S e r v i c e K i n g , H o u s t o n T X | 1

Service king 4 5 4 5 S S a m H o u s t o n P k w y E | H o u s t o n , T X

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

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S e r v i c e K i n g , H o u s t o n T X | 3

e x c l u s i v e ly l i s t e d b yB R A D E N C R O C K E T TASSOCIATE VP & DIRECTOR

Braden.Crockett@matthews.comDIR (214) 692-2040MOB (714) 345-6206LIC # 01946071 (CA)

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E X E C U T I V E S U M M A RY

f i n a n c i a l O V E R V I E W

a r e a O V E R V I E W

t e n a n t o v e r v i e w

K Y L E M AT T H E W SBROKER OF RECORD

LIC # 678067

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PROPERTY DETAILS• Almost 19 Years remaining on current lease with Service King

• Offered at an attractive 5.75% Cap rate with an average cap rate of 6.72% over the initial term

• Low Price Point for Collision Center only $2,956,522

• Absolute NNN Lease - No Landlord Responsibilities

• 10% Increases in every 5th Lease Year and 1.5% annually each of the 4 - 5 Year Options

• Property was built in 2006

• Service King is currently in the process of doubling their square footage to accommodate a high volume of business

• Service King purchased this location from Frontier Collision, a smaller, private operator due to its strategic location and strong performance in 2015

• Service King is currently in the process of obtaining permits for a new 15,120 addition that will expand the building size. This is to be paid for by Service King and ownership will revert to Landlord at expiration of the lease

LOCATION• Strategically Located off of Sam Houston Parkway

• Directly off Houston Beltway which benefits from 68,000 Cars Per Day

• This location services the Pearland and Southern Houston Markets

• Explosive Population Growth in last 5 Years - 27% Increase in the 1-Mile Radius

• High Income Market - Average Incomes above $70,000

TENANT• Service King is one of the largest Collision Repair companies in the United States with over 324 Locations in 23 Different States

• Significant Private Equity Funding - Blackstone Group LP purchased a majority controlling interest from Carlyle LP in 2014

• Service King is estimated to have over $1 Billion in annual revenue and employs more than 6,000 people

• Service King is Capitalizing on the consolidation of the rapidly growing Collision Industry

• Great Hedge Against Ecommerce

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

e x e c u t i v e s u m m a ry

S e r v i c e K i n g , H o u s t o n T X | 5

SERVICE KING 4545 S Sam Houston Pkwy E

Houston, TX 77048

Gross Leasable Area ± 12,000 SF

Lot Size ± 3.50 Acres (152,460SF)

Year Built 2006

Assessor’s Parcel Number 0410840000421

Number of Stories One

Parking ± 43 Free Surface Spaces

p r o p e r t y o v e r v i e w

S e r v i c e K i n g , H o u s t o n T X | 5

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S e r v i c e K i n g , H o u s t o n T X | 7

S e r v i c e K i n g4545 S Sam Houston Pkwy EHouston, TX 77048

List Price ................................................................................................................ $2,956,522

CAP Rate - Current .......................................................................................................... 5.75%

Gross Leasable Area ........................................................................................... ± 12,000 SF

Lot Size ................................................................................................................ ± 3.50 Acres

Year Built .............................................................................................................................2006

Annualized Operating DataMonthly Rent Annual Rent Rent/SF CAP

Year 1-5 $14,167 $170,000 $14.17 5.75%

Year 6-10 $15,583 $187,000 $15.58 6.33%

Year 11-15 $17,142 $205,700 $17.14 6.96%

Year 16-20 $18,856 $226,270 $18.86 7.65%

Option 1 $20,618 $247,413 $20.62 8.37%

Option 2 $22,211 $266,535 $22.21 9.02%

Option 3 $23,928 $287,133 $23.93 9.71%

Option 4 $25,777 $309,324 $25.78 10.46%

Tenant Summary

Tenant Trade Service King

Type of Ownership Fee Simple

Lease Guarantor Service King Paint and Body, LLC

Lease Type Absolute NNN

Roof and Structure Tenant Responsible

Original Lease Term 20 Years

Lease Commence 10/6/2015

Rent Commence 3/10/2016

Lease Expiration 3/31/2036

Term Remaining ± 18.75

Increases 10% Every 5 Years then lesser of CPI or 1.5%

Options Four (4), Five (5) Year Options

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S e r v i c e K i n g , H o u s t o n T X | 9

Property Name Service King

Parent Company Trade Name Service King Holdings, LLC

Ownership Non-Public

Revenue ± 1B

No. of Locations 324+

Headquartered Richardson, TX

Website serviceking.com/

Year Founded 2012

TENANT OVERVIEW

Service King is the largest provider of collision repair services in Texas and one of the largest independently owned and operated provider of collision repair services in the United States. They provide automotive body repair, automotive painting, hail damage repair, and glass replacement on all vehicle makes and models throughout multiple metro areas in the United States.

STRATEGY

Service King technicians are rigorously trained and certified to work with every make and model of vehicle on the road. No matter what type of car, the veteran team at Service King is up to the job. The collision repair specialists lead the industry in everything from fender repair to dent repair and everything in between. Many Service King collision repair centers are also certified to perform highly specialized repairs, such as aluminum repair and paintless dent repair.

1 0 | 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

t h e o f f e r i n g

Property Name Service King

Property Address 4545 S Sam Houston Pkwy E

Houston, TX 77048

Assessor’s Parcel Number 0410840000421

Site DescriptionNumber of stories One

Year built 2006

GLA ± 12,000

Lot Area ± 152,460 SF (3.50 Acres)

Type of Ownership Fee Simple

Oceanside Blvd ± 31,792

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S SAM HOUSTON PKWY E ±26,000 ADT

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T R A F F I C C O U N T SS Sam Houston Pkwy E ±26,000 ADT

Cullen Blvd ±15,000 ADT

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NEWBUILDING15,120 SF

EXISTINGBUILDING12,000 SF

9'X19' PARKING FOR 120 VEHICLESNEW

DETENTION POND

01SITE PLAN1" = 30'

PARKING REQUIREMENTS

PARKING STANDARD: CITY OF HOUSTON OFF-STREET PARKING ORDINANCE CODE OF ORDINANCES, CHAPTER 26 - PARKING, ARTICLE VIII - OFF-STREET PARKING AND LOADING

REQUIRED OFF-STREET PARKING: CLASS 9.B - AUTO REPAIR: 2.5 SPACES FOR EVERY 1,000 SF OF OFFICE SPACE

AND 5.0 PARKING SPACES PER 1,000 SF REPAIR SHOP

2.5 X 5 = 12.5 SPACES REQUIRED22.120 X/5 = 110.6 SPACES REQUIRED

TOTAL: 124 TOTAL PARKING SPACES

PARKING CHECK: 120 SPACES IN THE YARD8 SPACES IN THE FRONT29 SPACES IN BUILDINGS (AT DOORS ONLY)157 TOTAL SPACES > 124 REQUIRED SPACES,

THEREFOR OKAY 2 TOTAL ACCESSIBLE PARKING SPACES (TAS TABLE 208.2) 2 VAN ACCESSIBLE PARKING SPACE (TAS 208.2.4)

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STREET TREES:246 LF / 30 = 9 TREESCREDITS: NONE

PARKING LOT TREES:128 PARKING SPACES / 10 = 13 TREES

SHRUBS:9 x 10 = 90 SHRUBS REQUIRED

LANDSCAPE CALCULATIONS

s i t e p l a n

S e r v i c e K i n g , H o u s t o n T X | 1 3

The city of Houston, Texas is located in southeastern part of the state near the Gulf of Mexico. It is the most populous city in Texas and the fourth most populous city in the United States. Understandably, businesses recognize the allure of all Houston has to offer. Twenty-five companies on the Fortune 500 list call the Energy Capital of the World home. Once dominated by oil-related jobs, Houston’s economy has diversified as new, core industries join energy in the regional employment mix.

Houston, Texas

HOUSTON DEMOGRAPHICS

POPULATION 1 Mile 3 Mile 5 Mile

2022 Projection 31,476 179,693 424,354

2017 Estimate 29,649 170,320 401,557

2011 Census 27,671 159,583 375,132

2001 Census 29,806 178,555 397,507

Growth 2017 - 2022 6.16% 5.50% 5.68%

HOUSEHOLDS 3 Mile 5 Mile 10 Mile

2022 Projection 13,980 70,937 172,829

2017 Estimate 13,203 67,373 163,704

Growth 2017 - 2022 5.88% 5.29% 5.57%

INCOME 3 Mile 5 Mile 10 Mile

2017 Est. Average Household Income

$60,267 $73,478 $86,879

c i t y o u t l i n e

HOUSTON ECONOMY

HOUSTON ACCOLADES

The economy of the nation’s fourth most populous city has a broad industrial base in energy, manufacturing, aeronautics and transportation. Only New York City is home to more large public companies than Houston. The city is also home of the Texas Medical Center, the world’s largest concentration of health care and research institutions, and NASA’s Johnson Space Center, where the Mission Control Center is located. The Port of Houston ranks first in the U.S. in international waterborne tonnage handled and second in total cargo tonnage handled. Houston has many cultural institutions and exhibits, which attract more than 7 million visitors a year to the Houston Museum District.

• Houston is the No. 1 city for job creation in the U.S.• Houston is home to more Fortune 500 company headquarters than

anywhere in America except for New York• Houston rates first among the nation’s 10 most populous cities in total

acreage of parkland and third behind only San Diego and Dallas in park acreage per capita

• Houston was ranked among the top places to visit in 2015 by the Boston Globe,Travel + Leisure and Conde Nast Traveler

S e r v i c e K i n g , H o u s t o n T X | 1 51 5 | 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

Philips 66

Sysco

Conoco Philips

Enterprise Products Partners

Haliburton

Plains GP Holdings

Baker Hughes

National Oilwell Varco

Kinder Morgan

Waste Management

Occidental Petroleum

Group 1 Automotive

Huntsman

Cameron International

EOG Resources

Anadarko Petroleum

Quanta Services

CenterPoint Energy

Targa Resources

Apache

Calpine

FMC Technologies

Marathon Oil

Spectra Energy

HOUSTON FORTUNE 500 HEADQUARTERS

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Service King located at 4545 S Sam Houston Pkwy E, Houston, TX (“Property”) . I t has been prepared by Matthews Real Estate Investment Services. 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 Real Estate Investment Services. 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 Real Estate Investment Services 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 Real Estate Investment Services 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

S e r v i c e K i n g , H o u s t o n T X | 1 7

e x c l u s i v e ly l i s t e d b y

Service king 4 5 4 5 S S a m H o u s t o n P k w y E | H o u s t o n , T X

B R A D E N C R O C K E T TASSOCIATE VP & DIRECTOR

Braden.Crockett@matthews.comDIR (214) 692-2040MOB (714) 345-6206LIC # 01946071 (CA)

K Y L E M AT T H E W SBROKER OF RECORD

LIC # 678067

™

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