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INVESTMENT OFFERING | $3,989,000 / 7% CAP
Buffalo Wild Wings – Sprint – Mattress 1
200 E. Hwy 332, Lake Jackson, TX – Houston Metro
214.915.8890
JOE CAPUTO
[email protected]
BOB MOORHEAD
[email protected]
RUSSELL SMITH
[email protected]
property. Newly constructed 10,000+ building on 1.65+ acre high visibility Lowe’s pad site.
tenant mix / lease structure. 100% occupied net leased 3-tenant building. Building is leased to Buffalo Wild Wings, Sprint, and Mattress 1.
location. Buffalo Wild Wings, Sprint, and Mattress 1 are strategically located along Hwy 332 (31,038 Cars / Day) in a dense retail area of Lake Jackson. Hwy
332, known as “SH 332”, is a 15-mile, northwest-southeast thoroughfare in the region. SH 332 runs from Surfside Beach, TX on the Gulf of Mexico, inland to
Brazoria, TX. Nolan Ryan Expressway “Hwy 288” (42,200 Cars / Day), an arterial north-south highway in the region, also provides direct access to the site and the
surrounding area. This location positions the subject property to capture significant traffic volumes from a wide variety of areas in Lake Jackson. Said geographic
advantage has spurred large scale retail development in the immediate trade area. The subject property is a pad site to Lowe’s, located near Brazos Mall (682,831
SF), and is surrounded by a variety of big box retailers including Walmart, Target, Home Depot, Best Buy, Office Depot, Big Lots!, Kohl’s, Ross, Dollar General,
Aaron’s, Academy Sports & Outdoors, Payless Shoe Source, McDonald’s, Chick-fil-A, Burger King, Whataburger, Texas Roadhouse, Popeye’s, Cici’s Pizza,
Fuddruckers, Sonic, and many more. Lake Jackson is located 50 miles south of Houston.
Table of contents | Disclaimer
Buffalo Wild Wings – Sprint – Mattress 1
200 E. Hwy 332, Lake Jackson, TX
PAGE 1:
COVER
Disclaimer
PAGE 2:
TABLE OF CONTENTS | DISCLAIMER
PAGE 3:
INVESTMENT | TENANT OVERVIEWS
PAGE 4:
RENT ROLL
PAGE 5-6:
AERIAL PHOTOS
PAGE 7:
SITE PLAN
PAGE 8:
LOCATION OVERVIEW
PAGE 9-10:
BRAZORIA COUNTY DEVELOPMENT OVERVIEW
PAGE 11-12:
LOCATION MAPS
PAGE 13:
DEMOGRAPHICS
EXP Realty Advisors, Inc. (“Agent”) has been engaged as an agent for the sale of the
property located at 200 E. Hwy 332, Lake Jackson, TX by the owner of the Property
(“Seller”). The Property is being offered for sale in an “as-is, where-is” condition and Seller
and Agent make no representations or warranties as to the accuracy of the information
contained in this Offering Memorandum. The enclosed materials include highly confidential
information and are being furnished solely for the purpose of review by prospective
purchasers of the interest described herein. The enclosed materials are being provided
solely to facilitate the prospective investor’s own due diligence for which it shall be fully and
solely responsible. The material contained herein is based on information and sources
deemed to be reliable, but no representation or warranty, express or implied, is being made
by Agent or Seller or any of their respective representatives, affiliates, officers, employees,
shareholders, partners and directors, as to the accuracy or completeness of the information
contained herein. Summaries contained herein of any legal or other documents are not
intended to be comprehensive statements of the terms of such documents, but rather only
outlines of some of the principal provisions contained therein. Neither the Agent nor the
Seller shall have any liability whatsoever for the accuracy or completeness of the
information contained herein or any other written or oral communication or information
transmitted or made available or any action taken or decision made by the recipient with
respect to the Property. Interested parties are to make their own investigations, projections
and conclusions without reliance upon the material contained herein. Seller reserves the
right, at its sole and absolute discretion, to withdraw the Property from being marketed for
sale at any time and for any reason. Seller and Agent each expressly reserves the right, at
their sole and absolute discretion, to reject any and all expressions of interest or offers
regarding the Property and/or to terminate discussions with any entity at any time, with or
without notice. This offering is made subject to omissions, correction of errors, change of
price or other terms, prior sale or withdrawal from the market without notice. Agent is not
authorized to make any representations or agreements on behalf of Seller. Seller shall
have no legal commitment or obligation to any interested party reviewing the enclosed
materials, performing additional investigation and/or making an offer to purchase the
Property unless and until a binding written agreement for the purchase of the Property has
been fully executed, delivered, and approved by Seller and any conditions to Seller’s
obligations hereunder have been satisfied or waived. By taking possession of and
reviewing the information contained herein, the recipient agrees that (a) the enclosed
materials and their contents are of a highly confidential nature and will be held and treated
in the strictest confidence and shall be returned to Agent or Seller promptly upon request;
and (b) the recipient shall not contact employees or tenants of the Property directly or
indirectly regarding any aspect of the enclosed materials or the Property without the prior
written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be
copied or otherwise reproduced without the prior written authorization of Seller and Agent.
CONSTRUCTION PROGRESS 6.2.14
INVESTMENT OVERVIEW
Buffalo Wild Wings – Sprint – Mattress 1
200 E. Hwy 332, Lake Jackson, TX
PRICE:
$3,989,000
CAP RATE:
7.0%
NET OPERATING INCOME:
$279,192
BUILDING AREA:
10,000+ Square Feet
LAND AREA:
1.65+ Acres
YEAR BUILT:
2014
OWNERSHIP:
Fee Simple Interest
OCCUPANCY:
100%
Tenant overview
Blazin Wings, Inc. | www.buffalowildwings.com
Buffalo Wild Wings, Inc. owns, operates, and franchises restaurants primarily in the United States. It offers chicken and various food and beverage items, as well
as serves bottled beers, wines, and liquor. The Company’s restaurants feature dining and bar areas, and many of the restaurants have patio seating. The
Company places approximately 50 high-definition flat-screen monitors and up to 10 projection screens throughout the restaurant to allow for easy viewing. These
televisions, combined with its sound system, Buzztime Trivia and assorted video games, provide a source of entertainment for its guests. All of its menu items are
made-to-order and are available for take-out. As of February 4, 2014, the company owned and operated, and franchised approximately 1,000 Buffalo Wild Wings
locations in 49 states in the United States, as well as in Canada and Mexico. Buffalo Wild Wings, Inc. was founded in 1982 and is headquartered in Minneapolis,
Minnesota.
Lipsey Communications, LLC dba Connectivity Source | www.sprint.com
Connectivity Source is a Sprint preferred retailer and certified business dealer with over 35 locations and 212 employees throughout Texas & Louisiana.
Sprint Corporation, incorporated on May 10, 2012, offers a range of wireless and wireline communications services to consumers, businesses and government
users. On July 10, 2013, the Company, SoftBank Corp. and Sprint Nextel Corporation (Sprint Nextel) completed the merger. In the Merger, Sprint Corporation was
merged into Sprint Nextel, New Sprint became the parent company of Sprint Nextel, with Sprint Nextel becoming its direct wholly owned subsidiary, and Sprint
Nextel changed its name to Sprint Communications, Inc. The Company develops, engineers and deploys technologies, including the first wireless fourth
generation (4G) service from a national carrier in the United States; offering mobile data services, prepaid brands, including Virgin Mobile USA, Boost Mobile, and
Assurance Wireless; instant national and international push-to-talk capabilities, and a global Tier 1 Internet Service. The Company also offers unlimited data
services.
MATTRESS1 ONE | | www.mattress1.com
Mattress1 One is the #1 mattress store for Florida and Texas residents shopping for a great price on top name brand mattresses like Tempur-Pedic, iComfort,
Sealy, Serta, Simmons, Stearns and Foster, and Kingsdown. They have more than 150 stores conveniently located throughout Florida & Texas.
3
Rent Roll
Buffalo Wild Wings – Sprint – Mattress 1
200 E. Hwy 332, Lake Jackson, TX
Square
Tenant
Blazin Wings, Inc. dba
Buffalo Wild Wings
Years
Rent
Rent
Lease
GLA
Begin
End
Remain
Begin
Monthly
PSF
Annually
PSF
Type
Options / Notes
5,200
52%
Aug-14
Aug-24
10
Aug-14
$11,266
$2.17
$135,192
$26.00
Net
10% Rent Increases Every 5-Yrs.
Aug-19
$12,393
$2.38
$148,716
$28.60
Option 1
Aug-24
$13,632
$2.62
$163,584
$31.46
Option 2
Aug-29
$14,993
$2.88
$179,916
$34.60
Option 3
Aug-34
$16,492
$3.17
$197,904
$38.06
5
Aug-14
$3,500
$2.50
$42,000
$30.00
Option 1
Aug-19
$3,850
$2.75
$46,200
$33.00
5.3
Aug-14
$8,500
$2.50
$102,000
$30.00
Option 1
Jan-20
$9,350
$2.75
$112,200
$33.00
10% Rent Increases In Options
Option 2
Jan-25
$10,285
$3.03
$123,420
$36.30
Tw o (2) Five (5) Year Option
Current
$23,266
Lipsey Com m unications, LLC
dba Connectivity Source
1,400
Mattress Pal Holding, LLC dba
Mattress 1 One
3,400
TOTALS
Lease Term
Feet
10,000
14%
34%
Aug-14
Aug-14
100%
Aug-19
Dec-29
Three (3) Five (5) Year Options
Net
10% Rent Increase In Option
One (1) Five (5) Year Option
Net
$279,192
* Tena nt res pons ibilities include reimburs ement for taxes , ins ura nce, a nd common a rea ma intena nce
** La ndlord Res pons ibilities Include roof, s tructure, a nd pa rking
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Aerial PHOTO
Buffalo Wild Wings – Sprint – Mattress 1
200 E. Hwy 332, Lake Jackson, TX
Jerry’s
Food King
5
Aerial PHOTO
Buffalo Wild Wings – Sprint – Mattress 1
200 E. Hwy 332, Lake Jackson, TX
6
SITE PLAN
Buffalo Wild Wings – Sprint – Mattress 1
200 E. Hwy 332, Lake Jackson, TX
7
LOCATION OVERVIEW
Buffalo Wild Wings – Sprint – Mattress 1
200 E. Hwy 332, Lake Jackson, TX
IMMEDIATE TRADE AREA
HOUSTON-SUGAR LAND-BAYTOWN METROPOLITAN AREA
Buffalo Wild Wings, Sprint, and Mattress 1 are strategically located along Hwy
332 (31,038 Cars / Day) in a dense retail area of Lake Jackson. Hwy 332,
known as “SH 332”, is a 15-mile, northwest-southeast thoroughfare in the
region. SH 332 runs from Surfside Beach, TX on the Gulf of Mexico, inland to
Brazoria, TX. South of the subject property, SH 332 merges into Nolan Ryan
Expressway (42,200 Cars / Day). Nolan Ryan Expressway (Hwy 288) is an
arterial north-south highway in the region; it begins in Houston and provides
direct access to the site and surrounding area. This location positions the
subject property to capture significant traffic volumes from a wide variety of
areas in Lake Jackson.
The Houston-Sugar Land-Baytown Metropolitan Statistical Area (MSA),
colloquially known as Greater Houston, is the 6th largest in the United States
with a population of 5,946,800. From 2000 to 2030, the metropolitan area is
projected by Woods & Poole Economics to rank fifth in the nation in population
growth—adding 2.66 million people.
This geographic advantage has spurred large scale retail development in the
immediate trade area. The subject property is a pad site to Lowe’s, located
near Brazos Mall (682,831 SF) and surrounded by a variety of big box retailers.
Brazos Mall features over 73 tenants and is anchored by Dillard’s, JC Penny,
Sears, and Starplex Cinemas.
National credit tenants within 1-mile of the subject property include Walmart,
Target, Home Depot, Best Buy, Office Depot, PetSmart, Petco, Office Max, Big
Lots!, Kohl’s, Ross, Zales, Hobby Lobby, Dollar General, Enterprise, Aaron’s,
Academy Sports & Outdoors, Payless Shoe Source, Hastings, Discount Tire,
Tractor Supply Co., McDonald’s, Chick-fil-A, Burger King, Whataburger, Texas
Roadhouse, Popeye’s, Cici’s Pizza, Fuddruckers, Sonic, and many more.
LAKE JACKSON, TX
Lake Jackson is a city in Brazoria County, Texas within the Houston–Sugar
Land–Baytown metropolitan area, located 50 miles south of Houston, 45 miles
southwest of Galveston, and 8 miles north of the Gulf of Mexico. As of a 2010
U.S. Census Bureau estimate, the city population was 26,849.
Lake Jackson is situated in the heart of the retail center of southern Brazoria
County. It is in close proximity to the world's largest petrochemical complex and
related industries; major components of this complex include Dow Chemical
Company, BASF Corporation, Phillips Petroleum, and many more. In early
March, Dow Chemical Co. announced plans to build a massive new research
and development campus in Lake Jackson. The 900,000-square-foot, fivebuilding campus, will house 2,000 employees and is expected to be completed
by 2016. This state of the art administrative facility will support various
businesses, R&D and manufacturing operations across the Gulf Coast, and is
projected to expand the downtown area with more retail and restaurant
development due to the increased workforce. Lake Jackson’s proximity to
Houston, along with other local resources and facilities, have continued to fuel
and promote growth in the area.
In 2013, Houston was placed in Forbes’ “Top 5 Best Big Cities for Jobs”. The
Greater Houston Gross Metropolitan Product (GMP) in 2014 is projected to be
$488.7 billion, up 5.4 percent from 2013 GMP of 463.7 billion. Between 2012
and 2013, Houston’s GMP increased 3.1 percent. Only 28 nations other than
the United States have a GDP exceeding the Greater Houston GMP. Mining,
which in Houston is almost entirely oil and gas exploration and production,
accounts for 11 percent of Greater Houston's GMP.
Houston is second to New York City in Fortune 500 headquarters. Galveston
Bay and the Buffalo Bayou together form one of the most important shipping
hubs in the world, and the Port of Houston, the Port of Texas City, and the Port
of Galveston are all major seaports located in Greater Houston. The area is
one of the leading centers of the energy industry, particularly petroleum
processing, and many companies have large operations in this region. The
MSA comprises the largest petrochemical manufacturing area in the world. The
area is also the world's leading center for building oilfield equipment, and is a
major center of biomedical research, aeronautics, and high-technology.
Because of these economic trades, many residents have moved to the
Houston area from other U.S. states, as well as hundreds of countries
worldwide.
Houston is home to the Texas Medical Center—the largest medical center in
the world—several universities (including Rice University, Texas Southern
University, and The University of Houston), and two of the largest systems of
higher learning in the United States (The Houston and Lone Star Community
College systems). The University of Houston’s annual impact on the Houstonarea's economy alone equates to that of a major corporation: $1.1 billion in new
funds attracted annually to the Houston area, $3.13 billion in total economic
benefit, and 24,000 local jobs generated.
Recent accolades include:
 The Brookings Institution ranked Houston as the fastest growing economy
in North America; Houston posted 118,200 new jobs in 2012 and added
more than 87,600 new jobs in 2013.
 The Association of Foreign Investors in Real Estate (“AFIRE”), recently
named Houston the 5th best city in the world for commercial real estate
investment.
8
BRAZORIA COUNTY DEVELOPMENT OVERIVEW
Buffalo Wild Wings – Sprint – Mattress 1
200 E. Hwy 332, Lake Jackson, TX
Dow Chemicals is building a fivebuilding, 900,000-square-foot
R&D center in Lake Jackson for
2,000 Employees.
“Boom times on the bay”
It took Brazoria County 150 years to reach a value of $21 billion, a number which is expected to double in the next 10 years due to an influx of
development spurred by shale plays.
Right now the taxable value of Brazoria County is around $21 billion, said Robert Worley, president and CEO of the Economic Development Alliance for Brazoria County. In
the next 10 years, there is expected to be $21 billion of industrial investment in Brazoria County, he said, and almost all because of shale gas. “It took us 150 years to get to
a value of $21 billion, and we are going to double the taxable value of the county in the next 10 years,” he said. “And that’s only direct capital investment – not retail
shopping centers, new roadway, etc. The trailing investments for these projects will go on for the next 15 years…”. As highlighted on the next page, a variety of
developments taking place in the Gulf Coast area have spurred monumental growth in Brazoria County.
1. Ryan, Molly. "Boom times on the Bay." Houston Business Journal [Houston] 21 Mar. 2014, Centerpiece sec.: 18. Print.
$9.4B
6,800+
955+
4,485+
Amount of planned industrial
investment between 2011
and 2013 in Brazoria County
Number of construction workers
estimated to be needed in Brazoria
County from industrial investments
between 2011 and 2013
Number of estimated new direct
company jobs to be created in Brazoria
County from the industrial investments
between 2011 and 2013
Number of estimated direct and indirect
jobs created in Brazoria County from
the industrial investments between
2011 and 2013
Sources: American Chemistry Council and the Economic Development Alliance for Brazoria County
9
BRAZORIA COUNTY DEVELOPMENT OVERIVEW
Buffalo Wild Wings – Sprint – Mattress 1
200 E. Hwy 332, Lake Jackson, TX
6. DOW’S CHEMICAL EXPANSION
Dow is also planning an extensive chemical
expansion at its immense Freeport complex as
part of a $4 billion Gulf Coast expansion
project. In Freeport, the expansion includes
adding two performance plastics expansions, a
propylene production facility and a new
ethylene unit. Between 400 and 500
permanent new jobs are expected to be
created when the project is complete in 2017.
Also Dow’s joint-venture with Japan-based
Mitsui plans to build a chlor-alkali plant in
Freeport. According to Dow, the company
currently has 3,000 to 4,000 construction
contractors at its Freeport site.
7. NEW GROCER
LAKE
JACKSON
The Representatives for the San Antoniobased grocer H-E-B confirmed plans are
underway for a new store in Lake Jackson. It
is slated to open in Spring 2015 and will be at
the corner of Oyster Creek and Oak drives.
8. BASF NEW PLANT
1. TENARIS STEEL PLANT
Luxembourg-based Tenaris SA (NYSE:
TS), a steel pipe firm with its U.S.
headquarters in Houston, is building a $1.5
billion steel pipe manufacturing facility in
Bay City, TX. The plant will create about
600 permanent jobs and be complete by
2016.
2A & 2B. PHILLIPS 66 NEW PLANT
Phillips 66 (NYSE: PSX) is investing $3
billion in two Brazoria County projects which
are expected to create 50 full-time jobs as
well as more than 1,000 construction jobs.
The Houston-based company is building a
100,000-barrel-per-day fractionator near its
refinery in Sweeny, TX, to supply natural
gas liquids to the petrochemical industry
and heating markets. It is expected to start
up in the third quarter of 2015. It is also
building a $1 billion liquefied petroleum gas
export terminal – its first ever – in Freeport,
Texas, to tap international markets for their
propane and butane needs. Initial capacity
will be 4.4 million barrels per months, and
startup is expected in mid-2016.
3. CHEVRON PHILLIPS EXPANSION
The woodland-based Chevron Phillips
Chemical Company LP plans two new
polyethylene units, as well the expansion of
its ethylene production capacity in Old
Ocean, Texas. The expansions are part of
the company’s $6 billion Gulf Coast
Petrochemicals project, which is complete in
2017 and will create 10,000 engineering and
construction jobs.
4. NEW COMMUNITY
Dallas-based Hillwood Communities will
break ground this spring on its first Houstonarea master-planned community, named
Pomona, near Highway 288 in Manvel, about
The 20 mils south of downtown Houston. The
$700 million development, with Houstonbased McGuyer Homebuilders Inc., will sit on
1,00 acres and include 2,100 single-family
homes ranging in price from $250,000 to
$400,000. It will include a new elementary
school and possibly a new junior high.
5. DOW’S NEW R&D CENTER
The Dow Chemical Co. (NYSE: DOW) in
early March revealed plans to build a
massive research and development center in
Lake Jackson, Texas. The five-building
Texas Innovation Center will house about
2,000 of the Michigan-based company’s
employees. The five buildings, which total
about 900,000 square feet, will be on a 50acre site. In addition to two R&D buildings,
there will be an administration building, a
visitor center, and an employee amenities
center. Houston-based Core Real Estate LLC
will have completed the project in 2016.
BASF SE, the German chemical giant, is
building a new production plant for emulsion
polymers in Freeport. The $90 million
investment is expected to create 20 permanent
jobs as well as 200 construction jobs at its
peak. The project is expected to be complete
this summer.
9. FREEPORT LNG EXPORT FACILITY
B Houston-based Freeport LNG Expansion LP
plans to spend about $13 billion to construct a
liquefied natural gas export facility in Freeport
that would employ 3,500 construction workers
and create 160 permanent jobs. Freeport LNG
received approval to export LNG, but is waiting
for authorization to construct and operate its
liquidation facility. The authorization is
expected to come through in the third quarter,
and, once this happens, Freeport LNG can
begin its four-five year construction process.
1. Ryan, Molly. "Boom times on the Bay." Houston
Business Journal [Houston] 21 Mar. 2014, Centerpiece
sec.: 18. Print.
10
LOCATION MAP
Buffalo Wild Wings – Sprint – Mattress 1
200 E. Hwy 332, Lake Jackson, TX
11
LOCATION MAP
Buffalo Wild Wings – Sprint – Mattress 1
200 E. Hwy 332, Lake Jackson, TX
12
DEMOGRAPHICS
Buffalo Wild Wings – Sprint – Mattress 1
200 E. Hwy 332, Lake Jackson, TX
Demographic snapshot
Radius
1 Mile
3 Mile
5 Mile
2019 Projection
7,004
35,497
54,421
2014 Estimate
6,576
33,167
50,753
2010 Census
6,464
32,065
48,635
Growth 2014-2019
6.51%
7.03%
7.23%
Growth 2010-2014
1.73%
3.44%
4.35%
2019 Projection
2,848
13,508
19,845
2014 Estimate
2,675
12,622
18,483
2010 Census
2,639
12,244
17,737
Growth 2014 - 2019
6.47%
7.02%
7.37%
Growth 2010 - 2014
-0.89%
3.16%
3.11%
Owner Occupied
1,399
8,664
12,300
Renter Occupied
1,275
3,957
6,183
2014 Avg Household Income
$69,920
$84,265
$75,904
2014 Med Household Income
$56,839
$69,568
$59,627
<$25,000
403
1,572
3,179
$25,000 - $50,000
751
2,889
4,486
$50,000 - $75,000
531
2,257
3,340
$75,000 - $100,000
503
2,267
3,034
$100,000 - $125,000
187
1,588
2,013
$125,000 - $150,000
115
788
913
$150,000 - $200,000
123
601
745
63
660
774
Population:
Households:
Downtown Houston, Texas
2014 Households by Household Inc:
$200,000+
Brazos Mall, Lake Jackson, TX
13

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