RED WING SHOES - InvestCore...

Exclusively Offered By:

Michael Campbell 619.546.0122 [email protected] CA Lic #01843521

Ed Colson, Jr. CCIM 619.546.0121 [email protected] Lic #01382996 | TX Lic #635820

RED WING SHOES106 West Highway 332, Lake Jackson, TX 77566

InvestCoreCommercial.com

NO

LA

N R

YA

N E

XP

Y (4

2,0

00

CPD

)

SUBJECT PROPERTY

BRAZOS MALL - A 680,000 SF REGIONAL MALL

HWY 332 (21,600 CPD)

2 | Red Wing Shoes - Lake Jackson, TX

InvestCore Commercial presents this Offering which

has been prepared by InvestCore Commercial for use

by a limited number of parties and does not purport

to provide a necessarily complete summary of the

Property or any of the documents related thereto, nor

does it purport to be all-inclusive or to contain all of

the information which prospective investors may need

or desire. All projections have been developed by

InvestCore Commercial, the Owner, and designated

sources and are based upon assumptions relating to

the general economy, competition, and other factors

beyond the control of the Owner and, therefore, are

subject to variation. No representation is made by

InvestCore Commercial or Owner as to the accuracy or

completeness of the information contained herein, and

nothing contained herein is, or shall be relied on as, a

promise or representation as to the future performance

of the Property. Although the information contained

herein is believed to be correct, Owner and its employees

disclaim any responsibility for inaccuracies and expect

prospective purchasers to exercise independent due

diligence in verifying all such information. Further,

InvestCore Commercial, Owner, and its employees

disclaim any and all liability for representations and

warranties, expressed and implied, contained in, or for

omission from, this Investment Offering or any other

written or oral communication transmitted or made

available to the recipient. This Offering does not constitute

a representation that there has been no change in the

business or affairs of the Property or the Owner since

the date of preparation of the package. Analysis and

verification of the information contained in this package

is solely the responsibility of the prospective purchaser.

Additional information and an opportunity to inspect the

Property will be made available upon written request to

interested and qualified prospective investors.

Owner and InvestCore Commercial each expressly

reserve the right, at their sole discretion, to reject any

and all expressions of interest or offers regarding the

Property and/or terminate discussions with any entity

at any time with or without notice. Owner shall have no

legal commitment or obligation to any entity reviewing

this Offering or making an offer to purchase the Property

unless and until a written agreement for the purchase

of the Property has been fully executed, delivered,

and approved by Owner and its legal counsel, and any

conditions to Owner’s obligations thereunder have

been satisfied or waived. InvestCore Commercial is not

authorized to make any representations or agreements

on behalf of Owner.

This Offering and the contents, except such information

which is a matter of public record or is provided in sources

available to the public (such contents as so limited herein

are called the “Contents”), are of a confidential nature.

By accepting the package, you agree (i) to hold and

treat it in the strictest confidence, (ii) not to photocopy or

duplicate it, (iii) not to disclose the package or any of the

contents to any other entity (except to outside advisors

retained by you, if necessary, for your determination of

whether or not to make a proposal and from whom you

have obtained an agreement of confidentiality) without

the prior written authorization of Owner or InvestCore

Commercial, (iv) not use the package or any of the

contents in any fashion or manner detrimental to the

interest of Owner or InvestCore Commercial, and (v) to

return it to InvestCore Commercial immediately upon

request of InvestCore Commercial or Owner.

If you have no further interest in the Property, please

return this Investment Offering forthwith.

OFFERING STATEMENT / DISCLAIMER

InvestCore Commercial, Inc. 3910 W. Point Loma Blvd, Suite B

San Diego, CA 92110


TABLE OF CONTENTS

INVESTMENT SUMMARY 4

Executive Summary

Investment Highlights

PROPERTY DESCRIPTION 6

Street Map

Aerials

Sales Comps

AREA OVERVIEW 10

About Lake Jackson

About Houston MSA

Demographics


Tenants:The Mulvaney Whittington Partnershipdba Red Wing Shoes

Guarantor: Randy Mulvaney and FRM, Inc.

Address: 106 West Highway 332, Lake Jackson, TX 77566

Building Size: 2,500 SF

Land Size: 15,098 SF

Year Built / Remodeled: 1984 / 2016

Rent Commencement: April 6, 2016

Lease Expiration: April 30, 2023

Options: One (1) 5-year option

Lease Type: Fee Simple NNN Land & Building

Landlord Responsibilities: None, including roof and structure

Rent Increases: See rent schedule

RENT SCHEDULE:

EXECUTIVE SUMMARY

OFFERING TERMS

Price: $1,180,000

Cap Rate: 6.05%

Net Operating Income: $71,400

INVESTMENT SUMMARY

Term Years Date of Increase Monthly Rent Annual Rent % Increase

Primary 1-3 $5,950.00 $71,400

Primary 4-7 5/2019 $6,587.50 $79,050 10.71%

Option 8-12 5/2024 $7,437.50 $89,250 12.90%


INVESTMENT SUMMARY

INVESTMENT HIGHLIGHTS

Lake Jackson’s Major Retail Corridor

• The subject property is ideally located in the heart of Lake Jackson’s retail corridor with numerous national tenants in a one block radius including Home Depot, Lowe’s, WalMart, Academy Sports, Target and others.

Outparcel to Brazos Mall

• Red Wing Shoes sits at the entrance to Brazos Mall, a 682,831 SF regional mall anchored by AMC movie theater, Ross, Dillards and numerous other national retailers

High Traffic Counts

• Easy access to Highway 288, the major North-South highway in Lake Jackson with nearly 40,000 cars per day and direct access to Houston

• Red Wing Shoes benefits from its location on W. Highway 332 with 27,490 cars per day passing by the property

Below Market Rent, Upside Opportunity

• There is tremendous security, and potential upside at $71,400 annual rent. Red Wing Shoes is paying significantly lower rent than other tenants within the same center (see enclosed Sales Comp data)’

• In the event Red Wing Shoes does not renew their lease in 6 years, an investor will have the ability to increase their overall return and value of the property by releasing to a national credit tenant who would love to be in this vibrant trade retail corridor

New Lease

• Red Wing Shoes just signed a brand-new lease last year, providing an investor nearly 6 years on the primary term plus a 5-year option thereafter

Strong Growth and High Incomes

• Between 2016 to 2021, population within the one mile radius is expected to grow by 2.21% annually, a significant increase compared to 1.63% in the State and 0.84% nationally.

• Households are expected to grow by 2.27% annually compared to 1.58% in the State and 0.79% nationally.

• Average household incomes in 2016, in the 3-mile radius, were $91,178.


PROPERTY DESCRIPTION

STREET MAP



AERIAL

NO

LA

N R

YA

N E

XP

Y (4

2,0

00

CP

D)

HWY 332 (21,600 CPD)

SUBJECT PROPERTY



AERIAL

NO

LA

N R

YA

N E

XP

Y (4

2,0

00

CPD

)

SUBJECT PROPERTY

BRAZOS MALL - A 680,000 SF REGIONAL MALL

HWY 332 (21,600 CPD)


PROPERTY DESCRIPTIONSALES COMPS

Property Name Property Address Property City Property State Sale Date Asking/ Sale Price Cap Rate Net Income Bldg SF Rent PSF Price PSF Land Area SF

Red Wing Shoes (Subject Property) 106 W Highway 332 Lake Jackson TX Available $1,180,000 6.05 $71,400 2,500 $28.56 $472 15,098

Panda Express Ground Lease * 102 W TX-332 Lake Jackson TX 8/31/15 $1,980,000 5.00 $99,000 2,448 $40.44 $809 32,234

Starbucks * 104 W TX-332 Lake Jackson TX 8/31/15 $1,730,000 5.25 $90,753 2,028 $44.75 $853 22,084

Verizon Wireless * 115 Highway 332 W Lake Jackson TX 2/5/16 $3,358,490 5.50 $184,717 4,372 $42.25 $768 17,128

Aldi 206 Highway 332 E Lake Jackson TX 9/23/16 $4,487,000 5.35 $246,750 23,500 $10.50 $191 84,214

Red Lobster 104 Tx-332 Lake Jackson TX 7/15/16 $3,040,000 5.50 $167,200 7,500 $22.29 $405 52,533

Raising Cane’s * 200 Highway 332 E Lake Jackson TX 5/2/16 $4,405,000 6.00 $264,300 2,724 $97.03 $1,617 20,072

Wells Fargo Bank 102 Brazos Mall Lake Jackson TX 3/14/17 2,400 17,031

AVERAGE 5.43 $175,453 $42.88 $774

*Denotes asking price, not sales price

RED WING SHOES

VERIZON WIRELESS

STARBUCKS

PANDA EXPRESS

RED LOBSTER

ALDI

WELLS FARGO BANK

RAISING CANE’S


The City

Lake Jackson is a beautiful, family-

friendly city with a vibrant economy.

We are situated next to one of North

America’s largest petrochemical

complexes and located just 50 miles

south of Houston.

Lake Jackson is strategically located

within miles of a deep-water port, a major

railroad connection, the Texas Gulf Coast

Regional Airport, and State Highway 288.

Community Highlights

• Home of the Dow Texas Innovation

Center and Texas Dow Employee

Credit Union (TDECU)

• Regional shopping hub with a 680,000

SF shopping mall (Brazos Mall)

• One of North America’s largest

petrochemical complex, which

includes various sites for Down

Chemical and BASF Corporation

• Heritage Bank expands in Lake

Jackson

AREA OVERVIEW

ABOUT LAKE JACKSON

The Development Corporation

The Lake Jackson Development

Corporation (LJDC) was formed in 1995

and its mission is to use proactive

strategies and all available resources to

promote economic growth and market

Lake Jackson as the premier city to live,

work, and play.

The Development Corporation focuses

on achieving its mission through actively

participating in the following activities:

• Encouraging an Entrepreneurial Spirit

• Marketing Lake Jackson

• Promoting Quality of Life

• Attracting Primary Jobs

Community Recognition & Rankings

• 1st Place Keep America Beautiful

Awards (4 Times)

• 4th Best Golf Course in Texas and 41st

in the US

• 9th Best Texas City for Finding Jobs

• Top 10 Community College

• 15th Best City for Texas Families

• 19th Safest City in Texas


AREA OVERVIEW

ABOUT HOUSTON MSA

Houston is the fourth-largest city in the U.S.,

and the largest city in the state of

Texas. According to the 2010 U.S.

Census, the city had a population

of 2.1 million people within an area

of 656.3 square miles. Houston

is the seat of Harris County and the economic

center of Houston–Sugar Land–Baytown, the

fifth-largest metropolitan area in the U.S. with

over 6 million people.

Houston was founded in 1836 on land near the

banks of Buffalo Bayou. It was incorporated as

a city on June 5, 1837, and named after then-

President of the Republic of Texas—former

General Sam Houston—who had commanded

and won at the Battle of San Jacinto, which

took place 25 miles (40 km) east of where the

city was established. The burgeoning port and

railroad industry, combined with oil discovery

in 1901, has induced continual surges in the

city’s population. In the mid-twentieth century,

Houston became the home of the Texas Medical

Center—the world’s largest concentration

of healthcare and research institutions—and

NASA’s Johnson Space Center, where the

Mission Control Center is located.

Rated as a global city, Houston’s economy has a

broad industrial base in energy, manufacturing,

aeronautics, and transportation. It is also

leading in health care sectors and building

oilfield equipment; only New York City is home

to more Fortune 500 headquarters. The Port

of Houston ranks first in the United States in

international waterborne tonnage handled

and second in total cargo tonnage handled.

The city has a population from various ethnic

and religious backgrounds and a large and

growing international community. It is home to

many cultural institutions and exhibits, which

attract more than 7 million visitors a year to the

Museum District. Houston has an active visual

and performing arts scene in the Theatre District

and offers year-round resident companies in all

major performing arts.

EDUCATION

Seventeen school districts exist within the city

of Houston. The Houston Independent School

District (HISD) is the seventh-largest school

district in the United States. HISD has 112

campuses that serve as magnet or vanguard

schools—specializing in such disciplines as

health professions, visual and performing arts,

and the sciences. There are also many charter

schools that are run separately from school

districts. In addition, some public school districts

also have their own charter schools.

The Houston area encompasses more than 300

private schools, many of which are accredited by

Texas Private School Accreditation Commission

recognized agencies. The Houston Area

Independent Schools offer education from a

variety of different religious as well as secular

viewpoints. The Houston area Catholic schools

are operated by the Archdiocese of Galveston-

Houston

Four separate and distinct state universities are

located in Houston. The University of Houston

is a nationally recognized Tier One research

university, and is the flagship institution of the

University of Houston System. The third-largest

university in Texas, the University of Houston

has nearly 40,000 students on its 667 acre

campus in southeast Houston. The University

of Houston–Clear Lake and the University

of Houston–Downtown are stand-alone

universities; they are not branch campuses of


the University of Houston. Located in the historic

community of Third Ward is Texas Southern

University, one of the largest historically black

colleges and universities in the United States.

Several private institutions of higher learning—

ranging from liberal arts colleges to Rice

University, the nationally recognized research

university—are located within the city. Rice, with

a total enrollment of slightly more than 6,000

students, is widely recognized as one of the

top twenty universities in the nation, and it has

a number of distinguished graduate programs

and research institutes such as the James A.

Baker Institute for Public Policy. The university’s

undergraduates are among the most select in

the nation.

Three community college districts exist

with campuses in and around Houston. The

Houston Community College System serves

most of Houston. The northwestern through

northeastern parts of the city are served by

various campuses of the Lone Star College

System, while the southeastern portion of

Houston is served by San Jacinto College.

The Houston Community College and Lone

Star College systems are within the 10 largest

institutions of higher learning in the United

States.

ECONOMY

Houston is recognized worldwide for its

energy industry—particularly for oil and natural

gas—as well as for biomedical research and

aeronautics. Renewable energy sources—wind

and solar—are also growing economic bases in

Houston. The ship channel is also a large part

of Houston’s economic base. Because of these

strengths, Houston is designated as a global

city by the Globalization and World Cities Study

Group and Network and by global management

consulting firm A.T. Kearney.

The Houston area is a leading center for building

oilfield equipment. Much of Houston’s success

as a petrochemical complex is due to its busy

man-made ship channel, the Port of Houston.

The port ranks first in the United States in

international commerce, and is the tenth-largest

port in the world. Unlike most places, high oil

and gasoline prices are beneficial for Houston’s

economy as many of its residents are employed

in the energy industry.

The Houston–Sugar Land–Baytown MSA’s

gross domestic product in 2010 was $385

billion, larger than Austria’s, Argentina’s or

South Africa’s GDP. Only 21 countries other

than the United States have a gross domestic

product exceeding Houston’s regional gross

area product. Mining, which in Houston consists

almost entirely of exploration and production of

oil and gas, accounts for 26.3% of Houston’s

GAP, up sharply in response to high energy

prices and a decreased worldwide surplus of oil

production capacity; followed by engineering

services, health services, and manufacturing.

ABOUT HOUSTON MSA

AREA OVERVIEW


AREA OVERVIEW

DEMOGRAPHICSExecutive SummaryRed Wing Shoes 2 Prepared By Ed Colson Jr., CCIM106 W TX-332, Lake Jackson, Texas, 77566 Latitude: 29.04795Rings: 1, 3, 5 mile radii Longitude: -95.45895

1 mile 3 miles 5 milesPopulation

2000 Population 5,639 29,555 45,7922010 Population 5,768 30,369 47,5252016 Population 6,370 32,951 51,1062021 Population 7,107 35,751 55,1762000-2010 Annual Rate 0.23% 0.27% 0.37%2010-2016 Annual Rate 1.60% 1.31% 1.17%2016-2021 Annual Rate 2.21% 1.64% 1.54%2016 Male Population 48.9% 48.9% 50.3%2016 Female Population 51.1% 51.1% 49.7%2016 Median Age 36.3 38.0 36.4

In the identified area, the current year population is 51,106. In 2010, the Census count in the area was 47,525. The rate of change since 2010 was 1.17% annually. The five-year projection for the population in the area is 55,176 representing a change of 1.54% annually from 2016 to 2021. Currently, the population is 50.3% male and 49.7% female.

Median Age

The median age in this area is 36.3, compared to U.S. median age of 38.0.Race and Ethnicity

2016 White Alone 81.1% 81.5% 77.0%2016 Black Alone 5.7% 6.1% 8.2%2016 American Indian/Alaska Native Alone 0.4% 0.5% 0.6%2016 Asian Alone 5.6% 3.4% 2.6%2016 Pacific Islander Alone 0.0% 0.1% 0.0%2016 Other Race 4.6% 5.6% 8.6%2016 Two or More Races 2.6% 2.8% 2.8%2016 Hispanic Origin (Any Race) 23.8% 23.9% 32.3%

Persons of Hispanic origin represent 32.3% of the population in the identified area compared to 17.9% of the U.S. population. Persons of Hispanic Origin may be of any race. The Diversity Index, which measures the probability that two people from the same area will be from different race/ethnic groups, is 66.2 in the identified area, compared to 63.5 for the U.S. as a whole.

Households2000 Households 2,175 10,662 16,1112010 Households 2,443 11,585 17,3332016 Total Households 2,718 12,579 18,6902021 Total Households 3,041 13,648 20,2122000-2010 Annual Rate 1.17% 0.83% 0.73%2010-2016 Annual Rate 1.72% 1.33% 1.21%2016-2021 Annual Rate 2.27% 1.64% 1.58%2016 Average Household Size 2.33 2.61 2.66

The household count in this area has changed from 17,333 in 2010 to 18,690 in the current year, a change of 1.21% annually. The five-year projection of households is 20,212, a change of 1.58% annually from the current year total. Average household size is currently 2.66, compared to 2.66 in the year 2010. The number of families in the current year is 13,413 in the specified area.

Data Note: Income is expressed in current dollarsSource: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2016 and 2021. Esri converted Census 2000 data into 2010 geography.

June 05, 2017

©2016 Esri Page 1 of 2


DEMOGRAPHICSExecutive SummaryRed Wing Shoes 2 Prepared By Ed Colson Jr., CCIM106 W TX-332, Lake Jackson, Texas, 77566 Latitude: 29.04795Rings: 1, 3, 5 mile radii Longitude: -95.45895

1 mile 3 miles 5 milesMedian Household Income

2016 Median Household Income $65,250 $75,768 $63,8072021 Median Household Income $76,229 $82,017 $73,7312016-2021 Annual Rate 3.16% 1.60% 2.93%

Average Household Income

2016 Average Household Income $82,760 $91,178 $81,7432021 Average Household Income $89,704 $98,138 $87,9392016-2021 Annual Rate 1.62% 1.48% 1.47%

Per Capita Income2016 Per Capita Income $34,221 $34,840 $30,4872021 Per Capita Income $37,059 $37,492 $32,7632016-2021 Annual Rate 1.61% 1.48% 1.45%

Households by IncomeCurrent median household income is $63,807 in the area, compared to $54,149 for all U.S. households. Median household income is projected to be $73,731 in five years, compared to $59,476 for all U.S. households

Current average household income is $81,743 in this area, compared to $77,008 for all U.S. households. Average household income is projected to be $87,939 in five years, compared to $84,021 for all U.S. households

Current per capita income is $30,487 in the area, compared to the U.S. per capita income of $29,472. The per capita income is projected to be $32,763 in five years, compared to $32,025 for all U.S. households Housing

2000 Total Housing Units 2,433 11,563 17,7592000 Owner Occupied Housing Units 1,250 7,691 10,5622000 Renter Occupied Housing Units 924 2,971 5,5492000 Vacant Housing Units 259 901 1,648

2010 Total Housing Units 2,714 12,413 19,1452010 Owner Occupied Housing Units 1,341 8,091 11,3922010 Renter Occupied Housing Units 1,102 3,494 5,9412010 Vacant Housing Units 271 828 1,812

2016 Total Housing Units 3,043 13,544 20,7002016 Owner Occupied Housing Units 1,371 8,429 11,7562016 Renter Occupied Housing Units 1,348 4,150 6,9342016 Vacant Housing Units 325 965 2,010

2021 Total Housing Units 3,401 14,680 22,3432021 Owner Occupied Housing Units 1,514 9,047 12,5682021 Renter Occupied Housing Units 1,527 4,601 7,6442021 Vacant Housing Units 360 1,032 2,131

Currently, 56.8% of the 20,700 housing units in the area are owner occupied; 33.5%, renter occupied; and 9.7% are vacant. Currently, in the U.S., 55.4% of the housing units in the area are owner occupied; 32.9% are renter occupied; and 11.7% are vacant. In 2010, there were 19,145 housing units in the area - 59.5% owner occupied, 31.0% renter occupied, and 9.5% vacant. The annual rate of change in housing units since 2010 is 3.53%. Median home value in the area is $155,742, compared to a median home value of $198,891 for the U.S. In five years, median value is projected to change by 3.08% annually to $181,248.

Data Note: Income is expressed in current dollarsSource: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2016 and 2021. Esri converted Census 2000 data into 2010 geography.

June 05, 2017

©2016 Esri Page 2 of 2

AREA OVERVIEW


Before working with a real estate broker, you should know that the duties of a

broker depend on whom the broker represents. If you are a prospective seller

or landlord (owner) or a prospective buyer or tenant (buyer), you should know

that the broker who lists the property for sale or lease is the owner’s agent. A

broker who acts as a subagent represents the owner incooperation with the

listing broker. A broker who acts as a buyer’s agent represents the buyer. A

broker may act as an intermediary between the parties if the parties consent in

writing. A broker can assist you in locating a property, preparing a contract or

lease, or obtaining financing without representing you. A broker is obligatedby

law to treat you honestly.

IF THE BROKER REPRESENTS THE OWNER

The broker becomes the owner’s agent by entering into an agreement with the

owner, usually through a written-listing agreement, or by agreeing to act as a

subagent by accepting an offer of subagency from the listing broker.A subagent

may work in a different real estate office. A listing broker or subagent can assist

the buyer but does not represent the buyer and must place the interests ofthe

owner first. The buyer should not tell the owner’s agent anything the buyer

would not want the owner to know because an owner’s agent must disclose to

the owner any material information known to the agent.

IF THE BROKER REPRESENTS THE BUYER

The broker becomes the buyer’s agent by entering into an agreement to

represent the buyer, usually through a written buyer representation agreement.

A buyer’s agent can assist the owner but does not represent the owner and

must place the interests of the buyer first. The owner should not tell a buyer’s

agent anything the owner would not want the buyer to know because a buyer’s

agent must disclose to the buyer any material information known to the agent.

IF THE BROKER ACTS AS AN INTERMEDIARY

A broker may act as an intermediary between the parties if the broker complies

with The Texas Real Estate License Act.The broker must obtain the written consent

of each party to the transaction to act as an intermediary. The written consent must

state who will pay the broker and, inconspicuous bold or underlined print, set forth

the broker’s obligations as an intermediary. The broker is required totreat each party

honestly and fairly and to comply with The Texas Real Estate License Act. A broker

who acts as an intermediary in a transaction:

(1) shall treat all parties honestly;

(2) may not disclose that the owner will accept a price less than the asking price

unless authorized inwriting to do so by the owner;

(3) may not disclose that the buyer will pay a price greater than the price

submitted in a written offer unless authorized in writing to do so by the buyer; and

(4) may not disclose any confidential information or any information that a party

specifically instructs the broker in writing not to disclose unless authorized in writing

to disclose the information or required to do so by The Texas Real Estate License Act

or a court order or if the information materially relates to the condition of the property.

With the parties’ consent, a broker acting as an intermediary between the parties

may appoint a person whois licensed under The Texas Real Estate License Act and

associated with the broker to communicate with and carry out instructions of one

party and another person whois licensed under that Act and associated with the

broker to communicate with and carry out instructions of the other party.

If you choose to have a broker represent you, you should enter into a written

agreement with the broker that clearly establishes the broker’s obligations and your

obligations. The agreement should state how and by whom the broker will be paid.

You have the right to choose the type of representation, if any, you wish to receive.

Your payment of a fee to a broker does not necessarily establish that the broker

represents you. If you have any questions regarding the duties and responsibilities of

the broker, you should resolve those questions before proceeding.

INFORMATION ABOUT BROKERAGE SERVICES

RED WING SHOES - InvestCore...

Documents

Transcript of RED WING SHOES - InvestCore...