Parkway Center - Pasadena, TX

PARKWAY CENTER PASADENA, TX (HOUSTON MSA)

PRI CING & F INAN CI AL AN ALYSI S

PAR K WAY C E NT E R

Parkway Center 6005 Fairmont Pkwy Pasadena, TX 77505

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

$2,900,000 7.45% $216,108 $156.22 89.2% 1999 18,563 SF 1.44 Acres

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

2

PRI CING & F INAN CI AL AN ALYSI S

PROJECTED INCOME & EXPENSES Base Rent - Occupied Space

100%

GROSS POTENTIAL RENT

PAR K WAY C E NT E R

CURRENT

PSF

$311,164

$16.76

$311,164

$16.76

EXPENSES

CURRENT

PSF

Real Estate Taxes

$59,542

$3.21

Insurance

$9,424

$0.51

CAM

Expense Reimbursements Real Estate Tax Recoveries

$0

$0.00

Contract Labor

$7,150

$0.39

Insurance Recoveries

$0

$0.00

Repairs and Maintenance

$2,763

$0.15

CAM Recoveries

$0

$0.00

Utilities

$6,173

$0.33

Management Recoveries

$0

$0.00

Total CAM

$16,085

$0.87

$0

$0.00

Management Fee

$10,000

$0.54

$311,160

$16.76

Total Expenses

$95,052

$5.12

Total Real Estate Taxes

$59,542

$3.21

Total Insurance

$9,424

$0.51

Total CAM

$16,085

$0.87

$10,000

$0.54

Total Recoverable Expenses

$95,052

$5.12

Net Operating Income

$216,108

$11.64

Total Expense Reimbursements EFFECTIVE GROSS REVENUE

3.20%

Operating Expenses

Management Fee

3.20%

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

Tenant

PAR K WAY 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

Happy Nails

A

1,600

8.62%

11/04

01/27

$29,101

$2,425

$18.19

$0

$0.00

$29,101

9.35%

Affordable Laser

B

985

5.31%

04/16

03/21

$18,576

$1,548

$18.86

$0

$0.00

$18,576

5.97%

C&D

2,640

14.22%

05/17

09/25

$48,911

$4,076

$18.53

$0

$0.00

$48,911

15.72%

Smilz & Stylz

E

1,480

7.97%

01/18

12/22

$29,304

$2,442

$19.80

$0

$0.00

$29,304

9.42%

Available

F

2,008

10.82%

-

-

$0

$0

$0.00

$0

$0.00

$0

0.00%

Anjoul's Boutique

G

1,000

5.39%

11/15

10/23

$20,040

$1,670

$20.04

$0

$0.00

$20,040

6.44%

The Thrift

H

1,000

5.39%

10/19

03/24

$19,800

$1,650

$19.80

$0

$0.00

$19,800

6.36%

I&J

5,457

29.40%

09/13

06/24

$101,500

$8,458

$18.60

$0

$0.00

$101,500

32.62%

Frank's and Son's Jewelers

L

2,393

12.89%

11/99

10/25

$43,932

$3,661

$18.36

$0

$0.00

$43,932

14.12%

Total Count/GLA

9

18,563

100%

Totals

$311,164

$25,930

$311,164

100.00%

Occupied

8

16,555

89.2%

Available

1

2,008

10.8%

$18.80

16,555

100.0%

Tan Resort

Baity Tax & Assoc

Total Avg Rent

$0

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

4

L E A SE PROVIS ION S

Tenant

PAR K WAY C E NT E R

Suite

SQ FT

Base Rental Increases

Renewal Options

Date

PSF

Options

Date

PSF

User Restrictions & Exclusive Rights

Termination Rights

Sales Reporting

Happy Nails

A

1,600

1/1/2022

18.83

-

-

-

-

-

-

Affordable Laser

B

985

-

-

-

-

-

-

-

-

C&D

2,640

-

-

-

-

-

-

-

-

-

Tan Resort

Smilz & Stylz

E

1,480

-

-

-

-

-

-

Tenant may terminate with 90 days noticed and by paying 3 months rent buyout

Available

F

2,008

10/1/2021 5/1/2022 10/1/2022

14.94 17.93 19.80

-

-

-

-

-

-

Anjoul's Boutique

G

1,000

-

-

1x2

11/1/2020

MKT

-

-

-

The Thrift

H

1,000

-

-

-

-

-

-

-

-

I&J

5,457

-

-

-

-

-

-

-

-

L

2,393

-

-

-

-

-

-

-

-

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

5

Baity Tax & Assoc Frank's and Son's Jewelers Totals

18,563

TE NA NT INF ORMAT I ON

PAR K WAY C E NT E R

Tenant

Baity Tax & Assoc.

Corporate/Franchise

Corporate

Locations

1 Location

Public/Private

Private

Line of Business

Baity Tax & Assoc. is a small tax preparation firm that provides comprehensive tax, financial and bookkeeping services to its clients in order to enable them to meet their personal and business goals more effectively. Baity Tax & Assoc. offers its services to residents in the the Pasadena, Deer Park, and South Houston area.

Tenant

Frank’s & Sons Jewelry

Corporate/Franchise

Corporate

Locations

1 Location

Public/Private

Private

Line of Business

Frank’s & Sons Jewelry is a family-owned and operated one-stop jewelry shop. Opened in 1933, Frank’s & Sons Jewelry offers custom-made jewelry, with all repairs and services done on premise by the shop’s on-site jeweler. Frank’s & Sons Jewelry also buyers precious metals, including gold, silver and pllatinum, and deals in coins and currency.

Tenant

Affordable Laser & MedSpa

Corporate/Franchise

Corporate

Locations

3 Locations

Public/Private

Private

Line of Business

Affordable Laser & MedSpa is a aesthetic medical center and a day spa that has served the Houston and surrounding areas for over 15 years with three convenient locations. Affordable Laser & MedSpa offers luxurious beauty and weight loss treatments at affordable prices.

PROPERTY DESCRIPTION

6

I N VE S TMENT HI GHLI GHT S

PAR K WAY C E NT E R

• Below-Market Rents: The average rental rate at Parkway Center is $19.02 psf all-in while like-kind product in the immediate trade area is leasing from $30.00 to $45.00 psf all-in.

• Longevity of Tenants: The average duration of occupancy in this center is over 7.5 years per tenant.

• Strong Positioning: This property is ideally situated on Fairmont Pkwy between Beltway 8/Sam Houston Tollway and Space Center Blvd, all of which are major thoroughfares in Pasadena. Traffic counts exceed 105,000 vehicle per day on Beltway 8 and Exceed 51,000 vehicle per day on Fairmont Pkwy.

• Highly Leasable Spaces: The average size space in Parkway Center is 2,062 square feet. This makes the property extremely leasable as the tenant pool for this size space is the largest in the industry.

• Superb Demographics: The average household income in the immediate area is over $99,000, which is well above the national average.

• Densely Populated Area: There are nearly 248,963 residents within a 5-mile radius. The population has grown by nearly 4.5% since 2010 with another 2.5% of growth projected by 2025.

• Strong Surrounding Retailers: National retailers in the immediate area of the asset include Target, H-E-B, Walmart Supercenter, The Home Depot, Lowe’s, Best Buy, Goodwill, Ross Dress for Less, Kohl’s, Hobby Lobby, Office Depot, Walgreen’s, Buffalo Wild Wings, Starbucks, Chipotle and Many, Many More PROPERTY DESCRIPTION

7

S I T E PL A N

PAR K WAY C E NT E R

Frank’s and Son’s Jewelers

NOT A PART

Baity Tax & Assoc

The Thrift

FAIRMONT PKWY

Anjoul’s Boutique

Vacant

Smilz & Stylz

Tan Resort NOT A PART Affordable Laser

Happy Nails

COUNTRY RD PROPERTY DESCRIPTION

8

A E R I AL MA P

PAR K WAY C E NT E R

MARSHALL KENDRICK MIDDLE SCHOOL

JENSEN ELEMENTARY SCHOOL 108,309 VPD

SITE 51,718 VPD

FA PL IR A WA Z Y A

FAIRM ONT PKWY

TEGELER EARLY HEAD START

BONDY INTER. SCHOOL

TURNER ELEM. SCHOOL

TEAGUE ELEMENTARY SCHOOL

FAIRMONT ELEMENTARY SCHOOL

FAIRMONT JUNIOR SCHOOL

PASADENA MEMORIAL HIGH SCHOOL

PROPERTY DESCRIPTION

9

A E R I AL MA P

PAR K WAY C E NT E R

1000FT SE

RM FAI

ON

W K P T

Y

1 51 ,7

8 VP

D

PROPERTY DESCRIPTION

10

L E A SE COMPA RABLES

PAR K WAY C E NT E R

GLA

Year Built/ Renovated

Occupancy

Major Tenants

Available SF

Rental Rates

NNN

« 6005 Fairmont Pkwy

18,800

1999/ 2001

89.3%

Baity Tax, Happy Nails, Tan Resort, Frank's and Son's Jeweler's, Anjoul's Boutique

2,008

$18.00 - $20.00

$0.00

1

Fairmont Crossing 7219 Fairmont Pkwy.

Pasadena, TX 77505

27,535

2008

94.6%

Pet Spa, Carol's Nails, The Republic House, Red Wing Shoes, Southern Dental

1,500

$22.00 - $28.00

$6.50

2

Fairmont Tower 4300 Fairmont Pkwy Pasadena, TX 77504

19,788

2004

92.4%

Bayshore Dialysis Center, Tung's Kitchen, Texan Cleaners

1,500

$14.00 - $22.00

$5.75

3

Shops at Fairmont 6443 Fairmont Pkwy Pasadena, TX 77505

8,344

2017

100.0%

Nails Place, The UPS Sotre, Floors for Living, Domino's

0

$23.00 - $30.00

$9.62

4

Fairway Center (Middle Building) 5677 Fairmont Pkwy Pasadena, TX 77505

25,600

2002/ 2008

88.3%

(Target Shadow) Mattress Firm, Massage Heights, T-Mobile, Nails Club, TGF Hair Salon

3,000

$25.00-$45.00

$13.57

5

The Market at Crenshaw 4539 E Sam Houston Pkwy S Pasadena, TX 77505

10,875

2016

100.0%

(Burlington Shadow) Mattress One, Salata, NAM Noodles and More, Menchie's Frozen Yogurt

0

$27.00-$39.00

$12.00

Property

Parkway Center Pasadena, TX 77505

PROPERTY DESCRIPTION

11

L E A SE COMPA RABLES

PAR K WAY C E NT E R

Parkway Center 1

Fairmont Crossing

2

Fairmont Tower

3

Shops at Fairmont

4

Fairway Center (Middle Building)

5

The Market at Crenshaw

4

3

1

2 5

PROPERTY DESCRIPTION

12

LO C AL MA P

PAR K WAY C E NT E R

PROPERTY DESCRIPTION

13

REG IONA L MA P

PAR K WAY C E NT E R

PROPERTY DESCRIPTION

14

M A R KET S U MMARY

PAR K WAY C E NT E R

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 2018 population of 2,325,502. 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 (2018 population estimate of 6,997,384). With a total area of 627 square miles, Houston is the eighth most expansive city in the United States.

where the Mission Control Center is located.

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,

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.

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.

Q U I C K S TAT S

1 2nd No. 3 4th 21 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)

PROPERTY DESCRIPTION

15

D E M OG RA PHIC STAT I ST I CS

PAR K WAY C E NT E R

1 Mile

3 Mile

2025 Projection

10,775

86,970

255,166

2020 Estimate

10,472

84,985

248,963

2010 Census

9,775

82,143

238,350

Growth 2020-2025

2.89%

2.34%

2.49%

5 Mile

Population:

Growth 2010-2020

7.13%

3.46%

4.45%

2020 Population Hispanic Origin

3,888

38,874

135,712

White

9,212

76,314

219,570

Black

217

2,680

10,349

Am. Indian & Alaskan

116

865

2,598

Asian

768

3,681

12,128

13

115

286

146

1,330

4,030

0

10

143

3,643

31,142

84,119

2020 Estimate

3,538

30,440

82,130

2010 Census

3,289

29,455

78,912

Growth 2020 - 2025

2.97%

2.31%

2.42%

Growth 2010 - 2020

7.57%

3.34%

4.08%

Owner Occupied

3,032

19,154

52,188

Renter Occupied

506

11,286

29,942

2020 Avg Household Income

$99,212

$79,206

$79,669

2020 Med Household Income

$88,003

$61,978

$60,445

<$25,000

339

5,246

15,151

$25,000 - $50,000

396

6,868

19,350

$50,000 - $75,000

723

6,352

15,203

$75,000 - $100,000

596

4,026

10,315

$100,000 - $125,000

546

2,981

7,762

2020 Population by Race:

Hawaiian & Pacific Island Other U.S. Armed Forces:

Households: 2025 Projection

2020 Households by Household Inc:

$125,000 - $150,000

369

1,734

5,093

$150,000 - $200,000

411

1,808

5,056

$200,000+

156

1,425

4,200

Demographic data © CoStar 2020

PROPERTY DESCRIPTION

16

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