P A R M A , O H I O ( C L E V E L A N D M S A )

O F F E R I N G M E M O R A N D U M

EXCLUSIVELY LISTED BY

CRAIG FULLER Senior Vice President Investments Executive Director, National Retail GroupCLEVELAND OFFICE P: (216) 264-2043 C: (216) 407-2430cfuller@ipausa.comLicense: OH SAL.2008001551

SCOTT WILESSenior Vice President Investments Executive Director, National Retail GroupCLEVELAND OFFICE P: (216) 264-2026 C: (216) 870-9424swiles@ipausa.comLicense: OH SAL.2005013197

ERIN PATTONSenior Vice President Investments Executive Director, National Retail GroupCOLUMBUS OFFICE P: (614) 360-9035 C: (614) 323-3345epatton@ipausa.comLicense: OH SAL.2004010274

DUSTIN JAVITCHSenior Associate Net Leased Properties GroupCLEVELAND OFFICE F: (216) 264-2010 C: (216) 264-2025Dustin.Javitch@marcusmillichap.comLicense: OH SAL.2018003592

» KFC with Newly Extended 20-Year NNN Lease in the Cleveland, OH MSA

» Tenant Investing $350,000+/- for Interior & Exterior Renovations | Planned Upgrade to the New KFC American Showman Concept

» Established Location with Strong Store Sales | Up 13% from Previous Year

» 7.5 Percent Rental Increases Every Five Years During Base Term and Renewal Options

» Established KFC with Over 22 Years of Occupancy at this Location

» Lease Guaranty from Mitra QSR | 200+ Locations | Top 50 Largest Franchisee in the Nation & 4th Largest KFC Franchisee

» Strong Access and Visibility to 12,270 Vehicles Per Day Along Pearl Road | Easy Access from Ridge Road (27,334 VPD) via Maysday Avenue

» Absolute NNN Lease with Zero Landlord Responsibilities

» Located Directly Next to Walgreens and Close Proximity to Major Retailers Including Menards, Arhaus Furniture, Value City Furniture, Best Buy, McDonald’s, Taco Bell, Arby’s, AT&T and More

» Dense Population: 316,500 Residents in Five-Miles | Cleveland MSA Population of 2+ Million Residents

» Located A Half-Mile From Interstate-480 Which Sees 137,700 Vehicles Per Day

» KFC is a subsidiary of Yum! Brands, Inc. with Over 21,000 Locations in 130+ Countries

INVESTMENT highlights

E X E C U T I V E S U M M A R Y

KFC5380 Pearl Road

Parma, OH 44129

Offering Price $1,910,000

Cap Rate 5.50%

Current Annual Rent $105,000

Gross Leasable Area (GLA) 1,870 SF

Price/SF $1,021

Year Built/Renovated 1998/2019

Lot Size 0.57 Acres

OFFERING SUMMARY

Legal Tenant MITRA QSR KNE, LLC (dba KFC)

Lease Type Absolute NNN

Roof & Structure Tenant Responsible

Ownership Interest Fee Simple

Lease Guaranty Type Franchisee Guaranty

Guarantor Entity CM7 Restaurant Holdings, LLC

(Parent Company)

Originial Lease Term 20 Years

Original Lease Date 11/1/1996

Amended Lease Date 8/1/2019

Lease Expiration Date 7/31/2039

Remaining Lease Term 20 Years

Renewal Options Four, 5-Year

Rent Increases 7.5% Every 5 Years

Sales & Financial Reporting Yes, Annually

Right of First Refusal No

LEASE SUMMARY

RENT SCHEDULEBase Term Annual Rent Monthly Rent CAP Rate

Years 1 - 5 $105,000 $8,750.00 5.50%

Years 6 - 10 $112,875 $9,406.25 5.91%

Years 11 - 15 $121,341 $10,111.72 6.35%

Years 16 - 20 $130,441 $10,870.10 6.83%

Option Terms Annual Rent Monthly Rent CAP Rate

Option 1 (5 Years) $140,224 $11,685.35 7.34%

Option 2 (5 Years) $150,741 $12,561.76 7.89%

Option 3 (5 Years) $162,047 $13,503.89 8.48%

Option 4 (5 Years) $174,200 $14,516.68 9.12%

DEMOGRAPHIC SUMMARY1 Mile 3 Miles 5 Miles

2018 Population 18,762 129,903 316,502

2023 Population Projection 18,535 127,934 310,615

2018 Households 7,714 56,437 131,908

2023 Households Projection 7,692 56,033 131,024

Average Household Income $59,881 $56,723 $56,087

Median Household Income $52,242 $46,655 $43,917

KF

C

//

PR

OP

ER

TY

A

NA

LY

SI

S

5

T E N A N T O V E R V I E W & P R O P E R T Y D E TA I L S

KFC - a subsidiary of the world’s largest restaurant company, Yum! Brands, Inc. - is the world’s most popular chicken restaurant chain. KFC specializes in fried chicken, seasoned with a secret recipe of 11 herbs and spices. Other menu items include salads, various side dishes, and desserts. KFC is the world’s second largest restaurant chain as measured by sales, trailing on McDonald’s. The KFC system serves more than 12 million customers each day in over 22,600 KFC outlets in more than 130 countries and territories around the world.

Mitra QSR, the franchisee for the subject property, is one of the largest franchisees in the U.S. and is the fourth largest domestic franchisee of KFC restaurants. Currently, Mitra QSR operates more than 200 KFC and Yum! Brand Restaurants across 15 states spanning from Texas to Washington D.C. The company’s restaurants consistently outperform the national average, with current AUVs 30% above the U.S. system-wide average.

SITE DESCRIPTION

Parking 9 Spaces Available

Parking Ratio 4.81 : 1,000 SF

Topography Level

PARCELS

Number of Tax Parcels Three

Parcel Number(s) 443-20-019, 443-20-073, 443-20-074

CONSTRUCTION

Foundation Concrete Slab

Framing Steel

Exterior Masonry

Parking Surface Asphalt

Roof Flat Rubber Composite

MECHANICAL

HVAC Roof Mounted

Fire Protection To Code

Utilities All Local Providers

ZONING

PUD Commercial

ACCESS POINTS

The property is accessed by one entrance from Maysday Avenue and one entrance from

Pearl Road.

THE OFFERING

Tenant KFC

Property Address 5380 Pearl RoadParma, OH 44129

TENANT OVERVIEW

Ownership Public

Stock Symbol & Exchange YUM (NYSE)

Revenue $5.69 Billion

Net Income $1.54 Billion

Market Capitalization $34.18 Billion

Credit Rating & Rating Agency Ba3 (Moody’s)

Fortune 500 Rank #494

Number of Locations 200+ for Franchisee (22,600+ Company-Wide)

Headquartered Louisville, KY

KF

C

//

PR

OP

ER

TY

A

NA

LY

SI

S

6

12, 273 VPDPEARL ROAD

27,334 VPD

MAYSDAY AVE

R E G I O N A L M A P

316,502POPULATION WITHIN 5 MILES

$56,087AVERAGE HOUSEHOLD INCOME

IN 5-MILE RADIUS

131,908HOUSEHOLDS WITHIN 5 MILES

downtown cleveland

POPULATION 1 MILE 3 MILES 5 MILES

2018 EstimateTotal Population

18,762 129,903 316,502

2023 ProjectionTotal Population

18,535 127,934 310,615

2010 CensusTotal Population

18,953 131,168 320,951

HOUSEHOLDS 1 MILE 3 MILES 5 MILES

2018 EstimateTotal Households

7,714 56,437 131,908

2023 ProjectionTotal Households

7,692 56,033 131,024

2010 CensusTotal Households

7,849 57,517 134,997

Owner OccupiedTotal Households

5,676 34,818 79,546

Renter OccupiedTotal Households

2,039 21,619 52,362

HOUSEHOLDS BY INCOME 1 MILE 3 MILES 5 MILES

2018 Estimate

Under - $25,000 19.5% 25.6% 28.7%

$25,000 - $34,999 12.7% 12.1% 12.0%

$35,000 - $49,999 15.3% 15.9% 15.3%

$50,000 - $74,999 24.9% 21.5% 19.9%

$75,000 - $99,999 15.3% 12.8% 11.6%

$100,000 - $124,999 7.3% 6.7% 6.3%

$125,000 - $149,999 3.2% 2.6% 2.9%

$150,000 or More 1.9% 2.9% 3.3%

Average Household Income $59,881 $56,723 $56,087

Median Household Income $52,242 $46,655 $43,917

HOUSEHOLDS BY INCOME 1 MILE 3 MILES 5 MILES

Population By Age

2018 Estimate Total Population 18,762 129,903 316,502

Under 20 Years 24.0% 22.6% 23.8%

20 - 24 Years 6.6% 6.5% 6.6%

25 - 34 Years 15.4% 15.2% 14.7%

35 - 44 Years 13.7% 12.6% 12.4%

45 - 54 Years 13.9% 13.4% 13.6%

55 - 64 Years 12.5% 13.3% 13.2%

65+ Years 14.0% 16.3% 15.7%

Median Age 37.8 39.3 38.7

Population 25+ by Education Level

2018 Estimate Population Age 25+ 13,038 92,025 220,095

Elementary (0-8) 1.5% 2.4% 3.3%

Some High School (9-11) 7.1% 9.6% 11.6%

High School Graduate (12) 38.3% 37.8% 35.8%

Associates Degree Only 10.4% 8.1% 7.7%

Bachelors Degree Only 13.2% 12.5% 12.0%

Graduate Degree 5.2% 5.6% 5.9%

Some College, No Degree 23.3% 22.8% 22.2%

Population by Gender

2018 Estimate Total Population 18,762 129,903 316,502

Female Population 9,500 66,976 162,447

Male Population 9,262 62,927 154,055

DEMOGRAPHICS

KF

C

//

MA

RK

ET

O

VE

RV

IE

W

12

CLEVELAND OHIO

The Cleveland metro is situated in the northeastern corner of Ohio, west of the Pennsylvania state border, and extends 100 miles along the Lake Erie shore and more than 40 miles inland. It is composed of Cuyahoga, Geauga, Lake, Lorain and Medina counties and contains nearly 2.1 million residents, approximately a fifth of the Ohio population. The eastern part of the region lies on the Appalachian Plateau, while the western portion sits upon the Lake Plain, hemming the area in to development. Economic growth and development are diversifying the region’s industries to include medical and technology as well as various corporate headquarters. Telecommunications are also a growing sector, attracting additional tech companies.

2.1M 159k171kRESIDENTS HOUSEHOLDS EMPLOYEES

EXCELLENT INFRASTRUCTURE Cleveland’s transportation facilities strengthen its position as a leading center of business, generating access

to other large metros nationwide.

DIVERSIFYING ECONOMYEducation and health services is the largest employment sector; manufacturing also is

prominent.

REVITALIZING DOWNTOWNCleveland’s downtown is experiencing a metropolitan rebirth as revitalized buildings attract new businesses,

residents and visitors.

CLEVELAND TOP EMPLOYERS

Progressive Corp.

Cleveland Clinic

University Hospitals

Sherwin-Williams Co.

MetroHealth System

KeyCorp

Case Western Reserve University

Park Hannifin Corp.

Swagelok Co.

CLEVELAND OHIO

NON-ENDORSEMENT AND DISCLAIMER NOTICE

NON-ENDORSEMENTMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The

presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of

Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for

the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

CONFIDENTIALITY & DISCLAIMERThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party

receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap.

This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary

level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus &

Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property,

the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of

contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon,

or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property.

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not

verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters

and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must

take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate

Investment Services, Inc. © 2019 Marcus & Millichap. All rights reserved.

P A R M A , O H I O ( C L E V E L A N D M S A )

CRAIG FULLER Senior Vice President Investments Executive Director, National Retail GroupCLEVELAND OFFICE P: (216) 264-2043 C: (216) 407-2430cfuller@ipausa.comLicense: OH SAL.2008001551

SCOTT WILESSenior Vice President Investments Executive Director, National Retail GroupCLEVELAND OFFICE P: (216) 264-2026 C: (216) 870-9424swiles@ipausa.comLicense: OH SAL.2005013197

ERIN PATTONSenior Vice President Investments Executive Director, National Retail GroupCOLUMBUS OFFICE P: (614) 360-9035 C: (614) 323-3345epatton@ipausa.comLicense: OH SAL.2004010274

DUSTIN JAVITCHSenior Associate Net Leased Properties GroupCLEVELAND OFFICE F: (216) 264-2010 C: (216) 264-2025Dustin.Javitch@marcusmillichap.comLicense: OH SAL.2018003592

EX

CL

US

IVE

LY

LIS

TE

D B

Y