5801 Babcock Road, San Antonio, Texas
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actual location 5801 babcock road, san antonio, texas net lease property group ALL VACUUM BABCOCK SOCIAL PUB BABCOCK ROAD: 24,000 VPD HUEBNER ROAD: 31,000 VPD table of contents 4 Executive summary 5 property description 6 investment highlights 7 aerials & Site plan 10 lease summary 11 surrounding uses 12 tenant overview 13 area overview investment contacts Chris bosworth will pike brian pfohl Matt mountjoy leah lindell chris cozby Vice Chairman Vice Chairman Senior Vice President Capital Markets Manager Capital Markets Analyst CBRE TX Licensee +1 404 923 1486 +1 404 923 1381 +1 404 504 7893 +1 404 504 5939 +1 404 812 5136 [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] 3 actual location executive summary The CBRE Net Lease Property Group is pleased to exclusively offer for sale the 4,178-square- foot Chase Bank situated on 0.80 acres in San Antonio, Texas (MSA Population: 2.5 Million)— the third-largest metropolitan area in Texas, behind Dallas and Houston. Built in 2008, Chase Bank’s NNN ground lease features ±9 years of primary term remaining with 10% rent increases every 5 years throughout the initial term and in each of the four 5-year renewal options. $3,630,000 5.00% $181,500 The property is positioned with excellent access and visibility on a hard corner at the signalized price cap rate NOI intersection of Babcock Road (24,000 VPD) and Huebner Road (31,000 VPD), where it is less than 10 miles from downtown San Antonio. The site is strategically located as an outparcel to an LA-Fitness-anchored shopping center that is further occupied by Dollar Tree, Chick-fil-A, Firehouse Subs, Little Caesars Pizza, Bill Miller Bar-B-Q, Sprint, Farmers Insurance, Prompt Urgent Care, Babcock Social Pub and Camacho’s Mexican, to name a few. Chase Bank is also just 2 miles from the USAA Corporate Office—one of San Antonio’s Fortune 500 companies which employs 18,305 individuals. Chase Bank benefits from its position within one of San Antonio’s primary retail and commercial corridors with 10.7 MSF of retail, 16.3 MSF of office, 2.7 MSF of industrial and 38,668 multifamily units within a 3-mile radius. National tenants within the immediate vicinity include H-E-B Grocery, CVS, Starbucks, T-Mobile, Advance Auto Parts, Valvoline Instant Oil Change, AutoZone Auto Parts, Anytime Fitness, O’Reilly Auto Parts, Firestone Complete Auto Care, UPS, Family Dollar, Jack in the Box, Subway, Cricket Wireless and Great Clips, among others. The site is located on the perimeter of the South Texas Medical Center (STMC)—an expanse of 900 acres that consists of 75 medical-related institutions, over 45 clinics, 12 major hospitals, 1 higher education institution and an abundance of small practices. The STMC serves 38 counties, employs over 30,000 individuals and completes 5.7 million patient visits a year. Proximity to San Antonio’s world-renowned healthcare hub provides Chase Bank with a substantial built-in customer base as patients seek the STMC’s state-of-the-art healthcare services from all over South Texas and beyond. The property further benefits from infill demographics with a population of 139,200 and an average household income of $64,195 within a 3-mile radius. demographics 1 mile 3 mile 5 mile Population 17,526 139,200 354,580 AHI $61,172 $64,195 $70,903 4 property description 5801 babcock road, san antonio, tx 78240 address 4,178 sf 0.80 acres $41.5M building size land area deposits 2008 28 spaces bexar county, tx year built parking county babcock road: 10.7 MSF Retail 3 banking lanes 24,000 vpd 16.3 msf office & 1 atm lane traffic counts 2.7 msf industrial drive-thru lanes commercial base (3 miles) 5 investment highlights Investment-Grade Tenant JPMorgan Chase & Co. (NYSE: JPM; S&P: A-) is a retail banking, investment banking and global securities firm headquartered in New York City. Their retail financial services and commercial banking divisions are headquartered in Chicago, Illinois. As of December 31, 2019, JPMorgan Chase has assets of $2.7 trillion, operates in more than 100 countries, employs over 250,000 global employees and is a component of the Dow Jones Industrial Average. The company reported 2019 net income of approximately $36.4 billion and 2019 net revenues of $116.5 billion. NNN ground Lease Built in 2008, Chase Bank’s NNN ground lease features ±9 years of primary term remaining with 10% rent increases every 5 years throughout the initial term and in each of the four 5-year renewal options. record corporate earnings JPMorgan Chase’s 2019 earnings of $36.4 billion were the best of any bank in U.S. history. Excellent Access & Visibility The property is positioned with excellent access and visibility on a hard corner at the signalized intersection of Babcock Road (24,000 VPD) and Huebner Road (31,000 VPD), where it is less than 10 miles from downtown San Antonio. Strategic location The site is strategically located as an outparcel to an LA-Fitness-anchored shopping center that is further occupied by Dollar Tree, Chick-fil-A, Firehouse Subs, Little Caesars Pizza, Bill Miller Bar-B-Q, Sprint, Farmers Insurance, Prompt Urgent Care, Babcock Social Pub and Camacho’s Mexican, to name a few. Chase Bank is also just 2 miles from the USAA Corporate Office—one of San Antonio’s Fortune 500 companies which employs 18,305 individuals. Strong deposits Strong deposits in excess of $41.5 million. primary RETAIL & COMMERCIAL CORRIDOR Chase Bank benefits from its position within one of San Antonio’s primary retail and commercial corridors with 10.7 MSF of retail, 16.3 MSF of office, 2.7 MSF of industrial and 38,668 multifamily units within a 3-mile radius. National tenants within the immediate vicinity include H-E-B Grocery, CVS, Starbucks, T-Mobile, Advance Auto Parts, Valvoline Instant Oil Change, AutoZone Auto Parts, Anytime Fitness, O’Reilly Auto Parts, Firestone Complete Auto Care, UPS, Family Dollar, Jack in the Box, Subway, Cricket Wireless and Great Clips, among others. substantial built-in customer base Proximity to San Antonio’s world-renowned healthcare hub provides Chase Bank with a substantial built-in customer base as patients seek the South Texas Medical Center’s (STMC) state- of-the-art healthcare services from all over South Texas and beyond. The STMC (an expanse of 900 acres) serves 38 counties, employs over 30,000 individuals and completes 5.7 million patient visits a year. infill demographics The area benefits from dynamic demographics with a 3-mile population of 139,200 and average household income of $64,195. san antonio msa advantage The San Antonio Metropolitan Statistical Area (MSA Population: 2.5 Million) consists of eight counties and is positioned on the southwestern corner of the Texas Triangle—an urban megaregion that is connected by Interstates 10, 45 and 35. San Antonio is 78 miles south of Austin, 196 miles west of Houston and 273 miles south of Dallas. The agriculture/mining sector was responsible for 21% of the GDP structure in 2018, followed by finance/real estate at 15% and government at 14%. Though mining takes the lead, the area still benefits from economic diversity across its government, wholesale/retail, business, education/health and manufacturing sectors. San Antonio is home to the headquarters of six Fortune 500 companies: Valero Energy, Andeavor, USAA, iHeartMedia, NuStar Energy and CST Brands, Inc. H-E-B Food Stores is also headquartered in San Antonio and was #12 on Forbes’ 2019 list of “America’s Largest Private Companies.” 6 aerial 1 SIENNA RIDGE APARTMENTS 141 UNITS Z SPA ALL VACUUM BABCOCK SOCIAL PUB BABCOCK ROAD: 24,000 VPD MACHO LIBRE AUTO GLASS HONCHO’S HUEBNER ROAD: 31,000 VPD 7 aerial 2 THE RETREAT AT MEDICAL CENTER 139 UNITS AUTO GLASS THE CLIFFS OF WHITBY FIREWHEEL HONCHO’S 276 UNITS APARTMENTS SIENNA RIDGE Z SPA 366 UNITS APARTMENTS 141 UNITS MCOA OPTICAL SALON MACHO LIBRE RIOS BARBACOA ALL VACUUM BABCOCK SOCIAL PUB WHITBY ROAD BABES OLD BABCOCK ROAD: 24,000 VPD FASHIONED ATRIUM COMMONS FOOD 254 UNITS HUEBNER ROAD: 31,000 VPD STAR CENTRAL TRANSMISSIONS MIXED USE PHO SURE BABCOCK BAR SYNC AT ARDEN PARK APARTMENTS 300 UNITS BAYEH AUTO SALES FIRST CHOICE AUTO CENTER 8 HUEBNER ROAD: 31,000 VPD BABCOCK ROAD: 24,000 VPD 9 lease summary tenant: JPMorgan Chase Bank, N.A. (S&P: A-) lease commencement: December 2, 2008 lease expiration: December 31, 2028 initial lease term: 20 years lease term remaining: ±9 years lease type: NNN Ground Lease Years 11-15: $181,500 current term rent: Years 16-20: $199,650 rent escalations: 10% every 5 years remaining options: Four 5-year options option rent increases: 10% in each option Tenant will pay all Impositions as and when they become due. “Impositions” include all taxes, assessments, use and occupancy taxes, water and sewer charges, taxes: rates and rents, charges for public utilities, excises, levies, license and permit fees and other charges by any public authority, which shall or may be assessed, levied, charged, confirmed or imposed by any public authority during the Original Term and any applicable Renewal Term. Tenant Insurance: Tenant shall maintain during this Lease (i) commercial general liability insurance, including contractual liability, with limits of not less than $2,000,000 per occurrence for bodily injury, personal injury and property damage, naming Landlord and its agent as additional insureds and (ii) all-risk property dam- age insurance, including plate glass and builder’s risk insurance, covering Tenant’s personal property and all Tenant improvements on a full replacement cost basis.