Offering Memorandum CHIPOTLE GROUND LEASE 4625 E. 96TH ST, INDIANAPOLIS, IN OFFERING MEMORANDUM

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1 Offering Memorandum CHIPOTLE GROUND LEASE 4625 E. 96TH ST, INDIANAPOLIS, IN OFFERING MEMORANDUM

2 CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Chipotle located at 4625 E. 96th St, Indianapolis, IN 46240( Property ). It has been prepared by Matthews Retail Advisors. 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 Retail Advisors. 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; and 3. 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 Retail Advisors 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 Retail Advisors 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.

3 CHIPOTLE 4625 E. 96TH ST INDIANAPOLIS, IN TABLE OF CONTENTS 04. Investment Highlights 05. Executive Summary 07. Property Overview 11. Tenant Overview 12. Area Overview 14. Demographics Brianna Burgess Associate License No O M brianna.burgess@matthews.com Calvin Short VP & Senior Director - STNL License No O M calvin.short@matthews.com Chris Hake Broker of Record License No. RB

4 EXECUTIVE SUMMARY Investment Highlights Absolute NNN Ground Lease Lease features a corporate guarantee from Chipotle Mexican Grill, Inc. Building reverts back to landlord upon expiration or early termination of lease Absolute NNN lease with zero landlord responsibility The tenant recently extended their first option period showing their commitment to the location The lease calls for 7.50% rental increases at the beginning of each option period There are five (5), five (5) year option periods remaining Highly Sought After Tenant Chipotle is a market leader in the fast casual restaurant industry with a market cap of $12.21B This is a rare opportunity to invest in a freestanding Chipotle asset with outdoor patio space, as most of their locations are in-line or end-cap sites Rent at this location is about 40% below Chipotle s national average rent per unit further ensuring the long term security of the asset Located in Dense Retail Corridor with Affluent Demographics Over 165,000 residents within a 5-mile radius Estimated average household income in a 5-mile radius is over $91,000 Indianapolis is the state capital of Indiana and the twelfth largest city in the country Located on a major thoroughfare, East 96th Street experiences heavy traffic with over 34,000 vehicles passing per day Ideally positioned near the I a major mode of transportation throughout Indianapolis

5 Executive Summary CHIPOTLE GROUND LEASE 4625 E. 96th St Indianapolis, IN List Price... $1,358,000 CAP Rate - Current % Gross Leasable Area... 2,772 Lot Size AC (6,708 SF) Year Built Annualized Operating Data Monthly Rent Annual Rent Increases CAP Rate Current - April 30, 2019 $6, $78, % 5.75% Option 2 - April 30, 2024 $6, $83, % 6.18% Option 3 - April 30, 2029 $7, $90, % 6.65% Option 4 - April 30, 2034 $8, $97, % 7.14% Option 5- April 30, 2039 $8, $104, % 7.68% Option 6 - April 30, 2044 $9, $112, % 8.25% Tenant Summary Tenant Trade Name Chipotle Type of Ownership Ground Lease Lease Guarantor Chipotle Mexican Grill, Inc. Lease Type NNN Roof and Structure Tenant Responsible Original Lease Term 10 Years Lease Commencement Date April 15, 2004 Rent Commencement Date April 15, 2004 Lease Expiration Date April 30, 2019 Term Remaining on Lease ±3 Years Increases 7.50% Rental Increases Every 5 Years Options Five (5), Five (5) Year Options Matthews Retail Advisors 5

6 PROPERTY OVERVIEW 6 Chipotle

7 Physical Description Property Name Property Address Chipotle 4625 E. 96th St Indianapolis, IN Assessor s Parcel Number Site Description Number of Stories One Year Built 2004 Gross Leasable Area (GLA) 2,772 SF Lot Size 0.15 AC (6,708 SF) Type of Ownership Fee Simple Parking 40 Surface Spaces Parking Ratio 5.96 : 1,000 SF Landscaping Professional Topography Generally Level Matthews Retail Advisors 7

8 Regional Map 8 Chipotle

9 Tenant Map 9 Chipotle Matthews Retail Advisors 9

10 TENANT OVERVIEW

11 Tenant Overview Tenant Chipotle Company Name Chipotle Mexican Grill, Inc. Ownership Public Revenue $4.5 B Net Income $ M Stock Symbol CMG Board NYSE No. of Locations ± 2,000 No. of Employees ± 59,330 Headquartered Denver, CO Chipotle Mexican Grill owns and operates more than 2,000 quick-casual eateries popular for their burritos and other Mexican food items. Customers can build a 1-1/4 pound burrito from a lineup that includes chicken, steak, barbecue or free-range pork, as well as beans, rice, guacamole, and various other veggies and salsas. The company claims that with extras, its menu offers more than 65,000 choices. Chipotle restaurants also serve soft tacos, crispy tacos, chips and salsa, beer, and margaritas. As of December 31, 2015, the company operated 1,971 Chipotle restaurants in the United States; 11 in Canada; 7 in England; 4 in France; and 1 in Germany. It also operated 13 ShopHouse Southeast Asian Kitchen restaurants serving fastcasual and Asian-inspired cuisine, as well as owned and operated 3 Pizzeria Locale restaurants that are fast casual pizza concept restaurants. The company was founded in 1993 and is based in Denver, Colorado. Web Site Year Founded Chipotle

12 AREA OVERVIEW Indianapolis, IN Indianapolis is the capital of the U.S. state of Indiana and the seat of Marion County. It is located in the East North Central region of the Midwest, near the confluence of the White River and Fall Creek. The city covers 372 square miles and had an estimated population of 853,173 in 2015, making it the largest city in Indiana, second largest in the Midwest. Indianapolis hosts many notable events annually, including the largest single-day sporting event in the world, the Indianapolis 500 automobile race. Economy Indianapolis has a diversified economy with major contributions from education, health care and finance. Tourism is also a vital part of the economy as the city plays host to numerous conventions and sporting events. Indianapolis role in the sports arena has magnified. Each major sporting event pumps tens of millions of dollars into the economy and leads to expanded business opportunities, more jobs, and increasing tax payments to the city. Contributing to an annual gross domestic product (GDP) of $125.9 billion, the Indianapolis metropolitan area is the 26th largest economy in the U.S. and 42nd largest in the world. As of 2015, three Fortune 500 companies were based in the city, including Anthem Inc., Eli Lilly and Company, and Calumet Specialty Products Partners. The city is also the central hub of Indiana s 4,700-mile railroad infrastructure, the ninth most extensive rail mileage in the U.S. This distinction has allowed the city to become an international logistics center, home to 1,500 distribution firms, employing 100,000 workers. Indianapolis: Top Employers # Employer 1 Eli Lilly and Company 2 Indiana University 3 St Vincent Hospital and Health 4 Clarian Health Partners Inc. 5 Indiana University School of Medicine # Employer 6 Methodist Hospital 7 St. Francis Hospital & Health Center 8 St. Francis Healthcare Foundation 9 Rolls-Royce Corporation 10 Roche Diagnostics Corporation 12 Chipotle

13 Tourism Tourism and hospitality is an increasingly vital sector to the Indianapolis economy. A Rockport Analytics study found that 27.4 million visitors generated a record $4.5 billion in Indianapolis has long been a sport tourism destination, but has more recently relied on conventions. The Indiana Convention Center is connected to 12 hotels and 4,700 hotel rooms, the most of any U.S. convention center. Beyond the conventions, there are many other reasons for visitors to visit Indianapolis. The city is home to dozens of annual festivals and events showcasing and celebrating Indianapolis culture. Notable events include the Month of May (a series of celebrations leading to the Indianapolis 500), Circle City IN Pride, Indiana Black Expo, Indiana State Fair, and Historic Irvington Halloween Festival. Indianapolis has a wide variety of museums and galleries which appeal to art lovers, car enthusiasts, sports fans, history buffs and people interested in science and technology. Some of the top rated attractions in Indianapolis include the White River State Park, the NCAA Hall of Champions, the Soldiers and Sailors Monument, and the Indiana State Museum. From the legendary Indianapolis 500 to the Pacers and the Colts, the city offers ample opportunities to view professional and amateur sporting events, take part in athletic events and visit sports museums. At the Indianapolis Motor Speedway and Hall Of Fame Museum you can tour the famous track or visit the museum dedicated to automobiles and auto racing. Other sporty museums include the NCAA Hall of Champions. To get in on some of the action, visitors can head to SportZone which features six acres of indoor athletic facilities the whole family will enjoy. 13 Chipotle

14 Demographics Population 1-Mile 3-Mile 5-Mile 2021 Projection 4,829 58, , Estimate 4,562 56, , Census 4,214 54, , Census 2,976 52, ,100 Growth % 3.19% 3.43% Growth % 4.12% 4.84% Growth % 5.08% 5.54% Households 1-Mile 3-Mile 5-Mile 2021 Projection 2,345 27,316 75, Estimate 2,253 26,410 72, Census 2,152 25,278 68, Census 1,561 23,604 63,050 Growth % 3.43% 3.95% Growth % 4.48% 5.89% Growth % 7.09% 9.11% Income 1-Mile 3-Mile 5-Mile Income < $15, % 9.12% 8.35% Income $15,000 - $24, % 8.21% 7.96% Income $25,000 - $34, % 10.53% 9.67% Income $35,000 - $49, % 13.52% 12.57% Income $50,000 - $74, % 18.14% 17.22% Income $75,000 - $99, % 12.67% 13.16% Income $100,000 - $124, % 7.83% 9.06% Income $125,000 - $149, % 5.94% 6.66% Income $150,000 - $199, % 6.30% 6.80% Income $200,000 - $249, % 2.96% 2.99% Income $250,000 - $499, % 3.61% 4.07% Income $500, % 1.17% 1.50% 2016 Est. Average Household Income $73,808 $86,109 $91, Est. Median Household Income $49,868 $61,875 $66, Chipotle

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16 Brianna Burgess Associate License No O M brianna.burgess@matthews.com Calvin Short VP & Senior Director - STNL License No O M calvin.short@matthews.com Chris Hake Broker of Record License No. RB