For further information, please contact:

Bryan CifranicDirect Line: 559/ 650.1316 bcifranic@retailassociates.com BRE License #01809130

Nathan NegriDirect Line: 559/ 650.1317 nnegri@retailassociates.com BRE License #01905421

offering memorandumNET LEASED INVESTMENT

arvada (denver) colorado

FOR SALE

Colorado Licensed Broker of Record:

Leuthold Commercial PropertiesLIC # EC40032554 (CO)

I N V E S T M E N T O V E R V I E WPROPERTY SUMMARY:

TENANT: McDonald’s USA, LLCLOCATION: 14825 West 64th Avenue Arvada, CO 80007STORE TYPE: Free-Standing Building w/Double Drive-ThruBUILDING SIZE: ±3,870 SF LAND SIZE: ±1.74 AcresYEAR BUILT: 2008

RENT SCHEDULE:

PRIMARY TERM: $90,750.00¹ Annually (August 1, 2018 - July 31, 2022)

TENANT: McDonald’s USA, LLC, a Delaware limited liability company

OFFERING TERMS:

OFFERING PRICE: $2,065,000

CAP RATE: 4.25%

NET OPERATING INCOME: $87,750²

LEASE SUMMARY:

¹ Rent reflects the schedule rent increase to occur on August 1, 2018. The listing price and cap rate are reflective of the scheduled rent increase and Seller shall credit the Buyer the monetary rent difference between the Current Rent and Scheduled Rent beginning from the Close of Escrow date until the Schedule Rent increase date of August 1, 2018.

² The net operating income reflects a $3,000 deduction to the annual rental income to offset shopping center common area maintenance expenses not fully reimbursed by McDonald’s. The actual non-recoverable expenses in calendar year 2017 for the subject parcel were $2,688, the underwriting of $3,000 estimated per year was padded for cost fluctuation (primarily snow removal and utility costs). However the non-recoverable cost allocations to the shopping center parcels should be decreasing upon the completion of the final shopping center development parcel (now under construction) once that parcel begins contributing to the common area maintenance expense pool. Contact the listing agent for additional details.

OPTION RENT: Option #1 - 10% Fixed Rent Increase Option #2 - 10% Fixed Rent Increase Option #3 - 10% Fixed Rent Increase Option #4 - 10% Fixed Rent Increase Option #5 - 10% Fixed Rent Increase Option #6 - 10% Fixed Rent Increase Option #7 - 10% Fixed Rent Increase Option #8 - 10% Fixed Rent Increase

LEASE TERM: 10.5 Years Remaining August 22, 2008 - August 31, 2028OPTION TERMS: Eight (8) Periods of Five (5) years Each

TENANT ROFR: Yes, Thirty (30) Days

ESTOPPEL: Twenty (20) Business Days

LEASE TYPE: Ground Lease

$99,825.00 Annually (10% Increase) (August 1, 2023 - July 31, 2028)

Investment Grade TenantMcDonald’s has a Standard & Poor’s Credit Rating of BBB+ (Stable)

Pride of Ownership PropertyNewer 2008 Prototype Construction with Double Drive-Thru and Partof the Well Maintained Indiana Marketplace Shopping Center

Passive InvestmentCoporate Ground Lease with McDonald’s USA

High Visibility and AccessibilitySituated near the Signalized Intersection of West 64th Avenue andIndiana Street with More than 46,000 Average Cars Per Day

Affluent Demographics$159,000 Average Household Income and High Population Growthof 25% from 2000-2016 with Continued Growth Predicted

Part of the Denver Metropolitan Statistical AreaLocated only 12 Miles from Downtown Denver and includes Nearly 2.7 Million People in the Denver MSA. Ranked #1 “Best Places to Live in the USA” by U.S. News & World Report

I N V E S T M E N T H I G H L I G H T S

P R O P E R T Y I M A G E S

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

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

P R O P E R T Y S I T E P L A N

*Site Plan Not to Scale

T E N A N T P R O F I L E

MCDONALD’S CORPORATION (NYSE: MCD) McDonald’s Corporation (McDonald’s), was incorporated on December 21, 1964 and operates and franchises McDonald’s restaurants. Back in 1954, a man named Ray Kroc discovered a small burger restaurant in California and wrote the first page of McDonald’s history. From humble beginnings as a small restaurant, they have now become one of the world’s leading food service brands with more than 36,000 restaurants in more than 100 countries. The Company’s restaurants serve a locally relevant menu of food and drinks sold at various price points in over 100 countries. The Company’s segments include U.S., International Lead Markets, High Growth Markets and Foundational Markets and Corporate. McDonald’s franchised restaurants are owned and operated under various structures, including conventional franchise, developmental license or affiliate. The Company is primarily a franchisor. Under a conventional franchise arrangement, the Company owns the land and building or secures a long-term lease for the restaurant location and the franchisee pays for equipment, signs, seating and decor. The U.S. segment focuses on offering a platform for authentic ingredients that allows customers to customize their sandwiches. Its High Growth Markets segment includes its operations in markets, such as China, Italy, Korea, Poland, Russia, Spain, Switzerland, the Netherlands and related markets. The International Lead markets segment includes the Company’s operations in various markets, such as Australia, Canada, France, Germany, the United Kingdom and related markets. McDonald’s High Growth markets are focused on creating customer excitement through menu, promotions and value, and implementing a digital strategy with specific mobile solutions and actions. The Foundational markets and Corporate segment is engaged in operating restaurants and increasing convenience to customers, including through drive-thru and delivery. McDonald’s menu includes hamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, wraps, French fries, salads, oatmeal, shakes, McFlurry desserts, sundaes, soft serve cones, pies, soft drinks, coffee, McCafe beverages and other beverages. In addition, the restaurants sell a range of other products during limited-time promotions. McDonald’s restaurants in the United States and many international markets offer a full or limited breakfast menu. Breakfast offerings may include Egg McMuffin, Sausage McMuffin with Egg, McGriddles, biscuit and bagel sandwiches, and hotcakes.

For more information, visit www.mcdonalds.com

S&P CREDIT RATING: BBB+ (STABLE) MOODY’S CREDIT RATING: Baa1 (STABLE)# OF LOCATIONS: ±36,000 in More than 100 Countries ±75,717 SF / ±1.74 Acres

A R V A D A ( D E N V E R )

D E M O G R A P H I C S

POPULATIONEstimated Population (2017)

Projected Population (2022)

Census Population (2010)

Census Population (2000)

Projected Annual Growth (2017-2022)

Historical Annual Growth (2010-2017)

Historical Annual Growth (2000-2010)

Estimated Population Density

HOUSEHOLDSEstimated Households (2017)

Projected Households (2022)

Census Households (2010)

Census Households (2000)

Estimated Households with Children

Estimated Average Household Size

1-MILE9,038

9,532

7,912

7,074

494 (1.1%)

1,126 (2.0%)

828 (1.2%)

2,878 psm

3,301

3,457

2,956

2,418

1,134 (34.3%)

2.70

3-MILE57,938

61,112

52,402

45,453

3,174 (1.1%)

5,536 (1.5%)

6,949 (1.5%)

2,050 psm

21,759

22,775

20,091

16,565

7,020 (32.3%)

2.64

5-MILE143,675

151,844

127,823

123,057

8,169 (1.1%)

15,852 (1.8%)

4,766 (0.4%)

1,830 psm

57,647

60,486

52,697

48,214

16,561 (28.7%)

2.46

INCOMEEst. Avg. Household Income (2017)

Proj. Avg. Household Income (2022)

Est. Avg. Family Income (2017)

Est. Med. Household Income (2017)

Proj. Med. Household Income (2022)

Est. Med. Family Income (2017)

AGEEstimated Median Age

RACEWhite

Black or African American

American Indian/Alaska Native

Asian

Other Race

Two or More Races

Not Hispanic or Latio Pop.

Hispanic or Latine Pop.

1-MILE$159,382

$194,994

$173,974

$110,817

$129,697

$126,507

43.4

8,432 (93.3%)

38 (0.4%)

28 (0.3%)

264 (2.9%)

110 (1.2%)

163 (1.8%)

8,437 (93.4%)

601 (6.6%)

3-MILE$150,521

$182,922

$166,411

$111,968

$130,802

$126,752

42.3

53,593 (92.5%)

411 (0.7%)

258 (0.4%)

1,409 (2.4%)

1,030 (1.8%)

1,209 (2.1%)

53,003 (91.5%)

4,935 (8.5%)

5-MILE$136,944

$164,712

$153,763

$104,385

$121,759

$120,798

42.0

129,699 (90.3%)

1,471 (1.0%)

969 (0.7%)

3,314 (2.3%)

4,312 (3.0%)

3,825 (2.7%)

126,668 (88.2%)

17,007 (11.8%)

Source: REGIS Online, 2017

The information contained herein does not purport to provide a omplete or fully accurate summary of the Property or any of the documents related thereto,

nor does it purport to be all-inclusive or to contain all of the information which prospective buyers may need or desire. All financial projections are based on

assumptions relating to the general economy, competition, and other factors beyond the control of the Owner and Broker and, therefore, are subject to material

variations. This Offering Memorandum does not constitute an indication that there has been no change in the business or affairs of the Property or the Owner

since the date of preparation of the information herein. Additional information and an opportunity to inspect the Property will be made available to interested

and qualified prospective buyers.

Neither Owner nor Broker nor any of their respective officers, Agents or principals has made or will make any representations or warranties, express or implied,

as to the accurracy or completeness of this Offering Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of the

Offering Memorandum or its contents. Analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the

prospective buyer, with the Property to be sold on as-is, where-is basis without any representations as to the physical, financial or environmental condition of

the Property.

Owner and Broker expressly reserve the right, at their sole discretion, to reject any or all expressions of interests or offers to purchase the Property and/or

terminate discussions with any entity at any time with or without notice. Owner has no legal commitment or obligations to any entity reviewing this Offering

Memorandum or making an offer to purchase the Property unless and until such sale of the Property is approved by Owner in its sole discretion, a written

agreement for purchase of the Property has been fully delivered, and approved by Owner, its legal counsel and any conditions to the Owner’s obligations

thereunder have been satisfied or waived.

This Offering Memorandum and its contents, except such information which is matter of public record or is provided in sources available to the public (such

contents as so limited herein called the Contents), are of a confidential nature. By accepting this Offering Memorandum, you unconditionally agree that you will

hold and treat the Offering Memorandum and the Contents in the strictest confidence, that you will not photocopy or duplicate the Offering Memorandum or

any part thereof, that you will not disclose the Offering Memorandum or any of its Contents to any other entity (except in the case of a principal, who shall be

premitted to disclose to your employees, contractors, investors and outside advisors retained by you, or to third-party institutional lenders for financing sought

by you, if necessary, in your opinion, to assist in your determination of whether or not to make a proposal) without the prior authorization of the Owner or

Broker, and that you will not use the Offering Memorandum or any of the Contents in any fashion or manner detrimental to the interest of the Owner or Broker.

C O N F I D E N T I A L I T Y A G R E E M E N T

NET LEASED INVESTMENTarvada (denver) colorado

For further information, please contact:

Bryan CifranicDirect Line: 559/ 650.1316 bcifranic@retailassociates.com BRE License #01809130

Nathan NegriDirect Line: 559/ 650.1317 nnegri@retailassociates.com BRE License #01905421

Colorado Licensed Broker of Record:

Leuthold Commercial PropertiesLIC # EC40032554 (CO)