Taco Bell & KFC9 1 3 W . S t a t e S t r e e t | O l e a n , N Y 1 4 7 6 0

O F F E R I N G M E M O R A N D U M

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C O N T E N T S

INVESTMENT OVERVIEW

6 FINANCIAL ANALYSIS

8 TENANT OVERVIEWS

1 4 AREA OVERVIEW

E XC LU S I V E LY L I S T E D BY

Kevin ChangAssociate

Kevin.Chang@matthews.comDIR (310) 919-5828MOB (951) 616-8918LIC # 01976724 (CA)

Jeff rey Terwi l l igerBroker of Record

Lic# 30TE0892302

4

Gary ChouFVP & Senior Director

Gary.Chou@matthews.comDIR (310) 919-5827MOB (714) 928-8016LIC # 01911222 (CA)

4 | M a t t h e w s R e a l E s t a t e I n v e s t m e n t S e r v i c e s

I n v e s t m e n t H i g h l i g h t s

SECURED GROWING CASH FLOW

Stabilized Investment Property – There are over 10 years remaining on the lease with over 20

years of options

Attractive Increases – Cash flow will grow by 8% every 5 years - Great hedge against inflation!

Strong Store Volume – This location has consistently performed well above the national average

for KFC/Taco Bell stores for the past 7 years

Absolute NNN Investment – Tenant is responsible for taxes, insurance, utilities and maintenance

– Ideal investment for out of state investors

TESTED OPERATOR OF A LEADING QUICK SERVICE CONCEPT

Experienced Operator – The lease is guaranteed by BBG North, LLC and a personal guarantee

from the principals of the company - BBG North, LLC reportedly has 4 Taco Bell/KFC backing the

lease - This franchisee has been associated with the Taco Bell brand for almost 30 years

Leading QSR Concepts – Taco Bell is the #1 Quick Service Mexican concept in the world with over

7,000 restaurants servicing over 2 billion customers each year – KFC is the world’s second largest

chain (as measured in worldwide sales) behind McDonald’s

f i n a n c i a lo v e r v i e w

Ta c o B e l l & K F C913 W. State StreetOlean, NY 14760

List Price ........................................................................................................................$3,000,000

CAP Rate.................................................................................................................................... 7.31%

Gross Leasable Area .....................................................................................................± 3,120 SF

Lot Size ................................................................................................................................ ± 1 Acre

Year Built ....................................................................................................................................2007

Annualized Operating DataMonthly Rent Annual Rent Rent/SF Cap Rate

Current $16,931 $203,167 $65.12 6.77%

12/18/2017-12/17/2022 $18,285 $219,420 $70.33 7.31%

12/18/2022-12/17/2027 $19,748 $236,974 $75.95 7.90%

Option 1 $21,328 $255,931 $82.03 8.53%

Option 2 $23,034 $276,406 $88.59 9.21%

Option 3 $24,877 $298,518 $95.68 9.95%

Option 4 $26,867 $322,400 $103.33 10.75%

Tenant Summary

Tenant Trade Name Taco Bell & KFC

Type of Ownership Fee Simple

Lease Guarantor BBG North LLC & Personal

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 20 Years

Lease Commencement Date 12/18/2007

Rent Commencement Date 12/18/2007

Lease Expiration Date 12/17/2027

Term Remaining on Lease ± 10 Years

Increases 8% Every 5 Years

Options Four, 5-Year Options

Ta c o B e l l & K F C , O l e a n , N Y | 7

*Price based of upcoming rent increase on 12/18/2017

D e b t Q u o t e

LT V : 7 0 %T e r m : 1 0 Y e a r s

A m o r t i z at i o n : 2 5 Y e a r sR at e : 4 . 5 %

P l e a s e c o n ta c t B r i a n K r e b s a n d M at t M a r l i n f o r t h e d e b t q u o t e .

Brian Krebs: (949) 777-5988 or brian.krebs@barringtoncapcorp.comMatt Marlin: (949) 777-5991 or matt.marlin@barringtoncapcorp.com

t e n a n to v e r v i e w s

Ta c o B e l l & K F C , O l e a n , N Y | 9

Ta c o B e l l

Operating as a subsidiary of Yum! Brands, Inc., Taco Bell Corp. owns operates, and franchises a chain of Mexican-inspired quick service restaurants in the United States. The company’s restaurants offer made to order and customizable tacos, burritos, quesadillas, gorditas, nachos, chalupas, beverages, desserts and sides, and other specialty items. As the leading Mexican-inspired quick service restaurant brand, Taco Bell and its more than 350 franchise organizations proudly serve over 42 million customers each week through nearly 7,000 restaurants across the nation, as well as through its mobile, desktop and delivery ordering services. Overseas, Taco Bell has over 250 restaurants, with plans to add 2,000 more restaurants internationally within the next decade. In 2016, Taco Bell was named as one of Fast Company’s Top 10 Most Innovative Companies in the World.

S t r at e g yTaco Bell strives to give customers, employees and franchise partners more through their Live Más philosophy: The premise that food is an experience. By revamping its menu with innovative products such as the Doritos Locos Taco and breakfast menu and hitting on trends, Taco Bell has been able to transform its brand and propagated growth. Taco Bell plans to have 8,000 restaurants by the year 2023, which is anticipated to add an estimated 100,000 jobs nationwide.

G e o g r a p h i c O u t r e a c hThe company operates about 6,500 restaurants in Canada, Guam, Aruba, Dominican Republic, Chile, Costa Rica, Guatemala, Puerto Rico, Ecuador, Hawaii, Asia, and Europe.

Company Name Taco Bell

Parent Company Trade Name Yum Brands, Inc.

Ownership Public

Credit Rating (S&P) BBB

No. of Locations ± 6,500

No. of Employees ± 175,000

Headquartered Irvine, California

Website www.tacobell.com

K F C

Property Name KFC

Parent Company Trade Name Yum Brands, Inc.

Ownership Public

Credit Rating (S&P) BBB

No. of Locations ± 42,000

No. of Employees (All) ± 505,000

Headquartered Louisville, KY

Website www.kfc.com

Year Founded 1997

Y u m ! B r a n d s

YUM! Brands is the largest fast-food operator in the world in terms of number of locations, with more than 41,000 outlets in about 125 countries. The company’s flagship chains include #1 chicken fryer KFC (with more than 19,400 units), top pizza joint Pizza Hut (more than 15,600), and quick-service Mexican leader Taco Bell (more than 6,200). YUM! sold the Long John Silver’s seafood chain, along with several hundred A&W root beer and burger stands to two separate buyers in late 2011. In 2015 YUM! Brands announced it would spin off its Chinese operations into a separately traded public company.

KFC Corporation, based in Louisville, Kentucky, is one of the few brands in America that can boast a rich, decades-long history of success and innovation. It all started with one cook who created a soon-to-be world-famous recipe more than 70 years ago, a list of secret herbs and spices scratched out on the back of the door to his kitchen. That cook was Colonel Harland Sanders, of course, and now KFC is the world’s most popular chicken restaurant chain, specializing in that same Original Recipe® along with Extra Crispy™ chicken, home-style sides and buttermilk biscuits. There are more than 20,000 KFC outlets in 125 countries and territories around the world.

Ta c o B e l l & K F C , O l e a n , N Y | 1 1

1 2 | M a t t h e w s R e a l E s t a t e I n v e s t m e n t S e r v i c e s

Oceanside Blvd ± 31,792

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40,11

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t h e o f f e r i n g

Property Name Taco Bell/KFC

Property Address 913 W. State Street

Olean, NY 92056

Assessor’s Parcel Number 041200-094-064-0012-002-000-0000

Site DescriptionNumber of Stories One

Year Built 2007

Gross Leasable Area (GLA) ± 3,120 SF

Lot Size ± 1 Acres

Type of Ownership Fee Simple

Parking ± 29 Surface Spaces

Parking Ratio 9.29 : 1000

p a r c e l m a p

T e n a n t M a p

Olean High School

Olean, New York is the largest city within Cattaraugus County. In the town’s early years, it grew quickly as a transportation hub on the Allegheny River. Once the railroads were built, Olean became the regional railroad hub. Timber was a major industry in New York during this time, and Olean was the chief timber town in the region. Striving at the end of the 17th century, Olean built a couple different mills in the beginning of the 1900’s. As the town grew, several corporations such as a bicycle company, a manufacturer of mechanical pumps, and glass works moved into the town.

Olean became a competitive town within the region and has been steadily growing ever since. Many generations of the transportation and railroad era still live in the town today. There are many small businesses that make up the town with unique shops and restaurants. The crime is extremely low and the community comes together to make sure the town keeps moving towards success. Today, the most popular industries are in manufacturing and healthcare. Most occupations within these industries are in production and management.

O l e a n , N Y

O L E A N d e m o g r a p h i c s

POPULATION 1 Mile 3 Mile 5 Mile

2022 Projection 8,221 18,488 23,615

2017 Estimate 8,364 18,822 24,039

2010 Census 8,718 19,611 25,049

2000 Census 9,359 20,740 26,362

HOUSEHOLDS 1 Mile 3 Mile 5 Mile

2022 Projection 3,789 7,840 9,992

2017 Estimate 3,814 7,895 10,064

2010 Census 3,884 8,054 10,267

2000 Census 3,961 8,006 10,167

INCOME 1 Mile 3 Mile 5 Mile

2017 Est. Average Household Income

$52,355 $62,003 $63,145

A r e ao v e r v i e w

T H I N G S T O D O

Olean is a great place to get away from the big cities and get some fresh air. The town is the perfect place to experience all four seasons and the town beautifully changes to match. With rolling green hills and amazing forest paths, there are a lot places to explore.

Rock City Park

If you are looking to adventure the different hiking paths within Olean, Rock City Park is the perfect place to visit. It has amazing hiking and biking paths that are always filled with green scenery. What makes this park unique are the rock formations throughout the hiking trails. Many come to visit and climb these stacked rocks. It is a great exercise with an even better view.

Fannie E. Bartlett Historical House and Olean Point Museum

This Victorian-style house is a main feature within Olean. The house was transformed into a time capsule for Olean’s history during the 1700-1800’s. All nine rooms represent a specific time in the town’s history that made Olean what it is today. See how people lived during this time while also hearing stories of specific influential people that helped create the town of Olean.

Good Times of Olean

For a new and modern place, the whole family will enjoy, go to Good Times of Olean. It is the largest family-fun center in the region and has an activity for everyone to enjoy. With bowling, mini golf, and arcades, there is always something to do. The family-fun center also offers a restaurant and bar area.

Ta c o B e l l & K F C , O l e a n , N Y | 1 5

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Taco Bell/KFC located at 913 W. State Street, Olean, NY 14760 (“Property”) . I t has been prepared by Matthews Retai l Advisors. 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 Retai l Advisors. 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 Retai l Advisors 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 Retai l Advisors 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

e x c l u s i v e ly l i s t e d b y

Taco Bell9 1 3 W . S t a t e S t r e e t | O l e a n , N Y

™

Jeffrey Terwi l l igerBroker of Record

Lic# 30TE0892302

Kevin ChangAssociate

Kevin.Chang@matthews.comDIR (310) 919-5828MOB (951) 616-8918LIC # 01976724 (CA)

Gary ChouFVP & Senior Director

Gary.Chou@matthews.comDIR (310) 919-5827MOB (714) 928-8016LIC # 01911222 (CA)