EXCLUSIVE OFFERING $5,658,000 / 7.25% CAP Starbucks DRIVE THRU AT&T Wireless ORANGE LEAF FROZEN YOGURT JAMES AVERY

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1 Future Home of Independence Plaza Doctor s Hospital of Laredo Dr. ME Malakoff Elem. School United Day School SUBJECT PROPERTY PRIOR TO PANDA EXPRESS EXPANSION EXCLUSIVE OFFERING $5,658,000 / 7.25% CAP JOE CAPUTO joe@exp1031.com BOB MOORHEAD bob@exp1031.com RUSSELL SMITH russell@exp1031.com property. Brand new construction. Pad site of 147,000 SF Power Shopping Center, Independence Plaza. tenant mix / lease structure. Net leases beginning in 2013 with Starbucks (10 years), AT&T Wireless (10 Years), Orange Leaf Frozen Yogurt (5 Years), and James Avery (10 Years), each with 10% rental increases every 5 years during primary term and option periods. location. At Intersection of Loop 20 (28,000 Cars / Day) and McPherson Road (15,750 Cars / Day). Just 1.2 miles east of Interstate 35, the NAFTA designated highway. Laredo is #1 inland port on US-Mexico Border and #7 for imports into the US. Laredo oversees 40% of all US-Mexico trade, $ billion in trade in fiscal Laredo is #1 railroad interchange point on US-Mexico Border. Laredo is home to over 40 million square feet of logistical & distribution space (Milo Distribution Center). Over 12,000 daily commercial truck crossings and 1,000 plus daily rail car crossings. Location carries the lowest unemployment rate along the US-Mexico Border. Laredo boasts the #1 Wal-Mart (based on sales per SF) in the United States.

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3 Table of contents Disclaimer PAGE 1: PAGE 2: PAGE 3: PAGE 4: PAGE 5: PAGE 6: PAGE 7: PAGE 8-9: PAGE 10-12: PAGE 13-14: PAGE 15: PAGE 16-17: PAGE 18: COVER PROPERTY PHOTO TABLE OF CONTENTS DISCLAIMER INVESTMENT TENANT OVERVIEWS INCOME / EXPENSE PROFORMA RENT ROLL LEASE ABSTRACTS SITE PLANS PROPERTY PHOTOS AERIAL PHOTOGRAPHS LOCATION OVERVIEW LOCATION MAPS DEMOGRAPHICS SUBJECT PROPERTY Disclaimer EXP Realty Advisors, Inc. ( Agent ) has been engaged as an agent for the sale of the property located at Bob Bullock Loop & McPherson Road, Laredo, Texas by the owner of the Property ( Seller ). The Property is being offered for sale in an as-is, where-is condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. The enclosed materials are being provided solely to facilitate the prospective investor s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Agent nor the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein. Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller. Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller s obligations hereunder have been satisfied or waived. By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller and Agent. 3

4 Investment overview TENANT OVERVIEW PRICE: $5,658,000 CAP RATE: 7.25% NET OPERATING INCOME: $410,220 BUILDING AREA: LAND AREA: 10,000 + Square Feet Acres YEAR BUILT: 2013 OWNERSHIP: Fee Simple Interest OCCUPANCY: 100% SUBJECT PROPERTY Tenant overview STARBUCKS CORPORATION Starbucks Corporation is an international coffee and coffeehouse chain based in Seattle, Washington, United States. Starbucks is the largest coffeehouse company in the world, with 17,133 stores in 49 countries, including around 11,000 in the United States, followed by nearly 1,000 in Canada and more than 800 in Japan. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, snacks, and items such as mugs and coffee beans. As of September 27, 2009, the Company operated approximately 2,650 drive-thru locations, representing approximately 35% of Company-operated stores in the United States and Canada combined. AT&T WIRELESS The second-largest wireless voice and data carrier in the US by subscribers (after Verizon), AT&T Mobility has a subscriber base of more than million mobile users spanning most major metropolitan areas. The company, which accounts for more than one-third of parent company AT&T's business, provides a full range of wireless voice, message, and data services to consumer and enterprise customers via its network. AT&T Mobili8ty's services for businesses, government agencies, and educational institutions include , wireless Internet access, and private wireless networking. AT&T Mobility provides extensive international network coverage for its subscribers in about 190 countries. ORANGE LEAF FROZEN YOGURT AVAS, LLC Orange Leaf Frozen Yogurt is based in Oklahoma city. They were founded in 2008 and began franchising in the following year. Each Orange Leaf location offers self-serve frozen yogurt with a rotating selection of flavors and a toppings bar. In 2011 with 100+ functional locations, Orange Leaf decided to offer franchising opportunities outside of the United States by branching out to Australia. Currently, Orange Leaf has approximately 304 locations with 110 locations currently in the works system wide sales topped $100 million. JAMES AVERY Headquartered in the Texas Hill Country in Kerrville, Texas, James Avery is an independent jewelry maker. They offer fine jewelry designs in sterling silver, 14K and 18K yellow and white gold, and gemstones for ladies and men, and maintain 1100 designs and 14,000 separate jewelry items in their active product line. James Avery designs, manufacture, market and sell all their products. The strategic goals of the company is to maintain a 3 prong effort for reaching the customer; through retail stores, mail order, and internet. James Avery currently has 5 manufacturing plants one each in Hondo, Fredericksburg, and Kerrville, Texas and two in Comfort, Texas. Their retail stores are located primarily in the South and Southeast US and number approx. 70 locations. 4

5 INCOME / EXPENSE PROFORMA Sale Price $5,658,000 Price Per Square Foot $566 Capitalization Rate 7.25% Total Rentable Area (Square Feet) 10,000 Potential Gross Revenue Price/SF Scheduled Base Rental Revene $41 $412,425 CAM Reimbursement Revenue Net Real Estate Tax Reimbursement Revenue Net Insurance Reimbursement Revenue Net Administrative Reimbursement Revenue Net Efffecive Gross Revenue $41 $412,425 Operating Expenses CAM Expenses Net Real Estate Taxes Net Insurance Net Vacancy/Management (3% of Orange Leaf Annual Rental Revenue) $2,205 Equals: Net Operating Income $410,220 5

6 Rent roll Tenant Orange Leaf DBA AVAS, LLC (Unit A) James Avery (Unit C) AT&T Wireless DBA New Cingular Wireless PCS, LLC (Unit D) Starbucks Drive Thru (Unit E) Square Feet Lease Term GLA Begin End Approx Years Remain Begin Rent Monthly PSF Rent Annually PSF Lease Type Options / Notes 2,100 21% 03/ / Current $6, $2.92 $73,500 $ , 5 year options $6, $3.21 $80,850 $38.50 $7, $3.53 $88,935 $ ,400 14% 04/ / Current $3, $2.67 $44,800 $32.00 NN 3, 3 year options 6-10 $3, $2.75 $46,200 $33.00 Option $4, $2.92 $49,000 $35.00 Option $4, $3.08 $51,800 $37.00 Option $4, $3.25 $54,600 $ ,500 45% 02/ / Current $17, $3.85 $208,125 $46.25 NN 2, 5 year options 6-10 $18, $4.02 $217,125 $48.25 Option $19, $4.44 $239,625 $53.25 Option $21, $4.85 $262,125 $ ,000 20% 02/ / Current $7, $3.58 $86,000 $43.00 NN 4, 5 year options 6-10 $7, $3.94 $94,600 $47.30 Option $8, $4.34 $104,060 $52.03 Option $9, $4.77 $114,460 $57.23 Option $10, $5.25 $125,920 $62.96 Option $11, $5.77 $138, TOTALS 10, % Current $34, $13.02 $412,425 $156 INDEPENDENCE PLAZA 6

7 LEASE ABSTRACTS ORANGE LEAF Lessee: AVAS, LLC Primary Term: November 15, 2012 March 31, 2018 Early Termination: None Options: Two, Five-Year Options. Extension Notification: 120 days prior to the expiration of the existing term. Common Area Maintenance: Prorata Share. No cap on increases in CAM. 15% Admin Fee. Insurance: Insurance included as part of CAM reimbursements. Taxes: Prorata Share. Tenant shall not pay margin tax / franchise tax. Exclusive Use: Yes Exclusive Parking: None JAMES AVERY LEASE ABSTRACT Lessee: James Avery Craftsman, Inc. Primary Term: June 8, 2012 April 30, 2023 Early Termination: None Options: Three, Five-Year Options. Common Area Maintenance: Prorata Share. Cap of 5% on any increase in Controllable CAM per year. 10% Admin Fee. Insurance: Insurance Included as part of CAM reimbursements. Taxes: Prorata Share. Tenant shall not pay margin tax/franchise tax. Exclusive Use: No Exclusive Parking: None AT&T WIRELESS LEASE ABSTRACT Lessee: New Cingular Wireless PCS, LLC, A Delaware limited liability company Primary Term: June 8, February 28, 2023 Early Termination: None Options: Two, Five-Year Options. Extension notification: at least 6 months prior to the expiration of the existing term. Common Area Maintenance: Prorata Share. Cap of 5% on any increase in CAM per year. 10% Admin Fee excluding utilities. Insurance: Prorata Share Taxes: Prorata Share Exclusive Use: Yes Exclusive Parking: 5 spaces STARBUCKS LEASE ABSTRACT Lessee: Starbucks Corporation Primary Term: June 8, February 28, 2023 Early Termination: Early Termination if sales are less than 700,000 in 6th year. Termination fee unamortized TI/TC. Options: Four, Five-Year Options. If Tenant elects to exercise its option, tenant shall give notice at least 90 days prior to the expiration of the existing term. Common Area Maintenance: Prorata Share. Cap of 5% on any increase in CAM per year. 10% Admin Fee excluding utilities. Insurance: Prorata Share Taxes: Prorata Share. If change of ownership occurs for the third time during the Initial Term, and as a direct result the Real Property Taxes increase, Tenant shall not be obligated to pay any portion of such increase. Tenant shall not pay margin tax/franchise tax. Exclusive Use: Yes Exclusive Parking: None 7

8 Site plan - McPherson Place 8

9 Site plan - Independence plaza 9

10 PROPERTY PHOTO 10

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12 PROPERTY PHOTO 12

13 Aerial photograph 13

14 Aerial photograph New Laredo United High School Eastpoint Industrial Park Future Home of Milo Distribution Center Independence Plaza Doctor s Hospital of Laredo 14

15 LOCATION OVERVIEW IMMEDIATE TRADE AREA The subject property is located on the southeast corner of the stop-lit intersection of Loop 20 (Bob Bullock Loop) (28,000 cars / day) and McPherson Road (15,750 cars / day) in Laredo, Texas. Loop 20 is a highway loop extending from the World Trade International Bridge at its northern point to south of the city. In recent years, much of Laredo s growth has been along Loop 20, with the construction of the San Isidro Ranch development, a new passenger terminal at Laredo International Airport, the Laredo Energy Arena, the new campus of Texas A&M International University, and Doctors Hospital being the most prominent projects. McPherson Road parallels Interstate Highway 35 to the east connecting residential and commercial areas of northeast Laredo to the city center. The subject property is a corner outparcel to Independence Plaza, a 400,000+ SF retail shopping center anchored by a 147,000 SF HEB-Plus Grocery Store. Other retailers in Independence Plaza are Best Buy, TJ-Max, Hobby Lobby, Ross, Office Depot, Petco, Wells Fargo, Chick-Fil-A, McDonalds, and GameStop. Directly west of the property, across McPherson Road, is Doctors Hospital a 180-bed Level III Trauma Center. The hospital employs over 525 people and has over 18,000 emergency department visits each year. East of Independence Plaza, across International Boulevard, is a new Wal-Mart Supercenter and an Academy Sports store. North across Loop 20 Lowe s has proposed a new location. LAREDO, WEBB COUNTY, TEXAS Laredo is the county seat of Webb County, Texas, and is located on the north bank of the Rio Grande River is South Texas. According to the 2010 census, the city population was 236,091 making it the 3 rd most populated city on the United States- Mexico border after San Diego, California and El Paso, Texas. Laredo is one of the oldest border crossings points along the US-Mexico border, and the nation s largest inland port of entry. Laredo s economy is based heavily on international trade with Mexico. Most major transportation companies have facilities in Laredo. Laredo s location, along the southern end of IH 35, which bisects the city, is close to major manufacturing and industrial centers in North Mexico. Forbes currently has Laredo listed as the 146 th best city in The United States for Business and Careers. Projected annual job growth for the area is 2.7%. LAREDO-NUEVO LAREDO MSA The Laredo-Nuevo Laredo Metropolitan Statistical Area, also known as Two Laredos or Laredo Borderplex, is made up of Webb County in Texas and three municipalities in Mexico: Nuevo Laredo in Tamaulipas; Hidalgo in Coahuila; and Anahuac in Nuevo Leon. The MSA has a population of 775,481 as per the 2010 INEGI and United States Censuses. The statistical area is ranked the 157 largest in the western hemisphere: 66 th in the United States; and 23 rd in Mexico respectively. The Laredo-Nuevo Laredo port of entry has five international bridges spanning the Rio Grande over which 12,000 commercial trucks and 1,000 rail cars travel daily. More than 47% of United States international trade headed for Mexico and more than 36% of Mexican international trade crosses through the Laredo-Nuevo Laredo port of entries, which lends to large commercial and industrial warehouse, import, and export facilities on each side of the border. Goods shipped through Laredo travel to more than 60 countries world-wide. Trade heavily influences each cities economy, and during the 2008 economic recession Laredo s economy expanded, boosted by strong trade with Mexico. Retail also helps to drive the Laredo-Nuevo Laredo economy as the borderplex attracts shoppers from Northern Mexico, including Monterrey, and across South Texas. Two indoor shopping malls and dozens of open air plaza retail centers compete to attract the thousands of visitors from Mexico who flock to Laredo each day to buy clothing and electronics at half the price of what it would cost them in Mexico. Laredo boasts the #1 Wal-Mart (based on sales per SF) in the United States. Wal-Mart, Best Buy, Academy Sports and Outdoors, HEB Plus, Hobby Lobby, and TJ Maxx have opened multiple stores in Laredo to fill the growing demand for retail in the region. Laredo also draws international shoppers from nearby Monterrey, the 9 th largest and 2 nd richest city in Mexico, 130 miles to the south. Monterrey has the highest per capita income, is the most developed city, and is considered the most Americanized in Mexico. LAREDO FAQs #1 Inland Port on US-Mexico Border #6 Largest US Customs District Laredo ranked #5 for exports and #7 for imports in the US. $ billion in trade in Fiscal 2010 NAFTA Gateway for Air Cargo #1 Railroad Interchange Point on US-Mexico Border Serviced by 2 Class 1 Railroads: Union Pacific and Kansas City Southern Over 40 Million SF of Logistical/Distribution Space 40% of all US-Mexico Trade Crosses Through Point Laredo 12,000+ Daily Commercial Truck Crossings 1,000+ Daily Railcar Crossings Lowest Unemployment Rate on US-Mexico Border Only Recession-Proof MSA in the US in 2003: th best place in the USA for Business and Careers Forbes,

16 LOCATION MAP 16

17 LOCATION MAP 17

18 DEMOGRAPHICS Demographic snapshot Radius 1 Mile 3 Mile 5 Mile Population: 2016 Projection 12,552 43,892 88, Estimate 10,136 37,470 77, Census 2,260 19,465 49,188 Growth % 17.10% 13.60% Growth % 92.50% 58.30% 2011 Households: 2016 Projection 3,438 12,600 25, Estimate 2,749 10,651 22, Census 607 5,353 13,912 Growth % 18.30% 14.20% Growth % 99.00% 60.30% Owner Occupied 2,280 8,798 16,073 Renter Occupied 469 1,853 6, Avg Household Income $74,339 $77,411 $68, Med Household Income $64,305 $66,393 $56, Per Capita Income $21,773 $22,045 $19, Households by Household Inc: Income Less than $15, ,098 Income $15,000 - $24, ,565 Income $25,000 - $34, ,144 Income $35,000 - $49, ,322 3,302 Income $50,000 - $74, ,247 6,261 Income $75,000 - $99, ,024 3,155 Income $100,000 - $149, ,709 2,594 Income $150,000 - $249, Income $250,000 - $499, Income $500,000 or more INDEPENDENCE PLAZA DOWNTOWN LAREDO AT NIGHT 18

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