jll--denbury--land--march 21 2018...greenbelts and forest preserves, and many of the area’s...
TRANSCRIPT
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±3,474 acresConroe, TX
SH 242 and FM 1314
Offers due March 21, 2018
No Outside Broker Fee
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ContactsJLL Houston1400 Post Oak BoulevardHouston, Texas 77056
Simmi JaggiSenior Vice President
+1 713 888 4098
Elizabeth ClampittSenior Vice President
+1 713 888 4075
Dan BellowPresident
+1 713 888 4001
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Table of Contents
5 Introduction
6 Investment Highlights
10 Montgomery County Highlights
15 Houston Area Highlights
16 Key Industries
20 Key Markets
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JLL is proud to offer a unique opportunity to acquire, in
all or part, a development opportunity in Conroe, Texas,
totaling approximately 3,474 acres (the Property). The
property is located 6 miles east of The Woodlands, along
SH 242 at the FM 1314 intersection. The Property is located
among one of the fastest growing and economically
successful areas of the United States. Conroe, with a
population of over 72,000, is one of the fastest growing
communities in the Houston region and is the county seat
and power center of Montgomery County, the 25th fastest
growing county in the United States.
The Property presents an opportunity to develop a large-
scale, multi-use project akin to other nearby projects. The
size, location and natural beauty of the Property presents a
rare opportunity for a developer to create a master planned
community with unprecedented beauty, superior access,
and unmatched green-space amenity potential.
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Investment Highlights
Opportunity Highlights• Superior access along SH 242 and FM 1314
• Strong potential for a mix of development densities,
and single-family detached residential
• Minimal obstacles to development, with local
government favoring a comprehensive development of
the parcel in the near-term
• Local area experiencing consistent year-over-year
growth
• New Exxon Mobil Corporate Campus (currently under
construction) located just 9 miles Southwest of the site
LocationThe property is located on the eastern edge of Conroe,
Texas, approximately six miles east of The Woodlands, and
nine miles northeast of the new Exxon Mobil Campus. The
Property contains multiple points of ingress and egress
along SH 242 and FM 1314.
SchoolsThe property is located in the desired Conroe ISD. Conroe
ISD is one of the fastest growing school districts in the
State with an average enrollment growth of approximately
1,500 students per year. The Texas Education Agency (TEA)
released a preliminary set of accountability ratings for
school districts and campuses across the state in January
of 2017 based on a new A-F rating system. According to
the TEA, the new rating system measures year-over-year
district and student performance beyond State of Texas
Assessments of Academic Readiness results.
The new rating system looks at four separate domains on a
campus and district level. Conroe ISD scored: B|A|B|C
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BushIntercontinental
Airport
HobbyAirport
EllingtonField
Pearland
Sugar Land
Kingwood
Tomball
Missouri City
Pasad
TheWoodlands
Houston
22 miles
38 miles
8 miles
SITE
10 miles
to Conroe
Economic DriversHouston remains one of the strongest economies in the
North Houston, including The Woodlands, Shenandoah,
and Conroe, comprises one of the most active submarkets
within the greater Houston MSA, driven by population
growth, increased household income, employment growth
and major corporate investment and expansion.
Development ConceptThe property consists of densely forested areas and open
one potential layout for development and should not be
containing Preliminary Feasibility items, which outlines key
information related to the development of the site.
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1 100 acres
2 90 acres
3 40 acres
4 40 acres
5 831.21 acres
6 2,259.02 acres
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Highlights
• Exxon Mobil’s global headquarters campus (just outside
Montgomery County) is open for business with some
14,000 employees, many of which relocated from other
states. The site is located ten miles south of Grand Lake
Park.
• Town Center in The Woodlands is a major employment
retail, residential, and entertainment facilities.
•
construction including the 327,000 square foot City
lower than the total Houston vacancy rate and down
nearly 3% from 2016.
• Lone Star Executive Airport is currently planning to
extend its major runway to 7,500 feet, which is expected
to expand business opportunities at the airport by
allowing larger jets to use the facility. In addition, Black
operator) facility, which is expected to increase the
• The 1,000 acre Conroe Industrial Park near the airport
continues to expand its employment base. The industrial
park is located 9 miles from Grand Lake Park.
• Nearby Lake Conroe is a major recreational amenity.
• The Conroe Independent School District offers a quality
public school system, supplemented by a select offering
of private college prep schools.
• Local government is supportive of quality development
in the region.
Montgomery CountyMeanwhile, Houston’s single family housing market has extended its hot streak in May, as realtors sold an all-time high of
9,744 units, a 12.3 percent increase year-over-year. Prices continue to hit new highs, as the median price of a single-family
home grew to $235,000, the highest median price of all time.
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ConroeThe U.S. Census Bureau rated Conroe as the fastest growing
city in the nation with a population over 50,000, having a
growth rate of 7.8% from 2015 to 2016 Located 40 miles
north of downtown Houston along Interstate 45, Conroe is a
rapidly growing city, rich with amenities and infrastructure.
The population (as of 2016) was 82,286, up from 36,811 in
2000, representing growth of 123%. With its proximity to
The Woodlands, Conroe is well positioned to continue its
growth pattern as the North Houston economy continues to
expand.
The WoodlandsThe Woodlands is an award winning master-planned
community located 32 miles north of Houston. Initially a
suburban bedroom community, it has grown to attract
multiple corporate headquarters to the area, and now
features campuses for the likes of Chevron Phillips,
Anadarko Petroleum Corporation, McKesson Corporation,
Hewitt Associates, Huntsman and more. Known for the nine
villages and districts that comprise The Woodlands, each
area has been thoughtfully developed to include shopping
centers, exceptional schools, extensive recreation facilities,
healthcare, and worship houses, much like a series of small
towns.
Quality of Life Established in 1974, The Woodlands may have started as
a suburban bedroom community, but it has grown to be
thriving destination of its own. As one of the country’s
become an international model for community planning
and development. The Woodlands has been thoughtfully
designed to preserve green space while delivering
convenient amenities and a true sense of community. Once
referred to by a visiting journalist as “the invisible city” due
to the ever present tree canopy, the Woodlands boasts over
6,950 acres of green space, including parks, golf courses,
greenbelts and forest preserves, and many of the area’s
amenities are accessible by pathways and trails.
The Woodlands is comprised of villages and districts,
ranging from an urban setting to gated communities, with
a variety of housing options in between. Each village has
its own schools, and is only minutes away from some of the
area’s best healthcare, recreation activities, as well as dining
and entertainment options.
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EducationEducation has long been held a top priority in The
Woodlands and Conroe, as evidenced by the lifetime
learning opportunities from preschool to graduate and
professional studies. The area is primarily served by the
highly-rated Conroe Independent School District, as well as
numerous private schools.
Residents in northern Houston also have the opportunity
to continue their education at the Lone Star College–
University Center in The Woodlands, with an enrollment of
over 7,500. A model distance learning program approved
by Texas Higher Education Coordinating Board, students
enrolled at Our Lady of the Lake University, Texas A&M,
Thomas undergraduate and graduate courses through LSR-
University Center.
HealthcareConvenient and comprehensive healthcare is important to
the well-being of any community. From emergencies to
surgery and childbirth to specialty services, healthcare in
The Woodlands continues to meet the growing needs of the
area.
Memorial Hermann-The Woodlands is a 351-bed state-of-
the-art facility, and the only Level III trauma center between
Houston and Dallas. Specialties include heart and vascular
services, a cancer center, a women’s center, imaging, and
pediatrics. Serving the community since 1985, it is one of 13
hospitals in the Memorial Hermann Healthcare System, one
of the top 15 healthcare systems in the country, and is the
St. Luke’s The Woodlands Hospital is part of the St. Luke’s
Episcopal System. Since opening in 2003, they have
continued to add services to the 192-private-bed hospital
through partnerships with The Texas Heart Institute, Texas
Children’s Hospital, and University of Texas M.D. Anderson
Cancer Center. In addition, numerous options for specialty
medical practitioners, doctors, dentists and clinics are
located throughout The Woodlands area.
RecreationThe Greater Houston metro area enjoys a subtropical
climate, with mild winter temperatures and hot summer
days that lend themselves to a variety of outdoor activities.
In Montgomery County, there is no shortage of outdoor
recreation opportunities that enrich the quality of life. From
other water sports activities, there is something for every
walk of life.
The Woodlands is well known for golf, having hosted
the PGA Houston Open in the past, as well as the LPGA
Samsung World Championship. With nine courses totaling
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162 holes for all skill levels, The Woodlands boasts Signature
courses from Arnold Palmer, Tom Fazio, Gary Player, and
Jack Nicklaus.
Lake Conroe provides the area with the best options for
water sports activities. At 21,000 acres, the lake was built
as an alternative water source by the city of Houston. Today
the lake has evolved into a recreation and event destination.
camp-sites ranging from primitive to deluxe cabins, as well
as hotels, motels, and residential development with access
to public and private docking services.
Retail & EntertainmentAs more companies – and more people – relocate
north of Houston, opportunities for shopping, dining,
and entertainment continue to grow. Conroe and The
Woodlands offer some of the area’s best shopping, from
specialty shops to malls and outlet centers. The Woodlands
offers the most comprehensive dining options, everything
Woodlands is also home to the Cynthia Wood Mitchell
Pavilion, a 16,000-seat performing arts center. Summer
home to the Houston Symphony, the venue also hosts a
variety of musical programming, from pops to classical and
opera.
The Woodlands, Texas
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Houston Area Highlights
Population & Job GrowthWith one of the strongest economies in the nation, Houston
is one of the nation’s fastest growing metropolitan areas,
expected to replace Chicago as the third-largest MSA in
America by 2020. The undeniable impact of the energy
sector, as well as elevated international trade through the
Port of Houston and a favorable business climate, has led
to consistent in-migration and economic expansion despite
the headwinds experienced during the Great Recession and
recent energy downturn.
The Houston Metro Area added 6,700 jobs in May, 2017
which nearly equals the area’s 20 year average of 6,800
jobs per month. According to the Texas Workforce
Commission (TWC), the 10-county Houston-Sugar Land-
Baytown MSA surpassed its pre-recession employment
populous metros to reach that milestone, recovering nearly
130 percent of jobs lost during the recession.
The Houston-Sugar Land-Baytown Metropolitan Statistical
area added 45,300 jobs in a 12 month period in ending May
the previous 12 month period at the height of the energy
downturn, in which the region added 4,000 jobs. The fact
that Houston has consistently added jobs throughout the
downturn is a testament to the strength and resiliency of
the region.
Houston’s May 2017 unemployment rate stands at 5.1
percent down from 5.8 Percent in May 2013 and down
nearly 300 basis points from its peak of 8.2% in 2009.
Today, over 3 million people are employed in the Greater
Houston MSA, an increase of nearly 500,000 jobs recorded
during the depths of the Great Recession.
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Key Industries
EnergyHouston is considered to be the U.S. energy headquarters
and a global leader in virtually every segment of the oil
and gas industry. The energy industry’s role in Houston’s
growing economy is undeniable. Houston is home to
over 4,800 energy-related establishments, including
establishments, and manufacturers and wholesalers of
energy-sector products. The concentration of energy
experience and expertise has translated to a large number
of corporate relocations to the Houston region, including 24
Fortune 500 and 46 fortune 1000 companies.
Eagle Ford Shale – The Eagle Ford Shale is quite possibly
the largest single economic development in the history of
the state of Texas. In 2013 alone, more than $30 billion was
invested in the area as a result of the shale boom. There are
multiple, rapidly growing unconventional oil and gas plays
across the U.S., but the Eagle Ford Shale (“EFS”) in South
Texas stands above other plays because of its heavy liquids
content, sprawling existing and proposed infrastructure,
high initial oil production rates, and proximity to some of
the largest energy markets in North America. EFS offers
geology favorable to rapid development, and is located
near many existing processing and fractionation plants,
multiple pipelines, and other infrastructure development.
Exxon Mobil – After acquiring 385 acres of undeveloped
land just south of the Woodlands, Exxon Mobil built what
is now the largest corporate complex worldwide. To date
over 10,000 employees have begun working at this new
facility. The campus was designed to be a state-of-the-
and services demands to the Montgomery County area,
including Conroe and The Woodlands.
International TradeHouston is the leader in international trade in the Gulf
States. So far in 2017, Port Houston has processed
approximately 20 million tons of cargo, up 13 percent
over the same point last year. Overall, the Port of Houston
handled $162.8 billion in trade in 2016 including $93 billion
in exports, making it the largest export market in the United
States.
expected to continue to outperform historical total in 2017.
Although petroleum products top imports and exports, if
they were subtracted from the trade through all customs
districts, Houston would drop only one spot in the rankings.
that based on those commodities alone, Houston would still
rank in the top 10 international trade districts. International
trade is also important to Houston with respect to the
demographic makeup of the city.
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Houston boasts nearly 1.5 million foreign born residents
with over 200,000 arriving since 2010. Additionally,
Houston houses 94 consulates, as well as 19 foreign banks
from 9 different countries. Houston is home to more and
5,000 international companies, more than 1,000 of which
250,000 jobs to the Houston economy.
Health Care & Life ScienceThe Houston region employs approximately 325,000
individuals in the life science and healthcare professions,
including biotechnology. Home to more than 4,000 life
science states in the country.
Houston is home to some of the best health care and life
science organizations in the nation, including the Texas
Medical Center (TMC). As the world’s largest medical
center, TMC contains 56 of the most renowned medical
research and academic institutions in the world, including
21 hospitals, three medical schools, six nursing schools,
two schools of pharmacy, as well as schools of dentistry
and public health. Exceeding thirteen hundred acres
and grossing nearly 45.8 million square feet, the TMC is
larger than downtown Dallas, and the 7th-largest business
district in the United States. A top medical destination,
TMC receives over 8 million visits annually and employs
nearly 106,000 people, including physicians, scientists,
researchers and other advanced degree professionals in the
life sciences. TMC generates an annual economic impact of
over $20 billion for the Houston region.
Engineering
economy. It reaches into every sector from private ventures
to energy to public works. As the metro area grows and
the economy continues to thrive, the need for developing
roads and buildings, providing water and waste water
solutions, as well as providing support to the oil and
gas industries, creates a strong demand for advanced
engineering and related technologies that meet these
needs. Houston’s extraordinary capabilities meet these
wide-ranging challenges on local, regional, national and
international levels. Local engineers touch nearly every
industry in Houston, from aerospace, chemicals and plastics,
environmental, forestry, construction management, land
development, power and energy, project management,
public works and transportation infrastructure.
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ChemicalsHouston is a global leader in the chemical industry, with
the capacity to produce nearly 41 percent of the base
chemicals used by downstream operations. With access
to comprehensive, developed infrastructure that includes
the most elaborate pipeline network in the world as well
as deep-water port access, Houston is a key production
center for specialty chemicals. According to the American
Chemistry Council, $85 billion worth of petrochemical
projects in the United States have been started or
completed since 2010, most of which can be found along
the Gulf Coast in or near the Houston MSA. In addition to
the exporting of crude oil derivatives meant for fuel or
lubricants, an enormous resins and plastics production
capability has been constructed in the last decade. Thanks
to this, Houston is home to the overwhelming majority of
plastics and resin production capacity in North America.
Nearly every major chemical company operates a plant
near Houston’s ship channel, including BASF Corporation,
BP, Chevron Phillips, DuPont, Shell, and Dow Chemical.
Recently, Exxon Mobil has announced plans to invest $20
plants on the Gulf Coast.
AerospaceHouston is home to Johnson Space Center, NASA’s largest
research and development facility. Located 24 miles
southeast of downtown on 1,620 acres, the JSC also serves
as the lead NASA center for communication with and
support of the International Space Station (ISS), a 16-nation
collaborative effort led by the U.S. The ISS is the largest,
most complex facility to operate in space.
As an aerospace hub for NASA-developed technology, the
metro area attracts the nation’s best high-tech professionals
over 50 aerospace contractors located in the area. In
all, JSC annually manages over $4.42 billion in federal
aerospace contracts, which include a local payroll of over
$2.0 billion annually. In addition to the considerable impact
to the Houston region throughout the Mercury, Gemini,
Apollo, and Space Shuttle programs, Houston is home to
dozens of companies that have contributed to NASA’s new
Orion Program.
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Key Markets
country. With over 165 million square feet of Class A
at 19.6 percent. Due to the energy downturn, Houston
has seen a spike in the amount of sublease space on the
market. However, there remains room for optimism. As
of the second quarter of 2017, the sublease inventory has
contracted in three consecutive quarters to 11.1 million
square feet, which represents a decrease of over one million
has returned to the market, as sales activity in 2017 has
proved to be much more robust following a slower 2016.
The construction pipeline of 2.3 million square feet is now
at its lowest level since 2012 and well below its ten-year
quarterly average of 4.7 million square feet. These projects
are well pre-leased, with just under seventy percent of the
developing inventory already spoken for. Looking to the
immediate future, 1.5 million square feet of the 5.8 million
square feet of active tenant requirements in the market is
lead all industries in active space requirements, accounting
for over 3.4 million square feet
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IndustrialHouston is an expanding industrial market characterized
not only by high-tech manufacturing and traditional
distribution and logistics tenants, but increasingly by large-
box eCommerce and downstream petrochem producers.
The region is utilized by many national and international
companies due to its strategic location, which includes the
areas of Conroe and The Woodlands. Positioned halfway
between the East and West coasts, only hours by air from
any metro area in the country, and home to one of the
nation’s largest and fastest growing ports.
Houston has one of the largest concentrations of industrial
space in the nation, with broad-based expansion underway.
Retail distribution, E-commerce, and plastics manufacturing
will continue to drive demand for warehouse and
distribution space. Demand from the Port of Houston, the
manufacturing industry, as well as Houston’s central location
as a logistics hub have driven industrial vacancy downward.
The Houston industrial market has maintained a healthy 5.1
percent vacancy rate despite over 43 million square feet of
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RetailThe robust local economy has had an undeniable effect on
the jobs lost during the recession, Houston’s retail market is
seeing consistent growth throughout the MSA. The leasing
market held up well in 2017, with new demand coming from
the fast casual industry across the metro, with particular
expansion occurring around Houston’s new Grand Parkway.
Although the city has suffered from big box closures like
Sears and Borders, robust demand has made it possible to
fallen to less than 5.5 percent marketwise. It is expected
that as long as the job market continues to improve and
in-migration numbers drive population growth, continued
demand for housing will have a directly positive effect on
the retail industry as well.
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Multifamily & ResidentialThe Houston apartment market continues to gather
and following negative rent growth in 2015. Houston’s
multifamily market now is facing the prospect of a much
smaller pipeline of new deliveries and more stable energy
net units absorbed, while the quarterly average from 2015
and 2016 was approximately 2,250. The stronger demand,
can be attributed to a growing population – both naturally
and by in-migration from outside the region.
According to the Greater Houston Partnership, Houston
added over 125,000 in overall population and people
continue to move to the city to capitalize on the growing
economy. Harris County is now the third-largest county in
the U.S. and continues to be a haven for moderately priced
housing, job opportunities, and elevated levels of retail and
entertainment development. While the perceived bottom
of the current Houston apartment cycle began during the
inventory, slowing construction and consistent population
growth will propel Houston to market equilibrium in the
near future.
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JLL Houston1400 Post Oak Boulevard
Houston, Texas 77056
Simmi JaggiSenior Vice President
[email protected]+1 713 888 4098
Elizabeth ClampittSenior Vice President
+1 713 888 4075
Dan BellowPresident
+1 713 888 4001