International Plaza - Edinburg, TX

INTERNATIONAL PLAZAEDINBURG, TX

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2This 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

Offering Summary

Price $1,490,000

Pro Forma Cap Rate 11.71%

Net Operating Income $61,685

Pro Forma Net Operating Income $174,412

Price Per Sq Ft $104.56

Occupancy 100%

Year Built 1998

Gross Leasable Area 14,397 SF

Lot Size 1.56 Acres

International Plaza1510 S Sugar RoadEdinburg, TX 78539

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PRICING & FINANCIAL ANALYSIS

incOme & expenSeS current pSfprO

fOrmapSf

Base Rent - Occupied Space (100%) $102,060 $7.16 (100%) $102,060 $7.16

Base Rent - Vacant Space $0 $0.00 $85,890 $6.03

GROSS POTENTAL RENT $102,060 $7.16 $187,950 $13.19

Exp. Reimb.

Real Estate Taxes $17,556 $1.23 $33,900 $2.38

Insurance $4,595 $0.32 $16,685 $1.17

CAM $10,299 $0.72 $18,695 $1.31

Mgmt. Fee $3,348 $0.23 $13,538 $0.95

Total Exp. Reimb. $35,798 $2.51 $82,818 $5.81

GROSS POTENTIAL INCOME $137,858 $9.67 $270,768 $19.00

Vacancy Factor (economic) 0.00% $0 $0.00 5.00% ($13,538) ($0.95)

EFFECTIVE GROSS INCOME $137,858 $9.67 $257,230 $18.05

Expenses

Real Estate Taxes ($33,900) ($2.38) ($33,900) ($2.38)

Insurance ($16,685) ($1.17) ($16,685) ($1.17)

CAM ($18,695) ($1.31) ($18,695) ($1.31)

Mgmt. Fee (% of GPI) 5.00% ($6,893) ($0.48) 5.00% ($13,538) ($0.95)

Total Expenses ($76,173) ($5.35) ($82,818) ($5.81)

NET OPERATING INCOME $61,685 $174,412

expenSeS current pSf prO fOrma

pSf

Real Estate Taxes $33,900 $2.35 $33,900 $2.35

Insurance $16,685 $1.16 $16,685 $1.16

CAM $18,695 $1.30 $18,695 $1.30

Management Fee (% of GPI) 5.00% $6,893 $0.48 5.00% $13,538 $0.95

TOTAL EXPENSES $76,173 $5.35 $82,818 $5.81

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RENT ROLL

Suite tenant Sq ft% Of Sq ft

Start endannual

rentpSf

eScalatiOn date

eScalatiOn amOunt

OptiOnSleaSe

type

1512 Vacant (Blockbuster) 5,250 36.8% MTM MTM $0 $0.00 - - - NNN

1510 Karate 1,650 11.6% 12/1/2013 11/30/2018 $18,900 $11.45 12/1/2016 $11.64 - Gross

1508 Dance Studio 4,350 30.5% 8/1/2016 7/31/2017 $52,200 $12.00 - - - Gross

1507 Vacant 3,000 21.1% 12/1/2015 MTM $30,960 $10.32 - - - NNN

Occupied 14,250 100.0% $102,060

Vacant 0 0.0%

Total 14,250 100.0%

NOTE: Suite 1512 is currently occupied by Blockbuster on a month to month lease, and responsible for NNN reimbursement only

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INVESTMENT HIGHLIGHTS

• Edinburg is the #7 Fastest Growing City in the US (MSN Money) and #3 Fastest Growing City in Texas (My San Antonio)

• Priced Under Replacement Cost at Approximately $100 Per Square Foot

• Rare Value Add Opportunity – Opportunity for Double Digit Returns

• Current Rents are Significantly Below Market

• Close Proximity to UTRGV– University of Texas Rio Grande Valley – Over 22,000 Current Students

• Highly Visible End Cap Space Available - Easily Leasable

• Directly Across from Walgreens

• Established Intersection in Edinburg – Completely Surrounded with Rooftops

• Five-Mile Population Exceeds 169,904 People - 38% Increase Since 2000

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SITE PLAN

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AERIAL MAP

De La VinaElementary

School

SouthMiddle School

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LOCAL MAP

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REGIONAL MAP

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MARKET SUMMARY

McAllen is the twentieth most populous city in Texas and the largest city in Hidalgo County, Texas. It is located at the southern tip of Texas in the Rio Grande Valley and is part of the Southern United States. It is on the Rio Grande, across from the Mexican city of Reynosa, and is about 70 miles (110 km) west of South Padre Island and the Gulf of Mexico.

The 2012 estimates put the city’s population at 140,717 and the McAllen–Edinburg– Mission metropolitan area at 804,934. The Reynosa–McAllen Metropolitan Area counts a population of nearly 1.5 million.

The latter half of the 20th century saw steady growth, which accelerated during the 1980s,leading to an economic and population boom in the 1990s and 2000s. Today the McAllen,

Edinburg, Mission metropolitan area is one of the fastest growing metropolitan areas in the United States, The introduction of the maquiladora economy and the North American Free Trade Association led to a boom in international trade, cross-border commerce with Mexico, and health care.

McAllen is a regional retail destination for northeastern Mexican states. While McAllen’s total population is 20th among Texas cities, it ranks 12th in overall retail sales, and third in the state in total retail sales both per household and per capita.

MCALLEN, TX

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DEMOGRAPHIC SUMMARY

PoPulation

HouseHolds

income

Race and etHnicity

Housing

emPloyment

Geography: 5 miles

In the identified area, the current year population is 169,904. The rate of change since 2000 was 60.0%. The five-year projection for the population in the area is 183,937 representing a change of 8.3% from 2015 to 2020. Currently, the population is 48.4% male and 51.6% female. The median age in this area is 29.6, compared to the U.S. median age of 37.9.

There are currently 52,909 households in your selected georgraphy. The number of households has changed by 65.9% since 2000. It is estimated that the number of households in your area will be 57,431 five years from now, which represents a change of 8.5% from the current year. The average household size in your area is 3.18 persons.

In 2015, the median household income for your selected georgraphy is $48,097, compare this to the Entire U.S. average, which is currently $53,217. It is estimated that the median household income in your area will be $56,188 five years from now, which represents a change of 15.2% from the current year.

The current year per capita income in your area is $20,208, compare this to the Entire U.S. average, which is $28,597. The current year average household income in your area is $64,535, compare this to the Entire U.S. average, which is $74,699.

The current year racial makeup of your selected area is as follows: 85.5% White, 1.3% Black, 0.5% Native American and 2.7% Asian/Pacific Islander. Compare these to the Entire U.S. 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 87.1% of the current year population in your selected area. Compare this to the Entire U.S. average of 17.6%.

In 2015, there were 32,235 owner occupied housing units in your area and there were 20,674 renter occupied housing units in your area. Median home value in the area is $145,902.

In 2015, there are 69,834 employees in your selected area, this is also known as the daytime population. Currently, 63.8% of employees are employed in white-collar occupations in this geography, and 15.4% are employed in blue-collar occupations. In 2015, unemployment in this area is 6.0%.

Demographic data © 2015 esri

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DEMOGRAPHIC STATISTICS

traffic cOuntS

incOme 1 mile 3 mileS 5 mileS

$ 0 - $14,999 17.5% 19.4% 17.2%

$ 15,000 - $24,999 7.9% 9.5% 10.6%

$ 25,000 - $34,999 6.7% 9.8% 10.4%

$ 35,000 - $49,999 9.8% 12.7% 13.1%

$ 50,000 - $74,999 18.9% 15.9% 16.0%

$ 75,000 - $99,999 17.3% 12.6% 13.1%

$100,000 - $149,999 14.4% 13.2% 13.1%

$150,000 - $199,999 5.0% 3.8% 3.5%

$200,000 + 2.6% 3.3% 3.0%

2015 Median Household Income $58,479 $47,905 $48,097

2015 Per Capita Income $25,197 $21,165 $20,208

2015 Average Household Income $69,761 $64,874 $64,535

pOpulatiOn 1 mile 3 mileS 5 mileS

2000 Population 11,122 45,817 106,160

2010 Population 13,673 68,430 157,402

2015 Population 14,430 73,168 169,904

2020 Population 15,369 78,710 183,937

HOuSeHOldS 1 mile 3 mileS 5 mileS

2000 Households 4,714 23,058 35,589

2010 Households 5,078 29,779 49,886

2015 Households 5,406 32,360 56,209

2020 Households 5,848 35,605 62,620

2015 Average Household Size 6,884 3.02 3.18

2015 Daytime Population 2.73 30,990 69,834

2010 Owner Occupied Housing Units 2,442 12,115 30,446

2010 Renter Occupied Housing Units 2,459 9,899 18,286

2010 Vacant 382 1,995 4,454



2015 Vacant 435 1,809 4,332



2020 Vacant 500 2,016 4,850

13,450

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

International Plaza - Edinburg, TX

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