Ensenada Square - Arlington, TX

ENSENADA SQUARE ARLINGTON, TX

PRICING & FINANCIAL ANALYSIS

ENSENADA SQUARE

FINANCIAL ANALYSIS

Ensenada Square 301 S Bowen Road Arlington, TX 76013

Offering Summary Price Cap Rate Net Operating Income

$6,359,625 7.50% $476,972

Price PSF

$101.55

Occupancy

100.0%

Gross Leasable Area Lot Size

1978

PROPERTY DESCRIPTION

Year Built

62,628 SF 5.94 Acres

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

2

PRICING & FINANCIAL ANALYSIS

ENSENADA SQUARE

Base Rent - Occupied Space

100%

GROSS POTENTIAL RENT

Current

PSF

Expenses

Current PSF

$483,326

$7.72

Real Estate Taxes

$137,316

$2.19

$483,326

$7.72

Insurance

$19,800

$0.32

CAM

Expense Reimbursements $47,644

$0.76

Janitorial Contract

$7,600

$0.12

Management Fee Recoveries

$19,469

$0.31

Janitorial Other

$4,600

$0.07

Insurance Recoveries

$20,316

$0.32

Trash Removal

$1,000

$0.02

Real Estate Tax Recoveries

$140,333

$2.24

Roof Repairs and Maintenance

$1,000

$0.02

Total Expense Reimbursements

$227,762

$3.64

Plumbing Repairs and Maintenance

$9,600

$0.15

$711,088

$11.35

Security Contract

$8,800

$0.14

Landscape Contract

$1,000

$0.02

$48,700

$0.78

Landscape Materials and Repairs

$4,400

$0.07

$28,300

$0.45

Parking Light Maintenance

$1,000

$0.02

Total Insurance

$19,800

$0.32

Parking Repairs and Maintenance

$1,500

$0.02

Total Real Estate Taxes

$137,316

$2.19

Snow and Ice Removal

$8,200

$0.13

$234,116

$3.74

Common Area Electric

$2,722

$0.04

$476,972

$7.62

Water and Sewer

$5,819

$0.09

$48,700

$0.78

$28,300

$0.45

$234,116

$3.74

EFFECTIVE GROSS REVENUE Operating Expenses Total CAM

Total Recoverable Expenses Net Operating Income Capitalization Rate *Argus model available upon request

4.00%

7.50%

Total CAM Management Fee Total Expenses

4.00%

PROPERTY DESCRIPTION

CAM Recoveries

Management Fee

FINANCIAL ANALYSIS

Projected Income & Expenses

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. Š 2017 STRIVE

3

RENT ROLL

ENSENADA SQUARE Minimum Rent

Recoveries

Total

Tenant

Suite

Sq Ft

% of Sq Ft

Start

End

Annual

Monthly

PSF

Annual

PSF

Revenue

Kroger

301

39,619

63.26%

02/98

02/23

$198,089

$16,507

$5.00

$139,753

$3.53

$337,842

47.51%

A Smile Above

311

2,350

3.75%

04/15

08/25

$29,375

$2,448

$12.50

$12,034

$5.12

$41,409

5.82%

A Smile Above (expansion)

315

1,857

2.97%

04/18

08/25

$23,213

$1,934

$12.50

$9,510

$5.12

$32,722

4.60%

Nail Salon

317

1,700

2.71%

12/10

11/20

$17,304

$1,442

$10.18

$10,761

$6.33

$28,065

3.95%

Family Dollar

323

10,034

16.02%

07/08

06/21

$108,900

$9,075

$10.85

$29,803

$2.97

$138,703

19.51%

Salon Ensenada

331

3,568

5.70%

09/11

09/21

$57,445

$4,787

$16.10

$13,068

$3.66

$70,513

9.92%

Ft. Worth Credit Union

333

3,500

5.59%

03/12

02/19

$49,000

$4,083

$14.00

$12,833

$3.67

$61,833

8.70%

Total Count/GLA

7

62,628

100%

$483,326

$40,277.15

$711,088

100.00%

Occupied

7

62,628

100%

Available

0

0

0.0%

62,628

100%

$7.72

% of

Revenue

PROPERTY DESCRIPTION

Total Avg Rent

$227,762

FINANCIAL ANALYSIS

Lease Dates

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. Š 2017 STRIVE

4

ESTIMATED REIMBURSEMENT REVENUE

ENSENADA SQUARE Management Fee

Insurance

Real Estate Taxes

Total Recovery

Tenant

Suite

Sq Ft

% of Sq Ft

Monthly

PSF

Monthly

PSF

Monthly

PSF

Monthly

PSF

Monthly

PSF

Kroger

301

39,619

63.26%

$1,871

$0.57

$1,492

$0.45

$1,044

$0.32

$7,239

$2.19

$11,646

$3.53

A Smile Above

311

2,350

3.75%

$462

$2.36

$0.00

$0.00

$68

$0.35

$472

$2.41

$1,003

$5.12

A Smile Above (expansion)

315

1,857

2.97%

$365

$2.36

$0.00

$0.00

$54

$0.35

$373

$2.41

$792

$5.12

Nail Salon

317

1,700

2.71%

$404

$2.85

$131

$0.92

$52

$0.36

$311

$2.19

$897

$6.33

Family Dollar

323

10,034

16.02%

$386

$0.46

$0.00

$0.00

$264

$0.32

$1,833

$2.19

$2,484

$2.97

Salon Ensenada

331

3,568

5.70%

$231

$0.78

$0.00

$0.00

$108

$0.36

$750

$2.52

$1,089

$3.66

Ft. Worth Credit Union

333

3,500

5.59%

$250

$0.86

$0.00

$0.00

$103

$0.35

$716

$2.46

$1,069

$3.67

62,628

100%

$3,970

$1,622

$1,693

$11,694

$18,980

PROPERTY DESCRIPTION

Totals

FINANCIAL ANALYSIS

CAM

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

5

LEASE PROVISIONS

ENSENADA SQUARE Renewal Options

User Restrictions & Exclusive uses

Termination Rights

Sales Reporting

Suite

Sq Ft

Date

PSF

Kroger

301

39,619

-

-

Five 5-yr options at the same LL will not lease space to rate of $5.00 psf. a pharmacy, food store, health store, or disco

No

Yes

A Smile Above

311

2,350

May-19 May-21 May-23

$13.25 $14.25 $15.25

Two 5-yr renewal @ $15.75 and Exclusive right to operate $18.25 respectively with 3% general or pediatic dentist annual bumps

No

Yes, at LL Request

A Smile Above (Expansion)

315

1,857

May-19 May-21 May-23

$13.25 $14.25 $15.25

Two 5-yr renewal @ $15.75 and Exclusive right to operate $18.25 respectively with 3% general or pediatic dentist annual bumps

No

Yes, at LL Request

Nail Salon

317

1,700

Dec-17 Dec-18 Dec-19

$10.17 $10.48 $10.79

None

Exclusive right to operate a nail salon

No

Yes

Family Dollar

323

10,034

-

-

3- 5-year options at $11.93, Exclusive: LL will not lease $13.13 and $14.44 per SF space to another discount, dollar, or thrift store Restriction: no more than 5% of the store can be used for the sale of groceries

No

No

Salon Ensenada

331

3,568

Sep-17 Sep-19 Sep-20

$16.10 $16.60 $17.10

-

-

No

No

Ft. Worth Credit Union

333

3,500

-

-

-

None

No

No

62,628

MARKET OVERVIEW

Totals

PROPERTY DESCRIPTION

Tenant

FINANCIAL ANALYSIS

Base Rental Increases

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. Š 2017 STRIVE

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TENANT INFORMATION

ENSENADA SQUARE

FINANCIAL ANALYSIS

Tenant Summary Entity on Lease DBA Locations Kroger is known as “America’s Grocer,” and serves over 8.5 million people every day in nearly 2,800 supermarkets across the US. Kroger offers thousands of quality food and household products from your favorite brands and companies. From fresh produce, meats and seafood to dairy, home goods and pharmaceutical needs, Kroger is your one stop for savings.

Ownership Credit Rating Annual Revenue Public/ Private

Kroger 2,778 across the US Corporate Baa1 (Moody's) $115.34 billion in revenue in 2016 KR (NYSE) www.kroger.com

PROPERTY DESCRIPTION

Website

Kroger Limited Partnership I

Tenant Summary Entity on Lease DBA Locations Ownership Credit Rating Annual Revenue Public/ Private Website

Family Dollar Over 8,000 stores in 46 states Corporate Baa3 (Moody's) $20.7 billion in sales in 2016 (Parent Company Dollar Tree)

MARKET OVERVIEW

For over 50 years, Family Dollar has provided their customers with value and convenience. With the help of their vendor community they are able to keep their costs low, enabling them to pass those savings down to their customer. Family Dollar is committed to the communities they serve, not only by offering quality merchandise at low prices, but also by supporting the non-profit organizations that seek to improve the quality of life of their customers and Team Members.

Family Dollar Stores of Texas, LLC

DLTR (NYSE: Parent Company Dollar Tree) www.familydollar.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

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TENANT INFORMATION

ENSENADA SQUARE

FINANCIAL ANALYSIS

Tenant Summary Fort Worth Federal Credit Union, Arlington Branch

Entity on Lease DBA

Fort Worth Community Credit Union

Locations Fort Worth Community Credit Union currently has over 83,000 members, and FWCCU’s goal is to offer customers a safe a secure place to manage their financial affairs. FWCCU strives to provide loan rates and investment rates that return value to thier members.

11 Locations across DFW

Ownership

Private

Credit Rating

Over $775 million in deposits across their 11 locations

Public/ Private Website

PROPERTY DESCRIPTION

Annual Revenue

Not Rated

Private www.ftwccu.org

Tenant Summary Entity on Lease DBA Locations Ownership Credit Rating

A Smile Above One Location Private Not Rated

Annual Revenue

Private

Public/ Private

Private

Website

MARKET OVERVIEW

A Smile Above’s mission is to provide their patients with the highest quality of dental care available. Dr. Michael Stevens has been providing outstanding dental care since 2006. He earned his doctorate from the University of Texas at Houston Dental School.

Pentego Dentist, LLC

www.familydentistarlingtontx.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

8

INVESTMENT HIGHLIGHTS

ENSENADA SQUARE

FINANCIAL ANALYSIS

Stability: Kroger has been located in Ensenada Square for 20 years and recently exercised a 5 year extension.

Kroger: Ensenada Square is anchored by Kroger, the largest super market chain in the US (by revenue, grossing $115.34 billion in 2016).

Kroger is an upscale neighborhood grocer with 2,778 locations all across the US. This location’s sales have remained steady right at $460 psf since 2013. Additionally, any future increase in sales can result in percentage revenue as they are hovering just below their annual breakpoint.

PROPERTY DESCRIPTION

Exceptional Demographics: Ensenada Square is situated within the high growth and densely populated residential area of Arlington.

Within a three mile radius of the Property there are 114,346 people increasing to 282,938 people within five miles. The area is expected to grow an additional 7.62% (Average growth in a one, three, and five mile radius) over the next five years. Furthermore, the average household incomes within one, three and five miles are $73,554, $69,925 and $68,264 respectively.

Exceptional Positioning with High Traffic Counts: Ensenada Square benefits from its position at the northeast corner of S Bowen Road and Norwood Lane, a thoroughfare with more than 21,000 vehicles per day, while Norwood Lane carries over 11,300 cars per day.

Outstanding Tenant Longevity: The Property has seen high tenant retention with 93% of the current tenant lineup at the Property for 5 years or more.

MARKET OVERVIEW

Complementary Tenant Line-up: Anchored by Kroger, Ensenada Square is a neighborhood center that combines specialty retail and service tenants which generate steady traffic and promote crossshopping. The tenant lineup includes Kroger, Family Dollar, A Smile Above, Fort Worth Credit Union, Nail Salon, and Salon Ensenada.

University of Texas - Arlington: One of the nation’s largest public universities with approximately 37,000 students, UT Arlington is the second-largest in the University of Texas System. Ensenada Square benefits from its close proximity to UT Arlington just 2.5 miles east.

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

9

INVESTMENT HIGHLIGHTS

313-315

FINANCIAL ANALYSIS

Suite

ENSENADA SQUARE

Tenant A Smile Above

317

Nail Salon

321

Family Dollar

331

Salon Ensenada

333

Fort Worth Community Credit Union

313 - 315

317

331

333

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. Š 2017 STRIVE

10

AERIAL MAP

ENSENADA SQUARE

FINANCIAL ANALYSIS PROPERTY DESCRIPTION

S BOWEN ROAD

University of Texas at Arlington

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. Š 2017 STRIVE

MARKET OVERVIEW

Swift Elementary School

11

LOCAL MAP

ENSENADA SQUARE

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. Š 2017 STRIVE

12

REGIONAL MAP

ENSENADA SQUARE

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. Š 2017 STRIVE

13

SURROUNDING GROCERS MAP

ENSENADA SQUARE

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. © 2017 STRIVE

14

LEASE COMPARABLES

GLA

Year Built

Occupancy

Major Tenants

Available

Rental Rates

NNN

Ensenada Square 301 S Bowen St.

60,771

1978

100.0%

Kroger, A Smile Above, Family Dollar, Salon Ensenada, Ft. Worth Credit Union

0

$5.00 - 15.60

$3.57

1

Four Corners Shopping Center 2211-2247 S. Cooper St.

71,803

1975 / 1990

100.0%

Party City, dd's Discounts, Half Priced Books

0

$12.00 - $20.00

$4.04

175,258

1968 / 1996

74.9%

Tom Thumb, Petco, Papa John's, Bank of America, Anytime Fitness, Goodyear, Tuesday Morning

43,956

$7.00 - $19.50

$3.17

Woodland West Marketplace 2 2611-2833 W. Park Row Dr. Arlington, TX

Pioneer Plaza 2208 S. Fielder Rd.

105,061

1975

90.2%

Kroger, Sally Beauty Supply, Subway, CATO, GNC, Affordable Auto Insurance

10,344

$9.00 - $18.00

$4.97

4

Arlington Plaza 1501-1529 S. Cooper St.

63,403

1966

89.3%

Family Dollar, Cook Children's, Jefferson Dental, Subway, Boost Mobile

6,766

$12.00 - $18.50

$4.25

5

Rush Creek Centre 2216 S. Bowen Rd.

75,931

1985

92.2%

Walmart Neighborhood, H&R Block, TMobile, Subway, Angelo's Pizza

5,924

$10.00 - $12.00

$4.21

78.9%

State Farm, Capuli Chiropractic, Woodhaven National Bank, Kiddo's Kloset Resale, Arlington Self-Defense

8,400

$9.00 - $12.00

$2.55

Park Row West 6 2221-2229 W Park Row Dr.

39,796

1998

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

MARKET OVERVIEW

3

PROPERTY DESCRIPTION



FINANCIAL ANALYSIS

Property Name

ENSENADA SQUARE

15

LEASE COMPARABLES

ENSENADA SQUARE

FINANCIAL ANALYSIS

Ensenada Square

1

Four Corners Shopping Center

2

Woodland West Marketplace

3

Pioneer Plaza

4

Arlington Plaza

5

Rush Creek Centre

6

Park Row West

PROPERTY DESCRIPTION

2

6 4

5

3

1 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. Š 2017 STRIVE

16

MARKET SUMMARY

ENSENADA SQUARE

FINANCIAL ANALYSIS PROPERTY DESCRIPTION

DALLAS, TX Dallas encompasses half of the Dallas/Fort Worth Metroplex and is the third-largest city in Texas and the ninth-largest city in the United States.

Dallas is home to the third-largest concentration of Fortune 500 companies in the country and is the largest economic center of the Dallas/Fort Worth metropolitan area. The Metroplex has strong submarket occupancy rates, is home to more shopping centers per capita and has one of the largest concentrations of corporate headquarters for publicly traded companies in the United States.

Dallas is the best-ranked city on the Regulatory Climate Index thanks to its efficient local regulations.

Entrepreneurs and small businesses can expect a welcoming business environment across all five areas of local regulation. Dallas scores above average across each meaningful measure of an interaction that a business has with a local government agency through procedure, time, and cost. These rankings reflect the city’s continuing efforts to develop programs and initiatives to strengthen the business environment, provide access to capital, and encourage economic growth at the local level.

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

MARKET OVERVIEW

The city is the largest economic center of the 12-county Dallas–Fort Worth–Arlington metropolitan area, which had a population of 6,810,913 people as of July 1, 2013. The metropolitan economy is the sixth largest in the United States, with a 2012 real GDP of $420.34 billion. In 2013 the metropolitan area led the nation with the largest year-over-year increase in employment, and advanced to become the fourth-largest employment center in the nation (behind New York City, Los Angeles, and Chicago) with more than three million non-farm jobs. In the

latest rankings released in 2013, Dallas was rated as a “beta plus” world city by the Globalization and World Cities Study Group & Network. Dallas is also ranked 14th in world rankings of GDP by the Organization for Economic Co-operation and Development. The Dallas-Fort Worth Metroplex has one of the largest concentrations of corporate headquarters for publicly traded companies in the United States. The city of Dallas has 12 Fortune 500 companies, and the DFW region as a whole has 20.

17

DEMOGRAPHIC STATISTICS

ENSENADA SQUARE 1 Mile

3 Mile

5 Mile

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

16,407 15,229 13,800 7.74% 10.36% 3,272

114,346 106,437 98,101 7.43% 8.50% 25,735

304,697 282,938 256,926 7.69% 10.12% 83,694

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

12,087 2,277 124 340 33 367 8

75,563 20,754 1,067 6,125 175 2,753 71

192,133 62,259 2,718 18,265 517 7,046 119

6,668 6,201 5,669 7.53% 9.38% 3,429 2,772 $73,554 $53,000

45,355 42,262 39,203 7.32% 7.80% 21,184 21,077 $69,925 $48,636

117,090 108,758 98,855 7.66% 10.02% 55,309 53,449 $68,264 $49,448

1,269 1,627 1,285 671 416 327 287 321

11,024 10,597 7,697 4,403 2,749 1,790 1,839 2,164

26,311 28,630 21,062 11,714 7,503 4,594 4,344 4,601

FINANCIAL ANALYSIS

Radius Population:

2017 Population by Race:

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

2017 Households by Household Inc:

MARKET OVERVIEW

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

PROPERTY DESCRIPTION

Households:

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

18

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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