REPRESENTATIVE PHOTO VALVOLINE GROUND LEASE RAPIDLY GROWING HOUSTON SUBURB | FREEWAY VISIBILITY – SUPER TARGET OUTPARCEL HUMBLE, TX Overview REPRESENTATIVE PHOTO VALVOLINE TOWNSEN BLVD & US HWY 59 FRONTAGE RD, HUMBLE, TEXAS 77338 $1,714,000 5.25% PRICE CAP LEASABLE AREA BUILDING AREA LEASE TYPE 45,545 SF 2,100 SF Ground LEASE TERM YEAR BUILT PARKING 15 Years 2019 42 Spaces Brand new 15-year ground lease with 10% rental escalations every 5 years in base term and each of the three 5-year option periods Outparcel to a Super Target and Kohl’s anchored shopping center Corporate Guarantee – 1,170+ locations in the U.S. – $2.3 Billion in Revenue High Growth - In the next four years there is a forecasted 10% population increase within a 3-mile radius of the subject property 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 $90,000 incomes within a 1-mile radius 2 information. Buyer must verify the information and bears all risk for any inaccuracies. Investment Highlights Contact the CAPITAL PACIFIC is pleased to present the opportunity to acquire Valvoline in Humble, team Texas. The property is located in the heart of Humble's retail corridor and within a Super Target and Kohl’s anchored shopping center, with Costco located across the street. Currently under construction, this 15-year ground lease features 10% rental increases RICK SANNER in every 5 years and is corporately guaranteed by Valvoline. The Valvoline site offers [email protected] excellent access with the ability to stack numerous cars, and easy ingress and egress. PH: 415.274.2709 The site is just off Interstate 69, which sees daily traffic counts of over 136,000 cars. CA DRE# 01792433 The lease is an absolute NNN ground lease featuring zero landlord maintenance or expense responsibilities. THE SUBJECT PROPERTY is located in Humble, a booming Houston suburb located just 15 miles from downtown Houston. According to the Lake Houston Economic Development Partnership, the daytime population in Humble is close to 100,000 due to its draw as the primary retail center in the region. It’s home to the Deerbrook Mall, the only regional mall, and big box shopping such as Costco, Petsmart, Academy, Best Buy, Bed Bath & Beyond and many more; these retailers pull shoppers from a 25-mile radius. REPRESENTATIVE PHOTO IN CONJUNCTION WITH TX LICENSED BROKER: Peter Ellis PH: 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 VALVOLINE HAS OVER 1,170 LOCATIONS inaccuracies. THROUGHOUT THE U.S. 3 Aerial 1960 FARM TO MARKET 1960 69 ELEMENTARY SCHOOL 42,157 LONE STAR COLLEGE- 52,943 VPD NORTH VPD ELEMENTARY SCHOOL HARRIS FARM TO MARKET 1960 HARDY TOLL ROAD MEMORIAL MIDDLE HERMANN SCHOOL NORTHEAST HOSPITAL GOLF HIGH COURSE SCHOOL ELEMENTARY HARRIS SCHOOL GEORGE BUSH COUNTY INTERCONTINENTAL AIRPORT ACADEMY ELEMENTARY SCHOOL SPORTS COMPLEX HOUSTON 173,719 VPD SCHOOL CITY 69 CENTER ELEMENTARY SCHOOL ELEMENTARY 8 8 8 SAM HOUSTON SCHOOL HARDY TOLL ROAD TOLLWAY MIDDLE ACADEMY SCHOOL GOLF 69 COURSE 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 REPRESENTATIVE PHOTO Submarket Overview RETAILERS IN CLOSE PROXIMITY INCLUDE: Target Best Buy Office Depot Costco The Home Depot Old Navy Kohl's TGI Fridays Ulta Beauty Starbucks Red Lobster PetSmart Taco Cabana Marshalls Carter's Party City Shoe Carnival Hobby Lobby Bed Bath & Beyond 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. BUSINESS SUMMARY TOTAL 1-MILE 3-MILES 5-MILES Residential 1,447 40,871 127,221 Population Businesses 350 2,934 4,755 Employees 5,188 32,541 51,728 KEY 1-MILE 3-MILES 5-MILES 5 REPRESENTATIVE PHOTO Income & Expense PRICE $1,714,000 Capitalization Rate: 5.25% Total Rentable Area (SF)1 45,545 STABILIZED INCOME PER SQUARE FOOT Scheduled Rent $1.98 $90,000 Effective Gross Income $1.98 $90,000 LESS PER SQUARE FOOT Taxes NNN $0.00 Insurance NNN $0.00 Total Operating Expenses NNN $0.00 EQUALS NET OPERATING $90,000 1 - The building within the premises is approximately 2,100 square feet. 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 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 Valvoline 45,545 11/01/19 10/31/24 $90,000 $7,500 $90,000 $0.16 $1.98 11/01/24 10/31/29 $8,250 $99,000 $0.18 $2.17 11/01/29 10/31/34 $9,075 $108,900 $0.20 $2.39 Option 1 11/01/34 10/31/39 $9,983 $119,790 $0.22 $2.63 Option 2 11/01/39 10/31/44 $10,981 $131,769 $0.24 $2.89 Option 3 11/01/44 10/31/49 $12,079 $144,946 $0.27 $3.18 TOTALS: 45,545 $90,000 $7,500 $90,000 $0.16 $1.98 1 - The building within the premises is approximately 2,100 square feet. 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. 7 Surrounding Retail TOWNSEN BOULEVARD T O W N S E N B O U L E V A R D SIGN SIGN SIGN NOT A PART SIGN F R O N T A G 69 E R AVAILABLE PAD O 2.4721 ACRES 173,719 A VPD D 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. 8 Tenant Overview Valvoline Instant Oil Change is the 2nd largest quick-lube chain in the U.S. and the 3rd largest quick-lube chain in Canada. The brand is popular for its drive-thru oil changes which is complete in 15 minutes. Each location features Valvoline oils and products, and provides a variety of maintenance services including oil changes, antifreeze changes, smog checks, and other car repair services. Founded in 1986, the company's 1,170 locations serve over 9 million customers annually. Valvoline Instant Oil Change is a division of Valvoline Inc., one of the leading worldwide marketers and suppliers of automotive lubricants and supplies. The company sells its products in over 140 counties making it the 3rd highest selling car motor oil by volume in the DIY market. LOCATIONS 1,170+ IN THE U.S. #3 "Top Oil-Changing Services Franchise" REPRESENTATIVE PHOTO ENTREPRENEUR MAGAZINE 2019 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. 9 Demographics THE WOODLANDS POPULATION 1-MILE 3-MILES 5-MILES SPRING TOMBALL 2010 1,440 34,342 104,040 DAYTON 2019 1,447 40,871 127,221 2024 1,470 44,442 139,356 CYPRESS SUBJECT PROPERTY 2019 HH INCOME 1-MILE 3-MILES 5-MILES HOUSTON Average $90,511 $73,010 $87,554 CITY CENTER BAYTOWN (18 MILES) PASADENA TOP EMPLOYERS IN HOUSTON MSA SUGAR LAND EMPLOYER # OF EMPLOYEES Walmart 37,000 PEARLAND Memorial Hermann Health System 24,108 H-E-B 23,732 University of Texas 21,086 THE AVERAGE HOUSEHOLD Houston Methodist 20,000 INCOME WITHIN A 5-MILE RADIUS IS OVER $106K 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 10 and bears all risk for any inaccuracies. Location Overview HUMBLE, TEXAS DOWNTOWN HOUSTON HUMBLE, located 15 miles from downtown Houston, is the premier ECONOMY HOUSTON is recognized worldwide for retail hub for the northeast suburbs. The daytime population in its energy industry—particularly for oil Humble is close to 100,000 due to its draw as the primary retail and natural gas—as well as for biomedical research and center in the region. It’s home to the only regional mall, Deerbrook aeronautics. Leading in health care sectors and building oilfield Mall and big box shopping such as Costco, PetSmart, Academy, equipment, outside New York City, Houston has more Fortune Best Buy, Bed Bath & Beyond and many more; these retailers 500 headquarters than any other U.S. municipality within its pull shoppers from a 25-mile radius. Due to expansive population city limits. Nicknamed the “Space City”, Houston is a global city, growth in and around Humble, Houston’s largest health system with strengths in business, international trade, entertainment, recently completed a new 123,000 SF five-story tower at the culture, media, fashion, science, sports, technology, education, existing Memorial Hermann Northwest Hospital campus in Humble medicine, and research.