INVESTMENT OPPORTUNITY NEW BTS CONSTRUCTION | NEW 20-YEAR NNN LEASE YUCCA VALLEY, CA (SAN BERNARDINO COUNTY)

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OFFERED AT: $2,475,000 | 4.85% CAP EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

TABLE OF CONTENTS

EXECUTIVE SUMMARY 4 Executive Summary 5 Investment Highlights 6 Lease Summary & Rent Overview 7 Lease Abstract

PROPERTY INFORMATION 9 Location Maps 10 Site Plan 11 Aerials

TENANT OVERVIEW 17 About Popeyes

AREA OVERVIEW 19 Yucca Valley Overview 20 San Bernardino County Overview 21 Demographics

Confidentiality Agreement & Disclosures

EXCLUSIVELY REPRESENTED BY

RYAN BARR | Principal RYAN BENNETT | Principal 760.448.2446 760.448.2449 [email protected] [email protected] CA DRE Lic#01338994 CA DRE Lic#01826517

Color Scheme

RGB R:145 / G:0 / B:40 CMYK C:0 / M:100 / Y:65 / K:47

RGB R:119 / G:120 / B:123 CMYK C:0 / M:0 / Y:0 / K65

Fonts GOTHAM/ BLACK GOTHAM/ MEDIUM GOTHAM/ LIGHT

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POPEYES KITCHEN | Yucca Valley, CA (San Bernardino County) | 2 EXECUTIVE SUMMARY POPEYES YUCCA VALLEY, CA

POPEYES LOUISIANA KITCHEN | Yucca Valley, CA (San Bernardino County) | 3 Representative Photo EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

• Offering Summary • Investment Highlights Lease Summary & Rent Schedule Lease Abstract

-- OFFERING SUMMARY --

INVESTMENT HIGHLIGHTS Offering Price: $2,475,000 Net Operating Income: $119,962 Cap Rate: 4.85% Price/SF: $1,092 Lease Type: NNN Lease Commencement: October 1, 2018 (Estimated)

PROPERTY OVERVIEW Address: 57858 Twentynine Palms Dr Yucca Valley, CA 92284 Property Size: Approx 2,265 Sq. Ft. Land Size: 1.01 Acres Ownership: Fee Simple (Land & Building) Year Built: 2018

Lee & Associates is pleased to exclusively offer for sale the fee simple interest (land & building) in a retail investment property leased to Popeyes Louisiana Kitchen (“Popeyes”) located in Yucca Valley, in San Bernardino County, California (the “Property”). The build to suit property is currently under construction and will consist of a 2,265-square-foot retail building (with Drive-Thru) that sits on an approximately 1.01-acre parcel. The subject property is leased to Karas Foods Inc., dba Popeyes Louisiana Kitchen. Karas Foods Inc. is an experienced high net worth multi-unit operator that is providing an investor with the added security of a personal lease guaranty (financials available upon request). Popeyes is the world’s second largest quick service chicken concept as measured by total number of . As of December 31, 2017, Popeyes owned or franchised a total of 2,892 restaurants that distinguish themselves with a unique “Louisiana” style menu featuring spicy chicken, chicken tenders, fried shrimp and other seafood, red beans and rice and other regional items. The new 20-year NNN lease features 8% rent increases every five years in the Primary Term and (1) 5-year option period offering an investor a passive income stream with solid rent growth. The lease is expected to commence in October 2018, with an expiration date of September 2038. The Popeyes is ideally situated along Twenty-Nine Palms Highway/State Route 62, offering outstanding signage and visibility to 28,000+ cars per day. Twenty-Nine Palms Hwy is the main transportation artery in/out of Yucca Valley for travelers commuting to/ from Joshua Tree National Park and military personnel traveling to/from 29 Palms Marine Corps military base, home to the largest U.S. military base in the world. The subject property is located within the Yucca Valley, a town in San Bernardino County, California with a population of approximately 22,000 residents. Yucca Valley is the gateway to Joshua Tree National Park and the economic hub for the Morongo Basin. Joshua Tree National Park has become one of the most popular tourist destinations in the state and set a new attendance record again in 2017 with more than 2.8 million visitors - the fourth consecutive record-setting year. Yucca Valley has seen strong population growth as people look for a more economical option for housing. Between 2000 and 2016, the population of Yucca Valley increased by 4,416 residents or 26.2%, outpacing the San Bernardino County growth rate of 25.1%. Additionally, the median home sales price increased by 68% between 2010 and 2016, reflecting the area’s growing value in the region.

POPEYES LOUISIANA KITCHEN | Yucca Valley, CA (San Bernardino County) | 4 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Offering Summary • Investment Highlights • Lease Summary & Rent Schedule Lease Abstract

-- INVESTMENT HIGHLIGHTS --

DESIRABLE NATIONAL TENANT: POPEYES LOUISIANA KITCHEN • WORLD’S 2ND LARGEST QUICK SERVICE CHICKEN LOCATED IN THE TOWN OF YUCCA VALLEY • GATEWAY TO JOSHUA TREE NATIONAL PARK (2.8 MILLION VISITORS CONCEPT • NEW BUILD TO SUIT CONSTRUCTION • DRIVE THRU IN 2017) • SURGE IN POPULATION GROWTH & HOME VALUES The subject property is a new build-to-suit quick service (with drive-thru) that is leased to Karas Food Inc., dba The subject property is located within the Yucca Valley, a town in San Bernardino County, California with a population of Popeyes Louisiana Kitchen. approximately 22,000 residents. Yucca Valley is the gateway to Joshua Tree National Park and the economic hub for the Popeyes Louisiana Kitchen, which is the world’s second largest quick service chicken concept as measured by total number Morongo Basin. Joshua Tree has become one of the most popular tourist destinations with 2.8 million visitors in 2017. of restaurants. As of December 31, 2017, Popeyes owned or franchised a total of 2,892 restaurants, distinguished with a Yucca Valley has seen strong population growth as people look for a more economical option for housing. Between 2000 and unique “Louisiana” style menu featuring spicy chicken, chicken tenders, fried shrimp and other seafood, red beans and rice 2016, the population of Yucca Valley increased by 4,416 residents or 26.2%, outpacing the San Bernardino County growth and other regional items. rate of 25.1%. Additionally, the median home sales price increased by 68% between 2010 and 2016. BRAND NEW 20-YEAR NNN LEASE • PERSONAL LEASE GUARANTY FROM STRONG HIGH NET WORTH MULTI-UNIT STRATEGIC LOCATION WITH VISIBILITY ALONG STATE ROUTE 62/TWENTYNINE PALMS HIGHWAY (28,000 CPD) • FRANCHISEE (SEE PG 18) • STRONG RENT GROWTH LOCATION CATERS TO INTERSTATE-10 COMMUTERS HEADED TO PALM SPRINGS, SAN BERNARDINO & RIVERSIDE The operator Karas Food Inc., is an experienced high net worth multi-unit operator that is providing an investor with the The Popeyes is ideally situated along Twenty-Nine Palms Highway/State Route 62, offering outstanding signage and visibility added security of a personal guaranty (financials available upon request). to 28,000+ cars per day. Twenty-Nine Palms Hwy is the main transportation artery in/out of Yucca Valley for travelers The new 20-year NNN lease features 8% rent increases every five years in the Primary Term and (1) 5-year option period commuting to/from Joshua Tree State Park and military personnel traveling to/from 29 Palms Marine Corps military base, offering an investor a passive income stream with solid rent growth. The lease is expected to commence in October 2018, home to the largest U.S. military base in the world. with an expiration date of September 2038. Additionally, the site offers an outstanding location for drivers commuting to nearby cities, offering quick access to Interstate 10 to Palm Springs, San Bernardino, Riverside and beyond. PROXIMITY TO MARINE CORPS AIR GROUND COMBAT CENTER (“29 PALMS”) • LARGEST U.S. MILITARY BASE IN THE WORLD Popeyes is located within 28 miles of the Marine Corps Air Ground Combat Center (MCAGCC), also known as 29 Palms, which is home to the largest military training area in the nation (and the largest US base in the world), and consequently, the largest training program. The population of 29 Palms includes 12,500 active duty, 24,000 family members, and another 21,000 DoD/ Contractors. Because Southern California is a popular retirement location, 29 Palms has about 1,200 retirees in the area.

POPEYES LOUISIANA KITCHEN | Yucca Valley, CA (San Bernardino County) | 5 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Offering Summary Investment Highlights • Lease Summary & Rent Schedule • Lease Abstract

-- LEASE SUMMARY --

LEASE INFORMATION

TENANT: Karas Food, Inc. dba Popeyes Louisiana Kitchen

GUARANTOR: Personal Guaranty (See Page 18)

BUILDING SIZE: 2,265 Sq. Ft.

LOT SIZE: 1.01 Acres

RENT COMMENCEMENT (Estimated): October 1, 2018

LEASE EXPIRATION: September 30, 2038

BASE LEASE TERM: 20 Years

RENEWAL OPTIONS: (1) 5-Year Option

LEASE TYPE: NNN

LANDLORD RESPONSIBILITIES: None

RENT INCREASES: 8% Increases Every 5 Years in Primary Term & Options

ANNUAL RENT: $119,962

-- RENT SCHEDULE --

RENT SCHEDULE

TERM START DATE END DATE NOI/YR NOI/MO NOI/SF/YR

Years 1 - 5 10/1/2018 9/30/2023 $119,962.00 $9,996.67 $52.96

Years 6 - 10 10/1/2023 9/30/2028 $129,556.80 $10,796.40 $57.20

Years 10 - 15 10/1/2028 9/30/2033 $139,921.34 $11,660.11 $61.77

Years 16 - 20 10/1/2033 9/30/2038 $151,115.04 $12,592.92 $66.72

OPTION PERIODS - (1) 5-Year Option

TERM START DATE END DATE NOI/YR NOI/MO NOI/SF/YR

Option 1 10/1/2038 9/30/2043 $163,204.24 $13,600.35 $72.05

POPEYES LOUISIANA KITCHEN | Yucca Valley, CA (San Bernardino County) | 6 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Offering Summary Investment Highlights Lease Summary & Rent Schedule • Lease Abstract •

-- LEASE ABSTRACT --

In addition to Base Rent, Tenant shall pay 100% of Real Property Taxes. As used in this Lease, “Real l’ropcl’t)’ Taxes” shall be defined as all taxes, rates and assessments, general orspecial,leviedim- Property Taxes: posed with respect to the Property (including, all taxes, rates and assessments, general or special, levied or imposed for school, public betterment and/or general or local improvements) and all improvements thereto.

Tenant shall provide, at its sole expense, the insurance coverages in the amounts and under the conditions set forth in this Article. In the event Tenant assigns or transfers this Lease or any rights in this Lease or sublets Insurance: the Premises or any part of the Premises to an Affiliate of Tenant or any other party, Tenant shall use its best efforts to ensure that such assignee, transferee or sublessee provides, at its sole expense, the insurance coverages in the amounts and under the conditions set forth herein.

On or before the Occupancy Date, Tenant shall transfer water. electricity, sewage. and gas utility/service into its own name and shall pay such utility/service provider directly.

Landlord acknowledges it is responsible for the connection of water, electricity, sewage. and gas to the Premises as of the Occupancy Date except for any connection fees due to Hi-Desert Water District. Tenant shall Utilities: be solely responsible for any future connection fees, continuing assessments due regarding the Property including, but not lirnited to, any connection fees and assessments due to Hi-Desert Water District for the future sanitary treatment facility and related trunklines that will serve the Property. ln addition, at its sole cost and expense, Tenant shall be responsible for the installation and construction upon the adjacent owner’s property, pursuant lo the utility easement referenced as item #27 on Exhibit “F” hereto (the “Sanitary Sewer Easement”), of any and all sanitary sewer line(s) required to be constructed for the purpose of connecting the Property and Premises to the future sanitary treatment facility system. In connection with such installation and construction, Tenant shall comply in all respects with the provisions of the Sanitary Sewer Easement.

Tenant shall pay 100% of Operating Expenses. As used in this Iease and except as otherwise explicitly set forth in this Lease, “Operating Expenses: shall mean any and all expenses incurred by Landlord in connection with the operation. maintenance, and/or repair of the Building, the Common Areas and/or the Property including, but not limited to, the following (to the extent actually provided/paid for by Landlord): charges or fees for, and taxes on, the furnishing of electricity, water, sewer, gas/propane and other utilities (other than connection fees); security: pest control; cleaning of exterior windows and exterior walls of the Building; janitorial services for the Cornman Areas: cleaning supplies; trash removal; repair, maintenance and replacement of all landscaping: cleaning and restriping of all parking areas; repair, maintenance and replacement of all parking areas; all salaries, wages, and benefits for ernployees of Landlord engaged in the operation, maintenance, or repair of the Building or Premises, including benefits, payroll taxes and worker’s compensation insurance; license fees and governmental permits; Operating Expenses: repair, maintenance anrl replacement of equipment that services the Building, the Premises, the Common Areas and/or the Property including, but not limited to, the HVAC system(s); legal fees and costs relating to the operation, maintenance, or repair of the Propetiy or incurred in order to reduce operating expenses; service or management contracts; property management fees; costs of capital improvements to the Building or Premises made at Tenant’s request; insurance required to be maintained by Landlord pursuant to Article 6.6 hereof; all assessments, fees, charges, costs, expenses and other amounts required to be paid by the owner of the Property pursuant to any of the Restrictions (as defined in Section 4.1(b) below); any and all other costs and/or expenses incurrerd by Landlord in connection with the operation, maintenance, and repair of the interior of the Premises (to the extent actually provided by and paid for Landlord); and the costs of any other items which, under generally accepted accounting principles, consistently applies from year to year with respect to the Property.

Landlord Maintenance & Repairs: Landlord is not responsible for the maintenance or repair of any portion of the Property, the Premises, the Building, or the Common Areas during the Term.

After the Occupancy Date, Tenant shall be responsible for the maintenance and repair of the Property, the Premises, the Building and the Common Areas during the Term in first class condition. Without limiting the Tenant Maintenance & Repairs: generality of the foregoing, Tenant shall maintain and repair the interior of the Building, the exterior of the Building and the roof of the Building, the HVAC system(s) servicing the Premises and all areas outside the Building, including all Common Areas, all landscaping and all parking areas on the Property. Each Party shall, within 10 days written notice from the other Party (the “Requesting Party”), execute and deliver to the Requesting Party a statement in writing certifying that this Lease is unmodified and in full force and effect, (or, if modified, stating the nature of such modification and certifying that this Lease, as so modified, is in full force and effect); (ii) the amount of the Rent and the date to which the Rent and other charges Estoppel Certificate: are paid in advance, if any: (iii) acknowledging that there are not, to the Responding Party’s knowledge, any uncured defaults on the part of the Requesting Party, or specifying such default if any are claimed: and (iv) other matters as may be reasonably requested by the Requesting Party.

POPEYES LOUISIANA KITCHEN | Yucca Valley, CA (San Bernardino County) | 7 PROPERTY INFORMATION POPEYES YUCCA VALLEY, CA

POPEYES LOUISIANA KITCHEN | Yucca Valley, CA (San Bernardino County) | 8 Representative Photo EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

• Location Maps • Site Plan Aerials

-- LOCATION MAPS --

JOHNSON VALLEY OHV RECREATION RIDGECREST AREA 247

BAKERSFIELD

247

BARSTOW 29 PALMS MARINE CORPS MILITARY BASE LANCASTER 247 62 VICTORVILLE 62 YUCCA VALLEY

HESPERIA VENTURA

SAN BERNARDINO LOS ANGELES RIVERSIDE 62

ANAHEIM PALM SPRINGS

LONG BEACH PALM DESERT IRVINE JOSHUA TREE NATIONAL PARK TEMECULA PALM SPRINGS

Pacific Ocean CARLSBAD PALM DESERT INDIO

SAN DIEGO

POPEYES LOUISIANA KITCHEN | Yucca Valley, CA (San Bernardino County) | 9 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps • Site Plan • Aerials

-- SITE PLAN --

DRIVE THRU DRIVE THRU

TWENTYNINE PALMS HIGHWAY

POPEYES LOUISIANA KITCHEN | Yucca Valley, CA (San Bernardino County) | 10 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Site Plan • Aerials •

-- OVERHEAD VIEW --

YUCCA VALLEY AIRPORT

TWENTYNINE PALMS HWY

SUNNYSLOPE DR

ACCESS

TWENTYNINE PALMS HWY (28,000 CPD)

POPEYES LOUISIANA KITCHEN | Yucca Valley, CA (San Bernardino County) | 11 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Site Plan • Aerials •

LANDERS -- LOOKING NORTH -- FLAMINGO HEIGHTS

247

PAXTON RD

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OLD WOMAN SPRINGS RD

YUCCA VALLEY AIRPORT BALSA AVE

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YUCCA VALLEY FIRE PROTECTION TWENTYNINE PALMS HWY (28,000 CPD)

BALSA AVE AIRWAY AVE 62

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POPEYES LOUISIANA KITCHEN | Yucca Valley, CA (San Bernardino County) | 12 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Site Plan • Aerials • TWENTYNINE -- LOOKING EAST -- 29 PALMS MARINE CORPS BASE PALMS

JOSHUA TREE FRIENDLY HILLS ELEMENTARY SCHOOL 62 JOSHUA TREE RETREAT CENTER LA CONTENTA BLACK ROCK MIDDLE SCHOOL HIGH SCHOOL TWENTYNINE PALMS HWY YUCCA VALLEY BUILDING & SAFETY

AVALON URGENT YUCCA TRAIL CARE CENTER AVALON AVE

PAXTON RD HANFORD AVE BALSA AVE

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POPEYES LOUISIANA KITCHEN | Yucca Valley, CA (San Bernardino County) | 13 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Site Plan • Aerials •

-- LOOKING SOUTH -- INDIO PALM SPRINGS

COPPER HILL HOMES

ONAGA ELEMENTARY SCHOOL

WARREN VISTA DR PALOMAR AVE

YUCCA TRAIL YUCCA TRAIL Representative Property

AIRWAY AVE AVALON AVE

HANFORD AVE BALSA AVE

SUNNYSLOPE DR 62

62 TWENTYNINE PALMS HWY (28,000 CPD) YUCCAAIRWAY VALLEY AVE FIRE PROTECTION

21ST CENTURY ONCOLOGY OF 62 SUNNYSLOPE DR CALIFORNIA TWENTYNINE PALMS HWY

YUCCA VALLEY AIRPORT

BALSA AVE

POPEYES LOUISIANA KITCHEN | Yucca Valley, CA (San Bernardino County) | 14 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Site Plan • Aerials •

SAN BERNARDINO -- LOOKING WEST --

DESERT HOT SPRINGS MORONGO VALLEY

BLUE SKIES COUNTRY CLUB

APACHE MOBILE GATES OF SPAIN HOME PARK 62 YUCCA VALLEY MOBILE ESTATES LA PAZ HOMES HIGH SCHOOL BREHM PARK FAMILY REC CTR YUCCA VALLEY LEBARON DUMOSA TOWN HALL APARTMENTS SENIOR VILLAGE CALVARY JOSHUA LN BAPTIST CHURCH

YUCCA TRAIL 247 OLD WOMAN SPRINGS RD 247 62 CAL-FIRE WARREN VISTA DR YUCCA VALLEY

WARREN VISTA DR

TWENTYNINE PALMS HWY (28,000 CPD)

YUCCA VALLEY YUCCA TRAIL AIRPORT

SUNNYSLOPE DR

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POPEYES LOUISIANA KITCHEN | Yucca Valley, CA (San Bernardino County) | 15 TENANT OVERVIEW POPEYES YUCCA VALLEY, CA

POPEYES LOUISIANA KITCHEN | Yucca Valley, CA (San Bernardino County) | 16 Representative Photo EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

• About Popeyes •

-- ABOUT POPEYES --

Popeyes is an American multinational chain of restaurants founded in 1972 in , Louisiana. Since 2008, its full brand name is Popeyes Louisiana Kitchen, Inc. and it was formerly named Popeyes Chicken & Biscuits and Popeyes Famous Fried Chicken & Biscuits. Popeyes is the second-largest “quick-service chicken restaurant group, measured by number of units”, after KFC. More than 2,600 Popeyes restaurants are in more than 40 states and the District of Columbia, , and 30 countries worldwide. About thirty locations are company-owned, the rest franchised. Popeyes distinguishes itself with a unique New Orleans style menu, serving chicken dishes in mild and spicy flavors and sides such as red beans and rice, Cajun fries, mashed potatoes with Cajun-style gravy, Cajun rice, macaroni & cheese, and . In addition to fried chicken, other entree items include a chicken-and-sausage jambalaya and po’ boy . Most combo meals come with a side order, , and a biscuit.. The chain’s passion for its Louisiana heritage and flavorful authentic food has allowed Popeyes to become one of the world’s largest quick service restaurant chicken concepts.

POPEYES CONSISTENTLY RANKS IN THE QSR “TOP FIFTY”

In the limited-service restaurant industry, success is rarely a given. Performance ebbs and flows. Trends come and go. New competitors gobble up market share one year and then fade into oblivion the next. To make it as one of the most successful companies in this industry, restaurants must run the gauntlet of challenges necessary to scaling a concept, from establishing a loyal customer base to forming committed stakeholder relationships, and from building an efficient supply chain to navigating potential threats to the business. Indeed, only those companies that have put in the time and sweat equity can lay claim to being the biggest and the best in a $234 billion industry. Popeyes has consistently ranked in the Top Fifty for the past decade, typically sitting at #20.

RESTAURANT BRANDS INTERNATIONAL On February 21, 2017, Restaurant Brands International announced a deal to buy Popeyes for US$1.8 billion. On March 27, 2017, the deal closed with RBI purchasing Popeyes at $79 per share via Orange, Inc, an indirect subsidiary of RBI. Restaurant Brands International Inc. (NYSE: QSR / TSX: QSR) is a Canadian corporation originally formed on August 25, 2014 to serve as the indirect holding company for and its consolidated subsidiaries and and its consolidated subsidiaries, and, since our acquisition of Popeyes, Popeyes and its consolidated subsidiaries. Restaurant Brands International is one of the world’s largest quick service restaurant (“QSR”) companies with more than $30 billion in system-wide sales and over 24,000 restaurants in more than 100 countries and U.S. territories as of December 31, 2017. Their Our three iconic brands are managed independently while benefiting from global scale and sharing of best practices. As of December 31, 2017, approximately 100% of total restaurants for each of our brands was franchised.

ABOUT THE OPERATOR The subject property is operated by Karas Foods, Inc., an experienced franchisee with 7 other ’s locations and 1 Broken Yolk Restaurant within Southern California. The lease provides an investor with a personal guaranty from the President of Karas Foods, Inc., Mr. Wahid Karas who has an approximate personal net worth of $5,000,000. The lease guarantor is required to provide the landlord with personal financials twice annually. Current financials can be obtained upon a signed confidentiality agreement.

POPEYES LOUISIANA KITCHEN | Yucca Valley, CA (San Bernardino County) | 17 AREA OVERVIEW POPEYES YUCCA VALLEY, CA

POPEYES LOUISIANA KITCHEN | Yucca Valley, CA (San Bernardino County) | 18 Representative Photo EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

• Yucca Valley Overview • San Bernardino County Overview Demographics

-- YUCCA VALLEY --

Yucca Valley is a town in San Bernardino County, California and has a population of approximately 22,000 residents. Bordered in the west by the San Bernardino Mountains and in the south by the Joshua Tree National Park, the Yucca Valley community is located in the Mojave Desert at roughly 3,300 feet above sea level, offering all the beauty of the low desert, with the seasonable benefits of being part of the high desert. and lies 27 miles north of Palm Springs, 62 miles south of Barstow, and 55 miles east of San Bernardino. Yucca Valley has two major means of highway access; State Route 62 (Twentynine Palms Highway) runs east-west and is the main thoroughfare through town and terminates at the south end at Interstate 10 and Parker Dam on the Arizona border at the east end. State Route 247 (Old Woman Springs Road) begins in Yucca Valley and extends north through Barstow and terminates at Interstate 15. GATEWAY TO JOSHUA TREE NATIONAL PARK, DOMINANT TOURIST DESTINATION • MINUTES FROM JOHNSON VALLEY OFF-ROAD RECREATION AREA Yucca Valley is the gateway to Joshua Tree National Park and the economic hub for the Morongo Basin. Joshua Tree National Park has become one of the most popular tourist destinations in the state and set a new attendance record again in 2017 with more than 2.8 million visitors - the fourth consecutive record-setting year. Joshua Tree National Park encompasses approximately 800,000 acres of desert land. Famous for its biodiversity, Joshua Tree is home to more than 800 different plant species. Hiking trails are by far the primary attraction at Joshua Tree, with popular hikes including the Lost Horse Mine, a historical mine located inside the National Park and Carey’s Castle, a series of abandoned caverns that were once inhabited by squatters who worked in the nearby mines. Joshua Tree is well known for its naturally dark night skies, which are far away from and largely free of the light pollution typical in the coastal urban areas. The park’s elevation and dry desert air, along with the relatively stable atmosphere in the region, often make for excellent astronomical seeing conditions. Yucca Valley is located minutes away from the Johnson Valley Off-Highway Vehicle (OHV) Recreation Area, a world-famous off-road vehicle area that offers outstanding trails for competitive off-highway motorcycle racing, enduro and trial events, and day play-riding. Most visitors tour the area in four-wheel drive vehicles. Sloping bajadas, narrow canyons, flat dry lakes, sand dunes, and twisting trails through low rocky mountains provide a variety of experiences for all levels of riders. Approximately 53,000 acres of Johnson Valley is a shared-use area with the Marine Corps Air Ground Combat Center (MGAGCC) located in Twentynine Palms, CA. Enthusiasts participate in a course known as “The Hammers”, a triangular off-road track at Bessemer Mine Road at the southern point of Soggy Lake. King of the Hammers, an off-road desert race, utilizes trails found in “The Hammers”. Expansion plans of the US Marine Corps AGCC Base plan to annex parts of the Off-Highway Area that threaten to permanently close access to “The Hammers”. PROXIMITY TO MARINE CORPS AIR GROUND COMBAT CENTER (MCAGCC) “29 PALMS” • THE LARGEST MILITARY TRAINING AREA IN THE NATION The Marine Corps Air Ground Combat Center (MCAGCC), also known as 29 Palms, is the Marine Corps’ largest base. It is located adjacent to the city of Twentynine Palms in southern San Bernardino County, California, just North of Joshua Tree National Park, but in the middle of the Mojave Desert. The 29 Palms base is currently home to the largest military training area in the nation (and the largest US base in the world), and consequently, the largest training program. The program known as Mojave Viper became the model of pre-Operation Iraqi Freedom deployment training with live fire exercises, artillery, tank, and close air support training. The population of 29 Palms is the largest and includes 12,500 active duty, 24,000 family members, and another 21,000 DoD/Contractors. Because Southern California is a popular retirement location, 29 Palms has about 1,200 retirees in the area.

POPEYES LOUISIANA KITCHEN | Yucca Valley, CA (San Bernardino County) | 19 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Yucca Valley Overview • San Bernardino County Overview • Demographics

-- SAN BERNARDINO COUNTY --

Located at the heart of Southern California, an economy CENTRAL LOCATION • HOME OF ONTARIO INTERNATIONAL AIRPORT • WESTERN of 22 million people, the County of San Bernardino is the REGION HUB FOR UNITED PARCEL SERVICE largest county in the United States. Its vast borders stretch from the greater Los Angeles area to the Nevada border The County has approximately 10,000 miles of roadways, including 6 Federal Interstate and the Colorado River encompassing a total area of Highways, 2 Federal U.S. Highways, and 18 State Highways. The highway system includes 20,160 square miles. two of the nation’s most important interstate highways, Interstate 10 and Interstate 15, which link Southern California to the Western U.S. and national business centers across the Located just east of Los Angeles, the County of San Bernardino is a haven for travelers and country. Locally, Highways 210, 60 and Interstate 40 also connect the Inland Empire with the residents alike who flock to the natural beauty of Big Bear Lake, Palm Springs, Joshua Tree region and western U.S. National Park, and the Mojave Desert, which is the leading recreational area for Southern California. One of its transportation assets is the Ontario International Airport (ONT), a medium-hub, full-service airport with commercial jet service to major U.S. cities and through service to many international destinations. ONT is located in the City of Ontario, approximately 35 miles WORKFORCE ADVANTAGES: LOWER LABOR COSTS & LOWER COST OF LIVING east of downtown Los Angeles in the center of Southern California. It is the second largest Comprised of 24 cities, San Bernardino County encompasses more than two million residents commercial airport in Southern California after the Los Angeles International Airport (LAX). with a workforce exceeding 900,000. Its assets include an innovation corridor of close to two Situated near the intersection of two major interstate highways, ONT is also the center of dozen colleges and universities supporting a strong, diverse workforce. a rapidly developing freight movement system that includes the airport, two railroads, four San Bernardino County labor costs tend to be lower than those in Los Angeles, Orange and major freeways, and an expanding network of freight forwarders. San Diego counties. Many of the residents who commute to the coastal counties for work LA/Ontario is the United Parcel Service’s (UPS) Western Region hub for both air and trucking are willing to accept lower pay for jobs closer to home. Forty-seven percent of local residents operations within a 13-state region. In addition to serving intra-regional traffic, the hub links would accept at least five percent lower pay to avoid commuting to Orange County, while to UPS’s global hub in Louisville and serves as an international gateway for UPS’ cargo flights one percent would accept 15 percent less to work locally. to and from China. Its residents also benefit because of our lower cost of California living. Many products and services as well as the cost of housing are lower in the County. For this reason, local residents enjoy higher net disposable incomes and higher standards of living than what the income data indicate. For instance, the median home resale price in San Bernardino County is about one-fourth of that in Orange County and one-half of that in Los Angeles County (April 2013 data).

POPEYES LOUISIANA KITCHEN | Yucca Valley, CA (San Bernardino County) | 20 SUMMARY PROFILE 2000-2010 Census, 2018 Estimates with 2023 Projections Calculated using Weighted Block Centroid from Block Groups

Lat/Lon: 34.1272/-116.4020 RS1 57858 Twentynine Palms Highway 1 mi radius 3 mi radius 5 mi radius SYuUccMa MVaAllEXECUTIVEReyY, C PAR 92O2F84ILE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW 2000-20120180 Ce Estimatednsus, 2018 Population Estimates with 2023 Projections 3,443 19,576 28,341 Calculated using Weighted Block Centroid from BlockYucca Groups Valley Overview San Bernardino County Overview • Demographics • 2023 Projected Population 3,621 20,648 30,078 N O

I 2010 Census Population 3,252 18,482 26,911 T

-- DEMOGRAPHICSLat/LA on: 200034.12 Census7 --2/-116 .Population4020 2,618 14,986 21,974 L RS1 U

P Projected Annual Growth 2018 to 2023 1.0% 1.1% 1.2% 578O 58 Twentynine Palms Highway P Historical Annual Growth 2000 to 2018 1 mi rad1.7%ius 3 mi rad 1.7%ius 5 mi rad1.6%ius Yucca Valley, CA 92284 1 Mile 3 Miles 5 Miles 2018 Median Age 35.7 39.9 40.5 1.3 MILLION POPULATION - 50 MILES 2018 Estimated Population 3,443 19,576 28,341 EXCELLENT SURROUNDING DEMOGRAPHICS 2018 Estimated Households 1,348 7,805 11,483 2023 Projected Population 3,621 20,648 30,078 Over 1,338,000 people live within a 50-mile S N

D 2023 Projected Households 1,418 8,241 12,200 radius of the subject property. O L

I 2010 Census Population 3,252 18,482 26,911 O T 2010 Census Households 1,260 7,298 10,793 A H 2000 Census Population 2,618 14,986 21,974 L E U

S 2000 Census Households 1,050 6,124 9,016 HOUSEHOLDS - 50 MILES P 463,000 U Projected Annual Growth 2018 to 2023 1.0% 1.1% 1.2% O O

P Projected Annual Growth 2018 to 2023 1.0% 1.1% 1.2% H DENSE RESIDENTIAL IN-FILL LOCATION

POPULATION Historical Annual Growth 2000 to 2018 1.7% 1.7% 1.6% Historical Annual Growth 2000 to 2018 1.6% 1.5% 1.5% There are over 463,000 households within a 50- 2018 Median Age 35.7 39.9 40.5 mile radius of the subject property. 2018 Estimated White 77.6% 78.2% 79.0% 2018 Estimated Households 1,348 7,805 11,483 2018 Estimated Black or African American 4.8% 4.5% 4.2% D S Y N

T AVG HH INCOME - 5 MILES D 2023 Projected Households 1,418 8,241 12,200 $75,148 I

L 2018 Estimated Asian or Pacific Islander 4.0% 3.8% 3.6% A C I O E 2010 Census Households 1,260 7,298 10,793 N H C 2018 Estimated American Indian or Native Alaskan 1.3% 1.2% 1.3% H E A T

S 2000 Census Households 1,050 6,124 9,016 R

E 2018 Estimated Other Races 12.3% 12.2% 12.0% U

O Projected Annual Growth 2018 to 2023 1.0% 1.1% 1.2% H 2018 Estimated Hispanic 25.9% 24.3% 23.8% HOUSEHOLDS Historical Annual Growth 2000 to 2018 1.6% 1.5% 1.5%

E 2018 Estimated Average Household Income $46,402 $60,107 $60,299 M 2018 Estimated White 77.6% 78.2% 79.0% O 2018 Estimated Median Household Income $42,667 $47,450 $47,126 C

N 2018 Estimated Black or African American 4.8% 4.5% 4.2% D I Y 2018 Estimated Per Capita Income $18,192 $24,075 $24,535 N T I 2018 Estimated Asian or Pacific Islander 4.0% 3.8% 3.6% A C I E

N 2018 Estimated Elementary (Grade Level 0 to 8) 3.3% 3.9% 4.2% C 2018 Estimated American Indian or Native Alaskan 1.3% 1.2% 1.3% H A

T 2018 Estimated Some High School (Grade Level 9 to 11) 8.0% 10.2% 9.7% R

E 2018 Estimated Other Races 12.3% 12.2% 12.0% N ) This report was produced using data from private and government sources deemed to be reliable. The information herein is provided without representation or warranty. representation herein is provided without information The be reliable. sources deemed to and government private from was produced using data report This + O

I 2018 Estimated High School Graduate 40.6% 31.4% 30.8% 5 T

RACE & ETHNICITYRACE 2018 Estimated Hispanic 25.9% 24.3% 23.8% 2 A

E 2018 Estimated Some College 25.7% 29.7% 29.2% C G U E

A 2018 Estimated Average Household Income $46,402 $60,107 $60,299

D 2018 Estimated Associates Degree Only 9.6% 10.9% 9.7% ( M E O 2018 Estimated BachelorsMedian Household Degree Only Income $42,6678.0% $47,450 8.5% $47,12610.2% C N I 2018 Estimated GraduatePer Capita Degree Income $18,1924.8% $24,075 5.4% $24,5356.1% INCOME

S 2018 Estimated TotalElementary Businesses (Grade Level 0 to 8) 3.3%277 3.9% 838 1,0154.2% S

E 2018 Estimated TotalSome Employees High School (Grade Level 9 to 11) 2,2248.0% 10.2% 7,039 8,1099.7% N N ) I This report was produced using data from private and government sources deemed to be reliable. The information herein is provided without representation or warranty. representation herein is provided without information The be reliable. sources deemed to and government private from was produced using data report This + O S I 2018 Estimated High School Graduate 40.6% 31.4% 30.8% 5 2018 Estimated Employee Population per Business 8.0 8.4 8.0 U T 2 B A BUSINESS E 2018 Estimated Some College 25.7% 29.7% 29.2%

C 2018 Estimated Residential Population per Business 12.4 23.3 27.9 G U A

D 2018 Estimated Associates Degree Only 9.6% 10.9% 9.7% ( E 2018 Estimated Bachelors Degree Only 8.0% 8.5% 10.2% ©2018, Sites USA, Chandler, Arizona, 480-491-1112 page 1 of 1 Demographic Source: Applied Geographic Solutions 04/2018, TIGER Geography 2018 Estimated Graduate Degree 4.8% 5.4% 6.1%

S 2018 Estimated Total Businesses 277 838 1,015 POPEYES LOUISIANA KITCHEN | Yucca Valley, CA (San Bernardino County) | 21 S

E 2018 Estimated Total Employees 2,224 7,039 8,109 N I

S 2018 Estimated Employee Population per Business 8.0 8.4 8.0 U B 2018 Estimated Residential Population per Business 12.4 23.3 27.9

©2018, Sites USA, Chandler, Arizona, 480-491-1112 page 1 of 1 Demographic Source: Applied Geographic Solutions 04/2018, TIGER Geography EXCLUSIVELY REPRESENTED BY

Color Scheme

RGB R:145 / G:0 / B:40 RYAN BARR | Principal CMYKRYANC:0 / M:100 / Y:65 / K:47BENNETT | Principal

RGB R:119 / G:120 / B:123 760.448.2446 CMYK C:0 / M:0 / Y:0 / K65 760.448.2449 [email protected] [email protected] GOTHAM/ BLACK CA DRE Lic#01338994 GOTHAMCA/ MEDIUM DRE Lic#01826517 GOTHAM/ LIGHT

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The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Lee & Associates has not and will not verify any of this information, nor has Lee & Associates conducted any investigation regarding these matters. Lee & Associates makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of an investment property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Lee & Associates expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of an investment property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any investment property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly- acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

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