M o n t i c e l l o , I n d i a n a 1

OFFERING MEMORANDUM

TACOBELL

1009

NOR

TH M

AIN ST

REET

| MON

TICEL

LO, IN

™

EXCLUSIVELY LISTED BYCHRIS HAKEBROKER OF RECORD

LIC # rb14047804 ( IN)

ARON CLINESVP & Senior Director

aron.c l ine@matthews.comDIR 949.432.4509MOB 818.632.0233LIC # 01904371 (CA)

JON PRATERAssociate

jon.prater@matthews.comDIR 949.432.4516MOB 626.483.0780LIC # 02013987 (CA)

CONTENT

04

06 12

10EXECUTIVE SUMMARY PROPERTY DETAILS

AREA OVERVIEWTENANT REPORT

™

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

• Seasoned Tenant with long term occupancy history at this location

• Strong store sales with healthy rent to sales ratio – about 6%

• 15-year lease with approximately 4 years remaining on the primary term with Four (4), Five (5) Year Options to renew

• Located on Main street of Monticello, IN, directly across from Kroger Shopping Center

• Rare 1% annual increases for remainder of term and in each of the option periods

• 3 miles from Indiana Beach Amusement Resort, which sees ± 750,000 visitors per year

• Monticello, IN located halfway between Chicago, IL and Indianapolis, IN

• Located less than 2 miles from Walmart Super Center

• Other dominant tenants in the trade area include: Kroger, Ace Hardware,

Pizza Hut, Burger King, Arby’s, CVS Pharmacy, Dollar General, Advance Auto Parts, amongst others

• Newly re-imaged building with drive-thru

• Taco Bell has nearly 7,000 locations in the U.S.

• Guaranteed by K-MAC enterprises – 2nd largest Franchisee of YUM! Brand Restaurants with over 290 locations

IDEAL 1031 EXCHANGE PROPERTY

• Absolute NNN Investment with no Landlord Responsibilities

• Taco Bell has a drive thru providing convenience to customers, making it less likely for them to leave and relocate

• Taco Bell is one of America’s fastest growing Quick Service Restaurant chains that has a history of being incredibly popular and successful

INVESTMENT HIGHLIGHTS

TACO BELL

1009 North Main StreetMonticello, IN 47960

List Price ..........................................................................................................$1,136,000

CAP Rate - Current ................................................................................................6.82%

Gross Leasable Area ................................................................................... ± 2,234 SF

Lot Size .......................................................................................................± 0.45 Acres

Year Built .................................................................................................................... 1990

INVESTMENTOVERVIEW

M o n t i c e l l o , I n d i a n a 5

Annualized Operating DataMonthly Rent Annual Rent Rent/SF Cap Rate

Current - 3/31/2018 $6,453.50 $77,442.04 $34.66 6.82%

4/1/2018 - 3/31/2019 $6,518.04 $78,216.46 $35.01 6.89%

4/1/2019 - 3/31/2020 $6,583.22 $78,998.62 $35.36 6.95%

4/1/2020 - 3/31/2021 $6,649.05 $79,788.61 $35.72 7.02%

Avg Monthly Rent

Avg Annual Rent

Blended Cap Rate

Option 1 $6,851.20 $82,214.43 7.24%

Option 2 $7,200.67 $86,408.18 7.61%

Option 3 $7,567.99 $90,815.87 7.99%

Option 4 $7,954.04 $95,448.39 8.40%

Tenant Summary

Tenant Trade Name Taco Bell

Type of Ownership Fee Simple

Lease Guarantor K-MAC Enterprises, Inc.

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 15 Years

Lease Commencement Date 3/14/2006

Rent Commencement Date 3/14/2006

Lease Expiration Date 3/31/2021

Term Remaining on Lease ± 4 Years

Increases 1.0% Annual Increases

Options Four (4), Five (5) Year Options

TENANT REPORT

M o n t i c e l l o , I n d i a n a 7

TACO BELL

Publicwww.tacobell.com

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.

K-MAC Enterprises Inc. is a leading operator of Taco Bell, KFC and Long John Silvers quick-service restaurants, with more than 290 locations. The company’s restaurants, franchised from YUM! Brands, are located in Arkansas, Illinois, Indiana, Kentucky, Mississippi, Missouri, Oklahoma,

Tennessee, and Texas. We also own and operate a small number of buffet-style family steak houses franchised from Golden Corral. K-MAC was founded in 1964 by Ken McGruder.

STRATEGYTaco 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.

GEOGRAPHIC REACHThe company operates about 6,500 restaurants in Canada, Guam, Aruba, Dominican Republic, Chile, Costa Rica, Guatemala, Puerto Rico, Ecuador, Hawaii, Asia, and Europe.

Parent Company Trade Name Yum! Brands, Inc. (NYSE: YUM)

Franchisee K-MAC Enterprises, Inc.

No. of Locations (all) ± 7,000

No. of Employees (all) ± 175,000

Headquartered Irvine, California

Year Founded 1954

OVERVIEW

8 Ta c o B e l l

Tenant:Taco Bell Inc., a California Corporation / K-MAC Holdings Corp., a

Delaware Corporation

Tenant Address:1 Glen Bell Way, Irvine, CA 92618 / Metro Center, One Station

Place, Stamford, CT 06902

Property Address: 1009 North Main St, Monticello, IN 47960

Date of Lease 3/14/2006

Lease Commencement: 3/14/2006

Lease Expiration: 3/31/2021

Lease Term: Fifteen (15) Years

Current Rent: $76,675.29

Rent Increases: 1.0% Rental Increases Every One (1) Year

Renewal Options: Four (4), Five (5) Year Options

Annual Rent:

Year 1: $34.66/SFYear 2: $35.01/SFYear 3: $35.36/SFYear 4: $35.72/SF

Real Estate Taxes: Tenant is responsible (see p. 11, section 9 of lease)

Insurance (Tenant): Tenant is responsible (see p.12, section 11 of lease)

Utilities: Tenant is responsible (see p. 12, section 10 of lease)

Repairs and Maintenance: Tenant shall maintain the premises in good condition and repair.

(see p. 18, section 17 of lease)

Estoppel Certificate: Within 20 days following any written request

Right of Refusal: Tenant shall have the right of first refusal to purchase the premises

upon the terms set forth in this section (see p. 39, section 60 of lease)

TACO BELL LEASE ABSTRACT

M o n t i c e l l o , I n d i a n a 9

THE OFFERING

Property Name Taco Bell

Property Address 1009 North Main Street

Monticello, IN 92056

Assessor’s Parcel Number 91-73-28-002-061.100-021

Site DescriptionNumber of Stories One

Year Built 1990

Gross Leasable Area (GLA) ± 2,234 SF

Lot Size ± 0.45 Acres (19,650 SF)

Type of Ownership NNN

Parking ± 13 Surface Spaces

Parking Ratio 5.77 : 1,000 SF

Landscaping Professional

Topography Generally Level

Population 3-Mile 5-Mile 10-Mile

2022 Projection 8,787 12,045 21,988

2017 Estimate 8,760 11,991 21,931

Growth 2017 - 2022 0.31% 0.45% 0.26%

Households 3-Mile 5-Mile 10-Mile

2022 Projection 3,669 5,038 9,078

2017 Estimate 3,628 4,970 8,984

Growth 2017 - 2022 1.12% 1.36% 1.04%

Income 3-Mile 5-Mile 10-Mile

2017 Est. Average Household Income

$60,210 $62,326 $62,898

PROPERTY DEMOGRAPHICS

PROPERTYDETAILS

PARCEL MAP

1 0 Ta c o B e l l

M o n t i c e l l o , I n d i a n a 1 1

SURROUNDING TENANTS

The Lafayette, Indiana Metropolitan Statistical Area is an economic and education center of the region that lies between Indianapolis and Chicago, IL. Its core is comprised of Lafayette and West Lafayette, which are located along the banks of the Wabash River. Lafayette is a prosperous Midwestern agricultural and manufacturing hub on the southeast bank of the Wabash River, across from the vibrant and dynamic town of West Lafayette. Home to the 40,000-student engineering and agriculture rooted Purdue University, West Lafayette is a modern college town.

Both cities provide a diverse economy in the metropolitan area. That being said, much of the economy is based around the academic and industrial activities of Purdue University, which brings a strong complement of research and technology firms. The university and its associated businesses employ the largest portion of the Lafayette workforce. Other notable industries in the area are Alcoa, Caterpillar, Wabash National, Tate & Lyle, Evonik and a Toyota assembly plant.

LAFAYETTE, IN

AREA OVERVIEW

M o n t i c e l l o , I n d i a n a 1 3

MONTICELLO, IN Known as a tourist destination in north-central Indiana, the city of Monticello is home to the Indiana Beach amusement park, Lake Shafer and Lake Freeman. It is the county seat of White County in Union Township, one of twelve townships in the county. Monticello is a vibrant community that offers all visitors a perfect getaway.

With impressive tourism assets, a diverse economic backbone and dynamic leadership, Monticello is an ideal place for businesses. Monticello has a solid industrial base in which no company dominates the labor market, thus assuring a strong local economy. The area’s diverse industrial base represents national and international companies, including Ball Metal Beverage Container Corporation, Emerson Electric’s McGill Corporation, Monticello Spring Corporation, MSCA, Polymer Science and Jordan Manufacturing.

Area industrial and business employers benefit from the proximity of higher education training programs provided through Ivy Tech and Purdue University, resulting in an efficient, dependable, hardworking and reliable workforce.

TOP EMPLOYERS

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Taco Bell located at 1009 North Main Street, Monticello, IN 47960 (“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 ByJON PRATERAssociate

jon.prater@matthews.comDIR 949.432.4516MOB 626.483.0780LIC # 02013987 (CA)

ARON CLINESVP & Senior Director

aron.c l ine@matthews.comDIR 949.432.4509MOB 818.632.0233LIC # 01904371 (CA)

CHRIS HAKEBROKER OF RECORD

LIC # rb14047804 ( IN)

™