CREEKSIDE BUSINESS CENTER, WOODLANDS, TX€¦ · WOODLANDS, TX Offering Memorandum. Confidentiality...

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$1,750,000 *8.17% Cap Rate *9.91% Cash/Cash *13.16% Actual *Pro Forma CREEKSIDE BUSINESS CENTER, WOODLANDS, TX Offering Memorandum

Transcript of CREEKSIDE BUSINESS CENTER, WOODLANDS, TX€¦ · WOODLANDS, TX Offering Memorandum. Confidentiality...

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$1,750,000

*8.17% Cap Rate

*9.91% Cash/Cash

*13.16% Actual

*Pro Forma

CREEKSIDE BUSINESS CENTER, WOODLANDS, TX

Offering Memorandum

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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 and should 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, unverified information 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 due diligence 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 future projected 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, the compliance 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 or intentions 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 or representation whatsoever regarding the accuracy or completeness of the

information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus &

Millichap Real Estate Investment Services, Inc. © 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 is not 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, or commercial 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.

MAGNOLIA NNN INVESTMENT

Magnolia, TX

ACT ID Y0860199

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CREEKSIDE BUSINESS CENTER

Offering Memorandum

David B. Fisher, CCIMOpportunity Investments

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

[email protected] TX: 691654

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

ID: Z0860074

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INVESTMENT SUMMARY…Investment Overview

Investment Highlights

Site Plan

Surrounding Retail

Property Photos

FINANCIAL ANALYSIS…Rent Roll

Operating Statement

MARKET COMPARABLES…

Sales Comparables

MARKET OVERVIEW…Market Analysis

Demographic Analysis

TABLE OF CONTENTS

CREEKSIDE BUSINESS CENTER

5,000 SF| GROSS LEASABLE AREA |

0607

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MAJOR EMPLOYERS

EMPLOYER# OF

EMPLOYEES *

Country Fresh LLC 500

Texas Childrens Hospital 492

Lincoln Manufacturing 350

Walmart 350

Kroger 326

H E Butt Grocery Company 294

Club At Carlton Woods 200

Unive of TX M D Anderson Can

200

Cude Oilfield Contractors Inc

150

Home Depot The 150

John Cooper School 150

Zoes Kitchen Inc 116

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2016 Estimate Pop 2,562 46,800 88,750

2016 Census Pop 2,041 37,986 73,954

2016 Estimate HH 823 14,460 29,371

2016 Census HH 661 11,782 24,512

Median HH Income $96,094 $112,590 $115,913

Per Capita Income $44,632 $45,482 $50,551

Average HH Income $138,843 $147,175 $152,718

* # of Employees based on 5 mile radius

INVESTMENT SUMMARY

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Price $1,750,000

Net Operating Income – Current $67,207

Net Operating Income – Pro Forma $147,551

Capitalization Rate – Current 3.84%

Capitalization Rate – Pro Forma 8.43%

Price/SF $350

Rentable Offices 18

Rent/SF $3.86

Lease Type Annual / Month to Month

Gross Leasable Area 5,000

Number of Condominium Units 4 (B100, B200, B300 & B400)

Year Built 2014

Common Lot Size 3.56 Acres

OFFERING SUMMARY

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OFFERING SUMMARY

CHARLOTTE NNN

INVESTMENT OVERVIEW

CHEVRON C-STORE SAM HOUSTON PKWY

OVERVIEW

Marcus & Millichap has been retained on an exclusive basis and is pleased to present theopportunity to acquire a combined real estate investment and business opportunity knownas Creekside Business Center located a 25420 Kuykendahl Rd. Tomball, TX. (“Property”.)Constructed in 2014, the investment is part of an office condominium development knownas The Preserve Office Park and is located on a 3.56 acre site. The real estate includes fourcontiguous condominium units (B100, B200, B300 and B400) at 1,250 SF each.

The property was acquired in shell condition by the current owners who (as family andfriends) developed the Creekside Business Center (CBC). CBC provides flexible officesolutions for the independent business person or start-up company needing incubatorspace at affordable rates. Individual office suites include WiFi, unique phone numbers, andreceptionist. CBC also offers Virtual office programs with a prestigious Woodlands address(see brochure page 13.)

The owners spared no expense in branding the CBC image. The interior space features highprofile design, modern amenities and top of the line fixtures such as crown molding,etched glass for the conference rooms, kitchen facility and much more.

The opportunity as presented herein is the result of the primary investors deciding to retirewith the other ownership interests (sons and friends) deciding to venture out with theirown business pursuits. As a result, CBC as a business has languished, with no promotion,marketing or management ---a truly rare opportunity for the right suitor.

The ideal candidate would be someone in a 1031 exchange, appreciate the benefits ofowning a small established business that could generate a return on their investment far inexcess of 8% as shown here. Additionally, acquiring the real estate could meet theexchange requirements of the potential investor.

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OFFERING SUMMARY

CHARLOTTE NNN

INVESTMENT OVERVIEW

CHEVRON C-STORE SAM HOUSTON PKWY

OVERVIEW

The investment provides two unique options for the new owner: The investment can besplit in two with the Center being run as a separate business-based enterprise where theowner executes a separate lease (to itself) wherein the real estate now becomes a netleased asset. The owner would then have the option to keep both investments (the Centerand the Net-leased real estate) as separate investments or stabilize the Center and sell it asa going business concern with an underlying long-term lease, or sell the real estate as anet-leased real estate asset and keep the Center. Either way, the numbers work!

Net-Leased real estate investments are highly sought after assets to have as alternativeinvestments. The opportunity being presented here gives a new owner the ability tostructure a sale lease/back which is significant added value for the savvy investor. The 5%vacancy factored into the financial analysis could also be absorbed by the new owner ashis/her office essentially for free.

Absolute net leased assets are a passive type of real estate investment and provide theowner with 100% of expenses being reimbursed to the landlord. Tomball is located inHarris County, and is considered a sub-market of The Woodlands, TX, which is one of themost sought-after markets within the Houston, Texas metroplex area. The property is5,000 SF and consists of four adjoining parcels in an office condominium complex knownas The Preserve Office Park. The Office Park is located on 3.56 acres of landscaped sharedparking which fronts on Kuykendahl Rd. with over 12,000 autos per day passing by the site.The property is directly accessible off Kuykendahl Rd. which is a primary access road andthere are two additional ingress and egress points to the property located on PreserveWay, the site’s ancillary side road.

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OFFERING SUMMARY

CHARLOTTE NNN

INVESTMENT OVERVIEW

CHEVRON C-STORE SAM HOUSTON PKWY

OVERVIEW

While the four units are listed as four separate condominiums, they have been combinedto form a seamless interior for the Creekside Business Center. The Center was designedwith high-end interior finishes, crown moldings, frosted glass conference room enclosurewith costly high-speed internet communication systems for the benefit of 18 suites.

The Center is a complete turnkey ready business operation, with a large conferenceroom, kitchen area, lounge and is currently 73% occupied under 1-years lease terms thatrevert to month to month thereafter which is typical for service center type leases.Interior improvements are estimated to cost in excess of $500,000.

The property is surrounded by a mix of retail power centers, regional and local stripcenters, office and a 5-mile population base of 88,750 residing in upper incomeresidential neighborhoods. The subject property is surrounded by many destination-point retail drivers such as WalMart, Aldis, Icon Bank of Texas, Woodforest bank andmore.

There is a high demand for office/retail flex suites which the property can accommodate,and the many service center users seeking this unique space within the Tomball -Woodlands area bodes well for continued inflationary pressure on rent rates.

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OFFERING SUMMARY

CHARLOTTE NNN

INVESTMENT OVERVIEW

CHEVRON C-STORE SAM HOUSTON PKWY

TAILORD FOR ALL NEEDS

o A fully serviced secure, private office for you and your team. Idealboth as a temporary office solution or for a more permanent office.

o Great as a day office, part-time office, or long term available.

o Staffed reception to greet guests, handle mail, answer calls andhelp with admin tasks.

o Communal kitchen with tea and coffee making facilities.

o Use a shared meeting room by the hour.

o All office cleaning and maintenance included.

o Modern, ergonomic office furniture.

o Access to a printer, scanner and photocopier.

o Use of business lounges and break out areas.

o Phone handsets and lines.

o All utility costs included.

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#

INVESTMENT HIGHLIGHTS

▪ 8.17% CAP RATE YEAR-2 !

▪ INTERIOR HIGH PROFILE DESIGN @$500k TI’s

▪ HIGH QUALITY NEW CONSTRUCTION

▪ EXPANSIVE NATURAL LIGHT

▪ MINIMAL MANAGEMENT

▪ VERY DESIRABLE WOODLANDS AREA LOCATION

▪ BOOMING DEVELOPMENT AREA

▪ FIBER HIGH-SPEED INTERNET

▪ TURN KEY OPERATION

▪ INCLUDES FURNITURE, FIXTURES & EQUIPMENT

INVESTMENT | HIGHLIGHTS

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SITE PLAN

The property is ideally located on Kuykendahl Rd., one of The Woodlands primary transportation arteries which generate in excess of 11,000autos per day. Located in Tomball, TX which borders The Woodlands, a general planned community with above average household income andone of the most sought after neighborhoods within the Houston Metroplex area with a population base in excess of 88,000 that live within a 5-mile radius of the site.

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CREEKSIDE BUSINESS CENTER

SUBJECT

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SITE PLAN

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CREEKSIDE BUSINESS CENTER

LEASED

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CLOSE PROXIMITY TO:

25420 Kuykendahl Rd. – The Preserve Office Park - Tomball, TX 77375

▪ NEW CONSTRUCTION - ENERGY

EFFICIENT

▪ STATE OF THE ART TRANE HVAC

▪ 176 PARKING SPACES - OPEN

▪ HIGH-TECH NEST THREMOSTATS

▪ ABUNDANT NATURAL LIGHTING

▪ CONTEMORARY DESIGN

The design and construction of the property

allows for flexibility i.e., office, medical and

service-retail which makes it a highly

desirable asset to acquire due to the wide

variety of users that it can accommodate.

LOCATION OVERVIEW

Subject .25 Mile

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CBC BROCHURE

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CBC BROCHURE

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PROPERTY PHOTOS

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PROPERTY PHOTOS

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FINANCIAL ANALYSIS

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Summary Operating Data

Price $1,750,000

Down

Payment$700,000 Income Current Pro Forma

Down Payment % 40% Scheduled Base Rental Income $140,400 $216,600

Number of Suites 18 Total Reimbursement Income 0.0% $0 0.0% $0

Price Per SqFt $0.00 Other Income $0 $0

Total Gross

SF0 SF Potential Gross Revenue $140,400 $216,600

Lot Size 3.56 Acres General Vacancy 0.0% $0 0.0% $0

Year Built/Renovated 2014 Effective Gross Revenue $140,400 $216,600

Occupancy Less: Operating Expenses 52.1% ($73,193) 34.0% ($73,560)

Net Operating Income $67,207 $143,040

Returns Current Pro Forma Tenant Improvements $0 $0

CAP Rate 3.84% 8.17% Leasing Commissions $0 $0

Cash-on-

Cash-0.92% 9.91% Capital Expenditures $0 $0

Debt Coverage Ratio 0.91 1.94 Cash Flow $67,207 $143,040

Debt Service ($73,658) ($73,658)

Net Cash Flow After Debt Service -0.92% ($6,451) 9.91% $69,382

Financing 1st Loan Principal Reduction $21,650 $22,758

Loan Amount $1,050,000 Total Return 2.17% $15,199 13.16% $92,140

Loan Type New

Interest Rate 5.00% Operating Expenses Current Pro Forma

Amortization 25 Years CAM $36,671 $37,038

Year Due 2043 Insurance $0 $0

Loan information is subject to change. Contact your Marcus & Millichap Capital Corporation

representative.Real Estate Taxes $32,712 $32,712

Management Fee $3,810 $3,810

Other Expenses - Non Reimbursable $0 $0

Total Expenses $73,193 $73,560

Expenses/Suite $4,066 $4,087

Expenses/SF $0.00 $0.00

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RENT ROLL

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Tenant Name Suite Feet Share Comm. Sq. Ft. Per Month Per Year Per Year on Type

EVM Energy 101 0 0.0% $0.00 $1,050 $12,600 $14,400 Apr-2019 $1,200 Gross

WFL Millturn Tech 102 0 0.0% MM $0.00 $750 $9,000 $9,000 Apr-2019 $1,200 Gross

Dtsal LLC 103 0 0.0% MM $0.00 $700 $8,400 $8,400 Apr-2019 $1,250 Gross

Mi Devolucion LLC 104 0 0.0% MM $0.00 $850 $10,200 $10,200 Apr-2019 $1,100 Gross

Vacant 105 0 0.0% $0.00 $0 $0 $7,200 N/A $600 Gross

Vacant 106 0 0.0% $0.00 $0 $0 $13,200 N/A $1,100 Gross

Studio G 107 0 0.0% MM $0.00 $600 $7,200 $9,600 Apr-2019 $800 Gross

Nuarc Pools 108 0 0.0% MM $0.00 $1,000 $12,000 $13,200 Apr-2019 $1,100 Gross

Jorman 109 0 0.0% MM $0.00 $600 $7,200 $10,800 Apr-2019 $900 Gross

Jorman 110 0 0.0% MM $0.00 $600 $7,200 $10,800 Apr-2019 $900 Gross

Grupo Gin 111 0 0.0% MM $0.00 $1,100 $13,200 $13,800 Apr-2019 $1,150 Gross

Vacant 112 0 0.0% $0.00 $0 $0 $13,800 N/A $1,150 Gross

Studio G 114 0 0.0% MM $0.00 $650 $7,800 $10,200 Apr-2019 $850 Gross

Immunotec 115 0 0.0% MM $0.00 $760 $9,120 $13,200 Apr-2019 $1,100 Gross

Immunotec 116 0 0.0% MM $0.00 $760 $9,120 $15,000 Apr-2019 $1,250 Gross

Immunotec 117 0 0.0% MM $0.00 $760 $9,120 $14,400 Apr-2019 $1,200 Gross

Immunotec 118 0 0.0% MM $0.00 $760 $9,120 $14,400 Apr-2019 $1,200 Gross

Immunotec 119 0 0.0% MM $0.00 $760 $9,120 $15,000 Apr-2019 $1,250 Gross

Total 0 $0.00 $11,700 $140,400 $216,600

% Annual Actual Pro Forma

Square Bldg Lease Dates Rent per Total Rent Total Rent Rent Changes Rent Increase Lease

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FINANCIAL ANALYSIS

OPERATING STATEMENT

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Growth Rates:

Current Pro Forma

1.0% 1.0%

Expenses In Place Current Pro Forma

*Energy $7,200 $7,272 $7,345

*Vonage $3,048 $3,078 $3,109

*Comcast $2,400 $2,424 $2,448

*Accounting $2,400 $2,424 $2,448

Cleaning $7,200 $7,272 $7,345

Other Misc $3,500 $3,535 $3,570

Repairs & Maintenance $10,560 $10,666 $10,772

Real Estate

Taxes$32,712 $32,712 $32,712

Management

Fee$3,810 $3,810 $3,810

Total Expenses $72,830 $73,193 $73,560

NOTES

Notes to Operating Statement

[1] Current rents are far below market for similar type use i.e., REGUS etc. Ihave based pro forma on 18th stabilization.

[2]

I have not added the various revenue streems that are common among businesses such as Creekside Business Center such as, virtual office

leasing where the use is mail drop only, or mail & phone programs (Business Identity).

There are certain similar business ID uses that generate $100 per mth per user. At 120 users just for the ID setup could generate an additional

$144,000 per year in net revenue.

a. There are many ways to generate additional revenue streams through the CBC business platform that have not been factored into the

pricing and should be viewed as an add-value component.

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MARKET

COMPARABLES

TOMBALL – WOODLANDS

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rentpropertyaddress1

rentpropertyname1

rentpropertyaddress1

rentpropertyname1

rentpropertyaddress1

SALES COMPARABLES IN ESCROW COMPARABLES

SUBJECT PROPERTY

Asking Price $1,750,000

Price/SF $350.00

CAP Rate (3.84% Current) 8.17% Pro Forma

GLA 5,000 SF

Lot Size 3.56 acre(s)

Year Built 2014

Lease Term Remaining Owner/User

CREEKSIDE BUSINESS CENTER25420 Kuykendahl Rd. Tomball, TX 77375

1

Close Of Escrow 5/31/2017

Sales Price $800,000

Price/SF $320.00

GLA 2,500 SF

Year Built 1994

4114 Avenue HRosenberg, TX 77471

2

NOTES

Sale / Leaseback

Close Of Escrow 3/1/2017

Days On Market 93

Sales Price $1,650,000

Price/SF $343.75

GLA 4,800 SF

Year Built 1984

1500 Bingle Rd.Houston, TX 77055

SALES COMPARABLES

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rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1

SALES COMPARABLES IN ESCROW COMPARABLES

3

NOTES

Part of a portfolio sale.

Close Of Escrow 3/21/2018

Sales Price $1,900,000

Price/SF $441.86

GLA 4,300 SF

Year Built 1995

1120 Dennis St.Houston, TX 77004

4

NOTES

Mixed use retail/office condo.

Close Of Escrow 12/19/2017

List Price $1,670,000

Price/SF $354.56

GLA 4,710 SF

Year Built 2017

4750 Fairmont PkyPasadena, TX 77504

SALES COMPARABLES

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4

NOTES

Mixed use retail/office condo.

Close Of Escrow

List Price $1,875,,000

Price/SF $312.50

GLA 6,000 SF

Year Built 2005

25219 KUYKENDAHL RD25219 Kuykendahl Rd, Tomball, TX, 77375

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MARKET

OVERVIEW

MARKET OVERVIEW

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MARKET OVERVIEW

HOUSTONOVERVIEW

The Houston metro is located in southeastern Texas and 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.

As local industries have diversified from oil to technology and

healthcare, population growth has sprawled, primarily to the north and

west, sustaining Houston’s position as the fifth-most populated metro in

the nation with more than 6.7 million residents. The city of Houston is

home to nearly 2.3 million residents.

METRO HIGHLIGHTS

CORPORATE GROWTH

Houston will remain a top destination for corporate

relocations due to its business-friendly environment.

Twenty-four 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 10 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

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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 2016 TOTAL EMPLOYMENT

MAJOR AREA EMPLOYERS

Memorial Hermann Healthcare System

University of Texas

The Kroger Co.

ExxonMobil Corp.

Shell Oil Co.

Methodist Hospital System

United Continental Holdings

Baker Hughes Inc.

St. Luke’s Episcopal Health System

Hewlett-Packard* Forecast

MANUFACTURING

8%GOVERNMENT

HEALTH SERVICES

EDUCATION AND

OTHER SERVICES AND MINING

+NATURAL RESOURCES

3%

LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES

21%

AND UTILITIES

TRADE, TRANSPORTATION CONSTRUCTION

PROFESSIONAL AND

BUSINESS SERVICES

5%INFORMATION AND

15%

7%

13% 11% 5%

13%

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MARKET ANALYSIS

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MARKET OVERVIEW

DEMOGRAPHICS

▪ The Houston metro is expected to add more than 500,000 people through 2021 and

roughly 88,000 of these residents will be millennials in the 20- to 34-year-old cohort.

▪ During the same period, nearly 190,100 households will be formed, generating

demand for housing.

▪ The homeownership rate of 62 percent is below the national rate of 64 percent. The

median home price of $222,100 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, along with 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

33.9

2016MEDIAN AGE:

U.S. Median:

37.7

$59,700

2016 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

$54,500

6.7M

2016POPULATION:

Growth2016-2021*:

7.8%

2.3M

2016HOUSEHOLDS:

8.1%

Growth2016-2021*:

QUALITY OF LIFE

2016 Population by Age

0-4 YEARS

8%5-19 YEARS

22%20-24 YEARS

7%25-44 YEARS

29%45-64 YEARS

24%65+ YEARS

10%

SPORTS

EDUCATION

ARTS & ENTERTAINMENT

28

MARKET ANALYSIS

28

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CREATED ON SEPTEMBER 6, 2017

1 Miles 3 Miles 5 Miles

POPULATION

2021 Projection 3,152 57,145 103,853

2016 Estimate 2,562 46,800 88,750

2010 Census 2,041 37,986 73,954

2000 Census 784 11,842 37,779

INCOME

Average $138,843 $147,175 $152,718

Median $96,094 $112,590 $115,913

Per Capita $44,632 $45,482 $50,551

HOUSEHOLDS

2021 Projection 1,011 17,662 34,409

2016 Estimate 823 14,460 29,371

2010 Census 661 11,782 24,512

2000 Census 260 3,750 11,945

HOUSING

2016 $306,919 $328,640 $315,124

EMPLOYMENT2016 Daytime Population

1,696 30,332 71,143

2016 Unemployment 4.63% 4.07% 3.44%

2016 Median Time Traveled

37 40 38

RACE & ETHNICITY

White 89.96% 85.38% 86.56%

Native American 0.20% 0.18% 0.13%

African American 2.10% 2.35% 2.10%

Asian/Pacific Islander

1.78% 5.53% 5.16%

DEMOGRAPHICS

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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;

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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] 832-442-2828Sales Agent/Associate’s Name

_________________________________________________Sales Agent/Associate/s Name

License No.

__________________License No.

Email

_________________________________________Email

Phone

____________________Phone

▪ 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