BEXAR COUNTY OFFICE BUILDING SAN ANTONIO, TX
PRI CING & F INAN CI AL AN ALYSI S
BE X A R COU N T Y O F F IC E B U ILD ING - SAN ANTO NIO, T X
Bexar County Office 2711 SE Loop 410 San Antonio, TX 78222
OFFERING SUMMARY Total Price Prorated Rent/Amortized TI Price Cap Rate Net Operating Income Price PSF Occupancy Year Built Gross Leasable Area Lot Size
$3,790,000 $250,000 $3,540,000 8.00% $283,092 $203.33 100.0% 2008 17,410 SF 2.13 Acres
F I N A N C I A L A N A LY S I S
2
PRI CING & F INAN CI AL AN ALYSI S
Suite 100
Tenant Bexar County Office
Occupied Vacant Total
BE X A R COU N T Y O F F IC E B U ILD ING - SAN ANTO NIO, T X
SQ FT
% of Sqft
Start
End
Term
Begin
Annual Rent
PSF
Options
Lease Type
17,410
100.0%
12/1/2014
11/30/2020
Year 1-7
12/1/2019
$476,971*
$27.40
1x5
Base Year
Option 1
12/1/2020
$355,164
$20.40
Option 2
12/1/2021
$362,267
$20.81
Option 3
12/1/2022
$369,513
$21.22
Option 4
12/1/2023
$376,903
$21.65
Option 5
12/1/2024
$384,441
$22.08
17,410
100.0%
0
0.0%
17,410
100.0%
* The current base rent includes amortized tenant improvement cost reimbursements until 11/31/2020. 12/1/2020 base rent is reduced as it no longer includes the amortized tenant improvement costs
F I N A N C I A L A N A LY S I S
3
PRI CING & F INAN CI AL AN ALYSI S
BE X A R COU N T Y O F F IC E B U ILD ING - SAN ANTO NIO, T X
PROJECTED INCOME & EXPENSES Base Rent - Occupied Space
CURRENT 100%
GROSS POTENTIAL RENT
PSF
$355,164*
$20.40
Real Estate Taxes
$355,164
$20.40
Insurance
Expense Reimbursements Insurance CAM Mgmt. Fee Less Base Stop Total Expense Reimbursements GROSS POTENTIAL INCOME
$73,779
$4.24
$6,415
$0.37
$4.24
Accounting Fees
$8,000
$0.46
$6,415
$0.37
Property Maintenance
$29,629
$1.70
$75,838
$4.36
RE Tax Protest Fee
$1,112
$0.06
$13,581
$0.78
Repairs & Maintenance
$6,268
$0.36
($72,072)
($4.14)
Utilities
$30,829
$1.77
$97,541
$5.60
Total CAM
$75,838
$4.36
$452,705
$26.00
$13,581
$0.78
$169,613
$9.74
Management Fee Total Expenses
Real Estate Taxes Insurance CAM
Net Operating Income
PSF
$73,779
Operating Expenses
Total Recoverable Expenses
CURRENT
CAM
Real Estate Taxes
Mgmt. Fee
EXPENSES
3.00%
($73,779)
($4.24)
($6,415)
($0.37)
($75,838)
($4.36)
($13,581)
($0.78)
($169,613)
($9.74)
$283,092
$16.26
3.00%
* Base rent is based on first option period/annual rent of $355,164 ($29,597/month) starting 12/1/2020
F I N A N C I A L A N A LY S I S
4
PRI CING & F INAN CI AL AN ALYSI S
BE X A R COU N T Y O F F IC E B U ILD ING - SAN ANTO NIO, T X
PORTFOLIO SUMMARY This Property may be purchased individually or as part of a portfolio
PROPERTY
ADDRESS
CITY
STATE
PRICE
NOI
CAP RATE
1
Stonebridge Pediatrics
5561 Virginia Pkwy
McKinney
TX
$3,800,000
$256,477
6.75%
2
McKinney Two-Tenant Strip
1980 N Central Expy
McKinney
TX
$2,450,000
$165,459
6.75%
3
Cash America Pawn
5016 Lemmon Ave
Dallas
TX
$2,025,000
$106,260
5.25%
4
BlueWave Express Wash
1665 Eldridge Pkwy
Houston
TX
$5,050,000
$341,000
6.75%
5
Christian Brothers Automotive
7937 Westheimer Rd
Houston
TX
$3,080,000
$184,677
6.00%
6
Christian Brothers Automotive
10010 McMullen Rd
Brandon
FL
$2,980,000
$178,946
6.00%
7
Kirby’s Steakhouse
3305 E State Hwy 114
Southlake
TX
$4,080,000
$265,000
6.50%
8
BlueWave Express Wash
9801 Jones Rd
Houston
TX
$4,400,000
$297,000
6.75%
9
Target Strip on LBJ
5631 LBJ Fwy
Dallas
TX
$4,425,000
$399,000 (1)
10
Bexar County Office Building
2711 SE Loop 410
San Antonio
TX
$3,790,000 (2)
$283,092
8.00%
11
ABA North Texas
6200 Virginia Pkwy
McKinney
TX
$1,830,000
$127,818
7.00%
9.00% (1)
12
Multi-Tenant Office Building
1405-1415 Halsey Way
Carrollton
TX
$3,910,000
$312,574
8.00%
13
Little Sunshine’s Playhouse
600 Zena Rucker Rd
Southlake
TX
$3,960,000
$267,000
6.75%
14
Little Sunshine’s Playhouse
1501 Lohmans Crossing
Lakeway
TX
$4,630,000
$312,300
6.75%
15
Hooters
4384 Sherwood Way
San Angelo
TX
$3,480,000
$200,000
5.75%
16
Little Sunshine’s Playhouse
8030 Branch Crossing
The Woodlands
TX
$5,325,000
$359,349
6.75%
17
Car Spa
5028 W Park Blvd
Plano
TX
$6,740,000
$455,000
6.75%
18
Service King
4205 W Plano Pkwy
Plano
TX
$6,785,000
$424,000
6.25%
19
Fireside Pies
1285 S Main St
Grapevine
TX
$2,640,000
$178,196
6.75%
20
Winewood Grill
1265 S Main St
Grapevine
TX
$4,225,000
$285,000
6.75%
$79,605,000
$5,398,148
6.76%
TOTAL (1) NOI and Cap Rate is based on Pro Forma (2) Sale price includes $250,000 of amortized T.I.
F I N A N C I A L A N A LY S I S
5
TE NA NT OVERV I EW
As the 4th largest county in Texas and the 17th largest county nationally, Bexar County is steeped in rich history and tradition, while at the same time rapidly growing with a population approaching two million. Home of the first ever digital library, BiblioTech, Bexar County is also the home of such treasures as the San Antonio Riverwalk, the Alamo, and our historic Missions, which are a World Heritage Site.
BE X A R COU N T Y O F F IC E B U ILD ING - SAN ANTO NIO, T X
TENANT SUMMARY Company
Bexar Justice of the Peace
Headquarters
San Antonio, TX
Website
home.bexar.org/jp
F I N A N C I A L A N A LY S I S
6
I N VE S TMENT HI GHLI GHT S
BE X A R COU N T Y O F F IC E B U ILD ING - SAN ANTO NIO, T X
• Long-Term Government Credit Tenant
SNAPSHOT
• Large Lot - Over 2 Acres With Ample Parking
• Great Visibility on Loop 410 - Traffic Counts Along Loop 410 Exceed 67,995 Vehicles Per Day
Estimated Vehicles Per Day
Average Household Income
67,995
$52,385
Projected Population Growth 2018-2023
Population: 5 Mile Radius
8.97%
152,007
• Recent Building Construction in 2008 and Renovation in 2013
• Densely Populated Area - More than 655,000 in a 10 Mile Radius
• Population is Projected to Grow By Another 8% in the Next 5 Years
• Surrounding National Retailers Include Walmart, McDonald’s, Subway, Sprint, Taco Bell, Walgreens, O’Reilly Auto Parts, Domino’s, AutoZone, Sonic, Whataburger, Advance Auto Parts, T-Mobile and Many More
PROPERTY DESCRIPTION
7
A E R I AL MA P
BE X A R COU N T Y O F F IC E B U ILD ING - SAN ANTO NIO, T X
RIGSBY AVE
67,995 VPD
PROPERTY DESCRIPTION
8
LO C AL MA P
BE X A R COU N T Y O F F IC E B U ILD ING - SAN ANTO NIO, T X
PROPERTY DESCRIPTION
9
M A R KET OVERVI EW
BE X A R COU N T Y O F F IC E B U ILD ING - SAN ANTO NIO, T X
San Antonio, TX
OVERVIEW San Antonio (Spanish for “Saint Anthony”), officially the City of San Antonio, is the seventh most populated city in the United States of America and the second most populated city in the state of Texas, with a population of 1,409,019. It was the fastest growing of the top 10 largest cities in the United States from 2000 to 2010, and the second from 1990 to 2000. The city is located in the American Southwest, the south– central part of Texas, and the southwestern corner of an urban region known as the Texas Triangle. The city has characteristics of other western urban centers in which there are sparsely populated areas and a low density rate outside of the city limits. San Antonio is the center of the San Antonio– New Braunfels Metropolitan Statistical Area. Commonly referred to as Greater San Antonio, the metropolitan area has a population of over 2.27 million based on the 2013 US Census estimate,
making it the 25th-largest metropolitan area in the United States and third-largest in the state of Texas. Growth along the Interstate 35 and Interstate 10 corridors to the north, west and east make it likely that the metropolitan area will continue to expand. The US armed forces have numerous facilities in San Antonio: Fort Sam Houston, Lackland Air Force Base, Randolph Air Force Base (which constitute Joint Base San Antonio), and Lackland AFB/Kelly Field Annex, with Camp Bullis and Camp Stanley located outside the city. Kelly Air Force Base operated out of San Antonio until 2001, when the airfield was transferred to Lackland AFB. The remaining portions of the base were developed as Port San Antonio, an industrial/business park. San Antonio is home to six Fortune 500 companies and the South Texas Medical Center, the only medical research and care provider in the South Texas region.
MARKET OVERVIEW
10
D E M OG RA PHIC STAT I ST I CS
BE X A R COU N T Y O F F IC E B U ILD ING - SAN ANTO NIO, T X
1 Mile
3 Mile
5 Mile
8,499 7,857 7,034 8.17% 11.70% 4,316
55,603 51,026 43,318 8.97% 17.79% 29,967
165,443 152,007 130,231 8.84% 16.72% 102,174
5,190 2,336 132 44 13 142 0
35,039 13,887 686 377 102 935 15
114,914 30,634 2,232 1,203 244 2,780 209
2,956 2,745 2,501 7.69% 9.76% 2,106 639 $50,008 $38,036
18,842 17,362 15,014 8.52% 15.64% 11,571 5,791 $52,385 $39,281
55,785 51,423 44,604 8.48% 15.29% 30,843 20,581 $48,113 $37,511
760 982 495 238 166 53 17 34
5,483 5,008 3,111 1,774 1,049 369 339 229
17,350 15,405 8,910 4,931 2,726 1,119 613 369
Population: 2023 Projection 2018 Estimate 2010 Census Growth 2018-2023 Growth 2010-2018 2018 Population Hispanic Origin
2018 Population by Race: White Black Am. Indian & Alaskan Asian Hawaiian & Pacific Island Other U.S. Armed Forces:
Households: 2023 Projection 2018 Estimate 2010 Census Growth 2018 - 2023 Growth 2010 - 2018 Owner Occupied Renter Occupied 2018 Avg Household Income(National Avg - $75,558) 2018 Med Household Income (National Avg - $53,889)
2018 Households by Household Inc: <$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 2018
MARKET OVERVIEW
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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.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2017 STRIVE
Net Lease Disclaimer STRIVE hereby advises all prospective purchasers of Net Leased 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 net leased 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 net leased 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 net leased 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 tenant 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 tenant 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 lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant 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 net leased 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