BROOKSHIRE BROTHERS SC INCLUDES TACO BELL GROUND LEASE NEW CANEY, TX
PRICING & FINANCIAL ANALYSIS
BROOKSHIRE BROTHERS SHOPPING CENTER
FINANCIAL ANALYSIS
Brookshire Brothers SC 20185 US-59 New Caney, TX 77357
Offering Summary Price Cap Rate Net Operating Income Price PSF Occupancy Gross Leasable Area Lot Size
8.19% $356,425 $77.76 100.0% 1985
PROPERTY DESCRIPTION
Year Built
$4,350,000
55,944 SF 6.60 Acres
MARKET OVERVIEW 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. © 2017 STRIVE
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PRICING & FINANCIAL ANALYSIS
BROOKSHIRE BROTHERS SHOPPING CENTER
Base Rent - Occupied Space
100%
GROSS POTENTIAL RENT
Current
PSF
$397,443
$7.10
Real Estate Taxes
$397,443
$7.10
Insurance
Expense Reimbursements CAM Recoveries
Expenses
PSF
$103,146
$1.84
Insurance - GL
$3,064
$0.05
Insurance - Property
$22,578
$0.40
$25,642
$0.46
Landscaping/Groundskeeping
$7,200
$0.13
Professional Fees
$3,660
$0.07
Repair & Maintenance
$11,827
$0.21
Utilities
$8,585
$0.15
Water & Sewer
$15,949
$0.29
$47,221
$0.84
$22,185
$0.40
$198,193
$3.54
$55,912
$1.00
$9,112
$0.16
Total Insurance
$8,907
$0.16
CAM
Real Estate Tax Recoveries
$76,694
$1.37
Total Expense Reimbursements
$150,625
$2.69
Fireworks Stand
$2,950
$0.05
Windshield Replacement Svc
$3,600
$0.06
$6,550
$0.12
$554,618
$9.91
$47,221
$0.84
$22,185
$0.40
Total Insurance
$25,642
$0.46
Total Real Estate Taxes
$103,146
$1.84
Total Recoverable Expenses
$198,193
$3.54
Net Operating Income
$356,425
$6.37
Management Fee Recoveries Insurance Recoveries
Other Revenue
Total Other Revenue EFFECTIVE GROSS REVENUE
Total CAM Management Fee (% of GPI) Total Expenses
4.00%
PROPERTY DESCRIPTION
Current
FINANCIAL ANALYSIS
Projected Income & Expenses
Operating Expenses Total CAM Management Fee
Capital Reserves at $0.15 PSF Cash Flow before Debt Service Market Loan Cash Flow after Debt Service Cash-on-Cash Return
8.19%
MARKET OVERVIEW
Capitalization Rate
4.00%
$8,392 $348,033 $228,867 $119,166 11.73%
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. © 2017 STRIVE
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RENT ROLL
BROOKSHIRE BROTHERS SHOPPING CENTER Minimum Rent
Recoveries
Total
Suite
Sq Ft
% of Sq Ft
Start
End
Annual
Monthly
PSF
Annual
PSF
Revenue
% of Revenue
Sherry D. Tavel, Attorney
200
1,200
2.15%
03/17
02/20
$15,571
$1,298
$12.98
$2,734
$2.28
$18,305
3.34%
Family Medical Clinic
300
11,340
20.27%
07/04
06/19
$109,788
$9,149
$9.68
$33,139
$2.92
$142,927
26.08%
Brookshire Brothers
400
42,004
75.08%
11/00
12/20
$227,796
$18,983
$5.42
$111,266
$2.65
$339,062
61.86%
Jeffery Adams, DDS
500
1,400
2.50%
05/84
06/21
$16,788
$1,399
$11.99
$3,486
$2.49
$20,274
3.70%
Taco Bell - Ground Lease
100
0
0.00%
10/13
09/33
$27,500
$2,292
$0.00
$0.00
$0.00
$27,500
5.02%
Total Count/GLA
5
55,944
100%
$397,443
$33,120
$548,068
100.00%
Occupied
5
55,944
100.0%
Available
0
0
0.0%
55,944
100.0%
Total Avg Rent
$7.10
$150,625
PROPERTY DESCRIPTION
Tenant
FINANCIAL ANALYSIS
Lease Dates
MARKET OVERVIEW 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. © 2017 STRIVE
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ESTIMATED REIMBURSEMENT REVENUE
BROOKSHIRE BROTHERS SHOPPING CENTER Management Fee
Insurance
Real Estate Taxes
Total Recovery
Tenant
Suite
Sq Ft
% of Sq Ft
Monthly
PSF
Monthly
PSF
Monthly
PSF
Monthly
PSF
Monthly
PSF
Sherry D. Tavel, Attorney
200
1,200
2.15%
$228
$2.28
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$228
$2.28
Family Medical Clinic
300
11,340
20.27%
$1,239
$1.31
$0.00
$0.00
$182
$0.19
$1,340
$1.42
$2,762
$2.92
Brookshire Brothers
400
42,004
75.08%
$3,084
$0.88
$759
$0.22
$536
$0.15
$4,893
$1.40
$9,272
$2.65
Jeffery Adams, DDS
500
1,400
2.50%
$109
$0.93
$0.00
$0.00
$23
$0.20
$159
$1.36
$291
$2.49
Taco Bell - Ground Lease
100
0
0.00%
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
55,944
100%
$4,659
Totals
$759
$742
$6,391
FINANCIAL ANALYSIS
CAM
$12,552
PROPERTY DESCRIPTION MARKET OVERVIEW 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. © 2017 STRIVE
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LEASE PROVISIONS
BROOKSHIRE BROTHERS SHOPPING CENTER
Tenant Sherry Tavel, Attorney
Family Medical Center
Termination Rights
Sales Reporting
-
-
No
No
Date
PSF
Options
Date
PSF
200
1,200
3/1/2018 3/1/2019"
$12.98 $13.24
1x1
3/1/2020
$13.77
8x5
7/1/2019 7/1/2024 7/1/2029 7/1/2034 7/1/2039 7/1/2044 7/1/2049 7/1/2054
$11.92 $13.12 $14.20 $15.28 $16.37 $17.45 $18.67 $19.98
-
Right of First offer to lease either of the 1,200 or 1,400 SF Units
5x5
1/1/2020 1/1/2025 1/1/2030 1/1/2035 1/1/2040
MKT
-
-
Yes
-
-
-
-
-
No
4x5
10/1/2033 10/1/2038 10/1/2043 10/1/2048
-
No part of the Restricted Property will be used for the sale of prepared Mexican Food
-
No
300
11,340
-
42,004
Jeffery Adams, DDS
500
1,400
7/1/2018 7/1/2019 7/1/2020
0
10/1/2018 10/1/2023 10/1/2028
100
-
$11.99 $12.35 $12.72
-
PROPERTY DESCRIPTION
Sq Ft
400
Total
User Restrictions & Exclusive uses
Suite
Brookshire Brothers
Taco Bell - Ground Lease
Renewal Options
FINANCIAL ANALYSIS
Base Rental Increases
49,191
MARKET OVERVIEW 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. © 2017 STRIVE
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TENANT INFORMATION
BROOKSHIRE BROTHERS SHOPPING CENTER
Brookshire Brothers, LTD
Corporate/Franchise
Corporate
Locations
110+
Credit Rating
Not Rated
Public/Private
Private, employee owned
Line of Business
Brookshire Brothers and its family of brands operate more than 110 locations throughout Texas and Louisiana. Brothers Austin and Tom Brookshire opened the first store in Lufkin, Texas on September 21, 1921. The company is headquartered in Lufkin, Texas and the portfolio of assets include retail outlets incorporating grocery stores and convenience stores, as well as free standing pharmacy, tabacco, and gasoline locations.
Taco Bell
Entity on Lease
Taco Bell of America, LLC
Corporate/Franchise
Corporate
Locations
7,000+
Credit Rating
S&P; BB
Public/Private
NYSE: YUM (Parent company- Yum! Brands)
Line of Business
Taco Bell is an American chain of fast food restaurants and a subsidiary of Yum! Brands, Inc. The restaurants serve a variety of Tex-Mex foods that include taco, burritos, quesadillas, nachos and a variety of “value menu” items. Taco Bell serves more than 2 billion customers each year at 7,000 restaurants.
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. © 2017 STRIVE
MARKET OVERVIEW
DBA
PROPERTY DESCRIPTION
Brookshire Brothers
Entity on Lease
FINANCIAL ANALYSIS
DBA
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INVESTMENT HIGHLIGHTS
BROOKSHIRE BROTHERS SHOPPING CENTER
FINANCIAL ANALYSIS
• High Growth Trade Area: Since 2010, the population has increased by 25.57% within 5 miles of the Property, and it is expected to grow an additional 15.89% over the next 5 years. • Taco Bell Ground Lease: The Property includes a Taco Bell Ground lease with approximately 15 years remaining on its initial term. This single tenant asset could be immediately sold off in a strategy to reduce an investor’s basis. • Access & Visibility: Positioned at the southeast corner of US 69 and FM 1485, the Property has great visibility and exposure to more than 85,000 vehicles per day.
PROPERTY DESCRIPTION
• Priced Below Replacement Cost: Brookshire Brothers Shopping Center presents a compelling opportunity to acquire a retail asset at $78 per square foot, which is well below replacement cost. • Grand Parkway: Houston’s Grand Parkway is the latest regional loop to be built around the greater Houston area, and once completed it will run less than 2 miles south of the Property. Grand Parkway’s development will create even more traffic for the Property as new residents begin moving to the multiple master planned community developments nearby.
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. © 2017 STRIVE
MARKET OVERVIEW
• Valley Ranch Master Planned Community: Located less than 3 miles from the Property is a new 1,400 acres community called Valley Ranch. By 2023 there will be over 2,500 single family homes and over 1,000 multifamily residences. Valley Ranch also includes over 1.5 million square feet of retail and office space. Phase 1 of the mixed use development opened in 2016 and includes tenants such as Cinemark Theatre, Academy Sports, Ross, PetSmart, Chick Fil A, Buffalo Wild Wings, SportClips, Five Guys, UPS, and many more.
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SITE PLAN
BROOKSHIRE BROTHERS SHOPPING CENTER
FINANCIAL ANALYSIS
Attorney
200
400
Dentist
500
Family Practice Center
300
PROPERTY DESCRIPTION
o cc ba Ta Barn
NOT A PART
NOT A PART
100
MARKET OVERVIEW
50,260 VPD 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. © 2017 STRIVE
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AERIAL MAP
BROOKSHIRE BROTHERS SHOPPING CENTER
FINANCIAL ANALYSIS PROPERTY DESCRIPTION
50,260 Vehicles Per Day
AV Bull Sallas Park
Ed Rinehart Sports Complex
MARKET OVERVIEW
Texan Drive Stadium
New Caney High School
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. © 2017 STRIVE
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LEASE COMPARABLES
Brookeshire Brothers SC 20185 US-59 New Caney, TX 77357
GLA 55,944
Yr Built/ Renovated Occupancy 1996
Major Tenants
Available SF
Rental Rates
NNN
0
(Anchor) $5.50 (Inline) $10.00 - $13.00
$2.50
$5.93
100.0%
Brookshire Brothers, Taco Bell, Barry Willens, MD & Associates, Jeffery Adams, DDS
0
(Anchor) $11.00 - $12.00 (Inline) $30.00 - $36.00
508,888
2017
100.0%
Kroger Marketplace, Academy, AT&T, Bank of America, Burlington, Chick Fil A, Cinemark Theatre, Five Guys
Food Town Retail 2 20875 FM 1485 New Caney, TX 77357
65,557
2006
100.0%
Food Town, Subway, Metro PCS, Happy Donuts, Cricket Wireless, Papa John's Pizza
0
(Inline) $13.00 - $15.00
$3.00
Porterwood Shopping Center 3 23741 Highway 59 Porter, TX 77365
90,142
1974
89.1%
Burkes Outlet, Cici's Pizza, Goodwill, Payless ShoeSource, Aaron's, GameStop, Subway
9,870
(Inline) $8.00-$16.00
$5.80
92.0%
Community Hardware, Salon Bombshell, Fat Boy's, Farmer's Insurance, Best TV Repair
4,588
(Anchor) $6.00 (Inline) $10.00 - $12.00
$2.00
4
22580 Community Dr New Caney, TX 77357
57,342
1981
PROPERTY DESCRIPTION
Valley Ranch Town Center 1 11985 N Grand Pkwy E New Caney, TX 77357
FINANCIAL ANALYSIS
Property
BROOKSHIRE BROTHERS SHOPPING CENTER
MARKET OVERVIEW 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. © 2017 STRIVE
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LEASE COMPARABLES MAP
BROOKSHIRE BROTHERS SHOPPING CENTER
1
Valley Ranch Town Center
2
Food Town Retail
3
Porterwood SC
4
22580 Community Dr
FINANCIAL ANALYSIS
Brookshire Brothers SC
2
PROPERTY DESCRIPTION
1 4
MARKET OVERVIEW
3
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. © 2017 STRIVE
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LOCAL MAP
BROOKSHIRE BROTHERS SHOPPING CENTER
FINANCIAL ANALYSIS PROPERTY DESCRIPTION MARKET OVERVIEW 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. © 2017 STRIVE
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REGIONAL MAP
BROOKSHIRE BROTHERS SHOPPING CENTER
FINANCIAL ANALYSIS PROPERTY DESCRIPTION MARKET OVERVIEW 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. © 2017 STRIVE
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MARKET SUMMARY
BROOKSHIRE BROTHERS SHOPPING CENTER
FINANCIAL ANALYSIS PROPERTY DESCRIPTION
HOUSTON, TX Houston is the most populous city in the state of Texas and the fourth-most populous city in the United States. With a census-estimated 2013 population of 6.49 million people within a land area of 10,062 square miles, Houston is the largest city in the Southern United States, the seat of Harris County, and fifth-most populated MSA in the United States.
Nicknamed the Space City, Houston is a global city, with strengths in business, international trade, entertainment, culture, media, fashion, science, sports, technology, education, medicine and research. The city has a population from various ethnic and religious backgrounds and a large and growing international community. Houston is considered to be the most diverse city in Texas and the United States. It is home to many cultural institutions and exhibits, which attract more than 7 million visitors a year to the Museum District. Houston has an active visual and performing arts scene in the Theater District and offers yearround resident companies in all major performing arts.
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. © 2017 STRIVE
MARKET OVERVIEW
Houston was founded in 1836 on land near the banks of Buffalo Bayou (now known as Allen’s Landing) and incorporated as a city on June 5, 1837. The city was named after former General Sam Houston, who was president of the Republic of Texas and had commanded and won at the Battle of San Jacinto 25 miles (40 km) east of where the city was established. The burgeoning port and railroad industry, combined with oil discovery in 1901, has induced continual surges in the city’s population. In the mid-twentieth century, Houston became the home of the Texas Medical Center— the world’s largest concentration of healthcare and research institutions—and NASA’s Johnson Space Center, where the Mission Control Center is located.
Houston is recognized worldwide for its energy industry—particularly for oil and natural gas—as well as for biomedical research and aeronautics. It is also leading in health care sectors and building oilfield equipment; only New York City is home to more Fortune 500 headquarters. The Port of Houston ranks first in the United States in international waterborne tonnage handled and second in total cargo tonnage handled.
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DEMOGRAPHIC STATISTICS
BROOKSHIRE BROTHERS SHOPPING CENTER
3 MILE
5 MILE
3,805 3,301 2,771 15.27% 19.13% 1,026
21,570 18,649 15,209 15.66% 22.62% 5,464
56,276 48,560 38,671 15.89% 25.57% 14,031
1,026 110 46 22 2 68 0
17,399 550 202 147 21 331 0
45,306 1,364 502 521 50 819 3
1,245 1,080 905 15.28% 19.34% 751 328 $63,908 $50,141
7,173 6,200 5,055 15.69% 22.65% 4,603 1,598 $65,159 $48,245
18,882 16,291 12,977 15.90% 25.54% 12,235 4,056 $70,567 $54,790
237 301 231 95 121 38 25 31
1,434 1,723 1,265 681 439 234 226 199
3,569 4,017 3,162 2,087 1,452 756 622 626
FINANCIAL ANALYSIS
1 MILE POPULATION 2022 Projection 2017 Estimate 2010 Census Growth 2017-2022 Growth 2010-2017 2017 Population Hispanic Origin
2017 POPULATION BY RACE
PROPERTY DESCRIPTION
White Black Am. Indian & Alaskan Asian Hawaiian & Pacific Island Other U.S. Armed Forces:
HOUSEHOLDS 2022 Projection 2017 Estimate 2010 Census Growth 2017 - 2022 Growth 2010 - 2017 Owner Occupied Renter Occupied 2017 Avg Household Income (National Avg - $75,558) 2017 Med Household Income (National Med - $53,889)
2017 HOUSEHOLDS BY HOUSEHOLDS INCOME
MARKET OVERVIEW
<$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 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. © 2017 STRIVE
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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.
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
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