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1 Representative Photo

2 TACO BELL 7147 HACKS CROSS ROAD, OLIVE BRANCH, MS Von Karman Avenue Suite 800 Irvine, CA Phone: (949) Fax: (949) INVESTMENT ADVISORS: Shaun Riley Senior Managing Director (949) R.E. License No The information contained herein has been carefully compiled from sources we consider reliable, and while not guaranteed as to completeness or accuracy, we believe it to be correct as of this date. The proforma revenues and expenses set forth in this brochure do not constitute a representation, warranty, or guaranty of any of the numbers set forth herein or of any economic value attributable to the property or income that may be derived therefrom. Independent estimates of proforma revenues and expenses should be developed before any decision is made on whether to invest in the property. BROKER OF RECORD: Stirling Properties, LLC MS Broker No.: Representative Photo

3 Representative Photo TABLE OF CONTENTS PROPERTY OVERVIEW 4 PRICING ANALYSIS 13 AREA OVERVIEW 16 STATEMENT OF CONFIDENTIALITY & DISCLAIMER Faris Lee Investments ( FLI ) has been engaged as the exclusive financial advisor to the Seller in connection with Seller s solicitation of offers for the purchase of the property known as Taco Bell, City of Olive Branch, County of DeSoto, State of Mississippi. Prospective purchasers are advised that as part of the solicitation process, Seller will be evaluating a number of factors including the current financial qualifications of the prospective purchaser. Seller expressly reserves the right in its sole and absolute discretion to evaluate the terms and conditions of any offer and to reject any offer without providing a reason therefore. Further, Seller reserves the right to terminate the solicitation process at any time prior to final execution of the Purchase Agreement. 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, and it is not to be used for any other purpose or made available to any other person without the express written consent of Seller or FLI. The material is based in part upon information supplied by the Seller and in part upon financial information obtained by FLI from sources it deems reasonably reliable. Summaries of any documents are not intended to be comprehensive or all-inclusive, but rather only outline some of the provisions contained therein and qualified in their entirety by the actual document to which they relate. No representation or warranty, expressed or implied, is made by the Seller, FLI, or any of their respective affiliates as to the accuracy or completeness of the information contained herein. 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, including engineering and environmental inspections, to determine the condition of the Property and the existence of any potentially hazardous material located at the Property site or used in the construction or maintenance of the building at the Property site. 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 FLI 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. Prospective purchasers are not to construe the contents of this Offering Memorandum or any prior or subsequent communication from FLI or Seller or their affiliates or any of their respective officers, directors, shareholders, owners, employees, or agents as legal, tax, or other advice. Prior to submitting an offer, prospective purchasers should consult with their own legal counsel and personal and tax advisors to determine the consequences of an investment in the Property and arrive at an independent evaluation of such investment.

4 PROPERTY OVERVIEW

5 INVESTMENT SUMMARY INVESTMENT SUMMARY Faris Lee Investments is pleased to offer for sale the leased fee interest (land) leased to Pacific Bells, LLC, a large Taco Bell franchisee. Pacific Bells, LLC (doing business as Taco Bell) is constructing and will own this free standing, single tenant building, and has 25 years remaining on a new, Absolute NNN ground lease. The lease features 10% rental increases every five (5) years throughout the initial term and 10% rental increases at the beginning of each of its six (6) (5-year) option periods, which generates steady NOI growth and hedges against inflation. PRICING Pricing: $1,556,000 NOI: $70,000 Cap Rate: 4.50% Pacific Bells, LLC operates more than 150 Taco Bell restaurants in seven states. More information on the tenant can be found on their website at Taco Bell is a subsidiary of Yum Brands, Inc, which is a publicly traded company, S&P Credit Rated BB, ranked #422 in Fortune 500 (2017) with revenues of $6.36 billion, 2016 net income of $1.61 billion, 2016 assets of $1.48 billion, and 6,500 Taco Bell locations in the United States. LOCATION SUMMARY Taco Bell is ideally situated along Hacks Cross Road and Goodman Road (HWY 302), with over 40,000 vehicles passing by per day. Hacks Cross Road is a major north-south corridor home to several national/credit worthy tenants such as Dollar General, AutoZone, McDonald s, and Bancorp South. These create strong tenant synergy and generate crossover foot traffic. The subject property is located next to many distribution and manufacturing companies such as McKesson, AmerisourceBergen, William Sonoma, and Synnex, thus creating a strong consumer base in the immediate area. The close proximity of these major employers generates a high daytime population that creates increased foot traffic for Taco Bell. Additionally, there are more than 80,000 permanent residents with average household incomes exceeding $78,900 within 5 miles of the subject property. The trade area is also supported by more than 19,000 daytime employees within a 5 mile radius. Representative Photo Property Overview 5

6 PROPERTY SPECIFICATIONS PROPERTY SPECIFICATIONS Rentable Area: 2,200 SF (Est.) SF Land Area: 65,340 SF / 1.5 Acres Year Built: 4Q Zoning: C-1 - Commercial Ownership: Tenant: Guaranty: Leased Fee Interest (Land Only) Pacific Bells, LLC dba Taco Bell Franchisee TRAFFIC COUNTS (COSTAR) Vehicles Per Day Hacks Cross Road: 20,000 Goodman Road / Highway 302: 20,000 Address: 7147 Hacks Cross Road, Olive Branch, MS Access: There are two (2) access points one (1) in the shopping center parking lot and one (1) off the shopping center entrance. Improvements: There is approximately 2,200 SF of existing building area. Parking: There are approximately 30 dedicated parking stalls on the owned parcel. The parking ratio is approximately parking stalls per 1,000 SF of leasable area. PARCEL NUMBERS PARCEL ACRES SQUARE FEET ,340 PARCEL MAP Representative Photo Property Overview 6

7 INVESTMENT HIGHLIGHTS STRONG NATIONAL TACO BELL FRANCHISEE OPERATING MORE THAN 150 TACO BELLS Pacific Bells, Inc., based in Vancouver, WA, is a partnership restaurant group with an expansive portfolio of fast-casual dining restaurants throughout Mississippi, Oregon, Washington, Ohio, Alabama, Tennessee, and Wisconsin. The Franchise primarily focuses on 2 in 1 concept stores, and operates 153 Taco Bell Stores within the United States. Pacific Bells, Inc. is placed in the Big 12 for Taco Bell franchises, demonstrating the franchises credibility as one of the top 12 franchises for Taco Bell in the United States. Company Type: Franchisee Website: BRAND NEW FAVORABLE NNN GROUND LEASE - 25 YEARS REMAINING / WITH OPTIONS TO EXTEND Subject property is offered subject to a favorable ground lease (leased fee ownership) with 25 years remaining Ground lease features 10% rental increases every 5 years throughout the initial term Ground lease features 10% rental increases at each of the 6 (5-year) options to extend Potential for 55 years of security and stability including the option periods ABSOLUTE TRIPLE NET (NNN) GROUND LEASE / LEASED FEE OWNERSHIP No landlord obligations to maintain land or building No landlord management with all expenses paid directly by tenant Management-free investment for an out-of-state investor Ideal investment to satisfy a 1031 exchange Tenant will build and pay for all improvements TRUE PRIDE OF OWNERSHIP/ HIGH QUALITY 2017 CONSTRUCTION The Taco Bell is of an open and modern design, and was well constructed in The building was built in 2017 to tenant s exact specifications Features the latest Taco Bell brand design and store concepts DRIVE-THRU BUILDING This feature provides ease and convenience for customers On average, stores with drive-thrus have higher sales than stores without drive-thrus Potential high volume location ADJACENT TO MCDONALD S, WENDY S, HARDEE S, SONIC, AND KFC / ONLY TACO BELL WITHIN A 3 MILE RADIUS Creates a synergistic quick-serve restaurant hub which will potentially create additional business for Taco Bell This Taco Bell serves an extended trade area as the nearest Taco Bell is more than 3 miles away from the subject property STRONG DEMOGRAPHICS IN IMMEDIATE TRADE AREA Subject property is located in an affluent trade area within Olive Branch, which has more than 80,000 permanent residents with an annual household income of approximately 78,900 within a 5-mile radius BUILT IN CONSUMER BASE WITH MORE THAN 80 COMPANIES IN THE IMMEDIATE AREA Subject property is ideally situated in the epicenter of a manufacturing and distribution hub within the Memphis metropolitan area Olive Branch is home to over 80 manufacturing and distribution facilities with companies such as: William Sonoma, AmerisourceBergen, McKesson, Milwaukee Electric Tools, and many more in the immediate area. The property is benefited by an immediate 19,900 daytime employees within a 5-mile radius of the subject property AWARD-WINNING TRADE AREA FOR PROFESSIONALS - OLIVE BRANCH, MS Ranked #5 Best Places to Live (Money Magazine 2017) Ranked #1 Best Suburbs to Live in Mississippi and #3 Best Suburbs to Live in Memphis Area (Niche 2016) TREMENDOUS POPULATION GROWTH / 832% FROM / 42% PROJECTED FOR NEXT 10 YEARS Olive Branch was voted the fastest growing city in the U.S. by Bloomberg Businessweek in 2011 Population growth is projected to exceed 42% according to Sperlings Best Places. Property Overview 7

8 AERIAL VIEW Property Overview 8

9 RENDERINGS OF SUBJECT PROPERTY Property Overview 9

10 LOCATION MAP Property Overview 10

11 AERIAL VIEW Property Overview 11

12 SITE PLAN Drive-Thru Hacks Cross Road SITE PLAN NOT TO SCALE Property Overview 12

13 Representative Photo PRICING ANALYSIS

14 RENT ROLL Tenant Pacific Bells, LLC dba Taco Bell Size (SF) Current Monthly Monthly Rent Current Annual Annual Rent Increase Increase Rental Increases Monthly Monthly Rent $/SF Rent $/SF Date Rent $/SF Rent Type 2,200 $5,833 $2.65 $70,000 $31.82 Feb % $6,417 $2.92 $77,000 $35.00 Absolute 2/1/2018 1/31/2043 (Est.) Feb % $7,058 $3.21 $84,700 $38.50 NNN Feb % $7,764 $3.53 $93,170 $42.35 Feb % $8,541 $3.88 $102,487 $46.58 Annual Annual $/SF CAM Recovery Lease Start Lease Expires Lease Options 6 (5-Year) Year: 26-30: $9,394/mo Year: 31-35: $10,334/mo Year: 36-40: $11,367/mo Year: 41-45: $12,504/mo Year: 46-50: $13,754/mo Year: 51-55: $15,130/mo TENANT SYNOPSIS PACIFIC BELLS, INC. Pacific Bells is a top franchisee for Taco Bell, mainly focused on 2 in 1 concept stores. The company operates more than 150 Taco Bell restaurants in 7 states (AL, MS, OH, OR, TN, WA, and WI). Pacific Bells is part of the Big 12, which is comprised of the 12 largest Taco Bell franchises in the United States. Pacific Bells was founded in 1989 and is based in Vancouver, Washington. Company Type: Franchisee Website: TACO BELL Taco Bell is a subsidiary of Yum Brands, Inc. and is the nations leading Mexican-inspired quick service restaurant. The company serves made-to-order and customized tacos, burritos, and much more. The company has more than 350 franchise organizations, 6,500 restaurants locations across the United States, and serves more than 40 million customers per week. Additionally, the company has nearly 300 locations in 24 countries outside the United States. Taco Bell is headquartered in Irvine, CA and was founded in Company Type: Subsidiary Website: YUM BRANDS, INC. Yum Brands, Inc., develops, operates, and franchises quick service restaurants. The company operates under three separate segments, Kentucky Fried Chicken (KFC), Pizza Hut, and Taco Bell, which specialize in chicken, pizza, and Mexican-style food categories respectively. Through it s subsidiaries, the company prepares, packages, and sells menu food items. As of February 21, 2017 the corporation operated over 43,500 restaurants in 135 countries and territories. In May 2002, the company changed its name to Yum Brands, Inc. from TRICON Global Restaurants, Inc.. The company was founded in 1997, and is currently headquartered in Louisville, Kentucky. Company Type: Public: ( NYSE: YUM) 2016 Revenue: $6.36 Billion 2016 Locations: 43, Assets: $1.48 Billion 2016 Employees: 90,000 S&P Ranking: BB 2016 Net Income: $1.61 Billion Website: Fiscal Year End: December Pricing Analysis 14

15 TRANSACTION SUMMARY Financial Information Lease Type: Ground Lease Price: $1,556,000 Tenant is responsible for taxes, insurance, CAM, roof and structure. Landlord has Zero responsibilities. Property Specifications Rentable Area: 2,200 SF Land Area: 1.5 Acres Year Built: 2017 Address: 7147 Hacks Cross Road Olive Branch, MS APN: Ownership: Leased Fee Interest (Land Only) Tenant: Pacific Bells, LLC dba Taco Bell Guaranty: Franchisee (150+ locations) Estimated Operating Information In-Place Feb-2023 Feb-2028 Gross Potential Rent $70,000 $77,000 $84,700 Plus Recapture NNN NNN NNN Effective Gross Income $70,000 $77,000 $84,700 Less Expenses (NNN) (NNN) (NNN) Net Operating Income $70,000 $77,000 $84,700 Cap Rate: 4.50% 4.95% 5.44% Representative Photo Pricing Analysis 15

16 AREA OVERVIEW

17 DESOTO COUNTY OVERVIEW % POPULATION GROWTH SINCE % PREDICTED JOB GROWTH OVER THE NEXT 10 YEARS 3.51% RECENT JOB GROWTH IN OLIVE BRANCH 1.60% HOME APPRECIATION IN THE LAST 12 MONTHS 37.5 MEDIAN AGE IN OLIVE BRANCH $185,000 MEDIAN HOME VALUE 23 Mins AVERAGE COMMUTE TIME Sourse: Sperlings Best Places FAST FACTS A diverse and growing city The city of Olive Branch Olive Branch, is located in DeSoto County, Mississippi. The city is a prominent suburb of Memphis, Tennessee and is situated on the border between both states. As of 2017, the city was named the 5th best place to live by Money Magazine, and has been recognized by one of the fastest growing cities in the United States. Olive Branch Economy Olive Branch s economy is heavily embedded in distribution and manufacturing. The city has more than 80 manufacturing and distribution centers for companies such as General Electric, William Sonoma, AmerisourceBergen, and more. Additionally, the city s economy incorporates healthcare, with an influx of medical companies entering the city after the building of the cities Methodist Hospital. Population 37,500 residents AHHI $79,600 MAJOR EMPLOYERS A number of top companies operate within Olive Branch AmerisourceBergen AmerisourceBergen is Fortune 500 s 11th ranked company. The company holds their largest distribution center in Olive Branch. The 410,000 square foot facility employs more than 130 employees. Williams-Sonoma Williams-Sonoma holds a 2 million square foot distribution center in Olive Branch. The center employs approximately 1,000 employees. The company plans to hire an additional 2,000 workers to its 3 distribution center (including Olive Branch) around Memphis in McKesson Corporation McKesson is Fortune 500 s 5th ranked company. The company invested $115 million to create a distribution center in Olive Branch in The distribution center employs more than 400 employees. TOP SCHOOLS DeSoto County enjoys access to several highlyranked colleges and universities University of Memphis The University of Memphis was founded in The University has an undergraduate student body of more than 17,000 students, and has a campus size of 1,600 acres. The University has more than 200 campus organizations and provides more than 50 different degree programs. University of Mississippi DeSoto Campus The University of Mississippi DeSoto Campus is a satellite campus. The campus opened in 1996, and has a student body in excess of 650 students. Belhaven University DeSoto Campus Belhaven University DeSoto Campus opened in The satellite campus is approximately 4,400 square feet and offers more than 35 different academic programs for students in Northern Mississippi. NEARBY ATTRACTIONS Some of Northern Mississippi s best attractions are just a short distance from DeSoto County Mississippi RiverKings The Mississippi River Kings are a professional minor league ice hockey team. The team plays at Landers Center, which holds up to 10,000 visitors. The team experiences an annual attendance per game of 2,260. Elvis Presley Automobile Museum & Graceland The museum first opened its doors in 1989, and is located at the old home of Elvis Presley (Graceland). The museum has more than 20 automobiles, and visited by more than 3,000 groups of people annually. Memphis Zoo The Memphis Zoo is located in Midtown, Memphis, Tennessee. The zoo is home to more than 3,500 animals and over 500 different species. The zoo is visited by more than 1 million visitors annually, with more than 300,000 outside of Memphis. Pricing Analysis 17

18 OLIVE BRANCH ECONOMY MANUFACTURING AND DISTRIBUTION Olive Branch s economy is deeply rooted in manufacturing and distribution. The county of DeSoto is well diversified with over 180 manufacturers and distributors residing in the county, and more than 80 of those manufacturers and distributors are located within Olive Branch. Olive Branch is home to many reputable companies such as McKesson, Williams Sonoma, AmerisourceBergen, Milwaukee Electric Tools, and much more. Many companies are considering Olive Branch due to the cities incentives for manufacturers and distributors. These incentives include: 1. No sales tax on purchases of raw materials, processing chemicals, or packaging materials. 2. A 1.5% sales tax on machinery and parts used directly in manufacturing and on industrial electricity, natural gas, and fuel 3. State-sponsored bond financing programs for land, building, and new equipment that includes income tax. 4. State income tax credits for five years of 2.5% of payroll with the creation of 20 or more jobs 5. Five-year state income tax credits of $1,000 for each new R&D job created year exemptions from county and city property taxes, except school taxes and road and bridge taxes. Olive Branch and DeSoto county are still experiencing growth with companies such as Sephora entering the region. Sephora is creating a new fulfillment center and anticipates to add an additional 400 jobs to Olive Branch. Additionally, DeSoto County in 2017 has experienced more than 2,300 new jobs, seen investment in excess of $85 million, and currently has a speculative 4,000,000 square of industrial space available for future growth. Pricing Analysis 18

19 DEMOGRAPHICS DESCRIPTION ( 1 MILE 3 MILE 5 MILE 10 MILE POPULATION 2017 Estimated Population 4,497 30,605 80, , Projected Population 4,787 32,240 81, , Census Population 4,467 28,078 75, , Census Population 3,077 16,709 49, ,431 Projected Annual Growth 2017 to % 1.1% 0.4% - Historical Annual Growth 2000 to % 4.9% 3.7% 1.6% 2017 Median Age HOUSEHOLDS 2017 Estimated Households 1,702 11,202 28, , Projected Households 1,839 11,998 30, , Census Households 1,657 10,081 26, , Census Households 1,134 5,980 17,281 88,846 Projected Annual Growth 2017 to % 1.4% 0.9% 0.7% Historical Annual Growth 2000 to % 5.1% 4.0% 1.8% RACE AND ETHNICITY 2017 Estimated White 65.8% 59.0% 42.5% 46.5% 2017 Estimated Black or African American 27.1% 34.5% 50.5% 45.1% 2017 Estimated Asian or Pacific Islander 0.7% 1.6% 2.5% 3.3% 2017 Estimated American Indian or Native Alaskan 0.2% 0.2% 0.2% 0.2% 2017 Estimated Other Races 6.2% 4.8% 4.4% 4.8% 2017 Estimated Hispanic 7.2% 5.2% 5.2% 6.0% INCOME BUSINESS 2017 Estimated Average Household Income $69,681 $73,883 $78,961 $87, Estimated Median Household Income $62,275 $65,836 $71,833 $74, Estimated Per Capita Income $26,377 $27,043 $28,583 $33, Estimated Total Businesses ,894 13, Estimated Total Employees 2,354 10,027 19, , Estimated Employee Population per Business Estimated Residential Population per Business Pricing Analysis 19