investment offering | $1,980,000 express_tx_lake jackson_marketing... · which in houston almost...

214.915.8890

JOE CAPUTO

[email protected]

BOB MOORHEAD

[email protected]

RUSSELL SMITH

[email protected]

INVESTMENT OFFERING | $1,980,000

PANDA EXPRESS

102 Texas Hwy 332, Lake Jackson, TX – Houston Metro

property. New 2,448+ SF building on 0.74+ acre site.

tenant. Panda Restaurant Group, (PRG) is the largest and fastest growing Asian restaurant company in the US. PRG operates Panda Inn, Panda Express and

Hibachi-San - 1,500+ units.

lease structure. New, 20-year, Absolute NNN – Ground Lease with 10% rent increases every 5-years in base term and option periods.

location. Panda Express is strategically located along Hwy 332 (21,600 Cars / Day) in a dense retail area of Lake Jackson. Hwy 332, known as “SH 332”, is a

15-mile, northwest-southeast thoroughfare in the region. South of the subject property, SH 332 merges into Nolan Ryan Expressway (42,200 Cars / Day). Nolan

Ryan Expressway (Hwy 288) is an arterial north-south highway in the region; it begins in Houston and provides direct access to the site and surrounding area. This

geographic advantage has spurred large scale retail development in the immediate trade area. The subject property is a pad site to Brazos Mall (682,831 SF) and

is surrounded by a variety of big box retailers. Brazos Mall features over 73 tenants and is anchored by Dillard’s, JC Penny, Sears, and Starplex Cinemas. National

credit tenants within 1-mile of the subject property include Walmart, Target, Home Depot, Best Buy, Office Depot, Office Max, Big Lots!, Kohl’s, Ross, Payless

Shoe Source, Dollar General, Academy Sports & Outdoors, McDonald’s, Chick-fil-A, Burger King, Whataburger, Texas Roadhouse, Popeye’s, Cici’s Pizza, and

many more. Lake Jackson is 50 miles south of Houston, TX.

Representative Photo

EXP Realty Advisors, Inc. (“Agent”) has been engaged as an agent for the sale of the

property located at 102 Texas Hwy 332, Lake Jackson, TX by the owner of the Property

(“Seller”). The Property is being offered for sale in an “as-is, where-is” condition and Seller

and Agent make no representations or warranties as to the accuracy of the information

contained in this Offering Memorandum. The enclosed materials include highly confidential

information and are being furnished solely for the purpose of review by prospective

purchasers of the interest described herein. The enclosed materials are being provided

solely to facilitate the prospective investor’s own due diligence for which it shall be fully and

solely responsible. The material contained herein is based on information and sources

deemed to be reliable, but no representation or warranty, express or implied, is being made

by Agent or Seller or any of their respective representatives, affiliates, officers, employees,

shareholders, partners and directors, as to the accuracy or completeness of the information

contained herein. Summaries contained herein of any legal or other documents are not

intended to be comprehensive statements of the terms of such documents, but rather only

outlines of some of the principal provisions contained therein. Neither the Agent nor the

Seller shall have any liability whatsoever for the accuracy or completeness of the

information contained herein or any other written or oral communication or information

transmitted or made available or any action taken or decision made by the recipient with

respect to the Property. Interested parties are to make their own investigations, projections

and conclusions without reliance upon the material contained herein. Seller reserves the

right, at its sole and absolute discretion, to withdraw the Property from being marketed for

sale at any time and for any reason. Seller and Agent each expressly reserves the right, at

their sole and absolute discretion, to reject any and all expressions of interest or offers

regarding the Property and/or to terminate discussions with any entity at any time, with or

without notice. This offering is made subject to omissions, correction of errors, change of

price or other terms, prior sale or withdrawal from the market without notice. Agent is not

authorized to make any representations or agreements on behalf of Seller. Seller shall

have no legal commitment or obligation to any interested party reviewing the enclosed

materials, performing additional investigation and/or making an offer to purchase the

Property unless and until a binding written agreement for the purchase of the Property has

been fully executed, delivered, and approved by Seller and any conditions to Seller’s

obligations hereunder have been satisfied or waived. By taking possession of and

reviewing the information contained herein, the recipient agrees that (a) the enclosed

materials and their contents are of a highly confidential nature and will be held and treated

in the strictest confidence and shall be returned to Agent or Seller promptly upon request;

and (b) the recipient shall not contact employees or tenants of the Property directly or

indirectly regarding any aspect of the enclosed materials or the Property without the prior

written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be

copied or otherwise reproduced without the prior written authorization of Seller and Agent.

Disclaimer

PAGE 6: LOCATION OVERVIEW

PAGE 9-10: LOCATION MAPS

PAGE 11: DEMOGRAPHICS

Table of contents | Disclaimer PANDA EXPRESS

102 Texas Hwy 332, Lake Jackson, TX

PAGE 3: INVESTMENT | TENANT OVERVIEW

PAGE 1: COVER

PAGE 2: TABLE OF CONTENTS | DISCLAIMER

PAGE 4: AERIAL PHOTO

PAGE 5: SITE PLAN

CONSTRUCTION PROGRESS 4.21.14

PAGE 7-8: BRAZORIA COUNTY DEVELOPMENT OVERVIEW

SUBJECT PROPERTY PRIOR TO PANDA EXPRESS EXPANSION

PRICE: $1,980,000

NET OPERATING INCOME: $99,000

BUILDING AREA: 2,448+ Square Feet

LAND AREA: 0.74+ Acres

YEAR BUILT: 2014

LANDLORD RESPONSIBILITY: None

OWNERSHIP: Fee Simple Interest

OCCUPANCY: 100%

Tenant overview

3

Investment overviewPANDA EXPRESS


Lease Expiration: June 2034

Rent Commencement: June 2014

Initial Lease Term: 20-Years, Plus 4, 5-Year Options to Renew

PANDA EXPRESS, INC., a California Corporation

Rent Increases: 10% Every 5-Yrs In Base Term & Options

Year 1-5 Annual Rent (Current): $99,000

Lease Type: Ground Lease – Absolute NNN

Year 6-10 Annual Rent: $108,900



Year 21-25 Annual Rent (Option 3): $144,945

Lease overview


PANDA EXPRESS | www.pandaexpress.com

The privately-held Panda Restaurant Group, Inc. (PRG) is the largest and fastest growing Asian restaurant company in the nation. Today, under the leadership of

Founder and Chairman Andrew Cherng and his wife, Co-Chair Peggy Cherng, PhD, PRG operates three concepts – Panda Inn, Panda Express and Hibachi-San

– totaling over 1,500 units, with close to 20,000 associates in 42 states and Puerto Rico.

While versatile in non-traditional venues such as malls, airports and amusement parks, the majority of Panda’s portfolio consists of street locations. Panda

continues to aggressively accelerate its development focusing on end-caps, free standing buildings and drive-thru concepts. In 1997, Panda opened its first drive-

thru restaurant in Hesperia, Calif., paving the way to over 400 drive-thru units today. From granite table tops, to vibrant colors and cultural décor, Panda Express

restaurants reflect the company’s uncompromising passion for bringing quality Chinese food to neighborhoods across the United States.

Same store sales, the industry’s benchmark measurement of growth, have increased consecutively for 13 years from 1996 to 2008 with revenue exceeding $1.7

Billion in 2012. New restaurants continue to open at a fast pace - including close to 650 new locations just in the last four years. Panda Express is the growth

engine of PRG, designed for people who welcome the exciting tastes of Chinese food.



Right of First Refusal: Yes

Aerial PHOTOPANDA EXPRESS


4

Jerry’s

Food King

SITE PLANPANDA EXPRESS


5

IMMEDIATE TRADE AREA

Panda Express is strategically located along Hwy 332 (21,600 Cars / Day) in a

dense retail area of Lake Jackson. Hwy 332, known as “SH 332”, is a 15-mile,

northwest-southeast thoroughfare in the region. SH 332 runs from Surfside

Beach, TX on the Gulf of Mexico, inland to Brazoria, TX. South of the subject

property, SH 332 merges into Nolan Ryan Expressway (42,200 Cars / Day).

Nolan Ryan Expressway (Hwy 288) is an arterial north-south highway in the

region; it begins in Houston and provides direct access to the site and

surrounding area. This location positions the subject property to capture

significant traffic volumes from a wide variety of areas in Lake Jackson.

This geographic advantage has spurred large scale retail development in the

immediate trade area. The subject property is a pad site to Brazos Mall

(682,831 SF) and surrounded by a variety of big box retailers. Brazos Mall

features over 73 tenants and is anchored by Dillard’s, JC Penny, Sears, and

Starplex Cinemas.

National credit tenants within 1-mile of the subject property include Walmart,

Target, Home Depot, Best Buy, Office Depot, PetSmart, Petco, Office Max, Big

Lots!, Kohl’s, Ross, Zales, Hobby Lobby, Dollar General, Enterprise, Aaron’s,

Academy Sports & Outdoors, Payless Shoe Source, Hastings, Discount Tire,

Tractor Supply Co., McDonald’s, Chick-fil-A, Burger King, Whataburger, Texas

Roadhouse, Popeye’s, Cici’s Pizza, Fuddruckers, Sonic, and many more.

LAKE JACKSON, TX

Lake Jackson is a city in Brazoria County, Texas within the Houston–Sugar

Land–Baytown metropolitan area, located 50 miles south of Houston, 45 miles

southwest of Galveston, and 8 miles north of the Gulf of Mexico. As of a 2010

U.S. Census Bureau estimate, the city population was 26,849.

Lake Jackson is situated in the heart of the retail center of southern Brazoria

County. It is in close proximity to the world's largest petrochemical complex and

related industries; major components of this complex include Dow Chemical

Company, BASF Corporation, Phillips Petroleum, and many more. In early

March, Dow Chemical Co. announced plans to build a massive new research

and development campus in Lake Jackson. The 900,000-square-foot, five-

building campus, will house 2,000 employees and is expected to be completed

by 2016. This state of the art administrative facility will support various

businesses, R&D and manufacturing operations across the Gulf Coast, and is

projected to expand the downtown area with more retail and restaurant

development due to the increased workforce. Lake Jackson’s proximity to

Houston, along with other local resources and facilities, have continued to fueland promote growth in the area.

LOCATION OVERVIEWPANDA EXPRESS


6

HOUSTON-SUGAR LAND-BAYTOWN METROPOLITAN AREA

The Houston-Sugar Land-Baytown Metropolitan Statistical Area (MSA),

colloquially known as Greater Houston, is the 6th largest in the United States

with a population of 5,946,800. From 2000 to 2030, the metropolitan area is

projected by Woods & Poole Economics to rank fifth in the nation in population

growth—adding 2.66 million people.

In 2013, Houston was placed in Forbes’ “Top 5 Best Big Cities for Jobs”. The

Greater Houston Gross Metropolitan Product (GMP) in 2014 is projected to be

$488.7 billion, up 5.4 percent from 2013 GMP of 463.7 billion. Between 2012

and 2013, Houston’s GMP increased 3.1 percent. Only 28 nations other than

the United States have a GDP exceeding the Greater Houston GMP. Mining,

which in Houston is almost entirely oil and gas exploration and production,

accounts for 11 percent of Greater Houston's GMP.

Houston is second to New York City in Fortune 500 headquarters. Galveston

Bay and the Buffalo Bayou together form one of the most important shipping

hubs in the world, and the Port of Houston, the Port of Texas City, and the Port

of Galveston are all major seaports located in Greater Houston. The area is

one of the leading centers of the energy industry, particularly petroleum

processing, and many companies have large operations in this region. The

MSA comprises the largest petrochemical manufacturing area in the world. The

area is also the world's leading center for building oilfield equipment, and is a

major center of biomedical research, aeronautics, and high-technology.

Because of these economic trades, many residents have moved to the

Houston area from other U.S. states, as well as hundreds of countries

worldwide.

Houston is home to the Texas Medical Center—the largest medical center in

the world—several universities (including Rice University, Texas Southern

University, and The University of Houston), and two of the largest systems of

higher learning in the United States (The Houston and Lone Star Community

College systems). The University of Houston’s annual impact on the Houston-

area's economy alone equates to that of a major corporation: $1.1 billion in new

funds attracted annually to the Houston area, $3.13 billion in total economic

benefit, and 24,000 local jobs generated.

Recent accolades include:

The Brookings Institution ranked Houston as the fastest growing economy

in North America; Houston posted 118,200 new jobs in 2012 and added

more than 87,600 new jobs in 2013.

The Association of Foreign Investors in Real Estate (“AFIRE”), recently

named Houston the 5th best city in the world for commercial real estate

investment.

“Boom times on the bay”It took Brazoria County 150 years to reach a value of $21 billion, a number which is expected to double in the next 10 years due to an influx of

development spurred by shale plays.

Right now the taxable value of Brazoria County is around $21 billion, said Robert Worley, president and CEO of the Economic Development Alliance for Brazoria County. In

the next 10 years, there is expected to be $21 billion of industrial investment in Brazoria County, he said, and almost all because of shale gas. “It took us 150 years to get to

a value of $21 billion, and we are going to double the taxable value of the county in the next 10 years,” he said. “And that’s only direct capital investment – not retail

shopping centers, new roadway, etc. The trailing investments for these projects will go on for the next 15 years…”. As highlighted on the next page, a variety of

developments taking place in the Gulf Coast area have spurred monumental growth in Brazoria County.

1. Ryan, Molly. "Boom times on the Bay." Houston Business Journal [Houston] 21 Mar. 2014, Centerpiece sec.: 18. Print.

BRAZORIA COUNTY DEVELOPMENT OVERIVEWPANDA EXPRESS


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Dow Chemicals is building a five-

building, 900,000-square-foot

R&D center in Lake Jackson for

2,000 Employees.

$9.4B

Amount of planned industrial

investment between 2011

and 2013 in Brazoria County

6,800+

Number of construction workers

estimated to be needed in Brazoria

County from industrial investments

between 2011 and 2013

955+

Number of estimated new direct

company jobs to be created in Brazoria

County from the industrial investments between 2011 and 2013

4,485+

Number of estimated direct and indirect

jobs created in Brazoria County from

the industrial investments between 2011 and 2013

Sources: American Chemistry Council and the Economic Development Alliance for Brazoria County

BRAZORIA COUNTY DEVELOPMENT OVERIVEWPANDA EXPRESS


8

1. TENARIS STEEL PLANT

Luxembourg-based Tenaris SA (NYSE:

TS), a steel pipe firm with its U.S.

headquarters in Houston, is building a $1.5

billion steel pipe manufacturing facility in

Bay City, TX. The plant will create about

600 permanent jobs and be complete by

2016.

2A & 2B. PHILLIPS 66 NEW PLANT

Phillips 66 (NYSE: PSX) is investing $3

billion in two Brazoria County projects which

are expected to create 50 full-time jobs as

well as more than 1,000 construction jobs.

The Houston-based company is building a

100,000-barrel-per-day fractionator near its

refinery in Sweeny, TX, to supply natural

gas liquids to the petrochemical industry

and heating markets. It is expected to start

up in the third quarter of 2015. It is also

building a $1 billion liquefied petroleum gas

export terminal – its first ever – in Freeport,

Texas, to tap international markets for their

propane and butane needs. Initial capacity

will be 4.4 million barrels per months, and

startup is expected in mid-2016.

3. CHEVRON PHILLIPS EXPANSION

The woodland-based Chevron Phillips

Chemical Company LP plans two new

polyethylene units, as well the expansion of

its ethylene production capacity in Old

Ocean, Texas. The expansions are part of

the company’s $6 billion Gulf Coast

Petrochemicals project, which is complete in

2017 and will create 10,000 engineering and

construction jobs.

4. NEW COMMUNITY

Dallas-based Hillwood Communities will

break ground this spring on its first Houston-

area master-planned community, named

Pomona, near Highway 288 in Manvel, about

The 20 mils south of downtown Houston. The

$700 million development, with Houston-

based McGuyer Homebuilders Inc., will sit on

1,00 acres and include 2,100 single-family

homes ranging in price from $250,000 to

$400,000. It will include a new elementary

school and possibly a new junior high.

5. DOW’S NEW R&D CENTER

The Dow Chemical Co. (NYSE: DOW) in

early March revealed plans to build a

massive research and development center in

Lake Jackson, Texas. The five-building

Texas Innovation Center will house about

2,000 of the Michigan-based company’s

employees. The five buildings, which total

about 900,000 square feet, will be on a 50-

acre site. In addition to two R&D buildings,

there will be an administration building, a

visitor center, and an employee amenities

center. Houston-based Core Real Estate LLC

will have completed the project in 2016.

6. DOW’S CHEMICAL EXPANSION

Dow is also planning an extensive chemical

expansion at its immense Freeport complex as

part of a $4 billion Gulf Coast expansion

project. In Freeport, the expansion includes

adding two performance plastics expansions, a

propylene production facility and a new

ethylene unit. Between 400 and 500

permanent new jobs are expected to be

created when the project is complete in 2017.

Also Dow’s joint-venture with Japan-based

Mitsui plans to build a chlor-alkali plant in

Freeport. According to Dow, the company

currently has 3,000 to 4,000 construction

contractors at its Freeport site.

7. NEW GROCER

The Representatives for the San Antonio-

based grocer H-E-B confirmed plans are

underway for a new store in Lake Jackson. It

is slated to open in Spring 2015 and will be at

the corner of Oyster Creek and Oak drives.

8. BASF NEW PLANT

BASF SE, the German chemical giant, is

building a new production plant for emulsion

polymers in Freeport. The $90 million

investment is expected to create 20 permanent

jobs as well as 200 construction jobs at its

peak. The project is expected to be complete

this summer.

9. FREEPORT LNG EXPORT FACILITY

B Houston-based Freeport LNG Expansion LP

plans to spend about $13 billion to construct a

liquefied natural gas export facility in Freeport

that would employ 3,500 construction workers

and create 160 permanent jobs. Freeport LNG

received approval to export LNG, but is waiting

for authorization to construct and operate its

liquidation facility. The authorization is

expected to come through in the third quarter,

and, once this happens, Freeport LNG can

begin its four-five year construction process.

1. Ryan, Molly. "Boom times on the Bay." Houston

Business Journal [Houston] 21 Mar. 2014, Centerpiece

sec.: 18. Print.

LAKE

JACKSON

LOCATION MAPPANDA EXPRESS


9

LOCATION MAPPANDA EXPRESS


10

Demographic snapshot

DEMOGRAPHICSPANDA EXPRESS


11

Radius 1 Mile 3 Mile 5 Mile

Population:

2019 Projection 7,004 35,497 54,421

2014 Estimate 6,576 33,167 50,753

2010 Census 6,464 32,065 48,635

Growth 2014-2019 6.51% 7.03% 7.23%

Growth 2010-2014 1.73% 3.44% 4.35%

Households:

2019 Projection 2,848 13,508 19,845

2014 Estimate 2,675 12,622 18,483

2010 Census 2,639 12,244 17,737

Growth 2014 - 2019 6.47% 7.02% 7.37%

Growth 2010 - 2014 -0.89% 3.16% 3.11%

Owner Occupied 1,399 8,664 12,300

Renter Occupied 1,275 3,957 6,183

2014 Avg Household Income $69,920 $84,265 $75,904

2014 Med Household Income $56,839 $69,568 $59,627

2014 Households by Household Inc:

<$25,000 403 1,572 3,179

$25,000 - $50,000 751 2,889 4,486

$50,000 - $75,000 531 2,257 3,340

$75,000 - $100,000 503 2,267 3,034

$100,000 - $125,000 187 1,588 2,013

$125,000 - $150,000 115 788 913

$150,000 - $200,000 123 601 745

$200,000+ 63 660 774

Downtown Houston, Texas

Brazos Mall, Lake Jackson, TX

investment offering | $1,980,000 express_tx_lake jackson_marketing... · which in houston almost...

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