15-YEAR ABSOLUTE TRIPLE-NET (NNN) INDUSTRIAL SALE LEASEBACK
922 HILL RD, HOUSTON, TX 77037
FUTECH MARITIME CAPITAL PARTNERS
MARKETING PACKAGE
TABLE OF CONTENTS 03 The Offering 04 Investment Summary 05 Property Photos 07 Lease Summary 08 Rent Schedule 09 Site Plan 10
About the Portfolio Companies
11
About the Lease Guarantor
12
Location Overview
15
Contact
CONTACT INFORMATION
NINA VALTCHANOV Associate (424) 325-2624
REED MELILLO Senior Director (424) 325-2606
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922 HILL RD, HOUSTON, TX 77037
FUTECH MARITIME CAPITAL PARTNERS
The OFFERING
James Capital Advisors is pleased to present this rare opportunity to purchase the 15 year sale leaseback of a multi-purpose industrial site located in Houston, TX. The tenant Futech Maritime Capital Partners (“FMCP”), a family office located in Mansfield, TX, will be consolidating the operations of two portfolio companies to this site, making this an essential location for their core investments. The facility includes a total of six buildings providing 28,783 square feet of warehouse, manufacturing and office space on a total of 6 acres of land, allowing for additional room for FMCP to expand the facilities. Under the FMCP umbrella, MetCo, a premier metal fabrication and distribution business and Goldstar, a Marine Transport & Logistics Provider will operate and share synergies at this site. Each of these businesses will complement each other and share clientele, as well as support FMCP’s other investments in international shipping and importing & exporting. Combined TTM revenues for the two businesses operating at the site are more than $9 Million and are expected to grow substantially as they begin to operate in tandem. At the close of escrow, FMCP will sign a 15-year Absolute Triple-Net (NNN) Lease. The lease will feature 2% annual rent increase throughout the base term and two, five-year options to extend. The subject lease will be backed by the corporate umbrella FMCP, which will own of all four portfolio companies operating on the site.
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922 HILL RD, HOUSTON, TX 77037
FUTECH MARITIME CAPITAL PARTNERS
INVESTMENT SUMMARY Tenant Address City State Zip GLA Lot Size Year Built
Futech Maritime Capital Partners 922 Hill Rd Houston TX 77037 28,738 SF 6.00 AC
$
$2,200,000 LIST PRICE
% 9.09% CAP RATE $
$200,000 NET OPERATING INCOME
Price / SF
$76.55
2007
Absolute Triple-Net (NNN) Sale Leaseback At closing, this property will be operating under a brand new, 15-year Absolute Triple-Net (NNN) lease, under which the tenant is responsible for all real estate taxes, insurance and property maintenance. Corporate Lease from Family Investment Office The lease will be guaranteed by Futech Maritime Capital Partners (FMCP), a family office which will operate two businesses at this site, with revenues in excess of $9 Million at this location. Ample Rent Growth with 2% Annual Increases The lease will feature 2% annual increases, providing the landlord with the benefit of compounding rent growth and a strong hedge against inflation. Conservative Rent Structure Rent has been set conservatively, at less than $7 per sq. ft. The two businesses operating at the site provide very healthy unit-level fundamentals.
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922 HILL RD, HOUSTON, TX 77037
FUTECH MARITIME CAPITAL PARTNERS
PROPERTY PHOTO
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922 HILL RD, HOUSTON, TX 77037
FUTECH MARITIME CAPITAL PARTNERS
PROPERTY PHOTO
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922 HILL RD, HOUSTON, TX 77037
FUTECH MARITIME CAPITAL PARTNERS
LEASE SUMMARY Lease Type
Real Estate Taxes
Tenant Responsible
Insurance
Tenant Responsible
15 Years
Roof & Structure
Tenant Responsible
COE
Lease Guarantor
Corporate
Lease Expiration
15 Years from COE
Company Name
Futech Maritime Capital Partners
Term Remaining
15 Years
Type of Ownership Original Lease Term Commencement Date
Increases Options
Absolute Triple-Net (NNN) Fee Simple
2% Annually Two (2), 5-Year
Ownership Parcel No. (APN) Building Class
Private 6000003011586 C
*COE denotes Close of Escrow transaction between Seller and Subject Property.
Long-Term History at This Site MetCo was first established in 1995, and has been at this location since 2006, indicating the longevity and stable operations of the company at this site. At the close of escrow, FMCP will be operating two synergistic businesses from this site, allowing them to share resources, clients and complement each other’s business models. 4th Most Populous City Nationwide This asset is located in Houston, the 4th most populous city in the United States with over 2.3 million residents. Excellent Site-Level Visibility Ideally positioned off of Hill Road, this property has visibility from an estimated 19,795 vehicles passing daily. Dense Demographics in the Immediate Trade Area There is an estimated 121,831 residents living within a 3-mile radius from the property, with an expected growth rate of 5.43% from 2020-2025.
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922 HILL RD, HOUSTON, TX 77037
FUTECH MARITIME CAPITAL PARTNERS
RENT SCHEDULE Period
Term
Annual Rent
Monthly Rent
Increase
CAP Rate
Year 1
Base Term
$200,000.00
$16,666.67
-
9.09%
Year 2
Base Term
$204,000.00
$17,000.00
2%
9.27%
Year 3
Base Term
$208,080.00
$17,340.00
2%
9.46%
Year 4
Base Term
$212,241.60
$17,686.80
2%
9.65%
Year 5
Base Term
$216,486.43
$18,040.54
2%
9.84%
Year 6
Base Term
$220,816.16
$18,401.35
2%
10.04%
Year 7
Base Term
$225,232.48
$18,769.37
2%
10.24%
Year 8
Base Term
$229,737.13
$19,144.76
2%
10.44%
Year 9
Base Term
$234,331.88
$19,527.66
2%
10.65%
Year 10
Base Term
$239,018.51
$19,918.21
2%
10.86%
Year 11
Base Term
$243,798.88
$20,316.57
2%
11.08%
Year 12
Base Term
$248,674.86
$20,722.91
2%
11.30%
Year 13
Base Term
$253,648.36
$21,137.36
2%
11.53%
Year 14
Base Term
$258,721.33
$21,560.11
2%
11.76%
Year 15
Base Term
$263,895.75
$21,991.31
2%
12.00%
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922 HILL RD, HOUSTON, TX 77037
FUTECH MARITIME CAPITAL PARTNERS
SITE PLAN 1.
Flooring Warehouse Built in 1969 2,165 TOTAL SQUARE FEET
2. Spare Part & Machine Maintenance Built in 1990 900 TOTAL SQUARE FEET
3. Hardware Supplies & Distribution Facility Built in 1994 7,759 TOTAL SQUARE FEET
4. Metal & Door Fabrication Facility Built in 1997 10,553 TOTAL SQUARE FEET
5. Painting and Finishing Facility Built in 2008 5,412 TOTAL SQUARE FEET
6. Office Building & Meeting Rooms Built in 2008 1,994 TOTAL SQUARE FEET
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922 HILL RD, HOUSTON, TX 77037
FUTECH MARITIME CAPITAL PARTNERS
About the Portfolio Companies Goldstar Goldstar is a marine logistics, construction, service & repair provider that operates throughout the Texas Gulf Coast and Louisiana. The company offers a wide variety of heavy lift, salvage and marine transportation while specializing in the oil field, inland and canal towing services. Goldstar’s vessels are available for long or shortterm projects. Goldstar has 32 employees with extensive operating experience as well as equipment to handle sizable projects. The company is experienced in inland & offshore sunken, beached boats & wreck removals. Services Provided by Vessels and Equipment • • • • •
Rig tending packages Pipeline installation and repair Bulkhead construction Pier and Jetty construction Barge & Boat Rentals
MetCo Met Company, Inc was founded in 1995 and is a premier metal fabricator, specializing in a variety of products. Met Company fabricates a vast assortment of materials including but not limited to: carbon steel, stainless steel, aluminium, galvanized and many exotic alloys (Hastelloy, Titanium, Nickel, etc.) They are proud to cover industries from all across the plain such commercial contractors, engineering & construction, petrochemical, oilfields, drilling contractors, U.S. Goverment / municipalities and many more. Company Capabilities • • • • •
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Turn Key Services Auto-Cad Design Heavy Fabrication Hi-Tech Water Jet Cutting Field Installation
922 HILL RD, HOUSTON, TX 77037
FUTECH MARITIME CAPITAL PARTNERS
ABOUT THE Lease Guarantor Futech Maritime Capital Partners
Futech Maritine Capital Partners was founded in 2019 as an independent sponsor by Leaveil Skinner. The company is headquartered in Mansfield, TX. Futech Maritime Capital Partners is an investment vehicle which serves as the holding company for acquiring and consolidating companies in maritime transportation, marine services, marine construction and marine infrastructure in Texas and other major port and marine terminal locations in the United States. Futech Maritine Capital Partners believes the paradigm shifts of the U.S as an exporter of oil and natural gas has resulted in significant growth opportunities for the sector. The company seeks close collaborations with existing management and their networks of operating executives to identify and enhance value at each of the acquired companies. They seek to acquire businesses where an auctionable operating plan can scale the business, improve operating margins and unlock substantial upside returns. They distinguish themselves by their disciplined approach of acquiring middle market companies with tangible downside protection in the largely fragmented U.S. marinetime sector.
Key Drivers The company utilizes capital relationships with high net work investors, family offices, private credit lenders, affiliates of advisors, network of regional banks that focus on small and medium-sized opportunities and junior lenders to fund acquisitions. They believe sustainable business growth requires key drivers that include sound strategies, strong partners and great relationships. Transaction Structures • Acquisitions of privately held business, including family owned companies • Management led buy-outs (MBOs) • Management buy-ins (partnering with executives to acquire attractive businesses ) • Leveraged buyouts (LBO’s) • Corporate divestitures of non-strategic divisions / assets • Add-on acquisitions
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922 HILL RD, HOUSTON, TX 77037
FUTECH MARITIME CAPITAL PARTNERS
LOCATION OVERVIEW Houston, TX
Houston is a large metropolis in Texas, extending to Galveston Bay. Alive with energy and rich in diversity, Houston is a dynamic mix of imagination, talent and first-class attractions that makes it a world-class city. Home to a vibrant economy, beautiful surroundings and a population full of optimism, Greater Houston is the most ethnically diverse metropolitan area in the US with at least 145 languages spoken by city residents. t’s closely linked with the Space Center Houston, the coastal visitor center at NASA’s astronaut training and flight control complex. The city’s relatively compact Downtown includes the Theater District, home to the renowned Houston Grand Opera, and the Historic District, with 19th century architecture and upscale restaurants. Try one of the countless restaurants available, offering cuisine in everything from Tex Mex and South American to Middle Eastern and Vietnamese. For sports fans, Houston has local teams representing all major sports. Do some shopping; Houston offers something to fit every budget - from the exclusive shops in Houston’s Uptown area to the outlet malls just outside the city.
Local Economy The economy of Houston employs 1.11M people. The largest industries in Houston are Health care & Social Assistance, Construction, and Retail Trade. Houston’s economy since the late 19th century has a broad industrial base in energy, manufacturing, aeronautics, and transportation. University of Houston Located in a sprawling metropolis, the premier Tier One campus provides students with cutting edge programs including undergraduate, graduate, doctoral, distance and continuing education. Ranked among the best colleges in America, University of Houston is home to award-winning faculty & innovative research centers. Professional Sports Houston has sports teams for every major professional league except the National Hockey League. Houston’s professional sports teams include the MLB’s Houston Astros, the NFL’s Houston Texans, the MLS’ Houston Dynamos, the MLR’s Houston SaberCats, and the NBA’s Houston Rockets.
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922 HILL RD, HOUSTON, TX 77037
FUTECH MARITIME CAPITAL PARTNERS
DEMOGRAPHICS
POPULATION
1-Mile
3-Mile
5-Mile
2025 Projection
8,992
121,831
314,501
2020 Estimate
8,546
116,006
298,313
7,981
109,734
275,052
Growth ‘20 - ‘25
5.22%
5.02%
5.43%
Growth ‘10 - ‘20
7.08%
5.72%
8.46%
1-Mile
3-Mile
5-Mile
2,268
32,793
91,306
2020 Estimate
2,152
31,178
86,641
2010 Census
1,988
29,274
80,334
Growth ‘20 - ‘25
5.39%
5.18%
5.38%
Growth ‘10 - ‘20
8.25%
6.50%
7.85%
Average Income
$42,957
$43,473
$43,830
Median Income
$34,481
$34,353
$33,087
2010 Census
HOUSEHOLDS 2025 Projection
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922 HILL RD, HOUSTON, TX 77037
FUTECH MARITIME CAPITAL PARTNERS
DISCLAIMER
The information contained in this Marketing Brochure has been obtained from sources believed to be reliable, but the accuracy or completeness of the information contained therein cannot be guaranteed. James Capital Advisors, Inc. & Brian Brockman (“Broker”) has not, and will not, verify any of this information, nor has Broker conducted, nor will it conduct, any investigation regarding these matters. Broker makes no representations, guarantees, or warranties of any nature about the accuracy or completeness of any information provided. The information provided in this brochure is in no way a substitute for a thorough due diligence investigation by Buyer. Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to income and expenses for this property nor the future financial performance of the property. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties as to the size and square footage of the property, the presence of any contaminating substances at the property, the physical condition of the property or compliance with any State, Local or Federal regulations. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to the financial condition or future financial condition of any tenants, nor any future plans or intentions of tenants with regard to the continued occupancy of the property. All parties are aware that Broker has no affirmative obligation to conduct a due diligence examination of the property for any Buyer. Any and all projections or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. Therefore, Broker assumes no legal responsibility for accuracy or completeness of this information, and expressly disclaims all representations, guarantees, or warranties related thereto. The value of the property to any Buyer depends on numerous factors that must be evaluated by Buyer and Buyer’s legal, tax, construction, and financial advisors. Buyer and Buyer’s advisors should conduct a thorough, independent investigation of the property to determine its suitability for Buyer’s intended usage. This investment, as with all real estate investments, carries a substantial risk. As such, Buyer and Buyer’s legal and financial advisors are strongly advised to request and review all legal and financial documentations related to the property and tenants. A tenant’s past performance is not a guarantee of future performance. The lease rate stated for some properties may be based on a tenant’s projected sales with little or no record of actual performance or comparable rents for the area in question. Returns are in no way guaranteed. Tenants may fail to pay the rent or property taxes or any other tenant obligations under the terms of the lease or may default under the terms of such lease. Regardless of tenant’s history of performance, and/or any lease guarantors and/or guarantees, Buyer is responsible for conducting Buyer’s own investigation of all matters related to any and all tenants and lease agreements. Broker is not, in any way, responsible for the performance of any tenant or for any breach or default by any tenant of any terms of any lease agreement related to the property. Further, Buyer is responsible for conducting Buyer’s own independent investigation of all matters related to the value of the property, including, but not limited to, the value of any long-term leases. Buyer must carefully evaluate the possibility of tenants vacating the property or breaching their leases and the likelihood and financial impact of being required to find a replacement tenant if the current tenant should default and/or abandon the property. Buyer must also evaluate Buyer’s legal ability to make alternate use of the property in the event of a tenant abandonment of the property.
CONFIDENTIALITY This Marketing Brochure and the information contained within, is propriety and strictly confidential. It is intended to be used only by the party receiving it from Broker. It should not be made available to any other person or entity without the express written consent of Broker.
RELEASE This Marketing Brochure has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless Broker from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property. In no event shall James Capital Advisors, Inc. or Broker be liable to any party for any direct, indirect, special, incidental, or consequential damages of any kind whatsoever arising out of the use of this Marketing Brochure or any information contained herein.
NON-ENDORSEMENT Broker is not affiliated with, endorsed by or sponsored in any way by any tenant or lessee identified in this Marketing Brochure. The presence of any entity’s logo or name is not intended in any way to indicate affiliation, sponsorship or endorsement by said entity of Broker.
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www.jamescapitaladvisors.com
@jamescapitaladvisors
FUTECH MARITIME CAPITAL PARTNERS
CONTACT INFORMATION LISTING AGENTS
NINA VALTCHANOV
Associate (424) 325-2624 nina@jamescapitaladvisors.com CA RE Lic. 02084952
REED MELILLO
Senior Director (424) 325-2606 reed@jamescapitaladvisors.com CA RE Lic. 01984199
MIKE JAMES
Managing Director (424) 325-2601 mike@jamescapitaladvisors.com CA RE Lic. 01936642 BROKER OF RECORD
Brian Brockman Bang Realty - Texas, Inc (513) 898-1551 brian@bangrealty.com TX RE Lic #: 701472 CORP. Lic #: 9007017
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www.jamescapitaladvisors.com
@jamescapitaladvisors