OFFERING MEMORANDUM Carl’s Jr (Dark) 7249 BANDERA ROAD , TX 78238

+7.5 Years of Guaranteed Term Remaining

$1,222,150 in Guaranteed Income

™ Combined ±74,000 Vehicles Per Day

CONTENTS EXCLUSIVELY LISTED BY

MITCHELL GLASSON KYLE MATTHEWS EXECUTIVE OVERVIEW Senior Associate Broker of Record 03 direct (949) 432-4502 License No. EC 9005919 (TX) [email protected] FINANCIAL OVERVIEW 04 License No. 02016029 (CA) 08 AREA OVERVIEW SECTION 1 Executive Overview

Matthews Real Estate Investment Services is pleased to present the fee simple sale of Kohls & Guitar Center, located in the city of Fort Collins, Colorado. Located on Harmony Road, a major East-West commercial thoroughfare for the trade area with over 48,000 cars per day at Harmony Road and Boardwalk Drive. Kohl’s has operated out of this location for over 13 years and Guitar Center recently renewed for 10 years demonstrating the strength of this location and commitment to this store.

INVESTMENT HIGHLIGHTS • Absolute NNN Lease - fee simple ownership

• Individual Store Performance - broke Carl’s Jr. domestic and international opening week sales record

• Lease Guarantor - successful ±135 operator was assigned to the Lease in 2016 after the original Lessor defaulted

• (Pre-Covid & Post Lease Assignment) - lease restructure and real estate buybacks proposals were presented but declined by Lessor - please see Broker for details

• ±7.8 Years of Guaranteed Term Remaining - $1,222,150 in Guaranteed Income

| 3 SECTION 1 Executive Overview

Matthews Real Estate Investment Services is pleased to present the fee simple sale of Kohls & Guitar Center, located in the city of Fort Collins, Colorado. Located on Harmony Road, a major East-West commercial thoroughfare for the trade area with over 48,000 cars per day at Harmony Road and Boardwalk Drive. Kohl’s has operated out of this location for over 13 years and Guitar Center recently renewed for 10 years demonstrating the strength of this location and commitment to this store.

INTRINSIC VALUE OF REAL ESTATE • Ideal Location - ±1.12 acre parcel located at the signalized intersection of Bandera & Eckhert Road (±74,000 Vehicles Per Day)

• Dominant Retail Corridor - Caliber Collision, Hobby Lobby, Raising Cane’s, Sherwin-Williams, Starbucks, and WalMart Supercenter within 1.2 miles of the subject property on Bandera Road

• Proven Market & Rapid Growth - 13% average population growth within 1, 3, & 5-mile radius since 2010

• John Marshall High School - walking distance with approximate enrollment of ±3,000 students (nearest drive-through property)

• Trails of Leon Creek Apartments - new construction, located across the street, by PEDCOR Companies (known for prominent development in affluent market of Carmel, IN - #1 Ranking in Best Places to Live US)

4 | SECTION 2 Financial Overview

TENANT SUMMARY EXECUTIVE SUMMARY

Tenant Dark List Price $2,520,000 Ownership Fee Simple Cap Rate 6.00% Lease Type NNN (reverted from NNN Ground Lease) Gross Leasable Area ± 2,911 SF Roof and Structure Tenant Responsible Lease Guarantor Franchisee Lot Size ± 1.17 Acres (±50,965 SF) Original Tenant Frontier Star CJ, LLC Year Built / Renovated 2009 Successor Tenant & Guarantor Starcorp CJ, LLC Lease Amendment Date May 11, 2016 ANNUALIZED OPERATING DATA Original Lease Term Twenty (20) Years Monthly Annual Term Rent/SF Cap Rate Rent Rent Lease Commencement Date March 27, 2008 Order Date - 3/27/2018 $12,000 $144,000 $49 - Lease Expiration Date March 27, 2028 Lease Term Remaining ±7.9 Years 3/28/2018 - 3/27/2023 $12,600 $151,200 $52 5.00% Rental Increases 5% Every 5 Years 3/28/2023 - 3/27/2028 $13,230 $158,760 $55 5.00% Options Two, 5-Year

| 5 BANDERA RD ± 50,000 VPD

SUBJECT PROPERTY

ECKHERT RD ± 24,000 VPD

6 | NEW MULTIFAMILY DEVELOPMENT

JOHN MARSHAL HIGH SCHOOL

BANDERA RD ± 50,000 VPD

ECKHERT RD ± 24,000 VPD SUBJECT PROPERTY

| 7 SECTION 4 Area Overview

DEMOGRAPHICS SAN ANTONIO, TX POPULATION 1-MILE 3-MILE 5-MILE 2025 Projection 14,134 132,743 409,196 San Antonio officially the City of San Antonio, is the seventh most populous city in the United States and the second most populous city in both Texas and the 2020 Estimate 13,110 123,974 382,902 Southern United States. Straddling the regional divide between South and Central 2010 Census 11,343 110,547 340,868 Texas, San Antonio anchors the southwestern corner of an urban megaregion Growth % 2020-2025 7.81% 7.07% 6.87% colloquially known as the “Texas Triangle”. Growth % 2010-2020 15.58% 12.15% 12.33% San Antonio is the center of the San Antonio–New Braunfels metropolitan statistical HOUSEHOLDS 1-MILE 3-MILE 5-MILE area. Commonly called , the metro area has a population of 2,473,974 based on the 2017 U.S. census estimate, making it the 24th-largest 2025 Projection 5,789 50,825 154,502 metropolitan area in the United States and third-largest in Texas. Growth along the 2020 Estimate 5,359 47,260 143,839 Interstate 35 and Interstate 10 corridors to the north, west, and east make it likely 2010 Census 4,593 41,538 125,958 that the metropolitan area will continue to expand. Growth % 2020-2025 8.02% 7.54% 7.41% Growth % 2010-2020 16.68% 13.78% 14.20%

HOUSEHOLDS 1-MILE 3-MILE 5-MILE Average Household $54,551 $63,210 $64,263 Income 8 | ECONOMY The City of San Antonio maintains a strong financial position with a “AAA” general obligation bond rating from all three major rating agencies. The Milken Institute has ranked San Antonio No. 1 on its Best-Performing Cities list. As the seventh-largest city in the United States, San Antonio is experiencing solid economic growth in 21st-century industries such as bioscience and healthcare, aerospace, IT and cybersecurity, and green technologies. Biotech companies and healthcare systems in San Antonio contribute billions to the local economy. The Aerospace industry remains a dominant economic strength in San Antonio with the presence of several aviation and aerospace corporations, including the military. The military has had a significant relationship with San Antonio for more than 200 years and is home to several military commands. The city is also a cybersecurity hub; nationally recognized as a leader in the field of information security. San Antonio is positioning itself to be at the forefront of the New Energy Economy in the United States, committed to investing and creating employment opportunities in green industries. The economy has remained steady and prosperous by successfully attracting new businesses and helping existing companies grow. The city has focused on creating new employment opportunities in 21st-century industries, maintaining a great quality of life, and facilitating business growth at the local and international level.

3RD 6 LARGEST CITY FORTUNE 500 IN TEXAS COMPANIES

3 2.4 MAJOR MILLION PEOPLE SPORTS TEAMS

| 9 SAN ANTONIO CULTURE “Museum Reach” beginning in through downtown, San Antonio is a popular tourist destination. The Alamo Mission in San Antonio “Downtown Reach”, past the Blue Star’s “Eagleland” to the “Mission Reach” (“The Alamo”), located in Downtown, is Texas’ top tourist attraction. Because of ending near Loop 410 South past Mission Espada. Lined with numerous shops, the mission, San Antonio is often called “Alamo City”. bars, and restaurants, as well as the , this attraction is transformed into an impressive festival of lights during the Christmas and New The River Walk, which meanders through the Downtown area, is the city’s Year holiday period (except for the Mission Reach), and is suffused with the local second-most-visited attraction, giving it the additional nickname of “River City”. sounds of folklorico and flamenco music during the summer, particularly during Extended an additional 13 miles between 2009–2013, the landscaped walking celebrations such as the Fiesta Noche del Rio. and bike path line the from the

SAN ANTONIO ATTRACTIONS The city is home to three animal attractions. SeaWorld, 16 miles west of It is expected to open by summer 2018. The San Antonio Aquarium is the third Downtown in the city’s Westover Hills district, is the number 3 attraction and and final attraction. San Antonio is also home to several commercial amusement one of the largest marine life parks in the world. The very popular and historic parks, including , Splashtown and Morgan’s Wonderland, a is in the city’s Brackenridge Park. A third animal attraction is in theme park for children with special needs. Kiddie Park, featuring old-fashioned development by British company Merlin Entertainments to accompany SeaWorld amusement rides for children, was established in 1925 and is the oldest children’s as a second aquarium attraction and indoor counterpart. The new attraction will amusement park in the U.S. be inside the in and will be one of Merlin’s Sea Life Aquariums.

10 | CONFIDENTIALITY AGREEMENT & DISCLAIMER This Offering Memorandum contains select information pertaining to the business and affairs ofCarl’s Jr located at 7249 Bandera Road, San Antonio, TX 78238 (“Property”). It has been prepared by Matthews Real Estate Investment Services. 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 Real Estate Investment Services. 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 Real Estate Investment Services 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 7249 BANDERA ROAD 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. SAN ANTONIO, TX 78238

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 Real Estate Investment Services 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.

| 11 Carl’s Jr (Dark)

EXCLUSIVELY LISTED BY

MITCHELL GLASSON KYLE MATTHEWS Senior Associate Broker of Record direct (949) 432-4502 License No. EC 9005919 (TX) [email protected] License No. 02016029 (CA)

™

12 | 11-2-2015 Information About Brokerage Services Texas law requires all real estate license holders to give the following informaƟon about brokerage services to prospecƟve buyers, tenants, sellers and landlords.

TYPES OF REAL ESTATE LICENSE HOLDERS: . • A BROKER is responsible for all brokerage acƟviƟes, including acts performed by sales agents sponsored by the broker. • A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.

A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): • Put the interests of the client above all others, including the broker’s own interests; • Inform the client of any material informaƟon about the property or transacƟon received by the broker; • Answer the client’s quesƟons and present any offer to or counter-offer from the client; and • Treat all parƟes to a real estate transacƟon honestly and fairly.

A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:

AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a wriƩen lisƟng to sell or property management agreement. An owner's agent must perform the broker’s minimum duƟes above and must inform the owner of any material informaƟon about the property or transacƟon known by the agent, including informaƟon disclosed to the agent or subagent by the buyer or buyer’s agent.

AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a wriƩen representaƟon agreement. A buyer's agent must perform the broker’s minimum duƟes above and must inform the buyer of any material informaƟon about the property or transacƟon known by the agent, including informaƟon disclosed to the agent by the seller or seller’s agent.

AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parƟes the broker must first obtain the wriƩen agreement of each party to the transacƟon. The wriƩen agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligaƟons as an intermediary. A broker who acts as an intermediary: • Must treat all parƟes to the transacƟon imparƟally and fairly; • May, with the parƟes' wriƩen consent, appoint a different license holder associated with the broker to each party (owner and buyer) to communicate with, provide opinions and advice to, and carry out the instrucƟons of each party to the transacƟon. • Must not, unless specifically authorized in wriƟng to do so by the party, disclose: ᴑ that the owner will accept a price less than the wriƩen asking price; ᴑ that the buyer/tenant will pay a price greater than the price submiƩed in a wriƩen offer; and ᴑ any confidenƟal informaƟon or any other informaƟon that a party specifically instructs the broker in wriƟng not to disclose, unless required to do so by law.

AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transacƟon without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.

TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: • The broker’s duƟes and responsibiliƟes to you, and your obligaƟons under the representaƟon agreement. • Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.

LICENSE HOLDER CONTACT INFORMATION: This noƟce is being provided for informaƟon purposes. It does not create an obligaƟon for you to use the broker’s services. Please acknowledge receipt of this noƟce below and retain a copy for your records.

Kyle Matthews/Matthews Retail Group Inc. 678067 [email protected] (310) 919-5757 Licensed Broker /Broker Firm Name or License No. Email Phone Primary Assumed Business Name Kyle Matthews 678067 [email protected] (310) 919-5757 Designated Broker of Firm License No. Email Phone

Licensed Supervisor of Sales Agent/ License No. Email Phone Associate

Sales Agent/Associate’s Name License No. Email Phone

Buyer/Tenant/Seller/Landlord Initials Date

Regulated by the Texas Real Estate Commission InformaƟon available at www.trec.texas.gov IABS 1-0 | 13