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HARDEE’S16020 S ROUTE 59 | PLAINFIELD, IL 60544

OFFERING MEMORANDUM

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EXCLUSIVELY LISTED BY

CONTENT

R andy Olcz ykBROKER OF RECORDLIC # 471 .018001

04 INVESTMENT SUMMARY

06 FINANCIALS

07 TENANT OVERVIEW

08 PROPERTY DETAILS

1 1 AREA OVERVIEW

Connor OlandtAssociate

Connor.Olandt@matthews.comDIR (949) 432-4504MOB (818) 618-4522LIC # 01985082 (CA)

Calv in Shor tFVP & Senior Director

Calvin.Short@matthews.comDIR (949) 432-4506MOB (310) 567-3525LIC # 01927216 (CA)

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INVESTMENT SUMMARYLong Term Investment Opportunity

• 16+ years remaining on the initial lease term

• 5% increases every 5 years – next increase is in 1.5 years

• Healthy Lease Guarantee – 68 units on the entity backing the lease

Well Positioned Property

• Located in an affluent suburb of Chicago, IL - Average Household Income is $121,137 in a 1-mile radius, and there are 165,000 people in a 5-mile radius

• Located on one of the busiest roads in the area – ±24,000 VPD

• Outparcel to Vintage Harvest Shopping Center

Popular National Brand

• Strong Franchisee – Starcorp LLC operates 162 Hardee’s and Carl’s Jr across the US

• Carl Karcher Enterprises (CKE) is one of the largest national QSR concepts and has over 3,100 Hardee’s and Carl’s Jr locations

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Lease Abstract

Tenant Trade Name Hardee’s

Lease Guarantor Starcorp HD, LLC

Address 16020 US-59, Plainfield, IL 60586

Size ± 0.91 Acres

Date of Lease 12/30/2013

Lease Expiration 12/31/2033

Years Remaining ± 16 Years

Current Rent $119,000

Rent Increases 5% Every 5 Years

Options to Renew

Tenant shall deliver written notice to Landlord at least ninety (90) days but no more than two hundred seventy (270) days prior to the expiration of the Initial Term of this Lease or any Option Period to exercise the extension of lease. If elected by Tenant to exercise any option, The Rent in the

First Option Period will be assessed by a Market Rate. After the Market Rate is assessed, the remaining Second, Third, and Fourth Option Period will have increases of 5% at the beginning of each option period.

Net Lease Absolute NNN-Zero Landlord Responsibilities

Real Estate Taxes Tenant Shall pay taxes.

Property Insurance Tenant shall, at its own cost and expense keep the Premises and other improvements insured.

Liability Insurance Tenant shall carry at its own cost and expense liability insurance.

Utilities Tenant shall promptly pay for all utilities.

Assignment and Subletting Tenant shall not assign or sublet any part of the Premises without Landord’s written consent.

Right of First Refusal Landlord shall give Tenant five (5) days notice in writing. Tenant must respond within five (5) days.

Estoppal Certificate Tenant must deliver an executed Estoppal five (5) days from notice.

Reporting Tenant shall deliver financials for the Premises to Landlord.

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HARDEE’S16020 S Route 59Plainfield, IL 60544

List Price ..................................................................................................$1,904,000

CAP Rate - Current ......................................................................................... 6.25%

Gross Leasable Area .............................................................................. ± 3,140 SF

Lot Size ................................................................................................. ± 0.91 Acres

Year Built/Remodeled .............................................................................1955/2014

Annualized Operating DataMonthly Rent Annual Rent Rent/SF Cap Rate

Current – 12/30/2018: $9,916.67 $119,000.04 $37.90 6.25%

12/31/2018 – 12/30/2023: $10,412.50 $124,950.00 $39.79 6.56%

12/31/2023 – 12/30/2028 $10,933.13 $131,197.56 $41.78 6.89%

12/31/2028 – 12/30/2033 $11,479.79 $137,757.48 $43.87 7.24%

Tenant Summary

Tenant Trade Name Hardee’s

Type of Ownership Fanchisee

Lease Guarantor StarCorp HD, LLC (68 Units)

Lease Type Fee Simple

Roof and Structure Absolute NNN

Original Lease Term 20 Years

Lease Commencement Date 12/30/2013

Lease Expiration Date 12/31/2033

Term Remaining on Lease ± 16 Years

Increases 5% Increases Every Five (5) Years

Options Four, 5-Year Options

FINANCIALS

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TENANT OVERVIEW

Property Name Hardee’s

Parent Company Trade Name CKE Restaurants

Ownership Private

No. of Locations ± 1,950

No. of Employees ± 16,680

Headquartered St. Louis, Missouri

Website www.hardees.com

Year Founded 1961

TENANT OVERVIEWAs a subsidiary of fast food giant CKE Restaurants, Hardee’s Food Systems is a leading fast food chain operator with more than 1,900 locations in some 30 states, primarily in the Midwest and Southeast. The chain offers a variety of premium-priced Angus beef hamburgers under such names as Thickburger, Six Dollar Burger, and the Monster Thickburger. Hardee’s also serves up chicken sandwiches, salads, fries, and beverages, as well as dessert items. About 475 of the restaurants are operated by the company, while the rest are franchised.

GEOGRAPHIC OUTREACH

Since the opening of the first restaurant in Greenville, North Carolina in 1960, Hardee’s has established a strong presence throughout the Midwest and Southeast. Most locations are in the United States, distributed among some 30 states.

STRATEGY

The company’s Hardee’s chain has started to incorporate its own dual branding strategy, pairing some of its locations with Red Burrito outlets. Plans to continue expansion in international markets are underway and involve the use of franchise development agreements. CKE is targeting growth in Brazil, Canada, China, and Russia. In 2014 Carl’s Jr. announced plans to expand in Ontario, Canada’s “Golden Horseshoe,” a territory that includes Toronto, Mississauga, Oakville, Burlington, Hamilton, Brantford and London. Hardee’s chains market themselves as gourmet burger outlets with slightly higher menu prices. In lieu of rapid expansion, CKE has focused on managing costs and investing in additional marketing efforts to drive traffic to its restaurants. Its chains target primarily a young, male demographic with oversized burgers made with premium Angus beef.

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PARCEL MAP

THE OFFERINGProperty Name Hardee’s

Property Address 16020 S Route 59

Plainfield, IL 60544

Assessor’s Parcel Number 06-03-21-201-019

Site DescriptionNumber of Stories One

Year Built/Remodeled 1955/2014

Gross Leasable Area (GLA) ± 3,140 SF

Lot Size ± 0.91 Acres (39,639 SF)

Type of Ownership Franchisee

Parking ± 43 Surface Spaces

PROPERTY DETAILS

Subject Property

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Subject Property

Vintage Harvest Shopping

Center

SOUTHBOUND

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Subject Property

NORTHBOUND

S. Route 59 ± 24,000 ADT

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The village of Plainfield is located in Will County, an hour outside of Chicago. Previously named Walker’s Grove, Plainfield was established in 1841. It first started as an area for cheese factories and several different mills. Once the EJ&E Railroad was constructed, the town’s population started to grow. Gradually, the village started to become a residential area, welcoming families. Today, the village is a fully functional and growing area that is family oriented. Many live Plainfield and commute to Chicago for work because of the low crime rate.

PLAINFIELD, IL

AREA OVERVIEW

POPULATION 3-Mile 5-Mile 10-Mile

2022 Projection 62,424 171,995 506,409

2017 Estimate 60,714 166,052 496,360

Growth 2017 - 2022 2.82% 3.58% 2.02%

Growth 2010 - 2017 5.36% 6.89% 3.54%

HOUSEHOLDS 3-Mile 5-Mile 10-Mile

2022 Projection 18,408 53,802 161,727

2017 Estimate 18,046 52,368 159,113

Growth 2017 - 2022 2.01% 2.74% 1.64%

INCOME 1-Mile 3-Mile 5-Mile

2017 Est. Average Household Income

$121,137 $105,023 $99,315

PLAINFIELD DEMOGRAPHICS

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Plainfield is the ideal location for today’s growing businesses. The area had a population boom at the end of the 20th century, and it has stayed steady throughout recent years. With low unemployment rates, Plainfield has the highest median household income in the area. It is also known as one of the fastest growing suburbs in the Chicagoland area.

The community has a strong belief in equally supporting corporate and small business. The most popular industries in the area are within manufacturing and retail trade. Most residents occupations consist of management and sales roles.

ECONOMY

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CHICAGO, IL

ECONOMY

Nick named “The Windy City,” Chicago is the third most populated city in the United States and the most populated city in the Midwest. The city is an international hub for finance, commerce, industry, technology, telecommunication, and transportation. O’Hare International Airport is the second-busiest airport in the world.

There is a lot going on in this city, with the rich culture, diverse people, and one-of-a-kind skyline, Chicago is a place all its own. This city holds so much history, whether it is the art on the streets, or the buildings that have a perfect mix of historic and new age.

Chicago has a large world financial center, and is the second-largest central business district in the United States. Chicago was voted 9th on the list of the world’s richest cities. It is the base for countless corporate franchises such as Walgreens, Marshall Field’s , Sears, and Crate & Barrel.

Manufacturing, printing, publishing, and food processing helps Chicago’s economy as well. Boeing moved its headquarters into Chicago in 2001 with United Airlines following in 2011.

Conventions have also been a large provider for the city in recent years. Chicago has four interconnected buildings that is the largest convention center in the nation. The city is 3rd in the nation for holding the most conventions.

W i l l i s To w e r

First named the Sears Tower, Willis Tower is the second-tallest building in the United States and the 16th-tallest building in the world. The tower is one of the most popular tourist attractions. Over a million people come to visit the building a year and see the amazing view from the observation deck. In recent years, United Airlines has become to

largest tenant in the building.

The Navy Pier is located on the Chicago shoreline of Lake Michigan. It is a great place to have some fun while seeing a different view of the city. The Pier has everything from kid attractions, restaurants, shops, and parks. There is something for everyone on

Navy Pier.

N a v y P i e r

At 100-stories, John Hancock Center is the fourth-tallest building in Chicago and the eighth-tallest building in the United States. This building has everything from restaurants, offices, and condos. This observatory has the only open-air SKyWalk and has a restaurant overlooking Lake

Michigan.

J o h n H a n c o c k C e n t e r

This public sculpture, that created by Anish Kapoor, is in the center of AT&T Plaza at Millennium Park. Nicknamed “The Bean,” it weighs just over 110 tons. It was originally created for a design competition, but it has become such a hit within the city that it has

become a landmark.

C l o u d G a t e

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This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Hardee’s located at 16020 S Route 59, Plainfield, IL 60544 (“Property”) . I t has been prepared by Matthews Real Estate Investment Services. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Real Estate Investment Services. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Real Estate Investment Services expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Real Estate Investment Services or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T

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EXCLUSIVELY LISTED BY

HARDEE’S16020 S ROUTE 59 | PLAINFIELD, IL

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R andy Olcz ykBROKER OF RECORDLIC # 471 .018001

Connor OlandtAssociate

Connor.Olandt@matthews.comDIR (949) 432-4504MOB (818) 618-4522LIC # 01985082 (CA)

Calv in Shor tFVP & Senior Director

Calvin.Short@matthews.comDIR (949) 432-4506MOB (310) 567-3525LIC # 01927216 (CA)