Portfolio of Two Freestanding Corporate Single Tenant Tim Hortons

Forged Real Estate is pleased to exclusively offer the opportunity to acquire the fee simple interest in two, single tenant properties leased to Tim Hortons, (the “Property”) in Monroe County, located in upstate New York. The two Tim Hortons in Rochester and Henrietta are both part of the Rochester MSA that is home to over 1 million residents. Tim Hortons operates on a corporate, fee simple absolute net (NNN) lease with over 14 years of term remaining. The triple-net (NNN) lease structure allows for a hands-free, passive form of ownership. Additionally, the lease features annual increases of the greater of 1% or the change in CPI. Tim Hortons Inc., commonly referred to as Tim’s, Timmie’s or Hortons, is a Canadian multinational coffeehouse and restaurant chain based out of the Toronto area. In 2014, Tim Hortons was acquired with quick service giant, Burger King, creating Restaurant Brands International. Restaurant Brands International (RBI) is one of the world's largest quick service restaurant companies (QSR) with anticipated annual system-wide sales of more than $40 billion and 31,525 restaurants in more than 100 countries. As of the three months ending September 30, 2024, system-wide sales for Tim Hortons grew 2.8% over the same period in the previous year reaching $1.95 billion. In the same quarter, Restaurant Brands International’s system-wide sales increased 3.2% to $11.43 billion. Net restaurants for RBI grew 3.8% over the prior years Q3. Tim Hortons ended Q3 2024 with over 4,500 restaurants. The brand recently expanded into new markets including Texas and Georgia while also finalizing agreements with operators to open in other U.S. states such as Arizona, Tennessee, Missouri, Delaware, and New Jersey (QSR Magazine). A study by Placer.ai reported that between Q1 2022 and Q1 2023, weekday visits to coffee shops increased across all four major chains which included Tim Hortons, proving the coffee industry to be inflation proof. As the net lease investment industry remains highly competitive, investors have seen coffee chains as a safe bet for steady returns.