net leased portfolio FLORIDA, TEXAS, AND OHIO

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1 net leased portfolio FLORIDA, TEXAS, AND OHIO Diversified THREE ASSET PORTFOLIO FEATURING 1 STNL, 1 Ground Lease and 1 multi-tenant asset Lyden Drive A, Estero FL Colerain Avenue, Cincinnati, OH Tomball Parkway, Houston, TX

2 RARE PORTFOLIO OPPORTUNITY: THREE NET LEASED ASSETS LOCATED IN STRONG RETAIL MARKETS ACROSS THE COUNTRY investment highlights PRICE: $8,600,000 CAP: 6.50% LOAN AMOUNT...$5,863,699 LOAN TO VALUE % TOTAL RENTALBLE SF ,095 SF AVG. TERM REMAINING.. ~8.75 years This offering includes three long term net leased properties in Texas, Florida, and Ohio and represents the opportunity for an investor to acquire a portfolio with good diversification from day one of ownership. Two of the three properties are located in tax free states, further bolstering the appeal of the portfolio. The portfolio consists of an IHOP ground lease, a build-tosuit Brident Dental and a two-tenant strip with Mattress Firm and Aspen Dental. The property is being offered for sale with attractive in place financing that must be assumed. The rare combination of long term leases, diverse tenancy and quality markets make this an attractive opportunity for an investor. This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. Listing Team Contact Info chris kostanecki ck@capitalpacific.com (415) CA BRE# John Andreini jandreini@capitalpacific.com (415) CA BRE# jack navarra jnavarra@capitalpacific.com (415) CA BRE# zeb ripple zripple@capitalpacific.com (415) CA BRE# chris peters cpeters@capitalpacific.com (415) CA BRE# Listed in Conjunction with: Andrew T. Knight, New England Commercial Brokerage Andrew@NECBrokerage.com (860) Steve Sieling, Azur Commercial Capital, LLC steve@azurcc.com Tim Albro, Crest Commercial Realty Ext. 104 Tim.albro@crestrealtyohio.com Capital Pacific collaborates. Click Here to meet the rest of our San Francisco team. GREEN HERMITAGE PORTFOLIO 2

3 income & expense Current Current Financing (Must Be Assumed) Price: $8,600,000 Estimated Outstanding Principal Balance (09/18). $5,863,699 Capitalization Rate: 6.50% Loan to Value 68% Price Per Square Foot: $ Interest Rate 4.54% / 4.715% Down Payment 32% $2,736,301 Amortization 30 Loan Amount 68% $5,863,699 Term 10 Total Leased (SF)*: % 19,095 Net Operating Income $559,044 Total Vacant (SF): 0.00% 0 Debt Service ($385,632) Total Rentable Area (SF): % 19,095 Pre-Tax Cash Flow $173,412 INCOME Per Square Foot Debt Coverage Ratio 1.45 Scheduled Rent $29.63 $565,800 Brident Admin Fee $0.25 $1,125 Pre-Tax Leveraged Cash-on-cash Return 6.34% EFFECTIVE GROSS INCOME $566,925 Principal Pay down (Year 1 of Ownership) $110,462 Total Return $283,874 EXPENSE Yield 10.37% Maintenance Expenses NNN Utility Expenses NNN Insurance NNN Property Taxes NNN CapEx Reserve** ($0.15) ($1,905) Non-recapture Management Fee (2.0%)*** ($0.31) ($5,976) TOTAL OPERATING EXPENSES ($0.41) ($7,881) NET OPERATING INCOME $559,044 * Includes square footage of the IHOP building (ground lease) ** Excludes ground lease square footage *** Management fee exclusive to the two tenant asset (Estero) This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. GREEN HERMITAGE PORTFOLIO 3

4 portfolio rent roll TENANT INFO LEASE TERMS RENT SUMMARY Tenant Property Sq. Ft. Percent of GLA Term Monthly Rent Mattress Firm Estero 5, % Oct-14 10/31/19 $15,833 $190,000 $38.00 NN 11/1/ /31/24 $17,417 $209,000 $ /1/ /31/25 $19,158 $229,900 $45.98 Option 1 11/1/ /31/30 $19,158 $229,900 $45.98 Option 2 11/1/ /31/35 $21,075 $252,900 $50.58 Annual Rent Rent/FT Option 3 11/01/35 10/31/40 $23,183 $278,200 $55.64 Aspen Dental Estero 3, % Nov-14 11/30/19 $9,067 $108,800 $34.00 NN 12/01/19 11/30/24 $10,880 $119,680 $37.40 Option 1 12/01/24 11/30/29 $11,968 $131,648 $41.14 Option 2 12/01/29 11/30/34 $13,165 $144,813 $45.25 Option 3 12/01/34 11/30/39 $14,481 $159,294 $49.78 Brident Dental Houston 4, % 01/29/15 01/31/20 $13,500 $162,000 $36.00 NN 02/01/20 01/31/25 $14,850 $178,200 $39.60 Option 1 02/01/25 01/31/30 $16,335 $196,020 $43.56 Option 2 02/01/30 01/31/35 $17,969 $215,622 $47.92 Option 3 02/01/35 01/31/40 $19,765 $237,184 $52.71 Option 4 02/01/40 01/31/45 $21,742 $260,903 $57.98 IHOP Cincinnati 6, % Nov-15 11/30/20 $8,750 $105,000 Ground Lease 12/01/20 11/30/25 $9,625 $115,500 12/01/25 11/30/30 $10,588 $127,050 Occupied 19, % $47,150 $565,800 $29.63 Vacant % Current Totals: 19, % This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. GREEN HERMITAGE PORTFOLIO 4

5 portfolio CASH FLOW For the Years Ending 12/31/ /31/ /31/ /31/2021 Effective Gross Revenue $566, $570, $611, $622, Operating Expenses Real Estate Taxes $0.00 $0.00 $0.00 $0.00 Insurance $0.00 $0.00 $0.00 $0.00 Common Area Maintenance $0.00 $0.00 $0.00 $0.00 CapEx Reserve ($1,905.00) ($1,905.00) ($1,905.00) ($1,905.00) Non-recapture Management Fee (2.0%) ($5,976.00) ($6,075.60) ($6,573.60) ($6,573.60) Total Operating Expenses ($7,881.00) ($7,980.60) ($8,478.60) ($8,478.60) Net Operating Income $559, $562, $602, $613, Debt Service ($385,632.44) ($385,632.44) ($385,632.44) ($385,632.44) Cash Flow After Debt Service $173, $177, $217, $228, Cash on Cash (%) 6.34% 6.47% 7.94% 8.34% Interest Expense ($271,718) $140,511 $138,119 $135,612 Principal Paydown $109,177 $114,408 $119,130 $125,597 Total Return $282,588 $291,576 $336,424 $353,866 Total Return (%) 10.33% 10.66% 12.29% 12.93% Cummulative Principal Paydown $109,177 $223,585 $342,715 $468,312 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. GREEN HERMITAGE PORTFOLIO 5

6 loan abstract MATTRESS FIRM & ASPEN DENTAL (ESTERO, FL) IHOP (CINCINNATI, OH) LENDER Morgan Stanley Bank LENDER Morgan Stanley Bank LOAN AMOUNT $3,200,000 LOAN AMOUNT $1,250,000 PRINCIPAL BALANCE (MAR-18) $3,031,375 PRINCIPAL BALANCE (MAR-18) $1,182,698 ORIGINAL LOAN DATE 11/13/2014 ORIGINAL LOAN DATE 09/29/2014 MATURITY DATE 12/01/2024 MATURITY DATE 10/01/2024 AMORTIZATION 30 years AMORTIZATION 30 years INTEREST RATE 4.50% INTEREST RATE 4.715% MONTHLY PAYMENT $16, MONTHLY PAYMENT $6, PREPAYMENT Defeasance PREPAYMENT Defeasance ASSUMPTION FEE 1% ASSUMPTION FEE 1% RECOURSE Non-recourse RECOURSE Non-recourse BRIDENT DENTAL (HOUSTON, TX) LENDER LOAN AMOUNT PRINCIPAL BALANCE (MAR-18) ORIGINAL LOAN DATE MATURITY DATE AMORTIZATION INTEREST RATE MONTHLY PAYMENT PREPAYMENT ASSUMPTION FEE RECOURSE Morgan Stanley Bank $1,800,000 $1,703,085 09/29/ /01/ years 4.715% $9, Defeasance 1% Non-recourse GREEN HERMITAGE PORTFOLIO 6

7 Mattress Firm & Aspen Dental Lyden Drive A, Estero FL Click for Map IDEALLY LOCATED ACROSS THE STREET FROM PREMIER SIMON LIFESTYLE CENTER The subject property is a newly developed Mattress Firm and Aspen Dental, both of which are under corporate lease agreements with minimal landlord responsibility, and feature rent escalations every 5 years, in addition to 3 extension options. This property is located on a highly trafficked Route 41, the major north south corridor between Tampa, Fort Myers, and Naples, within an affluent region amongst numerous retail centers and country clubs. GREEN HERMITAGE PORTFOLIO 7 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

8 core characteristics Mattress Firm and Aspen Dental are both proven and stable brands within their space and have retail locations across the entire country. Mattress Firm, recently acquired by Steinhoff International for $3.8 billion, occupies more than 3,500 locations across 49 states and is the largest bedding retailer in the United States. Aspen Dental, a growing brand, has over 600 locations across 36 states and serves more than 15,000 per day. LEASE HIGHLIGHTS Mattress Firm signed an 11-year net lease and Aspen Dental has a 10-year net lease, both with three 5-year extension options to renew. Both tenants will receive rent increases of 10% every 5 years throughout both the initial term and option periods. The tenants are responsible for their pro rata share of taxes, insurance, and common area maintenance with the exception of the roof and structure. 77,000+ Residents with an average Household income exceeding $96K within a 5-mile radius LOCATION HIGHLIGHTS The subject property is conveniently located on US Highway 41 across the street from the 1.3 million square foot Coconut Point outdoor mall. The malll features over 140 stores including Apple, Bed Bath & Beyond, Best Buy, Dillard s, Target, and a 16-screen movie theater. US Highway 41 is the main thoroughfare running northsouth, acting as a bridge between Fort Meyers and Naples. This particular portion of Highway 41 benefits from a traffic count of over 48,000 vehicles per day, with the property being clearly visible from the road. The site benefits from strong demographics in the nearby area, with more than 74,000 residents with an average household income of $94,615 within a 5-mile radius. The Hertz Corporation recently relocated its headquarters to Estero, just up the road from the subject property. Over 700 employees work at the new 248,600 square foot building. This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. GREEN HERMITAGE PORTFOLIO 8

9 aerial BENEFITTING FROM TRAFFIC COUNTS IN EXCESS OF 48,000 VPD HOUSING (77,970 RESIDENTS WITHIN 5 MILES) Via Coconut Point COCONUT POINT SHOPPING CENTER 48,500 DAILY 41 S Tamiami 41 S Tamiami Trail Trail Lyden Drive MIAMI Lyden Drive GREEN HERMITAGE PORTFOLIO 9 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

10 rent roll - Estero Tenant TENANT INFO LEASE TERMS RENT SUMMARY Sq. Ft. Percent of GLA Term Current Rent Monthly Rent Mattress Firm 5, % Oct /31/19 $190,000 $15,833 $190,000 $38.00 NN 11/01/19 10/31/24 $17,417 $209,004 $41.80 Annual Rent Rent /FT 11/01/24 10/31/25 $19,158 $229,900 $45.98 Option 1 11/01/25 10/31/30 $19,158 $229,900 $45.98 Option 2 11/01/30 10/31/35 $21,075 $252,900 $50.58 Option 3 11/01/35 10/31/40 $23,183 $278,200 $55.64 Aspen Dental 3, % Nov /30/19 $108,800 $9,067 $108,800 $34.00 NN 12/01/19 11/30/24 $10,800 $119,680 $37.40 Option 1 12/01/24 11/30/29 $11,968 $131,648 $41.14 Option 2 12/01/29 11/30/34 $13,165 $144,813 $45.25 Option 3 12/01/34 11/30/39 $14,481 $159,294 $49.78 Occupied 8, % $298,800 $24,900 $298,800 $36.44 Vacant % Totals 8, % This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. GREEN HERMITAGE PORTFOLIO 10

11 48,500 DAILY site plan Bulb Lane SITE PLAN KEY PARCEL OUTLINE: RENTABLE AREA: 8,200 SF INGRESS/EGRESS: MONUMENT SIGN 41 S Tamiami Trail Lyden Drive NOT A PART This site plan is a rendering that has been created based on sources we believe to be reliable, however we make no representations or warranties, expressed or implied, as to the accuracy of the rendering. Buyer must verify the information and bears all risk for any inaccuracies. GREEN HERMITAGE PORTFOLIO 11

12 tenants MATRESS FIRM Mattress Firm, the largest bedding retailer in the country with over 3,500 locations across 48 states, recorded estimated sales of approximately $4 billion in fiscal Mattress Firm offers conventional mattresses, specialty mattresses, YuMe sleep system (a revolutionary sleep system made of foam produced from coconut oil), and bedding related accessories (bed frames, mattress pads, pillows). The company was recently acquired by Steinhoff International Holdings, the world s largest multi-brand/ multi-national mattress retail distribution network. Steinhoff has operations in 30 countries, dealing primarily with furniture and household goods, sold under 40 different brands. (NASDAQ: MFRM) ASPEN DENTAL Aspen Dental Management Inc. (ADMI) provides nonclinical support services to independently owned and operated dental practices in approximately 33 states. This includes finding the right location, payroll and benefits, equipment, accounting and marketing for their clients, leaving independent, licensed practitioners free to concentrate on patient care. Aspen Dental has more than 550 locations that offer patients a full range of denture and dental services, from preventive care to general dentistry restoration. In 2015 alone, Aspen Dental branded practices recorded nearly 3.7 million patient visits and welcomed nearly 785,000 new patients. GREEN HERMITAGE PORTFOLIO 12 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

13 surrounding retail THE COCONUT POINT SHOPPING CENTER FEATURES 140 STORES Coconut Point Shopping Center GREEN HERMITAGE PORTFOLIO 13

14 surrounding retail SURROUNDING NATIONAL RETAILERS AT COCONUT POINT GREEN HERMITAGE PORTFOLIO 14

15 demographics & map ABOUT ESTERO, FL Estero is located in Lee County, which sits along the Florida Gulf Coast between Fort Meyers to the north and Naples to the south. Estero has an estimated population of 30,800 with a growth of 869% since MATTRESS FIRM & ASPEN DENTAL LOCATION Florida Gulf Coast University is located just 15 minutes north of the subject property, which occupies 760 acres of land and has a student population of approximately 15,000. Florida Gulf Coast University is considered first-tier among regional universities in the southern U.S., and offers 51 different types of bachelor s, 29 different master s, and 6 types of doctoral degrees. Estero is also minutes away from the Southwest Florida International Airport, which is considered to be one of the top 50 airports for passenger traffic in the U.S., and the second busiest single runway airport in the country. REGIONAL MAP TAMPA 48,500 DAILY POPULATION 1-Mile 3-Mile 5-Mile ,233 24,434 69, ,768 27,498 77, ,264 30,795 86,797 2 HRS 11 MIN 146 MILES FORT MYERS 2017 HOUSEHOLD INCOMES 1-Mile 3-Mile 5-Mile Average $115,542 $105,564 $96,242 Median $67,060 $63,769 $58,786 ESTERO 30 MIN 22 MILES 2 HRS 20 MIN 142 MILES MIAMI This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. GREEN HERMITAGE PORTFOLIO 15

16 ihop 9540 Colerain Avenue, cincinnati, oh Click for Map CORPORATE GUARANTEED GROUND LEASE IN PREMIER RETAIL NODE OF CINCINNATI. CORPORATE LEASE GUARANTEED BY IHOP, INC. FEATURING 10% RENT INCREASES EVERY FIVE YEARS THROUGH THE REMAINDER OF THE PRIMARY TERM GREEN HERMITAGE PORTFOLIO 16 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

17 core characteristics IHOP, owned by DineEquity, has 1,650 locations in North America, Latin America, the Middle East, Southeast Asia, and Oceania. DineEquity is one of the largest full-service companies in the world, and has a workforce of over 200,000 team members. LEASE HIGHLIGHTS IHOP s lease runs through 2030 and features 10% rent escalations every 5 years. Tenant is responsible for its pro rata share of common area expenses each calendar year, with minimal maintenance obligations for the Landlord. IHOP Corporation is the Guarantor under the lease. 157,000+ Residents with an average Household income exceeding $66K within a 5-mile radius LOCATION HIGHLIGHTS The subject property is situated on Colerain Avenue, directly across the street from the Northgate Mall. Colerain Avenue experiences high traffic counts of over 29,000 vehicles per day. The Northgate Mall has 100 stores, with anchors including the Burlington Coat Factory, Macy s, Sears, Marshalls, and a 14-screen movie theater. The subject property has great visibility from Colerain Avenue, and the parking lot is easily accessible to cars heading in both directions. IHOP is just 20 miles outside of downtown Cincinnati, and is within a densely populated community. This site benefits from 157,014 residents within a 5-mile radius, Colerain High School just down the road, and an abundance of retail anchors along Colerain Avenue. This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. GREEN HERMITAGE PORTFOLIO 17

18 aerial BENEFITTING FROM TRAFFIC COUNTS OF NEARLY 30,000 VPD Ron a Could Reag ntry an C High ross way Colerain Middle School Colerain Hills Colerain Elementary Stone Creek Towne Center PEBBLE CREEK GOLF COURSE St. John the Baptist School Northgate Mall HOUSING Colerain High School (157,014 RESIDENTS WITHIN 5 MILES) Colerain Avenue 27 Colerain Avenue Y 29,380 DAIL Central Plaza 126 Colerain Towne Center Houston Early Learning Center 68, 240 Northgate Square ILY DA 126 NORTHGATE SQUARE H&R BLOCK Taylor Elementary CINCINNATI CITY CENTER 275 GREEN HERMITAGE PORTFOLIO 18 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

19 rent roll - Cincinnati TENANT INFO LEASE TERMS RENT SUMMARY Tenant Name Sq. Ft. Term Current Rent Monthly Rent Yearly Rent Monthly Rent/FT Yearly Rent/FT IHOP 6,395 Dec /30/10 $7,292 $87,500 $1.14 $13.68 Ground Lease 12/01/10 11/30/15 $8,000 $96,000 $1.25 $ /01/15 11/30/20 $105,000 $8,750 $105,000 $1.37 $ /01/20 11/30/25 $9,667 $116,000 $1.51 $ /01/25 11/30/30 $10,583 $127,000 $1.65 $19.86 Totals: 6,395 $105,000 $8,750 $105,000 $1.37 $16.42 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. GREEN HERMITAGE PORTFOLIO 19

20 site plan SITE PLAN KEY PARCEL OUTLINE: RENTABLE AREA: 6,395 SF INGRESS/EGRESS: PYLON SIGN 27 Colerain Avenue 29,380 DAILY This site plan is a rendering that has been created based on sources we believe to be reliable, however we make no representations or warranties, expressed or implied, as to the accuracy of the rendering. Buyer must verify the information and bears all risk for any inaccuracies. GREEN HERMITAGE PORTFOLIO 20

21 tenant overview ABOUT IHOP Since 1958, IHOP (NYSE:DIN) has served world famous pancakes and a wide variety of breakfast, lunch, and dinner items that are loved by people of all ages. IHOP offers its guests an affordable, everyday dining experience with warm and friendly service. The company is owned by DineEquity and 99% of the restaurants are run by independent franchisees. IHOP has over 1,700 locations across the U.S. and overseas. In 2017 IHOP ranked #12 in Customers Top Service Picks and #23 on the Top 500 Family Style Restuarants List from Restaurant Business Mangazine. In 2015 the restaurant chain saw revenues of $3.23 billion, with same-restaurant sales up 8.1%. This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. TOTAL LOCATIONS 1, SALES $3.23 BILLION SALES UP 8.1% Ihop Ranked #23 on the 2017 Top 500 Family Style Restaurants List from Restaurant Business. GREEN HERMITAGE PORTFOLIO 21

22 surrounding retail SURROUNDING NATIONAL RETAIL ALONG COLERAIN AVENUE GREEN HERMITAGE PORTFOLIO 22

23 surrounding retail IHOP IS A PART OF THE NORTHGATE SQUARE SHOPPING GREEN HERMITAGE PORTFOLIO 23

24 demographics & map IHOP LOCATION ABOUT CINCINNATI, OH Cincinnati, the county seat of Hamilton County, is the third-largest city in Ohio, with a population of 298,800, and the 65th-largest city in the United States. The city is part of the much larger Cincinnati-Middletown- Wilmington combined statistical area, which the 2010 consensus identified as having a population of over 2,100, ,380 DAILY Cincinnati is home to 9 Fortune 500 companies, and is considered to have the fastest growing economy in the Midwestern United States, with the cost of living and unemployment rate being below the national average. Cincinnati is home to numerous universities, including the University of Cincinnati and Xavier University, and there are more than 1 million students enrolled at the almost 300 colleges within a 200-mile radius of the city. In 2009, Cincinnati was ranked fourth on CNN s Top 10 Cities for New Grads list. REGIONAL MAP COLUMBUS POPULATION 1-Mile 3-Mile 5-Mile ,579 66, , ,512 66, , ,549 66, ,575 INDIANAPOLIS 1 HR 44 MIN 101 MILES CINCINNATI 1 HR 40 MIN 108 MILES 2017 HOUSEHOLD INCOMES 1-Mile 3-Mile 5-Mile Average $60,671 $64,154 $66,110 Median $48,486 $50,730 $51,466 2 HRS 53 MIN 110 MILES LOUISVILLE This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. GREEN HERMITAGE PORTFOLIO 24

25 brident dental tomball parkway, houston, tx Click for Map WALMART RETAIL PAD WITHIN DENSELY POPULATED REGION OF TEXAS. LEASE GUARANTEED BY WESTERN DENTAL S PARENT COMPANY. Brident Dental s Tomball Parkway property is located just off of a highly trafficked signalized intersection, and features excellent visibility. Brident Dental s lease is guaranteed by Premier Dental Services Inc. Premier Dental is the parent company of Western Dental, which is one of the nation s largest dental providers serving around one million patients annually in over 200 affiliated clinics within the Western U.S. GREEN HERMITAGE PORTFOLIO 25 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

26 core characteristics Brident Dental s initial lease term runs through 2025, and has four 5-year options, with 10% rent increases every five years. The company is an experienced dental services organization, with over 30 locations in Texas. LEASE HIGHLIGHTS Brident is currently on a 10-year lease term, with 10% rent increases every 5 years. Tenant has four 5-year options, with 10% increases every 5 years during extension period. Landlord has limited responsibility. Tenant is responsible for in-house maintenance, its pro rata share of common area maintenance and utilities, in addition to maintaining and replacing the HVAC system if necessary. Guaranteed by Premier Dental, parent company of Western Dental. 313,000+ Residents with an average Household income exceeding $64K within a 5-mile radius LOCATION HIGHLIGHTS This location is situated on Tomball Parkway, which benefits from favorable traffic counts of over 45,000 vehicles per day Brident Dental is a pad to Walmart and is surrounded by retail along Tomball Parkway, including Family Dollar, ALDI, and Kroger. Just off of the signalized intersection of Tomball Parkway and Smiling Wood Lane, Brident Dental is easily accessible. This area is an extremely densely populated area of Houston, with 313,970 residents within a 5-mile radius of the subject property. This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. GREEN HERMITAGE PORTFOLIO 26

27 aerial LOCATED 17 MILES FROM DOWNTOWN HOUSTON, THE SITE BENEFITS FROM EXCEPTIONAL DENSITY WITH 313,000 PEOPLE IN A 5-MILE RADIUS. The Commons at Willowbrook Stelle Claughton Middle School Lewis Elementary Cypress Creek High School Willowchase Shopping Center Willowbrook Mall Link Elementary Davis High School Davis Ninth Grade School Willowbrook Plaza Spence Elementary Conley Elementary Plummer Middle School y wa k ree C ss 24 9 To m ba Alternative Learning Center Francone Elementary Sam Houston Tollway ll P ar 157,000 DAILY kw ay HOUSING McDougle Elementary Gloria B Sammons Elementary riv ld a ori em sm e Cook Middle School (313,970 RESIDENTS WITHIN 5 MILES) an ter Ve Wilbern Elementary Sam Houston Tollway Cy pre rk Pa 45,098 DAILY Bang Elementary Gleason Elementary Reed Elementary HOUSTON CITY CENTER Klein Intermediate Eiland Elementary Nitsch Elementary Emmet and Sarah Hill Intermediate GREEN HERMITAGE PORTFOLIO 27 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

28 rent roll - Houston TENANT INFO LEASE TERMS RENT SUMMARY Tenant Name Sq. Ft. Term Current Rent Monthly Rent Yearly Rent Monthly Rent/FT Yearly Rent/FT Brident Dental 4,500 01/29/15 01/31/20 $162,000 $13,500 $162,000 $3.00 $36.00 NN 02/01/20 01/31/25 $14,850 $178,200 $3.30 $39.60 Option 1 02/01/25 01/31/30 $16,335 $196,020 $3.63 $43.56 Option 2 02/01/30 01/31/35 $17,969 $215,622 $3.99 $47.92 Option 3 02/01/35 01/31/40 $19,765 $237,184 $4.39 $52.71 Option 4 02/01/40 01/31/45 $21,742 $260,903 $4.83 $57.98 Totals: 4,500 $162,000 $13,500 $162,000 $3.00 $36.00 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. GREEN HERMITAGE PORTFOLIO 28

29 site plan 249 Tomball Parkway 45,098 DAILY PYLON SIGN SITE PLAN KEY PARCEL OUTLINE: RENTABLE AREA: INGRESS/EGRESS: 4,500 SF NOT A PART ENTRANCE FOR NOT A PART This site plan is a rendering that has been created based on sources we believe to be reliable, however we make no representations or warranties, expressed or implied, as to the accuracy of the rendering. Buyer must verify the information and bears all risk for any inaccuracies. GREEN HERMITAGE PORTFOLIO 29

30 tenant overview ABOUT THE GUARANTOR PREMIER DENTAL SERVICES, INC. Premier Dental Services, Inc. is the Guarantor of Brident Dental s Lease, and is the parent company of Western Dental, which is one of the top providers of orthodontic services in the Western U.S. Premier Dental is one of the largest dental services organizations in the United States, with over 180 locations and over 4,000 team members throughout Texas, California, Arizona, Nevada, and Colorado. Based in California, Premier Dental acts as a holding company providing all types of dental and oral health services. TOTAL LOCATIONS 180+ TOTAL EMPLOYEES 4,000+ Brident Dental serves over 2 Million Patients annually in 200+ affiliated offices ABOUT THE TENANT BRIDENT DENTAL Brident Dental is a leading dental services organization that offers accessible, affordable, and high-quality dental care to patients of all ages throughout 30+ locations in Texas. The company provides business support services to dental offices owned by licensed dentists, and is affiliated with a dental and oral health maintenance organization that provides services in over 180 locations. Brident Dental is currently dedicating resources towards expanding its presence, which will include acquiring individual dental clinics and group practice management companies, both within and beyond its historical geographical regions. This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. GREEN HERMITAGE PORTFOLIO 30

31 surrounding retail 313,000+ RESIDENTS WITHIN A 5-MILE RADIUS. GREEN HERMITAGE PORTFOLIO 31

32 surrounding retail SURROUNDING RETAIL ALONG TOMBALL PARKWAY GREEN HERMITAGE PORTFOLIO 32

33 demographics & map BRIDENT DENTAL LOCATION ABOUT HOUSTON, TX Houston is the most heavily-populated city in the state of Texas, and is the fourth most populous city in the United States, with a censusestimated 2016 population of million within an area of 667 square miles. Houston is located within the Greater Houston metro area, which contains 9 counties, and is the fifth-most populated MSA in the United States. The economy in Houston is one that is diverse, and is universally known for its energy industry, biomedical research, petrochemicals, and aeronautics. In addition, Houston is the top U.S. market for exports, with the ever-busy Port of Houston ranking first in international commerce and tenth among the largest ports in the world. Outside of New York City, Houston has more Fortune 500 headquarters than any other U.S. municipality within its city limits. REGIONAL MAP 51,500 DAILY DALLAS POPULATION 1-Mile 3-Mile 5-Mile , , , , , , , , ,568 3 HRS 27 MIN 228 MILES 2017 HOUSEHOLD INCOMES 1-Mile 3-Mile 5-Mile Average $51,120 $61,563 $64,334 Median $39,409 $48,617 $48,824 3 HRS 12 MIN 199 MILES HOUSTON This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. SAN ANTONIO GREEN HERMITAGE PORTFOLIO 33

34 chris kostanecki (415) CA BRE# zeb ripple (415) CA BRE# John Andreini (415) CA BRE# chris peters (415) CA BRE# jack navarra (415) CA BRE# Capital Pacific collaborates. Click Here to meet the rest of our San Francisco team. Listed in Conjunction with: Andrew T. Knight, New England Commercial Brokerage (860) Steve Sieling, Azur Commercial Capital, LLC Tim Albro, Crest Commercial Realty Ext. 104 [ Copyright 2017 Capital Pacific ]