107 PLAZA CENTER EDINBURG, TX (MCALLEN MSA)
PRICING & FINANCIAL ANALYSIS
1 0 7 P LAZ A C E NT E R
107 Plaza Center 1641 & 1657 W University Dr Edinburg, TX 78539
OFFERING SUMMARY Price Cap Rate
$3,350,000 7.50%
Net Operating Income
$251,182
Price PSF
$278.59
Occupancy Year Built
100.0% 2007
Gross Leasable Area
12,025 SF
Lot Size
1.14 Acres
F I N A N C I A L A N A LY S I S
2
PRICING & FINANCIAL ANALYSIS
1 0 7 P LAZ A C E NT E R
PROJECTED INCOME & EXPENSES Base Rent - Occupied Space
CURRENT 100%
GROSS POTENTIAL RENT
PSF
EXPENSES
CURRENT
PSF
$253,116
$21.05
Real Estate Taxes
$37,598
$3.13
$253,116
$21.05
Insurance
$12,198
$1.01
$2,697
$0.22
$552
$0.05
Expense Reimbursements
CAM
Real Estate Taxes
$37,598
$3.13
Cleaning & Maintenance
Insurance
$12,198
$1.01
Legal/Fees
CAM
$18,101
$1.51
Repair & Maintenance
$4,815
$0.40
Mgmt. Fee
$8,907
$0.74
Utilities
$9,301
$0.77
$76,804
$6.39
Construction Exp
$1,680
$0.14
$329,920
$27.44
$19,045
$1.58
$9,898
$0.82
($37,598)
($3.13)
($12,198)
($1.01)
$78,738
$6.55
($19,045)
($1.58)
($9,898)
($0.82)
($78,738)
($6.55)
$251,182
$20.89
Total Expense Reimbursements GROSS POTENTIAL INCOME Operating Expenses
Management Fee
Real Estate Taxes Insurance CAM Mgmt. Fee Total Recoverable Expenses Net Operating Income
Total CAM
3.00%
Total Expenses
3.00%
F I N A N C I A L A N A LY S I S
3
RE NT RO L L
Suite
Tenant
1 0 7 P LAZ A C E NT E R
SQ FT
% of SQFT
Lease Dates
Rent
Escalation
Start
End
Annual
PSF
Date
Amount
Options
Lease Type
1629
Boost Mobile
1,202
10.0%
12/1/2017
11/30/2020
$24,040
$20.00
-
-
-
NNN+Net MGT
1633
Gorditas Dona
1,202
10.0%
12/26/2007
1/31/2020
$24,060
$20.02
2/1/2020
$24.01
1x5
NNN+Net MGT
1637
Subway
1,528
12.7%
12/1/2017
11/30/2022
$27,504
$18.00
12/1/2022
Base+ CPI
2x5
NNN+Net MGT
1639
Paris Nails & Spa
975
8.1%
6/1/2017
7/31/2020
$17,550
$18.00
-
-
-
NNN+Net MGT
1641
Supercuts
1,105
9.2%
7/24/2013
7/31/2023
$26,520
$24.00
8/1/2018
$26.40
2x5
NNN+Net MGT
1645
Smartphone Medic
1,203
10.0%
12/1/2017
11/30/2020
$24,060
$20.00
12/1/2020
$23.99
1x3
NNN @ $4.94/SF/Yr
1649
MetroPCS
1,203
10.0%
7/15/2013
7/31/2021
$21,660
$18.00
8/1/2021
$23.99
2x3
NNN+Net MGT
1653
Opportun
1,202
10.0%
10/1/2016
6/30/2021
$24,100
$20.05
-
-
-
NNN+Net MGT
1657
Kahlo Threading
780
6.5%
10/1/2013
9/30/2021
$18,720
$24.00
10/1/2021
$26.40
1x5
NNN+Net MGT
1661
Maki Sushi
1,625
13.5%
10/23/2007
12/31/2021
$42,250
$26.00
11/1/2019
$28.60
-
NNN+Net MGT
Occupied
12,025
100.0%
$250,464
$20.83
Available
0
0.0%
12,025
100.0%
Total
F I N A N C I A L A N A LY S I S
4
ESTIMATED REIMBURSEMENT REVENUE
1 0 7 P LAZ A C E NT E R
Prorata
Annual
Share
Taxes
1,202
10.0%
$3,758
$3.13
$1,219
$1.01
$1,904
$1.58
$989
$0.82
$7,871
$6.55
Gorditas Dona
1,202
10.0%
$3,758
$3.13
$1,219
$1.01
$1,904
$1.58
$989
$0.82
$7,871
$6.55
1637
Subway
1,528
12.7%
$4,777
$3.13
$1,550
$1.01
$2,420
$1.58
$1,258
$0.82
$10,005
$6.55
1639
Paris Nails & Spa
975
8.1%
$3,048
$3.13
$989
$1.01
$1,544
$1.58
$803
$0.82
$6,384
$6.55
1641
Supercuts
1,105
9.2%
$3,455
$3.13
$1,121
$1.01
$1,750
$1.58
$910
$0.82
$7,235
$6.55
1645
Smartphone Medic
1,203
10.0%
$3,761
$3.13
$1,220
$1.01
$961
$0.80
$0.00
$0.00
$5,943
$4.94
1649
MetroPCS
1,203
10.0%
$3,761
$3.13
$1,220
$1.01
$1,905
$1.58
$990
$0.82
$7,877
$6.55
1653
Opportun
1,202
10.0%
$3,758
$3.13
$1,219
$1.01
$1,904
$1.58
$989
$0.82
$7,871
$6.55
1657
Kahlo Threading
780
6.5%
$2,439
$3.13
$791
$1.01
$1,235
$1.58
$642
$0.82
$5,107
$6.55
1661
Maki Sushi
1,625
13.5%
$5,081
$3.13
$1,648
$1.01
$2,574
$1.58
$1,338
$0.82
$10,640
$6.55
$37,598
$3.13
$12,198
$1.01
$18,101
$1.51
$8,907
$0.74
$76,804
$6.39
Suite
Tenant
SQ FT
1629
Boost Mobile
1633
TOTALS
PSF
Annual Insurance
PSF
Annual CAM
PSF
Annual Mgmt Fee
PSF
Annual Total
PSF
Lease Notes: Smart Phone Medic Reimbursements are Capped at $495/month for the term of the lease
F I N A N C I A L A N A LY S I S
5
TE NA NT INF ORMAT I ON
1 0 7 P LAZ A C E NT E R
DBA
Boost Mobile
Entity on Lease
Boost Worldwide, Inc
Corporate/Franchise
Franchise
Locations
17,500+
Credit Rating
Not Rated
Public/Private
Private; NYSE: S (Sprint, Parent Company)
Line of Business
Boost Mobile is a wireless telecommunications brand used by two independent carriers in Australia and the United States. In Australia, it is operated by Boost Tel Pty Limited using the Telstra wireless network, where in the United States it is operated by Boost Worldwide, Inc, a Sprint Corporation subsidiary. Boost Mobile LLC operates as a prepaid wireless carrier. The company offers phones and devices, account management, and device support services; accessories; and plans and services.
DBA
Subway
Entity on Lease
Subway Real Estate
Corporate/Franchise
Corporate
Locations
44,400 locations in 111 countries
Credit Rating
Not Rated
Public/Private
Private
Line of Business
The largest single-brand restaurant chain and the largest restaurant operator in the world, Subway is a quick-serve restaurant offering submarine sandwiches and salads.
DBA
Oportun
Entity on Lease
Oportun
Corporate/Franchise
Corporate
Locations
245+
Credit Rating
Not Rated
Public/Private
Private
Line of Business
Oportun is a financial technology company founded in 2005 with the mission of providing affordable loans that help people with little or no credit history establish credit and build a better future.
PROPERTY DESCRIPTION
6
TE NA NT INF ORMAT I ON
1 0 7 P LAZ A C E NT E R
DBA
MetroPCS
Entity on Lease
LRP Global LLC
Corporate/Franchise
Franchise
Locations
15,000+
Credit Rating
Not Rated
Public/Private
Public
Line of Business
MetroPCS is a prepaid wireless service in the United States that is part of T-Mobile US, Inc. MetroPCS provides nationwide talk, text, and data depending on the plan services using T-Mobile US’ GSM, HSPA, HSPA+ and 4G LTE networks.
DBA
Supercuts
Entity on Lease
Supercuts, Inc.
Corporate/Franchise
Corporate
Locations
2,400 locations across the U.S.
Credit Rating
Not Rated
Public/Private
NYSE: RGS
Line of Business
Supercuts provides a range of hair services including men’s haircuts, women’s haircuts, kids’ haircuts, color services, and waxing to keep you looking sharp. Supercuts also offers professional haircare products at affordable prices.
PROPERTY DESCRIPTION
7
I N VE S TMENT HI GHLI GHT S
1 0 7 P LAZ A C E NT E R
SNAPSHOT
• #7 Fastest Growing City in the U.S. (MSN Money) • #3 Fastest Growing City in Texas (My San Antonio) • Located Directly Across from Walmart Supercenter • Historically Occupied Constructed in 2007
Over
90%
Since
Building
was
• Ease of Re-Tenanting and Leasing - Suite Spaces Range From 975-1600 SF
Estimated Vehicles Per Day
Average Household Income
31,600
$64,728
Projected Population Growth 2010-2017
Population: 5 Mile Radius
13.39%
137,124
• Shadowed by The University of Texas Rio Grande ValleyThe 10th Largest University in Texas with close to 30,000 Students • Benefits From Cross-Border Consumer Traffic • 5 Mile Population Exceeds 137,100 People - 50% Increase Since 2000 and Has a Projected Growth of 6.78% in the Next 5 Years • Traffic Counts Exceed 31,600 Vehicles Per Day Along W University Blvd and 16,990 Vehicles Per Day on Sugar Rd
PROPERTY DESCRIPTION
8
Maki Sushi (1,625 SF)
Kahlo Threading (780 SF) Opportun (1,202 SF)
(1,203 SF) Smartphone Medic (1,203 SF)
(1,105 SF) Paris Nails & Spa (975 SF)
(1,528 SF) Gorditas Dona (1,202 SF)
(1,202 SF)
S I T E PL A N 1 0 7 P LAZ A C E NT E R
1661 1657 1653 1649 1645 1641 1639 1637 1633 1629
W University Dr
PROPERTY DESCRIPTION
9
A E R I AL MA P
1 0 7 P LAZ A C E NT E R
SUGAR RD
W UNIV
ERSIT Y
DR
31,600 V PD
16,990 V PD PROPERTY DESCRIPTION
10
A E R I AL MA P
1 0 7 P LAZ A C E NT E R
N
NIV WU
TY E RS I
31,00 DR (
0 VP
D)
PROPERTY DESCRIPTION
11
LO C AL MA P
1 0 7 P LAZ A C E NT E R
PROPERTY DESCRIPTION
12
REG IONA L MA P
1 0 7 P LAZ A C E NT E R
PROPERTY DESCRIPTION
13
M A R KET S U MMARY
1 0 7 P LAZ A C E NT E R
McAllen, TX
OVERVIEW McAllen is the twenty-first most populous city in Texas and the largest city in Hidalgo County, Texas, United States. It is located at the southern tip of Texas in the Rio Grande Valley and is part of the Southern United States. It is on the Rio Grande, across from the Mexican city of Reynosa, and is approximately 70 miles (110 km) west of South Padre Island and the Gulf of Mexico. McAllen is often referred to as the retail center of Southern Texas and Northern Mexico. In fact, the region’s La Plaza Mall makes the most sales per square foot than any other shopping mall in the country. The 2010 United States census put the city’s population at 129,877 and the McAllen–Edinburg– Mission metropolitan area at 774,773. It is ranked the fifth most populated metropolitan area in the state of Texas. The Reynosa–McAllen Metropolitan Area counts a population of nearly 1.5 million. The McAllen– Edinburg–Mission metropolitan area is also one of the fastest growing metropolitan areas in the United States.
The metro area is also a haven for those crossing the border from Mexico to Texas. As of August 2015, Catholic Charities of the Rio Grande Valley, along with the Sacred Heart Church in McAllen, have helped more than 23,000 people looking to make a new life for themselves in the U.S. As a result, Hispanic culture is strong in the area, with numerous Mexican restaurants found throughout the region and Mexican festivals taking place during the year. McAllen has seen year-over-year job growth of around 2.5 percent, but the area’s unemployment rate is higher than the national average.Education and health services make up two of the largest employment sectors in McAllen thanks to top employers like the McAllen Independent School District, South Texas College, the University of Texas-Rio Grande Valley, McAllen Medical Center and Rio Grande Regional Hospital. There are also opportunities in the public sector, including with the City of McAllen. Other major employers include BBVA Compass Bank, IBC Bank and GE Engines.
PROPERTY DESCRIPTION
14
D E M OG RA PHIC STAT I ST I CS
1 0 7 P LAZ A C E NT E R
1 MILE
3 MILE
5 MILE
2022 Projection 2017 Estimate 2010 Census Growth 2017-2022 Growth 2010-2017 2017 Population Hispanic Origin
11,559 11,023 10,865 4.86% 1.45% 10,614
75,904 71,187 63,379 6.63% 12.32% 65,249
146,425 137,124 120,928 6.78% 13.39% 125,805
White Black Am. Indian & Alaskan Asian Hawaiian & Pacific Island Other U.S. Armed Forces:
10,703 97 90 67 5 61 0
68,060 931 499 1,287 41 368 0
131,472 1,470 750 2,712 63 657 22
3,463 3,309 3,300 4.65% 0.27% 1,942 1,367 $46,662 $30,160
22,894 21,504 19,354 6.46% 11.11% 11,865 9,639 $58,952 $42,461
41,822 39,220 34,950 6.63% 12.22% 24,907 14,313 $64,728 $42,461
1,540 784 380 210 168 96 66 65
7,109 4,939 3,516 2,331 1,499 963 667 481
11,911 9,421 6,097 3,962 2,780 2,042 1,614 1,394
Population:
Households: 2022 Projection 2017 Estimate 2010 Census Growth 2017 - 2022 Growth 2010 - 2017 Owner Occupied Renter Occupied 2017 Avg Household Income 2017 Med Household Income <$25,000 $25,000 - $50,000 $50,000 - $75,000 $75,000 - $100,000 $100,000 - $125,000 $125,000 - $150,000 $150,000 - $200,000 $200,000+ Demographic data © CoStar 2017
PROPERTY DESCRIPTION
15
CONFIDENTIALITY AGREEMENT The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from STRIVE and it should not be made available to any other person or entity without the written consent of STRIVE. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to STRIVE. This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. STRIVE has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenantâ&#x20AC;&#x2122;s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, STRIVE has not verified, and will not verify, any of the information contained herein, nor has STRIVE conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT STRIVE AGENT FOR MORE DETAILS.
Commercial Disclaimer STRIVE hereby advises all prospective purchasers of commercial property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, STRIVE has not and will not verify any of this information, nor has STRIVE conducted any investigation regarding these matters. STRIVE makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a commercial property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. STRIVE expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a commercial property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any commercial property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenants and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenants history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term leases, including the likelihood of locating replacement tenants if any of the current tenants should default or abandon the property, and the lease terms that Buyer may be able to negotiate with any potential replacement tenants considering the location of the property, and Buyer’s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release STRIVE and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this commercial property.
Information About Brokerage Services
Texas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords. TYPES OF REAL ESTATE LICENSE HOLDERS: • A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker. • A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker. A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): • Put the interests of the client above all others, including the broker’s own interests; • Inform the client of any material information about the property or transaction received by the broker; • Answer the client’s questions and present any offer to or counter-offer from the client; and • Treat all parties to a real estate transaction honestly and fairly. A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION: AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner’s agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner’s agent must perform the broker’s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer’s agent. AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant’s agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer’s agent must perform the broker’s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by th e seller or seller’s agent. AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. A broker who acts as an intermediary: • Must treat all parties to the transaction impartially and fairly; • May, with the parties’ written consent, appoint a different license holder associated with the broker to each party (owner and • buyer) to communicate with, provide opinions and advice to, and carry out the instructions of each party to the transaction. • Must not, unless specifically authorized in writing to do so by the party, disclose: ӽӽ that the owner will accept a price less than the written asking price; ӽӽ that the buyer/tenant will pay a price greater than the price submitted in a written offer; and ӽӽ any confidential information or any other information that a party specifically instructs the broker in writing not to disclose, unless required to do so by law. AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: • The broker’s duties and responsibilities to you, and your obligations under the representation agreement. • Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated. LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker’s services. Please acknowledge receipt of this notice below and retain a copy for your records.
Regulated by the Texas Real Estate Commission
Information available at www.trec.texas.gov IABS 1-0
exclusively listed 469.844.8880 | STRIVERE.COM