BROWNSVILLE VILLAGE BROWNSVILLE, TX (MSA)
PRICING & FINANCIAL ANALYSIS
B R OWNSV ILLE V ILLAG E
*Brownsville Village must be purchased with Las Campanas, please contact Agent for details
Brownsville Village
Las Campanas
1304 Central Blvd Brownsville, TX 78526
2501 Paredes Line Rd Brownsville, TX 78526
OFFERING SUMMARY
OFFERING SUMMARY
Price Cap Rate
$1,027,000 7.00%
Price Cap Rate
Net Operating Income
$71,895
Net Operating Income
Price PSF
$86.30
Price PSF
Occupancy
100.0%
Occupancy
Year Built
2003
$3,300,000 5.40% $178,172 $119.22 57.2%
Year Built
Gross Leasable Area
11,900 SF
Gross Leasable Area
Lot Size
1.14 Acres
Lot Size
2001 27,679 SF 2.96 Acres
* Please see Las Campanas OM for more details
F I N A N C I A L A N A LY S I S
2
PRICING & FINANCIAL ANALYSIS
B R OWNSV ILLE V ILLAG E
PROJECTED INCOME & EXPENSES Base Rent - Occupied Space
CURRENT 100%
GROSS POTENTIAL RENT
PSF
EXPENSES
CURRENT
PSF
$84,400
$7.09
Real Estate Taxes
$16,475
$1.38
$84,400
$7.09
Insurance
$3,935
$0.33
Expense Reimbursements
CAM
CAM Recoveries
$8,200
$0.69
Janitorial
$4,200
$0.35
Management Fee Recoveries
$887
$0.07
Landscaping
$4,850
$0.41
Insurance Recoveries
$926
$0.08
HVAC R&M
$275
$0.02
Real Estate Tax Recoveries
$16,475
$1.38
Parking Lot Maintenance
$1,340
$0.11
Total Expense Reimbursements
$26,488
$2.23
Roof Repair
$395
$0.03
EFFECTIVE GROSS REVENUE
$110,888
$9.32
Admin Fees
$53
$0.00
$3,700
$0.31
$14,813
$1.24
$3,770
$0.32
$38,993
$3.28
HVAC Non Recov
Operating Expenses $14,813
$1.24
Total CAM
$3,770
$0.32
Management Fee
$3,935
$0.33
Total Expenses
$16,475
$1.38
Total Recoverable Expenses
$38,993
$3.28
Net Operating Income
$71,895
$6.04
Total CAM Management Fee Total Insurance Total Real Estate Taxes
Capitalization Rate Capital Reserves at $0.15 PSF Cash Flow before Debt Service Market Loan Cash Flow after Debt Service Cash-on-Cash Return
3.40%
3.40%
7.00% $1,785 $70,110 $54,034 $16,076 6.96%
F I N A N C I A L A N A LY S I S
3
RE NT RO L L
B R OWNSV ILLE V ILLAG E
Tenant
SQ FT
Suite
% of SQFT
Lease Dates
Minimum Rent
Recoveries
Total
Start
End
Annual
Monthly
PSF
Annual
PSF
Revenue
% of Revenue
MetroPCS
26-A
1,400
11.76%
12/13
12/19
$13,800
$1,150
$9.86
$4,152
$2.97
$17,952
16.19%
Pizza Patron
26-B
1,400
11.76%
05/04
05/20
$19,600
$1,633
$14.00
$4,152
$2.97
$23,752
21.42%
Dollar General
26-C
9,100
76.47%
04/03
08/23
$51,000
$4,250
$5.60
$18,184
$2.00
$69,184
62.39%
Total Count/GLA
3
11,900
100%
$84,400
$7,033
$110,888
100.00%
Occupied
3
11,900
100.0%
Available
0
0
0.0%
$7.09
11,900
100.0%
Total Avg Rent
$26,488
ESTIMATED REIMBURSEMENT REVENUE
Tenant
Suite
SQ FT
% of SQFT
CAM
Management Fee
Insurance
Real Estate Taxes
Total Recovery
Monthly
PSF
Monthly
PSF
Monthly
PSF
Monthly
PSF
Monthly
PSF
MetroPCS
26-A
1,400
11.76%
$109
$0.93
$37
$0.32
$39
$0.33
$162
$1.38
$346
$2.97
Pizza Patron
26-B
1,400
11.76%
$109
$0.93
$37
$0.32
$39
$0.33
$162
$1.38
$346
$2.97
Dollar General
26-C
9,100
76.47%
$465
$0.35
$0
$0.00
$0
$0.00
$1,050
$1.38
$1,515
$2.00
11,900
100%
$683
TOTALS
$74
$77
$1,373
$2,207
F I N A N C I A L A N A LY S I S
4
L E A SE PROVIS ION S
Tenant
Suite
B R OWNSV ILLE V ILLAG E
SQ FT
Base Rental Increases
Renewal Options
Date
PSF
Options
Date
PSF
User Restrictions & Exclusive Rights
Termination Rights
Sales Reporting
MetroPCS
26-A
1,400
-
-
1x3
1/1/2021
MKT
-
-
No
Pizza Patron
26-B
1,400
6/1/2019
$15.00
1x3
6/1/2020
$16.00
Exclusive use to operate a business to to sell Pizza.
If LL leases to another Pizza business the tenant can terminate with 30 days written notice or reduce rent by 50%.
No
Dollar General
26-C
9,100
-
-
3x5
8/31/2023 8/31/2028 8/31/2033
$6.70 $7.37 $8.11
Exclusive use to operate as a Dollar Store.
-
No
TOTAL
11,900
F I N A N C I A L A N A LY S I S
5
TE NA NT INF ORMAT I ON
B R OWNSV ILLE V ILLAG E
DBA
Pizza Patron
Entity on Lease
Pizza Rica, LP
Corporate/Franchise
Franchise
Locations
100+
Credit Rating
Private
Public/Private
Private
Line of Business
Pizza Patrón Inc. is a United States pizza chain headquartered in San Antonio, Texas with locations in Arizona, California, Illinois and Texas. In addition to the franchise’s 100 locations across the southwest, 40 more are currently under development.
DBA
Dollar General
Entity on Lease
Dolgencorp of Texas, Inc.
Corporate/Franchise
Franchise
Locations
14,000+
Credit Rating
S&P: BBB
Public/Private
NYSE: DG
Line of Business
Dollar General Corporation is an American chain of variety stores headquartered in Goodlettsville, Tennessee. Their stores deliver everyday low prices on items including food, snacks, health and beauty aids, cleaning supplies, family apparel, housewares, seasonal items, paper products and much more from America’s most trusted brands and products, along with Dollar General’s high-quality private brands.
DBA
MetroPCS
Entity on Lease
Sinity Enterprises, LLC
Corporate/Franchise
Franchise
Locations
Over 15,000 locations across America
Credit Rating
Not Rated
Public/Private
NYSE: PCS
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.
PROPERTY DESCRIPTION
6
I N VE S TMENT HI GHLI GHT S
B R OWNSV ILLE V ILLAG E
• Stabilized Asset: Brownsville Village is currently 100% occupied and has maintained an occupancy level of approximately 90% or higher for the last 15 years. It should be noted that this includes the time frame of the great recession of 2008 where most properties across the United States lost 30% of their occupancy or more. We have also been told Dollar General has plans to upgrade their store in the next 2-3 months with reorganized isles and new coolers in the back of the store. We expect this improvement to range between $100k and $200k in total cost to the tenant.
• Credit Tenants: 100% of the tenant line up at Brownsville Village includes nationally recognized tenants. This points to strong brand awareness and traffic flow. Although none of the tenants are required to report sales, we are told that this Dollar General is doing “far above average.”
• Strong Demographics: The city of Brownsville is on the United States/Mexico Border. The city of Matamoros is a 10 minute drive from Brownsville, TX. Therefore, Brownsville enjoys daily traffic from Mexican shoppers that is not counted in the United States or the Brownsville census. Like many boarder towns, Brownsville, Texas is a desirable market.
• Below Market Rents: The average rental rate at Brownsville Village is only $9.82 psf. Rental rates in the immediate area for like kind product are ranging from $10.00 to $17.00 psf.
PROPERTY DESCRIPTION
7
B R OWNSV ILLE V ILLAG E
Central Blvd
S I T E PL A N
PROPERTY DESCRIPTION
8
A E R I AL MA P
26,035 VPD
B R OWNSV ILLE V ILLAG E
EPISCOPAL DAY SCHOOL
BOCA C
RUSSELL ELEMENTARY SCHOOL
VD
14,926 VPD
CENTRAL
BLVD
HICA BL
HARMONY SCIENCE ACADEMY
PROPERTY DESCRIPTION
9
L E A SE COMPA RABLES
Property Brownsville Village ï‚« 1304 Central Blvd Brownsville, TX
1
1905 Central Blvd Brownsville, TX
B R OWNSV ILLE V ILLAG E
GLA
Yr Built/ Renovated Occupancy
11,900
Major Tenants
Available SF
Rental Rates
NNN
100.0%
Dollar General, Pizza Patron, Sinity Enterprises
0
$6.00 - $14.00
$2.97
4,400
2007
100.0%
Wingstop, Natural Y Mas
0
$17.00 - $20.00
$2.34
Price Village 2 1474 Price Rd Brownsville, TX
29,877
1970
95.9%
UPS Store, Riverside Day Care, Blazing Sports Care & Fitness
1,227
$13.00 - $15.00
$2.40
Southwinds Shopping Center 3 943 N Expy Brownsville, TX
38,575
1984
100.0%
Domino's Pizza, State Farm, San Antonio Shoemakers, La Placita
0
$11.00 - $14.00
$3.00
The Corner Shopping Center 4 2200 Boca Chica Blvd Brownsville, TX
55,000
1966
70.6%
Falcon Bank, Brownsville Eye Center, Essential Therapy,VP Digital, Excel Finance, All State, Rose Nails
16,150
$14.00-$16.00
$1.50
0
$8.00-$12.00
MG
9,269
$7.00 - $17.00
$4.34
North Park Plaza 5 814 N Expy Brownsville, TX
115,000
1981
100.0%
El Globo Supermarket, South Texas Oriental Market, Lupita's Bridal Boutique, K9 King Dog Grooming
Resaca Village 6 1601 E Price Brownsville, TX
173,667
1989 / 2014
94.7%
Harbor Freight Tools, Fallas, Big Lots, Family Dollar, Subway, CLS Plasma, Coqueta's Bridal
PROPERTY DESCRIPTION
10
L E A SE COMPA RABLES
B R OWNSV ILLE V ILLAG E
Brownsville Village 1
1905 Central Blvd
2
Price Village
3
Southwinds Shopping Center
4
The Corner Shopping Center
5
North Park Plaza
6
Resaca Village
6
3 2
1
4
5
PROPERTY DESCRIPTION
11
REG IONA L MA P
B R OWNSV ILLE V ILLAG E
This line is the Texas/Mexico border
PROPERTY DESCRIPTION
12
LO C AL MA P
B R OWNSV ILLE V ILLAG E
This line is the Texas/Mexico border
Gulf of Mexico
PROPERTY DESCRIPTION
13
M A R KET S U MMARY
B R OWNSV ILLE V ILLAG E
Brownsville, TX
OVERVIEW Brownsville, Texas is located at the southernmost tip of the state of Texas in the United States. It is on the northern bank of the Rio Grande river and directly north and across the border from Matamoros, Mexico. Brownsville is a major trading center and “maquiladora” or border zone manufacturing center for U.S. companies and an international seaport. There are Gulf Coast beach areas about 20 miles east of town at the mouth of the Rio Grande, notably South Padre Island, a favorite winter and spring-break destination Brownsville is the sixteenth-most populous city in the state of Texas with an estimated population of 183,046 in 2014. The 2014 U.S. Census Bureau estimate placed the Brownsville-Harlingen metropolitan area population at 420,392, making it the ninth most populous metropolitan area in the state of Texas. In addition, the international Matamoros–Brownsville Metropolitan Area was estimated to have a population of 1,136,995. Brownsville has been recognized as having one of the best pro-business climates in the United
States, and the city has been ranked among the least expensive places to live in the U.S. Brownsville’s urban area is one of the fastest growing in the United States, with the Port of Brownsville becoming a major economic hub for South Texas is recent years. The port, located 2 miles from the city and provides an important link between the road networks of nearby Mexico, and the Gulf Intracoastal Waterway of Texas. The city’s economy is based mainly on its international trade with Mexico through the North American Free Trade Agreement (NAFTA). In recent news, SpaceX is building the SpaceX South Texas Launch Site, a private space launch facility east of Brownsville on the Gulf Coast. The new launch facility is expected to draw $85 million to the city of Brownsville and eventually generate approximately $51 million in annual salaries from some 500 jobs created by 2024. The facility itself is projected to employ 75–100 full-time workers in the early years with up to 150 full-time employees/contractors by 2019.
PROPERTY DESCRIPTION
14
D E M OG RA PHIC STAT I ST I CS
B R OWNSV ILLE V ILLAG E
1 MILE
3 MILE
5 MILE
13,823 13,621 13,538 1.48% 0.61% 12,483
82,820 81,564 80,862 1.54% 0.87% 75,871
167,887 164,251 157,140 2.21% 4.53% 153,794
13,369 92 57 49 4 51 24
79,452 592 366 767 47 341 77
160,158 1,192 809 1,327 83 682 117
4,508 4,435 4,377 1.65% 1.33% 2,402 2,033 $50,403 $30,868
25,628 25,217 24,920 1.63% 1.19% 13,354 11,863 $47,354 $29,156
48,475 47,402 45,273 2.26% 4.70% 29,085 18,317 $49,534 $32,500
1,945 996 595 345 208 92 152 103
11,065 6,676 2,762 1,884 1,172 415 761 483
19,225 12,953 5,471 4,116 2,546 801 1,380 909
Population: 2022 Projection 2017 Estimate 2010 Census Growth 2017-2022 Growth 2010-2017 2017 Population Hispanic Origin
2017 Population by Race: 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 2017 Med Household Income
2017 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
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