triple net h-e-b grocery company gas station gas pad - port arthur, tx.pdf · this information has...

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Triple Net H-E-B Grocery Company Gas StationGround Leased - Pad Site to H-E-B Grocery

25% Bumps in the Options4800 Hwy 365 (Intersection of Hwy 347), Port Arthur, TX 77642

Property Summary:The H-E-B ground leased gas station is a pad site to H-E-B Grocery (which is a former Albertson’s), located on a busy intersection (traffic counts are for the 2 highways are 34,000+/-). This gas station consists of 4 islands & 16 gas pumps on .75 acre. The former C-store was removed by H-E-B. Other nearby retail includes Central Mall, a regional complex, with Bealls, Sears, Target, JC Penney, Bed, Bath & Beyond, Dillards and numerous other national chain stores. There is also a Dollar General and Family Dollar within a mile. Restaurants within a one mile radius include Popeye’s, Wendy’s, Papa John’s, Pizza Hut and Grand Buffet. The area has been under significant development in the past year with the addition of Super Wal-Mart, Lowe’s and Office Depot. Current development includes multiple restaurants, hotels and the merger of two local hospitals into a new 30 acre medical complex. * Important Note: The shopping center land (including the subject property) was originally owned by Texaco Refining and Marketing, Inc. (Texaco), which operated a gas station and caused certain soil contamination to be remediated under the Voluntary Cleanup Program of Texas. This resulted in the Texas National Resources Conservation Commission (TNRCC) issuing a certificate of compliance releasing future owners of the property from any liability to TNRCC related to Hazardous Materials, so long as the property is used for commercial use. The certificate was recorded on 2/24/98, In 1999 Albertson’s entered into a ground lease to build a gas station pad (subject property) and performed soil tests, engineering studies, environmental tests and audits showing the leased premises to be free and clear of all Hazardous Materials.

Price and Cap: We offer this property at $583,594 which is a 8.0% cap rate on NOI of $46,687.50.

Tenant: H. E. Butt Grocery Company (Privately Owned)H-E-B began 100 years ago with one tiny family shop owned by Charles & Florence Butt in Kerrville, TX. Today H-E-B serves families all over Texas and Mexico with over 300 stores and 60,000 employees. H-E-B's commitment to excellence has made it one of the nations largest independently owned food retailers. Yet H-E-B's success has not changed its commitment to giving the customer exceptional service, low prices and friendly shopping. The youngest son, Howard E. took over the family business in 1919 and in 1971 Charles, the the youngest son of Howard E. Butt, became president of the H.E. Butt Grocery Company. Today, Charles Butt is chairman and CEO of H-E-B, having grown the business from sales of $250 million in 1971 to $11 billion in 2003. In 2003 H-E-B ranked sixth in the nation and first in Texas in a Consumer Reports reader's survey of the nation's top conventional supermarkets. In 2006 H-E-B ranked 11th in the nation among privately held companies, based on $12.4 billion in annual sales for 2005, according to Forbes.

Lease Summary: Initial Term: 25 years - 17 years remaining (lease was assigned from Albertson’s)Annual Rent: $46,687.50 flat in base termExpiration Date: 9/30/2024 Options: 7 (5) year options with 25% increases every five years

Lease Type:This is a triple net lease. Landlord has absolutely no maintenance, repair or replacement responsibility for the building or land, such responsibility being solely that of the tenant. Tenant pays taxes directly and insures the property. Landlord has a TNRCC clearance at level 2 but no environmental insurance. However, Albertsons is primarily responsible and liable to indemnify owner of the land per the lease.

Property Summary:The H-E-B ground leased gas station is a pad site to H-E-B Grocery (which is a former Albertson’s), located on a busy intersection (traffic counts are for the 2 highways are 34,000+/-). This gas station consists of 4 islands & 16 gas pumps on .75 acre. The former C-store was removed by H-E-B. Other nearby retail includes Central Mall, a regional complex, with Bealls, Sears, Target, JC Penney, Bed, Bath & Beyond, Dillards and numerous other national chain stores. There is also a Dollar General and Family Dollar within a mile. Restaurants within a one mile radius include Popeye’s, Wendy’s, Papa John’s, Pizza Hut and Grand Buffet. The area has been under significant development in the past year with the addition of Super Wal-Mart, Lowe’s and Office Depot. Current development includes multiple restaurants, hotels and the merger of two local hospitals into a new 30 acre medical complex. * Important Note: The shopping center land (including the subject property) was originally owned by Texaco Refining and Marketing, Inc. (Texaco), which operated a gas station and caused certain soil contamination to be remediated under the Voluntary Cleanup Program of Texas. This resulted in the Texas National Resources Conservation Commission (TNRCC) issuing a certificate of compliance releasing future owners of the property from any liability to TNRCC related to Hazardous Materials, so long as the property is used for commercial use. The certificate was recorded on 2/24/98, In 1999 Albertson’s entered into a ground lease to build a gas station pad (subject property) and performed soil tests, engineering studies, environmental tests and audits showing the leased premises to be free and clear of all Hazardous Materials.

Price and Cap: We offer this property at $583,594 which is a 8.0% cap rate on NOI of $46,687.50.

Tenant: H. E. Butt Grocery Company (Privately Owned)H-E-B began 100 years ago with one tiny family shop owned by Charles & Florence Butt in Kerrville, TX. Today H-E-B serves families all over Texas and Mexico with over 300 stores and 60,000 employees. H-E-B's commitment to excellence has made it one of the nations largest independently owned food retailers. Yet H-E-B's success has not changed its commitment to giving the customer exceptional service, low prices and friendly shopping. The youngest son, Howard E. took over the family business in 1919 and in 1971 Charles, the the youngest son of Howard E. Butt, became president of the H.E. Butt Grocery Company. Today, Charles Butt is chairman and CEO of H-E-B, having grown the business from sales of $250 million in 1971 to $11 billion in 2003. In 2003 H-E-B ranked sixth in the nation and first in Texas in a Consumer Reports reader's survey of the nation's top conventional supermarkets. In 2006 H-E-B ranked 11th in the nation among privately held companies, based on $12.4 billion in annual sales for 2005, according to Forbes.

Lease Summary: Initial Term: 25 years - 17 years remaining (lease was assigned from Albertson’s)Annual Rent: $46,687.50 flat in base termExpiration Date: 9/30/2024 Options: 7 (5) year options with 25% increases every five years

Lease Type:This is a triple net lease. Landlord has absolutely no maintenance, repair or replacement responsibility for the building or land, such responsibility being solely that of the tenant. Tenant pays taxes directly and insures the property. Landlord has a TNRCC clearance at level 2 but no environmental insurance. However, Albertsons is primarily responsible and liable to indemnify owner of the land per the lease.







*Note

Gas Pad prior to re-development, see aerial on next page for current confirguration.







Subject Property

Building has been removed by H-E-B







This aerial reflects the current configuration of the gas pad







Traffic Counts







20 Minute Drive Time

110 Acres are currently available for development surrounding the H-E-B store







DEMOGRAPHIC PROFILE2000 Census, 2007 Estimates & 2012 ProjectionsCalculated using Proportional Block Groups

Oct-07

3.00 mi radius 5.00 mi radius 7.00 mi radius

2007 Estimated Population 42,105 76,947 116,1342012 Projected Population 42,527 77,238 116,2932000 Census Population 42,624 78,591 119,0051990 Census Population 40,635 72,117 109,518Historical Annual Growth 1990 to 2007 0.2% 0.4% 0.4%Projected Annual Growth 2007 to 2012 0.2% 0.1% 0.0%

2007 Est. Households 17,088 28,815 41,109 2012 Est. Households 17,308 28,872 41,019 2000 Census Households 17,133 29,384 42,188 1990 Census Households 16,016 28,149 41,458 Historical Annual Growth 1990 to 2007 0.4% 0.1% 0.0%Projected Annual Growth 2007 to 2012 0.3% 0.0% 0.0%

2007 Population 0 to 9 Years 13.1% 12.7% 13.1%2007 Population 10 to 19 Years 13.8% 13.3% 13.7%2007 Population 20 to 24 Years 6.6% 7.4% 7.5%2007 Population 25 to 44 Years 25.1% 26.7% 27.3%2007 Population 45 to 59 Years 21.0% 19.9% 19.7%2007 Population 60 to 74 Years 12.9% 12.2% 11.6%2007 Population 75 Years Plus 7.4% 7.7% 7.0%2007 Est. Median Age 37.7 37.2 36.0

2007 Male Population 47.7% 50.9% 52.2%2007 Female Population 52.3% 49.1% 47.8%Married Base (15yrs+) 33,691 62,190 93,141Never Married 20.5% 20.2% 23.0%Now Married 56.4% 52.4% 47.1%Separated, Divorced or Widowed 23.1% 27.4% 29.9%Households with Kids 39.6% 39.8% 41.2%Average Household Size 2.4 2.5 2.6

2007 Est. HH Income $200,000 or More 2.2% 2.2% 1.9%2007 Est. HH Income $150,000 to 199,999 3.5% 2.9% 2.4%2007 Est. HH Income $100,000 to 149,999 11.5% 10.6% 8.8%2007 Est. HH Income $75,000 to 99,999 13.8% 13.2% 11.3%2007 Est. HH Income $50,000 to 74,999 20.4% 20.4% 19.1%2007 Est. HH Income $35,000 to 49,999 14.2% 15.0% 14.8%2007 Est. HH Income $25,000 to 34,999 10.0% 10.8% 11.1%2007 Est. HH Income $15,000 to 24,999 10.1% 10.7% 12.3%2007 Est. HH Income $0 to 14,999 14.3% 14.3% 18.4%2007 Est. Average Household Income $56,258 $55,078 $49,848 2007 Est. Median Household Income $52,122 $50,256 $44,651 2007 Est. Per Capita Income $23,552 $21,927 $18,927

Number of Businesses 1,729 2,899 3,878Total Number of Employees 14,687 27,053 40,096

2007 Estimated Population 42,105 76,947 116,134 2007 Est. White Population 78.8% 72.6% 59.5%2007 Est. Black or African American 12.0% 16.0% 26.8%2007 Est. American Indian & Alaska Native 0.1% 0.1% 0.2%2007 Est. Asian & Pacific Islander 3.4% 3.3% 3.9%2007 Est. Two or more and Other Races 5.8% 7.9% 9.7%

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triple net h-e-b grocery company gas station gas pad - port arthur, tx.pdf · this information has...

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