Burger King - New 20-Year Lease 7400 S. Western Avenue, Oklahoma City, OK 73139

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1 Representative Photo Burger King - New 20-Year Lease 7400 S. Western Avenue, Oklahoma City, OK OFFERING MEMORANDUM

2 CONFIDENTIALITY & DISCLAIMER STATEMENT This Marketing Brochure contains select information pertaining to the business and affairs of Burger King located at 7400 S. Western Avenue, Oklahoma City, OK here to referred to as Property. Information in this Marketing Brochure is confidential and provided solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose and may not be made available to any other person without the written consent of the Seller or Matthews Retail Group, Inc. This Marketing Brochure has been prepared by Matthews Retail Group, Inc. (also known as Matthews Retail Advisors) based in part upon information supplied by the Seller and in part upon financial information obtained from sources deemed reliable by Matthews Retail Group, Inc. However, Matthews Retail Group, Inc. has not and will not verify any of this information, nor has Matthews Retail Group, Inc. conducted any investigation regarding these matters. Matthews Retail Group, Inc. makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. It is the Buyer s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for the Buyer s thorough due diligence investigation of this investment opportunity. Matthews Retail Group, Inc. expressly denies any obligation to conduct a due diligence examination of this Property for the Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this Property. The value of a net leased property to the Buyer depends on factors that should be evaluated by the Buyer and their tax, financial and legal advisors. Buyer and Buyer s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any property to determine to their satisfaction the suitability of the Property for their investment goals. Like all real estate investments, this investment carries significant risks. Buyer and Buyer s legal and financial advisors must request and carefully review all legal and financial documents related to the Property and tenant. While the tenant s past performance at this or other locations is an important consideration, it is not a guarantee of future performance. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the Property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the Property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the Property, and Buyer s legal ability to make alternate use of the Property. By accepting this Marketing Brochure you agree to release the Seller and Matthews Retail Group, Inc. of any and all liability and hold the parties harmless from any kind of claim, cost, or expense arising out of your investigation and/or purchase of this Property. NON-ENDORSEMENT NOTICE Matthews Retail Group, Inc. is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this Marketing Brochure. The presence of any corporation s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Matthews Retail Group, Inc., its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Matthews Retail Group, Inc., and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

3 TABLE OF CONTENTS PRICING AND FINANCIAL ANALYSIS Investment Overview Financial Overview Least Abstract Company Overview PROPERTY DESCRIPTION Property Overview Bird s Eye Tenant Map Regional Map DEMOGRAPHICS Demographics Report City Overview PRESENTED BY Aron Cline VP & Sr. Director License No O M aron.cline@matthews.com Jessica Dearnley Broker of Record License No

4 Representative Photo

5 Investment Overview Matthews Retail Advisors have been retained by the ownership to exclusively present the sale of this fee simple Burger King investment property in Oklahoma City, the capital and largest city in Oklahoma. Oklahoma City is also ranked in the Top 50 MSAs in the USA. The site is strategically positioned alongside a gas station with easy off-ramp access and visibility from the I-240, which exceeds 100,000 Vehicles Per Day (VPD). South Western Ave receives over 28,000 (VPD) and SW 74th St. (the entry street of the off-ramp) receives an estimated 26,000, totaling over 50,000 vehicles per day in traffic. The strength of this site has been proven with over 25 years of strong operations, and has demonstrated exceptional growth in the past several years. Recent national tenant development directly west of the site in Western View Shopping Center has contributed to this growth and 2015 store sales were 6.32% and 5.75% higher than budgeted by the operator, and a Whopping combined growth of 14.94% since s store sales and 2017 base rent result in an astonishingly low rent-to-sales ratio of 7.19%. Increased traffic, national development, strong demographics, site history, and above-average store sales result in a rapidly appreciating asset in the capital of Oklahoma. Oklahoma City s (2015) astonishing MSA growth of 8.42% was higher than national average. For reference, under half of all metros exceeded a 3% growth rate. Source: United States Office of Management and Budget (OMB) INVESTMENT HIGHLIGHTS PROPERTY DETAILS Brand New 20-Year Lease and Building Currently Undergoing Remodel Strong Investment Opportunity Established Location - Over 25 years of operating history Seasoned Operator - Owner, Rick Verity, has over 35 years of experience He knows what it takes to be successful and operates over 25 Burger Kings in Oklahoma Guarantee - Pamax Management Inc., guarantee is backed by 24 Burger Kings in Oklahoma LOCATION Very strong population demographics - 215,500+ within 5 miles High average household incomes - $110,000+ within 5 miles Strategic location with exceptional traffic counts in the immediate area Major retail trade area - nearby national tenants include a Kroger company grocery store, Home Depot, Marshalls, BMO Harris Bank, IHOP, Taco Bell, Dunkin Donuts, Chick-fil-A, McDonald s and many more TENANT Burger King is the second largest quick-service hamburger Iconic Brand - Burger King has over 15,000 units worldwide and one of the most successful burger chains in the world since

6 Financial Overview EXECUTIVE SUMMARY Burger King (New 20-Year Lease) 7400 S. Western Avenue Oklahoma City, OK List Price $1,727,000 CAP Rate - Current % Gross Leasable Area ,157 SF Year Built Lot Size ±0.69 Acres (30,050 SF) ANNUALIZED OPERATING DATA Monthly Rent Annual Rent Increases CAP Rate 01/01/ /31/2021 $7, $95, % 01/01/ /31/2026 $8, $104, % 6.05% 01/01/ /31/2031 $9, $114, % 6.66% 01/01/ /31/2036 $10, $126, % 7.32% Option 1 ( ) $11, $139, % 8.05% Option 2 ( ) $12, $152, % 8.86% Option 3 ( ) $14, $168, % 9.74% Option 4 ( ) $15, $185, % 10.72% TENANT SUMMARY Tenant Trade Name Type of Ownership Lease Guarantor Lease Type Roof and Structure Burger King Fee Simple Pamax Management Inc. NNN Tenant Responsible Original Lease Term 20 Years Original Lease Commencement Date January 1, 2011 Rent Commencement Date January 1, 2017 Lease Expiration Date December 31, 2036 Representative Photo Term Remaining on Lease Increases Options 20 Years 10% Every Five (5) years Three (3), Five (5) Year Options One (1), Four (4) Year Option 6

7 Lease Abstract Tenant: Pamax Management, Inc. d/b/a Burger King Store # 6286 Tenant Address: 611 South Elm Place, Broken Arrow, OK Property Address: 7400 S. Western Ave, Oklahoma City, OK Date Of Lease: January 1, 2017 Lease Expiration: December 31, 2036 Lease Term: Lease Type: Rent Increases: Renewal Options: Twenty (20) Years Fee Simple NNN 10% Increases Every Five (5) years Three (3) Five (5) Year Options, One (1) Four (4) Year Option Annual Rent: Years Monthly Rent Annual Rent Years 1-5 $7, $95, Years 6-10 $8, $104, Years $9, $114, Years $10, $126, Percentage Rent: None Real Estate Taxes: Tenant s Responsibility Insurance (Tenant): Utilities: Repairs and Maintenance: Certificate of Estoppel Right of First Refusal Disclaimer Tenant Shall Maintain, at Tenant s sole Cost and Expense Tenant s Responsibility Tenant s Responsibility Fifteen (15) Days Ten (10) Days Current monthly rent is approximately $8,850. In case of early closing, buyer will receive prorated rent equivalent to the new lease. For example, if closed on December 1st, 2016 buyer will receive Decemeber rent credit of approximately $7,

8 Company Overview Property Name Burger King Property Type Net Leased Quick Service Restaurant Parent Company Trade Name Restaurant Brands International Inc. Ownership Public Credit Rating B+ Rating Agency Standard & Poor s Revenue $1.15 B Net Income $ M Stock Symbol QSR Board NYSE No. of Locations ± 15,000 No. of Employees (All) ± 34,248 Headquartered Miami, FL Web Site Year Founded 1953 Franchise Information For years, Heartland Food Corporation was the 11th largest restaurant franchisee in the US and the second-largest Burger King franchise in the world. In the past five years, Heartland s Burger King sites totaled over 675 locations. When Burger King Worldwide (since acquired by Restaurant Brands International Inc.) began heavily re-structuring operations to franchise-only sites five years ago, Heartland was one of the first companies to take over former corporate sites with a purchase of 121 stores in In Q4 of 2014, rapidly-growing Tri City Foods Inc. purchased 255 of Heartland s locations. Tri City then became the second largest Burger King franchise behind Carrols Corporation. Rick Verity, the operator of the site s current franchise, served as Vice President/Region Director of Carrols Corporation. His 35 year track record of success is perfectly illustrated by the strong performance of this location. Mr. Verity now runs Pamax Management, Inc. operating 30 locations in Oklahoma. This king rules one whopper of a fast-food empire. Burger King Worldwide operates the world s #3 hamburger chain by sales (behind McDonald s and Wendy s) with almost 15,000 restaurants in the US and more than 100 other countries. In addition to its popular Whopper sandwich, the chain offers a selection of burgers, chicken sandwiches, salads, and breakfast items, along with beverages, desserts, and sides. Many of the eateries are standalone locations offering dine-in seating and drive-through services; the chain also includes units in high-traffic locations such as airports and shopping malls. Burger King Worldwide is owned and operated by Restaurant Brands International. hoovers.com Rep. Prototype Photo 8

9 Property Overview THE OFFERING Property Name Burger King Property Address S. Western Avenue Oklahoma City, OK Assessor s Parcel Number SITE DESCRIPTION Number of Stories One Year Built Gross Leasable Area (GLA) ,157 SF Lot Size ± 0.69 Acres (30,050 SF) Type of Ownership Fee Simple Parking ± 50 Surface Spaces Parking Ratio : 1,000 SF Landscaping Professional Topography Generally Level CONSTRUCTION Currently being remodeled to new Burger King prototype Representative Photo 9 PROPERTY DESCRIPTION

10 Bird s Eye S Western Ave ± 27,000 ADT ± 101,000 ADT 10

11 Tenant Map 11 PROPERTY DESCRIPTION

12 Regional Map 12

13 Demographics Report Population 1-Mile 3-Mile 5-Mile 2021 Projection 13, , , Estimate 13, , , Census 12, , , Census 11,459 99, ,114 Growth % 4.63% 4.72% Growth % 5.35% 5.59% Growth % 10.30% 12.73% Households 2021 Projection 5,432 45,465 81, Estimate 5,203 43,602 78, Census 4,985 41,697 74, Census 5,107 40,427 69,600 Growth % 4.27% 4.50% Growth % 4.57% 4.93% Growth % 3.14% 7.40% Income $0 - $15, % 14.70% 14.46% $15,000 - $24, % 13.36% 12.50% $25,000 - $34, % 14.46% 13.75% $35,000 - $49, % 19.91% 18.32% $50,000 - $74, % 18.05% 18.75% $75,000 - $99, % 9.54% 10.13% $100,000 - $124, % 4.68% 5.39% $125,000 - $149, % 2.09% 2.79% $150,000 - $199, % 1.74% 2.10% $200,000 - $249, % 0.61% 0.76% $250,000 - $499, % 0.61% 0.79% $500, % 0.25% 0.27% 2016 Est. Average Household Income $46,731 $51,910 $55, Est. Median Household Income $38,821 $40,639 $42, DEMOGRAPHICS

14 City Overview OKLAHOMA CITY, OKLAHOMA Oklahoma City, known as The Big Friendly is the capital and largest city of the state of Oklahoma. The county seat of Oklahoma County, the city ranks 27th among United States cities in population. The city ranks as the eighth-largest city in the United States by land area. Oklahoma City continues to be ranked on Forbes Best of Lists. Including being ranked in 2008 as the most recession proof city in America. The magazine reported that the city had falling unemployment, one of the strongest housing markets in the country and solid growth in energy, agriculture and manufacturing. It was also ranked in 2013 and again in 2014 as one of the Best Places for Business and Careers. Oklahoma City, lying in the Great Plains region, features one of the largest livestock markets in the world. Oil, natural gas, petroleum products and related industries are the largest sector of the local economy. The economy of Oklahoma City, once just a regional power center of government and energy exploration, has since diversified to include the sectors of information technology, services, health services and administration. The city is headquarters to two Fortune 500 companies, Chesapeake Energy Corporation and Devon Energy Corporation, as well as being home to Love s Travel Stops & Country Stores, which is ranked thirteenth on Forbes list of private companies. The city is situated in the middle of an active oil field and oil derricks dot the capitol grounds. The federal government employs large numbers of workers at Tinker Air Force Base and the United States Department of Transportation s Mike Monroney Aeronautical Center. There are also plenty of attractions in Oklahoma City. The city is home to over 50 legendary attractions including the National Cowboy and Western Museum and the Myriad Botanical Gardens, plus world-class shopping, restaurants and hotels. Tourists come to Oklahoma City from all over to discover the sights and sounds of the Old West in Stockyards City, watch horse races at Remington Park, then have dinner and see a show in historic Bricktown. Visitors can also enjoy the Frontier City Theme Park, designed to duplicate an 1800s frontier town. 14

15 Burger King 7400 S. Western Avenue, Oklahoma City, OK OFFERING MEMORANDUM Aron Cline VP & Sr. Director License No O M aron.cline@matthews.com Jessica Dearnley Broker of Record License No Apollo Street, Suite 150 El Segundo, CA