OFFERING MEMORANDUM
PORT LAVACA CROSSING
PORT LAVACA , TEXAS OFFERING MEMORANDUM
Chad Knibbe, CCIM Stephen Berchelmann Principal V.P. Investment Sales [email protected] [email protected]
Butch Lagred Garrett Wood Senior Investment Sales Agent Senior Investment Sales Agent [email protected] [email protected]
This information is deemed to be from reliable sources. Foresite Real Estate, Inc. does not verify or guarantee any such information. This is provided for marketing purposes only. Purchaser assumes the responsibility of independently verifying all information. TABLE OF CONTENTS
EXECUTIVE SUMMARY
THE OFFERING 5
PROPERTY DETAILS 6
THE PROPERTY
AERIALS 10
SITE MAPS 11
SITE PLAN 12
THE FINANCIALS
PRICING SUMMARY 14
INCOME & EXPENSES 15
RENT ROLL 16
LEASE ROLLOVER 17
LEASE SUMMARY 18
TENANT DESCRIPTIONS 19
THE MARKET
MARKET OVERVIEW 22
ECONOMIC DRIVERS 23
PORT LAVACA CROSSING | 3 Executive summary
THE OFFERING / PROPERTY DETAILS /
PORT LAVACA CROSSING | 4 EXECUTIVE SUMMARY
PORT LAVACA CROSSING 300 Tiney Browning Blvd. | Port Lavaca, Texas 77979
TOTAL LAND SIZE: 1.07 acres
TOTAL BUILDING SIZE: 12,000 square feet
OCCUPANCY: 100% $3,100,000 7.12%
YEAR BUILT: 2016 PRICE CAP RATE
PRICE: $3,050,000
PRICE PSF: $254.17 • Shadowed by the only Walmart Supercenter within 30 miles
CAP RATE: 7.05% • 100% Leased with strong tenant mix • Shares entrance with Walmart Supercenter and Fuel Station • Six major hotels within 1-mile from Property • 13,500 VPD on State Highway 35 directly in front of Property • Daytime population in Port Lavaca nearing 25,000 • Three Industrial Plants located within 15 minutes from Property: Dow Chemical, Formosa Plastics, and The Interplast Group employing over 6000
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk of any inaccuracies
PORT LAVACA CROSSING | 5 100% OCCUPANCY
12,000 SF BUILDING SIZE
PROPERTY DETAILS 1.07 AC 56 spaces Port Lavaca is a city in Calhoun County, Texas Parking LOT SIZE located on Lavaca Bay (Gulf Coast) and is part Zoning Commercial of the Victoria, Texas Metropolitan Statistical Area. Victoria, with a population of 60,603 is Tax authority Calhoun county located just 26.1 miles away. Corpus Christi, Texas located 76.6 miles south of Port Lavaca, Building exterior Metal/tilt wall has a population of 277,454. The most Roof Flat/ metal common employment sectors for those who live in Port Lavaca, TX, HVAC Roof mounted units 2016 are Manufacturing, Construction, and Retail YEAR BUILT trade. Site lighting Pole and building mounted
Parking lot New/ asphalt
PORT LAVACA CROSSING | 6 THE PROPERTY
PROPERTY PHOTOS / AERIAL / SITE PLAN /
PORT LAVACA CROSSING | 7 PROPERTY PHOTO PORT LAVACA CROSSING
PORT LAVACA CROSSING | 8 PROPERTY PHOTO PORT LAVACA CROSSING
PORT LAVACA CROSSING | 9 PORT LAVACALAVACA AERIAL AERIAL
POPULATION DENSITY (2015) 21,666
MEDIAN HOUSEHOLD INCOME GROWTH RATE Y/O/Y 7.43%
MEDIAN HOUSEHOLD INCOME $51,078
PORT LAVACA CROSSING | 10 REGIONAL AERIAL
VICTORIA
PORT LAVACA CROSSING | 11 SITE PLAN
PORT LAVACA CROSSING | 12 THE FINANCIALS
PRICING SUMMARY / OPERATING STATEMENT / RENT ROLL / LEASE ROLLOVER / LEASE SUMMARY / LEASE EXPIRATIONS /
PORT LAVACA CROSSING | 13 PRICING SUMMARY
SUMMARY Price $3,100,000 Down Payment $1,085,000 35% Number of Suites 6 Price Per SqFt $258.33 Gross Leasable Area (GLA) 12,000 SF Lot Size (SqFt) 46,609 SF Year Built/Renovated 2015
RETURNS YEAR 1 YEAR 2 CAP Rate 7.12% 7.36% Cash-on-Cash 7.95% 8.63% Debt Coverage Ratio 1.64 1.70
Financing 1st Loan Loan Amount $2,015,000 Loan Type New Interest Rate 4.50% Amortization 25 Years Year Due 2028 Loan information is subject to change.
PORT LAVACA CROSSING | 14 INCOME & EXPENSE
INCOME YEAR 1 PER SF YEAR 2 PER SF
Scheduled Base Rental Income 233,376 20.09 241,080 20.09 Expense Reimbursement Income CAM 37,409 3.12 38,158 3.18 Insurance 10,085 0.84 10,287 0.86 Real estate Taxes 31,060 2.59 35,717 2.98 Management Fees 5,913 0.49 6,031 0.50
Total Reimbursement Income $84,467 100% $7.04 $90,193 100% $7.52 Potential Gross Revenue 317,843 331,274 General Vacancy (12,714) 4.0% (13,251) 4.0% Effective Gross Revenue $305,129 $26.50 $318,023 $26.50
OPERATING EXPENSES YEAR 1 PER SF YEAR 2 PER SF Utilities 1,020 0.09 1,040 0.09 Administrative Costs 4,413 0.37 4,501 0.38 Repairs & Maintenance 13,042 1.09 13,303 1.11 Landscaping 3,947 0.33 4,027 0.34 Operating Expenses 14,988 1.25 15,288 1.27 Insurance 10,085 0.84 10,287 0.86 Real Estate Taxes 31,060 2.59 35,717 2.98 Management Fee 5,913 0.49 6,031 0.50 Total Expenses $84,467 $7.04 $90,193 $7.52
NET OPERATING INCOME $220,662 $227,830
Notes and assumptions to the above analysis are on the following page.
* Year 1 & 2 columns include potential income from the new lease with Edward Jones
PORT LAVACA CROSSING | 15 PROPERTY RENT ROLL
Annual Tenant Name Suite Square % Bldg Lease Dates Exp. Rent per Total Rent Total Rent Rent Changes Lease Feet Share Comm. Sq. Ft. Per Month Per Year Escalations to Type
AT&T A 1,400 11.7% 6/22/16 6/30/21 $28.00 $3,267 $39,204 N/A N/A NNN
San Jacinto Title B 1,600 13.3% 8/5/16 8/31/19 $18.50 $2,467 $29,600 Sep-2019 $2,933 NNN
Edward Jones C 1,200 10.0% 7/1/18 10/31/23 $23.45 $2,345 $28,140 Jul-2019 $2,392 NNN
SCS Vapes D 1,140 9.5% 10/18/16 10/31/19 $23.51 $2,233 $26,796 Nov-2019 $2,456 NNN
Covington Credit E 1,140 9.5% 5/23/16 5/31/21 $24.35 $2,313 $27,756 N/A N/A NNN
Anytime Fitness E 5,520 46.0% 7/22/16 7/31/22 $14.50 $6,670 $80,040 Aug-2018 $6,900 NNN
Total 12,000 $19.29 $19,295 $231,536
PORT LAVACA CROSSING | 16 LEASE ROLLOVER SUMMARY
100% 20
80% Number of Tenants 15
60%
10
40% Percentage of Square Footage Expiring Footage Square of Percentage 5 20%
0% 0 Jul-2018 Jul-2019 Jul-2020 Jul-2021 Jul-2022 Jul-2023 Jul-2024 Jul-2025 Jul-2026 Jul-2027 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
% of SQFT Expiring Cumulative % of SQFT Expiring Number of Commercial Leases/Tenants Expiring
PORT LAVACA CROSSING | 17 LEASE SUMMARY
Square Bldg Lease Dates Renewal Co-Tenancy Termination First Right Special Lease Expense Operating Expense Tenant Name Suite Feet Share Comm. Exp. Options Clauses Options Of Refusal Provisions Type Caps Reimbursements
Option 1. $3,593.33 Cell Phone 5% on CAM over AT&T A 1,400 11.7% 6/22/16 6/30/21 N/A N/A N/A N/A NNN Option 2. $3,952.67 Sales previous year
San Jacinto Option 1. $2,933.33 5% on CAM over B 1,600 13.3% 8/5/16 8/31/19 N/A N/A N/A N/A N/A NNN Title Option 2. $3,333.33 previous year
Following 30th month with 90 day prior notice Edward 10/31/2 Restrictions: Sec. 9 3.5% on CAM over C 1,200 10.0% 7/1/18 Option 1. $2,700.00 N/A and three N/A N/A NNN Jones 3 of Lease Agreement previous year installments of then current monthly rent. Tenant shall not directly or indirectly 10/31/1 operate a similar SCS Vapes D 1,140 9.5% 10/18/16 Option. $2,455.75 N/A N/A N/A N/A NNN 15% of CAM 9 business within a 5 mile radius of leased space Exclusion: Landlord Yes. Walmart shall not lease to Co-Tenancy other payday, Covington Option 1. $2,926.00 105% on CAM over E 1,140 9.5% 5/23/16 5/31/21 Per Sec.12.31 N/A N/A installment lender N/A NNN Credit Option 2. $3,218.60 previous year of Lease other than FDIC Agreement insured banks and ATMs.
Anytime Option 1. $7,705.00 E 5,520 46.0% 7/22/16 7/31/22 N/A N/A N/A N/A N/A NNN 15% of CAM Fitness Option 2. $8,050.00
PORT LAVACA CROSSING | 18 TENANT PROFILE
Anytime Fitness is a 24-hour health and fitness club franchise. The With more than 600 locations coast-to-coast in 22 states, Prime company hit 3,000 gyms worldwide in 2015, a hefty milestone Communications is the largest privately held AT&T Authorized made even more remarkable because the fitness franchise got Retailer in the US. Established in 1999, we take great pride in there in 13 years, after opening its first gym in 2002. With 2 million being one of AT&T's premier partners. members worldwide, Anytime Fitness is the world’s fastest- growing health club franchise, with plans to grow to 5,000 Their team is comprised of an inclusive and diverse group of locations by 2021. Anytime Fitness has won many awards and people – businessmen and women, industry leaders and sales accolades including: experts – with backgrounds and experiences that create a uniquely dynamic organization. A rich entrepreneurial spirit permeates • #1 Franchise to Watch (2016) ~ Franchise Times everything we do, creating an environment where creativity, • #9 Best Franchise to Buy in 2015 ~ Forbes leadership and teamwork are rewarded, and where individuals and • #6 Great Franchise Bets ~ CNN Money stores can see and feel the fruits of their success. • #1 Top Global Franchise ~ Entrepreneur • #14 America’s Most Promising Companies (2013) ~ Forbes As of the summer of 2016 Prime has operated this AT&T store serving the City of Port Lavaca and the surrounding communities. Prime employs over 2,000 Retail Sales Associates nationwide and as many 10 employees from Port Lavaca, Victoria and other communities.
SIZE 5,520 SF SIZE 1,400 SF
% OF GLA 46.00% % OF GLA 11.70%
LEASE EXPIRATION 07/31/2022 LEASE EXPIRATION 06/30/2021
WEBSITE ANYTIMEFITNESS.COM WEBSITE PRIMECOMMS.COM
PORT LAVACA CROSSING | 19 TENANT PROFILE TENANT PROFILE
Southern Management Corporation, a small loan consumer Edward Jones serves nearly 7 million investors from more offices finance company, offers credit options to customers who do than any other investment firm in America. We attribute a great not qualify for traditional short term credit. It provides short- deal of our success to our principles and personal, long-term term installment loans, related credit insurance, and ancillary approach to investing. products to individuals. Southern Management Corporation was founded in 1986 and is based in Greenville, South We have consistently been ranked among the best companies to Carolina with branch locations in Alabama, Georgia, work for by FORTUNE magazine, and our employees tend to stay Oklahoma, South Carolina, Tennessee, and Texas. with us for years. As a privately owned company, Edward Jones has a very personal feel that’s almost like family. Southern Management Corporation is the parent Company for the following brands: Covington Credit, Southern Finance and Quick Headquartered in Saint Louis, Missouri, Edward Jones has more Credit. than 12,700 branch office locations in the United States and Canada.
SIZE 1,140 SF SIZE 1,200 SF
% OF GLA 9.50% % OF GLA 10.00%
LEASE EXPIRATION 05/31/2021 LEASE EXPIRATION 10/31/2023
WEBSITE MYMONEYTOGO.COM WEBSITE EDWARDJONES.COM
PORT LAVACA CROSSING | 20 THE MARKET
MARKET OVERVIEW / ECONOMIC DRIVERS / DEMOGRAPHICS /
PORT LAVACA CROSSING | 21 MARKET OVERVIEW – PORT LAVACA MARKET OVERVIEW
DEMOGRAPHIC HIGHLIGHTS JOB GROWTH 20,000 POPULATION (10 MILES) 198,368 TRADE AREA POPULATION $62,683 AVG. HOUSEHOLD INCOME
5,934 HOUSEHOLDS (10 MILES)
TOP EMPLOYERS
FORMOSA PLASTICS 3,048 Employees
THE INTERPLAST GROUP 12,288 Employees
DOW – SEADRIFT OPS 1,200 Employees
INVISTA 600 Employees
CATERPILLAR 600 Employees
PORT LAVACA CROSSING | 22 ECONOMIC DRIVERS
Formosa Plastics Corp. has begun work on a $1.7 DOW Chemicals Seadrift Operations site employees Caterpillar is located less than 30 miles from billion expansion of its 2,500 acre petrochemical over 1,200 employees and is the second largest Dow Port Lavaca in the region’s hub of Victoria, TX. complex located in Port Comfort, TX just six-miles facility in Texas spanning over 4,700 acres. Products Caterpillar opened the Victoria plant in 2012 and from Port Lavaca. The plant began in 1983, and manufactured at the site consists of plastics for food, produces hydraulic excavators and expanding to has continued to be one of the major job beverage, automotive parts, toys, and tubing. design and manufacture of truck products. The generators in Port Lavaca and the surrounding company employees over 575 employees. region employing over 3,000 employees.
PORT LAVACA CROSSING | 23 ECONOMIC DRIVERS
In September of 2017, the Dow Chemical Company Green Lake Works, is a 4000+ acre site located Alcoa Corporation (from Aluminum Company of and DuPont USA completed a merger to create about 15 miles southwest of Port Lavaca, 20 miles America) is an American industrial corporation. It DoDuPoint. Three new companies have been created south of Victoria, Texas, and is the largest is the world's sixth largest producer of aluminum. as a result of the merger: an agricultural company, a acrylonitrile plant in the INEOS system. It began in Alcoa is a major producer of primary aluminum, materials science company, and a specialty products 1981 with the start-up of the original two reactors fabricated aluminum, and alumina combined, company. The separation of the three companies is along with the entire water treatment systems, through its active and growing participation in all expected to happen within 18 months. The Dow waste treatment systems, raw material storage, major aspects of the industry: technology, mining, Seadrift plant and the DuPont plant in Victoria County product storage and barge loading and unloading refining, smelting, fabricating, and recycling. will continue as normal at company sites, but as the areas. three companies are established, site plans and employment levels will be determined.
PORT LAVACA CROSSING | 24 PORT LAVACA CROSSING
300 Tiney Browning Blvd. | Port Lavaca, Texas 77979
CON FIDE NTIAL OFFE RING M E MOR AN DUM
EXCLUSIVE LISTING BROKERS
CHAD KNIBBE,CCIM STEPHEN BERCHELMANN GARRET WOOD ANTHONY LAGRED Principal V.P. Investment Sales Senior Agent Senior Agent [email protected] [email protected] [email protected] [email protected] (210) 816-2734 (210) 816-2734 (210) 816-2734 (210) 816-2734
1380 Pantheon Way, Ste 290 T (210) 816-2734 San Antonio, Texas 78232 foresitecre.com Confidentiality and Disclaimer
The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Foresite Real Estate, Inc, and should not be made available to any other person or entity without the written consent of Foresite Real Estate, Inc.. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation.
Foresite Real Estate, Inc. has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Foresite Real Estate, Inc. has not verified, and will not verify, any of the information contained herein, nor has Foresite Real Estate, Inc. conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.
TEXAS BROKER REAL ESTATE LICENSE #598255 INFORMATION ABOUT BROKERAGE SERVICES Texas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.
TYPES OF REAL ESTATE LICENSE HOLDERS: • A BROKER is responsible for all brokerage activities, 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 information about the property or transaction received by the broker; • Answer the client’s questions and present any offer to or counter-offer from the client; and • Treat all parties to a real estate transaction 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 written listing to sell or property management agreement. An owner's agent must perform the broker’s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information 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 written representation agreement. A buyer's agent must perform the broker’s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by the seller or seller’s agent.
AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligations as an intermediary. A broker who acts as an intermediary: • Must treat all parties to the transaction impartially and fairly; • May, with the parties' written 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 instructions of each party to the transaction. • Must not, unless specifically authorized in writing to do so by the party, disclose: o that the owner will accept a price less than the written asking price; o that the buyer/tenant will pay a price greater than the price submitted in a written offer; and o any confidential information or any other information that a party specifically instructs the broker in writing 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 transaction 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 duties and responsibilities to you, and your obligations under the representation 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 notice is being provided for information purposes. It does not create an obligation for you to use the broker’s services. Please acknowledge receipt of this notice below and retain a copy for your records.
Foresite Real Estate, Inc. 9003568 [email protected] 210-816-2734 Licensed Broker / Broker Firm Name or Primary License No. Email Phone Assumed Business Name
Buyer / Tenant / Seller / Landlord Initials Date
Regulated by the Texas Real Estate Commission Information available at www.trec.texas.gov