G R O U P

BRANDON MICHAELS

Situated in a QUALIFIED OPPORTUNITY ZONE

12919 VICTORY BLVD., NORTH HOLLYWOOD, CA 91606

A WELL-LOCATED MCDONALD’S IN THE HIGH-GROWTH EAST SAN FERNANDO VALLEY SUB-MARKET OF NORTH

HOLLYWOOD, CA OFFERING A STABLE AND SECURE INCOME STREAM WITH RENTAL UPSIDE

INVESTMENT ADVISORS

G R O U P

BRANDON MICHAELS

SOUTHERN CALIFORNIA'S PREMIER SALES TEAM

INVESTMENT ADVISORS

BRANDON MICHAELSSenior Managing Director InvestmentsDirector, National Retail GroupTel: (818) 212-2794bmichaels@marcusmillichap.comLicense: CA #01434685www. BrandonMichaelsGroup.com

STEVEN SCHECHTERFirst Vice President InvestmentsDirector, National Retail GroupTel: (818) 212-2793steven.schechter@marcusmillichap.comLicense: CA #01089464www. BrandonMichaelsGroup.com

CONFIDENTIALITY AND DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified 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. Mar-cus & Millichap 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, PCB’s or asbestos, the compliance with 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 Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

NON-ENDORSEMENT NOTICE

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of provid-ing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

SPECIAL COVID-19 NOTICE All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making.)

16830 Ventura Blvd. Suite 100, Encino, CA 91436www.marcusmillichap.com

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INVESTMENT ADVISORS

1 2 3 4The Offering Investment Highlights Tenant Overview Area Overview

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VICTORY BLVDVICTORY BLVD

CO

LDW

ATER

CA

NYO

N A

VE

CO

LDW

ATER

CA

NYO

N A

VE

GLEN LA63 “eco-conscious”

homes

4

VICTORY BLVDVICTORY BLVD

KITTRIDGE STKITTRIDGE ST

HAMLIN STHAMLIN ST

LAU

REL

CA

NYO

N B

LVD

LAU

REL

CA

NYO

N B

LVD

NOHO WESTNew mixed-use lifestyle

center at the current Macy’s site

McDonald’s Is The Largest Restaurant Chain In The world With Annual Revenues Exceeding $21 Billion

Excellent North Hollywood Location

McDonald’s Has Successfully Operated At This Location For Over 37 Years

Less Than Five Years Remaining On A Below Market Lease With No Additional Options

Investment Grade Credit

Stable and Secure Income Stream With Upside In Rents

Zero Landlord Management Responsibility

Situated in a QUALIFIED OPPORTUNITY ZONE

12919 VICTORY BLVD., NORTH HOLLYWOOD, CA 91606

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Property Address: 12919 Victory BoulevardNorth Hollywood, CA 91606

Price: $5,000,000

Cap Rate: 3.00%

Net Operating Income: $150,000

Building SF: 4,792 SF

Land SF: 31,031 SF

Year Built: 1953

Parking Spaces: 45 Spaces Available

Zoning: [Q]C1-1VL

Opportunity Zone: Yes

Property Type: Fee Simple

The Brandon Michaels Group of Marcus and Millichap is pleased to present for sale Mcdonald’s, ideally located just west of the NW signalized intersection of Victory Boulevard and Coldwater Canyon Avenue at 12919 Victory Boulevard in the high-growth sub-market of North Hollywood, CA. McDonald’s began as a tenant at this location on 6/1/1983, having successfully operating here for over 37 years. McDonald’s has an absolute NNN lease that is guaranteed by McDonald’s Corporation (NYSE: MCD) which expires on 1/14/2025 with no additional options. The subject property is 4,792 square feet situated on 31,031 square feet of land zoned [Q] C1-1VL within the boundaries of a Qualified Opportunity Zone. The site includes a pole sign along Victory Blvd that is 30-feet in height which provides excellent visibility both Westbound and Eastbound along Victory Boulevard as well as Northbound and Southbound along Coldwater Canyon Avenue. McDonald’s operates daily between the hours of 5:00 AM till 12:00 AM (midnight) and the site allows for ingress and egress from two access points along Victory Boulevard. Please note, this is a fee simple purchase of the land and structure (this is not a ground lease).

McDonald’s Corporation offers investment grade credit with a Standard & Poors A Rating and a Moody’s Rating of A2. McDonald’s is the world’s largest chain of hamburger and fast food restaurants, serving north of 68 million customers daily in 120 countries across more than 37,000 locations. Annual revenues exceed $21 billion with profits in excess of $6 billion. McDonald’s is the world’s second largest private employer with 1.9 million employees.

The subject property is centrally located in the growing and densely populated East San Fernando Valley neighborhood of North Hollywood, CA, approximately 3 miles from District NoHo, which will bring 1,500 housing units, retail, and office space to the Metro-owned parcels near the North Hollywood stop along Lankershim Boulevard, and only 1.9 miles from NoHo West, a project on the former Laurel Plaza site is slated to bring 642 apartments, as many as 60 dining and shopping options, a Trader Joe’s, gym, and movie theater to the old 25-acre Laurel Plaza site. This centralized East San Fernando Valley location is experiencing a tremendous gentrification and significant growth, as NoHo is quickly becoming a Southern California hot spot. The subject property sits just blocks west of the State Route 170 Hollywood Freeway and offers easy access. The site benefits from a dense immediate population, with over 40,000 people within one mile of the subject property, over 354,000 people within three miles, and over 728,000 people within five miles. The median home value within one mile is $691,095, and the overage income is north of $77,000 within one mile, north of $84,000 within three miles, and north $91,000 within five miles. Daily traffic counts exceed 48,000 vehicles per day.

Tenant: McDonald’s

Lease Guarantor: Corporate

Lease Term: 4+ Years

Lease Start Date: 06/01/1983

Lease Expiration Date: 01/14/2025

Options: None

PROPERTY INFORMATION

LEASE INFORMATION

INVESTMENT OVERVIEW

A well-located McDonald’s in the high-growth East San Fernando Valley sub-market of North Hollywood, CA offering a stable and secure income stream with rental upside

THE OFFERING

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MCDONALD’S IS THE WORLD’S LARGEST RESTAURANT CHAIN

• McDonald’s serves over 68 million customers daily in 120 countries• McDonald’s has over 37,000 locations Worldwide• Annual revenue exceeds $21 billion• Annual Net income exceeds $9 billion• Traded on the NYSE• Worlds second largest private employer with 1.7 million employees• Ranked 131st on the Fortune 500 of the largest US Corporations

STABLE AND SECURE INCOME STREAM WITH STRONG CORPORATE GUARANTEE AND UPSIDE IN RENTS

• NNN Lease expires 1/14/2025 with no additional options• Current rent is below market• Absolute NNN Lease require Zero Management Responsibilities• Rare opportunity to acquire a drive-thru restaurant site in East San

Fernando Valley

SIGNIFICANT DEVELOPMENT IN THE IMMEDIATE AREA

• North Hollywood is experiencing a tremendous gentrification and significant growth

• Close proximity to significant development• District NoHo will bring 1,500 housing units, retail, and office to the

immediate area• NoHo West will bring 642 apartments, dining and shopping options, a

Trader Joe’s, gym, and movie theater

EXCELLENT EAST SAN FERNANDO VALLEY LOCATION

• Prime North Hollywood location in the heart of one of Los Angeles densest sub-markets

• Located within the boundaries of a Qualified Opportunity Zone• Excellent Visibility and Frontage with two access points along Victory

Boulevard• High daily traffic counts north of 48,000 vehicles per day• Within 1-mile of the I-170 Freeway• Walk Score of 84/100, a very walkable area• National Retailers in Immediate Area Include CVS, Starbucks, Chipotle,

Burger King, Petco, UPS

STRONG IMMEDIATE DEMOGRAPHICS & POPULATION DENSITY

• Average household Income of $77,000 within 1-Mile Radius• Over 40,000 people within one mile and over 733,000 people within

five miles• Average income north of $77,000 within one mile • Median home value north of $691,000• Average age of 38.50 with an average household size of 3 people

INVESTMENT HIGHLIGHTS

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VICTORY BLVD

VICTORY BLVD

COLDWATER CANYON AVE

COLDWATER CANYON AVE

9

people employed by McDonald’s and its Franchisees

2.1 million

Locations in over 100 countries

10

TENANT OVERVIEWCompany Name: McDonald’s

Type: Public

Traded As:

NYSE: MCDDJIA componentS&P 100 componentS&P 500 componentTYO: 2702BMV: MCD

ISIN US5801351017

Industry Restaurants

Genre Fast food restaurant

Founded May 15, 1940; 80 years ago in San Bernardino, California

Founders Richard and Maurice McDonald

Headquarters Chicago, Illinois, U.S.

Number of locations 37,855 restaurants (2018)

Area served Worldwide

Key people Enrique Hernandez Jr. (Chairman)Chris Kempczinski (president and CEO)

Revenue US$21.076 billion (2019)

Operating income US$9.070 billion (2019)

Net income US$6.025 billion (2019)

Total assets US$32.811 billion (2018)

Total equity US$−6.258 billion (2018)

Number of employees ~ 210,000 (2018)

Website www.mcdonalds.comcorporate.mcdonalds.com

MCDONALD’S COMPANY PROFILE

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McDonald’s is the world’s largest chain of hamburger fast food restaurants, serving approximately 69 million customers daily in 119 countries across more than 36,000 outlets. Founded in San Bernardino, California in 1940, the company began as a barbecue restaurant operated by Richard and Maurice McDonald. McDonald’s is publicly traded (NYSE: MCD) with an S&P “A” investment grade credit rating and a market cap of over $100 billion.

Headquartered in Oak Brook, Illinois, the company is one of the world’s largest private employers, employing more than 1.9 million people.

A McDonald’s restaurant is operated by either a franchisee, an affiliate, or the corporation itself. The McDonald’s Corporation revenues come from the rent, royalties, and fees paid by the franchisees, as well as sales in company-operated restaurants. While a global brand, the vast majority of McDonald’s – more than 80% worldwide and nearly 90% in the U.S. – are owned and operated by independent, small-and-mid-sized businessmen and women. Franchisees often live in the communities they serve and are committed to making a positive impact locally from providing good food, customer service and job opportunities, to supporting local charities and other ways of giving back.

Since 2003, McDonald’s has experienced a dramatic turnaround in an effort to keep up with rapidly changing consumer preferences, demographics and spending patterns. In the U.S., McDonald’s has focused on increasing sales, expanding menu options and extending store hours. Internationally, McDonald’s expanded aggressively, opting to franchise rather than operate its new locations, providing new income with little overhead. McDonald’s has consistently introduced new items (Premium Chicken sandwiches and the Angus Beef Burger) and campaigns to create more healthy foods (Premium Salads).

MCDONALD’S CORPORATION

Exchange: NYSE (US Dollar)

Price: $186.90

Change (%): +0.18%

Volume: 1,926,703

Market Cap: $138.971 B

MCD (COMMON STOCK) TABLE

As of June 22, 2020

TENANT OVERVIEW

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Restaurants worldwide

37K+• 2020 #36 Global 500 (100) Brands

- Brand Finance

• 2020 # 7 Top 100 Most Valuable US Brand

- BrandZ

• 2020 #3 Top 75 Global Retail Brands - BrandZ

• 2019 #9 Best Global Brands

- Interbrand

• 2019 #3 Top 75 Global Retail Brands

- BrandZ

• Ranked #3 among all companies for “Management Quality” - Fortune

• Ranked #7 among all companies for “Global Competitiveness” - Fortune

AWARDS AND RECOGNITIONS

of restaurants are franchised>80%

Representative PhotoRepresentative Photo 13

NORTH HOLLYWOOD, LOS ANEGELES

AREA OVERVIEWNorth Hollywood is a neighborhood in the east San Fernando Valley region of the city of Los Angeles. It is home to the NoHo Arts District and the Academy of Television Arts & Sciences, and it has seven public and eight private schools. There is a municipal park and a recreation center. The neighborhood is an important transportation center for the region. North Hollywood is not contiguous with Hollywood, being separated by other parts of the San Fernando Valley and the Hollywood Hills.

North Hollywood is home to the Academy of Television Arts & Sciences. Pierce Brothers Valhalla Memorial Park is located in the area, and includes the Portal of the Folded Wings Shrine to Aviation. Universal Studios is also located on the border between Hollywood and North Hollywood, easily accessible through one of NoHo's main streets, Lankershim Boulevard. Universal Studios has several attractions inside the actual park and in the non-paid CityWalk section. North Hollywood has several art houses, restaurants and theaters as well.

BURBANK: 5 MILES UNIVERSAL CITY: 5 MILES VAN NUYS: 5 MILES HOLLYWOOD: 9 MILES

DISTANCE TO:

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POINTS OF INTEREST

• NoHo Arts DistrictThe NoHo Arts District is a community in North Hollywood, Los Angeles, California, that is home to contemporary theaters, art galleries, cafes, and shops. The district also features the largest concentration of music recording venues west of the Mississippi. A Metro Rail station is located here, the North Hollywood station of the Red Line, and serves as the terminus of the Metro Orange Line busway.

• Academy of Television Arts & SciencesThe Academy of Television Arts & Sciences (ATAS), also colloquially known as the Television Academy, is a professional honorary organization dedicated to the advancement of the television industry in the United States. Founded in 1946, the organization presents the Primetime Emmy Awards, an annual ceremony honoring achievement in U.S. primetime television.

• The Great Wall of Los AngelesThe Great Wall of Los Angeles is a mural designed by Judith Baca and executed with the help of over 400 community youth and artists coordinated by the Social and Public Art Resource Center (SPARC). It was Baca's first mural and SPARC's first public art project. Its official title is The History of California. It was listed on the National Register of Historic Places in 2017.

• Universal StudioUniversal Studios Hollywood is a film studio and theme park in the San Fernando Valley area of Los Angeles County, California. It is one of the oldest and most famous Hollywood film studios still in use. Its official marketing headline is "The Entertainment Capital of LA". It was initially created to offer tours of the real Universal Studios sets and is the first of many full-fledged Universal Studios Theme Parks located across the world.

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NORTH HOLLYWOOD METRO STATION DEVELOPMENT

AREA OVERVIEW

The wheels are in motion to dramatically alter the look of a group of Metro-owned parcels near the North Hollywood stop, which serves the subway’s Red Line and the bus-rapid transit Orange Line. Metro is working with Trammell Crow Company to bring 1,500 housing units, retail, and office space to the transportation hub. The development, called District NoHo, is slated to be built in phases starting in 2021.

The developers would extend existing streets into the complex and create parking for more than 4,000 cars, including at least 900 spaces for drivers getting on Metro lines. About 28,500 weekday travelers come into or leave North Hollywood on Metro now, but the total is expected to increase as people move into District NoHo.

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NOHO WEST

A project on the former Laurel Plaza site is slated to bring 642 apartments, as many as 60 dining and shopping options, a Trader Joe’s, gym, and movie theater to the old 25-acre Laurel Plaza site.

Construction on the big revamp is well underway. Work began in April 2017, and the Los Angeles Daily News reports that the commercial and shopping portion of the project—developed by Merlone Geier Partners—should be open by the summer. The residential component will be built by Trammell Crow Residential and Barings Real Estate as a later phase of the project, says the News.

Construction kicked off in 2017 on the NoHo West development, which will bring 642 apartments, between 50 and 60 dining and shopping options, a grocery store, gym, and movie theater to the area.

Developed by Merlone Geier Partners and GPI Companies, the somewhat Grove-like project will consist of several buildings centered around a main thoroughfare with numerous pedestrian plazas scattered through the site.

The former Macy’s at the heart of the 25-acre property will be converted into large-format office space. The developers say they want to attract four to ten tenants to the office portion of the project.

As Urbanize LA notes, the project is being designed by Stir Architecture. According to the firm, the development will include more than 2 acres of open space, including a communal area for public events and a “potential dog park and playgrounds.”

6150 Laurel Canyon BlvdNorth Hollywood, CA 91606

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DEMOGRAPHICS

Total Population of North Hollywood.

MALE FEMALE

85,009

49%51%EDUCATION

The Median Age is 36.3.

36.3

High School Graduate

20%Master’s Degree or Higher

7%Bachelor’s Degree24%

Some College or Associates Degree28%

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95,806Owner Occupied Households

within 5-m radius

152,036Renter Occupied Households

within 5-m radius

34,280Businesses within a 5-m radius

$91,541Average HH income within

5-m radius

$64,681Median HH income within

5-m radius

728,666Daytime Population within

5-m radius

1 MILE 3 MILES 5 MILES

2020 Population 40,844 354,404 728,666

2020 Households 13,500 124,037 247,843

2020 Average Household Size 3.00 2.80 2.90

2020 Median Household Income $55,836 $59,524 $64,681

2020 Average Household Income $77,886 $84,952 $91,541

2020 Owner Occupied Households 4,744 41,920 95,806

2020 Renter Occupied Households 8,756 82,117 152,036

<$25,000 3,378 26,473 48,518

$25,000 - $50,000 2,815 26,468 50,483

$50,000 - $75,000 2,387 21,621 41,590

$75,000 - $100,000 1,533 14,195 29,757

$100,000 - $125,000 1,127 11,372 22,764

$125,000 - $150,000 689 6,370 13,777

$150,000 - $200,000 673 7,376 16,460

$200,000+ 900 10,161 24,494

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G R O U P

BRANDON MICHAELS

Situated in a QUALIFIED OPPORTUNITY ZONE

12919 VICTORY BLVD., NORTH HOLLYWOOD, CA 91606

BRANDON MICHAELSFirst Vice President InvestmentsDirector, National Retail GroupTel: (818) 212-2794bmichaels@marcusmillichap.comLicense: CA #01434685

STEVEN SCHECHTERFirst Vice President InvestmentsDirector, National Retail GroupTel: (818) 212-2793steven.schechter@marcusmillichap.comLicense: CA #01089464