7249 BANDERA ROAD SAN ANTONIO, TX 78238

OFFERING MEMORANDUM

™

Carl’s Jr (Dark)

+7.5 Years of Guaranteed Term Remain ing

$1,222,150 in Guaranteed Income

EXCLUSIVELY LISTED BYCONTENTS

EXECUTIVE OVERVIEW03FINANCIAL OVERVIEW04AREA OVERVIEW08

MITCHELL GLASSON Senior Associatedirect (949) 432-4502mitchell.glasson@matthews.comLicense No. 02016029 (CA)

KYLE MATTHEWS Broker of RecordLicense No. EC 9005919 (TX)

Com bined ±74,000 Vehic les Per Day

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• Absolute NNN Lease - fee simple ownership

• Individual Store Performance - broke Carl’s Jr. domestic and international opening week sales record

• Lease Guarantor - successful ±135 operator was assigned to the Lease in 2016 after the original Lessor defaulted

• (Pre-Covid & Post Lease Assignment) - lease restructure and real estate buybacks proposals were presented but declined by Lessor - please

see Broker for details

• ±7.8 Years of Guaranteed Term Remaining - $1,222,150 in Guaranteed Income

INVESTMENT HIGHLIGHTS

Matthews Real Estate Investment Services is pleased to present the fee simple sale of Kohls & Guitar Center, located in the city of Fort Collins, Colorado. Located on Harmony Road, a major East-West commercial thoroughfare for the trade area with over 48,000 cars per day at Harmony Road and Boardwalk Drive. Kohl’s has operated out of this location for over 13 years and Guitar Center recently renewed for 10 years demonstrating the strength of this location and commitment to this store.

SECTION 1ExecutiveOverview

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• Ideal Location - ±1.12 acre parcel located at the signalized intersection of Bandera & Eckhert Road (±74,000 Vehicles Per Day)

• Dominant Retail Corridor - Caliber Collision, Hobby Lobby, Raising Cane’s, Sherwin-Williams, Starbucks, and WalMart Supercenter within 1.2

miles of the subject property on Bandera Road

• Proven Market & Rapid Growth - 13% average population growth within 1, 3, & 5-mile radius since 2010

• John Marshall High School - walking distance with approximate enrollment of ±3,000 students (nearest drive-through property)

• Trails of Leon Creek Apartments - new construction, located across the street, by PEDCOR Companies (known for prominent development in

affluent market of Carmel, IN - #1 Ranking in Best Places to Live US)

INTRINSIC VALUE OF REAL ESTATE

Matthews Real Estate Investment Services is pleased to present the fee simple sale of Kohls & Guitar Center, located in the city of Fort Collins, Colorado. Located on Harmony Road, a major East-West commercial thoroughfare for the trade area with over 48,000 cars per day at Harmony Road and Boardwalk Drive. Kohl’s has operated out of this location for over 13 years and Guitar Center recently renewed for 10 years demonstrating the strength of this location and commitment to this store.

SECTION 1ExecutiveOverview

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SECTION 2FinancialOverview

T E N A N T S U M M A R Y

Tenant Dark

Ownership Fee Simple

Lease Type NNN (reverted from NNN Ground Lease)

Roof and Structure Tenant Responsible

Lease Guarantor Franchisee

Original Tenant Frontier Star CJ, LLC

Successor Tenant & Guarantor Starcorp CJ, LLC

Lease Amendment Date May 11, 2016

Original Lease Term Twenty (20) Years

Lease Commencement Date March 27, 2008

Lease Expiration Date March 27, 2028

Lease Term Remaining ±7.9 Years

Rental Increases 5% Every 5 Years

Options Two, 5-Year

A N N U A L I Z E D O P E R A T I N G D A TA

Te r mM o n t h l y

R e n tA n n u a l

R e n tR e n t / S F C a p R a t e

Order Date - 3/27/2018 $12,000 $144,000 $49 -

3/28/2018 - 3/27/2023 $12,600 $151,200 $52 5.00%

3/28/2023 - 3/27/2028 $13,230 $158,760 $55 5.00%

E X E C U T I V E S U M M A R Y

List Price $2,520,000

Cap Rate 6.00%

Gross Leasable Area ± 2,911 SF

Lot Size ± 1.17 Acres (±50,965 SF)

Year Built / Renovated 2009

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B A N D E R A R D± 5 0 , 0 0 0 V P D

E C K H E R T R D± 2 4 , 0 0 0 V P D

S U B J E C TP RO P E R T Y

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N EWMU LT I FAM I LYD E V E LO PMEN T

B A N D E R A R D± 5 0 , 0 0 0 V P D

E C K H E R T R D± 2 4 , 0 0 0 V P D

S U B J E C TP RO P E R T Y

J O H N M A R S H A LH I G H S C H O O L

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SECTION 4AreaOverview

DEMOGRAPHICSPOPULATION 1-MILE 3-MILE 5-MILE

2025 Projection 14,134 132,743 409,196

2020 Estimate 13,110 123,974 382,902

2010 Census 11,343 110,547 340,868

Growth % 2020-2025 7.81% 7.07% 6.87%

Growth % 2010-2020 15.58% 12.15% 12.33%

HOUSEHOLDS 1-MILE 3-MILE 5-MILE

2025 Projection 5,789 50,825 154,502

2020 Estimate 5,359 47,260 143,839

2010 Census 4,593 41,538 125,958

Growth % 2020-2025 8.02% 7.54% 7.41%

Growth % 2010-2020 16.68% 13.78% 14.20%

HOUSEHOLDS 1-MILE 3-MILE 5-MILE

Average Household

Income$54,551 $63,210 $64,263

SAN ANTONIO, TXSan Antonio officially the City of San Antonio, is the seventh most populous city in the United States and the second most populous city in both Texas and the Southern United States. Straddling the regional divide between South and Central Texas, San Antonio anchors the southwestern corner of an urban megaregion colloquially known as the “Texas Triangle”.

San Antonio is the center of the San Antonio–New Braunfels metropolitan statistical area. Commonly called Greater San Antonio, the metro area has a population of 2,473,974 based on the 2017 U.S. census estimate, making it the 24th-largest metropolitan area in the United States and third-largest in Texas. Growth along the Interstate 35 and Interstate 10 corridors to the north, west, and east make it likely that the metropolitan area will continue to expand.

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ECONOMYThe City of San Antonio maintains a strong financial position with a “AAA” general obligation bond rating from all three major rating agencies. The Milken Institute has ranked San Antonio No. 1 on its Best-Performing Cities list. As the seventh-largest city in the United States, San Antonio is experiencing solid economic growth in 21st-century industries such as bioscience and healthcare, aerospace, IT and cybersecurity, and green technologies. Biotech companies and healthcare systems in San Antonio contribute billions to the local economy. The Aerospace industry remains a dominant economic strength in San Antonio with the presence of several aviation and aerospace corporations, including the military. The military has had a significant relationship with San Antonio for more than 200 years and is home to several military commands. The city is also a cybersecurity hub; nationally recognized as a leader in the field of information security.

San Antonio is positioning itself to be at the forefront of the New Energy Economy in the United States, committed to investing and creating employment opportunities in green industries. The economy has remained steady and prosperous by successfully attracting new businesses and helping existing companies grow. The city has focused on creating new employment opportunities in 21st-century industries, maintaining a great quality of life, and facilitating business growth at the local and international level.

3RD LARGEST CITY

IN TEXAS

2.4 MILLION PEOPLE

6FORTUNE 500 COMPANIES

3 MAJOR

SPORTS TEAMS

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SAN ANTONIO CULTURESan Antonio is a popular tourist destination. The Alamo Mission in San Antonio (“The Alamo”), located in Downtown, is Texas’ top tourist attraction. Because of the mission, San Antonio is often called “Alamo City”.

The River Walk, which meanders through the Downtown area, is the city’s second-most-visited attraction, giving it the additional nickname of “River City”. Extended an additional 13 miles between 2009–2013, the landscaped walking and bike path line the San Antonio River from the

“Museum Reach” beginning in Brackenridge Park through downtown, “Downtown Reach”, past the Blue Star’s “Eagleland” to the “Mission Reach” ending near Loop 410 South past Mission Espada. Lined with numerous shops, bars, and restaurants, as well as the Arneson River Theater, this attraction is transformed into an impressive festival of lights during the Christmas and New Year holiday period (except for the Mission Reach), and is suffused with the local sounds of folklorico and flamenco music during the summer, particularly during celebrations such as the Fiesta Noche del Rio.

SAN ANTONIO AT TRACTIONSThe city is home to three animal attractions. SeaWorld, 16 miles west of Downtown in the city’s Westover Hills district, is the number 3 attraction and one of the largest marine life parks in the world. The very popular and historic San Antonio Zoo is in the city’s Brackenridge Park. A third animal attraction is in development by British company Merlin Entertainments to accompany SeaWorld as a second aquarium attraction and indoor counterpart. The new attraction will be inside the Shops at Rivercenter in Downtown San Antonio and will be one of Merlin’s Sea Life Aquariums.

It is expected to open by summer 2018. The San Antonio Aquarium is the third and final attraction. San Antonio is also home to several commercial amusement parks, including Six Flags Fiesta Texas, Splashtown and Morgan’s Wonderland, a theme park for children with special needs. Kiddie Park, featuring old-fashioned amusement rides for children, was established in 1925 and is the oldest children’s amusement park in the U.S.

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CONFIDENTIALITY AGREEMENT & DISCLAIMERThis Offering Memorandum contains select information pertaining to the business and affairs of Carl’s Jr located at 7249 Bandera Road, San Antonio, TX 78238 (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1. The Offering Memorandum and its contents are confidential;2. You will hold it and treat it in the strictest of confidence; and3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any

fashion or manner detrimental to the interest of the Seller.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

7249 BANDERA ROAD SAN ANTONIO, TX 78238

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EXCLUSIVELY LISTED BY

™

Carl’s Jr (Dark)

MITCHELL GLASSON Senior Associatedirect (949) 432-4502mitchell.glasson@matthews.comLicense No. 02016029 (CA)

KYLE MATTHEWS Broker of RecordLicense No. EC 9005919 (TX)

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11-2-2015

Information About Brokerage ServicesTexas law requires all real estate license holders to give the following informaƟon about

brokerage services to prospecƟve buyers, tenants, sellers and landlords.

TYPES OF REAL ESTATE LICENSE HOLDERS: .• A BROKER is responsible for all brokerage acƟviƟes, including acts performed by sales agents sponsored by the broker. • A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.

A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): • Put the interests of the client above all others, including the broker’s own interests; • Inform the client of any material informaƟon about the property or transacƟon received by the broker; • Answer the client’s quesƟons and present any offer to or counter-offer from the client; and • Treat all parƟes to a real estate transacƟon honestly and fairly.

A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:

AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a wriƩen lisƟng to sell or property management agreement. An owner's agent must perform the broker’s minimum duƟes above and must inform the owner of any material informaƟon about the property or transacƟon known by the agent, including informaƟon disclosed to the agent or subagent by the buyer or buyer’s agent.

AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a wriƩen representaƟon agreement. A buyer's agent must perform the broker’s minimum duƟes above and must inform the buyer of any material informaƟon about the property or transacƟon known by the agent, including informaƟon disclosed to the agent by the seller or seller’s agent.

AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parƟes the broker must first obtain the wriƩen agreement of each party to the transacƟon. The wriƩen agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligaƟons as an intermediary. A broker who acts as an intermediary:

• Must treat all parƟes to the transacƟon imparƟally and fairly; • May, with the parƟes' wriƩen consent, appoint a different license holder associated with the broker to each party (owner and

buyer) to communicate with, provide opinions and advice to, and carry out the instrucƟons of each party to the transacƟon. • Must not, unless specifically authorized in wriƟng to do so by the party, disclose:

ᴑ that the owner will accept a price less than the wriƩen asking price; ᴑ that the buyer/tenant will pay a price greater than the price submiƩed in a wriƩen offer; and ᴑ any confidenƟal informaƟon or any other informaƟon that a party specifically instructs the broker in wriƟng not to

disclose, unless required to do so by law.

AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transacƟon without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.

TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: • The broker’s duƟes and responsibiliƟes to you, and your obligaƟons under the representaƟon agreement. • Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.

LICENSE HOLDER CONTACT INFORMATION: This noƟce is being provided for informaƟon purposes. It does not create an obligaƟon for you to use the broker’s services. Please acknowledge receipt of this noƟce below and retain a copy for your records.

Licensed Broker /Broker Firm Name or Primary Assumed Business Name

License No. Email Phone

Designated Broker of Firm License No. Email Phone

Licensed Supervisor of Sales Agent/Associate

License No. Email Phone

Sales Agent/Associate’s Name License No. Email Phone

Regulated by the Texas Real Estate Commission

Buyer/Tenant/Seller/Landlord Initials

InformaƟon available at www.trec.texas.gov IABS 1-0

Date

Kyle Matthews/Matthews Retail Group Inc. 678067 kyle.matthews@matthews.com (310) 919-5757

Kyle Matthews 678067 kyle.matthews@matthews.com (310) 919-5757