(NEED TO UPDATE)

OFFERING MEMORANDUM

Corporate Guaranteed Lease

HELOTES TEXAS

REPRESENTATIVE PHOTO

CONFIDENTIALITY AND DISCLAIMERThe 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 NOTICEMarcus & 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 w, 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 YOURMARCUS & MILLICHAP AGENT FOR MORE DETAILS.

Investment Summary .........................................1Investment Highlights.........................................2Aerial Map .........................................................5Tenant Summary ................................................6Site Plan ............................................................8Area Map ...........................................................9 Location Overview ............................................10Location Highlights ...........................................11Demographics ..................................................12

285

285

285

285

285A

380

380

54

54

56

6060

62

64

64

70

70

70

82

84

84

84

85

169

177

177

177

177

183

183

183

183

259

270

270

270

270

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277

281

281

283

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287

412412

412

56

59

59

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62

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69

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75

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81

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81

160

60 65

71

270

412

64

67

70

71

71

79

82

171

190

71

71

80

84

175

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180180

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183

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190

190190

190

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259

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271

277

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285

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87

90

90

90

90

90

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96

96

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Toll

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Toll

Toll

Toll

Toll

Toll

10

25

25

25

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44

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30

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10

10

10

10

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20

20 20

20

27

30

35

35

35

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37

40

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Palo Alto Battlefield NHS

Padre Island NS

Big Bend NP

Amistad NRA

Lyndon B. Johnson NHP

Big Thicket N PRES

GuadalupeMountains NP

Carlsbad Caverns NP

White Sands NM

Chickasaw NRA Hot Springs NP

Petroglyph NM

Alibates Flint Quarries NM

Lake Meredith NRA Bandelier NM

Buffalo NR

Pea Ridge NMP

North Fork

Brady Creek

Pedernales River

Kiamichi R.

Illinois River

Wolf Creek

Mora R.

Ute Creek

Gallinas R.

Frio River

Medina River

San Antonio R.

Nueces R.

RIO GRANDE W. Nueces R.Rio Conchos

RIO G

RANDE

Angelina R.

Neches R.Trinity River

Sobi

ne R

.

Little River

Sulphur R.

Concho R.

Neches R.

Trinity R.

Colorado R.

Brozas R.

Llano R.

Salt Fork

RED RIVERRed R.

Brazos River

Clear Fork

Pecos R.

Brazos R.

Pecos River

Pecos River

RIO GRANDE

Salt Fork

Cimarron R.

Cimarron R.

Washita River

Candadian R

Beaver R.

Corrizo Creek

Canadian R.

CANADIAN RIVER

Canadian R.

N. Fork Red R.

Pecos R.

Rio

Gra

nde

Hubbard Creek L.

L. Kemp

Red Bluff Reservoir

Abiquiu Res.

L. Altus

L. Arrowhead

Atoka L.

Broken Bow L.

L. Buchanan

Canton L.

Cedar Creek Res.

L. Conroe

L. Corpus Christi

Cross L.

E V Spence Res.

Eagle Mountain L.

Fort Cobb Res.

Fort Gibson L.

L. Houston

L. Hudson

L. J B Thomas

Kaw L.

Keystone L.

Lavon L.

L. Meredith

Millwood L.

Navarro Mills L.

Nimrod L.

Oologah L.

Pine Creek L.

L. Stamford

L. Sumner

L. Tawakoni

Tenkiller Ferry L.

L. Thunderbird

Twin Buttes Res.

Ute Res.

Calcasieu L.

Amistad Res.

Beaver L.

Conchas L.

Falcon Res.

Lake of the Cherokees

L. Livingston

Table Rock L.

L. Texoma

L. Whitney

L. Dardanelle

Eufaula Res.

LA

GU

NA

MA

DR

E

WESTBAY

MATAGORDABAY

SAN ANTONIOBAY

G U L F

O F

M E X I C O

B E R N A L I L L O

C H AV E S

C O L F A X

C U R R Y

D E B A C A

D O N A A N A

E D D Y

G U A D A L U P E

H A R D I N G

L E A

L I N C O L N

L O S A L A M O S

M O R A

O T E R O

Q U AY

R I O A R R I B A

R O O S E V E LT

S A N D O VA L

S A N M I G U E LS A N TA F E

S I E R R A

S O C O R R O

TA O S

T O R R A N C E

U N I O N

VA L E N C I A

A D A I R

A L F A L F A

AT O K A

B E AV E R

B E C K H A M

B L A I N E

B R YA N

C A D D O

C A N A D I A N

C A R T E R

C H E R O K E E

C H O C TA W

C I M A R R O N

C L E V E L A N D

C O A L

C O M A N C H E

C O T T O N

C R A I G

C R E E K

C U S T E R

D E L A W A R E

D E W E Y

E L L I S

G A R F I E L D

G A R V I N

G R A D Y

G R A N T

G R E E R

H A R M O N

H A R P E R

H A S K E L L

H U G H E S

J A C K S O N

J E F F E R S O N

J O H N S T O N

K AY

K I N G F I S H E R

K I O W A

L AT I M E R

L E F L O R E

L I N C O L N

L O G A N

L O V E

M C C L A I N

M C C U R TA I N

M A C I N T O S H

M A J O R

M A R S H A L L

M AY E S

M U R R AY

M U S K O G E E

N O B L E

N O W ATA

O K F U S K E EO K L A H O M A

O K M U L G E E

O S A G E

O T TA W A

PA W N E E

PAY N E

P I T T S B U R G

P O N T O T O C

P O T TA W AT O M I E

P U S H M ATA H A

R O G E R M I L L S

R O G E R S

S E M I N O L E

S E Q U O YA H

S T E P H E N S

T E X A S

T I L L M A N

T U L S A W A G O N E R

W A S H I N G T O N

W A S H I TA

W O O D S

W O O D W A R D

B A R R Y

C H R I S T I A NL A W R E N C E

M C D O N A L D

N E W T O N

S T O N E

TA N E Y

B E N T O NB O O N EC A R R O L L

C L A R K

C O L U M B I A

C R A W F O R D F R A N K L I N

G A R L A N D

H E M P S T E A D

H O T S P R I N G

H O W A R D

J O H N S O N

L A F AY E T T E

L I T T L E R I V E R

L O G A N

M A D I S O N

M I L L E R

M O N T G O M E R Y

N E VA D A

N E W T O N

P E R R Y

P I K E

P O L K

P O P E

S C O T T

S E B A S T I A N

S E V I E R

W A S H I N G T O N

Y E L L

B E A U R E G A R D

B I E N V I L L E

B O S S I E R

C A D D O

C A L C A S I E U

C A M E R O N

C L A I B O R N E

D E S O T O

N AT C H I T O C H E S

R E DR I V E R

S A B I N E

V E R N O N

W E B S T E R

A N D E R S O N

A N D R E W S

A N G E L I N A

A R A N S A S

A R C H E R

A R M S T R O N G

ATA S C O S A

A U S T I N

B A I L E Y

B A N D E R A

B A S T R O P

B AY L O R

B E E

B E L L

B E X A R

B L A N C O

B O R D E N

B O S Q U E

B O W I E

B R A Z O R I A

B R A Z O S

B R E W S T E R

B R I S C O E

B R O O K S

B R O W N

B U R L E S O N

B U R N E T

C A L D W E L L

C A L H O U N

C A L L A H A N

C A M E R O N

C A M P

C A R S O N

C A S S

C A S T R O

C H A M B E R S

C H E R O K E E

C H I L D R E S S

C L AY

C O C H R A N

C O K E

C O L E M A N

C O L L I N

C O L L I N G S W O R T H

C O L O R A D O

C O M A L

C O M A N C H E

C O N C H O

C O O K E

C O R Y E L L

C O T T L E

C R A N E

C R O C K E T T

C R O S B Y

C U L B E R S O N

D A L L A M

D A L L A S

D A W S O N

D E A F S M I T H

D E LTA

D E N T O N

D E W I T T

D I C K E N S

D I M M I T

D O N L E Y

D U VA L

E A S T L A N D

E C T O R

E D W A R D S

E L L I S

E L PA S O

E R AT H

F A L L S

F A N N I N

F AY E T T E

F I S H E R

F L O Y D

F O A R D

F O R T B E N D

F R A N K L I N

F R E E S T O N E

F R I O

G A I N E S

G A LV E S T O N

G A R Z A

G I L L E S P I E

G L A S S C O C K

G O L I A D

G O N Z A L E S

G R AY

G R AY S O N

G R E G G

G R I M E S

G U A D A L U P E

H A L E

H A L L

H A M I LT O N

H A N S F O R D

H A R D E M A N

H A R D I N

H A R R I S

H A R R I S O N

H A R T L E Y

H A S K E L L

H AY S

H E M P H I L L

H E N D E R S O N

H I D A L G O

H I L L

H O C K L E Y

H O O D

H O P K I N S

H O U S T O N

H O W A R D

H U D S P E T H

H U N T

H U T C H I N S O N

I R I O N

J A C K

J A C K S O N

J A S P E R

J E F F D AV I S

J E F F E R S O N

J I M H O G G

J I MW E L L S

J O H N S O N

J O N E S

K A R N E S

K A U F M A N

K E N D A L L

K E N E D Y

K E N T

K E R R

K I M B L E

K I N G

K I N N E Y

K L E B E R G

K N O X

L A M A R

L A M B

L A M PA S A S

L A S A L L E

L AVA C A

L E E

L E O N

L I B E R T Y

L I M E S T O N E

L I P S C O M B

L I V E O A K

L L A N O

L O V I N G

L U B B O C K

LY N N

M C C U L L O C H

M C L E N N A N

M C M U L L E N

M A D I S O N

M A R I O N

M A R T I N

M A S O N

M ATA G O R D A

M AV E R I C K

M E D I N A

M E N A R D

M I D L A N D

M I L A M

M I L L S

M I T C H E L L

M O N TA G U E

M O N T G O M E R Y

M O O R E

M O R R I S

M O T L E Y

N A C O G D O C H E S

N AVA R R O

N E W T O N

N O L A N

N U E C E S

O C H I LT R E E

O L D H A M

O R A N G E

PA L O P I N T O

PA N O L A

PA R K E R

PA R M E R

P E C O S P O L K

P O T T E R

P R E S I D I O

R A I N S

R A N D A L L

R E A G A N

R E A L

R E D R I V E R

R E E V E S

R E F U G I O

R O B E R T S

R O B E R T S O N

R O C K W A L L

R U N N E L S

R U S K

S A B I N E

S A NA U G U S T I N E

S A NJ A C I N T O

S A N PAT R I C I O

S A N S A B A

S C H L E I C H E R

S C U R R Y S H A C K L E F O R D

S H E L B Y

S H E R M A N

S M I T H

S O M E R V E L L

S TA R R

S T E P H E N S

S T E R L I N G

S T O N E W A L L

S U T T O N

S W I S H E R

TA R R A N T

TAY L O R

T E R R E L L

T E R R Y

T H R O C K M O R T O N

T I T U S

T O MG R E E N

T R AV I S

T R I N I T Y

T Y L E R

U P S H U R

U P T O N

U VA L D E

VA L V E R D E

VA NZ A N D T

V I C T O R I A

W A L K E R

W A L L E R

W A R D

W A S H I N G T O N

W E B B

W H A R T O N

W H E E L E R

W I C H I TAW I L B A R G E R

W I L L A C Y

W I L L I A M S O N

W I L S O N

W I N K L E R

W I S E

W O O D

Y O A K U M

Y O U N G

Z A PATA

Z AVA L A

Anthony

Bernalillo

Bosque Farms

Clayton

Corrales

Eunice

Jal

Ruidoso

Santa Rosa

Santo Domingo Pueblo

Taos

Tularosa

White Sands

Belen

Espanola

Holloman AFBLovington

Portales

Raton

Socorro

Tucumcari

White Rock

Antlers

Arkoma

Atoka

Bristow

Broken Bow

Carnegie

Chandler

Checotah

Cherokee

Cleveland

Coalgate

Eufaula

Fairview

Glenpool

Grove

Hartshorne

Heavener

Hennessey

Hobart

Hollis

HominyJay

Lindsay

Lone Grove

Mangum

Marietta

New Cordell

Newkirk

Noble

Nowata

Okemah

Pawhuska

Picher

Prague

Purcell

Sayre

Spiro

Stigler

Stilwell

Tishomingo

Tonkawa

Tuttle

Walters

Watonga

Waurika

Wynnewood

Alva

Clinton

Elk City

Frederick

Guymon

Holdenville

Hugo

Idabel

Marlow

Perry

Poteau

Sulphur

Tahlequah

Turley

Vinita

Wewoka

Branson

Cassville

MonettNeosho

Alma

Ashdown

Bella Vista

Berryville

Booneville

De Queen

Greenwood

Hot Springs Village

Nashville

Prescott

Waldron

Clarksville

Mena

Siloam Springs

Homer

Many

Vivian

Leesville

Mansfield

Springhill

Abernathy

Albany

Alvarado

Anson

Anthony

Bacliff

Ballinger

Bastrop

Bellville

Bessmay-Buna

Big Lake

Bishop

Boerne

Burnet

Caldwell

Canadian

Canton

Cedar Park

Cisco

Clarendon

Clarksville

Clifton

Clyde

Comanche

Cooper

Cotulla

Crane

Crosbyton

De Kalb

De Leon

Decatur

Devine

Dilley

Dublin

Eldorado

Elgin

Fabens

Fairfield

Floresville

Floydada

Freer

Friona

Fritch

George West

Giddings

Glen Rose

Groesbeck

Hale Center

Hallettsville

Hamilton

Haskell

Hebbronville

Henrietta

Hidalgo

Howe

Idalou

Jefferson

Junction

Karnes City

Kenedy

Kountze

Kyle

La Grange

Laughlin AFB

Lindale

Livingston

Llano

Lockney

Lone Star

Lumberton

Madisonville

Malakoff

Marble Falls

Marfa

Mason

McCamey

Memphis

Mineola

Morton

Muleshoe

Nixon

Nocona

Olney

Olton

Ozona

Paducah

Palacios

Panhandle

Post

Premont

Quanah

Ralls

Ranger

Refugio

Rockport

Rosebud

Rotan

Rusk

San Augustine

San Saba

Sanger

Schulenburg

Seagraves

Sealy

Seymour

Shamrock

Sonora

Spearman

Spring Valley

Stafford

Stamford

Stanton

Stinnett

Sweeny

Three Rivers

Tomball

TrinityVan Horn

Wake Village

Wellington

West

West Lake Hills

Wills Point

Winnie

Winnsboro

Winters

Woodville

Zapata

Alpine

Aransas Pass

Atlanta

Bellmead

Bowie

Brady

Breckenridge

Cameron

Carrizo Springs

Center

Childress

Cleveland

Coleman

Colorado City

Crockett

Crystal City

Cuero

Dalhart

Diboll

Dimmitt

Edna

Falfurrias

Fort Stockton

Gatesville

Georgetown

Gilmer

Gonzales

Graham

Hearne

Highlands

Hillsboro

Hitchcock

Iowa Park

Jasper

Kermit

Kirby

Littlefield

Live Oak

Lockhart

Luling

Marlin

Mathis

Mexia

Monahans

Navasota

Pearsall

Perryton

Pleasanton

Raymondville

Rio Grande City

San Diego

Seminole

Sinton

Tulia

WhartonYoakum

Carlsbad

Clovis

Hobbs

Las Cruces

Roswell

South Valley

Alamogordo Artesia

Las Vegas

Los Alamos

Bartlesville

Del City

EdmondMuskogee

Ponca City

Shawnee

Stillwater

Ada

Altus

Ardmore

Bethany

Chickasha

Claremore

Duncan

Durant

El Reno

Fort Sill

Guthrie

McAlester

Miami

Okmulgee

Sapulpa

Woodward

Fayetteville

Hot Springs

Arkadelphia

Hope

Magnolia

Rogers

Russellville

Springdale

Texarkana

Van Buren

De Ridder

Fort Polk South

Minden

Natchitoches

Bryan

Del Rio

Denton

Harlingen

Killeen

Kingsville

Lufkin

Nacogdoches

Paris

Sherman

Temple

Texas City

Aldine

Alice

Andrews

Athens

Beeville

Belton

Big Spring

Borger

Brenham

Brownfield

Brownwood

Burkburnett

Burleson

Canyon

Champions

Cleburne

Conroe

Copperas Cove

Corsicana

Dumas

Eagle Pass

El Campo

Ennis

Fort Bliss

Freeport

Friendswood

Gainesville

Greenville

Groves

Henderson

Hereford

Huntsville

Jacksonville

Kerrville

Kilgore

Lackland AFB

Lamesa

Lancaster

Levelland

Lewisville

McKinney

Mission

Nederland

New Braunfels

Orange

Palestine

Pampa

Pecos

Plainview

Port Lavaca

Portland

Rosenberg

Round Rock

San Benito

San Marcos

Seguin

Snyder

Stephenville

Sulphur Springs

Sweetwater

Uvalde

Vernon

Aguhta

Anahuac

Benavides

Bustamante

Cadereyta

Candela

Castanos

China

Cienega De Flores

Ciudad Camargo

Ciudad Cuauhtemoc

Ciudad Lerdo

Delicias

El Alamo

El Carmen

General Bravo

General Cepeda

General Teran

General Zuazua

Gomez Palacio

Guadalupe

Guerrero

Jimenez

Matamoros

Meoqui

Montemorelos

Morelos

Muzquiz

Nadadores

Naica

Nava

Nueva Rosita

Parras

Potrero Del Llano

Progreso

Ricardo Flores Magon

Rio Bravo

Sabinas

Sabinas Hidalgo

San Buenaventura

San Luis Del Cordero

San Pedro

San RafaelSantiago Papasquiaro

Viesca

Villa Ahumada

Villa Frontera

Villa Union

Villaldama

Zaragoza

Zaragoza

Enid

Lawton

NormanFort Smith

Lake Charles

Amarillo

Beaumont

GarlandIrving

Lubbock

Pasadena

Waco

Abilene

Baytown

Brownsville

Galveston

Grand Prairie

Laredo

Longview

McAllen

MidlandOdessa

Plano

Port Arthur

Richardson

San Angelo

Tyler

Victoria

Wichita Falls

Matamoros

Reynosa

Albuquerque

Tulsa

Shreveport

Corpus Christi

Dallas

El Paso

Fort Worth

Houston

San Antonio

Santa Fe

Oklahoma City

Austin

Chihuahua

Monterrey

Saltillo

Arkansas

Louisiana

New Mexico

Oklahoma

Missouri

TEXAS

Mexico

TABLE OF CONTENTS

REPRESENTATIVE PHOTO

O V E R V I E WPrice $1,450,000

Gross Leasable Area (GLA) 1,769 SF

Lot Size (approx.) 1.47 Acres

Net Operating Income $90,000

CAP Rate 6.21%

Year Built 2001

L E A S E A B S T R A C TLease Type NNN

Original Lease Term 20 Years

Lease Start (Estimate) 5/1/2003

Lease Expiration (Estimate) 4/30/2023

Renewal Options 2 remaining 5 yr options

Increases Percentage Rents*

Landlord Obligation None At All

12405 BANDERA ROAD, HELOTES, TX, USA

PRICE: $1,450,000 CAP: 6.21% RENT: $90,000

INVESTMENT SUMMARY

A N N U A L I Z E D O P E R AT I N G D ATA

Lease Term Annual Rent

Current Term (Option 1) $90,000

Option 2 $90,000

Option 3 $90,000

* 6.50% of gross sales over min monthly rent. Original lease was 15 yrs, but they justexercised their 1st option 3/16/2018

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INVESTMENT HIGHLIGHTSSonic has operated from this site for 15 years and just recently renewed their lease for another five years. Helotes is an affluent neighborhood about 15 miles from downtown San Antonio on the city’s northwest side. The property is just half a mile to the east of Sandra Day O’Connor High School, which is the only high school in Helotes, with a student body of over 3,200. The surrounding area has undergone significant development in recent years and is turning into one of the most desirable suburbs of San Antonio.

NNNCorporate Guaranteed

Fee-Simple LeaseHalf a Mile From Sandra Day

O’Connor High School & Kuentz Elementary School, the cities largest and only

public schools

Half a Mile From E Charles William Anderson Loop

95,000+ People In 3-Mile Area Average Household Income over $117,822 within 1-mile radius

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INVESTMENT HIGHLIGHTS t $1,450,000

t 20 year corporate guaranteed fee simple opportunity (4.4 yrs remaining on first option)

t Tenant exercised their first option indicting their desire to remain at this seasoned location

t Affluent San Antonio suburb where average household income exceeds $117,822

t Lease offers percentage rent opportunity over break even and base rent

t Strategically located adjacent to a large community high school which contributes to the units success

36,758 VPD

203,872TOTAL POPULATION WITHIN 5-MILE RADIUS

$117,822AVERAGE HOUSEHOLD INCOME WITHIN 1-MILE RADIUS

- BANDERA ROAD

12,729 VPD - FM 15603

REPRESENTATIVE PHOTO

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BANDERA RD – 36,758 VPD

LESL

IE R

D – 12

,729 V

PD

NORTH LOOP 1604 W

EST

McDonald’s

Sandra Day O’Connor High School

Kuentz Elementary School

BURGER KING

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TENANT SUMMARYSONIC DRIVE-INSonic Corp., more commonly known as Sonic, is the operator of an American drive-in fast-food restaurant chain based in Oklahoma, Oklahoma, that is soon to be owned by Inspire Brands, the parent company of Arby’s and Buffalo Wild Wings. What started as a small, local, trend-reliant burger joint has grown mightily into a large, national, archetypal pillar of the quick service industry. Beginning as not much more than a root beer stand in small town Oklahoma, Sonic Drive-In has proven that the drive-in restaurant model, unlike its movie theater counterpart, has stood the test of time. While the brand still embraces its nostalgic character, it doesn’t rely on it as a crutch and has instead continued to establish itself as more than a gimmick. Today, the Sonic brand is the nation’s largest chain of drive-in restaurants.

As of September 5, 2018, there are 3,606 Sonic restaurants in 45 U.S. states. In 2011, it was ranked 10th in QSR Magazine’s rankings of the top 50 quick-service and fast-casual restaurant brands in the nation. Known for its use of carhops on roller skates, the company annually hosts a competition to determine the top skating carhop in its system.

Although Sonic has operated since the early 1950s, Sonic Corp. incorporated in Delaware in 1978. It has its corporate headquarters in Oklahoma City; the headquarters building features a dine-in Sonic restaurant in an adjacent building. Its stock trades on NASDAQ with the symbol SONC. Company restaurants are owned and operated by Sonic Restaurants, Inc., a wholly owned subsidiary.

Almost 90% of Sonic Drive-In’s are franchised. The franchise offering comes in two different formats: traditional and non-traditional. Subject site is a rare corporate guaranteed location.

EBITDAR, For Year Ended 2017: $95,467 (mil)EBITDAR, For Year Ended 2016: $92,504 (mil)Net worth as of 2017: -$201,758 (mil)Revenue, For Year Ended 2017: $477,267 (mil)Revenue, For Year Ended 2016: $606,320 (mil)

REPRESENTATIVE PHOTO

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LOUISVILLE, KYHEADQUARTERS (INTERNATIONAL / US)

PARENT COMPANY NASDAQ

LOCATIONSGUARANTOR

SONC S&P 600 COMPONENT

3,557 (345 COMPANY-OWNED AND

3,212 FRANCHISED) (2016)CORPORATE

INSPIRE BRANDS

REVENUE

$606 MIL

OKLAHOMA CITY, OK

WEBSITE

WWW.SONICDRIVEIN.COM

J. CLIFFORDHUDSONPRESIDENT / CEO

(NEED TO UPDATE)

(NEED TO UPDATE)

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BANDERA RD

CEDA

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AIL

Driv

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Par

king

Driv

e-in

Par

king

Driv

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Par

king

SITE PLAN

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San Antonio

Leon ValleyAlamo Heights

Terrell Hills

China Grove

Cibolo

Cross Mountain

AtascosaElmendorf

Selma

Windcrest

Helotes

Universal City

9

HELOTES, TEXASSurrounded by the beauty of the Texas Hill County, the City of Helotes is a vibrant community boasting a flourishing economy and a high quality of life.

Located just northwest of San Antonio, Helotes was incorporated in 1981 as a Type A General Law City. Helotes, whose name is derived from the Spanish word elotes or “corn-on-the-cob,” has been on Texas maps since the nineteenth century. Once inhabited by Lipan Apaches, Tonkawas, and Comanches, the City originally served as a stagecoach stop between San Antonio and Bandera.

For decades, Helotes remained a farming community. The opening of the famous John T. Floore County Store in 1946 marked a turn towards commerce and economic growth. The dance hall is listed in the National Register of Historic Places and is a Texas Historic Landmark that draws top musical talent to its stages.

Today, the City of Helotes is a unique community that maintains its small-town tranquility and family-oriented activities. Citizens remain committed to economic prosperity while balancing environmental consciousness and historic preservation with modern revitalization. In 2013, Bloomberg BusinessWeek named Helotes as the Best Small Town in Texas to Raise Kids. In 2017, Career Website Zippia.com named Helotes one of the Ten Most Successful Cities in Texas.

As of the 2000 census, Helotes had a population of 4,285 residents. The population density was 1,014.3 people per square mile. 1,525 housing units were registered with an average density of 361.0 per square mile. The racial makeup of the city was 86.95% White, 26.49% Latino, 2.24% African American, 0.14% Pacific Islander, and 3.03% from two or more races.

Additionally, Helotes had 1,471 households of which 40.2% had children under the age of 18, 79.9% were married couples living together, and 12.2% were non-families. 10.6% of all households were made up of individuals and 4.5% had someone living alone who was 65 years of age or older. The average household size was 2.91 persons and the average family size was 3.13 persons.

The median income for a household in the city was $76,951, and the median income for a family was $80,090. About 2.0% of families and 2.0% of the population were below the poverty line including 2.4% of those under the age of 18 years and 2.9% of the age of 65 years or older.

Helotes prides in providing a booming economy and a high quality of life to residents. The city provides several family-oriented activities, making it one of the best towns in Texas to raise children.

LOCATION OVERVIEW

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M A J O R E M P L O Y E R S : 2 0 1 7H E L O T E S , T E X A S

Lackland Air Force Base 37,097

Fort Sam Houston 32,000

HEB Food Stores 20,000

USAA 17,000

Northside ISD 12,751

Randolph Air Force Base 11,068

North East ISD 10,052

City of San Antonio 9,145

Methodist Healthcare System 8,118

San Antonio ISD 7,000

LOCATION HIGHLIGHTS

HELOTES, TXAFFLUENT SAN ANTONIO SUBURB

Population has Skyrocketed Over 70%

Since the Turn of the Millennia

Named Best Place To Raise Kids In Texas, by Bloomberg in 2013 (Link)

Among Zippia.com’s Ten Most Successful Cities In Texas (Link)

San Antonio

Leon ValleyAlamo Heights

Terrell Hills

China Grove

Cibolo

Cross Mountain

AtascosaElmendorf

Selma

Windcrest

Helotes

Universal City

21 Miles from Downtown San Antonio

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203,872Total Population Within 5-Mile Radius

$88,581Average Household Income

Within 5-Mile Radius

$71,069Median Household Income

Within 5-Mile Radius

70,643Total Households in 5-Mile Radius

78.21% From 2000

DEMOGRAPHICS / HELOTES, TX

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POPULATION 1 MILE 3 MILES 5 MILES2022 Projection

Total Population 8,228 98,170 234,5342017 Estimate

Total Population 6,227 83,638 203,8722010 Census

Total Population 5,782 77,792 185,5272000 Census

Total Population 1,581 44,441 116,681Current Daytime Population

2017 Estimate 3,547 51,257 155,257

HOUSEHOLDS 1 MILE 3 MILES 5 MILES2022 Projection

Total Households 3,023 33,796 83,0592017 Estimate

Total Households 2,242 28,226 70,643

Average (Mean) Household Size 2.89 2.92 2.82010 Census

Total Households 2,089 26,467 64,5652000 Census

Total Households 556 14,507 39,641Occupied Units

2022 Projection 3,023 33,796 83,0592017 Estimate 2,242 28,244 71,110

HOUSEHOLDS BY INCOME 1 MILE 3 MILES 5 MILES2017 Estimate

$150,000 or More 17.58% 13.16% 10.44%

$100,000 - $149,000 30.36% 23.74% 19.62%$75,000 - $99,999 15.42% 17.50% 16.74%$50,000 - $74,999 19.53% 21.83% 22.25%$35,000 - $49,999 7.86% 10.01% 11.43%Under $35,000 9.24% 13.76% 19.51%

Average Household Income $117,822 $101,275 $88,581

Median Household Income $96,624 $80,702 $71,069

Per Capita Income $42,428 $34,215 $30,936

HOUSEHOLDS BY EXPENDITURE 1 MILE 3 MILES 5 MILESTotal Average Household Retail Expenditure $88,078 $82,574 $76,308

Consumer Expenditure Top 10 CategoriesHousing $22,286 $20,884 $19,503 Shelter $18,374 $17,053 $15,726 Transportation $11,829 $11,096 $10,408 Food $10,098 $9,347 $8,530 Personal Insurance and Pensions $9,370 $8,322 $7,358 Health Care $6,046 $5,520 $5,010 Utilities $5,286 $4,980 $4,656 Entertainment $3,494 $3,184 $2,894 Apparel $2,761 $2,531 $2,312 Household Operations $2,569 $2,229 $1,961

POPULATION PROFILE 1 MILE 3 MILES 5 MILESPopulation By Age

2017 Estimate Total Population 6,227 83,638 203,872Under 20 30.25% 30.32% 30.26%20 to 34 Years 18.00% 21.67% 24.61%35 to 39 Years 7.22% 7.54% 7.44%40 to 49 Years 17.77% 15.35% 13.49%50 to 64 Years 18.13% 16.93% 16.08%Age 65+ 8.65% 8.19% 8.11%

Median Age 36.34 33.66 31.92Population 25+ by Education Level

2017 Estimate Population Age 25+ 3,940 51,942 123,920Elementary (0-8) 1.77% 1.62% 1.95%Some High School (9-11) 2.18% 2.84% 3.44%High School Graduate (12) 15.29% 17.57% 19.19%Some College (13-15) 23.31% 25.15% 26.87%Associate Degree Only 8.81% 10.20% 9.90%Bachelors Degree Only 29.03% 27.18% 24.51%Graduate Degree 18.74% 14.26% 13.21%

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HELOTES TEXAS

REPRESENTATIVE PHOTO

RYAN JAAMAASSOCIATE

Tel: (786) 522-7127Fax: (786) 522-7010

Ryan.Jaama@marcusmillichap.com License: CA 01985648

LIOR REGENSTREIFSENIOR MANAGING DIRECTOR INVESTMENTS

SENIOR DIRECTOR, NET LEASED PROPERTIES GROUPENCINO OFFICE

Tel: (818) 212-2730Fax: (818) 212-2710

Lior.Regenstreif@marcusmillichap.comLicense: CA 01267761