Brochure

Representative Photo
Exclusive OFFERING | $1,655,000
Starbucks
4317 Expressway 83, McAllen, TX
214.915.8890
JOE CAPUTO
[email protected]
BOB MOORHEAD
[email protected]
RUSSELL SMITH
[email protected]
property. New 2,045+ SF building on 0.62+ acre site | Highly Visible 80-foot Pylon Sign.
tenant. Starbucks Corporation | 2013 financials: $14.9 billion in sales and $2.5 billion in revenue | Over 19,000 locations worldwide.
lease structure. New, 10-year, corporate net lease.
location. Starbucks is located along Hwy 83 (120,000 Cars / Day) and Bensten Road just southwest of downtown McAllen. Along with great accessibility and
visibility, the site is in a high volume retail trade area. The subject property is located .8 miles east of Sharyland Towne Crossing, North Sharyland Crossing, and
Market at Sharyland Place shopping centers. These developments are anchored by HEB, Ross, TJ MAXX, Target, Walmart, Home Depot, Petco, Kohl’s, Cinemark
Theaters, Office Depot, and include Chili’s, McDonald’s, Chick-fil-A, Wendy’s, Subway, RadioShack, Wing Stop, Freebirds, Lane Bryant, and many others. McAllen
Convention Center (174,000 SF) is conveniently located 1-mile east of the site and features pad sites with national credit tenants such as Best Buy, Bealls, ULTA,
Sports Authority, DSW, P.F. Chang’s, Longhorn Steakhouse, Buffalo Wild Wings, BJ’s Brewhouse, and others, along Hwy 83. New mixed-use commercial retail
developments in the immediate vicinity include the master-planned “83 Citrus Grove” (30-acres) and “The Harbour” (15-acres). McAllen is located in the Texas Rio
Grande Valley, 3.5-hours south of San Antonio.
Table of contents | Disclaimer
Starbucks
4317 Expressway 83, McAllen, TX
Disclaimer
PAGE 1:
COVER
PAGE 2:
TABLE OF CONTENTS | DISCLAIMER
PAGE 3:
INVESTMENT | TENANT | LEASE OVERVIEW
PAGE 4:
AERIAL PHOTO
PAGE 5:
83 CITRUS GROVE SITE PLAN
PAGE 6:
SITE PLAN
PAGE 7:
LOCATION OVERVIEW
PAGE 8-9:
LOCATION MAPS
PAGE 10:
DEMOGRAPHICS
Representative Photo
EXP Realty Advisors, Inc. (“Agent”) has been engaged as an agent for the sale of the
property located at 4317 Expressway 83, McAllen, TX 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.
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Investment overview
Starbucks
4317 Expressway 83, McAllen, TX
Lease overview
PRICE:
$1,655,000
Initial Lease Term:
10-Years, Plus 4, 5-Year Options to Renew
CAP RATE:
5.50%
Rent Commencement:
September 2014
NET OPERATING INCOME:
$91,051
Lease Expiration:
September 2024
BUILDING AREA:
2,045+ Square Feet
Lease Type:
Corporate Net Lease
LAND AREA:
0.62+ Acres
Year 1-5 Annual Rent (Current):
$91,051
YEAR BUILT:
2014
Year 6-10 Annual Rent:
$99,916
LANDLORD RESPONSIBILITY:
Includes Roof & Structure
Year 11-15 Annual Rent (Option 1):
$107,268
OWNERSHIP:
Fee Simple Interest
Year 16-20 Annual Rent (Option 2):
$117,994
OCCUPANCY:
100%
Year 21-25 Annual Rent (Option 3):
$129,794
Year 26-30 Annual Rent (Option 4):
$142,773
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 over 19,000 stores globally, including around 13,000 in the United States, followed by nearly 1,000 in Canada and more than 900 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 2013, the company reported revenues of $14.9 billion and net income of $2.5 billion.
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AERIAL PHOTO
Starbucks
4317 Expressway 83, McAllen, TX
Another Closet
Self Storage
Romero D. Martinez
Elementary School
Westside
Park
McAllen Convention Center
(174,000 SF)
4
83 Citrus Grove Site PLan
Starbucks
4317 Expressway 83, McAllen, TX
5
Site plan
Starbucks
4317 Expressway 83, McAllen, TX
6
Location overview
Starbucks
4317 Expressway 83, McAllen, TX
IMMEDIATE TRADE AREA
Starbucks is located along Hwy 83 (120,000 Cars / Day) and Bensten Road just
southwest of downtown McAllen. Along with great accessibility and visibility, the site
is in a high volume retail trade area.
These attributes have attracted numerous national credit retailers to the immediate
trade area. Since Hwy 83 serves as an arterial east-west thoroughfare to McAllen,
the surrounding area has seen dense retail development along Hwy 83. The subject
property is located .8 miles east of Sharyland Towne Crossing, North Sharyland
Crossing, and Market at Sharyland Place shopping centers. These developments
are anchored by HEB, Ross, TJ MAXX, Target, Walmart, Home Depot, Petco,
Kohl's, Cinemark Theaters, Office Depot, and include Chili’s, McDonald’s, Chick-filA, Wendy’s, Subway, RadioShack, Wing Stop, Freebirds, Lane Bryant, and many
others. McAllen Convention Center (174,000 SF) is conveniently located 1-mile east
of the site and features pad sites with national credit tenants such as Best Buy,
Bealls, ULTA, Sports Authority, DSW, P.F. Chang’s, Longhorn Steakhouse, Buffalo
Wild Wings, BJ’s Brewhouse, and others, along Hwy 83.
Immediately west of the site across Bensten Road, is a scheduled 19-acre, mixeduse, hotel & retail development called “The Harbour”. The development will be
anchored by a man-made lake and amphitheater. Major amenities include a fourstory hotel, 22-lane bowling alley and restaurants surrounding the lake. The site
itself is part of the master-planned 30-acre “83 Citrus Grove” mixed-use commercial
plaza. Amenities will include the “Imagine It” entertainment center (featuring the
latest technologies) and various retail franchises such as Tilted Kilt, The Rodizio
Grill, The Brazilian Steakhouse, and many others. Phase I of the project, a 60,000
sqft commercial plaza, named “83 Citrus Plaza”, has already sold 19 suites to
investors and still has some available for lease.
The site also benefits from the recent construction of the mixed use 495 Commerce
Center business park – 6 miles northeast of the site. The business park has
enhanced the trade area’s status as a major employment center. 495 Commerce
Center is a 110 acre, master planned that contains the only class A office space in
Texas south of San Antonio. Along with these credentials, the trade area benefits
further from the growing residential and substantial student population nearby. The
population within a 3-mile radius is projected to grow by 8.13% over the next 5-year
period ending in 2019. The main campus of South Texas College (31,000 Students)
is located 3 miles north of the site. With a staff of 1,600, this institution is the 9th
largest employer in McAllen.
McALLEN, TX / HIDALGO COUNTY
McAllen is the 20th most populous city in Texas with a population of 134,719 and the
largest city in Hidalgo County. The latter half of the 20th century saw steady growth,
which accelerated during the 1980s, leading to an economic and population boom
in the 1990s and 2000s. The North American Free Trade Association led to a boom
in international trade and cross-border commerce with Mexico.
Although McAllen's total population is 20th among Texas cities, it ranks 12th in
overall retail sales and 3rd in the state in total retail sales both per household and
per capita.
Hidalgo County exhibited strong economic growth in the early to late 2000s. Gross
domestic product in Hidalgo County grew at an average annual rate of 8.2% from
2001 through 2008, to $13.8 billion dollars; 1.5 times faster than the national
economy.
RIO GRANDE VALLEY
The Rio Grande Valley is located in the southernmost tip of Texas and is made up
of 4 counties: Starr County, Hidalgo County, Willacy County, and Cameron County.
This area is anchored by the cities of Brownsville, McAllen, Edinburg, Pharr and
Mission. These 4 counties where these cities area located have a combined
population of 1,138,872 and is growing quickly
Hidalgo County, which
encompasses the McAllen-Edinburg-Mission Metropolitan Statistical Area had a
population increase of 36.05% placing it as the 11th fastest growing Metropolitan
Statistical Area from 2000 to 2010 in the United States.
The McAllen-Edinburg-Mission MSA is also part of the transnational metropolitan
area (TMA) of Reynosa–McAllen, known unofficially as “RioPlex” or “BorderPlex”.
The transnational statistical area is represented by 40 of America’s top 100 retailers.
More than 80 of Fortune 500’s global manufacturers have operations in the MSA.
Included among them are: AT&T, Bissell, Black & Decker, BMW, Delco, Drexel,
Meyer, Eaton, Emerson, GE, Johnson Controls, Nokia, R.R. Donnelley & Sons,
Panasonic, Siemens, Sony, Symbol, TRW, West Bend and Whirlpool. The TMA is
the retail center of South Texas and Northern Mexico, drawing from a consumer
base of over 8.2 million people.
The Rio Grande Valley and the rest of South Texas are among the most dynamic
regions of Texas. In a recent economic report by the State Comptroller the
economic outlook of the region was rated as excellent with a job creation expected
to outpace that of the rest of the state through 2012. This sector has become the
driving force in the local economy, which has grown 138% over the last decade to
over $3.58 billion and employing 27% of the local workforce.
MSA / TMA ACCOLADES:
• Fastest Growing Metro Area in the Nation –Fiscal Times, 2012.
• No. 1 Best Housing Market in the Nation –Wall Street Journal, 2012.
• No. 4 Best Mid-Sized Cities for Jobs –Forbes, 2011.
• Top 100 Location for Doing Business –Area Development Magazine, 2011
• One of the Top Ten Best Areas for Recession Recovery -Forbes, 2009.
• One of the Best Places to Launch a Small Business –CNN Money, 2009.
• MSA Ranked 1st in High Technology Sector Growth in 2008.
• MSA has the 3rd Lowest Cost of Living in the US.
• Mexican Nationals Account for 20% to 35% of Border Exported Retail Sales.
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Location map
Starbucks
4317 Expressway 83, McAllen, TX
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Location map
Starbucks
4317 Expressway 83, McAllen, TX
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Demographics
Starbucks
4317 Expressway 83, McAllen, TX
Demographic snapshot
Radius
1 Mile
3 Mile
5 Mile
2019 Projection
6,334
92,701
201,710
2014 Estimate
5,875
85,729
186,108
2010 Census
5,597
80,825
174,040
Growth 2014-2019
7.81%
8.13%
8.38%
Growth 2010-2014
4.97%
6.07%
6.93%
2019 Projection
1,852
28,865
63,567
2014 Estimate
1,728
26,730
58,747
2010 Census
1,683
25,358
55,333
Growth 2014 - 2019
7.18%
7.99%
8.20%
Growth 2010 - 2014
-4.03%
2.18%
3.39%
Owner Occupied
1,047
17,222
36,297
Renter Occupied
681
9,509
22,450
2014 Avg Household Income
$48,630
$55,414
$57,807
2014 Med Household Income
$28,578
$36,101
$38,722
<$25,000
796
10,108
21,049
$25,000 - $50,000
373
7,080
14,766
$50,000 - $75,000
150
3,155
8,232
$75,000 - $100,000
236
2,871
6,289
$100,000 - $125,000
112
1,271
3,230
$125,000 - $150,000
4
638
1,393
$150,000 - $200,000
2
689
1,656
55
918
2,132
Population:
Households:
495 COMMERCE CENTER, McALLEN, TX
2014 Households by Household Inc:
$200,000+
McALLEN-REYNOSA INTERNATIONAL BRIDGE, McALLEN, TX
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