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3 0 2 5 A l l i s o n B o n n e t t M e m o r i a l D r | H u e y t o w n , A L 3 5 2 0 3

O F F E R I N G M E M O R A N D U M

7-Eleven3 0 1 S h o r t S t | S m i t h v i l l e , T X 7 8 9 5 7

O F F E R I N G M E M O R A N D U M

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E XC LU S I V E LY L I S T E D BY

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MICHAEL MORENOSenior Associate

Michael .Moreno@matthews.comDIR (949) 432-4511MOB (818) 522-4497LIC # 01982943 (CA)

RAHUL CHHAJEDSingle Tenant Lease

Rahul .Chhajed@matthews.comDIR (949) 432-4513MOB (818) 434-1106LIC # 01986299 (CA)

KYLE MATTHEWSBROKER OF RECORDLic # 678067

ARON CLINESVP & Sr. Director

Aron.Cl ine@matthews.comDIR (949) 432-4509MOB (818) 632-0233LIC # 01904371 (CA)

C O N T E N T S

INVESTMENT OVERVIEW

FINANCIAL ANALYSIS

8 TENANT OVERVIEW

1 0 PROPERTY OVERVIEW

1 4 AREA OVERVIEW

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6

4

KYLE MATTHEWS

Lic # 678067

I N V E S T M E N T O V E R V I E W

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M A T T H E W S R E T A I L A D V I S O R S | 5

I n v e s t m e n t H i g h l i g h t s

Property • 7-Eleven has been at this location for over 40 Years - showing their long-term

commitment to this location • Tenant recently re-upped for 7.5 years in July 2017, indicating their high confidence

in this particular location • Landlord is only responsible for structural soundness, ideal for an investor looking

for an investment with almost zero responsibilities • Tenant’s current rental rate is much lower than what an average convenience store

tenant pays at a location • Property comes equipped with 2 double-sided fueling pumps

• Investor has the ability to depreciate the property over an accelerated 15-year schedule (*to be verified with CPA*)

Location • Located in an Income Tax-Free State • Smithville is part of the Greater Austin metropolitan area - Top 50 MSA

• Smithville is a rapidly growing town - population has grown over 16% in the last decade within a 1-mile radius

Tenant • Corporately Guaranteed Lease with 7-Eleven, Inc. backed by AA- Investment Grade

Credit (Standard & Poor’s) • Leased to globally recognized 7-Eleven, Inc., which has over 8,500 stores

nationwide with annual revenues in excess of $10.3 Billion

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F I N A N C I A L A N A L Y S I S

M A T T H E W S R E A L E S T A T E I N V E S T M E N T S E R V I C E S | 7

7 - E l e v e n3 0 1 S h o r t S t , S m i t h v i l l e T X 7 8 9 5 7

List Price .............................................................................................$ 543,000

CAP Rate - Current ................................................................................. 5.25 %

Gross Leasable Area .......................................................................± 2,476 SF

Lot Size ............................................................................................. ± 8,504 SF

Year Built ........................................................................................................1979

Annualized Operating DataMonthly Rent Annual Rent

7/1/2017 - 12/31/2024 $2,375.00 $28,500.00

1/1/2025 - 12/31/2029 $2,612.50 $31,350.00

Tenant Summary

Tenant Trade Name 7 - Eleven, Inc.

Type of Ownership Fee Simple

Roof and Structure Roof (Tenant), Structure (Landlord)

Original Lease Term 20 Years

Lease Commencement Date 7/1/1977

Rent Commencement Date 6/25/1977

Lease Expiration Date 12/31/2024

Term Remaining on Lease ±7.5 Years

Options One (1), Five (5) Year Options

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T E N A N T O V E R V I E W

M A T T H E W S R E A L E S T A T E I N V E S T M E N T S E R V I C E S | 9

TENANT OVERVIEW

Te n a n t O v e r v i e w7-Eleven is the world’s largest convenience store chain operating, franchising and licensing more than 60,000 stores in 18 countries and is also one of the nation’s largest independent gasoline retailers. As the pioneer of the convenience store concept, 7-Eleven strives to meet the needs of convenience-oriented guests by providing a broad selection of fresh, high-quality products and services at everyday fair prices, speedy transactions and a clean, friendly shopping environment. Each store maintains a selection of approximately 2,500 different products and services tailored to meet the needs and preferences of its local clientele. Stores typically vary in size from 2,400 to 3,000 square feet and are most often located on corners to maximize visibility and allow for easy access.

The company’s iconic products have become a substantial part of American culture from its well-known Big Gulp® fountain soft drink and Big Bite® grill items to the Slurpee® beverage and its fresh-brewed coffee. 7-Eleven’s food service offerings bring guests a proprietary line of prepared-fresh-daily and daily delivered deli sandwiches, wraps, breakfast sandwiches and a wide assortment fruits, salads and baked goods. Serving guests 24 hours a day is one of the cornerstones of 7-Eleven’s business.

MARKETING & COMPANY STRATEGYWith nonstop innovation, 7-Eleven and its product development teams continue to introduce new products as they search for new flavors, better recipes and useful inventions to satisfy time-constrained customers. Keeping pace with the ways technology is redefining how people shop, 7-Eleven has invested in software and business processes that have revolutionized store operations.

Furthermore, stores reap the benefits from the strong marketing campaigns and advertisements, including national TV and radio commercials, social media, special events and promotions and even public relations support.

GEOGRAPHIC REACHThe company operates, franchises and licenses approximately 10,700 stores in the U.S. and Canada. Of the close to 8,200 stores the company operates and franchises in the United States, more than 6,700 are franchised. Outside of the U.S. and Canada, there are more than 49,300 7-Eleven and other convenience stores in Japan, Taiwan, Thailand, South Korea, China, Malaysia, Mexico, Singapore, Australia, the Philippines, Indonesia, Norway, Sweden, Denmark and United Arab Emirates.

Company Name 7-Eleven Inc.

Ownership Private

No. of Locations (all) ± 60,000

No. of Employees ± 48,000

Headquartered Irving, Texas

Website www.7-eleven.com

Year Founded 1927

P R O P E R T Y O V E R V I E W

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T h e O f f e r i n gProperty Name Walgreens

Property Address301 Short St

Smithville, TX 78957

Parcel RI6459

Site Description

Number of Stories One

Year Built 1979

Gross Leasable Area (GLA) ± 2,476 SF

Lot Size ± 8,504 SF

Type of Ownership Fee Simple

Construction

Parking Surface Concrete

M A T T H E W S R E A L E S T A T E I N V E S T M E N T S E R V I C E S | 1 1

P a r c e l M a p

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Te n a n t M a p

A R E A O V E R V I E W

S m i t h v i l l e , T X - D e m o g r a p h i c s

Population 1 Mile 3 Mile 5 Mile

2022 Projection 4,009 5,301 7,172

2017 Estimate 3,789 5,006 6,783

2010 Census 3,524 4,650 6,318

Growth 2017 - 2022 5.81% 5.89% 5.74%

Growth 2010 - 2017 7.51% 7.67% 7.36%

Growth 2000 - 2010 0.53% 1.34% 2.32%

Households 1 Mile 3 Mile 5 Mile

2022 Projection 1,627 2,165 2,957

2017 Estimate 1,516 2,017 2,763

2010 Census 1,367 1,819 2,507

Growth 2017 - 2022 7.34% 7.35% 7.04%

Growth 2010 - 2017 10.89% 10.89% 10.22%

Income 1 Mile 3 Mile 5 Mile

2017 Est. AverageHousehold Income

$56,614 $58,749 $59,898

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M A T T H E W S R E A L E S T A T E I N V E S T M E N T S E R V I C E S | 1 5

S m i t h v i l l e , T X

Smithville, TX is strategically placed in the

center of 3 major cities. Just 2 hours from

Houston and San Antonio and only 1 hour

from the state capital, Austin, TX. Smithville

is a part of the Greater Austin Metropolitan

area while the cost of living in Smithville is

7.10% below the national average.

The area is full of history in film, the small

rail-road town atmosphere makes the town

desirable for cinematic moments for movies

including Hope Floats (1998) and The

Tree of Life (1998). This history and small-

town feel makes the area an attraction for

tourists to walk the streets exploring shops

and relax in this welcoming environment.

Smithville is located in Bastrop County,

Texas. The county is on the rise for

becoming in the southeast Austin area. It

provides modern shopping options without

the hustle and congestion of being in a

major city. The county is home to over 130

registered historic sites. The National trust

for Historic Preservations named Bastrop

one of its ‘Dozen Distinctive Destinations’

in 2010 and since 2012 has been titled a

Texas Cultural Arts District by the Texas

Commission on the Arts. Along being filled

with art and culture the county is located

on the Colorado River that provides an

abundance of outdoor activity including

fishing, kayaking biking, etc. The area also

has 3 18-hole golf courses, 2 state parks

and McKinney Roughs Nature Preserve.

1 6 | W A L G R E E N S - H U E Y T O W N

Located in Central Texas in the foothi l ls of Texas Hi l l Country, Aust in is the state capital and the cultural and economic center of the Aust in-Round Rock metropol i tan area. Regarded by most as the best choice in Texas, the Aust in area provides residents a balance of a strong economy, good educat ion, attract ive housing, a pleasant c l imate and plenty to do.

Vis i tors are welcome to indulge in the r ich cultural her i tage, plent i ful entertainment amenit ies, unique attract ions and outdoor recreat ion opportunit ies of this bust l ing, a lbeit la id-back, capital c i ty. Surrounded by beauti ful natural sett ings and abundant sunshine, Aust in offers an unparal leled qual i ty of l i fe for i ts low cost of l iv ing.

2 n D S A F E S T M A J O R C I T Y- t h e F B I

# 1 B E S T P L A C E s T O L I V E- U . S . N e w s & W O r l d r e p o r t

I N

# 1 G R O W I N G B U S I N E S S E S- F O R B E S

F O R

A U S T I N , T E X A S

B U S I N E S S C L I M AT E

T O P E M P L O Y E R S

Texas consistently ranks as one of the nation’s most favorable business climates based on its low tax burden and competitive regulatory environment. Austin’s reputation in key industries such as technology, life sciences and advanced manufacturing has shaped a professional climate that attracts new businesses from all over the world.

As a place that has established itself as a world leader of technology, innovation, energy, and workforce development, Austin is a hotbed for creativity and commerce that is spearheading the region’s business expansion and overall growth. Because people want to take advantage of the innovative, entrepreneurial spirit, the capital city continues to be a magnet for business, specifically high tech and small business startups.

Austin is well-positioned to do business with major markets in the United States and Latin America, allowing it to maintain a global competitive advantage. Consequently, the city also features national and global corporations amongst a strong network of independent, unique, locally owned firms and organizations.

T H E B I G P I C T U R EA u s t i n , T X U n i t e d s tat e s

3 . 5 %

2 . 8 %

$ 6 6 , 4 7 4

6 . 3 %

1 . 2 %

$ 6 4 , 5 8 5

U n e m p l o y m e n t R at e

R e c e n t j o b g r o w t h

M e d i a n F a m i ly i n c o m e

State of Texas

# 1

University of Texas at Austin

# 2

Dell

# 3

City of Austin

# 4

Federal Government

# 5

S I L I C O N H I L L SIn addition to spurring the development that has so greatly expanded this major center for high tech, a proliferation of technology companies gave rise to the region’s nickname: “the Silicon Hills”. High tech industries in the area include enterprise software, semiconductors, corporate R&D, biotechnology, gaming and a variety of startup companies. Meanwhile, companies with operations in the Silicon Hills include 3M, Silicon Labs, Advanced Micro Devices, Apple, Dropbox, eBay, PayPal, Google, Qualcomm, Oracle, Electronic Arts and Samsung Group. Upon accepting a $1.4 million grant to build a downtown office, Facebook arrived in the capital city in 2010. Austin’s Facebook office kept a relatively low profile until 2016 when the company filed building permits to expand its downtown office.

With thousands of graduates each year from the engineering and computer science programs at the University of Texas at Austin, Austin has a steady source of employees that are stimulating the technology and defense industry sectors. UT Austin brings an estimated $60 million in grants from the National Institutes of Health to the city. When added to the recent opening of its new Dell Medical School in mid-2016, which promises to bring even more intellectual property, lab space and grant money, it’s apparent that Austin has all the makings to become the country’s next big biotech hub.

E C O N O M I C D E V E L O P M E N T

Through the enactment of a friendly attitude into a business climate, the Austin region asserts that not only will it welcome new businesses, but it will also improve them. The city is a one-of-a-kind place, unique to Texas and to the whole country.

To effectively support and recruit business, the City’s Economic Development Department (EDD) strives to create a sustainable cultural and economic environment that enhances Austin’s strengths. Along with supporting local initiatives through cultural arts, music, downtown redevelopment, economic and small business programs, the EDD has integrated a core global focus to assist local businesses with international expansion and trade and increase jobs and investment in Austin. Via traditional and equity-based approaches, the EDD is leading global business expansion, urban regeneration, small business development, cultural arts and music efforts by fostering novel programs designed to increase the prosperity of Austin’s diverse communities and businesses.

Much like the EDD, the Austin Chamber of Commerce is heading development initiatives to promote regional economic growth, namely Opportunity Austin and Innovate Austin. The Chamber of Commerce has the capacity so support business growth and aims to provide tools and services that will assist with making data-driven decisions when businesses are considering relocating, starting or expanding in the Greater Austin region.

O p p o r t u n i t y a u s t i n 3 . 0

Opportunity Austin a regional five-county strategy for job creation through recruitment and expansion in Central Texas. Working collaboratively with regional partners, the Chamber promotes the Greater Austin area as a cost competitive region for business within key industry segments. Originally launched in 2004, Opportunity Austin is now in its third phase called Opportunity Austin 3.0; This current five-year phase sets out ventures for priorities, including boosting economic diversification, deepening the talent pool and keeping the Greater Austin region attractive to entrepreneurs, business leaders and site selectors through regional collaboration.

I N N O VAT E A U S T I N

Innovate Austin is an economic development plan fixated on making Austin the top region to establish and grow a technology and innovation based business. By providing thought-leadership and strategy, Innovate Austin advocates for the innovation community. The development plan’s primary focus is on attracting and retaining talent, increasing capital, growing and diversifying the innovation ecosystem and leveraging local universities for increase commercialization.

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M A T T H E W S R E A L E S T A T E I N V E S T M E N T S E R V I C E S | 1 9

U n i v e r s i t y o f T e x a s at a u s t i n

Also referred to as UT Austin, the University of Texas at Austin is the flagship school of the University of Texas System, which includes nine academic universities and six health institutions statewide. Located about one mile from the Texas State Capitol in Austin, this public research university has the seventh-largest single-campus enrollment with over 51,000 students and 3,000 teaching faculty. More than 100 undergraduate and 170 graduate degrees are available to students as well as dozens of top-ranked programs with a proven record of success.

UT Austin continues to expand its facilities on campus and thanks to its proud alumni base of more than 482,000, notably Michael Dell, the new Dell Medical School welcomed its first class of 50 students in June 2016. An abiding symbol of the spirt of Texas, the university cultivates economic and social progress as a leading center of knowledge and innovation.

T E X A S H I L L C O U N T R Y

Arguably the most beautiful area in Texas, the Texas Hill Country is a 25-county region of Central and South Texas that extends from just north of Austin down south to San Antonio. Central to Texas, the Hill Country is considered the heart and soul of the state. With over 14,000 square miles of hills, lakes, live oak trees and winding roads, this region attracts millions of people each year, be it for a weekend getaway or a vacation.

Located deep in the heart of this uniquely charming area, the countryside is reminiscent of the wine growing regions of central Italy and the Rhone Valley in France. An array of visually stunning vineyards and wineries are scattered throughout the Hill Country, from downtown Austin to Fredericksburg and Lampasas to New Braunfels. Given that it is one of the fastest growing wine-producing regions in the country, the Hill Country has emerged as one of the top wine destinations in the world, drawing more than five million visitors each year to the Texas Hill Country Wineries.

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of 7 - Eleven located at 301 Short St . Smithvi le, TX . I t has been prepared by Matthews Retai l Advisors. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T

11-2-2015

Information About Brokerage ServicesTexas law requires all real estate license holders to give the following informaƟon about

brokerage services to prospecƟve buyers, tenants, sellers and landlords.

TYPES OF REAL ESTATE LICENSE HOLDERS: .• A BROKER is responsible for all brokerage acƟviƟes, 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 informaƟon about the property or transacƟon received by the broker; • Answer the client’s quesƟons and present any offer to or counter-offer from the client; and • Treat all parƟes to a real estate transacƟon 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 wriƩen lisƟng to sell or property management agreement. An owner's agent must perform the broker’s minimum duƟes above and must inform the owner of any material informaƟon about the property or transacƟon known by the agent, including informaƟon 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 wriƩen representaƟon agreement. A buyer's agent must perform the broker’s minimum duƟes above and must inform the buyer of any material informaƟon about the property or transacƟon known by the agent, including informaƟon disclosed to the agent by the seller or seller’s agent.

AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parƟes the broker must first obtain the wriƩen agreement of each party to the transacƟon. The wriƩen agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligaƟons as an intermediary. A broker who acts as an intermediary:

• Must treat all parƟes to the transacƟon imparƟally and fairly; • May, with the parƟes' wriƩen 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 instrucƟons of each party to the transacƟon. • Must not, unless specifically authorized in wriƟng to do so by the party, disclose:

ᴑ that the owner will accept a price less than the wriƩen asking price; ᴑ that the buyer/tenant will pay a price greater than the price submiƩed in a wriƩen offer; and ᴑ any confidenƟal informaƟon or any other informaƟon that a party specifically instructs the broker in wriƟng 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 transacƟon 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 duƟes and responsibiliƟes to you, and your obligaƟons under the representaƟon 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 noƟce is being provided for informaƟon purposes. It does not create an obligaƟon for you to use the broker’s services. Please acknowledge receipt of this noƟce below and retain a copy for your records.

Licensed Broker /Broker Firm Name or Primary Assumed Business Name

License No. Email Phone

Designated Broker of Firm License No. Email Phone

Licensed Supervisor of Sales Agent/Associate

License No. Email Phone

Sales Agent/Associate’s Name License No. Email Phone

Regulated by the Texas Real Estate Commission

Buyer/Tenant/Seller/Landlord Initials

InformaƟon available at www.trec.texas.gov IABS 1-0

Date

Kyle Matthews/Matthews Retail Group Inc. 678067 kyle.matthews@matthews.com (310) 919-5757

Kyle Matthews 678067 kyle.matthews@matthews.com (310) 919-5757

KYLE MATTHEWSBROKER OF RECORDLic # 678067

E XC LU S I V E LY L I S T E D BY

7 - E l e v e n3 0 1 S h o r t S t | S m i t h v i l l e T X 7 8 9 5 7

O F F E R I N G M E M O R A N D U M

™

MICHAEL MORENOSenior Associate

Michael .Moreno@matthews.comDIR (949) 432-4511MOB (818) 522-4497LIC # 01982943 (CA)

RAHUL CHHAJEDSingle Tenant Lease

Rahul .Chhajed@matthews.comDIR (949) 432-4513MOB (818) 434-1106LIC # 01986299 (CA)

ARON CLINESVP & Sr. Director

Aron.Cl ine@matthews.comDIR (949) 432-4509MOB (818) 632-0233LIC # 01904371 (CA)