NOR PILOT TRAVEL CENTER ABSOLUTE NNN GROUND LEASE | HIGHWAY FRONTAGE | ESTABLISHED LOCATION WITH HIGH VOLUMES NEW BRAUNFELS, TX Contact the team RICK SANNER [email protected] PH: 415.274.2709 CA DRE# 01792433 IN CONJUNCTION WITH TX LICENSED BROKER: Peter Ellis 210.325.7578 [email protected] This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 2 Investment Summary PILOT FLYING J 4142 LOOP 337, NEW BRAUNFELS, TX 78132 $4,675,325 3.85% PRICE CAP NOI: $180,000 LEASE TYPE: ABSOLUTE NET GROUND LEASE LEASE TERM: 20 YEARS LEASABLE AREA: 14.67 ACRES BUILDING SIZE: 10,453 SF PUBLIC PARKING: 120 SPACES PRIME PARKING: 18 SPACES YEAR BUILT: 2007 DOMINATE LOCATION WITH HIGH SALES VOLUMES This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 3 Investment Highlights THE OFFERING The subject property is strategically located just off of Highway In addition to the location and beneficial lease terms, with over 35, fronting Loop 337, in New Braunfels, TX. This location benefits 750 locations and $20 billion in annual revenue, Pilot Flying J from high traffic counts and excellent highway visibility. Located is North America’s largest operator of travel centers. In addition between San Antonio and Austin, New Braunfels is the second to the strength of Pilot, in October of 2017 it was announced fastest growing city in the U.S. that Warren Buffett-controlled Berkshire Hathaway made a significant investment in the company, acquiring 38.6%. By The subject property offers a buyer the unique opportunity to 2023 Berkshire Hathaway will be the majority stakeholder with acquire a 14.67 acre parcel ground leased to Pilot Flying J well an additional purchase of 41.4%, bringing their total to 80%, below replacement cost (contact broker for details). In addition and the current ownership retaining the remaining 20%. to 9 diesel truck lanes and 8 gasoline pumps, included in the offering is a 10,453 square foot convenience store featuring sub- HIGHLIGHTS tenants McDonald’s, Subway and Cinnabon. The addition of • Large Parcel – 14.67 Acres these three nationally branded restaurants has two important • 20-year absolute NNN ground lease benefits: bringing more customer traffic and visibility to the • 10% rental increases every 5 years site, while simultaneously lowering Pilot’s occupancy costs. • Corporate Guarantee from the largest operator of travel Additional onsite amenities can be found here. centers in North America • Over 750 Locations and $20 Billion in revenue • Second fastest growing city in the U.S. This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 4 Income & Expense PRICE $4,675,325 Capitalization Rate: 3.85% Total Rentable Area (acre)1 14.67 STABILIZED INCOME PER SQUARE FOOT Scheduled Rent $12,270 $180,000 Effective Gross Income $12,270 $180,000 LESS PER SQUARE FOOT Taxes NNN $0.00 Insurance NNN $0.00 Total Operating Expenses NNN $0.00 EQUALS NET OPERATING $180,000 1 - The convenience store within the premises is approximately 10,453 square feet. A portion of the convenience store is subleased to McDonalds, Subway and Cinnabon. There are 9 diesel truck lanes and 8 gas pumps. For more information on additional amenities please click here. This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 5 Rent Roll TENANT INFO LEASE TERMS RENT SUMMARY CURRENT MONTHLY YEARLY MONTHLY YEARLY TENANT NAME SQ. FT. TERM RENT RENT RENT RENT/FT RENT/FT Pilot Travel Centers 639,025 05/07/20 12/31/24 $180,000 $15,000 $180,000 $0.02 $0.28 01/01/25 12/31/29 $16,500 $198,000 $0.03 $0.31 01/01/30 12/31/34 $18,480 $221,760 $0.03 $0.35 01/01/35 12/31/39 $20,697 $248,364 $0.03 $0.39 Option 1 01/01/40 12/31/44 $23,181 $278,172 $0.04 $0.44 Option 2 01/01/45 12/31/49 $25,962 $311,544 $0.04 $0.49 Option 3 01/01/50 12/31/54 $29,078 $348,936 $0.05 $0.55 Option 4 01/01/55 12/31/59 $32,567 $390,804 $0.05 $0.61 TOTALS: 639,025 $180,000 $15,000 $180,000 $0.02 $0.28 1 - The convenience store within the premises is approximately 10,453 square feet. A portion of the convenience store is subleased to McDonalds, Subway and Cinnabon. There are 9 diesel truck lanes and 8 gas pumps. For more information on additional amenities please click here. This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 6 Tenant Overview ABOUT PILOT FLYING J Pilot Flying J is the largest operator of travel centers in North America with more than 750 locations in 44 states and six Canadian provinces. Headquartered in Knoxville, Tennessee, the company was formed in 2010 when Pilot Travel Centers merged with Flying J to create a new company. More than 28,000 people are employed by Pilot Flying J. Located along interstates, the travel centers cater to both professional drivers and motorists selling gas, diesel, convenience store goods and fast food. Pilot Flying J serves more than 1.6 million guests a day and sells more than 7 billion fuel gallons annually. Pilot Flying J Travel Centers offer a wide variety of services to professionals drivers, including parking reservations, restrooms and showers, laundry, wifi, game rooms, western union, check cashing and pay phones among other services. $20 Billion 2019 ANNUAL REVENUE LOCATIONS IN 44 STATES, AND 6 750 CANADIAN PROVINCES GUESTS SERVED 1.6 This information has been secured from sources we believe to be reliable but we make no representations or DAILY warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and 7 bears all risk for any inaccuracies. Million Retail Aerial MORNINGSIDE ELEMENTARY SCHOOL INTERSTATE 35 FRONTAGE ROAD 35 INTERSTATE 35 FRONTAGE ROAD 101,621 VPD 337 27,026 VPD This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed 8 or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. Retail Aerial MEMORIAL ELEMENTARY SCHOOL COUNTY LINE W SAN ANTONIO STREET ELEMENTARY WALNUT SPRINGS ELEMENTARY SCHOOL 101,621 27,026 VPD VPD 35 337 ALTGELT LANE This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed 9 or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. ELEMENTARY Aerial SCHOOL 35 AUSTIN 109,481 VPD 18,852 ELEMENTARY SCHOOL VPD MIDDLE SCHOOL 337 HIGH SANTA SCHOOL ROSA COMAL ACADEMY 46 HOSPITAL COUNTY FAIR NEW GOLF RESOLUTE BRAUNFELS COURSE HEALTH REGIONAL HOSPITAL AIRPORT 21,246 AQUATICS ELEMENTARY ELEMENTARY CENTER SCHOOL VPD SCHOOL COMAL HIGH MIDDLE COUNTY LIBRARY SCHOOL SCHOOL CITY OF HIGH NEW SCHOOL BRAUNFELS CITY OF NEW CONVENTION BRAUNFELS CENTER ELEMENTARY MIDDLE SCHOOL SCHOOL SCHOOL ELEMENTARY 337 SCHOOL 17,630 SPORTS VPD COMPLEX COMAL 35 COUNTY 46 33,607 ELEMENTARY VPD ELEMENTARY SCHOOL ELEMENTARY SCHOOL SCHOOL ELEMENTARY SCHOOL SAN 35 ANTONIO HILTOP RANCH ELEMENTARY AIRPORT SCHOOL ELEMENTARY 106,484 SCHOOL VPD This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 10 Demographics AUSTIN (56 MILES) POPULATION BLANCO 1-MILE 3-MILES 5-MILES 2010 3,792 31,608 54,029 2019 4,722 42,680 74,311 2024 4,722 47,788 84,365 SAN MARCOS 2019 HH INCOME 1-MILE 3-MILES 5-MILES Average $56,628 $87,203 $87,253 Median $43,167 $63,807 $64,380 NEW BRAUNFELS SEGUIN SAN ANTONIO-NEW BRAUNELS MSA TOP EMPLOYERS EMPLOYER # OF EMPLOYEES Lackland Air Force Base 37,000 SAN ANTONIO (30 MILES) Fort Sam Houston-U.S. Army 32,000 H-E-B 20,000 USAA 18,305 THE AVERAGE HOUSEHOLD Randolph Air Force Base 11,000 INCOME WITHIN A 3-MILE RADIUS IS OVER $87K This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and 11 bears all risk for any inaccuracies. Location Overview NEW BRAUNFELS, TEXAS THE COMAL RIVER NEW BRAUNFELS, the second fastest growing city in the U.S., is SAN ANTONIO–NEW BRAUNFELS (or Greater San Antonio) located in Texas Hill Country, conveniently set astride the Interstate-35 is an eight-county metropolitan area in central Texas. corridor between San Antonio and Austin.