HU
LAS CAMPANAS BROWNSVILLE, TX
Available
Club Exclusivo Tacqueria Siberia
Available
Available
GE
UP
SI
DE
PRICING & FINANCIAL ANALYSIS
LAS C AM PANAS
Las Campanas
Brownsville Village
2501 Paredes Line Rd Brownsville, TX 78526
1304 Central Blvd Brownsville, TX 78526
OFFERING SUMMARY
OFFERING SUMMARY
Price Cap Rate Net Operating Income Price PSF Occupancy Year Built Gross Leasable Area Lot Size
$3,300,000 5.40% $178,172 $119.22 57.2% 2001 27,679 SF 2.96 Acres
Price
$1,027,000
Cap Rate
7.00%
Net Operating Income
$71,895
Price PSF
$86.30
Occupancy
100.0%
Year Built
2003
Gross Leasable Area
11,900 SF
Lot Size
1.14 Acres
*Please see Brownsville Village OM for more details
F I N A N C I A L A N A LY S I S
2
PRICING & FINANCIAL ANALYSIS
LAS C AM PANAS
PROJECTED INCOME & EXPENSES Base Rent - Occupied Space GROSS POTENTIAL RENT
CURRENT
PSF
$235,678
$8.51
Real Estate Taxes
$235,678
$8.51
Insurance
Expense Reimbursements
EXPENSES
CURRENT
PSF
$64,424
$2.33
$6,671
$0.24
CAM
CAM Recoveries
$29,152
$1.05
Electric
$10,582
$0.38
Management Fee Recoveries
$7,155
$0.26
Water/Sewer
$1,066
$0.04
Insurance Recoveries
$3,819
$0.14
Trash Removal
$4,200
$0.15
Real Estate Tax Recoveries
$36,882
$1.33
Janitorial Services
$3,720
$0.13
Total Expense Reimbursements
$77,008
$2.78
Landscaping Maintenance
$7,740
$0.28
EFFECTIVE GROSS REVENUE
$312,686
$11.30
HVAC Maintenance
$1,575
$0.06
Parking Lot Maintenance
$3,075
$0.11
Operating Expenses $50,921
$1.84
Pest Control
$675
$0.02
$12,498
$0.45
Window Cleaning
$350
$0.01
$6,671
$0.24
Electrical Repairs
$189
$0.01
$64,424
$2.33
Plumbing Repairs
$2,589
$0.09
Total Recoverable Expenses
$134,514
$4.86
Roof Repair
$7,241
$0.26
Net Operating Income
$178,172
$6.44
Security
$1,649
$0.06
Professional Fees
$2,957
$0.11
$97
$0.00
$244
$0.01
$24
$0.00
$306
$0.01
$71
$0.00
Travel
$782
$0.03
Misc
$316
$0.01
$1,474
$0.05
$50,921
$1.84
$12,498
$0.45
$134,514
$4.86
Total CAM Management Fee Total Insurance Total Real Estate Taxes
4.00%
Advertising/Marketing Signs Postage Telephone Bank Charges
Vacancy Exp Total CAM Management Fee Total Expenses
4.00%
F I N A N C I A L A N A LY S I S
3
RE NT RO L L
Tenant
Spec's
LAS C AM PANAS
Suite
SQ FT
% of SQFT
Lease Dates
Minimum Rent
Recoveries
Total
Start
End
Annual
Monthly
PSF
Annual
PSF
Revenue
% of Revenue
50-A1
2,700
9.75%
12/05
09/21
$41,715
$3,476
$15.45
$13,121
$4.86
$54,836
17.54%
Mas Natural
50-A10
2,500
9.03%
01/11
02/21
$36,300
$3,025
$14.52
$12,149
$4.86
$48,449
15.49%
WingStop
50-A2
2,428
8.77%
02/02
01/22
$38,605
$3,217
$15.90
$11,800
$4.86
$50,405
16.12%
Club Exclusivo
50-A4
1,753
6.33%
11/03
MTM
$20,626
$1,719
$11.77
$8,519
$4.86
$29,146
9.32%
MC Taqueria Siberia
50-A6
1,950
7.05%
03/08
03/21
$31,688
$2,641
$16.25
$9,477
$4.86
$41,164
13.16%
Kiki's Restaurant
50-A9
2,500
9.03%
01/10
04/21
$41,375
$3,448
$16.55
$12,149
$4.86
$53,524
17.12%
Available
50-B1
2,500
9.03%
-
-
$0
$0
$0.00
$0
$0.00
$0
0.00%
Benedictus LLC
50-B10
2,015
7.28%
11/17
01/21
$25,369
$2,114
$12.59
$9,792
$4.86
$35,161
11.24%
Available
50-B2
3,050
11.02%
-
-
$0
$0
$0.00
$0
$0.00
$0
0.00%
Available
50-B9
6,283
22.70%
-
-
$0
$0
$0.00
$0
$0.00
$0
0.00%
Total Count/GLA
10
27,679
100%
$235,678
$19,640
$312,686
100.00%
Occupied
7
15,846
57.2%
Available
3
11,833
42.8%
$14.87
15,846
100.0%
Total Avg Rent
$77,008
F I N A N C I A L A N A LY S I S
4
ESTIMATED REIMBURSEMENT REVENUE
Tenant
Spec's
Suite
SQ FT
LAS C AM PANAS
% of SQFT
CAM
Management Fee
Insurance
Real Estate Taxes
Total Recovery
Monthly
PSF
Monthly
PSF
Monthly
PSF
Monthly
PSF
Monthly
PSF
50-A1
2,700
9.75%
$414
$1.84
$102
$0.45
$54
$0.24
$524
$2.33
$1,093
$4.86
Mas Natural
50-A10
2,500
9.03%
$383
$1.84
$94
$0.45
$50
$0.24
$485
$2.33
$1,012
$4.86
WingStop
50-A2
2,428
8.77%
$372
$1.84
$91
$0.45
$49
$0.24
$471
$2.33
$983
$4.86
Club Exclusivo
50-A4
1,753
6.33%
$269
$1.84
$66
$0.45
$35
$0.24
$340
$2.33
$710
$4.86
MC Taqueria Siberia
50-A6
1,950
7.05%
$299
$1.84
$73
$0.45
$39
$0.24
$378
$2.33
$790
$4.86
Kiki's Restaurant
50-A9
2,500
9.03%
$383
$1.84
$94
$0.45
$50
$0.24
$485
$2.33
$1,012
$4.86
Available
50-B1
2,500
9.03%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
Benedictus LLC
50-B10
2,015
7.28%
$309
$1.84
$76
$0.45
$40
$0.24
$391
$2.33
$816
$4.86
Available
50-B2
3,050
11.02%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
Available
50-B9
6,283
22.70%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
27,679
100%
$2,429
TOTALS
$596
$318
$3,074
$6,417
F I N A N C I A L A N A LY S I S
5
L E A SE PROVIS ION S
Tenant
Spec's
Suite
LAS C AM PANAS
SQ FT
Base Rental Increases
User Restrictions & Exclusive Rights
Renewal Options
Date
PSF
Options
Date
PSF
Termination Rights
Sales Reporting
50-A1
2,700
10/1/2018 10/1/2019 10/1/2020
$15.45 $15.91 $16.39
2x5
10/1/2021
MKT
LL will not during the term of lease or renewal lease to another tenant within 300ft of the tenant that operates as a package store
-
Yes
Mas Natural
50-A10
2,500
3/1/2018 3/1/2020
$14.52 $14.88
1x5
3/1/2021
MKT
-
By year end 2018 Tenant has right to invest in tenant improvement equal to or greater than 4 months half-rent. If tenant does so, LL will allow tenant to pay half rent after TI completion.
Yes
WingStop
50-A2
2,428
2/1/2019 2/1/2021
$15.90 $16.40
1x5
2/1/2022
$17.22
-
-
-
Club Exclusivo
50-A4
1,753
-
-
-
-
-
-
-
-
MC Taqueria Siberia
50-A6
1,950
4/1/2019
$16.25
1x5
4/1/2021
MKT
-
-
Yes
Kiki's Restaurant
50-A9
2,500
5/1/2018 5/1/2019 5/1/2020
$16.55 $17.05 $17.56
1x5
5/1/2021
MKT
-
-
Yes
Available
50-B1
2,500
-
-
-
-
-
-
-
-
Benedictus LLC
50-B10
2,015
2/1/2019 2/1/2020
$12.59 $13.93
-
-
-
-
-
Yes
Available
50-B2
3,050
-
-
-
-
-
-
-
-
Available
50-B9
6,283
-
-
-
-
-
-
-
-
TOTAL
27,679
F I N A N C I A L A N A LY S I S
6
TE NA NT INF ORMAT I ON
LAS C AM PANAS
DBA
Wingstop
Entity on Lease
Wingstop Restaurants, Inc.
Corporate/Franchise
Corporate
Locations
1,000+
Credit Rating
S&P: A-
Public/Private
NASDAQ: WING
Line of Business
Wingstop Restaurants, Inc., is a chain of nostalgic, aviation-themed restaurants where the sole focus is on chicken wings. Wingstop locations are decorated following a 1930s and 1940s “pre-jet� aviation theme. The restaurant chain was founded in 1994 in Garland, Texas, and began offering franchises in 1998. Since then, Wingstop has grown into a chain with more than 650 restaurants either open or in development. The chain has its headquarters in Dallas, Texas.
DBA
Feldmans
Entity on Lease
Specs Family Partners, Ltd.
Corporate/Franchise
Corporate
Locations
15+
Credit Rating
Not Rated
Public/Private
Private
Line of Business
Feldmans offers the finest wine, spirits, beer, cigars, and finest foods. They also have a full service deli kitchen which compliments the store, as well as organic food , natural snacks, toiletry products, and even a florist.
PROPERTY DESCRIPTION
7
I N VE S TMENT HI GHLI GHT S
LAS C AM PANAS
• Prime Location: The Property sits right off of the main thoroughfare in Brownsville, three block from Walmart Supercenter and across Ruben M Torres Sr Blvd from HEB Plus. Our understanding is most HEB Plus stores do over $100 million in annual sales volume. • Value-Add Opportunity: The Property is currently 57.2% occupied, providing investors with a current cash flow while offering potential upside through the lease-up of the remaining 11,833 square feet. • Outstanding Tenant Longevity: Las Campanas has seen high tenant retention with 56% of the tenants being at the Property for 10 years or more. This tenant base survived the recent recession providing investors with a stable cash flow stream and a strong platform to grow income at the Property. • Growing Demographics: The population in a three mile radius of The Property is more than 184,000 people. It has grown more than 5% since 2010, with more growth projected in the near future. 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. • Massive rent increases: The current landlord has done a superior job in structuring the current leases, as almost 89% of the in place leases have scheduled increases in the base term. This fact virtually guarantees an increase in cash flow without any additional lease up. • Below Market Rents: The average rental rate at Las Campanas is only $14.87 psf. Rental rates in the immediate area for like kind product are ranging from $10.00 to $27.00 psf. PROPERTY DESCRIPTION
8
S I T E PL A N
LAS C AM PANAS
Tacqueria Club Siberia Exclusivo
Available
Available
Available
PROPERTY DESCRIPTION
9
A E R I AL MA P
LAS C AM PANAS
0 71, 00 D VP SUNRISE MALL RUBEN M TOR
RES SR BLVD
31,640 V PD
PROPERTY DESCRIPTION
10
L E A SE COMPA RABLES
Property
LAS C AM PANAS
GLA
Yr Built/ Renovated Occupancy
Major Tenants
Available SF
Rental Rates
NNN
Las Campanas Shopping Center ï‚« 2501 Paredes Line Rd Brownsville, TX
27,679
2002
57.2%
Spec's, Mas Natural, WingStop, Kiki's Restaurant
11,833
$11.00 - $15.00
$5.00
Domain Shopping Center 1 2355 N Expwy Brownsville, TX
10,670
2017
100.0%
T-Mobile, James Avery Jewelry, The Pizzeria, Just A Cut
0
$20.00-$27.00
$7.02
4,400
2007
100.0%
Wingstop, Natural Y Mas
0
$17.00 - $20.00
$2.34
Resaca Village 3 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
9,269
$7.00 - $17.00
$4.34
1900 N Expy Brownsville, TX
15,000
1995
73.3%
Chapparal Club, El Patron Taqueria, The Bar, Chaps, FMC Dialtsis, Great Xpress Cuts, LV Imaging
4,000
$11.00-$16.00
$3.50
100.0%
El Globo Supermarket, South Texas Oriental Market, Lupita's Bridal Boutique, K9 King Dog Grooming
0
$8.00-$12.00
MG
2
4
1905 Central Blvd Brownsville, TX
3777 N Expy 5 Brownsville, TX
115,000
1981
PROPERTY DESCRIPTION
11
L E A SE COMPA RABLES
LAS C AM PANAS
Las Campanas Shopping Center 1
Domain Shopping Center
2
1905 Central Blvd
3
Resaca Village
4
1900 N Expressway
5
3777 N Expressway
5
1
4
3
2
PROPERTY DESCRIPTION
12
REG IONA L MA P
LAS C AM PANAS
This line is the Texas/Mexico border
PROPERTY DESCRIPTION
13
LO C AL MA P
LAS C AM PANAS
This line is the Texas/Mexico border
PROPERTY DESCRIPTION
14
M A R KET S U MMARY
LAS C AM PANAS
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
15
D E M OG RA PHIC STAT I ST I CS
LAS C AM PANAS
1 MILE
3 MILE
5 MILE
14,081 13,755 13,046 2.37% 5.43% 12,292
99,956 97,388 91,033 2.64% 6.98% 89,488
189,151 184,872 175,907 2.31% 5.10% 173,179
13,101 126 51 401 7 69 0
94,669 696 448 1,101 47 427 90
180,249 1,364 919 1,449 93 798 160
4,485 4,377 4,137 2.47% 5.80% 2,666 1,711 $66,763 $48,488
29,974 29,183 27,202 2.71% 7.28% 18,398 10,786 $56,184 $38,595
53,996 52,749 50,098 2.36% 5.29% 33,016 19,733 $50,341 $33,587
1,152 1,117 618 648 387 101 203 153
10,192 7,663 3,858 3,116 1,982 656 997 718
20,862 14,425 6,395 4,669 2,846 917 1,612 1,024
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
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 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