Mcallen Commerce Center Mcallen, Texas Non-Endorsement & Disclaimer Notice
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OFFERING MEMORANDUM MCALLEN COMMERCE CENTER MCALLEN, TEXAS NON-ENDORSEMENT & DISCLAIMER NOTICE CONFIDENTIALITY & 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 Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. 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. Marcus & Millichap 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, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved. NON-ENDORSEMENT NOTICE Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. Activity ID: ZAA0490003 ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. OFFICES THROUGHOUT THE U.S. AND CANADA www.marcusmillichap.com EXCLUSIVELY LISTED BY GUSTAVO TORRES Associate San Antonio Office Direct: (210) 343-7821 // Fax: (210) 343-7810 [email protected] License: TX 681940 JOSHUA MURPHY Senior Associate San Antonio Office Direct: (210) 343-7847 // Fax: (210) 343-7810 [email protected] License: TX 583585 TABLE OF CONTENTS 02 01 PROPERTY DESCRIPTION // 13 03 EXECUTIVE SUMMARY // 07 FINANCIAL ANALYSIS // 23 04 05 MARKET COMPARABLES // 31 MARKET OVERVIEW // 39 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap section 1 Executive Summary offering summary investment overview investment highlights OFFERING SUMMARY PROPERTY NAME Total Price Total $4,450,000 14 Suites Rentable Square Feet 32,864 SF Price per Square Foot $135.41 Occupancy 92.59% Year Built 2006 Lot Size 2.87 Acres 8 EXECUTIVE SUMMARY EXECUTIVE SUMMARY 9 10 EXECUTIVE SUMMARY McAllen Commerce Center 1100 East Jasmine Avenue, McAllen, TX, 78501 Marcus & Millichap has been exclusively retained to market for sale the McAllen Commerce Center in McAllen, Texas. The property presents a value-add opportunity while boasting a tenant mix of highly regarded professional services companies. McAllen Commerce Center is part of the only Class A business park south of San Antonio known as the 495 Commerce Center. The 110-acre master planned park is home to a multitude of credible businesses and government agencies such as: US Department of Veterans Affairs, US Labor Department, US Drug Enforcement Agency Field Office, and Federal Bureau of Investigation Field Office. The unique building design creates an attractive and timeless appeal. Load bearing tilt-up concrete, 1-1/2” lime-stone panels, low emissivity glass, metal roof, and an exposed steel structure make up the exterior of the building. An attractive atrium decorated with Chinese palm trees complemented with Turkish travertine floors, indirect lighting and stainless-steel fixtures makeup the interior. The 2.87 acres the property is located on is loaded with amenities such as covered parking, attractive landscape, and irrigation system. It also allows for ample parking (approximately 180 parking spaces) or 5.45/1,000. McAllen Commerce Center is an excellent investment opportunity to acquire a unique asset with a long history of attracting and retaining some of South Texas’ most prestigious firms, as well as an opportunity for rent growth backed by the top performing sub market south of San Antonio. INVESTMENT HIGHLIGHTS 41 Percent Of Tenants Have Operated Longer Than 10 Years In Property Priced Far Below Replacement Cost ($135 per Square Foot) 50 Percent Of Tenant Base Paying Below Market Rents/ Opportunity For Future Increases Landlord Favorable Market Fundamentals (Strong Rent Roll, Low Vacancy) No Immediate Attention To Major Ticket Items (Roof, Elevator, HVAC) EXECUTIVE SUMMARY 11 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap section 2 Property Description local and regional maps property summary aerial map property photos 14 PROPERTY DESCRIPTION INSERT LOCAL MAP HERE PROPERTY DESCRIPTION 15 PROPERTY SUMMARY // McAllen Commerce Center Price $4,450,000 Property Address 1100 East Jasmine Avenue, McAllen, TX Assessor’s Parcel Number F6030-11-000-000B-00 Zoning Commercial SITE DESCRIPTION Number of Floors 2 Year Built/Renovated 2006 Rentable Square Feet 32,864 Ownership Fee Simple Lot Size 2.87 Acres Parking 180 Parking Ratio 5.45/1,000 SF CONSTRUCTION Foundation Slab Framing Tilt-Up Concrete Exterior Steel Parking Surface Concrete Roof Metal 16 PROPERTY DESCRIPTION PROPERTY DESCRIPTION 17 18 PROPERTY DESCRIPTION PROPERTY DESCRIPTION 19 20 PROPERTY DESCRIPTION PROPERTY DESCRIPTION 21 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap section 3 Financial Analysis pricing details operating data tenant summary lease expiration summary operating statement PRICING DETAILS // McAllen Commerce Center PRICE $4,450,000 Down Payment $1,335,000 Down Payment % 30% Number of Suites 14 Price Per SqFt $135.41 Rentable Built Area (RBA) 32,864 SF Lot Size 2.87 Acres Year Built/Renovated 2006 Occupancy 92.59% RETURNS CURRENT PRO FORMA CAP Rate 7.95% 8.90% Cash-on-Cash 9.73% 12.89% Debt Coverage Ratio 1.58 1.77 FINANCING 1st Loan Loan Amount $3,115,000 Loan Type New Interest Type 5.25% Amortizaion 25 Years Year Due 2024 *Loan information is subject to change. Contact your Marcus and Millichap Capital Corporation representative. 24 FINANCIAL ANALYSIS OPERATING DATA // McAllen Commerce Center INCOME CURRENT PRO FORMA Scheduled Base Rental Income $628,500 $720,835 Potential Gross Revenue $628,500 $720,835 General Vacancy 0.0% ($0) 6.0% ($43,250) Effective Gross Revenue $628,500 $677,585 Less: Operating Expenses 43.7% ($274,601) 41.6% ($281,553) Net Operating Income $353,899 $396,032 Cash Flow $353,899 $396,032 Debt Service ($223,999) ($223,999) Net Cash Flow After Debt Service 9.73% $129,900 12.89% $172,033 Principal Reduction $61,938 $65,269 Total Return 14.37% $191,838 17.78% $237,302 OPERATING EXPENSES CURRENT PRO FORMA CAM $133,713 $136,387 Insurance $12,827 $13,084 Real Estate Taxes $102,921 $104,979 Management Fee $25,140 $27,103 Total Expenses $274,601 $281,553 Expenses/Suite $19,614 $20,111 Expenses/SF $8.38 $8.57 FINANCIAL ANALYSIS 25 TENANT SUMMARY // McAllen Commerce Center LEASE DATES TOTAL SQUARE % BLD ANNUAL TOTAL RENT/ PRO FORMA CHANGES RENT LEASE TENANT SUITE COMM. EXP. RENT/ FEET SHARE RENT/SF YEAR RENT/YEAR ON INCREASE TYPE MONTH C.H Robinson 101 4,435 13.5% 4/1/13 3/31/21 $18.54 $6,852 $82,224 $82,224 Gross Broaddus & Associates 102 1,634 5.0% 1/1/06 12/31/19 $24.10 $3,282 $39,384 $39,384 Gross Broaddus & Associates 103 1,109 3.4% 1/1/06 12/31/19 $22.37 $2,067 $24,804 $24,804 Gross Frank P.