Actual Location Actual Location Refinery Specialties, Inc. 4792 CR 430 Pleasanton, Texas 78064 Actual Location Offering Memorandum Atlanta Chicago Houston Los Angeles New York Phoenix San Francisco Tulsa
Confidentiality and Restricted Use Agreement This Confidential Offering Memorandum ( COM ) is provided by Stan Johnson Company ( SJC ), solely for your consideration of the opportunity to acquire the commercial property described herein (the Property ). This COM may be used only as stated herein and shall not be used for any other purpose, or in any other manner, without prior written authorization and consent of SJC. This COM does not constitute or pertain to an offer of a security or an offer of any investment contract. This COM contains descriptive materials, financial information and other data compiled by SJC for the convenience of parties who may be interested in the Property. Such information is not all inclusive and is not represented to include all information that may be material to an evaluation of the acquisition opportunity presented. SJC has not independently verified any of the information contained herein and makes no representations or warranties of any kind concerning the accuracy or completeness thereof. All summaries and discussions of documentation and/or financial information contained herein are qualified in their entirety by reference to the actual documents and/or financial statements, which upon request may be made available. An interested party must conduct its own independent investigation and verification of any information the party deems material to consideration of the opportunity, or otherwise appropriate, without reliance upon SJC. The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the right to negotiate with any number of interested parties at any time. The Property is offered and sold by its owner(s) as is, where is, and with all faults, without representation or warranty of any kind except for any customary warranties of title. BY ACCEPTING THIS COM, YOU AGREE THAT: (1) all information contained herein, and all other information you have received or may hereafter receive from SJC relating to the Property, whether oral, written or in any other form (collectively, the Information ), is strictly confidential; (2) you will not copy or reproduce, and claim as your own without attribution to SJC, all or any part of this COM or the Information; (3) upon request by SJC at any time, you will return and/or certify your complete destruction of all copies of this COM and the Information; (4) for yourself and all your affiliates, officers, employees, representatives, agents and principals, you hereby release and agree to indemnify and hold harmless SJC all of its affiliates, officers, employees, representatives, agents and principals, from and with respect to any and all claims and liabilities arising from or related to the receipt or use of this COM and/or any other Information concerning the Property; (5) you will not provide this COM or any of the Information to any other party unless you first obtain such party s acceptance and approval of all terms, conditions, limitations and agreements set forth herein, as being applicable to such party as well as to you; and (6) monetary damages alone will not be an adequate remedy for a violation of these terms and that SJC shall be entitled to equitable relief, including, but not limited to, injunctive relief and specific performance, in connection with such a violation and shall not be required to post a bond when obtaining such relief. Offered Exclusively By Andrew Peeples Director apeeples@stanjohnsonco.com TX License #536694 Brett Butler Senior Director bbutler@stanjohnsonco.com Jeff Jackson Associate Director jjackson@stanjohnsonco.com Neal Maranuk Analyst nmaranuk@stanjohnsonco.com Stan Johnson Company 10333 Richmond Avenue Suite 740 Houston, Texas 77042 P: 832.476.3440 F: 832.476.3449 Page 2 Houston Office 832.476.3440
Actual Location Actual Location Purchase Price $1,300,000 Cap Rate 14.85% Stan Johnson Company is pleased to offer for sale to qualified investors, an industrial property which is 100% leased to Refinery Specialties Incorporated located in Pleasanton, TX. Refinery Specialties, Inc. is an oilfield service company that focuses on formulating manufacturing and providing customized specialty oil and gas chemicals. The city of Pleasanton is located just south of San Antonio, TX in the heart of the Eagle Ford Shale region. The city s close proximity to San Antonio, coupled with it being situated in the prolific Eagle Ford Shale, has caused many companies servicing the energy industry to establish locations in the city. The Property was recently completed, and commenced rent on March 23, 2015. The subject Property will feature a four (4) year, NN lease with two (2), one (1) year renewal options. Investment Highlights High Yielding Asset The Lease offers investors an opportunity to acquire a double digit, unleveraged cash-on-cash return. Attractive Lease - NN lease that limits landlord responsibility to structure only. Strong Credit Partner Refinery Specialties, Inc. is partners with Post Oak Energy Capital, a private investment firm. Post Oak primarily focuses on domestic companies that manufacture, distribute or provide products and equipment that are consumed in the exploitation of oil and natural gas reserves or are required to produce, process, and distribute these resources. Post Oak s is currently a major equity partner in +10 corporations. Brand New Construction - The Property was recently completed in 2015 and lease commencement began on March 23, 2015. Major Industrial Tenants Nearby - Select Energy Services, Baker Hughes, Halliburton, Weatherford, National Oilwell Varco, Pumpco Services, Pinnergy, Superior Well Services, FloQuip, Patterson-UTI, Lufkin, Express Energy, Greene s Energy Group, Flint, Lo Transport, E&P Wireline, Enterprise Products, Louisiana Crane, Code Red Safety, DRM Companies, Sunbelt Rentals, KDR Supply, EnSign Energy Services, Aveda Transportation & Energy Services, Boots & Coots, Cactus Wellhead, Cretic Energy Services, Rush Wellsite Services, Crest Pumping Technologies and Timco Services, among others. Actual Location Page 3 Houston Office 832.476.3440
Investment Summary 4792 CR 430 Pleasanton, TX 78064 Purchase Price: $1,300,000 Cap Rate: 14.85% NOI: $193,000 Tenant Name: Acres: Total Rentable SF: Year Constructed: 2015 Refinery Specialties, Inc. +/-2.933 Acres +/-7,920 SF Rent Commencement: March 23, 2015 Lease Expiration: March 31, 2019 Term: Renewal Options: Lease Type: Four (4) years Two (2), One (1) year options NN - landlord is responsible for structure only* *Landlord s sole duty as to the maintenance of the Premises is upon written request from Tenant to repair any material structural defect in the Premises, unless such material defect is caused, directly or indirectly, by the negligence or willful misconduct of Tenant or Tenant s agents, employees or contractors. Rent Schedule Years NOI Yield 1(Current) $193,000 14.85% 2 $193,000 14.85% 3 $193,000 14.85% 4 $193,000 14.85% Option 1 Year 5 $193,000 14.85% Option 2 Year 6 $193,000 14.85% N Page 4 Houston Office 832.476.3440
Tenant Overview Refinery Specialties, Inc is a Hempstead, Texas-based oilfield service company focusing on formulating, manufacturing and providing customized specialty oil and gas chemicals. RSI was founded in 1989 by Mickey Tucker to provide custom-blended chemicals in order to improve production yields and overall efficiencies of oil and gas wells in the conventional areas of the Austin Chalk as well as South Texas and East Texas. Growing to accommodate industry demands, RSI expanded into the Eagle Ford, East Texas, Arkansas and Louisiana, offering customized blended production chemical solutions, completion chemicals, pump down services, and related integrated services such as remedial pumping, stimulation and hot oiler services used during the completion phase of drilling onshore oil and gas wells in the United States. Management is focused on expanding its cost-effective product offerings and associated technical consulting services from its core operations in the Eagle Ford, Austin Chalk, Barnett, Fayetteville and Southern Louisiana into West Texas, Oklahoma, Ohio and beyond. Through the utilization of over 100 base chemicals, the Company replicates well conditions, analyzes the properties of the well, determines the precise mix of chemicals to treat the well and then either delivers chemicals directly to the operator or delivers and injects the chemicals in small batches via specialized pumping equipment. Page 5 Houston Office 832.476.3440
Location Overview Pleasanton is a city in Atascosa County, Texas. The population was 8,934 at the 2010 census. Pleasanton s official motto is The City of Live Oaks and Friendly Folks. It is part of the San Antonio- New Braunfels Metropolitan Statistical Area. Pleasanton is located within the Eagle Ford Shale, one of the most actively drilled targets for oil and gas in the United States. Pleasanton s location within this play is attracting many oil field related companies. Although Pleasanton isn t located in the heart of the drilling activity (located on the map to the right), its close proximity and direct access to the workforce and amenities of San Antonio makes Pleasanton a premiere location for companies and their employees. Downtown San Antonio is within 37 miles of Pleasanton, while Three Rivers, George West and Corpus Christi are located south of Pleasanton on the I-37 corridor. Pleasanton, compared to all of the small towns in the Eagle Ford, is the most developed and best prepared to handle the growth generated by this mammoth shale play. The city is taking steps to prepare for the continued and future growth as well. Before the Eagle Ford made its mark on South Texas, Pleasanton was already an attractive small town, including ample housing, livable neighborhoods, Wal-Mart, HEB grocery, restaurants, retail and some light industrial development. In the last two years, new retail has been developing rapidly along the city s main commercial corridor, highway 97. Residential development continues to increase to meet the new demand, along with new hotels and workforce-housing solutions. Oil field related companies have found land and buildings both inside and outside the city, further fueling the growth. Baker Hughes, Halliburton, Weatherford, National Oilwell Varco, Pumpco Services, Pinnergy, Superior Well Services, FloQuip, Patterson-UTI, Lufkin, Express Energy, Greene s Energy Group, Flint, Lo Transport, E&P Wireline, Enterprise Products, Louisiana Crane, Code Red Safety, DRM Companies, Sunbelt Rentals, KDR Supply, EnSign Energy Services, Aveda Transportation & Energy Services, Boots & Coots, Cactus Wellhead, Cretic Energy Services, Rush Wellsite Services, Crest Pumping Technologies and Timco Services, among others are just a few of the companies that are now located in Pleasanton. Pleasanton, TX is expected to be one of the top location preferences for Eagle Ford related business for years to come. Pleasanton is located approximately 37 miles south of San Antonio, the seventh most populous city in the U.S. with over 1.3 million people, and the second most populous city in the state of Texas. It was the fastest growing of the top 10 largest cities in the United States from 2000-2010, and the second from 1990-2000. The Eagle Ford Shale Wells Map city is located in the American Southwest, the south central part of Texas, and the southwestern corner of an urban region known as the Texas Triangle. San Antonio serves as the seat of Bexar County. The city has characteristics of other western urban centers in which there are sparsely populated areas and a low density rate outside of the city limits. San Antonio is the center of the San Antonio New Braunfels Metropolitan Statistical Area. Commonly referred to as Greater San Antonio, the metropolitan area has a population of over 2.23 million based on the 2012 U.S. Census estimate, making it the 24th-largest metropolitan area in the United States and third-largest in the state of Texas. Page 6 Houston Office 832.476.3440
I-37 (20,790 VPD) FM 536 (1,044 VPD) TX - 16 (5,100 VPD) E HWY 97 (6,822 VPD) TX - 173 (1,768 VPD) PLEASANTON MUNICIPAL AIRPORT PLEASANTON ROUTE 281 (6,100 VPD) JORDANTON Page 7 Houston Office 832.476.3440
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Demographics 4792 Country Rd 430 Pleasanton, TX 0-5 mi. 0-10 mi. 0-15 mi. Population 2015 Population 14,215 19,772 30,083 2020 Population 15,049 21,037 32,075 2010-2015 Annual Rate 1.05% 1.03% 1.09% 2015-2020 Annual Rate 1.15% 1.25% 1.29% Households 2015 Total Households 5,120 7,164 10,653 2020 Total Households 5,447 7,658 11,410 2015-2020 Annual Rate 1.25% 1.34% 1.38% Race and Ethnicity 2015 White Alone 87.8% 87.7% 85.8% 2015 Black Alone 1.0% 1.0% 1.1% 2015 American Indian/Alaska Native Alone 0.9% 0.9% 1.0% 2015 Asian Alone 0.6% 0.6% 0.5% 2015 Pacific Islander Alone 0.1% 0.1% 0.0% 2015 Other Race 7.3% 7.6% 9.2% 2015 Two or More Races 2.2% 2.3% 2.4% 2015 Hispanic Origin (Any Race) 52.6% 52.7% 58.9% 2015 Median Household Income $51,879 $52,447 $49,798 2015 Average Household Income $63,814 $64,202 $60,433 Page 9 Houston Office 832.476.3440
Andrew Peeples Director apeeples@stanjohnsonco.com TX License #536694 Brett Butler Senior Director bbutler@stanjohnsonco.com Jeff Jackson Associate Director jjackson@stanjohnsonco.com Neal Maranuk Analyst nmaranuk@stanjohnsonco.com Stan Johnson Company 10333 Richmond Avenue Suite 740 Houston, Texas 77042 P: 832.476.3440 F: 832.476.3449 The information contained herein was obtained from sources believed reliable, however, Stan Johnson Company makes no guaranties, warranties or representations as to the completeness thereof. The presentation of this property for sale, rent or exchange is submitted subject to errors, omissions, change of price or conditions, or withdrawal without notice.
Approved by the Texas Real Estate Commission for Voluntary Use Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords. Information About Brokerage Services efore working with a real estate broker, you should Bknow that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly. IF THE BROKER REPRESENTS THE OWNER: The broker becomes the owner s agent by entering into an agreement with the owner, usually through a written - listing agreement, or by agreeing to act as a subagent by accepting an offer of subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner s agent anything the buyer would not want the owner to know because an owner s agent must disclose to the owner any material information known to the agent. IF THE BROKER REPRESENTS THE BUYER: The broker becomes the buyer s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer s agent anything the owner would not want the buyer to know because a buyer s agent must disclose to the buyer any material information known to the agent. IF THE BROKER ACTS AS AN INTERMEDIARY: A broker may act as an intermediary between the parties if the broker complies with The Texas Real Estate License Act. The broker must obtain the written consent of each party to the transaction to act as an intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker s obligations as an intermediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermediary in a transaction: (1) shall treat all parties honestly; (2) may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner; (3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and (4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property. With the parties consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party. If you choose to have a broker represent you, you should enter into a written agreement with the broker that clearly establishes the broker s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding. Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee s records. Buyer, Seller, Landlord or Tenant Date Texas Real Estate Brokers and Salespersons are licensed and regulated by the Texas Real Estate Commission (TREC). If you have a question or complaint regarding a real estate licensee, you should contact TREC at P.O. Box 12188, Austin, Texas 78711-2188 or 512-465-3960. EQUAL HOUSING OPPORTUNITY 01A TREC No. OP-K