POPEYESPOST FALLS, ID

SUBJECT PROPERTY

POPEYES

6.00%CAP

$2,750,000PRICE

767 N NEUFELD LANE, POST FALLS, ID 83854

20-year lease with 10% rental increases every five years

Located off Interstate 90 benefiting from 56,000+ VPD

Average household incomes within a 5-mile radius over $63k

30 minutes from Spokane International Airport

Strong personal guaranty and unit level volumes (Speak with Agent)

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. Buyer must verify the information and bears all risk for any inaccuracies.

LEASABLE SF3,149 SF

LEASE EXPIRATION2037

LEASE TYPEAbsolute NNN

LAND AREA1.26 Acres

YEAR BUILT2017

PARKING21 SPACES

SUBJECT PROPERTY

2

Overview

THE OFFERING is a sale/leaseback Popeyes in Post Falls, Idaho, which is located between Spokane and Coeur d’Alene. Post Falls is one of the fastest growing cities in Idaho and part of a CSA with a population of over 710,000. The property is accessible off Interstate 90, which connects Idaho & Washington and has 56,000+ VPD.

At closing, the tenant will execute a 20-year absolute net lease with 10% rental increases every 5 years providing a reliable long term income stream to the investor. The guarantor is an experienced multi-concept franchisee that has over 25 other restaurants under the Popeyes, Black Bear Diner, Sonic, and Twin Peaks flags. The lease includes a strong personal guarantee and a sales reporting provision providing for transparency and security to a new owner. Sales to date are strong.

Contact the team

2017 SYSTEM-WIDE SALES OF $888M

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. Buyer must verify the information and bears all risk for any inaccuracies.

JOHN ANDREINIjandreini@capitalpacific.comPH: 415.274.2715ID BRE# AB42816CA BRE# 01440360

THE RETAIL MARKET includes high quality retailers such as Walmart Supercenter, Starbucks, Verizon, AT&T, Sonic Drive-In, Del Taco, Wendy’s and many others.

SUBJECT PROPERTY

3

Investment Highlights

41

95

395

POPULATION: 556,000

SPOKANE MSAPOPULATION:

32,000

POST FALLS

POPULATION: 153,000

COEUR D’ ALENE MSA

90

90

90

95

195

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. Buyer must verify the information and bears all risk for any inaccuracies.

Zoomed-Out Aerial

4

56,000 VPD

90

90

90

41

41

N NE

UFEL

D LA

NE

N G

REENSFERRY RO

AD

N G

REEN

SFER

RY R

OA

DNORTHERN

IDAHO ADVANCED

CARE HOSPITAL

REHABILITATION HOSPITAL OF THE

NORTHWEST

H&R BLOCK

STATE OF

IDAHO

CITY OF POST FALLS

THE HIGHLANDS

GOLF COURSE

®

PONDEROSA ELEMENTARY

SPOKANE27 MILES

56,000 VPD

24,500 VPD

2,800 VPD

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. Buyer must verify the information and bears all risk for any inaccuracies.

5

Zoomed-In Aerial

6

Surrounding Retail

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. Buyer must verify the information and bears all risk for any inaccuracies.

PRICE $2,750,000

Price Per Square Foot: $873.29

Capitalization Rate: 6.00%

Total Rentable Area (SF): 3,149

Lot Size (AC): 1.26

STABILIZED INCOME PER SQUARE FOOTScheduled Rent $52.40 $165,000

Effective Gross Income $52.40 $165,000

LESS PER SQUARE FOOTTaxes NNN $0.00

Insurance NNN $0.00

Total Operating Expenses NNN $0.00

EQUALS NET OPERATING INCOME $165,000

SUBJECT PROPERTY

7

Income & Expense

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. Buyer must verify the information and bears all risk for any inaccuracies.

TENANT INFO LEASE TERMS RENT SUMMARY

TENANT NAME SQ. FT. CURRENT RENT

MONTHLY RENT

YEARLY RENT

Popeyes 3,149 1 5 $165,000 $13,750 $165,000

6 10 $15,125 $181,500

11 15 $16,638 $199,650

16 20 $18,301 $219,615

Option 1 21 25 $20,131 $241,577

Option 2 26 30 $22,145 $265,734

Option 3 31 35 $24,359 $292,308

Option 4 36 40 $26,795 $321,538

TOTALS: 3,149 $165,000 $13,750 $165,000

*20 year lease to commence at close of escrow.

8

Rent Roll

BASE RENT

DATE RANGE MONTHLY RENT ANNUAL RENT

1-5 $13,750 $165,0006-10 $15,125 $181,50011-15 $16,638 $199,65016-20 $18,301 $219,615

OPTION RENTS

DATE RANGE MONTHLY RENT ANNUAL RENT

#1. 21-25 $20,131 $241,577#2. 26-30 $22,145 $265,734#3. 31-35 $24,359 $292,308#4. 36-40 $26,795 $321,538

RENT

TENANT PopeyesBUILDING SF 3,149 SFLEASE TYPE Absolute NNNTERM 20 YearsRENT COMMENCEMENT Close of escrowEXPIRATION 20 years from close of escrowOPTIONS Four 5-year options

PREMISES& TERM

TAXESTenant is responsible for the direct payment of property taxes.

INSURANCETenant shall maintain, at Tenant’s sole cost and expense, all-risk (special form) commercial property insurance with limits sufficient to replace one hundred percent (100%) of the Premises and commercial general liability with a combined single limit of not less than $5,000,000.

UTILITIESTenant is responsible for direct payment of all utilities to appropriate billing authority.

TENANT’S OBLIGATIONSTenant is responsible for all maintenance and repair to the entirety of the Premises, including all interior and exterior, structural, and nonstructural repairs and replacement.

LANDLORD’S OBLIGATIONSZero Landlord maintenance or management responsibilities.

ASSIGNMENT/SUBLETTINGTenant shall have the right to assign, transfer, or sublease their interest in the premises with the prior written consent of Landlord. However, no such assignment or transfer shall relieve Tenant of Tenant’s liability or obligations under the terms of the Lease.

EXPENSES

LEASEPROVISIONS

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. Buyer must verify the information and bears all risk for any inaccuracies.

9

Lease Abstract

N NEUFELD LANE

N NEUFELD LANE

E MULLAN AVENUE

HIG

HW

AY 4

1

HIG

HW

AY 41

41

90

41

56,000 VPD

12,110 VPD

24,500 VPD

Site Plan

10This site plan is a rendering that has been created based on sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

21SPACES

3,149RENTABLE SF

1.26ACRES

V

Founded in New Orleans in 1972, Popeyes has more than 40 years of history and culinary tradition. Popeyes distinguishes itself with a unique New Orleans style menu featuring spicy chicken, chicken tenders, fried shrimp, and other regional items. Popeyes is one of the world’s largest quick service restaurant chicken concepts with over 2,700 restaurants globally.

On February 21, 2017, Restaurant Brands International, the parent of Burger King and the Tim Hortons doughnut and coffee chain, announced the acquisition of Popeyes Louisiana Kitchen for $1.8 Billion. Popeye’s had a 2016 domestic revenue of nearly $269 million and a net income of nearly $43 million. Over the last 2 years, their compounded sales growth rate has been over 20%.

ABOUT POPEYES

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. Buyer must verify the information and bears all risk for any inaccuracies.

SUBJECT PROPERTY

The tenant operates over 25 restaurants including 10 Black Bear Diners, 14 Popeyes, a Sonic, and a Twin Peaks restaurant. They will execute a personal guaranty at closing, which will be cross-collateralized with the above-mentioned operating assets. This diversification of the sponsor guaranty across national brands provides an investor with a more stable and reliable income stream.

ABOUT GUARANTOR/OPERATOR

11

Tenant Overview

POPULATION

1-MILE 3-MILES 5-MILES

2010 6,576 28,479 59,872

2017 7,118 33,158 70,250

2022 7,752 36,340 77,700

2017 HH INCOME

1-MILE 3-MILES 5-MILES

Average $68,914 $65,298 $63,434

Median $53,279 $51,532 $49,726

KOOTENAI COUNTY TOP EMPLOYERS

EMPLOYER

Kootenai Medical Center

Coeur d’Alene Resort

Coeur d’Alene Casino

North Idaho College

U.S. Bank Customer Service Center

POST FALLSSPOKANE (29 MINS 27 MILES)

THE AVERAGE HOUSEHOLD INCOME WITHIN A 1-MILE RADIUS

IS OVER $68K

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. Buyer must verify the information and bears all risk for any inaccuracies.

Demographics

COEUR D’ALENE(12 MINS 7 MILES)

POST FALLS, IDAHO

POST FALLS is located four miles east of the Washington-Idaho border along Interstate 90 in Kootenai County, Idaho. It is bounded by Coeur d’Alene, Idaho to the east, and Spokane, Washington to the west - with a combined metro area population of over 710,000. As the 10th largest city in Idaho, Post Falls is ranked #1 for population growth with a current population of 32,000+.

Due to the proximity of numerous lakes, rivers, and mountains and recreational opportunities, the tourism and retail sectors of the economy are growing with an increasing number of retail, dining, and entertainment businesses located in the city. Additionally, Post Falls has a growing medical and healthcare community.

KOOTENAI COUNTY has experienced exceptional population growth since the 1970s. Over the past 25 years, the local economy grew at an astounding rate on a diversifying manufacturing base and

expanded tourism. Idahoans and out-of-state visitors flock to Coeur d’Alene year round to enjoy its lakes, trails, and resorts. Supporting the area’s resorts, the local tourism industry employs more than 10,000 people in northern Idaho, and tourism accounted for 6.8 percent of the region’s overall payroll in 2010. By 2020, it is estimated that the region’s tourism industry will create an additional 1,560 jobs.

KOOTENAI COUNTY

710,000

SPOKANE-COEUR D’ALENE CSA POPULATION (ESTIMATED)

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. Buyer must verify the information and bears all risk for any inaccuracies.

SPOKANE, WASHINGTON

13

Location Overview

We’d love to hear from you.

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. Buyer must verify the information and bears all risk for any inaccuracies.

JOHN ANDREINIjandreini@capitalpacific.comPH: 415.274.2715ID BRE# AB42816CA BRE# 01440360

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SUBJECT PROPERTY