kohl’s plaza - loopnet

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KOHL’S PLAZA3307 98TH STREET | LUBBOCK, TX 79423

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EXCLUSIVE MARKETING ADVISORSJARED AUBREYSenior Vice President+1 214 252 1031

[email protected]

MICHAEL AUSTRYFirst Vice President+1 214 252 1115

[email protected]

AUSTIN DIAMONDAssociate

+1 214 252 [email protected]

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OFFERING SUMMARY

PRICE: UNPRICED

CAP RATE: MARKET

3307 98TH STREET | LUBBOCK, TX

NET OPERATING INCOME $380,594

YEAR BUILT/RENOVATED 2005/2013

GROSS LEASEABLE AREA 49,500 SF

LOT SIZE 8.02 ACRES

OCCUPANCY 80.15%

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INVESTMENT HIGHLIGHTSKohl’s Shadow Anchored Center – Kohl’s Plaza is occupied by an established anchor tenant and multiple nationally recognized tenants such as Big Lots, Pizza Hut, and Dollar Tree

Texas Value-Add Shopping Center – Buyer can capture substantial upside and increase passive cashflow by leasing current available units

Strong Traffic Counts and Excellent Visibility – 98th Street and Indiana Avenue see a combined 41,819 vehicles per day

Strong Demographics in Densely Populated Lubbock Market – Average household income of over $92,000 within a 1-Mile radius far exceeds the average for Lubbock and the state of Texas overall

Surrounded by Ample Housing and Schools – Walking distance from 2 schools totaling over 1,200 students and multiple densely-populated residential developments

Business Friendly Climate – Texas is consistently ranked within the top 3 states for friendly business climate and strong economy across multiple nationally-recognized media outlets

Texas Has No State Income Tax

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TENANTS SF GLA %LEASE

COMMENCEMENTLEASE

EXPIRATIONANNUAL BASE RENT TOTAL

PIZZA HUT 2,400 4.85% JUNE 2018 MAY 2028 $39,600

TOES & T’S DESIGN WAREHOUSE 3,150 6.36% FEBRUARY 2015 AUGUST 2020 $50,400

OPI NAILS 1,600 3.23% OCTOBER 2013 SEPTEMBER 2023 $29,600

EDWARD JONES 1,324 2.67% MARCH 2007 FEBRUARY 2022 $19,200

AVAILABLE 1,203 2.43% JUNE 2020 MAY 2025 –

JACK & JILL DONUTS 1,200 2.42% MAY 2010 MAY 2020 $21,780

AVAILABLE 3,523 7.12% OCTOBER 2020 SPETEMBER 2025 –

BIG LOTS 30,000 60.61% SEPTEMBER 2013 JANUARY 2024 $262,500

AVAILABLE 2,550 5.15% DECEMBER 2020 NOVEMBER 2025 –

AVAILABLE 2,550 5.15% MARCH 2021 FEBRUARY 2026 –

TOTAL OCCUPIED 39,674 80.1% $423,080

TOTAL VACANT 9,826 19.9%

TOTAL 49,500 100%

TENANT ROSTER

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PROPERTY LOCATION

3307 98TH STLUBBOCK, TX

KOHL’S PLAZA

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A1 SITE PLAN

TOES N T'S3,150 SF

PIZZA HUT2,400 SF

OPI NAIL SALON1,600 SF

AVAILABLE

EDWARD JONES1,324 SF

AVAILABLE

JACK N JILL DONUTS1,200 SF

SITE PLAN

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PROPERTY AERIAL

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PROPERTY AERIAL

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PROPERTY AERIAL

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MASS MOBILE DATA STUDY ON KOHL’S PLAZA

This map was created by CBRE’s mobile technology platform called Mass Mobile Data (MMD). MMD is anonymous data gathered from the GPS trackers in one’s devices. By analyzing the sophisticated mobile data, CBRE is able to paint a picture of any property’s customer base.

Kohl’s Plaza attracts visitors from a widespread area which increases the true market potential for retailers exponentially. The property is not only appealing to the local customer base in Lubbock, but some from other areas as well. To illustrate this, the map uses data sourced from a wide range of mobile apps that shows where visitors of Kohl’s Plaza are coming from. Therefore, each dot creates an accurate picture of customers that have visited Kohl’s Plaza in the past 12 months. 60% of the site’s customers come from within the Kohl’s Plaza trade area.

WHERE ARE KOHL’S PLAZA’S VISITORS COMING FROM?

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Big Lots is an American retailer with over 1,400 locations across 47 states. These large format stores offer all types of home and lifestyle products, including: furniture, mattresses, patio and garden equipment, home decor, household essentials, pet supplies, holiday essentials, and much more. Big Lots employs 22,900 employees and is traded as BIG on the NYSE. In 2018, Big Lots reported a net income of over $165 Million and net sales of over $5.2 Billion.

TYPE: Retail

YEARS IN BUSINESS: 51

NO. OF LOCATIONS: 1,416

HEADQUARTERS: Columbus, OH

WEBSITE: biglots.com

SQ FOOTAGE: 30,000

% OF CENTER 60.61%

GUARANTOR Corporate

BIG LOTS

MAJOR TENANT OVERVIEW

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Pizza Hut is the world’s largest pizza chain by number of locations. This American restaurant chain and international franchise operates over 18,000 restaurants and employs over 300,000 employees worldwide. It is known for its Italian-American cuisine menu, which includes pizza, pasta, side dishes, and desserts. Pizza Hut is a subsidiary of Yum! Brands, which also owns brands such as KFC, Taco Bell, and Wingstreet. Traded on the NYSE as YUM, the company has been on the Fortune 500 list for 21 years.

TYPE: Restaurant


NO. OF LOCATIONS: 18,431

HEADQUARTERS: Plano, TX

WEBSITE: pizzahut.com

SQ FOOTAGE: 2,400

% OF CENTER 4.85%

GUARANTOR Franchise

PIZZA HUT

TENANT OVERVIEW

FRANCHISEFRANCHISEE: Campiza Foods, Inc d/b/a Pizza Hut

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Edward Jones is a financial servies firm serving nearly 7 million clients in the United States and Canada. The company has $1 Trillion in assets under management worldwide. Edward Jones’ sole focus is on small business owners and individual investors. Financial advisors offer commission-based and fee-based product offerings. With 16,095 brokers, Edward Jones has the largest number of brokers of any brokerage firms in the United States. Edward Jones is the only major U.S. brokerage firm to be led by a woman. The company is owned entirely by its employees and is not publicly traded.

TYPE: Financial Services


NO. OF LOCATIONS: 14,000+

HEADQUARTERS: St. Louis, MO

WEBSITE: edwardjones.com

SQ FOOTAGE: 1,324

% OF CENTER 2.67%

GUARANTOR Corporate

TENANT OVERVIEW

EDWARD JONES

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IN-PLACE NOIAS-IS AND STABILIZED NOI SUMMARY

As-Is NOI Stabilized NOIJan-20 to Dec-20 $ PSF Jan-20 to Dec-20 $ PSF

Size of Improvements 49,500 SF 49,500 SF

REVENUESScheduled Base Rent

Gross Potential Rent $580,296 $11.72 $580,296 $11.72Absorption & Turnover Vacancy (157,216) (3.18) 0 0.00

Total Scheduled Base Rent 423,080 8.55 580,296 11.72

CAM Reimbursement 37,777 0.76 45,888 0.93MGT Reimbursement 10,312 0.21 16,953 0.34INS Reimbursement 17,943 0.36 22,704 0.46RET Reimbursement 69,732 1.41 87,003 1.76

TOTAL GROSS REVENUE 558,845 11.29 752,844 15.21General Vacancy Loss 0 0.00 (35,173) (0.71)

EFFECTIVE GROSS REVENUE 558,845 11.29 717,672 14.50

OPERATING EXPENSESCommon Area Maintenance (50,500) (1.02) (50,500) (1.02)Management Fee (16,765) (0.34) (21,530) (0.43)Insurance (23,983) (0.48) (23,983) (0.48)Real Estate Taxes (87,003) (1.76) (87,003) (1.76)

TOTAL OPERATING EXPENSES (178,251) (3.60) (183,016) (3.70)

NET OPERATING INCOME $380,594 [1] $7.69 $534,655 [2] $10.80

Physical Occupancy 80.15% 100.00%Overall Economic Occupancy 78.04% 95.33%

Notes:

[1] As-Is Net Operating Income is calculated using contractual rents and expense reimbursements from Jan-20 to Dec-20 (less a 5.00% General Vacancy Loss, if necessary).As-Is NOI does not include vacant lease-up revenue or downtime due to near-term expirations, but does include future rent increases for existing tenants.Leases that are scheduled to expire within the first fiscal year of the analysis are assumed to continue in place at current rent.

[2] Stabilized NOI Assumptions: - All vacancies are leased up as of 01/01/20 at market rates. - Toes & TS and Design Warehouse and Jack & Jill Donuts are assumed to extend through 12/31/20 at current rents. - A general vacancy factor of 5.00% is applied, less Pizza Hut's and Kohl's revenue.

ssary

You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.

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EXISTING LEASE EXPIRATIONS

Suite Tenant End 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Thereafter Available1-100-07 Jack & Jill Donuts May-20 1,2001-100-03 Toes & TS and Design WarehouseAug-20 3,1501-100-05 Edward Jones Feb-22 1,3241-100-04 Opi Nails Sep-23 1,6002-100-10 Big Lots Jan-24 30,0001-100-01 Pizza Hut May-28 2,4001-100-06 Available NA 1,2031-100-08 Available NA 3,5232-100-12 Available NA 2,5502-100-13 Available NA 2,550

Totals: 4,350 0 1,324 1,600 30,000 0 0 0 2,400 0 0 9,826Percent: 9% 0% 3% 3% 61% 0% 0% 0% 5% 0% 0% 20%Count: 2 0 1 1 1 0 0 0 1 0 0 4

Cumulative SF: 4,350 4,350 5,674 7,274 37,274 37,274 37,274 37,274 39,674 39,674 39,674 49,500Cumulative %: 9% 9% 11% 15% 75% 75% 75% 75% 80% 80% 80% 100%

0.00%

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Annual Cumulative

Summary of Lease ExpirationsYear Leases SF Percent Cumu. SF Cumu. %

2020 2 4,350 9% 4,350 9%

2021 0 0 0% 4,350 9%

2022 1 1,324 3% 5,674 11%

2023 1 1,600 3% 7,274 15%

2024 1 30,000 61% 37,274 75%

2025 0 0 0% 37,274 75%

2026 0 0 0% 37,274 75%

2027 0 0 0% 37,274 75%

2028 1 2,400 5% 39,674 80%

2029 0 0 0% 39,674 80%

Thereafter 0 0 0% 39,674 80%

Available 4 9,826 20% 49,500 100%

ouse


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RENT ROLL AS OF 10/1/2019


Square % of Lease Term Rental Rates Recovery

Suite Tenant Name Feet Property Begin End Begin Monthly Annually PSF Type

2,400 4.85% Jun-2018 May-2028 Current $3,300 $39,600 $16.50 - Jun-2023 $3,630 $43,560 $18.15 10.00%

Notes: Renewal Option: Two 5 year renewal options @ $19.97 /sf/yr and $21.96 /sf/yr. Analysis takes one option.

3,150 6.36% Feb-2015 Aug-2020 Current $4,200 $50,400 $16.00 -

1,600 3.23% Oct-2013 Sep-2023 Current $2,467 $29,600 $18.50 -

1,324 2.67% Mar-2007 Feb-2022 Current $1,600 $19,200 $14.50 -

1,203 2.43% $1,604 $19,248 $16.00 -

1,200 2.42% May-2010 May-2020 Current $1,815 $21,780 $18.15 -

Notes: Percentage Rent: % Rent @ 5% of gross sales over a natural breakpoint.

3,523 7.12% $4,697 $56,368 $16.00 -

30,000 60.61% Sep-2013 Jan-2024 Current $21,875 $262,500 $8.75 -

Notes: Renewal Option: Four 5 year renewal options @ annual rates of $288,750, $317,625, $349,387.50, and $384,326.25. Analysis takes two options.

Expense Cap: Fixed CAM growing at 4% excluding INS and RET with an estimated CY2020 basis of $1.1388 PSF.

2,550 5.15% $3,400 $40,800 $16.00 -

2,550 5.15% $3,400 $40,800 $16.00 -

General Notes: Kohl's is not a part of this transaction and are included herein for the purposes of a CAM contribution.

TOTALS / AVERAGES 49,500 TOTALS (In-Place Rent) $35,257 $423,080 $10.66TOTALS (Available Rent) $13,101 $157,216 $16.00

OCCUPIED SqFt 39,674 80.1% TOTALS (Gross Potential Rent) $48,358 $580,296 $11.72VACANT SqFt 9,826 19.9%

TOTAL SqFt 49,500 100.0%

WEIGHTED-AVERAGE LEASE TERM REMAINING: 3.89 YearsWEIGHTED-AVERAGE LEASE TERM LAPSED: 6.18 YearsWEIGHTED-AVERAGE LEASE TERM FROM INCEPTION: 10.06 Years

2-100-13 Available NNN+MGT (Market-BL Bldg) +F

Co-tenancy: A co-tenancy violation occurs if Kohl's fails to continuously be open for business in accordance with tenant's normal business operations and a substitute tenant with a similar use does not commence operations within 180 days thereafter, except where any closing is due to restoration following a casualty or taking or for the purpose of remodeling (the "Threshold Requirement"), and such requirement is not met for more than 9 consecutive months. If a violation occurs, tenant may either (i) reduce minimum rent by 50% commencing with the 10th month and continuing until a

x100-99 Kohl's Net Partial CAM Only (Kohl's)


1-100-08 Available NNN+MGT (Market-Non-BL Bldg)

2-100-10 Big Lots Fixed CAM, Net IT (BL) +F


1-100-07 Jack & Jill Donuts NNN+15%AF+MGT

1-100-04 Opi Nails NNN+15%AF+MGT

1-100-05 Edward Jones NNN+10%AF

Pizza Hut NNN+15%AF+MGT1-100-01

1-100-03 Toes & TS and Design Warehouse

NNN+15%AF+MGT

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RENT ROLL AS OF 10/1/2019






3,150 6.36% Feb-2015 Aug-2020 Current $4,200 $50,400 $16.00 -

1,600 3.23% Oct-2013 Sep-2023 Current $2,467 $29,600 $18.50 -

1,324 2.67% Mar-2007 Feb-2022 Current $1,600 $19,200 $14.50 -

1,203 2.43% $1,604 $19,248 $16.00 -

1,200 2.42% May-2010 May-2020 Current $1,815 $21,780 $18.15 -


3,523 7.12% $4,697 $56,368 $16.00 -

30,000 60.61% Sep-2013 Jan-2024 Current $21,875 $262,500 $8.75 -



2,550 5.15% $3,400 $40,800 $16.00 -

2,550 5.15% $3,400 $40,800 $16.00 -




TOTAL SqFt 49,500 100.0%














NNN+15%AF+MGT





3,150 6.36% Feb-2015 Aug-2020 Current $4,200 $50,400 $16.00 -

1,600 3.23% Oct-2013 Sep-2023 Current $2,467 $29,600 $18.50 -

1,324 2.67% Mar-2007 Feb-2022 Current $1,600 $19,200 $14.50 -

1,203 2.43% $1,604 $19,248 $16.00 -

1,200 2.42% May-2010 May-2020 Current $1,815 $21,780 $18.15 -


3,523 7.12% $4,697 $56,368 $16.00 -

30,000 60.61% Sep-2013 Jan-2024 Current $21,875 $262,500 $8.75 -



2,550 5.15% $3,400 $40,800 $16.00 -

2,550 5.15% $3,400 $40,800 $16.00 -




TOTAL SqFt 49,500 100.0%














NNN+15%AF+MGT

WEIGHTED-AVERAGE LEASE TERM REMAINING: 3.89 YEARSWEIGHTED-AVERAGE LEASE TERM LAPSED: 6.18 YEARSWEIGHTED AVERAGE LEASE TERM FROM INCEPTION: 10.06 YEARS

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LEASE PROVISIONS

Margin TaxTenant Suite Renewal Options Percentage Rent Clause Co-Tenancy Clause Expense Caps ReimbursementPizza Hut 1-100-01 Two 5 year renewal options @ $19.97 /sf/yr

and $21.96 /sf/yr. Analysis takes one option.Net

Toes & TS and Design Warehouse

1-100-03 Net

Opi Nails 1-100-04 Net

Edward Jones 1-100-05 Silent

Jack & Jill Donuts 1-100-07 % Rent @ 5% of gross sales over a natural breakpoint.

Net

Big Lots 2-100-10 Four 5 year renewal options @ annual rates of $288,750, $317,625, $349,387.50, and $384,326.25. Analysis takes two options.

A co-tenancy violation occurs if Kohl's fails to continuously be open for business in accordance with tenant's normal business operations and a substitute tenant with a similar use does not commence operations within 180 days thereafter, except where any closing is due to restoration following a casualty or taking or for the purpose of remodeling (the "Threshold Requirement"), and such requirement is not met for more than 9 consecutive months. If a violation occurs, tenant may either (i) reduce minimum rent by 50% commencing with the 10th month and continuing until a replacement tenant is in-place, or (ii) terminate the Lease upon 90 days notice. If a violation persists for twelve months, tenant must either terminate the lease or resume full rental obligations.

Fixed CAM growing at 4% excluding INS and RET with an estimated CY2020 basis of $1.1388 PSF.

Silent


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Located on the South Plains of West Texas, Lubbock has long been known as the “Hub City.” The nickname is related to Lubbock’s accessible location on the crossroads of Interstate 27 and four major U.S. highways. Lubbock is in the central time zone and is equal distance to both coasts, allowing for ease of U.S. distribution. Within the city, you will find a well-planned transportation network with an average commute time of 16 minutes.

Lubbock is known as the birthplace of rock ’n’ roll legend Buddy Holly. The Buddy Holly Center celebrates his life and music with artifacts and mementos. Nearby is the West Texas Walk of Fame, with a statue of Holly and plaques honoring musicians from the region. The Museum of Texas Tech University houses millions of objects of art, history and paleontology, plus the Moody Planetarium.

The Lubbock area is the largest contiguous cotton growing region in the world and is heavily dependent on federal government agricultural subsidies and on irrigation water drawn from the Ogallala Aquifer. The 10 largest employers in terms of the number of employees are Texas Tech University, Covenant Health System, Lubbock Independent School District, University Medical Center, United Supermarkets, City of Lubbock, Texas Tech University Health Sciences Center, AT&T, Convergys, and Lubbock County.

Lubbock is home to Texas Tech University, which was established on February 10, 1923, as Texas Technological College. It is the leading institution of the Texas Tech University System and has the seventh-largest enrollment in the state of Texas. It is the only school in Texas to house an undergraduate institution, law school, and medical school at the same location. Altogether, the university has educated students from all 50 US states and over 100 foreign countries. Enrollment has continued to increase in recent years, and growth is on track with a plan to have 40,000 students by 2020.

Lubbock is also home to other college campuses in the city, including Lubbock Christian University, South Plains College, Wayland Baptist University, Virginia College, Kaplan College, and Sunset International Bible Institute.

SOURCE: LUBBOCK ECONOMIC DEVELOPMENT ALLIANCE, West Texas Music Hall of Fame

WHY LUBBOCK?

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POPULATION (2019)1 MILE 12,8903 MILES 74,7955 MILES 166,1907 MILES 243,464

HOUSEHOLDS (2019)1 MILE 5,0113 MILES 29,6735 MILES 65,3247 MILES 92,786

AVG HH INCOME (2019)1 MILE $92,4183 MILES $85,8415 MILES $75,6647 MILES $70,145

POPULATION GROWTH RATE (1 MILE)2010-2019 1.69%2019-2024 1.77%

TRAFFIC COUNTS (VPD)I-27 65,259INDIANA AVE 22,085

DEMOGRAPHICS

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DISCLAIMERSCBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum.

This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.

This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the “Owner”), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CBRE, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the

contents of this Memorandum in any manner.

Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.

The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.

By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.

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KOHL’S PLAZA3307 98TH STREETLUBBOCK, TX 79423

EXCLUSIVE MARKETING ADVISORS

JARED AUBREYSenior Vice President


MICHAEL AUSTRYFirst Vice President


AUSTIN DIAMONDAssociate


kohl’s plaza - loopnet

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