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Presented by Rebecca Le and John Nguyen | 281.477.4300 | www.newquest.com
The Center at Memorial - Offering MemorandumSEC HIGHWAY 6 & MEMORIAL DRIVE | HOUSTON, TEXAS
$3,890,000.00
6.00% Cap Rate
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Located in the Energy Corridor which contains over 24 million square feet of office space. Many companies use the Energy Corridor as corporate or regional headquarters including BP America, Citgo, Conoco Phillips, Dow Chemical, ExxonMobil, Mustang Engineering, Technip USA, Shell Oil and Worley Parsons.
Strong national and regional retailers with excellent remaining lease term and a secure income stream. Investment upside includes the opportunity for a bank ATM ground lease.
Prime investment property located on Houston’s prestigious Memorial Drive. State Highway 6 spans 476 miles from the Texas/Oklahoma boundary to Galveston, Texas.
Higher-income residential population and education levels. Within a 2 mile and 3 mile radius 66% and 59% of the population has a bachelors or graduate degrees. Annual average household income of $119,000 and $102,000 within the two and three mile radius.
Investment Overview
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HCTRA
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TOLLWAY
HCTRA
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Huntsville
Willis
TheWoodlands
Cleveland
Conroe
Tomball
Cypress
Pearland
HoustonHoustonKaty
SEC of Memorial Dr. and Highway 6 | Houston, TX
The Center at Memorial
Demographics 2.00 Mi 3.00 Mi
Active Population 27,189 68,953
Residential Count: 12,573 31,177
Average Household Income $119,386 $102,067
Growth Since 2010 Census 24.41% 22.12%
The Center at Memorial is 9,925 SF and includes Starbucks
Coffee, Thai Massage, Kolache Factory and a salon. It is located
at the southeast corner of State Highway 6 and Memorial Drive in
The Energy Corridor. At the intersection, there are 86,934 CPD.
Corporations in the Energy Corridor comprise BP of America, Citgo,
Conoco Phillips, Exxon Mobile, and Shell Oil for a total of 84,000
employees in 19 million SF of office space.
• Residential communities nearby: Fleetwood, Memorial Thicket,
Marywood, Briar Hills, Barkers Landing and Terraces on Memorial
• 2,450 SF second generation end cap available
• Elevated sign band and opportunity available on pylon sign
9.15 | 4.15
Rebecca Le281.477.4327 [email protected]
John Nguyen281.477.4326 [email protected]
ATM Opportunity
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Investment Highlights
Price: $3,890,000.00
First Year NOI: $233,508.48
Cap Rate: 6.00%
Address: 803 Highway 6 South Houston, Texas 77079
Year Built: 2005
Building Size: 9,971 SF
Lots Size: 36,660 SF (0.84 acres)
Tenants: Starbucks Coffee Kolache Factory Check N Go New Thai Massage Upscale Nails Fusion Hookah Lounge
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Highway 6
Highway 6
ENERGYCORRIDORENERGY
CORRIDOR
Interstate 10Interstate 10
Memorial Dr.
Memorial Dr.
SITESITE
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SEC of Memorial Dr. and Highway 6 | Houston, TX
The Center at Memorial
THAIMASSAGE
AVAILABLENAIL
SALONFUSION HOOKAH
LOUNGE
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Current Households 12,590 31,352 101,837
Current Population 27,234 69,322 257,491
2010 Census Average Persons per Household 2.16 2.21 2.53
2010 Census Population 22,402 57,335 218,025
Population Growth 2010 to 2015 22.01% 21.08% 18.31%
1 Person Household 36.07% 36.73% 29.44%
2 Person Households 34.49% 31.71% 30.22%
3+ Person Households 29.44% 31.56% 40.34%
Owner-Occupied Housing Units 45.95% 40.31% 50.51%
Renter-Occupied Housing Units 54.05% 59.69% 49.49%
2015 Estimated White 65.56% 59.58% 54.35%
2015 Estimated Black or African American 10.09% 15.96% 19.50%
2015 Estimated Asian or Pacific Islander 17.02% 14.61% 13.21%
2015 Estimated American Indian or Native Alaskan 0.23% 0.36% 0.46%
2015 Estimated Other Races 7.11% 9.48% 12.49%
2015 Estimated Hispanic 17.81% 21.46% 28.45%
2015 Estimated Average Household Income $118,545 $103,749 $94,102
2015 Estimated Median Household Income $93,128 $80,268 $73,504
2015 Estimated Per Capita Income $55,508 $47,756 $38,059
2015 Estimated High School Graduate 11.05% 13.95% 17.16%
2015 Estimated Bachelors Degree 36.80% 34.26% 28.28%
2015 Estimated Graduate Degree 22.77% 20.22% 15.83%
2015 Median Age 39.1 35.9 34.7
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806 Highway 62 Miles 3 Miles 5 Miles
Houston, TX
CUSTOM POSTAL PROFILE2010 Census, 2015 Estimates with Delivery Statistics as of 09-2015Calculated using Weighted Block Centroid from Block Groups / Proportional Postal Hybrid
Lat/Lon: 29.7749/-95.6439
©2016, Sites USA, Chandler, Arizona, 480-491-1112 page 1 of 1 Demographic Source: Applied Geographic Solutions 11/2015, TIGER Geography
The Center at Memorial - Demographic Report
Tenant Overview
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StarbucksStarbucks is the largest coffeehouse company in the world operating in 68 countries and is one of the most recognized and respected brands in the world. Starbucks is publicly traded company and is an Investment Grade Company rated A- by Stand and Poor’s S&P (NASDAQ: SBUX). There are 12,235 company operated stores.
Starbuck Corporation Guaranty and a drive thru location. Ten (10) year term remaining on the lease with three (3) five (5) year options.
Kolache Factory Kolache Factory is privately owned and operated with over 50 locations in Houston and is also located in Missouri, California, Nebraska, Virginia, Colorado, and New Mexico. Corporate Guaranty.
Check N GoFounded in 1994, Check N Go is a prominent leader in the payday loan industry with over 1,000 stores in 31 states.
National Tenants
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Company Name Employees
Wood Group 10,960BP America, Inc. 9,537Conoco 3,000Shell Oil Company, Woodcreek 3,000Methodist West Houston Hospital 2,100Mariner Post‐Acute Network 2,000The Friedkin Group 2,000Sysco Corporation 1,800Technip USA Inc. 1,800CITGO Petroleum Corporation 1,367Dow Chemical 1,330Foster Wheeler USA Corporation 1,000Texas Children's Hospital West 1,000Mustang Engineering (a Wood Group 985Star Furniture Company 850Cardinal Health Pharmacy Services 750ExxonMobil Chemical 750Garden Ridge 700KBR Inc. 700Gulf States Toyota, Inc. 600James Coney Island 500Alliance Engineering 450Sercel Inc. 450Worley Parsons 450Gulf Interstate Engineering Co. 430Houston Community College ‐ Katy 430J. Ray McDermott, Inc. 400McDermott International Inc 400Expro Americas LLC 350Top Golf 350Clover Global Solutions LP 300Diamond Offshore Drilling, Inc. 300Saipem America Inc. 300Stone & Webster Mgt. Consultant, Inc. 300PGS Americas 295Mossy Nissan 230Omni Houston Hotel Westside 221Westside Lexus 220Sam's Club ‐ Highway 6 North 212Atwood Oceanics 200Global Industries, Ltd. 200SBM Atlantia, Inc. 200Sonangol USA 200
Source: CDS Market Research, based on data from the Greater Houston Partnership business database. The employment numbers are approximate.
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Largest Energy Corridor Employers
Energy Corridor Quick Facts
• The Energy Corridor includes a population of nearly 22,000 and over 92,000 jobs.
• 24 million square feet of office space (of which 78% is Class A)
• 2.8 million square feet of retail
• The Energy Corridor is the second largest office employment center in the region and one of Houston’s premier areas for an active, healthy lifestyle.
• Destined to be a central focus of Houston’s economic growth for years to come. By 2030, office/mixed-use space is expected to reach 45.2 million square feet.
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POPULATION• City of Houston: 2,119,831 with a forecasted growth of 140,000 per
year• Houston MSA: 6,117,035 (9 counties), with a projection of 7.2+ million
by 2018
US COMPARISON• 4th largest city• 3rd largest county (Harris)• 5th largest MSA
ECONOMY• 480.6 billion nominal gross area product for the Houston MSA• If it were ranked as a country, Houston would rank as the world’s 24th
largest economy, just behind Norway.• The Houston MSA added 491,500 jobs from 2010 to 2015
INCOME• Per capital personal income (PCPI) of $47,682 (17% above national
average)• PCPI increased by 5.9% in the Houston MSA, compared to 4.4%
nationally in 2010
EMPLOYMENT (NON-FARM)• Total employment for the Houston MSA was 3,015,800 in 2015, a record
for the region.• Unemployment is significantly lower in the Houston MSA then the rest
of the nation: 4.6% versus a national average of 5.6%
HOUSING• Single family home closings were 73,724 in 2015 (the second-best year
on record for home sales.)• Metrostudy forecasts 25,000 new home starts in 2016
COST OF LIVING• Houston’s cost of living is 5.8% below the national average• Houston’s housing costs are 11.6% below average, and 37.3% below
average for large metro areas
Galleria / Uptown
Downtown Houston
Houston Quick Facts
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HOUSTON ECONOMY
HOUSTON.ORG — 17
Employment Total nonfarm employment in the Houston MSA stood at
2,800,600 in June 2013, up 97,700 from June 2012.
From June 2012 to June 2013, local nonfarm employment rose 3.6 percent compared to the national increase of 1.7 percent.
Houston MSA unemployment in June 2013 averaged 6.7 percent, versus a national average of 7.8 percent.
Largest Houston Area Employers - 2013Company Employees
Memorial Hermann Health System 19,500
The University of Texas MD Anderson 19,290
United Airlines 17,000
Exxon Mobil Corporation 13,191
Shell Oil Company 13,000
Houston Methodist 13,000
Kroger Company 12,000
National Oilwell Varco 10,000
Schlumberger Limited 10,000
BP America, Inc. 9,537
UTMB Health 9,318
Baylor College of Medicine 9,232
Chevron 9,000
HP 9,000
ARAMARK Corp. 8,500
Pappas Restaurants, Inc. 8,000
HCA 7,855
Macy’s 7,000
AT&T 6,900
The Dow Chemical Company, Freeport 6,100
Baker Hughes Incorporated 6,000
H.E.B. 6,000
St. Luke’s Episcopal Health System 6,000
Texas Children’s Hospital 6,000
Jacobs 5,800
Halliburton 5,748
Fiesta Mart, Inc. 5,500
Archdiocese of Galveston-Houston 5,220
KBR 5,089
LyondellBasell Industries 5,080
CenterPoint Energy 5,000
JPMorgan Chase 5,000
Note: Ranked by number of employees. The list does not include casual dining establishments, municipalities, school districts, community colleges, public universities (except UTMB Health and The University of Texas MD Anderson) and governmental agencies.
Source: Greater Houston Partnership Database, July 2013
International BusinessHouston, a major international city, consistently ranks among the top three U.S. cities in the number of foreign consulates. It is the base of operations for the international oil and gas exploration and production industry and for many of the nation’s largest international engineering and construction firms.
A key center for international finance, Houston leads the Southwest with 20 foreign banks from 9 nations. The Houston operations of these banks account for 12 of Texas’ 17 foreign bank representative offices and seven of Texas’ nine foreign bank agencies.
Ninety-two nations have consular offices in the city, ranking Houston’s consular corps 3rd largest in the nation.
Fifteen foreign governments maintain trade and commercial offices here, and the city has 25 active foreign chambers of commerce and trade associations.
Consumers can search the Houston Association of Realtors® properties database (HAR.com) in English, Spanish, Chinese, French, German, Italian and Vietnamese. The association’s 5,475 multilingual realtors speak 92 languages other than English.
Houston has two Chinese daily foreign-language newspapers, plus at least 21 less frequently published newspapers and magazines in a variety of languages. Two television stations present programming in Spanish and one station includes programming in Chinese. Spanish broadcasting has a significant presence on radio (14 stations), which also includes programming in several Asian languages.
Houston has 17 sister-city relationships promoting business opportunities across five continents: Australia (1), Asia (6), Europe (7), Africa (1) and Americas (2).
In July 2013, the Greater Houston Partnership’s database listed 3,341 Houston area firms, foreign government offices and nonprofit organizations involved in international business.
• 395 Houston area companies report having offices abroad in 141 countries
• 745 firms in Houston report foreign ownership
Flags representing the U.S. and other countries around the world
Largest Houston Area Employers
Texas Medical Center
CORPORATE ECONOMY• Ranked 3rd in the nation among US metro areas for the number of Forbes
Fortune 500 company headquarters• Home to 25 of the Fortune 500, 7 of the Fortune Global 500, and 25 of Forbes
Global 2000 companies
THE TEXAS MEDICAL CENTER• World’s largest medical complex, home to many of the world’s leading institu-
tions• Encompasses 45.8 million SF, employs 106,000 people, and over 7.2 million
annual patient visits
THE PORT OF HOUSTON & HOUSTON SHIP CHANNEL• Nationally ranked 1st in foreign tonnage, 1st in import tonnage, and 2nd in
overall tonnage for over 17 consecutive years• Contributes to over 1,026,820 jobs throughout Texas• Home to the largest petrochemical complex in the U.S. (second largest in the
world)
Disclaim
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Prospective purchasers are hereby advised the Owners (“Owner”) of the Property are soliciting offers through NewQuest Properties (“NewQuest”), which may be accepted or rejected by the Owners at the Owners’ sole discretion.
Any solicitation of an offer for the Property offered hereunder will be governed by this Offering, as it may be modified or supplemented. Prospective purchasers are advised that as part of the offer process, the Owners will be evaluating several factors including the experience and financial qualifications of the purchasing entity.
The Owners shall have no obligation to accept any offer from any prospective purchaser. The Owners reserve the right to withdraw the Property from consideration at any time prior to final execution of a Purchase Agreement.
This Offering document is furnished to prospective purchasers for the purpose of determining whether to invest in the Property offered hereby. The information contained herein, or any other related information provided by the Owners, may not be reproduced, redistributed or used in whole or in part without the prior written consent of the Owners.
No person has been authorized to give any information or make any representation or warranty, either expressed or implied and, if given or made, such information or representation must not be relied upon.
While the Owners and NewQuest have no reason to believe that the information provided herein or in subsequent information updates delivered to potential purchasers hereunder contains any material inaccuracies, neither the Owners nor NewQuest nor any of the Owners’ or NewQuest’s respective subsidiaries, affiliates, companies, or the officers, directors, employees, agents and representatives of any such entities, etc., make any representations or warranties, expressed or implied, as to the validity, accuracy or completeness of the information provided or to be provided, and nothing herein shall be deemed to constitute a representation, warranty or promise by any such parties as to the future performance of the Properties or any other matters set forth herein.
Any obligations to prospective purchasers that the Owners may have with respect to the Properties are limited to those expressly set forth in a fully executed Purchase Agreement between the parties. Prospective purchaser’s sole and exclusive rights against the Owners, with respect to this prospective transaction, the Property, or information provided herein or subsequently, shall be limited to those remedies expressly provided in an executed Purchase Agreement, which shall not survive the closing. Further, in no event shall prospective purchasers have any claims against the Owners, NewQuest, or any of their respective affiliates for any damages, liability, or causes of action relating to the Purchase Agreement.
Prospective purchasers are not to construe the contents of this Offering or any prior or subsequent information communications from the Owners or any of their respective officers, employees or agents as legal, tax or other advice. Prior to purchasing, prospective purchasers should consult with their own legal counsel and personal and tax advisors to determine the consequences of an investment in the Property and arrive at an independent evaluation of such investment.
No commission or finder’s fee shall be payable to any party by the Owners nor any affiliate or agent thereof in connection with the sale of the Property unless otherwise agreed to by the Owners in writing.
Acquisition of properties such as the these offered hereunder involves a high degree of risk and are suitable only for persons and entities of substantial financial means.
Disclaimer
Please Submit Offers to
Rebecca Le281.477.4327
John Nguyen281.477.4326
8827 W. Sam Houston Parkway, N. Suite 200Houston, Texas 77040www.newquest.com
03.09.2016
