214.915.8890

JOE CAPUTO

joe@exp1031.com

BOB MOORHEAD

bob@exp1031.com

RUSSELL SMITH

russell@exp1031.com

property. Newly renovated 6,523+ SF building on 0.83+ acre site.

lease structure. Brand new, net leases. 3-tenant property features Jollibee Chicken & Burgers , Red Ribbon Bakeshop, and Jersey Mike’s Subs.

location. The subject property is located at the intersection of South Main Street (49,582 Cars / Day) and Old Spanish Trail (28,726 Cars / Day). The site is just

south of the Texas Medical Center which is the largest medical center in the world. The center contains 50 medicine-related institutions, including 15 hospitals and

2 specialty institutions, 2 medical schools, 4 nursing schools, and schools of dentistry, public health, pharmacy, and other health-related practices. The site is next

to a Super Target and near Walgreens, Olive Garden, Smashburger, Chipotle, Big Lots, and Quizno’s. An H-E-B supermarket is also nearby to the east. The

Houston-Sugar Land-Baytown Metropolitan Statistical Area (MSA), colloquially known as Greater Houston, is the 6th largest in the United States with a population

of 5,946,800.

EXCLUSIVE OFFERING | $2,890,000 / 7.00% CAP

JOLLIBEE chicken & burgers, RED RIBBON BAKESHOP, & JERSEY MIKE’S SUBS

8001 MAIN STREET, Houston, TX

SUBJECT PROPERTY

EXP Realty Advisors, Inc. (“Agent”) has been engaged as an agent for the sale of the

property located in the southeast corner of 8001 Main Street, Houston, TX by the owner of

the Property (“Seller”). The Property is being offered for sale in an “as-is, where-is”

condition and Seller and Agent make no representations or warranties as to the accuracy of

the information contained in this Offering Memorandum. The enclosed materials include

highly confidential information and are being furnished solely for the purpose of review by

prospective purchasers of the interest described herein. The enclosed materials are being

provided solely to facilitate the prospective investor’s own due diligence for which it shall be

fully and solely responsible. The material contained herein is based on information and

sources deemed to be reliable, but no representation or warranty, express or implied, is

being made by Agent or Seller or any of their respective representatives, affiliates, officers,

employees, shareholders, partners and directors, as to the accuracy or completeness of the

information contained herein. Summaries contained herein of any legal or other documents

are not intended to be comprehensive statements of the terms of such documents, but

rather only outlines of some of the principal provisions contained therein. Neither the Agent

nor the Seller shall have any liability whatsoever for the accuracy or completeness of the

information contained herein or any other written or oral communication or information

transmitted or made available or any action taken or decision made by the recipient with

respect to the Property. Interested parties are to make their own investigations, projections

and conclusions without reliance upon the material contained herein. Seller reserves the

right, at its sole and absolute discretion, to withdraw the Property from being marketed for

sale at any time and for any reason. Seller and Agent each expressly reserves the right, at

their sole and absolute discretion, to reject any and all expressions of interest or offers

regarding the Property and/or to terminate discussions with any entity at any time, with or

without notice. This offering is made subject to omissions, correction of errors, change of

price or other terms, prior sale or withdrawal from the market without notice. Agent is not

authorized to make any representations or agreements on behalf of Seller. Seller shall

have no legal commitment or obligation to any interested party reviewing the enclosed

materials, performing additional investigation and/or making an offer to purchase the

Property unless and until a binding written agreement for the purchase of the Property has

been fully executed, delivered, and approved by Seller and any conditions to Seller’s

obligations hereunder have been satisfied or waived. By taking possession of and

reviewing the information contained herein, the recipient agrees that (a) the enclosed

materials and their contents are of a highly confidential nature and will be held and treated

in the strictest confidence and shall be returned to Agent or Seller promptly upon request;

and (b) the recipient shall not contact employees or tenants of the Property directly or

indirectly regarding any aspect of the enclosed materials or the Property without the prior

written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be

copied or otherwise reproduced without the prior written authorization of Seller and Agent.

Disclaimer

PAGE 3: INVESTMENT / TENANT OVERVIEW

PAGE 1: COVER

PAGE 2: TABLE OF CONTENTS | DISCLAIMER

PAGE 10-11: LOCATION MAPS

PAGE 12: DEMOGRAPHICS

Table of contents | Disclaimer JOLLIBEE chicken & burgers, RED RIBBON BAKESHOP, & JERSEY MIKE’S SUBS

8001 MAIN STREET, Houston, TX

PAGE 8: AERIAL PHOTO

PAGE 9: LOCATION OVERVIEW

PAGE 6: SITE PLAN

PAGE 4: RENT ROLL

PAGE 7: PROPERTY PHOTO

PAGE 5: TENANT ARTICLE

3

JERSEY MIKE’S SUBS | www.jerseymikes.com

Started at the Jersey Shore in 1956, Jersey Mike's continued its steady growth in 2012 opening 92 new restaurants throughout the country, a 33

percent increase in new store growth over 2011. Today, Peter Cancro is CEO of Jersey Mike's Franchise Systems Inc., overseeing more than

600 locations open and under development. Terry Nordenstrom, franchisee, recently opened his 9th Jersey Mike’s location and collects royalties

on 5 other locations from operators in Corpus Christi and the Rio Grande Valley, where he has franchise rights. There are currently 4 locations

that operate under the same leasing entity JM Team Success, LLC. There is also a strong personal guarantee for the first 36 months of the

primary term.

PRICE: $2,890,000

CAP RATE: 7.00%

NET OPERATING INCOME: $205,251

BUILDING AREA: 6,523+ Square Feet

LAND AREA: 0.83+ Acres

YEAR BUILT / RENOVATED: 1992 / 2013

LANDLORD RESPONSIBILITY: Includes Roof & Structure

OWNERSHIP: Fee Simple Interest

OCCUPANCY: 100% (February 2014)

Investment overview | TENANT OVERVIEW JOLLIBEE chicken & burgers, RED RIBBON BAKESHOP, & JERSEY MIKE’S SUBS

8001 MAIN STREET, Houston, TX

Tenant overview

JOLLIBEE | www.jollieee.com.ph

Jollibee is the largest fast food chain in the Philippines, operating a nationwide network of over 750 stores. A dominant market leader in the

Philippines, Jollibee enjoys the lion’s share of the local market that is more than all the other multinational brands combined. The company has

also embarked on an aggressive international expansion plan in the USA, Vietnam, Hong Kong, Saudi Arabia, Qatar and Brunei, firmly

establishing itself as a growing international QSR player. Sales growth was broad-based and volume driven resulting from better-value-for-

money recognition by consumers on its products and services. Sales of Philippine brands rose by 9.6% and those abroad grew by 22.6%. The

China business grew by 26.5%, the United States by 12.6% and the Southeast Asia and the Middle East region by 24.7%. Store network

worldwide grew organically by 5.5% versus year ago.

RED RIBBON BAKESHOP | www.redribbonbakeshop.us

Red Ribbon Bakeshop grew from a homemaker’s hobby of baking cakes, lovingly shared in the frequent get-togethers of a typical extended

family. Since 1984, when the first store in the USA opened at West Covina, California, superior quality has been a source of corporate pride.

Red Ribbon cakes, breads and pastries consistently win in product tests versus the competition.. The Los Angeles Times has twice cited Red

Ribbon’s MANGO CAKE and UBE CAKE as the ”BEST OF L.A.” Today the company has 23 locations in 8 US States. In 2005, Red Ribbon was

acquired by Jollibee Foods Corporation, a conglomerate of popular fast-food chains in the Philippines.

CORPORATE

CORPORATE

FRANCHISEE

4

RENT ROLL JOLLIBEE chicken & burgers, RED RIBBON BAKESHOP, & JERSEY MIKE’S SUBS

8001 MAIN STREET, Houston, TX

Square Years Rent Rent Lease

Tenant Feet GLA Begin End Remain Begin Monthly PSF Annually PSF Type Options / Notes

4,047 62% Jun-13 May-23 10 Jun-13 $11,129 $2.75 $133,551 $33.00 10% Rent Increases Every 5-Yrs.

Jun-18 $12,242 $3.02 $146,906 $36.30 Tw o (2) Five (5) Year Options

Option 1 Jun-23 $13,152 $3.25 $157,833 $39.00

Option 2 Jun-28 $14,468 $3.57 $173,616 $42.90

1,076 16% Feb-14 Feb-24 10 Feb-14 $2,241 $2.08 $26,900 $25.00 10% Rent Increases Every 5-Yrs.

Feb-19 $2,465 $2.29 $29,590 $27.50 Tw o (2) Five (5) Year Options

Option 1 Feb-24 $2,712 $2.52 $32,549 $30.25

Option 2 Feb-29 $2,984 $2.77 $35,809 $33.28

1,400 21% Feb-13 Feb-23 10 Feb-13 $3,733 $2.67 $44,800 $32.00 Net Three (3) Five (5) Year Options

Aug-14 $3,850 $2.21 $46,200 $33.00

Feb-16 $4,083 $2.92 $49,000 $35.00

Feb-18 $4,316 $3.08 $51,800 $37.00

Option 1 Feb-23 $4,748 $3.39 $56,980 $40.70

Option 2 Feb-28 $5,223 $3.73 $62,678 $44.77

Option 3 Feb-33 $5,745 $4.10 $68,950 $49.25

TOTALS 6,523 100% Current $17,103 $205,251

*Landlord respons ibi l i ties include roof and s tructure

**Jersey Mike's has a one time early termination option as of February 28, 2018

*** Red Ribbon Bakeshop is a Jol l ibee Foods Corporation company

Net

Net

Honeybee Foods

Corporation dba Jollibee

Restaurant

JM Team Success, LLC

dba Jersey Mike's Subs

Red Ribbon Bakeshop, Inc.

dba Red Ribbon Bakeshop

Lease Term

5

Tenant article JOLLIBEE chicken & burgers, RED RIBBON BAKESHOP, & JERSEY MIKE’S SUBS

8001 MAIN STREET, Houston, TX

Source: http://blog.chron.com/foodchronicles/2013/09/mob-scene-in-a-monsoon-at-new-filipino-fast-food-spot/

Mob scene in a monsoon at new Filipino fast-food spot

September 17, 2013

I thought I was so smart going to Jollibee, the new Filipino fast-food spot near the medical center, on a Monday mid-afternoon. Surely the crowds of Filipino expats hungry for the chain’s fried chicken, burgers and noodles had subsided since the grand opening last Thursday, right? Wrong. As I pulled into the jammed parking lot at 8001 South Main, just north of its intersection with Old Spanish Trail, I spied a line snaking out of the front door and around the corner, then zig-zagging beneath temporary awnings set up in the parking lot. It was 3 p.m. and rain was pelting down. The jolly bee mascot standing out front had water pouring from its wings in great gouts. Under the awnings and the building overhang, the prospective customers looked slightly damp.

But they were excited and talkative. Co-workers exchanged greetings as they spotted each other in line. Strangers exchanged war stories about how many times they had been to Jollibee in the five days since it opened and how long they had waited to get in the door. A pretty young woman in Daisy Dukes told me her whole family was inside, waiting for her and her boyfriend to pass the threshold. At the door, young men and women with clipboards did crowd control, taking orders and taking note of large parties that would need to be seated together. When I finally made it inside, the dining room was packed. It looked fancier than I expected for a chicken-and-burger joint, with retro mid-century modern textiles and a flock of sleek lacquered lanterns suspended from the ceiling. I paid for my food at the counter and wandered around looking for a seat. Not so easy, because the Jollibee chain, which touts its family orientation in its relentlessly cheerful corporate website, has no seating for solo diners. There’s no counter of the sort American burger joints are likely to have, and no little two-tops, either. It’s basically extended-family heaven. I even spotted a few handwritten “reserved” signs on some of the larger tables, a temporary measure taken to preserve order in the crush. At a swoop of semicircular banquette surrounded by freestanding plastic chairs, I spied Ms. Daisy Duke and her clan, at least ten strong and laughing uproariously. Eventually a genteel woman named Rose beckoned me to share her table. “I’m just waiting for the rain to stop,” she said,with a glance at the monsoon outside. It was her second visit in search of this particular taste of home. Jollibee is a powerhouse in the Philippines, where it operates over 750 stores. Now it’s expanding internationally in everywhere from Vietnam to Hong Kong to Saudi Arabia, with 26 locations in the United States, most on the West Coast.

This Jollibee is the first in Texas, and with so many Filipinos working at the Medical Center, Houston was a natural choice. Indeed, many of the crowd on Monday were still wearing scrubs. There’s obviously a huge pent-up demand here for the nostalgic flavors of Jollibee’s fried chicken and noodles — particularly its distinctive spaghetti, clad in a slightly sweet tomato sauce laced with hot dog slices and rough-textured sausage cubes along with pinpoints of ground meat, plus a gilding of orange cheese on top. Not having grown up on this spaghetti, I still found it an agreeable little blast of childhood, and the sweet Filipino topspin made it taste even more like nursery food to me. It’s popular in combination with the fried chicken, which I found a bit jarring but seemed to make everyone else in the place rejoice. The chicken itself — dubbed “Chickenjoy” in Jollibeespeak — was good and crisp and juicy. It did not awaken in me the ecstasies reported by some of the Filipino expats on Yelp, but that’s to be expected. It’s solidly done. I’m still coming to terms with the famed Jollibee burger. I ordered the charmingly named Big Yum, which is the basic Yum Burger writ larger (1/3 lb. ) and adorned with lettuce, tomato, cheese, ketchup and mayo. Lots of mayo. Mayo enough to squish the flavor and texture profile. The ground-beef patty seemed a little alien, in that it had the salty seasoning and uniform, crumbly texture of meatloaf, with not much sear to set off the interior. It was fine in its way, but it took some getting used to. I missed the mustard and onion that are essential to a Texan’s burger pleasure. At $4.29, the Big Yum was not inexpensive. Rose, my tablemate, extolled the virtues of her Fiesta noodles, a dish that in her home country is known as palabok, and is sauced with ground pork, shrimp, chicharron bits, smoked fish flakes and slices of hardboiled egg. She had ordered it twice in the days since Jolibee opened. And, she confessed, she had done just what I did with the two different fried pies we had ordered: taken a few bites of each, the better to compare and contrast. Rose preferred the slight tartness of the peach-and-mango pie, a crackly-skinned pastry oblong. I was drawn to the caramelized banana with jackfruit, probably because it seemed more exotic to me. But both were surprisingly good for what they were: a mass-produced fried pie, not some artisanal hand rolled pastry stuffed with fresh fruit. I pulled up the big tapioca balls in my coconut-pandan freeze, which was a lovely shade of pale green, as the rainstorm continued unabated. “Earlier it was raining while the sun shone,” Rose observed. “In Puerto Rico they say that’s when the witches are getting married,” I told her. “In the Philippines,” she returned, ”we say that’s when the buffalo are being born.” The water buffalo, of course. Eventually I had to flee across the parking lot in an ankle-deep river. Thanks to an hour of gale-force rains, the line outside Jollibee’s door had finally dispersed.

6

Site plan JOLLIBEE chicken & burgers, RED RIBBON BAKESHOP, & JERSEY MIKE’S SUBS

8001 MAIN STREET, Houston, TX

7

PROPERTY PHOTO JOLLIBEE chicken & burgers, RED RIBBON BAKESHOP, & JERSEY MIKE’S SUBS

8001 MAIN STREET, Houston, TX

8

Aerial photo JOLLIBEE chicken & burgers, RED RIBBON BAKESHOP, & JERSEY MIKE’S SUBS

8001 MAIN STREET, Houston, TX

Reliant

Astromdome

IMMEDIATE TRADE AREA

The subject property is located at the intersection of South Main Street (49,582

Cars / Day) and Old Spanish Trail (28,726 Cars / Day). South Main Street is a

main arterial road that traverses the immediate trade area and pulls in traffic

from both the Houston central business district to the north and Interstate 610

(221,880 Cars / Day) which is located immediately south of the site.

The site is just south of the Texas Medical Center which is the largest medical

center in the world. The center contains 50 medicine-related institutions,

including 15 hospitals and 2 specialty institutions, 2 medical schools, 4 nursing

schools, and schools of dentistry, public health, pharmacy, and other health-

related practices. The Texas Medical Center receives 160,000 daily visitors

and over 7 million annual patient visits, including over 18,000 international

patients. In 2011, the center employed over 106,000 people, including 20,000

physicians, scientists, researchers and other advanced degree professionals in

the life sciences. The subject property is also just south of globally renowned

Rice University (6,082 Students). The Rice University campus encompasses

295-acres and has a faculty and staff of 2,752.

The visibility and accessibility of the trade area have drawn numerous national

credit tenants. The site is next to a Super Target and near Walgreens, Olive

Garden, Smashburger, Chipotle, Big Lots, and Quizno’s. An H-E-B

supermarket is also nearby to the east.

Reliant Park which includes Reliant Stadium and the Astrodome is just south of

the subject property. The Reliant Center is a convention center. Offering over

706,000 square feet of contiguous single-level exhibit space divisible into 11

separate halls.

HOUSTON, TEXAS

In 2006, Greater Houston ranked 1st in Texas and 3rd in the U.S. within the

category of "Best Places for Business and Careers" by Forbes. The Greater

Houston Gross Metropolitan Product (GMP) in 2005 was $308.7 billion, up 5.4

percent from 2004 in constant dollars. By 2010, the GMP rose to $384 billion,

5th in the nation. Only 28 nations other than the United States have a GDP

exceeding the Greater Houston GMP. Mining, which in Houston is almost

entirely oil and gas exploration and production, accounts for 11% of Greater

Houston's GMP.

Houston is second to New York City in Fortune 500 headquarters. Galveston

Bay and the Buffalo Bayou together form one of the most important shipping

hubs in the world, and the Port of Houston, the Port of Texas City, and the Port

of Galveston are all major seaports located in Greater Houston. The area is

one of the leading centers of the energy industry, particularly petroleum

processing, and many companies have large operations in this region. The

MSA comprises the largest petrochemical manufacturing area in the world,

including for synthetic rubber, insecticides, and fertilizers..

Much of metro area's success as a petrochemical complex is enabled by the

Houston Ship Channel. The area is also the world's leading center for building

oilfield equipment, and is a major center of biomedical research, aeronautics,

and high-technology. Because of these economic trades, many residents have

moved to the Houston area from other U.S. states, as well as hundreds of

countries worldwide.

Houston is home to the Texas Medical Center—the largest medical center in

the world—several universities (including Rice University, Texas Southern

University, and The University of Houston), and two of the largest systems of

higher learning in the United States (The Houston and Lone Star Community

College systems). The University of Houston’s annual impact on the Houston-

area's economy alone equates to that of a major corporation: $1.1 billion in new

funds attracted annually to the Houston area, $3.13 billion in total economic

benefit, and 24,000 local jobs generated.

HOUSTON-SUGAR LAND-BAYTOWN METROPOLITAN AREA

The Houston-Sugar Land-Baytown Metropolitan Statistical Area (MSA),

colloquially known as Greater Houston, is the 6th largest in the United States

with a population of 5,946,800. From 2000 to 2030, the metropolitan area is

projected by Woods & Poole Economics to rank 5th in the nation in population

growth—adding 2.66 million people.

Harris County had a population of 4.1 million according to the 2010 census,

which makes the county the most populous in Texas and the 3rd most populous

in the US. This size of the labor force coupled with a business friendly local

regulatory climate have lured numerous businesses to operate in Harris

County.

CNN/Money and Money Magazine have recognized 5 cities in the Greater

Houston area the past 3-years as part of its 100 Best Places to Live in the United States.

9

Location overview JOLLIBEE chicken & burgers, RED RIBBON BAKESHOP, & JERSEY MIKE’S SUBS

8001 MAIN STREET, Houston, TX

10

Location map JOLLIBEE chicken & burgers, RED RIBBON BAKESHOP, & JERSEY MIKE’S SUBS

8001 MAIN STREET, Houston, TX

11

Location map JOLLIBEE chicken & burgers, RED RIBBON BAKESHOP, & JERSEY MIKE’S SUBS

8001 MAIN STREET, Houston, TX

DEMOGRAPHIC SNAPSHOT

Texas Medical Center

12

Demographics JOLLIBEE chicken & burgers, RED RIBBON BAKESHOP, & JERSEY MIKE’S SUBS

8001 MAIN STREET, Houston, TX

Downtown Houston, Texas

Radius 1 Mile 3 Mile 5 Mile

Population:

2017 Projection 17,120 123,694 428,936

2012 Estimate 15,752 115,360 399,473

2010 Census 15,195 112,427 388,940

Growth 2012-2017 8.70% 7.20% 7.40%

Growth 2010-2012 3.70% 2.60% 2.70%

Households:

2017 Projection 8,671 54,744 180,722

2012 Estimate 7,967 51,052 168,790

2010 Census 7,619 49,511 163,787

Growth 2012-2017 8.80% 7.20% 7.10%

Growth 2010-2012 4.60% 3.10% 3.10%

Owner Occupied 2,803 23,672 72,003

Renter Occupied 5,164 27,380 96,787

2012 Avg Household Income $69,242 $98,456 $79,477

2012 Med Household Income $43,009 $60,855 $46,532

2012 Per Capita Income $34,745 $44,969 $34,363

2012 Households by Household Inc:

Income Less than $15,000 1,351 6,242 27,570

Income $15,000 - $24,999 957 4,851 20,941

Income $25,000 - $34,999 1,028 4,833 18,210

Income $35,000 - $49,999 1,062 5,802 21,627

Income $50,000 - $74,999 1,243 7,295 23,810

Income $75,000 - $99,999 658 4,487 13,298

Income $100,000 - $149,999 772 6,517 18,140

Income $150,000 - $199,999 450 4,106 9,836

Income $200,000+ 445 6,914 15,355