Presented By: FOR SALE€¦ · • Ideal 1031 Exchange Property CORPORATE GUARANTEE - LONG...

FOR SALE5656 N. ELDRIDGE PARKWAY, HOUSTON, TX 77041

Presented By:

5656 N. ELDRIDGE PARKWAYHOUSTON, TX 77041

OFFERING MEMORANDUM

EXCLUSIVELY REPRESENTED BY:

Paul BrehmeSenior Vice President

[email protected]

AGT DRE 01476686

This property is listed in conjunction with DFW Lee & Associates, LLC - Houston OfficeFor out of state licensing purposes (TX Lic#9003955)

5656 N. Eldridge Parkway, Houston 3

This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property. This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the “Owner”), to be all- inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition, and other factors beyond the control of the Owner and Lee & Associates. Therefore, all projections, assumptions, and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and otherdocuments of whatever nature independently and not rely on the contents of this Memorandum in any manner. Neither the Owner nor Lee & Associates, nor any of their respective directors, officers, affiliates, or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of real property.The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered, and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold it and treat it in the strictestconfidence and that you will not disclose this Memorandum or any of its contents to any other entity without prior written authorization of the Owner or Lee & Associates. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or Lee & Associates. If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to Lee & Associates.Disclaimer (c)2016 Lee & Associates - Los Angeles West, Inc.The information contained in this document has been obtained from sources believed reliable. While Lee & Associates does not doubt its accuracy, Lee & Associates has not verified it and makes no guarantee, warranty, or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions, or estimates used are for example only and do not represent the current or future performance of the Property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial, and legal advisors. You and your advisors should conduct a careful, independent investigation of the Property to determine to your satisfaction the suitability of the Property for your needs.

CONFIDENTIALITY AGREEMENT


INVESTMENT SUMMARYINVESTMENT HIGHLIGHTS

Price: $2,200,000

NOI: $113,500

Cap: 5.2% (5.6% Potential in 2020)

PROPERTY OVERVIEW

Address: 5656 N. Eldridge Parkway, Houston, TX 77041

Tenant: Jack in the Box (Corporate; S&P BB-)

Guarantor: Jack in the Box, a Delaware Corporation

Building/Lot Size: ± 2,633 SF Building / ± 38,742 SF Lot

Ownership: Fee Simple

Year Built: 2000

TERMS, RENT SCHEDULE & OPTIONS

Lease Commencement: June 2, 2015

Lease Expiration: September 1, 2027 (8 Years, 3 Months Remaining)

Lease Term: 12 Years*

Increases: CPI (or 9% Max) Every 5 Years (Primary & Options)

Lease Type Absolute Triple Net (NNN) - No Landlord Responsibilities

RENT SCHDULE

Primary Term Start Date End Date NOI/Yr NOI/Mo NOI/SF/YR NOI/SF/MO Increase Over Prior Term CAP Rate

*Years 1 - 5 6/2/2015 6/1/2020 $113,500.00 $9,458.33 $43.10 $3.59 5.2%

Years 6 - 10 6/2/2020 6/1/2025 $123,715.00** $10,309.58 $46.99 $3.91 CPI (or 9% Max) 5.6%

Years 11 - 12 6/2/2025 6/1/2027 $134,849.35** $11,237.44 $51.21 $4.27 CPI (or 9% Max) 6.1%

Option Periods - Four (4), Five Year Options

Option 1 6/2/2027 6/1/2030 $134,849.35 $11,237.44 $51.21 $4.27 - -

6/2/2030 6/1/2032 $146,985.79** $12,248.81 $55.82 $4.65 CPI (or 9% Max) 6.7%

Option 2 6/2/2032 6/1/2035 $146,985.79 $12,248.81 $55.82 $4.65 - -

6/2/2035 6/1/2037 $160,214.51** $13,351.21 $60.85 $5.07 CPI (or 9% Max) 7.3%

Option 3 6/2/2037 6/1/2040 $160,214.51 $13,351.21 $60.85 $5.07 - -

6/2/2040 6/1/2042 $174,633.82** $14,552.82 $66.32 $5.52 CPI (or 9% Max) 7.9%

Option 4 6/2/2042 6/1/2045 $174,633.82 $14,552.82 $66.32 $5.52 - -

6/2/2045 9/1/2047 $190,350.86** $15,862.57 $72.29 $6.02 CPI (or 9% Max) 8.7%

* The original 18-year Lease Commencement date was June 2, 2000 at a rate of $4.35/SF. Jack in the Box signed a 12-year lease extension on May 20, 2015 that commenced on June 2, 2015 at a new reduced rate of $3.95/SF.


INVESTMENT HIGHLIGHTS

RENEWED LONG TERM ABSOLUTE NNN LEASE - EXCELLENT RENT GROWTH

• Recently Renewed Long Term Net Lease - Fee Simple - 12 Year Lease with (4) 5-Year Options (8 Years, 3 Months Remaining)

• Rent Growth - The Lease calls for CPI (9% max) Rent Escalations Every 5 years in both the Primary Term and Option Periods

• Absolute NNN Lease provides Landlord with Zero Management Responsibilities• Ideal 1031 Exchange Property

CORPORATE GUARANTEE - LONG OPERATING HISTORY

• Corporate Guarantee with Jack in the Box (S&P: BB-)• Iconic National Brand - Founded in 1951, Jack in the Box is one of the nation’s leading

fastfood hamburger chains, with over 2,200 restaurants in 21 states and Guam• Strong Operating History - Jack in the Box has been succesfully operating at this

location for 19 Years• Commitment to Site - Recent 2015 renewal shows the Tenant’s commitment to the site

HARD CORNER LOCATION - DENSE RESIDENTIAL/COMMERCIAL AREA

• Located at Signalized Intersection of N. Eldridge Pkwy & Tanner Road with combined traffic counts of 48,000 cars per day

• Surrounded by a Dense Residential Housing Market• Close to Commercial/Industrial Park - Nearby Access to Customers• Limited Quick Service Restaurants in the Trade Area• The site is surrounded by affluent, master planned communities

STRONG DEMOGRAPHICS

• Nearly 77,882 People Within a 3 Mile Radius of the Subject Property• Average Household Incomes of $147,000 Within a 1 Mile Radius of the Subject Property• Unemployment Rate of 3.56% • Strong Housing Demand • Total Consumer Spending of $726.005 Million within a 3 Mile Radius


PROPERTY PHOTOS

No warranty or representation is made as to the accuracy of the foregoing information. Terms of sale, lease, and availability are subject to change or withdrawal without notice.

Pa 3


AERIAL OVERVIEWSubject Property Overhead

N. Eldridge Parkway (35,000 CPD)

Tanner Road (13,000 CPD)

ACCESS

ACCESS

SITE

ACCESS


AERIAL OVERVIEWLooking North from Subject Property

FUTURE RETAIL

Twin Lakes400 Homes Lakes on Eldridge

750 - 800 Homes

Lakes on Eldridge North1,000 Homes

Eldridge Park470+ Homes

FUTURE RETAIL


Pa 3


AERIAL OVERVIEWLooking Northeast from Subject Property

FUTURE RETAIL

FUTURE RETAIL


Pa 3

Twin Lakes400 Homes

Lakes on Eldridge750 - 800 Homes



Industrial-Manufacturing Corridor


AERIAL OVERVIEWLooking East from Subject Property


Pa 3

Twin Lakes400 Homes



NORTHWEST HOUSTONHOUSTON


FUTURE RETAIL

FUTURE RETAIL

Industrial-Manufacturing Corridor


AERIAL OVERVIEWLooking Southeast from Subject Property

FUTURE RETAIL


Pa 3


HOUSTON

Tanner Road (13,000 CPD) N. Eld

ridge

Parkw

ay (3

5,000

CPD)


AERIAL OVERVIEWLooking South from Subject Property

FUTURE RETAILFUTURE RETAIL

Twin Lakes400 Homes



Pa 3

Tanner Road (13,000 CPD)

N. Eldridge Parkway (35,000 CPD)


AERIAL OVERVIEWLooking West from Subject Property

Twin Lakes400 Homes


FUTURE RETAIL

FUTURE RETAIL


Pa 3


TENANT OVERVIEW

JACK IN THE NEWS HIGHLIGHTS

Jack in the BoxFounded in 1951, Jack in the Box Inc. is a restaurant company that operates and franchises Jack in the Box® restaurants and—through a wholly owned subsidiary—Qdoba Mexican Grill® restaurants in a combined 47 states plus the District of Co-lumbia and Canada.

Jack in the Box is among the nation’s leading fast-food hamburger chains, with more than 2,200 quickserverestaurants in 21 states and Guam. As the first major hamburger chain to develop and expand the concept of drive-thru din-ing, Jack in the Box has always emphasized on-the-go convenience, with approximately 85 percent of the half-billion guests

served annually buying food at the drive-thru or for take-out. In addition to drive-thru windows, most restaurants have indoor dining areas and are open 18-24 hours a day.

Jack in the Box pioneered a number of firsts in the quick-serve industry, including menu items that are now staples onmost fast-food menu boards, like the breakfast sandwich and portable salads. Today, Jack in the Box offers a selec-tion of distinctive, innovative products targeted at the fast-food consumer, including hamburgers, specialty sand-wiches, salads and real ice cream shakes. Hamburgers represent the core of the menu, including the signature Jum-bo Jack®, Sourdough Jack®, Ultimate Cheeseburger and the 100% Sirloin Burger. And, because value is important to fast-food customers, the company also offers value-priced products on “Jack’s Value Menu,” including tacos, chicken nuggets, a chicken sandwich and the Breakfast Jack®.

Qdoba Mexican Grill, which was acquired by Jack in the Box Inc. in January 2003, is a leader in fast-casual dining - with more than 600 restaurants in 47 states as well as the District of Columbia and Canada. Qdoba is a Mexican kitch-en where anyone can go to enjoy a fresh, handcrafted meal prepared right in front of them. Each Qdoba restaurant showcases food that celebrates a passion for ingredients, a menu full of innovative flavors, handcrafted preparation and inviting service.

For more on Qdoba, including information on its menu and locations, pleasevisit www.qdoba.com.

JACK IN THE BOX INC. REPORTS FIRST QUARTER FY 2015EARNINGS; UPDATES GUIDANCE FOR FY 2015

SAN DIEGO--(BUSINESS WIRE)--Feb. 17, 2015-- Jack in theBox Inc. (NASDAQ: JACK) today reported earnings fromcontinuing operations of $37.1 million, or $0.94 per dilutedshare, for the first quarter ended January 18, 2015, comparedwith earnings from continuing operations of $33.0 million,or $0.75 per diluted share, for the first quarter of fiscal 2014.

Operating earnings per share, a non-GAAP measure whichthe company defines as diluted earnings per share fromcontinuing operations on a GAAP basis...

• Headquarters: San Diego, CA

• 2014 Revenue: $1.48 Billion

• Areas Served: 21 States and Guam

• Locations: 2,200+

• Employees: 22,000

• Industry: Restaurants - Fast Food

• NASDAQ: JACK

• Website: www.jackintheboxinc.com


AREA OVERVIEWHouston, TXHouston is the most populous city in Texas, and the fourth most populous city in the United States. With a census-estimat-ed 2017 population of 2.3 million people within a land area of 599.6 square miles, Houston is the largest city in the South-ern United States, the seat of Harris County, and fifth-most populated metropolitan area in the United States.

Houston was founded in 1836 on land near the banks of Buffalo Bayou (now known as Allen’s Landing) and incorporated as a city on June 5, 1837. The city was named after former General Sam Houston, who was president of the Republic of Texas and had commanded and won at the Battle of San Jacinto 25 miles east of where the city was established. The burgeoning port and railroad industry, combined with oil discovery in 1901, has induced continual surges in the city’s population. In the mid-twentieth century, Houston became the home of the Texas Medical Center—the world’s largest concentration of healthcare and research institutions—and NASA’s Johnson Space Center, where the Mission Control Center is located.

Houston’s economy has a broad industrial base in energy, manufacturing, aeronautics, and transportation. It is also lead-ing in health care sectors and building oilfield equipment; only New York City is home to more Fortune 500 headquarters. The Port of Houston ranks first in the United States in international waterborne tonnage handled and second in total cargo tonnage handled. The city has a population from various ethnic and religious backgrounds and a large and growing inter-national community. Houston is considered to be the most diverse city in Texas and the United States. It is home to many cultural institutions and exhibits, which attract more than 7 million visitors a year to the Museum District. Houston has an active visual and performing arts scene in the Theater District and offers year-round resident companies in all major performing arts.


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 & 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 & present any offer to or counter-offer from the client; &• Treat all parties to a real estate transaction honestly & fairly.

A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:

AS AGENT FOR OWNER (SELLER/L&LORD): 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 & must inform the owner of any material information about the property or transaction knownby 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 agentmust perform the broker’s minimum duties above & 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 &, 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 & fairly;• May, with the parties’ written consent, appoint a different license holder associated with the broker to each party (owner & buyer) to communicate with, provide opinions & advice to, & 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; &• 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 subagent can assist the buyer but does not represent the buyer & must place the interests of the owner first.

TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU & A BROKER SHOULD BE IN WRITING &CLEARLY ESTABLISH:• The broker’s duties & responsibilities to you, & your obligations under the representation agreement.• Who will pay the broker for services provided to you, when payment will be made & how the paymentwill 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 & retain a copy for your record.

INFORMATION ABOUT BROKERAGE SERVICES

Lee & Associates Los Angeles West, Inc. 01222000 (310) 899-2700Licensed Broker/Broker Firm Name or License No. E-Mail PhonePrimary Assumed Business Name

Aleks Trifunovic 01363109 [email protected] (310) 899-2721Designated Broker of Firm License No. E-Mail Phone

Licensed Supervisor of Sales Agent/Associate License No. E-Mail Phone

Sales Agent/Associate’s Name License No. E-Mail Phone

Buyer/Tenant Initals/Seller/Landlord Initials Date

5656 N. ELDRIDGE PARKWAYHOUSTON, TX 77041

CONTACT US

EXCLUSIVELY REPRESENTED BY:

Paul BrehmeSenior Vice President

[email protected]

AGT DRE 01476686

This property is listed in conjunction with DFW Lee & Associates, LLC - Houston OfficeFor out of state licensing purposes (TX Lic#9003955)

Presented By: FOR SALE€¦ · • Ideal 1031 Exchange Property CORPORATE GUARANTEE - LONG...

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