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OFFERING MEMORANDUM Texas T-Bone Steakhouse 1419 E 11th St Hutchinson, KS 67501 Exclusively Listed By

CALVIN SHORT ARON CLINE CHAD KURZ JOSH BISHOP BROKER OF RECORD SVP & Senior Director SVP & Senior Director SVP & National Director VP & Director Kyle Matthews [email protected] LIC # 01904371 (CA) LIC # 01911198 (CA) LIC # 688810 (TX) LIC #CO00002672 (KS) DIR: (949) 432-4506 MOB: (310) 567-3525 LIC # 01927216 (CA) investment highlights

BROKER OF RECORD Kyle Matthews • New 20-year absolute triple-net lease – zero landlord responsibilities LIC #CO00002672 (KS) • Free-standing, high-yield asset with good visibility and multiple points of ingress and egress

• Fixed rental increases throughout the initial lease term which act as a strong hedge against inflation – see annualized operating data for details

• Full-term personal guarantee from the principal operator which shows commitment to and confidence in the location and brand

• Successful operating history at this location under a previous brand name in Lone Star – see broker for details on revenue

• Opportunity to invest in a growing operator and brand with 5 locations in , Nebraska and Colorado

• Centralized location ideally positioned across from Hutchinson Mall which has anchor tenants TJ Maxx, Hobby Lobby, ULTA and Dunham’s Sports

• Good mix of surrounding national retailers such as Walmart, Target, Home Depot, Lowe’s, McDonald’s, ALDI, Kohl’s, Starbucks, and Panda Express

• The offering is also surrounded on three sides by Holiday Inn Express, Hampton Inn, Fairfield Inn 7 Suites, Days Inn, Comfort Suites and Econo Lodge

| 3 financial overview

FINANCIAL SUMMARY TENANT SUMMARY

Tenant Trade Name Texas T-Bone Steakhouse Type of Ownership Fee Simple List Price Cap Rate Term Remaining NOI Lease Guarantor Corporate $1,500,000 8.00% ±19 Years $120,000 Lease Type NNN ANNUALIZED OPERATING DATA Roof and Structure Tenant Responsibility

Monthly Rent Annual Rent % Increase Cap Rate Original Lease Term 20 Years Year 1-5 $10,000.00 $120,000.00 8% 8.00% Rent Commencement Date 1/22/2018 Year 6-10 $10,800.00 $129,600.00 10% 8.64% Lease Commencement Date 12/11/2017 Year 11-15 $11,664.00 $139,968.00 10% 9.33% Lease Expiration Date 12/31/2037 Year 16-20 $12,597.08 $151,165.00 10% 10.08% Term Remaining on Lease ±19 Years Option 1 $13,856.79 $166,281.50 10% 11.09% Increase 8% and 10% in Extension Periods Option 2 $15,242.47 $182,909.65 — 12.19% Options Two, 5-Year Options 4 | tenant overview

TEXAS T-BONE STEAKHOUSE LOCATIONS

| 5 surrounding tenants

Hutchinson Mall

Hutchinson High School

6 | area overview HUTCHINSON, KANSAS The largest city and county seat of Reno County, Kansas, Hutchinson is located on the Arkansas River. Although nicknamed “ City” for its abundant amount of salt mines and natural resources, most locals refer to the city as “Hutch.”

Each year, Hutchinson hosts the and the National Junior College Athletic Association Basketball Tournament. The city is also home to the Kansas and Space Center aerospace museum and , formerly known as Kansas Underground Salt Museum.

A city shaped by the arts and culture, the Hutchinson Art Center and the Sculpture Walk are popular activities for residents and visitors. Popular performing arts attractions include the Historic Fox Theatre, Family Community Theatre, and the Hutchinson Community College Fine Arts & Humanities.

Hutchinson is home to many manufacturers, such as Arconic, Kuhn Krause, Tyson Prepared Foods, Collins Bus and Haven Steel. 24% of Hutchinson residents are employed in manufacturing careers. is also still an active part of the Hutchinson economy, with companies like Salt, , and Hutchinson Salt Co. having a presence in the city. KANSAS STATE FAIR The Annual Kansas State Fair is held in Hutchinson; it begins the Friday following Labor Day each year, and lasts 10 days. It is the largest single event in the state, and attracts approximately 350,000 people each year from all 105 counties in the state. Demographics The Fair offers wonderful opportunities for commerce, bringing in over 1,000 commercial vendors. Each year over 30,000 entrants compete in various competitive POPULATION 1 - MILE 3 - MILE 5 - MILE exhibit departments. The State Fair is also the state’s largest classroom field trip 2018 Estimate 7,164 39,417 47,283 program, offering educational activities for students of all ages and academic HOUSEHOLDS 1 - MILE 3 - MILE 5 - MILE pursuits. 2018 Estimate 3,043 15,938 19,263 When the Fairgrounds are not being used to host the Fair, they are used throughout INCOME 1 - MILE 3 - MILE 5 - MILE the year for many events such as horse and livestock shows, trade shows, flea 2018 Est. Average markets, wedding receptions, family reunions, company picnics, and more. $47,694 $58,700 $61,496 Household Income

| 7 WICHITA, KANSAS Wichita is the largest city in the state of Kansas and the county seat of Sedgwick County. It is located in south-central Kansas on the Arkansas River and is the principal city of the Wichita Metropolitan Area. As of 2016, the Wichita MSA was home to approximately 644,672 people.

Home to many exciting attractions, Wichita has the seventh-largest Zoo in the . The Sedgwick County Zoo is also the state’s most-visited outdoor attraction. Other cultural attractions include the monthly Friday Night Art Crawl, the Wichita Grand Opera, and Music Theatre Wichita. A great deal of live entertainment is offered throughout the year at INTRUST Bank Arena, Hartman Arena, Orpheum Theatre, Crown Uptown Theatre, and many other locations.

The Keeper of the Plains is a 44-foot tall steel sculpture standing at the confluence of the Little and Arkansas Rivers in downtown Wichita. As sacred land for the Native American People, the All-American Indian Center is located in the land between the rivers, and each night at 9pm the “Ring of Fire” lights up the Keeper of the Plains statue.

8 | WICHITA ECONOMY top employers In the 1920s and ‘30s, businessmen and aeronautical engineers established aircraft manufacturing companies in Wichita, including Beechcraft, Cessna, and Stearman Aircraft. The city became a U.S. aircraft production hub and became known as “The Air Capital of the World.” Textron Aviation, Learjet, Airbus, and Spirit AeroSystems continue to operate design and manufacturing facilities in Wichita, and the city remains as a major center of the American aircraft industry. Wichita is also home to McConnell Air Force Base.

The Greater Wichita Partnership is dedicated to fostering current industries while encouraging business development in the area. The city offers incentive programs to encourage investment in the revitalization of older commercial areas. There are currently multiple Community Improvement District Projects in progress, as well as Project Downtown- a master plan for the Wichita downtown area over the next 20 years. The goal of this project is to make the corea area a nationally recognized destination.

A plurality of Wichita residents are employed in production, manufacturing, or management occupations. Future job growth in the area is projected to be 36.67% over the next 10 years.

| 9 CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offering Memorandum contains select information pertaining to the business and affairs of Texas T-Bone Steakhouse located at 1419 E 11th St. Hutchinson, KS 67501(“Property”). It has been prepared by Matthews Retail Advisors. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Retail Advisors. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1. The Offering Memorandum and its contents are confidential;

2. You will hold it and treat it in the strictest of confidence; and

3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Matthews Retail Advisors expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Retail Advisors or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. OFFERNG MEMORANDUM Texas T-Bone ™ Steakhouse 1419 E 11th St Hutchinson, KS 67501

Exclusively Listed By

CALVIN SHORT ARON CLINE CHAD KURZ JOSH BISHOP BROKER OF RECORD SVP & Senior Director SVP & Senior Director SVP & National Director VP & Director Kyle Matthews [email protected] LIC # 01904371 (CA) LIC # 01911198 (CA) LIC # 688810 (TX) LIC #CO00002672 (KS) DIR: (949) 432-4506 MOB: (310) 567-3525 LIC # 01927216 (CA)