investment offering | $1730000

SUBJECT PROPERTY
INVESTMENT OFFERING | $1,730,000
Starbucks
104 S HWY 288, Lake Jackson, TX – HOUSTON Metro
214.915.8890
JOE CAPUTO
[email protected]
BOB MOORHEAD
[email protected]
RUSSELL SMITH
[email protected]
property. New 2,028+ SF building on 0.5+ acre site.
tenant. Starbucks Corporation | 2012 financials: $13.3 billion in sales and $1.38 billion in revenue | 18,066 locations worldwide.
lease structure. New, 10-year, corporate net lease with 10% rent increases in year 6 and every subsequent 5-year period.
location. Starbucks is strategically located along Highway 288 (42,200 Cars / Day) and HWY 332 (21,600 Cars / Day) in a dense retail area of Lake Jackson.
Nolan Ryan Expressway (Hwy 288) is an arterial north-south highway in the region; it begins in Houston and provides direct access to the site and surrounding
area. This geographic advantage has spurred large scale retail development in the immediate trade area. The subject property is a high visibility pad site to Brazos
Mall (682,831 SF) and is surrounded by a variety of big box retailers. Brazos Mall features over 73 tenants and is anchored by Dillard’s, JC Penny, Sears, and
Starplex Cinemas. National credit tenants within 1-mile of the subject property include Walmart, Target, Home Depot, Best Buy, Office Depot, PetSmart, Petco,
Office Max, Big Lots!, Kohl’s, Ross, Zales, Hobby Lobby, Dollar General, Academy Sports & Outdoors, McDonald’s, Chick-fil-A, Burger King, Whataburger, Texas
Roadhouse, Popeye’s, Cici’s Pizza, Fuddruckers, Sonic, and many more. Lake Jackson is 50 miles south of Houston, TX.
Table of contents | Disclaimer
Starbucks
104 S HWY 288, Lake Jackson, TX – HOUSTON Metro
PAGE 1:
COVER
Disclaimer
PAGE 2:
TABLE OF CONTENTS | DISCLAIMER
PAGE 3:
INVESTMENT | TENANT OVERVIEW
PAGE 4:
PROPERTY PHOTOS
PAGE 5:
AERIAL PHOTO
PAGE 6:
SITE PLAN
PAGE 7:
LOCATION OVERVIEW
PAGE 8-9:
BRAZORIA COUNTY DEVELOPMENT OVERVIEW
PAGE 10-11:
LOCATION MAPS
PAGE 12:
DEMOGRAPHICS
EXP Realty Advisors, Inc. (“Agent”) has been engaged as an agent for the sale of the
property located at Highway 288 & Oyster Creek, Lake Jackson, TX by the owner of the
Property (“Seller”). The Property is being offered for sale in an “as-is, where-is” condition
and Seller and Agent make no representations or warranties as to the accuracy of the
information contained in this Offering Memorandum. The enclosed materials include highly
confidential information and are being furnished solely for the purpose of review by
prospective purchasers of the interest described herein. The enclosed materials are being
provided solely to facilitate the prospective investor’s own due diligence for which it shall be
fully and solely responsible. The material contained herein is based on information and
sources deemed to be reliable, but no representation or warranty, express or implied, is
being made by Agent or Seller or any of their respective representatives, affiliates, officers,
employees, shareholders, partners and directors, as to the accuracy or completeness of the
information contained herein. Summaries contained herein of any legal or other documents
are not intended to be comprehensive statements of the terms of such documents, but
rather only outlines of some of the principal provisions contained therein. Neither the Agent
nor the Seller shall have any liability whatsoever for the accuracy or completeness of the
information contained herein or any other written or oral communication or information
transmitted or made available or any action taken or decision made by the recipient with
respect to the Property. Interested parties are to make their own investigations, projections
and conclusions without reliance upon the material contained herein. Seller reserves the
right, at its sole and absolute discretion, to withdraw the Property from being marketed for
sale at any time and for any reason. Seller and Agent each expressly reserves the right, at
their sole and absolute discretion, to reject any and all expressions of interest or offers
regarding the Property and/or to terminate discussions with any entity at any time, with or
without notice. This offering is made subject to omissions, correction of errors, change of
price or other terms, prior sale or withdrawal from the market without notice. Agent is not
authorized to make any representations or agreements on behalf of Seller. Seller shall
have no legal commitment or obligation to any interested party reviewing the enclosed
materials, performing additional investigation and/or making an offer to purchase the
Property unless and until a binding written agreement for the purchase of the Property has
been fully executed, delivered, and approved by Seller and any conditions to Seller’s
obligations hereunder have been satisfied or waived. By taking possession of and
reviewing the information contained herein, the recipient agrees that (a) the enclosed
materials and their contents are of a highly confidential nature and will be held and treated
in the strictest confidence and shall be returned to Agent or Seller promptly upon request;
and (b) the recipient shall not contact employees or tenants of the Property directly or
indirectly regarding any aspect of the enclosed materials or the Property without the prior
written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be
copied or otherwise reproduced without the prior written authorization of Seller and Agent.
SUBJECT PROPERTY
Investment overview
Starbucks
104 S HWY 288, Lake Jackson, TX – HOUSTON Metro
Lease overview
Initial Lease Term:
10-Years, Plus 4, 5-Year Options to Renew
Rent Commencement:
April 2014
Lease Expiration:
April 2024
Lease Type:
Corporate Net Lease
Rent Increases:
10% Every 5-Yrs In Base Term & Options
Year 1-5 Annual Rent (Current):
$90,753
Year 6-10 Annual Rent:
$98,450
Fee Simple Interest
Year 11-15 Annual Rent (Option 1):
$108,295
100%
Year 16-20 Annual Rent (Option 2):
$119,124
Year 21-25 Annual Rent (Option 3):
$131,036
Year 26-30 Annual Rent (Option 4):
$144,140
PRICE:
$1,730,000
NET OPERATING INCOME:
$90,753
BUILDING AREA:
2,028+ Square Feet
LAND AREA:
0.5+ Acres
YEAR BUILT:
2014
LANDLORD RESPONSIBILITY:
Includes Roof & Structure
OWNERSHIP:
OCCUPANCY:
Tenant overview
Starbucks Corporation, a Washington corporation
STARBUCKS | http://www.starbucks.com
Starbucks Corporation is an international coffee and coffeehouse chain based in Seattle, Washington, United States. Starbucks is the largest coffeehouse
company in the world, with 18,066 stores globally, including around 11,000 in the United States, followed by nearly 1,000 in Canada and more than 800 in Japan.
Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, snacks, and items such as mugs and coffee beans. Through the
Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company’s products are seasonal or
specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores.
Starbucks retail stores are located in high-traffic, high-visibility locations. Its stores are located in or near a variety of settings, including downtown and suburban
retail centers, office buildings and university campuses.
SUBJECT
The Company sells whole bean and ground coffees, including the Starbucks and Seattle’s Best Coffee brands, as well as a selection
of PROPERTY
premium Tazo teas, VIA
PANDA
EXPRESShotels,
EXPANSION
and other related products, to institutional foodservice companies that service business and industry, education, healthcare,PRIOR
office TO
coffee
distributors,
restaurants, airlines and other retailers. At September 27, 2009, the Company’s total foodservice operations had over 21,000 accounts primarily in the United
States.
From Starbucks’ founding in later forms in Seattle as a local coffee bean roaster and retailer, the company has expanded rapidly. In the 1990s, Starbucks was
opening a new store every workday, a pace that continued into the 2000s. The first store outside the United States or Canada opened in the mid-’90s, and
overseas stores now constitute almost one third of Starbucks’ stores. In fiscal 2012, the company reported revenues of $13.3 billion and net income of $1.38
billion.
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PROPERTY PHOTOS
Starbucks
104 S HWY 288, Lake Jackson, TX – HOUSTON Metro
4
Aerial PHOTO
Starbucks
104 S HWY 288, Lake Jackson, TX – HOUSTON Metro
Jerry’s
Food King
5
SITE PLAN
Starbucks
104 S HWY 288, Lake Jackson, TX – HOUSTON Metro
6
LOCATION OVERVIEW
Starbucks
104 S HWY 288, Lake Jackson, TX – HOUSTON Metro
IMMEDIATE TRADE AREA
HOUSTON-SUGAR LAND-BAYTOWN METROPOLITAN AREA
Starbucks is strategically located along Highway 288 (42,200 Cars / Day) and
Hwy 332 (21,600 Cars / Day) in a dense retail area of Lake Jackson. Nolan
Ryan Expressway (Hwy 288) is an arterial north-south highway in the region; it
begins in Houston and provides direct access to the site and surrounding area.
Hwy 332, known as “SH 332”, is a 15-mile, northwest-southeast thoroughfare
in the region. SH 332 runs from Surfside Beach, TX on the Gulf of Mexico,
inland to Brazoria, TX. South of the subject property, SH 332 merges into
Nolan Ryan Expressway. This location positions the subject property to capture
significant traffic volumes from a wide variety of areas in Lake Jackson.
The Houston-Sugar Land-Baytown Metropolitan Statistical Area (MSA),
colloquially known as Greater Houston, is the 6th largest in the United States
with a population of 5,946,800. From 2000 to 2030, the metropolitan area is
projected by Woods & Poole Economics to rank fifth in the nation in population
growth—adding 2.66 million people.
This geographic advantage has spurred large scale retail development in the
immediate trade area. The subject property is a high visibility pad site to Brazos
Mall (682,831 SF) and is surrounded by a variety of big box retailers. Brazos
Mall features over 73 tenants and is anchored by Dillard’s, JC Penny, Sears,
and Starplex Cinemas.
National credit tenants within 1-mile of the subject property include Walmart,
Target, Home Depot, Best Buy, Office Depot, PetSmart, Petco, Office Max, Big
Lots!, Kohl’s, Ross, Zales, Hobby Lobby, Dollar General, Enterprise, Aaron’s,
Academy Sports & Outdoors, Payless Shoe Source, Hastings, Discount Tire,
Tractor Supply Co., McDonald’s, Chick-fil-A, Burger King, Whataburger, Texas
Roadhouse, Popeye’s, Cici’s Pizza, Fuddruckers, Sonic, and many more.
LAKE JACKSON, TX
Lake Jackson is a city in Brazoria County, Texas within the Houston–Sugar
Land–Baytown metropolitan area, located 50 miles south of Houston, 45 miles
southwest of Galveston, and 8 miles north of the Gulf of Mexico. As of a 2010
U.S. Census Bureau estimate, the city population was 26,849.
Lake Jackson is situated in the heart of the retail center of southern Brazoria
County. It is in close proximity to the world's largest petrochemical complex and
related industries; major components of this complex include Dow Chemical
Company, BASF Corporation, Phillips Petroleum, and many more. In early
March, Dow Chemical Co. announced plans to build a massive new research
and development campus in Lake Jackson. The 900,000-square-foot, fivebuilding campus, will house 2,000 employees and is expected to be completed
by 2016. This state of the art administrative facility will support various
businesses, R&D and manufacturing operations across the Gulf Coast, and is
projected to expand the downtown area with more retail and restaurant
development due to the increased workforce. Lake Jackson’s proximity to
Houston, along with other local resources and facilities, have continued to fuel
and promote growth in the area.
In 2013, Houston was placed in Forbes’ “Top 5 Best Big Cities for Jobs”. The
Greater Houston Gross Metropolitan Product (GMP) in 2014 is projected to be
$488.7 billion, up 5.4 percent from 2013 GMP of 463.7 billion. Between 2012
and 2013, Houston’s GMP increased 3.1 percent. Only 28 nations other than
the United States have a GDP exceeding the Greater Houston GMP. Mining,
which in Houston is almost entirely oil and gas exploration and production,
accounts for 11 percent of Greater Houston's GMP.
Houston is second to New York City in Fortune 500 headquarters. Galveston
Bay and the Buffalo Bayou together form one of the most important shipping
hubs in the world, and the Port of Houston, the Port of Texas City, and the Port
of Galveston are all major seaports located in Greater Houston. The area is
one of the leading centers of the energy industry, particularly petroleum
processing, and many companies have large operations in this region. The
MSA comprises the largest petrochemical manufacturing area in the world. The
area is also the world's leading center for building oilfield equipment, and is a
major center of biomedical research, aeronautics, and high-technology.
Because of these economic trades, many residents have moved to the
Houston area from other U.S. states, as well as hundreds of countries
worldwide.
Houston is home to the Texas Medical Center—the largest medical center in
the world—several universities (including Rice University, Texas Southern
University, and The University of Houston), and two of the largest systems of
higher learning in the United States (The Houston and Lone Star Community
College systems). The University of Houston’s annual impact on the Houstonarea's economy alone equates to that of a major corporation: $1.1 billion in new
funds attracted annually to the Houston area, $3.13 billion in total economic
benefit, and 24,000 local jobs generated.
Recent accolades include:
 The Brookings Institution ranked Houston as the fastest growing economy
in North America; Houston posted 118,200 new jobs in 2012 and added
more than 87,600 new jobs in 2013.
 The Association of Foreign Investors in Real Estate (“AFIRE”), recently
named Houston the 5th best city in the world for commercial real estate
investment.
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BRAZORIA COUNTY DEVELOPMENT OVERIVEW
Starbucks
104 S HWY 288, Lake Jackson, TX – HOUSTON Metro
Dow Chemicals is building a fivebuilding, 900,000-square-foot
R&D center in Lake Jackson for
2,000 Employees.
“Boom times on the bay”
It took Brazoria County 150 years to reach a value of $21 billion, a number which is expected to double in the next 10 years due to an influx of
development spurred by shale plays.
Right now the taxable value of Brazoria County is around $21 billion, said Robert Worley, president and CEO of the Economic Development Alliance for Brazoria County. In
the next 10 years, there is expected to be $21 billion of industrial investment in Brazoria County, he said, and almost all because of shale gas. “It took us 150 years to get to
a value of $21 billion, and we are going to double the taxable value of the county in the next 10 years,” he said. “And that’s only direct capital investment – not retail
shopping centers, new roadway, etc. The trailing investments for these projects will go on for the next 15 years…”. As highlighted on the next page, a variety of
developments taking place in the Gulf Coast area have spurred monumental growth in Brazoria County.
1. Ryan, Molly. "Boom times on the Bay." Houston Business Journal [Houston] 21 Mar. 2014, Centerpiece sec.: 18. Print.
$9.4B
6,800+
955+
4,485+
Amount of planned industrial
investment between 2011
and 2013 in Brazoria County
Number of construction workers
estimated to be needed in Brazoria
County from industrial investments
between 2011 and 2013
Number of estimated new direct
company jobs to be created in Brazoria
County from the industrial investments
between 2011 and 2013
Number of estimated direct and indirect
jobs created in Brazoria County from
the industrial investments between
2011 and 2013
Sources: American Chemistry Council and the Economic Development Alliance for Brazoria County
8
BRAZORIA COUNTY DEVELOPMENT OVERIVEW
Starbucks
104 S HWY 288, Lake Jackson, TX – HOUSTON Metro
6. DOW’S CHEMICAL EXPANSION
Dow is also planning an extensive chemical
expansion at its immense Freeport complex as
part of a $4 billion Gulf Coast expansion
project. In Freeport, the expansion includes
adding two performance plastics expansions, a
propylene production facility and a new
ethylene unit. Between 400 and 500
permanent new jobs are expected to be
created when the project is complete in 2017.
Also Dow’s joint-venture with Japan-based
Mitsui plans to build a chlor-alkali plant in
Freeport. According to Dow, the company
currently has 3,000 to 4,000 construction
contractors at its Freeport site.
7. NEW GROCER
LAKE
JACKSON
The Representatives for the San Antoniobased grocer H-E-B confirmed plans are
underway for a new store in Lake Jackson. It
is slated to open in Spring 2015 and will be at
the corner of Oyster Creek and Oak drives.
8. BASF NEW PLANT
1. TENARIS STEEL PLANT
Luxembourg-based Tenaris SA (NYSE:
TS), a steel pipe firm with its U.S.
headquarters in Houston, is building a $1.5
billion steel pipe manufacturing facility in
Bay City, TX. The plant will create about
600 permanent jobs and be complete by
2016.
2A & 2B. PHILLIPS 66 NEW PLANT
Phillips 66 (NYSE: PSX) is investing $3
billion in two Brazoria County projects which
are expected to create 50 full-time jobs as
well as more than 1,000 construction jobs.
The Houston-based company is building a
100,000-barrel-per-day fractionator near its
refinery in Sweeny, TX, to supply natural
gas liquids to the petrochemical industry
and heating markets. It is expected to start
up in the third quarter of 2015. It is also
building a $1 billion liquefied petroleum gas
export terminal – its first ever – in Freeport,
Texas, to tap international markets for their
propane and butane needs. Initial capacity
will be 4.4 million barrels per months, and
startup is expected in mid-2016.
3. CHEVRON PHILLIPS EXPANSION
The woodland-based Chevron Phillips
Chemical Company LP plans two new
polyethylene units, as well the expansion of
its ethylene production capacity in Old
Ocean, Texas. The expansions are part of
the company’s $6 billion Gulf Coast
Petrochemicals project, which is complete in
2017 and will create 10,000 engineering and
construction jobs.
4. NEW COMMUNITY
Dallas-based Hillwood Communities will
break ground this spring on its first Houstonarea master-planned community, named
Pomona, near Highway 288 in Manvel, about
The 20 mils south of downtown Houston. The
$700 million development, with Houstonbased McGuyer Homebuilders Inc., will sit on
1,00 acres and include 2,100 single-family
homes ranging in price from $250,000 to
$400,000. It will include a new elementary
school and possibly a new junior high.
5. DOW’S NEW R&D CENTER
The Dow Chemical Co. (NYSE: DOW) in
early March revealed plans to build a
massive research and development center in
Lake Jackson, Texas. The five-building
Texas Innovation Center will house about
2,000 of the Michigan-based company’s
employees. The five buildings, which total
about 900,000 square feet, will be on a 50acre site. In addition to two R&D buildings,
there will be an administration building, a
visitor center, and an employee amenities
center. Houston-based Core Real Estate LLC
will have completed the project in 2016.
BASF SE, the German chemical giant, is
building a new production plant for emulsion
polymers in Freeport. The $90 million
investment is expected to create 20 permanent
jobs as well as 200 construction jobs at its
peak. The project is expected to be complete
this summer.
9. FREEPORT LNG EXPORT FACILITY
B Houston-based Freeport LNG Expansion LP
plans to spend about $13 billion to construct a
liquefied natural gas export facility in Freeport
that would employ 3,500 construction workers
and create 160 permanent jobs. Freeport LNG
received approval to export LNG, but is waiting
for authorization to construct and operate its
liquidation facility. The authorization is
expected to come through in the third quarter,
and, once this happens, Freeport LNG can
begin its four-five year construction process.
1. Ryan, Molly. "Boom times on the Bay." Houston
Business Journal [Houston] 21 Mar. 2014, Centerpiece
sec.: 18. Print.
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LOCATION MAP
Starbucks
104 S HWY 288, Lake Jackson, TX – HOUSTON Metro
10
LOCATION MAP
Starbucks
104 S HWY 288, Lake Jackson, TX – HOUSTON Metro
11
DEMOGRAPHICS
Starbucks
104 S HWY 288, Lake Jackson, TX – HOUSTON Metro
Demographic snapshot
Radius
1 Mile
3 Mile
5 Mile
2019 Projection
7,004
35,497
54,421
2014 Estimate
6,576
33,167
50,753
2010 Census
6,464
32,065
48,635
Growth 2014-2019
6.51%
7.03%
7.23%
Growth 2010-2014
1.73%
3.44%
4.35%
2019 Projection
2,848
13,508
19,845
2014 Estimate
2,675
12,622
18,483
2010 Census
2,639
12,244
17,737
Growth 2014 - 2019
6.47%
7.02%
7.37%
Growth 2010 - 2014
-0.89%
3.16%
3.11%
Owner Occupied
1,399
8,664
12,300
Renter Occupied
1,275
3,957
6,183
2014 Avg Household Income
$69,920
$84,265
$75,904
2014 Med Household Income
$56,839
$69,568
$59,627
<$25,000
403
1,572
3,179
$25,000 - $50,000
751
2,889
4,486
$50,000 - $75,000
531
2,257
3,340
$75,000 - $100,000
503
2,267
3,034
$100,000 - $125,000
187
1,588
2,013
$125,000 - $150,000
115
788
913
$150,000 - $200,000
123
601
745
63
660
774
Population:
Households:
Downtown Houston, Texas
2014 Households by Household Inc:
$200,000+
Brazos Mall, Lake Jackson, TX
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