PIZZA HUT & WINGSTREET

NNN Investment

1330 South 14th Street DAVE DELATORRE T 619 247 8585 F 828 459 3066 Kingsville, Texas 78363 [email protected] EXECUTIVE SUMMARY NNN Investment

PROPERTY Pizza Hut Restaurant

LOCATION 1330 South 14th Street, Kingsville, Texas 78363

SALES PRICE $1,870,000

CAPITALIZATION RATE 5.35%

RENT Year 1-5 Years 6-10 Year 11-15 Years 16-20 Monthly $8,333 $9,167 $10,083 $11,092 Annual $100,000 $110,000 $121,000 $133,100

BUILDING SIZE 3,558 SF originally constructed in 1994 and Remodeled to Pizza Hut’s image standards in 2002

LAND PARCEL SIZE 41,164 SF

PRIMARY LEASE TERM & OPTION PERIODS New Twenty (20) Year Primary Lease Term Commencing at the Close of Escrow with Four Additional Five (5) Year Options to Extend at the Same Terms and Conditions.

RENTAL INCREASES Fixed ten (10%) percent increases every five (5) years including options.

DAVE DELATORRE T 619 247 8585 2 [email protected] EXECUTIVE SUMMARY Pizza Hut NNN Investment

TENANT INFORMATION MUY Pizza Tejas, LLC was established in June 2005 and currently operates a total of 218 Pizza Hut restaurants in and around the Houston, Dallas/Ft. Worth, San Antonio metro areas and also from Corpus Christi to the Mexico border.

Even though the company was established in 2005 MUY Pizza Tejas, LLC is very a mature company whose restaurants average more than 20 years of successful operations. MUY Pizza Tejas, LLC is also well capitalized and operates very profitably.

MUY Pizza Tejas, LLC is part of the MUY Pizza Companies which own another 2 Pizza Hut restaurant-operating companies with 88 Pizza Hut restaurants in 6 Southeast states, and another 60 Pizza Hut restaurants in Minnesota and Iowa. Collectively, the 3 MUY Pizza companies own and operate 366 Pizza Hut restaurants and is the second largest Pizza Hut franchisee in America.

Another MUY restaurant operating company called MUY Hamburger Partners, LLC operates 315 Wendy’s restaurants in the Texas, Ohio, New York, and Pennsylvania markets and is currently the second largest Wendy’s franchisee in America. Another restaurant operating company called MUY Brands, LLC also owns and operates 79 restaurants in 6 northeast states.

The collective MUY Companies own and operate 760 restaurants and were recently recognized by Nation’s Restaurant News 2017 industry survey as the 5th largest franchisee in America with annual revenues approaching $1 Billion. Please visit their company web site at http://muycompanies.com/ for additional information on the company.

3 EXECUTIVE SUMMARY Pizza Hut NNN Investment

COMMENTS The Kingsville Pizza Hut Property is centrally its close proximity to a number of academic located in the heart of Kingsville retail trade institutions, hospitals, and national hotels. H.M. area on South 14th street near the intersection King School, St. Gertrude’s High School, and of Interstate Highway 77. The immediate retail Memorial Middle School, which have a combined trade area consists of a dense retail corridor student population approaching 2,000 featuring nationwide and regional retailers such students are all within one block away. Texas as Walmart, Lowe’s, Tractor Supply, Aaron’s, A&M University-Kingsville is less than three Dollar Tree, IHOP, Subway, McDonald’s, Wendy’s miles away from the Property and has a total and Whataburger, among others, all within close enrollment of 9,000+ students. The Christus proximity of the Pizza Hut property. Spohn Hospital is a 100+ bed regional facility offering medical services to Kingsville residents The unique Pizza Hut restaurant building is and the surrounding communities. The Property a very large at over 3,500 SF was originally also draws from nearby cluster of recently constructed in 1994 so it has a 20+ year track developed national hotels such as Hampton Inn, record of successful operations in this location. Holiday Inn Express & Suites, La Quinta Inn & The building was remodeled to in 2002 to Pizza Suites, TownePlace Suites by Marriott. Hut’s image standards. The freestanding land parcel is also very large at close to one full The Pizza Hut property is located in Kingsville, acre and features traffic counts in the range Texas, home to “King Ranch”, which is the of 30,000 cars per day. There are also dense largest ranch in the state with over 825,000 residential neighborhoods with favorable fast acres. The city is also home to the Naval Air food demographics with more than 23,000 Station at Kingsville, which has over 4,500 individuals residing within a three-mile radius employees plus their families on or near the of the Pizza Hut. State Highway 141 and U.S. base. Kingsville is located on Interstate Highway Highway 281 also run through Kingsville and are 77 which is a major north-south thoroughfare large contributors as well to the trade area. within thirty (30) minutes southwest of Corpus Christi, two hours northeast of South Padre The Pizza Hut restaurant also benefits from Island, and three hours southwest of Houston.

DAVE DELATORRE T 619 247 8585 4 [email protected] SITE PLAN Pizza Hut NNN Investment

SUBJECT PROPERTY

DAVE DELATORRE T 619 247 8585 5 [email protected] AERIAL VIEWS Pizza Hut NNN Investment

SUBJECT PROPERTY

S 14TH STREET

DAVE DELATORRE T 619 247 8585 6 [email protected] AERIAL VIEWS Pizza Hut NNN Investment

2018 Demographics 3 Mile 5 Miles 7 Miles

Population 5,348 23,466 28,965

Average HH Income $61,535 $55,792 $57,511

Total Households 2,039 8,387 10,045

SUBJECT PROPERTY

SENATOR CARLOS TRUAN BLVD.

S 14TH STREET ~14,600 CPD

DAVE DELATORRE T 619 247 8585 7 [email protected] AERIAL VIEWS Pizza Hut NNN Investment

INTERSTATE 77 ~28,000 CPD

Spohn Hospital Kleberg (100 Beds)

SUBJECT H.M. King High School PROPERTY (~411 Students)

S 14TH STREET ~14,600 CPD

Southgate Mall

DAVE DELATORRE T 619 247 8585 8 [email protected] MAPS Pizza Hut NNN Investment

SUBJECT PROPERTY

SUBJECT PROPERTY

DAVE DELATORRE T 619 247 8585 9 [email protected] TRADE AREA Pizza Hut NNN Investment

BIG BOX RETAIL

Walmart Supercenter Lowe’s H-E-B

CVS Walgreens Hobby Lobby

DAVE DELATORRE T 619 247 8585 10 [email protected] TRADE AREA Pizza Hut NNN Investment

DINING

Taco Bell Louisiana Kitchen Whataburger

KFC Chili’s Wendy’s

DAVE DELATORRE T 619 247 8585 11 [email protected] TRADE AREA Pizza Hut NNN Investment

ACADEMIC INSTITUTIONS & BANKING

Texas A&M University Santa Gertrudis School Henrietta M. King School

Memorial Middle School Coastal Bend College First Community Bank

DAVE DELATORRE T 619 247 8585 12 [email protected] TRADE AREA Pizza Hut NNN Investment

HOSPITALITY & AREA ATTRACTIONS

La Quinta Inn & Suites Hampton Inn Holiday Inn Express & Suites

TownePlace Suites by Marriott Kings Ranch Naval Air Station Kingsville

DAVE DELATORRE T 619 247 8585 13 [email protected] TRADE AREA Pizza Hut NNN Investment

MEDICAL INSTITUTIONS & PLAZAS

Robert Morales MD Christus Spohn Hospital Kleberg Fresenius Medical Care Dialysis

Suarez Chiropractic Kingsville Professional Center Kingsville Junction

DAVE DELATORRE T 619 247 8585 14 [email protected] AREA INFORMATION Pizza Hut NNN Investment

Kingsville, Texas

Kingsville, Texas, the county seat of Kleberg Kingsville, one of the U.S. Navy’s two locations County, is located in South Texas on U.S. for jet aviation training. Highway 77, forty (40) miles southwest of Corpus Christi. Kingsville is the principal city Kingsville is nestled between the sparkling of the Kingsville Metropolitan Statistical Area, Texas Riviera to the east and the rugged Brush which is part of the larger Corpus Christi- Country to the west and is where modern Kingsville Combined Statistical Area. The city industry meets the history of the Old West. A itself has a population of 25,482 according to centennial city, Kingsville is steeped in tradition 2017 U.S. census estimates, while the Corpus and rooted firmly in the unique legacy of Christi-Kingsville Combined Statistical Area has South Texas. Founded by Henrietta M. King an estimated 516,793. and named in honor of Captain Richard King, Kingsville originated as a town on the St. Louis, The city was incorporated in 1913 and is Brownsville and Mexico Railway, with its first surrounded by acres of flourishing wildlife buildings being constructed in 1904. and natural beauty and is home to South Texas’s most famous settlement, the King Like many great cities, Kingsville has undergone Ranch. The city is also home to many other many changes since its inception, but a new age important institutions including Caesar Kleberg is dawning that will solidify its reputation as Wildlife Research Institute, the National the leading center of ranching, trade, industry Natural Toxins Research Center, Texas A&M and technology. Its strong educational system University-Kingsville, a member of the Texas and growing economy make Kingsville the ideal A&M University System, and Naval Air Station place to raise a family.

DAVE DELATORRE T 619 247 8585 15 [email protected] DAVE DELATORRE T 619 247 8585 F 828 459 3066 [email protected]

7486 La Jolla Boulevard, Suite 173 La Jolla, California 92037