11 YEAR ABSOLUTE NET CORPORATE GUARANTEED INVESTMENT OFFERING

LONGHORN (GL) 4845 Valley View Blvd NW Roanoke, Virginia 24012 TABLE OF CONTENTS

TABLE OF CONTENTS

I. Executive Profile II. Location Overview III. Market & Tenant Overview Property Overview Photographs Demographic Report Investment Highlights Aerial Market Overview Executive Summary Site Plan Tenant Overview Map

CORPORATE GUARANTEED INVESTMENT OFFERING PROPERTY OVERVIEW

PROPERTY Price: $1,938,095 OVERVIEW: Cap Rate: 5.25% Net Operating Income: $101,750* 2024 Net Operating Income: $106,700 2024 Cap Rate: 5.50% Rental Escalations: 5% on 9/01/2024 Renewal Options: Four 5-Year (10% in each option) Lease Expiration: 8/31/2029 Tenant: RARE Hospitality Management d/b/a LongHorn Steakhouse (Wholly owned subsidiary of Darden , Inc.) Year Built: 2011 Lease Type: Ground Lease Building Size: 6,231 SF Land Size: 1.13 Acres (Estimate)

*NOI Includes a $2,750 shopping center “maintenance contribution” paid by tenant. Landlord is entitled to collect the “main- tenance charge” without offset.

**A lease extension is currently approved, however the amendment documenting the extension is pending.

CORPORATE GUARANTEED INVESTMENT OFFERING INVESTMENT HIGHLIGHTS

INVESTMENT Location Highlights HIGHLIGHTS: • Outparcel to Valley View Mall, a 800,000 square foot regional shopping mall anchored by Macy’s, JCPenney, Belk and Sears

• Located just off of Interstate 581 (60,000 VPD)

• Other retailers in the immediate area include a Walmart Supercenter, Target, Best Buy, Regal Cinema and Home Depot

• Near numerous schools including William Fleming High School (1,582 students), William Ruffner Middle School, Breckingridge Middle School, Preston Park Elementary School and Round Hill Elementary School

• In close proximity to the Roanoke-Blacksburg Regional Airport and Advance Auto Parts Corporate Headquar- ters

Tenant Highlights • Approximately 11 years remaining on lease

• No landlord responsibilities – NNN Ground Lease

• Corporate lease

• 10% rental escalations in each option

• 5% rental escalation in 2024

CORPORATE GUARANTEED INVESTMENT OFFERING EXECUTIVE SUMMARY

EXECUTIVE The Boulder Group and Lee & Associates are pleased to exclusively market for sale a single ground leased LongHorn SUMMARY: Steakhouse property located in Roanoke, Virginia. The ground lease is corporately guaranteed by LongHorn Steakhouse and has approximately 11 years remaining in the primary term. The lease features 10% rental escalations in each option and requires no landlord responsibilities. Additionally, there are four 5-year renewal options. There is a 5% rental escalation in 2024.

The LongHorn Steakhouse property is strategically located in a regional trade area and is an outparcel to Valley View Mall, a 800,000 square foot regional shopping mall anchored by Macy’s, JCPenney, Belk and Sears. The property is located just off Interstate 581 (60,000 VPD) near numerous other retailers including a Walmart Supercenter, Target, Best Buy, Regal Cinema and Home Depot. William Fleming High School (1,582 students), William Ruffner Middle School, Breckingridge Middle School, Preston Park Elementary School and Round Hill Elementary School are all located close to the property generating consistent traffic to the site. The LongHorn Steakhouse is also in close proximity to the Roanoke-Blacksburg Regional Airport, multiple hotels and the Advance Auto Parts Corporate Headquarters.

LongHorn Steakhouse is known for a “Passion for Grilling” fresh, tender, juicy and offers guests the widest variety of cuts and numerous preparations, including its signature bone-in Outlaw Ribeye, all served in a relaxed, warm atmosphere inspired by a rancher’s home. LongHorn Steakhouse has more than 490 restaurants across 40 states. The tenant is RARE Hospitality Management, a wholly owned subsidiary of , Inc., doing business as LongHorn Steakhouse. Darden Restaurants, Inc. is publicly traded (NYSE: DRI) with a market capitalization in excess of $13* billion and is and investment grade rated company (Standard & Poor’s: BBB)*.

*As of August 2018

CORPORATE GUARANTEED INVESTMENT OFFERING PHOTOGRAPHS

CORPORATE GUARANTEED INVESTMENT OFFERING AERIAL

CORPORATE GUARANTEED INVESTMENT OFFERING AERIAL

CORPORATE GUARANTEED INVESTMENT OFFERING SITE PLAN

CORPORATE GUARANTEED INVESTMENT OFFERING MAP

Roanoke’s location allows for deliv- ery within one day to most mar- kets in the Southeast, Northeast, Mid-Atlantic, and Ohio Valley Roanoke’s economy developed around the Norfolk and Western Railroad, with a strong emphasis on HEADQUARTERS manufacturing Numerous hotels and business travelers in the trade area due to its location near airport

CORPORATE GUARANTEED INVESTMENT OFFERING DEMOGRAPHIC REPORT

DEMOGRAPHIC 2010 Population 1-Mile 3-Mile 5-Mile REPORT: Total Population 7,379 67,926 136,700 Total Households 3,193 28,711 58,402 Famlies 1,831 16,425 34,094

2018 Population 1-Mile 3-Mile 5-Mile

Total Population 7,781 70,453 141,956 Total Households 3,305 29,643 60,334 Famlies 1,877 16,665 34,692

Income

Median Household Income $36,108 $36,455 $42,833 Average Household Income $44,961 $47,865 $57,891 Annual Population Growth 0.44% 0.36% 0.38%

2023 Population (Estimate) 1-Mile 3-Mile 5-Mile

Total Population 7,954 71,738 144,693 Total Households 3,361 30,149 61,395 Famlies 1,901 16,819 35,075 Median Household Income $39,720 $40,385 $48,391 Average Household Income $52,011 $55,516 $67,451

CORPORATE GUARANTEED INVESTMENT OFFERING MARKET OVERVIEW

MARKET Roanoke, Virginia OVERVIEW: Roanoke is an independent city in the U.S. state of Virginia. As of the 2010 census, the population was 97,032. It is located in the Roanoke Valley of the Roanoke Region of Virginia. Roanoke is the largest municipality in Southwest Virginia, and is the principal municipality of the Roanoke Metropolitan Statistical Area (MSA), which had a 2010 population of 308,707. It is composed of the independent cities of Roanoke and Salem, and Botetourt, Craig, Franklin, and Roanoke counties. Bisected by the Roanoke River, Roanoke is the commercial and cultural hub of much of Southwest Virginia and portions of Southern West Virginia.

Roanoke’s economy developed around the Norfolk and Western Railroad, with a strong emphasis on manufacturing. Roanoke’s economic history also includes Sun Belt characteristics, as it was once a center for the garment industry. Surrounding areas have relied on traditional industries of the rural South such as textiles and furniture manufacturing, which have lost jobs to offshore outsourcing. The city is the health care and retail hub of a large area, driving the expansion of Carilion Health System and Valley View Mall. Advance Auto Parts is headquartered in Roanoke and has expanded through the acquisition of other chains to become one of the largest auto parts retailers in the country. Roanoke’s location allows for delivery within one day to most markets in the southeast, northeast, mid-atlantic, and Ohio Valley, which has made it a distribution center for such companies as Orvis, Elizabeth Arden, and Hanover Direct. United Parcel Service (UPS) maintains a major facility at the Roanoke Regional Airport.

CORPORATE GUARANTEED INVESTMENT OFFERING TENANT OVERVIEW

TENANT LongHorn Steakhouse OVERVIEW: LongHorn Steakhouse is known for fresh, boldly seasoned and expertly grilled steaks – like the signature bone-in Outlaw Ribeye® – all served in a relaxed, warm atmosphere inspired by a rancher’s home. Founded in 1981 in , Georgia, the began with one man’s passion for perfect but had very few guests to convince. Then a freak snowstorm hit Atlanta in 1982, stranding motorists and drawing them to one of the only hospitable places available - a restaurant then called LongHorn Steaks Restaurant & Saloon. Tales of expertly grilled steaks soon spread like wildfire, and the legend of LongHorn was born.

By 1990, the restaurant had spread throughout the East, Midwest and Southwest and Puerto Rico. In 2007, the restaurant, now called LongHorn Steakhouse, was purchased by Darden Restaurants, Inc. (NYSE: DRI). Today, LongHorn Steakhouse is headquartered in Orlando, Florida and has more than 480 restaurants across 40 states.

Website: www.longhornsteakhouse.com Number of Locations: 480+ Founded: 1981 Headquarters: Orlando, Florida Parent Company: Darden Restaurants, Inc. (NYSE: DRI)

RARE Hospitality International, Inc. (RARE) RARE Hospitality International, Inc. (RARE) is a wholly-owned subsidiary of Darden Restaurants, Inc. It owns and operates substantially all of Darden’s LongHorn Steakhouse and restaurants, either directly, or through subsidiaries, including RARE Hospitality Management, Inc. (RHM), a wholly-owned subsidiary of RARE, and Capital Grille Holdings, Inc., a wholly-owned subsidiary of RHM. RARE has other direct and indirect subsidiaries that own and operate certain restaurants and were formed primarily for purposes of complying with state liquor licensing laws, for management of overhead and other corporate expenses.

CORPORATE GUARANTEED INVESTMENT OFFERING TENANT OVERVIEW

TENANT Darden Restaurants, Inc. OVERVIEW: Darden Restaurants, Inc. is the premier full-service restaurant company featuring a portfolio of category-leading brands that include , LongHorn Steakhouse, , , The Capital Grille, Eddie V’s and . Each of its brands enjoys industry-leading average unit volumes that together generate approximately $8 billion in annual sales across more than 1,500 locations. Headquartered in Orlando, Florida, Darden employs more than 200,000 team members who serve more than 320 million meals annually. Darden has been named to the FORTUNE “100 Best Companies to Work For” list on an annual basis.

Darden Restaurants, Inc. is a publicly traded company on the New York Stock Exchange using the symbol “DRI”. The company is investment grade rated with a Standard & Poor’s rating of BBB.

Website: www.darden.com Founded: 1938 Number of Locations: 1,500+ Stock Symbol: DRI (NYSE) Credit Rating (S&P): BBB ® Headquarters: Orlando, Florida

CORPORATE GUARANTEED INVESTMENT OFFERING DISCLAIMER STATEMENT

DISCLAIMER The information contained in the following Offering Memorandum is proprietary and strictly confidential. It STATEMENT: is intended to be reviewed only by the party receiving it from The Boulder Group and/or Lee & Associates and should not be made available to any other person or entity without the written consent of The Boulder Group and/or Lee & Associates.

This Offering Memorandum 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. The Boulder Group and Lee & Associates has not made any investigation, and makes no warranty or representation.

The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group and Lee & Associates have not verified, and will not verify, any of the information contained herein, nor has The Boulder Group or Lee & Associates 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.

CORPORATE GUARANTEED INVESTMENT OFFERING Randy Blankstein President 847.562.0003 [email protected]

John Feeney Senior Vice President 847.562.9280 [email protected]

3520 Lake Avenue, Suite 203 Wilmette, IL 60091

www.bouldergroup.com

Daniel Barnes Principal 314.400.4004 [email protected]

1 McBride & Son Center Dr, Suite 140 St. Louis, MO 63005

www.lee-associates.com