CARL’S JR. RESTAURANT

22580 Cactus Avenue

DAVE DELATORRE Moreno Valley, CA 92553 Cell 619.247.8585 Email - [email protected] EXECUTIVE SUMMARY Carl’s Jr. NNN Investment

PROPERTY Carl’s Junior & Green Burrito Restaurant LOCATION 22580 Cactus Avenue, Moreno Valley, CA 92553 SALES PRICE $4,390,000 CAPITALIZATION RATE 3.7%

RENT Year 1 Years 2-6 Years 7-11 Years 12-16 Monthly Rent $12,304(1) $13,535 $14,888 $16,377 Annual Rent $147,655(1) $162,421 $178,663 $196,539 BUILDING SIZE Approximately 3,492 square feet free standing restaurant building with a drive thru originally constructed in 1992 and remodeled in 2014. LAND PARCEL SIZE Approximately 40,946 square feet plus reciprocal access and parking within the Cactus Avenue Retail Center PRIMARY LEASE TERM Approximately 16 year primary lease term as of March 1, 2021. RENTAL INCREASES Fixed ten (10%) increase in March 1, 2022 then fifteen (15) additional years with 10% fixed increases every 5 years. OPTIONS TO EXTEND Four (4) additional five-year options with fixed ten (10%) increases every 5 years. RENT GUARANTEE (1) Seller shall credit the buyer with the difference in monthly rent of $1,230 from the COE until the next rent adjustment date of March 1, 2022.

DAVE DELATORRE 2 Cell 619.247.8585 Email - [email protected] CARL’S JR. RESTAURANT HISTORICAL INFORMATION Carl’s Jr. NNN Investment

TENANT INFORMATION The tenant under the Moreno Valley Carl’s Jr. Restaurant is Carl’s Jr. Restaurants LLC, A Delaware Limited Liability Company as successor in interest to Carl Karcher Enterprises Inc., a California Corporation (the “Tenant”)

What began as a lone hot dog cart in Los Angeles, Calif. in 1941 is today an international organization that employs nearly 30,000 people worldwide. Carl’s Jr. is a wholly owned subsidiary of CKE Restaurants, Inc. (NYSE: CKR) of Franklin, Tennessee. CKE Restaurants, Inc., through its subsidiaries, has a total of more than 3,800 franchised or company-owned restaurants in 44 states and in 43 foreign countries and U.S. territories, including more than 1,600 Carl’s Jr. restaurants and more than 2,200 Hardee’s® restaurants.

Founded in 1941 by industry pioneer Carl N. Karcher, Carl’s Jr.® has consistently stood for quality and innovation. Operating under the essential philosophy that consumers will pay more for quality and taste, the Carl’s Jr.® brand is a leader in both average guest check and gross margins. Carl’s Jr.’s® long history of industry innovations have included enhancements to the customer experience, including partial table service, the dual- branding concept, and inventive restaurant design - not to mention the numerous industry-defining products that have graced the menu over the years. Carl’s Jr.’s® dual-branding program with CKE Restaurants’ quick-service Mexican brand, Green Burrito®, provides for increased variety and market share. Carl’s Jr.® advertising has been a key part of its success in its ability to connect with the lifestyle and attitude of its target market and encourage sales of its higher- priced, higher-margin premium burgers.

1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010s

Carl Karcher and his Business blossoms The 60s brought By 1977, more than The 80s saw more Now operating In the 2000s, Carl’s Over the last wife Margaret invest and Carl opens vast expansion for 200 locations served expasion for Carl’s under Carl Karcher Jr. introduced decade, Carl’s Jr. has their entire savings to the first two Carl’s the Karchers, who California, and Jr., as well as the Enterprises (CKE), some of its most continued to push buy a hot dog cart. Jr.® restaurants in operated 24 Carl’s Carl’s Jr. became introduction of the Carl’s Jr. continued iconic menu items, boundaries -- From Within five years, the Anaheim, opening Jr.’s and became the first quick-serve iconic Western Bacon burger domination including the Six being the first QSR Karchers open their two more locations Carl Karcher restaurant to offer Cheeseburger in as it opened more Dollar Burger, Hand- to have a plant- first restaurant. within the decade, Enterprises, Inc., as salad bars at all 200 1988. By the end of locations throughout Scooped Milkshakes, based burger at all and introducing they renovated all locations. In 1979, the decade, there the states and and Charbroiled restaurants to the the bright yellow dining rooms and the company opened were more than 534 internationally. In Turkey Burgers -- introduction of the star sign. streamlined menus. its first out-of-state restaurants, and 1997, CKE acquired An industry first. irst-ever CBD infused location in Las Vegas. Carl’s Jr. opened its Hardee’s restaurants, burger. first international expanding business location in Mexico. by ~2,500 locations.

DAVE DELATORRE 3 Cell 619.247.8585 Email - [email protected] EXECUTIVE SUMMARY Carl’s Jr. NNN Investment

COMMENTS The Moreno Valley Carl’s Jr. restaurant is Base is a key military asset located on over California with residential population growth extremely well located in the heart of Moreno 2,000+ acres that operates as the Air Force rates approaching 4.0% annually. Moreno Valley Valley’s retail & industrial distribution centers Reserve Commands largest air mobility wing offers an ideal location at the intersection of as well as the entrance to March Air Force Base. for the Air Force, Army, Navy, Marine Corps, and Interstate 215 and State Route 60, enabling The Carl’s Jr. restaurant features a large 3,492 Air National Guard. It is also home of the March same day access to Los Angeles, Orange Square Foot building with an excellent drive AFB Museum and hosts the annual March AFB County, San Diego, Northern California, Nevada, thru lane on approximately 41,000 Square Air & Space expo ceremonies. and Arizona. Moreno Valley is considered a Foot land parcel which is a pad with reciprocal “pro-business” city that encourages growth and access within the Cactus Avenue Retail Center. Moreno Valley is home to many Fortune 500 & new development with over 2 million people The Carl’s Jr. has successfully operated in this international companies who have some of the with a 20-minute radius. location since 1992 so it has a nearly 30 year Inland Empire’s largest industrial & distribution history of successful operations in the location facilities. Many of these facilities operate and the original lease has been extended “around the clock” which creates strong twice which demonstrates Carl’s Jr. strong lunchtime and also evening demand at the commitment to the Moreno Valley location. Moreno Valley location. There is heavy traffic along Cactus Avenue and the intersection of The Carl’s Jr. is surrounded by dense residential Cactus & Elsworth Avenues approach 50,000 neighborhoods to the north & east whose cars per day. The Moreno Valley Carl’s Jr. has residents must travel through along Cactus a very strong lunchtime and dinner business Avenue when accessing the 215 freeway in the combined with a successful breakfast business AM & also when residents return home to their which allows the Moreno Valley Carl’s Jr. neighborhoods in the evening hours. The Carl’s restaurant to operate 24 hours per day. Jr. is also located directly across from the main entrance to the March AFB which makes the Moreno Valley is the second largest city in Carl’s Jr. the restaurant of first choice for March Riverside County and has been ranked as AFB residents and employees. March Air Force one of the fastest growing cities in Southern

DAVE DELATORRE Cell 619.247.8585 Email - [email protected] CARL’S JR. AERIAL PHOTO Carl’s Jr. NNN Investment

CACTUS AVENUE - 40,600 CARS PER DAY

Traffic Counts DAVE DELATORRE Cactus Avenue at Elsworth (1 Block East) 40,600 CPD 5 Cell 619.247.8585 I-215 at Cactus Avenue 130,000 CPD Email - [email protected] MAPS & AERIALS Carl’s Jr. NNN Investment 6,700 CPD 6,700

CACTUS AVE OFFICE RETAIL CENTER BUILDING ELSWORTH AVE - AVE ELSWORTH

CACTUS AVENUE - 40,600 CPD

Demographics 1 Miles 3 Miles 5 Miles DAVE DELATORRE Population 00,000 00,000 00,000 6 Cell 619.247.8585 Avg. HHI $00,000 $00,000 $00,000 Email - [email protected] Est. Population 00,000 00,000 00,000 Day Time Population 00,000 00,000 00,000 MAPS & AERIALS Carl’s Jr. NNN Investment

MORENO VALLEY MALL

60

PLATT COLLEGE RIVERSIDE

RIVERSIDE 215 UNIVERSITY HEALTH SYSTEM CACTUS AVENUE

MARCH AIR RESERVE BASE

DAVE DELATORRE City of Moreno Valley Demographic Information 2020 2025 7 Cell 619.247.8585 Population 207,809 217,528 Avg. HHI $80,219 $90,705 Email - [email protected] Total Employees 104,000+ TRADE AREA Carl’s Jr. NNN Investment

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DAVE DELATORRE 8 Cell 619.247.8585 Email - [email protected] TRADE AREA Carl’s Jr. NNN Investment

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DAVE DELATORRE 9 Cell 619.247.8585 Email - [email protected] CITY OF MORENO VALLEY Carl’s Jr. NNN Investment

Once an infant among California cities, now an emerging giant within the ranks of national urban growth, the City of Moreno Valley is home to 210,639 residents. Among California’s growing cities; second most populous in Riverside County. Growth can be attributed to a range of quality housing options including high-end executive homes, affordable single-family homes, and condominiums; a family-friendly lifestyle; good schools, impressive quality- of-life amenities and growing job centers.

Moreno Valley’s amenities include: more than 38 parks and/ or joint-use facilities (531 maintained acres) and 6,000 acres of open space at Lake Perris; recreational facilities, major medical, and educational facilities; quality housing at affordable prices, open spaces, abundant retail centers, industrial developments, social and cultural activities.

California’s largest ever industrial development project is coming to the city of Moreno Valley. The 2,610-acre World Logistics Center campus is designed to support global logistics operations with advanced technologies and innovative architecture.

DAVE DELATORRE 10 Cell 619.247.8585 Email - [email protected] DAVE DELATORRE Cell 619 247 8585 Email - [email protected]

7486 La Jolla Boulevard, Suite 173 La Jolla, California 92037