Morgan's Plaza - Nederland, TX

MORGAN’S PLAZA NEDERLAND, TX (BEAUMONT MSA)

U.S. HWY 69

FM 365

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

M O R G AN’ S P LAZ A

Morgan’s Plaza 3316 FM 365 Nederland, TX 77627

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

$1,775,000 8.00% $141,869 $138.24 100.00% 2006 12,840 SF 1.1 Acres

NOT A PART

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

M O R G AN’ S P LAZ A

CURRENT

PSF

$194,360

$15.14

GROSS POTENTIAL INCOME

$194,360

$15.14

EFFECTIVE GROSS REVENUE

$194,360

$15.14

Real Estate Taxes

($27,706)

($2.16)

Insurance

($9,700)

($0.76)

CAM

($9,244)

($0.72)

Management Fee

($5,840)

($0.45)

($52,490)

($4.09)

$141,870

$11.05

CURRENT

PSF

Real Estate Taxes

$27,706

$2.16

Insurance

$9,700

$0.76

Utilities

$1,800

$0.14

Lawn Service

$2,400

$0.19

Trash

$2,544

$0.20

Repairs

$2,500

$0.19

Total CAM

$9,244

$0.72

Management Fee

$5,840

$0.45

$52,490

$4.09

Base Rent - Occupied Space

Operating Expenses

Total Recoverable Expenses Net Operating Income

EXPENSES

CAM

Total Expenses

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

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

3

RE NT RO L L

Suite

M O R G AN’ S P LAZ A

Tenant

SQ FT

% of SQFT

Start

End

Annual Rent

PSF

Escalation Date

Escalation Amount

Options

Lease Type

3314

La Vie Salon

1540

11.99%

8/21/2018

8/21/2023

$21,560

$14.00

-

-

-

Gross

3316

Mollies Boutique

2500

19.47%

5/1/2015

4/10/2028

$30,000

$12.00

4/11/2028

$13.20

1x7

Gross

3318

UPS

2000

15.58%

9/1/2019

9/1/2022

$22,800

$11.40

-

-

-

Gross

3320

Zen Spa

3800

29.60%

1/1/2016

1/31/2026

$90,000

$23.68

2/1/2026

$26.05

1x10

Gross

3322

CDL Fitness

3000

23.36%

8/1/2016

8/1/2026

$30,000

$10.00

-

-

-

Gross

12,840

100.00%

$194,360

$15.14

0

0.00%

12,840

100.00%

Occupied Vacant Total

NOT A PART

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

4

TE NA NT INF ORMAT I ON

M O R G AN’ S P LAZ A

Tenant

The UPS Store

Corporate/Franchise

Franchise

Locations

5,000+ Locations

Public/Private

Public, Subsidiary of United Parcel Service [NYSE: UPS]

Line of Business

The UPS Store network is the world’s largest franchisor of retail shipping, postal, printing and business service centers. Started in 1980 as The Mail Boxes Etc., UPS acquired the company and introduced The UPS Store brand in 2003. Today, there are more than 5,000 independently owned The UPS Store locations in the United State, Puerto Rico and Canada.

The UPS Store, Inc., franchisor of The UPS Store brand, is a wholly owned subsidiary of United Parcel Service (UPS).

Tenant

Mollie’s Boutique

Corporate/Franchise

Corporate

Locations

1 Location

Public/Private

Private

Line of Business

Mollie’s Boutique is a women’s clothing store that offers clothing, jewelry and accessories that reflect the latest style and fashion trends while maintaining affordable prices.

Tenant

CDL Fitness

Corporate/Franchise

Corporate

Locations

1 Location

Public/Private

Private

Line of Business

CDL Fitness is a neighborhood gym that aims to help patrons achieve optimum health in an affordable atmosphere. CDL Fitness offers a small, accessible facility that is open 24/7 for member. Additionally, CDL Fitness provides Personal Trainers, Extensive Free Weight Training and Bodybuilding Instruction to clients at a low monthly cost without a contract.

PROPERTY DESCRIPTION

5

I N VE S TMENT HI GHLI GHT S

• 100% Occupied Shopping Center Situated Along the Heavily Trafficked Highways of Farm to Market 365 & U.S. Route 287.

M O R G AN’ S P LAZ A

SNAPSHOT

• S taggered Lease Turnover with Healthy Term Remaining for All Tenants.

Significant Upside in Converting Leases to NNN when They Expire • T enant Mix Caters Well to Surrounding Neighborhood Demographics — The Property’s Tenant Line-Up Includes a UPS Store, Nail Salon, Gym, Hair Salon and Boutique

29,343

$86,629

Estimated Vehicle Per Day

Average Household Income

• Other Nearby Surrounding Retailers Include Walmart Supercenter, Lowe’s, Office Depot, Ross Dress for Less, Best Buy, Dollar Tree, Petco, CVS Pharmacy, Walgreens, Starbucks, Papa John’s, Texas Roadhouse, Wendy’s, KFC and Many, Many More

5.91%

78,923

• A verage Household Income in a 3-Mile Radius Exceeds $86,000 — Almost $10,000 Higher than the National Average

Population Growth 2010-2020

Population: 5 Mile Radius

• S ituated Directly Across the Street from Central Mall, a 705,000 SF Shopping Mall that Includes Tenants like Target, JCPenney, Dillard’s, TJ Maxx, B&B Theatres and Many More • Strong Surrounding Tenancy — Raising Cane’s Recently Opened a New Location Directly West of Morgan’s Plaza

PROPERTY DESCRIPTION

6

S I T E PL A N

M O R G AN’ S P LAZ A

HILL TERRACE DR

La Vie Salon

FM 365

CDL Fitness

NOT A PART

Mollies Boutique

The UPS Store

Zen Spa

PROPERTY DESCRIPTION

7

A E R I AL MA P

M O R G AN’ S P LAZ A

20

VP

D

SITE

29 ,3

43

VP

D

Ce

nt

ra

lM

al

l

49 ,8

MEMORIAL HIGH SCHOOL

MARKET OVERVIEW

8

LO C AL MA P

M O R G AN’ S P LAZ A

MARKET OVERVIEW

9

REG IONA L MA P

M O R G AN’ S P LAZ A

MARKET OVERVIEW

10

M A R KET S U MMARY

M O R G AN’ S P LAZ A

Beaumont, TX

OVERVIEW Beaumont is a city in and the county seat of Jefferson County, Texas, in the United States, within the Beaumont–Port Arthur Metropolitan Statistical Area. Located in Southeast Texas on the Neches River, Beaumont is about 85 miles east of Houston. Beaumont had an estimated population of 115,141 people in 2020, making it the thirtieth-most populous city in the state of Texas. Beaumont’s estimated population in 2019 was 116,825 residents.

The Beaumont–Port Arthur MSA had an estimated population of 392,563 in 2019.

Beaumont was founded as a town in 1835. The early European–American settlement had an economy based on the development of lumber, farming, and port industries. A big change occurred in 1901 with the Spindletop oil strike, which demonstrated the potential of the huge oil field. With Spindletop, several energy companies developed in Beaumont, and some continue. The area rapidly developed as one of the major petro-chemical refining areas in the country. Along with Port Arthur, LA, and Orange, TX, Beaumont forms the Golden Triangle, a major industrial area on the Texas Gulf Coast.

Beaumont is home of Lamar University, a national Carnegie Doctoral Research university with 14,966 students, including undergraduates and post graduates. Over the years, several corporations have been based in this city, including Gulf States Utilities which had its headquarters in Beaumont until its takeover by Entergy Corporation in 1993.

Since 1907, Beaumont has been home of the South Texas State Fair and Rodeo, held at Ford Park during March. It is the second-largest fair in the state, attracting more than 500,000 visitors in 2009. The fair features a livestock show, a commercial exhibition, a carnival midway and numerous food choices. The Fair moved from the Fair Park Coliseum to Ford Park in 2004, a new, larger facility on the west end of Beaumont. The fair was previously held in the fall but was moved to spring after hurricanes Rita in 2005 and Ike in 2008 caused its cancellation twice within three years.

YMBL Championship Rodeo is held at Ford Park during the South Texas State Fair. The rodeo is an annual event and is sanctioned by the Professional Rodeo Cowboys Association.

MARKET OVERVIEW

11

D E M OG RA PHIC STAT I ST I CS

M O R G AN’ S P LAZ A

1 Mile

3 Mile

5 Mile

Population

1 Mile

3 Mile

5 Mile

Households:

2010 Population

7,921

38,694

77,811

2010 Households

3,306

15,931

29,193

2020 Population

8,389

39,063

78,923

2020 Households

3,476

16,016

29,586

2025 Population Projection

8,448

38,998

78,863

2025 Household Projection

3,496

15,979

29,560

Annual Growth 2010-2020

0.60%

0.10%

0.10%

Annual Growth 2010-2020

0.80%

0.50%

0.50%

Annual Growth 2020-2025

0.10%

0.00%

0.00%

Annual Growth 2020-2025

0.10%

0.00%

0.00%

Median Age

36.3

37.7

37.3

Owner Occupied

1,837

10,352

20,348

Bachelor's Degree or Higher

14%

21%

16%

Renter Occupied

1,659

5,627

9,212

17

32

37

2.3

2.4

2.5

2

2

2

$75.9M

$400.5M

$707.2M

Avg Household Income

$74,564

$86,629

$75,901

Median Household Income

$53,225

$59,999

$54,166

1,036

3,439

6,799

U.S. Armed Forces

Avg Household Size Avg Household Vehicles

Population by Race

Total Consumer Spending

White

5,268

31,588

61,461

Black

2,184

4,281

11,706

47

240

699

695

2,229

3,644

9

55

89

186

670

1,323

$25,000 - 50,000

541

3,050

6,840

1,325

5,524

17,242

$50,000 - 75,000

675

2,386

4,575

$75,000 - 100,000

270

1,986

3,539

American Indian/Alaskan Native Asian Hawaiian & Pacific Islander Two or More Races Hispanic Origin

Housing Median Home Value Median Year Built

Demographic data © CoStar 2021

Income

< $25,000

$159,731

$164,750

$142,998

$100,000 - 125,000

303

1,574

2,770

1981

1975

1968

$125,000 - 150,000

150

839

1,498

$150,000 - 200,000

328

1,672

2,217

$200,000+

171

1,070

1,350

MARKET OVERVIEW

12

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