Long John Silver s / A&W

Long John Silver s / A&W 1180 South Babcock, Melbourne, FL 32901 Shawn Bakke 213 532 3282 shawn.bakke@colliers.com Offering Memorandum - For Sale Investment Opportunity BURGER KING COLLIERS INTERNATIONAL 1

Table of Contents > EXECUTIVE OVERVIEW Offering Summary... 4 Investment Highlights & Summary... 4 > FINANCIAL OVERVIEW Investment Summary... 6 Cash Flows... 6 > TENANT OVerviEW Tenant Profile... 8 > Property OVERVIEW Property Aerial... 11 Regional Map...12 Surrounding Property Photos...13 > TRADE AREA OVERVIEW Location Summary...15 > COMPARABLE PROPERTIES Sold Comparable Properties... 18

FINANCIAL INFORMATION Long John Silver s / A&W > Executive Summary Offering Summary...4 Investment Highlights & Summary...4 LONG JOHN SILVER S / A&W RESTAURANT COLLIERS INTERNATIONAL 3

EXECUTIVE OVERVIEW Offering Summary > Pricing SUMMARY Property Address...1180 South Babcock, Melbourne, FL Year Built / Remodeled... 1976 / 2003 Building Size (SF)... ±2,060 Lot Size (Acres/SF)... 1.21 / 52,708 Purchase Price/PSF...$1,083,871 / $526.15 Colliers International presents for sale the fee simple interest in a quick service Long John Silver s / A&W restaurant ( Property ), located in Melbourne, FL. The site is situated near the beach and a number of office buildings. In addition a grocery anchored strip shopping center lies across the street. Cap Rate... 7.75% $/SF Land Gross... $20.56 Average Cap During Lease...12.12% Unleveraged IRR...13.28% > 2011 Rent Annual Base Rent...$84,000 Asset Highlights:»» $1,083,871 Price, 13.28% Unleveraged IRR»» Located near Hilton Hotel, Walgreen s, and Wendy s which will provide significant traffic»» Owned by experienced, multi-state Pizza Hut, KFC, and LJS operator, lease guaranteed by three (3) unit Florida LLC ** Tenant shall pay a monthly percentage rent of seven percent (7.0%) of gross sales gross sales exceed minimum rent of $7,000/month. This clause shall be in effect until January 31, 2013** 4 LONG JOHN SILVER S / A&W RESTAURANT

FINANCIAL INFORMATION Long John Silver s / A&W > Financial Overview Investment Summary...6 Cash Flows...6 LONG JOHN SILVER S / A&W RESTAURANT COLLIERS INTERNATIONAL 5

FINANCIAL OVERVIEW Purchase Assumptions Taxable Income Purchase Price $1,083,871 Cap Rate - Year 1 7.75% Price PSF $526.15 $/SF Land Gross $20.56 Avg Cap During Lease 12.12% Unleveraged IRR 13.28% Building Value (80%): $867,097 NOI: $84,000 (Less Loan Interest) $(45,794) (Less Depreciation-Straight Line, 39 yrs) $(22,233) Taxable Income: $15,973 UNLEVERAGED Cash Flow Analysis Investment Years Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Lease Years Acquisition Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Reversion Acquisition Cost $(1,083,871) NOI $84,000 $84,000 $121,044 $121,044 $127,096 $127,096 $127,096 $127,096 $127,096 $133,451 $133,451 Exit Cap Cap Rate 7.75% 7.75% 11.17% 11.17% 11.73% 11.73% 11.73% 11.73% 11.73% 12.31% 8.00% Sales Proceeds $1,668,138 Unleveraged Cash Flows $(1,083,871) $84,000 $84,000 $121,044 $121,044 $127,096 $127,096 $127,096 $127,096 $127,096 $1,801,589 Taxable Income Investment Years Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Net Operating Income: $84,000 $84,000 $121,044 $121,044 $127,096 $127,096 $127,096 $127,096 $127,096 $133,451 $133,451 (Less Loan Interest) $(45,794) $(45,016) $(44,188) $(43,306) $(42,366) $(41,366) $(40,300) $(39,166) $(37,957) $(36,670) $(35,300) (Less Depreciation) $(22,233) $(22,233) $(22,233) $(22,233) $(22,233) $(22,233) $(22,233) $(22,233) $(22,233) $(22,233) $(22,233) Taxable Income: $15,973 $16,751 $54,623 $55,505 $62,496 $63,497 $64,562 $65,697 $66,905 $74,547 $75,918 6 LONG JOHN SILVER S / A&W RESTAURANT

FINANCIAL INFORMATION Long John Silver s / A&W > Tenant Overview Tenant Profile...8 LONG JOHN SILVER S / A&W RESTAURANT COLLIERS INTERNATIONAL 7

TENANT OVERVIEW Tenant Profile Lease Summary Tenant Name: Raheel Foods Florida Lease Commencement: 6/17/2005 Lease Expiration: 6/17/2025 Original Lease Term: 20 years Option Term: Four 5-year Rent Increases: 5% every 5 Gross Leaseable Area: 2,060 SF Headquartered: Los Angeles, CA No. of Locations: 3 ** Tenant shall pay a monthly percentage rent of seven percent (7.0%) of gross sales gross sales exceed minimum rent of $7,000/month. This clause shall be in effect until January 31, 2013** Raheel Foods Florida is one of four quick service restaurant ( QSR ) companies owned and operated by Mr. Syed Raheel. base rent Lease Years Annual Rent Monthly Rent Monthly Rent / SF rent Incr (5%) 6-8 $84,000 $7,000 $3.40-9-10 $121,044 $10,087 $4.90 $37,044 11-15 $127,096 $10,591 $5.14 $6,052 16-20 $133,451 $11,121 $5.40 $6,355 option rent 21-25 $140,123 $11,677 $5.67 $6,673 26-30 $147,130 $12,261 $5.95 $7,006 31-36 $154,486 $12,874 $6.25 $7,356 36-40 $162,210 $13,518 $6.56 $7,724 They operate Pizza Hut, KFC, Long John Silver s and A&W properties. In total, Mr. Raheel operates thirty-one (31) restaurants in Arkansas, Florida, Iowa and Michigan, twenty-five (25) of which are branded KFC. Raheel Foods Florida consists of three (3) stores. LONG JOHN SILVER S / A&W RESTAURANT COLLIERS INTERNATIONAL 8

TENANT OVERVIEW and hushpuppies. Tenant Information Long John Silver s franchises more than 1,200 nautically themed eateries offering such menu items as batter-dipped fish, chicken, shrimp, In the News... Yum! Brands hits all-time high The Long John Silver s chain operates primarily in the US though it does have a small number of international locations, including 31 stores operating in Singapore, more than any other single city in the Yum Brands Information Yum! Brands, Inc., based in Louisville, Ky., is the world s largest restaurant company in terms of system restaurants with more than 37,000 restaurants in more than 110 countries. Consequently, the company is ranked #239 on the Fortune 500 List, with nearly $11 billion in revenue in 2009. 4/25/11 - Alicia Kelso Shares in Pizza Hut parent Yum! Brands Inc. closed at $53.65 Thursday, the company s all-time high set into motion after a strong earnings report boosted by growth in China. Yum! traded at a 52-week low of $38.53 in July 2010. Yum Brands net income 4/21/11 earnings up 10 percent Yum! Brands Inc. reported results for the first quarter ended March 19, which included a net income of $264 million, a 10 percent increase from the same period last year at $241 million. Revenue increased by nearly 3 percent from Q110. The company was given a huge boost from its China Division, which was up 28 percent. Of the 223 restaurants opened during Q111, 92 of them were in China. LONG JOHN SILVER S / A&W RESTAURANT COLLIERS INTERNATIONAL 9

FINANCIAL INFORMATION Long John Silver s / A&W > Property Overview Property Aerial... 11 Regional Map... 12 Surrounding Property Photos... 13 LONG JOHN SILVER S / A&W RESTAURANT COLLIERS INTERNATIONAL 10

PROPERTY OVERVIEW Property Aerial Subject Property LONG JOHN SILVER S / A&W RESTAURANT COLLIERS INTERNATIONAL 11

PROPERTY OVERVIEW Local Map Melbourne International Airport Subject Property Melbourne Golf and Country Club Average Daily Traffic: 33,5000 LONG JOHN SILVER S / A&W RESTAURANT COLLIERS INTERNATIONAL 12

PROPERTY OVERVIEW Surrounding Property Photos Clockwise from upper left:»» Publix Anchored Center»» Bell South Office Parkand Hilton Hotel»» Mebourne High School»» Wendy s LONG JOHN SILVER S / A&W RESTAURANT COLLIERS INTERNATIONAL 13

FINANCIAL INFORMATION Long John Silver s / A&W > Trade Area Overview Location Summary... 15 LONG JOHN SILVER S / A&W RESTAURANT COLLIERS INTERNATIONAL 14

TRADE AREA OVERVIEW Trade Area Population 1 - Mile 3 - Miles 5 - Miles Proj Growth 2015-2010 3.00% 4.77% 5.34% 2015 Projection 6,018 44,862 130,604 2010 Estimate 5,843 42,821 123,983 2000 Census 5,660 39,053 111,580 Historical Annual Growth 1990-2000 11.09% 2.43% 10.46% 2000 Average HH Income $32,582 $43,931 $48,382 Melbourne, FL *Hilton - Melbourne, FL The City of Melbourne is located on east central Florida s Space Coast. Melbourne is about an hour s drive south of the Kennedy Space Center, and 1-1/2 hours due east of Disney World. The City is in the southern portion of Brevard County. Interstate-95 runs through the county from northto-south. While most of Melbourne is located on the Florida mainland, a small portion is located on a barrier island. The property is located on southbound side of Babcock St., (between two lighted intersections) which appears to originate from US 1 just east of the Melbourne International Airport. Geographically, the property is located near the ocean and just southeast of Melbourne International Airport. The adjacent properties are as follows: west large office building occupied by Bellsouth and Suntrust, east Melbourne High School, North Wendy s, south BB&T local bank branch. Other nearby properties include a Publix Anchored retail center (10-15 other stores), Sears, Fazoles, Hilton Hotel, and a local auto shop. This property was remodeled in 2003. LONG JOHN SILVER S / A&W RESTAURANT COLLIERS INTERNATIONAL 15

TRADE PROPERTY AREA OVERVIEW Trade Area Population 10 - Mile 15 - Miles 20 - Miles Projected Growth (2010-2015) 7.49% 8.29% 7.61% Projected Population (2015) 289,722 348,342 424,357 Estimated Population (2010) 269,527 321,677 394,359 Census Population (2000) 230,610 263,634 331,807 Historical Annual Growth 1990-2010 19.16% 25.39% 21.70% Avg Household Income $51,722 $53,091 $52,219 Population Density 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 Projected Population (2015) Estimated Population (2010) Census Population (2000) Location Highlights On US Hwy 507 Across from Melbourne High School Next to Wendy s, Hilton, and Bell South Office Park Across from Publix Anchored Center Less than One Mile to the Beach *Downtown Melbourne 0 1 - Mile 3 - Miles 5 - Miles 10 - Mile 15 - Miles 20 - Miles LONG JOHN SILVER S / A&W RESTAURANT COLLIERS INTERNATIONAL 16

FINANCIAL INFORMATION Long John Silver s / A&W > Comparable Properties Sold Comparable Properties... 18 LONG JOHN SILVER S / A&W RESTAURANT COLLIERS INTERNATIONAL 17

COMPARABLE PROPERTIES Sold Comparable Properties BURGER KING 5609 SE Abshier Blvd Belleview, FL BURGER KING 4976 E Silver Springs blvd Ocala, FL Price Down Payment Rentable SF Price/Square Foot CAP Rate Lot Size Year Built $1,533,718 $403,378 (40%) 2,079 $485.06 8.15% 0.66 1999 Price Rentable SF Price/Square Foot CAP Rate Lot Size Year Built $1,460,595 3,909 $373.65 8.15% 1.65 Acres 2000 No. of Locations Lease Type Lease Term Increases Options Lease Guarantor Ownership 22 NNN 20 Year Term 8% every 5 Four 5-year Franchisee Private This quick service restaurant is surrounded by other retail tenants as well as a Super 8 and Days Inn, which will generate an ample supply of customers. BURGER KING 832 e STATE ROAD 44 wildwood, FL Price Down Payment Rentable SF Price/Square Foot CAP Rate Lot Size Year Built $1,225,620 $515,551 2,190 $588.53 8.15% 0.85 Acres 1983 This quick service restaurant is surrounded by other retail tenants as well as a Super 8 and Days Inn, which will generate an ample supply of customers. LONG JOHN SILVER S / A&W RESTAURANT COLLIERS INTERNATIONAL 18

TENANT OVERVIEW Confidentiality & Disclaimer Statement This Offering Memorandum contains select information pertaining to the business and affairs of the Property at 1180 South Babcock, Melbourne, FL. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. 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. It is not to be used for any other purpose or made available to any other person without the written consent of Owner or Colliers International. The material is based in part upon information supplied by the Owner and in part upon financial information obtained by Colliers International from sources it deems reliable. Neither Owner, nor their officers, employees, or agents make any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. 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. By acknowledging your receipt of this Offering Memorandum from Colliers International, you agree: 1) The Offering Memorandum and its contents are confidential; 2) You will hold it and treat it in the strictest of confidence; and 3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Owner. Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of Long John Silver s or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. 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 Owner or Colliers International 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. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. LONG JOHN SILVER S / A&W RESTAURANT COLLIERS INTERNATIONAL 19

Long John Silver s / A&W Offering Memorandum FOR MORE INFORMATION: Shawn Bakke 213 532 3282 shawn.bakke@colliers.com Gregory Ching 213 532 3209 gregory.ching@colliers.com COLLIERS INTERNATIONAL 865 S. Figueroa Street, Suite 3500 Los Angeles, CA 90017 213 627 1214 Phone