Investment OFFERING $2,547,000 Carl s JR

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1 REPRESENTATIVE PHOTO Investment OFFERING $2,547, BOB MOORHEAD JOE CAPUTO RUSSELL SMITH property. Newly Renovated, 2,482+ SF building on.61+ acres. tenant. Carl s Jr Franchisee: Frontera Star Foods. The operator behind Frontera Star Foods, LLC, (Tenant) has an extensive background in construction and retail development. The company has committed to opening 20 units in the Laredo, Brownsville, McAllen, and Harlingen areas in Southeast Texas. Jason LeVecke, operator of Frontera Star Foods, LLC, is currently one of the largest Hardee s & Carl s Junior franchisors and is the grandson of Carl s Jr. founders Carl and Margaret Karcher. lease structure. Brand new, 20-year, NNN lease with 7.5% rent increases every 5-years in initial term. location. Carl s Jr is strategically located along W. University Dr (29,373 Cars / Day), on a pad site to Walmart, in central Edinburg, TX. University Dr is a primary east-west thoroughfare for Edinburg, serving the immediate region and surrounding cities. Population within a 3-mile radius of the site is 142,930 and within the same radius, population growth is projected at 9.00% over the next 5-year period ending in This convenience and accessibility has attracted significant retail development. Major tenants in the immediate trade area include Walmart, Lowes, Staples, McDonald s, Wendy s, Sonic, Denny s, Chili s, Luby s, Subway, Burger King, Whataburger, Taco Bell, GameStop, Payless Shoe Source, Staples, Chase, AT&T, and many others. The subject property is directly southeast of the University of Texas-Pan American (19,000+ enrollment). Edinburg is located in the Rio Grande Valley, 230-miles south of San Antonio, TX.

2 Table of contents Disclaimer PAGE 1: PAGE 2: PAGE 3: PAGE 4-5: PAGE 6: PAGE 7: PAGE 8-9: PAGE 10: COVER TABLE OF CONTENTS DISCLAIMER INVESTMENT TENANT LEASE OVERVIEW AERIAL PHOTOS SITE PLAN LOCATION OVERVIEW LOCATION MAPS DEMOGRAPHICS Disclaimer EXP Realty Advisors, Inc. ( Agent ) has been engaged as an agent for the sale of the property located at by the owner of the Property ( Seller ). The Property is being offered for sale in an as-is, where-is condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. The enclosed materials are being provided solely to facilitate the prospective investor s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Agent nor the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein. Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller. Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller s obligations hereunder have been satisfied or waived. By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller and Agent.

3 Investment overview PRICE: $2,547,000 NET OPERATING INCOME: $152,808 Lease overview Initial Lease Term: 20-Years, Plus 4, 5-Year Options to Renew Projected Rent Commencement: August 2014 PROJECTED BUILDING AREA: 2,776+ Square Feet Projected Lease Expiration: August 2034 LAND AREA:.69+ Acres YEAR BUILT RENNOVATED: LANDLORD RESPONSIBILITY: None OWNERSHIP: Fee Simple Interest OCCUPANCY: 100% Lease Type: Absolute NNN Rent Increases: 7.5% Increase Every 5 Yrs In Initial Term Year 1-5 Annual Rent (Current): $152,808 Year 6-10 Annual Rent: $164,268 Year Annual Rent: $176,588 Year Annual Rent: $189,832 Year Annual Rent (Option 1): market Rate Year Annual Rent (Option 2): negotiated rate for first 5 year option x 1.05 Year Annual Rent (Option 3): negotiated rate for first 5 year option x 1.10 Tenant overview Frontera Star Foods, LLC dba Carl s Jr Year Annual Rent (Option 4): negotiated rate for first 5 year option x 1.15 Right of First Refusal: Yes FRONTERA STAR FOODS, LLC, dba Carl s Jr The operator behind Frontera Star Foods, LLC, (Tenant) has an extensive background in construction and retail development. The company has committed to opening 20 units in the Laredo, Brownsville, McAllen, and Harlingen areas in Southeast Texas. Jason LeVecke, operator of Frontera Star Foods, LLC, is currently one of the largest Hardee s & Carl s Junior franchisors and is the grandson of Carl s Jr. founders Carl and Margaret Karcher. CARLS S JR Carl s Jr is an American restaurant chain, which predominantly operates in the South and Midwest states. It has evolved through several corporate ownerships since its establishment in It is currently owned and operated by CKE Restaurants. Along with its sibling restaurant chain, Hardee s. Carl s Jr has more than 1,100 restaurants worldwide and is a wholly-owned subsidiary of CKE Restaurants. SUBJECT PROPERTY CARL KARCHER ENTERPRISES, INC. PRIOR TO PANDA EXPRESS EXPANSION Founded by Carl s Jr. entrepreneur Carl Karcher in 1964, Carl Karcher Enterprises (CKE) today owns, operates, franchises and/or licenses 3,243 quick-service restaurants (QSR) in 43 states, primarily under the brand names Carl s Jr. and Hardee s, both of which offer innovative, premium products intended to appeal to a target audience of young, hungry guys. CKE Restaurants is the parent company of Carl s Jr., Hardee s, Green Burrito, and Red Burrito restaurant chains. The company employs a dual branding technique for Carl s Jr. with Green Burrito. Similarly Hardee s has a dual branding strategy with Red Burrito. Carl s Jr. primarily operates in western US and West Coast regions. In 2013, CKE Restaurants, Inc. was purchased by the private equity firm Roark Capital Group, based out of Atlanta. Roark s franchise and multi-unit portfolio includes 29 brands that collectively have more than 15,000 locations and $15 billion in system-wide revenues across 50 states and 68 countries. Roark s total locations include nearly 13,000 domestic locations and more than 2,300 international locations. They also include nearly 13,000 franchise locations (operated by 4,200 franchisees) & 2,300 company-owned locations. The firm has $3 billion of equity capital under management. 3

4 Aerial photo Region One Education Service Center Access Mini Storage Storage Depot South Texas Preparatory Academy 4

5 Aerial photo Self Storage 5

6 SITE PLAN 6

7 Location overview IMMEDIATE TRADE AREA Carl s Jr is strategically located along W. University Dr (29,373 Cars / Day), on a pad site to Walmart, in central Edinburg, TX. University Dr is a primary eastwest thoroughfare for Edinburg, serving the immediate region and surrounding cities. Population within a 3-mile radius of the site is 142,930 and within the same radius, population growth is projected at 9.00% over the next 5-year period ending in This convenience and accessibility has attracted significant retail development. Major tenants in the immediate trade area include Walmart, Lowes, Staples, McDonald s, Wendy s, Sonic, Denny s, Chili s, Luby s, Subway, Burger King, Whataburger, Taco Bell, GameStop, Payless Shoe Source, Chase, AT&T, and many others. The subject property is directly southeast of the University of Texas-Pan American (UTPA). The University of Texas-Pan American, a Hispanic serving institution, is located in Edinburg, Texas, approximately 10 miles north of the US/Mexico border and 75 miles northwest of South Padre Island. UTPA provides program specific classes in Rio Grande City, McAllen and South Padre Island in addition to those offered through the online learning center. Since its inception in 1927, The University of Texas-Pan American has conferred over 2,600 associates, 61,000 bachelors, 13,000 masters, and 178 doctoral degrees. Current enrollment figures for UTPA are 19,000+ students. EDINBURG, TX / HIDALGO COUNTY The city of Edinburg (Population: 81,029), is located in the Rio Grande Valley in Texas and is the county seat of Hidalgo County. Hidalgo County is one of the fastest-growing counties in the US and is the 8 th most-populous county in Texas. Its population in 2010 was 774,769, a 35% increase from Hidalgo County exhibited strong economic growth in the early to late 2000s. Gross domestic product in Hidalgo County, a measure of total economic output, grew at an average annual growth rate of 8.2% from 2001 through 2008, to $13.8 billion dollars (See Figure 4). Hidalgo County s GDP growth was 1.5 times faster than GDP growth in the U.S. economy (5.0% annual average growth rate) during the same period. Additionally, Hidalgo County has been one of the few areas in the U.S. to have weathered the recession well. Since the recession began in the fourth quarter of 2007, through the first quarter of 2010, the Hidalgo County economy was identified as one of the top 21 strongest performing economies in the U.S. according to MetroMonitor. RIO GRANDE VALLEY The Rio Grande Valley is located in the southernmost tip of Texas and is made up of 4 counties: Starr County, Hidalgo County, Willacy County, and Cameron County. This area is anchored by the cities of Brownsville, McAllen, Edinburg, Pharr and Mission. These 4 counties where these cities area located have a combined population of 1,138,872 and is growing quickly Hidalgo County, which encompasses the McAllen-Edinburg-Mission Metropolitan Statistical Area had a population increase of 36.05% placing it as the 11th fastest growing Metropolitan Statistical Area from 2000 to 2010 in the United States. The McAllen-Edinburg-Mission MSA is also part of the transnational metropolitan area (TMA) of Reynosa McAllen, known unofficially as RioPlex or BorderPlex. The transnational statistical area is represented by 40 of America s top 100 retailers. More than 80 of Fortune 500 s global manufacturers have operations in the MSA. Included among them are: AT&T, Bissell, Black & Decker, BMW, Delco, Drexel, Meyer, Eaton, Emerson, GE, Johnson Controls, Nokia, R.R. Donnelley & Sons, Panasonic, Siemens, Sony, Symbol, TRW, West Bend and Whirlpool. The TMA is the retail center of South Texas and Northern Mexico, drawing from a consumer base of over 8.2 million people. The Rio Grande Valley and the rest of South Texas are among the most dynamic regions of Texas. In a recent economic report by the State Comptroller the economic outlook of the region was rated as excellent with a job creation expected to outpace that of the rest of the state through This sector has become the driving force in the local economy, which has grown 138% over the last decade to over $3.58 billion and employing 27% of the local workforce. MSA / TMA ACCOLADES: Fastest Growing Metro Area in the Nation Fiscal Times, No. 1 Best Housing Market in the Nation Wall Street Journal, No. 4 Best Mid-Sized Cities for Jobs Forbes, Top 100 Location for Doing Business Area Development Magazine, 2011 One of the Top Ten Best Areas for Recession Recovery -Forbes, One of the Best Places to Launch a Small Business CNN Money, MSA Ranked 1st in High Technology Sector Growth in MSA has the 3rd Lowest Cost of Living in the US. Mexican Nationals Account for 20% to 35% of Border Exported Retail Sales. 7

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10 Demographics Hardee s 1704 W University Dr Edinburg, TX mi radius 3 mi radius 5 mi radius 1704 W University Dr Edinburg, TX mi radius 3 mi radius 5 mi radius POPULATION HOUSEHOLDS AGE MARITAL STATUS & GENDER INCOME 2014 Estimated Population 15,450 66, , Projected Population 16,652 72, , Census Population 14,724 63, , Census Population 10,408 41,754 88,253 Projected Annual Growth 2014 to % 1.6% 1.6% Historical Annual Growth 2000 to % 4.3% 4.0% 2014 Estimated Households 5,633 21,635 42, Projected Households 6,162 23,665 46, Census Households 5,273 20,248 40, Census Households 3,516 12,711 26,008 Projected Annual Growth 2014 to % 1.9% 1.9% Historical Annual Growth 2000 to % 5.0% 4.6% 2014 Est. Population Under 10 Years 16.1% 17.5% 17.8% 2014 Est. Population 10 to 19 Years 16.2% 16.7% 17.2% 2014 Est. Population 20 to 29 Years 28.6% 18.7% 16.4% 2014 Est. Population 30 to 44 Years 17.9% 20.3% 20.8% 2014 Est. Population 45 to 59 Years 12.2% 14.9% 15.9% 2014 Est. Population 60 to 74 Years 6.3% 8.1% 8.4% 2014 Est. Population 75 Years or Over 2.6% 3.7% 3.5% 2014 Est. Median Age Est. Male Population 48.1% 47.9% 48.2% 2014 Est. Female Population 51.9% 52.1% 51.8% 2014 Est. Never Married 44.6% 36.0% 33.9% 2014 Est. Now Married 33.6% 43.6% 46.8% 2014 Est. Separated or Divorced 17.3% 15.6% 15.1% 2014 Est. Widowed 4.5% 4.8% 4.2% 2014 Est. HH Income $200,000 or More 1.4% 2.6% 3.1% 2014 Est. HH Income $150,000 to $199, % 3.7% 4.0% 2014 Est. HH Income $100,000 to $149, % 10.4% 11.6% 2014 Est. HH Income $75,000 to $99, % 10.6% 11.5% 2014 Est. HH Income $50,000 to $74, % 17.0% 16.6% 2014 Est. HH Income $35,000 to $49, % 14.1% 13.1% 2014 Est. HH Income $25,000 to $34, % 9.8% 10.1% 2014 Est. HH Income $15,000 to $24, % 10.8% 11.4% 2014 Est. HH Income Under $15, % 21.1% 18.6% 2014 Est. Average Household Income $47,202 $58,328 $63, Est. Median Household Income $38,609 $47,276 $49, Est. Per Capita Income $17,421 $19,034 $19, Est. Total Businesses 452 2,349 4, Est. Total Employees 4,777 26,847 48,751 LABOR FORCE OCCUPATION TRANSPORTATION TO WORK TRAVEL TIME CONSUMER EXPENDITURE 2014 Est. Labor Population Age 16 Years or Over 11,194 47,466 97, Est. Civilian Employed 64.4% 60.6% 59.4% 2014 Est. Civilian Unemployed 5.5% 5.7% 5.5% 2014 Est. in Armed Forces Est. not in Labor Force 30.0% 33.7% 35.1% 2014 Labor Force Males 47.1% 46.8% 47.2% 2014 Labor Force Females 52.9% 53.2% 52.8% 2010 Occupation: Population Age 16 Years or Over 6,984 26,868 54, Mgmt, Business, & Financial Operations 8.0% 10.2% 11.2% 2010 Professional, Related 28.3% 26.6% 25.9% 2010 Service 22.9% 21.2% 20.9% 2010 Sales, Office 26.7% 26.8% 26.7% 2010 Farming, Fishing, Forestry 0.6% 0.9% 0.6% 2010 Construction, Extraction, Maintenance 6.5% 6.9% 7.5% 2010 Production, Transport, Material Moving 7.0% 7.4% 7.2% 2010 White Collar Workers 62.9% 63.6% 63.8% 2010 Blue Collar Workers 37.1% 36.4% 36.2% 2010 Drive to Work Alone 77.2% 78.9% 80.0% 2010 Drive to Work in Carpool 12.4% 11.5% 11.0% 2010 Travel to Work by Public Transportation 0.4% 0.7% 0.4% 2010 Drive to Work on Motorcycle 0.7% 0.4% 0.3% 2010 Walk or Bicycle to Work 4.2% 2.5% 1.9% 2010 Other Means 3.1% 3.3% 3.3% 2010 Work at Home 1.9% 2.8% 3.1% 2010 Travel to Work in 14 Minutes or Less 34.6% 35.3% 32.8% 2010 Travel to Work in 15 to 29 Minutes 48.8% 44.6% 47.0% 2010 Travel to Work in 30 to 59 Minutes 15.4% 17.7% 17.7% 2010 Travel to Work in 60 Minutes or More 1.2% 2.4% 2.5% 2010 Average Travel Time to Work Est. Total Household Expenditure $237 M $1.04 B $2.19 B 2014 Est. Apparel $11.5 M $50.6 M $106 M 2014 Est. Contributions, Gifts $13.9 M $64.3 M $137 M 2014 Est. Education, Reading $6.38 M $28.9 M $60.9 M 2014 Est. Entertainment $13.0 M $57.9 M $122 M 2014 Est. Food, Beverages, Tobacco $39.2 M $169 M $353 M 2014 Est. Furnishings, Equipment $9.90 M $44.8 M $94.5 M 2014 Est. Health Care, Insurance $17.2 M $74.2 M $155 M 2014 Est. Household Operations, Shelter, Utilities $70.7 M $312 M $655 M 2014 Est. Miscellaneous Expenses $4.03 M $17.4 M $36.2 M 2014 Est. Personal Care $3.49 M $15.2 M $31.8 M 2014 Est. Transportation $47.5 M $208 M $436 M 10

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