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OFFERING MEMORANDUM

McKINNEY

Absolute NNN Lease Third-Fastest Growing City in the U.S. CONFIDENTIALITY AND DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap Real Estate Investment Services of Florida, Inc. (“Marcus & Millichap”) and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not 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 the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. NON-ENDORSEMENT NOTICE Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

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Phoenix Springerville8 Columbia Lawton Decatur Gainesville Socorro Myrtle Beach Tijuana Yuma Mesa Globe Clovis Hot Little Rock Gadsden Springs Tupelo Athens Orangeburg BAJA CALIF.Location Map...... 9 Ardmore Atoka Pine Bluff Atlanta North Anniston Augusta Casa MISSISSIPPI Charleston Roswell Lubbock Guthrie Aerial Map...... Grande Safford 10 Greenwood Birmingham Charleston Alamogordo Tuscaloosa Macon McKinney Texarkana Tucson Lordsburg Artesia El Dorado Tenant Summary...... Benson 11 Deming Opelika Las Cruces Lamesa Ft. Worth Minden Montgomery Columbus Carlsbad Abilene Monroe Meridian Savannah Site Plan...... Nogales 14 El Paso Arlington Longview Douglas Big Spring Shreveport Cordele Odessa Jackson Grove Ciudad TEXAS LOUISIANA Hill Albany GEORGIA Brunswick Location Highlights...... 16 Waycross Juarez Pecos Evergreen Dothan Van Horn San Angelo Nacogdoches Hattiesburg Natchez ALABAMA Demographics...... SONORA 17 Waco Valdosta Alexandria Jacksonville CHIHUAHUA Fort Stockton Mobile Baton Tallahassee Hermosillo Rouge Junction Huntsville Pascagoula Pensacola Austin Biloxi Panama Gainesville Beaumont Lake Lafayette City Daytona Beach Charles Ocala New Orleans Cape Canaveral Del Rio Houma Orlando Brooksville Galveston Chihuahua Melbourne Victoria Tampa Fort Pierce George FLORIDA West St Petersburg COAHUILA West Sarasota Palm Beach Corpus Christi Laredo Fort Fort Myers Lauderdale

Los Mochis Naples Miami NUEVO McAllen LEON Brownsville Matamoros Monterrey Key West

INVESTMENT SUMMARY

1820 W UNIVERSITY DR, MCKINNEY, TX 75069 PRICE: $3,450,000 CAP: 5.99% RENT: $206,607*

OVERVIEW ANNUALIZED OPERATING DATA

Price $3,450,000 Lease Term Annual Rent Gross Leasable Area (GLA) 5,489 SF Current Rent $206,607 Lot Size (approx) 1.65 Acres 10/1/2023 $227,268 Net Operating Income $206,607 Option 1 FMV CAP Rate 5.99% Option 2 FMV Year Built 1993 / 1995 Option 3 FMV Option 4 FMV LEASE ABSTRACT * Rent forgiven from April-June 2020 (Covid-19 response). New adjusted rent to Lease Type NNN commence July 2020. Original Lease Term 20 Years Strong historical rent:sales ratio. Lease Term Commenced 10/01/2008 Lease Expiration 9/30/2028 Remaining Lease Term 8.4 Years Renewal Options 4x5 Increases 10% yr 2023, then FMV during options Landlord Obligation None At All

5 INVESTMENT HIGHLIGHTS

t 8.4 years remaining on base term of 20 year NNN lease. No landlord responsibilities. t Strong historical tenant performance with 7.75% rent:sales ratio. A secure and stable operator, offering peace of mind ownership. t Next rent escalation in 3-years, adjusts ROI to 6.58% against list price. Strong return. t Outpad to an Academy Sport anchored center, and shadow anchored by Sam’s Club. t Highly Populated Area with around 137,890 people within a Five-Mile Radius. t Just off the U.S. Highway 75, one of the most populous highways in the region. t Strategically located near Walmart Supercenter.

137,890 110,733 TOTAL AVERAGE POPULATION HOUSEHOLD WITHIN 5-MILE INCOME WITHIN RADIUS 5-MILE RADIUS

32,000 VPD - W UNIVERSITY DR 20,435 VPD - N CENTRAL EXPY 6 INVESTMENT HIGHLIGHTS NNN No landlord obligations Better than market return on investment This 10 year NNN Applebee’s lease offers 8.3 years remaining on the base term followed by two 5-year options.

Located 0.8 miles away from Collins College, a community college with over 55,000 students.

Close proximity to other retail Including McDonald’s, Wendy’s, Long Jon Silver’s, Arby’s, Burger King, Jack in the Box, and many more. Large traffic counts with Affluent area where average 27,000 VPD on W University Drive household income exceeds and 20,435 VPD on $110,733 within a 5-mile radius N Central Expy from the site.

7 LOCATION OVERVIEW

McKINNEY, TEXAS

McKinney, 32 miles from Dallas, is a unique and diverse suburb in McKinney is filled with tourism opportunities and sightseeing. Erwin Texas. It serves as the county seat for Collin County and is Collin Park, a seven-mile hiking and biking trail is filled with picnic pavilions, County’s second-largest city, after Plano. The city was named after playgrounds, and campgrounds within its 212 acres. This popular Collin McKinney, the signer of the Texas Declaration of Independence. spot is the perfect place to enjoy with the family on the weekend. The As of May 2017, the city was the third-fastest growing city in the U.S. In Heard National Science Museum & Wildlife Sanctuary is another local 2014, it was named #1 by Money Magazine as “Best Places to Live” in favorite. It introduces children to the fundamentals of biology, ecology, America. McKinney is currently part of the Dallas-Fort Worth metroplex and geology through the museum’s interactive Living Lab, a 289-acre and has over a population of over 181,330 people. The TX-75 highway, wildlife sanctuary. The site also has a seasonal exhibit, called Dinosaurs which runs through McKinney, begins in Dallas and heads north to the Live!, which features robotic dinosaurs. Or, visit McKinney’s Historic Oklahoma state line. The U.S. Route 380 also runs through McKinney Downtown. It offers exciting festivals and nightlife, fine and casual and is an east-west highway, connected the city to other parts of dining, unique shopping, and much more. The McKinney Performing the U.S. Arts Center, located in downtown, is the perfect place to attend a play or see exciting musical entertainment. McKinney offers big city resources with a hometown lifestyle, creating a great environment for doing business. Collin County’s workforce of The city is known for being unique by nature. Recently, McKinney about 400,000 coupled with McKinney’s own Collin’s College creates launched the #IAMUNIQUEBYNATURE campaign to share this essence an excellent academic environment and workforce. The McKinney with others. A quick visit to Bonnie Wenk Park and you’ll see the bright National Airport gives the city access to virtually all business aviation yellow letters spelling out “UN_QUE.” People, and even dogs, can and many commercial aviation fleet aircraft. The McKinney Economic stand in the place of the missing “I” for a fun picture. The attraction Development Corporation is also a great resource for doing business in shows visitors and residents what the city stands for and displays the McKinney. It offers aggressive incentives for qualifying companies and city’s importance it places on nature and individuality. Whether you are has strong business retention and expansion programs for companies in McKinney for a quick stroll in Erwin Park or looking to start your next who relocate to the city. business, it’s unique environment and growing population make it the perfect place to meet everyone’s needs. 8 Q B

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McKinney North High School

McKinney Police Department

Collin N CENTRAL EXPY – 20,435 VPDUS HWY 75 – 43,850 VPD N CENTRAL EXPY – 20,435 VPD College

W UNIVERSITY DR – 27,000 VPD

Raytheon McDonald’s Company

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McKinney Independent School District

10 TENANT SUMMARY

APPLEBEE’S ANALYTICAL OVERVIEW Dine Brands’ top line and margins continue to be positively impacted delivery options to drive traffic, though the latter comes with the risk of by its acquisition of 69 Applebee’s units from a franchisee in December eroding margins due to third party delivery fees and higher labor costs. 2018. Management plans to re-franchise these units and return to As with the first quarter, gross margin declined 100 basis points due a 100% franchised model, but has no timeframe for when this may to lower-margin contributions from the Company-operated restaurants, occur. In the meantime, contributions from the now Company-operated while SG&A margin improved 380 basis points as a result of the restaurants pushed the consolidated top line up 23.6% in the second leveraging impact of the strong top line growth. In total, EBITDA grew quarter; however, revenues would have risen a more modest 5% 36.8% and 270 basis points on a margin basis to a healthy 28.5%. on an apples-to-apples comparison. The Company’s two banners, During the second quarter, the Company refinanced substantially all Applebee’s and IHOP, continue to trend in different directions, with of its long-term debt by issuing $1.30 billion in new senior notes (see Applebee’s continued restaurant closures only partially offset by below). The transaction did not reduce the Company’s total debt, its IHOP openings; franchisees closed 45 net restaurants across both balance sheet is fairly leveraged with debt to EBITDA at 5.4x at quarter- banners year-over-year. This trend extended to same-restaurant sales, end. Liquidity appears sufficient to handle expected capex and working as Applebee’s broke a streak of six consecutive quarters of positive capital needs, backed by $127.6 million in cash and $222.8 million in comps with a 0.5% decline in the second quarter, and IHOP’s comps revolver availability. Looking forward, management reduced its fiscal grew 2%. Both banners are struggling with declining customer traffic, 2019 guidance of 2% to 4% comp growth for both banners to flat to but IHOP has benefited from a favorable shift in product mix and 1.5% growth at Applebee’s and 1% to 3% at IHOP, citing the weaker relatively more successful promotional activity to increase average than expected year-to-date performance. check. Management is emphasizing new menu items and expanding

11 APPLEBEE’S

GLENDALE, CA HEADQUARTERS

28,000 (last reported 2013) 1,936

EMPLOYEES LOCATIONS

DINE BRANDS GLOBAL DIN TICKER: NYSE PARENT CO

$2.5B $81B REVENUE NET INCOME

12 TENANT SUMMARY

APPLEBEE’S RESPONSE TO COVID-19

AN IMPORTANT MESSAGE ON THE CORONAVIRUS

To Our Guests,

Thank you for trusting us throughout this very challenging time. The Closely monitoring the situation and following guidance by the CDC Applebee’s brand has been around for 40 years, and we truly value to do all we can to protect our guests and team members and to help your loyalty and patronage. Our number one priority continues to be prevent the spread of the virus. the health and well-being of our teams, guests and the neighborhoods we serve. To that end, I wanted to speak with you directly and share the If you prefer to dine at home, we offer Applebee’s Carside To Go where precautionary steps we are taking to ensure a safe dining environment. we’ll bring a delicious meal directly to your car, as well as Applebee’s Applebee’s has always taken great pride in our exceptional food safety Delivery through applebees.com and our delivery partners. We are and service standards. In response to the threat of COVID-19, we are continuing to work closely with our third-party delivery partners to taking additional precautionary steps to enhance protections including: ensure that food is delivered safely and promptly. Ramping up the frequency of cleaning, sanitizing and disinfecting services in restaurants including, frequently cleaning all high-touch Once again, thank you for being our loyal Applebee’s guests. It is a surfaces and areas, such as doors, door handles, seats, booths, genuine privilege to serve you and our neighborhoods. condiments and tabletop technology, as well as frequent cleaning of restrooms throughout the day and a full cleaning of our restaurants John Cywinski each night. President, Applebee’s

Educating our team members on preventative measures as provided by the Centers for Disease Control (CDC), including heightened hand washing procedures and requiring team members who do not feel well to stay at home.

13 SITE PLAN

W UNIVERSITY DRIVE

14 15 Aubrey Chambliss Blue Frognot Valdasta Ridge Lane Celeste

Krugerville Fayburg 69 377 Melissa Kingston Rhea Mills Snow Hill Cooper Parvin Verona Creek Bloomdale Altoga

377 Providence Cross Village Prosper 380 Roads Lincoln Navo 380 Denton Park New Hope Merit Mayhill Rockhill Aero Country Foot Collin Airport Climax Carter Oak Point McKinney McKinney Municipal Airport Milligan Princeton Shady 380 LOCATION HIGHLIGHTS Shores Little Elm Farmersville Corinth Lowry Lakewood Hackberry Frisco Crossing 380 Floyd Village Camp Fairview Dallas Wetsel Culleoka Lavon Hickory Lake Lake Forest Creek Lewisville Dallas Lebanon Grove Winningkoff Lavon Beach Lake Estates Eastvale Yucote Clinton Copper Acres Lavon Shores The Trinity Canyon Allen Park Branch Estates Lantana Colony Lolaville Highland Lucas Village Clear Lake Camey Beverly Copeville Bartonville Hill Deep Water Josephine Caddo Double Oak Mills Parker Point Estates Caddo Mills McKINNEY, TX 77 75 Municipal Airport Lewisville St Paul Flower Nevada Mound Shepton Lavon 3RD FASTEST GROWING CITY IN THE U.S. Hebron Plano 34.5 MilesWylie from Murphy Burrow Air Park- Dallas Dallas, TX Millwood Renner Trinity Mills Addison Coppell Carrollton Airport Sachse Royse City Richardson Pleasant Valley Liberty Addison Naaman Grove Shiloh Southlake Ralph m Hall Fate Grapevine 35 Buckingham Rockwall Airport Mobile Union Inwood Rockwall City Valley Old Union Farmers Branch 635 Garland Audelia Dalrock Gribble Bouchard Rowlett 67 Minters Blackland Munson Chapel Dallas/Ft Worth Meaders Colleyville Dfw Int'l Airport Airport White Centerville Oldham Las Rock Colinas Zacha Lake Ray Junction Dallas Love Hubbard Rose Hill Field University McLendon Park Bedford Euless McLendon- Chisholm Rawlins Heath Highland Reinhardt Chisholm Sowers Park Poetry 30 Strategically located Strong visibility for Tarrant Irving New Hope Shady Grove Airpark Tripp East just off the multiple points Eagle Ford Mesquite Dallas Sunnyvale 80 U.S. Highway 75 of ingress/egress

Arcadia Lawrence Grand Park Forney Prairie 77 Cockrell Sargent Arlington Hill Oak Cliff Terrell Balch Mesquite 80 Lakeland Springs Metropolitan Heights Airport Elmo Pantego Fruitdale Lakeview Lawson Dalworthington Ledbetter Gardens Dallas 45 Johnsons Grand Prairie Hills Terrell Executive Talty Station Municipal Airport Airport Rylie Municipal 20 Airport Southland 67 MAJOR EMPLOYERS Oak Ridge Acres Florence Kleberg 175 Hill Arlington Bobwyn Municipal Airport Sublett Duncanville HutchinsM c KINNEY, SeagovilleTX Woodland Post Oak Hills Bend City maps4news.com/©HERE Crandall Abner Raytheon Space & Airborne Systems 2,725

Collin College 2,631

MISD 2,500

Torchmark 1,640

Encore Wire 1,350 As of May 2017, The city was named #1 City of McKinney 1,271 the city was the third-fastest by Money Magazine as Medical City McKinney 1,000 growing city in the U.S. “Best Places to Live” in America.

Baylor 738

Timber Blinds 450

Watson & Chalin 350

16 DEMOGRAPHICS /McKINNEY, TX 1 37, 8 9 0 Total Population Within 5-Mile Radius

$110,733 $82,272 Average Household Income Median Household Income Within 5-Mile Radius Within 5-Mile Radius

47,978 161.1% Total Households Within From 2000 5-Mile Radius

17 18 POPULATION 1 MILE 3 MILES 5 MILES HOUSEHOLDS BY INCOME 1 MILES 3 MILES 5 MILES

2023 Projection 10,006 62,401 137,890 $200,000 or More 2.26% 5.29% 9.75%

2018A Estimate 9,234 56,574 124,911 $150,000 - $199,999 4.39% 6.57% 9.87%

Growth 2018A - 2023 8.36% 10.30% 10.39% $100,000 - $149,999 11.46% 14.87% 21.33%

2000 Census 5,657 32,184 54,538 $75,000 - $99,999 13.20% 11.69% 12.91%

2010 Census 7,621 45,155 97,871 $50,000 - $74,999 21.42% 17.70% 15.72%

Growth 2000 - 2010 34.73% 40.30% 79.46% $35,000 - $49,999 17.32% 14.54% 10.98%

$25,000 - $34,999 10.11% 8.97% 6.15%

$15,000 - $24,999 12.12% 10.40% 6.80%

HOUSEHOLDS 1 MILES 3 MILES 5 MILES $10,000 - $14,999 2.75% 4.17% 2.51%

2023 Projections 3,358 20,798 47,978 Under $9,999 4.96% 5.81% 3.98%

2018A Estimate 3,064 18,686 42,846

2018A Est. Average Household Income $68,215 $83,000 $110,733 Growth 2018A - 2023 9.59% 11.30% 11.98%

2018A Est. Median Household Income $52,752 $57,026 $82,272 2000 Census 1,865 10,844 18,373

2018A Est. Per Capita Income $23,030 $27,939 $38,232 2010 Census 2,493 14,635 33,003 * Growth 2000 - 2010 33.69% 34.96% 79.63%

19 McKINNEY TEXAS

LIOR REGENSTREIF SENIOR MANAGING DIRECTOR INVESTMENTS SENIOR DIRECTOR, NET LEASED PROPERTIES GROUP ENCINO OFFICE Tel: (818) 212-2730 Fax: (818) 212-2710 [email protected] License: CA 01267761 SERI BRYANT ASSOCIATE ENCINO OFFICE Tel: (818) 212 -2655 Fax: (818) 212-2710 [email protected] License: CA 02042062