Krispy Kreme Doughnuts Ground Lease

A Net Lease Investment OpportunityConfidential Offering Memorandum

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Woodstock, GA

The information contained in this Offering Memorandum is confidential, furnished solely for the purpose of review by a prospective purchaser of 9420 Highway 92, Woodstock GA (the “Property”) and is not to be used for any other purpose or made available to any other person without the express written consent of The Net Lease Group, LLC. (“NLG”). The material is based in part upon information supplied by Owner and in part upon information obtained by The Net Lease Group from sources it deems reasonably reliable. Summaries of any documents are not intended to be comprehensive or all inclusive but rather only an outline of some of the provisions contained therein. No warranty or rep-resentation, expressed or implied, is made by Owner, The Net Lease Group, or any of their respective affiliates as to the accuracy or completeness of the information contained herein or any other written or oral communication transmitted to a prospective purchaser in the course of its evaluation of the Property. No legal liability is assumed or implied in connection with the information or such other communications. Without limiting the generality of the foregoing, the information shall not be deemed a representation of the state of affairs of the Property or constitute an indication that there has been no change in the business or affairs of the Property since the date of preparation of the information. Prospective purchasers should make their own projections and conclusions without reliance upon the materials contained herein and conduct their own independent due diligence, including engineering and environmental inspections, to determine the condition of the Property and the existence of any potentially hazardous material located at the site. This Offering Memorandum was prepared by The Net Lease Group and has been reviewed by the Owner. It contains select information pertaining to the Property and does not purport to be all inclusive or to contain all of the information which a prospective purchaser may desire. All financial projections are provided for general reference purposes only and are based on assumptions relating to the general economy, competition and other factors beyond control and, therefore, are subject to material change or variation. An opportunity to inspect the Property will be made available to qualified prospective purchasers. In this Offering Memorandum, certain documents and other materials are described in summa-ry form. The summaries do not purport to be complete nor, necessarily, accurate descriptions of the full agreements involved, nor do they constitute a legal analysis of such documents. Interested parties are expected to independently review all documents. This Offering Memorandum is subject to prior placement, errors, omissions, changes or with-drawal without notice and does not constitute a recommendation, endorsement or advice as to the value of the Property by The Net Lease Group or the Owner. Each prospective purchaser is to rely upon its own investigation, evaluation and judgment as to the advisability of purchasing the Property described herein. This Offering Memorandum is subject to prior placement, errors, omissions, changes or with-drawal without notice and does not constitute a recommendation, endorsement or advice as to the value of the Property by The Net Lease Group or the Owner. Each prospective purchaser is to rely upon its own investigation, evaluation and judgment as to the advisability of purchasing the Property described herein. This Offering Memorandum is the property of The Net Lease Group and may be used only by parties approved by The Net Lease Group and Owner. The Property is privately offered and, by accepting delivery of this Offering Memorandum, the party in possession hereof agrees (i) to return it to The Net Lease Group immediately upon request of The Net Lease Group or Owner and (ii) that this Offering Memorandum and its contents are of a confidential nature and will be held and treated in the strictest confidence. No portion of this Offering Memorandum may be copied or otherwise reproduced or disclosed to anyone without the prior written authorization of The Net Lease Group and Owner. The terms and conditions set forth above apply to this Offering Memorandum in its entirety.

CONFIDENTIALITY & RESTRICTED USE AGREEMENT

EXCLUSIVELY MARKETED BYRick RossSenior Director404.551.2011rross@thenetleasegroup.com

Esmael HillManaging Principal404.551.2068ehill@thenetleasegroup.com

Maxwell SchlesingerAssociate404.551.2013mschlesinger@thenetleasegroup.com

3350 Riverwood Parkway, Suite 700Atlanta, GA 30339

thenetleasegroup.com

TABLE OF CONTENTS

Executive Summary............................1 The Offering Investment Highlights

Financial Overview.............................3 Offering & Financial Summary

Tenant Overview.................................4

Property Overview.............................6 Site & Market Aerials

Market Overview...............................13

Demographics...................................14

The Net Lease Group exclusively presents the opportunity to acquire approximately 1.01 acres on Highway 92 in Woodstock, GA, ground leased to Krispy Kreme Doughnuts Corporation (“KKD”). When completed, Krispy Kreme will occupy and operate a newly constructed 2,830 SF dine-in restaurant with drive-thru. KKD executed an absolute net (NNN) 15-year ground lease with two (2) 5-year options to renew. The landlord has no responsibilities, whatsoever during the term and option periods. Rental escalates 10% every five (5) years through the primary term and option periods

The offering consists of a fee simple interest in 1.01 acres ground leased to KKD which provides an investor with the opportunity to own an institutional quality asset one hundred percent (100%) leased to an investment grade company that provides a dependable and predictable income throughout the lease term.

EXECUTIVE SUMMARY

THE OFFERING

PURCHASE PRICE: $2,022,500CAP RATE: 4.45%

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EXECUTIVE SUMMARYINVESTMENT HIGHLIGHTS

Institutional Quality Tenant

Private German investment giant, JAB Beech, acquired Krispy Kreme, Inc. July 2016 for $1.35 billion cash, taking the company private. It now conducts business as Krispy Kreme Doughnuts Corporation. KKD operates over 1,150 franchised and corporately owned locations in 28 countries. Krispy Kreme, Inc. reported 2015 sales of $519 M. Industry analysts estimate 2016 Krispy Kreme Doughnuts Corporation sales at approximately $535 M. The Ground Lease (§30.(b)) requires KKD, upon landlord’s written request (not more than once a year) to provide the latest 12-month income statement and balance sheet.

New Long-Term Lease

15-year ground lease which commences October 1, 2017 and expires September 2032 with two (2) 5-year options to renew.

New Construction

Anticipated construction completion, November 2017. Term and rent commence October 1, 2017.

Absolute Net Ground Lease

The Landlord has no responsibilities whatsoever. The Tenant pays all expenses including but not limited to all taxes, maintenance, insurances, repairs and other expenses related to operating the property.

Strategic Location with Signalized Left-hand Turn Access

Located in the highly sought-after Woodstock, GA submarket in North Metro-Atlanta, the subject property benefits from easy left-hand turn access to and from Highway 92 via the signalized intersection with Parkway 575, adjacent to the property. This location takes advantage of strong demographics including a population of 64,000 people earning an average annual income over $82,000 per household within 3 miles of the site, well above the national average. 2

FINANCIAL OVERVIEW

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TENANT OVERVIEW

Considered one of the most desirable doughnuts in the world, Krispy Kreme Doughnuts Corporation (KKD), a global company based in Winston Salem, NC, has the vision of being “the worldwide leader in sharing delicious tastes and creating joyful memories.” It operates as a branded international retailer and wholesaler offering only the highest quality coffee, doughnuts, and other sweets. Its ‘Hot Now’ signs are a popular fixture and purchase generator that keeps customers coming back to get them by the dozens.

The doors to Krispy Kreme first opened back in 1937 when founder Vernon Rudolph purchased the “secret” recipe and rented a building to make and sell them - initially to grocery stores. From that humble beginning, KKD has opened its doors in 28 countries with a combination of owned and franchised retail stores, while creating its own signature coffee blend. The Krispy Kreme brand has helped create and maintain special bonds with their customers with their one of a kind taste and their breadth of appeal.

Krispy Kreme, Inc. recently became a privately held company when private German investment firm JAB Beech purchased the corporation in mid 2016 for $1.35 billion and now conducts business as Krispy Kreme Doughnuts Corporation. KKD operates over 1,150 franchised and corporately owned locations in 28 countries.

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TENANT OVERVIEWJAB Holding Company (“JAB” or Joh. A. Benckiser), a principal investment firm headquartered in Luxembourg, focuses on investments in companies with premium brands in the consumer goods category. Until 2012, JAB’s minority stake in the household and healthcare company Reckitt Benckiser (RB), owner of healthcare/hygiene brands such as Lysol, Mucinex, Gaviscon and Clearasil served as the predominant asset in the portfolio, and the main dividend contributor. Since the 5% block RB disposition in May 2012, and subsequent acquisitions of Peet’s Coffee & Tea, Caribou Coffee, cosmetics maker, Coty, Inc. and iconic shoe brands Jimmy Choo, and Bally, JAB’s portfolio performance has progressively improved. With the merger between Coty Inc. and Procter & Gamble (P&G) Specialty Beauty Business, in early October 2016, JAB’s portfolio mainly consists of:

• An 8% minority stake (following successive share divestments) in Reckitt Benckiser (RB) (A+/Stable/A-1).

• A minority stake in the beauty and personal care company Coty Inc. (BB+/Stable/--), becoming 36% of the merged P&G Specialty Beauty Business. • In July 2016, JAB-controlled JAB Beech acquired US doughnut shop operator, Krispy Kreme Doughnuts, Inc., for $1.35 billion

• A majority ownership (58%) in Acorn Holdings B.V., the umbrella entity for Jacobs Douwe Egberts (JDE) (BB/Stable/--) and the coffee company Keurig Green Mountain (BB-/Stable/--).

Through is wholly owned US subsidiary, JAB Beech, JAB operates a substantial US coffee and breakfast business which includes brands, Krispy Kreme Doughnuts Corp, Einstein Noah (Bagels), Peet’s Coffee & Tea, Caribou Coffee, as well as wholesale roasters, Stumptown

Coffee Roasters, and Intelligentsia.

In October 2016, less than three months after it closed on the acquisition of Krispy Kreme, JAB Beech announced the launch of a new co-branded breakfast concept, Coffee & Bagels featuring Caribou coffee and Einstein Bagels.

Three senior partners oversee JAB investments: Peter Harf, Bart Becht and Olivier Goudet, together with 8 other partners who focus on business development, finance, legal, tax, and human resources.

JAB actively manages its investments. and operates offices in Europe and the US (Luxembourg, London, Mannheim, Germany and Washington DC).

JAB carries a solid investment grade credit rating (Baa1 at Moody’s with stable outlook and BBB+ at S&P with stable outlook). JAB Holdings B.V. (a wholly owned subsidiary of JAB) has issued public bonds listed on the Euro MTF Market of the Luxembourg Stock Exchange.

JAB has built the second-largest investment portfolio within the rated European sector, with a market value at about €19 billion ($20.5 billion USD) as of Oct. 27, 2016, per analyst estimates.

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PROPERTY OVERVIEW

The newly constructed 2,830 SF Krispy Kreme Doughnuts restaurant sits on 1.01 +/- acres, well located on the south side of Highway 92, a quarter mile east of the I-575 northbound off ramp in Woodstock, GA, about 30 miles north of Atlanta. Highway 92 (ADT 59,000) provides access to the surrounding commercial area and connects I-575 with downtown Woodstock and the surrounding communities. Georgia DOT will soon complete construction of multiple express lanes on I-575 through Cherokee County to accommodate increased traffic generated by continued population growth and expanding commercial development. The Property includes an existing double-faced billboard, highly visible from Highway 92. The Ground Lease allows KKD to use the both sides of the sign as advertising to drive business to its location. The Subject Property sits along the market’s main retail/commercial strip. Highway 92, a major Metro-Atlanta east-west thoroughfare, connects Bartow, Cherokee, Cobb, Fulton and Gwinnett Counites. Several national retailers surround the subject property including Sam’s Club, BJ’s Wholesale Club, Home Depot, Lowe’s, Target, Kohl’s, Publix, and Kroger. Restaurants include Chick-fil-A, IHOP, Dunkin’ Donuts, Starbucks, Waffle House, Steak ‘n Shake, McDonald’s, Ruby Tuesday, and many others. The surrounding market within a three-mile radius supports approximately 65,000 people with an average household income exceeding $82,000 annually.

Doughnuts Coming Soon 6

GA HWY 92 EASTBOUND

*NOT TO SCALE

KRISPY KREMEBILLBOARD

PROPERTY OVERVIEW

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GA HWY 92 EASTBOUND

*NOT TO SCALE

4-WAY INTERSECTION

KKD MONUMENT SIGN

PAR

KW

AY 575

KRISPY KREME

BILLBOARD

ACCESS TO HWY 92

PROPERTY OVERVIEW

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SITE AERIAL PROPERTY OVERVIEW

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MARKET AERIALPROPERTY OVERVIEW

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MARKET AERIAL CLOSEUPPROPERTY OVERVIEW

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SITE AERIAL WITH TRAFFIC COUNTS

PROPERTY OVERVIEW

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MARKET OVERVIEW2016 CHEROKEE COUNTY RETAIL

MARKET AREA HIGHLIGHTS

Woodstock is a city located in southern Cherokee County, Georgia, United States. Originally a stop on the Louisville and Nashville Railroad, Woodstock is part of the Atlanta metropolitan area. In 2007 it was the tenth fastest-growing suburb in the United States. Today, the City of Woodstock is the fastest growing city in Cherokee County. With the growth rate of Woodstock at 70% over the past 10 years, the city has doubled in size. With Interstate 575 and State Highway 92 running diagonally and directly through the heart of Woodstock, there are unlimited possibilities for those who live and work in Woodstock and Cherokee County.

Cherokee County always has a number of projects underway to drive success in the region. Recent development projects in the area include Canton Marketplace a retail center operated by The Sembler Company that is conveniently located just off I-575 at the southeast corner of Northside Parkway and Cumming Highway, Canton Marketplace is home more than 40 fabulous shopping, dining and service destinations. Woodstock’s most recent retail venture is the Outlet Shoppes at Atlanta which is the closest outlet center to downtown Atlanta, located just 30 miles north of the city. The Outlet Shoppes at Atlanta is North Atlanta’s premier shopping destination with recognized national tenants such as Saks Fifth Avenue OFF 5th, Kate Spade New York, Michael Kors, Nike, Cole Han, and Tommy Hilfiger.

Cherokee County’s most recent expansion has been their regional airport. Cherokee County Regional Airport recently completed a $34 million award winning expansion that now accommodates corporate jets. Expanding to over 5,000 linear feet and is able to accommodate larger aircraft and corporate jets. The airport terminal is a luxurious and hospitable location for flight crews to relax and rest between flights. The Cherokee County Airport Authority also plans to purchase an additional 17 acres to accommodate seven additional hangars. This $34 million project was awarded the General Aviation Project of the Year by the Georgia Airports Association, recognizing the airport helps support the economic development demands of Cherokee County and the region.

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DEMOGRAPHICS

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EXCLUSIVELY MARKETED BY

3350 Riverwood Parkway, Suite 700Atlanta, GA 30339

thenetleasegroup.com

Representative Photo

Rick RossSenior Director404.551.2011rross@thenetleasegroup.com

Esmael HillManaging Principal404.551.2068ehill@thenetleasegroup.com

Maxwell SchlesingerAssociate404.551.2013mschlesinger@thenetleasegroup.com