MOD Pizza LEWISTON, IDAHO HIGH PERFORMING LOCATION WITH FRONTAGE ON MAIN ARTERIAL Overview MOD Pizza 600 21ST STREET LEWISTON, ID 83501 PAGE 5 Investment Summary LEASEABLE SF LAND AREA LEASE TYPE 3,287 SF 38,028 SF NNN LEASE EXPIRATION YEAR BUILT/REMODELED PARKING 12/31/2027 2001/2017 31 Spaces; 9.4/1,000 SF $2,380,000 5.25% PRICE CAP THE OFFERING provides the opportunity to purchase a freestanding corporate MOD Pizza in Lewiston, Idaho. The single-tenant property was completely renovated to suit the new MOD location, that opened in 2017. Located along the main commercial corridor in Lewiston, the strong performing property benefits from excellent exposure to all traffic entering the city from the north on Highway 12. Overview Investment Highlights The highlights BUILD-TO-SUIT RENOVATION FOR CORPORATE MOD PIZZA, WITH 2017 OPENING. HIGH PERFORMING LOCATION - PLEASE CONTACT CAPITAL PACIFIC FOR MORE DETAILS. CORPORATE GUARANTEED LEASE. MOD PIZZA IS REGARDED AS THE FASTEST GROWING RESTAURANT IN AMERICA. PAGE 7 OCCUPIED BY THE FASTEST GROWING RESTAURANT IN USA 8.5-YEAR NNN LEASE TERM PROVIDES MINIMAL MANAGEMENT RESPONSIBILITY. THE CORNER LOCATION ALONG 21ST STREET BENEFITS FROM EXCELLENT VISIBILITY FROM THE MAIN THOROUGHFARE IN LEWISTON. HIGH QUALITY CONSTRUCTION WITH MODERN AESTHETIC AND IN-DEMAND PATIO SEATING AREA. Investment Highlights About the Tenant MOD PIZZA MOD PIZZA WAS ESTABLISHED IN 2008 in Seattle, Washington by co- founders Scott and Ally Svenson. The Svensons previously founded Seattle Coffee Company, a successful UK-based coffee company that sold to Starbucks in 1998. Afterwards Scott stayed on as President of Starbucks Europe. In 2015, MOD Pizza raised $40 million in new funding for a total of $70 million in investment capital to fund an aggressive national growth strategy, and an additional $160 million in 2019. MOD’s growth is also accelerated by the addition of several franchise partnerships. Lewiston Bellevue, WA CORPORATE LOCATION HEADQUARTERS LOCATION 2008 $398M YEAR TOTAL FOUNDED 2018 SALES 433 100+ LOCATIONS NEW LOCATIONS ACROSS THE ADDED ANNUALLY US AND UK 2017-2018 PAGE 9 MOD PIZZA IS THE FASTEST GROWING RESTAURANT IN AMERICA 2015-2018 by Technomic, Top 500 Restaurant Report. About the Tenant Site IDAHO BEVERAGES 20,000 VPD 12 MAIN STREET 12 G STREET MOD PIZZA IDAHO STREET WRANGLER BAR & GRILL 21ST STREET WHITMAN ELEMENTARY SCHOOL JENIFER JUNIOR HIGH SCHOOL PAGE 11 LOCATED APPROXIMATELY ONE MILE FROM LEWIS-CLARK STATE COLLEGE Site Surrounding Retail Business summary TOTAL 1-MILE 3-MILES 5-MILES Businesses 1,362 4,873 5,757 Employees 11,141 45,520 54,311 Population 7,502 73,018 98,492 KEY 1-MILE 3-MILES 5-MILES MAJOR RETAIL Aaron’s Little Caesar’s Sportsman’s Warehouse Applebee’s O’Reilly Staples Autozone Petco Starbucks Big 5 Sporting Goods Pier 1 Imports Subway Cash & Carry Pizza Hut Taco Bell Dollar Tree Red Lobster TJ Maxx Famous Footwear Ross Dress for Less Walgreens Harbor Freight Tools Sears Hometown Wendy’s Home Depot Shopko Kmart Snap Fitness LEWISTON CENTER MALL GNC Maurice’s Bath & Body Works Great Clips Rite Aid Big Lots! JCPenney Winco Macy’s PAGE 13 20,000 12 MAIN STREET VPD CLEARWATER RIVER MOD PIZZA 21ST STREET 21ST LEWISTON CENTER MALL Surrounding Retail Site Plan 3,287 LEASEABLE SF IDAHO STREET 21ST STREET 21ST 0.87 ACRES 31 SPACES; 9.4/1,000 SF PAGE 15 PATIO RPL1670013007 SEATING RPL1670013001A RPL16700130060 RPL16700130050 RPL1670013003A SITE PLAN NOT TO SCALE PYLON SIGN Site Plan Income & Expense Financial Summary PRICE $2,380,000 CAPITALIZATION RATE 5.25% CASH FLOW SUMMARY SCHEDULED INCOME Base Rent for the Period of: 10/1/2019 - 9/30/2020 $124,906 Total Effective Gross Income (EGI) $124,906 OPERATING EXPENSES CAMS NNN Property Taxes NNN Insurance NNN Total Operating Expenses NNN NET OPERATING INCOME $124,906 6/18/2019 [ <www.CapitalPacific.com> ] NNN LEASE PROVIDES MINIMAL LANDLORD RESPONSIBILITY 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. Buyer must verify the information and bears all risk for any inaccuracies. PAGE 17 Rent Rent Roll Roll MOD Pizza Lease Term: 12/2/2017 - 12/31/2027 Size (SF): 3,287 RENT SUMMARY MONTHLY ANNUAL DATE % INCREASE CAP RATE BASE RENT RENT 12/2/2017 $10,409 $124,906 5.25% 1/1/2023 $11,450 10% $137,397 5.77% OPTIONS 2, 5-Yr 10% Rent Bumps 180-Day Notice 1 1/1/2028 $12,600 10% $151,202 6.35% 2 1/1/2033 $13,860 10% $166,322 6.99% CURRENT $10,409 $124,906 5.25% Lease Notes Comments: NNN Lease. CAM expenses (excludes taxes, insurance, and utilities as Tenant pays those directly), are capped at a 5% increase annually, following Year 1; Tenant not currently hitting cap. Year 1 NNN not to exceed $6.50/SF. Tenant pays Management based on 5% of CAM. Landlord is responsible for the roof, building structure, foundation, and HVAC/sprinkler system replacement. Tenant to provide annual financial statements upon request. 6/18/2019 [ <www.CapitalPacific.com> ] Financial Summary Lease Abstract Premise & Term TENANT MOD Super Fast Pizza, LLC BUILDING SF 3,287 SF LEASE TYPE NNN LEASE COMMENCEMENT December 2, 2017 EXPIRATION December 31, 2027 OPTIONS 2, 5-YR Options; 180 days prior to expiration Rent 10% rent increases every 5 years DATE RANGE MONTHLY RENT ANNUAL RENT Years 1-5 $10,408.83 $124,906 Years 6-10 $11,449.72 $137,396 OPTIONS 2, 5-year options with 10% increases Misc. TENANT FINANCIALS Promptly furnish Landlord, upon Landlord’s request, financial statements accurately reflecting Tenant’s then current financial condition, which request shall not be made more often than on an annual basis. PAGE 19 Expenses TAXES Tenant to reimburse Property Taxes to Landlord. INSURANCE Tenant to reimburse Landlord’s insurance. UTILITIES Tenant is responsible for direct payment of all utilities. CAM Tenant to reimburse Landlord’s expense for exterior maintenance and repair, including those pertaining to landscaping and the parking lot. CAM to include a management fee based on 5% of controllable CAM. Tenant shall reimburse Landlord for roof replacement and parking lot resurfacing costs, amortized. CAM (excludes insurance, taxes, and utilities) are capped at a 5% increase annually. Maintenance & Repair TENANT’S OBLIGATIONS Tenant is directly responsible for all interior maintenance and repair, including HVAC preventive maintenance servicing, utility systems, and doors/windows. LANDLORD’S OBLIGATIONS Landlord is responsible for the repair, maintenance, and replacement of the building roof, structure, and foundation. Responsibilities include HVAC replacement. Lease Abstract Featured Photography PAGE 21 Featured Photography Construction Details PATIO 650 square foot pergola covered patio with seating. ELECTRICAL / PLUMBING SIDING MATERIALS ELECTRICAL: 400 amp 3-phase A modern mix of cultured stone panel with all new wiring and veneer, cedar siding, fiber cement fixtures throughout. panels and a steel and wood PLUMBING: Two (2) restrooms guardrail surrounding the patio. total four toilets and two sinks. One service sink and one drinking FIRE PROTECTION fountain. A new wet sprinkler system. HVAC Two (2) new roof top units. PAGE 23 STOREFRONTS Aluminum glazed framing with tempered glass including one rollup door to the patio. ROOF TPO Membrane roof. FOUNDATION Construction kept the existing slab on grade. LANDSCAPING A mix of deciduous and coniferous trees and shrubs and ornamental grasses line the exterior of the Property and flank the patio and storefront. Exterior improvements also include new sidewalk, asphalt and pavers. PARKING 31 total spaces, 2 handicap spaces; 9.4/1,000 SF. Construction Details Questions & Answers Q: IS THIS A FRANCHISE LOCATION OF MOD PIZZA? A: No, this is a corporate location and one of only a few freestanding locations. Q: HOW MUCH OF THE PROPERTY HAS BEEN GRANTED TO THE CITY OF LEWISTON FOR PUBLIC RIGHT-OF-WAY? A: 670 square feet or less has been dedicated to the city on the borders of the Property. PAGE 25 Q & A Q: IS TENANT REQUIRED TO REPORT SALES? A: Tenant is required to report sales at Landlord’s request not to exceed once per annum. Please contact David Gellner at Capital Pacific for more information regarding tenant sales. Questions & Answers Location Lewiston, Idaho LEWISTON is the second largest city in northern Idaho, behind Coeur d’Alene, and is the ninth largest in the state. Lewiston is located at the confluence of the Snake River and Clearwater River, thirty miles southeast of the Lower Granite Dam. The city is reachable by ocean-going vessels and the Port of Lewiston is the farthest inland port east of the West Coast and Idaho’s only seaport. Lewiston is also home to Lewis and Clark State College. The college has an annual enrollment of 4,000 and offers more than 83 undergraduate degrees. THE CITY’S MAIN INDUSTRIES ARE AGRICULTURE, PAPER AND TIMBER PRODUCTS, and light manufacturing Industry with a focus on ammunition, small firearms and boats. Lewiston is home to Lewis-Clark State College, a public undergraduate college with approximately 5,000 students. PAGE 27 Labor Force THE LEWISTON LABOR FORCE HAS A GREAT REPUTATION FOR ITS WORK ETHIC. The Lewiston MSA is made up of Nez Perce County and Asotin County (whose largest city is Lewiston’s sister city, Clarkston) in Washington. They have a combined labor force of 31,600. As well as drawing workers from the two counties, the Lewiston labor market also draws workers from Clearwater, Latah, Lewis, and Idaho Counties, which have an additional labor force of 26,600. Drive time POPULATION 5 MINS 10 MINS 15 MINS 2010 7,826 32,900 51,046 2018 8,138 33,836 52,607 2023 8,339 34,516 53,727 2018 HH INCOME 5 MINS 10 MINS 15 MINS KEY Average $60,224 $58,635 $64,992 5 MINS 10 MINS 15 MINS Median $49,353 $46,903 $51,581 Location Contact Us We’d love to hear from you.