Section 1...4 DEMOGRAPHICS 1 MILE 3 MILES 5 MILES Total Households 1,604 27,637 60,774 Total...

2

PROPERTY INFORMATION 3

LOCATION INFORMATION 7

FINANCIAL ANALYSIS 12

SALE COMPARABLES 16

RENT COMPARABLES 21

DEMOGRAPHICS 26

ContentsConfidentiality & DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictlyconfidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichapand should not be made available to any other person or entity without the written consent ofMarcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverifiedinformation to prospective purchasers, and to establish only a preliminary level of interest in thesubject property. The information contained herein is not a substitute for a thorough duediligence investigation. Marcus & Millichap has not made any investigation, and makes nowarranty or representation, with respect to the income or expenses for the subject property, thefuture projected financial performance of the property, the size and square footage of theproperty and improvements, the presence or absence of contaminating substances, PCB's orasbestos, the compliance with State and Federal regulations, the physical condition of theimprovements thereon, or the financial condition or business prospects of any tenant, or anytenant’s plans or intentions to continue its occupancy of the subject property. The informationcontained 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 containedherein, nor has Marcus & Millichap conducted any investigation regarding these matters andmakes no warranty or representation whatsoever regarding the accuracy or completeness of theinformation provided. All potential buyers must take appropriate measures to verify all of theinformation set forth herein.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant orlessee identified in this marketing package. The presence of any corporation’s logo or name is notintended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporationof Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commerciallisting of Marcus & Millichap, and is solely included for the purpose of providing tenant lesseeinformation about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS

Modern City Shops4501 W Expressway 83, McAllen, TX 78503

TABLE OF CONTENTS

Section 1 PROPERTY INFORMATION

4

DEMOGRAPHICS 1 MILE 3 MILES 5 MILES

Total Households 1,604 27,637 60,774

Total Population 5,309 88,869 193,281

Average HH Income $63,070 $59,119 $60,265

PROPERTY OVERVIEW

Marcus & Milichap is pleased to offer the opportunity to acquire a stabilized 13,000-square foot, multi-tenant retail center

in McAllen, Texas. Modern City Shops is strategically located on the city's primary east-west freeway in a major retail trade

area servicing the densely populated surrounding community.

OFFERING SUMMARY

Sale Price: $3,800,000

Building Size: 13,000 SF

Lot Size: 1.23 Acres

Price / SF: $292.31

Cap Rate: 7.66%

NOI: $291,045

Year Built: 2016


PROPERTY INFORMATION | EXECUTIVE SUMMARY

5

PROPERTY DESCRIPTION

Marcus & Millichap is pleased to offer the opportunity to acquire a 13,000-square foot,

multi-tenant retail center in McAllen, Texas. Modern City Shops is 100 percent leased, and

all leases are triple net. The center is a complementary mix of internet-resistant tenants,

consisting of BurgerFi, Texas Federal Wellness Center, Venus MedSpa, and Sooth Dental.

Constructed in 2016, the building is situated on a 1.23-acre lot with ample concrete parking.

LOCATION DESCRIPTION

The subject property is located in the dense retail trade area in the region and adjacent to

Interstate 2 (US Expressway 83), with traffic counts exceeding 100,000 vehicles per day.

Numerous national and regional tenants are in the area, including Starbucks, Academy

Sports & Outdoors, Tilted Kilt Pub, Cracker Barrel, Homewood Suites, SpringHill Suites, Best

Buy, McAlister’s Deli, Buffalo Wild Wings, Babies ‘R Us, DSW, Chuck E Cheese’s, Cavender’s

Boot City, Cheddar’s Scratch Kitchen, Saltgrass Steak House, Gold’s Gym, Cinemark

Tinseltown, Kohl’s, Walmart Supercenter, Target, Office Depot, TJ Maxx, Five Below, H-E-B

and many others. Additionally, the subject property is located just minutes from the McAllen

Convention Center, the newly constructed Performing Arts Center, McAllen International

Airport, South Texas College’s main campus with over 31,000 students and faculty, McAllen

Medical Center, and La Plaza Mall. Densely populated, the surrounding area has over

193,281 residents within a five-mile radius of the property.

McAllen is the largest city in Hidalgo County, located at the southern tip of Texas in the Rio

Grande Valley, the fifth most populated area in the state. McAllen is a vibrant metro area

and a major center for retail, international trade, tourism and manufacturing. Every year,

thousands of winter Texans arrive to the Rio Grande Valley, during the mild fall and winter

seasons, adding more than $710 million into the local economy. Additionally, the

Reynosa-McAllen Metropolitan Area has a population of roughly 1,500,000.


PROPERTY INFORMATION | PROPERTY DESCRIPTION

6

BUILDING INFORMATION

Occupancy % 100.0%

Tenancy Multiple

Year Built 2016

Ownership Type Fee Simple

County Hidalgo

PROPERTY HIGHLIGHTS

• 13,000-Square Foot, Multi-Tenant Retail Center

• Building is Newer 2016 Construction with a 10-Year Roof Warranty

• 100% Occupied | All Leases are NNN

• Complementary Mix of Internet-Resistant Tenants

• Current Average Rents are Below Market

• Texas Federal Wellness Recently Completed a Renovation Exceeding $550,000 |

Improvements Include the Construction of a Pool and Sauna, Custom Cabinetry, Water-

Resistant Suspended Ceiling and Wet Wall, and New Ductwork

• Freeway Location on US Expressway 83 (Interstate 2) | Traffic Counts in Front of the

Property Exceed 106,000 Vehicles per Day

• Located in Region's Most Dense Retail Trade Area

• Densely Populated Area with More than 193,281 Residents Within a Five-Mile Radius

• Located in the McAllen-Edinburg-Mission MSA | Retail Hub of the Rio Grande Valley

• Also Part of the Reynosa-McAllen Metropolitan Area, Serving a Population of Roughly

1.5 Million

• Assumable Financing In Place with a Partial Recourse Guaranty


PROPERTY INFORMATION | COMPLETE HIGHLIGHTS

Section 2 LOCATION INFORMATION

8

Modern City Shops


LOCATION INFORMATION | REGIONAL MAP


LOCATION INFORMATION | AERIAL MAPS

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Section 3 FINANCIAL ANALYSIS

PRICING - CURRENT LIST PRICE

Price $3,800,000

Down Payment 43% / $1,636,100

First Trust Deed/Mortgage $2,163,900

Interest Rate/Amortization 4.77% / 25 Yrs.

Net Operating Income $291,045

CASH FLOW ANALYSIS

Debt Service ($157,670)

Debt Coverage Ratio 1.85

Net Cash Flow After Debt Service $133,375

Cash-on-Cash Return % 8.15%

Principal Reduction $54,782

Total Return $188,157

Total Return % 11.50%

VALUE INDICATORS

CAP Rate 7.66%

Price/SF $292.31

EXISTING FINANCING - LOAN ASSUMPTION

Lender Name Symetra Life Insurance Company

Interest Rate 4.77%

Amortization Period 25 Years

Loan Maturity Date November 15, 2042

Loan Balance (Estimated as of June 15, 2020) $2,163,900

Current Monthly P&I Payment $13,139.17

Assumption Fee (1) 1%

(1) Buyer shall pay an Assumption Fee equal to 1.00% of the Principal Balance and any Lender fees associated with the loan assumption

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FINANCIAL ANALYSIS | PRICING - CURRENT

INCOME SUMMARY CURRENT PER SF

Base Rent $306,043 $23.54

Expense Reimbursements $81,155 $6.24

Gross Income $387,198 $29.78

EXPENSE SUMMARY CURRENT PER SF

Real Estate Taxes $47,843 $3.68

Insurance $10,760 $0.83

Landscaping $2,400 $0.18

Repairs & Maintenance $7,500 $0.58

Utilities $13,000 $1.00

Janitorial $1,500 $0.12

Pest Control $500 $0.04

Administrative Expense $650 $0.05

Management Fee $12,000 $0.92

Gross Expenses $96,153 $7.40

Net Operating Income $291,045 $22.39

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FINANCIAL ANALYSIS | INCOME & EXPENSES

TENANTNAME

UNITSIZE (SF)

% OFGLA

LEASESTART

LEASEEND

ANNUALRENT

PRICEPER YEAR

LEASETYPE OPTION

EXPENSEREIMBURSEMENT

BurgerFi (1) 3,020 23.23 4/01/17 3/31/27 $90,600 $30.00 NNN (3) 5-Yr $12,684.00

Texas Federal Wellness Center 5,560 42.77 7/01/19 6/30/24 $106,752 $19.20 NNN (3) 5-Yr $41,124.64

Venus MedSpa (2) 1,440 11.08 6/28/18 6/30/23 $27,475 $19.08 NNN (2) 3-Yr $6,048.00

Sooth Dental 2,880 22.15 9/15/17 9/30/22 $81,216 $28.20 NNN (3) 5-Yr $21,297.89

Mechanical Room 100 0.77 $0 $0.00

Totals/Averages 13,000 $306,043 $23.54 $81,154.53

(1) Tenant has a Cap on NNN Reimbursements of $4.20 per square foot for the first five lease years. Beginning 4/01/2022, Tenant will begin paying their full pro rata share of NNN Reimbursements. BurgerFihas a Right of First Refusal.

(2) Tenant has a Cap on NNN Reimbursements of $4.20 for the first three years of the lease. Beginning on 7/01/2021, Tenant will begin paying their full pro rata share of NNN Reimbursements.

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FINANCIAL ANALYSIS | RENT ROLL

Section 4 SALE COMPARABLES

SUBJECT PROPERTY

4501 W Expressway 83 | McAllen, TX 78503

$3,800,000Sale Price: 1.23 ACLot Size:

2016Year Built: 13,000 SFBuilding SF:

$292.31Price PSF: 7.66%Cap:

$291,045NOI:

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STONE OAK CENTER

3701 West Expressway 83 | McAllen, TX 78503



$389.99Price PSF: 6.5%CAP:

03/20/2019Closed: 100%Occupancy:

AT&T, Five Guys, Kato Sushi

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2

SHOPS ON LOOP 20

10719 McPherson Road | Laredo, TX 78045





AT&T, James Avery, Market Barbeque

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SALE COMPARABLES | SALE COMPS

3

PLAZA VIEJO

7470-7490 Padre Island Boulevard | Brownsville, TX 78521





Pizza Patron, Fred Loya, Cato

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4

MISSION PLAZA

2310 East Expressway 83 | Mission, TX 78572





WingStop, Siempre Natural, A-1 Cleaners, 9Round, Taqueria El Enfiernito

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SALE COMPARABLES | SALE COMPS

SUBJECT PROPERTY PRICE BLDG SF PRICE/SF CAP

Modern City Shops

4501 W Expressway 83

McAllen, TX 78503

$3,800,000 13,000 SF $292.31 7.66%

SALE COMPS PRICE BLDG SF PRICE/SF CAP CLOSE

Stone Oak Center3701 West Expressway 83

McAllen, TX 78503

$3,375,000 8,654 SF $389.99 6.5% 03/20/2019

Shops on Loop 2010719 McPherson Road

Laredo, TX 78045

$6,100,000 10,000 SF $610.00 7.25% 04/20/2018

Plaza Viejo7470-7490 Padre Island Boulevard

Brownsville, TX 78521

$1,539,000 17,900 SF $85.98 7.32% 08/12/2019

Mission Plaza2310 East Expressway 83

Mission, TX 78572

$2,675,000 11,040 SF $242.30 7.41% 05/22/2019

PRICE BLDG SF PRICE/SF CAP CLOSE

Totals/Averages $3,422,250 11,899 SF $287.61 7.12%

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2

3

4

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SALE COMPARABLES | SALE COMPS SUMMARY

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1 STONE OAK CENTER3701 West Expressway 83McAllen, TX 78503

2 SHOPS ON LOOP 2010719 McPherson RoadLaredo, TX 78045

3 PLAZA VIEJO7470-7490 Padre IslandBoulevardBrownsville, TX 78521

4 MISSION PLAZA2310 East Expressway 83Mission, TX 78572

4501 W Expressway 83 | McAllen, TX 78503SUBJECT PROPERTY


SALE COMPARABLES | SALE COMPS MAP

Section 5 RENT COMPARABLES

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1SHARYLAND TOWNE CROSSING2427-2519 E Expressway 83 | Mission, TX 78572

$26.00 SF/YRLease Rate: NNNLease Type: 4,850 SFSpace Size:

2006Year Built: 201,738 SFBldg Size: 37.72 AcresLot Size:

97.6%Occupancy:

Target, H-E-B, Office Depot, Carter's, Five Below, Sally Beauty Supply

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2STONE OAK PLAZA3701 West Expressway 83 | McAllen, TX 78503

$29.05 SF/YRLease Rate: NNNLease Type: SFSpace Size:


100%Occupancy:

2

SUBJECT PROPERTY4501 W Expressway 83 | McAllen, TX 78503

$23.50 SF/yr (NNN)Lease Rate: NNNLease Type: 0 SFSpace Size:

2016Year Built: 1.23 AcresLot Size: No. Units:

Modern Shops on 83 is a newly constructed, 13,000-square foot multi-tenant retail center in McAllen, Texas. The center is 90 percent leased, and all current leases are triple net. Tenantsconsist of BurgerFi, Evera Lounge, Trim Med Spa and Floss Dental. Constructed in 2016, the building is situated on 1.23 acres.


RENT COMPARABLES | RENT COMPS

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3PALMS CROSSING3300 W 83 Expressway | McAllen, TX 78501



78.1%Occupancy:

Barnes & Noble, Torrid, Sport Clips, La Costa Grill, GameStop, Ben & Jerry's

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4SHARYLAND TOWNE CROSSING2521 E Expressway 83 | Mission, TX 78572



70%Occupancy:

CiCi's Pizza, Which Which

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RENT COMPARABLES | RENT COMPS

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SUBJECT PROPERTY PRICE/SF/YR AVAILABLE SF BLDG SF OCCUPANCY %

Modern City Shops4501 W Expressway 83

McAllen, TX 78503

$23.50 SF/yr (NNN) 0 SF 13,000 SF 100.0%

RENT COMPS PRICE/SF/YR AVAILABLE SF BLDG SF OCCUPANCY %

1

Sharyland Towne Crossing2427-2519 E Expressway 83

Mission, TX 78572

$26.00 4,850 SF 201,738 SF 97.6%

2

Stone Oak Plaza3701 West Expressway 83

McAllen, TX 78503

$29.05 - 8,654 SF 100%

3

Palms Crossing3300 W 83 Expressway

McAllen, TX 78501

$29.50 5,741 SF 41,820 SF 78.1%

4

Sharyland Towne Crossing2521 E Expressway 83

Mission, TX 78572

$36.00 2,700 SF 9,100 SF 70%

PRICE/SF/YR AVAILABLE SF BLDG SF OCCUPANCY %

TOTALS/AVERAGES $30.14 4,430 SF 65,328 SF 86.43%


RENT COMPARABLES | RENT COMPS SUMMARY

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1 SHARYLAND TOWNECROSSING2427-2519 E Expressway 83Mission, TX 78572

2 STONE OAK PLAZA3701 West Expressway 83McAllen, TX 78503

3 PALMS CROSSING3300 W 83 ExpresswayMcAllen, TX 78501

4 SHARYLAND TOWNECROSSING2521 E Expressway 83Mission, TX 78572

4501 W Expressway 83 | McAllen, TX 78503SUBJECT PROPERTY


RENT COMPARABLES | RENT COMPS MAP

Section 6 DEMOGRAPHICS

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POPULATION 1 MILE 3 MILES 5 MILES

Total Population 5,309 88,869 193,281

Median age 33.1 35.4 34.9

Median age (Male) 32.2 34.1 33.6

Median age (Female) 33.9 36.7 36.1

HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES

Total households 1,604 27,637 60,774

# of persons per HH 3.2 3.1 3.1

Average HH income $63,070 $59,119 $60,265

Average house value $91,030 $108,000 $110,855

ETHNICITY (%) 1 MILE 3 MILES 5 MILES

Hispanic 90.8% 88.8% 87.9%

RACE 1 MILE 3 MILES 5 MILES

% White 95.9% 95.9% 95.5%

% Black 0.9% 1.0% 1.1%

% Asian 2.1% 1.9% 2.0%

% Hawaiian 0.1% 0.1% 0.1%

% American Indian 0.6% 0.7% 0.6%

% Other 0.4% 0.6% 0.7%

* Demographic data derived from CoStar Realty Information Group


DEMOGRAPHICS | DEMOGRAPHICS MAP & REPORT

INFORMATION ABOUT BROKERAGE SERVICES Texas 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; • 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 subagent can 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.

Information available at www.trec.texas.gov Regulated by the Texas Real Estate Commission IABS 1-0

11-2-2015

Licensed Broker /Broker Firm Name or Primary Assumed Business Name License No. Email Phone

Designated Broker of Firm License No. Email Phone

Licensed Supervisor of Sales Agent/Associate License No. Email Phone

Sales Agent/Associate’s Name License No. Email Phone

Buyer/Tenant/Seller/Landlord Initials Date

Marcus & Millichap 9002994 [email protected] 972-755-5200

Tim A. Speck 432723 [email protected] 972-755-5200

Section 1...4 DEMOGRAPHICS 1 MILE 3 MILES 5 MILES Total Households 1,604 27,637 60,774 Total...

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