Family Dollar 2913 W Orem Dr Houston, TX - …huttonproperty.site/wp-content/uploads/2017/04/Familly-Dollar-Orem... · Dollar Tree merger with Family Dollar now creates a combined

F a m i l y D o l l a r2 9 1 3 W O r e m D r, H o u s t o n , T X 7 7 0 4 5O F F E R I N G M E M O R A N D U M

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Representative Photo

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E XC LU S I V E LY L I S T E D BY

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JOSH BISHOPVP & Director

[email protected] (214) 692-2289MOB (315) 730-6228LIC # 01940394

CHAD KURZSVP & National Director


KYLE MATTHEWSBroker of Record

LIC # 678067

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C O N T E N T S


4 INVESTMENT OVERVIEWInvestment Highl ights

6 FINANCIAL ANALYSISExecut ive SummaryAnnual ized Operat ing Data

8 TENANT OVERVIEWFami ly Dol lar

1 0 PROPERTY OVERVIEWThe Offer ingSi te Descr ipt ionParcel MapTenant MapRegional Map

1 4 AREA OVERVIEWDemographics

I N V E S T M E N T O V E R V I E W

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M A T T H E W S R E T A I L A D V I S O R S | 5

I n v e s t m e n t H i g h l i g h t s

• Ideal 1031 exchange property

• Brand new 2016 construction

• 15-Year absolute NNN lease; Zero management responsibility

• 10% rent increase in year 11 of the base term; rent increases are an excellent hedge against inflation

• Strong average traffic counts of over 17,000 vehicles daily on Orem Drive

• 3-mile demographics in excess of 67,280 residents

• 5-mile demographics in excess of 273,750 residents

• Estimated population growth over nearly 12% over the next 5 years

• Houston is the most populous city in the state of Texas and fastest growing and the fourth most populous city in the United States

• Family Dollar was recently acquired by Dollar Tree, Inc. and is now considered to be the nation’s “largest small-box discount retailer” with more than 13,000 locations nationwide

• Standard & Poor’s credit rating of BB+

F I N A N C I A L A N A L Y S I S




F a m i l y D o l l a r2 9 1 3 W O r e m D r, H o u s t o n , T X 7 7 0 4 5List Price ............................................................................................$2,100,684

CAP Rate - Current .................................................................................. 5.85%

Gross Leasable Area ...................................................................... ± 8,353 SF

Lot Size ...........................................................................................± 1.09 Acres

Year Built ....................................................................................................... 2016

Annualized Operating DataMonthly Rent Annual Rent Rent/SF Cap Rate

Current - 3/31/2025 $10,240.83 $122,890.00 $14.71 5.85%

4/1/2025 - 3/31/2030 $11,264.92 $135,179.00 $16.18 6.44%

Option 1 $12,391.41 $148,696.90 $17.80 7.08%

Option 2 $13,630.55 $163,566.59 $19.58 7.79%

Option 3 $14,993.60 $179,923.25 $21.54 8.56%

Option 4 $16,492.96 $197,915.57 $23.69 9.42%

Option 5 $18,142.26 $217,707.13 $26.06 10.36%

Option 6 $19,956.49 $239,477.84 $28.67 11.40%

Tenant Summary

Tenant Trade Name Family Dollar

Type of Ownership Fee Simple

Lease Guarantor Corporate

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 15 years

Rent Commencement Date 7/16/2016

Lease Expiration Date 3/31/2030

Term Remaining on Lease ± 13 years

Increases 10% increase in year 11 & in options

Options Six (6), Five (5) Years

T E N A N T O V E R V I E W




Property Name Family Dollar

Property Type Net Leased Discount Store

Parent Company Trade Name Dollar Tree, Inc. (NASDAQ: DLTR)

Ownership Public

Credit Rating (S&P) BB+

Revenue $10.49 B

Net Income $285 M

No. of Locations ± 8,000

No. of Employees ± 60,000

Headquartered Matthews, North Carolina

Website www.familydollar.com

Year Founded 1986

TENANT OVERVIEW

When it comes to getting value for everyday items for the entire family in an easy to shop, neighborhood location, Family Dollar is the best place to go. One of the nation’s fastest growing retailers, Family Dollar offers a compelling assortment of merchandise for the whole family ranging from household cleaners to name brand foods, from health and beauty aids to toys, from apparel for every age to home fashions, all for everyday low prices. While shoppers can find many items at $1 or less, most items in the store are priced below $10, which makes shopping fun without stretching the family budget.

GEOGRAPHIC OUTREACH

Family Dollar serves families in more than 8,000 neighborhoods in 46 states. Texas is its largest market with 1,027 stores, followed by Florida with 584 stores. The Dollar Tree merger with Family Dollar now creates a combined organization with sales exceeding $19 billion annually with more than 13,600 stores across 48 states and five Canadian Provinces. The merger has allowed Family Dollar to grow offering broader, more compelling merchandise assortments, with greater values, to a wider array of customers.

STRATEGY

Family Dollar offers a compelling mix of merchandise for the whole family. Ranging from an expanded assortment of refrigerated and frozen foods and health and beauty items to home décor and seasonal items, Family Dollar offers the lowest possible price, the name brand and quality private-brand merchandise customers need and use every day.

P R O P E R T Y O V E R V I E W

1 0 | F a m i l y D o l l a r - H o u s t o n , T X


M A T T H E W S R E T A I L A D V I S O R S | 1 1

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T h e O f f e r i n gProperty Name Family Dollar

Property Address 2913 W Orem Dr

Houston, TX 77045

Site DescriptionNumber of Stories One

Year Built 2016

Gross Leasable Area (GLA) ± 8,353 SF

Lot Size ± 1.09 Acres (47,480 SF)

Type of Ownership Fee Simple

Parking ± 35 Surface Spaces

Parking Ratio 4 : 1,000 SF

Landscaping Professional

Topography Generally Level

ConstructionFoundation Concrete

Framing Steel

Exterior Block / Metal

Parking Surface Asphalt

Roof Slightly Pitched

P a r c e l M a p

Orem Dr ± 17,000 ADTFM

521 R

d ± 22,00

0 A

DT

Te n a n t M a p


SUBJECT PROPERTY


R e g i o n a l M a p

SUBJECT PROPERTY


A R E A O V E R V I E W

Fastest-Growing City#1

Most Populous City in the U.S.4 th


HOUSTON, TEXASThe city of Houston, Texas is located in southeastern part of the state near the Gulf of Mexico. It is the most populous city in Texas and the fourth most populous city in the United States. Known as the Bayou City for its waterway system, Houston thrives because it is a great place to work and a great place to live. Alive with energy and rich in diversity, Houston is a dynamic mix of imagination, talent and first-class attractions that makes it a world-class city. It exudes a cosmopolitan and down-home vibe while being nicknamed the “Space City”. With more than 2.2 million residents, Houston attracts visitors and transplants with a wonderful mix of world-class arts, booming business, pro sports and award-winning cuisine.

BUSINESS CLIMATEHouston is a city of endless possibilities: Its history has been marked with achievements from the first word heard from the moon to the first artificial heart transplant. A distinctly favorable business climate promotes trade, commerce, industry and economic growth in the Houston region. Many businesses recognize the allure of all Houston has to offer; There are twenty-five Fortune 500 companies that call the Energy Capital of the World home. Once dominated by oil-related jobs, Houston’s economy has diversified as new, core industries join energy in the regional employment mix.

With a strong infrastructure and a highly-trained workforce, Houston has the resources to support its growing industries, namely energy, health care, nanotechnology, aerospace, and information technology. The Port of Houston, one of the region’s greatest assets, ranks as the nation’s largest port in international tonnage and second in total tonnage. It is an economic engine that produces jobs and economic prosperity for the local Houston and state economy. Throughout its history, whenever the port has grown, Houston has also grown, showing that it has been instrumental in the city’s development as a center of international trade.

Its richly-diverse pool of skilled, multilingual, multicultural workers is one of the city’s key advantages that makes it an attractive city for relocating and expanding businesses. Nearly 25 percent of all adults have completed four years of college, surpassing the national average, while the median age is three years younger than the national average. This diverse workforce possesses a variety of skills and occupations ranging from medical professionals and engineers to production managers and accountants. Aeronautic research is unsurpassed at NASA headquarters and Texas Medical Center remains the largest in the world with 47 highly lauded research and treatment institutions.

M A J O R E M P L O Y E R S

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3

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D e m o g r a p h i c s

Population 1 Mile 3 Mile 5 Mile2022 Projection 17,306 74,168 298,956

2017 Estimate 15,470 67,289 273,759

2010 Census 12,567 56,493 234,632

Growth 2017 - 2022 11.87% 10.22% 9.20%

Growth 2010 - 2017 23.10% 19.11% 16.68%

Households 1 Mile 3 Mile 5 Mile

2022 Projection 4,917 23,814 109,109

2017 Estimate 4,418 21,569 99,941

2010 Census 3,644 18,035 85,890

2000 Census 1,830 12,379 66,416

Growth 2017 - 2022 11.30% 10.41% 9.17%

Income 1 Mile 3 Mile 5 Mile

2017 Est. Average Household Income

$62,731 $60,399 $79,718


Houston maintains a global position as an international trade leader with economic and cultural ties reaching across the globe. As one of only five cities in the world connecting to all six inhabited continents, Houston is a global manufacturing and logistics hub and an international finance center. Indicating the city’s strong presence in the overseas marketplace, more than 3,440 area firms, foreign government offices and nonprofit organizations are involved in international business. Furthermore, an approximate 800 Houston firms report foreign ownership and 430 Houston companies have offices abroad in 144 countries.

From the Port of Houston to the Houston Airport System, the city has an impressive array of logistical and distribution channels capable of meeting the demands of today’s fast-paced market. Added to the region’s central geographic location, Houston has easy access to the global marketplace, making it an ideal place for businesses looking to engage in international business.

Texas is the largest exporter in the United States and Houston has 17 sister-city relationship promoting business opportunities across Africa, Asia, Australia, Europe and the Americas.

HOUSTON AS A GLOBAL CITY

2017 Est . Average Household Income

$80,936

Projected Populat ion Growth 2017 - 2022

7.10%2017 Est . Populat ion

2.6 mi l l ion

Characterized by unprecedented growth and opportunity and a limitless future, Houston has one of the youngest, most innovative and diverse populations in the world. Implemented by the Greater Houston Partnership, a coalition of over 1,000 companies, and its the City With No Limits campaign has catalyzed an economic resurgence. Meant to enhance Houston’s image and attract talent to the community, the City With No Limits campaign positions Houston as a city with an innovative and growing business community as well as a dynamic cultural and livable city with an high quality of life.

Manufacturing is making a comeback in the local economy, which can largely be attributed to the City With No Limits. From robotics and automated solutions that are revolutionizing the energy industry to NASA-backed technology that is driving life sciences and medical advancements into new frontiers, Houston is the right place for manufacturers to grow and prosper.

People move to Houston from all over the world to take advantage of the abundant opportunities the region provides: Houston is the place where hard work can achieve the American Dream.

THE CITY WITH NO LIMITS

Port of Houston Annual Economic

Impact

$250 Bi l l ion


Houston’s downtown has been revitalized with numerous clubs, professional sports facilities and musical entertainment that has helped bring nightlife back to downtown. As one of the few U.S. cities with resident companies in theater, ballet, symphony and opera, Houston’s Theater District, located in downtown, offers visitors and residents alike exciting performances all season long. The city also shows its devotion to the arts through a full complement of art museums and critically acclaimed galleries in its Museum District.

Countless cutting-edge chefs have made a home in Houston, where diners eat out more than residents of any other city. There are more than 10,00 restaurants in the Houston area with culinary choices that represent more than 70 countries and American regions. This stylish dining scene only provides a glimpse of Houston’s epicureans offerings, a fact that the city’s culinary masterminds intent to prove with the Houston Culinary Tours.

DOWNTOWN HOUSTON

SPACE CENTER HOUSTON

THE GALLERIA

Space Center Houston is the official visitor center of the Lyndon B. Johnson Space Center—the National Aeronautics and Space Administration’s (NASA) center for human spaceflight activities. Along with the Northrop Grumman Theater and special tours the center is also home to many space artifacts and hardware including the Apollo 17 command module, the Saturn V and more.

As the largest mall in Texas and ninth largest in the country, the Galleria is an upscale mixed-use urban development centrally located in the Uptown District of Houston. With 35 million annual visitors, The Galleria has been named the most visited attraction in Houston. On top of an ice skating rink, the mall holds over 375 stores and is currently anchored by Neiman Marcus, Nordstrom, Saks Fifth Avenue and Macy’s.

MUSEUM OF FINE ARTS

The Museum of Fine Arts located within the Houston Museum District, is one of the largest museums in the United States. The permanent collection of the museum spans more than 6,000 years of history with approximately 64,000 works from six continents. Each year, 1.25 million people benefit from the museum’s programs, workshops and resource centers.

Houston’s Downtown Aquarium is a public aquarium and restaurant located that was developed from two Houston landmarks: Fire Station No. 1 and the Central Waterworks Building. It houses over 200 species of aquatic animals in 500,000 gallons of aquariums. The complex includes two restaurants, a bar, and banquet facilities.DOWNTOWN AQUARIUM

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Family Dollar located at 2913 W Orem Dr Houston, TX 77045 (“Property”) . I t has been prepared by Matthews Retai l Advisors. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T

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F a m i l y D o l l a r2 9 1 3 W O r e m D r, H o u s t o n , T X 7 7 0 4 5

O F F E R I N G M E M O R A N D U M

JOSH BISHOPVP & Director


CHAD KURZSVP & National Director


KYLE MATTHEWSBroker of Record

LIC # 678067

11-2-2015

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 the 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:

ᴑ that the owner will accept a price less than the written asking price;ᴑ that the buyer/tenant will pay a price greater than the price submitted in a written offer; andᴑ 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.

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.

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Designated Broker of Firm License No. Email Phone

Licensed Supervisor of Sales Agent/Associate

License No. Email Phone

Licensed Broker /Broker Firm Name or Primary Assumed Business Name

License No. Email Phone

Regulated by the Texas Real Estate Commission Information available at www.trec.texas.gov IABS 1-0

Date Buyer/Tenant/Seller/Landlord Initials

Sales Agent/Associate’s Name License No. Email Phone

Kyle Matthews 678067 [email protected] 866-889-0550

Kyle Matthews

Kyle Matthews

678067

678067

[email protected]

[email protected]

866-889-0550

866-889-0550

Documents

Family Dollar 2913 W Orem Dr Houston, TX - …huttonproperty.site/wp-content/uploads/2017/04/Familly-Dollar-Orem... · Dollar Tree merger with Family Dollar now creates a combined