Crestwood Plaza

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Crestwood Plaza CRESTWOOD PLAZA FLORESVILLE, TX (SAN ANTONIO MSA) CONFIDENTIAL OFFERING MEMORANDUM CRESTWOOD PLAZA CONFIDENTIAL OFFERING MEMORANDUM 534 10TH STREET FLORESVILLE, TX 78114 presented by KEVIN CATALANI PARTNER 210.841.3237 [email protected] REATA REAL ESTATE INVESTMENT SALES MEMORANDUM OFFERING 1100 NE Loop 410, Suite 400 San Antonio, TX 78209 TEL 210.930.4111 FAX 210.930.1114 REATAREALESTATE.COM Information contained was obtained from sources believed reliable, however, REATA Real Estate Services, LP, makes no guarantees, warranties or representations as to the completeness or accuracy thereof. The presentation of this project is submitted subject to the errors, omissions and change of price or conditions prior to lease or withdrawal. ©REATA Real Estate Services, LP CONFIDENTIAL OFFERING MEMORANDUM — CRESTWOOD PLAZA SECTION I.. ... ... ... ... ... ... EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS SECTION II . ... ... ... ... ... ... PROPERTY PHOTOS SECTION III .................. PROPERTY OVERVIEW SITE DESCRIPTION MAP AERIALS OF CONTENTS TABLE SECTION IV ... ... ... ... ... ... FINANCIAL OVERVIEW FINANCIAL SUMMARY RENT ROLL CASH FLOW STATEMENT CASH FLOW ASSUMPTIONS TENANT PROFILES SECTION V .................. TRADE AREA OVERVIEW SAN ANTONIO MARKET OVERVIEW DEMOGRAPHIC PROFILE SECTION VI ... ... ... ... ... ... AGENCY DISCLOSURE CONFIDENTIAL OFFERING MEMORANDUM — CRESTWOOD PLAZA EXECUTIVE SUMMARY REATA Investment Sales has been exclusively retained to offer for sale Crestwood Plaza (the “Property”), a 28,238 square foot neighborhood retail center located in Floresville, Texas (San Antonio MSA). Floresville is a growing community situated just south of San Antonio and just north of the oil and gas discoveries in the Eagle Ford Shale region. Crestwood Plaza is positioned along 10th Street/US 181, the major thoroughfare traveling through Floresville, providing great visibility and exposure for the center. The Property is 100% occupied and anchored by a strong-performing Dollar Tree. National tenants make up 65% of the rent roll and 69% of the rental revenue, creating secure, stable cash flow that yields attractive day one returns. INVESTMENT HIGHLIGHTS RAPIDLY GROWING COMMUNITY WITHIN THRIVING SAN ANTONIO MSA Floresville has experienced estimated population growth of 27.7% since 2000, driven in part by its proximity to rapidly growing San Antonio (25 minutes to the north) and the significant oil and gas region of South Texas known as the Eagle Ford Shale. ROBUST RETAIL SUBMARKET Crestwood Plaza is located in the Wilson County Retail Submarket, which boasts an occupancy rate of 97.5% according to CoStar, an increase of 1.62% from last year. NATIONAL TENANT LINEUP National tenants Dollar Tree, Cato Fashions, State Farm and Anytime Fitness make up 65% of the rent roll and 69% of the rental revenue. STABILIZED ASSET WITH ABILITY TO CREATE VALUE Crestwood Plaza is 100% occupied, but has the ability to increase NOI through pad site development on included land parcels. IDEAL POSITIONING ALONG US 181 (10TH STREET) In addition to its visibility and exposure along the most heavily traveled thoroughfare in Floresville, the asset is positioned in between Walmart (to the north) and HEB (to the south). PRICED WELL BELOW REPLACEMENT COST $122.99 per square foot at asking price. CONFIDENTIAL OFFERING MEMORANDUM — CRESTWOOD PLAZA SITE DESCRIPTION PRICING ADDRESS ASKING PRICE 534 10th Street $3,473,000 Floresville, Texas 78114 YEAR BUILT IN-PLACE CAP RATE 1983/2014 8.10% GLA PRICE PER SQUARE FOOT 28,238 SF $122.99 SITE DESCRIPTION PERCENT LEASED 100% KEY TENANTS Dollar Tree, Cato, Anytime Fitness LAND AREA 3.681 acres (Lot 1: Shopping Center) 0.429 acres (Lot 2) 1.392 acres (Lot 3) 5.502 acres PARKING SPACES 209 parking spaces (7.40/1,000 SF) TRAFFIC COUNTS N 10th Street/US Highway 181: 22,376 CPD DEMOGRAPHIC SNAPSHOT 1 Mile 3 Miles 5 Miles 2018 Estimated Population 2,166 8,891 11,903 2018 Estimated Households 647 2,732 3,702 Daytime Population 1,352 3,508 3,918 Average Household Income $73,182 $71,203 $75,158 5 CONFIDENTIAL OFFERING MEMORANDUM — CRESTWOOD PLAZA MAP CRESTWOOD PLAZA 6 CONFIDENTIAL OFFERING MEMORANDUM — CRESTWOOD PLAZA AERIALS CRESTWOOD PLAZA 10th ST 181 26,593 CPD STANDISH ST 181 97 4th ST FLOORESVILLE ELEMENTARY SOUTH 10th ST 97 FLOORESVILLE FLOORESVILLE HIGH SCHOOL MIDDLE SCHOOL STANDISH ST 181 0 .5 miles 7 CONFIDENTIAL OFFERING MEMORANDUM — CRESTWOOD PLAZA CRESTWOOD PLAZA 10th STREET AERIALS 10th STREET CPD 26,771 10th STREET 10th STREET CONFIDENTIAL OFFERING MEMORANDUM — CRESTWOOD PLAZA FLORESVILLE MIDDLE SCHOOL FLORESVILLE HIGH SCHOOL 10th STREET AERIALS CRESTWOOD PLAZA 10th STREET 26,771 10th STREET CPD 10th STREET CONFIDENTIAL OFFERING MEMORANDUM — CRESTWOOD PLAZA FLORESVILLE MIDDLE SCHOOL AERIALS CRESTWOOD PLAZA 0.429 ACRES LOT 2 (INCLUDED) 1.392 ACRES LOT 3 (INCLUDED) TREET 1 CPD 7 10th S 6,7 2 STREET 10th CONFIDENTIAL OFFERING MEMORANDUM — CRESTWOOD PLAZA FINANCIAL SUMMARY GLA PERCENT LEASED IN-PLACE NOI 28,238 SF 100% $281,320 PRICING ASKING PRICE ASKING PRICE PSF IN-PLACE CAP RATE $3,473,00 $122.99 8.10% FINANCIAL OVERVIEW CONFIDENTIAL OFFERING MEMORANDUM — CRESTWOOD PLAZA RENT ROLL % of Lease Term Annual Base Rent Escalations Reimbursement Suite Tenant SF Renewal Options Property Start End PSF Total Date PSF Total Notes NNN; does not reimburse management fee Three 5-year options at: A Dollar Tree 8,000 28.33% Feb-14 Feb-19 $8.50 $68,000 1st: $9.00; 2nd: $9.50 Pro-rata share based on a 3rd: $10.00 denominator of 29,667 SF NNN including management fee Two 5-year options at Market, not to exceed A-1 Floresville Dental 1,850 6.55% May-14 Oct-24 $20.00 $37,000 Oct-19 $21.00 $38,850 5% cap on CAM charges 3% of the last month's rental rate. FINANCIAL OVERVIEW Pro-rata share based on a Four 5-year options at: B Cato Fashions 4,000 14.17% Aug-14 Jan-20 $8.50 $34,000 denominator of 30,000 SF 1st: $9.00; 2nd: $9.50 3% annual cap on CAM, INS and RET 3rd: $10.00; 4th: $10.50 NNN including management fee; however, MF not to exceed 10% of Two 5-year options at Market, not to exceed C World Finance Corp. 1,080 3.82% Oct-14 Sep-19 $14.71 $15,887 Common Area Costs 3% of the last month's rental rate. Controllable Common Area Expenses capped at 5%, non-cumulative Two 5-year options at Market, not to exceed C-2 State Farm 1,200 4.25% Jun-14 Jun-21 $18.00 $21,600 NNN including management fee 3% of the last month's rental rate. Two 5-year options at: D Anytime Fitness 5,000 17.71% Jul-16 Jul-22 $15.25 $76,250 Aug-19 $15.75 $78,750 NNN including management fee 1st: Months 1-30 $16.25, Months 31-60 $16.75; 2nd: Months 1-30 $16.75, Months 31-60 $17.75 Two 5-year options at: E Warrior Cheerleading 7,108 25.17% Jun-17 May-22 $4.75 $33,763 NNN including management fee 1st: Months 1-30 $5.55, Months 31-60, $5.75; 2nd: Months 1-30 $6.25, Months 31-60 $6.75 TOTAL AREA 28,238 $286,500 TOTAL LEASED AREA 28,238 100.00% TOTAL AVAILABLE AREA 0 0.00% 12 CONFIDENTIAL OFFERING MEMORANDUM — CRESTWOOD PLAZA CASH FLOW STATEMENT IN-PLACE PER SF Base Rent Occupied Space $288,004 $10.20 GROSS POTENTIAL RENT $288,004 $10.20 Expense Reimbursements FINANCIAL OVERVIEW Real Estate Taxes $48,790 $1.73 Insurance $12,227 $0.43 CAM $22,392 $0.79 Management Fee $10,045 $0.36 Total Expense Reimbursements $93,455 $3.31 EFFECTIVE GROSS INCOME $381,459 $13.51 Expenses Real Estate Taxes $49,885 $1.77 Insurance $12,502 $0.44 Common Area Maintenance $22,895 $0.81 Management Fee (4.00%) $14,857 $0.53 Total Expenses $100,139 $3.55 NET OPERATING INCOME $281,320 $9.96 13 CONFIDENTIAL OFFERING MEMORANDUM — CRESTWOOD PLAZA CASH FLOW ASSUMPTIONS ANALYSIS PROPERTY TAXES Snapshot of In-Place Cash Flow Based on 2018 BCAD assessed value and corresponding millage rate below: RENTAL INCOME JURISDICTION 2018 TAX RATE • In-Place Cash Flow based on leases in place for a 12-month period beginning January 2019 Wilson CAD 0.000000 Floresville City 0.443100 OPERATING EXPENSES Wilson County 0.473800 Based on Ownership’s Trailing-12 Actual Expenses, unless otherwise Wilson Co Hosp 0.116600 noted below. Expense detail on page 12. FINANCIAL OVERVIEW San Antonio River Authority 0.018580 MANAGEMENT FEE Floresville ISD 1.445000 4.00% of gross revenue Evergreen UWC Dist 0.007400 TOTAL 2.504480 EXPENSE REIMBURSEMENT All tenants are triple net and pay their pro-rate share of CAM, Taxes & Insurance. Please see rent roll for additional detail regarding specific reimbursement methods. 14 CONFIDENTIAL OFFERING MEMORANDUM — CRESTWOOD PLAZA EXPENSE DETAIL CURRENT PER SF Real Estate Taxes $49,885.24 $1.77 Insurance $12,502.00 $0.44 Common Area Maintenance Landscape Maintenance 5,550.00 0.20 Repairs & Maintenance 1,422.00 0.05 Security Service 1,014.00 0.04 Electricity 10,082.00 0.36 Gas 345.00 0.01 Water 4,482.00 0.16 Total Common Area Maintenance $22,895.00 $0.81 Management Fee (4.00%) $14,856.55 $0.53 TOTAL EXPENSES $100,138.79 $3.55 CONFIDENTIAL OFFERING MEMORANDUM — CRESTWOOD PLAZA TENANT PROFILES TENANT PROFILES Square Feet 8,000 Square Feet 4,000 Square Feet 5,000 TENANT PROFILES % of Building GLA 28.33% % of Building GLA 14.17% % of Building GLA 17.71% In-Place Rent PSF $8.50 In-Place Rent PS $8.50 In-Place Rent PS $15.25 Lease Expiration February 2019 Lease Expiration January 2020 Lease Expiration July 2022 Website dollartree.com Website catofashions.com Website anytimefitness.com Ticker Symbol NASDAQ: DLTR Ticker Symbol NASDAQ: CATO Ticker Symbol Private Headquartered in Chesapeake, VA, Dollar Tree The Cato Corporation, together with its Founded in 2002, Anytime Fitness is a 24-hour is the largest and most successful single-price- subsidiaries, operates as a specialty retailer of health and fitness club based in Woodbury, Min- point retailer in North America, operating thou- fashion apparel and accessories primarily in the nesota.
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