Coffee 140 FM 1069, Aransas Pass, 78336 Single Tenant Solutions

SINGLE TENANT RETAIL INVESTMENT OFFERING • TEN (10) YEAR PRIMARY TERM • CORPORATE NET LEASE • RENT INCREASES 10% EVERY 5 YEARS • TEXAS IS AN INCOME-TAX FREE STATE • ADJACENT TO LOWE’S & WALMART • STARBUCKS CREDIT RATING IS “BBB+”

For additional information contact: Barry Silver The Silver Group Email: [email protected] www.thesilver-group.com Phone: (415) 461 - 0600 / (415) 518-8060 Investment Summary - Starbucks Coffee 140 FM 1069, Aransas Pass, Texas 78336 Single Tenant Solutions

Purchase Price: $2,235,294 The subject property is a newly constructed, Starbucks Drive-Thru in Aransas Pass, Texas. The Initial Cap Rate: 5.1% site consists of a freestanding ± 1,950 sf building, with drive through, on a ± 0.58 acre Lease Terms: parcel. Starbucks chose this high traffic (± 21,220 VPD) location adjacent to two of the area’s busiest • Ten (10) Year Primary Term retailers Lowe’s Home Improvement and Walmart • Minimal Landlord Obligations Supercenter. Other traffic generators in the immediate area include • Rent Increases 10% Every 5 Years Walgreens Drugstore, Dollar Tree, Army / Navy Credit Union, Aaron’s, McDonald’s, , , CITGO, Murphy USA • Four x 5 Year Renewal Options and Fairfield Inn. Additional national retailers nearby include H-E-B Grocery, Tractor Supply, Dollar General, Family Dollar, NAPA Auto, Sonic Drive-In, , Popeye’s, AutoZone and O’Reilly Auto. Annual Rent Schedule: Aransas Pass is located 18 miles northeast of Corpus Christi (pop. $114,000 Years 1 - 5 348,000) and 11 miles east of Portland (pop. 17,025) providing surrounding residents and visitors a strong retail hub. Starbucks - $125,400 Years 6 - 10 Aransas Pass is perfect for an investor seeking management-free income from an industry leading, public company with an investment Option Rent Schedule: grade credit rating. $137,940 Years 11 - 15 Land Area: ± 0.58 Acres (± 25,038 SF) $151,734 Years 16 - 20 Building Area: ± 1,950 SF w/ drive thru $166,907 Years 21 - 25 $183,598 Years 26 - 30 3 mile 5 mile Population: 11,627 21,746 Projected Rent Start Date: August 2021 Average HH Income: $64,082 $67,823

The information contained herein has been received from sources we believe to be reliable, but we have made no independent investigation of the accuracy or completeness and make no representation thereto. The above is subject to errors, omissions, or withdrawal from the market. The Silver Group advises all interested parties to conduct their own independent due diligence and not to soley depend on this memorandum.

The Silver Group • Phone: (415) 461 - 0600 Site Plan - Starbucks Coffee 140 FM 1069, Aransas Pass, Texas 78336 Single Tenant Solutions

The Silver Group • Phone: (415) 461 - 0600 Aerial Map - Starbucks Coffee 140 FM 1069, Aransas Pass, Texas 78336 Single Tenant Solutions ± 10,407 VPD

±

18,900 VPD

± 10,812 VPD

The Silver Group • Phone: (415) 461 - 0600 City Map - Starbucks Coffee 140 FM 1069, Aransas Pass, Texas 78336 Single Tenant Solutions

High School

The Silver Group • Phone: (415) 461 - 0600 Starbucks Coffee 140 FM 1069, Aransas Pass, Texas 78336 Single Tenant Solutions

ABOUT THE TENANT ABOUT THE AREA Starbucks Coffee Company 2020 Global Sales: $23.5 Billion 2020 Global Net Earnings: $928 Million 2020 U.S. Net Revenues: $16.8 Billion Publicly Traded on NASDAQ (”SBUX”)

Starbucks is the premier global specialty coffee brand operating in 75 countries. Since its founding Aransas Pass, Texas is the daily needs retail hub serving San Patricio County in 1971, the Company has grown to 33,000 locations and its population of 67,000 residents. Large adjacent retailers of Walmart worldwide with 2020 sales exceeding $23 billion and Supercenter and Lowe’s Home Improvement along with commuters and operating income of $1.56 billion. The Company travelers moving between Corpus Christi and surrounding communities roasts high-quality whole bean coffees and sells drive combined vehicular traffic counts at the intersection to over 40,000 them, along with fresh, rich brewed coffees, Italian vpd. Market economic stability is driven by primary industries of oil & gas, Style espresso beverages, cold blended beverages, a import/export businesses, shrimping and farming. The area is also a popular variety of complimentary food items, a selection of tourist destination for saltwater sports fishing, hunting and has many nearby premium teas, and beverage related accessories and pedestrian beaches. equipment. The brand portfolio also includes Seattle’s Best Coffee, Tazo teas, , Ethos Water, La Boulange, Evolution Fresh & Torrefazione Immediate surrounding national retailers Tractor Supply, Walgreens Italia. Starbucks maintains an investment grade credit rating of BBB+ Drugstore, Navy / Army Community Credit Union, McDonald’s, Pizza Hut, and trades on the NASDAQ under ticker symbol “SBUX”. Starbuck’s 2020 and Whataburger also drive daily traffic. No direct competition exists in the financial performance was impacted by the Covid 19 pandemic but by 2nd market and the nearest Starbucks location is over 11 miles southwest in a quarter of 2021, reported double digit comparable store sales increases. different city (Portland, TX) and traffic pattern. Approximately 80 percent of Starbucks’ 2020 U.S. transactions were drive-thru or mobile- order-and-pay pick up using the Starbucks App. Aransas Pass is on the mainland of Texas and is connected to Mustang Island Their dynamic strategy shows ability to flex with rapidly evolving customer (which contains the city of Port Aransas’ 4,000 residents) by a causeway and preferences of social distancing using mobile ordering and contactless free ferry. By Texas State Highway 35 and U.S. Route 181, Aransas Pass is 18 revenue generating methods. As a result, the total number of 90-day active miles northeast of Corpus Christi (348,000 residents). members in Starbucks’ Rewards Loyalty program increased 10% year-over- year.

The Silver Group • Phone: (415) 461 - 0600 Demographics - Starbucks Coffee Site Selection February 17, 2021 140 FM 1069, Aransas Pass, Texas 78336 Single Tenant Solutions

Demographic Snapshot Comparison Report for Starbucks Coffee, 150 S FM 1069, Aransas Pass, TX, 78336:

1 mile(s) 3 mile(s) 5 mile(s)

Population: 2019 Total Population 1,418 11,627 21,746 Female Population 49.08% 49.44% 49.33% Male Population 50.92% 50.56% 50.67% Population Density 452 412 277 Population Median Age 38.8 38.8 36.4 Employed Civilian Population 16+ 668 5,060 9,786 % White Collar 44.1% 43.9% 46.0% % Blue Collar 55.9% 56.1% 54.0% Total Q3 2019 Employees 804 3,429 5,523 Total Q3 2019 Establishments* 59 409 629 Population Growth 2000-2010 4.13% -1.42% -1.07% Population Growth 2019-2024 -3.80% 1.44% 4.10% Income: 2019 Average Household Income $65,971 $64,082 $67,823 Median Household Income $51,504 $45,956 $53,715 Per Capita Income $27,972 $24,551 $25,476 Avg Income Growth 2000-2010 31.44% 43.93% 41.90% Avg Income Growth 2019-2024 14.34% 13.12% 12.37% Households: 2019 Households 601 4,430 8,145 Average Household Size 2.47 2.55 2.64 Hhld Growth 2000-2010 17.81% 5.42% 4.43% Hhld Growth 2019-2024 -1.42% 2.51% 4.80% Housing Units: 2019 Occupied Units 601 4,430 8,145 % Occupied Units 73.25% 79.08% 80.97% % Vacant Housing Units 26.75% 20.92% 19.03% Owner Occ Housing Growth 2000-2010 -10.01% 4.84% 5.93% Owner Occ Housing Growth 2000-2024 -11.13% 13.72% 19.61% Owner Occ Housing Growth 2019-2024 -1.61% 2.50% 4.56% Occ Housing Growth 2000-2010 17.81% 5.42% 4.43% Occ Housing Growth 2010-2024 -0.15% 8.81% 14.60% Occ Housing Growth 2019-2024 -1.42% 2.51% 4.80% Race and Ethnicity: 2019 % American Indian or Alaska Native Population 1.34% 0.99% 0.96% % Asian Population 0.84% 1.11% 1.58%

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Approved by the Texas Real Estate Commission for Voluntary Use Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords. Information About Brokerage Services Before working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner’s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer’s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly. IF THE BROKER REPRESENTS THE OWNER: The broker becomes the owner’s agent by entering into an agreement with the owner, usually through a written - listing agreement, or by agreeing to act as a subagent by accepting an offer of subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner’s agent anything the buyer would not want the owner to know because an owner’s agent must disclose to the owner any material information known to the agent. IF THE BROKER REPRESENTS THE BUYER: The broker becomes the buyer’s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer’s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer’s agent anything the owner would not want the buyer to know because a buyer’s agent must disclose to the buyer any material information known to the agent. IF THE BROKER ACTS AS AN INTERMEDIARY: A broker may act as an intermediary between the parties if the broker complies with The Texas Real Estate License Act. The broker must obtain the written consent of each party to the transaction to act as an intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermediary in a transaction: (1) shall treat all parties honestly; (2) may not disclose that the owner will accept a price less that the asking price unless authorized in writing to do so by the owner; (3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and (4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property. With the parties’ consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party. If you choose to have a broker represent you, you should enter into a written agreement with the broker that clearly establishes the broker’s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding.

Texas Real Estate Brokers and Salespersons are licensed and regulated by the Texas Real Estate Commission (TREC). If you have a question or complaint regarding a real estate licensee, you should contact TREC at P.O. Box 12188, Austin, Texas 78711-2188 , 512-936-3000 (http://www.trec.texas.gov)

The Silver Group • Phone: (415) 461 - 0600