5801 Babcock Road, San Antonio, Texas

Home , Downtown San Antonio, IHeartMedia, NuStar Energy

actual location

net lease property group ALL VACUUM BABCOCK SOCIAL PUB

BABCOCK ROAD: 24,000 VPD

HUEBNER ROAD: 31,000 VPD table of contents

4 Executive summary 5 property description 6 investment highlights 7 aerials & Site plan 10 lease summary 11 surrounding uses 12 tenant overview 13 area overview investment contacts Chris bosworth will pike brian pfohl Matt mountjoy leah lindell chris cozby Vice Chairman Vice Chairman Senior Vice President Capital Markets Manager Capital Markets Analyst CBRE TX Licensee +1 404 923 1486 +1 404 923 1381 +1 404 504 7893 +1 404 504 5939 +1 404 812 5136 [email protected] [email protected] [email protected] [email protected] [email protected] [email protected]

3 actual location executive summary

The CBRE Net Lease Property Group is pleased to exclusively offer for sale the 4,178-square- foot Chase Bank situated on 0.80 acres in San Antonio, Texas (MSA Population: 2.5 Million)— the third-largest metropolitan area in Texas, behind Dallas and Houston. Built in 2008, Chase Bank’s NNN ground lease features ±9 years of primary term remaining with 10% rent increases every 5 years throughout the initial term and in each of the four 5-year renewal options. $3,630,000 5.00% $181,500 The property is positioned with excellent access and visibility on a hard corner at the signalized price cap rate NOI intersection of Babcock Road (24,000 VPD) and Huebner Road (31,000 VPD), where it is less than 10 miles from downtown San Antonio. The site is strategically located as an outparcel to an LA-Fitness-anchored shopping center that is further occupied by Dollar Tree, Chick-fil-A, Firehouse Subs, Little Caesars Pizza, Bill Miller Bar-B-Q, Sprint, Farmers Insurance, Prompt Urgent Care, Babcock Social Pub and Camacho’s Mexican, to name a few. Chase Bank is also just 2 miles from the USAA Corporate Office—one of San Antonio’s Fortune 500 companies which employs 18,305 individuals. Chase Bank benefits from its position within one of San Antonio’s primary retail and commercial corridors with 10.7 MSF of retail, 16.3 MSF of office, 2.7 MSF of industrial and 38,668 multifamily units within a 3-mile radius. National tenants within the immediate vicinity include H-E-B Grocery, CVS, Starbucks, T-Mobile, Advance Auto Parts, Valvoline Instant Oil Change, AutoZone Auto Parts, Anytime Fitness, O’Reilly Auto Parts, Firestone Complete Auto Care, UPS, Family Dollar, Jack in the Box, Subway, Cricket Wireless and Great Clips, among others. The site is located on the perimeter of the South Texas Medical Center (STMC)—an expanse of 900 acres that consists of 75 medical-related institutions, over 45 clinics, 12 major hospitals, 1 higher education institution and an abundance of small practices. The STMC serves 38 counties, employs over 30,000 individuals and completes 5.7 million patient visits a year. Proximity to San Antonio’s world-renowned healthcare hub provides Chase Bank with a substantial built-in customer base as patients seek the STMC’s state-of-the-art healthcare services from all over South Texas and beyond. The property further benefits from infill demographics with a population of 139,200 and an average household income of $64,195 within a 3-mile radius.

demographics 1 mile 3 mile 5 mile Population 17,526 139,200 354,580 AHI $61,172 $64,195 $70,903

4 property description

5801 babcock road, san antonio, tx 78240 address

4,178 sf 0.80 acres $41.5M building size land area deposits

2008 28 spaces bexar county, tx year built parking county

babcock road: 10.7 MSF Retail 3 banking lanes 24,000 vpd 16.3 msf office & 1 atm lane traffic counts 2.7 msf industrial drive-thru lanes commercial base (3 miles)

5 investment highlights

Investment-Grade Tenant JPMorgan Chase & Co. (NYSE: JPM; S&P: A-) is a retail banking, investment banking and global securities firm headquartered in New York City. Their retail financial services and commercial banking divisions are headquartered in Chicago, Illinois. As of December 31, 2019, JPMorgan Chase has assets of $2.7 trillion, operates in more than 100 countries, employs over 250,000 global employees and is a component of the Dow Jones Industrial Average. The company reported 2019 net income of approximately $36.4 billion and 2019 net revenues of $116.5 billion.

NNN ground Lease Built in 2008, Chase Bank’s NNN ground lease features ±9 years of primary term remaining with 10% rent increases every 5 years throughout the initial term and in each of the four 5-year renewal options.

record corporate earnings JPMorgan Chase’s 2019 earnings of $36.4 billion were the best of any bank in U.S. history.

Excellent Access & Visibility The property is positioned with excellent access and visibility on a hard corner at the signalized intersection of Babcock Road (24,000 VPD) and Huebner Road (31,000 VPD), where it is less than 10 miles from downtown San Antonio.

Strategic location The site is strategically located as an outparcel to an LA-Fitness-anchored shopping center that is further occupied by Dollar Tree, Chick-fil-A, Firehouse Subs, Little Caesars Pizza, Bill Miller Bar-B-Q, Sprint, Farmers Insurance, Prompt Urgent Care, Babcock Social Pub and Camacho’s Mexican, to name a few. Chase Bank is also just 2 miles from the USAA Corporate Office—one of San Antonio’s Fortune 500 companies which employs 18,305 individuals.

Strong deposits Strong deposits in excess of $41.5 million.

primary RETAIL & COMMERCIAL CORRIDOR Chase Bank benefits from its position within one of San Antonio’s primary retail and commercial corridors with 10.7 MSF of retail, 16.3 MSF of office, 2.7 MSF of industrial and 38,668 multifamily units within a 3-mile radius. National tenants within the immediate vicinity include H-E-B Grocery, CVS, Starbucks, T-Mobile, Advance Auto Parts, Valvoline Instant Oil Change, AutoZone Auto Parts, Anytime Fitness, O’Reilly Auto Parts, Firestone Complete Auto Care, UPS, Family Dollar, Jack in the Box, Subway, Cricket Wireless and Great Clips, among others.

substantial built-in customer base Proximity to San Antonio’s world-renowned healthcare hub provides Chase Bank with a substantial built-in customer base as patients seek the South Texas Medical Center’s (STMC) state- of-the-art healthcare services from all over South Texas and beyond. The STMC (an expanse of 900 acres) serves 38 counties, employs over 30,000 individuals and completes 5.7 million patient visits a year.

infill demographics The area benefits from dynamic demographics with a 3-mile population of 139,200 and average household income of $64,195.

san antonio msa advantage The San Antonio Metropolitan Statistical Area (MSA Population: 2.5 Million) consists of eight counties and is positioned on the southwestern corner of the Texas Triangle—an urban megaregion that is connected by Interstates 10, 45 and 35. San Antonio is 78 miles south of Austin, 196 miles west of Houston and 273 miles south of Dallas. The agriculture/mining sector was responsible for 21% of the GDP structure in 2018, followed by finance/real estate at 15% and government at 14%. Though mining takes the lead, the area still benefits from economic diversity across its government, wholesale/retail, business, education/health and manufacturing sectors. San Antonio is home to the headquarters of six Fortune 500 companies: Valero Energy, Andeavor, USAA, iHeartMedia, NuStar Energy and CST Brands, Inc. H-E-B Food Stores is also headquartered in San Antonio and was #12 on Forbes’ 2019 list of “America’s Largest Private Companies.” 6 aerial 1

SIENNA RIDGE APARTMENTS 141 UNITS Z SPA ALL VACUUM BABCOCK SOCIAL PUB

BABCOCK ROAD: 24,000 VPD

MACHO LIBRE

AUTO GLASS HONCHO’S

HUEBNER ROAD: 31,000 VPD

7 aerial 2

THE RETREAT AT MEDICAL CENTER 139 UNITS

AUTO GLASS THE CLIFFS OF WHITBY FIREWHEEL HONCHO’S 276 UNITS APARTMENTS SIENNA RIDGE Z SPA 366 UNITS APARTMENTS 141 UNITS MCOA OPTICAL SALON MACHO LIBRE RIOS BARBACOA ALL VACUUM BABCOCK SOCIAL PUB WHITBY ROAD

BABES OLD BABCOCK ROAD: 24,000 VPD FASHIONED ATRIUM COMMONS FOOD 254 UNITS HUEBNER ROAD: 31,000 VPD

STAR CENTRAL TRANSMISSIONS MIXED USE PHO SURE BABCOCK BAR

SYNC AT ARDEN PARK APARTMENTS 300 UNITS BAYEH AUTO SALES

FIRST CHOICE AUTO CENTER

8 HUEBNER ROAD: 31,000 VPD

BABCOCK ROAD: 24,000 VPD

9 lease summary

tenant: JPMorgan Chase Bank, N.A. (S&P: A-)

lease commencement: December 2, 2008

lease expiration: December 31, 2028

initial lease term: 20 years

lease term remaining: ±9 years

lease type: NNN Ground Lease

Years 11-15: $181,500 current term rent: Years 16-20: $199,650

rent escalations: 10% every 5 years

remaining options: Four 5-year options

option rent increases: 10% in each option

Tenant will pay all Impositions as and when they become due. “Impositions” include all taxes, assessments, use and occupancy taxes, water and sewer charges, taxes: rates and rents, charges for public utilities, excises, levies, license and permit fees and other charges by any public authority, which shall or may be assessed, levied, charged, confirmed or imposed by any public authority during the Original Term and any applicable Renewal Term.

Tenant Insurance: Tenant shall maintain during this Lease (i) commercial general liability insurance, including contractual liability, with limits of not less than $2,000,000 per occurrence for bodily injury, personal injury and property damage, naming Landlord and its agent as additional insureds and (ii) all-risk property damage insurance, including plate glass and builder’s risk insurance, covering Tenant’s personal property and all Tenant improvements on a full replacement cost basis. insurance: Landlord Insurance: Landlord shall maintain during this Lease (i) commercial general liability insurance with limits of not less than $2,000,000 per occurrence for bodily injury, personal injury and property damage and (ii) all-risk property insurance covering loss or damage to all real and personal property except for that property which Tenant is obligated to insure. Tenant shall be responsible, at its sole cost and expense, for obtaining, connecting, installing, repairing and maintaining all utility lines, connections and facilities on repairs & maintenance: the Premises. Tenant shall take good care of the Premises, make all repairs thereto, interior and exterior, structural and nonstructural, ordinary and extraordinary, foreseen and unforeseen and shall maintain and keep the Premises, sidewalks and curbs located within the Premises in good order, repair and condition at all times.

10 surrounding uses

H-E-B Grocery la fitness

dollar tree chick-fil-a 11 tenant overview

JPMorgan Chase & Co. (NYSE: JPM; S&P: A-) is a retail banking, investment banking and business segments global securities firm headquartered in New York City. Their retail financial services and commercial banking divisions are headquartered in Chicago, Illinois. In 2008, JPMorgan Consumer & community banking corporate & investment banking Chase & Co. acquired The Bear Stearns Companies Inc. and Washington Mutual’s banking operations. The Washington Mutual acquisition expanded Chase’s consumer branch network in the west and created one of the nation’s largest branch networks with over 4,949 locations commercial banking asset & wealth management in 32 states. As of December 31, 2019, JPMorgan Chase has assets of $2.7 trillion, operates in more than 100 countries, employs over 250,000 global employees and is a component of the Dow Jones Industrial Average. JPMorgan Chase currently has a net worth in excess of $264.3 billion and is considered one of the nation’s “Big Four” Banks along with Wells Fargo, Bank of America and Citigroup. The company reported 2019 net income of approximately $36.4 billion and 2019 net revenues of $116.5 billion. This Lease is guaranteed by JPMorgan Chase Bank N.A. (S&P: A-), which is the U.S. consumer and commercial banking subsidiary of JPMorgan Chase & Co.

company JPMorgan Chase & Co.

$116.5 Billion 2019 net revenues* tallest planned 2019 net income* $36.4 Billion demolition in history JPMorgan chase plans to demolish total assets* $2.7 Trillion its current headquarters at 270 Park Avenue to build a new 70-story tower number of U.s. branches 4,949 as an effort to better accommodate the company’s increasing number of ATMs 16,000+ employees. Once complete in 2024, the 2.5 MSF tower will be one of the Employees 250,000+ tallest buildings in NYC and among the largest office buildings in the northern 2019 FOrtune ranking #18 hemisphere. *Financials as of December 31, 2019 The Architect’s Newspaper, 2019 jpmorgan chase headquarters at 270 park avenue 12 area overview san antonio, tx msa The San Antonio Metropolitan Statistical Area (MSA Population: 2.5 Million) consists of eight counties and is positioned on the southwestern corner of the Texas Triangle—an urban megaregion that is connected by Interstates 10, 45 and 35. San Antonio is 78 miles south of Austin, 196 miles west of Houston and 273 miles south of Dallas. economy The Greater San Antonio economy continues to advance steadily due to growing demographics, manufacturing and its energy sector. According to Oxford Economics, the region will experience annual GDP growth of 2.6% until 2023, surpassing Austin, Dallas and Houston. The economy’s strong performance is anchored by the presence of energy firms that are based in the area. The agriculture/mining sector was responsible for 21% of the GDP structure in 2018, followed by finance/real estate at 15% and government at 14%. Though mining takes the lead, the area still benefits from economic diversity across its government, wholesale/retail, business, education/health and manufacturing sectors. San Antonio is home to the headquarters of six Fortune 500 companies: Valero Energy, Andeavor, USAA, iHeartMedia, NuStar Energy and CST Brands, Inc. H-E-B Food Stores is also headquartered in San Antonio and was #12 on Forbes’ 2019 list of “America’s Largest Private Companies.” San Antonio welcomes nearly 37 million visitors a year, resulting in an economic impact of over $15 billion. Travel supports more than 140,000 jobs and contributes over $213 million in taxes and fees to the City of San Antonio.

TOP EMPLOYERS NUMBER OF EMPLOYEES

Joint Base San Antonio 64,967

H-E-B Food Stores 22,000

USAA 18,305

Northside Independent School District 13,977

City of San Antonio 11,923

Methodist Health Care System 9,620

North East Independent School District 8,789

San Antonio Independent School District 6,631

Baptist Health Systems 6,383

Wells Fargo 5,152 san antonio, tx

Source: City of San Antonio, Texas Comprehensive Annual Financial Report, 2018 13 area overview energy San Antonio is home to CPS Energy—the largest municipally-owned gas and electric utility company within the United States. San Antonio has made renewable energy one of their top priorities and has established a solar manufacturing and clean energy technology hub within San Antonio, thanks to CPS Energy. The company introduced the New Energy Economy—an approach to incorporate a low or non-carbon energy source while leveraging economic development (Source: San Antonio Economic Development Foundation). As a result, CPS Energy was ranked #7 in the nation and #1 in Texas for installed solar power. San Antonio also leads the nation in green research technology and is home the Texas Sustainable Energy Research Institute at the University of Texas at San Antonio and the Southwest Research Institute. healthcare/biosciences San Antonio is also a hub for biosciences and healthcare with 1 out of every 6 San Antonio residents employed in the industry. The healthcare/biosciences industry has a $30.6 billion annual impact on the local economy, employs 164,537 individuals and has a $7.6 billion annual payroll. South Texas Medical Center (STMC) is an expanse of 900 acres that consists of 75 medical-related institutions, over 45 clinics, 12 major hospitals, 1 higher education institution and an abundance of small practices. The STMC serves 38 counties, employs over 30,000 individuals and completes 5.7 million patient visits a year.

south texas medical center 14 Affiliated Business Disclosure CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgement of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).

Confidentiality Agreement Your receipt of this Memorandum constitutes your acknowledgement that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc. If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.

Disclaimer This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.

investment contacts Chris bosworth will pike brian pfohl Matt mountjoy leah lindell chris cozby Vice Chairman Vice Chairman Senior Vice President Capital Markets Manager Capital Markets Analyst CBRE TX Licensee +1 404 923 1486 +1 404 923 1381 +1 404 504 7893 +1 404 504 5939 +1 404 812 5136 [email protected] [email protected] [email protected] [email protected] [email protected] [email protected]