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Dairy Queen2421 Valwood Parkway, Farmers Branch, TX 75234

OFFERING MEMORANDUM

This Marketing Brochure contains select information pertaining to the business and affairs of Dairy Queen located at 2421 Valwood Parkway, Farmers Branch, TX 75234 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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Site Plan Map. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

DeMoGRAPHICSDemographics Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12City Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

TABLE OF CONTENTS

PReSeNteD BY

Mark CohenBroker of Record

License No. 447509

Wesley ConnollyAssociate

License No. 01962332O 310.919.5809M 707.477.7185wesley.connolly@matthews.com

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™PRICING AND FINANCIAL ANALYSIS

Wesley Connolly and Matthews Retail Advisors have been retained by the ownership to exclusively present the sale of this fee simple Dairy Queen investment property in the affluent Dallas/Fort Worth MSA market. The site is positioned in a major retail corridor, directly off Interstate Hwy 35E.

This Dairy Queen Grill and Chill is the preferred concept for the new and renovated full-service restaurants. The larger format store boasts an updated design and has a comprehensive menu selection for customers.

This location is operated by the largest DQ franchisee in Texas, Vasari, LLC. The company runs 76 units in the region and has plans for future development expansions.

The lease is absolute NNN in nature, making the investment ideal for passive income and 1031 exchanges.

If you have any questions or would like to submit an offer, please contact the listing broker Wesley Connolly.

INveStMeNt HIGHLIGHtSPROPERTy DETAILS• Dairy Queen Grill and Chill concept - full service menu• Absolute NNN - Ideal for 1031 exchanges • Established location - Operating history since 2008• Recently remodeled to new DQ concept

LOCATION• Positioned within the 4th largest U.S. MSA - Dallas/Fort Worth• Located right off Interstate Highway 35 E• Dense demographics - over 270,000 in a 5 mile radius• Ideal HH incomes - over $90,000 in a 5 mile radius

TENANT• Operated by an experienced franchisee - Vasari, LLC • Vasari operates 76 units in Texas, Oklahoma, and New Mexico• Second largest DQ franchisee; largest in Texas • Vasari has exclusive territory rights for development in the Dallas - Fort

Worth market

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Investment Overview

exeCutIve SuMMARY2421 Valwood Parkway Farmers Branch, TX 75234List Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,196,800Gross Leasable Area . . . . . . . . . . . . . . . . . . . . . . . . .3,000 SFCAP Rate - Current. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.25%year Built/Renovated . . . . . . . . . . . . . . . . . . . . . . . .1965/2008Lot Size . . . . . . . . . . . . . . . . . . . . . . . . ±0.47 Acres (20,473 SF)

ANNuALIzeD oPeRAtING DAtAMonthly Rent Annual Rent Increases CAP Rate

Current - 4/30/2018 $6,233.33 $74,800.00 10% 6.25%

5/1/2018 - 4/30/2023 $6,856.67 $82,280.00 10% 6.87%

5/1/2023 - 4/30/2028 $7,542.33 $90,508.00 10% 7.56%

Option 1 $8,296.50 $99,558.00 10% 8.31%

Option 2 $9,126.17 $109,514.00 10% 9.15%

Option 3 $10,038.83 $120,466.00 10% 10.07%

Option 4 $11,042.67 $132,512.00 10% 11.07%

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Financial Overview

teNANt SuMMARYTenant Trade Name Dairy Queen

Type of Ownership Fee Simple

Lease Guarantor Franchisee

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 20 years

Lease Commencement Date April 7th, 2008

Rent Commencement Date April 7th, 2008

Lease Expiration Date April 30th, 2028

Term Remaining on Lease 11.5+ years

Increases 10% Every 5 years

Options Four (4), Five (5) year

Property Name Dairy Queen

Property Type Net Leased Quick Service Restaurant

Parent Company Trade Name Berkshire Hathaway

Ownership Public

Credit Rating AA

Rating Agency Standard & Poor’s

Revenue $181.93 M

Net Income $37.53 M

Stock Symbol BRK.B

Board NySE

No. of Locations ±6,000

No. of Employees ±20,362

Headquartered Minneapolis, Minnesota

Web Site www.dairyqueen.com

year Founded 1938

This company is a royal figure among ice cream fans. American Dairy Queen is a leading franchisor of quick-service restaurants specializing in frozen treats, with more than 6,000 Dairy Queen outlets located throughout the US. Along with ice cream, its menu also includes burgers, hot dogs, chicken, salads, and sweet eats, including DQ cakes, pies, sundaes, cones, and Blizzard treats. The Dairy Queen chain was founded in 1938. American Dairy Queen is the domestic franchising arm of International Dairy Queen (IDQ), which also franchises DQ Orange Julius outlets and Karmelkorn popcorn stands. IDQ is owned by Warren Buffett’s Berkshire Hathaway.

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Company Overview

™PRoPeRtY DeSCRIPtIoN

tHe oFFeRINGProperty Name . . . . . . . . . . . . . . . . . . . . . . . . . . .Dairy QueenProperty Address . . . . . . . . . . . . . . . . . . 2421 Valwood Parkway

Farmers Branch, TX 75234Assessor’s Parcel Number . . . . . . . . . . . . . .24239500000010000Zoning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PD70

SIte DeSCRIPtIoNNumber of Stories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oneyear Built . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2008Gross Leasable Area (GLA) . . . . . . . . . . . . . . . . . . . . . 3,000 SFLot Size . . . . . . . . . . . . . . . . . . . . . . . ±0.47 Acres (20,473 SF)Type of Ownership. . . . . . . . . . . . . . . . . . . . . . . . . Fee SimpleParking . . . . . . . . . . . . . . . . . . . . . . . . . . ±22 Surface SpacesParking Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.3 : 1,000 SFLandscaping . . . . . . . . . . . . . . . . . . . . . . . . . . . . ProfessionalTopography. . . . . . . . . . . . . . . . . . . . . . . . . . . Generally Level

CoNStRuCtIoNFoundation . . . . . . . . . . . . . . . . . . . . . . . . . . . .Concrete SlabFraming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .WoodExterior . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BrickParking Surface . . . . . . . . . . . . . . . . . . . . . . . . . . . . .AsphaltRoof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Flat

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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 14,026 90,294 291,535

2016 Estimate 13,595 85,349 272,316

2010 Census 13,336 79,571 249,033

2000 Census 14,543 80,644 230,157

Growth 2016-2021 3.17% 5.79% 7.06%

Growth 2010-2016 1.94% 7.26% 9.35%

Growth 2000-2010 -8.30% -1.33% 8.20%

Households

2021 Projection 3,749 32,604 119,169

2016 Estimate 3,631 30,706 110,815

2010 Census 3,559 28,342 100,528

2000 Census 3,849 28,892 92,954

Growth 2016-2021 3.24% 6.18% 7.54%

Growth 2010-2016 2.01% 8.34% 10.23%

Growth 2000-2010 -7.53% -1.90% 8.15%

Income

$0 - $15,000 9.37% 8.41% 7.82%

$15,000 - $24,999 16.27% 10.32% 8.51%

$25,000 - $34,999 13.26% 10.31% 9.19%

$35,000 - $49,999 19.44% 16.45% 13.95%

$50,000 - $74,999 19.46% 19.39% 19.00%

$75,000 - $99,999 11.29% 12.66% 12.04%

$100,000 - $124,999 5.82% 7.89% 8.61%

$125,000 - $149,999 2.71% 5.39% 6.06%

$150,000 - $199,999 1.47% 4.57% 6.31%

$200,000 - $249,999 0.31% 1.87% 3.05%

$250,000 - $499,999 0.42% 2.16% 3.96%

$500,000+ 0.17% 0.58% 1.51%

2016 Est. Average Household Income $54,076 $74,467 $90,008

2016 Est. Median Household Income $43,566 $55,810 $63,859

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Demographics Report

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City Overview

FARMeRS BRANCH Farmers Branch is a city in Dallas County, Texas. It is an inner-ring suburb of Dallas and is part of the Dallas-Fort Worth metroplex. Farmers Branch is home to more than 4,000 companies and more than 250 corporate headquarters, including JDA Software, Occidental Chemical, iidon Security, Taco Bueno, SoftLayer Technologies, and Monitronics.

Farmers Branch is a dynamic powerhouse business center in North Dallas, centrally located in the Metroplex. The City is bordered by two interstate highways and two toll roads, and is less than 15 minutes from both Dallas/Fort Worth International Airport and Dallas Love Field. Added to that is the Dallas Area Rapid Transit’s Light Rail Green Line that further solidifies Farmers Branch’s reputation as a premier transportation hub for North Texas.

With a sales tax exemption, property tax rebate and other types of incentives, Farmers Branch is making it easier than ever to relocate and call Farmers Branch home. The City prides itself on providing the opportunity for a high-quality life for employees and residents.

DALLAS-FoRt WoRtH MetRoPLex

The Dallas-Fort Worth area is the fourth most-populated metropolitan area in the nation. Dallas-Fort Worth had an estimated population of 6,603,870. It is the economic and cultural hub of the region commonly called North Texas or North Central Texas and is the largest land-locked metropolitan area in the United States. It also has the fourth largest gross metropolitan product (GMP) in the United States, and approximately tenth largest by GMP in the world.

Dallas and its suburbs have one of the highest concentrations of corporate headquarters in the United States. Business management and operations is a major part of the economy. The Metroplex also contains the largest Information Technology industry base in the state. This area has a large number of corporate IT projects and the presence of numerous electronics, computing and telecommunication firms such as Texas Instruments, HP Enterprise Services, and Dell Services

The Dallas/Fort Worth International Airport, located between the cities of Dallas and Fort Worth, is the largest and busiest airport in the state of Texas. DFW is the second-largest airport in the country and the third-busiest airport in the world in terms of aircraft movements. American Airlines, based in Fort Worth, has its headquarters adjacent to DFW Airport. American, which recently regained the title as largest airline in the world in terms of passengers. Also located in Dallas, is Love Field Airport on the northwest side. Southwest Airlines is based in Dallas next to Love Field.

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Dairy Queen2421 Valwood Parkway, Farmers Branch, TX 75234

OFFERING MEMORANDUM

Mark CohenBroker of Record

License No. 447509

Wesley ConnollyAssociate

License No. 01962332O 310.919.5809M 707.477.7185wesley.connolly@matthews.com

PRICING AND FINANCIAL ANALYSISInvestment Overview and HighlightsFinancial OverviewCompany Overview

Property DescriptionProperty OverviewBird’s EyeTenant MapRegional Map

DEMOGRAPHICSDemographics ReportCity Overview