STNL INVESTMENT OPPORTUNITY › assets › at-t-uvalde-offering-memorandum.pdfsale a brand-new, free-standing, net leased AT&T store in Uvalde, TX (the “Property”). AT&T is situated

AT&TSTNL INVESTMENT OPPORTUNITY

CONFIDENTIAL OFFERING MEMORANDUM

UVALDE, TX

CONFIDENTIAL OFFERING MEMORANDUM — AT&T — UVALDE

AT&T STNL INVESTMENT OPPORTUNITY CONFIDENTAL OFFERING MEMORANDUM

3190 EAST MAIN STREET UVALDE, TEXAS 78801

presented by

KEVIN CATALANI VICE PRESIDENT INVESTMENT SALES 210.841.3237 [email protected]

REATA REAL ESTATE INVESTMENT SALES 1100 NE Loop 410, Suite 400 San Antonio, TX 78209

TEL 210.930.4111 FAX 210.930.1114

REATAREALESTATE.COM

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Information contained was obtained from sources believed reliable, However, REATA Real Estate Services, LP, makes no guarantees, warranties or representations as to the completeness or accuracy thereof. The presentation of this project is submitted subject to the errors, omissions and change of price or conditions prior to lease or withdrawal. ©REATA Real Estate Services, LP


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SSECTION I .. ... ... ... ... ... ... ... ...EXECUTIVE SUMMARY

INVESTMENT HIGHLIGHTS

LEASE ABSTRACT

TENANT PROFILE

SECTION II . ... ... ... ... ... ... ... ...PROPERTY OVERVIEW MAP

AERIALS

SITE PLAN

PHOTOS

SECTION III ... ... ... ... ... ... ... ...TRADE AREA OVERVIEW SAN ANTONIO MARKET OVERVIEW

UVALDE OVERVIEW

DEMOGRAPHICS

SECTION IV ... ... ... ... ... ... ... ...AGENCY DISCLOSURE

REPRESENTATIVE PHOTOS Subject Property Under Construction


REATA Investment Sales has been exclusively retained to offer for

sale a brand-new, free-standing, net leased AT&T store in Uvalde, TX

(the “Property”).

AT&T is situated on an outparcel in front of the Walmart Supercenter

along US Highway 90, the main thoroughfare in Uvalde. This store

is a relocation of an existing AT&T store which needed to expand

its footprint. Construction was completed in early 2016 and AT&T

commenced operations on March 28, 2016.

AT&T is operating on a 10-year, corporate guaranteed lease offering

secure, stable cash flow.

INVESTMENT HIGHLIGHTS

• Brand-new, high quality construction

• 10-year, corporately guaranteed lease

• 10% rent escalations every 5 years

• Two, five-year renewal options with 10% rent bumps

• Walmart outparcel location with US Highway 90 frontage

• Relocation of an existing, strong performing store

• Net lease structure creates minimal landlord responsibility

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Tenant New Cingular Wireless PCS, LLC

Tenant Trade Name AT&T Mobility

Original Lease Term 10 Years

Lease Commencement March 28, 2016

Lease Expiration March 31, 2026

Rent Increases 10% Every 5 Years

Renewal Options Two, 5-Year Options with 10% Rent Increases

Lease Type Corporate Net Lease

Administrative Fee 5% of CAM Charges

CAM Cap 5% Annual Cap on “Controllable Expenses”

Roof & Structure Landlord Responsibility

Lease Years Effective Dates Annual Base Rent Base Rent PSF

1 — 5 March 28, 2016 — March 31, 2021 $152,212.50 $33.75

6 — 10 April 1, 2021 — March 31, 2026 $167,456.30 $37.13

Extension Terms

11 — 15 April 1, 2026 — March 31, 2031 $184,188.40 $40.84

16 — 20 April 1, 2031 — March 31, 2036 $202,634.30 $44.93

RENT SUMMARY

LEASE SUMMARY

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TENANT AT&T

LOCATION 3190 East Main Street Uvalde, Texas 78801

BUILDING SIZE 4,510 SF

LAND AREA 0.709 acres

YEAR BUILT 2015—2016

PRICING

Offering Price $2,537,000

Current Rent $152,212.50

Cap Rate 6.00%


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AT&T MOBILITY, formerly known as Cingular Wireless, is a wholly owned subsidiary of AT&T that provides wireless services to 126.4 million subscribers in the United States, including Puerto Rico and the U.S. Virgin Islands. AT&T Mobility is the second largest wireless telecommunications provider in the United States and Puerto Rico behind Verizon Wireless. AT&T Mobility is headquartered in the Lenox Park area of Brookhaven, Georgia, just outside Atlanta.

Originally known as Cingular Wireless from 2000 to 2007, a joint venture between SBC Communications and BellSouth, the company acquired the old AT&T Wireless in 2004; SBC later acquired the original AT&T. Cingular became wholly owned by AT&T in December 2006 as a result of AT&T’s acquisition of BellSouth.

In January 2007, Cingular confirmed it would re-brand itself under the AT&T name. Although the legal corporate name change occurred immediately, for both regulatory and brand-awareness reasons both brands were used in the company’s signage and advertising during a transition period. The transition concluded in late June, just prior to the rollout of the Apple iPhone.

On March 13, 2014, the Federal Communications Commission approved the acquisition between AT&T and Leap Wireless.

att.com


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AT&T — UVALDE


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Representative Photo (Subject Property Under Construction)

AT&T — UVALDE


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Representative Photo (Subject Property Under Construction)

AT&T — UVALDE


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SITE PLAN


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SAN ANTONIO MARKET OVERVIEW

San Antonio is the nation’s 7th largest city and the 24th largest metropolitan service area (MSA) in the United States. The San Anto-nio-New Braunsfels MSA (referred to as Great-er San Antonio) encompasses eight counties and is situated in South-Central Texas along the I-35 corridor with a population of nearly 2.3 million people; 200 miles west of Houston, 280 miles southwest of Dallas and 84 miles south of Austin

The MSA is centrally located between the East and West Coasts, with close proximity to Mex-ico. Due to its central location and positioning along Interstate 35, more than half of the to-tal goods flowing between the U.S. and Mex-ico travel through San Antonio before reach-ing their final destination. San Antonio is also home to a number of national landmarks and famous attractions, making it Texas’ most vis-ited city with about 20 million visitors annually.

San Antonio benefits greatly from the city’s close proximity to Mexico and the cost advan-tages of living in this unique city. The economy of San Antonio is a healthy mix of financial ser-vices, government services, manufacturing, education and health care, biosciences, com-munications, oil & gas and tourism industries. San Antonio is home to five Fortune 500 com-panies including Valero Energy, Tesoro, USAA, NuStar Energy and Clear Channel Communica-tions. In addition, other major companies call San Antonio home for their corporate head-quarters, including H-E-B and Rackspace.

According to the Council for Community and Economic Research, the cost of living is near-ly 12 percent below the U.S. average, allowing residents and companies alike to enjoy afford-able living in a cultural and business-savvy environment. Home prices in San Antonio are more than 35 percent below the U.S. median

and are less than half the cost of comparable housing in some cities in California and the East Coast.

In recent years, San Antonio has been among the top of a number of economic indicator rankings including Milken Institute’s list of top performing cities (#1 in 2011), Brookings Institution’s top-economic performer list and Forbes list of America’s Fastest Recovering Cities (#2 in 2009). The Eagle Ford Shale play that is currently taking place in South Tex-as has made significant contributions to the city’s recent success. The Eagle Ford Shale (EFS) is quite possibly the largest single eco-nomic development in the history of the state of Texas and ranks as the largest oil & gas development in the world based on capital invested. The EFS is a gas and oil producing shale rock formation in south Texas that runs from the US-Mexico border north of Lare-


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do in a narrow band extending northeast for several hundred miles to just north of Hous-ton. The EFS takes its name from the town of Eagle Ford, Texas where the shale outcrops at the surface in clay form. Approximately $30 billion was spent developing the play in 2013 and had more than a $60 billion dollar impact on the South Texas economy in 2012; over 116,000 Eagle Ford jobs were supported

in the 20 county area impacted by the play. Since the beginning of 2010 over 7% of the state’s employment gains are attributed to the EFS. It is currently the most active shale play in the world with over 200 rigs running. From record drilling levels to wells producing over 4,000 barrels per day of oil, the play is redefining South Texas as an oil industry hot-bed and bringing new wealth to the region.

CORPORATE HEADQUARTERS IN SAN ANTONIO

COMPANY BUSINESS EMPLOYED IN SAN ANTONIO

H-E-B Super Market Chain 20,000USAA Financial Services and Insurance 17,000Bill Miller Bar-B-Q Fast Food Chain 4,190Cullen / Frost Bankers Financial Services 3,982Valero Energy Oil Refinery & Gasoline Mktg. 3,777Rackspace IT Managed Hosting Solutions 3,300Southwest Research Institute Applied Research 3,046Toyota Motor Manufacturing Auto Manufacturing 2,900Clear Channel Communications, Inc. TV & Radio Stations, Outdoor Ads 2,800Kinetic Concepts, Inc. Medical Supplies 2,000Harland Clarke Check Printing 1,500Tesoro Oil Refiner & Petroleum Products 800NuStar Energy Energy 550

Source: The San Antonio Business Journal and by contact with company representatives. Updated August 2013.

MAJOR REGIONAL EMPLOYERS IN SAN ANTONIO

COMPANY BUSINESS EMPLOYED IN SAN ANTONIO

Lackland Air Force Base Military 37,097Fort Sam Houston Military 32,000H-E-B Super Market Chain 20,000USAA Financial Services and Insurance 17,000Northside Independent School District School District 12,751City of San Antonio City Government 11,731Randolph Air Force Base Military 11,068North East Independent School District School District 10,522Methodist Healthcare System Health Care Services 8,000San Antonio Independent School District School District 7,374

Source: The 2013 Book of Lists, The San Antonio Business Journal

FORTUNE 500 COMPANIES HEADQUARTERED IN SAN ANTONIO

COMPANY RANK

Valero Energy 9 Tesoro 95 USAA 139 NuStar Energy 389 Clear Channel Communications, Inc. 407

Source: Fortune Magazine


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UVALDE OVERVIEW

Located at the crossroads of US Highway 90 and US Highway 83, Uvalde is the county seat of Uvalde County, just 85 miles west (via US Highway 90) of San Antonio, Texas.

Uvalde was founded by Reading Wood Black in 1853 as the town of Encina. In 1856, when the county was organized, the town was renamed Uvalde after Spanish governor Juan de Ugal-de (Cádiz, Andalucía, 1729-1816) and was cho-sen as county seat. It is usually considered the southern limit of the Texas Hill Country or the most northerly part of South Texas. Histori-cally, Uvalde is known as the Honey Capital of the World for production of huajillo (also spelled guajillo) honey, a mild, light-colored honey, dating back to the 1870s.

Uvalde was the home of John Nance “Cactus Jack” Garner, former Speaker of the House and Vice President of the United States. Os-car-winning actor Matthew McConaughey, actress Dale Evans, and former Governor of

Texas Dolph Briscoe (after whom the post of-fice is named), were born in Uvalde. The city is also home to the Grammy Award-winning Tejano/Norteño group Los Palominos.

CULTURAL ATTRACTIONS

The John Nance Garner Museum in Uvalde, which was home to John Nance Garner for 30 years, chronicles his life. Garner served as Speaker of the United States House of Repre-sentatives from 1931–1933 and as Franklin D. Roosevelt’s Vice President from 1933 to 1941.

ALSO LOCATED IN UVALDE

• The Aviation Museum at Garner Field, which has displays of World War II aircraft;

• The Briscoe Art and Antique Collection, which displays the collection of former Texas governor Dolph Briscoe; and

• The Janey Slaughter Briscoe Grand Opera House, which hosts community theater and concerts.


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Demographic Source: Applied Geographic Solutions 11/2015, TIGER Geography page 1 of 3©2016, Sites USA, Chandler, Arizona, 480-491-1112

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FULL PROFILE2000-2010 Census, 2015 Estimates with 2020 ProjectionsCalculated using Weighted Block Centroid from Block Groups

Lat/Lon: 29.2350/-99.7511RF1

AT&T Uvalde3 mi radius 5 mi radius 7 mi radius 10 mi radius

3190 E Main St, Uvalde, TX 78801

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2015 Estimated Population 10,594 18,629 20,656 22,8732020 Projected Population 10,865 19,267 21,390 23,7162010 Census Population 10,102 17,972 19,936 22,0692000 Census Population 9,824 18,188 19,970 21,937Projected Annual Growth 2015 to 2020 0.5% 0.7% 0.7% 0.7%Historical Annual Growth 2000 to 2015 0.5% 0.2% 0.2% 0.3%

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S 2015 Estimated Households 3,722 6,309 6,952 7,6882020 Projected Households 3,887 6,640 7,327 8,1122010 Census Households 3,501 6,023 6,645 7,3522000 Census Households 3,314 5,867 6,416 7,037Projected Annual Growth 2015 to 2020 0.9% 1.1% 1.1% 1.1%Historical Annual Growth 2000 to 2015 0.8% 0.5% 0.6% 0.6%

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2015 Est. Population Under 10 Years 15.3% 15.8% 15.7% 15.7%2015 Est. Population 10 to 19 Years 15.9% 15.9% 16.1% 16.1%2015 Est. Population 20 to 29 Years 16.0% 15.5% 15.3% 15.1%2015 Est. Population 30 to 44 Years 17.9% 17.4% 17.4% 17.5%2015 Est. Population 45 to 59 Years 16.1% 16.0% 16.1% 16.1%2015 Est. Population 60 to 74 Years 11.8% 12.4% 12.5% 12.6%2015 Est. Population 75 Years or Over 6.9% 7.0% 6.9% 6.8%2015 Est. Median Age 31.3 31.3 31.5 31.7

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2015 Est. Male Population 48.9% 48.9% 49.0% 49.2%2015 Est. Female Population 51.1% 51.1% 51.0% 50.8%

2015 Est. Never Married 26.8% 27.2% 27.9% 28.2%2015 Est. Now Married 50.0% 48.0% 47.7% 47.5%2015 Est. Separated or Divorced 16.6% 18.0% 17.5% 17.1%2015 Est. Widowed 6.6% 6.8% 6.9% 7.1%

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2015 Est. HH Income $200,000 or More 2.8% 2.5% 2.5% 2.4%2015 Est. HH Income $150,000 to $199,999 1.4% 1.4% 1.3% 1.3%2015 Est. HH Income $100,000 to $149,999 9.5% 7.7% 8.2% 8.5%2015 Est. HH Income $75,000 to $99,999 10.1% 9.4% 10.0% 10.5%2015 Est. HH Income $50,000 to $74,999 19.4% 16.2% 15.9% 15.6%2015 Est. HH Income $35,000 to $49,999 12.2% 11.9% 11.4% 11.6%2015 Est. HH Income $25,000 to $34,999 13.6% 14.9% 14.8% 14.6%2015 Est. HH Income $15,000 to $24,999 12.3% 15.8% 15.7% 15.6%2015 Est. HH Income Under $15,000 18.7% 20.3% 20.0% 19.9%2015 Est. Average Household Income $55,357 $50,644 $51,109 $51,1912015 Est. Median Household Income $44,395 $40,038 $40,283 $40,0572015 Est. Per Capita Income $19,646 $17,298 $17,345 $17,337

2015 Est. Total Businesses 652 895 924 9532015 Est. Total Employees 5,809 8,317 8,663 8,927

DEMOGRAPHICS


AGENCY DISCLOSUREAGENCY DISCLOSURE

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 rep-resents):• Put the interests of the client above all others, including

the broker’s own interests;• Inform the client of any material informaton 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 listng 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 agree-ment. A buyer’s agent must perform the broker’s min-imum 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 trans-action. 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 partes to the transaction impartially and

fairly;• May, with the parties’ written consent, appoint a differ-

ent 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 writng to do so by the party, disclose:

› that the owner will accept a price less than the written asking price;

› that the buyer/tenant will pay a price greater than the price submitted in a written offer; and

› any confidential information or any other information that a party specifically instructs the broker in writ-ing 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 agree-ment 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 no-tice is being provided for information purposes. It does not create an obligation for you to use the broker’s ser-vices. Please acknowledge receipt of this notice below and retain a copy for your records.

Licensed Broker/Broker Firm Name or Primary Assumed Business Name

License Number Email PhoneREATA Real Estate Services, LP 9002891 [email protected] 210.930.4111

Designated Broker of Firm License Number Email PhoneThomas C. Tyng, Jr. 0406718 [email protected] 210.930.4111

Buyer/Tenant/Seller/Landlord Initials Date

Sales Agent License Number Email Phone Kevin Catalani 590070 [email protected] 210.930.4111

Sales Agent License Number Email Phone

Sales Agent License Number Email Phone

REGULATED BY THE TEXAS REAL ESTATE COMMISSION. INFORMATION AVAILABLE AT WWW.TREC.TEXAS.GOV IABS 1-0 02/16/16

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OUR MISSION is to provide excellent real estate services to both external and internal customers while building a lasting

Company committed to profitability and opportunity.

We strive for the highest standards of service, integrity and accountability to our EMPLOYEES, CLIENTS and PARTNERS.

Documents

STNL INVESTMENT OPPORTUNITY › assets › at-t-uvalde-offering-memorandum.pdfsale a brand-new, free-standing, net leased AT&T store in Uvalde, TX (the “Property”). AT&T is situated