Two Tenant Starbucks Center 1935 SW Military | San Antonio, TX 78221

FOR SALE | RETAIL

PRESENTED BY: Aryeh Siegel | 310.556.1899 | [email protected]

Presented by: ARYEH SIEGEL 310.556.1899 / [email protected] www.acorn-group.net Table Of Contents

1. PROPERTY INFORMATION 3 All materials and information received or derived from Citadel Realty Advisors its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness , veracity, or Executive Summary 4 accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any Property Description 5 party’s intended use or any and all other matters. Additional Photos 6 Neither Citadel Realty Advisors its directors, officers, agents, advisors, or affiliates makes any representation or warranty, 7 2. FINANCIAL ANALYSIS express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Financial Summary 8 Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such party. Income & Expenses 9 Citadel Realty Advisors will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. Rent Roll 10 10 Year Projection 11 EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. Tenant Profiles 12 Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct Tenant Profiles 13 their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and 14 3. LOCATION INFORMATION reports and consulting appropriate independent professionals. Citadel Realty Advisors makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. Citadel Realty Retailer Map 15 Advisors does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions Aerial Maps 16 regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily Regional Map 17 mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and Location Maps 18 governmental limitations as well as market conditions,vacancy factors and other issues in order to determine rents from or for the property. 4. DEMOGRAPHICS 19 Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a Demographics Map & Report 20 certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by Citadel Realty Advisors in compliance with all applicable fair housing and equal opportunity laws.

We obtained the information above from sources we believe to be reliable. However, you and your tax and legal advisors should conduct your own investigation of the property and transaction 2 1 PROPERTY INFORMATION SECTION 1 | PROPERTY INFORMATION Executive Summary

PROPERTY SUMMARY PROPERTY OVERVIEW Sale Price: $4,480,000 Citadel Realty is pleased to exclusively offer a two tenant retail NNN investment, anchored by a Starbucks drive-thru. The co-tenant is America's Best Contacts & Eyeglasses. Both tenants are on long term leases. In Cap Rate: 5.5% addition, the previous tenant to America's Best Contacts & Eyeglasses, San Antonio National Bank is still under obligation to pay rent until 2024 (see Financial Projection). Moreover, the site is located at strong signalized intersection of SW Military Dr and Interstate 35. This offering provides the investor with the stability NOI: $246,355 of an income stream from two nationally recognized tenants.

Lot Size: 30,231 SF PROPERTY HIGHLIGHTS • Double Net Lease Structure | Minimal Landlord Obligations Building Size: 4,885 SF • Starbucks Recently Executed a 10 Year Lease Extension

Market: San Antonio • Starbucks Equipped with Drive Thru - No Early Termination

• America's Best Lease Guaranteed By National Vision, Inc (NYSE:EYE) with over 1,000 locations and $1.5 Cross Streets: SW Military Dr and Interstate 35 Billion in Assets

• Solid Signalized Intersection on SW Military Drive, With Traffic Counts Exceeds 45,571 VPD+/- Year Built: 2009 • Traffic Counts Exceeding 110,000 Vehicles Per Day on Interstate-35

• 5 Mile Population Surrounding Investment Property Exceeds 264,421

• Adjacent to South Park Mall of San Antonio, Texas • Located in the Area’s Premier Retail Corridor

We obtained the information above from sources we believe to be reliable. However, you and your tax and legal advisors should conduct your own investigation of the property and transaction 4 SECTION 1 | PROPERTY INFORMATION Property Description

PROPERTY DESCRIPTION The property is located along Interstate 35, the state’s primary north/south freeway. I-35 stretches from Laredo on the Texas-Mexico border all the way to Minneapolis. Adjacent to the site is South Park Mall, a 789,465 square foot indoor mall featuring 90 specialty retail stores and restaurants. The mall is anchored by Macy’s, JC Penney, Sears and Bealls. Area tenants include Sam’s Club, HEB Plus, Target, Best Buy, Home Depot, Office Depot, Ashley Furniture, Toys R US, Ross, Dollar Tree, Chase Bank, Panda Express, Burger King, Long John Silvers, McDonalds and many more national and regional tenants.

LOCATION DESCRIPTION San Antonio is the second-largest city in Texas and serves as an economic and cultural gateway to the American Southwest. It was the fifth-fastest growing city in the nation from 2007-2008. Its metropolitan area has a population of 2,031,445 based on the 2008 U.S. Census estimate, making it the 28th-largest metropolitan area in the U.S and third-largest in Texas.

Several major freeways service the city, including Interstates I-10, I-35, I-37, and I- 410; U.S. Routes 87, 90, and 281; and Texas State Highways 16 and 151.

Located northwest of the city center is the South Texas Medical Center, which is a conglomerate of various hospitals, clinics, and research and higher educational institutions.

San Antonio is home to five Fortune 500 companies: Valero Energy Corp, Tesoro Petroleum Corp, Clear Channel Communications, USAA, and NuStar Energy.

We obtained the information above from sources we believe to be reliable. However, you and your tax and legal advisors should conduct your own investigation of the property and transaction 5 SECTION 1 | PROPERTY INFORMATION Additional Photos

We obtained the information above from sources we believe to be reliable. However, you and your tax and legal advisors should conduct your own investigation of the property and transaction 6 2 FINANCIAL ANALYSIS SECTION 2 | FINANCIAL ANALYSIS Financial Summary

INVESTMENT OVERVIEW

Price $4,480,000 Price per SF $917 CAP Rate 5.5% Cash-on-Cash Return (yr 1) 5.5% Total Return (yr 1) $246,355

OPERATING DATA

Gross Scheduled Income $316,412 Other Income $0 Total Scheduled Income $316,412 Vacancy Cost $0 Gross Income $316,412 Operating Expenses $70,057 Net Operating Income $246,355 Pre-Tax Cash Flow $246,355

INCOME SUMMARY PER SF

Starbucks $105,875 $3.50 America's Best Contacts & Eyeglasses $97,185 $3.21 San Antonio National Bank $43,295 $1.43 Expense Reimbursement $70,057 $2.32 Gross Income $316,412 $10.47

EXPENSE SUMMARY PER SF

Cam, Taxes, Insurance $70,057 $2.32 Gross Expenses $70,057 $2.32

Net Operating Income $246,355 $8.15

TENANT UNIT UNIT LEASE LEASE MARKET ANNUAL % OF PRICE NAME NUMBER SIZE (SF) START END RENT RENT GLA PER SF/YR OPTIONS OPTION INCREASES

Starbucks 1,750 03/01/2019 02/28/2029 $105,875 35.82 $60.50 (2) 5 Year 10% Increase America's Best Contacts and Eyeglasses 3,135 12/01/2017 11/30/2026 $97,185 64.18 $31.00 (2) 5 Year 10% Increase San Antonio National Bank $43,295

Totals/Averages 4,886 $0 $246,355 $41.57

San Antonio National Bank is obligated to pay rent on former space (now occupied by America's Best Contacts and Eyeglasses) until 2024. See projections for breakdown. Starbucks Lease is flat for term. Tenant has two 5 yr options where rent increases at 10% for each option and remains Nat for the term.

We obtained the information above from sources we believe to be reliable. However, you and your tax and legal advisors should conduct your own investigation of the property and transaction 10 SECTION 2 | FINANCIAL ANALYSIS 10 Year Projection

1935 SW Military Dr- 10 Year Income Projection

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Tenant Starbucks 105,875 105,875 105,875 105,875 105,875 105,875 105,875 105,875 105,875 105,875 America's Best Contacts and Eyeglasses 97,185 97,185 104,069 106,950 106,950 106,950 106,950 117,645 117,645 117,645 San Antonio Bank* 43,295 44,366 35,745 34,961 34,961 2,913 0 0 0 0 TOTAL RENTAL INCOME 246,355 247,426 245,689 247,786 247,786 215,738 212,825 223,520 223,520 223,520

Other Income Exepnse Reimbursement 70,057 70,057 70,057 70,057 70,057 70,057 70,057 70,057 70,057 70,057 TOTAL GROSS INCOME 316,412 317,483 315,746 317,843 317,843 285,795 282,882 293,577 293,577 293,577

Expenses CAM, Taxes, Insurance 70,057 70,057 70,057 70,057 70,057 70,057 70,057 70,057 70,057 70,057 TOTAL EXPENSES 70,057 70,057 70,057 70,057 70,057 70,057 70,057 70,057 70,057 70,057

Net Operating Income 246,355 247,426 245,689 247,786 247,786 215,738 212,825 223,520 223,520 223,520

* San Antonio National Bank is obligated to pay rent on former space (now occupied by America's Best Contacts and Eyeglasses) until 2024. Seller to credit Buyer $139,807 at close of escow for remaining unpaid rent

America's Best Contacts & Eyeglasses

America's Best Contacts and Eyeglasses is a subsidiary of National Vision, Inc. America's Best Contacts and Eyeglasses has over 600 retail stores across the country, and more locations being added every day, America's Best delivers thousands of quality eyeglasses, contact lenses and safety glasses to our customers every day. Headquartered in metro Atlanta, we operate several of the highest-volume eyeglass manufacturing labs in the country. America's Best carries a wide selection of designer eyeglass frames, contact lenses and eyeglass accessories. Eye exams are available by a professional optometrist*, or you can bring in an outside prescription. Each of our stores is equipped with state-of-the-art optometric equipment to ensure that you get the best eye care available.

National Vision, Inc. is one of the largest optical retailers in the United States, operating 1,000 retail locations in 44 states plus the District of Columbia and Puerto Rico.They are one of the fastest growing U.S. optical chains, having opened 504 stores in the past 10 years and having delivered 65 consecutive quarters of positive comparable store sales growth. They employ over 10,000 employees and their retail divisions include America's Best Contacts & Eyeglasses, Eyeglass World, Vision Centers inside Walmart, Vista Optical inside Fred Meyer and Vista Optical on select military bases. Through their e-commerce division, TENANT HIGHLIGHTS AC Lens, they operate 19 websites selling contact lenses and eyeglasses online. National Vision, Inc. has plans to open 75 new locations annually. NYSE: EYE • Subsidiary of National Vision Inc - (NASDAQ: EYE) - With Over 1,000 Locations Nationally and $1.5+ Billion in Assets • Number of Locations - 1,000 retail locations in 44 states plus the District of Columbia and Puerto Rico

Starbucks

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high- quality arabica coffee. Today, with more than 25,000 retail stores in 75 countries, the company is the premier roaster and retailer of specialty coffee in the world.

Starbucks Corporation is an American coffee company and coffeehouse chain. Starbucks was founded in Seattle, Washington in 1971. Starbucks began as a roaster and retailer of whole bean and ground coffee, tea and spices with a single store in Seattle's Pike Place Market. Starbucks locations serve hot and cold drinks, whole-bean coffee, microground instant coffee known as VIA, espresso, caffe latte, full and loose leaf teas including Teavana tea products, Evolution Fresh juices, Frappuccino beverages, La Boulange pastries and snacks including items such as chips and crackers; some offerings are seasonal or specific to the locality of the store. Many stores sell pre-packaged food items, hot and cold sandwiches and drinkware including mugs and tumblers; select "Starbucks Evenings" locations offer beer, wine and appetizers. Starbucks brand coffee, ice cream and bottled cold coffee drinks are also sold at grocery stores. Today, they serve millions of customers every day with exceptional products and more than 25,000 retail stores in 75 countries. TENANT HIGHLIGHTS

• OWNERSHIP NASDAQ: SBUX • REVENUE $22 Billion • MARKET CAP $88 Billion • S&P RATING A- • LOCATIONS 25,085 • EMPLOYEES 254,000 • HEADQUARTERS Seattle, WA

We obtained the information above from sources we believe to be reliable. However, you and your tax and legal advisors should conduct your own investigation of the property and transaction 13 3 LOCATION INFORMATION SECTION 3 | LOCATION INFORMATION Retailer Map

Two Tenant Starbucks Center

1935 SW Military

We obtained the information above from sources we believe to be reliable. However, you and your tax and legal advisors should conduct your own investigation of the property and transaction 18 4 DEMOGRAPHICS SECTION 4 | DEMOGRAPHICS Demographics Map & Report

POPULATION 1 MILE 3 MILES 5 MILES Total population 15,880 119,051 237,597 Median age 33.4 33.6 32.6 Median age (Male) 31.4 31.8 30.6 Median age (Female) 35.6 35.4 34.6

HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES Total households 4,628 36,053 72,970 # of persons per HH 3.4 3.3 3.3 Average HH income $39,287 $39,912 $37,924 Average house value $71,094 $69,917 $72,329

* Demographic data derived from 2010 US Census

We obtained the information above from sources we believe to be reliable. However, you and your tax and legal advisors should conduct your own investigation of the property and transaction 20