Sherwin-Williams Shopping Center - Tyler, TX by STRIVE

SHERWIN-WILLIAMS SHOPPING CENTER TYLER, TX

CAPITAL MARKETS | INVESTMENT PROPERTIES

W E

A R E

E XC I T E D

A N N O U N C E

T H E

M E R G E R

O F

PIERSON RETAIL ADVISORS & THE VITORINO GROUP

Proudly, Pierson Retail Advisors and the Vitorino Group have merged forces and combined operations, renaming themselves STRIVE. Collectively, they have sold over 715 assets in nearly $3 billion in commercial real estate.

PRICING & FINANCIAL ANALYSIS

SHERWIN-WILLIAMS SHOPPING CENTER

FINANCIAL ANALYSIS

Sherwin-Williams Shopping Center 6516 South Broadway Avenue Tyler, TX 75703

Offering Summary Price Price PSF Net Operating Income

$2,205,000 $304 $154,382

Cap Rate

7.00%

Cash on Cash Return*

9.23%

Occupancy Lot Size Year Built Existing Debt

PROPERTY DESCRIPTION

Gross Leasable Area

100% ± 7,242 SF ± 0.601 Acres 1994 Free & Clear

*Cash on Cash Return based on market debt assumptions

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

PRICING & FINANCIAL ANALYSIS

SHERWIN-WILLIAMS SHOPPING CENTER

Base Rent - Occupied Space

(100%)

GROSS POTENTAL RENT

Current

PSF

$159,324

$22.00

$159,324

$22.00

Expenses

Current

PSF

Real Estate Taxes

$14,142

$1.95

Insurance

$3,791

$0.52

FINANCIAL ANALYSIS

Income & Expenses

CAM

Exp. Reimb. $550

$0.08

Porter Service

$700

$0.10

Management Fee Recoveries

$1,678

$0.23

Pressure Washing

$350

$0.05

Insurance Recoveries

$3,791

$0.52

Landscape Contract

$720

$0.10

Real Estate Tax Recoveries

$14,142

$1.95

$1,770

$0.24

Total Exp. Reimb.

$20,161

$2.78

$5,400

$0.75

GROSS POTENTIAL REVENUE

$179,485

$24.78

$25,103

$3.46

EFFECTIVE GROSS REVENUE

$179,485

$24.78

Real Estate Taxes

$14,142

$1.95

Insurance

$3,791

$0.52

CAM

$1,770

$0.24

Mgmt. Fee

$5,400

$0.75

Total Expenses

$25,103

$3.47

Total CAM Management Fee

TOTAL EXPENSES

PROPERTY DESCRIPTION

CAM Recoveries

Expenses

NET OPERATING INCOME

$154,382

RENT ROLL Tenant

Sq Ft

% of Sq Ft

Start

End

Annual Rent

PSF

Sherwin Williams

4,992

68.93%

10/93

05/27

$109,824

$22.00

Texas Star LLC

2,250

31.07%

07/17

06/22

$49,500

$22.00

7,242

100.0%

0.0%

7,242

100.0%

Occupied Vacant Total

06/2021

$24.20

Options

Use Restrictions & Exclusive Uses

Exclusive right to run a busiTwo 5-year options; ness whose 1st option at $26.62/sf, primary source 2nd at $29.28/sf of income is the sale of paint, wallcovering or floorcovering One 5-year option at FMV

PROPERTY DESCRIPTION

Escalation Escalation Date Amount

FINANCIAL ANALYSIS

Suite

SHERWIN-WILLIAMS SHOPPING CENTER

FINANCIAL ANALYSIS

Tenant Overview Tenant

The Sherwin-Williams Company

Ownership

Public (NYSE: SHW)

Years In Business

150 Years

Number of Locations

4,500

Headquarters

Cleveland, OH

Website

PROPERTY DESCRIPTION

The Sherwin-Williams Company is an American Fortune 500 company in the general building materials industry. The company, which is headquartered in Cleveland, Ohio, primarily engages in the manufacture, distribution, and sale of paints, coatings, and related products to professional, industrial, commercial, and retail customers all around the world.

www.sherwin-williams.com

Tenant Overview Tenant

Mineola Texas Star, LLC

DBA

Texas Star Title & Loans

Ownership

Texas Star Title & Loans is a source for payday loans and title loans in Longview, Tyler, and Mineola, Texas. Texas Star Title & Loans has been helping out East Texas residents for over 30 years.

Number of Locations Headquarters Website

30+ Years

MARKET OVERVIEW

Years In Business

Private 4 Tyler, TX www.paydaycashloanstexas.com

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 SUMMARY & HIGHLIGHTS

Brand New Roof: Sherwin-Williams Shopping Center’s roof was replaced in December 2016 and includes a 20-year warranty. This will benefit an investor as it is likely to require minimal capital improvements in the near future. Exceptional Positioning with High Traffic Counts: SherwinWilliams Shopping Center benefits from its position along South Broadway Avenue, a major thoroughfare with nearly 50,000 vehicles passing the Property daily. The Property is also located just off East Grande Boulevard, which carriers more than 21,000 vehicles daily. High Growth Trade Area with Strong Demographics: SherwinWilliams Shopping Center benefits from its location along South Broadway, Tyler’s retail Hub. Currently, within a three mile radius of the Property, there are 47,368 residents increasing to 93,374 within five miles. Additionally, the population base has an average annual incomes of $78,042 and $74,338 within a three and five mile radius, respectively. Furthermore, over the last five years this trade area has seen a 6.4% growth in population on average within five miles. This pattern is expected to continue over the next five years with projections averaging 5.6% growth. The property’s surrounding demographics continue to provide stability for the Property and its trade area well into the future.

MARKET OVERVIEW

Excellent Retail Location: Positioned along South Broadway Avenue in the heart of Tyler’s retail hub, the Property benefits from its location adjacent to Walmart Supercenter. Additional area traffic generators are Target, AMC Tyler 14, Lowe’s Home Improvement, PetSmart, and Best Buy, to name a few.

Tenant Line-up: The Property is currently 100% occupied by Sherwin-Williams and Texas Star Title & Loans. The Property is virtually immune to the forces of the internet because every tenant in Sherwin-Williams Shopping Center caters to an ‘in-person’ consumer experience.

PROPERTY DESCRIPTION

Capital Improvements: Over the past year the current owner has completed extensive improvements to the Property. These improvements include new storefronts for both Sherwin-Williams and Texas Star Title & Loans made of high quality concrete vinyl veneer. Additional improvements completed was the replacement of the roof and repaving and restriping of the parking lot. Along with repaving the parking lot the owner also redid the sidewalks along the front of the property and directly in front of the stores. Additionally, new tenant signs were placed on the pole sign to allow both tenants to be prominently displayed. The new Storefronts along with the renovated pole sign will give the tenants increased visibility along South Broadway.

FINANCIAL ANALYSIS

Tenant Longevity: The Property’s largest tenant, Sherwin-Williams, has been at the Property since its construction in 1994 and has a customer base spanning the US. Additionally, in 2014, 2015, and 2016 Sherwin-Williams was recognized as the most used brand, winner of brand familiarity, and quality rating in the Paints category by the Builder Magazine. This Sherwin-Williams location is one of the highest grossing in the East Texas Region.

SHERWIN-WILLIAMS SHOPPING CENTER

SITE PLAN

SHERWIN-WILLIAMS SHOPPING CENTER

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. Â© 2017 STRIVE

SHERWIN-WILLIAMS SHOPPING CENTER

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AERIAL MAP L O O P

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FINANCIAL ANALYSIS

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PROPERTY DESCRIPTION

W W GGrraand ndee BBlv lvdd Oak Oak Hills Hills 180 180 SF SF Lots Lots

SITE Hollytree Hollytree Country Country Club Club

Holly Holly Tree Tree 635 635 Lots Lots ($300K ($300K -- $500K $500K Homes) Homes)

Oak Oak Hollow Hollow 390 390 SF SF Lots Lots

MARKET OVERVIEW

Cumberland Rd extension [completion - Summer 2016]

Trinity Mother Francis Community Hospital [construction start 2015]

CCuummbber erllaanndd RRdd FAULKNER PARK

Cumberland Cumberland Gap Gap Residential Residential Community Community 400 400 SF SF Lots Lots

• State Little League Championships (fields can average over 2,650 visitors each week) • 8 Premier Tennis Courts • Pro Shop • 5.5 Miles of Hike & Bike Trails

[Now Open]

Projected - 30,000 visitors for 2015 - 151 different conventions - 250 room hotel with an average occupancy of 250-300 people

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 City y of o T Ty Tyle Tyler y er yler er purposes only and do not represent the current or future performance of © 2017 STRIVE Hotel & Convention nve n nvention vent ethe nttio on o nproperty. C Center Ce ente ent err 15 5a acres cre ess

LOCAL MAP

SHERWIN-WILLIAMS SHOPPING CENTER

REGIONAL MAP

SHERWIN-WILLIAMS SHOPPING CENTER

MARKET SUMMARY

SHERWIN-WILLIAMS SHOPPING CENTER

FINANCIAL ANALYSIS PROPERTY DESCRIPTION

TYLER, TEXAS Flower Trail, which travels through 10 miles of residential and historic home sites. The Trail has been featured in numerous newspapers and magazines, including Southern Living and Texas Highways, drawing visitors from all over America. The Texas Rose Festival and the Azalea & Spring Flower Trail bring in more than 179,000 visitors to town and together have an economic impact of over $4 million. Tyler’s largest employers include hospitals such as East Texas Medical Center and UT Health Center at Tyler as well as retail distributors like Brookshire’s, food producers like John Soules Foods, large retailers such as Walmart, telecommunications providers like Suddenlink, and manufacturers such as Carrier Corp., Trane, and Tyler Pipe. The health-care organization Fresenius Medical Care North America recently established a new medical business office support facility in Tyler, which will account for over 350 new jobs.

MARKET OVERVIEW

Tyler is a city of approximately 101,421 residents located in East Texas, 90 miles east of Dallas, 200 miles north of Houston, and 90 miles west of Shreveport, Louisiana. Tyler has a small-town vibe and big-city style. Brick-paved streets in the city’s downtown lead to family attractions, quaint antique shops and unique specialty stores. Residents enjoy access to 25 city parks, crystal-clear lakes, and more than 20 golf courses. The city is considered the manufacturing, health care, educational, and retail center of East Texas. Tyler has become known as “The Rose Capital of America.” Tyler’s rose production accounts for nearly 20% of U.S. rose production. Every year in October the city is in gorgeous bloom with hundreds of thousands of roses everywhere on city streets and gardens. The season is highlighted by the three-day Texas Rose Festival. Each spring enjoy The Azalea & Spring

Source: Tyler Area Chamber of Commerce 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 Mile

5 Mile

10,809 9,984 9,523 8.30% 4.61% 728

47,368 45,361 41,954 4.42% 8.12% 3,942

93,374 89,671 84,268 4.13% 6.41% 12,998

7,443 1,133 50 403 4 204 0

36,300 6,206 268 1,745 21 820 6

69,152 15,910 593 2,434 80 1,503 67

4,541 4,378 4,219 3.72% 3.77% 1,965 2,412 $72,720 $50,308

20,641 19,787 18,479 4.32% 7.08% 10,541 9,245 $78,042 $52,066

38,178 36,664 34,589 4.13% 6.00% 20,340 16,325 $74,338 $49,967

1,163 1,231 707 458 251 161 196 209

5,236 5,033 3,094 2,075 1,443 735 940 1,230

10,631 9,233 5,457 3,981 2,826 1,200 1,519 1,818

FINANCIAL ANALYSIS

Radius

SHERWIN-WILLIAMS SHOPPING CENTER

Population: 2021 Projection 2016 Estimate 2010 Census Growth 2016-2021 Growth 2010-2016 2016 Population Hispanic Origin

2016 Population by Race:

Households:

2021 Projection 2016 Estimate 2010 Census Growth 2016 - 2021 Growth 2010 - 2016 Owner Occupied Renter Occupied 2016 Avg Household Income 2016 Med Household Income

2016 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

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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