OFFE

RIN

G M

EM

OR

AN

DU

M

30 Lack LaneClute, TX 77531

LACK LANEA MULTIPLE TENANT RETAIL INVESTMENT PROPERTY

LACK LANECONTENTS

Exclusively Marketed by:

Mike Vandaveer Mark McCrummenBroker - Owner Licensed Agent(713) 725-0416 (713) 557-9149License # 470226 License # 701796mike@VandaveerCommercial.com mark@VandaveerCommercial.com

We obtained the following information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions,change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice.  We include projections, opinions, assumptions or estimates for example only, and they may not represent the current or future performance of theproperty. You and your tax and legal advisors should conduct your own investigation of the property and transaction.

01 Executive Summary Investment Summary 3 Location Summary 4

02 Property Description Property Features 5

03 Rent Roll Rent Roll Details 6 Lease Expiration 7 Tenant Profile 8

04 Financial Analysis Income & Expense Analysis 9 Multiyear Cash Flow Assumptions 10 Cash Flow Analysis 11 Disposition Sensitivity Analysis 13

05 Demographics Demographics 14 Demographic Charts 15

LACK LANE Investment Summary | 03

OFFERING SUMMARYADDRESS 30 Lack Lane

Clute TX 77531

COUNTY Brazoria

MARKET Southern Brazoria County

SUBMARKET Clute

BUILDING SF 59,338 SF

LAND SF 148,104 SF

YEAR BUILT 1968

YEAR RENOVATED 2014

MAJOR TENANT/S Bel Furniture

OWNERSHIP TYPE Fee Simple

FINANCIAL SUMMARYOFFERING PRICE $3,625,000

PRICE PSF $61.09

OCCUPANCY 96.80 %

NOI (CURRENT) $291,711

CAP RATE (CURRENT) 8.05 %

CAP RATE (PRO FORMA) 8.21 %

PROPOSED FINANCINGLOAN TYPE Fully Amortized

DOWN PAYMENT $906,250

LOAN AMOUNT $2,718,750

INTEREST RATE 6.25 %

ANNUAL DEBT SERVICE $238,453

LOAN TO VALUE 75 %

AMORTIZATION PERIOD 20 Years

DEMOGRAPHICS 1 MILE 3 MILE 5 MILE2018 Population 8,467 42,688 56,942

2018 Median HH Income $51,193 $61,338 $62,078

2018 Average HH Income $65,042 $79,231 $81,884

Lack Lane is an established multiple tenant retail shoppingcenter in Clute, Texas that is currently over 95% occupied witheleven (11) existing tenants. It is anchored by Bel Furniture, areputable furniture store headquartered in Houston that has 15current locations in Texas with the plan to add more locations inthe future.

Over the past five (5) years the Landlord has diligently andmethodically improved this older property both externally in thecommon areas and internally in each space when securing newtenants. The property is currently in good condition with acomplimentary combination of established tenants.

The high and attractive initial CAP Rate (8.05%) shouldincentivize a Buyer to take advantage of good returnsimmediately. In addition, most of the rental rates are currentlyunder market and have periodic rental rate increases whichallows for increased potential returns for any buyer in the initialfew years of the investment while continuing to build value overtime.

LACK LANE Location Summary | 04

This property is situated in the center of theBrazosport Area (Lake Jackson, Clute, Freeport, etc.)which has a rapidly expanding petrochemicalindustry lead by Dow Chemical, BASF, and others. Inthe past five (5) plus years this industry hascommitted billions of dollars of capitalimprovements to their facilities that has createdthousands of jobs and a positive compoundingfinancial investment to the surrounding businessesand community.

Lack Lane is located at the Southwest corner of DixieDrive and Plantation Drive which is the border ofLake Jackson and Clute city limits. Both Dixie Driveand Plantation Drive are primary local thoroughfaresconnecting retail areas to residential with directaccess to highways and industry.

This location is less than one (1) mile from Highway288, which is the primary highway from Houston tothe Gulf Coast that goes directly through the entireBrazosport Area. Lack Lane is also less than one (1)mile from the main entrances of Dow Chemical andBASF's local massive industrial facility.

This property is surrounded by established retailproperties in the immediate area and largeresidential areas in less than a one (1) mile radius.Lack Lane has easy and direct access to bothPlantation Drive and Dixie Drive.

Regional Map

Locator Map

LACK LANE Property Features | 05

Site DescriptionNUMBER OF TENANTS 11

BUILDING SF 59,338

LAND SF 148,104

LAND ACRES 3.40

YEAR BUILT 1968

YEAR RENOVATED 2014

# OF PARCELS 1

ZONING TYPE Commercial/Retail

NUMBER OF BUILDINGS 2

PARKING RATIO 3.25/1000

NUMBER OF INGRESSES 4

NUMBER OF EGRESSES 4

CONSTRUCTIONFOUNDATION Slab

FRAMING Concrete

EXTERIOR Stucco

PARKING SURFACE Asphalt

ROOF Concrete

TENANT INFORMATIONMAJOR TENANT/S Bel Furniture

SHADOW ANCHOR EZ Pawn

LACK LANE Rent Roll Details | 06

Lease Term Rental RatesSuite Tenant Name Square

Feet% of NRA Lease Start Lease End Begin Date Monthly

Base RentMonthlyPSF

Annual BaseRent

AnnualPSF

Lease Type Options/Notes

30LackLane

0 0.00% 07/01/21 FUTURE

32LackLane

Infuse Dance 3,754 6.33% 01/01/00 06/30/20 CURRENT $3,544 $0.94 $42,533 $11.33 Base Year

34LackLane

Panda Tree Studio 1,440 2.43% 05/01/18 04/30/21 CURRENT $1,250 $0.87 $15,005 $10.42 Base Year Monthly Rent currently $1,250.Will increase by $50 permonth each year thereafter.

60LackLane

Bel Furniture 35,000 58.98% 04/01/14 06/30/24 CURRENT $15,488 $0.44 $185,850 $5.31 Base Year Monthly Rent currently$15,500. Will increase to$16,000 on July 1, 2019 andincrease 2.5% each yearthereafter.

76 FlagLakeDrive

Brazosport Foods 3,260 5.49% 01/01/19 12/31/22 CURRENT $2,999 $0.92 $35,990 $11.04 Base Year Monthly Rent currently$3,000. Will increase by $100per month each yearthereafter.

78 FlagLakeDrive

Excel Finance 1,090 1.84% 08/01/19 07/31/22 CURRENT $1,100 $1.01 $13,200 $12.11 Base Year Monthly Rent initially $1,100.Will increase by $100 permonth each year thereafter.

80FlagLakeDrive

Stork Shot 1,090 1.84% 04/01/19 03/31/23 CURRENT $1,100 $1.01 $13,200 $12.11 Base Year Monthly Rent currently $1,100.Will increase by $100 permonth each year thereafter.

82 FlagLakeDrive

First Insurance Agency -Elaine Shugart

880 1.48% 10/01/16 09/30/21 CURRENT $806 $0.92 $9,671 $10.99 Base Year Monthly Rent currently $806.Will increase to $825 onOctober 1, 2019 for balance oflease term.

84FlagLakeDrive

Unshackled By Grace 2,400 4.04% 04/01/16 03/31/21 CURRENT $1,388 $0.58 $16,656 $6.94 Base Year Monthly Rent currently $1,388.

86 FlagLakeDrive

Beauty & Beast Fitness 1,440 2.43% 11/01/16 10/31/19 CURRENT $1,418 $0.99 $17,021 $11.82 Base Year Monthly Rent currently $1,418.

88 FlagLakeDrive

So and Sew 1,440 2.43% 09/01/15 08/31/19 CURRENT $1,400 $0.97 $16,805 $11.67 Base Year Monthly Rent currently is$1,400. Tenant is on an annuallease that renews every year.

90DixieDrive

EZ Pawn 5,140 8.66% 01/01/00 08/31/23 CURRENT $4,643 $0.90 $55,718 $10.84 Base Year

Totals 56,934 $35,137 $421,648

LACK LANE Lease Expiration | 07

LACK LANE Tenant Profile | 08

Name ValueTrade Name Bel FurnitureHeadquartered HoustonWebsite www.belfurniture.com# of Locations 15

DescriptionThough its beginnings were humble, Bel Furniture has evolved into one of the foremostfurniture retailers in Texas. The company now boasts 15 locations with 3 distributionscenters throughout Houston, Humble, Webster and Beaumont, including a megashowroom in San Antonio. We have a goal of reaching 25 showrooms in Texas over thenext five years, and we’re poised to extend our business into adjacent states as well. Belis also pleased to offer two exclusive lines, the Mollai Collection and the Sara Collection,designed by the owners themselves. But the company’s 350 employees are the realdriving force behind Bel’s success. Each member of the Bel Furniture team is valued,respected and trained extensively. We take pride in investing in our staff and treatingthem like family.

Name ValueTrade Name EZ PawnHeadquartered Austin, TexasWebsite www.ezpawn.com# of Locations 363

DescriptionSince we were founded in 1974 in Austin, Texas, our goal has remained the same: tomake our customers’ lives easier. Today, at more than 400 pawn shops nationwide, wehelp hardworking, everyday people get quick access to cash and brand-namemerchandise by pawning or selling quality items. We take pride in making the processeasy.

LACK LANE Income & Expense Analysis | 09

INCOME CURRENT PRO FORMA

Effective Gross Income $409,614 $417,806

Less: Expenses $117,903 $120,260

Net Operating Income $291,711 $297,546

Annual Debt Service $238,453 $238,453

Debt Coverage Ratio 1.22 1.25

Cash Flow After Debt Service $53,258 $59,092

Principal Reduction $68,533 $68,533

Total Return 13.4 % $121,791 14.1 % $127,625

EXPENSES CURRENT PROFORMA

Real Estate Taxes $59,801 $60,997

Insurance $16,515 $16,845

Management Fee $16,385 $16,712

Repairs & Maintenance $14,936 $15,235

Landscaping $5,509 $5,619

Utilities $942 $961

Other Expenses $3,815 $3,891

Total Operating Expense $117,903 $120,260

Expense / SF $1.98 $2.02

% of EGI 28.78 % 28.78 %

REVENUE ALLOCATION

DISTRIBUTION OF EXPENSES

LACK LANE Multiyear Cash Flow Assumptions | 10

GLOBALSale Price $3,625,000

Analysis Period 10 year(s)

Commencement Date Jul. 1, 2019

Exit CAP Rate 8.00 %

INCOMEGross Potential Rent 2.00 %

EXPENSESReal Estate Taxes 2.00 %

Insurance 2.00 %

Repairs & Maintenance 2.00 %

Landscaping 2.00 %

Utilities 2.00 %

Other Expenses 2.00 %

PROPOSED FINANCINGLoan Type Fully Amortized

Down Payment $906,250

Loan Amount $2,718,750

Interest Rate 6.25 %

Annual Debt Service $238,453

Loan to Value 75 %

Amortization Period 20 Years

LACK LANE Cash Flow Analysis | 11

CASH FLOWCalendar Year CURRENT Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Gross Potential RevenueGross Rental Income $409,614 $417,806 $426,162 $434,685 $443,379 $452,247 $461,292 $470,517 $479,928 $489,526Gross Potential Income $409,614 $417,806 $426,162 $434,685 $443,379 $452,247 $461,292 $470,517 $479,928 $489,526Effective Gross Income $409,614 $417,806 $426,162 $434,685 $443,379 $452,247 $461,292 $470,517 $479,928 $489,526Operating ExpensesReal Estate Taxes $59,801 $60,997 $62,217 $63,461 $64,731 $66,025 $67,346 $68,693 $70,066 $71,468Insurance $16,515 $16,845 $17,182 $17,526 $17,876 $18,234 $18,598 $18,970 $19,350 $19,737Management Fee $16,385 $16,712 $17,046 $17,387 $17,735 $18,090 $18,452 $18,821 $19,197 $19,581Repairs & Maintenance $14,936 $15,235 $15,540 $15,850 $16,168 $16,491 $16,821 $17,157 $17,500 $17,850Landscaping $5,509 $5,619 $5,731 $5,846 $5,963 $6,082 $6,204 $6,328 $6,454 $6,584Utilities $942 $961 $980 $1,000 $1,020 $1,040 $1,061 $1,082 $1,104 $1,126Other Expenses $3,815 $3,891 $3,969 $4,048 $4,129 $4,212 $4,296 $4,382 $4,470 $4,559Total Operating Expense $117,903 $120,260 $122,665 $125,119 $127,621 $130,174 $132,777 $135,433 $138,141 $140,904Net Operating Income $291,711 $297,546 $303,497 $309,567 $315,758 $322,073 $328,515 $335,085 $341,787 $348,622Annual Debt Service $238,453 $238,453 $238,453 $238,453 $238,453 $238,453 $238,453 $238,453 $238,453 $238,453Cash Flow $53,258 $59,092 $65,043 $71,113 $77,305 $83,620 $90,061 $96,631 $103,333 $110,169

Effective Gross Income vs Operating Expenses Cash Flow

LACK LANE Cash Flow Analysis | 12

Calendar Year CURRENT Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Financial MetricsCash on Cash Return b/t 5.88 % 6.52 % 7.18 % 7.85 % 8.53 % 9.23 % 9.94 % 10.66 % 11.40 % 12.16 %CAP Rate 8.05 % 8.21 % 8.37 % 8.54 % 8.71 % 8.88 % 9.06 % 9.24 % 9.43 % 9.62 %Debt Coverage Ratio 1.22 1.25 1.27 1.30 1.32 1.35 1.38 1.41 1.43 1.46Operating Expense Ratio 28.78 % 28.78 % 28.78 % 28.78 % 28.78 % 28.78 % 28.78 % 28.78 % 28.78 % 28.78 %Gross Multiplier (GRM) 8.85 8.68 8.51 8.34 8.18 8.02 7.86 7.70 7.55 7.41Loan to Value 75.03 % 73.07 % 70.96 % 68.77 % 66.42 % 63.89 % 61.25 % 58.41 % 55.43 % 52.23 %Breakeven Ratio 87.00 % 85.86 % 84.74 % 83.64 % 82.56 % 81.51 % 80.48 % 79.46 % 78.47 % 77.49 %Price / SF $61.09 $61.09 $61.09 $61.09 $61.09 $61.09 $61.09 $61.09 $61.09 $61.09Expense / SF $1.98 $2.02 $2.06 $2.10 $2.15 $2.19 $2.23 $2.28 $2.32 $2.37Income / SF $6.90 $7.04 $7.18 $7.32 $7.47 $7.62 $7.77 $7.92 $8.08 $8.24

LACK LANE Disposition Sensitivity Analysis | 13

5 YEAR SENSITIVITY ANALYSISEXIT CAP RATE PROJECTED SALES

PRICESALES PRICE PSF PROCEEDS AFTER

LOAN PAYOFFIRR

7.00% $4,510,828 $76 $2,114,407 23.61%7.25% $4,355,282 $73 $1,958,861 21.95%7.50% $4,210,106 $71 $1,813,685 20.32%7.75% $4,074,296 $69 $1,677,875 18.70%8.00% $3,946,974 $67 $1,550,553 17.10%8.25% $3,827,369 $65 $1,430,948 15.50%8.50% $3,714,799 $63 $1,318,378 13.91%8.75% $3,608,662 $61 $1,212,241 12.32%9.00% $3,508,422 $59 $1,112,000 10.72%

10 YEAR SENSITIVITY ANALYSISEXIT CAP RATE PROJECTED SALES

PRICESALES PRICE PSF PROCEEDS AFTER

LOAN PAYOFFIRR

7.00% $4,980,318 $84 $2,868,012 17.49%7.25% $4,808,583 $81 $2,696,276 16.93%7.50% $4,648,297 $78 $2,535,990 16.38%7.75% $4,498,352 $76 $2,386,045 15.84%8.00% $4,357,779 $73 $2,245,472 15.31%8.25% $4,225,725 $71 $2,113,418 14.79%8.50% $4,101,439 $69 $1,989,132 14.28%8.75% $3,984,255 $67 $1,871,948 13.78%9.00% $3,873,581 $65 $1,761,274 13.29%

LACK LANE Demographics | 14

POPULATION 1 MILE 3 MILE 5 MILE

2000 Population 7,085 36,401 47,803

2010 Population 7,773 37,524 49,548

2018 Population 8,467 42,688 56,942

2023 Population 8,981 46,104 61,650

2018 African American 783 3,339 4,545

2018 American Indian 59 310 395

2018 Asian 153 1,016 1,351

2018 Hispanic 3,435 15,035 20,577

2018 White 6,364 32,690 43,134

2018 Other Race 837 3,945 5,637

2018 Multiracial 263 1,358 1,851

2018-2023: Population: Growth Rate 5.95 % 7.75 % 8.00 %

2018 HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE

less than $15,000 339 1,335 1,790

$15,000-$24,999 325 1,428 1,973

$25,000-$34,999 341 1,492 1,853

$35,000-$49,999 589 2,154 2,676

$50,000-$74,999 655 2,967 3,894

$75,000-$99,999 456 2,381 2,940

$100,000-$149,999 413 2,680 3,599

$150,000-$199,999 101 984 1,333

$200,000 or greater 64 659 1,031

Median HH Income $51,193 $61,338 $62,078

Average HH Income $65,042 $79,231 $81,884

HOUSEHOLDS 1 MILE 3 MILE 5 MILE

2000 Total Housing 3,156 14,684 19,002

2010 Total Households 3,009 14,084 18,294

2018 Total Households 3,282 16,081 21,090

2023 Total Households 3,483 17,417 22,893

2018 Average Household Size 2.57 2.64 2.69

2000 Owner Occupied Housing 1,326 8,197 10,957

2000 Renter Occupied Housing 1,363 5,050 6,234

2018 Owner Occupied Housing 1,413 9,259 12,520

2018 Renter Occupied Housing 1,869 6,822 8,570

2018 Vacant Housing 380 1,445 1,911

2018 Total Housing 3,662 17,526 23,001

2023 Owner Occupied Housing 1,548 10,212 13,847

2023 Renter Occupied Housing 1,935 7,205 9,046

2023 Vacant Housing 400 1,475 1,947

2023 Total Housing 3,883 18,892 24,840

2018-2023: Households: Growth Rate 6.00 % 8.05 % 8.25 %

Source: esri

LACK LANE Demographic Charts | 15

1 Mile Radius 3 Mile Radius 5 Mile Radius

2018 Household Income

1 Mile Radius 3 Mile Radius 5 Mile Radius

2018 Population by Race

LACK LANE Demographic Charts | 16

2018 Household Occupancy - 1 Mile Radius

Average Income Median Income

2018 Household Income Average and Median

LACK LANE

CONFIDENTIALITY and DISCLAIMERThe information contained in the following offering memorandum is proprietary and strictlyconfidential. It is intended to be reviewed only by the party receiving it from VandaveerCommercial and it should not be made available to any other person or entity without the writtenconsent of Vandaveer Commercial.

By taking possession of and reviewing the information contained herein the recipient agrees tohold and treat all such information in the strictest confidence. The recipient further agrees thatrecipient will not photocopy or duplicate any part of the offering memorandum. If you have nointerest in the subject property, please promptly return this offering memorandum to VandaveerCommercial. This offering memorandum has been prepared to provide summary, unverifiedfinancial and physical information to prospective purchasers, and to establish only a preliminarylevel of interest in the subject property.

The information contained herein is not a substitute for a thorough due diligence investigation.Vandaveer Commercial has not made any investigation, and makes no warranty orrepresentation with respect to the income or expenses for the subject property, the futureprojected financial performance of the property, the size and square footage of the property andimprovements, the presence or absence of contaminating substances, PCBs or asbestos, thecompliance with local, state and federal regulations, the physical condition of the improvementsthereon, or financial condition or business prospects of any tenant, or any tenant’s plans orintentions to continue its occupancy of the subject property.

The information contained in this offering memorandum has been obtained from sources webelieve reliable; however, Vandaveer Commercial has not verified, and will not verify, any of theinformation contained herein, nor has Vandaveer Commercial conducted any investigationregarding these matters and makes no warranty or representation whatsoever regarding theaccuracy or completeness of the information provided. All potential buyers must take appropriatemeasures to verify all of the information set forth herein. Prospective buyers shall be responsiblefor their costs and expenses of investigating the subject property.

Exclusively Marketed by:

Mike Vandaveer Mark McCrummenBroker - Owner Licensed Agent(713) 725-0416 (713) 557-9149License # 470226 License # 701796mike@VandaveerCommercial.com mark@VandaveerCommercial.com

powered by CREOP