Spring, Texas
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3843 FM 2920 | Spring, Texas Representative Photo offering memorandum ED BRESLIN MANAGING DIRECTOR Broker License: 0 1 3 3 8 4 1 4 Office 310.774.3790 | Mobile 310.254.4177 | [email protected] PAUL TRUPIA III MANAGING DIRECTOR Office 646.791.0818 | Mobile 914.774.5218 | [email protected] In Conjunction With Texas Licensed Broker: Paul Farris New York | Florida | California CONFIDENTIAL DISCLAIMER This Confidential Memorandum has been prepared by Kentwood Capital Advisors (“KCA”) and is being furnished to you solely for the purpose of your review of the commercial property located at 3843 FM 2920 | Spring, Texas (the “Property”). The material contained in this Offering Memorandum shall be used for the purposes of evaluating the Property for acquisition and shall not be used for any purpose or made available to any other person without the express written consent of Kentwood Capital Advisors (“Broker”). By accepting the Confidential Memorandum, you acknowledge and agree that: (1) all of the information contained herein and any other information you will be receiving in connection with this transaction, whether oral, written or in any other form (col- lectively, the “Materials”), is confidential; (2) you will not reproduce the Confidential Memorandum in whole or in part; (3) if you do not wish to pursue this matter, you will return this Confidential Memorandum to KCA as soon as practicable together with all other materials relating to the Property which you may have received from KCA; and (4) any proposed actions by you which are inconsistent in any manner with the foregoing agreements will require the prior written consent of KCA. This Confidential Memorandum has been prepared by KCA, based upon certain information pertaining to the Property and any information obtained from KCA to assist interested parties in making their own evaluation of the Property is offered on a no representation or warranty provision other than customary warranties of title and is sold on an “as-is, where-is” basis and with all faults. The material and transaction does not purport to be all inclusive. This Confidential Memorandum contains descriptive materials, financial information and other data compiled for the convenience of parties interested in the Property. The Materi- als are being delivered by KCA to prospective investors with the understanding that it is not all inclusive and that it is qualified in its entirety by independent investigation by prospective investors of those matters which they deem appropriate in evaluat- ing this offering without reliance upon KCA, the Broker or any of their respective affiliates or any of the information set out in the Materials. Neither KCA, the Broker, nor any of their respective affiliates have independently verified any of the information contained herein or in any of the Materials, and no representations or warranties as to the accuracy or completeness thereof or of any other kind whatsoever are made or intended and none should be inferred. KCA, for itself and its affiliates of the Property, expressly disclaim any and all liability for statements or representations, express or implied, contained herein or for omissions from the Materials or for any other written, oral or other format of communication transmitted to a prospective investor in the course of its evaluation of the proposed transaction. All summaries and discussions of documentation and/or financial information contained herein are qualified in their entirety by reference to the actual doc- uments and/or financial statements, which upon request may be made available. The terms and conditions described herein are subject to change without notice. This Confidential Memorandum does not constitute an offer to accept any investment proposal but is merely a solicitation of interest with respect to the investment described herein. The Confidential Memorandum does not constitute an offer of secu- rity. The investment described herein may be financed or withdrawn from the market, without prior notice. By accepting this Confidential Memorandum you agree to release KCA and hold it harmless from any kind of claim, expense, or liability arising out of your discovery or purchase of the Property. KCA reserves the right to request the return of the Materials at any time. Ownership of the Property reserves the right to negotiate with one or more prospective investors at any time. EXECUTIVE PRICE CAP NOI OVERVIEW $3,908,000 4.35% $170,000 The Investment ༴ Corporately Owned and Operated by 7-Eleven ༴ Absolute Triple Net Lease with Zero Landlord Responsibilities ༴ Brand new remodel and canopy, completed in 2020 ༴ Massive oversized lot with full service car wash ༴ Fee Simple Ownership ༴ 10% Rental Escalations, every 5 Years Actual Site ༴ Four, 5 Year Tenant Renewal Options ༴ Massive gas stop with 20 pumps ༴ Exceedingly low rent for fee simple C-Store ༴ Potentially eligible for Bonus or Accelerated Depreciation The Location ༴ Heavily trafficked area, located at the southeast corner of FM 2920, at its signalized intersection with Falvel Rd with a combined 50,000 vehicles per day passing the site daily ༴ High Visibility – the property is positioned directly on Falvel Road which connects the surrounding neighborhoods and gives access to the perfect demographic with 3 schools ranging from Elementary, Middle and High School with a combined enrollment of over 6,000 students +/- ༴ FM 2920 is a commercial corridor in the area that features a HEB Supermarket, and has access to David Wayne Hooks Airport, then leads to downtown Spring, TX. ༴ Solid affluent suburban area with an average household income above $70,000 within One Miles ༴ Significant surrounding population with almost 13,000 people in one mile radius and over 222,645 people in a five mile radius with continued forecasted growth by 2025 ༴ Located approximately 25-miles northwest of downtown Houston, TX. ༴ The traffic volumes, growth, population density, and accessibility of the immediate trade area have attracted numerous nationally known retail brands to the trade area. Actual Site 7 ELEVEN | SPRING, TX | PAGE 3 offering memorandum The Tenant & Guarantor ༴ The brand name 7-Eleven is now part of an international chain of convenience stores and is the largest chain store operator with approximately 65,000+ locations operating around the world, surpassing the previous record-holder McDonald’s Corporation in 2007. ༴ Its stores are located in sixteen countries, with its largest markets being Japan, the United States, Canada, the Philippines, Hong Kong, Taiwan, Malaysia and Thailand. 7-Eleven, Inc. as a former U.S.-originating company, is a subsidiary of Seven-Eleven Japan Co., Ltd, which in turn is owned by Seven & I Holdings Co. of Japan. ༴ The US chain has its headquarters in Irving, Texas .The company operates, franchises and licenses more than 9,800+ stores in the U.S. and Canada. Of the more than 9,800 stores the company operates and franchises in the United States, approximately 8,000 are franchised. ༴ Outside of the U.S. and Canada, there are more than 55,300 7-Eleven and other convenience stores in Japan, Taiwan, Thailand, South Korea, China, Malaysia, Mexico, Singapore, Australia, Philippines, Indonesia, Norway, Sweden & Denmark. ༴ 7-Eleven also is one of the nation’s largest independent gasoline retailers. Its company’s name was changed from The Southland Corporation to 7-Eleven, Inc. after approval by shareholders on April 28, 1999. Actual Site 7 ELEVEN | SPRING, TX | PAGE 4 offering memorandum SITE PLAN 2920 50,000 VPD EXXON Sign CAR WASH FALVEL RD FALVEL 14,000 VPD 7 ELEVEN | SPRING, TX | PAGE 5 offering memorandum DOWNTOWN UPTOWN LEASE ABSTRACT HOUSTON HOUSTON Tenant Name 7 Eleven KLEIN COLLINS Property Address 3843 FM 2920 HIGH SCHOOL City, State Spring, Texas MSA Houston Est. Building Size 3,435 SF Lot Size 1.61 Ac Type of Ownership Fee Simple KREINHOP ELEMENTARY SCHOOL SCHINDEWORLF LEASE OVERVIEW INTERMEDIATE SCHOOL Tenant Name 7 Eleven SUBJECT Guarantee Corporate 14,000 VPD PROPERTY Store Remodel 2016 In Place NOI $170,000 Rent Commencement 12/1/2019 Original Lease Term 15.0 Years Lease Expiration 11/30/2034 Lease Term Remaining 14.6 Years 2920 Lease Type Absolute Triple Net (NNN) 2920 50,000 VPD Roof & Structure Tenant Responsible Rental Increases 10% Every 5 Years Options to Renew Four, 5 Year Options RENT SCHEDULE FALVEL RD ANNUAL BASE RENT Year 1 - 5 $170,000 Year 6 - 10 $187,000 Year 11 - 15 $205,700 Year 16 - 20 (Option 1) $226,270 * Year 21 - 25 (Option 2) $248,897 Year 26 - 30 (Option 3) $273,786 Year 31 - 35 (Option 4) $301,165 *Monthly rent for the first 6 months of Option 1 (Year 16 shall be abated 7 ELEVEN | SPRING, TX | PAGE 6 offering memorandum S OLD RAND RD SUBJECT PROPERTY 2920 50,000 VPD 14,000 VPD 2920 FALVEL RD 2920 DRONE AERIAL 7 ELEVEN | SPRING, TX | PAGE 7 offering memorandum S OLD RAND RD 2920 SUBJECT 50,000 VPD PROPERTY 2920 FALVEL RD 14,000 VPD DRONE AERIAL 7 ELEVEN | SPRING, TX | PAGE 8 offering memorandum GRAND PARKWAY MARKETPLACE 99 GRAND PKWY (TOLL ROAD) 99 99 45 GRAND PARKWAY MARKETPLACE S OLD RAND RD SPRING STUEBNER RD SUBJECT FALVEL RD FALVEL PROPERTY 2920 PROPOSED ® MULTIFAMILY DEVELOPMENT 2920 45 LOUETTA CENTRAL SCHINDEWORLF KREINHOP KUYKENDAHL RD INTERMEDIATE SCHOOL ELEMENTARY SCHOOL NORTH FWY KLEIN COLLINS HIGH SCHOOL SPRING CYPRESS RD Americas Drive•In SM SPRING HIGH CYPRESSWOOD COURT SCHOOL 45 MARKET AERIAL 7 ELEVEN | SPRING, TX | PAGE 9 offering memorandum S OLD RAND RD 14,000 VPD 2920 2920 50,000 VPD 2920 KREINHOP RD SUBJECT PROPERTY NO RM FALVEL RD FALVEL A N D Y F O R E S T D KAHN RD R SCHINDEWORLF INTERMEDIATE SCHOOL MEADOW HILL DR CLOSEUP AERIAL 7 ELEVEN | SPRING, TX | PAGE 10 offering memorandum LOCATION OVERVIEW 7-Eleven is located at the southeast corner of FM 2920 (39,000 VPD), at its signalized intersection with Falvel Rd.