medical office building portfolio · 2017-04-09 · medical office building portfolio offering...

MEDICAL OFFICE BUILDING PORTFOLIOOFFERING MEMORANDUM

1650 E. WINDING WAYFRIENDSWOOD, TX

TRANSWESTERN HOUSTON | 1900 WEST LOOP SOUTH, #1300

HOUSTON, TX 77027 | 713.270.7700

WWW.TRANSWESTERN.NET/HOUSTON

2

OFFER GUIDELINES

Offers should be submitted electronically to Jonathan Peranich at [email protected] and include the following information: • Purchase Price • Earnest Money• Closing Period

• Sources of Debt and Equity• Other Terms

SITE VISITS

All site visits will be made by appointment only. Inquiries for tours as well as requests for additional information should be made through the Houston Transwestern Office by contacting Jonathan Peranich.

CONTENTS

Property Overview

Financial Analysis

Location Overview

Appendix

Page 03

Page 04

Page 05

Page 08

JONATHAN PERANICHHealthcare Advisory ServicesVice [email protected]

ASHLEY CASSELHealthcare Advisory ServicesVice [email protected]

1650 E. WINDING WAY - PORTFOLIO | Offering Memorandum

3

Property Overview - Lease Abstracts

PROPERTY NAME TENANT SQUARE FOOTAGE LEASE TYPE BASE RENT EXPENSE REIMBURSEMENT RENT PER SF

Building A Available 10,823 - $ - $ - $ -

Building B Memorial Hermann 7,590 Modified Net $173,432.00 $35,186.00 $22.85

Building B Available 3,233 - $ - $ - $ -

MEMORIAL HERMANN:

Memorial Hermann Health System is the largest health system in Southeast Texas with 5,500 affiliated

physicians and 21,000 employees. MHHS consists of 13 hospitals, 7 Cancer Centers, 3 Heart & Vascular

Institutes, and 27 sports medicine and rehabilitation centers, in addition to other outpatient and rehabilitation

centers. MHHS is the primary teaching hospital for The University of Texas Health Science Center at Houston

(UTHealth) Medical School.

TENANT - MEMORIAL HERMANN MEDICAL GROUP:

Memorial Hermann Medical Group provides primary care for thousands of Houston-area families. They are

a collaborative group of healthcare providers practicing evidence-based medicine in more than 60 locations

throughout the greater Houston area. The practice includes primary care physicians and advanced practice

providers.

PORTFOLIO OVERVIEW:

Property Address 1650 East Winding Way

Facility Type Multi Tenant

Number of Buildings (2) Two

Square Footage (2) 10,823 SF Buildings

Chain Organization Memorial Hermann

Year Built 2007


4

Financial Analysis

• Anchored By Memorial Hermann Primary Care Group

• No Medical Use Restrictions

• Shell Space/Custom Build-Outs Available By Seller At Cost

• Built To Withstand High Winds And Water

• Free Surface Parking

INVESTMENT HIGHLIGHTSIncome Annual PSF

Base Rent $173,432 $8.01

OPEX Reimbursement $35,186.00 $1.63

Total $208,618.00 $9.64

Expense

Taxes $30,462.14 $1.41

Insurance $37,815.31 $1.75

Landscaping $8,951.49 $0.41

Utilities $6,447.97 $0.30

Dumpster $4,358.46 $0.20

Pest Control $985.14 $0.05

R&M $11,511.09 $0.53

Total $100,531.60 $4.64

NOI $108,086.40 $4.99

Pricing

Portfolio Purchase Price $4,112,740.00

Purchase Price/SF $190.00

NOI $156,935.26


5

Location Overview

REGIONAL MAP OF FRIENDSWOOD, TX

F.M.

1960

Clear Lake

Pearland

Friendswood


6

Location Overview

CITY MAP OF FRIENDSWOOD, TX

45

ChallengerSeven

Memorial Park

Clear CreekShores

Kroger Pharmacy

Nasa Value CenterShopping Center

Friend

swoo

d Link

Rd

Whispe

ring P

ines A

ve

Friendswood Link RdFife

Ln

Grey Mist Dr

Signal Hill Dr

Tower

Rid

geDavid Glen Dr

Laura

Leigh

DrTownes Rd

Forest Bend Ave

Tibet Rd

Bougainvilla LnBarcelona Dr

Regatta Run Dr

Rolling Fog DrAbercr

eek Ave

Apple Blossom

LnO

xnard Ln

Hibiscus Ln

Royal Pkw

y

Forest Bend Ave

Tibet RdClearview

Dr

Brown Dr

Deepwood Dr

Winding Way Dr

Charlesto

n Dr

Victori

a Way

Pine C

reek D

r

Ravine Dr

Oxnard Ln

Lucia

n Ln

Point Rock RdSaffr

on Ln

Star Dale Ln

Per

idor

Ln

Hibiscus Ln

Silverleaf Dr

Regen

cy C

tWind

sor D

r Le

isure

Ln

Leisu

re Ln

N Clea

r Cree

k Dr

Field C

reek D

r

Talon Dr

Airline Dr

Butler Dr

Oak Dr

Oak D

r

Pine Dr

Mc Kissick Dr

Pilgrima P

oint Dr

Heritage Bay Dr

Plymouth Colony Dr

Creek B end Dr

Autumn Creek Dr

Heritage C

ove D

r

Heritage Colony D

r

Prince

Geo

rge D

r

Park Bend Dr

Duchess Park Ln

Que

ensb

urg Ln

Duke L

n

Fire

nze D

rAbigail Ln

W Map

le Dr

Evergreen

Chuck Dr

Grisso

m R

d

W N

asa

Rd

Grissom Rd

Sha

dy L

n

W N

asa

Rd

Palomino Ln

Jasmine St

Au

tumn Leaf D

r

Red

Maple Dr

M aple Hill Dr

Burr Oak

Dr

Cedar Ridge Trail

Harvest Hill D rBay Area Blvd

Bay

Area

Blvd

Bay Area Blvd

Blackhawk Blvd

Clear Creek

Clear Creek

Clea

r Creek

Chigger Creek

1650 E. Winding Way Dr.


7

Location Overview

Friendswood is a progressive suburban city conveniently

located between downtown Houston and Galveston

near three major airports and deepwater ports with easy

thoroughfare and railway access. Known for its extraordinary

demographics, including a highly educated, affluent

resident base and an outstanding public school system. The

City of Friendswood offers continuous business relocation

and expansion assistance including economic development

incentives.

• 32 miles to the Galveston Beach

• 32.5 Miles to the Port of Galveston

• 19 Miles to the Port of Houston

• 11.03 Low Crime Rate per 1,000 population

• Top 100 Safest Cities in the U.S.

• 77% of Household Incomes over $75,000

• $1,267,020 Average Net Worth

• $124,608 Average Household Income

• 13, 654 Households

• $384,730 - 2013 Average New Home Permit

• 77546 - 21st Wealthiest Zip Code in the Houston Area

• 52% of Residents with a Bachelor’s or Graduate Degree

FRIENDSWOOD, TX OVERVIEW

POPULATION GROWTHCity of FriendswoodPopulation (5 mile)

Friendswood Area Population (10 mile)

2010 128,901 503,787

2014 138,840 536,931

2019 152,668 584,137

2024 167,201 637,410

Percent Change 2014-2019

9.96% 8.79%

Percent Change 2019-2024

9.52% 9.12%

CURRENT YEAR ESTIMATED HOUSEHOLD INCOME

Average Household Income

1-Mile $124,6085-Mile $98,033

$87,163


8

Appendix A

EXTERIOR SITE PLAN


9

Appendix B

BUILDING A FLOORPLAN


10

Appendix C

BUILDING B FLOORPLAN

AVAILABLE SUITE


FOR MORE INFORMATION, PLEASE CONTACT:

JONATHAN PERANICHTranswesternHealthcare Advisory ServicesVice President

[email protected]

713.270.3379

ASHLEY CASSEL Transwestern Healthcare Advisory ServicesVice President

[email protected]

713.490.3785

Transwestern is a privately held real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise

leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm

capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 U.S. offices and assists clients

through more than 180 offices in 37 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate.

CONFIDENTIAL MEMORANDUM & DISCLAIMER

Transwestern (“Agent”) has been engaged as the exclusive agent for the sale of 1650 E. Winding Way located in Friendswood, TX (the “Property”), by the owner of the Property (“Seller”). The Property is being offered for sale in an “as-is, where-is” condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum.

The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. Neither the enclosed materials nor any information contained herein is to be used for any other purpose or made available to any other person without the express written consent of the Seller. Each recipient, as a prerequisite to receiving the enclosed, should be registered with Transwestern as a “Registered Potential Investor” or as “Buyer’s Agent” for an identified “Registered Potential Investor.” The use of this Offering Memorandum and the information provided herein is subject to the terms, provisions and limitations of the confidentiality agreement furnished by Agent prior to delivery of this Offering Memorandum. The enclosed materials are being provided solely to facilitate the prospective investor’s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Agent or the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein.

Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller.

Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller’s obligations thereunder have been satisfied or waived.

By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller or Agent or as otherwise provided in the Confidentiality and/or Registration Agreement executed and delivered by the recipient(s) to Transwestern.

K:\Lisa Baker\4-CARLOS & DAVID FLYERS\1a - Links\Broker Disclosure_HAZ_ADA_Code 1445 Generic For FLYERS-TW.doc

TRANSWESTERN PROPERTY COMPANY SW GP, L.L.C.

SALE/LEASE AMERICAN’S WITH DISABILITIES ACT, HAZARDOUS MATERIALS AND TAX DISCLOSURE

The Americans with Disabilities Act is intended to make many business establishments equally accessible to persons with a variety of disabilities; modifications to real property may be required. State and local laws also may mandate changes. The real estate brokers in this transaction are not qualified to advise you as to what, if any, changes may be required now, or in the future. Owners and tenants should consult the attorneys and qualified design professionals of their choice for information regarding these matters. Real estate brokers cannot determine which attorneys or design professionals have the appropriate expertise in this area. Various construction materials may contain items that have been or may in the future be determined to be hazardous (toxic) or undesirable and may need to be specifically treated/handled or removed. For example, some transformers and other electrical components contain PCB’s, and asbestos has been used in components such as fire-proofing, heating and cooling systems, air duct insulation, spray-on and tile acoustical materials, linoleum, floor tiles, roofing, dry wall and plaster. Due to prior or current uses of the Property or in the area, the Property may have hazardous or undesirable metals (including lead based paint), minerals, chemicals, hydrocarbons, or biological or radioactive items (including electric and magnetic fields) in soils, water, building components, above or below-ground containers or elsewhere in areas that may or may not be accessible or noticeable. Such items may leak or otherwise be released. Real estate agents have no expertise in the detection or correction of hazardous or undesirable items. Expert inspections are necessary. Current or future laws may require clean up by past, present and/or future owners and/or operators. It is the responsibility of the Seller/Lessor and Buyer/Tenant to retain qualified experts to detect and correct such matters and to consult with legal counsel of their choice to determine what provisions, if any, they may wish to include in transaction documents regarding the Property. Sale, lease and other transactions can have local, state and federal tax consequences for the seller/lessor and or buyer/tenant. In the event of a sale, Internal Revenue Code Section 1445 requires that all buyers of an interest in any real property located in the United States must withhold and pay over to the Internal Revenue Service (IRS) an amount equal to ten percent (10%) of the gross sales price within ten (10) days of the date of the sale unless the buyer can adequately establish that the seller was not a foreigner, generally by having the seller sign a Non-Foreign Seller Certificate. Note that depending upon the structure of the transaction, the tax withholding liability could exceed the net cash proceeds to be paid to the seller at closing. Consult your tax and legal advisor. Real estate brokers are not qualified to give legal or tax advice or to determine whether any other person is properly qualified to provide legal or tax advice. SELLER PURCHASER By: By: Title: Title: Co. Name: Co. Name: Date: Date:

medical office building portfolio · 2017-04-09 · medical office building portfolio offering...

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