Representative Photo

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

2 SOUTH MILL STREET PRYOR, OKLAHOMA 74361

KFC | 10 Year Extension

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has beenobtained from sources we believe to be reliable. However,Marcus & Millichap has not and will not verify any of thisinformation, nor has Marcus & Millichap conducted anyinvestigation regarding these matters. Marcus & Millichap makesno guarantee, warranty or representation whatsoever about theaccuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’sresponsibility to independently confirm the accuracy andcompleteness of all material information before completing anypurchase. This Marketing Brochure is not a substitute for yourthorough due diligence investigation of this investmentopportunity. Marcus & Millichap expressly denies any obligationto conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in thisMarketing Brochure are for example only and do not representthe current or future performance of this property. The value of anet leased property to you depends on factors that should beevaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisorsshould conduct a careful, independent investigation of any netleased property to determine to your satisfaction with thesuitability of the property for your needs.

Like all real estate investments, this investment carries significantrisks. Buyer and Buyer’s legal and financial advisors must requestand carefully review all legal and financial documents related tothe property and tenant. While the tenant’s past performance atthis or other locations is an important consideration, it is not aguarantee of future success. Similarly, the lease rate for some

properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected saleswith little or no record of actual performance, or comparablerents for the area. Returns are not guaranteed; the tenant and anyguarantors may fail to pay the lease rent or property taxes, or mayfail to comply with other material terms of the lease; cash flowmay be interrupted in part or in whole due to market, economic,environmental or other conditions. Regardless of tenant historyand lease guarantees, Buyer is responsible for conducting his/herown investigation of all matters affecting the intrinsic value of theproperty and the value of any long-term lease, including thelikelihood of locating a replacement tenant if the current tenantshould default or abandon the property, and the lease terms thatBuyer may be able to negotiate with a potential replacementtenant considering the location of the property, and Buyer’s legalability to make alternate use of the property.By accepting this Marketing Brochure you agree to release Marcus& Millichap Real Estate Investment Services and hold it harmlessfrom any kind of claim, cost, expense, or liability arising out ofyour investigation and/or purchase of this net leased property.

CONFIDENTIALITY ANDDISCLAIMER

The information contained in the following Marketing Brochure isproprietary and strictly confidential. It is intended to be reviewedonly by the party receiving it from Marcus & Millichap and shouldnot be made available to any other person or entity without thewritten consent of Marcus & Millichap. This Marketing Brochurehas been prepared to provide summary, unverified information toprospective purchasers, and to establish only a preliminary levelof interest in the subject property. The information containedherein is not a substitute for a thorough due diligenceinvestigation. 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 projectedfinancial performance of the property, the size and squarefootage of the property and improvements, the presence orabsence of contaminating substances, PCB’s or asbestos, thecompliance with State and Federal regulations, the physicalcondition of the improvements thereon, or the financial conditionor business prospects of any tenant, or any tenant’s plans orintentions to continue its occupancy of the subject property. Theinformation contained in this Marketing Brochure has beenobtained from sources we believe to be reliable; however, Marcus& Millichap has not verified, and will not verify, any of theinformation contained herein, nor has Marcus & Millichapconducted any investigation regarding these matters and makesno warranty or representation whatsoever regarding the accuracyor completeness of the information provided. All potential buyersmust take appropriate measures to verify all of the informationset forth herein.

NON-ENDORSEMENTNOTICE

Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”)is not affiliated with, sponsored by, or endorsed by anycommercial tenant or lessee identified in this marketing package.The presence of any corporation’s logo or name is not intended toindicate or imply affiliation with, or sponsorship or endorsementby, said corporation of M&M, its affiliates or subsidiaries, or anyagent, product, service, or commercial listing of M&M, and issolely included for the purpose of providing tenant lesseeinformation about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASECONSULT YOUR MARCUS & MILLICHAP AGENT FOR MOREDETAILS.

Confidentiality and Disclaimer

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Generally, almost all KFC lease are NNN with

a majority of KFC stores operated by a franchisee.

The lease includes 7-8% rent increases every five (5)

years. There are some ground leases that are

generally backed by a corporate guaranty.

Most leases do contain 3 to 5, 5-year option periods.

The KFC Corporation based in Louisville, Kentucky, is one of the few brands in America that can boast a decades-long history of success and has been operating for more than 70 years. Currently, KFC operates more than 20,000 outlets, of which, around seven percent are franchisee owned.

Harland Sanders, an honorary Kentucky Colonel, founded Kentucky Fried Chicken in 1930 in the small front room of a gas station in Corbin, Kentucky. The Colonel actively started franchising in 1952. PepsiCo then acquired Kentucky Fried Chicken in 1986, and in 1997, they announced the spin-off of its quick service restaurants - KFC, Taco Bell, and Pizza Hut now known as Yum! Brands, Inc. Headquartered in Louisville, Kentucky, the KFC menu includes their popular Crispy Kentucky Grilled Chicken® and Extra Crispy™ Tenders with home-style sides, Hot Wings™ pieces and freshly made chicken sandwiches.

KFC is owned by Yum! Brands. Other QSRs under the Yum! Brands banner include Pizza Hut and Taco Bell. KFC reported 7% growth in worldwide sales in 2016. KFC plans to couple a return to the basics with a push on the digital front and delivery. Yum! Brands is ranked number 218 on the Fortune 500 list, with revenues exceeding $6 billion in 2016.

Yum! Brands, Inc. (2018 Annual Report READ HERE)

2018 was another year of celebrating and achieving milestones. It’s diverse portfolio of iconic brands generated over $49 billion in system sales and ended the year with over 48,000 global restaurants. Combined across our brands and led by over 2,000 world-class franchisees, we opened a record of eight gross new restaurants per day. Additionally, we made significant progress on our transformation commitments, having achieved our goal of becoming at least 98 percent franchised. Focus on our growth drivers, increased collaboration and a new mindset are clearly fueling improved results.

Their four growth drivers are the foundation on which our sustainable, long-term results are being built. These growth capabilities, outlined below, are the key drivers of same-store sales and net-new unit growth and serve as our guiding principles in all business decisions.

Patel Advisory Group | Marcus & Millichap

Tenant Summary

Yum! Brands, Inc. Ctd.Our four growth drivers are the foundation on which our sustainable, long-term results are being built. These growth capabilities, outlined below, are the key drivers of same-store sales and net-new unit growth and serve as our guiding principles in all business decisions.

1. Distinctive, Relevant & Easy Brands. We will innovate and elevate iconic restaurant brands people trust and champion.

2. Unmatched Franchise Operating Capability. We will recruit and equip the best restaurant operators in the world to deliver great customer experiences using our 3C approach. This includes partners who are Committed to providing consistently bold value and brand strategy. These partners are also Capable to deliver a great customer experience and operational standards. And finally, our partners have Capital — both to grow new units and modernize existing assets.

3. Bold Restaurant Development. We will drive market and franchise unit expansion with strong economics and attractive returns.

4. Unrivaled Culture & Talent. We will leverage culture and people capability to fuel brand performance and franchisee success.

I firmly believe our culture is a competitive advantage for Yum!. With culture as the driving force behind our results, I’m pleased to share the following highlights from 2018:

• Worldwide system sales growth of 5 percent, led by 6 percent growth at KFC, 6 percent at Taco Bell and 1 percent at Pizza Hut

• Same-store sales growth of 2 percent, led by 4 percent growth at Taco Bell and followed by 2 percent at KFC with Pizza Hut even for the year

• Net-new unit growth of 7 percent, including 3,021 gross unit openings, which is 389 more openings than in 2017, and the addition of 1,282 Telepizza units

• Ended the year with over 48,000 global restaurants in approximately 270 brand-country combinations

• Achieved our goal of becoming at least 98 percent franchised, with 856 company units by the end of 2018

• Core operating profit growth flat and in line with expectations

• Returned $2.4 billion of capital to shareholders through share repurchases and dividends

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PRYOR

Patel Advisory Group | Marcus & Millichap 5

Google Recently Upped Its investment $600M to total $3B in Pryor

Read More Here

The Area has been developed so that more industrial can be built |

Currently 100,000 SF Building being built

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KENTUCKY F R I ED CHI CKEN

2 S OUTH MI LL A VENUE PR Y OR , OKLA HOMA

350 Students

500 Employees

223 Employees

194 Employees

Subject Property

11,700 + VPD

8,600 + VPD

Patel Advisory Group | Marcus & Millichap 6

Roosevelt Elementary School500+ Students

Hillcrest Hospital Pryor

41 Beds

Pryor Creek Recreation Center

Pryor Junior High School

600+ Students

Pryor High School570+ Students

Lincoln Elementary School780+ Students

McDonald’s

Walgreens

Jefferson ElementarySchool 300+ Students

28,100 + VPD

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KENTUCKY F R I ED CHI CKEN

2 S OUTH MI LL A VENUE PR Y OR , OKLA HOMA

14,200+ VPD

13,500+ VPD

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Investment Overview

Marcus & Millichap is pleased to present the exclusive listing for a KFC located at 2

South Mill Street, Pryor, Oklahoma. The property consists of 2,643 square feet of

building space and is situated on 0.59 ± acres of land. The building was recently

updated to the new American Showman design.

The KFC currently has ten years remaining on the initial fifteen-year absolute triple-

net lease. The current annual rent is $56,400 and has one, five-year option

remaining.

Investment Highlights

❖ Absolute Net Lease | Zero Landlord Responsibilities

❖ New 10 Year Extension with 10% Increase in 2024

❖ Long-Term Historical Occupancy | Opened 2004

❖ Corner Lot | Signalized Intersection | 39,800 VPD Combined

❖ Over 15,300 Residents and 12,700 Employees within Seven-Miles

❖ Located Near Multiple National Tenants Including: Walgreens, Homeland,

Dollar General, O’Reilly’s, Hibbett Sports, Burger King, McDonald’s and more

❖ Located a Mile West of Hillcrest Hospital Pryor with 41 Beds

❖ Located a Near MidAmerica Industrial Park | Google Recently Invested $600M

into a Datacenter |Google’s Investment is up to $3B

Patel Advisory Group | Marcus & Millichap

3 Mile 5 Miles 7 Miles

Population

2023 Estimate 10,739 13,036 15,910

2018 Estimate 10,429 12,582 15,323

2018 Daytime Population 10,928 11,714 12,727

Households

2018 Estimate 4,079 4,848 5,864

Average Household Size 2.46 2.49 2.52

Households By Income

Average Household Income $58,704 $60,691 $61,825

Median Household Income $48,492 $50,873 $51,874

Households Expenditure

Average Retail Expenditure $63,931 $65,907 $66,595

Food $6,284 $6,476 $6,563

Demographics Summary

Population Details

In 2018, the population in your selected geography is 12,582. The population haschanged by 9.20% since 2000. It is estimated that the population in your area will be13,036.00 five years from now, which represents a change of 3.61% from thecurrent year. The current population is 48.70% male and 51.30% female. Themedian age of the population in your area is 37.85, compare this to the US averagewhich is 37.95. The population density in your area is 160.09 people per squaremile.

There are currently 4,848 households in your selected geography. The number ofhouseholds has changed by 5.87% since 2000. It is estimated that the number ofhouseholds in your area will be 5,058 five years from now, which represents achange of 4.33% from the current year. The average household size in your area is2.49 persons.

Household Details

Investment Summary

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PROPERTY DESCRIPTION

Tenant Kentucky Fried Chicken

Property Address 2 South Mill Avenue

City, State, ZIP Pryor, Oklahoma 74361

Year Built / Renovated 2004 / 2013

Building Size 2,643

Lot Size +/- 0.59 Acres

Type of Ownership Fee Simple

THE OFFERING

Purchase Price $920,000

CAP Rate 6.13%

Annual Rent $56,400

Price / SF $348.09

Rent / SF $23.64

LEASE SUMMARY

Property Type Net-Leased QSR

Tenant/Guarantor Schoenhofer Enterprises LLC

Original Lease Term Fifteen Years

Lease Commencement June 1, 2004

Lease Expiration June 30, 2029

Lease Term Remaining (10) Ten-Years

Lease Type Absolute-Net (NNN)

Options to Renew One (1), Five (5)-Year Renewal Options

Patel Advisory Group | Marcus & Millichap

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RENT SCHEDULE

Rent Increases 10% in Year 6

Current – 2024 $56,400

2024 – 2029 $62,040

Final Option (2029 – 2034) $68,244

Pricing Summary

EXCLUSIVE NET LEASE LISTING

P R E S E N T E D B Y

Frank Simcic

Associate

Associate – National Retail Group

Cincinnati Office

Tel: (513) 878-7745

Fax: (513) 878-7710

Frank.Simcic@marcusmillichap.com

License: OH SAL 2015005386

Broker of Record: Tim Speck

Darpan Patel

First Vice President of Investments

Associate Director - Net Leased Properties Group

Cincinnati Office

Tel: (513) 878-7723

Fax: (513) 878-7710

darpan.patel@marcusmillichap.com

License: OH SAL 2012000748