OFFERING MEMORANDUM SANDS INVESTMENT GROUP. CAPITAL MARKETS Net Lease Investment. Representa)ve Image

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1 CAPITAL MARKETS Net Lease Investment OFFERING MEMORANDUM Representa)ve Image SANDS INVESTMENT GROUP

2 SIGnnn.com Table of Contents Investment Summary Location Summary Aerial Map Retail Map Investment Overview Lease Abstract Tenant Profile Rent Roll Area Overview Exclusively Marketed By ROB CHANA Lic # DIRECT rob@signnn.com ANDY CHANA Lic # DIRECT andy@signnn.com DAN HOOGESTEGER Lic # DIRECT dan@signnn.com Confidentiality Agreement Sands Investment Group believes the information contained herein to be reliable. However, we make no guarantees, representations or warranties of any kind, expressed or implied regarding this information; including, but not limited to content, accuracy & reliability. Investors should consult a tax and legal advisor, as well as verify ALL information prior to the investment. SANDS INVESTMENT GROUP 2701 OCEAN PARK BLVD, SUITE 140 SANTA MONICA, CA 90405

3 INVESTMENT SUMMARY OFFERING SUMMARY PRICE $1,636,364 COST/ BUILDING SF $ COST/ LAND SF $55.24 NOI $90,000 CAP RATE 5.50% PROPERTY SUMMARY ADDRESS 1817 E. Southeast Loop 323 Tyler, TX COUNTY Smith APN BUILDING AREA 2,000 sf LAND AREA 29,621 sf Sands Investment Group is pleased to exclusively offer for sale a 2,000-square foot single-tenant Starbucks located in Tyler, TX. Starbucks recently renewed their double-net (NN) corporate guaranteed lease, which is set to commence in May This particular property is located in a mature retail market with good visibility along the Southeast Loop 323. The property has a drive-thru, which provides easy in and out access with a parking lot that has a total of 27 parking spaces. This location is the epicenter of a dense retail trade area, and more than 100,000 residents within a 5-mile radius. There are 40 commercial strip centers, ranging in size from 16,000 square feet to 215,000 square feet and over 90% occupied. Tyler has more retail space than typical for a city of its size because it serves as the economic center of East Texas. It is expected that over the next five years, growth will support an additional 520,000 to 580,000 square feet of shopping center-inclined retail. Along with its fast-growing, densely populated market, the property is leased to a firm credit worthy tenant with a corporate backed lease. The trade area flourishes from a strong synergistic mix of national and regional credit tenants including the exclusive Broadway Square Shopping Mall, which is home to over 60 specialty retailers such as JC Penney, Sears, Dillard s, Victoria s Secret and Couch to name a few. BUILT 2003

4 LOCATION MAP

5 AERIAL MAP

6 RETAIL MAP

7 INVESTMENT OVERVIEW INVESTMENT HIGHLIGHTS Starbucks Corporation (NASDAQ: SBUX) with Excellent Credit Rating (S&P: A-/Stable) Low Price Point with a Double Net (NN) Lease Providing Minimal LL Responsibilities (Roof & Structure) DEMOGRAPHICS 1 - MILE 3 - MILE 5 - MILE POPULATION ESTIMATE 7,674 60, ,179 AVERAGE H.H. INCOME $64,737 $63,327 $62,575 TRAFFIC COUNT SE Loop 323 Paluxy Dr. VEHICLES PER DAY 40,000 16,800 Traffic count recorded by ESRI Large Starbucks Sign giving great visibility to the store, situated on Loop 323 adjacent to Paluxy Drive having Traffic Counts of Over 56,800 VPD. Approximately 1-Mile East of Robert E. Lee High school and 2.5-Miles West of University of Texas at Tyler, Combined Enrollment Exceeding 10,000 Students Texas has No State Income Tax Directly Adjacent to Hobby Lobby, Walmart, AT&T Walgreens, Marshalls and Lowes, Tyler has over 3 Million Square Feet of Retail Space SANDS INVESTMENT GROUP INFO@SIGNNN.COM

8 LEASE ABSTRACT LEASE SUMMARY LEASE TERM 7 Years ESTIMATED OPERATING INFORMATION INCOME TENANT PREMISES LEASE COMMENCEMENT Starbucks A building of approximately 2,000 SF in Tyler, TX 12/13/2004 LEASE EXPIRATION 2/28/2022 RENEWAL OPTIONS 2 x 5 Year GROSS POTENTIAL RENT $90,000 EXPENSE REIMBURSEMENT NN EFFECTIVE GROSS INCOME $90,000 LESS EXPENSES NN NET OPERATING INCOME $90,000 INCREASE DATE 3/01/2022 INCREASE Greater of $35 annual psf or FMV LEASE TYPE NN INSURANCE Paid by Tenant MAINTENANCE & REPAIRS Paid by Tenant PROPERTY TAXES Paid by Tenant ROOF & STRUCTURE Paid by Landlord UTILITIES Paid by Tenant SANDS INVESTMENT GROUP INFO@SIGNNN.COM

9 TENANT PROFILE Starbucks Corporation, doing business as Starbucks Coffee, is an American global coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 23,305 stores in 65 countries and territories, including 13,049 in the United States, 1,909 in China, 1,555 in Canada, 1,089 in Japan and 927 in the United Kingdom. Starbucks locations serve hot and cold beverages, wholebean coffee, microground instant coffee, full-leaf teas, pastries, and snacks. Most stores also sell pre-packaged food items, hot and cold sandwiches, and items such as mugs and tumblers. Starbucks Evenings locations also offer a variety of beers, wines, and appetizers after 4pm. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores. From Starbucks' founding in 1971 as a Seattle coffee bean roaster and retailer, the company has expanded rapidly. Since 1987, Starbucks has opened on average two new stores every day. Starbucks had been profitable as a local company in Seattle in the early 1980s but lost money on its late 1980s expansion into the Midwest and British Columbia. Its fortunes did not reverse until the fiscal year of , when it registered a small profit of $812,000. By the time it expanded into California in 1991 it had become trendy. The first store outside the United States or Canada opened in Tokyo in 1996, and overseas stores now constitute almost one third of Starbucks' stores.

10 RENT ROLL TENANT NAME SIZE MONTHLY RENT LEASE TERM SQUARE FOOTAGE % OF TOTAL ANNUAL BASE RENT RENT / SF % OF TOTAL INCREASE DATES RENTAL INCREASE LEASE BEGIN LEASE END OPTIONS Starbucks 2, % $90,000 $ % At Options Greater of $35 annual psf or FMV (2) X 5 year Starbucks 2, % $90,000 $ % TOTAL / WTD AVG 2, % $90,000 $ %

11 TYLER, TX Tyler is the county seat of Smith County, Texas, which takes its name from President John Tyler. The city had a population of 96,901 in 2010, according to the United States Census Bureau. Tyler's 2014 estimated population is 107,405. Tyler is the principal city of the Tyler Metropolitan Statistical Area, with a population of 209,714 in 2010, and the regional center of the Tyler-Jacksonville combined statistical area, with a population of 260,559 in Tyler has the nickname "Rose Capital of the World". It gained this name due to the large quantity of rose bushes processed through the area, along with hosting America's largest rose garden. In 1985, the international Adopt-a-Highway movement originated in Tyler when, after appeals by local Texas Department of Transportation officials, the local Civitan chapter adopted a two-mile stretch of U.S. Highway 69. Tyler is also home to the Caldwell Zoo and Broadway Square Mall. As a regional educational and technology center, Tyler is the host for more than 20,000 higher education students, a College of Engineering, and a University Health Science Center, two regional, billion-dollar hospital systems, and a variety of technology startups.

12 CONFIDENTIALITY AGREEMENT The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Sands Investment Group and should not be made available to any other person or entity without the written consent of Sands Investment Group. This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant s plans or intentions to continue its occupancy of the subject property. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, Sands Investment Group has not verified, and will not verify, any of the information contained herein, nor has Sands Investment Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. By receipt of this Memorandum, you agree that this Memorandum and its contents are of confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose its contents in any manner detrimental to the interest of the Owner. You also agree that by accepting this Memorandum you agree to release Sands Investment Group and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property INFO@SIGNNN.COM 2701 OCEAN PARK BLVD, SUITE 140 SANTA MONICA, CA 90405

13 Exclusively Marketed By: ROB CHANA ANDY CHANA DAN HOOGESTEGER MAX FREEDMAN Lic # Lic # Lic # TX Lic # DIRECT DIRECT DIRECT rob@signnn.com andy@signnn.com dan@signnn.com O:844.4.SIG.NNN F: In Partnership with KW Commercial INFO@SiGNNN.COM 2701 OCEAN PARK BLVD, SUITE 140 SANTA MONICA, CA 90405