GOLDEN CHICK BRAND NEW 20 - YEAR TRIPLE - NET (NNN) SALE LEASEBACK OFFERING 11805 E NW Hwy MEMORANDUM Dallas, TX 75218 Confidentiality and Disclaimer Marcus & Millichap hereby advises all prospective locations is an important consideration, it is not a thorough due diligence investigation. Marcus & Millichap purchasers of Net Leased property as follows: guarantee of future success. Similarly, the lease rate for has not made any investigation, and makes no warranty or some properties, including newly-constructed facilities or representation, with respect to the income or expenses The information contained in this Marketing Brochure has newly-acquired locations, may be set based on a tenant’s for the subject property, the future projected financial been obtained from sources we believe to be reliable. projected sales with little or no record of actual performance of the property, the size and square footage However, Marcus & Millichap has not and will not verify performance, or comparable rents for the area. Returns of the property and improvements, the presence or any of this information, nor has Marcus & Millichap are not guaranteed; the tenant and any guarantors may absence of contaminating substances, PCB’s or asbestos, conducted any investigation regarding these matters. fail to pay the lease rent or property taxes, or may fail to the compliance with State and Federal regulations, the Marcus & Millichap makes no guarantee, warranty or comply with other material terms of the lease; cash flow physical condition of the improvements thereon, or the representation whatsoever about the accuracy or may be interrupted in part or in whole due to market, financial condition or business prospects of any tenant, or completeness of any information provided. economic, environmental or other conditions. Regardless any tenant’s plans or intentions to continue its occupancy of tenant history and lease guarantees, Buyer is of the subject property. The information contained in this As the Buyer of a net leased property, it is the Buyer’s responsible for conducting his/her own investigation of all Marketing Brochure has been obtained from sources we responsibility to independently confirm the accuracy and matters affecting the intrinsic value of the property and believe to be reliable; however, Marcus & Millichap has completeness of all material information before the value of any long-term lease, including the likelihood not verified, and will not verify, any of the information completing any purchase. This Marketing Brochure is not a of locating a replacement tenant if the current tenant contained herein, nor has Marcus & Millichap conducted substitute for your thorough due diligence investigation of should default or abandon the property, and the lease any investigation regarding these matters and makes no this investment opportunity. Marcus & Millichap expressly terms that Buyer may be able to negotiate with a warranty or representation whatsoever regarding the denies any obligation to conduct a due diligence potential replacement tenant considering the location of accuracy or completeness of the information provided. All examination of this Property for Buyer. the property, and Buyer’s legal ability to make alternate potential buyers must take appropriate measures to verify use of the property. all of the information set forth herein. Any projections, opinions, assumptions or estimates used By accepting this Marketing Brochure you agree to release in this Marketing Brochure are for example only and do Marcus & Millichap Real Estate Investment Services and NON-ENDORSEMENT NOTICE not represent the current or future performance of this hold it harmless from any kind of claim, cost, expense, or property. The value of a net leased property to you liability arising out of your investigation and/or purchase Marcus & Millichap Real Estate Investment Services, Inc. depends on factors that should be evaluated by you and of this net leased property. (“M&M”) is not affiliated with, sponsored by, or endorsed your tax, financial and legal advisors. by any commercial tenant or lessee identified in this CONFIDENTIALITY AND DISCLAIMER marketing package. The presence of any corporation’s Buyer and Buyer’s tax, financial, legal, and construction logo or name is not intended to indicate or imply advisors should conduct a careful, independent The information contained in the following Marketing affiliation with, or sponsorship or endorsement by, said investigation of any net leased property to determine to Brochure is proprietary and strictly confidential. It is corporation of M&M, its affiliates or subsidiaries, or any your satisfaction with the suitability of the property for intended to be reviewed only by the party receiving it agent, product, service, or commercial listing of M&M, your needs. from Marcus & Millichap and should not be made and is solely included for the purpose of providing tenant available to any other person or entity without the written lessee information about this listing to prospective Like all real estate investments, this investment carries consent of Marcus & Millichap. This Marketing Brochure customers. significant risks. Buyer and Buyer’s legal and financial has been prepared to provide summary, unverified advisors must request and carefully review all legal and information to prospective purchasers, and to establish ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. financial documents related to the property and tenant. only a preliminary level of interest in the subject property. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT While the tenant’s past performance at this or other The information contained herein is not a substitute for a FOR MORE DETAILS. Table of Contents Investment Highlights 4 Financial Analysis & Investment Summary 5 Concept Overview 6 Surrounding Area 7 Location Overview 8 Regional Map 9 Property Photos 10 Demographics 11 Representative Photo Investment Highlights LOCATION LEASE TENANT REAL ESTATE L E A S E A B O U T T H E FUNDAMENTALS STRUCTURE GUARANTOR ✓ No Personal Income Tax in Texas ✓ Brand New 20-Year Sale Leaseback ✓ Franchisor Guarantee ✓ Recent Construction | Store Built in ✓ Triple Net (NNN) Lease with Zero ✓ 185 Locations with Significant Plans 2017 Landlord Responsibilities for Expansion ✓ Located “Inside the Loop” with ✓ ✓ Attractive Rental Increases | 1.50% Proven Track Record with Operational Convenient Access to Interstate-635 Annually History of Multiple High-Volume ✓ Strong Retail Corridor | Close Locations throughout the Country Proximity to Big Box Retailers Such as ✓ Four (4) Tenant Renewal Periods of ✓ Expansion into Key Markets Lowe’s, Sam's Club and Fry's Five (5) Years Each Electronics as well as Many Other ✓ In 2017, Golden Chick Celebrated its th National Tenants 50 Anniversary ✓ Robust Demographics | 406,683 Individuals Residing within a Five- Mile Radius with an Average Household Income of Nearly $75,000 ✓ Highly Trafficked Location | 39,515 Vehicles Per Day on East Northwest Highway 4 Financial Analysis & Investment Summary PURCHASE PRICE: $2,072,727 | CAP RATE: 5.50% | RENT: $114,000 PROPERTY DESCRIPTION RENT SCHEDULE Property Golden Chick Lease Year(s) Annual Rent Monthly Rent Rent Escalation Year 1 $114,000 $9,500 - Property Address 11805 E NW Hwy Year 2 $115,710 $9,643 1.50% City, State ZIP Dallas, TX 75218 Year 3 $117,446 $9,787 1.50% Year 4 $119,207 $9,934 1.50% Year Built 2017 Year 5 $120,995 $10,083 1.50% Building Size (SF) 2,415 Year 6 $122,810 $10,234 1.50% Lot Size (Acres) 0.84 Year 7 $124,653 $10,388 1.50% Year 8 $126,522 $10,544 1.50% Type of Ownership Fee Simple Year 9 $128,420 $10,702 1.50% Year 10 $130,346 $10,862 1.50% THE OFFERING Year 11 $132,302 $11,025 1.50% Purchase Price $2,072,727 Year 12 $134,286 $11,191 1.50% CAP Rate 5.50% Year 13 $136,300 $11,358 1.50% Year 14 $138,345 $11,529 1.50% Annual Rent $114,000 Year 15 $140,420 $11,702 1.50% Year 16 $142,526 $11,877 1.50% LEASE SUMMARY Year 17 $144,664 $12,055 1.50% Property Type Net-Leased Restaurant Year 18 $146,834 $12,236 1.50% Tenant G.C. Dallas - NW Highway 2015, Ltd. Year 19 $149,037 $12,420 1.50% Year 20 $151,272 $12,606 1.50% Guarantor Golden Franchising Corp Investment Summary Lease Term 20 Years Marcus & Millichap is pleased to present the exclusive listing for a Golden Lease Commencement Close of Escrow Chick located at 11805 E NW Hwy, Dallas, TX. The property consists of 2,415 Lease Expiration 20 Years from Close of Escrow square feet of building space and is situated on approximately 0.84 acres of land. Lease Term Remaining 20 Years Lease Type Triple Net (NNN) The tenant will enter into a brand new, 20-year triple-net (NNN) lease with absolutely no landlord responsibilities upon the close of escrow. The lease Roof & Structure Tenant Responsible will call for 1.50% annual rental increases that will continue through the Options to Renew Four (4), Five (5) Year Option Periods base term and into the four, five-year tenant renewal options. The lease will carry a corporate guaranty from Golden Franchising Corporation, the chain’s Rental Increases 1.50% Annually franchisor. 5 Concept Overview About Golden Chick Golden Chick is a fast food restaurant chain featuring chicken. The Golden Chick Story began in San Marcos in 1967 when the concept was created by a former employee of a national chicken chain who believed there had to be a better way to run a franchise system. The first restaurant was called Golden Fried Chicken. Franchising started in 1972. A decade later, the franchise grew to a number of restaurants primarily in Central Texas, with a focus on cities like Austin and San Antonio. Eventually it expanded outside to the Dallas-Fort Worth Metroplex, and then crossed the state line into Oklahoma.