South Gate Center - Kingsville, TX by STRIVE

SOUTH GATE CENTER KINGSVILLE, TX

PRI C I N G & FI N A NC IA L ANALYS IS

SO U T H G AT E C E NT E R - K ING SV ILLE , T X

South Gate Center 2353 S Brahma Blvd Kingsville, TX 78363

SOUTH GATE CENTER OFFERING SUMMARY

MAIN CENTER

Main Center Price

Cap Rate

$10,430,000

Price

FRESENIUS MEDICAL CARE $10,430,000 7.50%

Price

$2,045,000

Cap Rate

5.75%

Fresenius Price

$2,045,000

Net Operating Income

Total Price

$12,475,000

Price PSF

$61.01

Year Built

Occupancy

89.8%

Gross Leasable Area

$782,335

Year Built/Renovated

1982/2017

Gross Leasable Area

170,941 SF

Lot Size

Net Operating Income

Lot Size

$117,488 2014 9,399 SF 2.81 Acres

12.98 Acres

F I N A N C I A L A N A LY S I S

PRI C I N G & FI N A NC IA L ANALYS IS

SO U T H G AT E C E NT E R - K ING SV ILLE , T X

South Gate - Main Center 2353 S Brahma Blvd Kingsville, TX 78363

OFFERING SUMMARY Price Cap Rate Net Operating Income

$10,430,000 7.50% $782,335

Price PSF

$61.01

Occupancy

89.8%

Year Built/Renovated

1982/2017

Gross Leasable Area

170,941 SF

Lot Size

12.98 Acres

F I N A N C I A L A N A LY S I S

PRI C I N G & FI N A NC IA L ANALYS IS

PROJECTED INCOME & EXPENSES Base Rent - Occupied Space GROSS POTENTIAL RENT

100%

SO U T H G AT E C E NT E R - K ING SV ILLE , T X

CURRENT

PSF

$1,012,372

$5.61

$1,012,372

$5.61

Expense Reimbursements

EXPENSES

CURRENT

PSF

Real Estate Taxes

$156,099

$0.87

Insurance

$103,567

$0.57

CAM

$94,393

$0.52

$48,212

$0.27

$402,271

$2.23

Real Estate Taxes

$134,292

$0.74

Management Fee

Insurance

$89,099

$0.49

Total Expenses

CAM

$66,331

$0.37

$289,722

$1.61

GROSS POTENTIAL INCOME

$1,302,094

$7.22

EFFECTIVE GROSS REVENUE

$1,302,094

$7.22

Real Estate Taxes

($156,099)

($0.87)

Insurance

($103,567)

($0.57)

CAM

($94,393)

($0.52)

Management Fee

($48,212)

($0.27)

($402,271)

($2.23)

$899,823

$4.99

Total Expense Reimbursements

3.67%

Operating Expenses

Total Recoverable Expenses Net Operating Income

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

RE NT RO L L

Tenant

SO U T H G AT E C E NT E R - K ING SV ILLE , T X

Suite

SQ FT

% of SQFT

Lease Dates

Minimum Rent

Recoveries

Total

Start

End

Annual

Monthly

PSF

Annual

PSF

Revenue

% of Revenue

Iglesia Del Valle

3,700

2.05%

11/11

10/23

$9,960

$830

$2.69

$0.00

$9,960

0.76%

Hobby Lobby

52,483

29.10%

04/17

03/27

$223,053

$18,588

$4.25

$87,640

$1.67

$310,692

23.68%

Marshalls

20,140

11.17%

10/19

09/29

$161,120

$13,426

$8.00

$39,541

$1.96

$200,661

16.06%

Hibbett Sports

8,645

4.79%

12/06

11/26

$51,178

$4,265

$5.92

$14,695

$1.70

$65,873

5.02%

Harbor Freight

15,450

8.57%

09/20

11/30

$108,150

$9,013

$7.00

$30,333

$1.96

$138,483

10.55%

Dollar Tree

11,055

6.13%

02/13

01/23

$116,078

$9,673

$10.50

$22,283

$2.02

$138,361

10.54%

Factory Connection

4,917

2.73%

10/21

10/24

$35,157

$2,930

$7.15

$9,653

$1.96

$44,810

3.42%

Fresenius

9,399

5.21%

09/14

08/29

$117,488

$9,791

$12.50

$18,945

$2.02

$136,433

10.40%

Stef & Bec's

2,384

1.32%

08/20

07/22

$24,000

$2,000

$10.07

$0.00

$24,000

1.83%

Today Nail Spa

1,746

0.97%

10/13

05/25

$20,400

$1,700

$11.68

$0.00

$20,400

1.55%

Burkes

33,058

18.33%

02/22

01/32

$133,925

$11,160

$4.05

$66,633

$2.02

$200,558

15.28%

Available

12,600

6.99%

$0.00

0.00%

Available

1,563

0.87%

$0.00

0.00%

Available

3,200

1.77%

$0.00

0.00%

$11,863

$989

$0.00

$11,863

0.92%

Crown Castle Total Count/GLA

180,340

100%

Occupied

162,977

90.4%

Available

17,363

9.6%

$6.21

162,977

100.0%

Total Avg Rent

Totals

$1,012,371 $84,364

$289,722

$1,302,094 100.00%

F I N A N C I A L A N A LY S I S

PRI CING & F INAN CI AL AN ALYSI S

SO U T H G AT E C E NT E R - K ING SV ILLE , T X

Fresenius Medical Care 2213 S Brahma Blvd Kingsville, TX 78363

OFFERING SUMMARY Price Cap Rate Net Operating Income Year Built Gross Leasable Area Lot Size

ANNUALIZED OPERATING DATA $2,045,000

Commencement

Annual

Increase

1-5

9/1/2014

$112,788

$117,488

6-10

9/1/2019

$117,488

4.17%

2014

11-15

9/1/2024

$124,537

6.00%

9,399 SF

Option 1

9/1/2029

$136,286

9.43%

2.81 Acres

Option 2

9/1/2034

$140,985

3.45%

5.75%

Year(s)

NET OPERATING INCOME

$117,488

LEASE SUMMARY Lease Term Lease Commencement

15 Years 9/1/2014

Lease Expiration

8/31/2029

Remaining Term

9 Years

Lease Type Roof & Structure Options

NNN Tenant 2 x 5 Years

F I N A N C I A L A N A LY S I S

TE NA NT INF ORMAT I ON

SO U T H G AT E C E NT E R - K ING SV ILLE , T X

DBA

Hobby Lobby

Locations

900+

Public/Private

Private

Line of Business

Hobby Lobby offers over 70,000 items featuring home decor, seasonal decor, tableware, floral, art supplies, craft supplies, yarn, fabric, jewelry making, hobbies and much more. Today, with more than 900 stores, Hobby Lobby is the largest privately owned arts-andcrafts retailer in the world with over 43,000 employees and operating in forty-seven states.

DBA

Marshall’s

Locations

1,100+

Public/Private

Public

Line of Business

Marshall’s is an ever-changing selections of brand name, designer, and other high-quality fashions at prices generally 20%-60% below full-price retailers’ (including department, specialty, and major online retailers) regular prices, on comparable merchandise, every day.

DBA

Dollar Tree

Locations

15,000+

Public/Private

Public

Line of Business

Dollar Tree is an American chain of discount variety stores that sells items for $1 or less. Headquartered in Chesapeake, Virginia, it is a Fortune 500 company and operates over 15,000 stores throughout the 48 contiguous U.S. states and Canada. Each Dollar Tree stocks a variety of products including national, regional and privatelabel brands.

DBA

Harbor Freight Tools

Locations

1,100+ Locations

Public/Private

Private

Line of Business

Harbor Freight Tools is a privately held discount tool and equipment retailer, headquartered in Calabasas, California, which operates a chain of retail stores, as well as a mail-order and e-commerce business. The company employs over 20,000 people in the United States and has over 1,200 locations in 48 states.

PROPERTY DESCRIPTION

TE NA NT INF ORMAT I ON

SO U T H G AT E C E NT E R - K ING SV ILLE , T X

DBA

Burkes Outlet

Entity on Lease

BURKE’S OUTLET STORES, LLC

Locations

5,000+ Locations

Public/Private

Private

Line of Business

Burkes Outlet is a privately held company, rich in tradition, owned by the founding family and its employees. Beall’s, Inc. is the parent company of Burkes Outlet Stores, Inc. The corporation operates over 500 retail stores. Since its modest beginnings in 1915 Bealls has grown to be a major employer in the state of Florida as well as a valued asset to the communities it serves.

DBA

Factory Connection

Entity on Lease

FACTORY CONNECTION, LLC

Locations

300+ Locations

Public/Private

Private

Line of Business

With more than 300 stores in 16 states and growing rapidly, Factory Connection is a destination shopping experience for many of our customers. Factory Connection offers a wide selection of brand name fashions for Juniors, Misses, Plus, Men’s and Young Men’s, along with accessories and shoes.

DBA

Hibbett Sports

Locations

1,082 Locations

Public/Private

Public

Line of Business

Hibbett Sports, Inc. is an American publicly traded holding company for Hibbett Sporting Goods, a full line sporting goods retailer headquartered in Birmingham, Alabama. As of September, 2015, the company operated 1,025 retail stores in 32 states. Hibbett Sports, Inc. operates sporting goods stores in small to mid-sized markets, in the Southeast, Southwest and lower Midwest regions of the United States. States with the most stores are Georgia (97), Texas (97), and Alabama (90). Its stores offer a range of athletic equipment, footwear and apparel.

PROPERTY DESCRIPTION

I N VE S TMENT HI GHLI GHT S

SO U T H G AT E C E NT E R - K ING SV ILLE , T X

• Main Shopping Center in Kingsville – Located in Close Proximity to Kingsville Highschool, Texas A&M Kingsville, and the Kingsville Naval Air Station • 180,341

Shopping

Center

Priced

Well

Below

Replacement Cost at $67.01 Per Square Foot • Roof(s) Recently Replaced in December 2016/Early 2017 with a 20-Year Warranty Duro-Last Roof • 90.4% Occupied Providing Investors With a Significant Value Add Opportunity by Leasing the Remaining Three Spaces • High traffic Counts and Visibility — Located Along Brahma Blvd, Where Over 25,000 Vehicles Pass The Site Daily. Additionally, The Property Boasts Excellent Visibility With 1,100 Feet of Frontage on Brahma Blvd Along with a Large Pylon Sign at Center Entrance • Burkes Recently Signed a Brand-New 10 year Lease Which Will Further Enhance Traffic to the Center • PAD Sites Included for Future Development Opportunity • Surrounding National Retailers Include Tractor Supply, Walmart, Lowe’s, Sherwin Williams, Aarons, AT&T, McDonald’s, Wells Fargo and Many More

PROPERTY DESCRIPTION

S I T E PL A N

Not a Part

SO U T H G AT E C E NT E R - K ING SV ILLE , T X

NOT A PART

PROPERTY DESCRIPTION

A E R I AL MA P

SO U T H G AT E C E NT E R - K ING SV ILLE , T X

, 53 1V

16,649 VPD

Y7 HW

H.M. KING HIGH SCHOOL

JESUS R. PEREZ ELEMENTARY SCHOOL

BRAHMA BLVD

MARKET OVERVIEW

LO C AL MA P

SO U T H G AT E C E NT E R - K ING SV ILLE , T X

MARKET OVERVIEW

REG IONA L MA P

SO U T H G AT E C E NT E R - K ING SV ILLE , T X

MARKET OVERVIEW

M A R KET S U MMARY

SO U T H G AT E C E NT E R - K ING SV ILLE , T X

Corpus Christi, TX

OVERVIEW Corpus Christi is a coastal city in the South Texas region in the U.S. state of Texas. It is located 130 miles southeast of San Antonio along the Gulf Coast. Corpus Christi is the county seat of Nueces County and also extends into Aransas, Kleberg and San Patricio counties. The city’s population was estimated to be 326,586 in 2019, making it the eighth-most populous city in Texas. The Corpus Christi metropolitan area had an estimated population of 442,600. It is also the hub of the six-county Corpus Christi-Kingsville-Alice Combined Statistical area, with a 2019 estimated population of 535,257. The city is home to the Port of Corpus Christi, the fifth-largest in the United States, and is served by the Corpus Christi International Airport. The majority of the population is employed in the Services, Wholesale and Retail Trades and Government sectors. The Port of Corpus Christi is the deepest inshore port on the Gulf of Mexico, handles mostly oil and agricultural products. Much of the local economy is driven by tourism and the oil & petrochemicals industry. In 2005, the Port was ranked as the 47th largest in the

world by cargo tonnage. Corpus Christi is home to two installations of the United States military: the Corpus Christi Army Depot, and Naval Air Station Corpus Christi. Corpus Christi Army Depot, located on NAS Corpus Christi, is the largest helicopter repair facility in the world. A third military installation, also located on NAS Corpus Christi, is the United States Coast Guard Sector/Air Station Corpus Christi. Other large employers include CHRISTUS Spohn Health System, the Corpus Christi Independent School District, H-E-B and Bay Ltd. Other companies based in Corpus Christi include Stripes Convenience Stores and AEP Texas. The city is home to a number of popular destinations for both tourists and residents. Some of the most visited attractions are located on North Beach, where the Texas State Aquarium and the USS Lexington Museum on the Bay are located.

MARKET OVERVIEW

D E M OG RA PHIC STAT I ST I CS

SO U T H G AT E C E NT E R - K ING SV ILLE , T X

1 Mile

3 Mile

5 Mile

Population

1 Mile

3 Mile

5 Mile

Households:

2010 Population

6,103

26,471

28,018

2010 Households

2,290

9,174

9,719

2020 Population

5,949

25,456

26,851

2020 Households

2,225

8,932

9,424

2025 Population Projection

5,890

25,130

26,488

2025 Household Projection

2,195

8,814

9,292

Median Age

28.8

28.1

28.2

Annual Growth 2010-2020

0.70%

0.50%

0.40%

Bachelor's Degree or Higher

33%

22%

Owner Occupied

1,016

4,498

4,803

121

302

332

Renter Occupied

1,179

4,316

4,490

2.6

2.7

$61.2M

$220.2M

$234M

Avg Household Income

$74,663

$58,686

$59,443

Median Household Income

$50,959

$42,138

$42,633

< $25,000

522

3,166

3,293

$25,000 - 50,000

576

1,986

2,106

$50,000 - 75,000

272

1,152

1,226

U.S. Armed Forces

Avg Household Size

Population by Race White

5,357

22,876

24,151

Black

200

1,182

1,214

American Indian/Alaskan Native

282

290

Asian

197

646

709

Hawaiian & Pacific Islander

Two or More Races

113

418

433

3,915

18,990

19,947

Hispanic Origin

Housing Median Home Value Median Year Built

Avg Household Vehicles Total Consumer Spending

Income

$144,909

$85,861

$87,962

$75,000 - 100,000

312

1,025

1,085

1974

1967

1968

$100,000 - 125,000

170

723

756

$125,000 - 150,000

153

342

365

$150,000 - 200,000

112

354

383

$200,000+

107

185

211

MARKET OVERVIEW

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