REPRESENTATIVE PHOTO

BRAND NEW 2021 CONSTRUCTION

OFFERING MEMORANDUM

Rally's La Mesa, CA | Metro

www.preservewestcapital.com TABLE OF CONTENTS

PROPERTY HIGHLIGHTS 1 AERIAL 5

PROPERTY OVERVIEW 2 ABOUT THE AREA 6

ABOUT THE TENANT 3 DEMOGRAPHICS 8

SITE PLAN 4

Disclaimer MGM Capital Corp dba Preserve West Capital (“Broker”) has been retained on an exclusive basis to market the property Putnam Daily described herein (“Property”). Broker has been authorized by the Seller of the Property (“Seller”) to prepare and distribute the enclosed information (“Material”) for the purpose of soliciting offers to purchase from interested parties. More detailed Partner financial, title and tenant lease information may be made available upon request following the mutual execution of a letter of 415.445.5107 intent or contract to purchase between the Seller and a prospective purchaser. You are invited to review this opportunity and [email protected] make an offer to purchase based upon your analysis. If your offer results in the Seller choosing to open negotiations with you, you will be asked to provide financial references. The eventual purchaser will be chosen based upon an assessment of price, CA RE License #01750064 terms, ability to close the transaction and such other matters as the Seller deems appropriate.

The Material is intended solely for the purpose of soliciting expressions of interest from qualified investors for the acquisition Michael Maffia of the Property. The Material is not to be copied and/or used for any other purpose or made available to any other person Managing Partner without the express written consent of Broker or Seller. The Material does not purport to be all-inclusive or to contain all of the information that a prospective buyer may require. The information contained in the Material has been obtained from the Seller 415.373.4060 and other sources and has not been verified by the Seller or its affiliates. The pro forma is delivered only as an accommodation [email protected] and neither the Seller, Broker, nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries, CA RE License #01340853 members, managers, partners, shareholders, directors, or officers, makes any representation or warranty regarding such pro forma. Purchaser must make its own investigation of the Property and any existing or available financing, and must independently confirm the accuracy of the projections contained in the pro forma.

Seller reserves the right, for any reason, to withdraw the Property from the market. Seller has no obligation, express or implied, to accept any offer. Further, Seller has no obligation to sell the Property unless and until the Seller executes and delivers a signed agreement of purchase and sale on terms acceptable to the Seller, in its sole discretion. By submitting an offer, a purchaser will be deemed to have acknowledged the foregoing and agreed to release Seller and Broker from any liability with respect thereto.

Property walk-throughs are to be conducted by appointment only. Contact Broker for additional information.

www.preservewestcapital.com PROPERTY HIGHLIGHTS 35081 Enrolled

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• 20-Year NNN Lease to Established Rally’s Franchisee • Robust Demographics in Surrounding Area - 10% Scheduled Rental Escalations Every 5 Years - Population of 491,331 within 5 Mile Radius • Brand New 2021 Construction - Average Household Income of $90,833 within 3 Miles of Site • Highly Functional Footprint Featuring Drive-Thru Component • Prominent Retail Location in Established San Diego Suburb • Drive-Thru/Drive-Up Business Model Well-Adapted to Pandemic - Nearby Anchor Tenants Include Target, Walmart, Costco, CVS, Walgreens, ALDI, & More - Checkers & Rally’s Same-Store Sales Increased 13.9% and 11.3% in Q3 and Q4 of 2020, Despite Pandemic Restrictions • San Diego MSA Location - Oak Hill Partners Has Announced Plans to Invest $20M In - MSA GDP of $253.1 Billion Company’s Growth Plans - Population of 3.3 Million • Excellent Access & Visibility Along El Cajon Boulevard - 2nd Largest MSA by Population in California - Adjacent to I-8/Kumeyaay Highway Arterial – 208,000 AADT • 12 Miles from Downtown San Diego • Less than 3 Miles from San Diego State University – 35,081 Students PRESERVE WEST CAPITAL | 1 PROPERTY OVERVIEW

Location PRICE The property is located at 7393 El Cajon Boulevard in La Mesa, California.

Lot Size $3,111,000 Approximately 0.297 acres or 12,972 square feet. 4.50% CAP Rate

Improvements A 780 square foot retail building for Rally’s with a drive-thru component.

Lease Annual Rent

Leased to WNK Foods for 20 years and guaranteed by Wahid Karas for 20 years from an Years Annual Rent Return estimated rent commencement date in May 2021 through April 2041 at an initial annual rent of $140,000. Rent is to increase by 10% in years 6, 11, and 16. The lease is net with tenant responsible for all taxes, insurance, and maintenance; however, tenant shall not be Years 1-5 $140,000 4.50% responsible for increases in taxes resulting from sale of the property more than once in any given five year period. Years 6-10 $154,000 4.95%

Years 11-15 $169,400 5.45% Financing Years 16-20 $186,340 5.99% This property will be delivered free and clear of permanent financing.

PRESERVE WEST CAPITAL | 2 ABOUT THE TENANT

Rally’s serves hamburgers, hot dogs, French fries, ice cream, and other foods at approximately 890 Checkers or Rally’s locations nationwide. Both Checkers and Rally’s offer the same menu items, branding, and double drive-thru layouts; since Checkers acquired Rally’s in 1999, locations have been branded as Rally’s in the Midwest and in

SITE ELEVATIONS California, while locations in the South and Northeast are typically branded as Checkers. The company is one of the largest chains of double drive-thru restaurants in the United States. The company operates 122 corporate Checkers locations and 134 corporate Rally’s locations; the remaining 634 locations are franchised. In the third and fourth quarters of 2020, same-store sales for Rally’s and Checkers increased by 13.9% and 11.3% respectively, despite pandemic-related restrictions. Based on this strong performance despite pandemic challenges, Oak Hill Partners, the private equity firm which owns the chain, has announced plans to invest $20 million into the brands’ growth plans. Over the course of 2020, the company approved 40 new franchisees and had more than 72 new locations in the development pipeline. WNK Foods, the lease entity, is a franchisee of Rally’s; the La Mesa location will be it's fourth Rally's location. Wahid Karas, the guarantor, operates 10 quick service restaurant locations in Southern California in addition to the Rally's locations.

PRESERVE WEST CAPITAL | 3 SITE PLAN

PRESERVE WEST CAPITAL | 4 AERIAL NORTHEAST VIEW LA MESA CROSSROADS

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rio rand New ownhomes ABOUT THE AREA General Overview La Mesa is a suburb of San Diego located approximately 9 miles from downtown San Diego. The city is part of the San Diego- Carlsbad Metropolitan Statistical Area and the San Diego- international metropolitan conurbation, the largest shared between the U.S. and by population and the fifth-largest international metropolitan area in the world. The region benefits from vibrant trade between the region, and the San Diego area has grown to become a vibrant international economic hub. The MSA has a total gross domestic product of $253.1 billion. In addition to its close proximity to Mexico, the region is also home to the Port of San Diego, one of the highest volume ports in the U.S. with more than 3 million tons of cargo annually and total export value of $18.1 million for the region. The region also benefits from the second- largest quantity of cruise ship traffic in California, generating $2 million in revenue annually. The region is home to numerous colleges and universities, including University of California San Diego, San Diego State University, and the University of San Diego. Other major components of the San Diego regional economy include military/defense, technology, biomedical research, life sciences, aerospace, cybersecurity, manufacturing, shipbuilding, unmanned systems, and more. The region is home to the largest concentration of military assets in the world and the largest military workforce in the country, representing one out of every five jobs in the region and contributing an estimated $25.2 billion to the regional economy. The area also benefits from a SITE robust tourism industry, with more than 35 million visitors to the region annually. The city is home to numerous major research institutes and scientific startups, with scientific research and development contributing more than $14.4 billion to the local economy. High-tech startups are also a prominent component of the local economy, with more than $1.3 billion in annual venture capital investments in the region. Major companies operating in the region include Boeing, Lockheed Martin, Honeywell, Northrop Grumman, Planck Aerosystems, Broadcom, Samsung, Peregrine Semiconductor, General Atomics, ESET North America, Sentek Global, Booz Allen Hamilton, FICO, Raytheon, General Dynamics, Eli Lilly, Genentech, Thermo Fisher Scientific, Johnson & Johnson, Pfizer, GlaxoSmithCline, Hunter Industries, WD-40, Qualcomm, Intuit, and more.

PRESERVE WEST CAPITAL | 6 ABOUT THE AREA

Site Information The subject property is prominently situated with excellent access and visibility along El Cajon Boulevard (21,800 AADT) adjacent to I-8/Kumeyaay Highway (208,000 AADT). The site benefits from robust demographics with a population of 491,331 SITE within a 5 mile radius. Average household income within 3 miles of the site is $90,833, and average home value is $586,536.

The property benefits from a prominent retail location in close proximity to shopping centers and major retail tenants. Nearby retail centers include La Mesa Springs Shopping Center, anchored by Vons; Grossmont Center, featuring Walmart, Target, CVS, Dollar Tree, and Macy’s; Grossmont Trolley Center, featuring Petco, Office Depot, and BevMo!; Navajo Shopping Center anchored by Albertsons and Rite Aid; San Carlos Village, featuring ALDI and Walgreens; and University Square, anchored by Food 4 Less and Marshalls. Other major retail tenants in the surrounding area include Costco, CVS, Smart & Final Extra, and more. In addition, the property is located less than 3 miles from San Diego State University, with 35,081 students enrolled.

PRESERVE WEST CAPITAL | 7 DEMOGRAPHICS

7393 El Cajon Blvd | La Mesa, CA 91942

Major Employers # of in San Diego County Employees

Federal Government (Including 48,500 Department of Defense) TOTAL POPULATION AVG. HOME VALUE AVG. HOUSEHOLD INCOME State of California 45,200 491,331 $586,536 $90,833 University of California 35,802 (Including UC Health) County of San Diego 18,025

Population Summary 1 Mile 1 3 Miles 5 Miles Scripps Health 15,334 2010 Total Population 25,765 176,339 471,788 San Diego Unified School 13,559 2020 Total Population 26,834 185,040 491,331 District 13,000 2025 Total Population 27,329 188,756 501,066 Qualcomm, Inc. 2020-2025 Annual Rate 0.37% 0.40% 0.39% City of San Diego 11,820 Average Household Income Kaiser Permanente 9,630 2020 $80,215 $90,833 $89,119 2025 $87,463 $99,119 $98,425 El Super 100-249 Average Home Value

2020 $546,951 $586,536 $560,861 2025 $614,491 $649,136 $631,010

PRESERVE WEST CAPITAL | 8 REPRESENTATIVE PHOTO

Putnam Daily Michael Maffia Partner Managing Partner 415.445.5107 415.373.4060 [email protected] [email protected] CA RE License #01750064 CA RE License #01340853