BELLAIRE FIESTA

HOUSTON, TX | SINGLE TENANT NNN OPPORTUNITY

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FULL NNN FIESTA MART HAS AN PRICED BELOW REPLACEMENT IMMEDIATE BUILT-IN TENANT HAS OCCUPIED GROCERY ANCHORED EXCELLENT HEALTH RATIO COST WITH A QUALITY INCOME GROWTH WITH THE SPACE FOR TENANT BELOW 2.0% INVESTMENT BASIS TO THE DIRT 10% BUMP IN 2020 30+ YEARS

HIGH QUALITY LOCATION WITH STRONG DEMOGRAPHICS CONTRACTUAL RENT BUMPS THROUGHOUT TERM EVERY 5 YEARS • Located at the intersection of Highway 6 and Bellaire Boulevard, the • The asset features nearly 10% rent bumps every five years, the first starting Property sees approximately 90,000 vehicles per day, and serves a in May of 2020, with renewal options at market rate to be negotiated by new population of over 180,000 within a 3-mile radius. Marketed as a ownership. “Hispanic-focused supermarket”, Fiesta caters towards the Hispanic population, and the immediate area population is over 36% Hispanic. The population is expected to increase nearly 10% within 5 years.

ABSOLUTE NNN LEASE WITH CORPORATE GUARANTY • The Opportunity provides investors 16 years of remaining absolute NNN lease term with built-in inflation risk protection, as well as corporate guarantees from Fiesta’s parent company, Bodega Latina Corporation. Bodega Latina Corporation operates one of the largest Hispanic- focused supermarket companies in the U.S., with over 120 stores across the Southwest U.S., and has revenues in excess of $3 billion. Fiesta accounts for 63 of those stores, and is primarily operating in the Dallas and Houston markets. Over 50% of the fastest growing U.S. Hispanic population resides in the 5 states in which Fiesta and its parent company operate. Source: Esri

Executive Summary | Bellaire Fiesta

2 PROPERTY DESCRIPTION

14487 Bellaire Boulevard, Houston, TX 77083

YEAR BUILT LAND AREA SIZE PARKING SPACES PARKING RATIO 1986 5.6 AC 83,610 SF 282 3.39/1,000 SF

LOCATION LEGAL DESCRIPTION

SEQ of Bellaire Blvd. & Highway 6 Parcel # Legal Description Acreage RES A4 PAVILION 1163300000006 5.11 IMPROVEMENTS VILLAGE R/P The Property consists of two (2) buildings. The main building is located on RES A3 PAVILION 1163300000005 0.49 the south side of the Property and contains 78,492 square feet leased solely VILLAGE R/P to Fiesta. The outparcel building at the north end of the Property along Bellaire Blvd. contains 5,118 square feet and currently operates as a Fiesta TRAFFIC COUNTS Beverage Mart. Bellaire Blvd: 35,140 VPD Highway 6: 46,580 VPD INGRESS/EGRESS Pavilion: 10,739 VPD The Property is accessible via four (4) primary access points. Three (3) are Total: 92,459 VPD located along the north boundary of the Property on Bellaire Blvd. One (1) is located along the eastern boundary of the Property on Pavilion Drive. FLOOD PLAIN The Property is also located on a hard corner at the signalized intersection, According to the Federal Emergency Management Agency (FEMA) – National further enhancing the Property’s ingress/egress. Flood Insurance Program (NFIP) – Flood Insurance Rate Map (FIRM) – for Harris County, Texas and incorporated areas – map no. 48201C0810L, dated, June 18, ZONING 2007 the property shown here on lies in zone X, which is outside the 0.2% annual Not applicable; there are no zoning code regulations for Harris County. chance floodplain.

Property Details | Bellaire Fiesta

3 AREA SNAPSHOT

S ILE M E IV F

FIVE MILE SUMMARY

Extremely Dense Location | 396,816 Residents

Catering to Demographic 34.1% Hispanic or Latino Origin

$84,834 Average Household Income

137,751 Households Averaging $224K in Value

$10 Billion in Annual Spending Power

Executive Summary | Bellaire Fiesta

4 DOWNTOWN GALLERIA

BELLAIRE FIESTA

Executive Summary | Bellaire Fiesta

5 SITE PLAN

TENANT SF FIESTA 78,492 FIESTA BEVERAGE MART 5,118

Property Details | Bellaire Fiesta

6 DEMOGRAPHICS 1 MILE 3 MILES 5 MILES PLACE OF WORK 2018 Businesses 514 3,117 8,988 2018 Employees 4,550 27,919 97,198 POPULATION 2018 Population - Current Year Estimate 16,605 176,257 396,816 2023 Population - Five Year Projection 17,757 188,897 430,330 2010-2018 Population Growth Rate 12.6% 10.1% 11.9% 2018-2023 Population Growth Rate 6.8% 7.0% 8.2% RACE & ETHNICITY White 22.1% 30.2% 35.7% Black or African American 34.0% 29.7% 25.3% Asian 25.3% 22.1% 21.8% American Indian or Alaska Native 0.3% 0.5% 0.5% Pacific Islander 0.1% 0.0% 0.0% Other Race 14.2% 13.3% 12.5% Two or More Races 3.9% 4.1% 4.1% Hispanic 33.9% 36.2% 34.1% White Non-Hispanic 5.9% 10.7% 17.3% DAYTIME POPULATION 2018 Daytime Population 13,853 124,606 312,832 HOUSEHOLDS 2018 Households - Current Year Estimate 5,020 56,373 137,751 2023 Households - Five Year Projection 5,363 60,376 149,290 2010-2018 Household Growth Rate 12.0% 9.9% 11.8% 2018-2023 Household Growth Rate 6.7% 6.9% 8.1% HOUSEHOLD INCOME 2018 Average Household Income $68,068 $74,058 $84,834 2023 Average Household Income $76,780 $83,840 $96,300 HOUSING VALUE 2018 Average Value of Owner Occ. Housing Units $179,361 $175,302 $223,394

Property Details | Bellaire Fiesta

7 TENANT PROFILE

Recently acquired by Bodega Latina Corporation, a California-based company which owns the El Super chain, Fiesta Mart operates 60+ supermarkets in Texas, concentrated completely in Houston, Austin, and Dallas-Fort Worth markets. Bodega Latina’s purchase of Fiesta was a strategic decision to capture more minority grocery store market share, and will contribute to the 120+ stores that Bodega will own across the southwest U.S. Along with its supermarket concept, the brand also owns several Fiesta Liquor stores (operated by Goose Cap Enterprises, LLC, call for details), which are generally located adjacent to a Fiesta Supermarket. Targeting largely Hispanic consumers, Fiesta is known for carrying a wide array of ethnic ingredients catering not only to Hispanic, but also Vietnamese, Thai and African consumers. Fiesta Mart is more than just a grocery store; it also offers convenient in-store courtesy booths where you can pay your utilities, cash checks, send money through Western Union, purchase license tags, and buy Texas Lottery Tickets, serving as a multi-purpose staple in the community.

Property Details | Bellaire Fiesta

8 TRADE AREA OVERVIEW

The Houston market contains over 384 million square feet of retail, including In the 1820’s, Stephen F Austin brought major malls. Houston’s overall occupancy rate of 94.9% is among the highest settlers to Texas to claim sizeable parcels of for metro areas of its size, comparing favorably to its largest Texas counterpart, abundant, beautiful, gently rolling prairies Dallas-Fort Worth (95.2%). Houston’s successes in creating new jobs and and timberland. The Allan Brothers founded growing wages have translated into greater purchasing power and consumer Houston in 1836 when they bought 6,000 confidence needed to positively impact Houston’s retail market. The Houston acres on the east side of Houston in an MSA contains a myriad of attractive retail corridors in high demand from area known as Harrisburg. They named retailers and investors, many of which typically possess strong demographics, the settlement “Houston” and advertised higher income levels, attractive traffic counts, robust occupancy percentages it as a thriving port city, the next capital and healthy rental rates. of the state and the commercial center of the Gulf Coast and began selling Houston Retail Sugar Land Retail land for $1.00 an acre. Today, The Total Submarket Houston Ship Channel, The George Existing Supply (SF) 391,387,391 13,448,674 Bush Intercontinental Airport and Vacant (SF) 20,010,623 528,087 Houston’s expansive roadways Occupancy 94.90% 96.10% such as Interstate 10, US Highway 59, and Highway 6 have fueled Average Rental Rate $20.23 $16.53 development in Southwest Houston Avg. Absorption (SF) 5,258,940 76,968 and are attributable to the explosive growth Under Construction (SF) 4,037,124 6,864 in this region.

SOUTHWEST HOUSTON RESIDENTIAL Tucked between two of Houston’s most affluent suburbs, Memorial and Sugar Southwest Houston offers residents endless housing options Land, the Property is in the Mission Bend area and has excellent accessibility including new custom homes located in award-winning master-planned to some of Houston’s busiest freeways; Highway 6 Westpark Tollway. The communities, and charming resale homes located in established neighborhoods. immediate area is home to National Tenants such as Walgreens, EZPawn, Taco The Property is on the border between Harris County and Fort Bend County, Bell, KFC, AutoZone, Little Caesars, Starbucks, Harbor Freight Tools, LA Fitness, and offers area residents quick access to George Bush Park, a 7,800-acre park and Wingstop. The property is roughly 5 miles from the Energy Corridor, 7 miles that provides a variety of public recreational activities to visitors. to Sugar Land, 13 miles to The Galleria, and just 20 miles to Downtown Houston.

Market Overview | Bellaire Fiesta

9 HOUSTON MARKET OVERVIEW

INTRODUCTION Houston is firmly established as a premier global city and is a leading destination for investment by all capital sources due to its unique combination of stability and dynamic growth. Houston combines its position as the “Energy Capital of the World” with a significant depth in the healthcare, technology and distribution industries to create an economic composition that serves as a buffer to national economic trends and provides stability and continued growth. The Houston MSA is home to an estimated 6.7 million people, making it, the fourth most populous city in the United States. The metro is expected to grow by another three million people over the next 35 years, reaching a population of more than 9.6 million by 2040.

Market Overview | Bellaire Fiesta

10 ECONOMY Houston is internationally known as home to NASA Johnson Space enter and Texas Medical Center, the world’s largest medical complex. Also, the Port of Houston is ranked first in the U.S. for foreign tonnage and is the largest Gulf Coast container port. The Houston MSA’s nominal gross area product in 2017 was $490.07 billion, according to U.S. Bureau of Economic Analysis. If Houston were a country, its economy would rank 24th in the world, and is larger than that of Poland and Nigeria, according to the International Monetary Fund. Only 23 foreign nations’ gross domestic products exceed Houston’s. Major players such as Citgo, Shell Oil, and ExxonMobil have brought their mergers and consolidations to Houston for the area’s entrepreneurial spirit, solid infrastructure, mid–continental location, low cost of living, and young, multi–national workforce. However, Houston is not only known as the energy capital of the world, but is also home to NASA Johnson Space Center, which employs more than 18,000 engineers, scientists and administrative personnel, as well as the Texas Medical Center, which employs approximately 106,000 healthcare professionals. The Houston area is also the academic center of the Southwest, with more than 375,500 students enrolled in local universities, colleges and institutions. Houston offers businesses the least expensive office space among major metropolitan markets. Overall occupancy cost in the Houston regional market is a big value that employers from around the world can capitalize upon as a strong competitive advantage. Housing costs are 36% below average and the city’s cost of living is 7% below the national average, resulting in a low unemployment rate. Houston has solid schools, master– planned neighborhoods and a host of recreational and cultural jewels. Houston’s businesses benefit from the region’s four deep–water ports, major airport system, extensive highway and rail networks, and one of the most business–friendly climates in the country.

Market Overview | Bellaire Fiesta

11 JOB AND POPULATION GROWTH Houston has received an explosion of national attention as it has consistently ranked among the fastest-growing cities in the country over the past decade. From October 2017 to October 2018, the Houston metro area added more than 117,000 jobs, marking the largest growth of all major U.S. cities this past year. The professional and business services industry saw the biggest increase, adding 30,600 new jobs to the area, closely followed by the construction industry, which added 25,600 new jobs. Since 2000, the Greater Houston Area grew by more than 2.1 million people, far beyond any other metro area in the country during the same time period. In addition, the Houston MSA is expected to grow by another three million people in the next 25 years, reaching a population of more than 9.6 million in 2040.

Population Growth % '00-'17 Job Growth % '05-17 Boston

Atlanta

Miami

Washington DC

Philadelphia

Houston

Dallas

Chicago

Los Angeles

New York

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Market Overview | Bellaire Fiesta

12 DISCLOSURE AND AGREEMENT

Affiliated Business Disclosure Disclaimer CBRE, Inc. operates within a global family of companies with many This Memorandum contains select information pertaining to the Property subsidiaries and related entities (each an “Affiliate”) engaging in a broad and the Owner, and does not purport to be all-inclusive range of commercial real estate businesses including, but not limited or contain all or part of the information which prospective investors may to, brokerage services, property and facilities management, valuation, require to evaluate a purchase of the Property. The information contained investment fund management and development. At times different in this Memorandum has been obtained from sources believed to be Affiliates, including CBRE Global Investors, Inc. or Trammell Crow reliable, but has not been verified for accuracy, completeness, or fitness Company, may have or represent clients who have competing interests in for any particular purpose. All information the same transaction. For example, Affiliates or their clients may have or express an interest in the property described is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions in this Memorandum (the “Property”), and may be the successful bidder relating to the general economy, market conditions, competition and for the Property. Your receipt of this Memorandum constitutes your other factors which are subject to uncertainty and may not represent acknowledgement of that possibility and your agreement that neither the current or future performance of the Property. All references to CBRE, Inc. nor any Affiliate has an obligation to disclose to you such acreages, square footages, and other measurements are approximations. Affiliates’ interest or involvement in the sale or purchase of the Property. This Memorandum describes certain documents, including leases In all instances, however, CBRE, Inc. and its Affiliates will act in the best and other materials, in summary form. These summaries may not be interest of their respective client(s), at arms’ length, not in concert, or in complete nor accurate descriptions of the full agreements referenced. a manner detrimental to any third party. CBRE, Inc. and its Affiliates will Additional information and an opportunity to inspect the Property may conduct their respective businesses in a manner consistent with the law be made available to qualified prospective purchasers. You are advised and all fiduciary duties owed to their respective client(s). to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal Confidentiality Agreement and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON Your receipt of this Memorandum constitutes your acknowledgement THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN that (i) it is a confidential Memorandum solely for your limited use and RISK. benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest The Owner expressly reserves the right, at its sole discretion, to reject confidence, (iii) you will not disclose it or its contents to any third party any or all expressions of interest or offers to purchase the Property, and/ without the prior written authorization of the owner of the Property or to terminate discussions at any time with or without notice to you. All (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this offers, counteroffers, and negotiations shall be non-binding and neither Memorandum in any manner detrimental to the Owner or CBRE, Inc. CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale If after reviewing this Memorandum, you have no further interest in agreement delivered by the Owner. purchasing the Property, kindly return it to CBRE, Inc. BELLAIRE FIESTA 14487 Bellaire Boulevard, Houston, TX 77083

CBRE Contacts Debt and Structured Finance Expert

JEFF JACKSON MATT BERRY ROBBIE KILCREASE JOHN FENOGLIO Vice President First Vice President Senior Associate Executive Vice President 713 787 1949 713 577 1640 713 577 1657 713 787 1911 [email protected] [email protected] [email protected] [email protected]

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