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PRESENTED BY:

Mike YeggySenior Vice President

+1 816 556 1148michael.yeggy@colliers.com

Dan BourkSenior Vice President

+1 816 556 1126dan.bourk@colliers.com

OFFERINGMEMORANDUM

BLACK BEAR DINER11981 S STRANG LINE ROADOLATHE, KANSAS

NEW 10 - YEAR ABSOLUTE NNN LEASE

REPRESENTATIVE PHOTO

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� EXECUTIVE SUMMARY

� TENANT DESCRIPTION

� FINANCIAL ANALYSIS

� MARKET OVERVIEW

TABLE OF CONTENTS

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OFFERING SUMMARYPURCHASE PRICE $2,750,000

CAP RATE 6.00%

TENANT Bear Tracks Holdings, LLC d/b/a Black Bear Diner

LOCATION 11981 S Strang Line Road, Olathe, Kansas

SQUARE FEET 7,662

YEAR BUILT 1998

YEAR RENOVATED 2019

LEASE TERM 10 Years

LEASE TYPE Absolute NNN

RENT SCHEDULEYEARS PER MONTH ANNUAL PSF INCREASE

BASE RENT 1 - 5 $13,750 $165,000 $21.53

6 - 10 $15,125 $181,500 $23.69 10%

OPTION RENT 11 - 15 $16,638 $199,650 $26.06 10%

16 - 20 $18,301 $219,615 $28.66 10%

21 - 25 $20,131 $241,577 $31.53 10%

� New 10-Year Lease

� Absolute NNN - no landlord responsibilities

� Three, five-year extension options

� 10% rental increases every five years, including extension options

� Corporate guarantee from one of the top restaurant chains in the country with more than 124 locations in 13 states

� Newly renovated building with more than $1,000,000 in improvements

� Located in one of the top retail nodes and one of the strongest submarkets in the Kansas City metro

� Pad site to an AMC 30-screen Theater and surrounded by national retailers including Target, Bed Bath & Beyond, PetSmart, Home Depot, Dick’s Sporting Goods, Whole Foods, Old Navy and Marshalls among others

� Median Household Income exceeds $90,000 in the immediate trade area

� Estimated store opening in September 2019

INVESTMENT HIGHLIGHTS

EXECUTIVE SUMMARY

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EXECUTIVE SUMMARY

Copyright 2017c

All ideas, designs, arrangements and plans indicated or represented by this drawing are owned by; and the property of, NICHOLS, MELBURG and ROSSETTO and were created, evolved and developed for use on, and in conjuction with, the specified project. None of such ideas, designs, arrangements or plans shall be used by, or disclosed to any person, firm or corporation for any purpose whatsoever without the written permission of NICHOLS, MELBURG and ROSSETTO.

555 MAIN STREET, SUITE 300CHICO, CA 95928

(530) 891-1710 (530) 891-0138 FAX

http://www.nmrdesign.com

CONSULTANTS

LICENSE STAMPS

PROJECT NAME

SHEET TITLE

DRAWING STATUS

REVISIONSSym. Description Date

Drawn By

Date Issued

Scale

Project No.

SHEET No.

PROPOSED NORTH ELEVATIONSCALE: 1/4"=1'-0"

2

EXISTING NORTH ELEVATIONSCALE: 1/4"=1'-0"

1

18-5791

11/01/2018

KEY NOTES ELEVATION GENERAL NOTES & LEGENDNOT ALL KEYNOTES ARE USED ON EVERY SHEET.

A

C

PAINT COLOR "Jackson Tan" HC-46 By BENJAMIN MOOREWith SATIN EXTERIOR LATEX

OLATHE, KS

11981 S. Strang Line Rd.Olathe, KS 66062

CONSTRUCTIONDOCUMENTS

FOR REVIEW

D

VERTICAL WOOD T & G SIDING - NATURAL STAIN COLOR 9204 HEARTWOOD CLEAR BY CABOT

PAINT COLOR (ACCENT #1)"Hunter Green" 2041-10 By BENJAMIN MOOREWith SATIN or SEMI-GLOSS EXTERIOR LATEX

E

A1. ALL FLASHING AND ROOF TOP PENETRATIONS TO

BE PAINTED TO MATCH ADJACENT ROOF, WALL OR TRIM COLOR AS APPLICABLE. NO UNPAINTED, GALVANIZED FLASHING OR VENTS TO BE VISIBLE.

2. AT ELEC'L AND OTHER UTILITY PENETRATIONS

PROVIDE FLASHINGS AND FILLERS AS REQUIRED TO PREVENT WATER & PEST INTRUSION.

3. ALL ITEMS NOT NOTED AS NEW ARE E.T.R. ALL

E.T.R. ITEMS ARE TO BE THOROUGHLY CLEANED AND PAINTED AS INDICATED.

4. ALL PLASTER IS E.T.R., EXCEPT WHERE NOTED TO

BE PATCHED, ETC.

5. SIGNAGE TO BE UNDER SEPARATE PERMIT.

6. LEGEND FOR REFERENCE ONLY. REFER TO SHELL DWGS FOR EXTERIOR RENNOVATIONS.

B

DEMO KEY NOTESPAINT COLOR "Brookline Beige" HC-47 By BENJAMIN MOOREWith SATIN EXTERIOR LATEX

PAINT COLOR (ACCENT #2)"Roasted Coffee Beans" 2098-20 By BENJAMIN MOOREWith SATIN EXTERIOR LATEX

(E) BARREL TILE ROOFING TO REMAINF

EXTERIORELEVATIONS

A301

1/4" = 1'-0"

OPT 1

PROPOSED BUILDING ELEVATION

5

119TH STREET

S BL

ACK

BOB

ROADS STRANG LINE ROAD

110,36

0 CP

D

14,914

CPD

32,692 CPD21

,828

CPD

21,890

CPD

92,08

5 CPD

25,2

70 C

PD

28,582 CPD

OLATHE STATION

OLATHE POINTENORTHRIDGE PLAZA

HEARTLAND COMMUNITY CHURCH

SITE

EXECUTIVE SUMMARY

LOCATION AERIAL

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EXECUTIVE SUMMARY

SITE

LOCATION MAP

DEMOGRAPHICS1-MILE 3-MILE 5-MILE

Population 10,259 81,191 227,160

Households 4,264 32,124 89,318

Median Household Income $70,002 $83,928 $90,547

Per Capita Income $37,994 $37,692 $42,120

Daytime Businesses 516 4,041 9,775

Daytime Employees 9,755 64,720 137,677

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TENANT OVERVIEW

� Ranked #151 in Nation’s Restaurant News 2018 Top 200 Report, up from #171 in the same 2017 report

� Recognized by Nation’s Restaurant News as one of the country’s “Top 10 Fastest-Growing Chains” in 2018

� Labeled as one of the “Smartest-Growing Brands” by Franchise Times in 2018

� Recognized as a Top 10 Franchise Value by Full Service Restaurant Magazine

� Ranked 275th in Franchise Times’ Next 300 Franchises to Watch

� In 2017, Nation’s Restaurant News highlighted the brand as a “disruptor” in the family dining market, noting market share gains against numerous legacy brands

AWARDS AND RECOGNITION

www.blackbeardiner.com

Black Bear Diner is a restaurant chain that was founded in 1995 in Mount Shasta, California and is currently based out of Redding, California. The restaurant serves homestyle and old-fashioned comfort foods and offers a one-of-a-kind experience in a fun, bear-themed atmosphere. Black Bear Diner was founded by Bruce Dean and Bob & Laurie Manley. As of 2019, Black Bear Diner has 124 locations in 13 states.

Black Bear is a strong performer with a unique positioning in the family-dining segment and features décor with a rustic motif of “over-the-top bear paraphernalia.” Every restaurant is decorated with a 12-foot-tall black bear carving by artist Ray Schulz. The menu format mimics an old newspaper titled The Black Bear Gazette, with articles on the front page. The restaurant offers family meals such as breakfast all day, burgers, salads, and shakes.

BLACK BEAR DINER

REPRESENTATIVE PHOTO

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RENT SCHEDULEYEARS ANNUAL CAP RATE

BASE RENT 1 - 5 $165,000 6.00%

6 - 10 $181,500 6.60%

OPTION RENT 11 - 15 $199,650 7.26%

16 - 20 $219,615 7.99%

21 - 25 $241,577 8.79%

FINANCIAL ANALYSIS

LEASE SUMMARYLEASE COMMENCEMENT DATE 2019

LEASE EXPIRATION DATE 2029

TERM REMAINING 10 years

LEASE TYPE Absolute NNN

RENTAL INCREASES 10% every five years

OPTIONS Three, five years each

PRICING SUMMARYPURCHASE PRICE $2,750,000

NET OPERATING INCOME $165,000

CAP RATE 6.00%

PRICE PER SQUARE FOOT $359

REPRESENTATIVE PHOTO

REPRESENTATIVE PHOTO

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MARKET OVERVIEW

The City of Olathe is a suburb of the Kansas City Metro located on the Kansas side of the state line. Olathe is one of the fastest growing communities in the metro and is located just 20 miles southwest of downtown Kansas City. Olathe is located in highly desirable Johnson County. Johnson County is often considered one of the more affluent portions of town. While the majority of new office and retail developments within the metro have recently occurred in Johnson County, it should be no surprise that the population growth has also followed suit. The City of Olathe has experienced a population boom in recent years. Between 2000 and 2018, the City of Olathe has grown by a remarkable 47.0%. According to the most recent US census, Olathe is the 24th fastest growing community in the US for populations over 100,000. There are currently 138,366 residents in Olathe with the population projected to grow another 5.5% over the next 5 years.

OLATHE OVERVIEW

JOHNSON COUNTY OVERVIEW

Johnson County, Kansas is the most populated county within the state, and is home to four of Kansas’ ten largest cities. Johnson County currently has 597,630 residents, which is a 32.5% increase from 2000. Nearly 61.7% of working residents hold a bachelor’s degree or higher, making Johnson County the most educated county in the Kansas City metro. As a result, the county boasts a wide array of office developments, major employers, high-end restaurants, and shops that cater to the strong demographics. There is a highly-concentrated amount of Class A office parks, retail centers and entertainment venues are located in the county, which are a draw to resident’s metro-wide. In addition to the commercial developments, many well-established neighborhoods and award-winning schools are located in the area.

In 2018, Johnson County had a household median income of $84,228, which is well-above the metro average of $58,919. The 2018 median home value was $224,429, which is higher than both the metro and national average. Currently, nearly 71% of households in Johnson County are owner-occupied.

BASS PRO

PARK PLACE

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MARKET OVERVIEW

Olathe is conveniently located allowing easy access to all portions of the metro. Olathe has great accessibility to Kansas City through Interstates 35 and 435, US Highways 56 and 169, along with State Highways K-7 and K-10. Within minutes, residents of Olathe can be in downtown Kansas City, the Country Club Plaza area, or anywhere in the metropolitan suburbs. Olathe offers a wide array of amenities to be enjoyed by the residents. Nationally acclaimed schools along with several parks, walking trails, and golf courses make living in the community an attractive option. Olathe is a city that is populated with young, well-educated families. The median age for residents of Olathe is 34.1. The median income is above the metro average with a reported household income of $84,342 in 2018. The median home value is $203,109 which is much higher than the metro average. Nearly 74% of the homes within Olathe are owner occupied, while the remaining 26% rent.

LIVING IN OLATHE

DEVELOPMENT IN OLATHE

Several commercial developments have recently occurred in Olathe. Along the K-10 corridor recent projects include the Embassy Suites/Olathe Conference Center, Terracon office headquarters, Shawnee Mission Health – Prairie Star Campus expansion, and the recently completed Olathe Soccer Complex, which will also add two new hotels to the immediate area, a 93-room Holiday Inn Express and a 92-room Marriott Townplace Suites. Along the I-35 corridor, several recent big-box industrial developments have been completed within the I-35 Logistics Park, 56 Commerce Center, and Lone Elm Logistics Center. Several other Lone Elm Corridor industrial buildings have recently been completed including the FedEx Smartpost, Lone Elm 515 and Lone Elm 716. Garmin International has also recently completed a 720,000 SF manufacturing and distribution facility on their campus headquarters. In addition to the recent construction and deliveries, the former Great Mall of the Great Plains site will be redeveloped by Woodbury Corporation into a $273 million mixed-use project that will include 150,000 SF of retail, 250,000 SF of entertainment venues, 300 apartments, two hotels and a 4,000-seat multipurpose arena.

119TH CORRIDOR RETAIL

TERRACON

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MARKET OVERVIEW

The City of Olathe is home to several large national and international corporations. One of the most notable companies headquartered in Olathe is Garmin International. Olathe is home to a diverse workforce across all industry sectors. Below is a table of some of the larger companies located in Olathe.

EMPLOYMENT IN OLATHE OLATHE MAJOR EMPLOYERSCOMPANY TYPE EMPLOYEESAIG (AMERICAN INSURANCE GROUP) Insurance, financial 600

CONVERGYS CORPORATION Collection agency call center 950

DILLARD'S Distribution, warehouse 75

DH PACE/OVERHEAD DOOR Distribution 594

FAA/AIR ROUTE TRAFFIC CONTROL CENTER Government 600

FARMERS INSURANCE Insurance claims processing 2315

FEDEX SMARTPOST Delivery services 400

GARMIN INTERNATIONAL Global positioning systems mfg. 3255

HONEYWELL AEROSPACE ELECTRONIC SYSTEMS Electronic/aviation equipment mfg. 850

JOHN DEERE COMPANY Sales and marketing (N.A. Hdq.) 450

JOHNSON COUNTY GOVERNMENT Government 2000

NIC eCommerce government services 220

OLATHE MEDICAL CENTER Health services 2500

PACSUN Retail distribution 180

PEPSI BEVERAGES COMPANY Beverage distribution center 315

SYSCO FOOD SERVICES Food wholesale/distribution 585

TERRACON Engineers (Hdq.) 205

THE GERSON COMPANY Specialty wholesaler, importer, and mfg. 250

TRANSAM TRUCKING Trucking 800

TVH Distribution (N.A. Hdq.) 450

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CONTACT:

Mike YeggySenior Vice President

+1 816 556 1148michael.yeggy@colliers.com

Dan BourkSenior Vice President

+1 816 556 1126dan.bourk@colliers.com

Colliers International | Kansas City4520 Main Street, Ste 1000

Kansas City, MO 64111

REPRESENTATIVE PHOTO