Academy Sports Baytown TX-Exclusive.Indd

File Photograph

Academy Sports + Outdoors HOUSTON SUBURB (BAYTOWN)

• 20-Year Net Lease with Increases • Proﬁ table, Long-Established, Multi-Billion Dollar Tenant • Adjacent to 1.2 Million Square Foot Regional Mall • One of the Fastest Growing Metro Areas in the U.S.

For more information, please contact: In Association with: Robert C. Sanner Richard M. Sanner Bret Bunnett Partner/Broker Senior Associate Regional Managing Principal 415-677-0439 415-677-0429 Texas Licensee [email protected] [email protected] # 3128590 LIC #00869657 LIC # 01792433 www.ctbtnnn.com

The information contained herein has been given to us by the owner of the property or other sources we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it. All information should be veriﬁ ed prior to purchase or lease. Academy Sports + Outdoors Baytown, Texas

LOCATION Southwest corner of Garth Road and Hunt Road, Baytown, Texas. Twenty-three miles east of downtown Houston, in the Houston MSA. Just south of Interstate 10.

LOT SIZE Approximately 7.37 acres – 321,037+/- square feet

IMPROVEMENTS Under construction, to be completed in September 2011, a 75,686+/- square foot retail building for ACADEMY SPORTS + OUTDOORS.

LEASE Leased to ACADEMY, LTD., d.b.a. ACADEMY SPORTS + OUTDOORS for 20 years from October 2011 until October 2031. The annual rent of $677,389 increases by $0.50/psf every ﬁ ve years during the primary term. The tenant is responsible for insurance, taxes, and all normal maintenance, including maintenance of the roof. The landlord is responsible for structure, including maintenance and repair of the structural elements of the roof. The landlord is responsible for roof replacement. There are four 5-year options to renew under the same terms and conditions as the primary term.

ANNUAL INCOME YEARS ANNUAL RENT 1-5 $677,389 6-10 $715,232 11-15 $753,075 16-20 $790,918 Option 1 $828,761 Option 2 $866,604 Option 3 $904,447 Option 4 $942,290

PRICE Unpriced

RENT PER SQUARE FOOT $8.95 net per year – $0.75 net per month

RCS:dkw:0611:15 The information contained herein has been given to us by the owner of the property or other sources we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it. All information should be veriﬁ ed prior to purchase or lease. Academy Sports + Outdoors Baytown, Texas

ABOUT THE TENANT ACADEMY, LTD. (the “Company”), founded in 1938 and headquartered in a suburb of Houston, is estimated to be the third-largest full-line sporting goods retailer in the United States by sales. The Company is a leading sporting goods, lifestyle and leisure retailer in the southeastern United States and one of the largest family- owned businesses in Texas. As of April 2011, the Company operated 129 retail locations.

The Company offers a broad merchandise assortment across four product categories: Field & Stream, Sports & Leisure, Footwear and Apparel. Academy’s product mix extends well beyond assortments offered by traditional sporting goods retailers. The Company’s comprehensive product offering is designed to address the needs of the Academy customer who shops the store frequently for both staple and discretionary items. The Company tailors each store’s product assortment to the market it serves.

According to a story in a local Houston newspaper, Academy had sales in 2009 of $2.4+ billion and sales in 2010 of $2.7+ billion.

On May 31, it was announced that Academy was to be sold to the private equity ﬁ rm of KKR. If consummated, the sale would occur by the end of July, 2011. The terms were not disclosed.

More information is available on the company’s website, www.academy.com

SITE INFORMATION The property is located on Garth Road, a major north/south arterial in Baytown, which connects with Interstate 10 just 0.5 mile north of the subject property. This section of Garth is heavily traveled and sees approximately 82,000 cars per day at the intersection of Interstate 10 and Garth Road. Additionally trafﬁ c counts exceed 24,500 cars per day at Garth and Cedar Bayou Lynchburg Road just to the south of the subject property. The property is just minutes from Houston Raceway Park, the San Jacinto Monument, and the Battleship Texas.

Adjacent to the subject property is San Jacinto Mall, a 1.2 million square foot regional shopping center anchored by Macy’s, JCPenney, Marshalls, Palais Royal, and Sears. It also contains over 100 specialty retailers and food court merchants including Premiere Cinemas 11.

Across the street, on the northeast corner of Garth Road and Hunt Road, is Baytown Plaza, a 63,245 sf neighborhood center anchored by Kohl’s, Michael’s and Pier One Imports. Co-tenants include Shoe Carnival, Olive Garden, Buffalo Wild Wings, Gamestop, Aaron Rents, Subway, AT&T and Verizon Wireless.

One and a half miles south on Garth Road is Baytown Village Shopping Center. Tenants include Hobby Lobby, Ross, Old Navy, Ofﬁ ce Depot, Petco, Anna’s Linens and Famous Footwear. Adjacent to this center is the city-owned Wayne Gray Sports Complex, a 42 acre park. The park offers 5 picnic areas, 2 tennis courts, a playground, a covered rental pavilion, and 8 athletic ﬁ elds.

Adjacent to the Sports Complex is Pirates Bay Water Park, a Caribbean themed, 4-acre water park. Pirates Bay features: Beach-style “Zero Entry” pool, Children’s Water Play Center, 671 foot Lazy River, Mat Racer, Tube Slides, FlowRider Surﬁ ng Machine and Lap Pool.

Located two miles southwest is Goose Creek Country Club and Golf Course, a member-owned private club with an 18 hole golf course, tennis courts and Olympic sized swimming pool.

SITE INFORMATION National and regional retailers in the immediate area include Wal-Mart Supercenter, (CONTINUED) Target, Home Depot, Lowe’s, Best Buy, Toys R Us, Kroger, Dollar General, Dollar Tree, AutoZone, Tractor Supply, Wells Fargo, O’Reilly Auto Parts, Walgreens and CVS Pharmacy, to name a few.

The property is also located near several hotels/motels, including Marriott Springhill Suites convention center, Hampton Inn, La Quinta, Comfort Suites, Holiday Inn and Best Western.

Also, within close proximity are several food outlets, including Chili’s Bar & Grill, Cracker Barrel, Denny’s, Jack-in-the-Box, Johnny Carino’s, McDonald’s, Golden Corral, Chick-ﬁ l-A, IHOP, Popeye’s Chicken, Red Lobster, Sonic, Subway, Taco Bell, Wafﬂ e House, Outback Steakhouse, Wendy’s and What-a-Burger.

ABOUT THE BAYTOWN AREA Baytown is 23 miles east of downtown Houston off I-10. Located within the Houston–Sugar Land–Baytown metropolitan area, it also lies along State Highway 146. Baytown had an estimated population of 71,802 for the 2010 census. It is the fourth-largest city within the metropolitan area.

Energy & Oil Services The Houston MSA is the energy capital of the United States. THE MAJOR GEOGRAPHIC CONCENTRATION OF THE ACTUAL PRODUCTION AND MANUFACTURING INVOLVED IN THESE ENERGY ACTIVITIES IS IN AND AROUND BAYTOWN. The corporate ofﬁ ces tend to be in downtown Houston. The following petroleum, natural gas, oil ﬁ eld equipment manufacturers and service companies have their international or national headquarters in Houston: ConocoPhillips, Exxon- Mobil, Shell Oil, BP, Marathon Oil Corporation, Schlumberger, Halliburton, Apache Corporation and Citgo.

The Greater Houston Partnership offers the following statistics for Houston’s energy sector.

• There are over 3,300 energy related companies located in the Houston MSA.

• Houston has 43 of the nation’s top 144 publicly traded oil and gas ﬁ rms.

• The Houston MSA has 23.2% of the US operable crude capacity.

• 30% of the US jobs in oil and gas extraction are located in the Houston MSA.

ABOUT THE BAYTOWN AREA Houston has been called the Silicon Valley of the world’s oil industry due its (CONTINUED) concentration of engineers. The U.S. Bureau of Labor Statistics reports that Houston’s Location Quotient (“LQ”) for engineers is 1.94. This means that Houston has 94% more engineers than the average for a U.S. city. Houston’s LQs run as high as 17.02 for petroleum, mining and geological engineers, 4.70 chemical engineers and 2.79 civil engineers.

Baytown is a prosperous industrial community with major corporations represented, such as ExxonMobil, Exxon Chemical, Chevron Phillips, Bayer, Amoco and more. There are more than 35 Baytown companies that, over the past ten years, have invested $1.75 billion into the community and created 2,200 jobs.

The centerpieces of Baytown’s economy are three industrial districts the city has created. These districts primarily support petroleum and petrochemical processing. The anchors are ExxonMobil, with over 4,000 employees; Bayer, with 2,000, and Chevron Phillips, with 1,000. The ExxonMobil Baytown Complex is one of the world’s largest industrial complexes. The Baytown Reﬁ nery located there is the largest in the United States. The Bayer Baytown Industrial Park is the largest of Bayer’s U.S. chemical processing sites producing a variety of petrochemical products. The Cedar Bayou Chemical Plant is similarly Chevron Phillips largest manufacturing site.

These industrial facilities exist here because the city is on the north shore of Galveston Bay, connecting it by water to Houston and the Gulf of Mexico. These industrial areas are on the waterfront 3-5 miles south, southwest, and west of the subject site. The subject area is retail and residential.

These companies employ sophisticated, well-paid workers. Even non-management blue-collar workers must be able to operate computerized pipe processes, where mistakes are expensive and dangerous. According to a recent WSJ article, in Baytown there is actually a shortage of such technologically trained, well paid employees.

ABOUT THE BAYTOWN AREA Port of Houston (CONTINUED) The Port of Houston is a 25-mile long complex of diversiﬁ ed public and private facilites linked by two major railroads and 150 trucking lines. In 2008, it ranked ﬁ rst in the United States in volume of foreign tonnage. Among Gulf of Mexico ports, the Port of Houston is the leader in containerized cargo. It is connected to Baytown’s industries by the Houston Ship Channel.

Wal-Mart and Home Depot Distribution Centers Completed in 2005, Wal-Mart Stores’ 4 million-square foot distribution center in Baytown’s 15,000 acre Cedar Crossing Business Park is the largest Wal-Mart complex of its kind in the country with nearly 92 acres indoors. The majority of goods bound for the Wal-Mart center come from Asia. This facility was largely in response to shipping congestion and labor delays in California. The relocation eliminates overland transport from California. The expansion now underway of the Panama Canal will be signiﬁ cantly incoming freight from Asia into Houston.

Home Depot has a 755,000 sf distribution center in this business park.

Recreation and Tourism Besides providing a home for this extensive energy-based industry, Galveston Bay also provides water-based recreational and tourism opportunities including:

1. Baytown Nature Center, 450 acres

2. Eddie Gray Wetlands Center

3. Bayland Park Marina

4. Lynchburg Ferry (since 1836). This historically quaint, free pedestrian and automobile ferry crosses the Houston Ship Channel south of Interstate 10.

5. Baytown Bridge, formally the Fred Hartman Bridge. This stunning bridge is one of the few bridges in the U.S. that is itself a tourist attraction. This also crosses the Houston Ship Channel, on Route 146, south of the Lynchburg Ferry.

ABOUT THE BAYTOWN AREA HOUSTON (CONTINUED) From 2005-2010, according to the U.S. Bureau of Labor Statistics, the Houston metro area added 129,800 private sector jobs, easily outdistancing #2 Dallas, which added 71,300.

Houston is among the fastest-growing metropolitan areas in the United States. The area grew 25.2 percent between the 1990 and 2000 censuses—adding more than 950,000 people—while the nation’s population increased 13.2 percent over the same period. Between 2000 and 2009, the population increase was 24.4%. From 2000 to 2009, the area grew by 1,152,000 people, making it the 3rd fastest growing metro area in the US. Between 2008-2009, the total growth in the metropolitan area ranked 2nd in the nation with a population increase of 140,000.

Houston–Sugar Land–Baytown is the sixth-largest metropolitan area in the United States with a population of 5.86 million as of the 2009 U.S. Census estimate.

HOUSTON HAS ONE OF THE STRONGEST ECONOMIES IN THE U.S. HOUSTON IS THE “HEADQUARTERS LOCATION” FOR THE U.S. ENERGY INDUSTRY!

THE GEOGRAPHIC FOCUS OF MUCH OF THIS ENERGY-RELATED ECONOMIC ACTIVITY IS IN AND AROUND BAYTOWN. (See previous pages).

Houston’s economy has a broad industrial base in the energy, aeronautics, and technology industries. The Port of Houston ranks fi rst in the United States in international commerce, and is the tenth-largest port in the world. It connects via the Houston Ship Channel to Galveston Bay (location of Baytown) and fi nally to the Gulf of Mexico, and is expected to be a primary benefi ciary of the widening of the Panama Canal, now underway. this will increase the tonnage of shipments coming in from Asia.

Houston is the home of the Texas Medical Center, the world’s largest concentration of healthcare and research institutions, and NASA’s Lyndon B. Johnson Space Center.

ABOUT THE BAYTOWN AREA In 2006, the Houston metropolitan area ranked fi rst in Texas and third in the U.S. (CONTINUED) within the category of “Best Places for Business and Careers” by Forbes magazine. Forty foreign governments maintain trade and commercial offi ces here, and the city has 23 active foreign chambers of commerce and trade associations. Twenty foreign banks representing 10 nations operate in Houston, providing fi nancial assistance to the international community.

Houston is home to Rice University, one of the country’s leading teaching and research universities, and the University of Houston, Texas’s third largest public research university, with more than 36,000 students from 130 countries.

Houston is served by two commercial airports. The larger is George H. Bush Intercontinental Airport (“IAH”), the ninth-busiest in the United States for total passengers, and 17th-busiest worldwide. By far the largest carrier has been Continental Airlines. Bush Intercontinental has been Continental’s largest hub, and is 30 to 40 minutes northeast of downtown. A merger has recently occurred between Continental and United Airlines, with the merged entity now under the United name. Continental’s hub here is now a major hub in the new combined airline. In fact, it could well grow in importance, because the closest other United hubs are Chicago and Denver.

The smaller commercial airport is William P. Hobby Airport, 20 minutes southeast of downtown. Hobby Airport (“HOU”) operates primarily small to medium-haul fl ights and is the only airport in Houston served by the discount carriers Southwest Airlines and JetBlue Airways. Southwest fl ies to about 20 cities from HOU and has 80% of the fl ights.

DEMOGRAPHICS 2009 ESTIMATE 3-MILE 5-MILE 7-MILE Population 36,649 87,538 104,563 Average HH Income $57,925 $58,242 $57,761 Growth 2000-2009 28.17% 15.71% 14.43%

The overall growth in the U.S. during 2000-2010 was just 9.7%. This is a high growth area!

NOTE The information set forth herein has been received by us from sources we believe to be reliable, but we have made no independent investigation of the accuracy or completeness of the information and make no representations with respect thereto. The above is submitted subject to errors, prior sale or lease, change in status, or withdrawal without notice.

TEXAS

SITE PLAN

DETENTION

75,685 sf

HUNT ROAD

GARTH ROAD

AERIAL – JUNE 1, 2011

EEASTPOINTASTPOINT MMEADOWLAKEEADOWLAKE NNEIGHBORHOODEIGHBORHOOD SSPRINGFIELDPRINGFIELD VVILLAGEILLAGE EESTATESSTATES CCOMMUNITYOMMUNITY

PRESTON PLACE CCOMMUNITYOMMUNITY

SSANAN JACINTOJACINTO REGIONALREGIONAL MALLMALL

Garth Road (82,000 ADT) Hunt Road DDETENTIONETENTION AAREAREA N

AERIAL

SSPRINGFIELDPRINGFIELD EESTATESSTATES

CCHASEHASE PPLAZALAZA

PPRESTONRESTON PPLACELACE MMEADOWLAKEEADOWLAKE CCOMMUNITYOMMUNITY VVILLAGEILLAGE

G SSANAN JJACINTOACINTO a r

t RREGIONALEGIONAL MMALLALL h

( 8 BBAYTOWNAYTOWN

MMai , PPLAZALAZA 0

nSnStre

tre

T et

)

JJo o

hhn

M M SUBJECT

aar

r tti i n

R RROSEMONTOSEMONT

o aad AATT BBAYTOWNAYTOWN d AAPARTMENTSPARTMENTS ad BAYTOWNBBAYAYAYTTOWO N W Archer Ro EMERGENCYMERGENRGENCYCYC CENTERCEN

PPIRATESIRATES BBAYAY AQUATIC PARK

GGRAYRAY SSPORTSPORTS W Cedar CCOMPLEXOMPLEX Lynchbu rg Road

W Cedar Lynch d CCOUNTRYOUNTRY QQUAILUAIL CCLUBLUB CCOVEOVE HHOLLOWOLLOW BBAYTOWNAYTOWN VVILLAGEILLAGE SSTERLINGTERLING HHIGHIGH BASEBALL FIELD CAMDEN MEDICAL/ LYNN AT RROSSOSS SS.. SSTERLINGTERLING Road BAYTOWNN PPROFESSIONALROFESSIONAL W Baker COUNTRYY HHIGHIGH SSCHOOLCHOOL CLUBC APTSS APARTMENTSTS OOFFICESFFICES W B k Road RREMINGTONEMINGTON

SSANAN JJACINTOACINTO ® MMETHODISTETHODIST PPARKARK SSENIORENIOR HHOSPITALOSPITAL LLIVINGIVING GGOOSEOOSE CCREEKREEK CCOUNTRYOUNTRY CCLUBLUB CCOUNTRYOUNTRY CCLUBLUB EESTATESSTATES

MAP

BBAYTOWNAYTOWN AAIRPORTIRPORT SUBJECT

0 mi 1 2 3 4

MAP

SUBJECT

0 mi 5 10 15 20

MAP

SUBJECT

0 mi 20 40 60 80 100 120

UPDATED SUMMARY REPORT (%) Coordinates Longitude: -94.980610 APRIL 27, 2011 Latitude: 29.796010

3.0 Mile 5.0 Mile 7.0 Mile Ring Ring Ring 28.27 sq/mi 78.54 sq/mi 153.94 sq/mi INCOME 2009 Per Capita Income $22,053 $21,668 $21,284 2009 Median Household Income $44,424 $42,887 $42,463 2009 Average Household Income $57,925 $58,242 $57,761

% 2009 Household Income < $10,000 8.20% 8.25% 8.35% % 2009 Household Income $10,000-$14,999 4.66% 6.71% 6.74% % 2009 Household Income $15,000-$19,999 4.23% 5.39% 5.57% % 2009 Household Income $20,000-$24,999 5.77% 6.04% 6.14% % 2009 Household Income $25,000-$29,999 6.56% 6.25% 6.31% % 2009 Household Income $30,000-$34,999 6.69% 6.82% 6.93% % 2009 Household Income $35,000-$39,999 6.62% 6.30% 6.44% % 2009 Household Income $40,000-$44,999 8.22% 7.33% 7.16% % 2009 Household Income $45,000-$49,999 7.89% 6.81% 6.84% % 2009 Household Income $50,000-$59,999 13.47% 11.62% 11.70% % 2009 Household Income $60,000-$74,999 12.97% 11.89% 11.81% % 2009 Household Income $75,000-$99,999 9.27% 11.04% 10.72% % 2009 Household Income $100,000-$124,999 2.72% 2.97% 2.86% % 2009 Household Income $125,000-$149,999 1.65% 1.41% 1.37% % 2009 Household Income $150,000-$199,999 0.60% 0.74% 0.66% % 2009 Household Income $200,000-$249,999 0.09% 0.08% 0.08% % 2009 Household Income $250,000-$499,999 0.38% 0.33% 0.31% % 2009 Household Income $500,000+ 0.01% 0.01% 0.01%

2009 Average Household Size 2.6 2.7 2.7 % 2009 Total Owner Occupied Housing Units 61.06% 66.80% 67.53% % 2009 Total Renter Occupied Housing Units 38.94% 33.20% 32.47%

2009 Total Daytime Population 36,170 86,584 102,927 2009 Total Daytime Work Population 18,024 38,740 44,925 2009 Total Establishments 1,732 3,902 4,507

UPDATED SUMMARY REPORT (%) Coordinates Longitude: -94.980610 APRIL 27, 2011 Latitude: 29.796010

2009 Average Household Size 2.6 2.7 2.7 % 2009 Total Owner Occupied Housing Units 61.06% 66.80% 67.53% % 2009 Total Renter Occupied Housing Units 38.94% 33.20% 32.47%

2009 Total Daytime Population 36,170 86,584 102,927 2009 Total Daytime Work Population 18,024 38,740 44,925 2009 Total Establishments 1,732 3,902 4,507