HARDEE’S | 1

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Hardee’s701 W HAMLET AVE | HAMLET, NC

O F F E R I N G M E M O R A N D U M

REPRESENTATIVE PHOTO

2 | OFFERING MEMORANDUM

03

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09

EXECUTIVE SUMMARY

FINANCIAL OVERVIEW

AREA OVERVIEW

TENANT OVERVIEW

CONTENTS

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PROPERTY OVERVIEW07

Andrew IvankovichAssociate

Andrew. Ivankovich@matthews.comDIR (214) 692-2037MOB (626) 807-3586LIC # 678815 (TX)

KYLE MATTHEWS

BROKER OF RECORDLIC # C27092 (NC)

LISTED BYBraden CrockettAVP & Director

Braden.Crockett@matthews.comDIR (214) 692-2040MOB (714) 345-6206LIC # 01946071 (CA)

REPRESENTATIVE PHOTO

• Absolute NNN – Zero Landlord Responsibilities

• Incredibly Secure Investment – Lease Guaranteed By Corporate (Carl Karcher Enterprises, Inc.)

• Long-Term Lease – 14.5 Years Remaining On An Original 20-Year Lease

• 10% Rental Increases Every 5 Years

• Hardee’s Located on Signalized Corner That Sees 33,000 Vehicles Per Day

• Corporate Hardee’s Renovated The Site in 2012

• Hardee’s Offers A Landlord

• Strong E-Commerce Proof Tenants

• Ideally Situated In The Center of Town with Relatively Little Competition (Burger King and Dairy Queen)

• Charlotte-Raleigh-Wilmington Is One of Hardee’s Top Performing MSAs

• Hardee’s and Carl’s Jr. (CKE) Are Two of the Nation’s Highest Grossing Quick Service Restaurants

INVESTMENT HIGHLIGHTS

E X E C U T I V E OV E R V I E W

HARDEE’S | 3

Property Name Hardee’s

Property Address701 W Hamlet

Hamlet, NC 28345

Gross Leasable Area ± 3,610 SF

Year Built/Renovated 1981/2012

EXECUTIVE SUMMARY

F I N A N C I A L OV E R V I E W

FINANCIAL HIGHLIGHTS

LIST PRICE

$2,072,342.61

CAP RATE

5.75%

TERM REMAINING

±14.5 Years

4 | OFFERING MEMORANDUM

TENANT SUMMARY

Tenant Trade Name Hardee’s

Type of Ownership Fee Simple

Lease Guarantor Corporate

Lease Type NNN

Roof & Structure Tenant Responsible

Original Lease Term 20 Years

Rent Commencement Date 10/1/2012

Lease Expiration Date 9/30/2032

Increases 10% Every 5 Years

Options 4, 5-Year Options

ANNUALIZED OPERATING DATA

Monthly Rent Rent/SF Cap RateYear 6-10 $119,159.70 $33.01 5.75%

Year 11-15 $131,075.67 $36.31 6.32%

Year 16-20 $144,183.24 $39.94 6.96%

HARDEE’S | 5

T E N A N TOV E R V I E W

As a subsidiary of fast-food giant CKE Restaurants, Hardee’s Food Systems is a leading fast-food chain operator with more than 1,900 locations in some 30 states, primarily in the Midwest and Southeast. The chain offers a variety of premium-priced Angus beef hamburgers under such names as Thickburger, Six Dollar Burger, and the Monster Thickburger. Hardee’s also serves up chicken sandwiches, salads, fries, and beverages, as well as dessert items. About 475 of the restaurants are operated by the company, while the rest are franchised.

GEOGRAPHIC OUTREACHSince the opening of the first restaurant in Greenville, North Carolina in 1960, Hardee’s has established a strong presence throughout the Midwest and Southeast. Most locations are in the United States, distributed among some 30 states.

STRATEGYThe company’s Hardee’s chain has started to incorporate its own dual branding strategy, pairing some of its locations with Red Burrito outlets. Plans to continue expansion in international markets are underway and involve the use of franchise development agreements. CKE is targeting growth in Brazil, Canada, China, and Russia. In 2014 Carl’s Jr. announced plans to expand in Ontario, Canada’s “Golden Horseshoe,” a territory that includes Toronto, Mississauga, Oakville, Burlington, Hamilton, Brantford and London. Hardee’s chains market themselves as gourmet burger outlets with slightly higher menu prices. In lieu of rapid expansion, CKE has focused on managing costs and investing in additional marketing efforts to drive traffic to its restaurants. Its chains target primarily a young, male demographic with oversized burgers made with premium Angus beef.

Hardee’s

P A R E N T C O M P A N Y T R A D E N A M E C K E R E S T A U R A N T S

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T E N A N T OV E R V I E W

6 | OFFERING MEMORANDUM

HARDEE’S | 7

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TENANT SUMMARY

Property Address 701 W Hamlet Hamlet, NC 28345

SITE DESCRIPTIONNumber of Stories One

Type of Ownership Fee Simple

Year Built/Renovated 1981/2012

GLA ± 3,610 SF

Lot Size ± 1.12 Acres (48,805 SF)

Parking ± 52 Surface Spaces

Parking Ratio 14.40 : 1,000 SF

Landscaping Professional

Topography Generally Level

THE OFFERING

Oceanside Blvd ± 31,792

THE PARCEL

P R O P E R T Y OV E R V I E W

MALBORO ST ± 12,000 VPD

KING ST ± 9,000 VPD

HAM

LET AVE ± 12,000 VPD

8 | OFFERING MEMORANDUM

SURROUNDING TENANTS

± 80 miles to Charlotte, NC ± 100 miles to Raleigh, NC

HAMLET, NC

A R E A OV E R V I E W

Charlotte is the largest city in North Carolina and the second largest Banking Center in the country. It is known for being a world-class city through a variety of art, science, and historical attractions, all while retaining its small-town charm. Referred to as the Queen City, Charlotte is the home of NASCAR and the Charlotte Motor Speedway. 90 percent of the NASCAR Sprint Cup Series teams are headquartered within 50 miles of Charlotte.

The quality of life enjoyed by residents of Metropolitan Charlotte is an important factor in the tremendous growth of the city and surrounding rural acreage. An undisputed hub for entertainment and culture, the city draws regional audiences to performances and events at the North Carolina Blumenthal Performing Arts Center and other venues.

Recreational opportunities are abundant from Atlantic Ocean water and whitewater rafting at the U.S. National Whitewater Center to roller coasters at Carowinds and hiking in one of the many surrounding national parks and reserves.

CHARLOTTE, NC

HARDEE’S | 9

10 | OFFERING MEMORANDUM

Charlotte has become a major U.S. financial center with the third most banking assets after New York City and San Francisco. The nation’s second largest financial institution by total assets, Bank of America, calls the city home. Charlotte has become the regional headquarters for East Coast operations of Wells Fargo, which is headquartered in San Francisco, California. Charlotte also serves as the headquarters for Wells Fargo’s capital markets activities including sales and trading, equity research, and investment banking. Bank of America’s headquarters, along with other regional banking and financial services companies, are located primarily in the Uptown central business district. Microsoft’s East Coast headquarters are in Charlotte as well.

Charlotte has six Fortune 500 companies in its metropolitan area. Listed in order of their rank, they are Bank of America, Lowe’s in suburban Mooresville, Duke Energy, Nucor (steel producer), Sonic Automotive and Sealed Air Corp. The Charlotte area includes a diverse range of businesses, such as Chiquita Brands International, Harris Teeter, Snyder’s-Lance, Carolina Foods Inc, Bojangles’, Food Lion, Compass Group USA, and Coca-Cola Bottling Co. Consolidated (Charlotte being the nation’s second-largest Coca-Cola bottler); motor and transportation companies such as RSC Brands, Continental Tire the Americas, LLC., Meineke Car Care Centers, Carlisle Companies (along with several other services), along with a wide array of other businesses.

ECONOMY

POPULATION 3 Mile 5 Mile 7 Mile

2010 Census 12,182 25,632 36,032

2018 Estimate 11,694 24,467 34,323

2023 Projection 11,691 24,397 34,188

HOUSEHOLDS 3 Mile 5 Mile 7 Mile

2010 Census 4,964 10,398 14,549

2018 Estimate 4,794 10,000 13,983

2023 Projection 4,806 10,005 13,982

INCOME 3 Mile 5 Mile 7 Mile

2018 Est. Average Household Income

$46,255.82 $47,023.20 $48,135.15

DEMOGRAPHICS

HARDEE’S | 11

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Hardee’s located at 701 W Hamlet Ave, Hamlet, NC 28345 (“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 or manner 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

EXCLUSIVELY LISTED BY™

Hardee’s701 W HAMLET AVE | HAMLET, NC

O F F E R I N G M E M O R A N D U M

Andrew IvankovichAssociateAndrew. Ivankovich@matthews.comDIR (214) 692-2037MOB (626) 807-3586LIC # 678815 (TX)

KYLE MATTHEWSBROKER OF RECORDLIC # C27092 (NC)

Braden CrockettAVP & DirectorBraden.Crockett@matthews.comDIR (214) 692-2040MOB (714) 345-6206LIC # 01946071 (CA)