Chick Fil A - Dallas, TX by STRIVE

DALLAS, TX

PRICING & FINANCIAL ANALYSIS

CHICK-FIL-A

FINANCIAL ANALYSIS

Chick-Fil-A (Ground Lease) 9111 Garland Road Dallas, TX 75218

Offering Summary Price Cap Rate Net Operating Income Gross Leasable Area Lot Size

3.75% $140,000 2017 4,779 SF 1.37 Acres

Lease Summary Lease Term

20 Years

Annualized Operating Data Year(s)

Commencement

Annual

Increase

1-5

03/15/2017

$140,000

6-10

04/01/2022

$154,000

10.00%

11-15

04/01/2027

$169,000

10.00%

16-20

04/01/2032

$186,340

10.00%

Option 1: 21-25

04/01/2037

$204,974

10.00%

03/15/2017

Option 2: 26-30

04/01/2042

$225,471

10.00%

Lease Expiration

03/31/2037

Option 3: 31-35

04/01/2047

$248,018

10.00%

Remaining Term

20 Years

Option 4: 36-40

04/01/2052

$272,820

10.00%

Ground

Option 5: 41-45

04/01/2057

$300,102

10.00%

Tenant

Option 6: 46-50

04/01/2062

$330,112

10.00%

Option 7: 51-55

04/01/2067

$363,123

10.00%

Option 8: 56-60

04/01/2072

$399,436

10.00%

Lease Type Roof & Structure Increases Options Options to Purchase

10% Every 5 Years 8 x 5 Year Yes - ROFR

Net Operating Income

MARKET OVERVIEW

Lease Commencement

PROPERTY DESCRIPTION

Year Built

$3,735,000

$140,000

Note: Property is currently under construction and scheduled to open for business July 6, 2017. This date is subject to change. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Â© 2017 STRIVE

TENANT INFORMATION

CHICK-FIL-A

FINANCIAL ANALYSIS

Company Summary Company Ownership Sales Volume Number of Locations Years In Business Headquarters Website

Chick-Fil-A Private $6 Billion

PROPERTY DESCRIPTION

Credited with inventing Chick-fil-A’s boneless breast of chicken sandwich, Mr. Cathy founded Chick-fil-A, Inc. in the early 1960s and pioneered the establishment of restaurants in shopping malls with the opening of the first Chick-fil-A Restaurant at a mall in suburban Atlanta in 1967. Since then, Chick-fil-A has steadily grown to become the largest quick-service chicken restaurant chain in the United States, based on domestic annual sales with over 1,900 locations in 42 states and Washington, D.C. In 2014, annual sales were nearly $6 billion. Chick-fil-A is still privately held and family owned. With 47 consecutive years of positive sales growth, Chick-fil-A has set itself apart by pioneering innovations and delicious products—including the ever-popular Chick-fil-A® Chicken Sandwich.

2,000+ 70 Years College Park, GA www.chick-fil-a.com

MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

INVESTMENT HIGHLIGHTS

CHICK-FIL-A

FINANCIAL ANALYSIS

• Core A+ Inner City Barrier to Entry Highly Desirable Location - White Rock Lake and Lakewood Community of Dallas, TX • Pride of Ownership – Chick-Fil-A Ground Lease • White Rock Lake, the Crown Jewel of Dallas’ Park System, is Enjoyed by More Than 1 Million Visitors Per Year • New 20-Year Absolute Net Ground Lease with 8 x 5 Year Options and 10% Rent Increases Every 5 Years

PROPERTY DESCRIPTION

• 2017 Construction with July 6th Target Opening Date • Strong Corporate Guarantee with Replaceable Rent • Large Lot with Double Drive-Thru Lanes - Located on 1.37 acres on Land • Traffic Counts in Excess of 39,000 Vehicles per Day Along Main Thoroughfare - Garland Road • Adjacent to White Rock Lake and the Dallas Arboretum

MARKET OVERVIEW

• Strong Demographics and Desirable Area to Live • Population in 5 Mile Radius Exceeds 395,000 People and Daytime Employment 402,000+ People • Average Household Income in 1 miles of More Than $106,000 - One of the Highest in the City

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

SITE PLAN

CHICK-FIL-A

FINANCIAL ANALYSIS PROPERTY DESCRIPTION MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. ÂŠ 2017 STRIVE

AERIAL MAP

CHICK-FIL-A

FINANCIAL ANALYSIS

Arboretum Village

Downtown Dallas

Uptown

Lakewood

PROPERTY DESCRIPTION

Dallas Arboretum

White Rock Lake

White Rock Park

AERIAL MAP

CHICK-FIL-A

Whiterock Marketplace FINANCIAL ANALYSIS

Casa Linda Plaza

PROPERTY DESCRIPTION

Lakeside Baptist Church

LOCAL MAP

CHICK-FIL-A

REGIONAL MAP

CHICK-FIL-A

MARKET SUMMARY

CHICK-FIL-A

FINANCIAL ANALYSIS PROPERTY DESCRIPTION

DALLAS, TX Dallas encompasses half of the Dallas/Fort Worth Metroplex and is the third-largest city in Texas and the ninth-largest city in the United States. Dallas is home to the third-largest concentration of Fortune 500 companies in the country and is the largest economic center of the Dallas/Fort Worth metropolitan area. The Metroplex has strong submarket occupancy rates, is home to more shopping centers per capita and has one of the largest concentrations of corporate headquarters for publicly traded companies in the United States.

Dallas is the best-ranked city on the Regulatory Climate Index thanks to its efficient local regulations. Entrepreneurs and small businesses can expect a welcoming business environment across all five areas of local regulation. Dallas scores above average across each meaningful measure of an interaction that a business has with a local government agency through procedure, time, and cost. These rankings reflect the city’s continuing efforts to develop programs and initiatives to strengthen the business environment, provide access to capital, and encourage economic growth at the local level.

MARKET OVERVIEW

The city is the largest economic center of the 12-county Dallas–Fort Worth–Arlington metropolitan area, which had a population of 6,810,913 people as of July 1, 2013. The metropolitan economy is the sixth largest in the United States, with a 2012 real GDP of $420.34 billion. In 2013 the metropolitan area led the nation with the largest year-over-year increase in employment, and advanced to become the fourth-largest employment center in the nation (behind New York City, Los Angeles, and Chicago) with more than three million non-farm jobs. In the

latest rankings released in 2013, Dallas was rated as a “beta plus” world city by the Globalization and World Cities Study Group & Network. Dallas is also ranked 14th in world rankings of GDP by the Organization for Economic Co-operation and Development. The Dallas-Fort Worth Metroplex has one of the largest concentrations of corporate headquarters for publicly traded companies in the United States. The city of Dallas has 12 Fortune 500 companies, and the DFW region as a whole has 20.

DEMOGRAPHIC SUMMARY

CHICK-FIL-A

Geography: 5 Miles

FINANCIAL ANALYSIS

Population In the identified area, the 2016 population was 396,086. The rate of change since 2010 was 0.95%. The five-year projection for the population in the area was 421,163 representing a change of 1.24% from 2016 to 2021. The 2016 population was 49.7% male and 50.3% female. The median age in this area was 43.4, compared to U.S. median age of 38.0.

Households In 2016 there were 155,279 households in your selected geography. The number of households has changed by 2.26% since 2010. It is estimated that the number of households in your area will be 164,418 five years from 2016, which represents a change of 1.15% from 2016. The average household size in your area for 2016 was 2.52 persons.

PROPERTY DESCRIPTION

Income In 2016, the median household income for your selected geography was $46,824, compared to the Entire US average which was $54,149. It is estimated that the median household income in your area will be $50,168 in 2021, which represents a change of 1.33% from 2016. The 2016 per capita income in your area was $30,711, compared to the Entire US average, which was $29,472. The 2016 average household income in your area was $77,438, compared to the Entire US average which was $77,008.

Race and Ethnicity The 2016 racial makeup of your selected area was as follows: 57.2% White, 17.3% Black, 0.7% Native American and 3.5% Asian/Pacific Islander. Compare these to Entire US averages which were: 71.60% White, 12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin made up 41.2% of the 2016 population in your selected area. Compare this to the Entire US average of 17.9%.

Housing MARKET OVERVIEW

In 2016, there were 65,976 owner occupied housing units in your area and there were 89,304 renter occupied housing units in your area. Median home value in the area was $202,466, compared to a median home value of $198,891 for the U.S.

Employment In 2016, there were 196,046 employees in your selected area; this is also known as the daytime population. In 2016, 58.8% of employees were employed in white-collar occupations in this geography, and 21.3% were employed in blue-collar occupations. In 2016, unemployment in this area was 4.8%.

Demographic data ÂŠ 2016 esri This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. ÂŠ 2017 STRIVE

DEMOGRAPHIC STATISTICS

1-Mile

3-Miles

5-Miles

Income

2000 Population

6,121

115,207

395,463

2010 Population

6,873

113,965

2016 Population

7,222

2021 Population

7,627

1-Mile

3-Miles

5-Miles

$ 0 - $14,999

8.6%

13.6%

14.1%

373,277

$ 15,000 - $24,999

5.1%

10.1%

12.3%

120,659

396,086

$ 25,000 - $34,999

5.7%

10.3%

12.3%

128,209

421,163

$ 35,000 - $49,999

10.8%

12.6%

13.6%

$ 50,000 - $74,999

20.8%

16.1%

15.7%

$ 75,000 - $99,999

14.8%

11.5%

10.4%

$100,000 - $149,999

15.6%

12.5%

10.4%

8.1%

5.3%

4.4%

10.5%

7.9%

6.9%

1-Mile

3-Miles

5-Miles

$150,000 - $199,999

2000 Households

3,060

47,199

158,131

$200,000+

2010 Households

3,579

46,134

148,081

2016 Median Household Income

$73,178

$53,897

$46,824

2016 Households

3,717

48,268

155,279

2016 Per Capita Income

$53,376

$34,280

$30,711

2021 Households

3,902

51,021

164,418

2016 Average Household Income

$103,520

$85,502

$77,438

2016 Daytime Population

7,424

94,208

402,671

2016 Average Household Size

1.92

2.49

2.52

2010 Owner Occupied Housing Units

51.1%

54.7%

39.8%

2010 Renter Occupied Housing Units

42.8%

36.1%

48.8%

6.2%

9.2%

11.4%

2016 Owner Occupied Housing Units

50.2%

52.3%

37.5%

2016 Renter Occupied Housing Units

44.4%

38.4%

50.8%

2016 Vacant

5.4%

9.3%

11.6%

2021 Owner Occupied Housing Units

51.4%

52.5%

37.5%

2021 Renter Occupied Housing Units

45.3%

39.0%

51.3%

3.3%

8.4%

11.2%

2010 Vacant

Traffic Counts

MARKET OVERVIEW

2021 Vacant

PROPERTY DESCRIPTION

Households

FINANCIAL ANALYSIS

Population

CHICK-FIL-A

39,000 34,830

CONFIDENTIALITY AGREEMENT The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from STRIVE and it should not be made available to any other person or entity without the written consent of STRIVE. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to STRIVE. This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. STRIVE has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenantâ&#x20AC;&#x2122;s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, STRIVE has not verified, and will not verify, any of the information contained herein, nor has STRIVE conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT STRIVE AGENT FOR MORE DETAILS.

Net Lease Disclaimer STRIVE hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, STRIVE has not and will not verify any of this information, nor has STRIVE conducted any investigation regarding these matters. STRIVE makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. STRIVE expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release STRIVE and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

Approved by the Texas Real Estate Commission for Voluntary Use Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

Information About Brokerage Services

efore working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner’s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer’s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly. IF THE BROKER REPRESENTS THE OWNER: The broker becomes the owner’s agent by entering into an agreement with the owner, usually through a written - listing agreement, or by agreeing to act as a subagent by accepting an offer of subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner’s agent anything the buyer would not want the owner to know because an owner’s agent must disclose to the owner any material information known to the agent. IF THE BROKER REPRESENTS THE BUYER: The broker becomes the buyer’s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer’s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer’s agent anything the owner would not want the buyer to know because a buyer’s agent must disclose to the buyer any material information known to the agent. IF THE BROKER ACTS AS AN INTERMEDIARY: A broker may act as an intermediary between the parties if the broker complies with The Texas Real Estate License Act. The broker must obtain

the written consent of each party to the transaction to act as an intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermediary in a transaction: (1) shall treat all parties honestly; (2) may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner; (3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and (4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property.

With the parties’ consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party. If you choose to have a broker represent you, you should enter into a written agreement with the broker that clearly establishes the broker’s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding.

Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records.

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