Petsense - North Richland Hills, TX

NORTH RICHLAND HILLS, TX

AUCTION TO BE HELDMAY 31 - JUNE 2, 2016

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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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2015 Vitorino Group

PRICING & FINANCIAL ANALYSIS

NOTE: Landlord is responsible for any material repairs to or replacement of the roof

Offering Summary

Net Operating Income $119,812

Year Built 1993/2015 ren.

Gross Leasable Area 8,558 SF

Lot Size 0.91 Acres

LeaSe Summary

Lease Term 10 Years

Lease Commencement 1/26/2015

Lease Expiration 1/25/2025

Remaining Term 8.75 Years

Lease Type NNN*

Roof & Structure Tenant

Increases Every 5 Years

Options 2 x 5 Year

Options to Purchase None

AnnuAlized OperAting dAtA

Year(s) Commencement Annual Increase

1-5 1/26/2015 $119,812 -

6-10 1/26/2020 $129,397 8.00%

Option 1: 11-15 1/26/2025 $142,320 9.99%

Option 2: 16-20 1/26/2030 $156,611 10.04%

net Operating incOme $119,812

PetSense5615 Rufe Snow Drive North Richland Hills, TX 76180

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TENANT INFORMATION

tenant Summary

Company Petsense

Ownership Private

Number of Locations 115+

Years In Business 10 Years

Headquarters Scottsdale, AZ

Website www.petsenseonline.com

Petsense was founded in 2005 with the goal of becoming America’s Hometown Pet Store. Petsense operates over 115 stores all across the country to make sure you can purchase quality products at an affordable price, from an employee with a smile on their face. Their mission is to operate stores that are exciting and fun, staffed with friendly, knowledgeable associates passionate about making the pet lover’s shopping a world class experience. Petsense offers quality pet products at competitive prices, made possible by purchasing direct from their vendor partners. In addition, Petsense offers a variety of professional pet services to improve the pet’s well-being. Petsense operates their business at a level of integrity beyond reproach and promote responsible pet ownership through pet adoptions, community involvement and education.

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INVESTMENT HIGHLIGHTS

• Motivated Ownership Committed to Transacting on Auction Day

• Long-Term Corporate Net Lease

• Minimal Landlord Responsibility

• Strong Corporate Tenant - Petsense has Over 115 Locations Nationwide

• Building was Totally Renovated in 2015

• Surrounding National Retailers Include Sam’s Club, Walmart, The Home Depot, Hobby Lobby, 24HR Fitness, Chick-fil-A, Starbucks, McDonald’s, Chipotle, Sonic, Wells Fargo and Many Others

• Strong Demographics - Average Household Income within 5-Mile Radius is Above the National Average

• Densely Populated Area - 280,000 People within a 5-Mile Radius - a 28% Increase Since 2000

• Traffic Counts Exceed 41,000 Vehicles Per Day Along Rufe Snow Drive

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PROPERTY PHOTOS

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AUCTION PROCEDURES

OFFERING PROCESSThe subject property is being offered subject to the limiting conditions described in this Offering Memorandum and the Confidentiality Agreement. Online live bidding for the auction will be held on May 31, 2016 thru June 2, 2016. Visit https://www.ten-x.com/commercial/details/193048823-B_181 to register for the auction.

PURCHASE AND SALE CONTRACTAdditional transaction deal points will be determined by the non-negotiable Purchase and Sale Contact provided as a part of the initial due diligence information.

DISCLAIMEROwner reserves the right, at its sole discretion, to reject any and all offers to purchase the Property and/or to terminate discussions with any prospective investors, at any time, with or without notice. Owner shall not be bound until a mutually agreed upon contract is executed by and delivered to all parties.

ONLINE AUCTIONTen-X will conduct an auction sale process on the website www.ten-x.com. Prospective bidders will execute a confidentiality agreement, and then be given access to an online archival bank of information.

Prospective bidders will be required to register with Ten-X to bid. The system will automatically total the amount necessary for deposit and total proof of funds. If you are the winning bidder, your bidder deposit may be applied toward the earnest money deposit. If you are a non-winning bidder, your bidder deposit will be refunded following the auction.

Due diligence materials will be made available to qualified prospective bidders via an electronic data room hosted by www.ten-x.com. Conduct your due diligence by visiting the secure data vault. All due diligence must be conducted prior to signing the contract.

In order to participate in the final auction, our seller will require bidders to provide proof of their liquidity in an amount of at least their anticipated maximum bid for those assets they wish to bid on. Such liquidity must

be in the form of cash, or cash equivalents, and must be available immediately without restriction. Generally, recent bank statements, brokerage account statements, or bank letters are acceptable. A line of credit statement may be acceptable only if it is already closed in place, has undrawn capacity, and may be funded immediately without bank approval. Loan pre-approval letters, term sheets, and the like, where the loan would be collateralized by the property up for auction and funded at escrow closing, are NOT acceptable. Capital call agreements, investor equity commitments, and the like, are evaluated on a case-by-case basis. The acceptance of any proof of funds documents are made at the sole and absolute discretion of Ten-X Commercial.

CLOSINGFollowing the auction, the winning bidder will be contacted by phone and email to go over specifics of the sale, including the execution of the purchase agreement and all documentation involved in the purchase. The winning bidder must be available by telephone within two hours of the sale.

More information can be found on the Ten-X website.

CONTACT INFORMATIONFor auction related questions, contact:

Chris KaneTen-XDirect – (949) [email protected]

https://www.ten-x.com/commercial/details/193048823-B_181

https://www.ten-x.com/commercial/details/193048823-B_181

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SITE PLAN

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AERIAL MAP

RichlandHigh

School

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LOCAL MAP

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REGIONAL MAP

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MARKET SUMMARY

FORT WORTH, TX

The city of Fort Worth is often referred to as “Where the West Begins.” Fort Worth is the 17th-largest city in the United States of America and the fifth-largest city in the state of Texas. Located in North Central Texas, and covers nearly 350 square miles (910 km2) in Tarrant, Denton, Parker and Wise counties. According to the 2013 census estimates, Fort Worth had a population of 792,727. The city is also home to Texas Christian University, Texas Wesleyan University, University of North Texas Health Science Center, Texas A&M University School of Law, and many multinational corporations including Bell Helicopter, Lockheed Martin, American Airlines, American Airlines Group (and subsidiaries American Airlines and Envoy Air), the John Peter Smith Hospital, Pier 1 Imports, RadioShack, the BNSF Railway, and Lockheed Martin. In 2013, Fort Worth-Arlington ranked No. 15 on Forbes’ list of the Best Places for Business and Careers.

The Fort Worth Stockyards now celebrates Fort Worth’s long tradition as a part of the cattle industry and was listed on the National Register as a historical district in 1976. The listing included 46 contributing buildings and one other contributing structure.

The Stockyards consist of mainly entertainment and shopping venues that capitalize on the “Cowtown” image of Fort Worth. Home to the famous boot making company M.L. Leddy’s which is located in the heart of the Stockyards and The Maverick Fine Western Wear and Saloon where customers “can ‘belly up’ to the bar, relax and have a cold beer while in the Stockyards; just like they did in the days of the big cattle drives”, as they shop around the store. Many bars and nightclubs (including Billy Bob’s Texas) are located in the vicinity, there is also an opry and a rodeo.

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DEMOGRAPHIC SUMMARY

Geography: 5 Miles

Demographic data © 2015 esri

PoPulation

In the identified area, the current year population is 280,856. The rate of change since 2000 was 28.4%. The five-year projection for the population in the area is 296,764 representing a change of 5.7% from 2015 to 2020. Currently, the population is 49.0% male and 51.0% female. The median age in this area is 35.7, compared to U.S. median age of 37.9.

HouseHolds There are currently 103,308 households in your selected geography. The number of households has changed by 30.0% since 2000. It is estimated that the number of households in your area will be 109,143 five years from now, which represents a change of 5.7% from the current year. The average household size in your area is 2.71 persons.

income In 2015, the median household income for your selected geography is $66,541, compare this to the Entire US average which is currently $53,217. It is estimated that the median household income in your area will be $77,362 five years from now, which represents a change of 16.3% from the current year.

The current year per capita income in your area is $30,596, compare this to the Entire US average, which is $28,597. The current year average household income in your area is $82,899, compare this to the Entire US average which is $74,699.

Race and etHnicity The current year racial makeup of your selected area is as follows: 75.3% White, 6.4% Black, 0.7% Native American and 6.1% Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 22.6% of the current year population in your selected area. Compare this to the Entire US average of 17.6%.

Housing In 2015, there were 68,111 owner occupied housing units in your area and there were 35,198 renter occupied housing units in your area. Median home value in the area is $184,962, compared to a median home value of $200,006 for the U.S.

emPloyment In 2015, there are 149,296 employees in your selected area, this is also known as the daytime population. Currently 65.8% of employees are employed in white-collar occupations in this geography, and 20.5% are employed in blue-collar occupations. In 2015, unemployment in this area is 4.1%.

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DEMOGRAPHIC STATISTICS

pOpulAtiOn 1-Mile 3-Miles 5-Miles

2000 Population 10,548 105,631 218,750

2010 Population 12,023 116,327 266,688

2015 Population 12,454 120,313 280,856

2020 Population 12,999 125,750 296,764

traffic cOuntS

HOuseHOlds 1-Mile 3-Miles 5-Miles

2000 Households 4,089 39,248 79,476

2010 Households 4,818 44,255 98,063

2015 Households 5,018 45,886 103,308

2020 Households 5,257 48,017 109,143

2015 Daytime Population 6,962 65,004 149,296

2015 Average Household Size 2.48 2.61 2.71

2010 Owner Occupied Housing Units 54.5% 58.6% 64.2%

2010 Renter Occupied Housing Units 41.0% 35.1% 29.8%

2010 Vacant 4.6% 6.3% 5.9%



2015 Vacant 3.6% 5.4% 4.7%



2020 Vacant 3.7% 5.5% 4.5%

incOMe 1-Mile 3-Miles 5-Miles

$ 0 - $14,999 6.0% 7.7% 6.8%

$ 15,000 - $24,999 9.9% 9.5% 8.0%

$ 25,000 - $34,999 9.7% 9.0% 8.4%

$ 35,000 - $49,999 16.7% 15.0% 13.3%

$ 50,000 - $74,999 21.0% 19.9% 18.3%

$ 75,000 - $99,999 17.9% 15.6% 15.6%

$100,000 - $149,999 15.5% 16.6% 18.6%

$150,000 - $199,999 1.4% 4.4% 6.6%

$200,000+ 1.9% 2.3% 4.4%

2015 Median Household Income $56,831 $58,697 $66,541

2015 Per Capita Income $27,218 $27,423 $30,596

2015 Average Household Income $67,230 $71,753 $82,899

41,808

The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Vitorino Group and it should not be made available to any other person or entity without the written consent of Vitorino Group. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Vitorino Group.

This offering memorandum has been prepared to provide summary, unverified financial and physical 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. Vitorino Group 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, PCBs or asbestos, the compliance with local, 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 offering memorandum has been obtained from sources we believe to be reliable; however, Vitorino Group has not verified, and will not verify, any of the information contained herein, nor has Vitorino Group 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. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE VITORINO GROUP AGENT FOR MORE DETAILS.

CONFIDENTIALITY AGREEMENT

Vitorino Group 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, the Vitorino Group has not and will not verify any of this information, nor has the Vitorino Group conducted any investigation regarding these matters. The Vitorino Group 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. The Vitorino Group 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 The Vitorino Group 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.

Net Lease Disclaimer

Before 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

Approved by the Texas Real Estate Commission for Voluntary Use Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

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

Information About Brokerage Services

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 an intermediary. 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:

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 you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding.

(1) shall treat all parties honestly;(2) may not disclose that the owner will accept a price less than the asking price unless authorized in writing 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.

exclusively listed

469.844.8880 | VITORINOGROUP.COM

Petsense - North Richland Hills, TX

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