Ryan's - Fire Mountain Grill, Southeast Region

Property Description

• Absolute Triple-Net (NNN) Lease- Tenant pays property taxes, insurance, repairs and maintenance.

• Excellent location along US Highway

• Outparcel to a busy shopping center

• Below market rents

• Low cost basis per square foot

• Corporate Guarantee - Buff et Holdings Inc. ($1.3 billion in revenue with 533 locations in 38 states)

• Excellent rent to sales ratio (7.9%)

• Original Lease Term: 5 Years

• Lease Commencement: May 1, 2008

• Lease Expiration: June 30, 2013

• Tenant's Cancellation Option: Tenant has the right to terminate the lease with 90 days notice. This option is only valid during primary term, expiring June 30, 2013.

The subject property is an opportunity for an investor to acquire a well located, triple-net (NNN) leased property in North Carolina. Fire Mountain is located in a dense retail trade area. The Subject is an approximate 10,542 square foot, single tenant restaurant building on approximately 2.3 acres of land. Construction was completed on the building in 1995.

The existing lease is on year 3 of a 5 year, triple-net (NNN) corporate lease with Ryan's Restaurant Group, Inc. (dba Fire Mountain Grill) with (3) 5-year options to extend. Tenant does have the option to terminate the lease during the primary term with 90 days written notice to landlord.

The property is located in a dense retail area along a US Highway. Within the area other retailers include Lowe's, Kohl's, Walmart, McDonald's, Applebees, Taco Bell, Shell Station, Staples, KFC, & Radio Shack, Belk's, Dollar Tree & Advanced Auto Parts.

About the Tenant

Ryan’s Restaurant Group (Tenant)

Ryan’s was founded by Alvin A. McCall in 1977. It was acquired by Buff ets, Inc. on November 1, 2006. Today there are over 200 restaurants in 23 states operating under the Ryan’s Grill, Buff et and Bakery and Fire Mountain Grill names. Ryan’s is based primarily in the Southern and Midwestern United States, with its corporate headquarters located in Greer, SC. Some of its accolades include being one of the “Best Small Companies in America” seven years in a row and being named “Top Family Steakhouse in America” for 10 years straight.

Buff et Holdings, Inc. (Guarantor)

Buff et Holdings is the parent company of Buff ets, Inc., the nation’s largest steak-buff et restaurant company, which currently operates 533 restaurants in 38 states, comprised of 523 steak-buffet restaurants and 10 Tahoe Joe’s Famous Steakhouse restaurants, and franchises 14 steak-buff et restaurants in six states. The restaurants are principally operated under the Old Country Buff et, HomeTown Buff et, Ryan’s and Fire Mountain brands. Buff ets, Inc. employs more than 30,000 team members and serves more than 160 million customers annually.

Company Highlights
• Ranked #4 in the Family Dining Segment and #1 in the Grill Buff et Sub-Segment

• 533 Restaurants in 33 States, Plus 14 Franchised Restaurants (as of 2/11/09)

• Approximately 170 Million Guests Annually

• S&P Rating B-. Outlook stable.

• Operating Under Four Primary Brands:

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