1 | D e n n y ’ s - B a t t l e b o r o , N C

D e n n y ’s7 1 3 5 N C # 4 , B a t t l e b o r o , N C 2 7 8 0 9O F F E R I N G M E M O R A N D U M

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CALVIN SHORT KYLE MATTHEWSFVP & Senior Director BROKER OF RECORD

calv in .short@matthews.comDIR (949) 432-4506MOB (310) 567-3525LIC # 01927216

LIC # 288917

E X C L U S I V E L Y L I S T E D B Y

CHUCK EVANSAssociate

chuck.evans@matthews.comDIR (949) 432-4508MOB (925) 323-2263LIC # 01963473

Contents

3E x e c u t i v e S u m m a r y

4Te n a n t O v e r v i e w

6A r e a O v e r v i e w

I n v e s t m e n t H i g h l i g h t s

• Brand new 20-year lease commencing at the close of escrow and two (2) additional five (5) year options to extend

• Attractive 7.50% rental increases every 5 years

• Sitting outparceled to Baymont Inn & Suites, which houses 150+ guests at any time

• Denny’s is positioned strategically off of Interstate 95

• Surrounding retailers include McDonald’s, Wendy’s, Bojangles’, Popeyes, KFC and Dunkin’ Donuts, amongst others

• RJC LLC operates 35+ units and is the 6th largest Denny’s franchisee in the United States

• RJC LLC’s total store sales revenue expected to exceed $42,000,000 in 2017

• Battleboro is just northeast of Rocky Mount, NC, the region’s economic hub

3 | D e n n y ’ s - B a t t l e b o r o , N C

D e n n y ’ s7 1 3 5 N C # 4 , B a t t l e b o r o , N C 2 7 8 0 9List Price ............................................................................................$1,068,035

CAP Rate - Current ....................................................................................7.00%

Gross Leasable Area .......................................................................± 4,494 SF

Lot Size ...........................................................................................± 1.04 Acres

Year Built ........................................................................................................1992

Annualized Operating DataMonthly Rent Annual Rent Rent/SF Cap Rate

Years 1 - 5 $6,230.21 $74,762.48 $16.64 7.00%

Years 6 - 10 $6,697.47 $80,369.67 $17.88 7.53%

Years 11 - 15 $7,199.78 $86,397.39 $19.23 8.09%

Years 16 - 20 $7,739.77 $92,877.20 $20.67 8.70%

Option 1 $8,320.25 $99,842.98 $22.22 9.35%

Option 2 $8,944.27 $107,331.21 $23.88 10.05%

Option 3 $9,615.09 $115,381.05 $25.67 10.80%

Tenant Summary

Tenant Trade Name Denny’s

Type of Ownership Fee Simple

Lease Guarantor Franchisee

Lease Type NNN

Original Lease Terms Close of Escrow

Rent Commencement Date Close of Escrow

Lease Expiration Date 20 Years from COE

Term Remaining on Lease 20 Years

Increases 7.50% Increases Every Five (5) Years

Options Three (3), Five (5) Year Options

E X E C U T I V E S U M M A R Y

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T E N A N T O V E R V I E W

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M a t t h e w s R E I S | 4

5 | D e n n y ’ s - B a t t l e b o r o , N C

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D e n n y ’ s

Denny’s is one of the leading full-service, family-style restaurant chains in the US, with more than 1,710 of its signature eateries located across the country. Typically open 24 hours a day, the chain is best known for its menu of breakfast items, including eggs, pancakes, and combination plates carrying such names as All-American Slam, Lumberjack Slam, and the aforementioned Grand Slam Breakfast. Denny’s also serves standard American fare (burgers, sandwiches, steak) for lunch and dinner. The company owns and operates about 165 of its restaurants, while the rest are franchised or operate under licensing agreements.

STRATEGY

Like many other chain restaurants, Denny’s markets itself as a family-friendly dining establishment featuring good value and quality food items. It relies heavily on discounted price offers and limited-time menu offerings to help drive traffic to its restaurants. Denny’s has thrived by stressing value through effective marketing and national advertising campaigns. Franchisees contribute a percentage of their gross revenue to support the national media push to drive traffic to Denny’s

locations and many make contributions to local marketing co-operatives.

OPERATIONS

The company utilizes franchising as a means to expand and oversee its wide-ranging chain of locations without the cost of owning and operating each of them. Local operators pay royalties or licensing fees in order to use the Denny’s brand and other intellectual property.

GEOGRAPHIC REACH

Denny’s has 1,710 eateries, including 1,599 restaurants in the US and 111 restaurants in Canada, Chile, Costa Rica, the island of Curaçao, the Dominican Republic, El Salvador, Guam, Honduras, Mexico, Puerto Rico, New Zealand, and the UAE.

Company Name Denny’s Corporation (NASDAQ: DENN)

Ownership Public

Revenue $491.29 M

Net Income $35.98 M

No. of Locations ± 1,710

No. of Employees ± 8,500

Headquartered Spartanburg, South Carolina

Website www.dennys.com

Year Founded 1988

M a t t h e w s R E I S | 4

N

T h e O f f e r i n g

Property Name Denny’s

Property Address 7135 NC #4

Battleboro, NC 27809

Assessor’s Parcel Number 384400-92-9915

Zoning FI

Site Description

Number of Stories One

Year Built 1992

Gross Leasable Area (GLA) ± 4,494 SF

Lot Size ± 1.04 Acres (45,302 SF)

Type of Ownership Fee Simple

Landscaping Professional

Topography Generally Level

Construction

Foundation Concrete Slab

Framing Metal

Exterior Brick

Parking Surface Asphalt

Roof Flat

P a r c e l M a p

E 53rd Street ± 21,000 ADT

M a t t h e w s R E I S | 6

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A e r i a l T e n a n t M a p

Subject Property

M a t t h e w s R E I S | 6

M a t t h e w s R E I S | 8

B a t t l e b o r o , N CSituated at the northeast border of the city of Rocky Mount and about an hour east of Raleigh and Durham, Battleboro is a township in Nash County, North Carolina. It is known for being home to the Meadows, a historic plantation house also known as the Robert Carter Hilliard House. Nash County is a part of the Rocky Mount, NC Metropolitan Statistical Area.

A R E A O V E R V I E W

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R o c k y M o u n t , N CDivided by railroad tracks, Rocky Mount is partially located in Edgecombe County and in Nash County. Referred to as the Twin Counties, it is a place where tradition and diversity are integral to the city’s successful economic growth. Enthusiasm for what the future holds parallels Rocky Mount’s pride in its past.

An affordable cost of living can be attributed to below average housing costs, utility costs and healthcare costs. Convenient access to local facilities such as golf courses, movie theaters, numerous parks, an active arts calendar and museums adds to residents’ quality of life.

There is a growing arts community to go alongside the lively city’s many businesses, attractions, restaurants and accommodations. Rocky Mount’s historic downtown area is a hub in itself with a mix of retail, restaurants and service businesses that reflect the city’s diversity, community spirit and central North Carolina location. From historic attractions to special events, Rocky Mount has a multitude of unique experiences that have helped shape its rich culture.

C i t y D e m o g r a p h i c s

B u s i n e s s C l i m a t eResiding at the intersection of State Highway NC-64 and Interstate Highway I-95, Downtown Rocky Mount is at the core of the city’s vivacity. Rocky Mount’s Amtrak Station is in the city’s Historic Train Station in the heart of the downtown area, which has been the primary focus of redevelopment initiatives.

The past two decades have brought a transition to the area’s economy from its traditional industries of tobacco, furniture and textiles to knowledge-based enterprises. Advanced manufacturing, software and information technology, bio-pharmaceuticals and financial services are industries that have established Rocky Mount’s current global economy. As Rocky Mount continues to attract many of these new and high-technology industries, its older established industries continue to thrive. Agriculture is one of the most significant contributors to the area’s economy for it is a top producer in tobacco, cucumbers, sweet potatoes, poultry, peanuts, cotton, and hogs.

2 0 1 7 E s t . P o p u l a t i o n 5 4 , 2 6 1

2 0 1 7 E s t . H o u s e h o l d s 2 2 , 3 0 0

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T o p E m p l o y e r s

# Employer

1 Nash-Rocky Mount Public Schools

2 Pfizer

3 Nash UNC Health Care

4 Cummins-Rocky Mount Engine Plant

5 Edgecombe County Public Schools

Subject Property

D E V E L O P M E N TDowntown’s unique economic and community development philosophy fosters creative innovation. It is Rocky Mount’s cultivation of a business-friendly climate that has become a dominant economic driving force in the northeastern North Carolina region, positioning the city at the forefront of a nationally recognized economic development movement.

Building upon the success of millions of dollars-worth of reinvestment in the city’s core, Rocky Mount maintains a long-term mindset in its downtown community initiated master plan as the development office assists businesses in placement and expansion activities each year. The Downtown Development Office supports all current and future business ventures, showcasing a proven record of consulting, incentives and networking.

Recent revitalization projects in Rocky Mount include an $8 million rehabilitation of the Douglas Block and a $6.5 million-dollar Streetscape improvement effort meant to improve the façade of historic buildings. Future development includes the construction of CSX Transportation’s $270 million state of the art Carolina Connector cargo terminal in the northern part of the city off of US 301. This cargo hub is projected to bring a cluster of warehouses and other distribution facilities around Rocky Mount, and eventually create up to 13,000 related jobs. Construction is anticipated to begin in 2018, pending completion in 2020.

R O C K Y M O U N T Q U I C K F A C T S• Rocky Mount provides the prime location for investors to experience great

success

• The city is within proximity to a stable employment base

• This means access to customers with higher disposable incomes

• Downtown Rocky Mount has a Community Initiated Development Plan focused on enhancing public infrastructure and encouraging traffic to the area

• Rocky Mount consistently conducts market research to ensure it keeps up with emerging development trends and to promote economic growth

1 1 | D e n n y ’ s - B a t t l e b o r o , N C

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Denny’s located at 7135 NC #4, Battleboro, NC 27809 (“Property”) . I t has been prepared by Matthews Retai l Advisors. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T

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CALVIN SHORTFVP & Senior Director

calv in .short@matthews.comDIR (949) 432-4506MOB (310) 567-3525LIC # 01927216

KYLE MATTHEWSBROKER OF RECORD

LIC # 288917

E XC LU S I V E LY L I S T E D BY

CHUCK EVANSAssociate

chuck.evans@matthews.comDIR (949) 432-4508MOB (925) 323-2263LIC # 01963473

D e n n y ’s7 1 3 5 N C # 4 , B a t t l e b o r o , N C 2 7 8 0 9

O F F E R I N G M E M O R A N D U M