waterford square -...

WATERFORD SQUARESAN ANTONIO, TX

EXECUTIVE SUMMARY

WATERFORD SQUAREInformation contained was obtained from sources believed reliable, However, REATA Real Estate Services, LP, makes no guarantees, warranties or representations as to the completeness or accuracy thereof. The presentation of this project is submitted subject to the errors, omissions and change of price or conditions prior to lease or withdrawal. ©REATA Real Estate Services, LP

WATERFORD SQUARE EXECUTIVE SUMMARY

4202—4254 THOUSAND OAKS DRIVE

SAN ANTONIO, TX 78217

presented by

KEVIN CATALANI SENIOR VICE PRESIDENT INVESTMENT SALES 210.841.3237 [email protected]

REATA REAL ESTATE INVESTMENT SALES 1100 NE Loop 410, Suite 400 San Antonio, TX 78209

TEL 210.930.4111

FAX 210.930.1114

REATAREALESTATE.COM

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SSECTION I INVESTMENT HIGHLIGHTS

SECTION II PROPERTY OVERVIEW Site Description Map Aerial Site Plan Photos

SECTION III FINANCIAL OVERVIEW Financial Summary & Pricing* Rent Roll* Cash Flow Statement* Expense Detail & Assumptions*

SECTION IV TRADE AREA OVERVIEW San Antonio Market Overview Demographics

SECTION V AGENCY DISCLOSURE

SECTION VI CONFIDENTIALITY AGREEMENT

*Access to financial details requires execution of CONFIDENTIALITY AGREEMENT in Section VI.

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REATA Investment Sales has been exclusively retained to offer for sale Waterford Square (the “Property”), a 60,894 SF, value-add retail center in San Antonio, TX. Waterford Square is located along Thousand Oaks Drive and Bulverde Road in the city’s northeast side. With a strong demographic profile and powerful retailers H-E-B and Walmart Supercenter surrounding the project, Waterford Square is ideally positioned to offer investors a significant value creation opportunity.

INVESTMENT HIGHLIGHTS

SIGNIFICANT VALUE-ADD POTENTIALCurrently 65% occupied, Waterford Square provides the opportunity to create significant value through the lease-up of the 20,823 SF currently vacant space. Upon stabilization, the Property boasts a pro-forma cap rate north of 13.00% at asking price.

DEEP DISCOUNT TO REPLACEMENT COSTWaterford Square is being offered at $66.67 PSF to the building, considerably less than today’s replacement cost.

INFILL LOCATION WITH STRONG DEMOGRAPHICSThe Property is located at the intersection of Thousand Oaks Drive and Bulverde Road in the city’s northeast trade area. This infill location is home to over 257,000 people within five miles of the center, as well as a daytime population of more than 133,000. Additionally, the average household income for the immediately surrounding area is $72,659.

SUBSTANTIAL RETAIL TRAFFIC Waterford Square benefits from significant retail traffic due to the presence of Walmart Supercenter, H-E-B and a number of fast food concepts at the intersection of Thousand Oaks Drive and Nacogdoches Road.

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PRICING

ASKING PRICE$4,060,000

ASKING PRICE PSF$66.67

IN-PLACE CAP RATE7.05%

PRO-FORMA CAP RATE13.13%

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SITE DESCRIPTION

ADDRESS 4202—4254 Thousand Oaks Drive San Antonio, TX 78217

BEXAR CAD PROPERTY ID 646226

YEAR BUILT 1983

GLA 60,894 SF

PERCENT LEASED 65.80%

KEY TENANTS Frost Bank, H&R Block, Pizza Hut and State Farm

LAND AREA 6.51 Acres

TRAFFIC COUNTS Thousand Oaks Drive, east of Bulverde Road 24,654 CPD Bulverde Road, south of Thousand Oaks Drive 9,880 CPD Perrin Beitel Road, south of Thousand Oaks Drive 19,905 CPD Nacogdoches Road, north of Thousand Oaks Drive 24,327 CPD

DEMOGRAPHIC SNAPSHOT 1 Mile 3 Miles 5 Miles

2017 Estimated Population 12,424 106,437 257,762

2017 Estimated Households 4,906 40,405 97,181

Daytime Population 4,498 42,914 130,521

Average Household Income $55,562 $68,932 $72,659

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9,880 CPD

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24,654 CPD

19,905 CPD

24,327 CPD

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WSITE PLAN

SUITE TENANT SF

4202 ZOMBIES BAR & LIVE MUSIC VENUE 3,109

4206 AVAILABLE 1,385


4210 NEWELL JACKSON BARBER SHOP 1,308

4212 INKSELL 3,862

4214 FROST BANK 3,687

SUITE TENANT SF


4218 VERTICAL CHURCH 6,316


4222 INKSELL COMPUTER SERVER EXPANSION 2,105

4228 STATE FARM INSURANCE 1,051

4230 H&R BLOCK 1,897

SUITE TENANT SF

4232 PIZZA HUT 1,455

4234 HENRY’S LIQUOR 1,382

4,236 AVAILABLE 3,525


4250 THE JAZZHOUSE & BISTRO 9,633

4252 STEINOLFSON ADULT DAY CARE SERVICES 4,266


SUITE 4228 — 1,051 SF

VERTICAL CHURCHSUITE 42186,316 SF

SUITE 42123,862 SF

STEINOLFSON ADULT DAY CARE

SERVICESSUITE 42524,266 SF

AVAILABLESUITE 42542,537 SF

AVAILABLESUITE 4242 — 1,540 SF

ZOMBIES BAR & LIVE MUSIC VENUE

SUITE 42023,109 SF

SUITE 42143,687 SF

SUITE 42301,897 SF

SUITE 42321,455 SF

HENRY’SLIQUOR

SUITE 42341,382 SF

THE JAZZHOUSE& BISTRO

SUITE 4250 — 9,633 SF




BARBER SHOPSUITE 4210 — 1,308 SF


AVAILABLESUITE 4206 — 1,385 SF

INKESELL COMPUTER SERVER

EXPANSIONSUITE 42222,150 SF

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PRICING

GLA PERCENT LEASED IN-PLACE NOI PRO-FORMA NOI

60,894 SF 65.80% $286,305 $533,238

ASKING PRICE ASKING PRICE PSF IN-PLACE CAP RATE PRO-FORMA CAP RATE

$4,060,000 $66.67 7.05% 13.13%

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SAN ANTONIO MARKET OVERVIEW

San Antonio is the nation’s seventh largest city and the second-most populous in both Texas and the Southern United States. Found-ed as a Spanish mission and colonial outpost in 1718, the city became the first chartered civil settlement in Texas in 1731, making it the state’s oldest municipality. The city’s deep his-tory contrasts strongly with its rapid growth: it was the fastest growing of the top ten larg-est cities in the United States from 2000 to 2010, and the second from 1990 to 2000.

San Antonio is the center of the San Antonio–New Braunfels Metropolitan Statistical Area (MSA). Commonly referred to as Greater San Antonio, it has a population of nearly 2.5 mil-lion people making it the 24th largest MSA in the country. The San Antonio-New Braunfels MSA encompasses eight counties and is sit-uated in South-Central Texas along the I-35 corridor 200 miles west of Houston, 280 miles southwest of Dallas and 84 miles south of Austin.

The MSA is centrally located between the East and West Coasts, with close proximi-ty to Mexico. Due to its central location and positioning along Interstate 35, more than half of the total goods flowing between the U.S. and Mexico travel through San Antonio before reaching their final destination. San Antonio is also home to a number of national landmarks and famous attractions, making it Texas’ most visited city with about 32 million visitors annually.

San Antonio benefits greatly from the city’s close proximity to Mexico and the cost ad-vantages of living in this unique city. The economy of San Antonio is a healthy mix of financial services, government services, man-ufacturing, education and health care, biosci-ences, communications, oil & gas and tourism industries. San Antonio is home to five For-tune 500 companies including Valero Ener-gy, Acelity, USAA, NuStar Energy and Clear Channel Communications. In addition, other

major companies call San Antonio home for their corporate headquarters, including H-E-B and Rackspace.

According to the Council for Community and Economic Research, the cost of living is near-ly 12.5 percent below the national average, allowing residents and companies alike to enjoy affordable living in a cultural and busi-ness-savvy environment. Home prices in San Antonio are more than 35 percent below the U.S. median and are less than half the cost of comparable housing in some cities in Califor-nia and the East Coast.

In recent years, San Antonio has been among the top of a number of economic indicator rankings including Milken Institute’s list of top performing cities (#1 in 2011), Brookings Institution’s top-economic performer list and Forbes list of America’s Fastest Recovering Cities (#2 in 2009).

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CORPORATE HEADQUARTERS IN SAN ANTONIOCOMPANY BUSINESS EMPLOYED IN SAN ANTONIO

H-E-B Super Market Chain 20,000

USAA Financial Services and Insurance 17,163

Cullen / Frost Bankers Financial Services 3,982

Bill Miller Bar-B-Q Fast Food Chain 3,540

Rackspace IT Managed Hosting Solutions 3,300

CPS Energy Utilities 3,022

Toyota Motor Manufacturing Auto Manufacturing 2,900

Clear Channel Communications, Inc. TV & Radio Stations, Outdoor Ads 2,800

Southwest Research Institute Applied Research 2,715

Valero Energy Oil Refinery & Gasoline Mktg. 1,653

Harland Clarke Check Printing 1,500

Acelity Medical Supplies 1,400

Andeavor Oil Refiner & Petroleum Products 1,300

Security Service Federal Credit Union Financial Institution 1,200

Source: San Antonio Economic Development Foundation. Updated October 2017.

MAJOR REGIONAL EMPLOYERS IN SAN ANTONIOCOMPANY BUSINESS EMPLOYED IN SAN ANTONIO

Lackland Air Force Base Military 37,097

Fort Sam Houston Military 32,000

H-E-B Super Market Chain 20,000

USAA Financial Services and Insurance 17,163

Northside Independent School District School District 12,751

Randolph Air Force Base Military 11,068

North East Independent School District School District 10,052

City of San Antonio City Government 9,145

Methodist Healthcare System Health Care Services 8,960

San Antonio Independent School District School District 7,000

Source: The 2016 Book of Lists, The San Antonio Business Journal

FORTUNE 500 COMPANIES HEADQUARTERED IN SAN ANTONIOCOMPANY RANK

Valero Energy 32

Acelity 98

USAA 114

CST Brands 299

iHeartMedia 414

Source: Fortune Magazine, 2016

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Demographic Source: Applied Geographic Solutions 04/2017, TIGER Geography page 1 of 1©2017, Sites USA, Chandler, Arizona, 480-491-1112

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SUMMARY PROFILE2000-2010 Census, 2017 Estimates with 2022 ProjectionsCalculated using Weighted Block Centroid from Block Groups

Lat/Lon: 29.5527/-98.4105RS1

Waterford Square1 mi radius 3 mi radius 5 mi radius

4242 Thousand Oaks, San Antonio, TX 78217

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2017 Estimated Population 12,424 106,437 257,762

2022 Projected Population 13,567 116,111 281,624

2010 Census Population 11,395 98,776 235,284

2000 Census Population 11,174 92,742 209,656

Projected Annual Growth 2017 to 2022 1.8% 1.8% 1.9%

Historical Annual Growth 2000 to 2017 0.7% 0.9% 1.3%

2017 Median Age 34.7 35.7 35.9

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2017 Estimated Households 4,906 40,405 97,181

2022 Projected Households 5,185 42,700 102,767

2010 Census Households 4,701 39,126 92,754

2000 Census Households 4,521 35,834 82,072

Projected Annual Growth 2017 to 2022 1.1% 1.1% 1.1%

Historical Annual Growth 2000 to 2017 0.5% 0.8% 1.1%

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2017 Estimated White 68.0% 71.2% 70.8%

2017 Estimated Black or African American 12.4% 10.7% 11.4%

2017 Estimated Asian or Pacific Islander 2.3% 3.3% 3.7%

2017 Estimated American Indian or Native Alaskan 0.7% 0.7% 0.7%

2017 Estimated Other Races 16.6% 14.1% 13.4%

2017 Estimated Hispanic 50.1% 45.0% 43.3%

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2017 Estimated Median Household Income $49,027 $62,472 $63,966

2017 Estimated Per Capita Income $21,945 $26,197 $27,484

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2017 Estimated Elementary (Grade Level 0 to 8) 4.5% 3.7% 4.0%

2017 Estimated Some High School (Grade Level 9 to 11) 8.9% 5.0% 4.9%

2017 Estimated High School Graduate 32.7% 27.7% 25.6%

2017 Estimated Some College 25.5% 26.7% 26.5%

2017 Estimated Associates Degree Only 9.0% 9.8% 9.2%

2017 Estimated Bachelors Degree Only 13.2% 18.9% 19.8%

2017 Estimated Graduate Degree 6.3% 8.2% 10.1%

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S 2017 Estimated Total Businesses 530 3,823 11,849

2017 Estimated Total Employees 4,498 42,914 130,521

2017 Estimated Employee Population per Business 8.5 11.2 11.0

2017 Estimated Residential Population per Business 23.4 27.8 21.811

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AGENCY DISCLOSURE

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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 rep-resents):• 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 agree-ment. A buyer’s agent must perform the broker’s min-imum 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 trans-action. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. A broker who acts as an intermediary:• Must treat all parties to the transaction impartially and

fairly;• May, with the parties’ written consent, appoint a differ-

ent 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 writ-ing 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 agree-ment to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.

TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH:

• The broker’s duties and responsibilities to you, and your obligations under the representation agreement.

• Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.

LICENSE HOLDER CONTACT INFORMATION: This no-tice is being provided for information purposes. It does not create an obligation for you to use the broker’s ser-vices. Please acknowledge receipt of this notice below and retain a copy for your records.

Licensed Broker/Broker Firm Name or Primary Assumed Business Name

License Number Email PhoneREATA Real Estate Services, LP 9002891 [email protected] 210.930.4111

Designated Broker of Firm License Number Email PhoneThomas C. Tyng, Jr. 0406718 [email protected] 210.930.4111

Buyer/Tenant/Seller/Landlord Initials Date

Sales Agent License Number Email PhoneKevin Catalani 590070 [email protected] 210.930.4111

Sales Agent License Number Email Phone

Sales Agent License Number Email Phone

REGULATED BY THE TEXAS REAL ESTATE COMMISSION. INFORMATION AVAILABLE AT WWW.TREC.TEXAS.GOV IABS 1-0 02/16/16

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AGENCY DISCLOSURECONFIDENTIALITY AGREEMENT

THIS CONFIDENTIALITY AGREEMENT (this “Agreement”) shall pertain to certain investment information whether furnished before or after the date hereof, and regardless of the manner in which it is furnished (the “Offering Information”) to be forwarded to:

(the “POTENTIAL PURCHASER”) regarding the purchase of the property known as WATERFORD SQUARE located in SAN ANTONIO, TX (the “Property”).

The Offering Information contains selected information pertaining to the Property and has been prepared by REATA Real Estate Services, agent of the Owner (the “BROKER”) and the Owner. The Offering Information does not, however, purport to be all-inclusive or contain all of the due diligence information which a prospective purchaser may require to make an informal acquisition decision. Neither the Owner nor the Broker, or any of their officers, employees, or agents makes any representation or warranty expressed or implied, as to the accuracy or completeness of the Offering Information, and no legal liability is assumed to be implied with respect thereto.

By executing this Agreement, Potential Purchaser requests the delivery of the Offering Information and agrees that the Offering Information and its contents are confidential, that it will hold and treat the Offering Information in the strictest of confidence, that it will not directly or indirectly disclose, or permit anyone else to disclose, the Offering Information or its contents to any other person, firm, or entity, without prior written authorization of the Owner and Broker, and that it will not use or permit to be used the Offering Information (i) for any purpose other than to evaluate the Property for purchase, or (ii) in any fashion or manner detrimental to the interest of the Owner or Broker. Photocopying or other methods of duplication of the Offering Information is strictly prohibited.

By executing this Agreement, Potential Purchaser acknowledges and agrees to the following with regard to the Property: (1) the unauthorized disclosure of the Offering Information may cause the Owner or the Broker irreparable harm for which money damages may not be an adequate remedy, and without prejudice to the rights and remedies otherwise available to the Owner or Broker, Owner or the Broker shall be entitled to equitable relief (in addition to any monetary damages) by way of injunction if the Potential Purchaser or any of their representatives breach or threaten to

breach any of the provisions of this Agreement; and (2) Potential Purchaser shall INDEMNIFY, DEFEND and HOLD HARMLESS the Owner or Broker for any loss, cost or damages incurred by the Owner and the Broker for any breach of this Agreement by Potential Purchaser or its representatives (including reasonable attorneys’ fees). In the event Potential Purchaser elects not to pursue the purchase of the Property, Potential Purchaser agrees to immediately return the Offering Information to the Broker at the following address:

OWNER OR BROKER c/o REATA Real Estate Services, L.P. 1100 NE Loop 410, Suite 400 San Antonio, TX 78209

This Agreement shall be governed by and construed in accordance with the laws of the State of Texas, without giving effect to principles or rules of conflict of laws to the extent such principles or rules would require or permit the application of the laws of another jurisdiction. Exclusive venue for all legal proceedings brought by either party for the enforcement of this Agreement or the interpretation or construction of the terms and provisions hereof shall be brought in a court of competent jurisdiction in Bexar County, TX.

In the event that one or more of the provisions in this Agreement shall, for any reason, be held by a court of competent jurisdiction to be invalid, void or unenforceable in any respect, such holding shall not affect any other provisions of this Agreement.

This Agreement may be executed in two or more counterparts, and contains the entire agreement between Potential Purchaser, the Owner and Broker concerning the Offering Information. No modification of this Agreement or waiver of the terms and conditions hereof shall be binding upon Potential Purchaser, the Owner or the Broker, unless approved in writing by the Owner. This Agreement shall be binding upon and inure solely to the benefit of each party hereto and their respective affiliates, successors and assigns, and nothing herein, express or implied, is intended to or shall confer upon any other person any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.

The term of this Agreement shall expire upon the third (3rd) anniversary of the Effective Date.

AGREED AND ACCEPTED THIS DAY OF , 2017 (THE EFFECTIVE DATE).

POTENTIAL PURCHASER:

SIGNATURE NAME TITLE

ADDRESS

PHONE FAX EMAIL

BROKER ACKNOWLEDGEMENT: REATA Real Estate Services, L.P

SIGNATURE NAME Kevin Catalani TITLE Senior Vice President Investment Sales

OUR MISSION is to provide excellent real estate services to both external and internal customers while building a lasting

Company committed to profitability and opportunity.

We strive for the highest standards of service, integrity and accountability to our EMPLOYEES, CLIENTS and PARTNERS.

http://www.linkedin.com/company/2816184?trk=tyah

https://www.facebook.com/pages/REATA-Real-Estate/124763197680946

http://www.reatarealestate.com/

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