7522 S. Padre Island Drive, Corpus Christi, Tx 78412

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7522 S. Padre Island Drive, Corpus Christi, Tx 78412 7522 S. PADRE ISLAND DRIVE, CORPUS CHRISTI, TX 78412 Exclusively Offered By: ED COLSON JR., CCIM JOE AYCOCK 619.546.0121 210.349.7711 [email protected] [email protected] CA Lic #01382996 | TX Lic #635820 InvestCoreCommercial.com OFFERING STATEMENT / DISCLAIMER InvestCore Commercial presents this Offering which business or affairs of the Property or the Owner since contents to any other entity (except to outside advisors has been prepared by InvestCore Commercial for use the date of preparation of the package. Analysis and retained by you, if necessary, for your determination of by a limited number of parties and does not purport verification of the information contained in this package whether or not to make a proposal and from whom you to provide a necessarily complete summary of the is solely the responsibility of the prospective purchaser. have obtained an agreement of confidentiality) without Property or any of the documents related thereto, nor Additional information and an opportunity to inspect the the prior written authorization of Owner or InvestCore does it purport to be all-inclusive or to contain all of Property will be made available upon written request to Commercial, (iv) not use the package or any of the the information which prospective investors may need interested and qualified prospective investors. contents in any fashion or manner detrimental to the or desire. All projections have been developed by interest of Owner or InvestCore Commercial, and (v) to InvestCore Commercial, the Owner, and designated Owner and InvestCore Commercial each expressly return it to InvestCore Commercial immediately upon sources and are based upon assumptions relating to reserve the right, at their sole discretion, to reject any request of InvestCore Commercial or Owner. the general economy, competition, and other factors and all expressions of interest or offers regarding the beyond the control of the Owner and, therefore, are Property and/or terminate discussions with any entity If you have no further interest in the Property, please subject to variation. No representation is made by at any time with or without notice. Owner shall have no return this Investment Offering forthwith. InvestCore Commercial or Owner as to the accuracy or legal commitment or obligation to any entity reviewing completeness of the information contained herein, and this Offering or making an offer to purchase the Property nothing contained herein is, or shall be relied on as, a unless and until a written agreement for the purchase promise or representation as to the future performance of the Property has been fully executed, delivered, of the Property. Although the information contained and approved by Owner and its legal counsel, and any herein is believed to be correct, Owner and its employees conditions to Owner’s obligations thereunder have disclaim any responsibility for inaccuracies and expect been satisfied or waived. InvestCore Commercial is not prospective purchasers to exercise independent due authorized to make any representations or agreements diligence in verifying all such information. Further, on behalf of Owner. InvestCore Commercial, Owner, and its employees This Offering and the contents, except such information disclaim any and all liability for representations and which is a matter of public record or is provided in sources warranties, expressed and implied, contained in, or for available to the public (such contents as so limited herein omission from, this Investment Offering or any other are called the “Contents”), are of a confidential nature. InvestCore Commercial, Inc. 3910 W. Point Loma Blvd, Suite B written or oral communication transmitted or made By accepting the package, you agree (i) to hold and San Diego, CA 92110 available to the recipient. This Offering does not constitute treat it in the strictest confidence, (ii) not to photocopy or a representation that there has been no change in the duplicate it, (iii) not to disclose the package or any of the 2 | La-Z-Boy - Corpus Christi, TX TABLE OF CONTENTS INVESTMENT SUMMARY 4 Executive Summary Investment Highlights PROPERTY DESCRIPTION 8 Street Map Aerials Site Plan AREA OVERVIEW 13 About La-Z-Boy About Corpus Christi Demographics 3 | La-Z-Boy - Corpus Christi, TX INVESTMENT SUMMARY Executive Summary Naval Air Station Corpus Christi Income & Expenses Investment Highlights SUBJECT S. PADRE ISLAND DRIVE - 63,000 CPD PROPERTY 4 | La-Z-Boy - Corpus Christi, TX INVESTMENT SUMMARY EXECUTIVE SUMMARY Tenant: SPID Store #6, LLC, dba La-Z-Boy Personal Guaranty: Yes, the new lease is to be personally guaranteed. Address: 7522 S Padre Island Drive, Corpus Christi, TX 78412 ~16,200 SF (15,000 SF of showroom; 1,200 SF of Building Size: warehouse) Land Size: ~63,503 SF Year Built: 2014 Rent Commencement: Close of Escrow Lease Term: 15 Years Options: Four (4) 5-year options Lease Type: Fee Simple NNN Land & Building Landlord Responsibilities: None, absolute NNN lease Rent Increases: 10% increase every 5 years Rent Schedule: Term Years Monthly Rent Annual Rent % Increase Primary 1-5 $26,250.00 $315,000 Primary 6-10 $28,875.00 $346,500 10% Primary 11-15 $31,762.50 $381,150 10% Option 1 16-20 $34,938.75 $419,265 10% Option 2 21-25 $38,432.58 $461,191 10% Option 3 26-30 $42,275.83 $507,310 10% Option 4 31-35 $46,503.42 $558,041 10% OFFERING TERMS Price: $4,500,000 NOI: $315,000 Cap Rate: 7.0 % 5 | La-Z-Boy - Corpus Christi, TX INVESTMENT SUMMARY INVESTMENT HIGHLIGHTS Brand New Long-Term NNN Lease • The owner/tenant will sign a brand new, 15-year absolute NNN lease upon the close of escrow • The new long-term lease will provide an investor with a steady fixed income stream with favorable increases every 5 years Zero Landlord Responsibilities – Completely Passive Investment • A new owner will reap the benefits of the new absolute NNN lease with zero landlord responsibilities • Ideal passive investment for any hands-off owner Major Thoroughfare with High Traffic Counts • 63,000 cars per day along South Padre Island Drive High Store Sales – Increasing Year Over Year • The subject property has enjoyed positive year over year sales growth over the last 3 years • 19% sales increase from 2017 to 2018 • Conservatively projecting $3.05m in sales for 2019 Seasoned La Z Boy Franchisee – 20 Years In Business • The President of the company purchased the La-Z-Boy franchise in 1999, successfully operating and growing the company over the last 20 years • The franchisee currently operates 5 La-Z-Boy locations (San Antonio – 3, Corpus Christi – 1, McAllen – 1) 6 | La-Z-Boy - Corpus Christi, TX INVESTMENT SUMMARY INVESTMENT HIGHLIGHTS Recently Constructed State of the Art Building • The subject property was completed and open for business in 2014 • Ownership developed the subject property from the ground up, and invested a significant amount in tenant improvements showing a long-term commitment to this location Well Located Within Retail Trade Area • Ideally located along South Padre Island Drive, the major thoroughfare through Corpus Christi • Large presence of national retailers in the immediate trade are including Walgreens, McDonalds, Century 16 IMAX theaters, Applebee’s, numerous hotel and car dealerships and the Target HEB anchored shopping center just NW of the subject property Built In Customer Base – Naval Air Station Corpus Christi & Texas A&M University • La-Z-Boy benefits from a large customer base coming from the nearby NAS Corpus Christi base as well as the satellite campus for Texas A&M University • There are multiple apartment complexes within just a few blocks of the subject property housing a number of students who attend the university 7 | La-Z-Boy - Corpus Christi, TX PROPERTY DESCRIPTION Street Map Aerials Site Plan SUBJECT PROPERTY S. ISLAND PADRE DRIVE - 63,000 8 | La-Z-Boy - Corpus Christi, TX PROPERTY DESCRIPTION STREET MAP 9 | La-Z-Boy - Corpus Christi, TX PROPERTY DESCRIPTION AERIAL 10 | La-Z-Boy - Corpus Christi, TX PROPERTY DESCRIPTION TEXAS A&M UNIVERSITY CORPUS CHRISTI AND NEARBY APARTMENTS Momentum Village Seaside Villa Condominiums The Shores Apartments Oso Bay Apartments S. PADRE ISLAND DRIVE - 63,000 CPD Camden South Bay Apartments Baypoint Apartments Campus SUBJECT Quarters PROPERTY 11 | La-Z-Boy - Corpus Christi, TX PROPERTY DESCRIPTION SITE PLAN 12 | La-Z-Boy - Corpus Christi, TX AREA OVERVIEW About La-Z-Boy About Corpus Christi Demographics 13 | La-Z-Boy - Corpus Christi, TX AREA OVERVIEW ABOUT LA-Z-BOY www.la-z-boy.com SPID Store #6, LLC, dba La-Z-Boy • The new lease will be personally guaranteed by Robert W. Broadnax, the Tenant and owner of the La-Z-Boy franchise • 20+ years’ experience working in the industry • After graduating college, went directly into the business and was the youngest La-Z-Boy franchisee in the Country • Bought their La-Z-Boy franchise in 1999 Indonesia, Italy, Japan, Mexico, New Zealand, Turkey and furniture retailers and proprietary stores. This includes • Currently operates 5 locations (San Antonio – 3; South Africa. La-Z-Boy holds US and international patents recliners and motion furniture, sofas, lift chairs, loveseats, Corpus Christi – 1; McAllen – 1) on more than 200 different styles and mechanisms. chairs, ottomans and sleeper sofas. The Casegoods • Since 2016, year over year increases in Total Reve- Group primarily sells manufactured or imported wood nues for the company La-Z-Boy Incorporated is divided into three reportable furniture to furniture retailers, including tables, chairs, en- • 14% increase in Total Revenues from 2017 to 2018 operating segments: the Upholstery Group, the Case- tertainment centers, headboards, dressers, accent pieces goods Group and the Retail Group. The Upholstery Group and some coordinated upholstered furniture. The Retail La-Z-Boy Inc. is an American furniture manufacturer primarily manufactures and sells upholstered furniture to Group consists of 70 company-owned stores in the US.
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