Representative Photo Red EXCLUSIVE NET - LEASE OFFERING

OFFERING

MEMORANDUM 721 US 27 North, Sebring, FL 33870 Confidentiality and Disclaimer Marcus & Millichap hereby advises all prospective purchasers of and lease guarantees, Buyer is responsible for conducting his/her NON-ENDORSEMENT NOTICE Net Leased property as follows: own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) The information contained in this Marketing Brochure has been likelihood of locating a replacement tenant if the current tenant is not affiliated with, sponsored by, or endorsed by any obtained from sources we believe to be reliable. However, Marcus should default or abandon the property, and the lease terms that commercial tenant or lessee identified in this marketing package. & Millichap has not and will not verify any of this information, nor Buyer may be able to negotiate with a potential replacement The presence of any corporation’s logo or name is not intended to has Marcus & Millichap conducted any investigation regarding tenant considering the location of the property, and Buyer’s legal indicate or imply affiliation with, or sponsorship or endorsement these matters. Marcus & Millichap makes no guarantee, warranty ability to make alternate use of the property. by, said corporation of M&M, its affiliates or subsidiaries, or any or representation whatsoever about the accuracy or completeness By accepting this Marketing Brochure you agree to release Marcus agent, product, service, or commercial listing of M&M, and is of any information provided. & Millichap Real Estate Investment Services and hold it harmless solely included for the purpose of providing tenant lessee from any kind of claim, cost, expense, or liability arising out of information about this listing to prospective customers. As the Buyer of a net leased property, it is the Buyer’s your investigation and/or purchase of this net leased property. responsibility to independently confirm the accuracy and ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE completeness of all material information before completing any CONFIDENTIALITY AND DISCLAIMER CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE purchase. This Marketing Brochure is not a substitute for your DETAILS. thorough due diligence investigation of this investment The information contained in the following Marketing Brochure is ZAB0330921 opportunity. Marcus & Millichap expressly denies any obligation proprietary and strictly confidential. It is intended to be reviewed SPECIAL COVID-19 NOTICE to conduct a due diligence examination of this Property for Buyer. only by the party receiving it from Marcus & Millichap and should All potential buyers are strongly advised to take advantage of not be made available to any other person or entity without the their opportunities and obligations to conduct thorough due Any projections, opinions, assumptions or estimates used in this written consent of Marcus & Millichap. This Marketing Brochure diligence and seek expert opinions as they may deem necessary, Marketing Brochure are for example only and do not represent has been prepared to provide summary, unverified information to especially given the unpredictable changes resulting from the the current or future performance of this property. The value of a prospective purchasers, and to establish only a preliminary level continuing COVID-19 pandemic. Marcus & Millichap has not been net leased property to you depends on factors that should be of interest in the subject property. The information contained retained to perform, and cannot conduct, due diligence on behalf evaluated by you and your tax, financial and legal advisors. herein is not a substitute for a thorough due diligence of any prospective purchaser. Marcus & Millichap’s principal investigation. Marcus & Millichap has not made any investigation, expertise is in marketing investment properties and acting as Buyer and Buyer’s tax, financial, legal, and construction advisors and makes no warranty or representation, with respect to the intermediaries between buyers and sellers. Marcus & Millichap should conduct a careful, independent investigation of any net income or expenses for the subject property, the future projected and its investment professionals cannot and will not act as leased property to determine to your satisfaction with the financial performance of the property, the size and square footage lawyers, accountants, contractors, or engineers. All potential suitability of the property for your needs. of the property and improvements, the presence or absence of buyers are admonished and advised to engage other contaminating substances, PCB’s or asbestos, the compliance with professionals on legal issues, tax, regulatory, financial, and Like all real estate investments, this investment carries significant State and Federal regulations, the physical condition of the accounting matters, and for questions involving the property’s risks. Buyer and Buyer’s legal and financial advisors must request improvements thereon, or the financial condition or business physical condition or financial outlook. Projections and pro forma and carefully review all legal and financial documents related to prospects of any tenant, or any tenant’s plans or intentions to financial statements are not guarantees and, given the potential the property and tenant. While the tenant’s past performance at continue its occupancy of the subject property. The information volatility created by COVID-19, all potential buyers should be this or other locations is an important consideration, it is not a contained in this Marketing Brochure has been obtained from comfortable with and rely solely on their own projections, guarantee of future success. Similarly, the lease rate for some sources we believe to be reliable; however, Marcus & Millichap analyses, and decision-making. properties, including newly-constructed facilities or newly- has not verified, and will not verify, any of the information acquired locations, may be set based on a tenant’s projected sales contained herein, nor has Marcus & Millichap conducted any 721 US 27 North, with little or no record of actual performance, or comparable investigation regarding these matters and makes no warranty or Sebring, FL 33870 rents for the area. Returns are not guaranteed; the tenant and any representation whatsoever regarding the accuracy or guarantors may fail to pay the lease rent or property taxes, or may completeness of the information provided. All potential buyers fail to comply with other material terms of the lease; cash flow must take appropriate measures to verify all of the information may be interrupted in part or in whole due to market, economic, set forth herein. environmental or other conditions. Regardless of tenant history Table of Contents Investment Highlights 4 Financial Analysis 5 Concept Overview 6-12 Surrounding Area 13 Location Overview 14 Local Map 15 Regional Map 16 Demographics 17 Market Overview 18

Representative Photo Investment Highlights PRICE: $4,598,258 | CAP: 6.00% | RENT: $275,895

About the Investment ✓ Long-Term, Absolute Triple-Net (NNN) Lease with Approximately 23 Years Remaining on the Base Term ✓ Corporate Tenant | Corporate Guaranty ✓ Attractive Rental Increases of Two Percent (2.00%) Annually ✓ Four (4), Five (5)-Year Tenant Renewal Options About the Location ✓ Dense Retail Corridor | Walmart, Home Depot, Lowe’s, Aaron’s, Marshalls, Ross Dress for Less, Office Depot, , Chili's, Outback Steakhouse, Ihop, McDonald’s, Wendy’s, , and Many More ✓ Heavily Trafficked Area | US 27 North| Average Daily Traffic Counts Exceeding 36,500 Vehicles ✓ Multiple Hospitality Accommodations | Tru By Hilton, Inn on the Lakes, Holiday Inn Express, Residence Inn by Marriot, La Quinta Inn and Suites and More ✓ Strong Visibility and Ease of Access Along US 27 North ✓ Multiple Academic Institutions | Sebring High School | Approximately Four Miles from Subject Red Lobster | Over 1,500 Students Enrolled ✓ Highlands Regional Medical Facility | 126 Staffed Beds | Approximately Four Miles from Subject Red Lobster About the Tenant / Brand ✓ Red Lobster is the largest concept in the world and is an iconic full- service brand with broad demographic appeal and a significant advertising budget (2nd- largest in casual dining) ✓ The Company was founded in 1968 and currently operates over 700 throughout the and , and has more than 40 franchised restaurants in international markets ✓ Red Lobster is led by an experienced management team with a history of success leading the brand (average 27+ years experience across executive team) ✓ The company generates $2.5B in revenue and is the 6th-largest casual dining concept in ✓ Recently acquired by an investment group led by Thai Union Group, one of the worlds largest seafood distributors

Red Lobster 4 Financial Analysis PRICE: $4,598,258 | CAP: 6.00% | RENT: $275,895 PROPERTY DESCRIPTION RENT SCHEDULE Property Red Lobster Lease Year Annual Rent Monthly Rent Rent Escalation Current $275,895 $22,991 - Property Address 721 US 27 North Year 9 $281,413 $23,451 2.00% City, State ZIP Sebring, FL 33870 Year 10 $287,041 $23,920 2.00% Year Built / Renovated 1992 / 2003 Year 11 $292,782 $24,398 2.00% Year 12 $298,638 $24,886 2.00% Building Size (SF) 6,567 Year 13 $304,610 $25,384 2.00% Lot Size (Acres) +/- 1.83 Year 14 $310,703 $25,892 2.00% Type of Ownership Fee Simple Year 15 $316,917 $26,410 2.00% Year 16 $323,255 $26,938 2.00% THE OFFERING Year 17 $329,720 $27,477 2.00% Purchase Price $4,598,258 Year 18 $336,314 $28,026 2.00% Year 19 $343,041 $28,587 2.00% CAP Rate 6.00% Year 20 $349,902 $29,158 2.00% Annual Rent $275,895 Year 21 $356,900 $29,742 2.00% Year 22 $364,038 $30,336 2.00% LEASE SUMMARY Year 23 $371,318 $30,943 2.00% Property Type Net-Leased Restaurant Year 24 $378,745 $31,562 2.00% Year 25 $386,320 $32,193 2.00% Tenant Red Lobster Hospitality, LLC Year 26 $394,046 $32,837 2.00% Guarantor Red Lobster Intermediate Holdings, LLC Year 27 $401,927 $33,494 2.00% Lease Commencement July 28, 2014 Year 28 $409,965 $34,164 2.00% Year 29 $418,165 $34,847 2.00% Lease Expiration July 31, 2044 Year 30 $426,528 $35,544 2.00% Lease Term Remaining 23 Years Lease Type Triple Net (NNN) INVESTMENT SUMMARY Roof & Structure Tenant Responsible Marcus & Millichap is pleased to present the exclusive offering for a Red Lobster located at 721 US 27, in Sebring, FL. The site consists of roughly 6,567 rentable square feet of building Rental Increases 2.00% annually space on an estimated 1.83-acre parcel of land. This Red Lobster is subject to a long-term, Options to Renew Four (4), Five (5)-Year Options absolute triple-net (NNN) lease, which commenced July 28, 2014. The current annual rent is $275,895 and is scheduled to increase by 2.00% annually throughout the remainder of the base term and in each of the four (4), five (5)-year tenant renewal options.

Red Lobster 5 Concept Overview About Red Lobster • Red Lobster is the largest seafood restaurant concept in the world and is an iconic full service brand with broad demographic appeal and a significant advertising budget (2nd largest in casual dining). • The Company was founded in 1968 and currently operates 700+ restaurants throughout the United States and Canada and has 40+ franchised restaurants in international markets. • Red Lobster is led by an experienced management team with a history of success leading the brand (average 27+ years experience across executive team). • The company generates $2.5B in revenue and is the 6th largest casual dining concept in North America. The Transaction

• On August 31st, 2020, a group led by Thai Union Group (“TUG”) acquired Red Lobster from Golden Gate Capital. • Thai Union Group was previously a minority owner of Red Lobster – first acquiring a 25% stake in the company in 2016. • The new ownership group now includes Thai Union Group, current Red Lobster management, and a newly formed investment group, Seafood Alliance, which is led by two prominent global restaurant operators.

Red Lobster 6 Concept Overview

OUR HISTORY

FRESH IS IN OUR FOOD FRESH IS IN OUR DEDICATION Each day, you’ll find an updated selection of fresh fish on We hold ourselves to the highest standards for service, our Today’s Fresh Fish menu, not to mention live Maine quality and a welcoming atmosphere. And we’re focused lobster, freshly baked Cheddar Bay Biscuits™, crisp salads on doing what’s right – for our employees, in our and a host of fresh seafood recipes waiting to be communities and in the world. explored.

FRESH IS IN OUR KNOWLEDGE FRESH IS IN OUR COMMITMENT No one knows seafood better than we do. As global You deserve the freshest food and thinking. So every time seafood buyers, we have employees stationed you visit one of our seafood restaurants or our online throughout the world who inspect our seafood the seafood store, you’ll find an uncommon commitment to moment it comes out of the water. They ensure it meets deliver the best of the sea with fresh energy and fresh standards that are second to none. Then, the renowned ideas that we hope will make you want to come back chefs at our culinary center deliver the fresh expertise again and again. that turns it all into something truly special.

We invite you to come in and experience our commitment to quality for yourself. Whether it’s choosing your favorite fresh fish from our “Today’s Fresh Fish” menu, or selecting your favorite seafood to be prepared over our wood-fired grill, Red Lobster is the place you can enjoy fresh, delicious seafood now and for generations.

Red Lobster 7 Concept Overview

2018

We celebrate our 50th anniversary of serving fresh, delicious seafood 2020

Acquisition by Thai Union Group

Red Lobster 8 Concept Overview

Strong Market Position Significant Scale With Broad Geographic Reach

• Red Lobster is the largest seafood restaurant concept in the world and the 6th largest casual dining concept in the United States with over $2.5 billion in annual sales and 700+ restaurants. • The Company is the category killer in the seafood casual dining space, holding almost 50% market share. • Largest share of any restaurant concept in any segment. • 6th largest overall casual dining concept in the US.

6th Largest Casual Dining Concept in the US ~50% Share in Seafood Casual Dining

Red Lobster 9 Concept Overview

Iconic Brand With Unparalleled Customer Healthy and Recently Remodeled Restaurant Loyalty Base

• Red Lobster has strong consumer appeal and broad usage • Over $320 million invested in remodels covering >90% of across multiple dining out occasions, including high-crave, restaurants over the past 9 years. healthier “good for you” and special meal occasions. • $1.4 billion in overall capital expenditure investment over • The brand has a strong foundation of loyal guests, who visit 1- the past 11 years. 2 times per month and account for more than 50% of sales. • New Bar Harbor format has strong appeal across customer • Red Lobster is the clear leader in casual dining seafood, and base. the most indispensable brand among major casual dining concepts, further indicating strong consumer loyalty.

Indispensability vs. Peers New Bar Harbor Format Before After

Indispensability (How difficult it would be for me to ‘give up’ ever going there again ) - % very difficult (10 out of 10) shown

Red Lobster 10 Concept Overview

Red Lobster is led by an experienced management team with prior success leading the brand. • Kim served as President of Red Lobster from FY2005 to FY2011, a period of consistent, above-market Kim Lopdrup growth for the brand CEO • Prior to his return to Red Lobster, Kim served as President of Specialty Restaurant Group and New (31 years in Restaurant Business Industry) • Before joining Darden, Kim served as EVP and COO of North America for Burger King, and at Dunkin’ Brands as VP of Marketing and CEO of its international division • BBA, College of William & Mary; MBA with distinction, Harvard Business School

• Salli was named President of Red Lobster in July of 2013 • Prior to her promotion to President, Salli served as Red Lobster’s EVP of Marketing, before which she Salli Setta held numerous roles in Marketing and Culinary at Olive Garden during its turnaround, including VP President Marketing and SVP Culinary and Beverage (28 years in Restaurant • 24 years of experience in restaurant marketing, advertising and menu development; named “Menu Industry) Strategist of the Year” in 2003; recipient of three Menu Masters’ Awards and a Silver Effie for her work on the “Hospitaliano” ad campaign • BA, University of Central Florida; MBA, Florida Institute of Technology

• Bill served as CFO of Red Lobster from FY2006 to FY2010 Bill Lambert • Prior to his return to Red Lobster, Bill served as CFO of LongHorn Steakhouse CFO • Prior to joining Darden and Red Lobster, Bill spent 21 years with Federated Department Stores in various (12 years in Restaurant roles including CFO of Macy’s Central Industry) • BS, Duke University; MBA, University of Michigan

• Chip Wade Darryl “Chip” Wade is EVP of Operations at Red Lobster EVP • Previously, Chip held positions in Enterprise Operations at Darden and as SVP of its brand Operations • Outside of Darden, Chip previously served as COO of Legal Sea Foods and in various operations (30 years in Restaurant management roles at TGI Friday’s Industry) • BA, Widener University; MBA, University of Texas

Red Lobster 11 Concept Overview

• Founded in 1977, Thai Union has a rich history of commitment to seafood expertise and innovation around the world. • Thai Union Group, based out of Thailand with offices North America, Europe, the Middle-East and Asia, currently serves as a main supplier of seafood for Red Lobster’s across the world. • Thai Union Group has been listed on the Stock Exchange of Thailand (SET) since November 1994 • Prior to the Red Lobster acquisition, Thai Union Group reported annual sales of over $4.1 Billion • Through acquisitions and organic growth, TUG’s ambitious expansion strategy has established a diverse global brand portfolio. Covering three continents, their brands are consumer favorites and market leaders with a wide range of products including shelf-stable seafood products, frozen and chilled seafood, PetCare products and more. • TUG has a long, successful track record and significant experience servicing consumers, supermarkets, restaurants, hospitality and others.

Global Brands and Partnerships

Red Lobster 12 Surrounding Area 721 US 27 North, Sebring, FL 33870

Lakeshore Mall

Red Lobster 13 Location Overview 721 US 27 North, Sebring, FL 33870

This Red Lobster is located at 721 US 27 North in Sebring, Florida. US 27 North boasts an average daily traffic count of approximately 36,5000 vehicles and serves as the main artery through central Florida. There are more than 25,000 individuals residing within a three-mile radius of the subject property and approximately 45,700 individuals within a five-mile radius.

The subject property is well-positioned in a dense retail corridor, benefiting from its proximity to major national and local retailers, hospitality accommodations, and other points of interest. Major national retailers within immediate proximity to the ADTC: 36,500 subject property include Walmart, Home Depot, Lowe’s, Aaron’s, Marshalls, Ross Dress for Less, Office Depot, Olive Garden, Chili's, Outback Steakhouse, Ihop, McDonald’s, Wendy’s, Burger King, Taco Bell as well as many others. Additionally, this Red Lobster is located within a 2-mile radius to multiple hospitality accommodations. These include: Tru By Hilton, Inn on the Lakes, Holiday Inn Express, Residence Inn by Marriot, La Quinta Inn and Suites as well as others. This Red Lobster is also situated approximately four miles from Highlands Regional Medical Facility, a 126-bed, in-patient, full service medical center. Additionally, this site benefits from its proximity to multiple academic institutions. Most notably, Sebring High School, is located approximately four miles from the subject property and has an enrollments of over 1,500 students.

Sebring, Florida is a city in Highlands County, Florida, nicknamed "The City on the Circle", in reference to Circle Drive, the center of the Sebring Downtown Historic District. Sebring is the home of the Sebring International Raceway, created on a former airbase, first used in 1950. It hosted the 1959 Formula One United States Grand Prix yet is best known as the host of the 12 Hours of Sebring, an annual WeatherTech SportsCar Championship race. Nearby Highlands Hammock State Park is a popular attraction. Sebring, 87 miles south of Orlando just off U.S. Route 27, has no Interstate access, but it attracts visitors with its Old Florida downtown historic district, golf courses and Sebring International Raceway. Founded in 1912, Sebring evokes a small-town Americana ambiance with its quaint and walkable downtown area that's listed on the National Register of Historic Places. Local restaurants, boutique shops and a step-back-in-time park in the middle of downtown make it a great place to unwind.

Red Lobster 14 Local Map 721 US 27 North, Sebring, FL 33870

Tampa International Airport (TPA)

Sebring Regional Airport (SEF)

Red Lobster 15 Regional Map 721 US 27 North, Sebring, FL 33870

FLORIDA

Red Lobster 16 Demographics 721 US 27 North, Sebring, FL 33870

3 Miles 5 Miles 10 Miles POPULATION 10 Miles 2024 Projection 25,240 46,184 71,033 2019 Estimate 25,047 45,749 70,568 2010 Census 24,108 44,095 68,156 2000 Census 20,893 36,114 60,382

5 Miles INCOME Average $51,766 $51,345 $51,071 Median $39,481 $38,379 $38,096 3 Miles Per Capita $24,627 $23,513 $22,364

HOUSEHOLDS 2024 Projection 11,895 21,049 30,979 2019 Estimate 11,712 20,684 30,541 2010 Census 11,231 19,849 29,376 2000 Census 9,773 16,295 25,903

HOUSING 2019 $109,204 $103,799 $106,744

EMPLOYMENT 2019 Daytime Population 29,975 54,512 78,333 2019 Unemployment 3.63% 5.01% 5.66% 2019 Median Time Traveled 18 Mins 19 Mins 21 Mins

RACE & ETHNICITY White 87.19% 81.90% 78.14% Native American 0.07% 0.05% 0.04% African American 5.53% 9.10% 11.42% Asian/Pacific Islander 1.38% 1.81% 1.64%

Red Lobster 17 Market Overview 721 US 27 North, Sebring, FL 33870

Lakeland is a city in Polk County, Florida, along Interstate 4 east of Tampa, approximately 50-miles north of Sebring, Florida. The Lakeland, FL westernmost city in Polk County, it is part of the Tampa Bay Area. Dotted with 38 lakes, the aptly named city is only a 25-minute drive from the Walt Disney World Resort complex and 35 minutes from downtown Tampa.

Lakeland is the largest city on Interstate 4 between Orlando and Tampa. Large industries in the Lakeland area are citrus, cattle, and phosphate mining. In the past decade, tourism, medicine, insurance, transportation, and music have grown in importance. Lakeland's largest employer is Publix Supermarkets. Publix employs over 6,500 people in the Lakeland area including headquarter and warehouse employees. Lakeland is a transportation hub. FedEx Freight and FedEx Services and the Saddle Creek Corporation employ over 600 people in the area. Other large employers in the area include Amazon, GEICO, Rooms To Go, and Lakeland Regional Health.

The many picturesque lakes serve as natural buffers from development, giving Lakeland the laid-back feel of a much smaller city. It's home to the largest collection of Frank Lloyd Wright architecture in the world at Florida Southern College. Lakeland is an attractive destination for people who enjoy leisurely sports. Every March for decades, the city has served as the spring training home for the Detroit Tigers. Additionally, there are 18 courses with designer tags like Ron Garl, Steve Smyers and Jerry Pate.

Red Lobster 18 Glen Kunofsky Matthew Anuszkiewicz [email protected] [email protected] 212.430.5115 | NY: 10301203289 914.403.7574 | NY: 10401285141

EXCLUSIVE NET-LEASE OFFERING

FL BOR: Ryan Nee Marcus & Millichap 5900 North Andrews Avenue Suite 100 Fort Lauderdale, FL 33309 Tel: (954) 245-3400 721 US 27 North, Sebring, FL 33870 License: # BK3154667