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El Pollo Loco2822 W University Dr, Denton, TX 76201

OFFERING MEMORANDUM

Representative Photo

This Marketing Brochure contains select information pertaining to the business and affairs of El Pollo Loco located at 2822 W University Dr, Denton, TX 76201 here to referred to as “Property”. Information in this Marketing Brochure is confidential and provided solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose and may not be made available to any other person without the written consent of the Seller or Matthews Retail Group, Inc.

This Marketing Brochure has been prepared by Matthews Retail Group, Inc. (also known as Matthews Retail Advisors) based in part upon information supplied by the Seller and in part upon financial information obtained from sources deemed reliable by Matthews Retail Group, Inc. However, Matthews Retail Group, Inc. has not and will not verify any of this information, nor has Matthews Retail Group, Inc. conducted any investigation regarding these matters. Matthews Retail Group, Inc. makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

It is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for the Buyer’s thorough due diligence investigation of this investment opportunity. Matthews Retail Group, Inc. expressly denies any obligation to conduct a due diligence examination of this Property for the Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this Property. The value of a net leased property to the Buyer depends on factors that should be evaluated by the Buyer and their tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any property to determine to their satisfaction the suitability of the Property for their investment goals.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the Property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future performance.

Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the Property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the Property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the Property, and Buyer’s legal ability to make alternate use of the Property.

By accepting this Marketing Brochure you agree to release the Seller and Matthews Retail Group, Inc. of any and all liability and hold the parties harmless from any kind of claim, cost, or expense arising out of your investigation and/or purchase of this Property.

NON-ENDORSEMENT NOTICEMatthews Retail Group, Inc. is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this Marketing Brochure. 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 Matthews Retail Group, Inc., its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Matthews Retail Group, Inc., and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

CONFIDENTIALITY & DISCLAIMER STATEMENT

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PRICING AND FINANCIAL ANALYSISInvestment Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Financial Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Company Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

PROPERTY DESCRIPTIONProperty Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Bird’s Eye . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Tenant Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Regional Map. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

DEMOGRAPHICSDemographics Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11City Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

TABLE OF CONTENTS

PRESENTED BY

Mark CohenBroker of Record

License No. 447509

Gary ChouVP & Director

License No. 01911222O 310.919.5827M 714.928.8016gary.chou@matthews.com

Kevin ChangAssociate

License No. 01976724O 310.919.5828M 951.616.8918kevin.chang@matthews.com

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™PRICING AND FINANCIAL ANALYSIS

INVESTMENT HIGHLIGHTS

EXTREMELY SECURE LEASE

• Corporate Ground Lease - The income over the next 20 years is backed by over 400 units and $355MM in annual sales - Incredibly secure property!

• Tenant Invested Site - As a ground lease, tenant picked this location and invested in the construction of this site - Motivated to stay for the long term!

• Pride of Ownership - This property was built in 2016 allowing owner to purchase a newly constructed site with a brand new lease

• Publicly Traded Company - Headquartered in Costa Mesa, CA, El Pollo Loco (NASDAQ: LOCO) has a market cap of over $504MM and employs over 5,100 people in Nevada, Arizona, Utah, Texas and California

IDEAL RETAIL PROPERTY

• Located in Denton’s Retail Hub - Rayzor Ranch Town Center (opening starting in 2016) will be 600,000 SF of shopping, dining, and entertainment; Additional new 70,000 SF convention center and 300-room, 11-story Embassy Suites hotel currently under construction, set to open in Q4 of 2017

• Strong Traffic Counts - This site benefits from over 24,000 VPD on 2822 W University Dr and 81,000 VPD on Interstate 35

• Excellent Retail Synergy - This property is outparceled to a Sam’s Club and Walmart, with other surrounding retail including Chili’s, Cracker Barrel, McDonald’s, Chevron, RaceTrac, Kohl’s, Petco, Panera Bread, Whataburger, Chick-fil-A, Starbucks, Guitar Center and more

• Closest Retail Area to Nearby Universities - This shopping area is ideally situated to bring traffic from both the University of North Texas (2.1 Miles) and Texas Woman’s University (2.7 Miles): Over 59,000 college students in the nearby area

• Robust Job Market - Peterbilt Motors Headquarters (2,100 employees), Sally Beauty Supply International Headquarters (950 employees), WinCo Food’s 800,000 SF distribution facility (165 employees), and two regional health centers Texas Health Presbyterian Hospital Denton and Denton Regional Medical Center (2,000+ employees)

• Income Tax Free State - Texas is an income tax free state - Huge benefit to those also living in an income tax free state

RETAIL FRIENDLY DEMOGRAPHICS

• Double Digit Growth - Between 2010-2016, the surrounding area has experienced explosive population growth - 13% in a 1-mile, 10% in a 3-mile and 11% in a 5-mile radius; There is strong projected growth over the next 5 years with 9% growth in a 1-mile, 7% growth in a 3-mile and a 8% growth in a 5-mile

• Healthy Household Income - Average household income in a 1-mile radius is 65,000, 3-mile radius is 51,000 and 5-mile radius is 62,000

• Strong Population Counts - The area services over 105,000 people in a 5-mile radius year round

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Investment Overview

EXECUTIVE SUMMARY2822 W University Dr Denton, TX 76201List Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,000,000Gross Leasable Area . . . . . . . . . . . . . . . . . . . . . . . . ±2,800 SFCAP Rate - Current. . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.50%Year Built . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2016Lot Size . . . . . . . . . . . . . . . . . . . . . . . . ±1.23 Acres (53,490 SF)

ANNUALIZED OPERATING DATAMonthly Rent Annual Rent Rent/SF CAP Rate

2016-2021 $11,250.00 $135,000 $48.21 4.50%

2021-2026 $12,375.00 $148,500 $53.04 4.95%

2026-2031 $13,612.50 $163,350 $58.34 5.45%

2031-2036 $14,973.75 $179,685 $64.17 5.99%

Option 1: 2036-2041 $16,471.13 $197,654 $70.59 6.59%

Option 2: 2041-2046 $18,118.24 $217,419 $77.65 7.25%

Option 3: 2046-2051 $19,930.06 $239,161 $85.41 7.97%

Option 4: 2051-2056 $21,923.07 $263,077 $93.96 8.77%

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Financial Overview

TENANT SUMMARYTenant Trade Name El Pollo Loco

Type of Ownership Ground Lease

Lease Entity Type Corporate

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 20 years

Lease Commencement Date 2016

Rent Commencement Date Q4 2016

Lease Expiration Date Q4 2036

Term Remaining on Lease 20.00 years

Increases 10% Every 5 Years

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

Property Name El Pollo Loco

Property Type Net Leased Quick Service Restaurant

Parent Company Trade Name El Pollo Loco Holdings, Inc.

Ownership Public

Revenue $355.06M

Net Income $24.05M

Stock Symbol LOCO

Board NASDAQ

No. of Locations ±430

No. of Employees ±5,171

Headquartered Costa Mesa, CA

Web Site www.elpolloloco.com

Year Founded 1980

Juan Francisco Ochoa started the chain in Mexico in 1975. In 1980, the very first American El Pollo Loco opened on Alvarado Street in Los Angeles where El Pollo Loco quickly became a local favorite. While a lot has changed over the past few decades, El Pollo Loco’s commitment to fresh, authentically prepared food has not.

El Pollo Loco Holdings operates and franchises about 430 fast-casual restaurants operating under the El Pollo Loco banner, of which about 250 are operated by franchisees. Specializing in Mexican-style chicken dishes, the chain’s menu includes chicken burritos and tacos, as well as complete chicken dinners and sides. Most El Pollo Loco outlets are found in the Los Angeles area and other markets in California; however a small number can be found in four other states. El Pollo Loco is owned by private equity firm Trimaran Capital and filed to go public in 2014.

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Company Overview

™PROPERTY DESCRIPTION

THE OFFERINGProperty Name . . . . . . . . . . . . . . . . . . . . . . . . . . El Pollo LocoProperty Address . . . . . . . . . . . . . . . . . . . 2822 W University Dr Denton, TX 76201Assessor’s Parcel Number . . . . . . . . . . . . . . . . . . . . . . 683878

SITE DESCRIPTIONNumber of Stories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . OneYear Built . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2016Gross Leasable Area (GLA) . . . . . . . . . . . . . . . . . . . . . ±2,800 SFLot Size . . . . . . . . . . . . . . . . . . . . . . . ± 1.23 Acres (53,490 SF)Type of Ownership. . . . . . . . . . . . . . . . . . . . . . . . . Fee SimpleLandscaping . . . . . . . . . . . . . . . . . . . . . . . . . . . . ProfessionalTopography. . . . . . . . . . . . . . . . . . . . . . . . . . . Generally Level

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Property Overview

PROPERTY DESCRIPTION

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Bird’s Eye

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Tenant Map

PROPERTY DESCRIPTION

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Regional Map

™DEMOGRAPHICS

Population 1-Mile 3-Mile 5-Mile

2021 Projection 2,935 48,994 105,269

2016 Estimate 2,700 46,200 97,952

2010 Census 2,417 42,901 89,015

2000 Census 2,069 39,146 77,068

Growth 2016-2021 8.72% 6.05% 7.47%

Growth 2010-2016 11.72% 7.69% 10.04%

Growth 2000-2010 16.82% 9.59% 15.50%

Households

2021 Projection 1,237 19,674 41,514

2016 Estimate 1,127 18,330 38,291

2010 Census 989 16,627 34,221

2000 Census 847 15,564 29,870

Growth 2016-2021 9.82% 7.33% 8.42%

Growth 2010-2016 13.88% 10.24% 11.89%

Growth 2000-2010 16.80% 6.83% 14.57%

Income

$0 - $15,000 11.83% 25.73% 18.97%

$15,000 - $24,999 9.06% 14.57% 12.26%

$25,000 - $34,999 9.29% 10.01% 10.41%

$35,000 - $49,999 12.11% 12.24% 13.40%

$50,000 - $74,999 27.38% 16.11% 16.51%

$75,000 - $99,999 12.98% 8.42% 10.62%

$100,000 - $124,999 6.93% 4.75% 6.55%

$125,000 - $149,999 4.24% 3.34% 4.18%

$150,000 - $199,999 3.64% 2.89% 3.71%

$200,000 - $249,999 1.59% 0.92% 1.46%

$250,000 - $499,999 0.82% 0.68% 1.33%

$500,000+ 0.13% 0.33% 0.59%

2016 Est. Average Household Income $65,931 $51,232 $62,435

2016 Est. Median Household Income $57,036 $34,691 $44,354

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Demographics Report

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City Overview

DENTON, TEXASDenton is a principal city in the state of Texas and the county seat of Denton County. Just north of Dallas, Denton boasts a vibrant community with attractions for every age. Main Street is located next to the city’s historic courthouse and features unique shops, numerous dining options, and a variety of museums, galleries, and art venues.

Home to several annual artistic and cultural events, Denton is known for its active music life. The annual North Texas State Fair and Rodeo began in 1928 and continues to promote the cowboy culture of Texas.

The education services, health and social services, manufacturing and general retail sectors employ over 20,000 people in Denton.

TOP EMPLOYERS - DENTON COUNTY1. University of North Texas

2. Denton Independent School District

3. Walmart

4. Peterbilt Motors Co

5. Lewisville Independent School District

6. Northwest Independent School District

7. Nebraska Furniture Mart

8. Texas Women’s University

9. Denton County

10. Denton State School

841 Apollo Street, Suite 150 | El Segundo, CA 90245 | www.matthews.com™

El Pollo Loco2834 2822 W University Dr, Denton, TX 76201

OFFERING MEMORANDUM

Mark CohenBroker of Record

License No. 447509

Gary ChouVP & Director

License No. 01911222O 310.919.5827M 714.928.8016gary.chou@matthews.com

Kevin ChangAssociate

License No. 01976724O 310.919.5828M 951.616.8918kevin.chang@matthews.com