Available 2016 Now Pre-Leasing
PORT CAMERON Public/Private Port in Cameron, Louisiana Prepared by: Matt Redd CCIM, SIOR Ty Gose, CCIM Tony DeMarco, SIOR
Jim Barse, SIOR Lars Pederson Patrick Egan, CRE
TABLE OF CONTENTS Pre-Leasing
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Executive Summary
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Executive Summary
Matt Redd, CCIM, SIOR 337.310.7333 mattredd@latterblum.com
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225.295.0800 ty@latterblum.com
Tony DeMarco, SIOR
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504.340.9339 jbarse@latterblum.com
504.569.9327 pegan@latterblum.com
Market Analysis
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Southwest LA Market Overview Market Trends Petrochemical Projects Expansion & Development Map
Jim Barse, SIOR
Patrick Egan, CRE
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Metro Map Distance Map OCS Platform Map OCS Pipeline Map Overall Site Plan Phase 1-4 Layouts Aerial
Ty Gose, CCIM
225.297.7474 tdemarco@latterblum.com
Property Description
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Legal Information ____________________________________ 20 Sample LOI
Lars Pedersen 504.569.9355 lpedersen@latterblum.com
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EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
Executive Summary The Offering – NAI/Latter & Blum, as exclusive Broker to the Owner, is pleased to present the opportunity to pre-lease space in Port Cameron (the “Property”), a proposed private deep water staging port to be located on about 500 acres on the Calcasieu Ship Channel in Cameron parish just below the City of Lake Charles. Port Cameron strives to develop and promote shore based, supplies, services, cargo, and other oil and gas service facilities in Southwest Louisiana by establishing a sea port terminal along the Louisiana Gulf Coast. The goal of this shore based staging compound is to support and service oil and natural gas exploration, production, conversion, and exportation, as well as providing economic impact to Southwest Louisiana The Strategic Location – Port Cameron’s shore based staging compound will be located on approximately 500 acres just north of LA Highway 27/82, near the Calcasieu Ship Channel in Cameron Parish, Louisiana. Specifically located in Sections 25 and 36 of Township 14S Range 10 West of (29.811123, -93.339687). Convenient access to I-10 is provided by north/south highways to the east of the site. The Property is located with a one hour drive time from Interstate 10, in the city of Cameron, LA and is situated on the Calcasieu River Ship Channel, which is located only 3 miles from the Gulf of Mexico and 19 miles from Intracoastal Canal. In addition, tenants will have easy access to safe harbor 25 miles inland.
The Amenities – Surrounded on three sides by water, this port would have 20,500 linear feet of bulkhead to offer to clients. It features a 45’ maintained and dredged shipping lane that runs from the Port Cameron marine waterfront inland property and continues 25 miles into the Gulf of Mexico. It will feature 289 acres of lay-down yard, and water and sewage will be available on site. Channels are planned to be a minimum of 500’ wide with a 35’ draft. Channel depth excavation is planned to -33’ NAVD 88. Port Cameron will charge no port fees.
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EXECUTIVE SUMMARY
Executive Summary The Infrastructure – Port Cameron will have approximately 20,500 linear feet of bulkhead sites located on 44 leasable lots with an average bulkhead frontage of 400 linear feet. 16 other lots are located within the port for businesses not needing bulkhead frontage. Average lot sizes are 400’ wide by 500’ deep. Preliminary bulkhead system includes I-beam braced steel sheet pile walls with a tie-back anchorage system. Mooring bollards will be provided along the sheet pile wall. A continuous mooring pipe will also be located on the water side of the wall. Seven, 70 feet wide by 250 feet long concrete docking slips are planned, providing covered loading/unloading opportunities with access to public roads. Approximately 10 acres of leasable area with approximately 1,700 linear feet of bulkhead will be dedicated as a “Heavy Lift Area.” Channel widths vary from 500 feet wide to 700 feet wide. The port will have a maintained dredged depth of -33 feet. Approximately 25,000 linear feet of all-weather roads and two new pile supported concrete bridges will be constructed to provide egress and ingress to Port Cameron. Roads will be two lanes, consisting of 12’ travel lanes in each direction with 4’ shoulders and appropriate turning radii for truck traffic. Swale ditch drainage and overhead lighting will be provided alongside of roadways.
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EXECUTIVE SUMMARY
Executive Summary The Utilities – Three phase power will be provided by the local power company, Jefferson Davis Electrical Co-Op. Power will be located alongside the access roads as well as near the ports bulkhead. Potable water and fire water will be provided by Cameron Parish Waterworks District No. 1. High volume potable and fire water mains will be made available alongside the access roads as well as near the Ports bulkhead. Domestic sewer services will be provided by Cameron Parish. Gravity sewer mains will be available alongside the access road fronting each lot.
Communication services (telephone, cable, and internet) will be provided by Cameron Telephone Company (CamTel) or Bellsouth. Natural Gas services will be provided by Entex. Natural Gas mains will be available alongside the access road fronting each lot.
The Security – Port Cameron will be a fully secured facility and under the jurisdiction of Cameron Parish Police. Any vehicle or personnel entering the port boundaries will first be cleared by Port Security. Boundaries of the Port will be protected using a high security fencing system.
The Opportunity – Port Cameron represents a tremendous opportunity to position your business in the middle of a corridor currently under redevelopment.
A sample Letter of Intent is attached. Offering a 3% cooperating broker fee.
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EXECUTIVE SUMMARY
TERMS Offering Procedure Owner and NAI/Latter & Blum will assess the qualifications of any party submitting a non-binding letter of intent in accordance with Owner’s objectives. In making this assessment, consideration will be given to a number of factors, including, but not limited to price, timing of closing, and the perceived ability of the investor to complete the transaction. Guided Property Tours Property inspections will be made by appointment only and arranged through NAI/Latter & Blum. Inquiries should be directed to:
Matt Redd 337.310.7333 mattredd@latterblum.com
LEASE RATES PER ANNUM
Per Linear Foot of Waterfront
$34.74
Per Foot of Improved Bulkhead & Mooring Zone
$5,800
Interest Rate on Improvement Rental
8-10%
Letter of Intent Offers should be submitted in the form of a non-binding letter of intent and should specify the following:
- Study Period (if any) - Contingencies (if any) - Owner Financing Terms (If Any)
- Consents and/or Approvals Needed (if any) - References
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PROPERTY DESCRIPTION
PROPERTY DESCRIPTION
Strategic Location Strategic Location – Cameron Parish is located in the southwest corner of Louisiana, just south of Lake Charles. It is bordered by the Gulf of Mexico , Sabine Lake, Calcasieu Parish, Jefferson Davis Parish, and Vermilion Parish. Cameron Parish is the largest geographic parish in Louisiana with 1,313 square miles of land and 619 square miles of water. Located approximately 185 miles east of Huston and 235 miles west of New Orleans, Cameron is centrally located between two major ports in the United States
Sulphur/I-10 50 Miles Lake Charles/I-10 50 Miles Houston 185 Miles
New Orleans 235 Miles
Shallow and Deep Water Drilling
25 Mile Shipping Lane
CLICK FOR MILEAGE MAP
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PROPERTY DESCRIPTION
Strategic Location
PORT CAMERON
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PROPERTY DESCRIPTION
Strategic Location
PORT CAMERON
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PROPERTY DESCRIPTION
CHANGE ADDRESS - Will
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PROPERTY DESCRIPTION
PROPERTY DESCRIPTION
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MARKET ANALYSIS
MARKET ANALYSIS
GREATER LAKE CHARLES MARKET ANALYSIS OVERVIEW Located in the far southwestern corner of Louisiana, the Lake Charles MSA is composed of two parishes, Calcasieu and Cameron. This MSA is dominated by three industries – Petrochemical, Gambling, and Aircraft Repair. PETROCHEMICAL INDUSTRY – This phrase handily combines two closely related industries – chemicals and refining. The Lake Area Industrial Alliance reports that Calcasieu Parish was home to 20 different chemical plants and two refineries. Total employment in these facilities was 6,764 direct employees and 4,273contractors in 2012 according to the LAIA. Like the Baton Rouge area, this huge capital-intensive petrochemical complex supports a very large industrial construction industry. GAMBLING INDUSTRY – Pre-Hurricane Rita, Lake Charles was home to five riverboat casinos. Now, there are two in operation and one large one under construction, plus the Delta Downs Racetrack. The largest operational casino is L’Auberge du Lac, which opened in the summer of 2005. With the closest gambling establishments to the Houston metroplex, Lake Charles’ riverboat casinos were an instant success when they opened in the mid-1990’s AIRCRAFT REPAIR – There are now two significant employers located at Chennault Industrial Airpark – Northrop Grumman and AAR (formerly Aeroframe Services). Changes in tenants ant Chennault have had a major impact on the MSA’s employment pattern over time. Closely allied with the aircraft industry, two significant employers at Lake Charles Regional Airport are Era Helicopters with 750 employees and PHI – another helicopter service firm. A relatively new firm – CB&I Modular Solutions (formerly Shaw) – has about 1,000 workers whose main focus to date has been manufacturing modular equipment for the nuclear power industry.
“We have run out of adjectives to describe the industrial boom underway in the Lake Charles MSA. We have tabulated a remarkable $81.7 billion in industrial announcements for the two parish region. Of that Thirty Four (34) Buildings total, $30.2 billion are already underway – a figure 7-10 times largest than we would typically report for 91.24% Occupancy the whole state in the past. One estimate has the need for construction works rising by 4,000 in the next 12 months just for the projects that are underway. In addition, the new Golden Nugget Casino will open this December, generating 1,500 new jobs for the region. We project the MSA will add another 12,000 jobs over the next two years – an increase of 12% - making it by far the fastest growing MSA in Louisiana. We also expect the Lake Charles MSA to break through the 100,000 non-farm jobs barrier in 2015.” -Loren Scott, The Economic Outlet, 2015 & 2016
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MARKET ANALYSIS
“THE REAL BOOM BEGINS” “As Lake Charles entered 2014, we began to see the first evidence of a massive boom in this corner of the state unlike any we have ever seen before. By mid-year 2014 we had tabulated almost 81.7 billion in announced industrial projects for the MSA. We have been monitoring the state’s economy for four decades and this figure exceeds the best year of announcements for the whole state by a factor of at least 10. Of this total, we estimate that $30.2 billion of these projects are already underway and approximately $51.5 billion One result of this largess has been a pronounced elevation in the region’s employment growth rate. Based on data for the first seven months of the year, we estimate employment in the Lake Charles MSA will grow by an impressive 3.5% overall in 2014 – the fastest rate in the state and 3 ½ times the rate we have estimated for the state as a whole. There is a very good chance that we have under-estimated Lake Charles’ growth rate, because its employment growth rate in July was 4.1%, buttressed by a remarkable 25.2% increase in construction employment. In July, this MSA was growing four times faster than the state as a whole. It was also in 2014 that Lake Charles moved past its old 2008 employment peak and began to set new employment records.” -Loren Scott, The Louisiana Economic Outlet, 2015&2-016
Economic Development – The state of Louisiana is experiencing an influx of committed capital to industrial projects. At the state level, there is $103.3 billion in announced projects, and within the Lake Charles area there is a total of $81.7 billion of announced projects, and this large number of projects also brings a boom in jobs. Altogether, the state of Louisiana has more than $83 billion in scheduled industrial projects.
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MARKET ANALYSIS
PETROCHECMICAL PROJECTS SOUTHWEST LOUISIANA INDUSTRIAL PROJECTS Project Owner Company Name
Project
Location
Capital
Axiall & Lotte Benteler Steel BioNitrogen Bluegrass Pipeline Boise Inc. Cameron LNG (Sempra) Cheniere Energy Inc. Drax Biomass El Dorado Chem G2X International Paper Juniper GTL LC LNG (Trunkline) Leucadia Linde Magnolia LNG NRG Reagency Energy Sasol & Ineos Sasol SoCalifTel & Energy Sundrop Fuels Transco PL Venture Global Westlake Chemical
Ethylene Unit Steel Mill & Production Mill Ag Waste to Fertilizer Conversion Pipeline from Ohio to Louisiana Paper Machine Upgrade LA Export Project LNG Export Terminal Wood Pellet Plant Nitric Acid Unit & Concentrator Gas to Liquids Modernization SMR to GTL Conversion Facility LNG Exports Gasification Plan Air Separation Unit Natural Gas Liquefaction Natural Gas Conversion Expanding LA Oilfield Collection System HDPE Unit Ethylene Project LNG Export Facility Fuels/Biofuel Expanding PL system LNG Export Facility Ethylene Expansion
Westlake Caddo Parish Lettsworth
$3,000,000,000 $900,000,000 $1,250,000,000
Deridder Hackberry Sabine Pass
$111,000,000
Lake Charles Bogalusa Westlake Lake Charles SW Arkansas Lake Charles
Westlake Westlake Cameron Parish Rapides
$6,000,000,000 $120,000,000 $120,000,000 $1,300,000,000 $44,000,000 $100,000,000 $2,500,000,000 $2,200,000,000
$9,000,000,000 $2,500,000,000 $450,000,000 $300,000,000
Cameron Parish Sulphur
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