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510 Gray Street Houston, TX

CONFIDENTIAL OFFERING MEMORANDUM

MIDTOWNCROSSING

5343 Spring Valley Road, Dallas, TX 75254Real Estate Investment Services → Representation → Advisory Services → www.EVTRS.com

NET OPERATING

INCOME:$268,438

GROSS LEASEABLE

AREA:14,544 SF

OCCUPANCY: 100%

PRICE PSF: $276.91

5 YEAR IRR: 9.45%

10 YEAR IRR: 11.19%

PRO-FORMA CASH ON

CASH RETURN:6.29%

TOTAL 2020 YIELD

INCLUDING PRINCIPAL:9.65%

510 Gray StreetHouston, TX

EXECUTIVE SUMMARY

EVERTRUST REALTY ADVISORS has been retained by the

owners to EXCLUSIVELY market Midtown Crossing (the

“Property”) to qualified investors. The opportunity presented is to

acquire a Class A, 100% leased retail plaza, located right on the

border of Midtown and Downtown Houston, Texas.

Midtown Crossing has a highly coveted location at the SE corner

of Gray Street and Brazos Street, within of of the most

established, infill areas of the city known as Midtown. Midtown

Crossing is conveniently located near many of the cities busiest

freeways including interstate 45, Highway 59 and Highway 69.

The property has an ideal mix of national, regional and local

retailers. The Property is subject to a ground lease with an

expiration date of February 28, 2034 with four 5-year renewal

options. The acquisition of Midtown Crossing provides investors

with the opportunity to acquire an exceptionally located retail

center with a secure income stream.

MIDTOWNCROS S ING

OFFERING SUMMARY

PRICE: $4,095,000

CAP RATE: 6.56%


EXECUTIVE SUMMARY

Midtown Crossing is 100 % occupied by a dynamic mix of national, regional and

local retailers including Buffalo Wild Wings, Gyu-Kaku Japanese BBQ, Which

Wich, One Dim Sum and River Oaks Cleaners.

Midtown retail is characterized by small freestanding developments. Retailers are

typically local boutiques and restaurants/bars, as well as the imminent arrival of the

areas first Whole Food’s. The restaurant and service tenants ideally cater to the

surrounding office and multifamily users by being a convenient, walkable

destination for residents and employees. Midtown has a high density of apartment

units, which is great for all tenants in the property. Retail demand is further

increasing as 3,000 more units are being developed in Midtown by 2022.

Midtown Crossing has an infill location adjacent to downtown in Midtown. Real

Estate in this exclusive area benefits from high barriers of entry to limit future

competition. The scarcity of available land for new developments and retail

developers being outbid by multifamily and office further limit competition.

❖ Stable Investment – Weighted Average Lease Term of 3.99 Years

❖ High Barriers to Entry due to Construction Pricing and Market Rents

❖ Plenty of Parking Available

❖ 5,000 Apartment Units in Midtown

❖ 3,000 Apartment Units will come online by 2022


PROPERTY DETAILS

PROPERTY OVERVIEW

ADDRESS510 Gray Street

Houston, TX 77002

MARKET Houston

SUBMARKET Midtown

LAND AREA 1.248 Acres

RENTABLE SQUARE FEET 14,788 SF

GROSS SQUARE FEET 14,788 SF

OCCUPANCY 100%

NUMBER OF FLOORS 1-Story Retail Strip Center

YEAR BUILT 2004

YEAR RENOVATED -

TOTAL PARKING SPACES 61 Spaces

RATIO 4.12 Spaces/1,000 SF

SPACES 5 Suites

WALT 3.99 Years

ZONING None

PROPERTY OVERVIEW

TRAFFIC COUNTS:Gray Street: 26,858 VPD Brazos Street: 13,187 VPD

Smith Street: 35,765 VPD Interstate 45: 227,000 VPD

INGRESS/EGRESS:4 Primary Access Points

Positioned at 3 intersections with Signal Lights

FLOOD PLAN:

Located Zone X = 0.2% Annual Chance

Floodplain. Property did not flood in 2017 from

Hurricane Harvey

GROUND LEASE

Midtown Crossing is controlled through a ground lease with an initial term starting

November 1, 2003 and expiration occurring February 28, 2034 with an additional

four 5-year renewal options. The ground lease expense is not recoverable by tenancy.

PERIOD EFFECTIVE DATE ANNAUAL RENT

Years 1-5 11/3/2003 $140,000

Years 6-10 3/1/2009 $155,000

Years 11-15 3/1/2009 $175,000

Years 16-20 3/1/2019 $182,000

Years 21-25 3/1/2024 $191,000

Years 26-30 3/1/2029 $201,000

Years 31-35 (Option 1) 3/1/2034 $225,000

Years 36-40 (Option 2) 3/1/2039 $236,000

Years 41-45 (Option 3) 3/1/2044 $248,000

Years 46-50 (Option 4) 3/1/2049 $260,000


510 Gray Street, Houston, TX

REGIONAL MAP


LOCAL MAP


Downtown Houston

Midtown Houston

Montrose Houston

4th Ward Houston

Washington/ Rice VillageHouston



AERIAL MAP

WASHINGTON/ RICE VILLAGE Houston

4TH WARD Houston


PROPERTY PHOTO



TENANT OVERVIEW

Which Wich is an international chain of

neighborhood sandwich stores founded by

restaurateur Jeff Sinelli, CEO of Genghis

Grill, in 2003, Which Wich began with one

location in downtown Dallas, Texas. It

began franchising in 2005 and was

purchased by Tesco in 2011. The company

is known for giving customers complete

control and the time they need to create the

sandwich they want.

SIZE 1,687 SF

% of GLA 11.4%

MOVE IN DATE OCTOBER 2009

LEASE EXPIRATION OCTOBE 2021

# of STORES 431

WEBSITE: WHICHWICH.COM

Buffalo Wild Wings, Inc. and their

subsidiaries operate under the names

Buffalo Wild Wings, PizzaRev and Rusty

Taco. Buffalo Wild Wings opened their

doors in 1982 in Columbus, Ohio. Buffalo

Wild Wings is an established and growing

owner, operator and franchisor of

restaurants known for their wings, beer and

sports. Buffalo Wild Wings, has a

welcoming neighborhood atmosphere with

a front-row seat for every sports fan that

offers 21 mouth-watering signature sauces

and seasonings.

SIZE 5,951 SF

% of GLA 40.2%

MOVE IN DATE AUGUST 2004

LEASE EXPIRATION JULY 2024

# of STORES 1,250

WEBSITE: BUFFALOWILDWINGS. COM

Gyu-Kaku provides the authentic Japanese

Yakiniku (barbeque) dining experience

where customers share premium cooked

meats over a personal flaming charcoal

grill installed at every table. Gyu-Kaku

offers a wide range of meats and other

popular items including pork, lamb, duck,

chicken, shrimp and a variety of

vegetables. The company has 800 locations

worldwide as a part of Reins International

Inc. The award winning restaurant is

known for their fun social dining

experience.

SIZE 3,500 SF

% of GLA 23.7%

MOVE IN DATE OCTOBER 2012

LEASE EXPIRATION SEPTEMBER 2023

# of STORES 800

WEBSITE: GYU-KAKU.COM


TENANT OVERVIEW

Once known as the cheapest Michelin Star

restaurant in the world winning awards in

2011 and 2012. One Dim Sum grew in

popularity and fame in its first location in

Prince Edward, Hong Kong. Now, with

their first US location, One Dim Sum

offers high quality, affordable dim sum to

Houstonians. The authentic flavors and

original essence of each dish with

garnishing creates dishes with an artistic

visual experience.

SIZE 2,600 SF

% of GLA 17.6%

MOVE IN DATE MAY 2019

LEASE EXPIRATION MAY 2025

# of STORES 2

WEBSITE: ONEDIMSUM.COM

River Oaks Cleaners opened its doors back

in February 1989, when the Momin Family

envisioned of providing spotless dry

cleaning for a small neighborhood in

Houston, TX. After 13 successful years of

operation, River Oaks Cleaners began

expansion in 2002 into additional locations

servicing the greater Houston communities.

Today, with 11 locations and growing,

River Oaks Cleaners has become a part of

the neighborhoods it serves.

SIZE 1,050 SF

% of GLA 7.1%

MOVE IN DATE NOVEMBER 2009

LEASE EXPIRATIONOCTOBER 2019

(MTM)

# of STORES 11

WEBSITE: RIVEROAKSCLEANERS.COM


MARKET OVERVIEW HOUSTON

4th Largest City in U.S.

6.89 Million – Current Residents

8.87 Million - 2030 Projected Population

Headquarters 31 Fortune 500 Companies

Energy Capital of the World

Home to NASA - Johnson Space Center

World’s Largest Medical Complex

ECONOMIC POWERHOUSE

Houston is firmly established as a premier global city and is a leading

destination for investment by all capital sources due to its unique

combination of stability and dynamic growth.

Houston serves as a major national distribution channel for the United

States, Canada, and Mexico.

Houston Fortune 500 Companies

MANUFACTURING

HEALTHCARE

TECHNOLOGY

AEROSPACE

OIL & GAS

INSURANCE

REAL ESTATE

RETAIL

NO STATE INCOME TAX

#1Nations Best Cities for Millennials

#2Least Expensive Real Estate

Markets.

Top Metro for Economic Job Growth

#12019’s Most Diverse Cities in the U.S.

#2Cost of Living –Cities Where Paychecks Go Far


SUBMARKET OVERVIEW MIDTOWN

Midtown is a neighborhood in Houston, Texas that is a thriving, pedestrian-friendly, urban community which offers residents a live, work, play environment in a walkable setting.

The area is filled with a wide range of restaurants, bars, shopping, arts and entertainment, parks and major employers creating around the clock consumer traffic.

Living in Midtown offers residents an urban feel and is filled with young professionals. 73% of residents rent their apartments/homes with a median rent of $1,302.

The Property has direct rail, auto and bike access to the CBD, Buffalo Bayou, Museum District, Hermann Park and Rice University.

13,660 - Current Residents

5,047 Apartment Units

118,000 SF of Banking Facilities

87,000 SF of Restaurant Space

49.6 Million SF of Office Space

MIDTOWN RETAIL MARKET

Existing Supply (SF)

Occupancy

Avg. Asking Rent (NNN, $PSF)

YTD Absorption (SF)

YTD Deliveries (SF)

2,072,295

94.3 %

$25.51

(7,424)

0

#3Best Neighborhood for Young Professionals in Houston

#13Best Neighborhood to Raise a Family in Houston

MIDTOWN RANKINGS

#5Best Metro for Retail Investment

#6Best Neighborhood to Live in Houston

CONTACT INFORMATION

Bruce Marshall

Managing Partner

214-261-6306

[email protected]

5343 Spring Valley Road, Dallas, TX 75254

Real Estate Investment Services → Representation → Advisory Services → www.EVTRS.com

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