little york c-store shell & burger king · overview david fisher, ccim and marcus &...

$3,300,000

5.56 GPM

10.25% OAR

18.70% Cash/Cash

LITTLE YORK C-STORE SHELL & BURGER KING

Offering Memorandum

[email protected]

11840 W. Little York Rd., Houston, TX 77041

2

WEST LITTLE YORK C-STORE SHELL

Offering Memorandum

David B. Fisher, CCIMFuel & Convenience Center Investments

D. (832) 442-2828C. (936) 320-3737

[email protected]

License TX: 691654Activity ID: Z0860097

1450 Lake Robbins Drive, Suite 300The Woodlands, TX 77380

11840 W. Little York Rd.Houston, TX 77041

Note: This offering is one of Seven (7) newly constructed fuel/convenience center investmentsthat can be acquired separate or as a portfolio sale. Please contact listing broker for portfolioinformation.

INVESTMENT SUMMARY…Location Summary

Investment Overview

FINANCIAL ANALYSIS…

Financial Summary

REGIONAL MAP…Regional Location

Site Map

MARKET OVERVIEW…Branded Franchise

Comparable Sales

Market Overview

Demographic Analysis

TABLE OF CONTENTS

6,804 SF| NET INTERIOR AREA |

04

05

09

11

12

13

15

20

26


S U B J EC T

32,700 APD

4

OFFERING SUMMARY

CHARLOTTE NNN

LOCATION SUMMARY


- 4 -

1-Mile• 429 Industrial Buildings• 15,000,000± SF Ind.• 6,500 Day Employment• 32,700 APD

OVERVIEW

David Fisher, CCIM and Marcus & Millichap have been retained on an exclusive basis and is pleased topresent the opportunity to acquire a Shell fuel and Roadster convenience center with Burger King as theadjacent QSR under a new 10-year lease. The property is located at 11840 West Little York Road, Houston,TX 77041. APN: 0382-740-000-124 (“Property”.) Constructed in 2018 as a next generation, upscaleconvenience store with branded fuel and fast food its improvements consist of a convenience center ofapproximately 4,200 SF and the adjacent space of approximately 2,600 SF is leased to Burger Kingfranchisee. The primary fuel canopy is 3,000 SF is of exceptional design and new construction.

The convenience store features Six (6) MPD’s with Twelve (12) fueling positions, diesel hoses and “dive-in”configuration, 15’ high ceilings, high profile design, modern amenities, service and fixtures. separate gasand diesel stations, modern designed convenience store with 15’ high Included in the purchase are twonational franchise brands, Shell and Burger King in addition to an off-site beer and wine license.

The investment includes Three (3) profit centers that will generate continuous profit for the new owneroperator. The property consists of approximately 61,400± sf of land (1.41± acres), the marquee signstands over 35’ high and is visible from over a half mile east or west of the site by over 38,000 travelers onWest Little York Road each and every day. The site is located 1-mile from Beltway 8, a major arterialroadway that circles downtown Houston connecting many communities north, south, east and west.

This exceptional opportunity is a result of the owner’s many years of experience developing, opening andstabilizing successful fuel and convenience center projects. Shell Roadster was specifically designed andtargeted toward the 5,800 employees, local commuters and neighborhood community whom live, orwork within a 1-mile radius of the site.

Frequent visitors have come to expect a place to sit, relax and enjoy quality food and competitively pricedfuel in a clean and safe environment. When traveling on West Little York, travelers can clearly see that thecenter is a well-lit facility environment with strong physical appearance characteristics and brandrecognition that maximizes the capture of residents.

OFFERING SUMMARY

CHARLOTTE NNN

INVESTMENT OVERVIEW


- 5 -

OFFERING SUMMARY

CHARLOTTE NNN

INVESTMENT OVERVIEW


MINI-MART

The convenience store includes a Roadster Mini-Mart with an off-site beer andwine sales license, and a Burger King that is leased to the nation’s largestBurger King franchisee and serves as the quick service restaurant (QSR).

The building envelope is approximately 6,804± square feet and has stucco oversteel frame construction over a concrete foundation and slab floor. The roofcover is buildup composition. The interior ceiling has a 15± feet elevationabove slab with the top of the roof deck being 17± feet above grade. Thebuilding contains a four-foot high parapet extending the facing walls to a 21±foot elevation above grade. The building also contains a convenient vehicledrive-through for the Burger King restaurant.

DISPENSER CANOPIES

The facility contains a single fuel canopy containing 3,000± squarefeet of area. The canopy is lighted and has metal frame constructionsupported by metal poles with attractive brick façade. The canopycovers Six (6) double-sided fuel dispensers (12 fueling stations)offering customers four grades of gasoline (regular, midgrade,premium and diesel) with “dive in” configuration.

- 6 -

OFFERING SUMMARY

CHARLOTTE NNN

INVESTMENT OVERVIEW


UNDERGROUND FUEL TANKS

The property contains one (1) underground fuel tank with leak monitor systems, containment basins and related safety and EPArequired improvements, which were all installed new in 2018. The underground tank installation conforms to 2018 governmentrequirements and has a combined 32,000-gallon gasoline/diesel capacity.

The gasoline tank is partitioned into four compartments providing regular, midgrade, premium and diesel grades of gasoline. The tankis designed with double wall, fiber-coated metal construction

YARD IMPROVEMENTS

The site has a concrete surface throughout including the fuel canopy areas and above the underground tank areas. The site has 10 upfront automobile parking spaces in addition to two handicapped spaces.

• Trash enclosure.

• Air and water station.

• 35-foot high monument sign.

• Drive-through service lane supporting Burger King restaurant operations that includes signage and

intercoms.

- 7 -

OFFERING SUMMARY

CHARLOTTE NNN

INVESTMENT OVERVIEW


FEATURES

• Expansive merchandise display with the cashier counter locatedtoward the front of the floor area with ample unrestricted space forcustomer movement.

• Burger King restaurant has convenient interior connection fromRoadster’s C-Store, and ample tables and chairs with drive-throughservice.

• Spacious top rated stainless-steel walk-in coolers with 18 reach-inshelves serving the convenience store.

• Labor conscious gravity flow with auto re-stock-dispensing shelvesbehind each cooler door.

• Separate men’s and women’s restrooms with extensive upscale designthat exemplify the owner’s commitment to quality in design detailsand construction.

• Large stainless-steel walk-in freezer.

• Climate controlled “door ajar” alert system in walk-in cooler & freezer.

• Dry storage area and large private office.

- 8 -

OFFERING SUMMARY

CHARLOTTE NNN

FINANCIAL SUMMARY


- 9 -

Notes: a. Operating expenses are estimated at 50% for initial year operations (2018) and have

been deducted from Gross Profits to arrive at a reasonable NOI. b. Gross profits are based on actual day/month numbers and utilize IMST report for

remainder 12-months.c. COGS estimated at 65% and have been deducted from Gross Profits to arrive at NOI.

Summary Operating Data

Price $3,300,000

Down

Payment$1,013,100 31% Revenue Year 1 Year 2

Number of Suites 4 Actual & IMST Gross Profit $574,440 $600,156

Price Per SqFt $528.00 Total Reimbursement Income 3.2% $18,150 3.0% $18,150

Gross Leasable Area

(GLA)6,804 SF

Lot Size 1.41 Acres Gross Profit $592,590 $618,306

Year Built/Renovated 43221

Occupancy 100.00%

Less: Operating Expenses

(GOE) 42.9% ($254,360) 41.5% ($256,491)

Net Operating Income $338,230 $361,815

Returns Year 1 Year 2

OAR Rate 10.25% 10.96%

Cash-on-Cash 18.70% 21.03%

Debt Coverage Ratio 2.27 2.43 Cash Flow $338,230 $361,815

Debt Service ($148,807) ($148,807)

Financing 1st LoanNet Cash Flow After Debt

Service 18.70% $189,423 21.03% $213,008

Loan Amount $2,310,000 Principal Reduction $34,081 $35,825

Loan Type New Total Return 22.06% $223,504 24.56% $248,833

Interest Rate 5.00%

Amortization 30 Years Operating Expenses Year 1 Year 2

Year Due 2028 GOE (Page 10) $183,820 $185,658

Insurance $14,140 $14,281

Real Estate Taxes $41,250 $41,250

Management Fee $15,150 $15,302

Total Expenses $254,360 $256,491

Expenses/SF $40.70 $41.04

First full month was June 2018 @ 65,000 gal pmIMST Report: Fuel Est (18-mth) @ $110,000Inside Sales: $60,000 pmIMST Report: Inside Sales (18-mth) @ $90,000 pmBK Lease Income $5,000 NN

OFFERING SUMMARY

CHARLOTTE NNN

FINANCIAL SUMMARY


- 10 -

Growth Rates:

Year 1 Year 2

1.0% 1.0%

Expenses Current Year 1 Year 2

Gen

era

l O

pera

tin

g E

xp

en

ses (

GO

E)

Utilities $30,000 $30,300 $30,603

Alarm Security $1,200 $1,212 $1,224

Cleaning & Maintenance $3,500 $3,535 $3,570

Communication $3,000 $3,030 $3,060

CC Charges (Jobber - incl. proc fees & equip) $0 $0 $0

Payroll (Incl SUTA, 940, 941 taxes) $135,000 $136,350 $137,714

Professional Fees (CPA) $3,600 $3,636 $3,672

License & Misc. $1,200 $1,212 $1,224

Franchise Fee $0 $0 $0

Supplies $4,500 $4,545 $4,590

Insurance $14,000 $14,140 $14,281

Real Estate Taxes $15,000 $41,250 $41,250

Management Fee $15,000 $15,150 $15,302

Total Expenses $226,000 $254,360 $256,491

OFFERING SUMMARY

CHARLOTTE NNN

FINANCIAL SUMMARY


- 11 -

PROPERTY PRICE SIZE SF $PSF GP NOI GPM E-GPMElla Blvd $ 5,200,000 3.32 5,000 $ 1,040 $ 1,317,000 $ 982,250 3.95 3.74 S. Sam Houston Parkway $ 4,724,308 1.34 5,700 $ 829 $ 719,515 $ 421,511 6.57 6.57 W. Belfort Street $ 4,276,557 1 9,400 $ 455 $ 619,584 $ 349,741 6.90 5.44 Wayforest Drive $ 4,000,000 2 6,500 $ 615 $ 914,304 $ 666,562 4.37 4.06 S. Palacios Street $ 4,750,000 2.2 6,500 $ 731 $ 1,224,600 $ 878,087 3.88 3.88 Almeda Genoa Road $ 4,250,000 3.5 6,200 $ 685 $ 817,644 $ 522,513 5.20 4.78 W. Little York Road $ 3,300,000 1.42 6,804 $ 485 $ 514,458 $ 283,933 6.41 5.56 Total (Fuel & C-Store Only) $ 30,500,865 14.78 46,104 $ 662 $ 6,127,105 $ 4,104,597 4.98 4.69

PROPERTY OAR / CAP GAS GPY DIESEL GPY INSIDE 12 MTH QSR 12 mth *OTHER Income OE 12 mth OE%/ GPElla Blvd 18.89% 1,200,000 - $ 2,100,000 $ 300,000 $ 72,000 $ 345,780 26%S. Sam Houston Parkway 8.92% 973,455 240,000 $ 730,000 $ 608,000 $ - $ 318,372 44%W. Belfort Street 8.18% 1,020,000 - $ 1,140,000 $ - $ 124,548 $ 332,217 54%Wayforest Drive 16.66% 824,100 - $ 1,675,668 $ 326,016 $ 72,000 $ 330,780 36%S. Palacios Street 18.49% 660,000 1,740,000 $ 840,000 $ 780,000 $ - $ 360,155 29%Almeda Genoa Road 12.29% 912,000 414,996 $ 1,155,264 $ 250,000 $ 72,000 $ 331,885 41%W. Little York Road 8.60% 1,147,548 104,376 $ 1,022,760 $ 60,000 $ 18,150 $ 254,360 49%Total (Fuel & C-Stoe Only) 12.64% 6,737,103 2,499,372 $ 8,663,692 $ 2,324,016 $ 358,698 $ 2,019,189 33%Total (Fuel, C-Store & Other) 14.15%

OFFERING SUMMARY

CHARLOTTE NNN

FINANCIAL SUMMARY


- 12 -

Operating Expenses Ella Blvd S. Sam Houston W. Belfort Wayforest S. Palacios Almeda Genoa Little York TotalsUtilities $ 48,480 40400 48,480 $ 48,480 $ 48,480 $ 48,480 $ 30,000 $ 312,800 Alarm Security $ 1,212 1212 1,212 $ 1,212 $ 1,212 $ 1,212 $ 1,200 $ 8,472 Cleaning Maint (parking) $ 3,535 3535 3,535 $ 3,535 $ 3,535 $ 3,535 $ 3,500 $ 24,710 Communication $ 3,030 3030 3,030 $ 3,030 $ 3,030 $ 3,030 $ 3,000 $ 21,180 CC Charges (Jobber - 100%) $ - 0 - $ - $ - $ - $ - $ -Payroll (taxes 100% 940-941) $ 181,800 171700 181,800 $ 181,800 $ 201,800 $ 181,800 $ 135,000 $ 1,235,700 Prof fees (CPA & Legal) $ 3,636 3636 3,636 $ 3,636 $ 3,636 $ 3,636 $ 3,600 $ 25,416 License & Misc $ 1,212 758 1,212 $ 1,212 $ 1,212 $ 1,212 $ 1,200 $ 8,018 Franchise Fee $ - 1212 - $ - $ - $ - $ - $ 1,212 Supplies $ 4,545 4545 4,545 $ 4,545 $ 4,545 $ 4,545 $ 4,500 $ 31,770 Insurance $ 18,180 14140 16,160 $ 18,180 $ 18,180 $ 16,160 $ 14,000 $ 115,000 Real Estate Taxes (new) $ 65,000 59054 53,457 $ 50,000 $ 59,375 $ 53,125 $ 41,250 $ 381,261 Management Fee $ 15,150 15150 15,150 $ 15,150 $ 15,150 $ 15,150 $ 15,000 $ 105,900 Total OE $ 345,780 318372 332,217 $ 330,780 $ 360,155 $ 331,885 $ 252,250 $ 2,271,439

Gross Profit $ 1,317,000 $ 719,515 $ 619,584 $ 914,304 $ 1,224,600 $ 817,644 $ 514,458 $ 5,612,647 NOI $ 971,220 $ 401,143 $ 287,367 $ 583,524 $ 864,445 $ 485,759 $ 262,208 $ 3,855,666 Expense Reimbursement $ 42,383 $ 18,150 $ 42,383 Other Income (RE Lease) $ 72,000 $ - 124,548 $ 72,000 $ - $ 72,000 $ 60,000 $ 340,548 Effective NOI $ 1,043,220 $ 401,143 454,298 $ 655,524 $ 864,445 $ 557,759 $ 340,358 $ 4,316,747

REGIONAL MAP

SHELL - LITTLE YORK RD

13

AERIAL PHOTO


14

GLOBAL NATIONAL BRANDING

#


o Burger King (BK) is an American global chain of hamburger fast food restaurants. Headquartered in the unincorporated area of Miami-Dade County, Florida, the company was founded in 1953 as Insta-Burger King, a Jacksonville, Florida-based restaurant chain.

o As of September 30, 2016, Burger King reported it had 15,243 outlets in 100 countries. Of these, nearly half are located in the United States, and 99.5% are privately owned and operated with its new owners moving to an almost entirely franchised model in 2013.

o At the end of 2014, Burger King ranked 4th among US food chains in terms of US sales, behind McDonald’s, Starbucks, and Subway. Burger King now has over 12,000 stores worldwide.]

o Shell Oil Company is the United States-based wholly owned subsidiary of Royal Dutch Shell, transnational corporation "oil major" of Anglo-Dutch origins, which is amongst the largest oil companies in the world.

o Approximately 22,000 Shell employees are based in the U.S. The U.S. headquarters are in Houston, Texas. Shell Oil Company, including its consolidated companies and its share in equity companies, is one of America's largest oil and natural gas producers, natural gas marketers, gasoline marketers and petrochemical manufacturers.

o Shell is the market leader through approximately 25,000 Shell-branded gas stations in the U.S. which also serve as Shell's most visible public presence.

- 15 -

https://en.wikipedia.org/wiki/Hamburger

https://en.wikipedia.org/wiki/Burger_King#cite_note-83

MARKET

COMPARABLESCOMPARABLES

OFFERING SUMMARY

CHARLOTTE NNN

HOUSTON

#


- 16 -

SALE COMPARABLES MAP

CHEVRON C-STORE ELLA BLVD

11840 W. Little York Rd.

(SUBJECT)

7-11 Frisco, TX

7-11 Valley Ridge

Gas & C-Store

Shell

Valero

Chevron

Chevron

Shell

SALES COMPARABLES

1

2

3

4

5

23

45

- 17 -

6

7

8

6

7

8

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


PROPERTY NAME

MARKETING TEAMSALES COMPARABLES

#


SALES COMPARABLES

Annual Per SF

Net Revenue (C-Store) $278,230 $103.04

Burger King Lease $60,000 $15.00

Occupancy 100.0%

Tenants Lease Type

Asking Price: $3,300,000 Franchisee 10-Year NN

Price/SF: $485.00

OAR (Cap) Rate: 10.25%

Year Built: 2018

SHELL C-STORE & BURGER KING11840 W. Little York Rd., Houston, TX, 77041

1

Annual Per SF

NOI $280,000 $94.59

NOTES

Did not include the business operation. Sold with 7-11 corp.

guarantee

Tenants Lease Type

Close Of

Escrow:8/24/2017

Sales Price: $5,600,000

Price/SF: $1,891.89

CAP Rate: 5.00%

Year Built: 2001

7-11 FRISCO, TX4609 Coit Rd, Frisco, TX, 75035

2

NOTES

Net leased investment with 7-11 corp guarantee. Did not include the

business operations.

Close Of Escrow 12/30/2016

Days On Market 114

Sales Price $3,100,000

Price/SF $1,033.33

CAP Rate 4.72%

GLA 3,000 SF

Year Built 1998

7-11 VALLEY RIDGE900 Valley Ridge Blvd, Lewisville, TX, 75077

- 18 -

PROPERTY NAME

#


rentpropertyname1


rentpropertyname1


rentpropertyname1


SALES COMPARABLES

3

NOTES

Net leased investment did not include the business operations. 7-11 corp.

guaranteed.



Price/SF $944.82

CAP Rate 6.40%

GLA 2,997 SF

Lot Size 1.15 acre(s)

Year Built 2002

GAS & C-STORE721 E Fm 544, Murphy, TX, 75094

4

NOTES

Net leased investment did not include the business opportunity and came

with a corp guarantee.



Price/SF $1,456.81

CAP Rate 6.00%

GLA 1,686 SF

Lot Size .57 acre(s)

Year Built 1983

SHELL1946 N Interstate 35E, Carrollton, TX, 75006

5

NOTES

Business was included in the purchase price.

Tenants Lease Type

Close Of

Escrow:10/31/2017

Days On

Market:90


Price/SF: $909.70

Year Built: 1974

VALERO1300 E Long Ave, Fort Worth, TX, 76106

- 19 -

SALES COMPARABLES

#

PROPERTY NAMEWEST LITTLE YORK C-STORE SHELL

rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1

SALES COMPARABLES

6

NOTES

Will include the business operations.

Close Of Escrow Under Contract


Price/SF $600.00

CAP Rate

GLA 5,000 SF


Year Built 2019

CHEVRON & C-STORE400 Hesters Crossing Rd., Round Rock, TX 78681

7

NOTES

Net leased investment did not include the business opportunity and came

with a corp guarantee (Stripes).



Price/SF $840.51

CAP Rate 6.40%

GLA 4,991 SF


Year Built 2008

CHEVRON708 N US Hwy 77-Stripes, Schulenburg, TX 78956

8

NOTES

Business was included in the purchase price. Corporate user.

Tenants Lease Type

Close Of

Escrow:3/27/2017

Days On

Market:90


Price/SF: $520.83

Year Built: 2004

SHELL13420 State Highway 249 – Shell, Houston, TX 77086

- 20 -

SALES COMPARABLES

SALE COMPARABLES

#


Avg. 5.53%

0.0

0.9

1.8

2.7

3.6

4.5

5.4

6.3

7.2

8.1

9.0

ChevronC-Store Sam

HoustonPkwy

7-11Frisco, TX

7-11 ValleyRidge

Gas &C-Store

Shell Valero

*Average Cap Rate

Avg. $1,247.31

$0.00

$200.00

$400.00

$600.00

$800.00

$1,000.00

$1,200.00

$1,400.00

$1,600.00

$1,800.00

$2,000.00

ChevronC-Store Sam

HoustonPkwy

7-11Frisco, TX

7-11 ValleyRidge

Gas &C-Store

Shell Valero

Average Price Per Square Foot

SubjectW. Little York Rd.

SALES COMPARABLES SALES COMPS AVG

- 21 -

*Note: Subject site depicts an Overall Rate (OAR) and is therefore significantly higher than four of the comparable properties due to the subject including the business operation interests as opposed to a true net-leased asset backed by a corporate guarantee i.e., Houston Foods Inc. (One of the largest Burger King franchiees in the US.)

Houston Foods Inc. has a 30-day First Right of Refusal to match any offer made for the acquisition of the subject investment.

Valero was acquired as an owner/operator investment and did not provide the Cap rate but did establish a cost psf.

SubjectW. Little York Rd.

MARKET

OVERVIEW

MARKET OVERVIEW

#


- 22 -

Hobby Airport

HOUSTONOVERVIEW

1

As the fifth most populous metro area in the U.S., Houston houses

nearly 6.9 million people in southeastern Texas. The market is

composed of nine counties: Harris, Galveston, Brazoria, Fort Bend,

Chambers, Montgomery, Austin, Liberty and Waller. The Gulf of

Mexico, which borders the metro to the southeast, provides access to

markets around the world via the Port of Houston, making it a prime

location for exports. Local industries have diversified from oil to

technology and healthcare. Many companies provide goods and

services for the large population growth, which has sprawled, primarily

to the north and west. The city of Houston is the largest in the metro

with 2.3 million residents.

METRO HIGHLIGHTS

CORPORATE GROWTH

Houston will remain a top destination for corporate

relocations due to its business-friendly environment.

Twenty Fortune 500 companies are headquartered

in the metro.

HIGHER EDUCATION

Over 40 post-secondary educational institutions are

located in the metro. Nearly 30 percent of residents

have attained a bachelor’s degree, with 11 percent

also holding a graduate or professional degree.

LOW COST OF LIVING, DOING BUSINESS

Houston has a lower cost of living than many major

metros, no state income tax and a median home

price below the national level.

MARKET OVERVIEW

#


- 23 -

1

MARKET OVERVIEW

#


ECONOMY▪ The economy is diversifying to include biotechnology, distribution, nanotechnology and

logistics; the metro is the center of the energy production with roughly 260,000 workers.

▪ Local product manufacturing is a large segment of the economy and includes paper,

electrical and electronic machinery, iron, steel and petrochemicals.

▪ Healthcare is gaining economic prominence. Specialized medical education and training

institutions boost the local economy and supply a growing hospital system.

▪ The Port of Houston is one of the country’s busiest for exports, supplying thousands of jobs

and generating billions of dollars in revenue.

SHARE OF 2017 TOTAL EMPLOYMENT

MAJOR AREA EMPLOYERS

Memorial Hermann Healthcare System

University of Texas

The Kroger Co.

Exxon Mobil Corp.

Shell Oil Co.

Houston Methodist

United Continental Holdings

Baker Hughes Inc.

CHI St. Luke’s Health

Hewlett Packard Enterprise* Forecast

MANUFACTURING8%

GOVERNMENT

HEALTH SERVICES

EDUCATION AND

OTHER SERVICES AND MINING

+NATURAL RESOURCES

3%

LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES

20%

AND UTILITIES

TRADE, TRANSPORTATION CONSTRUCTION

PROFESSIONAL AND

BUSINESS SERVICES

4%INFORMATION AND

16%

7%

14% 10% 5%

13%

- 24 -

1

MARKET OVERVIEW

#


DEMOGRAPHICS

▪ The Houston metro is expected to add 506,600 people through 2022 and roughly

111,500 of these residents will be millennials in the 20- to 34-year-old cohort.

▪ During the same period, nearly 229,500 households will be formed, generating

demand for housing.

▪ The homeownership rate of 61 percent is below the national rate of 64 percent. The

median home price of $247,200 is also below that the U.S.

Outdoor activities abound in Houston as a result of the city’s favorable location and climate.

More than a dozen state parks and recreation areas lie within a short drive of Houston, as

well as more than 500 parks and open spaces and various cultural venues and museums.

Johnson Space Center is a popular tourist and educational destination. The metro is also

known internationally for its medical community and is home to the Texas Medical Center,

the largest of its kind in the world. Houston is home to four professional sports teams: the

Houston Texans, the Houston Astros, the Houston Rockets and the Houston Dynamo.

* Forecast

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s

Analytics; U.S. Census Bureau

QUALITY OF LIFE

2017 Population by Age

0-4 YEARS

7%5-19 YEARS

22%20-24 YEARS

7%25-44 YEARS

29%45-64 YEARS

24%65+ YEARS

10%

SPORTS

EDUCATION

ARTS & ENTERTAINMENT

34.1

2017MEDIAN AGE:

U.S. Median:

37.8

$60,300

2017 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

$56,300

6.9M

2017POPULATION:

Growth2017-2022*:

7.4%

2.4M

2017HOUSEHOLDS:

9.6%

Growth2017-2022*:

- 25 -

1

MARKET OVERVIEW

#


HOUSTON METRO AREAPost-Hurricane Recovery Boosts Retail

Spending, Draws Investors

Local residents rebuilding after floods, sales rise. Economic growth is returning to Houston as the metro

emerges from the damage created by Hurricane Harvey and struggles stemming from the decline in energy

prices in previous years. In 2018, job additions will rise, with local organizations creating more positions than

the previous three years combined. Strengthening employment and recovery efforts related to the hurricane

will provide an additional boost to retail consumption this year, and retail sales are expected to rise faster than

the national pace. Local households replacing goods lost during the flooding will help lift spending, while

residents temporarily relocating to assist with rebuilding efforts raise sales at restaurants, grocery stores and

other needs-based retailers. As a result, retailers continue to expand in the metro this year, and grocers such

as Kroger and H-E-B will open multiple locations on the west and north sides of Houston. Fitness centers,

dollar stores, plus numerous restaurant and entertainment options will open this year, helping keep vacancy

60 basis points below the 10-year average.

Development in West Houston attracts investors. The increasingly diverse population propelled the Houston

retail segment in recent years, keeping buyers interested in the local market. The metro is poised for an

increase in trading volume this year, however, as staffing in the oil and gas industry has stabilized and new

opportunities are presented in western submarkets. This side of the metro will receive an influx of new

properties as development continues along the Grand Parkway. Grocery-anchored retail centers are in high

demand, often trading in the mid-6 percent area. Meanwhile, strip-center assets with service-oriented tenants

pique buyer interest, often changing hands in the low-7 percent span. Properties in West Houston submarkets

such as Katy, Sugar Land out toward the Grand Parkway, and up to The Woodlands will draw strong buyer

demand this year.

* Forecast

Sources: Marcus & Millichap Research Services; BLS; CoStar Group, Inc.

- 26 -

1

MARKET OVERVIEW

#


HOUSTON METRO AREA

2018 Market Forecast

Higher vacancy than a large share of markets plus slow rent gains pull

Houston down four spots this year.

Employers will create 75,000 positions in 2018 following the addition of

45,000 jobs in 2017.

Delivery volume slows after the completion of nearly 5.6 million square feet

in 2017. Sugar Land and Conroe each welcome more than 400,000 square

feet of new supply in 2018.

Vacancy rises for a second year, reaching 6.0 percent in 2018 as 2 million

square feet of retail space is absorbed.

The average asking rent advances to $17.12 per square foot, increasing for

a second consecutive year.

Retail assets in heavily flooded areas of Houston could be value-add targets

this year. Owners in these locales may choose to dispose of properties in

lieu of renovating, while others may divest as some tenants are unable to

reopen stores.

* Forecast

Sources: Marcus & Millichap Research Services; CoStar Group, Inc.;

Real Capital Analytics

NRI Rank

30, down 4 places

Employment

up 2.5%

Construction

2.9 million sq. ft.

Vacancy

up 20 bps

Rent

up 1.5%

Investment

- 27 -

PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

Source: © 2017 Experian

Created on June 2018

POPULATION 1 Miles 3 Miles 5 Miles

▪ 2022 Projection

Total Population 9,054 78,120 298,976

▪ 2017 Estimate


▪ 2010 Census


▪ 2000 Census


▪ Current Daytime Population

2017 Estimate 12,427 98,704 267,344

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

▪ 2022 Projection

Total Households 2,917 28,012 105,907

▪ 2017 Estimate


Average (Mean) Household Size 3.11 2.81 2.85

▪ 2010 Census


▪ 2000 Census

Total Households 638 18,240 68,513

▪ Occupied Units

2022 Projection 2,917 28,012 105,907

2017 Estimate 2,247 25,290 99,912

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

▪ 2017 Estimate

$150,000 or More 36.52% 17.25% 12.15%

$100,000 - $149,000 15.92% 14.91% 14.87%

$75,000 - $99,999 13.44% 13.60% 13.02%

$50,000 - $74,999 13.44% 18.63% 19.45%

$35,000 - $49,999 7.73% 12.86% 14.20%

Under $35,000 12.97% 22.76% 26.29%

Average Household Income $160,546 $101,692 $86,846

Median Household Income $105,640 $68,535 $61,568

Per Capita Income $50,828 $35,854 $30,136

HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 MilesTotal Average Household Retail Expenditure

$88,026 $74,467 $70,452

▪ Consumer Expenditure Top 10 Categories

Housing $22,053 $19,146 $18,244

Transportation $18,540 $15,296 $14,476

Shelter $11,685 $10,184 $9,726

Food $9,957 $8,359 $7,834

Personal Insurance and Pensions $9,387 $7,305 $6,641

Health Care $5,980 $4,976 $4,645

Utilities $5,315 $4,687 $4,483

Entertainment $3,449 $2,842 $2,636

Household Furnishings and Equipment

$2,714 $2,257 $2,112

Cash Contributions $2,537 $2,009 $1,807

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

▪ Population By Age

2017 Estimate Total Population 7,059 69,555 276,810

Under 20 32.34% 28.21% 29.30%

20 to 34 Years 15.72% 21.16% 22.44%

35 to 39 Years 7.43% 6.93% 7.12%

40 to 49 Years 16.51% 14.33% 13.97%

50 to 64 Years 19.13% 20.37% 18.50%

Age 65+ 8.86% 9.01% 8.70%

Median Age 36.39 35.46 33.84

▪ Population 25+ by Education Level

2017 Estimate Population Age 25+ 4,441 45,356 176,330

Elementary (0-8) 4.38% 4.35% 5.88%

Some High School (9-11) 5.61% 6.46% 7.52%

High School Graduate (12) 14.70% 23.71% 25.09%

Some College (13-15) 16.31% 21.24% 22.90%

Associate Degree Only 5.87% 6.76% 6.11%

Bachelors Degree Only 32.68% 23.70% 21.51%

Graduate Degree 18.72% 11.73% 9.09%

28

Income

In 2017, the median household income for your selected geography is

$105,640, compare this to the US average which is currently $56,286.

The median household income for your area has changed by 108.37%

since 2000. It is estimated that the median household income in your

area will be $120,734 five years from now, which represents a change

of 14.29% from the current year.

The current year per capita income in your area is $50,828, compare

this to the US average, which is $30,982. The current year average

household income in your area is $160,546, compare this to the US

average which is $81,217.

Population

In 2017, the population in your selected geography is 7,059. The

population has changed by 223.96% since 2000. It is estimated that

the population in your area will be 9,054.00 five years from now, which

represents a change of 28.26% from the current year. The current

population is 50.51% male and 49.49% female. The median age of the

population in your area is 36.39, compare this to the US average

which is 37.83. The population density in your area is 2,248.57 people

per square mile.

Households

There are currently 2,235 households in your selected geography. The

number of households has changed by 250.31% since 2000. It is

estimated that the number of households in your area will be 2,917

five years from now, which represents a change of 30.51% from the

current year. The average household size in your area is 3.11

persons.

Employment

In 2017, there are 8,927 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

59.69% of employees are employed in white-collar occupations in this

geography, and 38.25% are employed in blue-collar occupations. In

2017, unemployment in this area is 4.82%. In 2000, the average time

traveled to work was 32.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:

50.75% White, 5.95% Black, 0.03% Native American and 29.99%

Asian/Pacific Islander. Compare these to US averages which are:

70.42% White, 12.85% Black, 0.19% Native American and 5.53%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 27.15% of the current year

population in your selected area. Compare this to the US average of

17.88%.

PROPERTY NAME

MARKETING TEAM


Housing

The median housing value in your area was $315,254 in 2017,

compare this to the US average of $193,953. In 2000, there were 553

owner occupied housing units in your area and there were 85 renter

occupied housing units in your area. The median rent at the time was

$507.

Source: © 2017 Experian

DEMOGRAPHICS

29

Confidentiality and DisclaimerThe 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 andshould 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, unverifiedinformation 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 duediligence 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 futureprojected 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, thecompliance 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 orintentions 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 orrepresentation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forthherein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. Â© 2017 Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & 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 isnot 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, orcommercial 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 YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

8 Acres, Houston, TXACT ID Z0860090

- 30 -

TEXAS BROKERAGE | SERVICES FORM

INFORMATION ABOUT BROKERAGE SERVICESTexas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

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;

- 31 -

Information available at www.trec.texas.govRegulated by the Texas Real Estate Commission

IABS 1-0

Marcus & Millichap 9002994 [email protected] 972-755-5200Licensed Broker /Broker Firm Name or Primary Assumed Business Name License No. Email Phone

Tim A. Speck 432723 [email protected] 972-755-5200Designated Broker of Firm License No. Email Phone

David Luther 599555 [email protected] 713-452-4200Licensed Supervisor of Sales Agent/Associate License No. Email Phone

David Fisher 691654 [email protected] 832-442-2828

▪ 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:• that the owner will accept a price less than the written asking price;• that the buyer/tenant will pay a price greater than the price submitted in a written offer; and• any confidential information or any other information that a party specifically instructs the broker in 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 subagentcan 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.

____________/____________/____________/____________ __________Buyer / Tenant / Seller / Landlord Initials Date

- 32 -

www.MarcusMillichap.com

David Fisher, CCIM

Fuel | Convenience Center Investments

Tel: (832) 442-2828

Cel: (936) 320-3737

Marcus & Millichap

1450 Lake Robbins Rd. Suite 300

The Woodlands, TX 77380

[email protected]

Licenses: CA 691654, TX 691654

P R E S E N T E D B Y

little york c-store shell & burger king · overview david fisher, ccim and marcus &...

Documents