SPRING CYPRESS COMMONS SPRING, TX
(HOUSTON MSA)
PRI CING & F INAN CI AL AN ALYSI S
SP R ING C Y P R E SS CO M M O NS
Spring Cypress Commons 21327 I-45 Spring, TX 77388
OFFERING SUMMARY Price Cap Rate
$2,850,000 6.68%
Net Operating Income
$190,413
Price PSF
$308.34
Occupancy Year Built Gross Leasable Area Lot Size
82.8% 2007 9,162 SF 0.87 Acres
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
PROJECTED INCOME & EXPENSES Base Rent - Occupied Space GROSS POTENTIAL RENT
82.8%
SP R ING C Y P R E SS CO M M O NS
CURRENT
PSF
$213,661
$23.32
$213,661
$23.32
EXPENSES
CURRENT
PSF
Real Estate Taxes
$74,155
$8.09
Insurance
$8,457
$0.92
CAM
Expense Reimbursements Real Estate Tax Recoveries
$61,408
$6.70
Landscaping
$12,437
$1.36
Insurance Recoveries
$7,003
$0.76
Pylon Sign Maintenance
$1,024
$0.11
CAM Recoveries
$26,102
$2.85
Repairs and Maintenance
$4,881
$0.53
$2,541
$0.28
Electricity
$2,578
$0.28
Total Expense Reimbursements
$97,054
$10.59
Trash
$2,275
$0.25
EFFECTIVE GROSS REVENUE
$310,710
$33.91
Water & Sewer
$1,629
$0.18
Tax Protest Fee
$3,860
$0.42
Management Recoveries
Operating Expenses Total Real Estate Taxes
$74,155
$8.09
Total CAM
$28,685
$3.13
Total Insurance
$8,457
$0.92
Management Fee
$9,000
$0.98
Total CAM
$28,685
$3.13
Total Expenses
$120,296
$13.13
Management Fee
$9,000
$0.98
Total Recoverable Expenses
$120,296
$13.13
Net Operating Income
$190,413
$20.78
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
Tenant
SP R ING C Y P R E SS CO M M O NS
Suite
SQ FT
% of SQFT
Lease Dates
Minimum Rent
Recoveries
Total
Start
End
Annual
Monthly
PSF
Annual
PSF
Revenue
% of Revenue
Mattress Firm
5,000
54.57%
05/07
08/25
$149,180
$12,432
$29.84
$63,086
$12.62
$212,267
68.32%
Available
1,575
17.19%
-
-
$0
$0
$0.00
$0
$0.00
$0
0.00%
American Shaman
1,197
13.06%
01/19
01/24
$26,867
$2,239
$22.45
$15,717
$13.13
$42,584
13.71%
T-Mobile
1,390
15.17%
08/13
07/23
$37,613
$3,134
$27.06
$18,251
$13.13
$55,864
17.98%
Totals
$213,661
$17,805
$310,715
100.00%
Total Count/GLA
4
9,162
100%
Occupied
3
7,587
82.8%
Available
1
1,575
17.2%
$28.16
7,587
100.0%
Total Avg Rent
$97,054
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
Tenant
Suite
SQ FT
% of SQFT
SP R ING C Y P R E SS CO M M O NS
Real Estate Taxes
Insurance
CAM
Management Fee
Total Recovery
Monthly
PSF
Monthly
PSF
Monthly
PSF
Monthly
PSF
Monthly
PSF
Mattress Firm
5,000
54.57%
$3,372
$8.09
$385
$0.92
$1,500
$3.60
$0
$0.00
$5,257
$12.62
Available
1,575
17.19%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
American Shaman
1,197
13.06%
$807
$8.09
$92
$0.92
$312
$3.13
$98
$0.98
$1,310
$13.13
T-Mobile
1,390
15.17%
$938
$8.09
$107
$0.92
$363
$3.13
$114
$0.98
$1,521
$13.13
Totals
9,162
100%
$5,117
$584
$2,175
$212
$8,088
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
SP R ING C Y P R E SS CO M M O NS Suite
SQ FT
Base Rental Increases Date
Renewal Options
PSF
CAM Cap
CAM Cap Description
User Restrictions & Exclusive Rights
Exclusive store to derive more than 15% of gross revenue from the sale of mattresses or waterbeds
Options
Date
PSF
32.20 37.03
Yes
7% Cap on Controllable CAM
Mattress Firm
5,000
-
-
2x5
9/1/2025 9/1/2030
Available
1,575
-
-
-
-
-
-
-
-
American Shaman
1,197
2/1/2022 2/1/2023
23.95 25.45
1x5
3/1/2024
Mkt
-
-
Exclusive CBD Store
T-Mobile
1,390
-
-
2x5
8/1/2023 8/1/2028
Mkt Mkt
-
-
Exclusive tenant to sell wireless products and services
F I N A N C I A L A N A LY S I S
6
TE NA NT INF ORMAT I ON
SP R ING C Y P R E SS CO M M O NS
Tenant
Mattress Firm
Corporate/Franchise
Corporate
Locations
2,600+ Locations
Public/Private
Private
Line of Business
Mattress Firm Inc. is an American Mattress store chain founded in 1986. The headquarters of the company is located in Houston, TX. It is the largest specialty mattress store in the Unites States with over 2,600 locations nationwide
Tenant
T-Mobile
Corporate/Franchise
Franchise
Locations
20,000+ Locations in the United States
Public/Private
Public
Line of Business
T-Mobile is an American wireless network operator. Its largest shareholder is the German telecommunications company Deutsche Telekom (DT) with a 43% share, with Japanese conglomerate holding company SoftBank Group partially owning the company as well at a 24% share. The remaining 33% share of the company is owned by the public through common stock. T-Mobile is the third-largest wireless carrier in the United States, with 103.4 million subscribers as of the end of Q1 2021.
Tenant
American Shaman
Corporate/Franchise
Franchise
Locations
350+ Locations
Public/Private
Private
Line of Business
CBD American Shaman is dedicated to bringing wellness to the world through ultra-concentrated terepene rich CBD oil derived from all natural, high quality industrial hemp. It is legal in all 50 states and is gluten free and eco-friendly, and is bacth tested using Ultra Performance Convergence Chromatography.
PROPERTY DESCRIPTION
7
I N VE S TMENT HI GHLI GHT S
SP R ING C Y P R E SS CO M M O NS
• Exceptional Positioning: Spring Cypress Commons is strategically located at the SW corner of North Fwy (IH 45) and Spring Cypress Rd. The Property offers frontage on both I-45 and Spring Cypress Rd, visible to over 183,000 vehicles per day on I-45 and 58,000 vehicles per day on Spring Cypress Rd. • Immediate Growth: The Property is located just 2.5 miles south of Springwood Village, an 1,800-acre master planned community being developed adjacent to the new ExxonMobil corporate campus. It will have 5,500+ homes upon completion. • Drive Thru Potential: A Purchaser may have the opportunity to negotiate a lease buy-out with T-Mobile (dark) with 2+ years remaining term. The dark T-Mobile space, closed due to the T-Mobile/Sprint consolidation, provides a suitable drive-thru potential vacancy, a desirable commodity in today’s market. • Upside: There is a 1,575 SF vacant suite, equating to just over 17% of the GLA. This is a second-generation vacancy, previously being occupied by First Cash Advance. • National Retailers in the Immediate Area: Academy Sports, Walmart Supercenter, HEB. Kohls, Ross, Michaels, Goodwill Industries, Burkes Outlet, Aaron’s. U-Haul and Many More
PROPERTY DESCRIPTION
8
A E R I AL MA P
SP R ING C Y P R E SS CO M M O NS
183,00 0 V PD
58,000 VPD
SPRING CYPRESS RD HURRICANE HARBOR
MARKET OVERVIEW
9
A E R I AL MA P
SP R ING C Y P R E SS CO M M O NS
183,00 0 V PD
MCNABB ELEMENTARY SCHOOL
SPRING HIGH SCHOOL
MARKET OVERVIEW
10
S I T E PL A N
SPRING CYPRESS RD
Vacant
SP R ING C Y P R E SS CO M M O NS
Pylon Sign
INTERSTATE 45
PROPERTY DESCRIPTION
11
LO C AL MA P
SP R ING C Y P R E SS CO M M O NS
MARKET OVERVIEW
12
REG IONA L MA P
SP R ING C Y P R E SS CO M M O NS
MARKET OVERVIEW
13
M A R KET S U MMARY
SP R ING C Y P R E SS CO M M O NS
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
14
D E M OG RA PHIC STAT I ST I CS
SP R ING C Y P R E SS CO M M O NS
1 Mile
3 Mile
5 Mile
Population
1 Mile
3 Mile
5 Mile
Households:
2010 Population
4,426
55,316
193,610
2010 Households
1,493
19,125
68,405
2020 Population
6,262
72,324
251,061
2020 Households
2,146
25,240
89,282
2025 Population Projection
6,591
75,522
266,156
2025 Household Projection
2,263
26,388
94,757
Annual Growth 2010-2020
3.80%
2.80%
2.70%
Annual Growth 2010-2020
4.00%
2.90%
2.60%
Annual Growth 2020-2025
1.00%
0.90%
1.20%
Annual Growth 2020-2025
1.10%
0.90%
1.20%
Median Age
35.8
35.6
34.1
Owner Occupied
1,931
21,142
64,003
Bachelor's Degree or Higher
35%
34%
32%
Renter Occupied
332
5,246
30,754
0
11
101
Avg Household Size
2.9
2.9
2.8
2
2
2
$83.3M
$921M
$3B
$120,182
$109,972
$100,655
$99,111
$88,432
$77,528
< $25,000
202
2,627
10,509
U.S. Armed Forces
Avg Household Vehicles
Population By Race
Total Consumer Spending
White
4,295
52,634
182,438
Black
1,147
11,797
45,239
38
508
1,990
Avg Household Income
632
5,530
14,748
Median Household Income
9
151
632
Two or More Races
142
1,703
6,014
$25,000 - 50,000
192
3,916
17,253
Hispanic Origin
1,711
19,935
77,738
$50,000 - 75,000
299
3,960
15,629
$75,000 - 100,000
394
3,939
12,359
American Indian/Alaskan Native Asian Hawaiian & Pacific Islander
Housing Median Home Value Median Year Built
Demographic data © CoStar 2020
Income
$220,419
$207,882
$204,597
$100,000 - 125,000
343
3,163
9,944
2005
2001
1999
$125,000 - 150,000
125
2,174
6,821
$150,000 - 200,000
331
2,566
8,260
$200,000+
260
2,894
8,507
MARKET OVERVIEW
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 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