721 highway 6 missouri city, t · 2017-05-26 · transwestern houston 100 west loop south, 1300...
TRANSCRIPT
TRANSWESTERN HOUSTON | 1900 WEST LOOP SOUTH, #1300 | HOUSTON, TX 77027 | 713.270.7700
WWW.TRANSWESTERN.NET/HOUSTON
MATT GILBERTHealthcare Advisory Services
Vice [email protected]
713.231.1654
8721 HIGHWAY 6 MISSOURI CITY, TX OFFERING MEMORANDUM
#
8721 Highway 6 | Offering Memorandum
2
OFFER GUIDELINES
Offers should be submitted electronically to Matt Gilbert at [email protected] and include the following information: • Purchase Price • Earnest Money• Closing Period
• Sources of Debt and Equity• Other Terms
CONTENTS
Investment Highlights
Property Overview
Location Overview
Market Overview
Page 03
Page 04
Page 10
Page 13
MATT GILBERT Healthcare Advisory ServicesVice [email protected]
#
8721 Highway 6 | Offering Memorandum
3
Transwestern’s Healthcare Advisory Services Group is pleased to offer
for sale on an exclusive basis, a 0.998-acre site improved medical office
building that contains approximately 8,178 net rentable square feet (“the
property”) strategically located at 8721 Highway 6 in Missouri City, Texas.
The site selection for the facility was based on the proximity to Sienna
Plantation, a master-planned community offering families the accessibility
to Houston, Texas.
The building consists of two suites, Eco Pharmacy (Suite 200) and an
available 6,678 square feet emergency care suite. The pharmacy lease
currently has 9.14 years remaining in the initial term, with (2) 5-Year options
to renew. The emergency care suite features 8 examination rooms,
reception area, conference room, administrative area, lab area, medical
gas, pharmacy, medical preparation area, trauma room, treatment room,
control/X-ray room, break room, restrooms, and nurses’ station.
• New Construction
• Double Net Lease - Limited Landlord Responsibility
• (2) 5-Year Renewal Option Periods
• 9.14 Years Remaining on Lease Term
• Population Counts Exceed 140,000 within 5 Mile Radius
Investment Highlights
FACILITY OVERVIEW
FACILITY TYPE Multi - Tenant
LEASE TYPE Double Net
YEAR BUILT 2012
SQUARE FEET 8,178
PARKING Ratio of 4.66/1,000 SF
TENANT OVERVIEW
TENANT NAME Eco Pharmacy - Suite 200SQUARE FEET 1,500PRIMARY TERM EXPIRATION February 3, 2025COMMENCEMENT DATE February 1, 2015NOI $36,000OPTION PERIOD (2) 5-YearLEASE TERMS • Double net basis, provided that the tenant shall at its sole cost and
expense keep and maintain all parts of the Premises (except those for
which Landlord is expressly responsible under the terms of the Lease),
including all Tenant Improvements and Alterations, in good order and
repair and free of refuse and rubbish.
• The landlord’s responsibility is limited to maintaining and making all
necessary repairs and/or replacement to the Property, the Building, and
the exterior portions and structural portions of the Building, including,
without limitation: the parking areas, foundations, structure, load bearing
walls, exterior walls, the roof and roof supports, columns, retaining walls,
gutters, downspouts, flashings, and footings.
• The tenant is responsible for the installation of ductwork for and regular
maintenance of the HVAC systems serving the premises.
• The leases states the tenant shall pay 18% percent of the proportional
share of the annual operating expenses and tax expenses considered
“additional rent.”
4#
8721 Highway 6 | Offering Memorandum
BUILDING SYSTEMS
YEAR BUILT 2012
SIZE 8,178 rentable square feet (6,678 square feet of emergency room area and 1,500 square feet)
STORIES One (1)
LAND TO BUILDING RATIO 5.34:1.0
PERCENTAGE HVAC 100%
STRUCTUREConcrete block structure on reinforced concrete foundation with brick veneer and cut limestone facing and a pitched metal standing seam roof structure.
INTERIOR FINISHES
Interior finishes include vinyl tile and vinyl sheet flooring, painted drywall and acoustical grid ceilings with both
fluorescent and incandescent lighting. The building is equipped with essentially all of the features found in a hospital
ER including CT area with lead lined walls, cardiac pulmonary capacity, emergency generator, ultrasound, etc.
EXTERIOR FINISHES The building has gutters and downspouts, aluminum windows, a covered patient drop-off, and monument signage.
SITE IMPROVEMENTS The project has 38 parking spaces, landscaping, lighting and sprinklers.
Property Overview
5#
8721 Highway 6 | Offering Memorandum
Property Overview
PROPERTY TAXESThe property is in Fort Bend County. In Texas, an appraisal district in each county sets the value of taxable property and determines exemption status, if applicable. Local taxing authorities, which include county, cities, school districts, and special districts (e.g. municipal utility districts, rural fire protection districts, junior college districts and others), adopt their own tax rates, which determine the amounts of taxes for each property.
The Texas Property Tax Code provides that all taxable property is to be appraised at its full market value as of January 1st of each year; however, appraised values are, in fact, often well below actual market values. One hundred percent of the appraised value is subject to taxation. The 2015 appraised value for the property is $1,927,970.
Taxing Authority 2015 Tax Rate
City of Missouri City 0.54468
Fort Bend County Drainage 0.02100
Fort Bend County General Fund 0.46500
Fort Bend ISD 1.34000
Sienna Plantation Management District 1.01000
Sienna Plantation LID 0.49000
Sienna Plantation MUD 8 0.00000
Totals 3.87068
The property is within the following taxing authorities:
6#
8721 Highway 6 | Offering Memorandum
Property Overview
EXTERIOR SITE PLAN
6
7#
8721 Highway 6 | Offering Memorandum
Property Overview
BUILDING LAYOUT
8#
8721 Highway 6 | Offering Memorandum
Property Overview
INTERIOR IMAGES
9#
8721 Highway 6 | Offering Memorandum
Property Overview
INTERIOR IMAGES
10#
8721 Highway 6 | Offering Memorandum
Location Overview
Population Growth
5 Mile Radius 10 Mile Radius
2010 128,187 550,362
2014 141,986 596,927
2019 160,427 661,885
2024 186,325 746,895
Percent Change 2014-2019 12.99% 10.88%
Percent Change 2019-2024 16.14% 12.84%
CITY OVERVIEWMissouri City is located in Fort Bend county and is home to a diverse,
family-oriented, rapidly growing population. As the table to the right
demonstrates, the population in a 10-mile area surrounding the subject
property is expected to increase by an additional 12.99% between 2014
and 2019 to reach approximately 160,400 people. This growth exceeds
the Greater Houston area’s expected 5.06% growth rate for the same
time period.
CITY HIGHLIGHTS
• For more than 15 years, Fort Bend has been in the top 20 counties in the United
States for economic excellence and population growth.
• Fort Bend has been named one of the safest communities in America, with three
of the nation’s top ten master-planned communities, and the regional leader in
household income.
• Since 2000 employment has increased 78%, in part due to the expansion of
energy companies outside Houston.
• Fort Bend County is now home to more than 625,000 people living in Fulshear,
Katy, Meadows Place, Missouri City, Richmond, Rosenberg, Stafford and Sugar
Land.
• 3 Mile Radius - Annual healthcare consumer spending higher than Houston
MSA.
• Historically a hub for Houston railroads, Fort Bend is also home to the new
CenterPoint Intermodal Center, interconnecting three major highway systems,
three railroads, and access to multiple land, sea and airports in the Greater
Houston area.
Source: FortBendCounty.Com
The overall area is experiencing growth in all directions with the primary
development in the area consisting of large single family subdivision
projects centering around the highly successful First Colony master-planned
community. The redevelopment of US Highway 59 and construction of the
Fort Bend County Toll Road have increased accessibility to the area.
The subject is located near the entrance to Sienna Plantation, a 10,500 acre
master-planned community that will contain 20,000 homes when fully built-
out. Home prices generally start at about $325,000 and exceed $600,000.
The project includes a 45,000 square foot Houston Community College
Campus as well as three elementary schools, one middle school and one
high school. A 45,000 square foot library opened in April 2010. This is a
$15 million project of Fort Bend County Libraries and Houston Community
College. The project also has a 160-acre sports complex.
11#
8721 Highway 6 | Offering Memorandum
Location Overview
CITY MAP OF MISSOURI CITY, TX
Booth
Hawdon
Fresno
Arcola
Thompsons
Sugar Land Fifth Street
Missouri City
Sienna Plantation
Sienna Pky
Fort
Ben
d P
ky
Fm 5
21 R
d
Mchard Rd Cartwright Rd
Trammel Fresno Rd
Fm 1
09
2 R
d
Texas Pky
W Fuqua Dr
Oilfield Rd
Commonwealth Blvd
Austin Pky
Lexington Blvd
Fondre
n R
d
6
8
59
90
8721 Highway 6
12#
8721 Highway 6 | Offering Memorandum
Location Overview
DEVELOPMENT MAP OF MISSOURI CITY, TX
SIENNA SHOPPING
CENTERTHE SHOPPES AT
SIENNA PLANTATIONRETAIL PADS
FOR SALE
FUTURE DEVELOPMENT
SIENNA VILLAGE SHOPPING
CENTER
SUBJECT PROPERTY
PARKWAY PLAZA
SHOPPING CENTER
SIENNA PLANTATION
• 10,000-ACRE MASTER PLANNED COMMUNITY• 4,057 HOMES AND GROWING • WATER PARKS, TENNIS COURTS,GOLF COURSE
AND A 160-ACRE SPORTS PARK
13#
8721 Highway 6 | Offering Memorandum
Location Overview
REGIONAL MAP OF MISSOURI CITY, TX
59
290
8
288
288
249
90
6
8
45
45
45
610
610
10
10
10
59
Downtown Houston
Sugar Land
Richmond
Rosenberg
Atascocita
Kingwood
Katy
Tomball
Webster
League City
Energy Corridor
Galleria
HobbyAirport
TexasMedicalCenter
BushIntercontinental
Airport
TheWoodlands
Grand Pkw
y Westpark Tollway
F.M.
1960
8721 Highway 6
14#
8721 Highway 6 | Offering Memorandum
HOUSTON MEDICAL MARKET
The Houston healthcare market is in the midst of a $3.2 billion building boom to keep up with increasing demands for healthcare due to strong population growth. Major projects include six hospitals scheduled to open by the end of 2016, as well as major expansions from multiple health systems. Other new healthcare facilities include freestanding emergency centers, retail clinics, and urgent-care centers.
MARKET PROFILENonprofit Memorial Hermann Health System dominates the Houston market, with about one quarter of inpatient discharges. Its largest competitor is for-profit HCA, a national chain. Otherlarge non profits include Houston Methodist and CHI St. Luke’s Health, part of Catholic Health Initiatives. The Houston market also includes the Texas Medical Center, a 48 million square foot massive complex that includes hospitals operated by leading health systems, educational facilities, and research institutions.
ANALYSIS OF MARKET DRIVERSHealth systems are the key drivers in the Houston market, as evidenced by the ability of market leader Memorial Hermann Health System to reach accountable care agreements that include incentive payments for improving outcomes and lowering costs. Memorial Hermann’s size, power, and experience in its well-developed clinical integration program are factors in its favor during negotiations with payers.
If Aetna completes its $37 billion acquisition of Humana, it is likely to become the largest health plan in the Houston market.
Another deal, Anthem’s $54 billion acquisition of Cigna, would create the second-largest carrier in terms of total enrollment.
Look for health systems in the Houston market to expand accountable care initiatives and to continue major construction projects as they seek to operate more efficiently while meeting the demands for healthcare from a growing population. Population growth is driving health systems to open new hospitals in suburban areas and to expand facilities throughout the Houston market.
EMERGENCY AND SURGERY CENTERSAs of February 2015, the Houston market includes 116 ambulatory surgery centers. Source: HealthLeaders - Interstudy, 2015
Market Overview
15#
8721 Highway 6 | Offering Memorandum
Market OverviewHOSPITAL LEASE COMPARABLES
SUGAR LAND SURGICAL HOSPITAL
Location16906 Southwest Freeway
Sugar Land, TX
Year Built 2012
Occupancy 100%
RA (SF) 41,808
Rental Rate (Gross) $33.00 NNN
Class A
Tenant Memorial Hermann
Status Off-Campus
Vacancy 0%
MEMORIAL HERMANN ORTHOPEDIC AND SPINE HOSPITAL
Location5140 West Loop South
Bellaire, TX
Year Built 2006
Occupancy 100%
RA (SF) 126,946
Rental Rate (Gross) $34.00 NNN
Class A
Tenant Memorial Hermann
Status Off-Campus
Vacancy 0%
IMPERIAL MEDICAL CENTER
Location1111 Highway 6 S
Sugar Land, TX
Year Built 1994
Occupancy 90%
RA (SF) 128,210
Rental Rate (Gross) $26.00 NNN
Class B
Tenant Elite Surgical Affiliates
Status Off-Campus
Vacancy 10%
16#
8721 Highway 6 | Offering Memorandum
Market OverviewHOSPITAL SALES COMPARABLES
FIRST CHOICE EMERGENCY ROOM
Location5000 Eldorado Parkway
Mckinney, TX
Year Built 2015
Sale Date 4/1/2015
Occupancy at Sale 100%
RA (SF) 7,040
Sales Price $3,600,000
Price/SF (Gross) $504
Buyer Kendrew Investments LLC
Seller MC Lake Forest LP
Property Type Emergency Hospital
ELITE SURGICAL EMERGENCY CENTER
Location8703 Bandera Road
San Antonio, TX
Year Built 2013
Sale Date Under Contract
Occupancy at Sale 100%
RA (SF) 14,878
Sales Price $7,090,000
Price/SF (Gross) $477.00
Buyer N/A
Seller Bandera ED MOB LLC
Property Type Emergency Hospital
HUMBLE SURGICAL HOSPITAL
Location1475 FM 1960 Bypass Road E
Humble, TX
Year Built 2010
Sale Date 4/1/2014
Occupancy at Sale 100%
RA (SF) 30,000
Sales Price $13,700,000
Price/SF (Gross) $456.66
Buyer NorthStar Asset Management
Seller G-A Healthcare REIT
Property Type Surgical Hospital
CONFIDENTIAL MEMORANDUM & DISCLAIMER
Transwestern (“Agent”) has been engaged as the exclusive agent for the sale of 8721 Highway 6 located in Missouri City, TX (the “Property”), by the owner of the Property (“Seller”). The Property is being offered for sale in an “as-is, where-is” condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum.
The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. Neither the enclosed materials nor any information contained herein is to be used for any other purpose or made available to any other person without the express written consent of the Seller. Each recipient, as a prerequisite to receiving the enclosed, should be registered with Transwestern as a “Registered Potential Investor” or as “Buyer’s Agent” for an identified “Registered Potential Investor.” The use of this Offering Memorandum and the information provided herein is subject to the terms, provisions and limitations of the confidentiality agreement furnished by Agent prior to delivery of this Offering Memorandum. The enclosed materials are being provided solely to facilitate the prospective investor’s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Agent or the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein.
Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller.
Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller’s obligations thereunder have been satisfied or waived.
By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller or Agent or as otherwise provided in the Confidentiality and/or Registration Agreement executed and delivered by the recipient(s) to Transwestern.
K:\Lisa Baker\4-CARLOS & DAVID FLYERS\1a - Links\Broker Disclosure_HAZ_ADA_Code 1445 Generic For FLYERS-TW.doc
TRANSWESTERN PROPERTY COMPANY SW GP, L.L.C.
SALE/LEASE AMERICAN’S WITH DISABILITIES ACT, HAZARDOUS MATERIALS AND TAX DISCLOSURE
The Americans with Disabilities Act is intended to make many business establishments equally accessible to persons with a variety of disabilities; modifications to real property may be required. State and local laws also may mandate changes. The real estate brokers in this transaction are not qualified to advise you as to what, if any, changes may be required now, or in the future. Owners and tenants should consult the attorneys and qualified design professionals of their choice for information regarding these matters. Real estate brokers cannot determine which attorneys or design professionals have the appropriate expertise in this area. Various construction materials may contain items that have been or may in the future be determined to be hazardous (toxic) or undesirable and may need to be specifically treated/handled or removed. For example, some transformers and other electrical components contain PCB’s, and asbestos has been used in components such as fire-proofing, heating and cooling systems, air duct insulation, spray-on and tile acoustical materials, linoleum, floor tiles, roofing, dry wall and plaster. Due to prior or current uses of the Property or in the area, the Property may have hazardous or undesirable metals (including lead based paint), minerals, chemicals, hydrocarbons, or biological or radioactive items (including electric and magnetic fields) in soils, water, building components, above or below-ground containers or elsewhere in areas that may or may not be accessible or noticeable. Such items may leak or otherwise be released. Real estate agents have no expertise in the detection or correction of hazardous or undesirable items. Expert inspections are necessary. Current or future laws may require clean up by past, present and/or future owners and/or operators. It is the responsibility of the Seller/Lessor and Buyer/Tenant to retain qualified experts to detect and correct such matters and to consult with legal counsel of their choice to determine what provisions, if any, they may wish to include in transaction documents regarding the Property. Sale, lease and other transactions can have local, state and federal tax consequences for the seller/lessor and or buyer/tenant. In the event of a sale, Internal Revenue Code Section 1445 requires that all buyers of an interest in any real property located in the United States must withhold and pay over to the Internal Revenue Service (IRS) an amount equal to ten percent (10%) of the gross sales price within ten (10) days of the date of the sale unless the buyer can adequately establish that the seller was not a foreigner, generally by having the seller sign a Non-Foreign Seller Certificate. Note that depending upon the structure of the transaction, the tax withholding liability could exceed the net cash proceeds to be paid to the seller at closing. Consult your tax and legal advisor. Real estate brokers are not qualified to give legal or tax advice or to determine whether any other person is properly qualified to provide legal or tax advice. SELLER PURCHASER By: By: Title: Title: Co. Name: Co. Name: Date: Date:
14
FOR MORE INFORMATION, PLEASE CONTACT:
MATT GILBERT TranswesternHealthcare Advisory ServicesVice President
Transwestern is a privately held real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise
leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm
capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 U.S. offices and assists clients
through more than 180 offices in 37 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate.