houston msa (rosharon), texas • executive summary · • fastest growing market for household...

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ROSHARONROSHARONROSHARONROSHARON

ALVINALVINALVINALVIN

HOUSTONHOUSTONHOUSTONHOUSTON

ANGLETONANGLETONANGLETONANGLETON

FM 1462FM 1462FM 1462

PALM CRESTPALM CRESTPALM CRESTPALM CREST

Proposed Grand Parkway

Proposed Grand ParkwayCR 60CR 60CR 60

SCHLUMBERGERSCHLUMBERGERSCHLUMBERGERSCHLUMBERGER

Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp., a Texas licensed real estate broker (“HFF”).

HOUSTON MSA (ROSHARON), TEXAS • EXECUTIVE SUMMARY

±125 Acres - NEC 288 & FM 1462

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HFF, has been retained on an exclusive basis to offer qualified investors an exceptional opportunity to acquire ±125 acres located at the northeast corner of Highway 288 and FM 1462 south of Houston, Texas. The Property sits prominently at the largest intersection on Highway 288 between Highway 6 and Angleton. Possessing close to a half mile of frontage along the major corridor connecting Houston to Pearland, Angleton, Lake Jackson, and Freeport, the Property is ideal for a variety of uses.

INVESTMENT HIGHLIGHTS

• Prominently located at Highway 288 and FM 1462, one of the largest intersections in Brazoria County. This is currently the only constructed overpass on Highway 288 between Highway 6 and Angleton.

• Not in the floodplain.

• No zoning, no restrictions.

• Highway 288 is slated for expansion with a tollway from Houston, and the Texas Medical Center southward to CR 58 just north of Highway 6. Future plans will continue the expansion to CR 60.

• The proposed Grand Parkway is planned to intersect with Highway 288 approximately 1.5 miles north of the Property.

• The only easily developable corner at the intersection, due to floodplain and highline power line constraints at the remaining corners.

• Houston continues to experience rapid population growth.

THE DEVELOPMENT

Frontage Highway 288: FM 1462:

2,423 Feet1,723 Feet

Floodplain The Property does not lie within the floodplain.

Tax Information 2015 Tax Rate: 2.419980%

The Property is currently under an Agriculture exemption and is valued as such.

+125 Acres

Executive Summary

125 Acres | Houston MSA (Rosharon), TX 2

FM 1462

HIGHWAY 288 EXPANSION

Highway 288 is a major commuter system through the Houston MSA. It serves as the primary route that funnels into downtown Houston from all areas directly south of the city. It links downtown Houston, with the Texas Medical Center, traversing southwardly crossing Interstate 610, Beltway 8, Highway 6, FM 1462, Highway 35, FM 2004, and Highway 36 before it terminates in Freeport at the Gulf of Mexico. In the path it connects Houston, Pearland, Manvel, Rosharon, Angleton, Lake Jackson, and Freeport. Highway 288 serves as more than just a commuter highway into Houston, but also a major transportation route for the industry in Freeport as well as the industry along its path.

Currently, Highway 288 is planned to undergo an expansion, which will serve as a major relief to commuters who have seen congestion rise under the region’s tremendous growth. With a total construction estimate of $960 million, this is truly a large scale expansion. The new roadway will have toll lanes running in the current median of highway 288. The current project spans from US 59 to CR 58, just north of Highway 6, and is scheduled for construction to begin in 2016 with the toll roads open to traffic in 2019. Additionally, TxDOT has plans to bring the expansion to CR 60 in Brazoria County, only 1.5 miles north of the Property.

See http://www.txdot.gov/inside-txdot/projects/studies/houston/sh288.html for more information.

PROPOSED GRAND PARKWAY

The Grand Parkway has been a strong driving force of growth throughout the Houston MSA and, in many cases, has contributed to the success of numerous development projects. Notable successes include, New Territory, Long Meadow Farms, Cinco Ranch, LaCenterra, Bridgeland, Fairfield, Springwoods, and the ExxonMobil Campus in The Woodlands.

The road is planned as an outer loop of Houston, and currently connects Sugar Land at US 59 in southwest Houston and travels clockwise northward to Cypress, with construction near finished on segments connecting Cypress to The Woodlands and on to the Kingwood area in northeast Houston.

Additionally, work is scheduled to begin on the northeast segment connecting Kingwood to the already existing portions in Baytown.

Segments B and C of the Grand Parkway will connect from US 59 and travel east crossing Highway 288 and onward to Interstate 45. The current proposed alignment will intersect Highway 288 at CR 60, just 1.5 miles north of the Property.

See http://www.grandpky.com for more information.

SCHLUMBERGER ROSHARON TECHNOLOGYCENTER

Less than two miles from the Property, Schlumberger maintains a corporate presents with the Schlumberger Rosharon Technology Center. The center specializes in R&D, manufacturing efforts focusing on new product development, as well as additional research on optimizing engineering techniques. The facility employs approximately 800 highly educated employees from about 30 countries.

See http://www.slb.com/about/rd/technology/src.aspx for more information.

LAKE JACKSON

Lake Jackson is experiencing a strong wave of growth, as the city takes advantage of its stronghold in the petrochemical industry and influx of newcomers. The largest employers such as Dow Chemical, Freeport LNG, and Phillips 55 have major expansion projects planned or currently under construction in the area. An estimated 20,000 construction workers are pouring in to bring these expansion projects to fruition. The growth spurt fueled by nearly $30 billion in projects from big industries and housing developments is transforming Lake Jackson and the surrounding towns.

Dow recently announced an additional $4 billion dollar investment into the region including new R&D facilities, a new ethylene cracker, a new propylene plant, and more into what was already the largest chemical plant in the Western Hemisphere. Other companies such as BASF and Freeport LNG also have large scale projects which will collectively add approximately 7,000 new high paying jobs to the region by 2017.

Area Highlights


Survey


Houston Market Overview

HOUSTON, TEXAS: A ROBUST LOCALECONOMY

Named the Number One Market to Watch in 2015 by ULI and PwC for both investment and development prospects, Houston has consistently been a national leader in employment and population growth and is ranked as one of the most affordable, diverse and cultural cities in the nation. Houston’s mid-continent location coupled with its position along the Gulf of Mexico makes it a natural hub of the United States.

Houston Economic Engine

• Perennial Outperformer: Houston led all other major metropolitan areas with 4.7% GDP growth since 2000.

2.2 million residents within Houston, making it the

largest city in Texas & 4th most populous U.S. City

• With metropolitan GDP of more than $517 billion, Houston is the 4th largest U.S. metro economy. It grew 5.2% in 2013, the largest increase among nation’s 50 largest metro areas.

• It is the world’s 25th largest economy, ahead of countries such as Norway and Belgium.

• 27 Fortune 500 and 52 Fortune 1000 companies are based in the Houston area, ranking 3rd in U.S.

• Fastest growing market for household income from 2000-2012.

Population: Young, Dynamic, Educated

• With 2.2 million residents Houston is the largest city in Texas and the 4th most populous U.S. city.

• With 6.5 million residents the Houston MSA is the 5th most populous metropolitan area.

• Since 2000, the Houston MSA has added 1.8 million residents, growing an average of 10,000 residents per month.

• The Houston metropolitan area ranked first for population growth in 2014, adding 156,371 new residents or one person every 3.4 minutes.

• As of May 2015, Moody’s Analytics projects Houston will lead the nation in five-year population growth from 2014-2019 on an absolute basis (680,010 new additions).

• Houston experienced a 40% increase in college-degreed professionals over the last ten years – double the rate of growth of most other US cities

• #1 in STEM employment growth from 2001-2013, ahead of Seattle, D.C, Riverside, Dallas, Phoenix & San Francisco.

• The average age of Houston’s residents is 32 years old; well below the national average of 37.

4.7%

Billion in metro GDP

Metro GDP growth in 2013

GDP Growth Since 2000

25th

26

Largest Economy

517

5.2%

$Houston is the 4th largest U.S. metro Economy

Energy-related establishments

3,700Houston is known as the,

“Energy Capital of the World.

Largest increase among the nation’s 50 largest metro areas.

Ahead of countries such as Norway & Belgium

FASTEST Growing MarketMarket for household Income between 2000 and 2012

Fortune 500

52Fortune 1000in Houston; ranking 3rd in the U.S

36.7Million SF of office & medical spaceTexas Medical Center is the largest medical complex in

the world.



Employment

• Approximately 3.0 million jobs within the Houston MSA; more than 36 states in the U.S.

• With 1.17 million jobs added (3.4% annual increase) since 1990, the Houston MSA is 2nd only to the Dallas / Ft. Worth MSA among major metros in job growth on an absolute and relative basis.

• Over the last five years, the metropolitan area has created 445,400 net new jobs, including 104,700 jobs in 2014 for a 3.6% increase. This translates to nearly three new jobs for every one job lost in the nation’s most recent recession.

• Despite softening in the energy sector, projected job growth remains robust with major analytics firms such as Moody’s, Axiometrics, University of Houston and the Greater Houston Partnership forecasting average employment additions of 66,000 (2.2%) for 2015.

• As of May 2015, Moody Analytics projects Houston to rank 3rd in the nation for five-year employment growth from 2014-2019 on an absolute basis (328,780 additions).

Global Presence

• 103 countries have business offices and/or government representation in Houston including 92 consular offices, ranking 3rd in U.S.

• 456 Houston companies have offices abroad in 210 countries and 1,414 firms report foreign ownership.

• The value of foreign trade passing through Houston has more than doubled over the past decade. $253.3 billion in trade value was handled by the Houston-Galveston Customs Districts in 2014, ranking 5th busiest in the U.S.

• Forty-one countries logged more than $1 billion in trade through the customs district in 2014 with Mexico, China and Brazil ranking as Houston’s top three trade partners.

• More than 1.4 million Houstonians or more than 1 in 5 are foreign-born. Houston MSA ranks 4th nationally in number of Hispanics and 7th in number of Asians.

Business Sector

• With 3,700 energy-related establishments, Houston is known as the “Energy Capital of the World”.

• Houston employs one-third of the nation’s oil and gas extraction jobs.

• It’s not entirely about energy… While the Energy industry may be a major contributor to Houston’s GDP, the city has a highly diverse economy with strengths in medical, manufacturing, service and technology.

• Houston ranks number 1 for health care and manufacturing careers, number 2 for engineering, finance and accounting careers, and number 3 in green jobs and number 6 in computer science careers.

3.0 million jobs within the Houston MSA; more than 36

U.S. states 253.3 billion in trade value in 2014 handled by the Houston-Galveston Customs Districts; ranking 5th busiest in U.S.




Infrastructure

• Situated along the Houston Ship Channel, the 25-mile long complex ranks as the world’s 10th largest port.

• Houston has the largest export market in the U.S. ranking first in total tonnage and import tonnage (22 straight years) and second in foreign tonnage for 18 straight years.

• The Houston Airport System is the fourth largest airport system in the United States and sixth largest in the world.

• The Texas Medical Center is the world’s largest medical complex with 15 hospitals and over 100 professional office buildings housed in 45.8 million square feet.

Arts & Culture

• 19 museums in the 1.5 mile radius, “Museum District”, a hub for arts and culture.

• With 14,000+ seats, Houston’s theater district ranks second for most seats concentrated in a U.S. downtown district.

• 500 institutions are devoted to performing and visual arts, science and history.

• 5 professional sports teams are based in Houston.

• Houston’s 50,000+ acres of parkland give it more green space than any other top ten metro.

Internationally Recognized Investment Market

• Houston is consistently one of the best performing MSA’s in the nation for institutional office investors as measured by total return.

3 Year 5 Year 7 Year 10 Year 15 Year 20 Year

Market Cum. Return Market Cum. Return Market Cum. Return Market Cum. Return Market Cum. Return Market Cum. Return

1 FL - Miami 16.3% CA - San Francisco 19.0% CA - San Francisco 7.4% TX - Houston 10.9% NY - New York 11.7% NY - New York 12.2%

2 CA - San Francisco 16.0% CA - San Jose 16.9% CA - San Jose 6.8% NY - New York 10.7% CA - Los Angeles 9.8% WA - Seattle 11.8%

3 CA - San Jose 15.3% CO - Denver 14.4% UT - Salt Lake City 6.3% CA - San Francisco 10.6% DC - Washington 9.6% CA - San Francisco 11.8%

4 CO - Denver 14.8% NY - New York 13.8% FL - Miami 6.1% CA - San Jose 10.1% TX - Houston 9.1% CA - Los Angeles 11.0%

5 NC - Charlotte 14.8% FL - Miami 13.6% TX - Houston 6.1% FL - Miami 9.7% CA - San Diego 9.0% CA - San Diego 10.9%

6 MA - Cambridge 13.9% MA - Cambridge 13.3% CO - Denver 5.9% CA - Los Angeles 9.6% CA - San Francisco 8.9% MA - Boston 10.8%

7 TX - Houston 13.2% TX - Dallas 12.5% TX - Dallas 5.5% CO - Denver 9.1% FL - Miami 8.9% MA - Cambridge 10.7%

8 AZ - Phoenix 13.1% WA - Seattle 12.4% TX - Austin 5.3% TX - Austin 9.0% OR - Portland 8.8% CA - Santa Ana 10.5%

9 TX - Dallas 12.8% CA - Los Angeles 12.1% NY - New York 5.0% OR - Portland 8.8% MA - Boston 8.7% TX - Houston 10.2%

10 NY - New York 12.5% TX - Austin 11.8% OR - Portland 4.8% NC - Charlotte 8.3% TX - Austin 8.2% DC - Washington 10.1%

11 TX - Austin 12.1% NC - Charlotte 11.7% NC - Charlotte 4.4% MA - Boston 8.0% WA - Seattle 8.0% TX - Austin 10.1%

12 CA - Los Angeles 11.9% TX - Houston 11.6% PA - Philadelphia 4.3% WA - Seattle 7.9% NC - Charlotte 7.9% CA - Oakland 9.8%

NCREIF RANKINGS

Before working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner’s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer’s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly.   IF THE BROKER REPRESENTS THE OWNER: The broker becomes the owner’s agent by entering into an agreement with the owner, usually through a written listing agreement, or by agreeing to act as a subagent by accepting an offer of subagent from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner’s agent anything the buyer would not want the owner to know because an owner’s agent must disclose to the owner any material information known to the agent.   IF THE BROKER REPRESENTS THE BUYER: The broker becomes the buyer’s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer’s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer’s agent anything the owner would not want the buyer to know, because a buyer’s agent must disclose to the buyer any material information known to the agent.   IF THE BROKER ACTS AS AN INTERMEDIARY: A broker may act as an intermediary between the parties if the broker complies with The Texas Real Estate License Act. The broker must obtain the written consent of each party to the transaction to act as an intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermediary in a transaction: 1. shall treat all parties honestly; 2. may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner; 3. may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and 4. may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property.   With the parties’ consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party.   If you choose to have a broker represent you, you should enter into a written agreement with the broker that clearly establishes the broker’s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding.   TEXAS LAW REQUIRES THAT ALL REAL ESTATE LICENSEE’S PRESENT THIS INFORMATION TO PROSPECTIVE SELLERS, LANDLORDS, BUYERS OR TENANTS.   ACKNOWLEDGMENT: Please acknowledge your receipt of this information, for Broker’s records: [PROPERTY NAME] - [PROPERTY CITY, STATE]   ____________________________________________________________ OWNER (LANDLORD) OR BUYER (TENANT) OR AUTHORIZED REPRESENTATIVE Date:_______________________________

Information on Broker Services


©2016 HFF (Holliday Fenoglio Fowler, L.P.) and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate

HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter at twitter.com/hff.

HFF has been engaged by the owner of the property [properties] to market it [them] for sale. Information concerning the property [properties] described herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accuracy or

completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on

assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.

Investment sales

DAVIS ADAMSManaging DirectorTel [email protected]

MARK BRAMLETTAnalystTel [email protected]

9 Greenway Plaza, Suite 700

Houston, Texas 77046

Phone: 713-852-3500

Fax: 713-852-3490

www.hfflp.com

Contact Information

houston msa (rosharon), texas • executive summary · • fastest growing market for household...

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