INVESTMENT OPPORTUNITY ** FUTURE REMODEL PLANNED ** (CORPORATE LEASE) NEW 15-YEAR LEASE EXTENSION ABSOLUTE NNN LEASE PALM SPRINGS, CA

OFFERED AT: $2,880,000 | 4.00% CAP OFFERED AT $2,027,000 | 6% CAP

Actual Property EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

** FUTURE REMODEL PLANNED ** 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 Property Photos 11 Neighboring Tenants 12 Aerials

TENANT OVERVIEW 19 About Del Taco

AREA OVERVIEW 21 Palm Springs Overview 22 The Coachella Valley 23 Riverside County Overview 24 Demographics

Confidentiality Agreement & Disclosures

EXCLUSIVELY LISTED BY

RYAN BARR RYAN BENNETT Principal Principal 760.448.2446 760.448.2449 [email protected] [email protected] TODD WALLER DRE Lic#01338994 DRE Lic#01826517 Principal 608.327.4001 [email protected]

Actual Property

DEL TACO | Palm Springs, CA | 2 EXECUTIVE SUMMARY

DEL TACO Palm Springs, CA

DEL TACO | Palm Springs, CA | 3 Actual Property EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

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

-- OFFERING SUMMARY -- RAQUET CLUB INVESTMENT HIGHLIGHTS PROPERTY OVERVIEW GARDEN VILLAS Offering Price: $2,880,000 Address: 2444 N Palm Canyon Dr Palm Springs, CA 92262 Net Operating Income: $115,200 Property Size: 2,251 SF Cap Rate: 4.00% Land Size: 0.50 Acre Price/SF: $1,279 Ownership: Fee Simple Lease Type: Absolute NNN Lease Year Built: 1982 (Future Remodel)

Lee & Associates is pleased to exclusively offer for sale the opportunity to acquire the fee simple interest (land & building) in a Del Taco investment property located in the Palm Springs, CA (the “Property”). Originally built in 1982 as a build to suit for Naugles, the Property is currently leased by Del Taco Corporate on a long term lease that consists of a 2,251-square-foot retail NORTHGATE 111 43 @RACQUET building with a drive-thru lane and outdoor patio seating. SHOPPING CENTER CLUB The subject property is leased to Del Taco (corporate), an American quick service chain specializing in American- style as well as American foods such as burgers, fries, and shakes. The chain serves over 3 million visitors each week at its approximately 600 across 15 states and reports sales revenues of roughly $513 million (2019). Del Taco (formerly Naugles) has operated at this location since 1982 and has executed multiple lease extensions, the most recent a 15-year extension in October 2020 that commences January 1, 2021. The Absolute NNN lease features 10% rent increases every five years in the Primary Term and in the Option Periods. 111 The tenant has committed to completing a full remodel of the building at their own expense to meet the latest Del Taco prototype façade. The building ideally has a drive through lane and window for pull up service helping to insulate the tenant W RACQUET CLUB RD (8,100 CPD) from business closures due to COVID-19. Drive through buildings along CA Highway 111 are extremely hard to replicate due COMBINED to moratoriums in place within the Coachella Valley. 24,000 CPD The subject property is ideally located at the intersection of N. Palm Canyon Dr/Hwy 111 & W. Racquet Club Rd., providing N PALM CYN DR (16,000 CPD) excellent visibility and signage to over 24,000 cars per day and providing for easy in/out access via the drive thru. The N. Palm Canyon Dr./Hwy 111 corridor is the main travel route between Interstate 10 and downtown Palm Springs. It’s home to the city’s core shopping district which features vintage boutiques, numerous hotels, and restaurants. It’s also home to services such as the Desert Regional Medical Center, a 385-bed regional medical center with emergency services and the only designated Level II trauma center in the Coachella Valley. The subject property is located within the iconic City of Palm Springs, approximately 107 miles east of Los Angeles and 125 miles northeast from San Diego. Known for its hot springs, golf courses, trendy hotels and spas, it’s a popular spot for residents looking for a weekend getaway, as well as a popular destination for snowbirds - people who live in cold climates and seek out warm weather during the winter. The permanent population is estimated to be 48,518, with 111 another 27,000 to 30,000 people arriving in the winter, bringing the total population to almost 80,000 residents during the THE INN AT PALM winter season. SPRINGS With an estimated 12 million visitors on average, tourism is the one contributor to the local economy. employing over 19,000 people. Tourism generates over $4 billion per year, bringing in sales tax of approximately $486 million. Additionally, with more golf courses than any other region in the state, the Coachella Valley is the most popular golf vacation destination in California. Housing, commercial, and renewable power developments are on the rise in Coachella Valley, increasing the economic impact from the construction industry. Palm Springs is currently experiencing a housing boom due to low interest rates and a strong Actual Property demand to relocate from more urban areas. Most homes are receiving multiple offers, and often selling over asking prices.

DEL TACO | Palm Springs, CA | 4 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

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

-- INVESTMENT HIGHLIGHTS --

DEL TACO CORPORATE LEASED INVESTMENT OPPORTUNITY | ICONIC CITY OF PALM SIGNALIZED INTERSECTION OF N. PALM CANYON DR./HWY 111 & W. RACQUET CLUB RD. SPRINGS | 15-YEAR ABSOLUTE TRIPLE-NET (NNN) LEASE | FUTURE BUILDING REMODEL AT (24,000+ CPD) | MAIN TRAVEL ARTERY IN/OUT OF DOWNTOWN PALM SPRINGS | QUICK THE TENANT’S EXPENSE ACCESS TO INTERSTATE 10 • Highly Desirable Corporate Del Taco Investment in Iconic City of Palm Springs • Strategically located near the signalized Intersection of N. Palm Canyon Dr./Hwy 111 & W. • 2nd Largest Mexican QSR in the U.S with 600 Locations Across 15 States Racquet Club Rd. (combined 24,000+ CPD) • Revenues of $513M (2019) • Excellent visibility and signage along major travel corridor in/out of downtown Palm • Del Taco has committed to a full remodel of the Building to their Latest Prototype Façade Springs from Interstate 10 • COVID-19 Resilience due to Drive Through & Outdoor Patio Seating • Multiple entrances from N. Palm Canyon Dr. & W. Racquet Club Rd.

SUCCESSFUL 38-YEAR OPERATING HISTORY | PROVEN LOCATION | ABSOLUTE NNN LEASE | N. PALM CANYON DR. HOME TO PALM SPRING’S CORE SHOPPING DISTRICT | 10 MINUTES 10% RENT BUMPS IN PRIMARY TERM & OPTIONS TO FAMOUS PALM SPRINGS AERIAL TRAMWAY | PROXIMITY TO HOTELS, RESTAURANTS, • Del Taco (formerly a Naugles) has successfully operated at this location since 1982 BOUTIQUES | BLOCKS FROM DESERT REGIONAL MEDICAL CENTER • Recent 15-Year Lease Extension (Oct 2020) with 10% Rent Increases Every 5 Years • N. Palm Canyon Drive is home to Palm Spring’s Main Shopping District • Multiple Lease Extensions Reflect Strong Commitment to Site • Home to Popular Boutiques, Galleries, Restaurants, and Hotels • Absolute NNN Lease with Zero landlord responsibilities • Subject property is just 10 minutes from famous Palm Springs Aerial Tramway, which sees • 10% Rent Escalations Every 5 Years inclusive of Option Periods an average 1,500-2,000 riders on normal days and 3,500 people per day during the holidays • Only 1 Mile from Desert Regional Medical Center, a 385-bed regional medical center with FUTURE NEW RETAIL SURROUNDING SITE | ADJACENT TO ART COLONY: 10 ACRES OF PRIME emergency services (Center is the only designated Level II trauma center in the Coachella INFILL LAND | PROPOSED HIGH DENSITY RESIDENTIAL DEVELOPMENT Valley) • Future Retail Development Surrounding the Subject Property (Contact Broker for Details) • Adjacent to Art Colony, one of the last sizable fee-land infill properties remaining in Palm LOCATED IN PALM SPRINGS | POPULAR GETAWAY FOR SOUTHERN CALIFORNIA RESIDENTS Springs (+/- 10 Acres) | POPULATION NEARLY DOUBLES IN WINTER | ESTIMATED 12M VISITORS PER YEAR | MOST • Proposed High Density Residential Development (Residential Attached, Multi-Family, POPULAR GOLF DESTINATION IN CALIFORNIA | INCREASING HOUSING DEMAND Senior, or Hospitality) • Located only 107 Miles from Los Angeles, 125 Miles from San Diego • Popular destination for golf, recreation, music, art, and film • Ideal 2nd home market for part-time residents escaping “snow country” • Most popular golf destination in California • Strong housing market during Covid-19 has brought more tax & sale revenues to the area • Housing, commercial and renewable power developments on the rise in Coachella Valley

DEL TACO | Palm Springs, CA | 5 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

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

-- LEASE SUMMARY -- -- RENT SCHEDULE --

LEASE INFORMATION LEASE TERM TENANT: Del Taco LLC (Corporate) TERM START DATE END DATE NOI/YR NOI/MO NOI/SF/YR BUILDING SIZE: 2,251 SF Years 1 - 5 1/1/2021 12/31/2025 $115,200.00 $9,600.00 $51.17 LOT SIZE: 0.50 Acre Years 6-10 1/1/2026 12/31/2030 $126,720.00 $10,560.00 $56.30 RENT COMMENCEMENT: January 1, 2021 Years 11 - 15 1/1/2031 12/31/2035 $139,392.00 $11,616.00 $61.92 LEASE EXPIRATION: December 31, 2035 OPTION PERIODS - (2) 5-YEAR OPTIONS BASE TERM: 15 Years (New Extension - Commences 1/1/2021) Option 1 1/1/2036 12/31/2040 $153,331.20 $12,777.60 $68.12 REMAINING LEASE TERM: 15 Years Option 2 1/1/2041 12/31/2045 $168,664.32 $14,055.36 $74.93 OPTIONS TO RENEW: (2) 5-Year Options RENT INCREASES: 10% Increases Every 5 Years in Primary Term & Each Option LEASE TYPE: Absolute Triple-Net (NNN) Lease LANDLORD RESPONSIBILITIES: None ANNUAL RENT: $115,200

DEL TACO | Palm Springs, CA | 6 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

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

-- LEASE ABSTRACT --

Utilities: 6. - Tenant shall pay all charges for utilities used on the leased premises during the term of this Lease.

7. Lessee shall, at its sole cost and expense, maintain in full force and effect during said term (a) extended coverage insurance covering all improvements, structures and their contents on the Insurance: leased premises on a full replacement cost basis (no deduction for depreciation), insuring against all risks of direct physical loss, and excluding only such unusual perils as nuclear attack, earth movement, flood and war; (b) bodily injury and property damage comprehensive public liability insurance with combined single limit coverage of not less than $1,000,000.

9 - From and after commencement of the term of this Lease, Lessee shall, at its expense, maintain the leased premises and the improvements thereon. Maintenance and Repair: 2nd Amendment, 6. - Tenant agrees to maintian (all Landscape Work) at Tenant’s sole cost throughout the balance of the extended term of the Lease.

4th Amendment, 5. - Effective as of January 1, 2021, Tenant shall be responsible for maintaining the entire Demised Premises, including the access driveway off Racquet Club Drive, and all other common areas on the Demised Premises. As consideration for Tenant’s assumption of such common area maintenance obligations, Tenant’s obligation to pay its pro rata share of Common Area Maintenance: common area operating costs pursuant to Paragraph 22 of the Original Lease is deemed of no further force or effect and Tenant shall no longer be liable for payment of such costs; provided, however, Tenant shall continue to be responsible for payment of all additional sums required from Tenant pursuant to the Lease, including but not limited to, the Tenant’s obligations described in Sections 5 (taxes), 6 (utilities), 7 (insurance).

4th Amendment, 6. - Subject to delays arising from force majeure or other causes beyond Tenant’s control, Tenant shall use commercially reasonable efforts to complete a major remodel of the Remodel/Upgrades: Demised Premises. Any remodeling or upgrading of the Demised Premises shall be at Tenant’s sole cost and expense. Landlord shall have no obligation to contribute funds for the completion of any such work.

DEL TACO | Palm Springs, CA | 7 EXECUTIVE SUMMARY

DEL TACO Palm Springs, CA

DEL TACO | Palm Springs, CA | 8 Actual Property EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

• Location Maps • Property Photos Neighboring Tenants Aerials

-- LOCATION MAPS --

RIDGECREST

BAKERSFIELD

TO LOS ANGELES 107 MILES 111

BARSTOW SUBJECT PROPERTY

LANCASTER

PALMDALE VICTORVILLE 111 APPLE VALLEY 111B Palm Springs Escena Golf Club HESPERIA International Airport VENTURA PALM SPRINGS SAN BERNARDINO 111 LOS ANGELES RIVERSIDE

ANAHEIM PALM SPRINGS

LONG BEACH PALM DESERT IRVINE INDIO Tahquitz Creek TEMECULA 111B Golf Resort Mission Hills Cathedral Canyon Country Club Golf Club

Indian Canyons 111B Pacific Ocean CARLSBAD Golf Resort CATHEDRAL CITY

111

Tamarisk SAN DIEGO Country Club

DEL TACO | Palm Springs, CA | 9 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps • Property Photos • Neighboring Tenants Aerials

-- PROPERTY PHOTOS --

DRIVE-THRU LANE PROPERTY FROM W RACQUET CLUB DR

DEL TACO | Palm Springs, CA | 10 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Property Photos • Neighboring Tenants • Aerials

-- NEIGHBORING TENANTS --

INN AT PALM SPRINGS ACROSS FROM DEL TACO 7-ELEVEN ACROSS PALM CYN DR FROM DEL TACO

N PALM CYN DR / HWY 111

W RACQUET CLUB RD

CARL’S JR ACROSS STREET FROM DEL TACO NORTHGATE 111 SHOPPING CENTER ACROSS FROM DEL TACO

DEL TACO | Palm Springs, CA | 11 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Property Photos Neighboring Tenants • Aerials • ACCESS -- OVERHEAD VIEW -- N PALM CYN DR (16,000 CPD) FUTURE RETAIL

111

FUTURE RETAIL

FUTURE RETAIL PROPOSED MONUMENT SIGN

DRIVE-THRU LANE

ACCESS W RACQUET CLUB RD (8,100 CPD)

NORTHGATE 111 SHOPPING CENTER

DEL TACO | Palm Springs, CA | 12 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Property Photos Neighboring Tenants • Aerials •

-- PROPOSED ADJACENT DEVELOPMENT --

PROPOSED MONUMENT SIGN W RACQUET CLUB RD (8,100 CPD)

Future Retail Future N PALM CYN DR (16,000 CPD) Retail FUTURE RESIDENTIAL INDIAN CANYON DR Future Retail

W VIA OLIVERA

DEL TACO | Palm Springs, CA | 13 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Property Photos Neighboring Tenants • Aerials •

RAIL LINES -- LOOKING NORTHEAST --

N INDIAN CANYON DR FOUR SEASONS PALM SPRINGS

MIRALON COYOTE RUN APARTMENTS SANTIAGO SUNRISE VILLAGE

PALERMO SUNRISE E SAN RAFAEL DR PALMS • MAGNA GLASS & WINDOW CO N AVENIDA CABALLERO • BAVARIAN AUTO REPAIR PARK SAN RAFAEL SUNDANCE II MOUNTAIN GATE ROSA GARDENS • SUPERBLOOM STUDIOS PALM SPRINGS • PALM SPRINGS PLATING APARTMENTS VIEW APARTMENTS BROWN’S BBQ & SOUL FOOD SUNNY VIEW VISTA DEL MONTE VILLA ELEMENTARY SCHOOL

E SAN RAFAEL DR PALM SPRINGS VILLAS2 PARKWOOD PALM SPRINGS OLD PALM SPRINGS APARTMENTS VILLAS RACQUET CLUB PALM SPRINGS 111 N PALM CANYON DR (16,000 CPD) FIRE DEPT RAQUET CLUB CAMINO PALM SPRINGS GARDEN VILLAS DEL SOL VISITORS CENTER VILLA FONTAINE N INDIAN CANYON DR 43 @RACQUET CLUB TRAMWAY RD INDIAN W RACQUET CLUB RD PALM SPRINGS CAR CANYON TITLE LOANS CORP GARDENS ADRIATIC THE INN AT PALM RESORT SPRINGS CALIFORNIA NURSING & REHABILITATION VIA ESCUELA 111 CENTER

DEL TACO | Palm Springs, CA | 14 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Property Photos Neighboring Tenants • Aerials •

-- LOOKING SOUTHEAST -- INDIAN WELLS CATHEDRAL CITY

PLAZA DEL SOL CATHEDRAL CANYON SHOPPING CENTER CIMARRON GOLF CLUB WORLDMARK PALM SPRINGS INDIAN CANYONS DESERT PRINCESS GOLF RESORT PLAZA RESORT & SPA GOLF RESORT COUNTRY CLUB CANYON AGUA CALIENTE MESQUITE GOLF & PALM SPRINGS E PALM CANYON DR ELEMENTARY SCHOOL PALM SPRINGS COUNTRY CLUB ESTATES ESCENA POLICE DEPT HIGH SCHOOL GOLF CLUB PALM SPRINGS E TAHQUITZ CYN WAY US LAND MGMT INTERNATIONAL AIRPORT BUREAU RENAISSANCE PALM SPRINGS PALM SPRINGS MARKETPLACE PALM SPRINGS SAGEWOOD CONVENTION CTR AQUA CALIENTE N SUNRISE WAY CASINO E VIA ESCUELA THE COLONY OF KATHERINE FINCHY N PALM CANYONO’DONNELL DR RANCH CLUB EL MIRADOR PALM SPRINGS ELEMENTARY SCHOOL PALM SPRINGS GOLF CLUB N AVENIDA CABALLERO 111 RAYMOND CREE DESERT REGIONAL MIDDLE SCHOOL MEDICAL CENTER SUNRISE SQUARE SHOPPING CENTER E RACQUET CLUB RD DESERT DORADO 111B VILLAS DESERT SUN RESORT E VIA ESCUELA MARGARITAVILLE N INDIAN CANYON DR SUNRISE RESORT PALMS 111 64 AT THE RIV IVY PALM INDIAN CONDOS RESORT CANYON PALM SPRINGS GARDENSCALIFORNIA N PALM CANYON DR (16,000 CPD) FIRE DEPT NURSING & REHABILITATION N AVENIDA CABALLEROVISTA DEL MONTE CENTER ELEMENTARY SCHOOL W VIA ESCUELA CAMINO W RACQUET CLUB RD DEL SOL SUNDANCE II PARKWOOD VILLA FONTAINE APARTMENTS 43 @RACQUET CLUB OLD PALM SPRINGS N INDIAN CANYON DR NORTHGATE 111 THE INN AT PALM PARK SAN RAFAEL RACQUET CLUB SPRINGS SUNNY VIEW SHOPPING CENTER VILLA RAQUET CLUB GARDEN VILLAS 111

DEL TACO | Palm Springs, CA | 15 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Property Photos Neighboring Tenants • Aerials •

-- LOOKING SOUTHWEST -- TO PALM SPRINGS AERIAL TRAMWAY

O’DONNELL GOLF CLUB CASA DE MONTE VISTA PALM SPRINGS ** ELVIS PRESLEY ** ESTATE TRAMWAY RD

** RAYMOND LOEWY’S ** HOUSE

** LIBERACE ** HOUSE 111B N PALM CANYON DR LA SIESTA VILLAS ARRIVE PALM SPRINGS CASA DE ORO DESERT VACATION CONDOS VILLAS DESERT SUN RESORT THE PALM SPRINGS HOTEL INFUSION BEACH CLUB 111 BY OYO N PALM CANYON DR (16,000 CPD) NORTHGATE 111 111 IVY PALM TOUCANS THE ADRIATIC SHOPPING CENTER MARGARITAVILLE N INDIAN CANYONRESORT DR 111 RESORT TIKI LOUNGE RESORT

64 AT THE RIV CALIFORNIA CONDOS NURSING & REHABILITATION 43 @RACQUET CENTER CLUB RAQUET CLUB INDIAN GARDEN VILLAS CANYON GARDENS W RACQUET CLUB RD

VILLA FONTAINE

DEL TACO | Palm Springs, CA | 16 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Property Photos Neighboring Tenants • Aerials •

-- LOOKING NORTHWEST --

MOUNTAIN GATE 111

ROSA GARDENS PALM SPRINGS APARTMENTS VILLAS2 PALM SPRINGS VISITORS CENTER PALM SPRINGS VIEW APARTMENTS TO PALM SPRINGS • MAGNA GLASS & WINDOW CO TRAMWAY RD E SAN RAFAEL DR • BAVARIAN AUTO REPAIR AERIAL TRAMWAY PALM SPRINGS BROWN’S BBQ • SUPERBLOOM STUDIOS VILLAS & SOUL FOOD • PALM SPRINGS PLATING

N PALM CANYON DR (16,000 CPD)

W RACQUET CLUB RD

NORTHGATE 111 SUNNY VIEW SHOPPING CENTER RAQUET CLUB VILLA GARDEN VILLAS OLD PALM SPRINGS THE INN AT PALM RACQUET CLUB SPRINGS

43 @RACQUET PARKWOOD APARTMENTS W RACQUET CLUB RDCLUB N INDIAN CANYON DR VILLA FONTAINE

CAMINO 111 DEL SOL

DEL TACO | Palm Springs, CA | 17 EXECUTIVE SUMMARY

DEL TACO Palm Springs, CA

DEL TACO | Palm Springs, CA | 18 Actual Property EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

• About Del Taco •

-- ABOUT DEL TACO --

Del Taco Restaurants, Inc. (NASDAQ: TACO) is the nation’s second largest Mexican quick service restaurant*. It serves high-quality- freshly prepared food typical of fast casual restaurants but with the speed, convenience and value associated with traditional quick service restaurants (QSRs”). With attributes of both a and a QSR - a combination they call QSR+ - Del Taco occupies a place in the restaurant market distinct from most competitors. The company is poised for continued growth, operating within the fastest growing segment of the restaurant industry, the limted service restaurant (“LSR”) segment. The company serves food prepared in working kitchens where the customers can watch the cooks grilling marinated chicken and steak, chopping tomatoes and cilantro for salsa, grating cheddar cheese, slicing avocados and slow cooking whole pinto beans. Their distinctive menu offers a combination of Mexican-inspired food, such as tacos and burritos, and American classics, such as “Double Del” cheeseburgers, crinkle-cut fries and milkshakes. The dual menu offers something for everyone, helping them attract a broader customer base than other Mexican LSRs while eliminating the “veto vote”. During the past year, Del Taco has successfully entered into the digital landscape by making their freshly-prepared and craveable food available through three delivery service providers: Grubhub, Postmates and DoorDash. As Del Delivery volume increases, the company has experienced a delivery check average that is significantly higher than their at-restaurant check average. COMPANY OVERVIEW Company Name: Del Taco Restaurants, Inc. In 2019, the company opened 24 new system-wide restaurants in 12 states as franchisees led to additional growth Founded: 1964 with 14 openings. Additionally, they refranchised a total Headquarters: Lake Forest, CA of 36 restaurants through March 2020, securing franchise development commitments for an additional 35 restaurants Stock Symbol: NASDAQ: TACO over time. Sales Revenues (FY2020): $512.95 Million Founded in 1964, today Del Taco (short for Delicious Taco) Restaurants: 596 in 15 States serves more than three million guests each week at its approximately 600 restaurants across 15 states. The majority Employees: +/- 7,500 of their restaurants are in California, Oregon and Washington. Website: www.DelTaco.com Del Taco also operates in other western states (including Arizona, Colorado, Idaho, Montana, , New Mexico, Oklahoma, Michigan, Texas, and Utah), and has locations sprinkled around areas east of the Mississippi. , Nevada has the most Del Tacos of any single city, and California has the most Del Tacos of any state.

VIEW 2019 ANNUAL REPORT

DEL TACO | Palm Springs, CA | 19 EXECUTIVE SUMMARY

DEL TACO Palm Springs, CA

DEL TACO | Palm Springs, CA | 20 Actual Property EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

• Palm Springs Overview • The Coachella Valley Riverside County Overview Demographics

-- PALM SPRINGS OVERVIEW --

Palm Springs is a city in Southern California that’s known for its hot springs, golf courses, trendy hotels and spas, and of course, it’s seemingly endless summer. It’s a popular spot for SoCal residents looking for a weekend getaway, and it’s also a frequented tourist destination for visitors who want to lay out in the sun. Palm Springs lies on the western edge of the Coachella Valley in central Riverside County approximately 107 miles east of Los Angeles. It is within the ecological area known as the Colorado Desert and is 487 feet above sea level. Rising behind the downtown is the impressive Mt. San Jacinto, elevation 10,831 feet. Palm Springs covers a geographical area of 96 square miles with well-established neighborhoods. Recently there has been a fascination with mid-century modern architecture - something Palm Springs is proud to have as part of its mix of eclectic design styles. Because it is only a two-hour drive from Los Angeles, Orange and San Diego counties, there are a large number of second homes in Palm Springs. The permanent population was estimated to be 48,518, with another 27,000 to 30,000 people living in the City in the winter, bringing the total population to almost 80,000 residents during the winter season. Palm Springs offers a laid-back vibe and year-round perfect weather that have enticed sun-seekers and celebrities for a century. Midcentury devotees fall in love with the butterfly rooflines that dot the horizon and historic neighborhoods boasting more colorful, Instagram-worthy doors that you can count. And, compared to cities such as Los Angeles and San Diego, where the median property values are in the high $500s and increasing every day, living in Palm Springs is considerably more affordable, where the median property value is in the mid-$300,000’s. The Palm Springs Aerial Tramway—the world’s largest rotating tram car—travels over two-and-one-half miles along the breathtaking cliffs of Chino Canyon, transporting riders For the nature lover, outdoor adventure awaits in the Indian Canyons, where miles of trails meander through palm oases, across trickling mountain to the pristine wilderness of the Mt. San Jacinto State Park. During your approximately streams, and beneath crystal-clear waterfalls. ten-minute journey, tram cars rotate slowly, offering picturesque and spectacular vistas of the valley floor below. Once you reach the Mountain Station—elevation 8,516 feet— enjoy two restaurants, observation decks, natural history museum, two documentary According to Curbed, real estate in the theaters, gift shop and over 50 miles of hiking trails. city has become so popular over the past 5 years that home values have increased approximately 50 percent. From vacation homes and second homes to even a complete relocation,many homebuyers are now considering the move to Palm Springs.

https://www.neighborhoods.com/blog/whats-it-like-to-live-in-palm-springs

Palm Springs has become a miniature version of Hollywood and a rival to Sundance, Utah with the annual Palm Springs International Film Festival every January and the Palm Springs International Short Film Festival (or ShortFest) held in August, at the historic Plaza Theatre. Started in 1989, it is run by the Palm Springs International Film Society. The festival regularly attracts around 135,000 people, with some 70% coming from outside of the Coachella Valley, including Canada and Europe. It is noted for its Award Ceremonies where such actors as Christian Bale, Brad Pitt, Clint Eastwood, Sean Penn, Dustin Hoffman, Anne Hathaway, Allison Janney, Brie Larson and Leonardo DiCaprio have appeared.

DEL TACO | Palm Springs, CA | 21 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Palm Springs Overview • The Coachella Valley • Riverside County Overview Demographics

-- THE COACHELLA VALLEY --

The Coachella Valley was originally a popular destination for snowbirds - people who live in cold climates and seek out warmer weather during the winter. In recent years, it has become known for a number of annual events, including the Coachella Valley Music and Arts Festival, the Stagecoach Country Music Festival, and the Riverside County Fair and National Date Festival, all held in Indio. Other events include the Palm Springs Modernism Week, Palm Springs International Film Festival, the ANA Inspiration and Desert Classic golf tournaments, and the Indian Wells Masters tennis tournament. In addition to Palm Springs and the area’s largest city Indio, the valley is home to the resort cities of Cathedral City, Indian Wells, La Quinta, Palm Desert, and Rancho Mirage. Because it is a major winter destination, the valley’s population fluctuates from almost 500,000 in April to around 200,000 in July and around 800,000 by January. It is estimated that 3.5 million conventioneers and tourists visit the valley’s cities each year.

With more golf courses than any other region in California, Coachella Valley is the most popular golf vacation destination in California. Roughly 125 golf courses blanket the area, making it one of the world’s premier golf destinations and the most popular golf vacation destination in California.The area is also home to the PGA Tour’s Humana Challenge in partnership with the Clinton Foundation ECONOMY BASED ON TOURISM, AGRICULTURE, HEALTH CARE & REAL ESTATE DEVELOPMENT (formerly the Bob Hope Chrysler Classic), the LPGA’s ANA Inspiration and the Canadian Tour’s Millions of visitors travel to the Coachella Valley every year, making tourism the largest employer and Desert Dunes Classic the number one contributor to the local economy. With an estimated 12 million visitors on average, tourism generates over $4 billion per year, employing over 19,000 people and bringing in sales tax of approximately $486 million. Coachella Valley’s agricultural industry is the second largest contributor to the local economy. It employs approximately 12,000 people and produces nearly $1 billion in agricultural products each year. The Coachella Valley is the primary date-growing region in the , responsible for nearly 95 percent of the nation’s crop. In addition, the area supplies over 50% of the county’s fruits and vegetables, especially table grapes, citrus fruits such as lemons, limes, oranges and grapefruit; onions and leeks; and peppers. The healthcare industry is the second largest employer in the Coachella Valley, providing employment for nearly 14,000 people in medical specialties Pulmonology, Cardiology, Orthopedics, Neurology, and Gastroenterology. Major facilities in the area include Desert Regional Medical Center, Eisenhower Medical Center, Hazelden Betty Ford Center, and John F. Kennedy Memorial Hospital. As the demand for medical services increases, the industry continues to emerge as a major contributor to the region’s economy. Housing, commercial and renewable power developments are on the rise in Coachella Valley, increasing the economic impact from the construction industry, which employs over 6,700 people, and provides the fifth-highest employment for valley residents. The region’s 275-day average of sunny days makes it an ideal location for clean technology developments in solar energy. The San Gorgonio Pass is the second windiest place in the country. Cool coastal air is forced through the pass and mixes with the hot desert air, making the San Gorgonio Pass one of only three ideal places in California for steady, wind-generated electricity. At the San Gorgonio Pass Wind Farm, thousands of huge wind turbines spread across the desert and hills on either side of the highway greet visitors as they approach the crest of the pass and have become somewhat of a symbol of the area.

Source: GrowingCoachellaValley.org, Wikipedia DEL TACO | Palm Springs, CA | 22 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Palm Springs Overview The Coachella Valley • Riverside County Overview • Demographics

-- RIVERSIDE COUNTY OVERVIEW --

Palm springs is part of Riverside County, which is located in the southeast part of California. Riverside County’s population is estimated to be 2,517,830, making it the 4th-most populous county in California and the 11th-most populous in the United States. With rivers, mountain peaks, deserts and fertile valleys, Riverside County offers diversity that few locations can match. The two million residents in Riverside County take advantage of its affordable housing, nearby beaches, mountains, hiking and bike trails, the Wine Country near Temecula and resorts that offer oases in the desert. Each year, millions visit the county to take advantage of the glorious desert winter, attend the Riverside County Fair and National Date Festival, the Balloon and Wine Festival, the Palm Springs International Film Festival, the Coachella and Stagecoach mega-concerts, the Paribas Open at the Indian Wells Tennis Center and the Humana Challenge, the golf tournament formerly known as the Bob Hope Classic. All those, combined with a rich cultural heritage and frontier history, make Riverside County a great place live, work or visit.

EXPANDING ECONOMY • MAJOR TRANSPORTATION CORRIDOR • ONE OF FASTEST GROWING REGIONS IN CALIFORNIA Riverside County is expanding its economy, working to make Riverside County as business-friendly as possible and using health and recreations strategies to make the county a healthier place for residents. The county is working to diversify beyond the housing industry that has driven the region’s economy for years. The county’s transportation corridors – highways, airports and rail lines – support Southern California’s shipping connection to Asia, a vital link for California and the rest of the nation. Interstate 10 traverses the entire county from east to west, and Interstates 15 and 215 connect Riverside County with San Diego County and San Bernardino County. Highway 60 and 91 link Riverside County to Los Angeles and Orange Counties. Highway 86 is part of the North American Free Trade Agreement/NAFTA Corridor providing easy access to Imperial County and Mexico. Highways 74, 371, and 111 link cities within the county making the mountain and desert communities easily accessible. Large numbers of Los Angeles area workers have moved to the county in recent years to take advantage of relatively affordable housing. Along with neighboring San Bernardino County, it was one of the fastest growing regions in the state prior to the recent changes in the regional economy. In addition, smaller, but significant, numbers of people have been moving into Southwest Riverside County from theSan Diego-Tijuana metropolitan area. The cities of Temecula and Murrieta account for 20% of the increase in population of the county between 2000 and 2007, and they continue to grow by nearly 2% annually. The main economic activities include a host of diversified light manufacturing, international trade and offices of overseas companies. Although rising rapidly, costs of living and housing remain relatively affordable for comparable areas in Los Angeles and Southern California. The area is now facing many of the same issues confronting Los Angeles as a whole- overcrowding, sprawl, poor air quality, and long freeway commutes. Bottom line: this area offers many Southern California advantages while bringing the negatives in somewhat smaller doses.

DEL TACO | Palm Springs, CA | 23 SUMMARY PROFILE 2000-2010 Census, 2020 Estimates with 2025 Projections Calculated using Weighted Block Centroid from Block Groups

Lat/Lon: 33.8519/-116.5504 RS1 2444 N Palm Canyon Dr 1 mi radius 3 mi radius 5 mi radius PalmSUMMARY Springs, PROFILECA 92262 2000-2010 Census, 2020 Estimates with 2025 Projections EXECUTIVE SUMMARY PROPERTY INFORMATION 2020 EstimatedTENANT Population OVERVIEW AREA0 T OVERVIEW8,221 29,130 63,657 Calculated using Weighted Block Centroid from Block Groups 2025 Projected Population 0 T 9,318 31,808 68,265 Palm Springs Overview The Coachella Valley Riverside County Overview • Demographics • 2010 Census Population 0 T 7,496 27,101 58,203 Lat/Lon:2000 33.8519/-116.5504 Census Population 0 T 6,912 25,976 52,877 -- DEMOGRAPHICS -- RS1 Projected Annual Growth 2020 to 2025 - 2.7% 1.8% 1.4% 2444 N Palm Canyon Dr POPULATION - 0.9% 0.6% 1.0% Historical Annual Growth 2000 to 2020 1 mi radius 3 mi radius 5 mi radius Palm Springs,2020 Median CA Age 92262 3 Miles45.3 5 Miles 46.3 10 Miles 45.8

2020 Estimated HouseholdsPopulation 0 T 4,0078,221 14,41629,130 29,49163,657 2025 Projected Population 0 T 9,318 31,808 68,265 POPULATION SNAPSHOT 2025 Projected Households 0 T 4,498 15,659 31,607 2010 Census HouseholdsPopulation 0 T 3,6317,496 13,21027,101 26,53358,203 • The permanent population of Palm Springs is estimated to be 48,518. 2000 Census HouseholdsPopulation 0 T 3,0706,912 11,75225,976 23,11852,877 • Palm Springs has seen its population grow by 6.7% since 2010 - 2.7% 1.8% 1.4% Projected Annual Growth 2020 to 2025 - 2.5% 1.7% 1.4% HOUSEHOLDS POPULATION • The median age in Palm Springs is 54.8. POPULATION - 0.9% 0.6% 1.0% Historical Annual Growth 2000 to 2020 - 1.5% 1.1% 1.4% • There are over 2.57 million people within a 50-mile radius of Palm Springs. 2020 MedianEstimated Age White - 63.8%45.3 65.6% 46.3 67.1% 45.8 2020 Estimated HouseholdsBlack or African American 0 T- 4,0079.7% 14,416 6.9% 29,491 5.3% 20252020 ProjectedEstimated HouseholdsAsian or Pacific Islander 0 T- 4,4985.2% 15,659 5.5% 31,607 6.4% HOUSING SNAPSHOT 20102020 CensusEstimated Households American Indian or Native Alaskan 0 T- 3,6311.1% 13,210 1.2% 26,533 1.2% 2000 Census Households 0 T- 20.1%3,070 11,752 20.8% 23,118 20.0% • The median price in September was $510,000, which is up 26% over a year ago AND RACE ETHNICITY 2020 Estimated Other Races in the greater Palm Springs area. This is the largest percentage price increase Projected2020 Estimated Annual Hispanic Growth 2020 to 2025 - 34.3%2.5% 36.0% 1.7% 39.8% 1.4% HOUSEHOLDS since 2012. The median attached home price in September was $305,000, up HOUSEHOLDS Historical Annual Growth 2000 to 2020 - 1.5% 1.1% 1.4% 12.5%.. 2020 Estimated Average Household Income $0 T $87,296 $90,397 $94,006 • Approximately 63.9% of residents in Palm Springs own their home, which is in 2020 Estimated WhiteMedian Household Income $0 T- $64,59363.8% $63,284 65.6% $64,833 67.1% - 9.7% 6.9% 5.3% line with the national average. INCOME 2020 Estimated BlackPer Capita or African Income American $0 T $42,577 $44,858 $43,640 - 5.2% 5.5% 6.4% • There are approximately 24,000 households in Palm Springs. 2020 Estimated ElementaryAsian or Pacific (Grade Islander Level 0 to 8) - 4.7% 4.4% 5.8% - 1.1% 1.2% 1.2% 2020 Estimated SomeAmerican High Indian School or (GradeNative AlaskanLevel 9 to 11) - 5.8% 6.4% 6.5% - 20.1% 20.8% 20.0% RACE AND RACE ETHNICITY 2020 Estimated HighOther School Races Graduate - 20.1% 20.6% 21.5%

- 34.3% 36.0% 39.8% warranty. or representation without provided is herein information The reliable. be to deemed sources government and private from data using produced was report This RACE & ETHNICITYRACE 2020 Estimated SomeHispanic College - 23.9% 24.0% 23.7% ECONOMY SNAPSHOT 2020 Estimated AverageAssociates Household Degree Only Income $0 T- $87,2967.5% $90,397 7.6% $94,006 7.7% (AGE 25+) EDUCATION • The median household income in Palm Springs was $45,497 (2018). 2020 Estimated MedianBachelors Household Degree Only Income $0 T- $64,59323.3% $63,284 21.9% $64,833 20.4%

INCOME 2020 Estimated PerGraduate Capita Degree Income $0 T- $42,57714.7% $44,858 15.1% $43,640 14.4%

• The Coachella Valley has a labor force of 188,000 people. INCOME • The largest industries in Portage County are Tourism, Agriculture, Health Care 2020 Estimated ElementaryTotal Businesses (Grade Level 0 to 8) 0 T- 4.7%630 2,796 4.4% 3,959 5.8% & Real Estate/Clean Tech Development. 2020 Estimated SomeTotal Employees High School (Grade Level 9 to 11) 0 T- 5,4345.8% 21,355 6.4% 30,718 6.5% 2020 Estimated EmployeeHigh School Population Graduate per Business - 20.1%8.6 20.6%7.6 21.5%7.8 This report was produced using data from private and government sources deemed to be reliable. The information herein is provided without representation or warranty. or representation without provided is herein information The reliable. be to deemed sources government and private from data using produced was report This BUSINESS BUSINESS 2020 Estimated ResidentialSome College Population per Business - 23.9%13.1 24.0% 10.4 23.7% 16.1

©2020, Sites2020 USA, Chandler,Estimated Arizona, Associates 480-491-1112 Degree Only page 1 of 1 Demographic- Source: Applied7.5% Geographic Solutions 7.6% 11/2020, TIGER Geography 7.7% (AGE 25+) EDUCATION 2020 Estimated Bachelors Degree Only - 23.3% 21.9% 20.4% 2020 Estimated Graduate Degree - 14.7% 15.1% 14.4%

2020 Estimated Total Businesses 0 T 630 2,796 3,959 DEL TACO | Palm Springs, CA | 24 2020 Estimated Total Employees 0 T 5,434 21,355 30,718 2020 Estimated Employee Population per Business - 8.6 7.6 7.8

BUSINESS 2020 Estimated Residential Population per Business - 13.1 10.4 16.1

©2020, Sites USA, Chandler, Arizona, 480-491-1112 page 1 of 1 Demographic Source: Applied Geographic Solutions 11/2020, TIGER Geography EXCLUSIVELY LISTED BY RYAN BARR RYAN BENNETT Principal Principal 760.448.2446 760.448.2449 & [email protected] [email protected] BARR BENNETT NETLEASEDINVESTMENTS DRE Lic#01338994 DRE Lic#01826517 A Lee & Associates Team

Lee & Associates hereby advises all prospective purchasers of Net-Leased Invesment property as follows:

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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