beechcrest shopping center - loopnet · 2018. 10. 31. · occupancy 97% traffic counts beechnut st...

1 0 8 2 8 - 1 0 8 6 2 B E E C H N U T S T. , • H O U S T O N , T X 7 7 0 3 9E X E C U T I V E S U M M A R Y

Beechcrest Shopping Center

PROPERTY SUMMARY

FINANCIAL SUMMARY

B E E C H C R E S T S H O P P I N G C E N T E R

2

TENANT SUMMARY

Tenant NRA% of

PropertyIndustry

DD's Discounts 22,500 25.1% Discount Goods

Wazobia African Markets 14,555 16.2% Grocery

Beauty Young 13,341 14.9% Health/ Beauty

Dollar General 11,481 12.8% Discount Goods

City Gear 4,100 4.6% Clothing

Lu-An Furniture 3,400 3.8% Furniture

Liquor Store 4 2,800 3.1% Food/ Beverage

Holman Medical 2,800 3.1% Health/ Beauty

Jolynn's Crawfish 2,000 2.2% Food/ Beverage

Tacqueria El Charro 1,800 2.0% Food/ Beverage

Ace Dry Cleaners 1,650 1.8% Other

Cell Net, Inc. 1,500 1.7% Other

N'Joi Coffee & Tea 1,200 1.3% Food/ Beverage

Non-PAD NRA 83,127 92.7%

Lone Star Title (PAD) 2,800 3.1% Other

Pizza Hut (PAD) 1,352 1.5% Food/ Beverage

PAD NRA 4,152 4.6%

Occupied NRA 87,279 97.3%

Available 2,400 2.7%

TOTAL 89,679 100.0%

TENANT MIX NOI GRAPH

89,679 SF

42.5%

34.0%

16.2%

4.6%

National Local Grocery Regional

600,000

650,000

700,000

750,000

800,000

850,000

900,000

950,000

1,000,000

1,050,000

Year 1Year 2

Year 3Year 4

Year 5Year 6

Year 7Year 8

Year 9Year 1

0

Year 11

LOCATION 10828-10862 Beechnut St., Houston TX 77072

YEAR BUILT 1981

NET RENTABLE AREA 89,679 SF

LAND AREA 7.17 AC

OCCUPANCY 97%

TRAFFIC COUNTS Beechnut St 36,215 Wilcrest ST 22,604 Total 59,819

YEAR 1 NOI $907,952

WTD. AVERAGE TENURE 6.9 Years

WTD. AVERAGE REMAINING TERM 3.2 Years

5-YR CAGR 2.75%

ROLLOVER SUMMARY (% of Total NRA) Within 3 Years 36%

3

INVESTMENT HIGHLIGHTS


• Residential area is home to over 232,000 residents within 3 miles

• Strong multi-family submarket containing 40,600 units (within 3-miles) performing at 92% average occupancy contributes to density

• Less than a half mile away from Beltway 8, providing immediate access to Houston’s major employment districts

• Grocery Anchored with a local ethnic grocery provider on a new lease

• Diverse tenant base of predominantly e-commerce resistant retailers

• 7-Year weighted average tenure at the Property

• Carefully crafted tenant roster caters to the needs of the surrounding demographic

• Diverse surrounding economic population with an average income of $53,000

• Located in Houston’s Southwest submarket, with a current occupancy of 94%+

• #1 retail submarket in Houston for T-12 Net Absorption (971,000 SF)

• Houston Metro: #2 in population and #3 in job growth in the last 12 months

BEECHCRESTSHOPPING CENTER

#877072

#677099

#48 77082

#977083

#277036

ZIP CODE DENSITY (HOUSTON RANKING)

LOCATED IN AND IMMEDIATELY SURROUNDED BY 4 OF THE TOP 10 ZIP CODES IN HOUSTON AS MEASURED BY

POPULATION PER SQUARE MILE

693-Mile Radius

COMPETITIVE GROCER MAP

4


B E E C H N U T S T R E E T ( 3 6 , 2 1 5 V P D )

WIL

CR

ES

T D

RI V

E ( 2

2, 6

04

VP

D)

Loan StarTitle Loans2,800 SF

Ace Dry Cleaners

1,650 SF

N’Joi Coffee

1,200 SF

Taqueria1,800 SF

Lu-An Furniture

3,400 SF

Holman Medical

2,800 SF

Jolynn’s Crawfish

2,000 SF

The Liquor Store 4

2,800 SF

Beauty Young

13,341 SF

Wazobia African Market

14,555 SF

Dollar General

11,481 SF

dd’s Discounts

22,500 SF

Available2,400 SF

City Gear4,100 SF

Cell Net1,500 SF

Pizza Hut1,352 SF

5

S I T E P L A N


6


George BushPark

LakeHouston

State Park

ArmandBayouPark

WilliamP. HobbyAirport

George BushIntercontinentalAirport

HARRISCOUNT Y

LIBER T YCOUNT Y

FOR T BENDCOUNT Y

MONTGOMERYCOUNT Y

BRAZORIACOUNT Y

GALVESTONCOUNT Y

Greenspoint

The Woodlands

69

69

69

Westpark Tollway

Katy Frwy

Southw

est F

rwy

Northwest Frwy

North Frw

y

Ea

stex

Frw

y

NorthLoop

LoopSouth

We

st L

oo

p

Ea

st L

oo

p

Sam Houston Tollway

Sam Houston Pkwy

ExxonMobilCorporate Headquarters

Pasadena Frwy

Baytown East Frwy

So

uth

Frw

y

Fo

rt

Pkw

y

Gulf Frw

y

Proposed

GrandPkwy

Proposed Grand Pkwy

Westheimer Rd

Beaumont Hwy

Ben

d

Grand Pkwy

LakeHouston

San Jacinto

Bay

SheldonReservoir

GalvestonBay

BayportTerminal

SmithersLake

ClearLake

Barbour’s CutTerminal

CBD

EnergyCorridor

The GalleriaUptown District

Westchase

TexasMedical Center

Port of Houston


Bissonnet StBissonnet StBissonnet StBissonnet St

S Course Dr

S Course Dr

Wilc

rest

Dr

Wilc

rest

Dr

S Ki

rkw

ood

RdS

Kirk

woo

d Rd

Beechnut StBeechnut St

Beechnut StBeechnut St


ACCESSIBILITY & TRANSPORT:

• Ideally located at the corner of Wilcrest and Beechnut with visibility to 36,200 cars per day along Beechnut and 22,600 along Wilcrest

• Direct access via Beechnut to both Beltway 8 and Interstate 69 in under 5 minutes, providing convenient regional access to all major employment districts

• Within walking distance of four Metro stops serving the 161, 004 and 068 routes, the property is accessible to a transportation constrained population

LIVABILITY:

• Walking distance to award-winning KIPP campus with 1,994 students across an elementary school, middle school and high school

• Alief ISD serves the surrounding dense residential population with 46 narrowly dispersed schools

• Heavily reliant on multi-family housing options with 40,600 unites within 3-miles

EMPLOYMENT:

WESTCHASE DISTRICT PROXIMITY (5 MINUTES AWAY) • Houston’s 4th largest office submarket (out of 21) with 18 million square feet of rentable

area

• Major Westchase employers include Bank of America, NOV, Phillips 66, Cisco, MetLife, Target, Kroger, BMC Software and many more

• Over 1,500 businesses and 81,000+ employees

NEARBY INDUSTRIAL • Over 9 million square feet of industrial product within a 3- mile radius spread across 378

properties

• Southwest industrial submarket occupancy of 95.4% • Source of steady, long term job base for Alief population

7


THE GALLERIATHE GALLERIACBDCBD

WEST SAM HOUSTON TOLLWAYWEST SAM HOUSTON TOLLWAY

WILCREST DRIVEWILCREST DRIVE

BELLA

IRE

BOULEVA

RD

BELLA

IRE

BOULEVA

RD

WESTPARK TOLLWAYWESTPARK TOLLWAY

8

NORTHEAST FACING AERIAL


WESTCHASEWESTCHASE

OAK PARKOAK PARK

ENERGY CORRIDORENERGY CORRIDOR

MEMORIAL CITYMEMORIAL CITY

WEST SAM HOUSTON TOLLWAY

WEST SAM HOUSTON TOLLWAY

WIL

CRES

T D

RIVE

WIL

CRES

T D

RIVE

BELLAIRE BOULEVARDBELLAIRE BOULEVARD

WESTPARK TOLLWAYWESTPARK TOLLWAY

9

NORTH FACING AERIAL


10

IH 69 | SOUTHWEST FREEWAYIH 69 | SOUTHWEST FREEWAY

WILCREST DRIVE

WILCREST DRIVE

BELLAIRE BOULEVARDBELLAIRE BOULEVARD

OLLE MIDDLE SCHOOLOLLE MIDDLE SCHOOLHORN ELEMENTARY SCHOOLHORN ELEMENTARY SCHOOL


SOUTH FACING AERIAL

DEMOGRAPHICS 1-mile 3-mile 5-mile

POPULATION2023 Projection 27,933 247,181 592,9112018 Estimate 26,543 232,572 554,3372010 Census 24,966 213,440 499,8192000 Census 26,191 204,315 465,116

POPULATION GROWTH2018-2023 Growth 5.24% 6.28% 6.96%2010-2018 Growth 6.32% 8.96% 10.91%2000-2010 Growth -4.68% 4.47% 7.46%

INCOMEAverage Household Income $43,641 $52,976 $68,117Housing $103,636 $123,248 $152,972

2018 EST. POPULATION BY SINGLE CLASSIFICATION OF RACEWhite Alone 36.85% 34.29% 37.68%Black/African American Alone 18.88% 22.15% 24.51%American Indian/Alaskan Native Alone 0.91% 0.89% 0.78%Asian Alone 13.38% 16.39% 15.69%Native Hawaiian/Pacific Islander Alone 0.06% 0.09% 0.07%Some Other Race Alone 25.32% 21.59% 17.02%Two or More Races 4.61% 4.61% 4.24%

11

HOUSTON RETAIL OVERVIEW

HOUSTON RETAIL OVERVIEW• The Houston retail market remained strong during the second quarter of 2018, with the majority of market

fundamentals making positive gains from the end of 2017. The vacancy rate remained constant at a low rate of 5.1%. Net absorption in 2Q 2018 was a positive 466,589 SF. Quoted rental rates increased from the second quarter 2018, ended at $16.87 per square foot per year. A total of 52 buildings with 850,000 square feet of retail space were delivered to the market in the quarter, with 4 million square feet under construction at the end of the quarter.

INVENTORY AND CONSTRUCTION• During the first quarter of 2018, 52 buildings totaling 1.1 million square feet were completed in the Houston retail

market. Over the past four quarters, a total of 4.6 million square feet of retail space has been built in Houston. There was 4 million square feet of retail space under construction at the end of the second quarter of 2018. Total retail inventory in the Houston market area amounted to 339.9 million square feet in 13,690 buildings.

NET ABSORPTION• Retail net absorption was solid in Houston second quarter 2018, with a positive 467,000 square feet, marking

Houston’s 23rd consecutive quarter of positive net absorption. In the first quarter 2018, net absorption was 1.1 million. In the fourth quarter 2017, net absorption was 1.5 million while in the third quarter of 2017, absorption came in at positive 1.32 million square feet in the market.

VACANCY• Over the past four quarters, the market has seen an overall decrease in vacancy rate, with the rate going from 5.6%

in the third quarter of 2017, to 5.6% at the end of 2017, to 5.1% in the first quarter of 2017 and remaining stable at 5.1% at the end of Q2 2018.

RENTAL RATES• Average quoted asking rental rates in the Houston Retail Market have grown moderately over previous quarter

levels. Quoted rents ended the fourth quarter of 2018 at $16.87 per square foot per year. That compares to $16.75 per square foot in the first quarter 2018, and $16.68 per square foot at the end of the fourth quarter 2017. This represents an 1.01% increase in rental rates in the current quarter, and a 1.03% increase from four quarters ago.

SOUTHWEST RETAIL OVERVIEW• The Southwest retail submarket of Houston remained steady as of the second quarter of 2018. Vacancy rate within

the submarket ended the quarter at 5.7%. Q2 net absorption was 67,375 SF, however the submarket led the city in T-12 net absorption with nearly 1M SF of retail absorbed. Rental rates for the quarter ended at an average of $15.62/SF. 155,751 SF of retail was delivered in the last quarter while 1.1 million SF are currently under construction.

#1 in Retail Investment Returns on 10-Year Hold Basis according to The National Council of Real Estate In-vestment (NCREIF). Houston retail fundamentals remain strong driven by nation leading employment and population growth.


RETAIL MARKET STATISTICS

Inventory

• 2,012 Buildings

• 55,376,600 Total GLA

Vacancy

• 3,067,160 Direct SF

• 3,076,486 Total SF

• 5.5% Vacant

Net Absorption

• Q2 2018: 67,375 SF

• T-12: 971,076 SF

Deliveries

• Q2 2018: 155,751 SF

• T-12: 908,359 SF

Under Construction

• 25 Buildings

• 1,181,428 Total GLA

Rental Rates

• $15.16 Avg. Quoted Rent

Inventory

• 13,690 Buildings

• 339,991,121 Total GLA

Vacancy

• 18,250,943 Direct SF

• 18,516,209 Total SF

• 5.4% Vacant

Net Absorption

• Q2 2018: 466,589 SF

• T-12: 3,869,330 SF

Deliveries

• Q2 2018: 846,067 SF

• T-12: 4,590,342 SF

Under Construction

• 125 Buildings

• 4,044,359 Total GLA

Rental Rates

• $16.80 Avg. Quoted Rent

HOUSTON MSANORTHEAST

Deliveries Net Absorption Vacancy Rate Forecast

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

(500,000)

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

20131Q 2Q 3Q 4Q

20141Q 2Q 3Q 4Q

20151Q 2Q 3Q 4Q

20161Q 2Q 3Q

20171Q 2Q 3Q 4Q

20181Q 2Q 3Q 4Q

Houston Retail Supply & DemandHOUSTON RETAIL SUPPLY & DEMAND

TENANT PROFILES

12


DD’S DISCOUNTSSquare Feet: 22,500Website: www.ddsdiscounts.comPublic/Private: Public (ROST)Credit Rating: A- (S&P)

DD’s Discounts is owned and operated by Ross Stores, Inc., which is an S&P 500, Fortune 500 and NASDAQ 100 Company headquartered in Dublin, California, with fiscal 2017 revenues of $14.1 billion, up 9.3% YOY from 2016. The Company operates Ross Dress for Less® (“Ross”), the largest off-price apparel and home fashion chain in the United States with 1,409 locations in 37 states, the District of Columbia, and Guam at fiscal 2017 year-end. Ross offers first-quality, in-season, name brand and designer apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 60% off department and specialty store regular prices every day. The Company also operates 213 dd’s DISCOUNTS® in 16 states at the end of fiscal 2017 that feature a more moderately-priced assortment of first-quality, in-season, name brand apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 70% off moderate department and discount store regular prices every day.

WAZOBIA AFRICAN MARKETSquare Feet: 13,665Website: https://wazobiaafricankitchen.com/Public/Private: Private

Locally owned and operated, Wazobia African Market is a privately owned restaurant and supermarket serving traditional African meals and ingredients drawn mainly from Ghana and Nigeria. After success in their first location in West Houston along Westheimer Road, the company has signed a lease to expand into their second Houston location at Beechcrest Shopping Center. Given the diverse demographics and high immigrant population in the Southwest submarket,

the market/kitchen will be perfectly situated within its target audience.

TENANT PROFILES

13


DOLLAR GENERAL Square Feet: 11,481Website: www.dollargeneral.comPublic/Private: Public (NYSE: DG)Credit Rating: BBB (S&P)

Dollar General Corporation (NYSE:DG) has been delivering value to shoppers for over 75 years resulting in a net sales increase of 10.6% in Q2 2018 to $6.4 billion, up from $5.8 billion in Q2 2017. Dollar General helps shoppers Save time. Save money. Every day!® by offering products that are frequently used and replenished, such as food, snacks, health and beauty aids, cleaning supplies, basic apparel, housewares and seasonal items at everyday low prices in convenient neighborhood locations. Dollar General operated 15,015 stores in 44 states as of August 3, 2018. In addition to high-quality private brands, Dollar General sells products from America’s most-trusted manufacturers such as Clorox, Energizer, Procter & Gamble, Hanes, Coca-Cola, Mars, Unilever, Nestle, Kimberly-Clark, Kellogg’s, General Mills, and PepsiCo.

ULTRA BEAUTY SUPPLYSquare Feet: 14,231Website: https://ultra-beauty-supply.business.site/Public/Private: Private

Locally owned and operated, Ultra Beauty Supply is a low-cost beauty supply store selling products such as lipstick, eyeliner, facial products, hair extensions, and much more. Having oc-cupied the space since Q2 2013 and reporting sales per square foot of well over $40 since 2015, the single location store is earning a healthy spread above its rent of $8.75/SF

CITY GEAR Square Feet: 4,100Website: www.citygear.comPublic/Private: Private

CITY GEAR, LLC operates men’s apparel, footwear, and accessories retail stores. The company offers shoes, tops, bottoms, hats, and socks from brands including Nike, Jordan, Adidas, and Levi’s. The Memphis based company, formerly known as Shelmar retail Partners LLC, is headquartered in Memphis, TN and changed its name to CITY GEAR, LLC in June 2012. Today the company operates 130 stores throughout the central United States.

#1 POPULATION GROWTH AMONG U.S. METROS SINCE 2010(#2 in forecasted population growth through 2030*)

#1 GDP PER CAPITA IN THE WORLD(#3 GDP growth since 2000 among U.S. metros)

#1 JOB GROWTH AMONG U.S. METROS SINCE 2006(#3 in forecasted job growth for the next 10 years*)

#3 AMONG U.S. CITIES WITH 46 FORTUNE 1000 COMPANIES HEADQUARTERED IN THE CITY

101,800 JOBS ADDED IN THE TRAILING 12 MONTHS

94,417 NEW RESIDENTS FROM JULY 2016 THRU JULY 2017 (#2 in the U.S.)

$232,000 MEDIAN HOME VALUE AS OF DECEMBER 2017

RECOVERING HOUSTON ECONOMY

THE HOUSTON ECONOMY HAS RECOVERED FROM THE RECENT ENERGY MARKET CORRECTION AND IS BACK IN FULL GROWTH MODE. HOUSTON ADDED 101,800 JOBS T-12, DRIVEN BY STRONG GROWTH IN PROFESSIONAL AND BUSINESS SERVICES, EDUCATION AND HEALTH SERVICES, MANUFACTURING AND GOVERNMENT.

ADDITIONALLY, 94,417 NEW RESIDENTS MIGRATED TO HOUSTON FROM JULY 2016 – JULY 2017 (2ND IN THE NATION) AND THE HOUSTON BUSINESS CYCLE INDEX GREW BY 2.2% IN 2017, INDICATING SOLID EVIDENCE OF A STEADILY GROWING ECONOMY.

14


I N V E S T M E N T A D V I S O R YRYAN WESTSenior Managing Director

T. (713) 852-3535

[email protected]

JOHN INDELLIDirector

T. (713) 852-3407

[email protected]

CHARLIE STRAUSSReal Estate Analyst

T. (713) 212-6574

[email protected]

ETHAN GOLDBERGReal Estate Analyst

T. (713) 212-6549

[email protected]

9 Greenway Plaza, Suite 700

Houston, Texas 77046

T. (713) 852-3500

F. (713) 527-8725

hfflp.com

F I N A N C I N GI N Q U I R I E S

MICHAEL JOHNSONDirector

T. (713) [email protected]

This Offering Memorandum has been prepared by HFF for use by a limited number of recipients. All information contained herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, expressed or implied, as to the accuracy or completeness of the information contained herein. Further, the Offering Memorandum does not constitute a representation that no change in the business or affairs of the property or the Owner has occurred since the date of the preparation of the Offering Memorandum. All analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the recipient. HFF and Owner and their respective officers, directors, employees, equity holders and agents expressly disclaim any and all liability that may be based upon or relate to the use of the information contained in this Offering Memorandum.

Additional information and an opportunity to inspect the property will be made available upon written request to interested and qualified prospective investors.

Owner and HFF each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the property and/or terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligations to any recipient reviewing this Offering Memorandum or making an offer to purchase the property unless and until such offer is approved by Owner, a written agreement for the purchase of the property has been fully executed, delivered and approved by Owner and its legal counsel, and any obligations set by Owner thereunder have been satisfied or waived.

The recipient (“Recipient”) agrees that (a) the Offering Memorandum and its contents are confidential information, except for such information contained in the Offering Memorandum, which is a matter of public record, or is provided from sources available to the public (b) the Recipient, the Recipient’s employees, agents and consultants (collectively, the “need to know parties”) will hold and treat it in the strictest of confidence, and the Recipient and the need to know parties will not, directly or indirectly, disclose or permit anyone else to disclose its contents to any other person, firm, or entity without the prior written authorization of HFF and the Owner, and (c) the Recipient and the need to know parties will not use or permit to be used this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Owner or HFF or for any purpose other than use in considering whether to purchase the property. The Recipient and the need to know parties agree to keep this Offering Memorandum and all confidential information contained herein permanently confidential and further agree to use this Offering Memorandum for the purpose set forth above. If the Recipient has no interest in the property, or if in the future the Recipient or owner discontinue such negotiations, the Recipient will return this Offering Memorandum to HFF.

beechcrest shopping center - loopnet · 2018. 10. 31. · occupancy 97% traffic counts beechnut st...

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