CHRIS KOSTANECKIck@capitalpacific.com | (415) 274-2701 CA BRE# 01002010

ZEB RIPPLEzripple@capitalpacific.com | (415) 274-2702 CA BRE# 01242540

CHRIS PETERScpeters@capitalpacific.com | (415) 274-2703 CA BRE# 01339983

For more info on this opportunity please contact:

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CORPOrATE absolute NNN sale leaseback in Texas1924 W. Tyler, Harlingen, TX 78550

Bluewave car wash

IN ASSOCIATION WITH TX LICENSED BROKER: David W. Hardesty, Hardesty Retail Group(972) 233-5300 | david@hardestyrealty.net14228 Midway Rd, Suite 204, Dallas, TX 75244

Investment Highlights15-YEAR ABSOLUTE NNN SALE LEASEBACK LOCATED AT

FREEWAY OFF RAMP IN DENSE RETAIL MARKET

The subject property is a corporately operated BlueWave Express Car Wash in the heart of Harlingen, TX. Situated at the Intersection of Interstate 2 and Interstate 69-E, combined traffic counts near the site are in excess of 97,000 vehicles

per day. Upon the close of escrow, the tenant will enter into a new 15-year absolute NNN lease.

RENTABLE SF . . . . . . . . . . . . . . . . . . . 4,810 SF

LOT SIZE . . . . . . . . . . . . . . . . . . . . . . . 1.00 AC

LEASE TYPE. . . . . . . . . . . . . . . . . . . . . NNN

PRICE: $3,940,000CAP: 8.00%

DYNAMIC LOCATION IN DENSE RETAIL NODE

Close proximity to Valle Vista Mall, a 651,000 SF regional mall anchored by Dillards, JC Penney, Sears, Forever 21 and Big Lots. The mall is reported to do an average of $400 per square foot in sales.

Other major retailers driving traffic in the immediate area include Sam’s Club (opened in March 2014) WalMart, Target, Kohl’s, and Bass Pro Shops Outdoor World.

BlueWave is prominently located between the major east-west one way thoroughfare for Harlingen, Interstate 69 E, and Route 77. This location provides maximum visibility, car counts (97,000 VPD), and convenience for customers.

TENANT HIGHLIGHTS

BlueWave is a unique car wash concept with a reputation for selecting prime, high-traffic retail locations and offering a compelling low price point with exceptional results. The company has been in business since 2007, and has enjoyed steady growth.

With 10 locations in Houston and the Rio Grande Valley, BlueWave is a large regional player in a historically fragmented industry. BlueWave is currently developing an additional five stores located in Katy, Brownsville, Mission and two in McAllen, and hopes to open two other stores by the end of 2015. LEASE HIGHLIGHTS15-year absolute NNN lease with four 5 year options10% rental escalations every five yearsSale of the property includes all FF&E (tenant’s equipment including conveyor car wash system).Potential for segregated cost study which may boost owner’s depreciation and shelter income BLUE WAVE | 2

N Ed

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77 Sunshine Strip

W Tyler Avenue

E Harrison Avenue

E Tyler Avenue

S Pa

lm C

ourt

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Ches

ter P

ark

Road

S Comm

erce Street

2

54

206206

499

54BUS 77

BUS 77

BUS 83

BUS 77

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69E

77

69E

83

HARLINGEN MUNICIPAL GOLF

COURSE

Ben Millam Elementary

Travis Elementary

Memorial Middle School

Vernon Jr. High School

Lamar Elementary

Harlingen High School

South

VALLE VISTA MALL

CORPUS CHRISTI77

61,000 DAILY

36,000 DAILY

DENSE RETAIL NODE

Major retailers driving traffic in the immediate area include Sam’s Club (opened in March 2014) Walmart, Target, Kohl’s Bass Pro Shops Outdoor World.

37,000 DA

ILY

BLUE WAVE | 3

W Tyler AvenueW Harrison Avenue

206

206

206

BUS 83

69E

69E

77

77

VALLE VISTA MALL

CORPUS CHRISTI77

DYNAMIC LOCATION

Close proximity to Valle Vista Mall, a 651,000 SF regional mall anchored by Dillards, JC Penney, Sears, Forever 21 and Big Lots. The mall is reported to do an average of $400 per square foot in sales.

36,000 DAILY

37,000 DA

ILY

BLUE WAVE | 4

Site Plan

36,0

00 D

AIL

Y

37,000 DAILY

Tyle

r Ave

nue

Harr

ison

Ave

nue

US Highway 77 Frontage Road69E77

COVERED PARKING AREAS

12 PUMP GAS STATION & LARGE CONVENIENCE

STORE

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 ac-curacy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

Income & Expense

PRICE $3,940,000

Price Per Square Foot: $819.13

Capitalization Rate: 8.00%

Total Rentable Area (SF): 4,800

Lot Size (AC): 1.00

STABILIZED INCOME Per Square Foot

Scheduled Rent $65.53 $315,200

Effective Gross Income $65.53 $315,200

LESS Per Square Foot

Taxes NNN $0.00

Insurance NNN $0.00

Total Operating Expenses NNN $0.00

EQUALS NET OPERATING INCOME $315,200

POTENTIAL SEGREGATED COST BENEFITSThe sale of this net leased property includes the land, the improvements and all of the fixtures, furniture and equipment (FF&E), which may provide substantial depreciation benefits (allowing an investor to offset and shelter the income). Please consult your accountant for details.

BLUE WAVE | 6

TENANT INFO LEASE TERMS RENT SUMMARY

Tenant Name Sq. Ft. Term Current Rent

Monthly Rent

Yearly Rent

Monthly Rent/FT

Yearly Rent/FT

BlueWave Express 4,810 06/01/15* 05/31/20 $315,200 $26,267 $315,200 $5.46 $65.53

06/01/20 05/31/25 $28,893 $346,720 $6.01 $72.08

06/01/25 05/31/30 $31,783 $381,392 $6.61 $79.29

Option 1 06/01/30 05/31/35 $34,961 $419,531 $7.27 $87.22

Option 2 06/01/35 05/31/40 $38,457 $461,484 $8.00 $95.94

Option 3 06/01/40 05/31/45 $42,303 $507,633 $8.79 $105.54

Option 4 06/01/45 05/31/50 $46,533 $558,396 $9.67 $116.09

Option 5 06/01/50 05/31/55 $51,186 $614,236 $10.64 $127.70

Option 6 06/01/55 05/31/60 $56,304.93 $675,659 $11.71 $140.47

Current: 4,810 $315,200 $26,267 $315,200 $5.46 $65.53

*Estimated rent commencement. Tenant will execute a new 15-year lease at the close of escrow.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. Buyer must verify the information and bears all risk for any inaccuracies.

Rent Roll

BLUE WAVE | 7

Photos

CORPORATE 15 YEAR

LEASE IN DENSE RETAIL

MARKET IN TEXAS

BLUE WAVE | 8

THERE ARE 10 BLUE WAVE LOCATIONS IN

TEXAS

Tenant Overview

ABOUT BLUEWAVE EXPRESS CAR WASHBlueWave Express Car Wash was founded in 2007 and has grown the business to ten operating units in Texas with five more stores opening in 2015. It is comprised of managing partners with over 60 years of experience in the car wash industry. They have a Customer Care Center and Care Team at every site to provide assistance and maintain a clean and comfortable site for use.

BlueWave car washes reclaim and reuse up to 80% of the water used in the car wash process through a state of the art Pur-Water Recovery System. They use biodegradeable soaps and detergents and capture and dispose of all contaminenets. BlueWave also works locally with city groups on educating residents on the importance of water conservation. BlueWave selects high visibility, high traffic, premier retail locations in the markets it serves. The goal of BlueWave is to become the “Starbucks of Car Washes.”

BLUE WAVE | 9

Store Locations

Ten Locations Throughout Texas

Map illustrates BlueWave’s current (10 stores) and (5) new stores in Katy, Brownsville, Mission, and two in McAllen. The company hopes to open two additional stores by the end of 2015.

EXISTING LOCATION PLANNED LOCATION BLUE WAVE | 10

Blue Wave Differentiators

LCX Car WashesBlueWave’s car washes are long conveyor express (LCX) facilities. LCX’s often dominate the market, displacing all but a few full-service car washes. Compelling value differentials:• A full-service car wash needs 20 people to wash 50 cars in an

hour. An LCX with only 2 people can wash 150 cars in an hour, and get the cars as clean and as dry as a full service wash.

• Full service wash takes 15 to 25 minutes, and typically costs the consumer $15 to $25, an LCX produces a clean, dry car exterior in less than 3 minutes.

• Customer does not get out of the car during the process. Upon exiting the car wash, the customer is offered free vacuums when he or she wants to take the time to clean the inside of the car.

Addresses Pent up Demand • Over 200 million consumer owned cars in America. According to

research done by the International Car Wash Association, fewer than half of those cars are washed in a professional car wash (they are washed in their owners’ driveways or not at all).

• Reasons for home washing: concerns about price and damage to the car’s finish.

BlueWave addresses the price issue: just$6.00 for a clean, dry car. It also offers a car wash that is safer for a car’s finish than hand-washing and guarantees against damage. BlueWave is winning over large numbers of customers now using full service, gas station, and self-service car washes, as well as large numbers of home washers.

Environmentally Responsible RetailerRequires about 25% of the water that is used for home washing. • Most of the water is reclaimed/reused• 100% biodegradable soaps and waxes• Qualified under International Carwash Association™ as a member

of the WaterSavers program: requires that a car wash use a specific amount of fresh water per wash, reclaim or recycle its treated water for future wash cycles and discharge effluent water to a sanitary location. Locations are required to verify that they meet these requirements and maintain verification records on each car wash site, and have their site assessed annually.

Professional Model Car washing is a “mom-and-pop” business today. There are nearly 100,000 car washes in the United States. 90% are owned by individuals or entities that own 3 or fewer and most owners of car washes consider themselves to be car wash operators. In contrast, BlueWave™ considers itself first and foremost to be a retailer.

Over the next five years, discount LCX’s are predicted to be the fastest growing segment of the industry. The leaders of this growth will be emerging companies with sound, well-financed, retail growth strategies and strong convenience retail real estate and operating skills.

Strong ManagementManagement team has a significant and deep understanding of all assets of real estate acquisition, development and operations. Experience includes all asset classes of real estate including retail and specifically car wash operations. The company is organized around a state-of-the-art technology infrastructure. The company has a strong private equity base and excellent capital resources.

Excellent Business in Recessionary EconomyBlueWave sells exceptional car washes. Its value proposition is compelling, especially in a recession, and the service it offers supports peoples’ renewed interest in taking care of the cars they have.

Read more: www.bluewaveexpress.com/

BLUE WAVE | 11

Regional MapHarlingen TX Location

Part of the Brownsville Harlingen MSA

BLUE WAVE

HARLINGEN

BLUE WAVE | 12

HARLINGEN, TX OVERVIEW

Harlingen, Texas is located at the crossroads of the Rio Grande Valley in South Texas, along the U.S./Mexico border. Harlingen’s central location in the Rio Grande Valley (with a population of 1.2 million) has allowed it to share in the area’s growth and prosperity. It will also benefit greatly from the newly opened Durango-Mazatlan Highway that traverses east-west across Northern Mexico.

Harlingen is a town of an estimated population of 74,950, with a strong reputation as a trade and transportation center, home to an international airport, a port, an international bridge, a state college and huge medical complex.

Harlingen is also the second largest city in Cameron County and the third largest in the Rio Grande Valley. The city covers more than 34 square miles (88 km2) and has an elevation of 38 feet (11.6m) above sea level.

Harlingen offers all the advantages of a Texas location with close proximity to Northern Mexico. Major firms like United Healthcare, Dish Network, Penske Logistics, United Launch Alliance, Panasonic, Cardone Industries and many others have established profitable and productive homes in Harlingen.

The Brownsville-Harlingen metropolitan area had a 2010 population of over 415,000.

Location & Demos

2013 HOUSEHOLD INCOMES

1-Mile 3-Mile 5-Mile

2010 6,612 58,624 89,1692013 6,500 58,915 90,3732018 6,491 60,481 93,541

1-Mile 3-Mile 5-Mile

Average $28,868 $47,203 $50,472Median $17,716 $30,292 $32,202

POPULATION

Employer # of Employees*Valley Baptist Medical Center 3,234Harlingen CISD 1,684Vicki Roy Home Health 975Dish Network 840*Approximate

TOP EMPLOYERS IN HARLINGEN

BLUE WAVE | 13

Copyright © 2015 [Capital Pacific Real Estate Brokerage Company]IN ASSOCIATION WITH TX LICENSED BROKER: David W. Hardesty, Hardesty Retail Group(972) 233-5300 | david@hardestyrealty.net14228 Midway Rd, Suite 204, Dallas, TX 75244

CHRIS KOSTANECKI ck@capitalpacific.com | (415) 274-2701 CA BRE#: 01002010

CHRIS PETERS cpeters@capitalpacific.com | (415) 274-2703 CA BRE#: 01339983

ZEB RIPPLE zripple@capitalpacific.com | (415) 274-2702CA BRE#: 01242540

THE CAPITAL PACIFIC EXPERIENCE - OUR DAILY COMMITMENT TO OUR CLIENTS

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10-10-11

B efore 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.

Information About Brokerage Services

Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records.

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:

(1) shall treat all parties honestly;

(2) may not disclose that the owner will accept a price less that 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.

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.

Buyer, Seller, Landlord or Tenant Date

Texas Real Estate Brokers and Salespersons are licensed and regulated by the Texas Real Estate Commission (TREC). If you have a question or complaint regarding a real estate licensee, you should contact TREC at P.O. Box 12188, Austin, Texas 78711-2188 , 512-936-3000 (http://www.trec.texas.gov)

TREC No. OP-K