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									APPLEBEE'S RESTAURANT
Beaumont, CA

Offering Memorandum

APPLEBEE'S RESTAURANT Beaumont, CA

Confidentiality Agreement

The 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.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed 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. © 2006 Marcus & Millichap N0210118

APPLEBEE'S RESTAURANT Beaumont, CA

Table of Contents

SECTION 1 - Pricing & Financial Analysis

SECTION 2 - Property Description

SECTION 3 - Recent Sales

SECTION 4 - Demographic Analysis

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed 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. © 2006 Marcus & Millichap N0210118

APPLEBEE'S RESTAURANT Beaumont, CA

PRICING & FINANCIAL ANALYSIS

APPLEBEE'S RESTAURANT Beaumont, CA
SUMMARY
Price Down Payment Rentable Square Feet Price/Square Foot Cap Rate Net Cash Flow After Debt Service Year Built Lot Size Type of Ownership 1585 East 6th Street, Beaumont, CA 92223 3,400,000 100.0% $3,400,000 5,814 $584.80 6.00% 6.0% $204,000 2006 1.14 Acres Fee Simple Total Return

Financial Summary
ANNUALIZED OPERATING DATA
Rent Increases Years 6-10 Years 11-15 Years 16-20 Option 1 Option 2 Option 3 Option 4 Base Rent ($35.09/SF) Net Operating Income (NOI) Rent $219,300 $235,747 $253,428 $272,435 $292,868 $314,833 $338,446 $204,000 $204,000 6.0% $204,000

TENANT SUMMARY - Sale/Leaseback
Tenant Trade Name Ownership Tenant Lease Guarantor Lease Type Roof and Structure Lease Term Lease Commencement Date Rent Commencement Date Lease Expiration Date Term Remaining on Lease Increases Options Applebee's Private Franchisee Franchisee Absolute Net Tenant Responsible 20 Years Upon Closing Upon Closing 20 Years from Commencement 20 Years 7.5% Every 5 Years Four, 5-Year Options to Extend

FINANCING SUMMARY
Terms All Cash or New Financing

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed 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. © 2006 Marcus & Millichap N0210118

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APPLEBEE'S RESTAURANT Beaumont, CA

Tenant Overview
Sale/Leaseback

Property Name: Property Address: Property Type: Rentable Area: Tenant Trade Name: Tenant: Ownership: Lease Guarantor: Lease Commencement Date: Rent Commencement Date: Lease Expiration Date: Term Remaining on Lease: Lease Type: Roof and Structure: Lease Term: Year 1 Net Operating Income: Increases: Options to Renew: First Right of Refusal: No. of Locations: Headquarters: Franchisee Profile: Years in the Business: Other Concepts Owned: Description:

Applebee's Restaurant 1585 East 6th Street Beaumont, CA 92223 Net Leased Restaurant - Other 5,814 SF Applebee's Franchisee Private Franchisee Upon Closing Upon Closing 20 Years from Commencement Date 20 Years Absolute Net Tenant Responsible 20 Years $204,000 7.5% Every 5 Years Four, 5-Year Options to Renew Yes 22 Minot, ND 17 Village Inn, Up the Creek Fish Camp & Grill, and Space Alien Grill & Bar The operator owns and operates twenty-two Applebee's throughout North Dakota, Minnesota, Arizona, and California. The Franchisee has successfully developed, owned, and operated their franchises for seventeen years.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed 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. © 2006 Marcus & Millichap N0210118

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APPLEBEE'S RESTAURANT Beaumont, CA

PROPERTY DESCRIPTION

APPLEBEE'S RESTAURANT Beaumont, CA

Investment Overview
The Lease:
Upon closing will commence a new 20-year Absolute NNN lease with 7.5 percent increases in rent every five years and during each option period. There are four, five-year options to extend.

Applebee's Neighborhood Grill & Bar:
According to "Nation's Restaurant News" Applebee’s Neighborhood Grill & Bar is the largest casual dining concept in America both in terms of number of restaurants and market share, and is the tenth largest restaurant chain in U.S. system-wide sales. As of December 2005, there were 1,804 Applebee’s Neighborhood Grill & Bar restaurants, of which 1,318 were operated by franchisees and 486 were operated by the company. Applebee's has locations in 49 states and 16 international countries. Its eateries are primarily freestanding units (some located in shopping areas) decorated with local memorabilia to give each location an indigenous feel. The menu features beef, chicken, and pork items, as well as burgers, pasta, and seafood. Applebee's is known as "America's Favorite Neighbor" with highquality food and beverage items, table service, and a comfortable atmosphere that appeals to all ages.

Investment Highlights
• • • • • New 20 Year Absolute NNN Lease 7.5% Rental Increases Every 5 Years Sale Leaseback with an Experienced 22 Unit Operator New Construction High Growth Market

For each of the past 13 years (1993-2005), Applebee's has opened 100 or more new restaurants. This rate of development - growing from 250 restaurants at the end of 1992 to more than 1,800 currently - is unprecedented in the casual dining industry. Applebee's currently estimates the development potential of the concept to be at least 3,000 restaurants in the United States. The Applebee's system is approximately 75 percent franchised and 25 percent company owned. There are 46 domestic Applebee's franchisees.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed 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. © 2006 Marcus & Millichap N0210118

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APPLEBEE'S RESTAURANT Beaumont, CA

Beaumont Development

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed 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. © 2006 Marcus & Millichap N0210118

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APPLEBEE'S RESTAURANT Beaumont, CA

Location Overview
Beaumont, CA:
The city of Beaumont is located in Riverside County, California with a population of 25,000 in the San Gorgonio Mountain Pass. The city is located 80 miles from San Diego (population of 1,223,400) and 29 miles from Riverside, CA (population of 255,166). Continuously growing, the city has experienced a 100 percent increase in their population during the last five years, and is expected to grow to 31,000 by the end of 2006. They are located in the second fastest population growth region in the US. To keep up with it's growth the city is spending $2 billion in construction of new homes and commercial investments including a regional shopping center at US Interstate 10 and highway SR 60, and a new logistics center at the corner of 4th and highway 60 (Riverside). In the year 2000, just under 500 building permits were received. In 2006, 4,200 building permits were received. New national tenants will include Home Depot, Wal-Mart, Best Buy, Staples, Petco, Bed Bath & Beyond, Ross, Kohl's, Wick's Furniture, Wells Fargo, Bank of America, Rite Aid and more. The city already includes two 4-Star golf courses and a new 20-acre sports park. With easy access to major transportation routes; the city is convenient to Los Angeles, San Diego, and Southern California’s mountains and beaches.

•

Surrounded by New Development Including a New Wal-Mart and Home Depot

•

Located 1 Block North of Interstate 10 (Daily Traffic Count of over 50,000 Vehicles)

Subject Property:
The subject property is located one block off of major US Interstate 10 (running east and west through town) on 6th Avenue. Just north of the property is Gorgonio Memorial Hospital, a 70 bed primary care facility that serves over 50,000. The hospital is currently expanding their center to be completed by August of 2008. Total construction costs equal $126 million. The property is also strategically located near many national retailers including K-mart, Albertsons, Walgreens, Rite Aid, Starbucks, and Sprint.

•

The City's Population has Doubled over the Past 5 Years, and is Expected to Rise Another 24% by the End of 2006

•

Near Many National Retailers Including K-Mart, Albertsons, Rite Aid, Walgreens, and Starbucks

•

Centrally Located Between Major Cities Los Angeles and San Diego

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed 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. © 2006 Marcus & Millichap N0210118

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APPLEBEE'S RESTAURANT Beaumont, CA

Location & Regional Maps

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed 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. © 2006 Marcus & Millichap N0210118

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APPLEBEE'S RESTAURANT Beaumont, CA

Aerial Photo

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed 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. © 2006 Marcus & Millichap N0210118

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APPLEBEE'S RESTAURANT Beaumont, CA

RECENT SALES

APPLEBEE'S RESTAURANT Beaumont, CA

Recent Sales

Subject

Applebee's Restaurant 1585 East 6th Street Beaumont, CA 92223 Closing Date: Rentable SF: Year Built: On Market 5,814 2006

Sales Price/ % Down

CAP Rate

Price/ SF

3,400,000 100.0%

6.00%

$584.80

1

Applebee's Orchard Street & Mooney Street Visalia, CA 93277

Sales Price/ % Down

CAP Rate

Price/ SF

$2,020,000 Closing Date: Rentable SF: Year Built: 8/8/2006 32,234 2002 100%

5.94%

$63.00

2

Outback Steakhouse 4880 Marsh Road Okemos, MI 48864

Sales Price/ % Down

CAP Rate

Price/ SF

$1,694,915 Closing Date: Rentable SF: Year Built: 9/18/2006 10,000 2006 100%

5.90%

$169.00

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed 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. © 2006 Marcus & Millichap N0210118

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APPLEBEE'S RESTAURANT Beaumont, CA

Recent Sales

3

Sizzler 5989 Mowry Avenue Newark, CA 94560

Sales Price/ % Down

CAP Rate

Price/ SF

$2,050,000 Closing Date: Rentable SF: Year Built: 6/19/2006 6,700 1986 100%

5.86%

$306.00

4

Lone Star Restaurant 955 Montecito Avenue Corona, CA 92879

Sales Price/ % Down

CAP Rate

Price/ SF

$4,050,000 Closing Date: Rentable SF: Year Built: 12/16/2005 6,250 2005 100%

5.85%

$648.00

5

Sizzler 871 North Main Street Bishop, CA 93514 Closing Date: Rentable SF: Year Built: 6/20/2006

Sales Price/ % Down

CAP Rate

Price/ SF

$1,075,000 100%

5.72%

$244.00

4,406 1975

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed 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. © 2006 Marcus & Millichap N0210118

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APPLEBEE'S RESTAURANT Beaumont, CA

DEMOGRAPHIC ANALYSIS

APPLEBEE'S RESTAURANT Beaumont, CA

Population Density

Demographic data © 2005 by Experian/Applied Geographic Solutions.

Number of people living in a given area per square mile.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed 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. © 2006 Marcus & Millichap N0210118

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APPLEBEE'S RESTAURANT Beaumont, CA

Employment Density

Demographic data © 2005 by Experian/Applied Geographic Solutions.

The number of people employed in a given area per square mile.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed 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. © 2006 Marcus & Millichap N0210118

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APPLEBEE'S RESTAURANT Beaumont, CA

Average Household Income

Demographic data © 2005 by Experian/Applied Geographic Solutions.

Average income of all the people 15 years and older occupying a single housing unit.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed 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. © 2006 Marcus & Millichap N0210118

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APPLEBEE'S RESTAURANT Beaumont, CA

Traffic Counts

Traffic Count data © 2005 by GDT. All rights reserved.

Two-way, average daily traffic volumes.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed 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. © 2006 Marcus & Millichap N0210118

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APPLEBEE'S RESTAURANT Beaumont, CA

Summary Report

Geography: 5 Miles
Population

In 2005, the population in your selected geography is 48,856. The population has changed by 19.43% since 2000. It is estimated that the population in your area will be 56,328 five years from now, which represents a change of 15.29% from the current year. The current population is 48.30% male and 51.70% female. The median age of the population in your area is 38.5, compare this to the US average which is 36.3. The population density in your area is 622.05 people per square mile.

Households
There are currently 18,475 households in your selected geography. The number of households has changed by 20.39% since 2000. It is estimated that the number of households in your area will be 21,473 five years from now, which represents a change of 16.23% from the current year. The average household size in your area is 2.59 persons.

Income
In 2005, the median household income for your selected geography is $36,082, compare this to the US average which is currently $46,350. The median household income for your area has changed by 8.81% since 2000. It is estimated that the median household income in your area will be $39,639 five years from now, which represents a change of 9.86% from the current year. The current year per capita income in your area is $18,846, compare this to the US average, which is $23,594. The current year average household income in your area is $47,212, compare this to the US average which is $61,553.

Race & Ethnicity
The current year racial makeup of your selected area is as follows: 73.79% White, 5.01% Black, 1.41% Native American and 4.21% Asian/Pacific Islander. Compare these to US averages which are: 75.69% White, 12.15% Black, 0.83% Native American and 4.29% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 33.39% of the current year population in your selected area. Compare this to the US average of 14.45%.

Housing
The median housing value in your area was $108,927 in 2000, compare this to the US average of $115,194 for the same year. In 2000, there were 10,826 owner occupied housing units in your area and there were 4,520 renter occupied housing units in your area. The median rent at the time was $444.

Employment
In 2005, there are 9,896 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 52.7% of employees are employed in white-collar occupations in this geography, and 47.3% are employed in blue-collar occupations. In 2005, unemployment in this area is 6.58%. In 2000, the median time traveled to work was 18.9 minutes.

Demographic data © 2005 by Experian/Applied Geographic Solutions.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed 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. © 2006 Marcus & Millichap N0210118

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APPLEBEE'S RESTAURANT Beaumont, CA

Demographic Report
1 Miles: 3 Miles: 20,357 24,333 28,921 33,201 7,998 9,866 11,820 13,678 2.41 6,549 $100,652 $115,367 66.1% 25.7% 8.23% 70.2% 26.5% 3.30% 70.9% 26.0% 3.13% 17.9% 16.4% 14.1% 16.3% 18.1% 8.9% 4.3% 1.8% 1.2% 0.4% 0.7% $36,371 $19,613 $46,266 5 Miles: 36,177 40,908 48,856 56,328 13,328 15,345 18,475

Population 1990 Population 2000 Population 2005 Population 2010 Population Households 1990 Households 2000 Households 2005 Households 2010 Households 2005 Average Households Size Employment 2005 Daytime Population Summary Housing Information 1990 Median Housing Value 2000 Median Housing Value 2000 Owner Occupied Housing Units 2000 Renter Occupied Housing Units 2000 Vacant 2005 Owner Occupied Housing Units 2005 Renter Occupied Housing Units 2005 Vacant 2010 Owner Occupied Housing Units 2010 Renter Occupied Housing Units 2010 Vacant 2005 Households by Income $ 0 - $ 14,999 $ 15,000 - $24,999 $ 25,000 - $34,999 $ 35,000 - $49,999 $ 50,000 - $74,999 $ 75,000 - $99,999 $100,000 - $124,999 $125,000 - $149,999 $150,000 - $200,000 $200,000 to $249,999 $250,000 + 2005 Income Median Households Income Per Capita Income Average Households Income

3,004 3,415 4,116 4,782 1,201 1,431 1,732

2,023
2.33 916 $97,173 $113,325 53.4% 36.8% 9.79% 56.5% 38.7% 4.86% 56.7% 38.6% 4.73% 24.9% 16.0% 13.6% 12.6% 17.5% 7.6% 4.1% 1.4% 0.7% 0.3% 1.5% $30,929 $20,672 $47,816

21,473
2.59 9,896 $95,151 $108,927 64.5% 26.9% 8.60% 68.5% 27.8% 3.69% 69.1% 27.3% 3.54% 18.0% 16.8% 13.9% 16.3% 17.6% 8.9% 4.3% 1.8% 1.2% 0.4% 0.8% $36,082 $18,846 $47,212

Demographic data © 2005 by Experian/Applied Geographic Solutions.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed 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. © 2006 Marcus & Millichap N0210118

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APPLEBEE'S RESTAURANT
Beaumont, CA

Exclusively Listed By:

Portland Office 1800 Southwest First Avenue Suite 110 Portland, OR 97201 Tel: (503) 220-2333 Fax: (503) 220-2155


								
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