Waco, Texas

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.
NON-ENDORSEMENT NOTICE
Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) 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 M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
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.

Exclusively listed by: Investment Sales:
Vice President Investments
FORT WORTH OFFICE
Tel: (817) 932-6123
Fax: (817) 380-1153
Philip.Levy@marcusmillichap.com
License: TX 522087 OFFICES NATIONWIDE www.marcusmillichap.com

Table of Contents
EXECUTIVE SUMMARY
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
Investment Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
PROPERTY DESCRIPTION
Property Details. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
Regional Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
Local Map. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
Aerial Photo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
FINANCIAL ANALYSIS
Financial Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
Tenant Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
MARKET OVERVIEW
Demographic Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
Property name

E X E C U T I V E S U M M A R Y

EXECUTIVE SUMMARY
EXECUTIVE S
HARLEY-DAVIDSON
4201 S Jack Kultgen
Waco, TX 76706
OFFERING SUMMARY
Offering Price
Cap Rate
Rentable Square Feet
Year Built
Lot Size
$6,000,000
7.00%
20,607
2003
2.56 Acres
LEASE SUMMARY
Lease Type
Roof and Structure
Lease Guarantor
Original Lease Term
Rent Commencement Date
Lease Expiration Date
Remaining Lease Term
Options
Absolute Net
Tenant Responsible
*Personal Guarantee
10 Years
At Closing
2025
10 Years
2, 5-Year Options
Increases 10%, Every Five Years
*Tenant may transfer Personal Guarantee upon a sale of the dealership to another individual with a minimum net worth of $4,000,000.
**Closing must occur after February 5, 2016.
Harley-Davidson
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
ACT ID U0000000

Harley-Davidson EXECUTIVE SUMMARY
Investment Overview
The subject property is a 20,607-square foot Harley-Davidson dealership in
Waco, Texas. This is a new 10 year, absolute net lease to be executed upon closing with two, five-year options for renewal. The lease has 10 percent rent escalations scheduled every five years. The building was constructed in 2003 and sits on 2.56 acres.
The subject property is located on Jack Kultgen Freeway (Interstate 35) in south
Waco and has excellent visibility. Traffic counts are approximately 95,000-vehicles per day. The property is directly north of Central Texas Marketplace, a 240acre mixed use development at the intersection of Interstate 35 and West Loop
340 (Highway 6). This development includes a 115-acre retail shopping center with national and regional credit retailers and restaurants including Cabela’s,
Best Buy, Office Depot, Kohl’s, Belk, Ross Dress for Less, Bed Bath & Beyond,
Marshalls, Pier 1 Imports, Old Navy, Sports Authority, Mattress Firm, Logan’s
Steakhouse, Panda Express, Panera Bread, PetCo, Payless ShoeSource, rue21,
Men’s Wearhouse, The Children’s Place, Books-A-Million and numerous others.
The area is densely populated with approximately 124,000 people within five miles.
Waco is the county seat of McLennan County. Greater Waco’s role as a metropolitan area within the surrounding rural areas of McLennan County emulates its capacity as a regional center within a seven-county region that also includes Bell, Bosque,
Coryell, Falls, Hill and Limestone counties. Interstate 35 is the major northsouth highway for Waco. It directly connects the city with Dallas (Interstate 35
East), Fort Worth (Interstate 35 West), Austin and San Antonio. State Highway
6 runs northwest-southeast and connects Waco to Bryan/College Station and
Houston. The Waco area is also home to three airports, Waco Regional Airport
(ACT), TSTC Waco Airport (CNW) and McGregor Executive Airport (PWG).
■ ■
Absolute Net Lease - No Landlord Responsibilities
■ ■
New 10 Year Lease to be Executed at Closing with Two, Five-Year Options for Renewal
■ ■
10 Percent Rent Escalations Every Five Years
■ ■
■ ■
Freeway Location off of Interstate 35 - Great Visibility
Extremely High Traffic Counts - 95,000 - Vehicles Per Day
■ ■
Located Directly North of Central Texas Marketplace, a $100M, 240-Acre
Mixed Use Development Including a 115-Acre Retail Shopping Center
Featuring National and Regional Credit Retailers and Restaurants
■ ■
■ ■
Densely Populated - Five Mile Population of 124,000 People
The Greater Waco Metropolitan Area Includes a Seven-County Region
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
ACT ID U0000000

P R O P E R T Y D E S C R I P T I O N

PROPERT Y DESCRIPTION
Property Details
THE OFFERING
Property
Property Address
Harley-Davidson
4201 S Jack Kultgen Freeway,
Waco, TX 76706
SITE DESCRIPTION
Gross Leasable Area:
Ownership:
Year Built:
Lot Size:
20,607
Fee Simple
2003
2.56 Acres
Harley-Davidson
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. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID T0000000

EXECUTIVE S
PROPERT Y DESCRIPTION
Regional Map
Harley-Davidson
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. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID T0000000

PROPERT Y DESCRIPTION
Local Map
Harley-Davidson
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. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID T0000000

EXECUTIVE S
PROPERT Y DESCRIPTION
Aerial Photo
Harley-Davidson
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. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID T0000000

F I N A N C I A L A N A L Y S I S

EXECUTIVE S
FINANCIAL ANALYSIS
Financial Overview
EXISTING FINANCING
Loan Type
OFFERING SUMMARY
Price
Down Payment
Rentable Square Feet
Price/SF
CAP Rate
Year Built
Lot Size
Type of Ownership
TENANT SUMMARY
Tenant Trade Name
Ownership
Tenant
Lease Guarantor
Lease Type
Roof and Structure
Original Lease Term
Lease Commencement Date
Rent Commencement Date
Lease Expiration Date
Remaining Lease Term
Options
Increases
Free and Clear
$6,000,000
100% / $6,000,000
20,607
$291.16
7.00%
2003
2.56 Acres
Fee Simple
Harley-Davidson
Private
Corporate Store
*Personal Guarantee
Absolute Net
Tenant Responsible
10 Years
At Closing
At Closing
2025
10 Years
2, 5-Year Options
10%, Every Five Years
Harley-Davidson
ANNUALIZED OPERATING DATA
Rent Increases
Years 1-5
Years 6-10
O1: Years 11-15
O2: Years 16-20
Base Rent ($20.38/SF)
Net Operating Income
Total Return
Annual Rent
$420,000.00
$462,000.00
$508,200.00
$559,020.00
Monthly Rent
$35,000.00
$38,500.00
$42,350.00
$46,585.00
$420,000
$420,000
7.00% / $420,000
*Tenant may transfer Personal Guarantee upon a sale of the dealership to another individual with a minimum net worth of $4,000,000.
**Closing must occur after February 5, 2016.
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. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID T0000000

FINANCIAL ANALYSIS
Tenant Overview
Property Name
Property Address
Property Type
Rentable Square Feet
Web Site
Tenant Trade Name
Ownership
Tenant
Lease Guarantor
Lease Commencement Date
Rent Commencement Date
Lease Expiration Date
Term Remaining on Lease
Lease Type
Roof and Structure
Lease Term
Increases
Options to Renew
Options to Terminate
Options to Purchase
First Right of Refusal
Harley-Davidson
Harley-Davidson
4201 S Jack Kultgen Freeway
Net Leased Auto Dealership
20,607 www.hdwaco.com
Harley-Davidson
Private
Corporate Store
Personal Guarantee
At Closing
At Closing
2025
10 Years
Absolute Net
Tenant Responsible
10 Years
10% Every Five Years
We invite you to visit us at Adam Smith’s Harley-Davidson® of Waco.
You’ll find that our staff is dedicated as a team in demonstrating the type of character and pride that will inspire you to pursue your passion for the Harley-Davidson® Experience. From New and Pre-Owned
Motorcycles Sales to Service, from Parts to MotorClothes®, and from
Riding Academy rider training to Rentals, our people are knowledgeable and friendly. They are genuinely excited about helping you make the most of your Harley-Davidson® riding experience. Adam Smith’s
Harley-Davidson® of Waco has received dealership performance Bar &
Shield Awards in three of the last four years. Harley-Davidson® Bar &
Shield Awards distinguish dealers having a track record for being the top dealers in the network.
2, 5-Year Options
No
No
No
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. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID T0000000

M A R K E T O V E R V I E W

MARKET OVERVIEW
Demographic Summary
POPULATION
2000 Population
2010 Population
2014 Population
2019 Population
1-MILE
4,519
4,882
4,978
5,129
3-MILES
40,059
41,521
42,122
43,192
5-MILES
114,711
122,926
123,972
127,434
HOUSEHOLDS
2000 Households
2010 Households
2014 Households
2019 Households
2014 Average HH Size
2014 Daytime Population
2000 Owner Occupied Housing Units
2000 Renter Occupied Housing Units
2000 Vacant
2014 Owner Occupied Housing Units
2014 Renter Occupied Housing Units
2014 Vacant
2019 Owner Occupied Housing Units
2019 Renter Occupied Housing Units
2019 Vacant
1-MILE
1,745
1,977
2,026
2,129
2.61
1,795
62.55%
34.20%
3.25%
56.60%
4.3.40%
10.06%
56.14%
43.86%
11.11%
3-MILES
40,059
41,521
42,122
43,192
2.58
26,608
43.06%
51.02%
5.91%
45.28%
54.72%
8.24%
45.32%
54.68%
8.56%
5-MILES
114,711
122,929
123,972
127,434
2.55
65,239
47.22%
46.09%
6.69%
49.37%
50.63%
7.94%
49.13%
50.87%
8.08%
INCOME
$0 - $ 14,999
$15,000 - $24,999
$25,000 - $34,999
$35,000 - $49,999
$50,000 - $74,999
$75,000 - $99,999
$100,000 - $124,999
$125,000 - $149,999
$150,000 - $200,000
$200,000 to $249,999
$250,000 +
2014 Median HH Income
2014 Per Capita Income
2014 Average HH Income
Harley-Davidson
1-MILE
22.0%
13.9%
14.9%
19.7%
15.2%
6.7%
4.6%
0.8%
0.4%
0.8%
0.8%
$34,352
$18,048
$44,355
3-MILES
27.5%
16.1%
13.2%
16.2%
14.6%
6.1%
3.6%
0.7%
1.1%
0.4%
0.7%
$29,237
$16,034
$41,438
5-MILES
23.1%
15.0%
12.0%
15.8%
16.0%
8.0%
4.9%
1.9%
1.6%
0.7%
1.1%
$34,905
$19,180
$49,959
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. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap
ACT ID T0000000

EXECUTIVE S
MARKET OVERVIEW
Demographic Summary
Geography: 5 Miles
In 2014, the population in your selected geography is 123,972. The population has changed by 8.07% since 2000. It is estimated that the population in your area will be 127,433 five years from now, which represents a change of 2.79% from the current year. The current population is 48.15% male and 51.84% female. The median age of the population in your area is 28.9, compare this to the Entire US average which is 37.3. The population density in your area is 1,579.08 people per square mile.
There are currently 46,068 households in your selected geography. The number of households has changed by 8.40% since 2000. It is estimated that the number of households in your area will be 47,706 five years from now, which represents a change of 3.55% from the current year. The average household size in your area is 2.54 persons.
In 2014, the median household income for your selected geography is
$34,905, compare this to the $Entire US average which is currently $51,972.
The median household income for your area has changed by 17.62% since
2000. It is estimated that the median household income in your area will be
$40,530 five years from now, which represents a change of 16.11% from the current year.
The current year per capita income in your area is $19,180, compare this to the $Entire US average, which is $28,599. The current year average household income in your area is $49,958, compare this to the $Entire US average which is $74,533.
Harley-Davidson
The current year per capita income in your area is $24,018, compare this to the U.S. average, which is $28,713. The current year average household income in your area is $61,103, compare this to the U.S. average which is
$73,458.
The current year racial makeup of your selected area is as follows: 61.54%
White, 17.92% Black, 0.06% Native American and 2.14% 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 31.55% of the current year population in your selected area. Compare this to the Entire US% average of 17.13%.
In 2000, there were 21,504 owner occupied housing units in your area and there were 20,991 renter occupied housing units in your area. The median rent at the time was $418.
In 2014, there are 65,239 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 57.11% of employees are employed in white-collar occupations in this geography, and
42.90% are employed in blue-collar occupations. In 2014, unemployment in this area is 6.67%. In 2000, the average time traveled to work was 17.6 minutes.
Demographic data © 2015 by Experian/Applied Geographic Solutions.
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. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ACT ID T0000000

Exclusively listed by: Investment Sales:
Vice President Investments
Tel: (817) 932-6123
Fax: (817) 380-1153 plevy@marcusmillichap.com
OFFICES NATIONWIDE www.marcusmillichap.com