1857 S. Tippecanoe Ave, San Bernardino, CA

ABSOLUTE NNN INVESTMENTStrong Estimated Store Sales | Brand New Constuction

S. TIPPECANOE AVE. 37,100 CPD

201,000 CPD 10

New University Health Medical Center • $1.2 Billion Project• New Loma Linda University Health Medical Center• Children’s Hospital Tower

Loma Linda University • 4,400 annual Students and Faculty• Continually ranks as one of the most expensive medical schools• Eight separate specialized schools at one campus • Only Level One trauma facility in the Inland Region• 500,000 annual patients

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AERIAL OVERVIEW

Property Overview

Lease Abstract

Property Photos

Site Plan

Aerial Overview

Tenant Overview

San Bernardino

Demographics

Regional Map

Daytime Population

Household Income

Confidentiality Agreement

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TABLE OF CONTENTS

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PROPERTY OVERVIEW

We are pleased to offer to qualified investors an opportunityto purchase a brand new (fee simple) Raising Cane’s locatedin San Bernardino, CA on a 15 year absolute NNN lease. Strategically positioned on the heavily trafficked I-10 on/offramp; this is a rare opportunity to purchase a brand new 2017 construction, corporate guaranteed lease, with zero landlord responsibilities, strong rental increases every five years, at Raising Cane’s first Inland Empire location (flagship location).

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Investment Highlights

Location Highlights

• Flagship Location - Absolute NNN Trophy Investment • Rare Opportunity - Raising Cane’s First Inland Empire Location• Raising Cane’s Named No. 1 Fastest Growing Restaurant Chain - 2017• Raising Cane’s Restaurants LLC - Strong Corporate Guarantee• 26% Sales Growth in 2016 with Estimated Sales Per Unit Up Almost 4%

• Location to Loma Linda University - Over 4,400 Students and the $1.2 Billion Project - Loma Linda Medical Center and Children’s Hospital Opening in 2020• Strategically Located on the I-10 On/Off Ramp - Estimated 200,300 VPD• High Estimated Store Sales - Out Positions In-n-Out and El Pollo Loco Quicker Access and Traffic Flow• Excellent Visibility - Easy Ingress/Egress - 37,100 VPD S Tippecanoe Ave & Anderson St.• Directly Across from Costco and Sam’s Club with Surrounding Retailers Including In-N-Out Burger, Starbucks, BJ’s Restaurant & Brewhouse, 24 Hour Fitness, Best Buy and More• Major Commercial Hub for Surrounding Region - 900,000 SF of Retail and Office Within 3-Mile Radius• 150,187 Daytime Employees (5-Mile Radius) and Population Over 257,000

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PRICING

List Price $7,998,000

NOI $360,000

CAP Rate 4.50%

Taxes NNN

Insurance NNN

CAM NNN

Absolute NNN No LL Responsibilities

LEASE ABSTRACT

Tenant Trade Name Raising Cane’s

Lease Commencement Date 9/15/2016

Lease Start 2017

Lease Expiration 2032

Lease Term 15 Years

Term Remaining On Lease 15 Years

Base Rent $360,000

Rental Adjustments Year 6: $380,000Year 11: $402,000

Option Periods

3 - 5 Year Option Periods Plus 1 - 4 Year Option 10% Increases Every 5 Years Option 1: $442,000.00Option 2: $486,420.00Option 3: $535,062.00Option 4: $588,568.20

Lease Type Absolute NNN Lease

Roof & Structure Tenant Responsible

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PROPERTY PHOTOS

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SITE PLAN

Address1857 South Tippecanoe Avenue

San Bernardino, CA 92408

Building Size4,086 SF

Land Area1.24 Acres (54,031 SF)

Year Built2017 Construction

Parcels0281-151-19, 0281-151-21

0281-151-50, 0281-151-75,0281-151-49

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S. TIPPECANOE AVE. 37,100 CPD

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P. 8AERIAL OVERVIEW

The fastest-growing restaurant chain in the US is all about one thing: chicken fingers.

Raising Cane’s increased sales by a whopping 25.9% in 2016, reaching the No. 1 spot on Nation’s Restaurant News annual list of the fastest-growing chains by sales in the US. The 310-location chicken-finger restaurant is taking over the nation, opening 59 new restaurants in the past year alone.

Fried chicken is hot right now, but Raising Cane’s offers something a little bit different than chains like Chick-fil-A or KFC, thanks to its minimalist menu and focus on chicken fingers.

To see if Raising Cane’s lives up to the hype, Business Insider visited a location in Charlottesville, Virginia. What we discovered was a chain with the potential to go head-to-head with the champions of the chicken industry.

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www.businessinsider.com/raising-canes-review-2017-6

Raising Cane’s Restaurants is a fast-food restaurant chain specializing in chicken fingers, that is based in Baton Rouge with a support office in Plano, Texas. The privately held company has more than 340 locations acroos 21 states.

TENANT OVERVIEW

2015 Excellent Fast-Food ChainsRaising Cane’s ranked fourth (seventh consecutive year in the top 10) on market-research firm Sandelman & Associates’ 2015 “Top Ten Quick-Service Restaurant Chains.”

Restauranteur of the YearCEO Todd Graves was honored with the most prestigious Louisiana restaurant industry award for his continual community service participation at both the local and state levels.

Company of the YearRaising Cane’s received the “2016 Company of the Year” from the Greater Baton Rouge Business Report, citing the restaurant’s rapid growth, aggressive expansion plans moving forward, and positive impact on the communities it serves.

Strategic GrowthIn both 2015 and 2016, Nation’s Restaurant News ranked Raising Cane’s Chicken Fingers fourth in its Top 100 Fastest Growing Chains, noting that the restaurant also ranked first in ‘menu creativity’ that seems to be “resonating with consumers everywhere.”

CITY OF SAN BERNARDINO

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San Bernardino is located approximately 60 miles east of Los Angeles,

120 miles northeast of metropolitan San Diego, and 55 miles northwest

of Palm Springs. Located in the Riverside-San Bernardino metropolitan

area San Bernardino is one of the Inland Empire’s anchor cities, San

Bernardino spans 81 square with a popualtion of over 213,000 as of

2016. San Bernardino is the 17th-largest city in California and the 100th-

largest city in the United States.

New to the City is the multi-faceted 150,000 square foot Loma Linda University Health – San Bernardino complex. The campus is home to San Manuel Gateway College, a multi-specialty medical clinic operated by Social Action Community Health System (SACHS) and a vegetarian restaurant. The facility also features a downtown pharmacy. As a first of its kind, San Manuel Gateway College integrates training programs in health careers with clinical experience, allowing students to benefit from hands-on training and mentoring by Loma Linda University Health faculty and students.

Major Employer (1,000-4,999) Industry

BNSF Railway Company Railroads

California State University, San Bernardino Schools-Universities & Colleges

Community Hospital – San Bernardino Hospitals

San Bernardino County Superintendent of Schools Schools

San Bernardino County Sheriff County Government - General Offices

California Department of Transportation Government Offices – State

1. Source: State of California Employment Development Department Annual and June 2016 report.

$1.2 BILLION PROJECT

Population 1-MILE 3-MILE 5-MILE

Estimated Population (2017) 8,283 66,458 257,892

Projected Population (2022) 8,571 68,714 267,075

Households 1-MILE 3-MILE 5-MILE

Estimated Households (2017) 2,512 21,068 76,942

Projected Households (2022) 2,602 21,778 79,685

Income 1-MILE 3-MILE 5-MILE

Avg. Household Income (2017) $56,237 $67,554 $56,736

Median Household Income (2017) $38,027 $45,775 $38,830

Business Facts 1-MILE 3-MILE 5-MILE

Total # of Businesses (2017) 604 5,663 12,112

Total # of Employees (2017) 9,898 81,494 150,136$$

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60 Miles East of Los Angeles120 Miles Northeast of San Diego55 Miles Northwest of Palm Springs

REGIONAL MAP

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The housing market in San Bernardino County continued to improve in early 2017, with the median home price up by more than 8 percent in the second quarter of this year, at nearly $290,000. Meanwhile, permits for single-family homes in the first half of this year were up by one-third over last year (32.9 percent from first half of ‘16 to first half of ‘17)

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Projected Economic Growth (2017-2022)

Expected retail sales growth: 12.2%

Expected job growth: 5.9%

Fastest growing jobs sector: Transportation & Utilities

Expected personal income growth: 11.2%

Expected population growth: 4.5%

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Colliers International | 3 Park Plaza, Suite 1200 | Irvine, CA 92614 | Snyder/Carlton Team

Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. This publication is the copyrighted property of Colliers International and /or its licensor(s) 2015. All rights reserved

This Offering Memorandum contains select information pertaining to the business and affairs of Raising Cane’s - San Bernardino, CA. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum from Colliers, you agree:

1. The Offering Memorandum and its contents are confidential;

2. You will hold it and treat it in the strictest of confidence; and

3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of Raising Cane’s - San Bernardino, CA or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

Investment Contacts:

Eric CarltonExecutive Vice PresidentLicense No. 01809955949.724.5561eric.carlton@colliers.com

Jereme SnyderExecutive Vice PresidentLicense No. 01360233949.724.5552jereme.snyder@colliers.com

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