powerpoint presentation...1.5 million residents, san antonio is the 4. th. fastest growing city in...
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126 W RECTOR DRIVE, SAN ANTONIO, TX 78216
$6,813,0004th Fastest Growing
City in US
LISTED IN PARTNERSHIP TEXAS REAL ESTATE BROKER
EDGE REALTY PARTNERS - TREC#594592
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PropertyVideo
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ADJACENT TOSAN ANTONIO’S PREMIER LUXURY MALL
WHY RECTOR PLAZA?
Achieve attractive returns now and in the future in a growing major market, in a luxury retail zone, with established tenants at below market rents.
Lucrative current cap rate.
Immediate upside through lease-up of the existing vacant space.
Long-term upside from under-market rents.
Located in one of the most exciting cities in America, synergistically next to a thriving luxury mall.
Successful local and regional tenants with established tenancy.55
Rector Plaza at North Star is a net-leased neighborhood strip center along San
Antonio’s Northwest 410 Loop. The property was constructed in 2001 and is
over 91% occupied.
Many tenants have occupied the center for over a decade and continue to
renew their tenancy at Rector Plaza because of its neighborhood appeal and
proximity to both the North Star Mall and the Northwest 410 Loop.
“Destination-Tenants” such as Joseph’s, North Star Barber, and the Dance
Center of San Antonio are local institutions which draw customers from all over
northern San Antonio.
ABOUT THEPROPERTY
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$6,813,000 $450,5466.61% Cap Rate
(with existing 9% vacancy)
33,800 SF$202/SF
100,624 Lot SF$68/Lot SF
(2.31 acres)
126 W Rector Dr.San Antonio Texas 78216
Parcel Number12025-000-0040
COUNTY: Bexar
HIGHLIGHTS
Loop 410, with over 262,900 cars per day, is among San Antonio’s most important highways. Rector Plaza is “Inside the Loop”.
The North Star Mall is San Antonio’s premier luxury shopping destination (featuring Apple, Saks Fifth Avenue, and Macy’s).
With over 1.5 million residents, San Antonio is the 4th fastest growing city in the United States
Time magazine reported that San Antonio and its suburbs are the second highest area for “Millennial” population growth in the country.
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STRONG TRAFFIC COUNTS PREMIER LOCATION POWERFUL SYNERGY
GROWING POPULATIONA MILLENIAL FUTURE
Over 57,000 cars per day on the two nearby North/South corridors: San Pedro Avenue (39,340 cars per day) and McCollough Avenue (18,133 cars per day),
Located in North San Antonio’s Premier Retail District
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SurroundingRetail
Joseph’sInterior
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PropertyPhotos
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Josephs Men’s Store
Josephs is a local family-owned men’s clothing institution that has operated in San Antonio for over 60 years. Josephs is branded as the premier men’s clothing destination of San Antonio and carries a variety of clothing brands such as Peter Millar, Hickey Freeman, Hugo Boss, and Ralph Lauren. Josephs also has full-service tailoring and made-to-measure options.
Slackers
Featuring 12 large format flat screen TVs, one of the largest selections of Texas craft IPA beers in San Antonio, and a full-size pool table, Slackers is the premier playground for adults. Slackers initially opened as a sports bar, but quickly transitioned into an arcade and full-service gaming bar. Their North Star location features a second-floor arcade with classic games such as Tekken Tag, Galaga, Pac-Man, and Mortal Kombat.
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Dance Center of San Antonio
The Dance Center of San Antonio (“DCSA”) is the premier ballet training center in the city. DCSA dancers put on annual shows for the city and have competed in international competitions such as the Vaganova Prix and the Prix de Lausanne. In addition to regular classes, DCSA offers seasonal training camps that draw students from all over San Antonio.
University Health System - CareLink
CareLink is a financial assistance program operated by the University Health System of Bexar County. San Antonio or Bexar County residents who do not have private or public health insurance are eligible to enroll in CareLink. University Health System is a nationally recognized teaching hospital and network of outpatient healthcare centers, owned by the people of Bexar County. In partnership with UT Health San Antonio, it is consistently recognized as a leader in advanced treatment options, new technologies and clinical research.
Tenant
Website: www.universityhealthsystem.comOwnership: Government Entity Locations: 35
Website: www.dancecenterofsanantonio.comOwnership: PrivateLocations: 1
Website: www.slackersbars.comOwnership: Private Locations: 3
Website: www.josephsmenstore.comOwnership: PrivateLocations: 1
Profiles P A G E 1 0 F 2
A local beautification destination. Upper Hands Nail Salon providesstandard services such as manicures and pedicures while also actingas a social gathering place.
Pho Thien An is a family-owned Vietnamese and Chinese restaurantthat has been serving customers since 2009. Rated one of the top tenVietnamese restaurants in San Antonio, their Pho Dac Biet andSummer Rolls are late-night favorites.
AtWork is a national temp-to-hire and direct hire services company.AtWork Personnel Services is a branch of the AtWork networkdedicated to administrative and light industrial recruitment.
Pho Thien An
Upper Hands Nail Salon BRJS LLC dba AtWork Personnel Services
C O N T I N U E D
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North Star Barber ShopEstablished in 1996, North Star Barber Shop is a full-service barber shop thatoffers everything from wet straight razor shaves to shoe-shines. North Star is ratedone of the top ten barber shops in San Antonio and is known for its high-qualityfades and phenomenal service.
The Party Staff is a national hospitality staffing company that providesstaffing solutions for corporate, residential, and sporting events.
The Party Staff
TenantProfiles
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Parcel APN Lot Size
126 W Rector Dr. 12025-000-0040 2.31 AC
Land Area
Rector Plaza consists of 1 parcel totaling approximately 2.31 acres or 100,624 SF of land area.
Building Area
1 retail building totals approximately 33,800 SF of net rentable area.
Parking
Rector Plaza provides 139 parking spaces, approximately 4.11 spaces per 1,000 SF.
Traffic CountsW. Rector Drive…………………….13,026 CPDSan Pedro Avenue…………….39,340 CPD McCollough Avenue…….…18,133 CPD
Built
Construction was completed in 2001.
PropertyInformation
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RentRoll P A G E 1 O F 2Lease Term Rental Rates
Suite Tenant Name GLA Sqft % of Property Start Begin End Begin Monthly PSF Annually PSF Recovery Type
100 The Party Staff, Inc. 866 2.56% 9/24/2019 9/24/2019 9/30/2020 Current $1,327.15 $1.53 $15,926 $18.39 NNN+Pro Rata CAM
10/1/2020 9/30/2021 Future $1,363.23 $1.57 $16,359 $18.89
10/1/2021 9/30/2022 Future $1,399.31 $1.62 $16,792 $19.39
10/1/2022 9/30/2023 Future $1,435.40 $1.66 $17,225 $19.89
10/1/2023 9/30/2024 Option 1 $1,471.48 $1.70 $17,658 $20.39 1.025135851
10/1/2024 9/30/2025 $1,507.56 $1.74 $18,091 $20.89 1.024519531
10/1/2025 9/30/2026 $1,543.65 $1.78 $18,524 $21.39 1.023939346
10/1/2026 9/30/2027 $1,579.73 $1.82 $18,957 $21.89 1.023373174
10/1/2028 9/30/2028 $1,615.81 $1.87 $19,390 $22.39 1.022839346
120 Dance Center 9084 26.88% 7/6/2017 11/1/2019 10/31/2020 Current $7,570.00 $0.83 $90,840 $10.00 NNN+Pro Rata CAM+15% mng. fee
11/1/2020 10/31/2021 Future $7,759.25 $0.85 $93,111 $10.25
11/1/2021 10/31/2022 Future $7,948.50 $0.88 $95,382 $10.50
11/1/2022 10/31/2023 Future $8,137.75 $0.90 $97,653 $10.75
11/1/2023 10/31/2024 Future $8,327.00 $0.92 $99,924 $11.00
11/1/2024 10/31/2025 Future $8,516.25 $0.94 $102,195 $11.25
136 Rector Bar, LLC. 3487 10.32% 2/1/2017 2/1/2019 1/31/2020 Current $5,283.58 $1.52 $63,403 $18.18 NNN+Pro Rata CAM+15% mng. fee
2/1/2020 1/31/2021 Future $5,422.63 $1.56 $65,072 $18.66
2/1/2021 2/1/2022 Future $5,561.67 $1.59 $66,740 $19.14
104 BRJS, LLC dba AtWork Personnel Services 1000 2.96% 3/1/2020 3/1/2020 2/28/2021 Current $1,666.67 $1.67 $20,000 $20.00 NNN+Pro Rata CAM
3/1/2021 2/28/2022 Future $1,750.00 $1.75 $21,000 $21.00
3/1/2022 2/28/2023 Future $1,833.33 $1.83 $22,000 $22.00
3/1/2023 2/29/2024 Future $1,916.67 $1.92 $23,000 $23.00
RentRoll P A G E 2 O F 2
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Lease Term Rental Rates
Suite Tenant Name GLA Sqft % of Property Start Begin End Begin Monthly PSF Annually PSF Recovery Type
108 Pho Thien An 1817 5.38% 2/1/2006 2/1/2019 1/31/2020 Current $3,255.46 $3.26 $39,066 $21.50 NNN+Pro Rata CAM+15% mg. fee
2/1/2020 1/31/2021 Future $3,331.17 $3.33 $39,974 $22.00
2/1/2021 1/31/2022 Future $3,406.88 $3.41 $40,883 $22.50
2/1/2022 1/31/2023 Future $3,482.58 $3.48 $41,791 $23.00
2/1/2023 1/31/2028 Option 1 FMV FMV FMV FMV
112 Hien Luu dba Upper Hands Nail Salon 903 2.67% 8/1/2009 8/1/2019 7/31/2020 Current $1,580.25 $1.75 $18,963 $21.00 NNN+Pro Rata CAM+5% mng. fee
8/1/2020 7/31/2021 Future $1,617.88 $1.79 $19,415 $21.50
8/1/2021 7/31/2022 Future $1,655.50 $1.83 $19,866 $22.00
116 Bexar County Hospital Distirct dba University Health System 2128 6.30% 5/1/2013 5/1/2019 4/30/2020 Current $3,014.67 $1.42 $36,176 $17.00 NNN+Pro Rata CAM+5% mng. fee
5/1/2020 4/30/2021 Future $3,105.11 $1.46 $37,261 $17.51
5/1/2021 4/30/2022 Future $3,198.26 $1.50 $38,379 $18.04
124/132 Josephs Mens Store 10500 31.07% 10/1/2004 2/1/2019 1/31/2025 Current $12,687.50 $1.21 $152,250 $14.50 NNN+Pro Rata CAM+15% mng. fee
2/1/2025 1/31/2030 Option 1 $13,125.00 $1.25 $157,500 $15.00
2/1/2030 1/31/2035 Option2 $13,562.50 $1.29 $162,750 $15.50
144 North Star Barber Shop 1180 3.49% 11/1/2005 3/1/2019 2/28/2024 Current $2,015.83 $1.71 $24,190 $20.50 NNN+Pro Rata CAM+15% mng. fee
3/1/2024 2/28/2029 Future $2,217.42 $1.88 $26,609 $22.55
Cash FlowProjectionsYear 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
For the Years Ending Jun-2021 Jun-2022 Jun-2023 Jun-2024 Jun-2025 Jun-2026 Jun-2027 Jun-2028 Jun-2029 Jun-2030
Rental RevenuePotential Base Rent 524,937 535,057 539,832 545,130 552,459 598,348 622,732 623,698 624,151 626,397Absorption & Turnover Vacancy -56,616 -11,230 -1,806 -8,000 -4,000 -13,626 -15,948 -5,440 -4,092 -2,000
Total Rental Revenue 468,321 523,827 538,026 537,130 548,459 584,722 606,784 618,258 620,059 624,397
Other Tenant RevenueTotal Expense Recoveries 194,151 213,800 222,786 227,023 234,828 238,330 246,351 256,880 264,378 272,465
Potential Gross Revenue 662,472 737,627 760,812 764,153 783,287 823,052 853,136 875,138 884,438 896,862
Vacancy & Credit LossVacancy Allowance 0 -22,176 -25,186 -19,257 -23,623 -27,340 -23,265 -26,790 -27,116 -29,320
Effective Gross Revenue 662,472 715,451 735,626 744,897 759,664 795,712 829,871 848,348 857,322 867,542
Operating ExpensesRepair & Maintenance 2,185 2,251 2,319 2,388 2,460 2,533 2,609 2,688 2,768 2,851Sweeping 5,137 5,292 5,450 5,614 5,782 5,956 6,134 6,318 6,508 6,703Landscaping 5,683 5,854 6,029 6,210 6,396 6,588 6,786 6,989 7,199 7,415Security Service 4,616 4,755 4,897 5,044 5,196 5,351 5,512 5,677 5,848 6,023Fire Monitoring 460 474 488 503 518 534 550 566 583 601Insurance 18,782 19,345 19,926 20,524 21,139 21,773 22,427 23,099 23,792 24,506Phone 1,881 1,937 1,995 2,055 2,117 2,180 2,245 2,313 2,382 2,454Electricity 5,779 5,952 6,131 6,315 6,504 6,700 6,901 7,108 7,321 7,540Water and Sewer 7,175 7,390 7,612 7,840 8,075 8,318 8,567 8,824 9,089 9,362Trash Disposal 11,215 11,552 11,898 12,255 12,623 13,002 13,392 13,793 14,207 14,633Property Tax 130,279 134,187 138,213 142,359 146,630 151,029 155,560 160,227 165,034 169,985Management (4%) 18,733 20,953 21,521 21,485 21,938 23,389 24,271 24,730 24,802 24,976
Total Operating Expenses 211,926 219,942 226,480 232,593 239,379 247,353 254,954 262,334 269,534 277,049
Net Operating Income 450,546 495,509 509,146 512,304 520,285 548,359 574,916 586,014 587,788 590,493
Cap Rate on Acquisition 6.61% 7.27% 7.47% 7.52% 7.64% 8.05% 8.44% 8.60% 8.63% 8.67%
Leasing CostsTenant Improvements 0 34,701 5,748 0 6,753 57,920 41,883 35,775 15,551 7,829Leasing Commissions 0 3,603 668 0 770 5,450 4,219 3,569 1,544 773Total Leasing Costs 0 38,304 6,416 0 7,523 63,370 46,102 39,344 17,095 8,602
Cash Flow Available for Distribution 450,546 457,205 502,730 512,304 512,762 484,989 528,815 546,671 570,694 581,891
LEASE ABSTRACTS
Tenant EntityThe Party Staff,
Inc.
BRJS, LLC dba AtWork
Personnel Services
Pho Thien AnHien Luu dba Upper Hands
Nail Salon
Bexar County Hospital District dba University Health System
Dance Center of San Antonio
Josephs Men’s Store
Rector Bar, LLC. dba Slackers
North Star Barber Shop
Suite Number 100 104 108 112 116 120 124/132 136 144
Square Feet 866 1,000 1,817 903 2,128 9,084 10,500 3,487 1,180
Annual Rent $15,926 $20,000 $39,066 $18,963 $36,176 $90,840 $152,250 $63,403 $24,190
Annual Rent/SF $18.39 $20.00 $21.50 $21.00 $17.00 $10.00 $14.50 $18.18 $20.50
Lease Start 9/24/2019 3/1/2020 2/1/2006 8/1/2009 5/1/2013 7/6/2017 10/1/2004 2/1/2017 11/1/2005
Lease Expiration 9/30/2024 2/29/2024 2/1/2022 7/31/2022 4/30/2022 10/31/2025 1/31/2025 2/1/2022 2/28/2029
Increases Annual, 2.6% Annual, 4.5% Annual, 2.3% Annual, 2.3% Annual, 3% Annual, 2.5% None Annual, 2.6% Five Year, 10%
Lease Type Net Net Net Net Net Net Net Net Net
Reimbursement Notes
Pro Rata CAM charges. Tenant
does not reimburse for
roof or structure.
Pro Rata CAM charges. Tenant
does not reimburse for
roof or structure.
Pro Rata CAM charges + 15%
mng. fee. Tenant does not
reimburse for roof or structure.
Pro Rata CAM charges + 5%
gross rent mng. fee. Tenant does
not reimburse for roof or structure.
Pro Rata CAM charges + 5%
mng. fee. Tenant does not
reimburse for roof or structure.
Pro Rata CAM charges + 15%
mng. fee. Tenant does not
reimburse for roof or structure.
Pro Rata CAM charges + 15%
mng. fee. Tenant does not
reimburse for roof or structure.
Pro Rata CAM charges + 15%
mng. fee. Tenant does not
reimburse for roof or structure.
Pro Rata CAM charges + 15%
mng. fee. Tenant does not
reimburse for roof or structure.
Options 1, 5-year option None 1, 5-year option None None None 2, 5-year options
None None
Guaranty Corporate N/A Personal Personal N/A Personal Corporate Personal Personal
Report Sales Yes Yes No No No No No No No
Percentage Rent No No No No No No No No No
0%
10%
20%
30%
40%
50%
60%
70%
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
% of SF
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Rector Plaza at North Star has well-staggered expiration exposure for the next six years. Likelihood of turnover for the Dance Center of San Antonio or Josephs is limited because of their local appeal and their long-term tenancy.
Upper Hands Nail Salon
LeaseTurnover Schedule
$15,926
$90,840
$63,403
$20,000
$39,066$18,963
$36,176
$152,250
$24,190
20Upper Hands
Nail Salon
Income is well distributed between large and small tenants.Exposure to the successful co-anchors, Josephs and the DanceCenter of San Antonio, is mitigated by their strong performanceand loyal repeat customer base.
Other tenants such as Pho Thien An, North Star Barber, and UpperHands Nail Salon have been in Rector Plaza for over 10 years andare mainstays of the community.
The Dance Center is a recurring, service-based anchor, and boththe Dance Center and Joseph’s cater to an upper-incomecustomer base that creates synergy and success for the othertenants. Joseph’s clients have decades of loyalty to the customer-service oriented mission of the store; this level of custom attentionand client-knowledge is a competitive advantage over online-shopping.
IncomeDiversity
PropertyPhotos
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• Located in the Texas Triangle
• 2 UNESCO World Heritage sites
• 5 US military bases
• 6 Fortune 500 company headquarters
• 31 colleges and universities
• 4th fastest growing economy in the nation over the past 12
years
• Home of The Riverwalk and The Alamo which attract 37
millions tourists annually
San Antonio is often overlooked in favor of its larger neighbors -
Austin, Dallas-Fort Worth, and Houston. As high cost of living and
tax incentives drive migration, we expect more businesses and
individuals will move to the area and call San Antonio their home.
In 2019 Realtor.com ranked San Antonio as America’s top
destination for millennials.
San Antonio
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San Antonio is a military, logistics, IT, and healthcare services hub that services southern Texas. With
over 1.5 million residents, San Antonio is the seventh-most populous city in the United States and the
second-most populous city in the Southern United States. The city traces its origins to a Spanish colonial
mission that was founded in the early 18th century and is the oldest city in Texas. This rich cultural
legacy is augmented by the city’s dramatic economic growth over the past few decades.
2024 Projected Population 12,539 117,023 340,283
2019 Population 11,993 111,370 322,626
2010 Population 11,623 105,352 303,052
Projected Growth (2019-2024) 4.6% 5.1% 5.5%
Growth (2010-2019) 3.2% 5.7% 6.5%
Average Household Income $70,400 $73,080 $80,074
Median Home Value $197,729 $163,884 $207,142
Households 5,530 46,625 135,069
1 M i l e | 3 M i l e | 5 M i l e
15 minutes to downtown
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2005
$3,200,000
$209
6.6%
1701 Fm 1960 Rd WHouston, TX
1324 Common StNew Braunfels, TX
12711 Blanco RdSan Antonio, TX
2017
$4,394,000
$649
6.1%
Year Built:
Sale Price:
Price Per SF:
Cap Rate:
2005
$3,000,000
$246
6.0%
7909 W Grand Pkwy S,Richmond, TX
19721 US Hwy 59Humble, TX
12000 Us Hwy 380Cross Roads, TX
2013
$6,100,000
$389
6.7%
1980
$8,400,000
$204
6.5%
2007
$5,065,000
$335
6.5%
ComparableSalesT E X A S S T R I P C E N T E R S
2001 Year Built$6,813,000$202 Per Foot6.61% Cap Rate
25
PropertyPhotos
881 Alma Real Drive #320, Pacific Palisades, California 90272
www.Newmontis.com
(424) 421-7373
Trevor Nelson
President
(424) 421-7371
Deal team:
NEWMONTIS
Vernon Jones
Investment Associate
(424) 421-7375
Javorn Farrell
Investment Associate
(424) 421-7372
Reid Yankowski
Investment Associate
(424) 421-7376
Real Estate Investment Banking
Dre #02090823
LISTED IN PARTNERSHIP WITH: EDGE Realty Partners, LLC. BRE#594592
Wilson Stafford - (214) 545-6933 - [email protected]
Disclaimer: This offering memorandum may contain errors, typographicalmistakes, miscalculations or incorrect estimates, calculations or projections. Wehope it doesn’t; we try to get stuff right. But just in case, we recommend youindependently verify everything and don’t make any investment decisions basedon the contents of this presentation.