Town & Country - McAllen, TX by STRIVE

TOWN & COUNTRY SHOPPING CENTER McALLEN, TX

PRI CING & F INAN CI AL AN ALYSI S

TOWN & CO U NT RY SH O P P ING C E NT E R

Town & Country SC 5007 & 6001 N 10th St McAllen, TX 78504

OFFERING SUMMARY Price

$12,510,000

Existing Assumable Debt (Matures Sep. 2027)

$8,350,000

Required Equity

$4,160,000

Equity Yield

(I/O period through Sep. 2020)

Equity Yield (Amort. period Oct 2020 - Sep. 2027) Net Operating Income

13.14% 9.98% $924,147

Price PSF

$137.01

Occupancy

94.0%

Year Renovated Gross Leasable Area Lot Size

2002 91,306 SF 6.80 Acres

F I N A N C I A L A N A LY S I S

I N VE S TMENT HI GHLI GHT S

TOWN & CO U NT RY SH O P P ING C E NT E R

•

Stabilized Asset with High Equity Yield plus Value-Add Opportunity: Town & Country is currently 94% occupied, providing investors with a stable current cash flow while offering potential upside through the lease-up of the remaining 5,500 square feet of available space. • High Leveraged Return: The existing assumable debt was originated in October 2017 at terms highly favorable relative to the current market. The highlights include: 4.52% rate, 10 year term/30 year amortization, 3 year I/O strip (through 9/2020), 67% leverage to the asking price, and a very strong cash on cash yield (13.14% for the remaining I/O period of 2 years & 9.98% thereafter). • Long Term Tenancy: The Town & Country tenant base has demonstrated outstanding longevity as 82% of the current tenant lineup has been at the Property for more than 5 years. • Exceptional Visibility and Accessibility: Unlike many retail properties, the sight lines for Town & Country have not been obstructed by additional free-standing pad users in the parking lot, creating clear views of the entire property from 10th Street. Additionally, Town & Country provides 3 points of unimpeded ingress/egress for both the northbound and southbound 10th Street traffic, in addition to 2 points of ancillary street access. • Exceptional Positioning: Town & Country greatly benefits from its prominent “in-fill” position on 10th Street, one of the major retail thoroughfares in McAllen, accommodating more than 16,900 vehicles per day. • Tremendous Trade Area with High Growth and Income: Town & Country is a true neighborhood center in this affluent section of McAllen. Boasting a population of roughly 15,000 people and average household incomes of $85,000 within a 1 mile radius, Town & Country is located at the center of a submarket with a dense population base and considerable amounts of discretionary income. • Heavy Cross Border Consumer Traffic: Located across the Rio Grande River from Reynosa, Mexico (population 600,000+), McAllen is often referred to as the retail center of southern Texas and northern Mexico. The high volume of cross border consumer traffic is evidenced by McAllen’s La Plaza Mall posting the highest sales per square foot of any shopping mall in the nation.

PROPERTY DESCRIPTION

PRI CING & F INAN CI AL AN ALYSI S

PROJECTED INCOME & EXPENSES

TOWN & CO U NT RY SH O P P ING C E NT E R

CURRENT

Base Rent - Occupied Space GROSS POTENTIAL RENT

PSF

EXPENSES

$1,027,582

$11.25

Real Estate Taxes

$1,027,582

$11.25

Insurance

Expense Reimbursements

CURRENT

PSF

$227,098

$2.49

$41,660

$0.46

CAM

CAM Recoveries

$67,049

$0.73

Lighting & Electrical

$9,962

$0.11

Management Fee Recoveries

$16,629

$0.18

Roof Repair

$3,220

$0.04

Insurance Recoveries

$31,724

$0.35

Fire Inspection & Monitoring

$10,953

$0.12

Real Estate Tax Recoveries

$176,330

$1.93

Janitorial

$14,740

$0.16

Total Expense Reimbursements

$291,731

$3.20

Maintenance Expense

$10,530

$0.12

$1,319,310

$14.45

Pest Control

$779

$0.01

Landscaping

$9,840

$0.11

$16,042

$0.18

EFFECTIVE GROSS REVENUE Operating Expenses Total CAM

$86,825

$0.95

Electricity (CAM)

$39,579

$0.43

Water & Sewer (CAM)

$5,140

$0.06

$41,660

$0.46

Trash Disposal

$6,747

$0.07

$227,098

$2.49

Passthru Electricity (CAM)

($1,129)

($0.01)

Total Recoverable Expenses

$395,163

$4.33

Total CAM

$86,825

$0.95

Net Operating Income

$924,147

$10.12

Management Fee

$39,579

$0.43

$395,163

$4.33

Management Fee Total Insurance Total Real Estate Taxes

Lender Req. Reserves at $0.28 PSF Cash Flow before Debt Service Assumable Debt Cash Flow after Debt Service Cash-on-Cash Return

3.00%

$25,232

Total Expenses

3.00%

$898,915 $508,938 $389,977 13.14%

F I N A N C I A L A N A LY S I S

LOAN DETA ILS

TOWN & CO U NT RY SH O P P ING C E NT E R

EXISTING ASSUMABLE LOAN Purchase Price

$12,510,000

Loan Amount

$8,350,000

Equity to the Note

$4,160,000

Loan to Purchase Price Interest Rate I/O Strip (Effective through Sept 2020) Amortization Schedule (Begins Oct 2020) Loan Constant (Amort. Period) Call Residual Percentage

67% 4.5208% 3 Years 30 Years 6.10% 10 Years 87.07%

NOI

$924,147

Annual Debt Service (I/O Period)

$377,487

Annual Debt Service (Amort. Period)

$508,938

Clear Cash after DS (I/O Period)

$546,660

Clear Cash after DS (Amort. Period) Debt Service Coverage Ratio (Amort. Period)

$415,209 1.82

Cash on Cash Return (I/O Period)

13.14%

Cash on Cash Return (Amort. Period)

9.98%

Loan Start Date

Oct. 2017

Interest Only Period Ends

Sep. 2020

Maturity Date

Sep. 2027

F I N A N C I A L A N A LY S I S

RE NT RO L L

Tenant

TOWN & CO U NT RY SH O P P ING C E NT E R

Suite

SQ FT

% of SQFT

Lease Dates

Minimum Rent

Recoveries

Total

Start

End

Annual

Monthly

PSF

Annual

PSF

Revenue

% of Revenue

National Veterinary

4,782

100.00%

12/08

11/23

$107,834

$8,986

$22.55

$25,727

$5.38

$133,561

10.12%

Children's Orchard

4905

4,000

4.62%

12/09

06/20

$44,920

$3,743

$11.23

$17,681

$4.42

$62,601

4.74%

Cliff Ranson Photography

4909

2,000

2.31%

02/13

03/19

$26,400

$2,200

$13.20

$8,841

$4.42

$35,241

2.67%

Karlas LLC

4915

5,000

5.78%

10/07

02/24

$60,000

$5,000

$12.00

$22,101

$4.42

$82,101

6.22%

Maxwell Salon

4917

3,000

3.47%

10/16

02/22

$39,000

$3,250

$13.00

$13,261

$4.42

$52,261

3.96%

El Divino

5001

6,492

7.50%

09/12

06/19

$94,134

$7,845

$14.50

$28,696

$4.42

$122,830

9.31%

Shannon Fine Jewelry

5007

1,880

2.17%

04/10

03/20

$23,789

$1,982

$12.65

$8,310

$4.42

$32,099

2.43%

Quips & Quotes

5011

15,730

18.18%

08/98

03/22

$188,760

$15,730

$12.00

$0.00

$188,760

14.31%

Butler's Barber Shop

5021

1,880

2.17%

08/17

07/22

$26,320

$2,193

$14.00

$8,310

$4.42

$34,630

2.62%

Cryo Body Perfection

5103

2,750

3.18%

07/16

09/19

$37,125

$3,094

$13.50

$12,156

$4.42

$49,281

3.74%

Hobbies & Heroes

5109

1,650

1.91%

01/18

12/21

$13,200

$1,100

$8.00

$7,293

$4.42

$20,493

1.55%

5111

1,650

1.91%

03/10

02/21

$33,759

$2,813

$20.46

$7,293

$4.42

$41,052

3.11%

Edibe Arrangements

5113A

1,650

1.91%

01/07

01/22

$33,775

$2,815

$20.47

$7,293

$4.42

$41,069

3.11%

9 Round Fitness

5113B

1,650

1.91%

12/13

02/20

$23,777

$1,981

$14.41

$7,293

$4.42

$31,070

2.36%

5115

28,560

33.01%

12/08

03/20

$232,764

$19,397

$8.15

$105,319

$3.69

$338,083

25.63%

Water

0.00%

06/13

06/23

$9,600

$800

$0.00

$9,600

0.73%

French CafÃ©

5101

2,750

3.18%

11/18

10/23

$26,125

$2,177

$9.50

$12,156

$4.42

$38,281

2.90%

Available

5105

5,500

6.36%

$0.00

0.00%

ATM

382

0.44%

MTM

$6,300

$525

$16.49

$0.00

$6,300

0.48%

Total Count/GLA

91,306

200%

Totals

$1,027,582

$85,632

$1,319,313

100.00%

Occupied

85,806

94.0%

Available

5,500

6.0%

$11.98

85,806

100.0%

Mail-Pak

Office Depot Watermill Express LLC

Total Avg Rent

$291,731

F I N A N C I A L A N A LY S I S

E S TI MATED REIMBUR SEMEN T R EVEN U E

Tenant

Suite

SQ FT

TOWN & CO U NT RY SH O P P ING C E NT E R

% of SQFT

CAM

Management Fee

Insurance

Real Estate Taxes

Total Recovery

Monthly

PSF

Monthly

PSF

Monthly

PSF

Monthly

PSF

Monthly

PSF

National Veterinary

4,782

100.00%

$0.00

$157

$0.39

$1,987

$4.99

$2,144

$5.38

Children's Orchard

4905

4,000

4.62%

$385

$1.15

$152

$0.46

$153

$0.46

$783

$2.35

$1,473

$4.42

Cliff Ranson Photography

4909

2,000

2.31%

$192

$1.15

$76

$0.46

$77

$0.46

$392

$2.35

$737

$4.42

Karlas LLC

4915

5,000

5.78%

$481

$1.15

$191

$0.46

$192

$0.46

$979

$2.35

$1,842

$4.42

Maxwell Salon

4917

3,000

3.47%

$289

$1.15

$114

$0.46

$115

$0.46

$587

$2.35

$1,105

$4.42

El Divino

5001

6,492

7.50%

$624

$1.15

$247

$0.46

$249

$0.46

$1,271

$2.35

$2,391

$4.42

Shannon Fine Jewelry

5007

1,880

2.17%

$181

$1.15

$72

$0.46

$72

$0.46

$368

$2.35

$693

$4.42

Quips & Quotes

5011

15,730

18.18%

$0.00

Butler's Barber Shop

5021

1,880

2.17%

$181

$1.15

$72

$0.46

$72

$0.46

$368

$2.35

$693

$4.42

Cryo Body Perfection

5103

2,750

3.18%

$264

$1.15

$105

$0.46

$105

$0.46

$538

$2.35

$1,013

$4.42

Hobbies & Heroes

5109

1,650

1.91%

$159

$1.15

$63

$0.46

$63

$0.46

$323

$2.35

$608

$4.42

5111

1,650

1.91%

$159

$1.15

$63

$0.46

$63

$0.46

$323

$2.35

$608

$4.42

Edibe Arrangements

5113A

1,650

1.91%

$159

$1.15

$63

$0.46

$63

$0.46

$323

$2.35

$608

$4.42

9 Round Fitness

5113B

1,650

1.91%

$159

$1.15

$63

$0.46

$63

$0.46

$323

$2.35

$608

$4.42

5115

28,560

33.01%

$2,092

$0.88

$0.00

$1,094

$0.46

$5,591

$2.35

$8,777

$3.69

Water

0.00%

$0.00

French CafÃ©

5101

2,750

3.18%

$264

$1.15

$105

$0.46

$105

$0.46

$538

$2.35

$1,013

$4.42

Available

5105

5,500

6.36%

$0.00

ATM

382

0.44%

$0.00

91,306

200%

$5,587

Mail-Pak

Office Depot Watermill Express LLC

TOTALS

$1,386

$2,644

$14,694

$24,311

F I N A N C I A L A N A LY S I S

L E A SE PROVIS ION S

Tenant

Suite

TOWN & CO U NT RY SH O P P ING C E NT E R

SQ FT

Base Rental Increases

Renewal Options

Date

PSF

Options

Date

PSF

User Restrictions & Exclusive Rights

Sales Reporting

National Veterinary

4,782

1x5

12/1/2023

FMV

Children's Orchard

4905

4,000

1x5

7/1/2020

FMV

LL covenants and represents to Tenant that LL will not permit or allow any other Tenants in the Center to sell any used items as enumerated in Tenant's use clause

Cliff Ranson Photography

4909

2,000

1x5

4/1/2019

FMV

Yes

Karlas LLC

4915

5,000

4x5

3/1/2024 3/1/2029 3/1/2034 3/1/2039

FMV FMV FMV FMV

Tenant has the exclusive right to sell jewelry, household accessories,including furniture and accessories, and related engraving and repair services

Yes

Maxwell Salon

4917

3,000

1x5

3/1/2022

FMV

Yes

El Divino

5001

6,492

1x5

7/1/2019

FMV

Yes

Shannon Fine Jewelry

5007

1,880

1x5

4/1/2020

FMV

LL, shall to the extent possible under present leases, present law and statutes and without prejudice or liability limit or refrain other Tenants sale of Tenants listed use merchandise or services (Exhibit F)

Yes

Quips & Quotes

5011

15,730

1x5

4/1/2022

$13.00

LL shall not permit another Tenant in the center to operate an "exclusively" gift store of similar merchandise to Tenants, in the center, or a department within their store which shall comprise 25% in area of the store or 25% of gross sales, which shall be in direct competition with Tenants merchandise lines or services. LL will not permit an exclusive "card shop" or the operation of a card department by an tenant that would comprise over 5% of the annual sales of the Tenant

Yes

Butler's Barber Shop

5021

1,880

1x5

8/1/2022

FMV

Cryo Body Perfection

5103

2,750

2x3

10/1/2019 10/1/2022

FMV FMV

Yes

F I N A N C I A L A N A LY S I S

L E A SE PROVIS ION S - CON T.

Tenant

Hobbies & Heroes

Suite

SQ FT

TOWN & CO U NT RY SH O P P ING C E NT E R

Base Rental Increases

Renewal Options

Date

PSF

Options

Date

PSF

User Restrictions & Exclusive Rights

Sales Reporting

5109

1,650

1/1/2019 1/1/2020 1/1/2021

$10.00 $11.00 $12.00

2x5

1/1/2022 1/1/2027

FMV FMV

Yes

5111

1,650

1x5

3/1/2021

FMV

Yes

Edibe Arrangements

5113A

1,650

1x5

2/1/2022

$20.98

LL shall not lease, permit any assignment, or sublet any lease in the Shopping Center, or otherwise permit any tenant whose primary use (50% of sales or more} is to sell floral fruit designs or basket in any portion of the Shopping Center

Yes

9 Round Fitness

5113B

1,650

1x3

3/1/2020

$15.85

Yes

5115

28,560

2x5

4/1/2020 4/1/2025

$9.15 $10.15

Landlord shall not suffer or permit any Occupant of the Shopping Center, other than Tenant, to: (i) use more than one thousand six hundred fifty (1,650) square feet of floor area (in the aggregate) for the sale, leasing, distribution or display of office supplies, including office furniture; office fixtures; office machines and equipment/electronics; computers (P.C.); computer hardware, software and accessories; cellular telephones and telecommunications equipment and devices; art supplies; architectural supplies; engineering supplies; photocopying services; facsimile services; or instant print shop services; or (ii) be primarily engaged in the sale, leasing, distribution or display of the items set forth in (i) above. No space in or portion of any real property adjacent to or within five hundred feet (500') of the Shopping Center which is now or may subsequently be acquired by Landlord (or a related entity or affiliate of Landlord), shall be leased or occupied by or conveyed to any other party for a competing use in violation of the Tenant's exclusive use set forth in this paragraph, except that such restriction shall not apply to telephones and telecommunciations equipment and devices, art supplies, architectural supplies or engineering supplies. (Memorandum, A)

Water

French CafĂŠ

5101

2,750

9/1/2019 9/1/2020

$11.00 $11.75

1x5

9/1/2023

FMV

Yes

Available

5105

5,500

ATM

382

Mail-Pak

Office Depot

Watermill Express LLC

TOTAL

91,306

F I N A N C I A L A N A LY S I S

TE NA NT INF ORMAT I ON

TOWN & CO U NT RY SH O P P ING C E NT E R

Company

Office Depot

Corporate/Franchise

Corporate

Public/Private

Public

Locations

1,400+ Locations

Website

www.officedepot.com

Line of Business

Office Depot is a leading provider of business services and supplies, products and technology solutions through its fully integrated omni-channel platform of approximately 1,400 stores, online presence and dedicated sales professionals and technicians to small, medium and enterprise businesses. Through its banner brands Office Depot, OfficeMax, CompuCom and Grand&Toy, the company offers its customers the tools and resources they need to focus on their passion of starting, growing and running their business.

Company

Children’s Orchard

Corporate/Franchise

Franchise

Public/Private

Private

Locations

26 Locations

Website

www.childrensorchard.com

Line of Business

Children’s Orchard is an upscale resale store that offers a new and fun shopping experience for both parents and kids. Because children so often outgrow their clothes before they are hardly worn, Children’s Orchard provides a solution for customers to sell their items for cash and buy like-new items for up to 70% off of original retail prices. To help make shopping a bit less stressful, each Children’s Orchard has a fun and safe play area where kids can watch videos, use toys and just hangout while their parents shop. Dressing rooms are large so families are comfortable when trying on items to make sure they fit.

PROPERTY DESCRIPTION

TE NA NT INF ORMAT I ON

TOWN & CO U NT RY SH O P P ING C E NT E R

Company

Edible Arrangements

Corporate/Franchise

Franchise

Public/Private

Private

Locations

More than 1,200 stores worldwide; this Franchisee has one location

Website

www.ediblearrangements.com

Line of Business

Edible Arrangement specializes in fresh fruit arrangements, melding the concept of fruit baskets with designs inspired by the floral business. Founded in East Haven, Connecticut in 1999, Edible Arrangement stores also sells a variety of specialty fruit gift items, such as gift boxes featuring premium chocolate dipped fruit and fresh-fruit-to-go products, for pick-up or delivery, seven days a week. The business had grown to more than 1,200 stores across the globe.

Company

9 Round Fitness

Corporate/Franchise

Franchise

Public/Private

Private

Locations

700+ Locations

Website

www.9round.com

Line of Business

9Round is a specialized fitness center for people who want a unique, fun, and proven workout that guarantees results. 9Round offers a kickboxing themed fitness program that incorporates a functional, interval, cardiovascular and circuit training regimens. The programs consist of a proprietary system of nine challenging workout stations developed by a World Champion Kickboxer.

PROPERTY DESCRIPTION

PRO PERT Y IMAGERY

TOWN & CO U NT RY SH O P P ING C E NT E R

PROPERTY DESCRIPTION

S I T E PL A N - 5007 N 10T H ST

TOWN & CO U NT RY SH O P P ING C E NT E R

NOT A PART

Watermill Express

PROPERTY DESCRIPTION

S I T E PL A N - 6001 N 10T H ST

TOWN N AT & CO IO NUANT L VRY E TSH ERO INPAPRY ING B UIL C E NT D INEG R

PROPERTY DESCRIPTION

A E R I AL MA P - 5 007 N 10T H ST

TOWN & CO U NT RY SH O P P ING C E NT E R

NATIONAL VETERINARY BUILDING

DOVE A VE

24,338 V PD

N 10TH

16,900 VPD

TOWN & COUNTRY SHOPPING CENTER

N O L AN

A AVE

33,410 VPD

PROPERTY DESCRIPTION

A E R I AL MA P - 6001 N 10T H ST

TOWN N AT & CO IO NUANT L VRY E TSH ERO INPAPRY ING B UIL C E NT D INEG R

DR. PABLO PEREZ ELEMENTARY SCHOOL

MORRIS MIDDLE SCHOOL

23,469 VPD

N RD

29,892 VP D

N 10TH

NATIONAL VETERINARY BUILDING

TRENTO

DOVE A VE

20,684 VP D PROPERTY DESCRIPTION

LO C AL MA P

TOWN & CO U NT RY SH O P P ING C E NT E R

National Veterinary Building

Town & Country SC

PROPERTY DESCRIPTION

REG IONA L MA P

TOWN & CO U NT RY SH O P P ING C E NT E R

Town & Country SC

PROPERTY DESCRIPTION

M A R KET S U MMARY

TOWN & CO U NT RY SH O P P ING C E NT E R

McAllen, TX

OVERVIEW McAllen is the twenty-first most populous city in Texas and the largest city in Hidalgo County, Texas, United States. It is located at the southern tip of Texas in the Rio Grande Valley and is part of the Southern United States. It is on the Rio Grande, across from the Mexican city of Reynosa, and is approximately 70 miles (110 km) west of South Padre Island and the Gulf of Mexico. McAllen is often referred to as the retail center of Southern Texas and Northern Mexico. In fact, the region’s La Plaza Mall makes the most sales per square foot of any shopping mall in the country. The 2010 United States census put the city’s population at 129,877 and the McAllen–Edinburg– Mission metropolitan area at 774,773. It is ranked the fifth most populated metropolitan area in the state of Texas. The Reynosa–McAllen Metropolitan Area counts a population of nearly 1.5 million. The McAllen– Edinburg–Mission metropolitan area is also one of the fastest growing metropolitan areas in the United States.

The metro area is also a haven for those crossing the border from Mexico to Texas. As of August 2015, Catholic Charities of the Rio Grande Valley, along with the Sacred Heart Church in McAllen, have helped more than 23,000 people looking to make a new life for themselves in the U.S. As a result, Hispanic culture is strong in the area, with numerous Mexican restaurants found throughout the region and Mexican festivals taking place during the year. McAllen has seen year-over-year job growth of around 2.5 percent. Education and health services make up two of the largest employment sectors in McAllen thanks to top employers like the McAllen Independent School District, South Texas College, the University of Texas-Rio Grande Valley, McAllen Medical Center and Rio Grande Regional Hospital. There are also opportunities in the public sector, including with the City of McAllen. Other major employers include BBVA Compass Bank, IBC Bank and GE Engines.

PROPERTY DESCRIPTION

D E M OG RA PHIC STAT I ST I CS

TOWN & CO U NT RY SH O P P ING C E NT E R

1 MILE

3 MILE

5 MILE

15,401 14,506 12,784 6.17% 13.47% 11,057

114,626 108,320 97,632 5.82% 10.95% 92,557

256,409 242,103 217,014 5.91% 11.56% 213,126

13,461 254 87 551 4 149 0

101,556 1,627 639 3,641 69 788 26

229,828 2,978 1,486 6,189 140 1,481 96

5,635 5,327 4,802 5.78% 10.93% 2,932 2,395 $85,266 $59,060

36,568 34,662 31,795 5.50% 9.02% 20,927 13,735 $70,805 $51,652

79,183 74,981 68,337 5.60% 9.72% 46,876 28,106 $67,023 $47,889

1,178 1,143 850 633 409 274 423 417

9,569 7,273 6,486 3,457 2,865 1,659 1,781 1,575

21,831 17,011 12,993 7,027 5,966 3,746 3,657 2,749

Population: 2023 Projection 2018 Estimate 2010 Census Growth 2018-2023 Growth 2010-2018 2018 Population Hispanic Origin

2018 Population by Race:

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

Households:

2023 Projection 2018 Estimate 2010 Census Growth 2018 - 2023 Growth 2010 - 2018 Owner Occupied Renter Occupied 2018 Avg Household Income 2018 Med Household Income

2018 Households by Household Inc: <$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+

P R O P E R T Y D E S C R I P T I O N 20

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.

Commercial Disclaimer STRIVE hereby advises all prospective purchasers of commercial 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 commercial 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 commercial 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 commercial 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 tenants 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 tenants 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 leases, including the likelihood of locating replacement tenants if any of the current tenants should default or abandon the property, and the lease terms that Buyer may be able to negotiate with any potential replacement tenants 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 commercial 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

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