Pilot Travel Center Absolute Nnn Ground Lease | Highway Frontage | Established Location with High Volumes

NOR PILOT TRAVEL CENTER ABSOLUTE NNN GROUND LEASE | HIGHWAY FRONTAGE | ESTABLISHED LOCATION WITH HIGH VOLUMES

NEW BRAUNFELS, TX Contact the team

RICK SANNER [email protected] PH: 415.274.2709 CA DRE# 01792433

IN CONJUNCTION WITH TX LICENSED BROKER: Peter Ellis 210.325.7578 [email protected]

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. Buyer must verify the information and bears all risk for any inaccuracies. 2 Investment Summary

PILOT FLYING J 4142 LOOP 337, NEW BRAUNFELS, TX 78132

$4,675,325 3.85% PRICE CAP

NOI: $180,000

LEASE TYPE: ABSOLUTE NET GROUND LEASE LEASE TERM: 20 YEARS LEASABLE AREA: 14.67 ACRES BUILDING SIZE: 10,453 SF PUBLIC PARKING: 120 SPACES PRIME PARKING: 18 SPACES YEAR BUILT: 2007

DOMINATE LOCATION WITH HIGH SALES VOLUMES 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. Buyer must verify the information and bears all risk for any inaccuracies. 3 Investment Highlights

THE OFFERING The subject property is strategically located just off of Highway In addition to the location and beneficial lease terms, with over 35, fronting Loop 337, in New Braunfels, TX. This location benefits 750 locations and $20 billion in annual revenue, Pilot Flying J from high traffic counts and excellent highway visibility. Located is North America’s largest operator of travel centers. In addition between San Antonio and Austin, New Braunfels is the second to the strength of Pilot, in October of 2017 it was announced fastest growing city in the U.S. that Warren Buffett-controlled Berkshire Hathaway made a significant investment in the company, acquiring 38.6%. By The subject property offers a buyer the unique opportunity to 2023 Berkshire Hathaway will be the majority stakeholder with acquire a 14.67 acre parcel ground leased to Pilot Flying J well an additional purchase of 41.4%, bringing their total to 80%, below replacement cost (contact broker for details). In addition and the current ownership retaining the remaining 20%. to 9 diesel truck lanes and 8 gasoline pumps, included in the offering is a 10,453 square foot convenience store featuring sub- HIGHLIGHTS tenants McDonald’s, Subway and Cinnabon. The addition of • Large Parcel – 14.67 Acres these three nationally branded restaurants has two important • 20-year absolute NNN ground lease benefits: bringing more customer traffic and visibility tothe • 10% rental increases every 5 years site, while simultaneously lowering Pilot’s occupancy costs. • Corporate Guarantee from the largest operator of travel Additional onsite amenities can be found here. centers in North America • Over 750 Locations and $20 Billion in revenue • Second fastest growing city in the U.S. 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. Buyer must verify the information and bears all risk for any inaccuracies. 4 Income & Expense

PRICE $4,675,325 Capitalization Rate: 3.85% Total Rentable Area (acre)1 14.67 STABILIZED INCOME PER SQUARE FOOT Scheduled Rent $12,270 $180,000 Effective Gross Income $12,270 $180,000 LESS PER SQUARE FOOT Taxes NNN $0.00 Insurance NNN $0.00 Total Operating Expenses NNN $0.00 EQUALS NET OPERATING $180,000

1 - The convenience store within the premises is approximately 10,453 square feet. A portion of the convenience store is subleased to McDonalds, Subway and Cinnabon. There are 9 diesel truck lanes and 8 gas pumps. For more information on additional amenities please click here.

TENANT INFO LEASE TERMS RENT SUMMARY

CURRENT MONTHLY YEARLY MONTHLY YEARLY TENANT NAME SQ. FT. TERM RENT RENT RENT RENT/FT RENT/FT

Pilot Travel Centers 639,025 05/07/20 12/31/24 $180,000 $15,000 $180,000 $0.02 $0.28

01/01/25 12/31/29 $16,500 $198,000 $0.03 $0.31

01/01/30 12/31/34 $18,480 $221,760 $0.03 $0.35

01/01/35 12/31/39 $20,697 $248,364 $0.03 $0.39

Option 1 01/01/40 12/31/44 $23,181 $278,172 $0.04 $0.44

Option 2 01/01/45 12/31/49 $25,962 $311,544 $0.04 $0.49

Option 3 01/01/50 12/31/54 $29,078 $348,936 $0.05 $0.55

Option 4 01/01/55 12/31/59 $32,567 $390,804 $0.05 $0.61

TOTALS: 639,025 $180,000 $15,000 $180,000 $0.02 $0.28

Pilot Flying J is the largest operator of travel centers in North America with more than 750 locations in 44 states and six Canadian provinces. Headquartered in Knoxville, Tennessee, the company was formed in 2010 when Pilot Travel Centers merged with Flying J to create a new company. More than 28,000 people are employed by Pilot Flying J.

Located along interstates, the travel centers cater to both professional drivers and motorists selling gas, diesel, convenience store goods and fast food. Pilot Flying J serves more than 1.6 million guests a day and sells more than 7 billion fuel gallons annually.

Pilot Flying J Travel Centers offer a wide variety of services to professionals drivers, including parking reservations, restrooms and showers, laundry, wifi, game rooms, western union, check cashing and pay phones among other services.

$20 Billion 2019 ANNUAL REVENUE

LOCATIONS IN 44 STATES, AND 6 750 CANADIAN PROVINCES

GUESTS SERVED 1.6 This information has been secured from sources we believe to be reliable but we make no representations or DAILY warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and 7 bears all risk for any inaccuracies. Million Retail Aerial

MORNINGSIDE ELEMENTARY SCHOOL

INTERSTATE 35 FRONTAGE ROAD 35

INTERSTATE 35 FRONTAGE ROAD 101,621 VPD 337

27,026 VPD

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed 8 or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. Retail Aerial

MEMORIAL ELEMENTARY SCHOOL COUNTY LINE W SAN ANTONIO STREET ELEMENTARY WALNUT SPRINGS ELEMENTARY SCHOOL 101,621 27,026 VPD VPD 35 337

ALTGELT LANE

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed 9 or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. ELEMENTARY Aerial SCHOOL 35 AUSTIN 109,481 VPD

18,852 ELEMENTARY SCHOOL VPD

MIDDLE SCHOOL 337

HIGH SANTA SCHOOL ROSA COMAL ACADEMY 46 HOSPITAL COUNTY FAIR NEW GOLF RESOLUTE BRAUNFELS COURSE HEALTH REGIONAL HOSPITAL AIRPORT 21,246 AQUATICS ELEMENTARY ELEMENTARY CENTER SCHOOL VPD SCHOOL

COMAL HIGH MIDDLE COUNTY LIBRARY SCHOOL SCHOOL CITY OF HIGH NEW SCHOOL BRAUNFELS CITY OF NEW CONVENTION BRAUNFELS CENTER ELEMENTARY MIDDLE SCHOOL SCHOOL SCHOOL ELEMENTARY 337 SCHOOL 17,630 SPORTS VPD COMPLEX

COMAL 35 COUNTY

46 33,607 ELEMENTARY VPD ELEMENTARY SCHOOL ELEMENTARY SCHOOL SCHOOL

ELEMENTARY SCHOOL SAN 35 ANTONIO HILTOP RANCH ELEMENTARY AIRPORT SCHOOL ELEMENTARY 106,484 SCHOOL VPD

POPULATION BLANCO 1-MILE 3-MILES 5-MILES 2010 3,792 31,608 54,029

2019 4,722 42,680 74,311

2024 4,722 47,788 84,365 SAN MARCOS

2019 HH INCOME 1-MILE 3-MILES 5-MILES Average $56,628 $87,203 $87,253

Median $43,167 $63,807 $64,380 NEW BRAUNFELS SEGUIN SAN ANTONIO-NEW BRAUNELS MSA TOP EMPLOYERS EMPLOYER # OF EMPLOYEES Lackland Air Force Base 37,000 SAN ANTONIO (30 MILES) Fort Sam Houston-U.S. Army 32,000

H-E-B 20,000

USAA 18,305 THE AVERAGE HOUSEHOLD Randolph Air Force Base 11,000 INCOME WITHIN A 3-MILE RADIUS IS OVER $87K 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. Buyer must verify the information and 11 bears all risk for any inaccuracies. Location Overview NEW BRAUNFELS, TEXAS

THE COMAL RIVER

NEW BRAUNFELS, the second fastest growing city in the U.S., is SAN ANTONIO–NEW BRAUNFELS (or Greater San Antonio) located in Texas Hill Country, conveniently set astride the Interstate-35 is an eight-county metropolitan area in central Texas. corridor between San Antonio and Austin. New Braunfels has two rivers–the Comal and Guadalupe, which meet in the center of the city. San Antonio is seventh most populous city in the U.S., and the second most populous city in Texas. Home to numerous Founded in 1845 by German settlers, New Braunfels is overflowing historical and cultural sites, including The Alamo; the world with old world heritage and small town Texas charm. From boundless famous River Walk, and Sea World, among many other adventures on two beautiful rivers to wholesome entertainment at attractions. The city also has one of the largest concentrations Schlitterbahn Waterpark and Natural Bridge Wildlife Ranch & Caverns, of military bases in the U.S. The defense industry in San the activities and sights are endless. The city is also home to Texas’ Antonio employs over 190,000 and provides a $27.7 billion oldest bakery, oldest dance hall, and Wurstfest an annual 10-day regional economic impact. salute to sausage. GREATER SAN ANTONIO 2.47 MILLION POPULATION This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or (ESTIMATED) implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 12 Contact us.

RICK SANNER [email protected] PH: 415.274.2709 CA DRE# 01792433

IN CONJUNCTION WITH TX LICENSED BROKER: Peter Ellis 210.325.7578 [email protected]

CAPITAL PACIFIC COLLABORATES. CLICK HERE TO MEET OUR 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. Buyer must verify the information and bears all risk for any SAN FRANCISCO TEAM. inaccuracies. 11-2-2015 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 buyerof any material information about the property or transaction known by the agent, including information disclosed to the agent by the 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 (ownerd an 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: ᴑ that the owner will accept a price less than the written asking price; ᴑ that the buyer/tenant will pay a price greater than the price submitted in a written offer; and ᴑ any confidential information or any other information that a party specifically instructs the broker in writing notto 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.

Licensed Broker /Broker Firm Name or License No. Email Phone Primary Assumed Business Name

Designated Broker of Firm License No. Email Phone

Licensed Supervisor of Sales Agent/ License No. Email Phone Associate

Sales Agent/Associate’s Name License No. Email Phone

Buyer/Tenant/Seller/Landlord Initials Date

Regulated by the Texas Real Estate Commission Information available at www.trec.texas.gov IABS 1-0