Native Grill. 15-year absolute net lease 50 Unit RESTAURANT OPERATOR E. Old Vail Road, Tucson, AZ 85747

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1 Native Grill Native Grill [ REPRESENTATIVE PHOTO ] [ REPRESENTATIVE PHOTO ] 15-year absolute net lease 50 Unit RESTAURANT OPERATOR E. Old Vail Road, Tucson, AZ John Andreini jandreini@capitalpacific.com (415) CA BRE# In Conjunction with AZ Licensed Broker: Jessica Zahn Gibson, CIA Brokerage Company (619) jzahn@ciadvisor.com [ ]

2 core characteristics 15 year absolute net lease native grill in Tucson, Arizona Located within the tucson tech corridor - 70 companies are located from wilmot road to houghton road along interstate 10 property highlights Pad to brand new Walmart Supercenter-anchored Houghton Town Center, which includes Panda Express, Taco Bell, Verizon, McDonald s, Dunkin Donuts, AutoZone, Freddy s, and Northwest Emergency Room Hospital. Five minute drive from UA Tech Park, which has 6,500 employees and 2 million square feet of office, laboratory, and production including Raytheon, CitiGroup, and IBM. Within the Vail School District (the state s top performing district). $85,000+ is the average household income within one and three-mile radices. Brand new construction The subject property is on a hard corner signalized intersection that connects numerous communities in southeast Tucson, both old and new, where a variety of top tier retailers have signed leases. The Las Plazas at Old Vail development will cater to residents of Rita Ranch, Vail, and Corona de Tucson, as well as the 6,500 professionals working at the nearby UA Tech Park. Large lot with over 100 parking spaces. Native Grill (See page 7 & 8 for more details) Named Restaurant Business Magazine Future 50 Restaurant Franchises in 2013 and open locations (plus 3 under construction) with franchise agreements and growth plans in place to be at 100 stores in five years. operator/guarantor (see page 7 & 8 for more details) Operator/Guarantor of this location recently purchased a majority interest in Native Grill & Wings corporate. Through its network of partners and franchisees, Native currently has 32 operating units with plans to triple that number in 5 years. Operator/Guarantor also has a 50 unit franchise agreement with Freddy s covering seven western states and currently operates 12 open Freddy s stores (15 leases signed), which consistently perform below a 7% rent-to-sales ratio. He has set numerous Freddy s sales records, in addition to winning several awards. Net worth of guarantors in excess of $20M including $12M in liquidity Lease 15-year lease; rental increases of 10% every 5 years and in option periods Zero landlord responsibilities - all expenses are administered directly by Tenant [ UA Tech Park ] Two separate personal guarantees with a net worth in excess of $20 million Native Grill 2

3 income & expense PRICE $3,200,000 Price Per Square Foot: $ Capitalization Rate: 6.00% Total Rentable Area (SF): 4,991 Lot Size (Acres): 1.20 STABILIZED INCOME Per Square Foot Scheduled Rent $38.47 $192,000 LESS Per Square Foot Taxes Tenant Pays Direct $0.00 Insurance Tenant Pays Direct $0.00 EQUALS NET OPERATING INCOME $192,000 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. [ REPRESENTATIVE PHOTO ] Native Grill 3

4 aerial the subect property is located at a hard corner, signalized interseciton E Valencia Road Mesquite Elementary E Old Vail Road E Rita Road RITA RANCH Desert Sky Middle School Vail Academy and High School LAS PLAZAS SHOPPING CENTER 21,000 DAILY S Rita Road 4,000 DAILY Cottonwood Elementary E Old Vail Road HOUGHTON TOWN CENTER Empire High School 10 E Mary Ann Cleveland Way 10 TUcsON CITY CENTER 51,994 DAILY S Houghton Road Native Grill 4

5 rent roll TENANT INFO LEASE TERMS RENT SUMMARY Tenant Name Sq. Ft. Term Yearly Rent Monthly Rent Monthly Rent/FT Yearly Rent/FT Native Grill 4, $192,000 $16, $3.21 $ $211,200 $17, $3.53 $ $232,320 $19, $3.88 $46.55 Option $255,552 $21, $4.27 $51.20 Option $281,107 $23, $4.69 $56.32 Current Totals: 4,991 $192,000 $16,000 $3.21 $38.47 *Projected Rent Commencement/Store Opening 1/15/2016 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. [ surrounding Area ] Native Grill 5

6 site plan Houghton Road 21,000 DAILY Old Vail Road Site Plan Key 4,000 DAILY Parcel outline: Land Area: 1.2 Acres Building Area: 4,991 sf Ingress/Egress: Native Grill 6

7 tenant overview about Native Grill Based in Chandler, Arizona, Native Grill & Wings is a family-friendly, polished sports grill with 32 restaurants throughout Arizona, Colorado and Texas. Native, as the brand s legion of fans call it, serves 20 award-winning wing flavors that guests can order by the individual wing, as well as an extensive menu of burgers, sandwiches, salads and more. Today, combined with a strong leadership team and a growing group of franchisees, Native Grill & Wings is gaining national recognition as one of the fastest-growing concepts in the more than $202 billion fullservice restaurant industry. Native focuses on food and being family-friendly. The polished sports grill proudly offers 20 wing flavors from Strawberry Hot to Ancho Chile Lime, Asian Garlic to Honey Chipotle that guests can order by the individual wing, as well as an extensive menu of burgers, sandwiches, salads and more. Most of the sauces and rubs can be used to customize other menu items. The restaurants are divided into a bar and restaurant, with approximately flat screen TVs throughout, offering sports coverage for families and serious fans, and a customer base spanning all generations baby boomers, Generation Xers and Millennials. about the Guarantor/Owner of Native grill The guarantor of the lease recently acquired the 35 unit (3 under construction) Native Grill chain. He and his partner have BOTH personally guaranteed the lease and have a net worth in excess of $20 million (ask Agent for more details). The guarantor is also one of the top Freddy s franchisees (12 open, 3 under construction) and has a 50-unit franchise agreement covering seven Western States. His twelve open Freddy s stores have been operating below a 7% rent-to-sales ratio and there are three more stores currently under construction. [ REPRESENTATIVE PHOTO ] Native Grill 7

8 in the news Native Grill lands private investment deal September 17, 2015 CHANDLER, AZ --(BUSINESS WIRE)--Native Grill & Wings, an award winning Arizona-based restaurant chain known for its 20 wing flavors that guests can order by the individual wing, has announced its new majority ownership after a private investment deal was signed, leading the way for increased national expansion. The deal was led by current Native Grill & Wings CEO Dan Chaon, together with Brad Williams, one of the largest Freddy s Frozen Custards and Steakburgers franchisees in the nation and a small group of various real estate and franchise experts. The group will operate under the name Wingtime LLC. New ownership group takes majority control of the company lead by CEO Dan Chaon This is a major step for Native Grill & Wings becoming the next national powerhouse when it comes to full-service restaurants and chicken wings, said Chaon. We have already expanded into several states outside of Arizona and the momentum raised from this deal will open additional doors throughout the country. Williams, who formerly practiced law, secured the rights to 60 Freddy s Frozen Custards and Steakburgers four years ago and has been involved in numerous other business and real estate transactions. As soon as I had my first experience at Native Grill & Wings, I knew the family-oriented business was something I was interested in, said Williams. The original family members will remain owners of a small legacy percentage in the company. Native Grill & Wings (or, Native, as the regulars called it) focuses on food and being family-friendly unlike competitors such as Hooters, Twin Peaks and Buffalo Wild Wings. The polished sports grill proudly offers 20 wing flavors from Strawberry Hot to Ancho Chile Lime, Asian Garlic to Honey Chipotle that guests can order by the individual wing, as well as an extensive menu of burgers, sandwiches, salads and more. Most of the sauces and rubs can be used to customize other menu items. The restaurants are divided into a bar and restaurant, with approximately flat screen TVs throughout, offering sports coverage for families and serious fans, and a customer base spanning all generations baby boomers, Generation Xers and Millennials. [ REPRESENTATIVE PHOTO ] Native Grill 8

9 surrounding retail Subject property is adjacent to houghton Town Center with super walmart, panda express, & more Native Grill 9

10 area Development Houghton Road 21,000 DAILY Under Negotiations LAS PLAZAS SHOPPING CENTER Future Development Houghton Road HOUGHTON TOWN CENTER Old Vail Road Old Vail Road 4,000 DAILY 10 TUCSON CITY CENTER Native Grill 10

11 location & demographics Tucson, AZ Overview Tucson is the county seat of Pima County and is the second largest city in Arizona. The Greater Tucson area is home to approximately 1.02 million residents and serves as the anchor of all business in the Southern Arizona corridor. Much of Tucson s economic development has been centered on the evolution of the University of Arizona. Currently home to over 42,000 students, the university is among the top 20 U.S. public research institutions and located in the center of metropolitan Tucson. The private sector has made commitments to create a growing, healthy economy with advanced technology industry sectors as its foundation. Raytheon Missile Systems, Texas Instruments, IMB, Intuit Inc., and Universal Avonics and just some of the technology companies that have a significant presence in Tucson. Roughly 150 Tucson companies are involved in the design and manufacture of optics and optoelectronics systems, earning the city the nickname Optics Valley. Population 3-Mile 5-Mile 7-Mile ,519 35,083 69, ,666 38,139 73, ,978 40,403 76, Household incomes 1-Mile 3-Mile 5-Mile Average $86,756 $86,335 $78,242 Median $77,565 $75,850 $65,119 Top Employers Raytheon University of Arizona Davis - Montahn Air Force Base Walmart Stores Pima County tucson 23 MIN 17 Miles 21,000 DAILY Native Grill 11

12 A unique HUMAN RESULTS-DRIVEN client experience The capital pacific experience - our daily commitment to our clients [ ] [ surrounding Area ] John Andreini jandreini@capitalpacific.com (415) CA BRE# Bob Sanner CA BRE# [ Copyright 2015 Capital Pacific ] Rick Sanner CA BRE# In Conjunction with AZ Licensed Broker: Jessica Zahn Gibson, CIA Brokerage Company (619) jzahn@ciadvisor.com Capital Pacific collaborates. Click here to meet the rest of our San Francisco team: chris kostanecki chris peters dave lucas zandy smith jack navarra zeb ripple joe caccamo gregg steele karla zens Native Grill 12