Single Tenant Triple Net Lease Investment 3100 Prospect Avenue, Kansas City, 64128

OFFERING MEMORANDUM PAGE 1 Disclaimer

NAI Heartland (“Broker”) has been retained by the and without limiting the foregoing, summaries all expressions of interest or offers regarding the Seller of 3100 Prospect Ave (“Property”) as the contained herein of any legal or other documents Property and/or to terminate discussions with any exclusive broker for this opportunity. are not intended to be comprehensive statements entity at any time with or without notice. Broker This Offering Memorandum has been prepared of the terms of such documents but rather only is not authorized to make any representations or by Broker for use by the principal (“Principal”) outlines of some of the principal provisions agreements on behalf of Owner. Owner shall not to whom Broker has provided this Offering contained therein, and no representations or have any legal commitment or obligation to any Memorandum. The use of this Offering warranties are made as to the completeness and/ entity reviewing this Offering Memorandum or Memorandum and the information provided herein or accuracy of the projections contained herein. making an offer to purchase the Property unless is subject to the terms, provisions and limitations Prospective purchasers of the Property should and until a written agreement for the purchase of the Confidentiality Agreement furnished make their own investigations and conclusions and sale of the Property has been fully executed, by Broker and executed by Principal prior to without reliance upon this Offering Memorandum, delivered and approved by Owner and the other delivery of this Offering Memorandum. Although the information contained herein or any other party thereto and any conditions to Owner’s the information contained herein is based upon written or oral communication or information obligations hereunder have been satisfied or sources believed to be reasonably reliable, transmitted or made available. Additional waived. If you have no interest in the Property Owner and Broker, on their own behalf, and on information and an opportunity to inspect the at this time, return this Offering Memorandum behalf of their respective officers, employees, Property will be made available upon written immediately to: shareholders, partners, directors, members and request by interested and qualified prospective NAI Heartland affiliates, disclaim any responsibility or liability purchasers. 4400 College Boulevard, Suite 170 for inaccuracies, representations and warranties Owner expressly reserves the right, exercisable in Overland Park, Kansas 66211 (expressed or implied) contained in, or omitted Owner’s sole and absolute discretion, to withdraw tel +1 913 362 1000 from, the Offering Memorandum or any other the Property from being marketed for sale at any fax +1 913 362 6700 written or oral communication or information time and for any reason. Owner and Broker each www.nai-heartland.com transmitted or made available to the recipient of expressly reserves the right, exercisable in their this Offering Memorandum. In amplification of sole and absolute discretion, to reject any and

PAGE 2 Table Of Contents

04 Offering Summary 05 Property Description

08 Tenant Overview

10 Market Overview

PAGE 3 Offering Summary Popeyes 3100 Prospect Avenue Kansas City, Missouri 64128

Price: $1,250,000 2020 NOI: $82,283.04 Capitalization Rate: 6.58% 2025 NOI: $91,965.96 2025 Cap Rate: 7.36% Net Rentable Area: 2,368 SF Lot Size: 22,370 SF Year Renovated: 2019 Year Built: 1987

Investment Highlights

• Single tenant Popeyes pad in front of the Linwood Shopping Center • Over Seven years remaining on lease - guaranteed by Popeyes Franchisee • Absolute NNN; no landlord responsibilities • Annual Rent Bumps • Franchisee operates 36 Popeyes Restaurants in three states

PAGE 4 OFFERING SUMMARY KANSAS CITY KANSAS CITY INTERNATIONAL AIRPORT (MCI) INTERNATIONAL AIRPORT

- 11.5 million annual passengers 2 5 - Nonstop flights from 51 MSA’s across the U.S. M in u t e

D

r i v e

SUBJECT PROPERTY

PAGE 5 PROPERTY DESCRIPTION Downtown 70 Kansas City

670

Crown Center Liberty Memorial

35 SITE

Linwood Blvd

Prospect Ave Prospect 31st Street

Westport

Prospect Ave

Linwood Blvd Nelson- Atkins

Country Club Plaza

UMKC

PAGE 6 PROPERTY DESCRIPTION Property Photos

PAGE 7 PROPERTY DESCRIPTION KANSAS CITY The Kansas City MSA is made up of fifteen counties that are split between Kansas and Missouri and is located in the central region of the . Kansas City sits between The Kansas City MSA is made up of fifteen counties that are split between Kansas and Missouri and is located in the central region of the United States. Kansas City sits between the northeast region of Kansas and the northwestern region of Missouri, where the Kansas and Missouri Rivers converge. The population of the MSA is estimated to be 2.3 million the northeast region of Kansas and the northwestern region of Missouri, where the Kansas and Missouri Rivers converge. The population of the MSA is estimated to be 2.3 million and is the 30th largest in the United States. As the most geographically-central major metro in the country, economic activity in Kansas City is diverse and is anchored by trade, and is the 30th largest in the United States. As the most geographically-central major metro in the country, economic activity in Kansas City is diverse and is anchored by trade, transportation, and utilities distribution followed by government, professional and business services, and educational and health services. transportation, and utilities distribution followed by government, professional and business services, and educational and health services.

2.1 MILLION Residents – LARGEST METRO in 32.5% PROJECTED 1.1 MILLION PEOPLE – Total 2.1 MILLION Residents – LARGEST METRO in 32.5% PROJECTED 1.1 MILLION PEOPLE – Total Total Metro Population Kansas, and Second Largest JOB GROWTH Over Next Ten Workforce in Metro Area Total Metro Population Kansas, and Second Largest JOB GROWTH Over Next Ten Workforce in Metro Area Metro in Missouri Years (Sperling’s Best Places) Metro in Missouri Years (Sperling’s Best Places)

LOCATION OVERVIEW 21 LOCATIONPAGE 10OVERVIEW MARKET OVERVIEW21 • Bustling metropolitan area featuring modern urban living and family-friendly suburban city centers • The area consistently ranks among the nation’s most affordable housing markets in the country WHY KANSAS CITY • The cost-of-living is 2.5% below the national average • The area has an impressive concentration of high-ranking school districts

MEDIAN AVERAGE AVERAGE HOUSEHOLD POPULATION AGE HOUSEHOLD SIZE INCOME GROWTH FROM 2010

35.6 compared to the US 2.35 $65,676 0.67% ANNUALLY median age of 38 Source: Economic Development Corporation of Kansas City, Missouri (EDCKC)

The KC MSA includes both Downtown KC has experienced Located in the heart of the The City of Kansas City, Missouri, The Kansas City area Missouri and Kansas more than $6.5 billion in country, Kansas City is only a touts 220 parks, 134 miles of boasts more than 100 commercial, residential and hotel 3-hour flight from either coast. trails and bikeways, 29 lakes, 103 barbecue restaurants. development in the last 10 years. playgrounds and 119 monuments.

LOCATIONPAGE 11OVERVIEW MARKET OVERVIEW22 TOP CITY WHERE TOP 10 BEST MILLENNIALS HAVE THE BEST COST OF LIVING STATES FOR RETIREMENT – Dallas Business Journal, July 2019 – Bankrate, July 2019

TOP 10 IN ECONOMIC RANKED NO. 23 IN 2019'S GROWTH POTENTIAL HEALTHIEST EMPLOYERS – Business Facilities, July 2019 – KC Business Journal, February 2019

RANKED NO. 2 FOR HIGH PAYING JOBS AND RANKED NO. 1 2018'S LOW COST OF LIVING KANSAS BEST PLACES TO RAISE A – CNBC Make It, February 2018 FAMILY (OVERLAND PARK) CITY – WalletHub, September 2018 ACCOLADES TOP 50 CITIES FOR TOP 5 BEST PLACES FOR

CLEAN ENERGY JOBS WORK LIFE BALANCE – Business Insider, February 2018 – E2, October 2018

AMONGST FIVE UP-AND- COMING TECH HOTSPOTS AMERICA’S BEST EMPLOYERS, – Livability, March 2018 SIX KC -AREA BUSINESSES 2018 TOP 100 BEST LANDED ON "AMERICA'S BEST PLACES TO LIVE EMPLOYERS" LIST – Livability, January 2018 – Forbes, May 2018

LOCATIONPAGE 12OVERVIEW MARKET OVERVIEW23 ECONOMY Kansas City is regarded as a cultural and economic hub in the Midwest. The local economy is home MAJOR KANSAS CITY EMPLOYERS to a diverse group of industries and has historically been stable amidst economic fluctuations seen Company Employees in other parts of the U.S. Due largely in part to the wide variety of industry segments in the area, the 1. Cerner Corporation 13,964 economy of Kansas City has historically been stable and has done well weathering against fluctuations 2. Children’s Mercy Hospitals & Clinics 8,123 3. Internal Revenue Service 4,600 seen in other parts of the U.S. Central location and a vast transportation infrastructure have been 4. City of Kansas City 4,521 instrumental in attracting a long list of global companies to the region including nine Fortune 1000 5. University of Missouri – Kansas City 3,850 companies. The area is home to the largest rail center in the United States by tonnage, located on the 6. Honeywell FM&T 3,600 nation’s largest navigable inland waterway, and is home to the largest underground warehousing and 7. , Inc. 3,222 Distribution Park in the Country, SubTropolis. The largest industries represented in the metropolitan 8. St. Luke’s Hospital of Kansas City 3,195 9. Burns & McDonnell 2,793 area include manufacturing, professional and technical services, healthcare, and transportation. 10. Kansas City, MO School District 2,500

UNEMPLOYMENT RATE COST OF LIVING INDEX METRO GROSS DOMESTIC FORTUNE 1000 CORP HQ PRODUCT

3.6% 91.9 $131.092 BILLION 9

LOCATION OVERVIEW 24 PAGE 13 MARKET OVERVIEW ECONOMY With a cost of living 2.5% below the national average and an average household income of approximately FORTUNE 1000 CORPORATE HEADQUARTERS $65,676, Kansas City is ranked the second most affordable metropolitan area in the U.S. which has Company Number Revenue played a large role in the population growth seen in recent years. Cerner #519 $5.14 billion YRC Worldwide #532 $4.89 billion H&R Block #726 $3.04 billion At the center of economic development in the region is the $1.5 billion terminal expansion plan at Great Plains Energy #729 $2.71 billion Kansas City International Airport, expected to begin in late 2019. This, among other economic kick Kansas City Southern #815 $2.58 billion starters in the region will be instrumental in job growth and economic expansion in the near future for Westar Energy #817 $2.57 billion Kansas City. Over the course of the next two years the regional economy is predicted to gain over Euronet Worldwide #895 $2.25 billion 17,000 new jobs in construction, healthcare, and professional and technical services. DST Systems #880 $2.28 billion Ferrellgas Partners #977 $1.93 billion

LOCATION OVERVIEW 25 PAGE 14 MARKET OVERVIEW HIGHER EDUCATION

The Kansas City area is home to a variety of public and private schools that have high quality education indicators – graduation rate, student-to-faculty ratio and academic programs. Together these institutions enroll approximately 140,000 students annually, and graduate approximately 31,000 students into the workforce each year. In addition, seven Kansas City universities rank in the Top 25 of Great Value Colleges’ 50 Affordable Colleges.

Kansas City MSA Universities and Colleges • University of Missouri – Kansas City • Baker University • • Kansas City University • Benedictine College • University of Kansas – Lawrence • Park University • • William Jewell College • MidAmerican Nazarene University • Kansas City University of Medicine • University of Kansas Medical Center and Biosciences • University of Kansas – Edwards • University of Central Missouri Campus • University of Missouri – Columbia • Webster University

In addition, the MSA offers the following two-year community colleges, technical schools, and institutes: Metropolitan Community College – with several campuses throughout the MSA | The Kansas City Art Institute | Vatterott College Kansas City Kansas Community College | Johnson County Community College

Regional Universities

LOCATION OVERVIEW 26 PAGE 15 MARKET OVERVIEW GREAT QUALITY WORKFORCE

Kansas City, Missouri, boasts a stable economy with a variety of job opportunities and has one of the most diverse labor pools in the nation, allowing Kansas City companies to compete in the global marketplace.

Kansas City is RANKED 7TH among its peer cities in ASSOCIATE DEGREE or higher and 4TH for BACHELOR DEGREES and higher educational attainment for all adults age 25 and up.

95% of Kansas City, MO’s workforce aged 16 and up are EMPLOYED.

By occupation, 52.8% are SERVICE INDUSTRY-RELATED and second

Source: Economic Development Corporation of Kansas City, Missouri (EDCKC) largest industry is the retail trade with 10.8%.

LOCATION OVERVIEW 27 PAGE 16 MARKET OVERVIEW TRANSPORTATION An extensive transportation network connects the Kansas City metro to the U.S. marketplace. Companies have benefited from the area’s central location and access to major transportation corridors. The metropolitan area is served by more than 10 major commercial airlines and their connection partners. These carriers offer approximately 200 daily departures with nonstop service to over 50 destinations and facilitated more than 11.8 million passengers in 2018, according to the Kansas City International Airport. Kansas City is generally regarded to be the second largest rail center in the U.S. and ranked first by freight volume.

Highway Rail Air Ports

AVERAGE COMMUTE TIME #1 Over 11.8 MILLION The Inland Waterway allows 22.9 MINUTES RAIL BY TONNAGE IN THE US passengers served in 2018 shipments to be made from Kansas City to Pittsburgh, New Orleans, #3 Serviced by 13 AIRLINES , Minneapolis and several TRUCK CENTER IN THE US other cities on the east coast 4 INTERSTATES Top Airlines Serving KCI: Over 500 MILLION (I-29, I-35, I-49, I-70) TONS OF CARGO is shipped on the rivers annually

Missouri has access to over 1,000 MILES 4 INTERSTATE 54 NON-STOP domestic of the Missouri and Mississippi LINKAGES and international destinations RIVERS (I-435, I-470, I-635, I-670) 205 MILLION pounds of cargo transported in 2018

$1.5 BILLION Terminal 9 U.S. HIGHWAYS Expansion Project Underway

LOCATION OVERVIEW 28 PAGE 17 MARKET OVERVIEW ENTERTAINMENT AND LIFESTYLE

Kansas City is home to a wide variety of entertainment and recreational activities. The metropolitan area is home to numerous performing arts and cultural organizations including three acclaimed art museums, and more than 65 performing arts groups. The Crossroads Arts District and the extraordinary Kauffman Center for the Performing Arts are amongst the main cultural destinations in the area.

In the business community, Kansas City continues to become a destination for high-profile start-ups and entrepreneurs. The area boasts a low cost of living, an educated workforce and multiple award-winning school districts.

Professional Sports: Kansas City is District: The Kansas City Power and Light District: District: Located on the currently the home of three major league sports 15-square-block outdoor shopping and The nine-block Power & Light District in downtown southern edge of , Crown teams including the Kansas City Chiefs (Football), entertainment district was established in 1922 and Kansas City links the Kansas City Convention Center offers fine hotels, entertainment, dining, Kansas City Royals (Baseball), which won the World features boutiques and national stores as well as Center to the Sprint Center. The 24/7 neighborhood shopping, offices and residential living in the city’s Series in 2015, and Sporting Kansas City (Soccer), distinctive restaurants, outdoor cafes and nightlife is home to more than 50 restaurants, bars, burgeoning cultural arts and professional services as well as numerous other minor league teams hotspots. Country Club Plaza boasts Spanish entertainment venues and retail outlets. district. across a wide variety of sports. Kansas City has architecture adorned with dazzling fountains and recently been labeled as one of the best cities in European art. America for sports fans.

Crossroads Arts District: Once vacant 18th & Vine District: This district is known Westport District: Westport is Kansas City’s Zona Rosa: A mixed-use urban center in warehouses, the Crossroads Arts District is an as Kansas City’s historic jazz district. It is home to original entertainment district and it boasts a rich Kansas City’s booming Northland, Zona Rosa artistic downtown neighborhood that offers a thriving the . The museum includes history as the oldest established community in offers more than 100+ shopping, dining and arts scene. The Crossroads Arts District is home the interactive exhibits and educational programs as Kansas City. entertainment options. With nearly one million Kauffman Center for the Performing Arts, a jewel of well as The Blue Room, a working jazz club, and square feet of retail, office and residential space, Kansas City. The 285,000-square-foot glass and The Gem Theater, a modern 500-seat performing Zona Rosa is a one-of-a-kind destination drawing stainless steel structure features the technologically arts center. customers from in and around the city and beyond. advanced Muriel Kauffman Theatre and Helzberg Hall, with 1,800 and 1,600 seats, respectively.

LOCATION OVERVIEW 29 PAGE 18 MARKET OVERVIEW 3100 Prospect Avenue Kansas City, Missouri 64128

JON S. ENGLAND, CCIM, SEC Managing Principal 913-890-2002 [email protected]