Investment Overview

LOCATION- LOCATED IN THE MAIN RETAIL CORRIDOR OF MADISONVILLE, TN • Located in a dense retail corridor across the street from Walmart Supercenter- other national retailers in the immediate area include: Ingles, CVS, Walgreens, United Grocery Outlet, Dollar Tree, Shoe Show, AutoZone, Advance Auto, Dunkin’, McDonald’s, Burger King, Taco Bell, Zaxby’s, and Bojangles • Located on US 411 (ADT of nearly 19,000 cars/day)- US 411 stretches for over 309 miles and runs through northeastern Alabama, northwestern Georgia, and southeastern Tennessee • Madisonville, located approximately 40 miles Southwest of Knoxville and the county seat of Monroe County, benefits from regional access to manufacturing corridors, tourism traffic, and a workforce tied to both local industry and nearby metro employment centers • Knoxville is the state’s third largest MSA with over 200,000 residents- home to University of Tennessee which has nearly 40,000 students and 10,000 employees, and is estimated to have an economic impact on the state’s economy of nearly $2 billion dollars LEASE TERMS- ABSOLUTE NNN LEASE WITH ANNUAL INCREASES • In 2010, Krystal signed an absolute NNN Lease for 18 years with 1.0% annual escalations and four (4), five (5) year options to extend • Percentage Rent clause of 3.0% of the adjusted net sales in excess of Lease Year 1 net sales • Conservative rent of only $82,950 • Fee-simple asset allowing for depreciation benefits TENANT AND PROPERTY- KRYSTAL COMPANY CURRENTLY OPERATES APPROXIMATELY 300 UNITS • Krystal Company, the 2nd oldest QSR chain in the U.S. (established 1932), currently operates approximately 300 units across 10 states • Long-term occupancy- Krystal has been operating at this location for approximately 18 years (2008) • Large parcel size for Krystal- approximately .93 acres