SOUTHRIDGE VILLAGE

OFFERING MEMORANDUM

2434 s interstate 35 e |denton, TX 76205

™

TABLE OF CONTENTS

Executive summary

area overview

property overview

financial overview

tenant overview

4

6

14

18

24

EXCLUSIVELY LISTED BY

Scott Henard Johnny blue craigKYLE MATTHEWSSVP & REGIONAL DIRECTOR

SHOPPING CENTERSASSOCIATESHOPPING CENTERS

scott .henard@matthews.comDIR (214) 692-2046MOB (972) 998-7373LIC # 684841 (TX)

johnnyblue.craig@matthews.comDIR (214) 692-2068MOB (850) 509-8733LIC # SL3331383 (FL)

LIC # 678067

BROKER OF RECORD

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investment highlights• Strong Returns for Potential Investor – Paired with market financing, a potential investor’s year 1 cash on cash return will be over 17%

• Impressive NOI growth – 3-year growth of 26% and 5-year growth of over 36%

• New roof in 2017

• Strong historical occupancy – Synergistic tenant line-up consisting of mostly medical tenants, the anchor of which has had a long successful operating history since 1992

• Impeccable Location - Strategically positioned with great visibility off I-35 E that sees ±100,000 cars per day in each direction

• Located across the freeway from the Golden Triangle Mall, a dominant regional mall that just underwent an extensive remodel by MG Herring and Cencor Realty in 2014

• University Town - Denton is home to the University of North Texas (UNT) and Texas Woman’s University, with a combined enrollment of over 50,000 students

• Potential PAD site Development – Ability to add a pad site in the parking lot can significantly increase the NOI by over $85K

• Directly adjacent to a major development of Buc-ee’s Travel Center’s new prototype - will be developed on 16 acres featuring 96 gas pumps drawing in large amounts of tourists

• Strong Demographics – The surrounding 3-mile population has grown over 50% from 2000-2010, 14% from 2010-2016 and is set to grow another 9% from 2016-2021

Executive summary

OFFERING SUMMARYMatthews Real Estate Investment Services is pleased to present to qualified investors the fee simple sale of Southridge Village Shopping Center. Southridge Village is located in the city of Denton, TX, a strong growing suburb in the Dallas-Fort Worth MSA. Positioned directly off I-35 E, which sees over 200,000 cars per day, this asset provides an impressive investor return with an equally impressive location that has short-term upside. The site is located directly across the interstate from the Golden Triangle Mall, a recently renovated dominant regional mall, and is surrounded by national tenants that include Target, Walmart, Home Depot, Bed Bath and Beyond, Barnes & Noble, Hobby Lobby and more. Further, the investment is located next door to the new 16-acre development of the Buc-ee’s Travel Center Prototype which will feature 52,000 square feet and around 96 gas pumps and is set to deliver in early 2018. There are also several new multifamily complexes being developed next to the center. Paired with the possibility of the future owner to add an additional pad site in front of the center, this investment provides an owner with strong returns with immediate upside.

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Price $6,999,999

Property Size (NRA) 37,203

Price Per SF $188

Year Built/Renovated 1984/1987

Current Occupancy 100%

Investment Returns

Cap Rate - Yr 1 8.82%

Cash on Cash - Yr 1 17.23%

Debt

Debt $4,899,999

Required Equity $2,100,000

Operating Data

Effective Gross Income $860,901

Operating Expenses $243,255

Net Operating Income - Yr 1 $617,646

Capital Reserves - Yr 1 $10,500

Cash Flow Before Taxes - Yr 1 $594,542

Major Tenants Square Footage

Wol+Med Neck and Back Rehabilitation Clinic 17,417

Wol+Med Physician's Clinic 5,000

Pet Hospital 3,836

American Pharmacy 3,200

FINANCIAL SUMMARY

Principle Loan Amount $4,899,999

Loan to Value 70%

Interest Rate 4.75%

Term 10 Years

Amortization 30 Years

Annual Debt Service - IO for 1 year $232,750

Annual Debt Service - Amortized $306,729

Debt Assumptions

Loan quote provided by Barrington Capital based on market conditions at this time. Actual rates and terms will vary based on market conditions at closing. Please contact Brian Krebs or Mike McCabe at the information below: Brian Krebs: (949) 777-5988 or brian.krebs@barringtoncapcorp.comMike McCabe: (310) 919-5793 or michael.mccabe@barringtoncapcorp.com

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property overview

Property Name Southridge Village Shopping Center

Address 2436 S I-35 E

Location Denton, TX 76205

Cross Street Lillian Miller Pkwy

Square Footage (GLA) 37,203

Land Area 163,092 SF

APN(s) R128441

Year Built / Renovated 1984/1987

Type of Ownership Fee Simple

Zoning RCR-2 Regional Center Residential

Number of Stories 1

Parking Spaces 267

Parking Ratio 7.71 : 1,000

physical description

parcel map

Traffic CountsS Interstate 35 E ±102,000 ADTLillian Miller Pkwy ±17,000 ADT

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site plan

#35

0#346

#34

0#338 #360 #370

#37

6 #390

INTERSTATE 35 SERVICE ROAD

Future

Pad

Site

#336

tenant roster

Unit Tenant Square Footage

336 Wol+Med Neck and Back Rehabilitation Clinic

17,417

338 Wol+Med Physician’s Clinic 5,000

340 Planned Parenthood 1,760

346 Choice Medical 2,700

350 Fantastic Sams 1,190

Unit Tenant Square Footage

360 American Pharmacy 3,200

370 Pet Hospital 3,836

390 Edward D Jones 2,100

Outparcel Future Pad Site

Total 37,203

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SUBJECT PROPERTY

tenant map

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BUC-EE’S Next door to the subject property is the development of a Buc-ee’s gas station. The property is expected to open sometime at the end of 2017 or early 2018. The addition of Buc-ee’s in Denton will bring more jobs and tourists. With only select stores throughout Texas, the hype behind each new location is colossal.

Buc-ee’s is a chain of convenience stores located in the Central, Gulf Coast, and North Coast region of Texas. Buc-ee’s offers products found at most convenience stores such as fuel, cigarettes, tobacco, chips, drinks, and soft drinks at their smaller neighborhood stores. Travel centers include a deli, coffee shop, exterior tunnel car washes, Texas-themed specialty gifts and food, and products catering to hunters and river rafters. All Buc-ee’s are open 24 hours per day, 365 days per year.

Everything about Buc-ee’s is “Texas big”. The gas station is known for having large format stores around 50,000 square feet and around 90 gas pumps making it easy for travelers to get in and out. It is rare that you should ever wait in line to fill up your tank. This place has everything you can imagine from soda and snacks to suite cases and pajamas.

Read more about the development here! (click)

BUC-EE’S DEVELOPMENT

SUBJECT PROPERTY

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Golden Triangle Mall

Property Name Golden Triangle Mall

Location IH-35 & Loop 288, Denton, TX

Built 1980

Renovated 2015

Total GLA 784,200 SF

Occupancy 97%

2015 Renovations• New exterior facade

• Redesign and enhancement of mall entrances

• New exterior landscaping and graphics

• Renovation of mall common area

• Opening of existing ceiling creating more natural light

• Lighting additions

• New amenities including furniture, interior landscape, fixtures and directories

• Tenant storefront upgrades

• New property graphics program

• Free Wi-Fi throughout

• Remodeled children’s play area

Anchor tenants

Over 90 Specialty stores & restaurants

Outparcels

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PROXIMITY TO Golden Triangle Mall

SUBJECT PROPERTY

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POPULATION 1-Mile 3-Mile 5-Mile

2022 Projection 9,853 90,839 170,216

2017 Estimate 8,963 82,469 155,296

2010 Census 7,687 70,313 133,513

2000 Census 5,544 46,800 98,624

Growth 2017 - 2022 9.93% 10.15% 9.61%

Growth 2010 - 2017 16.60% 17.29% 16.32%

Growth 2000 - 2010 38.65% 50.24% 35.38%

HOUSEHOLD 1-Mile 3-Mile 5-Mile

2022 Projection 3,985 33,091 62,527

2017 Estimate 3,643 30,104 56,979

2010 Census 3,166 25,906 49,024

2000 Census 2,198 17,782 36,923

Growth 2017 - 2022 9.39% 9.92% 9.74%

Growth 2010 - 2017 15.08% 16.21% 16.23%

Growth 2000 - 2010 43.99% 45.68% 32.77%

Demographics

INCOME 1-Mile 3-Mile 5-Mile

2017 Est. Average Household Income $76,652 $72,658 $76,261

local map

regional map

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On the seat of Denton County, Denton holds a small-town vibe while being just a short drive away from the big city of Dallas. Denton is a family-friendly college town with a downtown square bustling with shops, eateries, entertainment venues and events.

With two universities and more than 50,000 students, two hospitals, an industrial district, and a lively downtown and entrepreneurial community, Denton is one of the top 25 fastest-growing cities in the country and was ranked the No. 1 Best Small Town in America by Rand McNally and USA Today in 2012.

DENTON, TEXaS

area overview

denton ears gold-level rankingIn prominent scenic city certification

First recognized as a Bronze-level City in 2014, the City increased its ranking two levels due to improvements in codes, ordinances, and standards related to aesthetics and community appearance. Scenic Texas cited the following elements as key in earning this upgraded recognition: Denton’s Main Street Program, strong unity of design standards, innovative waste management efforts, and emphasis on public parks, trails, and green spaces.

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Peterbilt motors TEXAS HEALTH PRESBYTERIAN HOSPITAL DENTON

Sally Beauty Company, Inc

DENTON TOP EMPLOYERS

Located in Denton, The University of North Texas is one of the nation’s largest universities with 101 bachelor’s, 82 master’s and 38 doctoral degree programs. 62 of the academic programs raked among the nation’s top 100. UNT is a major public research university committed to advancing educational excellence. The university is one of Denton’s largest employers with more than 10,000 full and part-time employees.

The University of North Texas generates an economic impact of $1.65 billion in the Dallas-Fort Worth area every year. Additionally, due to capital spending coming from UNT, the DFW area sees another $183.9 million in economic activity. UNT supports and drives the growth and programs of the communities and businesses in North Texas with its 38,000 students, 10,000 faculty and staff and 263,000 alumni living in the area.

THE UNIVERSITY OF NORTH TEXAS

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Dal las is a c i ty where big ideas meet big opportuni ty. As with any other c i ty in the Lone Star State, Dal las of fers a hearty port ion of wor ld famous art , innovated eater ies and bigger than l i fe personal i ty. The ci ty revolves around a bust l ing downtown area that expands through an assortment of neighborhoods and commercial centers , supported by a network of f reeways that exceeds almost any other c i ty. I t boasts the largest urban arts distr ict in the nat ion; where you’d be more l ikely to come across a world c lass exhibi t than a broken pair of chaps. I ts past and present is r ich in cul ture, an Al l -American c i ty that was bui l t on legends.

The central core of Dal las has exper ienced a steady and s igni f icant growth that speaks to i ts h ighly divers i f ied economy. I t has become a hub for real estate and business, establ ishing i tsel f as one of

the largest concentrat ions of corporate headquarters for publ ic ly t raded companies such as American Air l ines, Neiman Marcus, Kimberly-Clark, JCPenney, ExxonMobi l and many others. In 2015, Forbes reported that Dal las is “ the best place for business and careers” in Texas. I t ’s the perfect blend of big c i ty l iv ing and rust ic southern charm.

The Dal las economy is expected to grow over the next couple of decades making i t the perfect t ime to not only invest in Dal las real estate, but a lso relocate. As the 9th largest c i ty in the country, Dal las has something for everyone. I t combines c lashing images of the c i ty skyl ine and cowboy vibes. Yet , the c i ty of Dal las descr ibes i tsel f best with the motto: “Big Things Happen Here.”

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DALLAS-Fort Worth MSA

The Dallas-Fort Worth Metroplex is the largest metropolitan area in the South, and fourth largest in the United States. It is a center for sporting events, tourism and manufacturing. Dallas and its suburbs have one of the highest concentrations of corporate headquarters in the United States. Dallas is a center for corporate America. Because of its central location relative to the rest of the United States, Dallas is a popular convention site and site for many corporate headquarters and home to 21 Fortune 500 companies. Business management and operations is a major part of the economy. The Metroplex also contains the largest Information Technology industry base in the state. On the other end of the business spectrum, and on the other side of the Metroplex, the Texas farming and ranching industry is based in Fort Worth.

4thLargest City

7.1Million People

21Fortune 500 Companies

4Major Sports

Teams

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financial overview

UNIT TENANT Lease Start Lease End SF % of GLAContract Rental Rate Rent PSF

Increases OptionsYear Month Year Month

336Wol+Med Neck and Back

Rehabilitation ClinicNov-97 Apr-21 17,417 46.8% $261,255 $21,771 $15.00 $1.25

May-18May-19 May-20

$15.45$15.91 $16.39

338Wol+Med Physician's

ClinicNov-97 Apr-21 5,000 13.4% $119,742 $9,978 $23.95 $2.00

May-18May-19 May-20

$24.67 $25.41 $26.17

340 Planned Parenthood Dec-96 Apr-19 1,760 4.7% $32,560 $2,713 $18.50 $1.54 Apr-18 $19.75One 5-Year

Option (FMV)

346 Choice Medical Apr-15 Apr-20 2,700 7.3% $47,250 $3,938 $17.50 $1.46 Apr-18Apr-19

$18.50 $19.50

350 Fantastic Sams Dec-12 MTM 1,190 3.2% $18,000 $1,500 $15.13 $1.26 None

360 American Pharmacy Jan-15 Jan-20 3,200 8.6% $60,800 $5,067 $19.00 $1.58 Jan-19 $20.00

370 Pet Hospital Oct-15 Sep-25 3,836 10.3% $77,676 $6,473 $20.25 $1.69

Oct-17 Oct-18 Oct-19 Oct-20 Oct-21 Oct-22 Oct-23 Oct-24

$21.25 $22.25 $23.50 $24.75 $26.00 $27.25 $28.75 $30.25

390 Edward D. Jones Apr-15 Apr-18 2,100 5.6% $32,556 $2,713 $15.50 $1.29

Outparcel Speculative (Outparcel) Jun-18 May-28 $85,000 $7,083

Occupied Totals - In Place 37,203 100.0% $649,838 $54,153 $17.47 $1.46

Totals 37,203 100.0% $649,838 $54,153 $17.47 $1.46

rent roll

Notes:1. Analysis assumes an outparcel building is constructed and begins paying rent of $85,000 each year, increasing 3.0% annually in month 13. 2. Fantastic Sams is month to month. Analysis assumes the tenant remains at the center through 12/18 at current terms.

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Lease Expiration Y e a r E n d i n g S q . F t. A n n u a l % o f T o t a l A g g r e g a t e % o f T o t a l

1 Jul-18 2,100 5.64% 5.64%

2 Jul-19 2,950 7.93% 13.57%

3 Jul-20 5,900 15.86% 29.43%

4 Jul-21 22,417 60.26% 89.69%

5 Jul-22 0 0.00% 89.69%

6 Jul-23 0 0.00% 89.69%

7 Jul-24 0 0.00% 89.69%

8 Jul-25 0 0.00% 89.69%

9 Jul-26 3,836 10.31% 100.00%

10 Jul-27 0 0.00% 100.00%

Total 37,203 100.00%

10-YEAR ROLLOVER

20.00%

60.00%

100.00%

40.00%

80.00%

0.00%1 2 3 4 5

Year

ANNUAL % OF TOTAL

Total6 7 8 9 10

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Summary Tenant ProfileI N C O M E D I S T R I B U T I O N - I N P L A C E

T e n a n t N a m e I n P l a c e R e n t % o f I n c o m e E x x p i r a t i o n D a t e

Anchor/Junior Anchors

Wol+Med Neck and Back Rehabilitation Clinic $261,255 40.20% May-21

Wol+Med Physician's Clinic $119,742 18.43% May-21

Subtotal $380,997 58.63%

Shops

Planned Parenthood $32,560 5.01% Apr-19

Choice Medical $47,250 7.27% Apr-20

Fantastic Sams $18,000 2.77% Dec-18

American Pharmacy $60,800 9.36% Jan-20

Pet Hospital $77,676 11.95% Oct-25

Edward D. Jones $32,556 5.01% Apr-18

Subtotal $268,842 41.37%

Total $649,838 100%

Shops - 41%

Anchors - 59%

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cash flow Year 1 Year 2 Year 3 Year 4 Year 5 For the Years Ending Jul-2018 Jul-2019 Jul-2020 Jul-2021 Jul-2022 ___________ ___________ ___________ ___________ ___________ Potential Gross Revenue Base Rental Revenue $746,556 $780,887 $815,529 $851,787 $883,031 Absorption & Turnover Vacancy (85,000) (73,351) ___________ ___________ ___________ ___________ ___________ Scheduled Base Rental Revenue 661,556 780,887 815,529 778,436 883,031 Expense Reimbursement Revenue Landscaping & Groundskeeping 8,190 8,514 8,803 8,076 9,158 Management Fees 25,000 29,339 30,995 26,201 33,265 Repairs & Maintenance 17,714 18,418 19,040 17,468 19,808 Utilities 29,329 $30,495 $31,522 $28,924 $32,797 Property Tax 146,528 $152,334 $157,479 $144,497 $163,842 Property Insurance 8,712 9,059 9,364 8,591 9,742 ___________ ___________ ___________ ___________ ___________ Total Reimbursement Revenue 235,473 248,159 257,203 233,757 268,612 Sign Income 1,200 1,236 1,273 1,311 1,351 ___________ ___________ ___________ ___________ ___________ Total Potential Gross Revenue 898,229 1,030,282 1,074,005 1,013,504 1,152,994 General Vacancy ($37,328) ($39,044) ($40,776) ($42,589) ($44,152) ___________ ___________ ___________ ___________ ___________ Effective Gross Revenue $860,901 991,238 1,033,229 970,915 1,108,842 ___________ ___________ ___________ ___________ ___________ Operating Expenses Landscaping & Groundskeeping 8,460 8,629 8,802 8,978 9,157 Management Fees 25,827 29,737 30,997 29,127 33,265 Repairs & Maintenance 18,300 18,666 19,039 19,420 19,809 Utilities 30,300 30,906 31,524 32,155 32,798 Property Tax 151,368 154,395 157,483 160,633 163,846 Property Insurance 9,000 9,180 9,364 9,551 9,742 ___________ ___________ ___________ ___________ ___________ Total Operating Expenses 243,255 251,513 257,209 259,864 268,617 ___________ ___________ ___________ ___________ ___________ Net Operating Income 617,646 739,725 776,020 711,051 840,225

Debt Service $232,750 $306,729 $306,729 $306,729 $306,729Cash Flow after Debt Service/Leasing Costs/Capital Reserves $361,792 $416,980 $410,730 $126,884 $527,215Cash on Cash Return 17.23% 19.86% 19.56% 6.04% 25.11%Cap Rate 8.82% 10.57% 11.09% 10.16% 12.00%

Investment Returns

1. Analysis assumes an outparcel building is constructed and begins paying rent of $85,000 each year, increasing 10.0% mid term month 13.

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Analysis Period

Cash Flow Projection Begin Date June 1, 2017

Holding Period for Net Present Value 5 Years

Area Measures

Net Rentable Area in SF 37,203

General Projection Assumptions

General Expense Growth per Annum 2.00%

Real Estate Tax Growth per Annum 2.00%

Market Rent Growth per Annum 4.00%

Exit Cost of Sale 1.00%

Leasing Assumptions

Market Rent $15.00 - $26.00/SF/Yr

Renewal Probability 75%/100%

Downtime 6-12

Tenant Improvement Allowance $15/SF

Leasing Commissions 6.00%

Free Rent None

Escalations Annual 3% Increases/10% Mid Term Increase

Operating Expenses NNN

Term 5 Years

assumptions

Notes:

Market Leasing Assumptions excludes outparcel pad.

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tenant overview

Company Name Wolmed

Parent Company Trade Name Ed Wolski MD PA

Ownership Non-Public

No. of Locations 2

No. of Employees (all) ±50

Headquartered Denton, TX

Website www.wolmed.com

Year Founded 1981

WolMed

WOLMED provides their service and care at two locations in North Texas. They specialize in federal workers comp injuries, Texas workers comp injuries, personal injuries, and auto injuries. The company treats patients who were hurt on the job while working for private companies in the Texas Workers Compensation system as well as people who were injured at work for federal agencies such as the United States Postal Service and the FBI.

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American Specialty Pharmacy

Southridge Animal Hospital

American Specialty Pharmacy is known for being more than just a typical pharmacy. They are dedicated to every customer. The goal of the company is to continuously optimize their services for the benefit of the patient and the patient’s health. ASP has 19 locations throughout the United States and 4 additional locations in the works.

Southridge Animal Hospital is a full-service veterinary medical facility in Denton, Texas. The goal of the company is to provide the best possible medical, surgical, and dental care for their patients. They are committed to promoting responsible pet ownership, preventative health care and heal-related educational opportunities for their clients.

Company Name Southridge Animal Hospital

Primary Industry Veterinary Services

Ownership Non-Public

No. of Locations 1

No. of Employees ± 10

Headquartered Denton, TX

Website www.southridgeanimalhospital.com

Year Founded 1996

Company Name American Specialty Pharmacy Inc.

Primary Industry Pharmacies and Drug Stores

Ownership Non-Public

No. of Locations 19

No. of Employees ± 130

Headquartered Farmers Branch, TX

Website www.americanspecialtypharmacy.com

Year Founded 2010

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of the Southridge Village located at 2434 S Interstate 35 E, Denton, TX 76205(“Property”) . I t has been prepared by Matthews Retai l Advisors. This Offer ing Memorandum may not be al l -Ver or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

SOUTHRIDGE VILLAGE2434 s interstate 35 e |denton, TX 76205

™

JOHNNY BLUE CRAIGASSOCIATE

JOHNNYBLUE.CRAIG@MATTHEWS.COMDIR (214) 692-2068MOB (850) 509-8733

Scott Henard

SVP & REGIONAL DIRECTOR

SCOTT.HENARD@MATTHEWS.COMDIR (214) 692-2046MOB (972) 998-7373

KYLE MATTHEWSBROKER OF RECORD

LIC 678067

11-2-2015

Information About Brokerage ServicesTexas law requires all real estate license holders to give the following informaƟon about

brokerage services to prospecƟve buyers, tenants, sellers and landlords.

TYPES OF REAL ESTATE LICENSE HOLDERS: .• A BROKER is responsible for all brokerage acƟviƟes, 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 informaƟon about the property or transacƟon received by the broker; • Answer the client’s quesƟons and present any offer to or counter-offer from the client; and • Treat all parƟes to a real estate transacƟon 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 wriƩen lisƟng to sell or property management agreement. An owner's agent must perform the broker’s minimum duƟes above and must inform the owner of any material informaƟon about the property or transacƟon known by the agent, including informaƟon 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 wriƩen representaƟon agreement. A buyer's agent must perform the broker’s minimum duƟes above and must inform the buyer of any material informaƟon about the property or transacƟon known by the agent, including informaƟon disclosed to the agent by the seller or seller’s agent.

AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parƟes the broker must first obtain the wriƩen agreement of each party to the transacƟon. The wriƩen agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligaƟons as an intermediary. A broker who acts as an intermediary:

• Must treat all parƟes to the transacƟon imparƟally and fairly; • May, with the parƟes' wriƩen 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 instrucƟons of each party to the transacƟon. • Must not, unless specifically authorized in wriƟng to do so by the party, disclose:

ᴑ that the owner will accept a price less than the wriƩen asking price; ᴑ that the buyer/tenant will pay a price greater than the price submiƩed in a wriƩen offer; and ᴑ any confidenƟal informaƟon or any other informaƟon that a party specifically instructs the broker in wriƟng 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 transacƟon 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 duƟes and responsibiliƟes to you, and your obligaƟons under the representaƟon 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 noƟce is being provided for informaƟon purposes. It does not create an obligaƟon for you to use the broker’s services. Please acknowledge receipt of this noƟce below and retain a copy for your records.

Licensed Broker /Broker Firm Name or Primary Assumed Business Name

License No. Email Phone

Designated Broker of Firm License No. Email Phone

Licensed Supervisor of Sales Agent/Associate

License No. Email Phone

Sales Agent/Associate’s Name License No. Email Phone

Regulated by the Texas Real Estate Commission

Buyer/Tenant/Seller/Landlord Initials

InformaƟon available at www.trec.texas.gov IABS 1-0

Date

Kyle Matthews/Matthews Retail Group Inc. 678067 kyle.matthews@matthews.com (310) 919-5757

Kyle Matthews 678067 kyle.matthews@matthews.com (310) 919-5757