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Scottsburg, IN

HARDEE’S1 1 2 8 W M C C L A I N AV E | S C O T T S B U R G, I N 4 7 1 7 0

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

TABLE OF CONTENTS03 EXECUTIVE OVERVIEW

04 FINANCIAL OVERVIEW

05 TENANT OVERVIEW

REPRESENTATIVE PHOTO

08 AREA OVERVIEW

Kyle MatthewsBroker of Record

License No. RC51700140 (IN)

Andrew IvankovichSenior AssociateLicense No. 678815O (214) 692-2037M (626) 807-3586

andrew.ivankovich@matthews.com

Braden CrockettVP & Director

License No. 01946071O (214) 692-2040M (714) 345-6206

braden.crockett@matthews.com

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Scottsburg, IN

Investment Highlights

» Brand New Construction Hardee’s With a Premier Hardee’s/Carl’s Jr. Franchisee – StarCorp, LLC. (135+ Units Nationwide)

» Absolute NNN 20-Year Lease – Zero Landlord Responsibilities

» Rent and Lease Will Commence Upon Certificate of Occupancy – Grand Opening Expected Fall 2019

» Excellent Hedge Against Inflation - 10% Rental Increases Every 5 Years

» StarCorp, LLC is the Fastest Growing Franchisee in the CKE System – Recent Acquisitions, New Development & Backfills

» Scottsburg is the County Seat of Scott County

» Hardee’s Sits Directly to the East of the I-65 Off Ramp

» Sits in Perfect Position between the Major Highway and the Vast Majority of Scottsburg’s Residents

» 15,000 Vehicles Per Day on W McClain Ave

» Target Demographic for Hardee’s – Average Household Income Circling $60,000 in a 1-Mile and 3-Mile

» Hardee’s Offers Landlord a National Operator with a Strong Presence in the Northern Southeast

Executive Overview

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HARDEE’S

Annualized Operating DataAnnual Rent Mont Rent Cap Rate

10/15/2019 - 10/14/2024 $138,094.00 $58.51 6.00%

10/15/2024 - 10/14/2029 $151,903.40 $64.37 6.60%

10/15/2029 - 10/14/2034 $167,093.74 $70.80 7.26%

10/15/2034 - 10/31/2039 $183,803.11 $77.88 7.99%

Option 1 $202,183.43 $85.67 8.78%

Option 2 $222,401.77 $94.24 9.66%

Option 3 $244,641.94 $103.66 10.63%

Option 4 $269,106.14 $114.03 11.69%

Tenant Summary

Tenant Trade Name Hardee's

Lease Guarantor Franchisee

Lease Type Absolute NNN

Original Lease Term 20 Years

Options Four, 5-year options

Increases 10% Every 5 Years

Investment Summary » N A M E

» P R O P E RT Y A D D R E S S

» * L I ST P R I C E

» * N O I ( Y E A R 1 - 5 )

» C A P R AT E ( Y E A R 1 - 5 )

» Y E A R B U I LT

» T O TA L L A N D A R E A

$2,301,573

6.00%

$138,094

2019

Financial Overview

± 1.55 Acres

Hardee’s

1128 W McClain Ave Scottsburg, IN 47170

REPRESENTATIVE PHOTO

* Rent is based on final construction cost and is subject to change until completion.

Huntsville, ALTenant Overview

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TENANT OVERVIEWAs a subsidiary of fast food giant CKE Restaurants, Hardee’s Food Systems is a leading fast food chain operator with more than 1,950 locations in some 30 states, primarily in the Midwest and Southeast. The chain offers a variety of premium-priced Angus beef hamburgers under such names as Thickburger, Six Dollar Burger, and the Monster Thickburger. Hardee’s also serves up chicken sandwiches, salads, fries, and beverages, as well as dessert items. About 475 of the restaurants are operated by the company, while the rest are franchised.GEOGRAPHIC OUTREACHSince the opening of the first restaurant in Greenville, North Carolina in 1960, Hardee’s has established a strong presence throughout the Midwest and Southeast. Most locations are in the United States, distributed among some 30 states. STRATEGYThe company’s Hardee’s chain has started to incorporate its own dual branding strategy, pairing some of its locations with Red Burrito outlets. Plans to continue expansion in international markets are underway and involve the use of franchise development agreements. CKE is targeting growth in Brazil, Canada, China, and Russia. In 2014 Carl’s Jr. announced plans to expand in Ontario, Canada’s “Golden Horseshoe,” a territory that includes Toronto, Mississauga, Oakville, Burlington, Hamilton, Brantford and London. Hardee’s chains market themselves as gourmet burger outlets with slightly higher menu prices. In lieu of rapid expansion, CKE has focused on managing costs and investing in additional marketing efforts to drive traffic to its restaurants. Its chains target primarily a young, male demographic with oversized burgers made with premium Angus beef.

P A R E N T C O M P A N Y T R A D E N A M E C K E R E S T A U R A N T S H O L D I N G S , I N C .

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

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REPRESENTATIVE PHOTO

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Scottsburg, IN

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HARDEE’SArea Overview

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Scottsburg, IN

D E M O G R A P H I C S

POPULATION 3 Mile 5 Mile 10 Mile

2000 Census 8,434 16,261 21,4532010 Census 8,955 16,848 22,3912019 Estimate 8,964 16,655 22,1662024 Projection 9,092 16,833 22,393

HOUSEHOLDS 3 Mile 5 Mile 10 Mile

2000 Census 3,416 6,359 8,2772010 Census 3,617 6,664 8,7442019 Estimate 3,661 6,656 8,7372024 Projection 3,727 6,751 8,855INCOME 3 Mile 5 Mile 10 Mile

2019 Est. Avg HH Income $67,227 $64,013 $65,342

Scottsburg is a city in Vienna Township, Scott County, Indiana. The city of Scottsburg is primarily a historically driven town. However, there have been recent projects that the city has been working on, moving towards a Downtown Revitalization Master Plan that will identify goals, policies and action steps to guide development and growth over the next 20 years.

Scottsburg is situated very close to Louisville, Kentucky. In fact, Scottsburg is apart of the Louisville-Jefferson County, KY-IN Metropolitan Statistical Area, sometimes also referred to as Kentuckiana. Kentuckiana includes Louisville-Jefferson County and 12 surrounding counties, seven in Kentucky and five in Southern Indiana. Fortunately, Louisville is the largest city in the commonwealth of Kentucky. It is one of two cities in Kentucky designated as first-class, the other being Lexington, the state’s second-largest city. Louisville today is home to dozens of companies and organizations across several industrial classifications. Some of the top industries include shipping, manufacturing, and technology. However, Louisville prides itself in its large assortment of small, independent businesses and restaurants, some of which have become known for their ingenuity and creativity.

S C O T T S B U R G, I N

Confidentiality Agreement & Disclaimer

This Offering Memorandum contains select information pertaining to the business and affairs of a Hardee’s located at 1128 W McClain Ave, Scottsburg, IN 47170 (“Property”). It has been prepared by Matthews Real Estate Investment Services. 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 Matthews Real Estate Investment Services. 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 of 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 for the Property, you agree:

1. The Offering Memorandum and its contents are confidential;2. You will hold it and treat it in the strictest of confidence; and3. 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 Matthews Real Estate Investment Services 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 the Property 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 Matthews Real Estate Investment Services 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.

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Scottsburg, IN

Offering Memorandum SITE RENDERING

Kyle MatthewsBroker of Record

License No. RC51700140 (IN)

Andrew IvankovichSenior AssociateLicense No. 678815O (214) 692-2037M (626) 807-3586

andrew.ivankovich@matthews.com

Braden CrockettVP & Director

License No. 01946071O (214) 692-2040M (714) 345-6206

braden.crockett@matthews.com