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SERVICE KING 27710 E. University Drive, Little Elm, TX 75068 InvestCoreCommercial.com Exclusively Offered By: Michael Campbell, CCIM 619.546.0122 [email protected] CA Lic #01843521 Ed Colson Jr., CCIM 619.546.0121 [email protected] CA Lic #01382996 | TX Lic #635820

SERVICE KING - LoopNet...advocate I-CAR. Only 10 percent of U.S. repair centers currently meet the rigorous I-CAR Gold Class Standards, establishing Service King’s more than 290

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Page 1: SERVICE KING - LoopNet...advocate I-CAR. Only 10 percent of U.S. repair centers currently meet the rigorous I-CAR Gold Class Standards, establishing Service King’s more than 290

SERVICE KING27710 E. University Drive, Little Elm, TX 75068

InvestCoreCommercial.com

Exclusively Offered By:

Michael Campbell, CCIM 619.546.0122 [email protected] CA Lic #01843521

Ed Colson Jr., CCIM 619.546.0121 [email protected] Lic #01382996 | TX Lic #635820

Page 2: SERVICE KING - LoopNet...advocate I-CAR. Only 10 percent of U.S. repair centers currently meet the rigorous I-CAR Gold Class Standards, establishing Service King’s more than 290

2 | Service King - Little Elm, Texas

InvestCore Commercial presents this Offering which

has been prepared by InvestCore Commercial for use

by a limited number of parties and does not purport

to provide a necessarily complete summary of the

Property or any of the documents related thereto, nor

does it purport to be all-inclusive or to contain all of

the information which prospective investors may need

or desire. All projections have been developed by

InvestCore Commercial, the Owner, and designated

sources and are based upon assumptions relating to

the general economy, competition, and other factors

beyond the control of the Owner and, therefore, are

subject to variation. No representation is made by

InvestCore Commercial or Owner as to the accuracy

or completeness of the information contained herein,

and nothing contained herein is, or shall be relied

on as, a promise or representation as to the future

performance of the Property. Although the information

contained herein is believed to be correct, Owner

and its employees disclaim any responsibility for

inaccuracies and expect prospective purchasers to

exercise independent due diligence in verifying all such

information. Further, InvestCore Commercial, Owner,

and its employees disclaim any and all liability for

representations and warranties, expressed and implied,

contained in, or for omission from, this Investment

Offering or any other written or oral communication

transmitted or made available to the recipient. This

Offering does not constitute a representation that there

has been no change in the business or affairs of the

Property or the Owner since the date of preparation of

the package. Analysis and verification of the information

contained in this package is solely the responsibility

of the prospective purchaser. Additional information

and an opportunity to inspect the Property will be

made available upon written request to interested and

qualified prospective investors.

Owner and InvestCore Commercial each expressly

reserve the right, at their sole discretion, to reject any

and all expressions of interest or offers regarding the

Property and/or terminate discussions with any entity

at any time with or without notice. Owner shall have no

legal commitment or obligation to any entity reviewing

this Offering or making an offer to purchase the Property

unless and until a written agreement for the purchase

of the Property has been fully executed, delivered,

and approved by Owner and its legal counsel, and any

conditions to Owner’s obligations thereunder have

been satisfied or waived. InvestCore Commercial is not

authorized to make any representations or agreements

on behalf of Owner.

This Offering and the contents, except such information

which is a matter of public record or is provided in

sources available to the public (such contents as so

limited herein are called the “Contents”), are of a

confidential nature.

By accepting the package, you agree (i) to hold and treat

it in the strictest confidence, (ii) not to photocopy or

duplicate it, (iii) not to disclose the package or any of the

contents to any other entity (except to outside advisors

retained by you, if necessary, for your determination of

whether or not to make a proposal and from whom you

have obtained an agreement of confidentiality) without

the prior written authorization of Owner or InvestCore

Commercial, (iv) not use the package or any of the

contents in any fashion or manner detrimental to the

interest of Owner or InvestCore Commercial, and (v) to

return it to InvestCore Commercial immediately upon

request of InvestCore Commercial or Owner.

If you have no further interest in the Property, please

return this Investment Offering forthwith.

OFFERING STATEMENT / DISCLAIMER

InvestCore Commercial, Inc. 3910 W. Point Loma Blvd, Suite B

San Diego, CA 92110

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TABLE OF CONTENTS

INVESTMENT SUMMARY 4

Executive Summary Investment Highlights Why Invest in Service King

PROPERTY DESCRIPTION 8

Site Plan Street Map Aerial New Commercial Developments Master Planned Communities Aerial Recent Sale Comparables

AREA OVERVIEW 15

About Service King About Little Elm and Dallas Fort Worth Demographics

3 | Service King - Little Elm, Texas

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4 | Service King - Little Elm, Texas

Tenant: Service King Paint & Body, LLC

Address: 27710 E University Dr, Little Elm, TX 75068

Building Size: 20,651 SF

Lot Size: 10.36 Acres (3 Acres Useable)

Year Built: 2018

Building Type: Concrete tilt-up

Rent Commencement Date: 6/1/18

Lease Expiration Date: 5/31/33

Primary Lease Term: 15 Years

Options: Three (3) 5-year options to extend

Rent Increases: 10% every 5 years in primary and option terms

Lease Type: Absolute NNN - no Landlord responsibilities

RENT SCHEDULE

EXECUTIVE SUMMARY

Price: $6,711,652

Cap Rate: 5.75%

Net Operating Income: $385,920

INVESTMENT SUMMARY

Term Years Monthly Rent Annual Rent % Increase

Primary (Current) 1 – 5 $32,160 $385,920

Primary 6-10 $35,376 $424,512 10%

Primary 11-15 $38,914 $466,963 10%

Option 1 16-20 $42,805 $513,660 10%

Option 2 21-25 $47,085 $565,025 10%

Option 3 26-30 $51,794 $621,528 10%

OFFERING TERMS

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5 | Service King - Little Elm, Texas

INVESTMENT SUMMARY

INVESTMENT HIGHLIGHTS

Corporate Signature - Strong Parent Companies• With The Blackstone Group (majority) and The Carlyle Group (minority) as

the two ownership groups, Service King has access to significant private equity to support their successful, sustained growth.

• Since Carlyle’s acquisition in 2012, the footprint has grown from 47 Texas locations to 337+ locations in 24 state.

Amazon/Ecommerce-Proof Industry• The landscape of retail tenants offering goods and services is changing

on a daily basis. The collision repair industry is well positioned to avoid pressure from ecommerce gaining traction on market share.

• Over 2.4 million people were injured in auto accidents in 2015, thus there will always be a demand for brick and mortar collision repair facilities.

Long Term, Absolute NNN Lease• Full 15-year lease term providing long-term passive income for any investor.

Absolute NNN lease structure, with zero landlord responsibilities, including roof and structure. The ultimate management-free investment.

• The longer lease term allows the investor the ability to find the most attractive debt, if necessary.

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6 | Service King - Little Elm, Texas

INVESTMENT SUMMARY

LOCATION HIGHLIGHTS

Dallas Based Company• Being a Dallas based company, the company has pride in dominating

its “backyard”.

• Having its roots and corporate headquarters in DFW, Service King’s knowledge of the market would not allow them to pick a “B” location.

Newly Constructed – Concrete Building • The newly constructed building will provide an investor piece of mind

knowing that they are purchasing a new property with no deferred maintenance.

• “Institutional” type construction – concrete tilt-up building.

• A new Service King building is state of the art, they combine body repair, paint and polish, reassembly and cleaning all under one roof.

Excellent Highway Location – High Traffic Counts: • Strong location along East University Drive (Highway 380), one of the

major thoroughfare’s through Little Elm with 46,000 cars per day passing the subject property.

Strong Demographics and Explosive Growth: • The city continues to grow at a rapid rate with above average growth of

8.73% and 2.93% in years 2017 and 2016 respectively. Since 2000, Little Elm has seen an astonishing 948% growth.

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7 | Service King - Little Elm, Texas

INVESTMENT SUMMARY

WHY INVEST IN SERVICE KING?

DALLAS BASED COMPANY

Being a Dallas based company, the company has pride in dominating its “backyard”. Having its roots and corporate headquarters in DFW, Service King’s knowledge of the market would not allow them to pick a “B” location. We are confident in expressing to potential investors that they

will not fail in their backyard.

LONG TERM COMPANY HISTORY AND PROVEN

TRACK RECORD

Service King was founded over 40 years ago in 1976 and has grown to over 337 locations in 24 states. The company has established itself as one of the top two leading collision repair companies in the US (only

behind Caliber Collision).

STRONG PARENT COMPANIES

With The Blackstone Group (majority) and The Carlyle Group (minority) as the two ownership groups, Service King has access to significant private equity to support their successful, sustained growth. Since Carlyle’s acquisition in 2012, the footprint has grown from 47 Texas locations to 337+ locations in 24 state.

AWARD WINNING INDUSTRY LEADER

Service King earned the coveted Gold Class Professionals designation from independent industry advocate I-CAR. Only 10 percent of U.S. repair centers currently meet the rigorous I-CAR Gold Class Standards, establishing Service King’s more than 290 I-CAR Gold Class locations as elite in the industry.

STRONG COMMUNITY TIES – MISSION 2 HIRE VETERANS

Service King officially welcomed its 400th U.S. Military veteran to the family as part of the organization’s ongoing Mission 2 Hire initiative. With the recent milestone, the company remains ahead of its original goal to successfully recruit and hire 500 U.S. Armed Forces veterans and family members in five years. Mission 2 Hire embodies our unwavering commitment not only to hire veterans but to provide our heroes with a world-class organization to call their professional home.

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PROPERTY DESCRIPTION

SITE PLAN

W-1

W-1

W-1

W-1

W-1

W-1 W-1

D

CC

A

C B

A

AW-1

W-1

W-1

06

A001

Sim

A00103

Sim

06

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Sim

06

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Sim

06

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Sim

06

A001

Sim

1

2

3

3

4

5

5

6

7

5

5

5

51

5

5

5

5

5

8

7

7

7

SERVICE KING REPAIR GARAGE20,651 SF

24' - 0"

24' - 0"

24' - 0"

24' - 3"

24' - 0"

E . U N I V E R S I T Y D R . / H I G H WAY 3 8 0

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9 | Service King - Little Elm, Texas

PROPERTY DESCRIPTION

STREET MAP

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10 | Service King - Little Elm, Texas

PROPERTY DESCRIPTION

STREET MAP

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11 | Service King - Little Elm, Texas

PROPERTY DESCRIPTION

AERIAL

E.

UN

IVE

RS

ITY

DR

. /H

IGH

WA

Y 3

80

- 4

6,0

00

CP

D

Kroger and Home Depot Anchored Center

Future LA Fitness Anchored Center Future HEB Anchored Center

Future Walmart Anchored Center

SUBJECT PROPERTY

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12 | Service King - Little Elm, Texas

PROPERTY DESCRIPTION

NEW SHOPPING CENTER DEVELOPMENTS IN THE RETAIL TRADE AREA

SWC of 423 & 380RETAIL PAD SITES & RETAIL SHOP SPACE AVAILABLE F r i s c o , Te x a s

DB2RE.comAny projections used are speculative in nature and do not represent the current or future performance of the site and therefore should not be relied upon. We make no guarantee or warranty regarding the information contained

in this flyer. You and your advisors should perform a detailed, independent, investigation of the property to determine whether it meets your satisfaction and the Seller expressly disclaims any representation or warranty with respect to the accuracy of the Submission Items, and Buyer acknowledges that it is relying on its own investigations to determine the accuracy of the Submission Items. Davidson & Bogel Real Estate, LLC. 2018

PROPERTY OVERVIEWSIZE: Pad sites and shop space available

TIMING: Kroger is open on the NEC. Home Depot to break ground Spring 2019 & open 02/2020.

ZONING: Planned Development including retail office, restaurant & multifamily

TRAFFIC COUNTS: FM 423:HWY 380:

17,938 VPD54,451 VPD

*All estimates and future projections are for single-family development and households only. Multi-family growth has not been included.This information was provided by RSI in March of 2016.

DEMOGRAPHICS:2017 Population 1 Mile:2017 Population 2 Mile:2017 Population 3 Mile:% Proj Growth 2017-2022 1 Mile:% Proj Growth 2017-2022 2 Mile:% Proj Growth 2017-2022 3 Mile:2017 Total Daytime Population 1 Mile:2017 Total Daytime Population 2 Mile:2017 Total Daytime Population 3 Mile:2017 Total Daytime Employees 1 Mile:2017 Total Daytime Employees 2 Mile:2017 Total Daytime Employees 3 Mile:2017 Median HH Income 1 Mile:2017 Median HH Income 2 Mile:2017 Median HH Income 3 Mile:2017 Average HH Income 1 Mile:2017 Average HH Income 2 Mile:2017 Average HH Income 3 Mile:Median Home Value 1 Mile:Median Home Value 2 Mile:Median Home Value 3 Mile:

1,70520,54345,20312.779.717.27896

11,38727,419

75971

4,690$79,428

$100,263$104,271$90,714

$106,740$115,539$232,143$218,023$232,944

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13 | Service King - Little Elm, Texas

PROPERTY DESCRIPTION

EXPLOSIVE RESIDENTIAL GROWTH - NEW MASTER PLANNED COMMUNITIESPaloma Creek North900 Homes

Paloma Creek South4,200 Homes

Paloma Elementary School670 Students

Navo Middle School1,077 Students

Creekside Homes

Savannah2,400 Homes

Savannah Elementary School700 Students

Union Park by Hillwood

Windsong Ranch3,500 Homes

Windsong Ranch Elementary950 Students

The Estates 3EightyLuxury Apartment Community

Beazer Homes Frisco Hills

Baylor Emergency Medical Center

Hollyhock889 Lots

Somerset Park136 Lots

1

2

3

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8

9

10

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12

1

2

5

67

8 9 10

12

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E . U N I V E R S I T Y D R . - 4 6 , 0 0 0 C P D

SUBJECT PROPERTY

13

13

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1415

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14 | Service King - Little Elm, Texas

PROPERTY DESCRIPTION

RECENT SALE COMPARABLES

Property Name Address City State Zip Code Sale Date Sale Price Cap Rate Net Income Bldg SF Price Per SF Land Area SF Year Built

Service King (SUBJECT) 27710 E University Drive Little Elm TX 75068 $6,711,652 5.75 $385,920 22,500 $298 451,282 2018

Service King 10475 Southwest Fwy Houston TX 77074 1/5/18 $7,000,000 5.90 $413,023 46,111 $152 254,616 1986

Service King 4545 S Sam Houston Pkwy E Houston TX 77048 4/6/18 $2,850,000 6.00 $171,000 15,000 $190 152,460 2006

Service King 12490 Metro Pky Fort Myers FL 33966 1/3/18 $1,690,000 6.38 $107,822 18,880 $90 87,555 2001

Service King 5270 Memorial Dr The Colony TX 75056 3/16/17 $7,215,200 6.05 $436,520 22,461 $321 106,722 2016

1

2

3

4

5

1

2 3

4

5

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15 | Service King - Little Elm, Texas

Mission Statement

Service King strives to be the collision repair operator of choice by providing a secure, fulfilling workplace that motivates our teammates to deliver safe, superior repairs with excellent customer service while ensuring sustainable, profitable growth and opportunity.

The business began inside a single body shop in West Dallas and through placing the customer at the center of the repair experience, Service King has steadily grown into the premier collision repair provider of choice across the U.S.

History

• Service King was founded by Eddie Lenox in 1976. Its first location was in Dallas.

• In 2009, the then-independently owned Service King bought the three-location D&D Collision chain in the Houston area.

• In 2012, The Carlyle Group purchased a majority stake in Service King. Around that time, it expanded into Arizona. Global investment and advisory group Blackstone purchased majority ownership in Service King in July 2014.

• Service King eclipsed the 200-location milestone by December 2014 by purchasing Seattle-headquartered Kirmac Collision Services to expand its footprint in the Pacific northwest.

• Service King hit the 300-location mark in August 2016; it also opened a 70,000 square foot center in Milpitas, California around that time.

• Service King opened a new corporate office located in Richardson, Texas in early 2017.

AREA OVERVIEW

ABOUT SERVICE KING

OWNERSHIP

Private (The Blackstone Group (majority) and The Carlyle Group (minority))2017 REVENUES

~$1 BillionNUMBER OF LOCATIONS

337NUMBER OF EMPLOYEES

6,000+NUMBER OF STATES (US)

24HEADQUARTERS

Richardson (Dallas / Ft. Worth MSA), TXWEBSITE

www.ServiceKing.com

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16 | Service King - Little Elm, Texas

LITTLE ELM

Situated along and south of US380, a major east-west corridor situated centrally between IH-35 and US75 and only 6 miles from the Dallas North Tollway, the community is well positioned on the path of growth in the Dallas area and provides easy access to all its amenities.

As growth discovered Little Elm in the late 1990’s, residents began to prepare for the flood of new residents that were learning about our beautiful

AREA OVERVIEW

ABOUT LITTLE ELM AND DALLAS FORT WORTH

lake setting that had been enjoyed so much by a small number of the local residents for decades.Little Elm was incorporated in June 1966, adopted the Council/Manager form of government and its Home Rule Charter in May of 2001, and currently has approximately 9,012 acres or 14.08 square miles within the corporate limits.

DALLAS/FT. WORTH MSA

Dallas/Fort Worth, and surrounding cities, are one of the most vibrant and fastest growing metropolitan areas in the United States. As home to a number of prominent institutions of higher learning, a mix of professional sports teams and many significant historical sites, Dallas MSA is an attractive city for people and businesses who are looking to relocate. Continued Steady Population Growth

With over 1.3 million residents in the city and well over 7 million in the Dallas / Fort Worth Metropolitan Area, there are plenty of prospective buyers and renters in the Dallas MSA to continue its steady residential and commercial real estate growth. The city’s population has grown by about 10% in the last 10 years.

Strong Economy

The unemployment rate in Dallas is generally

lower than the national average due to the city’s strong economy. Some of the large industries that play an important part of the Dallas economy include communications, technology, medical and education. The diversification of the area’s economy makes Dallas and the surrounding cities an attractive place for real estate investing as investors need real estate renters and buyers with a strong, steady income to fuel the local real estate markets.

Dallas/Ft. Worth presents investors with any type of property they may want including commercial and residential properties that range from newly built to historic. The city also has a variety of types of properties from ultra-luxury to more affordable, basic properties for investors to consider. No matter what type of real estate investment a specific investor may be looking for, he or she is sure to find just what is needed in the DFW MSA.

• Since 2000, Little Elm has explosive growth of 948%

• In 2017, population increased 8.73% and continues to rise while continuing to maintain its small-town charm and hospitality

• Named the fourth safest city on the State of Texas by Safewise

• Named the leanest government in North Texas by the Dallas Business Journal and increased its Bond Rating to “AA”.

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17 | Service King - Little Elm, Texas

AREA OVERVIEW

DEMOGRAPHICS

Executive SummaryService King - Little Elm, TX Prepared By Ed Colson Jr., CCIM27330-27922 US-380, Aubrey, Texas, 76227 Latitude: 33.21885Rings: 5, 10, 15 mile radii Longitude: -96.89458

5 miles 10 miles 15 milesPopulation

2000 Population 6,815 90,533 499,7922010 Population 69,646 248,844 837,7732017 Population 109,827 360,809 1,048,3002022 Population 142,305 440,667 1,210,2842000-2010 Annual Rate 26.17% 10.64% 5.30%2010-2017 Annual Rate 6.48% 5.26% 3.14%2017-2022 Annual Rate 5.32% 4.08% 2.92%2017 Male Population 48.9% 49.1% 48.9%2017 Female Population 51.1% 50.9% 51.1%2017 Median Age 31.9 34.0 34.7

In the identified area, the current year population is 1,048,300. In 2010, the Census count in the area was 837,773. The rate of change since 2010 was 3.14% annually. The five-year projection for the population in the area is 1,210,284 representing a change of 2.92% annually from 2017 to 2022. Currently, the population is 48.9% male and 51.1% female.

Median Age

The median age in this area is 31.9, compared to U.S. median age of 38.2.Race and Ethnicity

2017 White Alone 69.9% 71.4% 68.0%2017 Black Alone 13.9% 10.6% 10.0%2017 American Indian/Alaska Native Alone 0.6% 0.6% 0.6%2017 Asian Alone 6.3% 8.5% 12.5%2017 Pacific Islander Alone 0.1% 0.1% 0.1%2017 Other Race 5.3% 5.2% 5.4%2017 Two or More Races 3.8% 3.7% 3.5%2017 Hispanic Origin (Any Race) 17.9% 17.3% 16.6%

Persons of Hispanic origin represent 16.6% of the population in the identified area compared to 18.1% of the U.S. population. Persons of Hispanic Origin may be of any race. The Diversity Index, which measures the probability that two people from the same area will be from different race/ethnic groups, is 64.7 in the identified area, compared to 64.0 for the U.S. as a whole.

Households2000 Households 2,244 30,924 181,8372010 Households 21,635 83,909 302,6442017 Total Households 33,750 119,723 373,5352022 Total Households 43,896 145,608 429,1702000-2010 Annual Rate 25.43% 10.50% 5.23%2010-2017 Annual Rate 6.33% 5.02% 2.95%2017-2022 Annual Rate 5.40% 3.99% 2.82%2017 Average Household Size 3.25 3.01 2.78

The household count in this area has changed from 302,644 in 2010 to 373,535 in the current year, a change of 2.95% annually. The five-year projection of households is 429,170, a change of 2.82% annually from the current year total. Average household size is currently 2.78, compared to 2.74 in the year 2010. The number of families in the current year is 266,639 in the specified area.

Data Note: Income is expressed in current dollarsSource: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2017 and 2022. Esri converted Census 2000 data into 2010 geography.

May 17, 2018

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18 | Service King - Little Elm, Texas

DEMOGRAPHICS

AREA OVERVIEWExecutive SummaryService King - Little Elm, TX Prepared By Ed Colson Jr., CCIM27330-27922 US-380, Aubrey, Texas, 76227 Latitude: 33.21885Rings: 5, 10, 15 mile radii Longitude: -96.89458

5 miles 10 miles 15 milesMedian Household Income

2017 Median Household Income $101,737 $100,667 $89,8392022 Median Household Income $105,240 $105,542 $99,4102017-2022 Annual Rate 0.68% 0.95% 2.05%

Average Household Income

2017 Average Household Income $115,809 $119,805 $115,8732022 Average Household Income $127,915 $133,603 $129,3432017-2022 Annual Rate 2.01% 2.20% 2.22%

Per Capita Income2017 Per Capita Income $35,882 $39,796 $41,5392022 Per Capita Income $39,771 $44,180 $46,0942017-2022 Annual Rate 2.08% 2.11% 2.10%

Households by IncomeCurrent median household income is $89,839 in the area, compared to $56,124 for all U.S. households. Median household income is projected to be $99,410 in five years, compared to $62,316 for all U.S. households

Current average household income is $115,873 in this area, compared to $80,675 for all U.S. households. Average household income is projected to be $129,343 in five years, compared to $91,585 for all U.S. households

Current per capita income is $41,539 in the area, compared to the U.S. per capita income of $30,820. The per capita income is projected to be $46,094 in five years, compared to $34,828 for all U.S. households Housing

2000 Total Housing Units 2,445 33,638 194,9832000 Owner Occupied Housing Units 1,886 25,302 123,3842000 Renter Occupied Housing Units 358 5,622 58,4532000 Vacant Housing Units 201 2,714 13,146

2010 Total Housing Units 22,890 89,490 321,8772010 Owner Occupied Housing Units 18,827 66,114 202,6142010 Renter Occupied Housing Units 2,808 17,795 100,0302010 Vacant Housing Units 1,255 5,581 19,233

2017 Total Housing Units 35,153 126,513 394,1522017 Owner Occupied Housing Units 28,429 92,228 242,0782017 Renter Occupied Housing Units 5,321 27,494 131,4562017 Vacant Housing Units 1,403 6,790 20,617

2022 Total Housing Units 45,718 153,798 452,3042022 Owner Occupied Housing Units 36,432 111,547 277,1552022 Renter Occupied Housing Units 7,464 34,061 152,0142022 Vacant Housing Units 1,822 8,190 23,134

Currently, 61.4% of the 394,152 housing units in the area are owner occupied; 33.4%, renter occupied; and 5.2% are vacant. Currently, in the U.S., 55.6% of the housing units in the area are owner occupied; 33.1% are renter occupied; and 11.3% are vacant. In 2010, there were 321,877 housing units in the area - 62.9% owner occupied, 31.1% renter occupied, and 6.0% vacant. The annual rate of change in housing units since 2010 is 9.42%. Median home value in the area is $249,599, compared to a median home value of $207,344 for the U.S. In five years, median value is projected to change by 2.55% annually to $283,108.

Data Note: Income is expressed in current dollarsSource: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2017 and 2022. Esri converted Census 2000 data into 2010 geography.

May 17, 2018

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19 | Service King - Little Elm, Texas

TYPES OF REAL ESTATE LICENSE HOLDERS:

• A BROKER is responsible for all brokerage activities, including acts performed by sales

agents sponsored by the broker.

• A SALES AGENT must be sponsored by a broker and works with clients on behalf of

the broker.

A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that

the broker represents):

• Put the interests of the client above all others, including the broker’s own interests;

• Inform the client of any material information about the property or transaction received

by the broker;

• Answer the client’s questions and present any offer to or counter-offer from the client; and

• Treat all parties to a real estate transaction honestly and fairly.

A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:

AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property

owner’s agent through an agreement with the owner, usually in a written listing to sell or

property management agreement. An owner’s agent must perform the broker’s minimum

duties above and must inform the owner of any material information about the property or

transaction known by the agent, including information disclosed to the agent or subagent

by the buyer or buyer’s agent.

AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant’s agent by

agreeing to represent the buyer, usually through a written representation agreement.

A buyer’s agent must perform the broker’s minimum duties above and must inform the

buyer of any material information about the property or transaction known by the agent,

including information disclosed to the agent by th e seller or seller’s agent.

AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties

the broker must first obtain the written agreement of each party to the transaction.

The written agreement must state who will pay the broker and, in conspicuous bold or

underlined print, set forth the broker’s obligations as an intermediary. A broker who acts

as an intermediary:

• Must treat all parties to the transaction impartially and fairly;

• May, with the parties’ written consent, appoint a different license holder associated with the

broker to each party (owner and buyer) to communicate with, provide opinions and advice

to, and carry out the instructions of each party to the transaction.

• Must not, unless specifically authorized in writing to do so by the party, disclose:

• that the owner will accept a price less than the written asking price;

• that the buyer/tenant will pay a price greater than the price submitted in a written offer;

and

• any confidential information or any other information that a party specifically instructs the

broker in writing not to disclose, unless required to do so by law.

AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction

without an agreement to represent the buyer. A subagent can assist the buyer but does not

represent the buyer and must place the interests of the owner first.

TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN

WRITING AND CLEARLY ESTABLISH:

• The broker’s duties and responsibilities to you, and your obligations under the representation

agreement.

• Who will pay the broker for services provided to you, when payment will be made and how

the payment will be calculated.

LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information

purposes. It does not create an obligation for you to use the broker’s services. Please

acknowledge receipt of this notice below and retain a copy for your records.

INFORMATION ABOUT BROKERAGE SERVICES

Buyer / Tenant / Seller / Landlord Initials Date

Edward Colson / InvestCore Commercial License No. 635820

[email protected]

619.546.0121