2516 W Parmer Ln. | Austin, TX Jiffy Lube

OFFERING MEMORANDUM 2516 W Parmer Ln. | Austin, TX Jiffy Lube

™

| JIFFY LUBE Austin, Texas | Contents 3 Asset Overview 4 Financial Overview 5 Property Features 6 Tenant Report 8 Area Overview

Exclusive Listing Agent: DALTON BARNES ™ Senior Associate [email protected] KYLE MATTHEWS DIR 214.692.2930 BROKER OF RECORD MOB 925.234.1772 LIC # 01984625 (CA) < 2 > | OFFERINGLIC # MEMORANDUM9005919 (TX) | ASSET OVERVIEW

INVESTMENT HIGHLIGHTS

• Tenant recently extended the base term of the lease early through 2028, for a total of 11 years, showing incredible commitment to this location

• Bond-like, absolute NNN, investment. Perfect for an investor looking for a coupon-clipper with no landlord responsibilities

• Ideal property for investors who are looking to fulfill a 1031 exchange with a truly passive asset

LOCATION HIGHLIGHTS

• Extremely dense population infill +105k people living within 3-miles and is expected to grow by +16% over the next 5 years

• The property is located on the hard signalized-corner of W. Parmer Ln. (±50,000 VPD) and the Northbound service road for the Mopac Expressway (100,000 VPD)

• Highly desirable location. Surrounding retailers include: H-E-B Grocery, Panda Express, Wendy’s, Chick-fi-A, Harbor Freight Tools, Taco Cabana, FedEx, Bank of America, BBVA, Subway and GNC

• The property performs Texas state vehicle inspections (a requirement for car registration in Texas) and is located 0.5 miles from the only Texas Department of Transportation office for 8 miles to the north or 12 miles to the south

• Austin, TX was deemed the fastest growing MSA in 2016 in by Forbes due to the rapidly expanding economy and very affordable cost of living

TENANT HIGHLIGHTS

• Operated by Heartland Automotive, Inc. - the largest franchisee in the Jiffy Lube system with over 530 locations across the US

• One of the few retail tenants that offers both an e-commerce and recession proof investment

• Environmental Indemnification - Per the lease, tenant protects landlord from responsibility of environmental contamination by tenant** **Buyer to confirm

| JIFFY LUBE Austin, Texas | < 3 > FINANCIAL OVERVIEW

2516 W Parmer Lane Austin, TX 78727 ANNUALIZED OPERATING DATA List Price...... $2,219,496 Monthly Rent Annual Rent Rent/SF Cap Rate CAP Rate - Current �� 5.75% Current $10,635 $127,621 $70.31 5.75% Gross Leasable Area �� ± 1,815 SF Option 1 $11,698 $140,383 $77.35 6.33% Lot Size ...... ± 0.55 Acres (23,740 SF) Option 2 $12,868 $154,421 $85.08 6.96% Year Built �� 1995

Tenant Summary Tenant Trade Name Jiffy Lube

Type of Ownership Fee Simple

Lease Guarantor Heartland Automotive, Inc.

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 20 Years

Lease Commencement Date 8/16/1995

Rent Commencement Date 8/16/1995

Lease Expiration Date 12/31/2028

Term Remaining on Lease ± 11.25 Years

Increases 10% increases in the option periods

Options Two, 5-Year Options

< 4 > | OFFERING MEMORANDUM | PROPERTY FEATURES

THE OFFERING

Property Name Jiffy Lube 2516 W Parmer Ln Property Address Austin, TX 78727 Mopac Expressway ±100,000 VPD Assessors Parcel Number 02641301320000

Site Description

Number of Stories 1

Year Built 1995

Gross Leaseable Area (GLA) ± 1,815 SF W Parmer Ln ±50,000 VPD Lot Size ± 0.55 Acres (23,740 SF)

Type of Ownership Fee Simple

Parking ± 6 Surface Spaces

Parking Ratio 3.31 : 1,000 SF

Landscaping Professional

Topography Generally Level

Construction

Framing Steel

Exterior Masonry

Parking Surface Asphalt PARCEL MAP

Roof Hip

| JIFFY LUBE Austin, Texas | < 5 > TENANT REPORT

Company Name Jiffy Lube International, Inc. Parent Company Trade Name Royal Dutch Shell PLC (ADR) Ownership Private No. of Locations ± 2,000 No. of Employees ± 6,538 Headquartered Houston, Texas Website www.jiffylube.com Year Founded 1979

JIFFY LUBE A leading provider of oil changes and a subsidiary of Shell Oil Company, Jiffy Lube boasts more than 2,000 outlets led throughout North America that are all independently owned by operators. Besides oil changes, Jiffy Lube facilities provide maintenance services for air conditioning, fuel systems and transmissions. At some of its locations it also performs inspections and emissions testing, repairs windshields and rotates tires. Serving about 22 million customers annually, Jiffy Lube caters to several fleet management firms such as Donlen, Emkay, Voyager and PHH. Heartland Automotive Services, Inc. is a franchisee company that operates over 530 Jiffy Lube locations in the United States.

STRATEGY Jiffy Lube focuses on its four key areas of preventative maintenance service: change, inspect, check/fill, and clean. The company’s extensive technician training program has made Jiffy Lube an Automotive Service Excellence (ASE) Accredited Training Provider. With a focus on reuse, Jiffy Lube makes a point to collect more used oil than any of its competitors in North America. The oil is then refined and used for making concrete, generating electricity, and heating asphalt to pave roads.

GEOGRAPHIC OUTREACH Jiffy Lube has an approximate 2,000 franchised service centers in North America and Canada.

< 6 > | OFFERING MEMORANDUM | SURROUNDING TENANTS

| JIFFY LUBE Austin, Texas | < 7 > AREA OVERVIEW AUSTIN, TEXAS Located in Central Texas in the foothills of Texas Hill Country, Austin is the state capital and the cultural and economic center of the Austin-Round Rock metropolitan area. Regarded by most as the best choice in Texas, the Austin area provides residents a balance of a strong economy, good education, attractive housing, a pleasant climate, and plenty to do.

Visitors are welcome to indulge in the rich cultural heritage, plentiful entertainment amenities, unique attractions and outdoor recreation opportunities of this bustling, albeit laid-back, capital city. Surrounded by beautiful natural settings and abundant sunshine, Austin offers an unparalleled quality of life for its low cost of living.

< 8 > | OFFERING MEMORANDUM | TEXAS HILL COUNTRY Arguably the most beautiful area in Texas, the Texas Hill Country is a 25-county region of Central and South Texas that extends from just north of Austin down south to San Antonio. Central to Texas, the Hill Country is considered the heart and soul of the state. With over 14,000 square miles of hills, lakes, live oak trees and winding roads, this region attracts millions of people each year, be it for a weekend getaway or a vacation.

Located deep in the heart of this uniquely charming area, the countryside is reminiscent of the wine growing regions of central Italy and the Rhone Valley in France. An array of visually stunning vineyards and wineries are scattered throughout the Hill Country, from downtown Austin to Fredericksburg and Lampasas to New Braunfels. Given that it is one of the fastest growing wine-producing regions in the country, the Hill Country has emerged as one of the top wine destinations in the world, drawing more than five million visitors each year to the Texas Hill Country Wineries.

AUSTIN DEMOGRAPHICS

POPULATION 1-Mile 3-Mile 5-Mile 2022 Projection 19,163 108,929 331,779 2017 Estimate 17,664 99,973 303,637 2010 Census 15,725 86,666 261,560 2000 Census 13,884 76,198 219,627 Growth 2017 - 2022 8.49% 8.96% 9.27%

HOUSEHOLDS 1-Mile 3-Mile 5-Mile 2022 Projection 9,262 50,798 139,981 2017 Estimate 8,538 46,461 127,789 2010 Census 7,594 40,090 109,654 Growth 2017-2022 8.48% 9.34% 9.54% INCOME 1-Mile 3-Mile 5-Mile 2017 Est. Average $77,813 Household Income $74,348 $78,621

| JIFFY LUBE Austin, Texas | < 9 > UNIVERSITY OF TEXAS AT AUSTIN Also referred to as UT Austin, the University of Texas at Austin is the #1 BEST PLACES TO LIVE flagship school of the University of Texas System, which includes nine - U.S. NEWS & WORLD REPORT academic universities and six health institutions statewide. Located about one mile from the Texas State Capitol in Austin, this public research university has the seventh-largest single-campus enrollment with over 51,000 students and 3,000 teaching faculty. More than 100 undergraduate #1 GROWING BUSINESSES -FORBES and 170 graduate degrees are available to students as well as dozens of top-ranked programs with a proven record of success.

UT Austin continues to expand its facilities on campus and thanks to its ND proud alumni base of more than 482,000, notably Michael Dell, the new 2 SAFEST MAJOR CITY - THE FBI Dell Medical School welcomed its first class of 50 students in June 2016. An abiding symbol of the spirt of Texas, the university cultivates economic and social progress as a leading center of knowledge and innovation.

< 10 > | OFFERING MEMORANDUM | BUSINESS CLIMATE Texas consistently ranks as one of the nation’s most favorable business climates based on its low tax burden and competitive regulatory environment. Austin’s reputation in key industries such as technology, life sciences and advanced manufacturing has shaped a professional climate that attracts 1 2 new businesses from all over the world.

As a place that has established itself as a world leader of technology, innovation, energy, and workforce development, Austin is a hotbed for creativity and commerce that is spearheading the region’s business State of Texas University of Texas at Austin expansion and overall growth. Because people want to take advantage of the innovative, entrepreneurial spirit, the capital city continues to be a magnet for business, specifically high tech and small business startups. 3 4 Austin is well-positioned to do business with major markets in the United States and Latin America, allowing it to maintain a global competitive advantage. Consequently, the city also features national and global corporations amongst a strong network of independent, unique, locally owned firms and MAJOR EMPLOYERS organizations. Dell City of Austin SILICON HILLS In addition to spurring the development that has so greatly expanded this major center for high tech, a proliferation of technology companies gave rise to the region’s nickname: “the Silicon Hills”. High tech industries in the area include enterprise software, semiconductors, corporate R&D, biotechnology, gaming and a variety of startup companies. Meanwhile, companies with operations in the Silicon Hills include 3M, Silicon Labs, Advanced Micro Devices, Apple, Dropbox, eBay, PayPal, Google, Qualcomm, Oracle, Electronic Arts and Samsung Group. Upon accepting a $1.4 million grant to build a downtown office, Facebook arrived in the capital city in 2010. Austin’s Facebook office kept a relatively low profile until 2016 when the company filed building permits to expand its downtown office.

With thousands of graduates each year from the engineering and computer science programs at the University of Texas at Austin, Austin has a steady source of employees that are stimulating the technology and defense industry sectors. UT Austin brings an estimated $60 million in grants from the National Institutes of Health to the city. When added to the recent opening of its new Dell Medical School in mid-2016, which promises to bring even more intellectual property, lab space and grant money, it’s apparent that Austin has all the makings to become the country’s next big biotech hub. THE BIG PICTURE AUSTIN, TX UNITED STATES UNEMPLOYMENT RATE 3.5% 6.3% RECENT JOB 2.8% 1.2% GROWTH MEDIAN FAMILY $66,474 $64,585 INCOME

Economic Development OPPORTUNITY AUSTIN 3.0 Through the enactment of a friendly attitude into a business climate, the Austin region Opportunity Austin a regional five-county strategy for job creation through asserts that not only will it welcome new businesses, but it will also improve them. The city recruitment and expansion in Central Texas. Working collaboratively with is a one-of-a-kind place, unique to Texas and to the whole country. regional partners, the Chamber promotes the Greater Austin area as a cost To effectively support and recruit business, the City’s Economic Development Department competitive region for business within key industry segments. Originally (EDD) strives to create a sustainable cultural and economic environment that enhances launched in 2004, Opportunity Austin is now in its third phase called Austin’s strengths. Along with supporting local initiatives through cultural arts, music, Opportunity Austin 3.0; This current five-year phase sets out ventures for downtown redevelopment, economic and small business programs, the EDD has priorities, including boosting economic diversification, deepening the talent integrated a core global focus to assist local businesses with international expansion pool and keeping the Greater Austin region attractive to entrepreneurs, and trade and increase jobs and investment in Austin. Via traditional and equity-based business leaders and site selectors through regional collaboration. approaches, the EDD is leading global business expansion, urban regeneration, small business development, cultural arts and music efforts by fostering novel programs INNOVATE AUSTIN designed to increase the prosperity of Austin’s diverse communities and businesses. Innovate Austin is an economic development plan fixated on making Austin the top region to establish and grow a technology and innovation based Much like the EDD, the Austin Chamber of Commerce is heading development initiatives to business. By providing thought-leadership and strategy, Innovate Austin promote regional economic growth, namely Opportunity Austin and Innovate Austin. The advocates for the innovation community. The development plan’s primary Chamber of Commerce has the capacity so support business growth and aims to provide focus is on attracting and retaining talent, increasing capital, growing and tools and services that will assist with making data-driven decisions when businesses are diversifying the innovation ecosystem and leveraging local universities for considering relocating, starting or expanding in the Greater Austin region. increase commercialization.

< 12 > | OFFERING MEMORANDUM | CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offering Memorandum contains select information pertaining to the business and affairs of Jiffy Lube located at 2516 W Parmer Ln, Austin, TX 78727 (“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.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

| JIFFY LUBE Austin, Texas | < 13 > 2516 W Parmer Ln. | Austin, TX Jiffy Lube

EXCLUSIVE LISTING AGENT:

DALTON BARNES Senior Associate [email protected] DIR 214.692.2930 MOB 925.234.1772 LIC # 01984625 (CA)

™ KYLE MATTHEWS BROKER OF RECORD LIC # 9005919 (TX) < 14 > | OFFERING MEMORANDUM | EXCLUSIVE LISTING AGENT: