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3843 FM 2920 | Spring,

Representative Photo

offering memorandum

ED BRESLIN MANAGING DIRECTOR Broker License: 0 1 3 3 8 4 1 4 Office 310.774.3790 | Mobile 310.254.4177 | [email protected]

PAUL TRUPIA III MANAGING DIRECTOR Office 646.791.0818 | Mobile 914.774.5218 | [email protected] In Conjunction With Texas Licensed Broker: Paul Farris

New York | Florida | California CONFIDENTIAL DISCLAIMER

This Confidential Memorandum has been prepared by Kentwood Capital Advisors (“KCA”) and is being furnished to you solely for the purpose of your review of the commercial property located at 3843 FM 2920 | Spring, Texas (the “Property”). The material contained in this Offering Memorandum shall be used for the purposes of evaluating the Property for acquisition and shall not be used for any purpose or made available to any other person without the express written consent of Kentwood Capital Advisors (“Broker”). By accepting the Confidential Memorandum, you acknowledge and agree that: (1) all of the information contained herein and any other information you will be receiving in connection with this transaction, whether oral, written or in any other form (col- lectively, the “Materials”), is confidential; (2) you will not reproduce the Confidential Memorandum in whole or in part; (3) if you do not wish to pursue this matter, you will return this Confidential Memorandum to KCA as soon as practicable together with all other materials relating to the Property which you may have received from KCA; and (4) any proposed actions by you which are inconsistent in any manner with the foregoing agreements will require the prior written consent of KCA. This Confidential Memorandum has been prepared by KCA, based upon certain information pertaining to the Property and any information obtained from KCA to assist interested parties in making their own evaluation of the Property is offered on a no representation or warranty provision other than customary warranties of title and is sold on an “as-is, where-is” basis and with all faults. The material and transaction does not purport to be all inclusive. This Confidential Memorandum contains descriptive materials, financial information and other data compiled for the convenience of parties interested in the Property. The Materi- als are being delivered by KCA to prospective investors with the understanding that it is not all inclusive and that it is qualified in its entirety by independent investigation by prospective investors of those matters which they deem appropriate in evaluat- ing this offering without reliance upon KCA, the Broker or any of their respective affiliates or any of the information set out in the Materials. Neither KCA, the Broker, nor any of their respective affiliates have independently verified any of the information contained herein or in any of the Materials, and no representations or warranties as to the accuracy or completeness thereof or of any other kind whatsoever are made or intended and none should be inferred. KCA, for itself and its affiliates of the Property, expressly disclaim any and all liability for statements or representations, express or implied, contained herein or for omissions from the Materials or for any other written, oral or other format of communication transmitted to a prospective investor in the course of its evaluation of the proposed transaction. All summaries and discussions of documentation and/or financial information contained herein are qualified in their entirety by reference to the actual doc- uments and/or financial statements, which upon request may be made available. The terms and conditions described herein are subject to change without notice. This Confidential Memorandum does not constitute an offer to accept any investment proposal but is merely a solicitation of interest with respect to the investment described herein. The Confidential Memorandum does not constitute an offer of secu- rity. The investment described herein may be financed or withdrawn from the market, without prior notice. By accepting this Confidential Memorandum you agree to release KCA and hold it harmless from any kind of claim, expense, or liability arising out of your discovery or purchase of the Property. KCA reserves the right to request the return of the Materials at any time. Ownership of the Property reserves the right to negotiate with one or more prospective investors at any time. EXECUTIVE PRICE CAP NOI OVERVIEW $3,908,000 4.35% $170,000 The Investment

༴ Corporately Owned and Operated by 7-Eleven

༴ Absolute Triple Net Lease with Zero Landlord Responsibilities

༴ Brand new remodel and canopy, completed in 2020

༴ Massive oversized lot with full service car wash

༴ Fee Simple Ownership

༴ 10% Rental Escalations, every 5 Years Actual Site ༴ Four, 5 Year Tenant Renewal Options

༴ Massive gas stop with 20 pumps

༴ Exceedingly low rent for fee simple C-Store

༴ Potentially eligible for Bonus or Accelerated Depreciation

The Location

༴ Heavily trafficked area, located at the southeast corner of FM 2920, at its signalized intersection with Falvel Rd with a combined 50,000 vehicles per day passing the site daily

༴ High Visibility – the property is positioned directly on Falvel Road which connects the surrounding neighborhoods and gives access to the perfect demographic with 3 schools ranging from Elementary, Middle and High School with a combined enrollment of over 6,000 students +/-

༴ FM 2920 is a commercial corridor in the area that features a HEB Supermarket, and has access to David Wayne Hooks Airport, then leads to downtown Spring, TX.

༴ Solid affluent suburban area with an average household income above $70,000 within One Miles

༴ Significant surrounding population with almost 13,000 people in one mile radius and over 222,645 people in a five mile radius with continued forecasted growth by 2025

༴ Located approximately 25-miles northwest of downtown , TX.

༴ The traffic volumes, growth, population density, and accessibility of the immediate trade area have attracted numerous nationally known retail brands to the trade area. Actual Site

7 ELEVEN | SPRING, TX | PAGE 3 offering memorandum The Tenant & Guarantor

༴ The brand name 7-Eleven is now part of an international chain of convenience stores and is the largest chain store operator with approximately 65,000+ locations operating around the world, surpassing the previous record-holder McDonald’s Corporation in 2007.

༴ Its stores are located in sixteen countries, with its largest markets being Japan, the , Canada, the Philippines, Hong Kong, Taiwan, Malaysia and Thailand. 7-Eleven, Inc. as a former U.S.-originating company, is a subsidiary of Seven-Eleven Japan Co., Ltd, which in turn is owned by Seven & I Holdings Co. of Japan.

༴ The US chain has its headquarters in Irving, Texas .The company operates, franchises and licenses more than 9,800+ stores in the U.S. and Canada. Of the more than 9,800 stores the company operates and franchises in the United States, approximately 8,000 are franchised.

༴ Outside of the U.S. and Canada, there are more than 55,300 7-Eleven and other convenience stores in Japan, Taiwan, Thailand, South Korea, China, Malaysia, , Singapore, Australia, Philippines, Indonesia, Norway, Sweden & Denmark.

༴ 7-Eleven also is one of the nation’s largest independent gasoline retailers. Its company’s name was changed from The Southland Corporation to 7-Eleven, Inc. after approval by shareholders on April 28, 1999.

Actual Site

7 ELEVEN | SPRING, TX | PAGE 4 offering memorandum SITE PLAN

2920 50,000 VPD

EXXON Sign

CAR WASH FALVEL RD FALVEL 14,000 VPD

7 ELEVEN | SPRING, TX | PAGE 5 offering memorandum DOWNTOWN UPTOWN LEASE ABSTRACT HOUSTON HOUSTON Tenant Name 7 Eleven KLEIN COLLINS Property Address 3843 FM 2920 HIGH SCHOOL City, State Spring, Texas MSA Houston Est. Building Size 3,435 SF Lot Size 1.61 Ac Type of Ownership Fee Simple KREINHOP ELEMENTARY SCHOOL SCHINDEWORLF LEASE OVERVIEW INTERMEDIATE SCHOOL Tenant Name 7 Eleven SUBJECT Guarantee Corporate 14,000 VPD PROPERTY Store Remodel 2016 In Place NOI $170,000 Rent Commencement 12/1/2019 Original Lease Term 15.0 Years Lease Expiration 11/30/2034 Lease Term Remaining 14.6 Years 2920 Lease Type Absolute Triple Net (NNN) 2920 50,000 VPD Roof & Structure Tenant Responsible Rental Increases 10% Every 5 Years Options to Renew Four, 5 Year Options

RENT SCHEDULE FALVEL RD ANNUAL BASE RENT Year 1 - 5 $170,000 Year 6 - 10 $187,000 Year 11 - 15 $205,700 Year 16 - 20 (Option 1) $226,270 * Year 21 - 25 (Option 2) $248,897 Year 26 - 30 (Option 3) $273,786 Year 31 - 35 (Option 4) $301,165

*Monthly rent for the first 6 months of Option 1 (Year 16 shall be abated

7 ELEVEN | SPRING, TX | PAGE 6 offering memorandum S OLD RAND RD

SUBJECT PROPERTY

2920

50,000 VPD

14,000 VPD

2920 FALVEL RD

2920

DRONE AERIAL

7 ELEVEN | SPRING, TX | PAGE 7 offering memorandum S OLD RAND RD

2920

SUBJECT 50,000 VPD PROPERTY 2920

FALVEL RD 14,000 VPD

DRONE AERIAL

7 ELEVEN | SPRING, TX | PAGE 8 offering memorandum GRAND PARKWAY MARKETPLACE 99 GRAND PKWY (TOLL ROAD) 99 99 45

GRAND PARKWAY MARKETPLACE S OLD RAND RD

SPRING STUEBNER RD

SUBJECT FALVEL RD FALVEL PROPERTY

2920 PROPOSED ® MULTIFAMILY DEVELOPMENT 2920 45

LOUETTA CENTRAL SCHINDEWORLF KREINHOP KUYKENDAHL RD INTERMEDIATE SCHOOL ELEMENTARY SCHOOL

NORTH FWY KLEIN COLLINS HIGH SCHOOL      

SPRING CYPRESS RD

Americas

Drive•In SM SPRING HIGH CYPRESSWOOD COURT SCHOOL

45

MARKET AERIAL

7 ELEVEN | SPRING, TX | PAGE 9 offering memorandum S OLD RAND RD 14,000 VPD 2920 2920 50,000 VPD 2920

KREINHOP RD SUBJECT PROPERTY NO RM FALVEL RD FALVEL A N D Y

F

O

R

E

S

T

D KAHN RD

R

SCHINDEWORLF INTERMEDIATE SCHOOL

MEADOW HILL DR

CLOSEUP AERIAL

7 ELEVEN | SPRING, TX | PAGE 10 offering memorandum LOCATION OVERVIEW

7-Eleven is located at the southeast corner of FM 2920 (39,000 VPD), at its signalized intersection with Falvel Rd. (8,000 VPD) in Spring, TX and sits just +/- 2.5 Miles from Interstate-45, which is the connecting corridor between and Houston. FM 2920 is a commercial corridor in the area that features a two HEBs, a Lowe’s Home Improvement store, many national chain retailers, casual dining and fast food restaurants, and leads to downtown Spring, TX. Spring, TX is a census-designated place (CDP) within the extraterritorial jurisdiction of Houston in Harris , Texas, United States, and is a part of the Houston–The Woodlands–Sugar Land Matropolitan Statistical Area. The population was 54,298 at the 2010 census. SUBJECT SPRING The Houston Metropolitan Statistical Area is the fifth-most populous metropolitan statistical area in the United States, encompassing nine counties along the Gulf Coast in . With a population of over 7 million in 2019, Greater Houston is the second-most populous in Texas 5 Mile after the Dallas–Fort Worth metroplex. The approximately 10,000-square-mile (26,000 km2) region centers on Harris County, the third-most populous county in the U.S., which contains the city of Houston—the largest economic and cultural center of the South—with a population of more than 2.3 million.[9] Greater Houston is part of the megaregion along with the Dallas–Fort Worth metroplex, , and Greater . Greater Houston also serves as a major anchor and economic hub for the Gulf Coast. Its is the second largest port in the United States, sixteenth largest in the world, and leads the nation in international trade. Greater Houston has historically been among the fastest- growing metropolitan areas in the United States; it was the fastest-growing in absolute terms during the 2013–2014 census year, adding 156,371 people. The area grew 25.2% between HOUSTON 1990 and 2000—adding more than 950,000 people—while the country’s population increased only 13.2% over the same period, and from 2000 to 2007 alone, the area added over 910,000 people. The Greater Houston Partnership projected the would add between 4.1 and 8.3 million new residents between 2010 and 2050.

Demographics 1 mile 3 mile 5 mile

Population (Current) 15,464 88,139 211,966 Households 7,257 41,549 91,464 Average HH Income $66,986 $77,697 $91,642

7 ELEVEN | SPRING, TX | PAGE 11 offering memorandum 3843 FM 2920 | Spring, Texas

Representative Photo

offering memorandum

ED BRESLIN MANAGING DIRECTOR Broker License: 0 1 3 3 8 4 1 4 Office 310.774.3790 | Mobile 310.254.4177 | [email protected]

PAUL TRUPIA III MANAGING DIRECTOR Office 646.791.0818 | Mobile 914.774.5218 | [email protected]

New York | Florida | California