Wienerschnitzel Corporate Ground Lease

WIENERSCHNITZEL CORPORATE GROUND LEASE

LUFKIN, TX Overview

WIENERSCHNITZEL

101 N. BRENTWOOD DRIVE, LUFKIN, TX 75904

$666,666 4.50% PRICE CAP

LEASABLE SF LEASE TYPE YEAR BUILT 24,699 SF GROUND 2018

LEASE EXPIRATION PARKING 7/31/2033 10 SPACES

• Brand new 15-year corporate ground lease with four 5-year options

• Traffic counts exceed 40,000 VPD at one of the most prominent intersections in Lufkin

• Strong neighboring tenants include a Walmart Supercenter, Sam’s Club, Tractor Supply Co., Belk, Whataburger, and Starbucks

• Located in the retail, medical, industrial, and government hub of East Texas, with a daytime population over 100,000 people

• Over 46,000 residents with average household incomes exceeding This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the $62K within a 5-mile radius 2 information. Buyer must verify the information and bears all risk for any inaccuracies. Investment Highlights Contact the THE OFFERING is a brand new Wienerschnitzel with a 15-year corporate ground lease, team featuring four 5-year options to extend. JOE CACCAMO has excellent visibility at the intersection of N Brentwood THE SUBJECT PROPERTY [email protected] Road and Whitehouse Drive. Numerous roadways including highway on/off ramps and PH: 415.274.7394 frontage roads intersect within close proximity of the asset, providing combined traffic counts of over 40,000 VPD. The property is located adjacent to a 220,000 square CA DRE# 01191110 foot Walmart Supercenter and Sam’s Club. Other neighboring tenants in the immediate proximity include Tractor Supply Co., Academy Sports, Belk, Burlington Coat Factory, Texas Inn. & Suites, Starbucks, Taco Bell, Whataburger, and Wendy’s.

LUFKIN is located in eastern Texas, approximately 120 miles from Houston and 170 miles from Dallas. There are over 46,000 residents within a 5-mile radius of the property. Lufkin is known as the regional hub of East Texas for the medical, retail, industrial, and government fields. As the county seat of Angelina County, Lufkin offers a pro-industry community with highly skilled workers and a thriving forestry industry. The daytime population exceeds 100,000 people.

IN CONJUNCTION WITH TX LICENSED BROKER: Steve Sieling Azur Commercial Capital, LLC 214.888.8262

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any OVER 350+ LOCATIONS IN THE UNITED STATES inaccuracies. 3 CITY OF LUFKIN ELEMENTARY SCHOOL Aerial CHI ST. LUKE’S ANGELINA HEALTH COUNTY MEMORIAL ANGELINA COUNTY HIGH SCHOOL 287 CITY OF LUFKIN

ACADEMY 59 DRIVE 287 37,000 S TIMBERLAND VPD WOODLAND HEIGHTS MEDICAL CITY OF MIDDLE CENTER LUFKIN SCHOOL E DENMAN AVENUE

ELEMENTARY SCHOOL 21,000 ELEMENTARY VPD SCHOOL SCHOOL 20,000 VPD 59 287

FEAGIN DRIVE PRIMARY SCHOOL H&R BLOCK 287 50,000 VPD 69

ELEMENTARY SCHOOL

38,000 VPD 59

WHITEHOUSE HOUSTON DRIVE

120 MILES COLLEGE

DRIVE

ANGELINA COLLEGE ELEMENTARY SCHOOL 59

TEXAS This information has been secured from sources we believe SOUTHWOOD DRIVE BIBLE GOLF to be reliable but we make no representations or warranties, COURSE expressed or implied, as to the accuracy of the information. COLLEGE Buyer must verify the information and bears all risk for any 4 inaccuracies. Retail Aerial

1,700 VPD

38,000 VPD

WHITEHOUSE DRIVE

N BRENTWOOD DRIVE

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed 5 or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. Submarket Overview

RETAILERS IN CLOSE PROXIMITY INCLUDE:

Academy Sports Dollar Tree Sam’s Club AT&T Hobby Lobby Starbucks Bed Bath & Beyond Home Depot Tractor Supply Co. Best Buy McDonald’s Ulta Burger King Panda Express Walmart Supercenter Burlington Coat Factory PetSmart Wendy’s Chick-fil-A Ross Dress for Less Whataburger

BUSINESS SUMMARY

TOTAL 1-MILE 3-MILES 5-MILES

Businesses 223 1,646 2,356

Employees 3,930 23,432 32,021

Residential 2,652 24,424 46,239 Population

KEY 1-MILE 3-MILES 5-MILES 6 Income & Expense

PRICE $666,666 Capitalization Rate: 4.50% Total Rentable Area (SF): 24,699 STABILIZED INCOME PER SQUARE FOOT Scheduled Rent $1.21 $30,000 Effective Gross Income $1.21 $30,000 LESS PER SQUARE FOOT Taxes NNN $0.00 Insurance NNN $0.00 Structural Reserve NNN $0.00 EQUALS NET OPERATING INCOME $30,000

This information has been secured from sources we believe to be reliable but we make no representations 7 or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. Rent Roll

TENANT INFO LEASE TERMS RENT SUMMARY

CURRENT MONTHLY YEARLY MONTHLY YEARLY TENANT NAME SQ. FT. RENT RENT RENT RENT/FT RENT/FT

Wienerschnitzel 24,699 8/12/2018 7/31/2023 $30,000 $2,500 $30,000 $0.10 $1.21

8/1/2023 7/31/2028 $2,800 $33,600 $0.11 $1.36

8/1/2028 7/31/2033 $3,080 $36,960 $0.12 $1.50

Option 1 8/1/2033 7/31/2038 $3,388 $40,656 $0.14 $1.65

Option 2 8/1/2038 7/31/2043 $3,725 $44,722 $0.15 $1.81

Option 3 8/1/2043 7/31/2048 $4,098 $49,194 $0.17 $1.99

Option 4 8/1/2048 7/31/2053 $4,508 $54,113 $0.18 $2.19

TOTALS: 24,699 $30,000 $2,500 $30,000 $0.10 $1.21

NOT A PART

1,700 VPD N BRENTWOOD DRIVE NOT A PART

WOMEN’S SHELTER OF EAST TEXAS

NOT A PART

PYLON SIGN

WHITEHOUSE DRIVE

This site plan is a rendering that has been created based on sources we believe to be reliable. We make no representations or warranties, DRIVE 9 expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

DANIEL MCCALL Site Plan N BRENTWOOD DRIVE

24,699 0.567 10 RENTABLE SF ACRES SPACES WHITEHOUSE DRIVE

WHITEHOUSE DRIVE

59 38,000 VPD 1,700 VPD

59 N BRENTWOOD DRIVE

DANIEL MCCALL DRIVE DANIEL MCCALL DRIVE

WHITEHOUSE DRIVE

This site plan is a rendering that has been created based on sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 10 Tenant Overview

ABOUT WIENERSCHNITZEL

Wienerschnitzel is known as the world's largest hot dog chain, with over 50 years in business. As a family owned brand, there are over 350 corporate and franchise locations within Arizona, California, Colorado, Illinois, Louisiana, New Mexico, Nevada, Texas, Utah, and Washington.

During summer 2018, Wienerschnitzel opened four new "Heritage" restaurants, featuring an inside dining option, with plans to continue growth into 2019.

LOCATIONS IN THE U.S. 350+ AND GUAM

POPULATION DALLAS (170 MILES) 1-MILE 3-MILES 5-MILES 2010 2,466 23,099 44,251

2018 2,652 24,424 46,239 2023 2,760 24,934 47,216 LUFKIN

2018 HH INCOME 1-MILE 3-MILES 5-MILES Average $70,251 $69,503 $62,013

Median $51,980 $49,869 $43,554

HOUSTON TOP EMPLOYERS (120 MILES) EMPLOYER # OF EMPLOYEES Lufkin ISD 1,537

Pilgrim’s Pride 1,300

Brookshire Brothers/Polk Oil 1,100 Lufkin State Supported Living Center 1,100 THE AVERAGE HOUSEHOLD CHI St. Luke’s Health 1,075 INCOME WITHIN A 1-MILE RADIUS IS OVER $70K

This information has been secured from sources we believe to be reliable but we make no representations or 12 warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. Location Overview LUFKIN, TEXAS

ANGELINA NATIONAL FOREST

LUFKIN is the largest community between Houston and Tyler, LUFKIN THE ECONOMY IN LUFKIN is thriving and has where more than 36,000 people reside. Lufkin is the medical, ECONOMY future plans to continue the healthy economy. retail, industrial, and governmental hub of East Texas, including Recently, Angelina Forest Products announced a 12-county region with an estimated labor force exceeding the building of a $100 million sawmill by spring 145,000 residents. Lufkin offers a pro-industry community of 2019. The addition of the sawmill will create 100 full-time jobs through highly skilled workers and receptive community leaders, and contribute more than $52 million to the Texas economy in the leading to a daytime population of over 100,000 people. Lufkin first year. Forestry contributes more than $32.5 billion in economic is also a popular tourist destination for neighboring residents activity, 144,500 jobs, and $8.4 billion in labor income to the Texas who are interested in visiting the Ellen Trout Zoo, Texas Forestry economy. Museum, The Museum of East Texas, Naranjo Museum of Natural History, and as a gateway to Sam Rayburn Reservoir ANGELINA COUNTY and the Angelina and Davy Crocket National Forests. 87,000+ POPULATION (ESTIMATED)

This information has been secured from sources we believe to be reliable but we make no representations 13 or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. We’d love to hear from you.

JOE CACCAMO [email protected] PH: 415.274.7394 CA DRE# 01191110

IN CONJUNCTION WITH TX LICENSED BROKER: Steve Sieling Azur Commercial Capital, LLC 214.888.8262

CAPITAL PACIFIC COLLABORATES. CLICK HERE TO MEET OUR SAN FRANCISCO TEAM:

ZEB RIPPLE CHRIS KOSTANECKI CHRIS PETERS

JOHN ANDREINI JOE CACCAMO DAVE LUCAS

ZANDY SMITH RICK SANNER JACK NAVARRA

JUSTIN SHARP

Copyright © 2018 Capital Pacific Partners 11-2-2015 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.

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