REPRESENTATIVE PHOTO Exclusive OFFERING $1,069,000-6.50% CAP 214.915.8890 JOE CAPUTO joe@exp1031.com BOB MOORHEAD bob@exp1031.com RUSSELL SMITH russell@exp1031.com property. 1,389+ SF building on 0.49+ acre site tenant. Lessee: 230+ locations in the US and UK. lease structure. 10-year corporate absolute NNN lease with (2) 5-year options and 10% rent increase every 5-years during base term and option period. location. is located at the highly travelled intersection of North 10th Street (39,450 Cars / Day) and Pecan Boulevard (23,702 Cars / Day) just north of downtown McAllen. Nearby retailers include Walmart, Kmart, Barnes & Noble, HEB, Starbucks, Smashburger, Buffalo Wild Wings, Walgreens, Sprouts, and JPMorgan Chase Bank. Just west of 495 Commerce Center business park; 110-acre mixed use development with the only class A office space in Texas south of San Antonio. 1.7-miles west of South Texas College (31,000 students) main campus. The site is located in the Texas Rio Grande Valley. This 4-county area has a population of 1,138,872 which grew by 36.05% over the last 10-years.
Table of contents Disclaimer PAGE 1: PAGE 2: PAGE 3: PAGE 4-5: PAGE 6: PAGE 7: PAGE 8: PAGE 9-10: PAGE 11: COVER TABLE OF CONTENTS DISCLAIMER INVESTMENT TENANT LEASE OVERVIEW AERIAL PHOTOS SITE PLAN SITE RENDERING LOCATION OVERVIEW LOCATION MAPS DEMOGRAPHICS REPRESENTATIVE PHOTO SUBJECT PROPERTY Disclaimer EXP Realty Advisors, Inc. ( Agent ) has been engaged as an agent for the sale of the property located 1521 North 10th Street, McAllen, TX the owner of the Property ( Seller ). The Property is being offered for sale in an as-is, where-is condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. The enclosed materials are being provided solely to facilitate the prospective investor s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Agent nor the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein. Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller. Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller s obligations hereunder have been satisfied or waived. By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller and Agent. 2
Investment overview PRICE: $1,069,000 CAP RATE: 6.50% NET OPERATING INCOME: $69,450 BUILDING AREA: 1,389+ Square Feet Lease overview Initial Lease Term: 10-Years, Plus 2, 5-Year Options to Renew Rent Commencement: July 2014 Lease Expiration: July 2029 Lease Type: Absolute NNN LAND AREA: 0.49+ Acres Rent Increases: 10% in Lease Year 6 & Escalating Every 5-Yrs. YEAR BUILT RENNOVATED: 1999 2014 LANDLORD RESPONSIBILITY: None OWNERSHIP: Fee Simple Interest OCCUPANCY: 100% Year 1-5 Annual Rent (Current): $69,450 Year 6-10 Annual Rent: $76,395 Year 11-15 Annual Rent (Option 1): $84,034 Year 16-20 Annual Rent (Option 2): $92,437 Tenant overview SPEEDY CASH http://www.speedycash.com is one of the largest, fastest growing providers of short-term loans and financial services in the United States, Canada, and the United Kingdom. In 1997, the first store opened in Riverside, California. was founded by three childhood friends from Wichita, Kansas. Thanks to their determination to be better and strong entrepreneurial spirit (which is very much alive in the company today), is an American success story. will grow well beyond 250 stores in the USA, Canada, and UK. has distinguished itself from competitors with quality product offerings, genuine Customer Service, robust operating systems, a state-of-the-art call center, and a track record of new product innovation. Holds Corp offers a variety of alternative financial related services and products to their customers needs. Services include cash advances, installment loans, vehicle title loans, check cashing, gold buying, money transfer services, reloadable prepaid debit cards and a number of other ancillary financial products and services. Employees are excited to be a part of the family, as witnessed by low turnover rates and energized Company culture. The company has consistently SUBJECT grown PROPERTY well ahead of other payday loan lenders and is primed for continued growth and enduring success. PRIOR TO PANDA EXPRESS EXPANSION operates under two principal brands in the U.S. as either or Rapid Cash. They operate in the U.K. as and their principal brand operates in Canada as Cash Money. As of December 31, 2011 they operated a total of 102 US retail locations in ten states under and Rapid Cash brands. They also have a significant internet presence and offer loans online in 22 states. In May 2011, the company acquired 114 Cash Money stores to establish a presence in Canada and as of December 2011 operated 120 retail locations in Canada. In 2011 the company began offering loans in the U.K and continues to expand its presence with the opening of stores in 2012 and 2013. 3
AERIAL PHOTO Milam Elementary School Seguin Elementary School McAllen High School Jackson Elementary School Lincoln Middle School Hendricks Elementary School Cathey Middle School Alvarez Elementary School Novarro Elementary School Memorial High School Downtown McAllen 4
AERIAL PHOTO 5
SITE PLAN 6
SITE RENDERING 7
Location overview IMMEDIATE TRADE AREA is located at the highly travelled intersection of North 10 th Street (39,450 Cars / Day) and Pecan Boulevard (23,702 Cars / Day) just north of downtown McAllen. Along with great accessibility and visibility, the site is in a high volume retail trade area. These attributes have attracted numerous national credit retailers to the immediate trade area. Since 10th Avenue serves as a primary thoroughfare to the north from downtown McAllen, this street has seen the most dense retail development in the vicinity. The subject property is located 1.5 miles south of the recently constructed Northcross Shopping Center. This development is anchored by Barnes & Noble and includes Buffalo Wild Wings, Smashburger, and Vitamin Shoppe in its tenant mix. The site is also southeast of a Walmart and Kmart. Other nearby retailers include HEB, Sprouts, a Cinemark movie theater, Starbucks, Walgreens, Family Dollar, FedEx Office, and JPMorgan Chase Bank. The recent construction of the mixed use 495 Commerce Center business park has enhanced the trade area s status as a major employment center. 495 Commerce Center is a 110 acre, master planned that contains the only class A office space in Texas south of San Antonio. The site benefits further from the growing residential and substantial student population nearby. The population within a 1 mile radius of the site is projected to grow by 8.11% over the 5-year period ending in 2018. The main campus of South Texas College (31,000 students) is located 1.7 miles west of the subject property. With a staff of 1,600 this institution is the 9 th largest employer in McAllen. Additionally, nine primary and secondary schools with a combined enrollment of nearly 10,000 are located within a 1.5 miles radius of the subject property. The population density within a 3-mile radius of the subject property is 108,395 people. McALLEN, TX / HIDALGO COUNTY McAllen is the 20 th most populous city in Texas with a population of 134,719 and the largest city in Hidalgo County. The latter half of the 20th century saw steady growth, which accelerated during the 1980s, leading to an economic and population boom in the 1990s and 2000s. The North American Free Trade Association led to a boom in international trade and cross-border commerce with Mexico. Although McAllen's total population is 20th among Texas cities, it ranks 12th in overall retail sales and 3 rd in the state in total retail sales both per household and per capita. Hidalgo County exhibited strong economic growth in the early to late 2000s. Gross domestic product in Hidalgo County grew at an average annual rate of 8.2% from 2001 through 2008, to $13.8 billion dollars; 1.5 times faster than the national economy. Additionally, Hidalgo County has been one of the few areas in the U.S. to have weathered the recession well. Since the recession began in the fourth quarter of 2007, through the first quarter of 2010, the Hidalgo County economy was identified as one of the top 21 strongest performing economies in the U.S. according to MetroMonitor. RIO GRANDE VALLEY The Rio Grande Valley is located in the southernmost tip of Texas and is made up of 4 counties: Starr County, Hidalgo County, Willacy County, and Cameron County. This area is anchored by the cities of Brownsville, McAllen, Edinburg, Pharr and Mission. These 4 counties where these cities area located have a combined population of 1,138,872 and is growing quickly Hidalgo County, which encompasses the McAllen-Edinburg-Mission Metropolitan Statistical Area had a population increase of 36.05% placing it as the 11th fastest growing Metropolitan Statistical Area from 2000 to 2010 in the United States. The McAllen-Edinburg-Mission MSA is also part of the transnational metropolitan area (TMA) of Reynosa McAllen, known unofficially as RioPlex or BorderPlex. The transnational statistical area is represented by 40 of America s top 100 retailers. More than 80 of Fortune 500 s global manufacturers have operations in the MSA. Included among them are: AT&T, Bissell, Black & Decker, BMW, Delco, Drexel, Meyer, Eaton, Emerson, GE, Johnson Controls, Nokia, R.R. Donnelley & Sons, Panasonic, Siemens, Sony, Symbol, TRW, West Bend and Whirlpool. The TMA is the retail center of South Texas and Northern Mexico, drawing from a consumer base of over 8.2 million people. The Rio Grande Valley and the rest of South Texas are among the most dynamic regions of Texas. In a recent economic report by the State Comptroller the economic outlook of the region was rated as excellent with a job creation expected to outpace that of the rest of the state through 2012. This sector has become the driving force in the local economy, which has grown 138% over the last decade to over $3.58 billion and employing 27% of the local workforce. MSA / TMA ACCOLADES: Fastest Growing Metro Area in the Nation Fiscal Times, 2012. No. 1 Best Housing Market in the Nation Wall Street Journal, 2012. No. 4 Best Mid-Sized Cities for Jobs Forbes, 2011. Top 100 Location for Doing Business Area Development Magazine, 2011 One of the Top Ten Best Areas for Recession Recovery -Forbes, 2009. One of the Best Places to Launch a Small Business CNN Money, 2009. MSA Ranked 1st in High Technology Sector Growth in 2008. MSA has the 3rd Lowest Cost of Living in the US. Mexican Nationals Account for 20% to 35% of Border Exported Retail Sales. 8
Location map 9
Location map 10
Demographics Demographic snapshot Radius 1 Mile 3 Mile 5 Mile Population: 2018 Projection 16,966 116,761 256,010 2013 Estimate 15,694 108,395 236,020 2010 Census 14,868 103,871 221,071 Growth 2013-2018 8.11% 7.72% 8.47% Growth 2010-2013 5.56% 4.36% 6.76% Households: 2018 Projection 5,710 38,054 79,515 2013 Estimate 5,293 35,388 73,413 2010 Census 5,055 34,136 69,174 Growth 2013-2018 7.88% 7.53% 8.31% 495 COMMERCE CENTER, McALLEN, TX Growth 2010-2013 1.27% 1.56% 2.96% Owner Occupied 2,663 19,456 46,986 Renter Occupied 2,630 15,932 26,427 2013 Avg Household Income $40,106 $52,720 $57,294 2013 Med Household Income $24,609 $33,216 $38,911 2013 Households by Household Inc: <$25,000 2,677 14,364 25,793 $25,000 - $50,000 1,297 8,660 18,611 $50,000 - $75,000 660 4,692 10,310 $75,000 - $100,000 276 3,026 7,180 $100,000 - $125,000 127 1,782 4,944 $125,000 - $150,000 84 745 2,071 $150,000 - $200,000 97 1,155 2,487 $200,000+ 76 965 2,015 McALLEN-REYNOSA INTERNATIONAL BRIDGE, McALLEN, TX 11