CY SPRING PLAZA CYPRESS, TX (HOUSTON MSA)
PRI CING & F INAN CI AL AN ALYSI S
C Y SP R ING P LAZ A
Cy Spring Plaza 20220 FM 529 Cypress, TX 77433
CY SPRING PLAZA AS-IS Price Net Operating Income Price PSF
CY SPRING PLAZA PROFORMA $4,200,000 $106,083 $204.46
Price Cap Rate Proforma NOI
Occupancy
38.1%
Price PSF
Year Built
2007
Occupancy
Gross Leasable Area Lot Size
20,542 SF 2.06 Acres
Proforma Cash on Cash*
$4,200,000 8.52% $357,733 $204.46 100.0% 17.19%
*Cash on cash return based on 75% LTV, 3.85% interest rate, 30 year amoritization.
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 - AS-IS
PROJECTED INCOME & EXPENSES Base Rent - Occupied Space
38%
GROSS POTENTIAL RENT
C Y SP R ING P LAZ A
CURRENT
PSF
$154,296
$7.51
$154,296
$7.51
EXPENSES
CURRENT
PSF
Real Estate Taxes
$42,178
$2.05
Insurance
$10,134
$0.49
CAM
Expense Reimbursements Real Estate Tax Recoveries
$16,059
$0.78
Landscape Services
$6,000
$0.29
Insurance Recoveries
$3,858
$0.19
Utilities
$9,372
$0.46
CAM Recoveries
$6,742
$0.33
Waste
$2,337
$0.11
Management Recoveries
$2,980
$0.15
Total Expense Reimbursements
$29,639
$1.44
Total CAM
$17,709
$0.86
EFFECTIVE GROSS REVENUE
$183,930
$8.95
Management Fee
$7,826
$0.38
$77,847
$3.79
Total Expenses
Operating Expenses Total Real Estate Taxes
$42,178
$2.05
Total Insurance
$10,134
$0.49
Total CAM
$17,709
$0.86
$7,826
$0.38
$77,847
$3.79
$106,083
$5.16
Management Fee Total Recoverable Expenses Net Operating Income
4.3%
4.3%
For Financing Options, Please Contact: Greg Holley | Managing Partner High St Capital (O) 469-998-7200 | (C) 714.514.2990 gholley@highstcapital.com
F I N A N C I A L A N A LY S I S
3
RE NT RO L L - AS-IS
Tenant
C Y SP R ING P LAZ A
Suite
SQ FT
% of SQFT
Lease Dates
Minimum Rent
Recoveries
Start
End
Annual
Monthly
PSF
Annual
% of Revenue
Redeemed Christian
130
4,281
20.84%
05/19
04/24
$81,336
$6,778
$19.00
$16,223
53.04%
Ridges Barber N Beauty
140
1,540
7.50%
01/19
12/24
$30,960
$2,580
$20.10
$5,836
20.00%
Roy's Breakfast
170
2,000
9.74%
10/19
09/24
$42,000
$3,500
$21.00
$7,579
26.95%
Available
120
9,117
44.38%
-
-
-
-
-
-
0.00%
Available
150
3,604
17.54%
-
-
-
-
-
-
0.00%
Total Count/GLA
5
20,542
100%
Totals
$154,296
$12,858
$29,639
100.00%
Occupied
3
7,821
38.1%
Available
2
12,721
61.9%
F I N A N C I A L A N A LY S I S
4
E S TI MATED REIMBUR SEMEN T R EVEN U E - AS-IS
Tenant
Suite
SQ FT
% of SQFT
C Y SP R ING P LAZ A
Real Estate Taxes
Insurance
CAM
Management Fee
Total Recovery
Monthly
PSF
Monthly
PSF
Monthly
PSF
Monthly
PSF
Monthly
PSF
Redeemed Christian
130
4,281
20.84%
$732
$2.05
$176
$0.49
$308
$0.86
$136
$0.38
$1,352
$3.79
Ridges Barber N Beauty
140
1,540
7.50%
$264
$2.05
$63
$0.49
$111
$0.86
$49
$0.38
$486
$3.79
Roy's Breakfast
170
2,000
9.74%
$342
$2.05
$82
$0.49
$144
$0.86
$63
$0.38
$632
$3.79
Available
120
9,117
44.38%
-
-
-
-
-
-
-
-
-
-
Available
150
3,604
17.54%
-
-
-
-
-
-
-
-
-
-
20,542
100%
$1,338
Totals
$322
$562
$248
$2,470
F I N A N C I A L A N A LY S I S
5
PRI CING & F INAN CI AL AN ALYSI S - PROFORMA
PROJECTED INCOME & EXPENSES Base Rent - Occupied Space
100%
GROSS POTENTIAL RENT
C Y SP R ING P LAZ A
CURRENT
PSF
$357,728
$17.41
$357,728
$17.41
EXPENSES
CURRENT
PSF
Real Estate Taxes
$42,178
$2.05
Insurance
$10,134
$0.49
CAM
Expense Reimbursements Real Estate Tax Recoveries
$42,178
$2.05
Landscape Services
$6,000
$0.29
Insurance Recoveries
$10,134
$0.49
Utilities
$9,372
$0.46
CAM Recoveries
$17,709
$0.86
Waste
$2,337
$0.11
Management Recoveries
$7,826
$0.38
$77,847
$3.79
Total CAM
$17,709
$0.86
$435,580
$21.20
Management Fee
$7,826
$0.38
$77,847
$3.79
Total Expense Reimbursements EFFECTIVE GROSS REVENUE
Total Expenses
Operating Expenses Total Real Estate Taxes
$42,178
$2.05
Total Insurance
$10,134
$0.49
Total CAM
$17,709
$0.86
$7,826
$0.38
Total Recoverable Expenses
$77,847
$3.79
Net Operating Income
$357,733
$17.41
Management Fee
4.1%
4.1%
For Financing Options, Please Contact: Greg Holley | Managing Partner High St Capital (O) 469-998-7200 | (C) 714.514.2990 gholley@highstcapital.com
F I N A N C I A L A N A LY S I S
6
RE NT RO L L - PROFORMA
Tenant
C Y SP R ING P LAZ A
Suite
SQ FT
% of SQFT
Lease Dates
Minimum Rent
Recoveries
Start
End
Annual
Monthly
PSF
Annual
% of Revenue
Redeemed Christian
130
4,281
20.84%
05/19
04/24
$81,339
$6,778
$19.00
$16,223
22.40%
Ridges Barber N Beauty
140
1,540
7.50%
01/19
12/24
$30,960
$2,580
$20.10
$5,836
8.45%
Roy's Breakfast
170
2,000
9.74%
10/19
09/24
$42,000
$3,500
$21.00
$7,579
11.38%
Proforma Tenant
120
9,117
44.38%
03/22
02/27
$136,755
$11,396
$15.00
$34,550
39.33%
Proforma Tenant
150
3,604
17.54%
03/22
02/27
$66,674
$5,556
$18.50
$13,658
18.44%
Total Count/GLA
5
20,542
100%
Totals
$357,728
$29,811
$77,847
100.00%
Occupied
5
20,542
100.0%
Available
0
0
0.0%
F I N A N C I A L A N A LY S I S
7
E S TI MATED REIMBUR SEMEN T R EVEN U E - PROFORMA
Tenant
Suite
SQ FT
% of SQFT
Real Estate Taxes
C Y SP R ING P LAZ A
Insurance
CAM
Management Fee
Total Recovery
Monthly
PSF
Monthly
PSF
Monthly
PSF
Monthly
PSF
Monthly
PSF
Redeemed Christian
130
4,281
20.84%
$732
$2.05
$176
$0.49
$308
$0.86
$136
$0.38
$1,352
$3.79
Ridges Barber N Beauty
140
1,540
7.50%
$264
$2.05
$63
$0.49
$111
$0.86
$49
$0.38
$486
$3.79
Roy's Breakfast
170
2,000
9.74%
$342
$2.05
$82
$0.49
$144
$0.86
$63
$0.38
$632
$3.79
Proforma Tenant
120
9,117
44.38%
$1,560
$2.05
$375
$0.49
$655
$0.86
$289
$0.38
$2,879
$3.79
Proforma Tenant
150
3,604
17.54%
$617
$2.05
$148
$0.49
$259
$0.86
$114
$0.38
$1,138
$3.79
20,542
100%
$3,515
Totals
$845
$1,476
$652
$6,487
F I N A N C I A L A N A LY S I S
8
L E A SE PROVIS ION S
Tenant
C Y SP R ING P LAZ A
Suite
Base Rental Increases
SQ FT
User Restrictions & Exclusive Rights
Renewal Options
Date
PSF
Options
Date
PSF
Redeemed Christian Church
130
4,281
4/1/2023
$21.00
1x5
4/1/2024
MKT
Church
Ridges Barber N Beauty
140
1,540
1/1/2023
$21.00
1x5
1/1/2025
$22.00
Barbershop / Hair Salon
Roy's Breakfast
170
2,000
10/1/2022 10/1/2023
$22.00 $23.00
1x5
4/4/2024
MKT
Breakfast Restaurant
Available
120
9,117
-
-
-
-
-
Available
150
3,604
-
-
-
-
-
Totals
20,542
F I N A N C I A L A N A LY S I S
9
I N VE S TMENT HI GHLI GHT S
C Y SP R ING P LAZ A
• Value-Add Opportunity – 38% Occupied • Below Replacement Cost – offered at $204/SF • Second Generation Event Center Space – 9,117 SF vacant suite with a recent $500,000 event center/ ballroom build-out • Fiesta Mart Shadow Anchored – suitable anchor for the area as 5-mile Demographics are nearly 43% Hispanic • Located 1.5 miles from Cypress Park High School (2,711 students) – construction completed in 2016 • Marvida Master-Planned Community – Houstonbased Land Tejas has begun the pre-sale of 2,500 homes in their 856-acre master-planned community located just north of FM 529 and west of Fry Rd. • Average Household Income of $105,555 within a 5-Mile Radius • Less than 5 minutes (2.5 miles) from Grand Parkway – the newest major beltway around Houston • Surrounding National Retailers Include: Fiesta Mart, Goodwill, Dollar Tree, O’Reilly Auto Parts, Firestone Auto Care, CVS, Walgreens, 7-Eleven, and many more.
PROPERTY DESCRIPTION
10
Roy’s Breakfast
Available
Ridges Barber N Beauty
Redeemed Christian Chruch
Available
S I T E PL A N C Y SP R ING P LAZ A
FM 529 PROPERTY DESCRIPTION
11
A E R I AL MA P
C Y SP R ING P LAZ A
CYPRESS SPRINGS HIGH SCHOOL
HOPPER MIDDLE SCHOOL
ROWE MIDDLE SCHOOL
MARVIDA MASTERPLANNED COMMUNITY
RD
26 ,
31 4
VP
D
F
RY
CYPRESS PARK HIGH SCHOOL
30,100 VPD
FM 529
MARKET OVERVIEW
12
LO C AL MA P
C Y SP R ING P LAZ A
MARKET OVERVIEW
13
REG IONA L MA P
C Y SP R ING P LAZ A
MARKET OVERVIEW
14
M A R KET S U MMARY
C Y SP R ING P LAZ A
Houston, TX
OVERVIEW Houston is the most populous city in the state of Texas and the fourth-most populous city in the United States, with an estimated 2019 population of 2,320,268. The seat of Harris County, Houston is the principal city of the Greater Houston metropolitan area, which is the fifth most populous MSA in the United States (2019 population estimate of 7,066,141). With a total area of over 637 square miles, Houston is the eighth most expansive city in the United States.
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.
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.
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 year-round resident companies in all major performing arts.
Q U I C K S TAT S
1 2nd No. 3 4th 22 st
Most-Populous City in the State of Texas
Second-Best U.S. Cities for Job Growth (CBS News)
Third-Best American City of the Future (Financial Times)
Most-Populous City in the United States
Fortune 500 Companies Call Houston Home (Fortune) MARKET OVERVIEW
15
D E M OG RA PHIC STAT I ST I CS
C Y SP R ING P LAZ A
1 Mile
3 Mile
5 Mile
Population
1 Mile
3 Mile
5 Mile
Households:
2010 Population
17,761
83,172
212,308
2010 Households
5,050
23,949
64,658
2020 Population
22,905
121,073
294,597
2020 Households
6,605
35,615
90,847
2025 Population Projection
23,845
127,843
309,398
2025 Household Projection
6,889
37,700
95,560
Annual Growth 2010-2020
2.60%
4.10%
3.50%
Annual Growth 2010-2020
2.90%
4.70%
3.90%
Annual Growth 2020-2025
0.80%
1.10%
1.00%
Annual Growth 2020-2025
0.90%
1.20%
1.00%
Median Age
30.3
31
32.3
Owner Occupied
5,743
31,299
77,741
Bachelor's Degree or Higher
26%
30%
33%
Renter Occupied
1,146
6,401
17,820
0
1
75
3.5
3.4
3.3
2
2
2
$236.6M
$1.3B
$3.4B
Avg Household Income
$93,012
$102,717
$105,555
Median Household Income
$76,907
$83,990
$85,711
< $25,000
467
2,789
8,211
U.S. Armed Forces
Avg Household Size Avg Household Vehicles
Population by Race
Total Consumer Spending
White
14,966
81,347
202,374
Black
5,650
25,766
53,080
211
1,220
2,819
1436
9,531
28,754
Hawaiian & Pacific Islander
30
157
382
Two or More Races
612
3,051
7,189
$25,000 - 50,000
1290
6,547
14,715
11,351
56,953
126,722
$50,000 - 75,000
1458
6,288
16,355
$75,000 - 100,000
1147
6,072
14,338
American Indian/Alaskan Native Asian
Hispanic Origin
Housing Median Home Value Median Year Built
Demographic data © CoStar 2021
Income
$166,428
$185,061
$196,980
$100,000 - 125,000
886
4,654
11,805
2005
2006
2004
$125,000 - 150,000
589
2,916
7,584
$150,000 - 200,000
379
3,341
9,430
$200,000+
389
3,008
8,411
MARKET OVERVIEW
16
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 tenant’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: ӽ that the owner will accept a price less than the written asking price; ӽ that the buyer/tenant will pay a price greater than the price submitted in a written offer; and ӽ 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