Exclusive OFFERING $1,754, % CAP HARDEE S

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1 SUBJECT PROPERTY Exclusive OFFERING $1,754, % CAP HARDEE S EXP DALLAS JOE CAPUTO joe@exp1031.com BOB MOORHEAD bob@exp1031.com property. Brand new construction. 2,954+ SF building on acre site. tenant.. Franchisee: Paradigm Investment Group, LLC, operates 95 locations. lease structure. Brand new, 20-year, NNN lease with 7.5% rent increases every 5-years. location. is strategically located along Saint Mary Street (12,004 Cars / Day). The site is an outparcel in the North Lafourche shopping center. This development is anchored by Rouses supermarket and includes Rite Aid, Curves, Capital One, and Subway in its tenant mix. Other nearby retailers include Family Dollar, Dollar General, Papa John s, Pizza Hut, O Reilly Auto Parts, Shell, and Texaco. The Rouses corporate headquarters is located just east of. With 4,500 employees company wide Rouses contributes significantly to the local economy. A John Deere factory is located just northeast of the site. John Deere employs over 500 people locally.

2 Table of contents Disclaimer PAGE 1: PAGE 2: PAGE 3: PAGE 4: PAGE 5: PAGE 6: PAGE 7: PAGE 8-9: PAGE 10: COVER TABLE OF CONTENTS DISCLAIMER INVESTMENT TENANT LEASE OVERVIEW SITE PLAN PROPERTY PHOTOS AERIAL PHOTO LOCATION OVERVIEW LOCATION MAPS DEMOGRAPHICS SUBJECT PROPERTY Disclaimer EXP Realty Advisors, Inc. ( Agent ) has been engaged as an agent for the sale of the property located at the by the owner of the Property ( Seller ). The Property is being offered for sale in an as-is, where-is condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. The enclosed materials are being provided solely to facilitate the prospective investor s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or other 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 therein. Neither the Agent nor the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein. Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller. Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller s obligations hereunder have been satisfied or waived. By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller and Agent. Broker of Record: Joe Mann Retail Specialists, Inc. Louisiana Real Estate License: BROK CORP 2

3 Investment overview PRICE: $1,754,000 CAP RATE: 6.50% NET OPERATING INCOME: $114,004 Initial Lease Term: 20-Years, Plus 4, 5-Year Options to Renew Projected Rent Commencement: July 2013 Projected Lease Expiration: July 2033 Lease Type: Absolute NNN BUILDING AREA: 2,954+ Square Feet Rent Increases: 7.5% in Lease Year 6 & Escalating Every 5-Yrs. LAND AREA: Acres YEAR BUILT: 2013 OWNERSHIP: Fee Simple Interest OCCUPANCY: 100% Year 1-5 Annual Rent (Current): $114,004 Year 6-10 Annual Rent: $122,554 Year Annual Rent: $131,745 Year Annual Rent: $141,626 Year Annual Rent (Option 1): $152,248 Year Annual Rent (Option 2): $163,667 Tenant overview Paradigm Investment Group, LLC, a Nevada limited liability company dba Year Annual Rent (Option 3): $175,942 Year Annual Rent (Option 4): $189,138 PARADIGM INVESTMENT GROUP, LLC. Paradigm Investment Group, L.L.C. was formed in 1999 to own and operate Restaurants. This venture began with the purchase of 14 units in Springfield, IL. Shortly thereafter, they acquired another 42 units in Mobile-Pensacola-Biloxi followed by a third major acquisition 8 months later in Huntsville and Montgomery, AL (65 units). Paradigm now owns and operates 95 locations. In July 2003 the brand experienced a massive makeover of marketing, products and type of service. The brand changed ad agencies to the one used by Carl s Jr. for 10 years in 2002, dropped upwards of 40 items from the menu, and moved to a cook-to order platform at lunch. The franchisor, Food Systems, Inc. has had the same leadership since the changes were implemented back in As a result, Paradigm has experienced positive same store sales comps 61 out of the last 69 months running with the average unit volume increasing from $750k in 2002 to over $1.1 million today. HARDEE S is an American restaurant chain, which predominantly operates in the South and Midwest states. It has evolved through several corporate ownerships since its establishment in It is currently owned and operated by CKE Restaurants. Along with its sibling restaurant chain, Carl s Jr., is the 5 th largest fast-food restaurant chain in the United States after Subway, McDonald s, Burger King and Wendy s. SUBJECT PROPERTY CARL KARCHER ENTERPRISES, INC. PRIOR TO PANDA EXPRESS EXPANSION Founded by Carl s Jr. entrepreneur Carl Karcher in 1964, Carl Karcher Enterprises (CKE) today owns, operates, franchises and/or licenses 3,243 quick-service restaurants (QSR) in 43 states, primarily under the brand names Carl s Jr. and, both of which offer innovative, premium products intended to appeal to a target audience of young, hungry guys. CKE Restaurants is the parent company of Carl s Jr.,, Green Burrito, and Red Burrito restaurant chains. The company employs a dual branding technique for Carl s Jr. with Green Burrito. Similarly has a dual branding strategy with Red Burrito. Carl s Jr. primarily operates in western US and West Coast regions. In 2010 CKE Restaurants, Inc. was purchased by the private equity firm Apollo Management. The company s business strategy focuses on strengthening its competitive position, growing same-store sales, enhancing profitability of both the Carl s Jr. and concepts, and differentiating the Carl s Jr. and brands from the brands of competitors. The company had $1.28 billion in revenue in

4 SITE PLAN 4

5 PROPERTY photo SUBJECT PROPERTY 5

6 Aerial photo Rouses Corporate Headquarters 6

7 Location overview IMMEDIATE TRADE AREA is strategically located along Saint Mary Street (12,004 Cars / Day). Saint Mary street is the main east-west surface street in Thibodaux providing the subject property with direct access to the downtown area and many of the city s residential areas. The site is an outparcel in the North Lafourche shopping center. This development is anchored by Rouses supermarket and includes Rite Aid, Curves, Capital One, and Subway in its tenant mix. Other nearby retailers include Family Dollar, Dollar General, Papa John s, Pizza Hut, O Reilly Auto Parts, Shell, and Texaco. The subject property has the additional advantage of proximity to major local employers. The Rouses corporate headquarters is located just east of. With 4,500 employees company wide Rouses contributes significantly to the local economy. A John Deere factory is located just northeast of the site. John Deere employs over 500 people locally. THIBODAUX, LA / LAFOURCHE PARISH Thibodaux is a city in southeast Louisiana with a population of 14,431 and is the county seat of LaFourche Parish (Population: 96,318). As a result of Thibodaux s location 18-miles from the Louisiana Offshore Oil Port the shipping and petroleum industries both play a prominent role in the local economy. Major employers in Thibodaux include Offshore Service Vessels, LLC (975 Employees), Galliano Marine Service, LLC (700 Employees), Halliburton Energy Services, Inc. (400 Employees), and Abdon Callais Offshore, LLC (300 Employees). The education sector also has a significant economic impact and provides Thibodaux with enviable economic stability. Nicholls State University (7,093 Students) is located in Thibodaux and has 780 faculty and staff members. The unemployment rate in Lafourche Parish was 3.9% as of March NEW ORLEANS, LA & VICINITY As a result of Thibodaux s location 60-miles to the southwest, the local economy is significantly integrated with that of New Orleans. New Orleans is a major U.S. port and the largest city in the state of Louisiana with a population of 343,829 residents in the city proper and 1,235,650 in the New Orleans- Metairie-Kenner Metropolitan Statistical Area. The New Orleans economy is based on twin pillars of tourism and shipping. Additionally, New Orleans has a thriving energy sector along with a fast growing film industry presence. New Orleans consistently ranks as one of the top 10 tourist destinations in the U.S. The city is known for its jazz, Creole food, 18th and 19th century architecture, streetcars, museums, and arts. Famous festivals like Mardi Gras, the New Orleans Jazz Festival, and Satchmo SummerFest attract hundreds of thousands of tourists to New Orleans each year. The city has taken advantage of its status as a major tourism destination by establishing itself as one of the top convention sites in the country. The Ernest M. Morial Convention Center plays a significant role in drawing the city s 8.3 million annual visitors. The tourism and convention industries employ 85,000 people in New Orleans and contribute $5.5 billion annually to the local economy. New Orleans has successfully spurred the emergence of the city as a major movie production destination due in large part to the State of Louisiana granting transferable tax credits to film producers. Major sporting events also provide a significant impact to the local economy. Annual college football games such as the Bayou Classic, the New Orleans Bowl, and the Sugar Bowl are held at the Mercedes-Benz Superdome. New Orleans is 1 of 4 rotating sites for college football s BCS National Championship. The city hosted the 1st and 2nd rounds of the 2007 NCAA Men s Division I Basketball Tournament and the Final Four Championship in The city will host the upcoming BCS National Championship in January 2013 and Super Bowl XLVII in February 2013 at the Mercedes-Benz Superdome. The city proximity to the Gulf and Mississippi River provide an ideal location for a waterborne transportation hub. Port of New Orleans handles about 62 million short tons of cargo each year, which makes the port 1st in the U.S. based on volume of cargo handled, 2nd largest in the state and the 13th largest in the United States based on value of cargo. The port has the longest wharf in the world, which can accommodate 15 vessels at one time. The port handles about 50,000 barges, and 700,000 cruise passengers per year. 7

8 Location map 8

9 Location map 9

10 Demographics Demographic snapshot Radius 1 Mile 3 Mile 5 Mile Population: 2016 Projection 7,350 28,735 37, Estimate 7,303 27,942 36, Census 7,370 27,809 35,997 Growth % 2.80% 3.00% Growth % 0.50% 0.50% Households: 2016 Projection 3,025 11,175 14, Estimate 2,976 10,734 13, Census 3,005 10,690 13,638 Growth % 4.10% 4.10% Growth % 0.40% 0.50% Owner Occupied 1,957 6,602 9,020 Renter Occupied 1,018 4,132 4, Avg Household Income $50,865 $55,633 $57, Med Household Income $37,186 $38,282 $40, Per Capita Income $21,391 $22,744 $22, Households by Household Inc: Income Less than $15, ,238 2,638 Income $15,000 - $24, ,387 1,699 Income $25,000 - $34, ,306 1,607 Income $35,000 - $49, ,552 1,965 Income $50,000 - $74, ,766 2,354 Income $75,000 - $99, ,020 1,517 Income $100,000 - $149, ,222 Income $150,000 - $199, Income $200, Downtown New Orleans, LA Nicholls State University, Thibodaux, LA 10