League City, Texas | Single-Tenant Nnn Opportunity
Total Page:16
File Type:pdf, Size:1020Kb
LEAGUE CITY, TEXAS | SINGLE-TENANT NNN OPPORTUNITY REPRESENTATIVE IMAGE RYAN WEST WILLIAM DUNCAN Senior Managing Director Real Estate Analyst (713) 852-3535 (713) 852-3435 [email protected] [email protected] HFFLP.COM PROPERTY HIGHLIGHTS PROPERTY OVERVIEW • Brand New NNN Asset with Contractual Rental Increases and Zero Landlord LOCATION SEQ of League City Pkwy & South Shore Blvd Responsibilities League City, Texas 77573 • Dual Grocery-Anchored by a 98,000 Square Foot HEB and a 77,000 Square Foot NOI $75,000 Kroger Located Adjacent to the East and Directly Across the Street to the North | Two of Texas’ LAND AREA ±40,000 SF (±0.9 Acres) Most Dominate Grocers BUILDING AREA ±1,395 SF • Proven Retailer with More Than 60 Years of Business and Over 3,500 Locations in 44 States YEAR BUILT Under Construction (Estimated 3Q 2016) • Experienced Franchisee With Over 40 Locations Across Texas and Estimated Revenue of $50 Million PARKING TBD – Currently Under Construction (est. 5.00/1,000 SF) • Outstanding Demographics | Nearly 121,000 Residents are Located within a Five-Mile Radius TYPE OF OWNERSHIP Fee Simple with Average Income of over $119,000 Within a 1-Mile Radius. TENANT SDI 96 League City, LLC • Surrounded by Master Planned Communities Including Tuscan Lakes with More Than 1,800 Single Family Homes and South Shore Harbour with Over 1,100 Single Family Homes LEASE TYPE Absolute NNN ROOF AND STRUCTURE Tenant Responsible • Exceptional Population Growth | 44.8% Growth since 2000 | An Additional 9.51% Projected by 2021 RENT COMMENCEMENT Estimated August 2016 • Significant Capital Investment by Tenant | 100% Ground-Up Development Costs Paid By LEASE EXPIRATION DATE Estimated August 2026 Tenant, Solidifying Their Occupancy and Displaying Commitment to the Property TERM REMAINING ON LEASE 10 Years REPRESENTATIVE IMAGE OPTIONS Four (4), Five (5) Year Options RENT ESCALATIONS YEARS ANNUAL RENT 6-10 $82,500 RENEWAL OPTIONS YEARS ANNUAL RENT 11-15 $90,750 16-20 $99,825 21-25 $109,806 26-30 $120,786 2 RETAILER PROFILE TENANT PROFILE SDI 96 LEAGUE CITY, LLC COMPANY: SDI 96 League City, LLC PUBLIC/PRIVATE: Public OWNER/OPERATOR: Garza Management Corporation 2015 REVENUE: 647.7 MM PUBLIC/PRIVATE: Private # OF STORES: 3,500 WEBSITE: www.sonicdrivein.com SONIC, America's Drive-In is the nation's largest drive-in restaurant chain serving more than 3 The tenant, SDI 96 League City, LLC., is owned and operated by Garza Management Corporation, million customers every day. It is 89% franchised and has a unique franchise agreement with a a business management company based in Stafford, Texas. Garza Management Corporation is a royalty rate that rises and falls with changes in same-store sales growth, which helps increase the privately held company founded in 2011 by president and owner Joel Garza, with a 2015 annual operating leverage in the model. Sonic has roughly 3,500 stores in 44 states in the United States. It revenue estimated at $50 million. The company manages over 40 properties in Texas, including also reported a 2015 revenue of $647.7 Million and has a market capitalization of $1.198 Billion. Over numerous Sonic Drive-In’s. For Parkway Commons Sonic, the company will be investing a the past 60 years, SONIC has differentiated itself with its drive-in stalls, diverse menu, and more significant amount of capital to fund 100% of development costs of the project, solidifying their than 1.3 million drink combinations and friendly service by iconic skating carhops. It is a publicly occupancy and displaying their long-term commitment to the Property. traded company over the NASDAQ with ticker symbol: (SONC). REPRESENTATIVE IMAGE 3 PROPERTY OVERVIEW SITE PLAN South Shore Boulevard | 8,680 VPD 77,000 SF League City Parkway (SH 9 8) | 22,040 VPD Strip Retail To-be-Built (Not A Part) ±0.9 Acres 98,000 SF eacrest Boulevard S REPRESENTATIVE IMAGE 4 105 6 CLEVELAND WASHINGTON 105 CONROE 105 770 336 SARATOGA 45 69 MAGNOLIA 242 321 146 PINEHURST THE Trinity River National 105 WOODLANDS NEW CANEY Wildlife Refuge 290 770 SOUR LAKE TOMBALL PORTER HEMPSTEAD 326 6 SPRING WALLER LIBERTY DAYTON HUFFMAN 90 159 249 HUMBLE ATASCOCITA George Bush CYPRESS International BELLVILLE Airport LOCATION AERIAL 8 59 99 ALDINE CROBY 61 CLEAR CREEK INTERMEDIATE SCHOOL JERSEY VILLAGE 6 45 290 69 90 MONT BELVIEU HIGHLANDS 10 65 SEALY BROOKSHIRE KATY 10 10 HUNTERS CHANNELVIEW 330 George Bush JACINTO CITY Park CREEK VILLAGE HOUSTON 99 CLEAR CREEK HIGH SCHOOL FM 518 CINCO RANCH GALENA PARK BAYTOWN 59 BELLAIRE 225 DEER PARK 2,400 Students MISSION BEND 610 PASADENA SOUTH SHORE VILLAGE 99 MEADOWS LA PORTE PLACE 90 146 PECAN GROVE William P. Hobby 8 $220k - $330k 36 Trinity Bay SUGAR LAND Airport Anahuac National Louisiana Avenue Wildlife Refuge RICHMOND 69 PEARLAND SEABROOK 90 ROSENBERG GREATWOOD FRESNO WEBSTER KEMAH MEADOW BEND 4 EAST BERNARD FRIENDSWOOD 10 LEAGUE CITY BACLIFF East Bay 6 146 BOLIVAR $120k - $200k 60 SAN LEON GOAT ISLAND PENINSULA MANVEL DICKINSON Galveston Bay AVENUE AT ALVIN 3 NEEDVILLE 197 SOUTH SHORE 288 SANTA FE TEXAS CITY SOUTH SHORE HARBOR ROSHARON HITCHCOCK 36 APARTMENTS 35 1,101 Homes WHARTON GALVESTON 59 $170k - $400k 60 MAR BELLA 547 Homes CLEAR FALLS $200k - $450k LEAGUE CITY GOFORTH HIGH SCHOOL INTERMEDIATE ELEMENTARY AVENUE AT BAYRIDGE TUSCAN LAKES INTERMEDIATE BAYRIDGE SCHOOL TUSCAN LAKES APARTMENTS $275k - $900k AVENUE AT D P TUSCAN LAKES RAVELIO AT V 52 WHISPERING RANCH TUSCAN LAKES ,5 74 310 Homes | 1 THE VILLAGE y kwa $420k - $650k AT TUSCAN LAKES Par e City Leagu WATERSHED CHURCH HOMETOWN HEROES PARK 5 LOCATION OVERVIEW Shadow Anchored by two of the largest grocery stores in Texas, the recently developed 98,000 square foot HEB and recently expanded 77,000 square foot Kroger, Parkway Commons Sonic is ideally positioned on the League City Parkway (Highway 96) in one of the fastest growing markets in the state. The site is located within 3 miles of over six master-planned communities, including South Shore Harbour, Tuscan Lakes, Whispering Lakes Ranch, Meadow Bend 4, Mar Bella and South Shore Village. Having been fueled by massive employment growth in aerospace (NASA), petrochemical, and medical industries, this area of Houston is one of the leading markets for residential expansion with over 145% residential growth since 2000 within a 1 mile radius of the Property. The three largest master-planned communities within the immediate of the Property include Tuscan Lakes, South Shore Harbour and Marbella. Tuscan Lakes is an 870 acre mixed-use, master- Parkway Commons Sonic is positioned just east of the signaled intersection of the League City planned community developed by Johnson Development Corporation with over 1,850 single family Parkway and South Shore Boulevard, with recorded traffic counts of 174,552 vehicles per day. The homes. The community includes active adult living and 80 acres of multi-family dwellings for an League City Parkway (Highway 96) is the major east/west thoroughfare of League City connecting estimated 8,000 residents, with single family homes priced from $150,000 to over $1 million. South to I-45 to the west and Highway 146 to the east, providing tremendous mobility throughout virtually Shore Harbour is a 2,200 acre master planned community with roughly 1,100 single family homes every major trade area in the city. and house prices in the subdivision ranging from $170,000 to $400,000. The master-planned community of Marbella comprises a total of 482 acres, with 547 single family homes and house prices ranging from $200,000 to $450,000. DESCRIPTION 1 MILE RADIUS 3 MILE RADIUS 5 MILE RADIUS POPULATION 2021 Projection 8,904 64,212 132,389 2016 Estimate 7,907 58,614 120,898 2010 Census 6,473 51,151 105,677 2000 Census 2,922 36,983 80,472 Growth 2016 - 2021 12.6% 9.6% 9.5% Growth 2010 - 2016 22.1% 14.6% 14.4% Growth 2000 - 2010 121.5% 38.3% 31.3% 2016 Est. Median Age 35 36 37 2016 Est. Average Age 34 37 38 Households 2021 Projection 2,367 16,826 34,470 2016 Estimate 2,120 15,411 31,500 2010 Census 1,800 13,556 27,558 2000 Census 809 9,827 21,290 Growth 2016 - 2021 11.7% 9.2% 9.4% Growth 2010 - 2016 17.7% 13.7% 14.3% Growth 2000 - 2010 122.6% 37.9% 29.4% INCOME 2016 Est. Average Household Income $119,446 $96,999 $95,564 2016 Est. Median Household Income $104,308 $77,514 $72,773 HOUSING VALUE 2016 Est. Median All Owner-Occupied Housing Value $254,515 $214,201 $199,431 6 The Property is situated within the Clear Creek Independent School District (CCISD), which serves most of the Clear Lake Area and some other neighboring parts of the Houston metropolitan area. CCISD is the 29th largest school district in Texas, spanning 103 square miles and serving over 41,000 students. The district was founded in 1948 and operates 44 distinct campuses, consisting of 5 high schools, 10 intermediates, 26 elementary schools, and 3 alternative campuses, with a total staff of 4,963 to date. This school district is also poised to grow from the influx of people as nearby master-planned communities continue to grow. The schools nearest Sonic, which will have the most direct impact on the Property, are Clear Falls High School (less than 1 mile), Bayside Intermediate School (less than 1 mile), League City Intermediate School (2.5 miles), Clear Creek High School (3.5 miles) and Clear Creek Intermediate School (3.5 miles). League City has emerged as one of the healthiest job markets in the city, as its local demand drivers of the aerospace, petrochemical and health care industries were among the city’s leading areas of job growth and financial stability in 2015.