Austin Plaza - Spring, TX

AUSTIN PLAZA SPRING, TX

(HOUSTON MSA)

PRI C I N G & FI N A NC IA L ANALYS IS

AU ST IN P LAZ A - SP R ING, T X

Austin Plaza 4700-4750 FM 2920 Spring, TX 77388

OFFERING SUMMARY Price

$5,005,000

Cap Rate

6.63%

Proforma Cap Rate

8.00%

Net Operating Income

$331,708

Price PSF

$217.24

Occupancy

87.50%

Year Built

2003

Gross Leasable Area

23,039 SF

Lot Size

2.53 Acres

* Pro-Forma NOI is based on leasing the two vacant spaces at $17.31/SF NNN

F I N A N C I A L A N A LY S I S

2

PRI C I N G & FI N A NC IA L ANALYS IS

PROJECTED INCOME & EXPENSES Base Rent - Occupied Space GROSS POTENTIAL RENT

87.5%

AU ST IN P LAZ A - SP R ING, T X

CURRENT

PSF

$349,809

$15.18

$349,809

$15.18

Expense Reimbursements

EXPENSES

CURRENT

PSF

Real Estate Taxes

$71,064

$3.08

Insurance

$16,062

$0.70

CAM

$36,105

$1.57

$21,600

$0.94

$144,831

$6.29

Real Estate Taxes

$62,183

$2.70

Management Fee

Insurance

$14,054

$0.61

Total Expenses

CAM

$31,592

$1.37

Management Fee

$18,901

$0.82

Total Expense Reimbursements

$126,730

$5.50

GROSS POTENTIAL INCOME

$476,539

$20.68

EFFECTIVE GROSS REVENUE

$476,539

$20.68

Real Estate Taxes

($71,064)

($3.08)

Insurance

($16,062)

($0.70)

CAM

($36,105)

($1.57)

Management Fee

($21,600)

($0.94)

($144,831)

($6.29)

$331,708

$14.40

4.53%

For Financing Options, Please Contact: Greg Holley | Managing Partner High St Capital (O) 469-998-7200 | (C) 714.514.2990 gholley@highstcapital.com

Operating Expenses

Total Recoverable Expenses Net Operating Income

F I N A N C I A L A N A LY S I S

3

RE NT RO L L

Suite

AU ST IN P LAZ A - SP R ING, T X

Tenant

SQ FT

% of SQFT

Start

End

Annual Rent

PSF

Escalation Date

Escalation Amount

Options

Lease Type

4700

Andrew Garcia, DC

1466

6.36%

01/01/2015

06/30/2025

$24,922

$17.00

04/01/2023

$17.50

1x5

NNN

4704

The Tax Remedy

2386

10.36%

06/01/2010

09/30/2024

$41,755

$17.50

-

-

-

NNN

4712

Karate Masters

2426

10.53%

06/01/2014

08/31/2026

$41,242

$17.00

-

-

1x5

NNN

4716

CeCe's Hair Salon

1482

6.43%

09/01/2021

08/31/2028

$25,935

$17.50

09/01/2023

$18.00

-

NNN

4720

V's Nails

1527

6.63%

01/01/2020

12/31/2024

$26,723

$17.50

01/01/2023

$18.00

1x5

NNN

4724

Texas Vinyl Supply

1701

7.38%

03/01/2018

06/30/2023

$29,768

$17.50

07/01/2023

-

1x5

NNN

4728

Krazy Ape Vapor

1861

8.08%

07/01/2015

07/01/2023

$33,498

$18.00

-

-

-

NNN

4732

Catalyst Machineworks

1108

4.81%

02/01/2020

01/31/2023

$19,390

$17.50

-

-

-

NNN

4736

Vacant

1336

5.80%

-

-

-

-

-

-

-

-

4740

Star Foot Massage

1187

5.15%

06/01/2020

02/28/2026

$20,179

$17.00

03/01/2023

$17.50

1x5

NNN

4744

Vacant

1543

6.70%

-

-

-

-

-

-

-

-

4750

Neal's Restaurant

5015

21.77%

06/15/2016

06/30/2024

$77,835

$15.52

07/01/2023

$16.00

1x5

NNN

1

0.00%

01/01/2020

01/01/2023

$7,800

$7,800

-

-

-

-

20,160

87.50%

$349,047

$17.31

2,879

12.50%

23,039

100%

-

Sign Rent Occupied Vacant Total

*Analysis takes into consideration a 1 year hold from 7/1/2022 *Suite 4744 is temporarily being used by Neal’s Restaurant. The Landlord may take the suite back upon notice, but the construction work for a new tenant must be done in Nov/Dec/Jan.

F I N A N C I A L A N A LY S I S

4

TE NA NT INF ORMAT I ON

AU ST IN P LAZ A - SP R ING, T X

DBA

Karate Masters

Public/Private

Private

Line of Business

At Karate Masters, ther priority is to help you and/or your children become better versions of yourselves. The expert instructors are there to learn your goals, and help you achieve them in a fun, exciting, and welcoming environment.

DBA

The Tax Remedy

Public/Private

Private

Line of Business

The Tax Remedy is a second generation business that has been serving the community for over 30 years. It works with you on a personal level to determine the best solutions for your unique needs, then leverage our seasoned expertise to achieve the best possible results. The firm is large enough to offer a full range of professional services at a fair price, but small enough to give you the individual attention that you deserve.

DBA

Cece’s Hair Salon

Public/Private

Private

Line of Business

At CC The Hair Studio, located in Spring, TX, all Hair Salon Professionals are committed to offer the best hair salon experience based on the belief that customers needs are of the utmost importance.

PROPERTY DESCRIPTION

5

TE NA NT INF ORMAT I ON

AU ST IN P LAZ A - SP R ING, T X

DBA

Krazy Ape Vapor

Public/Private

Private

Locations

6 Locations in Houston

Line of Business

Krazy Ape Vapor is family owned and operated and was founded in 2013. Krazy Ape Vapor provides a full line of E-Cigarettes and Vapor supplies. Quality control is a top priority at Krazy Ape Vapor.

DBA

Catalyst Machineworks

Public/Private

Private

Line of Business

Catalyst Machineworks LLC, started in 2015 in Spring, TX. They provide professionalgrade multirotor parts, camera stabilization systems, and accessories that are designed and manufactured in the USA. Drone assembly and testing is accomplished by a team of the best drone builders in the industry.

DBA

Neal’s Restaurant

Public/Private

Private

Line of Business

The Original Neal’s Restaurant is a family-operated local restaurant in Spring, TX serving the immediate community for more than 20 years. Owned by Hector Grimaldo, they offer a large array of meaty, honest-to-goodness home-style country food at affordable prices.

From BBQ and hamburgers to custom smoked meats and chicken fried steak, count on Neal’s to give you succulent meals that are cooked according to your unique taste and preference.

PROPERTY DESCRIPTION

6

I N VE S TMENT HI GHLI GHT S

•

Value Add Retail Center with Stabilized Cash Flow - 87.5% Occupied

•

Below Market Rents – Average Rental Rate of $17.31/SF

•

The proforma NOI on Austin Plaza is $399,652.

We arrive at this number by taking the current, average rent in the property of $17.31 (which is below market) and applying that to the two vacant spaces. We assume they are NNN leases. On the proforma NOI, the return is an 8.00% cap rate.

•

NNN Leases – Providing Ease of Management

•

New TPO Roof – Strong Pride of Ownership

•

Close Proximity to HEB – Less than 0.5 Miles down FM 2920

•

Strong Visibility and Easy Access with Two Ingress/ Egress Points

•

Average Household Income Exceeds $119,000 in a 3-Mile Radius

•

Densely Populated Trade Area with Over 225,000 Residents in a 5-mile radius

•

National Retailers in the Immediate Area Include: HEB, Walmart Supercenter, Kroger, Lowe’s Home Improvement, Sprouts Farmers Market, McDonalds, Starbucks, Raising Cane’s, Bank of America, Walgreens, and Many More

AU ST IN P LAZ A - SP R ING, T X

PROPERTY DESCRIPTION

7

AU ST IN P LAZ A - SP R ING, T X S I T E PL A N

Andrew Garcia, DC

CC’s Hair Salon

V’s Nails Texas Vinyl Supply Karazy Ape Vapor Catalyst Machineworks

Vacant Star Foot Massage

Vacant

FM 2920

8 PROPERTY DESCRIPTION

A E R I AL MA P

AU ST IN P LAZ A - SP R ING, T X

FOX ELEMENTARY SCHOOL

34,501 VPD

FM 2920

MARKET OVERVIEW

9

LO C AL MA P

AU ST IN P LAZ A - SP R ING, T X

MARKET OVERVIEW

10

REG IONA L MA P

AU ST IN P LAZ A - SP R ING, T X

MARKET OVERVIEW

11

M A R KET S U MMARY

AU ST IN P LAZ A - SP R ING, T X

Houston, TX

OVERVIEW Houston is the most populous city in the state of Texas and the fourth-most populous city in the United States, with an estimated 2019 population of 2,320,268. The seat of Harris County, Houston is the principal city of the Greater Houston metropolitan area, which is the fifth most populous MSA in the United States (2019 population estimate of 7,066,141).

With a total area of over 637 square miles, Houston is the eighth most expansive city in the United States.

Houston is recognized worldwide for its energy industry (particularly for oil and natural gas) as well as for biomedical research and aeronautics. It is also leading in health care sectors and building oilfield equipment; only New York City is home to more Fortune 500 headquarters. The Port of Houston ranks first in the United States in international waterborne tonnage handled and second in total cargo tonnage handled.

Houston was founded in 1836 on land near the banks of Buffalo Bayou (now known as Allen’s Landing) and incorporated as a city on June 5, 1837. The city was named after former General Sam Houston, who was president of the Republic of Texas and had commanded and won at the Battle of San Jacinto 25 miles (40 km) east of where the city was established.

The burgeoning port and railroad industry, combined with oil discovery in 1901, has induced continual surges in the city’s population. In the mid-twentieth century, Houston became the home of the Texas Medical Center — the world’s largest concentration of healthcare and research institutions — and NASA’s Johnson Space Center, where the Mission Control Center is located.

Nicknamed the Space City, Houston is a global city, with strengths in business, international trade, entertainment, culture, media, fashion, science, sports, technology, education, medicine and research.

The city has a population from various ethnic and religious backgrounds and a large and growing international community. Houston is considered to be the most diverse city in Texas and the United States. It is home to many cultural institutions and exhibits, which attract more than 7 million visitors a year to the Museum District. Houston has an active visual and performing arts scene in the Theater District and offers year-round resident companies in all major performing arts.

Q U I C K S TAT S

1 2nd No. 3 4th 22 st

Most-Populous City in the State of Texas

Second-Best U.S. Cities for Job Growth (CBS News)

Third-Best American City of the Future (Financial Times)

Most-Populous City in the United States

Fortune 500 Companies Call Houston Home (Fortune) MARKET OVERVIEW

12

D E M OG RA PHIC STAT I ST I CS

AU ST IN P LAZ A - SP R ING, T X

1 Mile

3 Mile

5 Mile

Population

1 Mile

3 Mile

5 Mile

Households:

2010 Population

8,476

59,772

170,889

2010 Households

2,783

19,832

60,554

2020 Population

10,688

81,531

225,724

2020 Households

3,560

27,441

80,615

2025 Population Projection

11,094

85,481

237,310

2025 Household Projection

3,702

28,825

84,948

Annual Growth 2010-2020

2.40%

3.30%

2.90%

Annual Growth 2010-2020

2.70%

3.60%

3.00%

Annual Growth 2020-2025

0.80%

1.00%

1.00%

Annual Growth 2020-2025

0.80%

1.00%

1.10%

Median Age

34.4

35.6

35.9

Owner Occupied

3,138

24,653

61,838

Bachelor's Degree or Higher

31%

38%

39%

Renter Occupied

564

4,172

23,110

2

38

106

Avg Household Size

3

3

2.8

Avg Household Vehicles

2

2

2

$125.9M

$1.1B

$3B

Avg Household Income

$93,940

$119,672

$115,648

Median Household Income

$82,478

$94,522

$88,706

< $25,000

338

1,801

7,461

U.S. Armed Forces

Population by Race

Total Consumer Spending

White

8,483

63,466

169,480

Black

1,113

8,044

30,645

94

552

1,473

740

7,302

18,234

19

119

322

Two or More Races

239

2,048

5,570

$25,000 - 50,000

550

3,795

13,339

Hispanic Origin

3,110

21,365

55,825

$50,000 - 75,000

654

4,699

13,508

$75,000 - 100,000

794

4,386

10,943

American Indian/Alaskan Native Asian Hawaiian & Pacific Islander

Housing Median Home Value Median Year Built

Demographic data © CoStar 2021

Income

$193,817

$240,431

$252,236

$100,000 - 125,000

370

3,226

8,799

1997

2002

1999

$125,000 - 150,000

427

2,798

6,401

$150,000 - 200,000

243

2,921

8,880

$200,000+

183

3,814

11,284

MARKET OVERVIEW

13

CONFIDENTIALITY AGREEMENT The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from STRIVE and it should not be made available to any other person or entity without the written consent of STRIVE. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to STRIVE. This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. STRIVE has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, STRIVE has not verified, and will not verify, any of the information contained herein, nor has STRIVE conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT STRIVE AGENT FOR MORE DETAILS.

Commercial Disclaimer STRIVE hereby advises all prospective purchasers of commercial property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, STRIVE has not and will not verify any of this information, nor has STRIVE conducted any investigation regarding these matters. STRIVE makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a commercial property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. STRIVE expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a commercial property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any commercial property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenants and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenants history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term leases, including the likelihood of locating replacement tenants if any of the current tenants should default or abandon the property, and the lease terms that Buyer may be able to negotiate with any potential replacement tenants considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release STRIVE and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this commercial property.

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 th e 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: ӽ that the owner will accept a price less than the written asking price; ӽ that the buyer/tenant will pay a price greater than the price submitted in a written offer; and ӽ 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.

Regulated by the Texas Real Estate Commission

Information available at www.trec.texas.gov IABS 1-0

exclusively listed 469.844.8880

STRIVERE.COM