3405 S SAM HOUSTON PKWY E HOUSTON, TX 77047 INVESTMENT OFFERING INVESTMENT HIGHLIGHTS

INVESTMENT SUMMARY TRIPLE NET LEASE STRUCTURES/ IDEALLY LOCATED IN HOUSTON, TEXAS — FEE SIMPLE OWNERSHIP ONE OF THE TOP GROWTH MARKETS • Tenant is responsible for taxes, insurance, and CAM IN THE COUNTRY OFFERING PRICE: • Passive investment ideal for 1031 exchange buyer • AHHI within a 3-mile radius is approximately $96,000 • Over 67,000 consumers in a 3-mile radius $4,174,000 STRONG/RECOGNIZABLE NAME BRANDS • The population in Houston MSA area grew by over (SHELL & 24SEVEN CS) 1,000,000 from 2018 to 2021 • The Property is occupied by highly recognizable national • Out of the country’s 20 most populous cities, Houston is tenants, Shell & 24SevenCS the third most affordable to live in. NOI: • Over 500,000 new jobs were added in the Houston MSA • 24Seven has more than 40+ locations in Houston $240,000 area since 2018. • About 82,000 jobs added in the past 12 months. WELL BELOW MARKET RENTS / PROVIDES SAFETY AND UPSIDE FOR THE INVESTOR • As of June 2019, 3.2 million people were employed in the Houston MSA. • Burger King is only paying $60,000 annually for this drive- CAP RATE: • The Houston MSA has a GDP of $490 billion, making it the thru location, which is nearly 50% below market 7th largest U.S. metro economy 5.75% • The average fast food site in the Houston MSA is paying $110,000 annually SIGNALIZED, INTERSECTION / HIGHLY VISIBLE / EASY ACCESS / DRIVE-THRU EST. RENTABLE SQ FT: • Located at the signalized, hard corner intersection of S 6,560 SF Sam Houston Way and Scott Street ( 52,800 vehicles per day at intersection) LOT SIZE: • The property features signage of Shell at the signalized 1.54 AC (67,283 SF) intersection PARKING SPACES: • There are multiple access points into the property Approx. 49 parking spaces • Burger King features a drive-thru increasing consumer draw TENANT NAME: to the property Shell, 24 Seven, Burger King LOCATION: Houston, TX YEAR BUILT: 2016

AREA OVERVIEW

Houston is the most populous city in the U.S. WEATHER TOP EMPLOYERS IN HOUSTON state of Texas, fourth-most populous city in the , most populous city in the Southern United States, as well as the sixth-most populous in North America, with an estimated 2019 population 204 of 2,320,268. Located in Southeast Texas near SUNNY DAYS Galveston Bay and the Gulf of Mexico, it is the 93° 42° seat of Harris County and the principal city of the AVERAGE AVERAGE HIGH LOW , which is the fifth-most populous metropolitan statistical area in the United States and the second-most populous in Texas after the Dallas–Fort Worth metroplex, HOUSTON AREA FACT FILE with a population of 7,066,141 in 2019. Houston is the southeast anchor of the greater mega region 21.6% Population growth since 2010 known as the Texas Triangle. 12.7% Home appreciation in the last year Comprising a total area of 637.4 square miles (1,651 km), Houston is the eighth-most expansive city in 34 Median Age the United States (including consolidated city- counties). It is the largest city in the United States by total area, whose government is not consolidated 430,436 Estimated population with that of a county, parish, or borough. Though primarily in Harris County, small portions of the city 27 Minutes average commute time extend into Fort Bend and Montgomery counties, bordering other principal communities of Greater Houston such as Sugar Land and The Woodlands. HOUSTON INDUSTRY STATISTICS HOUSEHOLD EXPENDITURES INDUSTRY EMPLOYMENT PERCENTGE TRADE TRANSPORT & UTILITIES 95,897 17.20% INFORMATION 6,203 1.11% 5.3% 6.1% FINANCIAL ACTIVITIES 29,900 5.36% FOOD AND ALCOHOL 6.4% PROFESSIONAL & BUSNIESS SERVICES 70,184 12.59% 28.0% TRANSPORTATION EDUCATION & HEALTH 231,232 41.47% ENTERTAINMENT LEISURE AND HOSPITALTIY 43,981 7.89% 14.0% HOUSEHOLD OTHER SEVICES 19,486 3.49% APPAREL PUBLIC ADMIN 21,046 3.77% NATURAL RESOURCES & MINING 178 0.03% 25.4% EDUCATION 14.9% CONSTRUCTION 17,481 3.13% HEALTH MANUFACTURING 22,065 3.96% AREA OVERVIEW

TALENT TALKS DEMOGRAPHICS Percentage of persons with bachelor’s 3755 N MACGREGOR WAY degree or higher 1 MILE 3 MILES 5 MILES HOUSTON, TX 77004 POPULATION 2020 Estimated Population 16,963 155,980 430,436 18% 16% 2025 Projected Population 18,556 168,737 459,823 Bachelors Advanced 2010 Census Population 16,182 138,029 385,714 2000 Census Population 14,772 133,790 371,723 Projected Annual Growth 2020 to 2025 1.9% 1.6% 1.4% Historical Annual Growth 2000 to 2020 0.7% 0.8% 0.8% 23% 6% 2020 Median Age 32.3 33.5 34.1 Some College Associates HOUSEHOLDS 2020 Estimated Households 6,409 65,530 179,272 2025 Projected Households 7,298 72,463 195,159 HOUSING MARKET 2010 Census Households 5,877 53,739 150,618 2000 Census Households 5,916 49,730 136,605 $149,700 Projected Annual Growth 2020 to 2025 2.8% 2.1% 1.8% MEDIAN LIST PRICE Historical Annual Growth 2000 to 2020 0.4% 1.6% 1.6% INCOME $201,276 2020 Est. Average Household Income $61,885 $79,484 $106,836 MEDIAN HOME VALUE ETHNICITY $270,000 2020 Est. White 16.9% 37.9% 46.9% MEDIAN SALE PRICE 2020 Est. Black or African American 70.8% 39.5% 29.8% 2020 Est. Asian or Pacific Islander 5.1% 6.8% 6.2% 2020 Est. American Indian or Native Alaskan 0.4% 0.5% 0.5% 2020 Est. Other Races 6.8% 15.3% 16.5% 2020 Est. Hispanic 12.2% 35.2% 41.8% BUSINESS 2020 Est. Total Businesses 579 8,701 30,490 2020 Est. Total Employees 5,737 109,800 420,028 MAP

1 MILE 3 MILES 5 MILES N

NOT TO SCALE

HIGHWAY 288 (

±108,290 VPD)

±41,000 VPD)

SAM HOUSTON PARKWAY (

± 21,000 VPD)

SCOTT STREET (

±11,800 VPD) SAM HOUSTON TOLLWAY ( PROPERTY SPECIFICATIONS

ADDRESS LAND AREA RENTABLE AREA OWNERSHIP YEAR BUILT

3405 S Sam Houston Pkwy E Fee Simple (Land & Building) 1.54 AC (67,283 SF) 6,560 SF Houston, TX 77047 2016

PARKING ACCESS TRAFFIC COUNTS PARCEL MAP

There is three (3) access points, Approx. 49 parking spaces Scott St. ±11,800 VPD APN: 138-063-001-0001 One (1) along S Sam Houston S. Sam Houston Pkwy E. ±41,000 VPD Pkwy E., Two (2) along Scott St. Cullen Blvd. ± 20,500 VPD SITEPLAN

SCOTT STREET S. SAMHOUSTONPARKWAYE SAM HOUSTON TOLLWAY TENANT PROFILE

Burger King Shell www.burgerking.com www.shell.com

Houston Food Inc. – Largest Burger King Franchisee. Owns and operated Shell Oil Company is the United States-based wholly owned subsidiary of Royal over 600+ Burger Kings Restaurant. Dutch Shell, a transnational corporation “oil major” of Anglo-Dutch origins, Burger King has been in business for over 60 years and owns or franchises more which is amongst the largest oil companies in the world. Approximately 80,000 than 14,000 Burger King Restaurants in approximately 100 countries and US Shell employees are based in the U.S. Its U.S. headquarters are in Houston, territories worldwide, almost all of which are franchised. Burger King generates Texas. Shell Oil Company, including its consolidated companies and its share revenues from three sources: retail sales at company restaurants; franchise in equity companies, is one of America’s largest oil and natural gas producers, revenues, and property income from restaurants that BKH leases or subleases natural gas marketers, gasoline marketers and petrochemical manufacturers. to franchisees. In 2014, Restaurant Brands International Inc formed to serve as the indirect parent of Tim Hortons and its consolidated subsidiaries, and Burger Shell is the market leader through approximately 25,000 Shell-branded gas King Worldwide and its consolidated subsidiaries. Since 2010, the Burger King stations in the U.S. which also serve as Shell’s most visible public presence. At brand has increased annual net restaurant growth by approximately four times, its gas stations Shell provides diesel fuel, gasoline and LPG. Shell Oil Company from adding 173 new units in 2010, to 735 new restaurants in 2016. This growth was a 50/50 partner with the Saudi Arabian government-owned oil company has made Burger King one of the fastest growing QSRs in the world. Burger King Saudi Aramco in Motiva Enterprises, a refining and marketing joint venture has implemented a modernization plan, and will offer incentives to franchisees which owns and operates three oil refineries on the Gulf Coast of the United who remodel their stores in the new modern format. States. However, Shell is currently divesting its interest in Motiva.

Company Type: Public (NYSE: QSR) Company Type: Public (NASDAQ: RYDAF) Locations: 14,000 Locations: 25,000 Employees: 34,000 Employees: 83,000 2020 Assets $22.7 Billion 2020 Assets $379 Billion 2020 Revenue $4.87 Billion 2020 Equity $158 Billion S&P Rated: B+ S&P Rated: A+ Headquarters: Miami, FL Headquarters: The Hague, Netherlands

RENT ROLL

MONTHLY RENTAL RATES ANNUAL RENTAL RATES % OF RECOVERY LEASE LEASE SUITE TENANT NAME SF PROPERTY DATE INCREASE RENT PSF RENT PSF % OF TOTAL TYPE START EXPIRATION LEASE OPTIONS 100 24Seven (Convenience Store) 3,810 58% Current $15,000 $3.94 $180,000 $47.24 75% NNN 5/1/2017 New 10-Year 2 (5-Year) Shell (Fuel Agreement) Year 5 10% $16,500 $4.33 $198,000 $47.24 Lease at COE Option 1: 10% inc. Option 2: 10% inc.

100 Burger King 2,750 42% Current $5,000 $1.82 $60,000 $21.82 25% NNN 12/1/2017 11/30/2027 6 (5-Year) July -2021 10% $5,500 $2.00 $66,000 $24.00 Option 1: 10% inc. Option 2: 10% inc. Option 3: 10% inc. Option 4: 10% inc. Option 5: 10% inc. Option 6: 10% inc.

TOTAL OCCUPIED 6,560 100% $20,000 $3.05 $240,000 $36.59 100%

TOTAL VACANT 0 0% $0 $0 0%

TOTAL / WTD. AVG 6,560 100% $20,000 $3.05 $240,000 $36.59 100% JOSEPH CHICHESTER RICHARD CHICHESTER THOMAS CHICHESTER MATT BROOKS CO-BROKER: Managing Director President & CEO Managing Director Managing Director BRUCE FRANKEL [email protected] [email protected] [email protected] [email protected] Lic. No.: 9000477 (949) 221-1813 (949) 221-1818 (949) 221-1820 (949) 221-1832 License No. 01915138 License No. 00777637 License No. 01915137 License No. 01976931

18301 Von Karman Ave., Suite 800, Irvine, CA 92612 P (949) 221-1800 farislee.com

Faris Lee Investments (“FLI”) has been engaged as the exclusive financial reasonably reliable. Summaries of any documents are not intended to in connection with the sale of the Property shall be limited to those advisor to the Seller in connection with Seller’s solicitation of offers for the be comprehensive or all-inclusive, but rather only outline some of the expressly provided in an executed Purchase Agreement and shall be purchase of this property. Prospective purchasers are advised that as part provisions contained therein and qualified in their entirety by the actual subject to the terms thereof. In no event shall a prospective purchaser of the solicitation process, Seller will be evaluating a number of factors document to which they relate. have any other claims against Seller or FLI or any of their affiliates or any including the current financial qualifications of the prospective purchaser. of their respective officers, directors, shareholders, owners, employees, Seller expressly reserves the right in its sole and absolute discretion to No representation or warranty, expressed or implied, is made by the Seller, or agents for any damages, liability, or causes of action relating to this evaluate the terms and conditions of any offer and to reject any offer without FLI, or any of their respective affiliates as to the accuracy or completeness solicitation process or the marketing or sale of the Property. providing a reason therefore. Further, Seller reserves the right to terminate of the information contained herein. Prospective purchasers should make the solicitation process at any time prior to final execution of the Purchase their own projections and form their own conclusions without reliance Prospective purchasers are not to construe the contents of this Offering Agreement. upon the material contained herein and conduct their own due diligence, Memorandum or any prior or subsequent communication from FLI or including engineering and environmental inspections, to determine the Seller or their affiliates or any of their respective officers, directors, The information contained in this Offering Memorandum is confidential and condition of the Property and the existence of any potentially hazardous shareholders, owners, employees, or agents as legal, tax, or other furnished solely for the purpose of a review by a prospective purchaser of the material located at the Property site or used in the construction or advice. Prior to submitting an offer, prospective purchasers should Property, and it is not to be used for any other purpose or made available maintenance of the building at the Property site. consult with their own legal counsel and personal and tax advisors to any other person without the express written consent of Seller or FLI. to determine the consequences of an investment in the Property and The material is based in part upon information supplied by the Seller and A prospective purchaser’s sole and exclusive rights with respect to this arrive at an independent evaluation of such investment. in part upon financial information obtained by FLI from sources it deems prospective transaction, the Property, or information provided herein or