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EXCLUSIVE NET - LEASE OFFERING

OFFERING MEMORANDUM 4603 N. Kickapoo Street, Shawnee, OK 74804 Confidentiality and Disclaimer

Marcus & Millichap hereby advises all prospective purchasers of properties, including newly-constructed facilities or newly- income or expenses for the subject property, the future projected Net Leased property as follows: acquired locations, may be set based on a tenant’s projected financial performance of the property, the size and square sales with little or no record of actual performance, or footage of the property and improvements, the presence or The information contained in this Marketing Brochure has been comparable rents for the area. Returns are not guaranteed; the absence of contaminating substances, PCB’s or asbestos, the obtained from sources we believe to be reliable. However, tenant and any guarantors may fail to pay the lease rent or compliance with State and Federal regulations, the physical Marcus & Millichap has not and will not verify any of this property taxes, or may fail to comply with other material terms of condition of the improvements thereon, or the financial information, nor has Marcus & Millichap conducted any the lease; cash flow may be interrupted in part or in whole due to condition or business prospects of any tenant, or any tenant’s investigation regarding these matters. Marcus & Millichap makes market, economic, environmental or other conditions. Regardless plans or intentions to continue its occupancy of the subject no guarantee, warranty or representation whatsoever about the of tenant history and lease guarantees, Buyer is responsible for property. The information contained in this Marketing Brochure accuracy or completeness of any information provided. conducting his/her own investigation of all matters affecting the has been obtained from sources we believe to be reliable; intrinsic value of the property and the value of any long-term however, Marcus & Millichap has not verified, and will not verify, As the Buyer of a net leased property, it is the Buyer’s lease, including the likelihood of locating a replacement tenant if any of the information contained herein, nor has Marcus & responsibility to independently confirm the accuracy and the current tenant should default or abandon the property, and Millichap conducted any investigation regarding these matters completeness of all material information before completing any the lease terms that Buyer may be able to negotiate with a and makes no warranty or representation whatsoever regarding purchase. This Marketing Brochure is not a substitute for your potential replacement tenant considering the location of the the accuracy or completeness of the information provided. All thorough due diligence investigation of this investment property, and Buyer’s legal ability to make alternate use of the potential buyers must take appropriate measures to verify all of opportunity. Marcus & Millichap expressly denies any obligation property. the information set forth herein. to conduct a due diligence examination of this Property for Buyer. By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it NON-ENDORSEMENT NOTICE Any projections, opinions, assumptions or estimates used in this harmless from any kind of claim, cost, expense, or liability arising Marketing Brochure are for example only and do not represent out of your investigation and/or purchase of this net leased Marcus & Millichap Real Estate Investment Services, Inc. the current or future performance of this property. The value of a property. (“M&M”) is not affiliated with, sponsored by, or endorsed by any net leased property to you depends on factors that should be commercial tenant or lessee identified in this marketing package. evaluated by you and your tax, financial and legal advisors. CONFIDENTIALITY AND DISCLAIMER The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or Buyer and Buyer’s tax, financial, legal, and construction advisors The information contained in the following Marketing Brochure is endorsement by, said corporation of M&M, its affiliates or should conduct a careful, independent investigation of any net proprietary and strictly confidential. It is intended to be reviewed subsidiaries, or any agent, product, service, or commercial listing leased property to determine to your satisfaction with the only by the party receiving it from Marcus & Millichap and should of M&M, and is solely included for the purpose of providing suitability of the property for your needs. not be made available to any other person or entity without the tenant lessee information about this listing to prospective written consent of Marcus & Millichap. This Marketing Brochure customers. Like all real estate investments, this investment carries significant has been prepared to provide summary, unverified information risks. Buyer and Buyer’s legal and financial advisors must request to prospective purchasers, and to establish only a preliminary ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE and carefully review all legal and financial documents related to level of interest in the subject property. The information CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE the property and tenant. While the tenant’s past performance at contained herein is not a substitute for a thorough due diligence DETAILS. Z0332906. this or other locations is an important consideration, it is not a investigation. Marcus & Millichap has not made any investigation, guarantee of future success. Similarly, the lease rate for some and makes no warranty or representation, with respect to the

4603 N Kickapoo Street, Shawnee, OK 74804 Representative Photo

Table of Contents Investment Highlights 4 Financial Analysis 5 Concept Overview 6-7 Surrounding Area 8 Location Overview 9 Local Map 10 Regional Map 11 Demographics / Market Overview 12-13 Investment Highlights PRICE: $2,406,548 | CAP: 6.75% | RENT: $162,442

Optimal Lease Structure ✓ Original 15-Year Absolute Triple Net Lease With 4.7 Years Remaining ✓ Attractive Rental Increases of 10 Percent Every Five Years ✓ Tenant Renewal Options: Two Periods of Five Years Compelling Location Fundamentals ✓ Dense Retail Corridor | Walmart, Walgreens, CVS Pharmacy, Lowe’s, Staples, TJ-Maxx, Hobby Lobby, Harbor Freight Tools, O’Reilly Auto Parts, McDonald’s, Starbucks & More ✓ Ease of Access | Located within Direct Proximity to Interstate-40 | 26,000 Vehicles Per Day ✓ Numerous Hospitality Accommodation Sites in Immediate Area | The Holiday Inn, Comfort Inn & Suites, Quality Inn, La Quinta Inn, Super 8 & Hampton Inn ✓ Located Less Than 4-Miles from SSM – Saint Anthony Hospital Shawnee | 77-Bed Surgical & Medical Facility About The Tenant ✓ Founded in 1989, McAlister’s Deli is a fast casual restaurant chain known for their sandwiches, spuds, soups, salads, desserts and McAlister’s Famous Sweet Tea. Representative Photo ✓ In addition to dine-in and take-out service, they also offer catering with a selection of sandwich trays, box lunches, desserts, a hot spud bar and more. With numerous industry Since 1982, The Saxton Group has developed & operated over 125 restaurants throughout the mid-west. ✓ The Saxton Group operates 75+ McAlister Deli locations across Texas, , Missouri, Kansas, Iowa & Nebraska. ✓ accolades, the McAlister’s brand has over 400 restaurants in 26 states. ✓ The Mississippi-based deli specializes in local and regional American favorites, from The New Yorker with its corned beef, pastrami, and Swiss on rye to the West Coast Bánh Mì, McAlister's take on the Vietnamese classic, not to mention the chain's famous sweet tea. ✓ Using proprietary data collected by Restaurant Business and its sister research firm Technomic from 2016, Business Insider looked at nearly 100 of the largest U.S. chains and rated them on three criteria: financial performance, customer satisfaction and overall value. Out of the 25 brands that were ranked, McAlister’s Deli came in at No. 17, right in front of Schlotzsky’s.

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McAlister’s Deli – Shawnee, OK 4 Financial Analysis PRICE: $2,406,548 | CAP: 6.75% | RENT: $162,442

PROPERTY DESCRIPTION RENT SCHEDULE Property McAlister's Deli Lease Year(s) Annual Rent Monthly Rent Rent Escalation (%) Property Address 4603 N Kickapoo Street Current $162,442 $13,537 10.00% City, State, ZIP Shawnee, OK 74804 10/13/2019-10/12/2020 $162,442 $13,537 - Year Built / Renovated 2008 10/13/2020-10/12/2021 $162,442 $13,537 - Building Size 4,148 10/13/2021-10/12/2022 $162,442 $13,537 - Lot Size +/- 1.10 Acres 10/13/2022-10/12/2023 $162,442 $13,537 - Type of Ownership Fee Simple THE OFFERING Purchase Price $2,406,548 CAP Rate 6.75% Annual Rent $162,442 Price / SF $580 Rent / SF $39.16 LEASE SUMMARY Property Type Net-Leased Restaurant Tenant/Guarantor Franchisee Original Lease Term 15 Years INVESTMENT SUMMARY Lease Commencement October 13, 2008 Marcus & Millichap is pleased to present the exclusive listing for a McAlister’s Lease Expiration October 12, 2023 Deli located at 4603 N Kickapoo St in Shawnee, Oklahoma. The site constructed Lease Term Remaining 4.7 Years in 2008, consists of roughly 4,148 rentable square feet of building space on an estimated 1.10 acre parcel of land. Lease Type Triple-Net (NNN) Lease Roof & Structure Tenant Responsible McAlister’s Deli is subject to a fifteen-year triple-net lease, which commenced Options to Renew Two (2), Five (5)-Year Options on October 13, 2008. The annual rent is $162,442. There are two, five-year Rental Increases 10% Every 5-Years tenant renewal options.

McAlister’s Deli – Shawnee, OK 5 Overview Founded in 1989, McAlister’s Deli is a fast casual restaurant chain known for their sandwiches, spuds, soups, salads, desserts and McAlister’s Famous Sweet Tea. In addition to dine-in and take-out service, they also offer catering with a selection of sandwich trays, box lunches, desserts, a hot spud bar and more. With numerous industry accolades, the McAlister’s brand has over 350 restaurants in 26 states. McAlister’s Franchise News & Awards

Summer 2017 Ranked #23 on Franchise 500 List 2017 Business Insider’s Best Food Chains List 2016 Gold Rating Sales for 12% Increase June 2015 NRN Top 100 List May 2015 Fast Casual Top 100 Movers & Shakers October 2014 Top 200 Franchise Systems - McAlister's Ranked #143 September 2014 Top Food Franchises - Franchise Business Review Summer 2014 Restaurant Development & Design August 2014 QSR Top 50

Recognitions

Techonomic recognized McAlister’s twice in its Chain Restaurant Consumers’ Choice Awards — in 2014 as the top kid-friendly fast casual chain and in 2013 as the top fast casual chain for food and beverage. In 2014, Nation’s Restaurant News named McAlister’s the top limited-service sandwich chain in its Consumer Picks Survey. Also in 2014, QSR Magazine recognized the brand as one of the “Best Franchise Deals” and named McAlister’s to its QSR 50 list. FastCasual.com also recognized the brand on its “Top 100 Movers and Shakers” list of 2014, and Franchise Business Review named McAlister’s one of 2014′s “Top Franchises” in the Food and Beverage category based on franchisee satisfaction.

McAlister’s Deli – Shawnee, OK 6 THE SAXTON GROUP, LLC

OUR HISTORY The Saxton Group. Founded in 1982 with just two Mazzio’s Pizza restaurants, The Saxton Group put its people at its center and was able to grow those two Mazzio’s locations into 50. In 2004, the Mazzio’s Pizza stores were sold, allowing The Saxton Group to fully focus on one objective: bringing the beloved McAlister’s Deli brand to Texas.

Once The Saxton Group opened its first store in Longview, Texas the path of introducing the McAlister’s brand to Texans didn’t just grow, it took off. Today, The Saxton Group operates 75+ McAlister’s Deli locations across Texas, Oklahoma, Missouri, Kansas, Iowa and Nebraska. Over 25 of those locations are in the DFW metroplex.

TODAY & TOMORROW In 2018, the company plans to open eight new restaurants. In the next two years, The Saxton Group will lead the McAlister’s Deli brand into a new territory and will introduce the brand to Nebraskans and Iowans for the first time.

The Saxton Group brings a hospitable and people-focused approach to each of its McAlister’s Deli locations; this outlook has propelled the company to one of the largest and most experienced multi-unit restaurant franchisees in the country.

https://www.saxtongroup.com/about McAlister’s Deli – Shawnee, OK 7 Surrounding Area Property Address: 4603 N Kickapoo Street, Shawnee, OK 74804

Walgreens KICKAPOO STREET KICKAPOO

McAlister’s Deli – Shawnee, OK 8 Location Overview Property Address: 4603 N Kickapoo Street, Shawnee, OK 74804 This McAlister’s Deli is located along North Kickapoo Street in Shawnee, Oklahoma. The subject property is located southeast of downtown in Shawnee’s main retail corridor with close proximity to Interstate-40.

The property is well positioned in a dense retail corridor with many national and local tenants, shopping centers and auto retailers. Major national tenants within the immediate area include: Walmart, Walgreens, CVS Pharmacy, Lowe’s, Staples, TJ-Maxx, Hobby Lobby, Harbor Freight Tools, O’Reilly Auto Parts, McDonald’s, Starbucks, as well as many more quick service restaurants. The subject property also benefits from its direct proximity to Interstate- 40 and central location within the retail corridors main lodging center. This McAlister’s Deli centralized location is surrounded by numerous hospitality accommodations including: The Holiday Inn, Comfort Inn & Suites, Quality Inn, La Quinta Inn, Super 8, Hampton Inn and more. SSM Health – St. Anthony Shawnee Hospital, a 77-bed surgical and medical facility, is located less than four-miles southwest of the subject property. ADTC: 26,000

The subject property is situated on North Kickapoo Street, which has average daily traffic counts exceeding 14,700 vehicles. Additionally, North Kickapoo Street intersects and serves as an access road to Interstate-40, which brings an additional 26,000 vehicles per day into the immediate surrounding area. There are more than 35,000 individuals residing within a five- mile radius of the subject property and more than 56,500 individuals within a ten-mile radius of the property.

Shawnee is a city in Pottawatomie County, Oklahoma. The city is part of the Oklahoma City- Shawnee Combined Statistical Area; it is also the county seat of Pottawatomie County and ADTC: 14,700 the principal city of the Shawnee Micropolitan Statistical Area. With access to , Shawnee is about 45 minutes east of the attractions in downtown Oklahoma City. To the east and northeast, Shawnee is 112 miles from the McClellan-Kerr Arkansas River Navigation System which provides shipping barge access to the Gulf of Mexico. Downtown Shawnee is an excellent example of many Main Street communities that emerged in the late 19th century as part of the westward movement. Choosing not to organize its activity around a central square, as did many towns in New England, the South, and upper-Midwest, Shawnee represents a distinctly western model of urban development. Depending on railroad lines for its economic health, Shawnee's Main Street became the focal point for commercial, manufacturing, and entertainment activity beginning in 1895, four years after the region was opened for European-American settlement when authorities staged a land run. The railroad industry led the early strength of the economy. The Santa Fe Train Depot (still extant), with its unique architecture, serves as a visible reminder of the city's dependence on the train. During the early 20th century, the Rock Island Railroad and the Missouri-Kansas-Texas Railroad both had depots in the city. Shawnee's major employer was the Rock Island Railroad, which had located its main southwestern repair shops in the city in 1896. McAlister’s Deli – Shawnee, OK 9 Local Map Property Address: 4603 N Kickapoo Street, Shawnee, OK 74804

Will Rogers World Airport

McAlister’s Deli – Shawnee, OK 10 Regional Map Property Address: 4603 N Kickapoo Street, Shawnee, OK 74804

OKLAHOMA

McAlister’s Deli – Shawnee, OK 11 Demographics Property Address: 4603 N Kickapoo Street, Shawnee, OK 74804 3 Miles 5 Miles 10 Miles 10 Miles POPULATION 2022 Projection 22,235 35,286 57,495 2017 Estimate 22,050 35,089 56,571 2010 Census 21,134 33,851 54,982 2000 Census 20,316 32,718 52,095 5 Miles INCOME Average $63,332 $58,213 $60,591 Median $48,352 $44,113 $46,778 3 Miles Per Capita $25,469 $23,192 $23,689 HOUSEHOLDS 2022 Projection 8,784 13,912 22,396 2017 Estimate 8,600 13,656 21,748 2010 Census 8,136 13,038 20,968 2000 Census 7,833 12,717 19,961

HOUSING 2017 $108,982 $101,780 $106,678

EMPLOYMENT 2017 Daytime Population 28,688 42,218 61,842 2017 Unemployment 4.59% 5.07% 4.68% 2017 Median Time Traveled 21 Mins 21 Mins 23 Mins

RACE & ETHNICITY White 75.71% 71.92% 74.08% Native American 0.04% 0.06% 0.08% African American 3.41% 4.28% 3.28% Asian/Pacific Islander 1.27% 1.07% 0.83%

McAlister’s Deli – Shawnee, OK 12 Market Overview City: Shawnee | County: Pottawatomie | State: Oklahoma Oklahoma City is the capital and largest city of the U.S. state of Oklahoma. Lying in the Great Plains region, Oklahoma City has one of Oklahoma City, Oklahoma the world's largest livestock markets. Oil, natural gas, petroleum products and related industries are the largest sector of the local economy. The city is in the middle of an active oil field and oil derricks dot the capitol grounds. The federal government employs large numbers of workers at Tinker Air Force Base and the United States Department of Transportation's Mike Monroney Aeronautical Center. Oklahoma City is on the I-35 Corridor, which is one of the primary travel corridors south into neighboring Texas and Mexico and north towards Wichita and Kansas City. Located in the state's Frontier Country region, the city's northeast section lies in an ecological region known as the Cross Timbers. The economy of Oklahoma City, once just a regional power center of government and energy exploration, has since diversified to include the sectors of information technology, services, health services, and administration. The city is headquarters to two Fortune 500 companies: Chesapeake Energy and Devon Energy, as well as being home to Love's Travel Stops & Country Stores, which is ranked thirteenth on Forbes' list of private companies. Other major corporations with a large in the city of Oklahoma City include Dell, The Hertz Corporation, Farmers Insurance Group, Coca-Cola Bottling Company, Cox Communications, The Boeing Company, Johnson Controls, MidFirst Bank, Rose State College, and . Major Employers Employer Estimated # of Employees Wolverine Tube Inc 1,100 Unity Health Center 540 Mobil Chemical-Films Dept 500 Hydraulics Operations Plant 400 United States Dept of Navy 350 Walmart 300 Unity Health Center-South 260 City Clerk Office 256 Medical Properties Co 230 Finley & Cook PLLC 200 Tdk Ferrites Corporation 200 Stanthony Physicians Shawnee 160

McAlister’s Deli – Shawnee, OK 13 EXCLUSIVE NET LEASE OFFERING

Mark McCoy Fort Worth Office 300 Throckmorton Street, Suite 1500 Fort Worth, TX 76102 4603 N Kickapoo Street, Shawnee, OK 74804 Tel: 817-932-6148 License: 149994