9919 Manchaca RoadAustin, TX 78748

Offering Memorandum

Photo ©CoStar 2019

Broker of RecordTim SpeckDistrict Manager, TexasLicense # 9002994

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Downtown Austin

Manchaca Rd.

. 31,003 CPD

W. Slaughter Ln.

. 43,079 CPD

PRICING

List Price $1,942,719.00

CAP 7.75%

Price/SF $491.44

PROPERTY DESCRIPTION

Gross Leasable Area 3,942 SF

Lot Size 0.77 Acre

Ownership Type Fee Simple

Year Built 2002

LEASE SUMMARY

Lease Type Absolute Net (NNN)

Landlord Responsibility None

Lease Term 5 Years

Lease Commencement 5/1/2002

Lease Expiration 4/30/2222

Remaining Lease Term 3 Years

Renewal Options Four 5-Year Options

Right of First Refusal None

Lease Guarantor Team Car Care, LLC

ANNUALIZED OPERATING DATA

Annual Rental Income $150,518.87

Taxes Tenant Responsibility

Insurance Tenant Responsibility

Maintenance Tenant Responsibility

Monthly Rent $12,543.24

Annual Rent / SF $38.09

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RENT SCHEDULE

5/1/2022 – 4/30/2027 (Option 1)

$165,570.76

5/1/2027 – 4/30/2032 (Option 2)

$182,127.62

5/1/2032 – 4/30/2037 (Option 3)

$200,340.62

5/1/2037 – 4/30/2042 (Option 4)

$220,347.68

Location

Located in the highly trafficked Manchaca Rd. corridor, the subject property is situated in the heart of South Austin. With a population of over 110,000 people, the area is expected to see an additional 6% growth over the next 5 years.

Retail Market

Austin's current retail occupancy rate of 96.1% is the highest in the state of Texas and one of the highest in the nation. With investors focusing on Austin's Single Tenant market to hedge against volatility, Austin's commercial real estate is among the most sought after in the United States.

Strong Franchise Guarantee

Team Car Care, LLC, formerly known as Heartland Automotive, is the largest operator and franchisee of Jiffy Lube. The franchisee operates 523 locations across 26 states and is the guarantor of the property's lease.

Lease

The subject property was a build–to-suit for Jiffy Lube. The existing absolute NNN lease has 3.1 years remaining with four 5-year options, including 10% rent increases per renewal.

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Jiffy Lube

* Forecast

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau

Overview

Austin, TX

The Austin-Round Rock metro covers about 4,225 square miles and consists of five counties in central Texas: Travis, Williamson, Hays, Caldwell and Bastrop. The population of the metro increased significantly in recent decades and now exceeds 2.1 million residents. Growth stemmed mainly from in-migration due to job gains. Travis County holds more than half of the metro’s population and is home to Austin, the capital of Texas. The 32,000-square-mile Texas Hill Country begins in the metro and stretches approximately 150 miles to the west. Austin is the largest city with a population of 928,500 people, followed by Round Rock with 115,600 residents.

• Located within a border state, the metro benefits significantly from international trade due to the North American Free Trade Agreement (NAFTA).

• The government is a significant driver in the local economy, as Austin is the state capital and home to an IRS regional processing center as well as military bases.

• The metro is a vibrant technology hub with industries that include semiconductor and related equipment manufacturing, along with computer and software development. High-tech firms with local operations include Facebook, Apple, Dropbox and Amazon.

ECONOMY

MAJOR TECHNOLOGY PRESENCE

Tech companies are drawn to one of the nation’s most educated labor pools, boosting professional and business services growth. Firms with local presence include Dell, IBM, Oracle and VMWare.

EMPLOYMENT GROWTH

The metro ranks above the nation for employment gains, with payrolls expected to exceed the U.S. growth rate during the next five years.

STRONG POPULATION GAINS

Employment opportunities will attract skilled job seekers to the region, boosting the number of residents.

METRO HIGHLIGHTS

34.4

2018MEDIAN AGE:

U.S. Median:

38.0

2.1 M

2018POPULATION:

Growth2018-2023*:

9.8%

$72,100

2018MEDIAN

HOUSEHOLD INCOME:

U.S. Median:$58,800

807 K

2018HOUSEHOLDS:

Growth2018-2023*:

11.6%

DEMOGRAPHICS

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Quality of Life

The region contains lakes, hills, trails, an eclectic arts community, theaters, museums, bookstores, a vibrant live music scene and a favorable climate. The metro is know as “The Live Music Capital of the World” and hosts the South by Southwest festival. The University of Texas has nationally ranked programs in football, basketball, baseball, swimming, volleyball, and track and field. In addition, Austin is home to the Texas Stars Hockey and the minor-league baseball team Round Rock Express. Cultural institutions include the Elisabet Ney Museum, the Austin Symphony, Ariel Dance Theatre and the O. Henry Museum, which holds many of the author’s possessions. Austin is also home to the Texas Memorial Museum, the Contemporary Austin and the Paramount Theatre.

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• The metro is expected to add nearly 208,000 people through 2023, resulting in the formation of roughly 93,500 households and generating demand for housing.

• Rising home prices contribute to a homeownership rate of 58 percent, compared with the national rate of 64 percent.

• The local population age 25 and older includes 41 percent of bachelor’s degree holders; of those residents,14 percent also have earned a graduate or professional degree.

Demographics

Economic Growth

0-4 Years7%

5-19 Years20%

20-24 Years7%

25-44 Years33%

45-64 Years23%

65+ Years10%

2017 Population by Age

1 Mile 3 Miles 5 MilesPOPULATION

2023 Projection 14,283 112,642 239,2492018 Estimate 13,753 106,162 227,5092010 Census 11,786 88,162 193,3302000 Census 7,494 66,573 151,332

INCOMEAverage $94,019 $95,397 $95,389Median $73,801 $76,912 $74,318Per Capita $37,988 $39,438 $37,905

HOUSEHOLDS2023 Projection 5,928 47,653 96,9752018 Estimate 5,553 43,839 90,3032010 Census 4,743 36,111 76,0792000 Census 2,817 24,832 55,495

HOUSING2018 $209,585 $222,327 $241,009

EMPLOYMENT2018 Daytime Population

7,878 66,860 158,411

2018 Unemployment

2.92% 2.72% 2.98%

2018 Median Time Traveled

30 30 29

RACE & ETHNICITYWhite 73.57% 75.12% 71.96%Native American 0.08% 0.08% 0.09%

African American 6.16% 4.98% 4.73%

Asian/Pacific Islander

3.88% 4.24% 4.53%

Prepared April 18, 2019

Austin, TX

1 mi3 mi5 mi

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Confidentiality & 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. MARCUS & MILLICHAP IS A SERVICE MARK OF MARCUS & MILLICHAP REAL ESTATE INVESTMENT SERVICES, INC. © 2018 MARCUS & MILLICHAP. ALL RIGHTS RESERVED

Non-Endorsement Notice

MARCUS & MILLICHAP IS NOT AFFILIATED WITH, SPONSORED BY, OR ENDORSED BY ANY COMMERCIAL TENANT OR LESSEE IDENTIFIED IN THIS MARKETING PACKAGE. THE PRESENCE OF ANY CORPORATION'S LOGO OR NAME IS NOT INTENDED TO INDICATE OR IMPLY AFFILIATION WITH, OR SPONSORSHIP OR ENDORSEMENT BY, SAID CORPORATION OF MARCUS & MILLICHAP, ITS AFFILIATES OR SUBSIDIARIES, OR ANY AGENT, PRODUCT, SERVICE, OR COMMERCIAL LISTING OF MARCUS & MILLICHAP, AND IS SOLELY INCLUDED FOR THE PURPOSE OF PROVIDING TENANT LESSEE INFORMATION ABOUT THIS LISTING TO PROSPECTIVE CUSTOMERS.ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

JIFFY LUBEAustin, TXACT ID ZAA01600146

Net-Leased Disclaimer

MARCUS & MILLICHAP HEREBY ADVISES ALL PROSPECTIVE PURCHASERS OF NET LEASED PROPERTY AS FOLLOWS:THE INFORMATION CONTAINED IN THIS MARKETING BROCHURE HAS BEEN OBTAINED FROM SOURCES WE BELIEVE TO BE RELIABLE. HOWEVER, MARCUS & MILLICHAP HAS NOT AND WILL NOT VERIFY ANY OF THIS INFORMATION, NOR HAS MARCUS & MILLICHAP CONDUCTED ANY INVESTIGATION REGARDING THESE MATTERS. MARCUS & MILLICHAP MAKES NO GUARANTEE, WARRANTY OR REPRESENTATION WHATSOEVER ABOUT THE ACCURACY OR COMPLETENESS OF ANY INFORMATION PROVIDED.AS THE BUYER OF A NET LEASED PROPERTY, IT IS THE BUYER’S RESPONSIBILITY TO INDEPENDENTLY CONFIRM THE ACCURACY AND COMPLETENESS OF ALL MATERIAL INFORMATION BEFORE COMPLETING ANY PURCHASE. THIS MARKETING BROCHURE IS NOT A SUBSTITUTE FOR YOUR THOROUGH DUE DILIGENCE INVESTIGATION OF THIS INVESTMENT OPPORTUNITY. MARCUS & MILLICHAP EXPRESSLY DENIES ANY OBLIGATION TO CONDUCT A DUE DILIGENCE EXAMINATION OF THIS PROPERTY FOR BUYER.ANY PROJECTIONS, OPINIONS, ASSUMPTIONS OR ESTIMATES USED IN THIS MARKETING BROCHURE ARE FOR EXAMPLE ONLY AND DO NOT REPRESENT THE CURRENT OR FUTURE PERFORMANCE OF THIS PROPERTY. THE VALUE OF A NET LEASED PROPERTY TO YOU DEPENDS ON FACTORS THAT SHOULD BE EVALUATED BY YOU AND YOUR TAX, FINANCIAL AND LEGAL ADVISORS. BUYER AND BUYER’S TAX, FINANCIAL, LEGAL, AND CONSTRUCTION ADVISORS SHOULD CONDUCT A CAREFUL, INDEPENDENT INVESTIGATION OF ANY NET LEASED PROPERTY TO DETERMINE TO YOUR SATISFACTION WITH THE SUITABILITY OF THE PROPERTY FOR YOUR NEEDS.LIKE ALL REAL ESTATE INVESTMENTS, THIS INVESTMENT CARRIES SIGNIFICANT RISKS. BUYER AND BUYER’S LEGAL AND FINANCIAL ADVISORS MUST REQUEST AND CAREFULLY REVIEW ALL LEGAL AND FINANCIAL DOCUMENTS RELATED TO THE PROPERTY AND TENANT. WHILE THE TENANT’S PAST PERFORMANCE AT THIS OR OTHER LOCATIONS IS AN IMPORTANT CONSIDERATION, IT IS NOT A GUARANTEE OF FUTURE SUCCESS. SIMILARLY, THE LEASE RATE FOR SOME PROPERTIES, INCLUDING NEWLY-CONSTRUCTED FACILITIES OR NEWLY-ACQUIRED LOCATIONS, MAY BE SET BASED ON A TENANT’S PROJECTED SALES WITH LITTLE OR NO RECORD OF ACTUAL PERFORMANCE, OR COMPARABLE RENTS FOR THE AREA. RETURNS ARE NOT GUARANTEED; THE TENANT AND ANY GUARANTORS MAY FAIL TO PAY THE LEASE RENT OR PROPERTY TAXES, OR MAY FAIL TO COMPLY WITH OTHER MATERIAL TERMS OF THE LEASE; CASH FLOW MAY BE INTERRUPTED IN PART OR IN WHOLE DUE TO MARKET, ECONOMIC, ENVIRONMENTAL OR OTHER CONDITIONS. REGARDLESS OF TENANT HISTORY AND LEASE GUARANTEES, BUYER IS RESPONSIBLE FOR CONDUCTING HIS/HER OWN INVESTIGATION OF ALL MATTERS AFFECTING THE INTRINSIC VALUE OF THE PROPERTY AND THE VALUE OF ANY LONG-TERM LEASE, INCLUDING THE LIKELIHOOD OF LOCATING A REPLACEMENT TENANT IF THE CURRENT TENANT SHOULD DEFAULT OR ABANDON THE PROPERTY, AND THE LEASE TERMS THAT BUYER MAY BE ABLE TO NEGOTIATE WITH A POTENTIAL REPLACEMENT TENANT CONSIDERING THE LOCATION OF THE PROPERTY, AND BUYER’S LEGAL ABILITY TO MAKE ALTERNATE USE OF THE PROPERTY.BY ACCEPTING THIS MARKETING BROCHURE YOU AGREE TO RELEASE MARCUS & MILLICHAP REAL ESTATE INVESTMENT SERVICES AND HOLD IT HARMLESS FROM ANY KIND OF CLAIM, COST, EXPENSE, OR LIABILITY ARISING OUT OF YOUR INVESTIGATION AND/OR PURCHASE OF THIS NET LEASED PROPERTY.

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Marcus & Millichap 9002994 tim.speck@marcusmillichap.com 972-755-5200

Licensed Broker /Broker Firm Name or Primary Assumed

Business Name

License No. Email Phone

Tim A. Speck 432723 tim.speck@marcusmillichap.com 972-755-5200

Designated Broker of Firm License No. Email Phone

Craig R. Swanson 538612 craig.swanson@marcusmillichap.com 512-338-7800

Licensed Supervisor of Sales Agent/Associate License No. Email Phone

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

Buyer/Tenant/Seller/Landlord

Initials

Date

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