Julioberto's Mexican Restaurant

yu Julioberto's Mexican Restaurant 2855 West Cactus Road, Ste. 38, Phoenix, AZ 85029 OFFERING MEMORANDUM NET LEASE INVESTMENTS LOCAL MARKET CONACT: Matt McNeill +1 858 546 5467 Matt.mcneill@cushwake.com CA Lic #01486968 Christina Garibian +1 858 546 5417 christina.garibian@cushwake.com CA Lic #01975933 Chuck Klein +1 858 546 5473 chuck.klein@cushwake.com CA Lic #01522766 Brad Douglass +1 602 224 4406 brad.douglass@cushwake.com AZ Lic #SA625141000

Disclaimer Cushman & Wakefield has been retained as exclusive advisor to the Seller for the sale of the Julioberto's (the Property ), approximately 3,650 square feet on approximately 13,939 square feet of land at 2855 West Cactus Road, Ste. 38, Phoenix, AZ 85029. This Offering Memorandum has been prepared by Cushman & Wakefield for use by a limited number of parties and does not purport to provide a necessarily complete summary of the Property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information which prospective investors may need or desire. All projections have been developed by Cushman & Wakefield, the Owner, and designated sources and are based upon assumptions relating to the general economy, competition, and other factors beyond the control of the Owner and Cushman & Wakefield, therefore, are subject to variation. No representation is made by Cushman & Wakefield or Owner as to the accuracy or completeness of the information contained herein, and nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of the Property. Although the information contained herein is believed to be correct, Owner and its employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, Cushman & Wakefield, Owner, and its employees disclaim any and all liability for representations and warranties, expressed and implied, contained in, and omitted from, this Offering Memorandum or any other written or oral communication transmitted or made available to the recipient. This Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of the Property or the Owner since the date of preparation of the package. Analysis and verification of the information contained in this package is solely the responsibility of the prospective purchaser. any entity at any time with or without notice. Owner shall have no legal commitment or obligation to any entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase of the Property has been fully executed, delivered, and approved by Owner and its legal counsel, and any conditions to Owner s obligations thereunder have been satisfied or waived. Cushman & Wakefield is not authorized to make any representations or agreements on behalf of Owner. This Offering Memorandum and the contents, except such information which is a matter of public record or is provided in sources available to the public (such contents as so limited herein are called the Contents ), are of a confidential nature. By accepting the package, you agree (i) to hold and treat it in the strictest confidence, (ii) not to photocopy or duplicate it, (iii) not to disclose the package or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior written authorization of Owner or Cushman & Wakefield, (iv) not use the package or any of the contents in any fashion or manner detrimental to the interest of Owner or Cushman & Wakefield, and (v) to return it to Cushman & Wakefield immediately upon request of Cushman & Wakefield or Owner. The information contained herein has been obtained from the owner of the property or from other sources we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it. If you have no further interest in the Property, please return this Investment Offering Memorandum forthwith. Additional information and an opportunity to inspect the Property will be made available upon written request to interested and qualified prospective investors. Owner and Cushman & Wakefield each expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers regarding the Property and/or terminate discussions with 4350 La Jolla Village Drive, Suite 500 San Diego, CA 92122 T 858.546.5400 F 858.630.6320 www.cushmanwakefield.com Julioberto's 2855 W Cactus Road, Suite 38 Phoenix, AZ ii

Executive Summary EXECUTIVE SUMMARY: Location: APN: Total Building Size: Julioberto's: Owner/Management: Land Size: 2855 West Cactus Road, ste.38 Phoenix, AZ 85029 149-17-164A ~3,650 square feet ~2,100 square feet ($33.00 PSF) ~1,550 square feet ($14.75 PSF).32 acres TERM: JULIOBERTO'S WEST VALLEY LEASING OFFICE 1 $70,000.00 $22,862.50 2 $70,000.00 $22,862.50 3 $70,000.00 $22,862.50 4 $70,000.00 $22,862.50 5 $70,000.00 $22,862.50 Year Built: 1979 / Remodeled 2015 TENANT: JULIOBERTO'S Square Footage: 2,100 SF Rent Commencement: August 28, 2015 Lease Expiration: August 27, 2025 6 $70,000.00 7 $70,000.00 8 $70,000.00 9 $70,000.00 10 $70,000.00 Lease Term: Options: Lease Type: TENANT: Square Footage: Rent Commencement: Lease Expiration: Lease Type: Ten (10) years Two (2) five (5) year options Absolute NNN Lease WEST VALLEY LEASING OFFICE 1,550 SF Close of Escrow Five (5) years Absolute NNN Lease BASE RENT SCHEDULE: Net Operating income: $92,862.50 Price: $1,428,653.85 Cap Rate: 6.50% Julioberto's 2855 W Cactus Road, Suite 38 Phoenix, AZ 1

Property Information Project Highlights NNN Lease New 10 year lease with no landlord maintenance or other expense responsibilities. Experienced Operator Tenant is a 9 unit franchisee with an established track record in the Phoenix MSA. 24 Hour Location with Drive-Thru The convenience afforded by the drive-thru combined with 24/7 hours will enable this location to generate top level revenues. Freeway Accessibility the site is located.2 miles from Interstate 17, with over 165,000 vehicles per day. Interstate 17 is accessible in both directions from W Cactus Road. Excellent Retail Demographics Population of 407,000 residents and Average Household Income over $60,000 within a 5 mile radius of the subject property. Limited Competition there is very limited competition in the immediate trade area for quick service Mexican restaurants, with the majority of the competition located over 1 mile south on W Peoria Ave. Future Upside Space adjacent to Julioberto s will be leased back at below market rents by West Valley Leasing Office for a management office for five years at $14.75 psf, triple net. Estimated market rent is $16 to $17 psf, triple net, representing an opportunity to increase cash flow in the future. Adirellis Tacos W PEORIA AVE Chipotle About Julioberto's Julioberto s Restaurant is an independently owned restaurant founded in 2009. Julio Mancillas first started in the restaurant business in 1986, helping operate Alberto s Mexican Restaurant for many years. He then moved onto join the owner of Filiberto s in 1995, a large family run franchise currently operating over 80 locations. Julio opened up his own franchise of Filiberto s in 2003 and continued to run a number of others over the next few years. Finally in 2009 he decided to start his own business and called it Julioberto s Mexican Restaurant. Over the last 6 years Julio has opened 9 other locations and continues to look for other opportunities. Garcia s Cantina Rolando s Mexican Food La Parilla Suiza W CACTUS ROAD Taco Bell Don Ruben s Mexican Food Julioberto's 2855 W Cactus Road, Suite 38 Phoenix, AZ 2 HWY 17 Access

Property Information 1,364,932 SF SHOPPING CENTER 125 RETAILERS W PEORIA AVE 215,200 CARS PER DAY HWY 17 Waterfront Apartments Brentwood Apartments Biltmore on the Lake Woodlake Condos HWY 17 ACCESS W CACTUS ROAD 33,300 CARS PER DAY This exhibit is diagrammatic only and is intended only to show the general location of the parcel and an approximate depiction of the center as it is currently is expected to exist. This exhibit does not contain the exact lines of the parcel nor does it depict the exact location of any other tenants or occupants of the center. Further, references to store names on this exhibit shall in no manner constitute any kind of representation as to present or future use or occupancy of spaces at the center by such stores. This exhibit is not a representation or warranty that the center will remain as depicted, nor as to any future development, occupancy or use of space at the center. Julioberto's 2855 W Cactus Road, Suite 38 Phoenix, AZ 3

SHAW BUTTE SCHOOL W CACTUS RD (30,961 VPD) WOODSTONE APARTMENTS BRENTWOOD APARTMENTS OVER 9,500 EMPLOYEES WITHIN A 1-MILE RADIUS LAKEVIEW ELEMENTARY SCHOOL DESERT SHORES CONDOMINIUMS DUNLAP-STONE UNIVERSITY LAKE BILTMORE ESTATES CACTUS WREN TRAINING CENTER N 35TH AVE (35,826 VPD) 1,364,932 SF SHOPPING CENTER with 125 RETAILERS INTERSTATE 17 (178,787 VPD) CHOLLA MIDDLE SCHOOL WATERFRONT APARTMENTS WELLS FARGO HOME EQUITY CAVE CREEK WASH RECREATION AREA # OF EMPLOYEES State of Arizona 48,910 Wal-Mart 32,438 Banner Health 30,266 City of Phoenix 14,875 Wells Fargo 14,126 Maricopa County 13,341 Arizona State University 12,229 Intel Corp. 11,700 Scottsdale Lincoln Health 10,500 Honeywell International 10,000 CAVE CREEK INDUSTRIAL CENTER N 19TH AVE (41,154 VPD)_ MAJOR EMPLOYERS CORONADO HEALTHCARE CENTER EATON INDUSTRIAL PARK BILTMORE ON THE LAKE TIMBERTREE APARTMENTS GROVE AT BLACK CANYON METRO RESEARCH CENTER HEWSON/ COPLEY NORTHWEST KARSTEN INDUSTRIAL PARK W PEORIA RD (49,765 VPD) BLACK CANYON COMMERCE PARK CHERYL DRIVE INDUSTRIAL Julioberto's 2855 W Cactus Road, Suite 38 Phoenix, AZ 4

17 (CPD 33,351) (CPD 215,255) 17 Julioberto's 2855 W Cactus Road, Suite 38 Phoenix, AZ 5

Area Information The City of Phoenix Phoenix is the fifth largest most populous city in the United States, the state capital of Arizona, and the center of the metropolitan area encompassed by Maricopa County. The metropolitan area also includes Avondale, Chandler, Buckeye, El Mirage, Gilbert, Glendale, Goodyear, Litchfield Park, Mesa, Peoria, Scottsdale, Surprise, Tempe and Tolleson; and all unincorporated areas of the County. The City has grown steadily since its inception. As of June 30, 2014, the City encompassed 519.4 square miles, with the City of Phoenix Development Services and Planning Department estimating the City s population at 1.6 million. Metro Phoenix Economy Phoenix is consistently ranked as one of the fastest growing economies of all metro areas. The value of goods and services produced in the Phoenix metro area reached $187.4 billion in 2008, larger than the output of many countries. Financial service companies, including national banks and insurance companies with large support offices and data centers, are located in Phoenix. They are attracted to Phoenix, in part, because of the low occurrence of weather disruptions or earthquakes. American Express, USAA, State Farm Insurance, and Charles Schwab employ thousands of residents in Metro Phoenix offices. Healthcare services and the bioscience industry are also pillars of growth in Phoenix. Since 2002, jobs in this industry have grown at three times the national average. There are over two-dozen major hospitals in the region including the Mayo Clinic and the Barrow Neurological Institute at St. Joseph s Hospital. The Phoenix Biomedical Campus, located on 28 acres in downtown Phoenix, includes the TGen genomics research institute, a branch of the University of Arizona College of Medicine, and the Arizona Biomedical Collaborative research center. Expansions of the College of Medicine and of the Arizona Cancer Center are planned for that downtown campus. Phoenix also has many large distribution centers to supply major cities throughout the Southwest, including Los Angeles and San Diego located 350 miles to the west. Tourism and recreational services are important segments of the economy. Phoenix Sky Harbor International Airport serves 40 million passengers a year. It is one of the nation s top ten busiest airports and is ranked 19th in the world for passenger traffic. Sky Harbor Airport is also known as the world s friendliness airport! As a result of the global recession, the Phoenix economy contracted by one percent in 2008 in real terms. This contraction was mostly caused by the sharp drop of construction of new houses and commercial buildings. The unemployment rate in Phoenix always tracks lower than the national average, reflecting the diversity and resiliency of the Phoenix economy. The labor force of Phoenix is not reliant on any single industry. The Future of Phoenix The population growth rate of the Phoenix metro area increased by nearly 4% per year for the past 40 years. That growth rate slowed during the recession of 2008-09. However, the U.S. Census Bureau predicts it will resume with the national economic recovery, and it already has begun to do so. Construction is occurring at the Phoenix Sky Harbor International Airport on the new PHX Sky Train, an elevated and automated train that will transport people between the nearest Metro light rail station and the main terminal. That first phase was completed in 2013. The second phase extension to the west will connect the other two terminals and the rental car center by 2020. People move to Phoenix not just for the weather and high quality of life, but also for jobs. And companies move to Phoenix to take advantage of the highly skilled labor force, low operating costs and low risk of natural disasters. There are no tornadoes or hurricanes in Phoenix only the occasional haboob dust storm which is sort of a gust of dusty wind that deposits dirt on your car once a year. More photo op than anything else. Julioberto's 2855 W Cactus Road, Suite 38 Phoenix, AZ 6

Demographics Census 2010 Summary 1 mile 3 miles 5 miles Population 18,394 141,690 393,185 Households 7,278 52,995 151,572 Families 4,088 33,337 94,441 Average Household Size 2.52 2.65 2.57 Owner Occupied Housing Units 3,522 28,248 87,119 Renter Occupied Housing Units 3,756 24,747 64,453 Median Age 31.9 33.0 35.1 2015 Summary Population 19,396 146,374 407,834 Households 7,677 54,863 157,789 Families 4,246 34,119 97,040 Average Household Size 2.52 2.64 2.56 Owner Occupied Housing Units 3,431 27,288 84451 Renter Occupied Housing Units 4,246 27,575 73,338 Median Age 32.5 33.4 35.7 Median Household Income $39,342 $42,844 $44,884 Average Household Income $48,933 $56,461 $60,509 2020 Summary Population 20,598 153,231 428,314 Households 8,162 57,616 166,364 Families 4,482 35,548 101,393 Average Household Size 2.52 2.64 2.55 Owner Occupied Housing Units 3,575 28,452 88,237 Renter Occupied Housing Units 4,587 29,165 78,127 Median Age 32,9 33.7 35.9 Median Household Income $43,932 $50,206 $52,196 Average Household Income $55,309 $63,925 $68,607 Trends: 2015-2020 Annual Rate Population 1.21% 0.92% 0.98% Households 1.23% 0.98% 1.06% Families 1.05% 0.82% 0.88% Owner Households 0.83% 0.84% 0.88% Julioberto's 2855 W Cactus Road, Suite 38 Phoenix, AZ 7