Murphy Express Ground Lease Fee Simple Sugar Land (Houston)
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MURPHY EXPRESS GROUND LEASE FEE SIMPLE SUGAR LAND (HOUSTON) OFFERING MEMORANDUM NON-ENDORSEMENT & DISCLAIMER NOTICE CONFIDENTIALITY & DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Bro- chure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the infor- mation provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. NON-ENDORSEMENT NOTICE Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. EXCLUSIVELY LISTED BY SONNY MOLLOY Senior Vice President Investments [email protected] Direct: (678) 808-2763 JARED KAYE Senior Associate [email protected] Office: (678) 808-2700 TABLE OF CONTENTS EXECUTIVE SUMMARY Offering Highlights Investment Overview 01 Summary of Terms PROPERTY DETAILS Site Plan Regional Map 02 Local Maps Retail Market Aerial FINANCIAL ANALYSIS Financial Summary Rent Roll 03 Lease Abstracts Tenant Summaries LOCATION OVERVIEW Demographics Houston Fortune 500 & 1000 Firms 04 246,369 204,417 2017 TOTAL POPULATION 2017 DAYTIME POPULATION 5-MILE RADIUS 5-MILE RADIUS 01-EXECUTIVE SUMMARY OFFERING HIGHLIGHTS MURPHY EXPRESS | GROUND LEASE (FEE SIMPLE) Alt. Hwy. 90 & University Blvd., Sugar Land, TX 77478 Price $3,000,000 Cap Rate 5.00% Year Built 2018 Price Per Sq. Ft. $2,577.32 SF Lot Size 1.24 Acres Lease Type NNN Ground Lease Net Operating Income - Year 1 $150,000 MAJOR HOUSTON EMPLOYERS City of Houston United Airlines 7 Chevron Corporation Shell Oil Co. EXECUTIVE SUMMARY 7 Deliotte LLP Texas Children’s Hospital Kinder Morgan Inc. UT-Health Science Medical Center Walmart Flour Corp. Baylor College of Medicine JPMorgan Chase EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS Fundamental Location and Lease Structure ■ 20 Year Fee Simple Ground Lease ■ 20 Year Corporate Guaranty from Parent Company, Murphy Oil USA, Inc. ■ 8% Rent Escalations Every Five (5) Years Beginning in Year 6 and In Each Option ■ Absolute NNN Lease with Zero LL Responsibilities ■ Four (4), 5-Year Options ■ New 2018 Construction with 8 Fuel Bays ■ Opening for Business in June 2018 ■ Strategically Located 0.25 Miles from the Highway 6 Exit Ramp ■ Positioned on the Southwest Corner of a Signalized Intersection (Hwy 90 Alt. & University Blvd.) ■ Situated on a ±1.24 Acre Pad ■ Two (2) Points of Ingress and Egress ■ Robust Traffic Counts of ±39,492 on Hwy 90 Alt. & ±34,007 on University Blvd. Robust Regional Trade Area ■ Surrounded by Multiple Large National Retailers: Sam’s Club, Costco, Walmart, Target, Whole Foods ■ ±3 Miles from First Colony Mall (±1.1 Million SF of Retail Space) ■ ±3 Miles from CHI St. Luke’s Health – Sugar Land Hospital, a Full-Service 100-Bed Hospital with 462 Medical Personnel ■ ±2.7 Miles from Houston Methodist Sugar Land Hospital (Voted Best Metro-Area Hospital by U.S. News & World Report since 2013) ■ ±1.5 Miles from Sugar Land Regional Airport ■ ±1.6 Miles to Constellation Field, Home of the Sugar Land Skeeters ■ ±0.6 Miles to the Fort Bend Children’s Discovery Center ■ ±1.8 Miles to the Houston Museum of Natural Science at Sugar Land LOCATION HIGHLIGHTS ◆ Population of ±79,564 in 3-Mile Radius & ±246,369 Population in 5-Mile Radius ◆ Houston is the Largest City in Texas & 4th Largest City in the U.S. with a ±2.303 Million Population ◆ Houston is the seat of Harris County, the third-most populous county in the nation ◆ Houston MSA is Fifth-Most Populous in U.S. (6.22 Million) ◆ ±21 Miles from Houston Central Business District ◆ Houston has more than 500 cultural, visual and performing arts organizations, 90 of which are devoted to multicultural and minority arts and is one of five U.S. cities that offer year-round resident companies in all major performing arts ◆ Houston boasts more than 40 colleges, university and institutions, including the University of Houston, Rice University, and Texas Southern University ◆ Home to more than 5,000 energy related firms, Houston is considered by many as the Energy Capital of the world ◆ Houston is home to seven professional major league teams: Houston Astros, Houston Texans, Houston Rockets, Houston Dynamo, Houston Dash, Scrap Yard Dawgs, and Houston SaberCats 9 ◆ Houston’s economy has a broad industrial base in the energy, aeronautics, and technology industries with 25 Fortune 500 companies headquartered in the city (only New York has more) ±21 MILES $124,183 EXECUTIVE SUMMARY TO HOUSTON CENTRAL AVERAGE HOUSEHOLD INCOME BUSINESS DISTRICT 78,730 TOTAL HOUSEHOLDS IN 5-MILE RADIUS 02-PROPERTY DETAILS AERIALS Sugar Land Regional Airport University Blvd HWY 6 Hwy 90 Alternate 50-Bed Inpatient Rehab Hospital ± 39,492 Daily 12 EXECUTIVE SUMMARY 12 ± 39,666 Daily PROPERTY DETAILS PROPERTY AERIALS Constellation Field Stephen F Austin High School 7,500-Seat Stadium Students: ± 2,315 5-Mile Radius Sugar Land Middle School Garcia Middle School Residents: ±246,369 Students: ± 1,222 Students: ± 1,276 Average HH Income: $124,183 Lakeview Elementary School Students: ± 514 Sugar Land Regional Airport 69 I- Houston Museum of Natural Science at Sugar Hwy 90 Alternate Land Cornerstone Elementary School HWY 6 Students: ± 1,016 13 13 ±1.1 Million SF of Retail Space PROPERTY DETAILS PROPERTY LOCAL MAP 14 EXECUTIVE SUMMARY 14 FIRST COLONY MALL RICE UNIVERSITY DOWNTOWN HOUSTON GEORGE BUSH 1 MILE 19 MILES 23 MILES INTL. AIRPORT 41 MILES EXECUTIVE SUMMARY SITE PLAN ■ Positioned on the Southwest Corner of a Signalized Intersection (Hwy 90 Alt. & University Blvd.) ■ Situated on a ±1.24 Acre Pad 15 EXECUTIVE SUMMARY UNIVERSITY BLVD. ±34,007 VPD Representative PhotoRepresentative Photo 16 EXECUTIVE SUMMARY 16 EXECUTIVE SUMMARY $124,183 AHHI 5-MILE RADIUS 03-LOCATION OVERVIEW LOCATION OVERVIEW Houston Houston was founded on August 30, 1836, near the banks of Buffalo Bayou (now known as Allen’s Landing) and incorporated as a city on June 5, 1837. The city was named after former General Sam Houston, who was president of the Republic of Texas and had commanded and won at the Battle of San Jacinto 25 miles east of where the city was established. The burgeoning port and railroad industry, combined with oil discovery in 1901 and Houston’s replacement of Galveston as Texas’s primary port following a devastating hurricane, has induced continual surges in the city’s population. In the mid- 20th century, Houston became the home of the Texas Medical Center—the world’s largest concentration of healthcare and research institutions—and NASA’s Johnson Space Center, where the Mission Control Center is located. Houston’s economy has a broad industrial base in energy, manufacturing, aeronautics, and transportation. Leading in health care sectors and building oilfield equipment,Houston has the second most Fortune 500 headquarters of any U.S. municipality within its city limits (after New York City). The Port of Houston ranks first in the United States in international waterborne tonnage handled and second in total cargo tonnage handled. Nicknamed the “Space City”, Houston is a global city, with strengths in business, 19 international trade, entertainment, culture, media, fashion, science, sports, LOCATION OVERVIEW LOCATION technology, education, medicine, and research. The city has a population from various ethnic and religious backgrounds and a large and growing international community. Houston is the most diverse city in Texas and has been described as the most racially and ethnically diverse major metropolis in the U.S. It is home to many cultural institutions and exhibits, which attract more than 7 million