Spring Cypress Commons - Spring, TX

SPRING CYPRESS COMMONS SPRING, TX

(HOUSTON MSA)

PRI CING & F INAN CI AL AN ALYSI S

SP R ING C Y P R E SS CO M M O NS

Spring Cypress Commons 21327 I-45 Spring, TX 77388

OFFERING SUMMARY Price Cap Rate

$2,850,000 6.68%

Net Operating Income

$190,413

Price PSF

$308.34

Occupancy Year Built Gross Leasable Area Lot Size

82.8% 2007 9,162 SF 0.87 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 GROSS POTENTIAL RENT

82.8%

SP R ING C Y P R E SS CO M M O NS

CURRENT

PSF

$213,661

$23.32

$213,661

$23.32

EXPENSES

CURRENT

PSF

Real Estate Taxes

$74,155

$8.09

Insurance

$8,457

$0.92

CAM

Expense Reimbursements Real Estate Tax Recoveries

$61,408

$6.70

Landscaping

$12,437

$1.36

Insurance Recoveries

$7,003

$0.76

Pylon Sign Maintenance

$1,024

$0.11

CAM Recoveries

$26,102

$2.85

Repairs and Maintenance

$4,881

$0.53

$2,541

$0.28

Electricity

$2,578

$0.28

Total Expense Reimbursements

$97,054

$10.59

Trash

$2,275

$0.25

EFFECTIVE GROSS REVENUE

$310,710

$33.91

Water & Sewer

$1,629

$0.18

Tax Protest Fee

$3,860

$0.42

Management Recoveries

Operating Expenses Total Real Estate Taxes

$74,155

$8.09

Total CAM

$28,685

$3.13

Total Insurance

$8,457

$0.92

Management Fee

$9,000

$0.98

Total CAM

$28,685

$3.13

Total Expenses

$120,296

$13.13

Management Fee

$9,000

$0.98

Total Recoverable Expenses

$120,296

$13.13

Net Operating Income

$190,413

$20.78

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

SP R ING C Y P R E SS 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

Mattress Firm

5,000

54.57%

05/07

08/25

$149,180

$12,432

$29.84

$63,086

$12.62

$212,267

68.32%

Available

1,575

17.19%

-

-

$0

$0

$0.00

$0

$0.00

$0

0.00%

American Shaman

1,197

13.06%

01/19

01/24

$26,867

$2,239

$22.45

$15,717

$13.13

$42,584

13.71%

T-Mobile

1,390

15.17%

08/13

07/23

$37,613

$3,134

$27.06

$18,251

$13.13

$55,864

17.98%

Totals

$213,661

$17,805

$310,715

100.00%

Total Count/GLA

4

9,162

100%

Occupied

3

7,587

82.8%

Available

1

1,575

17.2%

$28.16

7,587

100.0%

Total Avg Rent

$97,054

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

4

E S TI MATED REIMBUR SEMEN T R EVEN U E

Tenant

Suite

SQ FT

% of SQFT

SP R ING C Y P R E SS CO M M O NS

Real Estate Taxes

Insurance

CAM

Management Fee

Total Recovery

Monthly

PSF

Monthly

PSF

Monthly

PSF

Monthly

PSF

Monthly

PSF

Mattress Firm

5,000

54.57%

$3,372

$8.09

$385

$0.92

$1,500

$3.60

$0

$0.00

$5,257

$12.62

Available

1,575

17.19%

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

American Shaman

1,197

13.06%

$807

$8.09

$92

$0.92

$312

$3.13

$98

$0.98

$1,310

$13.13

T-Mobile

1,390

15.17%

$938

$8.09

$107

$0.92

$363

$3.13

$114

$0.98

$1,521

$13.13

Totals

9,162

100%

$5,117

$584

$2,175

$212

$8,088

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

SP R ING C Y P R E SS CO M M O NS Suite

SQ FT

Base Rental Increases Date

Renewal Options

PSF

CAM Cap

CAM Cap Description

User Restrictions & Exclusive Rights

Exclusive store to derive more than 15% of gross revenue from the sale of mattresses or waterbeds

Options

Date

PSF

32.20 37.03

Yes

7% Cap on Controllable CAM

Mattress Firm

5,000

-

-

2x5

9/1/2025 9/1/2030

Available

1,575

-

-

-

-

-

-

-

-

American Shaman

1,197

2/1/2022 2/1/2023

23.95 25.45

1x5

3/1/2024

Mkt

-

-

Exclusive CBD Store

T-Mobile

1,390

-

-

2x5

8/1/2023 8/1/2028

Mkt Mkt

-

-

Exclusive tenant to sell wireless products and services

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

6

TE NA NT INF ORMAT I ON

SP R ING C Y P R E SS CO M M O NS

Tenant

Mattress Firm

Corporate/Franchise

Corporate

Locations

2,600+ Locations

Public/Private

Private

Line of Business

Mattress Firm Inc. is an American Mattress store chain founded in 1986. The headquarters of the company is located in Houston, TX. It is the largest specialty mattress store in the Unites States with over 2,600 locations nationwide

Tenant

T-Mobile

Corporate/Franchise

Franchise

Locations

20,000+ Locations in the United States

Public/Private

Public

Line of Business

T-Mobile is an American wireless network operator. Its largest shareholder is the German telecommunications company Deutsche Telekom (DT) with a 43% share, with Japanese conglomerate holding company SoftBank Group partially owning the company as well at a 24% share. The remaining 33% share of the company is owned by the public through common stock. T-Mobile is the third-largest wireless carrier in the United States, with 103.4 million subscribers as of the end of Q1 2021.

Tenant

American Shaman

Corporate/Franchise

Franchise

Locations

350+ Locations

Public/Private

Private

Line of Business

CBD American Shaman is dedicated to bringing wellness to the world through ultra-concentrated terepene rich CBD oil derived from all natural, high quality industrial hemp. It is legal in all 50 states and is gluten free and eco-friendly, and is bacth tested using Ultra Performance Convergence Chromatography.

PROPERTY DESCRIPTION

7

I N VE S TMENT HI GHLI GHT S

SP R ING C Y P R E SS CO M M O NS

• Exceptional Positioning: Spring Cypress Commons is strategically located at the SW corner of North Fwy (IH 45) and Spring Cypress Rd. The Property offers frontage on both I-45 and Spring Cypress Rd, visible to over 183,000 vehicles per day on I-45 and 58,000 vehicles per day on Spring Cypress Rd. • Immediate Growth: The Property is located just 2.5 miles south of Springwood Village, an 1,800-acre master planned community being developed adjacent to the new ExxonMobil corporate campus. It will have 5,500+ homes upon completion.

• Drive Thru Potential: A Purchaser may have the opportunity to negotiate a lease buy-out with T-Mobile (dark) with 2+ years remaining term. The dark T-Mobile space, closed due to the T-Mobile/Sprint consolidation, provides a suitable drive-thru potential vacancy, a desirable commodity in today’s market.

• Upside: There is a 1,575 SF vacant suite, equating to just over 17% of the GLA. This is a second-generation vacancy, previously being occupied by First Cash Advance.

• National Retailers in the Immediate Area: Academy Sports, Walmart Supercenter, HEB. Kohls, Ross, Michaels, Goodwill Industries, Burkes Outlet, Aaron’s. U-Haul and Many More

PROPERTY DESCRIPTION

8

A E R I AL MA P

SP R ING C Y P R E SS CO M M O NS

183,00 0 V PD

58,000 VPD

SPRING CYPRESS RD HURRICANE HARBOR

MARKET OVERVIEW

9

A E R I AL MA P

SP R ING C Y P R E SS CO M M O NS

183,00 0 V PD

MCNABB ELEMENTARY SCHOOL

SPRING HIGH SCHOOL

MARKET OVERVIEW

10

S I T E PL A N

SPRING CYPRESS RD

Vacant

SP R ING C Y P R E SS CO M M O NS

Pylon Sign

INTERSTATE 45

PROPERTY DESCRIPTION

11

LO C AL MA P

SP R ING C Y P R E SS CO M M O NS

MARKET OVERVIEW

12

REG IONA L MA P

SP R ING C Y P R E SS CO M M O NS

MARKET OVERVIEW

13

M A R KET S U MMARY

SP R ING C Y P R E SS CO M M O NS

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

14

D E M OG RA PHIC STAT I ST I CS

SP R ING C Y P R E SS CO M M O NS

1 Mile

3 Mile

5 Mile

Population

1 Mile

3 Mile

5 Mile

Households:

2010 Population

4,426

55,316

193,610

2010 Households

1,493

19,125

68,405

2020 Population

6,262

72,324

251,061

2020 Households

2,146

25,240

89,282

2025 Population Projection

6,591

75,522

266,156

2025 Household Projection

2,263

26,388

94,757

Annual Growth 2010-2020

3.80%

2.80%

2.70%

Annual Growth 2010-2020

4.00%

2.90%

2.60%

Annual Growth 2020-2025

1.00%

0.90%

1.20%

Annual Growth 2020-2025

1.10%

0.90%

1.20%

Median Age

35.8

35.6

34.1

Owner Occupied

1,931

21,142

64,003

Bachelor's Degree or Higher

35%

34%

32%

Renter Occupied

332

5,246

30,754

0

11

101

Avg Household Size

2.9

2.9

2.8

2

2

2

$83.3M

$921M

$3B

$120,182

$109,972

$100,655

$99,111

$88,432

$77,528

< $25,000

202

2,627

10,509

U.S. Armed Forces

Avg Household Vehicles

Population By Race

Total Consumer Spending

White

4,295

52,634

182,438

Black

1,147

11,797

45,239

38

508

1,990

Avg Household Income

632

5,530

14,748

Median Household Income

9

151

632

Two or More Races

142

1,703

6,014

$25,000 - 50,000

192

3,916

17,253

Hispanic Origin

1,711

19,935

77,738

$50,000 - 75,000

299

3,960

15,629

$75,000 - 100,000

394

3,939

12,359

American Indian/Alaskan Native Asian Hawaiian & Pacific Islander

Housing Median Home Value Median Year Built

Demographic data © CoStar 2020

Income

$220,419

$207,882

$204,597

$100,000 - 125,000

343

3,163

9,944

2005

2001

1999

$125,000 - 150,000

125

2,174

6,821

$150,000 - 200,000

331

2,566

8,260

$200,000+

260

2,894

8,507

MARKET OVERVIEW

15

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