Offering Memorandum - NewQuest Properties

$3,890,000.00
The Center at Memorial - Offering Memorandum
6.00% Cap Rate
SEC HIGHWAY 6 & MEMORIAL DRIVE | HOUSTON, TEXAS
Presented by Rebecca Le and John Nguyen | 281.477.4300 | www.newquest.com
Investment Overview
• 2,450 SF second generation end cap available
Located in the Energy Corridor which contains over 24 million square feet of office space. Many companies use the Energy Corridor as corporate
Elevated ExxonMobil,
sign band and
opportunity
available
on pylon
sign Oil
or regional headquarters including BP America, Citgo, Conoco Phillips, Dow•Chemical,
Mustang
Engineering,
Technip
USA, Shell
and Worley Parsons.
45
Strong national and regional retailers with excellent remaining lease term and
a secure income stream. Investment
upside
Demographics
2.00
Mi includes
3.00 the
Mi opportunity
The
for a bank ATM ground lease.
Woodlands 68,953
99
Active Population
27,189
249
Prime investment property located on Houston’s prestigious Memorial Drive.Residential
State Highway
6 spans 476 miles from
the Texas/Oklahoma
boundary
Count:
12,573
31,177
to Galveston, Texas.
Average Household Income
$119,386
$102,067
Tomball
Higher-income residential population and education levels. Within a 2 mileGrowth
and 3 mile
radius
66%
and 59% of24.41%
the population
has a bachelors or
Since
2010
Census
22.12%
graduate degrees. Annual average household income of $119,000 and $102,000 within the two and three mile radius.
99
1960
249
Cypress
Property Overview
• Residential communities nearby: Fleetwood, Memorial Thicket,
Conroe
Marywood, Briar Hills, Barkers Landing and Terraces on Memorial
HCTRA
TOLLWAY
HC
TOL
59
36
6
45
290
HCTRA
610
TOLLWAY
10
Katy
1
Houston
HCTRA
TOLLWAY
59
ATM Opportunity
99
90
288
HCTRA
36
TOLLWAY
2
45
Price: $3,890,000.00
First Year NOI: $233,508.48
Cap Rate: Property Overview
Investment Highlights
6.00%
Address: 803 Highway 6 South
Houston, Texas 77079
Year Built: 2005
Building Size:9,971 SF
Lots Size:
36,660 SF (0.84 acres)
Tenants: Starbucks Coffee
Kolache Factory
Check N Go
New Thai Massage
Upscale Nails
Fusion Hookah Lounge
3
Site Aerial
Property Overview
ENERGY
CORRIDOR
te 10
a
t
s
r
Inte
Hi
gh
w
ay
r.
D
l
a
ori
Mem
6
SITE
4
Site Aerial
Property Overview
5
Property Overview
Site Plan
The Center at Memorial
SEC of Memorial Dr. and Highway 6 | Houston, TX
THAI
MASSAGE
NAIL
SALON
FUSION
HOOKAH
AVAILABLE
LOUNGE
6
2010 Census, 2015 Estimates with Delivery Statistics as of 09-2015
Calculated using Weighted Block Centroid from Block Groups / Proportional Postal Hybrid
CPP1
806 Highway 6
2 Miles
3 Miles
5 Miles
Current Households
12,590
31,352
101,837
Current Population
27,234
69,322
257,491
2.16
2.21
2.53
2010 Census Population
22,402
57,335
218,025
Population Growth 2010 to 2015
22.01%
21.08%
18.31%
1 Person Household
36.07%
36.73%
29.44%
2 Person Households
34.49%
31.71%
30.22%
3+ Person Households
29.44%
31.56%
40.34%
Owner-Occupied Housing Units
45.95%
40.31%
50.51%
Renter-Occupied Housing Units
54.05%
59.69%
49.49%
2015 Estimated White
65.56%
59.58%
54.35%
2015 Estimated Black or African American
10.09%
15.96%
19.50%
2015 Estimated Asian or Pacific Islander
17.02%
14.61%
13.21%
2015 Estimated American Indian or Native Alaskan
0.23%
0.36%
0.46%
2015 Estimated Other Races
7.11%
9.48%
12.49%
2015 Estimated Hispanic
17.81%
21.46%
28.45%
2015 Estimated Average Household Income
$118,545
$103,749
$94,102
2015 Estimated Median Household Income
$93,128
$80,268
$73,504
2015 Estimated Per Capita Income
$55,508
$47,756
$38,059
2015 Estimated High School Graduate
11.05%
13.95%
17.16%
2015 Estimated Bachelors Degree
36.80%
34.26%
28.28%
2015 Estimated Graduate Degree
22.77%
20.22%
15.83%
39.1
35.9
34.7
EDUCATION
(AGE 25+)
INCOME
RACE AND ETHNICITY
CENSUS HOUSEHOLDS
POSTAL COUNTS
Houston, TX
2010 Census Average Persons per Household
2015 Median Age
page 1 of 1
Demographics
The
Center
at Memorial - Demographic Report
Lat/Lon:
29.7749/-95.6439
Property Overview
, 480-491-1112
CUSTOM POSTAL PROFILE
7
Demographic Source: Applied Geographic Solutions 11/2015, TIGER
National Tenants
Starbucks
Starbuck Corporation Guaranty and a drive thru
location. Ten (10) year term remaining on the
lease with three (3) five (5) year options.
Tenant Overview
Starbucks is the largest coffeehouse company in
the world operating in 68 countries and is one
of the most recognized and respected brands in
the world. Starbucks is publicly traded company
and is an Investment Grade Company rated A- by
Stand and Poor’s S&P (NASDAQ: SBUX). There
are 12,235 company operated stores.
Kolache Factory
Kolache Factory is privately owned and operated
with over 50 locations in Houston and is also
located in Missouri, California, Nebraska, Virginia,
Colorado, and New Mexico. Corporate Guaranty.
Check N Go
Founded in 1994, Check N Go is a prominent
leader in the payday loan industry with over 1,000
stores in 31 states.
8
Largest
Energy
Corridor Employers
Company
Name
Employees
• 24 million square feet of office space (of which 78% is Class A)
• 2.8 million square feet of retail
• The Energy Corridor is the second largest office employment center in the
region and one of Houston’s premier areas for an active, healthy lifestyle.
• Destined to be a central focus of Houston’s economic growth for years to
come. By 2030, office/mixed-use space is expected to reach 45.2 million
square feet.
The Energy Corridor
• The Energy Corridor includes a population of nearly 22,000 and over 92,000
jobs.
10,960
9,537
3,000
3,000
2,100
2,000
2,000
1,800
1,800
1,367
1,330
1,000
1,000
985
850
750
750
700
700
600
500
450
450
450
430
430
400
400
350
350
300
300
300
300
295
230
221
220
212
200
200
200
200
Houston Overview
Energy Corridor Quick Facts
Wood Group
BP America, Inc.
Conoco
Shell Oil Company, Woodcreek
Methodist West Houston Hospital
Mariner Post‐Acute Network
The Friedkin Group
Sysco Corporation
Technip USA Inc.
CITGO Petroleum Corporation
Dow Chemical
Foster Wheeler USA Corporation
Texas Children's Hospital West
Mustang Engineering (a Wood Group
Star Furniture Company
Cardinal Health Pharmacy Services
ExxonMobil Chemical
Garden Ridge
KBR Inc.
Gulf States Toyota, Inc.
James Coney Island
Alliance Engineering
Sercel Inc.
Worley Parsons
Gulf Interstate Engineering Co.
Houston Community College ‐ Katy
J. Ray McDermott, Inc.
McDermott International Inc
Expro Americas LLC
Top Golf
Clover Global Solutions LP
Diamond Offshore Drilling, Inc.
Saipem America Inc.
Stone & Webster Mgt. Consultant, Inc.
PGS Americas
Mossy Nissan
Omni Houston Hotel Westside
Westside Lexus
Sam's Club ‐ Highway 6 North
Atwood Oceanics
Global Industries, Ltd.
SBM Atlantia, Inc.
Sonangol USA
9
Source: CDS Market Research, based on data from the Greater Houston Partnership business da
Downtown Houston
Houston Quick Facts
POPULATION
• City of Houston: 2,119,831 with a forecasted growth of 140,000 per
year
• Houston MSA: 6,117,035 (9 counties), with a projection of 7.2+ million
by 2018
US COMPARISON
• 4th largest city
• 3rd largest county (Harris)
• 5th largest MSA
ECONOMY
• 480.6 billion nominal gross area product for the Houston MSA
• If it were ranked as a country, Houston would rank as the world’s 24th
largest economy, just behind Norway.
• The Houston MSA added 491,500 jobs from 2010 to 2015
EMPLOYMENT (NON-FARM)
• Total employment for the Houston MSA was 3,015,800 in 2015, a record
for the region.
• Unemployment is significantly lower in the Houston MSA then the rest
of the nation: 4.6% versus a national average of 5.6%
Galleria / Uptown
Houston Overview
INCOME
• Per capital personal income (PCPI) of $47,682 (17% above national
average)
• PCPI increased by 5.9% in the Houston MSA, compared to 4.4%
nationally in 2010
HOUSING
• Single family home closings were 73,724 in 2015 (the second-best year
on record for home sales.)
• Metrostudy forecasts 25,000 new home starts in 2016
COST OF LIVING
• Houston’s cost of living is 5.8% below the national average
• Houston’s housing costs are 11.6% below average, and 37.3% below
average for large metro areas
10
percent, versus a national average of 7.8 percent.
CORPORATE ECONOMY
• Ranked 3rd in the nation among US metro areas for the number of Forbes
Fortune 500 company headquarters
• Home to 25 of the Fortune 500, 7 of the Fortune Global 500, and 25 of Forbes
Flags representing the U.S. and other countries around the world
Global 2000 companies
THE TEXAS MEDICAL CENTER International Business
• World’s largest medical complex,
home to many of the world’s leading instituHouston, a major international city, consistently ranks among the
tions
top three U.S. cities in the number of foreign consulates. It is the
• Encompasses 45.8 million SF,
employs
106,000
people, and
over
million
base
of operations
for the international
oil and
gas7.2
exploration
annual patient visits
and production industry and for many of the nation’s largest
international engineering and construction firms.
THE PORT OF HOUSTON & HOUSTON SHIP CHANNEL
 A key center for international finance, Houston leads the
• Nationally ranked 1st in foreign
tonnage, 1st in import tonnage, and 2nd in
Southwest with 20 foreign banks from 9 nations. The Houston
overall tonnage for over 17 consecutive years
operations of these banks account for 12 of Texas’ 17 foreign
• Contributes to over 1,026,820 jobs
throughout Texas
bank representative offices and seven of Texas’ nine foreign
• Home to the largest petrochemical
bankcomplex
agencies. in the U.S. (second largest in the
world)
 Ninety-two nations have consular offices in the city, ranking
Houston’s consular corps 3rd largest in the nation.
offices here, and the city has 25 active foreign chambers of
commerce and trade associations.
 Consumers can search the Houston Association of Realtors®
properties database (HAR.com) in English, Spanish, Chinese,
French, German, Italian and Vietnamese. The association’s 5,475
multilingual realtors speak 92 languages other than English.
 Houston has two Chinese daily foreign-language newspapers,
plus at least 21 less frequently published newspapers and
magazines in a variety of languages. Two television stations
present programming in Spanish and one station includes
programming in Chinese. Spanish broadcasting has a
significant presence on radio (14 stations), which also includes
programming in several Asian languages.
 Houston has 17 sister-city relationships promoting business
opportunities across five continents: Australia (1), Asia (6),
Europe (7), Africa (1) and Americas (2).
 In July 2013, the Greater Houston Partnership’s database listed
3,341 Houston area firms, foreign government offices and
nonprofit organizations involved in international business.
• 395 Houston area companies report having offices abroad in
141 countries
• 745 firms in Houston report foreign ownership
Company
Employees
Memorial Hermann Health System
19,500
The University of Texas MD Anderson
19,290
United Airlines
17,000
Exxon Mobil Corporation
13,191
Shell Oil Company
13,000
Houston Methodist
13,000
Kroger Company
12,000
National Oilwell Varco
10,000
Schlumberger Limited
10,000
BP America, Inc.
9,537
UTMB Health
9,318
Baylor College of Medicine
9,232
Chevron
9,000
HP
9,000
ARAMARK Corp.
8,500
Pappas Restaurants, Inc.
8,000
HCA
7,855
Macy’s
7,000
AT&T
6,900
The Dow Chemical Company, Freeport
6,100
Baker Hughes Incorporated
6,000
H.E.B.
6,000
St. Luke’s Episcopal Health System
6,000
Texas Children’s Hospital
6,000
Jacobs
5,800
Halliburton
5,748
Fiesta Mart, Inc.
5,500
Archdiocese of Galveston-Houston
5,220
KBR
5,089
LyondellBasell Industries
5,080
CenterPoint Energy
5,000
JPMorgan Chase
5,000
Note: Ranked by number of employees. The list does not include
casual dining establishments, municipalities, school districts,
community colleges, public universities (except UTMB Health and
The University of Texas MD Anderson) and governmental agencies.
Source: Greater Houston Partnership Database, July 2013
Houston Overview
 Fifteen foreign governments maintain trade
andMedical
commercial
Texas
Center
Largest
Houston
Employers
Largest
Houston
AreaArea
Employers
- 2013
11
Disclaimer
Prospective purchasers are hereby advised the Owners (“Owner”) of the Property are soliciting offers through NewQuest Properties (“NewQuest”), which
may be accepted or rejected by the Owners at the Owners’ sole discretion.
Any solicitation of an offer for the Property offered hereunder will be governed by this Offering, as it may be modified or supplemented. Prospective
purchasers are advised that as part of the offer process, the Owners will be evaluating several factors including the experience and financial qualifications of
the purchasing entity.
The Owners shall have no obligation to accept any offer from any prospective purchaser. The Owners reserve the right to withdraw the Property from
consideration at any time prior to final execution of a Purchase Agreement.
This Offering document is furnished to prospective purchasers for the purpose of determining whether to invest in the Property offered hereby. The
information contained herein, or any other related information provided by the Owners, may not be reproduced, redistributed or used in whole or in part
without the prior written consent of the Owners.
No person has been authorized to give any information or make any representation or warranty, either expressed or implied and, if given or made, such
information or representation must not be relied upon.
While the Owners and NewQuest have no reason to believe that the information provided herein or in subsequent information updates delivered to potential
purchasers hereunder contains any material inaccuracies, neither the Owners nor NewQuest nor any of the Owners’ or NewQuest’s respective subsidiaries,
affiliates, companies, or the officers, directors, employees, agents and representatives of any such entities, etc., make any representations or warranties,
expressed or implied, as to the validity, accuracy or completeness of the information provided or to be provided, and nothing herein shall be deemed to
constitute a representation, warranty or promise by any such parties as to the future performance of the Properties or any other matters set forth herein.
Any obligations to prospective purchasers that the Owners may have with respect to the Properties are limited to those expressly set forth in a fully executed
Purchase Agreement between the parties. Prospective purchaser’s sole and exclusive rights against the Owners, with respect to this prospective transaction,
the Property, or information provided herein or subsequently, shall be limited to those remedies expressly provided in an executed Purchase Agreement,
which shall not survive the closing. Further, in no event shall prospective purchasers have any claims against the Owners, NewQuest, or any of their respective
affiliates for any damages, liability, or causes of action relating to the Purchase Agreement.
No commission or finder’s fee shall be payable to any party by the Owners nor any affiliate or agent thereof in connection with the sale of the Property unless
otherwise agreed to by the Owners in writing.
Disclaimer
Prospective purchasers are not to construe the contents of this Offering or any prior or subsequent information communications from the Owners or any of
their respective officers, employees or agents as legal, tax or other advice. Prior to purchasing, prospective purchasers should consult with their own legal
counsel and personal and tax advisors to determine the consequences of an investment in the Property and arrive at an independent evaluation of such
investment.
Acquisition of properties such as the these offered hereunder involves a high degree of risk and are suitable only for persons and entities of substantial
financial means.
12
Please Submit Offers to
Rebecca Le
281.477.4327
[email protected]
John Nguyen
281.477.4326
[email protected]
8827 W. Sam Houston Parkway, N. Suite 200
Houston, Texas 77040
www.newquest.com
03.09.2016