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MCDONALD’S GROUND LEASE555 JURASSIC COURT | FRUITA, CO 81521

I n ve s tmen t P rope r t i e s | Ne t Lease Prope r t y G roup

www.cbre.com CAPITAL MARKETS

S ing le Tenan t Abso lu t e NNN Inves tmen t O f f e r i ng

FOR MORE INFORMAT ION PLEASE CONTACT:

LEAD INVESTMENT CONTACT COLORADO OFFICE CONTACT

2415 East Camelback RoadPhoenix, Arizona 85016www.cbre.com/phoenix

01 Investment Overview

Investment Summary and Highlights

Pricing and Lease Summary

Tenant Overview

02 Property Overview

Property Photography

Aerial Photography

Area Maps

03 Market Overview

Fruita, Colorado Area Overview

Demographics

TABLE OF CONTENTS

JOSEPH R. COMPAGNOFirst Vice President Investment Properties Net Lease Property Group CBRE | Capital Markets 602.735.1733 [email protected] www.cbre.com/joe.compagno www.cbre.com/nlpgphoenix

MATTHEW HENRICHSFirst Vice PresidentInvestment PropertiesCBRE | Capital [email protected]

01 Investment Overview Investment Summary and Highlights Pricing and Lease Summary Tenant Overview

4MCDONALDS

CBRE has exclusively listed for sale this single tenant McDonald’s in Fruita, Colorado, which is 12 miles West of Grand Junction, Colorado.

This corporate McDonald’s offering consists of an absolute triple net (NNN) single tenant ground lease. McDonald’s has been located at this site in Fruita, since 1994. McDonald’s just renewed their lease for another 5 years, and finished updating and remodeling the McDonald’s building to current standards. The building is estimated to be 4,052 rentable square feet on approximately 49,658 square feet of land. There is one (1), five (5) year option remaining, and the rent in the option is equivalent to ten percent (10%) of the Fair Market Value of the Demised Premises exclusive of any and all improvements. The investment opportunity offers a very secure lease with the most well-known restaurant company in the world. This investment offers a corporate guarantee by McDonald’s USA, LLC, a Delaware limited liability company. McDonald’s is publicly traded on the New York Stock Exchange with stock symbol “MCD”, and has an investment grade credit rating of “A.” McDonald’s has approximately 36,000 locations in 100 countries worldwide. There are over 1,900,000 people that work for McDonald’s and its franchisees.

The City of Fruita is located at the base of the scenic Colorado National Monument along the Colorado River. Fruita was voted a “Top Adventure Town” by Elevation Outdoors Magazine in 2015. Fruita is considered by many to be one of the premier mountain biking locations in Colorado. The Colorado National Monument is a stunning 32-square mile monument that includes a 23 mile scenic drive, 19 overlooks and over 40 miles of hiking trails. The Museum of Western Colorado: Dinosaur Journey is located across the street from the McDonalds and is a main attraction for the area. The museum provides a hands-on interactive experience for learning about the history of dinosaurs in western Colorado and surrounding areas.

Fruita sits along I-70, which is the main highway from Utah to Denver, Colorado. Grand Junction is only 12 miles away from Fruita via the I-70. Grand Junction, Colorado is the largest city between Denver, Colorado and Salt Lake City, Utah. The metropolitan area of Grand Junction has over 100,000 people.

INVESTMENT SUMMARY

INVESTMENT OVERVIEW

5MCDONALDS

• McDonald’s has been located at this site, since 1994 and just renewed their lease for another 5 years

• Absolute NNN lease, no landlord responsibilities

• McDonald’s remodeled the interior and exterior of this property earlier in 2015, showing their strong commitment for this location

• Excellent freeway location

• Average household income in a five mile radius is a strong $74,449

• McDonald’s is publically traded (NYSE Symbol: MCD) with a S&P “A” investment grade credit rating

• The City of Fruita is located at the base of the scenic Colorado National Monument along the Colorado River

• This McDonald’s is located across the street from the Dinosaur Journey: Museum of Western Colorado, a busy tourist destination

• Fruita was voted a “Top Adventure Town” by Elevation Outdoors Magazine in 2015

INVESTMENT OVERVIEW

INVESTMENT HIGHLIGHTS

6MCDONALDS

PRICING SUMMARY

Price: $1,228,571

Cap Rate: 5.25%

Year Built: 1994 / 2015 Remodel

Rentable SF: ±4,052

Land SF: ±49,658

Parcel Number: 2697-184-08-005

Drive-thru: Yes, Double Lane

Parking Spaces: 43 Spaces

LEASE SUMMARY

Tenant's Name: McDonald's

Company Type: Public

Lease Guarantor: McDonald's USA, LLC, a Delaware limited liability company

NYSE Stock Symbol: MCD

Tenant S & P Credit Rating: A (Investment Grade)

Net Operating Income: $64,500

Lease Type: Absolute NNN

Lease Commencement: 9/12/1994

Lease Expiration: 11/30/2020

Lease Term Remaining: 5 Years (1st Option Period)

Rent Increases:Equivalent to ten percent (10%) of the Fair Market Value of the Demised Premises exclusive of any and all improvements.

Options to Renew: One, Five Year Option

First Right of Refusal: Yes, 30 Days

PRICING AND LEASE SUMMARY555 JURASSIC COURT | FRUITA, CO 81521

INVESTMENT OVERVIEW

7MCDONALDS

TENANT OVERVIEW

INVESTMENT OVERVIEW

McDonald’s

NYSE Stock Symbol: MCD

Standard & Poor’s Credit Rating: A (Investment Grade)

Revenue (FY 2013) $28.3 Billion

Total Employees: ±1,900,000

Total Number of Locations: ±35,000

McDonald’s brand mission is to their customers’ favorite place and way to eat and drink. Their worldwide operations are aligned around a global strategy called the Plan to Win, which center on an exceptional customer experience – People, Products, Place, Price and Promotion. McDonald’s is committed to continuously improving their operations and enhancing their customers’ experience.

McDonald’s was founded in 1940 and their global headquarters is based in Oak Brook, Illinois. McDonald’s has approximately 35,000 locations in over 100 countries worldwide. Over 1,900,000 people work for McDonald’s and it franchisees.

02 Property Overview Property Photography Aerial Photography Area Maps

9MCDONALDS

PROPERTY PHOTOGRAPHY

PROPERTY OVERVIEW

10MCDONALDS

AERIAL PHOTOGRAPHY

PROPERTY OVERVIEW

Starvin Arvin’s Truck Stop

Welcome Center

RAPTOR ROAD

JURASSIC AVENUEJURASSIC COURT

Western Colorado

Truck Center

Colorado State Patrol

Dinosaur Journey - Museum

of Western Colorado

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SUBJECT PROPERTY

11MCDONALDS

FRUITA, COLORADO AREA MAP

PROPERTY OVERVIEW

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SUBJECT PROPERTY

12MCDONALDS

REGIONAL MAP

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SUBJECT PROPERTY

555 Jurassic CourtFruita, CO 81521

Grand Junction

PROPERTY OVERVIEW

03 Market Overview

Fruita, Colorado Area Overview

Demographics

14MCDONALDSMARKET OVERVIEW

FRUITA, COLORADO AREA

The City of Fruita is located at the base of the scenic Colorado National Monument along the Colorado River. The city was named after the fruit trees William Pabor envisioned being planted in the city when he founded it in 1884. Fruita sits along the I-70, which is a major US highway that runs from Maryland to Utah. The I-70 and I-15 are the main highways from Utah, and Salt Lake City to Denver, Colorado.

ATTRACTIONSFruita was voted a “Top Adventure Town” by Elevation Outdoors Magazine in 2015. Fruita is considered by many to be one of the premier mountain biking locations in Colorado. The area terrain is perfect for riders of all skill levels.

COLORADO NATIONAL MONUMENTThe Colorado National Monument is a stunning 32-square mile monument that includes a 23 mile scenic drive, 19 overlooks and over 40 miles of

hiking trails. The monument boasts magnificent canyons cut into deep sandstone, amazing rock formations and array of wildlife. Visitors can enjoy activities such as hiking, horseback riding, camping, biking, rock climbing and scenic drives.

COLORADO RIVERThe Colorado River provides for agricultural richness in the area but also for exciting activities. Locals and tourists can enjoy white water rafting. The Ruby-Horse Thief section of the river near Fruita is considered by Elevation Outdoors Magazine to be one of the best family rafting sites in the state.

THE MUSEUM OF WESTERN COLORADO: DINOSAUR JOURNEYThe area is rich in dinosaur history. Fruita has self-guided tours of dinosaur excavations as well as a dinosaur museum. The Museum of Western Colorado: Dinosaur Journey is located across the street from the McDonalds and is a main attraction for the area. The museum provides a hands-on interactive experience for learning about the history of dinosaurs in western Colorado and surrounding areas. It has real fossils, cast skeletons and robotic reconstructions of dinosaurs. The museum also has a working laboratory where scientists are studying dinosaurs and preparing their bones for display. Kids can enjoy a simulated earthquake ride, a dinosaur library and a “quarry site” where kids can uncover Jurassic dinosaur bones.

NEARBY CITY OF GRAND JUNCTIONGrand Junction, Colorado is the largest city between Denver, Colorado and Salt Lake City, Utah. Grand Junction is only 12 miles away from Fruita via the I-70. The metropolitan area of Grand Junction has over 100,000 people. Major employers for this area include St. Mary’s Hospital, Mesa County School District #51, Mesa County, State of Colorado, Star Tek, Inc., Hilltop Community Resources, Community Hospital, VA Medical

15MCDONALDSMARKET OVERVIEW

Center, City Markets, City of Grand Junction, Colorado Mesa University, Halliburton Energy Service, Family Health West, Rocky Mountain Health Plans and many more.

POPULATIONThe population of Fruita was 16,319 for 2015 (fruitachamber.org). More than 88% of the population has graduated from high school (or GED). The median household income is $60,100 with a median house sales price of $213,925.

AGRICULTUREFruita is located in a lush and temperate agricultural valley that is fed by the Colorado River.

EMPLOYMENTMajor employers in the City of Fruita include: City of Fruita, Family Health West, City Market/ Kroger, Industrial Insulation Group, Frank Henry Equipment, Coop Country-Fruita, Cudd Energy Services and School District 51.

FRUITA, COLORADO AREA

SCHOOLSThere are three elementary schools, one junior high and one high school in Fruita. There are three colleges in the nearby City of Grand Junction, Colorado that is a short 20 minute drive away. Colorado Mesa University, Western Colorado Community College and IntelliTec College.

Colorado Mesa University is dedicated to providing an exceptional education experience in a student-centered environment. Founded in 1925, the school has grown to enroll almost 11,000 students. The university offers a full array of undergraduate and graduate programs.

Western Colorado Community College (WCCC) is a division of Colorado Mesa University. The WCCC offers a variety of certificate, associate degree, and career technical programs. It offers programs in fields such as nursing, early childhood education, culinary arts, criminal justice, agriculture and more.

IntelliTec College offers programs for students to become automotive technicians, pharmacy technicians, nursing and medical assistants and more.

16MCDONALDS

DEMOGRAPHICS

(SOURCE: Claritas)

5 MILE RADIUS 10 MILE RADIUS 15 MILE RADIUS

POPULATION

2015 Estimated Population 18,388 45,189 114,520

2020 Projected Population 19,510 47,048 117,866

2010 Census Population 17,414 43,842 112,489

Growth 2015-2020 5.6% 3.1% 1.8%

2015 Estimated Average Age 38.4 41.4 39.9

HOUSEHOLDS

2015 Estimated Households 6,669 17,408 45,307

2020 Projected Households 7,008 18,037 46,458

2010 Census Households 6,442 17,047 44,848

Growth 2015-2020 5.1% 3.6% 2.5%

2015 Estimated Average Household Size 2.7 2.6 2.4

INCOME

2015 Estimated Average Household Income $74,449 $77,686 $63,877

HOUSING

2015 Estimated Average Housing Value $281,836 $321,657 $269,513

EMPLOYMENT

Total Number of Employees 8,851 21,715 53,802

MARKET OVERVIEW

© 2016 CBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum.

This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.

This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the “Owner”), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CBRE, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner.

Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.

The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.

By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confident nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.

© 2016 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners. 02/16

McDonalds

REPRESENTATIVE PHOTO

I n ve s tmen t P rope r t i e s | Ne t Lease Prope r t y G roup S ing le Tenan t Abso lu t e NNN Inves tmen t O f f e r i ng

McDonald’s Ground Lease555 JURASSIC COURT | FRUITA, CO 81521

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