absolute net lease s. sam houston · 2018. 9. 14. · offering summary charlotte nnn investment...

$4,986,000

7.20% Cap Rate

10-Year New Lease

Corporate Guarantee

Strong Financials

ABSOLUTE NET LEASE S. SAM HOUSTON

Offering Memorandum

10103 S. Sam Houston Pkwy. Houston, TX

2


Offering Memorandum

David B. Fisher, CCIMFuel & Convenience Center Investments

D. (832) 442-2828C. (936) 320-3737

[email protected]

License TX: 691654Activity ID: Z0860151

1450 Lake Robbins Drive, Suite 300The Woodlands, TX 77380

10103 S. Sam Houston Pkwy.Houston, TX 77075

INVESTMENT SUMMARY…Location Summary

Investment Overview

FINANCIAL ANALYSIS…

Financial Summary

REGIONAL MAP…Regional Location

Site Map

MARKET OVERVIEW…Branded Franchise

Comparable Sales

Additional Pictures

Market Overview

Demographic Analysis

TABLE OF CONTENTS

5,725 SF| NET INTERIOR AREA |

04

05

09

12

14

15

17

24

27

32


S U B J EC T

Hwy 8 – 60,000 APD

4

OFFERING SUMMARY

CHARLOTTE NNN

LOCATION SUMMARY


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OFFERING SUMMARY

CHARLOTTE NNN

INVESTMENT OVERVIEW


OVERVIEW

David Fisher, CCIM and Marcus & Millichap have been retained on an exclusive basis andare pleased to present the opportunity to acquire a net leased investment where Zip In -Zip Out Inc. will be the tenant under a brand new 10-year absolute net lease. Zip In Zip OutInc. is a company that has over 80-years of collective experience in developing “next-generation” fuel and convenience center investments. The subject property is located at10103 S. Sam Houston Pkwy., Houston, TX. and was constructed in 2018 withimprovements consisting of a spacious “next-generation” convenience center ofapproximately 5,725 SF, a primary fuel canopy @ 3,000 SF, and a second diesel canopy ofapprox. 750 SF that are of exceptional design and new construction.

The center consists of (5) MPDs providing 10 separate gas and diesel stations, moderndesigned convenience store with 15’ high ceilings, spacious café & deli, large prep and coldstorage areas with extensive office and dry storage space.

The property consists of approximately 58,370± SF of land (1.36± acres), the marquee signstands over 25’ high and is visible from Beltway 8 by over 62,000 westbound travelersevery day. Beltway 8 is a major arterial roadway that circles downtown Houston connectingmany communities North, South, East and West.

This exceptional net leased investment opportunity requires zero landlord responsibilitiesand is a result of the developers many years of experience in developing, opening andstabilizing successful fuel and convenience center projects. Zip In Zip Out Inc. is offering asale-leaseback arrangement with an initial 10-year obligation with six (6) 5-year options torenew and 10% rental payment increases every 5-years. The lease is backed by strongfinancials from Zip In Zip Out Inc. (See page 13 for additional corporate information.)

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OFFERING SUMMARY

CHARLOTTE NNN

INVESTMENT OVERVIEW


MINI-MART

The convenience store includes a Mini-Mart with an off-site beer and wine sales license,a Quick Service Restaurant (QSR) “Dickey’s Barbecue Pit”, an unbranded deli & foodcounter, and a spacious place to sit, relax and enjoy quality food in a clean and safeenvironment.

The building envelope is approximately 5,725± square feet and has stucco over steelframe construction over a concrete foundation and slab floor. The roof cover is buildupcomposition. The interior ceiling has a 15± feet elevation above slab with the top of theroof deck being 17± feet above grade. The building contains a four foot high parapetextending the exterior South and East facing walls to a 21± foot elevation above grade.The building also contains a convenient vehicle drive-through for Dickey’s BBQ café.

DISPENSER CANOPIES

The facility contains two fuel canopies containing 3,000 and 750 square feet ofarea. Both canopies have high-luminescence lighting supported by metal frameconstruction strengthened by metal poles and reinforced attractive brick façade.

The larger canopy at the South side of the property fronting the conveniencestore has an area of 3,000± square feet and covers five (5) double-sided MultipleProduct fuel Dispensers (“MPD’s) i.e., 10 fueling stations offering customersthree grades of gasoline (regular, midgrade and premium) with diesel.

The smaller canopy at the northeast side of the property has an area of 750±square feet and covers two (2) MPDs double-sided gas and diesel fuel dispensers(four fueling stations) for trucks and vehicles requiring diesel fuel.

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OFFERING SUMMARY

CHARLOTTE NNN

INVESTMENT OVERVIEW


UNDERGROUND FUEL TANKS

The property contains four underground fuel tanks with leak monitor systems,containment basins and related safety and EPA required improvements, whichwere all installed new in 2018. The underground tank installations conform to2018 government requirements.

Four underground tanks have a combined 30,000-gallon gasoline/diesel capacity.The primary gasoline tank with a 20,000 gallon capacity, and two additionalgasoline tanks at 5,000-gallon capacities each.

A fourth underground tank for diesel is at 15,000-gallon capacity. The gasolinetanks are partitioned into three compartments providing regular, midgrade andpremium grades of gasoline. All tanks are designed with double wall, fiber-coatedmetal construction

YARD IMPROVEMENTS

The site has a concrete surface throughout including the fuel canopy areas andabove the underground tank areas. The site has 10 automobile parking spaces inaddition to two handicapped spaces.

o Trash enclosure.o Air and water station.o 25-foot high monument sign.o Drive-through service lane supporting Dickey’s BBQ restaurant operations that

includes signage and intercoms.

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OFFERING SUMMARY

CHARLOTTE NNN

INVESTMENT OVERVIEW


FEATURES

o Expansive merchandise display with the cashier counter centrally located toward the rear of the floor area with ample unrestricted space for customer movement from all sides.

o Spacious deli food preparation area at the Northwest area of the interior.

o Dickey’s BBQ Pit restaurant (see menu on page 21) with convenient interior tables and chairs at the southwest corner of the interior space with drive-through service.

o Spacious top rated stainless steel walk-in coolers with 22 reach-in shelves serving both the convenience store and the restaurant franchise operation.

o Labor conscious gravity flow re-stock-dispensing shelves behind each cooler door.

o Separate men’s and women’s restrooms with extensive use of marble on walls and floor exemplify the owners commitment to quality in design details and construction.

o Large uncongested back-of-house prep and kitchen area for the Café and Deli.

o Large stainless steel walk-in freezer.

o Climate controlled “door ajar” alert system in walk-in cooler & freezer.

o Dry storage area and large private office.

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OFFERING SUMMARY

CHARLOTTE NNN

FINANCIAL SUMMARY


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Input for Pricing Matrix

Price $4,986,000

Pricing Variable Price

Pricing Increments $50,000

Date of Analysis 9/5/2018

Property Description Input

Property SubtypeNet Leased Auto Service -

Gas/Conv

Property Name Absolute Net S Sam Houston

Address 10103 S. Sam Houston

City Houston

State TX

Zip Code 77089

Year Built/Renovated 2018

Lot Size (Acres) 1.34 Acres

Gross Leasable Area (SF) 5,725

Zoning Retail / Commercial

Type of Ownership Fee Simple

Lease Summary

Tenant Zip In Zip Out Inc

Guarantor Corporate Guarantee

Credit Rating: Regionalk

Sale/Leaseback Yes

Lease Type Absolute Net

Lease Commencement At Close of Escrow

Initial Lease Term 10.00

Rent Increases 10% each 5-Years

Renewal Options (Summary) Six (5) Year Options

Renewal Options 5 Yr Option with 10% increase

PROPERTY SUMMARY

THE OFFERING ANNUALIZED OPERATING INFORMATION

Property Absolute Net Lease S Sam Houston INCOME

Property Address 10103 S Sam Houston Pkwy.

Houston, TX 77075

Net Operating Income $358,992

Price $4,986,000 RENT SCHEDULE

Capitalization Rate 7.20% YEAR ANNUAL RENT MONTHLY RENT RENT/SF CAP RATE

Price/SF $870.92 Current $358,992 $29,916 $62.71 7.20%

Years 1 - 5 $358,992 $29,916 $62.71 7.20%

PROPERTY DESCRIPTION Years 6 - 10 $394,891 $32,908 $68.98 7.92%

Year Built / Renovated 2018

Gross Leasable Area 5,725 SF

Zoning Retail / Commercial $0

Type of Ownership Fee Simple $0

Lot Size 1.34 Acres $0

$0

LEASE SUMMARY $0

Property Subtype Net Leased Auto Service - Gas/Conv $0

Tenant Zip In Zip Out Inc.

Rent Increases 10% Every Five Years

Guarantor Corporate Guarantee

Lease Type Absolute Net $0

Lease Commencement At Close of Escrow $0.00

Initial Lease Term 10-Years 1: Assumes Total Expenses remain constant. Please see agent for details.

Renewable Options Six (5) Year Options

Landlord Responsibility Zero

Tenant ResponsibilityAll Expenses including Roof, Structure

and Subteranian

Right of First

Refusal/OfferNo

OFFERING SUMMARY

CHARLOTTE NNN

FINANCIAL SUMMARY


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OFFERING SUMMARY

CHARLOTTE NNN

FINANCIAL SUMMARY


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CAP Rate Price Price/SFInitial

Cash-on-Cash

LEASE SUMMARY7.35% $4,886,000 $853.45 8.12%

7.27% $4,936,000 $862.18 7.87%

7.20% $4,986,000 $870.92 7.63% Tenant: Absolute Net S Sam Houston

7.13% $5,036,000 $879.65 7.39% Guarantor: Corporate Guarantee

7.06% $5,086,000 $888.38 7.16% Credit Rating: Regionalk

Rent Commencement: At Close of Escrow

Operating Information Initial Lease Term 10 Years

NOI as of 2023 $358,992

Options:

5 Yr Option with 10% increase

2023

2028

2033

2038

2043

Rent/SF $62.71

Gross Leasable Area 5,725 SF

Financing Lease Type: Absolute Net

New Acquisition Financing $3,490,200

Loan To Value 70.00%$62.71/SF

$5.23/SF/Month

$358,992 Annual Rent

Interest Rate 5.00% Base Rent:

Amortization Period 25 Years

Loan Constant 7.02%

Annual Debt Service Payment $244,840Rent Increases: 10% each 5-Years

Year 1 Debt Service Coverage 1.47

Year 1 Debt Yield 10.29%

Year 1 Net Cash Flow After Debt Service $114,152

OFFERING SUMMARY

CHARLOTTE NNN

REGIONAL MAP


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OFFERING SUMMARY

CHARLOTTE NNN

NEIGHBORHOOD LOCATION


- 13 -


OFFERING SUMMARY

CHARLOTTE NNN

SITE MAP


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60k APD

STRONG LOCAL & NATIONAL BRANDING

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o In 1941, Travis Dickey founded Dickey’s Barbecue Pit in Dallas, Texas with itsoriginal location still in operation. The restaurant began franchising in 1994.Technomic named Dickey’s Barbecue Pit the “Fastest-growing restaurant chainin the country” in 2012. That year, QSR Magazine included Dickey’s BarbecuePit on its list of "Best Franchise Deals.

o Chevron Corporation is an American multinational energy corporation.One of the successor companies of Standard Oil, it is headquartered in SanRamon, California, and active in more than 180 countries. Chevron is oneof the world's largest oil companies; as of 2017, it ranked nineteenth inthe Fortune 500 list of the top US closely held and public corporations.

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o Zip In Zip Out Corporation is a Texas Corporation formed in 2018 andbased in Houston, Texas. Founded by three brothers with a combined 80+years of Fuel & C-Store industry experience successfully developing andhaving owned and operated over 30 fuel and convenience centerproperties. In 2016 they developed the Zip In Zip Out new generation C-Store concept that addresses the changing needs of the travelling publicand local communities where the stores are located. The owners haveretained six Zip In Zip Out branded stores within the Houston area andintend to offer franchise opportunities moving forward. Funds from thissale-leaseback will assist in their direct development and franchiseopportunity expansion plans.

o The Zip In Zip Out brand has become the “Next-Generation” fuel andconvenience center standard by which other similar asset types aremeasured. Quality design, construction, and strong management willgenerate safe passive-investment returns backed by a strong balance sheetwith zero management responsibilities. The new lease will indemnifyinvestor 100% from any environmental concerns as the tenant will remain100% accountable. Note: Owners have a perfect environmental record!

MARKET

COMPARABLESCOMPARABLES

OFFERING SUMMARY

CHARLOTTE NNN

HOUSTON – SOUTHBELT ELLINGTON

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ABSOLUTE NET LEASE SOUTH SAM HOUSTON

COMPARABLES MAP

17

ABSOLUTE NET LEASE SOUTH SAM

HOUSTON

(SUBJECT)

7–Eleven and Shell Gas

and Convenience Station

Stripes

7-11 VALLEY RIDGE

Murphy Express Ground

Lease

7-Eleven

Circle K

Stripes Convenience Store

Jiffy Lube

Jiffy Lube

SALES COMPARABLES

1

2

3

4

5

7

8

6

9

18

Avg. 6.22%

0.0

0.8

1.6

2.4

3.2

4.0

4.8

5.6

6.4

7.2

8.0

ABSOLUTENET LEASESOUTH SAMHOUSTON

7–Elevenand ShellGas and

ConvenienceStation

Stripes 7-11 VALLEYRIDGE

MurphyExpressGroundLease

7-Eleven Circle K StripesConvenience

Store

Jiffy Lube Jiffy Lube-2

PROPERTY NAMEABSOLUTE NET LEASE SOUTH SAM HOUSTON

SALES COMPARABLES

Average Cap Rate

SALES COMPARABLES SALES COMPS AVG

19

Avg. $956.07

$0.00

$300.00

$600.00

$900.00

$1,200.00

$1,500.00

$1,800.00

$2,100.00

$2,400.00

$2,700.00

$3,000.00

ABSOLUTENET LEASESOUTH SAMHOUSTON

7–Elevenand ShellGas and

ConvenienceStation

Stripes 7-11 VALLEYRIDGE

MurphyExpressGroundLease

7-Eleven Circle K StripesConvenience

Store

Jiffy Lube Jiffy Lube-2

PROPERTY NAMEABSOLUTE NET LEASE SOUTH SAM HOUSTON

SALES COMPARABLES

Average Price Per Square Foot

SALES COMPARABLES SALES COMPS AVG

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


20

SALES COMPARABLES

SUBJECT PROPERTY

Asking Price $4,986,000

Price/SF $870.92

CAP Rate 7.20%

GLA 5,725 SF

Lot Size 1.34 acre(s)

Year Built 2018

Lease Term Remaining 2048.0 Years


10103 S Sam Houston Pkwy E, Houston, TX, 770891

Close Of Escrow 3/4/2016

Sales Price $2,882,296

Price/SF $480.38

CAP Rate 5.75%

GLA 6,000 SF

Year Built 1990

7–ELEVEN AND SHELL GAS AND CONVENIENCE STATION26730 East Highway 380, Little Elm, TX, 76227

2


Days On Market 129


Price/SF $840.51

CAP Rate 6.43%

GLA 4,991 SF

Lot Size 1.15 Acres

STRIPES708 US Hwy 77, Schulenburg, TX, 78956

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


21

SALES COMPARABLES

3



Price/SF $1,033.33

CAP Rate 4.72%

GLA 3,000 SF

Year Built 1998

7-11 VALLEY RIDGE900 Valley Ridge Blvd, Lewisville, TX, 75077

4


Days On Market 91


Price/SF $2,427.18

CAP Rate 5.15%

GLA 1,200 SF


Year Built 2018

MURPHY EXPRESS GROUND LEASEAlt Highway 90 & University Blvd, Sugar Land, TX, 77478

5


Days On Market 356


Price/SF $719.69

CAP Rate 6.40%

GLA 4,728 SF


Year Built 2006

7-ELEVEN5500 West MIle 7 Road , Mission, TX, 78574

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


22

SALES COMPARABLES

6



Price/SF $854.10

CAP Rate 6.00%

GLA 3,009 SF


Year Built 1999

CIRCLE K1701 S 10th St, McAllen, TX, 78503

7


Days On Market 281


Price/SF $770.00

CAP Rate 7.05%

GLA 4,026 SF

Lot Size 1.387 Acres

Year Built 2002

STRIPES CONVENIENCE STORE4420 West University Drive, Edinburg, TX, 78539

8

Tenants Lease Type

Close Of

Escrow:12/20/2005

Days On

Market:111

Sales Price: $1,443,890

Price/SF: $832.69

CAP Rate: 7.20%

Year Built: 1997

JIFFY LUBE13102 Louetta Rd, Cypress, TX, 77429

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


23

SALES COMPARABLES

9

Tenants Lease Type

Close Of

Escrow:12/9/2005

Days On

Market:100

Sales Price: $1,159,048

Price/SF: $646.79

CAP Rate: 7.25%

Year Built: 1997

JIFFY LUBE4835 Louetta Rd, Spring, TX, 77388

OFFERING SUMMARY

CHARLOTTE NNN

ADDITIONAL PICTURES


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OFFERING SUMMARY

CHARLOTTE NNNABSOLUTE NET LEASE S. SAM HOUSTON

MISCELANEOUS PICTURES

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MARKET

OVERVIEW

MARKET OVERVIEW

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Hobby Airport 3-Mi From Subject

HOUSTONOVERVIEW

1

As the fifth most populous metro area in the U.S., Houston houses

nearly 6.9 million people in southeastern Texas. The market is

composed of nine counties: Harris, Galveston, Brazoria, Fort Bend,

Chambers, Montgomery, Austin, Liberty and Waller. The Gulf of

Mexico, which borders the metro to the southeast, provides access to

markets around the world via the Port of Houston, making it a prime

location for exports. Local industries have diversified from oil to

technology and healthcare. Many companies provide goods and

services for the large population growth, which has sprawled, primarily

to the north and west. The city of Houston is the largest in the metro

with 2.3 million residents.

METRO HIGHLIGHTS

CORPORATE GROWTH

Houston will remain a top destination for corporate

relocations due to its business-friendly environment.

Twenty Fortune 500 companies are headquartered

in the metro.

HIGHER EDUCATION

Over 40 post-secondary educational institutions are

located in the metro. Nearly 30 percent of residents

have attained a bachelor’s degree, with 11 percent

also holding a graduate or professional degree.

LOW COST OF LIVING, DOING BUSINESS

Houston has a lower cost of living than many major

metros, no state income tax and a median home

price below the national level.

MARKET OVERVIEW

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1

MARKET OVERVIEW

#


ECONOMY▪ The economy is diversifying to include biotechnology, distribution, nanotechnology and

logistics; the metro is the center of the energy production with roughly 260,000 workers.

▪ Local product manufacturing is a large segment of the economy and includes paper,

electrical and electronic machinery, iron, steel and petrochemicals.

▪ Healthcare is gaining economic prominence. Specialized medical education and training

institutions boost the local economy and supply a growing hospital system.

▪ The Port of Houston is one of the country’s busiest for exports, supplying thousands of jobs

and generating billions of dollars in revenue.

SHARE OF 2017 TOTAL EMPLOYMENT

MAJOR AREA EMPLOYERS

Memorial Hermann Healthcare System

University of Texas

The Kroger Co.

Exxon Mobil Corp.

Shell Oil Co.

Houston Methodist

United Continental Holdings

Baker Hughes Inc.

CHI St. Luke’s Health

Hewlett Packard Enterprise* Forecast

MANUFACTURING8%

GOVERNMENT

HEALTH SERVICES

EDUCATION AND

OTHER SERVICES AND MINING

+NATURAL RESOURCES

3%

LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES

20%

AND UTILITIES

TRADE, TRANSPORTATION CONSTRUCTION

PROFESSIONAL AND

BUSINESS SERVICES

4%INFORMATION AND

16%

7%

14% 10% 5%

13%

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1

MARKET OVERVIEW

#


DEMOGRAPHICS

▪ The Houston metro is expected to add 506,600 people through 2022 and roughly

111,500 of these residents will be millennials in the 20- to 34-year-old cohort.

▪ During the same period, nearly 229,500 households will be formed, generating

demand for housing.

▪ The homeownership rate of 61 percent is below the national rate of 64 percent. The

median home price of $247,200 is also below that the U.S.

Outdoor activities abound in Houston as a result of the city’s favorable location and climate.

More than a dozen state parks and recreation areas lie within a short drive of Houston, as

well as more than 500 parks and open spaces and various cultural venues and museums.

Johnson Space Center is a popular tourist and educational destination. The metro is also

known internationally for its medical community and is home to the Texas Medical Center,

the largest of its kind in the world. Houston is home to four professional sports teams: the

Houston Texans, the Houston Astros, the Houston Rockets and the Houston Dynamo.

* Forecast

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s

Analytics; U.S. Census Bureau

QUALITY OF LIFE

2017 Population by Age

0-4 YEARS

7%5-19 YEARS

22%20-24 YEARS

7%25-44 YEARS

29%45-64 YEARS

24%65+ YEARS

10%

SPORTS

EDUCATION

ARTS & ENTERTAINMENT

34.1

2017MEDIAN AGE:

U.S. Median:

37.8

$60,300

2017 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

$56,300

6.9M

2017POPULATION:

Growth2017-2022*:

7.4%

2.4M

2017HOUSEHOLDS:

9.6%

Growth2017-2022*:

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1

MARKET OVERVIEW

#


HOUSTON METRO AREAPost-Hurricane Recovery Boosts Retail

Spending, Draws Investors

Local residents rebuilding after floods, sales rise. Economic growth is returning to Houston as the metro

emerges from the damage created by Hurricane Harvey and struggles stemming from the decline in energy

prices in previous years. In 2018, job additions will rise, with local organizations creating more positions than

the previous three years combined. Strengthening employment and recovery efforts related to the hurricane

will provide an additional boost to retail consumption this year, and retail sales are expected to rise faster than

the national pace. Local households replacing goods lost during the flooding will help lift spending, while

residents temporarily relocating to assist with rebuilding efforts raise sales at restaurants, grocery stores and

other needs-based retailers. As a result, retailers continue to expand in the metro this year, and grocers such

as Kroger and H-E-B will open multiple locations on the west and north sides of Houston. Fitness centers,

dollar stores, plus numerous restaurant and entertainment options will open this year, helping keep vacancy

60 basis points below the 10-year average.

Development in West Houston attracts investors. The increasingly diverse population propelled the Houston

retail segment in recent years, keeping buyers interested in the local market. The metro is poised for an

increase in trading volume this year, however, as staffing in the oil and gas industry has stabilized and new

opportunities are presented in western submarkets. This side of the metro will receive an influx of new

properties as development continues along the Grand Parkway. Grocery-anchored retail centers are in high

demand, often trading in the mid-6 percent area. Meanwhile, strip-center assets with service-oriented tenants

pique buyer interest, often changing hands in the low-7 percent span. Properties in West Houston submarkets

such as Katy, Sugar Land out toward the Grand Parkway, and up to The Woodlands will draw strong buyer

demand this year.

* Forecast

Sources: Marcus & Millichap Research Services; BLS; CoStar Group, Inc.

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1

MARKET OVERVIEW

#


HOUSTON METRO AREA

2018 Market Forecast

Higher vacancy than a large share of markets plus slow rent gains pull

Houston down four spots this year.

Employers will create 75,000 positions in 2018 following the addition of

45,000 jobs in 2017.

Delivery volume slows after the completion of nearly 5.6 million square feet

in 2017. Sugar Land and Conroe each welcome more than 400,000 square

feet of new supply in 2018.

Vacancy rises for a second year, reaching 6.0 percent in 2018 as 2 million

square feet of retail space is absorbed.

The average asking rent advances to $17.12 per square foot, increasing for

a second consecutive year.

Retail assets in heavily flooded areas of Houston could be value-add targets

this year. Owners in these locales may choose to dispose of properties in

lieu of renovating, while others may divest as some tenants are unable to

reopen stores.

* Forecast

Sources: Marcus & Millichap Research Services; CoStar Group, Inc.;

Real Capital Analytics

NRI Rank

30, down 4 places

Employment

up 2.5%

Construction

2.9 million sq. ft.

Vacancy

up 20 bps

Rent

up 1.5%

Investment

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1#


DEMOGRAPHICS

Source: © 2017 Experian

Created on May 2018

POPULATION 1 Miles 3 Miles 5 Miles

▪ 2022 Projection

Total Population 18,004 134,747 259,201

▪ 2017 Estimate


▪ 2010 Census


▪ 2000 Census


▪ Current Daytime Population

2017 Estimate 11,956 98,661 212,510

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

▪ 2022 Projection

Total Households 5,202 43,935 85,571

▪ 2017 Estimate


Average (Mean) Household Size 3.39 3.09 3.05

▪ 2010 Census


▪ 2000 Census


▪ Occupied Units

2022 Projection 5,202 43,935 85,571

2017 Estimate 4,737 40,588 82,421

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

▪ 2017 Estimate

$150,000 or More 7.95% 7.27% 8.06%

$100,000 - $149,000 17.09% 14.72% 14.52%

$75,000 - $99,999 18.92% 14.52% 13.62%

$50,000 - $74,999 24.17% 19.90% 18.04%

$35,000 - $49,999 13.22% 15.35% 14.93%

Under $35,000 18.66% 28.23% 30.82%

Average Household Income $80,163 $72,486 $73,689

Median Household Income $67,210 $56,934 $55,044

Per Capita Income $22,701 $23,188 $23,836

HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 MilesTotal Average Household Retail Expenditure

$75,117 $66,993 $65,212

▪ Consumer Expenditure Top 10 Categories

Housing $19,578 $17,576 $17,048

Transportation $15,597 $13,686 $13,319

Shelter $10,398 $9,388 $9,109

Food $8,418 $7,476 $7,249

Personal Insurance and Pensions $7,215 $5,982 $5,753

Health Care $5,045 $4,375 $4,247

Utilities $4,759 $4,302 $4,201

Entertainment $2,841 $2,467 $2,402

Household Furnishings and Equipment

$2,306 $2,008 $1,933

Cash Contributions $1,903 $1,628 $1,606

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

▪ Population By Age

2017 Estimate Total Population 16,465 121,467 240,732

Under 20 32.72% 32.13% 31.86%

20 to 34 Years 21.51% 23.42% 23.25%

35 to 39 Years 7.60% 7.74% 7.46%

40 to 49 Years 13.59% 12.72% 13.03%

50 to 64 Years 16.16% 14.99% 15.40%

Age 65+ 8.41% 8.99% 8.99%

Median Age 32.18 31.60 31.79

▪ Population 25+ by Education Level

2017 Estimate Population Age 25+ 9,896 73,662 146,511

Elementary (0-8) 6.71% 9.20% 10.16%

Some High School (9-11) 10.23% 11.01% 11.31%

High School Graduate (12) 30.31% 28.15% 27.28%

Some College (13-15) 22.68% 22.81% 22.76%

Associate Degree Only 7.25% 6.22% 6.16%

Bachelors Degree Only 14.32% 14.60% 14.39%

Graduate Degree 4.96% 5.57% 5.64%

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1#


Income

In 2017, the median household income for your selected geography is

$67,210, compare this to the US average which is currently $56,286.

The median household income for your area has changed by 22.27%

since 2000. It is estimated that the median household income in your

area will be $75,817 five years from now, which represents a change

of 12.81% from the current year.

The current year per capita income in your area is $22,701, compare

this to the US average, which is $30,982. The current year average

household income in your area is $80,163, compare this to the US

average which is $81,217.

Population

In 2017, the population in your selected geography is 16,465. The

population has changed by 65.76% since 2000. It is estimated that the

population in your area will be 18,004.00 five years from now, which

represents a change of 9.35% from the current year. The current

population is 49.50% male and 50.50% female. The median age of the

population in your area is 32.18, compare this to the US average

which is 37.83. The population density in your area is 5,245.03 people

per square mile.

Households

There are currently 4,663 households in your selected geography. The

number of households has changed by 49.36% since 2000. It is

estimated that the number of households in your area will be 5,202

five years from now, which represents a change of 11.56% from the

current year. The average household size in your area is 3.39

persons.

Employment

In 2017, there are 1,618 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

64.52% of employees are employed in white-collar occupations in this

geography, and 35.28% are employed in blue-collar occupations. In

2017, unemployment in this area is 5.11%. In 2000, the average time

traveled to work was 30.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:

51.40% White, 12.62% Black, 0.03% Native American and 14.17%

Asian/Pacific Islander. Compare these to US averages which are:

70.42% White, 12.85% Black, 0.19% Native American and 5.53%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 56.26% of the current year

population in your selected area. Compare this to the US average of

17.88%.

Housing

The median housing value in your area was $135,862 in 2017,

compare this to the US average of $193,953. In 2000, there were

2,531 owner occupied housing units in your area and there were 591

renter occupied housing units in your area. The median rent at the

time was $594.

Source: © 2017 Experian

DEMOGRAPHICS

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DEMOGRAPHIC MAP

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N E T L E A S E D D I S C L A I M E R

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has

not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap

makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased 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. Marcus & Millichap 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 net leased 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 net leased 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 tenant 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 tenant 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 lease, including the likelihood of locating a replacement tenant if the current tenant should

default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant 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 Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind

of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

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Confidentiality and Disclaimer

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the

party receiving it from Marcus & Millichap Real Estate Investment Services, Inc. ("Marcus & Millichap") and should not be made available to any

other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary,

unverified 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. Marcus & Millichap 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, PCB's or

asbestos, the compliance with 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 Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not

verify, any of the information contained herein, nor has Marcus & Millichap 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate

Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

THE TEXAS REAL ESTATE COMMISSION (TREC) REGULATES REAL ESTATE BROKERS AND SALES AGENTS, REAL ESTATE

INSPECTORS,HOME WARRANTY COMPANIES, EASEMENT AND RIGHT-OF-WAY AGENTS AND TIMESHARE INTEREST PROVIDERS.

YOU CAN FIND MORE INFORMATION AND CHECK THE STATUS OF A LICENSE HOLDER AT WWW.TREC.TEXAS.GOV. YOU CAN SEND

A COMPLAINT AGAINST A LICENSE HOLDER TO TREC. A COMPLAINT FORM IS AVAILABLE ON THE TREC WEBSITE. TREC

ADMINISTERS TWO RECOVERY FUNDS WHICH MAY BE USED TO SATISFY A CIVIL COURT JUDGMENT AGAINST A BROKER, SALES

AGENT, REAL ESTATE INSPECTOR, OR EASEMENT OR RIGHT-OF-WAY AGENT, IF CERTAIN REQUIREMENTS ARE MET. IF YOU HAVE

QUESTIONS OR ISSUES ABOUT THE ACTIVITIES OF A LICENSE HOLDER, THE COMPLAINT PROCESS OR THE RECOVERY FUNDS,

PLEASE VISIT THE WEBSITE OR CONTACT TREC AT:

TEXAS REAL ESTATE COMMISSION

P.O. BOX 12188

AUSTIN, TEXAS 78711-2188

(512) 936-3000

Non-Endorsement Notice

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The

presence of any corporations logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation

of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely

included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

ABSOLUTE NET LEASE SAM HOUSTON

ACT ID Z0860151

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

36

TEXAS BROKERAGE | SERVICES FORM

INFORMATION ABOUT BROKERAGE SERVICESTexas 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 the 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;

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Information available at www.trec.texas.govRegulated by the Texas Real Estate Commission

IABS 1-0

Marcus & Millichap 9002994 [email protected] 972-755-5200Licensed Broker /Broker Firm Name or Primary Assumed Business Name License No. Email Phone

Tim A. Speck 432723 [email protected] 972-755-5200Designated Broker of Firm License No. Email Phone

Ford Noe 709695 [email protected] 713-452-4200Licensed Supervisor of Sales Agent/Associate License No. Email Phone

David Fisher 691654 [email protected] 832-442-2828

▪ 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:• that the owner will accept a price less than the written asking price;• that the buyer/tenant will pay a price greater than the price submitted in a written offer; and• 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 subagentcan 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.

____________/____________/____________/____________ __________Buyer / Tenant / Seller / Landlord Initials Date

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Activity ID: Z0860151

www.MarcusMillichap.com

David Fisher, CCIM

Fuel | Convenience Center Investments

Tel: (832) 442-2828

Fax: (832) 442-2810

Marcus & Millichap

1450 Lake Robbins Rd. Suite 300

The Woodlands, TX 77380

[email protected]

Licenses: CA 691654, TX 691654

P R E S E N T E D B Y

absolute net lease s. sam houston · 2018. 9. 14. · offering summary charlotte nnn investment...

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