C O L L I E R S I N T E R N AT I O N A L | 3 PA R K P L A Z A , S U I T E 1 2 0 0 | I R V I N E , C A 9 2 8 1 4 | S N Y D E R / C A R LT O N T E A M

1602 State Highway 37, Massena, NY 13662

SINGLE TENANT ABSOLUTE NNN GROUND LEASELow downside Risk - Potential to Increase Rent - Significant Upside Opportunity

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Table Of Contents

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. This publication is the copyrighted property of Colliers International and /or its

licensor(s) 2015. All rights reserved

Property Summary

Lease Abstract

Investment Highlights

Aerial Overview

Tenant Overview

Massena, NY

Regional Map

Demographics

Daytime Population Map

Household Income Map

Confidentiality Agreement

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We are pleased to offer to qualified investors an absolute NNN investment fully leased

to Taco Bell in the city of Massena, NY. The property is located on approximately 1.00

acres of land and is positioned as an outparcel to the St. Lawrence Centre, which is a

shopping mall managed by Carlyle Development Group. There are approximately 44

stores with 4 anchor tenants, totaling over 550,000 SF of GLA. Taco Bell has operated

at this location since 1993. There are approximately 3.5 years remaining with 3 - 5

Year option periods. There are 10% rental increases each option. The current rent is

$44,450 per annum, which is significantly below market rent. Moreover, annualized

sales at this location average over $900,000 per year, representing a very healthy

4.9% rent-to-sales ratio.

The Taco Bell brand is the world’s largest fast food mexican chain and is owned by

YUM Brands (NYSE: YUM). Headquarted in Irvine, CA, Taco Bell surpassed $9 Billion

in system sales in 2015 across approximately 6,400 stores. YUM brands currently

has a market value of approximately $34 Billion and employs over 303,000 people.

In 2014, YUM was listed #216 on the Fortune 500 list as well as being ranked #3 on

the World’s most admired companies in the food services industry. This is a unique

opportunity to acquire an established, proven Taco Bell investment at a low price with

an absolute NNN lease structure (zero landlord obligations), below market rent and

attractive 10% increases.

Property Summary

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List Price $745,000

NOI $44,450

CAP Rate 5.95%

Annual Rent $44,450

Operating Expense

Taxes NNN

Insurance NNN

CAM NNN

Net Operating Income $44,450

Pricing

Operating Expense Data

Lease Abstract

Tenant Trade Name: Taco Bell Restaurant

Lease Commencement November 01, 1993

Lease Expiration October 31, 2018

Lease Term 25 Years

Term Remaining On Lease 3.5 Years

Base Rent $44,450

Rent PSF $22.35

Rental Adjustments 10% Rent Bumps Every 5 Yrs.

Option Periods

3 - 5 Year Options 10% Increases Every Option

11/01/2018 $48,895.00 11/01/2023 $53,784.50 11/01/2028 $59,162.95

Right of First Refusal No

Lease Type Absolute NNN Ground Lease

Roof And Structure Tenant Responsible

Lease Summary

Property Details

Parcel 405889-010-031-0003-002

Building Area 1,989 SF

Land Area 43,560 SF (1 Acre)

Land Use Fast Food Franchise

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W E N D Y ’ S | P. 5

Global Brand

• Taco Bell Corporation - Subsidiary of YUM Brands (NYSE: YUM)

• World’s Largest Fast Food Mexican Chain - Over 6,400 Locations

• YUM Brands Market Value Apprx $34 Billion - Ranked #216 on Fortune 500 List

• Ranked #3 on World’s Most Admired Companies in Food Service Industry

• Surpassed $9 Billion in Top Line Revenues - Employs over 300,000 People

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Absolute NNN Lease

Absolute NNN Ground Lease - Zero Landlord Obligations

Approximately 3.5 Years Remaining with 3 - 5 YR Options - 10% Increases Each Option

Generates Average Sales Over $900,000 / YR - Approximate 4.9% RTS

Currently Paying $22.35 PSF / YR - Significantly Below Market - Low Downside Risk

Low downside Risk - Potential to Increase Rent - Significant Upside Opportunity

1,989 Square Feet on Approximately 1.00 Acres of Land

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Ideal 1031 Exchange Opportunity

• Absolute NNN Lease Structure - Zero Landlord Obligations - Coupon Clipper

• Investment Grade Tenant - Taco Bell Corp - Subsidiary of YUM Brands (NYSE: YUM)

• Significantly Below Market Rent - 10% Rental Increase At Next Option

• Established, Proven Taco Bell Location - Outparcel to Shopping Mall

• Excellent Rent to Sales Coverage - Approximately 4.9% - Big Upside

• Free and Clear of Existing Debt - Take Advantage of Low Interest Rates

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NY-37

MAIL RD.

MAIL RD.

SMITH RD.

Massena, NYHome of America’s Seaway Locks

37

Aerial Overview

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Outparcel to Shopping Mall

• Outparcel to St. Lawrence Centre - Over 550,000 SF of GLA

• Tenants include JCP, Bon-Ton, Ollie’s, BJ’s and Taco Bell

• Located Directly Along Route 37, Near Intersection of Route 37 & Route 131

• Situated Along Primary Ingress/Egress To Shopping Mall - Excellent Access

• Directly Adjacent to Massena International Airport

• Massena, NY - Near Canadian Border - North New York

Massena, NYHome of America’s Seaway Locks

NY-37

N. RAQUETTE RIVER RD.

MAIN ST.

MASSENA INTERNATIONAL AIRPORT

INDUSTRIAL

37

37

Aerial Overview

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Taco BellYum! Brands, Inc., (NYSE: YUM)

Taco Bell Corporation is a California-based fast service restaurant chain that specializes in Mexican-style fast food. Taco Bell, with 2004 combined company and franchisee sales reaching $5.7 billion dollars, holds the largest share of the Mexican-style restaurant market in the United States. More than 35 million consumers visit a Taco Bell each week and over 80 percent of its 6,500 locations are franchised. The company, with restaurants in Canada, Guam, Aruba, Dominican Republic, Chile, Costa Rica, Guatemala, Puerto Rico, Ecuador, Hawaii, Asia, and Europe, operates as a subsidiary of YUM! Brands Inc., the largest restaurant company in the world.

Yum! Brands, Inc.Yum! Brands, Inc., (NYSE: YUM), based in Louisville, Kentucky, is one of the world’s largest restaurant companies with nearly 43,000 restaurants in more than 130 countries and territories. Yum! Brands is ranked #228 on the FORTUNE 500 list with revenues of more than $13 billion in 2015 and is named one of the Aon Hewitt Top Companies for Leaders in North America. Our restaurant brands – KFC®, Pizza Hut® and Taco Bell® – are the global leaders of the chicken, pizza and Mexican-style food categories.

Since their spin-off from PepsiCo in 1997, Yum! Brands has become a truly global company going from approximately 20 percent of profits coming from outside the U.S. to almost 65 percent in 2015. Yum! Brands, Inc. is the worldwide leader in emerging markets with more than 16,500 restaurants, nearly twice as many as the nearest competition. With about 2.5 restaurants per million people in the top 10 emerging markets, compared to 57 restaurants per million in the U.S., we are on the ground floor of global growth.

NYSE: YUM

Exchange: NYSE (US Dollar)

Price: $79.98

Volume 3,497,506

Market Cap 32.59B

05/23/2016 - 1:48PM

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Massena, NYOverlooking the great St. Lawrence River in northernmost New York State, Massena was the fastest-growing commercial and industrial center in St. Lawrence County during the 20th century. From the development of Alcoa operations in 1902, to the arrival of the St. Lawrence Centre Mall and the wide spread of nearby shopping facilities in the 1980’s and 1990’s, Massena firmly established itself as St. Lawrence County’s center for commercial, industrial and manufacturing progress throughout the past century, and thus attracting folks to the community from throughout northern New York and southeastern Canada. In addition to a large base of employment opportunities, Massena offers several tourist attractions such as the St. Lawrence Seaway, St. Lawrence-Franklin D. Roosevelt Power Project, the Robert Moses State Park and other recreational facilities. Now into the 21st century and the new millennium, Massena stands ready to assist in improving its current commercial base while welcoming new and compatible business and industry.

EconomyThe economy of early Massena was partly based on health spas, but the modern town is involved in power production, aluminum production at ALCOA, and the commerce of the St. Lawrence Seaway.

Massena is home to an Alcoa Aluminum plant, the longest continually operating aluminum facility in the world, and a former Reynolds Metals Company plant, now called Alcoa East (temporarily idled in July 2009). Alcoa currently employs over 1100 people at its facilities in Massena, making it one of the largest private employers in New York north of Syracuse, contributing over $340 million annually to the area’s economy.

The New York Power Authority also operates a hydroelectric power generating dam, the St. Lawrence-FDR Power Project, on the St. Lawrence River adjacent to Massena. Curran Renewable Energy manufactures wood pellet fuel and mulch in the town.

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St. Lawrence CentreThe St. Lawrence Centre is a shopping mall in Massena, New York managed by Carlyle Development Group. There are approximately 44 stores with 4 anchor tenants, totaling over 550,000 SF of GLA.

Anchor stores include The Bon-Ton, and J.C. Penney.

Regional Map

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Demographics

Population 3-MILE 5-MILE 7-MILE

Estimated Population (2015) 7,184 14,580 17,353

Projected Population (2020) 7,186 14,528 17,339

Households 3-MILE 5-MILE 7-MILE

Estimated Households (2015) 3,065 6,254 7,350

Projected Households (2020) 3,089 6,272 7,390

Income 3-MILE 5-MILE 7-MILE

Avg. Household Income (2015) $47,237 $52,567 $52,516

Median Household Income (2015) $38,681 $40,958 $41,011

Business Facts 3-MILE 5-MILE 7-MILE

Total # of Businesses (2015) 319 763 841

Total # of Employees (2015) 3,205 6,933 7,632

$$$

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W E N D Y ’ S | P. 1 5

Population Density

Approximately 14,528 Residents

Within a 5-Mile Radius

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Median Household Income

Average Household Income of $52,567

Within a 5-Mile Radius

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This Offering Memorandum contains select information pertaining to the business and affairs of Taco Bell, Massena, NY 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 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, 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 Taco Bell, Massena, NY 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.

Colliers International | 3 Park Plaza, Suite 1200 | Irvine, CA 92814 | Snyder/Carlton Team

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. This publication is the copyrighted property of Colliers International and /or its licensor(s) 2015. All rights reserved

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T H E S N Y D E R C A R L T O N T E A M | W W W. T H E N N N E T W O R K . C O M

For More Information Contact:

Jereme SnyderExecutive Vice President

License No. 01360233949.724.5552

jereme.snyder@colliers.com

Eric CarltonSenior Vice PresidentLicense No. 01809955

949.724.5561eric.carlton@colliers.com

John SharpeSenior Associate

License No. 01800769949.724.5546

john.sharpe@colliers.com