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65,636 SF INVESTMENT OPPORTUNITYGROCERY-ANCHORED RETAIL CENTERCONFIDENTIAL OFFERING MEMORANDUM
EAST TOWNSHOPPING CENTER
PRIMARY CONTACTS:
SECONDARY CONTACTS:
JOSH JACOBS
Principal [email protected]
713.900.3001
BURDETTE HUFFMAN
Principal [email protected]
713.900.3024
BILL PYLE
Vice President [email protected]
713.900.3018
KEVIN HOLL AND
Senior Vice President [email protected]
713.900.3025
JONATHAN WALKER, CCIM
Maestri-Murrell, Inc [email protected]
225.810.3294
EAST TOWN951 3RD AVENUE | LAKE CHARLES, LA 70601
SHOPPING CENTER
CONFIDENTIALOFFERING MEMORANDUM
5444 Westheimer Rd, Suite 1650Houston, Texas 77056
T 713.900.3000edge-cm.com
TABLE OF CONTENTS
EXECUTIVE SUMMARY
THE OFFERING 4
THE PROPERTY
PROPERTY DETAILS
KEY SELLING POINTS
INVESTMENT HIGHLIGHTS
MAJOR TENANT SUMMARY
TENANT PROFILES
AERIALS
SITE PLAN
5
6
8
9
11
14
15
THE FINANCIALS
FINANCIAL SUMMARY
RENT ROLL
CASH FLOW
CASH FLOW ASSUMPTIONS
LEASE EXPIRATIONS
15
16
17
18
19
THE MARKET
LOCATION OVERVIEW
DEMOGRAPHIC MAP
MARKET OVERVIEW
20
22
23
EAST TOWN SHOPPING CENTEREDGE REALTY CAPITAL MARKETS 4
ADDRESS
951 3RD AVENUE LAKE CHARLES, LA 70601
GL A
65,636 SF
L AND ARE A
2.21 ACRES OR 96,108 SF
PRICE
$1,948,000
PRICE PSF
$29.80
IN - PL ACE NOI
$170,501
IN - PL ACE C AP R ATE
8.75%
YE AR BUILT
1963
OCCUPANCY
81% LEASED
PROPERTY DETAILSTHE OFFERING
EDGE Realty Capital Markets is pleased to present the opportunity to acquire East Town Shopping Center (“Property”), a 65,636-square foot grocery-anchored shopping center in Lake Charles, Louisiana. The Property is anchored by Market Basket, the premier grocer in Lake Charles for 54 years. The Property is strategically located in the heart of Lake Charles with convenient access to many of the city’s major employment centers and residential neighborhoods. East Town Shopping Center is approximately 80% occupied and has maintained a long and successful history catering to the surrounding consumer base.
The acquisition of East Town Shopping Center provides a unique opportunity for investors to acquire a shopping center anchored by the region’s leading grocer with a stable income stream in one of the strongest-performing economies in the Gulf Coastal region.
EXECUTIVE SUMMARY
EAST TOWN SHOPPING CENTEREDGE REALTY CAPITAL MARKETS 5
KEY SELLING POINTS
• Anchored by Market Basket, the leading
grocer in the Lake Charles area
• Complementary tenant mix poised to
serve various needs of consumers
• Substantial access via three (3) ingress/
egress along 3rd Avenue
• Upside potential by leasing the remaining
19% vacancy
• Strategically located less than a mile off of
Interstate 10, a major east-west thoroughfare
that connecting Houston to New Orleans
• Developed to maximize visibility & access
for drive-by traffic and surrounding
residential neighborhoods
EAST TOWN SHOPPING CENTEREDGE REALTY CAPITAL MARKETS 6
• GROCERY-ANCHORED CENTER: The Property is anchored by Market Basket, the leading grocer in the Lake Charles MSA. Market Basket experiences a loyal consumer base in the Lake Charles MSA, with over 30% of the market share. Market Basket has called East Town Shopping Center home for 54 years, demonstrating the grocer’s long-term success at the Property.
• MAJOR VALUE ENHANCEMENT OPPORTUNITY: With 12,470 square feet of immediate lease-up potential, East Town Shopping Center provides investors in search of higher yield and excellent value-add opportunity. Multiple tenants occupying the Property have options with contractual rental increases, allowing an investor to realize growth throughout its hold period.
• STRONG LEASING MOMENTUM: The Property has seen an influx of leasing activity, including the recent signing of Dollar Tree and Metro PCS. Accounting for over 15% of the Property’s square footage, the onset of new retailers solidifies the viability of a value-add strategy at East Town Shopping Center.
• COHESIVE MIX OF NATIONAL TENANTS: East Town Shopping Center’s underlying value is bolstered by a diverse tenant lineup featuring a collection of national, regional and local retailers which complement each other and serve the daily needs of the surrounding community. Market Basket, Family Dollar, Dollar Tree, Rent-A-Center and Metro PCS all promote cross-shopping and provide a steady consumer draw to the shopping center.
• PROMINENT RETAIL LOCATION: East Town Shopping Center holds a coveted location along 3rd Avenue A and Broad Street, less than a mile away from Interstate 10. The Property’s leading market position places it in the heart of Lake Charles and provides excellent access and visibility to the surrounding trade area. Additionally, East Town Shopping Center is perfectly situated to benefit from its proximity to the Port of Lake Charles, one of the city’s largest employers.
INVESTMENT HIGHLIGHTS
• EXCEPTIONAL INGRESS/EGRESS: The Property is located on 3rd Avenue just off the intersection of Broad Street. Ease of traffic flow in and around the Property is dictated by the abundance of ingress/egress points to and from the Property via three (3) entrances along 3rd Avenue. These access points ensure the Property’s consumers can quickly and easily reach the shopping center from surrounding neighborhoods.
• STEADFAST LAKE CHARLES ECONOMY: Lake Charles is the fifth largest incorporated city in the state of Louisiana and is comprised of two parishes – Calcasieu and Cameron. It has a diverse economy dominated by energy, tourism, gaming and aircraft repair and is the major industrial, cultural and educational center in southwest Louisiana. A major element of the city and surrounding region’s economy is the Port of Lake Charles, one of the nation’s top ports for exporting and the port of entry for Calcasieu Parish.
EAST TOWN SHOPPING CENTEREDGE REALTY CAPITAL MARKETS 7
MAJOR TENANT SUMMARY
MA JOR TENANTS SIZE (SF) % OF GLA RENT PSF
% OF RENTAL REVENUE
YEARS OFOCCUPANCY
MARKET BASKET 24,000 36.72% $3.00 34.34% 54
FAMILY DOLLAR 12,582 19.25% $3.74 22.44% 18
DOLLAR TREE 8,690 13.29% $5.00 20.72% 1
RENT-A- CENTER 6,210 9.50% $5.33 15.78% 16
TOTALS 51,482 78.76% - 93.28% 31.67
MAJOR TENANT SUMMARY
EAST TOWN SHOPPING CENTEREDGE REALTY CAPITAL MARKETS 8
Dollar Tree Inc. is an International discount retail chain where all goods sold are $1 or less. The company has a long history in the industry, originally founded in 1954 under the name ‘Ben Franklin’, finalizing the brand as the Dollar Tree in 1991. The corporation is headquartered in Chesapeake, Virginia, and operates 13,600+ stores in the continental United States and Canada. Dollar Tree competes in the dollar store and low-end retail markets, and in August of 2015 the company successfully acquired it’s second-largest competitor, Family Dollar.
www.dollartree.com
In 1961, Bruce Thompson opened the first Market Basket grocery store in Groves, Texas. Today, Market Basket remains a privately-owned grocer serving the East Texas and Louisiana region, employing more than 2,000 supermarket associated with 34 full-service supermarkets offering outstanding value on fresh produce, quality meats, delicious bakery goods, beautiful floral arrangements and pharmacy services in select locations.
www.marketbasketfoods.com
www.familydollar.com
In 1959, Leon Levine opened the first Family Dollar store in Charlotte, NC, offering customers a variety of high-quality, good value merchandise for under $2 with the philosophy “the customers are the boss, and you need to keep them happy”. Creating a uniform floor plan for each store allowed customers to easily shop and store managers to focus on good customer service. This self-serve, cash-and-carry neighborhood discount store in low to middle income neighborhoods proved so successful that today Family Dollar has over 8,000 locations across the United States.
Since being incorporated in 1986, Rent-A-Center (RAC) has grown from 16 stores to more than 3,050 in the United States, Puerto Rico, Mexico, and Canada through acquisitions and new store openings. In 1995, RAC went public on the NASDAQ stock market under the symbol “RCII”. The Plano, Texas-based company is a rent-to-own industry leader and employs over 22,000 people.
www.rentacenter.com
MetroPCS is one of the leading providers of unlimited 4G LTE wireless service with no annual contract. We make wireless simple by offering unlimited data, talk and text with all applicable taxes & fees included – so there are no surprises.
www.metropcs.com
TENANT PROFILES
EAST TOWN SHOPPING CENTEREDGE REALTY CAPITAL MARKETS 9
1
2
3
4
1
2
3
4
L AKE CHARLES CIVIC CENTER
L’AUBERGE / GOLDEN NUGGET
PRIEN L AKE MALL
CHENNAULT INTERNATIONAL AIRPORTEAST TOWN SHOPPING CENTER
LOCATION MAP
EAST TOWN SHOPPING CENTEREDGE REALTY CAPITAL MARKETS 12
SITE PLAN
SUITE TENANT SIZE (SF)
929 Market Basket 24,000
931 Available 8,400
933 Rent-A-Center 6,210
935 Dollar Tree 8,690
943 Available 4,120
945 Metro PCS 1,364
947 Family Dollar 12,582
EAST TOWN SHOPPING CENTEREDGE REALTY CAPITAL MARKETS 13
LAKE CHARLES RETAIL MARKET
East Town Shopping Center’s superior location provides excellent visibility to an expansive trade area as a well-positioned shadow grocery-anchored retail neighborhood center in Lake Charles, Louisiana. Strategically located at the southeast corner of 1st Street and 3rd Avenue, the Property has frontage on Avenue A and draws over 85,000 consumers within a 5-mile radius. Lake Charles is the fifth largest incorporated city in the state of Louisiana and is comprised of two parishes – Calcasieu and Cameron. It has a diverse economy dominated by energy, tourism, gaming and aircraft repair and is the major industrial, cultural and educational center in southwest Louisiana. Lake Charles is in the beginning stages of its largest growth period in history and has been nationally recognized for its new corporate construction and expansion projects. The city is projected to be one of the dominating economies of the Gulf Coast region and expected to lead the state of Louisiana in job growth.
As the regional hub of southwest Louisiana, which encompasses five parishes totaling 5,617 square miles and a population exceeding 698,000, Lake Charles is the largest city within a 75-mile radius and serves as the geographic mid-point along Interstate 10 between Houston and New Orleans/Baton Rouge. Lake Charles’ prime regional location with access to the Gulf of Mexico, diverse economy, variety of entertainment options and revitalization of its downtown enhances the quality of life and has made Lake Charles an excellent destination for businesses and families. The city is home to the Port of Lake Charles, the 6th top port for exports in the nation and the port of entry for Calcasieu Parish. Lake Charles’ location near the Gulf of Mexico, diverse economy, strong infrastructure, pro-business environment and high quality of life makes it a great place to live and do business.
BEAUMONT RETAIL TOTAL
3-MILE RADIUSOF PROPERTY
Number of Buildings 1,836 460
Existing Supply (SF) 23,489,149 3,850,229
Available (SF) 1,473,497 169,139
Occupancy 95.7% 98.4%
Average Rental Rate $11.10 PSF $11.48 PSF
12 Month Absorption (SF) 123,083 -3,143
Under Construction (SF) 49,472 0
12 Month Deliveries (SF) 76,199 0
TRADE AREA ATTRIBUTES
LOCATION OVERVIEW
LOCATION / TRADE AREA OVERVIEW
EAST TOWN SHOPPING CENTEREDGE REALTY CAPITAL MARKETS 14
NEW ORLEANS 9. 52 M I L L ION A N N UA L V I SI TOR S I N 2 015
#1 FA ST E ST- GROW I NG CI T Y FOR
E M PLOY M E N T, I NCOM E , A N D
POPU L AT ION I N T H E U. S .
POPUL ATION
4,670,724
LAFAYETTE#1 M S A FOR JOB GROW T H OF U. S .
M I D - SI Z E D CI T I E S I N 2 015
SHREVEPORT#1 LOW E ST N E W BUSI N E S S I N V E ST M E N T
COSTS I N T H E U. S .
BATON ROUGE HOM E TO STAT E’S L A RGE ST H IGH E R
E DUC AT ION I NST I T U T ION, LOU I SI A NA
STAT E U N I V E R SI T Y (30 ,0 0 0 + ST U DE N T
E N ROL L M E N T )
TOP
10BUSINESS CLIMATE BY A R E A DE V ELOPM EN T, BUSI N E S S FACI L I T I E S, A N D SI T E SEL ECT ION I N 2 015
NAMED AMERICA’S NEW FRONTIER FOR BUSINESS BY FORBES IN 2013
TOP 5 BUSINESS-FRIENDLY CITY IN THE UNITED STATES
28,900,000A NN UA L V ISITORS IN 2015
13%COST OF LIVING13% LOW ER T H A N T H E U.S. AV ER AGE
3RD LOWEST PROPERTY TAXES 0.92% LOW ER TH A N THE U.S. AV ER AGE
MOST ENGAGED WORKERSIN THE U.S. BY GALLUP IN 2015
3RD LARGEST PRODUCER OF PET ROL EU M I N T H E U.S.
19 REFINERIESCA PACIT Y TO PRODUCE 3,273,020 BARRELS PER DAY
LAKE CHARLES L A RGE ST C A SI NO M A R K ET I N T H E STAT E
#5 L A RGE ST I NCOR POR AT E D CI T Y I N T H E STAT E
MARKET OVERVIEW - LOUISIANA
EAST TOWN SHOPPING CENTEREDGE REALTY CAPITAL MARKETS 15
LARGEST CITY IN THE STATE5th DEMOGR A PHICS (MSA)
POPULATION 206,831
TOTAL HOUSEHOLDS 82,205
AVERAGE HOUSEHOLD INCOME $66,260
MEDIAN AGE 35.4
BACHELOR DEGREE + 20.7%
TOTAL EMPLOYEES 102,995
COST OF LIVING 4.5% LOWER TH A N TH E U.S. AV ER AGE
HOME TO CHENNAULT INTERNATIONAL AIRPORT A M E R I C A ’ S P R E M I E R I N D U S T R I A L A I R P O R T
L A RGE ST EM PLOY ER S
CALCASIUE VETERINARY MEDICAL ASSOCIATION,
MBS ANSWERING SERVICES
ST. CHARLES GAMING CO, INC.
PNK (LAKE CHARLES), LLC
SWHLS, INC.
SOUTHWEST LOUISIANA HOSPITAL ASSOCIATION
SOUTHWEST LOUISIANA MEMORIAL FOUNDATION
CITY OF LAKE CHARLES
8,500+ ST U DEN TS ATTEND MCNEESE STATE UNIVERSITY
REGIONA LLY SIGNIFICA NT CENTER FOR PETROCHEMICAL PLANTS AND OIL REFINERY
LARGEST CASINO MARKETIN THE STATE OF LOUISIANA
DIVERSE EMPLOYMENT &CULTURAL CENTER
MARKET OVERVIEW - LAKE CHARLES
EAST TOWN SHOPPING CENTEREDGE REALTY CAPITAL MARKETS 16
IN PLACE YEAR 1 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 YEAR 11
PSF MAR 2018 MAR 2019 MAR 2020 MAR 2021 MAR 2022 MAR 2023 MAR 2024 MAR 2025 MAR 2026 MAR 2027 MAR 2028
BASE RENTAL REVENUE $4.62 $301,667 $302,102 $304,088 $304,691 $323,625 $352,382 $362,340 $362,340 $375,785 $384,971 $391,682
ABSORPTION & TURNOVER VACANCY ($1.40) ($91,600) - - - ($35,975) ($9,148) ($8,199) - ($10,641) ($20,828) -
$209,693 $3.21 $210,067 $302,102 $304,088 $304,691 $287,650 $343,234 $354,141 $362,340 $365,144 $364,143 $391,682
EXPENSE REIMBURSEMENT REVENUE $82,416 $1.28 $83,735 $113,126 $117,184 $120,388 $110,654 $121,213 $127,378 $132,943 $133,647 $137,649 $146,313
$292,109 $4.49 $293,802 $415,228 $421,272 $425,079 $398,304 $464,447 $481,519 $495,283 $498,791 $501,792 $537,995
GENERAL VACANCY - - ($20,761) ($21,064) ($21,254) - ($14,532) ($16,287) ($24,764) ($14,831) ($5,303) ($29,556)
COLLECTION LOSS - - - - - - - - - - - -
$292,109 $4.49 $293,802 $394,467 $400,208 $403,825 $398,304 $449,915 $465,232 $470,519 $483,960 $496,489 $508,439
CONTRACT SERVICES $7,152 $0.11 $7,149 $7,363 $7,584 $7,812 $8,046 $8,288 $8,536 $8,792 $9,056 $9,328 $9,607
REPAIRS & MAINTENANCE $49,956 $0.76 $49,954 $51,452 $52,996 $54,586 $56,223 $57,910 $59,647 $61,437 $63,280 $65,178 $67,134
GENERAL & ADMINISTRATIVE $8,868 $0.14 $8,867 $9,133 $9,407 $9,689 $9,980 $10,279 $10,588 $10,905 $11,232 $11,569 $11,917
UTILITIES $4,356 $0.07 $4,357 $4,488 $4,622 $4,761 $4,904 $5,051 $5,202 $5,358 $5,519 $5,685 $5,855
MANAGEMENT FEE $11,688 $0.18 $11,752 $15,779 $16,008 $16,153 $15,932 $17,997 $18,609 $18,821 $19,358 $19,860 $22,463
INSURANCE $22,092 $0.34 $22,093 $22,756 $23,438 $24,141 $24,866 $25,612 $26,380 $27,171 $27,987 $28,826 $29,691
RE TAXES $17,496 $0.27 $17,500 $18,025 $18,565 $19,122 $19,696 $20,287 $20,895 $21,522 $22,168 $22,833 $23,518
$121,608 $1.86 $121,672 $128,996 $132,620 $136,264 $139,647 $145,424 $149,857 $154,006 $158,600 $163,279 $170,185
$170,501 $2.63 $172,130 $265,471 $267,588 $267,561 $258,657 $304,491 $315,375 $316,513 $325,360 $333,210 $338,254
TENANT IMPROVEMENTS - - - $125,200 - - $125,835 $26,255 $29,517 - $42,563 $89,511 -
LEASING COMMISSIONS - - - $33,528 - - $70,077 $24,152 $11,069 - $20,111 $26,126 -
CAPITAL RESERVES $13,068 $0.20 $13,073 $13,465 $13,869 $14,285 $14,714 $15,155 $15,610 $16,078 $16,561 $17,058 $17,569
$13,068 $0.20 $13,073 $172,193 $13,869 $14,285 $210,626 $65,562 $56,196 $16,078 $79,235 $132,695 $17,569
$157,433 $2.43 $159,057 $93,278 $253,719 $253,276 $48,031 $238,929 $259,179 $300,435 $246,125 $200,515 $320,685CASH FLOW
SCHEDULED BASE RENTAL REVENUE
TOTAL POTENTIAL GROSS REVENUE
TOTAL EFFECTIVE GROSS REVENUE
TOTAL OPERATING EXPENSES
TOTAL LEASING & CAPITAL COSTS
EFFECTIVE GROSS REVENUE
OPERATING EXPENSES
LEASING & CAPITAL COSTS
NET OPERATING INCOME
CASH FLOW
EAST TOWN SHOPPING CENTEREDGE REALTY CAPITAL MARKETS 17
RENT ROLL
MARKET BASKET 929 24,000 36.72% 12/5/1963 10/31/2021 4/1/2017 $3.00 $72,000 NNN w/ 15% Admin on total Opex
4 x 5-year options, based on CPI
0
RENT-A-CENTER 933 6,210 9.50% 5/1/2001 4/30/2021 4/1/2017 $5.33 $33,099 NNN w/ 15% Admin on total Opex
0 5/1/2019 $5.60 $34,776
0
DOLLAR TREE 935 8,690 13.29% 8/1/2016 8/31/2021 4/1/2017 $5.00 $43,450 None
5 x 5-year renewal options; Each option has a $0.50 psf increase in rent
0
METRO PCS 945 1,364 2.09% 5/1/2016 4/30/2021 4/1/2017 $10.33 $14,090 NNN w/ 15% Admin on total Opex
0 5/1/2017 $10.64 $14,513
0 5/1/2018 $10.96 $14,949
0 5/1/2019 $11.29 $15,400
0 5/1/2020 $11.63 $15,863
0
FAMILY DOLLAR 947 12,582 19.25% 4/1/1999 6/30/2022 4/1/2017 $3.74 $47,057 NNN
6 x 5-year renewal options; Each option has a 10% increase in rent
0
AVAILABLE 931 8,400 12.85% 4/1/2018 3/31/2025 4/1/2018 $6.00 NNN
0
AVAILABLE 943 4,120 6.30% 4/1/2018 3/31/2023 4/1/2018 $10.00 NNN
0
TOTAL LEASED 52,846 80.85%
TOTAL VACANT 12,520 19.15%
TOTAL AREA 65,366 100.00%
$209,696TOTAL IN-PLACE RENT
EXPENSE REIMBURSEMENTMETHOD
SUITE SF (BUILDING) ANNUAL RENT% OF GLA
LEASESTART
LEASEEND
PSF (BUILDING)
OPTIONS/NOTES
DATE
EAST TOWN SHOPPING CENTEREDGE REALTY CAPITAL MARKETS 18
LEASE EXPIRATIONS
RENT-A-CENTER 933 Contract 5/1/2001 4/30/2021 5 6,210 9.50%
METRO PCS 945 Contract 5/1/2016 4/30/2021 5 1,364 2.09%
DOLLAR TREE 935 Contract 8/1/2016 8/31/2021 5 8,690 13.29%
MARKET BASKET 929 Contract 12/5/1963 10/31/2021 5 24,000 36.72%
0 TOTAL MAR-2022 EXPIRATIONS 5 40,264 61.60% 40,264 61.60%
FAMILY DOLLAR 947 Contract 4/1/1999 6/30/2022 6 12,582 19.25%
AVAILABLE 943 Speculative 4/1/2018 3/31/2023 6 4,120 6.30%
0 TOTAL MAR-2023 EXPIRATIONS 6 16,702 25.55% 56,966 87.15%
AVAILABLE 931 Speculative 4/1/2018 3/31/2025 8 8,400 12.85%
0 TOTAL MAR-2025 EXPIRATIONS 8 8,400 12.85% 65,366 100.00%
% GLACUMULATIVE SF (BUILDING)
CUMULATIVE % GLA
SUITE STATUSLEASESTART
LEASEEND
ANALYSISYEAR
BUILDING SF
EAST TOWN SHOPPING CENTEREDGE REALTY CAPITAL MARKETS 19
FINANCIAL ASSUMPTIONS
SUITE 931: $6.00 PSF NEW / $6.00 PSF RENEWALSUITE 943: $10.00 PSF NEW / $10.00 PSF RENEWAL
NNN w/ 15% ADMIN ON ALL EXP Market Basket, Rent-A-Center, Metro PCSNNN Family Dollar6,000 SF - 10,000 SF Suite 931<6,000 SF Suite 943NONE Dollar Tree
<6,000 SF $15.00 PSF NEW / $3.00 PSF RENEWAl6,000 SF - 10,000 SF $10.00 PSF NEW / $2.00 PSF RENEWAl> 10,000 SF $5.00 PSF NEW / $1.00 PSF RENEWAl
6.0% NEW / 4.0% RENEWAL
<6,000 SF 70%6,000 SF - 10,000 SF 75%> 10,000 SF 80%
9 MONTHS
<6,000 SF 5 years6,000 SF - 10,000 SF 5 years> 10,000 SF 10 years
SUITE 931: MONTH 13 / 8,400 SF / $6.00 PSFSUITE 943 MONTH 13 / 4,120 SF / $10.00 PSF
3%
CONTRACT SERVICES: $7,149 per year (100% fixed)REPAIRS & MAINTENANCE: $49,954 per year (100% fixed)GENERAL & ADMINISTRATIVE: $8,867 per year (100% fixed)UTILITIES: $4,357 per year (100% fixed)MANAGEMENT FEES: 4.00% OF EGR (100% fixed)INSURANCE: $22,093 per year (100% fixed)REAL ESTATE TAXES: $17,500 per year (100% fixed)
$0.20 PSF PER YEAR (100% FIXED)
5.00% OF POTENTIAL GROSS REVENUE
65,366
92.79%
*Note 1: Both new market rents and renewal rents are subject to annual inflation. Renewal rates are based on the next rent bump or option period discounted back to the present value.*Note 2: Operating Expenses based on 2016 Operating Statements provided.*Note 3: Average Projected Economic Occupancy based on 10-year hold period.
LEASE UP
GENERAL INFLATION
CAPITAL RESERVES
OPERATIONAL EXPENSES
MARKET BASKET: $4.00 PSF NEW / SEE NOTE 1 REGARDING RENEWAL RATES
GENERAL VACANCY
TOTAL NET RENTABLE SF
AVERAGE PROJECTED ECONOMIC OCCUPANCY
TI ALLOWANCE
LEASING COMMISSIONS
RENEWAL PROBABILITY
MONTHS VACANT
LEASE TERM
METRO PCS: $10.00 PSF NEW / SEE NOTE 1 REGARDING RENEWAL RATES
RENT-A-CENTER: $5.00 PSF NEW / SEE NOTE 1 REGARDING RENEWAL RATESDOLLAR TREE: $5.00 PSF NEW / SEE NOTE 1 REGARDING RENEWAL RATES
FAMILY DOLLAR: $4.00 PSF NEW / SEE NOTE 1 REGARDING RENEWAL RATESMARKET LEASING ASSUMPTIONS - RENTS
REIMBURSEMENTS
EAST TOWN SHOPPING CENTEREDGE REALTY CAPITAL MARKETS 20
LEASE ABSTRACTS
TENANT:
SQUARE FOOTAGE:
SPECIFIC USE:
DOCUMENTATION:
RENT COMMENCEMENT DATE:
LEASE EXPIRATION DATE:
TERM:
SECURITY DEPOSIT:
Period Per Month Annual PSF
August 25, 2016 - November 24, 2016 $0.00 $0.00 $0.00
*Rent Commencement per the lease is the same as the commencement date; however, Tenant is granted the equivalent of three months of free rent
November 25, 2016 - August 31, 2021 $3,620.83 $43,450.00 $5.00
Remaining Renewal Options
Term 1: September 1, 2021 - August 31, 2026 $3,982.92 $47,795.00 $5.50
Term 2: September 1, 2026 - August 31, 2031 $4,345.00 $52,140.00 $6.00
Term 3: September 1, 2031 - August 31, 2036 $4,707.08 $56,485.00 $6.50
Term 4: September 1, 2036 - August 31, 2041 $5,069.17 $60,830.00 $7.00
Term 5: September 1, 2041 - August 31, 2046 $5,431.25 $65,175.00 $7.50
RENEWAL OPTION(S):
CAM PAYMENTS:
INSURANCE PAYMENTS:
RE TAX PAYMENTS:
UTILITIES:
TENANT MAINTENANCE:
LANDLORD MAINTENANCE:
PERCENTAGE RENT:
BASE RENT:
None.
None.
Tenant shall pay for all utilities used in the premises.
Tenant shall keep the premises and any fixtures, facilities or equipment contained therein in good condition and repair, including but not limited to, the exterior and interior portions of all doors, windows, plate glass and showcases surrounding the premises; all electrical, plumbing and sewer systems inside of the premises and all portions of the store front area which do not constitute common area.
Landlord shall keep the foundations, roof, floor, floor slab, walls, other structural portions and sprinkler system serving the premises in good repair
N/A
None.
Dollar Tree
8,690
Premises shall be used as a retail variety store selling general merchandise including food and beverages.
Lease dated June 1, 2016, first amendment dated July 27, 2016 and commencement letter dated August 31, 2016.
November 25, 2016
August 31, 2021
5 years
None.
5, 5-year renewal options remaining. Tenant must provide written notice of not less than 6 months prior to the expiration of the term.
EAST TOWN SHOPPING CENTEREDGE REALTY CAPITAL MARKETS 21
LEASE ABSTRACTS
BREAKPOINT:
EXECUTOR:
GUARANTOR:
ASSIGNEE:
CO-TENANCY/TERMINATION:
EXCLUSIVES / RESTRICTIONS:
ESTOPPEL CERTIFICATE:
ADDITIONAL INFORMATION:
Tenant shall provide an estoppel certificate within 30 days upon written request by the Landlord.
N/A
Landlord shall not lease any space in the shopping center for the operation of a single price point variety store.
N/A
Dollar Tree Stores, Inc
N/A
N/A
Tenant has the right to terminate the lease if the tenant Market Basket has ceased to operate in the center and is not replaced within a period of 6 months by a suitable tenant occupying at least 75% of the square footage currently occupied by Market Basket.
EAST TOWN SHOPPING CENTEREDGE REALTY CAPITAL MARKETS 22
LEASE ABSTRACTS
TENANT:
SQUARE FOOTAGE:
ORIGINAL SQUARE FOOTAGE:
SPECIFIC USE:
DOCUMENTATION:
RENT COMMENCEMENT DATE:
LEASE EXPIRATION DATE:
TERM:
SECURITY DEPOSIT:
Period Per Month Annual PSF
April 29, 1999 - December 31, 2004 $2,500.00 $30,000.00 $3.57
Renewal Option Exercised
Term 1: January 1, 2005 - December 31, 2009 $2,625.00 $31,500.00 $3.75
Term 2: January 1, 2010 - June 30, 2012 $2,625.00 $31,500.00 $3.75
Term 2: July 1, 2012 - June 30, 2017 $3,920.00 $47,040.00 $3.74
Remaining Renewal Option
Term 1: July 1, 2017 - June 30, 2022 $3,920.00 $47,040.00 $3.74
Term 2: July 1, 2022 - June 30, 2027 $4,312.00 $51,744.00 $4.11
Term 3: July 1, 2027 - June 30, 2032 $4,743.20 $56,918.40 $4.52
Term 4: July 1, 2032 - June 30, 2037 $5,217.50 $62,610.00 $4.98
Term 5: July 1, 2037 - June 30, 2042 $5,739.25 $68,871.00 $5.47
Term 6: July 1, 2042 - June 30, 2047 $6,313.20 $75,758.40 $6.02
RENEWAL OPTION(S):
CAM PAYMENTS:
INSURANCE PAYMENTS:
RE TAX PAYMENTS:
UTILITIES:
TENANT MAINTENANCE:
LANDLORD MAINTENANCE:
PERCENTAGE RENT:
BASE RENT:
6, 5-year renewal options remaining. Tenant must provide written notice of not less than 180 days prior to the expiration of the term.
Tenant shall reimburse Landlord its pro rata share of all Insurance expenses.
Tenant shall reimburse Landlord its pro rata share of all Real Estate Tax expenses.
Tenant shall pay all charges for gas, water, fuel and electricity used in the premises.
Tenant shall maintain and repair all interior, non-structural portions of the premises except those portions which landlord is obligated to maintain and repair.
Landlord shall be responsible for maintaining and repairing all exterior portions of the premises including the roof, exterior walls, canopy, gutters, downspouts, doors, door closures and plate glass; all structural portions of the building both interior and exterior; sprinkler systems and all exterior plumbing and electrical lines; and all parking areas and driveways.
2.50%
Tenant shall reimburse Landlord its pro rata share of all CAM expenses. The increase in CAM expenses is capped at 5% per year.
April 29, 1999
June 30, 2017
5 years and 8 months + 5 years + 7 years and 6 months
None.
Family Dollar
12,582
8,400
Premises shall be used for the conduct of a mercantile business of the type and known as a "variety store", "discount store", "dollar store" or "variety discount store".
Lease and February 11, 1999, first amendment to lease dated June 29, 2004, executed proposal dated April 28, 2009, letter of intent dated November 10, 2011 and third amendment dated April 16, 2012.
EAST TOWN SHOPPING CENTEREDGE REALTY CAPITAL MARKETS 23
LEASE ABSTRACTS
BREAKPOINT: Period Breakpoint
April 29, 1996 - December 31, 2004 $1,000,000.00
Renewal Option Exercised
Term 1: January 1, 2005 - December 31, 2009 $1,050,000.00
Term 2: January 1, 2010 - June 30, 2012 $1,050,000.00
Term 2: July 1, 2012 - June 30, 2017 $1,881,600.00
Remaining Renewal Option
Term 1: July 1, 2017 - June 30, 2022 $1,881,600.00
Term 2: July 1, 2022 - June 30, 2027 $2,069,760.00
Term 3: July 1, 2027 - June 30, 2032 $2,276,736.00
Term 4: July 1, 2032 - June 30, 2037 $2,504,400.00
Term 5: July 1, 2037 - June 30, 2042 $2,754,840.00
Term 6: July 1, 2042 - June 30, 2047 $3,030,336.00
EXECUTOR:
GUARANTOR:
ASSIGNEE:
CO-TENANCY/TERMINATION:
EXCLUSIVES / RESTRICTIONS:
ESTOPPEL CERTIFICATE:
ADDITIONAL INFORMATION:
Tenant shall provide an estoppel certificate within 10 days upon written request by the Landlord.
N/A
Landlord shall not lease any space in the shopping center to any discount store occupying 40,000 square feet operated by or under the name of Fred's, Marc's, Wal-Mart, K-Mart, Meijer's, Duckwall-Alco, Big Lots, Shopko, Pamida, Value City, Dolgencorp or Dollar General, Bonus Dollar, Deal$, Only Deals, 99 Cents Only, Dollar Tree or any entity controlled by, affiliated with or related to any of them or any other dollar store or single price point store occupying more than 2,000 square feet or to any store operated by Variety Wholesalers including Maxway, Roses, Super 10, ValuMart, Popes and Bargaintown.
Family Dollar Stores of Louisiana, Inc
N/A
N/A
Tenant has the right to terminate the lease if the tenant Market Basket ceases to conduct its business in the shopping center.
EAST TOWN SHOPPING CENTEREDGE REALTY CAPITAL MARKETS 24
LEASE ABSTRACTS
TENANT:
SQUARE FOOTAGE:
SPECIFIC USE:
DOCUMENTATION:
RENT COMMENCEMENT DATE:
LEASE EXPIRATION DATE:
TERM:
SECURITY DEPOSIT:
Period Per Month Annual PSF
November 1, 2016 - October 31, 2017 $6,000.00 $72,000.00 $3.00
November 1, 2017 - October 31, 2021 TBD - Based on CPI
Remaining Renewal Option
Term 1: November 1, 2021 - October 31, 2026 TBD - Based on CPI
Term 2: November 1, 2023 - October 31, 2031 TBD - Based on CPI
Term 3: November 1, 2031 - October 31, 2036 TBD - Based on CPI
Term 4: November 1, 2036 - October 31, 2041 TBD - Based on CPI
RENEWAL OPTION(S):
CAM PAYMENTS:
INSURANCE PAYMENTS:
RE TAX PAYMENTS:
UTILITIES:
TENANT MAINTENANCE:
LANDLORD MAINTENANCE:
PERCENTAGE RENT:
4, 5-year renewal options remaining. Tenant must provide written notice of not less than 6 months prior to the expiration of the term.
Tenant shall reimburse Landlord its pro rata share of all Insurance expenses plus an administrative fee equal to 15% of such expenses.
Tenant shall reimburse Landlord its pro rata share of all Real Estate Tax expenses plus an administrative fee equal to 15% of such expenses.
Tenant shall pay all charges for utilities supplied to the premises.
Tenant shall at its own cost and expense make any necessary repairs, improvements and decorations and perform all maintenance on, in and to the demised premises that are necessary or appropriate to keep the leased premises including the doors and windows, clean, orderly and in good condition and repair, and in a safe and tenantable condition. Tenant's obligation shall include, without limitation the maintenance, repair and replacement of the store front including but not limited to all glass, doors and windows, tenant's signs, all mechanical plumbing and HVAC.
Landlord shall keep the roof and the exterior walls of the demised premises (excluding the store front, interior nonstructural portions of the exterior walls and any plate glass, windows, window frames, doors and door frames) in proper repair.
1.00%
Tenant shall reimburse Landlord its pro rata share of all CAM expenses and an administrative fee equal to 15% of such expenses.
Market Basket
24,000
Premises shall be used as a supermarket, grocery store or food store selling any one or more of all the types of merchandise handled by tenant from time to time in any of its other stores and for storage, processing and office uses incidental to operation of such supermarket.
Lease dated November 4, 2016.
November 1, 2016
October 31, 2021
5 years
None.
BASE RENT:
EAST TOWN SHOPPING CENTEREDGE REALTY CAPITAL MARKETS 25
LEASE ABSTRACTS
BREAKPOINT: Period Per Month
November 1, 2016 - October 31, 2017 $7,200,000.00
November 1, 2017 - October 31, 2021 TBD
Remaining Renewal Option
Term 1: November 1, 2021 - October 31, 2026 TBD
Term 2: November 1, 2023 - October 31, 2031 TBD
Term 3: November 1, 2031 - October 31, 2036 TBD
Term 4: November 1, 2036 - October 31, 2041 TBD
EXECUTOR:
GUARANTOR:
ASSIGNEE:
CO-TENANCY/TERMINATION:
EXCLUSIVES / RESTRICTIONS:
ESTOPPEL CERTIFICATE:
ADDITIONAL INFORMATION:
Tenant shall provide an estoppel certificate within 5 days upon written request by the Landlord.
Tenant has been on the property since December 1963 and signed a new lease in 2016.
Tenant shall not operate any similar business within a radius of 5 miles from the shopping center
Retail Investors of TX, LTD
N/A
N/A
N/A
EAST TOWN SHOPPING CENTEREDGE REALTY CAPITAL MARKETS 26
LEASE ABSTRACTS
TENANT:
SQUARE FOOTAGE:
SPECIFIC USE:
DOCUMENTATION:
RENT COMMENCEMENT DATE:
LEASE EXPIRATION DATE:
TERM:
SECURITY DEPOSIT:
Period Per Month Annual PSF
May 1, 2016 - April 30, 2017 $1,174.18 $14,090.16 $10.33
May 1, 2017 - April 30, 2018 $1,209.41 $14,512.92 $10.64
May 1, 2018 - April 30, 2019 $1,245.79 $14,949.48 $10.96
May 1, 2019 - April 30, 2020 $1,283.30 $15,399.60 $11.29
May 1, 2020 - April 30, 2021 $1,321.94 $15,863.28 $11.63
RENEWAL OPTION(S):
CAM PAYMENTS:
INSURANCE PAYMENTS:
RE TAX PAYMENTS:
UTILITIES:
TENANT MAINTENANCE:
LANDLORD MAINTENANCE:
PERCENTAGE RENT:
May 1, 2016
April 30, 2021
5 years
$1,294
Metro PCS
1,364
Premises shall be used for the operation of a cell phone store.
Lease dated March 21, 2016.
BASE RENT:
None.
Tenant shall reimburse Landlord its pro rata share of all Insurance expenses plus an administrative fee equal to 15% of such expenses.
Tenant shall reimburse Landlord its pro rata share of all Real Estate Tax expenses plus an administrative fee equal to 15% of such expenses.
Tenant shall pay all charges for utilities supplied to the premises.
Tenant shall at its own cost and expense make any necessary repairs, improvements and decorations and perform all maintenance on, in and to the demised premises that are necessary or appropriate to keep the leased premises including the doors and windows, clean, orderly and in good condition and repair, and in a safe and tenantable condition. Tenant's obligation shall include, without limitation the maintenance, repair and replacement of the store front including but not limited to all glass, doors and windows, tenant's signs, all mechanical plumbing and HVAC.
Landlord shall keep the roof and the exterior walls of the demised premises (excluding the store front, interior nonstructural portions of the exterior walls and any plate glass, windows, window frames, doors and door frames) in proper repair.
N/A
Tenant shall reimburse Landlord its pro rata share of all CAM expenses and an administrative fee equal to 15% of such expenses.
EAST TOWN SHOPPING CENTEREDGE REALTY CAPITAL MARKETS 27
LEASE ABSTRACTS
BREAKPOINT:
EXECUTOR:
GUARANTOR:
ASSIGNEE:
CO-TENANCY/TERMINATION:
EXCLUSIVES / RESTRICTIONS:
ESTOPPEL CERTIFICATE:
ADDITIONAL INFORMATION:
Tenant shall not operate any similar business within a radius of 5 miles from the shopping center
N/A
Houston Xcell Communications, Inc
Husam Mahomoud
N/A
N/A
Tenant shall provide an estoppel certificate within 5 days upon written request by the Landlord.
N/A
EAST TOWN SHOPPING CENTEREDGE REALTY CAPITAL MARKETS 28
LEASE ABSTRACTS
TENANT:
SQUARE FOOTAGE:
SPECIFIC USE:
DOCUMENTATION:
RENT COMMENCEMENT DATE:
LEASE EXPIRATION DATE:
TERM:
SECURITY DEPOSIT:
Period Per Month Annual PSF
April 15, 1996 - April 30, 2001 $1,819.63 $21,835.56 $3.52
May 1, 1997 - April 30, 1997 $1,940.63 $23,287.56 $3.75
May 1, 1998 - April 30, 1999 $2,070.00 $24,840.00 $4.00
May 1, 1999 - April 30, 2000 $2,199.38 $26,392.56 $4.25
May 1, 2000 - April 30, 2001 $2,328.75 $27,945.00 $4.50
Extension Terms
Term 1: May 1, 2001 - April 30, 2002 $2,070.00 $24,840.00 $4.00
Term 1: May 1, 2002 - April 30, 2003 $2,121.75 $25,461.00 $4.10
Term 1: May 1, 2003 - April 30, 2004 $2,173.50 $26,082.00 $4.20
Term 1: May 1, 2004 - April 30, 2005 $2,225.25 $26,703.00 $4.30
Term 1: May 1, 2005 - April 30, 2006 $2,282.18 $27,386.16 $4.41
Term 2: May 1, 2006 - April 30, 2011 $2,758.28 $33,099.36 $5.33
Term 3: May 1, 2011 - April 30, 2016 $2,758.28 $33,099.36 $5.33
Term 4: May 1, 2016 - April 30, 2019 $2,758.28 $33,099.36 $5.33
Term 4: May 1, 2019 - April 30, 2021 $2,898.00 $34,776.00 $5.60
RENEWAL OPTION(S):
CAM PAYMENTS:
INSURANCE PAYMENTS:
RE TAX PAYMENTS:
UTILITIES:
TENANT MAINTENANCE:
LANDLORD MAINTENANCE:
PERCENTAGE RENT:
BASE RENT:
Tenant shall reimburse Landlord its pro rata share of all Insurance expenses.
Tenant shall reimburse Landlord its pro rata share of all Real Estate Tax expenses.
Tenant shall pay for all water, sanitary sewer, gas, electricity and other utilities used in the premises.
Tenant shall maintain the leased premises in a clean, attractive condition and in good repair and shall also keep adjacent sidewalks clean.
Landlord shall repair any damage to the roof, structural portions of the leased premises and damage to any utility lines located outside the leased premises.
N/A
April 30, 2021
5 years + 5 years + 5 years + 5 years + 5 years
None.
None.
Tenant shall reimburse Landlord its pro rata share of all CAM expenses and an administrative fee equal to 15% of such expenses. The increase in CAM expenses is capped at 4% per year.
April 15, 1996
Renter's Choice
6,210
Premises shall be used for the operation of a rent-to-own business offering.
Lease dated December 31, 1995, renewal letter dated January 23, 2001, first amendment dated March 9, 2001, second lease amendment dated January 13, 2011 and lease extension and modification agreement dated February 25, 2016.
EAST TOWN SHOPPING CENTEREDGE REALTY CAPITAL MARKETS 29
LEASE ABSTRACTS
BREAKPOINT: N/A
EXECUTOR:
GUARANTOR:
ASSIGNEE:
CO-TENANCY/TERMINATION:
EXCLUSIVES / RESTRICTIONS:
ESTOPPEL CERTIFICATE:
ADDITIONAL INFORMATION:
Tenant shall provide an estoppel certificate upon written request by the Landlord.
N/A
N/A
Renter's Choice, Inc
N/A
N/A
N/A
EAST TOWN SHOPPING CENTEREDGE REALTY CAPITAL MARKETS 30
EDGE Realty Capital Markets exclusively presents the
listing of East Town Shopping Center (“Property”) for your
acquisition. The owner is offering for sale the Property
through its exclusive listing with the team.
EDGE Realty Capital Markets and owner provides the
material presented herein without representation or
warranty. A substantial portion of information must be
obtained from sources other than actual knowledge and
not all sources can be absolutely confirmed. Moreover, all
information is subject to changes by the parties involved as
to price or terms before sale, to withdrawal of the Property
from the market, and to other events beyond the control of
EDGE Realty Capital Markets or owner. No representation
is made as to the value of this possible investment other
than hypothetical scenarios. It is encouraged that you or
any of your affiliates consult your business, tax and legal
advisors before making a final determination of value or
suitability of the Property for acquisition.
As a condition of EDGE Realty Capital Markets’ consent
to communicate the information contained herein–as
well as any information that may be communicated to you
subsequently either verbally or in writing by EDGE Realty
Capital Markets, owner or agents of either of these parties
regarding the Property–it is required that you agree to
treat all such information confidentially.
DISCLAIMER
PRIMARY CONTACTS:
SECONDARY CONTACTS:
JOSH JACOBS
Principal [email protected]
713.900.3001
BURDETTE HUFFMAN
Principal [email protected]
713.900.3024
BILL PYLE
Vice President [email protected]
713.900.3018
KEVIN HOLL AND
Senior Vice President [email protected]
713.900.3025
JONATHAN WALKER, CCIM
Maestri-Murrell, Inc [email protected]
225.810.3294
EAST TOWN951 3RD AVENUE / LAKE CHARLES, LA 70601
As of April 11, 2017
SHOPPING CENTER
CONFIDENTIALOFFERING MEMORANDUM
5444 Westheimer Rd, Suite 1650Houston, Texas 77056
T 713.900.3000edge-cm.com