cinco-westheimer parkway plaza - transwestern · 2018. 5. 16. · cinco-westheimer parkway plaa...

CINCO-WESTHEIMERPARKWAY PLAZA

STABILIZED RETAIL CENTER IN TOP PERFORMING MASTER PLANNED COMMUNITY

CINCO-WESTHEIMER PARKWAY PLAZA

PROPERTY INFORMATIONS F

RY R

D

S FR

Y RD

WESTHEIMER PKWY

WESTHEIMER PKWY

SILV

ERBI

LT TR

AIL L

N

LARIAT CANYON DR

SERR

ANO

TRAI

L

ARROW FIELD LN

INDIAN GROVE LN

NELLIE GAIL TRAIL LN

SITESITE

26,399 CPD

17,252 CPD

29,06

0 CPD

13,58

7 CPD

CINCO RANCH - PARK HOLLOW78 HOMES

$250-$320K

CINCO RANCH - PARK VIEW203 HOMES$230-$310K

CINCO RANCH - PARK TRACE178 HOMES$230-$310K

KELLIWOODPOINTE

83 HOMES$285-$400K

MULTI-FAMILY269 UNITS

Transwestern is pleased to exclusively offer for sale Cinco-Westheimer Parkway Plaza (the “property”), a 17,500 square-foot (“SF”) retail center located in Katy, Texas. The stabilized neighborhood center features a reputable lineup of both national and local tenants including EZ Floors, Window & Home Decor, State Farm, 9Round, Eat and Out Cafeteria and Gentle Dental. The property is nestled within the affluent 8,092 acre Cinco Ranch master-planned community, a nationally recognized top selling residential development. The success of the Cinco Ranch development has fueled the explosive residential growth

within Katy over the past 25 years. The Katy trade area is highly sought after due to its flourishing master planned residential communities, award-winning school district and close proximity to the Energy Corridor. The Energy Corridor is the third largest employment center in Houston with over 94,000 jobs. The property is surrounded by a dense, well-educated population with more than 62% achieving a Bachelor’s degree or higher, average household incomes of $157,000 and home values averaging $327,000 within a one-mile radius.

OFFERED FOR SALE

Location 20680 Westheimer Pkwy, Katy, TX

Building Area 17,500 SF

NOI* $381,617

Sale Price $5,200,000

Cap Rate 7.3%

2

*Assumes one-year Master Lease of remaining 2,100 SF vacancy


» Located in the Heart of Cinco Ranch and Surrounded by Some of the Highest Incomes and Population Densities in Houston

» Katy and the Surrounding West Houston Communities are Among the Fastest Growing in the Nation with Nearly 6,500 Homes Added in the Last 18 Months and an Additional 20,000 Future Lots Planned for Development

» Stabilized Neighborhood Retail Center Surrounded by 3,200 Homes within a One-Mile Radius

» Limited Competition and High Barriers to Entry in Immediate Area Provides Long Term Stability

» Property is Offered Free and Clear with No Debt Obligations

» Seller to Master Lease the Remaining 2,100 SF Vacancy, Including Leasing Commissions and Tenant Improvement Allowance

INVESTMENT HIGHLIGHTS

AREA EMPLOYERS

AREA RETAILERS

3


EZ Floors | 3,000 SF, Lease Expiration 4/30/2020

EZ Floors, Inc is a Houston based company offering a variety of flooring options including high quality carpet, hardwood, laminate, tile and stone. EZ Floors was founded in 2005 and currently boasts eight locations in the Houston MSA. In addition to their extensive product showrooms, EZ Floors specializes in custom interior design consultation, installation, follow-up care and maintenance.

www.ezfloorsonline.com

Window & Home Décor | 2,030 SF, Lease Expiration 9/30/2019

Window & Home Décor is a locally-owned window treatment and home décor business serving the greater Houston area. Window & Home Décor specializes in custom designed shutters, blinds, shades, draperies and valances. Their experienced designers offer in-house consultation and oversee the design process through installation. The Window & Home Décor showroom also features a variety of unique merchandise including beds, bedding, rugs, artwork, lamps, mirrors and accessories, ideal for the growing residential neighborhoods in west Houston.

www.windowandhomedecor.com

*Assumes one-year Master Lease of remaining 2,100 SF vacancy. Current NOI excluding Master Lease is $317,084.

INVESTMENT OVERVIEW

Location: NWQ Westheimer Parkway and S Fry Road

Address: 20680 Westheimer Parkway, Katy, Texas 77450

Gross Area: 17,500 SF

Lot Size: 1.59 acres

Year Built: 2005

Occupancy*: 100%

Construction: Cinderblock, brick and EIFS façade and concrete parking lot

Parking Spaces: 78 spaces (4.46/1,000)

NOI*: $381,617

Sale Price: $5,200,000

Cap Rate*: 7.3%

TENANT OVERVIEW

4

http://www.conservatorydayspa.com/


Gentle Dental | 1,500 SF, Lease Expiration 12/31/2020

Gentle Dental offers a full range of general, cosmetic and reconstructive dentistry services such as teeth whitening, crowns, preventive care, emergency care and implants as well as pediatric dentistry. Utilizing state-of-the-art technology, Gentle Dental provides patients with an effective and affordable dental experience. Dr. Chih Chung, the primary dentist at the Cinco-Westheimer location, has over 20 years of dental experience both as a clinical Assistant Professor at NYU and owner of a private practice in New York prior to relocating to Texas. Gentle Dental was founded by Dr. Marina Akerman in 1987. Dr. Marina Akerman currently oversees the practice, operating two locations in the Katy trade area with five additional locations throughout northwest Houston. Gentle Dental received the Best of Katy award from 2010-2013.

www.texasgentledental.com

State Farm | 1,260 SF, Lease Expiration 8/31/2020

State Farm is a mutual company that makes its primary focus its policyholders. With more than 70,000 employees and nearly 19,000 independent contractor agents, State Farm services 82 million policies and accounts throughout the United States. State Farm was founded in 1922 with corporate headquarters located in Bloomington, Illinois. In 2017, State Farm was the 33rd Ranked Company on the Fortune 500 list and has been rated as the number one auto insurer in the United States since 1942. Tenant, Ed Perez, has been servicing State Farm customers since 1984 and is currently ranked as the number one Cinco Ranch Agent.

www.statefarm.com

9Round | 1,820 SF, Lease Expiration 4/30/2023

With over 690 locations across 40 states and 11 countries, 9Round is the largest and fastest-growing kickbox fitness franchise in the world. Founded in 2008 by professional kickboxer Shannon Hudson and his wife, Heather, 9Round is a specialized fitness center that brings boxing and kickboxing fitness training to the average person in a convenient, affordable, 30-minute, full-body circuit format. 9Round has continued plans for expansion and with plans that project a total of 1,000 locations opened by the end of 2018. 9Round has consistently ranked among the Entrepreneur Magazine’s prestigious Franchise 500 list from 2013-2018 and also ranked on Inc-5000’s list in 2017.

www.9round.com

TENANT OVERVIEW (CONT.)

5

http://www.kingwoodspeech.com/


HOUSTON OVERVIEW

HOUSTON’S NATION LEADING STATISTICS

Houston has a GDP of $524 billion, making it the fourth largest city in the United States and the largest city by population in Texas. The Perryman Group, a Texas-based economic and financial analysis firm, recently released its latest GDP, population and employment forecasts. The group expects the Houston metro area’s GDP to grow at a compound annual growth rate of 3.1 percent from 2015 to 2040 and reach $998.8 billion in 2040. Over 6.8 million people call the Houston metropolitan statistical area (MSA) home. Houston has consistently been a national leader in employment and population growth. The Houston MSA population grew by over 852,000 residents between 2010 and 2017, with an average of 120,000 projected new residents added each year. It also boasts the second fastest-growing housing market in the United States.

The Houston MSA has added over 1.2 million jobs over the past 25 years, ranking it third in the nation and currently hosts a record high 3,061,600 people employed with an additional 45,000 new jobs forecasted for 2018. The rapid job growth can be attributed to the 20 Fortune 500 headquarters, and 53 Fortune 1000 companies located in Houston, ranking it third among metro areas. The Houston MSA is currently ranked the number two metro for new and expanded corporate facilities and is the number one region in the state for corporate growth. The city’s healthcare sector was the largest sector in 2017, surpassing energy and continues to grow rapidly. The Texas Medical Center (TMC) is the largest medical complex in the world and the largest single employer in the city of Houston. With 21 renowned hospitals, 106,000 employees, 10 million visits per year, the TMC generates $25 billion in GDP, and is the 8th largest business district in the United States. There are currently $3 billion in construction projects underway, including the planned $1.5 billion TMC3 Collaborative Institute, a new research campus to leverage the collective power of TMC’s renowned institutions in a shared, centrally managed environment. Houston’s economy is also anchored by the Port of Houston, one of the world’s busiest ports. The Port of Houston is ranked first in the U.S. in both domestic import and export tonnage and second in the U.S. in total tonnage and creates more than one million Texas jobs, generating more than $265 billion in statewide economic impact equating to 16% of state GDP.

The city boasts a steadily growing housing market, currently ranked second in the nation in housing starts, behind Dallas. According to the Houston Association of Realtors, in 2017 Houston had multiple record-breaking months of single-family home sales, surpassing the historical 8,000 homes per month mark, while prices have continued on an upward trend. Tax rates are low and the city’s political climate is aggressively pro-business, with officials consistently opposing new zoning laws so as not to stifle the city’s growth.

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No. 2 Top Metros for New and Expanded Corporate Facilities Site Selection March 2018

No. 3 Top Metros for Job Growth Associated General Contractors of America March 2018

No. 2 Top Metro Metro Population Increase from 2016-2017 U.S. Census March 2018

No. 1 Most Industrial Construction in the Past Decade CommercialCafe October 2017

No. 2 Top U.S. Metro for Exports Department of Commerce October 2017

No. 2 Most Housing Starts Metrostudy May 2017

No. 1 Top Destination Cities U-Haul May 2017

No. 4 Top Metros Leading in Logistics Business Facilities Magazine July 2016

No. 1 Top Market for Real Estate Investment for 2015 Houston Chronicle October 2014

No. 1 Market to Watch in 2015 Urban Land Institute October 2014


• Located 25 miles west of Houston’s Central Business District, Katy is a nationally recognized, premier suburb of Houston. The area has experienced tremendous growth over the past 25 years and since 2010 has continued to expand at a rate of 21%, bringing the current population to over 340,000 people. Katy is expected to grow an additional 15% over the next five years and has an expected population of 550,000 by the year 2035.

• The economy in the Katy area accounts for over $21 billion in sales and includes over 11,000 companies with over 200 corporate headquarters. Situated along Interstate 10, Katy is adjacent to Houston’s renowned Energy Corridor with over 24 million SF of office. Leading area employers in Katy and the Energy Corridor include: Katy ISD, Academy Sports, BP North America, ConocoPhillips, GEICO, Schlumberger, Methodist Hospital West, Texas Children’s Hospital West and Memorial Hermann Katy.

• Katy is comprised of 13 master-planned communities with over 108,000 total homes. The property is located in Cinco Ranch, an affluent 8,092 acre master planned community which has previously claimed the top spot as the most active community of home building in the United States and fueled the residential growth in Katy for the last two decades.

• Katy’s growth is fueled by the nationally recognized, award-winning Katy ISD school system, which has grown to over 77,000 students.

• The demographics of the Katy area are grounded in a strong income base with an average household income of $127,000 and over 44% of the residents in this area holding a formal education of a Bachelor’s degree or higher.

DEMOGRAPHICS1 MILE 3 MILES 5 MILES

Population 10,031 98,079 254,078

Average HH Income $157,888 $148,903 $124,659

Owner Occupied Average Housing Value

$327,883 $303,058 $272,527

2017 Esri Demographic Estimates

TRAFFIC COUNTSWesthimer Pkwy W of S Fry Rd 26,399 cpd

S Fry Rd N of Westhimer Pkwy 29,060 cpd

Westheimer Pkwy

610

10

45

288

249

8

6

99290

59

Houston

Jersey Village

Sugar Land

Pearland

Katy

Westheimer Pkwy

KATY TRADE AREA OVERVIEW

7


PROJECTED ANNUAL OPERATING STATEMENT

8

Base Rent

Occupied Space 335,417

Master Lease Space 46,200

Gross Potential Rent 381,617

Total Reimbursements

Occupied Space 148,296

Master Lease Space 20,222

Gross Income 550,135

Less: General Vacancy –

Effective Revenue 550,135

Reimbursable Operating Expenses

CAM 19,998

Real Estate Taxes 117,617

Insurance 8,177

Utilities 6,326

Management Fee 16,400

Total Reimbursements 168,518

Net Operating Income $381,617Notes:• Reconciliation expected to occur at year end.


RENT ROLL AVAILABLE UPON EXECUTION OF

CONFIDENTIALITY AGREEMENT


TENANT EZ FloorsWindow & Home

Décor9Round DLG

CosmeticsProspective

TenantGentle Dental

Katy Retreat

C-R Nails Design

State Farm

Eat and Out Cafeteria

SQ. FT. 3,000 2,030 1,820 1,200 2,100 1,500 1,330 1,260 1,260 2,000

C-R

Nai

ls D

esig

n

Ea

t and

Out

C

afet

eria

DLG

Co

smet

ics

Pr

osp

ectiv

eTe

nant

Kat

y Re

trea

t

Gen

tle D

enta

l

EZ F

loo

rs In

c

Win

do

w &

Ho

me

Dec

or Auto-Care

USA

Fry

Rd

Westheimer Parkway

(Not a part)(Not a part)

26

26

26

LEASING PLAN

10


WESTPARK TOLLWAY

KATY FREEWAY

10

10

99

1463

1463

GREENBUSCH RD

WESTHEIMER PKWY

WESTHEIMER PKWY

S FR

Y RD

PEEK RD

S MASO

N RD M

ASON RD

CINCO BLVD

HIGHLA ND KNOLLS DR

FRY RD

FM 723 RD

S FRY RD

CINCO RANCH BLVDCINCO RANCH BLVD

202,000 CPD 193,000 CPD

GEORGE BUSH PARK

16,3

00 C

PD

65,000 CPD

116,000 CPD

76,000 CPD 94,000 CPD

Urgent Care

HARDWARE

PROPOSED

SITESITE

TRADE AREA MAP

11


Cinco Ranch 9,750 Homes

Seven Meadows2,300 Homes

Grand Lakes2,770 Homes

Parkway Lakes1,280 Homes

Lakemont2,500 Homes

Grayson Lakes527 Homes

Falcon Ranch

850 Homes

Churchill Farms

550 Homes

Bella Terra2,030 Lots

1,200 Occupied

Cardiff Ranch391 Homes Pine Mill

Ranch1,780 Homes

Cinco Ranch (Northwest)

1,150 Homes

CincoRanch

Westheimer Lakes2,800 Homes

Kelliwood1,550 Homes

Tamarron2,260 Lots

400 Occupied

MemorialParkway

2,000 Homes Jordan Ranch

2,905 Lots

Parkside Capital

Parkside Capital

Willow Creek Farms1,040 Lots

800 Occupied

Firethorne3,600 Lots

2,700 Occupied

Cross Creek Ranch5,955 Lots

2,340 Occupied

Tails of Katy360 Lots

70 Occupied Young Ranch

900 Lots

FM 358

Texa

s Her

itage

Pkw

y (E

st. C

ompl

etio

n Q

4 20

18)

GREENBUSCH RD

WESTHEIMER PKWY

WESTHEIMER PKWY

S FR

Y RD

PEEK RD

S MASO

N RD M

ASON RD

CINCO BLVD

HIGHLA ND KNOLLS DR

FRY RD

FM 723 RD

S FRY RD

CINCO RANCH BLVDCINCO RANCH BLVD

FM 1083

1463

1463

99

10

10KATY FREEWAY

WESTPARK TOLLWAY

202,000 CPD 193,000 CPD

GEORGE BUSH PARK

16,3

00 C

PD

65,000 CPD

116,000 CPD

76,000 CPD 94,000 CPD

SITESITE

TRADE AREA RESIDENTIAL MAP

12


CONFIDENTIALITY AGREEMENT & DISCLAIMERTranswestern1900 West Loop South, Suite 1300Houston, TX 77027713.270.7700 / Fax 713.401.1461

CONFIDENTIALITY STATEMENTCinco-Westheimer Shopping Center 20680 Westheimer PkwyKaty, TX 77450

The undersigned has been advised that Transwestern Property Company SW GP, L.L.C. dba Transwestern has been retained on an exclusive basis by the Owner with respect to the offering or sale of Cinco-Westheimer Shopping Center, 20680 Westheimer Pkwy, Katy, TX 77450 (the “Property”). The Owner has indicated that all inquiries and communications with respect to the contemplated sale of such Property be directed to Transwestern. All fees due Transwestern in connection with the sale of the Property shall be paid by the Owner. The undersigned hereby acknowledges that it is a principal or an investment advisor in connection with the possible acquisition of the Property and agrees that it will not look to the Owner, the Owner’s Lender or Transwestern for any fees or commissions in connection with the sale of the Property. The undersigned also hereby acknowledges that is has not dealt with any broker, other than Transwestern, and Co-Broker identified on subsequent signature page, regarding the acquisition of the Property, or if it has, the undersigned hereby agrees to indemnify the Owner, the Owner’s Lenders and Transwestern against any compensation, liability or expense, arising from claims by Co-Broker, or any other broker or other party the undersigned had dealings with in connection with the sale of the Property.

The Owner has available for review certain information (“Confidential Information”) concerning the Property. On behalf of the Owner, Transwestern may make such Confidential Information available to the undersigned upon execution of this Confidentiality Statement. The Confidential Information is intended solely for your own limited use in considering whether to pursue negotiations to acquire the Property.

This is not an agreement to sell the Property, nor an offer of sale. No agreement binding upon the Owner of the Property, or any of its associated or affiliated companies, shall be deemed to exist, at law or equity, until the Owner of the Property enters into a formal binding agreement of sale.

The Confidential Information contains brief, selected information pertaining to the business and affairs of the Owner, and has been prepared by Owner and Transwestern, primarily from information supplied by the Owner or Owner’s Agent. It does not purport to be all inclusive or to contain all the information which a prospective purchaser may desire. Neither Transwestern, the Owner nor the Owner’s Lender make any representation or warranty, express or implied, as to the accuracy or completeness of the Confidential Information and no legal liability is assumed or to be implied with respect thereto.

By executing this Confidentiality Statement you agree that the Information provided is confidential, that you will hold and treat it in the strictest of confidence, and that you will not disclose or permit anyone else to disclose the Information to any person, firm or entity without prior written authorization of the Owner and Transwestern except that the information may be disclosed to your partners, employees, legal counsel and lenders or pursuant to a court order. Owner expressly reserves the right in its sole discretion to reject any or all proposals or expressions or interest in the property and to terminate discussions with any party at negotiations you hereby agree to return the Confidential Information to Transwestern.

13


On Behalf of Prospective Purchaser: Co-Broker (if any):

Company: Company:

Address: Address:

City: City:

State: ZIP: State: ZIP:

Phone: Phone:

Fax: Fax:

E-mail: E-mail:

By: By:

Its: Its:

Date: Date:

Signature: Signature:

14

INFORMATION ABOUT BROKERAGE SERVICES

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 writtenagreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold orunderlined 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 todisclose, 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.

Buyer/Tenant/Seller/Landlord Initials

Reglated by the Texas Real Estate Commission Information available at www.trec.texas.govIABS 1-0

Date

Licensed Broker/Broker Firm Name or Primary Assumed Business Name

Designated Broker of Firm

Sales Agent/Associate's Name

License No.

License No.

License No.

Email

Email

Email

Phone

Phone

PhoneTranswestern Property Company SW GP, L.L.C

[email protected]

[email protected]

Steve Ash

Micha van Marcke

466196 713.270.7700

713.270.3365

713.272.1231

392519

489879

Texas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

Transwestern | 1900 West Loop South, Suite 1300 | Houston, TX 77027 | P: 713.270.7700 | www.twhoustonretail.comThe information contained herein was obtained from sources believed reliable. However, Transwestern makes no guarantees, warranties or representations as to the completeness or accuracy thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions, prior sale or lease, or withdrawal without notice.

Micha van Marcke, CCIMSenior Vice [email protected]

713.272.1231

Chace HenkeVice [email protected]

713.272.1274

FOR INFORMATION CONTACT:

cinco-westheimer parkway plaza - transwestern · 2018. 5. 16. · cinco-westheimer parkway plaa...

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