espada offering memorandum - commercial real estate ...espada shopping center san antonio, tx this...

OFFERING MEMORANDUM

SAN ANTONIO, TX

CONFIDENTIALITY AND DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly

confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap

and should not be made available to any other person or entity without the written consent of

Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified

information to prospective purchasers, and to establish only a preliminary level of interest in the

subject property. The information contained herein is not a substitute for a thorough due

diligence investigation. Marcus & Millichap has not made any investigation, and makes no

warranty or representation, with respect to the income or expenses for the subject property, the

future projected financial performance of the property, the size and square footage of the property

and improvements, the presence or absence of contaminating substances, PCB's or asbestos,

the compliance with State and Federal regulations, the physical condition of the improvements

thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or

intentions to continue its occupancy of the subject property. The information contained in this

Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus

& Millichap has not verified, and will not verify, any of the information contained herein, nor has

Marcus & Millichap conducted any investigation regarding these matters and makes no warranty

or representation whatsoever regarding the accuracy or completeness of the information

provided. All potential buyers must take appropriate measures to verify all of the information set

forth herein.

SAN ANTONIO, TX

Section 1 PROPERTY DESCRIPTION

Section 2 PRICING AND FINANCIAL ANALYSIS

Section 3 MARKET OVERVIEW

Section 4 DEMOGRAPHIC ANALYSIS

TABLE OF CONTENTS

SAN ANTONIO, TX

SAN ANTONIO, TX

PROPERTY DESCRIPTION

Marcus & Millichap is pleased to present this 100 percent occupied, newly developed shopping center at the intersection of Loop 410 and 281 South.

The intersection accommodates more than 60,000 cars per day and is shared with national names such as Jack in the Box (open 24 hours), McDonalds, and Holiday Inn Express.

The area has been benefiting from explosive growth due to the recently discovered Eagle Ford Shale which has created an oil and natural boom for the South Texas economy (See page 19 in the Market Overview). The Holiday Inn Express, located across Loop 410 is fully occupied for nearly the entire year. Additionally, the area is benefiting from the newly constructioned Texas A&M University - San Antonio campus with more than 4,000 students in its first full academic year (2011-2012) and more than 25,000 students expected by 2025.

Espada Shopping Center is 100 percent occupied with a mix of regional and local tenants on NNN leases. The adjacent pad sites are currently under negotiations for various uses and are ready for development.

Investment Highlights

■ Located at the Intersection of Loop410 and 281 South

■ High Traffic Area - Over 40,000 VPDon Loop 410

■ 100 Percent Occupied in a RapidlyDeveloping Submarket

■ New 2009 Construction

■ Near new Texas A&M San AntonioCampus with More Than 4,000Students in its First Full AcademicYear (2011- 2012) and 25,000Students Expected in 2025

1

PROPERTY DESCRIPTIONEspada Shopping CenterSAN ANTONIO, TX

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. References to square footage or age are approximate. Buyer mustverify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a servicemark of Marcus & Millichap Real Estate Investment Services, Inc. © 2012 Marcus & Millichap T0490031

INVESTMENT OVERVIEW

The Offering

Property Espada Shopping Center

Property Address 11643 SE Loop 410

San Antonio, TX 78221

Site Description

Number of Stories 1

Year Built 2009

Gross Leasable Area (GLA) 13,958 SF

Lot Size 2.518 AC

Type of Ownership Fee Simple

Landscaping Moderate

Topography Relatively Flat

Construction

Foundation Concrete Slab

Parking Surface Concrete

2



PROPERTY SUMMARY

Construction

Features

■ Spanish Tile Awnings Along Storefront

■ Varied Roof Line and Neutral Paint Scheme

■ Anodized Aluminum Frames around GlassStorefronts

■ Highly Visible Pylon Signage

■ Concrete Parking and Service Areas

■ Curbed, Lighted Parking Area with Attractive Landscaping

■ Tower Features on End Cap Units Feature Spanish Tile

■ Concrete Sidewalk Along Entire Tenant Store Frontage

■ Attractive Landscaping Does not Obstruct Visibility

3



PROPERTY FEATURES

4



PROPERTY PHOTOS

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PROPERTY PHOTOS

6

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.References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is aservice mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2012 Marcus & Millichap T0490031


AERIAL PHOTO

Espada Shopping CenterSAN ANTONIO, TX

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SITE PLAN


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FLOOR PLAN

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Local Map Regional Map

AREA MAPS

SAN ANTONIO, TX

PRICING AND FINANCIAL ANALYSIS

Price $2,600,000

Down Payment 35% $910,000

Price per Square Foot (GLA) $186.27

Gross Leasable Area (GLA) 13,958

Year Built 2009

Lot Size 2.518 AC

VITAL DATA

CAP Rate - Current 8.82%

Net Operating Income - Current $229,326

Net Cash Flow After Debt Service - Current $107,798

Total Return - Current 15.54% / $141,402

11

Major Tenants


Tenant Name

24 Hour Subway - Corporate Lease

Money Mart Pawn

East China Bistro

Cricket Wireless

Pare De Sufrir - Community Organization


Major Employers

Employer

San Antonio Police Department - Training Academy

Texas A&M University - San Antonio

Toyota Manufacturing

Swift Worldwide Resources

Marathon Oil


OFFERING SUMMARY

12

PRICING AND FINANCIAL ANALYSISEspada Shopping CenterSAN ANTONIO, TX

Existing FinancingLoan Type Free and Clear


Proposed Financing

First Trust DeedLoan Amount $1,690,000

Loan Type Proposed New

Interest Rate 5.25%

Amortization 25 Years

Loan to Value 65%

Debt Coverage Ratio 1.89

FINANCING

13



Comments

(1) Universal Church: If during the Lease Term Lessee wishes to relocate to a completed and ready to operate church built by Lessee on the landsold to Lessee by Lessor pursuant to the sale and purchase contract with an effective date of 24 November 2010 (which, then Tenant shall have a one-time right to terminate the lease early without penalty at any time after the end of the fourth (4th) year by giving Landlord written notice of Tenant’sintent not less than 180 days prior to end of the fourth (4th) year.

(2) Money Mart Pawn: Lessee shall have a one-time right to terminate the lease early without penalty at any time during the initial term of the lease orthe extension term (if the extension option provided in this First Addendum to Lease is exercised by Lessee) if Lessee intends to relocate directly fromthe leased premises to a completed and ready to operate building built by Lessee on land sold to Lessee by Lessor (“Lessee’s Replacement Store”).This right of early termination shall be exercised by Lessee serving Lessor with written notice of Lessee’s intent not less than 120 days prior to the dateon which Lessee will move into Lessee’s Replacement Store. This Lease will then terminate with effect on the day on which Lessee opens forbusiness in Lessee’s Replacement Store and Lessor and Lessee shall thereupon be released from performance of further obligation under this Lease.

(3) Cricket Wireless: Early Termination: lt is hereby agreed that at any time after 0 I November 2014 Lessee shall have the right to give Lessor 90days advance written notice of its intention to terminate the Lease early. Upon exercising the said early temination right Lessee shall reimburse Lessorthe full amount or Lessor's unamortized costs and expenses in respect of leasing commissions and construction costs to prepare the Premises inaccordance with Exhibit C of the Lease (the EarlyTemination Reimbursement"). Conditional upon Lessee having first paid Lessor theEarly Termination Reimbursement, the Lease shall teminate 90 days after valid service of the said 90 day notice period. If the EarlyTerminarionReimbursement is not pald within the 90 day notice period, then the Lease shall continue in full force and effect until such date as the EarlyTermination Reimbursement has been fully paid to Lessor.

TENANT SUMMARY

Suite Tenant GLA % ofGLA

Lease

Start

LeaseExpire

AnnualRent

Rent/SF

ChangesOn

ChangesTo

ExpenseReimbs.

LeaseType

Options

101 Subway (24 hrs.) 1,450 10.39% 12-15-09 12-31-14 $31,900.00 $22.00 1-1-15 $34,800.00 $9,152.34 NNN 3 - 5yr

103 Laura's DryCleaning

1,065 7.63% 2-1-10 2-1-15 $14,910.00 $14.00 2-1-13 $15,975.00 $6,721.11 NNN 1 - 5yr

105-109

UniversalChurch (1)

4,180 29.95% 6-6-11 6-30-16 $83,600.00 $20.00 7-1-16 $96,140.00 $26,382.00 NNN 1 - 2yr

111 Cricket Wireless(3)

1,283 9.19% 8-31-11 8-31-16 $19,245.00 $15.00 8-31-14 $21,170.00 $8,095.29 NNN

115-117

Money MartPawn (2)

3,220 23.07% 5-17-12 5-31-17 $54,740.00 $17.00 6-1-14 $61,176.00 $20,321.90 NNN 1 - 5yr

117-119

East ChinaBistro (withDrive-Thru)

2,760 19.77% 4-19-11 4-28-16 $46,920.00 $17.00 5-1-13 $55,200.00 $17,414.99 NNN 1 -5yr

Tenant Name: Subway Real Estate Corporation (Corporate Lease)

Lease December 5, 2009

Lease Expiration: December 31, 2014

Gross Leasable Area 1,450

Original Term: Five Years

Option Term: Three, Five Year Options

Pro Rata Share of 10%

Headquartered: Milford, Connecticut

No. of Locations: 36,900 (corporate) | 900 (operator)

Web Site: www.subway.com

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Tenant Name: Pare De Sufrir - Universal Church(Corporate Guarantee)

Lease Commencement: June 6, 2011

Lease Expiration: June 30, 2016

Gross Leasable Area (GLA): 4,180


Option Term: One, Two Year Option

Pro Rata Share of Project: 30%

Headquartered: Newark, New Jersey

No. of Locations: 158 (In the United States)

Web Site: www.universal.org


Tenant Name: TriPawn, Inc. dba Money Mart Pawn

Lease Commencement: May , 2012

Lease Expiration: May , 2017

Gross Leasable Area (GLA): 3,220


Option Term: One, Five Year Option

Pro Rata Share of Project: 23%

Headquartered: San Antonio, Texas

No. of Locations: 20

Web Site: www.moneymartpawn.com

TENANT & LEASE SUMMARY

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Cricket Wireless(3): 9.19% Laura's Dry Cleaning: 7.63%

Universal Church (1): 29.95%

Subway (24 hrs.): 10.39%

st China Bistro (with Drive-Thru): 19.77%

Money Mart Pawn (2): 23.07%


Comments(1) Based on current year's property taxes according to Bexar County(2) Does not include personnel/ payroll and mileage/ phone expenses that would not be incurred by future owner ($3,444)


Current Per SFReal Estate Taxes (1) $48,131 $3.45

Insurance $8,600 $0.62

CAM (2) 36,716 2.63

Management Fee (% of EGI) $9,983 $0.72

TOTAL EXPENSES $103,430 $7.41


Tenants (% OF GLA)

EXPENSES

16


Comments

(1) Expense reimbursements include a 15 percent administrative fee allowed to be reimbursed through the leases(2) Budgeted recoveries for properties increased to reflect current year's tax liability according to Bexar County


Current Per SFBase Rent

Occupied Space $251,315 $18.01

GROSS POTENTIAL RENT $251,315 $18.01

Expense Reimbursements(1) (2) 98,954 7.09

GROSS POTENTIAL INCOME $350,269 $25.09

Vacancy/Collection Allowance (% of GPI) 5% / $17,513 $1.25

EFFECTIVE GROSS INCOME $332,756 $23.84

Total Expenses $103,430 $7.41

NET OPERATING INCOME $229,326 $16.43


Gross Leasable Area (GLA) 13,958 SF

INCOME & EXPENSES

11643 SE Loop 410

San Antonio, TX 78221

Price $2,600,000

Down Payment 35% $910,000

Gross Leasable Area (GLA) 13,958

Price/SF $186.27

CAP Rate - Current 8.82%

Lot Size 2.518 AC

FIRST TRUST DEED

Loan Amount $1,690,000

Loan Type Proposed New

Interest Rate 5.25%

Amortization 25 Years

Loan to Value 65%

Annualized Operating Data

Income CurrentBase Rent

Occupied Space $251,315

Gross Potential Rent $251,315

Expense Reimbursements(1) (2) $98,954

Gross Potential Income $350,269

Vacancy/Collection Allowance 5% / $17,513

Effective Gross Income $332,756

Total Expenses $103,430

Net Operating Income $229,326

Debt Service $121,527

Debt Coverage Ratio 1.89

Net Cash Flow After Debt Service 11.85% / $107,798

Principal Reduction $33,603

Total Return 15.54% / $141,402

17

Location


Financing


ExpensesReal Estate Taxes (1) $48,131

Insurance $8,600

CAM (2) 36,716

Management Fee (% of EGI) 3% / $9,983

TOTAL EXPENSES $103,430

EXPENSES/SF $7.41


Loan information is time sensitive and subject tochange. Contact your local Marcus & Millichap CapitalCorporation representative.

FINANCIAL OVERVIEW

SAN ANTONIO, TX

MARKET OVERVIEW

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MARKET OVERVIEWEspada Shopping CenterSAN ANTONIO, TX


EAGLE FORD SHALE

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NEW TEXAS A&M UNIVERSITY CAMPUS

The Future

Ground was broken for the first building of the permanent campus in May 2010. Built to LEED Silver Standards, the first building opened in the Fall 2011. It will house the library, bookstore, student services offices, classrooms and labs, faculty and administrative offices, and food services.

More Than 4,000 Students in its First full Academic Year (2011- 2012) and The University Education Master Plan projects an enrollment of 25,000 students by the year 2025.

Economic Impact

State university system studies indicate that Texas A&M University-San Antonio will generate increased revenue and jobs for the local economy.

Graduates of the University will enter the workforce with a higher level of education.

The University will increase the percentage of workforce with higher education in the local economy.

Verano Land Group is developing the land surrounding the University according to “town/gown” style principle, bringing additional retail, housing and dining options to the South Side of San Antonio.

San Antonio, the seventh largest city in the U.S. with a population of over 2,000,000, was the only major city with only one public institution of higher education. A&M-San Antonio is now providing higher education opportunities to 32 counties in the surrounding South Texas region.

21



MISSION ESPADA

Located near several of the famous Spanish Missions in South San Antonio, the Espada North Shopping Center was named after the enchanting Mission Espada located along the San Antonio River.

Founded as San Franciso de Los Tejas in 1690, the oldest of the East Texas missions was moved to the San Antonio River in 1731 and renamed San Francisco de La Espada. The southernmost of the San Antonio chain of missions, Mission Espada appears almost as remote today as it did in the mid-1700’s.

Franciscan missionaries sought to make life within mission communities closely resemble that of Spanish villages and Spanish culture. In order to become Spanish citizens and productive inhabitants, Native Americans learned vocational skills. As plows, farm implements, and gear for horses, oxen, and mules fell into disrepair, blacksmithing skills soon became indispensable. Weaving skills were needed to help clothe the inhabitants. As buildings became more elaborate, mission occupants learned masonry and carpentry skills under the direction of craftsmen contracted by the missionaries.

After secularization, these vocational skills proved beneficial to post-colonial growth of San Antonio. The legacy of these Native American artisans is still evident throughout the city of San Antonio today.

22


MARKET OVERVIEW

MISSION REACH RIVERWALK EXPANSION


The Mission Reach Ecosystem Restoration and Recreation Project is transforming an eight mile stretch of the San Antonio River into a quality riparian woodland ecosystem.

This unique project restores riverine features and riparian woodlands, reintroduces native plants, enhances aquatic habitat, and reconnects cultural

Funding ($245.7 Million Project)

Bexar County ($176.6 million)

the City of San Antonio ($6.5 million);

USACE ($51.9 million)

the San Antonio River Foundation

Aquatic Habitat Restoration

Eight miles of river length

113 acres of aquatic habitat

Riffles, runs & pools sequences

13 acres of embayments

Recreational Elements

ver 15 miles of trails

Eight street connections

89 benches, 137 picnic tables, five overlooks with shade structures, nine water edge landings, six foot bridges

Riparian Woodland Habitat Restoration

334 acres of riparian woodland habitat restored

20,000+ young trees & shrubs

39 native tree & shrub species

23


Market Highlights

Strong population growth

■ San Antonio’s population is projected to

increase more than 10 percent over the next

Robust job creation

■ Job growth in San Antonio is expected to

average 3.5 percent per year through 2016.

Low cost of living

■ San Antonio residents enjoy a low cost of

living and no state personal income taxes.

Geography

The San Antonio MSA is located in the southern portion of central Texas, with the Edwards

Plateau to the northwest and the Gulf Coastal Plains to the southeast. The metro covers 412

square miles straddling the Interstate 35 corridor, one of the fastest growing areas in the state.


San Antonio MSA

SAN ANTONIO

24

MARKET OVERVIEW

MetroThe San Antonio MSA covers eight

counties—Bandera, Atascosa, Kendall, Comal,

Bexar, Guadalupe, Medina and Wilson—and

contains more than 2.2 million inhabitants. Six

incorporated cities and towns have populations

greater than 20,000. San Antonio is the largest,


Largest Cities: San Antonio MSA

Infrastructure

San Antonio serves as a major gateway between

the United States and Mexico. Situated only 145

miles from Laredo, San Antonio is an easy drive

along Interstate 35 from the border. The area is

further enhanced by a transportation network that

provides a myriad of shipping options to domestic

and international businesses.

Also bolstering San Antonio’s trade is the air

cargo component of the international airport,

which consists of two Foreign Trade Zones. Air

Cargo East features 104,000 square feet of

warehouse space and 1.1 million square feet of

aircraft apron. Air Cargo West provides 65,300

square feet of warehouse space and 248,140

square feet of aircraft apron to attract companies.

The Port of San Antonio is a 1,900-acre

aerospace and industrial complex, as well as an

international logistics platform, located at the site

of the former Kelly Air Force Base. The entire site

is covered by a General Purpose Foreign Trade


Airports

■ San Antonio International Airport■ Kelly Field

Major roadways

■ Interstates 10, 35, 37 and 410■ U.S. Highways 281 and 90■ State Highway 151 and Loop 1604

Rail■ Freight - BNSF, Union Pacific■ Passenger - Amtrak

Port■ Port of San Antonio

The San Antonio MSA is:

■ 75 miles from Austin■ 145 miles from Laredo■ 190 miles from Houston■ 250 miles from Dallas

2011 EstimateSources: Marcus & Millichap Research Services, AGS

SAN ANTONIO

San Antonio 1,332,000

New Braunfels 46,000

Schertz 30,500

Seguin 23,500

Canyon Lake 22,000

Timberwood Park 21,600

25


Economy

San Antonio’s economy is anchored by three

industries: healthcare, tourism and national

defense. Despite the importance of these

sectors, San Antonio continues to make great

strides in diversifying its economic base,

resulting in one of the nation's most abbreviated

down cycles during the last recession. Oil and

gas extraction from Eagle Ford Shale will likely

be a boon to the South West Texas economy in

the years ahead. The energy sector is

becoming more prominent with expansions at

NuStar Energy and Tesoro.

San Antonio is the clear leader in Texas when it

comes to benefiting from military spending, as

Fort Sam Houston, Lackland Air Force Base,

Randolph Air Force Base, Camp Bullis and

others are located in the MSA.

Education and healthcare play vital roles in the

local economy. An important component of the

healthcare industry is South Texas Medical

Center, a conglomerate of hospitals, clinics, and

research and higher-education facilities. The

center employs thousands of workers and is

directly responsible for the area’s large

biomedical industry.

As the most-visited city in Texas, San Antonio's

travel and tourism industry remains a key


SAN ANTONIO

26


Labor

The San Antonio MSA attracts businesses seeking to take advantage of lower costs of living and

doing business, which will continue to drive strong population gains over the long term. The

expanded infrastructure needed to meet this growth will restore employment in the construction

industry; the sector will expand at an annual average rate of 6 percent through 2016.

The largest job sector in the local economy is government, supported by the military. Overall, more

than 159,000 people, or 19 percent of the labor force, is employed in this segment. The second

largest industry, trade, transportation and utilities, accounts for 17 percent of all jobs in the metro.

Education and health services companies employ the third largest share of San Antonio workers,

with its standing heavily influenced by the South Texas Medical Center -- the largest medical

research and care provider in southern Texas. The education and health services sector is forecast

to post 3.9 percent annual job creation over the next five years.

The leisure and hospitality sector plays a crucial role, employing more than 100,000 residents.

Tourism in San Antonio is related not only to the U.S. economy but also to the Mexican economy.

San Antonio is the only non-border town in the United States to have such a correlation. Substantial

employment increases of 5 percent annually are projected for the industry through 2016.


SAN ANTONIO

27


Major Employers

Employers

A strong, diverse private sector fosters the San

Antonio economy. Major corporate headquarters

in San Antonio include five Fortune 500

companies. The largest of these, the United

Service Automobile Association, or USAA, leads

the financial services segment that also includes

Wells Fargo and JPMorgan Chase.

The MSA is home to one of the largest military

concentrations in the nation. The defense

industry in San Antonio employs over 89,000 and

provides a $5.25 billion impact to the city's

economy, helping to make government the

largest employment sector.

San Antonio is receiving greater interest from

companies that manufacture items too large to

affordably ship from overseas. As a result, the

local manufacturing base is forecast to grow by

1.1 through 2016. Helping to drive these gains is

Toyota Motor Manufacturing Texas, which began

building Tundra trucks in 2006 and now hires

thousands of workers.

The healthcare industry rounds out the top

employers in San Antonio. The leader in both

total employment and healthcare employment is

South Texas Medical Center, which provides

several thousand jobs. Other large healthcare

employers include Baptist Health System and


South Texas Medical Center

USAA

Wells Fargo

Baptist Health System

Southwest Research Institute

Methodist Healthcare System

JPMorgan Chase

Christus Santa Rosa Healthcare

Toyota Motor Manufacturing Texas

Sea World San Antonio

SAN ANTONIO

28


Demographics

The San Antonio MSA’s population at 2.2 million

will grow at a rate triple the U.S. average over

the next five years, expanding 2.7 percent

annually. The city of San Antonio will register the

largest absolute increase, while areas such as

Schertz, located along the Interstate systems,

will lead in percentage growth.

Area residents are relatively young, with 31

percent under the age of 20, compared with just

27 percent for the nation. In addition, 11 percent

of the population are in their retirement years,

ages 65 and older, as opposed to 13 percent for

the U.S. The low median age of 34 years is also

due in large part to the area's strong military

presence, as well as its sizable student

population; the region houses 17 institutions of

higher learning.

The median household income in the San

Antonio MSA, at $48,800 per year, falls below

the U.S. median of $54,200 annually. Although

this trend is expected to continue over the next

few years, income levels should grow faster than

home values, bolstering disposable incomes.

This, in turn, will help boost retail sales.

The median home price of $150,600, which is

well below the national median of $163,700, has

afforded nearly 60 percent of households to own


SAN ANTONIO

SAN ANTONIO, TX

DEMOGRAPHIC ANALYSIS

1 Mile 3 Miles 5 Miles

1990 Population 4,428 43,566 133,829

2000 Population 4,591 44,836 136,605

2010 Population 5,111 46,341 144,950

2011 Population 5,204 47,570 148,790

2016 Population 5,686 52,866 165,455

1990 Households 1,263 12,617 39,505

2000 Households 1,363 13,409 41,735

2010 Households 1,598 14,315 45,753

2011 Households 1,640 14,809 47,352

2016 Households 1,841 16,882 54,125

2011 Average Household Size 3.11 3.18 3.10

2011 Daytime Population 1,149 15,810 43,202

1990 Median Housing Value $39,945 $39,075 $36,445

2000 Median Housing Value $47,475 $45,827 $42,005

2000 Owner Occupied Housing Units 72.01% 65.11% 60.18%

2000 Renter Occupied Housing Units 22.55% 29.57% 33.17%

2000 Vacant 5.45% 5.31% 6.65%



2011 Vacant 9.35% 8.75% 8.65%



2016 Vacant 9.71% 8.89% 8.81%

$ 0 - $14,999 12.4% 18.5% 20.9%

$ 15,000 - $24,999 15.4% 15.0% 18.4%

$ 25,000 - $34,999 16.3% 17.5% 16.2%

$ 35,000 - $49,999 21.7% 20.4% 19.4%

$ 50,000 - $74,999 19.9% 18.0% 15.6%

$ 75,000 - $99,999 8.4% 6.4% 5.7%

$100,000 - $124,999 4.3% 2.5% 2.4%

$125,000 - $149,999 1.4% 1.0% 0.7%

$150,000 - $199,999 0.2% 0.4% 0.4%

$200,000 - $249,999 0.0% 0.0% 0.0%

$250,000 + 0.0% 0.2% 0.2%

2011 Median Household Income $38,783 $34,339 $31,432

2011 Per Capita Income $13,136 $12,100 $11,562

2011 Average Household Income $40,704 $37,903 $35,124

Demographic data © 2010 by Experian/Applied Geographic Solutions.

30

DEMOGRAPHIC ANALYSISEspada Shopping CenterSAN ANTONIO, TX


DEMOGRAPHIC REPORT

Geography: 5 Miles

Population

In 2011, the population in your selected geography was 148,790 . The population has changed by 8.92% since 2000. It is estimatedthat the population in your area will be 165,455 five years from now, which represents a change of 11.20% from the current year. Thecurrent population is 49.1% male and 50.9% female. The median age of the population in your area is 31.7 , compare this to the U.S.average which is 36.9. The population density in your area is 1,896.04 people per square mile.

HouseholdsThere are currently 47,352 households in your selected geography. The number of households has changed by 13.46% since 2000. Itis estimated that the number of households in your area will be 54,125 five years from now, which represents a change of 14.31% fromthe current year. The average household size in your area is 3.10 persons.

Income

In 2011, the median household income for your selected geography is $31,432 , compare this to the U.S. average which is currently$53,620. The median household income for your area has changed by 15.30% since 2000. It is estimated that the median householdincome in your area will be $32,386 five years from now, which represents a change of 3.03% from the current year.

The current year per capita income in your area is $11,562 , compare this to the U.S. average, which is $28,713. The current yearaverage household income in your area is $35,124 , compare this to the U.S. average which is $73,458.

Race & EthnicityThe current year racial makeup of your selected area is as follows: 74.43% White, 1.99% African American, 1.04% Native Americanand 0.34% Asian/Pacific Islander. Compare these to U.S. averages which are: 72.40% White, 12.60% African American, 0.95% NativeAmerican and 4.93% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 90.03% of the current year populationin your selected area. Compare this to the U.S. average of 16.90%.

HousingThe median housing value in your area was $42,005 in 2000, compare this to the U.S. average of $110,796 for the same year. In2000, there were 26,905 owner occupied housing units in your area and there were 14,830 renter occupied housing units in your area.The median rent at the time was $365 .

Employment

In 2011, there are 43,202 employees in your selected area, this is also known as the daytime population. The 2000 Census revealedthat 43.0% of employees are employed in white-collar occupations in this geography, and 57.0% are employed in blue-collaroccupations. In 2011, unemployment in this area is 8.88% . In 2000, the median time traveled to work was 22.6 minutes.

Demographic data © 2010 by Experian/Applied Geographic Solutions.

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SUMMARY REPORT

Two-way, average daily traffic volumes.

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TRAFFIC COUNTS

Approved by the Texas Real Estate Commission for Voluntary UseTexas law requires all real estate licensees to give the following information

about brokerage services to prospective buyers, tenants, sellers and landlords.

Information About Brokerage ServicesBefore working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner’s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer’s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing 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 subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner’s agent anything the buyer would not want the owner to know because an owner’s agent must disclose to the owner 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 representation agreement. A buyer’s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer’s agent anything the owner would not want the buyer to know because a buyer’s agent must disclose to the buyer any material 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 obtain the written consent of each party to the transaction to act as an intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as anintermediary. The broker is required to treat each party honestly 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 than the asking price unless authorized inwriting to do so by the owner;(3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and(4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property. With the parties’ consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out 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. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If youhave any questions regarding the duties and responsibilities of the broker, you should resolve thosequestions before proceeding.

Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records.

Buyer, Seller, Landlord or Tenant Date

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CLOSING PAGEEspada Shopping CenterSAN ANTONIO, TX


Texas Real Estate Brokers and Salespersons are licensed and regulated by the Texas Real Estate Commission (TREC). If you have a complaint regarding a real estate licensee, you should contact TREC at P.O. Box 12188, Austin, Texas 78711-2188 or 512-465-3960.

BROKERAGE SERVICES

SAN ANTONIO, TX

OFFERING MEMORANDUM

Offices Nationwidewww.MarcusMillichap.com

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