FAMILY DOLLARHOUSTON, TX

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BRAND NEW 15-YEAR ABSOLUTE NET FAMILY DOLLAR

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FAMILY DOLLAR

5.75%CAP

$2,037,200PRICE

9630 MESA DRIVE, HOUSTON, TX, 77078

New 15-year Absolute NNN lease with six (6), five (5) year options

Brand new construction, opened February 8, 2018

Site is inside Beltway 8 (Sam Houston Pkwy) which defines

“Houston Proper”

Over 148,000 people in a 5-mile radius

Traffic counts exceed 39,000 VPD

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.

LEASABLE SF8,320 SF

LEASE EXPIRATION6/30/2033

LEASE TYPEAbsolute NNN

LAND AREA0.94 AC

YEAR BUILT2018

PARKING33 Spaces

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Overview

THE OFFERING is a single-tenant Family Dollar in Houston with a 15-year absolute NNN lease. The store opening/rent commencement was February 8, 2018. The lease has a five (5) percent rental increase in year 10 and then five (5) percent bumps for each of the six (6) five-year options. There are approximately 170 Family Dollar stores in greater Houston. Houston is a top-performing market for the chain. This Family Dollar benefits from easy ingress/egress onto Mesa, and a handsome, high-impact signage package that also includes a pylon sign. There are 33 dedicated parking spots on the property.

THE SUBJECT PROPERTY is on Mesa Drive, just off the iconic intersection of Mesa and Tidwell Road in the heart of East Houston, inside Beltway 8. Mesa is a 6-lane thoroughfare with average daily traffic counts exceeding 17,000 VPD. The Family Dollar is flanked by O’Reilly Auto and Jack in the Box. Other national retailers in immediate proximity include AutoZone, KFC/Taco Bell, Sonic Burgers, Payless, Boost Mobile, Pizza Hut, GameStop and Cricket Wireless. There are also several schools in close proximity including North Forrest High School, Fonwood Elementary and Kipp Preparatory School. There are nearly 50,000 people within a 3-mile radius of the site, and more than 134,000 within a 5-mile radius.

JOE CACCAMOjcaccamo@capitalpacific.comPH: 415.274.7394CA BRE# 01191110

Contact the team

IN CONJUNCTION WITH TX LICENSED BROKER: Steve SielingAzur Commercial Capital, LLC 214.888.8262

FAMILY DOLLAR IS THE SECOND LARGEST DOLLAR STORE IN THE U.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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Investment Highlights

8

8

90

90

BUS 90

BUS 90

HOUSTON CITY

CENTER

21,976 VPD

FONWOOD ELEMENTARY

KIPP PREPARATORY

SCHOOL

H&R BLOCK

CE KING HIGH

SCHOOL

CE KING MIDDLE SCHOOL

MONAHAN ELEMENTARY

CRAVENS EARLY

CHILDHOOD ACADEMY

ROYALWOOD ELEMENTARY

SAN JACINTO COLLEGE

PURPLE SAGE ELEMENTARY

LANCE CORPORAL ANTHONY

JUNIOR HIGH SCHOOL

TICE ELEMENTARY

CUNNINGHAM MIDDLE SCHOOL

TEXACO COUNTRY

CLUB

NORTH FOREST HIGH

SCHOOL

HM CARROLL ELEMENTARY

RHODES SCHOOLBROCK PARK

GOLF COURSE

17,084 VPD

20,809VPD

16,156 VPD

81,695 VPD

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.

55

AerialAerial

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.

HOUSTON CITY

CENTER

HOUSTON CITY

CENTER

Zoomed-In Aerial

8

69

90

10

45

10

610

1010

45

90

69

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.

6

610

8

8

8

HOUSTON

PASADENA

PEARLAND

MISSOURI CITY

Highway Aerial ATASCOCITA

O’Reilly Auto PartsJack in the BoxChase BankH&R BlockGameStopDollar General

WalgreensWalmart SupercenterLowe’sPetSmartRoss Dress for LessBig Lots

MarshallsSears Hometown StoreStarbucksGoodwillBest BuyParty City

BUSINESS SUMMARY

KEY 1-MILE 3-MILES 5-MILES

TOTAL 1-MILE 3-MILES 5-MILES

Businesses 179 879 3,197

Employees 1,556 9,540 43,105

Residential Population 12,161 53,300 148,887

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.

Submarket Overview

RETAILERS IN CLOSE PROXIMITY INCLUDE:

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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 $2,037,200 Price Per Square Foot: $244.86

Capitalization Rate: 5.75%

Total Rentable Area (SF): 8,320

Lot Size (AC): 0.94

STABILIZED INCOME PER SQUARE FOOTScheduled Rent $14.08 $117,139

Effective Gross Income $14.08 $117,139

LESS PER SQUARE FOOTTaxes NNN $0.00

Insurance NNN $0.00

Total Operating Expenses NNN $0.00

EQUALS NET OPERATING INCOME $117,139

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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. PERCENT OF GLA CURRENT RENT

MONTHLY RENT YEARLY RENT MONTHLY

RENT/FT YEAR RENT/FT

Family Dollar 8,320 2/8/2018 06/30/28 $117,139 $9,762 $117,139 $1.17 $14.08

07/01/28 06/30/33 $10,250 $122,996 $1.23 $14.78

Option 1 07/01/33 06/30/38 $10,762 $129,146 $1.29 $15.52

Option 2 07/01/38 06/30/43 $11,300 $135,603 $1.36 $16.30

Option 3 07/01/43 06/30/48 $11,865 $142,383 $1.43 $17.11

Option 4 07/01/48 06/30/53 $12,459 $149,502 $1.50 $17.97

Option 5 07/01/53 06/30/58 $13,081 $156,977 $1.57 $18.87

Option 6 07/01/58 06/30/63 $13,736 $164,826 $1.65 $19.81

TOTALS: 8,320 $117,139 $9,762 $117,139 $1.17 $14.08

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Rent Roll

BASE RENT

DATE RANGE MONTHLY RENT ANNUAL RENT

2/2018-6/30/2028 $9,762 $117,1397/1/2028-6/302033 $10,250 $122,996

OPTION RENTS

DATE RANGE MONTHLY RENT ANNUAL RENT

#1. 7/1/2033 - 6/30/2038 $10,762 $129,146#2. 7/1/2038 - 6/30/2043 $11,300 $135,604#3. 7/1/2043 - 6/30/2048 $11,865 $142,383#4. 7/1/2048 - 6/30/2053 $12,458 $149,503#5. 7/1/2053 - 6/30/2058 $13,082 $156,978#6. 7/1/2058 - 6/30/2063 $13,736 $164,827

RENT

TENANT Family DollarBUILDING SF 8,320 SFLEASE TYPE Absolute NetLANDLORD OBLIGATIONS NoneTERM 15 YearsGRAND OPENING February 8, 2018RENT COMMENCEMENT February 8, 2018EXPIRATION June 30, 2033OPTIONS Six (6), Five (5) year options

PREMISE& TERM

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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LANDLORD OBLIGATIONSNone.

RIGHT OF FIRST REFUSALTenant has the right to purchase the Premises within 10 day’s notification from Landlord. In the event that Tenant does not deliver a ROFR Exercise Notice within the Notice Period, Tenant will be deemed to have waived its ROFR and Landlord will have the right to proceed with the proposed trasaction with the prospective Bona Fide Purchaser.

LEASEPROVISIONS

EXPENSES

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Lease Abstract

SE 3RD STREET

8,320RENTABLE SF

0.94ACRES

33SPACES

This site plan is a rendering that has been created based on sources we believe to be reliable. 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.

FENCE

SIGN

NOT A PART

NOT A PART

TIDWELL ROAD

MES

A D

RIV

E

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Site Plan

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ABOUT FAMILY DOLLAR

LOCATIONS IN 46 STATES AND THE DISTRICT OF COLUMBIA8,100

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.

With over 8,100 stores in 46 states and the District of Columbia, Family Dollar is the nation’s second largest dollar store. The company also operates nine distribution centers that are each over 900,000 SF.

Family Dollar targets shopping for a family earning less than $40,000 a year. Consumables (food, health, beauty aids, and household items) account for about two-thirds of sales. Family Dollar also sells apparel, shoes, and linens.

Family Dollar stores are low-format and are located in low and middle-income rural and urban areas. Most goods and groceries (national brands, Family Dollar private labels, and unbranded items) are sold at a variety of discounted prices, the majority of which are under $10.

For fiscal 2016, net sales were $19 billion and net income was $565 million.

In July 2015, Family Dollar was acquired by Dollar Tree,Inc. The acquisition price for Family Dollar was $9 billion in cash and Dollar Tree stock. The combined Dollar Tree-Family Dollar entity is now the largest discounter in North America with over 13,000 stores in 48 states and Canada with annual sales over $219 billion. Both brands will continue to operate separately.

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Tenant Overview

POPULATION

1-MILE 3-MILES 5-MILES

2010 11,161 49,733 134,218

2017 12,161 53,300 148,887

2022 12,933 56,837 160,505

2017 HH INCOME

1-MILE 3-MILES 5-MILES

Average $41,378 $44,157 $48,998

Median $31,400 $35,316 $37,469

TOP EMPLOYERS

EMPLOYER # OF EMPLOYEES

Walmart 37,000

Memorial Hermann Health System 24,108

H-E-B 23,732

University of Texas MD Anderson Cancer Center 21,086

McDonald’s Corp 20,918

HOUSTON

THE POPULATION COUNT CONTAINS OVER 148,000 PEOPLE

WITHIN A 5-MILE RADIUS

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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Demographics

HOUSTON, TEXAS

HOUSTON is the fourth-largest city in the United States and the largest city within the state of Texas. The city has a population of about 2.3 million within an area of 656 square miles. Houston is the economic center of Greater Houston, the fifth-largest metropolitan area in the U.S. with a population over 6.7 million. The city has a population from various ethnic and religious backgrounds and a large and growing international community. It is home to many cultural institutions and exhibits—attracting more than 7 million visitors a year to the Houston Museum District. Houston has an active visual and performing arts scene in the Theater District and is one of few U.S. cities that offer year-round resident companies in all major performing arts.Because of these strengths, Houston is designated as a global city by the Globalization and World Cities Study Group and Network and global management consulting firm A.T. Kearney.

HOUSTON’S ECONOMY has a broad industrial base in the energy, manufacturing, aeronautics, transportation, and health care sectors and is a leading center for building

oil field equipment; only New York City is home to more Fortune 500 headquarters in the city limits.

HOUSTON ECONOMY

2.3 MILLION

HOUSTON 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.

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Location Overview

We’d love to hearfrom you.

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

JOE CACCAMOJOHN ANDREINI

ZANDY SMITH

DAVE LUCAS

RICK SANNER AARON SUSMAN

CHRIS KOSTANECKIZEB RIPPLE CHRIS PETERS

JACK NAVARRA

JOE CACCAMOjcaccamo@capitalpacific.comPH: 415.274.7394CA BRE# 01191110

IN CONJUNCTION WITH TX LICENSED BROKER: Steve SielingAzur Commercial Capital, LLC 214.888.8262

Copyright © 2017 Capital Pacific Partners

SFO. PDX. SEA. CAPITALPACIFIC.COM

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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.

AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer's agent must perform the broker’s minimum 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 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.

LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker’s services. Please acknowledge receipt of this notice below and retain a copy for your records.

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