CVS PHARMACY - BEAUMONT, TX JAMES CAPITAL ADVISORS, INC. CVS PHARMACY - BEAUMONT, TX MARKETING PACKAGE

CVS PHARMACY 6850 Eastex Fwy Beaumont, TX 77708

CONTENTS PAGE

Investment Summary 03

Finance Memorandum 04

Lease Summary 05

Rent Schedule 06

Retail Aerial 07

Site Plan 09

About the Brand 10

Location Overview 11

CONTACT INFORMATION

tony anderson Director, Net Lease (424) 325-2615

02 6850 EASTEX FWY, BEAUMONT, TX 77708 CVS PHARMACY - BEAUMONT, TX INVESTMENT SUMMARY

Tenant CVS Pharmacy $4,403,346 Street Address 6850 Eastex Fwy PURCHASE PRICE $4.4M City Beaumont 4.90% State TX CAP RATE 4.90% Zip 77708 $215,764 GLA 12,974 SF NET OPERATING INCOME$215K Lot Size 1.42 AC Price / SF $339.40

Year Built 2005 Rent / SF $16.63

True Passive Investment - This property is subject to a brand new 20-year Absolute Net (NNN) lease (18+ years remaining), which provides passive investment to the landlord and holds the tenant responsible for all maintenance and expenses. Recent Lease Extension - CVS extended its lease term for a full 20 years prior to the expiration of its base-term; showing unparalleled commitment to the site. CVS only extends for 20-year leases on their top-performing stores nationwide. No Income Tax State - Texas is one of several states with no state income tax. Investors that live in non-income tax states can benefit from higher post-tax dollars. Investment Grade Tenant with Strong Corporate Guarantee - The tenant’s parent company, CVS Health Corporation, has an S&P credit rating of BBB and is the second largest pharmacy health care provider in the United States. Corporate Lease with Leading National Pharmacy - The lease is with CVS Pharmacy, Inc., a leading national retail pharmacy company with more than 9,800 locations in the United States and over 1,100 walk-in medical clinics.

03 6850 EASTEX FWY, BEAUMONT, TX 77708 CVS PHARMACY - BEAUMONT, TX FINANCING MEMORANDUM

TRUST. EXPERIENCE. EXECUTION. CASH ON CASH RETURN YEAR 1 $ $2,862,175 Our expertise brings extensive lending relationships PROPOSED LOAN 65% Buyer Equity $1,541,171 (35%) and market knowledge to your unique loan Loan Amount $2,862,175 (65%) assignment. % 3.87% James Capital focuses on customized financing INTEREST RATE Debt Service -$161,410 solutions for every deal and client. we assure your Pre-Tax Cash Flow (3.53%) financing assignment stays on track. 30 Years $54,354 AMORTIZATION Principle Reduction $51,552

Total Return $105,906 (6.87%) $ $4,403,346 10 Years TOTAL PURCHASE PRICE TERM DCR 1.34

04 6850 EASTEX FWY, BEAUMONT, TX 77708 CVS PHARMACY - BEAUMONT, TX LEASE SUMMARY

Lease Type Absolute Net (NNN) Real Estate Taxes Tenant Responsible

Type of Ownership Fee Simple Insurance Tenant Responsible

Original Lease Term 20 Years Roof & Structure Tenant Responsible

Commencement Date 6/25/2018 ROFR 20 Days

Lease Expiration 6/30/2038 Lease Guarantor Corporate

Term Remaining 18+ Years Company Name CVS Pharmacy

Increases 3% in Each Option Ownership Public

Options Nine (9), 5-Year Number of Locations 9,828

Recent Acquisition of Aetna - The recent merger between CVS Health and Aetna is expected to create a healthcare behemoth with $240 billion in annual revenue and strong synergies with CVS and Aetna’s 22 million customers. Strategically Located - Strategically positioned near the heavily trafficked State Highway 105 with average daily traffic counts exceeding 85,000 vehicles per day. Site Accessibility - Multiple ingress/egress access points at a signalized intersection that allows for easy access to the property. Surrounding National Retailers - Surrounding national tenants include Walmart, Lowe’s, Target, Hobby Lobby, Starbucks, McDonald’s, Sherwin Williams, Harbor Freight, Burlington, Northern Tool, Academy Sports, etc. Economic Community Drivers - The is a key transportation hub in the state of Texas creating more than 12,000 direct, indirect, induced and related user jobs, according to a 2015 economic impact study. With annual economic activity exceeding $1.8 billion and more than $111 million being contributed to the economy via re-spending and local consumption, the Port of Beaumont’s economic impact can be felt on a national level and global level.

05 6850 EASTEX FWY, BEAUMONT, TX 77708 CVS PHARMACY - BEAUMONT, TX RENT SCHEDULE

PERIOD TERM ANNUAL RENT MONTLY RENT INCREASE CAP RATE

06/25/2018 - 06/30/2038 Base Term $215,763.75 $17,980.31 - 4.90%

06/30/2038 - 07/1/2043 1st Option $222,236.66 $18,519.72 3% 5.05%

07/1/2043 - 06/30/2048 2nd Option $228,903.76 $19,075.31 3% 5.20%

06/30/2048 - 07/1/2053 3rd Option $235,770.88 $19,647.57 3% 5.35%

07/1/2053 - 06/30/2058 4th Option $242,844.01 $20,237.00 3% 5.51%

06/30/2058 - 07/1/2063 5th Option $250,129.33 $20,844.11 3% 5.68%

07/1/2063 - 06/30/2068 6th Option $257,633.21 $21,469.43 3% 5.85%

06/30/2068 - 07/1/2073 7th Option $265,362.21 $22,113.52 3% 6.03%

07/1/2073 - 06/30/2078 8th Option $273,323.07 $22,776.92 3% 6.21%

06/30/2078 - 07/1/2083 9th Option $281,522.76 $23,460.23 3% 6.39%

06 6850 EASTEX FWY, BEAUMONT, TX 77708 CVS PHARMACY - BEAUMONT, TX RETAIL AERIAL

07 6850 EASTEX FWY, BEAUMONT, TX 77708 CVS PHARMACY - BEAUMONT, TX RETAIL AERIAL

08 6850 EASTEX FWY, BEAUMONT, TX 77708 CVS PHARMACY - BEAUMONT, TX SITE PLAN

09 6850 EASTEX FWY, BEAUMONT, TX 77708 CVS PHARMACY - BEAUMONT, TX ABOUT THE BRAND

CVS Pharmacy is the largest retail pharmacy in the United States, filling more than one billion prescriptions each year. CVS retail stores feature thousands of items including organics and naturals, innovations in beauty and health, and healthier-for-you food choices. CVS Pharmacy is subsidiary of the American retail and health care company CVS Health. CVS Health is a pharmacy innovation company helping people on their path to better health.

Through its more than 9,800 retail locations, 1,100+ walk-in medical clinics, a leading pharmacy benefits manager with more than 94 million plan members, a dedicated senior pharmacy care business serving more than one million patients per year, expanding specialty pharmacy services, and a leading stand-alone Medicare Part D prescription drug plan, the company enables people, businesses and communities to manage health in more affordable and effective ways. The company’s unique integrated model increases access to quality care, delivers better health outcomes and lowers overall health care costs.

CVS Health Reports First Quarter Results • Revenues increased 34.8% to $61.6 B • GAAP operating income increased 34.8% to $2.7B • GAAP diluted earnings per share of $1.09 • Adjusted operating income increased 56.8% to $3.6B • Generated cash flow from operations of $1.9 Billion • Adjusted EPS (a) of $1.62

A New Approach to Health Care CVS will open 1,500 HealthHUB stores by the end of 2021 that offer an expanded range of health services and wellness products for everyday care and chronic conditions. HealthHubs offer a wider variety of health care services than traditional CVS pharmacies. Additional features include a wider selection of health products, more personalized pharmacy support, expanded MinuteClinic services, in-store community programming and a concierge team for customer assistance. Available nights and weekends. All from a team of care professionals. All in one place.

10 6850 EASTEX FWY, BEAUMONT, TX 77708 CVS PHARMACY - BEAUMONT, TX LOCATION OVERVIEW

Beaumont, TX Beaumont, Texas is home to astonishing biodiversity and historical significance. Travelers come from long distances to enjoy Southeast Texas’ outdoor opportunities including fishing, hunting, birding, paddling & holding live alligators. On the border of Louisiana but thoroughly Texan, Beaumont embraces both brisket and crawfish. The community was once called home by musicians like George Jones and Janis Joplin, artists like Robert Rauschenberg and actors like G.W. Bailey to have a vibrant entertainment and arts community.

Situated perfectly in the middle of the Texas Gulf coast, Beaumont is a city in the county seat of Jefferson County, Texas, in the United States within the Beaumont–Port Arthur MSA. Locals commonly refer to this area as the , referencing the larger cities in the region - Beaumont, Port Arthur and Orange. Smaller cities include Port Neches, Nederland, Groves, Vidor and Bridge City. Beaumont was founded as a town in 1835. The pioneer settlement had an economy based on the development of lumber, farming, and port industries.

Beaumont, TX

Spindletop Gusher A big change occurred in 1901 with the gusher, which demonstrated that a huge oil field lay underneath and adjacent to the city. The discovery of oil created a new destiny for this farming and lumber town, transforming it into a center of culture and refinement built on the riches of black gold. With Spindletop, several energy companies developed in Beaumont, and some continue. The area rapidly developed as one of the major petro-chemical refining areas in the country.

Colleges & Universities Beaumont houses many educational institutions that ripple immense impact throughout the community. Home to more than 14,000 students, sits on a 270-acre campus just a short drive from Beaumont’s downtown museum and entertainment district. Lamar Institute of Technology (LIT) provides a curriculum consisting of more than 50 degree and certificate programs covering a wide range of career and technical educational opportunities. LIT is just a quick drive from Beaumont’s dining and nightlife opportunities as well as a wide variety of outdoor activities.

Lamar University

11 6850 EASTEX FWY, BEAUMONT, TX 77708 CVS PHARMACY - BEAUMONT, TX LOCATION OVERVIEW

1. 600 Main St, Beaumont, TX 77701 6 MILES FROM SUBJECT PROPERTY

2. Gator Country 21159 FM 365, Beaumont, TX 77705 20 MILES FROM SUBJECT PROPERTY

3. Fire Museum of Texas 400 Walnut St, Beaumont, TX 77701 6 MILES FROM SUBJECT PROPERTY

4. Beaumont Botanical Gardens 6088 Babe Zaharias Dr, Beaumont, TX 77705 9 MILES FROM SUBJECT PROPERTY

5. The McFaddin-Ward Museum 1906 Calder Ave, Beaumont, TX 77701 5 MILES FROM SUBJECT PROPERTY

6. St. Anthony Cathedral Basilica 700 Jefferson St, Beaumont, TX 77701 7 MILES FROM SUBJECT PROPERTY

12 6850 EASTEX FWY, BEAUMONT, TX 77708 CVS PHARMACY - BEAUMONT, TX LOCATION OVERVIEW

01 02 03 Texas Energy Museum Gator Country Fire Museum of Texas The museum was formed in 1987 to tell This amusement park houses over 450 The Fire Museum of Texas is housed in the story of oil through state of the art American alligators, crocodiles, different the historic 1927 Central Fire Station for exhibits. reptiles, as well as various mammals. the City of Beaumont.

04 05 06 Beaumont Botanical Gardens The McFaddin-Ward Museum St. Anthony Cathedral Basilica The gardens are located in the 500 acre The 12,800 sq. ft. house & furnishings The cathedral of the Roman Catholic Tyrrell Park which include the 10,000 sq ft reflect the lifestyle of the prominent family Diocese of Beaumont was raised to the Warren Loose Conservatory. who lived in the house for 75 years. status of a Minor Basilica in 2006.

13 6850 EASTEX FWY, BEAUMONT, TX 77708 CVS PHARMACY - BEAUMONT, TX DEVELOPMENTS

Beaumont Refinery Expansion, Texas ExxonMobil is adding a third crude unit to its Beaumont refinery located in Beaumont, Texas, US, in order to increase the refinery’s crude refining capacity by 250,000 barrels per day (bpd). The final investment decision on the project was taken in January 2019. Construction of the unit is expected to be completed by 2022. The project will employ up to 1,850 people during the construction phase and between 40 and 60 people after completion.

The project will support ExxonMobil’s operations in the Permian region in West Texas and New Mexico. The company’s oil production in the region is expected to be tripled to more than 600,000 barrels of oil-equivalent by 2025. ExxonMobil will also upgrade its infrastructure for supporting operations in the Permian region with an investment of more than $2bn. Beaumont refinery expansion is part of ExxonMobil’s Growing the Gulf Initiative, which began in 2013 to capitalise on new domestic energy supplies.

The new unit will position the Beaumont refinery among the top refineries in the US by expanding its processing capacity by more than 65%. It will be equipped with an atmospheric pipe still, kerosene hydrotreater, diesel hydrotreater and benzene recovery units. Expansion will also allow for the optimisation of the refinery by providing flexibility to process lighter crude oils.

14 6850 EASTEX FWY, BEAUMONT, TX 77708 CVS PHARMACY - BEAUMONT, TX DEMOGRAPHICS

POPULATION 1-Mile 3-Mile 5-Mile

2024 Projection 2,960 38,948 78,157

2019 Estimate 2,991 38,948 77,372

2010 Census 3,406 39,997 79,871

HOUSEHOLDS 1-Mile 3-Mile 5-Mile

2024 Projection 1,222 16,303 32,201

2019 Estimate 1,235 16,120 31,833

2010 Census 1,407 16,566 32,756

Average Income $79,923 $78,273 $72,131

Median Income $55,312 $53,956 $49,267

15 6850 EASTEX FWY, BEAUMONT, TX 77708 JAMES CAPITAL ADVISORS, INC. DISCLAIMER

The information contained in this Marketing Brochure has been obtained from sources believed to be reliable, but the accuracy or completeness of the information contained therein cannot be guaranteed. James Capital Advisors, Inc. & Brian Brockman (“Broker”) has not, and will not, verify any of this information, nor has Broker conducted, nor will it conduct, any investigation regarding these matters. Broker makes no representations, guarantees, or warranties of any nature about the accuracy or completeness of any information provided. The information provided in this brochure is in no way a substitute for a thorough due diligence investigation by Buyer. Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to income and expenses for this property nor the future financial performance of the property. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties as to the size and square footage of the property, the presence of any contaminating substances at the property, the physical condition of the property or compliance with any State, Local or Federal regulations. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to the financial condition or future financial condition of any tenants, nor any future plans or intentions of tenants with regard to the continued occupancy of the property. All parties are aware that Broker has no affirmative obligation to conduct a due diligence examination of the property for any Buyer. Any and all projections or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. Therefore, Broker assumes no legal responsibility for accuracy or completeness of this information, and expressly disclaims all representations, guarantees, or warranties related thereto.

The value of the property to any Buyer depends on numerous factors that must be evaluated by Buyer and Buyer’s legal, tax, construction, and financial advisors. Buyer and Buyer’s advisors should conduct a thorough, independent investigation of the property to determine its suitability for Buyer’s intended usage. This investment, as with all real estate investments, carries a substantial risk. As such, Buyer and Buyer’s legal and financial advisors are strongly advised to request and review all legal and financial documentations related to the property and tenants.

A tenant’s past performance is not a guarantee of future performance. The lease rate stated for some properties may be based on a tenant’s projected sales with little or no record of actual performance or com- parable rents for the area in question. Returns are in no way guaranteed. Tenants may fail to pay the rent or property taxes or any other tenant obligations under the terms of the lease or may default under the terms of such lease. Regardless of tenant’s history of performance, and/or any lease guarantors and/or guarantees, Buyer is responsible for conducting Buyer’s own investigation of all matters related to any and all tenants and lease agreements. Broker is not, in any way, responsible for the performance of any tenant or for any breach or default by any tenant of any terms of any lease agreement related to the property. Further, Buyer is responsible for conducting Buyer’s own independent investigation of all matters related to the value of the property, including, but not limited to, the value of any long-term leases. Buyer must carefully evaluate the possibility of tenants vacating the property or breaching their leases and the likelihood and financial impact of being required to find a replacement tenant if the current tenant should default and/or abandon the property. Buyer must also evaluate Buyer’s legal ability to make alternate use of the property in the event of a tenant abandonment of the property.

CONFIDENTIALITY This Marketing Brochure and the information contained within, is propriety and strictly confidential. It is intended to be used only by the party receiving it from Broker. It should not be made available to any other person or entity without the express written consent of Broker.

RELEASE This Marketing Brochure has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless Broker from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property. In no event shall James Capital Advisors, Inc. or Broker be liable to any party for any direct, indirect, special, incidental, or consequential damages of any kind whatsoever arising out of the use of this Marketing Brochure or any information contained herein.

NON-ENDORSEMENT Broker is not affiliated with, endorsed by or sponsored in any way by any tenant or lessee identified in this Marketing Brochure. The presence of any entity’s logo or name is not intended in any way to indicate affiliation, sponsorship or endorsement by said entity of Broker.

16 FOR INQUIRIES PLEASE CONTACT tony anderson brian brockman Director, Net Lease Broker of Record (424) 325-2615 (513) 898-1551 [email protected] [email protected] CA RE Lic. 01936642 TX RE Lic. 701472 Bang Realty - Texas CORP. Lic. 9007017

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