Twisted Spigot - Lubbock, TX by STRIVE

TWISTED SPIGOT LUBBOCK, TX

PRICING & FINANCIAL ANALYSIS

TWISTED SPIGOT

FINANCIAL ANALYSIS

Twisted Spigot 8222 University Avenue Lubbock, TX 79423

Annualized Operating Data Year(s)

Increase

5/1/2017

$150,000

5/1/2018

$151,500

1.00%

$2,098,000

5/1/2019

$153,015

1.00%

7.15%

5/1/2020

$154,545

1.00%

$150,000

5/1/2021

$156,091

1.00%

2002

5/1/2022

$157,652

1.00%

5,000 SF

5/1/2023

$159,228

1.00%

0.88 Acres

5/1/2024

$160,820

1.00%

5/1/2025

$162,429

1.00%

5/1/2026

$164,053

1.00%

5/1/2027

$165,693

1.00%

15 Years

5/1/2028

$167,350

1.00%

Lease Commencement

05/22/2017

5/1/2029

$169,024

1.00%

Lease Expiration

05/31/2032

5/1/2030

$170,714

1.00%

Remaining Term

15 Years

5/1/2031

$172,421

1.00%

NNN

Option 1: 16-20

5/1/2032

$181,042

5.00%

Tenant

Option 2: 21-25

5/1/2037

$190,094

5.00%

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

Lease Summary Lease Term

Lease Type Roof & Structure Increases

1% Annual

Option 3: 26-30

5/1/2042

$199,599

5.00%

Options

4 x 5 Year

Option 4: 31-35

5/1/2047

$209,579

5.00%

Options to Purchase

None

Net Operating Income

MARKET OVERVIEW

Annual

PROPERTY DESCRIPTION

Commencement

$150,000

NOTE: Tenant is scheduled to open May 22, 2017, but subject to change Rent Commencement 60 days after opening for business.

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 2015 Vitorino Group

TENANT INFORMATION

TWISTED SPIGOT

FINANCIAL ANALYSIS

Tenant Summary Company Ownership

Twisted Spigot Private

Number of Locations Twisted Spigot where amazing viewership, combined with hearty pub fare, 52 craft beers being served up by the most talented and highly trained team from Coast to Coast. Featuring all sports packages (including UFC fights), a full bar and a mouthwatering menu offering a variety of sliders, wings, burgers, artisan pizzas and shareables. The building/atmosphere is Upscale and inviting. High-end finishes to include granite counter tops, stacked stone fireplaces, stacked stone patio fire pits, warm wood trim and wainscot. Extensive display of 3050 Large Screen LCD Displays, showcasing all sports packages and pay-per-view events including UFC, ensuring every seat has a view.

Website

5+ San Diego, CA www.twistedspigot.com

NOTE: Twisted Spigot’s strategic growth includes opening 12 locations per year through 2020. Through 2025 expansion will continue beyond 20-35 units annually, of those 70% being franchised locations and 30% being corporate locations, with the vision of controlled growth of 350 stores through 2025. A large commitment from a private equity source has already been established.

MARKET OVERVIEW

The Twisted Spigot brings a well-rounded executed team of restaurant veterans to the table with over 60 years of combined experience. The executive’s diversity in skills compliments the vision and ability to deliver on the concept with extensive expertise in each of their areas including Casual Dining, Finance, Operations, Human Resources, Training, Sports fare, and Marketing. Twisted Spigot’s team has plans for controlled growth to 100 corporate stores and 250 franchise locations (domestic and international) through 2025.

Headquarters

PROPERTY DESCRIPTION

Twisted Spigot Pub and Eatery is a pub and eatery, whose design is to promote great craft beers and serve meals inspired by comfort foods, served with a little twist. Twisted Spigot is headquartered in San Diego, CA with locations throughout Texas and more locations opening in New Mexico.

INVESTMENT HIGHLIGHTS

TWISTED SPIGOT

FINANCIAL ANALYSIS

• New Long-Term Lease – 15 Years Remaining • Absolute NNN Responsibilities

Lease

–

Zero

Landlord

• Annual Rental Increases – Provides Hedge Against Inflation • Growing Concept with Experienced Industry Management Team - Growing at 12 Locations per Year

PROPERTY DESCRIPTION

• Lubbock is Home to Texas Tech University with an Enrollment of over 36,000 Students – Ideal Consumer Base for Twisted Spigot • Located in Rapidly Growing Part of Lubbock – Area Population has Increased by Approximately 20% since 2000 • Pad Site to Cinemark Theatre Development – Provides Strong Consumer Base Traffic to Area

MARKET OVERVIEW

• Surrounding Retailers Include Cinemark, Chickfil-A, Buffalo Wild Wings, Walgreens, Starbucks, Dunkin Donuts, CVS Pharmacy, Target and Many Others • Dense Residential Area - Five-Mile Population Exceeds 174,000 People • Traffic Counts Along University Avenue Exceed 31,000 Vehicles per Day

AERIAL MAP

TWISTED SPIGOT

PROPERTY DESCRIPTION

UNIVERSITY AVE

Waters Elementary School

FINANCIAL ANALYSIS

HWY 289

82ND ST MARKET OVERVIEW

LOCAL MAP

TWISTED SPIGOT

FINANCIAL ANALYSIS PROPERTY DESCRIPTION MARKET OVERVIEW

REGIONAL MAP

TWISTED SPIGOT

FINANCIAL ANALYSIS PROPERTY DESCRIPTION MARKET OVERVIEW

MARKET SUMMARY

TWISTED SPIGOT

FINANCIAL ANALYSIS PROPERTY DESCRIPTION

LUBBOCK, TX com. CNN mentioned the city’s traditional business atmosphere: low rent for commercial space, central location, cooperative city government. Lubbock High School has been recognized for three consecutive years by Newsweek as one of the top high schools in the United States. Lubbock High School is home to the only international baccalaureate (IB) program in the region. The IB program is one of the criteria examined by Newsweek in formulating their list of top high schools. The Lubbock area is the largest contiguous cottongrowing region in the world and is heavily dependent on federal government agricultural subsidies and irrigation water drawn from the Ogallala Aquifer. However, the aquifer is being depleted at an unsustainable rate in the long term. Much progress has been made in the area of water conservation, and new technologies, such as low-energy precision application (LEPA) irrigation were originally developed in the Lubbock area. The new pipeline from Lake Alan Henry is expected to supply up to 3.2 billion US gallons (12,000,000 m3) of water per year.

MARKET OVERVIEW

Lubbock is the county seat of Lubbock County, Texas. The city is located in the northwestern part of the state, a region known historically and geographically as the Llano Estacado and ecologically is part of the southern end of the Western High Plains. Lubbock has three universities: Lubbock Christian University, Texas Tech University, and Texas Tech University Health Sciences Center. According to a 2013 Census estimate, Lubbock had a population of 239,538, making it the 84th most populous city in the United States of America and the 11th most populous city in the state of Texas. The city is the economic center of the Lubbock metropolitan area, which had an estimated 2013 population of 301,038. Lubbock’s nickname, “Hub City”, derives from it being the economic, education, and health care hub of the multicounty region, north of the Permian Basin and south of the Texas Panhandle, commonly called the South Plains. The area is the largest contiguous cotton-growing region in the world and is heavily dependent on water drawn from the Ogallala Aquifer for irrigation. Lubbock was selected as the 12th best place to start a small business by CNNMoney.

DEMOGRAPHIC SUMMARY

TWISTED SPIGOT

Geography: 5 Miles

FINANCIAL ANALYSIS

Population In the identified area, the 2016 population was 174,558. The rate of change since 2000 was 19.4%. The five-year projection for the population in the area is 184,769 representing a change of 5.8% from 2016 to 2021. In 2016, the population was 49.3% male and 50.7% female. The median age in this area was 31.8, compared to U.S. median age of 38.0.

Households In 2016, there were 66,747 households in your selected geography. The number of households has changed by 16.8% since 2000. It is estimated that the number of households in your area will be 70,590 in 2021, which represents a change of 5.7% from 2016. The average household size in your area was 2.47 persons.

PROPERTY DESCRIPTION

Income In 2016, the median household income for your selected geography was $46,434, compare this to the Entire US average which is currently $54,149. It is estimated that the median household income in your area will be $48,766 in 2021, which represents a change of 5.0% from2016. In 2016, the per capita income in your area was $26,231 compare this to the Entire US average, which is $29,472. The 2016 average household income in your area is $66,809 compare this to the Entire US average which is $77,008.

Race and Ethnicity The 2016 racial makeup of your selected area is as follows: 77.3% White, 7.0% Black, 0.8% Native American and 2.2% Asian/Pacific Islander. Compare these to Entire US 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 32.8% of the 2016 population in your selected area. Compare this to the Entire US average of 17.9%.

Housing MARKET OVERVIEW

In 2016, there were 36,044 owner occupied housing units in your area and there were 30,703 renter occupied housing units in your area. Median home value in the area was $135,032 compared to a median home value of $198,891 for the U.S.

Employment In 2016, there were 82,614 employees in your selected area, this is also known as the daytime population. In 2016, 63.2% of employees were employed in white-collar occupations in this geography, and 17.0% were employed in blue-collar occupations. In 2016, unemployment in this area was 4.4%.

Demographic data ÂŠ 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. ÂŠ 2015 Vitorino Group

DEMOGRAPHIC STATISTICS

TWISTED SPIGOT

1-Mile

3-Miles

5-Miles

Income

1-Mile

3-Miles

5-Miles

2000 Population

12,777

67,974

146,225

$ 0 - $14,999

9.3%

11.2%

15.3%

2010 Population

15,051

78,374

162,460

$ 15,000 - $24,999

10.5%

10.7%

11.7%

2016 Population

15,796

83,019

174,558

$ 25,000 - $34,999

13.0%

11.5%

11.6%

2021 Population

16,586

87,589

184,769

$ 35,000 - $49,999

16.9%

15.4%

14.0%

$ 50,000 - $74,999

22.6%

19.2%

17.1%

$ 75,000 - $99,999

14.9%

12.4%

11.7%

$100,000 - $149,999

9.7%

11.5%

10.9%

1-Mile

3-Miles

5-Miles

$150,000 - $199,999

1.8%

3.5%

3.6%

2000 Households

5,134

27,325

57,170

$200,000+

1.3%

4.6%

4.1%

2010 Households

6,113

31,019

62,579

2016 Median Household Income

$50,138

$51,014

$46,434

2016 Households

6,393

32,567

66,747

2016 Per Capita Income

$24,071

$28,372

$26,231

2021 Households

6,703

34,229

70,590

2016 Average Household Income

$59,912

$71,530

$66,809

2016 Daytime Population

8,384

40,500

82,614

2.47

2.53

2.47

2010 Owner Occupied Housing Units

61.8%

60.2%

52.4%

2010 Renter Occupied Housing Units

33.0%

33.8%

40.1%

5.2%

6.0%

7.5%

2016 Owner Occupied Housing Units

57.4%

57.1%

49.6%

2016 Renter Occupied Housing Units

37.2%

36.2%

42.3%

2016 Vacant

5.4%

6.7%

8.1%

2021 Owner Occupied Housing Units

56.5%

57.0%

49.6%

2021 Renter Occupied Housing Units

38.0%

36.2%

42.4%

5.5%

6.7%

8.1%

2016 Average Household Size

2010 Vacant

Traffic Counts

24,000 MARKET OVERVIEW

2021 Vacant

PROPERTY DESCRIPTION

Households

FINANCIAL ANALYSIS

Population

31,447

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 Vitorino Group and it should not be made available to any other person or entity without the written consent of Vitorino Group. 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 Vitorino Group. 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. Vitorino Group 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, Vitorino Group has not verified, and will not verify, any of the information contained herein, nor has Vitorino Group 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 THE VITORINO GROUP AGENT FOR MORE DETAILS.

Net Lease Disclaimer Vitorino Group 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, the Vitorino Group has not and will not verify any of this information, nor has the Vitorino Group conducted any investigation regarding these matters. The Vitorino Group 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. The Vitorino Group 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 The Vitorino Group 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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