Lubbock Commons - Lubbock, TX

LUBBOCK COMMONS LUBBOCK, TX

PRICING & FINANCIAL ANALYSIS

LU B B O C K CO M M O NS

Lubbock Commons 5402 4th St Lubbock, TX 79416

OFFERING SUMMARY Price Cap Rate Net Operating Income Price PSF Occupancy Year Built Gross Leasable Area Lot Size

$3,750,000 8.20% $307,536 $45.60 76.2% 1986 82,233 SF 7.37 Acres

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

2

PRICING & FINANCIAL ANALYSIS

LU B B O C K CO M M O NS

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

CURRENT 100%

PSF

EXPENSES

$328,512

$3.99

Real Estate Taxes

$328,512

$3.99

Insurance

CURRENT

PSF

$59,726

$0.73

$7,719

$0.09

CAM

Expense Reimbursements $15,822

$0.19

Janitorial

$244

$0.00

$0

$0.00

Sweeping

$758

$0.01

$5,884

$0.07

Landscaping

$1,180

$0.01

Real Estate Tax Recoveries

$45,525

$0.55

Plumbing

$200

$0.00

Total Expense Reimbursements

$67,231

$0.82

Electricity

$5,880

$0.07

$395,740

$4.81

Water & Sewer

$8,972

$0.11

Waste Disposal

$2,760

$0.03

Fire Inspection/Repairs

$600

$0.01

$20,758

$0.25

Telephone/Fax/Cable/Internet

$165

$0.00

$0

$0.00

Total CAM

$20,758

$0.25

$7,719

$0.09

Management Fee

$0

$0.00

Total Real Estate Taxes

$59,726

$0.73

Total Expenses

$88,204

$1.07

Total Recoverable Expenses

$88,204

$1.07

$307,536

$3.74

CAM Recoveries Management Fee Recoveries Insurance Recoveries

EFFECTIVE GROSS REVENUE Operating Expenses Total Common Area Maintenance Management Fee Total Insurance

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 Tenant

LU B B O C K CO M M O NS Suite

SQ FT

% of SQFT

Lease Dates

Minimum Rent

Recoveries

Total

Start

End

Annual

Monthly

PSF

Annual

PSF

Revenue

% of Revenue

Big Lots

A

35,895

43.65%

05/02

04/21

$152,556

$12,713

$4.25

$38,501

$1.07

$191,057

48.28%

Charlie B's

B

26,785

32.57%

09/15

01/26

$141,960

$11,830

$5.30

$28,730

$1.07

$170,690

43.13%

Available

C

19,553

23.78%

-

-

$0

$0

$0.00

$0

$0.00

$0

0.00%

Billboard

0

0.00%

04/16

03/26

$21,996

$1,833

$0.00

$0

$0.00

$21,996

5.56%

Charlie B’s Garden Area

-

0

0.00%

09/15

01/26

$12,000

$1,000

$0.00

$0

$0.00

$12,000

3.03%

Total Count/GLA

5

82,233

100%

Totals

$328,512

$27,376

$395,744

100%

Occupied

4

62,680

76.2%

Available

1

19,553

23.8%

$5.05

62,680

100.0%

Lamar Companies Billboard

Total Avg Rent

$67,231

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

4

ESTIMATED REIMBURSEMENT REVENUE Tenant

Suite

SQ FT

LU B B O C K CO M M O NS

% of SQFT

CAM

Management Fee

Insurance

Real Estate Taxes

Total Recovery

Monthly

PSF

Monthly

PSF

Monthly

PSF

Monthly

PSF

Monthly

PSF

Big Lots

A

35,895

43.65%

$755

$0.25

$0

$0.00

$281

$0.09

$2,173

$0.73

$3,208

$1.07

Charlie B's

B

26,785

32.57%

$563

$0.25

$0

$0.00

$210

$0.09

$1,621

$0.73

$2,394

$1.07

Available

C

19,553

23.78%

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

Billboard

0

0.00%

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

-

0

0.00%

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

82,233

100%

$1,319

Lamar Companies Billboard Charlie B’s Garden Area TOTALS

$0

$490

$3,794

$5,603

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

5

LEASE PROVISIONS Tenant

LU B B O C K CO M M O NS

Suite

SQ FT

Base Rental Increases

User Restrictions & Exclusive Rights

Renewal Options

Date

PSF

Options

Date

PSF

Big Lots

A

35,895

-

-

2x5

5/1/2021 5/1/2026

$4.75 $5.25

-

Charlie B's

B

26,785

9/1/2018 9/1/2019 9/1/2020 9/1/2021 9/1/2022 9/1/2023 9/1/2024

$5.30 $5.46 $5.62 $5.79 $5.96 $6.14 $6.33

2x5

9/1/2025 9/1/2026 9/1/2027 9/1/2028 9/1/2029 9/1/2030 9/1/2031 9/1/2032 9/1/2033 9/1/2034

$6.52 $6.72 $6.92 $7.12 $7.34 $7.56 $7.79 $8.02 $8.26 $8.51

Landlord shall not lease space to any other tenants at the Shopping Center for the Permitted Use, or amend any existing lease with any other tenant permitting that tenant to operate a business substantially similar to Tenant's business.

Available

C

19,553

-

-

-

-

-

-

Billboard

0

-

-

-

-

-

-

Lamar Companies Billboard TOTAL

82,233

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

6

TE NA NT INF ORMAT I ON

LU B B O C K CO M M O NS

Entity on Lease

Big Lots

Corporate/Franchise Corporate Locations More than 1,400 stores in 48 states Credit Rating S&P: BBB Public/Private

NYSE: BIG

Line of Business

Big Lots, Inc. is an American retail company and is a Fortune 500 retail corporation headquartered in Columbus, Ohio. Its department stores sell a wide variety of merchandise, including packaged food and beverages, toys, furniture, clothing, housewares, and small electronics, much of which is closed out or overstocked merchandise.

Entity on Lease

The Lamar Companies

Corporate/Franchise Corporate Locations More than 348,000 displaces Credit Rating Not Rated Public/Private

NASDAQ: LAMR

Line of Business

Founded in 1902, Lamar Advertising Company (Nasdaq: LAMR) is one of the largest outdoor advertising companies in the world, with more than 348,000 displays across the United States and Canada. Lamar offers advertisers a variety of billboard, interstate logo, transit and airport advertising formats, helping both local businesses and national brands reach broad audiences every day. Lamar is proud to offer its customers the largest network of digital billboards in the United States with over 2,900 displays.

PROPERTY DESCRIPTION

7

I N VE S TMENT HI GHLI GHT S

LU B B O C K CO M M O NS

• Value Add Shopping Center: Lubbock Commons is only 76% occupied. There is one available space that is almost 20,000 square feet with great visibility in the middle of the property • Low Price PSF: $45.60 - well below replacement cost • College Town: Located within 2 miles of Texas Tech University that is home to over 36,000 students. Texas Tech has seven consecutive years of record enrollment and is a major university in Texas • High Regional Population: Lubbock boasts a regional population base of over 639,000 people - Lubbock is the 11th largest city in Texas • Surrounding National Retailers: Walmart, United Supermarkets, Walgreens, Dollar General, Burger King, McDonald’s, Wells Fargo, Starbucks and many others are all located in the immediate area around the Property • High Traffic Area: Traffic counts along 4th St exceed 26,000 vehicles per day and “The Loop” (Loop 289) has over 63,000 vehicles per day.

Additionally, Slide Road has 19,000 vehicles per day • Lubbock, TX: Lubbock is the only city in the nation with a comprehensive university, a health sciences center, an agriculture school and a law school in one location. This makes Texas Tech University the second largest contiguous university campus in the United States • Billboard Lease: Recently executed 10 billboard lease provides additional income

year

PROPERTY DESCRIPTION

8

S I T E PL A N

LU B B O C K CO M M O NS

(working)

PROPERTY DESCRIPTION

9

A E R I AL MA P

SLIDE RD

LU B B O C K CO M M O NS

0 ,0 3 6

0

D VP

4TH STREET

X TE

AS

28

9

LO

O

26,228 VPD

P

MACKENZIE MIDDLE SCHOOL

HARDWICK ELEMENTARY SCHOOL

RUSH ELEMENTARY SCHOOL

PROPERTY DESCRIPTION

10

LO C AL MA P

LU B B O C K CO M M O NS

Lubbock Commons

PROPERTY DESCRIPTION

11

REG IONA L MA P

LU B B O C K CO M M O NS

Lubbock Commons

PROPERTY DESCRIPTION

12

M A R KET S U MMARY

LU B B O C K CO M M O NS

Lubbock, TX

OVERVIEW Lubbock is the county seat of Lubbock County, Texas.

The city is located in the northwestern part of the state, a region known historically and geographically as the Llano Estacado and ecologically is part of the southern end of the Western High Plains. Lubbock has three universities: Lubbock Christian University, Texas Tech University, and Texas Tech University Health Sciences Center. According to a 2013 Census estimate, Lubbock had a population of 239,538, making it the 84th most populous city in the United States of America and the 11th most populous city in the state of Texas. The city is the economic center of the Lubbock metropolitan area, which had an estimated 2013 population of 301,038.

Lubbock’s nickname, “Hub City”, derives from it being the economic, education, and health care hub of the multicounty region, north of the Permian Basin and south of the Texas Panhandle, commonly called the South Plains. The area is the largest contiguous cottongrowing region in the world and is heavily dependent on water drawn from the Ogallala Aquifer for irrigation.

Lubbock was selected as the 12th best place to start

a small business by CNNMoney.com. CNN mentioned the city’s traditional business atmosphere: low rent for commercial space, central location, cooperative city government. Lubbock High School has been recognized for three consecutive years by Newsweek as one of the top high schools in the United States. Lubbock High School is home to the only international baccalaureate (IB) program in the region. The IB program is one of the criteria examined by Newsweek in formulating their list of top high schools.

The Lubbock area is the largest contiguous cottongrowing region in the world and is heavily dependent on federal government agricultural subsidies and irrigation water drawn from the Ogallala Aquifer. However, the aquifer is being depleted at an unsustainable rate in the long term. Much progress has been made in the area of water conservation, and new technologies, such as low-energy precision application (LEPA) irrigation were originally developed in the Lubbock area. The new pipeline from Lake Alan Henry is expected to supply up to 3.2 billion US gallons (12,000,000 m3) of water per year.

PROPERTY DESCRIPTION

13

D E M OG RA PHIC STAT I ST I CS

LU B B O C K CO M M O NS

1 MILE

3 MILE

5 MILE

13,673 13,056 13,141 4.73% -0.65% 3,646

82,897 78,484 73,894 5.62% 6.21% 28,304

176,079 166,265 153,986 5.90% 7.97% 59,620

11,421 854 115 398 5 264 3

67,675 5,336 945 2,834 119 1,575 26

145,102 11,057 1,985 4,731 266 3,124 37

5,568 5,323 5,393 4.60% -1.30% 2,659 2,664 $63,821 $44,485

32,074 30,308 28,616 5.83% 5.91% 14,381 15,927 $60,657 $44,227

68,536 64,599 60,032 6.09% 7.61% 30,938 33,661 $61,329 $44,426

1,271 1,811 964 499 148 247 126 259

7,703 9,538 5,818 3,154 1,205 1,028 743 1,119

17,529 18,997 11,480 6,655 3,223 2,370 2,130 2,217

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 2018 Med Household Income

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