NOR

NEW BRAUNFELS, TX

ABSOLUTE NNN GROUND LEASE | HIGHWAY FRONTAGE | ESTABLISHED LOCATION WITH HIGH VOLUMES

PILOT TRAVEL CENTER & MCDONALD’S

Contact the team

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.

RICK SANNERrsanner@capitalpacific.comPH: 415.274.2709CA DRE# 01792433

IN CONJUNCTION WITH TX LICENSED BROKER: Peter Ellis210.325.7578peter.e@sbcglobal.net

2

PILOT TRAVEL CENTER & MCDONALD’S4142 LOOP 337, NEW BRAUNFELS, TX 78132

DOMINATE LOCATION WITH HIGH SALES VOLUMES

3.85%CAP

$4,675,325PRICE

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.

3

Investment Summary

NOI: $180,000

LEASE TYPE: ABSOLUTE NET GROUND LEASE

LEASE TERM: 20 YEARSLEASABLE AREA: 14.67 ACRESBUILDING SIZE: 10,453 SFPUBLIC PARKING: 120 SPACESPRIME PARKING: 18 SPACESYEAR BUILT: 2007

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.

THE OFFERINGThe subject property is strategically located just off of Highway 35, fronting Loop 337, in New Braunfels, TX. This location benefits from high traffic counts and excellent highway visibility. Located between San Antonio and Austin, New Braunfels is the second fastest growing city in the U.S.

The subject property offers a buyer the unique opportunity to acquire a 14.67 acre parcel ground leased to Pilot Flying J well below replacement cost (contact broker for details). In addition to 9 diesel truck lanes and 8 gasoline pumps, included in the offering is a 10,453 square foot convenience store featuring sub-tenants McDonald’s, Subway and Cinnabon. The addition of these three nationally branded restaurants has two important benefits: bringing more customer traffic and visibility to the site, while simultaneously lowering Pilot’s occupancy costs. Additional onsite amenities can be found here.

• Large Parcel – 14.67 Acres• 20-year absolute NNN ground lease• 10% rental increases every 5 years• Corporate Guarantee from the largest operator of travel

centers in North America• Over 750 Locations and $20 Billion in revenue• Second fastest growing city in the U.S.

HIGHLIGHTS

In addition to the location and beneficial lease terms, with over 750 locations and $20 billion in annual revenue, Pilot Flying J is North America’s largest operator of travel centers. In addition to the strength of Pilot, in October of 2017 it was announced that Warren Buffett-controlled Berkshire Hathaway made a significant investment in the company, acquiring 38.6%. By 2023 Berkshire Hathaway will be the majority stakeholder with an additional purchase of 41.4%, bringing their total to 80%, and the current ownership retaining the remaining 20%.

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Investment Highlights

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 $4,675,325 Capitalization Rate: 3.85%

Total Rentable Area (acre)1 14.67

STABILIZED INCOME PER SQUARE FOOTScheduled Rent $12,270 $180,000

Effective Gross Income $12,270 $180,000

LESS PER SQUARE FOOTTaxes NNN $0.00

Insurance NNN $0.00

Total Operating Expenses NNN $0.00

EQUALS NET OPERATING $180,000

1 - The convenience store within the premises is approximately 10,453 square feet. A portion of the convenience store is subleased to McDonalds, Subway and Cinnabon. There are 9 diesel truck lanes and 8 gas pumps. For more information on additional amenities please click here.

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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. TERM CURRENT RENT

MONTHLY RENT

YEARLY RENT

MONTHLY RENT/FT

YEARLY RENT/FT

Pilot Travel Centers 639,025 05/07/20 12/31/24 $180,000 $15,000 $180,000 $0.02 $0.28

01/01/25 12/31/29 $16,500 $198,000 $0.03 $0.31

01/01/30 12/31/34 $18,480 $221,760 $0.03 $0.35

01/01/35 12/31/39 $20,697 $248,364 $0.03 $0.39

Option 1 01/01/40 12/31/44 $23,181 $278,172 $0.04 $0.44

Option 2 01/01/45 12/31/49 $25,962 $311,544 $0.04 $0.49

Option 3 01/01/50 12/31/54 $29,078 $348,936 $0.05 $0.55

Option 4 01/01/55 12/31/59 $32,567 $390,804 $0.05 $0.61

TOTALS: 639,025 $180,000 $15,000 $180,000 $0.02 $0.28

1 - The convenience store within the premises is approximately 10,453 square feet. A portion of the convenience store is subleased to McDonalds, Subway and Cinnabon. There are 9 diesel truck lanes and 8 gas pumps. For more information on additional amenities please click here.

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Rent Roll

Pilot Flying J is the largest operator of travel centers in North America with more than 750 locations in 44 states and six Canadian provinces. Headquartered in Knoxville, Tennessee, the company was formed in 2010 when Pilot Travel Centers merged with Flying J to create a new company. More than 28,000 people are employed by Pilot Flying J.

Located along interstates, the travel centers cater to both professional drivers and motorists selling gas, diesel, convenience store goods and fast food. Pilot Flying J serves more than 1.6 million guests a day and sells more than 7 billion fuel gallons annually.

Pilot Flying J Travel Centers offer a wide variety of services to professionals drivers, including parking reservations, restrooms and showers, laundry, wifi, game rooms, western union, check cashing and pay phones among other services.

ABOUT PILOT FLYING J

LOCATIONS IN 44 STATES, AND 6 CANADIAN PROVINCES

750

1.6 Million

GUESTS SERVED

DAILYThis 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.

$20 Billion 2019 ANNUAL REVENUE

7

Tenant Overview

2019 REVENUES

$21.1 Billion

McDonald’s is the world’s leading foodservice retailer with over 38,000 restaurants serving approximately 70 million people per day in 120 countries. McDonald’s primarily sells hamburgers, cheeseburgers, chicken, french fries, breakfast items, soft drinks, milkshakes and desserts. In response to changing consumer tastes, the company has expanded its menu to include salads, fish, wraps, smoothies and fruit.

In FY2019, McDonald’s saw $21.1 Billion in revenue and over $100 Billion in system-wide sales. The company had a 5.9% increase in global comparable sales, reflecting increases across all segements.

LOCATIONS IN 119 COUNTRIES38,000+

PEOPLE SERVED DAILY 70 Million

ABOUT MCDONALD’S

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.

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Sub-Tenant Overview

Retail Aerial

9This 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.

101,621VPD

27,026VPD

INTERSTATE 35 FRONTAGE ROADINTERSTATE 35 FRONTAGE ROAD

INTERSTATE 35 FRONTAGE ROADINTERSTATE 35 FRONTAGE ROAD

MORNINGSIDE ELEMENTARY

SCHOOL

35

337

Retail Aerial

10This 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.

101,621VPD

COUNTY LINE ELEMENTARY

MEMORIAL ELEMENTARY

SCHOOL

WALNUT SPRINGS

ELEMENTARY SCHOOL

27,026VPD

W SAN ANTONIO STREET

W SAN ANTONIO STREET

ALTGELT LANEALTGELT LANE

35

337

10

Retail Aerial

35

35

35

46

46

337

337

ACADEMY

LIBRARY

SCHOOL

MIDDLE SCHOOL

MIDDLE SCHOOL

MIDDLE SCHOOL

CITY OF NEW

BRAUNFELS CITY OF NEW

BRAUNFELS

HIGH SCHOOL

HILTOP RANCH

AIRPORT

HIGH SCHOOL

HIGH SCHOOL

CONVENTION CENTER

COMAL COUNTY

FAIR

COMAL COUNTY

COMAL COUNTY

GOLF COURSE

AQUATICS CENTER

SPORTS COMPLEX

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL ELEMENTARY

SCHOOL

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

ELEMENTARY SCHOOL

RESOLUTE HEALTH

HOSPITAL

SANTA ROSA

HOSPITALNEW

BRAUNFELS REGIONAL AIRPORT

17,630 VPD

106,484 VPD

18,852 VPD

21,246 VPD

33,607 VPD

SAN ANTONIO

11This 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.

AUSTIN109,481

VPD

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Aerial

POPULATION

1-MILE 3-MILES 5-MILES

2010 3,792 31,608 54,029

2019 4,722 42,680 74,311

2024 4,722 47,788 84,365

2019 HH INCOME

1-MILE 3-MILES 5-MILES

Average $56,628 $87,203 $87,253

Median $43,167 $63,807 $64,380

SAN ANTONIO-NEW BRAUNELS MSA TOP EMPLOYERS

EMPLOYER # OF EMPLOYEES

Lackland Air Force Base 37,000

Fort Sam Houston-U.S. Army 32,000

H-E-B 20,000

USAA 18,305

Randolph Air Force Base 11,000

NEW BRAUNFELS

THE AVERAGE HOUSEHOLD INCOME WITHIN A 3-MILE RADIUS IS OVER $87K

SAN MARCOS

SEGUIN

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 (30 MILES)

AUSTIN (56 MILES)

BLANCO

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Demographics

NEW BRAUNFELS, TEXAS

NEW BRAUNFELS, the second fastest growing city in the U.S., is located in Texas Hill Country, conveniently set astride the Interstate-35 corridor between San Antonio and Austin. New Braunfels has two rivers–the Comal and Guadalupe, which meet in the center of the city.

Founded in 1845 by German settlers, New Braunfels is overflowing with old world heritage and small town Texas charm. From boundless adventures on two beautiful rivers to wholesome entertainment at Schlitterbahn Waterpark and Natural Bridge Wildlife Ranch & Caverns, the activities and sights are endless. The city is also home to Texas’ oldest bakery, oldest dance hall, and Wurstfest an annual 10-day salute to sausage.

SAN ANTONIO–NEW BRAUNFELS (or Greater San Antonio) is an eight-county metropolitan area in central Texas.

San Antonio is seventh most populous city in the U.S., and the second most populous city in Texas. Home to numerous historical and cultural sites, including The Alamo; the world famous River Walk, and Sea World, among many other attractions. The city also has one of the largest concentrations of military bases in the U.S. The defense industry in San Antonio employs over 190,000 and provides a $27.7 billion regional economic impact.

THE COMAL RIVER

2.47 MILLIONGREATER SAN ANTONIO 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. 13

Location Overview

Contact us.

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

CAPITALPACIFIC.COM

Copyright © 2020 Capital Pacific Partners

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.

RICK SANNERrsanner@capitalpacific.comPH: 415.274.2709CA DRE# 01792433

IN CONJUNCTION WITH TX LICENSED BROKER: Peter Ellis210.325.7578peter.e@sbcglobal.net

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.

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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.

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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