Investment Opportunity

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1 SELLER FINANCING AVAILABLE Former Denny s Classic Diner Denny s Inc. Corporate Absolute Triple Net Lease 6941 Williams Rd., Niagara Falls, NY SELLER FINANCING AVAILABLE Property Summary: This former Denny s classic diner contains 4,455 sf on 1.72 acres of land. It is located next to the 800,000 sf Summit Mall which is anchored by Sears, Save-A-Lot and Bon Ton and has recently undergone a $4 million renovation. Area retailers include Toys R Us, Regis Cinema and Bon Worth. A 600 acre theme Park, Magical Lands Of Oz, is in the planning stages of development near the property and should be completed within 4 years. Located less than 2 miles north of the property is Niagara Falls International Airport. Part of the airport is used by the military as the Niagara Falls Air Reserve Station. It is home to more than 2,000 reserve, guard and civilian employees. The property is located approximately 6 ½ miles from Niagara Falls State Park. The park is the oldest state park in the United States of America and is over 400 acres. It was established in 1885 as the Niagara Reservation. It draws millions of visitors each year who want an opportunity to view the spectacular falls from one of the many outlooks. Through the years, countless people have enjoyed the sparkling scenery of the falls, making the Niagara Falls vacation spot a favorite for the whole family. The American side of the falls features a variety of adventures to help you make the most of your trip. Price and Cap: We offer this property at $1,000,000 which is a 14% cap rate on NOI of $140,000. Seller financing is available. Note: Buyer will receive approximately $840,000 in Denny s corporate guaranteed rent over the remaining 6 years of term recovering 84% of the purchase price and reducing buyer s remaining equity to $160,000. Market rent appears to be $11.58 psf which would give an investor a future return of over 32%. Property History: 1995: Perkin s Restaurant (franchisee: Brambury Associates) 1999: Brambury Associates assigns lease to Denny s, Inc. (Denny s Rent: $140,000) : Denny s Inc. Subleased to Yianis Family Restaurant Inc. (Yianis Rent: $51,600 / rent escalates $1,200 / yr) Nov. 2008: Denny s is dark and paying. Tenant: Denny's Inc. (NYSE: DENN): Denny's Corporation, through its subsidiaries, engages in the ownership and operation of family-style restaurants primarily in the United States. The company owns and operates its restaurants under the Denny's brand name. The company's restaurants offer traditional American-style food. As of December 27, 2006, it operated 1,545 restaurants, including 521 company-owned and 1,024 franchised/licensed restaurants. As of December 26, 2007 annual sales were $939 million with net income of $34.7 million and total assets of $381 million. Denny's Corporation was founded in 1980 and is headquartered in Spartanburg, South Carolina. Denny s Lease Summary: Rent: $140,000 ($31.43 psf) Escalations: None Expiration Date: March 10 th, 2015 Options: 4 (5) year options at fair market value. Lease Type: This is an absolute triple net lease. Landlord has absolutely no maintenance, repair or replacement responsibility for the building or land, such responsibility being solely that of the tenant. Tenant insures the property and pays taxes directly.

2 Images of the Subject Property

3 Site Plan

4 Office Complex Summit Mall anchored by: Sears, Bon Ton and Save-A-Lot (recently underwent a $4 million renovation) Subject Property

5 Office Complex Subject Property Summit Mall anchored by: Sears, Bon Ton and Save-A-Lot (recently underwent a $4 million renovation) 600 Acre Magical Lands Of Oz Theme Park (Recently approved.)

6 Military Airport (beginning to allow commercial flights) Summit Mall anchored by: Sears, Bon Ton and Save-A-Lot (recently underwent a $4 million renovation) Subject Property 600 Acre Magical Lands Of Oz Theme Park (Recently approved.)

7 Military Airport (beginning to allow commercial flights) Niagara Falls Subject Property 600 Acre Magical Lands Of Oz Theme Park (Recently approved.)

8 The following proposed park has now been officially approved and signed WHEATFIELD: Oz theme park still a reality Officials anticipate big news soon By Dave Hill/hilld@gnnewspaper.com November 9, Niagara Gazette The Magical Lands of Oz theme park in the Town of Wheatfield is still very much a reality, according to officials involved with its development. There s no reason to believe that it isn t, said Wheatfield Town Attorney Robert O Toole. A lot of effort and a lot of work have gone into it and continues to go into it. Wheatfield Supervisor Tim Demler said Thursday that representatives from Oz Central LLC, the Kentucky-based company that proposed the idea, requested a meeting with town officials for Wednesday. I think there s going to be a lot of good news coming next week, he said. The 800-acre project with a price tag of around $800 million was first pitched for Wheatfield a few years ago because of three key attractions: its proximity to Niagara Falls, cheap land and what Demler says is a business-friendly government in Wheatfield. Oz Central President Richard Burch initially proposed building the Magical Lands of Oz theme park in Houston but nixed that idea in favor of Niagara County. Demler said that s because the company would have had to create a tourism market there, much like the Walt Disney World Resort in Florida. Here, they can tap into one on the American side and the Canadian side, he said. The timeframe for Oz has depended largely on the environmental review process. O Toole said that s in the hands of the government agencies involved in the impact studies. Demler said a lot of bureaucratic red tape also contributed to the delay. However, he expressed optimism that Wednesday s meeting will yield positive results for the project to move forward. Any major update on the theme park would be a long time coming. The last public meeting Niagara County 8th District Legislator William L. Ross said he went to was over a year ago now. But, he said, Burch and his staff are here, they re working on it. He said that the county is also still on board with the project. We as a county are open for development, he said. The door is wide open, in fact. The idea behind the Magical Lands of Oz is based on the books of L. Frank Baum. A 780,000-square-foot building will be used for year-round activities. In addition, plans call for a themed flagship hotel, four additional hotels and retail, dining and entertainment facilities. Developers plan to use the existing lakes on the site as visual backgrounds while providing a buffer between the park and nearby homes. Oz would require an extension of the LaSalle Expressway to accommodate the main entrance into the theme park. Burch estimated the theme park could draw around four million visitors a year while providing the area an infusion of $50 million to $70 million in sales tax revenue. The theme park would be constructed in three phases over several years, providing thousands of construction jobs. Demler has said previously that Oz will bring 5,000 full- and part-time jobs. All told, the theme park itself will sit on 442 acres. Although the Magical Lands of Oz will occupy 800 total acres, significant space will be used as a buffer to protect nearby residents. Nobody in the town s going to hear it or see it unless they buy a ticket and go in, Demler said. While the process has taken several years, Demler said, All arrows and signals are pointing positive. It wasn t easy, but it is going to be done right.

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11 Traffic Counts Proposed Theme Park

12 25 Minute Drive Time

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