O F F E R I N G M E M O R A N D U M

C V S P h a r m a c y

1830 Texoma Parkway – Sherman, TX 75090 D I S C L A I M E R & N O N –E N D O R S M E N T N O T I C E

C ONFIDENTIALITY & DISCLAIMER Marcus & Millichap hereby advises all prospective purchasers of Single Tenant Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a single tenant property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a single tenant property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any single tenant property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this single tenant property. © 2019 Marcus & Millichap. All rights reserved.

NO N -ENDO RSEMENT N O TICE Marcus and Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lease identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus and Millichap, it’s affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus and Millichap, and is solely included for the purpose of providing tenant lessee information about listing to prospective customers.

Activity ID: Z0380827

Page 2 Property Photo (No title)

Subject Property

Page 3 Investment Highlights

CVS Extended Original Term of lease for 25 years in 2011 Original term expires in 2036 5-five year options with increases

Only Freestanding CVS in 8 MI 17.7 On Forbes Best small places for business and careers, Sherman, is rated Years left on original term 87th Hard Corner of Major Thoroughfares VPD is 24 26,780 Hour Store; Common for top Tier Stores Drive time from Sherman1hour to Downtown Dallas is 1999 NNN; Double Drive-thru; adjacent to ’s, etc. Established & Operated AS CVS/ Eckerd Tax-Free State

Page 4 24 Hour

E Taylor St

Texoma Pkwy N Grand Ave

Page 5 Sherman’s Proximity to Downtown Dallas

66 Miles

Page 6 Lease Abstract

Built as an Eckerd in 1999

Eckard sold to CVS in June, 2004

Operated as Eckerd/CVS since 1999

CVS Extended lease in 2011 for 25 years plus 5 five-year options with increases

Lease Extension: July 1, 2011 - June 30, 2036 Annual Rent: $295,282

Option Number 1: July 1, 2036 – June 30, 2041 Annual Rent: $324,810

Option Number 2: July 1, 2041 – June 30, 2046 Annual Rent: $357,291

Option Number 3: July 1, 2046 – June 30, 2051 Fair Market Value

Option Number 4: July 1, 2051 – June 30, 2056 Fair Market Value

Option Number 5: July 1, 2056 – June 30, 2061 Fair Market Value

Page 7 Property & Pricing

Property Summary Pricing Summary

Property Address 1830 Texoma Parkway, Sherman Price $5,500,000 TX 75090 Net Operating Income $295,282 Assessor Parcel Number S-023 - 2479-001 Gross Leasable Area 10,908 Sq. Ft. Cap Rate 5.37%

S & P Rating BBB Stable Type of Lease NNN Lot Size 1.77 Acres Price / Building SF $504.22 Year Built 1999 Price / Land SF $71.33 Type of Ownership Fee Simple Zoning Commercial (general) Deal Structure All Cash

Page 8 Loan Quote & Deal Structure

Loan Quote Annualized Operating Income *$3,575,000 65% LTV Gross Operating Income $295,282 Fixed Rate of 4.90% Interest Only Expense Reserves $0 Due in 10 years *See Agent for other Loan Quotes Net Operating Income $295,282

Debt Service $175,175 Deal Structure with Loan Quote *Pretax Cash Flow $120,010 Purchase Price $5,500,000 *Percent Pretax Cash Flow 6.24% Cash Down Payment $1,925,000 (35%)

New First Loan $3,575,000 (65%) * Does not include Loan Fee’s and Closing costs.

Page 9 Tenant Overview

CVS Health Corporation, formerly CVS Caremark, together Mark Steven, Inc., that helped retailers manage their health with its subsidiaries is currently the largest pharmacy and beauty aid product lines. The business began as a chain chain in the as indicated by the number of of health and beauty aid stores, but within several years, locations (more than 9,900) and its total prescriptions pharmacies were added. To facilitate growth and expansion, revenue. As the pharmacy division of CVS Health, it the company joined The , which managed ranks as the 7th largest U.S. corporation according to a string of retail businesses. Following a period of growth Fortune 500 in 2017. CVS Pharmacy’s leading competitor in the 1980s and 1990s, CVS Corporation spun off from Boots Alliance ranked 37th. Melville in 1996, becoming a standalone company trading on the . It later completed a merger CVS sells prescription drugs and a wide assortment of with the pharmacy benefit management company Caremark Rx general merchandise, which include over-the-counter in 2007 and was renamed CVS Caremark Corporation. The drugs, beauty products and cosmetics, film and photo company was renamed CVS Health in 2014 following its finishing services, seasonal merchandise, greeting cards, decision to remove tobacco products from CVS Pharmacy and convenience foods through their CVS Pharmacy and store shelves. CVS Health’s assets include CVS Pharmacy, retail stores and online through CVS.com. It CVS Caremark, CVS Specialty, and the retail also provides healthcare services through its more than clinic MinuteClinic. 1,100 MinuteClinic medical clinics as well as their Diabetes Care Centers. Most of these clinics are located within CVS stores. The company began in 1964 with three partners who grew the venture from a parent company,

Page 10 Sherman, Texas

Sherman is home to Austin College a private, Presbyterian, liberal arts college. Founded in 1849, it is the oldest college or university in Texas operating under its original charter. The city is also home to a branch of Grayson County College, based in neighboring Denison. Sherman has a richly diverse history, and is ten miles south of Lake Texoma, one of the largest reservoirs in the state of Texas and is well-known for its champion bass fishing, sailing, camping and hiking.

Sherman is a U.S. city in and the county seat of Grayson County, Texas. It is one of the two principal cities in the Sherman–Denison Metropolitan Statistical Area, and it is part of the Texoma region of North Texas and southern Oklahoma.

Sherman faces a solid future based on its location, superior infrastructure and proven track record of attracting major employers. Sherman’s location dictates that it must grow, being directly in the path of the rapid northward expansion of the Dallas-Fort Worth metroplex.

Sherman’s infrastructure is outstanding. The transportation system is anchored by the crossroads of U.S. Highway 75 and U.S. Highway 82 and is bolstered by the excellent airport facilities at the North Texas Regional Airport (formerly Perrin Field) and Sherman Municipal Airport. Additionally, Lake Texoma guarantees a bountiful source of water.

The sales tax for economic development, administered by the Sherman Economic Development Corporation (SEDCO), provides the necessary incentives to attract large, high-quality employers. Sherman eagerly awaits a future that will be worthy of its proud heritage.

Page 11 Sherman, Texas

Administration building of the Austin College Campus

The Proximity to the Dallas–Fort Worth metroplex, a central U.S. location, and the availability of a good labor force have allowed Sherman to grow into a Mid-sized manufacturing and industrial center with favorable prospects for future economic development.

Apple Inc. announced that’s its $1 billion Advanced Manufacturing Fund Finisar, a leading manufacturer of optical communications components, will receive $390 million as part of Apple’s commitment to support innovation and job creation by American manufacturers. Finisar will transform a long-shuttered, 700,000-square-foot manufacturing plant in Sherman, Texas, into the high-tech VCSEL capital of the US. Apple’s award will create more than 500 high-skill jobs at the Sherman facility, including engineers, technicians and maintenance teams. When combined with the company’s nearby plant in Allen, Texas, Finisar’s payroll in Northern Texas is expected to be $65 million. Hiring, capital equipment planning and infrastructure upgrades are already underway at the Sherman facility, which is expected to begin shipping in the second half of 2018.

The United State Census Bureau recently released data showing Sherman and the surrounding cities are among the 30 fastest-growing Metropolitan Statistical Areas in the nation.

Forbes has highly ranked the town of Sherman, Texas in many reputable lists. Sherman is the #87 Best Small Places for Business and Careers, #100 in Cost of Doing Business, #55 in Job Growth, and #160 in Education.

Page 12 Population 1 Mile 3 Miles 5 Miles Demographics 2022 Projection 6,241 34,459 45,194 2017 Estimate 6,499 34,375 44,476

2010 Census 6,270 32,997 42,648

2000 Census 6,439 31,620 39,678 Income

Average $42,239 $59,179 $62,895

Median $30,122 $41,971 $44,376

Per Capita $14,743 $23,020 $24,598 Households

2022 Projection 2,154 13,419 17,745

2017 Estimate 2,190 13,109 17,116

2010 Census 2,109 12,570 16,394

2000 Census 2,302 12,221 15,393 Housing

2017 $83,592 $97,686 $104,840 Race & Ethnicity

White 60.26% 66.96% 69.60%

Native American 0.06% 0.06% 0.05%

African American 16.44% 11.82% 10.77%

Asian/Pacific 3.16% 2.15% 2.28% Employment

2017 Daytime Population 11,688 44,945 55,985

2017 Unemployment 4.56% 5.21% 5.15%

2017 Median Time Traveled 20 21 21

Page 13 Page 14 EXCLUSIVE NET LEASE OFFERING

BROKER OF RECORD

Timothy Speck TX BROKER OF RECORD Marcus and Millichap Direct: (972) 755-5200 License: 432723

Page 15