KRISPY KREME DOUGHNUTSOFFERING MEMORANDUM 8018 CONCORD MILLS BOULEVARD | CONCORD, NORTH CAROLINA

2 KRISPY KREME | CONCORD, NC NKF NET LEASE PRACTICE GROUP

AFFILIATED BUSINESS DISCLOSURE & CONFIDENTIALITY AGREEMENTThis Offering Memorandum has been prepared by NKF Capital Markets and has been obtained from sources believed reliable. While we do not doubt its accuracy we make no guarantee, warranty or representation about it. It is your responsibility to confirm, independently, its accuracy and completeness. No representation is made by NKF or Owner as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied on as a promise or representation as to the future performance of the property. Although the information contained herein is believed to be correct, Owner and its employees disclaim any responsibility for inac-curacies and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, NKF, Owner and their employees disclaim any and all liability for representations and warranties, expressed and implied, contained in, or for omissions from, the Offering Memorandum or any other written or oral com-munication transmitted or made available to the recipient.

This Offering Memorandum and the contents, except such information, which is a matter of public record or is provided in sources available to the public, are of a con-fidential nature. By accepting this Offering Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not photocopy or duplicate it, that you will not disclose this Offering Memorandum or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agree-ment of confidentiality) without the prior written authorization of Owner or NKF and that you will use the information in this Offering Memorandum for the sole purpose of evaluating your interest in the property and you will not use the Offering Memorandum or any of the contents in any fashion or manner detrimental to the interest of Owner or NKF. If you have no interest in the property, please return the Offering Memorandum forthwith.

The Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of the property or Owner since the date of prepa-ration of the Offering Memorandum. Analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the prospective purchaser. Additional information and an opportunity to inspect the property will be made available upon written request to interested and qualified prospective investors. Owner and NKF each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the property and/or terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligations to any entity reviewing this Offering Memorandum or making an offer to purchase the property unless and until such offer is approved by Owner, a written agreement for the purchase of the property has been fully executed, delivered and approved by Owner and its legal counsel, and any obligations set by Owner thereunder have been satisfied or waived.

OFFERED EXCLUSIVELY BYNEWMARK KNIGHT FRANKNET LEASE PRACTICE GROUP

KEN HEDRICKExecutive Managing Director918.878.9540 ken.hedrick@ngkf.com

JERRY HOPKINSSenior Managing Director918.878.9536 jerry.hopkins@ngkf.com

D. ANDREW RAGSDALE, Esq.Senior Managing Director918.878.9535 andrew.ragsdale@ngkf.com

In association with: BERT SANDERSVice ChairmanNorth Carolina Licensee

Net Lease Practice Group11122 South Yale Avenue | Suite ATulsa, OK 74137P: 918.878.9542

KRISPY KREME DOUGHNUTS8018 CONCORD MILLS BOULEVARD | CONCORD, NORTH CAROLINA

THE TEAM2 KRISPY KREME | CONCORD, NC NKF NET LEASE PRACTICE GROUP

3 KRISPY KREME | CONCORD, NC NKF NET LEASE PRACTICE GROUP

EXECUTIVE SUMMARYAddress 8018 Concord Mills Boulevard

Concord, North Carolina

Tenant/Guarantor Krispy Kreme Doughnut Corporation

Use Retail/Restaurant

Acreage 1.442 Acres

Rentable Building Area 4,945 SF

Expense Structure Absolute NNN Ground Lease

Rent Increases 10% Every 5 Years, and in each Option Period

Rent Commencement Date Estimated July, 2019

Primary Term Expiration Estimated July, 2039

Initial Term 20 Years

Current Annual NOI $275,000

Lease Efffective Date April 4, 2018

Interest Ground Lease

Year Built 2019

INVESTMENT HIGHLIGHTS20 YEAR GROUND LEASE (ABSOLUTE NNN)The Property is 100% leased to Krispy Kreme under a brand new 20 year Absolute NNN

Ground Lease.

BRAND NEW PROTOTYPE CONSTRUCTION The Subject Property is a newly developed Krispy Kreme prototype design.

I-85 LOCATION – ADJACENT TO CHARLOTTE MOTOR SPEEDWAY the Subject Property boasts a pride of ownership location, just of I-85 and adjacent to Charlotte Motor Speedway.

SCHEDULED 10% RENT INCREASES The Subject Property boasts scheduled 10% rent increases every 5 years, throughout the primary term and option periods.

CLOSE PROXIMITY TO KRISPY KREME HEADQUARTERS The Subject Property is located approximately 70 miles/1Hr from Krispy Kreme’s North American Headquarters in Winston-Salem, NC.

EXTREME HIGH GROWTH AREAThe subject property is well positioned in a high growth market. With a 32% growth in population within a 1 mile radius and a 20% growth within 5 miles.

PURCHASE PRICE $5,789,474CAP RATE

4.75%

4 KRISPY KREME | CONCORD, NC NKF NET LEASE PRACTICE GROUP

AERIAL MAP

Charlotte Motor SpeedwayConcord Mills Mall

132,000 VPD

Concord Mills Blvd 43,500 VPD

Concord-Padgett Regional Airport

zMAX

Dra

gway

AERIAL MAP

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THE INVESTMENT

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6 KRISPY KREME | CONCORD, NC NKF NET LEASE PRACTICE GROUP6 KRISPY KREME | CONCORD, NC NKF NET LEASE PRACTICE GROUP

Krispy Kreme Doughnuts

ADDRESS 8018 Concord Mills BoulevardConcord, North Carolina

TENANT/ GUARANTOR Krispy Kreme Doughnut Corporation

LEASE EFFECTIVE DATE April 4, 2018

RENT COMMENCEMENT DATE Estimated July 2019

PRIMARY TERM EXPIRATION Estimated July 2039

REMAINING TERM 20 Years

OPTION PERIODS Three, Five Year Renewal Options

ANNUAL NOI $275,000

RENT INCREASES 10% Every 5 Years, and in each Option Period

LEASE TYPE Absolute NNN Ground Lease

UTILITIES Tenant Responsibility

TAXES Tenant Responsibility

INSURANCE Tenant Responsibility

ACREAGE 1.442 Acres

ESTOPPEL 10 Business Day Response Period

ROFR N/A

LEASE

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7 KRISPY KREME | CONCORD, NC NKF NET LEASE PRACTICE GROUP

RENT SCHEDULE

Year Annual Rent Rent Increase %

YEARS 1-5 $275,000 10%

YEARS 6-10 $302,500 10%

YEARS 11-15 $332,750 10%

YEARS 16-20 $366,025 10%

RENEWAL OPTION 1 405,627 10%

RENEWAL OPTION 2 $442,890 10%

RENEWAL OPTION 3 $487,179 10%

PROPERTY DETAILSKrispy Kreme Doughnuts

RENTABLE BUILDING AREA 4,945 SF

ACREAGE 1.442 Acres

YEAR BUILT 2019

THE TENANT

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9 KRISPY KREME | CONCORD, NC NKF NET LEASE PRACTICE GROUP

Krispy Kreme Doughnuts, Inc. is an American doughnut company and coffeehouse chain founded in Winston-Salem, North Carolina. Krispy Kreme was founded by Vernon Rudolph in 1937, who rented a building in what is now historic Old Salem in Winston-Salem, North Carolina, and thereafter began selling to local grocery stores. Steady growth preceded an ambitious expansion as a public company in the period 2000-2016.

On April 5, 2000, the corporation went public on the NASDAQ at $21 a share, using the ticker symbol KREM. On May 17, 2001, Krispy Kreme switched to the New York Stock Exchange, with a ticker symbol of KKD. In 2016, the company returned to private ownership under JAB Holding Company, a private Luxembourg-based firm. JAB Holding is a privately held German conglomerate, who owns a number of other consumer good companies, including; Panera Bread, Caribou Coffee, Einstein Bros. Bagels, Keurig Brands, and Peet’s Coffee.

Today Krispy Kreme’s US based offices are located in Winston Salem, and the company operates approximately 1,300 locations throughout 31 different countries. Additionally, Krispy Kreme markets its donuts through grocery stores and supermarkets throughout the United States.

YEAR FOUNDED1937

HEADQUARTERSWinston-Salem, North Carolina

LOCATIONS1,300+

2018 Brand of the Year

REVENUE$518 Million (as of 2016)NET INCOME$32.4 Million (as of 2016)

WEBSITEwww.krispykreme.com/

CONCORD, NC

11 KRISPY KREME | CONCORD, NC NKF NET LEASE PRACTICE GROUP

Concord, North CarolinaConcord is the county seat and the largest city in Cabarrus County, North Carolina.

Concord is the second largest city in the Charlotte Metropolitan Area. It is the home to

some of North Carolina’s top tourist destinations, including NASCAR’s Charlotte Motor

Speedway and Concord Mills, a 1.4 million square foot shopping mall. Interstate 85

links Concord directly to Greensboro to the northeast and Charlotte to the southwest.

Charlotte, North CarolinaCharlotte is the most populous city in the U.S. state of North Carolina and one of

the fastest growing major city in the united states. In 2017, the U.S. Census Bureau

estimated the population was 859,035, making it the 17th-most populous city in the

United States. The Charlotte metropolitan area’s population ranks 22nd in the U.S.,

and had a 2016 population of 2,474,314. The Charlotte metropolitan area is part of

a sixteen-county market region or combined statistical area with a 2016 census-

estimated population of 2,632,249.

Home to the corporate headquarters of Bank of America and the east coast operations

of Wells Fargo, Charlotte is the nation’s third-largest banking center behind Ney York

and San Francisco. Charlotte has six Fortune 500 companies in its metropolitan area:

Bank of America, Lowe’s, Duke Energy, Nucor (steel producer), Sonic Automotive and

Sealed Air Corp. The Charlotte area is an increasingly growing trucking and freight

transportation hub for the East Coast.

Located just 7.9 miles from Downtown, Charlotte Douglas International Airport is the

ninth busiest airport in America. As of September 2017, it is the second largest hub

for American Airlines after Dallas/Fort Worth International Airport, with service to 161

domestic and international destinations.

LOCATION & DEMOGRAPHICS

Winston-Salem

Concord

Subject Property is located 59.9 miles from Krispy Kreme U.S. based headquarters in Winston-Salem.

POPULATION 1 MILE 3 MILE 5 MILE

2023 PROJECTION 2,918 44,136 144,202

2018 ESTIMATE 2,598 39,983 131,020

2010 CENSUS 1,963 33,509 109,658

GROWTH 2018-2023 12.32% 10.39% 10.06%

GROWTH 2010-2018 32.35% 19.32% 19.48%

HOUSEHOLDS

2023 PROJECTION 1,253 15,859 52,834

2018 ESTIMATE 1,114 14,379 47,952

2010 CENSUS 828 12,061 40,126

GROWTH 2018 - 2023 12.48% 10.29% 10.18%

GROWTH 2010 - 2018 34.54% 19.22% 19.50%

2018 AVG HOUSEHOLD INCOME $81,961 $102,316 $91,628

2018 MED HOUSEHOLD INCOME $72,765 $85,011 $73,528

8018 CONCORD MILLS BOULEVARDCONCORD, NORTH CAROLINA

OFFERED EXCLUSIVELY BYNewmark Knight Frank | Net Lease Practice Group

Net Lease Practice Group | 11122 South Yale Avenue | Suite A | Tulsa, OK 74137

KEN HEDRICKExecutive Managing Director918.878.9540 ken.hedrick@ngkf.com

D. ANDREW RAGSDALE, Esq.Senior Managing Director918.878.9535 andrew.ragsdale@ngkf.com

JERRY HOPKINSSenior Managing Director918.878.9536 jerry.hopkins@ngkf.com

IN ASSOCIATION WITH:Bert SandersVice ChairmanNorth Carolina Licensee