the #1 rule in real estate is “location, location
TRANSCRIPT
IntersectIon of IH-10 and Yale street • Houston, texas
The #1 Rule in Real Estate is “location, location, location!” Yale Street Market is a 114,300 square foot in-fill, grocery-anchored shopping center
situated in Houston, Texas, in one of the most dynamic trade areas in the state. The Property is being offered for sale to an exclusive set of
investors and presents an opportunity to acquire a brand new grocery-anchored center with long-term stability and contractual NOI growth.
Recreated PMS
rYan WestManaging Director
(713) 852-3535
rustY tamlYn, ccIm, sIorSenior Managing Director
(713) 852-3561
matt BerrYReal Estate Analyst
(713) 852-3540
corBY cHaffInAssociate Director - Debt
(713) 852-3455
Hff Houston9 Greenway Plaza, Ste. 700
Houston, TX 77046
(713) 852-3500 www.hfflp.com
INVESTMENT HIGHLIGHTS PROPERTY OVERVIEW
• Opportunity to Acquire Infill Best of Class Development
• 100% Leased to National Tenants Including LA Fitness, Sprouts, Cost
Plus World Market and Guitar Center
• Extremely stable cash flow with rental escalations and long term leases
• Approximately 8 Acre Retail Development in the Washington Heights Trade Area
• Significant Capital Investment and Revitalization Efforts Have Transformed the Immediate Area
• Adjacent to the only Inner Loop WalMart
• AFIRE’s #5 Best City in the World of Commercial Real Estate
Investment
• #1 Job Market in The United States with 118,200 New Jobs in 2012
• Strong Demographic Profile with Average Incomes Exceeding $98,000
within a One Mile Radius with an Estimated 12.67% Population Growth by 2019
• Grocery Anchored Center Fully Leased Prior to the Beginning
of Construction.
address: Interstate 10 and Yale Street
Houston, Texas 77007
Year BuIlt: Under Construction (1Q 2014)
ProPertY sIze: 114,300 SF
land area: 8.07 acres
occuPancY: 100%
notaBle tenants:
ParkIng area: 379 Ground Parking and 168 Roof Top Parking
547 Total Parking
traffIc counts:
tenant square feet exPIratIon
LA Fitness 45,000 Apr-29
Sprout’s 27,529 Apr-29
World Market 18,818 Apr-24
Guitar Center 15,556 Apr-24
Mattress Firm 4,015 Apr-24
Sprint 3,382 Apr-24
* projected expiration dates
locatIon VeHIcles Per daY
Interstate 10 East of Yale Street 196,000
Interstate 10 West of Yale Street 223,000
Yale Street @ Interstate 10 13,430
M e mor
ial
Dr
Washington Ave
West Alabama Street
Taft St
Montrose B
lvd
Dunlevy
W T C Jester Blvd
E T C Jester BlvdElla Blvd
Durham
Dr
Heights B
lvd
White Oak Dr
11th St
2 Mile
1 Mile
N Main St
Yale St
Shepherd Dr
Shepherd Dr
Kirb
y D
r
Westheimer Road
Westheimer Road
San Felipe St
Memorial Park
2
1
3
4
5
BayouBu�alo
6
TRADE AREACOMPETITIVE PROPERTIES
PoPulatIon 1 mIle 2 mIle 3 mIle
2018 Projection 20,596 82,180 175,378
2013 Estimate 18,494 75,534 163,543
2010 Census 17,217 71,765 156,906
2000 Census 12,050 60,641 142,207
Growth 2013-2018 11.37% 8.80% 7.24%
Growth 2010-2013 7.42% 5.25% 4.23%
Growth 2000-2010 42.87% 18.34% 10.34%
2013 Est. Avg. Household Income $97,660 $103,626 $96,027
Yale Street Market is a new urban development advantageously positioned in the Washington Heights submarket, which has elevated itself to one of the strongest retail submarkets in the city with one of the highest net absorptions, average rents and average occupancies. The trade area has experienced tremendous growth in recent years; much of this growth can be attributed to the in-migration of professionals, who choose the area for its live, work, and play environment.
comp no. name location anchors grocer size occupancy1 Merchants Park 11th Street and Shepherd Kroger 88,988 98.0%2 Studemont Kroger 1440 Studemont Kroger 79,087 100.0%3 Wal-Mart SWQ of Yale Street and Interstate 10 Wal-Mart 150,000 100.0%4 Whole Foods NEC West Dallas and Waugh Whole Foods 40,450 100.0%5 River Oaks Shopping Center Shepherd Drive and W. Gray Street Kroger 55,670 97.0%6 Sawyer Heights Taylor Street and Crockett Street Target 123,734 100.0%
Subject Yale Street Market SWC of Yale Street and Interstate 10 Sprouts 27,529 100.0%
LakeHouston
San Jacinto
Bay
SheldonReservoir
GalvestonBay
SmithersLake
ClearLake
George BushPark
LakeHouston
State Park
ArmandBayouPark
WilliamP. HobbyAirport
George BushIntercontinentalAirport
HARRISCOUNTY
LIBERTYCOUNTY
FORT BENDCOUNTY
MONTGOMERYCOUNTY
BRAZORIACOUNTY
GALVESTONCOUNTY
Downtown
Galleria
TexasMedical Center
Westpark Tollway
Katy Frwy
Southwest F
rwy
Northwest Frwy
East
ex F
rwy
NorthLoop
LoopSouth
Wes
t Loo
p
East
Loo
p
Sam Houston Tollway
Sam Houston Pkwy
Pasadena Frwy
Baytown East Frwy
Sout
h Fr
wy
Fort
Pkwy
Gulf Frwy
Gra
nd P
kwy
Und
er C
onst
ruct
ion
Proposed
GrandPkwy
Proposed Grand Pkwy
Westheimer Rd
Ben
d
Gran d Parkway Under C
onstruction
SITE PLAN
K O E L E R S T R E E T
YA
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ST
RE
ET
I N T E R S T A T E H I G H W A Y 1 0F R O N T A G E R O A D
I N T E R S T A T E H I G H W A Y 1 0
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27,529 SF
15,556 SF
18,818 SF
45,000 SF
Elevator
Elevator
R O O F T O P P A R K I N G
4,015 SF
3,382 SF
Sprouts Farmers Market, Inc., through its subsidiaries, engages in the sale of natural and
organic food in the United States. Its products include fresh produce, bulk foods, vitamins and
supplements, grocery products, meat and seafood products, bakery products, dairy and dairy
alternatives, frozen foods, fresh deli specialties, beer and wine, body care, and natural household
products. As of September 10, 2013, the company had 166 stores in Arizona, California,
Colorado, New Mexico, Nevada, Oklahoma, Texas, and Utah. Sprouts Farmers Market, Inc. was
founded in 2002 and is based in Phoenix, Arizona.
The company went public in August of 2013 and reported $340 million in net proceeds from the
IPO. As of September 2013 the company had generated $101 million in cash from operations
this year and remains one of the nation’s fastest growing retailers. Revenues have increased
significantly over the past three years, 33% in 2012, 62% in 2011 and 113% in 2010 respectively.
LA Fitness is a privately owned health club chain with over 540 clubs across the United States
and Canada. The company was founded in 1984 and is based in Irvine, California. Major
ownership interest held by private equity firms reportedly includes Seidler Equity Partners, CIVIC
Partners, and Madison Dearborn Partners. The company serves well over 2.5 million members.
In 2012, revenue was estimated at $1.4 billion, and EBITDA was $360 million. The company has
zero long-term debt. Using GAAP standards its current net worth is $605 million.
Cost Plus World Market was founded in San Francisco in 1958 and currently has 259 stores
in 30 states across the nation. Cost Plus is a chain of specialty/import retail stores that offer a
wide array of goods from many countries such as dishes, rugs, furniture, candles and plates, as
well as many artistic and cultural accessories. In addition, Cost Plus also has a large selection
of international dry goods (non-refrigerated foods), including imported snacks, candies, and
condiments. They are especially well known for an extensive wine selection in most stores. The
company is currently headquartered in Oakland, California, and has over 2,400 employees. Cost
Plus, Inc. was acquired by Bed Bath and Beyond in May 2012.
tenant: Sprouts Farmers MarketParent company: N/Asquare feet: 28,490Public/Private: Publicticker symbol: NASDAQ: SFM2012 Ye revenue: $1.7 billions&P rating: B+Website: www.sprouts.com
tenant: LA FitnessParent company: N/Asquare feet: 45,000Public/Private: Privateticker symbol: N/A2012 Ye revenue: N/As&P rating: N/AWebsite: www.lafitness.com
TENANT PROFILES
tenant: Cost Plus, Inc.Parent company & guarantor: Bed Bath & Beyondsquare feet: 18,230Public/Private: Publicticker symbol: NASDAQ: BBBY2012 revenue $9.5 Billions&P rating: BBB+Website: www.worldmarket.com
39%
5%6%
24%
10% 14%
% of total Base rent reVenue:
TENANT PROFILES
Guitar Center is a privately held company that was established in 1959 and is currently
headquartered in Westlake Village, California. Guitar Center, the nation’s largest musical
instrument retailer, was acquired in 2007 by Bain Capital for $2.1 billion. With over 230 stores
in 43 states, Guitar Center specializes in the sale of guitars, bass, drums, amps, DJ equipment
and keyboards. In addition to their stores, the firm manages roughly 100 Music & Arts Center
stores that sell more traditional instruments. Its subsidiaries, Musician’s Friend and Music 123,
manage their catalog and internet sales.
Sprint Corporation is a telecommunications holding company that provides wireless services
and is also a major global Internet carrier. It’s the third largest U.S. wireless network operator
as of 2013, and serves more than 64.3 million customers. In addition to the Sprint brand, the
company also offers wireless voice, messaging, and broadband services through its various
subsidiaries under the Clear, Boost Mobile, Virgin Mobile and Assurance Wireless brands.
In July 2013, a majority of the company was purchased by Japanese telecommunications
company SoftBank Corporation, although the remaining shares of the company continue to
trade on the NYSE.
Mattress Firm Holding Corp., through its subsidiaries, operates as a specialty retailer of mattresses,
and related products and accessories in the United States. It offers conventional mattresses;
specialty mattresses, including viscoelastic foam mattresses; and furniture and accessories,
which comprise headboards and footboards, bed frames, mattress pads, and pillows, as well as
provides delivery services. As of January 29, 2013, the company operated 1,057 stores and its
franchisees operated 158 stores primarily under the Mattress Firm name in 29 states. Mattress
Firm Holding Corp. was founded in 1986 and is headquartered in Houston, Texas.
tenant: Mattress FirmParent company: N/Asquare feet: 4,015Public/Private: Publicticker symbol: NASDAQ: MFRM2012 Ye revenue: $1.12 Billionmoodys rating: B2Website: www.mattressfirm.com
tenant: Guitar CenterParent company: N/Asquare feet: 15,600Public/Private: Privateticker symbol: N/A2012 revenue: N/As&P rating: N/AWebsite: www.guitarcenter.com
Recreated PMS
tenant: Sprint WirelessParent company: N/Asquare feet: 3,382Public/Private: Publicticker symbol: NYSE: S2012 Ye revenue: $35.3 Billions&P rating: BB-Website: www.sprint.com
EAST FACING AERIAL
I H - 1 0I H - 1 0
K O E H L E R S T R E E T
K O E H L E R S T R E E T
W A S H I N G T O N A V E N U E
W A S H I N G T O N A V E N U E
M E M O R I A L D R I V E
M E M O R I A L D R I V E
THE TEXASMEDICAL CENTER
THE TEXASMEDICAL CENTER
MONTROSEMONTROSE
CBDCBD
10
YA L E S T R E E T
YA L E S T R E E T
RIVER OAKS PLAZARIVER OAKS PLAZASAWYER HEIGHTSSHOPPING CENTERSAWYER HEIGHTSSHOPPING CENTER
H E I G H T S B O U L E VA R D
H E I G H T S B O U L E VA R D
S T U D E M O N T S T R E E T
S T U D E M O N T S T R E E T
WEST FACING AERIAL
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H E I G H T S B O U L E VA R DWA S H I N G T O N A V E N U E
WA S H I N G T O N A V E N U E
MEMORIAL PARKMEMORIAL PARK
UPTOWN PARKUPTOWN PARKTHE GALLERIATHE GALLERIA
RIVER OAKSRIVER OAKS
GREENWAY PLAZAGREENWAY PLAZA
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M E M O R IAL D
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YA L E S T R E E TYA L E S T R E E T
INVESTMENT SALES
FOR FINANCING INQUIRIES
matt BerrY
analyst
(713) 852-3540
9 greenway Plaza, suite 700
Houston texas 77046
Phone (713) 852-3500
fax (713) 852-3490
www.hfflp.com
© 2013 Hff (nYse: Hf) operates out of 21 offices nationwide and is a leading provider of commercial real estate and capital markets services to the u.s. commercial real estate industry. Hff offers clients a
fully integrated national capital markets platform including debt placement, investment sales, structured finance, private equity, note sales and note sale advisory services and commercial loan servicing.
Hff has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than Hff and we make no representations
or warranties, express or implied, as to the accuracy or completeness of such information. any and all references to age, square footage, income, expenses and any other property specific information are
approximate. any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that
used by a buyer. Buyers should conduct their own independent investigation and rely on those results. the information contained herein is subject to change.
rYan West
managing director
(713) 852-3535
corBY cHaffIn
associate director
(713) 852-3455
rustY tamlYn, ccIm, sIor
senior managing director
(713) 852-3561