' CORPORATE GUARANTEE

Representative Photo

OFFERING MEMORANDUM RINGGOLD, | CHATTANOOGA MSA

EXCLUSIVELY LISTED BY: JOSEPH BLATNER Senior Vice President 503.200.2029 [email protected] BOJANGLES’ | RINGGOLD, GA

CONFIDENTIALITY 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved. NON-ENDORSEMENT NOTICE 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. NET LEASED DISCLAIMER Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

GEORGIA BROKER OF RECORD: Tim Giambrone | Lic.# 265556 ACTIVITY ID: ZAA0210547

2 BOJANGLES’ | RINGGOLD, GA

TABLE OF CONTENTS

ABOUT THE PROPERTY 01 02 INVESTMENT SUMMARY PROPERTY DETAIL PAGE 4 PAGE 7 Executive Summary Property Summary Rent Roll Aerial Map Tenant Overview

ABOUT THE MARKET 03 MARKET OVERVIEW PAGE 11 Location Overview Demographics

3 BOJANGLES’ | RINGGOLD, GA

Representative Photo 01 FINANCIAL ANALYSIS

4 BOJANGLES’ | RINGGOLD, GA EXECUTIVE SUMMARY

5861 HIGHWAY BOJANGLES’ RINGGOLD, GEORGIA 30736 PRICE CAP RATE $3,050,000 5.50%

Corporate Guarantee NET OPERATING INCOME $168,000 GUARANTOR Bojangles’ (NYSE:BOJA)

LEASE TYPE Absolute NNN INCREASES 1.25% Annual Increases

LEASE COMMENCEMENT Approximately 12/15/2019 OPTIONS (3) 5-Year Options

LEASE EXPIRATION DATE Approximately 12/14/2034 BUILDING SIZE 2,278 SF

YEAR BUILT 2019 LOT SIZE 1.096 Acres

Property is a brand-new prototype from Bojangle’s and will be one of the first stores of this design to open.

5 BOJANGLES’ | RINGGOLD, GA RENT ROLL

TENANT INFO LEASE TERMS CURRENT RENT RENT INCREASES LEASE

NAME SIZE COMMENCEMENT EXPIRATION ANNUALIZED RENT INCREASES OPTIONS TYPE

APPROXIMATELY APPROXIMATELY (3) 5-YEAR BOJANGLES’ 2,278 SF $168,000 1.25% ANNUALLY ABSOLUTE NNN 12/15/2019 12/14/2034 OPTIONS

NOTE: Tenant has 30 Day Right of First Refusal

6 BOJANGLES’ | RINGGOLD, GA

Representative Photo 02 PROPERTY DETAIL

7 BOJANGLES’ | RINGGOLD, GA PROPERTY SUMMARY

PROPERTY OVERVIEW 90,100 VPD

ALABAMA HIGHWAY 151 The subject property is currently under construction and slated to be completed by mid-December of 2019. Once completed, the improvements will be approximately 2,278 square feet in size sitting on an oversized lot of approximately 1.1 acres. This location is a new Bojangles’ prototype and will be one of the first stores to open with KRYSTAL this custom design. The property will share access with to the south which finished development in mid-2018. The asset comes with a newly-signed, 15-year, absolute NNN lease, and is guaranteed by Bojangles’ Restaurants, Inc., their corporate entity. Bojangles’ operates more than 760 locations in 12 states and have posted 26 consecutive quarters of positive comparable restaurant sales. The property is located directly off of Highway 15 (with more than 22,700 VPD) which SUBJECT PROPERTY is currently under construction to be expanded to four lanes from two. Just north of the property is the I-75 on-ramp (with more than 90,000 VPD) that travels north and south between the Canada border and Southern . The subject property is surrounded by national retailers including Peterbilt, Krystal, Wells Fargo, McDonald’s, BURGER Walgreens, Advance Auto Parts, CVS, Exxon, Burger King, Food Lion and more. The KING property also benefits from its close proximity to three large national industrial plants 22,720 VPD including Shaw Industries, Container Service Corporation and Propex. PROPERTY HIGHLIGHTS

• New Construction and Building Design with Estimated Completion at Mid- December 2019 • 15 Year Absolute Net Lease - No Landlord Responsibilities Whatsoever • 1.25% Annual Rent Increases WENDY’S • Corporate Guarantee with More Than 760 Locations • Successful Operating History - Bojangles’ Was Founded in 1977, Operating for Over 40 Years • Surrounded by 30+ National Brands Including Krystal, Wells Fargo, McDonald’s, EXXON Walgreens, Advance Auto Parts, CVS, Exxon, Burger King, Food Lion, and More; Close Proximity to Factory Plants for Shaw Industries, Container Service PETERBILT Corporation, and Propex N • Positioned Directly Off of Highway 151 Feeding to I-75 Directly North With Traffic Counts Exceeding 90,100 VPD; I-75 Travels North and South from the Canadian ARBY’S Border to the Southern Tip of Florida CREDIT UNION • Only 20 Miles Southeast of Chattanooga, TN (Population 180K) and 30 Miles Southwest of Cleveland, TN (Population 44K) FAMILY DOLLAR *Subject parcel outline is not exact 8 BOJANGLES’ | RINGGOLD, GA

AERIAL VIEW Ringgold High School Ringgold Middle School RINGGOLD

NASHVILLE ST

Villa McDonald’s HOTEL

VPD: 90,100* Walgreens 40 EMPLOYEES ALABAMA HWY

Burger PLANT RP 270 EMPLOYEES King

SUBJECT PROPERTY PLANT 47 | 430 EMPLOYEES BOJANGLES’ 5861 ALABAMA HWY RINGGOLD, GA 30736 Georgia Northwestern Technical College VPD: 22,720* BJB Electric

105 EMPLOYEES

226 EMPLOYEES *Source: costar.com; dot.ga.gov 9 BOJANGLES’ | RINGGOLD, GA TENANT OVERVIEW

Bojangles’ Inc. is a Southeastern United States regional chain of restaurants, specializing in Cajun seasoning, fried chicken, and buttermilk biscuits. Bojangles’ Restaurants began as the dream of Jack Fulk and Richard Thomas, two veteran restaurant operators who predicted rising consumer demand for good food served in a quick-service environment. In 1977, their dream became a reality in the form of the first Bojangles’ restaurant in Charlotte, NC. $ 1.3B Bojangles’ currently has 759 locations; 319 are corporate operated while the remaining 440 are IN 2018 TOTAL REVENUE franchised. Bojangles’ operates in 12 states but has plans to expand into the entire country. For 2018 Bojangles reported U.S. system-wide sales of nearly $1.3 billion, up about 1.6% from fiscal 2017’s $1.28 billion. In 2018 Bojangles’ was named the 5th Biggest Chicken Chain in Nation’s Restaurant News’ 764 Top 200 Restaurants. Also in 2018 QSR ranked Bojangles’ 29th in The QSR 50, an annual ranking of the nation’s top limited-service brands. Bojangles’ currently hopes to expand into LOCATIONS NATIONWIDE the north with some momentum brought on through their third-party delivery roll-out, new BoRewards loyalty and payment app, and their various value deals on their famous menu. In early 2019 Bojangles’ was acquired by Durational Capital Management LP and The Jordan Company, L.P. and became a privately held company. It will continue to be operated as an independent brand based in Charlotte, North Carolina. The Jordan 9,900+ Company, founded in 1982, is a middle-market private equity firm that has managed US EMPLOYEES funds with original capital commitments in excess of $11 billion since 1987. Durational Capital Management LP, founded in 2017, is an investment firm that said it invests in high-quality consumer companies. Today, Bojangles’ remains an iconic brand with an authentic Southern heritage and a deeply loyal following PENNSYLVANIA (1)

MARYLAND (6) VIRGINIA (68) WEST VIRGINIA (2) (11) (69) NORTH CAROLINA (316) (134) GEORGIA (109) ALABAMA (31)

Sources: globenewswire.com, bojangles.com, qsrmagazine.com FLORIDA (10) 10 BOJANGLES’ | RINGGOLD, GA

Representative Photo 03 MARKET OVERVIEW

11 BOJANGLES’ | RINGGOLD, GA LOCATION OVERVIEW

CHATTANOOGA MSA MANUFACTURING & DISTRIBUTION BASE Ringgold, Georgia is a small town with a population of 4,378 that has the benefits of being near The Chattanooga metro is home to large manufacturing of a big city with Chattanooga, TN less than 18 miles away. Steeped in tradition and scenic and distribution companies including Volkswagen and beauty, the Chattanooga metropolitan area has a lot to offer. The market consists of six counties Amazon. in Tennessee and Georgia: Hamilton, Marion, Sequatchie, Catoosa, Dade and Walker. The region’s growing economy is helping to draw new residents. Roughly 553,000 people reside in the metro, including nearly 178,000 in Chattanooga, the most populous city. Over the next five years, an AFFORDABLE COST OF LIVING additional 24,000 citizens will call the metro home. A relatively affordable cost of living draws many residents, maintaining a homeownership rate of 67 The local economy is heavily based in manufacturing and service industries, with multiple percent, with increasing household formation. headquarters such as McKee Foods Corp., the maker of the Little Debbie brand of snack cakes, and Volkswagen’s North American manufacturing headquarters. Service-based industries such as banking and finance have gained significance in the metro, with various mergers and acquisitions CENTRAL LOCATION of local institutions. Today, larger banks include First Citizens Bank and the independent First The metro is a transit hub, served by rail and interstate Volunteer Bank, which is locally based. systems. It has quick access to , Knoxville, Nashville, Huntsville and Birmingham. In the late 20th and early 21st centuries, substantial private and governmental resources were invested in transforming the city’s image. Chattanooga has garnered numerous accolades for this transformation. The city has won three national awards for outstanding “livability”, and nine TOURIST ATTRACTIONS Gunther Blue Ribbon Awards for excellence in housing and consolidated planning. In December Chattanooga is home to a host of natural, scenic 2009, Chattanooga was ranked 8th out of America’s 100 largest metro areas for the best “Bang attractions from nearby Lookout Mountain, GA to the For Your Buck” city, according to Forbes magazine, which measured overall affordability, housing Ocoee River that allows rafting, camping, and hiking. rates, and more.

12 BOJANGLES’ | RINGGOLD, GA DEMOGRAPHICS Population In 2018, the population in a ten-mile radius of the subject property is 149,979. The population has changed by 21.25% since 2000. It is estimated that the population in the area will be 159,071 five years from now, which represents a change of 6.06% from the current year. The current population is 48.86% male 20 Miles and 51.14% female. The median age of the population in the area is 40.19, compare this to the US average which is 37.95. The population density in the area is 476.43 people per square mile. The population in a ten-mile radius 10 Miles of the property has increased by over 21% since 2000. 5 Miles 21 Households There are currently 59,617 households in a ten-mile radius of the subject property. The number of households has changed by 24.37% since 2000. It is estimated that the number of households in the area will be 64,114 five years from now, which represents a change of 7.54% from the current year. The average household size in the area is 2.45 persons. The number of households in a ten-mile radius of the property has 24 increased by over 24% since 2000. Income POPULATION 5 Miles 10 Miles 20 Miles 2023 Projection 119,221 159,071 220,097 In 2018, the median household income for a ten-mile radius around the 2018 Estimate 112,939 149,979 207,443 subject property is $49,099, compare this to the US average which is currently $58,754. The median household income for the area has changed by 32.79% 2010 Census 106,054 140,203 194,228 since 2000. It is estimated that the median household income in the area will 2000 Census 94,511 123,697 172,961 be $56,249 five years from now, which represents a change of 14.56% from Current Daytime Population 125,366 159,149 213,689 the current year. The current year per capita income in the area is $26,451, HOUSEHOLDS 5 Miles 10 Miles 20 Miles compare this to the US average, which is $32,356. The current year average 2023 Projection 49,115 64,114 91,054 household income in the area is $65,641, compare this to the US average 2018 Estimate 45,885 59,617 84,670 which is $84,609. 2010 Census 43,038 55,669 79,195 The median household income in a 2000 Census 37,627 47,937 68,163 ten-mile radius of the property has HOUSEHOLDS BY INCOME 5 Miles 10 Miles 20 Miles increased by nearly 33% since 2000. 2018 Estimate 33 $150,000 or More 5.73% 5.68% 6.08% $100,000 - $149,000 10.48% 10.66% 11.75% Employment $75,000 - $99,999 11.82% 12.10% 12.26% $50,000 - $74,999 20.39% 20.75% 20.57% In 2018, there are 61,721 employees in the ten-mile radius area, this is also $35,000 - $49,999 14.38% 14.33% 13.48% known as the daytime population. The 2000 Census revealed that 56.19% of employees are employed in white-collar occupations in this geography, and Under $35,000 37.20% 36.46% 35.85% 43.92% are employed in blue-collar occupations. In 2018, unemployment in Average Household Income $65,288 $65,641 $67,162 this area is 5.18%. In 2000, the average time travel to work was 18 minutes. Median Household Income $48,170 $49,099 $50,736 Source: ©2018 Experian 13 BOJANGLES’ | RINGGOLD, GA DEMOGRAPHICS

TRAVEL TIMES FROM RINGGOLD Chattanooga, TN 20 Mins Atlanta, GA 1.5 Hours Knoxville, TN 1.7 Hours Nashville, TN 2.1 Hours CATOOSA COUNTY Birmingham, AL 2.5 Hours Ringgold Charlotte, NC 4.9 Hours Savannah, GA 5.0 Hours

POPULATION Catoosa County Georgia State 2023 Projection 71,002 11,198,575 2018 Estimate 66,549 10,441,976 2010 Census 63,942 9,687,665 2000 Census 53,394 8,186,388 POPULATION PROFILE Catoosa County Georgia State Population By Age Under 20 25.5% 27.0% 20 to 34 Years 16.5% 20.8% 35 to 44 Years 13.2% 13.2% 45 to 64 Years 27.0% 25.7% Age 65+ 16.9% 13.2% Median Age 40.5 36.6 HOUSEHOLDS BY INCOME Catoosa County Georgia State 2018 Estimate $150,000 or More 5.0% 9.8% $100,000 - $149,000 11.6% 13.0% $75,000 - $99,999 13.4% 12.4% $50,000 - $74,999 20.7% 18.4% $35,000 - $49,999 12.6% 13.5% Under $35,000 36.6% 32.9% Average Household Income $64,384 $78,123 Median Household Income $50,841 $54,296 Source: ©2018 Experian 14 BOJANGLES' RINGGOLD, GA | CHATTANOOGA MSA Representative Photo

OFFERING MEMORANDUM

JOSEPH BLATNER Senior Vice President 503.200.2029 [email protected]