OFFERING MEMORANDUM

KILLEEN TEXAS

Located on Interstate 14 / U.S. Highway 190, Central Texas’s main central highway

REPRESENTATIVE PHOTO CONFIDENTIALITY AND DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified 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. 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 future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information 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 herein, nor has Marcus & Millichap 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. NON-ENDORSEMENT NOTICE

Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of w, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not 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. 56 183 81 75 64 177 Miami 64 287 Beaver R. Salt Fork 65 64 60 285 64 Bartlesville Lake of Ponca City Table Rock L. the Cherokees Kaw L. 60 Oologah L. Toll 160 281 59 270 64 Cimarron R. 71 Missouri 283 177 Woodward Rio Grande 54 412 60 169 Pea Ridge NMP 385 64 Toll Abiquiu Res. 56 L. Hudson Rogers 183 Enid 64 Canadian R. Wolf Creek Beaver L. Claremore Ute Creek Corrizo Creek 87 77 Toll Toll 84 412 Keystone L. Springdale 412 60 Stillwater Buffalo NR 83 Canton L. 412 Illinois River 287 Tulsa 69 CANADIAN RIVER 270 Sapulpa Fayetteville 81 Fort Gibson L. Los Alamos 183 Toll Dumas Guthrie Cimarron R. Toll 54 62 Mora R. Washita River Bandelier NM 25 35 44 Lake Meredith NRA Oklahoma Tenkiller Ferry L. Arkansas Borger Muskogee L. Meredith Edmond Las Vegas Okmulgee Canadian R. Santa Fe Gallinas R. Alibates Flint Quarries NM El Reno 75 40 Bethany 177 87 62 Van Buren 64 Conchas L. Pampa L. Dardanelle 40 Oklahoma City Del City 40 Ute Res. 60 Shawnee Eufaula Res. Fort Smith 285 84 Fort Cobb Res. N. Fork Red R. NormanL. Thunderbird Russellville Petroglyph NM 40 44 270 Toll 283 Albuquerque Amarillo 281 62 71 287 40 L. Altus Chickasha Candadian R South Valley Canyon Nimrod L. 385 62 Toll McAlester 270 277 Pecos R. Salt Fork Hereford 183 Ada 69 59 84 81 85 77 75 Toll 270 62 Altus Fort Sill Kiamichi R. L. Sumner Lawton Hot Springs NP 60 Chickasaw NRA 60 60 Duncan Atoka L. Hot Springs 271 Clovis 287 Broken Bow L. 54 283 177 70 Toll 25 285 44 70 Plainview 70 35 Pine Creek L. Arkadelphia Vernon Ardmore Burkburnett 70 70 62 70 67 Durant 30 27 Wichita Falls RED RIVER Little River 380 New Mexico 69 62 71 Red R. 83 L. Kemp Millwood L. 377 70 84 L. Texoma 259 385 82 287 Paris 82

Pecos River L. Arrowhead Hope Levelland Gainesville Sherman 271 Lubbock Brazos River Roswell 380 Sulphur R. 62 281 81 TABLE OF CONTENTS87 183 Texarkana 70 82 277 Denton McKinney Magnolia 82 380 380 380 Greenville 30 Brownfield 259 79 L. Stamford Sulphur Springs 285A Lavon L. 59 Lewisville Plano L. Tawakoni Eagle Mountain L. Clear Fork 69 Brazos R. Richardson Garland InvestmentArtesia Summary...... 5 Alamogordo 82 Irving 180 Dallas 71 White Sands NM Lamesa 180 Hubbard Creek L. 180 285 80 Investment Highlights...... Hobbs 6 Snyder 84 Fort Worth Grand Prairie Minden 70 283 Cross L. 80 L. J B Thomas Lancaster 25 62 20 20 Longview Sweetwater Burleson Abilene Shreveport Carlsbad Cleburne Aerial Map...... Andrews 8 20 377 287 Ennis Kilgore Las Cruces Cedar175 Creek Res. Tyler 79 54 277 Stephenville 35W 45 Athens Big Spring 67 77 Henderson Carlsbad Caverns NP 81 69 10 385 Tenant Summary...... 10 TEXAS Corsicana 259 84 87 84 79 Red Bluff Reservoir North Fork 71 Guadalupe Midland 67 L. Whitney 287 Jacksonville 62 E V Spence Res. Mountains NP 183 Navarro Mills L. 84 Fort Bliss Odessa Angelina R. Louisiana49 El Paso Pecos River Site Plan...... 12 Trinity R. 59 35 Natchitoches Palestine 80 84 Brownwood Nacogdoches 67Concho R. 283 Waco 69 Area Map...... 20 13 Colorado R. San Angelo 83 84 Pecos 377 77 171 Lufkin Twin Buttes Res. 87 79 281 Brozas R. 96 RIO GRANDE Location Overview...... 15 190 285 287 10 Brady Creek Neches R. Killeen Temple Copperas Cove 190 Fort Polk South Belton 69 Location Highlights...... 17 183 190 87 De Ridder L. Buchanan 190 190

Demographics...... 18 L. Livingston 290 10 377 Huntsville Villa Ahumada 67 Llano R. 79 Bryan R. Neches

Pecos R. 96 Sobine R. 90 285 190 77 45 Big Thicket Round Rock L. Conroe 59 385 Trinity River N PRES 277

Pedernales290 River Conroe Lake Charles Lyndon B. Johnson NHP 290 Brenham 10 Austin 87 10 90 35 Beaumont OrangeCalcasieu L. 281 Kerrville Champions L. Houston 90 Groves Aldine San Marcos Nederland Ricardo Flores Magon 67 377 385 Port Arthur

RIO GRANDE Amistad NRA Frio River W. Nueces R. Baytown New Braunfels 10 90 Houston

Rio Conchos Rosenberg Pasadena 77 Seguin 90A Amistad Res. 83 Friendswood Del Rio San Antonio 59 45 Texas City 87 183 Lackland AFB Big Bend NP Potrero Del Llano 90 81 Medina River Galveston Uvalde El Campo 277 Benavides WEST BAY 57 Freeport

RIO GRANDE Eagle Pass Victoria 59 87 277 181 Port Lavaca Chihuahua San Antonio R. MATAGORDA Zaragoza 183 BAY Ciudad Cuauhtemoc 37 77 Morelos Nava Beeville Guerrero SAN ANTONIO Meoqui BAY

Villa Union 35 L. Corpus Christi Delicias

Nueva Rosita Aguhta Nueces R. Naica 83 Muzquiz Portland Sabinas Ciudad Camargo Mexico Alice 59 Corpus Christi

Kingsville

Progreso Laredo

Jimenez Anahuac San Buenaventura Padre Island NS 281 Nadadores E R D A M A N U G A L

Villa Frontera Candela GULF Castanos 77 Falcon Res.

Bustamante OF

Villaldama 83 Sabinas Hidalgo El Alamo MEXICO

Mission McAllen Harlingen 83 Zaragoza San Benito Reynosa 281 Palo Alto Battlefield NHS El Carmen Cienega De Flores Rio Bravo Brownsville General Zuazua General Bravo San Pedro Matamoros Monterrey Guadalupe China Gomez Palacio Cadereyta Matamoros Ciudad Lerdo Parras San Luis Del Cordero Viesca General Cepeda Saltillo General Teran Montemorelos Santiago Papasquiaro San Rafael ACTUAL SITE PHOTO INVESTMENT SUMMARY

2401 E CENTRAL TEXAS EXPRESSWAY, KILLEEN, TX 76543

PRICE: $3,136,363 CAP: 5.50% RENT: $172,500

OVERVIEW ANNUALIZED OPERATING DATA Price $3,136,363 Lease Term Annual Rent Gross Leasable Area (GLA) 5,581 SF 5/01/2020 $172,500** Lot Size (approx.) 1.52 Acres 4/30/2025 $189,750 Net Operating Income $172,500 Option 1 $208,725 CAP Rate 5.50% Option 2 $229,597 Year Built / Renovated 1999

LEASE ABSTRACT * Lease was originally 15-years (2004). Tenant extended lease for 10 years (leaving options intact) to commence May 2020. In exchange, rent was reduced to $172,500. Lease Type NNN Priced on May 2020 rents. Lease Term 10 Years ** 10% rent bumps every 5-years.

Lease Start 5/1/2020

Lease Expiration Estimate 5/2020

Renewal Options 4X5

Rent bump 4/30/2025 - $189,750. Increases 10% rent bumps in options*

Landlord Obligation None At All

5 INVESTMENT HIGHLIGHTS

t Guaranteed by Inspire Brands which is a division of Roark Capital

t True NNN Lease with no landlord obligations

t 4 five-year options with rent bumps that hedge against inflation

t Located on Main Retail Corridor with Numerous Surrounding National Retailers

t Nearby national retailers: Walmart Supercenter, Outback Steakhouse, Chuck E. Cheese, The Home Depot, Olive Garden, and Applebee’s Grill + Bar

189,560 $63,030 TOTAL AVERAGE POPULATION HOUSEHOLD WITHIN 5-MILE INCOME WITHIN RADIUS 5-MILE RADIUS

83,000 VPD - US HWY 190 4,690 VPD - ILLINOIS AVE

6 INVESTMENT HIGHLIGHTS NNN

True NNN Lease with Property located This passive investment opportunity is a true NNN lease and offers rent bumps no landlord obligations on Interstate 14 / U.S. to hedge against inflation. There are 4 Highway 190, the main five-year options on this 10-year lease, highway in Central Texas and no landlord obligations.

The lease originally started as a 15 year lease in 2004, but the Tenant extended for another 10-years leaving the options intact. The rents were slightly reduced to accommodate the extended term.

The site is priced on future rents (May 2020). Current rent is $183,804. Seller to credit buyer the differential (if any) upon close of escrow.

The subject property is in Killeen, TX, which is the heart of the Grand Central Texas Region. Major highways that run through Killeen are Interstate 14/ U.S. Highway 190. The subject site is Strategic in its The Texas A&M University- located directly on this highway. Nearby proximity to Fort Hood Central Texas, the newest national retailers attract customers to the subject property. Various nearby retailers Military Base addition to The Texas A&M include: Outback Steakhouse, Chuck E. University System, is Cheese, The Home Depot, Olive Garden, located in Killeen and Applebee’s Grill + Bar. 7 SM Print & Ship Serivces

E CENTRAL TEXAS EXPY US HWY 190 - 83,000 VPD

®

BURGER

8 REPRESENTATIVE PHOTO 9 TENANT SUMMARY

BUFFALO WILD WINGS

Buffalo Wild Wings is a casual dining restaurant and bar that is best Blazin Wings, the franchisee, is one of the largest Buffalo Wild Wings known as a great place to gather with friends, watch sports and eat franchisees in the country, has a development agreement to build chicken wings. It has won many awards as the “Best Wings” and “Best 42 restaurants over the next 8-10 years. As of 2007, they currently Sports Bar” across the U.S. and continues to attract customers with its operated 15+ Buffalo Wild Wings with several more under construction. boldly flavored and delicious wings.

The first Buffalo Wild Wings restaurant opened in 1982 in Columbus, Ohio and has since grown to over 1,160 restaurants in almost every t Blazin’ Wings, the unit franchisee, is owned by U.S. State. It began franchising in 1991 and became publicly held Inspire Brands. in 2003. Today, there are Buffalo Wild Wings restaurants all over the t world in places such as Mexico, The Philippines, Saudi Arabia, and the Blazin’ Wings is the largest Wild Wings operator in United Arab Emirates. The company is headquartered in Minneapolis, the Country. Minnesota. They franchise and directly own their restaurants. For t Owned by Roark Capital Group the fiscal year 2014, the company reported revenues of more than $1.4 billion, as well as net earnings growth of more than 31 percent. t First store opened in 1982 in Columbus, OH

t Headquartered in Minneapolis, MN In 2017, the restaurant chain was purchased by Roark Capital Group for $2.4 billion, adding to the equity firm’s stable restaurants including t Roark Capital Group Arby’s, Cinnabon, Auntie Annie’s, Corner Bakery, and many more. The • Placed BWW under Inspired Brands Atlanta-based private equity firm has raised over $12 billion in equity capital since inception. After purchasing Buffalo Wild Wings, Roark Capital Group placed Arby’s, Buffalo Wild Wings, Rusty Tacos, and Sonic, all under a new name: Inspired Brands. 10 BUFFALO WILD WINGS

MINNEAPOLIS, MN HEADQUARTERS

PAUL BROWN 1982

CEO ESTABLISHED

ROARK CAPITAL 1,238 GROUP LOCATIONS OWNERSHIP (June 2017)

$1.99(BIL) $94.21(MIL) REVENUE NET INCOME (2016) (2016)

WWW.BUFFALOWILDWINGS.COM ACTUAL SITE PHOTO WEBSITE 11 SITE PLAN

E CENTRAL TEXAS EXPY

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13 REPRESENTATIVE PHOTO 14 LOCATION OVERVIEW

KILLEEN, TEXAS

Killeen is a city in central Texas, known for the Fort Hood military base and and Temple. The Killeen-Fort Hood Regional Airport is also located in its beautiful lakeshore campground. Killeen is the 21st most populous Killeen. It is a small military/ commercial joint-use airport which operated city in Texas. Major highways that run through Killeen are Interstate 14/ alongside Robert Gray Army Airfield. U.S. Highway 190, which create the heart of the Grand Central Texas Region. These highways connect Killeen to surrounding areas in Texas The Dana Peak Park is one of the most popular areas to visit in Killeen. and make the area easily accessible. Killeen is approximately 50 miles It is a campground and day-time park located on a peninsula on the southwest of Waco and about 60 miles north of the capital city of Austin. shoreline of Stillhouse Hollow Lake. The area offers water sports, hiking, biking, horseback riding, picnicking, hunting, fishing, and much more. The Fort Hood Military Base in Killeen, a 214,968-acre installation, is There is a 6,340-acre lake, located 15 miles upstream from the Lampas the only post in the United States capable of stationing and training and Leon Rivers, which flow into the Little River at Dana Peak Park, two Armored Divisions. The post is named after Confederate General serving as the perfect lake for a hot summer’s day. John Bell Hood who led the Texas Brigade against the U.S. Army during the American Civil War. Killeen has created an extremely supportive The Texas A&M University-Central Texas is the newest addition to The community by having many resources and networks available for Texas A&M University System, one of the largest systems of higher Army families. education in the nation. This public university has over 3,470 students and offers various undergraduate, graduate, and online degree programs. Transportation in Killeen is easy and accessible to everyone. The HOP, The University was established in 2009 and emphasizes access and operated by Hill Country Transit District, is a regional public transit affordability along with a great education. Whether you are in Killeen system which covers over 9,000 square miles, serving a nine-county visiting Dana Peak Park of looking to pursue your next business venture, area. The system consists of three divisions: the nine-county Rural the city’s easy accessibility and various attractions make it the perfect Division, the Killeen Urban Division consisting of Copperas Cove, Harker place to meet everyone’s needs. Heights, and Killeen; and the Temple Urban Division consisting of Belton

15 REPRESENTATIVE PHOTO 16 77

84 183 Waco

84 281 LOCATION HIGHLIGHTS

183 58.3 Miles from Waco77 Killeen

190 KILLEEN, TX

35 79 STRATEGICALLY LOCATED NEAR FORT HOOD MILITARY BASE

190

281 190

79

79

68.4 Miles from Area’s main highway, Located in city with one 281 183 77 87 290Downtown Austin Interstate 14 / U.S. Highway of the largest military 290 Austin 290 190, runs through installations in the world:

290 35 290 subject property Fort Hood 281

10 maps4news.com/©HERE MAJOR EMPLOYERS KILLEEN, TX

III Corp & Fort Hood Government 36,187 Military Defense Contractors & Others 7,502 Defense Contractor Killeen ISD Education 6,000 Civilian Personnel Office Government 5,493 Teleperformance Call Center 1,800 Central Texas College Education 1,488 Other notable tenants in Strong visibility City of Killeen Government 1,282 area draw business for multiple points AdventHealth Health Care 1,000 (i.e. Walmart Supercenter, of ingress/egress Z-Systems Defense Contractor 413 The Home Depot, ESP, Inc. Defense Contractor 420 Outback Steakhouse, Ford, Foot Locker, etc) 17 DEMOGRAPHICS / KILLEEN, TX 189,560 Total Population Within 5-Mile Radius

$63,030 $49,908 Average Household Income Median Household Income Within 5-Mile Radius Within 5-Mile Radius

68,938 73.58% From 2000 Total Households in 5-Mile Radius

18 POPULATION 1 MILE 3 MILES 5 MILES POPULATION PROFILE 1 MILES 3 MILES 5 MILES 2023 Projection 10,826 93,547 189,560 2018A Estimated Population by Age 9,952 86,791 171,029 2018A Estimate 9,952 86,791 171,029 Under 4 9.6% 9.8% 9.9% Growth 2018A - 2023 8.78% 7.78% 10.84% 5 to 14 Years 14.6% 15.3% 15.9% 2000 Census 7,830 65,543 108,791 15 to 17 Years 3.3% 3.8% 4.0% 2010 Census 9,554 79,639 156,018 18 to 19 Years 2.3% 2.4% 2.8% Growth 2000 - 2010 22.02% 21.51% 43.41% 20 to 24 Years 11.1% 9.5% 10.7% 25 to 29 Years 12.6% 10.9% 11.0% 30 to 34 Years 9.5% 8.9% 9.0% HOUSEHOLDS 1 MILES 3 MILES 5 MILES 35 to 39 Years 7.2% 7.3% 7.4% 40 to 49 Years 9.5% 11.0% 10.9% 2023 Projections 4,508 36,682 68,938 50 to 59 Years 9.3% 9.7% 8.9% 2018A Estimate 4,087 33,749 61,671 60 to 64 Years 3.4% 3.5% 3.2% Growth 2018A - 2023 10.29% 8.69% 11.78% 65 to 69 Years 2.8% 2.8% 2.4% 2000 Census 3,061 25,113 39,714 70 to 74 Years 1.8% 2.0% 1.7% 2010 Census 3,873 31,013 56,319 Age 75+ 3.0% 3.1% 2.4%

Growth 2000 - 2010 26.51% 23.49% 41.81% 2018A Median Age 28.5 29.2 28.0

Population 25+ by Education Level 5,880 51,400 97,027 HOUSEHOLDS BY INCOME 1 MILES 3 MILES 5 MILES Elementary (0-8) 2.31% 3.50% 2.52% $200,000 or More 0.86% 2.13% 1.86% Some High School (9-11) 4.89% 5.80% 5.13% $150,000 - $199,999 1.11% 1.82% 2.52% High School Graduate (12) 26.66% 27.55% 26.48% $100,000 - $149,999 7.04% 8.62% 10.04% Some College (13-15) 32.58% 32.34% 33.72% $75,000 - $99,999 14.21% 13.21% 13.55% Associates Degree Only 12.67% 11.17% 11.69% $50,000 - $74,999 20.68% 21.49% 21.94% Bachelors Degree Only 15.91% 13.31% 13.91% $35,000 - $49,999 22.19% 16.45% 16.76% Graduate Degree 4.12% 5.38% 5.60% $25,000 - $34,999 13.37% 12.62% 11.77% $15,000 - $24,999 11.03% 12.20% 11.03% $10,000 - $14,999 4.90% 4.49% 3.86% Under $9,999 4.62% 6.96% 6.67%

2018A Est. Average Household Income $54,831 $61,063 $63,030 2018A Est. Median Household Income $44,653 $46,898 $49,908 2018A Est. Per Capita Income $22,517 $23,774 $23,041

19 KILLEEN TEXAS

LIOR REGENSTREIF SENIOR MANAGING DIRECTOR INVESTMENTS SENIOR DIRECTOR, NET LEASED PROPERTIES GROUP ENCINO OFFICE Tel: (818) 212-2730 Fax: (818) 212-2710 [email protected] License: CA 01267761 SERI BRYANT ASSOCIATE ENCINO OFFICE Tel: (818) 212 -2655 Fax: (818) 212-2710 [email protected] License: CA 02042062

REPRESENTATIVE PHOTO