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OFFERING MEMORANDUMPHENOMENAL RENT TO SALES RENT BUMP AT THE END OF 2021 TRANSLATING TO A 6.33% CAP RATE

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Colliers International is pleased to offer the opportunity to purchase a OUTSTANDING PERFORMING KFC located at 6636 South Avenue, Boardman, OH.

This is a 11.5 year franchisee guaranteed lease with KFC. This is a passive invest-ment, as KFC executed an absolute NNN lease offering zero landlord responsibili-ties or expenses. This location is one of the best performing in the Country. There are 10% rental increases every 5 years with the next bump coming on January 1st, 2022 in the base term of the lease and in each of the 1, five-year option & 1, 4-year option to renew.

This property is located in a dense retail corridor across from the Southland Crossings Shopping Center. The subject property is strategically situated off I680 on Exit 11A to Highway 224. The sales of this dense location has an incredibly healthy rent to sales ratio that translates to a profiting location.

The property is offered at $1,836,067 which translates to a 5.75% cap rate. After the next rent bump on 1/1/2022 the Cap Rate will translate to a 6.33%.

ContactsChristian PeraAssociate+1 847 384 2844 christian.pera@colliers.com

Peter BlockExecutive Vice President peter.block@colliers.com

Joseph AustinVice President joseph.austin@colliers.com

Josh TeuberVice Presidentjosh.teuber@colliers.com

BROKER OF RECORDChris SeeligSenior Vice PresidentCOLLIERS INTERNATIONAL 200 Public Square, Suite 1200 Cleveland, OH 44114

Summary

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DetailsSTRATEGIC LOCATION › Across from Southland Crossings Shopping Center

› Located on a hard corner with a lighted intersection

› Boardman is located in between the major metropolis’ of Cleveland and Pittsburgh

› Sits just North of Highway 224 and the exit on off ramp of Interstate 680

› Near Youngstown State University (15,000 students)

STRONG INVESTMENT FUNDAMENTALS › Rent bump on 1/1/2022 which correlates to a 6.33% cap rate

› Rent to sales ratio is extremely low

› Strong balance sheet showing it is an extremely profitable location

› Strong guarantor

INVESTMENT HIGHLIGHTS › Franchise Guarantee

› Strong Brand

› Significantly growing brand

› KFC is Rated “BB” by S&P, or investment grade

$105,574N O I

$1,836,067 P R I C E

10% every 5 years, inc. optionsE S C A L AT I O N S

8.31.2012C O M M E N C E M E N T E S T .

5.75%C A P R AT E

12.8.2031E X P I R AT I O N E S T .

11.6 YRSL E A S E T E R M R E M A I N I N G

Morgan FoodsG U A R A N T E E

PROPERTY DESCRIPTION

PROPERTY ADDRESS 6636 South Ave.Boardman, OH 44512

OFFERING PRICE $1,836,067

NOI $105,573.86

CAP RATE 5.75%

LAND SIZE 0.64 acres

BUILDING SIZE 3,528 SF

LEASE SUMMARY

LEASE TYPE NNN

LEASE TERM REMAINING 11.6 Years

RENT COMMENCEMENT August 31, 2012

LEASE EXPIRATION December 8, 2031

RENEWAL OPTIONS 1 (5) Year Option & 1 (4) Year Option

ESCALATIONS 10% every five years

NEXT RENT INCREASE January 1, 2022

GUARANTOR Morgan Foods

COLLIERS INTERNATIONAL | OFFERING MEMORANDUM

Offering Details

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Area Retail

7,330

SOUTH AVENUE

B O A R D M A N

BOARDMAN GLENWOOD JUNIOR HIGH SCHOOL

B O A R D M A N B O A R D M A N PA R KPA R K

F I E L D S O F F I E L D S O F D R E A MD R E A M

M I L L C R E E K M I L L C R E E K P R E S E R V EP R E S E R V E

SOUTH AVENUE

AKRON CHILDERN’S HOSPITAL

MERCY HEALTH-ST. ELIZABETH HOSPITAL

37,521

32,658

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Area MapBoardman is a suburb immediately south of Youngstown. Boardman is one of two major retail hubs in the Mahoning Valley. Boardman was founded by Elijah Boardman in the late 1780s. Though the CDP of Boardman consists of suburban spillover from Youngstown, Boardman was traditionally an agricultural community with grain crops and apple orchards. Around the turn of the century, the railroad led to Southern Park, a horse racing facility on Washington Boulevard, making the area an early draw for Youngstown urbanites. Because of its proximity to Youngstown, Boardman was ripe for strip development starting as early as 1950. Boardman is a large, sprawling suburb. It is a busy community south of Youngstown composed of many chain restaurants. It is one of the main shopping and retail centers for the greater Youngstown area. Its main competitor is the northern 422 “Strip” in Niles, Ohio (a similar suburb of Warren, Ohio) While much development is centered on the 224 corridor, a new area of development (even further south) is surging along the South Avenue artery which parallels the southern extension of Interstate 680 between its Midlothian and Western Reserve Road exits. Boardman abuts one of the Youngstown area’s most popular attractions, Mill Creek Park. Within the park grounds, there is an 11-acre (45,000 m2) rose garden, several small waterfalls, a lily pond with geese and turtles, marshlands, and Lanterman’s Mill, where grain is ground daily. In addition, there is a 36-hole golf course. Public education is provided by the Boardman Local School District. Boardman High School is the only public high school in Boardman. The first high school, located on Market Street, became the Boardman Center Middle School (grades 5–8) in 1969, when the new high school was built on Glenwood Avenue. Board-man Center Middle School changed again to Boardman Center Interme-diate School (grades 5-6). The district operates seven schools: Board-man High School, Glenwood Junior High School, Center Intermediate School, and Market Street, Robinwood Lane, Stadium Drive, and West Boulevard Elementary Schools.

Location Overview

Area Map

PITTSBURGH

WARREN

6636 SOUTH AVE, BOARDMAN, OH 44512

GROVE CITY

AKRON

ASHTABULA

YOUNGSTOWN

CLEVELAND

CANTON 59 MILES

5.1 MILES

73 MILES

MEADVILLE

ERIE

MENTOR

NEW PHILADELPHIA

About KFC

KFC Corporation, based in Louisville, Kentucky, is one of the few brands in America that can boast a rich, decades-long history of success and innovation. KFC is the world’s most popular chicken restaurant chain. Founded in 1952 by Colonel Sanders, KFC continues to use his classic special blend of herbs and spices that keeps their chicken tasting great and customers coming back for more. They offer fried chicken, home-style sides and buttermilk biscuits. In January 2019, KFC announced a new global sustainability commitment that all plastic-based, consumer-facing packaging will be recoverable or reusable by 2025.

There are over 22,000 KFC outlets in more than 130 countries and territories around the world. It is esti-mated that more than 185 million people see a KFC commercial at least once a week – more than 1/2 of the US population. The KFC system serves more than 12 million customers each day. KFC’s parent company is Yum! Brands, Inc., the world’s largest restaurant company in terms of system restaurants, with more than 47,000 locations worldwide while employing more than one million associates. Yum! is ranked number 23 on Entrepreneur Magazine’s 2019 ‘Franchise 500’ list, demonstrating that KFC has proven its enduring staying power both culturally and financially.

Demographics

kfc.com

REVENUE$5.69 billion

COUNTRIES130

OWNERSHIPPublic

FOUNDED1952

HEADQUARTERSLouisville, KY

LOCATIONS22,000

TENANTMorgan Foods

CREDIT RATINGS&P BB

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6636 SOUTH AVE, BOARDMAN, OH 44512

6,743people

2,917households

$71,750 average HHI

.5 mile

1 mile

1.5 miles

62,418people

26,955households

$63,586average HHI

113,161people

48,898households

$63,285average HHI

This Offering Memorandum contains select information pertaining to the business and affairs of the property at 6636 South Ave, Youngstown, OH 44512. 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 Seller or Colliers International. The material is based in

part upon information supplied by the Seller and in part upon financial information obtained by Peter Block from sources it deems reliable. Owner, nor their officers,

employees, or agents makes 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 Seller.

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 the property at 6636 South Ave, Youngstown, OH 44512 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 Seller 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

ContactsChristian Pera

Associate+1 847 384 2844

christian.pera@colliers.com

Peter BlockExecutive Vice President peter.block@colliers.com

Joseph AustinVice President

joseph.austin@colliers.com

Josh TeuberVice President

josh.teuber@colliers.com

BROKER OF RECORDChris Seelig

Senior Vice PresidentCOLLIERS INTERNATIONAL

200 Public Square, Suite 1200 Cleveland, OH 44114