2314 Highway 281 S - JAMESTOWN, NORTH DAKOTA 58401

Burger K ing

ACTUAL PROPERTY

o f f e r i n g m e m o r a n d u m

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. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0332386 1

2314 Highway 281 S - JAMESTOWN, NORTH DAKOTA 58401

Financia l Overv iew

ANNUALIZED OPERATING DATABase Rent Annual Rent Monthly Rent

11/1/2017 10/31/2018 $119,107 $9,926

11/1/2018 10/31/2019 $120,596 $10,050 1.25%

11/1/2019 10/31/2020 $122,103 $10,175 1.25%

11/1/2020 10/31/2021 $123,630 $10,302 1.25%

11/1/2021 10/31/2022 $125,175 $10,431 1.25%

11/1/2022 10/31/2023 $126,740 $10,562 1.25%

11/1/2023 10/31/2024 $128,324 $10,694 1.25%

11/1/2024 10/31/2025 $129,928 $10,827 1.25%

11/1/2025 10/31/2026 $131,552 $10,963 1.25%

11/1/2026 10/31/2027 $133,197 $11,100 1.25%

11/1/2027 10/31/2028 $134,862 $11,238 1.25%

11/1/2028 10/31/2029 $136,547 $11,379 1.25%

11/1/2029 10/31/2030 $138,254 $11,521 1.25%

11/1/2030 10/31/2031 $139,982 $11,665 1.25%

11/1/2031 10/31/2032 $141,732 $11,811 1.25%

11/1/2032 10/31/2033 $143,504 $11,959 1.25%

11/1/2033 10/31/2034 $145,298 $12,108 1.25%

11/1/2033 10/31/2034 $123,772 $10,314 1.25%

PRICE $2,036,018

CAP RATE 5.85%

NOI $119,107

PRICE PER SQUARE FOOT $442.61

RENT PER SQUARE FOOT $25.89

YEAR BUILT 1996/2016

APPROXIMATE LOT SIZE 1.19 Acres

GROSS LEASEABLE AREA 4,600

TYPE OF OWNERSHIP Fee Simple

LEASE GUARANTOR Corporate Guaranty

LEASE TYPE Absolute Net

ROOF AND STRUCTURE Tenant Responsible

LEASE COMMENCEMENT DATE 10/31/2014

LEASE EXPIRATION DATE 10/31/2034

LEASE TERM 20 Years

TERM REMAINING 17 Years

INCREASES 1.25 Percent Annually

OPTIONS TO RENEW Four, Five-Year Options

OPTIONS TO TERMINATE None

OPTIONS TO PURCHASE None

OFFERING SUMMARY

LEASE SUMMARY

ACTUAL PROPERTY

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. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0332386 2

2314 Highway 281 S - JAMESTOWN, NORTH DAKOTA 58401

Investment Overv iew

• Burger King in Jamestown, North Dakota | 95 Miles West of Fargo

• Tenant Demonstrates Commitment | Asset Received “20/20” Remodel Early In 2016

• Nearly 17 Years Remaining on Absolute Net Lease | Zero Landlord Responsibilities

• Strong Inflation Hedge | 1.25 Percent Annual Rent Increases Over the Base Term and in Four, Five-Year Renewal Options

• Lease is Corporately Guaranteed by Meridian Restaurant Unlimited, Limited Company Plus a Full Term Personal Guaranty from Both Principals | 100-Unit Franchisee Restaurant Operators Across Multiple Concepts

• Out Pad to the Buffalo Mall | More Than 213,000 Square Feet of Retail | Anchored by a Brand New Dunham’s Sports, Bison 6 Cinema, and Anytime Fitness

• Adjacent to United States-281 Interchange | Heavily Trafficked Thoroughfare | More Than 20,000 Vehicles Per Day (VPD)

• Nearby Menards and Wal-Mart | Encompassing Nearly 200,000 Square Feet of Retail | Both Located Within One Mile and Built in the Last Five Years

• Jamestown Center Project | Proposed $20-Million Live-Work-Play Development Calling for 500 Residential Units, Hospitality and Retail Uses | Less Than One Mile East

• Additional Tenants in the Immediate Vicinity Include: Tractor Supply Co, Applebee’s, Verizon, McDonald’s, SUBWAY, Arby’s, O’Reilly Auto Parts, NAPA Auto Parts, Taco Bell, Hardee’s, Dairy

Marcus & Millichap is pleased to present this Burger King in Jamestown, North Dakota; which is 95 miles west of Fargo. There are nearly 17 years remaining on Burger King’s absolute net lease, where the tenant is responsible for all expenses associated with the asset. The lease features 1.25 percent annual rent increases over the base term and in the four, five-year renewal options. The lease is corporately guaranteed by Meridian Restaurant Unlimited, Limited Company, as well as a strong, full-term, personal guaranty from its principals. Meridian Restaurant Unlimited, Limited Company is a 100-unit franchisee restaurant operator across multiple concepts. Demonstrating Burger King’s commitment to this location, the tenant invested significant capital to perform the “20/20” remodel early in 2016.

This asset is a pad site to the Buffalo Mall, the largest shopping center in Jamestown, encompassing more than 213,000 square feet of retail. Some of the anchor tenants include a brand new Dunham’s Sports, Bison 6 Cinema, and Anytime Fitness. Additionally, there is a Menard’s and Walmart within one mile, combined they provide nearly 200,000 square feet of retail. Burger King also benefits from being adjacent to United States-281 interchange, providing direct access to Interstate-94. More than 20,000 vehicles pass through this interchange daily.

Less than half a mile from the asset is a $20-million proposed development – Jamestown Center Project. Plans call for a three-story, 500-unit apartment complex with retail and hospitality components. The completed project will feature 12 mixed-use buildings.

Additional tenants in the immediate vicinity include: Tractor Supply Co, Applebee’s, Verizon, McDonald’s, SUBWAY, Arby’s, O’Reilly Auto Parts, NAPA Auto Parts, Taco Bell, Hardee’s, Dairy Queen, Perkins Restaurant and many more.

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. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0332386 3

2314 Highway 281 S - JAMESTOWN, NORTH DAKOTA 58401

Tenant Overv iew - Burger K ing

Every day, more than 11-million guests visit Burger King restaurants around the world. And they do so because Burger King restaurants are known for serving high-quality, great-tasting, and affordable food. Founded in 1954, Burger King is the second largest fast food hamburger chain in the world. The original Home of the Whopper, Burger King’s commitment to premium ingredients, signature recipes, and family-friendly dining experiences is what has defined their brand for more than 50 successful years. In 2010, 3G Capital, a global multi-million-dollar investment firm focused on long term value creation, purchased Burger King Corporation, making it a privately-held company. In 2014, Burger King purchased Tim Hortons, and after the deal closed Burger King was renamed Restaurant Brands International, Incorporated. As of June 2017, 3G capital owns more than 96 percent of Restaurant Brands International.

Meridian Restaurants was founded in 2002 with 14 restaurants, and in 2016 they attained a long-term goal of 100 restaurants consisting of three top-tier brands across eight mid-western states: Burger King, El Pollo Loco, and Chili’s. The tenant; NDM Restaurants, Limited Company; is a wholly owned subsidiary of Meridian Restaurants Unlimited, Limited Company. The lease is corporately guaranteed by Meridian Restaurants Unlimited, Limited Company; as well as a full-term personal guaranty from the entity’s principals: David A. Harper and Stephan L Ralston.

Harper is a Senior Restaurant Operations Executive with more than 25 years of experience in multi-unit management, financial accountability, strategic planning, and project management in both franchisee and company operations. As of March 2016, Harper was an operating partner in more than 70 Burger Kings registering more than $68-Million in annual sales.

TENANT PROFILE

TENANT TRADE NAME Burger King

OWNERSHIP Private

TENANT NDM Restaurants, Limited Company

LEASE GUARANTOR

Meridian Restaurants Unlimited,

Limited Company + Full-Term Personal

Guaranty

NUMBER OF LOCATIONS 100 Units

HEADQUARTERED South Ogden, Utah

WEB SITEhttps://www.meridianrestaurantsunlimited.

com/

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. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0332386 4

2314 Highway 281 S - JAMESTOWN, NORTH DAKOTA 58401

Aer ia l Overv iew

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. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0332386 5

2314 Highway 281 S - JAMESTOWN, NORTH DAKOTA 58401

10 MILE RADIUS

5 MILE RADIUS

3 MILE

SITE281

281

52

52

52 5294 94 94 9494

JamestownBloom

Spiritwood Urbana Eckelson

Ypsilanti

Kloze

Cleveland

Area Overview & Demographics

3-Mile 5-Mile 10-Mile

P o p u l a t i o n2000 Population 14,998 16,900 18,071

2010 Population 14,795 16,545 17,623

2017 Population 14,895 16,652 17,779

2022 Population 15,083 16,860 18,010

Daytime Employment 2,500 32,479 14,743

3-Mile 5-Mile 10-Mile

H o u s e h o l d s

3-Mile 5-Mile 10-Mile

H o u s e h o l d ( H H ) I n c o m e s2000 Households 6,275 6,990 7,434

2010 Households 6,316 7,027 7,468

2017 Households 6,392 7,108 7,570

2022 Households 6,480 7,205 7,677

2017 Average HH Income $67,770 $69,220 $70,473 2017 Median HH Income $50,666 $52,596 $53,655 2017 Per Capita Income $29,083 $29,547 $30,006

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. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0332386 6

2314 Highway 281 S - JAMESTOWN, NORTH DAKOTA 58401

Market Overview - Jamestown, North Dakota

Ja m e s to wn , N o r t h D a k o t a , i n S tu t sma n C o u n t y, i s 9 0 m i l e s w e s t o f Fa rg o , a n d 2 9 3 m i l e s n o r t hw e s t o f M i n n ea p o l i s .T h i s c o u n t y s ea t has n u m e ro u s p a r k s a n d re c rea t i o na l sp o t s t ha t a re f re q u e n te d b y i t s re s i d e n t s . T h e s e i n c l u d e : K lau s Pa r k , N i c k e u s Pa r k , McE l ro y Pa r k a n d F e to n Pa r k . V i s i to r s c a n s h o p a t t h e Ja m e s to wn Ma l l o r Bu f f a l o Ma l l . T h e Na t i o na l Bu f f a l o Mu s e u m , t h e S tu t sma n C o u n t y Me m o r ia l Mu s e u m a n d F ro n t i e r V i l l a g e p ro v i d e i n s i g h t i n to t h e h i s to r y o f t h e a rea . S o m e o f t h e l o c a l f e s t i va l s i n c l u d e C u l tu re F e s t , t h e S tu t sma n C o u n t y Fa i r, K i te F e s t a n d W h i te C l o u d ’s B i r t h day-Ta t a n k a C e l e b ra t i o n .

Ja m e s to wn has a s t ro n g p re c i s i o n ma n u f a c tu r i n g b as e as w e l l as f o o d p ro c e s s i n g , a g r i c u l tu re , re t a i l a n d w h o l e s a l e b u s i n e s s e s . N o t a b l e c o m p a n i e s h ea d q u a r te re d i n Ja m e s to wn i n c l u d e A g r i - C o v e r, In c o rp o ra te d ( A C I ) , Du ra Te c h In d u s t r i e s , a n d M i d w e s te rn Ma c h i n e , a n d a d d i t i o na l ma j o r e m p l o y e r s i n c l u d e C av e n d i s h Fa rm s a n d U TC A e ro sp a c e S y s te m s . S e r v i c e f a c i l i t i e s f o r t ru c k i n g a n d h eav y e q u i p m e n t re p a i r a re a l s o l o c a te d i n Ja m e s to wn .T h e Ja m e s to wn S tu t sma n D e v e l o p m e n t C o rp o ra t i o n su p p o r t s j o i n t b u s i n e s s a n d i n d u s t r i a l d e v e l o p m e n t w i t h i n t h e c i t y a n d S tu t sma n C o u n t y. F o u r d e s i g na te d i n d u s t r i a l p a r k s a d j o i n t h e c i t y o r a re p a r t o f j o i n t c i t y / c o u n t y d e v e l o p m e n t e f f o r t s : B l o o m Bu s i n e s s Pa r k , In te r s t a te - 9 4 Bu s i n e s s Pa r k , Sp i r i t w o o d En e rgy Pa r k , a n d t h e A i rp o r t Bu s i n e s s Pa r k .

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. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0332386 7

2314 Highway 281 S - JAMESTOWN, NORTH DAKOTA 58401

Brokers Of RecordCra i g Pa t t e r son

Ma rcus & M i l l i c hap8300 No rman Cen te r D r i v e, Su i t e 810

B loom ing ton , MN 55437Te l : (952 ) 852-9700Fax : (952 ) 852-9710

L i cense : 8848

Burger King