OAK RUN - LoopNet · 2019. 12. 8. · building is situated on a 1.802 pad site strategically...

Confidential offering memorandum

Retail CenterOAK RUN

1928 W STATE HIGHWAY 46 | NEW BRAUNFELS, TX

TABLE OF CONTENTS3 Confidentiality Agreement & Disclaimer

4 Executive Summary

5 Investment Highlights

9 Financial Overview

12 Location Overview

19 Tenant Overview

23 About JLL

24 Info. About Brokerage Services2 | Oak Run - New Braunfels

The information contained in this Brochure is confidential and is provided for the sole purpose of allowing persons to evaluate whether there is interest in proceeding with

further discussions with the owner regarding a possible transaction with respect to the subject property (the “Property”). The information contained herein shall not be pho-

tocopied or disclosed to any other party and shall not be used for any other purpose. If the person receiving this Brochure does not choose to pursue such a transaction, this

Brochure shall be returned to Jones Lang LaSalle.

Neither the owner, nor Jones Lang LaSalle, nor any of their officers, directors, employees or agents, assume any responsibility or make any representations or warranties,

whether express or implied, by operation of law or otherwise, with respect to the Property or this Brochure or any information or statements (including financial statements

and projections) contained herein or relating hereto, including the accuracy or completeness of such information or statements and the condition, quality or fitness of the

Property. Such information and statements have, in many circumstances, been obtained from outside sources, have not been tested or verified and may be subject to errors

or omissions. Projections, in particular, are based on various assumptions and subjective determinations as to which no guaranty or assurance can be given. Without limiting

the foregoing, in the event this Brochure contains information relating to asbestos or any other hazardous, toxic or dangerous materials in relation to the Property, such infor-

mation shall in no way be construed as creating any warranties or representations, express or implied, by operation of law or otherwise, by any party, as to the existence or

non-existence or nature of such materials in, under, on or around the Property. Potential investors are urged to perform their own examination and inspection of the Property

and information relating to same, and shall rely solely on such examination and investigation and not on this Brochure or any information or materials contained herein or oth-

erwise provided.

The only party authorized to represent the owner of the Property is Jones Lang LaSalle, and the owner shall not be obligated to pay any fees or commissions to any other advi-

sor, broker or representative.

This Brochure is provided subject to prior sale or lease, change of price or terms and other changes to the materials, statements and information contained herein or relating to

the Property, and is subject to withdrawal, all without notice or any liability. In no event shall the delivery or receipt of this Brochure be deemed to create any legal obligation to

enter into any transactions with respect to the Property, and only a definitive agreement signed by all parties shall create a binding commitment to enter into a transaction.

Confidentiality Agreement & Disclaimer

All property showings are by appointment only. Please consult your JLL Agent for more details. 3 | JLL

Exec

utive

Summ

ary

Jones Lang LaSalle Brokerage, Inc. (“JLL”) has been exclusively retained by the Owner (the “Owner”) to offer for sale Oak Run, located at 1928 W. State Highway 46, New Braunfels, Texas 78132.

Oak Run is a newly-constructed 15,068 square foot (GLA) NNN-leased retail center located in New Braunfels, Texas. The building is situated on a 1.802 pad site strategically located along State Highway 46.

Oak Run is 100% leased to 8 retail, service, medical and banking tenants comprised of a mix of corporate and multi-unit operators, offering investors an immediate stabilized cash flow as well as future growth through rental rate increases.

Oak Run is surrounded by dense, established residential neighborhoods and is near the Veramendi master-planned community. Additionally, high visibility and accessibility is provided by the frontage on State Highway 46 (30,321 CPD).

THE OFFERING

4 | Oak Run - New Braunfels

Inves

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t High

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5 | JLL

◊ 100% leased

» Long-term NNN leases

◊ Strong mix of national & multi-unit operators

» Comprised of retail, service, medical and banking uses

◊ Dense residential and daytime population:

» More than 62,694 people within 5 miles

» 32,028 employees within 5 miles

◊ Highway 46 frontage and visibility

» Located on the going-home side of TX-46 (30,321 CPD) with cross-access to Oak Run Parkway

◊ Large monument signage with backlit panels

◊ New Braunfels is the 2nd fastest growing city in the United States (US Census Bureau 2015)

» Population is projected to outpace the national average by more than 4 times in 2021

◊ Major area employers include: H-E-B, WalMart, Home Depot, Caterpillar, Hunter, and Schlitterbahn Waterpark

INVESTMENT HIGHLIGHTS

ADDRESS 1928 W State Highway 46, New Braunfels, TX 78132

CONSTRUCTION YEAR 2018

LOT SIZE ± 1.802 Ac

SQUARE FOOTAGE 15,068 SF

OCCUPANCY 100%

TENANTS 8

PARCEL NUMBER 40-0374-0001-00

PROPERTY DETAILS


SITE SURVEY

7 | JLL

SITE PLAN


Fina

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9 | JLL

PRICING INFO

PRICE

$6,391,923± 6.50% Return

PRO FORMA PER SF

Base Rental Revenue $415,475 $27.57

Expense Reimbursement Revenue $105,476 $7.00

Gross Budgeted Revenue $520,951 $34.57

Projected Gross Revenue

Property Taxes $53,491 $3.55

Property Insurance $6,781 $0.45

Common Area Maintenance (CAM) $45,204 $3.00

Total Estimated Operating Expenses $105,476 $7.00

Annual Expenses

Net Operating Income $415,475 $27.57

CAP Rate 6.50%

The income projection does not provide for all potential costs and expenses that may be incurred by the property owner. Income, expenses, and other financial statements have, in many circumstances, been obtained from outside sources, have not been tested or verified, and may be subject to errors or omissions. Projections, in particular, are based on various assumptions and subjective determinations as to which no guaranty or assurance can be given. Prospective purchasers must make an independent investigation to determine their own estimate of income, costs, and expenses prior to entering into a legally binding contract.

Note

FINANCIAL ANALYSIS

SUITE TENANT SF % OF BLDG

101 Smile Brands Dental (Castle) 2,500 16.59%

102 Frenchies Nail Salon 1,502 9.97%

105 My Salon Suites 4,501 29.87%

110 TSO 3,000 19.91%

111 CPD Plus 722 4.79%

112 9Round 1,643 10.90%

120 Star Brite Cleaners 1,200 7.96%

ATM USAA - -

Total 15,068 100%

Tenant List


RENT ROLL

Suite Tenant Sq. Ft. TermRental

IncreaseDate(s)

Base Rent TI Allowance

RentCommence.

CAM Taxes Insurance Total Exp./ SF

TotalRent

SecurityDeposit

PrepaidRentRate Total $/SF Total $/SF Total $/SF Total

101 Smile Brands Dental

2,500 10 yrs. Yrs. 1 - 5Yrs. 6 - 10

$30.00$33.30

$6,250.00 $65.00 / SF Est. 05/01/2020

$3.00 $625.00 $3.55 $739.58 $0.45 $93.75 $7.00 $7,708.33 - -

102 FrenchiesNailSalon

1,502 10 yrs. Yrs. 1 - 5Yrs. 6 - 10

$28.75$32.75

$3,598.54 $45.00 / SF Est. 05/01/2020

$3.00 $375.50 $3.55 $444.34 $0.45 $56.33 $7.00 $4,474.71 $4,474.71 $4,474.71

105 My SalonSuites

4,501 10 yrs. Yrs. 1 - 2Yrs. 3 - 5Yrs. 6 - 8Yrs. 7 - 10

$22.00$23.00$24.00$25.00

$8,251.83 $40.00 / SF 10/29/2018 $3.00 $1,125.25 $2.60 $975.22 $0.40 $150.03 $6.00 $10,502.33 $8,250.00 $10,500.00

110 TSO 3,000 10 yrs. Yrs. 1 - 5Yrs. 6 - 10

$23.00$25.30

$5,750.00 $35.00 / SF 10/01/2018 $3.00 $750.00 $3.25 $812.50 $0.40 $100.00 $6.65 $7,412.50 $8,287.50 $8,287.50

111 CBD Plus 722 5 yrs.2 mos.

Mos. 1 - 2Mos. 3 - 14Mos. 15 - 26 Mos. 27 - 38Mos. 39 - 50Mos. 51 - 62

-$30.00$31.00$32.00$33.00$34.00

$1,805.00 $15.00 / SF Est. 02/01/2020

$3.00 $180.50 $3.55 $213.59 $0.45 $27.08 $7.00 $2,226.17 $2,466.84 $2,226.17

112 9Round 1,643 10 yrs. Mos. 2 - 12Mos. 13 - 24Mos. 25 - 36 Mos. 37 - 48Mos. 49 - 60Mos. 61 - 72Mos. 73 - 84Mos. 85 - 96Mos. 97 - 108Mos. 109 - 120

$23.50$24.00$24.50$25.00$25.50$26.00$26.50$27.00$27.50$28.00

$3,217.54$3,286.00$3,354.46$3,422.92$3,491.38$3,559.83$3,628.29$3,696.75$3,765.21$3,833.67

$80,000.00 08/12/2019 $3.25 $444.98 $3.35 $458.67 $0.40 $54.77 $7.00 $4,175.96 - -

120 Star BriteCleaners

1,200 5 yrs. Yrs. 1 - 5 $37.50 $3,750.00 $32.00 / SF 10/27/2018 $3.00 $300.00 $3.55 $355.00 $0.45 $45.00 $7.00 $4,450.00 $4,450.00 $4,450.00

ATM USAA 300 10 yrs. Yrs. 1 - 5Yrs. 6 - 10

- $2,000.00 - 09/28/2018 - - - - - - - $2,000.00 - -

Leased 15,068 100%Vacant 0 0%TOTAL 15,068 100%

11 | JLL

Loca

tion

Overv

iew


In the heart of the Texas Hill Country lies the beautiful community of New Braunfels. Refined by old-world German heritage and complemented by an unrivaled quality of life, it’s no wonder this town of 79,152 is visited by more than three million tourists each year and has grown by 88.9% in the last decade.

The city’s strategic location in Central Texas puts it at almost equal distances between the seventh largest city in the U.S. (San Antonio) and the State Capitol (Austin). This opportunistic placement, along with access to a strong education system, an affordable cost of living, a stable economic climate, and a plethora of recreational opportunities, has created an environment people are flocking to. Ranked as the second fastest growing county and 2nd fastest growing city in the nation, the New Braunfels area is experiencing unprecedented growth.

New Braunfels’ astounding beauty and leisure opportunities, coupled with the hospitality of the locals, brings droves of tourists to the community every year. Many come for the beautiful rivers or to visit one of the four top 20 Texas attractions that are located here. Others come for the live music, the festivals, the beautiful downtown and the culture.

Industry is thriving in New Braunfels, Texas despite the weak economy nationally. New Braunfels is in the heart of the Austin-San Antonio Corridor, offering a low-cost, strategic location directly on Interstate 35 and minutes from Interstate 10.

Population growth exceeds the state average giving ever-growing markets. Although have low unemployment, the workforce within commuting distance is over 450,000. City employment has increased 75% since 2003.

Business meters area at all time highs and New Braunfels property valuations increased in 2018 over $7 million since 2003 and rose 6.9% over last year. Since 2003, the increase has been a total of 238%

The New Braunfels community boasts a diverse base of businesses including distribution, manufacturing, data centers, health-care related, and aviation industry. Increasing sales tax revenues allows the city to invest heavily in infrastructure and quality of life assets desired by the current and future talent workforce.

GENERAL OVERVIEWABOUT THE AREA

13 | JLL

AREA DEMOGRAPHICS

1928 W State Highway 46 | New Braunfels, TX 78132

1 MILE 3 MILES 5 MILES

2010 Total Population 3,028 18,999 48,872



2019-2024 Annual Rate 3.27% 2.08% 2.36%

2019 $142,888 $103,903 $90,876

2024 $152,401 $115,459 $103,209

2019 $252,112

2024 $292,437

Population Summary

Average Household Income

Average Home Value

2019 POPULATION

64,452AVG.HOUSEHOLD INCOME

$90,876

Top Area Employers

Comal ISD 2,895

Schlitterbahn Waterpark 2,160

Wal-Mart Distribution Center 1,250

New Braunfels ISD 1,188

City of New Braunfels 812

Sysco 810

Hunter Industries, Ltd. 730

Comal County 681

HD Supple Facilities Maintenance 538

Rush 518

ABOUT THE AREA

SOURCE: New Braunfels Chamber of Commerce (2018)


The subject property is prominently situated at the intersection of Oak Run Parkway and State Highway 46 W (30,321 CPD), with excellent frontage and access. The site is ideally situated near the intersection of TX-46, Loop 337, and Interstate 35, with a combined CPD of 164,444. The site benefits from strong demographics, with a population of more than 64,452 within a five-mile radius and average household income exceeding $90,876. In addition, the subject property is located in a high-growth area, experiencing an annual rate of 3.27% since 2010 and expected to continue to grow over the next ten years.

SITE INFOABOUT THE AREA

15 | JLL

TRADE AERIAL

SITE


MARKET AERIAL

SITE

17 | JLL

LOCATION AERIAL

SITE


Tena

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19 | JLL

TENANT PROFILESWe are 5000 dedicated team members at over 425 affiliated dental offices all focused on a single mission; delivering Smiles For Everyone®. Smiles for patients, providers, employees, community partners. Everyone. Our entire culture is designed to promote WIN-WIN relationships by treating people with respect and pursuing business process excellence that makes it easier to provide great patient care.

At Smile Brands [Castle Dental] we believe culture matters. We believe that happier teams lead to happier patients, and we’ve got the happiest team in the dental industry. The organization has twice been recognized on Glassdoor’s Best Places to Work list – in fact, we are the second highest ranked healthcare provider in the U.S.

Smile Brands [Castle Dental] provides comprehensive business support services through exclusive long term agreements with affiliate dental groups, so dentists can spend more time caring for their patients and less time on the administrative, marketing, and financial aspects of operating a dental practice. The organization was founded in 1998 by a management team that included co-founder and CEO Steve Bilt and CFO Brad Schmidt. Through acquisitions and opening of new dental offices, the Smile Brands has become a dominant player in the dental space with a rapidly growing number of affiliated practices across 17 states. Smile Brands’ primary equity sponsor is Gryphon Investors, a leading private equity investment firm focused on investing in physician-centric healthcare businesses.

Lessee: Smile Brands Dental (Castle Dental)

Website: www.smilebrands.com

Frenchies doesn’t look, smell or feel like a typical nail salon. Our studios are light, open and airy (speaking of air, ours is especially fresh—no acrylics = no nasty chemical smells). We’re super clean. Inviting. And fun in that “I-love-hanging-out-with-these people” kind of way.

Every Frenchies team member is friendly and knowledgeable. Chat us up and we’ll share our healthy nail-care smarts while we get to know you, so we can deliver your most enjoyable nailcare experience ever. Sound too good to be affordable? No worries. Frenchies is posh without the price. Make Frenchies your nail studio and join the revolution today!

At Frenchies Modern Nail Care, we aren’t just clean. We’re ridiculously clean. We’re super serious about the cleanliness and sterilization of our studio and tools because we truly care about the health, well-being, and safety of our guests. We also love our earth. That’s why we go above and beyond industry standards and exceed regulations to guarantee a clean, fresh, comfortable experience that’s kind to our environment.

Lessee: Frenchies Nail Salon

Website: www.frenchiesnails.com

We offer the opportunity for salon entrepreneurs to own their own business without the large upfront costs and risks associated with building and running a salon. Our partners are available to assist you with setting up and running a successful salon business at MY SALON Suite®.

Every MY SALON Suite® location includes private spacious suites that are well appointed with high-end luxury amenities and top-of-the-line salon equipment for different specialties of health and beauty professionals, ranging from hair stylists to nail technicians, massage therapists, spa professionals and skin treatment experts.

Lessee: My Salon Suite

Website: www.mysalonsuite.com


TENANT PROFILESToday, Texas State Optical has provided more Texas families with quality eye care than any other eye care organization. We have earned recognition as the largest single provider for vision benefit plans in Texas so it is likely that a local Doctor of Texas State Optical is a provider for your vision plan.

When you need eye care, the first step is a comprehensive eye examination from a qualified doctor you trust. A well-trained and friendly optician associate will then help you select the eye wear that best fits the way you use your vision. With technology ever-changing we use our vision, it is important that you have regular eye examinations.

Doctors of Texas State Optical are therapeutically licensed to treat many medical eye conditions and practice a full scope of primary, family eye care.

Our mission is to help you see the important things in life. If it’s important to you, it is important your local Texas State Optical doctor and staff.

Lessee: Texas State Optical

Website: www.tso.com

CBD Plus USA offers a variety of self-care and lifestyle products. We are an Oklahoma based company, approaching the national scale. As CBD continues to gain mainstream acceptance and awareness, we hope to continue growing so that we keep up with the needs of our customers.

We are currently growing at a rapid rate with over 80 locations. Each one of our franchisees is an independent business owner utilizing our resources to improve the lives of their unique communities.

CBD Plus USA was founded upon one cornerstone: empowering each customer to live their best life. With this core value guiding us, we have cultivated an environment where hard work, respect, and community flourish as well as quality hemp. Our ultimate goal is to become the authoritative advocate and most trusted source for CBD.

CBD Plus USA’s purpose is to nurture and inspire natural well-being. We craft products that embody simplicity and optimism. Our CBD exceeds the industry standard of quality as we produce carefully extracted, pesticide-free, and non-GMO products. We have a continued commitment to the health of the communities surrounding our franchise locations. Our mission is helping you live your best life.

Lessee: CBS Plus

Website: www.cbdplususa.com

9Round is a specialized fitness center for people who want a unique, fun, and proven workout that guarantees results. 9Round offers a kickboxing themed fitness program that incorporates a functional, interval, cardiovascular, and circuit training regimens. The programs consist of a proprietary system of nine challenging workout stations developed by a World Champion Kickboxer.

Lessee: 9Round

Website: www.9round.com

21 | JLL

TENANT PROFILESStar Brite Cleaners & Laundry uses state-of-the-art dry cleaning equipment and processes for all of your delicate fabrics and other dry cleaning needs!

Hung or folded? Special request? Light, medium, or heavy starch? At Star Brite Cleaners & Laundry our mission is to get your laundry done the way you want it, when you want it, and at a price you can afford!

Raise or lower a hem? Take it in or let it out? Need that french cuff repaired? Every Star Brite Cleaners & Laundry location is well equipped to handle your alteration and mending needs!

Same Day Services – Need it back today? Check you local Starbrite for same day drop-off times!

Leather Cleaning and Treatment – Fine leather apparel requires special skills to care for, and you can trust Star Brite Cleaners & Laundry to treat your leather goods as if they were our own!

Household – Whether you’re getting ready for a special visit or occasion, or it’s just time to get them cleaned, you can trust Star Brite Cleaners & Laundry with all of your household item cleaning needs.

Lessee: Star Brite Cleaners

Website: www.starbritecleanersatx.com

USAA, a diversified financial services group of companies, is among the leading providers of financial planning, insurance, investments and banking products to members of the U.S. military, veterans who have honorably served and their families.

We’ve earned our members’ trust by providing convenient banking, competitively–priced insurance and a comprehensive suite of investment products.

As a USAA member — you’re a person — not a number. Join today and then enjoy our wide range of products and services.

Membership is open for those who serve and their eligible family members.

We welcome you to join USAA if you are: Active duty, Guard or Reserve, a veteran, an eligible family member, or a cadet or midshipman.

Insurance: Get coverage for your car, home, personal belongings and more. Plus, explore our health and life insurance options for you and your family.

Banking: From free checking to competitive home loan rates, see how our bank can support you. USAA Bank also works hard to notify you immediately of fraudulent activity on your accounts.

Investments: Help manage your portfolio with an extensive range of investment products, and set goals to track your progress.

Advice & Tools: Learn more about topics like preparing for deployment or marriage, saving for college and more. Access calculators, budgeting tools, and market insights all in one place.

Lessee: USAA

Website: www.usaa.com


JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. A Fortune 500 company, JLL helps real estate owners, occupiers and investors achieve their business ambitions. In 2017, JLL had revenue of $7.9 billion and fee revenue of $6.7 billion; managed 4.6 billion square feet, or 423 million square meters; and completed investment sales, acquisitions, and finance transactions of approximately $170 billion. At the end of 2017, JLL had nearly 300 corporate offices, operations in over 80 countries and a global workforce of 82,000. As of December 31, 2017, LaSalle had $58.1 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.us.jll.com.

ABOUT JLL

23 | JLL

Jones Lang LaSalle Brokerage, Inc. 591725 [email protected] 214-438-6100

Bradley Stone Selner 399206 [email protected] 214-438-6177

n/a n/a n/a n/a

Timothy Richard Allen 439941 [email protected] 512-368-7179Infor

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1703 W. 5th Street, Suite 850 | Austin, TX 78703

www.us.jll.com/retail

Copyright © Jones Lang LaSalle IP, Inc. 2019

This publication is the sole property of Jones Lang LaSalle and must not be copied, reproduced or transmitted in any form or by any means, either in whole or in part, without the prior written consent of Jones Lang LaSalle. The information contained in this publication has been obtained from sources generally regarded to be reliable. However, no representation is made, or warranty given, in respect of the accuracy of this information. We would like to be informed of any inaccuracies so that we may correct them. Jones Lang LaSalle does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance on this publication. Jones Lang LaSalle Americas, Inc., California license # 01223413. Jones Lang LaSalle Americas, Inc. License # 19262.

Any opinion or estimate of value of any asset in this presentation is based upon the high-level preliminary review by JLL. It is not the same as the opinion of value in an appraisal developed by a licensed appraiser under the Uniform Standards of Professional Appraisal Practice. JLL expressly disclaims any liability for any reliance on any opinion or estimate of value in this presentation by any party.

Contact Information

Tim AllenSenior Vice President+1 512 368 [email protected]

OAK RUN - LoopNet · 2019. 12. 8. · building is situated on a 1.802 pad site strategically...

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