valle feliz om - loopnet · 2017 estimate pop 13,567 77,497 179,083 2017 census pop 12,480 70,938...

VALLE FELIZ ADULT DAY CARE1108 E Kika De La Garza St • Mission, TX 78572

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N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap RealEstate Investment Services, Inc. ("Marcus & Millichap") and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This MarketingBrochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. Theinformation contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation,with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements,the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or thefinancial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this MarketingBrochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor hasMarcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the informationprovided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real EstateInvestment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

THE TEXAS REAL ESTATE COMMISSION (TREC) REGULATES REAL ESTATE BROKERS AND SALES AGENTS, REAL ESTATE INSPECTORS,HOME WARRANTY COMPANIES,EASEMENT AND RIGHT-OF-WAY AGENTS AND TIMESHARE INTEREST PROVIDERS. YOU CAN FIND MORE INFORMATION AND CHECK THE STATUS OF A LICENSE HOLDER ATWWW.TREC.TEXAS.GOV. YOU CAN SEND A COMPLAINT AGAINST A LICENSE HOLDER TO TREC. A COMPLAINT FORM IS AVAILABLE ON THE TREC WEBSITE. TREC ADMINISTERSTWO RECOVERY FUNDS WHICH MAY BE USED TO SATISFY A CIVIL COURT JUDGMENT AGAINST A BROKER, SALES AGENT, REAL ESTATE INSPECTOR, OR EASEMENT OR RIGHT-OF-WAY AGENT, IF CERTAIN REQUIREMENTS ARE MET. IF YOU HAVE QUESTIONS OR ISSUES ABOUT THE ACTIVITIES OF A LICENSE HOLDER, THE COMPLAINT PROCESS OR THERECOVERY FUNDS, PLEASE VISIT THE WEBSITE OR CONTACT TREC AT:

TEXAS REAL ESTATE COMMISSIONP.O. BOX 12188AUSTIN, TEXAS 78711-2188(512) 936-3000

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporations logo or nameis not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, orcommercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

VALLE FELIZ ADULT DAY CAREMission, TXACT ID Y0490295

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TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01Offering Summary

Regional Map

Local Map

Aerial Photo

MARKET COMPARABLES 02Sales Comparables

FINANCIAL ANALYSIS 03Tenant Summary

Lease Expiration Summary

Operating Statement

Notes

Pricing Detail

Acquisition Financing

MARKET OVERVIEW 04Market Analysis

Demographic Analysis

VALLE FELIZ ADULT DAY CARE

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4

INVESTMENT

OVERVIEW


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OFFERING SUMMARY

5

EXECUTIVE SUMMARY

EXPENSES

CURRENT $/SF PRO FORMA $/SF

Repairs & Maintenance $1,416 $0.25 $1,416 $0.25

Insurance $4,428 $0.78 $4,428 $0.78

Real Estate Taxes $15,934 $2.81 $15,934 $2.81

Management Fee $3,837 $0.68 $3,837 $0.68

Total Expenses $25,615 $4.52 $25,615 $4.52

VITAL DATA

CURRENT PRO FORMA

Price $650,000 CAP Rate 10.82% 10.82%

Down Payment 25% / $162,500 Net Operating Income $70,301 $70,301

Loan Amount $487,500 Net Cash Flow After Debt Service 22.22% / $36,103 22.22% / $36,103

Loan Type Proposed New Total Return 28.40% / $46,155 28.72% / $46,669

Interest Rate / Amortization 5.00% / 25 Years

Rentable SF 5,667

Price/SF $114.70

Current Occupancy 100.0%

Year Built 2008

Lot Size 0.58 acre(s)

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2017 Estimate Pop 13,567 77,497 179,083

2017 Census Pop 12,480 70,938 163,143

2017 Estimate HH 4,913 23,801 52,367

2017 Census HH 4,449 21,541 47,288

Median HH Income $36,022 $42,690 $38,763

Per Capita Income $17,961 $19,607 $17,156

Average HH Income $49,591 $63,725 $58,539

THE OFFERING

Property Valle Feliz Adult Day Care

Price $650,000

Property Address 1108 E Kika De La Garza St, Mission, TX

Assessors Parcel Number W8100-00-00B-0010-00

SITE DESCRIPTION

Year Built/Renovated 2008

Rentable Square Feet 5,667

Ownership Fee Simple

Lot Size 0.58 acre(s)

Parking 2.50/1,000 SF

Intersection/Cross Street Kika De La Garza & Business 83


OFFERING SUMMARY

� Friendly neighborhood office setting adjacent to public library

� Divisible real estate allows flexibility to acquire more tenants and lower risk

� Discounted asset allows investor one year to replace tenant in desirable space

INVESTMENT HIGHLIGHTS

The Valle Feliz Adult Day Care Office is a approximately 5,667 SF Office located in what has proven to be a great location for health service businesses between two main

thoroughfares (Bryan Rd & Conway Rd.) . Valle Feliz Adult Day Care has grown it's market share over the past 12 years in this location. The building is being offered at an

approximate 15% discount from a stabilized market value. The current situation of this building allows investor a value-add opportunity to either replace tenant or extend

current tenant to a long-term lease in one year. An investor can add $125,000 of value to the building by simply executing a 5-10 year lease. According to analytics, the

probability of leasing a space such as this one is 70% in 7-8 months.

INVESTMENT OVERVIEW

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REGIONAL MAP


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Pro

ba

bil

ity

Months To Lease 5,000 SF Office In Sub-Market

Source: CoStar Analytics

REGIONAL MAP


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LOCAL MAP


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AERIAL PHOTO


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FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS


OPERATING STATEMENT

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TENANT SUMMARY

FINANCIAL ANALYSIS


PRICING DETAIL

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MARCUS & MILLICHAP CAPITAL CORPORATION CAPABILITIES

MMCC—our fully integrated, dedicated financing arm—is committed to

providing superior capital market expertise, precisely managed execution, and

unparalleled access to capital sources providing the most competitive rates and

terms.

We leverage our prominent capital market relationships with commercial banks,

life insurance companies, CMBS, private and public debt/equity funds, Fannie

Mae, Freddie Mac and HUD to provide our clients with the greatest range of

financing options.

Our dedicated, knowledgeable experts understand the challenges of financing

and work tirelessly to resolve all potential issues to the benefit of our clients.

National platform operating

within the firm’s brokerage offices

$5.1 billion total national volume in 2016

Access to more capital sources than any other firm in the industry

Optimum financing solutions

to enhance value

Our ability to enhance

buyer pool by expanding

finance options

Our ability to enhance

seller control

• Through buyer

qualification support

• Our ability to manage buyers

finance expectations

• Ability to monitor and

manage buyer/lender

progress, insuring timely,

predictable closings

• By relying on a world class

set of debt/equity sources

and presenting a tightly

underwritten credit file

WHY MMCC?

Closed 1,651 debt and equity financings in 2016

ACQUISITION FINANCING


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MARKET

OVERVIEW

MARKET OVERVIEW

MCALLEN-EDINBURG-MISSIONOVERVIEW

The McAllen-Edinburg-Mission metro is located 250 miles south of San

Antonio near the Texas-Mexico border and is composed of Hidalgo

County. The metro’s proximity to Mexico makes trade and logistics

important drivers of the local economy. The University of Texas, Rio

Grande Valley has facilities in Edinburg, McAllen and Weslaco. The Rio

Grande River also runs through the area, providing recreational

opportunities for locals and visitors.

849K

2016POPULATION:

238K

2016HOUSEHOLDS:

28.9

2016MEDIAN AGE:

$35,400

2016 MEDIAN HOUSEHOLD INCOME:

DEMOGRAPHICS

U.S. Median:

37.7U.S. Median:

$57,2009.7%

Growth2016-2021*:

9.6%

Growth2016-2021*:

ECONOMY

METRO HIGHLIGHTS

* Forecast

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau


LOGISTICS INDUSTRYMcAllen’s location on the Texas-Mexico border has turned the area into a trade hub. As a result, several logistics companies are located here.

HEALTHCAREThe metro has a strong healthcare sector, making up roughly 32 percent of total employment.

HOMEOWNERSHIPThe relatively affordable cost of homeownership in McAllen affords nearly 70 percent of all households to own homes.

� The metro has a diverse employment base, including sectors such as healthcare, retail and trade. The

healthcare sector is a significant part of the economy as several large hospitals are located in the area,

including Rio Grande Regional Hospital, McAllen Medical Center and McAllen Heart Hospital.

� GE Aviation and Royal Technologies Corp. have major manufacturing facilities in the metro, supplying

hundreds of jobs to the area.

� South Texas College is also located within McAllen. It regularly receives grants to provide equipment

upgrades and manufacturing training to local residents. Texas A&M University is chartering a satellite

campus in McAllen in the fall of 2017, in the new master-planned community of Tres Lagos.

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PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

Source: © 2017 Experian

Created on February 2018

POPULATION 1 Miles 3 Miles 5 Miles

� 2022 Projection

Total Population 13,961 87,032 194,761

� 2017 Estimate


� 2010 Census


� 2000 Census


� Current Daytime Population

2017 Estimate 21,336 83,321 180,832

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

� 2022 Projection

Total Households 5,146 26,999 58,081

� 2017 Estimate


Average (Mean) Household Size 2.82 3.26 3.39

� 2010 Census


� 2000 Census


HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

� 2017 Estimate

$200,000 or More 1.89% 3.33% 2.82%

$150,000 - $199,999 1.40% 3.55% 2.80%

$100,000 - $149,000 5.60% 8.16% 7.64%

$75,000 - $99,999 7.09% 9.72% 9.02%

$50,000 - $74,999 20.72% 18.50% 16.96%

$35,000 - $49,999 14.58% 15.59% 14.88%

$25,000 - $34,999 11.12% 11.38% 11.87%

$15,000 - $24,999 15.38% 13.41% 14.80%

Under $15,000 19.50% 14.12% 15.29%

Average Household Income $49,591 $63,725 $58,539

Median Household Income $36,022 $42,690 $38,763

Per Capita Income $17,961 $19,607 $17,156

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

� Population By Age

2017 Estimate Total Population 13,567 77,497 179,083

Under 20 29.71% 33.66% 34.85%

20 to 34 Years 17.72% 19.23% 20.04%

35 to 39 Years 5.53% 6.30% 6.51%

40 to 49 Years 10.82% 12.46% 12.47%

50 to 64 Years 15.51% 14.15% 13.76%

Age 65+ 20.73% 14.19% 12.37%

Median Age 37.33 32.60 31.08

� Population 25+ by Education Level

2017 Estimate Population Age 25+ 8,700 45,878 103,371

Elementary (0-8) 14.96% 13.80% 17.07%

Some High School (9-11) 11.34% 12.50% 14.08%

High School Graduate (12) 26.66% 23.66% 22.42%

Some College (13-15) 19.43% 17.74% 17.37%

Associate Degree Only 4.01% 5.69% 5.42%

Bachelors Degree Only 14.48% 16.26% 14.37%

Graduate Degree 5.92% 6.66% 5.30%

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PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS


Created on February 2018

POPULATION BY

TRANSPORTATION TO WORK1 Miles 3 Miles 5 Miles

� 2017 Estimate Total Population

Bicycle 0.00% 0.25% 0.17%

Bus or Trolley Bus 0.27% 0.19% 0.37%

Carpooled 14.48% 12.50% 12.99%

Drove Alone 73.53% 76.56% 75.70%

Ferryboat 0.00% 0.00% 0.00%

Motorcycle 0.12% 0.10% 0.18%

Other Means 6.50% 5.67% 5.45%

Railroad 0.00% 0.00% 0.00%

Streetcar or Trolley Car 0.00% 0.00% 0.00%

Subway or Elevated 0.00% 0.00% 0.00%

Taxicab 0.00% 0.03% 0.01%

Walked 1.47% 0.86% 1.07%

Worked at Home 3.62% 3.83% 4.06%

POPULATION BY TRAVEL TIME TO

WORK1 Miles 3 Miles 5 Miles

� 2017 Estimate Total Population

Under 15 Minutes 31.45% 30.31% 29.72%

15 - 29 Minutes 44.42% 44.94% 45.59%

30 - 59 Minutes 15.97% 14.99% 16.40%

60 - 89 Minutes 1.62% 2.39% 1.87%

90 or More Minutes 1.21% 2.34% 2.03%

Worked at Home 3.62% 3.83% 4.06%

Average Travel Time in Minutes 21 23 22

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Income

In 2017, the median household income for your selected geography is$36,022, compare this to the US average which is currently $56,286.The median household income for your area has changed by 45.31%since 2000. It is estimated that the median household income in yourarea will be $41,528 five years from now, which represents a changeof 15.29% from the current year.

The current year per capita income in your area is $17,961, comparethis to the US average, which is $30,982. The current year averagehousehold income in your area is $49,591, compare this to the USaverage which is $81,217.

Population

In 2017, the population in your selected geography is 13,567. Thepopulation has changed by 18.39% since 2000. It is estimated thatthe population in your area will be 13,961.00 five years from now,which represents a change of 2.90% from the current year. Thecurrent population is 47.19% male and 52.81% female. The medianage of the population in your area is 37.33, compare this to the USaverage which is 37.83. The population density in your area is4,324.60 people per square mile.

Households

There are currently 4,913 households in your selected geography. Thenumber of households has changed by 26.27% since 2000. It isestimated that the number of households in your area will be 5,146five years from now, which represents a change of 4.74% from thecurrent year. The average household size in your area is 2.82 persons.

Employment

In 2017, there are 6,659 employees in your selected area, this is alsoknown as the daytime population. The 2000 Census revealed that54.87% of employees are employed in white-collar occupations inthis geography, and 44.38% are employed in blue-collar occupations.In 2017, unemployment in this area is 4.45%. In 2000, the averagetime traveled to work was 21.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:87.02% White, 0.85% Black, 0.05% Native American and 0.41%Asian/Pacific Islander. Compare these to US averages which are:70.42% White, 12.85% Black, 0.19% Native American and 5.53%Asian/Pacific Islander. People of Hispanic origin are countedindependently of race.

People of Hispanic origin make up 86.23% of the current yearpopulation in your selected area. Compare this to the US average of17.88%.

PROPERTY NAME

MARKETING TEAM


Housing

The median housing value in your area was $91,340 in 2017, comparethis to the US average of $193,953. In 2000, there were 2,527 owneroccupied housing units in your area and there were 1,364 renteroccupied housing units in your area. The median rent at the time was$310.


DEMOGRAPHICS

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DEMOGRAPHICS

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INFORMATION ABOUT BROKERAGE SERVICESTexas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

TYPES OF REAL ESTATE LICENSE HOLDERS:• A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker.• A SALES AGENTmust be sponsored by a broker and works with clients on behalf of the broker.

A BROKER’S MINIMUMDUTIES REQUIRED BY LAW (A client is the person or party that the broker represents):• Put the interests of the client above all others, including the broker’s own interests;• Inform the client of any material information about the property or transaction received by the broker;• Answer the client’s questions and present any offer to or counter-offer from the client; and• Treat all parties to a real estate transaction honestly and fairly.

A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:

AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a written listing to sell or propertymanagement agreement. An owner's agent must perform the broker’s minimum duties above and must inform the owner of any material information about the property or transaction knownby the agent, including information disclosed to the agent or subagent by the buyer or buyer’s agent.

AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer's agentmust perform the broker’s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosedto the agent by the seller or seller’s agent.

AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The writtenagreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligations as an intermediary. A broker who acts as an intermediary:

• Must treat all parties to the transaction impartially and fairly;• May, with the parties' written consent, appoint a different license holder associated with the broker to each party (owner and buyer) to communicate with, provide opinions and advice to,

and carry out the instructions of each party to the transaction.• Must not, unless specifically authorized in writing to do so by the party, disclose:

� that the owner will accept a price less than the written asking price;� that the buyer/tenant will pay a price greater than the price submitted in a written offer; and� any confidential information or any other information that a party specifically instructs the broker in writing not to disclose, unless required to do so by law.

AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not representthe buyer and must place the interests of the owner first.

TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH:• The broker’s duties and responsibilities to you, and your obligations under the representation agreement.• Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.

LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker’s services. Pleaseacknowledge receipt of this notice below and retain a copy for your records.

Information available at www.trec.texas.govRegulated by the Texas Real Estate Commission

IABS 1-0

11-2-2015

Licensed Broker /Broker Firm Name or Primary Assumed Business Name License No. Email Phone

Designated Broker of Firm License No. Email Phone

Licensed Supervisor of Sales Agent/Associate License No. Email Phone

Sales Agent/Associate’s Name License No. Email Phone

Buyer/Tenant/Seller/Landlord Initials Date

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valle feliz om - loopnet · 2017 estimate pop 13,567 77,497 179,083 2017 census pop 12,480 70,938...

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