House Park Shopping Center - Elgin, TX

HOUSE PARK SHOPPING CENTER ELGIN, TX

(AUSTIN MSA)

PRICING & FINANCIAL ANALYSIS

H O U SE PAR K SH O P P ING C E NT E R

House Park Shopping Center 191-199 US-290 Elgin, TX 78621

OFFERING SUMMARY Price Cap Rate Net Operating Income Price PSF Occupancy Year Built

$1,850,000 6.33% $117,161 $91.58 90.1% 2001

Gross Leasable Area

20,200 SF

Lot Size

1.74 Acres

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

2

PRICING & FINANCIAL ANALYSIS

H O U SE PAR K SH O P P ING C E NT E R

PROJECTED INCOME & EXPENSES Base Rent - Occupied Space

CURRENT 100%

GROSS POTENTIAL RENT

PSF

EXPENSES

CURRENT

PSF

$195,780

$9.69

Real Estate Taxes

$52,566

$2.60

$195,780

$9.69

Insurance

$24,343

$1.21

$0

$0.00

Expense Reimbursements

CAM

CAM Recoveries

$15,587

$0.77

Accounting

Management Fee Recoveries

$0

$0.00

Lawn Maintenance

$3,000

$0.15

Insurance Recoveries

$0

$0.00

Repair & Maintenance

$5,300

$0.26

Real Estate Tax Recoveries

$0

$0.00

Electric

$1,000

$0.05

$15,587

$0.77

Water

$8,000

$0.40

$211,370

$10.46

Total CAM

$17,300

$0.86

$0

$0.00

$94,209

$4.66

Total Expense Reimbursements EFFECTIVE GROSS REVENUE Operating Expenses

Management Fee

Total CAM Management Fee

0.00%

$17,300

$0.86

$0

$0.00

Total Insurance

$24,343

$1.21

Total Real Estate Taxes

$52,566

$2.60

Total Recoverable Expenses

$94,209

$4.66

$117,161

$5.80

Net Operating Income

Total Expenses

0.00%

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

3

RE NT RO L L Tenant

H O U SE PAR K SH O P P ING C E NT E R Suite

SQ FT

% of SQFT

Lease Dates

Minimum Rent

Recoveries

Total

Start

End

Annual

Monthly

PSF

Annual

PSF

Revenue

% of Revenue

Iglesias Christiana Pentecostes Church

191

2,000

9.90%

-

MTM

$18,480

$1,540

$9.24

$1,713

$0.86

$20,193

9.55%

Available

193

2,000

9.90%

-

-

$0

$0

$0.00

$0

$0.00

$0

0.00%

Elgin Antique Mall

195

8,400

41.58%

-

MTM

$36,000

$3,000

$4.29

$7,194

$0.86

$43,194

20.44%

Joseph's Steakhouse

197

3,250

16.09%

01/19

01/20

$55,200

$4,600

$16.98

$2,783

$0.86

$57,983

27.43%

Harmonty Medicine Shop Pharmacy

199A

1,625

8.04%

01/19

01/23

$28,800

$2,400

$17.72

$1,392

$0.86

$30,192

14.28%

Super Donuts

199B

1,625

8.04%

01/19

12/23

$33,000

$2,750

$20.31

$1,392

$0.86

$34,392

16.27%

Rocky Road Printing

199C

650

3.22%

09/18

08/20

$12,000

$1,000

$18.46

$557

$0.86

$12,557

5.94%

Elgin Dry Cleaners

199D

650

3.22%

05/15

07/20

$12,300

$1,025

$18.92

$557

$0.86

$12,857

6.08%

Total Count/GLA

8

20,200

100%

Totals

$195,780

$16,315

$211,367

100.00%

Occupied

7

18,200

90.1%

Available

1

2,000

9.9%

$10.76

18,200

100.0%

Total Avg Rent

$15,587

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

4

ESTIMATED REIMBURSEMENT REVENUE Tenant

Suite

SQ FT

H O U SE PAR K SH O P P ING C E NT E R

% of SQFT

CAM

Management Fee

Insurance

Real Estate Taxes

Total Recovery

Monthly

PSF

Monthly

PSF

Monthly

PSF

Monthly

PSF

Monthly

PSF

Iglesias Christiana Pentecostes Church

191

2,000

9.90%

$143

$0.86

$0

$0.00

$0

$0.00

$0

$0.00

$143

$0.86

Available

193

2,000

9.90%

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

Elgin Antique Mall

195

8,400

41.58%

$600

$0.86

$0

$0.00

$0

$0.00

$0

$0.00

$600

$0.86

Joseph's Steakhouse

197

3,250

16.09%

$232

$0.86

$0

$0.00

$0

$0.00

$0

$0.00

$232

$0.86

Harmonty Medicine Shop Pharmacy

199A

1,625

8.04%

$116

$0.86

$0

$0.00

$0

$0.00

$0

$0.00

$116

$0.86

Super Donuts

199B

1,625

8.04%

$116

$0.86

$0

$0.00

$0

$0.00

$0

$0.00

$116

$0.86

Rocky Road Printing

199C

650

3.22%

$46

$0.86

$0

$0.00

$0

$0.00

$0

$0.00

$46

$0.86

Elgin Dry Cleaners

199D

650

3.22%

$46

$0.86

$0

$0.00

$0

$0.00

$0

$0.00

$46

$0.86

20,200

100%

$1,299

TOTALS

$0

$0

$0

$1,299

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

5

L E A SE PROVIS ION S

Tenant

H O U SE PAR K SH O P P ING C E NT E R

Suite

Base Rental Increases

SQ FT

Date

PSF

Iglesias Christiana Pentecostes Church

191

2,000

-

-

Available

193

2,000

-

-

Elgin Antique Mall

195

8,400

-

-

Joseph's Steakhouse

197

3,250

-

-

Harmonty Medicine Shop Pharmacy

199A

1,625

1/25/2020 1/25/2021 1/25/2022

$18.46 $19.20 $19.94

Super Donuts

199B

1,625

1/1/2020 1/1/2021 1/1/2022 1/1/2023

$20.68 $21.05 $21.42 $21.48

Rocky Road Printing

199C

650

9/1/2019

$20.31

Elgin Dry Cleaners

199D

650

-

-

TOTAL

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

6

I N VE S TMENT HI GHLI GHT S

H O U SE PAR K SH O P P ING C E NT E R

• S trong Value-Add Component: The Property is Currently 90 Percent Occupied Providing Investors with a Stable Current Cash Flow while Offering Significant Upside through the Lease Up of the Remaining Available Space.

• B elow-Market Rents: The Average Rental Rate at House Park Shopping Center is $10.61/SF Modified Gross, While Market Rent in the Immediate Trade Area is Leasing at $12/SF to $19.50/SF NNN. • G reat Visibility with High Traffic Counts: House Park Shopping Center is Situated off US-290 where Traffic Counts Exceed 24,000 Vehicles Per Day. • P riced Below Replacement Cost: House Park Shopping Center Presents a Compelling Opportunity to Acquire a Retail Asset at $91.58 Per Square Foot, which is well Below Replacement Cost.

• A ll Spaces are Highly Visible: The Property has Great Visibility from US-290, the Major Highway Running through Elgin.

PROPERTY DESCRIPTION

7

A E R I AL MA P

H O U SE PAR K SH O P P ING C E NT E R

ELGIN ELEMENTARY SCHOOL

24,000 VPD BOOKER T. WASHINGTON ELEMENTARY SCHOOL

PROPERTY DESCRIPTION

8

L E A SE COMPA RABLES

Property

H O U SE PAR K SH O P P ING C E NT E R

GLA

Yr Built/ Renovated Occupancy

Major Tenants

Available SF

Rental Rates

NNN

House Park Shopping Center ï‚« 191 US-290 Elgin, TX

20,200

2001

90.1%

Super Donuts, Elgin Antique Mall, Joseph's Steakhouse

2,000

$4.29 - $20.00

N/A

Elgin Village Shopping Center 1 910 W 11th St Elgin, TX

19,628

2005

100.0%

Payday Advance, Anytime Fitness, Pro Nails

0

$18.00 - $20.00

$6.83

Frontier Crossing 2 1342 W 290 Elgin, TX

8,000

2017

100.0%

Mattress Firm, AT&T, Fancy Nails

0

$29.00

$5.71

Graham Retail Center 3 18810 E US 290 Elgin, TX

6,132

2005

70.6%

Bob's Tavern, Hair Salon, Doc's Country Store

1,800

$17.00 - $20.00

$7.00

Commons Shopping Center 4 224 Hwy 290 E Elgin, TX

62,158

1987

100.0%

Family Dollar, Pizza Hut, Subway

0

$10.00-$13.00

$4.10

PROPERTY DESCRIPTION

9

L E A SE COMPA RABLES

H O U SE PAR K SH O P P ING C E NT E R

House Park Shopping Center 1

Elgin Village Shopping Center

2

Frontier Crossing

3

Graham Retail Center

4

Commons Shopping Center

3 2

1

4

PROPERTY DESCRIPTION

10

REG IONA L MA P

H O U SE PAR K SH O P P ING C E NT E R

House Park Shopping Center

PROPERTY DESCRIPTION

11

LO C AL MA P

H O U SE PAR K SH O P P ING C E NT E R

House Park Shopping Center

PROPERTY DESCRIPTION

12

M A R KET S U MMARY

H O U SE PAR K SH O P P ING C E NT E R

Austin, TX

OVERVIEW Austin, Texas is the capital of Texas and the seat of Travis County. Located in Central Texas, Austin is the 11th-most populous city in the United States and the fourth-most populous city in Texas.

Among cities with more than 300,000 people, Austin was the fastest-growing large city in the nation in 2018. Austin is also the second largest state capital in the United States. As of the U.S. Census Bureau’s 2017 estimate, Austin had a population of 950,715. The city is the cultural and economic center of the Austin–Round Rock metropolitan area, which had an estimated population of 2,115,827 as of July 1, 2017.

U.S. News & World Report named Austin the best place to live in the U.S. for 2017 and 2018. In 2016, Forbes ranked Austin No. 1 on its “Cities of the Future” list and, in 2017, placed the city at that same position on its list for the “Next Biggest Boom Town in the U.S.” Also in 2017, Forbes awarded the South River City neighborhood of Austin its No. 2 ranking for “Best Cities and Neighborhoods for Millennials”. WalletHub named

Austin the sixth-best place in the country to live for 2017 and the FBI ranked Austin as the secondsafest major city in the U.S. for 2012.

A number of Fortune 500 companies have headquarters or regional offices in Austin including, 3M, Amazon, Apple Inc., Cisco, eBay, General Motors, Google, IBM, Intel, Oracle Corporation, PayPal, Texas Instruments, and Whole Foods Market. Dell’s worldwide headquarters is located in a nearby suburb, Round Rock.

The city’s official slogan promotes Austin as “The Live Music Capital of the World”, a reference to the city’s many musicians and live music venues, as well as the long-running PBS TV concert series Austin City Limits. The city also adopted “Silicon Hills” as a nickname in the 1990s due to a rapid influx of technology and development companies.

In recent years, the city has also adopted the unofficial slogan “Keep Austin Weird”,which refers to the desire to protect Austin’s large number of small, unique, and local businesses.

PROPERTY DESCRIPTION

13

D E M OG RA PHIC STAT I ST I CS

H O U SE PAR K SH O P P ING C E NT E R

1 MILE

3 MILE

5 MILE

4,874 4,252 3,333 14.63% 27.57% 2,654

13,351 11,754 9,852 13.59% 19.31% 5,720

20,492 18,257 16,257 12.24% 12.30% 8,031

3,269 770 88 16 28 81 0

9,448 1,671 249 88 39 258 1

14,912 2,371 355 172 47 400 3

1,542 1,346 1,053 14.56% 27.83% 836 510 $57,812 $47,083

4,460 3,928 3,277 13.54% 19.87% 2,677 1,250 $69,247 $54,576

6,877 6,129 5,438 12.20% 12.71% 4,556 1,573 $74,288 $60,817

409 274 330 141 109 13 45 24

1,003 826 729 438 415 174 234 109

1,257 1,295 1,293 769 607 300 409 198

Population: 2023 Projection 2018 Estimate 2010 Census Growth 2018-2023 Growth 2010-2018 2018 Population Hispanic Origin

2018 Population by Race: White Black Am. Indian & Alaskan Asian Hawaiian & Pacific Island Other U.S. Armed Forces:

Households: 2023 Projection 2018 Estimate 2010 Census Growth 2018 - 2023 Growth 2010 - 2018 Owner Occupied Renter Occupied 2018 Avg Household Income (National Avg - $75,558) 2018 Med Household Income (National Avg - $53,889)

2018 Households by Household Inc: <$25,000 $25,000 - $50,000 $50,000 - $75,000 $75,000 - $100,000 $100,000 - $125,000 $125,000 - $150,000 $150,000 - $200,000 $200,000+ Demographic data © CoStar 2018

PROPERTY DESCRIPTION

14

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 tenantâ&#x20AC;&#x2122;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: ӽӽ that the owner will accept a price less than the written asking price; ӽӽ that the buyer/tenant will pay a price greater than the price submitted in a written offer; and ӽӽ 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