Luby's - Houston, TX by STRIVE

HOUSTON, TX

PRICING & FINANCIAL ANALYSIS

LUBY’S

FINANCIAL ANALYSIS

Luby’s Cafeteria (Ground Lease) 11743 Eastex Fwy Houston, TX 77039

Offering Summary Cap Rate Net Operating Income Year Built Gross Leasable Area Lot Size

$1,390,000 5.75% $79,860 1998 9,100 SF 1.51 Acres

Lease Summary Original Lease Term

Annualized Operating Data 20 Years

Year(s)

Commencement

Annual

Increase

4/29/1998

1-5

4/29/1998

$60,000

Lease Expiration

4/30/2023

6-10

5/1/2003

$66,000

10.00%

Remaining Term

5+ Years

11-15

5/1/2008

$72,600

10.00%

16-20

5/1/2013

$79,860

10.00%

Opt 1 21-25

5/1/2018

$87,846

10.00%

Opt 2 26-30

5/1/2023

$96,631

10.00%

Roof & Structure Increases Options Options to Purchase

Ground Tenant Yes 2 x 5 Year None

Net Operating Income

MARKET OVERVIEW

Lease Commencement

Lease Type

PROPERTY DESCRIPTION

Price

$79,860

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

TENANT INFORMATION

LUBY’S

FINANCIAL ANALYSIS

Company Summary Company Ownership Rating

Luby’s Inc Public Not Rated

Agency

N/A

Ticker Symbol

LUB

Exchange

NYSE

Market Cap

88.73 Million

Sales Volume

68.30 Million

Number of Locations Years In Business Headquarters Website

PROPERTY DESCRIPTION

Luby’s, Inc. (NYSE: LUB) operates restaurants under the brands Luby’s Cafeteria, Fuddruckers and Cheeseburger in Paradise and provides food service management through its Luby’s Culinary Services division. The company-operated restaurants include 94 Luby’s Cafeterias, 71 Fuddruckers restaurants, eight Cheeseburger in Paradise full service restaurants and bars and one Bob Luby’s Seafood Grill. Its 94 Luby’s Cafeterias are located primarily in Texas. In addition to the 71 company-operated Fuddruckers locations, Luby’s is the franchisor for 107 Fuddruckers franchise locations across the United States (including Puerto Rico), Canada, Mexico, Italy, Chile and the Dominican Republic. Luby’s Culinary Services provides food service management to 25 sites consisting of healthcare, higher education and corporate dining locations.

95+ 70 Years Houston, TX www.lubys.com

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. © 2017 STRIVE

INVESTMENT HIGHLIGHTS

LUBY’S

• Long-Term Corporate Ground Lease FINANCIAL ANALYSIS

• Tenant Since 1998 - Recently Renewed Early for Additional 5 Years •

Publically Trade Tenant (NYSE: LUB)

•

Below Market Rent - $8.77psf

• Rent Escalation of 10% Within 1 Year Increasing Returns PROPERTY DESCRIPTION

• Located Just 10 Miles North of Downtown Houston • Pad Site to 175,000 Sq Ft Mount Houston Shopping Center Anchored by Famsa & Fallas including Walgreens, CitiTrends, Family Dollar, Subway, Cici’s Pizza, & Dairy Queen • Located Along US Hwy 59 and E Mt Houston Rd with Traffic Counts Exceeding 200,000 Vehicles Per Day – Excellent Highway Visibility • Dense Infill Location – Population exceeds 208,000 People Within 5 miles

MARKET OVERVIEW

• Houston was Named Forbes’ Fastest Growing City in the United States for 2015 • Houston’s Economy has a Broad Industrial Base in the Energy, Aeronautics, and Technology Industries: Only New York City is Home to More Fortune 500 Headquarters 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

SITE PLAN

LUBYâ&#x20AC;&#x2122;S

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

AERIAL MAP

LUBY’S

FINANCIAL ANALYSIS

Aldine Mail Rte Rd

Hambrick Middle School

PROPERTY DESCRIPTION

Ea ste

MacArthur High School

MARKET OVERVIEW

Escamila Intermediate School

LOCAL MAP

LUBYâ&#x20AC;&#x2122;S

REGIONAL MAP

LUBY’S

MARKET SUMMARY

LUBY’S

FINANCIAL ANALYSIS PROPERTY DESCRIPTION

HOUSTON, TX Houston is the most populous city in Texas, and the fifth most populous city in the United States. With a censusestimated 2013 population of 6.49 million people within a land area of 10,062 square miles, Houston is the largest city in the Southern United States, the seat of Harris County, and fifth-most populated metropolitan area in the United States.

Nicknamed the Space City, Houston is a global city, with strengths in business, international trade, entertainment, culture, media, fashion, science, sports, technology, education, medicine and research. The city has a population from various ethnic and religious backgrounds and a large and growing international community. Houston is considered to be the most diverse city in Texas and the United States. It is home to many cultural institutions and exhibits, which attract more than 7 million visitors a year to the Museum District. Houston has an active visual and performing arts scene in the Theater District and offers year-round resident companies in all major performing arts.

MARKET OVERVIEW

Houston was founded in 1836 on land near the banks of Buffalo Bayou (now known as Allen’s Landing) and incorporated as a city on June 5, 1837. The city was named after former General Sam Houston, who was president of the Republic of Texas and had commanded and won at the Battle of San Jacinto 25 miles (40 km) east of where the city was established. The burgeoning port and railroad industry, combined with oil discovery in 1901, has induced continual surges in the city’s population. In the mid-twentieth century, Houston became the home of the Texas Medical Center— the world’s largest concentration of healthcare and research institutions—and NASA’s Johnson Space Center, where the Mission Control Center is located.

Houston’s economy has a broad industrial base in energy, manufacturing, aeronautics, and transportation. It is also leading in health care sectors and building oilfield equipment; only New York City is home to more Fortune 500 headquarters. The Port of Houston ranks first in the United States in international waterborne tonnage handled and second in total cargo tonnage handled.

DEMOGRAPHIC SUMMARY

LUBY’S

Geography: 5 miles

FINANCIAL ANALYSIS

Population

In the identified area, the current year population is 208,943. The rate of change since 2000 was 12.4%. The five-year projection for the population in the area is 221,887 representing a change of 6.2% from 2015 to 2020. Currently, the population is 50.1% male and 49.9% female. The median age in this area is 28.1, compared to the U.S. median agoe of 37.9.

Households There are currently 60,117 households in your selected georgraphy. The number of households has changed by 11.2% since 2000. It is estimated that the number of households in your area will be 63,878 five years from now, which represents a change of 6.3% from the current year. The average household size in your area is 3.45 persons.

Income PROPERTY DESCRIPTION

In 2015, the median household income for your selected georgraphy is $34,093, compare this to the Entire U.S. average, which is currently $53,217. It is estimated that the median household income in your area will be $38,332 five years from now, which represents a change of 12.4% from the current year. The current year per capita income in your area is $13,801 compare this to the Entire U.S. average, which is $28,597. The current year average household income in your area is $47,297 , compare this to the Entire U.S. average, which is $74,699.

Race and Ethnicity The current year racial makeup of your selected area is as follows: 43.5% White, 27.0% Black, 0.8% Native American and 1.0% Asian/Pacific Islander. Compare these to the Entire U.S. Averages which are: 71.60% White, 12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 64.1% of the current year population in your selected area. Compare this to the Entire U.S. average of 17.6%.

MARKET OVERVIEW

Housing In 2015, there were 34,116 owner occupied housing units in your area and there were 26,002 renter occupied housing units in your area. Median home value in the area is $108,205, compared to a median home value of $200,006 for the U.S.

Employment In 2015, there are 82,143 employees in your selected area, this is also known as the daytime population. Currently, 37.7% of employees are employed in white-collar occupations in this geography, and 41.9% are employed in blue-collar occupations. In 2015, unemployment in this area is 6.1%. Demographic data © 2016 esri 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

DEMOGRAPHIC STATISTICS 1 Mile

3 Miles

5 Miles

2000 Population

10,275

82,400

185,841

2010 Population

10,311

81,419

2015 Population

10,712

2020 Population

11,358

Income

1 Mile

3 Miles

5 Miles

$ 0 - $14,999

23.0%

19.2%

19.9%

199,754

$ 15,000 - $24,999

14.0%

15.7%

84,317

208,943

$ 25,000 - $34,999

18.0%

16.0%

15.4%

89,039

221,887

$ 35,000 - $49,999

14.7%

16.1%

14.9%

$ 50,000 - $74,999

18.3%

17.8%

7.2%

8.7%

7.8%

1 Mile

3 Miles

5 Miles

$100,000 - $149,999

3.8%

5.2%

5.4%

2000 Households

2,827

23,557

54,103

$150,000 - $199,999

0.9%

0.8%

1.4%

2010 Households

2,745

22,911

57,587

$200,000 +

0.1%

0.4%

1.6%

2015 Households

2,853

23,638

60,117

2015 Median Household Income

$31,484

$34,188

$34,093

2020 Households

3,031

24,941

63,878

2015 Per Capita Income

$10,797

$12,339

$13,801

2015 Daytime Population

4,182

32,583

82,143

2015 Average Household Income

$40,383

$43,598

$47,297

2015 Average Household Size

3.74

3.55

3.45

2010 Owner Occupied Housing Units

48.0%

58.1%

54.1%

2010 Renter Occupied Housing Units

38.0%

32.2%

36.0%

2010 Vacant

14.0%

9.6%

9.9%

2015 Owner Occupied Housing Units

45.2%

55.5%

51.4%

2015 Renter Occupied Housing Units

40.8%

35.2%

39.2%

14.1%

9.4%

9.5%

2020 Owner Occupied Housing Units

44.9%

54.8%

50.8%

2020 Renter Occupied Housing Units

41.0%

35.9%

40.0%

2020 Vacant

14.1%

9.3%

9.2%

2015 Vacant

PROPERTY DESCRIPTION

$ 75,000 - $99,999 Households

FINANCIAL ANALYSIS

Population

LUBYâ&#x20AC;&#x2122;S

Traffic Counts

MARKET OVERVIEW

15,240

201,347

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.

Approved by the Texas Real Estate Commission for Voluntary Use Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

Information About Brokerage Services

efore working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner’s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer’s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly. IF THE BROKER REPRESENTS THE OWNER: The broker becomes the owner’s agent by entering into an agreement with the owner, usually through a written - listing agreement, or by agreeing to act as a subagent by accepting an offer of subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner’s agent anything the buyer would not want the owner to know because an owner’s agent must disclose to the owner any material information known to the agent. IF THE BROKER REPRESENTS THE BUYER: The broker becomes the buyer’s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer’s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer’s agent anything the owner would not want the buyer to know because a buyer’s agent must disclose to the buyer any material information known to the agent. IF THE BROKER ACTS AS AN INTERMEDIARY: A broker may act as an intermediary between the parties if the broker complies with The Texas Real Estate License Act. The broker must obtain

the written consent of each party to the transaction to act as an intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermediary in a transaction: (1) shall treat all parties honestly; (2) may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner; (3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and (4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property. With the parties’ consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party. If you choose to have a broker represent you, you should enter into a written agreement with the broker that clearly establishes the broker’s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding.

Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records.

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