VIEW PROPERTY VIDEO OFFERING MEMORANDUM Hanson’s Corner Hutto, TX | Austin MSA This property is listed in conjunction with Texas-licensed real estate broker Delta Commercial. www.preservewestcapital.com TABLE OF CONTENTS PROPERTY HIGHLIGHTS 1 SITE PLAN 10 PROPERTY OVERVIEW 2 AERIAL 11 FINANCIAL ANALYSIS 3 ABOUT THE AREA 13 RENT ROLL 6 DEMOGRAPHICS 15 TENANT PROFILES 8 Disclaimer Preserve West Capital (“Broker”) has been retained on an exclusive basis to market the property described herein Putnam Daily (“Property”). Broker has been authorized by the Seller of the Property (“Seller”) to prepare and distribute the enclosed Partner information (“Material”) for the purpose of soliciting offers to purchase from interested parties. More detailed financial, title and tenant lease information may be made available upon request following the mutual execution of a letter of intent or 415.445.5107 contract to purchase between the Seller and a prospective purchaser. You are invited to review this opportunity and make an [email protected] offer to purchase based upon your analysis. If your offer results in the Seller choosing to open negotiations with you, you will be CA RE License #01750064 asked to provide financial references. The eventual purchaser will be chosen based upon an assessment of price, terms, ability to close the transaction and such other matters as the Seller deems appropriate. The Material is intended solely for the purpose of soliciting expressions of interest from qualified investors for the acquisition Michael Maffia of the Property. The Material is not to be copied and/or used for any other purpose or made available to any other person Managing Partner without the express written consent of Broker or Seller. The Material does not purport to be all-inclusive or to contain all of the 415.445.5144 information that a prospective buyer may require. The information contained in the Material has been obtained from the Seller and other sources and has not been verified by the Seller or its affiliates. The pro forma is delivered only as an accommodation [email protected] and neither the Seller, Broker, nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries, CA RE License #01340853 members, managers, partners, shareholders, directors, or officers, makes any representation or warranty regarding such pro forma. Purchaser must make its own investigation of the Property and any existing or available financing, and must independently confirm the accuracy of the projections contained in the pro forma. Seller reserves the right, for any reason, to withdraw the Property from the market. Seller has no obligation, express or implied, to accept any offer. Further, Seller has no obligation to sell the Property unless and until the Seller executes and delivers a signed agreement of purchase and sale on terms acceptable to the Seller, in its sole discretion. By submitting an offer, a purchaser will be deemed to have acknowledged the foregoing and agreed to release Seller and Broker from any liability with respect thereto. Property walk-throughs are to be conducted by appointment only. Contact Broker for additional information. www.preservewestcapital.com PROPERTY HIGHLIGHTS SITE • Fully Leased to Robust, Internet-Resistant Tenant Mix with • Adjacent to The Landing @ Hutto and Hutto Co-Op District Mixed Long-Term Leases Use Developments - Scheduled Rental Escalations in 100% of Leases - Slated to Include 1,649+ New Multifamily Residential Units and 310,000+ Square Feet of Commercial Space • Robust Demographics within Established, Rapidly Growing Austin Suburb • Hutto is Austin’s Fastest-Growing Suburb - Population of 89,503 within 5 Mile Radius - 10,600+ New Homes in Development Pipeline - Annual Population Growth Rate of 4.29% within 1 Mile of • Across Street from Hutto High School, Drawing Additional Traffic Property from Students, Parents, & Teachers • Prominent Retail Location within Hanson’s Corner Shopping Center • Less than 2 Miles from Hutto Campus of Temple College & Texas State Technical College - Located Directly Behind High Volume Chick-Fil-A Site; Huge Traffic Generator • Austin MSA is Economic Heart of Central Texas - Anchor Tenants in Surrounding Area Include Target, Costco, - MSA GDP of $159.4 Billion Walmart Supercenter, Sam’s Club, The Home Depot, Lowe’s, Walgreens, H-E-B, & More • Approximately 28 Miles from Downtown Austin PRESERVE WEST CAPITAL | 1 PROPERTY OVERVIEW The Investment Lot Size Hanson’s Corner Shops offers the unique opportunity Approximately 2.734 acres or 119,093 square feet. for an investor to acquire a fully-leased shops building within Austin’s fastest-growing suburb leased to a diverse, Improvements internet-resistant mix of national and regional tenants featuring long-term leases and scheduled rental escalations. Construction was completed in 2019 of a 15,588 square foot retail building demised into 8 retail suites. With excellent access and visibility along US-79 within the Stockade Kitchen | 3,002 square feet Hanson’s Corner shopping center, robust demographics with Great Clips | 1,212 square feet an annual population growth rate of 4.29% within a 1 mile The Baja Zero Ice Cream Shop | 1,068 square feet radius and more than 10,600 homes in the development Hutto Nails | 1,500 square feet pipeline, and an average household income of $123,967 Mod Pizza | 3,027 square feet within 5 miles of the property, an investor will benefit from scheduled increases in income, a diversified income stream, Tiff’s Treats | 1,500 square feet and asset appreciation with this property. Endeavor Physical Therapy | 2,071 square feet AD&E Dental | 2,208 square feet Location Parking The property is located at 210 Ed Schmidt Blvd in Hutto, Texas. There are 124 parking spaces available on site, with additional parking available throughout the shopping center. PRESERVE WEST CAPITAL | 2 FINANCIAL ANALYSIS PRICING PRICE $8,973,000 6.00% CAP Rate Projected Gross Revenue YEAR 1 YEAR 10 YEAR 1 YEAR 10 Scheduled Base Rental Revenue $530,729 $645,309 Expense Reimbursement Revenue $260,883 $321,325 Net Operating Income $538,409 $655,328 Total Potential Gross Revenue $791,612 $966,634 Return 6.00% 7.30% Effective Gross Revenue $791,612 $966,634 Annual Expenses Common Area Maintenance $66,405 $86,643 Note The net income is an estimate and does not provide for all potential costs and expenses (i.e. Insurance $7,326 $9,559 maintenance, repair, etc.) that may be required of the owner. Any reserves set forth herein are Taxes $155,724 $186,105 merely estimates and not based on any experience, physical inspection, or prior knowledge. All prospective purchasers are strongly advised to make an independent investigation to determine Management @ 3% $23,748 $28,999 their estimate of costs and expenses prior to entering into an agreement to purchase. Total Operating Expenses $253,203 $311,306 PRESERVE WEST CAPITAL | 3 FINANCIAL ANALYSIS CASH FLOW PROJECTION Hanson's Corner Cash Flow Projection Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Jan-2022 Jan-2023 Jan-2024 Jan-2025 Jan-2026 Jan-2027 Jan-2028 Jan-2029 Jan-2030 Jan-2031 Jan-2032 Dec-2022 Dec-2023 Dec-2024 Dec-2025 Dec-2026 Dec-2027 Dec-2028 Dec-2029 Dec-2030 Dec-2031 Dec-2032 Net Rentable Area - Sq. Ft. 15,588 Base Rental Revenue PSF/month $2.84 $2.85 $2.88 $3.01 $3.06 $3.12 $3.17 $3.22 $3.31 $3.45 $3.61 Total Operating Expenses PSF/year $16.24 $16.60 $16.97 $17.39 $17.79 $18.20 $18.61 $19.04 $19.49 $19.97 $20.47 Absorption & Turnover Vacancy % - - - - - - - - - - - Vacancy Allowance % - - - - - - - - - - - Rental Revenue Potential Base Rent 530,729 532,811 538,150 562,467 572,681 582,953 592,179 601,621 619,473 645,309 676,128 Absorption & Turnover Vacancy - - - - - - - - - - - Total Rental Revenue 530,729 532,811 538,150 562,467 572,681 582,953 592,179 601,621 619,473 645,309 676,128 Total Expense Recoveries 260,883 266,676 272,709 279,473 285,947 292,574 299,324 306,238 313,575 321,325 329,401 Potential Gross Revenue 791,612 799,487 810,859 841,940 858,628 875,527 891,503 907,859 933,048 966,634 1,005,529 Vacancy Allowance - - - - - - - - - - - Effective Gross Revenue 791,612 799,487 810,859 841,940 858,628 875,527 891,503 907,859 933,048 966,634 1,005,529 Operating Expenses CAM - $4.26 66,405 68,397 70,449 72,562 74,739 76,981 79,291 81,670 84,120 86,643 89,243 Insurance - $0.47 7,326 7,546 7,773 8,006 8,246 8,493 8,748 9,010 9,281 9,559 9,846 Taxes - $9.99 155,724 158,839 162,015 165,256 168,561 171,932 175,371 178,878 182,456 186,105 189,827 Management @ 3% 23,748 23,985 24,326 25,258 25,759 26,266 26,745 27,236 27,991 28,999 30,166 Total Operating Expenses 253,203 258,767 264,563 271,082 277,305 283,672 290,155 296,794 303,848 311,306 319,082 NET OPERATING INCOME 538,409 540,720 546,296 570,858 581,323 591,855 601,348 611,065 629,200 655,328 686,447 Leasing & Capital Costs Tenant Improvements - - - - - - - - - - - Leasing Commissions - - - - - - - - - - - Total Leasing & Capital Costs - - - - - - - - - - - Cash Flow Before Debt Service 538,409 540,720 546,296 570,858 581,323 591,855 601,348 611,065 629,200 655,328 686,447 INTERNAL RATE OF RETURN - 10 Year Hold EXIT SALE CALCULATION - End of Year 10 IRR Price Per SF Cap Year 1 Total Dollars Per SF Capped Value @ 5.75% $11,938,221 $765.86 7.83% $9,363,611 $600.69 5.75% Cost of Sale @ 3.00% (358,147) (22.98) Net Sale Proceeds $11,580,074 $742.88 PRESERVE WEST CAPITAL | 4 4/28/2021 - 5:10 PM FINANCIAL ANALYSIS GENERAL ASSUMPTIONS General Assumptions Analysis Date January 2022 Nadine ohnson Elementary Total Rentable Area 15,588 SF Hutto Ed Schmidt Blvd High School Hutto Memorial Stadium Total Area for CAM 15,588 SF Reimbursement Calculations ) (35,81 AADT General Inflation per Annum 3% General Expense Growth 3% per Annum Real Estate Tax Growth 2% per Annum SITE Management Fee 3% Hanson’s Corner Future Development PRESERVE WEST CAPITAL | 5 RENT ROLL Monthly Annual Current Rent Lease Rental Rental Lease End of Term Tenant Sq.