MOD 600 21ST STREET, LEWISTON, IDAHO

OFFERING MEMORANDUM JIMMY BURGER JOHN’S KING MCDONALD’S

4,000 STUDENTS Walgreens

IDAHO

WASHINGTON

MCDONALD’S LEWISTON-NEZ PERCE COUNTY REGIONAL AIPORT

The information in this package has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus Millichap. ACT ID ZAA0070307

MARCUS & MILLICHAP 2 // MOD Pizza Executive Summary 600 21st Street, Lewiston, ID 83501

FINANCIAL SUMMARY ANNUALIZED OPERATING DATA Price $2,272,000 Lease Years Annual Rent Cap Rate Down Payment 100% $2,272,000 1-5 $124,906 5.50% Cap Rate 5.50% 6-10 $137,396 6.05% Building SF 3,287 SF Net Cash Flow 5.50% $124,906 Options Annual Rent Cap Rate Year Built 2001 / 2017 Option 1 $151,136 6.65% Land/Lot Size 0.87 Acres Option 2 $166,249 7.32% LEASE SUMMARY Base Rent $124,906 Lease Type Double-Net (NN) Lease Tenant MOD Super Fast, LLC Net Operating Income $124,906

Guarantor Corporate Total Return 5.50% $124,906 Roof & Structure Landlord Responsible* Lease Commencement Date December, 1 2017 Lease Expiration Date December 31, 2027 Lease Term Remaining 8 Years Rental Increases 10% Every 5 Years Renewal Options 2, 5 Year Options

*If Landlord replaces the roof, the cost of replacement shall be amortized over the expected useful life of the roof, and during each Lease Year of the Term, an amount equal to one year’s amortization as so determined may be included in Operating Expenses.

MARCUS & MILLICHAP 3 // MOD Pizza Walgreens

BURGER KING

JIMMY JOHN’S MCDONALD’S

24,500 CPD 21ST STREET

8,400 CPD MAIN STREET

MARCUS & MILLICHAP 4 // MOD Pizza 29,000 CPD MAIN STREET

5,200 CPD IDAHO STREET

24,500 CPD 21ST STREET

MARCUS & MILLICHAP 5 // MOD Pizza Property Description DEMOGRAPHICS 1-mile 3-miles 5-miles

Population

2023 Projection 6,449 32,897 53,552 2018 Estimate 6,426 32,654 52,637 Growth 2018 – 2023 0.36% 0.74% 1.74%

Households

2023 Projection 2,792 14,448 23,017 2018 Estimate 2,758 14,149 22,334 Growth 2018 – 2023 1.23% 2.11% 3.06%

Income

2018 Est. Average $55,019 $56,388 $59,896 INVESTMENT HIGHLIGHTS Household Income 2018 Est. Median »» 8 Years Remaining on Lease Term with Corporate Guarantee $41,496 $41,351 $46,001 Household Income »» 10% Rental Increases Every 5 Years 2018 Est. Per $23,919 $24,960 $25,785 »» High Performing Location Capita Income »» 52,637 Residents within a 5-Mile Radius - Growing Lewiston Trade Area »» Excellent Visibility Along 21st Street (24,500 Cars/Day), the Main Thoroughfare in Lewiston

»» MOD Pizza is One of the Fastest Growing Brands in America »» Surrounded by Major National Retailers - McDonald’s, Arby’s, Albertsons, , Jimmy John’s, and More

»» 5 Minutes from Lewis-Clark State College (4,000 Students) »» Down the Road from Lewiston’s Primary Retail Corridor - Tenants Include The Home Depot, Petco, Sportsman’s Warehouse, WinCo Foods, and More

MARCUS & MILLICHAP 6 // MOD Pizza MARCUS & MILLICHAP 7 // MOD Pizza Tenant Overview

MOD Pizza Private Bellevue, 460+ modpizza.com

Company Company Type Headquarters Locations Website

MOD Pizza was established in 2008 in , Washington by co-founders Scott Today, MOD Pizza has over 460 locations in 28 U.S. states, the United Kingdom, and Ally Svenson. The Svensons previously founded Seattle Coffee Company, a and Canada. The company plans to double the number of locations and open successful UK-based coffee company that sold to in 1998. Afterwards, another 500 stores within the next five years. In 2018, MOD Pizza had $390.7 Scott stayed on as President of Starbucks Europe. MOD is the original superfast million in sales, a 44.7% growth in sales year over year.

pizza experience - a pioneering fast-casual concept featuring artisan-style In 2015, MOD Pizza raised $40 million in new funding for a total of $70 million and salads, individually sized, made on demand, and ready in minutes. in investment capital to fund an aggressive national growth strategy, and an Customers have the ability to choose from over 30 toppings - the price stays the additional $160 million in 2019. MOD’s growth is also accelerated by the addition same no matter what. of several franchise partnerships.

MARCUS & MILLICHAP 8 // MOD Pizza Location Overview 1 Mile to Lewis-Clark State College

3 Miles to Lewiston-Nez Perce County Regional Airport

31 Miles to Washington State University

104 Miles to Spokane, Washington

Lewiston is the second largest city in northern Idaho, behind Coeur d’Alene, and transportation, retail, health care, wholesale and professional services, and is the ninth largest in the state. Lewiston is located at the confluence of the Snake entertainment center. In 2017, the Lewiston, ID-Clarkston, WA metro had a River and Clearwater River, thirty miles southeast of the Lower Granite Dam. The gross metropolitan product of $2.5 billion. Lewiston is home to Lewis-Clark State city is reachable by ocean-going vessels and the Port of Lewiston is the farthest College, a public undergraduate college with approximately 5,000 students.

inland port east of the West Coast and Idaho’s only seaport. Lewiston is also home The Lewiston labor force has a great reputation for its work ethic. The Lewiston to Lewis and Clark State College. The college has an annual enrollment of 4,000 MSA is made up of Nez Perce County and Asotin County (whose largest city is and offers more than 83 undergraduate degrees. Lewiston’s sister city, Clarkston) in Washington. They have a combined labor force The city’s main industries are agriculture, paper and timber products, and light of 31,600. As well as drawing workers from the two counties, the Lewiston labor manufacturing with a focus on ammunition, small firearms and boats. As the market also draws workers from Clearwater, Latah, Lewis, and Idaho Counties, metropolitan hub of the Lewis-Clark Valley, Lewiston is the primary regional which have an additional labor force of 26,600.

MARCUS & MILLICHAP 9 // MOD Pizza [ exclusively listed by ]

Paul Ryan Broker of Record (208) 401.9321 License #: DB39666

Offices Nationwide www.marcusmillichap.com

NET LEASED DISCLAIMER CONFIDENTIALITY AGREEMENT Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be By accepting this Marketing Brochure, you agree to treat the information contained herein regarding the lease terms as reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or confidential and proprietary and to only use such information to evaluate a potential purchase of this net leased property. entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any property at this time, please return this offering memorandum to Marcus & Millichap. investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a the future projected financial performance of the property, the size and square footage of the property and improvements, due diligence examination of this Property for Buyer. the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in represent the current or future performance of this property. The value of a net leased property to you depends on factors this offering memorandum has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not that should be evaluated by you and your tax, financial and legal advisors. verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation the information provided. All potential buyers must take appropriate measures to verify all of the information set forth of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property. 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 ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, DETAILS. 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.