DISPOSITION P R O P O S A L & Samco Tune REPRESENTATION PHOTO TWO UNIT PORTFOLIO Fort Worth, TX EXCLUSIVELY PREPARED FOR: Seth Thatcher
2 Unit Portfolio Fort Worth, Texas MEET MATTHEWS The Matthews Difference........................... 5 PRICING AND FINANCIAL ANALYSIS Executive Summary.............................. 7 Company Overview.............................. 8 Estimated Net Proceeds........................... 9 Fort Worth, TX................................ 10 PROPERTY DESCRIPTION Property Overview & Demographics Report................ 11 Regional Map.................................. 12 RECENT SALES Market Assessment............................ 13-14 MATTHEWS RETAIL ADVISORS ADVANTAGE Performance................................. 15 Clients...................................... 17 Matthews Marketing Difference....................... 19 PRESENTED BY Christopher Laskero STNL Capital Markets License No. 677086 (TX) O 214.692.2921 M 858.414.7849 chris.laskero@matthews.com Braden Crockett AVP & Director License No. 01946071 (CA) O 214.692.2040 M 714.345.6206 braden.crockett@matthews.com Disclaimer Statement. THIS IS NOT AN APPRAISAL: This Real Estate Broker s Opinion of Value is intended for the sole and exclusive use of Seller, LLC ( the Client ) and may not be relied upon any person or entity other than the Client for any purpose whatsoever. This Real Estate Broker s Opinion of Value represents only the opinion of Matthews Retail Group, Inc. (also known as Matthews Retail Advisors) as to the value of the Subject Property, subject to the assumptions and qualifications set forth herein. Matthews Retail Group, Inc. is not licensed to perform real property appraisals. Accordingly, this Real Estate Broker s Opinion of Value does not constitute an appraisal of the Subject Property and has not been prepared in accordance with the Uniform Standards of Professional Appraisal Practice. The Real Estate Broker s Opinion of Value set forth herein is specifically qualified by, and based solely upon, the relevant facts, circumstances, and market conditions that exist as of the date of this Real Estate Broker s Opinion of Value, and we undertake no obligation to update, modify, or supplement this Real Estate Broker s Opinion of Value to the extent that such facts, circumstances or market conditions subsequently change.
MEET MATTHEWS Matthews Real Estate Investment Services is the nation s fastest-growing brokerage firm and holds recognition as an industry leader in shopping center, multifamily, NNN retail, portfolio disposition and 1031 Exchange transactions. Defined by a culture of passion and innovation, clients experience unrivaled execution and an unprecedented level of collaboration. Matthews Real Estate Investment Services is comprised of specialized divisions including Matthews Retail Advisors and Matthews Multifamily Advisors. The firm headed by Kyle Matthews, Chairman and CEO, is headquartered in El Segundo, CA and serves clients throughout the United States and Canada. $11.2 BILLION TOTAL REVENUE 2,266+ TRANSACTIONS CLOSED 4 Matthews Retail Advisors
THE MATTHEWS DIFFERENCE TECHNOLOGY MEETS SALES TENACITY Silicon Valley technology combines with main-street sales tenacity to execute and add the utmost value to our client s investment strategy. AWARENESS THROUGH AMPLIFICATION Leveraging active relationships, a 10-touch digital marketing process and streamlined production, we get your deal to the market and the market to your deal. DATABASE OF ACTIVE INVESTORS Equipped with the industry s largest database of active investors, your deal team holds access to the most qualified opportunities. CENTRALIZED CLIENT SERVICES Supplementing sales with in-house financial consulting and transaction management, our centralized client services foster specialization, collaboration, and a heightened client experience from list to close. Matthews Retail Advisors 5
PRICING & FINANCIAL 6 Matthews Retail Advisors
EXECUTIVE SUMMARY Suggested List Price $1,300,000 Combined NOI $112,300 Cap Rate 8.64% Annualized Operating Data Monthly Rent Annual Rent Rent/SF Cap Rate Current $9,358.33 $112,300.00 $37.08 8.64% Tenant Samco Tune & Lube Address 3628 Altamesa Blvd. 3634 Altamesa Blvd. City, State Fort Worth, TX 76133 Fort Worth, TX 76133 Current NOI $71,500.00 $40,800.00 Square Footage ± 2,028 SF ± 1,000 SF Lot Size 0.58 Acres 0.58 Acres Tenant Summary Tenant Trade Name Type of Ownership Operator Lease Type Roof and Structure Fee Simple Pep Boys NNN Tenant Responsible Tenant Summary Tenant Trade Name Type of Ownership Operator Lease Type Roof and Structure Samco Tune & Lube Fee Simple Franchisee NNN Tenant Responsible Matthews Retail Advisors 7
Offering Memorandum Tenant Company Name Parent Company Trade Name Ownership Pep Boys Icahn Enterprises L.P. Private No. of Locations ± 800 No. of Employees ± 18,600 Headquartered Website Philadelphia, PA www.justbrakes.com Year Founded 1921 Brand Overview Philadelphia-based Pep Boys has operations in 35 US States and Puerto Rico. Major markets for the company include California, Florida, Pennsylvania, and Texas, home to nearly half of its stores. Pep Boys also has warehouses in California, Georgia, Texas, Indiana, New York, and Pennsylvania. An automotive paradise for do-it-yourselfers, Pep Boys stock about 25,000 car parts and accessories, including tires, and combined, operate more than 7,500 service bays for vehicle repairs, inspections, and parts installations. It also offers credit and parts delivery to commercial customers, such as repair shops, fleet operators, schools, and municipalities. Founded in 1921 by Philadelphians Manny, Moe, and Jack, Pep Boys was acquired by billionareinvestor Carl Icahn s, Icahn Enterprises in February 2016. Strategy In late 2015, Pep Boys found itself the target of a bidding war between Japanese tire company, Bridgestone, and activist investment firm Icahn Enterprises. After originally accepting an $835 million offer from Bridgestone, the auto parts retailer eventually agreed to a $1 billion-plus purchase by Icahn (which completedin February 2016). The investment firm plans to combine Pep Boys with the Auto Plus chain, which it acquired earlier in 2015. 8 Matthews Retail Advisors
Offering Memorandum SALES RANGE List Probable Low Price Range $1,299,769 $1,263,217 $1,228,665 Cap Rate 8.64% 8.89% 9.14% Escrow Fees $3,500 $3,500 $3,500 Title Fees $1,500 $1,500 $1,500 Transfer Tax N/A N/A N/A Commission (6%) (6%) (6%) Total Cost $82,986 $80,793 $78,720 Total Net Proceeds $1,216,782 $1,182,424 $1,149,945 Matthews Retail Advisors 9
EXECUTIVE SUMMARY 3628 Altamesa Blvd. Fort Worth, TX 76133 Tenant Summary Tenant Trade Name Type of Ownership Operator Lease Type Roof and Structure Fee Simple Pep Boys NNN Tenant Responsible Lease Expiration Date 12/31/2018 Term Remaining on Lease Increases Options ±1 Year 4% Every 5 Years One (1), Five (5) Year Option Annualized Operating Data Monthly Rent Annual Rent Rent/SF Current - 12/31/2018 $5,958.33 $71,500.00 $35.26 Option 1 $6,196.67 $74,360.00 $36.66 3634 Altamesa Blvd. Fort Worth, TX 76133 Tenant Summary Tenant Trade Name Samco Tune & Lube Inc. Type of Ownership Fee Simple Operator Samco Tune & Lube Inc. Lease Type NNN Roof and Structure Tenant Responsible Lease Expiration Date 6/1/2019 Term Remaining on Lease ±2 Years Increases Fair Market Value Options One (1), Five (5) Year Option Annualized Operating Data Monthly Rent Annual Rent Rent/SF Current - 5/29/2018 $3,400.00 $40,800.00 $40.80 5/30/2018-6/1/2019 $3,500.00 $42,000.00 $42.00 10 Matthews Retail Advisors
DEMOGRAPHICS Fort Worth, TX POPULATION 1 Mile 3 Mile 5 Mile 2022 Projection 20,488 152,586 271,676 2017 Estimate 18,979 141,606 252,173 2010 Census 16,971 128,164 227,509 Growth 2017-2022 7.95% 7.75% 7.73% Growth 2010-2017 11.83% 10.49% 10.84% HOUSEHOLDS 1 Mile 3 Mile 5 Mile 2022 Projection 7,855 55,700 98,859 2017 Estimate 7,279 51,734 91,738 2010 Census 6,523 47,027 82,885 Growth 2017-2022 7.91% 7.67% 7.76% Growth 2010-2017 11.59% 10.01% 10.68% INCOME 1 Mile 3 Mile 5 Mile 2017 Avg Household Income $68,584 $72,612 $77,602 Matthews Retail Advisors 11
AERIAL MAP TX 12 Matthews Retail Advisors
REGIONAL MAP TX Matthews Retail Advisors 13
Offering Memorandum RECENT SALES 14 Matthews Retail Advisors
MARKET ASSESSMENT Sales Comparables Property Name Property Address Sale Date Sales Price Cap Rate Years Remaining Year Built Gross Leasable Area 9215 Warren Pkwy. Frisco, TX For Sale $2,287,000 5.65% 15 2008 5,000 SF 6530 N Central Expy Dallas, TX 11/17/2016 $1,757,000 6.41% 8 2008 3,377 SF 6457 Camp Bowie Blvd. Fort Worth, TX 2/2/2015 $675,000 7.70% 4 1989 2,548 SF 1433 Broadway St. Pearland, TX 8/13/2015 $1,800,000 8.00% 2 2009 6,600 SF 3217 Harwood Rd. Bedford, TX 5/1/2015 $1,020,000 7.50% 9 1988 2,864 SF Matthews Retail Advisors 15 15
Jiffy Lube Portfolio Alexandria & Ville Platte, LA PERFORMANCE Matthews Retail Advisors Advantage THE DEFINITIVE MARKET LEADER Matthews Retail Advisors is ranked #1 in retail transactions according to data as reported by CoStar. OVER 2,266 TRANSACTIONS MORE THAN $11.2 BILLION CLOSED 94% ESCROW-TO- CLOSE RATE 93% SALES-TO-LIST- PRICE LEADING THE MARKET IN RETAIL VERTICAL TRANSACTIONS BY VOLUME INCLUDING: Shopping Centers Auto Parts Casual Dining Convenience Stores Dollar Stores Drug Stores QSR 16 Matthews Retail Advisors
Offering Memorandum CLIENTS Matthews Retail Advisors 17
Jiffy Lube Portfolio Alexandria & Ville Platte, LA Matthews Marketing Difference THE STRATEGY Best In-House Database - for unprecedented flexibility, exposure and targeting All other brokers must rely on Real Capital Markets ( RCM ) to expose their assets to the marketplace; however, without control of an internal proprietary database, they cannot fully promote the asset. RCM s primary goal is self-serving to minimize the number of unsubscribes. Our primary goal is aligned with our client s to sell the asset at the highest price. Digital Body Language Tracking - for actionable insights As investors interact with our integrated technology platform, their digital behavior is tracked and analyzed. Through understanding our buyer pool we are able to most effectively serve both buyer and seller as we execute a transaction. Real-Time Marketing and Segmentation - for direct access to investors Real-time data and audience segmentation enable your deal team to market your offering to the most qualified investors during the time at which they are most likely to consider the opportunity. Click-to-Sale Technology TM - for immediate follow-up and enhanced interaction. The point at which technology meets human interaction, your deal team is notified at the moment an investor has viewed or clicked on your property enabling your deal team to contact the interested party at the moment they are considering the investment. The sales waiting game is a thing of the past. Your deal team is notified at the moment an investor has viewed or clicked on your property, enabling your deal team to contact the interested party at the moment they are considering the investment. Structure & Specialization - to facilitate a successful close Upon connecting investor with investment, our in-house transaction management teams take a hands-on approach to managing your transaction to a close through detailed reporting and metrics, consistent follow-up, and escrow relationships. 18 Matthews 18 Retail Advisors
Offering Memorandum More Efficiency. Further Reach. Enhanced Interaction. THE PROCESS Foundational to the Matthews Difference is our proprietary infrastructure and intellectual property. Matthews integrated technology platform fuels our collaborative culture and enables us to provide our clients with a level of service unequaled by traditional real estate brokerages. Atlas TM, our centralized customer relationship management system (CRM) and database platform, combines sales and marketing strategy to connect qualified investors with qualified investment opportunities. Leveraging the industry s largest database of active investors, each listing is marketed through a 10-Touch Digital Marketing program purpose-built for delivering the right opportunity to the right investor. TEXT WEBSITE HTML FOLLOW-UP BROKER DAY 1: PERSONALIZED EMAIL A personalized email is sent to the most likely buyers according to their expressed interest. Broker makes outbound calls and answers inbound MATTHEWS.COM Sophisticated marketing drives buyers to look for the best deals on Matthews.com DAY 3: GRAPHIC EMAIL Graphical email is sent to a larger pool announcing the listing with investment highlights. Broker contacts buyers through Click-to- Sale Technology DAY 10: PERSONALIZED FOLLOW-UP Personalized email is sent from our integrated system to follow-up with the most interested buyers. The pool is expanded based on mean interest level DAY 24: GRAPHIC TO BROKERS Graphic email announcement is sent to brokers EXTERNAL 3RD PARTY RESEND HTML FOLLOW-UP DAY 24: EXTERNAL MARKETING Listing is extended to external marketing and multi-listing sites DAY 26: EXTENDED BUYER POOL Digital marketing is sent to third-party buyer pools to maximize exposure DAY 40: WIDE REACH Personalized email is sent from the system to the widest audience including investors and brokers who have and have not seen the deal DAY 47: MARKET SHARE Listing is included in vertical Market Share announcements, available listings and a graphic featured listing email DAY 50: PERSONALIZED EMAIL TO THE ENGAGED Personalized email is sent to buyers who showed interest through online activity & calls, both inbound and outbound Matthews Retail Advisors 19 19
DISCLAIMER AND CONTACT INFORMATION Disclaimer Statement. THIS IS NOT AN APPRAISAL: This Real Estate Broker s Opinion of Value is intended for the sole and exclusive use of John Warren ( the Client ) and may not be relied upon any person or entity other than the Client for any purpose whatsoever. This Real Estate Broker s Opinion of Value represents only the opinion of Matthews Retail Group, Inc. (also known as Matthews Retail Advisors) as to the value of the Subject Property, subject to the assumptions and qualifications set forth herein. Matthews Retail Group, Inc. is not licensed to perform real property appraisals. Accordingly, this Real Estate Broker s Opinion of Value does not constitute an appraisal of the Subject Property and has not been prepared in accordance with the Uniform Standards of Professional Appraisal Practice. The Real Estate Broker s Opinion of Value set forth herein is specifically qualified by, and based solely upon, the relevant facts, circumstances, and market conditions that exist as of the date of this Real Estate Broker s Opinion of Value, and we undertake no obligation to update, modify, or supplement this Real Estate Broker s Opinion of Value to the extent that such facts, circumstances or market conditions subsequently change. 20 Matthews Retail Advisors
PRESENTED BY Christopher Laskero STNL Capital Markets License No. 677086 (TX) O 214.692.2921 M 858.414.7849 christopher.laskero.@matthews.com Braden Crockett AVP & Director License No. 01946071 O 214.692.2040 M 714.345.6206 braden.crockett@matthews.com 21 Matthews Retail Advisors 21