SAN ANTONIO, TX...San Antonio, Texas 78209 BUILDING GLA 2,972 SF LAND AREA 0.5247 acres (approx.)...

CABO BOB’S STNL INVESTMENT OPPORTUNITY

SAN ANTONIO, TX

CONFIDENTIAL OFFERING MEMORANDUM

CONFIDENTIAL OFFERING MEMORANDUM — CABO BOB’S

CABO BOB’S STNL INVESTMENT OPPORTUNITY CONFIDENTIAL OFFERING MEMORANDUM

847 NE LOOP 410 SAN ANTONIO, TEXAS 78209

presented by

KEVIN CATALANI PARTNER, 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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Information 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


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SSECTION I .. ... ... ... ... ... ... ... ...EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS

LEASE ABSTRACT

PRICING

TENANT PROFILE

SECTION II . ... ... ... ... ... ... ... ...PROPERTY OVERVIEW MAP

OBLIQUES

SECTION III ... ... ... ... ... ... ... ...TRADE AREA OVERVIEW SAN ANTONIO MARKET OVERVIEW

DEMOGRAPHICS

SECTION IV ... ... ... ... ... ... ... ...AGENCY DISCLOSURE


REATA Investment Sales has been exclusively retained to offer for sale Cabo Bob’s, a single-tenant, net lease restaurant in San Antonio, Texas. This newly renovated, free-standing restaurant building is ideally positioned along Loop 410 and Broadway, a premier intersection in north central San Antonio. Cabo Bob’s is an Austin, Texas-based burrito concept with three locations in Austin and will be making their entrance into the San Antonio market with the opening of this location. The offering is an opportunity to acquire a single-tenant net leased asset that has undergone significant capital improvements and is situated on irreplaceable, infill real estate within the thriving San Antonio market.

INVESTMENT HIGHLIGHTS

• Irreplaceable, infill real estate in Central San Antonio• Excellent exposure to one of the busiest segments of Loop 410

with 220,817 cars per day in front of the site

• 300,550 people within 5 miles of the site with average household income of $85,128

• Powerful daytime population (185,376 employees within 5 miles) creates significant lunch traffic

• Free-standing restaurant with drive-thru and substantial pylon signage• Flagship San Antonio location for popular Austin-based

restaurant concept

• Net lease structure creates minimal landlord responsibilities• Complete building renovation in 2019, including new roof and parking lot

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PRICING

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Tenant CB201, LLC

Tenant Trade Name Cabo Bob’s

Original Lease Term 5 Years

Lease Commencement March 15, 2019

Lease Expiration March 14, 2024

Rent Increases 10% Every 5 Years

Renewal Options Two, 5-Year Options with 10% Rent Increases

Lease Type NNN

Reimbursement Structure CAM: Tenant self-maintains Taxes & Insurance: Monthly reimbursement to Landlord

Roof & Structure Landlord Responsibility

Guarantor Personal Guaranty

Lease Years Annual Base Rent Monthly Rent Cap Rate*

1 — 5 $95,104 $7,925 7.00%

Extension Terms:

6 — 10 $104,614 $8,718 7.93%

11 — 15 $115,076 $9,590 8.72%

RENT SUMMARY

LEASE SUMMARY

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LEASE ABSTRACT

TENANT TRADE NAME Cabo Bob’s

LOCATION NEQ Loop 410 & Broadway St. 847 NE Loop 410 San Antonio, Texas 78209

BUILDING GLA 2,972 SF

LAND AREA 0.5247 acres (approx.)

PARKING 28 Parking Spaces (9.42/1,000 SF)

YEAR BUILT/RENOVATED 1991/2019

Offering Price $1,320,000

Current NOI* $92,404

Cap Rate 7.00%

*Parking Agreement: There is a parking agreement in place between Landlord and the owner of the neighboring property (8522 Broadway) to allow for access to additional parking at a cost of $2,700/year. Tenant is not obligated to reimburse for this cost in years 1-5, but will be responsible beginning in year 6. Current NOI and corresponding cap rates are reflective of these obligations.


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ABOUT CABO BOB’S

Cabo Bob’s started in 2008 and now has 4 locations. It’s three Austin locations each maintain an impressive four-and-a-half stars on Yelp with expansion plans in San Antonio and a Houston location set to open Q4 2019.

The restaurant’s name references an imaginary figure who lives on the coast and spends his days surfing. Cabo Bob’s serves tacos, burritos, bowls, and salads topped with a diner’s choice of meats, veggies, rice, beans, and more. What sets Cabo Bob’s apart is that all of its tortillas are pressed fresh to order and cooked on a rotating comal right in front of the customer. In addition, the restaurant serves hormone-free beef, chicken, and lake-grown tilapia.

COMPANY PROFILE

Company Type: PrivateFounded: 2008Number of Locations: 4Headquarters: Austin, TXWebsite: cabobobs.com


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4Representative Photo (Subject Property Under Construction)


LINCOLN HEIGHTS

ALAMO QUARRY MARKET

DOWNTOWN SAN ANTONIO

ALAMO HEIGHTS

EST. POPULATION: 8,686AVG. HH INCOME: $208,246

QUARRY VILLAGE

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INCARNET WORDUNIVERSITY

ALAMO HEIGHTSHIGH SCHOOL

CHRISTUS SANTAROSA HOSPITALALAMO HEIGHTS

QUARRYGOLF COURSE

TRINITY UNIVERSITY

220,817

CPD

151,180 CPD

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BROADWAY AVE

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151,180 CPD

WETMORE RD

BROADWAY AVE

RESTAURANT

PARK NORTH

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220,817 CPD

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SAN ANTONIO MARKET OVERVIEW

San Antonio is the nation’s 7th largest city and the 24th largest metropolitan service area (MSA) in the United States. The San Anto-nio-New Braunsfels MSA (referred to as Great-er San Antonio) encompasses eight counties and is situated in South-Central Texas along the I-35 corridor with a population of nearly 2.3 million people; 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 proximity to Mex-ico. Due to its central location and positioning along Interstate 35, more than half of the to-tal goods flowing between the U.S. and Mex-ico travel through San Antonio before reach-ing their final destination. San Antonio is also home to a number of national landmarks and famous attractions, making it Texas’ most vis-ited city with about 20 million visitors annually.

San Antonio benefits greatly from the city’s close proximity to Mexico and the cost advan-tages of living in this unique city. The economy of San Antonio is a healthy mix of financial ser-vices, government services, manufacturing, education and health care, biosciences, com-munications, oil & gas and tourism industries. San Antonio is home to five Fortune 500 com-panies including Valero Energy, Tesoro, USAA, NuStar Energy and Clear Channel Communica-tions. In addition, other major companies call San Antonio home for their corporate head-quarters, including H-E-B and Rackspace.

According to the Council for Community and Economic Research, the cost of living is near-ly 12 percent below the U.S. average, allowing residents and companies alike to enjoy afford-able living in a cultural and business-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 California 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). The Eagle Ford Shale play that is currently taking place in South Tex-as has made significant contributions to the city’s recent success. The Eagle Ford Shale (EFS) is quite possibly the largest single eco-nomic development in the history of the state of Texas and ranks as the largest oil & gas development in the world based on capital invested. The EFS is a gas and oil producing shale rock formation in south Texas that runs from the US-Mexico border north of Lare-


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do in a narrow band extending northeast for several hundred miles to just north of Hous-ton. The EFS takes its name from the town of Eagle Ford, Texas where the shale outcrops at the surface in clay form. Approximately $30 billion was spent developing the play in 2013 and had more than a $60 billion dollar impact on the South Texas economy in 2012; over 116,000 Eagle Ford jobs were supported

in the 20 county area impacted by the play. Since the beginning of 2010 over 7% of the state’s employment gains are attributed to the EFS. It is currently the most active shale play in the world with over 200 rigs running. From record drilling levels to wells producing over 4,000 barrels per day of oil, the play is redefining South Texas as an oil industry hot-bed and bringing new wealth to the region.

CORPORATE HEADQUARTERS IN SAN ANTONIO

COMPANY BUSINESS EMPLOYED IN SAN ANTONIO

H-E-B Super Market Chain 20,000USAA Financial Services and Insurance 17,000Bill Miller Bar-B-Q Fast Food Chain 4,190Cullen / Frost Bankers Financial Services 3,982Valero Energy Oil Refinery & Gasoline Mktg. 3,777Rackspace IT Managed Hosting Solutions 3,300Southwest Research Institute Applied Research 3,046Toyota Motor Manufacturing Auto Manufacturing 2,900Clear Channel Communications, Inc. TV & Radio Stations, Outdoor Ads 2,800Kinetic Concepts, Inc. Medical Supplies 2,000Harland Clarke Check Printing 1,500Tesoro Oil Refiner & Petroleum Products 800NuStar Energy Energy 550

Source: The San Antonio Business Journal and by contact with company representatives. Updated August 2013.

MAJOR REGIONAL EMPLOYERS IN SAN ANTONIO

COMPANY BUSINESS EMPLOYED IN SAN ANTONIO

Lackland Air Force Base Military 37,097Fort Sam Houston Military 32,000H-E-B Super Market Chain 20,000USAA Financial Services and Insurance 17,000Northside Independent School District School District 12,751City of San Antonio City Government 11,731Randolph Air Force Base Military 11,068North East Independent School District School District 10,522Methodist Healthcare System Health Care Services 8,000San Antonio Independent School District School District 7,374

Source: The 2013 Book of Lists, The San Antonio Business Journal

FORTUNE 500 COMPANIES HEADQUARTERED IN SAN ANTONIO

COMPANY RANK

Valero Energy 9 Tesoro 95 USAA 139 NuStar Energy 389 Clear Channel Communications, Inc. 407

Source: Fortune Magazine


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FULL PROFILE2000-2010 Census, 2019 Estimates with 2024 ProjectionsCalculated using Weighted Block Centroid from Block Groups

Lat/Lon: 29.5171/-98.4621RF1

Cabo Bob's1 mi radius 3 mi radius 5 mi radius

847 NE Interstate 410 Loop, San Antonio, TX 78209

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2019 Estimated Population 0 T 9,921 90,873 300,9452024 Projected Population 0 T 10,630 97,795 324,3062010 Census Population 0 T 8,304 79,567 269,9792000 Census Population 0 T 8,531 80,676 263,927Projected Annual Growth 2019 to 2024 - 1.4% 1.5% 1.6%Historical Annual Growth 2000 to 2019 - 0.9% 0.7% 0.7%

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2019 Estimated Households 0 T 4,014 38,618 117,5132024 Projected Households 0 T 4,177 40,327 122,9532010 Census Households 0 T 3,523 35,501 110,4232000 Census Households 0 T 3,622 36,129 108,318Projected Annual Growth 2019 to 2024 - 0.8% 0.9% 0.9%Historical Annual Growth 2000 to 2019 - 0.6% 0.4% 0.4%

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2019 Est. Population Under 10 Years - 11.9% 12.4% 12.6%2019 Est. Population 10 to 19 Years - 12.7% 11.6% 12.7%2019 Est. Population 20 to 29 Years - 12.9% 14.7% 16.0%2019 Est. Population 30 to 44 Years - 20.1% 20.5% 20.7%2019 Est. Population 45 to 59 Years - 18.4% 18.8% 18.1%2019 Est. Population 60 to 74 Years - 14.7% 13.8% 13.4%2019 Est. Population 75 Years or Over - 9.3% 8.2% 6.6%2019 Est. Median Age 38.5 37.7 35.9

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2019 Est. Male Population - 48.4% 48.6% 49.2%2019 Est. Female Population - 51.6% 51.4% 50.8%

2019 Est. Never Married - 32.4% 36.0% 38.3%2019 Est. Now Married - 36.9% 36.9% 37.7%2019 Est. Separated or Divorced - 21.7% 20.4% 18.5%2019 Est. Widowed - 9.0% 6.8% 5.6%

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2019 Est. HH Income $200,000 or More - 7.1% 9.2% 6.4%2019 Est. HH Income $150,000 to $199,999 - 6.8% 6.6% 5.6%2019 Est. HH Income $100,000 to $149,999 - 9.7% 11.8% 11.9%2019 Est. HH Income $75,000 to $99,999 - 11.0% 12.0% 11.7%2019 Est. HH Income $50,000 to $74,999 - 18.3% 17.7% 19.2%2019 Est. HH Income $35,000 to $49,999 - 13.8% 13.4% 14.3%2019 Est. HH Income $25,000 to $34,999 - 7.7% 8.3% 9.8%2019 Est. HH Income $15,000 to $24,999 - 10.9% 9.8% 10.3%2019 Est. HH Income Under $15,000 - 14.8% 11.3% 10.9%2019 Est. Average Household Income $0 T $77,415 $93,397 $82,1182019 Est. Median Household Income $0 T $56,814 $68,233 $62,2212019 Est. Per Capita Income $0 T $31,438 $39,787 $32,431

2019 Est. Total Businesses 0 T 1,775 8,489 18,5852019 Est. Total Employees 0 T 17,474 91,082 185,376

©2019, Sites USA, Chandler, Arizona, 480-491-1112 page 1 of 3 Demographic Source: Applied Geographic Solutions 4/2019, TIGER Geography

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CABO BOB’S DEMOGRAPHICS


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AGENCY DISCLOSUREAGENCY DISCLOSURE

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

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.

SAN ANTONIO, TX...San Antonio, Texas 78209 BUILDING GLA 2,972 SF LAND AREA 0.5247 acres (approx.)...

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Transcript of SAN ANTONIO, TX...San Antonio, Texas 78209 BUILDING GLA 2,972 SF LAND AREA 0.5247 acres (approx.)...