1140 W. 2nd St. Mercedes, TX 78570

FOR SALEVACANT INDUSTRIAL WAREHOUSE/OFFICE

OFFERING MEMORANDUM

TABLE OF CONTENTSOffering Summary

Property Overview

Market Overview

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We obtained the information in this offering package from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors,omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or futureperformance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.

• Offering Summary

• Property Information

• Property Location

• Investment Highlights

• Parcel Map and Tax Assessment

• Photographs

• Floor Plan

• Aerial Site Plan

• Local Aerial

• Regional Aerial

• Mercedes, TX Overview

• Demographics

Eva HortonManaging DirectorO) 713.599.5188C) 678.447.4041

ehorton@ngkf.com

Hook McCulloughSenior Managing Director

O) 949.608.2046C) 714.743.1482

hmccullough@ngkf.com

FOR ADDITIONAL INFORMATION, PLEASE CONTACT BROKER

REPRESENTATIVES:

NEWMARK KNIGHT FRANK1700 Post Oak Blvd., 2 BLVD Place, Suite 250

Houston, TX 77056713.626.8888 | www.ngkf.com

Albert SpiersAssociate

O) 713.599.5116C) 713.907.4110

albert.spiers@ngkf.com

2

Albert GarzaLocal Representative

Broker/OwnerFirst Choice RealtyC) 956.212.2553

albertgs1@hotmail.com

INTERESTOFFERED:

100% Fee Simple

OFFERING PRICE: $359,000

OFFER SUBMISSION PROCEDURE:

Seller and Agent will assess the qualification of any party submitting a non-binding letter of intent in accordance with Seller’s objectives. In making thisassessment, Seller will consider a number of factors including, but not limitedto, price, time frame of closing, and perceived ability of the party to completethe transaction.

BID SUBMISSIONREQUIREMENTS:

All submissions must be faxed, emailed or hard copy delivered. Offer shouldbe submitted in the form of a non-binding letter of intent and should specifythe following:

Offering Price Due Diligence Period Closing Earnest Money Deposit Contingencies (if any) References Documentation of previously completed transactions Sources of funds Any other information having a direct bearing on investor’s ability to close

the proposed transaction

BROKER CONTACT:

Eva HortonManaging DirectorO) 713.599.5188C) 678.447.4041

ehorton@ngkf.com

Hook McCulloughSenior Managing Director

O) 949.608.2046C) 714.743.1482

hmccullough@ngkf.com

OFFERING SUMMARY

Albert SpiersAssociate

O) 713.599.5116C) 713.907.4110

albert.spiers@ngkf.com

Newmark Knight Frank’s Southwest CapitalMarkets and Investment Sales team inHouston, as exclusive agent, is pleased tooffer the opportunity to acquire 1140 W. 2nd

St. – a vacant, single-tenant industrialwarehouse/ office property within HidalgoCounty in Mercedes, TX. Formerly occupiedby Rio Tex Wholesale Meat Processing DivLLC, a meat packing and processing plant,the property features a total rentable area ofapproximately 14,274 SF. 1140 W. 2nd St.presents investors and owner/users with theunique opportunity to acquire a sizeablewarehouse/office asset on a commuterthoroughfare near retail amenities that wouldprove attractive to buyers and prospectivetenants near Mercedes’ impressive BusinessDistrict.

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Albert GarzaBroker/Owner

First Choice RealtyC) 956.212.2553

albertgs1@hotmail.com

Market OverviewPROPERTY OVERVIEW

GENERAL INFORMATIONPROPERTY ADDRESS: 1140 W. 2nd St.

Mercedes, TX 78570

COUNTY: Hidalgo County

SUBMARKET: Outlying Hidalgo County

PARCEL ID: E2600-00-00A-0006-00

PROPERTY TYPE: Vacant single-tenant industrial warehouse/ office building

TRAFFIC COUNTS: 10,800 CPD on W. 2nd St. and Maryland Ave (2016 estimate)

2017 EST. POPULATIONWITHIN 3 MILES:

27,290

PROPERTY INFORMATION

PROPERTY INFORMATIONBUILDING SIZE: +/- 1,599.81 SF Office

+/- 5,832.50 SF Warehouse+/- 6,841 SF Cooler/Freezer SpaceApproximately 14,274 SF

BUILDINGS: 6, including 3 warehouses and 3 office buildings

ACRES: 0.6 Acres (26,049 SF)

FLOORS: 1 floor

PARKING: Limited parking

YEAR BUILT: 1925, with additions made in 1971 and 2014

INGRESS/EGRESS: Available from the two (2) points of access via W. 2nd St., and S. Colorado Ave

OCCUPANCY: 0%

ZONING: B - Business

DOCKING DOORS: 2

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PROPERTY OVERVIEW PROPERTY LOCATION

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PROPERTY OVERVIEW INVESTMENT HIGHLIGHTS

Fabulous vacant single tenant owner/user opportunity on a generous 0.6 AC parcel site.

Close proximity to the Mercedes Business District’s national retailers.

Located on a commuter thoroughfare, with approximately 10,800 CPD on W. 2nd St. and Maryland Ave (2016 estimate).

Immediate area features primarily residential development and retail establishments.

National credit tenants located 0.2 miles east on W. 2nd St.

Easy access to Expwy 83/ Interstate 2 via S Vermont Ave.

The Rio Grande Valley Premium Outlets, a 578,000 SF outdoor shopping center with 140 stores, are only 4 miles northeast of the site.

Population and number of households within a 1 mile radius is expected to grow between 2017 to 2022.

Approximately 200 feet of prime frontage on the south side of 2nd St.

Ingress and egress is available from the 2 points of access via W 2nd St., and S Colorado Ave.

Two docking doors are available.

Great signage opportunity. 6

PARCEL MAP & TAX ASSESSMENT

ACCOUNT

Property ID 163076

Parcel Number E2600-00-00A-0006-00

Type Real

Legal Description EBONY PARK S5.5’ LOT6; ALL LOTS 7 & 8; LOTS 19-22 & S5.5’ LOT 23 BLK A

LOCATION

Address W. 2nd (Bus 83) St., TX

Neighborhood Ebony Park

Neighborhood CD E260000

Map ID CMC VOL 2 PG 27

DEED HISTORY (LAST 3 DEED TRANSACTIONS)Deed Date Type Description Deed Number Grantee Grantor

4/12/2018 STD SUB TRUSTEE DEED 2906222RIO TEX WHOLESALE MEAT PROCESSING DIV LLC

12/23/2013 WD WARRANTY DEED 2473925RIO TEX WHOLESALE MEAT PROCESSING DIV LLC

GARCIA JOSE ARTURO & ALEJANDRA E ALONSO

3/28/2012 WDVWARRANTY DEED/ VENDORS LIEN 2294356

GARCIA JOSE ARTURO & ALEJANDRA E ALONSO WILLSON BETHA V

LAND# Type Description Acres Sqft Eff Front Eff Depth Market Value Prod. Value1 L LOT 0.1951 8,500 0.00 0.00 $30,175 $02 L LOT 0.2192 9,550 0.00 0.00 $33,903 $03 L LOT 0.1837 8,000 80.00 100.00 $28,400 $0

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PROPERTY OVERVIEW

TAX ASSESSMENT

TAXING JURISDICTIONEntity Description Tax Rate Appraised Value Taxable Value Estimated TaxCAD APPRAISAL DISTRICT 0.0000 $488,536 $488,536 $0.00

CMC CITY OF MERCEDES 0.7450 $488,536 $488,536 $3,639.59

DR1 DRAINAGE DISTRICT #1 0.0951 $488,536 $488,536 $464.60

GHD HIDALGO COUNTY 0.5800 $488,536 $488,536 $2,833.51

JCC SOUTH TEXAS COLLEGE 0.1850 $488,536 $488,536 $903.79

R11 ROAD DIST 11 0.0000 $488,536 $488,536 $0.00

SMC MERCEDES ISD 1.3800 $488,536 $488,536 $6,741.80

SST SOUTH TEXAS SCHOOL 0.0492 $488,536 $488,536 $240.36

Total Tax Rate 3.0343

Taxes With Current Exemptions: $14,823.65

Taxes Without Exemptions: $14,823.65

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VALUES(+)Improvement Home site Value $0

(+) Improvement Non-Home site Value $396,058

(+) Land Home site Value $0

(+) Land Non-Home site Value $92,478 Ag / Timber Use Value

(+) Agricultural Market Valuation $0 $0

(+)Timber Market Valuation $0 $0

(=) Market Value $488,536(-) Ag or Timber Use Value Reduction: $0

(=) Appraised Value $488,536

(-) HS Cap $0

(=) Assessed Value $488,536

PROPERTY OVERVIEW

TAX ASSESSMENT

ROLL VALUE HISTORYYear Improvements Land Market Ag Valuation Appraised HS Cap Assessed

2018 $396,058 $92,478 0 488,536 $0 $488,5362017 $165,241 $92,478 0 257,719 $0 $257,7192016 $165,391 $78,150 0 243,541 $0 $243,5412015 $49,025 $78,150 0 127,175 $0 $127,1752014 $44,322 $78,150 0 122,472 $0 $122,4722013 $56,585 $71,350 0 127,935 $0 $127,9352012 $44,322 $54,150 0 98,472 $0 $98,4722011 $0 $25,500 0 25,500 $0 $25,5002010 $0 $25,500 0 25,500 $0 $25,5002009 $0 $25,500 0 25,500 $0 $25,500

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IMPROVEMENT/ BUILDINGImprovement #1: Commercial State Code: F1 Living Area: 4,196 SF Value: $396,058Type Description Class CD Exterior Wall Year Built SQFT

WHS WAREHOUSE 100 – SAV CBK 1971 2,984

OFF OFFICE 50 – SAV CBK 1971 144

OFF OFFICE 50 – SAV CBK 1971 232

FNC FENCE *-SAV 1971 220

WHS WAREHOUSE 100 – SAV CBK 1925 220

OFF OFFICE 50 - SAV CBK 1925 616

FRZ FREEZER 103 – SAV PFM 1925 3,584

STG STORAGE * 1925 170

FRZ FREEZER 103 – SAV 2012 6,808

STG STORAGE * 2014 588

DLD LOADING DOCK 100-SAV 2012 2,640

CON2 CONCRETE 2 *-SAV 2014 1,315

PROPERTY OVERVIEW

PHOTOGRAPHSPROPERTY OVERVIEW

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PHOTOGRAPHSPROPERTY OVERVIEW

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FLOOR PLAN

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PROPERTY OVERVIEW

AERIAL SITE PLAN

W. 2nd Street

S. Colorado Ave.

Francis Ave.

1140 W. 2nd St.

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PROPERTY OVERVIEW

LOCAL AERIAL

Double D Flower Shop

Alicia’s Restaurant

Lord & Mejia's Major Appliances

F&B Mechanic

Segway of South Texas Service Center

& Bill Bunton Auto Supply

Salinas Meat

Market

Casa Del Sol Daycare

W. 2nd Street

S. Colorado Ave.

Francis Ave.

1140 W. 2nd St.

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PROPERTY OVERVIEW

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REGIONAL AERIAL

John F. Kennedy Elementary School

Taylor Elementary

School

Subject Property

Our Lady of Mercy Church

Mercedes Business District

Mercedes City Hall

John F. Kennedy Elementary School

Our Lady of Mercy Church

1140 W. 2nd St.

Mercedes Business District

MercedesCity Hall

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PROPERTY OVERVIEW

All marks displayed on this document are the property of their respective owners.

MARKET OVERVIEW Known as “The Queen City of the Valley,” Mercedes’ population figures reach over 774,000 people, and the MSA

has the 15th largest Hispanic population in the US. Serviced by 9 international bridges and 3 airports, Mercedeswelcomes tourists from Northern Mexico and Midwestern States year round. The area provides a strongconsumer base of 2.3 million within a 50 mile radius supported by a young population. Mercedes offers excellenthigher education opportunities, with 5 universities and colleges within a 40 miles radius. Today, Mercedes servesas the business and retail center of the Rio Grande Valley and is 4 miles from the Progreso International Bridge:this proximity to an international port of entry in conjunction with air, rail and freight services places Mercedes as astrategic crossroads of international trade and commerce.

Employment in the MSA is forecasted to grow at an annual rate of approximately 3 percent over the next twoyears. The largest projected increases in jobs are expected to occur in the education and health services sectorsas a result of the area’s high population growth. Education and health services employment is expected to grow atapproximately 8 percent. Total employment growth rates in the MSA are expected to be supported by the positivespillovers from a well performing Mexican economy and population growth.

Mercedes has a variety of national retail tenants, churches, banks, golf courses, and medical facilities to serve itsresidents and visitors. In November 2006, Mercedes became home to the Rio Grande Valley Premium Outletswhich feature more than 140 designer outlet stores. Located just 0.4 miles south of Interstate 2/ Expressway 83,1140 W. 2nd St. is a short drive from the area’s business district, known as the Downtown District. More than 65diverse businesses provide access to banking, insurance, automotive repair, home décor, medical services,shopping and restaurants. Golf enthusiasts can enjoy the historic Llano Grande Country Club. The Rio GrandeValley Livestock Show and Rodeo is a highly recognized event that draws over 220,000 people a year, and its fairgrounds are also used for monster truck shows, the annual Rio Grande Valley boat and RV shows, and thrillinglive concerts. Finally, healthcare choices are abundant within a 20 minute drive of the city, including Mercedes’Knapp Medical Center, which is considered one of the nation’s top 15 health systems based on quality of care,efficiency and patient satisfaction.

Mercedes is home to Texas’ most unique public art project known as “Las Botas de Mercedes,” as 30 beautifullyhandcrafted 5.5’ tall cowboy boots are dispersed throughout the city, each painted with the insignia of differentcolleges from around the country and Mexico. Overall, Mercedes is a great place to do business and call home.

MERCEDES, TX

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Market OverviewMARKET OVERVIEW DEMOGRAPHICS

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Houston1700 Post Oak Blvd.,2 BLVD Place, Suite 250Houston, TX 77056713.626.8888

Broker of Record:Arispah Elise HoganExecutive Managing DirectorLicense: BROK.0000034214.A-ACT

Eva HortonManaging DirectorO) 713.599.5188C) 678.447.4041ehorton@ngkf.com

Hook McCulloughSenior Managing DirectorO) 949.608.2046C) 714.743.1482hmccullough@ngkf.com

Albert SpiersAssociateO) 713.599.5116C) 713.907.4110albert.spiers@ngkf.com

Local Representative:Albert GarzaBroker/OwnerFirst Choice RealtyC) 956.212.2553albertgs1@hotmail.com

11-2-2015

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 the 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:

ᴑ that the owner will accept a price less than the written asking price;ᴑ that the buyer/tenant will pay a price greater than the price submitted in a written offer; andᴑ 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 Texas law requires all real estate license holders to give the following information about

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

.

Designated Broker of Firm License No. Email Phone

Licensed Supervisor of Sales Agent/Associate

License No. Email Phone

Licensed Broker /Broker Firm Name or Primary Assumed Business Name

License No. Email Phone

Regulated by the Texas Real Estate Commission Information available at www.trec.texas.gov

IABS 1-0

Date Buyer/Tenant/Seller/Landlord Initials

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