T i m H o r t o n s , E s s e x v i l l e , M I | 1

Tim Hortons2 9 0 6 C e n t e r A v e n u e | E s s e x v i l l e , M I

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

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g a r y c h o u

SVP & Senior Director

gary.chou@matthews.com DIR (310) 919-5827MOB (714) 928-8016LIC # 01911222 (CA)

Representative Photo

K y l e M at t h e w sBROKER OF RECORD

LIC # 6505399495

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

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LONG-TERM, WORRY-FREE INVESTMENT• Long-Term Lease – Tenant to sign brand new 20-year lease with 4, 5-year options at

the close of escrow

• Absolute NNN Lease – Zero landlord responsibilities with tenant taking care of taxes,insurance, maintenance, roof and structure

• Growing Cash Flow – 7.50% increases scheduled every 5 years in the base term andoptions

STRATEGICALLY PICKED LOCATION

• Ideal Retail Area – Outparceled to Kroger and JOANN Fabrics and Crafts – Other nationaltenants in the immediate area include Walgreens, McDonald’s, Taco Bell, KFC, Wendy’s,Pizza Hut, and Little Caesars, among others

• Traffic Counts – Over 23,800 VPD on Center Avenue

• Healthy Demographics – There are over 6,800 people living in a 1-mile radius (39,000 ina 3-mile and 65,100 in a 5-mile)

SEASONED OPERATOR OF AN EXCELLENT BRAND

• Operator is Kava Restaurants, LLC - a 24+ unit operator of Tim Hortons with strong plans for expansion through acquisition and by organic growth

• Tim Hortons – Restaurant Brands International acquired Tim Hortons at end of 2014 –The concept has over 4,600 locations across 9 countries – Annual revenues exceed $3B

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Annualized Operating DataMonthly Rent Annual Rent Increases Rent/SF Cap Rate

Current Rent Period $6,526.00 $78,312.00 7.50% $30.12 6.20%

Rent Period 2 $7,015.45 $84,185.40 7.50% $32.38 6.66%

Rent Period 3 $7,541.61 $90,499.31 7.50% $34.81 7.16%

Rent Period 4 $8,107.23 $97,286.75 7.50% $37.42 7.70%

Option 1 $8,715.27 $104,583.24 7.50% $40.22 8.28%

Option 2 $9,368.92 $112,427.04 7.50% $43.24 8.90%

Option 3 $10,071.59 $120,859.08 7.50% $46.48 9.57%

Option 4 $10,826.95 $129,923.40 7.50% $49.97 10.29%

T i m H o r t o n s2906 Center AvenueEssexville, MI 48732

List Price .................................................................................................................. $1,263,000

CAP Rate - Current ..........................................................................................................6.20%

Gross Leasable Area ............................................................................................. ± 2,600 SF

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

Tenant Summary

Tenant Trade Name Tim Hortons

Type of Ownership Fee Simple

Lease Guarantor Kava Restaurants, LLC

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 20 Years

Lease Commencement Date Close of Escrow

Lease Expiration Date TBD

Term Remaining on Lease 20 Years

Increases 7.50% Every 5 Years

Options Four, 5-Year Options

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Property Name Tim Hortons

Parent Company Trade Name Restaurant Brands International

Ownership Public

No. of Locations ± 4,613

No. of Employees ± 100,000

Headquartered Oakville, Ontario, Canada

Website www.timhortons.com

Year Founded 1964

TENANT OVERVIEW

Tim Hortons Inc. (known internationally as Tim Hortons Cafe and Bake Shop, colloquially known as Timmy’s or Tim’s) is a Canadian multinational fast food restaurant. As of December 31, 2016, it had a total of 4,613 restaurants in nine countries. The chain’s focus on top quality, always fresh product, value, great service and community leadership has allowed it to grow into the largest quick service restaurant chain in Canada specializing in always fresh coffee, baked goods, and homestyle lunches.

Restaurant Brands International Inc. (“RBI”) is one of the world’s largest quick service restaurant companies with more than $27 billion in system-wide sales and over 23,000 restaurants in more than 100 countries and U.S. territories. RBI owns three of the world’s most prominent and iconic quick service restaurant brands – Tim Hortons, Burger King, and Popeyes. These independently operated brands have been serving their respective guests, franchisees and communities for over 40 years.

Restaurant Brands International Inc. is committed to growing the Tim Hortons, Burger King, and Popeyes brands by leveraging their respective core values, employee and franchisee relationships, and long track records of community support. The brands benefit from the global scale and shared best practices that come through common ownership under Restaurant Brands International Inc.

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t h e o f f e r i n g

Property Name Tim Hortons

Property Address 2906 Center Avenue

Essexville, MI 48732

Assessor’s Parcel Number 09-070-023-400-665-00

Site DescriptionNumber of Stories One

Type of Ownership NNN

Gross Leasable Area (GLA) ± 2,600 SF

Lot Size ± 0.68 Acres (29,621 SF)

Parking ± 19 Parking Surfaces

Parking Ratio 7.31 : 1,000 SF

Topography Generally Level

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CENTER AVENUE

±23,800 ADT

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±7,4

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Essexville is part of the Bay City, Michigan Metropolitan Statistical Area and is often associated with its larger, western neighbor. Best described today as a bedroom community, Essexville is primarily a residential community whose residents commute to job opportunities within the Saginaw-Bay City-Midland region. Essexville’s neighborhoods and residential properties are well maintained with over 85% of single family homes owner occupied. The Woodside Avenue Business District has a collection of convenience and specialty businesses. The Saginaw River waterfront within the City of Essexville is utilized for bulk storage of petroleum products, cement, stone, agricultural products. Essexville is the closest port to the Saginaw Bay.

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POPULATION 1 Mile 3 Mile 5 Mile

2022 Projection 6,763 38,278 64,036

2017 Estimate 6,801 38,971 65,147

2010 Census 6,879 40,385 67,412

2000 Census 6,657 42,097 70,149

HOUSEHOLDS 1 Mile 3 Mile 5 Mile

2022 Projection 3,089 16,500 27,663

2017 Estimate 3,082 16,664 27,925

INCOME 1 Mile 3 Mile 5 Mile

2017 Est. Average Household Income

$67,979 $57,009 $59,633

e c o n o m i c d e v e l o p m e n tWhile Kennett is home to just under 11,000 residents, it is the main source of business and commerce for up to 100,000 individuals within a 30-mile radius of the city. It is the largest city in the Boot Heel, a mostly agricultural area producing goods like cotton, soybeans, rice, and watermelon that are distributed nationwide. National distribution of goods is made easy by the roadway systems put in place by the Missouri Department of Transportation.

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This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Tim Hortons located at 2906 Center Avenue, Essexville, MI 48732 (“Property”) . I t has been prepared by Matthews Real Estate Investment Services. 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 Real Estate Investment Services. 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 ormanner detr imental to the interest of the Sel ler.

Owner and Matthews Real Estate Investment Services 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 Real Estate Investment Services 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

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Tim Hortons2 9 0 6 C e n t e r A v e n u e | E s s e x v i l l e , M I

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K y l e M at t h e w sBROKER OF RECORDLIC # 6505399496

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

g a r y c h o u

SVP & Senior Director

gary.chou@matthews.com DIR (310) 919-5827MOB (714) 928-8016LIC # 01911222 (CA)