LOUISIANA FRIED CHICKEN140+ LOCATIONS IN AZ, CA, IL, MI, SC, AND TX

PASADENA, TX (HOUSTON MSA)

LOUISIANA FRIED CHICKEN

5.00%CAP

$1,400,000PRICE

4015 RED BLUFF ROAD, PASADENA, TX 77503

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.

• Brand new 10-year lease featuring four 5-year options to extend, rentbumps, and zero landlord maintenance or management responsibilities

• Strong daytime population, providing high volume retail sales in theQSR sector

• Only fried chicken restaurant in the immediate vicinity

• Positioned within a regional trade area in the Houston MSA

• Multi-unit operator performing well above average

• Located off Beltway 8, a state highway with traffic counts exceeding100,000 VPD

LEASABLE SF3,516 SF

PRICE PSF$398.18

LEASE TYPEABSOLUTE NNN

LAND AREA0.74 AC

YEAR RENOVATED2018

PARKING37 SPACES

2

Overview

THE OFFERING is a freestanding Louisiana Fried Chicken quick-serve restaurant (QSR) with a new 10-year absolute net lease. The site is well positioned in the Pasadena market, a regional trade area in the Houston MSA, and the second largest city in Harris County boasting a population over 153,000 people. The density, demographic makeup, and high concentration of employment generators has long established Pasadena as a “proven” market for fast food/QSR users. Sale volumes for these users consistently exceed Houston average unit volumes (AUV) across multiple brands. The Franchisee is a multi-unit operator with 15 Louisiana Fried Chicken restaurants in the Houston MSA, and is actively expanding. The 10-year absolute net lease features four 5-year options, 10% rental increases every five years, and a percentage rent clause paying the Landlord an additional amount equivalent to 3.5% of sales over $2 Million. NEIGHBORING RETAILERS include Cinemark, Hobby Lobby, McDonald’s, Jack in the Box, Taco Bell, Taco Cabana, Whataburger, Pappas BBQ, and Amegy Bank.

JOE CACCAMOjcaccamo@capitalpacific.comPH: 415.274.7394CA BRE# 01191110

Contact the team

IN CONJUNCTION WITH TX LICENSED BROKER: Steve SielingAzur Commercial Capital, LLC214.888.8262

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.

PASADENA is located less than 20 minutes from downtown Houston, the largest city in Texas and the fourth-largest city in the United States. The Houston MSA has a population of over 6.77 million residents making it the fifth-largest MSA in the United States. Houston is home to George Bush International Airport, one of the country’s busiest airports, and The Texas Medical Center, which is the largest medical complex in the world, serving more than 10 million patients per year.

140+ LOCATIONS IN ARIZONA, CALIFORNIA, ILLINOIS, MICHIGAN, SOUTH CAROLINA, AND TEXAS 3

Investment Highlights

BUSINESS SUMMARY

KEY 1-MILE 3-MILES 5-MILES

TOTAL 1-MILE 3-MILES 5-MILES

Businesses 317 3,351 5,985

Employees 3,884 47,374 82,346

Residential Population 13,864 123,733 229,974

4

THE SUBJECT PROPERTY is located in the dense Pasadena trade area near the intersection of Pasadena Boulevard and Red Bluff Road, both of which are dedicated exits off Beltway 8, a major Texas highway with traffic counts exceeding 100,000 VPD. The trade area also boasts an enormous daytime population driven by industry on an international scale.

The Houston Ship Channel is 25 miles long and lies directly north of the subject property. The Port of Houston is consistently ranked #1 in the United States across multiple categories and provides over 1.2 million jobs across Texas. Another major driver and employment source is the petrochemical industry and refineries that line the ship channel throughout the Pasadena market. Every major oil & gas player has an established presence and multi-billion dollar facilities that employee thousands of people - many of whom reside in Pasadena.

Dense Trade Area

4

FAIRMONT PARKWAYFAIRMONT PARKWAY

PASADENA BOULEVARD

SPENCER HIGHWAY

SPENCER HIGHWAY

RED BLUFF ROAD

RED BLUFF ROAD

SAM

HO

USTO

N TO

LLWAY

SAN JACINTO COLLEGE CENTRAL

KINDRED HOSPITAL BAY AREA

CHI ST. LUKE’S

HEALTH

BAYSHORE MEDICAL CENTER

MIDDLE SCHOOL

HIGH SCHOOL

HIGH SCHOOL

MIDDLE SCHOOL

MIDDLE SCHOOL

JUNIOR HIGH

SCHOOL

JUNIOR HIGH

SCHOOL

HIGH SCHOOL

HIGH SCHOOL

JUNIOR HIGH

SCHOOL

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

18,838 VPD

22,509 VPD

22,530 VPD

21,245VPD

205,000 VPD

16,500 VPD

30,255 VPD

HOUSTON18 MILES

5

Aerial

100,000 VPDGULF FREEW

AY

SAM HOUSTON TOLL

WAY

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.

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.

PRICE $1,400,000 Price Per Square Foot: $398.18

Capitalization Rate: 5.00%

Total Rentable Area (SF): 3,516

Lot Size (AC): 0.74

STABILIZED INCOME PER SQUARE FOOTScheduled Rent $19.91 $70,000

Effective Gross Income $19.91 $70,000

LESS PER SQUARE FOOTTaxes NNN $0.00

Insurance NNN $0.00

Total Operating Expenses NNN $0.00

EQUALS NET OPERATING INCOME $70,000

6

Income & Expense

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.

TENANT INFO LEASE TERMS RENT SUMMARY

TENANT NAME SQ. FT. CURRENT RENT

MONTHLY RENT

YEARLY RENT

MONTHLY RENT/FT

YEARLY RENT/FT

Louisiana Fried Chicken 3,516 2/1/2018 1/31/2023 $70,000 $5,833 $70,000 $1.66 $19.91

2/1/2023 1/31/2028 $6,417 $77,000 $1.82 $21.90

Option 1 2/1/2028 1/31/2033 $7,058 $84,700 $2.01 $24.09

Option 2 2/1/2033 1/31/2038 $7,764 $93,170 $2.21 $26.50

Option 3 2/1/2038 1/31/2043 $8,541 $102,487 $2.43 $29.15

Option 4 2/1/2043 1/31/2048 $9,395 $112,736 $2.67 $32.06

TOTALS: 3,516 $70,000 $5,833 $70,000 $1.66 $19.91

*Percentage Rent Clause: Landlord receives percentage rent of 3.5% of sales over $2 million.

7

Rent Roll

RED BLUFF ROAD

RED BLUFF ROAD

PASADENA BOULEVARD

PASADENA BOULEVARD

SAM

HO

UST

ON

TO

LLW

AY

PYLON SIGN

18,838 VPD

16,500 VPD

30,255 VPD

Site Plan

8This site plan is a rendering that has been created based on sources we believe to be reliable. 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.

37SPACES

3,516RENTABLE SF

0.74ACRES

SITE

8

Site Plan

Louisiana Fried Chicken is an American fast food chain originally founded in Los Angeles, California, and now headquartered in Dallas, Texas. It is a franchise company with over 148 locations in Arizona, California, Illinois, Michigan, South Carolina, and Texas. The growing chain’s success has been featured in articles which highlight Louisiana Fried Chicken’s journey from humble beginnings to a multi-state franchise.

ABOUT LOUISIANA FRIED CHICKEN

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.

LOCATIONS IN ARIZONA, CALIFORNIA, ILLINOIS, MICHIGAN, SOUTH CAROLINA, AND TEXAS148+

9

Tenant Overview

POPULATION

1-MILE 3-MILES 5-MILES

2010 13,092 115,133 212,209

2018 13,864 123,733 229,974

2023 14,367 128,869 240,154

2018 HH INCOME

1-MILE 3-MILES 5-MILES

Average $63,587 $74,341 $71,515

Median $50,089 $56,434 $53,957

TOP EMPLOYERS IN HOUSTON

EMPLOYER # OF EMPLOYEES

Walmart 37,000

Memorial Hermann Health System 24,108

H-E-B 23,732

University of Texas 21,086

Houston Methodist 20,000

PASADENA

THE AVERAGE HOUSEHOLD INCOME WITHIN A 3-MILE RADIUS

IS OVER $74K

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

Demographics

PASADENA,TEXAS

PASADENA is located in Harris County and is in the Houston-The Woodlands-Sugar Land metropolitan area. An estimated 153,520 people live in Pasadena, ranking the city the 2nd largest in the Houston MSA and the 17th largest in Texas. Pasadena is located less than 20 minutes from downtown Houston. The city’s key economic sectors include exploration for petroleum and gas, petroleum refining, petrochemical processing, solar panel manufacturing, maritime shipping, aerospace and health care. The Bayport Industrial District located in Harris County is one of the nation’s largest chemical processing complexes and one of the top employers for the Pasadena area.

HOUSTON is the fourth-largest city in the United States and the largest city within the state of Texas. The city has a population of about 2.3 million within an area of 656 square miles.

Houston is the seat of Harris County and the economic center of Greater Houston, the fifth-largest metropolitan area in the U.S. with a population over 6.7 million. Houston’s economy has a broad industrial base in the energy, manufacturing, aeronautics, transportation, and health care sectors and is a leading center for building oil field equipment; only New York City is home to more Fortune 500 headquarters in the city limits.

HOUSTONMSA

6.77 MILLIONHOUSTON MSA POPULATION (ESTIMATED) 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.

DOWNTOWN HOUSTON

11

Location Overview

GENERAL STATS1ST LARGEST CITY IN TEXAS

5TH LARGEST MSA IN THE U.S.

20 FORTUNE 500 HEADQUARTERS RANKING 4TH AMONG METRO AREAS

1ST LARGEST MEDICAL COMPLEX IN THE WORLD

3.21 MILLION JOBS IN THE METRO

#7 U.S. NEWS & WORLD REPORT BEST PLACES TO LIVE

HOUSTON MSAHOUSTON MSA - The subject property is located 20 minutes from downtown Houston, the fourth-largest city in the United States and the largest city within the state of Texas. The Houston MSA has a population of over 6.77 million residents across nine counties and is the fifth-largest MSA in the United States. Houston is home to two major airports, George Bush International Airport, one of the country’s busiest airports and international hubs, and William P. Hobby Airport. The Texas Medical Center, located in Houston, is the largest medical complex in the world, serving more than 10 million patients per year. Houston boasts more than 14 colleges and universities offering higher education options to more than 315,000 students enrolled in over 500 degree and certification programs in the city. The city has major profession league teams in almost every sport including: MLB - the Houston Astros, NBA - the Houston Rockets, NFL - the Houston Texans, MLS - the Houston Dynamo, and MLR - the Houston Sabercats.

Houston MSA

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.

#1 BEST CITY FOR COLLEGE GRADUATES NAMED BY MONEY MAGAZINE

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.

Major Economic Drivers in Pasadena

HOUSTON SHIP CHANNEL: Consistently ranked 1st in U.S. Imports, 1st in U.S. Tonnage, and contributes to over 1.2M jobs throughout Texas.

BAYPORT INDUSTRIAL DISTRICT: One largest private industrial developments in the U.S., with over 60 chemical plants/refineries.

BAYPORT SHIPPING TERMINAL: Contains a new major cargo container shipping terminal which is operated by the Port of Houston Authority.

BAYSHORE MEDICAL CENTER: Offers 364 licensed beds. The Medical Center includes a Neonatal Intensive Care Unit (NICU) and offers outstanding level of care services including Advanced Wound Care Center and Cardiovascular & Cardiology Services.

NESTLE WATER: The largest bottled water brand in the world, opened a Pasadena facility five years ago and has already expanded, now bottling 72,000 bottles of water an hour.

SILVER EAGLE: Silver Eagle, the nation’s largest Anheuser-Busch distributor, opened a 400,000 sf facility in Pasadena in 2014. The addition of Pasadena is the distributor’s eighth facility in Texas, with its corporate headquarters and warehouse in Houston. A little over 200 of Silver Eagle’s more than 1,300 employees office out of the Pasadena facility, including positions in sales, warehouse, administration and fleet.

For more on Pasadena & Houston click HERE & HERE.

NESTLE WATER

SILVER EAGLE

13

We’d love to hearfrom you.

CAPITAL PACIFIC COLLABORATES. CLICK HERE TO MEET OUR SAN FRANCISCO TEAM:

JOE CACCAMOjcaccamo@capitalpacific.comPH: 415.274.7394CA BRE# 01191110

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.

IN CONJUNCTION WITH TX LICENSED BROKER: Steve SielingAzur Commercial Capital, LLC214.888.8262

JOE CACCAMOJOHN ANDREINI

ZANDY SMITH

DAVE LUCAS

RICK SANNER JACK NAVARRA

CHRIS KOSTANECKIZEB RIPPLE CHRIS PETERS

JUSTIN SHARP

Copyright © 2018 Capital Pacific Partners

SFO. PDX. SEA. CAPITALPACIFIC.COM

11-2-2015

TYPES OF REAL ESTATE LICENSE HOLDERS: A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker. A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.

A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): Put the interests of the client above all others, including the broker’s own interests; Inform the client of any material information about the property or transaction received by the broker; Answer the client’s questions and present any offer to or counter-offer from the client; and Treat all parties to a real estate transaction honestly and fairly.

A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:

AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner's agent must perform the broker’s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer’s agent.

AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer's agent must perform the broker’s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by the seller or seller’s agent.

AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligations as an intermediary. A broker who acts as an intermediary:

Must treat all parties to the transaction impartially and fairly; May, with the parties' written consent, appoint a different license holder associated with the broker to each party (owner and

buyer) to communicate with, provide opinions and advice to, and carry out the instructions of each party to the transaction. Must not, unless specifically authorized in writing to do so by the party, disclose:

ᴑ that the owner will accept a price less than the written asking price;ᴑ that the buyer/tenant will pay a price greater than the price submitted in a written offer; andᴑ any confidential information or any other information that a party specifically instructs the broker in writing not to

disclose, unless required to do so by law.

AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.

TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: The broker’s duties and responsibilities to you, and your obligations under the representation agreement. Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.

LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker’s services. Please acknowledge receipt of this notice below and retain a copy for your records.

Information About Brokerage Services Texas law requires all real estate license holders to give the following information about

brokerage services to prospective buyers, tenants, sellers and landlords.

.

Designated Broker of Firm License No. Email Phone

Licensed Supervisor of Sales Agent/Associate

License No. Email Phone

Licensed Broker /Broker Firm Name or Primary Assumed Business Name

License No. Email Phone

Regulated by the Texas Real Estate Commission Information available at www.trec.texas.gov

IABS 1-0

Date Buyer/Tenant/Seller/Landlord Initials

Sales Agent/Associate’s Name License No. Email Phone