FAMILY DOLLAR
5.75%CAP
$2,037,200PRICE
9630 MESA DRIVE, HOUSTON, TX, 77078
New 15-year Absolute NNN lease with six (6), five (5) year options
Brand new construction, opened February 8, 2018
Site is inside Beltway 8 (Sam Houston Pkwy) which defines
“Houston Proper”
Over 148,000 people in a 5-mile radius
Traffic counts exceed 39,000 VPD
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 of the information. Buyer must verify the information and bears all risk for any inaccuracies.
LEASABLE SF8,320 SF
LEASE EXPIRATION6/30/2033
LEASE TYPEAbsolute NNN
LAND AREA0.94 AC
YEAR BUILT2018
PARKING33 Spaces
REPRESENTATIVE PHOTO
3
Overview
THE OFFERING is a single-tenant Family Dollar in Houston with a 15-year absolute NNN lease. The store opening/rent commencement was February 8, 2018. The lease has a five (5) percent rental increase in year 10 and then five (5) percent bumps for each of the six (6) five-year options. There are approximately 170 Family Dollar stores in greater Houston. Houston is a top-performing market for the chain. This Family Dollar benefits from easy ingress/egress onto Mesa, and a handsome, high-impact signage package that also includes a pylon sign. There are 33 dedicated parking spots on the property.
THE SUBJECT PROPERTY is on Mesa Drive, just off the iconic intersection of Mesa and Tidwell Road in the heart of East Houston, inside Beltway 8. Mesa is a 6-lane thoroughfare with average daily traffic counts exceeding 17,000 VPD. The Family Dollar is flanked by O’Reilly Auto and Jack in the Box. Other national retailers in immediate proximity include AutoZone, KFC/Taco Bell, Sonic Burgers, Payless, Boost Mobile, Pizza Hut, GameStop and Cricket Wireless. There are also several schools in close proximity including North Forrest High School, Fonwood Elementary and Kipp Preparatory School. There are nearly 50,000 people within a 3-mile radius of the site, and more than 134,000 within a 5-mile radius.
JOE [email protected]: 415.274.7394CA BRE# 01191110
Contact the team
IN CONJUNCTION WITH TX LICENSED BROKER: Steve SielingAzur Commercial Capital, LLC 214.888.8262
FAMILY DOLLAR IS THE SECOND LARGEST DOLLAR STORE IN THE U.S.
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 of the information. Buyer must verify the information and bears all risk for any inaccuracies.
REPRESENTATIVE PHOTO
4
Investment Highlights
8
8
90
90
BUS 90
BUS 90
HOUSTON CITY
CENTER
21,976 VPD
FONWOOD ELEMENTARY
KIPP PREPARATORY
SCHOOL
H&R BLOCK
CE KING HIGH
SCHOOL
CE KING MIDDLE SCHOOL
MONAHAN ELEMENTARY
CRAVENS EARLY
CHILDHOOD ACADEMY
ROYALWOOD ELEMENTARY
SAN JACINTO COLLEGE
PURPLE SAGE ELEMENTARY
LANCE CORPORAL ANTHONY
JUNIOR HIGH SCHOOL
TICE ELEMENTARY
CUNNINGHAM MIDDLE SCHOOL
TEXACO COUNTRY
CLUB
NORTH FOREST HIGH
SCHOOL
HM CARROLL ELEMENTARY
RHODES SCHOOLBROCK PARK
GOLF COURSE
17,084 VPD
20,809VPD
16,156 VPD
81,695 VPD
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 of the information. Buyer must verify the information and bears all risk for any inaccuracies.
55
AerialAerial
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 of the information. Buyer must verify the information and bears all risk for any inaccuracies.
HOUSTON CITY
CENTER
HOUSTON CITY
CENTER
Zoomed-In Aerial
8
69
90
10
45
10
610
1010
45
90
69
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 of the information. Buyer must verify the information and bears all risk for any inaccuracies.
6
610
8
8
8
HOUSTON
PASADENA
PEARLAND
MISSOURI CITY
Highway Aerial ATASCOCITA
O’Reilly Auto PartsJack in the BoxChase BankH&R BlockGameStopDollar General
WalgreensWalmart SupercenterLowe’sPetSmartRoss Dress for LessBig Lots
MarshallsSears Hometown StoreStarbucksGoodwillBest BuyParty City
BUSINESS SUMMARY
KEY 1-MILE 3-MILES 5-MILES
TOTAL 1-MILE 3-MILES 5-MILES
Businesses 179 879 3,197
Employees 1,556 9,540 43,105
Residential Population 12,161 53,300 148,887
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 of the information. Buyer must verify the information and bears all risk for any inaccuracies.
Submarket Overview
RETAILERS IN CLOSE PROXIMITY INCLUDE:
REPRESENTATIVE PHOTO
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 of the information. Buyer must verify the information and bears all risk for any inaccuracies.
PRICE $2,037,200 Price Per Square Foot: $244.86
Capitalization Rate: 5.75%
Total Rentable Area (SF): 8,320
Lot Size (AC): 0.94
STABILIZED INCOME PER SQUARE FOOTScheduled Rent $14.08 $117,139
Effective Gross Income $14.08 $117,139
LESS PER SQUARE FOOTTaxes NNN $0.00
Insurance NNN $0.00
Total Operating Expenses NNN $0.00
EQUALS NET OPERATING INCOME $117,139
REPRESENTATIVE PHOTO
8
Income & Expense
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 of the information. Buyer must verify the information and bears all risk for any inaccuracies.
TENANT INFO LEASE TERMS RENT SUMMARY
TENANT NAME SQ. FT. PERCENT OF GLA CURRENT RENT
MONTHLY RENT YEARLY RENT MONTHLY
RENT/FT YEAR RENT/FT
Family Dollar 8,320 2/8/2018 06/30/28 $117,139 $9,762 $117,139 $1.17 $14.08
07/01/28 06/30/33 $10,250 $122,996 $1.23 $14.78
Option 1 07/01/33 06/30/38 $10,762 $129,146 $1.29 $15.52
Option 2 07/01/38 06/30/43 $11,300 $135,603 $1.36 $16.30
Option 3 07/01/43 06/30/48 $11,865 $142,383 $1.43 $17.11
Option 4 07/01/48 06/30/53 $12,459 $149,502 $1.50 $17.97
Option 5 07/01/53 06/30/58 $13,081 $156,977 $1.57 $18.87
Option 6 07/01/58 06/30/63 $13,736 $164,826 $1.65 $19.81
TOTALS: 8,320 $117,139 $9,762 $117,139 $1.17 $14.08
9
Rent Roll
BASE RENT
DATE RANGE MONTHLY RENT ANNUAL RENT
2/2018-6/30/2028 $9,762 $117,1397/1/2028-6/302033 $10,250 $122,996
OPTION RENTS
DATE RANGE MONTHLY RENT ANNUAL RENT
#1. 7/1/2033 - 6/30/2038 $10,762 $129,146#2. 7/1/2038 - 6/30/2043 $11,300 $135,604#3. 7/1/2043 - 6/30/2048 $11,865 $142,383#4. 7/1/2048 - 6/30/2053 $12,458 $149,503#5. 7/1/2053 - 6/30/2058 $13,082 $156,978#6. 7/1/2058 - 6/30/2063 $13,736 $164,827
RENT
TENANT Family DollarBUILDING SF 8,320 SFLEASE TYPE Absolute NetLANDLORD OBLIGATIONS NoneTERM 15 YearsGRAND OPENING February 8, 2018RENT COMMENCEMENT February 8, 2018EXPIRATION June 30, 2033OPTIONS Six (6), Five (5) year options
PREMISE& TERM
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 of the information. Buyer must verify the information and bears all risk for any inaccuracies.
REPRESENTATIVE PHOTO
LANDLORD OBLIGATIONSNone.
RIGHT OF FIRST REFUSALTenant has the right to purchase the Premises within 10 day’s notification from Landlord. In the event that Tenant does not deliver a ROFR Exercise Notice within the Notice Period, Tenant will be deemed to have waived its ROFR and Landlord will have the right to proceed with the proposed trasaction with the prospective Bona Fide Purchaser.
LEASEPROVISIONS
EXPENSES
10
Lease Abstract
SE 3RD STREET
8,320RENTABLE SF
0.94ACRES
33SPACES
This site plan is a rendering that has been created based on sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
FENCE
SIGN
NOT A PART
NOT A PART
TIDWELL ROAD
MES
A D
RIV
E
11
Site Plan
11
ABOUT FAMILY DOLLAR
LOCATIONS IN 46 STATES AND THE DISTRICT OF COLUMBIA8,100
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 of the information. Buyer must verify the information and bears all risk for any inaccuracies.
With over 8,100 stores in 46 states and the District of Columbia, Family Dollar is the nation’s second largest dollar store. The company also operates nine distribution centers that are each over 900,000 SF.
Family Dollar targets shopping for a family earning less than $40,000 a year. Consumables (food, health, beauty aids, and household items) account for about two-thirds of sales. Family Dollar also sells apparel, shoes, and linens.
Family Dollar stores are low-format and are located in low and middle-income rural and urban areas. Most goods and groceries (national brands, Family Dollar private labels, and unbranded items) are sold at a variety of discounted prices, the majority of which are under $10.
For fiscal 2016, net sales were $19 billion and net income was $565 million.
In July 2015, Family Dollar was acquired by Dollar Tree,Inc. The acquisition price for Family Dollar was $9 billion in cash and Dollar Tree stock. The combined Dollar Tree-Family Dollar entity is now the largest discounter in North America with over 13,000 stores in 48 states and Canada with annual sales over $219 billion. Both brands will continue to operate separately.
REPRESENTATIVE PHOTO
12
Tenant Overview
POPULATION
1-MILE 3-MILES 5-MILES
2010 11,161 49,733 134,218
2017 12,161 53,300 148,887
2022 12,933 56,837 160,505
2017 HH INCOME
1-MILE 3-MILES 5-MILES
Average $41,378 $44,157 $48,998
Median $31,400 $35,316 $37,469
TOP EMPLOYERS
EMPLOYER # OF EMPLOYEES
Walmart 37,000
Memorial Hermann Health System 24,108
H-E-B 23,732
University of Texas MD Anderson Cancer Center 21,086
McDonald’s Corp 20,918
HOUSTON
THE POPULATION COUNT CONTAINS OVER 148,000 PEOPLE
WITHIN A 5-MILE RADIUS
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 of the information. Buyer must verify the information and bears all risk for any inaccuracies.
13
Demographics
HOUSTON, TEXAS
HOUSTON is the fourth-largest city in the United States and the largest city within the state of Texas. The city has a population of about 2.3 million within an area of 656 square miles. Houston is the economic center of Greater Houston, the fifth-largest metropolitan area in the U.S. with a population over 6.7 million. The city has a population from various ethnic and religious backgrounds and a large and growing international community. It is home to many cultural institutions and exhibits—attracting more than 7 million visitors a year to the Houston Museum District. Houston has an active visual and performing arts scene in the Theater District and is one of few U.S. cities that offer year-round resident companies in all major performing arts.Because of these strengths, Houston is designated as a global city by the Globalization and World Cities Study Group and Network and global management consulting firm A.T. Kearney.
HOUSTON’S ECONOMY has a broad industrial base in the energy, manufacturing, aeronautics, transportation, and health care sectors and is a leading center for building
oil field equipment; only New York City is home to more Fortune 500 headquarters in the city limits.
HOUSTON ECONOMY
2.3 MILLION
HOUSTON POPULATION (ESTIMATED)
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 of the information. Buyer must verify the information and bears all risk for any inaccuracies.
14
Location Overview
We’d love to hearfrom you.
CAPITAL PACIFIC COLLABORATES. CLICK HERE TO MEET OUR SAN FRANCISCO TEAM:
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 of the information. Buyer must verify the information and bears all risk for any inaccuracies.
JOE CACCAMOJOHN ANDREINI
ZANDY SMITH
DAVE LUCAS
RICK SANNER AARON SUSMAN
CHRIS KOSTANECKIZEB RIPPLE CHRIS PETERS
JACK NAVARRA
JOE [email protected]: 415.274.7394CA BRE# 01191110
IN CONJUNCTION WITH TX LICENSED BROKER: Steve SielingAzur Commercial Capital, LLC 214.888.8262
Copyright © 2017 Capital Pacific Partners
SFO. PDX. SEA. CAPITALPACIFIC.COM
REPRESENTATIVE PHOTO
11-2-2015
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 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 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 agreement. A buyer's agent must perform the broker’s minimum 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 transaction. 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 different 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:
ᴑ that the owner will accept a price less than the written asking price;ᴑ that the buyer/tenant will pay a price greater than the price submitted in a written offer; andᴑ 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 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 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 and retain a copy for your records.
Information About Brokerage Services Texas law requires all real estate license holders to give the following information about
brokerage services to prospective buyers, tenants, sellers and landlords.
.
Designated Broker of Firm License No. Email Phone
Licensed Supervisor of Sales Agent/Associate
License No. Email Phone
Licensed Broker /Broker Firm Name or Primary Assumed Business Name
License No. Email Phone
Regulated by the Texas Real Estate Commission Information available at www.trec.texas.gov
IABS 1-0
Date Buyer/Tenant/Seller/Landlord Initials
Sales Agent/Associate’s Name License No. Email Phone
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