11707 TX-1604 Loop | San Antonio, TX OFFERING MEMORANDUM LISTED BY Josh Bishop VP & Director Mobile +1 214 692 2289 Direct +1 315 730 6228 [email protected] License No. 688810 (TX) Conrad Sarreal Senior Associate Mobile +1 214 692 2847 Direct +1 626 230 1006 [email protected] License No. 01982875 (CA) Kyle Matthews Broker of Record License No. 9005919 (TX) ™ TABLE OF CONTENTS 3 EXECUTIVE OVERVIEW 6 FINANCIAL OVERVIEW 8 TENANT OVERVIEW 12 AREA OVERVIEW 11707 TX-1604 Loop | San Antonio, TX OFFERING MEMORANDUM EXECUTIVE OVERVIEW INVESTMENT HIGHLIGHTS • Right off of “The Loop” – The Northwest region of Loop 1604 is seeing major activity in terms of both growth and leasing. It’s arguably where you want to be in San Antonio. The Loop escorts nearly 100,000 cars per day passed the subject property and the nearby intersection sees roughly 40,000 cars per day. • Exciting Retail Synergy – Subject property benefits from all the consumers that are driving in this immediate vicinity to not only eat at the other eateries but also shop at Target, H-E-B Plus!, Lowe’s, PetSmart, Kohl’s, and Spec’s as well as visit Gold’s Gym, Santikos Entertainment Silverado (movies), and Urban Air Trampoline Park. • Extremely Strong Demographics – Incomes within 1-mile are $100,000+ and saw a staggering 15%+ growth. Meanwhile, the 5-mile population offers a dense 217,000+ residents with an expected ~7% growth over the next 5 years. • Outperforms Most Major QSR Brands – Thanks to the handmade tortillas and sale of liquor, this location brings in more revenue than the average In-N-Out, McDonald’s, Whataburger, Taco Bell, Hardees/Carl’s Jr, Burger King, and Wendy’s (Contact broker for details). • Completely Passive Investment – There is an absolute NNN lease in place where tenant covers taxes, insurance, and all maintenance of the property. • Upcoming Rent Increase – In 3 years, there’s a 5% rent increase to help hedge against inflation. • Income Tax-Free State – Texas is only 1 of 7 states that offers investors the luxury of paying no state income tax on revenue produced by this investment. (Consult your CPA for eligibility) 4 | OFFERING MEMORANDUM PARCEL MAP TACO CABANA| 5 FINANCIAL OVERVIEW $2,400,000 $138,686 5.78% LIST PRICE NOI CAP RATE BUILDING INFO 11707 TX-1604 Loopnue Address San Antonio, TX APN 15663-001-0100 Year Built 2003 GLA of Building ±3,551 SF Lot Size ±1.21 Acres (±52,620 SF) 6 | DISPOSITIONOFFERING MEMORANDUM PROPOSAL TENANT SUMMARY Trade Name Taco Cabana Ownership Type Fee Simple ANNUALIZED OPERATING DATA Lessee Entity Corporate Date Monthly Rent Annual Rent Cap Rate Lease Type NNN Current - 12/31/2023 $11,557 $138,686 5.78% Original Lease Term (Years) 20 Years 1/1/2023 - 12/31/2028 $12,135 $145,620 6.07% Option 1 $12,135 $145,620 6.07% Rent Commencement Date 9/22/2003 Option 2 $12,741 $152,901 6.37% Lease Expiration Date 12/31/2028 5% increase in 2023 Increases and in Option 2 Options 2, 5 Year Options TACO CABANA| 7 TENANT OVERVIEW The Offering Tenant Overview PROPERTY NAME Taco Cabana » Company Name » Year Founded » Headquarters Property Address 11707 TX-1604 Loop Taco Cabana 1978 San Antonio, TX San Antonio, TX » Ownership » Industry » No. of Locations SITE DESCRIPTION Public Restaurant ±176 Number of Stories One Taco Cabana specializes in Tex-Mex-inspired food made fresh by hand from unique authentic recipes and Year Built 2003 ingredients that reflect our rich Tex-Mex history. A wholly owned subsidiary of Fiesta Restaurant Group, Inc, it ±1.21 Acres (±52,620 SF) Lot Size is headquartered in San Antonio, Texas. As of September 2014, Taco Cabana had 166 locations throughout Type of Ownership Fee Simple Texas, Oklahoma and New Mexico. As of July 2017, there were 176 Taco Cabana restaurants. Taco Cabana is Landscaping Professional known for its pink stores and semi-enclosed patio dining areas. Most menu items are handmade daily on site Topography Generally Level in open display cooking areas. 8 | OFFERING MEMORANDUM SE BANDERA RD ± 42,620 VPD ANDERSON LOOP ± 109,300 VPD TACO CABANA| 9 DUB FARMS ATHLETIC COMPLEX NE ± 2,744 STUDENTS ± 2,744 STUDENTS BANDERA RD ± 42,620 VPD ANDERSON LOOP ± 109,300 VPD 10 | OFFERING MEMORANDUM N ± 2,744 STUDENTS BANDERA RD ± 42,620 VPD ANDERSON LOOP ± 109,300 VPD TACO CABANA| 11 AREA OVERVIEW SAN ANTONIO, TX OVERVIEW DEMOGRAPHICS San Antonio is now the seventh-largest city in the United States, second-largest in the State of Texas, and boasts one of the fastest growing metropolitan areas in the country. POPULATION 3-MILE 5-MILE 7-MILE 2025 Projection 25,079 131,009 214,974 2020 Estimate 24,276 126,417 207,773 The city added 31,200 new jobs over the last year 2010 Census 6,943 42,294 72,204 Growth 2020-2025 3.31% 3.63% 3.47% Expanded employment by 3.0%, which is 3rd among the Top 50 Metros in America. HOUSEHOLDS 3-MILE 5-MILE 7-MILE 2025 Projection 6,943 42,294 72,204 2020 Estimate 7,439 45,207 77,015 San Antonio ranked 8th as Forbes’ “America’s Cities of the Future” this year. 2010 Census 7,722 46,935 79,927 Growth 2020-2025 3.80% 3.82% 3.78% San Antonio titled “America’s Friendliest City,” by Travel + Leisure Magazine INCOME 3-MILE 5-MILE 7-MILE 2020 Avg $78,159 $88,173 $100,980 Household Income San Antonio ranked 2nd in the largest increase in millennials from 2010 to 2020 Med $61,127 $69,397 $76,637 2015 from a study from Bookings Institution. Household Income 12 | OFFERING MEMORANDUM LIVING IN SAN ANTONIO San Antonio is not shy to start-ups, especially in recent years. With concentrated efforts on the tech district, the city adopted a new nickname “Silicon San Antonio” due to the city’s embrace of the tech industry. Last year, large streaming service Hulu opened a viewer experience center in Alamo City. TaskUs, Google Fiber, and CaptureRX are opening local offices in San Antonio. Additionally, just up I-35, exciting new relocations are taking place, such as Amazon’s fulfillment center and Urban Mining Company. Thanks to this, the city’s rapid growth is matched with new career opportunities and more to come in the future. A city rich in tradition and history meets a unique culture that welcomes growth and success. As the 7th largest metropolitan city in the U.S, and still growing, San Antonio is no stranger to new possibilities. Placed perfectly in the heart of the Texas Hill Country straddling South Texas and Central Texas, San Antonio is in the center of a booming corridor with many business-friendly elements. San Antonio’s historically steady population growth has established a local market of 2.3 million residents, one that is projected to increase by 28% in the coming future. Moreover, there is an increasing population of young professionals flocking to central San Antonio, enticed by areas such as Pearl Brewery, Alamo Heights, and downtown, which offer an urban lifestyle with endless shopping, nightlife, culture, fine dining, and employment opportunities. With core values such as safety, integrity, and service, it’s no surprise that San Antonio was ranked #1 in America’s Friendliest Cities by Travel + Leisure. Other notable mentions include National Geographic Traveler’s one of the “Best of the World” destination for 2018, #3 in the 5 most underrated cities in the U.S. by Conde Nast Traveler, and within the top 20 of the Milken Institute’s annual list of best-performing cities. While San Antonio is crowned as one of the largest American cities, it still remains affordable in regard to the cost of living compared to other cities among its rank. TACO CABANA| 13 CONFIDENTIALITY AGREEMENT & DISCLAIMER This Offering Memorandum contains select information pertaining to the business and affairs ofTaco Cabana located at 11707 TX-1604 Loop | San Antonio, TX 90606 (“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.