JACK in the BOX GROUND LEASE – 20 YRS 9147 EAST BROADWAY ROAD MESA,Lakewood, AZ 85208 CO AERIAL PHOTO JACK in the BOX GROUND LEASE – 20 YRS

REPRESENTATICE

CONSTRUCTION PHOTO AS OF 2/28/2019

Offering Memorandum JACK IN THE BOX GROUND LEASE – 20 YRS 9147 EAST BROADWAY ROAD MESA,Lakewood, AZ 85208 CO AERIAL PHOTO JACK IN THE BOX GROUND LEASE – 20 YRS

178 BEDS

SUPERSTITION SPRINGS CENTER

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 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 2 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 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 Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Z0070620 performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Z0070620 AERIAL PHOTO JACK IN THE BOX GROUND LEASE – 20 YRS MESA EAST BOWL

W BROADWAY RD 18,600 CPD

Starbucks

S ELLSWORTH RD 19,500 CPD

FUTURE DEVELOPMENT

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 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 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 3 performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Z0070620 performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Z0070620 AERIAL PHOTO JACK IN THE BOX GROUND LEASE – 20 YRS AZ LOOP 202 72,500 CPD

W BROADWAY RD 18,600 CPD

S ELLSWORTH RD 19,500 CPD

FUTURE DEVELOPMENT

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 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 4 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 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 Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Z0070620 performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Z0070620 AERIALEXECUTIVE PHOTO SUMMARY JACK IN THE BOX GROUND LEASE – 20 YRS

JACK IN THE BOX GROUND LEASE – 20 YRS 9147 East Broadway Road Mesa, AZ 85208

FINANCIAL SUMMARY ANNUALIZED OPERATING DATA Price $1,933,000 LEASE YEARS ANNUAL RENT CAP RATE Down Payment 100% $1,933,000 1 - 5 $87,000.00 4.50% Cap Rate 4.50% 6 - 10 $93,960.00 4.86% Building SF 2,400 SF 11 - 15 $101,476.80 5.25% Net Cash Flow 4.50% $87,000 16 - 20 $109,594.94 5.67% Year Built 2019 Lot Size .63 Acres OPTIONS ANNUAL RENT CAP RATE Option 1 $118,362.54 6.12% LEASE SUMMARY Option 2 $127,831.54 6.61% Lease Type Absolute Triple-Net (NNN) Ground Lease Option 3 $138,058.07 7.14% Tenant Rucker Restaurant Holdings, LLC dba Jack in the Box Option 4 $149,102.71 7.71% Rent Commencement Date February 1, 2019 Lease Expiration Date January 31, 2039 BASE RENT $87,000 Lease Term Remaining 20 Years Net Operating Income $87,000 Rental Increases 8% Every 5 Years Total Return 4.50% $87,000 Renewal Options 4, 5 Year Options

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 5 performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Z0070620 TENANTAERIAL OVERVIEWPHOTO JACK IN THE BOX GROUND LEASE – 20 YRS

Jack in the Box (NASDAQ: JACK) is among the nation’s leading fast-food hamburger chains, with more than 2,250 quick-serve restaurants in 21 states. As the first major hamburger chain to develop and expand the concept of drive-thru dining, Jack in the Box has always emphasized on-the-go convenience, with approximately 85 percent of the half-billion guests served annually buying food at the drive-thru or for take-out. Jack in the Box pioneered a number of firsts in the quick-serve industry, like the breakfast sandwich and portable salads. In addition to offering high-quality products, Jack in the Box recognizes that an increasing number of quick-serve customers also want the ability to customize their meals. Whether that means forgoing the bun in favor of a low-carb burger, or substituting ingredients, customers have that flexibility at Jack in the Box. Additionally, through a wholly owned subsidiary, the company operates and franchises Qdoba Mexican Grill®, a leader in fast-casual dining, with more than 700 restaurants in 48 states, the District of Columbia and Canada. www.jackinthebox.com

FRANCHISEE OVERVIEW Rucker Restaurant Holdings LLC was founded in 2010 by Clyde Rucker. Currently serving as CEO, Clyde is an American entrepreneur, businessman, and US Army veteran that achieved the rank of Captain and has over 20 years of experience as a QSR restaurant executive. Starting with 10 original locations, he now owns 80 Jack in the Box and Denny’s restaurants in Arizona and Texas. Their revenue for 2017 was just under $100 million. See the following link for more details: https://en.wikipedia.org/wiki/Clyde_Rucker

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 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 6 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 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 Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Z0070620 performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Z0070620 AERIALPROPERTY PHOTO DESCRIPTION JACK IN THE BOX GROUND LEASE – 20 YRS

INVESTMENT HIGHLIGHTS LOCATION OVERVIEW • New Absolute Triple-Net (NNN) Ground Lease – 20 Year Lease Term Mesa is the third largest city in Arizona, after Phoenix and Tucson, and the 38th • Brand New 2019 Construction with a Drive-Thru largest city in the U.S. It is home to numerous higher education facilities, including the Polytechnic campus of Arizona State University. The city’s top employers include • The Franchisee Owns 80 Jack in the Box and Denny’s Restaurants in Arizona and Banner Health, Boeing, Walmart, Fry’s Food & Drug, and The Home Depot. Texas With dynamic recreational, educational and business opportunities, Mesa enjoys • Signalized Hard Corner Location – 38,100+ CPD Along the E Broadway Road & S the best in a variety of amenities including parks within easy walking distance from Ellsworth Road Intersection home, a variety of sports facilities that cater to athletes young and old, highly rated • 221,163 Residents in Growing Mesa Trade Area – Phoenix MSA golf courses for every skill level, a diversity of special events and community festivals, and Mesa’s ever-popular Chicago Clubs and Oakland A’s Spring Training baseball. • Directly Off the AZ Loop 202 Freeway (72,500+ CPD), a Major Connector for the Starbucks Phoenix MSA The Phoenix metro consists of Maricopa and Pinal counties, and includes more than • Across from Fry’s Food & Drug 30 incorporated and more than 30 unincorporated towns and cities. Since 2000, the population in the metro increased by more than 38 percent. The largest city is • Close Proximity to Superstition Springs Center – Over 150 Retail Stores and Phoenix, which encompasses about 520 square miles, is the capital city and boasts Restaurants a population of more than 1.5 million. • Approximately 1 Mile from Skyline High School (2,600 Students) As one of the primary beneficiaries of the massive shift in the U.S. population • Over 187,390 Daytime Employees in 5-Mile Radius from north to south, the Phoenix metro has had little difficulty finding workers; the challenge, though, is attracting high-paying jobs. Phoenix claims five Fortune 500 headquarters, including Freeport-McMoRan, Republic Services, Insight Enterprises, DEMOGRAPHICS Avnet and PetSmart. Construction, high-tech manufacturing, healthcare and tourism Population 1-Mile 3-Miles 5-Miles dominate the Phoenix economy. The local economy has strengthened since the recession, with retail sales projected above 8 percent this year and hotel occupancy 2022 Projection 16,083 111,815 244,985 levels rising. 2017 Estimate 15,596 101,470 221,163 Growth 2017 - 2022 3.12% 10.20% 10.77% Households 1-Mile 3-Miles 5-Miles 2022 Projections 7,027 45,292 99,487 2017 Estimate 6,668 40,645 89,133 Growth 2017 - 2022 5.38% 11.43% 11.62% Income 1-Mile 3-Miles 5-Miles 2017 Est. Average Household Income $47,812 $68,383 $70,025 2017 Est. Median Household Income $36,274 $52,255 $53,572 2017 Est. Per Capita Income $20,453 $27,462 $28,317

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 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 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 7 performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Z0070620 performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Z0070620 AERIALPROPERTY PHOTO PHOTOS JACK IN THE BOX GROUND LEASE – 20 YRS

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 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 8 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 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 Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Z0070620 performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Z0070620 LOCALAERIAL MAP PHOTO JACK IN THE BOX GROUND LEASE – 20 YRS

Starbucks MAP

Williams-Sonoma

4 MILES 20 MILES 26 MILES 30 MILES Superstition Arizona State Phoenix Sky Harbor Downtown Springs Center University International Airport Phoenix

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 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 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 9 performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Z0070620 performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Z0070620 Net Leased Disclaimer Confidentiality Agreement

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus By accepting this Marketing Brochure, you agree to treat the information contained & Millichap and it should not be made available to any other person or entity without herein regarding the lease terms as confidential and proprietary and to only use such the written consent of Marcus & Millichap. By taking possession of and reviewing the information to evaluate a potential purchase of this net leased property. information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy The information contained in this Marketing Brochure has been obtained from sources or duplicate any part of the offering memorandum. If you have no interest in the subject we believe to be reliable. However, Marcus & Millichap has not and will not verify any of property at this time, please return this offering memorandum to Marcus & Millichap. this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever This offering memorandum has been prepared to provide summary, unverified financial about the accuracy or completeness of any information provided. and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a As the Buyer of a net leased property, it is the Buyer’s responsibility to independently substitute for a thorough due diligence investigation. Marcus & Millichap has not made confirm the accuracy and completeness of all material information before completing any any investigation, and makes no warranty or representation with respect to the income purchase. This Marketing Brochure is not a substitute for your thorough due diligence or expenses for the subject property, the future projected financial performance of the investigation of this investment opportunity. Marcus & Millichap expressly denies any property, the size and square footage of the property and improvements, the presence obligation to conduct a due diligence examination of this Property for Buyer. or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or Any projections, opinions, assumptions or estimates used in this Marketing Brochure are the financial condition or business prospects of any tenant, or any tenant’s plans or for example only and do not represent the current or future performance of this property. intentions to continue its occupancy of the subject property. The information contained The value of a net leased property to you depends on factors that should be evaluated by in this offering memorandum has been obtained from sources we believe to be you and your tax, financial and legal advisors. reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a care- matters and makes no warranty or representation whatsoever regarding the accuracy or ful, independent investigation of any net leased property to determine to your satisfaction completeness of the information provided. All potential buyers must take appropriate with the suitability of the property for your needs. measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property. Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & at this or other locations is an important consideration, it is not a guarantee of future MILLICHAP AGENT FOR MORE DETAILS. success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be inter- rupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property. exclusivelyExclusively listed by: listed

JAMIE MEDRESS MARK RUBLE CHRIS LIND OFFICES NATIONWIDE Executive Managing Director Senior Managing Director First Vice President www.marcusmillichap.com PHOENIX OFFICE PHOENIX OFFICE PHOENIX OFFICE Tel: (602) 687-6778 Tel: (602) 687-6766 Tel: (602) 687-6780 Fax: (602) 687-6717 Fax: (602) 687-6710 Fax: (602) 687-6710 [email protected] [email protected] [email protected]