B u r g e r K i n g , B a t o n R o u g e , L A |

Burger King5 3 5 3 P l a n k R o a d | B a t o n R o u g e , L A

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

™

™

B u r g e r K i n g , B a t o n R o u g e , L A |

e x c l u s i v e ly l i s t e d b y

c o n t e n t s0 4

0 5

1 1

0 7

E X E C U T I V E S U M M A R Y

f i n a n c i a l O V E R V I E W

a r e a O V E R V I E W

t e n a n t o v e r v i e w

b e a u B o xBROKER OF RECORDLIC # 0000072286

M i t c h e l l G l a s s o n

Associate

Mitchel l .Glasson@matthews.comDIR (949) 432-4502MOB (707) 364-5650LIC # 02016029

A r o n C l i n e

SVP & Sr. Director

Aron.Cl ine@matthews.comDIR (949) 432-4509MOB (818) 632-0233LIC # 01904371

4 | M a t t h e w s

• Operations were Recently Acquired by GPS Hospitality, the 3rd Largest Burger King Operator in the US

• 30 Year Operating Location and Affordable Rent - Previous Tenant Locked In Two Long Term Extensions, GPS is Currently Paying only 55% of the National Average Burger King Rent; Opportunity for Landlord to Increase Return

• GPS has Experienced Tremendous Growth, Strategically Acquiring Over 200 Locations within the Past Year Placing Their Operating Total at 431 Restaurants

• The Operator was Named the “Fastest Growing Private Company” and is on Track to Hit CEO Tom Garret’s $1 Billion Sales Goal

• Long-Term Investment Outlook - Cheap Rent Coupled with the Tenant’s Immense Success is a Strong Indicator of Future Appreciation

• Over 140,000 People within a 5 Mile Radius

• Strategically Located on Plank Road the main thoroughfare to Baton Rouge Metropolitan Airport

• Direct National Tenants include Walgreen’s, McDonald’s, Krispy Kreme, Raising Cane’s, Exxon, Advanced Auto Parts, AutoZone, IHOP, Chase, and more

• The Investment’s Fast Food Concept Benefits from Close Proximity of Southern University and A&M College, Cristo Rey Baton Rouge High School, Dalton Elementary, East Baton Rouge Parish School, and more

i n v e s t m e n t h i g h l i g h t s

e x e c u t i v e s u m m a r y

B u r g e r K i n g , B a t o n R o u g e , L A |

f i n a n c i a lo v e r v i e w

B u r g e r K i n g5353 Plank RoadBaton Rouge, LA 70805

List Price .....................................................................................................................$806,667

CAP Rate - Current .......................................................................................................... 7.50%

Gross Leasable Area .............................................................................................. ± 3,271 SF

Lot Size .................................................................................................................± 0.68 Acres

Annualized Operating DataMonthly Rent Annual Rent Cap Rate

Current $5,041.67 $60,500 7.50%

Option 2 $5,545.83 $66,550 8.25%

Tenant Summary

Tenant Trade Name Burger King

Type of Ownership Fee Simple

Lease Guarantor GPS Hospitality

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 10 Years

Lease Commencement Date 1/26/2006

Rent Commencement Date 12/8/2006

Lease Expiration Date 12/7/2016

Term Remaining on Lease 4+ Years

Increases 10% every five (5) Years

Options Two (2), Five (5) Years

B u r g e r K i n g , B a t o n R o u g e , L A |

t e n a n to v e r v i e w

t e n a n t o v e r v i e w

Property Name Burger King

Parent Company Trade Name Restaurant Brands International, Inc. (NYSE: QSR)

Ownership Public

Credit Rating (Standard & Poor’s) B+

Revenue $1.15 B

Net Income $233.70 M

No. of Locations ± 15,000

No. of Employees ± 34,248

Headquartered Miami, FL

Website www.bk.com

Year Founded 1953

TENANT OVERVIEW

Burger King Worldwide operates the world’s #2 hamburger chain by sales with almost 15,000 restaurants in the US and more than 100 other countries. Every day, more than 11 million guests visit Burger King Restaurants around the world and they do so because Burger King is known for serving high-quality, great-tasting and affordable food. In addition to its popular Whopper sandwich, the chain offers a selection of burgers, chicken sandwiches, salads, and breakfast items, along with beverages, desserts, and sides. Burger King’s menu has expanded from a basic offerings of burgers, French fries, sodas, and milkshakes to a larger and more diverse set of products. Many of the eateries are stand-alone locations offering dine-in seating and drive-through services; the chain also includes units in high-traffic locations such as airports and shopping malls. Burger King Worldwide is owned and operated by Restaurant Brands International.

GEOGRAPHIC OUTREACH

Burger King has restaurant locations throughout the US and more than 100 other countries. The US and Canada are responsible for about 65% of revenues. Like most other giants of the fast-food industry, Burger King has expanded its nationwide and international presence primarily through franchising. But the company has reduced its domestic expansion efforts recently. Burger King has used joint ventures to expand in countries like China, Mexico, Russia, and Singapore.

GPS HOSPITALITY

GPS Hospitality is a rapidly growing franchisee group. GPS recently expanded their national footprint into five new states with the acquisition of 194 Burger King restaurants. This recent acquisition doubles the company’s size and puts it firmly among the top three largest Burger King franchisees in the US with 424 locations nationwide. GPS Hospitality is on track to meet its goal of becoming a $1 billion company in sales in just 10 years.

8 | M a t t h e w s

B u r g e r K i n g , B a t o n R o u g e , L A | 9

Oceanside Blvd ± 31,792

Col

lege

Blv

d ±

40,11

6

t h e o f f e r i n g

Property Name Burger King

Property Address 5353 Plank Road

Baton Rouge, LA 70805

Assessor’s Parcel Number 162-241-18-00

Zoning PD-1

Site DescriptionNumber of Stories 1

Gross Leasable Area (GLA) ± 3,271 SF

Lot Size ± 0.68 Acres

Type of Ownership NNN

Parking 55 Surface Spaces

Parking Ratio 16 : 1,000 SF

Landscaping Professional

Topography Generally Level

p a r c e l m a p

ConstructionFoundation Concrete Slab

Framing Wood

Exterior Brick

Parking Surface Asphalt

Roof Flat

t e n a n t m a p

1 0 | M a t t h e w s

B u r g e r K i n g , B a t o n R o u g e , L A | 1 1

Situated on the Mississippi River, Baton Rouge represents the best of Louisiana’s vibrant culture. The state capital, Baton Rouge is a thriving city that is home to both LSU and Southern University and numerous businesses and industrial facilities. Known for its unique food and its lively music, Red Stick has something for everyone - including a local government that cares. Baton Rouge is Louisiana’s Capital City and the hub of all things Louisiana. Baton Rouge is centrally located just an hour from both New Orleans and Lafayette. Baton Rouge is the perfect city to explore the all of the culture Louisiana has to offer. Baton Rouge houses over 300 years of history that can be tasted in delectable food, seen throughout the distinct architecture and learned through unique culture.

B at o n R o u g e , L A

B at o n R o u g e d e m o g r a p h i c s

POPULATION 1 Mile 3 Mile 5 Mile

2022 Projection 10,216 68,077 136,451

2017 Estimate 10,350 68,623 136,985

2010 Census 10,892 71,417 141,039

2000 Census 11,238 73,901 145,873

HOUSEHOLDS 1 Mile 3 Mile 5 Mile

2022 Projection 3,642 23,854 52,236

2017 Estimate 3,672 23,917 52,088

INCOME 1 Mile 3 Mile 5 Mile

2017 Est. Average Household Income

$39,616 $43,046 $51,979

a r e a o v e r v i e w

e c o n o m y

Baton rouge enjoys a strong economy that has helped the city be ranked as one of the “Top 10 Places for Young Adults”. The Baton Rouge’s metro area’s economy is growing at a faster rate than predicted. In the past two years, Baton Rouge has seen above 3% in job growth. The Baton Rouge area’s job growth has outperformed peer cities like Austin, Birmingham, and Columbia. The regional added around 9,000 jobs in the 2016 and forecasts to add another 6,000 jobs in 2017.

Employers Employees

State of Louisiana 22,120

Turner Industries 9,671

East Baton Rouge Parish Public Schools 6,250

Louisiana State University 5,600

City of Baton Rouge 4,612

T o p E m p l o y e r s - B at o n r o u g e

H i g h e r e d u c at i o n

Louisiana State University and Agricultural and Mechanical College, generally known as Louisiana State University is a public, coeducational university that is the flagship campus of the Louisiana State University System. Enrollment stands at over 31,000 students, with 1,300 full-time faculty members.

Southern University and A&M College is parts of the only historically black land grant university system in the United States. Southern became a land-grant school in 1890, and an Agricultural and Mechanical department was established. The university is the largest HBCU in Louisiana. Virginia college opened in October 2010 and offers students training in areas like Cosmetology, Business, Health and Medical Billing.

1 2 | M a t t h e w s

b at o n r o u g e at t r a c t i o n s

The Old State Capitol offers a look into Louisiana’s rich culture. The National Historic Landmark stands high on a bluff overlooking the Mississippi River. It houses the Old State Capital Museum of Political History that contains several state of the art exhibits. The “Castle on the River” is the recipient of distinguished awards for architecture and exhibit design. Atop the cast iron staircase offers a view of the stained glass cathedral dome in the unique blend of Gothic and Victorian architecture.

The Baton Rouge Zoo is the perfect place for family-friendly fun all year long. The zoo is home to animals from around the world including tigers, black rhinos, flamingos, alligators and giraffes. The Baton Rouge Zoo also takes strides in the conversation and protection of animals by participating in 30 international Species Survival Plans for critically endangered species. The zoo also hosts a number of events throughout the year including the Zoo Lights and Brew at the Zoo, among others.

LSU sports and particularly the football program have a huge economic impact in Baton Rouge. An LSU football game is a huge attraction. Tiger Stadium has become the fifth largest stadium in the nation and packs nearly 100,000 fans. LSU home football games are events talked about year round and happenings in Tiger Stadium are passed down from generation to generation. Poll after poll has proclaimed Tiger Stadium as one of the greatest sites anywhere for a football game - college or professional.

old louisiana state capitol

baton rouge zoo

LSU Tiger Stadium

r e g i o n a l m a p

SUBJECT PROPERTY

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Burger King located at 5353 Plank Road, Baton Rouge, LA 70805 (“Property”) . I t has been prepared by Matthews Retai l Advisors. 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 Retai l Advisors. 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 Retai l Advisors 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 Retai l Advisors 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

e x c l u s i v e ly l i s t e d b y

Burger King5 3 5 3 P l a n k R o a d | B a t o n R o u g e , L A

b e a u B o xBROKER OF RECORDLIC # 0000072286

M i t c h e l l G l a s s o n

Associate

Mitchel l .Glasson@matthews.comDIR (949) 432-4502MOB (707) 364-5650LIC # 02016029

A r o n C l i n e

SVP & Sr. Director

Aron.Cl ine@matthews.comDIR (949) 432-4509MOB (818) 632-0233LIC # 01904371

™