JACK IN THE BOX 564 E PALMDALE BLVD | PALMDALE, CA

ABSOLUTE NNN SINGLE TENANTINVESTMENT OPPORTUNITY

EXCLUSIVELYLISTED

MITCHELL S. NEFF NNN & Retail Investment SalesAssociate, Capital MarketsDirect: +1 949 372 4898Mobile: +1 760 989 2557mitchell.neff@cushwake.comLicense CA 01938395

G. JOSEPH LISINGManaging DirectorCapital Markets, AmericasDirect: +1 949 372 4896Mobile: +1 951 236 5759joseph.lising@cushwake.comLicense CA 01248258

JESSICA LAWNNN & Retail Investment SalesAssociate, Capital MarketsDirect: +1 949 372 4891Mobile: +1 310 882 1788jessica.law@cushwake.comLicense CA 02086692

OFFERING MEMORANDUM DISCLAIMER

The material contained in this Offering Memorandum is confidential and for the purpose of considering the purchase of the Property described herein. It is subject to the terms and provisions of the Confidentiality Agreement signed by the recipient of this material and is not to be used for any purpose or made available to any other person without the express written consent of Cushman & Wakefield of California, Inc. (“Broker”).

This Offering Memorandum was prepared by Broker solely for the use of prospective purchasers of (the “Property”). Neither Broker, the “Seller” nor any of their respective officers, employees or agents, make any representation or warranty, express or implied, as to the completeness or the accuracy of the material contained in the Offering Memorandum or any of its contents, and no legal commitments or obligations shall arise by reason of this package or any of its contents. Seller reserves the right to eliminate any portion or all of the Property from any offer for sale at any time prior to the completion of a binding contract of sale executed by both Seller and a prospective purchaser.

Prospective purchasers of the Property are advised (i) that changes may have occurred in the condition of the Property since the time of this Offering Memorandum or the financial statements therein were prepared and that (ii) all financial projections are provided for general reference purposes only in that they are based on assumptions relating to the general economy, competition, and other factors beyond the control of Broker and the Seller and, therefore, are subject to material variation. Prospective purchasers of the Property are advised and encouraged to conduct their own comprehensive review and analysis of the Property.

The Offering Memorandum is a solicitation of interest only and is not an offer to sell the Property. The Seller and Broker expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and expressly reserve the right, at their sole discretion, to terminate discussions with any entity at any time with or without notice. The Seller shall have no legal commitment or obligations to any entity reviewing the Offering Memorandum or making an offer to purchase the Property unless and until a written agreement satisfactory to the Seller has been fully executed, delivered, and approved by the Seller and any conditions to the Seller thereunder have been satisfied or waived.

This Offering Memorandum is confidential. By accepting the Offering Memorandum, you agree (i) that you hold and treat the Offering Memorandum and its contents in the strictest confidence, (ii) that you will not photocopy or duplicate any part of the Offering Memorandum, (iii) that you will not disclose the Offering Memorandum or any of its contents to any other entity without the prior written authorization of Broker and (iv) that you will not use the Offering Memorandum in any fashion or manner detrimental to the interest of the Seller or Broker.

The terms and conditions stated in this section will relate to all of the sections of the package as if stated independently therein. If, after reviewing this package, you have no further interest in purchasing the Property at this time, kindly return this brochure to the Broker at your earliest possible convenience.

ABSOLUTE NET LEASE• Tenant pays for CAM, taxes, insurance and all

maintenance and repairs for the property• Zero landlord responsibilities• Management free, ideal for passive investors

STRONG SALES• Corporate guaranteed, credit tenant• Long term tenant

RENTAL INCREASES• 8% increases every 5 years• Growing NOI to hedge against inflation

STRONG DEMOGRAPHICS• Population of 138,911 within 5 miles• Demographic is target market of tenant

SIGNALIZED HARD CORNER• High visibility with ease of access and drive-thru• Desirable location in close proximity to highways

Cushman & Wakefield is pleased to offer the opportunity to acquire the fee simple interest in an absolute triple-net leased, corporate guaranteed Jack in the Box property in Palmdale, California.

Jack in the Box has been a long term tenant at this location on a 18-year term lease, with 2.4 years remaining and four 5-year options to extend. The lease features 8% rent increases every 5 years throughout the original lease term and at the beginning of each option period, providing for a great hedge against inflation.

The asset consists of a 2176 SF freestanding building equipped with a drive-thru on a 0.51 AC lot, that is located on the signalized hard corner of E Palmdale Blvd and 6th St E with close proximity to highways. This property offers high visibility and ease of access.

The local area has a total population of 138,911 within 5 miles with demographics that meet the ideal target market of Jack in the Box, contributing to the store’s strong sales performance.

INVESTMENT HIGHLIGHTS

ABOUT THE COMPANY

Jack in the Box Inc. (NASDAQ: JACK) is a restaurant company based in San Diego that operates and franchises Jack in the Box® restaurants, one of the nation’s largest hamburger chains, with more than 2,200 restaurants in 21 states.

As the first major hamburger chain to develop and expand the concept of drive-thru dining, Jack in the Box has always emphasized on-the-go convenience, with approximately half-billion guests served annually buying food at the drive-thru or for take-out. Jack in the Box pioneered a number of firsts in the quick-serve industry, including menu items that are now staples on most fast-food menu boards, like the breakfast sandwich and portable salads.

Today, Jack in the Box offers a selection of distinctive, innovative products targeted at the fast-food consumer, including hamburgers, specialty sandwiches, salads and real ice cream shakes. The company’s menu also features Jack’s Deals, which includes value-priced products like tacos, chicken nuggets, a chicken sandwich and a Jr. Bacon Cheeseburger.

HEADQUARTERSSAN DIEGO, CALIFORNIA

LOCATIONS2,200 RESTAURANTS IN 21 STATES

2019 REVENUE$950 MILLION U.S. DOLLARS

WWW.JACKINTHEBOX.COM

TENANT OVERVIEW

MARKET OVERVIEW

Palmdale is a city in northern Los Angeles County in the U.S. state of California. The city lies in the Antelope Valley region of Southern California. The San Gabriel Mountains separate Palmdale from the city of Los Angeles to the south.

Over the last 25 years, Palmdale has consistently been ranked among the top 25 fastest growing cities in the United States (based on percentage change). Palmdale, CA has a population of 156,823 and is the 161st largest city in the United States. The population density is 1,478 per sq mi which is 477% higher than the California average and 1532% higher than the national average.

The most important industry for Palmdale is the aerospace industry, even giving itself the nickname “aerospace capital of the United States”, and has been the site of research, development, final assembly and flight testing of aircrafts that have been used in the United States Air Force, NASA and air forces and airlines around the world. Other manufacturing companies have relocated to Palmdale seeking more affordable land, proximity to Palmdale Airport, and special tax breaks.

Onion are the most valued crop that grows in Palmdale, in addition to alfalfa, wheat, fruit, oats and barley grown in the region.

MARKET OVERVIEW

POPULATION 1 Mile 3 Mile 5 Mile

2019 Total Population: 19,715 84,672 138,911

2024 Population: 20,262 87,234 141,291

Pop Growth 2019-2024: 2.77% 3.03% 1.71%

Average Age: 30.80 33.70 34.30

INVESTMENT SUMMARY

ANNUALIZED OPERATING DATATERM YEAR START END INCREASE RENT RENT/SF

Original 1 - 5 7/1/2004 6/30/2009 - $77,503 $35.62

Original 6 - 10 7/1/2009 6/30/2014 8.00% $83,703 $38.47

Original 11 - 15 7/1/2014 6/30/2019 8.00% $90,399 $41.54

Original 16 - 18 7/1/2019 6/30/2022 8.00% $97,631 $44.87

Option 1 19 - 23 7/1/2022 6/30/2027 8.00% $105,442 $48.46

Option 2 24 - 28 7/1/2027 6/30/2032 8.00% $113,877 $52.33

Option 3 29 - 33 7/1/2032 6/30/2037 8.00% $122,987 $56.52

Option 4 34 - 38 7/1/2037 6/30/2042 8.00% $132,826 $61.04

• Rent Increase will happen year 19 (1st Option), each following increase shall take place at the beginning of each option period.

PROPERTY DETAILSProperty Jack in the Box

Property Address 564 E Palmdale Blvd, Palmdale, CA 93550

APN 3009-007-024

GLA (SF) 2,176

Lot (AC) 0.51

Year Built 1969

Type of Ownership Fee Simple

LEASE SUMMARYTenant Jack in the Box, Inc.

Lease Type Absolute Net

Lease Guarantor Corporate

Roof & Structure Tenant Responsibility

Original Lease Term 18 Years

Lease Commencement 7/1/2004

Rent Commencement 7/1/2004

Lease Expiration 6/30/2022

Years Remaining 2.4 Year

Current Rent $97,631

Rental Increases 8.00% Every 5 Years

Options to Renew (4) 5-Year Options

Right of First Refusal Yes, 14 Days

THE OFFERING

Purchase Price $2,400,000

CAP Rate 4.07%

Annual Rent $97,631

PROPERTY PHOTOS

AERIAL VIEW

6TH ST E

21,000± VDP

E PALMDALE BLVD

RAILROAD

FAMILY CARTITLE LOANS

PAWN BIG

FOODPLUS

MI RANCHOMEXICAN GRILL

SOYA

7-ELEVENBANK OF AMERICA

ANTELOPEVALLEY BOYS &

GIRLSPALMDALE ANIMAL

CARE CENTER

PALMDALE CITYLIBRARY