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TACO BUENO CORPORATE | NNN 15 YEAR LEASE TERM KIDDER.COM OFFERING MEMORANDUM | 1380 FM 148 | TERRELL, TX 75160 TABLE OF CONTENTS

01 INVESTMENT SUMMARY

02 EXCLUSIVELY LISTED BY BROKER OF RECORD PROPERTY DESCRIPTION

PAULA DANKER, CCIM ROBERT RIEK, ESQ. 858.369.3054 [email protected] [email protected] 03 LIC N° 01009448 KIDDER.COM KIDDER MATHEWS OVERVIEW

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Kidder Mathews and should not be made available to any other person or entity without the written consent of Kidder Mathews. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Kidder Mathews has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Kidder Mathews has not verified, and will not verify, any of the information contained herein, nor has Kidder Mathews conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the information and bears all risk for any inaccuracies. 01 INVESTMENT SUMMARY

THE OFFERING

PROPERTY OVERVIEW

INVESTMENT HIGHLIGHTS

SCHEDULED RENT

TENANT OVERVIEW

TERRELL, TX  OFFERING MEMORANDUM  KIDDER MATHEWS 3 INVESTMENT SUMMARY THE OFFERING Kidder Mathews is pleased to present to qualified investors, a PROPERTY OVERVIEW single tenant, corporate Bueno Restaurant located in the Price $2,112,000 $105,600 east Dallas suburb of Terrell, Texas. The Property consists of Annual rent (starting August 1, 2021) a ± 0.89 acre parcel of land improved with a ±2,850 SF quick Cap rate 5.00% service Tex-Mex restaurant with a drive through window, on an out-parcel to the Crossroads at Terrell. Taco Bueno stayed Price Per SF $741 open during COVID-19. In addition to the convenient drive-thru Corporate Guarantee Yes window, Taco Bueno offers dine-in, pick up or delivery. Lease term 15 years Lease commencement August 1, 2016 The Crossroads at Terrell is a large master planned The Crossroads at Terrell is easily accessible from all development that provides potential for a 1+ million directions and services the eastern side of the Dallas Fort Lease Expiration July 31, 2031 square foot power center, along with mixed uses, including Worth area and the greater East Texas area including all hotels, office, service uses and multi-family of Kaufman and Van Zandt Counties. According to the Option to renew Four, 5-year options housing. Phase I of the power center opened in 2019. most recent U.S. Census data, Kaufman County has grown The lead anchor tenant is Schulman Entertainment’s Film significantly over the past 5 years. It is the third fastest- Rent increases See Page 6 Alley, a 75,000 SF hybrid theater family entertainment growing county in the country and the second fastest- Occupancy 100% center featuring 8 dine-in theatre auditoriums, 24 bowling growing in Texas for counties with a population above lanes, a full-service sports bar and a state of the art arcade. 20,000. Building area ±2,850 SF Other anchor tenants include a 55,000 SF Hobby Lobby, a 40,000 SF Academy Sports, a 22,000 SF Ross Dress for Less, SALE PRICE Land area ±38,768 SF (.89 acres) a 21,500 SF Marshall’s, a 20,000 SF Burke’s Outlet, a 14,000 $2,112,000 SF Petco, a 10,000 SF Ulta, an 8,500 SF Five Below and a Year built 2016 6,000 Rack Room Shoes. T-Mobile, Sports Clips, America’s Best Vision and others have occupied shop lease spaces. Tenant Taco Bueno Restaurant 5% CAP RATE Restaurant tenant’s joining Taco Bueno on nearby pad Lease type Absolute Triple Net (NNN) sites include: Chipotle, , Chick-fil-A, Raising Cane’s, Olive Garden, Chili’s, and Freddy’s Frozen Custard. Drive-Thru Yes

Directly across FM 148 is the 89-acre Terrell Marketplace 10 YEARS REMAINING Fee simple Yes - Land & Building development, currently anchored by a 20-acre Buc-ee’s 2031 ON 15-YEAR Travel Center, Fairfield Inn & Suites by Marriott, TRU Hotel by ROFR No Hilton, , Starbuck’s, and Discount Pole sign Yes Tire. Baylor Scott & White Health (largest non-profit health 2,850 SF system in North Texas) owns a 52 acre site adjacent to BUILDING AREA Parcel no. 00.0785.0002.001R.06.06 Terrell Marketplace.

TERRELL, TX  OFFERING MEMORANDUM  KIDDER MATHEWS 4 INVESTMENT HIGHLIGHTSINVESTMENT HIGHLIGHTS 168 apartment homes in a desirable community

VALUE-ADD opportunity SINGLE TENANT corporate quick service Tex-Mex STRONGrestaurant going-in yield

LEASEDESIRABLE TERM location: 15 year leaseLynnwood term withCity Center10+ years remaining NEWLY renovated clubhouse, leasing office, and ABSOLUTEfitness center TRIPLE NET lease with no landlord responsibilities 36% of the homes have been renovated LOCATED in the booming ±275,000 SF Crossroads at PROVEN renovation premiums of $135 - $240/mo. Terrell shopping center LARGE floorplans averaging ±931 square feet with SHOPPING CENTER is at the crossroads of F.M. 148 one, two, and three-bedroom homes and Interstate 20, 30 miles outside of Dallas, Texas WALKSCORE of 73: very walkable, particularly for a ±2,850 SF quick service Tex-Mex restaurant offering a suburban location convenient drive-thru, dine-in, pick-up or delivery PROPERTY re-zoned to CC (City Center) that RETAIL SYNERGY from other well-known corporate allows for increased height limit and F.A.R. retail entities including: Marshall’s, Ross, Ulta, LANDBANKHobby Lobby, opportunity: Petco, Chick-fil-A, potential Chipotle, redevelopment couldPanda allowExpress, up toRaising ±870 Cane’s,units on Olive 6.5 acres Garden, of land Chili’s and others WITHIN one mile of Alderwood Mall and other dining,DIRECTLY shopping, ACROSS andTHE entertainmentSTREET from the options 89 acre Terrell Marketplace, a busy development that includesLOCATED Fairfield at the intersection Inn & Suites of by I-405 Marriott, and I-5; DQ Grill & Chill,excellent , accessibility Buc-ee’s to major Travel employment Center, Discount hubs Tire andof Seattle, TRU by Eastside, Hilton Hotels Bothell, and Everett

TERRELL, TX  OFFERING MEMORANDUM  KIDDER MATHEWS 5 INVESTMENT SUMMARY

SCHEDULED RENT Dates Monthly Rent Annual Rent November 1, 2018 - July 31, 2021 $7,500.00 $90,000.00 August 1, 2021 - July 31, 2026 $8,800.00 $105,600.00 August 1, 2026 - July 31, 2031 $9,680.00 $116,160.00 August 1, 2031 - July 31, 2036 (First Option) $10,648.00 $127,776.00 August 1, 2036 - July 31, 2041 (Second Option) $11,712.80 $140,543.60 August 1, 2041 - July 31, 2046 (Third Option) $12,884.08 $154,608.96 August 1, 2046 - July 31, 2051 (Fourth Option) $14,171.49 $170,069.08

TERRELL, TX  OFFERING MEMORANDUM  KIDDER MATHEWS 6 TENANT PROFILE 54 YEARS IN BUSINESS

Acquired by Sun Holdings, Inc. Taco Bueno is a U.S.-based, in 2019 OWNERSHIP quick service restaurant chain specializing in Tex-Mex-style Sun Holdings, Inc. cuisine. Taco Bueno stayed open Owns & Operates Over 1,000 Locations in 12 States during COVID-19. In addition to LOCATIONS the convenient drive-thru window, Approximately Taco Bueno offers dine-in, pick up 292 's, or delivery. 150 Popeye's, 94 Arby's, 36 IHOP's, & 150 Taco Taco Bueno was founded in 1967 and opened its first Bueno Sites site in Abilene Texas. For 52 years it was a privately held SUN HOLDING, INC'S RESTAURANT PORTFOLIO company operating nearly 150 restaurants throughout the American South and Southwest – including Kansas, Oklahoma and Texas. Taco Bueno was acquired in 2019 by Sun Holdings, Inc.

Founded in 1997, Sun Holdings is the 3rd largest franchisee in the U.S. and has developed a portfolio that operates over 1,000 locations in 12 states. The organization operates approximately 292 Burger Kings, 150 Popeye’s, 94 Arby’s, 36 IHOPs, 160 T-Mobile stores, 80 GNC locations, 150 Taco Bueno sites, 10 restaurants in various airports, was well as ±160 multifamily units and holds over 20 parcels of land for future restaurant development.

Now, over 54 years later, with the guidance and experience of the leadership at Sun Holdings, Inc., Taco Bueno is committed to providing an authentic, better tasting Tex-Mex experience through made-fresh-daily preparations, hand-selected ingredients and genuine friendly hospitality. TERRELL, TX  OFFERING MEMORANDUM  KIDDER MATHEWS 7 02 PROPERTY DESCRIPTION

CROSSROADS AT TERRELL

TRAFFIC COUNT & NEIGHBORING TENANTS

DEMOGRAPHICS & INCOME PROFILE

TERRELL, TX OVERVIEW

TERRELL, TX  OFFERING MEMORANDUM  KIDDER MATHEWS 8 CROSSROADS AT TERRELL Taco Bueno is located in Kaufman County, 30 miles outside of Dallas in the 275,000 SF shopping center Crossroads at Terrell.

The Crossroads at Terrell is a large master planned development that provides potential for a 1+ million square foot power center, along with mixed uses, including restaurants hotels, office, service uses and multi-family housing. Phase I of the power center opened in 2019. The lead anchor tenant is Schulman Entertainment’s Film Alley, a 75,000 SF hybrid theater family entertainment center featuring 8 dine-in theatre auditoriums, 24 bowling lanes, a full-service sports bar and a state of the art arcade. Other anchor tenants include a 55,000 SF Hobby Lobby, a 40,000 SF Academy Sports, a 22,000 SF Ross Dress for Less, a 21,500 SF Marshall’s, a 20,000 SF Burke’s Outlet, a 14,000 SF Petco, a 10,000 SF Ulta, an 8,500 SF Five Below and a 6,000 Rack Room Shoes. T-Mobile, Sports Clips, America’s Best Vision and others have occupied shop lease spaces. Restaurant tenant’s joining Taco Bueno on nearby pad sites include: Chipotle, Panda Express, Chick-fil-A, Raising Cane’s, Olive Garden, Chili’s, and Freddy’s Frozen Custard.

Directly across the street from the Crossroads at Terrell is the Terrel Marketplace, anchored by a 20-acre Buc- ee’s Travel Center. The Terrell Marketplace also includes national tenants such as Fairfield Inn & Suites by Marriott, TRU by Hilton Hotels, Starbucks, Whataburger, Dairy Queen and Discount Tire.

Baylor Scott and White Health own a 50+ acre site adjacent to the Crossroads at Terrell which will be used for the future home of Baylor Health Care center and campus.

TERRELL, TX  OFFERING MEMORANDUMREPRESENTATIVE  KIDDER PHOTOS MATHEWS 9 CROSSROADS AT TERRELL | NEIGHBORING TENANTS RETAIL 1 Academy Sports and Outdoors

2 Chick-Fil-A

3 Film Alley

4 Chipotle

5 Hobby Lobby

6 Ross Dress for Less

7 Panda Express 25,000+ Daily 8 Petco

01 09 9 Olive Garden

10 Chili's Bar and Grill 05 11 Buc-ee's 06 12 16 10 Freddy's Frozen Custard and Steakburgers 17 13 Marshalls 15 14 Ulta 14 01 22 13 15 Burke's Outlet 02 21 08 20 02 16 Five Below

19 17 Rack Room Shoes 03 18 12 18 Starbucks

19 DQ Grill & Chill 07 20 Whataburger 04 11 21

22 Discount Tire

TACO BUENO HOTELS

1 Fairfield Inn & Suites

2 Tru by Hilton 30,556+ Daily

TERRELL, TX  OFFERING MEMORANDUM  KIDDER MATHEWS 10 have encouraged the development of employment Just 30 miles from Dallas, Terrell, opportunities in a range of industries, from healthcare Texas offers small town charm to all types of manufacturing. with the convenience of being Also progressive is Terrell’s approach to education, near a big city. Terrell is one of as seen in the Terrell Independent School District (or several communities outside of TISD), a fully accredited education program designed Dallas experiencing a large boom to raise the bar in education by setting high standards in retail. for its profressional staff and providing outstanding academic programs for its 4000 students. Terrell is Historical tours of this former depot also home to campuses of Trinity Valley Community town are conducted in period dress, College and Southwestern Christian College. providing a true experience of life in the city’s beautiful old homes Terrell, Texas offers a mix of entertainment opportunities and vintage buildings. Companies including historical sight seeing, shopping in the looking to expand or relocate find historical downtown area or the Tanger Outlet TERRELL, Terrell’s progressive approach Center, as well as several outdoor activities. Terrell is to economic development an surrounded by some of the best fishing in Texas, home attractive alternative. Tax abatement to the largest catfish in Texas (104 pounds) as well as TEXAS and other financial incentives eight of the top 10 largemouth bass caught in Texas.

32

MILES EAST OF DALLAS, TX

5,907

HOUSEHOLDS

18,869

POPULATION

TERRELL, TX  OFFERING MEMORANDUM  KIDDER MATHEWS 11 1380 FM 148, TERRELL, TX 75160

LAKE RAY HUBBARD 205 34 DEMOGRAPHICS 5 MILES AND INCOME PROFILE

FORNEY 3 MILES DEMOGRAPHICS TERRELL TOTAL POPULATION 1 Mile 3 Miles 5 Miles 80 2020 865 7,835 17,431 1 MILE 80 2025 851 9,991 29,266

SUBJECT TOTAL HOUSEHOLDS PROPERTY 20 2020 329 3,609 9,169 2025 326 3,664 9,849 HEARTLAND WILSON AVERAGE HOUSEHOLD INCOME

2020 $35,508 $50,358 $73,128

175 34 2025 $37,712 $52,620 $77,919 ABNER

75 205 30 UNION VALLEY NORTH 635 GARLAND DALLAS 276 35E 276

30 LAKE RAY WHITE HUBBARD 205 75 ROCK LAKE 34 35E

80

30 DALLAS 635 30 MILES FORNEY 80 TERRELL MESQUITE 80 35E 45 SUBJECT 20 20 PROPERTY

20 67 34 TERRELL, TX  OFFERING MEMORANDUM  KIDDER MATHEWS 12

20

67 03 KIDDER MATHEWS OVERVIEW

TERRELL, TX  OFFERING MEMORANDUM  KIDDER MATHEWS 13 COMMERCIAL BROKERAGE

$8B ANNUAL TRANSACTION VOLUME SEATTLE SOUTH SEATTLE NO. OF BROKERS BELLEVUE 470+ OLYMPIA TACOMA KIDDER PORTLAND MATHEWS VALUATION ADVISORY 1,800+ ASSIGNMENTS ANNUALLY

TOTAL NO. OF APPRAISERS / MAIS RENO 39/20 OVERVIEW SACRAMENTO

ROSEVILLE SAN FRANCISCO We know the West Coast. PLEASANTON REDWOOD SILICON VALLEY In fact, we’re its largest SHORES independent commercial real PROPERTY MANAGEMENT estate firm. Our team boasts 900 local market specialists and DOWNTOWN LA top-producing professionals— WEST LA SF UNDER MANAGEMENT PASADENA/TRI-CITIES 70M+ serving out of 21 offices across EL SEGUNDO ORANGE COUNTY five states. The expertise of each PHOENIX CARLSBAD local office is reinforced by the SAN DIEGO relationships, intelligence, and This ensures our clients are armed experience of our entire firm. to capitalize on market trends in AWARD-WINNING SERVICES the most competitive real estate Inc 5000 Fastest Growing markets in the West. 6 WE DON’T JUST KNOW THE Private Companies MARKET, WE DRIVE IT We offer a complete range of GlobeSt.com Fastest Growing 1 It’s no secret that having a team brokerage, appraisal, property CRE Company deeply embedded in your management, consulting, project market gives you the edge. Our and construction management, and SDBJ Largest CRE Firms 5 professionals deliver insights debt and equity finance services for SDBJ Top Industrial Commercial Real 3 that go beyond data and identify all property types, giving our clients Estate Sales unexpected avenues for growth. the competitive edge they need.

TERRELL, TX  OFFERING MEMORANDUM  KIDDER MATHEWS 14 EXCLUSIVELY REPRESENTED BY

PAULA DANKER, CCIM 858.369.3054 [email protected] LIC N° 01009448

BROKER OF RECORD

ROBERT RIEK, ESQ. [email protected]

KIDDER.COM