SINGLETENANT

___________________

CONCORD, NORTH CAROLINA

ABSOLUTE NNNINVESTMENT OPPORTUNITY

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EXCLUSIVELY MARKETED BY

This Offering Memorandum has been prepared by SRS National Net Lease Group (SRS) and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive submarket conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment.

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PATRICK R. LUTHER, CCIM | MANAGING PRINCIPALSRS NATIONAL NET LEASE GROUP

610 Newport Center Drive, Suite 400 | Newport Beach, CA 92660DL: 949.698.1115 | M: 480.221.4221

Patrick.Luther@srsre.com | CA License No. 01209944

MATTHEW MOUSAVI | MANAGING PRINCIPALSRS NATIONAL NET LEASE GROUP

610 Newport Center Drive, Suite 400 | Newport Beach, CA 92660DL: 949.698.1116 | M: 714.404.8849

Matthew.Mousavi@srsre.com | CA License No. 01732226

MICHAEL WALSETH | SENIOR VICE PRESIDENTSRS NATIONAL NET LEASE GROUP

610 Newport Center Drive, Suite 400 | Newport Beach, CA 92660DL: 949.270.8201 | M: 949.400.4261

Michael.Walseth@srsre.com | CA License No. 01405081

Broker of Record: Kyle Stonis | NC License No: 265301

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5INVESTMENT SUMMARY

INVESTMENT HIGHLIGHTSCONCORD LOCAL ATTRACTIONS

8PROPERTY OVERVIEW

PARCEL MAPAERIALS

SITE PLAN

13AREA OVERVIEW

CONCORD, NC DEMOGRAPHICS

15FINANCIALS

RENT ROLLPRICING SUMMARY

TENANT PROFILE

SRS National Net Lease Group is pleased to present the rare opportunity to acquire Chuck E Cheese’s, an absolute NNN leased, investment property located in Concord, NC. The tenant, CEC Entertainment, Inc, will sign a brand new 20-year lease at the close of escrow, with 3 (5-year) option periods. The lease features 10% increases every 5 years in the initial term and at the beginning of each option period. The lease is corporate guaranteed and is absolute NNN with zero landlord responsibilities. CEC Entertainment, Inc owns and operates approximately 590 stores and has annual revenues of approximately $825 MM.

The subject property is located along Interstate 85 (106,000 VPD), providing ease of access through the nearby on/off-ramp. In addition, the asset has excellent visibility along a heavily trafficked interstate. The subject site is located within the primary retail corridor serving the city of Concord and the neighboring cities. Concord Mills Mall (1,334,000 SF) is located directly across from the subject property with tenants including: TJ Maxx, Forever 21, Bass Pro Shops, Bed Bath & Beyond, AMC Theaters, Best Buy, H&M, Burlington Coat Factory, Nike, Old Navy, and more. The 5-mile trade area is supported by a dense population of approximately 137,400 with an average household income of $87,400. Furthermore, the trade area has experienced steady population growth of approximately 12.77% over the last 5 years and is projected to grow by an additional 4.34% by 2021.

5 / CHUCK E. CHEESE’S / CONCORD, NORTH CAROLINA INVESTMENT SUMMARY / SRS NATIONAL NET LEASE GROUP

INVESTMENT SUMMARY OFFERING

PRICING $4,042,000

NET OPERATING INCOME: $262,731

CAP RATE: 6.50%

GUARANTY: Corporate

TENANT: CEC Entertainment, Inc.

LEASE TYPE: Abs. NNN

LANDLORD RESPONSIBILITIES: None

PROPERTY SPECIFICATIONS

RENTABLE AREA: 11,656 SF

LAND AREA: 2.17 Acres

PROPERTY ADDRESS: 7970 Lyles Lane NW, Concord, NC 28027

YEAR BUILT: 2001

PARCEL NUMBER: 4589 82 2064

OWNERSHIP: Fee Simple (Land and Building)

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6 / CHUCK E. CHEESE’S / CONCORD, NORTH CAROLINA INVESTMENT HIGHLIGHTS / SRS NATIONAL NET LEASE GROUP

INVESTMENT HIGHLIGHTS

BRAND NEW 20-YEAR CORPORATE GUARANTEED LEASE | RENTAL INCREASES

• New 20-year corporate guaranteed lease (sale leaseback)• Demonstrates long-term commitment to the site• 10% rental increase every 5 years

ABS. NNN LEASE | FEE SIMPLE OWNERSHIP | NO LANDLORD RESPONSIBILITIES• Tenant pays for all CAM, insurance, and taxes• Ideal for an out-of-state, passive investor

ACROSS FROM CONCORD MILLS MALL (1,334,000 SF)• The subject property is an outparcel to Concord Mills Mall, a 1,334,000 SF mall with

tenants including: TJ Maxx, Forever 21, Bass Pro Shops, Bed Bath & Beyond, AMC Theaters, Best Buy, H&M, Burlington Coat Factory, Old Navy, and more

• Ideal tenant synergy and crossover traffic

LOCATED ALONG INTERSTATE 85 | LARGE MONUMENT SIGN• The subject property is located along Interstate 85 (106,000 VPD) providing prime

visibility for the site• Convenient access for both local and highway traffic• Direct on/off-ramp access

STRONG DEMOGRAPHICS IN AFFLUENT 5-MILE TRADE AREA | HIGH GROWTH• Over 137,400 residents and 73,200 employees support the trade area• $87,400 average household income• The 1-mile trade area has experienced explosive population growth of

approximately 12.77% over the last 5 years and is projected to grow by an additional 4.34% by 2021

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7 / CHUCK E. CHEESE’S / BROWNSVILLE, TEXAS CONCORD LOCAL ATTRACTIONS / SRS NATIONAL NET LEASE GROUP

CONCORD - TRADE AREA ATTRACTIONS

CONCORD MILLS MALL ANCHORS (1,334,000 SF)• Bass Pro Shops• AMC Theaters• Burlington Coat Factory• Best Buy• Nike Factory Store• TJ Maxx• Bed, Bath, & Beyond

ONLY MALL WITH AN ATTACHED THEATER AND MULTIPLE ENTERTAINMENT• Concord Mills is the only mall in the greater Concord area that includes both AMC

theaters, Dave & Buster’s, a go-karting track, and miniature golfing

PAVILION AT KING’S GRANT - 286,197 SF POWER CENTER• Pavilion at King’s Grant, across from Concord Mills Mall, features an ideal mix of

national/credit tenants that supplements the existing tenants within Concord Mills Mall, further strengthening the site’s draw for consumers

• Tenants include: Ross Dress for Less, Pier 1 Imports, Toys R Us, hhgregg, Petco, Total Wine, and more

CHARLOTTE MOTOR SPEEDWAY• Charlotte Motor Speedway, located 1 mile from the subject property, hosts many

major events throughout the year including: NASCAR Sprint Cup Series, NASCAR, Xfinity Series, NASCAR, Camping World Truck Series, NASCAR Whelen Southern Modified Tour, NHRA Mello Yello Drag Racing, MXGP, and World of Outlaws

• Charlotte Motor Speedway is considered one of the busiest sports venues in the country with more than 380 events per year

GREAT WOLF LODGE - 1 OF 2 INDOOR WATER PARKS IN NORTH CAROLINA• Great Wolf Lodge, which is adjacent to the subject site, features a climate-controlled

water park with 12 water slides and 3 swimming pools and is only 1 of 2 indoor water parks in the state of North Carolina

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8 / CHUCK E. CHEESE’S / CONCORD, NORTH CAROLINA PROPERTY OVERVIEW / SRS NATIONAL NET LEASE GROUP

ACCESSThere are three (3) access points along Lyles Lane NW.

TRAFFIC COUNTSInterstate 85: ....................................................................................106,000

IMPROVEMENTSThere is approximately 11,656 SF of existing building area.

PARKINGThere are approximately 151 parking spaces on the owned parcel. The parking ratio is approximately 13.34 stalls per 1,000 SF of leasable area.

YEAR BUILT2001

PARCELParcel Number: 4589 82 2064 Acres: 2.17 Square Feet: 94,525 SF

ZONINGCommercial

PROPERTY OVERVIEW

PARCEL MAP

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LYLES

LANE

NW

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…

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2016 ESTIMATED POPULATION1 Mile ........................................................... 1,651 3 Mile ......................................................... 37,9425 Mile ........................................................137,433

2016 AVERAGE HOUSEHOLD INCOME1 Mile ........................................................$72,774 3 Mile ........................................................$90,735 5 Mile ........................................................$87,470

2016 ESTIMATED TOTAL EMPLOYEES1 Mile ......................................................... 13,084 3 Mile ......................................................... 24,2605 Mile ......................................................... 73,261

CONCORD

CHARLOTTE

The City of Concord is located in the north central portion of Cabarrus County, North Carolina (the “County”). The County is located in the east central part of the Charlotte-Gastonia-Concord MSA. The City, incorporated in 1796, is the County seat and covers an area of approximately 60 square miles. The City adjoins the City of Charlotte, North Carolina, and is one of seven incorporated municipalities in Cabarrus County. The estimated population of the city as of July 1, 2015 was 196,762.

Concord has a diverse economy comprising shipping and transportation, banking, manufacturing, mo-torsports, and various service sectors. Principal products manufactured in the City now include lithium battery membranes, coffee, electrical wiring devices and accessories, foods, motorsports equipment, plastics, printing and publishing, concrete products, lumber and wood, specialized colorings, fabricat-ed metal and machinery products, mobile and modular home components, corrugated packaging and textiles. The distribution, warehousing and shipping industry is a growing sector of the City’s economy. This industry benefits from proximity to Charlotte (a regional trucking and manufacturing center with a major commercial international airport, including major freight operations).

Downtown shopping features merchants offering antiques, fine collectibles, and arts and crafts. Con-cord is also home to the large retail venue Concord Mills, and Charlotte Motor Speedway. These two are the primary economic driving forces of the city.

Concord has evolved into a major tourist destination in North Carolina. Concord Mills has one of the highest numbers of visitors of any attraction in North Carolina and has added a new aquarium to its exhibit. Charlotte Motor Speedway, the ZMax Dragway and NASCAR team race shops bring in hundreds of thousands of people that use lodging, restaurants and shops. This has also led to the development of other facilities such as the Embassy Suites Resort/Concord Convention Center, the Great Wolf Lodge and many other limited service hotels.

Educational opportunities include public and private schools in elementary, secondary, and higher education. Publicly, the area in Concord is served by the Cabarrus County Schools system. There are 12 elementary schools in Concord, along with 4 middle schools, and 5 high schools. Local private schools include Cannon School and Concord First Assembly Academy.

Concord Regional Airport (JQF) is an airport publicly owned and operated by the City of Concord. It is designated as a reliever facility for Charlotte Douglas International Airport (CLT). Charlotte Douglas provides Concord with a major domestic/international gateway. Concord Regional Airport aviation activity consists of charter aircraft, limited commercial flights, flight schools, and private aircraft.

AREA OVERVIEW OF CONCORD

13 / CHUCK E. CHEESE’S / CONCORD, NORTH CAROLINA AREA OVERVIEW / SRS NATIONAL NET LEASE GROUP

AREA OVERVIEW (CONTINUED)

14 / CHUCK E. CHEESE’S / CONCORD, NORTH CAROLINA AREA OVERVIEW / SRS NATIONAL NET LEASE GROUP

DEMOGRAPHICS 1 MILE 3 MILES 5 MILES

2016 Estimated Population 1,651 37,942 137,4332021 Projected Population 2,042 42,551 153,3932010 Census Population 779 32,595 119,716Projected Annual Growth 2016 to 2021 4.34% 2.32% 2.22%Historical Annual Growth 2010 to 2016 12.77% 2.46% 2.23%

2016 Estimated Households 819 13,574 50,1582021 Projected Households 1,010 15,143 55,7522010 Census Households 365 11,823 44,251Projected Annual Growth 2016 to 2021 4.28% 2.21% 2.14%Historical Annual Growth 2010 to 2015 13.80% 2.23% 2.03%

2016 Estimated White 62.10% 52.00% 53.80%2016 Estimated Black or African American 19.50% 30.10% 29.70%2016 Estimated Asian or Pacific Islander 13.00% 10.20% 9.20%2016 Estimated American Indian or Native Alaskan 0.20% 0.40% 0.40%2016 Estimated Other Races 2.10% 4.20% 3.80%2016 Estimated Hispanic 6.10% 9.60% 8.80%

2016 Estimated Average Household Income $72,774 $90,735 $87,470 2016 Estimated Median Household Income $58,193 $75,348 $70,750 2016 Estimated Per Capita Income $33,195 $32,822 $31,925

2016 Estimated Total Businesses 412 1,159 4,1292016 Estimated Total Employees 13,084 24,260 73,261

15 / CHUCK E. CHEESE’S / CONCORD, NORTH CAROLINA RENT ROLL / SRS NATIONAL NET LEASE GROUP

Price: ...................................................... $4,042,000Net Operating Income: .............................. $262,731

Cap Rate: ........................................................6.50%Lease Type:............................................... Abs. NNN

FINANCIAL INFORMATIONYear Built: ...................................................2001Rentable Area: .................................... 11,656 SF

Parcel Number: ............................ 4589 82 2064Land Area: ......................................... 2.17 Acres

PROPERTY SPECIFICATIONS

RENT ROLL

LEASE TERM RENTAL RATESTENANT NAME SQUARE FEET LEASE START LEASE END BEGIN MONTHLY PSF ANNUALLY PSF RECOVERY TYPE OPTIONS

Chuck E Cheese’s 11,656 At COE 20 Years Current $22,540 $1.93 $262,731 $22.54 Absolute NNN 3 (5-Year)Corporate Guaranty Year 6 $24,084 $2.07 $289,004 $24.79 Option 1: $384,664

Year 11 $26,492 $2.27 $317,905 $27.27 Option 2: $423,131Year 16 $29,141 $2.50 $349,695 $30.00 Option 3: $465,444

Note: Tenant has a right of first refusal and must respond within 30 days.

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16 / CHUCK E. CHEESE’S / CONCORD, NORTH CAROLINA TENANT PROFILE / SRS NATIONAL NET LEASE GROUP

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CHUCK E. CHEESE’SChuck E. Cheese’s was founded in 1977, and has since been recognized as the leader in family dining and entertainment. Chuck E. Cheese’s (formerly Chuck E. Cheese’s Pizza Time Theatre and Chuck E. Cheese’s Pizza) is a chain of American family entertainment centers and restaurants. The chain is the primary brand of CEC Entertainment, Inc. and is headquartered in Irving, Texas. The establishment serves pizza and other menu items, complemented by arcade games, amusement rides, and animatronic displays as a focus of entertainment for the entire family. The brand derives its name from its main animatronic character Chuck E. Cheese, a comedic mouse who sings and interacts with guests.

In 1998, the company was renamed to CEC Entertainment, Inc, which includes both Chuck E Cheese’s and Peter Piper Pizza (140 locations). Following the renaming in 1999, CEC Entertainment, Inc bought out Discovery Zone. In February of 2014, Apollo Global Management acquired CEC Entertainment.

APOLLO GLOBAL MANAGEMENTApollo Global Management and its subsidiaries are a leading global alternative investment manager. Apollo has 3 major divisions consisting of capital markets, real estate, and private equity.

Apollo’s private equity group has approximately $42 billion under management across nine core industries. These industries include: business services, chemicals, consumer services, consumer & retail, financial services, leisure, manufacturing & industrial, media/telecom/technology, and natural resources. Their strategies include: opportunistic buyouts, distressed buyouts & debt investments, corporate partner buyouts, and remain flexible to all other types of strategies.

Apollo’s capital markets division has approximately $135 billion under management across six areas defined as: US performing credit, structured credit, opportunistic credit, non-performing loans, European credit, and Athene Asset management. In addition to the defined areas, their capital market groups’ activities span a broad range of the credit spectrum, including performing and non-performing loans, distressed debt, mezzanine debt, senior bank loans, structured credit and other value-oriented fixed income products.

Apollo’s real estate group has approximately $11 billion under management through a series of investment funds, strategic accounts, and Apollo Commercial Real Estate Finance, Inc (NYSE:ARI), a publicly traded commercial mortgage real estate trust. Apollo’s real estate group has a local presence in North America, Europe and Asia and actively pursues investment opportunities in each of these geographies. Apollo offers financing across a broad spectrum of property types and at various points within a property’s capital structure, including first mortgage, mezzanine financing and preferred equity.

Lastly, Apollo Global Management manages 5 publicly listed funds: Apollo Investment Corporation (NASDAQ: AINV); Apollo commercial Real Estate Finance, Inc. (NYSE: ARI); AP Alternative Assets, L.P. (Euronext: AAA); Apollo Senior Floating Rate Fund Inc. (NYSE: AFT); and Apollo Tactical Income Fund Inc. (NYSE: AIF).

Company Type: ................................... PrivateLocations: .............................................. 590+Website: .................. www.chuckecheese.com

TENANT PROFILE

500+PROPERTIES CURRENTLY

REPRESENTED

600+CLIENTS REPRESENTED

IN 2014

$180M+HOW MUCH CLIENTS

SAVED IN 2014

20+OFFICES

280+BROKERS,

PROFESSIONALS,AND STAFF

$1.8B*TRANSACTION VALUE

*STATISTICS ARE FOR 2015.

SRS GLOBAL STATS

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