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Carl’s Jr.7 2 8 N o r t h B i s b e e A v e n u e | W i l l c o x , A Z

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E X E C U T I V E S U M M A R Y

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D o n M o r t e n s e nBROKER OF RECORDLIC # lc635678000 (AZ)

a n d r e w i va n k o v i c hAssociate

andrew. ivankovich@matthews.comDIR 214.692.2037MOB 626.807.3586LIC # 678815 (TX)

B r a d e n C r o c k e t tAVP & Director

braden.crockett@matthews.comDIR 214.692.2040MOB 714.345.6206LIC # 01946071 (CA)

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Subject Property West Rex Allen Drive

North Bris

bee Avenue

• 20-year lease with StarCorp, LLC (145 Units)

• Low price point under $1.5MM

• Absolute NNN investment – No landlord responsibilities

• 20-year lease will commence upon the close of escrow

• Tenant showing Strong Commitment Site by extending the lease for a total of 20 years

• Rare 1.25% annual rent increases – Great hedge against inflation

• Building was renovated in 2013

• Out-positions competitors – Located directly off Interstate-10, this Carl’s Jr. offers the best access out of all competitors

• Prime positioning as the only restaurant and Safeway outparcel

• Relatively Little Competition

• Surrounded by national retailers such as Safeway, McDonald’s, Texaco, Burger King, Circle K and AutoZone as well as Days Inn, Travelodge and Rodeway Inn

• West Coast Real Estate

• Carl Karcher Enterprises (CKE) is one of the largest national QSR concepts in the world and has over 3,100 Carl’s Jr and Hardee’s locations combined

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

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Subject Property West Rex Allen Drive

North Bris

bee Avenue

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Annualized Operating DataNOI Increase Cap Rate

Year 1 $84,900.00 1.25% 6.00%

Year 2 $85,961.25 1.25% 6.08%

Year 3 $87,035.77 1.25% 6.15%

Year 4 $88,123.71 1.25% 6.23%

Year 5 $89,225.26 1.25% 6.31%

Year 6 $90,340.57 1.25% 6.38%

Year 7 $91,469.83 1.25% 6.46%

Year 8 $92,613.20 1.25% 6.55%

Year 9 $93,770.87 1.25% 6.63%

Year 10 $94,943.01 1.25% 6.71%

Year 11 $96,129.79 1.25% 6.79%

Year 12 $97,331.42 1.25% 6.88%

Year 13 $98,548.06 1.25% 6.96%

Year 14 $99,779.91 1.25% 7.05%

Year 15 $101,027.16 1.25% 7.14%

Year 16 $102,290.00 1.25% 7.23%

Year 17 $103,568.62 1.25% 7.32%

Year 18 $104,863.23 1.25% 7.41%

Year 19 $106,174.02 1.25% 7.50%

Year 20 $107,501.20 1.25% 7.60%

C a r l’ s J r .728 North Bisbee AvenueWillcox, AZ 85643

List Price ............................................................................................ $1,415,000

CAP Rate - Current ...................................................................................6.00%

Gross Leasable Area ...................................................................... ± 2,655 SF

Lot Size ..........................................................................................± 0.59 Acres

Year Built / Renovated ................................................................... 1986 / 2013

Tenant Summary

Tenant Trade Name Carl’s Jr.

Type of Ownership Fee Simple

Lease Guarantor Franchisee - Star Corp (145 Units)

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 20 Years

Lease Commencement Date Close of Escrow

Rent Commencement Date Close of Escrow

Lease Expiration Date Close of Escrow

Term Remaining on Lease 20 Years

Increases 1.25% Annual Increases

Options Four, 5-Year Options

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F i n a n c i a l s

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C a r l’ s J r .Carl’s Jr. is an American-based fast food restaurant chain operated by CKE Restaurants Holdings, Inc., with locations primarily in the Western and Southwestern United States. In the spirit of the company’s founder, Carl Karcher, CKE believes it can best share in its success by offering support to its neighbors through its scholarship and charitable giving programs, including the Stars for Heroes campaign which raised $1 Million in 2011. CKE is also working toward greater sustainability with the help of company-wide initiatives, including the corporate Green Team.

STRATEGY

With over 3,600 total CKE franchised and company owned restaurants, and more than 1,500 Carl’s Jr. specific, CKE Restaurants Holdings, Inc. is dedicated to helping franchisees build growing restaurant operations that are sustainable for the long term. To this end, the strategy and core positioning of the Carl’s Jr. banner is oriented to building top-line sales that support franchise profitability via premium product strategy, strong restaurant fundamentals, and cutting-edge advertising. With best-in-class menus, innovative systems, and outstanding brand recognition, the company is poised for sustained growth around the world.

GEOGRAPHIC REACH

As of March 2016, CKE has a total of 3,664 franchised or company-operated restaurants in 44 states and 38 foreign countries and U.S. territories. Carl’s Jr. has announced plans to expand in Ontario, Canada’s “Golden Horseshoe,” a territory that includes Toronto, Mississauga, Oakville, Burlington, Hamilton, Brantford and London.

Company Name Carl’s Jr.

Parent Company Trade Name CKE Restaurants Holdings, Inc.

Ownership Private

No. of Locations ± 1,500

No. of Employees (All) ± 23,000

Headquartered Carpinteria, California

Website www.carlsjr.com

Year Founded 1941

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Oceanside Blvd ± 31,792

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Property Name Carl’s Jr.

Property Address 728 North Bisbee Avenue

Willcox, AZ 85643

Assessor’s Parcel Number 202-43-006F

Site DescriptionNumber of Stories One

Year Built / Renovated 1986 / 2013

Gross Leasable Area (GLA) ± 2,655 SF

Lot Size ± 0.59 Acres (25,700 SF)

Type of Ownership Fee Simple

Parking ± 25 Surface Spaces

Parking Ratio 9.42 : 1,000 SF

Landscaping Professional

Topography Generally Level

p a r c e l m a p

ConstructionFoundation Concrete Slab

Framing Wood

Exterior Masonry

Parking Surface Asphalt

Roof Flat

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Subject Property

Northern Cochise Community Hospital

West Rex Allen Drive North Brisbee Avenue

b i r d ’ s e y e a e r i a l

Willcox is a city located on Interstate 10 in the northern section of the Sulphur Springs Valley. Halfway between Phoenix and El Paso, Texas, Willcox serves as the major trade and service center for agriculture and tourism within Cochise County. The city specializes in customer satisfaction, taking pride in the quality and reliable services it offers residents and visitors alike. There are numerous opportunities for outdoor recreation such as hiking, biking, camping, bird watching and taking in beautiful sunsets. Wilcox is also part of Arizona’s up-and-coming wine country; The Wilcox wine region produces 74% of the wine grapes grown in the entire state. Historic downtown Wilcox is home to some of Willcox wine country tasting rooms, unique shops, restaurants and museums.

Willcox, AZ

P r o p e r t y d e m o g r a p h i c s

POPULATION 3-Mile 5-Mile 10-Mile

2022 Projection 4,957 5,591 6,335

HOUSEHOLDS 3-Mile 5-Mile 10-Mile

2022 Projection 1,857 2,095 2,380

INCOME 3-Mile 5-Mile 10-Mile

2017 Est. Average Household Income

$57,067 $57,693 $58,079

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DISTANCE TO:

SIERRA VISTA, AZ69 miles, 1 hour and 11 minutes driving distance

TUCSON, AZ80.9 miles, 1 hour and 17 minutes driving distance

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Sierra Vista, AZ

Sierra Vista is a city located 75 miles southeast of Tucson, Arizona in Cochise County. As the economic and commercial center for Cochise County and parts of northern Sonora, Mexico, Sierra Vista is the largest of the seven incorporated cities in the county, accounting for one-third of the county’s population. Retailers such as Lowe’s, Home Depot, Walmart, Target and Sears are located in the community. Fort Huachuca, a U.S. Army installation, sits at the northeast of the city and provides a substantial employment base. It is the community’s major employer and primary driving economic force.

The city has been nicknamed the “Hummingbird Capital of the United States” for the abundance of bird species in the nearby Runyon Canyon Preserve and other local canyons. Bird watchers from all over the world are drawn to Sierra Vista to observe and photograph the hundreds of species. There are also numerous outdoor recreational opportunities available nearby at Parker Canyon Lake, the San Pedro Piparian National Conservation Area and the Coronado National Memorial in the Huachuca Mountains.

Sierra Vista is also the heart of the up-and-coming Napa-zona wine country. There are nineteen surrounding wineries in the surrounding area as close as a half hour drive. Many of these wineries have festivals and events throughout the year, drawing wine-lovers from all over.

T O P E M P L O Y E R S

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TUCSON, AZ

Most famously known as the home of the University of Arizona, the city of Tucson is the second-most populated city in Arizona. It is 60 miles north of the U.S.-Mexico border and a major hub for the Union Pacific Railroad’s Sunset Route, which links the Los Angeles ports with the Southern regions of the country.

In recent years, Tucson has experienced one of the highest growth rates in the United States. Much of Tucson’s economic development has been propagated by the development of the University of Arizona, which is currently the second largest employer in the city. Davis-Monthan Air Force Base on the southeastern edge of the city and the US Army Intelligence Center at Fort Huachuca provide many jobs for the region; They have driven the development of a significant number of high-tech industries, including government contractors, in the area. With advanced technology sectors as its foundation, Tucson has earned the nickname “Optics Valley” because of the significant amount of Tucson companies that are involved in the design and manufacture of optics and optoelectronics systems.

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Carl’s Jr. located at 728 North Bisbee Avenue, Willcox, AZ 85643 (“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

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B R A D E N C R O C K E T TAVP & Director

braden.crockett@matthews.comDIR 214.692.2040MOB 714.345.6206LIC # 01946071 (CA)

A N D R E W I VA N K O V I C HAssociate

andrew. ivankovich@matthews.comDIR 214.692.2037MOB 626.807.3586LIC # 678815 (TX)

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D o n M o r t e n s e nBROKER OF RECORDLIC # lc635678000 (AZ)