Embed Size (px)
Citation preview
126 W RECTOR DRIVE, SAN ANTONIO, TX 78216
$6,175,0004th Fastest Growing
City in US
LISTED IN PARTNERSHIP TEXAS REAL ESTATE BROKER
EDGE REALTY PARTNERS - TREC#594592
Click to watch
PropertyVideo
2
ADJACENT TOSAN ANTONIO’S PREMIER LUXURY MALL
WHY RECTOR PLAZA?
Achieve attractive returns now and in the future in a growing major market, in a luxury retail zone, with established tenants at below market rents.
Lucrative current cap rate.
Immediate upside through lease-up of the existing vacant space.
Long-term upside from under-market rents.
Located in one of the most exciting cities in America, synergistically next to a thriving luxury mall.
Successful local and regional tenants with established tenancy.44
Rector Plaza at North Star is a net-leased neighborhood strip center along San
Antonio’s Northwest 410 Loop. The property was constructed in 2001 and is
over 93% occupied.
Many tenants have occupied the center for over a decade and continue to
renew their tenancy at Rector Plaza because of its neighborhood appeal and
proximity to both the North Star Mall and the Northwest 410 Loop.
“Destination-Tenants” such as Joseph’s, North Star Barber, and the Dance
Center of San Antonio are local institutions which draw customers from all over
northern San Antonio.
ABOUT THEPROPERTY
5
$6,175,000 $453,2047.3% Cap Rate
(with existing 7% vacancy)
33,015 SF$187/SF
100,624 Lot SF$61/Lot SF
(2.31 acres)
126 W Rector Dr.San Antonio Texas 78216
Parcel Number12025-000-0040
COUNTY: Bexar(Not including 4776 SF Mezzanine and 300 SF Patio)
HIGHLIGHTS
Loop 410, with over 262,900 cars per day, is among San Antonio’s most important highways. Rector Plaza is “Inside the Loop”.
The North Star Mall is San Antonio’s premier luxury shopping destination (featuring Apple, Saks Fifth Avenue, and Macy’s).
With over 1.5 million residents, San Antonio is the 4th fastest growing city in the United States
Time magazine reported that San Antonio and its suburbs are the second highest area for “Millennial” population growth in the country.
66
STRONG TRAFFIC COUNTS PREMIER LOCATION POWERFUL SYNERGY
GROWING POPULATIONA MILLENIAL FUTURE
Over 57,000 cars per day on the two nearby North/South corridors: San Pedro Avenue (39,340 cars per day) and McCollough Avenue (18,133 cars per day).
Located in North San Antonio’s Premier Retail District
n
SurroundingRetail
Joseph’sInterior
8
PropertyPhotos
9
Josephs Men’s Store
Josephs is a local family-owned men’s clothing institution that has operated in San Antonio for over 60 years. Josephs is branded as the premier men’s clothing destination of San Antonio and carries a variety of clothing brands such as Peter Millar, Hickey Freeman, Hugo Boss, and Ralph Lauren. Josephs also has full-service tailoring and made-to-measure options.
Slackers
Featuring 12 large format flat screen TVs, one of the largest selections of Texas craft IPA beers in San Antonio, and a full-size pool table, Slackers is the premier playground for adults. Slackers initially opened as a sports bar, but quickly transitioned into an arcade and full-service gaming bar. Their North Star location features a second-floor arcade with classic games such as Tekken Tag, Galaga, Pac-Man, and Mortal Kombat.
10
Dance Center of San Antonio
The Dance Center of San Antonio (“DCSA”) is the premier ballet training center in the city. DCSA dancers put on annual shows for the city and have competed in international competitions such as the Vaganova Prix and the Prix de Lausanne. In addition to regular classes, DCSA offers seasonal training camps that draw students from all over San Antonio.
University Health System - CareLink
CareLink is a financial assistance program operated by the University Health System of Bexar County. San Antonio or Bexar County residents who do not have private or public health insurance are eligible to enroll in CareLink. University Health System is a nationally recognized teaching hospital and network of outpatient healthcare centers, owned by the people of Bexar County. In partnership with UT Health San Antonio, it is consistently recognized as a leader in advanced treatment options, new technologies and clinical research.
Tenant
Website: www.universityhealthsystem.comOwnership: Government Entity Locations: 35
Website: www.dancecenterofsanantonio.comOwnership: PrivateLocations: 1
Website: www.slackersbars.comOwnership: Private Locations: 3
Website: www.josephsmenstore.comOwnership: PrivateLocations: 1
Profiles P A G E 1 0 F 2
A local beautification destination. Upper Hands Nail Salon providesstandard services such as manicures and pedicures while also actingas a social gathering place.
Pho Thien An is a family-owned Vietnamese and Chinese restaurantthat has been serving customers since 2009. Rated one of the top tenVietnamese restaurants in San Antonio, their Pho Dac Biet andSummer Rolls are late-night favorites.
AtWork is a national temp-to-hire and direct hire services company.AtWork Personnel Services is a branch of the AtWork networkdedicated to administrative and light industrial recruitment.
Pho Thien An
Upper Hands Nail Salon BRJS LLC dba AtWork Personnel Services
C O N T I N U E D
11
North Star Barber ShopEstablished in 1996, North Star Barber Shop is a full-service barber shop thatoffers everything from wet straight razor shaves to shoe-shines. North Star is ratedone of the top ten barber shops in San Antonio and is known for its high-qualityfades and phenomenal service.
The Party Staff is a national hospitality staffing company that providesstaffing solutions for corporate, residential, and sporting events.
The Party Staff
TenantProfiles
12
Parcel APN Lot Size
126 W Rector Dr. 12025-000-0040 2.31 AC
Land Area
Rector Plaza consists of 1 parcel totaling approximately 2.31 acres or 100,624 SF of land area.
Building Area
1 retail building totals approximately 33,015 SF of net rentable area (not including 4776 SF dance studio mezzanine and 300 SF rented patio).
Parking
Rector Plaza provides 139 parking spaces, approximately 4.11 spaces per 1,000 SF.
Traffic CountsW. Rector Drive…………………….13,026 CPDSan Pedro Avenue…………….39,340 CPD McCollough Avenue…….…18,133 CPD
Built
Construction was completed in 2001.
PropertyInformation
13
RentRoll P A G E 1 O F 2Lease Term Rental Rates
Suite Tenant Name GLA Sqft % of Property Start Begin End Begin Monthly PSF Annually PSF Recovery Type
100 The Party Staff, Inc. 866 2.56% 9/24/2019 9/24/2019 9/30/2020 Current $1,327.15 $1.53 $15,926 $18.39 NNN+Pro Rata CAM
10/1/2020 9/30/2021 Future $1,363.23 $1.57 $16,359 $18.89
10/1/2021 9/30/2022 Future $1,399.31 $1.62 $16,792 $19.39
10/1/2022 9/30/2023 Future $1,435.40 $1.66 $17,225 $19.89
10/1/2023 9/30/2024 Option 1 $1,471.48 $1.70 $17,658 $20.39
10/1/2024 9/30/2025 $1,507.56 $1.74 $18,091 $20.89
10/1/2025 9/30/2026 $1,543.65 $1.78 $18,524 $21.39
10/1/2026 9/30/2027 $1,579.73 $1.82 $18,957 $21.89
10/1/2028 9/30/2028 $1,615.81 $1.87 $19,390 $22.39
120 Dance Center 9084 26.88% 7/6/2017 11/1/2019 10/31/2020 Current $7,570.00 $0.83 $90,840 $10.00 NNN+Pro Rata CAM+15% mng. fee
11/1/2020 10/31/2021 Future $7,759.25 $0.85 $93,111 $10.25
11/1/2021 10/31/2022 Future $7,948.50 $0.88 $95,382 $10.50
11/1/2022 10/31/2023 Future $8,137.75 $0.90 $97,653 $10.75
11/1/2023 10/31/2024 Future $8,327.00 $0.92 $99,924 $11.00
11/1/2024 10/31/2025 Future $8,516.25 $0.94 $102,195 $11.25
136 Rector Bar, LLC. 3487‡ 10.32% 2/1/2011 2/1/2020 1/31/2021 Future $5,422.63 $1.56 $65,072 $18.66 NNN+Pro Rata CAM+15% mng. fee
2/1/2021 2/1/2022 Future $5,561.67 $1.59 $66,740 $19.14
104 BRJS, LLC dba AtWork Personnel Services 1000 2.96% 3/1/2020 3/1/2020 2/28/2021 Current $1,666.67 $1.67 $20,000 $20.00 NNN+Pro Rata CAM
3/1/2021 2/28/2022 Future $1,750.00 $1.75 $21,000 $21.00
3/1/2022 2/28/2023 Future $1,833.33 $1.83 $22,000 $22.00
3/1/2023 2/29/2024 Future $1,916.67 $1.92 $23,000 $23.00
‡ Tenant leases 3.187SF “Bar Space” and 300SF “Patio”
RentRoll P A G E 2 O F 2
14
Lease Term Rental Rates
Suite Tenant Name GLA Sqft % of Property Start Begin End Begin Monthly PSF Annually PSF Recovery Type
108 Pho Thien An 1817 5.38% 10/1/2005 2/1/2020 1/31/2021 Future $3,331.17 $3.33 $39,974 $22.00 NNN+Pro Rata CAM+15% mg. fee
2/1/2021 1/31/2022 Future $3,406.88 $3.41 $40,883 $22.50
2/1/2022 1/31/2023 Future $3,482.58 $3.48 $41,791 $23.00
2/1/2023 1/31/2028 Option 1 FMV FMV FMV FMV
112 Hien Luu dba Upper Hands Nail Salon 903 2.67% 8/1/2009 8/1/2019 7/31/2020 Current $1,580.25 $1.75 $18,963 $21.00 NNN+Pro Rata CAM+5% mng. fee
8/1/2020 7/31/2021 Future $1,617.88 $1.79 $19,415 $21.50
8/1/2021 7/31/2022 Future $1,655.50 $1.83 $19,866 $22.00
114 Vacancy 2350 7.10% N/A Check Argus assumptions.
116 Bexar County Hospital Distirct dba University Health System 2128 6.30% 5/1/2013 5/1/2019 4/30/2020 Current $3,014.67 $1.42 $36,176 $17.00 NNN+Pro Rata CAM+5% mng. fee
5/1/2020 4/30/2021 Future $3,105.11 $1.46 $37,261 $17.51
5/1/2021 4/30/2022 Future $3,198.26 $1.50 $38,379 $18.04
124/132 Josephs Mens Store 10500 31.07% 10/1/2004 2/1/2019 1/31/2025 Current $12,687.50 $1.21 $152,250 $14.50 NNN+Pro Rata CAM+15% mng. fee
2/1/2025 1/31/2030 Option 1 $13,125.00 $1.25 $157,500 $15.00
2/1/2030 1/31/2035 Option2 $13,562.50 $1.29 $162,750 $15.50
144 North Star Barber Shop 1180 3.49% 11/1/2005 3/1/2019 2/28/2024 Current $2,015.83 $1.71 $24,190 $20.50 NNN+Pro Rata CAM+15% mng. fee
3/1/2024 2/28/2029 Future $2,217.42 $1.88 $26,609 $22.55
Cash FlowProjectionsYear 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
For the Years Ending Mar-2021 Mar-2022 Mar-2023 Mar-2024 Mar-2025 Mar-2026 Mar-2027 Mar-2028 Mar-2029 Mar-2030
Rental RevenuePotential Base Rent 522,758 526,705 532,397 536,239 544,153 582,717 634,083 639,115 639,275 640,920Absorption & Turnover Vacancy -56,400 -21,495 -6,307 -2,122 -10,824 -15,044 -13,147 -11,138 -4,794 -2,390
Total Rental Revenue 466,358 505,209 526,090 534,116 533,328 567,672 620,937 627,977 634,481 638,530
Other Tenant RevenueTotal Expense Recoveries 198,693 215,359 226,327 233,998 237,930 243,256 254,078 261,895 271,170 279,436
Potential Gross Revenue 665,052 720,568 752,417 768,114 771,258 810,929 875,014 889,872 905,651 917,966
Vacancy & Credit LossVacancy Allowance 0 -17,450 -22,479 -24,690 -16,383 -26,517 -26,280 -24,484 -27,246 -29,656
Effective Gross Revenue 665,052 703,118 729,938 743,425 754,875 784,412 848,734 865,387 878,404 888,310
Operating ExpensesGeneral Operating Expense 211,848 219,197 226,002 232,472 238,774 246,671 255,520 262,722 270,111 277,615Repair & Maintenance 2,185 2,251 2,319 2,388 2,460 2,533 2,609 2,688 2,768 2,851Sweeping 5,137 5,292 5,450 5,614 5,782 5,956 6,134 6,318 6,508 6,703Landscaping 5,683 5,854 6,029 6,210 6,396 6,588 6,786 6,989 7,199 7,415Security Service 4,616 4,755 4,897 5,044 5,196 5,351 5,512 5,677 5,848 6,023Fire Monitoring 460 474 488 503 518 534 550 566 583 601Insurance 18,782 19,345 19,926 20,524 21,139 21,773 22,427 23,099 23,792 24,506Phone 1,881 1,937 1,995 2,055 2,117 2,180 2,245 2,313 2,382 2,454Electricity 5,779 5,952 6,131 6,315 6,504 6,700 6,901 7,108 7,321 7,540Water and Sewer 7,175 7,390 7,612 7,840 8,075 8,318 8,567 8,824 9,089 9,362Trash Disposal 11,215 11,552 11,898 12,255 12,623 13,002 13,392 13,793 14,207 14,633Property Tax 130,279 134,187 138,213 142,359 146,630 151,029 155,560 160,227 165,034 169,985Management 18,654 20,208 21,044 21,365 21,333 22,707 24,837 25,119 25,379 25,541
Total Operating Expenses 211,848 219,197 226,002 232,472 238,774 246,671 255,520 262,722 270,111 277,615
Net Operating Income 453,204 483,921 503,936 510,952 516,101 537,741 593,214 602,665 608,294 610,696
Cap on Acquisition 7.34% 7.84% 8.16% 8.27% 8.36% 8.71% 9.61% 9.76% 9.85% 9.89%
Leasing CostsTenant Improvements 0 21,550 19,294 0 6,753 57,920 16,836 61,506 6,582 17,066Leasing Commissions 0 2,287 2,000 0 777 6,018 1,679 6,014 663 1,706Total Leasing Costs 0 23,836 21,293 0 7,530 63,937 18,515 67,520 7,245 18,772
Cash Flow Available for Distribution 453,204 460,084 482,642 510,952 508,572 473,804 574,699 535,145 601,049 591,924
16
AssumptionsGENERAL
ANALYSIS PERIOD
Commencement Date: 4/1/2020
End Date: 3/31/2030
Term: 10 Years
AREA
Building Area: 33015 SF
GROWTH RATES
Market Rent Growth: 2.00%
Expense Inflation: 3.00%
Real Estate Tax Inflation: 3.00%
General Vacancy Loss: 5.00%
LEASING
OCCUPANCY
Currently Available as of 3/1/2020: 2350 SF
Projected Available at 4/1/2020: 2350 SF
Units Available at 4/1/2020: 1 unit
Percentage Area Available as of 4/1/2020: 7.10%
Absorption Period: 15 Months
Absorption Period Start Date: 4/1/2020
Absorption Occurs On: 7/1/2021
FINANCES
Projected New Lease for Vacant Space: $20.40 PSF
Rent Escalations: 2% Annual Increases
Lease Term: 5 Years
Expense Reimbursement Type: NNN + Admin
Tenant Improvements: None
EXPENSES
Operating Expense Source: 2019 Actuals
Management Fee (% of Rental Income): 4.00%
LEASE ABSTRACTS
Tenant EntityThe Party Staff,
Inc.
BRJS, LLC dba AtWork
Personnel Services
Pho Thien AnHien Luu dba Upper Hands
Nail Salon
Bexar County Hospital District dba University Health System
Dance Center of San Antonio
Josephs Men’s Store
Rector Bar, LLC. dba Slackers
North Star Barber Shop
Suite Number 100 104 108 112 116 120 124/132 136 144
Square Feet 866 1,000 1,817 903 2,128 9,084 10,500 3,487 1,180
Annual Rent $15,926 $20,000 $39,066 $18,963 $36,176 $90,840 $152,250 $63,403 $24,190
Annual Rent/SF $18.39 $20.00 $21.50 $21.00 $17.00 $10.00 $14.50 $18.18 $20.50
Lease Start 9/24/2019 3/1/2020 10/1/2005 8/1/2009 5/1/2013 7/6/2017 10/1/2004 2/1/2011 11/1/2005
Lease Expiration 9/30/2024 2/29/2024 2/1/2022 7/31/2022 4/30/2022 10/31/2025 1/31/2025 2/1/2022 2/28/2029
Increases Annual, 2.6% Annual, 4.5% Annual, 2.3% Annual, 2.3% Annual, 3% Annual, 2.5% None Annual, 2.6% Five Year, 10%
Lease Type Net Net Net Net Net Net Net Net Net
Reimbursement Notes
Pro Rata CAM charges. Tenant
does not reimburse for
roof or structure.
Pro Rata CAM charges. Tenant
does not reimburse for
roof or structure.
Pro Rata CAM charges + 15%
mng. fee. Tenant does not
reimburse for roof or structure.
Pro Rata CAM charges + 5%
gross rent mng. fee. Tenant does
not reimburse for roof or structure.
Pro Rata CAM charges + 5%
mng. fee. Tenant does not
reimburse for roof or structure.
Pro Rata CAM charges + 15%
mng. fee. Tenant does not
reimburse for roof or structure.
Pro Rata CAM charges + 15%
mng. fee. Tenant does not
reimburse for roof or structure.
Pro Rata CAM charges + 15%
mng. fee. Tenant does not
reimburse for roof or structure.
Pro Rata CAM charges + 15%
mng. fee. Tenant does not
reimburse for roof or structure.
Options 1, 5-year option None 1, 5-year option None None None 2, 5-year options
None None
Guaranty Corporate N/A Personal Personal N/A Personal Corporate Personal Personal
Report Sales Yes Yes No No No No No No No
Percentage Rent No No No No No No No No No
0%
10%
20%
30%
40%
50%
60%
70%
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
% of SF
18
Rector Plaza at North Star has well-staggered expiration exposure for the next six years. Likelihood of turnover for the Dance Center of San Antonio or Josephs is limited because of their local appeal and their long-term tenancy.
Upper Hands Nail Salon
LeaseTurnover Schedule
$15,926
$90,840
$63,403
$20,000
$39,066$18,963
$36,176
$152,250
$24,190
19Upper Hands
Nail Salon
Income is well distributed between large and small tenants.Exposure to the successful co-anchors, Josephs and the DanceCenter of San Antonio, is mitigated by their strong performanceand loyal repeat customer base.
Other tenants such as Pho Thien An, North Star Barber, and UpperHands Nail Salon have been in Rector Plaza for over 10 years andare mainstays of the community.
The Dance Center is a recurring, service-based anchor, and boththe Dance Center and Joseph’s cater to an upper-incomecustomer base that creates synergy and success for the othertenants. Joseph’s clients have decades of loyalty to the customer-service oriented mission of the store; this level of custom attentionand client-knowledge is a competitive advantage over online-shopping.
IncomeDiversity
PropertyPhotos
20
• Located in the Texas Triangle
• 2 UNESCO World Heritage sites
• 5 US military bases
• 6 Fortune 500 company headquarters
• 31 colleges and universities
• 4th fastest growing economy in the nation over the past 12
years
• Home of The Riverwalk and The Alamo which attract 37
millions tourists annually
San Antonio is often overlooked in favor of its larger neighbors -
Austin, Dallas-Fort Worth, and Houston. As high cost of living and
tax incentives drive migration, we expect more businesses and
individuals will move to the area and call San Antonio their home.
In 2019 Realtor.com ranked San Antonio as America’s top
destination for millennials.
San Antonio
21
San Antonio is a military, logistics, IT, and healthcare services hub that services southern Texas. With
over 1.5 million residents, San Antonio is the seventh-most populous city in the United States and the
second-most populous city in the Southern United States. The city traces its origins to a Spanish colonial
mission that was founded in the early 18th century and is the oldest city in Texas. This rich cultural
legacy is augmented by the city’s dramatic economic growth over the past few decades.
2024 Projected Population 12,539 117,023 340,283
2019 Population 11,993 111,370 322,626
2010 Population 11,623 105,352 303,052
Projected Growth (2019-2024) 4.6% 5.1% 5.5%
Growth (2010-2019) 3.2% 5.7% 6.5%
Average Household Income $70,400 $73,080 $80,074
Median Home Value $197,729 $163,884 $207,142
Households 5,530 46,625 135,069
1 M i l e | 3 M i l e | 5 M i l e
15 minutes to downtown
22
2005
$3,200,000
$209
6.6%
1701 Fm 1960 Rd WHouston, TX
1324 Common StNew Braunfels, TX
12711 Blanco RdSan Antonio, TX
2017
$4,394,000
$649
6.1%
Year Built:
Sale Price:
Price Per SF:
Cap Rate:
2005
$3,000,000
$246
6.0%
7909 W Grand Pkwy S,Richmond, TX
19721 US Hwy 59Humble, TX
12000 Us Hwy 380Cross Roads, TX
2013
$6,100,000
$389
6.7%
1980
$8,400,000
$204
6.5%
2007
$5,065,000
$335
6.5%
ComparableSalesT E X A S S T R I P C E N T E R S
2001 Year Built$6,175,000$187 Per Foot7.3% Cap Rate
24
PropertyPhotos
881 Alma Real Drive #320, Pacific Palisades, California 90272
www.Newmontis.com
(424) 421-7373
Trevor Nelson
President
(424) 421-7371
Deal team:
NEWMONTIS
Vernon Jones
Investment Associate
(424) 421-7375
Javorn Farrell
Investment Associate
(424) 421-7372
Reid Yankowski
Investment Associate
(424) 421-7376
Real Estate Investment Banking
Dre #02090823
LISTED IN PARTNERSHIP WITH: EDGE Realty Partners, LLC. BRE#594592
Wilson Stafford - (214) 545-6933 - [email protected]
Disclaimer: This offering memorandum may contain errors, typographicalmistakes, miscalculations or incorrect estimates, calculations or projections. Wehope it doesn’t; we try to get stuff right. But just in case, we recommend youindependently verify everything and don’t make any investment decisions basedon the contents of this presentation.
