NNN INVESTMENT - GROUND LEASE - CASH FLOW ONLY new center point COLORADO SPRINGS, CO 80922

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1 NNN INVESTMENT - GROUND LEASE - CASH FLOW ONLY 3690 new center point COLORADO SPRINGS, CO 80922

2 Located On the Busiest Corner of the hottest real estate market in the country PIKE S PEAK

3 jack in the box 3690 new center point colorado springs, co NNN INVESTMENT - GROUND LEASE - CASH FLOW ONLY Contents Investment Overview...4 Location Overview...6 Corporate Profile...10 EXCLUSIVELY OFFERED BY: David Borinstein, Esq. Senior Associate david.borinstein@colliers.com Lic Local Market Expert: Jay Landt Senior Vice President jay.landt@colliers.com Colliers Investment Services Group

4 jack in the box colorado springs, co investment Overview Colliers International is pleased to present the opportunity to invest in an interest in real property guaranteed by a successful Jack in the Box franchisee in one of Colorado s strongest retail markets. The interest for sale here is a ground lease which has been subleased to a franchisee. The fee interest is not for sale. Sierra Monterey Restaurant Systems, Inc. (SMRS) is a subsidiary of Emerald Cascade Restaurant Systems, Inc. (ECRS) which holds exclusive operating rights for all Jack in the Box restaurants in northern Nevada and currently operates more than 20 restaurants. ECRS has been a Jack in the Box franchisee for more than 25 years. SMRS holds exclusive operating rights for all Jack in the Box restaurants in southern Colorado and currently operates 4 restaurants. Both companies have the same executive management team, consisting of individuals with long histories of expertise in restaurant operations, development, and finance. All leases entered into by SMRS are guaranteed by ECRS. A copy of the ECRS financial statement is available during due diligence. Investment Summary Offering Price: $1,063,630 Net Present Value Discount Rate: 6.00% Current Annual Rent: $109, Lease Structure: Sublease Expiration: Building Size: Lot Size: Parking: NNN Ground lease November 30, 2028 (roughly 12 yrs) 3,290 SF 0.67 AC 34 spaces

5 Property Overview Basic Information Address 3690 New Center Pt, Colorado Springs, CO County El Paso Ownership Cash Flow Only APN Year Built 2009 Rentable SF 3,290 Stories 1 Type 3 Star Retail Construction Masonry Ground Lease Cash Flow Date Ground Rent Income Net Rent Per Mo Aug Oct 2018 $7, $16, $9, Nov 2018 $7, $18, $10, Dec Nov 2023 $8, $18, $10, Dec Nov 2028 $8, $19, $11, Demographics 1-Mile 3-Mile 5-Mile 2015 Total Population 11, , , Daytime Population 11,706 93, , Households 4,341 43,674 90, Average HH Income $77,634 $74,264 $71, Median HH Income $64,581 $61,271 $56,845 FINANCIAL SECTION OVERVIEW TITLE 5 jack in the box colorado springs, co 5

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7 jack in the box colorado springs, co Location Overview Colorado Springs Colorado Springs is a home rule municipality that is the county seat and the most populous municipality of El Paso County, Colorado, United States. Colorado Springs is located in the east central portion of the state. It is situated on Fountain Creek and is located 60 miles (97 km) south of the Colorado State Capitol in Denver. At 6,035 feet (1,839 m) the city stands over 1 mile (1.6 km) above sea level, though some areas of the city are significantly higher and lower. Colorado Springs is situated near the base of one of the most famous American mountains, Pikes Peak, rising over 14,000 feet (4,300 m) above the city on the eastern edge of the Southern Rocky Mountains. The city is home to 24 national governing bodies of sport, the United States Olympic Committee and the United States Olympic Training Center. The city had an estimated population of 456,568 in 2015, ranking as the second most populous city in the state of Colorado, behind Denver, and the 40th most populous city in the United States. The Colorado Springs, CO Metropolitan Statistical Area had an estimated population of 686,908 in The city covers square miles (505 km 2 ), making it the most extensive municipality in Colorado. Colorado Springs was ranked number five by U.S. News & World Report on the list of 2016 Best Places to Live in the USA. A large percentage of Colorado Springs economy is based on manufacturing high tech and complex electronic equipment. The high tech sector in the Colorado Springs area has decreased its overall presence from 2000 to 2006 (from around 21,000 down to around 8,000), with notable reductions in information technology and complex electronic equipment. Due to a slowing in tourism, the high tech sector still remains second to the military in terms of total revenue generated and employment. Current trends project the high tech employment ratio will continue to decrease in the near future. High tech corporations with connections to the city include: Verizon Business, a telecommunications firm, had nearly 1300 employees in Hewlett-Packard has a large sales, support, and SAN storage engineering center for the computer industry. Storage Networking Industry Association is the home of the SNIA Technology Center. 7

8 City of colorado springs Did you know that the Royal Gorge Bridge is the highest bridge in the United States at 955 feet above the Arkansas River, and held the record of the highest bridge in the world from 1929 until 2001, when it was surpassed by the Liuguanghe Bridge in China. 8

9 jack in the box colorado springs, co Intel had 250 employees in The facility is now used for the centralized unemployment and social services complex. LSI Corporation designs semiconductors and software that accelerate storage and networking in datacenters and mobile networks. Microchip Technology (formerly Atmel), is a chip fabrication organization. Cypress Semiconductor Colorado Design Center is a chip fabrication research and development site. The Apple Inc. facility was sold to Sanmina-SCI in Recreation & Leisure Colorado Springs, dubbed Olympic City USA, is home to the United States Olympic Training Center and the headquarters of the United States Olympic Committee. In addition, 24 of the United States national federations for individual Olympic sports have their headquarters in Colorado Springs, including: United States or USA bobsled, fencing, skating, basketball, boxing, cycling, judo, field hockey, hockey, swimming, shooting, table tennis, taekwondo, triathlon, volleyball, pentathlon, handball, figure skating and wrestling associations and organizations and the United States Anti-Doping Agency. Further, over 50 national sports organizations (non- Olympic) headquarter in Colorado Springs. Among them, the National Strength and Conditioning Association, Sports Incubator, a host of non-olympic Sports, and more. The city has a particularly long association with the sport of figure skating, having hosted the U.S. Figure Skating Championships six times and the World Figure Skating Championships five times. It is home to the World Figure Skating Museum and Hall of Fame and the Broadmoor Skating Club, a notable training center for the sport. In recent years, the World Arena has hosted skating events such as Skate America and the Four Continents Figure Skating Championship. The Pikes Peak International Hill Climb (PPIHC), also known as The Race to the Clouds, is an annual invitational automobile and motorcycle hill climb to the summit of Pikes Peak, every year on the last Sunday of June. The first running of the Pikes Peak Hill Climb was promoted by Spencer Penrose. Penrose had finished widening the narrow carriage road into a much wider Pikes Peak Highway. He decided to encourage tourists to visit by creating a race to the clouds. The PPIHC takes place on a mile (19.99 km) public toll-road boasting 156 turns, while competitors climb 4,720 ft. (1,440 m.) from the 9,390 ft. (2,862 m.) Start Line at Mile 7 marker on the Pikes Peak Highway to the 14,115 ft. (4,300 m) Finish Line at the mountain s summit. As the drivers climb toward the summit, the thin air slows reflexes and saps competitor s mental and muscle strength in addition to robbing internal combustion engines of up to 30% of the power they are capable of at the Start Line. Competitors and vehicles must be in top shape and condition simply to finish, let alone win. The race is self-sanctioned and is the most diverse one day motorsports event in the world with everything from Sidecars, Motorcycles, Semi-Trucks, and 1,400+hp EV & Unlimited Racers being able to compete in the same event. The highway wasn t completely paved until One of the most popular areas in Colorado Springs is the park on its western edge, Garden of the Gods, considered by many to be the most beautiful park in the world. It is a National Natural Landmark with 300 foot sandstone rock formations often viewed against a backdrop of the snow-capped mountains of Pikes Peak. The park offers a variety of annual events, one of the most popular of which is the Starlight Spectacular; a recreational bike ride held every summer to benefit the Trails and Open Space Coalition of Colorado Springs. Colorado Springs has several major parks, such as Palmer Park, America the Beautiful Park (Confluence Park), Memorial Park, and Monument Valley Park. The Austin Bluffs Park also affords a place of recreation in eastern Colorado Springs. 9

10 jack in the box colorado springs, co jack in the box - corporate Profile Jack in the Box is an American fast-food restaurant chain founded February 21, 1951 by Robert O. Peterson in San Diego, California, where it is headquartered. The chain has 2,200 locations, primarily serving the West Coast of the United States and selected large urban areas in the eastern portion of the US including Texas. Food items include a variety of hamburger and cheeseburger sandwiches. The company also operates the Qdoba Mexican Grill chain. Jack in the Box also offers an Americanized version of ethnic cuisine - such as egg rolls and tacos, along with breakfast burritos and poppers - cream cheese-stuffed, deep-fried jalapeño peppers. New items come in on a rotation every three to four months, including the Philly cheesesteak and the deli-style pannidos (deli trio, ham & turkey, zesty turkey) which were replaced by Jack s ciabatta burger and included the original ciabatta burger and the bacon n cheese ciabatta. Jack in the Box also carries seasonal items such as pumpkin pie shakes, Oreo mint shakes, and eggnog shakes during the Thanksgiving and Christmas holidays. In some locations, local delicacies are a regular part of the menu. Locations in Hawaii, for example, include the Paniolo Breakfast (Portuguese sausage, eggs, and rice platter) and teriyaki chicken and rice bowl. In the Southern United States, the company offers biscuits and sweet tea. In Imperial County, California, some locations sell date shakes, reflecting the crop s ubiquity in the region s farms. In the spring of 2007, Jack in the Box also introduced its sirloin burger and followed this up recently with the sirloin steak melt. Its more recent foray into the deli market was the less-popular Ultimate Club Sandwich which was initially removed in Arizona due to poor sales and has since been phased out at all locations. JACK IN THE BOX Type Public (NASDAQ: JACK) Industry Restaurant Genre Fast Food Founded February 21, 1951 Headquarters San Diego, CA Area Served 21 States in the US Revenue $2.25 B USD (2013) # of Employees 22,000 (2013) Website jackinthebox.com The restaurant rebounded in popularity in 1994, after a highly successful marketing campaign that featured the fictitious Jack in the Box chairman Jack character (voiced by the campaign s creator Dick Sittig), who has a ping pong ball-like head, a yellow clown cap, two blue eyes, a pointy black nose, and a linear red smile that changes with his emotions, and is dressed in a business suit. 10

11 Confidentiality & DISCLAIMER This Confidential Offering Memorandum (the Memorandum ) has been prepared and presented to the recipient (the Recipient ) by Colliers International ( Colliers ) as part of Colliers efforts to market for sale the real property located at 3690 New Center Pt, Colorado Springs, CO (the Property ). Colliers is the exclusive agent and broker for the owner(s) of the Property (the Owner ). Colliers is providing this Memorandum and the material contained in it to the Recipient solely to assist the Recipient in determining whether the Recipient is interested in potentially purchasing all or part of the Property. Colliers also is providing this Memorandum and the material in it to the Recipient with the understanding that the Recipient will independently investigate those matters that it deems necessary and appropriate to evaluate the Property and that the Recipient will rely only on its own investigation, and not on Colliers, the Owner or this Memorandum, in determining whether to purchase the Property. The Recipient s use of this Memorandum and the material in it is strictly governed by the terms and conditions of the Registration and Confidentiality Agreement that the Recipient previously executed and delivered to Colliers. Please Note the Following: Colliers, the Owner and their respective agents, employees, representatives, property managers, officers, directors, shareholders, members, managers, partners, join venturers, corporate parents or controlling entities, subsidiaries, affiliates, assigns and predecessors and successors-in-interest make no representations or warranties about the accuracy, correctness or completeness of the information contained in this Memorandum. The Recipient is urged not to rely on the information contained in this Memorandum and to make an independent investigation of all matters relating to the Property. This Memorandum includes statements and estimates provided by or to Colliers and/or the Owner regarding the Property. Those statements and estimates may or may not be accurate, correct or complete. Nothing contained in this Memorandum should be construed as a representation or warranty about the accuracy, correctness or completeness of such statements and estimates. Further, nothing contained in this Memorandum should be construed as representation or warranty about any aspect of the Property, including, without limitation, the Property s (1) past, current or future performance, income, uses or occupancy, (2) past, current or prospective tenants, (3) physical condition, (4) compliance or non-compliance with any permit, license, law, regulation, rule, guideline or ordinance, or (5) appropriateness for any particular purpose, investment, use or occupancy. Again, the Recipient is urged not to rely on this Memorandum and the statements and estimates in it and to make an independent investigation regarding the Property and the statements and estimates contained herein. This Memorandum may include statements regarding, references to, or summaries of, the nature, scope or content of contracts and/or other documents relating to the Property. Those statements, references or summaries may or may not be accurate, correct or complete. Additionally, Colliers may not have referenced or included summaries of each and every contract and/or other document that the Recipient might determine is relevant to its evaluation of the Property. Nothing contained in this Memorandum should be construed as a representation or warranty about the accuracy, correctness or completeness of such statements, representations or summaries. On request and as available, and subject to the Owner s consent, Colliers will provide the Recipient with copies of all referenced contracts and other documents. Colliers assumes no obligation to supplement or modify the information contained in this Memorandum to reflect events or conditions occurring on or after the date of its preparation of this Memorandum. This Memorandum does not constitute an offer to sell, or a solicitation of an offer to buy, an interest in the Property. Nothing contained in this Memorandum may be construed to constitute legal or tax advice to a Recipient concerning the Property. More detailed information regarding the anticipated terms, conditions and timing of any offering by the Owner relating to the Property will be provided in due course by separate communication. Colliers and/or the Owner reserve the right to engage at any time in discussions or negotiations with one or more recipients of this Memorandum and/or other prospective purchasers of the Property without notice or other obligation to the Recipient. The Owner reserves the right to change the terms of any offering relating to the Property or to terminate without notice that offering. The Owner also reserves the right to operate the Property in its sole and absolute discretion prior to the completion of any sale of the Property. Colliers reserves the right to require the return of this Memorandum and the material in it and any other material provided by Colliers to the Recipient at any time. Acceptance of this Memorandum by the Recipient constitutes acceptance of the terms and conditions outlined above. jack in the box colorado springs, co SECTION TITLE

12 3690 new center point Colorado Springs, CO EXCLUSIVELY OFFERED BY: Local Market Expert: David Borinstein, Esq. Senior Associate Lic Jay Landt Senior Vice President Colliers Investment Services Group 101 SECOND STREET 11TH FLOOR SAN FRANCISCO, CA 94105