West Hardy Road Business Park package · 6/24/2015 · Parcel Size 4.8 Acres Parking 2.50/1,000...
Transcript of West Hardy Road Business Park package · 6/24/2015 · Parcel Size 4.8 Acres Parking 2.50/1,000...
OFFERING MEMORANDUM
West Hardy Business ParkHOUSTON, TX
CONFIDENTIALITY AND DISCLAIMER
The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.
West Hardy Business ParkHOUSTON, TX
NON-ENDORSEMENT NOTICE
Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOURMARCUS & MILLICHAP AGENT FOR MORE DETAILS.
Section 1 PRICING AND FINANCIAL ANALYSIS
Section 2 PROPERTY DESCRIPTION
Section 3 RECENT SALES
Section 4 LEASE COMPARABLES
Section 5 DEMOGRAPHIC ANALYSIS
TABLE OF CONTENTS
West Hardy Business Park
West Hardy Business ParkHOUSTON, TX
PRICING AND FINANCIAL ANALYSIS
1
PRICING AND FINANCIAL ANALYSIS
Down Payment 25% $557,312
Gross Square Feet 69,002
Price/Gross SF $32.31
Rentable Square Feet 69,002
Price/Rentable SF $32.31
Year Built 1980
Parcel Size 4.8 Acres
Parking 2.50/1,000 Square Feet
VITAL DATA
CAP Rate - Current 8.64%
Net Operating Income - Current $192,577
Net Cash Flow After Debt Service - Current 12.65% / $70,521
Total Return - Current 18.02% / $100,450
West Hardy Business ParkHOUSTON, TX
Major Employers
CompanyLocal
Employees
Krones Inc. 7,300
ABS Americas 2,056
Aggreko International Projects 2,000
Vallen Safety Supply Company 2,000
Ricoh USA Inc. 1,532
US Post Office 1,504
Lone Star College - North Harris 1,120
Reed Academy For Engineering 1,100
Hydril USA Manufacturing LLC 1,000
Baker Hughes Inc. 832
Exxon Mobil Corporation 809
Air Route Traffic Control Center 800
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
Demographics
1-Mile 3-Miles 5-Miles
2014 Total 16,015 73,786 219,670
2019 Total 16,875 78,987 237,957
2014 Total 6,000 23,202 65,532
2019 Total 6,330 24,717 70,722
Median HH Income $27,948 $31,441 $37,167
Per Capita Income $13,461 $13,058 $14,633
Average (Mean) HH $35,930 $41,517 $48,987
OFFERING SUMMARY
15955 West Hardy Road
Houston, TX 77060
Price $2,229,248
Down Payment 25% / $557,312
Gross Square Feet 69,002
Price/Gross SF $32.31
Rentable Square Feet 69,002
Price/Rentable SF $32.31
CAP Rate - Current 8.64%
Year Built 1980
Parcel Size 4.8 Acres
Type of Ownership Fee Simple
FIRST TRUST DEED
Loan Amount $1,671,936
Loan Type Proposed New
Interest Rate 4.6%
Amortization 25 Years
Program Conventional
Loan to Value 75%
Annualized Operating Data
Income CurrentBase Rent
Occupied Space 352,656
Available Space at Market Rents $30,582
Gross Potential Rent $383,238
Gross Potential Income $383,238
Vacancy/Collection Allowance 7% / $26,827
Effective Gross Income $356,411
Total Expenses $163,834
Net Operating Income $192,577
Reserves $7,000
Net Cash Flow Before Debt Service $185,577
Debt Service $115,056
Debt Coverage Ratio 1.67
Net Cash Flow After Debt Service 12.65% / $70,521
Principal Reduction $29,929
Total Return 18.02% / $100,450
2
Location
PRICING AND FINANCIAL ANALYSIS
Financing
West Hardy Business ParkHOUSTON, TX
Expenses
Real Estate Taxes $49,894
Association Fee $2,893
Insurance $52,833
Utilities $21,450
Repairs & Maintenance $22,125
Management Fee $14,639
TOTAL EXPENSES $163,834
EXPENSES/SF $2.37
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
Loan information is time sensitive and subject tochange. Contact your local Marcus & MillichapCapital Corporation representative.
FINANCIAL OVERVIEW
3
PRICING AND FINANCIAL ANALYSIS
West Hardy Business ParkHOUSTON, TX
Existing Financing
Loan Type Free and Clear
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
Proposed Financing
FIRST TRUST DEED
Loan Amount $1,671,936
Loan Type Proposed New
Interest Rate 4.6%
Amortization 25 Years
Program Conventional
Loan to Value 75%
Debt Coverage Ratio 1.67
Debt Coverage Ratio (Combined)
FINANCING
4
PRICING AND FINANCIAL ANALYSIS
West Hardy Business ParkHOUSTON, TX
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
The following are guidelines provided by the Seller which shall be included in the Buyer's Letter of Intent or
Purchase and Sale Agreement.
1. Initial Deposit - The Initial Deposit shall be $20,000.00.
2. Due Diligence Period - Buyer shall have (30) days upon the "Effective Date" to conduct his Due Diligence.
3. Extension - Seller shall grant a thirty (30) day extension which will require an additional deposit equal to
the Initial Deposit.
4. Financing Contingency - Buyer shall have up to thirty (30) days to secure financing.
5. Proof of Funds - Buyer shall provide Seller with a Proof of Funds Letter to be included with his Letter of
Intent or Purchase and Sale Agreement.
6. Escrow - Seller's choice
PURCHASE GUIDELINES
5
PRICING AND FINANCIAL ANALYSIS
West Hardy Business ParkHOUSTON, TX
Comments
Please note that Suite 308 is scheduled to become vacant 4/30/2015.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
Suite Tenant SF Lease
Commence
Lease
Expire
Annual
Rent
Rent/
SF
Lease Type
100 Rhema Word Praise Worship 4,865 3/1/2015 2/28/2018 $24,000 $4.93 G
110 Blair Design & Construction 4,998 5/1/2015 4/30/2018 $30,000 $6.00 G
122 Vision of Faith 10,242 3/15/2015 3/31/2018 $42,000 $4.10 G
200 Camino de Salvacion 2,062 5/15/2013 5/31/2016 $13,608 $6.60 G
202 Life Church 3,500 1/15/2012 1/31/2016 $21,840 $6.24 G
206 Rhema Life Church 2,407 9/1/2012 9/30/2015 $14,436 $6.00 G
208 Love & Truth Worship 1,791 7/1/2010 7/31/2015 $12,888 $7.20 G
210 BGN Customs 2,314 1/15/2013 1/31/2015 $14,400 $6.22 G
218-B B&B Glass & Mirror 3,041 1/1/2015 2/28/2017 $17,400 $5.72 G
218-A B&B Glass & Mirror 3,200 8/15/2011 2/28/2017 $15,600 $4.88 G
222 BOP Technologies 2,507 6/1/2015 6/30/2015 $15,644 $6.24
300 Foundation Church 6,698 12/1/2005 7/31/2016 $41,400 $6.18 G
301 Soto Glass 1,730 10/1/2014 9/30/2016 $13,560 $7.84 G
308 VACANT 5,097 $0.00
310 Evans Coach & Limo 3,108 12/1/2005 5/31/2015 $18,648 $6.00 G
312 Filberto Soto 3,360 5/1/2014 4/30/2016 $22,800 $6.79 G
314 Renteria Manufacturing 1,757 11/1/2014 10/31/2016 $966 $0.55 G
320 Rhema World of Life 6,325 10/1/2010 9/30/2015 $33,466 $5.29 G
TOTAL AVAILABLE 5,097
TOTAL OCCUPIED 63,905 $352,656
TOTAL 69,002 $352,656
RENT ROLL
6
PRICING AND FINANCIAL ANALYSIS
West Hardy Business ParkHOUSTON, TX
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
RENT INCREASES
Rhema Word Praise Worship - Current Annual Rent $24,000.00
3/1/2016 - $26,400.00
3/1/2017 - $29,184.00
Vision of Faith - Current Annual Rent $42,000.00
3/1/2016 - $44,100.00
3/1/2017 - $46,296.00
Evans Funeral Coach & Limo - Current Annual Rent $18,648.00
6/1/2016 - $19,392.00
5/1/2015 - $20,136.00
BOP Technologies - Current Annual Rent $15,644.00
7/1/2017 - $16,546.00
7
PRICING AND FINANCIAL ANALYSIS
For The Year Beginning Year 1
Apr 2015
Year 2
Apr 2016
Year 3
Apr 2017
Year 4
Apr 2018
Year 5
Apr 2019
Year 6
Apr 2020
Year 7
Apr 2021
Year 8
Apr 2022
Year 9
Apr 2023
Year 10
Apr 2024
Life Church
Rhema Life
Church
Love & Truth
Worship
BOP
Technologies
Evans Coach
& Limo
Rhema World
of Life
Camino de
Salvacion
B&B Glass
& Mirror
B&B Glass
& Mirror
Foundation
Church
Soto Glass
Filberto
Soto
Renteria
Manufacturing
Rhema Word
Praise
Worship
Vision of
Faith
Blair Design
&
Construction
Total Number of Tenants 6 7 2 1
Total Square Feet 19,638 21,848 15,107 4,998
Total Percentage 28.5% 31.7% 21.9% 7.2%
Cumulative Percentage 28.5% 60.1% 82.0% 89.3%
West Hardy Business ParkHOUSTON, TX
Percentage of SF Expiring Number of Tenants Expiring Cumulative % of SF Expiring
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
To
tal P
roje
ct S
qu
are
Fo
ota
ge
0
1
2
3
4
5
6
7
Nu
mb
er
of T
en
an
tsApr 2015
28%Apr 2016
32%Apr 2017
22%Apr 2018
7%Apr 2019
0%Apr 2020
0%Apr 2021
0%Apr 2022
0%Apr 2023
0%Apr 2024
0%
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
Any projections, opinions, assumptions or estimates used here within are for example purposes only and do not represent the current or future performance of the property.
LEASE EXPIRATION SUMMARY
8
PRICING AND FINANCIAL ANALYSIS
West Hardy Business ParkHOUSTON, TX
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
Current Per SF
Real Estate Taxes $49,894 $0.72
Association Fee $2,893 $0.04
Insurance $52,833 $0.77
Utilities $21,450 $0.31
Repairs & Maintenance $22,125 $0.32
Management Fee $14,639 $0.21
TOTAL EXPENSES $163,834 $2.37
EXPENSES
9
PRICING AND FINANCIAL ANALYSIS
West Hardy Business ParkHOUSTON, TX
Comments
Please note that Suite 308 is scheduled to become vacant 4/30/2015.
Gross Square Feet 69,002
Rentable Square Feet 69,002
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
Current Per SF
BASE RENT
Occupied Space 352,656 $5.30
Available Space at Market Rents (2,507 SF) $30,582 $12.20
GROSS POTENTIAL RENT $383,238 $5.55
GROSS POTENTIAL INCOME $383,238 $5.55
Vacancy/Collection Allowance (% of GPR) 7% / $26,827 $0.39
EFFECTIVE GROSS INCOME $356,411 $5.17
Total Expenses $163,834 $2.37
NET OPERATING INCOME $192,577 $2.79
Reserves $7,000 $0.10
NET CASH FLOW BEFORE DEBT SERVICE $185,577 $2.69
INCOME & EXPENSES
Marcus & Millichap is pleased to offer the West Hardy Road Business Park consisting of three multi-tenant industrial warehouse buildings with a total of 69,002 square feet of rentable building area.
Located just minutes away from the Hardy Toll Road, Beltway 8, Interstate 45, Interstate 59, and the George Bush Intercontinental Airport, the West Hardy Road Business Park is conveniently located in the center of one of Houston's busiest industrial distribution and manufacturing submarkets.
The West Hardy Road Business Park is being offered at $2,229,248.00 with an 8.25 percent CAP Rate and is an appealing investment for those who are looking for an asset priced well below replacement cost.
Investment Highlights
■ 69,002 Square Feet of Rentable Building Area
■ 96 Percent Occupied
■ Immediate Access to Four (4) Major Freeways
■ 18 Units From 1,700 Square Feet to 10,000 Square Feet
■ Situated on a 4.8 Acre Parcel
■ High Demographic Area of Houston, Texas
■ Tilt-Wall Construction Built in 1980
■ Offered at $2,229,248.00 with an 8.25 Percent CAP Rate
10
PROPERTY DESCRIPTION
West Hardy Business ParkHOUSTON, TX
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
INVESTMENT OVERVIEW
West Hardy Business ParkHOUSTON, TX
PROPERTY DESCRIPTION
12
PROPERTY DESCRIPTION
West Hardy Business ParkHOUSTON, TX
The Offering
Property West Hardy Business Park
Property Address 15955 West Hardy Road
Houston, TX 77060
Property Type Industrial Multi-Tenant
Assessor's Parcel Number 1089450000005
Site Description
Parcel Size 4.8 Acres
Type of Ownership Fee Simple
Rentable Square Feet 69,002
Zoning Commercial
Parking 2.50/1,000 Square Feet
Parking Ratio 2.50/1,000 Square Feet
Landscaping Yes
Street Frontage Yes
Cross Street West Hardy Road
Construction
Year Built 1980
Construction Type Tilt-Wall
Number of Floors One
Mezzanine No
Number of Units 18
Unit Sizes 1,700 Square Feet - 10,000 Square Feet
Divisibility Yes
Office Build-Out 5%Clear Height 13'-16'
Power 3 PExterior Walls Concrete
Roof Metal
Foundation Concrete
Loading 4 Loading Docks - 11 Drive-In Doors
Parking Surface Concrete
Mechanical
Elevator No
Fire Protection No
HVAC Yes
Utilities All
Plumbing Yes
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
PROPERTY SUMMARY
Construction
Features
■ "Class B" 1980 Masonry Construction
■ 69,002 Square Feet of Rentable Building Area
■ Immediate Access to Four (4) Major Freeways
■ Stabilized Asset - 96 Percent Occupied
■ 18 Units From 1,700 Square Feet to 10,000 SquareFeet
■ High Demographic Area of Houston, Texas
13
PROPERTY DESCRIPTION
West Hardy Business ParkHOUSTON, TX
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
PROPERTY FEATURES
14
PROPERTY DESCRIPTION
West Hardy Business ParkHOUSTON, TX
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
PROPERTY PHOTOS
Local Map Regional Map
15
PROPERTY DESCRIPTION
West Hardy Business ParkHOUSTON, TX
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
AREA MAPS
16
PROPERTY DESCRIPTION
West Hardy Business ParkHOUSTON, TX
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
SITE PLAN
17
PROPERTY DESCRIPTION
West Hardy Business ParkHOUSTON, TX
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
The subject property is located within a 100-year floodplain. A one percent (100-year) floodplain is an area that has a minimum of a one
percent (1 in 100) chance of flooding in any given year from a bayou, creek, or other waterway overflowing. Structures in a one percent (100-
year) floodplain have a minimum of a 26 percent chance of flooding during a 30-year period of time, which is the duration of many mortgages.
The risk for flooding increases the closer a structure is to a bayou or a creek, assuming the structure is not elevated. A floodway is an area
within a one percent (100-year) floodplain that is closest to a bayou or creek where water flows most quickly and is most likely the deepest. The
one percent (100-year) floodplain and floodway on the Federal Emergency Management Agency’s Flood Insurance Rate maps are regulatory
areas in which the city and county regulate land development.
AERIAL PHOTO
West Hardy Business ParkHOUSTON, TX
RECENT SALES
1)
2)
3)
4)
5)
6)
West Hardy Business Park
Wallisville Business Park
West Sam Houston Parkway
Meadowglen Business Park
Wallisville Business Park
Oak Hollow Business Park
Trade Center
19
RECENT SALES
West Hardy Business ParkHOUSTON, TX
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
RECENT SALES MAP
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Subject WallisvilleBusiness
Park
MeadowglenBusiness
Park
WallisvilleBusiness
Park
OakHollow
BusinessPark
TradeCenter
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Subject WallisvilleBusiness
Park
MeadowglenBusiness
Park
WallisvilleBusiness
Park
TradeCenter
Average Price Per Rentable SF
Average Cap Rate
20
RECENT SALES
West Hardy Business ParkHOUSTON, TX
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
CAP RATE AND PRICE PER RENTABLE SF
Average Price Per Gross SF
21
RECENT SALES
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10.00
20.00
30.00
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50.00
60.00
70.00
Subject WallisvilleBusiness
Park
MeadowglenBusiness
Park
WallisvilleBusiness
Park
OakHollow
BusinessPark
TradeCenter
West Hardy Business ParkHOUSTON, TX
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
PRICE PER GROSS SQUARE FOOT
1
2
West Hardy Business Park
15955 West Hardy Road
Houston, TX 77060
Wallisville Business Park
9364 Wallisville Road
Houston, TX 77013
West Sam Houston Parkway
9303 West Sam Houston Parkway
Houston, TX 77099
Comments
This sale also includes another building in the same business park.
Comments
589 days on market
Gross SF: 69,002 Sales Price: $2,229,248
Year Built: 1980 Percent Down: 25%
Occupancy: 96% CAP Rate: 8.64%
Office Build-Out: 5% Price/Gross SF: $32.31
Close of Escrow: 4/24/2013 Sales Price: $2,630,659
Rentable SF: 47,203 Percent Down: N/A
Year Built: 1980 CAP Rate: 8.40%
Occupancy: 100% Price/Rentable SF: $55.73
Office Build-Out N/A
Close of Escrow: 6/19/2013 Sales Price: N/A
Rentable SF: 83,312 Percent Down: N/A
Year Built: 1981 CAP Rate: N/A
Occupancy: 19% Price/Rentable SF: N/A
Office Build-Out: N/A
1
22
RECENT SALES
West Hardy Business ParkHOUSTON, TX
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
RECENT SALES
4
5
Meadowglen Business Park
11391 Meadowglen Lane
Houston, TX 77082
Wallisville Business Park
9360 Wallisville Road
Houston, TX 77013
Oak Hollow Business Park
9207 Emmott Road
Houston, TX 77040
Comments
This investment was one of two buildings sold in this business park.
Comments
This was an REO sale.
3
Comments
This investment included two buildings.
Close of Escrow: 8/11/2014 Sales Price: $4,940,000
Rentable SF: 71,350 Percent Down: N/A
Year Built: 1984 CAP Rate: 8.50%
Occupancy: 94% Price/Rentable SF: $69.24
Office Build-Out: 55%
Close of Escrow: 11/20/2014 Sales Price: $1,469,341
Rentable SF: 26,365 Percent Down: N/A
Year Built: 1981 CAP Rate: 8.40%
Occupancy: 100% Price/Rentable SF: $55.73
Office Build-Out: N/A
23
RECENT SALES
West Hardy Business ParkHOUSTON, TX
Close of Escrow: 10/24/2014 Sales Price: $1,620,000
Rentable SF: 38,836 Percent Down: N/A
Year Built: 1984 CAP Rate: N/A
Occupancy: 46% Price/Rentable SF: $43.98
Office Build-Out: N/A
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
RECENT SALES
Trade Center
18121 Ammi Trail
Houston, TX 77060
6
Close of Escrow: 6/19/2013 Sales Price: $988,000
Rentable SF: 23,607 Percent Down: N/A
Year Built: 1982 CAP Rate: 9.00%
Occupancy: 61% Price/Rentable SF: $41.85
Office Build-Out: N/A
24
RECENT SALES
West Hardy Business ParkHOUSTON, TX
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
RECENT SALES
West Hardy Business ParkHOUSTON, TX
LEASE COMPARABLES
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West Hardy Business Park
Greenbriar 1 Plaza 2
Greenbriar 8 Plaza
Greenbriar Business Park
Greenbriar North Business Center
Greenbriar North Service Center
Hedgecroft Square
Central Park North
Briar Center
West Hardy Business Center
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LEASE COMPARABLES
West Hardy Business ParkHOUSTON, TX
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
LEASE COMPARABLES MAP
AVERAGE OCCUPANCY
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Subject Greenbriar1
Plaza2
Greenbriar8
Plaza
GreenbriarBusiness
Park
GreenbriarNorth
BusinessCenter
GreenbriarNorth
ServiceCenter
HedgecroftSquare
CentralParkNorth
BriarCenter
WestHardy
BusinessCenter
0.00
1.00
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Subject Greenbriar1
Plaza2
Greenbriar8
Plaza
GreenbriarBusiness
Park
GreenbriarNorth
BusinessCenter
GreenbriarNorth
ServiceCenter
HedgecroftSquare
CentralParkNorth
BriarCenter
WestHardy
BusinessCenter
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AVERAGE RENT/SF
LEASE COMPARABLES
West Hardy Business ParkHOUSTON, TX
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
OCCUPANCY AND AVERAGE RENT PER SF
2
West Hardy Business Park
15955 West Hardy Road
Houston, TX 77060
Greenbriar 1 Plaza 2
701-716 Bradfield Road
Houston, TX 77060
Greenbriar 8 Plaza
15534 West Hardy Road
Houston, TX 77060
1
Date Surveyed: 4/9/2015
Gross Square Feet: 69,002
Occupancy: 96%
Year Built: 1980
Date Surveyed: 4/10/2015
Rentable Square Feet: 32,952
Occupancy: 91%
Year Built: 1980
Date Surveyed: 4/9/2015
Rentable Square Feet: 85,516
Occupancy: 76%
Year Built: 1980
Rent/SF Available SF Lease Type Office Build-Out
$5.10 1,730 MG 5%
Rent/SF Available SF Lease Type Office Build-Out
$6.72 2,945 NNN N/A
28
Rent/SF Available SF Lease Type Office Build-Out
$4.08 20,743 NNN N/A
LEASE COMPARABLES
West Hardy Business ParkHOUSTON, TX
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
LEASE COMPARABLES
5
Greenbriar Business Park
15711 West Hardy Road
Houston, TX 77060
Greenbriar North Business Center
15800 West Hardy Road
Houston, TX 77060
Greenbriar North Service Center
16507 Hedgecroft Drive
Houston, TX 77060
3
4
Date Surveyed: 4/10/2015
Rentable Square Feet: 19,000
Occupancy: 83%
Year Built: 1980
Date Surveyed: 4/10/2015
Rentable Square Feet: 26,500
Occupancy: 91%
Year Built: 1980
Date Surveyed: 4/8/2015
Rentable Square Feet: 36,588
Occupancy: 94%
Year Built: 1976
Rent/SF Available SF Lease Type Office Build-Out
$6.00 3,260 MG N/A
29
Rent/SF Available SF Lease Type Office Build-Out
$3.48 2,384 NNN N/A
LEASE COMPARABLES
West Hardy Business ParkHOUSTON, TX
Rent/SF Available SF Lease Type Office Build-Out
$8.40 4,178 FS N/A
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
LEASE COMPARABLES
8
Hedgecroft Square
16770 Hedgecroft Drive
Houston, TX 77060
Central Park North
600 Kenrick Drive
Houston, TX 77060
Briar Center
15603 West Hardy Road
Houston, TX 77060
6
7
Date Surveyed: 4/8/2015
Rentable Square Feet: 14,330
Occupancy: 74%
Year Built: 1978
Date Surveyed: 4/8/2015
Rentable Square Feet: 20,280
Occupancy: 10%
Year Built: 1980
Date Surveyed: 4/13/2015
Rentable Square Feet: 65,876
Occupancy: 93%
Year Built: 1982
Rent/SF Available SF Lease Type Office Build-Out
$6.72 3,720 IG N/A
Rent/SF Available SF Lease Type Office Build-Out
$3.84 18,282 NNN N/A
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LEASE COMPARABLES
Rent/SF Available SF Lease Type Office Build-Out
$8.16 4,830 NNN N/A
West Hardy Business ParkHOUSTON, TX
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
LEASE COMPARABLES
WEST HARDY BUSINESS CENTER
15660 West Hardy Road
Houston, TX 77060
9
Date Surveyed: 4/13/2015
Rentable Square Feet: 31,845
Occupancy: 91%
Year Built: 1979
Rent/SF Available SF Lease Type Office Build-Out
$6.60 2,799 MG N/A
31
LEASE COMPARABLES
West Hardy Business ParkHOUSTON, TX
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
LEASE COMPARABLES
West Hardy Business ParkHOUSTON, TX
DEMOGRAPHIC ANALYSIS
1 Mile 3 Miles 5 Miles
2000 Population 12,606 53,438 156,799
2010 Population 15,177 68,809 205,952
2014 Population 16,015 73,786 219,670
2019 Population 16,875 78,987 237,957
2000 Households 5,010 17,938 50,033
2010 Households 5,661 21,569 61,106
2014 Households 6,000 23,202 65,532
2019 Households 6,330 24,717 70,722
2014 Average Household Size 2.70 3.17 3.32
2014 Daytime Population 20,922 63,255 111,169
2000 Owner Occupied Housing Units 7.71% 22.57% 42.60%
2000 Renter Occupied Housing Units 65.07% 62.30% 48.15%
2000 Vacant 27.21% 15.12% 9.25%
2014 Owner Occupied Housing Units 9.72% 30.46% 46.92%
2014 Renter Occupied Housing Units 90.28% 69.54% 53.08%
2014 Vacant 16.26% 12.41% 10.09%
2019 Owner Occupied Housing Units 9.79% 31.48% 47.43%
2019 Renter Occupied Housing Units 90.21% 68.52% 52.57%
2019 Vacant 15.22% 12.16% 10.24%
$ 0 - $14,999 19.8% 19.1% 15.6%
$ 15,000 - $24,999 23.5% 19.1% 15.9%
$ 25,000 - $34,999 22.7% 18.7% 15.7%
$ 35,000 - $49,999 17.3% 17.3% 17.3%
$ 50,000 - $74,999 9.9% 14.1% 17.9%
$ 75,000 - $99,999 3.6% 6.2% 9.2%
$100,000 - $124,999 1.5% 3.1% 4.5%
$125,000 - $149,999 0.8% 1.2% 1.8%
$150,000 - $199,999 0.2% 0.6% 1.2%
$200,000 - $249,999 0.2% 0.3% 0.3%
$250,000 + 0.5% 0.5% 0.6%
2014 Median Household Income $27,948 $31,441 $37,167
2014 Per Capita Income $13,461 $13,058 $14,633
2014 Average Household Income $35,930 $41,517 $48,987
Demographic data © 2010 by Experian/Applied Geographic Solutions.
33
DEMOGRAPHIC ANALYSIS
West Hardy Business ParkHOUSTON, TX
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
Demographic data © 2012 by Experian.
DEMOGRAPHIC REPORT
Geography: 5 miles
Population
In 2014, the population in your selected geography is 219,670. The population has changed by 40.09% since 2000. It is estimated
that the population in your area will be 237,956 five years from now, which represents a change of 8.32% from the current year. The
current population is 49.91% male and 50.08% female. The median age of the population in your area is 27.4, compare this to the
Entire US average which is 37.3. The population density in your area is 2,798.92 people per square mile.
Households
There are currently 65,532 households in your selected geography. The number of households has changed by 30.97% since 2000.
It is estimated that the number of households in your area will be 70,721 five years from now, which represents a change of 7.91%
from the current year. The average household size in your area is 3.32 persons.
Income
In 2014, the median household income for your selected geography is $37,166, compare this to the Entire US average which is
currently $51,972. The median household income for your area has changed by 9.23% since 2000. It is estimated that the median
household income in your area will be $41,759 five years from now, which represents a change of 12.35% from the current year.
The current year per capita income in your area is $14,633, compare this to the Entire US average, which is $28,599. The current
year average household income in your area is $48,987, compare this to the Entire US average which is $74,533.
Race & Ethnicity
The current year racial makeup of your selected area is as follows: 40.00% White, 28.62% Black, 0.09% Native American and 3.17%
Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and
5.02% Asian/Pacific Islander.
People of Hispanic origin are counted independently of race. People of Hispanic origin make up 61.42% of the current year
population in your selected area. Compare this to the Entire US average of 17.13%.
Housing
In 2000, there were 23,486 owner occupied housing units in your area and there were 26,547 renter occupied housing units in your
area. The median rent at the time was $474.
Employment
In 2014, there are 111,169 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed
that 47.61% of employees are employed in white-collar occupations in this geography, and 52.16% are employed in blue-collar
occupations. In 2014, unemployment in this area is 7.07%. In 2000, the average time traveled to work was 29.7 minutes.
34
DEMOGRAPHIC ANALYSIS
West Hardy Business ParkHOUSTON, TX
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
Demographic data © 2012 by Experian.
SUMMARY REPORT
Demographic data © 2012 by Experian.
Number of people living in a given area per square mile.
35
DEMOGRAPHIC ANALYSIS
West Hardy Business ParkHOUSTON, TX
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
POPULATION DENSITY
Demographic data © 2012 by Experian.
The number of people employed in a given area per square mile.
36
DEMOGRAPHIC ANALYSIS
West Hardy Business ParkHOUSTON, TX
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
EMPLOYMENT DENSITY
Demographic data © 2012 by Experian.
Average income of all the people 15 years and older occupying a
single housing unit.
37
DEMOGRAPHIC ANALYSIS
West Hardy Business ParkHOUSTON, TX
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
AVERAGE HOUSEHOLD INCOME
Traffic Count data © 2012 by TrafficMetrix. All rights reserved. Two-way, average daily traffic volumes.
38
DEMOGRAPHIC ANALYSIS
West Hardy Business ParkHOUSTON, TX
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
TRAFFIC COUNTS
* Traffic Count Estimate
Approved by the Texas Real Estate Commission for Voluntary UseTexas law requires all real estate licensees to give the following information
about brokerage services to prospective buyers, tenants, sellers and landlords.
Information About Brokerage ServicesBefore working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner’s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer’s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly.
IF THE BROKER REPRESENTS THE OWNER:The broker becomes the owner’s agent by entering into an agreement with the owner, usually through a written -listing agreement, or by agreeing to act as a subagent by accepting an offer of subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner’s agent anything the buyer would not want the owner to know because an owner’s agent must disclose to the owner any material information known to the agent.
IF THE BROKER REPRESENTS THE BUYER:The broker becomes the buyer’s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer’s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer’s agent anything the owner would not want the buyer to know because a buyer’s agent must disclose to the buyer any material information known to the agent.
IF THE BROKER ACTS AS AN INTERMEDIARY:A broker may act as an intermediary between the parties if the broker complies with The Texas Real Estate License
Act. The broker must obtain the written consent of each party to the transaction to act as an intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermediary in a transaction:(1) shall treat all parties honestly;(2) may not disclose that the owner will accept a price less than the asking price unless authorized inwriting to do so by the owner;(3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and(4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property. With the parties’ consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party.
If you choose to have a broker represent you,you should enter into a written agreement with the broker that clearly establishes the broker’s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If youhave any questions regarding the duties and responsibilities of the broker, you should resolve thosequestions before proceeding.
Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records.
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Buyer, Seller, Landlord or Tenant Date
CLOSING PAGE
Texas Real Estate Brokers and Salespersons are licensed and regulated by the Texas Real Estate Commission (TREC). If you have a complaint regarding a real estate licensee, you should contact TREC at P.O. Box 12188, Austin, Texas 78711-2188 or 512-465-3960.
West Hardy Business ParkHOUSTON, TX
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy ofthe information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus &Millichap is a trademark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 W0860029 Marcus & Millichap. All rights reserved.
DISCLAIMER
HOUSTON, TX
West Hardy Business Park
OFFERING MEMORANDUM
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