Spec’s Wine, Spirits & Finer FoodsNEQ Interstate 20 & S Cooper StreetArlington, Texas

4438 W Lovers LnDallas, Texas 75209

T 214.396.1810VireoRE.com

Stroud ArthurPartnerStroud@VireoRE.com214.396.1811

CONFIDENTIAL OFFERING MEMORANDUM

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Property InformationLocation3909 S Cooper StArlington, TX 76015

Building Size25,383 SF

Land Area1.91 acres

Price$5,178,132

Cap Rate6.25%

Parking95 spaces (3.7/1,000 SF)

Year Built/Renovated1994/2015

Building ExteriorBrick

RoofNew, 2015

Parking LotConcrete

The information contained herein was obtained from sources deemed reliable; however, no guarantees, warranties or representations as to the completeness or accuracy thereof.The presentation of this real estate information is subject to errors; omissions; change of price; prior sale or lease; or withdrawal without notice.

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Executive Summary

Investment Overview• 15-year corporate lease with the largest spirits retailer in Texas• Located along S Cooper St, one of the busiest north/south thoroughfares through

Arlington, Texas with approximately 46,000 CPD. • In front of The Parks at Arlington Mall which is anchored by Macy’s, Dillard’s, JCPenney,

Dick’s Sporting Goods, Sears, Barnes & Noble and AMC Theatres and attracts more than 22 million annual visitors.

• Less than 3 miles from The University of Texas at Arlington with over 41,000 students enrolled and 6 miles from AT&T Stadium, home to the Dallas Cowboys.

• Great access and visibility

Top Investor MarketArlington is located less than 15 minutes from Downtown Dallas. The Dallas-Fort Worth Metroplex (“DFW”) is the 4th largest metropolitan area in the nation, and is currently experiencing significant growth making it a mecca for real-estate investment. DFW adds another person every four minutes, according to data from the US Census Bureau. Ease of transportation and low cost of living have fueled business expansion, attracting new employers. The local economy has added jobs at one of the fastest rates in the nation, averaging more than 100,000 per year since 2012, outpacing the national economy and resetting the bar for market performance.

Prime LocationSpec’s Wine, Spirits & Finer Foods (“Property”) is conveniently located at the northeast quadrant of I-20 and S Cooper St. The Property sits along S Cooper St, one of the busiest north/south thoroughfares through the city of Arlington, Texas with approximately 46,000 cars passing the site each day. Spec’s is surrounded by heavy retail and residential, including The Parks at Arlington Mall, anchored by Macy’s, Dillards, JCPenney, Dick’s Sporting Goods, Sears, Barnes & Noble and AMC Theatres and attracting more than 22 million visitors each year.

The University of Texas at Arlington is located less than 3 miles from the Property and has over 41,000 students enrolled. Approximately 6 miles north sits AT&T Stadium, home to the Dallas Cowboys. The $1.2 Billion stadium boasts 100,000 seats and hosts various sports events and concerts throughout the year.

Demographics 1 Mile 3 Mile 5 Mile

Total Population 10,625 123,020 333,103

Daytime Population 15,985 82,271 195,962

Median HH Income $61,278 $65,746 $66,487

Median Age 35.7 35.1 34.1

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WA XA HACHIE

DESOTO

DUNCANVILLE

CLEBURNE

FORT WORTH

G RAPEVINE

CARROLLTON

FRISC OLITTLE ELM

DENTON

MCKI NNEY

WEATHER FOR D

MINERAL W ELLS

DA LLASMESQUI TE

ENNI S

DFW AIRPORT

DALLAS LOVE FIELD

PROSPER

THE C OLONY

C OPPELL

FLOWERMOUND

LEWISVILLE

ALLEN

PLANO

ROANOKE

NORTHRICHLAND

HILLSLA K E WO RTH

AZLE

BURLESON

B ENBROO K

MANSFIELD

MIDLOTHIAN

C EDAR HILL

KAUFMAN

TERRELL

FORNEY

RIC HARDSON

GRANBURY

IRVING30

30

35E20

820

35W

35W

635

75

175

121

121

288

161

360

114

12

35E

380

380

287

ROCKWALL

HEATH

GARLAND

ROW LETT

W YLI E

20

63520

205

287

67

67

80

FARMERSVI LLE

Location Map

Spec’s Wine,Spirits & Finer Foods

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Aerial

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Aerial

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Survey

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Offering Summary

Tenant Spec’s Wine, Spirits & Finer Foods

Address 3909 S Cooper St / Arlington, TX 76015

Size 25,383 SF

Lease Commencement July 1, 2015

Lease Expiration June 30, 2030

Options Four, 5-year renewal options

Lease Structure NNN (Landlord responsible for Roof & Structure)

Price $5,178,132

Terms Assumable Loan or Defeasance (see Loan Information)

Net Operating Income $323,633.28

Cap Rate 6.25%

Spec’s Wine, Spirits & Finer Foods / 9

Rent Schedule

Lease Period Per Month Annual PSF

July 1, 2015 - September 30, 2015 $0.00 $0.00 $0.00

October 1, 2015 - June 30, 2021 $26,969.44 $323,633.25 $12.75

July 1, 2021 - June 30, 2027 $29,084.69 $349,016.25 $13.75

July 1, 2027 - June 30, 2030 $31,199.94 $374,399.25 $14.75

Renewal Options Per Month Annual PSF

July 1, 2030 - June 30, 2035 $33,315.19 $399,782.25 $15.75

July 1, 2035 - June 30, 2040 $35,430.44 $425,165.25 $16.75

July 1, 2040 - June 30, 2045 $37,545.69 $450,548.25 $17.75

July 1, 2045 - June 30, 2050 $39,660.94 $475,931.25 $18.75

Spec’s Wine, Spirits & Finer Foods / 10

Loan Information

Assumption

Purchase Price $5,178,132

Loan to Assume ($2,749,578)

Equity / Down Payment $2,428,554

Current NOI $323,633.28

Annual Debt Service ($237,863.04)

Net Annual Cash Flow $85,770

Return on Equity 3.53%

Defeasance

Purchase Price $5,178,132

Defeasance ($378,000)

Total Cost $5,556,132

Current NOI $323,633.28

Free & Clear Return 5.82%

Loan Information

Original Loan Amount $3,100,000

Current Loan Amount $2,749,578

Interest Rate 4.625%

Monthly P&I $19,821.92

Amortization 20 years

Term 20 years

Maturity June 1, 2035

Spec’s Wine, Spirits & Finer Foods / 11

Lease Abstract

Tenant Spec’s Wine, Spirits & Finer Foods

Square Footage (Building) 25,383 SF

Land Area 1.9193 acres

Specific Use

For the operation of a full service liquor store for the sale of liquor, beer and wine for off premises consumption and for the incidental sale of (i) chips, crackers, cheese, soft drinks (including bottled water) and other food items commonly in Spec’s stores, (ii) cigarettes and cigars, (iii) wine and cheese gift baskets, (iv) bar accessories and supplies subject to the provisions of Article 4 (the “Use”). Landlord agrees not to impose any private use restrictions upon Tenant which prevent Tenant from operating the Use within the Leased Premises. Tenant’s use of the Leased Premises for the operation of the Use shall be subject to and must comply with all applicable laws at all times.

Documentation Lease dated August 2014

Rent Commencement Date July 1, 2015

Lease Expiration Date June 30, 2030

Base Rent Period Per Month Annual PSF

July 1, 2015 - September 30, 2015 $0.00 $0.00 $0.00

October 1, 2015 - June 30, 2021 $26,969.44 $323,633.25 $12.75

July 1, 2021 - June 30, 2027 $29,084.69 $349,016.25 $13.75

July 1, 2027 - June 30, 2030 $31,199.94 $374,399.25 $14.75

Remaining Renewal Options

July 1, 2030 - June 30, 2035 $33,315.19 $399,782.25 $15.75

July 1, 2035 - June 30, 2040 $35,430.44 $425,165.25 $16.75

July 1, 2040 - June 30, 2045 $37,545.69 $450,548.25 $17.75

July 1, 2045 - June 30, 2050 $39,660.94 $475,931.25 $18.75

Renewal Option(s) Four, 5-year renewal options remaining.

CAM Payments Tenant shall pay CAM expenses directly.

Insurance Payments Tenant shall pay Insurance expenses directly.

RE Tax Payments Tenant shall pay Real Estate Tax expenses directly.

Utilities Tenant shall pay for all utilities furnished to the premises.

Landlord Maintenance Roof & Structure

Spec’s Wine, Spirits & Finer Foods / 12

Tenant Profile

Spec’s Wine, Spirits & Finer FoodsOwned and operated by the same Houston family since 1962, Spec’s Wine, Spirits & Finer Foods is a true destination shopping experience. Spec and Carolynn Jackson began their venture into the liquor business with a small store around 1,000 SF selling pints and half pints of liquor. Over the years they diligently worked to open more locations and expanded to include larger bottles of liquor, beer and wine. Spec’s entered the food business with po-boy sandwiches, crackers and cheese in the late 1980’s and haven’t stopped growing since. Spec’s now has over 100 locations across Texas and is the state’s largest chain

of liquor stores.

Size25,383 SF

Stock SymbolPrivate

Locations100+

WebsiteSpecsOnline.com

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