Usps Alamo Heights New 15-Year Absolute Net Ground Lease (2020 Construction) United States Postal Service Guarantee

REPRESENTATIVE PHOTO

NOR USPS ALAMO HEIGHTS NEW 15-YEAR ABSOLUTE NET GROUND LEASE (2020 CONSTRUCTION) UNITED STATES POSTAL SERVICE GUARANTEE

SAN ANTONIO, TX REPRESENTATIVE PHOTO

Contact the team

RICK SANNER [email protected] PH: 415.274.2709 CA DRE# 01440360

IN CONJUNCTION WITH TX LICENSED BROKER: Peter Ellis PH: 210.325.7578 [email protected]

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 2 Investment Summary

SUBJECT PROPERTY - UNDER CONSTRUCTION USPS - ALAMO HEIGHTS 1107 AUSTIN HIGHWAY, SAN ANTONIO, TX 78209

$2,824,000 4.25% PRICE CAP

NOI: $120,000 LEASE TYPE: GROUND LEASE LEASE TERM: 15 YEARS LEASABLE AREA: 33,192 SF BUILDING AREA: 5,741 SF YEAR BUILT: 2020

ABSOLUTE NET 15-YEAR LEASE UNITED STATES POSTAL SERVICE GUARANTEE

THE OFFERING HIGHLIGHTS The subject property is a brand new 15-year absolute net ground • New Construction – Relocation facility lease to the United States Postal Service. The lease features zero • 15-year absolute net ground lease landlord maintenance or expense responsibilities, a 10% bump in • Guaranteed by the United States Postal Service year 11, as well as six 5-year renewal options. The 5,741 square foot • Over 838 million retail customer visits recorded in 2018 building is located on a 33,192 square foot parcel and features 36 (USPS) parking spaces on site, as well as, an additional 8 spaces off-site. • Essential to the U.S. Economy – (40% of the world’s mail) The lease is guaranteed by the USPS, which services 40% of the world’s mail with an operating revenue in excess of $70 billion. DESIRABLE LOCATION Located on the northeast side of San Antonio and just 6 miles from • Prime real estate in the trophy Alamo Heights downtown, Alamo Heights is one of San Antonio’s most affluent neighborhood communities with average incomes reaching over $124,000. Alamo • Fronts Austin Highway – 6 miles from downtown San Heights is centrally located and highly connected to the main Antonio industries in San Antonio. Fronting Austin Highway the parcel • Main arterial - Nearby tenants include Walmart, Lowe’s features easy ingress and egress points making it ideal for a post and Target office. The area has a diverse housing selection and is surrounded by • High Average Incomes over $124,000 in a 1-mile radius residences ranging from luxury apartments complexes to expansive mansions. Austin Highway is the major retail corridor within the area and features nearby national brands such as Walmart, Target and This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer 4 HEB. must verify the information and bears all risk for any inaccuracies. REPRESENTATIVE PHOTO Income & Expense

PRICE $2,824,000 Capitalization Rate: 4.25% Total Rentable Area (SF)1 33,192 STABILIZED INCOME PER SQUARE FOOT Scheduled Rent $3.62 $120,000 Effective Gross Income $3.62 $120,000 LESS PER SQUARE FOOT Taxes NNN $0.00 Insurance NNN $0.00 Total Operating Expenses NNN $0.00 EQUALS NET OPERATING $120,000 1 - The building within the premises is approximately 5,741 square feet.

TENANT INFO LEASE TERMS RENT SUMMARY

CURRENT MONTHLY YEARLY MONTHLY YEARLY TENANT NAME SQ. FT. TERM RENT RENT RENT RENT/FT RENT/FT

USPS1 33,192 09/01/19 08/31/29 $120,000 $10,000 $120,000 $0.30 $3.62

09/01/29 08/31/34 $11,000 $132,000 $0.33 $3.98

Option 1 09/01/34 08/31/39 Market Value

Option 2 09/01/39 08/31/44 Market Value

Option 3 09/01/44 08/31/49 Market Value

Option 4 09/01/49 08/31/54 Market Value

Option 5 09/01/54 08/31/59 Market Value

Option 6 09/01/59 08/31/64 Market Value

TOTALS: 33,192 $120,000 $10,000 $120,000 $0.30 $3.62

FENCING

SIGN

33,192 RENTABLE SF

ENTRANCE FOR APARTMENT COMPLEX

5,741 SIGN BUILDING SF

SIGN 368

368 E MEADOWLAND DRIVE E MEADOWLAND 36 AUSTIN HIGHWAY SPACES

368

AUSTIN HIGHWAY

368

The United States Postal Service is a self-supporting, independent federal agency employing over 634,000 people across the globe. It is the only delivery service that reaches every address in the nation: 155 million residences, businesses and Post Office Boxes. The Postal Service receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations.

Forty-seven percent of the world’s mail volume is handled by the Postal Service. In 2018 the Postal Service had $70.6 billion in operating revenue and $12.7 billion in retail revenue. There are 31,600 Postal Service-managed retail Post Offices in the United States with over 838.7 million retail customer visits recorded in 2018.

RETAIL POST OFFICES 31,600+ IN THE U.S.

$70B+ OPERATING REVENUE

REPRESENTATIVE PHOTO

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and 8 bears all risk for any inaccuracies. Surrounding Retail

THE REPUBLIC AT ALAMO HEIGHTS is a 278-unit luxury apartment complex built in 2014. The complex features studio, one bedroom, two bedroom and three bedroom units with high-end amenities including a 278 6.6 93% resort style pool, fantastic fitness center, and outdoor space including a zen garden. Located directly behind the subject property along Austin APARTMENT ACRE AVERAGE UNITS COMPLEX OCCUPANCY Highway, the complex has an average occupancy rate of 93%. In 2019, RATE the Republic at Alamo Heights had an assessed value of $42.6 million.

FORT SAM HOUSTON

SOUTHWEST PREPARATORY SCHOOL

JENNY’S NAILS & SPA

REGENCY INN

10,507 VPD AUSTIN HIGHWAY

REPUBLIC 368 AT ALAMO HEIGHTS APARTMENTS

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed 11 or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. Retail Aerial

FORT SAM HOUSTON DOWNTOWN SAN ANTONIO AUSTIN HIGHWAY TRANSMISSION THE CASCARON RUB A DUB STORE CAR WASH

PETTY RANCH

ALAMO HEIGHTS SUN MOTEL INDEPENDENT SCHOOL SANDS MOTEL

E MEADOWLANE DRIVE

10,507 VPD

AUSTIN HIGHWAY 368

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed 12 or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 148,539 SAN Zoomed-In Aerial VPD ANTONIO CITY 281 CENTER 368

CHRISTUS ELEMENTARY SANTA ROSA SCHOOL HOSPITAL SCHOOL MIDDLE SCHOOL 23,800 GOLF VPD COURSE

HARRY WURZBACH ROAD WURZBACH HARRY AUSTIN HIGHWAY E BASSE ROAD 33,341 10,507 VPD VPD 281 SCHOOL GOLF COURSE

HIGH SCHOOL

ELEMENTARY SCHOOL ACADEMY

MCNAY 368 ELEMENTARY ART SCHOOL 190,033 BROADWAY STREET BROADWAY MUSEUM VPD 410

CITY OF ALAMO 281 HEIGHTS RITTIMAN ROAD SCHOOL MIDDLE SCHOOL SPORTS COMPLEX 18,113 AUSTIN FORT SAM HIGHWAY HOUSTON VPD JOINT BASE ELEMENTARY SCHOOL

160,853 VPD UNIVERSITY OF THE 82,520 INCARNATE 281 WORD VPD 27,100 410 368 ELEMENTARY VPD OLD BAMC GOLF SCHOOL SPORTS HOSPITAL COURSE COMPLEX STADIUM HARRY WURZBACH ROAD TRINITY UNIVERSITY

GOLF COURSE E HILDEBRAND AVENUE SAN ALAMO ANTONIO STADIUM MILITARY NATURAL MEDICAL HISTORY MUSEUM CENTER

SAN BOTANICAL ANTONIO GARDEN ZOO GOLF 281 COURSE This information has been secured from sources we believe to be reliable but we make no representations 410 13 BROADWAY STREET or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information 368 and bears all risk for any inaccuracies. Zoomed-Out Aerial 35

THE UNIVERSITY OF TEXAS SAN SAN ANTONIO NORTHEAST ANTONIO INT’L LAKEVIEW 10 AIRPORT COLLEGE

190,033 METHODIST HOSPITAL VPD NORTHEAST UNIVERSITY JBSA HOSPITAL RANDOLPH AFB 410 368 410 38,237 AUSTIN 35 SANTA HIGHWAY VPD NORTHWEST ROSA VISTA HOSPITAL TRINITY WESTOVER UNIVERSITY COLLEGE HILLS METHODIST HOSPITAL 10 FORT SAM TEXSAN ST. MARY’S HOUSTON 10 UNIVERSITY SAN JOINT ANTONIO COLLEGE BASE 410 OUR LADY OF 35 THE LAKE 410 257,891 UNIVERSITY 368 VPD UNIVERSITY 35 OF TEXAS ST. PHILLIPS COLLEGE MEDICINE 10

LACKLAND JBSA 10 AFB KELLY FIELD ANNEX 90

190,033 410 VPD 90 35 37

MISSION TRAIL BAPTIST 410 HOSPITAL PALO ALTO COLLEGE 16,820 VPD 410

2,790 37 35 VPD

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed 14 or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. Demographics SAN ANTONIO INTL AIRPORT CASTLE HILLS POPULATION .5-MILE 1-MILES 2-MILES SUBJECT 2010 2,949 12,954 43,163 BALCONES PROPERTY HEIGHTS 2019 3,690 12,527 44,287 FORT SAM 2024 4,022 13,865 47,570 HOUSTON BASE

2019 HH INCOME .5-MILE 1-MILES 2-MILES DOWNTOWN Average $117,673 $124,464 $116,075 SAN ANTONIO Median $67,684 $77,900 $74,161 (6 MILES)

LACKLAND AIR FORCE SAN ANTONIO MSA TOP EMPLOYERS BASE EMPLOYER # OF EMPLOYEES Joint Base San Antonio 80,165

USAA 15,000

H-E-B 14,588 THE AVERAGE HOUSEHOLD Northside School District 12,751 INCOME WITHIN A 1-MILE RADIUS City of San Antonio 9,145 IS OVER $124K

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and 15 bears all risk for any inaccuracies. Alamo Heights Neighborhood

ALAMO HEIGHTS is a premier neighborhood in central San Antonio, featuring great restaurants, top-rated public schools, close proximity to downtown, and countless other amenities. Alamo Heights is its own municipality located just 4.5 miles north of downtown San Antonio. It is surrounded by San Antonio, the seventh largest metropolitan area in the U.S., and is adjacent to the cities of Terrell Hills and Olmos Park. The city encompasses a total area of 2.1 square miles, and has nearly 9,000 residents within its borders. MCNAY ART MUSEUM The affluent neighborhood is known for its tree lined streets and quaint cottage districts. Located along the main stretch of Broadway, Alamo Heights boasts colorful boutiques, upscale eateries and family-friendly attractions including the McNay Art Museum.

With 95.5% of its high school students heading to college after graduation, the Alamo Heights Independent School District routinely wins local and national awards for the quality of its education.

Alamo Heights is easily accessible and close to major amenities such as downtown San Antonio, the San Antonio International Airport, multiple museums, business centers, the San Antonio Zoo and Fort Sam Houston THE QUARRY GOLF COURSE Base.

“TOP 1% OF HIGH SCHOOLS IN THE U.S” – NEWSWEEK

#75 AMERICA’S 100 RICHEST PLACES

TOP INDUSTRIES INCLUDE, BUSINESS/FINANCE MANAGEMENT, AND HEALTHCARE

AVERAGE HOUSEHOLD INCOME OVER $120,000

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or 16 implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. SAN ANTONIO ZOO Location Overview SAN ANTONIO, TEXAS

DOWNTOWN SAN ANTONIO

SAN ANTONIO is seventh most populous city in the U.S., and the ABOUT TOURISM contributes substantially to second most populous city in Texas. Home to numerous historical TOURISM the city’s economy, with over 32 million and cultural sites, including The Alamo; the world famous River tourists visiting every year. Tourism also Walk, and Sea World, among many other attractions. employs 122,500 people and has an annual economic impact of over $13.4 billion on the local The city also has one of the largest concentrations of military economy. The two biggest attractions are the San Antonio bases in the U.S. The defense industry in San Antonio employs River Walk and the Alamo which are located in downtown, over 190,000 and provides a $27.7 billion regional economic surrounded by historical hotels, tourist attractions and impact. San Antonio is home to Fort Sam Houston, Lackland Air souvenir shops. Force Base, Randolph Air Force Base, and Brooks City-Base, with Camp Bullis and Camp Stanley outside the city. These bases 2,473,974 This information has been secured from make up what is known as Joint Base San Antonio (JBSA). JBSA sources we believe to be reliable but we make no representations or warranties, expressed or services more Department of Defense students than any other implied, as to the accuracy of the information. Buyer must verify the information and bears all installation, houses the DoD’s largest hospital, and supports more SAN ANTONIO MSA risk for any inaccuracies. than 250,000 personnel. POPULATION (ESTIMATED) 17 Contact us.

RICK SANNER [email protected] PH: 415.274.2709 CA DRE# 01440360

IN CONJUNCTION WITH TX LICENSED BROKER: Peter Ellis PH: 210.325.7578 [email protected]

CAPITAL PACIFIC COLLABORATES. CLICK HERE TO MEET OUR This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any SAN FRANCISCO TEAM. inaccuracies. 11-2-2015 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.

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 offer to or counter-offer from the client; and  Treat all parties to a real estate transaction honestly and fairly.

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 buyerof 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 (ownerd an 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: ᴑ that the owner will accept a price less than the written asking price; ᴑ that the buyer/tenant will pay a price greater than the price submitted in a written offer; and ᴑ any confidential information or any other information that a party specifically instructs the broker in writing notto 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 License No. Email Phone Primary Assumed Business Name

Designated Broker of Firm License No. Email Phone

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

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