Taco Palenque

SHAYDON WOOD TACO PALENQUE RICK CARDUNER [email protected] [email protected] direct 801.456.8810 13719 I-10 direct 210.402.3500 View Profile GARRETT BLOMQUIST SAN ANTONIO, TX 78249 SAM CARDUNER [email protected] [email protected] direct 801.727.4414 direct 210.402.3500 View Profile TABLE OF CONTENTS

INVESTMENT 4 SUMMARY PROPERTY 5 FEATURES 5 AREA RETAIL 7 TENANT PROFILE 8 DEMOGRAPHICS

TACO PALENQUE 2 Mountain West Commercial | Office 801.456.8800 | www.mtnwest.com TACO PALENQUE CONFIDENTIALITY AND DISCLOSURE

13719 I-10 Mountain West Commercial Real Estate has been retained on an exclusive basis to market the property SAN ANTONIO, TX 78249 described as 13719 I-10, San Antonio, Texas 78249. Broker has been authorized by seller of the property to prepare and distribute the enclosed information for the purpose of soliciting offers to purchase from interested parties. More detailed financial, title and tenant lease information may be made available upon PREPARED BY request following the mutual execution of a letter of intent or contract to purchase between the Seller and the prospective purchaser. You are invited to review this opportunity and make an offer to purchase based upon your analysis. If your offer results in the Seller choosing to open negotiations with you, you will be asked to provide financial references. The eventual purchaser will be chosen based upon an assessment of price, terms, ability to close the transaction and such other matters as the Seller deems appropriate. RICK CARDUNER [email protected] The Material is intended solely for the purpose of soliciting expressions of interest from qualified investors direct 210.402.3500 for the acquisition of the Property. The Material is not to be copied and /or used for any other purpose or made available to any other person without the express written consent of Broker or Seller. The Material SAM CARDUNER does not purport to be all-inclusive or to contain all of the information that a prospective buyer may [email protected] require. The information contained in the material has been obtained from the Seller and other sources direct 210.402.3500 and has not been verified by the Seller or its affiliates, agents, representatives, employees, parents, subsidiaries, members, managers, partners, shareholders, directors, or officers, makes any representation or warranty regarding such pro forma. Purchaser must make its own investigation of the Property and any existing or available financing, and must independently confirm the accuracy of the projections contained in the pro forma.

Seller reserves the right, for any reason, to withdraw the Property from the Market. Seller has no obligation, express or implied, to accept any offer. Further, Seller has no obligation to sell the Property unless and until the Seller executes and delivers a signed agreement of purchase and sale on terms acceptable to the SHAYDON WOOD Seller, in its sole discretion. By submitting an offer, a purchaser will be deemed to have acknowledged the [email protected] foregoing and agreed to release Seller and Broker from any liability with respect thereto. direct 801.456.8810 View Profile Property walk-throughs are to be conducted by appointment only. Contact Broker for additional information. GARRETT BLOMQUIST [email protected] direct 801.727.4414 View Profile

Mountain West Commercial | Office 801.456.8800 | www.mtnwest.com 3 EXECUTIVE SUMMARY & HIGHLIGHTS

PRICING LONG TERM LEASE IN PLACE HIGH PERFORMING LOCATION ON I-10 AND NEAR UNIVERSITY OF TEXAS SAN PURCHASE PRICE $7,103,156 ANTIONIO NET OPERATING INCOME $426,189 This location does nearly double the sales as the national average for this chain CAP RATE 6.00% UNIVERSITY OF TEXAS SAN ANTONIO HAS 35,000+ STUDENTS LEASE INFORMATION NEAR UNIVERSITY VILLAGE 114 Acres master planned community in Northwest San Antonio TENANT TRADE NAME Taco Palenque STRONG DAYTIME POPULATION LEASE GUARANTOR GC Ventures, LLC Valero Corporate Headquarters +/-3,700 employees LEASE TYPE NNN Security Service Federal Credit Union Headquarters +/-1,111 employees USAA Corp HQ – 16,000+ employees COMMENCEMENT 6/9/2016 EXPIRATION 6/30/2036 OPTIONS & ESCALATIONS LEASE TERM 20 Years LEASE MONTHLY ANNUAL % START EXPIRATION RENT/SF RENTAL INCREASES 15% Every 5 Years TERM RENT RENT INCREASE INITIAL 6/1/2021 5/30/2026 $35,515.78 $426,189.36 $74.77 EXTENSION OPTIONS Two, 5-Year TERM TENANT’S FIRST RIGHT OF INITIAL Yes 6/1/2026 5/30/2031 $41,172.52 $494,070.24 $86.68 15.93% REFUSAL TERM INITIAL PROPERTY TAXES Tenant Responsible 6/1/2031 5/30/2036 $47,730.23 $572,762.76 $100.48 15.93% TERM INSURANCE Tenant Responsible OPTION 1 6/1/2036 5/30/2041 $55,332.42 $663,989.04 $116.49 15.93% UTILITES Tenant Responsible OPTION 2 6/1/2041 5/30/2046 $64,147.98 $769,775.77 $135.05 15.93% MAINTENANCE Tenant Responsible

ADDITIONAL PADS AVAILABLE FOR PURCHASE: *Lot 6 - 1.254 Acres Available for BTS/GL/Sale: Call Agents for Pricing *Lot 8 - 1.692 Acres Available for BTS/GL/Sale: Call Agents for Pricing

TACO PALENQUE 4 Mountain West Commercial | Office 801.456.8800 | www.mtnwest.com PROPERTY FEATURES & LAND OVERVIEW

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TACO PALENQUE 6 Mountain West Commercial | Office 801.456.8800 | www.mtnwest.com

BECKWITH BLVD SAN ANTONIO AGENT NAME

TEXAS F:\PROJECTS\SL\WOOD\TACOPALENQUE_TX\CLOSEUP.MXD - 6/17/2020 MLIAPIS ANCHOR TENANT PROFILE

Juan Francisco Ochoa, known as Don Pancho to his friends and family, was in search of an opportunity to bring his love and passion of Mexican cuisine to the United States. This is how the Palenque chain was born. Originally from Sinaloa, Mexico, Don Pancho first founded El Pollo Loco, which was such a success. This led him to open another restaurant, Taco Palenque®, in 1987 in Laredo, Texas. It has become the ultimate location to spend time with family and friends while enjoying a delicious, unforgettable and authentic Mexican food. In fact, positive word-of-mouth has led to new and loyal customers, building on to Don Pancho’s passion for providing unique dishes in a comfortable setting. There are several Taco Palenque® locations operating throughout the southern region of Texas, and the potential for more is strong. However, Don Pancho didn’t stop there; the visionary leader who saw the idea of incorporating Palenque Grill®, an extension of his chain of restaurants with twist of fine dining. He is a friendly and generous man who continues to operate and incorporate new and innovative ideas along with his family. Taco Palenque® cooks over 11 million corn and flour tortillas and serves over 10 million tacos a year! As for the menu, Don Pancho does not serve anything that he himself does not like and this practice has proven to be an advantageous one. If you love tacos, spicy food, true Mexican cuisine or enjoy a family-friendly ambiance, then any of our locations is the place to be. Source: https://www.tacopalenque.com/about-us/

Mountain West Commercial | Office 801.456.8800 | www.mtnwest.com 7 DEMOGRAPHICS

POPULATION BUFFERS - 1, 3, 5 MILES

Cross F 1 MILE 3 MILES 5 MILES M Mountain 2 6

9,069 91,359 257,860 6 2021 EST. 2021 EST. 2021 EST. POPULATION POPULATION POPULATION Grey 5 Miles 1 MILE 3 MILES 5 MILES Forest 11,360 101,462 278,247

2026 EST. 2026 EST. 2026 EST. D

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HOUSEHOLDS & MEDIAN INCOME L ^ O FM 1560 N ^ C D R K A H D L R VA IL A L O Helotes E Z C D S N

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A B R 10 D URZBAC 4,457 37,169 103,865 W H P K W Y 2021 EST. 2021 EST. 2021 EST. San Antonio HOUSEHOLDS HOUSEHOLDS HOUSEHOLDS D R B H C A A E B B B V R C Z A AU O R T N U N S RD C W E K W V M W R I A L D N I C T 1 MILE 3 MILES 5 MILES E A R J Y A H C W $59,039 $72,140 $76,616 K Y GUILBEAU RD S O

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E INCOME INCOME INCOME Z M R E A D JA T I D N AN C L K B S A O N Leon RD 410 N D N K A E E L L R GH E A Valley A R R LL R D A D C F:\Projects\SL\Wood\TacoPalenque_TX\DemoRings.mxd - 4/7/2020 mliapis

TACO PALENQUE 8 Mountain West Commercial | Office 801.456.8800 | www.mtnwest.com GENERAL MARKET OVERVIEW

San Antonio is the 7th highest populated city in the US, and the 2nd highest populated city in Texas and more than 2.5 million residents in the MSA . Only being approximately 150 miles from the border of Mexico, most of the population is of Hispanic descent and many people are bilingual. San Antonio is the state’s oldest city with the municipality being established 302 years ago. Given this heritage the landscape has grown into a flourishing and culturally diverse mix that has many 18th century structures standing amongst the new core developments around the city.

San Antonio has experienced steady economic growth over the past 25 years. Unlike the Houston and Dallas economies that tend to have high peaks followed by downturns, the San Antonio’s diverse economy continues to expand year after year.

Education is a large component of San Antonio’s economy. University of Texas San Antonio was established in 1969 and holds current enrollment of about 33,000 Students. The President of the University has stated the goal for enrollment is to be at 45,000 students by 2028. The school boasts $69.7 Million in research and development expenditures and creates a local economic impact of $1.2 Billion. *

Military installments have been rooted in San Antonio’s rich history and have been the launch of the city’s continued growth since the 1940’s. Historically there have been 4 bases in the San Antonio area Fort Sam Huston, Lackland Air Force Base, Randolph Air Force Base, and Kelly Air Force Base. Kelly AFB was active in San Antonio until 2001 when the airfield was transferred to Lackland Air Force Base. The former base was developed as Port San Antonio, an industrial and business park.

*Statistical information source: https://www.utsa.edu/about/glance/index.html

Mountain West Commercial | Office 801.456.8800 | www.mtnwest.com 9 TACO 11-2-2015 PALENQUE 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: 13719 I-10 .  A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker. SAN ANTONIO, TX 78249  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 PREPARED BY  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 RICK CARDUNER seller’s agent. [email protected] 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 direct 210.402.3500 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. SAM CARDUNER  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; [email protected] ᴑ that the buyer/tenant will pay a price greater than the price submitted in a written offer; and direct 210.402.3500 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.

Carduner Commercial 498582 [email protected] 2104023500 Licensed Broker /Broker Firm Name or License No. Email Phone Primary Assumed Business Name Richard Carduner 349911 [email protected] 2104023500 SHAYDON WOOD Designated Broker of Firm License No. Email Phone [email protected] Richard Carduner 349911 [email protected] 2104023500 Licensed Supervisor of Sales Agent/ License No. Email Phone direct 801.456.8810 Associate View Profile Sam Carduner 679976 [email protected] 2104023500 Sales Agent/Associate’s Name License No. Email Phone

GARRETT BLOMQUIST Buyer/Tenant/Seller/Landlord Initials Date [email protected] Regulated by the Texas Real Estate Commission Information available at www.trec.texas.gov direct 801.727.4414 IABS 1-0 View Profile