™TACO BELL & KFC2 8 0 2 E . L E D B E T T E R D R . | DA L L AS , T X

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

Representative Photo

Year Built

1984

Square Footage

± 3,113

List Price

$1,936,956

Cap Rate

5.25%

Property Name

Taco Bell & KFC

Term Remaining

14+ Years

Avery BarryAssociate

avery.barry@matthews.comDIR 949.873.0295MOB 949.769.1821LIC # 02036379 (CA)

Wesley Connol ly, MBASenior Associate

wesley.connol ly@matthews.comDIR 949.432.4512MOB 707.477.7185LIC # 01962332 (CA)

KYLE MATTHEWS

BROKER OF RECORDLIC # 9005919 (TX)

BROKER OF RECORD

LISTED BY

Representative Photo

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BROKER OF RECORD

E X E C U T I V EO V E R V I E W

TENANT HIGHLIGHTS

LOCATION HIGHLIGHTS:

PROPERTY DETAILS:

• Dallas is a Top 3 Fastest Growing MSA according to Forbes

• Over 190,000+ Population in a 5-Mile Radius of Subject property

• Texas is an income tax-free state

• 14+ Years Remaining on Absolute NNN Lease - Tenant takes care of all responsibilities including property tax, insurance, and property and building maintenance

• Lease Guaranteed by the Largest KFC Franchisee in the Country (KBP Foods with over 435 Units)

• Growing Cash Flow - There are 1.50% rental increases annually providing great compounding cash flow

• Parent Company of Taco Bell and KFC (Yum Brands!) ranks 4th in the largest fast food restaurant chains in the world

• KBP Foods is the largest KFC operator in the country operating approximately 10% of all KFC restaurants in the United States

• There are over 10,000 KFC and Taco Bell properties in the United States alone

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FINANCIAL HIGHLIGHTS

LIST PRICE

$1,936,956

CAP RATE

5.25%

TERM REMAINING

14+ YEARS

TENANT SUMMARY

Tenant Trade Name Taco Bell & KFC

Type of Ownership Fee Simple

Lease Type NNN

Roof & Structure Tenant Responsibility

Original Term 20 Years

Rent Commencement Date 7/17/2012

Lease Expiration Date 7/17/2032

Increases 1.50% Annual Increases

Extensions Four, 5-Year Extensions

ANNUALIZED OPERATING DATA

Monthly Rent Annual Rent Cap Rate

7/17/2018 - 7/16/2019 $8,474 $101,690 5.25%

7/17/2019 - 7/26/2020 $8,601 $103,215 5.32%

7/17/2020 - 7/16/2021 $8,730 $104,763 5.40%

7/17/2021 - 7/16/2022 $8,861 $106,335 5.49%

7/17/2022 - 7/16/2023 $8,994 $107,930 5.57%

7/17/2023 - 7/16/2024 $9,129 $109,549 5.65%

7/17/2024 - 7/16/2025 $9,266 $111,192 5.74%

7/17/2025 - 7/16/2026 $9,405 $112,860 5.82%

7/17/2026 - 7/16/2027 $9,546 $114,553 5.91%

7/17/2027 - 7/16/2028 $9,689 $116,271 6.00%

EXECUTIVE SUMMARY

Property Name Taco Bell & KFC

Property Street 2802 E. Ledbetter Dr.

City, State, Zip Dallas, TX 75216

Gross Leasable Area ± 3,113 SF

Year Built 1984

Lot Size ± 0.86 Acres

F I N A N C I A LO V E R V I E W

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Operating as a subsidiary of Yum! Brands, Inc., Taco Bell & KFC Corp. owns, operates, and franchises a chain of Mexican-inspired quick service restaurants in the United States. The company’s restaurants offer made to order and customizable tacos, burritos, quesadillas, gorditas, nachos, chalupas, beverages, desserts and sides, and other specialty items. As the leading Mexican-inspired quick service restaurant brand, Taco Bell & KFC and its more than 350 franchise organizations proudly serve over 42 million customers each week through nearly 7,000 restaurants across the nation, as well as through its mobile, desktop and delivery ordering services. Overseas, Taco Bell & KFC has over 250 restaurants, with plans to add 2,000 more restaurants internationally within the next decade. In 2016, Taco Bell & KFC was named as one of Fast Company’s Top 10 Most Innovative Companies in the World. Taco Bell & KFC plans to have 8,000 restaurants by the year 2023, which is anticipated to add an estimated 100,000 jobs nationwide.

KBP FOODSKBP Foods has been named one of the top 100 private companies & corporate report 100 fastest-growing companies. As a franchisee, they operate over 580 restaurants in 23 states. Their corporate office and restaurant support center is located in Overland Park, KS. KBP Foods recognizes the value of good people and have built a foundation of loyalty, value, decisiveness, and teamwork.

TACO BELL

P A R E N T C O M P A N Y T R A D E N A M E Y U M ! B R A N D S , I N C . ( N Y S E : Y U M )

H E A D Q U A R T E R E DI R V I N E , C A L I F O R N I A

W E B S I T EW W W .T A C O B E L L . C O M

# O F L O C A T I O N S± 6 , 5 0 0

# O F E M P L O Y E E S± 1 7 5 , 0 0 0

C R E D I T R A T I N G ( S & P )B B B

Y E A R F O U N D E D1 9 5 4

T E N A N T O V E R V I E W

6

KFC Corporation, based in Louisville, Kentucky, is one of the few brands in America that can boast a rich, decades-long history of success and innovation. It all started with one cook who created a soon-to-be world-famous recipe more than 70 years ago, a list of secret herbs and spices scratched out on the back of the door to his kitchen. That cook was Colonel Harland Sanders, of course, and now KFC is the world’s most popular chicken restaurant chain, specializing in that same Original Recipe® along with Extra Crispy™ chicken, home-style sides and buttermilk biscuits. There are more than 20,000 KFC outlets in 125 countries and territories around the world.

YUM! BRANDSYUM! Brands is the largest fast-food operator in the world in terms of number of locations, with more than 41,000 outlets in about 125 countries. The company’s flagship chains include #1 chicken fryer KFC (with more than 19,400 units), top pizza joint Pizza Hut (more than 15,600), and quick-service Mexican leader Taco Bell (more than 6,200). YUM! sold the Long John Silver’s seafood chain, along with several hundred A&W root beer and burger stands to two separate buyers in late 2011. In 2015 YUM! Brands announced it would spin off its Chinese operations into a separately traded public company.

KFC

P A R E N T C O M P A N Y T R A D E N A M E Y U M ! B R A N D S , I N C . ( N Y S E : Y U M )

H E A D Q U A R T E R E DL O U I S V I L L E , K Y

W E B S I T EW W W . K F C . C O M

# O F L O C A T I O N S± 4 2 , 0 0 0

# O F E M P L O Y E E S± 5 0 5 , 0 0 0

C R E D I T R A T I N G ( S & P )B B B

Y E A R F O U N D E D1 9 9 7

7

Oceanside Blvd ± 31,792

Col

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Blv

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40,11

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PARCEL MAP

TENANT SUMMARY

Property Address2802 E. Ledbetter Dr.

Dallas, TX 75216

SITE DESCRIPTIONNumber of Stories One

Year Built 1984

Lot Size ± 0.86 Acres (37,527 SF)

GLA ± 3,113 SF

Type of Ownership Fee Simple

Landscaping Professional

Topography Generally Level

THE OFFERING

P R O P E R T YO V E R V I E W

E. Ledbetter Dr ± 28,000 ADT

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S U R R O U N D I N G A R E A

VA North TexasHealth Care System

Barack Obama Male

Leadership Academy

Harry Stone

Montessori

Sarah Zumwalt

Middle School

Elisha M. Pease

Elementary

School

A. Maceo Smith

New Tech

High School

E. Ledbetter Dr ± 28,000 ADT

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A. Maceo Smith

New Tech

High School

DALLAS, TX

As the largest metropolitan area in the South and the fourth largest in the United States, the Dallas-Fort Worth Metroplex is the economic and cultural hub of the North Central Texas region. Growing research universities and innovative companies investing in the region, recognizing it as a hub of creativity, ingenuity and high-tech innovation. This area has become an essential part of growth strategies for companies and is acknowledged as one of the top 10 metropolitan areas in the United States for high-tech workers with over 230,000 employed workers across a variety of industries. The cities of Dallas and Fort Worth comprise the two largest urban centers of the continuously expanding Metroplex, respectively. On the eastern side of the metro area, Dallas is the larger of the two cities with an economy based on business management and operations. Conversely, the Texas farming and ranching industry is based on the westside of the metroplex in Fort Worth.

POPULATION 1 Mile 3 Mile 5 Mile

2023 Projection 9,901 76,047 212,644

2018 Estimate 9,360 71,865 201,598

2010 Census 8,683 71,865 187,303

Growth 2018-2023 5.78% 5.82% 5.48%

HOUSEHOLDS 1 Mile 3 Mile 5 Mile

2023 Projection 3,620 26,281 68,071

2018 Estimate 3,416 24,844 64,631

2010 Census 3,155 22,964 60,553

Growth 2018-2023 5.97% 5.78% 5.32%

INCOME 1 Mile 3 Mile 5 Mile

2018 Est. Average Household Income

$35,209 $40,616 $45,746

DEMOGRAPHICS

A R E A O V E R V I E W

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Globally connected and centrally located, Dallas enjoys convenient access to the rest of the country that has allowed the city to emerge as a center for corporate America. A business-friendly environment, the availability of educated workers, low taxes and a low cost of doing business add to the city’s allure for companies looking to expand or relocate. Today, Dallas and its suburbs have one of the highest concentrations of corporate headquarters in the United States, 21 of which are Fortune 500 companies.

Dallas is a city where big ideas meet big opportunity thanks to the collaborative and engaged entrepreneurial ecosystem. Steady and significant growth in the city’s central core speaks to its highly-diversified economy and thriving job market that supports several major industry clusters. The local economy continues to be heavily influenced by petroleum along with other historically successful industry niches including food manufacturing, media, telecommunications, transportation, IT services, logistics, instruments, and real estate development.

BUSINESS OPPORTUNITIES DALLAS MSA DEMOGRAPHICS

1.3M2018. Est. Population

495,3622018. Est. Households

6.70%Projected Population Growth 2018 - 2023

6.37%Projected Population Growth 2018 - 2023

$45,9182018 Est. Average

Household Income

11

Also known as SMU, Southern Methodist University is a private research university located near the heart of Dallas. Its 234-acre University Park/Highland Park campus enjoys a unique urban setting, providing students the opportunities for leadership development hands-on research, community service and experiential learning. Hosting a total enrollment of 11,000 undergraduate and graduate students, SMU offers a strong foundation in the humanities and sciences in its seven schools; There are 106 bachelor’s degree programs, 114 master’s degree programs and 31 doctoral-research degree programs for students to choose from. SMU continues to gain recognition for its increasing impact on its students, faculty and community, earning it a ranking of #56 on U.S. News and World Report’s Best Colleges National Universities list.

Every fall brings about the excitement of football season on campus as students and alumni come together to cheer on the SMU Mustangs, the university’s football program which competes in the NCAA FBS in the American Athletic Conference.

SOUTH METHODIST UNIVERSITY

TOP EMPLOYERS

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As the primary international airport serving the Dallas-Fort Worth area, Dallas/Fort Worth International Airport (DFW) is the third busiest airport in the world and the busiest airport in Texas seeing over 65.5 million passengers annually. The airport is the largest hub for American Airlines, which is headquartered nearby. DFW is roughly located halfway between Dallas and Fort Worth, providing passengers service to 217 destinations.

Six miles northwest of downtown Dallas, Dallas Love Field is a city-owned commercial airport that is home to the corporate headquarters and a focus city for Southwest Airlines, the largest domestic airline in the United States. Dallas Love Field is also a focus city for Virgin America. The airport’s main terminal underwent a $519 million modernization plan that replaced its existing terminal buildings with a single 20-gate concourse.

Dallas Area Rapid Transit (DART) is Dallas’ transit agency that operates buses, light rail and a commuter rail. Serving Dallas and twelve of its suburbs, DART sees an average daily ridership of 200,000 riders. DART’s bus system provides 27 local routes that serve downtown Dallas, 15 suburban routes that link suburban neighborhoods to transit centers and 20 crosstown routes that run through Dallas and its suburbs.

DALLAS/FORT WORTH INTERNATIONAL AIRPORT

DALLAS LOVE FIELD

DART

Established by an interlocal agreement between DART and the Fort Worth Transportation Authority, the Trinity Railway Express is a commuter rail line in the Dallas-Fort Worth metroplex. It is the fifteenth most-ridden commuter rail system in the country with an average weekday ridership of over 8,000 passengers per day. The TRE fleet is comprised of nine locomotives that offer rail service between downtown Dallas and DFW airport.

TRINITY RAILWAY EXPRESS

GETTING AROUND

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Taco Bell & KFC located at 2802 E. Ledbetter Dr., Dallas, TX 76502 (“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

EXCLUSIVELY LISTED BY™

TACO BELL & KFC2 8 0 2 E . L E D B E T T E R D R . | DA L L AS , T X

Avery BarryAssociate

avery.barry@matthews.comDIR 949.873.0295MOB 949.769.1821LIC # 02036379 (CA)

Wesley Connol ly, MBASenior Associate

wesley.connol ly@matthews.comDIR 949.432.4512MOB 707.477.7185LIC # 01962332 (CA)

KYLE MATTHEWS

BROKER OF RECORDLIC # 9005919 (TX)

BROKER OF RECORD

11-2-2015

Information About Brokerage ServicesTexas law requires all real estate license holders to give the following informaƟon about

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

TYPES OF REAL ESTATE LICENSE HOLDERS: .• A BROKER is responsible for all brokerage acƟviƟes, including acts performed by sales agents sponsored by the broker. • A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.

A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): • Put the interests of the client above all others, including the broker’s own interests; • Inform the client of any material informaƟon about the property or transacƟon received by the broker; • Answer the client’s quesƟons and present any offer to or counter-offer from the client; and • Treat all parƟes to a real estate transacƟon honestly and fairly.

A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:

AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a wriƩen lisƟng to sell or property management agreement. An owner's agent must perform the broker’s minimum duƟes above and must inform the owner of any material informaƟon about the property or transacƟon known by the agent, including informaƟon disclosed to the agent or subagent by the buyer or buyer’s agent.

AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a wriƩen representaƟon agreement. A buyer's agent must perform the broker’s minimum duƟes above and must inform the buyer of any material informaƟon about the property or transacƟon known by the agent, including informaƟon disclosed to the agent by the seller or seller’s agent.

AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parƟes the broker must first obtain the wriƩen agreement of each party to the transacƟon. The wriƩen agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligaƟons as an intermediary. A broker who acts as an intermediary:

• Must treat all parƟes to the transacƟon imparƟally and fairly; • May, with the parƟes' wriƩen consent, appoint a different license holder associated with the broker to each party (owner and

buyer) to communicate with, provide opinions and advice to, and carry out the instrucƟons of each party to the transacƟon. • Must not, unless specifically authorized in wriƟng to do so by the party, disclose:

ᴑ that the owner will accept a price less than the wriƩen asking price; ᴑ that the buyer/tenant will pay a price greater than the price submiƩed in a wriƩen offer; and ᴑ any confidenƟal informaƟon or any other informaƟon that a party specifically instructs the broker in wriƟng not to

disclose, unless required to do so by law.

AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transacƟon without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.

TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: • The broker’s duƟes and responsibiliƟes to you, and your obligaƟons under the representaƟon agreement. • Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.

LICENSE HOLDER CONTACT INFORMATION: This noƟce is being provided for informaƟon purposes. It does not create an obligaƟon for you to use the broker’s services. Please acknowledge receipt of this noƟce below and retain a copy for your records.

Licensed Broker /Broker Firm Name or Primary Assumed Business Name

License No. Email Phone

Designated Broker of Firm License No. Email Phone

Licensed Supervisor of Sales Agent/Associate

License No. Email Phone

Sales Agent/Associate’s Name License No. Email Phone

Regulated by the Texas Real Estate Commission

Buyer/Tenant/Seller/Landlord Initials

InformaƟon available at www.trec.texas.gov IABS 1-0

Date

Kyle Matthews/Matthews Retail Group Inc. 678067 kyle.matthews@matthews.com (310) 919-5757

Kyle Matthews 678067 kyle.matthews@matthews.com (310) 919-5757