GOLDEN CORRAL Brand New 20 - Year Triple - Net (NNN) Sale - L e a s e b a c k

OFFERING MEMORANDUM 1053 Lenoir Rhyne Boulevard – Hickory, 28602 Confidentiality and Disclaimer

Marcus & Millichap hereby advises all prospective purchasers of properties, including newly-constructed facilities or newly- income or expenses for the subject property, the future projected Net Leased property as follows: acquired locations, may be set based on a tenant’s projected financial performance of the property, the size and square sales with little or no record of actual performance, or footage of the property and improvements, the presence or The information contained in this Marketing Brochure has been comparable rents for the area. Returns are not guaranteed; the absence of contaminating substances, PCB’s or asbestos, the obtained from sources we believe to be reliable. However, tenant and any guarantors may fail to pay the lease rent or compliance with State and Federal regulations, the physical Marcus & Millichap has not and will not verify any of this property taxes, or may fail to comply with other material terms of condition of the improvements thereon, or the financial information, nor has Marcus & Millichap conducted any the lease; cash flow may be interrupted in part or in whole due to condition or business prospects of any tenant, or any tenant’s investigation regarding these matters. Marcus & Millichap makes market, economic, environmental or other conditions. Regardless plans or intentions to continue its occupancy of the subject no guarantee, warranty or representation whatsoever about the of tenant history and lease guarantees, Buyer is responsible for property. The information contained in this Marketing Brochure accuracy or completeness of any information provided. conducting his/her own investigation of all matters affecting the has been obtained from sources we believe to be reliable; intrinsic value of the property and the value of any long-term however, Marcus & Millichap has not verified, and will not verify, As the Buyer of a net leased property, it is the Buyer’s lease, including the likelihood of locating a replacement tenant if any of the information contained herein, nor has Marcus & responsibility to independently confirm the accuracy and the current tenant should default or abandon the property, and Millichap conducted any investigation regarding these matters completeness of all material information before completing any the lease terms that Buyer may be able to negotiate with a and makes no warranty or representation whatsoever regarding purchase. 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Like all real estate investments, this investment carries significant has been prepared to provide summary, unverified information risks. Buyer and Buyer’s legal and financial advisors must request to prospective purchasers, and to establish only a preliminary ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE and carefully review all legal and financial documents related to level of interest in the subject property. The information CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE the property and tenant. While the tenant’s past performance at contained herein is not a substitute for a thorough due diligence DETAILS. Activity ID: Z0330634 this or other locations is an important consideration, it is not a investigation. Marcus & Millichap has not made any investigation, guarantee of future success. Similarly, the lease rate for some and makes no warranty or representation, with respect to the

1053 Lenoir Rhyne Boulevard – Hickory, North Carolina 28602 Table of Contents Investment Summary 4 Investment Highlights 5 Financial Analysis 6 Tenant Overview 7 Surrounding Area 8 Location Overview 9 Property Photos 10 Surrounding Area Photos 11 Regional Map 12 Demographics / Market Overview 13-14 INVESTMENT SUMMARY Marcus & Millichap is pleased to present this exclusive listing for a Golden Corral. The subject single-tenant Golden Corral is located 1053 Lenoir Rhyne Blvd in Hickory, NC. Built in 1999, the subject property consists of roughly 11,100 square feet of building space. This investment opportunity will be subject to a brand new 20-year triple-net (NNN) sale-leaseback commencing upon the close of escrow. The lease will be subject to four, five-year tenant renewal options bringing the total potential lease term to 40 years. The initial annual rent will be $250,000 and is scheduled to increase by 1.50% annually and continuing throughout the base term and option periods. The property is strategically situated on a 2.35-acre parcel. The sites positioning on Lenoir Rhyne Boulevard offers excellent visibility and exposure to the 37,000 vehicles that travel through each day.

This Golden Corral property is located at 1053 Lenoir Rhyne Blvd in Hickory, North Carolina. The property is well-positioned in a highly dense retail corridor consisting of shopping centers, national and local tenants, office complexes, and hotels. Major national and local tenants in the area include: Dollar General, Hardee’s, Outback Steakhouse, Waffle House, Zaxby’s, Starbucks, Cracker Barrel, Bojangles’ and Roadhouse. Valley Hills Mall is located one and a half miles away on the south side of Interstate 45. It operates as the only enclosed mall within a 40 mile radius (spanning six counties) and is anchored by Dillard’s, JCPenney, Belk and Sears. Catawba Valley Community College is located two miles southeast and has a total enrollment of over 4,500 students. Interstate 40 also provides for easy transportation access to nearby cities including Greensboro, Raleigh and Knoxville.

Golden Corral is an American family-style restaurant chain that features a large buffet and grill offering numerous hot and cold items, a carving station and their Brass Bell Bakery. Each location serves a daily buffet lunch and dinner and a weekend breakfast buffet. In 1971 James Maynard and William Carl conceived the idea that became Golden Corral and opened its first location in 1973. Golden Corral is a privately held company headquartered in Raleigh, North Carolina with nearly 500 locations across 40 states. Of the nearly 500 locations, over 100 sites are company-owned and the others franchised. Gross sales for the company are over $1.5 billion. The success of Golden Corral over the last 35 years can be attributed to two main factors, strategic locations for each of its restaurants, and fresh ingredients. The majority of the locations are constructed away from direct competition, focusing on small-town America. To stay ahead of the competition Golden Corral also focuses on freshness to separate it from other budget steakhouses. From the start, each Golden Corral cuts its own USDA Choice beef, offering a variety of steaks and does not charge much more than its competitors charge for imported frozen steaks. Investment Highlights PRICE: $3,571,429 | CAP: 7.00% | RENT: $250,000

About the Investment ✓ Brand New 20-Year Sale-Leaseback ✓ Triple-Net (NNN) Lease with Zero Landlord Responsibilities ✓ Has 1.5 Percent Annual Rental Increases ✓ There are Four, Five Year Tenant Renewal Options About the Location ✓ Freestanding Property ✓ Dense Retail Corridor | Surrounding Retailers Include: Dollar General, Hardee’s, Outback Steakhouse, Waffle House, Zaxby’s, Starbucks, Cracker Barrel, Bojangles’ and Texas Roadhouse ✓ Strong Traffic Counts | Lenoir Rhyne Blvd and Interstate 40 | 37,000 and 63,000 vehicles per day respectively ✓ Catawba Valley Community College | Located Two and a Half Miles From the Subject Property | Total Enrollment of Approximately 4,500 Students ✓ Hickory Metro Convention Center | One Mile Away | 76,000 Square Feet of Meeting Space About the Tenant / Brand ✓ Golden Corral is a privately held company headquartered in Raleigh, North Carolina with nearly 500 locations across 40 states. ✓ Strong Track Record With Proven Operational Expertise ✓ Over 100 of the sites are company-owned and the others franchised. Gross sales for the company are exceed $1.7 billion. ✓ Platinum Corral | Experienced Franchisee in the Golden Corral system | Operating 26 locations throughout six states.

Golden Corral – Hickory, North Carolina 5 Financial Analysis PRICE: $3,571,429 | CAP: 7.00% | RENT: $250,000

PROPERTY DESCRIPTION RENT SCHEDULE Property Golden Corral Lease Year(s) Annual Rent Monthly Rent Rent Escalation (%) Property Address 1053 Lenoir Rhyne Boulevard Year 1 $250,000 $20,833 - City, State, ZIP Hickory, NC 28602 Year Built / Renovated 1999 Year 2 $253,750 $21,146 1.50% Building Size 11,100 Year 3 $257,556 $21,463 1.50% Lot Size +/- 2.35 Acres Year 4 $261,420 $21,785 1.50% Type of Ownership Fee Simple Year 5 $265,341 $22,112 1.50% THE OFFERING Year 6 $269,321 $22,443 1.50% Purchase Price $3,571,429 Year 7 $273,361 $22,780 1.50% CAP Rate 7.00% Annual Rent $250,000 Year 8 $277,461 $23,122 1.50% Price / SF $321.75 Year 9 $281,623 $23,469 1.50% Rent / SF $22.52 Year 10 $285,847 $23,821 1.50% LEASE SUMMARY Year 11 $290,135 $24,178 1.50% Property Type Net-Leased Restaurant Year 12 $294,487 $24,541 1.50% Ownership Type Private Year 13 $298,905 $24,909 1.50% Tenant/Guarantor Franchisee (26-Unit Operator) Original Lease Term 20.0 Years Year 14 $303,388 $25,282 1.50% Lease Commencement Close of Escrow Year 15 $307,939 $25,662 1.50% Lease Expiration 20 Years from Close of Escrow Year 16 $312,558 $26,047 1.50% Lease Term Remaining 20.0 Years Year 17 $317,246 $26,437 1.50% Lease Type Triple-Net (NNN) Year 18 $322,005 $26,834 1.50% Roof & Structure Tenant Responsible Rental Increases 1.50% Annually Year 19 $326,835 $27,236 1.50% Options to Renew Four, Five-Year Options Year 20 $331,738 $27,645 1.50% *Tenant Shall Have a One-Time Termination Option in Year 12 Related to the Franchise Agreement.

Golden Corral – Hickory, North Carolina 6 Tenant Overview Property Address: 1053 Lenoir Rhyne Blvd – Hickory, NC 28602

ABOUT GOLDEN CORRAL

When the first Golden Corral® restaurant opened in Fayetteville, North Carolina in 1973, Golden Corral Corporation took a confident first step in the restaurant business, beginning a tradition of offering guests real, wholesome foods in a family-friendly atmosphere and at a great value. Nearly 45 years of success and 500 locations later, Golden Corral is recognized by Nation’s Restaurant News as “America’s #1 buffet and grill.” Golden Corral's legendary endless buffet features an abundant variety of delicious all-time favorites and new menu offerings for breakfast, brunch, lunch and dinner. Guests can choose from over 150 items including USDA, grilled to order sirloin steaks, pork, seafood, and shrimp alongside traditional favorites like pot roast, fried chicken, meatloaf, mashed potatoes, mac and cheese, Bourbon Street Chicken, fresh salads, famous yeast rolls, the ALL NEW Smokehouse and more. And… dessert innovations are headlined by freshly-spun cotton candy, decadent desserts (that rival the Las Vegas buffets!), as well as the Famous Chocolate Fountain featuring a non-stop stream of chocolate, with a variety of fresh fruits and sweet tooth favorites that are available for dipping and dunking. Gross sales for the company exceed $1.7 billion.

In addition to the buffet services, giving back is the hallmark of the Golden Corral brand. As of 2017, Golden Corral has served over 5,400,00 meals to our military heroes and has raised over $14 million dollars for Disabled American Veterans. Additionally, over the past 6 years, Golden Corral restaurants and guests have raised over $9 million dollars and sent nearly 18,000 military children to Camp Corral. PLATINUM CORRAL

Platinum Corral was founded in 1996 as a multi-unit franchise operator of Golden Corral Buffet-Grill restaurants. They have become one of the largest, most progressive and fastest growing operations in the Golden Corral system. Platinum Corral currently operates 26 locations within North Carolina, South Carolina, Ohio, Virginia, West Virginia, and Kentucky.

Golden Corral – Hickory, North Carolina 7 Surrounding Area Property Address: 1053 Lenoir Rhyne Blvd – Hickory, NC 28602

Golden Corral – Hickory, North Carolina 8 Location Overview Property Address: 1053 Lenoir Rhyne Blvd – Hickory, NC 28602

The subject property is well-positioned in a dense retail and office corridor consisting of many national and local tenants. Surrounding major retailers include Dollar General, Hardee’s, Outback Steakhouse, Waffle House, Zaxby’s, Starbucks, Cracker Barrel, Bojangles’ and Texas Roadhouse. Valley Hills Mall is located one and a half miles away on the ADTC: 14,000 south side of Interstate 40. It operates as the only enclosed mall within a 40 mile radius (spanning six counties) and is anchored by Dillard’s, JCPenney, Belk and Sears. Surrounding Valley Hills Mall along US Highway 70 sits several other major tenants including Walmart, Sam’s Club, Lowe’s, Home Depot, Target, AMC.

The Hickory Metro Convention Center is located one-mile away and is ideal for conferences, banquets, corporate meetings, events and trade show locations in western North Carolina. The convention center features over 76,000 square feet of meeting space and accommodates groups up to 3,800. Catawba Valley Community College is located two miles southeast and has a total enrollment of over 4,500 students. I-40 also provides for easy transportation access to nearby cities including Greensboro, Raleigh and Knoxville. ADTC: 37,000 The Golden Corral is located on Lenoir Rhyne Boulevard, which experiences average daily traffic counts of 37,000 vehicles. Lenoir Rhyne Boulevard intersects with nearby Interstate 40, which brings in an additional 63,000 vehicles to the immediate area per day. There are roughly 30,700 individuals residing within a three mile radius of the subject property and over 69,500 individuals within a five mile radius. ADTC: 63,000 Hickory is a city located primarily in Catawba County, NC, with parts in adjoining Burke and Caldwell counties. Currently, the area is home to many leading manufacturers of furniture, fiber optic cable, and pressure- sensitive tape. It is estimated 60% of the nation's furniture used to be produced within a 200-mile radius of Hickory. Forty percent of the world's fiber optic cable is made in the Hickory area. Hickory is the retail hub of the foothills and Unifour region, and is home to the largest shopping mall in the region Valley Hills Mall. Golden Corral – Hickory, North Carolina 9 Property Photo

Subject Property

Golden Corral – Hickory, North Carolina 10 Surrounding Area Photos

Golden Corral – Hickory, North Carolina 11 Regional Map Property Address: 1053 Lenoir Rhyne Blvd – Hickory, NC 28602

NORTH CAROLINA

Golden Corral – Hickory, North Carolina 12 Demographics Property Address: 1053 Lenoir Rhyne Blvd – Hickory, NC 28602 3 Mile 5 Miles10 Miles Population Trends: 2022 Projection 30,851 70,305 157,666 2017 Estimate 30,676 69,735 156,984 2010 Census 30,406 68,171 155,954 Growth 2017 - 2022 0.57% 0.82% 0.43% 10 Miles Growth 2010 - 2017 0.89% 2.29% 0.66% 2017 Population Hispanic Origin 4,899 8,429 14,093 Population by Race (2017): White 22,920 56,774 134,198 5 Miles Black 5482 7899 12269 3 Miles American Indian & Alaskan 193 415 844 Asian 1327 3098 6749 Hawaiian & Pacific Island 25 71 129 Other 729 1477 2795 Household Trends: 2022 Projection 12,652 28,419 62,360 2017 Estimate 12,587 28,198 62,095 2010 Census 12,502 27,606 61,677 Growth 2017 - 2022 0.52% 0.78% 0.43% Growth 2010 - 2017 0.68% 2.14% 0.68% Owner Occupied 6152 17475 43362 Renter Occupied 6435 10724 18734 Average Household Income (2017): $49,920 $59,884 $57,741 Households by Household Income (2017): <$25,000 4363 8384 17427 $25,000 - $50,000 4207 8563 19065 $50,000 - $75,000 1962 4301 10393 $75,000 - $100,000 841 2617 6910 $100,000 - $125,000 496 1791 3576 $125,000 - $150,000 115 429 998 $150,000 - $200,000 251 1096 2181 Median Household Income (2017): $34,832 $39,279 $40,636

Golden Corral – Hickory, North Carolina 13 Market Overview City: Hickory | County: Catawba | State: North Carolina Hickory is a city located primarily in Catawba County, North Carolina, with parts in adjoining Burke and Caldwell counties. The Hickory area historically competed in new industries and technologies by applying old Hickory, NC strengths and favorable geography. In this way, wagon-making know-how, proximity to expansive forests, and excellent transportation via two intersecting railroads provided fertile ground for the emergence of the furniture industry. Likewise experience with textile manufacturing and easy access to power drove new industries in both fiber-optic cable and pressure-sensitive tape.

Currently the area is home to many leading manufacturers of furniture, fiber optic cable, and pressure-sensitive tape. It is estimated 60 percent of the nation's furniture used to be produced within a 200-mile radius of Hickory. Forty percent of the world's fiber optic cable is made in the Hickory area. The Hickory area is additionally marketed as a data-center corridor and is home to large data-centers operated by Apple and Google. Apple's billion-dollar data-center campus just south of Hickory is one of the world's largest. Hickory is the retail hub of the foothills and Unifour region, and is home to the largest shopping mall in the region Valley Hills Mall. Major Employers Employer Estimated # of Employees Catawba Valley Medical Ctr Inc 1,304 Te Connectivity 1,300 DUKE LIFEPOINT HEALTHCARE 1,290 Shurtape Technologies LLC 1,154 Shurtape Technologies Inc 900 Century Case Goods Division 700 Planning and Development 650 Thomasville Furniture 622 Hickory Chair Company 600 Corning Optcal Cmmncations LLC 513 ADC Dsl Systems Inc 500 Valley Hills Mall LLC 500

Golden Corral – Hickory, North Carolina 14 EXCLUSIVE NET LEASE OFFERING

NC BROKER OF RECORD: Allen Smith Marcus & Millichap REIS of North Carolina 201 S Tryon St Suite 1220 Charlotte, NC 28202 Tel: 704-831-4600 1053 Lenoir Rhyne Blvd – Hickory, North Carolina 28602 License: 127350