Champions fairway center

Champions fairway center
high income, high growth houston
3-tenant
strip center
5950 FM 1960 W,
Houston, TX 77069
John Andreini | [email protected] [415] 274-2715
CA BRE#: 01440360
Rick Sanner | [email protected] [415] 274-2709
CA BRE#: 01792433
Bob Sanner | [email protected] [415] 274-2717
CA BRE#: 00869657
In conjunction with TX Licensed broker:
Steve Sieling, Azur Commercial Capital, LLC
(214) 888-8262 | [email protected]
8150 North Central Expressway Suite M2040, Dallas, TX 75206
CHAMPIONS FAIRWAY CENTER IS A 3-TENANT STRIP
CENTER LOCATED IN HOUSTON, TEXAS
Investment Highlights
Champions Fairway Center offers an investor a unique
opportunity to acquire a 100% leased, three tenant strip center
located in affluent northwest Houston on a major six lane
retail corridor, FM 1960 W, at a very favorable current cap
rate, with possible immediate upside.
PRICE: $1,500,204
CAP: 8.10%
RENTABLE SF. . . . 8,056 SF
HIGHLIGHTS
Low price per square foot
LEASE TYPE. . . . . . NNN
PRICE PER SF. . . . $166.85
LAND AREA. . . . . . 0.46 Acres
Excellent visibility and signage along FM 1960 W
Daily traffic counts are over 52,000 on FM 1960 W
Near the Willowbrook Mall and adjacent to Champions Golf Club, established
by Jack Burke
New roof
LOCATION HIGHLIGHTS
Located in the heart of one of the most active and growing business climates in the country
Class A office vacancy rates are below five percent (5%) in northwest Houston
Located near the technology corridor of Houston which runs along State Highway 249, in northwest Houston
Notable tenants include: Hewlett-Packard and Noble Energy
Borders the affluent Champions/Raveneaux neighborhoods– average incomes
over $96,000 in a one mile radius
High-growth densely populated area, almost 100,000 people in a three mile
radius
Nearby national tenants include: CVS, Target, Walgreens, Sam’s Club, Macy’s,
Dillard’s, Ross, and Walmart
CHAMPIONS FAIRWAY | 2
Income & Expense
ACTUAL:
INCOME
Scheduled Rent
CAM Recovery
EFFECTIVE GROSS INCOME
Market Vacancy Reserve (Scheduled Rent)
ADJUSTED GROSS INCOME
EXPENSES
CAM Expenses
Property Management Fee (3%)
Structural Reserve ($0.10/sf)
TOTAL OPERATING EXPENSES
NET OPERATING INCOME
35%
65%
100.00%
0.00%
$1,500,204
8.10%
$186.15
$525,071
$975,133
8,059
8,059
Per Square Foot
$15.86
$4.81
3.00%
$127,808
$38,769
$166,577
($4,997)
$161,580
Per Square Foot
-$4.25
-$0.62
-$4.87
($34,260)
($4,997)
($806)
PROPOSED LOAN SCENARIO:
CASH FLOW & DEBT SERVICE
Price:
Capitalization Rate:
Price Per Square Foot:
Down Payment
Loan Amount
Total Leased (SF):
Total Vacant (SF):
Total Rentable Area (SF):
Loan Amount
Interest Rate
Amortization
Term
Debt Service
Monthly Debt Service
Pre-Tax Cash Flow
Debt Coverage Ratio
Pre-Tax Leveraged Cash-on-cash Return
Principal Paydown (Year 1)
Total Return
Yield
$975,133
4.50%
25 Year
5
$65,041
$5,420
$56,475
1.87
10.76%
$21,602
$78,077
14.87%
$40,063
$121,517
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
1/14/2015
Capital Pacific Real Estate Brokerage Co.
CHAMPIONS FAIRWAY | 3
Rent Roll
Actual Rent
Sq. Ft.
Percent of
GLA
Lease Start
Lease
Expiration
Darque Tan
3,002
37.25%
11/1/03
10/31/16
$3,752.50
Medina Flooring
3,732
46.31%
10/1/13
1/31/19
2/1/19
Tenant
Option 1
Hair by Kenny
1,325
16.44%
Option 1
Current Totals:
Occupied
Option 2
8,059
8,059
100.00%
100.00%
Monthly Base Monthly
Rent
Rent/SF
Annual
Rent/SF
Annual Rent
Monthly Cost
Recovery
Annual Costs
Recovery
$1.25
$15.00
$45,030.00
$970.37
$11,644.44
$5,131.50
$1.38
$16.50
$61,578.00
$1,206.34
$14,476.03
1/31/24
$5,598.00
$1.50
$18.00
$67,176.00
1//1/15
12/31/24
$1,766.67
$1.33
$16.00
$21,200.04
$428.29
$5,139.53
1/1/25
12/31/30
$1,877.00
$1.42
$17.00
$22,525.00
1/1/31
12/31/36
Totals
$1,877.00
$10,651
$1.42
$17.00
$22,525.00
$127,808
$127,808.04
$2,605.00
$31,260.00
CAM
CAM/SF
$31,260.00
$3.88
CAM includes insurance and
property tax
Electricity
Water/Sewer
Dumpster
Landscaping
Repairs
Insurance
Taxes
Total
$1,625
$1,484
$4,192
$2,071
$2,020
$4,500
$15,368
$31,260
* Darque Tan has no further options
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
CHAMPIONS FAIRWAY | 4
1/14/2015
Capital Pacific Real Estate Brokerage Co.
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Windfern
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Christian
School
Francone
Elementary
CHAMPIONS FAIRWAY | 5
Tenants
Darque Tan
Darque Tan is a premier tanning salon
providing the highest quality sunbeds
and spray tanning available in their more
than 75 locations nation wide. Located
at this site since 2003, Darque Tan has
provided luxury tanning services and
equipment while consistently promoting
safe tanning for all clients.
Medina Flooring
Medina Flooring provides numerous
types of flooring products that not only
look great, but also serve the needs of
those who live and work within. With
over 60 contracted employees, Medina
Flooring recently relocated to this
location for more space.
Hair by Kenny
Hair by Kenny is a boutique hair salon
providing the latest in hair design for
men, women, and children. The tenant
has been in business for over 20 years
and has recently relocated from down
the street to accommodate for his
expanding business.
CHAMPIONS FAIRWAY | 6
Area Retail Photos
CHAMPIONS FAIRWAY | 7
Regional Map
TRAFFIC COUNTS
OF 49,000 AND
56,580 WITHIN 0.1
MILE RADIUS
CHAMPIONS
FAIRWAY
CHAMPIONS FAIRWAY | 8
Location & Demos
HOUSTON, TX OVERVIEW
The Cypress area is located along U.S. Highway 290 (Northwest Freeway)
approximately twenty-five miles northwest of downtown Houston. The
Cypress urban cluster ranks 50th in the top 100 highest-income urban
areas in the United States. Large scale residential and commercial
development beginning in the 1980s transformed the once rural area into
one of Houston area’s largest suburban communities.
Houston is the largest city in Texas and the fourth-largest city in the
United States. It is also one of the fastest growing areas in the country.
Houston’s economy has a broad industrial base in energy, manufacturing,
aeronautics, and transportation. It is also leading in health care sectors
and building oilfield equipment; only New York City is home to more
Fortune 500 headquarters. The Port of Houston ranks first in the United
States in international waterborne tonnage handled and second in total
cargo tonnage handled. The city has a population from various ethnic and
religious backgrounds and a large and growing international community.
It is home to many cultural institutions and exhibits, which attract more
than 7 million visitors a year to the museum district.
Within a 3 mile radius, growth between 2010 and 2018 is projected
to be 12.5%. Within a 1 mile radius, growth for the same time period
is projected to be16.5%.
POPULATION
2010 Population
2013 Population
2018 Population (Projection)
1 Mile
3 Miles
5 Miles
10,983
11,646
12,704
95,726
99,328
107,274
271,246
282,048
304,761
$96,020
$66,676
$90,110
$62,322
$86,047
$61,344
2013 HOUSEHOLD INCOMES
2013 Average Household Income
2013 Median Household Income
TOP EMPLOYERS
Memorial Hermann Healthcare
Univ. of Texas M.D. Anderson Cancer Center
ExxonMobil
Shell Oil Company
CHAMPIONS FAIRWAY | 9