NNN INVESTMENT Select Energy Services 4506 I45 SOUTH Gainesville, Texas 76420 IH-35 PREPARED BY: D M Butler Real Estate DAVID M. BUTLER PO Box 130455 713-557-8634 The Woodlands, Texas 77393 david.butler@dmbre.com www.dmbre.com
Select Energy Services 4506 I-35 South Gainesville, Texas 76420 Address: Forntage: Land Area: Stabilized Yard: Building Size: Office space: Clear Height: Roll up Doors: Crane: 4506 I-35 South Gainesville, TX 76420 Price: $1,521,750 Cap Rate: 7.5% 710 ft on west side of IH-35 14.943 Acres Site improved with rock yard for parking and equipment storage 15,546 SF 2,010 SF 26 ft Seven, 16 ft, grade level doors 5 ton overhead crane Highlights - 15 Year Lease (9+ years remaining) - Very Strong, publicly traded guarantor - Attractive 3% rent increases every 2 years - Site has a fully stabilized rock yard for parking and equipment storage - Build-to-Suit completed in 2010 Lease Summary Guarantor: Select Energy Services (NYSE: WTTR) Lease Commencement: August 1, 2011 Primary Term: 15 Years Renewal Options: Two 5-year options Base Rent: $ 9,506.72/month Rent Escalation: 3% every 2 years (including option periods) Lease Type: NNN The Facility The property is an oil and gas services support facility with approximately 60 onsite employees. The facility is leased by Peak Oilfield Services a division of Select Energy Services, LLC (herein after Select Energy ), and is occupied by three (3) Select Energy divisions: Peak Oilfield Services, Impact Energy Services, and Select Well Testing. These divisions provide specialized oilfield operational support including equipment rentals, water transfer, and flow back services.
Financial Summary Rent Summary Rent Schedule Date Monthly Rent August 2011 $8,700.00 August 2013 $8,961.00 August 2015 $9,229.83 August 2017 $9,506.72 August 2019 $9,791.92 August 2021 $10,085.68 August 2023 $10,388.25 August 2025 $10,699.90 Option 1 Date Monthly Rent August 2026 $10,699.90 August 2028 $11,020.90 August 2031 $11,351.53 Option 2 Date Monthly Rent August 2033 $11,692.08 August 2035 $12,042.84 August 2037 $12,404.13
Tenant Profile Select Energy Services Select Energy Services (SES) is an oil and gas service company with operations in the Haynesville, Eagle Ford, Marcellus, Barnett, Fayetteville, Woodford, Granite Wash, Niobrara, and Bakken formations and throughout the Permian Basin. The company is a leading provider of Water Solutions and Environmental, Well Completions and Intervention, and Facilities Engineering and Construction Services. SES was formed in 2008, and the company and its subsidiaries represent decades of experience and an extensive fleet of specialized equipment. These companies have developed an impressive list of customers, representing some of the largest operations in each basin. Select Energy Services is now a public company listed on the New York Stock Exchange after a successful IPO was completed in April, 2017. It trades under ticker symbol WTTR. For more information on Select Energy Services visit: http://selectenergyservices.com/
Area Analysis Shale Natural Gas Natural Gas Over the last 10 years, advances in horizontal drilling techniques have made it possible to profitably access trillions of cubic feet of United States gas resources. Foreign and domestic energy companies are currently allocating billions of dollars to drill and produce natural gas in shale plays throughout the United States. The forward looking outlook for oilfield service companies is subsequently extremely positive as US gas reserves are believed to extend beyond 100 years. The Process Hydraulic fracturing, or fracking, makes it possible to produce oil and natural gas in places where conventional technologies are ineffective. Fracking uses water pressure, sand, and a small amount of chemicals to allow oil and natural gas to escape out of a well. For more information on Shale Natural Gas and Fracking visit: http://www.energyfromshale.org
Area Analysis Barnett Shale The Barnett Shale covers 18 counties in northcentral Texas. The producing region of the Barnett Shale is thought to encompass over 5,000 square miles and span from the city of Dallas to the west and south. The Barnett Shale has already produced over 4.8 trillion cubic feet of natural gas and is expected to produce an additional 40 trillion cubic feet. In the early 2000 s it became economically viable to extract natural gas from the sedimentary rock with horizontal drilling and fracking. There has been a renewed in interest in the Barnett Shale with the discovery of a new pool of oil called the Barnett Shale Combo Play. For More information on the Barnett Shale Play visit: Barnett Shale 101 and the Weatherford Economic Development
Area Analysis Area Description The subject property is located in Gainesville, Texas the county seat of Cooke County, north of Ft. Worth on Interstate 35 and just minutes from the Oklahoma border. Although it is not considered a suburb of the Dallas-Ft. Worth Metroplex, it is only an hour a way from DFW airport making commuting and travel to Gainesville convenient. SES Peak Impact Gainesville, Texas US Hwy 82 IH-35
Property Analysis Survey
Information in this package is confidential and is supplied to you specifically and is not to be reproduced without the express written consent of Broker. No representations or warranties, either expressed or implied, are made concerning the accuracy or completeness of this package, or the accuracy of any projection or estimate based thereon and further no legal commitment or obligation shall arise by reason of this package or its contents. All such information is submitted to error, omissions or changes in conditions. DAVID M. BUTLER, 713-557-8634 D M Butler Real Estate, LLC PO Box 130455 The Woodlands, TX 77393 www.dmbre.com