Kung Fu Saloon - Fort Worth, TX by STRIVE

FORT WORTH, TX

PRICING & FINANCIAL ANALYSIS

KUNG FU SALOON

FINANCIAL ANALYSIS

Kung Fu Saloon 2818 Morton St Fort Worth, TX 76107

Offering Summary Price Cap Rate

Contact Agent N/A $345,000

Year Built

1951/2018

Gross Leasable Area

8,060 SF

Lot Size

0.30 Acres

Lease Summary Lease Term Lease Commencement

Annualized Operating Data 11 Years

Year(s)

Commencement

Annual

Increase

1-6

9/5/2017

$345,000

Lease Expiration

9/4/2028

7-11

9/5/2023

$379,500

10.00%

Remaining Term

10+ Years

Option 1: 12-16

9/5/2028

$417,450

10.00%

NNN

Option 2: 17-21

9/5/2033

$459,195

10.00%

Tenant

Option 3: 22-26

9/5/2038

$505,115

10.00%

10% Every 5 Years

Option 4: 27-31

9/5/2043

$555,626

10.00%

Roof & Structure Increases Options Options to Purchase

4 x 5 Year

Net Operating Income

MARKET OVERVIEW

9/5/2017

Lease Type

PROPERTY DESCRIPTION

Net Operating Income

$345,000

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Â© 2017 STRIVE

TENANT INFORMATION

KUNG FU SALOON

FINANCIAL ANALYSIS

Tenant Summary Company Ownership Kung Fu Saloon has a relaxed atomosphere, featuring a theme thatâ&#x20AC;&#x2122;s part vintage arcade, part sports bar, and part late night dance party. The Saloon offers patrons entertainment such as arcade games, shuffleboard, skee ball, board games, televised live in-state and outof-state sporting events, a disc jockey, dancing, and karaoke.

Rating Ticker Symbol

Kung Fu Saloon Private Not Rated None

Number of Locations Years in Business Headquarters

9 Years Austin, TX www.kungfusaloon.com

PROPERTY DESCRIPTION

Website

MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. ÂŠ 2017 STRIVE

INVESTMENT HIGHLIGHTS

KUNG FU SALOON

FINANCIAL ANALYSIS

• Irreplaceable AAA urban infill location within the heart of the W. 7th Street District and The Fort Worth Cultural District - Fort Worth, Texas • The West 7th corridor is one of the most sought-after areas in the Dallas Fort Worth metroplex, and the Morton Street property gives an investor a once in a lifetime opportunity to acquire an asset in this coveted market • Absolute Net Lease - no landlord responsibilities and ease of management

PROPERTY DESCRIPTION

• Close proximity to Texas Christian University - over 11,000 students • Excellent legacy asset for both long-term and shortterm retail investors looks for prime, infill opportunities • Currently, there are over 1,500 multi-family units and townhomes within a one-mile radius of Morton St. That number will double by mid-2018 with another 1,500 multi-family units scheduled for completion. • 100% occupied by Kung Fu Saloon Holdings, LLC, which operates 7 successful locations throughout the United States. All locations consistently rank in the top restaurants and bars (per alcohol sales volumes).

MARKET OVERVIEW

• Long term favorable lease - 10% increase in primary term and in option periods • The average household income within one mile of the property is $87,727. This is well above the average in Texas of $55,653. Additionally, the growth rate within a one mile radius of Morton St was 48.75% over the last 7 years This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

KUNG FU SALOON

FINANCIAL ANALYSIS

SITE PLAN

PROPERTY DESCRIPTION MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. ÂŠ 2017 STRIVE

AERIAL MAP

KUNG FU SALOON

FINANCIAL ANALYSIS

2 Montgomery Plaza 330 Apartments 480,000sf Retail Space

PROPERTY DESCRIPTION

3 Left Bank New Development Will Have Nearly 1,500 Residential Units

21,542 VPD

W 7th St

21,890 VPD

Bell Lancaster Apartments 220 Apartments

Foch St

Olympus 7th Street Station 189 Apartments

Parkside So7th Urban Apartments 189 Apartments

MARKET OVERVIEW

University Dr

Crocket Row 540 Apartments 275,000sf Retail Space 100,000 Office Space

4 34 Townhomes Avg Price Range $400,000-$900,000

3 Miles

AERIAL MAP

FINANCIAL ANALYSIS

KUNG FU SALOON

Downtown Fort Worth Montgomery Plaza

PROPERTY DESCRIPTION

t th S

Foch

THE

LO C A L

LEASE COMPARABLES

GLA

Yr Built/ Renovated Occupancy

Major Tenants

Available SF

Rental Rates

NNN

8,060

2018

100.0%

Kung Fu Saloon

$42.80

$0.00

Snap Kitchen 1 2828 W 7th St Fort Worth, TX 76107

1,145

2004

100.0%

Snap Kitchen

$60.00

$0.00

Left Bank 2 601 Stayton St Fort Worth, TX 76107

110,000

n/a

$35.00 - $50.00

$12.00

Sprint / Mattress Firm 3 2736 W 7th St Fort Worth, TX 76107

5,541

2012

100.0%

Sprint, Mattress Firm

$45.00 - $49.00

$12.85

West 7th Retail 4 2501 W 7th St Fort Worth, TX 76107

24,376

2017

100.0%

Natural Grocer, Medspring, Aria Nail & Spa

$42.00-$44.00

$16.00

2800 Bledsoe St Fort Worth, TX 76107

21,830

2013

100.0%

Trophy Ranch, Hooky, Whikey Garden, American Pub, The Local, High Tide

$26.00 - $41.65*

$7.51

under Tom Thumb, Hopdoddy, Nekter Juice Bar, pre-leasing construction TD Ameritrade, MidiCi Pizza

PROPERTY DESCRIPTION

Kung Fu Saloon  2818 - 2822 Morton St Fort Worth, TX 76107

FINANCIAL ANALYSIS

Property

KUNG FU SALOON

MARKET OVERVIEW

*Select Rental Rates include base rent plus additional percentage rent.

LEASE COMPARABLES MAP

KUNG FU SALOON

FINANCIAL ANALYSIS

Kung Fu Saloon 1

Snap Kitchen

Left Bank

Sprint/Mattress Firm

West 7th Retail

2800 Bledsoe St

PROPERTY DESCRIPTION

3 4

LOCAL MAP

KUNG FU SALOON

FINANCIAL ANALYSIS PROPERTY DESCRIPTION MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. ÂŠ 2017 STRIVE

REGIONAL MAP

KUNG FU SALOON

MARKET SUMMARY

KUNG FU SALOON

FINANCIAL ANALYSIS

The city of Fort Worth is often referred to as “Where the West Begins.” Fort Worth is the 17th-largest city in the United States of America and the fifth-largest city in the state of Texas. Located in North Central Texas, and covers nearly 350 square miles (910 km2) in Tarrant, Denton, Parker and Wise counties. According to the 2013 census estimates, Fort Worth had a population of 792,727.

The Stockyards consist of mainly entertainment and shopping venues that capitalize on the “Cowtown” image of Fort Worth. Home to the famous boot making company M.L. Leddy’s which is located in the heart of the Stockyards and The Maverick Fine Western Wear and Saloon where customers “can ‘belly up to the bar, relax and have a cold beer while in the Stockyards just like they did in the days of the big cattle drives”, as they shop around the store. Many bars and nightclubs (including Billy Bob’s Texas) are located in the vicinity, there is also an opry and a rodeo.

MARKET OVERVIEW

The city is also home to Texas Christian University, Texas Wesleyan University, University of North Texas Health Science Center, Texas A&M University School of Law, and many multinational corporations including Bell Helicopter, Lockheed Martin, American Airlines, American Airlines Group (and subsidiaries American Airlines and Envoy Air), the John Peter Smith Hospital, Pier 1 Imports, RadioShack, the BNSF Railway, and Lockheed Martin. In 2013, Fort Worth-Arlington ranked No. 15 on Forbes’ list

of the Best Places for Business and Careers. The Fort Worth Stockyards now celebrates Fort Worth’s long tradition as a part of the cattle industry and was listed on the National Register as a historical district in 1976. The listing included 46 contributing buildings and one other contributing structure.

PROPERTY DESCRIPTION

FORT WORTH, TX

DEMOGRAPHIC STATISTICS

KUNG FU SALOON 1 Mile

3 Mile

5 Mile

8,499 7,608 5,239 11.71% 45.22% 2,142

95,507 88,743 79,964 7.62% 10.98% 36,279

281,191 261,703 240,149 7.45% 8.98% 138,470

6,638 540 47 270 13 101 13

75,077 9,404 889 1,862 106 1,405 24

218,131 30,472 2,909 5,530 303 4,357 302

4,765 4,255 2,865 11.99% 48.52% 1,304 2,951 $88,703 $68,996

37,658 34,832 30,797 8.11% 13.10% 16,875 17,957 $80,980 $53,671

98,888 91,843 83,409 7.67% 10.11% 49,084 42,759 $69,963 $44,675

966 634 689 677 379 365 176 371

8,336 8,141 5,643 4,058 2,393 1,625 1,630 3,005

25,382 24,921 15,431 8,887 4,836 3,123 3,008 6,255

FINANCIAL ANALYSIS

Radius Population: 2022 Projection 2017 Estimate 2010 Census Growth 2017-2022 Growth 2010-2017 2017 Population Hispanic Origin

2017 Population by Race:

Households:

2022 Projection 2017 Estimate 2010 Census Growth 2017 - 2022 Growth 2010 - 2017 Owner Occupied Renter Occupied 2017 Avg Household Income (National Avg - $75,558) 2017 Med Household Income (National Med - $53,889)

2017 Households by Household Inc:

MARKET OVERVIEW

<$25,000 $25,000 - $50,000 $50,000 - $75,000 $75,000 - $100,000 $100,000 - $125,000 $125,000 - $150,000 $150,000 - $200,000 $200,000+

PROPERTY DESCRIPTION

White Black Am. Indian & Alaskan Asian Hawaiian & Pacific Island Other U.S. Armed Forces:

Demographic data © CoStar 2017 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

CONFIDENTIALITY AGREEMENT The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from STRIVE and it should not be made available to any other person or entity without the written consent of STRIVE. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to STRIVE. This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. STRIVE has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenantâ&#x20AC;&#x2122;s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, STRIVE has not verified, and will not verify, any of the information contained herein, nor has STRIVE conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT STRIVE AGENT FOR MORE DETAILS.

Net Lease Disclaimer STRIVE hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, STRIVE has not and will not verify any of this information, nor has STRIVE conducted any investigation regarding these matters. STRIVE makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. STRIVE expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release STRIVE and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

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. 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 th e 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: ӽӽ that the owner will accept a price less than the written asking price; ӽӽ that the buyer/tenant will pay a price greater than the price submitted in a written offer; and ӽӽ 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.

Regulated by the Texas Real Estate Commission

Information available at www.trec.texas.gov IABS 1-0

exclusively listed 469.844.8880 | STRIVERE.COM