KFC3299 Canfield Road – Youngstown, Ohio 44511

OFFERING MEMORANDUM

Table of Contents

Financial OverviewsInvestment Highlights & OverviewDisposition RangeLease Summary

Concept/Tenant Overview

Location OverviewsLocation Highlights & OverviewSurrounding Aerial MapProperty PhotosSurrounding Area Photos

DemographicsPopulation IncomeEmployment

3299 Canfield Road – Youngstown, Ohio 44511PRICE: $1,150,855 | 5.85% CAP | RENT: $67,325

3This 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. References to square footage or age are approximate. Buyer must verify the informationand bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is aservice mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap

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FINANCIAL OVERVIEW

PROPERTY DESCRIPTIONProperty KFCProperty Address 3299 Canfield RoadCity, State, ZIP Youngstown, Ohio 44511Year Built 1978Building Size (SF) 2,197Lot Size (Acres) 0.50 AcresType of Ownership Fee Simple

THE OFFERINGPrice $1,150,855CAP Rate 5.85%Annual Rent $67,325Rent / SF $30.65Price / SF $524

LEASE SUMMARYProperty Name KFCProperty Type Net Leased RestaurantOwnership PrivateTenant / Guarantor 68 Unit Franchisee GuaranteeLease Term 20 YearsLease Commencement Close of EscrowLease Expiration 20 Years from Close of EscrowLease Term Remaining 20 YearsLease Type Triple-Net (NNN)Roof & Structure Tenant ResponsibleOptions to Renew Four, Five-Year OptionsRental Increases 1.25% Starting in Year 6

Brand New 20-Year Triple-Net (NNN) Sale-Leaseback

1.25% Annual Rental Increases Starting in Year 6

Four (4), Five (5)-Year Tenant Renewal Options

68-Unit Franchisee Guarantee from Morgan Foods Inc.

HIGHLIGHTS

4This 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. References to square footage or age are approximate. Buyer must verify the informationand bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is aservice mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap

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FINANCIAL OVERVIEW

Lease Year Annual Rent Monthly RentYears 1 – 5 $67,325 $5,610

Year 6 $68,167 $5,681 Year 7 $69,019 $5,752 Year 8 $69,881 $5,823 Year 9 $70,755 $5,896

Year 10 $71,639 $5,970 Year 11 $72,535 $6,045 Year 12 $73,442 $6,120 Year 13 $74,360 $6,197 Year 14 $75,289 $6,274 Year 15 $76,230 $6,353 Year 16 $77,183 $6,432 Year 17 $78,148 $6,512 Year 18 $79,125 $6,594 Year 19 $80,114 $6,676 Year 20 $81,115 $6,760

CAP Rate 5.85%Purchase Price $1,150,855

INVESTMENT SUMMARY

Marcus & Millichap is pleased to present the exclusive listing for a KFClocated at 3299 Canfield Road in Youngstown, Ohio. Built in 1978, theproperty consists of 2,197 square feet of building space and sits on 0.50 acresof land.

This KFC property is subject to a brand new 20-year triple-net (NNN) sale-leaseback that will commence at the close of escrow. The current rent is$67,325 and is subject to 1.25% annual rental increases beginning in year 6.Additionally, the tenant has four, five-year renewal options. The lease isguaranteed by Morgan Foods Inc., a 68-unit entity.

ANNUALIZED OPERATING DATA

3299 Canfield Road – Youngstown, Ohio 44511PRICE: $1,150,855 | 5.85% CAP | RENT: $67,325

DemographicsTENANT OVERVIEW

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KFC Corporation, based in Louisville, Kentucky, is one of the few brands inAmerica that can boast a rich, decades-long history of success andinnovation. It all started with one cook who created a soon-to-be world-famous recipe more than 70 years ago, a list of secret herbs and spicesscratched out on the back of the door to his kitchen. That cook was ColonelHarland Sanders, of course, and now KFC is the world’s most popularchicken restaurant chain, specializing in that same Original Recipe® alongwith Extra Crispy™ chicken, home-style sides and buttermilk biscuits. Thereare more than 18,000 KFC outlets in 115 countries and territories aroundthe world. And you know what? There’s still a cook in a kitchen in everylast one of them, freshly preparing delicious, complete family meals ataffordable prices.

About KFC:

IT’S MADE THE HARD WAY

Hand breaded, freshly prepared and Finger Lickin’ Good®! Our chicken isn't made the fast way or the easy way.

Then, our fresh chicken is carefully rolled 7 times in our secret blend of 11 herbs & spices before being rocked 7 times and then pressure cooked at a low temperature to preserve all the great taste we’re known for around the world.

We could find an easier way to make chicken, but then we couldn’t put our name on it.

Each fresh batch of the world’s best chicken starts with our cooks inspecting each individual piece.

Ampex Brands was formed in 2005 to acquire 18 Long John Silver’srestaurants, and has since grown tremendously, landing as the 21st largestfranchisee in the US according to The 2015 Mega 99 Rankings. Currently,Ampex owns and operates around 300 units of KFC, Taco Bell, Tim Hortons,Long John Silver’s and A&W in Arkansas, Louisiana, Texas, Oklahoma, Ohio,Pennsylvania, West Virginia, Illinois, New York and Missouri, and employsover 6,000 team members.

AMPEX Brands

Y ou n g s t ow n , O H

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AERIAL3299 Canfield Road – Youngstown, Ohio 44511

Walgreens

Davidson’s Restaurant

KirkmereElementary School

HIGHLIGHTS Active Retail Corridor - Major National Tenants

Include: Walgreens, Rite Aid, Family Dollar, Dollar General, Dairy Queen, Shell, Subway

Limited QSR Competition in the Surrounding Area Dense, Infill Market – 65,015 Within a Three-Mile

Radius Multiple Schools in Close Proximity to the Subject

Property – Total Combined Enrollment of Over 730 Students

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LOCATION OVERVIEWYoungstown, OH

* Based on a 5-mile radius

MAJOR EMPLOYERSEMPLOYER # OF EMPLOYEES *JC Penney Company Inc 5,020

St Elizabeth Health Center 2,500

Youngstown Mega Data Center 1,360

Forge Industries Inc 1,250

William F Maag Jr Library 1,156

Talmer Bancorp Inc 878

Wic Program 807

Blue Cross and Blue Shield 620

Walmart 600

US Post Office 534

JC Penney 470

McDonalds 456

ADTC 10,947

ADTC 21,214

ADTC 34,813

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LOCATION OVERVIEWThis KFC property is located at 3299 Canfield Road in Youngstown, Ohio. The city is inand is the county seat of Mahoning County. Located on the Mahoning River,Youngstown is approximately 65 miles southeast of Cleveland and 61 miles northwestof Pittsburgh. Youngstown lies 10 miles west of the Pennsylvania state line, midwaybetween New York City and Chicago via Interstate 80.

Surrounding Retail and Points of InterestThe subject property is well-positioned in Cornersburg neighborhood of Youngstown,surrounded by multiple national and regional retailers. Tenants in the surrounding areainclude: Walgreens, Rite Aid, Family Dollar, Dollar General, Dairy Queen, Subway,Farmers National Bank, Chemical Bank, Express Gas, State Farm, Marlowe’s PremiumCoffee, Komara Jewelers, RPM Motors, Sparkle Supermarkets, and Good NeighborPharmacy, as well as many others. Multiple schools are in close proximity to the subjectproperty including: Kirkmere Elementary School, St. Christine School, and Zion ChristianEarly Learning Center. The schools have a combined total enrollment of over 730students.

Traffic Counts and DemographicsThere are approximately 65,015 people within a three-mile radius of this property and135,018 within a five-mile radius. The property is situated on Canfield Road directly offof Tippecanoe Road, which has an average daily traffic count of 10,947 vehicles. Thesubject property also benefits from nearby Ohio State Route 11 and U.S. Interstate 76which have average traffic counts of 21,214 and 34-813 vehicles per day, respectively.

Youngstown, PennsylvaniaYoungstown is the site of several steel and metalworking operations, but the largestemployer in the city is Youngstown State University (YSU), an urban public campus thatserves about 15,000 students, located just north of downtown. Youngstown'sdowntown, which once underscored the community's economic difficulties, is a site ofnew business growth. The Youngstown Business Incubator (YBI), in the heart of thedowntown, houses several start-up technology companies that have received officespace, furnishings, and access to utilities.

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PROPERTY PHOTO

OVERVIEWYOUNGSTOWN

FAMILY FRIENDLYA desirable quality of life attracts many families. Draws include Youngstown’s collection of four- and five-star rated schools.

ACHIEVABLE HOMEOWNERSHIPThe metro’s affordable cost of living and low home prices allow 71 percent of households to own a home, well above the U.S. rate.

GROWING CONCENTRATION OF MANUFACTURERSMatalco, Joseph Co. and other out-of-state manufacturers are securing incentives to construct facilities in the metro.

The Youngstown metro is situated in the Mahoning Valley, spanning

portions of western Ohio and eastern Pennsylvania. The metro consists

of Mahoning, Trumbull and Mercer counties. The city of Youngstown is

the metro’s largest municipality and a midpoint between Cleveland and

Pittsburgh. Youngstown and the city of Warren account for a combined

100,000 citizens.

The metro boasts a diverse employment base driven by the education, healthcare and manufacturing sectors. Youngstown State University is the metro’s largest employer.

Other major employers represent a variety of industries and include Joseph Company International, a constructing a beverage and technology complex in Youngstown that will produce the world’s first self-chilling beverage. Canadian-based manufacturer Matalco recently opened an aluminum re-melt factory in the village of Lordstown.

The Lordstown Energy Center is building a $900 million facility that will produce energy for roughly 800,000 homes beginning in 2018.

554K2016

POPULATION:

225K2016

HOUSEHOLDS:

43.62016

MEDIAN AGE:

$43,200 2016 MEDIAN

HOUSEHOLD INCOME:

DEMOGRAPHICS

U.S. Median:37.7

U.S. Median:$57,2000.1%

Growth2016-2021*:

-0.6%Growth

2016-2021*:

ECONOMY

METRO HIGHLIGHTS

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PROPERTY PHOTO

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PROPERTY PHOTO

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PROPERTY PHOTO

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SURROUNDING AREA PHOTOS

1 Miles 3 Miles 5 MilesPOPULATION

2021 Projection 7,540 63,584 132,5802016 Estimate 7,640 65,015 135,0182010 Census 7,777 66,308 137,8962000 Census 8,244 74,551 151,585

INCOMEAverage $56,172 $55,492 $55,505Median $44,095 $41,675 $40,473Per Capita $26,151 $24,489 $23,922

HOUSEHOLDS2021 Projection 3,536 28,183 56,8032016 Estimate 3,534 28,515 57,3602010 Census 3,614 29,235 58,9382000 Census 3,654 31,448 62,377

HOUSING2016 $93,959 $95,175 $95,213

EMPLOYMENT2016 Daytime Population 5,027 48,686 149,9582016 Unemployment 4.38% 6.04% 6.23%2016 Median Time Traveled 22 23 23

RACE & ETHNICITYWhite 90.43% 75.70% 76.00%Native American 0.00% 0.03% 0.03%African American 6.33% 19.40% 18.51%Asian/Pacific Islander 0.40% 0.91% 0.98%

Demographics

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1 Mile

3 Mile

5 Mile

Marcus & Millichap hereby advises all prospective purchasersof Net Leased property as follows:

The information contained in this Marketing Brochure hasbeen obtained from sources we believe to be reliable.However, Marcus & Millichap has not and will not verify any ofthis information, nor has Marcus & Millichap conducted anyinvestigation regarding these matters. Marcus & Millichapmakes no guarantee, warranty or representation whatsoeverabout the accuracy or completeness of any informationprovided.

As the Buyer of a net leased property, it is the Buyer’sresponsibility to independently confirm the accuracy andcompleteness of all material information before completingany purchase. This Marketing Brochure is not a substitute foryour thorough due diligence investigation of this investmentopportunity. Marcus & Millichap expressly denies anyobligation to conduct a due diligence examination of thisProperty for Buyer.

Any projections, opinions, assumptions or estimates used inthis Marketing Brochure are for example only and do notrepresent the current or future performance of this property.The value of a net leased property to you depends on factorsthat should be evaluated by you and your tax, financial andlegal advisors.

Buyer and Buyer’s tax, financial, legal, and constructionadvisors should conduct a careful, independent investigationof any net leased property to determine to your satisfactionwith the suitability of the property for your needs.

Like all real estate investments, this investment carriessignificant risks. Buyer and Buyer’s legal and financial advisorsmust request and carefully review all legal and financialdocuments related to the property and tenant. While thetenant’s past performance at this or other locations is animportant consideration, it is not a guarantee of futuresuccess. Similarly, the lease rate for some properties, includingnewly-constructed facilities or newly-acquired locations, may

be set based on a tenant’s projected sales with little or norecord of actual performance, or comparable rents for thearea. Returns are not guaranteed; the tenant and anyguarantors may fail to pay the lease rent or property taxes, ormay fail to comply with other material terms of the lease; cashflow may be interrupted in part or in whole due to market,economic, environmental or other conditions. Regardless oftenant history and lease guarantees, Buyer is responsible forconducting his/her own investigation of all matters affectingthe intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacementtenant if the current tenant should default or abandon theproperty, and the lease terms that Buyer may be able tonegotiate with a potential replacement tenant considering thelocation of the property, and Buyer’s legal ability to makealternate use of the property.

By accepting this Marketing Brochure you agree to releaseMarcus & Millichap Real Estate Investment Services and hold itharmless from any kind of claim, cost, expense, or liabilityarising out of your investigation and/or purchase of this netleased property.

CONFIDENTIALITY AND DISCLAIMER

The information contained in the following MarketingBrochure is proprietary and strictly confidential. It is intendedto be reviewed only by the party receiving it from Marcus &Millichap and should not be made available to any otherperson or entity without the written consent of Marcus &Millichap. This Marketing Brochure has been prepared toprovide summary, unverified information to prospectivepurchasers, and to establish only a preliminary level of interestin the subject property. The information contained herein isnot a substitute for a thorough due diligence investigation.Marcus & Millichap has not made any investigation, andmakes no warranty or representation, with respect to theincome or expenses for the subject property, the futureprojected financial performance of the property, the size andsquare footage of the property and improvements, thepresence or absence of contaminating substances, PCB’s or

asbestos, the compliance with State and Federal regulations,the physical condition of the improvements thereon, or thefinancial condition or business prospects of any tenant, or anytenant’s plans or intentions to continue its occupancy of thesubject property. The information contained in this MarketingBrochure has been obtained from sources we believe to bereliable; however, Marcus & Millichap has not verified, andwill not verify, any of the information contained herein, norhas Marcus & Millichap conducted any investigation regardingthese matters and makes no warranty or representationwhatsoever regarding the accuracy or completeness of theinformation provided. All potential buyers must takeappropriate measures to verify all of the information set forthherein.

NON-ENDORSEMENT NOTICE

Marcus & Millichap Real Estate Investment Services, Inc.(“M&M”) is not affiliated with, sponsored by, or endorsed byany commercial tenant or lessee identified in this marketingpackage. The presence of any corporation’s logo or name isnot intended to indicate or imply affiliation with, orsponsorship or endorsement by, said corporation of M&M, itsaffiliates or subsidiaries, or any agent, product, service, orcommercial listing of M&M, and is solely included for thepurpose of providing tenant lessee information about thislisting to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FORMORE DETAILS.

OH Broker of Record:Michael Glass

License: BRK.2007005898