Red Lobster - 5010 East 2nd Street, Casper, WY 82609 · •Red Lobster is the largest seafood restaurant concept in the world and is an iconic full service brand with broad demographic

OFFERING MEMORANDUME X C L U S I V E N E T – L E A S E O F F E R I N G

Red Lobster5010 East 2nd Street

Casper, Wyoming 82609

Representative Photo

Table of Contents

Investment OverviewInvestment HighlightsFinancial OverviewLease SummaryTenant OverviewPrivate Equity Sponsor

Property OverviewLocation OverviewSurrounding Area MapLocal MapRegional Map

DemographicsPopulation IncomeEmployment

PROPERTY DESCRIPTIONProperty Red Lobster

Property Address 5010 East 2nd Street

City, State, ZIP Casper, WY 82609

Building Size (SF) 5,862

Lot Size (Acres) +/- 1.67

THE OFFERINGNet Operating Income $252,950

CAP Rate 6.00%

Purchase Price $4,215,825

Price / SF $719

Year Opened 2011

LEASE SUMMARYProperty Name Red Lobster

Property Type Net Leased Casual Dining

Ownership Private

Tenant Red Lobster Restaurants, LLC

Guarantor Red Lobster Intermediate Holdings, LLC

Lease Term 25 Years

Lease Expiration July 31, 2039

Lease Term Remaining 21 Years

Lease Type Triple-Net (NNN) Lease

Roof & Structure Tenant Responsible

Rental Increases 2.00% Annually

Options to Renew Four (4), Five (5) Year Option Periods

Rental Increases in Options 2.00% Annually

5010 East 2nd Street, Casper, Wyoming 82609

3This 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 informationand bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is aservice mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap

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FINANCIAL OVERVIEW

HIGHLIGHTS

➢ Property is Subject to a 25 Year Triple-Net (NNN) Lease With 21 Years Remaining

➢ Corporate Guaranty | 704 Locations in the US & Canada

➢ Strong Inflation Hedge | Attractive 2.0% Annual Increases

➢ Four (4), Five (5)-Year Tenant Renewal Options

➢ World’s Largest Seafood Restaurant | Serving Customers in 11 Countries

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 orage are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not representthe current or future performance of the property. Marcus &Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus &Millichap

PRICE: $4,215,825 | 6.00%CAP | RENT: $252,950

ANNUALIZED OPERATING DATA

Current Annual Rent $252,950

Base Term Rental Escalations 2.00% Annually


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FINANCIAL OVERVIEWINVESTMENT SUMMARY

Marcus & Millichap is pleased to present the exclusive listing for a RedLobster property located in Casper, Wyoming. The property consists of5,862 square feet of building space and is situated on approximately 1.67acres of land. The property is subject to a 25-year Triple-Net (NNN) leasewith 21 years remaining on the base term. The current rent is $252,950 andwill continue to increase by 2.00% annually. The increases will continuethrough the four, five-year tenant renewal options.

TENANT SUMMARY

Red Lobster is the largest seafood restaurant concept in the world and is aniconic full service brand with broad demographic appeal and significantadvertising budget. Red Lobster is led by an experienced management teamwith a history of success leading the brand(average 27+ years experienceacross executive team). The company generates $2.5 billion in revenue andis the 5th largest casual dining concept in North America. Red Lobster wasrecently acquired by Golden Gate Capital.


RENT SCHEDULELease Year Annual Rent Monthly Rent

Year 5 $252,950 $21,079

Year 6 $258,008 $21,501

Year 7 $263,169 $21,931

Year 8 $268,432 $22,369

Year 9 $273,801 $22,817

Year 10 $279,277 $23,273

Year 11 $284,862 $23,739

Year 12 $290,559 $24,213

Year 13 $296,371 $24,698

Year 14 $302,298 $25,192

Year 15 $308,344 $25,695

Year 16 $314,511 $26,209

Year 17 $320,801 $26,733

Year 18 $327,217 $27,268

Year 19 $333,761 $27,813

Year 20 $340,437 $28,370

Year 21 $347,245 $28,937

Year 22 $354,190 $29,516

Year 23 $361,274 $30,106

Year 24 $368,500 $30,708

Year 25 $375,870 $31,322

CAP Rate 6.00%

Purchase Price $4,215,825

Tenant Overview


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EXECUTIVE SUMMARY


• Red Lobster is the largest seafood restaurant concept in theworld and is an iconic full service brand with broaddemographic appeal and a significant advertising budget (2nd

largest in casual dining).

• The Company was founded in 1968 and currently operates704 restaurants throughout the United States and Canadaand has 43 franchised restaurants in international markets.

• Red Lobster is led by an experienced management team witha history of success leading the brand (average 27+ yearsexperience across executive team).

• The company generates $2.5B in revenue and is the 6th

largest casual dining concept in North America.

• On July 28th, 2014, Golden Gate Capital (“GGC”) acquiredRed Lobster from Darden Restaurants.

• Red Lobster is now an independently owned company,completely separate from Darden Restaurants.

• Red Lobster is well capitalized with >$200M of liquidity.

• Golden Gate Capital has a long, successful track record andsignificant experience with multi-unit restaurant and retailbusinesses.

The Transaction


6This 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 orage are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not representthe current or future performance of the property. Marcus &Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus &Millichap

EXECUTIVE SUMMARYTENANT OVERVIEW

OUR HISTORY

FRESH IS IN OUR FOOD

Each day, you’ll find an updated selection of fresh fish onour Today’s Fresh Fish menu, not to mention live Mainelobster, freshly baked Cheddar Bay Biscuits™, crisp saladsand a host of fresh seafood recipes waiting to beexplored.

FRESH IS IN OUR KNOWLEDGE

No one knows seafood better than we do. As globalseafood buyers, we have employees stationedthroughout the world who inspect our seafood themoment it comes out of the water. They ensure it meetsstandards that are second to none. Then, the renownedchefs at our culinary center deliver the fresh expertisethat turns it all into something truly special.

FRESH IS IN OUR DEDICATION

We hold ourselves to the highest standards for service,quality and a welcoming atmosphere. And we’re focusedon doing what’s right – for our employees, in ourcommunities and in the world.

FRESH IS IN OUR COMMITMENT

You deserve the freshest food and thinking. So every timeyou visit one of our seafood restaurants or our onlineseafood store, you’ll find an uncommon commitment todeliver the best of the sea with fresh energy and freshideas that we hope will make you want to come backagain and again.

We invite you to come in and experience our commitment to quality for yourself. Whether it’s choosing your favorite fresh fish from our “Today’s

Fresh Fish” menu, or selecting your favorite seafood to be prepared over our wood-fired grill, Red Lobster is the place you can enjoy fresh, delicious

seafood now and for generations.


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EXECUTIVE SUMMARY


1968

Bill Darden opens the first Red Lobster in Lakeland, Florida1970

General Mills acquires Red Lobster and rapidly expands nationally 1983

Our 1st Canadian restaurant opens in Ontario1984

Out Lobsterfest® promotion begins, giving guests the best variety of lobster anywhere 1988

We introduce our famous and delicious Cheddar Bay Biscuits®1989

We operate 450 US and 55 Canadian restaurants 1996

We introduce "Walt's Favorite Shrimp", named after one of our earliest employees2003

We celebrate our 35th anniversary of serving fresh, delicious seafood 2004

Endless Shrimp® is introduced, and becomes an annual guest-favorite promotion2006

"Today's Fresh Fish" gives guests a daily selection of national and local fresh fish favorites 2008

We introduce Wood-Fire Grills and Certified Grill Masters in every restaurant2013

We celebrate our 45th anniversary and operate more than 700 locations worldwide

2014

Acquisition by Golden Gate Capital (“GGC”)

RED LOBSTER

TIMELINE

~50% Share in Seafood Casual Dining


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• Red Lobster is the largest seafood restaurant concept in the world and the 6th largest casual dining concept in the United States with over $2.5 billion in annual sales and 704 restaurants.

• The Company is the category killer in the seafood casual dining space, holding almost 50% market share.

• Largest share of any restaurant concept in any segment.

• 6th largest overall casual dining concept in the US.

Strong Market Position Significant Scale With Broad Geographic Reach


EXECUTIVE SUMMARY

6th Largest Casual Dining Concept in the US

TENANT OVERVIEW

TENANT OVERVIEW


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Indispensability vs. Peers

Indispensability (How difficult it would be for me to ‘give up’ ever going there again ) - % very difficult (10 out of 10) shown

AfterBefore

New Bar Harbor Format


Iconic Brand With Unparalleled Customer

Loyalty

• Red Lobster has strong consumer appeal and broad usage across multiple dining out occasions, including high-crave, healthier “good for you” and special meal occasions.

• The brand has a strong foundation of loyal guests, who visit 1-2 times per month and account for more than 50% of sales.

• Red Lobster is the clear leader in casual dining seafood, and the most indispensable brand among major casual dining concepts, further indicating strong consumer loyalty.

Healthy and Recently Remodeled Restaurant

Base

• Over $320 million invested in remodels covering >90% of restaurants over the past 8 years.

• $1.4 billion in overall capital expenditure investment over the past 10 years.

• New Bar Harbor format has strong appeal across customer base.

• 100% of restaurants are cash flow positive.

EXECUTIVE SUMMARY

Management Team


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Kim LopdrupCEO

(30 years in Restaurant Industry)

Salli SettaPresident


Bill LambertCFO


• Salli was named President of Red Lobster in July of 2013

•Prior to her promotion to President, Salli served as Red Lobster’s EVP of Marketing, before which she held numerous roles in Marketing and Culinary at Olive Garden during its turnaround, including VP Marketing and SVP Culinary and Beverage

•24 years of experience in restaurant marketing, advertising and menu development; named “Menu Strategist of the Year” in 2003; recipient of three Menu Masters’ Awards and a Silver Effie for her work on the “Hospitaliano” ad campaign

•BA, University of Central Florida; MBA, Florida Institute of Technology

•Bill served as CFO of Red Lobster from FY2006 to FY2010

•Prior to his return to Red Lobster, Bill served as CFO of LongHorn Steakhouse

•Prior to joining Darden and Red Lobster, Bill spent 21 years with Federated Department Stores in various roles including CFO of Macy’s Central

•BS, Duke University; MBA, University of Michigan

Chip WadeEVP

Operations(29 years in Restaurant

Industry)

•Darryl “Chip” Wade is EVP of Operations at Red Lobster

•Previously, Chip held positions in Enterprise Operations at Darden and as SVP of its Smokey Bones brand

•Outside of Darden, Chip previously served as COO of Legal Sea Foods and in various operations management roles at TGI Friday’s

•BA, Widener University; MBA, University of Texas

•Kim served as President of Red Lobster from FY2005 to FY2011, a period of consistent, above-market growth for the brand

•Prior to his return to Red Lobster, Kim served as President of Specialty Restaurant Group and New Business

•Before joining Darden, Kim served as EVP and COO of North America for Burger King, and at Dunkin’ Brands as VP of Marketing and CEO of its international division

•BBA, College of William & Mary; MBA with distinction, Harvard Business School

Red Lobster is led by an experienced management team with prior success leading the brand.


EXECUTIVE SUMMARY


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• Golden Gate Capital (GGC) is a San Francisco-based Private Equity firm with over $15 billion of capital undermanagement.

• GGC has been one of the most active acquirers of multi-unit restaurant and retail companies.• Over the past 10 years, GGC has invested in restaurant and retail companies with annual revenues in excess of

$15 billion.• GGC’s investors include leading educational endowments, non-profit foundations, and selected entrepreneurs and

managers.• Investment approach is to partner with strong management teams to acquire strong, established brands with an

opportunity to grow earnings through better execution, productivity improvements and unit growth.• Excellent track record with acquiring and growing divisions of corporations.


Select Restaurant Investments

EXECUTIVE SUMMARY

Restaurant Private Equity Investments

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AERIAL5010 East 2nd Street, Casper, Wyoming

12This 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 orage are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not representthe current or future performance of the property. Marcus &Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus &Millichap

EAST 2nd STREET

HIGHLIGHTS

➢ Major National Tenants In Surrounding Area Include: Walmart, The Home Depot, Sam’s Club, Walgreens, Target, Sears, Macy’s, and Kohl’s

➢ Strong Surrounding Traffic Counts | Southeast Wyoming Boulevard and U.S. Interstate-25 | 17,983 and 16,643 Daily Vehicles Respectfully

➢ Casper | Second-Largest City in Wyoming

➢ National Historic Trails Interpretive Center | Five Miles from Subject Property

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LOCATION OVERVIEW

Casper, WYThis 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 orage are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not representthe current or future performance of the property. Marcus &Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus &Millichap

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES *

Butte Pipe Line Company 1,400

Wyoming Medical Center 1,026

State of Wyoming 891

Knife River Corporation 654

Department of Employment 500

Walmart 400

Casper Community College Dst 325

Safariland LLC 322

Sinclair Companies 308

Casper Outpatient Clinic 264

Johnny JS Diner 250

Natrona County School Dst 1 200

ADTC 15,280

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LOCATION OVERVIEWThis Red Lobster is located at 5010 East 2nd Street in Casper, Wyoming. Casper is acity in, and the county seat of, Natrona County. Casper Is the second-largest city inWyoming. Casper is located in east-central Wyoming at the foot of CasperMountain.

Surrounding Retail and Points of InterestThe subject property is well-positioned on East 2nd Street, benefiting from itsproximity to major national and local retailers. Nearby national tenants include:Walmart, The Home Depot, Sam’s Club, Walgreens, Target, Sears, JCPenney,Macy’s, Kohl’s, Best Buy, Starbucks, and Five Guys among various others. TheNational Historic Trails Interpretive Center, a 11,000-square-foot interpretivecenter about several National Historic Trails, is located five miles from the subjectproperty. Additionally, Fort Casper Museum and Historic Site, a military post of theUnited States Army, is located approximately six miles from the subject property.

Traffic Counts and DemographicsCasper has approximately 29,546 individuals residing within a three-mile radius ofthe property and more than 48,078 within a five-mile radius. The subject propertyis located on East 2nd Street which intersects with Southeast Wyoming Boulevard.Southeast Wyoming Boulevard has daily traffic counts of approximately 15,280vehicles. Nearby U.S Interstate-25 has daily traffic counts of roughly 16,600vehicles.

Casper, WyomingCasper is the located in east-central Wyoming and is the second-largest city.Located in Natrona County, Casper is a Wyoming hub for entertainment and bothindoor and outdoor activities. Whether you seek the peacefulness of walking thepathways and parks along the North Platte River, the adventure of skiing orsnowboarding, traveling back in time to the Wild West in the 1800’s, spending arelaxing day out on the golf course, indoors ice skating, or wading in a pool,Casper offers something for everyone. Although relatively small by nationalstandards, Casper is a regional center of banking and commerce. Casper isnicknamed "The Oil City" and has a long history of oil boomtown and cowboyculture, dating back to the development of the nearby Salt Creek Oil Field. In 2010,Casper was named the highest-ranked family-friendly small city in the West, andranked eighth overall in the nation in Forbes magazine's list of "the best smallcities to raise a family“.


1 Miles 3 Miles 5 MilesPOPULATION2022 Projection 3,820 30,930 49,8172017 Estimate 3,562 29,546 48,0782010 Census 3,156 27,092 44,4732000 Census 2,525 23,791 39,952

INCOMEAverage $87,096 $71,304 $67,680Median $66,015 $49,239 $46,985Per Capita $36,637 $29,934 $28,891

HOUSEHOLDS2022 Projection 1,626 13,060 21,2152017 Estimate 1,497 12,353 20,3192010 Census 1,316 11,243 18,6502000 Census 1,017 9,764 16,776

HOUSING2017 $243,194 $191,469 $188,265

EMPLOYMENT2017 Daytime Population 5,221 32,516 54,7172017 Unemployment 3.60% 6.95% 7.19%2017 Median Time Traveled

17 16 16

RACE & ETHNICITYWhite 90.39% 88.46% 88.71%Native American 0.15% 0.11% 0.09%African American 1.49% 1.99% 2.04%Asian/Pacific Islander 0.82% 1.31% 1.17%

Demographics

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1 Mile

3 Miles

5 Miles


Marcus & Millichap hereby advises all prospective purchasersof Net Leased property as follows:

The information contained in this Marketing Brochure hasbeen obtained from sources we believe to be reliable.However, Marcus & Millichap has not and will not verify any ofthis information, nor has Marcus & Millichap conducted anyinvestigation regarding these matters. Marcus & Millichapmakes no guarantee, warranty or representation whatsoeverabout the accuracy or completeness of any informationprovided.

As the Buyer of a net leased property, it is the Buyer’sresponsibility to independently confirm the accuracy andcompleteness of all material information before completingany purchase. This Marketing Brochure is not a substitute foryour thorough due diligence investigation of this investmentopportunity. Marcus & Millichap expressly denies anyobligation to conduct a due diligence examination of thisProperty for Buyer.

Any projections, opinions, assumptions or estimates used inthis Marketing Brochure are for example only and do notrepresent the current or future performance of this property.The value of a net leased property to you depends on factorsthat should be evaluated by you and your tax, financial andlegal advisors.

Buyer and Buyer’s tax, financial, legal, and constructionadvisors should conduct a careful, independent investigationof any net leased property to determine to your satisfactionwith the suitability of the property for your needs.

Like all real estate investments, this investment carriessignificant risks. Buyer and Buyer’s legal and financial advisorsmust request and carefully review all legal and financialdocuments related to the property and tenant. While thetenant’s past performance at this or other locations is animportant consideration, it is not a guarantee of futuresuccess. Similarly, the lease rate for some properties, includingnewly-constructed facilities or newly-acquired locations, may

be set based on a tenant’s projected sales with little or norecord of actual performance, or comparable rents for thearea. Returns are not guaranteed; the tenant and anyguarantors may fail to pay the lease rent or property taxes, ormay fail to comply with other material terms of the lease; cashflow may be interrupted in part or in whole due to market,economic, environmental or other conditions. Regardless oftenant history and lease guarantees, Buyer is responsible forconducting his/her own investigation of all matters affectingthe intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacementtenant if the current tenant should default or abandon theproperty, and the lease terms that Buyer may be able tonegotiate with a potential replacement tenant considering thelocation of the property, and Buyer’s legal ability to makealternate use of the property.

By accepting this Marketing Brochure you agree to releaseMarcus & Millichap Real Estate Investment Services and hold itharmless from any kind of claim, cost, expense, or liabilityarising out of your investigation and/or purchase of this netleased property.

CONFIDENTIALITY AND DISCLAIMER

The information contained in the following MarketingBrochure is proprietary and strictly confidential. It is intendedto be reviewed only by the party receiving it from Marcus &Millichap and should not be made available to any otherperson or entity without the written consent of Marcus &Millichap. This Marketing Brochure has been prepared toprovide summary, unverified information to prospectivepurchasers, and to establish only a preliminary level of interestin the subject property. The information contained herein isnot a substitute for a thorough due diligence investigation.Marcus & Millichap has not made any investigation, andmakes no warranty or representation, with respect to theincome or expenses for the subject property, the futureprojected financial performance of the property, the size andsquare footage of the property and improvements, thepresence or absence of contaminating substances, PCB’s or

asbestos, the compliance with State and Federal regulations,the physical condition of the improvements thereon, or thefinancial condition or business prospects of any tenant, or anytenant’s plans or intentions to continue its occupancy of thesubject property. The information contained in this MarketingBrochure has been obtained from sources we believe to bereliable; however, Marcus & Millichap has not verified, andwill not verify, any of the information contained herein, norhas Marcus & Millichap conducted any investigation regardingthese matters and makes no warranty or representationwhatsoever regarding the accuracy or completeness of theinformation provided. All potential buyers must takeappropriate measures to verify all of the information set forthherein.

NON-ENDORSEMENT NOTICE

Marcus & Millichap Real Estate Investment Services, Inc.(“M&M”) is not affiliated with, sponsored by, or endorsed byany commercial tenant or lessee identified in this marketingpackage. The presence of any corporation’s logo or name isnot intended to indicate or imply affiliation with, orsponsorship or endorsement by, said corporation of M&M, itsaffiliates or subsidiaries, or any agent, product, service, orcommercial listing of M&M, and is solely included for thepurpose of providing tenant lessee information about thislisting to prospective customers.

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

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Gary MangumMarcus & Millichap36 South State Street, Suite 2650Salt Lake City, UT 84111Tel: 801-736-2600Fax: 801-736-2610License: RE-14503

Documents

Red Lobster - 5010 East 2nd Street, Casper, WY 82609 · •Red Lobster is the largest seafood restaurant concept in the world and is an iconic full service brand with broad demographic