Cracker Barrel's “Ghost Kitchen”

Cracker Barrel’s “Ghost Kitchen” 9350 N Michigan Rd, Indianapolis, IN 46268 NON-ENDORSEMENT AND DISCLAIMER NOTICE

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OFFICES THROUGH THE U.S. AND CANADA WWW.MARCUSMILLICHAP.COM 04 FINANCIAL OVERVIEW Investment Summary Investment Highlights Offering Summary Ghost Kitchen Value Chain TABLE OF Rent Roll 10 CONTENTS PROPERTY OVERVIEW Tenant Summary Aerial Photo Local Map Regional Map 15 MARKET OVERVIEW Indianapolis Market Overview Demographic Summary

INVESTMENT SUMMARY INVESTMENT OVERVIEW Marcus & Millichap is pleased to exclusively present for your acquisition review Cracker Barrel’s Ghost Kitchen located in Indianapolis, Indiana.

The 10,000 square foot building was built-to-suit in 2006 for Cracker Barrel and is positioned at one of the highest trafficked corners in Indianapolis, directly off of Interstate 465 along Michigan Road. There are several hotels nearby including the Homewood Suites by Hilton and Extended Stay by Marriot directly behind Cracker Barrel. There is a Pear Tree Inn directly next door, as well as a Quality Inn adjacent and a La Quinta Inn by Wyndham, Days Inn & Suites by Wyndham and a Motel 6 all down the street. Costco is just down the street, which is another economic and traffic driver for this corridor, in additional to the several other national retailers nearby including Walmart, Lowe’s, At Home, The Room Place, Big Lots, JCPenney, Party City, Aldi, Studio Movie Grill and dozens of others. The building is perfectly positioned, with immediate accessibility to the Interstate 465 beltway, exposure to some of the highest traffic counts in the state, and in close proximity to a number of traffic/economic drivers and in one of the most robust demographic regions in Indiana.

Cracker Barrel signed an original 10-year ground lease in 2006, and since negotiated lease extensions in alignment with the original lease. In September 2020, Cracker Barrel announced their plan to launch their very first “Ghost Kitchen” location at this site, using it as a test site for the concept. Cracker Barrel chose this location based off the local market and its proximity to numerous other successful Cracker Barrel locations. Ghost Kitchens are an emerging trend, where they prepare food for off-site consumption, allowing restaurants to fulfill delivery orders without the extra expense of having servers and other employees on site. Sandra Cochran, the President and CEO of Cracker Barrel, said this location will handle local catering orders, potentially producing new menu items that the chain’s other locations might not have the time, equipment or expertise to make. The Michigan Road facility will also prepare food for services like DoorDash and may be used to increase other locations production during busy periods. Cracker Barrel has been focused on growing its off-premise sales, with the company announcing its off-premise sales during the fourth quarter 2019 were up 145% and represented about 35% of total restaurant sales.(IBJ) Cracker Barrel’s current lease currently expires April 2, 2022, with the Landlord garnering an additional $12,000 annually from Billboard Income with Outfront Medial LLC. 5 INVESTMENT SUMMARY o Cracker Barrel’s First “Ghost Kitchen” Location – Elected to Test Concept at this Location due to “Strength of Local Market and Nearby Presence of Numerous other Cracker Barrel Restaurants” (IBJ) o Ghost Kitchens Prepare Food for Off-Site Consumption – Allows Restaurants to Fulfill Delivery Orders without Extra Expense of Servers other Employees on Site o Michigan Road Facility will also Prepare Food for Individual Orders through Services like DoorDash & will be used to Increase other Locations’ Production Capacity during Busy Periods o Cracker Barrel’s Current Lease Expires April 2, 2022 | Landlord Garners Additional $12,000 Annually in Billboard Income from Outfront Medial LLC. o Located at One of the Highest Trafficked Corners in Indiana (129,588 VPD on I-465 & 50,491 VPD on Michigan Road) o Interstate 465 Beltway Exit Location | Positioned as the First Building off the I-465 Exit 6 o Costco, Walmart & Lowe’s Home Improvement down the Street | Major Economic & Traffic Drivers for the Area OFFERING SUMMARY EXECUTIVE SUMMARY CRACKER BARREL’S GHOST KITCHEN Click to View Map: 9350 N Michigan Rd, Indianapolis, IN 46268 Pricing Price $2,000,000 Cap Rate 8.32% Building Square Footage 10,000 Year Built/Renovated 2006 Avg. HH Income Population Guarantee $114,222 within 1 Miles 139,530 within 5 Miles Corporate Lot Size 2.16 Acres Annualized Operating Data Lease Year Annual Rent Monthly Rent Current: $154,440 $12,870

Option I (4/3/2022-4/2/2027) $154,440 $12,870 Net Operating Income Cap Rate Years Left on Lease Option II (4/3/2027-4/2/2032) $169,884 $14,157 $166,440 8.32% 1 Year & 7 Months Option III (4/3/2032-4/2/2037) $186,872 $15,572 Option IV (4/3/2037-4/2/2042) $205,559 $17,219

Option V (4/3/2042-4/2/2037) $226,115 $18,842 Net Operating Income $166,440*

*NOI: $154,550 (Annual Rent) + $12,000 (Billboard Rent) Tenant Summary Lease Commencement April 3, 2006 Lease Expiration April 2, 2022 Term Remaining 1 Year & 7 Months

Original Term 10 Years Guarantee Corporate Lease Type Ground Lease Landlord Responsibilities None Right of First Refusal (ROFR) Yes 7 Option to Terminate None

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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Services, Inc. © 2015 Marcus & Millichap GHOST KITCHEN VALUE CHAIN VALUE CHAIN

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TENANT APPROX. RENT LEASE APPORX. BASE ANNUAL LEASE RENEWAL SUITE OCCUPANCY RENT INCREASES NAME RENTABLE SF COMMENCE EXPIRATION RENT/SF RENT/MONTH RENT TYPE OPTIONS

1 Cracker 10,000 100% 4/3/2006 4/2/2022 $15.44 $12,870 $154,440 Ground Option I - $15.44psf (5), 5-Year Barrel Lease Option II - $16.99psf Option III - $18.69psf Option IV - $20.56psf Option V - $22.61psf

OUTFRONT Increase (2024)-$12,500 Billboard 12/1/2004 12/31/2033 $1,000 $12,000 Media LLC Increase (2029)-$13,000

TOTAL SQUARE FEET: 10,000 100% MONTHLY INCOME: $13,870

TOTAL OCCUPIED 10,000 100% ANNUAL INCOME: $166,440 SQUARE FEET:

TOTAL AVAILABLE 0 0% AVERAGE NNN RENT PSF: $16.64 SQUARE FEET:

FOOTNOTE:

TENANT OVERVIEW LEASE ABSTRACT TENANT SUMMARY

COMMON AREA Tenant Responsible; Handles Directly MAINTENANCE: REAL ESTATE Tenant Responsible; Handles Directly TAXES:

INSURANCE: Tenant Responsible; Handles Directly Cracker Barrel Old Country Store, Inc. is an American chain of ROOF AND combined restaurant and gift stores with a Southern country theme. Tenant Responsible for Repairs and Replacement STRUCTURE The company was founded in 1969 in Lebanon, Tennessee and has now grown to 660 locations and has over 73,000 team members. The HVAC Tenant Responsible for Maintenance & Replacement company is publicly traded on the NASDAQ under the ticker symbol “CBRL” and is a S&P 400 Component. Cracker Barrel reports annual revenues in excess of $3.07 billion. Cracker Barrel previously was a ESTOPPEL Tenant shall have 15 Days to provide an executed Estoppel parent company for Logan’s Roadhouse from 1999-2006, and is currently the parent company of Rocking Chair, Inc. and Maple Street Biscuit Company. In 2020, Cracker Barrel announced their plans of launching their “Ghost Kitchen” concept in an effort to grow their off- premises sales.

OWNERSHIP: Public TENANT: Corporate LOCATIONS: 660 COMPANY REVENUE: $3.07 Billion STOCK SYMBOL (PARENT): NASDAQ: “CBRL” S&P CREDIT RATING: N/A HEADQUARTERED: Lebanon, Tennessee WEBSITE: www.crackerbarrel.com 11

W 86TH STREET (28,057 VPD)

Brebeuf Jesuit Preparatory School LOCAL MAP

2.7 MILES 10.2 MILES 12.2 MILES Peyton Manning Indianapolis Motor Downtown Children Speedway Indianapolis Hospital REGIONAL MAP

124 MILES 126 MILES 172 MILES Cincinnati, Louisville, Chicago, Ohio Kentucky Illinois

MARKET OVERVIEW MARKET OVERVIEW INDIANAPOLIS OVERVIEW

The Indianapolis metro houses the state capitol and is a growing tech hub. Situated in central Indiana, the market consists of 11 counties: Marion, Johnson, Hamilton, Boone, Hendricks, Morgan, Hancock, Shelby, Brown, Putnam and Madison. The metro lacks formidable development barriers, except for the several rivers and creeks that traverse the region. Marion County is home to Indianapolis, which contains a population of approximately 863,200 people. Fishers in Hamilton County is the second most populous with more than 93,300 residents. Most of the surrounding counties are rural, offering builders ample land for residential and commercial development. Population growth is primarily concentrated to the northern suburbs and west of the city. METRO HIGHLIGHTS

PREMIER DISTRIBUTION HUB Around 50 percent of the U.S. population lies within a one-day drive of Indianapolis, making it a center for the transportation of goods.

MAJOR HEALTH SCIENCES CENTER Eli Lilly & Co., Roche Diagnostics Corp. and Covance Inc. maintain operations in the region, among other major health-related employers.

LOW COST OF DOING BUSINESS Indianapolis’ costs are far below national averages, attracting businesses and residents to the area. MARKET OVERVIEW MARKET OVERVIEW

ECONOMY ▪ Indianapolis’ economy has diversified from manufacturing into a variety of other industries, including a growing tech sector underpinned by Salesforce.com. ▪ The metro is one of the key health-sciences centers in the nation, anchored by several pharmaceutical and life-sciences companies, including Ely Lilly and Roche Diagnostics. ▪ A well-developed interstate network and accessibility to a large portion of the nation in one day by ground or air make the region a burgeoning logistics and distribution hub. ▪ Indianapolis hosts three Fortune 500 firms: Anthem, Eli Lilly and Simon Property Group.

MAJOR AREA EMPLOYERS Eli Lilly & Co. Indiana University Health Calumet Specialty Products Simon Property Group Cummins, Inc. The Kroger Co. IUPUI FedEx Roche Diagnostics Finish Line SHARE OF 2019 TOTAL EMPLOYMENT

9% 16% 13% 10% 6% MANUFACTURING PROFESSIONAL AND GOVERNMENT LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES BUSINESS SERVICES

21% 5% + 15% 1% 4% TRADE, TRANSPORTATION CONSTRUCTION EDUCATION AND INFORMATION OTHER SERVICES AND UTILITIES HEALTH SERVICES MARKET OVERVIEW MARKET OVERVIEW

DEMOGRAPHICS SPORTS

▪ The metro is expected to add almost 86,000 people through 2024, which will result in the formation of nearly 36,400 households, generating demand for housing. ▪ A median home price below the national level has produced a homeownership rate of 59 percent, which is slightly above the national rate of 57 percent. ▪ Roughly 33 percent of people age 25 and older hold bachelor’s degrees; among those residents, 12 percent also have earned a graduate or professional degree.

2019 Population by Age 7% 20% 6% 28% 26% 13% EDUCATION 0-4 YEARS 5-19 YEARS 20-24 YEARS 25-44 YEARS 45-64 YEARS 65+ YEARS

2019 2019 2019 2019 MEDIAN POPULATION: HOUSEHOLDS: MEDIAN AGE: HOUSEHOLD INCOME: 2.1M 791K 36.5 $59,900 Growth Growth U.S. Median: U.S. Median: 2019-2024*: 2019-2024*: 4.2% 4.6% 38.1 $60,800

QUALITY OF LIFE ARTS & ENTERTAINMENT Indianapolis offers residents many big-city amenities in an affordable, small-town atmosphere. The city is home to several high-profile auto races, including the Indianapolis 500 and Brickyard 400. Races are hosted at the Indianapolis Motor Speedway and the Lucas Oil Raceway at Indianapolis. The metro has two major league sports teams: the Indianapolis Colts (NFL) and the Indiana Pacers (NBA). The area also has a vibrant cultural and arts scene, with more than 200 art galleries and dealers, the Indianapolis Symphony Orchestra and a variety museums, including the Eiteljorg Museum of American Indians and Western Art. Additionally, the Children’s Museum of Indianapolis is one of the largest children’s museums in the world. MARKET OVERVIEW MARKET OVERVIEW

HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 Miles POPULATION 1 Miles 3 Miles 5 Miles Total Average Household Retail Expenditure $66,495 $63,432 $68,495 ▪ 2018 Estimate ▪ Consumer Expenditure Top 10 Categories Total Population 3,529 52,301 147,876 Housing $17,036 $16,397 $17,480 ▪ 2010 Census Transportation $11,867 $11,567 $12,638 Total Population 3,018 49,644 139,530 Shelter $9,782 $9,401 $10,000 ▪ 2000 Census Food $6,709 $6,531 $7,084 Total Population 2,761 45,727 127,625 Personal Insurance and Pensions $6,609 $6,333 $7,144 ▪ Current Daytime Population Health Care $4,972 $4,424 $4,783 2018 Estimate 3,197 40,565 111,638 Utilities $3,808 $3,706 $3,936 HOUSEHOLDS 1 Miles 3 Miles 5 Miles Entertainment $2,847 $2,712 $3,023 ▪ 2023 Projection Household Furnishings and Equipment $2,071 $1,614 $1,719 Total Households 1,709 22,593 59,359 Cash Contributions $1,691 $1,598 $1,731 ▪ 2018 Estimate Total Households 1,454 21,330 55,781 POPULATION PROFILE 1 Miles 3 Miles 5 Miles ▪ Population By Age Average (Mean) Household Size 2.12 2.28 2.48 2017 Estimate Total Population 3,018 49,644 139,530 ▪ 2010 Census Under 20 20.33% 25.11% 27.94% Total Households 1,362 19,920 51,741 20 to 34 Years 17.70% 23.26% 19.37% ▪ 2000 Census 35 to 39 Years 5.95% 6.71% 6.53% Total Households 1,592 17,597 45,501 40 to 49 Years 12.43% 11.99% 13.19% ▪ Occupied Units 50 to 64 Years 22.57% 18.96% 20.15% 2023 Projection 1,709 22,593 59,359 Age 65+ 21.02% 13.97% 12.84% 2018 Estimate 1,500 22,907 59,142 Median Age 45.18 36.16 37.05 HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles ▪ Population 25+ by Education Level ▪ 2018 Estimate 2017 Estimate Population Age 25+ 2,266 33,950 92,495 $150,000 or More 21.02% 16.10% 19.61% Elementary (0-8) 1.74% 2.95% 2.23% $100,000 - $149,000 16.43% 13.19% 14.79% Some High School (9-11) 1.95% 4.15% 3.80% $75,000 - $99,999 9.32% 10.35% 11.61% High School Graduate (12) 16.52% 17.16% 16.09% $50,000 - $74,999 13.43% 16.03% 15.36% Some College (13-15) 16.06% 18.64% 18.72% $35,000 - $49,999 12.31% 13.92% 12.49% Associate Degree Only 7.32% 6.79% 7.33% Under $35,000 27.48% 30.43% 26.14% Bachelors Degree Only 30.47% 29.34% 30.13% Average Household Income $114,222 $99,800 $111,029 Median Household Income $69,112 $57,497 $67,551 Graduate Degree 24.76% 20.08% 20.96% Per Capita Income $55,026 $43,062 $44,507

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