Houston Beltway 8 (92,000 Cars / Day) EXCLUSIVE OFFERING $3,400,000 / 8.00% CAP EXP DALLAS 214.522.7200 JOE CAPUTO joe@exp1031.com BOB MOORHEAD bob@exp1031.com property. 11,834 SF+ building on 0.90+ acres. Built in 2008. tenant mix / lease structure. leased, 100% occupied 7-tenant property featuring top performing UPS Store and Little Caesars. The property has remained full since its initial lease-up all are original tenants and none have ever been in default of their lease. location. The subject property is located near the intersection of Houston Beltway 8 (92,000 Cars / Day) and Wallisville Road (31,193 Cars / Day).The subject property is across Beltway 8 from a Walmart Supercenter and the New Forest Crossing (342,942 SF) shopping center. This development is anchored by Lowe s Home Improvement and includes big box retailers such as Petsmart, Big Lots, Ross, and Anna s Linens. CVS, Buffalo Wild Wings, Carino s, and Applebee's are also located in New Forest Crossing. The site is across from the Shops at Stone Park (261,427 SF). This complex is anchored by JC Penney, Best Buy, Staples, Marshall s, and Party City. The Houston-Sugar Land-Baytown Metropolitan Statistical Area (MSA), colloquially known as Greater Houston, is the 6th largest in the United States with a population of 5,946,800.
Table of contents Disclaimer PAGE 1: PAGE 2: PAGE 3: PAGE 4: PAGE 5: PAGE 6: PAGES 7-9: PAGE 10: PAGE 11: PAGE 12-13: PAGE 14: COVER TABLE OF CONTENTS DISCLAIMER INVESTMENT OVERVIEW TENANT OVERVIEW RENT ROLL INCOME / EXPENSE PROFORMA SITE PLAN PROPERTY PHOTOS AERIAL PHOTO LOCATION OVERVIEW LOCATION MAPS DEMOGRAPHICS Disclaimer EXP Realty Advisors, Inc. ( Agent ) has been engaged as an agent for the sale of the property located at by 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.
INVESTMENT OVERVIEW PRICE: $3,400,000 CAP RATE: 8.00% NET OPERATING INCOME: $271,992 BUILDING AREA: LAND AREA: 11,834+ Square Feet 0.90+ Acres YEAR BUILT: 2008 OWNERSHIP: Fee Simple Interest OCCUPANCY: 100% $1.49 Planet Cleaners Tienda Rio Lempa The operators of this family run business have been in the dry cleaning industry for over 20 years. They have three other locations currently and have been at this site since 2009. The onsite cleaning plant utilizes green technology with water based cleaning solvent. Tienda Rio Lempa is a Mexican grocer that offers authentic options from imported and national leading Mexican food brands and Latin products. There are four locations in total in the city of Houston and have been operating for over 15 years. El Chinampa El Chinampa is an authentic full service single unit Mexican restaurant and was also the first tenant at the Shops at Wallisville. Penguin s Nail Spa The operator of this high end nail salon has operated multiple salons for over 15 years. Little Caesars Pizza The UPS Store Mosaic Dental Corporate Lease. Little Caesar s is based in Detroit, Michigan and opened its doors in 1959. Today the company has over 3,600 locations in all 50 US States. Little Caesar s is well known for its HOT-N-READY pizzas which were introduced in 2004 negating the need for customers to call ahead. Single unit operator, franchise owned location. The UPS Store network is the world's largest franchisor of retail shipping, postal, printing and business service centers with over 4,700 locations. A local dentist office specializing in general family and children dentistry. There are two doctors on staff who graduated from University of Houston Dental School. 3
INCOME / EXPENSE PROFORMA Sale Price $3,400,000 Price Per Square Foot $287 Capitalization Rate 8.00% Total Rentable Area (Square Feet) 11,834 Potential Gross Revenue Price/SF Scheduled Base Rental Revene $24 $281,624 CAM Reimbursement Revenue Real Estate Tax Reimbursement Revenue Insurance Reimbursement Revenue Management Efffecive Gross Revenue $24 $281,624 Operating Expenses CAM Expenses Real Estate Taxes Insurance Management Vacancy (3% of Base Rental Revenue) $8,449 Reserves ($0.10 PSF) $1,183 Total Operating Expense $9,632 Equals: Operating Income $271,992 ADJACENT RETAIL 4
Rent roll Square Current Lease Term Years Rent Rent Lease Tenant Feet GLA Begin End Remain Begin Monthly PSF Annually PSF Type Option Information $1.49 Planet Cleaners 2,603 22% Sep-2009 Oct-2019 6.0 Current $5,206 $2.00 $62,472 $24.00 1, 5 Year Option to Renew Suite 100 Sept-2014 $5,727 $2.20 $68,719 $26.40 Fair Market Value Option 1 Oct-19 FMV FMV FMV FMV Tienda Rio Lempa 1,059 9% May-2011 May-2016 2.5 Current $2,295 $2.17 $27,534 $26.00 1, 5-Year Option to Renew Suite 300 Option 1 May-2016 $2,383 $2.25 $28,593 $27.00 10% Rent Increase El Chinampa Restaurant 1,497 13% May-2009 May-2014 0.5 Current $2,994 $2.00 $35,928 $24.00 1, 5-Year Option to Renew Suite 400 Option 1 May-2014 FMV FMV FMV FMV Fair Market Value Penguin's Nail Spa 1,400 12% Oct-2010 Oct-2015 2.0 Current $2,683 $1.92 $32,200 $23.00 1, 5-Year Option to Renew Suite 500 Option 1 Oct-2015 $2,952 $2.11 $35,420 $25.30 10% Rent Incrase Little Caesar Enterprises 1,475 12% Jun-2012 Jun-2017 3.7 Current $2,704 $1.83 $32,450 $22.00 3,5-Year Options to Review Suite 600 Option 1 Jun-2017 $2,974 $2.02 $35,695 $24.20 10% Rent Increases Option 2 Jun-2022 $3,272 $2.22 $39,264 $26.62 Option 3 Jun-2027 $3,599 $2.44 $43,188 $29.28 UPS Store 1,400 12% Nov-2010 Oct-2015 2.0 Current $2,566 $1.83 $30,800 $22.00 1, 5-Year Option to Renew Suite 800 Option 1 Nov-2015 FMV FMV FMV FMV Fair Market Value Mosaic Dental 2,400 20% Jul-2010 Jul-2015 1.7 Current $4,300 $1.79 $51,600 $21.50 1, 5-Year Option to Renew Suite 600 Option 1 Jul-2015 FMV FMV FMV FMV Fair Market Value Pylon Sign Rent $720 $8,640 6 of 7 Tenants Pay $1,440 / Year Pylon Sign is Full TOTALS 11,834 100% Current $23,468 $281,624 ADJACENT RETAIL 5
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Aerial photograph Houston Beltway 8 (92,000 Cars / Day) New Forest Crossing Shops at Stone Parke Lance Corporal Anthony Aguirre Jr. High School 10
LOCATION OVERVIEW IMMEDIATE TRADE AREA The subject property is located near the intersection of Houston Beltway 8 (92,000 Cars / Day) and Wallisville Road (31,193 Cars / Day). Houston Beltway 8 is an outer ring road that encircles the city of Houston and provides direct access between the city s northern suburbs and the Houston Ship Channel which is just west of the site. Wallisville Road is a primary arterial road that traverses the northeastern part of the Greater Houston area and connects the Houston Ship Channel with the Houston central business district. The traffic volumes, growth, population density, and accessibility of the immediate trade area have attracted numerous nationally known retail brands to the trade area. The subject property benefits significantly from a densely populated surrounding residential area and robust population growth. 15,533 people reside within a 1-mile radius of the site. The population within this radius is projected to grow at a 7.0% rate over the next 5-years. The subject property is across Beltway 8 from a Walmart Supercenter and the New Forest Crossing (342,942 SF) shopping center. This development is anchored by Lowe s Home Improvement and includes big box retailers such as Petsmart, Big Lots, Ross, and Anna s Linens. CVS, Buffalo Wild Wings, Carino s, and Applebee's are also located in New Forest Crossing. The site is across from the Shops at Stone Park (261,427 SF). This complex is anchored by JC Penney, Best Buy, Staples, Marshall s, and Party City. Chipotle and Chick-fil-A are also located in this shopping center. Additional nearby retailers include Verizon Wireless, Panera Bread, Wingstop, JPMorgan Chase Bank, Taco Bell, Wendy s Discount Tire, and La Quinta. CHANNELVIEW / GALENA PARK, TEXAS The subject property is located in an unincorporated part area of Harris County adjacent to Galena Park (Population: 10,887) to the west and Channelview (Population: 38,289) to the east. The growth of this area has been driven primarily by the Houston Ship Channel. The channel is a 50-mile waterway that is part of the Port of Houston and is the conduit for ocean-going vessels between the Houstonarea shipyards and the Gulf of Mexico. The channel hosts more than 60 ship and 340 barge movements daily and serves as a backbone to shipping petroleum refined at the numerous adjacent facilities. Oil giants which include Exxon, Royal Dutch Shell, Valero, and Lyondell Basell operate refineries in the area. These 5 facilities alone refine over 1.35 million barrels of oil per day. Local growth in the oil and gas industry has led to a boom in engineering, logistics, refining, and pipeline work making the area surrounding the Houston Ship Channel a highly desirable residential location. HOUSTON-SUGAR LAND-BAYTOWN METROPOLITAN AREA The Houston-Sugar Land-Baytown Metropolitan Statistical Area (MSA), colloquially known as Greater Houston, is the 6 th largest in the United States with a population of 5,946,800. From 2000 to 2030, the metropolitan area is projected by Woods & Poole Economics to rank fifth in the nation in population growth adding 2.66 million people. In 2006, Greater Houston ranked 1 st in Texas and 3 rd in the U.S. within the category of "Best Places for Business and Careers" by Forbes. The Greater Houston Gross Metropolitan Product (GMP) in 2005 was $308.7 billion, up 5.4 percent from 2004 in constant dollars. By 2010, the GMP rose to $384 billion, 5 th in the nation. Only 28 nations other than the United States have a GDP exceeding the Greater Houston GMP. Mining, which in Houston is almost entirely oil and gas exploration and production, accounts for 11% of Greater Houston's GMP. Houston is 2 nd to New York City in Fortune 500 headquarters. Galveston Bay and the Buffalo Bayou together form one of the most important shipping hubs in the world, and the Port of Houston, the Port of Texas City, and the Port of Galveston are all major seaports located in Greater Houston. The area is one of the leading centers of the energy industry, particularly petroleum processing, and many companies have large operations in this region. The MSA comprises the largest petrochemical manufacturing area in the world, including for synthetic rubber, insecticides, and fertilizers. Much of metro area's success as a petrochemical complex is enabled by the Houston Ship Channel. The area is also the world's leading center for building oilfield equipment, and is a major center of biomedical research, aeronautics, and high-technology. Because of these economic trades, many residents have moved to the Houston area from other U.S. states, as well as hundreds of countries worldwide. Houston is home to the Texas Medical Center the largest medical center in the world several universities (including Rice University, Texas Southern University, and The University of Houston), and two of the largest systems of higher learning in the United States (The Houston and Lone Star Community College systems). The University of Houston s annual impact on the Houston-area's economy alone equates to that of a major corporation: $1.1 billion in new funds attracted annually to the Houston area, $3.13 billion in total economic benefit, and 24,000 local jobs generated. CNN/Money and Money Magazine have recognized 5 cities in the Greater Houston area the past 3-years as part of its 100 Best Places to Live in the United States. 11
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DEMOGRAPHICS Demographic snapshot Radius 1 Mile 3 Mile 5 Mile Population: 2016 Projection 16,615 103,817 161,174 2011 Estimate 15,533 96,656 151,604 2010 Census 15,325 95,366 150,782 Growth 2011-2016 7.00% 7.40% 6.30% Growth 2010-2011 1.40% 1.40% 0.50% Households: 2016 Projection 5,353 31,275 47,637 2011 Estimate 5,049 29,379 45,142 2010 Census 4,990 29,007 44,901 Growth 2011-2016 6.00% 6.50% 5.50% Growth 2010-2011 1.20% 1.30% 0.50% Owner Occupied 3,679 18,094 27,454 Renter Occupied 1,370 11,285 17,688 2011 Avg Household Income $68,985 $59,403 $55,861 2011 Med Household Income $57,183 $46,635 $43,165 2011 Per Capita Income $21,951 $18,087 $16,833 2011 Households by Household Inc: Income Less than $15,000 448 3,666 6,422 Income $15,000 - $24,999 453 3,243 5,409 Income $25,000 - $34,999 538 3,784 5,996 Income $35,000 - $49,999 676 4,830 7,571 Income $50,000 - $74,999 1,072 6,002 9,014 Income $75,000 - $99,999 854 3,781 5,241 Income $100,000 - $149,999 791 2,966 4,021 Income $150,000 - $199,999 122 619 838 Income $200,000+ 96 488 632 Downtown Houston, Texas Houston Ship Channel 14