ABSOLUTE NNN OFFERING

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1 ABSOLUTE NNN OFFERING Exclusively Offered by Cushman & Wakefield: King Mountain (Charlotte), NC Sam Young Investment Sales David Hoppe Investment Sales South Tryon Street, Ste Charlotte, NC

2 CONFIDENTIALITY AGREEMENT The material contained in this Offering Memorandum is confidential, furnished solely for the purpose of considering the acquisition of 705 York Rd, Kings Mountain, NC and is not to be used for any other purpose or made available to any other person without the express written consent of Cushman & Wakefield. The material is based in part upon information obtained from the Seller and in part upon information obtained by Cushman & Wakefield from sources it deems to be reliable. Summaries contained herein of any legal documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained herein. Prospective purchasers should make their own investigations, projections, and conclusions. It is expected that prospective investors will conduct their own independent due diligence concerning the Property, including such engineering inspections as they deem necessary to determine the condition of the Property and the existence or absence of any potentially hazardous material used in the construction or maintenance of the building or located at the land site. No representations expressed or implied are made as to the foregoing matters by Cushman & Wakefield, or assignees. Table of Contents Investment Advisors Sam Young David Hoppe EXECUTIVE SUMMARY 03 TENANT PROFILE 04 LOCATION OVERVIEW SITE PLAN LOCATION OVERVIEW LIMITING CONDITIONS 10 Bojangles MORROW, GA /2

3 EXECUTIVE SUMMARY & INVESTMENT HIGHLIGHTS Subject Property: Taco Bell Restaurant Location: 705 York Road; Kings Mountain, NC (Charlotte) Year Built: 2006 Parcel Size: 0.99 Acres Brand New Restaurant Remodel Tenant just completed an extensive interior and exterior remodel showing strong commitment to the location Building Size: 2,180 SF Tenant: Lease Term: Options to Extend: Fulenwider Enterprises, Inc. DBA Taco Bell 15 years (9.5 years remaining) Four, 5-Year Options Rent Commencement: October 3, 2012 Current Annual Rent: $99,000 Rent Escalations: Lease Type: Rent Schedule: Asking Price: 10% Every 5 Years Absolute NNN Lease. Tenant pays the taxes, maintenance and repairs to the premises. Lease Years $1,721,739 (5.75% Cap Rate) Annual Rent Years 1-5 $90,000 Years 6-10 $99,000 Years $108,900 Option 1 $119,790 Option 2 $131,769 Option 3 $144,946 Option 4 $159,440 Attractive Rental Escalations The rent is scheduled to increase 10% every 5 years of the firm lease term and options Highly Successful and Established Operator Fulenwider Enterprises, Inc. has been operating at this location since 2006 and has 37 other locations Strategic Location with Direct Access to Interstate 85 The Taco Bell is on a busy connector road that provides access to several warehouse and manufacturing facilities with high daytime employment numbers /3

4 TENANT PROFILE ABOUT YUM! BRANDS, INC., (NYSE: YUM ) Based in Louisville, Ky., is the world s largest restaurant company in terms of system restaurants with nearly 44,000 restaurants in over 135 countries and territories and more than 1.5 million associates. Yum! is ranked #422 on the Fortune 500 List and generated more than $6.4 billion in revenue in The Company s brands - KFC, Pizza Hut and Taco Bell are the global leaders of the chicken, pizza and Mexican-style food categories. Worldwide, the YUM! system opened approximately four new restaurants each day of the year, making it a leader in international retail development. ABOUT THE FRANCHISEE Fulenwider Enterprises, Inc. is a KFC & Taco Bell franchisee based in Morganton, North Carolina, midway between Charlotte and Asheville. Founded in 1965 By J.V. and Helen Fulenwider, Fulenwider Enterprises now operates 38 restaurants in North Carolina and Georgia. The company s Yum! Brand locations include twenty KFCs in North Carolina and Georgia, nine KFC/Taco Bell 2-in-1 combos in North Carolina and nine Taco Bells in North Carolina. In addition to its Yum! Brand locations, Fulenwider operates Butch s BBQ & Breakfast and Judge s Riverside Restaurant, both in Morganton, NC, and two Judge s Express locations in Valdese and Hickory, NC. YUM! Brands is rated BB by Standard & Poor s. More information is available on the company s website: YUM! Brands, Inc. is not on the lease nor do they guarantee the leases of its franchisees. /4

5 LOCATION OVERVIEW Taco Bell 30 miles CHARLOTTE The subject is positioned on the north side of York Road approximately two tenths of a mile from the Hwy 161 (York Road) and I-85 Interchange (44,000 VPD). York Road (12,000 VPD) is a busy connector road providing a direct route to Kings Mountain from I-85. York Road provides access to a significant number of warehouse and manufacturing facilities that require convenient access to I-85. Robust nearby employment combined with interstate-related traffic provides for a steady flow of customers to the restaurant facilities and convenience stores located at this interchange. Nearby business include McDonald s, Dollar General, Waffle House, BP Convenience Store and Quality Inn. Just north of the subject is the corporate offices and manufacturing facilities for Patrick Yarns. /5

6 SITE PLAN Patio York Road (11,000 VPD) Miles (44,000 VPD) Commons Road /6

7 LOCATION OVERVIEW KINGS MOUNTAIN Kings Mountain is located in Cleveland County, which is part of Charlotte s MSA. Cleveland County is easily accessed by four major interstates (I-85, I-77, I-26, and I-40) and the Charlotte Douglas International Airport (just 40 minutes away). Products of this diverse manufacturing community include truck cabs, compact discs, transmissions, aircraft parts, ceramic capacitor material, electric motors, emergency products, and various specialized textiles. Industries range from operations that employ just a handful of people to large manufacturing plants with well over 1,000 employees. Kings Mountain Demographics Population 1 Mile 3 Mile 5 Mile 2022 Projection 1,833 12,642 29, Estimate 1,816 12,481 28, Census 1,706 11,844 27,785 Growth % 1.29% 1.98% Growth % 5.38% 4.13% 2017 Population Hispanic Origin , Population by Race 1 Mile 3 Mile 5 Mile White 1,316 9,398 22,908 Black 427 2,565 4,878 Am. Indian & Alaskan Asian Hawaiian & Pacific Island Other U.S. Armed Forces Households 1 Mile 3 Mile 5 Mile 2022 Projection 797 5,073 11, Estimate 790 5,009 11, Census 741 4,749 10,879 Growth % 1.28% 1.94% Growth % 5.47% 4.10% Owner Occupied 355 3,160 7,836 Renter Occupied 435 1,849 3, Avg Household Income $40,085 $50,408 $52, Med Household Income $24,999 $38,108 $39,662 Households 1 Mile 3 Mile 5 Mile <$25, ,823 3,690 $25,000 - $50, ,397 3,280 $50,000 - $75, ,142 $75,000 - $100, $100,000 - $125, $125,000 - $150, $150,000 - $200, $200, /7

8 MARKET OVERVIEW LOCATION OVERVIEW CHARLOTTE Charlotte, NC The Charlotte metropolitan region, with a balanced economy, an attractive quality of life, a top international airport, and a significant concentration of corporate headquarters continues to be one of the most attractive, fastest growing markets in the United States, boasting a population surge of nearly 80% between 2000 and PEOPLE & BUSINESSES KEEP COMING TO CHARLOTTE Largest city in North Carolina and 17th largest city in the United States with a population exceeding 800, million people in the ten county Charlotte MSA Located in the middle of the eastern seaboard, Charlotte is accessible to 60% of the U.S. population within two hours by air #1 MOST MILLENNIAL GROWTH Apartment List, Inc. #1 BEST CITY FOR HIGH PAY AND LOW EXPENSES Yahoo #2 FASTEST GROWING CITY IN THE U.S. United States Census Diverse economy that is home to the headquarters of seven Fortune 500 companies Home to endless amenities & activities including the NFL, NBA, NASCAR, minor league baseball, U.S. National Whitewater Center, & museums #9 MOST ATTRACTIVE REAL ESTATE MARKET IN THE U.S. IN 2016 Urban Land Institute #3 BEST STATE TO DO BUSINESS Forbes #2 STATE IN THE COUNTRY FOR LOW COST OF BUSINESS (NC) Forbes /8

9 MARKET OVERVIEW CHARLOTTE ECONOMY The Charlotte metropolitan area contains a diverse economy that is home to the headquarters of seven Fortune 500 companies and sixteen Fortune 1000 firms. Between 2009 and 2015, the unemployment rate plummeted 750 basis points from 12.4% to 4.9%. MSA Population Fortune 500 Companies in Charlotte million million 2030 Projection 2.94 million 47 % Population increase between 2010 & 2030 BANKING & FINANCIAL SERVICES 58 Financial services companies with over 100 employees in Charlotte $ HQ ,771 Financial Capital of the Southeast offering a welleducated workforce Home to the Headquarters of Bank of America and Wells Fargo s eastern United States operations Total Number of Fortune 500 Firms represented in the Charlotte MSA The Number of People Employed in the financial services industry in Charlotte ENERGY Duke Energy recently dubbed Charlotte as The New Energy Capital 28,000 people working in the energy sector throughout Charlotte North Carolina is the first southern state to legislate renewable energy production and implementation by 2021 There are currently 39 power plants operating in the region with six new potential units in application process Alexander County 77 Taylorsville Hickory Statesville 40 Iredell County Salisbury Mooresville 321 Catawba County 85 Lincoln County Rowan County Lincolnton Concord Shelby Cabarrus County Gaston County Albemarle Stanly County Cleveland County Gastonia Charlotte 485 Anson County 74 Rock Hill York County Monroe Wadesboro Union County 77 Chester County Lancaster County Chester Lancaster Cheraw Chesterfield County Charlotte USA energy sector companies

10 LIMITING CONDITION Cushman & Wakefield is the exclusive agent for the sale of this property and, as such, will act as the Seller s Agent. Consequently, the prospective purchaser should not disclose any confidential information to Cushman & Wakefield. This Offering Memorandum was prepared by Cushman & Wakefield, and has been reviewed by Seller. It contains selected information pertaining to the Property and does not purport to be all-inclusive or to contain all of the information that a prospective purchaser may desire. All financial projections are provided for general reference purposes only and are based on assumptions relating to the general economy, competition, and other factors that, therefore, are subject to material change or variation. An opportunity to inspect the Property will be made available to qualified prospective purchasers. In this Offering Memorandum, certain documents, including leases and other materials, are described in summary form and do not purport to be complete nor, necessarily, accurate descriptions of the full agreements involved, nor do they constitute a legal analysis of such documents. Interested parties are expected to independently review all documents. This Offering Memorandum is subject to prior placement, errors, omissions, changes, or withdrawal without notice and does not constitute a recommendation, endorsement, or advice as to the value of the Property by Cushman & Wakefield, or the Seller. Each prospective purchaser is to rely upon its own investigation, evaluation, and judgment as to the advisability of purchasing the Property described herein. Seller expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or to terminate discussions with any party at any time with or without notice. Seller shall have no legal commitment or obligation to any purchaser reviewing this Offering Memorandum or making an offer to purchase the Property unless a written agreement for the purchase of the Property has been fully executed, delivered, and approved by the Seller, and any conditions to Seller s obligations thereunder have been satisfied or waived. Cushman & Wakefield is not authorized to make any representations or agreements on behalf of Seller. This Offering Memorandum is the property of Cushman & Wakefield, and may be used only by parties approved by Cushman & Wakefield. The Property is privately offered, and by accepting this Offering Memorandum, the party in possession hereof agrees (i) to return it to Cushman & Wakefield, and (ii) that this Offering Memorandum and its contents are of a confidential nature and will be held and treated in the strictest confidence. No portion of this Offering Memorandum may be copied or otherwise reproduced or disclosed to anyone without the prior written authorization of Cushman & Wakefield and Seller. The terms and conditions set forth above apply to this Offering Memorandum in its entirety. /10

11 EXPERIENCE A NEW LEADER IN COMMERCIAL REAL ESTATE SERVICES. SAM YOUNG Investment Advisor sam.young@cushwake.com DAVID HOPPE Investment Advisor david.hoppe@cushwake.com 550 South Tryon Street Suite 3400 Charlotte, NC