Offering Memorandum

$2,202,500| Investment Details

Over $200,000 price reduction – Seller motivated Perfect for risk averse buyer – Proven QSR operator New 15 year NNN leases to commence upon close of escrow Seasoned location having occupied the site for the last 3 years Located at a signalized hard corner with drive thru Strong traffic count with more than 26,235 vehicles passing in

front of the site daily Located 4 miles north of Tooele Army Depot – Storage Site for war

reserve and training ammunitions Growing Salt Lake Suburb where average household income

exceeds $71,000 within a one mile radius from the site Forbes has Zaxby’s listed as one of the best growing franchisees

in the country Lease calls for 10% rent escalations every five years including

option periods, hedging against inflation

Actual Site Photo

1064 N Main Street, Tooele, Utah 84074

TENANT OVERVIEW

Parent Company: Zaxby’s

Franchised operator: MJM 5G / 9 unit operator with combined net worth > $9.5(mil)

Private Ownership / Franchisee Guarantee

Zaxby’s operates 800 stores in the Southern United States

Headquarters – Athens, Georgia

Website – www.zaxbys.com

Zaxby’s is a franchised chain of casual restaurants offering chicken wings, tenders, sandwiches and salads. The first Zaxby’s was established in Stateboro, Georgia near the university by Zach McLeroy and Tony Townley. They restaurants are known for their tangy and zesty sauces that go from mild to nuclear. The dining rooms are decorated in assorted whimsical objects and signs which often vary in theme by location and region. Some locations in college towns feature objects and decorations related to the local university, making them unofficial college student school spirit go-to joints.

For more information about the success of this QSR, please click on the link entitled BEST AND WORST FOOD FRANCHISES: OUR RANKINGS AND INSIDE THE RISE OF ZAXBY’S CHAIN IN THE US, dated June 30, 2016 (Forbes).

TENANT INFO

SITE PHOTO

CLICK HERE

Performance Ford & Chevrolet Dealership

Overview

Price $2,202,500

Gross Leasable Area (estimate) 3,800

Lot Size 1.09 Acres

Net Operating Income $132,148

CAP Rate 6.00%

Year Built 2014

Lease Abstract

Lease Type Modified NNN*

Lease Term 15 Years

Lease Start Close of Escrow

Renewal Options 4x5

Increases 10% Every five years

Roof and Structure Landlord Responsible

THE OFFERINGMarcus & Millichap is pleased to announce the exclusive right to list for sale the within Zaxby’s. Offering a passive investor the opportunity to purchase anewly constructed QSR with one of the fastest growing restaurant chains in the country. A new 15 year modified NNN lease will commence upon close ofescrow, giving a buyer a full 15 years of return on investment. The lease also calls for 10% rent escalations every five years which hedges against inflation.

Years Rent

COE (Years 1-5) $132,148

Years 6-10 $145,362

Years 11-15 $159,899

Option 1 $175,888

Option 2 $193,477

Option 3 $212,825

Option 4 $234,108

* Tenant reimburses landlord for taxes, insurance and premises maintenance as additional rents (monthly). Landlord is responsible for roof & structure repairs and maintenance.

Beehive Storage

Copper Canyon Elem School

Performance Ford & Chevrolet Dealership

Scholar Academy

All Star Bowling

Definition Value

APN 02-127-0-0060

Building SF (ESTIMATE) 3,800

Lot Size 1.09 Acres

SITE PLAN / PARCEL

SALT LAKE CITYOVERVIEW

Centrally located among the major Western U.S. markets, Salt Lake City is known as theCrossroads of the West. The metro consists of three counties: Salt Lake, Tooele andSummit. It is situated in the Great Salt Lake Valley in northern Utah. The region ishemmed in by the Great Salt Lake to the northwest, the Wasatch Mountain Range to theeast and the Oquirrh Mountains to the west. The metro houses 1.2 million people. SaltLake City is the largest city, with approximately 200,000 residents. The highestpercentage of population growth continues to occur in the suburban areas such as Southand West Jordan. The Salt Lake City, Provo-Orem and Ogden-Clearfield metrostogether comprise the Wasatch Front.

MARKET OVERVIEW

METRO HIGHLIGHTS

EMPLOYMENT GROWTHSkilled trade and educated workers, attractive outdoor recreation opportunities and low overhead costs lure employers to the region.

EXPANDING HOUSEHOLD INCOMESThe metro’s household income is consistently well above the national median.

LARGE INSTITUTIONSThe Salt Lake City economy benefits from its status as the capital of Utah and the headquarters of the Church of Jesus Christ of Latter-day Saints.

9

REGIONAL OVERVIEW

ECONOMY A stable base of government entities are located in the metro, while growing companies in

the private sector include technology leaders eBay and Oracle Corp. Various companies have located data centers in the metro, including Twitter Inc., Goldman

Sachs and the National Security Agency. Tourism will remain a top employment generator over the coming years. The metro is home

to several world-class ski resorts, including Brighton, Park City, Alta and Snowbird. The Salt Palace Convention Center and the Energy Solutions Arena host conventions and trade shows.

SHARE OF 2016 TOTAL EMPLOYMENT

MAJOR AREA EMPLOYERS

Intermountain Health Care

University of Utah

State of Utah

Delta Airlines Corp.

Zions Bancorporation

Novus Technologies

Cordant Technologies

Smith’s Food and Drug

Wells Fargo Bank

Salt Lake City Community College* Forecast

MANUFACTURING8%

GOVERNMENT

HEALTH SERVICESEDUCATION AND

+OTHER SERVICES

3%

LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES

20%AND UTILITIES

TRADE, TRANSPORTATION CONSTRUCTION

PROFESSIONAL ANDBUSINESS SERVICES

3%INFORMATION

18%

5%

15% 8% 8%

12%

10

REGIONAL OVERVIEW

DEMOGRAPHICS

SPORTS

EDUCATION

ARTS & ENTERTAINMENT

The metro is expected to add nearly 70,000 people through 2021, resulting in the formation of roughly 20,000 households.

Median incomes above the national average allow 66 percent of households to afford to own a home, compared with the national rate of 64 percent.

Roughly 30 percent of people age 25 and older hold bachelor’s degrees; of those residents, 10 percent also have obtained a graduate or professional degree.

The Wasatch Range provides a multitude of year-round recreational opportunities,

including ski resorts and more than a dozen national parks and monuments. Cultural

venues include Abravanel Hall, the Rose Wagner Performing Arts Center, Hale Centre

Theatre and the Off Broadway Theatre. Salt Lake City’s major educational institution is the

University of Utah, which also contains a medical school. The university is known for its

technology transfer program that moves state-of-the-art research into useful applications

in the business world. There are 10 other colleges and universities in the metro. In addition,

two other major educational institutions are located just outside of Salt Lake City: Brigham

Young University in Provo and Utah State University in Logan.

322016

MEDIAN AGE:

U.S. Median:

37.7

$64,300 2016 MEDIAN

HOUSEHOLD INCOME:

U.S. Median:

$54,500

1.2M2016

POPULATION:

Growth2016-2021*:

5.7%

392K2016

HOUSEHOLDS:

5.8%

Growth2016-2021*:

QUALITY OF LIFE

2016 Population by Age

0-4 YEARS

8%5-19 YEARS

23%20-24 YEARS

7%25-44 YEARS

31%45-64 YEARS

21%65+ YEARS

10%

* Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau

11

REGIONAL OVERVIEW

DEMOGRAPHICS

$71,0731-mile radius average HH Income

36,734 11,3865-mile population density 5-mile Number of households

1064 N Main Street, Tooele, Utah 84074

EXCLUSIVELY REPRESENTED BY:

Lior RegenstreifSenior Managing Director InvestmentsSenior Director Net Leased Properties Group

16830 Ventura Blvd., Suite 100Encino, CA 91436818.907.9525 DirectE-mail: Lior.Regenstreif@MarcusMillichap.com

IN STATE BROKER OF RECORD:

Gary Mangum36 S State St., Suite 2650Salt lake City, UT 84111801.736.2600 Direct

E-mail: Gary.Mangum@MarcusMillichap.com