NEW LONGHORN STEAKHOUSE ON A 10-YEAR GROUND LEASE IN AMERICA’S #1 TOURISM DESTINATION AND FASTEST GROWING JOB MARKET ICONIC REAL ESTATE WITHIN A 6-MINUTE DRIVE TO UNIVERSAL STUDIOS AND ACROSS FROM A TOP 10 U.S. RETAIL ASSET 17 Million Annual Visitors Downtown 6 Miles TopTop 1010 U.S.U.S. RetailRetail AssetAsset Orlando 19.7 Million Annual Visitors 6 minute DRIVE FROM 10th and 14th Most Visited Theme Parks in the World OAK RIDGE TO UNIVERSAL Major Blvd Interstate I-4 Express Lane Ramps - Under Construction 4 172,000 VPD Grand National Dr Oak Ridge Road 25,000 VPD International Drive 27,000 VPD ACTUAL LOCATION LONGHORN STEAKHOUSE 5460 W OAK RIDGE RD | ORLANDO, FL CLICK TO VIEW PROPERTY VIDEO INVESTMENT ADVISORS MICHAEL BREWSTER Director 407.745.3911 [email protected] MARC MANDEL Managing Director 484.532.4212 [email protected] STEVE SCHRENK Director 484.532.4213 [email protected] BRAD PETERSON Senior Managing Director 407.745.3910 [email protected] WHITAKER LEONHARDT Senior Director 407.745.3916 [email protected] ACTUAL LOCATION FINANCING Holliday Fenoglio Fowler, L.P. (Collectively “HFF”) REBECCA VANREKEN This Offering Memorandum has been prepared by HFF for use by a limited number of recipients. All information contained herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, expressed or implied, as to Managing Director the accuracy or completeness of the information contained herein. Further, the Offering Memorandum does not constitute a representation that no change in the business 407.745.3912 or affairs of the property or the Owner has occurred since the date of the preparation of the Offering Memorandum. All analysis and verification of the information contained [email protected] in the Offering Memorandum is solely the responsibility of the recipient. HFF and Owner and their respective officers, directors, employees, equity holders and agents expressly disclaim any and all liability that may be based upon or relate to the use of the information contained in this Offering Memorandum. Additional information and an opportunity to inspect the property will be made available upon written request to interested and qualified prospective investors. HFF Owner and HFF each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the property and/or terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligations to any recipient reviewing this Offering Memorandum or 250 S. Park Avenue making an offer to purchase the property unless and until such offer is approved by Owner, a written agreement for the purchase of the property has been fully executed, Suite 360 delivered and approved by Owner and its legal counsel, and any obligations set by Owner thereunder have been satisfied or waived. Winter Park, FL 32789 The recipient (“Recipient”) agrees that (a) the Offering Memorandum and its contents are confidential information, except for such information contained in the Offering Memorandum, which is a matter of public record, or is provided from sources available to the public (b) the Recipient, the Recipient’s employees, agents and consultants (collectively, the “need to know parties”) will hold and treat it in the strictest of confidence, and the Recipient and the need to know parties will not, directly or indirectly, disclose HFF or permit anyone else to disclose its contents to any other person, firm, or entity without the prior written authorization of HFF and the Owner, and (c) the Recipient and the 1700 Market Street need to know parties will not use or permit to be used this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Owner or HFF or for any purpose other than use in considering whether to purchase the property. The Recipient and the need to know parties agree to keep this Offering Memorandum and Suite 3232 all confidential information contained herein permanently confidential and further agree to use this Offering Memorandum for the purpose set forth above. If the Recipient Philadelphia, PA 19103 has no interest in the property, or if in the future the Recipient or owner discontinue such negotiations, the Recipient will return this Offering Memorandum to HFF. ACTUAL LOCATION INVESTMENT SUMMARY LONGHORN STEAKHOUSE | 5460 W OAK RIDGE RD | ORLANDO, FL · · · INVESTMENT SUMMARY Holliday Fenoglio Fowler, L.P. (“HFF”) Net Lease Advisory is pleased to exclusively offer a premier net lease opportunity to acquire a single tenant LongHorn Steakhouse (the “Property”) located in Orlando, FL, on a new 10-year corporate ground lease. ICONIC LOCATION – LongHorn Steakhouse BEST-OF-THE-BEST RETAIL MARKET – #1 TOURISM MARKET – LongHorn is one of two Darden restaurants within LongHorn Steakhouse is located immediately Steakhouse is in the heart of Orlando’s a 6-minute drive from Universal Orlando across from the Simon-owned Orlando tourist corridor and Orlando is the #1 (19.7 million annual visitors) and is directly International Premium Outlets, a Top 10 U.S. most visited city in the U.S. with over 72 connected via the new Grand National Drive Retail Asset based on sales around $1,000 PSF million visitors in 2017, an all-time U.S. overpass–a soon-to-be access point for I-4 and rents rumored to be $100+ PSF. record and 66% increase since 2009. Express Lanes under construction. INVESTMENT GRADE CREDIT – LongHorn is NEW LEASE & PROTOTYPE STORE – New long-term Darden’s 2nd largest concept with over 490 stores ground lease with nearly 10 years of term remaining and 26 new stores opened over the past 2 years. and 10% rent increases every 5 years. The corporate LongHorn’s parent company, Darden Restaurants lease was signed by Rare Hospitality International, Inc, (NYSE: DRI), carries an investment-grade credit rating a subsidiary of Darden Restaurants. from S&P (BBB), Moody’s (Baa2), and Fitch (BBB). $5,475,000 ASKING PRICE 4.75% CAP RATE $260,000 NOI 9.4 Years REMAINING LEASE TERM ACTUAL LOCATION | LONGHORN STEAKHOUSE | ORLANDO | FLORIDA INVestment Summary 4 · · · INVESTMENT HIGHLIGHTS #1 JOB GROWTH – Orlando has ranked #1 for Employment Growth for 8 STRONG LOCAL DEMOGRAPHICS – Orlando’s Tourist Corridor is dense and consecutive months since May 2018 with 4.0% year-over-year job growth as of growing with a population of 92,570 residents within 3 miles of LongHorn December 2018, compared to the 1.79% national average (BLS). Steakhouse and a growth projection of 9.1% through 2024. WORLD-RENOWNED DESTINATION – TARGETED AFFLUENT SHOPPERS – Located 1.5 PREMIER MIXED-USE DEVELOPMENT – Grand International Drive features over 43,000 hotel miles from the Mall at Millenia, another Top 10 U.S. National is slated to provide a built-in customer rooms and connects Grand National to the 2nd Retail Asset, LongHorn Steakhouse is in one of the base from the planned TownePlace Suites by largest convention center in the United States— best performing retail submarkets in America. Mall Marriott (160 rooms) plus potential for apartments the Orange County Convention Center (1.4 million at Millenia attracts the most affluent domestic and and additional commercial uses. annual visitors). international shoppers. INSTITUTIONAL TRADE AREA – The Millenia/North I-Drive trade area has I-4 ULTIMATE PROJECT & EXPRESS LANES – The $2.3 billion, 21-mile rebuild attracted significant institutional and ultra-high net worth investment due to of Interstate 4 is adding express lanes, two in each direction, to the center of immense traffic generators, central location, renewed infrastructure, and growing I-4. Grand National Drive will be an entry and exit point for express lane traffic, population. Since 2018, investors have poured over half a billion dollars into generating a new influx of tourists and residents from Greater Orlando into commercial real estate within 2.5 miles of Grand National, including acquisitions Grand National as a result of smoother travel. Scheduled completion is 2021. by Blackstone, Starwood, Barings, Walt Disney, and Comcast. ACTUAL LOCATION | LONGHORN STEAKHOUSE | ORLANDO | FLORIDA INVestment Summary 5 · · · NORTHEAST VIEW MALL AT MILLENIA DowntownDowntown OrlandoOrlando Prior to 2002, The Florida Mall, which was anchored by Saks Fifth Avenue, Nordstrom, Dillard’s and Macy’s, was the primary tourist 666 Miles MilesMiles6 shopping destination. However in 2002, the 1.2 million square foot Mall at Millenia opened, which is anchored by Bloomingdale’s, Neiman-Marcus, and Macy’s. Because of easier access for tourists via Interstate 4, compared to The Florida Mall, the Mall at Millenia has become the preferred mall for tourists. Additionally, the Mall at Millenia is one of the top 10 performing Malls in the United States with sales estimated at $1,400+ per square foot. Further, over the last few years, Saks Fifth Avenue and Nordstrom have both closed at the Florida Mall, further reinforcing the Mall at Millenia’s dominant stature for high-end shopping. BUILT IN 2018 119,000 VPD Interstate 4 172,000 VPD I-4 Express Lane Ramps - Under Construction Oak Ridge Road 25,000 VPD “OVER 130,000 PEOPLE VISIT, WORK, OR LIVE WITHIN 6-MINUTES OF THE SUBJECT PROPERTY EVERY DAY.” ORLANDO INTERNATIONAL PREMIUM OUTLETS DRIVETIME TRAFFIC GENERATOR PER DAY ANNUAL VISITORS The Orlando International Premium Outlets have previously been reported as a Top 10 U.S. Retail Asset based on sales around $1,000 1 MINUTE ORLANDO INTERNATIONAL PREMIUM OUTLETS 46,575 17,000,000 PSF. The Outlets opened in 2008 and were subsequently sold to Simon Property Group in 2010. Today, featuring Coach, Tory Burch, Saks Fifth Avenue O Fifth, and other premium stores and brands, it is one of the most successful retail projects in the world.