offering memorandum cbre capital markets christian … · 2018. 7. 25. · cbre, inc. operates...

OFFER ING MEMORANDUM

9245 S SAM HOUSTON PARKWAY | HOUSTON, TX 77075

C H R I S T I A N B R OT H E R SAU TO M OT I V E

C B R E C A P I TA L M A R K E T S


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CHRIST IAN BROTHERS

JARED AUBREYSENIOR V ICE PRES IDENT+1 214 252 1031ja red .aub rey@cbre . com

M ICHAEL AUSTRYVICE PRES IDENT+1 214 252 1115michae l .aus t r y@cbre . com

OFFERING SUMMARY

EXCLUSIVE MARKETING ADVISORS:

NET OPERATING INCOME $156,000

YEAR BUILT 2015

GROSS LEASABLE AREA 5,044 SF

LAND AREA .72 ACRES

LEASE TERM 15 YEARS

LEASE COMMENCEMENT AUGUST 2015

LEASE EXPIRATION SEPTEMBER 2030

REMAINING TERM 12 YEARS

LEASE TYPE NNN

ROOF & STRUCTURE TENANT

INCREASES 1.50% ANNUALLY

OPTIONS REMAINING 5 - 10 YEAR

OPTIONS TO PURCHASE YES

GUARANTOR CORPORATE

$Offering Price:$2,600,000

%Cap Rate:

6.00%

YEARS COMMENCMENT ANNUAL RENT CAP RATECURRENT AUGUST 2015 $156,000 6.00%

YEAR 6 MAY 2021 $158,340 6.09%

YEAR 7 MAY 2022 $160,715 6.18%

YEAR 8 MAY 2023 $163,126 6.27%

YEAR 9 MAY 2024 $165,573 6.37%

YEAR 10 MAY 2025 $168,056 6.46%

YEAR 11 MAY 2026 $170,577 6.56%

YEAR 12 MAY 2027 $173,136 6.66%

YEAR 13 MAY 2028 $175,733 6.76%

YEAR 14 MAY 2029 $178,369 6.86%

YEAR 15 MAY 2030 $181,044 6.96%

$156,000NET OPERATING INCOME

6.47%AVERAGE CAP RATE


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CHRIST IAN BROTHERS

INVESTMENT HIGHLIGHTS

+ Long-Term, Absolute Net Lease – Over 12 years remaining on primary term, the truly passive net lease structure calls for zero landlord responsibilities

+ Strong Corporate Guarantee – Christian Brothers Automotive has over 180 Locations in 22 States

+ Proven and Expanding Concept - In the 35 years since their first store opened in Mission Bend Texas, Christian Brothers has opened an additional 170 stores and never closed a single store, speaking not only to the strength of the brand but the ongoing fulfillment of its franchisees

+ Shadow Anchored by H-E-B in Dense Residential Area – Population over 471,000 within a 7-mile radius, ideal demographics for Christian Brothers’ consumer profile

+ Huge Traffic Counts and Excellent Highway Visibility - Traffic counts exceed 112,000 Vehicles Per Day along Sam Houston Parkway

+ Numerous National Awards and Accolades –Franchise Business Review Named Christian Brothers Automotive Best of the Best – 2018. The Franchise Business Review Top 200 ranking puts Christian Brothers Automotive into an elite group of the best franchise companies in the country. More than 3,000 companies franchise in the United States, but only those with exemplary fundamentals, great financial position and high franchisee satisfaction scores earn a spot in the ranking

+ Texas Has No State Income Tax


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CHRIST IAN BROTHERS

TENANT OVERVIEW

At Christian Brothers Automotive, our mission is simple: to create an uncommonly great experience for customers in need of auto service and repair. Since 1982, that’s exactly what our team of auto repair professionals has been doing at facilities all over the country. In that time, Christian Brothers Automotive has served countless customers and proven time and again that you really can feel comfortable and confident about your car repair.

TYPE Auto Repair Service

YEARS IN BUSINESS 36

NO. OF LOCATIONS 180+

HEADQUARTERS Katy, TX

WEBSITE www.cbac.com

What Customers Say About Christian Brothers


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CHRIST IAN BROTHERS

PROPERTY AERIAL


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CHRIST IAN BROTHERS

PROPERTY AERIAL | .5 MILE VIEW


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CHRIST IAN BROTHERS

PROPERTY AERIAL | 2 MILE VIEW


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CHRIST IAN BROTHERS

SITE DEMOGRAPHICS

7 MI

3 MI

1 MI

5 MI

POPULATION

471,464 151,978

76,610

35,210

3,395

$85,773

$77,600

$76,780

$74,603

239,696

110,833

11,990

100,000 40,000200,000 80,000300,000 120,000400,000 160,0000 0

HOUSEHOLDS

AVERAGE HOUSEHOLD INCOME

7 MI

3 MI

1 MI

5 MI

7 MI

3 MI

1 MI

5 MI

20,000 40,000 60,000 80,0000

501,153

2000

2018

2023

2010

POPULATION GROWTH (7 MILES)

356,861

430,028

471,464

125,000250,000375,000500,000 0


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CHRIST IAN BROTHERS

WHY HOUSTON?

HOUSTON’S GDP IS EXPECTED TO

DOUBLE BY 2040

Sources: Greater Houston Partnership, Perryman Group, Summer 2016

IN 2016$478.6BCURRENT GDP

OUR EMPLOYMENT

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

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20

17

3.5

3.0

2.5

2.0

1.5

160

140

120

100

80

60

40

20

0

OVERALL EMPLOYMENT IN RECOVERYRecent job revisions show that Houston underwent a mild contraction in the 2-year period of 2015 and 2016 as a result of the energy downturn.

RECESSIONS:

EMPLOYMENT:

OIL PRICE:

Sources: Bureau of Labor Statistics, EIA, March 2018.

JOBS (MILLIONS) WTI ($/bbl)

HOUSTON’S ECONOMY HAS INCREASINGLY DIVERSIFIED

Sources: Institute for Regional Forecasting, Moody’s Analytics, March 2018.

TRADE, TRANSPORTATION & UTILITIES

PROFESSIONAL & BUSINESS SERVICES

GOVERNMENT

EDUCATION & HEALTH SERVICES

LEISURE & HOSPITALITY

MANUFACTURING

CONSTRUCTION

FINANCIAL ACTIVITIES

MINING & LOGGING

INFORMATION

OTHER

ADDED

62,900 JOBS IN 2017

57,400 JOBS FORECASTED FOR 2018.

242,300 JOBS FORECASTED BY 2021.

20.8%

16%

12.5%

13.5%

10.3%

Sources: Bureau of Labor Statistics, EIA, March 2018

$1.5BIN RENEWABLE

ENERGY INVESTMENT SINCE 2014

26%OF THE NATIONSOIL & GAS JOBS

106,000+EMPLOYEES

54.2MPASSENGERS IN 2017

$4.5B LOCAL ECONOMICIMPACT

4.7% BARRELS/DAY

OF TEXAS GULF COAST REFINING CAPACITY

RANKED 1ST

IN FOREIGN TONNAGE, IMPORTS, EXPORT TONNAGE, & BREAKBULK AMONG US PORTS

OUR ECONOMYPORT OF HOUSTON

LARGEST TEXAS PORT

HANDLING 68% OF US GULF COAST CONTAINER TRAFFIC

LARGEST GULF COAST CONTAINER PORT

ENERGY SECTOR

4,800ENERGY RELATED

ESTABLISHMENTS LOCATED WITHIN THE HOUSTON MSA

TEXAS MEDICAL CENTER

$3BIN CONSTRUCTION

PROJECTS UNDERWAY

THE LARGEST MEDICAL CENTER IN THE WORLD

10MPATIENT VISITS

PER YEAR

HOUSTON AIRPORT SYSTEM

8TH

LARGESTBUSINESS DISTRICT

IN THE US

Source: The Texas Medical Center, July 2017.Source: Greater Houston Partnership, July 2017.Source: Greater Houston Partnership, December 2017.

293TOTAL NON-STOP

DESTINATIONS

Sources: Greater Houston Partnership, HAS, March 2018.

AEROSPACE/AVIATION

MAJOR EMPLOYERS INCLUDE: BOEING, LOCKHEED MARTIN, BROWN & ROOT AND JOHNSON ENGINEERING

100+ COMPANIES

Source: Greater Houston Partnership, July 2017.

LICENSED COMMERCIAL SPACEPORTS

ONE OF THE NATION’S

FOUR HOUSTONREGION SEAPORTS

HOUSTON, TEXAS CITY, FREEPORT, GALVESTON

194.3 MILLION METRIC TONS

IN TRADE

6 DOMESTIC & 20 INTERNATIONAL CARRIERS

GEORGE BUSH INTERCONTINENTAL (IAH) AIRPORT

5 DOMESTIC & 1 INTERNATIONAL CARRIERS

WILLIAM P. HOBBY AIRPORT


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CHRIST IAN BROTHERS

WHY HOUSTON?

OUR PEOPLECOST OF LIVING INDEX

NEW YORK

SAN FRANCISCO

BOSTON

SEATTLE

SAN DIEGO

LOS ANGELES

PHILADELPHIA

CHICAGO

DALLAS

HOUSTON

ATLANTA

TAMPA

PHOENIX

ST. LOUIS

-20 -0 20 40 60 80 100 120

Sources: Greater Houston Partnership, Council for Community and Economic Research (C2ER), ESRI, July 2017.AVG. HOUSEHOLD INCOME COST OF LIVING

POPULATION TRENDS & DEMOGRAPHICSHOUSEHOLD INCOME AND COST OF LIV-ING % BELOW/ABOVE U.S. AVERAGE

37.2% Anglo

36% Hispanic

17.3% Black

8% Asian

1.5% Other

DIVERSITYHOUSTON LEADS THE NATIONAL ETHNIC MAKE UP 6.8M

RESIDENTS

94,417

HOUSTON HAD THE SECOND LARGEST POPULATION GAIN OF

ANY US METRO AREA IN 2017.

RESIDENTS ADDED FROM 2016 - 2017

Source: U.S. Census Bureau, March 2018.

HOUSTONCOST OF LIVING

WHILE THE AVERAGE INCOME IS ABOVE

IS BELOW THENATIONAL

AVERAGE

ONE IN FOURHOUSTONIANS ARE FOREIGN BORN

ETH

NIC

ITY

THE HOUSTON REGION HAS NO RACIAL OR ETHNIC MAJORITY.

Source: ESRI, July 2017.

HOUSING MARKET

Source: Houston Association of Realtors, March 2018.

16,539SINGLE FAMILY HOME SALESIN 2018 YTD

3.4 MONTHSHOUSING SUPPLY

$292,756AVERAGE HOME PRICE

GLOBAL PRESENCE

19 FOREIGNBANKS 1000+

FOREIGN-OWNED FIRMS

145LANGUAGES SPOKEN

91FOREIGNCONSULATES

Source: Greater Houston Partnership, March 2018

HOUSTON, TX


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CHRIST IAN BROTHERS

WHY HOUSTON?

OUR QUALITY OF LIFE

53,000 ACRESOF PARK SPACE

128 MILESOF BIKE TRAIL

#1 IN PARK ACREAGE AMONG

LARGE U.S. CITIES

EDUCATION

PARKS & RECREATION

COLLEGES, UNIVERSITIES & TECHNICAL SCHOOLS

Source: Greater Houston Partnership, May 2017.

Source: Greater Houston Partnership, May 2017.

8,203RESTAURANTS

643BARS

70C U I S I N E S

Sources: Greater Houston Partnership, May 2017.

CULINARY CAPITAL OF TEXAS

50

SPORTSTEXANS • DYNAMO • ASTROS • ROCKETS

ARTS & CULTURE

HOUSTON LIVESTOCK SHOW AND RODEO

Source: Houston Livestock Show and Rodeo, April 2017.

ATTRACTING OVER

2.6 MILLION VISITORS IN 2017.

IT IS ONE OF THE BIGGEST RODEOS IN THE COUNTRY$480M

ANNUAL AGGREGATE GROSS SALES INCREASED BY

FOUR MAJOR PERFORMING ARTS

COMPANIES IN ALL

DRAMA, BALLET, OPERA AND ORCHESTRA

500+ INSTITUTIONSFOR ART, SCIENCE AND HISTORY

437,00035% OF HOUSTON

POPULATION HAS BACHELOR’S DEGREE

OR HIGHER

STUDENTS

100

95

90

85

80

75

OCCUPANCY (%)

RETAIL MARKET

RETAIL SALES

$84BYTD Q3 2017

Source: Texas Comptroller, March 2018.

Q1 MARKET TRENDS

SALES TAX REVENUE

Spending in the urban core is stronger than in the suburban counties.

HOUSTON HAS A STRONG

CONSUMER BASE

$25.55 PSFWEIGHTED AVG ASKING RATE

Despite an active development pipeline, the suburman submarkets have seen the largest rate increases.

RETAIL OCCUPANCY

RETAIL DEVELOPMENT

98%

94%

90.3% 15 YEAR

AVERAGE

903,400 SFDELIVERED IN Q1 2018

Source: CBRE Research Q1 2018.

CLASS A OCCUPANCY

OCCUPANCY

OPEN FORBUSINESS

OCCUPIED

78.7%

TOTALINVENTORY 299,533,015 SF

Q1

-20

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2011

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2015

2016

2017

2018 Y

TD


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CHRIST IAN BROTHERS

CBRE, 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 Af-filiates, 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 success-ful 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 man-ner 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 own-er 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, mar-ket 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 qual-ified 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, Affil-iates 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 Mem-orandum 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 discus-sions 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 obli-gation 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.

DISCLAIMERS


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CHRIST IAN BROTHERS

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 subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can as-sist 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 repre-sent the buyer, usually through a written buyer representation agreement. A buy-er’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 con-sent of each party to the transaction to act as an intermediary.

Approved by the Texas Real Estate Commission for Voluntary UseTexas law requires all real estate licensees to give the following information about brokerage services to prospective

buyers, tenants, sellers and landlords.

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 sub-mitted 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 par-ties 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 in-structions 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.

Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records.

INFORMATION ON BROKERAGE SERVICES

C H R I S T I A N B R OT H E R SAU TO M OT I V E

EXCLUSIVE MARKETING ADVISORS

OFFER ING MEMORANDUM

C B R E C A P I TA L M A R K E T SJARED AUBREYSENIOR V ICE PRES IDENT+1 214 252 1031JARED.AUBREY@CBRE .COM

M ICHAEL AUSTRYVICE PRES IDENT+1 214 252 1115MICHAEL .AUSTRY@CBRE .COM


offering memorandum cbre capital markets christian … · 2018. 7. 25. · cbre, inc. operates...

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