1718 South Bryant Boulevard, San Angelo, Texas 76903

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1 1718 South Bryant Boulevard, San Angelo, Texas Exclusively Offered By: Michael Campbell CA Lic # Ed Colson, Jr. CCIM CA Lic # TX Lic # A TitleMax

2 OFFERING STATEMENT / DISCLAIMER InvestCore Commercial has been retained as exclusive advisor to the Seller for the sale of the approximately 4,940 square feet building on approximately 15,368 square feet of land located at 1718 South Bryant Boulevard, San Angelo, Texas This Offering Memorandum has been prepared by CTSD for use by a limited number of parties and does not purport to provide a necessarily complete summary of the Property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information which prospective investors may need or desire. All projections have been developed by CTSD, the Owner, and designated sources and are based upon assumptions relating to the general economy, competition, and other factors beyond the control of the Owner and CTSD, therefore, are subject to variation. No representation is made by CTSD or Owner as to the accuracy or completeness of the information contained herein, and nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of the Property. Although the information contained herein is believed to be correct, Owner and its employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, CTSD, Owner, and its employees disclaim any and all liability for representations and warranties, expressed and implied, contained in, and omitted from, this Offering Memorandum or any other written or oral communication transmitted or made available to the recipient. This Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of the Property or the Owner since the date of preparation of the package. Analysis and verification of the information contained in this package is solely the responsibility of the prospective purchaser. Additional information and an opportunity to inspect the Property will be made available upon written request to interested and qualified prospective investors. Owner and CTSD each expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers regarding the Property and/or terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligation to any entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase of the Property has been fully executed, delivered, and approved by Owner and its legal counsel, and any conditions to Owner s obligations thereunder have been satisfied or waived. CTSD is not authorized to make any representations or agreements on behalf of Owner. This Offering Memorandum and the contents, except such information which is a matter of public record or is provided in sources available to the public (such contents as so limited herein are called the Contents ), are of a confidential nature. By accepting the package, you agree (i) to hold and treat it in the strictest confidence, (ii) not to photocopy or duplicate it, (iii) not to disclose the package or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior written authorization of Owner or CTSD, (iv) not use the package or any of the contents in any fashion or manner detrimental to the interest of Owner or CTSD, and (v) to return it to CTSD immediately upon request of CTSD or Owner. The information contained herein has been obtained from the owner of the property or from other sources we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it. If you have no further interest in the Property, please return this Investment Offering Memorandum forthwith. InvestCore Commercial, Inc W. Point Loma Blvd, 2nd Floor San Diego, CA TitleMax

3 TABLE OF CONTENTS INVESTMENT SUMMARY 3 Executive Summary Location Highlights Investment Highlights Amenities Map PROPERTY DESCRIPTION 7 Aerials Traffic Count Map Location Map Site Plan AREA OVERVIEW 11 Tenant Information Article: The Cline Shale Demographics [ ] QUOTE QUOTE QUOTE 2 TitleMax

4 INVESTMENT SUMMARY EXECUTIVE SUMMARY Tenant: TitleMax Address: 1718 South Bryant Boulevard, San Angelo, Texas Building Size: Land Size: Year Built: 2014 ~4,940 SF ~15,368 SF Rent Commencement: April 1, 2014 Lease Expiration: March 31,2019 Lease Term: Options: Rent Increases: Insurance: Taxes: Maintenance: Roof & Structure: Rent Schedule: 5 years Two (2) five year options 10% every 5 years Reimbursed monthly by Tenant Reimbursed monthly by Tenant Tenant responsible for all interior, non-structural, including parking lot Landlord responsible Term Years Date of Increase Annual Rent % Increase Primary 1-5 $61,788 Option April 1, 2019 $67,968 10% Option April 1, 2024 $74,760 10% OFFERING TERMS Price: $758,135 Cap Rate: 8.15% Net Operating Income: $61,788 3 TitleMax

5 INVESTMENT SUMMARY LOCATION HIGHLIGHTS LOCATED IN THE HEART OF SAN ANGELO The property is located across the street from Angelo State University, home to 7,084 students. The property benefits from one of the major employers in San Angelo, Goodfellow Air Force Base, located just east of the TitleMax. HIGH TRAFFIC COUNTS ON BUSY THOROUGHFARE The subject property is located on Highway 87 (S. Bryant Blvd.), one of the most highly trafficked thoroughfares in San Angelo. S. Bryant Blvd. is also the roadway that connects commuters between Highway 67, to the north of the property, and Loop 306 to the south of the property. POPULATION GROWTH Total Population 100, ,000 94,936 95,000 92,368 IDEAL DEMOGRAPHICS FOR San Angelo is a blue collar community with average household incomes of approximately $50,000, ideal for a business like TitleMax Population, Households and Average Household Incomes all have positive projected annual growth rates between of 1.05%, 1.17% and 2.85% respectively 90,000 85,000 80,000 75,000 70,000 65,000 60,000 55,000 87,523 50,000 45,000 THE CLINE SHALE 40,000 35,000 The formerly low profile Cline shale, equivalent to the Cisco, has captured the attention of Tulsa-based Laredo Petroleum and other operators. Laredo s Permian activity is centered on the basin s eastern side about 35 miles east of Midland, Texas, which has long been dubbed capital of the Permian Basin. The U.S. Geological Survey said it s the largest discovery in the last 50 years in the Permian Basin. 30,000 25,000 20,000 15,000 10,000 5, TitleMax

6 INVESTMENT SUMMARY INVESTMENT HIGHLIGHTS CORPORATE SIGNATURE AND NEW LEASE Corporate signature and corporate guarantee on the lease. TitleMax has over 1,350 stores spanning 16 states. TitleMax recently signed a brand new lease which commenced in February of NEWLY REDEVELOPED BUILDING The Landlord and Tenant spent nearly $100,000 on remodeling the existing building in converting it to current TitleMax standards. The 4,940 SF box allows for numerous uses BITE SIZED INVESTMENT ATTRACTIVE RETURN IN COMPETITIVE MARKET This is an excellent opportunity to acquire a quality single tenant NNN investment for under $1M, ideal for an investor who may have a small 1031 exchange requirement or boot leftover. An 8% cap rate provides an investor with a favorable return in a competitive market for buyers searching for freestanding NNN investment opportunities. Cap rates have compressed across the board for corporately backed net leased investments. LACK OF QUALITY COMPETITION TitleMax is the largest and most reputable title lending business in town. 5 TitleMax

7 INVESTMENT SUMMARY AMENITIES MAP 6 TitleMax

8 PROPERTY DESCRIPTION AERIAL 7 TitleMax

9 PROPERTY DESCRIPTION TRAFFIC COUNT MAP 8 TitleMax

10 PROPERTY DESCRIPTION LOCATION MAP Lawton Wichita Falls Lubbock McKinney Plano 30 Arden Rd Glenna St W Houston Harte Expy Sunset Dr Howard St N Chadbourne St « W Ave N Knickerbocker Rd S Jackson St ) «208 San Angelo S Bryant Rd Pulliam St «1223 «388 San Angelo ) «765 Loop 306 S Abilene Round Rock Austin W Waco Temple Dallas 35E 45 College Station 20 Tyler Longview Southland Blvd Miles Lake Nasworthy State Loop 306 E Rd Copyright: 2014 Esri, Sources: Esri, GEBCO, NOAA, National Geographic, DeLorme, NAVTEQ, Geonames.org, and other contributors Ben Ficklin U San Antonio Houston Galveston 37 Victoria 9 TitleMax Miles Copyright: 2014 Esri, Sources: Esri, GEBCO, NOAA, National Geographic, DeLorme, NA Geonames.org, and other contributors

11 PROPERTY DESCRIPTION SITE PLAN 10 TitleMax

12 AREA OVERVIEW TENANT INFORMATION ABOUT CAR TITLE LOANS TitleMax is one of the nation s largest and most reputable title lending companies. Since its inception in 1998, TitleMax has expanded to over 1,350 stores spanning 16 states. TitleMax strives to offer some of the lowest interest rates on title loans in the industry, while providing a superior level of customer service. WHY? TitleMax provides title loans to over 2,500 people every day. They choose TitleMax because: TitleMax offers the most cash title loans up to $10,000!* TitleMax doesn t check your credit you re approved! TitleMax has some of the lowest rates up to 50% less! TitleMax offers instant approval get your cash faster! TitleMax doesn t require auto insurance getting cash is easy! With over 1,350 convenient locations, getting cash is easy with TitleMax! The title loan process only takes about 30 minutes. And the best part is you get to keep driving your car when you get a TitleMax car title loan. WHAT PRODUCTS DOES OFFER? TitleMax not only offers a simple way to get the money you need when you need it, but we also pride ourselves on providing excellent customer service and a very easy loan process. We offer a number of different products to fit all types of lifestyles and budgets. Please visit the TitleMax website for additional information: 11 TitleMax

13 AREA OVERVIEW IN PURSUIT OF LIQUIDS-RICH PLAY IN THE CLINE SHALE Excerpt from May 2012 issue of AAPG Explorer Magazine he formerly low profile Cline shale, equivalent to Tthe Cisco, has captured the attention of Tulsabased Laredo Petroleum and, more recently, other operators. Laredo s Permian activity is centered on the basin s eastern side about 35 miles east of Midland, Texas, which has long been dubbed capital of the Permian Basin. The company s production/ exploration fairway is about 20 miles wide and 80 miles long. In 2011, it drilled 262 wells (234 operated) on its Permian Basin assets with a 100 percent success rate on the 239 wells that were completed during The overall Wolfberry interval, which is the principal focus of our vertical drilling activities, is an oil play that also includes a liquids rich natural gas component, said Laredo founder, chairman and CEO Randy Foutch, an AAPG member. Prior to our purchase of Broad Oak, the exploration and drilling efforts in the southern half of our acreage block were centered on the shallower part of the Wolfberry, he said. But the emphasis in the northern half has always been on the deeper intervals, including the Wolfcamp, Cline shale, Strawn and Atoka formations. We have identified significant potential throughout our total acreage block for the entire Wolfberry interval from the shallow zones to the deepest, he noted. Consequently, the company expanded its drilling program to include a horizontal component targeting the Cline and Wolfcamp shales. Our Cline shale drilling began after we conducted an extensive technical review, including whole core analysis and single zone testing in vertical wells, Foutch said. We believe the Cline shale exhibits similar petrophysical attributes and favorable economics compared to other liquids-rich shale plays, such as in the Eagle Ford and Bakken shale formations. We have acquired 3-D seismic data to assist in fracture analysis and the definition of the structural component within the Cline shale, he added. Eighteen wells were drilled as part of the company s Cline drilling program in 2011, and Laredo had two horizontal rigs drilling in the program at year-end. Efforts are under way to optimize well performance according to lateral length, fracture density, proppant amounts and pumping rates. Laredo also has completed six horizontal wells in the Wolfcamp shale. This is all very fast moving, Foutch commented. No one was talking about horizontal Wolfcamp even 18 months ago. We think there will always be vertical drilling in the Wolfberry, but the results in the horizontals are such that you ll see expanding horizontal drilling activity. We were the 12 TitleMax

14 AREA OVERVIEW IN PURSUIT OF LIQUIDS-RICH PLAY IN THE CLINE SHALE Excerpt from May 2012 issue of AAPG Explorer Magazine only ones doing much Cline work until maybe six months ago, and now the industry has picked up on it, Foutch continued. We anticipate it will turn out to be a pretty spectacular world class horizontal oil shale target. There s another key factor at work in this big play the money. At the start of 2000, oil was about $20 a barrel, another industry player noted. Because it went up, we could afford to implement these huge fracturing techniques where we re fracturing these 10,000-feet-deep vertical wells with a million gallons of water. When this began, the cost to drill and complete a well was $700,000, and now it s $1,700,000, he said. This is mainly due to increased costs, such as more fracturing stages and adding more Wolfcamp and other formations. Plays such as this are a big deal for the players and for anyone who uses anything even remotely related to oil, i.e. everyone. There will be a million acres or more involved in this play, he predicted. If it s all drilled out at 40-acre spacing, it should recover about three billion barrels of oil. The U.S. Geological Survey said it s the largest discovery in the last 50 years in the Permian Basin. THE CLINE SHALE: A BRIEF OVERVIEW The Cline Shale (also known as the Lower Wolfcamp) lies over a very large area on the eastern shelf of the Permian Basin. The Cline is a localized name for the Pennsylvanian aged shale that some recognize as the D bench of the Permian aged Wolfcamp. The Cline source rock lies on a broad flat shelf, with very little relief. In short, the Cline is an organic rich shale, with Total Organic Content (TOC) of 1-8%, with silt and sand beds mixed in. It lies in a broad shelf, with minimal relief and has nice light oil of gravity with excellent porosity of 6-12% in thickness varying 200 to 550 feet thick. Active players in the shale include Devon Energy, Chesapeake, Firewheel Energy, Apache Energy, Laredo Petroleum, Exco, Callon Petroleum, Pioneer Resources and others. Counties included in the shale are Fisher, Nolan, Sterling, Coke, Glasscock, Tom Green, Howard, Mitchell, Borden and Scurry. 1 TitleMax

15 AREA OVERVIEW DEMOGRAPHICS mi 3 mi 5 mi Population Population 6,422 64,085 94, Annual Rate 0.95% 1.09% 1.05% 2013 Male Population 48.9% 49.2% 48.8% 2013 Female Population 51.1% 50.8% 51.2% 2013 Median Age Households 2013 Total Households 2,663 24,508 36, Annual Rate 0.76% 0.98% 0.94% 2013 Average Household Size Race and Ethnicity White Alone 79.1% 76.6% 78.4% Black Alone 3.8% 6.4% 5.7% American Indian Alone 1.1% 0.9% 0.9% Asian Alone 0.6% 1.1% 1.3% Pacific Islander Alone 0.1% 0.1% 0.1% Some Other Race Alone 12.8% 11.6% 10.4% Two or More Races 2.6% 3.3% 3.2% Hispanic Origin (Any Race) 54.2% 44.6% 39.9% 1 mi 3 mi 5 mi Average Household Income 2013 Average Household Income $54,649 $48,714 $54, Average Household Income $63,284 $56,257 $62, Annual Rate 2.98% 2.92% 2.85% Per Capita Income 2013 Per Capita Income $23,192 $20,079 $22, Per Capita Income $27,001 $23,000 $25, Annual Rate 3.09% 2.75% 2.78% Data Note: Income is expressed in current dollars Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2013 and Median Household Income 2013 Median Household Income $35,953 $35,701 $40, Median Household Income $44,719 $42,581 $50, Annual Rate 4.46% 3.59% 4.75% 2 TitleMax