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1 1 JARED AUBREY Senior Vice President +1 214 252 1031 [email protected] MICHAEL AUSTRY Vice President +1 214 252 1115 [email protected] EXCLUSIVE MARKETING ADVISORS CDM RESOURCE MANAGMENT 300 EL RANCHO WAY | DILLEY, TX 78017 JOHNNY DUNN Senior Associate +1 214 252 1175 [email protected]

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Page 1: CDM RESOURCE MANAGMENT - images1.loopnet.com · TENANT OVERVIEW CDM Resource Management, LLC is a nationally-known and awarded company providing natural gas treating and compression

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JARED AUBREYSenior Vice President+1 214 252 [email protected]

MICHAEL AUSTRYVice President+1 214 252 [email protected]

EXCLUSIVE MARKETING ADVISORS

CDM RESOURCE MANAGMENT300 EL RANCHO WAY | DILLEY, TX 78017

JOHNNY DUNNSenior Associate+1 214 252 [email protected]

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INVESTMENT HIGHLIGHTS

Mission Critical Location – Located in the Eagle Ford Shale of the Western Gulf Basin, the second most prolific oil region in the United States in overall oil production, per rig production and DUC well count

Strong tenant – CDM Resource Management LLC was founded in 1998 and is one of the largest 3rd party providers of compression services in the oil & gas industry. USA Compression Partners, LP (NYSE: USAC) acquired CDM Resource Management for $1.7 Billion in 2018.

Compression is Critical Midstream Infrastructure – There is projected to be an increasing natural gas demand for the foreseeable future. Compression is largely gas price agnostic, driven by production volumes and the need to move gas

Quick Access to Rail & Major Highways – Located on Texas HWY 85 and only 1.2 Miles from I-35. Union Pacific has a rail line directly through Dilley, connecting San Antonio and Laredo

Ease of Ownership – Passive NN+ lease on a 2014 building with 2% annual increases and options to renew

Texas has no state income tax

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PROPERTY SUMMARY

PRICE: $1,777,777CAP RATE: 9.32%

PRICE/SF: $253.97

NET OPERATING INCOME (NOI) $165,612

YEAR BUILT 2014

GROSS LEASABLE AREA (GLA) 7,000 SF

LOT SIZE 4.96 ACRES

LEASE TERM 10 YEARS

LEASE TYPE NN+

REMAINING TERM 5 YEARS

OPTIONS TWO, 5-YEAR OPTIONS

300 EL RANCHO WAYDILLEY, TX 78017

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PROPERTY AERIAL

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PROPERTY LOCATION

300 EL RANCHO WAYDILLEY, TX

CDM RESOURCE MANAGMENT

75 MILES

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FINANCIALS

You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.

PRICE: $1,777,777PRICE/SF: $254

OFFERING SUMMARY

NET OPERATING INCOME (NOI) $165,612

YEAR BUILT 2014

GROSS LEASABLE AREA (GLA) 7,000 SF

LOT SIZE 4.96 ACRES

GRADE LEVEL DOORS 5

SPRINKLERED NO

CLEAR HEIGHT 18'

LEASE SUMMARY

LEASE TERM 10 YEARS

LEASE COMMENCEMENT 9/1/2014

LEASE EXPIRATION 8/30/2024

REMAINING TERM 5.0 YEARS

LEASE TYPE NN+

ROOF & STRUCTURE LANDLORD

INCREASES 2% ANNUALLY

OPTIONS TWO 5-YEAR OPTIONS

OPTIONS TO PURCHASE NONE

ANNUALIZED OPERATING DATA

YEARS COMMENCEMENT ANNUAL RENT INCREASE

CURRENT 9/1/2019 $165,612 -

*YEAR 7 9/1/2020 $168,924 2.00%

YEAR 8 9/1/2021 $172,296 2.00%

YEAR 9 9/1/2022 $175,740 2.00%

YEAR 10 9/1/2023 $179,256 2.00%

*Tenant has termination right with payment of $216,383

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POPULATION (2019)1 MILE 12,3913 MILES 85,1175 MILES 276,4707 MILES 598,838

HOUSEHOLDS (2019)1 MILE 5,4843 MILES 37,2325 MILES 111,7297 MILES 233,335

AVG HH INCOME (2019)1 MILE $88,9543 MILES $89,1995 MILES $74,5997 MILES $70,289

ANNUAL POPULATION GROWTH RATE (1 MILE)2010-2019 0.76%2019-2024 0.81%

TRAFFIC COUNTS (VPD)I-35 12,189HWY 85 1,479

DEMOGRAPHICS

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DOMESTIC NATURAL GAS SUPPLY & DEMAND GROWTH

2017 2020 2030 2040 2050

20

40

60

80

100

120

140

Residential

Transportation

Exports LNG

Commercial

Power

Industrial

Exports Mexico

Source: U.S. Energy Information Administration, Annual Energy Outlook 2018, February 2018[1] Converted from TCF, on a 360 day/year basis

80

95

107112

117

PROJECTED NATURAL GAS DEMAND (BCF/D)(1)

~20% GROWTH OVER 3 YEARS

Exports to Mexico: + Growing power needs to be met by US shale gas

+ ~3 Bcf/d to Mexico by 2020

LNG Exports: + ~8 Bcf/d by 2020; 15 Bcf/d by 2040

Power: + ~30 Bcf/d by 2040

+ Coal plant retirements expected to continue

Industrial Demand: + ~35 Bcf/d by 2040

+ Petrochemical plants (Gulf Coast, NE) driving demand

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TENANT OVERVIEW

CDM Resource Management, LLC is a nationally-known and awarded company providing natural gas treating and compression services. CDM uses their patented Modular Quick-Connect (MCQ) technology and fleet of Gas Engines and Aerial Compressors in excess of 1.6 Million horsepower to serve producers bothoffshore and across major shale plays. The company was acquired in 2018 by USA Compression Partners, LP.

YEAR FOUNDED 1997

HEADQUARTERS Houston, TX

PARENT COMPANY USA Compression Partners, LP

EMPLOYEES 500

LOCATIONS 28

WEBSITE www.usacompression.com

CDM RESOURCE MANAGEMENT

CDM has been awarded and recognized on a national level for excellence in Environmental Stewardship and Health and Safety. The Company has a guarantee for 100% safety and 98% more monthly runtime for all contracts. This includes pre-emissions testing, regularly scheduled preventative maintenance, and first call response.

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TENANT OVERVIEW

CDM HP GROWTH

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

CDM HP Growth

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TENANT OVERVIEW

YTD STOCK PERFORMANCEUSA COMPRESSION PARTNERS, LP

12

13

14

15

16

17

18

19Current: $16.9712 Mo Open: $13.6612 Mo Low: $12.4212 Mo High: $18.9512 Mo % Change: 24.23%

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DISCLAIMERSCBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and fa-cilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary du-ties owed to the client(s) it represents in the transaction described in this Memorandum.

This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.

This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the “Owner”), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CBRE, Inc. There-fore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other mate-rials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested par-

ties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner.

Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.

The Owner expressly reserved the right, at its sole discretion, to reject any or all ex-pressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.

By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.

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EXCLUSIVE MARKETING ADVISORS

CDM RESOURCEMANAGEMENT300 EL RANCHO WAYDILLEY, TX 78017

JARED AUBREYSenior Vice President+1 214 252 [email protected]

MICHAEL AUSTRYVice President+1 214 252 [email protected]

JOHNNY DUNNSenior Associate+1 214 252 [email protected]