Taco Cabana - San Antonio, TX

SAN ANTONIO, TX

PRICING & FINANCIAL ANALYSIS

TACO CABANA

FINANCIAL ANALYSIS

Taco Cabana 20720 US Hwy 281 N San Antonio, TX 78258

Annualized Operating Data

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

Annual

Increase

1-10

9/22/2003

$137,313

-

$142,889

11

9/22/2013

$138,686

1.00%

2002

12

9/22/2014

$140,073

1.00%

3,630 SF

13

9/22/2015

$141,474

1.00%

1.09 Acres

14

9/22/2016

$142,889

1.00%

15-20

9/22/2017

$144,318

1.00%

21

9/22/2023

$145,761

1.00%

22

9/22/2024

$147,219

1.00%

23-25

9/22/2025

$148,691

1.00%

Option: Year 26

9/22/2028

$150,178

1.00%

Year 27

9/22/2029

$151,680

1.00%

Year 28-30

9/22/2030

$153,197

1.00%

Option: Year 31

9/22/2033

$154,729

1.00%

Year 32

9/22/2034

$156,276

1.00%

Year 33-35

9/22/2035

$157,838

1.00%

Option: Year 36

9/22/2038

$159,416

1.00%

Year 37

9/22/2039

$161,010

1.00%

Year 38-40

9/22/2040

$162,620

1.00%

Lease Summary Original Lease Term

20 Years

Original Lease Commencement

9/22/2003

Current Term Lease Expiration

9/21/2028

Remaining Term Lease Type Roof & Structure Increases Options Options to Purchase

11.5 Years NNN Tenant Yes 3 x 5 Year Yes

Net Operating Income:

MARKET OVERVIEW

Commencement

5.00%

Year(s)

PROPERTY DESCRIPTION

Year Built

$2,858,000

$142,889

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

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TENANT INFORMATION

TACO CABANA

FINANCIAL ANALYSIS

Tenant or Company Summary Company Ownership Ticker Symbol Exchange Market Cap Sales Volume Number of Locations Years In Business Headquarters Website

Taco Cabana Public - Fiesta Restaurant Group, Inc. FRGI NASDAQ

PROPERTY DESCRIPTION

Taco Cabana is an American fast casual restaurant chain specializing in Mexican cuisine. A wholly owned subsidiary of Fiesta Restaurant Group, Inc, it is headquartered in San Antonio, Texas. As of September 2016 Taco Cabana had 166 locations throughout Texas, Oklahoma and New Mexico. Most Taco Cabana restaurants have a drive-thru and many are open 24 hours a day. For most of the chain’s history all locations were painted in the company’s signature pink. Taco Cabana is known for its interior, semi-enclosed and patio dining areas. Most menu items are handmade daily on site in open display cooking areas including fajitas on an open-flame grill and tortillas made in-house.

$706 Million $719 Million 166+ 38 Years San Antonio, TX www.tacocabana.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

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INVESTMENT HIGHLIGHTS

Lease

–

Zero

FINANCIAL ANALYSIS

• Long-Term NNN Responsibility

TACO CABANA

Landlord

• Corporate Guarantee Lease – (Nasdaq: FRGI) • Taco Cabana Exercised Their First 5 Year Option 11 Years Early – Proving Their Commitment to The Site • Outstanding Store Performance – Top 1 Percent of All Taco Cabana Locations

PROPERTY DESCRIPTION

• Located in The Middle of The Strongest Demographic Growth and Desired Corridor of San Antonio • Pad to Home Depot Shopping Center That Includes Planet Fitness, US Citizenship and Immigration Services, and Others • Located in Close Proximity to Johnson High School (3,000 Students) and Ronald Reagan High School (3,100 Students)

MARKET OVERVIEW

• Surrounding National Retailers Include H-E-B Plus! Sam’s Club, Target, Hobby Lobby, Walgreens, HomeGoods, DSW, and Many More • Average Household Income is More Than 1.5x The National Average Within a One-Mile Radius • Traffic Counts Along US Highway 281 Exceed 83,000 Vehicles Per Day

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

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AERIAL MAP

TACO CABANA

FINANCIAL ANALYSIS

Village at Stone Oak

US

Hw y

281

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. Š 2017 STRIVE

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LOCAL MAP

TACO CABANA

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. Š 2017 STRIVE

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REGIONAL MAP

TACO CABANA

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. Š 2017 STRIVE

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MARKET SUMMARY

TACO CABANA

FINANCIAL ANALYSIS PROPERTY DESCRIPTION

SAN ANTONIO, TX

The city has characteristics of other western urban centers in which there are sparsely populated areas and a low density rate outside of the city limits.

San Antonio is the center of the San Antonio–New Braunfels Metropolitan Statistical Area. Commonly referred to as Greater San Antonio, the metropolitan area has a population of over 2.27 million based on the 2013 US Census estimate, making it the 25th-

largest metropolitan area in the United States and third-largest in the state of Texas. Growth along the Interstate 35 and Interstate 10 corridors to the north, west and east make it likely that the metropolitan area will continue to expand.

The US armed forces have numerous facilities in San Antonio: Fort Sam Houston, Lackland Air Force Base, Randolph Air Force Base (which constitute Joint Base San Antonio), and Lackland AFB/Kelly Field Annex, with Camp Bullis and Camp Stanley located outside the city. Kelly Air Force Base operated out of San Antonio until 2001, when the airfield was transferred to Lackland AFB. The remaining portions of the base were developed as Port San Antonio, an industrial/business park. San Antonio is home to six Fortune 500 companies and the South Texas Medical Center, the only medical research and care provider in the South Texas region.

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

MARKET OVERVIEW

San Antonio (Spanish for “Saint Anthony”), officially the City of San Antonio, is the seventh most populated city in the United States of America and the second most populated city in the state of Texas, with a population of 1,409,019. It was the fastest growing of the top 10 largest cities in the United States from 2000 to 2010, and the second from 1990 to 2000. The city is located in the American Southwest, the south–central part of Texas, and the southwestern corner of an urban region known as the Texas Triangle.

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DEMOGRAPHIC SUMMARY

TACO CABANA

Geography: 5 Miles

FINANCIAL ANALYSIS

Population In the identified area, the 2016 population was 181,016. The rate of change since 2000 was 111%. The five-year projection for the population in the area was 199,717 representing a change of 10.33% from 2016 to 2021. The 2016 population was 48.7% male and 51.3% female. The median age in this area was 36.6, compared to U.S. median age of 38.0.

Households In 2016 there were 66,334 households in your selected geography. The number of households has changed by 2.11% since 2000. It is estimated that the number of households in your area will be 72,720 five years from 2016, which represents a change of 1.86% from 2016. The average household size in your area for 2016 was 2.72 persons.

PROPERTY DESCRIPTION

Income In 2016, the median household income for your selected geography was $94,889, compare this to the Entire US average which was currently $54,149. It is estimated that the median household income in your area will be $102,090 five years from 2016, which represents a change of 1.07% from 2016.

The 2016 per capita income in your area was $43,621, compared to the Entire US average, which was $29,472. The 2016 average household income in your area was $118,563, compared to the Entire US average which was $77,008.

Race and Ethnicity The 2016 racial makeup of your selected area was as follows: 79.9% White, 4.9% Black, 0.4% Native American and 5.6% 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 33.5% of the 2016 population in your selected area. Compare this to the Entire US average of 17.9%.

MARKET OVERVIEW

Housing In 2016, there were 46,038 owner occupied housing units in your area and there were 20,296 renter occupied housing units in your area. Median home value in the area was $245,076, compared to a median home value of $198,891 for the U.S.

Employment In 2016, there were 156,723 employees in your selected area; this is also known as the daytime population. In 2016, 79.0% of employees were employed in white-collar occupations in this geography, and 8.8% were employed in blue-collar occupations. In 2016, unemployment in this area was 2.6% Demographic data Š 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. Š 2017 STRIVE

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DEMOGRAPHIC STATISTICS

1-Mile

3-Miles

5-Miles

2000 Population

3,031

26,103

85,464

2010 Population

7,167

61,880

2016 Population

9,102

2021 Population

10,106

Income

1-Mile

3-Miles

5-Miles

$ 0 - $14,999

2.6%

3.2%

3.5%

157,837

$ 15,000 - $24,999

3.1%

3.5%

4.4%

70,303

181,016

$ 25,000 - $34,999

3.7%

4.3%

5.1%

77,959

199,717

$ 35,000 - $49,999

7.4%

8.0%

8.7%

$ 50,000 - $74,999

14.8%

14.4%

15.7%

$ 75,000 - $99,999

14.9%

14.4%

15.1%

$100,000 - $149,999

28.6%

24.8%

23.0%

Households

1-Mile

3-Miles

5-Miles

$150,000 - $199,999

13.4%

13.9%

12.0%

2000 Households

1,058

9,051

31,334

$200,000+

11.5%

13.4%

12.5%

2010 Households

2,720

22,399

58,528

2016 Median Household Income

2016 Households

3,369

25,313

66,334

2016 Per Capita Income

2021 Households

3,714

28,005

72,720

2016 Average Household Income

2016 Daytime Population

8,602

74,200

156,723

2016 Average Household Size

2.66

2.76

2.72

2010 Owner Occupied Housing Units

61.3%

63.8%

68.4%

2010 Renter Occupied Housing Units

26.0%

28.7%

25.7%

2010 Vacant

12.7%

7.5%

5.9%

2016 Owner Occupied Housing Units

62.0%

61.7%

66.7%

2016 Renter Occupied Housing Units

34.7%

33.6%

29.4%

2016 Vacant

3.3%

4.7%

3.8%

2021 Owner Occupied Housing Units

61.8%

61.5%

66.5%

2021 Renter Occupied Housing Units

36.2%

34.5%

30.1%

2021 Vacant

2.0%

4.0%

3.5%

$43,519

$94,889

$44,840

$43,621

$120,487 $124,077

$118,563

PROPERTY DESCRIPTION

$103,669 $102,653

FINANCIAL ANALYSIS

Population

TACO CABANA

Traffic Counts

21,533

MARKET OVERVIEW

82,906

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. Š 2017 STRIVE

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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 tenant’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.

B

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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