SUBJECT PROPERTY Absolute NNN Lease 7-Eleven 10% Rental Increases every 5 Years Ideal 1031 Replacement Property Qualifying for Bonus Depreciation $8,756,870 E-Commerce & Recession Resistant 7-Eleven Averages 43 Year Occupancy on Established 4410 Sunrise Rd, Round Rock, TX (Austin MSA) Locations INTRO 7-Eleven, Inc., the Irving, Texas-based C-Store chain, operates, franchises and/or licenses over 70,000 stores in 17 countries, including approximately 14,000 locations in North America, making it the largest convenience retailer in the world. 2 SECURE NET LEASE SUBJECT PROPERTY OVERVIEW INVESTMENT OVERVIEW 7-ELEVEN ROUND ROCK, TX $8,756,870 NOI 11.5-Year Corporate Absolute NNN Lease, with 10% $363,410.04 Rent Increases every 5 Years, and during the option periods Building Area Excellent Hard Corner Location located at the intersection ±6,051 SF of University Blvd (22,000 VPD) and Sunrise Rd (16,600 VPD), just 0.5 miles east of I-35 (105,000 VPD). Located in Dense Retail Trade Area, at the same Land Area intersection as CVS, Starbucks, and Taco Bell, and ±1.914 AC approximately 0.3 miles from Round Rock Premium Outlets, HEB, IKEA, Chick-Fil-A, In-N-Out, Raising Cane's, and McDonald's. Year Built / Renovated Burger King Franchise subtenant to 7-Eleven on site, 2008 / 2018 complementing convenience store and fuel sales Adjacent to Baylor Scott & White Medical Center Round Rock, a 101-bed, full-service hospital. Nationwide Lease Type Baylor Scott & White has 49,000 employees across 52 hospitals. SUBJECT PROPERTY Absolute NNN 0.5 Miles West of Caldwell Elementary School, a public PK & K-5 grade school that has 805 students. CONTACT FOR DETAILS Occupancy Texas is the World's 9th Largest Economy with a Teddy Leonard Bob Moorhead 100% gross domestic product totalling $1.9T, ahead of Vice President Managing Partner Canada, Brazil, Russia, and South Korea. (512) 387-9770 (214) 522-7210 [email protected] [email protected] Cole Williams This information has been secured from sources we believe to be reliable but Broker Associate we make no representations or warranties, expressed or implied, as to the (214) 689-8160 accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. [email protected] OVERVIEW TENANT OVERVIEW 7-ELEVEN ROUND ROCK, TX 7-Eleven 7-Eleven, Inc. a the premier name in the convenience-retailing REVENUE industry. $36.1 B From their humble beginning as the world's first convenience stores, CREDIT RATING 7-Eleven continues its pursuit of innovative ways to cater to a new, AA- S&P digital-savvy generation of shoppers. Based in Irving, Texas, 7-Eleven operates, franchises and/or licenses more than 72,800 stores in 17 STOCK TICKER countries, including 14,000 in North America. Known for its iconic brands SVNDY such as Slurpee®, Big Bite® and Big Gulp®, 7-Eleven has expanded into high-quality sandwiches, salads, side dishes, cut fruit and protein boxes, TOTAL LOCATIONS as well as pizza, chicken wings and mini beef tacos. 7-Eleven has a legacy 72,800 of innovation. They were the first to provide to-go coffee cups, offer a self-serve soda fountain and operate for 24 hours a day. 7-Eleven offers customers industry-leading private brand products under the 7-Select™ brand including healthy options, decadent treats and everyday favorites at an outstanding value. Customers can earn and redeem points on various items in stores nationwide through its 7Rewards® loyalty program with more than 40 million members, place an order in the 7NOW® delivery app in over 1,300 7-eleven.com cities, or rely on 7-Eleven for bill payment service, self-service lockers and other convenient services. 4 SECURE NET LEASE SUBJECT PROPERTY FEATURE IN THE NEWS 7-ELEVEN ROUND ROCK, TX 7-Eleven Opens Evolution Store in 7-Eleven to Hire Additional 20,000 Prosper, Texas Employees APRIL 09, 2021 (QSR MAGAZINE) ISABELLE GUSTAFSON, SEPTEMBER 22, 2020 (CSTORE DECISIONS) Each 7-Eleven Evolution Store is an experiential testing ground 7-Eleven estimates the organization and independent franchise where customers can try and buy the retailer's latest innovations in owners have hired over 50,000 employees. Now, the company is a pioneering store format. recruiting 20,000 more to work in its 9,000-plus U.S. stores to meet continued demand for 7-Eleven products and services amid the 7-Eleven and Laredo Taco Company, the convenience retailer's taqueria, COVID-19 pandemic. are heading north to Collin County – the first North Texas-area Evolution Store outside of Dallas County. This is 7-Eleven's fourth "Classified as an essential retailer, 7-Eleven kept its doors open all year Evolution Store in the Dallas-Fort Worth area and seventh in the country. long, adding enhanced cleaning procedures and extra safety protocols such as acrylic shields at checkout, floor distance markers, sanitizing Each 7-Eleven Evolution Store is an experiential testing ground where stations and offering employees masks and gloves. Additionally, the customers can try and buy the retailer's latest innovations in a company gives customers the opportunity to utilize disposable tissues pioneering store format. and gloves as they shop for essential pantry items, their morning coffee or an indulgent afternoon snack to recharge. You have to visit an Evolution Store to experience just how much 7-Eleven continues to raise the bar on product quality, selection and the overall shopping experience," says Chris 7-Eleven to Hire Additional 20,000 Employees Tanco, 7-Eleven executive vice president and chief operating officer. Also, during the COVID-19 pandemic, the world’s largest convenience retail chain has scaled frictionless mobile checkout technology to new markets, expanded "Evolution Stores and Laredo Taco Company taquerias have been game-changers delivery from 400 to 1,300 cities, added in-store pick-up through its 7NOW for 7-Eleven, and we will continue to test and iterate to incorporate learnings into delivery app and increased its U.S. store base by more than 300 stores this year. new and existing 7-Eleven stores across the system. We can't wait to see this “I am constantly inspired by our 7-Eleven Heroes — franchisees and employees location's new patio concept become a fun gathering place for Prosper residents." alike — who have stepped up to serve communities as we continue to navigate While all Evolution Stores include a restaurant concept, no two locations are through the complexities of the COVID-19 pandemic,” said 7-Eleven President and exactly alike as the retailer continues to tweak the design and product mix based CEO Joe DePinto. “Hiring 20,000 more store employees allows us to continue to on customer feedback and shopping habits. fulfill our mission to give customers what they want, when and where they want it, whether in stores or at home.” EXPLORE ARTICLE EXPLORE ARTICLE 5 SECURE NET LEASE SUBJECT PROPERTY OVERVIEW LEASE OVERVIEW 7-ELEVEN ROUND ROCK, TX Initial Lease Term 14 Years Rent Commencement 12/14/2018 Lease Expiration 01/13/2033 Lease Type Absolute NNN Rent Increases 10% Every 5 Years Annual Rent Years 1-5 $363,410.04 (12/14/18 - 12/31/23) Annual Rent Years 6-10 $399,757.08 (1/1/24 - 12/31/28) Annual Rent Years 11-15 $439,733.04 (1/1/29 - 1/13/33) $439,733.04 (1/14/33 - 12/31/33) Option 1 $483,706.08 (1/1/34 - 1/13/38) $483,706.08 (1/14/38 - 12/31/38) Option 2 $532,077.00 (1/1/39 - 1/13/43) $532,077.00 (1/14/43 - 12/31/43) Option 3 $585,285.00 (1/1/44 - 1/13/48) 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 SECURE NET LEASE 7 SECURE NET LEASE SUBJECT PROPERTY SUBJECT PROPERTY 4410 SUNRISE RD 8 SECURE NET LEASE OVERVIEW SITE OVERVIEW 7-ELEVEN ROUND ROCK, TX Year Built / Renovated 2008 / 2018 Building Area ±6,051 SF Land Area ±1.914 AC NEIGHBORING RETAILERS • H-E-B • IKEA • JOANN • Ross Dress for Less SUBJECT PROPERTY • JCPenney • Five Below • McDonald's • Chick-fil-A • Vans • Famous Footwear 9 SECURE NET LEASE OVERVIEW LOCATION OVERVIEW 7-ELEVEN ROUND ROCK, TX Demographics 1 Mile 3 Mile 5 Mile Population 9,784 59,775 165,096 Households 4,064 20,413 55,272 Average Household Income US$75,248 US$93,267 US$104,311 Total Household Expenditure $235.05 MM $1.37 B $4.01 B ECONOMIC DRIVERS (NUMBER OF EMPLOYEES) 1. State of Texas (62,853) 7. Austin Independent School District (12,227) 13. IBM Corp. (6,000) 2. The University of Texas at Austin (23,925) 8. St. David's HealthCare Partnership (10,309) 14. U.S. Internal Revenue Service (5,700) 3. H-E-B (13,756) 9. Ascension Seton (9,947) 15. Travis County (5,309) 4. City of Austin (13,531) 10. Samsung Austin Semiconductor (8,935) 5. Dell Technologies (13,000) 11. Apple (7,000) 6. Federal Government (12,795) 12. Round Rock Independent School District (6,345) 10 SECURE NET LEASE OVERVIEW LOCATION OVERVIEW 7-ELEVEN ROUND ROCK, TX Round Rock Texas 133,000 $80,637 Population Median Household Income Round Rock is located 15 miles north of Austin in the Central The city has maintained high quality of life while becoming a major center for Round Rock has a economic growth in Central Texas, with industry clusters in Clean Energy, dozen transportation Texas hill country.