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Westheimer Marketplace 12523 WESTHEIMER ROAD, HOUSTON, TEXAS Property Dashboard

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Westheimer Marketplace 12523 WESTHEIMER ROAD, HOUSTON, TEXAS Property Dashboard Westheimer Marketplace 12523 WESTHEIMER ROAD, HOUSTON, TEXAS Property Dashboard PROPERTY SUMMARY Address: 12523 Westheimer Road Houston, TX 77077 Location: SEC of Westheimer Road & S Dairy Ashford Road Year Built 1993/2016 Net Rentable Area 141,498 Square Feet Land Area ±14.08 Acres In-Place Occupancy 97.9% Traffic Count Westheimer Road: 68,000 VPD S Dairy Ashford Road: 35,562 VPD TENANT SUMMARY Total: 103,562 VPD S&P Square % of Remaining Tenant Rating Feet Property Commencement Tenure Term Ground Lease BB&T A PAD N/A Aug-09 7.8 Years 2.3 Years Shopping Center FINANCIAL SUMMARY Starbucks A 1,850 1.3% Jul-16 0.8 Years 9.3 Years Green Ceviche 1,673 1.2% Jan-17 0.3 Years 4.8 Years Year 1 NOI $1,610,101 Lucky Sushi Bar 1,696 1.2% Dec-16 0.3 Years 4.7 Years Wtd. Average In Place Rent* $10.93 Chuck E Cheese B 22,666 16.0% Oct-12 4.5 Years 5.5 Years Goodwill 24,888 17.6% May-10 6.9 Years 3.1 Years Percent Below Market 18.8% Randall’s Food & Drugs L.P. (Albertsons) B+ 68,150 48.2% Dec-93 23.4 Years 6.7 Years Wtd. Average Tenure 14.1 Years Sublessee: SW Properties, LLC Sub-Sublessee: 24 Hour Fitness Wtd. Average Remaining Lease Term 5.6 Years Signarama 1,600 1.1% Jan-16 1.3 Years 3.7 Years Rollover Summary South Texas Dental 3,025 2.1% Sep-13 3.6 Years 6.3 Years Within 3 Years of Operation 5.8% BreWingz 4,150 2.9% Aug-08 8.8 Years 1.3 Years J&P Massage 2,000 1.4% Apr-11 6.0 Years 0.6 Years Within 5 Years of Operation 26.9% Natural Nails & Care 2,000 1.4% Mar-11 6.1 Years 1.8 Years *Wtd Average In-Place Rent Excludes BB&T Ground Lease Speed Queen B 4,800 3.4% Feb-17 0.2 Years 9.8 Years Total Leased 138,498 97.9% 14.1 Years 5.6 Years Total Property Size 141,498 NOI GRAPH TENANT BREAKDOWN LEASE EXPIRATION $1,900,000 80,000 100% $1,850,000 70,000 3% 80% $1,800,000 4,000 SF 60,000 g $1,750,000 Local 50,000 60% 1.7% 10 Year CAGR 27% $1,700,000 40,000 38,010 SF % SF Expirin Regional 40% $1,650,000 30,000 70% Square Feet (SF) 96,488 SF 20,000 $1,600,000 National 20% 10,000 $1,550,000 - 0% $1,500,000 Apr-18 Apr-19 Apr-20 Apr-21 Apr-22 Apr-23Apr-24Apr-25Apr-26Apr-27 Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10 Square Feet Expiring Cumulative SF Expiring 2 WESTHEIMER MARKETPLACE INVESTMENT HIGHLIGHTS • Albertsons Credit (Moody’s “B1” Rating) on Top of Two Subsequent Subleases for Anchor • Near Term Value Creation Opportunities | Weighted Average In-Place Rents 19% Below Space | Highly Secure Income with Rare Triple-Layered Credit Market | 3,000 Square Foot Space Available for Lease • Outstanding Tenant Sales | Top Performing Locations for 24 Hour Fitness (#1 in Texas), • 70% National, 27% Regional, and 3% Local Operators (By Square Feet) | Synergistic Goodwill (Top Half), and Chuck E Cheese (#3 in Houston) Tenant Mix with Major Tenants including 24-Hour Fitness, Goodwill, Chuck E Cheese, and Laundryworks • Average Incomes in Excess of $85,800 within a 3-Mile Radius and Population over 445,000 within a 5-Mile Radius | Positioned in the Heart Houston’s Westward Expansion • Long Term Upside Opportunity in Re-leasing 68,150 SF Anchor Space | Albertson’s Base with Population Growth of 27% Since 2000 Within Three Miles Rent represents 33% of In-Place Rent at a Rate Substantially Below Market • Opportunity to Lower Basis by One-Off Sale of BB&T Bank NNN Ground Lease (“A” S&P • Halfway Point of Westheimer Retail Corridor Serving West Houston Rooftops | Big Rating) | Hard Corner Location with Bank Deposits over $110,600 (Nearly Double the Box Retailers Under 2.5 Miles along Westheimer include Sam’s Club, HEB, Fiesta, Target, National Average) Sprouts, Trader Joe’s, Dillards, Sears 3 DEMOGRAPHICS WITHIN A THREE MILE R ADIUS: 185,442+ $85,830+ 5 YEAR AVERAGE HOUSEHOLD POPULATION GROWTH POPULATION INCOME 7.6% FITNESS WESTHEIMER ROAD (68,000 VPD) (NAP) GROUND LEASE S. DAIRY ASHFORD (35,562 VPD) DEMOGRAPHICS WITHIN A THREE MILE R ADIUS: 185,442+ $85,830+ 5 YEAR Submarket Overview AVERAGE HOUSEHOLD POPULATION GROWTH Square Feet WEST HOUSTON RETAIL TRADE AREA % Vacancy 190,000 15.0% POPULATION INCOME 7.6% TRADE AREA OVERVIEW Sam's Club Projection 13.0% Westheimer Marketplace is located in the heart of the West Houston area, serving the 140,000 dense neighborhoods of the Energy Corridor, Alief, and Westchase. This trade area bound 11.0% FITNESS by Memorial to the north, George Bush Park to the west, the Westpark Tollway to the 9.0% south, and Sam Houston Tollway to the east consists of 218 retail buildings totaling 9.56 90,000 million square feet that are 93% occupied with only 20,000 square feet of deliveries and 7.0% 128,245 square feet of net absorption over the last 12 months. 40,000 5.0% 3.0% (10,000) 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1.0% (60,000) -1.0% Deliveries SF Net Absorption Vac Rate MICRO-MARKET OVERVIEW Radius Within the submarket, Westheimer Marketplace is idealy situated in the center of the DEMOGRAPHICS 1 Mile Radius 3 Mile Radius 5 Mile Radius established Westheimer retail corridor, home to virtually every national big box retailer 2016 Population 24,582 185,442 445,394 with operations in Houston and a large variety of institutional ownership. This corridor 2021 Projected Population 26,504 199,476 477,288 stretching from Highway 6 to the Sam Houston Tollway consists of 5.0 million square Growth Since 2010 10.3% 10.0% 9.1% feet of inventory in 112 properties which are 90.6% leased with 89,375 square feet of net Projected Growth (Next 5 Years) 7.8% 7.6% 7.2% absorption seen over the last 12 months. Average Household Income $81,864 $85,830 $80,599 Median Housing Value $55,993 $56,688 $49,898 Estimated Median Age (Years Old) 35.3 34.9 34.3 WESTHEIMER ROAD (68,000 VPD) 2.5 MILES 2.5 MILES WESTHEIMER ROAD (NAP) GROUND LEASE WESTHEIMER MARKETPLACE S. DAIRY ASHFORD (35,562 VPD) 5 Grand Pkwy 69 LIBERTY Lake COUNTY The Woodlands Houston MONTGOMERY State Park ExxonMobil COUNTY Corporate Headquarters Eastex Frwy HARRIS COUNTY Proposed George Bush Intercontinental Greenspoint Airport Grand Pkwy Sam Houston Pkwy 69 Northwest Frwy North Frwy Beaumont Hwy North Loop Baytown East Frwy Katy Frwy WESTHEIMEREnergy MARKETPLACE Corridor The Galleria CBD George Bush Westchase Park Uptown District Westheimer Rd East Loop Westpark Tollway Texas Pasadena Frwy Medical Port of Houston West Loop West Center South Loop Southwest Frwy Barbour’s Cut Terminal FORT BEND 69 William COUNTY P. Hobby Pkwy Airport Sam Houston Tollway Bayport Terminal Bend Gulf Frwy Armand Bayou Park Fort South Frwy GALVESTON COUNTY BRAZORIA Proposed Grand Pkwy COUNTY 6 WESTHEIMER MARKETPLACE Site Plan Property Description W ESTHEIMER ROAD (68,000 VPD) Project SF: 141,498 Square Feet (Excluding BB&T Ground Lease) Address: 12579 Westheimer Road Houston, TX 77082 GROUND LEASE Year Built: 1993 - 2016 SMOOTHIE KING I TACO Site Area: ±14.08 acres BELL SUSH CEVICHE Parking: The property provides concrete surface parking for 741 cars or a ratio of JEWELRY STORE 5.11 spaces per 1,000 square feet ) BURGER KING Construction: Basic Construction - Steel and masonry Framing – Structural steel with masonry and concrete encasement Exterior Walls – Brick Typical Interior Finish: The improvements have typical retail finishes that vary based on each tenant concept. All spaces are 2nd generation space with interior finish. ASHFORD ROAD (35,562 VPD Y Air Conditioning: HVAC DAIR Roof: Built-up assemblies with tar and gravel cover A Ceiling System: 2 x 4 acoustical tile or exposed ceilings BAR & AL GRILL DENT SIGNARAM Concrete paving, concrete sidewalks, concrete curbing, pole mounted ail.-3,000 SF Landscaping: MASSAGE Av lights and low maintenance sprinkle red landscaping NAILS SPEED Foundation: Reinforced concrete slabs QUEEN Tenant: Randall’s Food & Drugs L.P. (Albertsons) Sublessee: SW Properties, LLC Sub-Sublessee: 24 Hour Fitness Lighting: Fluorescent (NAP) Fire Protection & Electrical: Each tenant is separately metered Zoning: The subject is located in the City of Houston and Harris County. There are no zoning ordinances for the City of Houston or Harris County. Land use is primarily controlled by means of private deed restrictions WESTHEIMER MARKET PLACE Reciprocal Easement Agreement: None 7 ADDITIONAL INFORMATION RYAN WEST Senior Managing Director | [email protected] | 713-852-3535 WILLIAM DUNCAN Analyst | [email protected] | 713-852-3435 JOHN INDELLI Associate | [email protected] | 713-852-3407 DEBT FINANCING COLBY MUECK Managing Director | [email protected] | 713-852-3575 This Offering Memorandum has been prepared by HFF for use by a limited number of recipients. All information contained herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, expressed or implied, as to the accuracy or completeness of the information contained herein.
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