Actual 3D Rendering for Subject Property Site

767 N Neufeld Lane | Post Falls, ID 83854

Investment Opportunity Absolute Triple Net Lease

FOR MORE INFORMATION, CONTACT:

Lew ManglosAssociate Broker 208 472 2841 lew.manglos@colliers.com

Colliers International 755 W Front Street Suite 300 Boise, ID 83702

Table of Contents

> executive overview Offering Summary ...................................4 Brand/Tenant Profiles .............................5

> financial overview Investment Details ...................................7 Comparable Properties.............................8

> property overview Property Details .......................................10 Retail Aerial ..............................................11 Location Summary ...................................12 Demographics ...........................................13

Confidentiality & Disclaimer ......................14

Representative Photo

This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s). ©2017. All rights reserved.

executive overview

Representative 3D Rendering

EXECUTIVE OVERVIEW | 4

$2,900,000 | 5.17% Cap RateColliers International, as exclusive advisor to

the seller, is pleased to present the net-leased investment opportunity of the fee-simple interest in a brand new Popeye’s restaurant, located in

Post Falls, ID.

The construction of the improvements are scheduled to be completed in Q3 2017. An absolute NNN lease with a primary term of

20 years will commence upon completion of construction. The lease features two (2) 5-year options to extend with 10% rent increases every five years throughout both the primary term and

option periods.

The subject property’s site is located just off of Interstate 90, less than one quarter mile from the ID-41 exit. Surrounding retailers include a

WalMart Supercenter, Starbucks, Sonic Drive-In, Del Taco, Wendy’s and a 76 gas station. Also in the immediate vicinity are the Idaho Department of Labor offices and Northern Idaho Advanced

Care Hospital.

Offering Summary

Address 767 N Neufeld Lane, Post Falls, ID 83854Building Size 3,149 SFLot Size 54,886 SF | 1.26 AcresConstruction Completion August 2017APN P00000063350Restaurant Seats 62Parking Spaces 21

Real Estate Information

Representative 3D Rendering

Brand Profile

Popeyes was founded in 1972 and operates and franchises over 2,000 restaurants worldwide, making it the world’s second largest QSR concept. Popeyes Louisiana Kitchen, Inc. is traded on Nasdaq under “PLKI.”

Popeyes recently released its Preliminary Fiscal Year 2016 Operating Results. Global same-store sales were reported at an increase of 2.8%, and domestic same-store sales at an increase of 3.0%.

During the 4th Quarter, 52 domestic stores and 37 international restaurants were opened, bringing total restaurant openings for 2016 to 216. As of December 25, 2016, Popeyes has 2,688 restaurants operating in the United States, three territories, and 25 foreign countries.

Source: http://investor.popeyes.com/releasedetail.cfm?ReleaseID=1007236

Tenant Profile

Upon completion of construction, a 20 year NNN lease will be executed by a regional operator. Currently, the tenant operates 24 Popeyes locations, and by end of year 2017 the total number of Popeyes in operation will increase to 30.

The tenant also currently operates various other concepts such through its various entities. Presently, 5 Black Bear Diners are operated, with 4 more scheduled to open prior to the end of the year, as well as 1 Twin Peaks location and 1 Arco/AMPM location. 2 Sonic restaurants are expected to open in 2017 as well.

A personal guaranty will be in place with the lease at the time of its execution, which will cross-collaterize all of the above-mentioned operating assets into said guaranty. This rare diversification of the sponsor guaranty across 5 national and regional brands provides an investor with a more stable and reliable income stream.

EXECUTIVE OVERVIEW | 5

financial overview

3D Rendering

Tenant Regional Multi-Unit OperatorPrimary Term 20 yearsTerm Commencement Upon completion of constructionOption(s) to Extend Two (2) 5-year OptionsRent Increases 10% every five years throughout

Primary Term and Option PeriodsGuaranty PersonalHolding Over 125%Right of First Refusal YesMaintenance/Repairs Tenant responsibilityTaxes Tenant responsibilityUtilities Tenant responsibilityLandlord Responsibilities None - Absolute NNNAssignment/Subletting With prior written consent from

LandlordAlterations With Landlord consent

Lease Abstract

Lease Year Annual Rent Increase Cap Rate1 $150,000 5.17%2 $150,000 5.17%3 $150,000 5.17%4 $150,000 5.17%5 $150,000 5.17%6 $165,000 10% 5.69%7 $165,000 5.69%8 $165,000 5.69%9 $165,000 5.69%10 $165,000 5.69%11 $181,500 10% 6.26%12 $181,500 6.26%13 $181,500 6.26%14 $181,500 6.26%15 $181,500 6.26%16 $199,650 10% 6.88%17 $199,650 6.88%18 $199,650 6.88%19 $199,650 6.88%20 $199,650 6.88%Total $3,480,750 Average 6.00%

Primary Term

Rent Schedule

Option Period Annual Rent Increase Cap Rate1 (5 years) $219,615 10% 7.57%Total $1,098,075 2 (5 years) $241,576.44 10% 8.33%Total $1,207,882.20 Average 7.30%

Option Periods

Price $2,900,000NOI $150,000Cap Rate 5.17%Price PSF Building $920.93Price PSF Land $52.84

Financial Overview

Investment Details

FINANCIAL OVERVIEW | 7

Sold ComparablesAddress Sale Date Sale Price Cap Rate Bldg SF Price PSF Land SF Year Built12520 Washington Blvd., Whittier, CA 8/29/2016 $2,682,500 4.25% 2,311 $1,160.75 20,124 2016

3430 E Franklin Blvd., Gastonia, NC 7/7/2016 $2,215,000 5.33% 2,901 $763.53 43,124 1993

3246 Mercer University Drive, Macon, GA 9/14/2016 $1,515,000 6.00% 2,078 $729.07 31,798 1998

10419 S Memorial Drive E., Tulsa, OK 1/22/2016 $1,500,000 5.52% 2,225 $674.16 27,007 2007

8427 Dorchester Road., North Charleston, SC 3/8/2016 $1,045,000 5.00% 2,000 $522.50 34,848 2002

Average $1,791,500 5.22% $770.00 Subject Property $2,900,000 5.17% 3,149 $920.93 54,886 2017

Address List Price Cap Rate Bldg SF Price PSF Land SF Year Built Remaining Term NOI on Remaining Term Average Cap Rate101-111 Carol Lane, Oakley, CA $3,813,000 4.50% 7,200 $526.58 33,106 2016 20 $3,981,281 5.51%

4750 N Reserve Street, Missoula, MT $1,300,000 6.46% 3,026 $429.61 38,265 2016 20 $1,746,836 6.88%

1117 E Pine Street, Tulsa, OK $1,953,000 5.85% 1,974 $989.36 27,878 2001 13.5 $1,629,576 6.15%

10207 E 41st Street, Tulsa, OK $2,120,000 5.85% 2,063 $1,027.63 29,621 2006 13.5 $1,768,835 6.15%

2817 Zinfandel Drive, Racho Cordova, CA $2,264,000 4.50% 2,695 $840.07 36,590 2016 10 $1,044,270 4.61%

2032 11th Street, Huntsville, TX $1,500,000 5.00% 2,231 $672.34 43,908 1996 14 $1,107,187 5.25%

3300 N 1st Avenue, Evansville, IN $1,703,500 5.75% 3,235 $526.58 49,223 2005 17.5 $1,958,718 6.55%

14777 Bear Valley Road, Hesperia, CA 92345 $1,764,000 4.25% 2,238 $788.20 20,909 2015 20 $1,691,546 4.79%

8527 Foothill Blvd., Sunland, CA 91040 $2,352,941 4.25% 2,537 $927.45 22,000 2015 9 $949,999 4.46%

Total/Average $2,085,605 5.16% $747.54 15.28 $1,764,250 5.59%Subject Property $2,900,000 5.17% 3,149 $920.93 54,886 2017 20 $4,060,867 5.17%

FINANCIAL OVERVIEW | 8

On Market Comparables

property overview

Representative 3D Rendering

PROPERTY OVERVIEW | 10

Property Details

Address:767 N Neufeld Lane, Post Falls, ID 85854

Buidling Size:3,149 square feet

Lot Size:54,886 square feet | 1.26 acres

Construction Completion:August 2017

Parcel Number:P00000063350

Restaurant Seats:62

Parking Spaces:21

Access Points:2

3D Rendering

Site Plan

41

41

23,500 Cars Per Day

23,739 Cars Per Day

PROPERTY OVERVIEW | 12

Spokane, WA Population: 210,721

Spokane Valley, WAPopulation: 99,113 Post Falls, ID

Population: 29,357Coeur d’Alene, ID

Population: 46,402

Coeur d’Alene National Forest

Geography Post Falls, Id, part of Kootenai County is located in the northwestern region of the state, only approximately 4 miles east of the Washington border and approximately 21 miles east of Spokane, Washington. Boise, ID is approximately 275 miles to its south and the Canada-United States border is approxi-mately 90 miles to its north. The city is intersected by Interstate 90, which is the primary east-west highway in the area, and Idaho State Highway 41, which runs south-north. Coeur d’Alene, a premiere vacation destination, is less than 10 miles southeast of Post Falls. Coeur d’Alene boasts many luxuri-ous attractions and accomodations such as the Coeur d’Alene Resort, located on the shore of Lake Coeur d’Alene, as well as the Coeur d’Alene Casino. The scenic landscape and peaceful surroundings of more than 55 lakes attract tourists from throughout the United States and abroad.

Economy Population and economic growth has stimulated the labor foce of Kootenai County. Idaho has an unemployment rate of 3.7% as of December, 2016, down from 4.7% as of December, 2015, and a full percent lower than the national unemployment rate. Top employers in the area include: Kootenai Medical Center (1,650 employees), Post Falls School District (690 employees), Coeur d’Alene Casino (720 employees), Hagadone Corporation (2,000 employees) and North Idaho College (930 employees). The 2017 estimated average household income within 1 mile of the subject property is $73,844.

Post Falls, Idaho Location Summary PROPERTY OVERVIEW | 12

767 N Neufeld Lane, Post Falls, ID 83854 1 Mile 3 Miles 5 MilesPopulation2022 Projection 8,032 35,289 76,6202017 Estimate 7,412 32,574 70,1022010 Census 6,490 28,516 60,164Growth 2017 - 2022 8.36% 8.33% 9.30%Growth 2010 - 2017 14.21% 14.23% 16.52%

Population by Single Classification RaceWhite Alone 6,874 | 92.74% 30,276 | 92.94% 64,912 | 92.60%Black or African American Alone 46 | 0.62% 192 | 0.59% 389 | 0.55%Amer. Indian and Alaska Native Alone 75 | 1.01% 366 | 1.12% 864 | 1.23%Asian Alone 84 | 1.14% 361 | 1.11% 786 | 1.12%Native Hawaiian and Other Pac. Isl. Alone 11 | 0.15% 51 | 0.16% 119 | 0.17%Some Other Race Alone 111 | 1.50% 388 | 1.19% 783 | 1.12%Two or More Races 211 | 2.85% 941 | 2.89% 2,250 | 3.21%

2017 Estimated Average Age 37.7 37.3 36.6

Households2022 Projection 3,079 13,448 29,5792017 Estimate 2,830 12,354 26,9682010 Census 2,455 10,677 22,911Growth 2017 - 2022 8.80% 8.86% 9.68%Growth 2010 - 2017 15.25% 15.70% 17.71%

2017 Estimated Average Household Income $73,844 $68,677 $67,214

Demographics

Demographic Highlights

The subject property’s surrounding area has been experiencing positive growth in terms of population and households.

• From 2010-2017, the population in a 5-mile radius increased by 16.52% and is expected to increase another 9.30% over the next 5 years.

• Similarly, the total amount of house-holds in a 5-mile radius increased by 17.71% from 2010-2017, and projections place the growth from 2017-2022 at 9.68%.

• The estimated household average income within a 1-mile radius is well over national average figures at $73,844.

• Nearly 38% of the population in the same radius earn an income in excess of $75,000.

PROPERTY OVERVIEW | 13

This Offering Memorandum contains select information pertaining to the business and affairs of a privately owned Popeyes Restaurant located at 767 N Neufeld Lane, Post Falls, ID 83854 (Property). It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Owner or Colliers International. The material is based in part upon information supplied by the Owner and in part upon financial information obtained by Colliers International from sources it deems reliable. Neither Owner, nor their officers, employees, or agents make any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum from Colliers International, you agree:

1) The Offering Memorandum and its contents are confidential;

2) You will hold it and treat it in the strictest of confidence; and

3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Owner.

Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of Popeyes or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Owner or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

confidentiality & disclaimer statement

May 15, 2017 1:28 PM

FOR MORE INFORMATION, CONTACT:

Lew ManglosAssociate Broker 208 472 2841 lew.manglos@colliers.com

Colliers International 755 W Front Street Suite 300 Boise, ID 83702

3D Rendering

767 N Neufeld Lane | Post Falls, ID 83854

INVESTMENT OPPORTUNITY ABSOLUTE TRIPLE NET LEASE