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OFFERING MEMORANDUM Absolute Triple Net (NNN) Lease Investment Opportunity 4513 Highway 6 N | Houston, TX 77084 Representative Image

Jiffy Lube - Houston, TX · Jiffy Lube International, Inc. (“Jiffy Lube”), with more than 2,000 franchised service centers in North America, serves approximately 20 million customers

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Page 1: Jiffy Lube - Houston, TX · Jiffy Lube International, Inc. (“Jiffy Lube”), with more than 2,000 franchised service centers in North America, serves approximately 20 million customers

OFFERING MEMORANDUM Absolute Triple Net (NNN) Lease Investment Opportunity

4513 Highway 6 N | Houston, TX 77084Representative Image

Page 2: Jiffy Lube - Houston, TX · Jiffy Lube International, Inc. (“Jiffy Lube”), with more than 2,000 franchised service centers in North America, serves approximately 20 million customers

03 INVESTMENT SUMMARY• Investment Summary• Investment Highlights

05 AREA OVERVIEW• Location Map• Aerial & Retail Maps• City Overview

09 TENANT OVERVIEW • Tenant Profile

10 LEASE ABSTRACT• Lease Summary• Rent Roll

Exclusively Marketed By: Sands Investment Group

© 2018 Sands Investment Group (SIG). The information contained in this ‘Offering Memorandum,’ has been obtained from sources believed to be reliable. Sands InvestmentGroup does not doubt its accuracy, however, Sands Investment Group makes no guarantee, representation or warranty about the accuracy contained herein. It is theresponsibility of each individual to conduct thorough due diligence on any and all information that is passed on about the property to determine it’s accuracy and completeness.Any and all projections, market assumptions and cash flow analysis are used to help determine a potential overview on the property, however there is no guarantee or assurancethese projections, market assumptions and cash flow analysis are subject to change with property and market conditions. Sands Investment Group encourages all potentialinterested buyers to seek advice from your tax, financial and legal advisors before making any real estate purchase and transaction.

Representative Image

Ashley SayeLic. # 01955010

424.334.0750 | [email protected]

In Cooperation with Sands Investment Group Austin, LLC - Lic # 9004706

Kaveh EbrahimiLic. # 01896322

310.853.1426 | [email protected]

Page 3: Jiffy Lube - Houston, TX · Jiffy Lube International, Inc. (“Jiffy Lube”), with more than 2,000 franchised service centers in North America, serves approximately 20 million customers

Representative Image3

INVE

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RY PROPERTY SUMMARY

ADDRESS 4513 Highway 6 N

Houston, TX 77084

COUNTY Harris

BUILDING AREA 1,936 SF

LAND AREA 0.30 Acres

BUILT 1987

OFFERING SUMMARY

PRICE $846,000

CAP 5.50%

NOI $46,571

PRICE PER SF $436.98

LEASE TERM 7+ Years

LEASE GUARANTY Allied Lube

Page 4: Jiffy Lube - Houston, TX · Jiffy Lube International, Inc. (“Jiffy Lube”), with more than 2,000 franchised service centers in North America, serves approximately 20 million customers

Investment Summary

Absolute NNN Lease

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Representative Image

• Absolute Triple Net (NNN) Lease with Zero Landlord Responsibilities

• Strong Guaranty Lease with 7+ Years Remaining and Four (4) x Five (5) Year Options to Extend

• Trophy NNN Retail Asset with Strong Barriers to Entry

• Located in the Most Populous City in Texas

• Over 8.5% Population and Household Growth in a 3-Mile Radius of the Property

• Unemployment Rate Significantly Below the National Level

• Houston is By Far the Country's No. 1 Job Creator and Home to 26 Fortune 500 Companies

• Neighboring Tenants Include: Walmart, Taco Bell, Popeyes, Denny’s, Valero, Pizza Hut, Burger King, Starbucks, McDonald’s, Chase, Domino’s and More

Page 5: Jiffy Lube - Houston, TX · Jiffy Lube International, Inc. (“Jiffy Lube”), with more than 2,000 franchised service centers in North America, serves approximately 20 million customers

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SUBJECT PROPERTY DEMOGRAPHICS

3 Mile 5 Mile 10 Mile

Population 23,559 46,164 76,891

Average Household Income $68,146 $60,218 $60,249

Page 8: Jiffy Lube - Houston, TX · Jiffy Lube International, Inc. (“Jiffy Lube”), with more than 2,000 franchised service centers in North America, serves approximately 20 million customers

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IEW ABOUT THE CITY

Houston, TX is the most populous city in Texas and the fourth-most populous city in the UnitedStates, located in Southeast Texas near the Gulf of Mexico. In 2017 the population was 2.388million within an area of 667 square miles making this the largest city in the Southern UnitedStates, as well as the seat of Harris County. It is the principal city of Houston–The Woodlands–Sugar Land, which is the fifth-most populated metropolitan area in the United States. Houstonboasts more than 40 colleges, university and institutions - offering higher education options tosuit all interests.

ECONOMYHouston's economy has a broad industrial base in energy, manufacturing, aeronautics, andtransportation. It is also leading in health care sectors and building oilfield equipment; only NewYork City is home to more Fortune 500 headquarters within its city limits. The Port of Houstonranks first in the United States in international waterborne tonnage handled and second in totalcargo tonnage handled. Nicknamed the "Space City,” Houston is a global city, with strengths inbusiness, international trade, entertainment, culture, media, fashion, science, sports, technology,education, medicine, and research.

CULTURE & CONTEMPORARY LIFEThe city has a population from various ethnic and religious backgrounds and a large and growinginternational community. Houston is the most diverse city in Texas and has been described as themost diverse in the United States. It is home to many cultural institutions and exhibits, whichattract more than 7 million visitors a year to the Museum District. Houston has an active visualand performing arts scene in the Theater District and offers year-round resident companies in allmajor performing arts. The Grand Prix of Houston, an annual auto race on the IndyCarSeries circuit is held in Reliant Park.

Page 9: Jiffy Lube - Houston, TX · Jiffy Lube International, Inc. (“Jiffy Lube”), with more than 2,000 franchised service centers in North America, serves approximately 20 million customers

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COMPANY TYPESubsidiary

HEADQUARTERSHouston, TX

# OF LOCATIONS2,000+

FOUNDED1979

WEBSITEjiffylube.com

TECHNICIANS20,000+

Jiffy Lube International, Inc. (“Jiffy Lube”), with more than 2,000 franchisedservice centers in North America, serves approximately 20 million customerseach year. Jiffy Lube pioneered the fast oil change industry in 1979 byestablishing the first drive-through service bay, providing customers with fast,professional service for their vehicles.

More than 20,000 technicians who have completed an extensive trainingprogram certified by the National Institute Automotive Service Excellence(ASE) nurse vehicles at Jiffy Lube.Headquartered in Houston, Jiffy Lube is a wholly owned, indirect subsidiary

of Shell Oil Company.

In June 2011, Jiffy Lube introduced a new program called Oil ChangeSchedule (OCS). The new program allows Jiffy Lube customers to choosehow often they have their oil changed based on a number of variablesincluding vehicle manufacturer recommendations, driving habits, and roadconditions. The OCS program moves away from the old model of changingoil every 3,000 miles and provides a schedule that is unique for each driver.

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Page 10: Jiffy Lube - Houston, TX · Jiffy Lube International, Inc. (“Jiffy Lube”), with more than 2,000 franchised service centers in North America, serves approximately 20 million customers

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TLEASE SUMMARY

TENANT Allied Lube

PREMISESA Building of Approximately

1,936 SF

LEASE COMMENCEMENT October 1, 2005

LEASE EXPIRATION September 30, 2025

LEASE TERM 7+ Years

RENEWAL OPTIONS 4 x 5 Years

RENT INCREASES 7.73% Every 5 Years

LEASE TYPE Absolute Triple Net (NNN)

USE Auto Repair

PROPERTY TAXES Tenant’s Responsibility

INSURANCE Tenant’s Responsibility

COMMON AREA Tenant’s Responsibility

ROOF & STRUCTURE Tenant’s Responsibility

REPAIRS & MAINTENANCE Tenant’s Responsibility

HVAC Tenant’s Responsibility

UTILITIES Tenant’s ResponsibilityRepresentative Image

Page 11: Jiffy Lube - Houston, TX · Jiffy Lube International, Inc. (“Jiffy Lube”), with more than 2,000 franchised service centers in North America, serves approximately 20 million customers

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LLTENANTNAME

SQUAREFOOTAGE

% OF TOTAL

ANNUALBASE RENT

RENT / SF

INCREASE DATES

LEASEBEGIN

LEASE END OPTIONS

Allied Lube 1,936 SF 100% $46,571 $24.06 7.73% Every 5 Years 10/01/2005 09/30/2025 4 x 5 Years

Page 12: Jiffy Lube - Houston, TX · Jiffy Lube International, Inc. (“Jiffy Lube”), with more than 2,000 franchised service centers in North America, serves approximately 20 million customers

The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed onlyby the party receiving it from Sands Investment Group and should not be made available to any other person or entity without the writtenconsent of Sands Investment Group.

This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establishonly a preliminary level of interest in the subject property.

The information contained herein is not a substitute for a thorough due diligence investigation, and makes no warranty or representation,with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size andsquare footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, thecompliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or businessprospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property.

The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, SandsInvestment Group has not verified, and will not verify, any of the information contained herein, nor has Sands Investment Group conductedany investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completenessof the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

By receipt of this Memorandum, you agree that this Memorandum and its contentsare of confidential nature, that you will hold and treat it in the strictest confidence andthat you will not disclose its contents in any manner detrimental to the interest of theOwner. You also agree that by accepting this Memorandum you agree to releaseSands Investment Group and hold it harmless from any kind of claim, cost, expense,or liability arising out of your investigation and/or purchase of this property.

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Page 13: Jiffy Lube - Houston, TX · Jiffy Lube International, Inc. (“Jiffy Lube”), with more than 2,000 franchised service centers in North America, serves approximately 20 million customers

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ESefore working with a real estate broker, you should know that the duties of aBroker depend on whom the broker represents. If you are a prospective selleror landlord (owner) or a prospective buyer or tenant (buyer), you should know

IF THE BROKER REPRESENTS THE OWNER:The broker becomes the owner's agent by entering into an agreement with theowner, usually through a written listing agreement, or by agreeing to act as asubagent by accepting an offer of sub agency from the listing broker. A subagentmay work in a different real estate office. A listing broker or subagent can assist thebuyer but does not represent the buyer and must place the interests of the ownerfirst. The buyer should not tell the owner's agent anything the buyer would not wantthe owner to know because an owner's agent must disclose to the owner anymaterial information known to the agent.

IF THE BROKER REPRESENTS THE BUYER:The broker becomes the buyer's agent by entering into an agreement to representthe buyer, usually through a written buyer representation agreement. A buyer'sagent can assist the owner but does not represent the owner and must place theinterests of the buyer first. The owner should not tell a buyer's agent anything theowner would not want the buyer to know because a buyer's agent must disclose tothe 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 withthe Texas Real Estate License Act. The broker must obtain the written consent ofeach party to the transaction to act as an intermediary. The written consent muststate who will pay the broker and, in conspicuous bold or underlined print, set forththe broker's obligations as an intermediary.

B The broker is required to treat each party honestly and fairly and to complywith The Texas Real Estate License Act. A broker who acts as anintermediary in a transaction:(1) Shall treat all parties honestly;(2) May not disclose that the owner will accept a price less than the askingprice unless authorized in writing to do so by the owner;(3) May not disclose that the buyer will pay a price greater than the pricesubmitted in a written offer unless authorized in writing to do so by thebuyer; and(4) May not disclose any confidential information or any information that aparty specifically instructs the broker in writing not to disclose unlessauthorized in writing to disclose the information or required to do so byThe Texas Real Estate License act or a court order or if the informationmaterially relates to the condition of the property.

With the parties' consent, a broker acting as an intermediary between theparties may appoint a person who is licensed under The Texas Real EstateLicense Act and associated with the broker to communicate with and carryout instructions of one party and another person who is licensed under theAct and associated with the broker to communicate with and carry outinstructions of the other party.

If you choose to have a broker represent you,you should enter into a written agreement with the broker that clearlyestablishes the broker's obligations and your obligations. The agreementshould state how and by whom the broker will be paid. You have the rightto choose the type of representation, if any, you wish to receive. Yourpayment of a fee to a broker does not necessarily establish that the brokerrepresents you. If you have any questions regarding the duties andresponsibilities of the broker, you should resolve those questions beforeproceeding.

that the broker who lists the property for sale or lease is the owner's agent. A brokerwho acts as a subagent represents the owner in cooperation with the listing broker. Abroker who acts as a buyer's agent represents the buyer. A broker may act as anintermediary between the parties if the parties consent in writing. A broker can assistyou in locating a property, preparing a contract or lease, or obtaining financingwithout representing you. A broker is obligated by law to treat you honestly.

Page 14: Jiffy Lube - Houston, TX · Jiffy Lube International, Inc. (“Jiffy Lube”), with more than 2,000 franchised service centers in North America, serves approximately 20 million customers

Representative Image

Exclusively Marketed By:

Sands Investment Group2101 S IH 35, Suite 402

Austin, TX 78741844.4.SIG.NNN

www.SIGnnn.com

Ashley SayeLic. # 01955010

424.334.0750 | [email protected]

In Cooperation with Sands Investment Group Austin, LLC Lic # 9004706

Kaveh EbrahimiLic. # 01896322

310.853.1426 | [email protected]