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Offering Memorandum
HERTZ3390 Harrison Ave • Beaumont, TX 77706
N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E
Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap Real
Estate Investment Services, Inc. ("Marcus & Millichap") and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing
Brochure has been prepared to provide summary, unverified 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. Marcus & Millichap 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, PCB's or asbestos, the compliance with 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 Marketing
Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has
Marcus & Millichap 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate
Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.
THE TEXAS REAL ESTATE COMMISSION (TREC) REGULATES REAL ESTATE BROKERS AND SALES AGENTS, REAL ESTATE INSPECTORS,HOME WARRANTY COMPANIES,
EASEMENT AND RIGHT-OF-WAY AGENTS AND TIMESHARE INTEREST PROVIDERS. YOU CAN FIND MORE INFORMATION AND CHECK THE STATUS OF A LICENSE HOLDER AT
WWW.TREC.TEXAS.GOV. YOU CAN SEND A COMPLAINT AGAINST A LICENSE HOLDER TO TREC. A COMPLAINT FORM IS AVAILABLE ON THE TREC WEBSITE. TREC ADMINISTERS
TWO RECOVERY FUNDS WHICH MAY BE USED TO SATISFY A CIVIL COURT JUDGMENT AGAINST A BROKER, SALES AGENT, REAL ESTATE INSPECTOR, OR EASEMENT OR RIGHT-
OF-WAY AGENT, IF CERTAIN REQUIREMENTS ARE MET. IF YOU HAVE QUESTIONS OR ISSUES ABOUT THE ACTIVITIES OF A LICENSE HOLDER, THE COMPLAINT PROCESS OR THE
RECOVERY FUNDS, PLEASE VISIT THE WEBSITE OR CONTACT TREC AT:
TEXAS REAL ESTATE COMMISSION
P.O. BOX 12188
AUSTIN, TEXAS 78711-2188
(512) 936-3000
Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporations logo or name
is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or
commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.
PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
HERTZ
Beaumont, TX
ACT ID ZAA0280420
2
N E T L E A S E D D I S C L A I M E R
Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:
The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will
not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee,
warranty or representation whatsoever about the accuracy or completeness of any information provided.
As the Buyer of a net leased 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. Marcus &
Millichap 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 net leased 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 net leased 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 tenant 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 tenant 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 lease, including the likelihood of locating a
replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential
replacement tenant 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 Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost,
expense, or liability arising out of your investigation and/or purchase of this net leased property.
3
TABLE OF CONTENTS
SECTION
INVESTMENT OVERVIEW 01Offering Summary
Location Overview
Regional and Local Map
Aerial Photo
FINANCIAL ANALYSIS 02Acquisition Financing
MARKET OVERVIEW 03Market Analysis
Demographic Analysis
HERTZ
4
HERTZ
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INVESTMENT
OVERVIEW
OFFERING SUMMARY
Price $549,642
Net Operating Income $38,475
Capitalization Rate – Current 7.00%
Price / SF $743.76
Rent / SF $52.06
Lease Type NN
Gross Leasable Area 739 SF
Year Built / Renovated 2018
Lot Size 0.57 acre(s)
#
EXECUTIVE SUMMARY
OFFERING SUMMARY
#
FINANCING
Down Payment All Cash
Net Cash Flow 7.00% / $38,475
Cash on Cash Return 7.00%
Total Return 7.00% / $38,475
HERTZ
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HERTZ
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OFFERING SUMMARY
MAJOR EMPLOYERS
EMPLOYER# OF EMPLOYEES
*
Texas Home Health America LP 5,540
CB&i LLC 2,875
Baptistal Hospital of SE Texas 1,700
Memorial Hermann Baptist Beaum 1,620
Beaumont Refinery 1,392
Dawson Marine Inc 1,000
Beaumont State Center 750
Sanserve 712
JEFFERSON COUNTY 600
Walmart 600
Education Futures Group LLC 596
Lamar University-Beaumont 576
DEMOGRAPHICS
1-Miles 3-Miles 5-Miles
2018 Estimate Pop 8,292 64,827 112,295
2010 Census Pop 8,456 64,491 111,477
2018 Estimate HH 3,587 25,877 43,942
2010 Census HH 3,695 25,853 43,757
Median HH Income $49,600 $44,692 $45,015
Per Capita Income $34,029 $28,479 $26,807
Average HH Income $78,306 $70,849 $67,841
* # of Employees based on 5 mile radius
HERTZ
OFFERING SUMMARY
Renovated in 2018
Corporate Guarantee
24 Parking Spaces Available
2% Yearly Rent Increases
Proximity to Multiple Hotel Chains
Settled on 0.57 Acre Lot
INVESTMENT HIGHLIGHTS
Marcus & Millichap is pleased to exclusively list a single tenant building occupied by Hertz Rent A Car and located in Beaumont
(Jefferson County), Texas. Hertz is located at 3390 Harrison Avenue, directly off of Route 10. Currently operating on a 5 year NN
Lease, the approximately 739 square foot building is within proximity to multiple national retailers, eateries and hotel chains.
Beaumont is a city in and the county seat of Jefferson County, Texas, in the United States,[5] within the Beaumont Port Arthur
Metropolitan Statistical Area. Beaumont had a population of 117,267 at the time of the 2010 census, making it the 30th most
populated city in the state of Texas. 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.
GSU's Edison Plaza headquarters remains the tallest building in Beaumont
INVESTMENT OVERVIEW
7
HERTZ
8
INVESTMENT
OVERVIEW
12
TENANT PROFILES
HERTZ
9
Hertz
The Hertz Corporation, a subsidiary of Hertz Global Holdings Inc., is an
American car rental company based in Estero, Florida that operates 10,200
corporate and franchisee locations internationally. As the second-largest US
car rental company by sales, locations, and fleet size, Hertz operates in 150
countries, including North America, Europe, Latin America, Africa, Asia,
Australia, the Caribbean, the Middle East, and New Zealand.[2] The Hertz
Corporation owns Dollar and Thrifty Automotive Group
General Information
Tenant Name Hertz
Website https://www.hertz.com/rentacar/reservation/
Parent Company N/A
Headquartered Estero, FL
Rentable Square Feet 739 SF
Percentage of RBA 100.00%
Lease Commencement 2/1/2018
Lease Expiration 1/31/2023
No. of Locations 10,200+
#
CLOSE PROXIMITY TO:
3390 Harrison Ave, Beaumont, TX 77706
Renovated in 2018
Corporate Guarantee
24 Parking Spaces Available
2% Yearly Rent Increases
Proximity to Multiple Hotel Chains
Settled on 0.57 Acre Lot
Beaumont is a city in and the county seat of
Jefferson County, Texas, in the United
States,[5] within the Beaumont Port Arthur
Metropolitan Statistical Area. Beaumont had a
population of 117,267 at the time of the 2010
census, making it the 30th most populated city
in the state of Texas. 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. GSU's Edison
Plaza headquarters remains the tallest building
in Beaumont
LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX
PROPERTY NAMEHERTZ
PRICING AND VALUATION MATRIX
PROPERTY NAMEHERTZ
10
LOCATION OVERVIEW
#
3390 Harrison Ave, Beaumont, TX 77706
LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX
PROPERTY NAMEHERTZ
PRICING AND VALUATION MATRIX
PROPERTY NAMEHERTZ
11
REGIONAL AND LOCAL MAP
AERIAL PHOTO
HERTZ
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PROPERTY PHOTO
HERTZ
13
PROPERTY PHOTO
HERTZ
14
PROPERTY PHOTO
HERTZ
15
HERTZ
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FINANCIAL
ANALYSIS
#
PROPERTY SUMMARY
OFFERING SUMMARY
#
NOTES
HERTZ
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OFFERING SUMMARY
HERTZ
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MARKET
OVERVIEW
MARKET OVERVIEW
OVERVIEW
BEAUMONT
The Beaumont metro is located in East Texas off the Gulf of Mexico and
is one of the nation’s largest petrochemical refining areas. It shares
borders with the Houston metro to the west and the Lake Charles market
in Louisiana to the east. The metro consists of the counties of Newton,
Hardin, Jefferson and Orange and contains 412,000 people. The cities of
Beaumont, Port Arthur and Orange are known as the Golden Triangle.
Beaumont is the most populous city with 119,000 residents, followed by
Port Arthur with 55,000.
Energy-sector activities play a significant part in the metro’s economy. Companies represented in
the area include Gulf Oil, Magnolia Petroleum Co. and Exxon Mobil. The area is home to a large
portion of the nation’s refining capacity.
Aside from corporate headquarters and the energy industry, large employers represent diverse
employment sectors and generate large staff counts. These include Conn’s, Lamar University,
Christus St. Elizabeth Hospital and Memorial Baptist Hospital.
The Sabine-Neches Waterway ranks among the top in the U.S. in terms of commercial military
outload and is one of the nation’s largest waterway by cargo volume.
DEMOGRAPHICS
1
ECONOMY
METRO HIGHLIGHTS
* Forecast
Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau
HERTZ
PORT ACTIVITY
The Port of Beaumont contributes to significant economic activity in the region.
It is one of the nation’s largest seaports based on tonnage.
INDUSTRIAL AND MANUFACTURING SECTORS
Large industrial facilities in the area include the Exxon Mobil refinery and
chemical plants for Goodyear and DuPont.
CORPORATE HEADQUARTERS
Corporate headquarters represent a variety of industries and include
companies such as Jason’s Deli.
412K
2018POPULATION:
153K
2018HOUSEHOLDS:
37.1
2018MEDIAN AGE:
$49,600
2018 MEDIAN HOUSEHOLD INCOME:
U.S. Median:
38.0U.S. Median:
$58,8001.5%
Growth2018-2023*:
0.3%
Growth2018-2023*:
PROPERTY NAME
MARKETING TEAM
HERTZ
DEMOGRAPHICS
Source: © 2018 Experian
Created on April 2019
POPULATION 1 Miles 3 Miles 5 Miles
2023 Projection
Total Population 8,179 64,797 112,371
2018 Estimate
Total Population 8,292 64,827 112,295
2010 Census
Total Population 8,456 64,491 111,477
2000 Census
Total Population 8,497 64,997 109,246
Current Daytime Population
2018 Estimate 19,310 103,523 157,142
HOUSEHOLDS 1 Miles 3 Miles 5 Miles
2023 Projection
Total Households 3,550 26,133 44,476
2018 Estimate
Total Households 3,587 25,877 43,942
Average (Mean) Household Size 2.33 2.46 2.49
2010 Census
Total Households 3,695 25,853 43,757
2000 Census
Total Households 3,881 25,857 42,732
Occupied Units
2023 Projection 3,550 26,133 44,476
2018 Estimate 4,083 29,449 49,962
HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles
2018 Estimate
$150,000 or More 9.13% 8.40% 7.73%
$100,000 - $149,000 12.41% 10.25% 10.32%
$75,000 - $99,999 12.12% 9.89% 9.86%
$50,000 - $74,999 16.07% 17.37% 18.14%
$35,000 - $49,999 11.42% 12.30% 12.62%
Under $35,000 38.87% 41.79% 41.33%
Average Household Income $78,306 $70,849 $67,841
Median Household Income $49,600 $44,692 $45,015
Per Capita Income $34,029 $28,479 $26,807
HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 Miles
Total Average Household Retail Expenditure
$66,113 $61,470 $61,269
Consumer Expenditure Top 10 Categories
Housing $17,460 $16,320 $16,303
Transportation $13,168 $12,331 $12,283
Shelter $9,445 $8,854 $8,863
Food $6,804 $6,338 $6,319
Personal Insurance and Pensions $6,134 $5,476 $5,457
Health Care $4,298 $4,083 $3,999
Utilities $4,195 $3,984 $3,971
Entertainment $2,785 $2,566 $2,546
Household Furnishings and Equipment
$1,844 $1,674 $1,675
Cash Contributions $1,824 $1,710 $1,661
POPULATION PROFILE 1 Miles 3 Miles 5 Miles
Population By Age
2018 Estimate Total Population 8,292 64,827 112,295
Under 20 26.16% 27.51% 28.25%
20 to 34 Years 21.79% 20.84% 22.05%
35 to 39 Years 7.18% 6.29% 6.34%
40 to 49 Years 11.68% 11.11% 11.04%
50 to 64 Years 19.41% 19.25% 18.69%
Age 65+ 13.76% 15.01% 13.63%
Median Age 36.35 36.26 34.78
Population 25+ by Education Level
2018 Estimate Population Age 25+ 5,612 42,693 72,132
Elementary (0-8) 4.19% 6.08% 5.78%
Some High School (9-11) 6.21% 8.60% 8.34%
High School Graduate (12) 28.66% 30.54% 31.93%
Some College (13-15) 27.06% 24.24% 24.72%
Associate Degree Only 5.47% 5.51% 6.02%
Bachelors Degree Only 18.00% 15.47% 14.56%
Graduate Degree 8.93% 7.91% 7.19%
20
Income
In 2018, the median household income for your selected geography is
$45,015, compare this to the US average which is currently $58,754.
The median household income for your area has changed by 37.37%
since 2000. It is estimated that the median household income in your
area will be $52,198 five years from now, which represents a change
of 15.96% from the current year.
The current year per capita income in your area is $26,807, compare
this to the US average, which is $32,356. The current year average
household income in your area is $67,841, compare this to the US
average which is $84,609.
Population
In 2018, the population in your selected geography is 112,295. The
population has changed by 2.79% since 2000. It is estimated that the
population in your area will be 112,371.00 five years from now, which
represents a change of 0.07% from the current year. The current
population is 48.04% male and 51.96% female. The median age of
the population in your area is 34.78, compare this to the US average
which is 37.95. The population density in your area is 1,430.76 people
per square mile.
Households
There are currently 43,942 households in your selected geography.
The number of households has changed by 2.83% since 2000. It is
estimated that the number of households in your area will be 44,476
five years from now, which represents a change of 1.22% from the
current year. The average household size in your area is 2.49 persons.
Employment
In 2018, there are 73,390 employees in your selected area, this is also
known as the daytime population. The 2000 Census revealed that
58.74% of employees are employed in white-collar occupations in
this geography, and 41.40% are employed in blue-collar occupations.
In 2018, unemployment in this area is 9.97%. In 2000, the average
time traveled to work was 20.00 minutes.
Race and Ethnicity
The current year racial makeup of your selected area is as follows:
37.14% White, 46.92% Black, 0.05% Native American and 3.77%
Asian/Pacific Islander. Compare these to US averages which are:
70.20% White, 12.89% Black, 0.19% Native American and 5.59%
Asian/Pacific Islander. People of Hispanic origin are counted
independently of race.
People of Hispanic origin make up 17.03% of the current year
population in your selected area. Compare this to the US average of
18.01%.
PROPERTY NAME
MARKETING TEAM
HERTZ
Housing
The median housing value in your area was $104,802 in 2018,
compare this to the US average of $201,842. In 2000, there were
25,814 owner occupied housing units in your area and there were
16,917 renter occupied housing units in your area. The median rent at
the time was $392.
Source: © 2018 Experian
DEMOGRAPHICS
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