Jack in the Box 745 Us Hwy 259 N, Kilgore, Tx 75662 Offering Memorandum Confidentiality & Disclaimer Statement

JACK IN THE BOX 745 US HWY 259 N, KILGORE, TX 75662 OFFERING MEMORANDUM CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offering Memorandum contains select information pertaining to the business and affairs of Jack in the Box located at 745 Us Hwy 259 N, Kilgore, TX 75662 (“Property”). It has been prepared by Matthews Retail Group . 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 Retail Group . 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 Retail Group 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 Retail Group 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.

Matthews Retail Group Table of Contents PRICING & FINANCIAL ANALYSIS Investment Highlights...... 2 Executive Summary...... 3 Company Overview ...... 4

PROPERTY DESCRIPTION Physical Description...... 7 Tenant Map...... 8 Regional Map...... 9

DEMOGRAPHICS City Overview | Kilgore, TX...... 12 Demographics Report...... 13

EXCLUSIVELY LISTED BY: Jay Ceitlin Kevin Chang Gary Chou Broker of Record Associate Director | Restaurant Practice Group License No. 510276 DIRECT +1.310.919.5828 DIRECT +1.310.919.5827 MOBILE +1.951.616.8918 MOBILE +1.714.928.8016 [email protected] [email protected] License No. 01976724 License No. 01911222 Matthews Retail Group Pricing & Financial Analysis PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

Investment Highlights

INFLATION RESISTANT CASH FLOW

• Corporate Guarantee - Rent is paid by Jack in the Box Inc. which is a nationally recognized and popular Quick-Service Restaurant • 8% increases every 5 years with the next increase scheduled for July 2017 – Great Hedge Against Inflation

IDEAL 1031 EXCHANGE PROPERTY

• Absolute NNN lease with zero landlord obligations – Ideal for out-of-state cash flow investors

STRONG RETAIL LOCATION

• Grocery Anchored Location one mile north of Kilgore College which is home to over 5,000 students • Kilgore is located 25 miles east of Tyler and 10 miles southwest of Longview • Kilgore’s Community College is home to over 5,000 commuter students and is recognized as one of the lowest cost per unit colleges or universities in Texas that offers an attractive variety of courses in business, art, sciences, social sciences among others • Dominant Retail Corridor - surrounding national retailers in the immedi- ate area include Walmart, Burger King, Walgreens, McDonald’s, Taco Bell, Church’s Chicken, Sonic Drive-In, Chili’s, Brookshire’s Food & Pharmacy, Dol- lar General, O’Reilly Auto Parts, Family Dollar among others

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Executive Summary

JACK IN THE BOX Annualized Operating Data 745 US HWY 259 N Monthly Rent Annual Rent Rent/SF CAP Rate KILGORE, TX 75662 Current - 6/30/2017 $10,131.55 $121,579 $43.72 9.00% List Price...... $1,350,000 7/1/2017 - 6/30/2020 $10,942.07 $131,305 $47.21 9.72% CAP Rate - Current �� 9.00% 7/1/2020 - 6/30/2025 $11,817.44 $141,809 $50.99 10.50% Gross Leasable Area �� 2,781 SF 7/1/2025 - 6/30/2030 $12,762.84 $153,154 $55.07 11.34% Lot Size ...... ±0.64 Acres (27,878 SF) 7/1/2030 - 6/30/2035 $13,783.86 $165,406 $59.48 12.24% Year Built...... 2002

Tenant Summary

Tenant Trade Name Jack in the Box Type of Ownership Fee Simple Lease Guarantor Corporate Lease Type NNN Roof and Structure Tenant Responsible Original Lease Term 18 Years Lease Commencement Date 6/27/2002 Rent Commencement Date 7/1/2002 Lease Expiration Date 6/30/2020 Term Remaining on Lease 4.92 Increases 8% Increases Every 5 Years Options Three 5-Year Options

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Company Overview

Property Name Jack in the Box Jack in the Box Inc. (NASDAQ: JACK), based in San Diego, is a Property Type Net Leased Quick Service Restaurant restaurant company that operates and franchises Jack in the Box® Parent Company Trade Name Jack in the Box Inc. restaurants, one of the nation’s largest hamburger chains, with more than 2,200 restaurants in 21 states and Guam, and Qdoba Ownership Public Mexican Grill®, a leader in fast-casual dining, with more than Credit Rating No Rating 600 restaurants in 47 states, the District of Columbia and Canada. Rating Agency Standard & Poor’s / Moody’s The Jack in the Box segment operates quick-service restaurants Revenue 1.48B that offer a selection of products targeted at the adult fast-food Net Income 358.12M consumer, including hamburgers, tacos, specialty sandwiches, Stock Symbol JACK drinks, real ice cream shakes, salads, and side items. The Qdoba Board NASDAQ Mexican Grill segment operates fast-casual restaurants that feature No. of Locations 2,250 custom orders as well as a variety of catering options. No. of Employees 19,150 Headquartered San Diego, CA Web Site http://www.jackinthebox.com/ Year Founded 1951

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Property Description PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

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Physical Description

THE OFFERING Property Name...... Jack in the Box Property Address...... 745 US Highway 259 N Kilgore, TX 75662 Assessor’s Parcel Number �� 185607 SITE DESCRIPTION Number of Stories ��One Year Built...... 2002 GLA...... 2,781 SF Lot Size...... ±0.64 Acres (27,878 SF) Type of Ownership...... Fee Simple Parking...... ±26 Surface Spaces Parking Ratio...... 9.35 : 1,000 SF Landscaping...... Professional Topography...... Generally Level CONSTRUCTION Foundation...... Concrete Slab Exterior...... Painted Stucco Parking Surface...... Asphalt Roof...... Flat

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Tenant Map

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Regional Map

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Demographics PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

City Overview | Kilgore, TX

The City of Kilgore is located in Gregg and Rusk County and is 11 miles south of the county seat of Longview and 25 miles east of Tyler. The City is approximately 120 miles east of Dallas and 60 miles west of Shreveport, Louisiana on Interstate 20. Kilgore has been identified by the Texas Legislature as the “City of Stars.” The stars that top the sixty oil derricks throughout the City are lighted during the holiday season. This feature is only one of several reason the Legislature bestowed the title. Kilgore has a small town atmosphere, yet it is close enough to enjoy the benefits of larger cities. Kilgore is surrounded by a number of quality lakes, including Lake Cherokee and Lake O’ the Pines, making it a boater’s and fisherman’s paradise.

In sharp contrast to the thriving boomtown of the 1930s, the Kilgore of today is a vibrant city that blends its rich oil field heritage with a variety of fascinating attractions and events. Classic Shakespearean theatre, the Kilgore College Rangerettes, the East Texas Oil Museum and the steel oil derricks at the World’s Richest Acre Park appeal to visitors of all ages.

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Demographics Report

Population 1-Mile 3-Mile 5-Mile 2020 Projection 4,155 15,246 21,141 2015 Estimate 4,107 14,892 20,536 2010 Census 4,116 14,731 20,185 2000 Census 3,968 13,445 18,171 Growth 2015-2020 1.18% 2.38% 2.95% Growth 2010-2015 -0.22% 1.09% 1.74% Growth 2000-2010 3.73% 9.57% 11.08%

Households 2020 Projection 1,375 5,399 7,527 2015 Estimate 1,364 5,310 7,361 2010 Census 1,378 5,318 7,321 2000 Census 1,453 5,172 6,966 Growth 2015-2020 0.79% 1.68% 2.26% Growth 2010-2015 -1.01% -0.16% 0.54% Growth 2000-2010 -5.17% 2.82% 5.10%

Income $0 - $15,000 14.22% 12.02% 11.76% $15,000 - $24,999 12.90% 12.71% 12.87% $25,000 - $34,999 13.86% 12.305 12.09% $35,000 - $49,999 17.89% 16.21% 16.14% $50,000 - $74,999 14.59% 17.65% 17.69% $75,000 - $99,999 11.80% 11.34% 10.96% $100,000 - $124,999 6.89% 7.50% 7.55% $125,000 - $149,999 2.71% 4.05% 4.33% $150,000 - $199,999 3.01% 3.48% 3.78% $200,000 - $249,999 1.10% 1.24% 1.30% $250,000 - $499,999 0.88% 1.24% 1.28% $500,000+ 0.15% 0.24% 0.27% 2015 Est. Average Household Income $57,578 $63,320 $64,149 2015 Est. Median Household Income $42,543 $47,006 $47,346

Jack in the Box | OFFERING MEMORANDUM Matthews Retail Group P. 13 JACK IN THE BOX 745 Us Hwy 259 N Kilgore, TX 75662 OFFERING MEMORANDUM

Kevin Chang Gary Chou Jay Ceitlin Associate Director | Restaurant Practice Group Broker of Record DIRECT +1.310.919.5828 DIRECT +1.310.919.5827 License No. 510276 MOBILE +1.951.616.8918 MOBILE +1.714.928.8016 [email protected] [email protected] License No. 01976724 License No. 01911222

Matthews Retail Group | 841 Apollo Street, Suite 150 | El Segundo, CA 90245 | www.MatthewsRetailGroup.com