EL POLLO LOCO ™ 9455 Forest Ln | Dallas, TX El Pollo Loco, Dallas TX | 1 ®

OFFERING MEMORANDUM

A B R A M S R O A D

S U B J E C T P R O P E R T Y

traffic counts INTERSTATE 635...... ±188,000 ADT ™ ABRAMS2 | ROAD...... ±21,000Matthews RealRetail ADT Estate Advisors Investment Services ®

contents

04 EXECUTIVE SUMMARY

06 financial OVERVIEW

10 tenant overview

14 area OVERVIEW

exclusively listed by

GARY CHOU FVP & SENIOR DIRECTOR STNL A B R A M S R O A D [email protected] DIR (310) 919-5827 MOB (714) 928-8016 LIC # 01911222

S U B J E C T P R O P E R T Y KEVIN CHANG ASSOCIATE

[email protected] DIR (310) 919-5828 MOB (951) 616-8918 LIC # 01976724

KYLE MATTHEWS BROKER OF RECORD

LIC # 678067

El Pollo Loco, Dallas TX | 3 executive summary investment highlights EXTREMELY SECURE LEASE • Corporate Ground Lease – The income over the next 20 years is backed by over 400 units and $355MM in annual sales – Incredibly secure property! • Tenant Invested Site – As a ground lease, tenant picked this location and invested in the construction of this site – Motivated to stay for the long term! • Pride of Ownership – This property was built in 2016 allowing owner to purchase a newly constructed site with a brand-new lease • Publicly Traded Company – Headquartered in Costa Mesa, CA, El Pollo Loco (NASDAQ: LOCO) has a market cap of over $504MM and employs over 5,100 people in Nevada, Arizona, Utah, Texas and California

IDEAL RETAIL PROPERTY • Highly Traveled Intersection – Located on the corner of a strong retail corridor, this property can be easily accessed and seen by over 50,000 VPD traveling on Forest Ln and Abrams Rd • Strong Retail Corridor – Just off I-635 (over 200,000 VPD), shoppers are attracted to the area by Walmart and other high quality tenants – This retail corridor is the most convenient pit stop for the students of Richland College, home to over 19,000 undergraduate students • Income Tax Free State – Texas is an income tax free state – Huge benefit to those also living in an income tax free state

RETAIL FRIENDLY DEMOGRAPHICS • Double Digit Growth – Between 2010-2016, the surrounding area has experienced explosive population growth – 7.15% in a 1-mile, 6.73% in a 3-mile and 7.04% in a 5-mile radius; There is steady projected growth over the next 5 years with 6.16% growth in a 1-mile, 5.50% growth in a 3-mile and a 5.68% growth in a 5-mile • Healthy Household Income – Average household income in a 1-mile radius is 60,000, 3-mile radius is 73,000 and 5-mile radius is 86,000 • Strong Population Counts – The area services over 188,000 people in a 3-mile radius and over 419,000 people in a 5-mile radius

4 | Matthews Real Estate Investment Services property overview

9455 Forest Ln El Pollo Loco Dallas, TX 75243

Gross Leasable Area ± 2,800 SF

Lot Size ± .74 Acres (32,234 SF)

Year Built 2017

Assessor’s Parcel Number 008417000001A0000

Number of Stories One

Parking ±29 Free Surface Spaces

El ElPollo Pollo Loco, Loco, Dallas Dallas TX TX | 5| 5 financial overview6 | Matthews Real Estate Investment Services el pollo loco 9455 Forest Ln Dallas, TX 75243 List Price ��$3,368,000 CAP Rate - Current �� 4.75% Gross Leasable Area ��± 2,800 SF Lot Size ��± .73 Acres Year Built �� 2016

Annualized Operating Data Monthly Rent Annual Rent Rent/SF CAP Current - 12/31/2021 $13,333.33 $160,000.00 $57.14 4.75% 1/1/2022 - 12/31/2026 $14,666.67 $176,000.00 $62.86 5.23% 1/1/2027 - 12/31/2031 $16,133.33 $193,600.00 $69.14 5.75% 1/1/2032 - 12/31/2036 $17,746.67 $212,960.00 $76.06 6.32% Option 1: 1/1/36 - 12/31/41 $19,521.33 $234,256.00 $83.66 6.96% Option 2: 1/1/42 - 12/31/46 $21,473.47 $257,681.60 $92.03 7.65% Option 3: 1/1/47 - 12/31/51 $23,620.81 $283,449.76 $101.23 8.42% Option 4: 1/1/52 - 12/31/56 $25,982.89 $311,794.74 $111.36 9.26%

Tenant Summary

Tenant Trade Name El Pollo Loco Type of Ownership Ground Lease Lease Guarantor Corporate Lease Type NNN Roof and Structure Tenant Responsible Original Lease Term 20 Years Lease Commencment 8/25/2015 Rent Commencemnt 12/28/2016 Lease Expiration Date 12/31/2036 Term Remaining 19.33 Increases 10% Every 5 Years Options Four (4), 5-Year Options

El Pollo Loco, Dallas TX | 7 lease abstract

Tenant El Pollo Loco, Inc.

Ownership Ground Lease

Lease Commencement 8/25/2015

Rent Commencement 12/28/2016

Lease Expiration 12/31/2036

Lease Term 20 Years

Four (4), 5-Year; Options Tenant must give Six (6) month notice $160,000; Current NOI Next Increase 1/1/2022 10% Every 5 Years; Increases 10% Every 5 Years in Options

Taxes Tenant Responsible

Insurance Tenant Responsible

Utilities Tenant Responsible

Repairs Tenant Responsible

Roof & Structure Tenant Responsible

Right of First Refusal Ten (10) Days

8 | Matthews Real Estate Investment Services site plan

Not A Part Abrams Road ±21,000 ADT ±21,000 Road Abrams DRIVE THRU

Forest Lane ±31,000 ADT

El Pollo Loco, Dallas TX | 9 tenant overview10 | Matthews Real Estate Investment Services Property Name El Pollo Loco Parent Company Trade Name El Pollo Loco Holdings, Inc. Ownership Public Revenue $355.06M Net Income $24.05M No. of Locations ± 430 No. of Employees ± 5,171 Headquartered Costa Mesa, CA Website http://www.elpolloloco.com Year Founded 1980

TENANT OVERVIEW El Pollo Loco Holdings operates and franchises about 430 fast-casual restaurants operating under the El Pollo Loco banner. Specializing in Mexican- style chicken dishes, the chain’s menu includes chicken burritos and tacos, as well as complete chicken dinners and sides. Most El Pollo Loco outlets are found in the Los Angeles area and other markets in California. A small number can be found in four other states. About 250 of the restaurants are operated by franchisees. Juan Francisco Ochoa started the chain in Mexico in 1975. El Pollo Loco went public in 2014.

STRATEGY El Pollo Loco is uniquely positioned by offering the high-quality food and dining experience you would expect from a fast casual restaurants while providing the speed, convenience and value of traditional quick service restaurants.

El Pollo Loco, Dallas TX | 11 the offering parcel map

Property Name El Pollo Loco 9455 Forest Ln Property Address Dallas, TX 75243 ±188,000 ADT Assessor’s Parcel Number 00-84170-000-01A-0000 Zoning

Oceanside Blvd ± 31,792 Site Description Number of stories One Year built 2016 GLA 2,800 Lot (Acres) ±0.73 Type of Ownership Ground Lease

Landscaping Professional 40,116 ± Blvd College Topography Generally Level FOREST LANE ±31,000 ADT Foundation Concrete Slab Framing Steel Exterior Brick Parking Surface Asphalt Roof Flat

12 | Matthews Real Estate Investment Services tenant map Pioneer Blvd ±20,000 ADT Pioneer Blvd ±20,000

TRAFFIC COUNTS Interstate 635 ±188,000 ADT Forest Lane ±31,000 ADT

El Pollo Loco, Dallas TX | 13 Dallas, Texas Dallas is a center for corporate America. Because of its central location relative to the rest of the United States, Dallas is a popular convention site and site for many corporate headquarters and home to 21 Fortune 500 companies. The city is the largest economic center of the 12-county Dallas- Fort Worth-Arlington metropolitan area. The economy is primarily based on banking, commerce, telecommunications, technology, energy, healthcare and medical research, and transportation and logistics.

DALLAS DEMOGRAPHICS

POPULATION 1 Mile 3 Mile 5 Mile HOUSEHOLDS 3 Mile 5 Mile 10 Mile 2022 Projection 31,476 179,693 424,354 2022 Projection 13,980 70,937 172,829 2017 Estimate 29,649 170,320 401,557 2017 Estimate 13,203 67,373 163,704 2011 Census 27,671 159,583 375,132 Growth 2017 - 2022 5.88% 5.29% 5.57% 2001 Census 29,806 178,555 397,507 INCOME 3 Mile 5 Mile 10 Mile 2017 Est. Average Growth 2017 - 2022 6.16% 5.50% 5.68% $60,267 $73,478 $86,879 Household Income

14 | Matthews Real Estate Investment Services DALLAS FAST FACTS population Dallas is the 9th largest city in the US and the third largest in Texas with a population of 1,281,047. metropolitan statistical area The Dallas-Fort Worth Arlington MSA consists of 12 counties: Collin, Dallas, Delta, Denton, Ellis, Hunt, Johnson, Kaufman, Parker, Rockwall, Tarrant and Wise and has a population of 6,954,330. annual visitors 24.9 million annual visitors to the City of Dallas, with 48.9 million visiting the Metro area accessibility Dallas is centrally located and within a four-hour flight from most North American destinations. It is served by two airports; Dallas/Ft. Worth International and Dallas Love Field that combined provide more than 2,200 flights daily. AMTRAK also provides daily service to Dallas via Union Station.

city outline

El Pollo Loco,CVS, NorwalkDallas TX CA | 15| 15 Dallas-Fort Worth MSA DALLAS BY THE NUMBERS The Dallas-Fort Worth Metroplex is the largest metropolitan area in the South, and fourth largest in the United States. It is a center for sporting events, tourism and manufacturing. Dallas and its suburbs have one of the highest concentrations of corporate headquarters in the United States. Business management and operations is a major part of the economy. The Metroplex also contains the largest 1.26 MILLION Information Technology industry base in the state. On the other end of the business spectrum, and on the other side of the Metroplex, the POPULATION Texas farming and ranching industry is based in Fort Worth.

Much of the success can be attributed to the 21 Fortune 500 companies headquarters in North Texas, Jackson said. These companies collectively generated more than $807 billion in revenue in the past year, which is an increase of more than $13 billion from the previous 25 MILLION VISITORS PER YEAR year, according to North Texas Commission calculations.

Additionally, like the state overall, North Texas has been experiencing booming population growth. $4.3 BILLION 2015 TOURISM ECONOMIC IMPACT

16 | Matthews Real Estate Investment Services PROFESSIONAL SPORTS

The Dallas Cowboys are a The Texas Rangers are an American professional American football team professional baseball team based based in the Dallas–Fort Worth in Arlington, Texas, located in the metroplex. The Cowboys compete in Dallas–Fort Worth metroplex. The the National Football League (NFL) Rangers franchise is currently a as a member club of the league’s member of the West division of National Football Conference the American League (AL) in Major (NFC) East division. The team is League Baseball (MLB). Since 1994, headquartered in Frisco, Texas, the Rangers have played in Globe and plays its home games at AT&T Life Park in Arlington in Arlington, NFL - Dallas Cowboys Stadium in Arlington, Texas. MLB - Texas Rangers Texas.

The Dallas Mavericks (often referred The Dallas Stars are a professional to as the Mavs) are an American ice hockey team based in Dallas, professional basketball team based Texas. They are members of the in Dallas. The Mavericks compete in Central Division of the Western the National Basketball Association Conference of the National Hockey (NBA) as a member club of the League (NHL). The team was founded league’s Western Conference during the 1967 NHL expansion as Southwest Division. The team plays the Minnesota North Stars, based in its home games at the American Bloomington, Minnesota. Airlines Center. NBA - Dallas Mavericks NHL - Dallas Stars

FORTUNE 500 COMPANIES

Company Location Fluor Corporation Irving Alliance Data Systems Plano Exxon Mobil Irving Holly Frontier Dallas Trinity Industries Dallas AT&T Dallas Texas Instruments Dallas Dr Pepper Snapple Group Plano Energy Transfer Equity Dallas J.C. Penney Plano Commercial Metals Irving American Airlines Group Fort Worth Jacobs Engineering Dallas Celanese Dallas Tenet Healthcare Dallas D.R. Horton Fort Worth Energy Future Holdings Dallas Southwest Airlines Dallas GameStop Grapevine Kimberly-Clark Irving Dean Foods Dallas

El Pollo Loco, Dallas TX | 17 CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offering Memorandum contains select information pertaining to the business and affairs of El Pollo Loco located at 19455 Forest Ln, Dallas, TX 75243 (“Property”). It has been prepared by Matthews Retail Advisors. 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 Retail Advisors. 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 Retail Advisors 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 Retail Advisors 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. exclusively listed by

GARY CHOU FVP & SENIOR DIRECTOR STNL [email protected] DIR (310) 919-5827 MOB (714) 928-8016 LIC # 01911222

KEVIN CHANG ASSOCIATE

[email protected] DIR (310) 919-5828 MOB (951) 616-8918 LIC # 01976724

KYLE MATTHEWS BROKER OF RECORD

LIC # 678067

EL POLLO LOCO ™ 9455 Forest Ln | Dallas, TX El Pollo Loco, Dallas TX | 19