HOUSTON BOUTIQUE · 2020. 6. 22. · Property Snapshot # ADDRESS CITY TYPE (SIZE) SF OCCUPIED BUILT 1 650 FM 517 Rd W Dickinson Retail 22,745 84.0% 2008 2 17300 El Camino Real Houston

H O U S T O N B O U T I Q U E

Properties are Offered as a Portfolio & on an Individual Basis

OFFICE & RETAIL PORTFOLIO

Bay Colony Center II

Prosperity Business Center

Devon Off ice Park


Devon Off ice ParkBay Colony Center II



E X C L U S I V E M A R K E T I N G A DV I S O R S

D E B T & S T R U C T U R E D F I N A N C E

MATT BERRY

First Vice President

713 577 1640

[email protected]

DREW REINKING

Senior Financial Analyst

713 577 1579

[email protected]

ROBBIE KILCREASE

Vice President

713 577 1657

[email protected]

LAUREN MCGINNITY

Transaction Analyst

713 577 1746

[email protected]

JOHN FENOGLIO

Executive Vice President

713 787 1911

[email protected]

EXECUTIVE SUMMARY 4

BAY COLONY CENTER II 10

DEVON OFFICE PARK 16

PROSPERITY BUSINESS CENTER 22

TABLE OF CONTENTS

© 2020 CBRE, Inc. All Rights Reserved.

DEVON OFFICE PARK

1 Building26,735 SF (28%)

Mo. 1 Occupancy 77%

BAY COLONY CENTER II

1 Building22,745 SF (24%)

Mo. 1 Occupancy 84%

PROSPERITY BUSINESS CENTER

8 Buildings45,980 SF (48%)

Mo. 1 Occupancy 78%

PORTFOLIO10 Buildings

95,460 SF79.8% Occupied

CBRE, as exclusive advisor, is pleased to present to a limited number of qualified investors the opportunity to acquire a 100% fee-simple interest in the Houston Boutique Office & Retail Portfolio (the “Portfolio”). Comprising three multi-tenant office and retail properties, the Portfolio totals more than 95,000 square feet and features excellent diversity in terms of location, lease maturity and tenant mix. The 79.8% leased Portfolio offers investors the opportunity to significantly increase returns through mark-to-market rents and the lease up of vacant space.

The Portfolio features high-quality underlying real estate with an excellent mixture of specialized regional and local tenants who value the maximized space, functionality, and security offered by smaller scale properties. The assets are diversified not only through property type and tenant line-up, but also through GLA, location, and average rents. Aside from the value-add opportunity, these assets require minimal capital expenditures moving forward, as more than $500K in capital improvements were recently completed.

T H E O P P O R T U N I T Y

E X E C U T I V E

S U M M A R Y

Properties are Offered as a Portfolio & on an Individual Basis

5H O U S T O N B O U T I Q U E P O R T F O L I O4

Property Snapshot

# ADDRESS CITY TYPE (SIZE) SF OCCUPIED BUILT

1 650 FM 517 Rd W Dickinson Retail 22,745 84.0% 2008

2 17300 El Camino Real Houston Office 26,735 77.3% 1984

3 2611 FM 1960 Rd W Houston Office 45,980 78.1% 1983

Total/Avg. 95,460 79.8%

BAY COLONY CENTER II


1

DEVON OFFICE PARK


2

PROSPERITY BUSINESS CENTER


3

Net Rentable Area 95,460

Occupancy 79.8%

Year Built 2008 / 1984 / 1983

# of Properties 3

PORTFOLIO SUMMARY I N V E S T M E N T H I G H L I G H T SDIVERSIFIED TENANCY• Portfolio is comprised of two office properties

and one retail property, representing 76% and 24% of the GLA, respectively

• The properties are well-positioned to weather the economic storm of Covid-19, with a dynamic tenant mix ranging from private medical practices, law firms and insurance companies, to local plumbing and beauty businesses that will remain largely uninterrupted by the pandemic

SECURITY OF CASH FLOW• No single lease represents more than 12%

of the portfolio’s total square footage, with the average lease representing 1.2% of the Portfolio’s total square footage.

Current Number of tenants 66

Total Square Footage 95,460

Total Occupied Square Footage 79,675

Average Tenant Square Footage 1,170

Average Annual NOI per Tenant as a % 1.56%

SIGNIFICANT IN-PLACE RETURN PROFILE WITH VALUE ENHANCEMENT OPPORTUNITIES

» Levered Cash on Cash Returns of 15.73%

» Lease up of 15,785 vacant square feet

» Mark-to-market rent opportunity

» With the onset of the Covid-19 Pandemic, office landlords are seeing a departure from traditional office buildings to boutique office parks, primarily due to direct access, sanitation, and lower population density

6 7H O U S T O N B O U T I Q U E P O R T F O L I O

BIGGER IS NOT ALWAYS BETTER

The Boutique Office Space Trend» From startups and tech giants to old-school local firms, businesses are rethinking the role

of office space. When the Covid-19 pandemic hit, and along with it, the enforced work-from-home orders, many companies realized they could operate with less than half the amount ofoffice space. Instead of a sprawling, capital-intensive footprint, more work can be done virtuallywith a scaled-down office home base.

» Architecture firms are anticipating that offices may no longer be places where individualscongregate to do their work in parallel, but visit sometimes to collaborate. The result will be areduction of square footage and companies considering the benefits of smaller satellite offices.

» Small floor plates that allow smaller tenants to have full floor offices with direct access,while larger tenants are able to occupy the whole building instead of just a handful of floors.Companies are also looking for office spaces on the ground floor — to avoid having to use anelevator.

» Trends have pointed to an imminent mass migration of millennials out of the cities to thesuburban communities where they plan to raise families. Companies with downtown realestate could follow this rush to the suburbs, where space is plentiful and social distancing ismuch easier to enforce.

Sources: Marker, CNBC, Biznow

1 Mile 3 Mile 5 Miles

2019 Population 11,980 127,425 307,311

2024 Population 13,167 137,864 331,514

2010-2019 Population Growth 22.5% 14.3% 14.3%


Posperity Business Park


2019 Population 12,701 71,757 196,236

2024 Population 13,967 75,946 209,372



Devon Office Park


2019 Population 9,731 36,634 105,402

2024 Population 10,901 40,614 116,194



Bay Colony Center II

FASTEST GROWING SUBMARKETS IN HOUSTON According to the U.S. Census Bureau, the Houston-The Woodlands-Sugar Land MSA ranked second among the nation’s metros for numeric growth between 2010-2019, increasing by 1,145,654 or 19.4%. Similarly, the average population growth within a 3-mile radius of each property was 17.3% during the same period, outpacing some of Houston’s most popular suburbs including Sugar Land and Tomball.

NEW MANAGEMENT KEEPING COSTS DOWN, LEASING UPRecent new management is providing positive momentum for the Portfolio, including several new leases and a significant reduction in operating expenses.

New management is optimizing the value of the

assets by maximizing operational performance

and enriching tenant experiences

RECENT CAPITAL IMPROVEMENTSSeller has recently spent well over $500K on other capital improvements in the last few years, including new roofs on the two office properties.


B A Y C O L O N Y C E N T E R I I650 FM 517 RD W | DICKINSON, TEXAS

Southeast Outlier Retail Submarket

10 DFW OFFICE PORTFOLIO10 DFW OFFICE PORTFOLIO 1111

OVERVIEWLocated less than a mile from Interstate 45 in Dickinson, Texas, Bay Colony Center II is strategically positioned between

Houston and Galveston. The property is 84% occupied, boasting a diverse e-commerce resistant tenant line-up specializing

industries ranging from childcare to beauty to insurance.

Just twenty miles south of Downtown Houston, the area boasts a strong economic base being home to much of the

regions aerospace (NASA), petrochemical and medical industry. Rapid residential growth coupled with booming economic

development have made Dickinson and the surrounding cities, collectively known as the “Bay Area,” has spurred national

recognition for the region. Dickinson Economic Development Corp. is currently in the planning stages of developing Gulf

Coast Public Market, a $12 million project that will feature a market, outdoor public gathering area, splash pad and small,

locally owned businesses across 4 acres.

INVESTMENT HIGHLIGHTS + Booming Southeast Houston Location | Less than 1 Mile from Interstate 45

+ Cross Access with Adjacent Shopping Centers

+ Value Creation Through the Leaseup of 3,642 SF of Vacant Space

+ Enhanced Access and Visibility to more than 52,000 Vehicles Per Day

+ Affluent, High-growth Demographics with Household Incomes Exceeding $104K


FARM TO MARKET 517 RD W - 32,484 VPD

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S I T E P L A NASSET PROFILE

Property Name: Bay Colony Center II

Address: 630 FM 517 Rd WDickinson, TX 77539

Net Rentable Area: 22,745

Leased: 84.0%

Land Area: 1.99 AC

Year Built: 2008

Parking Spaces: 131

Parking Ratio: 5.76/1,000 SF

GCAD ParcelParcel # Legal Description Acreage

434566 DICKINSON CROSSING (2006) ABST 19, LOT B, ACRES 1.987 1.9870

Total: 1.9870

Traffic CountsFM 517: 32,484

FM 646: 19,648

Total: 52,132

Ingress / EgressThe Property is accessible via two (2) primary access points located along

FM 517, as well several cross access points with the adjacent retail centers.

ZoningCity of Dickinson: Neighborhood

Commercial District

Site plans are intended for guidance only


Demographic Snapshot

5-Mile Population

105,4023-Mile Business Count

3,0243-Mile Population Growth

29%3-Mile Household Income

$104,142

POPULATION 1-MILE 3-MILE 5-MILE

2019 Population - Current Year Estimate 9,731 36,634 105,402

2024 Population - Five Year Projection 10,901 40,614 116,194



2019 Daytime Population 7,074 29,145 79,823

HOUSEHOLDS

2019 Households - Current Year Estimate 3,433 12,805 37,011

2024 Households - Five Year Projection 3,834 14,169 40,765

2010-2019 Household Growth 18.4% 27.5% 22.1%


HOUSEHOLD INCOME

2019 Average Household Income $105,018 $104,142 $104,880


HOME VALUE

2019 Average Home Value $237,880 $242,798 $238,710

PLACE OF WORK

2019 Businesses 243 1,115 3,024

2019 Employees 2,542 11,193 28,574

DEMOGRAPHIC PROFILE

B A Y C O L O N YC E N T E R I I


1717

OVERVIEWThe two-story 26,735 square foot property is 77% occupied, offering tenants single/multiple offices or retail spaces featuring

conferencing facilities, ample parking and monument signage. Positioned at the signalized intersection of El Camino Real

and East Medical Center Boulevard, the Devon Office Park benefits from the high visibility and ease of access afforded by

its hard corner location.

The Property’s close proximity to the affluent and high-growth neighborhoods of Webster and Clear Lake, coupled with the

amenities afforded by the dense retail developments on Bay Area Boulevard, make it well suited for professional use. This

is exemplified by the area’s average household income and dense population, which exceed $107,000 and 196,000 within a

five-mile radius, respectively.

INVESTMENT HIGHLIGHTS + Bolster Cash Flow Through Leaseup of 6,072 Square Feet

+ Located on a Hard Corner at the Signalized Intersection of El Camino Real and E Medical Center Blvd.

+ Monument Sign with Exposure to Nearly 38,000 Vehicles Per Day

+ Approximately 1 Mile from the Houston Space Center and NASA | 1 Million Visitors Annually

+ Divserse Tenant Lineup | 15% of Tenants Boast Tenure of 18 Years or More

+ $200K in Recent Capital Improvements | New Roof and Fully Remodeled Upstairs

D E V O N O F F I C E P A R K17300 EL CAMINO REAL | HOUSTON, TEXAS

NASA/Clear Lake Off ice Submarket

16 DFW OFFICE PORTFOLIODFW OFFICE PORTFOLIO16 17H O U S T O N B O U T I Q U E P O R T F O L I O

Suite 112ADr. William Braden

Suite 101ADr. Joseph McCollum

Suite 102Farmers - Frickey

Suite 104AJulie Scalise

Suite 104BVacant

Suite 105APamela Shirley

Suite 106Razz Ma Tazz

Suite 103Bay Area

Dermatology

Suite 110El Camino Real LTD

Suite 109Robert Gibbs

Second FloorSuite 112B

Farmers - Pistone

Suite 101BAdvanced Medical Tech.

Suite 105BCrossman Ventures

Suite 106Razz Ma Tazz



Suite 107BCtr. for Mind Body

Suite 107AJoseph Wallack

Cow

Bayou

E MEDICAL CENTER BLVD - 12,463 VPD

EL CA

MIN

O REA

L - 25,529 VPD

S I T E P L A NASSET PROFILE

Property Name: Devon Office Park

Address: 17300 El Camino Real Houston, TX 77058


Leased: 77.3%

Number of Stories: 2

Average Suite Size: 861

Land Area: 1.55 AC

Year Built: 1984

Parking Spaces: 103


HCAD ParcelParcel # Legal Description Acreage

0402110000033 TR 1W ABST 13 S DEEL 1.5451

Total: 1.5451

Traffic CountsEl Camino Real: 25,529

E Medical Center: 12,463

Total: 37,992


El Camino Real and E Medical Center Blvd.

ZoningCity of Webster: C3-Third

Commercial District



D E V O N O F F I C E P A R K


5-Mile Population



11.3%5-Mile Household Income

$107,971







HOUSEHOLDS





HOUSEHOLD INCOME



HOME VALUE


PLACE OF WORK

2019 Businesses 1,328 4,420 7,549

2019 Employees 13,937 63,508 91,075

DEMOGRAPHIC PROFILE


P R O S P E R I T Y B U S I N E S S C E N T E R2611 FM 1960 RD W | HOUSTON, TEXAS

FM 1960/Champions Off ice Submarket

22 DFW OFFICE PORTFOLIO22 DFW OFFICE PORTFOLIO 2323

OVERVIEWProsperity Business Center offers 45,980 square feet of leasable area on a 3.43 acre parcel located at the entry to the affluent

Northgate Forest development. Constructed in 1983, the business park consists of several one and two-story buildings with

a variety of floor plans and premier amenities like after hours secured access, signage exposure to FM 1960, and even wood

burning fireplaces in certain suites.

Northgate Forest is a 440-acre master-planned residential golf community located just 18 miles north of downtown

Houston, and 13 miles west of Bush Intercontinental Airport. While offering a beautiful setting, home prices range from the

reasonable $200-$300’s to the several million for large golf-course lots. Slightly rolling terrain, gorgeous homes, first-class

golf courses, and proximity to everything make Champions/1960 one of Houston’s most well-planned, elegant, and vibrant

neighborhoods in the Houston MSA.

INVESTMENT HIGHLIGHTS + Designated Traffic Light to Serve Property | Exposure to Nearly 84,000 Vehicles Per Day

+ Value Add Opportunity Through Leaseup of Nearly 11,000 SF & Below Market Rents

+ Coveted Location Near Northgate Forest Master-Planned Community

+ Unique Boutique Office Experience | Secured Access | Quality Construction and Finishes

+ Densely Populated with more than 307,000 Residents in 5-Mile Radius | 14% Growth Since 2010

+ Diverse, E-Commerce Resistant Tenant Mix

+ $300K in Recent Capital Improvements Including Gates, Cameras Security, and Signage


ASSET PROFILE

Property Name: Prosperity Business Center

Address: 2611 FM 1960 West Houston, TX 77068


Leased: 78.1%

Number of Stories: 1-2

Average Suite Size: 975

Land Area: 3.43 AC

Year Built: 1983

Parking Spaces: 152


HCAD ParcelParcel # Legal Description Acreage

0421160000030 TR 4A-1 ABST 255 J EHRHARDT 3.4265

Total: 3.4265

Traffic CountsFM 1960 Rd W: 53,195

Kuykendahl Rd: 30,569

Total: 83,764


FM 1960 Rd.

ZoningNo Zoning Restrictions in

Harris County FRITZ OAKS PL

FM 1

960

RD W

- 5

3,19

5 VP

D Building A

Suite 100Suite 100

Suite 100

Suite 200

Suite 201

Suite 202

Suite 203A

Suite 203B

Suite 220

Suite 221

Suite 222

Suite 223

Suite 101

Suite 102

Suite 103

Suite 104

Suite 120

Suite 121

Suite 122

Suite 101

Suite 100

Suite 100

Suite 200

Suite 201

Suite 202

Suite 203

Suite 204

Suite 205

Suite 220

Suite 221

Suite 222

Suite 223

Suite 225

Suite 226

Suite 101

Suite 101 Suite 100

Suite 102

Suite 103

Suite 104

Suite 105

Suite 120

Suite 121

Suite 124

Suite 125

Suite 100

Suite 100

Suite 101

Suite 102

Suite 101

Suite 101Suite 102

Building E Building H

Build

ing

F

Building F2nd Floor

Building H2nd Floor

Building G

Build

ing

B

Build

ing

D

Building C

SUITE TENANT SF EXP DATEA100 Level It Up Hair Salon Salon 850 7/31/2024

A101 Cultured Realty 2,212 1/31/2025

A102 Richard F Pfirman 1,231 MTM

B100 Promenade Healthcare LLC 1,560 3/31/2024

B101 Alluring Locz 1,470 11/30/2021

C100 JJ Gradoni and Assoc Inc. 2,433 MTM

D100 Larry Lipton 1,358 9/30/2021

D101 Champion Security Agency 1,368 6/30/2022

D102 Faith Family Health

and Weight Management 1,230 6/30/2022

E100 Jasmine Robertson 1,235 6/30/2021

E101 Robinson Consolidation 849 11/30/2022

F100 VCFS Hope & Healing 639 MTM

F101 Vacant 975

F102 KTS Kwik Tax Service 322 MTM

SUITE TENANT SF EXP DATEF103 Gibson Plumbing 639 1/31/2021

F104 Vacant 942

F105 Vacant 363

F120 Dimbo AVL 556 5/31/2022

F121 Empire Services and Installations 696 MTM

F124 Family Resource Center 1,386 11/30/2021

F125 Tax Prep Tiffany Mayfield 729 11/30/2021

F200 Vacant 815

F201 DMR Financial Services 411 12/31/2021

F202 Vacant 752

F203 Hair by Renay 366 7/31/2023

F204 Righteous Business Inc. 1,131 MTM

F205 Vacant 416

F220 Vacant 458

F221 Mane Choice Beauty Bar 551 11/30/2021

F222 Vacant 942

F223 The Media Network 415 4/30/2021

F225 The Boudoir Beauty 921 3/31/2021

SUITE TENANT SF EXP DATEF226 Vacant 534

G100 Houston Hair Hospital 1,235 6/30/2023

G101 DMR Realty 849 MTM

H100 Vacant 1,242

H101 DAS Dynamic Services 432 MTM

H102 Vacant 681

H103 Fitness Wear 1,006 12/31/2022

H104 Future Somebody 494 5/31/2023

H120 Houston Northwest Rehab 2,157 MTM

H121 Vacant 848

H122 Pam Williams 425 MTM

H200 Vacant 560

H201 Queen of Kings Salon 630 2/28/2022

H202 Nails by Silky 768 3/31/2021

H203A Norris Lumar

Positive Vibes Hair Studio 1,129 4/30/2023

H203B Who Chopped U 812 12/31/2020

H220 Belle Braiding Room 562 2/28/2022

H221 Vacant 543

H222 Belle Braiding Room 425 4/30/2021

H223 Clutch City Mobile 427 5/31/2023

S I T E P L A N

*Traffic light installed to serve the Property




5-Mile Population



14.3%1-Mile Avg. Home Value

$319,604







HOUSEHOLDS





HOUSEHOLD INCOME



HOME VALUE


PLACE OF WORK

2019 Businesses 621 5,082 11,032

2019 Employees 4,285 38,951 108,688

DEMOGRAPHIC PROFILE

P R O S P E R I T Y B U S I N E S S C E N T E R


AFFILIATED BUSINESS DISCLOSURE

CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses

including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including

CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients

may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum

constitutes your acknowledgment of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement

in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in

a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their

respective client(s).

CONFIDENTIALITY AGREEMENT

Your receipt of this Memorandum constitutes your acknowledgment that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire

to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior

written authorization of the owner of the

Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc. If after reviewing this Memorandum, you

have no further interest in purchasing the Property, kindly return it to CBRE, Inc.

DISCLAIMER

This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective

investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified

for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates

based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the

current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents,

including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an

opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and

information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs.

ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.

The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with

or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as

set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.

28

E X C L U S I V E M A R K E T I N G A DV I S O R S

D E B T & S T R U C T U R E D F I N A N C E

MATT BERRY

First Vice President

713 577 1640

[email protected]

DREW REINKING

Senior Financial Analyst

713 577 1579

[email protected]

ROBBIE KILCREASE

Vice President

713 577 1657

[email protected]

LAUREN MCGINNITY

Transaction Analyst

713 577 1746

[email protected]

JOHN FENOGLIO

Executive Vice President

713 787 1911

[email protected]

© 2020 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk.

CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this document are the property of their respective owners, and the use of such logos does not imply any affiliation with or endorsement of CBRE.

Photos herein are the property of their respective owners. Use of these images without the express written consent of the owner is prohibited.

Documents

HOUSTON BOUTIQUE · 2020. 6. 22. · Property Snapshot # ADDRESS CITY TYPE (SIZE) SF OCCUPIED BUILT 1 650 FM 517 Rd W Dickinson Retail 22,745 84.0% 2008 2 17300 El Camino Real Houston