OFFERING MEMORANDUM Representative Photo

Burger King ™ 1330 Poplar Avenue | Memphis, TN 38104 Burger King, Memphis, TN | 1 ™

Representative Photo ™ 2 | Offering Memorandum contents 04 EXECUTIVE SUMMARY

06 financial OVERVIEW

08 tenant overview

12 area OVERVIEW exclusively listed by

Gary chou FVP & Senior Director

[email protected] DIR (310) 919-5827 MOB (714) 928-8016 LIC # 01911222 (CA)

Kyle Matthews BROKER OF RECORD LIC # 263667

Representative Photo Burger King, Memphis, TN | 3 executive summary

LONG TERM STABILIZED INVESTMENT

• Long Term Lease – There are 18.5 years remaining on the original 20-year lease with two (2), 5-year options for the tenant to extend

• Strong Hedge Against Inflation – There are 10% increases in rent every 5 years allowing properties to keep up with rising market rents

• Attractive Tax Benefits – Ownership includes land and improvements, allowing owners to depreciate the improvements over a 39-year depreciation schedule

• Absolute NNN Lease – Landlord has zero landlord responsibilities, the tenant takes care of insurance, real estate taxes, and maintenance

• Exceptional Sales Growth – This site has seen explosive sales growth over the past three years

EXCELLENT LOCATION IN STRONG RETAIL AREA

• Tax Free State – is one of 8 states out of 50 that has no state income taxes – great investment for those also living in tax free states or those who do not want to file taxes in other states

• Dense Retail Corridor – Other national tenants in the immediate area include Walgreens, BP, Advance Auto Parts, McDonald’s, Kroger, and Regions Bank, amongst others

• Healthy Traffic Counts – Poplar Ave supports over 24,000 VPD

SEASONED OPERATOR OF AN EXCELLENT BRAND

• Strong Guarantee – Over 40 units with considerable history of successful operations back the tenant and guaranty on the lease.

• Seasoned Operator – Headed by Ray Meeks, recipient of multiple Franchisee of the Year awards and a franchisee since 1984, Cambridge Franchise Holdings has 100+ units under management and has a strong strategy for continued growth

• Iconic Brand – Burger King has over 15,000 units worldwide and has been one of the most successful burger chains in the world since 1954

4 | Offering Memorandum Representative Photo

Burger King, Memphis, TN | 5 Representative Photo

financial overview6 | Offering Memorandum Burger King 1330 Poplar Avenue Memphis, TN 38104 List Price ����������������������������������������������������������������������������������������������������������������������������������� $1,439.000 CAP Rate - Current �������������������������������������������������������������������������������������������������������������������������� 5.80% Gross Leasable Area ���������������������������������������������������������������������������������������������������������������± 3,776 SF Lot Size ����������������������������������������������������������������������������������������������������������������������������������± 0.64 Acres Year Built/Renovated ���������������������������������������������������������������������������������������������������������������1998/2016

Annualized Operating Data Monthly Rent Annual Rent Rent/SF Cap Rate Current $6,952.92 $83,435 $22.10 5.80% Second Rent Period $7,648.20 $91,779 $24.31 6.38% Third Rent Period $8,413.03 $100,956 $26.74 7.02% Fourth Rent Period $9,254.33 $111,052 $29.41 7.72% Option 1 $10,179.77 $122,157 $32.35 8.49% Option 2 $11,197.74 $134,373 $35.59 9.34%

Tenant Summary

Tenant Trade Name Burger King Type of Ownership Fee Simple Lease Guarantor Franchisee (MIC/Tennessee Quality LLC) Lease Type NNN Roof and Structure Tenant Responsible Original Lease Term 20 Years Lease Commencement Date 1/6/2016 Rent Commencement Date 1/6/2016 Lease Expiration Date 1/5/2036 Term Remaining on Lease ± 18.5 Years Increases 10% Every 5 Years Options Two, 5-Year Options

RepresentativeBurger PhotoKing, Memphis, TN | 7 Representative Photo

tenant overview8 | Offering Memorandum Cambridge Franchise Holdings is led by Ray Meeks (CEO), a 30-year Burger King Cambridge Franchise Holdings / Parent Company Franchisee and seasoned restaurant operator. He has been the recipient of several Mirabile Investment Corp Burger King Awards such as the Franchisee of the Year, the Burger King Development, Excellence, and Leadership Award, the Burger King National Award of Excellence, Number of Locations 110 Units and the Burger King National Brand Leadership Award. Ray has also served as Vice Chairman of the National Franchise Association, which represents Burger King Franchisees across the country and Canada. The company currently operates 100+ Ownership Private locations all over the Southeastern states. Their outstanding track record has allowed Cambridge Franchise Holdings to be recognized as one of the fastest growing and Headquartered Memphis, TN most profitable Burger King franchisees in the Burger King network. They have achieved this with a strong management team, a culture of partnership among all of its employees and healthy financial support from Garnett Station. The company plans to Website http://www.garnettstation.com/burger-king/ continue growth and expansion through the Southeast through development of new restaurants and acquisitions.

Year Founded 2014 Mirabile Investment Corp (MIC) is owned and operated by Cambridge Franchise Holdings and has 40+ locations with long operating history and above average sales numbers. A large majority of the MIC stores have been renovated in the past 4-5 years.

For further information or questions, please contact Gary Chou.

Burger King, Memphis, TN | 9 parcel map the offering

Property Name Burger King 1330 Poplar Avenue Property Address Memphis, TN 38104 Assessor’s Parcel Number 02-0025-0-0010, 02-0025-0-0011 Site Description Number of Stories One Year Built/Renovated 1998/2016 Oceanside Blvd ± 31,792 Gross Leasable Area (GLA) ± 3,776 SF Lot Size ± 0.64 Acres (27,747 SF) Type of Ownership Fee Simple Parking ± 50 Surface Spaces Landscaping Professional

Topography Generally Level 40,116 ± Blvd College

10 | Offering Memorandum surrounding tenants

Burger King, Memphis, TN | 11 area overview

Memphis, TN Memphis is a city in the southwestern corner of Tennessee and the county seat of Shelby County. With a population of about 700,000 Memphis is the largest city in Tennessee, the largest city on the River, and the third largest city in the greater Southeastern United States. The city’s central geographic location has been strategic to its business development. The economic base is diverse and its status as a good business base is on the rise—the city is headquarters for retailer AutoZone and FedEx Corporation, and International Paper is relocating its headquarters from Connecticut. It is also known as a good base for smaller and especially minority owned businesses. Located on the and intersected by five major freight railroads and two Interstate Highways, I-40 and I-55, Memphis is ideally located for commerce in the transportation and shipping industry. Its access by water was key to its initial development, with steamboats plying the Mississippi river. Railroad construction strengthened its connection to other markets to the east and west. The Memphis metro area is experiencing tremendous growth both in number of startups and population largely due to the lower cost of living in the city. The city was recently added to the news Forbes list that ranks top cities for business and growth. Memphis is a pilgrimage for those wanting to visit the birthplace of the , soul and of rock ‘n’ roll. On , W.C. Handy put down on paper the first written blues music. , , and all recorded at the historic , which is now a museum. , the second most-visited home in America, welcomes visitors from around the world who yearn for a peek into the life of “the King.” A general resurgence in the popularity of blues has brought new life to Memphis as a tourist attraction. The historic Beale Street neighborhood provides music entertainment opportunities for residents and tourists.

12 | Offering Memorandum Memphis Top Employers

Number of Rank Employer Employees 1 Federal Express Corporation 30,000 2 16,000 3 United States Government 14,800 4 Methodist Healthcare 10,000 5 Baptist Memorial Healthcare Corp. 8,000 6 Shelby County Government 7,183 7 Memphis City Government 6,680 8 Wal-Mart Stores, Inc. 6,500 9 Naval Support Activity Mid-South 5,247 10 Tennessee State Government 5,247

Memphis demographics

POPULATION 1 Mile 3 Mile 5 Mile 2022 Projection 16,449 102,282 201,197

2017 Estimate 16,315 101,291 200,526 2010 Census 16,245 101,596 203,794 2000 Census 19,919 115,311 231,111 Growth 2017 - 2022 0.82% 0.98% 0.34% HOUSEHOLDS 1 Mile 3 Mile 5 Mile 2022 Projection 8,569 45,908 85,613 2017 Estimate 8,440 44,965 84,437 2010 Census 8,305 44,140 84,036 2000 Census 9,659 47,844 92,753 Growth 2017 - 2022 1.53% 2.10% 1.39% Growth 2010 - 2018 1.63% 1.87% 0.48% INCOME 1 Mile 3 Mile 5 Mile 2017 Est. Average $52,733 $52,616 $47,438 Household Income Burger King, Memphis, TN | 13 Growing City

Memphis has recently been one of the best places for buisnesses to florish. Forbes noticed that the city has been growing rapidly and is the new hot spot for established and rising corporations. Memphis was recognized as the 42nd largest metro nationwide. It is estimated that more than 55 people move into the area per week. This is one of the highest growth rates within the state. With the quick spike in population, crime has stayed considerably low.

14 | Offering Memorandum Points of Interest

GRACELAND

3764 Blvd is the home to Graceland, the mansion of the late Elvis Presley. His home is open to the public and brings in 650,000 visitors a year and is the second most visited house in the United States. fans can pay their respects to the King while exploring his lavish home.

The house sits on 13.8 acres and is the burial to Presley and his family. Inside there are 23 rooms. Each room has a different theme which allows fans to see Presley’s unique decorating taste. NATIONAL CIVIL RIGHTS MUSEUM

The National Civil Rights Museum holds a significant chapter of our country’s history. The museum holds several powerful exhibits that shows the growth of Civil Rights from the 17th century to present. It was created around the Lorraine Motel, where Martin Luther King, Jr was assassinated.

The museum has recently grown within other buildings around the Lorraine Motel. The main mission is to share the civil rights movement and make sure that equality keeps growing today. SUN STUDIO

For true music fans, Sun Studio is a must-see. The recording studio was originally opened by in 1950. Throughout the 50’s, Phillips would go on to create careers for Johnny Cash, Elvis Presley, Jerry Lee Lewis, and so many others. Sun Studios contributed immensely to the “Birthplace of Rock and Roll.”

You can take a tour and see where it all started or join in on the action! There are still active recording sessions and singing competitions.

Burger King, Memphis, TN | 15 CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offering Memorandum contains select information pertaining to the business and affairs of Burger King located at 1330 Poplar Avenue, Memphis, TN 38104 (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1. The Offering Memorandum and its contents are confidential;

2. You will hold it and treat it in the strictest of confidence; and

3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. BROKER OF RECORD

exclusively listed by

Gary chou FVP & Senior Director

[email protected] DIR (310) 919-5827 MOB (714) 928-8016 LIC # 01911222 (CA)

Kyle Matthews BROKER OF RECORD LIC # 263667

Burger King ™ 1330 Poplar Avenue | Memphis, TN 38104 Burger King, Memphis, TN | 17