VILLAGE GREEN

ALZHEIMER'S CARE $3,107,000 | 6.50% CAP

15-YEAR ABSOLUTE NNN LEASE | 2% ANNUAL INCREASES 13233 Medical Complex Dr., Tomball, TX 77375 (Houston)

SUBJECT PROPERTY CONTACT:

EXCLUSIVE LISTING AGENT Ed Benton Vice President (832) 578-2233 [email protected]

SECURE NET LEASE (“Agent”) has been engaged as an agent for the sale of the property located at 13233 Medical Complex Dr., Tomball, TX by the owner of the Property (“Seller”). The Property is being offered for sale in an “as-is, where-is” condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. The enclosed materials are being provided solely to facilitate the prospective investor’s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Agent nor the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein. Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller. Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller’s obligations hereunder have been satisfied or waived. By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller and Agent.

TABLE OF CONTENTS

SUBJECT PROPERTY

TABLE OF CONTENTS

INVESTMENT OVERVIEW | ELEVATIONS 3

TENANT OVERVIEW | IN THE NEWS 5

LEASE OVERVIEW 7

SITE PLAN | AERIAL PHOTO 9

LOCATION OVERVIEW 11

HOUSTON AREA OVERVIEW 13 INVESTMENT OVERVIEW

PRICE | CAP: $3,107,000 | 6.50% NET OPERATING INCOME: $201,960 BUILDING AREA: 10,000 +/- Square Feet LAND AREA: 1.00 +/- Acres YEAR BUILT: 2018 LANDLORD RESPONSIBILITY: None OCCUPANCY: 100%

INVESTMENT HIGHTLIGHTS

15-YEAR ABS. NNN BRAND NEW CLOSE PROXIMITY AVG. HH INCOME: LEASE CONSTRUCTION TX-249 (43K VPD) $93K 5-MILES

Lease has personal guarantee. The two principals of Village Green Alzheimer's Care Home, LLC personally guaranteed the lease.

15-year absolute NNN lease commenced 9/21/2018. The lease features a 2% annual increase and the tenant is responsible for roof and structure.

Facility is extremely well-located. Village Green is in close proximity to Tomball Regional Medical Center, Kindred Hospital Tomball and Tomball Retirement Home

2019 population is estimated to be 108,400 people in a 5-mile radius. An estimated 38,000 households are located within the same radius.

Property is approximately 33-miles from downtown Houston, TX. Located along Medical Complex Dr. which has direct access to TX-249 (43K).

Village Green Alzheimer's Care has been growing successfully. With a total of 5 facilities, their concept has proven success and they're currently undergoing expansion across the Houston MSA.

National tenants in the immediate vicinity include: HEB, Walmart, Target, Kroger, Lowe's, Kohl's, Jiffy Lube, Discount Tire, Firestone Tire, AutoZone, O'Reilly Auto Parts, Advanced Auto Parts, Chick-fil-A, Whataburger, Starbucks and many more.

3 | Secure Net Lease

TENANT OVERVIEW

VILLAGE GREEN ALZHEIMER'S CARE HOME villagegreenalzheimerscare.com

Our mission at Village Green Alzheimer’s Care Home is to enrich the lives of our residents and bring dignity and respect to their golden years. We will nurture the unique needs of our seniors and promote purposeful meaning to each day in a warm and loving home.

Village Green provides a resident centered memory care program designed to meet the specific and unique needs of those with Alzheimer’s and other memory impairment. Its home provides familiar surroundings that reassure the resident’s sense of safety and promotes purposeful meaning to each day. The modest size of Village Green allows them to have a totally different and personal approach to meeting individual needs.

The environment design of Village Green helps promote a higher quality of life. The design includes secure exterior doorways, increased space for activities both inside and outside the community, beautiful serene courtyard and cozy independent areas. This promotes maximum resident freedom. The décor and layout of the entire community has been designed to calm and soothe our memory care resident. Special attention to color, lighting, texture, furnishings, and other features may help alleviate frustration and confusion for the memory care resident. Memory orientation, such as signage, enhances the resident’s sense of time and location.

This concept is now expanding across the Houston MSA due to its success. Village Green Alzheimer’s Care Home have a total of 5 locations, all in the Houston MSA. The Tomball location is their newest facility with the 4 others located in: Conroe, TX; Kingwood, TX; Spring, TX and Cypress, TX

5 | Secure Net Lease IN THE NEWS

REAL ESTATE MARKET TREND SPOTLIGHT : SENIOR LIVING Source: Carole VanSickle Ellis - (26 Dec 2018)

Although most baby boomers are still about a decade away from hitting the stage in their lives when they will be seriously considering their options in senior living, the real estate sector is getting ready now. From active adult communities to co-living spaces for seniors who need non-skilled care (not what it sounds like) to memory care and full-service skilled-care facilities, the housing and construction markets are evolving to meet the current and pending needs of the largest population of seniors ever to age into the demographic at one time.

Clearly, senior living is a real estate topic worth talking about, but what does the term really mean? Once you push through the promotional verbiage, such as “Senior living is about LIVING! Healthy living, comfortable living enjoyable living like you will find at [insert development name here],” you will find that real estate investors and senior-living and -care providers use the term to describe pretty much any physical structure designed with a resident 55 years or older in mind. In order to really discuss the topic, we must establish some common terminology. You will see some of this terminology defined in association with our expert’s commentary in this analysis. The Senior Living Sector is Expanding

As you can see just from the plethora of terms in use today to talk about senior living, this sector is expanding. With Pew Research estimating 10,000 baby boomers will turn 65 each day until 2029, when about one in five U.S. residents will likely be an official senior citizen, the demand for senior living facilities with offerings across the spectrum will only grow. Check out what experts in all areas of the real estate industry are saying about this incredible, unstoppable trend… STEPHEN ROSENBERG – Founder & CEO, Greystone & Co, Commercial HUD Lender

On Acquisitions in Skilled Nursing:

“We’re currently seeing a surge in acquisitions activity within the middle-market of skilled nursing. After several years of large, national REITs owning in the space and smaller (or non-profit) players struggling to scale their operations effectively, there is now an opportunity for mid-sized players to take over. The skilled nursing sector is highly regulated from state-to-state, so regional owners with a reputation for operational excellence will ultimately succeed.

“We are one of the largest providers of funding and financing to nursing homes and skilled nursing facilities, but not everyone knows we also own and operate about 4,000 beds.”

CLICK HERE TO VIEW MORE

Secure Net Lease | 6 LEASE SUMMARY

Primary Lease Term: 15-Years Options: Three, Five Year Periods Rent Commencement: September 2018 Lease Expiration: September 2033 Lease Type: Absolute NNN Taxes: Tenant Responsibility Insurance: Tenant Responsibility Common Area Maintenance: Tenant Responsibility Roof, Structure, Parking Lot: Tenant Responsibility Rent Increases: 2% Annually Annual Rent Year 1: $198,000 Annual Rent Year 2 (Current Rent): $201,960 Annual Rent Year 3: $205,999 Annual Rent Year 4: $210,119 Annual Rent Year 5: $214,321 Annual Rent Year 6: $218,607 Annual Rent Year 7: $222,980 Annual Rent Year 8: $227,439 Annual Rent Year 9: $231,988 Annual Rent Year 10: $236,628 Annual Rent Year 11: $241,360 Annual Rent Year 12: $246,188 Annual Rent Year 13: $251,111 Annual Rent Year 14: $256,134 Annual Rent Year 15: $261,256 Option Period 1 | Yr 16-20: 2% Annual Increase Option Period 2 | Yr 21-25: 2% Annual Increase Option Period 3 | Yr 26-30: 2% Annual Increase

Rent schedule above is estimated based on 2% annual increases. Actual annual amounts may vary.

7 | Secure Net Lease SUBJECT PROPERTY SITE PLAN

22 +/- PARKING SPOTS 10,000 +/- SQ. FT. 1.00 +/- ACRES

9 | Secure Net Lease RESOURCES LOCATION OVERVIEW

DEMOGRAPHICS 1-MILE 3-MILES 5-MILE

EST. POPULATION (2019) 5,300 24,500 108,400 PROJ. POPULATION (2024) 5,400 25,000 111,900 EST. AVG. HH INCOME (2019) $53,800 $79,100 $93,900 PROJ. AVG. HH INCOME (2024) $60,300 $88,800 $104,400

ECONOMIC DRIVERS Click here for google map link

COMPANY (EMPLOYEES)

Hewlett Packard (10,000) Willie's Grill & Icehouse (1,100)

Tomball ISD (1,500) St. Luke's Health Baylor College of Medicine (1,000)

SBM Site Services LLC (1,500) A 3 H Foods, LP (999)

The Methodist Hospital (1,400) Cypress Fairbanks Medical Center (850)

Tomball Regional Medical Center (1,300) CVS Health Corporation (745)

The Millard Group (1,200) Champion Window, Inc. (700)

Lone Star College - Tomball (1,100) Baker Hughes (700)

Fidelity National Information Services, Inc (1,100) Intergraph Corporation (600)

RTI Energy Systems, Inc. (1,100) National Processing Company (546)

11 | Secure Net Lease IMMEDIATE TRADE AREA

TOMBALL, TEXAS Village Green Alzheimer’s Care Home is strategically located along Medical Complex Dr. in Tomball, TX. Medical Complex Dr. is an east-west medical corridor providing access to TX-249 (44,531 VPD), Kindred Hospital, a 75-bed specialty hospital, and Tomball Regional Medical Center, a 357-bed full service hospital that includes over 1,300 employees. The immediate trade area features strong demographics such as a population of 108,400 people and average household incomes of $93,900 in a 5-mile radius. Additionally, located in Tomball is the Hewlett Packard Enterprise Corporate Campus, which features seven separate buildings and approximately 10,000 employees. The subject property is located approximately 33-miles from downtown Houston, TX. Tomball is located 40-miles northwest of Houston in Harris County, Texas, and is part of the Houston . The city’s population was 11,707 at the 2017 census estimate. Tomball is primarily served by FM 2920 east to west and State Highway 249 north to south. David Maybe Hooks Memorial Airport, a general aviation airport, is located outside of the Tomball city limits in northwest Harris County. The city of Tomball is serviced by the Tomball Independent School District. The district contains 8 elementary schools, 4 intermediate schools, 2 junior high schools, and 2 high schools.

Tomball Regional Hospital - Tomball, TX

Secure Net Lease | 12 HOUSTON, TX AREA

HOUSTON

Houston is the most populous city in Texas, as well as the 4th most populous city in the U.S. With an estimated 2018 population of 2,325,502. Located in Southeast Texas near Galveston Bay and the Gulf of Mexico, it is the seat of Harris County and principal city of the metropolitan area, which is the 5th most populous metropolitan statistical area in the U.S. Houston’s economy since the late 20th century has a broad industrial base in energy, manufacturing, aeronautics, and transportation. Leading in healthcare sectors and building oilfield equipment, Houston has the second most Fortune 500 headquarters of any U.S. municipality within its city limits (after New York City). 13 | Secure Net Lease GREATER HOUSTON MSA the Texas Medical Center—the largest medical center in the world—several universities (including The Houston-The Woodlands-Sugar Land Rice University, Texas Southern University, and The Metropolitan Statistical Area (MSA), colloquially University of Houston), and two of the largest known as Greater Houston, is the 5th largest in the systems of higher learning in the U.S. (The Houston U.S. with a population of 6,997,384 as of 2018. and Lone Star Community College systems). The Houston is the most diverse metropolitan area in University of Houston’s annual impact on the Texas and has been described as the most racially Houston-area’s economy alone equates to that of a and ethnically diverse major metropolis in the U.S. It major corporation: $1.1 billion in new funds attracted is home to many cultural institutions and exhibits, annually to the Houston area, $3.13 billion in total which attract more than 7 million visitors a year to economic benefit, and 24,000 local jobs generated. the Museum District.

CNN/Money and Money Magazine have recognized 5 cities in the Greater Houston area the past 3-years as part of its 100 Best Places to Live in the U.S. From 2000 to 2030, the metropolitan area is projected by Woods & Poole Economics to rank 5th in the nation in population growth—adding 2.66 million people. Houston has historically been among the fastest- growing metropolitan areas in the U.S.; it was the fastest-growing in absolute terms during the 2013– 2014 census year, adding 156,371 people. The area grew 25.2% between 1990 and 2000—adding more Galveston Bay and the Buffalo Bayou together form than 950,000 people—while the nation’s population one of the most important shipping hubs in the increased only 13.2% over the same period, and from world, and the Port of Houston, the Port of Texas 2000 to 2007 alone, the area added over 910,000 City, and the Port of Galveston are all major seaports people. The Greater Houston Partnership projects located in Greater Houston. The Port of the metropolitan area will add between 4.1 and 8.3 Houston ranks 1st in the U.S. in international million new residents between 2010 and 2050. waterborne tonnage handled and 2nd in total cargo Greater Houston has the 7th-highest metropolitan- tonnage handled. The area is one of the leading area gross domestic product in the U.S., valued at centers of the energy industry, particularly petroleum $490 billion in 2017. A major trade center anchored processing, and many companies have large by the Port of Houston, Houston MSA has the 2nd- operations in this region. The MSA comprises the highest trade export value of all MSAs, at over $84 largest petrochemical manufacturing area in the billion in 2016, accounting for 42% of the total world, including for synthetic rubber, insecticides, exports of Texas. Metropolitan Houston is home to and fertilizers. Much of metro area’s success as a the headquarters of 21 Fortune 500 companies, petrochemical complex is enabled by the Houston ranking 4th among all MSAs. Only 26 nations other Ship Channel. The area is also the world’s leading than the U.S. have a GDP exceeding the Greater center for building oilfield equipment, and is a major Houston GMP. Mining, which in Houston is almost center of biomedical research, aeronautics, and high- entirely oil and gas exploration and production, technology. accounts for 11 percent of Greater Houston’s GMP.

Houston has become a global city, with strengths in culture, medicine, and research. Houston is home to

Secure Net Lease | 14 WE LOOK FORWARD TO HEARING FROM YOU!

DALLAS OFFICE 3100 Monticello Avenue Suite 220 Dallas, TX 75205 (214) 522-7200

LOS ANGELES OFFICE 123 Nevada Street El Segundo, CA 90245 (424) 220-6430

securenetlease.com TEXAS DISCLAIMER

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: shall treat all parties honestly; may not disclose that the owner will accept a price less than the asking price submitted in a written offer unless authorized in writing to do so by the owner; 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 may not disclose any confidential information or any information that a part 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.