Hooters - San Angelo, TX

SAN ANGELO, TX

* Representative Photo

PRI P R I CING & F INAN CI AL AN ALYSI S

H O OT E R S - SAN ANG E LO, T X

Hooters

4384 Sherwood Way San Angelo, TX 76901

OFFERING SUMMARY Price Cap Rate Net Operating Income Year Built Gross Leasable Area Lot Size

ANNUALIZED OPERATING DATA $3,480,000

Commencement

Annual

Increase

1-3

2/1/2019

$200,000

-

$200,000

4-10

2/1/2022

$220,000

10.00%

2000

11-15

2/1/2029

$242,000

10.00%

16-20

2/1/2034

$266,200

10.00%

Option 1: 21-25

2/1/2039

$292,820

10.00%

Option 2: 26-30

2/1/2044

$322,102

10.00%

Option 3: 31-35

2/1/2049

$354,312

10.00%

5.75%

7,999 SF 1.78 Acres

LEASE SUMMARY Lease Term

20 Years

Lease Commencement

2/1/2019

Lease Expiration

1/31/2039

Remaining Term

20+ Years

Lease Type Roof & Structure Increases Options Options to Purchase

Year(s)

NET OPERATING INCOME

$200,000

NNN Tenant 10% Every 5 Years 3 x 5 Year ROFR

Note: The property is currently under construction (tenant remodel and buildout). The tenant is scheduled to open for business on February 2019 but this date is subject to change.

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

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PRI CING & F INAN CI AL AN ALYSI S

H O OT E R S - SAN ANG E LO, T X

PORTFOLIO SUMMARY This Property may be purchased individually or as part of a portfolio

PROPERTY

ADDRESS

CITY

STATE

PRICE

NOI

CAP RATE

1

Stonebridge Pediatrics

5561 Virginia Pkwy

McKinney

TX

$3,800,000

$256,477

6.75%

2

McKinney Two-Tenant Strip

1980 N Central Expy

McKinney

TX

$2,450,000

$165,459

6.75%

3

Cash America Pawn

5016 Lemmon Ave

Dallas

TX

$2,025,000

$106,260

5.25%

4

BlueWave Express Wash

1665 Eldridge Pkwy

Houston

TX

$5,050,000

$341,000

6.75%

5

Christian Brothers Automotive

7937 Westheimer Rd

Houston

TX

$3,080,000

$184,677

6.00%

6

Christian Brothers Automotive

10010 McMullen Rd

Brandon

FL

$2,980,000

$178,946

6.00%

7

Kirby’s Steakhouse

3305 E State Hwy 114

Southlake

TX

$4,080,000

$265,000

6.50%

8

BlueWave Express Wash

9801 Jones Rd

Houston

TX

$4,400,000

$297,000

6.75%

9

Target Strip on LBJ

5631 LBJ Fwy

Dallas

TX

$4,425,000

$399,000 (1)

10

Bexar County Office Building

2711 SE Loop 410

San Antonio

TX

$3,790,000 (2)

$283,092

8.00%

11

ABA North Texas

6200 Virginia Pkwy

McKinney

TX

$1,830,000

$127,818

7.00%

12

Multi-Tenant Office Building

1405-1415 Halsey Way

Carrollton

TX

$3,910,000

$312,574

8.00%

13

Little Sunshine’s Playhouse

600 Zena Rucker Rd

Southlake

TX

$3,960,000

$267,000

6.75%

14

Little Sunshine’s Playhouse

1501 Lohmans Crossing

15

Hooters

4384 Sherwood Way

16

Little Sunshine’s Playhouse

8030 Branch Crossing

17

Car Spa

18

9.00% (1)

Lakeway

TX

$4,630,000

$312,300

6.75%

San Angelo

TX

$3,480,000

$200,000

5.75%

The Woodlands

TX

$5,325,000

$359,349

6.75%

5028 W Park Blvd

Plano

TX

$6,740,000

$455,000

6.75%

Service King

4205 W Plano Pkwy

Plano

TX

$6,785,000

$424,000

6.25%

19

Fireside Pies

1285 S Main St

Grapevine

TX

$2,640,000

$178,196

6.75%

20

Winewood Grill

1265 S Main St

Grapevine

TX

$4,225,000

$285,000

6.75%

$79,605,000

$5,398,148

6.76%

TOTAL (1) NOI and Cap Rate is based on Pro Forma (2) Sale price includes $250,000 of amortized T.I.

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

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TE NA NT OVERV I EW

Hooters, Inc. is the trade name of two privately held American restaurant chains: Hooters of America, Incorporated, based in Atlanta, Georgia, and Hooters, Incorporated, based in Clearwater, Florida. The waiting staff at Hooters restaurants are primarily attractive young women, usually referred to simply as “Hooter Girls”, whose revealing outfits and sex appeal are played up and are a primary component of the company’s image. Almost all Hooters restaurants hold alcoholic beverage licenses to sell beer and wine, and where local permits allow, a full liquor bar.

Hooters T-shirts, sweatshirts, and various souvenirs and curios are also sold.

H O OT E R S - SAN ANG E LO, T X

COMPANY SUMMARY Company

Hooters

Ownership

Private

Number of Locations

430+

Years in Business

35

Headquarters

Atlanta, GA

Website

www.hooters.com

* Representative Photo

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

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I N VE S TMENT HI GHLI GHT S

• Brand New 20-Year Net Lease with a Strong Corporate Guarantee

H O OT E R S - SAN ANG E LO, T X

SNAPSHOT

• Absolute NNN – Zero Landlord Responsibilities • L ocated on Sherwood Way in San Angelo – Visible to 17,000 Vehicles per Day • Class A Construction in Prime Location • T wo Miles from Angelo State University with Enrollment Over 10,000 Students

Estimated Vehicles Per Day

Average Household Income

17,000

$70,689

Population Growth 2010-2018

Population: 5 Mile Radius

10.47%

90,539

• In 2013, San Angelo Ranked 4th in the Nation on Forbes’ “Best Small Cities for Jobs” Rankings • F ive Hotels Within Walking Distance of The Property Drawing Visitors to the Area • P opulation in a One-Mile Radius has Grown 10% In the Past Few Years with another 4% Projected by 2023 • S urrounding National Retailers Include Tractor Supply, Target, Chick-fil-A, Home Depot, AT&T, Anytime Fitness, Buffalo Wild Wings, PetSmart, McAllister’s Deli, O’Reilly Auto Parts, Michaels, Best Buy, Dillard’s, Hobby Lobby, Freddy’s Frozen Custard & Steakburgers, Academy, Office Depot

* Representative Photo

PROPERTY DESCRIPTION

5

A E R I AL MA P

H O OT E R S - SAN ANG E LO, T X

* Representative Photo

Sh

e

oo w r

d

ay W

17,000 VPD

PROPERTY DESCRIPTION

6

LO C AL MA P

H O OT E R S - SAN ANG E LO, T X

PROPERTY DESCRIPTION

7

M A R KET OVERVI EW

H O OT E R S - SAN ANG E LO, T X

San Angelo, TX

OVERVIEW San Angelo is the county seat of Tom Green County in the Concho Valley of Texas. It has a population of about 100,000 people and is home to Angelo State University, historic Fort Concho, and Goodfellow Air Force Base. Common nicknames of the city include Angelo, Land of Sand and Jello, the Concho City, the Pearl of the Conchos, and the Oasis of West Texas.

San Angelo has consistently been ranked by many publications and rankings as one of the best small cities for business and employment. In 2013, it ranked fourth in the nation in Forbes magazine’s “Best Small Cities For Jobs” rankings. In 2010, Kiplinger’s Personal Finance named San Angelo as one of the “Best Cities of the Next Decade”. In 2009, CNN Money ranked San Angelo as one of the best cities to launch a small business.

San Angelo has a diverse economy for a city of its size. Although most oil fields lie to the west, many oil-field service companies based in the city employ a large number of local residents. The agricultural

industry in San Angelo remains strong. Producer’s Livestock Auction is the nation’s largest for sheep and lambs, and is among the top five in the nation for cattle auctions. Though most agricultural work is done outside the city, thousands of employees work in the cattle and lamb meat-processing industries, and many more work in agriculture supporting roles inside the city. The telecommunication industry is a strong employer in San Angelo. Sitel has a call center in San Angelo. In addition, Frontier Communications, Performant Recovery Inc. (formerly DCS), a debt recovery corporation, and Blue Cross all employ over 1,000 each individuals locally.

San Angelo is home to Angelo State University.

Founded in 1928, it enrolls about 10,000 students who come from almost every county in Texas, 40 states, and 24 countries. One of the nation’s premier regional universities, it was featured in the Princeton Review Best 373. The only other two listed from the state were Texas A&M University and the University of Texas at Austin.

MARKET OVERVIEW

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D E M OG RA PHIC STAT I ST I CS

H O OT E R S - SAN ANG E LO, T X

1 Mile

3 Mile

5 Mile

7,256 6,935 6,278 4.63% 10.47% 2,056

54,308 52,084 47,915 4.27% 8.70% 16,448

90,539 86,744 79,315 4.37% 9.37% 34,557

6,235 356 45 152 2 144 107

47,153 2,427 466 883 75 1,080 502

78,114 4,554 887 1,234 125 1,830 2,263

3,170 3,033 2,783 4.52% 8.98% 1,768 1,265 $70,689 $57,510

22,398 21,438 19,719 4.48% 8.72% 13,036 8,402 $69,267 $52,055

35,718 34,154 31,226 4.58% 9.38% 20,793 13,361 $67,353 $47,808

627 715 567 476 297 127 125 97

4,524 5,815 4,333 2,375 1,796 878 951 766

8,305 9,451 6,306 3,404 2,525 1,340 1,507 1,317

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+

Demographic data © CoStar 2018

MARKET OVERVIEW

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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.

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

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.

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

exclusively listed 469.844.8880 | STRIVERE.COM