GOLDEN CHICK BRAND NEW 20 - YEAR TRIPLE - NET (NNN) SALE LEASEBACK

OFFERING

3965 S Lake Forest Dr MEMORANDUM McKinney, TX 75070 Confidentiality and Disclaimer

Marcus & Millichap hereby advises all prospective locations is an important consideration, it is not a thorough due diligence investigation. Marcus & Millichap purchasers of Net Leased property as follows: guarantee of future success. Similarly, the lease rate for has not made any investigation, and makes no warranty or some properties, including newly-constructed facilities or representation, with respect to the income or expenses The information contained in this Marketing Brochure has newly-acquired locations, may be set based on a tenant’s for the subject property, the future projected financial been obtained from sources we believe to be reliable. projected sales with little or no record of actual performance of the property, the size and square footage However, Marcus & Millichap has not and will not verify performance, or comparable rents for the area. Returns of the property and improvements, the presence or any of this information, nor has Marcus & Millichap are not guaranteed; the tenant and any guarantors may absence of contaminating substances, PCB’s or asbestos, conducted any investigation regarding these matters. fail to pay the lease rent or property taxes, or may fail to the compliance with State and Federal regulations, the Marcus & Millichap makes no guarantee, warranty or comply with other material terms of the lease; cash flow physical condition of the improvements thereon, or the representation whatsoever about the accuracy or may be interrupted in part or in whole due to market, financial condition or business prospects of any tenant, or completeness of any information provided. economic, environmental or other conditions. Regardless any tenant’s plans or intentions to continue its occupancy of tenant history and lease guarantees, Buyer is of the subject property. The information contained in this As the Buyer of a net leased property, it is the Buyer’s responsible for conducting his/her own investigation of all Marketing Brochure has been obtained from sources we responsibility to independently confirm the accuracy and matters affecting the intrinsic value of the property and believe to be reliable; however, Marcus & Millichap has completeness of all material information before the value of any long-term lease, including the likelihood not verified, and will not verify, any of the information completing any purchase. This Marketing Brochure is not a of locating a replacement tenant if the current tenant contained herein, nor has Marcus & Millichap conducted substitute for your thorough due diligence investigation of should default or abandon the property, and the lease any investigation regarding these matters and makes no this investment opportunity. Marcus & Millichap expressly terms that Buyer may be able to negotiate with a warranty or representation whatsoever regarding the denies any obligation to conduct a due diligence potential replacement tenant considering the location of accuracy or completeness of the information provided. All examination of this Property for Buyer. the property, and Buyer’s legal ability to make alternate potential buyers must take appropriate measures to verify use of the property. all of the information set forth herein. Any projections, opinions, assumptions or estimates used By accepting this Marketing Brochure you agree to release in this Marketing Brochure are for example only and do Marcus & Millichap Real Estate Investment Services and NON-ENDORSEMENT NOTICE not represent the current or future performance of this hold it harmless from any kind of claim, cost, expense, or property. The value of a net leased property to you liability arising out of your investigation and/or purchase Marcus & Millichap Real Estate Investment Services, Inc. depends on factors that should be evaluated by you and of this net leased property. (“M&M”) is not affiliated with, sponsored by, or endorsed your tax, financial and legal advisors. by any commercial tenant or lessee identified in this CONFIDENTIALITY AND DISCLAIMER marketing package. The presence of any corporation’s Buyer and Buyer’s tax, financial, legal, and construction logo or name is not intended to indicate or imply advisors should conduct a careful, independent The information contained in the following Marketing affiliation with, or sponsorship or endorsement by, said investigation of any net leased property to determine to Brochure is proprietary and strictly confidential. It is corporation of M&M, its affiliates or subsidiaries, or any your satisfaction with the suitability of the property for intended to be reviewed only by the party receiving it agent, product, service, or commercial listing of M&M, your needs. from Marcus & Millichap and should not be made and is solely included for the purpose of providing tenant available to any other person or entity without the written lessee information about this listing to prospective Like all real estate investments, this investment carries consent of Marcus & Millichap. This Marketing Brochure customers. significant risks. Buyer and Buyer’s legal and financial has been prepared to provide summary, unverified advisors must request and carefully review all legal and information to prospective purchasers, and to establish ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. financial documents related to the property and tenant. only a preliminary level of interest in the subject property. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT While the tenant’s past performance at this or other The information contained herein is not a substitute for a FOR MORE DETAILS. Table of Contents Investment Highlights 4 Financial Analysis & Investment Summary 5 Concept Overview 6 Surrounding Area 7 Location Overview 8 Regional Map 9 Property Photos 10 Surrounding Area Photos 11 Demographics 12

Representative Photo Investment Highlights

LOCATION LEASE TENANT

REAL ESTATE L E A S E T E N A N T / FUNDAMENTALS STRUCTURE GUARANTOR

✓ No Personal Income Tax in Texas ✓ Brand New 20-Year Sale Leaseback ✓ Franchisor Guarantee ✓ New Development Directly Next ✓ Triple Net (NNN) Lease with Zero ✓ 185 Locations with Significant Plans Door as Well as In the Surrounding Landlord Responsibilities for Expansion Area ✓ ✓ Attractive Rental Increases | 1.50% Proven Track Record with Operational ✓ Surrounding Retailers: Walmart Annually History of Multiple High-Volume Supercenter, Kroger, Walgreens, Locations throughout the Country McDonald’s KFC, Wing Stop, Sonic, ✓ Four (4) Tenant Renewal Periods of ✓ Expansion into Key Markets , 7-Eleven and More Five (5) Years Each ✓ Highly Trafficked Location | 24,684 ✓ In 2017, Golden Chick Celebrated its th Vehicles Per Day on S. Lake Forest 50 Anniversary Drive ✓ Affluent Community | Average Household Income of $109,875 Within One Mile of Property ✓ Robust Demographics | Over 17,000 Individuals Within a One Mile Radius of Property 4 Financial Analysis & Investment Summary PURCHASE PRICE: $2,000,000 | CAP RATE: 5.75% | RENT: $115,000

PROPERTY DESCRIPTION RENT SCHEDULE Property Golden Chick Lease Year(s) Annual Rent Monthly Rent Rent Escalation Year 1 $115,000 $9,583 - Property Address 3965 S Lake Forest Dr Year 2 $116,725 $9,727 1.50% City, State ZIP McKinney, TX 75070 Year 3 $118,476 $9,873 1.50% Year 4 $120,253 $10,021 1.50% Building Size (SF) 2,155 Year 5 $122,057 $10,171 1.50% Lot Size (Acres) 0.70 Year 6 $123,888 $10,324 1.50% Type of Ownership Fee Simple Year 7 $125,746 $10,479 1.50% Year 8 $127,632 $10,636 1.50% Year 9 $129,547 $10,796 1.50% THE OFFERING Year 10 $131,490 $10,957 1.50% Year 11 $133,462 $11,122 1.50% Purchase Price $2,000,000 Year 12 $135,464 $11,289 1.50% CAP Rate 5.75% Year 13 $137,496 $11,458 1.50% Year 14 $139,559 $11,630 1.50% Annual Rent $115,000 Year 15 $141,652 $11,804 1.50% Year 16 $143,777 $11,981 1.50% LEASE SUMMARY Year 17 $145,933 $12,161 1.50% Year 18 $148,122 $12,344 1.50% Property Type Net-Leased Restaurant Year 19 $150,344 $12,529 1.50% Tenant / Guarantor Golden Operating Corp / Golden Franchising Corp Year 20 $152,599 $12,717 1.50% Lease Term 20 Years Investment Summary Lease Commencement Close of Escrow Marcus & Millichap is pleased to present the exclusive listing for a Golden Chick located at 3965 S Lake Forest Dr, McKinney, TX. The property consists Lease Expiration 20 Years from Close of Escrow of 2,155 square feet of building space and is situated on approximately 0.70 Lease Term Remaining 20 Years acres of land. Lease Type Triple Net (NNN) The tenant will enter into a brand new, 20-year triple-net (NNN) lease with Roof & Structure Tenant Responsible absolutely no landlord responsibilities upon the close of escrow. The lease Options to Renew Four (4), Five (5) Year Option Periods will call for 1.50% annual rental increases that will continue through the base term and into the four, five-year tenant renewal options. The lease will Rental Increases 1.50% Annually carry a corporate guaranty from Golden Franchising Corporation, the chain’s franchisor. 5 Concept Overview

About Golden Chick Golden Chick is a chain featuring chicken. The Golden Chick Story began in San Marcos in 1967 when the concept was created by a former employee of a national chicken chain who believed there had to be a better way to run a franchise system. The first restaurant was called Golden . Franchising started in 1972. A decade later, the franchise grew to a number of restaurants primarily in Central Texas, with a focus on cities like Austin and San Antonio. Eventually it expanded outside to the Dallas-Fort Worth Metroplex, and then crossed the state line into Oklahoma. Today, there are currently 185 stores operating across the country, with a solid track record of growth and sales increases. Since 1985, the chain’s flagship menu item has been its chicken strips, trademarked as Golden Tenders. In 1996, Golden Fried Chicken abbreviated into its present name Golden Chick. What Is It? Management characterizes Golden Chick as a concept targeting both quick- service and home-meal-replacement users through a variety of menu proteins and styles, including fried and roasted bone-in and boneless chicken, catfish, salads and sides. Its latest-generation restaurants typically take up about 2,200 square feet, seat 55 and generate approximately 70 percent of sales from takeout and drive-thru business. Growth Drivers Golden Chick’s growth is fueled by its menu diversity and ongoing development of guest-facing technologies and design elements that support more convenient takeout and delivery, customer self-order and loyalty-program participation. He said the chain’s concentric expansion strategy, which accelerates brand recognition and trial by developing new markets adjacent to established ones, has it working to enter Louisiana, Arkansas and Kansas City, MO. Price Point Single items $3.50 - $7.00 Meal packages $20.00 - $30.00 and up Average check runs $8.50 to $12.00 — depending on daypart and whether the guest is an individual or visiting with family. Current Locations 185 locations throughout the country. Headquarters The company is headquartered in Richardson, Texas, a suburb of Dallas. 6 7

S. Lake Forest Drive Eldorado PkwyEldorado Surrounding Area Surrounding Location Overview

This Golden Chick property is located at 3965 S. Lake Forest Drive in McKinney, Texas. Memphis is a city in and the county seat of Collin County and it is the second-largest city within Collin County, after Plano. ADTC: 29,050

SURROUNDING RETAIL & POINTS OF INTEREST The subject property is well-positioned on S. Lake Forest Drive and is surrounded by many major national and local tenants. National brands in the area include: Walmart Supercenter, Kroger, Walgreens, McDonald’s KFC, Wing Stop, Sonic, Pizza Hut, 7-Eleven, and many others. Within five miles of the subject property are many schools, such as, Lindsey Elementary School (~880 students), McGowen Elementary School (~650 students), Reuben Johnson Elementary School (~512 students), and Allen High School (~4,746 students). The subject property is located in an area that has national retailers, as well as very dense residential neighborhoods, which surround it.

TRAFFIC COUNTS & DEMOGRAPHICS This area has very strong demographics, with approximately 17,220 people residing within a one-mile radius and 98,346 people within a three-mile radius of this property. ADTC: 24,684 This Colden Chick is located on S. Lake Forest Drive, which intersects directly with Eldorado Parkway. These two roads boast significant traffic counts of 24,684 and 29,050 vehicles per day, respectively.

MCKINNEY, TX McKinney is the county seat of Collin County and is located about 32 miles north of Dallas. The Census Bureau listed McKinney as the nation’s fastest-growing city from 2000 to 2003 and again in 2006, among cities with more than 50,000 people. In 2007, it was ranked the second-fastest growing among cities with 100,000 people and in 2008 as third-fastest. In 2010 it was ranked the 19th-most populous city in Texas and as of 2017, McKinney was known as the third-fastest growing city in the United States. McKinney has been voted #1 by Money Magazine as “Best Place to Live” in America. Factors considered included employment, schools, crime and safety, as well as overall quality of life aspects including a feeling of community pride. McKinney is the home of the Central Park Campus of Collin College, the Collin Higher Education Center campus of Collin College, Texas Woman’s University, The University of Texas at Dallas, and the University of North Texas. McKinney is home to beautiful tree-lined streets, diverse residential neighborhoods, outstanding educational opportunities, a robust business environment, a charming historic downtown, and a strong sense of community. 8 Regional Map

9 Property Photos

10 Surrounding Area Photos

Newly Developed Strip Center Directly Next Door 11 Demographics MAJOR EMPLOYERS Employer # of Employees Administrative Services 1,400 Encore Wire Corporation 1,302 Texas Roadhouse 1,118 McKinney Healthcare Association 900 Heritage High School 897 5 Miles Collin County Community College District 867 Target 823 City of Allen 660 The Home Depot 645 3 Miles Raytheon 639 APS 600 Lowes 600 # of Employees based on 5 mile radius 1 Mile DEMOGRAPHICS Population 1 Mile 3 Miles 5 Miles 2022 Projection 20,362 120,157 304,133 2017 Estimate 17,220 98,346 254,654 2010 Census 13,980 73,955 193,839 2000 Census 5,912 27,109 80,128 Income Average $109,875 $132,568 $126,653 Median $93,165 $104,984 $100,342 Per Capita $37,999 $46,351 $43,319 Households 2022 Projection 7,248 42,712 105,588 2017 Estimate 5,955 34,383 87,038 2010 Census 4,776 25,588 66,069 2000 Census 1,911 9,071 27,199 Employment 2017 Daytime Population 8,691 68,027 208,810 2017 Unemployment 3.24% 3.19% 3.10% 2017 Median Time Traveled 33 Mins 33 Mins 32 Mins 12

EXCLUSIVE NET LEASE OFFERING

TX BROKER OF RECORD: Timothy Speck Marcus & Millichap 5001 Spring Valley Road, Suite 100W Dallas, TX 75244 Tel: 972-755-5200 Fax: 972-755-5210 License: 432723