New Presbyterian Hospital 66 Acre Campus, 600 Employees

IHOP RESTAURANT

NEC OF UNSER BLVD. & CABEZON BLVD. IN RIO RANCHO, NM (ALBUQUERQUE MSA)

Brand New, 20-Year Absolute NNN IHOP Restaurant w/ 10% Increases Every 5-Years

IHOP: 1,500+ Locations Throughout the U.S. (all 50 States), Canada, Mexico, Puerto Rico, Guatemala

Tenant: New Mexico’s Largest IHOP Franchisee | 2006 Franchisee of the Year | High Net Worth Personal Guarantee

Located at Cabezon Commons 7.8 Acre Commercial & 3,300 Homes | Along Unser Blvd. - 26,000 Cars / Day

Strategically Positioned Between Wal-Mart & New Presbyterian Hospital | Directly Across from Elementary School

Presbyterian Hospital: 66 Acre Campus | Opens 4th Quarter 2011 | Employees Over 600 People

Neighboring Retailers Include: Wal-Mart Supercenter, Premiere Cinemas, Walgreens, True Value, Dollar Tree, Goodwill

Rio Rancho (Pop. 87,521): 3rd Largest & Fastest Growing Community in New Mexico | 2000 - 2010 69% Pop. Growth

Rio Rancho is Home to Largest and Most Advanced Semiconductor Plant in the World - Intel’s $2 Billion FAB 11X

Top Local Employers: Intel, Hewlett Packard, B of A, U.S. Cotton, Lectrosonics, Victoria’s Secret, Sprint, PCS

Rio Rancho Ranks Top 100 Best Places to Live - Money Magazine (2005,2006, 2010)

$3,253,000 / 8.00% CAP

EXCLUSIVE LISTING AGENT:

Joe Caputo 214.522.7200 [email protected]

REP PHOTO

Wal-Mart Anchored Shopping Center

Southern & Unser Plaza

Cabezon Residential Community 3,300 Existing Homes

New Presbyterian Hospital 66 Acre Campus, 600 Employees

Cabezon Commons 7.8 Acres Commercial

Maggie Cordova Elementary School

http://www.bsro.jobs/about_bsro


http://www.exp1031.com/

EXP Realty Advisors, Inc. (“Agent”) has been engaged as the exclusive agent for the sale of the building located on the NEC of Unser Blvd. and Cabezon Blvd. in Rio Rancho by the owner of the Property (“Seller”). The Property is being offered for sale in an “as-is, where-is” condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. The enclosed materials are being provided solely to facilitate the prospective investor’s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Agent nor the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein. Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller. Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller’s obligations hereunder have been satisfied or waived. By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller and Agent.

TABLE OF CONTENTS – DISCLAIMER | 2

TABLE OF CONTENTS

CONFIDENTIAL MEMORANDUM & DISCLAIMER

PAGE 3: INVESTMENT OVERVIEW

PAGE 1: COVER

PAGE 2: TABLE OF CONTENTS - DISCLAIMER

PAGE 5: AERIAL PHOTOGRAPH

PAGES 6: LOCATION OVERVIEW

PAGE 7-8: LOCATION MAPS

PAGE 4: IHOP PHOTOGRAPHS

IHOP RESTAURANT

NEC OF UNSER BLVD. & CABEZON BLVD. IN RIO RANCHO, NM (ALBUQUERQUE SUBURB)

PAGE 9: DEMOGRAPHICS


INVESTMENT OVERVIEW | 3

IHOP RESTAURANT

1,500+ IHOP’s in all 50 U.S. States & Throughout N. America

Founded: 1958 | HQ: Glendale, CA | Employees 32,000+ People

Run by DineEquity (NYSE: DIN) | 99% of Stores are Franchised

Tenant: Largest NM Franchisee | 2006 Franchisee of the Year

CORPORATE

IHOP restaurants, one of America’s favorite restaurant chains, are

franchised and operated by Glendale, CA based International House of

Pancakes, Inc. a wholly owned subsidiary of IHOP Corp. IHOP restaurants

feature moderately priced, high-quality food and beverage items, and table

service in an attractive and comfortable atmosphere. Although IHOP

restaurants are best known for their award winning pancakes, omelet's,

and other breakfast specialties, IHOP restaurants are open throughout the

day and evening hours and offer a broad array of lunch, dinner and snack

items as well.

On November 29, 2007 IHOP Corp. successfully completed the acquisition

of Applebee’s International, Inc. for approximately $2.1 billion. With more

than 3,250 restaurants, the combination brings together two leading

restaurant brands and creates the largest full service restaurant company

in the world.

FRANCHISEE (TENANT)

Mr. Adi and his company have been operating IHOPs for over 18 years. As

a multi unit operator of IHOP restaurants, Mr. Adi and his company

currently have six IHOP restaurants in operation, all of which are

profitable. In 2006 Mr. Adi’s company was selected as IHOP’s Franchisee

of the Year. One of Mr. Adi’s locations is also a training store for IHOP,

which is rare, as most IHOP training stores are corporate owned. Mr. Adi’s

company has a Multi-Store Development Agreement with IHOP to build

and operate additional stores in New Mexico. Mr. Adi has personally

guaranteed the subject operating lease, and has a strong financial

statement to support the guarantee. Mr. Adi’s personal financial statement

and financial statements of his restaurants can be made available for

review to qualified investors.

PRICE: $3,253,000

CAP RATE: 8.00%

NOI: $260,179

BUILDING AREA: 4,500 +/- Square Feet

LAND AREA: 1.0 +/- Acre

OCCUPANCY: 100% | Single Tenant

YEAR BUILT: 2011

IHOP RESTAURANT


LEASE OVERVIEW

Lease Expiration (Primary Term): July 2031

Rent Commencement Date: July 2011

Initial Lease Term: 20-Years

Tenant: ADI UNSER INC., a New Mexico Corporation

Rent Increases: 10% Every 5-Years

Year 1-5 Annual Rent (Current): $260,179

Options to Renew: 2, 5-Year Options to Renew

Leasable Area: Approximately 4,500 +/- SF on Approximately 43,560 +/- SF

Lease Type: Absolute NNN, Roof & Structural Elements are Tenant’s Responsibility

Year 6-10 Annual Rent: $286,197


Year 21-25 Annual Rent (Option 1): $380,928


Year 26-30 Annual Rent (Option 2): $419,020

IHOP PHOTOGRAPHS | 4

IHOP RESTAURANT


AERIAL PHOTOGRAPH | 5

IHOP RESTAURANT


Southern & Unser Plaza

Southern Plaza

Cabezon Commons 7.8 Acre Commercial Center

New Presbyterian Hospital 66 Acre Campus, 600 Employees

Maggie Cordova Elementary School

Cabezon Residential Community 3,300 Existing Homes

IMMEDIATE TRADE AREA

IHOP Restaurant is located at the main entrance to Cabezon Residential Community which has 3,300 existing homes, along Unser Boulevard with average daily traffic in excess of 26,000 cars. IHOP, along with Dion’s Pizza, is the first tenant at Cabezon Commons, a 7.8 acre commercial development. Immediately south of the subject property is the new Presbyterian Rio Rancho Medical Center, set to open in Fall 2011. This 66 acre, $165 million facility will employ approximately 400 permanent jobs ($50 million payroll). Directly north of the subject property is a Wal-Mart Super Center and Maggie Cordova Elementary School is directly across the street. Other retailers in the immediate area are as follows: Walgreens, Premier Cinemas, Goodwill, Dollar Tree, Mattress Firm, True Value, Chili’s, Starbucks, McDonald’s, Wendy’s, Burger King, Dairy Queen, KFC, Sonic, Firestone, Discount Tire and O’Reilly Auto.

RIO RANCHO, NEW MEXICO

Rio Rancho is located in the northwest quadrant of the Albuquerque MSA (pop. 877,077), is comprised of 100 square miles and just 30 minutes from Albuquerque and 45 minutes from Santa Fe, the cultural center of the Southwest. Just 30 years old, Rio Rancho is the the third largest city in the state (pop. 87,521), surpassing Santa Fe. Rio Rancho grew 69% from 2000-2010 and is the fastest growing city in New Mexico and one of the fastest growing in the Southwest. Rio Rancho sits at an elevation of approximately 5,290 feet and enjoys a picturesque view of the Sandia Mountains.

The community has been recognized by Money Magazine as one of the 100 best places to live in America in 2005, 2006 and 2010. In April 2008, Fortune Small Business Magazine ranked Rio Rancho as the 83rd best place to live and launch a business in the United States. In November of 2008, Business Week Magazine named Rio Rancho as New Mexico's best place to raise kids in 2009. Rio Rancho received this same honor from the magazine for 2010.

LOCATION OVERVIEW | 6

RIO RANCHO, NEW MEXICO (CONTINUED)

The City has a strong existing business climate anchored by Intel Corporation and complemented by the administrative and manufacturing operations of Hewlett Packard, Bank of America, U.S. Cotton, Lectrosonics, Victoria’s Secret, Sprint PCS, Insight Lighting, Stainless Motors, and ClingZ, Inc. The services, retail, and government sectors are also major components of the local economy. Intel Corporation is by far the largest employer. Rio Rancho is the site of Intel’s Fab 11X, the largest and most advanced semiconductor fabrication plant in the world. The fully-automated, $2 billion facility opened in 2002 and was the first Intel plant to manufacture 300 mm silicon wafers, which can hold almost twice as many chips as the standard 200 mm wafers. Fab 7, Intel's original Rio Rancho plant, closed in 2002 but is being converted into a test facility.

ALBUQUERQUE METROPOLITAN STATISTICAL AREA

Albuquerque is the largest city in the state of New Mexico and the county seat of Bernalillo County. Most residents are attracted to Albuquerque’s sunny and dry climate. Brilliant sunshine defines the region, averaging more than 300 days a year. During the 21st century, the Albuquerque population has continued to grow rapidly, the city proper and metro area population have both increased 13 percent from 2000 to 2006, and this trend is expected to continue. Rated two consecutive years by Forbes Magazine as the #1 and #7 city (respectively) in America to do business in, and #2 in the 2008 Movie Maker Magazine as Best City to Live, Work and Make Movies In, Albuquerque beat out hot spots like Miami, Los Angeles and Las Vegas.

The median price for a single family home is $171,000 and is among the lowest in the southwestern U.S. Much of the housing in Albuquerque is new; however, established neighborhoods retain their desirability and southwestern charm. The Sandia Mountains run along the eastern side of Albuquerque and the Rio Grande flows through the city north to south. Albuquerque lies at the center of the New Mexico Technology Corridor, a band of high-tech private companies and government institutions along the Rio Grande. Larger institutions whose employees contribute to the population are numerous and include Sandia National Laboratories, Kirtland Air Force Base, and the attendant contracting companies which bring highly educated workers to a somewhat isolated region. Intel operates a large semiconductor factory just outside the city boundaries in neighboring Rio Rancho, New Mexico. Presbyterian Rio Rancho Medical Center

IHOP RESTAURANT


LOCATION MAPS | 7

IHOP RESTAURANT


LOCATION MAPS | 8

IHOP RESTAURANT


2010 DEMOGRAPHIC SNAPSHOT

DEMOGRAPHICS | 9

IHOP RESTAURANT


Albuquerque, NM

Intel FAB 11X in Rio Rancho, NM

Largest Semiconductor Fabrication Plant in the World

1 Mile 3 Miles 5 Miles

Population

Total Population 9,249 66,270 121,665

Median Age 40.5 35.6 35.5

Income

Median HH Income $66,502 $64,221 $68,028

Per Capita Income $30,357 $29,414 $30,513

Average HH Income $78,263 $74,925 $75,096

Households

Total Households 4,216 26,941 48,759

Average Household Size 2.4 2.6 2.6

Housing

Owner Occupied Housing Units 3,336 19,949 37,609

Renter Occupied Housing Units 880 6,992 11,150

Vacant Housing Units 0.0757 0.0764 0.0798

Race

White 77.5% 73.9% 74.5%

Black 2.6% 3.1% 2.8%

American Indian, Eskimo, Aleut 3.2% 3.9% 4.0%

Asian 2.3% 1.8% 1.7%

Hawaiian or Pacific Islander 0.2% 0.1% 10.0%

Other 10.1% 12.8% 12.5%

Multirace 4.0% 4.3% 4.4%

Ethnicity

Hispanic 25.9% 31.2% 33.4%

Non-Hispanic 74.1% 68.8% 66.6%

New Presbyterian Hospital 66 Acre Campus, 600 Employees

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