O F F E R I N G M E M O R A D U M

4235 SOUTH PEORIA AVENUE TULSA, OK 74105

KFC | 10 Year Extension

Representative Photo

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has beenobtained from sources we believe to be reliable. However,Marcus & Millichap has not and will not verify any of thisinformation, nor has Marcus & Millichap conducted anyinvestigation regarding these matters. Marcus & Millichap makesno guarantee, warranty or representation whatsoever about theaccuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’sresponsibility to independently confirm the accuracy andcompleteness of all material information before completing anypurchase. This Marketing Brochure is not a substitute for yourthorough due diligence investigation of this investmentopportunity. Marcus & Millichap expressly denies any obligationto conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in thisMarketing Brochure are for example only and do not representthe current or future performance of this property. The value of anet leased property to you depends on factors that should beevaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisorsshould conduct a careful, independent investigation of any netleased property to determine to your satisfaction with thesuitability of the property for your needs.

Like all real estate investments, this investment carries significantrisks. Buyer and Buyer’s legal and financial advisors must requestand carefully review all legal and financial documents related tothe property and tenant. While the tenant’s past performance atthis or other locations is an important consideration, it is not aguarantee of future success. Similarly, the lease rate for some

properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected saleswith little or no record of actual performance, or comparablerents for the area. Returns are not guaranteed; the tenant and anyguarantors may fail to pay the lease rent or property taxes, or mayfail to comply with other material terms of the lease; cash flowmay be interrupted in part or in whole due to market, economic,environmental or other conditions. Regardless of tenant historyand lease guarantees, Buyer is responsible for conducting his/herown investigation of all matters affecting the intrinsic value of theproperty and the value of any long-term lease, including thelikelihood of locating a replacement tenant if the current tenantshould default or abandon the property, and the lease terms thatBuyer may be able to negotiate with a potential replacementtenant considering the location of the property, and Buyer’s legalability to make alternate use of the property.By accepting this Marketing Brochure you agree to release Marcus& Millichap Real Estate Investment Services and hold it harmlessfrom any kind of claim, cost, expense, or liability arising out ofyour investigation and/or purchase of this net leased property.

CONFIDENTIALITY ANDDISCLAIMER

The information contained in the following Marketing Brochure isproprietary and strictly confidential. It is intended to be reviewedonly by the party receiving it from Marcus & Millichap and shouldnot be made available to any other person or entity without thewritten consent of Marcus & Millichap. This Marketing Brochurehas been prepared to provide summary, unverified information toprospective purchasers, and to establish only a preliminary levelof interest in the subject property. The information containedherein is not a substitute for a thorough due diligenceinvestigation. Marcus & Millichap has not made any investigation,and makes no warranty or representation, with respect to the

income or expenses for the subject property, the future projectedfinancial performance of the property, the size and squarefootage of the property and improvements, the presence orabsence of contaminating substances, PCB’s or asbestos, thecompliance with State and Federal regulations, the physicalcondition of the improvements thereon, or the financial conditionor business prospects of any tenant, or any tenant’s plans orintentions to continue its occupancy of the subject property. Theinformation contained in this Marketing Brochure has beenobtained from sources we believe to be reliable; however, Marcus& Millichap has not verified, and will not verify, any of theinformation contained herein, nor has Marcus & Millichapconducted any investigation regarding these matters and makesno warranty or representation whatsoever regarding the accuracyor completeness of the information provided. All potential buyersmust take appropriate measures to verify all of the informationset forth herein.

NON-ENDORSEMENTNOTICE

Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”)is not affiliated with, sponsored by, or endorsed by anycommercial tenant or lessee identified in this marketing package.The presence of any corporation’s logo or name is not intended toindicate or imply affiliation with, or sponsorship or endorsementby, said corporation of M&M, its affiliates or subsidiaries, or anyagent, product, service, or commercial listing of M&M, and issolely included for the purpose of providing tenant lesseeinformation about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASECONSULT YOUR MARCUS & MILLICHAP AGENT FOR MOREDETAILS.

Confidentiality and Disclaimer

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Generally, almost all KFC lease are NNN with

a majority of KFC stores operated by a franchisee.

The lease includes 7-8% rent increases every five (5)

years. There are some ground leases that are

generally backed by a corporate guaranty.

Most leases do contain 3 to 5, 5-year option periods.

The KFC Corporation based in Louisville, Kentucky, is one of the few brands in America that can boast a decades-long history of success and has been operating for more than 70 years. Currently, KFC operates more than 20,000 outlets, of which, around seven percent are franchisee owned.

Harland Sanders, an honorary Kentucky Colonel, founded Kentucky Fried Chicken in 1930 in the small front room of a gas station in Corbin, Kentucky. The Colonel actively started franchising in 1952. PepsiCo then acquired Kentucky Fried Chicken in 1986, and in 1997, they announced the spin-off of its quick service restaurants - KFC, Taco Bell, and Pizza Hut now known as Yum! Brands, Inc. Headquartered in Louisville, Kentucky, the KFC menu includes their popular Crispy Kentucky Grilled Chicken® and Extra Crispy™ Tenders with home-style sides, Hot Wings™ pieces and freshly made chicken sandwiches.

KFC is owned by Yum! Brands. Other QSRs under the Yum! Brands banner include Pizza Hut and Taco Bell. KFC reported 7% growth in worldwide sales in 2016. KFC plans to couple a return to the basics with a push on the digital front and delivery. Yum! Brands is ranked number 218 on the Fortune 500 list, with revenues exceeding $6 billion in 2016.

Yum! Brands, Inc. (2018 Annual Report READ HERE)

2018 was another year of celebrating and achieving milestones. It’s diverse portfolio of iconic brands generated over $49 billion in system sales and ended the year with over 48,000 global restaurants. Combined across our brands and led by over 2,000 world-class franchisees, we opened a record of eight gross new restaurants per day. Additionally, we made significant progress on our transformation commitments, having achieved our goal of becoming at least 98 percent franchised. Focus on our growth drivers, increased collaboration and a new mindset are clearly fueling improved results.

Their four growth drivers are the foundation on which our sustainable, long-term results are being built. These growth capabilities, outlined below, are the key drivers of same-store sales and net-new unit growth and serve as our guiding principles in all business decisions.

Patel Advisory Group | Marcus & Millichap

Tenant Summary

Yum! Brands, Inc. Ctd.Our four growth drivers are the foundation on which our sustainable, long-term results are being built. These growth capabilities, outlined below, are the key drivers of same-store sales and net-new unit growth and serve as our guiding principles in all business decisions.

1. Distinctive, Relevant & Easy Brands. We will innovate and elevate iconic restaurant brands people trust and champion.

2. Unmatched Franchise Operating Capability. We will recruit and equip the best restaurant operators in the world to deliver great customer experiences using our 3C approach. This includes partners who are Committed to providing consistently bold value and brand strategy. These partners are also Capable to deliver a great customer experience and operational standards. And finally, our partners have Capital — both to grow new units and modernize existing assets.

3. Bold Restaurant Development. We will drive market and franchise unit expansion with strong economics and attractive returns.

4. Unrivaled Culture & Talent. We will leverage culture and people capability to fuel brand performance and franchisee success.

I firmly believe our culture is a competitive advantage for Yum!. With culture as the driving force behind our results, I’m pleased to share the following highlights from 2018:

• Worldwide system sales growth of 5 percent, led by 6 percent growth at KFC, 6 percent at Taco Bell and 1 percent at Pizza Hut

• Same-store sales growth of 2 percent, led by 4 percent growth at Taco Bell and followed by 2 percent at KFC with Pizza Hut even for the year

• Net-new unit growth of 7 percent, including 3,021 gross unit openings, which is 389 more openings than in 2017, and the addition of 1,282 Telepizza units

• Ended the year with over 48,000 global restaurants in approximately 270 brand-country combinations

• Achieved our goal of becoming at least 98 percent franchised, with 856 company units by the end of 2018

• Core operating profit growth flat and in line with expectations

• Returned $2.4 billion of capital to shareholders through share repurchases and dividends

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KENTUCKY F R I ED CHI CKEN

423 5 S OUTH PEOR I A A VENUE TULS A , OKLA HOMA

Known as the Oil Capital of the World after oil was discovered in the region in1901, the Tulsa metro contains a population of nearly 1 million residents. Themetro is composed of Tulsa, Osage, Okmulgee, Rogers, Wagoner, Creek andPawnee counties in northeastern Oklahoma, an area commonly referred to asGreen Country for its vegetation, hilly terrain and numerous lakes. The city ofTulsa is the most populous in the metro, with 406,000 people, followed byBroken Arrow with nearly 111,000 citizens.

Walgreens – Sharonville,OH 4

▪ For many years, petroleum production dominated the economy, which has

now diversified to include telecommunications, structural metals

manufacturing, air transportation and aerospace manufacturing.

▪ Tulsa is headquarters to three Fortune 500 companies: Oneok Inc., NGL

Energy Partners and Williams Cos. Other major companies include QuikTrip;

IC of Oklahoma LLC, one of the largest school bus manufacturers; Verizon;

and Public Service of Oklahoma, the local utility.

▪ The Tulsa Port of Catoosa in Rogers County is the state’s largest port and

connects barge traffic on the Arkansas and Verdigris rivers to ports around

the world via the Mississippi River.

ECONOMY

METRO HIGHLIGHTS

ADVANTAGEOUS LOCATION

The metro’s location in the U.S. provides interstate access to many

major markets, along with rail, air and port connections.

JOB GROWTH

Roughly 19,600 additional jobs are expected during the next five years.

Nearly 60 Fortune 500 companies have a presence in the metro.

AFFORDABLE COST OF LIVING

Tulsa home prices are more affordable than other South Central cities

in the U.S., allowing 66 percent of residents to own a home.

DEMOGRAPHICS

999K

2018POPULATION:

392K

2018HOUSEHOLDS:

36.9

2018MEDIAN AGE:

$52,600

2018 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

38.0U.S. Median:

$58,8004.6%

Growth2018-2023*:

3.6%

Growth2018-2023*:

Tulsa Summary

Top Employers

QuikTrip 19,700

Saint Francis Health System 8,200

Tulsa Public Schools 7,000

Us Beef 7,000

Williams 5,604

Latham & Watkins 4,945

BOK Financial 4,910

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KENTUCKY F R I ED CHI CKEN

423 5 S OUTH PEOR I A A VENUE TULS A , OKLA HOMA

Patel Advisory Group | Marcus & Millichap 5

19,000+ VPD

95,320+ VPD

Downtown Tulsa5 Miles way

29,000+ VPD

Wright Elementary

School 358

Students

Edison Preparatory

School1,236

Students

School of St. Mary336 Students

Walgreens

Eliot Elementary School391 Students

1 Mile 3 Miles 5 MilesPopulation

2023 Estimate 9,793 75,249 188,299

2018 Estimate 9,888 76,531 190,563

2018 Daytime Population 8,368 88,284 285,020

Households

2018 Estimate 5,149 37,540 86,540

Average Household Size 1.92 2.02 2.11

Subject Property

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423 5 S OUTH PEOR I A A VENUE TULS A , OKLA HOMA

The Enclave at Brookside240 Luxury Apartments

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Investment Overview

Marcus & Millichap is pleased to present the exclusive listing for the KFC located at 4235

South Peoria Avenue Tulsa, OK. The property consists of an approximately 2,770-square

foot building and is situated on 0.623 ± acres. The building was recently updated to the new

American Showman design.

The Tenant recently extended their lease and now have ten-years remaining on the initial

fifteen-year absolute-net lease. The current annual rent is $56,400. The lease is equipped

with one ten percent rent increase in year six and one renewal option.

Investment Highlights

❖ Absolute Net Lease | Zero Landlord Responsibilities

❖ New 10 Year Extension with 10% Increase in 2024

❖ Long-Term Historical Occupancy | Opened 2004

❖ Strong Franchise Operator with 32 Units

❖ The Corner Lot has a walk score of 83 | “Most errands can be accomplished on foot”

❖ Property is Located on a Busy Retail Corridor in a Dense Residential Area

❖ Strong Demographics with 190,500 Residents, 86,546 Households and 285,000

Employees within Five-Miles

❖ Over 29,000 VPD Passing Directly in front of the and near I-44 (93,320 VPD)

❖ Located Near Multiple National Tenants including: Whole Foods, Trader Joes,

Walmart, Starbucks, Dollar Tree, Lululemon, and more

❖ There are Several Schools in the Area with a Combined Enrollment Over 2,600

Patel Advisory Group | Marcus & Millichap

1 Mile 3 Miles 5 Miles

Population

2023 Estimate 9,793 75,249 188,299

2018 Estimate 9,888 76,531 190,563

2018 Daytime Population 8,368 88,284 285,020

Households

2018 Estimate 5,149 37,540 86,540

Average Household Size 1.92 2.02 2.11

Households By Income

Average Household Income $77,827 $78,992 $71,287

Median Household Income $50,625 $45,794 $44,125

Households Expenditure

Average Retail Expenditure $60,426 $57,468 $55,986

Food $5,895 $5,657 $5,555

Demographics Summary

Income Details

In 2018, the median household income for your selected geography is $45,794,compare this to the US average which is currently $58,754. The median householdincome for your area has changed by 27.59% since 2000. It is estimated that themedian household income in your area will be $54,891 five years from now, whichrepresents a change of 19.87% from the current year.

In 2018, there are 52,177 employees in your selected area, this is also known as thedaytime population. The 2000 Census revealed that 71.87% of employees areemployed in white-collar occupations in this geography, and 27.90% are employedin blue-collar occupations. In 2018, unemployment in this area is 4.57%. In 2000, theaverage time traveled to work was 18.00 minutes.

Employment Details

Investment Summary

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PROPERTY DESCRIPTION

Tenant Kentucky Fried Chicken

Property Address 4235 South Peoria Avenue

City, State, ZIP Tulsa, Oklahoma 74105

Year Built / Renovated 2004/2013

Building Size 2,770

Lot Size +/- 0.623 Acres

Type of Ownership Fee Simple

THE OFFERING

Purchase Price $980,000

CAP Rate 5.76%

Annual Rent $56,400

Price / SF $353.79

Rent / SF $20.36

LEASE SUMMARY

Property Type Net-Leased QSR

Tenant/Guarantor Schoenhofer Enterprises LLC

Original Lease Term Fifteen Years

Lease Commencement June 1, 2004

Lease Expiration June 30, 2029

Lease Term Remaining (10) Ten-Years

Lease Type Absolute-Net (NNN)

Options to Renew One (1), Five (5)-Year Renewal Options

Patel Advisory Group | Marcus & Millichap

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RENT SCHEDULE

Rent Increases 10% in Year 6

Current – 2024 $56,400

2024 – 2029 $62,040

Final Option (2029 – 2034) $68,244

Pricing Summary

EXCLUSIVE NET LEASE LISTING

P R E S E N T E D B Y

Darpan Patel

First Vice President of Investments

Associate Director - Net Leased Properties Group

Cincinnati Office

Tel: (513) 878-7723

Fax: (513) 878-7710

darpan.patel@marcusmillichap.com

License: OH SAL 2012000748

Frank Simcic

Associate

Associate – National Retail Group

Cincinnati Office

Tel: (513) 878-7745

Fax: (513) 878-7710

Frank.Simcic@marcusmillichap.com

License: OH SAL 2015005386

Broker of Record: Tim Speck