SHOPPES AT BAYTOWN BAYTOWN, TEXAS (HOUSTON MSA) EXECUTIVE SUMMARY OPPORTUNITY TO ACQUIRE A FULLY LEASED SHOPPING CENTER WITH VALUE ADD COMPONENTS IN THE THRIVING BAYTOWN MARKET Hollida Fenoglio Fowler, L.P. acting b and through Hollida GP Corp a Texas licensed real estate broker ( HFF ).
INVESTMENT SALES RYAN WEST Senior Managing Director T. (713) 852-3535 rwest@hfflp.com JOHN INDELLI Associate T. (713) 852-3407 jindelli@hfflp.com JOHNNY KIGHT Real Estate Analst T. (713) 212-6575 jkight@hfflp.com HFF L.P., ( HFF ) is pleased to present the opportunit to acquire Shoppes at Batown (the Propert ), a 75,591 SF, 100% leased retail center ideall situated along Garth Road immediatel south of Interstate-10 East in Batown, TX. Shoppes at Batown offers investors the unique opportunit to acquire a full leased shopping center in the thriving and expanding Batown market with imbedded value-add components perfectl suited for short-term three to five ear and long term hold periods alike. Opportunit to develop an additional pad site and mark current bank pad to market which will significantl increase NOI In place rents are 20% below market - Boost value and cash flow through short and long term mark to market opportunities Capitalize on earl double digit cash on cash returns Significant growth underwa in Batown underpinned b expansion in the Port of Houston and petrochemical plants Offered free and clear of debt so investors can capitalize on historicall accretive financing options FOR FINANCING INQUIRIES MICHAEL JOHNSON Associate Director T. (713) 852-3474 mjohnson@hfflp.com HFF HOUSTON 9 Greenwa Plaza, Suite 700 Houston, Texas 77046 T. (713) 852-3500 F. (713) 527-8725 hfflp.com
PROPERTY DASHBOARD PROPERTY SUMMARY Address: 6902-6958 Garth Rd Batown, Texas 77521 Location: SEC of Garth Rd and Interstate 10 Year Built: Net Rentable Area: 75,591 Land Area: Parking Spaces: 1984 (2006 Renovation) 5.959 Acres In-Place Occupanc: 100.0% Traffic Counts: Wtd. Average In-Place Rent: $11.89 Percent Below Market: 20% 412 (5.46 / 1,000 SF) Interstate 10: 92,000 VPD Garth Road: 34,000 VPD Total: 126,000 VPD TENANT DIVERSIFICATION Predominatel National and Regional Tenants 27% 13% 59% Na onal Regional Local LEASE EXPIRATION SCHEDULE Staggered Expirations Over the Next Five Years Presents the Near-Term Opportunit to Increase Rents 25,000.00 20,000.00 15,000.00 10,000.00 5,000.00-0.0% Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Dec-25 Dec-26 Dec-26 + RSF Expiriing Cumula ve % Expiring 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% FINANCIAL SUMMARY Year 1 NOI: $720,473 Wtd. Average Remaining Lease Term: 3.2 Years 10 Year CAGR: 4.72% 5 Year CAGR: 4.05% Rollover Summar Within 3 Years of Operation 64.5% Within 5 Years of Operation 91.6% NET OPERATING INCOME NOI $1,200,000 $1,100,000 $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 1
U/C SHO PPES AT BAYTOWN G A R T H R O A D 45 I H - 4 5 1 5 5, 3 4 0 V P D SAN JACINTO MALL Immediate connectivit to and visibilit from one of Houston s busiest freewas Interstate 10 (92,000 VPD) Positioned at the center of gravit in Batown which is shifting north along Garth Road due to imminent deliver of brand new HEB and Fidelis planned repositioning of San Jacinto Mall Recognized, successful, national brands comprise nearl 60% of the strip center Strong demographic fundamentals and economic activit to support immediate area underpinned b the strength of the Port Abilit to increase NOI b capitalizing on embedded rent growth and development opportunities Extremel tight immediate retail trade area with 98.3% average occupanc (Garth Rd corridor between I-10 & Hw 146) Located minutes from Houston s Port and Industrial facilities which provides significant weekda customer traffic Port of Houston is a primar economic driver - Ranked #1 in import tonnage for the past 25 ears. Houston-Galveston custons district haulled $162 bn in trade, making it the largest export market in the U.S. 2
SITE PLAN THOUGH STABLE, INVESTORS HAVE OPPORTUNITY TO EXPAND THE CENTER AND CREATE VALUE A C A 5,270 SF 8,862 SF 12,403 D 10,440 SF Lee Palace 4,578 SF Recent 5-Year Renewal Bounce 12,403 SF E Elite MMA 10,000 SF (thru 2022) 8,342 SF Dental Office - 1,587 SF 1,197 SF 1,363 SF Metro PCS - 1,669 SF Nail Salon - 823 SF 1,174 SF U.S. Armed Forces 4,924 SF A. 4 Points of ingress/egress from Garth Road and Sharon Lane road provide eas access to the shopping center B. Address Woodforest bank pad which is paing a rate significantl below market with a 2021 lease expiration (and FMV option) C. Develop additional pad alongside the east side of the parking lot along Garth Road D. 5.56 / 1,000 SF Parking Ratio offers adequate parking for all business tpes E. Elite MMA recentl signed a 5 ear lease for $6.60 PSF. The space is ideal for destination/fitness retailers seeing discounted rent. G A R T H R O A D C A C A Woodforest National Bank 2,691 SF S H A R O N L A N E SHOPPES AT BAYTOWN 6902 GARTH ROAD BAYTOWN, TEXAS 3
BAYTOWN TRADE AREAS SAN JACINTO MALL Fidelis Realt Partners recentl acquired the San Jacinto Mall and plans to completel redevelop the propert into the preeminent retail destination in east Houston. The center will draw a wide variet of highl sought-after tenants and will not onl become the area's premier shopping destination, but also a famil-friendl center where the communit can congregate to enjo shopping, dining and entertainment options in an inviting, spacious and aestheticall pleasing environment. SUPER REGIONAL TRADE AREA The trade area caters to a large radius of people from East Houston to West Beaumont. With limited retail centers east of Batown, the area s convenient location on Interstate 10 caters to households from over 20 miles awa. With H-E-B, Kroger, and Academ committing to the immediate trade area, there has been a significant push north towards the subject propert and Interstate 10. Coupled with the redevelopment of the mall, traffic counts and activit are expected to increase dramaticall. GULF COAST REGION ECONOMIC ACTIVITY The Port of Houston is one of the busiest and most heavil emploed ports in the world. It ranks 1st in foreign tonnage and 2nd in domestic tonnage among US ports. 68% of the Gulf Coast container traffic flows through the Port of Houston. Aside from the Port of Houston, there has been $50 billion worth of chemical plant constructions since 2013 due to the petrochemical boom. The American Chemistr council predicts this industr will help create 195,000 jobs in the area b 2023. PETROCHEMICAL BOOM The multibillion-dollar petrochemicals boom injects new life into Batown. Significant global demand for petrochemical products is feeding a $50 billion to $60 billion construction burst at east-side refineries and chemical plants now flush with reasonabl priced natural gas and oil - feedstock for plastics and other products the make. Developers are building houses, apartments and stores from the ground up which will add critical mass to the trade area. OUTSTANDING DEMOGRAPHICS With an astounding 33% population growth over the last seven ears, it is poised to grow b an additional 14% b 2022. The average household income is almost $85,000 due to the local oil and gas industries. PORT OF HOUSTON OVERVIEW Source: Port Of Houston Authorit The Port of Houston is made up of the Port of Houston Authorit and the 150+ private industrial companies along the 52-mile Houston Ship Channel. All together, the port authorit and its neighbors along the ship channel are a large and vibrant component of the regional econom. As one of the world s largest seaports, The Port of Houston has been instrumental in Houston s development as a center of international trade. About 100 steamship lines offer service linking Houston with 1,053 ports in 203 countries. Each ear, more than 200 million tons of cargo move through the Port of Houston, carried b more than 8,000 vessel and 200,000 barge calls. Overall, it is a $15 billion petrochemical complex, the largest in the nation and second largest worldwide. EXXONMOBIL BAYTOWN OVERVIEW Source: ExxonMobil The ExxonMobil Batown area is the largest petroleum & petrochemical complex in the United States. Founded in 1920, the complex covers five square miles or 3,400 acres along the Houston Ship Channel. The complex includes a refiner, two chemical plants, a regional engineering office and a global technolog center. A plastics plant is located in nearb Mont Belvieu. 4
LOCATION MAPS Frw MONTGOMERY S H O P P E S AT eewa East Fr Pr Greenspoint West Baker Rd op George Bush Intercontinental Airport os ed Gran d Sam Houston Pkw Pkw Lake Houston 69 Frw w Fr Sheldon Reservoir Road st rth we Toll Hard rth No No George Bush Park The Galleria wa Westpark Toll rw tf es w h ut So FORT BEND Texas Medical Center h Sout n East Batow Loop Downtown Westchase Westheimer Rd S H O P P E S AT BAYTOWN East Loop Energ Corridor West Loop Kat Frw w nt H o aum Be North Frw San Jacinto Ba Pasadena Frw Loop Barbour s Cut Terminal 69 Galveston Ba Pk w William P. Hobb Airport Sam Houston Tollwa l Gu rw ff South Frw oad ad artin Ro R Garth John M HARRIS Be nd Road BAYTOWN Fort pson Eas ExxonMobil Corporate Headquarters Lake Houston State Park tex Road North Main Street Thom allisville East W LIBERTY 69 Grand Pkw The Woodlands Armand Baou Park Baport Terminal Clear Lake Smithers Lake Proposed Grand Pkw BRAZORIA GALVESTON 5
INVESTMENT SALES RYAN WEST Senior Managing Director T. (713) 852-3535 rwest@hfflp.com JOHN INDELLI Associate T. (713) 852-3407 jindelli@hfflp.com JOHNNY KIGHT Real Estate Analst T. (713) 212-6575 jkight@hfflp.com FOR FINANCING INQUIRIES MICHAEL JOHNSON Associate Director T. (713) 852-3474 mjohnson@hfflp.com Hollida Fenoglio Fowler, L.P. acting b and through Hollida GP Corp a Texas licensed real estate broker ( HFF ). 2017 HFF and HFFS (HFF Securities L.P.) are owned b HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industr. HFF together with its affiliate HFFS offer clients a full integrated national capital markets platform including debt placement, investment sales, equit placement, advisor services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF. HFF has been engaged b the owner of the propert [properties] to market it [them] for sale. Information concerning the propert [properties] described herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accurac or completeness of such information. An and all references to age, square footage, income, expenses and an other propert specific information are approximate. An opinions, assumptions, or estimates contained herein are projections onl and used for illustrative purposes and ma be based on assumptions or due diligence criteria different from that used b a buer. Buers should conduct their own independent investigation and rel on those results. The information contained herein is subject to change.