Hat Creek Burger Company Currently Operates 25+ Locations Throughout Texas with Aggressive Expansion Plans for the Near Future

Home , Arneson River Theater, Rolling Oaks Mall, Shops at Rivercenter

7617 N LOOP 1604 E Live Oak, TX 78233

™ 1 | 3 INVESTMENT HIGHLIGHTS 7 FINANCIAL OVERVIEW

10 TENANT OVERVIEW 11 AREA OVERVIEW

LISTING AGENTS

CHAD KURZ JOSH BISHOP EVP & MANAGING DIRECTOR VP & DIRECTOR DIR: 214.692.2927 DIR: 214.692.2289 MOB: 562.480.2937 MOB: 315.730.6228 [email protected] [email protected] LIC # 01911198 (CA) LIC # 688810 (TX)

KYLE MATTHEWS BROKER OF RECORD LIC # 9005919 (TX) INVESTMENT HIGHLIGHTS

LEASE AND LOCATION

• 20-Year Sale-Leaseback commencing at the close of escrow

• Absolute NNN Lease with zero management responsibilities

• Annual 1.50% rent increases; Average cap rate of 7.52% over the base term of the lease

• Corporate guarantee from Hat Creek

• Brand new construction completed in April 2020

• Explosive population growth of 10% over the next 5-years

• Average household income exceeds $87K annually

• 5-mile population of 216,975 residents

• Located off of Anderson Loop which sees more than 107,000 vehicles daily

• San Antonio is the seventh most populous city in the United States and second-most populous city in Texas TENANT

• Hat Creek Burger Company currently operates 25+ locations throughout Texas with aggressive expansion plans for the near future

• All Hat Creek locations are owned and operated by corporate allowing for higher profitability compared to franchisee stores, which pay royalties

• The average store sales for Hat Creek exceed other well-known QSR’s such as In-N-Out, Burger King, Chipotle, Starbucks, Jack in the Box, Wendy’s, and Taco Bell

• The owners of Hat Creek are well versed in the restaurant space and have decades of operating experience (see agent for more details)

• Hat Creek handpicks each of their locations and targets major MSA’s with a high average household income

3 | NE

VILLAS AT MIRA LOMA

NEW MULTIFAMILY DEVELOPMENT

| 4 ROLLING OAKS MALL NW

NEW DEVELOPMENT NEW MULTIFAMILY DEVELOPMENT

ANDERSON LOOP ± 107,200 VPD RETAIL UNDER CONSTRUCTION

5 | SE

NEW DEVELOPMENT ANDERSON LOOP ± 107,200 VPD

| 6 FINANCIAL OVERVIEW

PROPERTY SUMMARY TENANT SUMMARY

Tenant Trade Name Hat Creek Burger Inc. Price $3,707,692 Type of Ownership Fee Simple

Cap Rate 6.50% Lease Guarantor Corporate

Lease Type NNN Increases 1.50% Annually Roof and Structure Tenant Responsible

Original Lease Term 20 Years Year Built 2020 Rent Commencement Close of Escrow

Total GLA ± 3,362 SF Lease Expiration Date 20 Years

Increases 1.5% Annually Lot Size ± 45,132 SF Options Four (4), Five (5) Year Options

7 | ± 12 MILES

| 8 FINANCIAL OVERVIEW

Annualized Operating Data

MONTHLY RENT ANNUAL RENT CAP RATE MONTHLY RENT ANNUAL RENT CAP RATE Year 1 $20,083.33 $241,000 6.50% Year 11 $23,307.53 $279,690 7.54%

Year 2 $20,384.58 $244,615 6.60% Year 12 $23,657.14 $283,886 7.66%

Year 3 $20,690.35 $248,284 6.70% Year 13 $24,012.00 $288,144 7.77%

Year 4 $21,000.71 $252,008 6.80% Year 14 $24,372.18 $292,466 7.89%

Year 5 $21,315.72 $255,789 6.90% Year 15 $24,737.76 $296,853 8.01%

Year 6 $21,635.45 $259,625 7.00% Year 16 $25,108.83 $301,306 8.13%

Year 7 $21,959.99 $263,520 7.11% Year 17 $25,485.46 $305,826 8.25%

Year 8 $22,289.39 $267,473 7.21% Year 18 $25,867.74 $310,413 8.37%

Year 9 $22,623.73 $271,485 7.32% Year 19 $26,255.76 $315,069 8.50%

Year 10 $22,963.08 $275,557 7.43% Year 20 $26,649.59 $319,795 8.63%

AVERAGE 7.52%

DEBT QUOTE

Please contact a Barrington Capital agent for financing options:

Kevin Puder [email protected]

9 | TENANT OVERVIEW

Tenant Overview Hat Creek Burger Company is a dream of founder Drew Gressett that started in 2008. Giving it his everything, he opened a food trailer serving up amazing burgers, fries, and shakes. The rest is history!

Austin didn’t draw the short straw with food trucks and trailers, but the desire to serve mouthwatering perfection and never cut corners quickly set Hat Creek apart from the crowd. It’s all about simplicity. Fresh, never frozen beef served on freshly baked buns with fresh veggies. Over time additional items were added to the menu to satisfy the whole family as well as homemade sauces to top everything off.

After serving thousands of burgers from the beloved food trailer, Hat Creek moved into the legendary Burnet Road location to bring delicious foodstuffs to the masses. Soon enough, Hat Creek was catering events all over town, and in 2011 opened the flagship location in West Lake Hills. Now, with three children, Drew’s focus on quality and serving the whole family was taken to the next level. Friendly and helpful service became the top priority (second only to food quality), play yards were added, and the fast-casual, family-friendly burger patio was born.

The mission is to provide fellowship and fresh cheeseburgers to all who come in contact with Hat Creek, and the goal is to become the best fast-casual, family- friendly restaurant in the country. Hat Creek has an entire team of professionals dedicated to making customers’ visit the best it can possibly be. As the company grows, these three things will never change: Hat Creek will always be a place for good food, good friends, and good fun. It’s that simple.

| 10 Area Overview

LIVE OAK, TX DEMOGRAPHICS

POPULATION 1-MILE 3-MILE 5-MILE In 1960 the intersection of Loop 1604 and Interstate 35 was considered 2025 Projection 9,750 91,296 233,982 to be the center of the city of Live Oak. Live Oak was founded amid gently rolling hills in an area of rich farming and ranching. Live Oak 2020 Estimate 8,861 84,361 216,975 evolved into a peaceful residential area with shopping centers, major 2010 Census 6,039 67,874 183,094 medical complexes and hospitals, college campuses, and financial Growth 2020 to 2025 10.03% 8.22% 7.84% institutions. Live Oak’s population is 15,335 people. Since 2010, it has Growth 2010 to 2020 46.73% 24.29% 18.50% had a population growth of 23.4%. Live Oak has seen the job market HOUSEHOLDS 1-MILE 3-MILE 5-MILE increase by 1.6% over the last year. Future job growth over the next ten 2025 Projection 3,646 34,157 85,466 years is predicted to be 39.6%, which is higher than the US average of 2020 Estimate 3,308 31,549 79,214 33.5%. 2010 Census 2,304 25,435 66,928 Growth 2020 to 2025 10.22% 8.27% 7.89% Live Oak is in Bexar County and is considered part of the San Antonio Growth 2010 to 2020 43.58% 24.04% 18.36% Metropolitan Area. Many of the residents have lived in Live Oaks for over 10 years. INCOME 1-MILE 3-MILE 5-MILE 2020 Average $87,956 $81,753 $82,414 Household Income

SAN ANTONIO, TX

San Antonio, officially the City of San Antonio, is the seventh most populous city in the United States and the second-most populous city in both Texas and the Southern United States. Straddling the regional divide between South and Central Texas, San Antonio anchors the southwestern corner of an urban megaregion colloquially known as the “Texas Triangle”.

San Antonio is the center of the San Antonio–New Braunfels metropolitan statistical area. Commonly called Greater San Antonio, the metro area has a population of 2,473,974 based on the 2017 U.S. census estimate, making it the 24th-largest metropolitan area in the United States and third- largest in Texas. Growth along the Interstate 35 and Interstate 10 corridors to the north, west, and east make it likely that the metropolitan area will continue to expand. ECONOMY

The City of San Antonio maintains a strong financial position with a “AAA” general obligation bond rating from all three major rating agencies. The Milken Institute has ranked San Antonio No. 1 on its Best-Performing Cities list. As the seventh-largest city in the United States, San Antonio is experiencing solid economic growth in 21st-century industries such as bioscience and healthcare, aerospace, IT and cybersecurity, and green technologies. Biotech companies and healthcare systems in San Antonio contribute billions to the local economy. The Aerospace industry remains a dominant economic strength in San Antonio with the presence of several aviation and aerospace corporations, including the military. The military has had a significant relationship with San Antonio for more than 200 years and is home to several military commands. The city is also a cybersecurity hub; nationally recognized as a leader in the field of information security.

San Antonio is positioning itself to be at the forefront of the New Energy Economy in the United States, committed to investing and creating employment opportunities in green industries. The economy has remained steady and prosperous by successfully attracting new businesses and helping existing companies grow. The city has focused on creating new employment opportunities in 21st-century industries, maintaining a great quality of life, and facilitating business growth at the local and international levels.

3RD 6 LARGEST CITY FORTUNE 500 IN TEXAS COMPANIES

2.4 3 MAJOR MILLION PEOPLE SPORTS TEAMS

| 12 12 | SAN ANTONIO CULTURE San Antonio is a popular tourist destination. The Alamo Mission in San “Museum Reach” beginning in Brackenridge Park through downtown, Antonio (“The Alamo”), located in Downtown, is Texas’ top tourist attraction. “Downtown Reach”, past the Blue Star’s “Eagleland” to the “Mission Reach” Because of the mission, San Antonio is often called “Alamo City”. ending near Loop 410 South past Mission Espada. Lined with numerous shops, bars, and restaurants, as well as the Arneson River Theater, this The River Walk, which meanders through the Downtown area, is the city’s attraction is transformed into an impressive festival of lights during the second-most-visited attraction, giving it the additional nickname of “River Christmas and New Year holiday period (except for the Mission Reach), and City”. Extended an additional 13 miles between 2009–2013, the landscaped is suffused with the local sounds of folklorico and flamenco music during the walking and bike path line the San Antonio River from the summer, particularly during celebrations such as the Fiesta Noche del Rio.

SAN ANTONIO ATTRACTIONS The city is home to three animal attractions. SeaWorld, 16 miles west of It is expected to open by summer 2018. The San Antonio Aquarium is the Downtown in the city’s Westover Hills district, is the number 3 attraction and third and final attraction. San Antonio is also home to several commercial one of the largest marine life parks in the world. The very popular and historic amusement parks, including Six Flags Fiesta Texas, Splashtown and Morgan’s San Antonio Zoo is in the city’s Brackenridge Park. A third animal attraction Wonderland, a theme park for children with special needs. Kiddie Park, is in development by British company Merlin Entertainments to accompany featuring old-fashioned amusement rides for children, was established in SeaWorld as a second aquarium attraction and indoor counterpart. The new 1925 and is the oldest children’s amusement park in the U.S. attraction will be inside the Shops at Rivercenter in Downtown San Antonio 13 | and will be one of Merlin’s Sea Life Aquariums. Confidentiality Agreement & Disclaimer

This Offering Memorandum contains select information pertaining to the business and affairs ofHat Creek Burger located at 7617 N Loop 1604 E, Live Oak, TX 78233 (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

| 14 LISTING AGENTS

KYLE MATTHEWS BROKER OF RECORD LIC # 9005919 (TX)

™

15 | 11-2-2015 Information About Brokerage Services Texas law requires all real estate license holders to give the following informaƟon about brokerage services to prospecƟve buyers, tenants, sellers and landlords.

TYPES OF REAL ESTATE LICENSE HOLDERS: . • A BROKER is responsible for all brokerage acƟviƟes, including acts performed by sales agents sponsored by the broker. • 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 informaƟon about the property or transacƟon received by the broker; • Answer the client’s quesƟons and present any oﬀer to or counter-oﬀer from the client; and • Treat all parƟes to a real estate transacƟon 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 wriƩen lisƟng to sell or property management agreement. An owner's agent must perform the broker’s minimum duƟes above and must inform the owner of any material informaƟon about the property or transacƟon known by the agent, including informaƟon 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 wriƩen representaƟon agreement. A buyer's agent must perform the broker’s minimum duƟes above and must inform the buyer of any material informaƟon about the property or transacƟon known by the agent, including informaƟon disclosed to the agent by the seller or seller’s agent.

AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parƟes the broker must first obtain the wriƩen agreement of each party to the transacƟon. The wriƩen agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligaƟons as an intermediary. A broker who acts as an intermediary: • Must treat all parƟes to the transacƟon imparƟally and fairly; • May, with the parƟes' wriƩen consent, appoint a different license holder associated with the broker to each party (owner and buyer) to communicate with, provide opinions and advice to, and carry out the instrucƟons of each party to the transacƟon. • Must not, unless specifically authorized in wriƟng to do so by the party, disclose: ᴑ that the owner will accept a price less than the wriƩen asking price; ᴑ that the buyer/tenant will pay a price greater than the price submiƩed in a wriƩen offer; and ᴑ any confidenƟal informaƟon or any other informaƟon that a party specifically instructs the broker in wriƟng not to disclose, unless required to do so by law.

AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transacƟon 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 duƟes and responsibiliƟes to you, and your obligaƟons under the representaƟon 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 noƟce is being provided for informaƟon purposes. It does not create an obligaƟon for you to use the broker’s services. Please acknowledge receipt of this noƟce below and retain a copy for your records.

Kyle Matthews/Matthews Retail Group Inc. 678067 [email protected] (310) 919-5757 Licensed Broker /Broker Firm Name or License No. Email Phone Primary Assumed Business Name Kyle Matthews 678067 [email protected] (310) 919-5757 Designated Broker of Firm License No. Email Phone

Licensed Supervisor of Sales Agent/ License No. Email Phone Associate

Sales Agent/Associate’s Name License No. Email Phone

Buyer/Tenant/Seller/Landlord Initials Date

Regulated by the Texas Real Estate Commission InformaƟon available at www.trec.texas.gov IABS 1-0