Investment Property Offering

$2,459,000 BOJANGLES' 1017 Dallas-Cherryville Highway, Dallas, NC 28034

Presented By: Kase Abusharkh Offering Highlights 252 Abigail Circle Danville, CA 94506 (925)348-1844 Long-Term Absolute Net Lease [email protected] Corporate Guarantee Class A 2008 Construction Strong Retail Location

07/01/2008 Table of Contents

1 Financial Analysis Executive Summary Investment Information Rent Roll Summary

2 Additional Information

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. 1 . Financial Analysis Executive Summary BOJANGLES' 1017 Dallas-Cherryville Highway Dallas, NC 28034 List Price $2,459,000 Price Per GLA $702.57 Price per S.F. $702.57 CAP 7.00 %

GLA 3,500 Building S.F. 3,500 Percent Occupied 100.00 % Land Acres 1.60

Bojangles' Famous Chicken n' Biscuits Cross Street Gaston Square Lane Tax Parcel Number 171286 Market Charlotte-Gastonia-Rock Hill Sub Market Gaston County Year Built 2008 Building Class A Location Class A No.Tenants 1

Property Descriptions Construction High quality class A construction slated for completion in mid-2008. Parking Abundant parking on the 1.60 acre site. Major Tenants Bojangles' Famous Chicken n' Biscuits is a regional chain of fast food restaurants based in Charlotte, North Carolina, specializing in spicy, "Cajun" fried chicken and buttermilk biscuits. The restaurants, named for the song written by Jerry Jeff Walker, are also known for their distinctive side dishes (called "fixins") including dirty rice, Cajun Pintos, thick-cut and Cajun seasoned french fries. Bojangles' also offers sausage gravy instead of the chicken gravy offered by most of its competitors. Sandwiches have also been added to the menu. The chain's chicken sandwiches come "Cajun" as well as Southern Fried, and breakfast biscuit sandwiches are served all day. Area This commercial trade area serves North, Northeast Gaston County. Limited number of high-quality national restaurants such as McDonald's, Arby's, KFC, Burger King. Within a few hundred yards of new Walgreen's. Bojangles' is located at the entrance to Gaston Community College. It is extremely visible on the morning drive and is the first restaurant encountered by traffic on the morning commute. 1.6 acre site provides greater, future flexibility. Property The property is occupied by Bojangles' Famous Chicken 'n Biscuits on a long-term corporate guaranteed absolute net lease. There are increases and options and no landlord obligations which offer a passive investment.

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. Investment Information

BOJANGLES' 1017 Dallas-Cherryville Highway Dallas, NC 28034 Listing Price $2,459,000 GLA 3,500 2008 CAP 7.00 % Building S.F. 3,500 2013 CAP 7.53 % Percent Occupied 100.00 % Price Per S.F. $702.57 Land Acres 1.60

Estimated Annualized Operating Data 2008 2013 2018 Net Operating Income $172,140 $185,050 $198,929

Highlights

Long-Term Absolute Net Lease Corporate Guarantee Class A 2008 Construction Strong Retail Location

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. www.svn.com Rent Roll Summary

Tenant Name Start Date End Date Occupied Annual Occupied % of Escalations / Options / Comments S.F. Rent S.F. Rent Total Bojangles' 7/1/2008 6/30/2023 3,500 $49.19 $172,175 100.0 % Rent increases: Year 6 $185,050 Year 11 $198,929

Total 3,500 $172,175 100.0 %

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. 2 . Additional Information Tenant Overview

Bojangles' Famous Chicken n' Biscuits is a regional chain of fast food restaurants based in Charlotte, North Carolina, specializing in spicy, "Cajun" fried chicken and buttermilk biscuits. The restaurants, named for the song written by Jerry Jeff Walker, are also known for their distinctive side dishes (called "fixins") including dirty rice, Cajun Pintos, thick-cut and Cajun seasoned french fries. Bojangles' also offers sausage gravy instead of the chicken gravy offered by most of its competitors. Sandwiches have also been added to the menu. The chain's chicken sandwiches come "Cajun" as well as Southern Fried, and breakfast biscuit sandwiches are served all day.

Founded in Charlotte, North Carolina, in 1977 by Jack Fulk and Richard Thomas, Bojangles' grew rapidly to over 200 locations by 1984, only to see its growth rate slow into the 1990s. New management (former Wendy's executive Joe Drury) joined the company as CEO in 2001 and an invigorated marketing campaign have seen the company grow substantially in recent years to over 400 locations in 11 states, mostly in the American South (North Carolina, South Carolina, Georgia, Maryland, Alabama, Florida, Tennessee, Virginia) and the Mid-Atlantic States of Pennsylvania, New Jersey and New York. There are also international Bojangles' locations in Mexico and Honduras.

Jack Fulk sold the Bojangles' concept to the now defunct New York company, The Horn & Hardart Company, in 1981. Horn and Hardart had pioneered "fast food" in another era with the use of coin operated automats, the last of which was located on 42nd Street in New York City and was closed in the late 1980s. Horn and Hardart was a publicly held company and raised large amounts of capital for expansion of the Bojangles' chain using, among other sources, junk bonds pioneered by Michael Milken. Milken became a franchisee of Bojangles' in Texas as well. Although Horn and Hardart operated many high-volume, franchised Arby's and Burger King restaurants in New York City and in South Florida, and created several independent concepts, and acquired the west coast buffet chain, International Kings Table, the company's management became largely discredited after ongoing financial losses (During this era Forbes magazine published an article featuring Horn and Hardart chairman, Barry Florescue, entitled, "They Should Have Paid Him To Stay Home.")

During the time of Horn and Hardart's ownership the chain grew rapidly and expanded to 335 restaurants including 100 restaurants in Florida. Part of this growth was fueled by acquisitions including the Florida based Biskits chain. The conversion of the Biskits restaurants was unsuccessful and saddled the company with a large amount of new debt. Within the Bojangles' system there was extensive litigation with franchisees and others and the franchisee association threatened further large-scale litigation. Between 1985 and 1990 the chain rapidly contracted to 154 restaurants; all 100 restaurants in Florida were sold, many of them to Miami Subs. Several events brought about a modicum of stability in the late 1980s even while many of the company's largest markets were closed. When Hurricane Hugo struck the Carolinas, the company was able to open many of its restaurants while electricity remained off for more than a week in many areas. The massive amount of business sparked a turn-around in the company's sales that continued for many years. The company was stabilized under the leadership of CEO John Bifone, and a settlement was reached with the franchise association which had threatened the company.

In 1990, Horn and Hardart sold most of its interest to Sienna Partners and Interwest Partners, which were managed by a group of young California venture capitalists based in Silicon Valley. The company was then headed by former KFC executive, Dick Campbell. After modest investment in facilities, training and operations, the company began a slow and steady improvement that lasted throughout most of the 1990s. In 1994 the company attempted a public offering which collapsed before completion based upon a "softening" of the performance and over-expansion of company units and franchisee acquisitions. Dick Campbell was replaced by CEO Jim Peterson. Again the company stabilized and improved its performance, eventually selling to a group of investors headed by Joe Drury and financed by FMAC in 1998.

Bojangles' was purchased one more time in 2007 by Falfurrias Capital Partners, a private equity firm. The investment group includes Hugh L. McColl Jr., founder and chairman of Falfurrias Capital Partners and former chairman and chief executive of Bank of America, and Jerry Richardson, founder and president of the NFL Carolina Panthers.

For more information on Bojangles’ Famous Biscuits ‘n Chicken, please visit www.bogangles.com

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. www.svn.com Aerial Photo

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. www.svn.com Location Map

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. Demographics Report 1017 Dallas-Cherryville Highway Dallas, NC 28034 1.00 Mile 3.00 Mile 5.00 Mile Ring Ring Ring

POPULATION 1990 Population 2,094 16,006 54,827 2000 Population 2,175 15,875 54,792 % Population Change 1990-2000 3.87 % -0.82 % -0.06 %

2007 Total Population 2,359 16,464 56,412 2012 Total Population 2,399 16,770 57,181 % Population Change 2000-2007 8.46 % 3.71 % 2.96 % % Population Change 2007-2012 1.70 % 1.86 % 1.36 % 2007 Total Households 935 6,439 22,490 2012 Total Households 955 6,577 22,852 % Households Change 2000-2007 10.13 % 5.68 % 4.94 % % Households Change 2007-2012 2.14 % 2.14 % 1.61 % 2007 White Population 2,036 11,566 39,554 2007 Black Population 259 4,366 13,696 2007 American Indian/Alaska Native 1 28 103 2007 Asian/Hawaiian/Pacific Islander 16 59 372 2007 Other Population (Incl 2+ Races) 47 446 2,687 2007 Hispanic Population 47 547 3,405 2007 Non-Hispanic Population 2,313 15,917 53,006 2007 Per Capita Income $19,359 $19,341 $18,768 2007 Median Household Income $31,841 $33,443 $33,746 2007 Average Household Income $48,842 $49,453 $47,077 2007 Household Income < $10,000 150 825 2,650 2007 Household Income $10,000-$14,999 98 556 1,998 2007 Household Income $15,000-$19,999 78 497 1,661 2007 Household Income $20,000-$24,999 65 571 1,937 2007 Household Income $25,000-$29,999 62 459 1,719 2007 Household Income $30,000-$34,999 38 453 1,708 2007 Household Income $35,000-$39,999 40 455 1,736 2007 Household Income $40,000-$44,999 83 517 1,701 2007 Household Income $45,000-$49,999 38 320 1,488 2007 Household Income $50,000-$59,999 95 527 2,069 2007 Household Income $60,000-$74,999 73 529 1,723 2007 Household Income $75,000-$99,999 56 442 1,265 2007 Household Income $100,000-$124,999 24 147 409 2007 Household Income $125,000-$149,999 7 28 149

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. 2007 Household Income $150,000-$199,999 25 84 161 2007 Household Income $200,000-$249,999 0 4 14 2007 Household Income $250,000-$499,999 2 25 100 2007 Household Income $500,000+ 0 1 2 2007 Average Household Size 2.31 2.48 2.45 2007 Total Owner Occupied Housing Units 586 4,005 13,287 2007 Total Renter Occupied Housing Units 340 2,420 9,183 2007 Total Daytime Population 2,492 16,297 60,387 2007 Total Daytime Work Population 1,271 7,171 29,628 2007 Total Establishments 151 673 3,004

HOUSEHOLDS 1990 Households 853 5,850 20,798 2000 Households 849 6,093 21,431 % Households Change 1990-2000 -0.47 % 4.15 % 3.04 %

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.