Pizza Hut 10-Year Single Tenant Absolute NNN Lease Investment 1301 Garth Road | BAYTOWN (HOUSTON), TEXAS
Total Page：16
File Type：pdf, Size：1020Kb
Pizza Hut 10-Year Single Tenant Absolute NNN Lease Investment 1301 Garth Road | BAYTOWN (HOUSTON), TEXAS Confidential Offering Memorandum $1,350,000 Cap Rate: 5.56% NOI: $75,000 Presented by Shireen Owlia | 281.477.4300 | www.newquest.com Contents Table of Table Table of Contents Confidentiality & Disclaimer 3 Investment Summary 4 Investment Highlights 5 Property Overview 6 Financial Overview The Offering 7 Rent Schedule 7 Operating Statement 7 Lease Abstract 8 Tenant Profile 9 Location Overview Houston MSA 10 Baytown Trade Area 12 Information About Brokerage Services 15 Contact: NewQuest Properties 8827 W. Sam Houston Parkway, N. Suite 200 Houston, Texas 77040 Shireen Owlia [email protected] 281.640.7693 *The information herein has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy thereof. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. 2 Confidentiality Disclaimer The information contained in this Offering Memorandum is This Offering Memorandum is furnished to prospective purchasers for the purpose of proprietary and strictly confidential. It is intended to be reviewed determining whether to invest in the subject property offered hereby. This Offering only by the party receiving it from NewQuest Properties and Memorandum has been prepared to provide summary, unverified financial and physical & Confidentiality it should not be made available to any other person or entity information to prospective purchasers, and to establish only a preliminary level of interest Disclaimer without the written consent of NewQuest Properties. By taking in the subject property. The information contained in this Offering Memorandum has possession of and reviewing the information contained herein been obtained from sources believed to be reliable; however, NewQuest Properties has the recipient agrees to hold and treat all such information not verified, and will not verify, any of the information contained herein, nor has NewQuest in the strictest confidence. The recipient further agrees Properties conducted any investigation regarding these matters. The information that recipient will not reproduce, redistribute, photocopy or contained herein is not a substitute for a thorough due diligence investigation. All duplicate any part of the Offering Memorandum without the potential buyers must take appropriate measures to verify all of the information set prior written consent of NewQuest Properties or the owner(s) forth herein. Prospective buyers shall be responsible for their costs and expenses of of the subject property (“Owner”). If you have no interest in investigating the subject property. the subject property at this time, please return this Offering Neither Owner nor NewQuest Properties nor any of their respective subsidiaries, Memorandum to NewQuest Properties. affiliates, companies, or the officers, directors, employees, agents and representatives of any such entities, etc., make any representations or warranties, expressed or implied, as to the validity, accuracy or completeness of the information provided or to be provided, and nothing herein shall be deemed to constitute a representation, warranty or promise by any such parties as to the future performance of the subject property or any other matters set forth herein. Prospective purchasers are not to construe the contents of this Offering Memorandum or any prior or subsequent information communications from the Owners or any of their respective officers, employees or agents as legal, tax or other advice. Prior to purchasing, prospective purchasers should consult with their own legal counsel and personal and tax advisors to determine the consequences of an investment in the subject property and arrive at an independent evaluation of such investment. No commission or finder’s fee shall be payable to any party by the Owner nor any affiliate or agent thereof in connection with the sale of the subject property, unless otherwise agreed to by Owner in writing. Acquisition of properties such as these offered hereunder involves a high degree of risk and are suitable only for persons and entities of substantial financial means. Prospective purchasers are hereby advised that Owner of the subject property are soliciting offers through NewQuest Properties, which may be accepted or rejected by Owner at Owner’s sole discretion. Any solicitation of an offer for the subject property offered hereunder will be governed by this Offering Memorandum, as it may be modified or supplemented. Prospective purchasers are advised that as part of the offer process, Owner will be evaluating several factors including the experience and financial qualifications of the purchasing entity. Owner shall have no obligation to accept any offer from any prospective purchaser. Owner reserves the right to withdraw the subject property from consideration at any time prior to final execution of a purchase agreement. *The information herein has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy thereof. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. 3 Investment Summary PROPERTY OVERVIEW NewQuest Properties is pleased to exclusively present Address 1301 Garth Road, Baytown, Harris County, Texas 77520 to qualified investors the sale of a leased free-standing, Property Type Retail, Free-Standing Restaurant with Drive-Thru single tenant building operating as a Pizza Hut in Baytown, Building Size 1,218 SF Texas — located just 27 miles east of Downtown Houston Lot Size 20,870 SF 2016 (Scrape & Rebuild from Ground-Up), but Operating Since (the “Property”). The Property is comprised of 1,218 SF in Year Built 1976 improvements on 20,870 SF of land. Upon closing, the Property will be subject to a new 10-year absolute triple-net (NNN) sale- LEASE OVERVIEW Tenant AIGP, LLC d/b/a Pizza Hut leaseback, with no management or landlord responsibilities. Lease Type Absolute NNN; No Landlord Responsibilities Investment The lease will have five 4-year renewal options. Base rent Summary Lease Term 10 years commences at $75,000/yr, with a 10% rent increase for Years Starting Rent $75,000/yr 6-10 (Primary Term) and Years 11-14 (Option 1). An 8% rent 10% increase for Primary Term (Years 6 - 10) Rent Increases 10% increase for Option Term 1 (Years 11 - 15) increase continues every four years for Options 2 through 5. 8% increase for Option Terms 2 - 5 (4-Year Duration Each) The Pizza Hut is operated by and leased to AIGP, LLC d/b/a Renewal Options 5 4-Year Options Pizza Hut, one of the nation’s largest pizza chains with more Lease Commencement Close of Escrow than 16,000 restaurants in over 100 countries and territories. THE OFFERING Pizza Hut has been operating at this location since 1976, and PriceABSOLUTE NNN $1,300,00010-YEAR 18+ UNIT the building was voluntarily scraped and rebuilt in 2016. LeaseCap Ra Withte No Management 5.77%Brand New Primary Term Experienced Pizza Hut Net OpResponsibilitieserating Income (NOI) $75,000Sale Leaseback Operator Ownership Interest Fee Simple Absolute with Absolute NNN Lease THE OFFERING Price $1,350,000 Cap Rate 5.56% Net Operating Income (NOI) $75,000 Ownership Interest Fee Simple Absolute Attractive Above Average No with Absolute NNN RENT ESCALATIONS SALES STATE INCOME TAX LOCATION OVERVIEW Located in Southeast Texas near the Gulf of Mexico, Houston is a leading destination for investors due to its diverse economy, stable job market, and dynamic growth. These qualities are driven by superior infrastructure, reasonable cost of living, and vast diversity in the industries that conduct business within the city. Houston is the most populous city in Texas and the fourth most populous city in the United States. It is internationally known as the “Energy Capital of the World” and is home to both the world’s largest medical center and NASA Johnson Space Center. The Property is located in Baytown, a flourishing and high growth suburb of Houston, Texas. The site benefits from great visibility, widespread growth, and excellent daytime population. The Property is near in proximity to ExxonMobil (over 3,400 employees), Lee College (over 6,500 students), Palais Royal, Dollar General, Dollar Tree, and Food Town. The adjacent Whataburger and McDonald’s have double-lane drive-thru service. *The information herein has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy thereof. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. 4 Investment Highlights BRAND NEW BUILDING, YET LEGACY PROPERTY Pizza Hut Has Been Operating at this location Since 1976; the building was voluntarily 105 Conroe scraped and rebuilt in 2016. 336 105 242 The Woodlands HURRICANE HARVEY PROOF 249 45 146 59 Investment Property endured 35 inches of rain and opened for business within days of the hurricane. Spring Highlights Humble 290 Cypress 1960 90 8 BRAND NEW 10-YEAR ABSOLUTE NNN SALE-LEASEBACK WITH NO 99 LANDLORD OBLIGATIONS 10 SITE Property offers investors a long-term cash flow from a passive investment with no 10 6 610 East End Katy Houston Baytown landlord responsibility throughout the base lease term or option periods. 610 Trinity Bay 146 90 8 Sugar Land ATTRACTIVE RENT ESCALATIONS 90 59 Rosenberg Pearland Lease features 10% rent escalations four two 5-year periods, then 8% rent escalations for Galveston Bay 6 288 the remaining four 4-year periods, offering investors a hedge against inflation. 45 Texas City Gulf of Mexico Galveston EXPERIENCED OPERATOR WITH PROVEN TRACK RECORD AIGP, LLC owns 19 Pizza Hut locations and is headed by Anand “Andy” Patel, a 30-year veteran in the franchise restaurant industry. SITE INCOME TAX-FREE STATE The State of Texas does not have individual State Income Tax.