[ www.CapitalPacific.com ]

“operating results are among the best” (see page 11) 15-year ground lease With10% increasesBillions of dollars of industrial expansions currently underway nearby6202 Garth Rd, Baytown, Texas, 77521

[ Actual site]

pollo Tropicalground lease

high growth houston suburb new outparcel to huge upscale kroger marketplace

loT size . . . . . . . . . . . . . . . . . . . 0.97 AC

RenTaBle sf . . . . . . . . . . . . . . 42,253 SF

YeaR BUilT . . . . . . . . . . . . . . . 2016

CURRenT RenT . . . . . . . . . . . . $115,000

lease exPiRaTion . . . . . . . . . 2031

PRICE: $2,300,000CAP: 5.00%

Bob Sannerbsanner@capitalpacific.com | (415) 274-2717CA BRE# 00869657

Listing TeamContact Info

RICK SANNERrsanner@capitalpacific.com | (415) 274-2709CA BRE# 01792433

PROperty Summary

Capital Pacific collaborates. Click here to meet the rest of our San Francisco team.

NEwly buIlt Pollo tRoPICAl, outPARCEl to KRogER IN bAytowN, tX (HoustoN subuRb). bAytowN Is oNE of tHE most vIbRANt AREAs IN HoustoN wItH bIllIoNs of dollARs IN CoNstRuCtIoN PRojECts uNdERwAy, by mAjoR CoRPoRAtE owNERsHIPs (sEE PAgE 4) tHE tENANt Is AddINg 32 uNIts PER yEAR, ANd ACCoRdINg to tHE CEo, Pollo tRoPICAl Is A “uNIquE, oNCE-IN-A-gENERAtIoN bRANd”. (sEE PAgE 11)

KRogER oPENEd mARCH 16tH ANd It Is A “KRogER mARKEtPlACE,” tHE ComPANy’s lARgEst ANd fACIEst CoNCEPt. It INCludEs gouRmEt foods, dElI, bAKERy, fREsH flowERs, ANd HomE dECoR. www.KRogER.Com/toPIC/KRogER-mARKEtPlACE

In Conjuction With TX Licensed Broker: Peter Ellispeter.e@sbcglobal.net | (210) 325-7578

Aaron Susmanasusman@capitalpacific.com | (415) 481-0377CA BRE# 01961568

Tenant is estimated to open in June, 2016

bob SANNERbsanner@capitalpacific.com | (415) 274-2717CA BRE# 00869657

[ Actual site] pollo tropical | 2

15-yEAR AbsolutE NEt gRouNd lEAsE Pollo tRoPICAl IN A HIgH gRowtH HoustoN subuRb

PRoPeRTY hiGhliGhTsThis freestanding restaurant pad is located within the brand new Baytown Marketplace, which is anchored by a 123,000 SF Kroger Marketplace, which opened March 16, 2016. Kroger Marketplace is Kroger’s largest and most upscale concept, with this location being open from 5am to 1am.

The shopping center includes an additional 68,700 SF of retail, which will include Marshalls, PetSmart, Ulta Beauty, Mattress Firm, Supercuts, GNC, Pacific Dental, Jimmy Johns and UPS.

Baytown Marketplace is located adjacent to Academy Sports & Outdoors, Panera Bread, Firehouse Subs, and Carls Jr.

Across the street, on the northeast corner of Garth Road and Hunt Road, is Baytown Plaza, a 145,000 SF neighborhood center anchored by Kohl’s, Michaels and Pier One Imports. Co-tenants include Shoe Carnival, Boot Barn, Olive Garden, Buffalo Wild Wings, Gamestop, Subway, AT&T and Verizon Wireless.

The subject property is just two minutes from San Jacinto Mall, a large regional shopping mall. This mall was sold in July, 2015 and will be partially torn down and redeveloped as an open-air retail complex. The three anchor stores, Macy’s, JC Penney and Sears, will remain.

major suburb houses some of the largest petrochemical facilities in the USa with multiple huge expansions currently underway (see page 4)

core characteristicsThis is a highly trafficked area with 25,000+ vehicles per day passing directly in front of the subject property, plus 82,000+ along I-10 (located 5 minutes north).

• Located on the main retail corridor in Baytown, TX

• Only freestanding QSR pad directly in front of Kroger

• See pages 10 and 11 for more information about Pollo Tropical

lease

15-year lease; rental increases of 10% every 5 years and in the option periods

All expenses are administered directly by tenant

[ Actual site] pollo tropical | 3

Billions of dollaRs of new BaYTown PRojeCTs Baytown and the surrounding area are home to some of America’s largest petrochemical plants, the largest employers being Exxon Mobil and Chevron Phillips. Petroleum-based ingredients are the major components of the petrochemicals produced here.

The big price drop in natural gas has made a huge difference for these companies. First, ethane, a derivative of natural gas, is a direct ingredient to make ethylene. Ethylene is the most commonly produced petrochemical, used as the “root chemical” to make plastics, resins, adhesives, etc. Second, to process (or “crack”) this ethane into ethylene necessitates that it be heated to extremely high temperatures using whatever fuel is most economic, which is natural gas.

Both the above companies are under construction on multi-billion-dollar ethane crackers in Baytown. These huge facilities provide thousands of construction jobs and up to 1,500 permanent positions. These permanent petrochemical positions require a great deal of skill, are often dangerous, and highly paid. According to a reputable source, the average blue-collar Texas worker in this industry earns $100,000. See article links below for more info:

ExxonMobil Chemical Company Begins Multi-Billion Dollar Expansion Project in Baytown, TX

Cheveron Phillips Chemical breaks ground on ethane cracker

$400 million aiR PRodUCTs and ChemiCals BaYTown PlanT In early January, Air Products and Chemicals, Inc. announced it would build a $400 million plant that will be completed in 2018. It will produce hydrogen and carbon monoxide, which will be shipped by pipeline.

500,000 sf BaYTown indUsTRial develoPmenT A developer has just begun construction in Baytown on the first of three 500,000 SF industrial spec buildings.

200-aCRe mixed Use develoPmenT in BaYTown Another developer has announced a major 200-acre mixed use project in Baytown. It will include single family, apartments, hotels, retail, and offices; and the developer intends to begin this year. The November Houston Chronicle article on this development stated “Extensive petrochemical plant construction is underway, miles of rail line are being laid, and the [2016)] opening of [the] expanded Panama Canal is raising the prospect of more prosperity for [Baytown].”

Baytown Development projects

Billions of dollars in new development projects to bring increased prosperity to Baytown

[ surrounding retail] pollo tropical | 4

aerial

n m

ain

stre

et

n m

ain

stre

et

san jacinto drive

Rollingbrook

drive

massey Tompkins Road

w Cedar Bayou lynchburg Road

e Cedar Bayou lynchburg Road

Garth

Roa

d

n m

ain

stre

et

Garth

Roa

d

1010

146

330

146

GOOSE CREEK COUNTRY

CLUB

harlem elementary

alamo elementary

Crockett elementary

victoria walker elementary

dr. antonio Bañuelos elementary

Ross s. sterling high school

Baytown Christian academy

Baytown jr. high school

Cedar Bayou jr. high school

san jaCinTo mall

BaYTown villaGe

HOUSTON

10

BAYTOWN AIRPORT25,380 DAILY

82,340 DAILY

aCRoss The sTReeT fRom 145,000 sf kohl’s, miChaels & PieR one imPoRTs anChoRed CenTeR

pollo tropical | 5

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

income & expense

PRICE $2,300,000Price Per Square Foot: $54.43

Capitalization Rate: 5.00%

Total Rentable Area (SF): 42,253

Lot Size (AC): 0.97

STABILIZED INCOME Per Square FootScheduled Rent $2.72 $115,000

Effective Gross Income $2.72 $115,000

LESS Per Square FootTaxes NNN $0.00

Insurance NNN $0.00

Total Operating Expenses NNN $0.00

EQUALS NET OPERATING INCOME $115,000

*The building within the premises is 3,400 square feet

[ Actual site]

pollo tropical | 6

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

rent roll

TENANT INFO LEASE TERMS RENT SUMMARY

Tenant Name Sq. Ft. Term Current Rent

Monthly Rent

Yearly Rent

Monthly Rent/FT

Yearly Rent/FT

Pollo Tropical 42,253 (A) 1 (B) 5 $115,000 $9,583 $115,000 $0.23 $2.72

6 10 $10,542 $126,500 $0.25 $2.99

11 15 $11,596 $139,150 $0.27 $3.29

Option 1 16 20 $12,755 $153,065 $0.30 $3.62

Option 2 21 25 $14,031 $168,371 $0.33 $3.98

Option 3 26 30 $15,434 $185,208 $0.37 $4.38

Option 4 31 35 $16,977 $203,729 $0.40 $4.82

Option 5 36 40 $18,675 $224,102 $0.44 $5.30

Totals: 42,253 $115,000 $9,583 $115,000 $0.23 $2.72

(A) The building within the premises is 3,400 square feet (B) Lease start is estimated for June, 2016

[ surrounding retail] pollo tropical | 7

site plan

Garth Road

KROGER FUEL STATION

hunt Road

J & J ASIAN CAFE

KROGER OPENED IN MARCh AND

POLLO TROPICAL IS ESTIMATED TO OPEN IN JUNE

25,380 dailYI-10 10

Lease pending

HOUSTON

pollo tropical | 8

site plan

siTe Plan keY

PARCEL OUTLINE:

LAND AREA: 42,253 SF

BUILDING AREA: 3,400 SF

INGRESS/EGRESS:

KROGER mARKETPLACE

HOUSTON

Garth Road 25,380 dailY

I-10 10

pollo tropical | 9

ABOUT POLLO TROPICAL(SEE ALSO THE FOLLOWING PAGE)

Pollo Tropical, a member of Fiesta Restaurant Group, Inc. (NASDAQ: FRGI), is a restaurant chain headquartered in Miami, Florida. Specializing in Caribbean cuisine, Pollo Tropical is best known for its marinated and grilled chicken and various side dishes such as black beans and rice. The restaurant offers made-from-scratch cooking, fresh salsa bars, drive-thru service, and catering.

Pollo Tropical operates about 190 locations domestically and internationally. Within the U.S., Pollo Tropical owns and operates all of its restaurants, with the exception of “institutional” locations such as airports and universities.

FRGI owns one other restaurant chain: Taco Cabana. Total sales of FRGI are about $687 million, with net worth of $244 million. Pollo Tropical provides about 53% of the total sales but about 63% of the total profits of FRGI. Net income for FRGI in 2015 was $38.5 million. The market cap for FRGI is about $824 million.

SEE NEXT PAGE

tenant overview

[ REPRESENTATIVE PhOTO ] [ REPRESENTATIVE PhOTO ]

www.pollotropical.com

2015 RevenUe $367 million

nUmBeR of loCaTions 190

pollo tropical | 10

IMPORTANT NEWS FROM POLLO TROPICALOn February 24,2016, the parent company, FRGI (see previous page) issued an important - and quite positive - news release.

The announcement stated that the strategic decision has been made to “spin-off” the slower-growing and less profitable Taco Cabana brand into a separate company, within the next two years. Thus, the only unit remaining within FRGI would be Pollo Tropical; moreover, FRGI would then change its corporate name to “Pollo Tropical.”

Therefore, at that time, the tenant here, instead of being, as it is now, the larger of two subsidiaries of a public company, would become itself a public company.

In the spin-off, shareholders of FRGI would be issued shares of a to-be-formed company, “Taco Cabana”. These shareholders would then own shares in two public companies: Taco Cabana and (the newly-renamed) Pollo Tropical.

Just after this announcement, the stock price of FRGI rose about 8%.

In the press release of February 24, the CEO stated:

“Pollo Tropical is a unique, once-in-a generation brand and it has been our growth engine”

“The Pollo Tropical brand has delivered operating metrics and results which are considered among the best in the fast casual segment.”

By way of accentuating the growth differential, FRGI announced that, in 2015, it opened just two Taco Cabanas. But it opened 32 Pollo Tropicals in 2015, and anticipates opening about the same in 2016.

SEE PREVIOUS PAGE

tenant overview continued

[ REPRESENTATIVE PhOTO ]

www.pollotropical.com

pollo tropical | 11

2015 HOUSEHOLD INCOmES

POPULATION

LARGE EmPLOYERS IN BAYTOWN

demographics & regional map

Employer # of Employees*ExxonMobil 3,800GCCISD 3,000Houston Methodist San Jacinto Hospital 1,700Covestro (manufacturer of high-tech polymers) 1,100City of Baytown 800Chevron Phillips 800*Approximate

82,340 DAILY

BAYTOWNHOUSTON

31 MIN26 MILES

3-Mile 5-Mile

2010 38,660 92,3142015 42,751 99,6332020 47,280 108,157

3-Mile 5-Mile

Average $66,541 $65,412

pollo tropical | 12

aBoUT BaYTown, Tx

Baytown is within Harris County 26 miles east of downtown Houston. Located within the Houston-The Woodlands-Sugar Land metropolitan area, Baytown lies along State Highway 146 and Interstate 10. It is at the mouth of the San Jacinto River on Galveston Bay and is the fourth-largest city within the Houston metropolitan area. Baytown had an estimated population of 76,000 in 2014.

The centerpieces of Baytown’s economy are three industrial districts that primarily support petroleum and petrochemical processing. The anchors of the business community are Exxon Mobil, Covestro, and Chevron Phillips. In addition, Baytown is home to Cedar Crossing Industrial Park, which has attracted many top-tier companies with significant operations. The park is considered the world’s fifth largest industrial park and the largest on the Gulf Coast.

This area is served by Lee College, a two-year junior college. Baytown is also served by the Goose Creek Consolidated Independent School District. The district has 14 elementary schools, 5 junior highs, 3 high schools, a career center, and two alternative centers for education.

There are billions of dollars of construction on-going right now in Baytown (see page 4 for details).

4th largest city in houston MSA

location

pollo tropical | 13

In conjuction With TX licensed broker: Peter Ellis | peter.e@sbcglobal.net | (210) 325-7578

A unique HUMANRESULTS-DRIVEN client experience

The CaPiTal PaCifiC exPeRienCe - oUR dailY CommiTmenT To oUR ClienTs

[ www.CapitalPacific.com ]

[ Copyright © 2016 Capital Pacific ]

Capital Pacific collaborates. Click here to meet the rest of our San Francisco team.

john andReini

zandY smiTh

GReGG sTeelekaRla zens

dave lUCas

joe CaCCamo

RiCk sanneRrsanner@capitalpacific.com | (415) 274-2709 CA BRE# 01792433

jaCk navaRRa

ChRis PeTeRscpeters@capitalpacific.com | (415) 274-2703 CA BRE# 01339983

BoB sanneRbsanner@capitalpacific.com | (415) 274-2717 CA BRE# 00869657

aaRon sUsmanasusman@capitalpacific.com | (415) 481-0377 CA BRE# 01961568

ChRis kosTaneCki zeB RiPPle

[ Actual site]

10-10-11

B efore working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord

(owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner’s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer’s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly. IF THE BROKER REPRESENTS THE OWNER: The broker becomes the owner’s agent by entering into an agreement with the owner, usually through a written - listing agreement, or by agreeing to act as a subagent by accepting an offer of subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner’s agent anything the buyer would not want the owner to know because an owner’s agent must disclose to the owner any material information known to the agent. IF THE BROKER REPRESENTS THE BUYER: The broker becomes the buyer’s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer’s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer’s agent anything the owner would not want the buyer to know because a buyer’s agent must disclose to the buyer any material information known to the agent. IF THE BROKER ACTS AS AN INTERMEDIARY: A broker may act as an intermediary between the parties if the broker complies with The Texas Real Estate License Act. The broker must obtain the written consent of each party to the transaction to act as an

Approved by the Texas Real Estate Commission for Voluntary Use Texas law requires all real estate licensees to give the following information about

brokerage services to prospective buyers, tenants, sellers and landlords.

Information About Brokerage Services

Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records.

intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermediary in a transaction:

(1) shall treat all parties honestly;

(2) may not disclose that the owner will accept a price less that the asking price unless authorized in writing to do so by the owner;

(3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and

(4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property.

With the parties’ consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party. If you choose to have a broker represent you, you should enter into a written agreement with the broker that clearly establishes the broker’s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding.

Buyer, Seller, Landlord or Tenant Date

Texas Real Estate Brokers and Salespersons are licensed and regulated by the Texas Real Estate Commission (TREC). If you have a question or complaint regarding a real estate licensee, you should contact TREC at P.O. Box 12188, Austin, Texas 78711-2188 , 512-936-3000 (http://www.trec.texas.gov)

TREC No. OP-K