philip levy chris gainey

P H I L I P L E V Y C H R I S G A I N E Y972.755.5225 817.932.6122SENIOR MANAGING DIRECTOR FIRST VICE PRESIDENT [email protected] [email protected]

OFFERING MEMORANDUM

2

PROPERTY INFORMATION 3

Executive Summary 4

Property Description 5

Complete Highlights 6

LOCATION INFORMATION 7

Regional Map 8

Location Maps 9

Aerial Map 10

Aerial Map 11

Aerial Map 12

FINANCIAL ANALYSIS 13

Financial Summary 14

Income & Expenses 15

Rent Roll 16

DEMOGRAPHICS 17

Demographics Report 18

Demographics Map 19

IABS 20

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ContentsConfidentiality & Disclaimer

The information contained in the following Marketing Brochure is proprietary and strictlyconfidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichapand should not be made available to any other person or entity without the written consent ofMarcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverifiedinformation to prospective purchasers, and to establish only a preliminary level of interest in thesubject property. The information contained herein is not a substitute for a thorough duediligence investigation. Marcus & Millichap has not made any investigation, and makes nowarranty or representation, with respect to the income or expenses for the subject property, thefuture projected financial performance of the property, the size and square footage of theproperty and improvements, the presence or absence of contaminating substances, PCB's orasbestos, the compliance with State and Federal regulations, the physical condition of theimprovements thereon, or the financial condition or business prospects of any tenant, or anytenant’s plans or intentions to continue its occupancy of the subject property. The informationcontained 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 containedherein, nor has Marcus & Millichap conducted any investigation regarding these matters andmakes no warranty or representation whatsoever regarding the accuracy or completeness of theinformation provided. All potential buyers must take appropriate measures to verify all of theinformation set forth herein.

Non-Endorsement Notice

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant orlessee identified in this marketing package. The presence of any corporation’s logo or name is notintended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporationof Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commerciallisting of Marcus & Millichap, and is solely included for the purpose of providing tenant lesseeinformation about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS

Exxon | Yoli's Mexican Cuisine304 East Main Street, Whitehouse, TX 75791

TABLE OF CONTENTS

Section 1 PROPERTY INFORMATION

4

OFFERING SUMMARY

Sale Price: $2,525,000

Cap Rate: 7.60%

NOI: $192,000

Lot Size: 1.43 Acres

Year Built: 2014

Building Size: 5,440

Price / SF: $464.15

Marcus & Millichap is pleased to offer the opportunity to acquire a two-tenant retail strip center in Whitehouse, Texas, anchored byan Exxon gas station.

PROPERTY OVERVIEW

DEMOGRAPHICS

1 MILE 3 MILES 5 MILES

Total Households 1,606 4,381 8,194

Total Population 4,615 12,452 22,672

Average HH Income $81,610 $82,503 $85,704


PROPERTY INFORMATION | EXECUTIVE SUMMARY

5

PROPERTY OVERVIEW

Marcus & Millichap is pleased to offer the opportunity to acquire a two-tenant retail strip center in Whitehouse,

Texas. The 5,440-square foot center is anchored by an Exxon gas station and convenience store. Yoli’s Mexican

Cuisine occupies the remaining suite. Exxon is a brand new 10-year lease, and Yoli’s has nine years remaining on its

term. Both leases are triple-net with no landlord responsibilities and have two five-year options f or renewal.

Situated on 1.43 acres, the building was constructed in 2014.

C-store properties offer significant value to investors, including l imited risk of vacancy and a high value based on

the price of the asset. Additionally, investors are allowed a 15-year accelerated depreciation instead of the typical

39 years for stores that generate more than 50 percent of their revenue from petroleum product sales, providing

significant tax benefits.

LOCATION OVERVIEW

The subject property is located on Main Street just east of TX-110. Both are major thoroughfares in the city. Main

street has traffic counts of approximately 13,100 vehicles per day, and TX-110 has traffic counts of 19,400 vehicles

per day. Directly northeast of the property are H iggins Elementary School, H olloway Middle School, and

Whitehouse High School. Mozelle Brown Elementary, Whitehouse Junior High, and Stanton Smith Elementary are a

short distance to the west. Retailers in the area include CVS pharmacy, Golden China Buffet, Austin Bank,

Goodwill, Church’s Chicken, Pac ‘N Sac, Dairy Queen, Sonic, Pizza H ut, Brookshire’s grocery store, Subway,

McDonald’s, and others. The five-mile average household income i s $ 85,700, and t he population i s over 22,670

within five miles.

Whitehouse is approximately seven miles south of Tyler, Texas and is located in Smith County. The city is a

rapidly growing East Texas community featuring superior city services, highly rated schools, and numerous

recreational opportunities nearby.


PROPERTY INFORMATION | PROPERTY DESCRIPTION

6

SALE HIGHLIGHTS

• 5,440-Square Foot Two-Tenant Retail Strip

• Anchored by Exxon Gas Station and Convenience Store

• C-Stores that Sell Petroleum Products have Attractive Tax Benefits | Investors

are Allowed a 15-Year Accelerated Depreciation Compared to the Typical 39

Years

• Exxon is a Brand New 10-Year Lease

• Yoli's Mexican Cuisine has Nine Years Remaining on the Term

• Both Leases are Triple Net with No Landlord Responsibilities

• Both Leases have Two Five-Year Options for Renewal

• Building is Newer 2014 Construction

• Located at a Signalized Three-Way Intersection | Main Street is the Major East/

West Thoroughfare in the City | Traffic Counts are Approximately 13,100

Vehicles per Day

• Near the Intersection with TX-110 with Traffic Counts of 19,400 Vehicles per

Day

• The Subject Property is Centrally Located Near all Six of the City's School

Campuses

• Average Household Income of $85,700 Within Five Miles

• Whitehouse is a Rapidly Growing City in East Texas, Approximately Seven Miles

South of Tyler, Texas.


PROPERTY INFORMATION | COMPLETE HIGHLIGHTS

Section 2 LOCATION INFORMATION

8

Exxon | Yoli's MexicanCuisine


LOCATION INFORMATION | REGIONAL MAP

9


LOCATION INFORMATION | LOCATION MAPS

1 0


LOCATION INFORMATION | AERIAL MAP

1 1



1 2



Section 3 FINANCIAL ANALYSIS

1 4

INVESTMENT OVERVIEW

Price $2,525,000

Price per SF $464.15

CAP Rate 7.60 %

Total Return (yr 1) $192,000

OPERATING DATA

Gross Income $231,020

Operating Expenses $39,020

Net Operating Income $192,000

FINANCING DATA

Down Payment $2,600,000

Loan Type All Cash


FINANCIAL ANALYSIS | FINANCIAL SUMMARY

INCOME SUMMARY PER SF

Base Rent $192,000 $35.29

Real Estate Taxes Reimbursements $20,400 $3.75

Insurance Reimbursements $11,500 $2.11

Common Area Maintenance Reimbursements $7,120 $1.31

Gross Income $231,020 $42.47

EXPENSE SUMMARY PER SF

Real Estate Taxes $20,400 $3.75

Insurance $11,500 $2.11

Dumpster $2,400 $0.44

Supplies $3,600 $0.66

Pest Control $450 $0.08

Security $670 $0.12

Gross Expenses $39,020 $7.17

Net Operating Income $192,000 $35.29

1 5


FINANCIAL ANALYSIS | INCOME & EXPENSES

TENANT

NAME

UNIT

NUMBER

UNIT

SIZE (SF)

% OF

GLA

LEASE

START

LEASE

END

ANNUAL

RENT

ESC

DATE

PRICE

PER YEAR

LEASE

TYPE OPTION

EXPENSE

REIMBURSEMENT

Exxon Gas Station 3,640 66.91 5/01/18 4/30/28 $162,000 $44.51 NNN (2) 5-Yr $26,108.28

Yoli's Mexican Cuisine 1,800 33.09 6/01/17 5/31/27 $30,000 $16.67 NNN (2) 5-Yr $12,911.72

Totals/Averages 5,440 $192,000 $35.29 $39,020.00 $39,020.00

1 6


FINANCIAL ANALYSIS | RENT ROLL

Section 4 DEMOGRAPHICS

1 8

1 MILE 3 MILES 5 MILES

Total population 4,615 12,452 22,672

Median age 33.4 33.9 35.2

Median age (Male) 30.6 31.7 33.6

Median age (Female) 35.2 35.3 36.3

Total households 1,606 4,381 8,194

Total persons per HH 3.2 3.0 2.8

Average HH income $81,610 $82,503 $85,704

Average house value $163,135 $163,135 $165,269

Total Population - White 1,541 10,460 20,939

% White 33.4% 84.0% 92.4%

Total Population - Black 48 666 2,012

% Black 1.0% 5.3% 8.9%

Total Population - Asian 14 197 478

% Asian 0.3% 1.6% 2.1%

Total Population - Hawaiian 0 0 0

% Hawaiian 0.0% 0.0% 0.0%

Total Population - American Indian 0 0 3

% American Indian 0.0% 0.0% 0.0%

Total Population - Other 1 149 456

% Other 0.0% 1.2% 2.0%

Total Population - Hispanic 84 679 1,480

% Hispanic 1.8% 5.5% 6.5%

* Demographic data derived from 2010 US Census


DEMOGRAPHICS | DEMOGRAPHICS REPORT

1 9

POPULATION 1 MILE 3 MILES 5 MILES

Total population 4,615 12,452 22,672

Median age 33.4 33.9 35.2

Median age (Male) 30.6 31.7 33.6

Median age (Female) 35.2 35.3 36.3

HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES

Total households 1,606 4,381 8,194

# of persons per HH 3.2 3.0 2.8

Average HH income $81,610 $82,503 $85,704

Average house value $163,135 $163,135 $165,269

ETHNICITY (%) 1 MILE 3 MILES 5 MILES

Hispanic 1.8% 5.5% 6.5%

RACE (%)

White 33.4% 84.0% 92.4%

Black 1.0% 5.3% 8.9%

Asian 0.3% 1.6% 2.1%

Hawaiian 0.0% 0.0% 0.0%

American Indian 0.0% 0.0% 0.0%

Other 0.0% 1.2% 2.0%

* Demographic data derived from 2010 US Census


DEMOGRAPHICS | DEMOGRAPHICS MAP

INFORMATION ABOUT BROKERAGE SERVICES Texas 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;• 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 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.

Information available at www.trec.texas.gov Regulated 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

P H I L I P L E V YSenior Managing DirectorDallas Office

972.755.5225 Office817.380.1153 [email protected]: TX 0522087

5001 Spring Valley RoadDallas, TX 75244

C H R I S G A I N E YFirst Vice President InvestmentsFort Worth Office

817.932.6122 Office817.380.1153 [email protected]: TX 0612970

300 Throckmorton StreetFort Worth, TX 76102

Activity ID Z0060486

philip levy chris gainey

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