Nicole Key

OFFERING MEMORANDUMOFFERING MEMORANDUM

Single-Tenant Net Leased Investment805 West Avenue North · San Angelo, TX

CONFIDENTIALITY & DISCLOSURE AGREEMENT

Sacramento, California Reno, Nevada

805 W. Avenue N.

San Angelo, Texas

OFFERING MEMORANDUM 2

TABLE OF CONTENTS805 W. Avenue N.

San Angelo, Texas

EXECUTIVE & INVESTMENTSUMMARY

4

PROPERTY OVERVIEW 5

PROPERTY SUMMARY 6

TENANT PROFILE 8

MARKET INFORMATION

MARKET PROFILE 10

AERIAL | MARKET 11

AERIAL | REGIONAL 12

DEMOGRAPHICS 13 -15

OFFERING MEMORANDUM 3

EXECUTIVE & INVESTMENT SUMMARY

ASSET SUMMARY

MARKET VALUE $1,174,000

PRICE / SQUARE FOOT $196

CAP RATE 6.75%

NOI $79,200

OCCUPANCY 100%

GLA ± 6,000 Sq Ft

LOT SIZE ± 1.0 Acre

ASSET HIGHLIGHTS

• Corporate guarantee by Kelly Moore Paint Company

• New long term net lease

• National tenant with nearly 150 locations

• Occupied by Kelly-Moore Paint Co. since 2004

• Site is located 1/3 mile from the heavily trafficked Bryant Blvd S

• Area co-tenants include O’Reilly Auto Parts, 7 Eleven, KFC, TitleMax, Subway, and more

805 W. Avenue N.

San Angelo, Texas

LEASE SUMMARY

COMMENCEMENT Close of Escrow

TERM 10 Years

OPTIONS 4 Options, 5 Years each

RENTAL INCREASES 8% every 5 years (Base and Option Terms)

LANDLORD RESPONSIBILITIES

Structural, Foundation, Roof, Parking Lot, andHVAC replacement

TENANT RESPONSIBILITIES

Taxes, Insurance, and all property repairs/ maintenance not covered by Landlord

OFFERING MEMORANDUM 4

PROPERTY OVERVIEW805 W. Avenue N.

San Angelo, Texas

OFFERING MEMORANDUM 5

PROPERTY SUMMARY

LOCATION: 805 WEST AVENUE NORTHSan Angelo, Texas 76903

APN: 38-00218-0034-000-00

GLA: ± 6,000 Sq Ft

LOT SIZE: ± 1.0 Acre

YEAR BUILT: ± 1947

ZONING: Light Manufacturing (ML)

Reno, Nevada

805 W. Avenue N.

San Angelo, Texas

West Avenue North

OFFERING MEMORANDUM 6

TENANT PROFILE

OFFERING MEMORANDUM

TENANT PROFILE

OFFERING MEMORANDUM 7

TENANT PROFILE 805 W. Avenue N.

San Angelo, Texas

OFFERING MEMORANDUM 8

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.

MARKET INFORMATION

OFFERING MEMORANDUM 9

MARKET PROFILE805 W. Avenue N.

San Angelo, Texas

San Angelo, Texas is a city in and the county seat of Tom Green County, Texas, United States. Its location is in the Concho Valley, a region of West Texas between the Permian Basin to the northwest, Chihuahuan Desert to the southwest, Osage Plains to the northeast, and Central Texas to the southeast.

• According to a 2014 Census estimate, San Angelo has a total population of 98,975. The city is the principal city and center of the San Angelo metropolitan area, which has a population of 118,182.

• San Angelo has consistently been ranked by many publications and rankings as one of the best small cities for business and employment

• San Angelo has a very diverse economy for a city of its size. Although most oil fields lay to the west, many oil-field service companies based in the city employ a large number of local residents

• The telecommunication industry is a strong employer in San Angelo. Sitel has a call center in San Angelo.In addition, Verizon, Performant Recovery Inc. (Formerly DCS), a debt recovery corporation, and Blue Cross all employ over 1,000 each individuals locally. San Angelo serves as the regional medical center for West-central Texas. Shannon Medical Center and Community Medical Center employ over 3,000 in San Angelo, and provide services to a large region of West-central Texas

OFFERING MEMORANDUM 10

2

MARKET AERIAL

805 W. Avenue N.

San Angelo, Texas

West Avenue North Austin Street

Kenwood Drive

South Park StreetOFFERING MEMORANDUM 11

2

REGIONAL AERIAL

805 W. Avenue N.

San Angelo, Texas

OFFERING MEMORANDUM 12

DEMOGRAPHICSSan Angelo, Texas

10 mi radius

5 mi radius

1 mi radius

OFFERING MEMORANDUM 13

DEMOGRAPHICS

POPULATION 1 mile 5 miles 10 miles2016 Estimated Population 8,813 98,891 106,7952021 Projected Population 9,229 103,021 111,2292010 Census Population 8,195 92,670 100,115Projected Annual Growth 2016 to 2021 416 0.9% 4,130 0.8% 4,434 0.8%Historical Annual Growth 2000 to 2016 619 1.3% 6,220 1.1% 6,680 1.1%HOUSEHOLDS2016 Estimated Households 3,352 38,770 41,7472021 Projected Households 3,594 41,235 44,3902010 Census Households 3,068 35,854 38,652Projected Annual Growth 2016 to 2021 242 1.4% 2,465 1.3% 2,643 1.3%Historical Annual Growth 2000 to 2016 215 0.4% 5,092 0.9% 5,476 0.9%AVERAGE HOUSEHOLD INCOME Estimated Average Household Income (2016) $77,664 $62,709 $64,657Projected Average Household Income (2021) $88,452 $72,319 $74,560Census Average Household Income (2010) $53,657 $52,276 $53,643Projected Annual Change (2016-2021) $10,789 2.8% $9,609 3.1% $9,903 3.1%Historical Annual Change (2000-2016) $22,821 2.6% $19,428 2.8% $20,491 2.9%MEDIAN HOUSEHOLD INCOME Estimated Median Household Income (2016) $43,812 $48,930 $50,422Projected Median Household Income (2021) $48,237 $53,551 $55,154Census Median Household Income (2010) $42,016 $42,836 $44,211Projected Annual Change (2016-2021) $4,425 2.0% $4,621 1.9% $4,732 1.9%Historical Annual Change (2000-2016) $11,762 2.3% $14,813 2.7% $15,643 2.8%

805 W. Avenue N.

San Angelo, Texas

OFFERING MEMORANDUM 14

RACE AND ETHNICITY. 1 mile 5 miles 10 milesTotal Population (2016) 8,813 98,891 106,795White (2016) 6,958 78.9% 77,672 78.5% 84,592 79.2%Black or African American (2016) 444 5.0% 5,278 5.3% 5,372 5.0%American Indian or Alaska Native (2016) 79 0.9% 774 0.8% 843 0.8%

Asian (2016) 76 0.9% 1,468 1.5% 1,517 1.4%

Hawaiian or Pacific Islander (2016) 9 0.1% 90 0.1% 96 0.1%Other Race (2016) 1,012 11.5% 10,488 10.6% 11,077 10.4%Two or More Races (2016) 235 2.7% 3,122 3.2% 3,298 3.1%EDUCATIONAL ATTAINMENT (2016)Adult Population Age 25 Years or Over 5,202 62,650 68,142Elementary (Grade Level 0 to 8) 581 11.2% 5,036 8.0% 5,316 7.8%Some High School (Grade Level 9 to 11) 591 11.4% 5,769 9.2% 6,257 9.2%High School Graduate 1,694 32.6% 19,689 31.4% 21,406 31.4%Some College 832 16.0% 13,809 22.0% 15,110 22.2%Associate Degree Only 289 5.6% 4,640 7.4% 5,041 7.4%Bachelor Degree Only 759 14.6% 9,195 14.7% 10,174 14.9%Graduate Degree 456 8.8% 4,512 7.2% 4,838 7.1%Any College (Some College or Higher) 2,337 44.9% 32,157 51.3% 35,163 51.6%College Degree + (Bachelor Degree or Higher) 1,215 23.4% 13,708 21.9% 15,012 22.0%HOUSING Total Housing Units (2016) 3,605 40,850 44,073Total Housing Units (2010) 3,539 39,231 42,356Historical Annual Growth (2010-2016) 66 0.3% 1,619 0.7% 1,717 0.7%Housing Units Occupied (2016) 3,352 93.0% 38,770 94.9% 41,747 94.7%Housing Units Owner-Occupied 1,930 57.6% 23,821 61.4% 26,306 63.0%Housing Units Renter-Occupied 1,422 42.4% 14,948 38.6% 15,441 37.0%Housing Units Vacant (2016) 253 7.5% 2,080 5.4% 2,326 5.6%DAYTIME DEMOGRAPHICS (2016)Total Businesses 646 4,386 4,630Total Employees 8,901 52,946 54,814

OFFERING MEMORANDUM 15

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 withdrawalwithout 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.

805 W. AVENUE N.San Angelo, Texas

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

www.NorthgateCRE.com | License # 01910787

OFFERING MEMORANDUM 16

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

CO-LISTED BY:

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.

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