Valvoline Ground Lease, Katy, Texas

Investment Highlights

• New 15 Year Absolute NNN Ground Lease – Stable Cash Flow Asset – Zero Landlord Responsibilities – Three (5-Year) Options to Renew
• 10% Rent Increases Every 5 Years Throughout the Initial Term and Option Periods, Providing a Strong Hedge Against Inflation
• Corporately Guaranteed Lease by Valvoline – Brand New 3-Bay Building Prototype, the First to Open in the Houston MSA
• Valvoline Has Been Designated an “Essential Business” by the Department of Homeland Security and Has Remained Open Throughout the Pandemic
• High Traffic Location –Over 226,800 Vehicles Per Day on Interstate-10, the Largest Contiguous Highway in the United States, Spanning from California to Florida – Plus an Additional 82,368 on Nearby Grand Pkwy (TX-99)
• Strategically Positioned in Katy Grand Crossing, a Mixed-Use Retail Power Center Anchored by Costco Wholesale & Multiple Apartment Complexes with a Combined 1,233 Units
• Densely Populated Location with Excellent Demographics – Over 71,300 People in a 5-Mile Radius with Average Household Income Exceeding $121,500
• Tremendous Recent Growth – Over 169% Population Growth in a 5-Mile Radius Since the 2000 Census – Continued Estimated Growth Potential Exceeding an Additional 17% by 2026
• Strategically Located in an Extremely Strong Trade Area Containing Over 19.8 Million Square Feet of Retail & Restaurant and Almost 20 Million Square Feet of Industrial & Office Space within a 5-Mile Radius of the Property
• High Daytime Population with More Than 71,300 Employees in a 5-Mile Radius – Near Many Major Businesses Including the Academy Sports & Outdoors Corporate Office and the Geico Houston Headquarters
• Situated Approximately 1.3 Miles from the University of Houston-Victoria at Katy with Over 10,000 Students & Faculty Members
• Within a 5-Mile Radius of 34 Primary & Private Schools with 37,467 Combined Students – Katy ISD is Projected to Grow to More Than 90,000 Students in the Next 7 Years
• Less Than 5 Miles from the 58-Bed Houston Methodist Continuing Care Hospital with Over $126.9 Million Total Patient Revenue in 2020 and a Staff of More Than 1,450 Healthcare Professionals
• Texas is an Income Tax Free State with a Strong Economy and Growing Population, Providing an Ideal Location for a 1031 Exchange Asset