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e x c l u s i v e ly l i s t e d b yJ a k e S e I J a sAssociate

Jake.Sei jas@matthews.comDIR (310) 919-5776MOB (415) 847-0566LIC # 01974332

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E X E C U T I V E S U M M A RY

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T I F FA N Y R U Z I C K ABROKER OF RECORD

LIC # SP00226115

C a lv i n S h o r t

FVP & Senior Director

Calvin.Short@matthews.comDIR (949) 432-4506MOB (310) 567-3525LIC # 01927216

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Corporate Church’s Chicken Lease

• +7.50 years remaining on an absolute NNN lease

• ZERO landlord responsibilities

• Annual 1.50% increases, with next increase in December 2017

• Two 10-year options to extend the lease with the same annual increase structure

• Proven tenant with over 60 years of experience in the QSR Industry

• Low price point and attractive CAP rate

• Remodeled in June 2016

• Above average store sales

• Very low rent to sales ratio

LOCATION

• Topeka is the capital city of Kansas

• Over 125,000 residents within a 5-mile radius of this property

• Less than 10 minutes from Kansas State Capitol Building and Downtown Topeka

• Topeka is home to the corporate headquarters of Payless ShoeSource

• Nearby tenants include Aldi, Dollar Tree, Advanced Auto Parts, Taco Bell & GNC

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F I N A N C I A L O V E R V I E W

C h u r c h ' s C h i c k e n201 SE 29th StTopeka, KS 66605

List Price .................................................................................................................... $750,000

CAP Rate - Current ..........................................................................................................6.38%

Gross Leasable Area .............................................................................................. ± 1,326 SF

Lot Size ................................................................................................................... ± .30 Acres

Year Built ...............................................................................................................................1975

Annualized Operating DataMonthly Rent Annual Rent Rent/SF CAP

Current - 12/28/2017 $3,985.39 $47,824.68 $36.07 6.38%

12/29/2017 - 12/28/2018 $4,045.17 $48,542.05 $36.61 6.47%

12/29/2018 - 12/28/2019 $4,105.85 $49,270.18 $37.16 6.57%

12/29/2019 - 12/28/2020 $4,167.44 $50,009.23 $37.71 6.67%

12/29/2020 - 12/28/2021 $4,229.95 $50,759.37 $38.28 6.77%

12/29/2021 - 12/28/2022 $4,293.40 $51,520.76 $38.85 6.87%

12/29/2022 - 12/28/2023 $4,357.80 $52,293.57 $39.44 6.97%

12/29/2023 - 12/28/2024 $4,423.16 $53,077.98 $40.03 7.08%

Tenant Summary

Tenant Trade Name Church's Chicken

Type of Ownership Fee Simple

Lease Guarantor Corporate

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 18 Years

Lease Commencment 4/1/2007

Rent Commencemnt 4/1/2007

Lease Expiration Date 12/28/2024

Term Remaining ± 7.75 years

Increases 1.50% annual increases

Options Two (2), Ten (10) year options

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Property Name Church’s Chicken

Ownership Private

Parent Company Trade Name Friedman Fleischer & Lowe

Ownership Private

No. of Locations ± 1,700

Year Founded 1952

Headquartered Sandy Springs, GA

Website www.churchs.com

CHURCH’S CHICKEN

For more than 60 years, Church’s Chicken has been one of the largest quick service restaurant chicken chains in the world. Founded in Texas by George W. Church, Sr., in 1952, Church’s Chicken is now an international brand and one of the fastest growing chicken franchises worldwide. In addition to its famous fried chicken, Church’s offers a diverse menu that includes chicken wings and sandwiches as well as fried okra and jalapeño cheese bombers as side dishes. A big hit with customers is Church’s unique Honey Butter Biscuits, which are hand-made from scratch. With their dedication to providing affordable and flavorful home-style chicken meals in a business model proven to be efficient and profitable, Church’s Chicken offers highly attractive franchise opportunities for entrepreneurs.

CHRUCH’S EXPANSION

Church’s chicken is about to undergo a large-scale domestic 10-year expansion. Some of the new markets slated for this expansion include multiple restaurants in the Nashville, Knoxville, and Chattanooga areas with another 10-restaurant deal expected to follow in 2021. Leaders have estimated that the real estate construction and design value will be more than a $40 million investment. In 2017, Church’s Chicken is also looking to expand about 80-100 units in the international market. Church’s Chicken is also looking at more non-traditional locations such as airports, bus stops, and malls.

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t h e o f f e r i n g

Property Name Church’s Chicken

Property Address201 SE 29th St,

Topeka, KS 66605

Assessor’s Parcel Number 134-18-0-10-02-007.00

Site DescriptionNumber of stories One

Year built 1975

GLA ± 1,326 SF

Lot (Acres) ±0.30

Type of Ownership Fee Simple

Number of Stories One

Parking ±18 Free Surface Spaces

Oceanside Blvd ± 31,792

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Topeka is the capital city of the U.S. state of Kansas. Being the state’s capital city, Topeka’s largest employer is the State of Kansas—employing about 8,400 people, or 69% of the city’s government workers. The city is also an agricultural, industrial and transportation center serving a large portion of north and central Kansas. A few years ago, citizens voted to extend a 12-year half-cent sales tax designated for economic development, roads and bridges. Each year the sales tax funds provide $5 million designated for business development job creation incentives, and $9 million for roads and bridges. Plans to redevelop areas along the Kansas River are being put into effect as well as renovations in the downtown area.

T o p e k a , K a n s a s

TOPEKA DEMOGRAPHICS

POPULATION 3 Mile 5 Mile 10 Mile

2022 Projection 67,313 126,055 170,133

2017 Estimate 66,940 125,611 168,618

2011 Census 67,106 126,340 167,935

2001 Census 65,574 123,866 159,598

Growth 2017 - 2022 0.56% 0.35% 0.90%

HOUSEHOLDS 3 Mile 5 Mile 10 Mile

2022 Projection 27,767 53,565 69,951

2017 Estimate 27,545 53,252 69,287

Growth 2017 - 2022 0.81% 0.59% 0.96%

INCOME 3 Mile 5 Mile 10 Mile

2017 Est. Average Household Income

$57,428 $62,381 $68,761

A R E A O V E R V I E W

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T o p T o u r i s t S i g h t s

Brown v. Board of Education National Historic Site was established in Topeka, Kansas, on October 26, 1992, by the United States Congress to commemorate the landmark U.S. Supreme Court decision aimed at ending racial segregation in public schools.

BROWN V BOARD OF EDUCATION NATIONAL HISTORIC SITE

Kansas Museum of History in Topeka is the state history museum that presents Kansas history from the prehistoric to modern eras. The museum’s main gallery and changing exhibits have won numerous Awards of Merit.

KANSAS MUSEUM OF HISTORY

Old Prairie Town at Ward-Meade Historic Site is an open-air museum, park and historic site located in Topeka which includes a 2.5 acres botanical garden, restored 1874 Ward-Meade Mansion, the replica of the Ward’s Cabin, and a developing town square called “Prairie Crossings Town Square.

OLD PRAIRIE TOWN AT WARD-MEADE HISTORIC SITE

The Kansas State Capitol is the building which houses the executive and legislative branches of the government for the U.S. State of Kansas. It is one of the lesser few capitols in the country that continue to offer tours.

KANSAS STATE CAPITOL

WA S H B U R N U N I V E R S I T YWashburn University is 160-acre a public institution in the center of Topeka, Kansas. The university provides excellent liberal arts and professional education to over 7,000 students.

The university provides several benefits to the community such as improved heath and reduced welfare, unemployment and crime, saving the public close to $8.5 million every year.

The net added income generated by the operations of the university and spending of visitors and non-local students contributes to a total of $56.9 million in income to the Northeast Kansas economy every year.

Additionally, Washburn alumni have contributed to $422.7 million in added regional income over the past 30 years due to the higher earnings of students and increased output of business.

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Church’s Chicken located at 201 SE 29th Street, Topeka, KS (“Property”) . I t has been prepared by Matthews Real Estate Investment Services. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Real Estate Investment Services. . The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Real Estate Investment Services. expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Real Estate Investment Services. or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T

C h u r c h ’ s C h i c k e n , To p e k a K S | 1 3

e x c l u s i v e ly l i s t e d b y

Church’s Chicken2 0 1 S E 2 9 t h S t | To p e k a , K S

™

J a k e S e I J a sAssociate

Jake.Sei jas@matthews.comDIR (310) 919-5776MOB (415) 847-0566LIC # 01974332

T I F FA N Y R U Z I C K ABROKER OF RECORD

LIC # SP00226115

C a lv i n S h o r t

FVP & Senior Director

Calvin.Short@matthews.comDIR (949) 432-4506MOB (310) 567-3525LIC # 01927216