NORFOLK, NEBRASKAOFFERING MEMORANDUM

• 7+ YEAR NET LEASE • 5.25% RENT TO SALES •

• EXTENSIVE 2016 RENOVATION •

JDS Real Estate Services, Inc. | Nebraska Broker #20130457

OFFERING MEMORANDUMNORFOLK, NEBRASKA

TABLE OF CONTENTS:

Offering Summary 3

Investment Highlights 4

Location Highlights 5

Lease Summary 7

Site Plan / Parcel Map 8

Aerial Overview 9

Regional Map 10

Tenant Profile 11

Area Overview 12

Demographics 13

EXCLUSIVELY LISTED BY:

JDS Real Estate Services, Inc.whiskeycreek@jdsreservices.com844.788.4846 | NE Lic. #20130457

3

WHISKEY CREEK WOOD FIRE GRILL

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.

LOCATION

Whiskey Creek Wood Fire Grill

1021 South 13th Street

Norfolk, NE 68701

OFFERING SUMMARY

Price: $1,100,000

Current Net Operating Income (NOI): $78,000

Capitalization Rate: 7.09%

Price per Square Foot: $169

Net Rentable Area: 6,500

Year Built/Renovated: 1996/2016

Lot Size (Acres): 1.14

FINANCING SUMMARY

All Cash or Cash to New Financing

(Contact Broker for Further Details)

OFFERING SUMMARY

4

WHISKEY CREEK WOOD FIRE GRILL

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.

INVESTMENT HIGHLIGHTS

yy Single-Tenant Whiskey Creek Wood Fire Grill:

yο 10-year lease with 7+ years remaining

yο Rare 15% rent increase in May 2020

yο NNN lease, limited landlord responsibility

yο 7.09% current cap rate increasing to 8.18% in 2020

yy Newly Renovated Location: Including brand new roof (2016) with 20 year warranty, new HVAC, remodeled interiors and kitchen equipment.

yy Strong Store Sales: The property benefits from low rent-to-sales ratio of 5.25%.

yy Low Price Per Square Foot: Offered below replacement cost at $169 per square foot.

yy Strategic Location Adjacent to Sunset Plaza Mall: The subject property is located directly across from Sunset Plaza Mall, a 324,000 square foot regional mall anchored by Target, JCPenney, and Herberger’s.

yy Stable Operating History: Whiskey Creek has successfully operated at this location for over 18 years (1999).

yy Experienced Operator: The lease is guaranteed by Norfolk Steak Company, a single asset entity, and operated by the owner of the entire Whiskey Creek Wood Fire Grill franchise (8 locations).

yy Excellent Visibility and Access: The property features large pylon street frontage signage and is ideally situated directly on Johnny Carson Boulevard (Highway 81). The property benefits from over 33,000 cars per day at the intersection of Johnny Carson Boulevard and Omaha Avenue (Highway 275).

5

WHISKEY CREEK WOOD FIRE GRILL

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.

LOCATION HIGHLIGHTS

yy Strong Demographics: Average household income over $68,000 within a 5-mile radius. Norfolk’s unemployment rate of 2.7% is well below the national average of 4.4%. Nebraska ranks 4th in the United States for lowest employment rate.

yy Depreciable Asset: Sale includes both the land and building.

yy Excellent Retail Synergy: Nearby national credit tenants include Target, Walmart Supercenter, JCPenney, Hobby Lobby, Herberger’s, Menards, Hy-Vee, McDonald’s, Wells Fargo, Hibbet Sports, OfficeMax, Payless ShoeSource, Famous Footwear, Taco Bell, KFC, O’Reilly AutoParts, Arby’s, Sonic Drive-In, AutoZone, and Subway.

yy Norfolk, Nebraska:

yο Principal retail center of northeastern Nebraska serving a trade area population of over 109,000

yο Economic center for an area encompassing 6 counties. Major area employers include:

y� Nucor - 901 employees (#167 on Fortune 500; $16B+ Revenue; NYSE: NUE)

y� Faith Regional Health Center - 1,275 employees; 150 beds

y� Associated Wholesale Grocers - 654 employees

yο Home of Northeast Community College (7,000+ credit enrolled students)

y� Medtronic - 500 employees

y� Walmart - 407 employees

SURROUNDING AREA TENANTS | NOT A PART

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WHISKEY CREEK WOOD FIRE GRILL

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.

LEASE SUMMARY

LEASE SUMMARY (1)

Tenant: Whiskey Creek Wood Fire Grill

Lease Commencement: January 1, 1999

Lease Expiration: April 30, 2025

Lease Type: NNN

Net Operating Income: $78,000

Net Rentable Area: 6,500

Annual Rent Per Square Foot: $12.00

Rental Increases: 5/20 - $90,000

Renewal Options: None

Property Taxes: Tenant Responsibility

Insurance: Tenant Responsibility

Common Area Maintenance: Tenant Responsibility

Repairs & Maintenance: Tenant Responsibility

Roof (2): Tenant Responsibility

Structure: Landlord Responsibility

NOTES

(1) All lease provisions to be independently verified by Buyer during the Due Diligence Period.

(2) Tenant responsible for all roof repair, maintenance and replacement during lease term.

8

WHISKEY CREEK WOOD FIRE GRILL

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.

SITE PLAN / PARCEL MAP

N

JOH

NN

Y CA

RSO

N B

OU

LEVA

RD

SIGN

SUBJECT PROPERTY PROPERTY PARCEL APN: 590041053

9

WHISKEY CREEK WOOD FIRE GRILL

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.

AERIAL OVERVIEW

SUBJECTPROPERTY

2016 DEMOGRAPHICS

Population:1-Mile Radius 7,5043-Mile Radius 28,6065-Mile Radius 32,969

Household Income:1-Mile Radius $56,9283-Mile Radius $68,9735-Mile Radius $69,778

N

SUNSET PLAZA MALL

33,000 CPD- INTERSECTION -

- 324,000 SF; 45 TENANTS -

TRADE AREA POPULATION OVER 109,000

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WHISKEY CREEK WOOD FIRE GRILL

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.

REGIONAL MAP

SUBJECTPROPERTY

N

NEBRASKA RANKS #5 IN US FOR LOWEST UNEMPLOYMENT RATE

11

WHISKEY CREEK WOOD FIRE GRILL

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.

TENANT PROFILE

Whiskey Creek Wood Fire Grill is a fast-casual steak restaurant chain. Whiskey Creek features grilled menu items cooked over a hardwood fire of oak and ash. The restaurant’s famous wood-fire grill combined with their own proprietary seasonings, rubs, and sauces gives their food a unique and award-winning flavor. The menu offers steak, barbeque, pasta, sandwiches, burgers, and salads. Whiskey Creek was the first chain restaurant in America to feature source-verified beef, and continues to serve their customers high quality, moderately priced meals. Currently, there are 8 locations throughout Kansas, Missouri, Nebraska, and South Dakota.

Jim Gardner, owner and president of Whiskey Creek, became the 2nd largest stockholder in Wild West, Inc. the parent company of Whiskey Creek. Whiskey Creek was founded in 1995 by Florida restaurateur Larry Terrell. Merchant's Capital Corporation was the primary stockholder and together with it's partners, moved Whiskey Creek to the heart of beef country in Kearney, Nebraska in 1996, where it is now headquartered. After 5 years as a major stockholder, Gardner purchased all of the outstanding stock of Wild West, Inc. in 2001, and became the sole owner of all Whiskey Creek Wood Fire Grill.

Company Type: PrivateLocations: 8Website: www.whiskeycreek.com

12

WHISKEY CREEK WOOD FIRE GRILL

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.

Norfolkyy Located in Northeast Nebraska in Madison County in the Elkhorn River Valley

yο 112 miles northwest of Omaha, 121 miles north of Lincoln, and 75 miles southwest of Sioux City, Iowa

yy Economic center for an area encompassing 6 counties

yy Basic economic activities of Norfolk are agriculture and manufacturing yο Manufacturing employs over 4,059 personsyο 4th largest retail area in Nebraska, and a manufacturing hub with over 44 plants

yy 2.8% (nationwide 4.4%) unemployment rate, one of lowest in the country

yy “Top 100 Places to Live” and #2 ranking in the “Top 10 Places to Work” in America by CNN Magazine

DEVELOPMENTS

yy Blackberry Heightsyο Will encompass 90 acres of prime real estate in the desirable area of northwest Norfolkyο The first phase will include single-family and higher density townhouse developmentyο It is anticipated that lots will be available spring of 2018

yy Meadow Ridge Expansionyο The expansion of Meadow Ridge will lead to a continual opening of residences over the next 2-3 years;

the expansion includes 18 duplex units and 7 single-family lots

yy Majestic Lakeyο Recently approved subdivision; large-lot lake development will have 30 new homes when completed

yy Fountain Point Development Project Medical Office Building and Heritage Senior Housing yο Located in southwest Norfolkyο The first phase of the project includes a 70,000 square foot medical office complex and a senior living

community facility called The Heritage at Fountain Pointyο The Heritage at Fountain Point

y� $14 million senior housing project featuring 64 assisted living apartments and 24 classified for memory support

y� Construction is scheduled to begin next spring and is slated to open in summer of 2019; the facility is expected to bring 60 new jobs to the area

FOUNTAIN POINT DEVELOPMENT

AREA OVERVIEW

NORFOLK ARTS CENTER

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WHISKEY CREEK WOOD FIRE GRILL

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.

DEMOGRAPHICS

1-Mile 3-Mile 5-MilePopulation

2021 Projection 7,277 29,047 33,4252016 Estimate 7,504 28,606 32,9692010 Census 7,499 28,646 33,0762000 Census 8,005 28,375 32,918

Households2021 Projection 3,076 12,028 13,6922016 Estimate 3,132 11,718 13,3632010 Census 3,090 11,585 13,2382000 Census 3,245 10,991 12,607Growth 2010-2016 1.36% 1.15% 0.94%

2016 Est. Population by Single-Classification RaceWhite Alone 5,940 24,836 29,052 Black or African American Alone 178 501 521 American Indian and Alaska Native Alone 171 412 438 Asian Alone 82 300 307 Native Hawaiian and Other Pacific Islander Alone 8 14 13 Some Other Race Alone 889 1,899 1,965 Two or More Races 235 647 675

2016 Est. Population by Ethnicity (Hispanic or Latino)Hispanic or Latino 1,567 3,587 3,709 Not Hispanic or Latino 5,937 25,019 29,260

2016 Est. Average Household Income $56,928 $68,973 $69,778

The information contained herein does not purport to provide a complete or fully accurate summary of the Property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information which prospective buyers may need or desire. All financial projections are based on assumptions relating to the general economy, competition, and other factors beyond the control of the Owner and Broker and, therefore, are subject to material variation. This Marketing Package does not constitute an indication that there has been no change in the business or affairs of the Property or the Owner since the date of preparation of the information herein. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective buyers.

Neither Owner nor Broker nor any of their respective officers, Agents or principals has made or will make any representations or warranties, express or implied, as to the accuracy or completeness of this Marketing Package or any of its contents, and no legal commitment or obligation shall arise by reason of the Marketing Package or its contents. Analysis and verification of the information contained in the Marketing Package is solely the responsibility of the prospective buyer, with the Property to be sold on an as is, where-is basis without any representations as to the physical, financial or environmental condition of the Property.

Owner and Broker expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or terminate discussions with any entity at any time with or without notice. Owner has no legal commitment or obligations to any entity reviewing this Marketing Package or making an offer to purchase the Property unless and until such sale of the Property is approved by Owner in its sole discretion, a written agreement for purchase of the Property has been fully delivered, and approved by Owner, its legal counsel and any conditions to the Owner’s obligations thereunder have been satisfied or waived.

This Marketing Package and its contents, except such information which is a matter of public record or is provided in sources available to the public (such contents as so limited herein called the Contents), are of a confidential nature. By accepting this Marketing Package, you unconditionally agree that you will hold and treat the Marketing Package and the Contents in the strictest confidence, that you will not photocopy or duplicate the Marketing Package or any part thereof, that you will not disclose the Marketing Package or any of the Contents to any other entity (except in the case of a principal, who shall be permitted to disclose to your employees, contractors, investors and outside advisors retained by you, or to third-party institutional lenders for financing sought by you, if necessary, in your opinion, to assist in your determination of whether or not to make a proposal) without the prior authorization of the Owner or Broker, and that you will not use the Marketing Package or any of the Contents in any fashion or manner detrimental to the interest of the Owner or Broker.

CONFIDENTIALITY AGREEMENT

NORFOLK, NEBRASKA

EXCLUSIVELY LISTED BY:

JDS Real Estate Services, Inc.whiskeycreek@jdsreservices.com844.788.4846 | NE Lic. #20130457