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INVESTMENT OPPORTUNITY NEW BTS CONSTRUCTION | NEW 20-YEAR NNN LEASE PICO RIVERA CA (LOS ANGELES COUNTY)

Representative Photo

OFFERED AT: $3,225,000 | 4% CAP EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

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 Site Plan 11 Aerials

TENANT OVERVIEW 17 About Popeyes

AREA OVERVIEW 19 Pico Rivera Overview 20 Los Angeles County Overview 21 Demographics

Confidentiality Agreement & Disclosures

EXCLUSIVELY REPRESENTED BY

RYAN BARR | Principal RYAN BENNETT | Principal 760.448.2446 760.448.2449 [email protected] [email protected] CA DRE Lic#01338994 CA DRE Lic#01826517

Color Scheme

RGB R:145 / G:0 / B:40 CMYK C:0 / M:100 / Y:65 / K:47

RGB R:119 / G:120 / B:123 CMYK C:0 / M:0 / Y:0 / K65

Fonts GOTHAM/ BLACK GOTHAM/ MEDIUM GOTHAM/ LIGHT

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POPEYES | Pico Rivera, CA (Los Angeles County) | 2 EXECUTIVE SUMMARY POPEYES PICO RIVERA, CA

POPEYES | Pico Rivera, CA (Los Angeles County) | 3 Representative Photo EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

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

-- OFFERING SUMMARY --

INVESTMENT HIGHLIGHTS Offering Price: $3,225,000 Net Operating Income: $129,000 Cap Rate: 4% Price/SF: $1,331 Lease Type: NNN Lease Commencement: January 15, 2019 PROPERTY OVERVIEW Address: 9209 Telegraph Rd Pico Rivera, CA Property Size: Approx 2,423 Sq. Ft. Land Size: 0.31 Acre Ownership: Fee Simple (Land & Building) Year Built: 2018

Lee & Associates is pleased to exclusively offer for sale the fee simple interest (land & building) in a retail investment property located in Pico Rivera, in Los Angeles County, California (the “Property”). The build to suit property is currently under construction and will consist of a 2,423-square-foot retail building with drive-thru that sits on an approximately 0.31-acre parcel. The subject property is leased to The Big Spicy Corporation, Inc. dba Popeyes Kitchen (“Popeyes”). Popeyes is the world’s second largest quick service chicken concept as measured by total number of . Popeyes owns or franchises over 2,890 restaurants with a unique “Louisiana” style menu featuring spicy chicken, chicken tenders, fried shrimp and other seafood, red beans and rice and other regional items. The new 20-year NNN lease commences in January 2019, and features 10% rent increases every 5 years in Primary Term and the (4) 5-year option periods. The Absolute NNN lease requires minimal landlord responsibilties, offering an investor a passive income stream with solid rent growth. The subject property is situated on a hard corner signalized intersection along Telegraph Rd, offering outstanding signage and visibility to 26,000+ cars per day. Telegraph Rd is a major retail/commuter corridor in the area, offering quick access to Interstate 5 just a few blocks from the site. Additionally, the property is located in a dense infill location, with nearly 62,000 households within a 3-mile radius of the site. Popeyes is located in Pico Rivera, a city in Los Angeles County, California only 11 miles southeast of downtown Los Angeles. Pico Rivera is a thriving community that offers a balanced mix of homes, businesses and recreational facilities. Industrial and commercial uses are attracted to Pico Rivera, thanks in large part to the easy access provided by three freeways - Interstate 605 (San Gabriel Freeway), Interstate 5 (Santa Ana Freeway) and Interstate 60 (Pomona Freeway). The City of Pico Rivera was awarded the “Most Business-Friendly City in Los Angeles County” in 2016, reflecting its commitment to economic development, excellence in programs and services to facilitate business entry, expansion and retention, and availability of economic incentives for area businesses. It is the home of the US Corporate Headquarters for Aurora World (toys) and BakeMark ( ingredients), as well as top employers Bimbo , Cintas and Southern California Material Handling. The Water Replenishment District of Southern California recently completed a $110 million water recycling plant in Pico Rivera, built by J.F. Shea Construction, a Walnut-based developer. The plant is a giant step for Los Angeles County, which will no longer need water pumped from Northern California or the Colorado River in order to serve its 4 million customers. Representative Photo

POPEYES | Pico Rivera, CA (Los Angeles County) | 4 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

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

-- INVESTMENT HIGHLIGHTS --

DESIRABLE NATIONAL TENANT: POPEYES LOUISIANA KITCHEN • WORLD’S 2ND LARGEST QUICK SERVICE CHICKEN CONCEPT • NEW BUILD TO SUIT CONSTRUCTION • DRIVE-THRU LANE The subject property is a new build-to-suit quick service with drive-thru lane that is leased to The Big Spicy Corporation, Inc., dba Popeyes Louisiana Kitchen. Popeyes Louisiana Kitchen is the world’s second largest quick service chicken concept as measured by total number of restaurants. As of December 31, 2017, Popeyes owned or franchised a total of 2,892 restaurants, distinguished with a unique “Louisiana” style menu featuring spicy chicken, chicken tenders, fried shrimp and other seafood, red beans and rice and other regional items. BRAND NEW 20-YEAR NNN LEASE • ZERO LANDLORD RESPONSIBILITIES • EXCELLENT RENT GROWTH The new 20-year NNN lease commences in January 2019, and features 10% rent increases every 5 years in Primary Term and the (4) 5-year option periods. The Absolute NNN lease requires zero landlord responsibilties, offering an investor a passive income stream with solid rent growth. HARD CORNER SIGNALIZED INTERSECTION • MAJOR COMMUTER CORRIDOR • DENSE INFILL LOCATION The subject property is situated on a hard corner signalized intersection along Telegraph Rd, offering outstanding signage and visibility to 26,000+ cars per day. Telegraph Rd is a major commuter corridor in the area, offering quick access to Interstate 5 just a few blocks from the site. Additionally, the property is located in a dense infill location, with nearly 62,000 households within a 3-mile radius of the site. LOCATED IN CITY OF PICO RIVERA • MINUTES FROM DOWNTOWN LOS ANGELES • BUSINESS-FRIENDLY CITY The subject property is located in Pico Rivera, a city in Los Angeles County, California only 11 miles southeast of downtown Los Angeles. Pico Rivera is a thriving community that is home to a balanced mix of homes, businesses and recreational facilities. The City of Pico Rivera was awarded the “Most Business-Friendly City in Los Angeles County” in 2016, reflecting its commitment to economic development, excellence in programs and services to facilitate business entry, expansion and retention, and availability of economic incentives for area businesses. It is the home of the US Corporate Headquarters for Aurora World (toys) and BakeMark (bakery ingredients), as well as top employers Bimbo Bakeries, Cintas and Southern California Material Handling. REVITALIZED CITY • NEW SHOPPING & COMMUNITY DEVELOPMENT • SITE OF NEW $110-MILLION WATER TREATMENT PLANT There has been significant redevelopment in the city, with the opening of the Pico Rivera Towne Center, a 60-acre open-air shopping complex; Pico Crossing, a 2.79-acre shopping center; and, the Pico Rivera Village Walk, a $22 million, 12-acre shopping center located at the southwest corner of Whittier and Paramount boulevards. The Water Replenishment District of Southern California recently completed a $110 million water recycling plant in Pico Rivera, built by J.F. Shea Construction, a Walnut-based developer. The plant is a giant step for Los Angeles County, which will no longer need water pumped from Northern California or the Colorado River in order to serve its 4 million customers.

POPEYES | Pico Rivera, CA (Los Angeles County) | 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 RENT SCHEDULE

TENANT: The Big Spicy Corporation, Inc. dba Popeyes Louisiana Kitchen TERM START DATE END DATE NOI/YR NOI/MO NOI/SF/YR

GUARANTOR: Personal Guaranty (See Page 17) Years 1 - 5 1/15/2019 1/14/2024 $129,000.00 $10,750.00 $53.28

BUILDING SIZE: 2,423 Sq. Ft. Years 6 - 10 1/15/2024 1/14/2029 $141,900.00 $11,825.00 $58.56

LOT SIZE: 0.31 Years 10 - 15 1/15/2029 1/14/2034 $156,090.00 $13,007.50 $64.44

RENT COMMENCEMENT (Estimated): January 15, 2019 Years 16 - 20 1/15/2034 1/14/2039 $171,699.00 $14,308.25 $70.92

LEASE EXPIRATION: January 14, 2039 OPTION PERIODS - (4) 5-Year Options BASE LEASE TERM: 20 Years TERM START DATE END DATE NOI/YR NOI/MO NOI/SF/YR RENEWAL OPTIONS: (4) 5-Year Options Option 1 1/15/2039 1/14/2044 $188,868.90 $15,739.75 $78.00 LEASE TYPE: NNN Option 2 1/15/2044 1/14/2049 $207,755.79 $17,319.98 $85.80 LANDLORD RESPONSIBILITIES: None Option 3 1/15/2049 1/14/2054 $228,531.37 $19,044.28 $94.32 RENT INCREASES: 10% Increases Every 5 Years in Primary Term & Options Option 4 1/15/2054 1/14/2059 $251,384.51 $20,948.71 $103.80 ANNUAL RENT: $129,000

POPEYES | Pico Rivera, CA (Los Angeles County) | 6 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

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

-- LEASE ABSTRACT --

Tenant agrees to pay all Property Taxes levied and assessed during the Term of this Lease upon the Parcel. Tenant shall pay all such Property Taxes directly to the applicable taxing authority and provide Landlord with Property Taxes: evidence of payment within ten (10) days after Tenant’s receipt of a copy of the applicable tax bill. Taxes for the first and last years of the Term hereof shall be prorated between Landlord and Tenant.

As a material part of the consideration to Landlord under this Lease, Tenant hereby covenants and agrees that Tenant shall, at all times during the term of this Lease, assume and undertake Landlord’s responsibility as the Managing Party under the REA to maintain and repair all Common Areas within the Parcel and the Adjacent Parcel as described in and pursuant to the terms and conditions of the REA. In addition, Tenant shall maintain and repair the “Parcel A Drive-Thru Lane” and appurtenant menu board signage as described and depicted in the REA and which serves the Parcel. As further described in the REA, the obligations of Tenant for the maintenance and repair of the Common Areas within the Parcel and the Adjacent Parcel shall include, without limitation, the following:(the specific recitation of which shall not be deemed to limit the definition of such costs and expenses): resurfacing, restriping, cleaning and sweeping the parking areas; trash removal; painting; janitorial service; maintenance, and repair when necessary of sidewalks; curbs, bumpers, all signs; planting and landscaping and lighting and other utilities; operation, maintenance and repair of any common fire protecting systems, automatic sprinkler system, sewer lines, and storm drainage systems; personnel to implement such service including the cost of security guards; police and fire protection services; rental on land leased for common use; real and personal property taxes imposed on the Parcel; any assessments imposed by govemmental agencies; costs of utility services; public liability and property damage insurance on the Common Areas located on or within the Parcel; and worker’s compensation insurance for personnel. As part of Tenant’s obligations with respect to the maintenance and repair of the Common Areas, Tenant shall also be responsible for contracting and/or arranging for all of the following: Common Area Maintenance: (i) the periodic removal of all trash and waste from the trash receptacle located within the Common Areas on the Parcel as depicted in the REA; (ii) the maintenance and repair of the Shared Monument Sign serving the Parcel and the Adjacent Parcel as depicted in the REA; (iii) the maintenance and repair, to the extent necessary, of the paity wall constructed on the boundary of the Parcel and the Adjacent Parcel and which serves as a demising wall to segregate the Premises from the building improvements located on the Adjacent Parcel; and (iv) obtaining and maintaining comprehensive general liability insurance with respect to the Common Areas and comprehensive all-risk property insurance for all improvements located within the Common Areas as required to be maintained by the Managing Party pursuant to the terms and conditions of the REA The costs and expenses incurred by Tenant in connection with the maintenance and repair of the Common Areas including the items noted in (i), (ii), (iii) and (iv) above are hereinafter referred to as the “ Common Area Maintenance Costs.” In connection therewith, Tenant shall have the right to request and receive reimbursement for a portion of the Common Area Maintenance Costs from the owner of the Adjacent Parcel pursuant to the terms and conditions of the REA and, in connection therewith, Tenant shall be responsible for preparing the annual budgets therefor and for submitting all invoices and statements to the owner of the Adjacent Parcel for reimbursement as more particularly set faith in the REA.

Landlord and Tenant acknowledge that the REA restricts the owner and any tenant or occupant of the Adjacent Parcel from operating a restaurant whose primary business (which is construed to mean twenty percent Exclusive Use: (20%) or more of gross sales) is the selling of chicken.

At all times during the Term of this Lease, Tenant shall maintain in full force and effect with insurance companies licensed to do business in the State of California having a Best’s Insurance Report rating of A+, 3A or above and otherwise satisfactory to Landlord in its sole discretion, one or more policies evidencing the following coverage, each such policies nammg Landlord as additional insured and including a cross liability endorsement: Insurance: (a) General public liability and worker’s compensation insurance against claims for bodily injury, death or property damage occurring within the Premises with combined single limit of not less than $2,000,000.00. Plate glass insurance on the Premises and policies of fire insurance, including extended coverage and such other insurance as Landlord may require, on all improvement, fixtures and equipment installed by Tenant and contents in the Premises, such insurance to be in an amount equal to I 00% of the insurable value thereof

Utilities: Tenant shall pay for all water, gas, power and electric current and all other utilities used by Tenant on the Premises from and after the delivery of possession thereof by Landlord.

Landlord Maintenance & Repairs: Landlord shall have no obligation to repair or maintain the Premises or improvements constructed therein except as in this Lease provided.

Tenant shall, during the Term of this Lease, keep the Premises, including all improvements constructed by Tenant therein, in good order, condition and repair, including all overhead utilities and service lines, foundations and structural pmtions of the building containing the Premises, exterior walls and roof of the building containing the Premises; all windows, doors, door frames, and door closures; all plate glass, storefronts and showcases; Tenant Maintenance & Repairs: all floor, carpeting and other floor covering; all electrical equipment; all heating and air conditioning equipment; and all plumbing and sprinkler systems, if any, installed therein; and shall as necessary, or when required by governmental authority, make modification or replacements thereof. In addition, as provided in Section 6.9 above, Tenant shall, during the term of this Lease, keep all Common Areas located on or within the Parcel in good order, condition and repair, including without limitation, those items of service, maintenance and repair which are part of the Common Area Maintenance Costs. Tenant shall at any time and from time to time within 1O days after written request therefor by Landlord deliver a certificate to Landlord or to any proposed mortgagee, trust deed beneficiary, purchaser, or successor in interest, certifying the commencement and expiration dates of the Lease, that this Lease is then in full force and effect and setting forth the amount and nature of modifications, defenses, or offsets, if any, claimed by Estoppel Certificate: Tenant, the date to which the rent has been paid, any defaults on the pa1t of Landlord claimed by Tenant, and any other matters reasonably requested by Landlord. Any such statement may be conclusively relied upon by Landlord and any prospective purchaser or encumbrancer of the Premises.

POPEYES | Pico Rivera, CA (Los Angeles County) | 7 PROPERTY INFORMATION POPEYES PICO RIVERA, CA

POPEYES | Pico Rivera, CA (Los Angeles County) | 8 Representative Photo EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

• Location Maps • Site Plan Aerials

-- LOCATION MAPS --

BURBANK

TO DOWNTOWN LOS ANGELES PICO RIVERA PASADENA UNIVERSAL CITY GLENDALE 11 MILES

TELEGRAPH RD BEVERLY HILLS MONTEREY PARK LOS ANGELES

SANTA MONICA

LAKEWOOD BLVD PICO RIVERA HUNTINGTON PARK WHITTIER

DOWNEY

DOWNEY EL SEGUNDO

GARDENA FLORENCE AVE

TORRANCE

Pacific Ocean CYPRESS

LONG BEACH TO ANAHEIM 16 MILES

PALOS VERDES

POPEYES | Pico Rivera, CA (Los Angeles County) | 9 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps • Site Plan • Aerials

-- SITE PLAN --

POPEYES | Pico Rivera, CA (Los Angeles County) | 10 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Site Plan • Aerials •

LAKEWOOD BLVD (36,000 CPD) -- OVERHEAD VIEW -- ON RAMP OFF RAMP

234,000 CPD OFF RAMP VILLAGE APARTMENTS

CARE MORE MEDICAL GROUP

GLENBROOK DOWNEY APARTMENTS

SERAPIS AVE TELEGRAPH RD (26,000 CPD)

KIMBERLY THOR APARTMENTS

CLAYMORE ST

SUNFLOWER APARTMENTS SERAPIS AVE

TELEGRAPH RD (26,000 CPD) CLAYMORE ST

POPEYES | Pico Rivera, CA (Los Angeles County) | 11 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Site Plan • Aerials •

SUNSHINE LIBERTY BAKEMARK GRM DOCUMENT -- LOOKING NORTH -- PLASTICS LINEHAUL WEST CD CONTAINER MGMT UNISOURCE FIRST SOURCE AURORA EMPIRE CLEANING SOLUTIONS CNS IMPORTS FULFILLMENT CHAMPION LOGISTICS WORLD PARTS AUTHORITY JOHNSTONE CAL RECYCLE LUMUX LIGHTING WORLD GROUP BARRETT PACIFIC LOGISTICS SUPPLY SLAUSON AVE CINTAS DISTRIBUTION COLONIAL GARDENS JAY BHARAT PARTS CHANNEL NURSING HOME SEVILLE MCKINNEY FOODS GF HEALTH APARTMENTS TRAILER RENTALS PARAMOUNT BLVD PRODUCTS RIVERA FLATRATE MOVING NITROPLANES ROCKET FARMS 711 ROSEMEAD BLVD ENDPAK ELEMENTARY HERBS PACKAGING BIRCH ELLEN OCHOA SERVICE STEEL ORBIT RUSH TRUCK APARTMENTS SCHOOL TELEGRAPH RD (26,000 CPD) AEROSPACE CORP APARTMENTS PREPARATORY ACADEMY INTERNATIONAL CENTER REEVE STORE EQUIPMENT DOWNEY PLAZA CENTRAL FREIGHT STUDIO CLUB APARTMENTS PARAMOUNT BLVD LINES SLAUSON AVE APARTMENTS CORSICA APARTMENTS GLEN HAVEN PLAZA DE LA RAZA COLLARO APARTMENTS CHILD DEVELOPMENTPAVILLION SERVICES APARTMENTS APARTMENTS PAVILION COURT APARTMENTS ROSEMEAD BLVD (36,000 CPD) MAGEE ACADEMY OF SERAPIS AVE ARTS & SCIENCES

CARE MORE MEDICAL GROUP ON RAMP VILLAGE APARTMENTS

LAKEWOOD BLVD (36,000 CPD)

ON RAMP GLENBROOK DOWNEY KIMBERLY THOR CITY LINE Representative Property OFF RAMP APARTMENTS APARTMENTS TELEGRAPHPET RD CLINIC (26,000 CPD) RIVERA SERAPIS AVE PHARMACY CLAYMORE ST

PASSONS BLVD 234,000 CPD SUNFLOWER APARTMENTS

BROOKFIELD UNSWORTH HEALTHCARE ELEMENTARY SCHOOL CENTER TAMPICO MOTEL TELEGRAPH APARTMENTS GILMER GRAPHICS

POPEYES | Pico Rivera, CA (Los Angeles County) | 12 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Site Plan • Aerials •

RUBEN SALAZAR PIONEER HIGH SCHOOL EL RANCHO -- LOOKING EAST -- HIGH SCHOOL HIGH SCHOOL

RIVERA PARTS AUTHORITY ELEMENTARY SCHOOL AURORA PACIFIC LOGISTICS SLAUSON AVE FIRST SOURCE MAIZELAND GRM DOCUMENT WORLD PARTS CHANNEL MGMT CITY OF PICO RIVERA SCHOOL GF HEALTH BARRETT PRODUCTS PARKS & REC DISTRIBUTION ENDPAK REEVE STORE ST MARIANNE DE PACKAGING EQUIPMENT 711 ROSEMEAD BLVD PAREDES SCHOOL COLLARO STEAM ACADEMY ORANGE AVE APARTMENTS SLAUSON AVE APARTMENTS PASSONS BLVD AT BURKE STUDIO CLUB CORSICA RIVERA RUSH TRUCK APARTMENTS APARTMENTS PARK CENTER CENTRAL FREIGHT ORBIT LINES INTERNATIONAL MAGEE ACADEMY OF ARTS & SCIENCES

BIRNEY TECH ACADEMY

SERAPIS AVE

PASSONS BLVD ROSEMEAD BLVD (36,000 CPD) Representative Property

CLAYMORE ST CLAYMORE ST GARDENS BAR & GRILL

CITY LINE RIVERA TAMPICO GILMER PET CLINIC PHARMACY MOTEL GRAPHICS TELEGRAPH RD (26,000 CPD) TELEGRAPH RD (26,000 CPD) CARE MORE KIMBERLY THOR TELEGRAPH MEDICAL GROUP SUNFLOWER BROOKFIELD APARTMENTS APARTMENTS APARTMENTS HEALTHCARE CENTER

GLENBROOK DOWNEY APARTMENTS VILLAGE APARTMENTS UNSWORTH ELEMENTARY SCHOOL

POPEYES | Pico Rivera, CA (Los Angeles County) | 13 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Site Plan • Aerials •

-- LOOKING SOUTH -- FLORENCE AVE SANTA FE SANTA FE SPRINGS HIGH SCHOOL AQUATIC CENTER LAKEVIEW ELEMENTARY SCHOOL

FLORENCE AVE

DOTY MIDDLE SCHOOL

TELEGRAPH RD (26,000 CPD) DOWNEY NORTH APARTMENTS

BIRNEY TECH ACADEMY GARDENS BAR & GRILL GILMER TELEGRAPH GRAPHICS APARTMENTS 234,000 CPD TAMPICO BROOKFIELD MOTEL HEALTHCARE UNSWORTH CENTER ELEMENTARY SCHOOL PASSONS BLVD CLAYMORE ST SUNFLOWER APARTMENTS RIVERA PHARMACY CITY LINE KIMBERLY THOR PET CLINIC APARTMENTS

GLENBROOK DOWNEY APARTMENTS

OFF RAMP

TELEGRAPH RD (26,000 CPD) ON RAMP

SERAPIS AVE VILLAGE APARTMENTS Representative Property

CARE MORE MEDICAL GROUP

POPEYES | Pico Rivera, CA (Los Angeles County) | 14 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Site Plan • Aerials • WOODCREEK APARTMENTS GRIFFITHS PARAMOUNT BLVD MIDDLE SCHOOL MAUDE PRICE -- LOOKING WEST -- ELEMENTARY SCHOOL

FLORENCE AVE PARAMOUNT BLVD

BROOKSHIRE AVE GALLATIN ELEMENTARY SCHOOL GALLATIN SCHOOL HOUSE RD ARIZONIAN APARTMENTS BROOKSHIRE APARTMENTS LAKEWOOD BLVD (36,000 CPD) DOWNEY TOWNHOMES PARC@5 APARTMENTS OFF RAMP ON RAMP

ON RAMP 234,000 CPD LAKEWOOD BLVD (36,000 CPD) PAVILION COURT ON RAMP APARTMENTS OFF RAMP TELEGRAPH RD (26,000 CPD) VILLAGE APARTMENTS CARE MORE ROSEMEAD BLVD (36,000 CPD) MEDICAL GROUP

GLENBROOK DOWNEY APARTMENTS UNSWORTH SERAPIS AVE ELEMENTARY SCHOOL

KIMBERLY THOR APARTMENTS

SUNFLOWER APARTMENTS

CITY LINE BROOKFIELD TELEGRAPH PETRD CLINIC(26,000 CPD) HEALTHCARE RIVERA CENTER PHARMACY

TELEGRAPH CLAYMORE ST APARTMENTS Representative Property

POPEYES | Pico Rivera, CA (Los Angeles County) | 15 TENANT OVERVIEW POPEYES PICO RIVERA, CA

POPEYES | Pico Rivera, CA (Los Angeles County) | 16 Representative Photo EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

• About Popeyes •

-- ABOUT POPEYES --

Popeyes is an American multinational chain of restaurants founded in 1972 in , Louisiana. Since 2008, its full brand name is Popeyes Louisiana Kitchen, Inc. and it was formerly named Popeyes Chicken & Biscuits and Popeyes Famous Fried Chicken & Biscuits. Popeyes is the second-largest “quick-service chicken restaurant group, measured by number of units”, after KFC. More than 2,600 Popeyes restaurants are in more than 40 states and the District of Columbia, , and 30 countries worldwide. About thirty locations are company-owned, the rest franchised. Popeyes distinguishes itself with a unique New Orleans style menu, serving chicken dishes in mild and spicy flavors and sides such as red beans and rice, Cajun fries, mashed potatoes with Cajun-style gravy, Cajun rice, macaroni & cheese, and . In addition to fried chicken, other entree items include a chicken-and-sausage jambalaya and po’ boy . Most combo meals come with a side order, , and a biscuit.. The chain’s passion for its Louisiana heritage and flavorful authentic food has allowed Popeyes to become one of the world’s largest quick service restaurant chicken concepts.

POPEYES CONSISTENTLY RANKS IN THE QSR “TOP FIFTY”

In the limited-service restaurant industry, success is rarely a given. Performance ebbs and flows. Trends come and go. New competitors gobble up market share one year and then fade into oblivion the next. To make it as one of the most successful companies in this industry, restaurants must run the gauntlet of challenges necessary to scaling a concept, from establishing a loyal customer base to forming committed stakeholder relationships, and from building an efficient supply chain to navigating potential threats to the business. Indeed, only those companies that have put in the time and sweat equity can lay claim to being the biggest and the best in a $234 billion industry. Popeyes has consistently ranked in the Top Fifty for the past decade, typically sitting at #20.

RESTAURANT BRANDS INTERNATIONAL On February 21, 2017, Restaurant Brands International announced a deal to buy Popeyes for US$1.8 billion. On March 27, 2017, the deal closed with RBI purchasing Popeyes at $79 per share via Orange, Inc, an indirect subsidiary of RBI. Restaurant Brands International Inc. (NYSE: QSR / TSX: QSR) is a Canadian corporation originally formed on August 25, 2014 to serve as the indirect holding company for and its consolidated subsidiaries and and its consolidated subsidiaries, and, since our acquisition of Popeyes, Popeyes and its consolidated subsidiaries. Restaurant Brands International is one of the world’s largest quick service restaurant (“QSR”) companies with more than $30 billion in system-wide sales and over 24,000 restaurants in more than 100 countries and U.S. territories as of December 31, 2017. Their Our three iconic brands are managed independently while benefiting from global scale and sharing of best practices. As of December 31, 2017, approximately 100% of total restaurants for each of our brands was franchised.

ABOUT THE OPERATOR The subject property is operated by The Big Spicy Corporation, Inc., an experienced franchisee with 5 Popeyes locations throughout California. The lease provides an investor with a personal guaranty from the principal of Big Spicy Corporation.

POPEYES | Pico Rivera, CA (Los Angeles County) | 17 AREA OVERVIEW POPEYES PICO RIVERA, CA

POPEYES | Pico Rivera, CA (Los Angeles County) | 18 Representative Photo EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

• Pico Rivera Overview • Los Angeles County Overview Demographics

-- PICO RIVERA --

Pico Rivera is a city located in southeastern Los Angeles County, California. Situated on the eastern edge of the Los Angeles basin and the southern edge of the area known as the San Gabriel Valley, Pico Rivera is approximately 11 miles southeast of downtown Los Angeles. Pico Rivera is a thriving community that offers opportunities to all who live and work in the City. Incorporated in 1958 by residents of two adjacent historic communities, Pico and Rivera, the once agricultural area is now home to a balanced mix of homes, businesses and recreational facilities. Industrial and commercial uses continue to be attracted to Pico Rivera, thanks in large part to the easy access provided by three freeways - Interstate 605 (San Gabriel Freeway), Interstate 5 (Santa Ana Freeway) and Interstate 60 (Pomona Freeway) - access to the City via two railway systems - the Burlington Northern Santa Fe Railway, and the Union Pacific Railroad - and the close proximity of world-class port and airport facilities. The City of Pico Rivera was awarded the “Most Business-Friendly City in Los Angeles County” in 2016, reflecting its commitment to economic development, excellence in programs and services to facilitate business entry, expansion and retention, and availability of economic incentives for area businesses. It is the home of the US Corporate Headquarters for Aurora World (toys) and BakeMark (bakery ingredients), as well as top employers Bimbo Bakeries, Cintas and Southern California Material Handling.

A REVITALIZED CITY WITH NEW GROWTH AND REDEVELOPMENT There has been significant redevelopment in the city, such as the opening of the “Pico Rivera Towne Center“”, a 60-acre open-air shopping complex along Washington Boulevard, that has brought in such well-known businesses as , Petsmart, Lowe’s, Walmart, Walgreens, Del and other businesses into the city. Pico Crossing is a 2.79-acre shopping center with retailers that include Rite-Aid Pharmacy, Starbucks, and . Noteworthy redevelopment has taken place in recent years along historic Whittier Boulevard, bringing in such businesses as Target and . More developments include the Pico Rivera Village Walk, a $22 million, 12-acre shopping center located at the southwest corner of Whittier and Paramount boulevards. Tenants such as CVS Pharmacy and Krikorian Theatres are located at the corner of Paramount and Whittier Boulevards. A state- of-the-art LA Fitness, which is part of an 8.10-acre Pico Rivera Market Place Shopping Center with a Wing Stop, Chase Bank, Juice It Up and other businesses has opened at the corner of Washington and Rosemead Boulevards. As the community looks forward to the next 50 years, several recent and pending projects will help ensure Pico Rivera continues to be a great place to live, work and play. These include the recently completed projects such as the $43M Passons Boulevard railroad underpass project, the new $16M rebuild of the Pico Rivera Library on Mines Avenue and the completion of the Parks Renovation project, a $20M investment which provided much-needed improvement and expansion of city parks and recreational facilities throughout the community. WATER REPLENISHMENT DISTRICT OF SOUTHERN CALIFORNIA’S NEW $110 MILLION WATER TREATMENT PLANT The Water Replenishment District of Southern California recently completed a $110 million water recycling plant in Pico Rivera, built by J.F. Shea Construction, a Walnut-based developer. The last-stage water treatment plant treats wastewater from toilets, showers and sinks already treated by the Los Angeles County Sanitation District’s San Jose Creek Water Reclamation Plant near Whittier and piped along the river’s edge. Water at the Pico Rivera plant will be treated to the purification level of distilled water, said WRD officials. About 21,000 acre-feet of treated water that normally gets wasted to the ocean will instead be tapped, treated and put into the ground where it percolates into the water table and is later drawn by retail water companies’ wells. The giant step toward self-sustainability means managers of two of the largest ground water basins in the region will no longer need water pumped from Northern California or the Colorado River in order to serve 4 million customers from 43 cities in south Los Angeles County. The central and west coast underground basins will essentially be drought proof and no longer will have to worry about water allocations from outside the area.

POPEYES | Pico Rivera, CA (Los Angeles County) | 19 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Pico Rivera Overview • Los Angeles County Overview • Demographics

-- LOS ANGELES COUNTY OVERVIEW -- Los Angeles County is one of California’s original 27 counties, and is the most populous county in the , with more than 10 million residents as of 2017. Its population is larger than that of 41 individual U.S. states. It is the third-largest metropolitan economy in the world, with a GDP of over $700 billion. The county is home to more than one-quarter of California residents and is one of the most ethically diverse counties in the U.S. Most of the population of Los Angeles County is located in the south and southwest, with major population centers in the Los Angeles Basin, San Fernando Valley and San Gabriel Valley. Other population centers are found in the Santa Clarita Valley, Pomona Valley, Crescenta Valley and Antelope Valley. The county is divided west-to-east by the San Gabriel Mountains, which are part of the Transverse Ranges of southern California, and are contained mostly within the Angeles National Forest. Los Angeles County is commonly associated with the entertainment and digital media industry; all six major film studios—Paramount Pictures, 21st Century Fox, Sony, Warner Bros., Universal Pictures, and Walt Disney Studios—are located within the county. Numerous other major industries also define the economy of Los Angeles County, including international trade supported by the Port of Los Angeles and the Port of Long Beach, music recording and production, aerospace and defense, fashion, and professional services such as law, medicine, engineering and design services, financial services and more. High-tech sector employment within Los Angeles County is 368,500 workers, and manufacturing employment within Los Angeles County is 365,000 workers.

TOP 10 EMPLOYERS - LOS ANGELES COUNTY Company/Organization Name Jobs County of Los Angeles 107,500 Los Angeles Unified School District 90,800 City of Los Angeles 49,500 University of California Los Angeles 46,200 Federal Govt (non-Defense) 45,000 Kaiser Permanente 36,900 State of California (non-education) 29,900 University of Southern California 18,900 Northrop Grumman Corp. 16,600 Target Corp. 15,000 Source: Los Angeles Almanac (Based on 2016)

POPEYES | Pico Rivera, CA (Los Angeles County) | 20 SUMMARY PROFILE 2000-2010 Census, 2018 Estimates with 2023 Projections Calculated using Weighted Block Centroid from Block Groups

Lat/Lon: 33.9586/-118.1059 RS1 9209 Telegraph Rd 1 mi radius 3 mi radius 5 mi radius SPiUcoM RMiveAraEXECUTIVER, YCA P 9R06O60FILE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW 2000-20120180 Ce Estimatednsus, 2018 Population Estimates with 2023 Projections 27,860 214,205 675,201 Calculated using Weighted Block Centroid from BlockPico Groups Rivera Overview Los Angeles County Overview • Demographics • 2023 Projected Population 28,015 215,855 680,300 N O

I 2010 Census Population 27,583 209,483 664,099 T

-- DEMOGRAPHICSLat/LA on: 200033.95 Census8 --6/-118 .Population1059 26,676 205,999 658,186 L RS1 U

P Projected Annual Growth 2018 to 2023 0.1% 0.2% 0.2% 920O 9 Telegraph Rd 675,201 POPULATION - 5 MILES P Historical Annual Growth 2000 to 2018 1 mi rad0.2%ius 3 mi rad 0.2%ius 5 mi rad0.1%ius Pico Rivera, CA 90660 1 Mile 3 Miles 5 Miles EXCELLENT SURROUNDING DEMOGRAPHICS 2018 Median Age 36.4 35.2 34.3 Over 675,000 people live within a 5-mile radius 2018 Estimated Population 27,860 214,205 675,201 of the subject property. 2018 Estimated Households 8,040 61,364 190,028 2023 Projected Population 28,015 215,855 680,300 S N

D 2023 Projected Households 8,312 63,585 196,831 O L I 2010 Census Population 27,583 209,483 664,099 190,000 HOUSEHOLDS - 5 MILES O T 2010 Census Households 7,818 58,627 183,201 A H 2000 Census Population 26,676 205,999 658,186 L E DENSE RESIDENTIAL IN-FILL LOCATION U

S 2000 Census Households 7,805 58,439 182,074 P U Projected Annual Growth 2018 to 2023 0.1% 0.2% 0.2% There are over 190,000 households within a O O

P Projected Annual Growth 2018 to 2023 0.7% 0.7% 0.7%

H 5-mile radius of the subject property.

POPULATION Historical Annual Growth 2000 to 2018 0.2% 0.2% 0.1% Historical Annual Growth 2000 to 2018 0.2% 0.3% 0.2% 2018 Median Age 36.4 35.2 34.3 2018 Estimated White 58.7% 56.6% 53.4% AVG HH INCOME - 5 MILES 2018 Estimated Households 8,040 61,364 190,028 $79,322 2018 Estimated Black or African American 2.6% 2.8% 3.4% D S Y N T D 2023 Projected Households 8,312 63,585 196,831 I

L 2018 Estimated Asian or Pacific Islander 7.1% 6.3% 6.6% A C I O E 2010 Census Households 7,818 58,627 183,201 N H C 2018 Estimated American Indian or Native Alaskan 1.0% 1.1% 1.1% H E A T

S 2000 Census Households 7,805 58,439 182,074 R E 2018 Estimated Other Races 30.6% 33.2% 35.5% TOP EMPLOYERS - PICO RIVERA # of Employees U

O Projected Annual Growth 2018 to 2023 0.7% 0.7% 0.7% H 2018 Estimated Hispanic 77.1% 78.5% 78.3% El Rancho Unified School District 1,225 HOUSEHOLDS Historical Annual Growth 2000 to 2018 0.2% 0.3% 0.2%

E 2018 Estimated Average Household Income $93,988 $85,195 $79,322 Wal-Mart 500 M 2018 Estimated White 58.7% 56.6% 53.4% O 2018 Estimated Median Household Income $75,416 $67,672 $63,177 Southern California Gas Co 433 C

N 2018 Estimated Black or African American 2.6% 2.8% 3.4% D I Y 2018 Estimated Per Capita Income $27,184 $24,462 $22,385 N T BakeMark USA 310 I 2018 Estimated Asian or Pacific Islander 7.1% 6.3% 6.6% A C I E

N 2018 Estimated Elementary (Grade Level 0 to 8) 14.6% 14.8% 17.0% C 2018 Estimated American Indian or Native Alaskan 1.0% 1.1% 1.1% Cinta Facility Services 225 H A

T 2018 Estimated Some High School (Grade Level 9 to 11) 12.3% 12.4% 12.4% R

E 2018 Estimated Other Races 30.6% 33.2% 35.5% N Target 186 ) This report was produced using data from private and government sources deemed to be reliable. The information herein is provided without representation or warranty. representation herein is provided without information The be reliable. sources deemed to and government private from was produced using data report This + O

I 2018 Estimated High School Graduate 24.7% 27.1% 26.6% 5 T

RACE & ETHNICITYRACE 2018 Estimated Hispanic 77.1% 78.5% 78.3%

2 Feit Electric Co Inc. 180 A

E 2018 Estimated Some College 21.3% 20.5% 19.8% C G U E Bay Cities Container 155 A 2018 Estimated Average Household Income $93,988 $85,195 $79,322

D 2018 Estimated Associates Degree Only 9.2% 7.3% 7.2% ( M E O 2018 Estimated BachelorsMedian Household Degree Only Income $75,41613.0% $67,672 12.6% $63,17712.0% First Source LLC 146 C N I 2018 Estimated GraduatePer Capita Degree Income $27,1845.0% $24,462 5.3% $22,3855.0% INCOME Lowe’s 145

S 2018 Estimated TotalElementary Businesses (Grade Level 0 to 8) 14.6%673 14.8% 7,818 21,56517.0% Pacific Coast Feather <100 S

E 2018 Estimated TotalSome Employees High School (Grade Level 9 to 11) 12.3%5,684 93,743 12.4% 263,64912.4% N N )

I Bimbo Bakeries <100 This report was produced using data from private and government sources deemed to be reliable. The information herein is provided without representation or warranty. representation herein is provided without information The be reliable. sources deemed to and government private from was produced using data report This + O S I 2018 Estimated High School Graduate 24.7% 27.1% 26.6% 5 2018 Estimated Employee Population per Business 8.4 12.0 12.2 U T

2 Los Angeles County Sheriff’s Department <100 B A BUSINESS E 2018 Estimated Some College 21.3% 20.5% 19.8%

C 2018 Estimated Residential Population per Business 41.4 27.4 31.3 G U

A City of Pico Rivera <100

D 2018 Estimated Associates Degree Only 9.2% 7.3% 7.2% ( E 2018 Estimated Bachelors Degree Only 13.0% 12.6% 12.0% ©2018, Sites USA, Chandler, Arizona, 480-491-1112 page 1 of 1 Demographic Source: Applied Geographic Solutions 04/2018, TIGER Geography Source: City of Pico Rivera Annual Financial Report, June 30, 2017 2018 Estimated Graduate Degree 5.0% 5.3% 5.0%

S 2018 Estimated Total Businesses 673 7,818 21,565 POPEYES | Pico Rivera, CA (Los Angeles County) | 21 S

E 2018 Estimated Total Employees 5,684 93,743 263,649 N I

S 2018 Estimated Employee Population per Business 8.4 12.0 12.2 U B 2018 Estimated Residential Population per Business 41.4 27.4 31.3

©2018, Sites USA, Chandler, Arizona, 480-491-1112 page 1 of 1 Demographic Source: Applied Geographic Solutions 04/2018, TIGER Geography EXCLUSIVELY REPRESENTED BY

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RGB R:119 / G:120 / B:123 760.448.2446 CMYK C:0 / M:0 / Y:0 / K65 760.448.2449 [email protected] [email protected] GOTHAM/ BLACK CA DRE Lic#01338994 GOTHAMCA/ MEDIUM DRE Lic#01826517 GOTHAM/ LIGHT

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