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E X E C U T I V E S U M M A R Y
P E A R L A N D , T X
HFF L.P. is pleased to offer a 100% fee-simple interest in Sunrise Lake (the “Property”), a 74,612 square foot, recently renovated mixed-use office and retail property featuring a significant medical tenant base (±50% of NRA) at an easily accessible location within Houston’s fastest-growing suburb, Pearland, TX. Sunrise Lake presents an investor the opportunity to acquire a high-quality office and retail complex at a compelling basis in an amenity-rich market. With 15% of the rentable square feet remaining to be leased, and a proven ability to push base rental rates, the Property provides substantial NOI growth potential while providing a compelling “in-place” yield.
Recently renovated, mixed-use property encompassing 50,000 square feet of office and 24,500 square feet of retail, which is 86% leased to a diverse array of tenants underpinned by a significant medical component.
• Sunrise Lake was delivered in 2006 and underwent extensive renovations in 2014 including new roofs on each building, wet seal of all windows and doors, LED lighting upgrade, and new security and access systems.
• The Property is 86% leased with 3.6 years of weighted average remaining lease term and presents an opportunity to add value through the lease-up of current and future vacant space, with rents that are 12.9% below market.
• 50% of the leased NRA is occupied by healthcare tenants that include a dialysis center, regional blood bank and private physicians, which desire an easily accessible and visible location at the heart of Pearland’s booming population growth.
Located less than a 30 minute drive from the Texas Medical Center, the world’s largest medical complex, the healthcare industry is a primary economic driver for Pearland, creating jobs for a large portion of the population and fostering numerous research, treatment and healthcare support facilities.
• A higher concentration of Texas Medical Center employees reside in Pearland zip codes than any other area of Greater Houston, and currently approximately 13% of Pearland residents work in the health care sector.
• Numerous healthcare providers have established locations along Pearland’s primary thoroughfare, State Highway 288, creating a rent premium for medical space and establishing Sunrise Lake as a viable alternative for tenants seeking modern yet cost-effective space, located proximate to Pearland’s healthcare hub.
• Many of Pearland’s top employers are leading healthcare providers, including Kelsey-Seybold, Memorial Hermann (Houston’s largest not-for-profit health system), Pearland Medical Center (an HCA hospital), as well as several medical research and biotech companies.
Prime location along the primary east/west thoroughfare of Pearland, TX, Houston’s fastest-growing suburb and one of the fastest growing cities in Texas, with unmatched demographics and numerous surrounding amenities.
• Sunrise Lake’s location along Broadway St. provides direct access to State Highway 288, which connects Pearland to some of Houston’s primary economic drivers, including the Texas Medical Center and Houston’s Central Business District.
• Pearland boasts some of the strongest demographics in the Houston MSA with a median household income of $105,806 and population growth of 219% since 2000.
• Pearland’s tremendous growth and enviable demographics has led to a significant influx of retail, multi- and single-family residential, and healthcare developments, many of which are less than a ten-minute drive from Sunrise Lake.
I N V E S T M E N T H I G H L I G H T SS U N R I S E L A K E
EXECUTIVE SUMMARY | 2
ADDRESS: 9307 & 9223 Broadway StreetPearland, TX 77584
LOCATION: NE Corner of Broadway St & Sunrise BlvdYEAR BUILT: 2006 (2014 Renovation)PROPERTY SIZE: 74,612 SFLAND AREA: 5.29 Acres (230,432 SF)PARKING STALLS: 320 Total StallsPARKING RATIO: 4.29/1,000 SFIN-PLACE OCCUPANCY: 85.90%TRAFFIC COUNT: 32,849 Broadway St
PROPERTY OVERVIEW FINANCIAL OVERVIEW
TENANT SUMMARY
PORTFOLIO TENANT MIX NOI GROWTH LEASE EXPIRATION
I N V E S T M E N T H I G H L I G H T SS U N R I S E L A K E
EXECUTIVE SUMMARY | 3
45%Healthcare
10%Education
9%Fitness & Beauty
3%Financial
3%Restaurant
20%Legal & Govenment
10% Other
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9Year 100.0%
20.0%
40.0%
60.0%
80.0%
100.0%
-
5,000
10,000
15,000
20,000
25,000
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
SF Expiring Cumulative % Expiring
SUITE TENANT SQUARE FEET % OF PROPERTYA-101 Great American Title 3,149 4.2%A-103 Edward Jones & Co. 1,525 2.0%A-200 State of Texas 9,500 12.7%A-201 State of Texas 1,608 2.2%A-225 Ameriprise Financial 395 0.5%A-303 Lymphedema Institute 3,590 4.8%A-309 Rome Arata Baxley 1,748 2.3%A-323 Dr. Daniela Costa 1,846 2.5%A-333 MBS Cloud Hosting 2,695 3.6%A-401 St. Josephs Holdings/STAT 2,035 2.7%A-407 M & S Logistics 6,269 8.4%B-101 Painting with a Twist 2,472 3.3%B-103 Houston Asthma & Allergy 3,490 4.7%B-107 Westside Veterinary Hospital 1,768 2.4%B-109 Dialyspa 8,736 11.7%B-117 Zero Training 2,059 2.8%B-119 Gulf Coast Regional Blood Cent 4,446 6.0%C-125 Eric Wright 1,070 1.4%C-130 Chick-Fil-A-Storage 517 0.7%C-133 Annastacia Hair Salon 1,086 1.5%C-150 United Fitness 2,483 3.3%C-200 Chick-Fil-A 1,375 1.8%A-317 Management Office 119 0.2%A-319 Vending Machine Room 114 0.2%TOTAL OCCUPIED 64,095 85.9%A-210 Available 1,953 2.6%A-307 Available 980 1.3%A-390 Available 1,954 2.6%B-105 Available 1,608 2.2%C-201 Available 4,022 5.4%TOTAL AVAILABLE 10,517 14.1%TOTAL PROPERTY 74,612 100.0%
IN-PLACE NOI: $822,223WTD. AVG. IN-PLACE RENT: $14.87PERCENT BELOW MARKET: 12.9%WTD. AVG TENURE: 4.7 YearsWTD. AVG. REMAINING LEASE TERM: 3.5 YearsROLLOVER SUMMARY: WITHIN 3 YEARS OF OPERATION: 36.0% of NRA WITHIN 5 YEARS OF OPERATION: 67.9% of NRA
HOME VALUE: $200-$375K
HOME VALUE: $200-$375K
PEARLAND LAKESHOME VALUE:
$230-$460K
PEARLAND LAKESHOME VALUE:
$230-$460K
BROADWAY ST
BROADWAY ST
SUNRISE LAKESHOME VALUE:
$210-$290K
SUNRISE LAKESHOME VALUE:
$210-$290K
FUTURECOMMERCIAL
FUTURECOMMERCIAL
197 UNITS
312 UNITS
472 UNITS
George BushPark
LakeHouston
State Park
WilliamP. HobbyAirport
George BushIntercontinentalAirport
HARRISCOUNT Y
LIBER T YCOUNT Y
FOR T BENDCOUNT Y
MONTGOMERYCOUNT Y
BRAZORIACOUNT Y
GALVESTONCOUNT Y
Greenspoint
The Woodlands
69
69
69
LakeHouston
San Jacinto
Bay
SheldonReservoir
GalvestonBay
BayportTerminal
SmithersLake
ClearLake
Barbour’s CutTerminal
EnergyCorridor
The GalleriaUptown District
Westchase
Texas MedicalCenter
Texas MedicalCenter Port of HoustonPort of Houston
NASANASA
PetrochemicalPetrochemical
CBDCBD
AIRPORT BLVD
AIRPORT BLVDCULL
EN B
LVD
CULL
EN B
LVD
SCO
TT S
TSC
OTT
ST
FARM
TO
MAR
KET
521
FARM
TO
MAR
KET
521
FARM TO MARKET RD 2234FARM TO MARKET RD 2234
FARM
TO
MAR
KET
521
FARM
TO
MAR
KET
521
ALM
EDA
RD
ALM
EDA
RD
E OREM DRE OREM DR
BELLFORT STBELLFORT ST
S LOOP W FWYS LOOP W FWY
S PO
ST O
AK
RDS
POST
OA
K RD
S PO
ST O
AK
RDS
POST
OA
K RD
S MAIN STS MAIN ST
S M
AIN S
T
S M
AIN S
T
S WILLOW DR
S WILLOW DR AIRPORT BLVD
AIRPORT BLVD
ALMEDA GENOA RDALMEDA GENOA RD
SAM HOUSTON TOLLWAYSAM HOUSTON TOLLWAY
SAM HOUSTON TOLLWAYSAM HOUSTON TOLLWAY
W FUQUA STW FUQUA ST
W OREM DRW OREM DR
SAM HOUSTON TOLLWAY
SAM HOUSTON TOLLWAYM
YKAWA RD
MYKAW
A RD
MYKAW
A RD
MYKAW
A RD
HA
RKEY RDH
ARKEY RD
MA
NVEL RD
MA
NVEL RD
COUNTY RD 91COUNTY RD 91
COUNTY RD 101COUNTY RD 101
SCARSDALE BLVD
SCARSDALE BLVD
DIXIE FARM RD
DIXIE FARM RD
1959 RD
1959 RD
BEAMER RD
BEAMER RD
BEAMER RD
BEAMER RD
GULF FWY
GULF FWY
GULF FWY
GULF FWY
OLD GALVESTON RD
OLD GALVESTON RD
SUNSET DR
SUNSET DR
PEA
RLA
ND
SIT
ES R
DPE
ARL
AN
D S
ITES
RD
N MAST
ERS S
T
N MAST
ERS S
T
VETERAN
S RDVETERA
NS RD
S FORK DRS FORK DR
BAILEY RDBAILEY RD
COU
NTY RD
90CO
UN
TY RD 90
SOU
TH FW
YSO
UTH
FWY
SOUT
H FW
Y
SOUT
H FW
Y
SOU
TH FW
YSO
UTH
FWY
N M
AIN
STN
MA
IN ST
E BROADWAY ST
E BROADWAY ST
W BROADWAY STW BROADWAY ST
TRIN
ITY
BAY
DR
TRIN
ITY
BAY
DR
ALVIN-SUGARLAND RD
ALVIN-SUGARLAND RD
COU
NTY RD
48CO
UN
TY RD 48
POST STPOST ST
S MAIN ST
S MAIN ST
PEARLAND PKWY
PEARLAND PKWY
MAIN ST
MAIN ST
ALMEDA GENOA RDALMEDA GENOA RD
SPENCER HWYSPENCER HWY
AVENUE 1AVENUE 1 VISTA RDVISTA RD
FAIRMONT PKWYFAIRMONT PKWY
S SHAVER ST
S SHAVER ST
MO
NRO
E RD
MO
NRO
E RD
S WAYSID
E DR
S WAYSID
E DR
TELE
PHO
NE
RDTE
LEPH
ON
E RD
TELE
PHO
NE
RDTE
LEPH
ON
E RD
FARM
TO M
ARKET 865
FARM
TO M
ARKET 865
HO
OPER RD
HO
OPER RD
KIRB
Y D
RKI
RBY
DR
FARM
TO M
ARKET 865
FARM
TO M
ARKET 865
W PARKWOOD AVE
W PARKWOOD AVE
SOUTH PARK
SHERRY DELL
BROOKSIDEVILLAGE
GREEN TEETERRACE
TARRYTOWN
BURKEMEADOW
GONZALESPLACE
HOIDALE &COFFMAN
MORNINGSIDEPLACE
BRUNSWICKLAKES
BRUNSWICKMEADOWS
SUNNYSIDE
ASTRODOME
GRIDIRON
MYERLAND
WESTBURY
CENTRALSOUTHWEST
FOXSHIRENORTH
ALMEDA
FRUITELAND
BLUEBONNETACRES
KELLY’SCORNER
MCLNTYREACRES
FRESNO
MAXWELLHEIGHTS
NIAGARASUBDIVISION
MARBILLESTATES RIDGEWOOD
ESTATES
ARCOLA
FENNS
William P.Hobby Airport
WildcatGolf Club
Houston-SouthwestAirport
Flyin-BAirport
Skyway ManorAirport
PearlandRgnl
SOUTHHOUSTON
PASADENA
PEARLAND
FRIENDSWOOD
288
6
288
35
35
35
35
3
288
45
45610610
90
L O C A T I O N M A P SS U N R I S E L A K E
EXECUTIVE SUMMARY | 5
S I T E P L A NS U N R I S E L A K E
EXECUTIVE SUMMARY | 6
9307BROADWAY
9223BROADWAY
(OFFICE)
9223BROADWAY
(RETAIL)
B R O A D W AY S T R E E T
SU
NR
I SE
BO
UL E
VAR
D
1 M i l e t o
Superb visibility and access with a signalized intersection.
PEARL ANDS TOP 10 EMPLOYERS
COMPANY EMPLOYEES INDUSTRY
Pearland ISD 2,518 Education
Kelsey-Seybold 827 Healthcare
City of Pearland 735 Government
Alvin ISD 635 Education
Memorial Hermann 450 Healthcare
Merit Medical 330 Manufacturing
Pearland Medical Center 300 Healthcare
Dover Energy 212 Energy
Kemlon 200 Manufacturing
Third Coast Terminals 185 Business Services
M A JOR C OR P OR AT E R E L OCAT ION S/ E X PA N S ION S T O P E A R L A ND S INCE 2 010
HEALTH CARE
MANUFACTURING
ENGINEERING
28.8%POPULATION GROWTH
(2010-2017)
125,198POPULATION
23.5%JOB GROWTH(2010-2017)
56,317JOBS
P E A R L A N D FAC T S A N D F I G UR E S
#3FASTEST-GROWING ECONOMY
IN THE U.S.
L O C A T I O N O V E R V I E WS U N R I S E L A K E
EXECUTIVE SUMMARY | 7
1 MILE R ADIUS OF SUNRISE L AKE
Businesses 580
Employees 4,602
Health Care & Social Assistance 22.8%
Hospitality & Food Service 18.8%
Retail 13.7%
Real Estate, Renting, Leasing 9.1%
Education Services 7.9%
105,806
82,22990,845
58,64563,802
59,206 60,336
40,000
50,000
60,000
70,000
80,000
90,000
100,000
110,000
Pearland Fort BendCounty
Houston MSA USA
MEDIAN HH INCOME: 2017
1,497 6,444 13,248 18,92737,640
91,252
111,665125,198
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
1950 1960 1970 1980 1990 2000 2010 2020
PEARLAND HISTORICAL POPULATION
14,30915,567
17,11517,552
19,79019,468
20,58422,585
23,55226,479
27,80629,364
10,000
15,000
20,000
25,000
30,000
35,000
2004 2006 2008 2010 2012 2014 2016 2018
GROWTH IN PAYROLL JOBS FOR ZIP CODES 77584 AND 77581
FROM 2010 TO 2017, PEARLAND RANKED AS THE 10TH FASTEST GROWING CITY IN THE U.S., COMPARED TO OTHER CITIES WITH A
POPULATION OF 50,000 OR MORE IN 2010.
L O C A T I O N O V E R V I E WS U N R I S E L A K E
EXECUTIVE SUMMARY | 8
P R O P E R T Y P H O T O G R A P H YS U N R I S E L A K E
EXECUTIVE SUMMARY | 9
NATION-LEADING HOUSTON MSA ECONOMY
HOUSTON'S NATION-LEADING POPUL ATION GROW TH
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
2013 2014 2015 2016 2017 2018Projected
2019Projected
HOUSTON'S SURGING JOB GROW TH
-20,000
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
2013 2014 2015 2016 2017 2018Projected
2019Projected
1 0
E C O N O M I C O V E R V I E WS U N R I S E L A K E
Houston Ranked 3rd Nationally in Job Growth
INVESTMENT ADVISORY
H. DAN MILLER, CCIM, SIOR
Sr. Managing Director
T. (713) 852-3561
JOHN INDELLI
Director
T. (713) 852-3407
WESLEY HIGHTOWER
Real Estate Analyst
T. (713) 852-3495
BRYAN STRODE
Research Analyst
T. (713) 212-6551
FINANCING INQUIRIES
MATTHEW PUTTERMANDirector
T. (713) 852-3524
Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp a Texas licensed real estate broker (“HFF”).
©2018 Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 25 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.
HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.
9 Greenway Plaza, Suite 700Houston, Texas 77046T. (713) 852-3500F. (713) 527-8725hfflp.com
