pizza hut 10-year single tenant absolute nnn lease investment · 2018-05-03 · tenant building...

Presented by Shireen Owlia | 281.477.4300 | www.newquest.com

Pizza Hut 10-Year Single Tenant Absolute NNN Lease Investment 710 S. Wayside Drive | HOUSTON, TEXAS

Confidential Offering Memorandum

$1,300,000

Cap Rate: 5.77%

NOI: $75,000

2

Table o

fC

ontents

*The information herein has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy thereof. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.

Table of Contents

Confidentiality & Disclaimer 3

Investment Summary 4

Investment Highlights 5

Property Overview 6

Financial Overview The Offering 7 Rent Schedule 7 Operating Statement 7 Lease Abstract 8 Tenant Profile 9

Location Overview Houston 10 East End Trade Area 12

Information AboutBrokerage Services 15

Contact:NewQuest Properties8827 W. Sam Houston Parkway, N.Suite 200Houston, Texas 77040

Shireen [email protected]

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Co

nfid

entiality &D

isclaimer


The information contained in this Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from NewQuest Properties and it should not be made available to any other person or entity without the written consent of NewQuest Properties. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not reproduce, redistribute, photocopy or duplicate any part of the Offering Memorandum without the prior written consent of NewQuest Properties or the owner(s) of the subject property (“Owner”). If you have no interest in the subject property at this time, please return this Offering Memorandum to NewQuest Properties.

Confidentiality Disclaimer

This Offering Memorandum is furnished to prospective purchasers for the purpose of determining whether to invest in the subject property offered hereby. This Offering Memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained in this Offering Memorandum has been obtained from sources believed to be reliable; however, NewQuest Properties has not verified, and will not verify, any of the information contained herein, nor has NewQuest Properties conducted any investigation regarding these matters. The information contained herein is not a substitute for a thorough due diligence investigation. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property. Neither Owner nor NewQuest Properties nor any of their respective subsidiaries, affiliates, companies, or the officers, directors, employees, agents and representatives of any such entities, etc., make any representations or warranties, expressed or implied, as to the validity, accuracy or completeness of the information provided or to be provided, and nothing herein shall be deemed to constitute a representation, warranty or promise by any such parties as to the future performance of the subject property or any other matters set forth herein.Prospective purchasers are not to construe the contents of this Offering Memorandum or any prior or subsequent information communications from the Owners or any of their respective officers, employees or agents as legal, tax or other advice. Prior to purchasing, prospective purchasers should consult with their own legal counsel and personal and tax advisors to determine the consequences of an investment in the subject property and arrive at an independent evaluation of such investment. No commission or finder’s fee shall be payable to any party by the Owner nor any affiliate or agent thereof in connection with the sale of the subject property, unless otherwise agreed to by Owner in writing. Acquisition of properties such as these offered hereunder involves a high degree of risk and are suitable only for persons and entities of substantial financial means.Prospective purchasers are hereby advised that Owner of the subject property are soliciting offers through NewQuest Properties, which may be accepted or rejected by Owner at Owner’s sole discretion. Any solicitation of an offer for the subject property offered hereunder will be governed by this Offering Memorandum, as it may be modified or supplemented. Prospective purchasers are advised that as part of the offer process, Owner will be evaluating several factors including the experience and financial qualifications of the purchasing entity. Owner shall have no obligation to accept any offer from any prospective purchaser. Owner reserves the right to withdraw the subject property from consideration at any time prior to final execution of a purchase agreement.

4

Investment

Summ

ary


NewQuest Properties is pleased to exclusively present to

qualified investors the sale of a leased free-standing, single

tenant building operating as a Pizza Hut in Houston, Texas

(the “Property”). The Property is comprised of 3,051 SF in

improvements on 22,999 SF of land. Upon closing, the Property

will be subject to a new 10-year absolute triple-net (NNN) sale-

leaseback, with no management or landlord responsibilities.

The lease will have five 4-year renewal options. Base rent

commences at $75,000/yr, with a 10% rent increase for Years

6-10 (Primary Term) and Years 11-14 (Option 1). An 8% rent

increase continues every four years for Options 2 through 5.

The Pizza Hut is operated by and leased to AIGP, LLC d/b/a

Pizza Hut, one of the nation’s largest pizza chains with more

than 16,000 restaurants in over 100 countries and territories.

Pizza Hut has been operating at this location since 1974.

LOCATION OVERVIEWLocated in Southeast Texas near the Gulf of Mexico, Houston is

a leading destination for investors due to its diverse economy,

stable job market, and dynamic growth. These qualities are

driven by superior infrastructure, reasonable cost of living, and

vast diversity in the industries that conduct business within the

city. Houston is the most populous city in Texas and the fourth

most populous city in the United States. It is internationally

known as the “Energy Capital of the World” and is home to

both the world’s largest medical center and NASA Johnson

Space Center. The Property is located in Houston’s East End, a

historic and dense part of the city, with nearby schools including

The University of Houston and Texas Southern University. Area

retailers include Walmart Supercenter, dd’s Discounts, Fallas

Paredes, Melrose, and Harbor Freight Tools.

Investment Summary

Address 710 S. Wayside Drive, Houston, Harris County, Texas 77023

Property Type Retail, Free-Standing Restaurant

Building Size 3,051 SF

Lot Size 22,999 SF

Year Built 1974

Tenant AIGP, LLC d/b/a Pizza Hut

Lease Type Absolute NNN; No Landlord Responsibilities

Lease Term 10 years

Starting Rent $75,000/yr

Rent Increases10% increase for Primary Term (Years 6 - 10)10% increase for Option Term 1 (Years 11 - 15)8% increase for Option Terms 2 - 5 (4-Year Duration Each)

Renewal Options 5 4-Year Options

Lease Commencement Close of Escrow

Price $1,300,000

Cap Rate 5.77%

Net Operating Income (NOI) $75,000

Ownership Interest Fee Simple Absolute with Absolute NNN Lease

PROPERTY OVERVIEW

LEASE OVERVIEW

THE OFFERING

Lease With No ManagementResponsibilities

ABSOLUTE NNNBrand New Primary Term

Sale Leaseback

10-YEARExperienced Pizza Hut

Operator

18+ UNIT

Attractive

RENT ESCALATIONSAbove Average

SALESNo

STATE INCOME TAX

Price $1,300,000Cap Rate 5.77%Net Operating Income (NOI) $75,000

Ownership InterestFee Simple Absolute with Absolute NNN Lease

THE OFFERING


5

Investment

Hig

hlights

Investment Highlights

HURRICANE HARVEY PROOFProperty endured 35 inches of rain and did not cease a day of operations.

BRAND NEW 10-YEAR ABSOLUTE NNN SALE-LEASEBACK WITH NO LANDLORD OBLIGATIONSProperty offers investors a long-term cash flow from a passive investment with no landlord responsibility throughout the base lease term or option periods

ATTRACTIVE RENT ESCALATIONSLease features 10% rent escalations four two 5-year periods, then 8% rent escalations for the remaining four 4-year periods, offering investors a hedge

against inflation

EXPERIENCED OPERATOR WITH PROVEN TRACK RECORDAIGP, LLC owns 18 Pizza Hut locations and is headed by Anand “Andy” Patel, a 30-year veteran in the franchise restaurant industry.

LEGACY PROPERTYPizza Hut Has Been Operating at This Location Since 1974

INCOME TAX-FREE STATEThe State of Texas does not have individual State Income Tax

DENSE RESIDENTIAL AREA WITH FAVORABLE DEMOGRAPHICSSurrounded by a 1-mile population of 18,366 individuals with an average household income of $39,505.

STRONG SALES AND LIMITED COMPETITIONAbove average sales with limited pizza delivery competition

NEAR NUMEROUS SCHOOLS WITH STRONG STUDENT POPULATIONSApproximately 2.5 miles away from University of Houston (43,774 students) and 3 miles away from Texas Southern University (10,514 students)

6

Pro

perty

Overview


Property Overview

TRAFFIC COUNTS S. Wayside Dr 33,369 Vehicles Per Day

Interstate 45 185,136 Vehicles Per Day

DEMOGRAPHICS 1 MILE 2 MILES 3 MILES 5 MILESPopulation 22,375 69,840 138,701 383,994

Population Growth Since 2010 17.19% 11.52% 18.46% 22.53%

Average Household Income $47,865 $52,053 $53,762 $66,472

Daytime Population 14,425 43,334 113,588 480,062

Location NWQ S. Wayside Drive and Miraglen Street

Address 710 S. Wayside Drive, Houston, Texas 77023

County Harris

Property Type Retail, Free-Standing Restaurant

Building Size 3,051 SF

Lot Size 22,999 SF

Year Built 1974

Ownership Interest Fee Simple Absolute with Absolute NNN Lease

Access 1 Curb Cut on S. Wayside Drive

Parking 32 Parking Spaces

PROPERTY DESCRIPTION

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PUBLICATION DATE:

MAP LOCATION

Geospatial or map datamaintained by the Harris County Appraisal District

is for informational purposes and may not have been

prepared for or be suitable for legal, engineering, or surveying purposes. It does not represent an

on-the-ground survey and only represents the

approximate location of property boundaries.

HarrisCountyAppraisalDistrict

HarrisCountyAppraisalDistrict

HARRIS COUNTY APN: 1045500000013

7

Financial

Overview


Financial Overview

THE OFFERING

Net Operating Income (NOI) $75,000

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Lease Year Annual Rent Increases

Years 1-5 $75,000

Years 6-10 $82,500 10%

Option 1: Years 11-14 $90,750 10%

Option 2: Years 15-18 $98,010 8%

Option 3: Years 19-22 $105,851 8%

Option 4: Years 23-26 $114,319 8%

Option 5: Years 27-30 $123,465 8%

RENT SCHEDULE

ESTIMATED OPERATING STATEMENTInvestment Year 1 2 3 4 5 6 7 8 9 10

Revenue

Rental Income $75,000 $75,000 $75,000 $75,000 $75,000 $82,500 $82,500 $82,500 $82,500 $82,500

Total Revenue $75,000 $75,000 $75,000 $75,000 $75,000 $82,500 $82,500 $82,500 $82,500 $82,500

Cash Flow Before Debt Service $75,000 $75,000 $75,000 $75,000 $75,000 $82,500 $82,500 $82,500 $82,500 $82,500

THE OFFERING RENT SCHEDULE

(ESTIMATED) OPERATING STATEMENT

8

Financial

Overview


Financial Overview | (Proposed) Lease Abstract(Proposed) Lease AbstractPizza Hut | 710 S. Wayside | Houston, TexasTenant AIGP, LLC d/b/a Pizza Hut

Guarantor AIGP, LLC

Lease Type Absolute NNN; No Landlord Responsibilities

Lease Term 10 Years

Lease Term Remaining 10 Years on Primary Term

Lease Commencement Upon Closing of Escrow

Starting Rent $75,000

Rental Increases 10% every 5 years

Option to Renew 5 4-year Options

Option Rent Increases 10% for Option 1, 8% for Options 2-5

Roof & Structure Tenant to maintain Premises and all buildings and improvements thereon (interior and exterior, structural and otherwise) in good order and repair

Alterations & Improvement

Tenant permitted to install trade fixtures and other personal property, but shall not impair the structural condition of the Premises or reduce the size thereof and provided further that any such change may not diminish the value of the Premises. Any such construction, alterations or remodeling shall be made in a workmanlike manner and in full compliance with all building laws and ordinances applicable thereto, at Tenant's expense. All such additions, alterations, changes and improvements shall be a part of the Premises.

Sublet/Assignment

Any assignment of this Lease or subleasing of all or part of the Premises shall require Landlord’s consent, except that Tenant may assign this Lease or sublease the Premises without Landlord consent to: (a) any Affiliate, (b) any franchisee of Tenant or any Affiliate, (c) any franchisor of Tenant or any Affiliate, or (d) any successor of Tenant by operation of law such as merger ((a), (b), (c) and (d) hereafter referred to as a (“Permitted Assignment”). Specific limitations apply. Landlord shall have the right without limitation (subject to paragraph 10 hereof) to sell, convey, transfer or assign its interest in the Premises or its interest in this Lease...

ROFR/Offer Yes, conditional

Estoppel Each party agrees, within ten (10) days after receipt of written request by the other, but not more frequently than twice in any period of twelve (12) consecutive months, to execute, acknowledge and deliver...

SNDA

Upon written request of the holder of any mortgage (which term “mortgage” shall also include deeds of trust) now or hereafter relating to the Premises, Tenant will subordinate its rights under this Lease to the lien thereof and to all advances made or hereafter to be made upon the security thereof, and Tenant shall execute, acknowledge and deliver a commercially reasonable instrument in the form customarily used by such encumbrance holder to effect such subordination; conditions apply

Permitted Use Limited to those uses permitted under the zoning for the Premises

Real Estate Taxes Tenant responsibility

Insurance Tenant responsibility to maintain; "all Commercial General Liability policies shall name Landlord and any mortgagee designated by Landlord as an additional insured."

9

Financial

Overview


Financial Overview | Tenant Profile

AIGP, LLC

• AIGP, LLC (“AIGP”) was formed in 2016 with the purchase of 18 Pizza Huts in the greater Houston area, with an additional unit opening in 2018. AIGP boasts average sales at almost double the national Pizza Hut national average and has plans to continue that success. With a 19-restaurant portfolio to date, the company is well capitalized and positioned for future growth.

• AIGP is an affiliate of Apple Investors Group based in Boynton Beach, Florida. Apple Investors Group currently owns over 150 restaurants including Burger King, Applebee’s, and others. The operating partner, Anand “Andy” Patel, has almost 30 years of experience in the restaurant industry. Among his many accolades, Andy recently won the 2017 MVP “American Dream Award” from the Multi-Unit Franchising Conference.

Company Type: FranchiseeWebsite: www.appleig.com

Pizza Hut

• Since 1971 and until 2018, Pizza Hut has been the top pizza chain in the U.S. in terms of both unit count and revenue. Pizza Hut has more than a 50-year history, beginning in 1958 in Wichita, Kansas.

• Today, Pizza Hut is an iconic global restaurant chain known for serving various styles of pizza, wings, pasta, and side dishes including salad, breadsticks, garlic bread, and desserts. Pizza Hut operates in the delivery, carry out, and casual dining segments around the world. Keeping up with technology, a growing percentage of Pizza Hut’s customer orders are being generated digitally.

• Pizza Hut is now corporately known as Pizza Hut, Inc. and is a subsidiary of Yum! Brands, Inc., the world’s largest restaurant company. Pizza Hut operates in over 100 countries and territories throughout the world. As of year end 2017, Pizza Hut had 16,000 units internationally, including 6,300 domestically. Over 97% of domestic Pizza Hut units are franchised. All Pizza Hut units in the greater Houston area are franchised.

Company Type: SubsidiaryWebsite: www.pizzahut.com

Yum! Brands, Inc.

• Founded in 1997 and based in Louisville, Kentucky, Yum! Brands, Inc. (NYSE: YUM) is one of the world’s largest fast food restaurant companies, with over 45,000 restaurants in more than 135 countries and territories. Yum! Brands, Inc. currently owns appx. 10,000 restaurants, but will shrink that number to fewer than 1,000 as the number of eateries owned by franchisees rises from 77% to at least 98% by the end of 2018.

• The company’s restaurant brands – Pizza Hut, KFC, and Taco Bell – are global leaders of the pizza, chicken, and Mexican-style food categories. Worldwide, the Yum! Brands system opens over seven new restaurants per day on average, making it a leader in global retail development.

Company Type: Public (NYSE: YUM)Website: www.yum.com

10*The information herein has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy thereof. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.

Locatio

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Located in Southeast Texas near the Gulf of Mexico, Houston is a leading destination for investors due to its diverse economy, stable job market, and dynamic growth. These qualities are driven by the multitude of industries that conduct business within the city, its superior transportation infrastruc-ture, and reasonable cost of living. Houston’s unique composition serves as a buffer to national economic trends, resulting in continued expansion.

The city is internationally known as the “Energy Capital of the World” and is home to both the world’s largest medical center and NASA’s Johnson Space Center. Houston is colloquially referred to as “Greater Houston” (encompassing nine counties centered around Harris County, the third largest county in the nation) or the “Houston MSA” (Houston-The Woodlands-Sugar Land Metropolitan Statistical Area).

Location Overview | Houston

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Baytown

Trinity Bay

Galveston Bay

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Sugar Land

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The Woodlands

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GROWTH | As the FOURTH MOST POPULOUS CITY IN THE U.S., the City of Houston has a population of approximately 2.3 million. It has been Texas’ TOP DESTINATION FOR THE EIGHT CONSECUTIVE YEAR in a row. With a population of 6,892,427 as of July 1, 2017, the Houston MSA is the FIFTH MOST POPULOUS AND THE SECOND FASTEST GROWING METRO AREA in the U.S. The city ranked SECOND FOR HOUSING STARTS in 2017 and has LED THE NATION IN INDUSTRIAL CONSTRUCTION over the past 10 years.

EMPLOYMENT | The city ADDED 62,900 JOBS in 2017, a 2.1% increase from 2016. Houston’s employment has REBOUNDED SINCE HURRICANE HARVEY (August 2017) and CONTINUES TO GROW at a moderate pace. HOUSTON IS 6TH IN THE NATION FOR JOB GROWTH.

COST-EFFECTIVE | Houston has a reputation for being cost-effective, both for businesses and their employees. The city benefits from NO STATE OR CITY TAXES on personal and corporate income, and is coupled with some of the LOWEST HOUSING AND LIVING COSTS AMONG the top 20 major U.S. metros. The Houston MSA is HOME TO 20 FORTUNE 500 HEADQUARTERS, ranking fourth among metro areas. INFRASTRUCTURE | Houston’s CENTRAL LOCATION AND SUPERIOR TRANSPORTATION INFRASTRUCTURE further enhance Houston’s appearance to local, national and international companies seeking LOGISTICAL EFFICIENCY.


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Location Overview | Houston

1 Mile 2 Miles 3 Miles 5 Miles

Current Households 6,958 21,857 44,945 135,702

Current Population 22,375 69,840 138,701 383,994

2010 Census Average Persons per Household 3.22 3.20 3.09 2.83

2010 Census Population 19,333 63,598 123,339 336,133

Population Growth 2010 to 2017 17.19% 11.52% 18.46% 22.53%

1 Person Household 21.79% 22.52% 24.69% 30.15%

2 Person Households 21.69% 22.30% 23.04% 24.72%

3+ Person Households 56.52% 55.18% 52.27% 45.14%

Owner-Occupied Housing Units 42.36% 46.42% 43.15% 44.89%

Renter-Occupied Housing Units 57.64% 53.58% 56.85% 55.11%

2017 Estimated White 61.47% 61.74% 52.51% 46.17%

2017 Estimated Black or African American 5.46% 4.93% 17.35% 29.08%

2017 Estimated Asian or Pacific Islander 0.71% 1.16% 2.40% 2.97%

2017 Estimated American Indian or Native Alaskan 0.94% 0.88% 0.77% 0.62%

2017 Estimated Other Races 31.43% 31.29% 26.97% 21.16%

2017 Estimated Hispanic 88.53% 87.52% 71.36% 55.14%

2017 Estimated Average Household Income $47,865 $52,053 $53,762 $66,472

2017 Estimated Median Household Income $33,782 $37,467 $38,342 $46,519

2017 Estimated Per Capita Income $15,293 $16,376 $16,752 $22,675

2017 Estimated High School Graduate 27.33% 26.50% 25.45% 26.33%

2017 Estimated Bachelors Degree 6.72% 7.96% 10.28% 11.88%

2017 Estimated Graduate Degree 2.93% 3.29% 5.06% 8.50%

2017 Median Age 33.3 33.2 31.5 32.6

©2018, Sites USA, Chandler, Arizona, 480-491-1112 page 1 of 1 Demographic Source: Applied Geographic Solutions 10/2017, TIGER Geography

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GROSS AREA PRODUCT | The Houston MSA’s Gross Area Product is EXPECTED TO MORE THAN DOUBLE between 2015 and 2020, growing at a compounded annual rate of 3.1 percent, OUTPACING THE U.S. RATE of 2.7 percent. Only 23 foreign countries’ Gross Domestic Product exceed Houston’s.

IMPORTS/EXPORTS | Among U.S. seaports, the Port of Houston ranked FIRST IN FOREIGN TONNAGE for 20 consecutive years, and FIRST IN IMPORT TONNAGE for 25 consecutive years. Houston maintains the SECOND LARGEST EXPORT MARKET in the U.S.

ENERGY | Houston is RECOGNIZED WORLDWIDE FOR ITS ENERGY INDUSTRY, particularly for oil and natural gas. The city features the LARGEST PETROCHEMICAL COMPLEX IN THE U.S. (SECOND LARGEST IN THE WORLD). Renewal energy sources, including wind and solar, are growing economic bases in Houston.

MEDICAL INDUSTRY | Houston is home to THE TEXAS MEDICAL CENTER, THE WORLD’S LARGEST MEDICAL COMPLEX, with 50 million developed square feet and $3 billion in construction projects underway. The center employs 106,000 individuals and accommodates over 7.2 million annual patient visits.

DIVERSITY AND RECREATION | Houston is the MOST DIVERSE CITY IN TEXAS (one in four persons is foreign-born) and has the THIRD LARGEST CONSULAR REPRESENTATION in the nation. Houston is home to many cultural institutions and exhibits, which attract more than 7 MILLION VISITORS A YEAR. The Theater District is located in the heart of Downtown Houston and is home to the Bayou Place entertainment complex featuring restaurants, movies, plazas, and parks. Other major attractions include Houston Zoo, Houston Museum of Natural Science, Space Center Houston, Kemah Boardwalk, and more. Houston is home to six professional major league teams including the Houston Texans (NFL), Houston Rockets (NBA), Houston Astros (MLB), and more.

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12*The information herein has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy thereof. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.

TOP AREA UNIVERSITIES AND SCHOOLSSchool Students

University of Houston 43,774

Texas Southern University 10,514

Rice University 6,740

Austin High School 1,885

LARGEST HOUSTON MSA EMPLOYERSCompany Employees

Memorial Hermann Health System 24,108

H-E-B 23,732

The University of Texas MD Anderson 21,086

McDonald’s Corp 20,918

Houston Methodist 20,000

Kroger Company 16,000

United Airlines 14,941

Schlumberger 12,069

The Property is located on S. Wayside Drive in Houston’s East End, a densely populated area running east from Downtown Houston between the Houston Ship Channel and Interstate 45. Developing rapidly in the first half of the 20th century, the area encompasses the Eastwood, Idylwood, Lawndale, Magnolia Park, Harrisburg, and Second Ward neighborhoods. Although located within city limits, this part of the East End stands out for its pleasant, suburban atmosphere, with large areas of greenery at Villa de Mattel, a series of stone gates at Idylwood, the fairways of the former Houston Country Club, and the large willow oaks of Houston Country Club Place. Urban revitalization began in recent years, with shuttered industrial facilities making way for retail and residential developments. The East End light rail line was completed in 2017, allowing riders to connect from the Theater District Station in Downtown to the Magnolia Park Transit Center. With more and more skilled labor jobs and renovations to the Port of Houston, the East End continues surging stronger than any other time in history.

Location Overview | East End Trade AreaLo

cation

Overview


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Location Overview | East End Trade Area

43,744 students

Garland Dr

Broadway St

Burnet Elementary

Lantrip Elementary

Eastwood Academy High School

Cage Elementary

Distribution Center

Navarro Middle School

Kahla Middle School Tijerina

Elementary

Carillo Elementary

Briscoe Elementary

Gallegos Elementary

De Zavala Elementary

Harris Elementary

Davila Elementary

Southmayd Elementary

Deady Middle School

Milby High School

Supercenter

Eastside Campus

Austin Middle School

S 75th St

Franklin Elementary

JP Henderson Elementary School

Gus Wortham Golf Course

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Location Overview | East End Trade Area

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Leasing | Tenant Representation | Development | Land Brokerage | Acquisition | Property Management

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:• ABROKERisresponsibleforallbrokerageactivities,includingactsperformedbysalesagentssponsoredbythe

broker.• ASALESAGENTmustbesponsoredbyabrokerandworkswithclientsonbehalfofthebroker.

A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents):• Puttheinterestsoftheclientaboveallothers,includingthebroker’sowninterests;• Informtheclientofanymaterialinformationaboutthepropertyortransactionreceivedbythebroker;• Answertheclient’squestionsandpresentanyoffertoorcounter-offerfromtheclient;and• Treatallpartiestoarealestatetransactionhonestlyandfairly.

A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:

AS AGENT FOR OWNER (SELLER/LANDLORD):Thebrokerbecomesthepropertyowner’sagentthroughanagree-mentwiththeowner,usuallyinawrittenlistingtosellorpropertymanagementagreement.Anowner’sagentmustperformthebroker’sminimumdutiesaboveandmustinformtheownerofanymaterialinformationabouttheproertyortransactionknownbytheagent,includinginformationdisclosedtotheagentorsubagentbythebuyerorbuyer’sagent.

AS AGENT FOR BUYER/TENANT:Thebrokerbecomesthebuyer/tenant’sagentbyagreeingtorepresentthebuyer,usuallythroughawrittenrepresentationagreement.Abuyer’sagentmustperformthebroker’sminimumdutiesaboveandmustinformthebuyerofanymaterialinformationaboutthepropertyortransactionknownbytheagent,includinginformationdisclosedtotheagentbythesellerorseller’sagent.

AS AGENT FOR BOTH - INTERMEDIARY:Toactasanintermediarybetweenthepartiesthebrokermustfirstobtainthewrittenagreementofeachpartytothetransaction.Thewrittenagreementmuststatewhowillpaythebrokerand,

inconspicuousboldorunderlinedprint,setforththebroker’sobligationsasanintermediary.Abrokerwhoactsasanintermediary:

• Musttreatallpartiestothetransactionimpartiallyandfairly;• May,withtheparties’writtenconsent,appointadifferentlicenseholderassociatedwiththebrokertoeachparty

(ownerandbuyer)tocommunicatewith,provideopinionsandadviceto,andcarryouttheinstructionsofeachpartytothetransaction.

• Mustnot,unlessspecificallyauthorizedinwritingtodosobytheparty,disclose:• thattheownerwillacceptapricelessthanthewrittenaskingprice;• thatthebuyer/tenantwillpayapricegreaterthanthepricesubmittedinawrittenoffer;and• anyconfidentialinformationoranyotherinformationthatapartyspecificallyinstructsthebrokerinwritingnot

todisclose,unlessrequiredtodosobylaw.

AS SUBAGENT:Alicenseholderactsasasubagentwhenaidingabuyerinatransactionwithoutanagreementtorepresentthebuyer.Asubagentcanassistthebuyerbutdoesnotrepresentthebuyerandmustplacetheinterestsoftheownerfirst.

TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH:•Thebroker’sdutiesandresponsibilitiestoyou,andyourobligationsundertherepresentationagreement.•Whowillpaythebrokerforservicesprovidedtoyou,whenpaymentwillbemadeandhowthepaymentwillbecalculated.

LICENSE HOLDER CONTACT INFORMATION:Thisnoticeisbeingprovidedforinformationpurposes.Itdoesnotcreateanobligationforyoutousethebroker’sservices.Pleaseacknowledgereceiptofthisnoticebelowandretainacopyforyourrecords.

LicensedBroker/BrokerFirmNameorPrimaryAssumedBusinessName

DesignatedBrokerofFirm

LicensedSupervisorofSalesAgent/Associate

SalesAgent/Associate’sName

LicenseNo.

LicenseNo.

LicenseNo.

LicenseNo.

Phone

Phone

Phone

Phone

Email

Email

Email

Email

Buyer/Tenant/Seller/LandlordInitials Date

RegulatedbytheTexasRealEstateCommission(TREC)|Informationavailableathttp://www.trec.texas.gov

The information herein is subject to errors or omissions and is not, in any way, warranted by NewQuest Properties or by any agent, independent associate or employee of NewQuest Properties. This information is subject to change without notice.

8827 W. Sam Houston Parkway N. | Suite 200 | Houston, Texas 77040 | 281.477.4300

Home Asset, Inc., dba NewQuest Properties 420076 - (281)477-4300

H. Dean Lane, Jr. 366134 [email protected] (281)477-4300

H. Dean Lane, Jr. 366134 [email protected] (281)477-4300

Information About Brokerage Services

15

IAB

S Form

Please Submit Offers to

Shireen Owlia281.477.4300

[email protected]

8827 W. Sam Houston Parkway, N. Suite 200Houston, Texas 77040www.newquest.com

05.02.2018

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