jiffy lube austin, texas - matthews real estate …€¦ · · 2017-09-11austin, tx 78727 list...

| JIFFY LUBE |Austin, Texas

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OFFERING MEMORANDUM

Jiffy Lube2516 W Parmer Ln. | Austin, TX

https://www.youtube.com/watch?v=2Jmf3HwqblA&feature=youtu.be

| OFFERING MEMORANDUM |< 2 >

Exclusive Listing Agent: DALTON BARNESSenior [email protected] 214.692.2930MOB 925.234.1772LIC # 01984625 (CA)

KYLE MATTHEWSBROKER OF RECORD

LIC # 9005919 (TX)

Contents Asset Overview3 Financial Overview4 Property Features5Tenant Report6 Area Overview8

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| JIFFY LUBE |Austin, Texas < 3 >

ASSET OVERVIEWINVESTMENT HIGHLIGHTS

• Tenant recently extended the base term of the lease early through 2028, for a total of 11 years, showing incredible commitment to this location

• Bond-like, absolute NNN, investment. Perfect for an investor looking for a coupon-clipper with no landlord responsibilities

• Ideal property for investors who are looking to fulfill a 1031 exchange with a truly passive asset

LOCATION HIGHLIGHTS

• Extremely dense population infill +105k people living within 3-miles and is expected to grow by +16% over the next 5 years

• The property is located on the hard signalized-corner of W. Parmer Ln. (±50,000 VPD) and the Northbound service road for the Mopac Expressway (100,000 VPD)

• Highly desirable location. Surrounding retailers include: H-E-B Grocery, Panda Express, Wendy’s, Chick-fi-A, Harbor Freight Tools, Taco Cabana, FedEx, Bank of

America, BBVA, Subway and GNC

• The property performs Texas state vehicle inspections (a requirement for car registration in Texas) and is located 0.5 miles from the only Texas Department of

Transportation office for 8 miles to the north or 12 miles to the south

• Austin, TX was deemed the fastest growing MSA in 2016 in by Forbes due to the rapidly expanding economy and very affordable cost of living

TENANT HIGHLIGHTS

• Operated by Heartland Automotive, Inc. - the largest franchisee in the Jiffy Lube system with over 530 locations across the US

• One of the few retail tenants that offers both an e-commerce and recession proof investment

• Environmental Indemnification - Per the lease, tenant protects landlord from responsibility of environmental contamination by tenant**

**Buyer to confirm


W Parmer LaneAustin, TX 78727

List Price ......................................................................................................$2,219,496 CAP Rate - Current ............................................................................................. 5.75%

Gross Leasable Area .................................................................................. ± 1,815 SF

Lot Size ............................................................................. ± 0.55 Acres (23,740 SF)

Year Built ................................................................................................................. 1995

Tenant Summary

Tenant Trade Name Jiffy Lube

Type of Ownership Fee Simple

Lease Guarantor Heartland Automotive, Inc.

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 20 Years

Lease Commencement Date 8/16/1995

Rent Commencement Date 8/16/1995

Lease Expiration Date 12/31/2028

Term Remaining on Lease ± 11.25 Years

Increases 10% increases in the option periods

Options Two, 5-Year Options

Monthly Rent Annual Rent Rent/SF Cap Rate

Current $10,635 $127,621 $70.31 5.75%

Option 1 $11,698 $140,383 $77.35 6.33%

Option 2 $12,868 $154,421 $85.08 6.96%

ANNUALIZED OPERATING DATA

FINANCIAL OVERVIEW


THE OFFERING

PARCEL MAP

Property Name Jiffy Lube

Property Address2516 W Parmer Ln

Austin, TX 78727

Assessors Parcel Number 02641301320000

Site Description

Number of Stories 1

Year Built 1995

Gross Leaseable Area (GLA) ± 1,815 SF

Lot Size ± 0.55 Acres (23,740 SF)

Type of Ownership Fee Simple

Parking ± 6 Surface Spaces

Parking Ratio 3.31 : 1,000 SF

Landscaping Professional

Topography Generally Level

Construction

Framing Steel

Exterior Masonry

Parking Surface Asphalt

Roof Hip

PROPERTY FEATURES

W Parmer Ln ±50,000 VPD

Mopac Expressway ±100,000 VPD


TENANT REPORT

Company Name Jiffy Lube International, Inc.

Parent Company Trade Name Royal Dutch Shell PLC (ADR)

Ownership Private

No. of Locations ± 2,000

No. of Employees ± 6,538

Headquartered Houston, Texas

Website www.jiffylube.com

Year Founded 1979

A leading provider of oil changes and a subsidiary of Shell Oil Company, Jiffy Lube boasts more than 2,000 outlets led throughout North America that are all independently owned by operators. Besides oil changes, Jiffy Lube facilities provide maintenance services for air conditioning, fuel systems and transmissions. At some of its locations it also performs inspections and emissions testing, repairs windshields and rotates tires. Serving about 22 million customers annually, Jiffy Lube caters to several fleet management firms such as Donlen, Emkay, Voyager and PHH. Heartland Automotive Services, Inc. is a franchisee company that operates over 530 Jiffy Lube locations in the United States.

STRATEGY

Jiffy Lube focuses on its four key areas of preventative maintenance service: change, inspect, check/fill, and clean. The company’s extensive technician training program has made Jiffy Lube an Automotive Service Excellence (ASE) Accredited Training Provider. With a focus on reuse, Jiffy Lube makes a point to collect more used oil than any of its competitors in North America. The oil is then refined and used for making concrete, generating electricity,

and heating asphalt to pave roads.

GEOGRAPHIC OUTREACH

Jiffy Lube has an approximate 2,000 franchised service centers in North America and Canada.

JIFFY LUBE


SURROUNDING TENANTS


AUSTIN, TEXASLocated in Central Texas in the foothills of Texas Hill Country, Austin is the state capital and the cultural and economic center of the Austin-Round Rock metropolitan area. Regarded by most as the best choice in Texas, the Austin area provides residents a balance of a strong economy, good education, attractive housing, a pleasant climate, and plenty to do.

Visitors are welcome to indulge in the rich cultural heritage, plentiful entertainment amenities, unique attractions and outdoor recreation opportunities of this bustling, albeit laid-back, capital city. Surrounded by beautiful natural settings and abundant sunshine, Austin offers an unparalleled quality of life for its low cost of living.

AREA OVERVIEW


TEXAS HILL COUNTRYArguably the most beautiful area in Texas, the Texas Hill Country is a 25-county region of Central and South Texas that extends from just north of Austin down south to San Antonio. Central to Texas, the Hill Country is considered the heart and soul of the state. With over 14,000 square miles of hills, lakes, live oak trees and winding roads, this region attracts millions of people each year, be it for a weekend getaway or a vacation.

Located deep in the heart of this uniquely charming area, the countryside is reminiscent of the wine growing regions of central Italy and the Rhone Valley in France. An array of visually stunning vineyards and wineries are scattered throughout the Hill Country, from downtown Austin to Fredericksburg and Lampasas to New Braunfels. Given that it is one of the fastest growing wine-producing regions in the country, the Hill Country has emerged as one of the top wine destinations in the world, drawing more than five million visitors each year to the Texas Hill Country Wineries.

POPULATION 1-Mile 3-Mile 5-Mile

2022 Projection 19,163 108,929 331,779

2017 Estimate 17,664 99,973 303,637

2010 Census 15,725 86,666 261,560

2000 Census 13,884 76,198 219,627

Growth 2017 - 2022 8.49% 8.96% 9.27%

HOUSEHOLDS 1-Mile 3-Mile 5-Mile

2022 Projection 9,262 50,798 139,981

2017 Estimate 8,538 46,461 127,789

2010 Census 7,594 40,090 109,654

Growth 2017-2022 8.48% 9.34% 9.54%

INCOME 1-Mile 3-Mile 5-Mile

2017 Est. Average Household Income $74,348 $78,621 $77,813

AUSTIN DEMOGRAPHICS


Also referred to as UT Austin, the University of Texas at Austin is the flagship school of the University of Texas System, which includes nine academic universities and six health institutions statewide. Located about one mile from the Texas State Capitol in Austin, this public research university has the seventh-largest single-campus enrollment with over 51,000 students and 3,000 teaching faculty. More than 100 undergraduate and 170 graduate degrees are available to students as well as dozens of top-ranked programs with a proven record of success.

UT Austin continues to expand its facilities on campus and thanks to its proud alumni base of more than 482,000, notably Michael Dell, the new Dell Medical School welcomed its first class of 50 students in June 2016. An abiding symbol of the spirt of Texas, the university cultivates economic and social progress as a leading center of knowledge and innovation.

UNIVERSITY OF TEXAS AT AUSTIN BEST PLACES TO LIVE#1- U.S. NEWS & WORLD REPORT

GROWING BUSINESSES#1-FORBES

SAFEST MAJOR CITY2ND- THE FBI

BUSINESS CLIMATE

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Texas consistently ranks as one of the nation’s most favorable business climates based on its low tax burden and competitive regulatory environment. Austin’s reputation in key industries such as technology, life sciences and advanced manufacturing has shaped a professional climate that attracts new businesses from all over the world.

As a place that has established itself as a world leader of technology, innovation, energy, and workforce development, Austin is a hotbed for creativity and commerce that is spearheading the region’s business expansion and overall growth. Because people want to take advantage of the innovative, entrepreneurial spirit, the capital city continues to be a magnet for business, specifically high tech and small business startups.

Austin is well-positioned to do business with major markets in the United States and Latin America, allowing it to maintain a global competitive advantage. Consequently, the city also features national and global corporations amongst a strong network of independent, unique, locally owned firms and organizations.

In addition to spurring the development that has so greatly expanded this major center for high tech, a proliferation of technology companies gave rise to the region’s nickname: “the Silicon Hills”. High tech industries in the area include enterprise software, semiconductors, corporate R&D, biotechnology, gaming and a variety of startup companies. Meanwhile, companies with operations in the Silicon Hills include 3M, Silicon Labs, Advanced Micro Devices, Apple, Dropbox, eBay, PayPal, Google, Qualcomm, Oracle, Electronic Arts and Samsung Group. Upon accepting a $1.4 million grant to build a downtown office, Facebook arrived in the capital city in 2010. Austin’s Facebook office kept a relatively low profile until 2016 when the company filed building permits to expand its downtown office.

With thousands of graduates each year from the engineering and computer science programs at the University of Texas at Austin, Austin has a steady source of employees that are stimulating the technology and defense industry sectors. UT Austin brings an estimated $60 million in grants from the National Institutes of Health to the city. When added to the recent opening of its new Dell Medical School in mid-2016, which promises to bring even more intellectual property, lab space and grant money, it’s apparent that Austin has all the makings to become the country’s next big biotech hub.

1

State of Texas

2

University of Texas at Austin

3

Dell

4

City of Austin

SIL ICON HILLS


Economic DevelopmentThrough the enactment of a friendly attitude into a business climate, the Austin region asserts that not only will it welcome new businesses, but it will also improve them. The city is a one-of-a-kind place, unique to Texas and to the whole country.

To effectively support and recruit business, the City’s Economic Development Department (EDD) strives to create a sustainable cultural and economic environment that enhances Austin’s strengths. Along with supporting local initiatives through cultural arts, music, downtown redevelopment, economic and small business programs, the EDD has integrated a core global focus to assist local businesses with international expansion and trade and increase jobs and investment in Austin. Via traditional and equity-based approaches, the EDD is leading global business expansion, urban regeneration, small business development, cultural arts and music efforts by fostering novel programs designed to increase the prosperity of Austin’s diverse communities and businesses.

Much like the EDD, the Austin Chamber of Commerce is heading development initiatives to promote regional economic growth, namely Opportunity Austin and Innovate Austin. The Chamber of Commerce has the capacity so support business growth and aims to provide tools and services that will assist with making data-driven decisions when businesses are considering relocating, starting or expanding in the Greater Austin region.

Opportunity Austin a regional five-county strategy for job creation through recruitment and expansion in Central Texas. Working collaboratively with regional partners, the Chamber promotes the Greater Austin area as a cost competitive region for business within key industry segments. Originally launched in 2004, Opportunity Austin is now in its third phase called Opportunity Austin 3.0; This current five-year phase sets out ventures for priorities, including boosting economic diversification, deepening the talent pool and keeping the Greater Austin region attractive to entrepreneurs, business leaders and site selectors through regional collaboration.

Innovate Austin is an economic development plan fixated on making Austin the top region to establish and grow a technology and innovation based business. By providing thought-leadership and strategy, Innovate Austin advocates for the innovation community. The development plan’s primary focus is on attracting and retaining talent, increasing capital, growing and diversifying the innovation ecosystem and leveraging local universities for increase commercialization.

THE BIG PICTUREAUSTIN, TX UNITED

STATES3.5%

2.8%

$66,474

6.3%

1.2%

$64,585

UNEMPLOYMENT RATE

RECENT JOB GROWTH

MEDIAN FAMILY INCOME

OPPORTUNITY AUSTIN 3.0

INNOVATE AUSTIN


This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Jiffy Lube located at 2516 W Parmer Ln, Austin, TX 78727 (“Property”) . I t has been prepared by Matthews Real Estate Investment Services. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Real Estate Investment Services. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Real Estate Investment Services expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Real Estate Investment Services or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T


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EXCLUSIVE LISTING AGENT:

DALTON BARNESSenior Associate

[email protected] 214.692.2930MOB 925.234.1772LIC # 01984625 (CA)

KYLE MATTHEWSBROKER OF RECORDLIC # 9005919 (TX)

Jiffy Lube2516 W Parmer Ln. | Austin, TX

EXCLUSIVE LISTING AGENT:

11-2-2015

Information About Brokerage ServicesTexas law requires all real estate license holders to give the following informaƟon about

brokerage services to prospecƟve buyers, tenants, sellers and landlords.

TYPES OF REAL ESTATE LICENSE HOLDERS: .• A BROKER is responsible for all brokerage acƟviƟes, 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 informaƟon about the property or transacƟon received by the broker; • Answer the client’s quesƟons and present any offer to or counter-offer from the client; and • Treat all parƟes to a real estate transacƟon 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 wriƩen lisƟng to sell or property management agreement. An owner's agent must perform the broker’s minimum duƟes above and must inform the owner of any material informaƟon about the property or transacƟon known by the agent, including informaƟon 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 wriƩen representaƟon agreement. A buyer's agent must perform the broker’s minimum duƟes above and must inform the buyer of any material informaƟon about the property or transacƟon known by the agent, including informaƟon disclosed to the agent by the seller or seller’s agent.

AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parƟes the broker must first obtain the wriƩen agreement of each party to the transacƟon. The wriƩen agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligaƟons as an intermediary. A broker who acts as an intermediary:

• Must treat all parƟes to the transacƟon imparƟally and fairly; • May, with the parƟes' wriƩen 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 instrucƟons of each party to the transacƟon. • Must not, unless specifically authorized in wriƟng to do so by the party, disclose:

ᴑ that the owner will accept a price less than the wriƩen asking price; ᴑ that the buyer/tenant will pay a price greater than the price submiƩed in a wriƩen offer; and ᴑ any confidenƟal informaƟon or any other informaƟon that a party specifically instructs the broker in wriƟng 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 transacƟon 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 duƟes and responsibiliƟes to you, and your obligaƟons under the representaƟon 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 noƟce is being provided for informaƟon purposes. It does not create an obligaƟon for you to use the broker’s services. Please acknowledge receipt of this noƟce below and retain a copy for your records.

Licensed Broker /Broker Firm Name or Primary Assumed Business Name

License No. Email Phone

Designated Broker of Firm License No. Email Phone

Licensed Supervisor of Sales Agent/Associate

License No. Email Phone

Sales Agent/Associate’s Name License No. Email Phone

Regulated by the Texas Real Estate Commission

Buyer/Tenant/Seller/Landlord Initials

InformaƟon available at www.trec.texas.gov IABS 1-0

Date

Kyle Matthews/Matthews Retail Group Inc. 678067 [email protected] (310) 919-5757

Kyle Matthews 678067 [email protected] (310) 919-5757

jiffy lube austin, texas - matthews real estate …€¦ · · 2017-09-11austin, tx 78727 list...

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