NET LEASE INVESTMENT OFFERING

Olive Garden (Corporate Sale Leaseback) 15701 City Beach Pkwy Panama City Beach, FL 32413 TABLE OF CONTENTS

TABLE OF CONTENTS

I. Executive Profile II. Location Overview III. Market & Tenant Overview Executive Summary Photographs Demographic Report Investment Highlights Aerial Market Overview Property Overview Site Plan Tenant Overview Map

NET LEASE INVESTMENT OFFERING DISCLAIMER STATEMENT

DISCLAIMER The information contained in the following Offering Memorandum is proprietary and strictly confidential. It STATEMENT: is intended to be reviewed only by the party receiving it from The Boulder Group and/or Lee & Associates and should not be made available to any other person or entity without the written consent of The Boulder Group and/or Lee & Associates.

This Offering Memorandum 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. The Boulder Group and Lee & Associates has not made any investigation, and makes no warranty or representation.

The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group and Lee & Associates have not verified, and will not verify, any of the information contained herein, nor has The Boulder Group or Lee & Associates 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.

NET LEASE INVESTMENT OFFERING EXECUTIVE SUMMARY

EXECUTIVE The Boulder Group and Lee & Associates are pleased to exclusively market for sale a single tenant net leased Olive SUMMARY: Garden sale-leaseback opportunity located in Panama City Beach, . The property is positioned in a dominant retail corridor immediately across from the beach. The Olive Garden lease will have an initial primary term of five years remaining upon close of escrow. This absolute net lease will feature 1.5% annual rental escalations. Olive Garden is the leading in the Italian dining segment with more than 800 . , Inc. is publicly traded (NYSE: DRI) with a market capitalization in excess of $12 billion and is an investment grade rated company (Standard & Poor’s: BBB)*.

The Olive Garden property is strategically located immediately across from the Panama City Beach front where there are over 17 million visitors annually who spend $1.7 billion. The property is positioned along Panama City Beach Parkway (36,000 VPD) where it has excellent visibility and can be easily accessed. Retailers in the immediate area include Walmart Supercenter, Target, Dillard’s, Dick’s Sporting Goods, JCPenney, Ross Dress for Less and Nike. The Olive Garden is an outparcel to Pier Park, a Simon owned mall with 124 stores. Pier Park features dining, shopping, and entertainment at the heart of the beach district. Pier Park captures 92% of the visitors that vacation on Panama City Beach and is across from an amphitheater with a capacity for 7,500 people and a major amateur and youth sports complex. A brand new 180-foot-tall SkyWheel just opened at the pier, which offers incredible views of the Gulf of .

There will be five years remaining on the corporately guaranteed Olive Garden lease upon close of escrow. The lease will feature 1.5% annual rental escalations and require no landlord responsibilities. Additionally, there will be five 5-year renewal option periods. The 7,441 SF Olive Garden property features a low rent per square of $15.11.

*As of December 2018

NET LEASE INVESTMENT OFFERING INVESTMENT HIGHLIGHTS

INVESTMENT • Corporate lease HIGHLIGHTS: • 1.5% annual rental escalations

• Low rent PSF

• Absolute Triple Net - No landlord responsibilities

• Low rent-to-sales ratio

• Located immediately across from the Panama City Beach front where there are over 17 million visitors annually who spend $1.7 billion

• Positioned along Panama City Beach Parkway (36,000 VPD) where it has excellent visibility and can be easily accessed

• Retailers in the immediate area include Walmart Supercenter, Target, Dillard’s, Dick’s Sporting Goods, JCPenney, Ross Dress for Less and Nike

• Outparcel to Pier Park outparcel to Pier Park, a Simon owned mall with 124 stores

• Pier Park features dining, shopping, and entertainment at the heart of the beach district

• Pier Park captures 92% of the visitors that vacation on Panama City Beach

NET LEASE INVESTMENT OFFERING PROPERTY OVERVIEW

PROPERTY Price: $1,843,000 OVERVIEW: Cap Rate: 6.10% Net Operating Income: $112,423 Rental Escalations: 1.5% Annually Renewal Options: Five 5-Year Lease Commencement Date: Upon Close of Escrow Lease Term: 5 Years Tenant: GMRI, Inc. (Wholly owned subsidiary of Darden Restaurants, Inc.) Year Built: 2008 Lease Type: NNN Estimated Building Size: 7,441 SF Estimated Land Size: 80,453 SF

NET LEASE INVESTMENT OFFERING PHOTOGRAPHS

NET LEASE INVESTMENT OFFERING AERIAL

Panama City Beach (over 11 million tourists annually)

NET LEASE INVESTMENT OFFERING AERIAL

NET LEASE INVESTMENT OFFERING SITE PLAN

NET LEASE INVESTMENT OFFERING MAP

NET LEASE INVESTMENT OFFERING DEMOGRAPHIC REPORT

DEMOGRAPHIC Population 1-Mile 3-Mile 5-Mile REPORT: Total Population 3,051 9,421 17,624 Total Households 1,269 4,002 7,758

Income 1-Mile 3-Mile 5-Mile

Average Household Income $83,339 $77,507 $72,935

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2018 and 2023.

NET LEASE INVESTMENT OFFERING MARKET OVERVIEW

MARKET Panama City Beach, Florida OVERVIEW: Panama City Beach is a resort city in Bay County, Florida, , on the Gulf of Mexico coast. As of the 2010 census it had a population of 12,018. The city is often referred to under the umbrella term of “Panama City”. Panama City Beach’s slogan is “The World’s Most Beautiful Beaches” due to the unique, sugar-white sandy beaches of northwest Florida.

Panama City Beach has been a popular vacation destination, especially among people in the Southern United States. The city is also a very popular spring break destination, due to the popularity of the beach and its close proximity to most of the Southern United States, and relative proximity as a drive destination for the Midwest.

The City is home to almost 13,000 permanent residents with over 11 million tourists visiting the area annually. The City is considered the fastest growing of Bay County’s seven cities in both population and area. With a population of young families, seniors and early retirees, Panama City Beach is considered an ideal place for relocation and vacation.

NET LEASE INVESTMENT OFFERING TENANT OVERVIEW

TENANT Olive Garden OVERVIEW: Olive Garden is an American casual dining restaurant chain specializing in Italian-American cuisine. Olive Garden started as a unit of Inc. The first Olive Garden was opened on December 13, 1982, in Orlando, Florida. By 1989, there were 145 Olive Garden restaurants, making it the fastest-growing units in the General Mills restaurant division. The company eventually became the largest chain of Italian-themed full-service restaurants in the United States. General Mills spun off its restaurant holdings as Darden Restaurants in 1995. Olive Garden operated more than 800 restaurant locations globally.

Website: www.olivegarden.com Locations: 800+ Year Founded: 1982 Parent Company: Darden Restaurants Inc.

GMRI, Inc. GMRI, Inc., formerly known as General Mills Restaurants Inc., is a wholly-owned subsidiary of Darden Restaurants, Inc. The company was incorporated in 1968 and is based in Orlando, Florida. GMRI, Inc. is the largest wholly-owned subsidiary of Darden Restaurants, Inc.

NET LEASE INVESTMENT OFFERING TENANT OVERVIEW

TENANT Darden Restaurants, Inc. OVERVIEW: Darden Restaurants, Inc. is the premier full-service restaurant company featuring a portfolio of category-leading brands that include Olive Garden, LongHorn Steakhouse, , , Cheddar’s Scratch Kitchen, , Eddie V’s and . Each of its brands enjoys industry-leading average unit volumes that together generate approximately $8 billion in annual sales across more than 1,700 locations. Headquartered in Orlando, Florida, Darden employs more than 184,000 team members who serve more than 390 million meals annually. Darden has been named to the FORTUNE “100 Best Companies to Work For” list on an annual basis.

Darden Restaurants, Inc. is a publicly traded company on the New York Stock Exchange using the symbol “DRI”. The company is investment grade rated by all major rating agencies including Standard & Poor’s (BBB) and Moody’s (Baa2).

Website: www.darden.com Locations: 1,700+ Stock Ticker: NYSE: DRI Credit Rating: S&P: BBB Moody’s: Baa2 ® Headquarters: Orlando, FL

NET LEASELEASE INVESTMENT INVESTMENT OFFERING OFFERING Randy Blankstein President 847.562.0003 [email protected]

John Feeney Senior Vice President 847.562.9280 [email protected]

3520 Lake Avenue, Suite 203 Wilmette, IL 60091

www.bouldergroup.com

Daniel Barnes Principal 314.400.4004 [email protected]

1 McBride & Son Center Dr, Suite 140 St. Louis, MO 63005

www.lee-associates.com