Carl’s Jr

[ REPRESENTATIVE PHOTO ]

20-year absolute net lease withrental increases every 5 years1014 W. Joe Harvey Blvd, Hobbs, NM 88240

[ www.CapitalPacific.com ]

ReNtaBle SF . . . . . . . . . . . . . . . 2,997 SF

laNd aRea . . . . . . . . . . . . . . . 0 .85 Acres

BUIlt . . . . . . . . . . . . . . . . . . . . May 1, 2016

leaSe exPIRatIoN . . . . . . . . . April 30, 2036

PRICE: $2,308,333CAP: 6.00%

Listing TeamContact Info

John Andreinijandreini@capitalpacific .com | (415) 274-2715CA BRE# 01440360

Capital Pacific collaborates . Click here to meet the rest of our San Francisco team .

fREEstAndIng dRIvE-thRu REstAuRAnt loCAtEd ACRoss fRom thE homE dEPot

Listed in Conjunction with NM Licensed Broker:Sean McMullan, McMullan & Company Real Estatesean@mcmullanrealestate .com | (505) 259-6223

PROperty Summary

[ Surrounding area retail ]

CARL’S jR | 2

the average household income within a one mile radius is over $91,000

investment highlights

Area retailers include Walmart, Lowe’s, The Home Depot, Buffalo Wild Wings, Applebee’s, and many others .

Population growth in one, three, and five mile radii

tenant highlights

Carls jr . 2014 sales were $1 .5 billion

Over 1,300 locations

guarantor

Franchisee since 1997

Currently owns and operates 11 nationally recognized brand restaurants: 8 IHOP’s, 2 Carl’s jr . (including Hobbs), and Tilted Kilts in New Mexico, Texas, and Ohio

lease highlights

7 .5% rental increases every 5 years in base term and option periods

Four 5-year options with rental increases every 5 years

Zero landlord responsibilities

core characteristics

[ REPRESENTATIVE PHOTO ] CARL’S jR | 3

N Grimes Street N dal Paso Street

N Grimes StreetNW County RoadW

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Sanger elementary

Mills elementary

Coronado elementary

Highland Jr. High School

Stone elementary

tURNeR PlaZa

BRoadMooR Mall

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CARL’S jR | 4

area retailers incluDe lowe’s

walmart, the home Depot, anD

manY others

Surrounding Area Retail

CARL’S jR | 5

[ REPRESENTATIVE PHOTO ][ REPRESENTATIVE 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. Buyer must verify the information and bears all risk for any inaccuracies.

PRICE $2,308,333 Price Per Square Foot: $770 .21

Capitalization Rate: 6 .00%

Total Rentable Area (SF): 2,997

Lot Size (AC): 0 .85

STABILIZED INCOME Per Square FootScheduled Rent $46 .21 $138,500

Effective Gross Income $46 .21 $138,500

LESS Per Square FootTaxes Tenant Pays Direct $0 .00

Insurance Tenant Pays Direct $0 .00

Total Operating Expenses NNN $0 .00

EQUALS NET OPERATING INCOME $138,500

income & expense

CARL’S jR | 6

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. Buyer must verify the information and bears all risk for any inaccuracies.

RENTALINCREASES

rent roll

TENANT INFO LEASE TERMS RENT SUMMARY

Tenant Name Sq . Ft . Term Current Rent

MonthlyRent

YearlyRent

MonthlyRent/FT

YearlyRent/FT

Carl’s jr . 2,997 1 5 $138,500 $11,541 .67 $138,500 $3 .85 $46 .21

6 10 $12,407 .29 $148,888 $4 .14 $49 .68

11 15 $13,337 .83 $160,054 $4 .45 $53 .40

16 20 $14,338 .33 $172,060 $4 .78 $57 .41

Option 1 21 25 $15,413 .71 $184,965 $5 .14 $61 .72

Option 2 26 30 $16,569 .74 $198,837 $5 .53 $66 .35

Option 3 31 35 $17,812 .47 $213,750 $5 .94 $71 .32

Option 4 36 40 $19,148 .40 $229,781 $6 .39 $76 .67

Totals: 2,997 $138,500 $11,542 $138,500 $3.85 $46.21

[ Surrounding area retail ]CARL’S jR | 7

SIte PlaN Key

PARCEL OuTLINE:

LAND AREA: 0 .85 ACRES

BuILDING AREA: 2,997 SF

INGRESS/EGRESS:

This site plan is a rendering that has been created based on sources we believe to be reliable, however we make no representations or warranties, expressed or implied, as to the accuracy of the rendering. Buyer must verify the information and bears all risk for any inaccuracies.

Joe

Harv

ey B

oule

vard

site plan

CARL’S jR | 8

CaRl’S JR.Carl’s jr . is an American fast-food restaurant chain known for quality, cleanliness, and pioneering new concepts such as partial table service and self-serve beverage bars . It is characterized by its popular logo, the bright yellow five-pointed Happy Star, and has a history of developing popular advertising slogans such as “If it doesn’t get all over the place, it doesn’t belong in your face” . Signature menu items include the 100% Angus beef Six Dollar Burger™, charbroiled chicken sandwiches, entrée salads and low carbohydrate options . When combined with its sibling restaurant chain, Hardee’s, Carl’s jr . is the fifth largest fast food chain in size .

Carl’s jr . is currently owned and operated by CKE Restaurants, Inc ., one of the world’s largest operators and franchisors of quick service restaurants . With its headquarters in Carpinteria, California, CKE Restaurants Inc . currently has franchised, licensed, or company operated restaurants in 42 u .S . states and 25 foreign countries . Their brands include the Carl’s jr, Hardee’s, Green Burrito, and Red Burrito restaurants chains .

aBoUt tHe GUaRaNtoRTeo Regalado, who will be operating the store, has been a franchisee since 1997 and has owned/operated 6 IHOP restaurants in Texas and Louisiana . After selling off these stores, IHOP sent him to open more stores in New Mexico in which he has done huge sales volumes . He currently owns and operates 11 nationally recognized brand restaurants: 8 IHOP’s, 2 Carl’s jr .’s (including Hobbs), and Tilted Kilts in New Mexico, Texas, and Ohio .

www.carlsjr.com

[ REPRESENTATIVE PHOTOs ]

2014 ReVeNUe $1.5 BIllIon

NUMBeR oF loCatIoNS 1,300+

tenant overview

CARL’S jR | 9

HoBBS, NM oVeRVIeW Hobbs is located in Lea County, New Mexico both west and north of the Texas state line and is the principal city of the Hobbs, New Mexico Micropolitan Statistical Area . The population of Hobbs was 34,122 at the 2010 Census and the population in Lea County was 64,727 .

Hobbs holds the headquarters of the Soring Society of America . It is also home to Zia Park racetrack, which hosts thoroughbred and quarter horse racing and the Black Gold Casino .

population

2015 householD incomes

HOBBS

1-Mile 3-Mile 5-Mile

2010 6,057 28,070 41,2062015 6,496 30,254 44,1662020 7,008 33,013 48,054

1-Mile 3-Mile 5-Mile

Average $91,695 $74,431 $68,214

location & demographics

OKLAHOMA CITY

ALBuquERquE

DALLAS

4 HR 53 MIN314 MILES

3,365 Da

ilY

top emploYers in lea countY

Haliburton Hobbs Municipal Schools Lea Regional Medical Center Patterson-uTI Drilling Co .

CARL’S jR | 10

A unique HUMANRESULTS-DRIVEN client experience

tHe CaPItal PaCIFIC exPeRIeNCe - oUR daIly CoMMItMeNt to oUR ClIeNtS

[ www.CapitalPacific.com ]

JoHN aNdReINIjandreini@capitalpacific .com | (415) 274-2715 CA BRE# 01440360

[ Copyright © 2016 Capital Pacific ]

Capital Pacific collaborates . Click here to meet the rest of our San Francisco team .

daVe lUCaS

ZaNdy SMItH

JaCK NaVaRRa

Joe CaCCaMo

GReGG Steele

KaRla ZeNS

daVe lUCaSdlucas@capitalpacific .com | (415) 274-7390CA BRE# 01389761

RICK SaNNeRrsanner@capitalpacific .com | (415) 274-2709 CA BRE# 01792433

BoB SaNNeRbsanner@capitalpacific .com | (415) 274-2717 CA BRE# 00869657

CHRIS KoStaNeCKI ZeB RIPPle

Listed in Conjunction with NM Licensed Broker:Sean McMullan, McMullan & Company Real Estate | sean@mcmullanrealestate .com | (505) 259-6223

[ REPRESENTATIVE PHOTO ]

CHRIS PeteRS