A Subsidiary of GB Auto Services, Inc. Absolute NNN 20-Year Corporate Lease • Annual Increases • Affluent Demographics; $110,000+ AHHI 5-Minute Drive to Johnson Space Center In Association with Peter W. Ellis | A Licensed Texas Broker #289514 OFFERING MEMORANDUM LEAGUE CITY, TEXAS A Subsidiary of GB Auto Services, Inc. OFFERING MEMORANDUM LEAGUE CITY, TEXAS TABLE OF CONTENTS: EXCLUSIVELY LISTED BY: Offering Summary 3 Jeff Lefko Investment Highlights 4 Executive Vice President Auto Repair Service Industry 6 [email protected] Site Plan / Parcel Map 7 844.585.7682 Aerial Overview 10 Regional Map 13 Bill Asher Executive Vice President Tenant Profile 14 [email protected] Area Overview 16 844.585.7684 Demographics 22 In Association with Peter W. Ellis | A Licensed Texas Broker #289514 OFFERING SUMMARY LOUETTA AUTO (GB AUTO SERVICE, INC.) LOCATION Louetta Automotive 632 N. Egret Bay Boulevard League City, TX 77573 OFFERING SUMMARY Price: $2,600,000 Current Net Operating Income (NOI): $156,000 Current Capitalization Rate: 6.00% Net Rentable Area: 4,720 Year Built: 2000 Lot Size (Acres): 0.92 LEASE TERMS (1) Guarantor: GB Auto Service, Inc. Lease Commencement: 2/29/2020 Lease Expiration: 2/28/2040 Lease Term: 20 Years Lease Type: Absolute NNN Roof & Structure: Tenant Responsibility Monthly Rent: $13,000 Annual Rent: $156,000 Rental Increases: 1.75% Annually Renewal Options: Four 5-Year @ 10% Each Option (1) All lease provisions to be independently verified by Buyer during the Due Diligence Period. The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 3 INVESTMENT HIGHLIGHTS LOUETTA AUTO (GB AUTO SERVICE, INC.) y Single-Tenant Louetta Automotive (GB Auto Service, Inc.) with Below Market Rent and Proven Operating History: ο Absolute NNN lease with zero landlord responsibilities ο 20-year initial lease term with four 5-year options ο 1.75% annual increases during the primary term ο Fee simple investment (offering includes both land and building) ο Louetta has created a very strong customer base over their 21+ year operating history in the Houston MSA and they were acquired by GB Auto Service, Inc. in 2020 ο GB Auto Service, Inc. owns and operates 132 auto repair locations including BRAKEmax, Tire Works, Driver’s Edge, and Ramona brands ο GB Auto Service, Inc. is one of the top 10 largest retailers of tires with 116 locations supplying tires and tire related services y Service-Based Internet-Resistant Asset Poised for Long-Term Success and Stamina Through Future Economic Downturns: ο Historically, in a down economy consumers look to repair their cars as opposed to purchase a new car ο $327 billion automotive repair industry ο Over 253 million cars on the road in the U.S. and 80% are repaired professionally over self-repair The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 4 INVESTMENT HIGHLIGHTS LOUETTA AUTO (GB AUTO SERVICE, INC.) y Freeway Accessible: High traffic location along Egret Bay Boulevard with over 30,000 cars per day y Close Proximity to Johnson Space Center (NASA): League City is home to the nation’s space exploration program ο $1.5 billion, 1,620 acre that serves as mission control, research, and astronaut training for NASA that is home to Houston’s Smithsonian Affiliate Museum ο Johnson Space Center employs over 3,000 people (3.5 miles from the subject property) y Affluent Houston MSA Location: 30 minutes to Downtown Houston and 45 minutes to George Bush Intercontinental Airport ο Largest city in Texas and the 4th most populous city in the U.S. with a population of 2.3 million people; Houston MSA has a population of 6.9 million ο 21 million domestic and international tourists visited the city in 2017 ο Home to the 2nd largest concentration of Fortune 1000 companies in the country and ranked the #3 “Metro for Number of Corporate Relocations and Expansions” (Site Selection) ο #1 “America’s Fastest Growing Cities” (Forbes) and #1 “Best City for College Graduates” (Money) ο “Top 3 American Cities of the Future” (Financial Times) The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 5 AUTO REPAIR SERVICE INDUSTRY LOUETTA AUTO (GB AUTO SERVICE, INC.) $327B 253M Automotive repair industry has a projected Cars on 5.8% CAGR (2017 - 2021) the road 25% Of non-warranty YEARS auto repair is 11.5 performed by Typical cars on the dealerships THE STATE OF THE road are a record- high 11.5 years old in the U.S. AUTOMOTIVE REPAIR & MAINTENANCE SERVICE INDUSTRY 17% 75% Increase in the Of non-warranty auto repair is average age of the performed by U.S. vehicle fleet in independent auto the last 10 years. repair shops 60% 80% Increase in the average Of drivers use an auto length of vehicle repair professional for ownership for new/used service over self repair in the last 10 years The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 6 SITE PLAN / PARCEL MAP LOUETTA AUTO (GB AUTO SERVICE, INC.) EGRET BAY BOULEVARD SIGN LED SIGNAGE SUBJECT PROPERTY PROPERTY PARCEL APN: 1335-0000-0003-000 N The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 7 POISED FOR LONG TERM GROWTH AND STABILITY THROUGH ADDITION OF TIRE SALES: GB Auto Services is one of the largest retailers of tires in the country and GB was attracted to purchasing Louetta Auto because of their ability to add tire sales/repairs to an already established and highly profitable auto repair business. LYNDON B. JOHNSON SPACE CENTER 5-Minute Drive from Subect Property One of NASA's largest research 3,000 civil service employees and development facilities and 12,000 contractors $1.5 billion complex; 1,620 acres AERIAL OVERVIEW LOUETTA AUTO (GB AUTO SERVICE, INC.) TUSCAN LAKES - $117,000 AHHI - LEAGUE CITY INTERMEDIATE SCHOOL - 1,069 Students - 32,000 CPD MAIN STREET EGRET BAY BOULEVARD SUBJECT PROPERTY THE CROSSINGS 30,000 CPD RETIREMENT COMMUNITY N The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 10 AERIAL OVERVIEW LOUETTA AUTO (GB AUTO SERVICE, INC.) SPACE CENTER INTERMEDIATE SCHOOL - 978 Students - NASA PARKWAY JOHNSON SPACE CENTER - OVER 3,000 EMPLOYEES - - 1.1 MILLION VISITORS IN 2019 - HOUSTON SPACE CENTER - GENERATES A $118.7 MILLION ANNUAL EGRET BAY BOULEVARD ECONOMIC IMPACT IN THE GREATER HOUSTON AREA - SUBJECT PROPERTY 30,000 CPD THE CROSSINGS RETIREMENT COMMUNITY N The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 11 AERIAL OVERVIEW LOUETTA AUTO (GB AUTO SERVICE, INC.) DOWNTOWN HOUSTON - 30-MINUTE DRIVE TIME - - 10,000 SEATING CAPACITY NASA PARKWAY - 185 HOSPITALS - - 119 SURGERY CENTRES - - 121 ACCESS CENTERS - - 100+ CLIMATE-CONTROLLED HITTING BAYS - 30,000 CPD - FULL-SERVICE RESTAURANT & BARS - - ROOFTOP TERRACE WITH FIRE PIT - - PRIVATE EVENT SPACES & MEETING ROOMS - EGRET BAY BOULEVARD HOUSTON SPACE CENTER JOHNSON SPACE CENTER SUBJECT PROPERTY - OVER 3,000 EMPLOYEES - - 1.1 MILLION VISITORS IN 2019 - - GENERATES A $118.7 MILLION ANNUAL ECONOMIC IMPACT IN THE GREATER THE CROSSINGS HOUSTON AREA - RETIREMENT COMMUNITY DEMOGRAPHICS Population: 1-Mile Radius 6,839 3-Mile Radius 70,912 5-Mile Radius 192,730 Household Income: 1-Mile Radius $101,050 3-Mile Radius $109,421 N 5-Mile Radius $107,816 The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 12 REGIONAL MAP LOUETTA AUTO (GB AUTO SERVICE, INC.) GEORGE BUSH INTERCONTINENTAL AIRPORT (IAH) y 45 million annual passengers y 188 destinations with 29 airlines y 47th busiest airport in the U.S. 4 5 - M I N U T E D R I V E WILLIAM P. HOBBY AIRPORT (HOU) WILLIAM y 14.4 million annual passengers P. HOBBY AIRPORT y Over 60 non-stop destinations y 37th busiest airport in the U.S. 2 0 - M IN U T E DR IVE SUBJECT PROPERTY N The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy. 13 TENANT PROFILE LOUETTA AUTO (GB AUTO SERVICE, INC.) GB Auto Service, Inc., a division of Greenbriar Equity Group LP, is a leading provider of automotive aftermarket repair service with approximately 132 retail locations in the southwestern United States. The company operates under the BRAKEmax, Tire Works, and Ramona brands offering tire replacement, brake repair, and other under-car services including alignment, A/C, exhaust, and oil changes among others. GB Auto Service, Inc. also sells tires through 116 outlets in the southwestern United States and is currently ranked #14 on Modern Tire Dealer's Top 100 Independent Retail Tire Dealers in the U.S. GB Auto Service, Inc. offers an "attractive and differentiated exit alternative" for owners looking to preserve their brand and legacy while ensuring their employees will become part of a larger organization. Louetta Automotive opened its first location in 1999 and now has 11 locations throughout the greater Houston area. Louetta Automotive shops are complete, full-service auto repair shops, serving top quality repair and maintenance services for all makes and models of cars, trucks, SUVs, minivans, and crossovers. They offer landscaped and modern facilities, professional and uniformed staff, same day service in most cases, and a complimentary shuttle with service. Every Louetta location is staffed by ASE L1 Master Technicians to ensure consistent service and high quality every time. in 2020, Louetta was purchased by GB Auto Servives, Inc.