186 Unit Class C+ Multi-Family Offering

186 Unit ● Class C+ ● Multi-Family Offering
KET Enterprises Incorporated I 4295 San Felipe, Suite 355 I Houston, TX 77027 I www.ketent.com
BRIARWOOD 1711 JAMES BOWIE DR, BAYTOWN, TX 77520
APARTMENTS FOR SALE WITH MULTIPLE
MARKET
VALUE ADD COMPONENTS!
PRICE/UNIT:
PRICE/SF:
Units:
186
TERMS:
PRO-FORMA CAP RATE:
Avg Size:
Date Built:
Rentable Sq. Ft.:
#VALUE!
#VALUE!
ALL CASH
0.00%
859
High Value:
#VALUE!
Mid Value:
MARKET
Low Value:
#VALUE!
1970
159,823
Acreage:
7.40
Occupancy:
95%
Class:
C+
For More Information Please
Contact:
Tom Wilkinson
[email protected]
713-355-4646 ext 102
4295 San Felipe, Suite 355
Houston, TX 77027
www.ketent.com
BRIARWOOD 1711 JAMES BOWIE DR, BAYTOWN, TX 77520
INVESTMENT HIGHLIGHTS
Best In Class In Barriers To Entry
Conveniently located in the Houston Metropolitan area, Baytown uses zoning which enables the city to cautiously manage multi-housing
development. Neighboring communities such as Pasadena and Deer Park have zoning regulations as well. These communities, along with
Baytown create a constant demand for multi-family housing, with strong barriers to entry with little new construction.
Plant expansions, the retirement of long-time employees, growth in healthcare and the maritime industry are pushing Baytown to the forefront
as one of the nation’s fastest growing and most prosperous regions.
According to the Community College Times, the demand for healthcare
support paraprofessionals will increase by 30 percent by 2020, as healthcare is
poised to be the largest industry in the Greater Houston area.
Baytown is the largest petrochemical industry in the United States.
Petrochemical facilities in the area are adding capacity, hiring approximately
35,000 employees, to take advantage of the opportunity afforded by new
technologies such as fracking, which allows companies to recover more oil and
gas from fields where drilling was once not economically feasible. Low gas
prices are driving much of this new construction!
EXCELLENT VALUE ADD POTENTIAL TO INCREASE INCOME
Per ADS, Baytown is the fastest growing Houston area rental market, with a 13% annual rent increase over the past six
months. Management reports that over 60% of the residents are renewing at market rents!
Interior upgrades including ceramic tile, faux wood and vinyl plank flooring, costing $3,000/unit receive $100 more per
month than units without upgrades. The exterior will benefit from parking lot work and new paint.
In addition to the jobs above, the Port is doing a $35 billion expansion and will add 100,000 permanent jobs!
The property does not charge for water/sewer, gas, trash removal nor reserved parking. This can bring additional
revenue (estimated at $40/mo for water/sewer; $3/mo for trash, $10/mo for gas, and $10/mo for parking.
BRIARWOOD 1711 JAMES BOWIE DR, BAYTOWN, TX 77520
Baytown
BAYTOWN, TEXAS
As of November 2014, ADS ranked Baytown 5th in performance in the
Houston MSA out of 41 submarkets.
Baytown is a thriving employment area. The average wage of chemical
industry employees is $87,000.
TOP EMPLOYERS
The City of Baytown, Texas is the third largest city in
the Houston Metropolitan Area with approximately 81,000
residents. Located east of Houston, Baytown is only 20 miles
from downtown Houston, within 35 minutes of Houston Hobby
Airport and within 55 minutes of Houston Intercontinental
Airport.
Baytown, Texas
The City is a prosperous industrial community with a vigorous tax base
provided by Bayer Corp, Chevron Phillips and ExxonMobil, some of the world's
largest corporations.These companies aid in providing the foundation for stable
economic conditions.
According to B.J. Simon of the Baytown-West Chambers Economic
Baytown, during the years (2000–2005), experienced more than $210 million
Development Foundation, new construction and expansion projects in
in new commercial development and more than $205 million in new residential
Baytown and Mont Belvieu represent $10 to $13 billion of capital investment
building activity. However, there is minimal new multi-family construction.
that will create nearly 22,000 construction jobs and add 1,100 permanent jobs
over the next decade.
ExxonMobil is Baytown largest employer and taxpayer, and is the largest
petroleum and petrochemical complex in the United States. Bayer Corp is the
largest MaterialScience manufacturing site in North America. Cedar Crossing
Industrial Park is the fifth largest industrial park in the world and houses regional
warehouses and distribution centers for Home Depot and Wal-Mart.
The Texas Enterprise Fund, an incentive tool for projects that aid in job
creation and capital investments is a successful recruiting tool in the Baytown
area. 3 major new projects include Borusan Mannesmann Pipes, Flex Steel
Pipeline Technology and Tapco International. Combined the companies have
provided approximately 1,900 jobs in the area.
PORT OF HOUSTON AERIAL VIEW
The Port of Houston is a 25-mile-long complex of diversified public and private facilities located just a few hours by ship from the Gulf of Mexico. The port is consistently ranked 1st in the United States in foreign waterborne tonnage; 1st in U.S. imports; 1st in U.S. export tonnage and
2nd in the U.S. in total tonnage. It is also the nation’s leading break-bulk port, handling 41 percent of project cargo at Gulf Coast ports. The Port of Houston is made up of the public terminals owned, managed and leased by The Port of Houston Authority, and the 150-plus private
industrial companies along the 52-mile long Houston Ship Channel. Each year, more than 200 million tons of cargo move through The Port of Houston, carried by more than 8,000 vessels and 200,000 barge calls. The Port of Houston has been instrumental in the city of Houston's
development as a center of international trade. It is home to a $15 billion petrochemical complex, the largest in the nation and second largest in the world. As one of the world’s busiest ports, the Port of Houston is a large and vibrant component of the regional economy. A 2012 study by
Martin Associates says ship channel-related businesses contribute 1,026,820 jobs throughout Texas. The Port of Houston's economic activity helps keep Texas the nation's top exporting state. For the past 13 consecutive years, Texas has outpaced the rest of the country in
exports. In 2014, Texas exports totaled more than $289 billion, up from nearly $280 billion in 2013, according to annual trade data from the U.S. Department of Commerce. The state’s exports out-performed overall U.S. exports, which only grew by 2.4 percent to $1.62 trillion in 2014
from $1.58 trillion in 2013.
Source: Port of Houston Authority
BRIARWOOD 1711 JAMES BOWIE DR, BAYTOWN, TX 77520
Physical Information
Number of Units
Avg Unit Size
Net Rentable Area
Land Area (Acres)
Units per Acre
Date Built
Water Meter / Master
Elec Meter
Roof Style
HVAC System
186
859
159,823
7.40
25.14
1970
RUBS
Indiv-E
Pitched
HVAC-Indiv
Financial Information
ASKING PRICE
Price Per Unit
Price Per Sq. Ft.
Stabilized NOI
Future Value Capped @ 7.25%
Less Estimated Rehab/Upgrade
Less Entrepreneurial Profit
Negative Carry
Proforma Value after Rehab
Proposed Loan Parameters
MARKET
N/A
N/A
$1,105,257
$15,244,923
$558,000
$279,000
Est New Loan
Amortization (Months)
Debt Service
Monthly P & I
Interest Rate
Date Due
Est Res for Repl/Unit/Yr
Yield Maintenance
$14,407,923
MODIFIED ACTUALS
INCOME
$8,800,000
I.O.
$440,000
$36,667
5.00%
10 Yrs
$300
Yes
Operating Information
Est Mkt Rent (Jan-16)
$157,750
Estimated Collections
$139,198
Physical Occ (Jan-16)
95%
Est Ins per Unit per Yr
$487
Property Tax Information
Tax Rate (2015)
3.15060
2015 Tax Assessment
$4,818,339
2015 Taxes
$151,807
Est Future Tax Assessment
$8,800,000
Est Future Taxes
$277,253
PRO-FORMA
PRO-FORMA INCOME
Current Street Rent with a 12% Increase based on the $100/unit rent bump with an interior upgrade + 6% for area growth
Estimated Gross Scheduled Income
Estimated Loss to Lease (2% of Total Street Rent)
Estimated Vacancy (4% of Total Street Rent)
Estimated Concessions and Other Rental Losses (4% of Total Street Rent)
Estimated Utilities Income
Estimated Other Income
Estimated Total Rental Income
2,233,740
2,233,740
(44,675)
(89,350)
(89,350)
0
75,654
2,086,020
ESTIMATED TOTAL PRO-FORMA INCOME
3 Mo Avg Income Annualized
EXPENSE
Fixed Expenses
Taxes
Insurance
Total Fixed Expense
Utilities
Electricity
Water & Sewer (includes RUBS reimbursement)
Gas
Trash
2,086,020
$173,835 / Mo
$1,670,378
December 2015 trailing operating statement
December 2015 operating statement
Feb '15 thru Jan '16 Expenses
Estimated Expenses
Fixed Expenses
Estimated Fixed Expenses
$134,865 $725 per Unit
1/16 OS
$277,253 $1,491 per Unit
2015 Tax Rate & Est Future Assessment
$90,612 $487 per Unit
Effecitve 4/15
$90,612
New Rate Effective 4/15 Per Owner
225,476
$487 per Unit
367,864
$1,212 per Unit
Utilities
$20,901
$40,495
$112 per Unit
$218 per Unit
$37,071 $199 per Unit
$37,071
$199 per Unit
$13,074 $70 per Unit
$12,807
$69 per Unit
123,229
$663 per Unit
Other Expenses
$48,360
$260 per Unit
$55,931 $301 per Unit
$74,400
$400 per Unit
$217,236 $1,168 per Unit
$217,236 $1,168 per Unit
$32,817 $176 per Unit
$32,817
3.86%
Water savings has been implemented
111,274
$598 per Unit
Estimated Other Expenses
$53,686 $289 per Unit
$64,394
$1,978 per Unit
Estimated Utilities
$20,901 $112 per Unit
$52,182 $281 per Unit
Total Utilities
Other Expenses
General & Admin & Marketing
Repairs & Maintenance
Labor Costs
Contract Services
Management Fees
Total Other Expense
$186,145 / Mo
$186,145 / Mo
2%
4%
4%
$ / Unit / Yr
$407 / Unit / Yr
$346 per Unit
$73,011
$176 per Unit
3.50%
$393 per Unit
424,065
$2,280 per Unit
445,824
$2,397 per Unit
Total Operating Expense
Reserve for Replacement
772,770
$4,155 per Unit
924,963
$4,973 per Unit
Total Expense
Net Operating Income (Actual Underwriting)
788,384
881,994
1,105,257
ASKING PRICE
MARKET
MARKET
8,800,000
8,800,000
440,000
441,994
440,000
665,257
Proposed Debt
Equity
Estimated Debt Service
Cash Flow
Cash on Cash
15,613
$84 per Unit
$4,239 per Unit
55,800
980,763
$300 per Unit
$5,273 per Unit
NOTES: ACTUALS: Income calculated using owner's 1/16 OS and Expenses calculated using owner's December 2015 trailing operating statement. PRO FORMA: Income is Pro
Forma as Noted. Taxes were calculated using 2015 Tax Rate & Est Future Assessment. Insurance is estimated. Management Fees calculated as 3.5% of Gross Income, Other
expenses are Estimated for the Pro Forma. Other potential upsides include $40/mo potential for water; $10/mo for gas; $10/mo for parking and $3/mo for trash
DISCLAIMER: The information contained herein has been obtained from sources that we deem reliable. We have no reason to doubt the accuracy of the information, but we have not verified it and make no guaranty, warranty or representation about it. It is your resonsibility to independently
confirm its accuracy and completeness. We have not determined whether the property complies with deed restrictions or any city licensing or ordinances including life safety compliance or if the property lies within a flood plain. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH
ITEM OF INCOME OR EXPENSE AND PERFORM OR HAVE PERFORMED ANY INSPECTIONS TO VERIFY POSSIBLE CONTAMINATION BY ASBESTOS, LEAD PAINT, MOLD OR ANY OTHER HAZARDOUS SUBSTANCES. The owner reserves the right to withdraw this listing or change
the price at anytime without notice during the marketing period.
2/10/2016
Briarwood.xlsx
PROPERTY OVERVIEW
BRIARWOOD 1711 JAMES BOWIE DR, BAYTOWN, TX 77520
Keymap: 501V
Construction Quality: C+
PROPERTY INFORMATION
Age:
1970
Elec Meter:
Indiv-E
A/C Type:
HVAC-Indiv
Water:
RUBS
Wiring:
Copper
Roof:
Pitched
Paving:
Concrete
Materials:
Brick/Wood
# of Stories:
2
Parking:
363 spaces
Buildings:
17
Units/Acre:
25.14
Access Gates
Cable Ready
Club House
Laundry Rooms
Mini Blinds
Pool
Bookshelves
Outside Storage
Ceiling Fans
AMENITIES
Park & Ride Nearby
Walk-In Closets
School Bus Pick-up
Shuttle Route
Patios/Balconies
Carports
EXISTING MORTGAGE
Mortgage Balance
Amortization (months)
P&I
Type
Assumable
Monthly Escrow
Origination Date
Due Date
Interest Rate
Yield Maintenance
Transfer Fee
TAXING AUTHORITY - HARRIS COUNTY
ACCT NO: 0410740020006
$1.431890
Goose Creek ISD
$0.417310
Harris County
$0.027360
Harris County Flood Control
$0.015310
Port of Houston Authority
$0.170000
Harris County Hospital District
Harris County Education Dept
$0.005999
$0.260700
Lee Jr College
City of Baytown
$0.822030
2015 Tax Rate
2015 Tax Assessment
$3.150599
$4,818,339
COLLECTIONS
3 Mo Avg
$
139,198
Feb 2015
Mar 2015
Apr 2015
May 2015
June 2015
$
$
$
$
$
132,502
138,407
138,607
137,388
138,859
July 2015
Aug 2015
Sept 2015
Oct 2015
Nov 2015
Dec 2015
Jan 2016
$
$
$
$
$
$
$
140,597
141,096
138,705
134,282
135,736
141,337
140,521
$144,000
12 Mo Avg
$
138,170
9 Mo Avg
$
138,725
6 Mo Avg
$
138,613
$142,000
$140,000
$138,000
$136,000
$134,000
$132,000
$130,000
$128,000
PLEASE DO NOT VISIT THE SITE WITHOUT AN APPOINTMENT MADE THROUGH THE BROKER.
PROPERTY HIGHLIGHTS
The Briarwood Apartments, is a two story, garden-style, apartment community located in the Baytown submarket of Houston. The asset was built in 1970.
Residents enjoy ample amenities which include: mini-blinds, kitchen pantries, ceiling fans, laundry facilities, patios and balconies and walk-in closets. Per Owner,
65% of the flooring has been upgraded to vinyl plank or ceramic. Upgraded units get higher rents (typically $100/month).
Per ADS, the area's most recent quarterly rent increase was 13% annualized! The asset is consistent with a 2015 average rent increase of approximately
12% and a lease renewal rate of approximately 62%. This leads to a lower cap rate on actual and pro forma incomes. Note that the property achieved
record collections for December, 2015!
ExxonMobil is building a multi-billion dollar petrochemical expansion at its Baytown complex, looking to take advantage of the company's increasing supply of
natural gas. The plant should employ 14,000 construction workers until completion and over 300 permanent employees.
Estimated interior upgrades are $3000/unit but not all units need upgrading!
Note that $13 billion in area plant expansions are under way! See the web site: http://www.bayareahoustonmag.com/baytown-is-at-the-epicenter-of-new-growth/
Per owner, the carpet has been replaced with ceramic tile in 45 units and replaced with plank in 35 units. 30 units have been fully upgraded.
Units w/ ceramic tile – $50 upcharge above market rent on efficiency and 1 bedrooms, $75 upcharge on 2 bedrooms, $100 upcharge on 3 bedrooms
Units w/ plank flooring - $50 upcharge above market rent on efficiency and 1 bedrooms, $75 upcharge on 2 bedrooms, $100 upcharge on 3 bedrooms
Fully renovated units– $120 upcharge above market rent on these units regardless of whether they are one, two, or three bedrooms
Unit Mix
BRIARWOOD 1711 JAMES BOWIE DR, BAYTOWN, TX 77520
UNIT MIX DECEMBER 2015 (prices shown are averages for up and downstairs units)
Bed
Baths
No. Units
Sq Ft
Total SqFt
Market Rent
Total Rent
Rent/SF
Efficiency
Efficiency
Efficiency
1 Bed
1 Bed
1 Bed
1 Bed
1 Bed
1 Bed
1 Bed
1 Bed
1 Bed
1 Bed
1 Bed
2 Bed
2 Bed
2 Bed
1 Bath
1 Bath
1 Bath
1 Bath
1 Bath
1 Bath
1 Bath
1 Bath
1 Bath
1 Bath
1 Bath
1 Bath
1 Bath
1 Bath
1 Bath
1 Bath
1 Bath
2
2
2
1
19
2
9
11
5
6
9
8
5
12
5
2
2
450
450
450
620
715
715
715
715
715
715
725
725
725
725
885
885
885
900
900
900
620
13,585
1,430
6,435
7,865
3,575
4,290
6,525
5,800
3,625
8,700
4,425
1,770
1,770
$625
$675
$655
$810
$660
$710
$690
$740
$780
$810
$700
$750
$730
$780
$820
$850
$925
$1,250
$1,350
$1,310
$810
$12,540
$1,420
$6,210
$8,140
$3,900
$4,860
$6,300
$6,000
$3,650
$9,360
$4,100
$1,700
$1,850
$1.39
$1.50
$1.46
$1.31
$0.92
$0.99
$0.97
$1.03
$1.09
$1.13
$0.97
$1.03
$1.01
$1.08
$0.93
$0.96
$1.05
2 Bed
2 Bed
1 Bath
1 Bath
4
4
885
885
3,540
3,540
$940
$970
$3,760
$3,880
$1.06
$1.10
2 Bed
2 Bed
2 Bed
1.5 Bath
1.5 Bath
1.5 Bath
5
6
3
1,003
1,003
1,003
5,015
6,018
3,009
$890
$965
$920
$4,450
$5,790
$2,760
$0.89
$0.96
$0.92
2 Bed
2 Bed
2 Bed
2 Bed
2 Bed
2 Bed
1 Bed
2 Bed
2 Bed
2 Bed
2 Bed
3 Bed
1.5 Bath
1.5 Bath
1.5 Bath
1.5 Bath
1.5 Bath
1.5 Bath
1 Bath
2 Bath
2 Bath
2 Bath
2 Bath
2 Bath
7
3
4
3
11
5
9
3
1
3
1
2
1,003
1,003
1,003
950
950
950
950
1,048
1,048
1,048
1,048
1,380
7,021
3,009
4,012
2,850
10,450
4,750
8,550
3,144
1,048
3,144
1,048
2,760
$995
$1,010
$1,040
$880
$955
$910
$985
$910
$985
$940
$1,015
$1,065
$6,965
$3,030
$4,160
$2,640
$10,505
$4,550
$8,865
$2,730
$985
$2,820
$1,015
$2,130
$0.99
$1.01
$1.04
$0.93
$1.01
$0.96
$1.04
$0.87
$0.94
$0.90
$0.97
$0.77
3 Bed
2 Bath
2
1,380
2,760
$1,165
$2,330
$0.84
3 Bed
2 Bath
5
1,380
6,900
$1,195
$5,975
$0.87
3 Bed
2 Bath
2
1,380
2,760
$1,185
$2,370
$0.86
3 Bed
2 Bath
1
1,380
1,380
$1,290
$1,290
$0.93
186
859
Average
Sq. Ft.
159,823
Total
Sq. Ft.
$848
Average
Rent/Unit
$157,750
Total
Rent
$0.99
Average
Rent/ SF
TOTALS AND AVERAGES
Total Units
*Note Market Rents do not iclude charges for water.
BRIARWOOD 1711 JAMES BOWIE DR, BAYTOWN, TX 77520
Unit Mix
8%
8%
16%
5%
3%
60%
Efficiency
1 Bed-1 Bath
2 Bed-1 Bath
2 Bed-1.5 Bath
2 Bed-2 Bath
3 Bed-2 Bath
Community Amenities
Apartment Amenities
State-Of-The-Art Fitness Center
Washer/Dryer Connections
Beautiful Landscaping with Historic Trees
All Electric Kitchen
Two On-site Laundry Facilities
Cable and Satellite Ready
Two Sparkling Swimming Pools
Vertical Blinds
Business Center
Carpeted and Ceramic Tile Floors
Cable and/or Satellite Available
Ceiling Fans with Light Fixtures
Children's Play Area
Central Air/Heating
Water, Sewer, Trash and Gas Included
Den/Study
Part Time Courtesy Patrol
Dishwasher
Corporate Housing Available
Faux Wood Plank Flooring
Easy Access to Highway 225 & 146 and I-10
Mini Blinds
Easy Access to Public Transportation
Pantry Areas
Garden Style 1, 2 and 3 Bedroom Apartments
Private Balconies or Patios
Guest Parking
Refrigerator
On-call/On site Maintenance
Some Paid Utilities - Water, Sewer, Trash and Gas
Picnic Areas with Barbecue Pits Throughout
Spacious Walk-in Closets
BRIARWOOD 1711 JAMES BOWIE DR, BAYTOWN, TX 77520
1 BR- 1 BA
715 sq.ft
Efficiency
450 sq.ft
2 BR- 1 BA
885 sq.ft
1 BR- 1 BA
725 sq.ft
2 BR- 1.5 BA
950 sq.ft
3 BR- 2 BA
1,380 sq.ft
2 BR- 1.5 BA
1,003 sq.ft
BRIARWOOD 1711 JAMES BOWIE DR, BAYTOWN, TX 77520
DEMOGRAPHICS
APARTMENT DATA SERVICES SUMMARY - BAYTOWN SUBMARKET
# of
Communities
# of Units
Unit Mix
Size (sf)
Effective Price
$/mo
Effective
Rate
Current
Occupancy
Change in Occupancy
Dec '14
All Floorplans
Subject
Comps
Submarket
1
24
52
184
4440
9397
-
860
825
847
841
711
814
97.8
86.2
96.1
93.0%
93.1%
93.8%
-3.3 points
2.8 points
1.2 points
Efficiencies
Subject
Comps
Submarket
1
5
7
6
41
109
3%
1%
1%
450
462
494
658
465
532
146.2
1-Bedrooms
Subject
Comps
Submarket
1
23
49
86
47%
1877
4015
42%
43%
719
635
668
720
607
715
100.1
95.6
107.0
2-Bedrooms
Subject
Comps
Submarket
1
24
52
80
43%
2074
4213
47%
45%
965
927
942
939
762
870
97.3
82.2
92.4
3-Bedrooms
Subject
Comps
Submarket
1
18
39
12
442
1034
7%
10%
11%
1380
1185
1190
1140
922
1001
82.6
77.8
84.1
4-Bedrooms
Subject
Comps
1
-
-
6
0%
941
1198
127.3
100.6
107.7
-
*The submarket statistics above for units with more than 3 bedrooms are not displayed but are included in the All Floorplans s ection.
*The table above summarizes the results of the ADS Report for the 24 Comps communities including the Subject community . In addition, the 52 communities of the SubMkt (Baytown) are included to expand performance comparisons. The
table emphasizes the effective price/rate. It is grouped by floorplan type for easy comparisons between each market segment. When applicable, the effective price/rate is adjusted for concessions and utilities.
Note: For the purposes of this report the Subject community is included in the Comps communities.
PROPERTY LOCATION
BRIARWOOD 1711 JAMES BOWIE DR, BAYTOWN, TX 77520
From Downtown, I-10 E towards Beaumont. Merge
onto the TX 330 Spur. Take the TX 146 N exit.
Merge onto Decker Dr. Make a left onto S Lanier
Dr. Turn right on Main St and left on Ward Rd.
Make a left on N Alexander Dr. Make right onto
James Bowie Dr. The property is on the right.
DIRECTIONS TO PROPERTY:
Turning Basin
Terminal
Gulf Equities
Beichhold
G.B. Bio Sciences
Atofina Chemicals
Port at Green Bayou
Merisol
Greens Port Industrial
Park
Texas Olefins
Enichem
Ashland Chemical
Phone Poulenc
Texas Eastern
Advanced Aeromatics
Albemarle Ethyl
BP Chemical
MEMC
Houston Raceway Park
KTN
Care Terminal
Fornax
Bayer
Corp.
Woodhouse
Terminal
Bayer Corp.
Booth
Yard
Baytown Refinery
4,300 Employees
J. Jennings Investments
Creech
Distribution Center
SNF FloMin
Cedar Crossing Industrial Park
Brady
Island
Manchester
Yard
Texas Petro
Chemical
Lyondell
Citgo
Pasadena
Refinery
Global Octanes
Clean Harbors Environmental
Degussa
Lubrizol
Rohn & Haas
Distribution Center
Millennium
Linde Air Products
Gulbrandsen
Sunoco Chemicals
Azko Nobel
BP Solvay
Atofina Petrochemicals
Metton
Barbours Cut Terminal
Jindal Steel
Clark Dietrich Bldg
Systems
Samson Controls
Bailey Steel
Union Pacific Railroad
Bayport Terminal
When 180 mile State Highway 99, also known as the Grand
Parkway , is complete, it will be the longest beltway in the
U.S., and the third (outer) loop within Houston-The
Woodlands-Sugarland metropolitan area, with Interstate
610 being the first (inner) loop, and Beltway 8(Sam Houston
Tollway) being the second (middle) loop.
RENT COMPARABLES
BRIARWOOD 1711 JAMES BOWIE DR, BAYTOWN, TX 77520
E =electricity; W = water; G = gas. Water estimated at $40/mo; Gas at $10/mo. Could also bill $10/mo for reserved parking and $3/mo for trash pickup!
RENT COMPARABLES (December 2015 ADS)
Property Name
1 Lakes at Madera (+EWG)
305 W Baker Rd
2 Willowtree (+EW)
1800 James Bowie St
3 Bluebird (+E)
510 Williams
4 Bay Terrace (+E)
1502 Nolan
5 Greenfield (+EW)
2105 Cedar Bayou Rd
Totals/Averages Comps
Briarwood (+E)
1711 James Bowie
Yr Blt
Occ
#Units
Avg SF
Avg Rent
P/SF
1983
96%
392
734
$789
1.075
1982
97%
100
816
$791
0.969
1965
99%
67
678
$815
1.202
1983
99%
130
785
$840
1.070
1984
99%
104
837
$922
1.101
1979
98%
159
770
$834
1.083
1970
95%
186
859
$848
$0.96
Sub-Market Averages(Baytown)
91%
9,657
841
$687
0.833
Houston Market Avgs
91%
617,391
870
$867
1.003
1
The rents shown here for Briarwood are
"Net Effective Rents" where the street
rents have been reduced by 2.514% to
account for loss to lease.
5
2
4
3
BRIARWOOD
APARTMENTS
SALES COMPARABLES
BRIARWOOD 1711 JAMES BOWIE DR, BAYTOWN, TX 77520
SALES COMPARABLES (Sorted by Price/Sq. Ft.)
Property Name
Date Sold
Price
Sq. Ft.
Price/Unit
Price/SF
Built
Units
Asking
$10,000,000
165,104
$55,556
$60.57
1976
180
8/15
$10,660,000
140,750
$65,000
$75.74
1978
164
2/15
$9,000,000
125,483
$59,603
$71.72
1973
151
5/15
$43,152,000
529,616
$62,000
$81.48
1979
696
6/15
$12,250,000
133,800
$82,215
$91.55
1984
149
Totals/Averages Comps
$17,012,400
218,951
$64,875
$76.21
1978
268
Briarwood
1711 James Bowie
MARKET
159,823
N/A
N/A
1970
186
1 Bridge at Shady Hill
3400 Shady Hill
2 Calder Square
1111 W Main
3 Harbortree South
17700 El Camino Real
4 Sandstone
4201 Fairmont Pkwy
5 The Avery at Deer Park
401 McDermott
1
5
4
BRIARWOOD
APARTMENTS
3
2
BRIARWOOD AERIAL VIEW
BRIARWOOD AREA OVERVIEW
Kindred Hospital
Baytown
James Bowie Dr
James Bowie
Elementary
(State Recognized)
SURVEY
BRIARWOOD 1711 JAMES BOWIE DR, BAYTOWN, TX 77520
AREA DEVELOPMENT
Area Development
Chevron Phillips Chemical Company, Cedar
Bayou,
a Woodlands-based company, built in Baytown, the
world's largest plant, by capacity, for making a key component of
plastic resin: 1-hexene. The plant is capable of producing up to
250,000 metric tons. The company is expanding the Cedar Bayou
Plant in Baytown to provide an additional 100,000 metric tons per
year of capacity.
Construction completion is anticipated in July,
2015 and expects to support up to 600 jobs during the construction
phase. Chevron Phillips Chemical also recently announced the
construction of a world-scale ethylene cracker in Baytown, Texas
and two world-scale polyethylene reactors in Old Ocean, Texas.
The new construction co-located with the expansion project at the
Cedar Bayou plant will enjoy great synergy as they both share the
same infrastructure and workforce talent.
areadevelopment.com
ExxonMobil Refinery & Chemical Plant is a 3,400 acre complex, along the Houston Ship Channel, that houses approximately 4,000
employees. The plant is the largest in the United States. The Baytown Refinery has been in operation since 1920, and at that time, processed about
10,000 barrels of crude oil per day. Today, they have the capacity to process up to 584,000 barrels per day. The Baytown Chemical Plant began
operations in 1940. It produces products such as the butyl in your tires and the polypropylene in your car bumper. The Baytown Olefins Plant began
operations in 1979 and is one of the largest ethylene plants in the world. The Mont Belvieu Plastics Plant is located 13 miles northeast of the main
complex and was built in 1982. It produces high and low density polyethylene, which goes into products such as grocery bags a nd packaging films. The
Baytown Technology & Engineering Complex has been on-site since the 1920s. It is now the headquarters for ExxonMobil Chemical Technology and is
home to our research and development activities in Baytown. This site has produced innovative technology, such as the lithium -ion battery separator film
and numerous plastics light-weighting technologies that help make our vehicles more fuel efficient. ExxonMobil is currently constructing a $6 billion ethane
cracker, which will supposedly create 350 new jobs and 3,700 related jobs outside of the complex.
http://corporate.exxonmobil.com/en/company/worldwide-operations/locations/united-states/baytown
BRIARWOOD 1711 JAMES BOWIE DR, BAYTOWN, TX 77520
AREA DEVELOPMENT
Area Development
Cedar Crossing Industrial Park is a 10,897-acre industrial park near Houston,
to be the world’s fifth largest industrial park and the largest on the Gulf Coast. The Park is
located 20 miles east of Houston in Chambers County, directly across the Houston Ship
Channel, from the Bayport and Barbour's Cut container terminals. Cedar Crossing is ideal
for light or heavy industrial, manufacturing of all types, waterfront operations and
warehouse/distribution facilities. Approximately 65% of the Park remains undeveloped and
is available for future expansion. Cedar Crossing has attracted many top-tier companies
with significant operations: Home Depot’s 755,000-square-foot distribution hub, and WalMart's 4.2 million-square-foot import center (their largest in the U.S.), just to name a few.
The Park has benefitted from the construction of the Fred Hartman Bridge, the completion
of the Grand Parkway, and a $50 million investment of public funds by the Chambers
County Improvement District I for infrastructure improvements including the Public Barge
Dock and its recent expansion. Additional infrastructure improvements are planned by the
new ownership and will be announced at a later date. Comcast recently announced it will
provide 11 miles of fiber cable to aid in attracting new business.
Bayer-Baytown Industrial Park,
The Baytown Industrial Park is the flagship site for
Bayer MaterialScience LLC in the NAFTA region. The Park sits on 1500 acres in Chambers
County near Baytown and is partially developed. With approximately 1,300 employees it is the
largest Bayer Material Science manufacturing site in the US . The site is home to 4 Bayer
MaterialScience business groups: Polycarbonate, CAS (Coatings, Adhesives and Sealants),
Polyurethane, (IBC) Inorganic Basic Chemicals. The site has grown more than 10-fold since
1971, when the first polyurethane unit started up. Today, the site is a thriving industrial park site
anchored by Bayer MaterialScience LLC. The site also hosts Bayer Corporate and Business
Services, LANXESS Corporation, Borden Chemical, El Dorado Nitrogen, First Chemical Texas,
Texas Brine, and the Calpine Baytown Energy Center.
Barbours Cut Ship Terminal is a major deep water port in the
ExxonMobil Corp,
Baytown
Greater Houston area and is part of one of the world's busiest ports
by cargo tonnage. Barbour's Cut is situated between La Porte and
Mogan's Point, TX. This channel, located at the mouth of Buffalo
Bayou on Galveston Bay, is itself a tributary to the larger Houston
Ship Channel. Located approximately 27 miles from downtown
Houston, the premier container handling facility recently welcomed
four 30-story high cranes from South Korea, as a part of a bigger
$700 million revamp of the terminal as the port sees bigger container
ships with more cargo. Per Chron.com, a statement released from
the Port of Houston Authority stated, the new cranes will be able to
load and unload ships at 295 feet per minute, almost twice as fast as
the current cranes at the terminal.
chron.com
Briarwood
Cedar Crossing
Ameriport AmeriPort is a unique 723-acre, rail-served, industrial development focused on logistics to significantly
improve efficiencies and savings for businesses. Located just east of Baytown, Texas and in close proximity to the Port of
Houston, this master-planned business park has all the right connections – from rail service and rail storage to heavy
haul, barge terminals, and easy interstate access. Strategically situated in pro-business Chambers County, AmeriPort is
located on FM 565, just south of Interstate 10, with direct connectivity to the Grand Parkway (SH 99), SH 146, and FM
1405.
ameriport.com
Houston
HOUSTON
The City of Houston, the largest city in Texas and the fourth largest city
in the United States, is located on the coastal prairies of southeast
Texas and is home to a diverse array of industries and cultures.
Houston is located in Harris County, the nation’s third most populous
county. The Houston region, officially designated as the Houston –
The Woodlands - Sugar Land Metropolitan Statistical Area (MSA),
comprises Harris County and nine other counties: Austin, Brazoria,
The Houston Region is One of the
Youngest, Fastest-Growing, and
Most Diverse Populations in the
Nation.
Chambers, Fort Bend, Galveston, Liberty, Montgomery, San Jacinto
and Waller.
The Houston MSA has a population of 6.3 million,
according to new 2010 census figures, up from 5.5 million reported in
the 2000 census. The ten county metropolitan area is the fifth-largest
metropolitan area in the nation; combined with its zone of
extraterritorial jurisdiction, an area extending five miles beyond the
city’s boundary, the city controls 1,906 square miles.
The most
urbanized portions of the Houston area are in Harris County, the
southern part of Montgomery County, and the eastern section of Fort
Bend County. Houston is home to the sixth largest port in the world
and is in close proximity to Mexico, a key trading partner. It has a
temperate climate and an affordable cost of living.
.
Houston in Perspective
 If the nine-county Houston MSA were a state, according to the U.S.
Census Bureau, it would rank 18th in population. The Houston MSA's
6,313,158 residents as of July 1, 2013 would place it behind
Tennessee (6,495,978) and ahead of Missouri (6,044,171) and
Maryland (5,928,814).
 If Harris County were a state, it would rank 27th in population. Its
4,336,853 residents as of July 1, 2013 would place it behind Kentucky
(4,395,295) and ahead of Oregon (3,930,065) and Oklahoma
(3,850,568).
 If the City of Houston were a state, it would rank 36th in population.
The city's 2,195,914 residents in 2013 place it behind Nevada
(2,790,136) and ahead of New Mexico (2,058,287).
 The Houston combined Statistical Area (CSA) covers 14,288 square
miles - an area larger than Maryland.
The nine-county Houston Metropolitan statistical Area (MSA) covers
9,432 square miles - an area smaller than Maryland but larger than
New Jersy.
 Harris County covers 1,778 square miles - an area nearly half as
large as Rhode Island.
 At 655 square miles, the city limits of Houston could contain the
cities of New York, Washington, D.C., Boston, San Francisco, Seattle,
Minneapolis and Miami.
 Among the nation's metropiolitan area, the Houston MSA in 2013
ranked fourth in number of Hispanics (2,279,622), seventh in number
of blacks (1,063,017) and seventh in number of Asians (438,349),
according to the Census Bureau's American Community Survey.
Source: The Greater Houston Partnership July 2015
uston
Houston
2015 Market Outlook
The Houston economy
has diversified significantly in recent
years, though low oil prices will present challenges during 2015 and
apartment operations will soften in the months ahead. Global layoffs
■ Employment: Employment growth will slow to a rate slightly
have been announced by some of the metro’s largest energy
below the national average this year as employers in the metro
companies, including BP, Shell, Schlumberger, Baker Hughes and
create 50,000 positions, approximately half of the number of
Halliburton; however, the direct impact on Houston remains unclear.
positions added during 2014.
While downstream industries such as petrochemicals and refining
benefit from lower oil prices, growth in this segment of the energy
market might not be enough to mitigate total layoffs and job growth will
■ Construction: Completions will reach 20,000 units this year,
moderate this year. Strong hiring in sectors such as construction,
representing a 3 percent increase in total stock. Builders
where multifamily development is creating new positions, will offset
delivered 12,000 apartments last year.
losses in other areas. However, the energy market concerns,
combined with a large influx of inventory coming online, this year will
■ Vacancy: Apartment vacancy will reach 7.8 percent in 2015,
affect the apartment market, pushing up vacancy and supporting the
an increase of 160 basis points. During 2014, vacancy ticked up
slowest rent growth since 2011.
10 basis points as supply growth accelerated.
Not all is gloom and doom, however. Oil prices have
■ Rents: Rent growth will slow dramatically from the past three
stabilized. The fall in the rig count appears to have
hit bottom.
years as softening occurs across the metro. Average rents will
The fleet actually added rigs the third week of June.
rise 4.0 percent this year to $1,006 per month, following a 6.5
CenterPoint continues to sign up new customers and electricity
percent increase in 2014.
consumption is up for the year. Traffic through the Houston Airport
Source: Marcus & Millichap Apartment Research Market Report April 2015
System continues to grow. With only a 3.1- month supply of homes on
the market there’s little danger of nearterm overbuilding. (A 6.0-month
supply is considered a balanced market.) Apartment occupancy and
The Forecast
lease rates are holding firm (good news for landlords but bad news for
tenants). At 4.2 percent, Houston’s May unemployment rate is well
below the 5.3 percent national average. And several respondents to a
June Texas manufacturing survey told the Federal Reserve Bank of
Dallas they believed the worst was over for the oil and gas industry.
Investors will remain keen on the Houston apartment market,
especially as 2016 presents a pause in the construction cycle that will
hasten the realignment of supply and demand. Cap rates are projected
to rise about 25 basis points this year due to softer operations, which
could prompt some owners to list properties. As out-of-state buyers,
meanwhile, continue to bolster demand for assets in the metro, an
uptick in listings could help alleviate the shortage of inventory
experienced over the past few years. As thousands of luxury
apartments come online within the Inner Loop, 1970s- and 1980svintage properties will remain in strong demand as these may offer
substantial rental upsides or repositioning opportunities. In the
southern and eastern portions of the metro, the ongoing expansion of
the port and shipping channel, as well as continuing healthcare
development, will help drive investment in submarkets nearby.
Source:
Marcus & Millichap Apartment Research Market Report April 2015 & The Greater Houston Partnership
July 2015
Given the softness in the local economy, according to the Greater
Houston Partnership, it anticipates the region will gain 20,000 to
30,000 jobs this year, not as robust as previous years but still in
positive territory. As with the Partnership’s earlier forecast, the revised
outlook is based on a number of assumptions. Oil prices, though they
may experience short-term volatility, average $60 or above the
remainder of the year. The rig count has bottomed out. The majority of
the energy-related layoffs have taken place. Local business confidence
holds firm. Consumer spending slows only moderately. The U.S.
economy expands at an annual rate of 2.5 percent or better the
remainder of the year. And any geopolitical events that occur—Greece
exiting from the Eurozone, a downturn in China’s economy, major
terrorist attack overseas—have a limited impact on the U.S. economy.
Source: The Greater Houston Partnership Economy at a Glance, July 2015
.
BRIARWOOD 1711 JAMES BOWIE DR, BAYTOWN, TX 77520
POPULATION
DEMOGRAPHICS
1 Mile Radius
3 Mile Radius
5 Mile Radius
11,317
12,155
10,648
10,144
32,974
35,428
31,014
28,593
50,104
53,835
47,127
43,651
1.5%
0.8%
1.5%
1.1%
1.5%
1.1%
32.9
31.5
32.6
2011 Estimated Households
2016 Projected Households
2010 Census Households
2000 Census Households
4,157
4,483
3,880
3,885
11,345
12,234
10,589
10,116
17,608
18,999
16,432
15,483
Projected Annual Growth 2011 to 2016
Historical Annual Growth 2000 to 2011
1.6%
0.5%
1.6%
0.9%
1.6%
1.0%
2011 Estimated White
2011 Estimated Black or African American
2011 Estimated Asian or Pacific Islander
2011 Estimated American Indian or Native Alaskan
2011 Estimated Other Races
66.9%
12.8%
1.1%
0.5%
18.7%
64.1%
12.8%
1.1%
0.7%
21.4%
63.0%
14.5%
1.4%
0.7%
20.4%
2011 Estimated Hispanic
40.7%
48.4%
45.8%
$55,899
$46,830
$20,580
$56,356
$49,826
$19,415
$59,745
$50,904
$21,039
2011 Estimated Population
2016 Projected Population
2010 Census Population
2000 Census Population
Projected Annual Growth 2011 to 2016
Historical Annual Growth 2000 to 2011
INCOME
RACE AND ETHNICITY
HOUSEHOLDS
2011 Median Age
40%
41%
7%
11%
1%
White
Black
Asian
Other
40.7%
2011 Estimated Average Household Income
2011 Estimated Median Household Income
2011 Estimated Per Capita Income
Hispanic
Non-Hispanic
Hispanic
59.3%
EDUCATION
(AGE 25+)
Average Income
2011 Estimated Elementary (Grade Level 0 to 8)
2011 Estimated Some High School (Grade Level 9 to 11)
2011 Estimated High School Graduate
2011 Estimated Some College
2011 Estimated Associates Degree Only
2011 Estimated Bachelors Degree Only
2011 Estimated Graduate Degree
7.7%
12.6%
31.2%
25.7%
8.7%
9.6%
4.5%
11.1%
15.3%
29.4%
25.3%
6.8%
8.3%
3.7%
11.2%
14.4%
28.7%
25.6%
6.6%
9.0%
4.5%
$80,000
$72,073
$70,000
$60,000
$55,899
$50,000
$40,000
BUSINESS
$30,000
2011 Estimated Total Businesses
2011 Estimated Total Employees
2011 Estimated Employee Population per Business
2011 Estimated Residential Population per Business
346
2,170
6.3
32.7
999
7,692
7.7
33.0
1,756
18,419
10.5
28.5
$20,000
$10,000
$0
Subject
Houston
BRIARWOOD 1711 JAMES BOWIE DR, BAYTOWN, TX 77520
BRIARWOOD 1711 JAMES BOWIE DR, BAYTOWN, TX 77520
BRIARWOOD 1711 JAMES BOWIE DR, BAYTOWN, TX 77520
BRIARWOOD 1711 JAMES BOWIE DR, BAYTOWN, TX 77520
BRIARWOOD 1711 JAMES BOWIE DR, BAYTOWN, TX 77520
BRIARWOOD 1711 JAMES BOWIE DR, BAYTOWN, TX 77520
BRIARWOOD 1711 JAMES BOWIE DR, BAYTOWN, TX 77520
BRIARWOOD 1711 JAMES BOWIE DR, BAYTOWN, TX 77520
BRIARWOOD 1711 JAMES BOWIE DR, BAYTOWN, TX 77520
BRIARWOOD 1711 JAMES BOWIE DR, BAYTOWN, TX 77520
Massive industrial park near Port sells land for spec distribution facility
Dec 29, 2015, 12:07pm CST
Nearly 80 acres in the Cedar Port Industrial Park have been sold for construction of a 1.5 million-square-foot
development.
Houston-based Clay Development & Construction Inc. bought the 79.57 acres on Borusan Road and FM 1405
from TGS Cedar Port Partners LP for an undisclosed amount. John Simons and John Feruzzo of NAI Houston
represented the seller. Charlie Crist of Clay Development & Construction represented his firm in the
transaction.
Houston based Clay Development & Construction Inc. bought 80
acres in the Cedar Port Industrial Park in Baytown ti build a 15
million square-foot industrial development. The first of teh three
buildings will break ground in January.
COURTESY CLAY DEVELOPMENT & CONSTRUCTION
Clay Development & Construction will build three
500,000-square-foot rail-served, dock-high distribution
buildings in its development, dubbed Cedar Port
Distribution Park. Construction on the first building, at
4830 Borusan Road, will begin in January and is expected
to be complete in August. harlie Christ of Clay
Development & Construction will handle sales and leasing
for the distribution park. The buildings do not have major
"The economic drivers in this market are the low price of natural gas, steady growth in the petrochemical and
plastics industries, and the demand for newly built, rail-served, accessible distribution space near the Ship
Channel," Robert Clay, president of Clay Development & Construction, said in a statement. "With the recent
Panama Canal and Port of Houston expansions, both global and national companies are looking for large
warehouse/distribution space in this market. The Borusan Road location offers both rail and public barge dock
access in addition to immediate access to the Highway 99, Highway 146, Interstate 10 and the port."
Beaumont-basedTrans-Global Solutions Ins.'s TGS Cedar Port Partners bought the massive industrial park in
Baytown last December. In February, the company shared plans for major infrastructure that would allow for
nearly 11,000 acres of development along the Houston Ship Channel. In July, the park sold 50 acres ans an
existing 312,000 square-foot to a South American plastics packaging company.
A 268 UNIT CLASS "B-/C+" GARDEN APARTMENT COMMUNITY