CVS Guaranteed Lease (Dark Store) CONFIDENTIALITY and DISCLAIMER

OFFERING MEMORANDUM

SAN ANTONIO TEXAS

CVS Guaranteed Lease (Dark Store) 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. LAWRENCE ALFALFA Picher CHRISTIAN 56 183 81 75 64 WOODS 177 Newkirk Miami Raton Monett STONE 64 TEXAS Beaver R. Salt Fork WASHINGTON NOWATA OTTAWA 65 TAOS 287 CIMARRON 64 Alva CRAIG 60 NeoshoNEWTON KAY BARRY 285 HARPER GRANT COLFAX 64 Cherokee Bartlesville Lake of Ponca City Table Rock L. the Cherokees BEAVER Kaw L. 60 Oologah L. Toll Cassville 160 281 Tonkawa Nowata 59 Guymon 270 MCDONALD Branson 64 Pawhuska Grove Cimarron R. OSAGE Vinita TANEY 71 Missouri 283 NOBLE DELAWARE 177 ROGERS Bella Vista Woodward Rio Grande 54 Hominy RIO ARRIBA UNION Clayton 169 Pea Ridge NMP 385 Perryton 412 60 GARFIELD 64 Taos WOODWARD PAWNEE Toll MAYES Jay CARROLL Abiquiu Res. 56 LIPSCOMB Cleveland L. Hudson Rogers Berryville BOONE Spearman 183 MAJOR Enid 64 BENTON Canadian R. SHERMAN Wolf Creek Beaver L. DALLAM Turley Claremore Ute Creek Corrizo Creek 87 77 Perry Toll Toll 84 ELLIS Fairview 412 Keystone L. Springdale HANSFORD OCHILTREE 412 60 Stillwater Siloam Springs Buffalo NR 83 Canton L. 412 Hennessey 69 Illinois River Dalhart 287 PAYNE Espanola Tulsa CANADIAN RIVER 270 BLAINE Sapulpa CHEROKEE Fayetteville MORA DEWEY 81 TULSA WAGONER Fort Gibson L. CREEK HARDING HUTCHINSON Canadian Toll Tahlequah Los Alamos 183 KINGFISHER Glenpool WASHINGTON MADISON Guthrie Cimarron R. NEWTON LOS ALAMOS Dumas HEMPHILL Watonga LINCOLN HARTLEY Stinnett Stilwell ROBERTS Toll White Rock LOGAN Bristow 62 Mora R. 54 MOORE ADAIR Washita River ROGER MILLS Bandelier NM 25 CUSTER 35 44 Lake Meredith NRA Oklahoma OKMULGEE Tenkiller Ferry L. Arkansas Borger Muskogee L. MeredithFritch Edmond Chandler Okmulgee FRANKLIN Las Vegas CRAWFORD OKLAHOMA MUSKOGEE Canadian R. OKFUSKEE SEQUOYAH JOHNSON Santa Fe Gallinas R. Alibates Flint Quarries NM El Reno 75 Clinton 40 Bethany Clarksville 87 CARSON CANADIAN 177 62 64 Santo Domingo Pueblo Conchas L. Van Buren Pampa Alma L. Dardanelle SANDOVAL Prague 40 Checotah POPE SANTA FE SAN MIGUEL OLDHAM POTTER Elk City Oklahoma City Del City Okemah MACINTOSH 40 WHEELER LOGAN GRAY Sayre CLEVELAND Arkoma Corrales Ute Res. 60 Panhandle Shawnee Eufaula Res. Fort Smith Bernalillo 285 84 BECKHAM Fort Cobb Res. Tuttle Stigler N. Fork Red R. New Cordell L. Thunderbird Eufaula Norman HASKELL Greenwood Russellville Petroglyph NM 40 44 POTTAWATOMIE 270 Toll Spiro Tucumcari Shamrock WASHITA CADDO GRADY Wewoka 283 Noble SEBASTIAN 62 SEMINOLE Albuquerque Amarillo 281 PITTSBURG Booneville DEAF SMITH Carnegie Poteau Holdenville 71 BERNALILLO 287 DONLEY Hobart HUGHES 40 YELL Canyon COLLINGSWORTH GREER L. Altus Chickasha Candadian R South Valley Purcell Nimrod L. QUAY 385 Clarendon 62 Toll McAlester 270 Santa Rosa KIOWA PERRY 277 MCCLAIN Heavener Waldron Pecos R. RANDALL ARMSTRONG Salt Fork Mangum LATIMER SCOTT VALENCIA Bosque Farms Hereford Wellington 183 TORRANCE Lindsay Ada 69 Hartshorne 59 84 81 85 Hollis GARVIN 77 PONTOTOC 75 Memphis COMANCHE Toll 270 Hot Springs Village GUADALUPE CASTRO 62 Altus LE FLORE Fort Sill Kiamichi R. Belen SWISHER CHILDRESS HARMON Marlow Wynnewood L. Sumner COAL GARLAND Friona BRISCOE Dimmitt Tulia Lawton STEPHENS Hot Springs NP CURRY Chickasaw NRA PUSHMATAHA Mena 60 Sulphur Coalgate JACKSON 60 60 TILLMAN Duncan Atoka L. POLK Hot Springs HALL Childress MURRAY MCCURTAIN PARMER 271 MONTGOMERY Walters Clovis 287 JOHNSTON Broken Bow L. HOT SPRING 54 283 Frederick 177 Atoka DE BACA 70 Quanah Toll 25 285 CARTER ATOKA HOWARD Muleshoe 44 Tishomingo 70 HARDEMAN COTTON 35 Plainview 70 Waurika Antlers SOCORRO Portales Olton Lockney Pine Creek L. Arkadelphia FLOYD Lone Grove SEVIER COTTLE Vernon Ardmore PIKE MOTLEY CHOCTAW MARSHALL CLARK BAILEY Burkburnett 70 Broken Bow Socorro Hale Center JEFFERSON LAMB Floydada 70 Hugo De Queen 67 62 Paducah 70 WILBARGER WICHITA LOVE HALE Nashville Littlefield Durant BRYAN 30 27 FOARD Iowa Park Wichita FallsCLAY RED RIVER Little River 380 New Mexico Marietta 69 62 71 Abernathy Red R. Idabel ROOSEVELT 83 L. Kemp Millwood L. Nocona 377 HEMPSTEAD LUBBOCK Henrietta Prescott Morton GRAYSON LAMAR LINCOLN 70 259 LITTLE RIVER 84 L. Texoma RED RIVER 385 Idalou Ralls KNOX 82 287 Paris Ashdown NEVADA BAYLOR MONTAGUE 82

Pecos River Crosbyton KING Clarksville Levelland L. Arrowhead COOKE Hope CHAVES DICKENS Seymour ARCHER Gainesville Sherman CROSBY Bowie 271 De Kalb COCHRAN HOCKLEY FANNIN Lubbock Brazos River Howe DELTA Roswell 380 281 Sulphur R. 62 87 Olney 81 Cooper Wake Village Ruidoso 70 183 Sanger Texarkana WISE 82 COLUMBIA YOAKUM DENTON BOWIE 277 TITUS MILLER TERRY Decatur FRANKLIN STONEWALL Denton Post McKinney HOPKINS Magnolia 82 380 380 MORRIS GARZA 380 Greenville 30 JACK COLLIN Brownfield LYNN KENT Haskell THROCKMORTON 79 L. Stamford HUNT 259 TABLE OF CONTENTS YOUNG Sulphur Springs CASS Atlanta LAFAYETTE 285A 59 SIERRA Tularosa Graham Lavon L. HASKELL Lewisville Plano L. Tawakoni Eagle Mountain L. Clear Fork CAMP Springhill Brazos R. Richardson 69 Winnsboro Lovington Seagraves Stamford Garland Lone Star CLAIBORNE ROCKWALL Vivian Rotan UPSHUR Holloman AFB Artesia PARKER RAINS MARION Alamogordo 82 SCURRY SHACKLEFORD Irving GAINES 180 Dallas 71 Homer 180 Breckenridge WOOD Jefferson White Sands NM LEA Lamesa Hubbard Creek L. DALLAS Gilmer OTERO Anson 180 80 Wills Point BOSSIER 285 Albany Mineola FISHER Hobbs Seminole Snyder JONES STEPHENS PALO PINTO DONA ANA DAWSON BORDEN 84 Fort Worth Grand Prairie Minden TARRANT Cross L. 70 283 Lancaster 80 25 Investment Summary...... 62 1 L. J B Thomas 20 Canton Longview CADDO HOOD Burleson 20 Lindale WEBSTER HOWARD Sweetwater VAN GREGG Eunice HARRISON Ranger ZANDT White Sands Abilene KAUFMAN Carlsbad MARTIN Clyde Alvarado SMITH Shreveport Colorado City EASTLAND 377 Cleburne Ennis Andrews 20 Cisco ERATH JOHNSON 287 Kilgore BIENVILLE Las Cruces ANDREWS MITCHELL ELLIS Cedar Creek Res. RUSK TAYLOR CALLAHAN SOMERVELL 175 Tyler 79 EDDY 277 54 Investment Highlights...... 2 NOLAN Stephenville 35W Athens Big Spring Glen Rose 45 Malakoff RED Anthony 67 77 Henderson Carlsbad Caverns NP RIVER Jal NAVARRO PANOLA 81 HENDERSON 69 DE SOTO 10 385 Stanton De Leon TEXAS 259 84 STERLING Dublin Hillsboro Corsicana 87 84 COMANCHE 79 Mansfield Anthony Red Bluff Reservoir North Fork Fabens BROWN 287 71 EL PASO Guadalupe 67 BOSQUE L. Whitney Jacksonville Aerial Map...... ECTOR Midland4 Winters HILL 62 E V Spence Res. Mountains NP Navarro Mills L. 84 Kermit MIDLAND 183 ANDERSON CHEROKEE Angelina R. Louisiana Fort Bliss LOVING Odessa RUNNELS Comanche 49 COKE Coleman El Paso Pecos River WINKLER GLASSCOCK Center Clifton Trinity R. 59 West Rusk NATCHITOCHES Ballinger Fairfield SHELBY 35 Mexia NACOGDOCHES Natchitoches COLEMAN Palestine Hamilton 80 MCLENNAN 84 Tenant Summary...... 5 Brownwood FREESTONE Nacogdoches HAMILTON SABINE 67Concho R. 283 69 Monahans Waco Bellmead Many 20 Colorado R. MILLS REAGAN San Augustine CULBERSON UPTON San Angelo 84 Groesbeck Pecos WARD CRANE 83 SAN 377 77 FALLS HOUSTON Crane CONCHO CORYELL LIMESTONE AUGUSTINE Gatesville LEON 171 87 MCCULLOCH Lufkin SiteHUDSPETH Plan...... 7 Twin Buttes Res. TOM Marlin 79 Crockett IRION GREEN 281 Brozas R. 96 SABINE RIO GRANDE REEVES 190 Big Lake LAMPASAS Diboll 285 287 10 Brady Creek NechesANGELINA R. Leesville San Saba Killeen TRINITY VERNON McCamey Brady SAN SABA Temple ROBERTSON Copperas Cove 190 Fort Polk South Area Map...... 8 MADISON JASPER Rosebud Van Horn Belton 69 NEWTON SCHLEICHER Madisonville Trinity 183 Jasper Fort Stockton BELL 190 87 Hearne De Ridder L. Buchanan BURNET 190 WALKER 190 MENARD Cameron PECOS Eldorado POLK CROCKETT Mason Burnet GRIMES JEFF DAVIS Llano MILAM BRAZOS Location Overview...... 10 Ozona WILLIAMSON Woodville L. Livingston 10 Huntsville BEAUREGARD 290 377 Llano R. Livingston Villa Ahumada 67 MASON Georgetown TYLER 79 Bryan R. Neches Marble Falls KIMBLE Pecos R. Sonora 96 LLANO Sobine R. 90 285 190 77 Caldwell 45 SAN Big Thicket Cedar Park Round Rock L. Conroe JACINTO 59 Location Highlights...... 385 13 Junction BURLESON Trinity River N PRES SUTTON BLANCO TRAVIS Navasota 277 GILLESPIE Bessmay-Buna Alpine Elgin Kountze CALCASIEU TERRELL West Lake Hills HARDIN 290 LEE ClevelandLIBERTY Pedernales River WASHINGTON ConroeMONTGOMERY Lumberton Lake Charles ORANGE Lyndon B. Johnson NHP 290 Giddings Brenham 10 Austin Demographics...... Marfa 14 87 10 HAYS Tomball 90 VAL VERDE 35 Bastrop Beaumont OrangeCalcasieu L. KERRKerrville 281 Kyle BASTROP ChampionsHARRIS Bellville L. Houston90 EDWARDS KENDALL Groves PRESIDIO Aldine San Marcos Lockhart AUSTIN WALLER Nederland CAMERON Ricardo Flores Magon 67 377 La Grange REAL 385 COMAL Highlands Boerne FAYETTE Sealy Spring Valley Port Arthur CALDWELL Winnie RIO GRANDE Amistad NRA Frio River BREWSTER W. Nueces R. BANDERA 90 Baytown JEFFERSON New Braunfels Luling 10 Houston CHAMBERS GUADALUPE Schulenburg GONZALES Rio Conchos Pasadena Live Oak COLORADO Rosenberg Stafford UVALDE Gonzales 77 Bacliff Seguin FORT BEND KINNEY Kirby 90A Amistad Res. 83 Friendswood Del Rio San Antonio Hallettsville 59 45 Texas City BEXAR 87 183 Lackland AFB GALVESTON Laughlin AFB LAVACA Hitchcock WILSON Nixon Wharton Big Bend NP MEDINA WHARTON Potrero Del Llano 90 81 Medina River Yoakum BRAZORIA Galveston Devine Uvalde Floresville El Campo 277 DE WITT Cuero Benavides Sweeny WEST BAY Pleasanton VICTORIA MAVERICK 57 FRIO Edna Karnes City Freeport ZAVALA JACKSON Pearsall KARNES MATAGORDA RIO GRANDE Kenedy Victoria Eagle Pass ATASCOSA Palacios Crystal City 59 GOLIAD 87 277 181 Port Lavaca Chihuahua Dilley San Antonio R. MATAGORDA Carrizo Springs Zaragoza CALHOUN Three Rivers 183 BAY Ciudad Cuauhtemoc DIMMIT MCMULLEN 37 77 Morelos Cotulla Nava Guerrero Beeville George West REFUGIO SAN ANTONIO LA SALLE BEE Meoqui Refugio BAY LIVE OAK ARANSAS Villa Union 35 L. Corpus Christi Delicias Mathis SAN PATRICIO Rockport Sinton Nueva Rosita JIM WELLS Aransas Pass Aguhta Nueces R. Naica 83 Muzquiz Freer Portland Sabinas WEBB San Diego Ciudad Camargo Mexico Alice NUECES Corpus Christi 59 DUVAL

Kingsville Bishop

Progreso Laredo KLEBERG Premont

Hebbronville Falfurrias

Jimenez Anahuac BROOKS

San Buenaventura ZAPATA KENEDY Padre Island NS 281 Nadadores JIM HOGG E R D A M A N U G A L Zapata Villa Frontera Candela GULF Castanos 77 Falcon Res. HIDALGO STARR Bustamante OF Raymondville Villaldama 83

Sabinas Hidalgo Rio Grande City WILLACY El Alamo MEXICO

Mission McAllen Harlingen 83 CAMERON Hidalgo 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

INVESTMENT SUMMARY

7031 MARBACH RD, SAN ANTONIO, TX 78227

PRICE: $7,253,000 CAP: 6.00% RENT: $435,226

OVERVIEW ANNUALIZED OPERATING DATA Price $7,253,000 Lease Term Annual Rent Gross Leasable Area (GLA) 14,600 SF Current Term $435,226 Lot Size (approx.) 1.69 Acres Option 1 $456,987 Net Operating Income $435,226 Option 2 $479,836 CAP Rate 6.00% Option 3 $503,828 Year Built / Renovated 2015 Option 4 $529,019

$555,470 LEASE ABSTRACT Option 5

Lease Type NNN

Lease Term Remaining 21 Years

Lease Start 7/16/2015

Lease Expiration 1/31/2041

Renewal Options 5x5

Increases 5% rent bumps during option periods (Dark unit)

Roof & Structure Tenant Responsible

1 2 INVESTMENT HIGHLIGHTS NNN

25 year NNN lease Features excellent visibility: Newer construction, This 25 year true NNN lease offers a with 21 years remaining Daily traffic counts exceed built in 2015 passive investor a corporate guaranteed on base term 41,000 vehicles per day CVS lease for the remainder of the base passing directly in term (21 years). front of the site Strategically located at the hard corner of West Military Drive and Marbach Road. This location serves as a strong future redevelopment opportunity, on the corner of a “main & main” location with strong visibility.

Built in 2015, this investment grade opportunity carries no landlord responsibilities, making it a truly passive investment opportunity with a strong and stable return. The Tenant vacated the premises April 2019. CVS is obligated 1.3 miles from Lackland Located just 3-miles Barriers to entry to pay the remaining term of the base Air Force Base, the largest from an Amazon due to both government lease term. Air Force Base installation Fulfillment Center and infill presence in the Country

3 4 INVESTMENT HIGHLIGHTS

tt Corporate guaranteed lease for the remainder of the base term. (Dark unit) tt Excellent visibility for a future redevelopment opportunity tt Important strategic location across from Walgreens tt True hard-corner location with 41,000 cars per day at intersection tt San Antonio is the 7th most populous city in the country, and 2nd largest city in Texas tt Infill location with dense population (16,851 residents within one mile radius) tt True NNN lease with zero landlord responsibilities tt Guaranteed by CVS corporate (NYSE:CVS)

289,619 $55,704 TOTAL AVERAGE POPULATION HOUSEHOLD WITHIN 5-MILE INCOME WITHIN RADIUS 7-MILE RADIUS 24,400 VPD - W MILITARY DRIVE 16,665 VPD - MARBACH ROAD 5 Matheson (Air Separation Unit) USAF I-410

Part of Lackland AFB Anson Jones Middle School San Antonio Event Center

John Jay High School

Walgreens W MILITARY DR – 24,400 VPD Sunnybrook Christian Academy

MARBACH ROAD – 16,665 VPD

Mary Hull Elementary School

Westwood Terrace Elementary School Cable Elementary Lackland Air School Force Base 3.4 miles south of site 6 TENANT SUMMARY

CVS Health Corporation is a Fortune 500® company (#7) and one of the nation’s largest and most innovative health care providers. Together with its subsidiaries, the company provides integrated pharmacy health care services in 43 states across the U.S, the District of Columbia, and Puerto Rico and operates through two critical business segments; CVS acquired Aetna for $70 Billion. Aetna Inc. is one of the pharmacy services and retail pharmacy. What makes CVS unique Nation’s Leading Diversified Health Care Benefits Companies among its competitors is the company’s proprietary and fully integrated with a network that stretches across the Country / Globe. Pro pharmacy benefit management system. The PBM system was created Forma CVS / Aetna combined Annual Revenue is $221 Billion. through the company’s acquisition of the Caremark brand in 2007. This segment serves employers, insurance companies, unions, government employee groups, health plans, managed Medicaid plans and plans offered on public and private organizations, other sponsors of health benefit plans, and individuals under the CVS/caremark Pharmacy Services, Caremark, CarePlus CVS/pharmacy, RxAmerica, Accordant, SilverScript, Coram CVS/specialty, NovoLogix, and Navarro Health Services names. The retail pharmacy segment sells prescription drugs, over-the-counter drugs, beauty products and cosmetics, personal care S&P Investment Grade Credit Rating of “BBB” for the Parent products, convenience foods, seasonal merchandise, and greeting Company. Parent Company currently #7 on the Fortune 500. The cards, as well as provides photo finishing services. CVS / Aetna Merger, will create a Fortune #4 Company with more than $18 Billion in Pro Forma EBITDA.

7 CVS PHARMACY

WOONSOCKET, RI HEADQUARTERS

1964 9,800

FOUNDED LOCATIONS

RETAIL DRUG PUBLIC STORE OWNERSHIP INDUSTRY

LARRY J. JONATHAN C. MERLO ROBERTS

CEO EVP/COO

8 SITE PLAN

W MILITARY DRIVE

MARBACH ROAD

9 Cross Mountain

Selma Helotes

Cibolo Universal City

Windcrest

Leon Valley Alamo Heights Terrell Hills

San Antonio

China Grove

Atascosa 10 Elmendorf Located on the SWC of Marbach Rd & W. Military Dr, directly across the street from the subject property.

In this center is a Check ’N Go, Rent-A-Wheel/Rent-A-Tire and Dairy Queen.

11 12 LOCATION OVERVIEW

SAN ANTONIO, TEXAS

San Antonio is the seventh most populous city in the United States The subject site is most influenced by: Lackland Air Force Base and the second most populous city in both Texas and the Southern is home to more than 120 Department of Defense and associate United States. San Antonio’s notable attraction includes the River Walk, organizations, including the 37th Training Wing, the largest training wing the Tower of the Americas, SeaWorld, the Alamo Bowl, and Marriage in the U.S. Air Force. Lackland is the Air Force’s only site for enlisted Island. Commercial entertainment includes Six Flags Fiesta Texas and basic military training, and also offers professional and technical skills, Morgan’s Wonderland amusement parks. According to the San Antonio and English language training for members of the U.S. Air Force, other Convention and Visitors Bureau, the city is visited by about 32 million military services, government agencies, and allies. Its four primary tourists a year. It is home to the five-time NBA champion San Antonio training functions graduate more than 86,000 students annually. In Spurs, and hosts the annual San Antonio Stock Show & Rodeo, one of 2005, Lackland was recommended for joint basing for the three major the largest such events in the United States. installations around the city: Fort Sam Houston, Lackland AFB and Randolph AFB. In 2009, all 3 bases were included into Lackland AFB. The U.S. Armed Forces have numerous facilities in and around San Antonio; Fort Sam Houston is the only one within the city limits. Lackland San Antonio has a diversified economy with a gross domestic product Air Force Base, Randolph Air Force Base, Lackland AFB/Kelly Field (GDP) of approximately $96.8 billion. This ranks the city fourth in Texas Annex, Camp Bullis, and Camp Stanley are outside the city limits. Kelly and 38th in the United States. San Antonio’s economy focuses primarily Air Force Base operated out of San Antonio until 2001, when the airfield on military, health care, government-civil service, financial services, oil was transferred to Lackland AFB. The remaining parts of the base and gas, and tourism. Within the past twenty years, the city has become were developed as Port San Antonio, an industrial/business park and a significant location for American-based call centers and has added a aerospace complex. San Antonio is home to six Fortune 500 companies sizable manufacturing sector centered around automobiles. and the South Texas Medical Center, the only medical research and care Located about 10 miles northwest of Downtown is South Texas Medical provider in the South Texas region. Center, a conglomerate of various hospitals, clinics, and research (Southwest Research Institute and Texas Biomedical Research Institute) and higher educational institutions.

13 LOCATION OVERVIEW (CONTINUED)

Over twenty million tourists visit the city and its attractions every year, In 2015, San Antonio was ranked at No. 50 by Forbes magazine on their contributing substantially to its economy, primarily due to The Alamo list of the Best Places for Business and Careers, while being listed as the and the River Walk. The Henry B. Gonzalez Convention Center alone 15th best market for job growth. hosts over 300 events annually with more than 750,000 convention The subject CVS: located at 7031 Marbach Rd, San Antonio, TX 78227 delegates from around the world. Tourism provided over 130,000 jobs, is in the epicenter and surrounded by the off-shoots of Lackland AFB. and it had an economic impact of $13.6 billion in the local economy. The main gate can be seen from the site. The Veterinary Treatment The City of San Antonio received $195 million in the same year from the Facility, US Renal Care-Gateway, Texas Health and Human Services hospitality industry, with revenues from hotel occupancy tax, sales taxes Commission, and H-E-B Pharmacy are all surrounding the site. and others. Additionally, it is near well-known nationwide companies such as Wells San Antonio is the headquarters of six Fortune 500 companies: Valero Fargo, Enterprise Rent-A-Car, and Dollar Tree. In the surrounding area Energy, Andeavor (formerly Tesoro Corp), USAA, iHeartMedia, NuStar there are also popular chain restaurants such as Burger King, Pizza Hut, Energy, and CST Brands, Inc., H-E-B, the 13th-largest private company Little Caesars Pizza, McDonald’s, and Sonic Drive-In. in the US is also based in San Antonio. Other companies headquartered in the city include Bill Miller Bar-B-Q Enterprises, Carenet Healthcare Services, Security Service Federal Credit Union, Visionworks of America, Frost Bank, Harte Hanks, Kinetic Concepts, SWBC, NewTek, Rackspace, Taco Cabana, Broadway Bank, Zachry Holdings/Zachry Construction Company, Randolph-Brooks Federal Credit Union, SAS, and Whataburger. The North American Development Bank, a development institution jointly held by the governments of the U.S. and Mexico, is headquartered in San Antonio as well. Other notable companies that maintain sizable presences in the city include Hulu, OCI, Kaco New Energy, Silver Spring Networks, Toyota, Argo Group, EOG Resources, Microsoft, Cogeco Peer1, and Boeing. 14 Located on the SEC of Marbach Rd & W. Military Dr, directly across the street from the subject property.

In this center is a Chevron Station, Little Cesar’s Pizza, La Fiesta Grocers, Marbach Bingo, LOL Liquors, and Cash American Pawn.

15 Cross Mountain

Selma Helotes

Cibolo Universal City

Windcrest LOCATION HIGHLIGHTS

Leon Valley Alamo Heights Terrell Hills 12 Miles from Downtown San Antonio SAN ANTONIO, TX NEAR THE GATE OF LACKLAND AIR FORCE BASE San Antonio

Lackland Air China Grove Force Base

3.4 Miles from Lackland Air Force Base Located just 12 Miles Located near the Gate from Downtown of the Country’s San Antonio largest Air Force Base

Atascosa Elmendorf Training Center MAJOR EMPLOYERS: 2017 SAN ANTONIO, TX

Joint Base San Antonio (JBSA) 75,972

H.E.B. Food Stores 22,000

USAA 17,163

Northside Independent School District 13,969

City of San Antonio 12,231 North East Independent School District 9,292 Congested Traffic Strategically located for Methodist Health Care System 8,960 Counts exceed 41,000+ high visibility and ease San Antonio Independent School District 7,374

Baptist Health Systems 6,432 Vehicles Per Day in ingress/egress

Wells Fargo 5,010

16 17 DEMOGRAPHICS / SAN ANTONIO, TX 289,619 Total Population Within 5-Mile Radius

$55,704 $44,401 Average Household Income Median Household Income Within 5-Mile Radius Within 5-Mile Radius

90,093 41.79% From 2000 Total Households in 5-Mile Radius

18 POPULATION 1 MILE 3 MILES 5 MILES HOUSEHOLDS BY EXPENDITURE 1 MILE 3 MILES 5 MILES 2023 Projection Total Average Household Retail Expenditure $52,003 $53,095 $58,826 Total Population 18,276 94,345 310,726 Consumer Expenditure Top 10 Categories 2018 Estimate Housing $13,669 $14,142 $15,346 Total Population 18,279 88,807 289,619 Transportation $10,488 $10,887 $11,853 2010 Census Shelter $7,490 $7,800 $8,419 Total Population 17,126 81,397 265,354 Food $5,687 $5,813 $6,183 2000 Census Personal Insurance and Pensions $3,813 $4,138 $4,894 Total Population 16,368 64,915 208,721 Utilities $3,421 $3,494 $3,731 Current Daytime Population Health Care $3,218 $3,113 $3,415 2018 Estimate 20,064 84,150 259,110 Entertainment $2,088 $2,110 $2,346 Apparel $1,388 $1,451 $1,546 HOUSEHOLDS 1 MILE 3 MILES 5 MILES Household Furnishings and Equipment $1,325 $1,379 $1,541 2023 Projection Total Households 5,821 29,007 99,981 POPULATION PROFILE 1 MILE 3 MILES 5 MILES

2018 Estimate Population By Age Total Households 5,647 26,488 90,093 2018 Estimate Total Population 18,279 88,807 289,619 Average (Mean) Household Size 3.16 3.05 3.04 Under 20 32.98% 32.92% 32.51% 2010 Census 20 to 34 Years 22.67% 28.30% 26.08% Total Households 5,327 24,267 82,798 35 to 39 Years 6.76% 6.69% 6.97% 2000 Census 40 to 49 Years 12.00% 10.57% 11.26% Total Households 5,116 19,474 63,539 50 to 64 Years 14.55% 12.37% 13.52% Occupied Units Age 65+ 11.04% 9.15% 9.65% 2023 Projection 5,821 29,007 99,981 Median Age 31.15 28.28 29.69 2018 Estimate 5,864 27,095 92,336 Population 25+ by Education Level 2018 Estimate Population Age 25+ 10,909 50,039 168,772 HOUSEHOLDS BY INCOME 1 MILE 3 MILES 5 MILES Elementary (0-8) 8.80% 7.85% 8.66% 2018 Estimate Some High School (9-11) 16.28% 12.94% 12.81% $150,000 or More 1.06% 1.70% 2.89% High School Graduate (12) 35.03% 32.64% 29.93% $100,000 - $149,000 4.60% 6.67% 9.58% Some College (13-15) 24.01% 25.97% 24.58% $75,000 - $99,999 9.99% 9.97% 11.12% Associate Degree Only 6.14% 6.70% 7.02% $50,000 - $74,999 23.12% 21.63% 21.27% Bachelors Degree Only 6.80% 9.03% 10.35% $35,000 - $49,999 16.90% 17.10% 15.61% Graduate Degree 1.15% 2.93% 4.12% Under $35,000 44.33% 42.93% 39.55% Average Household Income $46,473 $49,869 $55,704 Median Household Income $38,628 $40,190 $44,401 Per Capita Income $14,358 $15,438 $17,848 19 SAN ANTONIO 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