WENDY'S

INVESTMENT HIGHLIGHTS

Passive NNN Ground Lease

• The site operates under a ground lease lease structure, making it a fully passive investment. There is strong potential for upside either through lease renegotiation or the above-average rent increases built into the option periods.
• There are four remaining option periods. The first option includes a two-year term with a 10% rent increase, while the subsequent three options each feature five-year terms, each with 15% rent increases.

Rare Opportunity | Well Below Replacement Cost

• Land value value in the area trades at around $60.00 PSF. Currently, Wendy’s is paying $22.92 PSF of GLA with market rent hovering around $60.00 PSF for a drive-thru building, allowing an investor significant upside potential by capturing market rent.
• The adjacent northern property recently sold for $2.2 million, equating to $58.64 per square foot of land.

Corporate Guaranty with Long Store History

• The lease features a corporate guarantee from Wendy’s Old Fashioned Hamburgers of New York, LLC. They assumed responsibility of the lease in 2007 from the previous franchisee. Wendy’s opened for operations at this location in 1992.

High Traffic Location

• The site sees nearly 30,000 visitors per month placing this site in the top 25th percentile of all Wendy’s locations nationwide and the top 20th percentile in the state of Utah.
• The site sits directly on South State Street which sees over ±47,900 vehicles per day and just off of University Parkway, home to Orem’s primary retail corridor, which sees north of ±45,700 vehicles per day.

Orem’s Primary Retail Corridor

• University Pkwy and S State St make up Orem’s Primary retail corridor. University Pkwy is home to the University Place Shopping Mall, as well as dozens of other national brands such as: Walmart Supercenter, Trader Joe’s, Lowe’s Home Improvement, In-N-Out Burger, Texas Roadhouse, Chilli’s, Swig, Staples, Burlington, O’Reilly Auto Parts, multiple hotels and car dealerships and hundreds of regional and local stores.