1604 99,204 CPD 1604 101,873 CPD 1604 CPD CPD 29,828 187,048 REGAL FIESTA TRAILS REGAL CINEMAS — FIESTA TRAILS CORPORATE GROUND LEASE ON 10.35 ACRES SAN ANTONIO, TX CONFIDENTIAL OFFERING MEMORANDUM REGAL CINEMAS — FIESTA TRAILS CORPORATE GROUND LEASE ON 10.35 ACRES CONFIDENTIAL OFFERING MEMORANDUM 12631 Vance Jackson Road San Antonio, TX 78230 presented by KEVIN CATALANI VICE PRESIDENT INVESTMENT SALES 210.841.3237 [email protected] OFFERING MEMORANDUM OFFERING ASHER REILLY PARTNER 210.841.3213 [email protected] REATA REAL ESTATE INVESTMENT SALES 1100 NE Loop 410, Suite 400 San Antonio, TX 78209 TEL 210.930.4111 FAX 210.930.1114 REATAREALESTATE.COM Information contained was obtained from sources believed reliable, However, REATA Real Estate Services, LP, makes no guarantees, warranties or representations as to the completeness or accuracy thereof. The presentation of this project is submitted subject to the errors, omissions and change of price or conditions prior to lease CONFIDENTIAL OFFERING MEMORANDUM — REGAL FIESTA STADIUM 16, SAN ANTONIO or withdrawal. ©REATA Real Estate Services, LP SECTION I EXECUTIVE SUMMARY • Investment Highlights • Lease Abstract • Tenant Profile SECTION II PROPERTY OVERVIEW • Map • Aerials • Zoning Map OF CONTENTS TABLE • Fiesta Trails Shopping Center Site Plan SECTION III TRADE AREA OVERVIEW • San Antonio Market Overview • IH-10 Corridor Overview • South Texas Medical Center Overview • Multi-Family Market Overview • Demographics SECTION IV AGENCY DISCLOSURE CONFIDENTIAL OFFERING MEMORANDUM — REGAL FIESTA STADIUM 16, SAN ANTONIO EXECUTIVE SUMMARY EXECUTIVE REATA Investment Sales and REATA Land have been exclusively retained to offer for sale Regal Cinemas Fiesta Trails (the “Property”) in San Antonio, TX. Regal Fiesta Trails is a 56,000 SF Regal movie theatre situated on a 10.358 acre land tract within Fiesta Trails Shopping Center. Fiesta Trails is an H-E-B-anchored asset located at Interstate 10 and DeZavala Road, one of the most dominant retail intersections in San Anto- nio. Regal Fiesta Trails has over four years remaining on their original 25-year ground lease, offering secure, maintenance-free cash flow while awaiting a potential redevelopment opportunity. This offering presents a unique opportunity to acquire a premiere infill site with an attractive in-place yield, located in the thriving San Antonio market. CONFIDENTIAL OFFERING MEMORANDUM — REGAL CINEMAS, FIESTA TRAILS — SAN ANTONIO 1 INVESTMENT HIGHLIGHTS BOOMING SAN ANTONIO MARKET Regal Cinemas Fiesta Trails is located in a dense, infill corridor of north central San Antonio, TX. San Antonio is the seventh largest city in the United States with a 2014 estimated population of 1,436,697, according to the U.S. Census Bureau. The 2014 estimate represents an 8.23% population increase from the 2010 Census, the largest percentage increase among the top ten U.S. cities. In addition, the San Antonio-New Braunfels MSA (#25 in the U.S.), had the second largest percentage increase in estimated population among the nation’s top 25 MSAs during the same time period. A recent Forbes Magazine article has included San Antonio as part of one of the fastest growing regional economies in the nation, due to its remarkable job and population growth. DOMINANT SAN ANTONIO INTERSECTION SUMMARY EXECUTIVE Regal Cinemas Fiesta Trails is located within Fiesta Trails Shopping Center, a 488,000 SF H-E-B-anchored asset located at the Interstate 10 — DeZavala Road interchange. This intersection is home to several other powerful an- chors including Sam’s Club, Walmart Supercenter and Home Depot, making it one of the city’s most dominant retail nodes. IRREPLACEABLE, INFILL REAL ESTATE The Property is positioned on the southeastern portion of Fiesta Trails Shopping Center, fronting Vance Jackson Road. There are an estimated 107,817 people and 44,454 households within a 3-mile radius of the site. The offering is a rare opportunity to acquire a site of this size in this high density trade area. IDEALLY CONFIGURED LAND TRACT The 10.358 acre site is rectangular in shape with over 500 feet of frontage along Vance Jackson Road. In the event Regal were not to renew their lease, the layout of the site is ideally configured for several redevelopment options. MAINTENANCE-FREE CASH FLOW WITH ATTRACTIVE IN-PLACE YIELD Regal Cinemas Fiesta Trails is currently operating on an original 25-year ground lease with over four years remaining (July 31, 2021 expiration). Regal maintains the entire parcel and is responsible for roof and structure of the building, creating no landlord responsibilities. 12% RENT ESCALATIONS FOR OPTION TERMS Upon expiration in 2021, each of Regal’s renewal options are subject to 12.00% rent increases. In the event they were to exercise their option, this would result in a 90+ basis point increase in yield. CONFIDENTIAL OFFERING MEMORANDUM — REGAL FIESTA STADIUM 16, SAN ANTONIO 2 LEASE ABSTRACT TENANT Act III Inner Loop Theatres, Inc. DBA: Regal Fiesta Stadium 16 LOCATION 12631 Vance Jackson Road PRICING San Antonio, TX 78230 Offering Price $6,035,000 BUILDING SIZE Price PSF to the Land $13.38 56,000 SF Current Ground Rent $422,433.96 LAND AREA Current Cap Rate 7.00% 10.358 acres / 451,173 SF SUMMARY EXECUTIVE YEAR BUILT 1996 RENT SUMMARY Lease Years Effective Dates Annual Base Rent Monthly Base Rent ZONING C-3, C-3 ERZD, C-2 ERZD 21 — 25 Aug. 1, 2016 — Jul. 31, 2021 $422,433.96 $35,202.83 (see Zoning Map, page 11) Extension Terms 26 — 30 Aug. 1, 2021 — Jul. 31, 2026 $473,126.04 $39,424,17 31 — 34 Aug. 1, 2026 — Jul. 31, 2031 $529,901.04 $44,158.42 36 — 40 Aug. 1, 2031 — Jul. 31, 2036 $593,490.00 $49,457.50 41 — 45 Aug. 1, 2036 — Jul. 31, 2041 $664,707.96 $55,392.33 LEASE SUMMARY Tenant Act III Inner Loop Theatres, Inc. Tenant Trade Name Regal Fiesta Stadium 16 Original Lease Term 25 Years Lease Commencement August 1, 1996 Lease Expiration July 31, 2021 Rent Increases 12% Every 5 Years Renewal Options Four, five-year options with 12% rent increases Lease Type Ground Lease Roof & Structure Tenant Responsibility CONFIDENTIAL OFFERING MEMORANDUM — REGAL CINEMAS, FIESTA TRAILS — SAN ANTONIO 3 Regal Entertainment Group, abbreviated These brands benefit from Regal’s REG, is an American movie theater chain leadership position in a stable, mature headquartered in unincorporated Halls industry. Long-term box office trends Crossroads, just north of Knoxville, TN. show annual growth of 4%, while box One of the country’s largest motion office revenue has exceeded $10 billion picture exhibitors, Regal operates 7,310 in each of the last seven years. Regal regmovies.com also generates significant free cash flow screens in 565 theaters in 42 states along reaching approximately $250 million with Guam, Saipan, American Samoa and for the last five years, well ahead of its the District of Columbia as of September competitors. 30, 2016. In 2015, the chain welcomed 217 million visitors. Regal’s business strategy focuses on prudent industry consolidation and Regal develops, acquires and operates partnership opportunities, managing, SUMMARY EXECUTIVE multi-screen theatres primarily in mid- expanding and upgrading existing assets sized metropolitan markets and suburban with new technologies and customer growth areas of larger metropolitan amenities and realizing selective growth markets throughout the United States. opportunities through new theatre The three main brands operated by Regal construction. A public company, Regal are Regal Cinemas, Edwards Theatres, and trades on the New York Stock Exchange United Artists Theatres. as RGC. CONFIDENTIAL OFFERING MEMORANDUM — REGAL CINEMAS, FIESTA TRAILS — SAN ANTONIO 4 PROPERTY OVERVIEW REGAL FIESTA TRAILS CONFIDENTIAL OFFERING MEMORANDUM — REGAL FIESTA STADIUM 16, SAN ANTONIO 5 1604 99,204 CPD 1604 101,873 CPD 1604 PROPERTY OVERVIEW 29,828 CPD 187,048 CPD REGAL FIESTA TRAILS CONFIDENTIAL OFFERING MEMORANDUM — REGAL FIESTA STADIUM 16, SAN ANTONIO 6 1604 1604 99,204 CPD 1604 PROPERTY OVERVIEW CPD 187,048 29,828 CPD REGAL FIESTA TRAILS CONFIDENTIAL OFFERING MEMORANDUM — REGAL CINEMAS,FIESTA STADIUM FIESTA 16, TRAILS SAN ANTONIO — SAN ANTONIO 7 PROPERTY OVERVIEW REGAL FIESTA TRAILS 187,048 CPD 29,828 CPD CONFIDENTIAL OFFERING MEMORANDUM — REGAL CINEMAS,FIESTA STADIUM FIESTA 16, TRAILS SAN ANTONIO — SAN ANTONIO 8 1604 99,204 CPD 1604 101,873 CPD 1604 PROPERTY OVERVIEW CPD CPD 29,828 187,048 REGAL FIESTA TRAILS CONFIDENTIAL OFFERING MEMORANDUM — REGAL CINEMAS,FIESTA STADIUM FIESTA 16, TRAILS SAN ANTONIO — SAN ANTONIO 9 PROPERTY OVERVIEW CONFIDENTIAL OFFERING MEMORANDUM — REGAL CINEMAS,FIESTA STADIUM FIESTA 16, TRAILS SAN ANTONIO — SAN ANTONIO 10 DE ZAVALA RD SUBJECT Regal Fiesta Trails 12631 Vance Jackson SUBJECT ZONING EDWARD RECHARGE ZONE DISTRICT LINE VANCE JACKSON RD PROPERTY OVERVIEW C-3 ERZD NEWOAK PARK C-3 C-2 ERZD INDIAN MEADOWS CONFIDENTIAL OFFERING MEMORANDUM — REGAL CINEMAS,FIESTA STADIUM FIESTA 16, TRAILS SAN ANTONIO — SAN ANTONIO 11 SITE PLAN NORTH R0B R0A AIL TR A FIEST A0F PROPERTY OVERVIEW TRAFFIC LIGHT A0E A0H A0A C0A C0B C0C C0E C0G C0H C0J C0L C0P C0R DE Z D0A D0D D0F D0H D0J D0L A D0N V ALA B0A R O B0X AD B0E R0D B0G FIESTA TRAILS SHOPPING CENTER THE D I S COUNT P A RTY SUPER S TORE SUITE TENANT SF SUITE TENANT SF A0A MARSHALL'S 30,416 SF C0L THE JOINT... THE C HIROPRACTIC PLACE 1,200 SF A0A MARSHALLS 30,416 C0L JOINT CHIROPRATIC PLACE 1,200 A0E OFFICE MAX 23,500 SF C0P EARL OF SANDWICH 2,600 SF B0J A0E OFFICE MAX 23,500 C0P EARL OF SANDWICH 2,600 E0C E0E E0J E0L A0F STARBUCKS 1,490 SF C0R T-MOBILE 2,800 SF B0M E0A E0G A0F STARBUCKS 1,490 C0R T-MOBILE 2,800 B0N A0H LA Z BOY FURNITURE G ALLERIES 28,510 SF D0A MOD P IZZA 2,400 SF B0P A0H LA-Z-BOY FURNITURE GALLERIES 28,510 D0A MOD PIZZA 2,400 B0A STEINMART 37,000 SF D0D MIRACLE NAIL 1,500 SF B0A STEINMART 37,000 D0D MIRACLE NAIL 1,500 B0V B0S X0B B0E TUESDAY MORNING 13,000 SF D0F DR.