Cracker Barrel Ground Lease 11019 Shadow Creek Parkway, Pearland, Texas
Total Page:16
File Type:pdf, Size:1020Kb
c CRACKER BARREL GROUND LEASE 11019 SHADOW CREEK PARKWAY, PEARLAND, TEXAS OFFERING MEMORANDUM DOWNTOWN HOUSTON 7,170 STUDENTS 46,000 STUDENTS 288 WILLIAM P. HOBBY AIRPORT 8 The information in this package 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. © 2020 Marcus Millichap. MARCUS & MILLICHAP 2 // Cracker Barrel Ground Lease Executive Summary 11019 Shadow Creek Parkway, Pearland, TX 77584 FINANCIAL SUMMARY ANNUALIZED OPERATING DATA Price $3,440,000 Lease Years Annual Rent Cap Rate Cap Rate 5.0% Current - 5/31/2025 $172,000.00 5.00% Building SF 10,062 SF 6/1/2025 - 5/31/2030 $184,899.96 5.37% Net Cash Flow 5.0% $172,000 Options Annual Rent Cap Rate Rent PSF $17.09 Option 1 $198,768.00 5.78% Year Built 2009 Option 2 $213,672.00 6.21% Lot Size 1.71 Acres Option 3 $229,704.00 6.68% LEASE SUMMARY Option 4 $246,931.80 7.18% Lease Type Absolute Triple-Net (NNN) Ground Lease Tenant Cracker Barrel Old Country Store Base Rent $172,000 Roof & Structure Tenant Responsible Net Operating Income $172,000 Lease Commencement Date June 1, 2020 Total Return 5.0% $172,000 Lease Expiration Date May 31, 2030 Lease Term Remaining 10 Years Rental Increases 7.5% Every 5 Years Renewal Options 4, 5 Year Options MARCUS & MILLICHAP 3 // Cracker Barrel Ground Lease Walgreens 35,900 CPD SHADOW CREEK PKWY 164,850 CPD HWY 288 MARCUS & MILLICHAP 4 // Cracker Barrel Ground Lease 35,900 CPD SOUTHDOWN PARK SHADOW CREEK PKWY 164,850 CPD HWY 288 MARCUS & MILLICHAP 5 // Cracker Barrel Ground Lease Property Description DEMOGRAPHICS 1-mile 3-miles 5-miles Population 2024 Projection 6,094 91,172 224,094 2019 Estimate 5,089 74,708 194,282 Growth 2019 - 2024 19.76% 22.04% 15.34% Households 2024 Projection 2,591 31,848 75,144 2019 Estimate 2,143 25,848 64,433 Growth 2019 - 2024 20.90% 23.21% 16.62% Income INVESTMENT HIGHLIGHTS 2019 Est. Average $132,815 $117,769 $96,779 » Brand New 10-Year Absolute Triple-Net (NNN) Ground Lease Household Income 2019 Est. Median » 7.5% Rental Increases Every 5 Years $104,310 $89,877 $71,382 Household Income » 194,282 Residents within a 5-Mile Radius - Houston MSA 2019 Est. Per Capita $56,007 $40,775 $32,112 » Households & Population Projected to Increase Nearly 23%+ within a 3-Mile Radius by Income 2024 - Pearland is One of the Fastest Growing Cities in Texas » Excellent Visibility Along Hwy 288 - 164,850+ Cars/Day » Situated in Retail Corridor - Kroger, Planet Fitness, Whataburger, Fuddruckers, etc. » Average Household Income Exceeds $132,000 in Immediate Area » Strong Daytime Population - 116,773 Employees in Surrounding Area » Across from HCA Healthcare Houston Pearland - a Full Service Hospital with 250 Employees » Down the Road from Dense Retail Corridor - Tenants Include Sam’s Club, Target, Walmart, H-E-B plus!, The Home Depot, and Cinemark MARCUS & MILLICHAP 6 // Cracker Barrel Ground Lease Tenant Overview Lebanon, Tennessee NASDAQ: CBRL 660+ 1969 www.crackerbarrel.com Headquarters Stock Symbol Locations Founded Website Cracker Barrel Old Country Store, Inc. (NASDAQ: CBRL), established in 1969 Cracker Barrel’s menu is based on traditional Southern cuisine, with appearance in Lebanon, Tennessee, provides a friendly home-away-from-home in its old and decor designed to resemble an old-fashioned general store. Each restaurant country stores and restaurants. Guests are cared for like family while relaxing and features a front porch lined with wooden rocking chairs, a stone fireplace, and enjoying real home-style food and shopping that’s surprisingly unique, genuinely decorative artifacts from the local area. More than 50 years ago as the Interstate fun, and reminiscent of America’s country heritage, all at a fair price. Restaurants was expanding, Cracker Barrel was founded as a way to offer people a consistent, serve up delicious, home-style country food, such as meatloaf and homemade quality place to stretch their legs, refuel, and find a good meal at a fair price. chicken n’ dumplins, as well as signature biscuits using an old family recipe. Today, there are over 660 stores in 45 states. MARCUS & MILLICHAP 7 // Cracker Barrel Ground Lease MARCUS & MILLICHAP 8 // Cracker Barrel Ground Lease Location Overview 3 Miles to Pearland Town Center 11 Miles to University of Houston 14 Miles to Downtown Houston 33 Miles to George Bush Intercontinental Airport Situated within the Houston-The Woodlands-Sugar Land Metropolitan Area, located in the city include Memorial Hermann Pearland, Pearland Medical Center, Pearland is one of the fastest growing cities in the Houston region and Texas Texas Children’s Pediatrics, and more. Tourism also plays a significant role in the as a whole. Affordable housing, outstanding schools, safe neighborhoods, and a economic impact of the city. In 2018, Pearland brought in $142 million in visitor high quality of life has led to the tremendous growth in Pearland. With millions spending and $5.4 million in local tax revenues. of square feet of retail, office, and residential construction completed in the past Greater Houston, designated as Houston-The Woodlands-Sugar Land, is the fifth- ten years, Pearland is on it sway to becoming the next major employment center most population metropolitan statistical area in the United States, encompassing in the Houston region. Its close proximity to Houston allows residents and visitors nine counties along the Gulf Coast in Southeast Texas. With an estimated 2019 alike to enjoy all the city has to offer, including professional sports, world-class population of over seven million, Greater Houston is the second-most populous cultural amenities, and recreation. in Texas after the Dallas-Fort Worth metroplex. Greater Houston serves as a major The health care industry is a driving force in Pearland’s economy, with many anchor and economic hub for the Gulf Coast. Its Port of Houston is the second medical-related companies seeking new quarters in the city. Health care facilities largest port in the country, leading the nation in international trade. MARCUS & MILLICHAP 9 // Cracker Barrel Ground Lease Cracker Barrel Ground Lease Portfolio The below properties are available individually or as a portfolio. Click to learn more. SUBJECT PROPERTY PEARLAND, TEXAS MIDLAND, TEXAS $3,440,000 | 5.0% CAP $2,724,000 | 5.25% CAP KINGWOOD, TEXAS SPRING HILL, FLORIDA $2,473,000 | 5.0% CAP $2,800,000 | 5.25% CAP MARCUS & MILLICHAP 10 // Cracker Barrel Ground Lease Information About Brokerage Services 11-2-2015 Texas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords. TYPES OF REAL ESTATE LICENSE HOLDERS: . The written agreement must state who will pay the broker and, in conspicuous bold or • A BROKER is responsible for all brokerage activities, including acts performed by sales underlined print, set forth the broker’s obligations as an intermediary. A broker who acts agents sponsored by the broker. as an intermediary: • A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker. • Must treat all parties to the transaction impartially and fairly; A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party • May, with the parties’ written consent, appoint a different license holder associated with that the broker represents): the broker to each party (owner and buyer) to communicate with, provide opinions and • Put the interests of the client above all others, including the broker’s own interests; advice to, and carry out the instructions of each party to the transaction. • Inform the client of any material information about the property or transaction received by • Must not, unless specifically authorized in writing to do so by the party, disclose: the broker; o that the owner will accept a price less than the written asking price; • Answer the client’s questions and present any offer to or counter-offer from the client; and o that the buyer/tenant will pay a price greater than the price submitted in a written offer; • Treat all parties to a real estate transaction honestly and fairly. and o any confidential information or any other information that a party specifically instructs A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION: the broker in writing not to disclose, unless required to do so by law. AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction owner’s agent through an agreement with the owner, usually in a written listing to sell or without an agreement to represent the buyer. A subagent can assist the buyer but does property management agreement. An owner’s agent must perform the broker’s minimum not represent the buyer and must place the interests of the owner first. duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD by the buyer or buyer’s agent. BE IN WRITING AND CLEARLY ESTABLISH: • The broker’s duties and responsibilities to you, and your obligations under the AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant’s agent by representation agreement.