Offering Memorandum

PIZZA HUT335 E White Horse Pike • Galloway, NJ 08205

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. © 2017

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.

PIZZA HUT

Galloway, NJ

ACT ID Y0280961

2

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 02

Acquisition Financing

Sales Comparables

MARKET OVERVIEW 03

Market Analysis

Demographic Analysis

PIZZA HUT

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PIZZA HUT

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INVESTMENT

OVERVIEW

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EXECUTIVE SUMMARY

OFFERING SUMMARY

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PIZZA HUT

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PIZZA HUT

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OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER# OF

EMPLOYEES *Spirit Hllween Sper Stores LLC

5,000

Spencer Gifts Holdings Inc 4,202

Atlanticare 2,523

Atlantcare Rgional Med Ctr Inc

1,119

Mainland Division 1,119

Dolce Seaview 650

Stockton Pac Box Office 550

Press of Atlantic City The 510

Bacharach Inst For Rhblitation 494

Galloway Twp School District 421

Computer Sciences Corporation

400

UPS 319

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2017 Estimate Pop 4,130 35,610 79,060

2017 Census Pop 4,191 35,415 78,104

2017 Estimate HH 1,488 12,662 27,653

2017 Census HH 1,489 12,474 27,082

Median HH Income

$73,713 $61,988 $58,884

Per Capita Income $35,409 $27,839 $27,020

Average HH Income

$98,278 $77,742 $75,367

* # of Employees based on 5 mile radius

OFFERING SUMMARY

Price $1,425,000

Net Operating Income $100,783

Capitalization Rate – Current 7.07%

Price / SF $387.76

Rent / SF $27.42

Lease Type NNN

Gross Leasable Area 3,675 SF

Year Built / Renovated 1991

Lot Size 0.82 acre(s)

FINANCING

Down Payment All Cash

Net Cash Flow 7.07% / $100,783

Cash on Cash Return 7.07%

PIZZA HUT

OFFERING SUMMARY

Personally Guaranteed by 16-Unit Operator

3,675 Single Tenant Building on 0.82 Acres

4 – Five Year Options

1.5% Annual Increases

10+ Years Remaining on Lease

INVESTMENT HIGHLIGHTS

Marcus & Millichap is pleased to exclusively list for sale a 3,675 SF single tenant Pizza Hut located in Galloway, (Atlantic County)

New Jersey. Located on 0.82 acres, Pizza Hut has 10+ years remaining on their NNN lease. Pizza Hut has 4 - five year options

with 1.5% annual increase throughout the option periods. The Pizza Hut has been established in this location for 4+ years. Pizza

Hut is a subsidiary of Yum! Brands, which has a credit rating of Ba3 and a stable future outlook according to Moody's. The lease

is personally guaranteed by a 16-unit operator.

Galloway is a township located in Atlantic County, New Jersey. The subject property is approximately 12 miles northwest of Atlantic

City and approximately 90 miles southwest of New York City. Galloway shares its borders with the municipalities of Egg Harbor

City, Port Republic, Absecon, Brigantine, Pleasantville, and Bass River. The major roads and highway that pass through or near

Galloway are Route 30 (White Horse Pike), the Garden State Parkway, Atlantic City expressway, Route 9, Route 40, Route 87, CR-

50 and CR-322. Galloway is the largest municipality in New Jersey in terms of land area. New Jersey Transit provides bus service to

Atlantic City on bus routes 508, 554 and 559. The subject property is approximately 3 miles east of Atlantic City International

Airport.

Within a 5-mile radius of Galloway, the median household income is $58,884 among the 79,060 individuals who resides within a

5-mile radius of the subject property.

The asking price of $1,425,000 represents a 7.07% cap rate.

INVESTMENT OVERVIEW

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12

TENANT PROFILES

PIZZA HUT

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Pizza Hut

Pizza Hut is an American restaurant chain who offers pizza,

pastas, buffalo wings, breadsticks and desserts. Pizza Hut was

created by two brothers who borrowed $600 dollars from their

mom to open up a pizza shop in Wichita, Kansas. Pizza Hut now

operates more than 16,000 stores around the world through their

corporate stores and franchisee locations. Pizza Hut has a

workforce of more than 350,000 employees in 100 countries.

Pizza Hut headquarters are located in Plano, Texas and is a

subsidiary of Yum! Brands, Inc. who also owns Taco Bell, KFC

and WingStreet. Yum! Brands is a public company whose stock

is traded on the New York Stock Exchange under the ticker

symbol: YUM. As of January 2017, Yum! Brand reported

revenues of $6.37 billion. Moody’s has given Yum! Brands a

credit rating of Ba3 with a stable future outlook.

General Information

Tenant Name Pizza Hut

Website www.pizzahut.com

Parent Company Yum! Brands Inc.

Headquartered Plano, TX

Rentable Square Feet 3,675 SF

Percentage of RBA 100.00%

Lease Commencement 9/29/2014

Lease Expiration 9/30/2029

No. of Locations 16,000 +

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CLOSE PROXIMITY TO:

335 E White Horse Pike, Galloway, NJ 08205

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAMEPIZZA HUT

PRICING AND VALUATION MATRIX

PROPERTY NAMEPIZZA HUT

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LOCATION OVERVIEW

#

335 E White Horse Pike, Galloway, NJ 08205

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAMEPIZZA HUT

PRICING AND VALUATION MATRIX

PROPERTY NAMEPIZZA HUT

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REGIONAL AND LOCAL MAP

AERIAL PHOTO

PIZZA HUT

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AERIAL PHOTO

PIZZA HUT

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PROPERTY PHOTO

PIZZA HUT

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PROPERTY PHOTO

PIZZA HUT

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PROPERTY PHOTO

PIZZA HUT

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PROPERTY PHOTO

PIZZA HUT

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PROPERTY PHOTO

PIZZA HUT

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SITE MAP

PIZZA HUT

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PIZZA HUT

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FINANCIAL

ANALYSIS

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PROPERTY SUMMARY

OFFERING SUMMARY

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PIZZA HUT

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OFFERING SUMMARY

NOTES: Income is Based On October 1, 2018 Rent. Landlord Responsible for Roof, Structure, & Parking Lot.

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

$5.1 billion

total national

volume in 2016

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 1,651

debt and equity

financings

in 2016

ACQUISITION FINANCING

PIZZA HUT

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PIZZA HUT

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MARKET

OVERVIEW

MARKET OVERVIEW

OVERVIEW

SOUTHERN NEW JERSEY

Southern New Jersey encompasses the counties of Burlington, Camden,

Gloucester, Atlantic, Salem, Cumberland and Cape May. The region is

home to 1.9 million residents. Camden and Burlington counties account

for approximately half of the market’s population. The eastern coast is

largely a resort area, while the western portion has the highest population

density and contains a well-developed transportation infrastructure.

Once reliant on the agricultural industry, Southern New Jersey now has an expanding number of

businesses in the professional and business services sector, consisting largely of small businesses with

less than 15 workers.

The services sector employs a large portion of the labor force, forming the backbone of the local economy

through hospitals, schools, hotels, business and social services, and entertainment facilities.

The region boasts a large tourism and recreation industry, especially in Atlantic City, where gaming

generates billions of dollars of revenue each year.

Fortune 500 company Campbell’s Soup is headquartered in the region.

1.9M

2016POPULATION:

690K

2016HOUSEHOLDS:

40.1

2016MEDIAN AGE:

$64,000

2016 MEDIAN HOUSEHOLD INCOME:

DEMOGRAPHICS

U.S. Median:

37.7U.S. Median:

$57,2002.8%

Growth2016-2021*:

2.4%

Growth2016-2021*:

1

ECONOMY

METRO HIGHLIGHTS

* Forecast

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

PIZZA HUT

DIVERSIFIED EMPLOYMENT BASE

The region’s economy is moving away from agriculture to a more diversified

employment base that includes business services, hospitality and tourism.

FAA’S WILLIAM J. HUGHES TECHNICAL CENTER

The center is one of the nation’s premier aviation research, development, test

and evaluation facilities, employing engineers and technicians.

THREE DISTINCT AREAS IN ONE REGION

Atlantic and Cape May counties are tourism-based. Greater Philadelphia is the

main business center in the metro, while Cumberland and Salem counties are

primarily agricultural.

PROPERTY NAME

MARKETING TEAM

PIZZA HUT

DEMOGRAPHICS

Source: © 2017 Experian

Created on January 2018

POPULATION 1 Miles 3 Miles 5 Miles

2022 Projection

Total Population 4,224 37,526 82,518

2017 Estimate

Total Population 4,130 35,610 79,060

2010 Census

Total Population 4,191 35,415 78,104

2000 Census

Total Population 3,968 32,334 67,620

Current Daytime Population

2017 Estimate 2,191 33,312 81,225

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

2022 Projection

Total Households 1,548 13,441 29,087

2017 Estimate

Total Households 1,488 12,662 27,653

Average (Mean) Household Size 2.80 2.76 2.72

2010 Census

Total Households 1,489 12,474 27,082

2000 Census

Total Households 1,350 11,351 23,521

Occupied Units

2022 Projection 1,548 13,441 29,087

2017 Estimate 1,547 13,654 29,898

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

2017 Estimate

$150,000 or More 11.99% 7.71% 7.50%

$100,000 - $149,000 19.51% 14.53% 13.75%

$75,000 - $99,999 17.23% 16.07% 14.83%

$50,000 - $74,999 24.52% 20.99% 21.44%

$35,000 - $49,999 10.45% 14.09% 14.32%

Under $35,000 16.30% 26.61% 28.17%

Average Household Income $98,278 $77,742 $75,367

Median Household Income $73,713 $61,988 $58,884

Per Capita Income $35,409 $27,839 $27,020

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

$86,968 $77,059 $74,911

Consumer Expenditure Top 10 Categories

Housing $25,015 $22,172 $21,621

Transportation $16,098 $13,692 $13,456

Shelter $16,004 $14,231 $13,869

Personal Insurance and Pensions $8,594 $7,128 $6,686

Food $7,479 $6,717 $6,548

Health Care $5,366 $4,527 $4,411

Utilities $4,781 $4,280 $4,198

Entertainment $3,410 $2,880 $2,773

Education $3,271 $2,557 $2,305

Cash Contributions $2,238 $1,746 $1,685

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

Population By Age

2017 Estimate Total Population 4,130 35,610 79,060

Under 20 23.62% 25.26% 25.63%

20 to 34 Years 16.07% 19.38% 20.82%

35 to 39 Years 5.10% 5.69% 5.72%

40 to 49 Years 13.55% 13.08% 12.42%

50 to 64 Years 25.60% 22.50% 20.64%

Age 65+ 16.06% 14.10% 14.76%

Median Age 44.13 39.71 38.10

Population 25+ by Education Level

2017 Estimate Population Age 25+ 2,898 24,108 52,001

Elementary (0-8) 2.59% 3.37% 3.97%

Some High School (9-11) 5.97% 8.62% 8.71%

High School Graduate (12) 33.27% 34.67% 34.58%

Some College (13-15) 21.17% 21.33% 21.36%

Associate Degree Only 9.50% 6.49% 6.35%

Bachelors Degree Only 20.23% 17.05% 16.26%

Graduate Degree 6.08% 6.75% 6.96%

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Income

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

$58,884, compare this to the US average which is currently $56,286.

The median household income for your area has changed by 27.08%

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

area will be $68,138 five years from now, which represents a change

of 15.72% from the current year.

The current year per capita income in your area is $27,020, compare

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

household income in your area is $75,367, compare this to the US

average which is $81,217.

Population

In 2017, the population in your selected geography is 79,060. The

population has changed by 16.92% since 2000. It is estimated that

the population in your area will be 82,518.00 five years from now,

which represents a change of 4.37% from the current year. The

current population is 47.36% male and 52.64% female. The median

age of the population in your area is 38.10, compare this to the US

average which is 37.83. The population density in your area is

1,005.26 people per square mile.

Households

There are currently 27,653 households in your selected geography.

The number of households has changed by 17.57% since 2000. It is

estimated that the number of households in your area will be 29,087

five years from now, which represents a change of 5.19% from the

current year. The average household size in your area is 2.72 persons.

Employment

In 2017, there are 39,181 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

50.89% of employees are employed in white-collar occupations in

this geography, and 48.88% are employed in blue-collar occupations.

In 2017, unemployment in this area is 9.55%. In 2000, the average

time traveled to work was 24.00 minutes.

Race and Ethnicity

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

54.57% White, 19.84% Black, 0.03% Native American and 10.11%

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 23.36% of the current year

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

17.88%.

PROPERTY NAME

MARKETING TEAM

PIZZA HUT

Housing

The median housing value in your area was $198,781 in 2017,

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

16,834 owner occupied housing units in your area and there were

6,687 renter occupied housing units in your area. The median rent at

the time was $655.

Source: © 2017 Experian

DEMOGRAPHICS

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