Hardee’s1 7 0 3 S o u t h N e i l S t r e e t | C h a m p a i g n , I L 6 1 8 2 0

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

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e x c l u s i v e ly l i s t e d b yW e s l e y c o n n o l ly, M B A

Wesley.Connol ly@matthews.comDIR (949) 432-4512MOB (707) 477-7185LIC # 01962332 (CA)

Senior Associate

Randy OlczykBroker on RecordLic # 471.018001

A l e x h a r r o l d

Associate

Alex.Harrold@matthews.comDIR (310) 919-5790MOB (310) 388-0788LIC # 02009656 (CA)

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I n v e s t m e n t H i g h l i g h t s

Long Term Investment Opportunity

• Nearly 11 years remaining on the initial lease term

• Absolute NNN investment – Zero landlord responsibilities

• Attractive Percentage Rent in addition to minimum monthly rent

• Built in rental increases every 5 years – solid hedge against inflation

• Healthy lease guarantee – Approximately 68 units on the entity backing

Well Positioned Property

• Located directly across the street from the University of Illinois at Urbana – Champaign with over 44,000+ students enrolled

• Within walking distance from the University’s Division I Football and Basketball stadiums

• Rare two way access from S State St 7,000 ADT and S Neil St 22,000 ADT

• Attractive demographics with over 150,000 people in the 5 mile radius

Popular National Brand

• Strong franchisee – Starcorp LLC operates 162 Hardee’s and Carl’s Jr locations across the US

• Carl Karcher Enterprises (CKE) is one of the largest national QSR concepts and has over 3,100 Hardee’s and Carl’s Jr locations

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H a r d e e ’ s1703 South Neil StreetChampaign, IL 61820

List Price ................................................................................................. $1,744,615

CAP Rate - Current .......................................................................................6.50%

Gross Leasable Area .............................................................................± 3,115 SF

Lot Size ................................................................................................ ± 1.19 Acres

Year Built .......................................................................................................... 2008

Annualized Operating DataMonthly Rent Annual Rent

Current- 6/17/18 $9,450.00 $113,400

6/18/18-6/17/23 $9,922.50 $119,070

6/18/23-6/17/28 $10,418.63 $125,023

Tenant Summary

Tenant Trade Name Hardee’s

Type of Ownership Franchisee

Lease Guarantor Starcorp HD, LLC (68 Locations)

Lease Type Fee Simple

Roof and Structure Tenant Responsibility

Original Lease Term 20 Years

Lease Commencement Date 5/29/2008

Lease Expiration Date 6/17/2028

Term Remaining on Lease ± 11 Years

Increases 5% Every 5 Years

Options Four (4), Five (5) Year Options

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Tenant: Hardee’s

Guarantor: Starcorp HD, LLC

Address: 1703 S. Neil Street, Champaign, IL 61820

Size: ± 1.19 Acres

Ownership type: Franchisee

Date of Lease: 5/29/2008

Lease Expiration: 6/17/2028

Remaining Renewal Options: ± 11 Years

Required Advance Notice of Exercise Options:

At least three (3) months but no more than nine (9) months prior to the expiration of the initial Term of this Lease or any extended Term.

Current Rent: $113,400 Base Rent + Percentage Rent

Rent Increases:

The base monthly rent will increase to $9,922.50 on 6/18/18.The base monthly rent will increase to $10,418.63 on 6/18/23.

At the First five (5) year option term, the minimum monthly rent will be Market Rate (Determined under Section 1.03 of the lease). The Second five (5) year option term will be the negotiated market rate multiplied by 1.05. The Third five (5) year option term will be the negotiated market rate multiplied

by 1.10. The Fourth five (5) year option term will be the negotiated market rate multiplied by 1.15.

Net Lease: Absolute NNN – Zero Landlord Responsibilities

Real Estate Taxes: Tenant shall pay during the Term of the Lease all of the real and personal property taxes levied or assessed against the Premises and Improvements.

Repairs and Maintenance:Tenant shall, at Tenant’s own cost and expense, keep, maintain, repair and replace the Premises including the roof, parking lot and exterior in good

condition and repair, normal wear and tear.

Insurance:Tenant shall, at its own costs and expense, keep the Premises and other improvements insured against loss by fire and all of the risks and perils

usually covered by an extended coverage endorsement.

Utilities: Tenant shall pay for all utilities and services.

Tenant Assignment and Sublet-ting:

Tenant may assign this Lease, or sublet or permit any other person to occupy, part or all of the Premises, but Tenant shall not be relieved of its obligations under this Lease.

Right of First Refusal : Landlord shall give Tenant thirty (30) days notice to match the amount of a proposed offer and terms and shall have the first option to purchase.

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Property Name Hardee’s

Parent Company Trade Name CKE Restaurants

Ownership Private

No. of Locations ± 1,950

No. of Employees ± 16,680

Headquartered St. Louis, Missouri

Website www.hardees.com

Year Founded 1960

TENANT OVERVIEWAs a subsidiary of fast food giant CKE Restaurants, Hardee’s Food Systems is a leading fast food chain operator with more than 1,900 locations in some 30 states, primarily in the Midwest and Southeast. The chain offers a variety of premium-priced Angus beef hamburgers under such names as Thickburger, Six Dollar Burger, and the Monster Thickburger. Hardee’s also serves up chicken sandwiches, salads, fries, and beverages, as well as dessert items. About 475 of the restaurants are operated by the company, while the rest are franchised.

GEOGRAPHIC OUTREACH

Since the opening of the first restaurant in Greenville, North Carolina in 1960, Hardee’s has established a strong presence throughout the Midwest and Southeast. Most locations are in the United States, distributed among some 30 states.

STRATEGY

The company’s Hardee’s chain has started to incorporate its own dual branding strategy, pairing some of its locations with Red Burrito outlets. Plans to continue expansion in international markets are underway and involve the use of franchise development agreements. CKE is targeting growth in Brazil, Canada, China, and Russia. In 2014 Carl’s Jr. announced plans to expand in Ontario, Canada’s “Golden Horseshoe,” a territory that includes Toronto, Mississauga, Oakville, Burlington, Hamilton, Brantford and London. Hardee’s chains market themselves as gourmet burger outlets with slightly higher menu prices. In lieu of rapid expansion, CKE has focused on managing costs and investing in additional marketing efforts to drive traffic to its restaurants. Its chains target primarily a young, male demographic with oversized burgers made with premium Angus beef.

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Property Name Hardee’s

Property Address 1703 South Neil Street

Champaign, IL 92056

Assessor’s Parcel Number 162-241-18-00

Site DescriptionNumber of Stories One

Year Built 2008

Gross Leasable Area (GLA) ± 3,115 SF

Lot Size ± 1.19 Acres (51,836 SF)

Type of Ownership Franchise

Parking ± 66 Suface Spaces

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University of Illinois at Urbana-Champaign

Champaign, Illinois, located in Champaign County, is the 10th most populated city in Illinois. The University of Illinois at Urbana-Champaign has a large influence on the city and has helped the city succeed throughout the years. There have been many start-up companies in the area, making Champaign a hub for Silicon Prairie. Today, the city houses many major offices for Abbott, IBM, State Farm, and other Fortune 500 companies. The most common industries within the region is Educational Services and Retail Trade. Most occupations are within training and management.

With Champaign being a college town, Downtown Champaign is a great entertainment district that has many upscale restaurants, boutiques, nightclubs, and art galleries. During the spring, Champaign houses the Boneyard Arts Festival. It is a unique four-day event that showcases a broad range of artistic work within the community.

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C h a m p a i g n d e m o g r a p h i c s

POPULATION 1 Mile 3 Mile 5 Mile

2022 Projection 16,017 111,001 154,317

2017 Estimate 15,953 109,247 150,079

2010 Census 15,855 106,223 142,724

2000 Census 15,493 100,044 125,109

Growth 2017 - 2022 0.40% 1.61% 2.82%

HOUSEHOLDS 1 Mile 3 Mile 5 Mile

2022 Projection 4,691 45,885 63,783

2017 Estimate 4,640 44,765 61,692

2010 Census 4,545 42,685 57,938

2000 Census 4,613 39,787 50,143

Growth 2017 - 2022 1.09% 2.50% 3.39%

Growth 2010 - 2017 2.10% 4.87% 6.48%

INCOME 1 Mile 3 Mile 5 Mile

2017 Est. Average Household Income

$56,324 $60,102 $65,594

University of Illinois at Urbana-Champaign

The University of Illinois at Urbana-Champaign is known for its amazing landscapes and architecture. The public research-intensive university was founded in 1867 and has helped build Champaign’s population ever since. They accept over 45,000 students and employs 30,000 full and part time employees. Over half of Champaign’s residents have a bachelor’s degree or higher, with a majority earning their degree from UIUC.

Fighting Illini, the university’s mascot, is a favorite of the city and hosts the top sporting events within the area. With a history of striving football, basketball, and baseball organizations, UIUC has built up a loyal fan base. The football team currently has 15 Big Ten Championship Football victories and 8 Bowl Game victories.

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This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Hardee’s located at 1703 South Neil Street, Champaign, IL 61820 (“Property”) . I t has been prepared by Matthews Retai l Advisors. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T

e x c l u s i v e ly l i s t e d b y

Hardee’s1 7 0 3 S o u t h N e i l S t r e e t | C h a m p a i g n , I L

™

Randy OlczykBroker on RecordLic # 471.018001

W e s l e y c o n n o l ly, M B A

Wesley.Connol ly@matthews.comDIR (949) 432-4512MOB (707) 477-7185LIC # 01962332 (CA)

Senior Associate

A l e x h a r r o l d

Associate

Alex.Harrold@matthews.comDIR (310) 919-5790MOB (310) 388-0788LIC # 02009656 (CA)