Dunkin’ Donuts and corporate mattress firm

Actual Photo of Subject Property Currently Under Construction

For more info on this opportunity please contact: Two tenant strip center JOHN ANDREINI CHRIS KOSTANECKI [email protected] | (415) 274-2715 [email protected] | (415) 274-2701 with drive thru CA BRE# 01440360 CA BRE# 01002010 RICK SANNER BOB SANNER 2531 East Morris blvd morristown, TN 37813 [email protected] | (415) 274-2709 [email protected] | (415) 274-2717 CA BRE# 01792433 CA BRE# 00869657 In conjunction with TN Licensed Broker: Capital Pacific collaborates.Click here to meet the rest of our San Francisco team. Doug Stanfield, The Stanfield York Company (404) 255-8066 [email protected] Property Signage

TWO TENANT NET LEASED STRIP CENTER WITH DRIVE-THRU Investment Highlights ON MAIN RETAIL THOROUGHFARE OF MORRISTOWN, TN AND LOCATED DIRECTLY ACROSS FROM COLLEGE SQUARE MALL

PRICE: $2,238,875 CAP: 6.75%

RENTABLE SF...... 5,704 SF PRICE PER SF...... $392.51 LAND AREA...... 41,207 SF YEAR BUILT/RENOVATED. . . . . 2008/2014

INVESTMENT HIGHLIGHTS Located across the street from College Square Mall which features more than 50 specialty shops and is anchored by Belk, Kohl’s, JCPenney, Goody’s, Carmike Cinema 12, and T.J Maxx Newer construction building Dunkin’ Donuts has very rare drive-thru in strip center Dunkin’ Donuts is paying more than 50% below recently signed Mattress Firm lease

TENANT HIGHLIGHTS Mattress Firm had 2013 revenues of $1.2 billion and is the largest bedding retailer in the United States (see page 6 and 7 for more info) Mattress Firm has $964 million in net assets as of 7/29/14 Dunkin’ Donuts is the world’s leading baked goods and coffee chain Dunkin’ Donuts has system wide sales in excess of $8.3 billion (see page 6 for info on Dunkin guarantor/franchisee) LEASE HIGHLIGHTS Dunkin’ Donuts extended lease early to run through 2024 Rental increases in the primary term of both leases - 2.75% annual increases for Dunkin Donuts Brand new 10 year corporate Mattress Firm lease DUNKIN’ DONUTS & MATTRESS FIRM | 2 Landlord responsible for roof and structure Rent Roll

Actual Rent Monthly Base Monthly Annual Tenant Sq. Ft. Percent of GLA Lease Term Annual Rent Rent Rent/SF Rent/SF

Mattress Firm 4,064 71.25% 11/1/2014 10/31/2019 $9,991 $2.46 $29.50 $119,888 11/1/2019 10/31/2024 $10,990 $2.70 $32.45 $131,877 Option 1 11/1/2024 10/31/2029 $12,087 $2.97 $35.69 $145,044 Option 2 11/1/2029 10/31/2034 $13,296 $3.27 $39.26 $159,552

Dunkin' Donuts - Franchisee 1,640 28.75% 12/1/2008 11/30/2009 $1,867 $1.14 $13.66 $22,404 (See page 6 for more info) 12/1/2009 11/30/2010 $2,000 $1.22 $14.63 $24,000 12/1/2010 11/30/2011 $2,134 $1.30 $15.61 $25,608 12/1/2011 11/30/2012 $2,267 $1.38 $16.59 $27,204 12/1/2012 11/30/2013 $2,400 $1.46 $17.56 $28,800 Early Extension 12/1/2013 11/30/2014 $2,534 $1.55 $18.54 $30,408 12/1/2014 11/30/2015 $2,603 $1.59 $19.05 $31,236 12/1/2015 11/30/2024 Annual 2.75% Increases Option 1 12/1/2024 11/30/2028 Annual 2.75% Increases Option 2 12/1/2023 11/30/2028 Annual 2.75% Increases Current Totals: 5,704 100.00% Totals $12,525 $151,124 Occupied 5,704 100.00%

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

DUNKIN’ DONUTS & MATTRESS FIRM | 3 Dunkin’ Donuts Drive Thru

Income & Expense

PRICE $2,238,875

Price Per Square Foot: $392.51

Building Size: 5,704

Capitalization Rate: 6.75%

Lot Size (SF): 41,207

STABILIZED INCOME Per Square Foot

Rent $26.49 $151,124

LESS Per Square Foot

Taxes NN $0.00

Insurance NN $0.00

Total Operating Expenses NN $0.00

EQUALS NET OPERATING INCOME $151,124

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

DUNKIN’ DONUTS & MATTRESS FIRM | 4 Tenant

Founded in 1950 in Quincy, MA, Dunkin Donuts is one of the world’s most recognized brands and is the world’s leading baked goods and coffee chain, selling almost 2.5 million donuts a day and more than 1 billion cups of coffee each year. The original Dunkin Donuts experience DUNKIN’ DONUTS was a single cup of coffee with a donut. Today, Dunkin Donuts offers a wide range of hot and iced coffee, specialty beverages, baked goods IS RANKED #1 IN and an expanding all-day Oven Toasted menu. REGULAR/DECAF/ Dunkin Brands, based in Canton, MA, is home to two of the world’s most recognized brands: Dunkin Donuts and Baskin Robbins. Dunkin FLAVORED COFFEE Brands is renowned for its leadership in the QSR segment, with more than 17,000 global points of distribution and total system wide sales of AND #1 IN DONUTS $8.3 billion. Dunkin Brands is traded on the NASDAQ (DUNK).

Fresco Development Group - Guarantor/Franchisee

Fresco Development Group LLC was started in 2004 as a restaurant development and management company, as of today, it operates 8 Dunkin Donuts stores, 5 in Miami and 3 in Jacksonville, Florida. It currently has additional locations under development in Boca Raton and Jacksonville. In addition, Fresco Development Group owns a donut production facility in Miami that produces donuts and baked goods for the South Florida franchise community. In total it employs over 120 people. In 2013, the group had retail sales of over 7.5 million and $3 million in bakery production sales. The management team includes Scott Ball, Fred Guttenberg and Andrew Faber. Prior to forming FDG, Scott worked in Business Development at Triarc Restaurant Group, a publically held company that owned and operated Arby’s and TJ Cinnamon’s brands. Scott also spent time in the healthcare and sports/entertainment industries. Scott’s current role as CEO is overseeing Finance, Marketing and Human Resources. Mr. Ball has been a member of the Dunkin Donuts Brand Advisory Council, Marketing Steering Committee and Regional Advisory Council. Prior to forming FDG, Fred Guttenberg, formerly of Johnson & Johnson Pharmaceuticals, spent 13 years in training and sales management positions. As President and CDO, his current management role involves all development, training, legal and information technology. Fred has been a member of Dunkin Donuts Information Technology and People Subcommittees.

DUNKIN’ DONUTS & MATTRESS FIRM | 5 Tenants

Mattress Firm (see page 7 for more info) NASDAQ Mattress Firm currently operates over 1,480 locations across 36 states nationwide, which makes it MFRM the largest US bedding retailer. Mattress Firm offers conventional mattresses; specialty mattresses, # OF LOCATIONS including viscoleastic foam mattresses and YuMe sleep system, a revolutionary sleep system made 1,480 of foam produced from coconut oil; and bedding related accessories comprising bed frames, NUMBER OF EMPLOYEES mattress pads, and pillows. The company’s stores carry a broad assortment of national mattress 3,861 brands and its exclusive brands. In 2011, Mattress Firm Holding Corp went public and has shown very strong sales and profit growth. Mattress Firm, as of July 29th 2014, has assets in excess of $964 million and in 2013, Mattress Firm had net sales in excess of $1.2 billion. In September 2014 Mattress Firm announced that it has entered into an agreement to acquire all of the outstanding equity interests in The Sleep Train, Inc., the leading West Coast based bedding specialty retailer, for an aggregate purchase price of $425 million, subject to working capital and other customary adjustments. As further consideration, the Company has agreed to assume certain additional liabilities totaling approximately $15 million. Sleep Train operates approximately 310 specialty mattress retail stores located in California, Oregon, Washington, Idaho, Nevada and Hawaii, and reported net sales of $471 million for the 2013 fiscal year, according to Furniture Today.

Representative Photo

DUNKIN’ DONUTS & MATTRESS FIRM | 6 Mattress Firm Article Excerpts

MATTRESS FIRM TO ACQUIRE SLEEP TRAIN COMPELLING STRATEGIC RATIONALE HOUSTON--(BUSINESS WIRE)-- Mattress Firm Holding Corp. (the “Company”) •Expands footprint into the West Coast, including key strategic markets (NASDAQ:MFRM), the leading specialty retailer of mattresses and related Adds over 310 retail store locations in major markets in California, products and accessories in the United States today announced that it has Washington, Oregon, Nevada, Idaho and Hawaii from a leading market entered into an agreement to acquire all of the outstanding equity interests share player with limited overlap. inThe Sleep Train, Inc., the leading West Coast based bedding specialty retailer, for an aggregate purchase price of $425 million, subject to working capital and Provides customers with great value, convenience and choice. other customary adjustments. As further consideration, the Company has agreed to assume certain additional liabilities totaling approximately $15 million. Sleep •Fortifies Mattress Firm as the leading mattress specialty retailer in the United States Train operates approximately 310 specialty mattress retail stores located in California, Oregon, Washington, Idaho, Nevada and Hawaii, and reported net Pro forma sales approaching $2 billion annually and total enterprise sales of $471 million for the 2013 fiscal year, according to Furniture Today. locations exceeding 2,000 retail store units. “This unique and transformational opportunity will meaningfully enhance •Generates significant synergistic opportunities Mattress Firm’s position within the specialty retail bedding industry,” stated Steve Stagner, Mattress Firm’s president and chief executive officer. “The acquisition Over $20 million of identifiable cost and revenue synergy potential by the of Sleep Train will establish Mattress Firm as the first border to border, coast third year after closing. to coast multi-brand mattress specialty retailer in the United States, with pro •Creates opportunity to begin leveraging national scale benefits forma sales approaching $2 billion a year. It allows us to share best practices and integrate two industry leading management teams, positioning Mattress Firm Allows for enhanced nationwide delivery and distribution, advertising for accelerated growth. efficiencies and exclusive partnership opportunities. -Combined Business Will Operate Approximately 2,000 Mattress Specialty Retail •Adds high-volume, established locations with a strong and experienced leadership team Stores and 70 Distribution Centers Across 40 States - 29 year history of well-positioned, long-term leases in “hard to enter” - Expected Mid-Single Digit EPS Percentage Accretion, on GAAP Basis Before trade areas. One-Time Costs, in the First Full Year After Closing - Immediate scale with a sustained and profitable multi-brand organization. - Estimated $20 Million in Annual Run Rate Synergies by Fiscal 2017 - Experienced and disciplined culture that is highly aligned with Mattress Firm. •Enhances financial performance and improves growth prospects Estimated to achieve mid-single digit earnings per diluted share (EPS) percentage accretion, on a generally accepted accounting principles basis before one-time costs, in the first full year after closing. Combined business is anticipated to generate significant free cash flow. Establishes a foundation to execute on our proven relative market share model by opening additional stores in West Coast markets to achieve store penetration levels commensurate with existing Mattress Firm markets.

DUNKIN’ DONUTS & MATTRESS FIRM | 7 Representative Photo 23,220 DAILY

32 25E 11E 11E 34 KNOXVILLE

Buffalo Trail

343 66 West

Elementary N Liberty HIll Road

THE COUNTRY CLUB E Morris Boulevard

20,420 DAILY

E 1st N Street College Square Mall

66

Morristown- Hamblen High School East

34 W Morris Boulevard 11E 34 Tennessee Technology Center S Cumberland Street

Morristown- Hamblen High School West

W Andrew Johnson Highway Lincoln 32 Heights Middle Lincoln Avenue School 25E Fish Hatchery Road 66 343

MORRISTOWN GOLF AND COUNTRY CLUB

25E Valley Home Road 160 343 32 160 Close Aerial

College Square Mall

23,220 DAILY E Morris Boulevard

20,420 DAILY

11E KNOXVILLE Surrounding Retail Photos

THE SUBJECT PROPERTY IS ACROSS THE STREET FROM COLLEGE SQUARE MALL Site Plan & Elevation

GENERAL REALTY Morristown, TN Site Plan 10/31/2012 112-0078

DUNKIN’ DONUTS & MATTRESS FIRM | 11 South Exterior Elevation 1/8” = 1’ - 0”

10/05/2012

West Exterior Elevation 1/8” = 1’ - 0” GENERAL REALTY Morristown, TN 10/31/2012 Rendered Elevation 112-0078 Regional Map Morristown TN Location

DUNKIN’ DONUTS & MATTRESS FIRM

Surrounding Retail

DUNKIN’ DONUTS & MATTRESS FIRM | 12 Location & Demos

MORRISTOWN TN OVERVIEW POPULATION

The City of Morristown (27.15 square miles) is located near the northeast corner 1-Mile 3-Mile 5-Mile of Tennessee, within the third smallest county in the state, Hamblen (175 square miles). Like much of Tennessee, Hamblen County is temperate and continental 2013 3,286 29,439 42,843 with four distinct seasons and moderate temperatures (roughly 66-87°F in July and 27-47°F in January). 2013 HOUSEHOLD INCOMES Tennessee ranges from the lowlands of the Mississippi Delta with high rainfall 1-Mile 3-Mile 5-Mile and hot temperatures to the mountains of East Tennessee with high snowfall Average $41,960 $42,214 $46,547 (and even some temperate rain forests) and cold temperatures across the whole gamut of things in between.

In Morristown, the percentage of population over 18 without a high school TOP EMPLOYERS IN MORRISTOWN, TN degree or General Education Degree (GED) is over twice that of the national Employer figure (31.4% compared to 15.5%). The percentage of those without a high school degree or GED in Hamblen County, overall, is lower than that of Morristown but Mahle still substantially higher than the U.S. For those with a 4-year post-secondary Koch Foods degree or certificate, the gap between city and country is smaller—8.8% for Howmet Morristown compared to 10.1% for Hamblen County. JTEKT Automotive

DUNKIN’ DONUTS & MATTRESS FIRM | 13