Meridian, Idaho

Jakers Bar & Grill MERIDIAN, IDAHO

JAKERS IS A RECOGNIZED REGIONAL BRAND IN A PREMIER RETAIL DESTINATION CORRIDOR Overview

Jakers Bar & Grill

3268 E PINE AVE, MERIDIAN, IDAHO 83642 PAGE 5

Investment Summary

LEASEABLE SF LAND AREA LEASE TYPE 5,916 SF 59,677 SF Absolute NNN

YEARS REMAINING YEAR BUILT PARKING ± 9 Years 2007 89 Spaces; 12.58/1,000 SF

$3,300,000 6.25% PRICE CAP

THE OFFERING provides the opportunity to acquire Jakers Bar and Grill, a 5,916 square foot single tenant restaurant, operating with frontage on a prominent daily- needs and retail corridor near Idaho’s highest-trafficked intersection. The building is an attractive, high quality built-to-suit for Jakers constructed in 2007. Overview Investment Highlights

The highlights

JAKERS IS A PRIVATELY-OWNED, REGIONAL RESTAURANT WITH SIX LOCATIONS OPERATED BY THE ORIGINAL OWNER FOR 40+ YEARS.

9 YEARS REMAINING ON PRIMARY 20-YEAR TERM ON ABSOLUTE NET LEASE.

ANNUAL 2% RENT INCREASES.

EXTREMELY STRONG DRAW TO THE TRADE AREA PROVIDED BY NEARBY VILLAGE AT MERIDIAN, IDAHO’S PREMIER SHOPPING CENTER. PAGE 7

TENANT DEMONSTRATES STRONG SALES TO RENT RATIO AT THIS LOCATION

LOCATED OFF PROMINENT NORTH-SOUTH DAILY-NEEDS CORRIDOR IMMEDIATELY SOUTH OF THE HIGHEST-TRAFFICKED INTERSECTION IN THE STATE.

DENSE, HIGHLY-AFFLUENT SURROUNDING RESIDENTIAL BASE OF 221,000 RESIDENTS WITHIN A 5-MILE RADIUS EARNING ROUGHLY $78,000.

MERIDIAN IS EXPERIENCING SIGNIFICANT GROWTH WITH AN ESTIMATED 21,000 NEW HOUSING UNITS SLATED FOR DEVELOPMENT BETWEEN 2017-2022.

BOISE IS BOOMING, CLICK HERE FOR THE ARTICLE.

Investment Highlights Site

51,000 VPD 225,000 SF office and retail expansion slated for Spring 2018.

HIGHEST TRAFFICKED INTERSECTION IN IDAHO (100,000 VPD) E FAIRVIEW AVENUE MERIDIAN CROSROADS

N EAGLE ROAD

55 11,636 VPD

E PINE AVENUE JAKERS BAR & GRILL

ALBERTSONS DISTRIBUTION 55 CENTER PAGE 9

CLOSE PROXIMITY TO VILLAGE AT MERIDIAN, AN UPSCALE REGIONAL DESTINATION SHOPPING CENTER

Site Surrounding Employers Business summary

TOTAL 1-MILE 3-MILES 5-MILES

Businesses 558 3,811 7,571

Employees 9,136 47,185 103,643

Population 3,506 95,707 221,163

KEY 1-MILE 3-MILES 5-MILES

SURROUNDING RETAIL SURROUNDING EMPLOYERS Hobby Lobby Albertsons DC (Employment: 1,565) Kohl’s Blue Cross of Idaho (Employment: 850) Lowe’s El Dorado Business Park (Employment: 5,000) Mattress Firm Jackson Food Stores (Employment: 1,565) Walgreens Scentsy (Employment: 1,090) Walmart SuperCenter Silverstone Business Park (Employment: 5,000) Winco (Incoming) St. Luke’s (Employment: 12,825)

THE VILLAGE AT MERIDIAN Big Al’s Nike Factory Outlet H&M Petco Marshalls Village Cinema Michael’s

MERIDIAN CROSSROADS Bed Bath & Beyond Old Navy Dollar Tree Ross Dress for Less Market Street Idaho Sportsman’s Warehouse 55 PAGE 11 E USTICK ROAD

51,000 VPD

HIGHEST TRAFFICKED INTERSECTION

IN IDAHO N EAGLE ROAD (100,000 VPD) E FAIRVIEW AVENUE MERIDIAN CROSROADS

11,636 VPD JAKERS E PINE AVENUE BAR & GRILL

ALBERTSONS DISTRIBUTION CENTER

INTERSTATE 84 84

SILVERSTONE BUSINESS PARK S EAGLE ROAD S EAGLE EL DORADO BUSINESS PARK Area Development

Population Growth MERIDIAN’S POPULATION HAS TRIPLED IN SIZE SINCE 2000, earning the spot as the fastest-growing city in Idaho, and the 13th in the U.S. Meridian saw a 10% increase in population between 2016-2017 alone, and is not expected to slow down.

Developments

HOUSING DEVELOPMENTS THE CITY’S STAGGERING POPULATION GROWTH IS driving new residential and commercial developments. Meridian has 62 new housing (single and multi- family) communities and 3,481 housing units currently in development in an effort to keep pace with the population growth. City Planners estimate 21,000 additional new housing units will be developed between 2017-2022.

RETAIL DEVELOPMENTS 1. WINCO – S Eagle Road & E Overland Road Status: Approved (Status is pending)

2. THE VILLAGE AT MERIDIAN EXPANSION– Fairview Avenue & Eagle Road Status: 225,000 SF expansion - Tenants slated for Spring-Summer 2018

3. IDAHO COLLEGE OF OSTEOPATHIC MEDICINE - I-84 & Locust Grove Road Status: August 2018 Opening PAGE 13

JAKERS BAR & GRILL

N EAGLE ROAD

84 3 55 INTERSTATE 84 84 1

Meridian in MERIDIAN EXPECTED TO SEE BIG HOUSING BOOM. CLICK HERE FOR ARTICLE. the News 8,928 VPD Q

N EAGLE ROAD Site Plan Conditions (RECs)wereidentifiedatthattime. in January2002,andnoRecognized Environmental completed byWestec Engineering&Inspection Corporation A: Yes, aPhaseIEnvironmentalSiteAssessment (ESA) was AT THEPROPERTY? HAS THEREBEENANYENVIRONMENTAL TESTING E PINEAVENUE PROFESSSIONAL LEASE SPRING AVAILABLE TO EAGLE PINE CENTER 2018 16,705 VPD LEASEABLE SF 12.58/1,000 SF 89 SPACES; ACRES 5,916 1.37 PAGE 15

SITE PLAN NOT TO SCALE

Construction CONSTRUCTION TYPE: Steel structure – built-to-suit ROOF: Flat, built-up membrane Details FOUNDATION: Concrete slab on grade EXTERIOR WALLS: EIFS with faux stone buttress accenting at main entrance AWNINGS: Metal awnings with attractive wood shingles attached around building circumference DOORS: Swinging glass, with aluminum frame WINDOWS: Fixed, dual-pane glass with aluminum frame HVAC: 5 roof-mounted units PATIO: Addition of 616 SF patio in 2014

Site Plan About the Tenant

Jakers is a successful restaurant brand with a strong tie About to Idaho. Owner and Operator Jake Jones opened his Jakers first restaurant “Jake’s” in Pocatello, Idaho in 1975, and sold a few years later to new ownership. Jones later opened the first Jakers Bar and Restaurant in Idaho Falls in 1978, which has since expanded to an additional five locations in Idaho and Montana. PAGE 17

Jones co-owns the Jakers restaurant portfolio alongside co-owner and restaurateur Justin Philbrick, brought on Unique board in 2009. Philbrook worked his way up, starting his Partnership career as a Jakers prep cook and advancing to assistant Manager, General Manager, Supervisor, then Director of Jakers Operations and co-owner. The pair also own and operate the only two Red Robin restaurants in Montana. Locations

6 7

3 2 PAGE 19

Jakers Bar & Grill Portfolio

JAKERS BAR & GRILL HAS 6 LOCATIONS across Idaho and Montana, and they also own and operate the only two Red Robin restaurants in Montana, located in Missoula and Billings.

Jakers Locations

1. MERIDIAN, ID 2. TWIN FALLS, ID

3. POCATELLO, ID 4. IDAHO FALLS, ID

5. MISSOULA, MT 6. GREAT FALLS, MT

Red Robin Locations

7. RED ROBIN 8. RED ROBIN 2901 Brooks St 1595 Grand Ave #210 Missoula, MT Billings, MT

Locations Income & Expense

Financial Summary

PRICE $3,300,000 CAPITALIZATION RATE 6.25%

CASH FLOW SUMMARY SCHEDULED INCOME PER SF Base Rent for the Period of: 5/1/2018 - 4/30/2019 $34.94 $206,711 Total Effective Gross Income (EGI) $34.94 $206,711

OPERATING EXPENSES Per SF CAMS NNN Property Taxes NNN Insurance NNN Total Operating Expenses NNN -

NET OPERATING INCOME $206,711 *Pricing based on Year 1 income.

5/17/2018 [ ]

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. Rent Roll

PAGE 21

Rent roll

JAKERS BAR AND GRILL

Lease Term: 4/13/2007 - 4/12/2027

Size (SF): 5,916

RENT SUMMARY

MONTHLY ANNUAL DATE % INCREASE PSF CAP RATE BASE RENT RENT

4/13/2018 $17,226 $206,711 $34.94 6.25% 4/13/2019 $17,570 2% $210,845 $35.64 6.39% 4/13/2020 $17,922 2% $215,062 $36.35 6.52% 4/13/2021 $18,280 2% $219,363 $37.08 6.65% 4/13/2022 $18,646 2% $223,751 $37.82 6.78% 4/13/2023 $19,019 2% $228,226 $38.58 6.92% 4/13/2024 $19,399 2% $232,790 $39.35 7.05% 4/13/2025 $19,787 2% $237,446 $40.14 7.20% 4/13/2026 $20,183 2% $242,195 $40.94 7.34% 4/13/2027 $20,587 2% $247,039 $41.76 7.49% 4/13/2028 $20,998 2% $251,979 $42.59 7.64%

OPTIONS 2, 5-YR See Comment 180-Day Notice

CURRENT $17,226 $206,711 $34.94 6.25% Lease Notes Comments: Pricing based on Year 1 income. Absolute NNN lease structure - Tenant is responsible for 100% of all operating expenses and maintenance, repair, and replacement to the premises and building structure; Landlord has zero responsibilities.

5/17/2018 [ ] Summary Lease Abstract

Premise & Term TENANT Jakers of Meridian, LLC dba Jakers Bar and Grill BUILDING SF 5,916 SF LEASE TYPE Absolute Net LEASE COMMENCEMENT April 13, 2007 EXPIRATION April 12, 2027 TERM 20 Years OPTIONS 2, 5-YR Options; 180-Day Notice GUARANTY Personal Guaranty

Rent BASE RENT Annual 2% Rent Increases 4/13/2018-4/12/2019 $29.22/SF

OPTIONS 2, 5-YR OPTIONS: Rent to increase annually the greater of 2% or CPI increase from the previous year. PAGE 23

TAXES Expenses Tenant is responsible for payment of 100% of taxes directly to billing authority.

INSURANCE Tenant maintains property insurance.

UTILITIES Tenant is responsible for direct payment of all utilities.

TENANT’S OBLIGATIONS Tenant is responsible for all maintenance and repair to the interior and exterior of the premises, including 100% of common area maintenance and repair, replacement, and maintenance of the building roof, structure, foundation, and all mechanical, electrical, and plumbing systems.

LANDLORD’S OBLIGATIONS Landlord has zero responsibilities.

ASSIGNMENT/SUBLETTING Lease Tenant may not assign or sublease without the prior provisions written consent of Landlord.

TENANT FINANCIALS Tenant to provide annual Profit & Loss Statements and Balance Sheets for the operating entity.

Lease Abstract Featured Photography PAGE 25

Featured Photography Location Boise, Idaho MSA

BOISE IS THE CAPITAL AND MOST POPULOUS CITY of the state of Idaho, as well as the county seat of Ada County. Located on the Boise River, it anchors the Boise City-Nampa metropolitan area and is the largest city between Salt Lake City, Utah and Portland, Oregon. The Boise metropolitan area is home to approximately 616,500 people and is the most populous metropolitan area in Idaho, containing the state’s three largest cities; Boise, Nampa, and Meridian. PAGE 27 Corporate Headquarters

BOISE IS THE HEADQUARTERS FOR several major companies, such as Boise Cascade LLC, Albertsons, J.R. Simplot Company, Idaho Pacific Lumber Company, Idaho Timber, WinCo Foods, Bodybuilding.com, and Clearwater Analytics. Other major industries are headquartered in Boise or have large manufacturing facilities present. The state government is also one of the city’s largest employers.

Meridian, MERIDIAN is the third largest city in Idaho and is considered the state’s fastest-growing city and among the fastest-growing Idaho cities in the United States.

93,000 80% 11th

NEW JOBS IN IDAHO POPULATION 11TH FASTEST GROWING replacing 60,000 lost during the recession GROWTH SINCE 2000 POPULATION IN THE U.S.

Location Demographics

KEY 5 MINS 10 MINS 15 MINS

Distance Boise, Nampa, to Idaho Idaho

10.9 MILES 13.5 MILES 14 MINS 23 MINS PAGE 29

Drive time

POPULATION

5 MINS 10 MINS 15 MINS

2010 7,709 103,105 238,417

2017 8,592 118,040 276,327

2022 9,273 129,876 302,930

2017 HH INCOME

5 MINS 10 MINS 15 MINS

Average $73,999 $79,520 $75,639

Median $83,804 $88,693 $84,159

434,211

ADA COUNTY POPULATION (ESTIMATED)

Demographics Contact Us We’d love to hear from you.

KEVIN ADATTO MICHAEL HORWITZ [email protected] [email protected] PH: 503.675.7726 PH: 503.675.8381

SEAN MACK PETER DUNN [email protected] [email protected] PH: 503.675.8378 PH: 503.607.0197

SEAN TUFTS [email protected] PH: 206.693.3352

The information in this Executive Summary 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. All rights reserved to Capital Pacific, LLC.