Chicken Express Azle, TX CONFIDENTIALITY and DISCLAIMER

Offering Memorandum Chicken Express Azle, TX 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 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 Real Estate Investment Services, Inc. (“M&M”) 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 M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

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.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. exclusivelyExclusively listed by: Investment Sales: listed Philip Levy Blake Davis First Vice President Investments Associate FORT WORTH OFFICE Tel: (817) 932-6120 Tel: (817) 932-6123 Fax: (817) 380-1153 Fax: (817) 380-1153 [email protected] [email protected] OFFICES NATIONWIDE License: TX 522087 www.marcusmillichap.com Chicken Express

Table of Contents

EXECUTIVE SUMMARY Executive Summary ...... 2 Investment Overview ...... 3 PROPERTY DESCRIPTION Property Details ...... 5 Regional Map ...... 6 Local Map ...... 7 Aerial Photo ...... 8 FINANCIAL ANALYSIS Financial Overview ...... 10 Tenant Overview ...... 11 MARKET OVERVIEW Demographic Summary ...... 13 summaryEXECUTIVE SUMMARY EXECUTIVE SUMMARY Chicken Express

CHICKEN EXPRESS 529 N Stewart Street Azle, TX 76020 SUMMARY EXECUTIVE

OFFERING SUMMARY Offering Price $2,100,000 Cap Rate 6.00% Rentable Square Feet 3,249 SF Year Built / Renovated 1985 / 2013 Lot Size 0.68 Acres

PROPERTY

DESCRIPTION LEASE SUMMARY Lease Type Absolute Net Roof and Structure Tenant Responsible Lease Guarantor Franchisee Guarantee Original Lease Term 10 Years Rent Commencement Date At Closing Lease Expiration Date 10 Years Remaining Lease Term 10 Years Options 4, 5-Year Options ANALYSIS FINANCIAL Increases 10% Every 5 Years

MARKET OVERVIEW

The subject property is located on North Stewart Street, just east of Highway 199. Traffic counts on Highway 199 are approximately 28,800-vehicles per day. Investment Highlights Chicken Express is an out parcel to a Beall’s and Brookshire’s grocery store ■■ Sale/Leaseback Opportunity anchored retail center. Other national and regional retailers in the area include ■■ Tenant will Execute a New 10-Year, Absolute Net Lease at Closing | Zero Rent-a-Center, Ace Hardware, Anytime Fitness, Pro-Cuts, Allstate Insurance, Landlord Responsibilities Taco Bell, Arby’s, and others.

■ FINANCIAL ■ Franchisee Guarantee | Operator Has 6 Locations With an Additional ANALYSIS Location Currently Under Construction Azle sits on the Tarrant/Parker County line along State Highway 199, 14 miles ■■ Lease Includes 10% Rent Escalations Scheduled Every Five Years, Including northwest of downtown Fort Worth. Access to three interstates, state highways, Four, Five-Year Options for Renewal and the Dallas-Ft Worth International Airport make it convenient to get to and ■■ Out Parcel to a Beall’s and Brookshire’s Grocery Anchored Retail Center from the area. Azle is already home to a number of businesses, but has the resources and room to grow. Industrial and commercial real estate are both ■■ Located on N Stewart Street Just East of Highway 199

available and affordable. ■■ Azle is 14 Miles Northwest of Downtown Fort Worth OVERVIEW MARKET ■■ For Sale Individually or as Part of a Portfolio | Five Other Locations in the DFW Area Available

THE OFFERING SUMMARY

EXECUTIVE Property Chicken Express Property Address 529 N Stewart Street Azle, TX 76020

SITE DESCRIPTION Year Built / 2013 1985 / 2013 Rentable Square Feet 3,249 SF Lot Size 0.68 Acres Type of Ownership Fee Simple PROPERTY DESCRIPTION ANALYSIS FINANCIAL MARKET OVERVIEW

EXISTING FINANCING Loan Type Free and Clear SUMMARY EXECUTIVE OFFERING SUMMARY ANNUALIZED OPERATING DATA Price $2,100,000 Rent Increases Annual Rent Monthly Rent Down Payment 100% / $2,100,000 Years 1 - 5 $126,000.00 $10,500.00 Years 6 - 10 $138,000.00 $11,550.00 Rentable Square Feet 3,249 Option 1: Years 11 - 15 $152,460.00 $12,705.00 Price/SF $646.35 Option 2: Years 16 - 20 $167,706.00 $13,975.50 CAP Rate 6.00% Option 3: Years 21 - 25 $184,476.60 $15,373.05 Year Built 1985 Option 4: Years 26 - 30 $202,924.26 $16,910.36 Base Rent ($38.78/SF) $126,000 Lot Size 0.68 Acres Net Operating Income $126,000 Type of Ownership Fee Simple Total Return 6.00% / $126,000 PROPERTY DESCRIPTION

TENANT SUMMARY Tenant Trade Name Chicken Express Ownership Private Tenant Franchisee Lease Guarantor Franchisee Guarantee Lease Type Absolute Net Roof and Structure Tenant Responsible

ANALYSIS Original Lease Term 10 Years FINANCIAL Lease Commencement Date At Closing Rent Commencement Date At Closing Lease Expiration Date 10 Years Remaining Lease Term Increases 10% Every 5 Years Options 4, 5-Year Options

MARKET OVERVIEW

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. References to square footage or age are 10 approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID T0000000 EXECUTIVE PROPERTY FINANCIAL MARKET SUMMARY DESCRIPTION ANALYSIS OVERVIEW 11 ACT ID T0000000 ACT Chicken Express Chicken After almost a decade of experience under another franchise, the Stuart’s Stuart’s the franchise, another of experience a decade under almost After TX Benbrook, in 1988 March in name Express the Chicken launched Chicken TX–the base for home in October Wells, in Mineral 1988 and the Chicken expanded the Stuart’s Wells in Mineral Residing Express. the very of first being one by originally product and name Express very was business delivery The delivery businesses. foodfast chicken 1994 all so in 1990 until product, and the word spreading successful for concept. “delivery” utilizednew drive-thru, or the franchises dine-in, Since opened in 1990. was store franchise Express Chicken first The thesouthwest across up opened have locations 200 than thenmore in stores also we have but in Texas, are locations Most States. United Louisiana. and Georgia, Oklahoma Arkansas, 7 No No No Private 3,249 SF Franchisee Azle, TXAzle, 76020 Chicken Express Chicken Chicken Express Chicken 4, 5-Year Options 4, 5-Year www.chickene.com 529 N Stewart Street 529 N Stewart Franchisee Guarantee Franchisee Net Leased Restaurant Fast Food Fast Leased Restaurant Net 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. References to square footage or age are are age or footage to square References to accuracyas the of information. the or implied, expressed or warranties, representations no make we but reliable, to we be believe has been sources secured from information This or the current represent do not purposes and only example for are used herein estimates or assumptions opinions, projections, inaccuracies. Any any bears all for risk and verify the information must Buyer approximate. & Millichap Services, © 2014 Marcus Inc. Investment Real Services Estate & Millichap a service is Marcus of Investment Real mark Estate & Millichap Marcus the property. of performance future Property Address Property Property Name Property Type Property Feet Square Rentable Name Trade Tenant Tenant Lease Guarantor Locations of No. Site Web Renew to Options Terminate to Options Purchase to Options Refusal of Right First Ownership FINANCIAL ANALYSIS FINANCIAL Tenant Overview Tenant overviewMARKET OVERVIEW MARKET OVERVIEW Chicken Express

Demographic Summary

POPULATION 1-MILE 3-MILES 5-MILES INCOME 1-MILE 3-MILES 5-MILES SUMMARY EXECUTIVE 2000 Population 3,502 14,267 24,914 $0 - $ 14,999 17.5% 13.4% 11.3% 2010 Population 4,216 16,767 31,139 $15,000 - $24,999 9.3% 11.0% 10.0% 2014 Population 4,437 17,639 32,835 $25,000 - $34,999 9.4% 10.1% 8.8% 2019 Population 4,714 18,620 35,801 $35,000 - $49,999 14.2% 13.8% 12.6% $50,000 - $74,999 20.6% 20.2% 19.9%

HOUSEHOLDS 1-MILE 3-MILES 5-MILES $75,000 - $99,999 13.9% 14.1% 14.2% 2000 Households 1,308 5,367 9,342 $100,000 - $124,999 7.0% 7.9% 9.1% 2010 Households 1,541 6,357 11,917 $125,000 - $149,999 3.2% 3.1% 4.8%

PROPERTY 2014 Households 1,620 6,706 12,594 $150,000 - $200,000 2.5% 3.3% 4.6% DESCRIPTION 2019 Households 1,721 7,123 13,820 $200,000 to $249,999 1.2% 1.3% 2.0% 2014 Average HH Size 2.55 2.59 2.61 $250,000 + 1.4% 1.7% 2.8% 2014 Daytime Population 1,580 4,684 7,446 2014 Median HH Income $49,701 $52,028 $59,454 2014 Per Capita Income $23,676 $26,145 $30,651 2000 Owner Occupied Housing Units 63.38% 69.16% 71.64% 2014 Average HH Income $63,909 $68,130 $79,561 2000 Renter Occupied Housing Units 30.68% 23.44% 20.12% 2000 Vacant 5.95% 7.40% 8.24% 2014 Owner Occupied Housing Units 65.94% 71.77% 76.09% ANALYSIS FINANCIAL 2014 Renter Occupied Housing Units 34.06% 28.23% 23.91% 2014 Vacant 5.00% 5.93% 6.06% 2019 Owner Occupied Housing Units 65.74% 71.60% 76.16% 2019 Renter Occupied Housing Units 34.26% 28.40% 23.84% 2019 Vacant 4.80% 5.71% 5.76% MARKET OVERVIEW

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. References to square footage or age are 13 approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID T0000000 EXECUTIVE PROPERTY FINANCIAL MARKET SUMMARY DESCRIPTION ANALYSIS OVERVIEW 14 ACT ID T0000000 ACT Chicken Express Chicken Housing Housing and area in your units housing occupied 7,293 owner were 2000, there In median The area. in your units housing occupied 2,048 renter were there $433. the time was at rent Employment this also selected is known area, in your employees 7,445 are 2014, there In of 56.09% revealed 2000 The that Census population. the daytime as and in this geography, occupations in white-collar employed are employees 2014, unemployment In occupations. in blue-collar employed 43.76% are 34.5 was work to time traveled 2000, the average 6.23%. In is in this area minutes. Race Ethnicity and 92.20% follows: as is area selectedyour of racialyear makeup The current Asian/Pacific 0.73% and American Native 0.04% Black, 0.99% White, White, 71.60% which are: US averages these Entire to Compare Islander. Islander. 5.02% Asian/Pacific and American 0.18% Native 12.70% Black, of People race. of independently counted are origin Hispanic of People your in population year the current 9.87% of up make origin Hispanic 17.13%. of US average the Entire this to Compare selected area. 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. References to square footage or age are are age or footage to square References to accuracyas the of information. the or implied, expressed or warranties, representations no make we but reliable, to we be believe has been sources secured from information This or the current represent do not purposes and only example for are used herein estimates or assumptions opinions, projections, inaccuracies. Any any bears all for risk and verify the information must Buyer approximate. & Millichap Services, © 2014 Marcus Inc. Investment Real Services Estate & Millichap a service is Marcus of Investment Real mark Estate & Millichap Marcus the property. of performance future

Income is selected geography your for income household the2014, median In $51,972. currently which is average US the Entire this to $59,453, compare by 32.77% since changed has area your for income household median The will be area in your income household the median that estimated is 2000. It the 16.51% of from change a represents which now, years from five $69,272 year. current to this compare is $30,651, area your in income year per capita The current household average year $28,599. The which is current US average, the Entire which average US the Entire this to compare $79,561, is area in your income $74,533. is There are currently 12,594 households in your selected geography. The geography. selectedyour in households 12,594 currently are There estimated is 2000. It 34.80% since by changed has households of number years from will be area 13,820 five in your households of the number that average The year. the current from 9.73% of change a whichrepresents now, 2.60 persons. is area size in your household Households Households Population 32,834. The is population selected geography in your 2014, the population In in the population that estimated is It 2000. 31.79% since by changed has change a represents which now, years from will be area five 35,800 your maleis 49.31% population The current year. thecurrent 9.03% from of is 41.9, area your in of the population age median The 50.68% female. and density 37.3. The which is population US average the Entire this to compare mile. per people 418.10 is square area in your eography: 5 Miles eography: G Demographic Summary Demographic Demographic data © 2015 by Experian/Applied Geographic Solutions. Geographic Experian/Applied © 2015 by data Demographic MARKET OVERVIEW MARKET exclusivelyExclusively listed by: Investment Sales: listed Philip Levy Blake Davis First Vice President Investments Associate Tel: (817) 932-6123 Tel: (817) 932-6120 Fax: (817) 380-1153 Fax: (817) 380-1153 [email protected] [email protected]

OFFICES NATIONWIDE www.marcusmillichap.com