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FREE STANDING CARL’S JR. SANTA FE SPRINGS, CALIFORNIA EXCLUSIVE INVESTMENT OFFERING

FEATURES: • • • • •

Carl’s Jr. Corporate Guaranteed Ground Lease Absolute NNN Ground Lease – No Management Responsibilities Long Term Lease with 9% Minimum Increases Every 3 Years Interstate 5 Freeway Location at Carmenita On/Off-Ramp 174,000 Cars Per Day on Interstate 5 & Carmenita

Jon Selznick Pacific Commercial Investments, Inc. 3700 Campus Drive, Suite 201A Newport Beach, California 92660 Phone (949) 723-5800 | Fax (949) 723-5801 jon@pacificnnn.com www.pacificnnn.com The above information is for reference purposes only, is approximate, and is subject to change. It is not guaranteed as to its accuracy or completeness. Buyer should conduct its own independent investigation and consult an attorney. As of January 2009.


FREE STANDING CARL’S JR. SANTA FE SPRINGS, CALIFORNIA CONFIDENTIALITY This is a confidential marketing profile (the "Profile") intended solely for your limited use and benefit in determining whether you desire to express further interest in purchasing the "Property", located in Santa Fe Springs, California. This Profile has been prepared by Pacific Commercial Investments, Inc. ("PCI") on behalf of the owner of the Property (the "Owner") and has been reviewed by representatives of the Owner. It contains select information pertaining to the Property and does not purport to be an all-inclusive representation of the state of affairs of the Property, or to contain all the information, which prospective investors may require. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and PCI. The information contained herein was obtained from third parties, and it has not been independently verified by PCI. Prospective investors should have the experts of their choice inspect the Property and verify all information. PCI is not qualified to act as or select experts with respect to legal, tax, environmental, building construction, soils-drainage or other such matters. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. Neither the Owner nor PCI, nor any of their respective directors, officers, affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy of completeness of this Profile or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Profile or use of its contents. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers on the subject Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Profile. The Owner shall have no legal commitment or obligation to any entity reviewing this Profile or making an offer on the Property unless and until written agreement(s) for the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner's obligations therein have been satisfied or waived. By receipt of this Profile, you agree that this Profile and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Profile or any of its contents to any other entity without prior written authorization of the Owner or PCI. You also agree that you will not use this Profile or any of its contents in any manner detrimental to the interest of the Owner or PCI. PCI reserves the right to submit the Property to additional clients on terms that may or may not be identical to the terms contained herein. By receipt of this Profile, you acknowledge that competing interests may develop in connection with offers on the Property, and waive any conflict of interest that might arise as a result thereof. In such case, PCI expressly disclaims any obligation to advance the interest of any client at the expense of any other client who may receive this Profile. Dealings with each client shall remain strictly confidential and in no case will PCI disclose the terms of any actual or potential offer to any competing client.

The above information is for reference purposes only, is approximate, and is subject to change. It is not guaranteed as to its accuracy or completeness. Buyer should conduct its own independent investigation and consult an attorney. As of January 2009.


FREE STANDING CARL’S JR. SANTA FE SPRINGS, CALIFORNIA THE INVESTMENT This freestanding single tenant retail investment property presents an investor the opportunity to own the leased fee interest in a corporate Carl’s Jr. Ground Lease with CPI increases every 3 years. (Next Scheduled Increase December 2009) This Carl’s Jr. Ground lease provides an investor with a rapidly increasing income stream far greater than most single tenant retail investment properties. By owning the leased fee interest, an investor completely avoids any hassle related to tenant management and positions themselves for significant upside at lease expiration. Situated on approximately 24,829 square feet of land, the subject property benefits from its ideal positioning adjacent to the Santa Ana (I-5) Freeway, where over 174,000 cars pass daily, providing exceptional exposure to the subject tenant. The key differentiator of the subject property within the marketplace is the CPI increases occurring every three years. Typical comparable single tenant retail investment properties in the same asset class usually only have increases every five years. Since lease inception, the subject property has averaged an astounding 11% rental increase every 3 years, providing exceptional growth to the income stream and equity value. Furthermore, the next scheduled rental increase will occur on December 2009, providing an investor with a minimum 9% increase to their income stream in less than a year. Additionally, the following increase will occur in December 2012, providing an investor with two significant increases in only four years of ownership.

The above information is for reference purposes only, is approximate, and is subject to change. It is not guaranteed as to its accuracy or completeness. Buyer should conduct its own independent investigation and consult an attorney. As of January 2009.


FREE STANDING CARL’S JR. SANTA FE SPRINGS, CALIFORNIA LOCATION Carl’s Jr. is strategically located at the southeast corner of Firestone Boulevard and the Santa Ana (I-5) Freeway/Carmenita Boulevard southbound on/off-ramps where over 174,000 cars pass daily along the Santa Ana (5) Freeway. Situated on approximately 24,829 square feet of land, the subject property boasts high freeway visibility with ample frontage and signage, as well as convenient on/offramp access for passing freeway traffic. Adjacent to the subject property is an Arco/Am Pm and a Dynasty Suites hotel providing a constant flow of consumer traffic for the subject tenant. Other nearby tenants include: 76 Gas, Jack in the Box, and Lowes.

TRADE AREA DEMOGRAPHICS The City of Santa Fe Springs is located within Los Angeles County and spans roughly 8.9 square miles. In 2008, there were approximately 207,806 people within a 3-mile radius of the subject property and 604,213 people within a 5-mile radius. The average household income for 2008 was $76,236 within a 3-mile radius and $77,608 within a 5-mile radius of the subject property. Due to its close proximity to industrial and business districts, in 2008 the subject property had a total daytime population of over 209,000 people within a 3-mile radius and over 560,000 people within a 5-mile radius. This dense Orange County in-fill location coupled with the Santa Ana (I-5) Freeway exposure makes the subject property a can’t miss location in comparison to many alternative investments in outlying areas.

3-MILE RADIUS PROFILE

5-MILE RADIUS PROFILE

2008 Population:

207,806

2008 Population:

604,213

2008 Households:

59,565

2008 Households:

187,692

2008 Total Daytime Population:

209,761

2008 Total Daytime Population:

561,188

2008 Avg HH Income:

$76,236

2008 Avg HH Income:

$77,608

* Demographic information obtained from multiple sources. Please contact PCI to obtain detailed information. The above information is for reference purposes only, is approximate, and is subject to change. It is not guaranteed as to its accuracy or completeness. Buyer should conduct its own independent investigation and consult an attorney. As of January 2009.


FREE STANDING CARL’S JR. SANTA FE SPRINGS, CALIFORNIA INVESTMENT INFORMATION PROPERTY INFORMATION: Address:

13500 Firestone Boulevard, Santa Fe Springs, CA 90670 (View Map)

Tenant:

Carl Karcher Enterprises, Inc.

Occupancy:

100%

Year Built:

1998

Land:

Approx. 24,829 Square Feet

Improvements:

Approx. 2,328 Square Feet

Construction:

Wood Frame & Stucco

APN:

7005-014-049

FINANCIAL INFORMATION: Price:

$1,600,000

Capitalization Rate:

5.47%

Terms:

All Cash or Cash to New Loan

ANNUAL OPERATING INFORMATION: Current

12/1/2009*

12/1/2012*

$87,500

$95,375

$103,959

Plus Recapture:

NNN

NNN

NNN

Gross operating Income:

$87,500

$95,375

$103,959

Less Reserves:

NNN

(NNN)

(NNN)

Net Operating Income:

$87,500

$95,375

$103,959

5.47%

5.96%

Scheduled Gross Income:

Capitalization Rate:

6.5%

* Based upon the minimum rental increase of 9% every three years (according to formula, the rental increase can be between 9% and 16.5% every three years).

The above information is for reference purposes only, is approximate, and is subject to change. It is not guaranteed as to its accuracy or completeness. Buyer should conduct its own independent investigation and consult an attorney. As of January 2009.


FREE STANDING CARL’S JR. SANTA FE SPRINGS, CALIFORNIA RENT ROLL TENANT

SUITE SQ. FT.

LEASE START

LEASE END

MONTHLY RENT

ANNUAL RENT

Carl’s Jr.

2,328

Dec-1997

Nov-2017

$7,291.66

$87,500

TOTALS

2,328

$7,291.66

$87,500

RENTAL INCREASES

RENEWAL OPTIONS

LEASE TYPE

CPI Every 3 Years 2 (5 Year) & Absolute 9% Min – 16.5% Max 1 (54 Month) NNN

The above information is for reference purposes only, is approximate, and is subject to change. It is not guaranteed as to its accuracy or completeness Buyer should conduct its own independent investigation and consult an attorney. As of January 2009.


FREE STANDING CARL’S JR. SANTA FE SPRINGS, CALIFORNIA AERIAL PHOTO – INTERSECTION VIEW

The above information is for reference purposes only, is approximate, and is subject to change. It is not guaranteed as to its accuracy or completeness Buyer should conduct its own independent investigation and consult an attorney. As of January 2009.


FREE STANDING CARL’S JR. SANTA FE SPRINGS, CALIFORNIA LOCATION MAP

The above information is for reference purposes only, is approximate, and is subject to change. It is not guaranteed as to its accuracy or completeness Buyer should conduct its own independent investigation and consult an attorney. As of January 2009.


FREE STANDING CARL’S JR. SANTA FE SPRINGS, CALIFORNIA LOCATION MAP

The above information is for reference purposes only, is approximate, and is subject to change. It is not guaranteed as to its accuracy or completeness Buyer should conduct its own independent investigation and consult an attorney. As of January 2009.


FREE STANDING CARL’S JR. SANTA FE SPRINGS, CALIFORNIA PARCEL MAP

The above information is for reference purposes only, is approximate, and is subject to change. It is not guaranteed as to its accuracy or completeness. Buyer should conduct its own independent investigation and consult an attorney. As of January 2009.


FREE STANDING CARL’S JR. SANTA FE SPRINGS, CALIFORNIA TENANT SUMMARY

Founded in 1941 by Carl Karcher and listed on the New York Stock Exchange (NYSE) since 1994, CKE Restaurants, Inc. (NYSE: CKR), through its subsidiaries, is the proud owner, operator, and franchisor of over 3,000 quick-service and fast casual restaurants, serving 43 U.S. States, and 13 Countries around the world. CKE’s Carl’s Jr. brand has over 1,100 locations primarily in California and the Western United States, and averages approximately $1.44 Million in annual sales per restaurant.

CKE Highlights: • • • • • •

CKE Annual Revenue Carl’s Jr. Average Annual Store Revenue (Second to only McDonald’s amongst competitors) 7-year average increase in Average Annual Store Revenue (Highest amongst competitors) CKE Total Assets Total Shareholder’s Equity CKE Earnings before Taxes

$1.59 Billion $1.44 Million 34% ($362,000) $786 Million $251 Million $82.1 Million

* Source: CKE web site

The above information is for reference purposes only, is approximate, and is subject to change. It is not guaranteed as to its accuracy or completeness. Buyer should conduct its own independent investigation and consult an attorney. As of January 2009.


BR - Carl's Jr. Grounds Lease - Santa Fe Springs, CA