Church's Chicken 6410 19th Street Lubbock TX...Church’s Chicken For more than 60 years, Church’s Chicken has been one of the largest quick service restaurant chicken chains in

C h u r c h ’ s C h i c k e n , L u b b o c k , T X | Church’s Chicken6 4 1 0 1 9 t h S t r e e t | L u b b o c k , T X

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

™• Strong Corporate Guarantee

• 15 Year NNN Lease

• Next to Texas Tech University

• New Construction

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C h u r c h ’ s C h i c k e n , L u b b o c k , T X |

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E X E C U T I V E S U M M A R Y

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K y l e M at t h e w sBROKER OF RECORD

LIC # 678067

c h a d k u r z

SVP & National Director

[email protected] (214) 692-2927MOB (562) 480-2937LIC # 01911198

C a lv i n S h o r t

FVP & Senior Director - STNL


J a k e S e i j a s

Associate

Jake.Sei [email protected] (310) 919-5776MOB (415) 847-0566LIC # 01974332

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• Corporate guarantee with Church’s Chicken parent company, Cajun Global, LLC

• Brand new 15-year absolute NNN lease

• 7.50% rent increases every 5 years

• Brand new, high-quality construction

• Church’s Chicken has over 1,700 in more than 30 countries

• Store Sales for Church’s Chicken in America are in excess of $850,000,000

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P r o p e r t y & L E a s e

• Property is located in Lubbock, TX – A thriving university city which is home to Texas Tech University

• Texas Tech University has over 35,000 students

• Texas Tech University has seen 8 consecutive years of record enrollment

• Over the past decade, enrollment is up ± 30%

• Ideal location off of busy street with traffic counts of close to 10 million vehicles per year

• Strong demographics with nearly 150,000 people in a 5-mile radius with consistent growth

• Income tax-free state in the booming Texas economy

• Located about 1-mile away from Lubbock Christian University with enrollment of ± 2,000 students

• Strong retail synergy, located between CVS and Academy Sports and next to new O’Reilly Auto Parts

• Property is located off of the same street as Texas Tech’s southern entrance

S T R O N G S U R R O U N D I N G D E M O G R A P H I C S

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C h u r c h ’ s C h i c k e n6410 19th StreetLubbock, TX 79407

List Price ................................................................................................................... $1,672,727

CAP Rate - Current ......................................................................................................... 5.50%Gross Leasable Area .............................................................................................± 3,500 SF Lot Size ............................................................................................................... ± 0.55 Acres Year Built .............................................................................................................................. 2016

Annualized Operating DataMonthly Rent Annual Rent Rent/SF Cap Rate

June 1, 2016 $7,666.67 $92,000.00 $40.00 5.50%

June 1, 2021 $8,241.67 $98,900.00 $43.00 5.91%

June 1, 2026 $8,859.79 $106,317.50 $46.23 6.36%

Option 1 $9,524.28 $114,291.31 $49.69 6.83%

Option 2 $10,238.60 $122,863.16 $53.42 7.35%

Option 3 $11,006.49 $132,077.90 $57.43 7.90%

Option 4 $11,831.98 $141,983.74 $61.73 8.49%

Tenant Summary

Tenant Trade Name Church’s Chicken

Type of Ownership Fee Simple

Lease Guarantor Corporate

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 15 Years

Lease Commencement Date September 14, 2015

Rent Commencement Date April 6, 2016

Lease Expiration Date April 5, 2031

Term Remaining on Lease 15 Years

Increases 7.50% Every 5 Years

Options Four (4), Five (5) Year

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C h u r c h ’ s C h i c k e n , L u b b o c k , T X | 9

C h u r c h ’ s C h i c k e n

For more than 60 years, Church’s Chicken has been one of the largest quick service restaurant chicken chains in the world. Founded in Texas by George W. Church, Sr., in 1952, Church’s Chicken is now an international brand and one of the fastest growing chicken franchises worldwide. In addition to its famous fried chicken, Church’s offers a diverse menu that includes chicken wings and sandwiches as well as fried okra and jalapeño cheese bombers as side dishes. A big hit with customers is Church’s unique Honey Butter Biscuits, which are hand-made from scratch. With their dedication to providing affordable and flavorful home-style chicken meals in a business model proven to be efficient and profitable, Church’s Chicken offers highly attractive franchise opportunities for entrepreneurs.

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Company Name Church’s Chicken

Ownership Private

Parent Company Trade Name Friedman Fleischer & Lowe

No. of Locations ± 1,700

Headquartered Sandy Springs, GA

Website www.churchs.com

Year Founded 1952

C h u r c h ’ s e x p a n s i o n

Church’s chicken is about to undergo a large-scale domestic 10-year expansion. Some of the new markets slated for this expansion include multiple restaurants in the Nashville, Knoxville, and Chattanooga areas with another 10-restaurant deal expected to follow in 2021. Leaders have estimated that the real estate construction and design value will be more than a $40 million investment. In 2017, Church’s Chicken is also looking to expand about 80-100 units in the international market. Church’s Chicken is also looking at more non-traditional locations such as airports, bus stops, and malls.

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Property Name Church’s Chicken

Property Address 6410 19th Street

Lubbock, TX 79407

Assessor’s Parcel Number R143268

Zoning C-3

Site DescriptionNumber of Stories OneYear Built 2016Gross Leasable Area (GLA) ± 3.500 SFLot Size ± 0.55 Acres (24,106 SF)Type of Ownership Fee SimpleParking Asphalt

Parking Ratio 12 : 1,000 SF

Landscaping Professional

Topography Generally Level

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19th Street ± 25,000 AD

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l u b b o c k d e m o g r a p h i c s

POPULATION 1 Mile 3 Mile 5 Mile

2022 Projection 13,676 66,253 166,238

2017 Estimate 12,596 61,413 155,379

2010 Census 11,367 55,190 140,559

2000 Census 8,656 46,974 120,302

Growth 2017 - 2022 8.57% 7.88% 6.99%

HOUSEHOLDS 1 Mile 3 Mile 5 Mile

2022 Projection 5,604 27,492 65,225

2017 Estimate 5,174 25,419 60,766

Growth 2017 - 2022 8.31% 8.15% 7.34%

INCOME 1 Mile 3 Mile 5 Mile2017 Est. Average Household Income $59,796 $60,776 $66,501

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T e x a s t e c h u n i v e r s i t yTech Tech University is a public institution located in the heart of Lubbock. Texas tech has a total undergraduate enrollment of 29,237. TTU has emerged as one of the top public university systems in the nation and is a dynamic force in higher education. Today, the TTU System consists of four component institutions and operates at multiple campuses and academic sites across state and globe.

Lubbock has grown into a vibrant and bustling city. While many things have changed since its incorporation in 1909, one thing has remained the same: Lubbock continues to be known for the charm and hospitality of its people.

Today Lubbock is the crossroads of culture in West Texas. It is the hub of art exhibits, award-winning wineries, live music, theatrical performances and more. Thanks to its thriving and increasingly diverse art and culture scene, Lubbock attracts millions of visitors each and every year.

Museums like the Buddy Holly Center and the West Texas Walk of Fame, attract thousands of visitors each year from across the world and are lasting proof of the thriving musical talent developing in Lubbock. The other museums in Lubbock, such as the American Wind Power Museum, the National Ranching Heritage Center, the Museum of Texas Tech University or the Silent Wings Museum, all tell a unique story that grasps the attention of visitors and take you on a journey through history.

l u b b o c k , T e x a s


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Subject Property

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Church’s Chicken located at 6410 19th Street, Lubbock, TX 79407 (“Property”) . I t has been prepared by Matthews Retai l Advisors. 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 Retai l Advisors. 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 Retai l Advisors 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 Retai l Advisors 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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Church’s Chicken6 4 1 0 1 9 t h S t r e e t | L u b b o c k , T X

™

K y l e M at t h e w sBROKER OF RECORD

LIC # 678067

c h a d k u r z

SVP & National Director


C a lv i n S h o r t

FVP & Senior Director - STNL


J a k e S e i j a s

Associate

Jake.Sei [email protected] (310) 919-5776MOB (415) 847-0566LIC # 01974332

11-2-2015

TYPES OF REAL ESTATE LICENSE HOLDERS: A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker. A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.

A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): Put the interests of the client above all others, including the broker’s own interests; Inform the client of any material information about the property or transaction received by the broker; Answer the client’s questions and present any offer to or counter-offer from the client; and Treat all parties to a real estate transaction honestly and fairly.

A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:

AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner's agent must perform the broker’s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer’s agent.

AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer's agent must perform the broker’s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by the seller or seller’s agent.

AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligations as an intermediary. A broker who acts as an intermediary: Must treat all parties to the transaction impartially and fairly; May, with the parties' written consent, appoint a different license holder associated with the broker to each party (owner and

buyer) to communicate with, provide opinions and advice to, and carry out the instructions of each party to the transaction. Must not, unless specifically authorized in writing to do so by the party, disclose:

ᴑ that the owner will accept a price less than the written asking price;ᴑ that the buyer/tenant will pay a price greater than the price submitted in a written offer; andᴑ any confidential information or any other information that a party specifically instructs the broker in writing not to

disclose, unless required to do so by law.

AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.

TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: The broker’s duties and responsibilities to you, and your obligations under the representation agreement. Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.

LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker’s services. Please acknowledge receipt of this notice below and retain a copy for your records.

Information About Brokerage Services Texas law requires all real estate license holders to give the following information about

brokerage services to prospective buyers, tenants, sellers and landlords.

.

Designated Broker of Firm License No. Email Phone

Licensed Supervisor of Sales Agent/Associate

License No. Email Phone

Licensed Broker /Broker Firm Name or Primary Assumed Business Name

License No. Email Phone

Regulated by the Texas Real Estate Commission Information available at www.trec.texas.gov IABS 1-0

Date Buyer/Tenant/Seller/Landlord Initials

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Documents

Church's Chicken 6410 19th Street Lubbock TX...Church’s Chicken For more than 60 years, Church’s Chicken has been one of the largest quick service restaurant chicken chains in