Arby's 590 N Stephanie St, Henderson, NV

ARBY’S 590 N Stephanie St Henderson, NV 89014 OFFERING MEMORANDUM TABLE OF CONTENTS INVESTMENT HIGHLIGHTS

• Dense Retail Corridor with National Tenants including Target, Old Navy, Nordstrom Rack, Barnes & Noble, Michaels, Pier 1 Imports, 3 FINANCIAL OVERVIEW Petsmart, Office Max, Chick-fil-A, and The Habit Burger Grill.

• Outparceled to Galleria Commons Shopping Center with Burlington, 4 TENANT REPORT Stein Mart, Tuesday Morning, T.J. Maxx and more • 10 Years Remaining on an Absolute NNN Lease

• Experienced Franchisee - 52 years of Operating History with Arby’s 8 AREA OVERVIEW Restaurants

• Located along Stephanie St with ±30,000 VPD EXCLUSIVELY LISTED BY • Adjacent to Galleria at Sunset a 1,048,000 sqft Mall with 133 stores • Affluent Demographics - Henderson has the 7th highest per-capita KYLE MATTHEWS income in the United States Chairman & CEO

[email protected] • Las Vegas MSA - Second Largest City in Nevada - over 300,000 DIR 949.432.4516 Residents within 5 Miles MOB 626.483.0780 LIC # B.1001860.CORP (NV) 03 Address Year Built Property Name Arby’s 590 N Stephanie St, 1997 FINANCIAL Henderson, NV OVERVIEW List Price Cap Rate Square Footage $2,177,100 6.00% ± 3,582

Annualized Operating Data Tenant Summary Monthly Rent Annual Rent Rent/SF Cap Rate 1/10/2018 - 1/9/2019 $10,885.39 $130,624.68 $36.47 6.00% Tenant Trade Name Arby’s 1/10/2019 - 1/9/2020 $10,994.24 $131,930.93 $36.83 6.06% Type of Ownership Fee Simple 1/10/2020 - 1/9/2021 $11,104.19 $133,250.24 $37.20 6.12% Lease Guarantor Franchisee 1/10/2021 - 1/9/2022 $11,215.23 $134,582.74 $37.57 6.18% Lease Type NNN 1/10/2022 - 1/9/2023 $11,327.38 $135,928.57 $37.95 6.24% Roof and Structure Tenant Responsible 1/10/2023 - 1/9/2024 $11,440.65 $137,287.85 $38.33 6.30% Original Lease Term 20 Years 1/10/2024 - 1/9/2025 $11,555.06 $138,660.73 $38.71 6.36% Rent Commencement Date 1/10/2006 1/10/2025 - 1/9/2026 $11,670.61 $140,047.34 $39.10 6.43% Lease Expiration Date 1/9/2028 1/10/2026 - 1/9/2027 $11,787.32 $141,447.81 $39.49 6.49% Term Remaining on Lease ± 10 Years 1/10/2027 - 1/9/2028 $11,905.19 $142,862.29 $39.88 6.56% Options One, 5-Year Options Increases 1% Annual Increases

3 04 Parent Company Trade Name Inspire Brands TENANT No. of Locations ± 3,500 No. of Employees ± 130,000 Headquartered Atlanta, GA REPORT Year Founded 1964

OVERVIEW

Arby’s Fast Crafted restaurant services feature a unique blend of quick-serve speed combined with the quality and made-for- you care of fast casual. Arby’s Restaurant Group, Inc. is the franchisor of the Arby’s Brand and is headquartered in Atlanta, GA. Arby’s Restaurant Group (ARG) operates the Arby’s fast food chain popular for its hot roast beef sandwiches. In addition to roast beef sandwiches, its menu features chicken sandwiches, salads, and some dessert items. More than 1,100 Arby’s locations are company-owned, while the rest are franchised.

ARBY’S RECORD YEAR Arby’s had a record year in 2016 and pushed sales over $3.6 billion according to QSR magazine. Arby’s outperformed the quick service industry by 2.3 percentage points and marked 25 consecutive quarters of SSS growth. The fourth quarter of 2016, marked 11 consecutive quarters of transaction growth and 16 consecutive quarters of industry performance for the brand. Arby’s plans to continue high volume sales by inking deals with new and exciting Arby’s franchisees for the development of 167 new restaurants system wide.

REBRANDING AND REMODELING STRATEGY Arby’s is looking to revitalize its guest experience by remodeling 229 restaurants systemwide in the Inspire design. Arby’s has re-engineered its restaurants to reduce development costs, expand site selection options, and deliver an upgraded guest experience. Arby’s has improved ROI by stripping out some of the costs of opening or remodeling a restaurant. The Inspire design reduces development and remodeling costs, increases restaurant efficiency, and is highly adaptable to a wide range of site opportunities.

4 | Arby’s - Henderson, NV SURROUNDING TENANTS

Las Vegas Expy ± 114,000 ADT

Green Valley High School

W Warm Springs Rd ± 27,000 ADT

5 AREA MAP

Great Basin Hwy ±114,000 ADT

Galleria at Sunset anch Whitney R

Shopping Center W Sunset Rd ± 30,000 ADT

Eastgate Sunset Station Plaza Hotel & Casino treet Galleria Green Valley Commons High School tephanie S S Shopping Center W Warm Springs Rd ± 27,000 ADT

Warm Springs Promenade N Stephanie St ± 34,000 ADT St N Stephanie

6 | Arby’s - Henderson, NV

PARCEL MAP N Stephanie St ± 34,000 ADT 34,000 ± St Stephanie N

7 08 AREA OVERVIEW

HENDERSON, NEVADA

Henderson is located in Clark County, just 16 miles outside of La Vegas, NV. It is the second largest city in the state and lies within the Las Vegas Metropolitan area. According to Forbes magazine, Henderson was ranked as the second-safest city in America, as well as, "One of the Best Cities to Live in America" by Bloomberg Business week.

The Henderson community offers so much to residents and visitors. It is a family-friendly area where kids have their choice of great schools and amazing recreational programs. A majority of residents have lived in the area for their whole lives and work hard to give back to their community.

With Las Vegas just around the corner, there is always something happening, and Henderson brings a lot to the table, as well. There are great outdoor activities such as hiking and biking that show off the amazing beauty of the state. There are also annual community events throughout the year that brings the city together and gives back.

8 | Arby’s - Henderson, NV ECONOMIC SNAPSHOT Henderson has been constantly growing throughout the years, and the local residents and government are looking for new and innovative ways to boost business even more. Residents in the area have the highest median education level, as well as, earn the highest median income in Southern Nevada. With the help of an outstanding quality of life and business climate Henderson offers, the economic development is non-stop. The city has attracted well-known local, regional, and national companies. With no corporate or personal income tax and the attraction from the surrounding area, Henderson has been a hot spot to building and expand business for some time.

With the population boom in the area, the past decade has established Henderson as "The Las Vegas Valley Address of Business Success." It has become the hub for business in the Southwest and has brought jobs to over 1 million people.

PROPERTY DEMOGRAPHICS 5-MILE RADIUS

305,151 119,286 2018 EST. POPULATION 2018 EST. HOUSEHOLDS

6.25% 6.31% $74,772 PROJ. POPULATION PROJ. HOUSEHOLD 2018 EST. AVERAGE GROWTH 2018 - 2023 GROWTH 2018 - 2023 HOUSEHOLD INCOME

9 LAS VEGAS, NV Located in the southern part of Nevada, the Las Vegas-Henderson-Paradise Metropolitan Statistical Area is one of the top tourist destinations in the world with over 40 million international and domestic visitors, generating a gross Metropolitan product (GMP) of over $100 billion. A central part of the Metropolitan area is the Las Vegas Valley, which is a basin that includes Las Vegas and Paradise, which is actually the famous Las Vegas Strip. In addition to containing the largest concentration of people in the state, the area continues to experience one of the highest growth rates among larger Metropolitan areas. ECONOMIC SNAPSHOT Famously known as Sin City, Las Vegas is the leading financial, commercial and cultural hub for Nevada. The city anchors the Las Vegas Valley Metropolitan area and is the largest city within the greater Mojave Desert. With the tourism industry as the driving force in its economy, Las Vegas serves as world headquarters for the world’s two largest Fortune 500 gaming companies: Caesars Entertainment and MGM Resorts International. Several companies involved in the manufacture of electronic gaming machines, such as slot machines, are located in the area as well. The lack of business and income taxes still makes Nevada an attractive place for many companies to relocate to or expand existing operations. Local healthcare providers and the University of Nevada at Las Vegas are significant employers in the city.

10 | Arby’s - Henderson, NV DEVELOPMENT TOP EMPLOYERS Recent years has shown the emergence of construction into a major industry, as upscale housing construction is booming and hotels can take years to build. It accounts for a large share of the economy in Las Vegas providing thousands of jobs and playing a vital role in both commercial and noncommercial developments. Older hotels are being torn down and replaced with new modern resorts designed to entertain visitors and surpass each other; There’s always at least one hospitality project under construction in downtown Las Vegas and The Strip.

A number of wealthy individuals, particularly business owners, have become taken with the Las Vegas area largely due to the favorable income and tax climate. The recent influx of people and tourism has fueled economic growth by driving businesses that support them, such as housing and healthcare, and the acceleration of the construction industry.

LAS VEGAS: BY THE NUMBERS

POPULATION: 2 MILLION + ANNUAL VISITORS: 42.3 MILLION (RECORD) PROJECTED JOB GROWTH: 2.6% 11 VIVA LAS VEGAS!

Proclaiming itself as The Entertainment Capital of the World, Las Vegas has historically had its major attractions be its mega casino-hotels, which offer large gambling areas and live theater performances. Today, shopping, conventions, fine dining and outdoor beauty have become attractions of their own.

Several museums are housed in the city, namely the Neon Museum, The Mob Museum, the Las Vegas Natural History Museum, the Nevada State Museum and the Old Las Vegas Mormon State Historic Park. An extensive Downtown Arts District hosts numerous galleries and events including the annual Las Vegas Film Festival.

For those outdoor enthusiasts, the surrounding mountainous terrain offers hiking and rock-climbing opportunities as well as winter skiing. Numerous natural parks are within a few hours’ driving distance, proving to be ideal weekend getaways for adventurers.

12 | Arby’s - Henderson, NV POINTS OF INTEREST

LAS VEGAS STRIP Referred to as the Las Vegas Strip, the three and a half-long stretch of Las Vegas Boulevard is packed with more than twenty of the world’s largest casino-resorts and nearly 70,000 hotel rooms. Many of the properties here, like the Luxor’s 30-story, pyramid-shaped building, are architectural wonders in their own right. At street level, one-of-a-kind spectacles, like the exploding volcano in front of the Mirage and the dancing fountains in front of the Bellagio, compete to attract the attention of passers- by.

THE GRAND CANYON

Located in northern Arizona, the Grand Canyon is known throughout the world for its size and colorful landscape. Unique combinations of geologic color and erosional forms decorate the canyon. Measuring 277 river miles long, up to 18 miles wide and a mile deep, the canyon’s walls contain beautifully preserved and exposed rock layers that reveal a timeline of the Earth’s history. The majestic vista can be experienced via helicopter ride, mule ride, river rafting, motorcoach, ATV or airplane.

HOOVER DAM

Built during the Great Depression, Hoover Dam has proved to be a marvel of engineering and labor. The dam was designed to provide essential flood control, thereby preventing damage to downstream farming communities that suffered each year when snow from the Rocky Mountains melted and joined the Colorado River. Today, the Hoover Dam is the second highest dam in the country and the 18th highest in the world. It generates enough energy each year to serve over a million people.

13 TRANSPORTATION

LAS VEGAS MONORAIL

Primarily built as a tourist transit system, the Las Vegas Monorail is the primary rapid transit system in Las Vegas. This 3.9-mile monorail mass transit system is located adjacent to the Las Vegas Strip and connects several large casinos in the Paradise and Winchester communities. Owned by the Las Vegas Monorail Company, the Las Vegas Monorail sees roughly 14,000 daily riders.

RTC TRANSIT RTC Transit is the bus system in the Las Vegas Metropolitan area of Clark County, a subsidiary of the Regional Transportation Commission of Southern Nevada. It services most of Clark County with regularly scheduled routes, most of the service is in the immediate Las Vegas Valley.

MCCARRAN INTERNATIONAL AIRPORT

Five miles from downtown Las Vegas, McCarran International Airport is the world’s tenth busiest airport by traffic movements and the only commercial airport serving the Las Vegas Valley. It sees over 45 million passengers in annual traffic and is an operating base for Allegiant Air, as well as a crew and maintenance base for Southwest Airlines and Spirit Airlines. 14 | Arby’s - Henderson, NV CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offering Memorandum contains select information pertaining to the business and affairs of the Arby’s located 590 N Stephanie St, Henderson, NV 89014. 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 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 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. EXCLUSIVELY LISTED BY KYLE MATTHEWS Chairman & CEO

[email protected] DIR 949.432.4516 MOB 626.483.0780 LIC # B.1001860.CORP (NV)