C

Colorado Springs, CO

Confidential Offering

Memorandum

10 Years of Remaining Term | Absolute NNN | Annual Increases

Marco’s Pizza

2

Executive Summary

Proprietary and confidential

The Offering

Jones Lang LaSalle (“JLL”) is pleased to offer for sale the fee simple interest in a pad site (the “Property” or “Asset”) occupied by Magliore Gusto, LLC d/b/a/ Marco’s Pizza(the “Tenant” or “Company”). The Asset features excellent thoroughfare visibility, over ten years of remaining contractual term, annual rent growth and minimal landlord

obligations. Located on one of Colorado Springs’ main intersections, Austin Bluffs Parkway and Academy Boulevard, the Property is well-positioned with over 33,000

vehicles passing by daily. The highly accessible site is further supported by nearby residential density and traffic sources, including regional high schools and recreational

facilities. This offering represents the opportunity to acquire a well-located retail Property in an affluent area of Colorado Springs with favorable in-place lease economics andminimal landlord responsibilities.

Outparcel to a Major Retail Center

Outstanding Long-Term Demographic Outlook

Triple-Net Lease Structure with Rental Increases

Dense Retail Submarket with Development Activity

The Asset’s current lease structure features a triple-net interest, over ten years of

remaining term, roughly two percent rental increases annually, and minimal landlord

obligations. The highly passive lease structure offers investors a long-term, stabilized

income stream along with contractual annual rental escalations.

Within a five-mile radius of the Asset, the population is nearly 300,000 people.

Moreover, the annual population growth rate of 1.02 percent within the same area

provides outstanding market stability, outpacing the national average by over 15 basis

points.

The Property is located within one of Colorado Springs’ most populated retail corridors,

hosting 25 national retailers including King Soopers (Kroger), Walmart, Walgreens, 24-

Hour Fitness, Ace Hardware, McDonald’s, Wendy’s, Starbucks, and Chase Bank. The

corridor has also featured national tenant development activity, with constructions and

deliveries such as the adjacent Verizon pad (currently listed on-market by JLL),

Starbucks, and a Dutch Bros. Coffee location all occurring in 2017.

The Asset is positioned as a freestanding site within the Market Center, anchored by

Planet Fitness, Dollar Tree, and Discovery Church (1,800 attendees per Sunday service).

The center also hosts national retailers including Starbucks, Marco’s Pizza, and Verizon.

The presence of these retailers and others within the power center generates considerable

consumer traffic, resulting in over 33,000 vehicles passing daily.

3

Executive Summary

Proprietary and confidential

Dense and Affluent Population Property & Lease Overview

Address: 4492 Austin Bluffs Parkway

Colorado Springs, CO 80918

Purchase Price / PSF: $700,000 / $359

Cap Rate: 5.57%

NOI / PSF: $39,000 / $20

Tenant: Migliore Gusto, LLC.

Guarantor: Personal (Expires at 60th Month of Lease)

Lease Type: NNN

Landlord Responsibilities: Maintenance via REA*

Property Type: Freestanding Retail Pad within Center with Drive-Thru

Parking: 40 Spaces

Site Size (Acres): 0.635 Acres

Year Built / Renovated: 1987 / 2012

Building Size (SF): 1,950 SF

Lease Commencement: 10/1/2012

Lease Expiration: 9/30/2027

Remaining Lease Term**: 10.0 Years

Rental Increases: $0.50 PSF Annual Escalations

Renewal Options: None

Financial Reporting: Tenant to File & Provide all Sales & Use Tax Returns

* Defined in Section 6 of Lease

**As of 10/1/2017

Proximity to Multiple Higher Education Institutions

Economic Stimulation from Public Sector Investment

Within a five-mile radius of the Asset, households boast average incomes of over

$81,000, creating a large supply of disposable income.

The Property is located proximate to The United States Air Force Academy,

Colorado College, and the University of Colorado – Colorado Springs, which are

home to a combined 17,000 students. The universities’ student populations and

large faculties create a large and stable consumer base in the area, providing

ongoing economic stimulation to the city of Colorado Springs.

Colorado Springs and its neighboring townships have long been home to integral

military installations including Fort Carson, The United States Air Force

Academy, Schriever Air Force Base, and Cheyenne Mountain. In total, these

operations employ approximately 60,000 people and contribute nearly $6 billion

to the economy.

4

Colorado Springs Retail Trade Area

Proprietary and confidential

Over 25 national retailers in the immediate area including Walmart, Ace Hardware, Walgreens, Dollar Tree and others.

Over 33,000 vehicles passing daily by the subject Property.

Adjacent to the Asset is the Marketplace at Austin Bluffs, a retail power center hosting national tenants including Starbucks, King Soopers, Jack in the Box, and others.

The highly accessible site is further supported by nearby schools and amenities, including Dougherty High School, Sand Creek High School and multiple golf and

recreational facilities.

5

Market Center Retail Map

Proprietary and confidential

Tenant Overview

Proprietary and confidential 6

Headquartered in Toledo, Ohio, Marco’s Pizza was named America’s

Favorite Pizza Company (Market Force study) in 2017, and is the fastest-

growing pizza company in the United States. Marco’s was founded in

1978 by Italian born, Pasquale (“Pat”) Giammarco and thrives by making

Italian Pizza with fresh ingredients.

The company has grown from its roots as a beloved Ohio brand to operate

more than 800 stores in over 30 states and four countries. Recent

accolades include landing No.38 on Entrepreneur’s Franchise 500 list,

No. 2 on Forbes’ Top 10 Franchises to Invest In in the medium

investment range, No. 3 on the Military Times Best For Vets list and No.

4 on the Franchise Times Fast and Serious list.

As the only American franchise chain founded by a native Italian,

Marco’s Pizza has carved out a niche in the industry as the expert in

authentic Italian pizza, known for its fresh never-frozen dough made daily

on site, a proprietary cheese blend that is fresh never-frozen, and a secret

pizza sauce recipe. Opening a new store on average every three days,

Marco’s Pizza is on track to add over 100 new locations this year and

aims to have 1,500 locations open by 2020.

Marco's Pizza employs about 20,000 people in: [Alabama, Arizona,

Arkansas, California, Colorado, Florida, Georgia, Illinois, Indiana, Iowa,

Kansas, Kentucky, Louisiana, Michigan, Minnesota, Mississippi,

Missouri, Nebraska, Nevada, New York, North Carolina, North Dakota,

Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee,

Texas, Utah, Virginia, West Virginia and Wisconsin. Marco's also

operates in the Bahamas, India and Puerto Rico].

Marco’s Pizza Overview

Company: Marco’s Pizza

Holding Company: Marco’s Franchising, LLC.

Year Founded: 1978

Ownership Type: Private

Founder: Pasquale Giammarco; Private Family

Locations: 800+

Employees: 20,000+

Company Headquarters: Toledo, OH

Website: www.marcos.com

Marco’s Piz za Overv i ew

7

Colorado Springs Overview

Proprietary and confidential

Colorado Springs Overview

Located 70 miles south of Denver, Colorado Springs is the state’s second largest city and home

to over 435,0000 people. The city was named a top five place to live in the United States by

U.S. News and World Report, a testament to the city’s growth and quality of life standard. The

city is also well-supported by strength in higher education, being home to respected institutions

such as Colorado College and The United States Air Force Academy.

Colorado Springs has historically possessed a healthy labor market, as its employment

infrastructure is driven by federal defense spending and is thus provided with long-term

stability.

In the public sector, the area has long been home to large military installations including Fort

Carson, The United States Air Force Academy, Schriever Air Force Base, and Cheyenne

Mountain. In total, these operations employ approximately 60,000 people and contribute nearly

$6 billion to the state’s economy.

Location Highlights

Demographics1-MILE

RADIUS

3-MILE

RADIUS

5-MILE

RADIUS

POPULATION2022 Projection 18,798 132,455 310,914

2017 Estimate 18,341 127,537 295,556

2017 Number of Households 7,835 50,514 117,085

2017 - 2022 Projected Growth 0.5% 0.8% 1.0%

Age 0 - 14 20.0% 19.4% 20.1%

Age 15 - 24 14.5% 13.1% 13.3%

Age 25 - 44 30.0% 28.1% 28.5%

Age 45 - 64 22.1% 25.0% 24.7%

Age 65+ 13.3% 14.4% 13.1%

ESTIMATED HH INCOMELess than $35,000 31.4% 21.3% 25.0%

$35,000 - $49,999 16.5% 13.5% 14.1%

$50,000 - $74,999 20.4% 22.6% 20.5%

$75,000 - $99,999 12.9% 15.4% 14.0%

More than $100,000 18.9% 27.3% 26.3%

Average Estimated HH Income $66,419 $81,112 $78,426

Median HH Income $51,739 $64,480 $60,716

Favorable Socioeconomic Location – Within a three-mile radius of the Property, Colorado

Springs’ affluent neighborhoods possess an average household income of over $81,000,

suggesting long-term consumer activity for Marco’s Pizza.

Strong Property Visibility – The Asset benefits from substantial traffic counts at a main and

main location, with over 33,000 vehicles passing daily.

Dense Retail Submarket with Development Activity – The Property is located within one of

Colorado Springs’ most populated retail corridors, hosting 25 national retailers including King

Soopers (Kroger), Walmart, Walgreens, 24-Hour Fitness, Ace Hardware, McDonald’s,

Wendy’s Starbucks, and Chase Bank. The corridor has also featured national tenant

development activity, with deliveries such as the adjacent Verizon pad (currently listed on-

market by JLL) occurring in 2017.

© 2017 Jones Lang LaSalle IP, Inc. All rights reserved. The information contained in this document is proprietary to JLL and shall be used solely for the purposes of evaluating this proposal. All such

documentation and information remains the property of JLL and shall be kept confidential. Reproduction of any part of this document is authorized only to the extent necessary for its evaluation. It is not

to be shown to any third party without the prior written authorization of JLL. All information contained herein is from sources deemed reliable; however, no representation or warranty is made as to the

accuracy thereof.

www.jllproperty.us/net-lease

JLL Contacts

Investment Sales Contacts:

Jason Schmidt Matthew Berres

Colorado: National Platform:

+ 1 303 217 7953 +1 424 901 8202

jason.schmidt@am.jll.com matthew.berres@am.jll.com

Scott Bailey Adam Friedlander

National Platform: National Platform:

+ 1 424 901 8204 +1 424 901 8201

scott.bailey@am.jll.com adam.friedlander@am.jll.com