OFFERING MEMORANDUM 2500 N Medford Drive, Lufkin TX 75901 FleetPride I N D U S T R I A L
EXCLUSIVELY LISTED BY Johnny DUNN National Industrial Specialist Johnny.Dunn@matthews.com DIR (214) 692 2114 MOB (817) 372 1742 LIC # 677506 (TX) Kyler Bean National Industrial Specialist Kyler.Bean@matthews.com DIR (214) 692 2192 MOB (325) 227 0893 LIC # 646910 (TX) CONTENTS 4 INVESTMENT OVERVIEW 6 FINANCIAL ANALYSIS chad kurz SVP & National Director Chad.Kurz@matthews.com DIR (214) 692 2927 MOB (562) 480 2937 LIC # 01911198 (CA) 8 TENANT OVERVIEW 10 PROPERTY OVERVIEW Kyle Matthews BROKER OF RECORD LIC # 9005919 13 AREA OVERVIEW
INVESTMENT OVERVIEW 4 Offering Memorandum
Investment Highlights Property: New Development- FleetPride reached out to have this facility built in April of 2015, their lease began October 1st of that year Strong Return- 8.40% Cap Rate at List Price Fantastic Location- Located directly along US Route 59, a border-to-border route that is part of the NAFTA Corridor Highway System. This route connects Lufkin with Houston, TX ± 9,800 SF Total on 1.71 Acres Location: Complimentary Neighbors- FleetPride is across the street from a Semi-Truck Dealership selling New and Used Vehicles & a Semi-Truck Tire Center Along US Route 59- This site acts as a stopping point for Truck Drivers along the highway system, directly between Texarkana and Houston Tenant: Corporate Lease- FleetPride, Inc was founded in 1999, Annual Revenue across their locations is over $1 Billion Excellent Business Model- FleetPride is the largest independent distributor of heavy-duty truck and trailer parts in the U.S. operating in 260 + locations in 45 states Lufkin, TX 5
FINANCIAL ANALYSIS 6 Offering Memorandum
Tenant Summary 2500 N Medford Drive Lufkin, TX 75901 List Price... $ 1,041,990 CAP Rate - Current...8.40% Gross Leasable Area...± 9,800 SF Lot Size...± 1.71 Acres (74,662 SF) Year Built... 2015 Tenant Trade Name FleetPride Type of Ownership Fee Simple Lease Guarantor Corporate Lease Type NN Roof, Parking, & HVAC LL Responsible Original Lease Term 5 Years Lease Commencement Date 10/1/2015 Lease Expiration Date 09/30/2020 Term Remaining on Lease ± 3 Years Increases In 2nd Option Options Two, 5-Year Options Annualized Operating Data Monthly Rent Annual Rent Cap Rate Current - 9/30/2020 $7,608.00 $91,296.00 8.40% Option 1 $7,608.00 $91,296.00 8.40% Option 2 $7,988.00 $95,856.00 9.20% Lufkin, TX 7
TENANT OVERVIEW 8 Offering Memorandum
Company Name Parent Company Trade Name Ownership No. of Locations FleetPride TPG Private ± 260, 45 States No. of Employees ± 3,000 Headquarters 600 E. Colinas Blvd, Suite 400 Irving, TX 75039 Website www.fleetpridecompleteautocare.com Year Founded 1999 FleetPride The Heavy Duty Experts Formed in 1999, FleetPride is the largest distributor of truck and trailer parts in the independent heavy-duty aftermarket channel. FleetPride operates over 262 locations in 45 states and carries over 400 nationally-recognized brands. In addition, FleetPride offers in-house re-manufactured products such as brake shoes and driveline components. Truck and trailer repair services are also offered at a number of locations under the FleetCare brand. National Footprint. Local Expertise. Operating through five regional distribution centers, FleetPride serves a diverse customer base across multiple industries, including freight and shipping, leasing services, agriculture, food and beverage, construction and waste management. Our supply chain expertise ensures that customers get what they need, when and where they need it. Our local knowledge allows us to tailor products and services to the unique needs of area customers, while our national footprint allows for consistent, reliable service at every branch location. About TPG TPG is a leading global private investment firm founded in 1992 with $51.5 billion of assets under management and offices in San Francisco, Fort Worth, Austin, Beijing, Chongqing, Hong Kong, London, Luxembourg, Melbourne, Moscow, Mumbai, New York, Paris, Sao Paulo, Shanghai, Singapore and Tokyo. TPG has extensive experience with global public and private investments executed through leveraged buyouts, recapitalizations, spinouts, growth investments, joint ventures and restructuring. The firm has a strong presence in the industrial, manufacturing and retail sectors. Significant investments have included American Tire Distributors, Armstrong World Industries, Burger King, China Grand Auto, Ducati, Graphic Packaging, Grohe, J. Crew, Lenta, Neiman Marcus, Nexeo Solutions, Petco and Savers. For more information visit www.tpg.com. Lufkin, TX 9
PROPERTY OVERVIEW 10 Offering Memorandum
The Offering Parcel Map Property Name Property Address Site Description Number of Stories Family Dollar 2500 N Medford Dr Lufkin, TX 75901 One Year Built 2015 Gross Leasable Area (GLA) Lot Size Type of Ownership ± 9,800 SF ± 1.71 Acres (74,662 SF) Fee Simple Oceanside Blvd ± 31,792 Construction Framing N Parking Surface Steel Concrete Lufkin, TX 11
SURROUNDING TENANTS 12 Offering Memorandum
AREA OVERVIEW Lufkin, TX 13
Lufkin, TX Found in Angelina County, Lufkin Texas is located in the Forest Country of East Texas. Lufkin has various attractions for visitors including 18-hole golf courses, museums, a well-known Zoo, great outlets for bass fishing and a pleasant downtown that is great for shopping and finding excellent restaurants. Lake Sam Rayburn is one of the best spots around for bass fishing, camping and other water sport activities, the lake alone attracts around 2 million people every year. Lufkin is home to the Texas Forestry Museum, something unique to the town that exhibits forests products that originally put Lufkin on the map. Other attractions include the Museum of East Texas that displays art and history and the Ellen Trout Park and Zoo which is a big draw for visitors to the town and has received several state and national awards. Lufkin Demographics POPULATION 1 Mile 3 Mile 5 Mile 2022 Projection 3,142 21,235 43,514 2017 Estimate 3,055 20,782 42,282 2010 Census 3,006 20,749 41,693 2000 Census 2,713 20,183 39,785 Growth 2010-2017 1.63% 0.16% 1.41% HOUSEHOLDS 1 Mile 3 Mile 5 Mile 2022 Projection 920 7,096 15,749 2017 Estimate 898 6,943 15,291 Growth 2017-2022 2.45% 2.20% 3.00% INCOME 1 Mile 3 Mile 5 Mile 2017 Est. Average Household Income $53,533 $47,920 $53,606 14 Offering Memorandum
Lufkin Industry Located in East Texas and having convenient access to several major cities including Dallas, Houston, San Antonio and Waco makes Lufkin an ideal spot for business to develop. Lufkin is considered a industry-friendly community do to the 39.29 available acres available in business parks and 96.82 acres available to industrial and commercial property. The town offers expedited building permits, job-training assistance, economic development incentives and health care, technical, and industrial training programs. Lufkin, TX 15
Information About Brokerage Services Texas law requires all real estate license holders to give the following informaɵon about brokerage services to prospecɵve buyers, tenants, sellers and landlords. 11-2-2015 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 ᴑ that the buyer/tenant will pay a price greater than the price submiʃed in a wriʃen offer; and 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. Kyle Matthews/Matthews Retail Group Inc. 678067 kyle.matthews@matthews.com (310) 919-5757 Licensed Broker /Broker Firm Name or Primary Assumed Business Name License No. Email Phone Kyle Matthews 678067 kyle.matthews@matthews.com (310) 919-5757 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 Date InformaƟon available at www.trec.texas.gov IABS 1-0
CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of FleetPride located at 2500 N Medford Drive, Lufkin TX 75901 ( Property ). It has been prepared by Matthews Retail Advisors. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Retail Advisors. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Retail Advisors expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Retail Advisors or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.
OFFERING MEMORANDUM EXCLUSIVELY LISTED BY Johnny DUNN National Industrial Specialist I N D U S T R I A L Johnny.Dunn@matthews.com DIR (214) 692 2114 MOB (817) 372 1742 LIC # 677506 (TX) Kyler Bean National Industrial Specialist Kyler.Bean@matthews.com DIR (214) 692 2192 MOB (325) 227 0893 LIC # 646910 (TX) chad kurz SVP & National Director Chad.Kurz@matthews.com DIR (214) 692 2927 MOB (562) 480 2937 LIC # 01911198 (CA) Kyle Matthews BROKER OF RECORD LIC # 9005919 FleetPride 2500 N Medford Drive, Lufkin TX 75901