Nicole Key

OFFERING MEMORANDUMOFFERING MEMORANDUM

Single-tenant Absolute Net Lease Investment825 North Belt Line Road· Irving, Texas

CONFIDENTIALITY & DISCLOSURE AGREEMENT

Sacramento, California Reno, Nevada

825 N. Belt Line Rd

Irving, Texas

Northgate Commercial Real Estate (“Broker”) has been authorized by the Seller of the Property (“Seller”) to prepare and distribute theenclosed information for the purpose of soliciting offers to purchase from interested parties. Additional information in the possession of theSeller including but not limited to financial, tenant, title, and building can be made available upon request following the mutual execution ofletter of intent (LOI) and/or Purchase and Sale Agreement (PSA). All prospective Buyers may at the request of Seller, be required to submitfinancials and references to demonstrate Purchasers ability to close on the purchase of the property. The eventual Purchaser shall be selectedon the Sellers assessment of the price, terms, and the ability to close the transaction and such conditions as set for in the contract. Seller,reserves the right to simultaneously negotiate with multiple Purchasers at Seller’s sole discretion. Prospective purchasers and their agents maynot enter the property or disturb the tenant without Brokers consent. All property tours shall be conducted by appointment only and mustbe coordinated by Broker. All the information contained in this offering memorandum has been obtained by sources deemed reliable but arenot guaranteed. Prospective Purchasers shall bear the responsibility of conducting their own investigations on the property and review of thedue diligence materials as provided by the Seller.

OFFERING MEMORANDUM 2

TABLE OF CONTENTS825 N. Belt Line Rd

Irving, Texas

OFFERING MEMORANDUM 3

EXECUTIVE & INVESTMENTSUMMARY

4

PROPERTY OVERVIEW 5

PROPERTY SUMMARY 6

FINANCIAL OVERVIEW& RENT ROLL

7-8

TENANT PROFILES 9-11

MARKET INFORMATION 12

MARKET PROFILE 13

AERIAL | MARKET 14

AERIAL | REGIONAL 15

DEMOGRAPHICS 16-18

EXECUTIVE & INVESTMENT SUMMARY

INVESTMENT SUMMARY

MARKET VALUE $1,721,000

PRICE / SQUARE FOOT $168.07

CAP RATE ACTUAL 7.84%

CAP RATE PROFORMA 7.50%

NOI $129,000

OCCUPANCY 100%

GLA ± 10,213 Sq Ft

LOT SIZE ± 0.71

ASSET HIGHLIGHTS

• Single-tenant absolute net lease investment

• High traffic location in a Dallas Suburb

• Area Co-Tenants include Walgreens, DD’s Discount, Save-A-Lot,

AutoZone, 7 Eleven, Pizza Hut, Sonic Drive-In, and more

825 N. Belt Line Rd

Irving, Texas

TENANTS

• TitleMax

OFFERING MEMORANDUM 4

Belt Line Road

Conflans Road

PROPERTY OVERVIEW825 N. Belt Line Rd

Irving, Texas

OFFERING MEMORANDUM 5

PROPERTY SUMMARY

LOCATION:825 NORTH BELT LINE ROADIrving, Texas 75061

APN: 32-02466-00A-002-00-00

GLA: ± 10,213 Sq Ft

LOT SIZE: ± 0.71

YEAR BUILT: 1982

ZONING: C-N- Neighborhood Commercial

TRAFFIC COUNTS:

Belt Line Rd @ Site ± 35,000 ADT

Reno, Nevada

825 N. Belt Line Rd

Irving, TexasBelt Line Rd ±

35,000 ADT

OFFERING MEMORANDUM 6

FINANCIAL OVERVIEW

ESTIMATED OPERATING EXPENSES

Expense TypeOwner's 2017

Estimated2018 Proforma

Amount

Taxes $13,779 $46,347

Insurance $2,458 $2,458

CAMS $15,974 $15,974

Total $32,211 $64,779

Annual Per Square Foot $3.24 $6.33Monthly Per Square Foot $0.27 $0.54

ASSUMPTIONSProforma property tax rate: 2.693%

FINANCIAL STRUCTURE

Scheduled Gross Income Actual-In-Place

Rent ProformaAmount

Base Rent $140,833 $140,833Expense Recoveries $26,322 $52,936Other Income $0 $0Lease-Up Available Space $0 $0

Effective Gross Income $167,155 $193,769

Less Expenses $32,211 $64,779

Net Operating Income $134,944 $128,991

825 N. Belt Line Rd

Irving, Texas

OFFERING MEMORANDUM 7

TENANT PROFILE TENANT PROFILE

OFFERING MEMORANDUM 8

TENANT PROFILE About Kelly-Moore Paints

Mission: To provide high quality, innovative products with exceptional service at a fair value.

History:In 1946, William H. Kelly and William E. Moore recognized the unique needs of professional painting contractorsfor top-quality paint products and knowledgeable, efficient service at a fair price. This philosophy has allowedKelly-Moore to grow from a single manufacturing facility and store in San Carlos, California, to one of the largestemployee-owned paint companies in the United States. Its reputation for quality products is unsurpassed in theindustry. The company produces some of the most technologically advanced paint products and sets theindustry standard for new product development and quality control, and retains the reputation of "The Painter'sPaint Store.”

Not just your neighborhood paint store:Kelly Moore has approximately 1,300 employees with nearly 150 retail paint stores and 120 IndependentDealers.

Employee Owned – You are working with an owner. In 1998, Mr. and Mrs. William E. Moore established theKelly-Moore Paint Company Employee Stock Ownership Program (ESOP). Creating this program ensured theMoore Family tradition of providing only the highest level of service will continue for years to come. Eachemployee-owner is committed to offering the best paint products along with exceptional customer serviceeveryday.

Manufacturing - Made in America Since 1946:Kelly-Moore has two strategically located, state-of-the-art manufacturing facilities in key markets: San Carlos,California and Hurst, Texas (outside Dallas). Our reputation for quality products is unsurpassed in theindustry. Kelly-Moore produces some of the most technologically advanced paint products and sets the industrystandard for new product development and quality control.Our manufacturing facility in San Carlos is also the recipient of five widely recognized green business awardsfrom the State of California and San Mateo County for outstanding efforts to reduce pollution and solid wasteand conserve water, energy and other natural resources.

Oklahoma City, Oklahoma

OFFERING MEMORANDUM 9

825 N. Belt Line Rd

Irving, Texas

TENANT PROFILE

About TitleMax is one of the nation’s largest title lending companies. Every day, TitleMax helps thousands of people get the cash they need with a title loan ortitle pawn. We offer rates that are very competitive, while providing a superior level of customer service. Since the first stores opening in 1998 inGeorgia, TitleMax has expanded to over 1,100 locations spanning 17 states. With over 5000 employees nationwide, we pride ourselves on providingcustomers with clarity and confidence. You’ll rest easy knowing TitleMax is here to help.

About TitleMax

825 N. Belt Line Rd

Irving, Texas

TitleMax cares about the communities we are in. We want the communitieswhere our stores are located to be a great place to work, live, grow and play.This is why TitleMax is involved with numerous organizations—locally andacross the United States!

OFFERING MEMORANDUM 10

MARKET INFORMATION 825 N. Belt Line Rd

Irving, Texas

OFFERING MEMORANDUM 11

MARKET PROFILE825 N. Belt Line Rd

Irving, Texas

Irving’s Top Employers

Company / Organization Employees

Citigroup, Inc. 5,700

Verizon 3,260

Irving Mall 2,100

Aegis Communications 2,000

Allstate Insurance 2,000

YRC Worldwide 1,941

Nokia 1,700

NEC Corporation of America 1,515

Microsoft 1,351

Neiman Marcus Direct 1,339

Irving is located between Dallas and Fort Worth in the heart of the Metroplex. Irving includes the Las Colinas community, one of the first master-planned developments in the United States and once the largest mixed-use development in the Southwest with a land area of more than 12,000 acres

• More than 217,000 people live in Irving, which boasts beautiful country clubs, golf courses, and highly acclaimed public, private, and charter schools

• Housing options range from urban lofts to executive neighborhoods

• The city is easily accessible with major highways run through the city and the Dallas Area Rapid Transit and Trinity Rail Express lines service Irving

• The fourth largest airport in the United States - the Dallas / Fort Worth International Airport - also is located in Irving and serves as the region’s global gateway

• Several large businesses have headquarters in Irving, including Chuck E. Cheese's, Commercial Metals, ExxonMobil, Gruma, H.D. Vest, Kimberly-Clark, La Quinta Inns and Suites, Michaels Stores, Southern Star Concrete, In. Stellar, a global contact center provider, Zale Corporation, Fluor Corporation, NCH Corporation, ITW Polymers Sealants North America, Celanese Corporation, a leading producer of specialty chemicals, and LXI Enterprise Storage

OFFERING MEMORANDUM 12

2

MARKET AERIAL

825 N. Belt Line Rd

Irving, Texas

North Belt Line Road

±37,000

ADT

Conflans Road ± 5,000 ADT

OFFERING MEMORANDUM 13

2

REGIONAL AERIAL

825 N. Belt Line Rd

Irving, Texas

OFFERING MEMORANDUM 14

DEMOGRAPHICS

Irving, Texas

10 mi radius

5 mi radius

1 mi radius

OFFERING MEMORANDUM 15

DEMOGRAPHICS

POPULATION 1 mile 5 miles 10 miles

2015 Estimated Population 21,130 243,614 938,918

2020 Projected Population 23,055 266,882 1,024,693

2010 Census Population 19,032 218,123 846,042

Projected Annual Growth 2015 to 2020 1,925 1.8% 23,268 1.9% 85,775 1.8%Historical Annual Growth 2000 to 2015 2,098 1.8% 25,491 1.9% 92,877 1.8%HOUSEHOLDS

2015 Estimated Households 7,555 92,034 344,730

2020 Projected Households 8,042 98,768 369,196

2010 Census Households 6,882 82,244 308,978

Projected Annual Growth 2015 to 2020 487 1.3% 6,734 1.5% 24,466 1.4%Historical Annual Growth 2000 to 2015 544 0.5% 12,497 1.0% 51,076 1.1%AVERAGE HOUSEHOLD INCOME

Estimated Average Household Income (2015) $56,753 $63,270 $70,426

Projected Average Household Income (2020) $65,334 $73,077 $82,116

Census Average Household Income (2010) $48,804 $57,151 $62,295

Projected Annual Change (2015-2020) $8,581 3.0% $9,807 3.1% $11,690 3.3%Historical Annual Change (2000-2015) $9,803 1.3% $9,191 1.1% $13,439 1.5%MEDIAN HOUSEHOLD INCOME

Estimated Median Household Income (2015) $47,780 $52,869 $58,220

Projected Median Household Income (2020) $52,541 $57,953 $64,379

Census Median Household Income (2010) $37,583 $46,621 $51,664

Projected Annual Change (2015-2020) $4,761 2.0% $5,084 1.9% $6,159 2.1%Historical Annual Change (2000-2015) $8,031 1.3% $8,638 1.2% $11,102 1.5%

825 N. Belt Line Rd

Irving, Texas

OFFERING MEMORANDUM 16

RACE AND ETHNICITY 1 mile 5 miles 10 milesTotal Population (2015) 21,130 243,614 938,918

White (2015) 11,742 55.6% 130,652 53.6% 531,315 56.6%Black or African American (2015) 2,606 12.3% 34,405 14.1% 126,549 13.5%American Indian or Alaska Native (2015) 149 0.7% 2,114 0.9% 7,097 0.8%

Asian (2015) 981 4.6% 23,768 9.8% 76,978 8.2%

Hawaiian or Pacific Islander (2015) 11 0.1% 419 0.2% 1,956 0.2%Other Race (2015) 4,923 23.3% 43,626 17.9% 163,836 17.4%Two or More Races (2015) 718 3.4% 8,630 3.5% 31,188 3.3%EDUCATIONAL ATTAINMENT (2014)Adult Population Age 25 Years or Over 13,035 153,723 588,902

Elementary (Grade Level 0 to 8) 1,607 12.3% 17,677 11.5% 73,442 12.5%Some High School (Grade Level 9 to 11) 1,731 13.3% 15,855 10.3% 62,432 10.6%High School Graduate 3,753 28.8% 37,945 24.7% 137,930 23.4%Some College 2,679 20.6% 31,663 20.6% 116,100 19.7%Associate Degree Only 1,004 7.7% 10,171 6.6% 35,165 6.0%Bachelor Degree Only 1,645 12.6% 27,046 17.6% 107,507 18.3%Graduate Degree 617 4.7% 13,366 8.7% 56,326 9.6%Any College (Some College or Higher) 5,945 45.6% 82,246 53.5% 315,099 53.5%College Degree + (Bachelor Degree or Higher) 2,262 17.4% 40,412 26.3% 163,834 27.8%HOUSING Total Housing Units (2015) 7,806 95,648 356,594

Total Housing Units (2010) 7,599 91,363 340,261

Historical Annual Growth (2010-2015) 207 0.5% 4,285 0.8% 16,333 0.8%Housing Units Occupied (2015) 7,555 96.8% 92,034 96.2% 344,730 96.7%Housing Units Owner-Occupied 2,988 39.5% 34,015 37.0% 151,288 43.9%Housing Units Renter-Occupied 4,567 60.5% 58,019 63.0% 193,442 56.1%Housing Units Vacant (2015) 251 3.3% 3,614 3.9% 11,864 3.4%DAYTIME DEMOGRAPHICS (2014)Total Businesses 677 9,515 42,218

Total Employees 5,846 156,726 614,869

OFFERING MEMORANDUM 17

EXCLUSIVELY LISTED BY:

XAVIER SANTANA | PRESIDENT(925) 226-2455

xavier@ngcip.comLicense # 01317296

CHRIS SANTANA | VICE PRESIDENT(925) 203-1106

chris.santana@northgatecre.comLicense # 01868378

NICOLE KEY | VICE PRESIDENT (408) 498-4561

nicole.key@ngcip.comLicense # 01973380

© 2016 Northgate Commercial Real Estate. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions,

change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax an

legal advisors should conduct your own investigation of the property and transaction.

825 N. BELT LINE ROADIrving, Texas

4643 Quail Lakes Dr. Suite 101 |Stockton, CA| 95207T (209) 477-4400 |F (209) 476-7344

www.NorthgateCRE.com | License # 01910787

NAI Robert Lynn4851 LBJ Freeway 10th FloorDallas, TX 75244 USALic. # 405391nairlretail.com

CO-LISTED BY:

OFFERING MEMORANDUM 18

INFORMATION ABOUT BROKERAGE SERVICES

Before working with a real estate broker, you should know the duties of abroker depend on whom the broker represents. If you are a prospectiveseller or landlord (owner) or a prospective buyer or tenant (buyer), youshould know that the broker who lists the property for sale or lease is theowner’s agent. A broker who acts as a subagent represents the owner incooperation with the listing broker. A broker who acts as a buyer’s agentrepresents the buyer. A broker may act as an intermediary between theparties if the parties consent in writing. A broker can assist you in locatinga property, preparing a contract or lease, or obtaining financing withoutrepresenting 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 subagencyfrom the listing broker. A subagent may work in a different real estateoffice. A listing broker or subagent can assist the buyer but does notrepresent the buyer and must place the interests of the owner first. Thebuyer should not tell the owner’s agent anything the buyer would notwant the owner to know because an owner’s agent must disclose to theowner 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 representationagreement. A buyer’s agent can assist the owner but does not representthe owner and must place the interests of the buyer first. The ownershould not tell a buyer’s agent anything the owner would not want thebuyer to know because a buyer’s agent must disclose to the buyer anymaterial 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 obtainthe written consent of each party to the transaction to act as an

Texas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers, and landlords.

intermediary. The written consent must state who will pay the brokerand, in conspicuous bold or underlined print, set forth the broker’sobligations as an intermediary. The broker is required to treat each partyhonestly 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 that theasking price unless authorized in writing to do so by the owner;

(3) may not disclose that the buyer will pay a price greater than theprice submitted in a written offer unless authorized in writing to do so bythe buyer; and

(4) may not disclose any confidential information or any informationthat a party specifically instructs the broker in writing not to discloseunless authorized in writing to disclose the information or required to doso by The Texas Real Estate License Act or a court order or if theinformation materially 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 underthat Act and associated with the broker to communicate with and carryout 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. Theagreement should state how and by whom the broker will be paid. Youhave the right to choose the type of representation, if any, you wish toreceive. Your payment of a fee to a broker does not necessarily establishthat the broker represents you. If you have any questions regarding theduties and responsibilities of the broker, you should resolve thosequestions before proceeding.

OFFERING MEMORANDUM 19