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Cheddar’s Ground Lease AFFLUENT HOUSTON SUBURB OVERSIZE PARCEL – ONLY $15/SF • Price: $1,917,000 – 6.00% Cap Rate • 15-Year NNN Ground Lease • Corporate Guarantee • High-Growth (37%) – $110K+ Incomes • Soon to Open • Sugar Land, Texas For more information, please contact:

In Association with:

Robert C. Sanner Partner/Broker 415-677-0439 [email protected]

Richard M. Sanner Senior Associate 415-677-0429 [email protected]

LIC #00869657

LIC # 01792433

Scott Weaver Rubicon Realty Group, LLC Texas Licensee LIC # 6008815

www.ctbtnnn.com The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.

Sugar Land, Texas

Cheddar’s Casual Cafe LOCATION

University Boulevard and Bonaventure Way, Sugar Land, Texas. A southwest suburb of Houston. The property fronts on Highway 6, on the south side.

LOT SIZE

Approximately 2.9 acres – 126,324+/- square feet. •

IMPROVEMENTS

Under construction, to be completed November 2011, a 8,374+/- square feet freestanding CHEDDAR’S CASUAL CAFE with 170(!) parking spaces onsite. •

GROUND LEASE

ANNUAL INCOME

Only the land is for sale.

The improvements are owned by CHEDDAR’S CASUAL CAFE. The improvements are not for sale.

Ground leased to CHEDDAR’S CASUAL CAFE for 15 years from November 2011 until November 2026. The initial annual rent of $115,000 increases by 5% every five years throughout the primary lease term. The lease is absolute net with tenant responsible for all taxes, insurance, and maintenance including roof, walls and foundation. There are no landlord obligations. There are four 5-year renewal options with 7% rent increases each option period.

YEARS 1-5 6-10 11-15 16-20 (Option 21-25 (Option 26-30 (Option 31-35 (Option

1) 2) 3) 4)

PRICE

$1,917,000 – 6.00% Cap Rate

PRICE PER SQUARE FOOT (LAND ONLY)

$15 – Land Only

ANNUAL RENT $115,000 $120,750 $126,787 $135,662 $143,158 $155,319 $166,191

RETURN 6.00% 6.30% 6.61% 7.08% 7.47% 8.10% 8.67%

RCS:dkw:0911:02 The information contained herein has been given to us by the owner of the property or other sources we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it. All information should be verified prior to purchase or lease.

Cheddar’s Casual Cafe ABOUT THE TENANT

Sugar Land, Texas CHEDDAR’S CASUAL CAFÉ is a chain of casual dining restaurants. The chain was founded in 1979 in the Dallas area by Aubrey Good and Douglas Rogers. The chain has 96 restaurants in 20 states, primarily in the South and Midwest. 39 of the units are in Texas and eight of those are in the Houston area. More information can be obtained from the company’s website, www.cheddars.com Cheddar’s is a privately held company, so financial statements are not publicly available. Certain financial information may be available – call the listing broker to discuss.

STORE SALES

This unit has not opened, and the lease does not require that the tenant provide sales. Cheddar’s is generally recognized as one of the most successful and popular food concepts. That is the reason for 170 parking spaces, which is a parking ratio of 20 spaces per 1,000 square feet!

RCS:dkw:0911:02 The information contained herein has been given to us by the owner of the property or other sources we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it. All information should be verified prior to purchase or lease.

Cheddar’s Casual Cafe SITE INFORMATION

Sugar Land, Texas The subject property is located in the Telfair Community, a 2,018-acre master planned community built around two scenic lakes, located at U.S. 59 and University Boulevard. Telfair offers convenient access to transportation arteries (Highway 59, Highway 6 and Grand Parkway), major employment centers, shopping, entertainment and restaurants. The Crossing at Telfair, a 112-acre mixed-use development with HEB supermarket about to open, is currently under construction. Telfair offers three recreation centers including Telfair Central Pool with a swimming pool, twin slides, a spray area, an island playground fort and shade pavilions. 300 acres of green space, with parks and greenbelt trails, meander throughout Telfair linking homes and neighborhoods to a 70-acre lake system. A community center at Telfair Central offers meeting space. Newly opened is the Houston Museum of Natural Science at Sugar Land. TelfairLife is the community-based non-profit corporation which provides programs, activities and services to enhance community life. Parks, historic sites and 10 public and private golf courses are also within easy access of the community. Located two miles southeast at Highways 6 and 59 are First Colony Mall, Market Town Center and Sugar Land Town Square. First Colony Mall is a one-level regional mall with streetscape outdoor shopping. The 1,110,000 square foot mall is anchored by Dillard’s, Macy’s and JC Penney, and features 150 specialty stores. Market at Town Center, a 345,000 square foot neighborhood center, is located in the affluent First Colony master planned community. This center’s anchors include DSW, Nordstrom Rack, Home Goods, Marshalls, Party City, Old Navy and Ross.

RCS:dkw:0911:02 The information contained herein has been given to us by the owner of the property or other sources we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it. All information should be verified prior to purchase or lease.

Cheddar’s Casual Cafe SITE INFORMATION (CONTINUED)

Sugar Land, Texas Sugar Land Town Square is a 32-acre mixed-use development. Town Square includes a 300-room full-service Marriott hotel and conference center, a 82,000 square-foot city hall, 167 mid-rise residential condos, 566,000 square feet of office space, 238,000 square feet of Main Street retail and restaurants and a 1.4-acre pedestrian plaza. Nearby retailers include Wal-Mart Super Center, Sam’s Club, Target, Whole Foods Market, GameStop, Subway, McDonald’s, Buffalo Wild Wings Grill & Bar, Comerica Bank, Chase Bank, BBVA Compass and CVS Pharmacy, to name a few.

MAJOR THOROUGHFARES

U.S. HIGHWAY 59, the major freeway running diagonally through Houston, has undergone a major widening project in recent years to accommodate Sugar Land’s daily commuters. The portion of the freeway east of State Highway 6 has eight main lanes with two diamond lanes and six continuous frontage road lanes, while just west of University Boulevard to State Highway 6 has eight main lanes. U.S. HIGHWAY 90A is a major highway running through Sugar Land from west to east and traverses through a historic area of the city, known as “Old Sugar Land”. U.S. Highway 90A is currently widened to an eight-lane highway with a 30-foot median between State Highway 6 and U.S. Highway 59. STATE HIGHWAY 6 is a major highway running from north to southeast Sugar Land and traverses through the 10,000 acre master-planned community of First Colony. There is a freeway section that opened in 2008.

RCS:dkw:0911:02 The information contained herein has been given to us by the owner of the property or other sources we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it. All information should be verified prior to purchase or lease.

Cheddar’s Casual Cafe ABOUT SUGAR LAND

Sugar Land, Texas Sugarland Sugar Land is 19 miles southwest of downtown Houston within the Houston–Sugar Land–Baytown metropolitan area. Sugar Land is known as one of the most affluent cities in Texas. On yahoo.com, type “Sugar Land Affluent Suburb.” Also, it is one of the fastest-growing cities in Texas, having grown more than 158 percent in the last decade. In the time period of 2000–2007, Sugar Land also enjoyed a 46.24% job growth. In 2008, the U.S. Census Bureau estimated that the city’s population was 79,943, with a median family income of $110,327. Sugar Land has the most master-planned communities in the nation—including First Colony, Sugar Creek, Riverstone, New Territory, Telfair, and many others. Economy Sugar Land is home to the headquarters of Imperial Sugar as well as a major manufacturing facility for Nalco Chemical Company. The charter airline Western Airways is headquartered at Sugar Land Regional Airport. In addition, Sugar Land has numerous energy, semiconductor, technical services, electronics, communications, engineering and software companies. Colleges and Universities Wharton County Junior College and the University of Houston at Sugar Land are both located in Sugar Land. Both are public institutions in the state system. Wharton County Junior College (WCJC) is a comprehensive community college offering a wide range of postsecondary educational programs and services including associate degrees, certificates, and continuing-education courses. The University of Houston at Sugar Land is a multi-institution teaching center of the University of Houston. The courses and programs are offered by the University of Houston (UH), the University of Houston–Clear Lake (UHCL), and the University of Houston–Victoria (UHV).

RCS:dkw:0911:02 The information contained herein has been given to us by the owner of the property or other sources we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it. All information should be verified prior to purchase or lease.

Cheddar’s Casual Cafe ABOUT HOUSTON

Sugar Land, Texas HOUSTON From 2005-2010, according to the U.S. Bureau of Labor Statistics, the Houston metro area added 129,800 private sector jobs, easily outdistancing #2 Dallas, which added 71,300. Houston is among the fastest-growing metropolitan areas in the United States. The area grew 25.2 percent between the 1990 and 2000 censuses—adding more than 950,000 people—while the nation’s population increased 13.2 percent over the same period. Between 2000 and 2009, the population increase was 24.4%. From 2000 to 2009, the area grew by 1,152,000 people, making it the 3rd fastest growing metro area in the US. Between 2008-2009, the total growth in the metropolitan area ranked 2nd in the nation with a population increase of 140,000. In July, 2011, “Forbes” magazine named Houston one of the top ten future “boom towns.” Houston–Sugar Land–Baytown is the sixth-largest metropolitan area in the United States with a population of 5.86 million as of the 2009 U.S. Census estimate. HOUSTON HAS ONE OF THE STRONGEST ECONOMIES IN THE U.S. HOUSTON IS THE “HEADQUARTERS LOCATION” FOR THE U.S. ENERGY INDUSTRY! Houston’s economy has a broad industrial base in the energy, aeronautics, and technology industries. The Port of Houston ranks first in the United States in international commerce, and is the tenth-largest port in the world. It connects via the Houston Ship Channel to Galveston Bay and finally to the Gulf of Mexico, and is expected to be a primary beneficiary of the widening of the Panama Canal, now underway. This will increase the tonnage of shipments coming from Asia. Houston is the home of the Texas Medical Center, the world’s largest concentration of healthcare and research institutions, and NASA’s Lyndon B. Johnson Space Center. In 2006, the Houston metropolitan area ranked first in Texas and third in the U.S. within the category of “Best Places for Business and Careers” by Forbes magazine. Forty foreign governments maintain trade and commercial offices here, and the city has 23 active foreign chambers of commerce and trade associations. Twenty foreign banks representing 10 nations operate in Houston, providing financial assistance to the international community.

RCS:dkw:0911:02 The information contained herein has been given to us by the owner of the property or other sources we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it. All information should be verified prior to purchase or lease.

Sugar Land, Texas

Cheddar’s Casual Cafe ABOUT HOUSTON (CONTINUED)

HOUSTON (CONTINUED) Houston is home to Rice University, one of the country’s leading teaching and research universities, and the University of Houston, Texas’s third largest public research university, with more than 36,000 students from 130 countries. Houston is served by two commercial airports. The larger is George H. Bush Intercontinental Airport (“IAH”), the ninth-busiest in the United States for total passengers, and 17th-busiest worldwide. By far the largest carrier had been Continental Airlines. Bush Intercontinental had been Continental’s largest hub, and is 30 to 40 minutes northeast of downtown. A merger has occurred between Continental and United Airlines, with the merged entity now under the United name. Continental’s former hub here is now a major hub in the new combined airline. In fact, it could well grow in importance, because the closest other United hubs are Chicago and Denver. The smaller commercial airport is William P. Hobby Airport, 20 minutes southeast of downtown. Hobby Airport (“HOU”) operates primarily small to medium-haul flights and is the only airport in Houston served by the discount carriers Southwest Airlines and JetBlue Airways. Southwest flies to about 20 cities from HOU and has 80% of the flights.

DEMOGRAPHICS

2009 ESTIMATE

3-MILE

Population

5-MILE

7-MILE

67,493

206,737

420,160

Average HH Income

$111,383

$100,791

$83,595

Growth 2000-2009

36.53%

35.86%

31.37%

The overall growth in the U.S. during 2000-2010 was just 9.7%. This is a high growth area!

NOTE

The information set forth herein has been received by us from sources we believe to be reliable, but we have made no independent investigation of the accuracy or completeness of the information and make no representations with respect thereto. The above is submitted subject to errors, prior sale or lease, change in status, or withdrawal without notice.

TEXAS

RCS:dkw:0911:02 The information contained herein has been given to us by the owner of the property or other sources we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it. All information should be verified prior to purchase or lease.

Cheddar’s Casual Cafe

Sugar Land, Texas

SITE PLAN

RCS:dkw:0911:02 The information contained herein has been given to us by the owner of the property or other sources we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it. All information should be verified prior to purchase or lease.

Cheddar’s Casual Cafe

Sugar Land, Texas

AERIAL

FIRST COLONY FIRS MALL

SUGAR G LAND LA AND D MEADOW LAKES COMMUNITY

LAKE POINTE TOWN CENTER MASTER PLANNED COMMUNITY

TELFAIR T TELFAI TEL ELFAI FA R CENTRAL FAIR C CENT ENTRAL ENT NT TRAL RAL L PO P POOL OOL OL HOUSTON MUSEUM OF NATURAL SCIENCE

uelvard

MARKET AT TOWN CENTER

Un i

v

FUTURE COMMERCIAL/ MIXED USE

FUTURE COMMERCIAL/ MIXED USE

TE T TELFAIR ELF LFAI LFAI AIR MASTER AIR MAST MA STER ER PLAN PL P PLANNED LAN ANNE NED CO COMM C COMMUNITY OMM MMUN U IT UN IT Y

TRIUMPH HOSPITAL SW

HEALTHSOUTH REHAB HOSPITAL SUGAR LAND D SURGICAL HOSPITAL

PROPOSED HIGH SCHOOL

FUTURE SUGAR LAND PARK

SUBJECT THE CROSSING AT TELFAIR (UNDER CONSTRUCTION)

IMPERIAL PARK RECREATION CENTER

FUTURE COMMERCIAL

SUGAR LAND REGIONAL AIRPORT

NATIONAL ALUMINATE CORPORATION

The information contained herein has been given to us by the owner of the property or other sources we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it. All information should be verified prior to purchase or lease.

Cheddar’s Casual Cafe

Sugar Land, Texas

MAP

SUBJECT

0 mi

1

2

The information contained herein has been given to us by the owner of the property or other sources we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it. All information should be verified prior to purchase or lease.

3

Cheddar’s Casual Cafe

Sugar Land, Texas

MAP

SUBJECT

0 mi

5

10

15

The information contained herein has been given to us by the owner of the property or other sources we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it. All information should be verified prior to purchase or lease.

Sugar Land, Texas

Cheddar’s Casual Cafe Updated Summary Report (%) August 18, 2011

Coordinates Longitude:

-95.646126

Latitude:

29.611324

5.0 Mile Ring 78.54 sq/mi

7.0 Mile Ring 153.94 sq/mi

3.0 Mile Ring 28.27 sq/mi

POPULATION 1990 Total Population 2000 Total Population 2009 Total Population 2014 Total Population % Population Change 1990-2000 % Population Change 2000-2009 % Population Change 2009-2014

27,966 49,435 67,493 75,174 76.77% 36.53% 11.38%

88,191 152,171 206,737 229,219 72.55% 35.86% 10.87%

216,184 319,824 420,160 466,570 47.94% 31.37% 11.05%

HOUSEHOLDS 1990 Total Households 2000 Total Households 2009 Total Households 2014 Total Households % Households Change 1990-2000 % Households Change 2000-2009 % Households Change 2009-2014

8,780 15,757 22,064 24,791 79.46% 40.03% 12.36%

27,848 47,590 66,231 74,208 70.89% 39.17% 12.04%

72,593 101,427 136,822 153,705 39.72% 34.90% 12.34%

2009 RACE % 2009 White Population % 2009 Black Population % 2009 American Indian/Alaska Native % 2009 Asian/Hawaiian/Pacific Islander % 2009 Other Population (Incl 2+ Races)

50.84% 13.00% 0.33% 28.79% 7.04%

47.28% 14.77% 0.40% 28.08% 9.47%

43.70% 20.49% 0.41% 22.00% 13.40%

% 2009 Hispanic Population % 2009 Non-Hispanic Population

12.21% 87.79%

16.32% 83.68%

23.72% 76.28%

RCS:dkw:0911:02 The information contained herein has been given to us by the owner of the property or other sources we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it. All information should be verified prior to purchase or lease.

Sugar Land, Texas

Cheddar’s Casual Cafe

Coordinates Longitude:

-95.646126

Latitude:

29.611324

3.0 Mile Ring 28.27 sq/mi

5.0 Mile Ring 78.54 sq/mi

7.0 Mile Ring 153.94 sq/mi

$36,412 $89,449 $111,383

$32,290 $77,493 $100,791

$27,222 $61,506 $83,595

% 2009 Household Income < $10,000 % 2009 Household Income $10,000-$14,999 % 2009 Household Income $15,000-$19,999 % 2009 Household Income $20,000-$24,999 % 2009 Household Income $25,000-$29,999 % 2009 Household Income $30,000-$34,999 % 2009 Household Income $35,000-$39,999 % 2009 Household Income $40,000-$44,999 % 2009 Household Income $45,000-$49,999 % 2009 Household Income $50,000-$59,999 % 2009 Household Income $60,000-$74,999 % 2009 Household Income $75,000-$99,999 % 2009 Household Income $100,000-$124,999 % 2009 Household Income $125,000-$149,999 % 2009 Household Income $150,000-$199,999 % 2009 Household Income $200,000-$249,999 % 2009 Household Income $250,000-$499,999 % 2009 Household Income $500,000+

1.79% 1.70% 1.66% 1.58% 1.96% 3.16% 2.38% 3.14% 3.31% 8.93% 10.35% 17.34% 13.54% 12.49% 11.00% 2.92% 2.65% 0.08%

2.21% 1.54% 1.68% 2.07% 2.45% 3.35% 2.70% 3.87% 4.03% 10.35% 13.66% 20.87% 12.13% 8.64% 6.02% 1.97% 2.37% 0.09%

3.41% 2.70% 3.34% 3.62% 4.01% 4.84% 4.30% 5.23% 5.23% 11.86% 14.46% 17.30% 8.35% 5.34% 3.49% 1.04% 1.42% 0.05%

2009 Average Household Size % 2009 Total Owner Occupied Housing Units % 2009 Total Renter Occupied Housing Units

3.0 81.31% 18.69%

3.1 79.87% 20.13%

3.0 73.36% 26.64%

78,115 41,725 3,914

210,631 100,887 10,627

401,908 184,552 20,678

Updated Summary Report (%) August 18, 2011

INCOME 2009 Per Capita Income 2009 Median Household Income 2009 Average Household Income

2009 Total Daytime Population 2009 Total Daytime Work Population 2009 Total Establishments

RCS:dkw:0911:02 The information contained herein has been given to us by the owner of the property or other sources we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it. All information should be verified prior to purchase or lease.