Offering Memorandum

ROY ROGERS39 State Route 31 • Flemington, NJ 08822

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.

ROY ROGERS

Flemington, NJ

ACT ID Z0281035

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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 02

Acquisition Financing

MARKET OVERVIEW 03

Demographic Analysis

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INVESTMENT

OVERVIEW

OFFERING SUMMARY

Price $1,410,000

Net Operating Income $88,000

Capitalization Rate – Current 6.24%

Price / SF $471.57

Rent / SF $29.43

Lease Type Absolute Net

Gross Leasable Area 2,990 SF

Year Built / Renovated 2015 / 2008

Lot Size 0.67 acre(s)

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EXECUTIVE SUMMARY

OFFERING SUMMARY

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FINANCING

Down Payment All Cash

Net Cash Flow 6.24% / $88,000

Cash on Cash Return 6.24%

Total Return 6.24% / $88,000

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OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER# OF EMPLOYEES

*

HUNTERDON HEALTH CARE 1,950

Hunterdon Medical Center 1,016

Rgr Industries 500

Wakefern Food Corp 400

DEER-PATH FAMILY YMCA 350

Wbm International 300

Johanna Foods Inc 277

Human Services New Jersey Dept 256

Grom 250

Healthquest Central Jersey LLC 250

3M 200

Home Depot The 200

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2018 Estimate Pop 7,858 22,060 34,456

2010 Census Pop 7,924 22,275 34,825

2018 Estimate HH 3,557 8,427 12,862

2010 Census HH 3,554 8,437 12,904

Median HH Income $69,297 $100,982 $108,852

Per Capita Income $49,008 $54,493 $57,439

Average HH Income $107,632 $142,129 $153,503

* # of Employees based on 5 mile radius

ROY ROGERS

OFFERING SUMMARY

20 Year Absolute NNN Lease (Over 16 Years Remaining)

Two -Five Year Options with Ten Percent Increase Every 5 Years

Next Increase in April 2025

Franchisee and Personal Guaranty (12 Month Rolling)

High Traffic Retail Hub with 48,000 + VPD at Intersection of Route

31 & Route 202

Average Household Income of $151,755 in 5-mile Radius

INVESTMENT HIGHLIGHTS

Marcus & Millichap is pleased to exclusively list for sale a 2,990 square foot single tenant Roy Rogers located in Flemington, (Hunterdon

County) New Jersey. Located on 0.67 acres, Roy Rogers has 16+ years remaining on their absolute NNN lease. There are ten percent rental

increases every five years. The next increase will occur in April, 2025. Roy Rogers has been established in this location for over three years

and the lease is personally guaranteed by the business operator along with the franchisee.

The subject property is well positioned on Route 31, allowing for easy accessibility to numerous large national tenants and retailers such as

Costco, ShopRite, Burlington Coat Factory and numerous large retail shopping centers all well within a quarter mile from the subject

property. Roy Rogers is positioned near the intersection of Route 31 and Route 202, which has more than 48,000 vehicles passing by per

day. There are various retail and institutional facilities all within a one mile radius. The trade area has a large student population with

Hunterdon Central Regional High School and Hunterdon County Polytech less than a quarter mile from Roy Rodgers.

Flemington is a borough located in Hunterdon County, New Jersey. The subject property is approximately 57 miles southwest of New York

City, 50 miles northeast of Philadelphia, PA, and 25 miles northeast of Trenton, NJ. Flemington is the county seat for Hunterdon County.

Within a five-mile radius of Flemington, the average household income is $151,755 among the 34,260 individuals who resides within a five-

mile radius of the subject property.

The asking price of $1,410,000 represents a 6.24 percent cap rate.

INVESTMENT OVERVIEW

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12

TENANT PROFILES

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Roy Rodgers

Roy Rogers is an American fast food chain specializing in burgers, fried chicken, and roast beef

sandwiches. Roy Rogers headquarters are in Frederick, MD along with 50+ retail locations in the

Mid-Atlantic and Northeastern regions of the United States. The first Roy Rogers was founded by

the Marriott Corporation in 1968 in the town of Falls Church, Virginia. Roy Rogers Franchise

Company, LLC is privately owned by Plamondon Companies, the sons of Peter Plamondon Sr,

who was head of the restaurant

General Information

Tenant Name Roy Rodgers

Website www.royrogers.com

Parent Company Plamondon Companies

Headquartered Frederick, MD

Rentable Square Feet 2,990 SF

Percentage of RBA 100.00%

Lease Commencement 4/7/2015

Lease Expiration 4/6/2035

No. of Locations 54+

#

CLOSE PROXIMITY TO:

39 State Route 31, Flemington, NJ 08822

20 Year Absolute NNN Lease (16+ Years

Remaining)

2-5 Year Options with 10% Increase Every 5 Years

Next Increase in April 2025

Franchisee & Personal Guaranty (12 Month Rolling)

Average Household Income of $151,755 in 5-Mile

Radius

48,000+ VPD at Intersection of Route 31 & Route

202

Flemington is a borough located in Hunterdon County,

New Jersey. The subject property is approximately 57

miles southwest of New York City, 50 miles northeast of

Philadelphia, PA, and 25 miles northeast of Trenton, NJ.

Flemington is the county seat for Hunterdon County. The

subject property is located within the borough’s

Community Business Zone which includes a number of

large scale retail centers. The major roadways that cut

through the borough are U.S. Route 202, Route 12 and

31 along with County Route 523. Trans-Bridge Lines

provides bus service for Flemington to destinations such

as: Doylestown/Bethlehem, PA; Newark Liberty

International Airport; John F. Kennedy International

Airport; and Port Authority Bus Terminal in Midtown,

Manhattan. Local bus service is provided by Hunterdon

County’s “Flemington Shuffle” as well as the Cross

County Service, which offers demand-response service

to all municipalities in Hunterdon County.

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAMEROY ROGERS

PRICING AND VALUATION MATRIX

PROPERTY NAMEROY ROGERS

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LOCATION OVERVIEW

#

39 State Route 31, Flemington, NJ 08822

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAMEROY ROGERS

PRICING AND VALUATION MATRIX

PROPERTY NAMEROY ROGERS

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REGIONAL AND LOCAL MAP

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Subject

Property

Walgreens

Hunterdon Central Regional

High School

Hunterdon County

Polytech

Flemington Mall

The Shoppes @ Flemington

Hunterdon Shopping Center

Flemington Circle Shopping Center

Hunter Hills

Apartments

180 Units

Liberty Village Outlets

AERIAL PHOTO

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PROPERTY PHOTO

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PROPERTY PHOTO

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PROPERTY PHOTO

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PROPERTY PHOTO

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PROPERTY PHOTO

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PROPERTY PHOTO

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PROPERTY PHOTO

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PROPERTY PHOTO

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Marcus & Millichap closes

more transactions than any

other brokerage firm.

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PROPERTY PHOTO

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FINANCIAL

ANALYSIS

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PROPERTY SUMMARY

OFFERING SUMMARY

#

NOTES: Personal Guarantee – 12 Month Rolling

ROY ROGERS

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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

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MARKET

OVERVIEW

PROPERTY NAME

MARKETING TEAM

ROY ROGERS

DEMOGRAPHICS

Source: © 2018 Experian

Created on March 2019

POPULATION 1 Miles 3 Miles 5 Miles

2023 Projection

Total Population 7,984 22,855 35,808

2018 Estimate

Total Population 7,858 22,060 34,456

2010 Census

Total Population 7,924 22,275 34,825

2000 Census

Total Population 7,301 20,231 32,144

Current Daytime Population

2018 Estimate 12,052 28,247 36,539

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

2023 Projection

Total Households 3,666 8,815 13,471

2018 Estimate

Total Households 3,557 8,427 12,862

Average (Mean) Household Size 2.37 2.62 2.66

2010 Census

Total Households 3,554 8,437 12,904

2000 Census

Total Households 3,308 7,557 11,698

Occupied Units

2023 Projection 3,666 8,815 13,471

2018 Estimate 3,811 8,941 13,652

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

2018 Estimate

$150,000 or More 19.49% 30.49% 34.39%

$100,000 - $149,000 16.38% 19.97% 19.71%

$75,000 - $99,999 10.11% 10.37% 10.11%

$50,000 - $74,999 18.85% 14.33% 13.30%

$35,000 - $49,999 11.44% 8.42% 7.62%

Under $35,000 23.73% 16.43% 14.88%

Average Household Income $107,632 $142,129 $153,503

Median Household Income $69,297 $100,982 $108,852

Per Capita Income $49,008 $54,493 $57,439

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

$73,680 $84,824 $87,401

Consumer Expenditure Top 10 Categories

Housing $23,291 $26,509 $27,178

Shelter $14,986 $16,922 $17,338

Transportation $10,331 $11,972 $12,459

Personal Insurance and Pensions $7,479 $9,550 $10,030

Food $6,649 $7,757 $8,043

Health Care $4,917 $5,855 $6,052

Utilities $4,481 $5,191 $5,370

Entertainment $2,492 $2,884 $2,976

Education $2,460 $3,144 $3,298

Gifts $1,958 $2,365 $2,515

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

Population By Age

2018 Estimate Total Population 7,858 22,060 34,456

Under 20 21.57% 23.41% 23.43%

20 to 34 Years 20.59% 16.56% 15.34%

35 to 39 Years 7.12% 5.76% 5.31%

40 to 49 Years 14.04% 14.25% 14.06%

50 to 64 Years 21.90% 24.50% 25.85%

Age 65+ 14.78% 15.51% 16.00%

Median Age 40.56 43.60 45.00

Population 25+ by Education Level

2018 Estimate Population Age 25+ 5,670 15,553 24,349

Elementary (0-8) 3.52% 2.26% 1.77%

Some High School (9-11) 4.90% 3.13% 2.82%

High School Graduate (12) 23.27% 20.01% 19.67%

Some College (13-15) 18.79% 16.71% 16.14%

Associate Degree Only 6.69% 7.29% 7.38%

Bachelors Degree Only 24.59% 29.22% 29.97%

Graduate Degree 17.57% 20.89% 21.79%

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Income

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

$108,852, compare this to the US average which is currently $58,754.

The median household income for your area has changed by 37.49%

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

area will be $126,906 five years from now, which represents a change

of 16.59% from the current year.

The current year per capita income in your area is $57,439, compare

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

household income in your area is $153,503, compare this to the US

average which is $84,609.

Population

In 2018, the population in your selected geography is 34,456. The

population has changed by 7.19% since 2000. It is estimated that the

population in your area will be 35,808.00 five years from now, which

represents a change of 3.92% from the current year. The current

population is 48.53% male and 51.47% female. The median age of

the population in your area is 45.00, compare this to the US average

which is 37.95. The population density in your area is 438.00 people

per square mile.

Households

There are currently 12,862 households in your selected geography.

The number of households has changed by 9.95% since 2000. It is

estimated that the number of households in your area will be 13,471

five years from now, which represents a change of 4.73% from the

current year. The average household size in your area is 2.66 persons.

Employment

In 2018, there are 20,883 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

75.14% of employees are employed in white-collar occupations in

this geography, and 24.77% are employed in blue-collar occupations.

In 2018, unemployment in this area is 2.93%. In 2000, the average

time traveled to work was 35.00 minutes.

Race and Ethnicity

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

86.60% White, 2.14% Black, 0.15% Native American and 6.61%

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 9.41% of the current year

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

18.01%.

PROPERTY NAME

MARKETING TEAM

ROY ROGERS

Housing

The median housing value in your area was $434,714 in 2018,

compare this to the US average of $201,842. In 2000, there were

9,364 owner occupied housing units in your area and there were

2,334 renter occupied housing units in your area. The median rent at

the time was $802.

Source: © 2018 Experian

DEMOGRAPHICS

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