PHILIP LEVY 972.755.5225 SENIOR MANAGING DIRECTOR [email protected]

OFFERING MEMORANDUM TABLE OF CONTENTS

Texarkana Harley-Davidson 802 Walton Drive, Texarkana, TX 75501

Confidentiality & Disclaimer Contents

The information contained in the following Marketing Brochure is proprietary and strictly PROPERTY INFORMATION 3 confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap Executive Summary 4 and should not be made available to any other person or entity without the written consent of 5 Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified Property Description information to prospective purchasers, and to establish only a preliminary level of interest in the Complete Highlights 6 subject property. The information contained herein is not a substitute for a thorough due LOCATION INFORMATION 7 diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the Regional Map 8 future projected financial performance of the property, the size and square footage of the Location Maps 9 property and improvements, the presence or absence of contaminating substances, PCB's or 10 asbestos, the compliance with State and Federal regulations, the physical condition of the Aerial Maps improvements thereon, or the financial condition or business prospects of any tenant, or any Aerial Maps 11 tenant’s plans or intentions to continue its occupancy of the subject property. The information Aerial Maps 12 contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained FINANCIAL ANALYSIS 13 herein, nor has Marcus & Millichap conducted any investigation regarding these matters and Financial Summary 14 makes no warranty or representation whatsoever regarding the accuracy or completeness of the Income & Expenses 15 information provided. All potential buyers must take appropriate measures to verify all of the 16 information set forth herein. Tenant Profiles DEMOGRAPHICS 17 Non-Endorsement Notice Demographics Map & Report 18 Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or IABS 19 lessee identified in this marketing package. The presence of any corporation’s logo or name is not Back Page 20 intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS

2 Section 1 PROPERTY INFORMATION PROPERTY INFORMATION | EXECUTIVE SUMMARY

Texarkana Harley-Davidson 802 Walton Drive, Texarkana, TX 75501

OFFERING SUMMARY PROPERTY OVERVIEW

Sale Price: $5,920,000 Marcus & Millichap is pleased to offer the opportunity to acquire a 34,817-square foot Harley-Davidson dealership located in Texarkana, Texas. This is a new 10-year, absolute net lease to be executed upon closing and will have 10 percent rent escalations scheduled every five years. Cap Rate: 7.5% DEMOGRAPHICS

NOI: $444,000 1 MILE 3 MILES 5 MILES

Total Households 1,096 12,040 26,010 Lot Size: 3.27 Acres Total Population 2,836 30,772 67,810

Year Built: 2007 Average HH Income $51,390 $55,843 $53,941

Building Size: 34,817

Price / SF: $170.03

4 PROPERTY INFORMATION | PROPERTY DESCRIPTION

Texarkana Harley-Davidson 802 Walton Drive, Texarkana, TX 75501

PROPERTY DESCRIPTION The subject property is a 34,817-square foot Harley-Davidson dealership located in Texarkana, Texas. This is a new 10-year, absolute net lease to be executed upon closing and will have 10 percent rent escalations scheduled every five y ears. T he l ease w ill h ave a personal guarantee that will burn off after lease year seven. Tenant will have two, five-year options for renewal. Constructed in 2007, the building is situated on 3.27 acres.

LOCATION DESCRIPTION The subject property is located in a dense retail trade area at the intersection of and Interstate 369 with visibility from both freeways. Traffic c ounts o n I -30 are approximately 43,000 vehicles per day and 26,800 vehicles per day on I-369. Numerous national and regional tenants are in the surrounding area, including Lowe’s Home Improvement, Walmart Supercenter, Academy Sports and Outdoors, Ashley HomeStore, Cato, Verizon Wireless, GameStop, Subway, Country Inn & Suites, Gander Mountain, The Home Depot, Best Buy, Cinemark, Old Navy, Lane Bryant, Bed Bath & Beyond, Shoe Carnival, TJ Maxx, On the Border, Buffalo Wild Wings, Ruby Tuesday, LifeWay Christian Store, Chico’s, Kohl’s, Target, Office Depot, PetSmart, Sam’s Club and others. Additionally, Central Mall is approximately one mile east of the property and is anchored by JCPenney, Dillard’s, Sears, and Chuck E. Cheese’s.

Texarkana is a city in Bowie County, located in the Ark-La-Tex region. It is a twin city with neighboring Texarkana, Arkansas. Texarkana is a regional center for employment, health care, and education. The retail and services trade area encompasses a 17-county area in parts of three states with a workforce drawn from a 60-mile radius.

5 PROPERTY INFORMATION | COMPLETE HIGHLIGHTS

Texarkana Harley-Davidson 802 Walton Drive, Texarkana, TX 75501

BUILDING INFORMATION Gross Leasable Area (SF( 34,817 Occupancy % 100.0% Tenancy Single Year Built 2007 Free Standing Yes

PROPERTY HIGHLIGHTS • Absolute Net Lease | No Landlord Responsibilities

• New 10-Year Lease to be Executed at Closing with Two, Five-Year Options for Renewal

• 10% Rent Escalations Scheduled Every Five Years

• Personal Guarantee from the Tenant | Burns off after Lease Year Seven

• Lease can be Transferred to any New Franchisee that is Approved by Harley-Davidson

• Freeway Location on Interstate 30 at the Intersection with Interstate 369

• Traffic Counts are Approximately 43,000-VPD on I-30 and 26,800-VPD on I-369

• Dense Retail Trade Area | Neighbored by Lowe's, Walmart, Academy Sports and Outdoors, The Home Depot, Gander Mountain, Target, Kohl's, Best Buy and More

• Central Mall is Approximately One Mile East | Anchored by JCPenney, Dillard's, Sears and Chuck E. Cheese's

• The Texarkana Trade Area Encompasses 17 Counties in Parts of Three States

6 Section 2 LOCATION INFORMATION LOCATION INFORMATION | REGIONAL MAP

Texarkana Harley-Davidson 802 Walton Drive, Texarkana, TX 75501

Texarkana Harley-Davidson

8 LOCATION INFORMATION | LOCATION MAPS

Texarkana Harley-Davidson 802 Walton Drive, Texarkana, TX 75501

9 LOCATION INFORMATION | AERIAL MAPS

Texarkana Harley-Davidson 802 Walton Drive, Texarkana, TX 75501

10 LOCATION INFORMATION | AERIAL MAPS

Texarkana Harley-Davidson 802 Walton Drive, Texarkana, TX 75501

11 LOCATION INFORMATION | AERIAL MAPS

Texarkana Harley-Davidson 802 Walton Drive, Texarkana, TX 75501

12 Section 3 FINANCIAL ANALYSIS FINANCIAL ANALYSIS | FINANCIAL SUMMARY

Texarkana Harley-Davidson 802 Walton Drive, Texarkana, TX 75501

INVESTMENT OVERVIEW

Price $5,920,000 Price per SF $170.03 Cash-on-Cash Return (yr 1) 7.5 % Total Return (yr 1) $444,000

OPERATING DATA

Gross Income $444,000 Operating Expenses - Net Operating Income $444,000

FINANCING DATA

Down Payment $5,920,000 Loan Type All Cash

14 FINANCIAL ANALYSIS | INCOME & EXPENSES

Texarkana Harley-Davidson 802 Walton Drive, Texarkana, TX 75501

INCOME SUMMARY PER SF

Lease Years 1-5 $444,000 $12.75 Lease Years 6-10 $488,400 $14.03 Option 1: Lease Years 11-15 $537,240 $15.43 Option 2: Lease Years 16-20 $590,964 $16.97

Net Operating Income $444,000 $12.75

15 FINANCIAL ANALYSIS | TENANT PROFILES

Texarkana Harley-Davidson 802 Walton Drive, Texarkana, TX 75501

OVERVIEW TENANT SUMMARY Tenant: Franchisee Harley-Davidson is an American motorcycle manufacturer, founded in 1903 in Milwaukee, Lease Guarantor: Personal Guarantee Wisconsin. As one of two major American motorcycle manufacturers to survive the Great Lease Type: Absolute Net Depression, the company has become the world's fifth largest motorcycle manufacturer and an iconic brand widely known for its loyal following. Noted for a style of customization that Lease Term: 10 Years gave rise to the chopper motorcycle style, Harley-Davidson traditionally marketed Lease Commencement Date: At Closing heavyweight, air-cooled cruiser motorcycles with engine displacements greater than 700 cc. Rent Increases: 10% Every 5 Years

Options For Renewal: (2) 5-Year Options The company offers an expanding range of leading-edge, distinctive motorcycles and brings Options To Purchase/First Right Of Refusal: None the brand to life through Harley-Davidson riding experiences and exceptional motorcycle Website: www.texarkanaharley.com parts, accessories, riding gear and apparel. Harley-Davidson Financial Services provides financing, insurance and other programs to help get Harley-Davidson riders on the road. HIGHLIGHTS

• Lease can be Transferred to any New Franchisee that is Approved by Harley-Davidson • Personal Guarantee Expires at the End of the Seventh Lease Year

16 Section 4 DEMOGRAPHICS DEMOGRAPHICS | DEMOGRAPHICS MAP & REPORT

Texarkana Harley-Davidson 802 Walton Drive, Texarkana, TX 75501

POPULATION 1 MILE 3 MILES 5 MILES Total population 2,836 30,772 67,810 Median age 32.5 34.6 35.3 Median age (Male) 24.1 30.0 32.3 Median age (Female) 39.3 38.3 38.6

HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES Total households 1,096 12,040 26,010 # of persons per HH 2.6 2.6 2.6 Average HH income $51,390 $55,843 $53,941 Average house value $96,848 $128,348 $126,081

RACE 1 MILE 2 MILES 3 MILES Total Population - White 1,695 18,358 41,608 % White 59.8% 59.7% 61.4% Total Population - Black 893 9,846 21,155 % Black 31.5% 32.0% 31.2% Total Population - Asian 33 237 433 % Asian 1.2% 0.8% 0.6% Total Population - Hawaiian 0 9 53 % Hawaiian 0.0% 0.0% 0.1% Total Population - American Indian 15 224 419 % American Indian 0.5% 0.7% 0.6% Total Population - Other 100 1,342 1,994 % Other 3.5% 4.4% 2.9%

* Demographic data derived from 2010 US Census

18 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. 11-2-2015

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 o er to or counter-offer from the client; and • Treat all parties to a real estate transaction honestly and fairly. ff 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 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 (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: . that the owner will accept a price less than the written asking price; . that the buyer/tenant will pay a price greater than the price submitted in a written offer; and . 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.

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

Designated Broker of Firm License No. Email Phone

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

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 PHILIP LEVY Senior Managing Director Office

972.755.5225 Office 817.380.1153 Fax [email protected] LICENSE: TX 0522087

5001 Spring Valley Road Dallas, TX 75244