MIDDLETOWN PLAZA GEORGETOWN, TX (AUSTIN MSA)
PRICING & FINANCIAL ANALYSIS
MI DD LE TOWN P LAZ A SC - G EO R G E TOWN, T X
Middletown Plaza SC 600 N. Austin Avenue Georgetown, TX 78626
OFFERING SUMMARY Price As Is Net Operating Income Pro Forma Cap Rate Pro Forma Net Operating Income
$1,000,000 $47,099 10.15% $101,475
Price PSF
$197.08
Occupancy
100.0%
Year Built Gross Leasable Area Lot Size
1999 5,074 SF 0.62 Acres
F I N A N C I A L A N A LY S I S
2
PRICING & FINANCIAL ANALYSIS
MI DD LE TOWN P LAZ A SC - G EO R G E TOWN, T X
As Is INCOME & EXPENSES - AS IS Base Rent - Occupied Space GROSS POTENTIAL RENT
CURRENT 100%
PSF
CURRENT
PSF
$59,280
$11.68
Real Estate Taxes
$13,255
$2.61
$59,280
$11.68
Insurance
$3,235
$0.64
$3,600
$0.71
Expense Reimbursements CAM Recoveries
EXPENSES
CAM $12,004
$2.37
Landscaping
$0
$0.00
Repairs
$1,718
$0.34
$3,235
$0.64
Legal
$1,716
$0.34
Real Estate Tax Recoveries
$13,255
$2.61
Utilities
$14,056
$2.77
Total Expense Reimbursements
$28,495
$5.62
Supplies
$638
$0.13
EFFECTIVE GROSS REVENUE
$87,775
$17.30
Total CAM
$21,728
$4.28
$2,453
$0.48
$40,671
$8.02
Management Fee Recoveries Insurance Recoveries
Operating Expenses
Management Fee
Total CAM
$21,728
$4.28
Management Fee
$2,453
$0.48
Total Insurance
$3,235
$0.64
Total Real Estate Taxes
$13,255
$2.61
Total Recoverable Expenses
$40,671
$8.02
Net Operating Income
$47,099
$9.28
Total Expenses
2.80%
F I N A N C I A L A N A LY S I S
3
RE NT RO L L
MI DD LE TOWN P LAZ A SC - G EO R G E TOWN, T X
As Is Tenant
Suite
SQ FT
% of SQFT
Lease Dates
Minimum Rent
Recoveries
Total
Start
End
Annual
Monthly
PSF
Annual
PSF
Revenue
% of Revenue
Thuan Pham
A
1,634
32.20%
08/17
07/22
$19,680
$1,640
$12.04
$9,118
$5.58
$28,798
32.81%
T's Blue Tattoo
C
980
19.31%
11/14
MTM
$10,800
$900
$11.02
$4,969
$5.07
$15,769
17.96%
Hair Express
D
760
14.98%
07/15
11/21
$9,600
$800
$12.63
$4,803
$6.32
$14,403
16.41%
Linda's Nails
E,F
1,700
33.50%
03/15
02/20
$19,200
$1,600
$11.29
$9,605
$5.65
$28,805
32.82%
Total Count/GLA
4
5,074
100%
Totals
$59,280
$4,940
$87,775
100.00%
Occupied
4
5,074
100.0%
Available
0
0
0.0%
$11.68
5,074
100.0%
Total Avg Rent
$28,495
F I N A N C I A L A N A LY S I S
4
TI TLE ESTIMATED REIMBURSEMENT REVENUE
Tenant
Suite
SQ FT
MI DD LE TOWN P LAZ A SC - G EO R G E TOWN, T X
% of SQFT
CAM
Management Fee
Insurance
Real Estate Taxes
Total Recovery
Monthly
PSF
Monthly
PSF
Monthly
PSF
Monthly
PSF
Monthly
PSF
Thuan Pham
A
1,634
32.20%
$317
$2.33
$0
$0.00
$87
$0.64
$356
$2.61
$760
$5.58
T's Blue Tattoo
C
980
19.31%
$149
$1.82
$0
$0.00
$52
$0.64
$213
$2.61
$414
$5.07
Hair Express
D
760
14.98%
$194
$3.07
$0
$0.00
$40
$0.64
$165
$2.61
$400
$6.32
Linda's Nails
E,F
1,700
33.50%
$340
$2.40
$0
$0.00
$90
$0.64
$370
$2.61
$800
$5.65
5,074
100%
$1,000
TOTALS
$0
$270
$1,105
$2,375
L E A SE PROVIS ION S
Tenant
Suite
SQ FT
Base Rental Increases
Renewal Options
Sales Reporting
Date
PSF
Options
Date
PSF
Thuan Pham
A
1,634
-
-
2x 3 Year
8/1/2022 8/1/2025
$12.48 $12.85
No
T's Blue Tattoo
C
980
-
-
-
-
-
No
Hair Express
D
760
-
-
1 x 2 Year
12/1/2021
$13.26
No
Linda's Nails
E,F
1,700
-
-
-
-
-
No
TOTAL
5,074
F I N A N C I A L A N A LY S I S
5
PRICING & FINANCIAL ANALYSIS
MI DD LE TOWN P LAZ A SC - G EO R G E TOWN, T X
Pro Forma INCOME & EXPENSES Base Rent - Occupied Space GROSS POTENTIAL RENT
PRO FORMA 100%
PSF
EXPENSES
PRO FORMA
PSF
$101,480
$20.00
Real Estate Taxes
$13,255
$2.61
$101,480
$20.00
Insurance
$3,235
$0.64
$3,600
$0.71
Expense Reimbursements
CAM
CAM Recoveries
$21,728
$4.28
Landscaping
Management Fee Recoveries
$4,007
$0.79
Repairs
$1,718
$0.34
Insurance Recoveries
$3,235
$0.64
Legal
$1,716
$0.34
Real Estate Tax Recoveries
$13,255
$2.61
Utilities
$14,056
$2.77
Total Expense Reimbursements
$42,225
$8.32
Supplies
$638
$0.13
$28.32
Total CAM
$21,728
$4.28
$4,007
$0.79
$42,225
$8.32
EFFECTIVE GROSS REVENUE
$143,700
Operating Expenses
Management Fee
Total CAM
$21,728
$4.28
Management Fee
$4,007
$0.79
Total Insurance
$3,235
$0.64
Total Real Estate Taxes
$13,255
$2.61
Total Recoverable Expenses
$42,225
$8.32
Net Operating Income
$101,475
$20.00
Total Expenses
2.80%
F I N A N C I A L A N A LY S I S
6
RE NT RO L L
MI DD LE TOWN P LAZ A SC - G EO R G E TOWN, T X
Pro Forma Tenant
Suite
SQ FT
% of SQFT
Lease Dates
Minimum Rent
Recoveries
Total
Start
End
Annual
Monthly
PSF
Annual
PSF
Revenue
% of Revenue
Thuan Pham
A
1,634
32.20%
08/17
07/22
$32,680
$2,723
$20.00
$13,598
$8.32
$46,278
32.20%
T's Blue Tattoo
C
980
19.31%
11/14
MTM
$19,600
$1,633
$20.00
$8,155
$8.32
$27,755
19.31%
Hair Express
D
760
14.98%
07/15
11/21
$15,200
$1,267
$20.00
$6,325
$8.32
$21,525
14.98%
Linda's Nails
E,F
1,700
33.50%
03/15
02/20
$34,000
$2,833
$20.00
$14,147
$8.32
$48,147
33.50%
Total Count/GLA
4
5,074
100%
Totals
$101,480
$8,457
$143,705
100.00%
Occupied
4
5,074
100.0%
Available
0
0
0.0%
$20.00
5,074
100.0%
Total Avg Rent
$42,225
F I N A N C I A L A N A LY S I S
7
TE NA NT INF ORMAT I ON
MI DD LE TOWN P LAZ A SC - G EO R G E TOWN, T X
DBA
Misu Sushi
Entity on Lease
Thuan M. Pham
Locations
1
Public/Private
Private
Line of Business
Misu Sushi is a sushi restaurant that offers dining and takeout in Georgetown. Misu Sushi is a cornerstone in the Georgetown community and has been recognized for its outstanding Sushi cuisine, excellent service and friendly staff. Misu Sushi is known for its modern interpretation of classic dishes and its insistence on only using high quality fresh ingredients.
DBA
Hair Express
Entity on Lease
Hair Express
Locations
1
Public/Private
Private
Line of Business
Hair Express in Georgetown, TX, is a salon owned and operated by Moe and Sue Mirzai, who have over 45 years of combined experience in hairstyling. Hair Express places high importance that its clients feel confident and comfortable throughout their experience. A thorough consultation is always part of the appointment. Hair Express also offers custom cuts, colors and styles that suits its clients’ lifestyles and aesthetics.
PROPERTY DESCRIPTION
8
I N VE S TMENT HI GHLI GHT S
MI DD LE TOWN P LAZ A SC - G EO R G E TOWN, T X
• Below-Market Rents: The Average Rental Rate at Middletown Plaza is $11.68/SF, While Market Rent in the Immediate Trade Area is Leasing at $22/SF. • Strong Location: The Property is Located On North Austin Ave, a Major Thoroughfare Connecting Georgetown. Additionally, the Site has Convenient Access to all Parts of Central Texas Via I-35 and the 130 Toll. • G rowing Submarket: The Georgetown Retail Market has 3.3% Rental Growth in the Previous 12 Months and is Currently 96.2% Occupied. • Extremely High Traffic Counts: I-35 (106,726 VPD) and N Austin Ave (22,347 VPD) Providing an Exceptional Commerce Base. • Exceptional Demographics: The Surrounding Area has Experienced Population Growth Over 35% Since 2010. Average Household Income Within a 3-Mile Radius is $82,561. • Tremendous Trade Area: Surrounding National Retailers include Walmart, Home Depot, McDonalds, Papa Johns, KFC, Sonic, CVS, Starbucks, Regions Bank and Many More. PROPERTY DESCRIPTION
9
S I T E PL A N
MI DD LE TOWN P LAZ A SC - G EO R G E TOWN, T X
N AUSTIN AVE
W MORROW ST
PROPERTY DESCRIPTION
10
A E R I AL MA P
MI DD LE TOWN P LAZ A SC - G EO R G E TOWN, T X W IL LI AM
S
D
R ,6
97 V
PD
10
6,
72
6
VP
D
32
N AUSTIN AVE
22,347 VPD
Wolf Ranch Town Center
WILLIAMS ELEMENTARY SCHOOL
PURL ELEMENTARY SCHOOL
PROPERTY DESCRIPTION
11
L E A SE COMPA RABLES
Property Middletown Plaza ï‚« 600 N Austin Ave Georgetown, TX
MI DD LE TOWN P LAZ A SC - G EO R G E TOWN, T X
GLA
Yr Built/ Renovated Occupancy
Major Tenants
Available SF
Rental Rates
NNN
5,074
1999
100.0%
Misu Sushi, Hair Express
0
$11.00 - $12.00
$8.32
Market at Georgetown (Adjacent) 1 610 N Austin Ave Georgetown, TX
54,994
1999/2017
100.0%
Double Dave's, La Playa, Mattress One
0
$21.00 $23.00 (InLine)
$5.00
Republic Square 2 900 N Austin Ave Georgetown, TX
112,625
1974/2002
92.4%
Subway, Chipotle, Dollar Tree, Pizza Hut
8,579
$22.00 $30.00 (InLine)
$5.29
N Austin Ave Retail 3 103 N Austin Ave Georgetown, TX
7,650
1930/2012
100.0%
Gaston Salon, Hula Cowgirl Shaved Ice
0
$22.00 $26.00
$8.00
University Commons 4 603 W University Ave Georgetown, TX
37,451
2001
100.0%
Advance Auto Parts, Family Dollar Store, G-Pro Nails
0
$17.00-$20.00
$5.50
Georgetown Plaza 5 505 W University Ave Georgetown, TX
21,058
1985
66.2%
World Finance, Old Town Salon
7,122
$18.00-$22.00
$5.00
PROPERTY DESCRIPTION
12
L E A SE COMPA RABLES
MI DD LE TOWN P LAZ A SC - G EO R G E TOWN, T X
Middletown Plaza 1
Market at Georgetown (Adjacent)
2
Republic Square
3
N Austin Ave Retail
4
University Commons
5
Georgetown Plaza
2
1
3
4
5
PROPERTY DESCRIPTION
13
LO C AL MA P
MI DD LE TOWN P LAZ A SC - G EO R G E TOWN, T X
PROPERTY DESCRIPTION
14
REG IONA L MA P
MI DD LE TOWN P LAZ A SC - G EO R G E TOWN, T X
PROPERTY DESCRIPTION
15
M A R KET S U MMARY
MI DD LE TOWN P LAZ A SC - G EO R G E TOWN, T X
Austin, TX
OVERVIEW Austin, Texas is the capital of Texas and the seat of Travis County. Located in Central Texas, Austin is the 11th-most populous city in the United States and the fourth-most populous city in Texas. It was the third-fastest-growing large city in the nation from 2000 to 2006. Austin is also the second largest state capital in the United States. Austin had a July 1, 2013 population of 885,400 (U.S. Census Bureau estimate). The city is the cultural and economic center of the Austin–Round Rock metropolitan area, which had an estimated population of 1,883,051 as of July 1, 2013. Austin is considered to be a major center for high tech. The region’s rapid growth has led Forbes to rank the Austin metropolitan area #1 among all big cities for jobs for 2012 in their annual survey. The Wall Street Journal Marketwatch ranked the area Number One for growing businesses. By 2013, Austin ranked No. 14 on Forbes’ list of the Best Places for Business and Careers (directly below Dallas, No. 13 on the list). As a result of the
high concentration of high-tech companies in the region, Austin was strongly affected by the dotcom boom in the late 1990s and subsequent bust. Austin’s largest employers include the Austin Independent School District, the City of Austin, Dell, the U.S. Federal Government, Freescale Semiconductor (spun off from Motorola in 2004), IBM, St. David’s Healthcare Partnership, Seton Family of Hospitals, the State of Texas, the Texas State University, and the University of Texas at Austin. Other high-tech companies with operations in Austin include 3M, Apple, Hewlett-Packard, Google, Qualcomm, Inc., AMD, Applied Materials, Cirrus Logic, ARM Holdings, Cisco Systems, Electronic Arts, Flextronics, Facebook, eBay/PayPal, Bioware, Blizzard Entertainment, Hoover’s, Intel Corporation, National Instruments, Rackspace, RetailMeNot, Rooster Teeth, Spansion, Buffalo Technology, Silicon Laboratories, Xerox, Oracle, Hostgator, Samsung Group, HomeAway, and United Devices.
PROPERTY DESCRIPTION
16
D E M OG RA PHIC STAT I ST I CS
MI DD LE TOWN P LAZ A SC - G EO R G E TOWN, T X
1 Mile
3 Mile
5 Mile
2023 Projection
9,934
54,046
83,030
2018 Estimate
8,562
45,895
70,280
2010 Census
6,821
33,837
50,296
Population:
Growth 2018-2023
16.02%
17.76%
18.14%
Growth 2010-2018
25.52%
35.64%
39.73%
2,364
13,344
17,565
White
7,314
41,311
63,407
Black
2018 Population Hispanic Origin
2018 Population by Race: 838
2,388
3,123
Am. Indian & Alaskan
75
432
572
Asian
158
701
1,648
7
61
83
171
1,002
1,447
11
79
202
2023 Projection
3,090
18,472
28,987
2018 Estimate
2,634
15,747
24,665
2010 Census
2,001
11,942
18,338
Growth 2018 - 2023
17.31%
17.30%
17.52%
Growth 2010 - 2018
31.63%
31.86%
34.50%
1,154
9,733
17,272
Hawaiian & Pacific Island Other U.S. Armed Forces:
Households:
Owner Occupied
1,480
6,014
7,393
2018 Avg Household Income (National Avg - $75,558)
Renter Occupied
$68,645
$82,561
$94,026
2018 Med Household Income (National Avg - $53,889)
$58,403
$67,472
$75,453
<$25,000
488
2,474
3,308
$25,000 - $50,000
632
3,319
4,570
$50,000 - $75,000
679
3,035
4,398
$75,000 - $100,000
323
2,111
3,121
$100,000 - $125,000
166
1,904
3,350
2018 Households by Household Inc:
$125,000 - $150,000
222
1,199
2,286
$150,000 - $200,000
64
1,072
1,997
$200,000+
61
632
1,635
Demographic data © CoStar 2019
PROPERTY DESCRIPTION
17
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