3610 Stagg Drive | Beaumont, TX 77701 OFFERING MEMORANDUM 1 5 PROPERTY OVERVIEW 7 FINANCIAL OVERVIEW 10 AREA OVERVIEW 14 TENANT OVERVIEW THOR ST JOHN MICHAEL MORENO RAHUL CHHAJED Associate AVP & Director Senior Associate Healthcare Healthcare Healthcare BROKER OF RECORD KYLE MATTHEWS D: (310) 955-1774 D: (949) 432-4511 D: (949) 432-4513 License No. 9005919 (TX) M: (510) 684-0574 M: (818) 522-4497 M: (818) 434-1106 E: [email protected] E: [email protected] E: [email protected] License No. 02051284 (CA) License No. 01982943 (CA) License No. 01986299 (CA) 2 PROPERTY NET LIST PRICE CAP RATE ADDRESS RENTABLE AREA 3610 Stagg Drive ±15,744 SF $4,320,000 6.60% Beaumont, TX 77701 INVESTMENT HIGHLIGHTS Phenomenal Retail Synergy – The site is the only outparcel to the Gateway Shopping center, the largest in the entire city at 289,000 SF High Traffic Corridor – Located just a block away from I-10, which sees over 100,000 cars per day Expansion Clinic – UT Physicians recently expanded the facility to accommodate additional patients, proving their long-term commitment to the location State of Texas Credit – UT Physicians is operated by the University of Texas. This provides one of the strongest guarantees available for a medical facility Below Market Rent – Safelite Autoglass is paying just $12.00/SF, which is below the market rate for retail in the area. They have just one 5-Year option remaining Very Attractive Lease Structure – Both tenants are on NNN leases, making this an ideal property for an out of state investor Hospital Synergy – Located two blocks away from Baptist Hospitals of Southeast Texas, which provides easy access for patients looking to be seen faster than at an emergency room 3 SURROUNDING AREA MAPS 90 ± 55,500 VPD STAGG DR. S. 11 TH ST. ± 16,700 VPD SUBJECT PROPERTY 4 PROPERTY OVERVIEW 5 PHYSICAL DESCRIPTION PROPERTY NET TOTAL CURRENT CAP ADDRESS RENTABLE AREA TENANTS OCCUPANCY RATE 3610 Stagg Drive ±15,744 SF 2 100.0% 6.60% Beaumont, TX 77701 PARCEL MAP 9 6 SITE PLAN 7 EAGLES AGLES E LANDING ANDING L FINANCIAL OVERVIEW 8 LEASE SUMMARY & RESPONSIBILITIES Tenant Guarantor Taxes Maintenance Insurance Management UT Physicians Corporate Tenant Pays Tenant Pays Tenant Pays Tenant Pays Safelite AutoGlass Corporate Tenant Pays Tenant Pays Tenant Pays Tenant Pays VALUATION SUMMARY PRICING SUMMARY: List Price $4,320,000 Price PSF ($) $274 RETURNS SUMMARY: In Place Cap Rate 6.60% Financial: Year 1 NOI $284,928 Net Rentable Area ± 15,744 SF In Place Occupancy 100.0% 9 RENT ROLL Lease Lease Square Contract Rental Rate Rent PSF Tenant SF % of GLA % of Revenue Options Start Expiration Footage Year Month (Annual) UT Physicians 7/1/17 6/30/27 12,000 76.2% $240,000 $20,000 84.2% $20.00 Four (4) Five (5) Year Options Safelite AutoGlass 6/1/11 5/31/21 3,744 23.8% $44,928 $3,744 15.8% $12.00 One (1) Five (5) Year Option Totals 15,744 100.0% $284,928 $23,744 100.0% $18.10 10 EAGLES LANDING TENANT OVERVIEW 11 Safelite Group, Inc. is an American provider of vehicle glass repair, With more than 2,000 clinicians certified in more than 80 medical replacement, and calibration services and insurance claims management specialties and subspecialties, UT Physicians provides multi-specialty company, based in Columbus, Ohio. With more than 70 years of service, care for the entire family. UT Physicians helps patients needing urgent, Safelite knows auto glass. Safelite was founded at a single location in highly specialized or complex care and also provides high-quality, Wichita, Kansas in 1947 and has grown to become the largest auto glass wellness-oriented primary care for routine illnesses and maintenance specialist company in the United States with more than 720 locations of good health. nationwide, employing ± 13,000 people nationwide. UT Physicians is committed to providing the best that medicine has to offer with quality care that incorporates the latest medical treatments Safelite is composed of three major business operations: and innovations and the most up-to-date technology. This commitment • Safelite Fulfillment, Inc., – Auto glass fulfillment services, operating is supported by a team of expert physicians that can consult with you under the trade name Safelite AutoGlass. on virtually every type of medical condition and a philosophy that prevention and education are essential to overall wellness. • Safelite Solutions LLC, Safelite Group’s claims management operation, which processes P+C claims for fleet and insurance UT Physicians has many hospital affiliations such as, Memorial Hermann- companies. Texas Medical Center, The Lyndon B. Johnson (LBJ) General Hospital, MD Anderson Cancer Center, and TIRR Memorial Hermann. • Service AutoGlass®, a national provider of wholesale vehicle glass products as well as installation and repair materials and tools. WWW.UTPHYSICIANS.COM WWW.SAFELITE.COM 12 EAGLES LANDING AREA OVERVIEW 13 BEAUMONT, TX LOCATION MAP Beaumont, TX is a city that’s economy is based around the Port of Beaumont, one of the nation’s largest ports when measured by tonnage. The Port of Beaumont, Port Arthur and Orange make up the golden triangle in terms of being a major industrial area on the Gulf Coast. Beaumont is also one of the largest military ports in the world. Beaumont, TX is also home to Lamar University. Various museums including, Art Museum of Southeast Texas, the Dishman Art Museum, Spindletop-Gladys City Boomtown Museum, the Edison Museum, the Fireman Museum of Texas, the McFaddin- Ward House and Beaumont Botanical Gardens bring culture to the area. DEMOGRAPHICS Population 1 Mile 3 Mile 5 Mile 2024 Projection 4,839 55,603 107,699 2019 Estimate 4,753 54,690 104,996 2010 Census 4,865 56,082 105,234 Growth 2019-2024 1.81% 1.67% 2.57% Households 1 Mile 3 Mile 5 Mile 2024 Projection 1,815 22,114 42,034 2019 Estimate 1,779 21,725 40,925 2010 Census 1,818 22,229 40,950 Growth 2019-2024 2.02% 1.79% 2.71% Income 1 Mile 3 Mile 5 Mile Average Household Income $47,906 $63,588 $69,153 Median Household Income $29,707 $39,615 $45,709 14 HOUSTON, TEXAS The city of Houston, Texas is located in southeastern part of the state near the Gulf of Mexico. It is the most populous city in Texas and the fourth most populous city in the United States. Known as the Bayou City for its waterway system, Houston thrives because it is a great place to work and a great place to live. Alive with energy and rich in diversity, Houston is a dynamic mix of imagination, talent and first-class attractions that makes it a world-class city. It exudes a cosmopolitan and down-home vibe while being nicknamed the “Space City”. With more than 2.2 million residents, Houston attracts visitors and transplants with a wonderful mix of world-class arts, booming business, pro sports and award-winning cuisine. Houston is a city of endless possibilities: Its history has been marked with achievements from the first word heard from the moon to the first artificial heart transplant. A distinctly favorable business climate promotes trade, commerce, industry and economic growth in the Houston region. Many businesses recognize the allure of all Houston has to offer; There are twenty-five Fortune 500 companies that call the Energy Capital of the World home. Once dominated by oil- related jobs, Houston’s economy has diversified as new, core industries join energy in the regional employment mix. With a strong infrastructure and a highly-trained workforce, Houston has the resources to support its growing industries, namely energy, health care, nanotechnology, aerospace, and information technology. The Port of Houston, one of the region’s greatest assets, ranks as the nation’s largest port in international tonnage and second in total tonnage. It is an economic engine that produces jobs and economic prosperity for the local Houston and state economy. Throughout its history, whenever the port has grown, Houston has also grown, showing that it has been instrumental in the city’s development as a center of international trade. 15 MUSEUM OF FINE ARTS The Museum of Fine Arts located within the Houston Museum District is one of the largest museums in the United States. The permanent collection of the museum spans more than 6,000 years of history with approximately 64,000 works from six continents. Each year, 1.25 million people benefit from the museum’s programs, workshops, and resource centers. DOWNTOWN AQUARIUM Houston’s Downtown Aquarium is a public aquarium and restaurant located that was developed from two Houston landmarks: Fire Station No. 1 and the Central Waterworks Building. It houses over 200 species of aquatic animals in 500,000 gallons of aquariums. The complex includes two restaurants, a bar, and banquet facilities. THE GALLERIA As the largest mall in Texas and ninth largest in the country, the Galleria is an upscale mixed-use urban development centrally located in the Uptown District of Houston. With 35 million annual visitors, The Galleria has been named the most visited attraction in Houston. On top of an ice skating rink, the mall holds over 375 stores and is currently anchored by Neiman Marcus, Nordstrom, Saks Fifth Avenue and Macy’s. SPACE CENTER HOUSTON Space Center Houston is the official visitor center of the Lyndon B. Johnson Space Center—the National Aeronautics and Space Administration’s (NASA) center for human spaceflight activities. Along with the Northrop Grumman Theater and special tours the center is also home to many space artifacts and hardware including the Apollo 17 command module, the Saturn V and more.