OFFERING MEMORANDUM

7737 E. Brainerd Road | Chattanooga, TN 37421

REPRESENTATIVE PHOTO

Ty Miller Tanner Olson Sean von Schwarz [email protected] [email protected] [email protected] 801.930.6792 801.930.6752 313.962.2800 CONTENTS

The Off ering 03 Tenant Summary 06 Investment Summary 07 Property Summary 08 Location Overview 09 THE OFFERING | 3

THE OFFERING EINSTEIN BROS BAGELS Legend Investment Group is pleased to present investors with the rare opportunity to acquire a Einstein Bros. Bagels in Chattanooga, Tennessee. This asset is an ideal opportunity with a 10-year NNN lease corporately backed by Einstein Bros. Bagels and features a 3% rent increase every year.

The building was recently built in 2013 and has exceellent visibility along Brainerd Road.

This Einstein Bagels is located off Interstate 75, two miles from the Hamilton Place Mall, one of the busiest retail areas in Chattanooga.

Brainard Rd 72,000 vpd 72,000 Graysville Rd

Goodwin Rd

70 Gunbarrel Rd Gunbarrel

29,000 vpd 23,000 vpd 23,000

7737 E. BRAINERD RD

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S

d d d E LEL I

MIM

22 MILES Gunbarrel Rd Gunbarrel ERLANGER EAST HOSPITAL EAST 70

Brainard Rd

153

47,000 vpd 47,000 90,000 vpd 90,000 HIGHLIGHTS | 5 HIGHLIGHTS

IDEAL LOCATION SINGLE TENANT EINSTEIN BROS. BAGELS & CARIBOU • Located off Interstate 75, two miles from the Hamilton Place Mall, one of the • Brand New 10-Year, Triple Net (NNN) Lease busiest retail areas in Chattanooga. • The building was built in 2013 • Surrounding retailers include Walmart Neighborhood Market, Target, Home • Two, Five Year Option Periods Depot, Food City, Advance Auto Parts, Dollar General, Sherwin Williams, • Three percent rental increases every year Sprint, Pizza Hut, CVS and many more. • Less than fi ve miles from Chattanooga Metropolitan Airport and Tennessee- Georgia State Border. STRONG NATIONAL TENANT • Ten Miles from the University of Tennessee at Chattanooga and Chattanooga • Einstein Bros. Bagels is a bagel and coff ee chain in the United States with State Community College. approximately 800 restaurants with the Einstein Bros. name • Chattanooga is the fourth largest city in the state of Tennessee. • The company currently employs over 6,500 employees • named Chattanooga one of the “Top 45 Places to Go” in the world. • Caribou Coff ee operates the second largest non franchised coff ee chain in the United States • Operator has recently invested $35,000 to co brand this location to include Caribou’s full drink menu showing a commitment on both Franchise and Corporate levels

REPRESENTATIVE PHOTO TENANT SUMMARY | 6 TENANT SUMMARY

Einstein Bros. Bagels is an American bagel and coff ee chain in the United States. Einstein Bros. Einstein’s was founded by the chain restaurant corporation Boston Chicken (now Boston Market) in 1995, as a way to market breakfast foods. The chain is now owned by Einstein Noah Restaurant Group Inc., which in 2014 was taken private by JAB Holdings Co. Einstein Noah Restaurant Group is the parent company of Einstein Bros. Bagels, Noah’s New York Bagels and Manhattan Bagel brands, which operate, franchise and license more than 850 restaurants in 42 states, along with a dough production facility. JAB (S&P: BBB+) is a privately held business group headquartered in Luxembourg focused on consumer goods investments.

Founded in 1992, Caribou Coff ee operates the second-largest non-franchised coff ee chain in the US (based on the number of locations) behind Starbucks with more than 410 stores in about 20 states, mostly in Minnesota. The outlets, designed to resemble mountain lodges, off er fresh-brewed coff ee along with specialty coff ee drinks and baked goods. The stores also sell whole bean coff ee and brewing supplies. Caribou Coff ee has about 170 franchised outlets, including many in international markets. Beyond its coff ee shops, the company sells roasted coff ee and related supplies to grocery stores and foodservice suppliers. Caribou Coff ee is a proud recipient of the Rainforest Alliance Corporate Green Globe Award and is committed to operating practices that promote sustainability and environmental protection. Caribou Coff ee, which had been a public company since 2005, was taken private in early 2013 by JAB Beech, a member of the Joh. A. Benckiser group of companies, which also owns rival Peet’s Coff ee & Tea and former Sara Lee coff ee division D.E. Master Blenders. The Germany-based Joh. A Benckiser paid $340 million for Caribou Coff ee.

PROPERTY | & EINSTEIN BROS. BAGELS

LOCATIONS | 850+

PARENT COMPANY | JAB HOLDINGS CO.

CREDIT RATING | S&P | BBB+ (JAB HOLDINGS CO.) INVESTMENT SUMMARY | 7 INVESTMENT SUMMARY

PRICE $1,521,000 RENTABLE SF 2,100 SF CAP 6.50% YEARS REM. 10 Years

LEASE TYPE NNN

ANNUAL RENT $98,880 REPRESENTATIVE PHOTO

PROPERTY SUMMARY

ADDRESS 7737 East Brainerd Road YEAR BUILT 2013 Chattanooga, TN 37421

BLDG. AREA 2,100 SF LEASE TYPE NNN

LOT SIZE 0.92 AC OPTIONS 2, 5 year options

PROPERTY SUMMARY | 8 40,000 vpd

Brainerd Rd DEMOGRAPHICS 1 MILE 3 MILE 5 MILE

POPULATION 6,303 44,074 99,673

AVG. HOUSEHOLD INCOME $83,850 $80,710 $72,439

HOUSEHOLDS 3,055 19,378 41,728

BUSINESSES 634 3,207 6,125

DAYTIME POPULATION 6,958 43,341 99,965

7737 E. BRAINERD RD CHATTANOOGA, TN - HAMILTON COUNTY

Chattanooga is the county seat of Hamilton County, which has a current population of more than 350,000. It is the fourth largest city in the state of Tennessee. Chattanooga is one of the south’s top travel destinations. Tucked between the mountains of southeast Tennessee, along the beautiful Tennessee River, Chattanooga is one of America’s most breathtaking cities. There’s also a wide variety of outdoor activities, amazing restaurants, live events, art and worldclass attractions, making Chattanooga a great place to live or visit.

Chattanooga’s economy includes a diversifi ed and growing mix of manufacturing and service industries. Tourism and Hospitality has been a growing part of Chattanooga’s economy, with 2014 being the First year for Hamilton County to surpass $1 billion in revenue.

Chattanooga has been recognized several times over the decades, including the prestigious All-America City Award and being recognized as a Tree City USA community. The New York Times named Chattanooga one of the “Top 45 Places to go” in the world. Only four United States destinations were named, and the “Scenic City” was the only place outside of California.

Chattanooga also has a large, growing sports scene for a city of its size, including college sports, minor league baseball, semiprofessional teams, professional cycling exemplifi ed by the Volkswagen USA Cycling Professional Road & Time Trial National Championships and the Ironman Triathlon.

NEIGHBORHOOD | 11 QUINCY CORNERS | 12

TENNESSEE

Tennessee is as well known for the Great Smoky Mountains, site of the most visited national park in the United States, as it is for a slew of music legends, including Elvis Presley, Jerry Lee Lewis, Muddy Waters, Johnny Cash and Dolly Parton, who rose from the blues music hub of Memphis or country crooner center Nashville.

At $48,547, Tennessee’s 2016 median household income was lower than the national average, while the poverty rate of 15.8 percent was about 10 percent higher than the U.S. rate.

Tennessee is home to some Fortune 500 companies, including package shipping giant FedEx and health care and medical facility fi rm HCA Holdings. Non-agricultural growth has boosted Tennessee’s economy in recent years, with the manufacturing and mining, logging and construction industries experiencing strong growth.

QUINCY CORNERS | 12 Affi liated Business Disclosure and Confi dentiality Agreement

This Off ering Memorandum has been prepared by Legend Investment Group (LIG) for use by a limited number of parties and has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verifi ed it, and make no guarantee, warranty or representation about it. It is your responsibility to confi rm, independently, its accuracy and completeness. All projections have been developed by LIG, Owner and designated sources, are based upon assumptions relating to the general economy, competition, and other factors beyond the control of Owner, and therefore are subject to variation. No representation is made by LIG or Owner as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied on as a promise or representation as to the future performance of the property. Although the information contained herein is believed to be correct, Owner and its employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, LIG, Owner and their employees disclaim any and all liability for representations and warranties, expressed and implied, contained in, or for omissions from, the Off ering Memorandum or any other written or oral communication transmitted or made available to the recipient. The Off ering Memorandum does not constitute a representation that there has been no change in the business or aff airs of the property or Owner since the date of preparation of the Off ering Memorandum. Analysis and verifi cation of the information contained in the Off ering Memorandum is solely the responsibility of the prospective purchaser.

Additional information and an opportunity to inspect the property will be made available upon written request to interested and qualifi ed prospective investors. Owner and LIG each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or off ers regarding the property and/or terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligations to any entity reviewing this Off ering Memorandum or making an off er to purchase the property unless and until such off er is approved by Owner, a written agreement for the purchase of the property has been fully executed, delivered and approved by Owner and its legal counsel, and any obligations set by Owner thereunder have been satisfi ed or waived.

This Off ering Memorandum and the contents, except such information, which is a matter of public record or is provided in sources available to the public, are of a confi dential nature. By accepting this Off ering Memorandum, you agree that you will hold and treat it in the strictest confi dence, that you will not photocopy or duplicate it, that you will not disclose this Off ering Memorandum or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confi dentiality) without the prior written authorization of Owner or LIG and that you will use the information in this Off ering Memorandum for the sole purpose of evaluating your interest in the property and you will not use the Off ering Memorandum or any of the contents in any fashion or manner detrimental to the interest of Owner or LIG. If you have no interest in the property, please return the Off ering Memorandum forthwith. Ty Miller [email protected] 801.930.6792 Tanner Olson [email protected] 801.930.6752

Sean von Schwarz [email protected] 313.962.2800

LEGEND PARTNERS 1686 S. Major St., Suite 200 • Salt Lake City, UT 80222 REPRESENTATIVE PHOTO 801.930.6750 • www.legendLLP.com