™

CARL’S JR.4 2 0 M E R H A R A V E

F A I R B A N K S , A KO F F E R I N G

M E M O R A N D U M

R E P R E S E N TAT I V E P H O T O

LISTED BY

PAMELA THROOPBROKER OF RECORDLIC # RECB6332 (AK)

BROKER OF RECORD

03

04

08

EXECUTIVE SUMMARY

FINANCIAL OVERVIEW

AREA OVERVIEW

TENANT OVERVIEW

CONTENTS

05

ANDREW IVANKOVICHAssociate

andrew. ivankovich@matthews.comDIR (214) 692-2037MOB (626) 807-3586LIC # 678815 (TX)

BRADEN CROCKETTAssociate VP & Director

braden.crockett@matthews.comDIR (214) 692-2040MOB (714) 345-6206LIC # 01946071 (CA)

R E P R E S E N TAT I V E P H O T O

CARL’S JR. | 3

• Absolute NNN Lease - Zero Landlord Responsibilities

• Guaranteed By CJS Of Fairbanks, LLC - Two Unit Operator

• Brand New 20 Year Lease to Commence At the Close of Escrow

• 7.50% Increases Every 5 Years - Providing a Solid Hedge Against Inflation

• Stellar Performance - Sales 80% Above the National Average

• Exceptional Retail Synergy - Major Players like Wal-Mart, Home Depot, Lowe’s, and Fred Meyer Provide Carl’s Jr. With Consistent Traffic

• Located just off Johansen Expressway (25,000 VPD) - Ideal Visibility

• Purchase Price Below Replacement Cost - Land and Construction Are Incredibly Expensive in Alaska

• Excellent Demographics - 2017 Average Household Income in a 1-Mile, 3-Mile, and 5-Mile Radius all above $75,000

• Income Tax-Free State

INVESTMENT HIGHLIGHTS

E X E C U T I V E O V E R V I E W

TENANT SUMMARY

Tenant Trade Name Carl’s Jr.

Type of Ownership Fee Simple

Guarantee CJS of Fairbanks, LLC

Lease Type Absolute NNN

Roof & Structure Tenant Responsibility

Original Lease Term 20 Years

Rent Commencement Date Close of Escrow

Lease Expiration Date Close of Escrow

Increases 7.50% Every 5 Years

Options Three, 5-Year Options

ANNUALIZED OPERATING DATA

Year Proposed Rent Rent/SF Increases $2,698,057.00 1 $161,883.42 $45.86

$161,883.42 2 $161,883.42 $45.86

3 $161,883.42 $45.86

4 $161,883.42 $45.86

5 $161,883.42 $45.86

6 $174,024.68 $49.30 7.50%

7 $174,024.68 $49.30

8 $174,024.68 $49.30

9 $174,024.68 $49.30

10 $174,024.68 $49.30

11 $187,076.53 $53.00 7.50%

12 $187,076.53 $53.00

13 $187,076.53 $53.00

14 $187,076.53 $53.00

15 $187,076.53 $53.00

16 $201,107.27 $56.97 7.50%

17 $201,107.27 $56.97

18 $201,107.27 $56.97

19 $201,107.27 $56.97

20 $201,107.27 $56.97

F I N A N C I A L O V E R V I E W

4 | OFFERING MEMORANDUM

LIST PRICE

$2,689,057

CAP RATE

6.00%

TERM REMAINING

± 20 YEARS

FINANCIAL HIGHLIGHTS

CARL’S JR. | 5

Carl’s Jr. is an American-based fast food restaurant chain operated by CKE Restaurants Holdings, Inc., with locations primarily in the Western and Southwestern United States. In the spirit of the company’s founder, Carl Karcher, CKE believes it can best share in its success by offering support to its neighbors through its scholarship and charitable giving programs, including the Stars for Heroes campaign which raised $1 Million in 2011. CKE is also working toward greater sustainability with the help of company-wide initiatives, including the corporate Green Team.

STRATEGYWith over 3,600 total CKE franchised and company-owned restaurants, and more than 1,500 Carl’s Jr. specific, CKE Restaurants Holdings, Inc. is dedicated to helping franchisees build growing restaurant operations that are sustainable for the long term. To this end, the strategy and core positioning of the Carl’s Jr. banner is oriented to building top-line sales that support franchise profitability via premium product strategy, strong restaurant fundamentals, and cutting-edge advertising. With best-in-class menus, innovative systems, and outstanding brand recognition, the company is poised for sustained growth around the world.

GEOGRAPHIC OUTREACHAs of March 2016, CKE has a total of 3,664 franchised or company-operated restaurants in 44 states and 38 foreign countries and U.S. territories. Carl’s Jr. has announced plans to expand in Ontario, Canada’s “Golden Horseshoe,” a territory that includes Toronto, Mississauga, Oakville, Burlington, Hamilton, Brantford, and London.

CARL’S JR.

P A R E N T C O M P A N Y T R A D E N A M E C K E R E S T A U R A N T S H O L D I N G S , I N C .

H E A D Q U A R T E R E DC A R P I N T E R I A , C A L I F O R N I A

W E B S I T EW W W . C A R L S J R . C O M

# O F L O C A T I O N S± 1 , 5 0 0

# O F E M P L O Y E E S± 2 3 , 0 0 0

O W N E R S H I PP R I V A T E

Y E A R F O U N D E D1 9 4 1

T E N A N T O V E R V I E W

Oceanside Blvd ± 31,792

Col

lege

Blv

d ±

40,11

6

TENANT SUMMARY

Property Address 420 Merhar AveFairbanks, AK 99701

SITE DESCRIPTIONNumber of Stories One

Type of Ownership Fee Simple

Year Built 2006

GLA ± 3,530 SF

Lot Size ± 0.92 Acres (40,000 SF)

Landscaping Professional

Topography Generally Level

THE OFFERING

P R O P E R T Y O V E R V I E W

THE PARCEL

6 | OFFERING MEMORANDUM

CARL’S JR. | 7

SURRO UNDING TENANTS

A R E AO V E R V I E W

5-MILE DEMOGRAPHICS

FAIRBANKS, AK

Alaska’s second-largest city – Hub of the Interior, Gateway to the Bush, the Golden Heart City – Fairbanks is as diverse and distinct as any place in Alaska. Fairbanks is a home rule city and the borough seat of the Fairbanks North Star Borough in the U.S. state of Alaska. The city features a university, an Army Base, and an Air Force Base and is known for dog mushing, and northern lights. Fairbanks is home to the University of Alaska Fairbanks, the oldest of Alaska’s current universities.

Fairbanks is the largest city in the Interior region of Alaska. 2014 estimates put the population of the city proper at 32,469, and 2016 estimates put the population of the Fairbanks North Star Borough at 100,605, making it the second most populous metropolitan area in Alaska (after Anchorage).

POPULATION

49,287

HOUSEHOLDS18,316

INCOME

$86,443

8 | OFFERING MEMORANDUM

Fairbanks is an economic hub for Interior Alaska. Through its transportation system and developed infrastructure and services, Fairbanks impacts nearby communities. Nearby Fort Wainwright and Eielson Air Force Base are both substantial influences in the region, employing more than one-third of the workforce in the area. Tourism, healthcare, oil, and mining are also prominent areas for Fairbanks’s economy.

ECONOMY

Not only is Fairbanks a beautiful and intriguing place to live, it also offers a competitive quality of life advantage many states can’t even touch. This is a city where you can grow a business and raise a family; a place where people don’t come to find themselves, but rather to create themselves.

Over 20 hours of summer sunlight allows plenty of play time. Exploring the vast wilderness at our doorstep, cross-country skiing, snowmobiling and other activities, all make for world-class winter enjoyment. All this in a town where 95 percent of the people have less than a twenty-minute commute to work.

QUALITY OF LIFE

CARL’S JR. | 9

ALASKA’S $43 BILLION NATURAL GAS PIPELINE MEGAPROJECT

Alaska Gasline Development Corp., the state of Alaska, Sinopec, China Investment Corp. and the Bank of China have signed an agreement to advance a $43 billion natural gas pipeline in Alaska. This pipeline has been a dream for Alaskans for years, seen as a way to provide economic certainty as oil production from the North Slope declines.

The natural-gas pipeline is intended to tap into the rich natural-gas reserves on the North Slope. Similar in length to the oil pipeline, it would transport the gas 800 miles to the coast on the Kenai Peninsula, where it would be liquefied and shipped to Asia. Estimates have put proven gas reserves on the North Slope overall at 35 trillion cubic feet.

The pipeline construction has the potential to create as many as 12,000 U.S. jobs and could possibly create a trade deficit between the United States and Asia by $10 billion each year. The pipeline would also provide China with cleaner energy. With an estimated revenue between $8 million and $10 billion each year, about 75 percent of the LNG would go to China, with Alaska retaining 25 percent (roughly $250 million) for other regional markets in Asia, including Japan, South Korea, and Vietnam.

10 | OFFERING MEMORANDUM

EIELSON AIR FORCE BASE

Eielson Air Force Base occupies 63,195 acres southeast of Fairbanks, Alaska. The runway is oriented north to south and is 14,507 feet long. It was extended to its present length in the 1950s to accommodate B-36 aircraft, and is the second longest runway in North America.

About 2,500 military people work at Eielson, which includes more than 340 Air Force Reserve and Air National Guard servicemembers. The base has approximately 930 houses and 387 dormitory rooms for the more than 2,000 military and family members who live on base. An additional 1,100 active duty, Reserve and Guard servicemembers and their families live off-base. More than 500 retirees from all branches of the military reside in the area. Rounding out the total military-related population are about 480 civilian employees.

The total payroll for active duty military employees is about $132 million. The base spent more than $79 million for constuction, services and procurement of materials, equipment and supplies in fiscal year 2011. More than 1,800 jobs were created valued at approximately $41 million.

POPULATION

ECONOMIC IMPACT

CARL’S JR. | 11

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Carl’s Jr. located at 420 Merhar Ave, Fairbanks, AK 99701 (“Property”) . I t has been prepared by Matthews Real Estate Investment Services. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Real Estate Investment Services. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Real Estate Investment Services expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Real Estate Investment Services or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T

EXCLUSIVELY LISTED BY

PAMELA THROOPBROKER OF RECORDLIC # RECB6332 (AK)

BROKER OF RECORD

™

CARL’S JR.4 2 0 M E R H A R A V E | F A I R B A N K S , A K

BRADEN CROCKETTASSOCIATE VP & DIRECTORbraden.crockett@matthews.comDIR (214) 692-2040MOB (714) 345-6206LIC # 01946071 (CA)

ANDREW IVANKOVICHASSOCIATEandrew. ivankovich@matthews.comDIR (214) 692-2037MOB (626) 807-3586LIC # 678815 (TX)