absolute net lease palacios street · 2018. 9. 21. · 2 absolute net lease palacios street...

$4,514,000

7.20% CAP Rate

10-Year New Lease

Corporate Guarantee

Strong Financials

ABSOLUTE NET LEASE PALACIOS STREET

Offering Memorandum

1414 Palacios Street, El Campo, Texas

2


Offering Memorandum

• 7.2% Cap• Strong Corp Guarantee• Inflationary Resilient• Zero Management• 10-Year Net Lease• 100% Location

David B. Fisher, CCIMFuel & Convenience Center Investments

D. (832) 442-2828C. (936) 320-3737

[email protected]

License TX: 691654Activity ID: Z0860152

1450 Lake Robbins Drive, Suite 300The Woodlands, TX 77380

1414 Palacios StreetEl Campo, TX 77437

INVESTMENT SUMMARY…Location Summary

Investment Overview

FINANCIAL ANALYSIS…

Financial Summary

REGIONAL MAP…Site Map

MARKET OVERVIEW…Branded Franchise

Comparable Sales

Additional Pictures

Market Overview

Demographic Analysis

TABLE OF CONTENTS

6,600 SF| NET INTERIOR AREA |

04

05

09

12

13

14

21

24

28


4

OFFERING SUMMARY

CHARLOTTE NNN

LOCATION SUMMARY


- 4 -

28,568 APD

• 1414 Palacios Street is 50 miles southwest of Houston

• Over 28,500 vehicles travel past the site each day• There are two advertising billboards located on the

eastbound side of Highway 59 at approximately 10-mile and two-mile distances.

OFFERING SUMMARY

CHARLOTTE NNN

INVESTMENT OVERVIEW


OVERVIEWMarcus & Millichap has been retained on an exclusive basis and is pleased to present theopportunity to acquire a net leased investment where Zip In Zip Out Inc. will be the tenantunder a brand new 10-year absolute net lease. Zip In Zip Out Inc. is a company that hasover 80 years of collective experience in developing “next-generation” fuel andconvenience center investments. The subject property is located at 1414 Palacios Street, ElCampo, Texas, approximately 50 miles from the Houston metro area.

Constructed in 2018 on 2.2 acres the property was developed as a new generation 6,600square foot retail facility with Exxon branded fuel, a rest and support station for truckdrivers offering hot showers, washer/dryer facility, entertainment lounge, a Zip In Zip Outconvenience center and a 1,500 square foot Palacios Sports Bar and Grill for a combined6,600 square feet.

The expanded convenience store, Zip In Zip Out, sells dairy and other items of localdemand. The structure has 15 foot high ceilings. Palacio’s Sports Bar & Grill has an interiorconnection from the convenience center and accommodates patrons with ample diningtables/chairs, four (4) plasma high definition television monitors for sports attractions anda billiard table for alternate entertainment. There are large prep and cold storage areaswith extensive office and dry storage space.

This exceptional inflationary resilient net leased investment opportunity requires zerolandlord responsibilities and is a result of the developers many years of experience indeveloping, opening and stabilizing successful fuel and convenience center projects. Zip InZip Out Inc. is offering a sale-leaseback arrangement with an initial 10-year obligation withsix (6) 5-year options to renew and 10% rental payment increases every 5-years. The leaseis backed by strong financials from Zip In Zip Out Inc. (See page 13 for additional corporateinformation.)

- 5 -

The primary fuel canopy at 3,000 square feet, provides four (4) MPD’s with eight (8) fueling positions and designated diesel hoses in a “drive-in” fueling configuration. There are three (3) segregated truck fueling lanes under a separate 1,500 square foot canopy in a Master/Slaveconfiguration.

OFFERING SUMMARY

CHARLOTTE NNN

INVESTMENT OVERVIEW


MINI-MART

The convenience store includes a mini-mart with an off-site beer and wine sales license, thePalacios Sport’s Bar & Grill that is also owned and operated by the tenant. The restaurantoffers its patrons a spacious place to sit, relax and enjoy quality food in a clean and safeenvironment.

The building envelope is approximately 6,600± square feet and has stucco over steel frameconstruction over a concrete foundation and slab floor. The roof cover is buildupcomposition. The interior ceiling has a 15± feet elevation above slab with the top of the roofdeck being 17± feet above grade.

- 6 -

There is a 40 foot marquee sign at the northwest corner that is visible half a mileaway from both east and westbound travelers on Highway 59. Over 28,000 truckersand autos pass by the site each day as Highway 59 is the main connection betweenHouston and Laredo, Texas.

• High Profile Design, Modern Amenities, Services and Fixtures.

• Constructed with “Best-in-class” Standards, Materials and Execution.

• Ten (10) Upfront Convenience Store Parking Spaces.

• Twenty (20) Truck Stalls that Can Accommodate 18-wheelers.

• Expanded Interior Restrooms with Private Showers and Laundry Facilities.

• Drive Through Service for the Sports Bar and Grill.

OFFERING SUMMARY

CHARLOTTE NNN

INVESTMENT OVERVIEW


UNDERGROUND FUEL TANKS

The property contains four underground fuel tanks with leak monitor systems,containment basins and related safety and EPA required improvements, whichwere all installed new in 2018. The underground tank installations conform to2018 government requirements.

Four underground tanks have a combined 30,000-gallon gasoline/diesel capacity.The primary gasoline tank with a 20,000 gallon capacity, and two additionalgasoline tanks at 5,000-gallon capacities each.

A fourth underground tank for diesel is at 15,000-gallon capacity. The gasolinetanks are partitioned into three compartments providing regular, midgrade andpremium grades of gasoline. All tanks are designed with double wall, fiber-coatedmetal construction

YARD IMPROVEMENTS

The site has a concrete surface throughout including the fuel canopy areas andabove the underground tank areas. The site has 10 automobile parking spaces inaddition to two handicapped spaces.

o Trash Enclosure.o Air and Water Station.o 25-foot High Monument Sign.o Drive Through Service Lane Supporting Dickey’s BBQ Restaurant Operations That

Includes Signage and Intercoms.

- 7 -

OFFERING SUMMARY

CHARLOTTE NNN

INVESTMENT OVERVIEW


FEATURES

o Expansive merchandise display with the cashier counter centrally located toward the rear of the floor area with ample unrestricted space for customer movement from all sides.

o Spacious deli food preparation area at the northwest area of the interior.

o Dickey’s BBQ Restaurant with convenient interior tables and chairs at the southwest corner of the interior space with drive through service.

o Spacious top rated stainless steel walk-in coolers with 22 reach-in shelves serving both the convenience store and the restaurant franchise operation.

o Labor conscious gravity flow re-stock-dispensing shelves behind each cooler door.

o Separate men’s and women’s restrooms with extensive use of marble on walls and floor exemplify the owners commitment to quality in design details and construction.

o Large uncongested back-of-house prep and kitchen area for the Café and Deli.

o Large stainless steel walk-in freezer.

o Climate controlled “door ajar” alert system in walk-in cooler & freezer.

o Dry storage area and large private office.

- 8 -


9

FINANCIAL

ANALYSIS

#

PROPERTY SUMMARY

OFFERING SUMMARY

#

NOTES


10

OFFERING SUMMARY

OFFERING SUMMARY

CHARLOTTE NNN

FINANCIAL SUMMARY


- 11 -

CAP Rate Price Price/SFInitial

Cash-on-Cash

LEASE SUMMARY7.36% $4,414,000 $668.79 8.18%

7.28% $4,464,000 $676.36 7.90%

7.20% $4,514,000 $683.94 7.63% Tenant: Absolute Net Lease S Palacios

7.12% $4,564,000 $691.52 7.37% Guarantor: Corporate Guarantee

7.04% $4,614,000 $699.09 7.11% Credit Rating: Regional

Rent Commencement: At Close of Escrow

Operating Information Initial Lease Term 10 Years

NOI as of 2023 $325,008

Options:

2023 @ $357,508

2028 @ $393,259

2033 @ $432,585

2038 @ $475,844

2043 @ $523,428

Rent/SF $49.24

Gross Leasable Area 6,600 SF

Financing Lease Type: Absolute Net

New Acquisition Financing $3,159,800

Loan To Value 70.00%$49.24/SF

$4.10/SF/Month

$325,008 Annual Rent

Interest Rate 5.00% Base Rent:

Amortization Period 25 Years

Loan Constant 7.02%

Annual Debt Service Payment $221,663Rent Increases: 10.00%

Year 1 Debt Service Coverage 1.47

Year 1 Debt

Yield10.29%

Year 1 Net Cash Flow After Debt Service $103,345

OFFERING SUMMARY

CHARLOTTE NNN

REGIONAL MAP


- 12 -

STRONG LOCAL & NATIONAL BRANDING

#


o Exxon Corporation is an American multinational energy corporation. One of the successor companies of Standard Oil, it is headquartered in San Ramon, California, and active in more than 180 countries.

o Exxon was the brand name of oil and natural resources company Exxon Corporation, prior to 1972 known as Standard Oil Company of New Jersey. In 1999, Exxon Corporation merged with Mobil to form ExxonMobil. The Exxon brand is still used by ExxonMobil's downstream operations as a brand for certain gas stations, motor fuel and related products (the highest concentration of which are located in New Jersey, Pennsylvania, Texas and in the Mid-Atlantic and Southeastern states).

- 13 -

o Zip In Zip Out Corporation is a Texas Corporation formed in 2018 andbased in Houston, Texas. Founded by three brothers highly respected inthe Houston community with a combined 80+ years of Fuel & C-Storeindustry experience successfully developing and having owned andoperated over 30 fuel and convenience center properties. In 2016 theydeveloped the Zip In Zip Out "Next Generatiom" C-Store concept thataddresses the changing demands of the travelling public and localcommunities where the stores are located. The owners have retained sixZip In Zip Out branded stores within the Houston area and intend to offerfranchise opportunities moving forward. Funds from this sale-leasebackwill assist them in their direct development and franchise opportunityexpansion plans.

o The Zip In Zip Out brand has become the “Next-Generation” fuel andconvenience center standard by which other similar asset types aremeasured. Quality design, construction, and strong management willgenerate safe passive-investment returns backed by a strong balance sheetwith zero management responsibilities. The new lease will indemnifyinvestor 100% from any environmental concerns as the tenant will remain100% accountable. Note: Owners have a perfect environmental record!


COMPARABLES MAP

14

ABSOLUTE NET LEASE PALACIOS ST

(SUBJECT)

Jiffy Lube

Jiffy Lube

Stripes Convenience Store

7–Eleven and Shell Gas

and Convenience Station

Stripes

7-Eleven

Circle K

Murphy Express Ground

Lease

7-11 VALLEY RIDGE

SALES COMPARABLES

1

2

3

4

5

7

8

6

9

15

Avg. 6.22%

0.0

0.8

1.6

2.4

3.2

4.0

4.8

5.6

6.4

7.2

8.0

ABSOLUTENET LEASE

PALACIOS ST

Jiffy Lube Jiffy Lube-2 StripesConvenience

Store

7–Elevenand ShellGas and

ConvenienceStation

Stripes 7-Eleven Circle K MurphyExpressGroundLease

7-11 VALLEYRIDGE

PROPERTY NAMEABSOLUTE NET LEASE PALACIOS STREET

SALES COMPARABLES

Average Cap Rate

SALES COMPARABLES SALES COMPS AVG

16

Avg. $956.07

$0.00

$300.00

$600.00

$900.00

$1,200.00

$1,500.00

$1,800.00

$2,100.00

$2,400.00

$2,700.00

$3,000.00

ABSOLUTENET LEASE

PALACIOS ST

Jiffy Lube Jiffy Lube-2 StripesConvenience

Store

7–Elevenand ShellGas and

ConvenienceStation

Stripes 7-Eleven Circle K MurphyExpressGroundLease

7-11 VALLEYRIDGE


SALES COMPARABLES

Average Price Per Square Foot

SALES COMPARABLES SALES COMPS AVG

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


17

SALES COMPARABLES

SUBJECT PROPERTY

Asking Price $4,514,000

Price/SF $683.94

CAP Rate 7.20%

GLA 6,600 SF

Lot Size 2.2 acre(s)

Year Built 2018

ABSOLUTE NET LEASE PALACIOS ST1414 Palacios Street, El Campo, Texas, 77437

1

Tenants Lease Type

Close Of

Escrow:12/9/2015

Days On

Market:100

Sales Price: $1,159,048

Price/SF: $646.79

CAP Rate: 7.25%

Year Built: 1997

JIFFY LUBE4835 Louetta Road, Spring, Texas, 77388

2

Tenants Lease Type

Close Of

Escrow:12/20/2016

Days On

Market:111

Sales Price: $1,443,890

Price/SF: $832.69

CAP Rate: 7.20%

Year Built: 1997

JIFFY LUBE13102 Louetta Road, Cypress, Texas, 77429

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


18

SALES COMPARABLES

3

Close Of Escrow 3/20/2015

Days On Market 281

Sales Price $3,100,000

Price/SF $770.00

CAP Rate 7.05%

GLA 4,026 SF

Lot Size 1.387 Acres

Year Built 2002

STRIPES CONVENIENCE STORE4420 West University Drive, Edinburg, Texas, 78539

4



Price/SF $480.38

CAP Rate 5.75%

GLA 6,000 SF

Year Built 1990

7–ELEVEN AND SHELL GAS AND CONVENIENCE STATION26730 East Highway 380, Little Elm, Texas, 76227

5


Days On Market 129


Price/SF $840.51

CAP Rate 6.43%

GLA 4,991 SF

Lot Size 1.15 Acres

STRIPES708 U.S. Highway 77, Schulenburg, Texas, 78956

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


19

SALES COMPARABLES

6


Days On Market 356


Price/SF $719.69

CAP Rate 6.40%

GLA 4,728 SF


Year Built 2006

7-ELEVEN5500 West MIle 7 Road , Mission, Texas, 78574

7



Price/SF $854.10

CAP Rate 6.00%

GLA 3,009 SF


Year Built 1999

CIRCLE K1701 South 10th Street, McAllen, Texas, 78503

8


Days On Market 91


Price/SF $2,427.18

CAP Rate 5.15%

GLA 1,200 SF


Year Built 2018

MURPHY EXPRESS GROUND LEASEAlt Highway 90 and University Boulevard, Sugar Land, Texas, 77478

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


20

SALES COMPARABLES

9



Price/SF $1,033.33

CAP Rate 4.72%

GLA 3,000 SF

Year Built 1998

7-11 VALLEY RIDGE900 Valley Ridge Boulevard, Lewisville, Texas, 75077

OFFERING SUMMARY

CHARLOTTE NNN

21

1414 S. PALACIOS STREET C-STORE EXXON

MISCELANEOUS PICTURES

- 21 -

Palacios Bar & Grill

OFFERING SUMMARY

CHARLOTTE NNN

ADDITIONAL PICTURES


- 22 -

OFFERING SUMMARY

CHARLOTTE NNNABSOLUTE NET LEASE PALACIOS STREET

MISCELANEOUS PICTURES

- 23 -


24

MARKET

OVERVIEW

HOUSTONOVERVIEW

As the fifth most populous metro area in the U.S., Houston houses

nearly 6.9 million people in southeastern Texas. The market is

composed of nine counties: Harris, Galveston, Brazoria, Fort Bend,

Chambers, Montgomery, Austin, Liberty and Waller. The Gulf of

Mexico, which borders the metro to the southeast, provides access to

markets around the world via the Port of Houston, making it a prime

location for exports. Local industries have diversified from oil to

technology and healthcare. Many companies provide goods and

services for the large population growth, which has sprawled, primarily

to the north and west. The city of Houston is the largest in the metro

with 2.3 million residents.

MARKET OVERVIEW

METRO HIGHLIGHTS

CORPORATE GROWTH

Houston will remain a top destination for corporate

relocations due to its business-friendly environment.

Twenty Fortune 500 companies are headquartered

in the metro.

HIGHER EDUCATION

Over 40 post-secondary educational institutions are

located in the metro. Nearly 30 percent of residents

have attained a bachelor’s degree, with 11 percent

also holding a graduate or professional degree.

LOW COST OF LIVING, DOING BUSINESS

Houston has a lower cost of living than many major

metros, no state income tax and a median home

price below the national level.


25

ECONOMY▪ The economy is diversifying to include biotechnology, distribution, nanotechnology and

logistics; the metro is the center of the energy production with roughly 260,000 workers.

▪ Local product manufacturing is a large segment of the economy and includes paper,

electrical and electronic machinery, iron, steel and petrochemicals.

▪ Healthcare is gaining economic prominence. Specialized medical education and training

institutions boost the local economy and supply a growing hospital system.

▪ The Port of Houston is one of the country’s busiest for exports, supplying thousands of jobs

and generating billions of dollars in revenue.

SHARE OF 2017 TOTAL EMPLOYMENT

MAJOR AREA EMPLOYERS

Memorial Hermann Healthcare System

University of Texas

The Kroger Co.

Exxon Mobil Corp.

Shell Oil Co.

Houston Methodist

United Continental Holdings

Baker Hughes Inc.

CHI St. Luke’s Health

Hewlett Packard Enterprise* Forecast

MANUFACTURING8%

GOVERNMENT

HEALTH SERVICES

EDUCATION AND

OTHER SERVICES AND MINING

+NATURAL RESOURCES

3%

LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES

20%

AND UTILITIES

TRADE, TRANSPORTATION CONSTRUCTION

PROFESSIONAL AND

BUSINESS SERVICES

4%INFORMATION AND

16%

7%

14% 10% 5%

13%


26

DEMOGRAPHICS

▪ The Houston metro is expected to add 506,600 people through 2022 and roughly

111,500 of these residents will be millennials in the 20- to 34-year-old cohort.

▪ During the same period, nearly 229,500 households will be formed, generating

demand for housing.

▪ The homeownership rate of 61 percent is below the national rate of 64 percent. The

median home price of $247,200 is also below that the U.S.

Outdoor activities abound in Houston as a result of the city’s favorable location and climate.

More than a dozen state parks and recreation areas lie within a short drive of Houston, as

well as more than 500 parks and open spaces and various cultural venues and museums.

Johnson Space Center is a popular tourist and educational destination. The metro is also

known internationally for its medical community and is home to the Texas Medical Center,

the largest of its kind in the world. Houston is home to four professional sports teams: the

Houston Texans, the Houston Astros, the Houston Rockets and the Houston Dynamo.

* Forecast

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s

Analytics; U.S. Census Bureau

QUALITY OF LIFE

2017 Population by Age

0-4 YEARS

7%5-19 YEARS

22%20-24 YEARS

7%25-44 YEARS

29%45-64 YEARS

24%65+ YEARS

10%

SPORTS

EDUCATION

ARTS & ENTERTAINMENT


34.1

2017MEDIAN AGE:

U.S. Median:

37.8

$60,300

2017 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

$56,300

6.9M

2017POPULATION:

Growth2017-2022*:

7.4%

2.4M

2017HOUSEHOLDS:

9.6%

Growth2017-2022*:

27

MARKETING TEAM

Source: © 2015 Experian

PROPERTY NAME

#

CREATED ON SEPTEMBER 8, 2018

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAMEABSOLUTE NET LEASE PALACIOS ST

PRICING AND VALUATION MATRIX


28

DEMOGRAPHICS

1 Miles 3 Miles 5 Miles

POPULATION

2022 Projection 2,242 12,743 15,306

2017 Estimate 2,269 12,761 15,240

2010 Census 2,214 12,651 15,070

2000 Census 2,137 12,277 14,528

INCOME

Average $49,858 $61,277 $61,223

Median $34,824 $45,658 $45,731

Per Capita $16,231 $21,879 $21,615

HOUSEHOLDS

2022 Projection 741 4,581 5,442

2017 Estimate 739 4,533 5,355

2010 Census 719 4,484 5,286

2000 Census 705 4,375 5,096

HOUSING

2017 $86,976 $99,443 $101,978

EMPLOYMENT2017 Daytime Population

827 14,082 15,683

2017 Unemployment 4.66% 5.51% 5.27%

2017 Median Time Traveled

21 22 22

RACE & ETHNICITY

White 65.54% 76.22% 77.08%

Native American 0.00% 0.05% 0.05%

African American 20.25% 9.69% 8.76%

Asian/Pacific Islander

0.75% 0.60% 0.59%

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

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has

not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap

makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material

information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this

investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future

performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial

and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to

determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully

review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an

important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or

newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the

area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other

material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions.

Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic

value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should

default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the

location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind

of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

29

Confidentiality and Disclaimer

The 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 Real Estate 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 Marketing Brochure has been prepared to provide summary,

unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information

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 the financial 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 Marketing Brochure 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 has Marcus & Millichap conducted any investigation regarding these matters and makes no

warranty or representation whatsoever regarding the accuracy or completeness of the information provided. 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 Estate

Investment 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 AT WWW.TREC.TEXAS.GOV. YOU CAN SEND

A COMPLAINT AGAINST A LICENSE HOLDER TO TREC. A COMPLAINT FORM IS AVAILABLE ON THE TREC WEBSITE. TREC

ADMINISTERS TWO 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 THE RECOVERY FUNDS,

PLEASE VISIT THE WEBSITE OR CONTACT TREC AT:

TEXAS REAL ESTATE COMMISSION

P.O. BOX 12188

AUSTIN, TEXAS 78711-2188

(512) 936-3000

Non-Endorsement Notice

Marcus & 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 name is 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, or commercial 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.


El Campo, TX

ACT ID Z0860152

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

30

TEXAS BROKERAGE | SERVICES FORM

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 AGENT must be sponsored by a broker and works with clients on behalf of the broker.

A BROKER’S MINIMUM DUTIES 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 property management 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 known by 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 agent must 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 disclosed to 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 written agreement 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;

- 31 -

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

IABS 1-0

Marcus & Millichap 9002994 [email protected] 972-755-5200Licensed Broker /Broker Firm Name or Primary Assumed Business Name License No. Email Phone

Tim A. Speck 432723 [email protected] 972-755-5200Designated Broker of Firm License No. Email Phone

Ford Noe 709695 [email protected] 713-452-4200Licensed Supervisor of Sales Agent/Associate License No. Email Phone

David Fisher 691654 [email protected] 832-442-2828

▪ 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 subagentcan assist the buyer but does not represent the 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. Please acknowledge receipt of this notice below and retain a copy for your records.

____________/____________/____________/____________ __________Buyer / Tenant / Seller / Landlord Initials Date

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Activity ID: Z0860152

absolute net lease palacios street · 2018. 9. 21. · 2 absolute net lease palacios street...

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