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MARCUS & MILLICHAP OFFERING MEMORANDUM Activity#Z0380619

7 - ELEVEN & SHELL 8541 WEST FREEWAY FORT WORTH, 76116 OFFERING MEMORANDUM | 7 - ELEVEN & SHELL 8541 WEST FREEWAY, FORT WORTH, TEXAS 76116 INVESTMENT OVERVIEW

INVESTMENT HIGHLIGHTS

• Irreplaceable Off-Ramp Location • Absolute NNN Lease with Zero Landlord Responsibilities • Income Tax Free State • Corner Location with Dedicated Turn Lane • Large Pylon Sign with Freeway Visibility • 80,523 People in Three Mile Radius • 106,194 Vehicles Per Day on Interstate 30 • 7-Eleven is the World’s Largest Operator, Franchisor & Licensor of INVESTMENT SUMMARY Convenient Stores The Conway Group at Marcus & Millichap is pleased to present th • Fort Worth is the 4 Most Populous Metropolitan Area in the the sale of this 3,042 square foot 7-Eleven and Shell property in Fort Worth, Texas. The subject property operates as a NNN Lease, with zero landlord responsibilities. This convenient store sits on 0.74 acres of and, with filling stations present. Situated on a signalized OFFERING SUMMARY corner, with a dedicated turn lane and pylon signage, the subject property sees over 106,194 Vehicles Per Day on Interstate PRICE $1,974,000 30. Located in a Tax Free State, this 7-Eleven offers great visibility and easy access. NOI $101,640

th C A P R A T E 5.15 % Fort Worth is the 15 -Largest City in the United States, with a population of 875,000 people. Population growth is up 8.50 PRICE/SF $648.92 percent in a one mile radius from the property.

RENT/SF $33.41 7-Eleven was founded in 1927 and has now grown and evolved L E A S E T Y P E NNN into an international chain of convenience stores, operating nearly 7,800 company-owned and franchised stores in North GROSS LEASABLE AREA 3,042 SF America. 7-Eleven is privately owned and is a wholly-owned (GLA) subsidiary of Seven-Eleven Japan Co., Ltd in Tokyo, Japan. 7- Y E A R B U I L T 1997 Eleven has been honored by numerous companies and organizations throughout its 90 years in business. 7-Eleven, Inc hit L O T S I Z E 0.74 ACRES a milestone, opening its 60,000th store in 2016. OFFERING MEMORANDUM | 7 - ELEVEN & SHELL 8541 WEST FREEWAY, FORT WORTH, TEXAS 76116 OFFERING MEMORANDUM | 7 - ELEVEN & SHELL 8541 WEST FREEWAY, FORT WORTH, TEXAS 76116 LEASE SUMMARY

LEASE SUMMARY

Property Subtype Net-Leased Gas/ Convenience

Tenant 7-Eleven

Rent Increases 10% Every 5 Years P R O P E R T Y SUMMARY Guarantor Corporate Guarantee Property 7-Eleven & Shell Lease Type NNN Address 8541 West Freeway, Fort Worth, TX 76116 Lease Commencement October 1, 2008 Price $1,974,000 Lease Expiration September 30, 2023 Net Operating Income $101,640 Lease Term 15 Years CAP Rate 5.15 % Term Remaining on Lease 5 Years Year Built 1997 Renewal Options Four Five-Year Options Gross Leasable Area 3,042 SF Landlord Responsibility None Zoning N/A Tenant Responsibility Property Taxes, Insurance and Maintenance Type of Ownership Fee Simple

Right of First Refusal/Offer Yes – 20 days Lot Size 0.74 Acres

RENT SCHEDULE

Year Annual Rent Monthly Rent Rent/SF CAP Rate

Current $101,640 $8,470 $33.41 5.15%

10/1/2023 – 9/30/2028 $111,804 $9,317 $36.75 5.66%

10/1/2028 – 9/30/2033 $122,984.40 $10,248.70 $40.43 6.23%

10/1/2033 – 9/302038 $135,282.84 $11,273.57 $44.47 6.85%

10/1/2038 – 9/30/2043 $148,811.16 $12,400.93 $48.92 7.54% OFFERING MEMORANDUM | 7 - ELEVEN & SHELL 8541 WEST FREEWAY, FORT WORTH, TEXAS 76116 TENANT PROFILE

TENANT OVERVIEW

7-Eleven Inc. is a Japanese-owned American international chain of convenience stores, headquartered in Dallas, Texas. The chain was known as Tote'm Stores until it was renamed in 1946. Its parent company, Seven-Eleven Japan Co., Ltd., operates, franchises, and licenses 66,579 stores in 17 countries as of 30 June 2018. Seven-Eleven Japan is headquartered in Chiyoda, Tokyo and held by the Seven & I Holdings Co. 7-Eleven in the United States sells Slurpee drinks, a partially frozen soft drink introduced in 1965 (Oklahoma's stores are known as Icee Drink), and Big Gulp beverages, introduced in 1976. Other products include: 7-Select private-brand TENANT PROFILE products, coffee, fresh-made daily sandwiches, fresh fruit, salads, bakery items, hot and prepared foods, , Tenant 7-Eleven dairy products, carbonated beverages and energy drinks, Lease Guarantor Corporate juices, financial services, and product delivery services.

Ownership Private Supermarket News ranked 7-Eleven's North American operations No. 11 in the 2007 "Top 75 North American Food Years in Business 91 Years Retailers," based on the 2006 fiscal year estimated sales of Credit Rating AA- US$15.0 billion. Based on the 2005 revenue, 7-Eleven is the 24th largest retailer in the United States. As of 2018, 8,421 7- Number of Locations 66,579 Eleven franchised units exist across the United States. Franchise fees range between US $10,000 – $1,000,000 and Headquarters Dallas, Texas the ongoing royalty rate varies. Small-size Slurpees are free Website www.7-eleven.com on "7-Eleven Day", on July 11. OFFERING MEMORANDUM | 7 - ELEVEN & SHELL 8541 WEST FREEWAY, FORT WORTH, TEXAS 76116 TENANT PROFILE

TENANT OVERVIEW

Shell Oil Company is the United States-based wholly owned subsidiary of , trans-national corporation "oil major" of Anglo- Dutch origins, which is amongst the largest oil companies in the world. Approximately 22,000 Shell employees are based in the U.S. The U.S. headquarters are in , Texas. Shell Oil Company, including its consolidated companies and its share in equity companies, is one of America's largest oil and natural gas producers, natural gas marketers, gasoline marketers and petrochemical manufacturers.

Shell is the market leader through approximately 25,000 Shell-branded gas stations in the U.S. which also serves as Shell’s most visible public presence. At its gas stations, Shell provides diesel fuel, gasoline and LPG. Shell Oil Company was 50/50 partner with the Saudi Arabian government-owned oil company in , a refining and marketing joint venture which owns and operates three oil refineries on the Gulf Coast of the United States. However, Shell is TENANT PROFILE currently divesting its interest in Motiva.

Tenant Shell Shell products include oils, fuels, car services as well as exploration, production and refining of petroleum products. The Shell in Lease Guarantor Corporate Martinez, California, the first Shell refinery in the United States, supplies Shell and stations in the West and Midwest. Ownership Private

Years in Business 106 Years In recent years The Shell Oil Company's Midstream, and Downstream, in particular, have become limited to petroleum and chemical products. Credit Rating A+ This has come as a result of Royal Dutch Shell breaking off its Natural Gas and power businesses in to a new segment named Integrated Gas. Number of Locations 25,000 The Shell Oil Company's former Natural Gas and energy divisions are Headquarters Houston, Texas now Shell Energy North America, a closely integrated, but distinctive entity that runs across North America and is headquartered out of Website www.shell.us Houston. OFFERING MEMORANDUM | 7 - ELEVEN & SHELL 8541 WEST FREEWAY, FORT WORTH, TEXAS 76116 TRAFFIC AERIAL OFFERING MEMORANDUM | 7 - ELEVEN & SHELL 8541 WEST FREEWAY, FORT WORTH, TEXAS 76116 LOCATION AERIAL OFFERING MEMORANDUM | 7 - ELEVEN & SHELL 8541 WEST FREEWAY, FORT WORTH, TEXAS 76116 AREA7 ELEVEN DEMOGRAPHICS & SHELL GASOLINE

FORT WORTH OVERVIEW

The Fort Worth metro is a part of the Dallas/Fort Worth Metroplex and consists of Tarrant, Hood, Johnson, Parker, Wise and Somervell counties. The most populous cities in the metro are Fort Worth and Arlington, which are also some of the largest cities in the state. The metro is home to several higher-educational institutions, including the University of Texas at Arlington, which supplies an educated labor force for the large and diverse employment base.

METRO HIGHLIGHTS ECONOMY

▪ Lockheed Martin Aeronautics Co. is headquartered in Air Force Plant 4 in the city of Fort Worth. It serves the Naval Air Station, also based in the metro. CORPORATE BASE ▪ Healthcare is a strong economic driver, assisted by students graduating from the area’s many Major companies located in the metro include American Airlines Group, colleges and universities. Large employers include Texas Health Resources and University of D.R. Horton, Pier 1 Imports, Halliburton and BNSF Railway. Texas. ▪ General Motors’ assembly plant has been operating in the metro since 1954 and currently manufactures large SUVs for various divisions such as Chevrolet, GMC and Cadillac, providing numerous jobs. MILITARY PRESENCE ▪ Local amenities include the Kimbell Art Museum, Modern Art Museum of Fort Worth, the Naval Air Station Joint Reserve Base Fort Worth employs more than 11,000 National Cowgirl Museum and Hall of Fame, as well as rodeos at the Fort Worth Stockyards. personnel and generates a $1.3 billion annual impact to the local economy. DEMOGRAPHICS WORLD-RENOWNED EDUCATION SYSTEM The many local universities include the University of Texas at Arlington, which is the largest university in North Texas; Texas Christian University; 2017 2017 2017 2017 MEDIAN Tarrant County College; and Texas Wesleyan University. POPULATION: HOUSEHOLDS: MEDIAN AGE: HOUSEHOLD INCOME: 2.4M 880K 35 $59,900 Growth Growth U.S. Median: U.S. Median: 2017-2022*: 2017-2022*: 7.5% 9.6% 37.8 $56,300

* Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau

1 OFFERING MEMORANDUM | 7 - ELEVEN & SHELL 8541 WEST FREEWAY, FORT WORTH, TEXAS 76116 L O C A T I O N 11 OFFERING MEMORANDUM | 7 - ELEVEN & SHELL 8541 WEST FREEWAY, FORT WORTH, TEXAS 76116

Confidentiality and Disclaimer The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

Non-Endorsement Notice Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

Net Leased Disclaimer Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.