CONROE RETAIL CENTER NEC Interstate 45 & North Loop 336 West Conroe, TX

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Kristian Bradley
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1 NEC Interstate 45 & North Loop 336 West Conroe, TX

OFFERED FOR SALE Total GLA 9,993 Location 1240 North Loop 336 West, Conroe, TX 77301 NOI $381,549 Sale Price Call for Pricing (Financing Available) 45

located at 1240 North Loop 336 West on the northeast corner of the dominant intersection of Interstate 45 and Loop 336 in Conroe, Montgomery County, TX.

Yogurt. Conroe Retail Center is situated on 1.

2 OFFERED FOR SALE Total GLA 9,993 Location 1240 North Loop 336 West, Conroe, TX NOI $381,549 Sale Price Call for Pricing (Financing Available) 45 SITE 133,139 CPD 31,320 CPD 34,000 CPD ,906 CPD PROPERTY INFORMATION Conroe Retail Center is a 9,993 SF single-story, multi-tenant retail center located at 1240 North Loop 336 West on the northeast corner of the dominant intersection of Interstate 45 and Loop 336 in Conroe, Montgomery County, TX. This newly constructed center features a strong roster of national tenants including Potbelly Sandwich Shop, MOD Pizza, James Avery and Menchie s Frozen Yogurt. Conroe Retail Center is situated on 1.3 acres of land in the established Conroe trade area with a population of over 68,000 within a 5 mile radius. The property is located on Loop 336 in close proximity to Conroe s primary grocers including Kroger (shadow anchored), HEB, Walmart Supercenter and Aldi.

INVESTMENT HIGHLIGHTS - 100% Leased, Newly Built Retail Center - Kroger Shadow Anchored - National Credit Tenants on Long Term Leases Account for 86% of GLA - Hard Corner at Dominant Intersection -

3 INVESTMENT HIGHLIGHTS - 100% Leased, Newly Built Retail Center - Kroger Shadow Anchored - National Credit Tenants on Long Term Leases Account for 86% of GLA - Hard Corner at Dominant Intersection - Excellent Visibility from Intersection at Loop High Traffic Area in Excess of 133,000 CPD - Residential Rapidly Expanding in the Immediate Area with over 1,800 New Homes Delivered in the Last 18 Months - Located off Loop 336, the Major East-West Drive Serving the Community - New Non-Recourse CMBS and Bank Financing Available AREA EMPLOYERS AREA RETAILERS

INVESTMENT OVERVIEW LOCATION: NEC Interstate 45 and North Loop 336 West ADDRESS: 1240 North Loop 336 West, Conroe, TX ACRES: 1.

1/1,000) CONSTRUCTION: Cinderblock, EIFS façade and concrete parking lot NOI: $381,549 PRICE: Call for Pricing (Financing Available) TENANT OVERVIEW Potbelly Sandwich Shop 2,210 SF, Lease expiration

In 1996, entrepreneur, Bryant Keil, acquired Potbelly Sandwich Works in order to capitalize on the growing popularity amongst customers.

Crain s Chicago Business tapped founding chairman, Bryant Keil, as one of its 40 under 40 young business leaders, INC Magazine listed Potbelly as one of our nation s 500 fastest growing companies and

4 INVESTMENT OVERVIEW LOCATION: NEC Interstate 45 and North Loop 336 West ADDRESS: 1240 North Loop 336 West, Conroe, TX ACRES: 1.3 YEAR BUILT: 2016 BUILDING NRA: 9,993 OCCUPANCY: 100% PARKING SPACES: 71 (7.1/1,000) CONSTRUCTION: Cinderblock, EIFS façade and concrete parking lot NOI: $381,549 PRICE: Call for Pricing (Financing Available) TENANT OVERVIEW Potbelly Sandwich Shop 2,210 SF, Lease expiration 8/31/2026 In 1977, Potbelly Sandwich Works began as a small antique and sandwich shop in Chicago, Illinois. In 1996, entrepreneur, Bryant Keil, acquired Potbelly Sandwich Works in order to capitalize on the growing popularity amongst customers. Since 1996, Potbelly Sandwich Shop has grown to include over 400 corporate and franchised shops in neighborhoods across the United States and internationally. Crain s Chicago Business tapped founding chairman, Bryant Keil, as one of its 40 under 40 young business leaders, INC Magazine listed Potbelly as one of our nation s 500 fastest growing companies and Crain s listed Potbelly as the 8th fastest growing company in Chicago. MOD Pizza 2,400 SF, Lease expiration 8/31/2026 MOD Pizza is the original superfast pizza experience, a pioneering fastcasual concept to provide customers with individually sized, made on demand pizzas and salads. Founded in 2007 in Seattle, Washington, MOD Pizza has since expanded to 200 locations across the United States and United Kingdom, doubling the company s footprint in just under a year. In 2016, co-founders Scott and Ally Svenson received the EY Entrepreneur of the Year Award in Pacific Northwest region. MOD Pizza currently operates 17 locations in the Houston MSA with an additional stores forecasted over the next 5 years.

James Avery Jewelry 2,480 SF, Lease expiration 8/31/2026 TENANT OVERVIEW CONT.

James Avery is a vertically-integrated company and designs, manufactures, market and sells their own products.

employees. Today, James Avery offers over 1,100 designs and maintains some 14,000 separate jewelry items in their active product line, each originated by skilled artisans. www.jamesavery.

5 James Avery Jewelry 2,480 SF, Lease expiration 8/31/2026 TENANT OVERVIEW CONT. Founded in 1954, James Avery is a family-owned company offering finely crafted jewelry designs in sterling silver, yellow and white gold and gemstones for women and men. James Avery is a vertically-integrated company and designs, manufactures, market and sells their own products. Headquartered in Kerrville, Texas, James Avery has expanded their retail locations to over 70 stores nationwide and five central Texas jewelry manufacturing plants boasting a total of over 2,000 employees. Today, James Avery offers over 1,100 designs and maintains some 14,000 separate jewelry items in their active product line, each originated by skilled artisans. Menchie s Frozen Yogurt 1,470 SF, Lease expiration 2/28/2027 Menchie s Frozen Yogurt started out as a single store in Southern California in 2007 and has evolved into a global presence, offering selfserve yogurt with a variety of toppings. As the largest self-serve frozen yogurt company in the world, Menchie s currently has more than 540 locations around the world, and continues to grow through franchisee opportunities. Entrepreneur Magazine included Menchie s in its Franchise 500 and Fastest Growing rankings in 2014 and 2013, as well as on its Top New list in 2013 and Menchie s is currently expanding around the Houston area and continues to grow its 21 Houston locations. Premier Nail Bar 1,433 SF, Lease expiration 6/30/2027 Premier Nail Bar is a full-service nail salon offering manicures, pedicures, eyelash extensions, waxing and facials. The practice is operated by an experienced operator with an additional location in Livingston and a second location currently being built out in Richmond, Texas.

HOUSTON OVERVIEW Houston has a GDP of $503 billion, making it the fourth largest city in the United States and the largest city by population in Texas. Over 6.

6 HOUSTON OVERVIEW Houston has a GDP of $503 billion, making it the fourth largest city in the United States and the largest city by population in Texas. Over 6.6 million people call the Houston metro area home. Since 2000, Houston s population has grown by over 26 percent, the second-highest rate in the country. Named the Number One Market to Watch in 2015 by Urban Land Institute, Houston has consistently been a national leader in employment and population growth. According to Moody s Analytics, Houston s population grew by over 600,000 residents between 2010 and 2015 ranking it first out of any metropolitan area in the United States, with an average of 120,000 projected new residents added each year. It also boasts the second fastest-growing housing market in the United States. If Houston maintains its average growth rate, Houston will surpass Chicago as the country s third most populous city by The Houston MSA has added over 1.2 million jobs over the past 25 years, ranking it third in the nation. The rapid job growth can be attributed to the 26 Fortune 500 headquarters, and 53 Fortune 1000 companies located in Houston, ranking it third among metro areas. From , the city has added a variety of aerospace, technology, manufacturing and medical companies to the economic mix, generating more than 752,000 diverse jobs. The city s healthcare sector is the largest sector in 2016, surpassing energy and is growing rapidly. Houston s Medical Center is the largest in the world with 21 renowned hospitals, 106,000 employees and 8 million visits per year and at $25 billion in GDP, it is the 8th largest business district in the United States. There are currently $3.5 billion in construction projects underway, including the planned $1.5 billion TMC3 Collaborative Institute, a new research campus to leverage the collective power of TMC s renowned institutions in a shared, centrally managed environment. The Houston s economy is also anchored by the Port of Houston, one of the world s busiest port. The Port of Houston is ranked first in the U.S. in both domestic import and export tonnage and second in the U.S. in total tonnage and creates more than one million Texas jobs, generating more than $265 billion in statewide economic impact (16% of state GDP). The city boasts a steadily growing housing market as the cost of living falls well below the national average. New home construction and sales have remained steady while prices have continued on an upward trend. Tax rates are low and the city s political climate is aggressively pro-business. The city s political climate is aggressively pro-business and officials have consistently opposed imposing zoning laws so as not to stifle the city s growth. HOUSTON NATION-LEADING STATISTICS No. 1 Top U.S. Metro for Exports in 2015 Department of Commerce September 2016 No. 1 Top Metro Residential Growth from U.S. Census March 2016 No. 1 Fastest Growing Cities in 2014 Forbes January 2015 No. 1 Top Market for Real Estate Investment for 2015 Houston Chronicle October 2014 No. 1 Market to Watch in 2015 Urban Land Institute October 2014 No. 1 Best Cities for Manufacturing Forbes June 2014 No. 1 Top U.S. Manufacturing Cities Manufacturers News January 2014 No. 1 Strongest Economy PPR Global December 2013 No. 1 Top Cities for Global Trade Global Trade August 2013

Future Grand Pkwy CONROE RETAIL CENTER CONROE TRADE AREA OVERVIEW Nestled 40 miles north of the Houston CBD, 10 miles north of The Woodlands/Spring trade area and 30 miles south of Huntsville, Conroe

Interstate 45 is the main north-south thoroughfare for all of Houston with over 340,000 CPD north of the Houston CBD and the primary retail corridor for Conroe.

7 Future Grand Pkwy CONROE RETAIL CENTER CONROE TRADE AREA OVERVIEW Nestled 40 miles north of the Houston CBD, 10 miles north of The Woodlands/Spring trade area and 30 miles south of Huntsville, Conroe is established community with ease of access to 25 million SF of office in surrounding business hubs. Interstate 45 is the main north-south thoroughfare for all of Houston with over 340,000 CPD north of the Houston CBD and the primary retail corridor for Conroe. It boasts the majority of the national anchors that support the residential population, which continues to expand to the north. The property is located in north Conroe, in close proximity to two city-owned business parks: Conroe Park North, an 80% built out, 1,045 acre industrial park home to NOV Downhole, Bauer Manufacturing and Stainless Structural, and the 248 acre Deison Technology Park, currently under development, which will continue to create a diverse regional employment base. Conroe is home to a robust tourism market with over 1,740 hotel rooms primarily situated along Lake Conroe, a 22,000- acre lake which supports water sports including fishing, skiing, sailing and boating. Conroe Independent School District (CISD), the largest school district in Montgomery County, is one of the fastest growing districts in the nation, adding in excess of 1,500 new students a year to a population of over 52,400 students. 10 Cypress The Woodlands Tomball SITE FM 1960 Rd Conroe 8 Houston 59 Kingwood Stoneside Rd SITE Plantation Dr W Cartwright Rd DEMOGRAPHICS 1 MILE 5 MILES 10 MILES Population 7,988 68, ,319 Daytime Population 14,051 75, ,435 Population Growth 10.16% 9.92% 11.37% Average HH Income $59,680 $63,170 $91, Sitewise Demographic Estimates TRAFFIC COUNTS Interstate 45 N of Loop 336 Loop 336 W of Interstate ,139 cpd 89,906 cpd

8 PROJECTED ANNUAL OPERATING STATEMENT CURRENT Base Rent Occupied Space 381,549 Vacant Market Gross Potential Rent 381,549 Total Reimbursements 65,068 Gross Income 446,617 Less: General Vacancy Effective Revenue 446,617 Reimbursable Operating Expenses CAM 19,738 Real Estate Taxes 13,109 Insurance 3,400 Utilities 12,844 Administrative Fee 4,887 Management Fee 11,090 Total Reimbursements 65,068 Net Operating Income $381,549 Notes: (1) Reconciliation expected to occur at year end.

9 FINANCIALS AVAILABLE UPON EXECUTION OF CONFIDENTIALITY AGREEMENT

DEBT FINANCING DEAL TERMS Deal Type: Permanent - Fixed Rate Loan Proceeds: Up to 75% of purchase price (or appraised value) Interest Rate: Starting at 4.

10 DEBT FINANCING DEAL TERMS Deal Type: Permanent - Fixed Rate Loan Proceeds: Up to 75% of purchase price (or appraised value) Interest Rate: Starting at 4.45% (actual lender quote)* Term: 5 to 15 years Amortization: 25 to 30 years Lender Fees: Up to 0.50% of loan amount Liability: Nonrecourse Structure: Reserves are negotiable Timing: Close within 60 days of executing purchase and sale agreement *Due to the volatility in the market place, rates are subject to vary.

11 LEASING PLAN TENANT Potbelly Sandwich Shop Menchie s Frozen Yogurt Premier Nail Bar James Avery Jewelry MOD Pizza SQ. FT. 2,210 1,470 1,433 2,480 2, Premier Nail Bar 5 STONESIDE ROAD 1,470 SF 1,433 SF 2,210 SF 2,480 SF 2,400 SF INTERSTATE LOOP 336

CONROE RETAIL CENTER AREA DEVELOPMENT PLAN LEAGU E LINE RD Carter s, Casual Male XL, Dress Barn, Famous

Maurices, Motherhood Maternity, Nike Factory Store, PacSun, Rue 21, Sunglass Hut, Uniform Destination,

C FM D 14 84 PD TR OR IRP HA 06 C 89,9 AC BE D 0 CP 31,32 336 AIR 133,1 105 33, 298 CPD CPD ER RD 062 PORT

12 CONROE RETAIL CENTER AREA DEVELOPMENT PLAN LEAGU E LINE RD Carter s, Casual Male XL, Dress Barn, Famous Footwear, GNC, Kitchen Collection, Lane Bryant, L egg, Levi s Outlet By Most, Lids, Mary s Fashion, Maurices, Motherhood Maternity, Nike Factory Store, PacSun, Rue 21, Sunglass Hut, Uniform Destination, Vitamin World THE DOCTORS GROUP 45 Montgome County Airport TEAS NURSERY RD SITE TR D 00 34,0 CPD POR PD 39 C FM D PD TR OR IRP HA 06 C 89,9 AC BE D 0 CP 31, AIR 133, , 298 CPD CPD ER RD 062 PORT 23, OLD MONTGOME RY RD N FRA 2 148,1 T H NORT (Under Construction) S MAIN ST FWY 45 (Proposed) 4 1 FM 13 ZIER S 8 CPD 336

13 CONFIDENTIALITY AGREEMENT & DISCLAIMER Transwestern 1900 West Loop South, Suite 1300 Houston, TX / Fax CONFIDENTIALITY STATEMENT Conroe Retail Center 1240 North Loop 336 West Conroe, TX The undersigned has been advised that Transwestern Property Company SW GP, L.L.C. dba Transwestern has been retained on an exclusive basis by the Owner with respect to the offering or sale of Conroe Retail Center, 1240 North Loop 336 West, Conroe, TX (the Property ). The Owner has indicated that all inquiries and communications with respect to the contemplated sale of such Property be directed to Transwestern. All fees due Transwestern in connection with the sale of the Property shall be paid by the Owner. The undersigned hereby acknowledges that it is a principal or an investment advisor in connection with the possible acquisition of the Property and agrees that it will not look to the Owner, the Owner s Lender or Transwestern for any fees or commissions in connection with the sale of the Property. The undersigned also hereby acknowledges that is has not dealt with any broker, other than Transwestern, and Co- Broker identified on subsequent signature page, regarding the acquisition of the Property, or if it has, the undersigned hereby agrees to indemnify the Owner, the Owner s Lenders and Transwestern against any compensation, liability or expense, arising from claims by Co-Broker, or any other broker or other party the undersigned had dealings with in connection with the sale of the Property. The Owner has available for review certain information ( Confidential Information ) concerning the Property. On behalf of the Owner, Transwestern may make such Confidential Information available to the undersigned upon execution of this Confidentiality Statement. The Confidential Information is intended solely for your own limited use in considering whether to pursue negotiations to acquire the Property. This is not an agreement to sell the Property, nor an offer of sale. No agreement binding upon the Owner of the Property, or any of its associated or affiliated companies, shall be deemed to exist, at law or equity, until the Owner of the Property enters into a formal binding agreement of sale. The Confidential Information contains brief, selected information pertaining to the business and affairs of the Owner, and has been prepared by Owner and Transwestern, primarily from information supplied by the Owner or Owner s Agent. It does not purport to be all inclusive or to contain all the information which a prospective purchaser may desire. Neither Transwestern, the Owner nor the Owner s Lender make any representation or warranty, express or implied, as to the accuracy or completeness of the Confidential Information and no legal liability is assumed or to be implied with respect thereto. By executing this Confidentiality Statement you agree that the Information provided is confidential, that you will hold and treat it in the strictest of confidence, and that you will not disclose or permit anyone else to disclose the Information to any person, firm or entity without prior written authorization of the Owner and Transwestern except that the information may be disclosed to your partners, employees, legal counsel and lenders or pursuant to a court order. Owner expressly reserves the right in its sole discretion to reject any or all proposals or expressions or interest in the property and to terminate discussions with any party at negotiations you hereby agree to return the Confidential Information to Transwestern.

14 On Behalf of Prospective Purchaser: Company: Address: City: Co-Broker (if any) Company: Address: City: State: ZIP: State: ZIP: Phone: Fax: By: Its: Date: Signature: Phone: Fax: By: Its: Date: Signature:

15 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 Before 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 intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the br ker 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 than 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. Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee s records. 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 or A TREC No. OP-K

FOR INFORMATION CONTACT: Micha van Marcke, CCIM Senior Vice President Micha.vanMarcke@transwestern.com 713.272.1231 Chace Henke Vice President Chace.Henke@transwestern.com 713.272.1274 Transwestern 1900 West Loop South, Suite 1300 Houston, TX 77027 P: 713.

16 FOR INFORMATION CONTACT: Micha van Marcke, CCIM Senior Vice President Chace Henke Vice President Transwestern 1900 West Loop South, Suite 1300 Houston, TX P: The information contained herein was obtained from sources believed reliable. However, Transwestern makes no guarantees, warranties or representations as to the completeness or accuracy thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions, prior sale or lease, or withdrawal without notice.

5005 EAST CROSSTIMBERS STREET FORMER FAMILY DOLLAR BUILDING AVAILABLE FOR SALE

5005 EAST CROSSTIMBERS STREET 5005 E CROSSTIMBERS STREET OFFERED FOR SALE Location Building Area Lot Size Occupancy Parking Spaces Auction Date Auction Website 5005 E Crosstimbers Street, Houston, TX 77016