thru and is situated

on approximately 0.82 acres of land that offers abundant on-site parking. The subject property enjoys excellent frontage onto Rock

Road with a reported daily traffic count of 29,170 and is easily accessible from Highway 400.

Located directly across the street from the Burger King is Towne East Square Mall owned by Simon Property Group (NYSE: SPG),

that consists of 125 stores over 1.17 million sq. ft. of space. This mall is anchored by Dillard’s, Von Maur, JCPenney, and Sears.

Just under 11 years remaining on the absolute NNN lease. The tenant’s rent is scheduled to decrease at year 13 to offset initial

remodeling costs and then increase by 5.0% at year 16 and at the beginning of each five-year option period.

Wichita is the largest city in the state of Kansas with a current population reported at 390,591. Wichita is known as the “The Air Capital

of the World,” and is home to many companies in the aircraft industry such as Textron Aviation, Learjet, Spirit AeroSystems, Airbus,

and more. The Wichita metropolitan area has an estimated population of 644,000. The population within a three-mile radius of the

subject property is reported at 81,417 with an Average Household Income of $75,103.

INVESTMENT OVERVIEW200 South Rock Road, Wichita, KS 67207

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▪ Located Across the Street from Towne East Square Mall (125

Stores, 1.17 Million sq. ft.)

▪ Just Under 11 Years Remaining on Lease Term

▪ Experienced Franchisee

▪ Absolute NNN Lease

INVESTMENT HIGHLIGHTS

PROPERTY PHOTOS

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PROPERTY PHOTOS

#

200 South Rock Road, Wichita, KS 67207

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAME

PRICING AND VALUATION MATRIXREGIONAL AND LOCAL MAP

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REGIONAL AND LOCAL MAP

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AERIAL MAP

888

9

AERIAL MAP

999

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FINANCIAL

ANALYSIS

NOTES

Tenant is Genesh, Inc., an experienced Burger King franchise headquarted in Lenexa, Kansas that currently operates 55 Burger King restaurants in Kansas and Missouri.

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OFFERING SUMMARY200 South Rock Road, Wichita, KS 67207

BURGER KING

(SUBJECT)

Kneaders

KFC

Starbucks

Pizza Hut

Long John Silver's | A&W

Ground Lease

SALES COMPARABLES

1

2

3

4

5

12

SALES COMPARABLES

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SALES COMPARABLES

SALES COMPARABLES SALES COMPS AVG

Avg. 6.61%

0.0

0.8

1.6

2.4

3.2

4.0

4.8

5.6

6.4

7.2

8.0

Burger King Kneaders KFC Starbucks Pizza Hut Long JohnSilver's |

A&W GroundLease

Average Cap Rate

Avg. $514.82

$0.00

$80.00

$160.00

$240.00

$320.00

$400.00

$480.00

$560.00

$640.00

$720.00

$800.00

Burger King Kneaders KFC Starbucks Pizza Hut Long JohnSilver's |

A&W GroundLease

Average Price Per Square Foot

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SALES COMPARABLES

1

NOTES

This property has approximately 15 years left on the absolute NNN lease,

with rental increases of 10% every five years. Guaranteed by Four Foods

Group, who operate in seven states and own 96 restaurants.

Close Of Escrow 1/2/2018

Sales Price $2,633,000

Price/SF $684.96

CAP Rate 6.00%

GLA 3,844 SF

Lot Size 1.12 acre(s)

Year Built 2017

KNEADERS1821 North Rock Road, Wichita, KS, 67206

2

NOTES

This property was recently renovated in 2011, and has approximately 15

years left on an absolute NNN lease with a 15-unit franchisee.

Close Of Escrow 1/4/2018

Sales Price $1,100,000

Price/SF $376.33

CAP Rate 6.50%

GLA 2,923 SF

Lot Size 1.42 acre(s)

Year Built 1993

KFC1210 West Wyatt Earp Boulevard, Dodge City, KS, 67801

NOTES

Approximately 10.7 years remaining on the NNN franchise lease. Rent

decreases in year 12 of the lease. Five percent rent increase as of year 16.

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SALES COMPARABLES

SUBJECT PROPERTY

Asking Price $1,575,000

Price/SF $605.77

CAP Rate 7.63%

GLA 2,600 SF

Lot Size 0.82 acre(s)

Year Built 2006

Lease Term Remaining 10.7 Years

BURGER KING200 S Rock Rd, Wichita, KS, 67207

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SALES COMPARABLES

3

NOTES

This property has nine years left on the absolute NNN lease with 10% rent

increases every five years, and four additional five-year renewal options.

Close Of Escrow 1/25/2018

Sales Price $1,400,000

Price/SF $765.86

CAP Rate 6.76%

GLA 1,828 SF

Lot Size 0.62 acre(s)

Year Built 2007

STARBUCKS16521 West 119th Street, Olathe, KS, 66061

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NOTES

This property has approximately five years remaining on the absolute NNN

lease. The guarantor, NPC International, owns and operates 1,240 Pizza

Huts across 27 states.

Close Of Escrow 10/22/2018

Sales Price $1,180,556

Price/SF $311.16

CAP Rate 7.20%

GLA 3,794 SF

Lot Size 1.69 acre(s)

Year Built 2007

Lease Term Remaining 5 Years

PIZZA HUT2920 West 18th Avenue, Emporia, KS, 66801

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NOTES

Approximately 10 years remaining on the absolute NNN ground lease with

15-unit franchisee. Seven and a half percent rent increases every five

years.

Close Of Escrow 11/28/2018

Sales Price $1,663,400

Price/SF $435.79

CAP Rate 6.60%

GLA 3,817 SF

Lot Size 0.78 acre(s)

Year Built 2009

LONG JOHN SILVER'S | A&W547 South Rock Road, Wichita, KS, 67207

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SALES COMPARABLES

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MARKET

OVERVIEW

OVERVIEW

WICHITA

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

Boasting a diverse economic base of manufacturing, aircraft, healthcare

and professional services, the Wichita market is composed of five

counties and supports a population of roughly 649,000 people. In

addition, the metro is growing faster than the national average, with gains

of more than 21,100 people forecast by 2022. Wichita State University

also lies within the city limits, enrolling a student body of nearly 14,500 in

both graduate and undergraduate programs.

DIVERSE MANUFACTURING BASEManufacturers of aviation, air-conditioners, turf equipment, food products and

telecommunications are active in the metro.

EDUCATIONAL CENTERHome to Wichita State University, education is a key driver of the economy.

Public school districts and the university provide more than 10,000 jobs.

LARGE GOVERNMENT PRESENCEMore than 7,000 workers are employed by the state of Kansas and the U.S.

government, providing a large contingent of employment to the metro.

▪ Aviation is a integral part of the economy, with Spirit AeroSystems, Cessna Aviation and Beechcraft Corp.

hiring more than 25,000 workers. Boeing and Bombardier Aerospace also have a combined 5,500 employees.

▪ Via-Christi Health is one of the largest employers in the Wichita metro, with more than 10,000 workers on

local payrolls.

▪ Numerous other active distribution and manufacturing companies in the metro include Cargill Meat Solutions,

Koch Industries Inc., and York International. Together these firms employ approximately 4,000 people.

▪ Several telecommunications firms have established a base of operations in the market. Both T-Mobile and Cox

Communications have payrolls exceeding 800 positions each.

2017POPULATION:

251K

2017HOUSEHOLDS:

35.5

2017MEDIAN AGE:

$54,700

2017 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

37.8U.S. Median:

$56,3004.5%

Growth2017-2022*:

3.3%

Growth2017-2022*:

649K

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PROPERTY NAME

MARKETING TEAM

BURGER KING

DEMOGRAPHICS

Source: © 2017 Experian

Created on December 2018

POPULATION 1 Miles 3 Miles 5 Miles

▪ 2022 Projection

Total Population 8,217 82,666 175,717

▪ 2017 Estimate

Total Population 8,410 81,417 172,249

▪ 2010 Census

Total Population 8,334 79,635 166,993

▪ 2000 Census

Total Population 8,529 76,316 155,591

▪ Current Daytime Population

2017 Estimate 14,564 86,298 215,567

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

▪ 2022 Projection

Total Households 3,611 35,599 72,126

▪ 2017 Estimate

Total Households 3,646 34,763 69,905

Average (Mean) Household Size 2.30 2.34 2.41

▪ 2010 Census

Total Households 3,592 33,903 67,547

▪ 2000 Census

Total Households 3,727 33,028 64,251

▪ Occupied Units

2022 Projection 3,611 35,599 72,126

2017 Estimate 3,866 38,114 77,477

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

▪ 2017 Estimate

$150,000 or More 17.41% 9.02% 8.83%

$100,000 - $149,000 12.96% 11.76% 10.98%

$75,000 - $99,999 11.86% 10.13% 9.81%

$50,000 - $74,999 17.98% 20.20% 18.39%

$35,000 - $49,999 10.86% 14.34% 13.72%

Under $35,000 28.92% 34.56% 38.28%

Average Household Income $101,489 $75,103 $72,695

Median Household Income $63,803 $51,226 $47,292

Per Capita Income $44,037 $32,192 $29,787

HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 MilesTotal Average Household Retail Expenditure

$71,889 $63,561 $61,703

▪ Consumer Expenditure Top 10 Categories

Housing $18,897 $16,824 $16,256

Transportation $12,892 $11,273 $10,910

Shelter $10,442 $9,427 $9,122

Personal Insurance and Pensions $8,197 $6,806 $6,504

Food $6,963 $6,396 $6,206

Health Care $5,098 $4,367 $4,185

Utilities $4,120 $3,692 $3,577

Entertainment $3,020 $2,683 $2,581

Household Furnishings and Equipment

$2,148 $1,835 $1,767

Cash Contributions $1,748 $1,369 $1,301

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

▪ Population By Age

2017 Estimate Total Population 8,410 81,417 172,249

Under 20 25.25% 27.06% 28.27%

20 to 34 Years 23.32% 24.43% 24.32%

35 to 39 Years 5.60% 6.17% 5.97%

40 to 49 Years 9.41% 10.44% 10.68%

50 to 64 Years 18.99% 18.25% 17.92%

Age 65+ 17.45% 13.67% 12.83%

Median Age 36.19 34.00 33.18

▪ Population 25+ by Education Level

2017 Estimate Population Age 25+ 5,668 53,111 109,284

Elementary (0-8) 0.63% 2.28% 3.31%

Some High School (9-11) 4.07% 6.01% 7.43%

High School Graduate (12) 17.31% 21.93% 23.18%

Some College (13-15) 21.63% 25.16% 24.42%

Associate Degree Only 7.29% 7.94% 7.16%

Bachelors Degree Only 30.33% 22.33% 20.96%

Graduate Degree 18.45% 13.13% 12.27%

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MARKET OVERVIEW

Income

In 2017, the median household income for your selected geography is

$63,803, compare this to the US average which is currently $56,286.

The median household income for your area has changed by 22.91%

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

area will be $73,972 five years from now, which represents a change

of 15.94% from the current year.

The current year per capita income in your area is $44,037, compare

this to the US average, which is $30,982. The current year average

household income in your area is $101,489, compare this to the US

average which is $81,217.

Population

In 2017, the population in your selected geography is 8,410. The

population has changed by -1.40% since 2000. It is estimated that the

population in your area will be 8,217.00 five years from now, which

represents a change of -2.29% from the current year. The current

population is 48.93% male and 51.07% female. The median age of the

population in your area is 36.19, compare this to the US average

which is 37.83. The population density in your area is 2,674.34 people

per square mile.

Households

There are currently 3,646 households in your selected geography. The

number of households has changed by -2.17% since 2000. It is

estimated that the number of households in your area will be 3,611

five years from now, which represents a change of -0.96% from the

current year. The average household size in your area is 2.30

persons.

Employment

In 2017, there are 8,691 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

74.82% of employees are employed in white-collar occupations in this

geography, and 24.49% are employed in blue-collar occupations. In

2017, unemployment in this area is 3.52%. In 2000, the average time

traveled to work was 17.00 minutes.

Race and Ethnicity

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

74.72% White, 12.13% Black, 0.15% Native American and 5.00%

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

70.42% White, 12.85% Black, 0.19% Native American and 5.53%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 9.08% of the current year

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

17.88%.

PROPERTY NAME

MARKETING TEAM

BURGER KING

Housing

The median housing value in your area was $167,218 in 2017,

compare this to the US average of $193,953. In 2000, there were

2,333 owner occupied housing units in your area and there were 1,395

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

time was $485.

Source: © 2017 Experian

DEMOGRAPHICS

1919

MARKET OVERVIEW

MARKETING TEAM

Source: © 2015 Experian

PROPERTY NAME

#

CREATED ON DECEMBER 11, 2018

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAMEBURGER KING

PRICING AND VALUATION MATRIX

PROPERTY NAMEBURGER KING

DEMOGRAPHICS

1 Miles 3 Miles 5 Miles

POPULATION

2022 Projection 8,217 82,666 175,717

2017 Estimate 8,410 81,417 172,249

2010 Census 8,334 79,635 166,993

2000 Census 8,529 76,316 155,591

INCOME

Average $101,489 $75,103 $72,695

Median $63,803 $51,226 $47,292

Per Capita $44,037 $32,192 $29,787

HOUSEHOLDS

2022 Projection 3,611 35,599 72,126

2017 Estimate 3,646 34,763 69,905

2010 Census 3,592 33,903 67,547

2000 Census 3,727 33,028 64,251

HOUSING

2017 $167,218 $145,419 $138,486

EMPLOYMENT2017 Daytime Population

14,564 86,298 215,567

2017 Unemployment 3.52% 4.58% 5.60%

2017 Median Time Traveled

17 18 18

RACE & ETHNICITY

White 74.72% 64.39% 60.96%

Native American 0.15% 0.15% 0.11%

African American 12.13% 16.61% 19.87%

Asian/Pacific Islander

5.00% 8.01% 7.76%

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MARKET OVERVIEW

www.MarcusMillichap.com

P R E S E N T E D B Y

Colby HaugnessBroker of RecordCincinnati OfficeTel: (513) 878-7733Fax: (858) 332-1721Colby.Haugness@marcusmillichap.comLicense: KS 00241410