OFFERING MEMORANDUM The Pavilion HOUSTON, TX OFFERING MEMORANDUM KW COMMERCIAL 920 South Fry Road Katy, TX 77450 PRESENTED BY: VICTOR LOFINMAKIN Associate 832.788.1782 victor@victorlofinmakin.com TX #633391 RACHEL BARZILAY Managing Director Of Commercial Real Estate 281.460.9330 rachelbarzilay@kw.com TX #561492
OFFERING MEMORANDUM Confidentiality & Disclaimer HOUSTON, TX All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party s intended use or any and all other matters. Neither KW Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party s active conduct of its own due diligence to determine these and other matters of significance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. KW Commercial makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. KW Commercial does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by KW Commercial Signature in compliance with all applicable fair housing and equal opportunity laws. PRESENTED BY: KW COMMERCIAL 920 South Fry Road Katy, TX 77450 VICTOR LOFINMAKIN Associate 832.788.1782 victor@victorlofinmakin.com TX #633391 RACHEL BARZILAY Managing Director Of Commercial Real Estate 281.460.9330 rachelbarzilay@kw.com TX #561492 We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction. www.kwcommercial.com 2
OFFERING MEMORANDUM THE PROPOSAL PAVILION FOR COMMERCIAL SERVICES PROPERTY INFORMATION 1 PROPERTY INFORMATION THE PAVILION PROPERTY INFORMATION 1 EXECUTIVE SUMMARY ADDITIONAL PHOTOS www.kwcommercial.com 3
1 PROPERTY INFORMATION Executive Summary SALE PRICE: $10,500,000 PRICE PER UNIT: $525,000 CAP RATE: 6.0% NOI: $631,000 LOT SIZE: 6.24 Acres BUILDING SIZE: 102,000 SF YEAR BUILT: 1984 PROPERTY OVERVIEW KW Commercial proud to present a value add opportunity in Southwest Houston. This property could be worth a lot more than asking price if you factor in the size of the land and the cost of rebuilding. The property is significantly underperforming and needs a new owner to get it to its full potential. The seller is willing to do an owner finance with 30% down and a 25 year amortization schedule. PROPERTY FEATURES 100% Occupied with flexible leases Excellent location with backlog of potential tenants Located in the heart of the Southwest shopping district Owner Finance Available Lots of upside at this price CROSS STREETS: Bissonet & Wilcrest www.kwcommercial.com 4
Additional Photos 1 PROPERTY INFORMATION www.kwcommercial.com 5
OFFERING MEMORANDUM THE PROPOSAL PAVILION FOR COMMERCIAL SERVICES LOCATION INFORMATION 2 LOCATION INFORMATION THE PAVILION LOCATION INFORMATION 2 REGIONAL MAP LOCATION MAPS AERIAL MAP
Regional Map 2 LOCATION INFORMATION 10880 Bissonet Street www.kwcommercial.com 7
Location Maps 2 LOCATION INFORMATION www.kwcommercial.com 8
THE PAVILION 2 LOCATION INFORMATION Aerial Map www.kwcommercial.com 9
OFFERING MEMORANDUM THE PROPOSAL PAVILION FOR COMMERCIAL SERVICES FINANCIAL ANALYSIS 3 FINANCIAL ANALYSIS THE PAVILION FINANCIAL ANALYSIS 3 FINANCIAL SUMMARY RENT ROLL
3 FINANCIAL ANALYSIS Financial Summary INVESTMENT OVERVIEW Price $10,500,000 Price per SF $102.94 CAP Rate 6.0% Cash-on-Cash Return (yr 1) - % Total Return (yr 1) - Debt Coverage Ratio - OPERATING DATA Gross Scheduled Income 814,380 Other Income - Total Scheduled Income - Vacancy Cost - Gross Income 814,380 Operating Expenses 183,200 Net Operating Income $631,180 Pre-Tax Cash Flow - FINANCING DATA Down Payment - Loan Amount - Debt Service - Debt Service Monthly - Principal Reduction (yr 1) - www.kwcommercial.com 11
Rent Roll 3 FINANCIAL ANALYSIS TENANT NAME UNIT NUMBER UNIT SIZE (SF) LEASE START LEASE END ANNUAL RENT % OF GLA PRICE PER SF/YR D-Friends Restaurant (Bldg 9555A) 250 6,109 $59,990 5.99 $9.82 Clinic (Bldg 9555) 302 2,000 $24,000 1.96 $12.00 Adult day care (Bldg 9525) Same Adult day care (9525) A 3,375 $30,004 3.31 $8.89 B 7,500 $66,000 7.35 $8.80 Hair Cut Salon (9575) 400 861 $13,742 0.84 $15.96 Instant Tax Services (9575) 200 704 $10,799 0.69 $15.34 La Union Restaurant 250&350 3,710 $59,991 3.64 $16.17 AP International Inc (Grocery Store) 195 6,000 $78,000 5.88 $13.00 Game Room 180 1,450 $23,998 1.42 $16.55 Kingdom Come (Church) His Mercy Daycare (Adult Daycare) 160 4,500 $48,015 4.41 $10.67 156 2,500 $36,000 2.45 $14.40 Mexican Church 140C 3,000 $37,440 2.94 $12.48 Emmanuel Reception (Reception Hall) 140A 6,200 $66,030 6.08 $10.65 #2 Mexican Church 70 1,206 $12,000 1.18 $9.95 Hair Cut Salon 65 844 $8,398 0.83 $9.95 Rose Hall (Current Owner) 10 6,000 $31,200 5.88 $5.20 www.kwcommercial.com 12
Rent Roll 3 FINANCIAL ANALYSIS TENANT NAME UNIT NUMBER UNIT SIZE (SF) LEASE START LEASE END ANNUAL RENT % OF GLA PRICE PER SF/YR Rose Hall (Current Owner) Rose Hall (Current Owner) Rose Hall (Current Owner) Rose Hall (Current Owner) 50 26,000 $138,060 25.49 $5.31 63 4,376 $23,980 4.29 $5.48 140B 2,500 $13,200 2.45 $5.28 140D 6,427 $33,613 6.3 $5.23 TOTALS/AVERAGES 95,262 $814,460 $8.55 www.kwcommercial.com 13
OFFERING MEMORANDUM THE PROPOSAL PAVILION FOR COMMERCIAL SERVICES DEMOGRAPHICS 4 DEMOGRAPHICS THE PAVILION DEMOGRAPHICS 4 DEMOGRAPHICS MAP
Demographics Map 4 DEMOGRAPHICS POPULATION 1 MILE 2 MILES 3 MILES TOTAL POPULATION 26,811 92,437 190,498 MEDIAN AGE 27.8 29.9 31.3 MEDIAN AGE (MALE) 26.2 27.7 29.0 MEDIAN AGE (FEMALE) 28.9 31.2 32.8 HOUSEHOLDS & INCOME 1 MILE 2 MILES 3 MILES TOTAL HOUSEHOLDS 8,948 30,590 63,346 # OF PERSONS PER HH 3.0 3.0 3.0 AVERAGE HH INCOME $35,525 $40,953 $46,530 AVERAGE HOUSE VALUE $96,652 $107,296 $116,756 RACE 1 MILE 2 MILES 3 MILES % WHITE 42.0% 44.4% 44.5% % BLACK 31.9% 29.6% 27.1% % ASIAN 13.7% 13.0% 15.6% % HAWAIIAN 0.0% 0.1% 0.1% % INDIAN 0.0% 0.2% 0.2% % OTHER 11.1% 11.6% 11.5% ETHNICITY 1 MILE 2 MILES 3 MILES % HISPANIC 45.9% 47.3% 44.7% * Demographic data derived from 2010 US Census www.kwcommercial.com 15