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510 Gray Street Houston, TX
CONFIDENTIAL OFFERING MEMORANDUM
MIDTOWNCROSSING
5343 Spring Valley Road, Dallas, TX 75254Real Estate Investment Services → Representation → Advisory Services → www.EVTRS.com
NET OPERATING
INCOME:$268,438
GROSS LEASEABLE
AREA:14,544 SF
OCCUPANCY: 100%
PRICE PSF: $276.91
5 YEAR IRR: 9.45%
10 YEAR IRR: 11.19%
PRO-FORMA CASH ON
CASH RETURN:6.29%
TOTAL 2020 YIELD
INCLUDING PRINCIPAL:9.65%
510 Gray StreetHouston, TX
EXECUTIVE SUMMARY
EVERTRUST REALTY ADVISORS has been retained by the
owners to EXCLUSIVELY market Midtown Crossing (the
“Property”) to qualified investors. The opportunity presented is to
acquire a Class A, 100% leased retail plaza, located right on the
border of Midtown and Downtown Houston, Texas.
Midtown Crossing has a highly coveted location at the SE corner
of Gray Street and Brazos Street, within of of the most
established, infill areas of the city known as Midtown. Midtown
Crossing is conveniently located near many of the cities busiest
freeways including interstate 45, Highway 59 and Highway 69.
The property has an ideal mix of national, regional and local
retailers. The Property is subject to a ground lease with an
expiration date of February 28, 2034 with four 5-year renewal
options. The acquisition of Midtown Crossing provides investors
with the opportunity to acquire an exceptionally located retail
center with a secure income stream.
MIDTOWNCROS S ING
OFFERING SUMMARY
PRICE: $4,095,000
CAP RATE: 6.56%
5343 Spring Valley Road, Dallas, TX 75254Real Estate Investment Services → Representation → Advisory Services → www.EVTRS.com
EXECUTIVE SUMMARY
Midtown Crossing is 100 % occupied by a dynamic mix of national, regional and
local retailers including Buffalo Wild Wings, Gyu-Kaku Japanese BBQ, Which
Wich, One Dim Sum and River Oaks Cleaners.
Midtown retail is characterized by small freestanding developments. Retailers are
typically local boutiques and restaurants/bars, as well as the imminent arrival of the
areas first Whole Food’s. The restaurant and service tenants ideally cater to the
surrounding office and multifamily users by being a convenient, walkable
destination for residents and employees. Midtown has a high density of apartment
units, which is great for all tenants in the property. Retail demand is further
increasing as 3,000 more units are being developed in Midtown by 2022.
Midtown Crossing has an infill location adjacent to downtown in Midtown. Real
Estate in this exclusive area benefits from high barriers of entry to limit future
competition. The scarcity of available land for new developments and retail
developers being outbid by multifamily and office further limit competition.
❖ Stable Investment – Weighted Average Lease Term of 3.99 Years
❖ High Barriers to Entry due to Construction Pricing and Market Rents
❖ Plenty of Parking Available
❖ 5,000 Apartment Units in Midtown
❖ 3,000 Apartment Units will come online by 2022
5343 Spring Valley Road, Dallas, TX 75254Real Estate Investment Services → Representation → Advisory Services → www.EVTRS.com
PROPERTY DETAILS
PROPERTY OVERVIEW
ADDRESS510 Gray Street
Houston, TX 77002
MARKET Houston
SUBMARKET Midtown
LAND AREA 1.248 Acres
RENTABLE SQUARE FEET 14,788 SF
GROSS SQUARE FEET 14,788 SF
OCCUPANCY 100%
NUMBER OF FLOORS 1-Story Retail Strip Center
YEAR BUILT 2004
YEAR RENOVATED -
TOTAL PARKING SPACES 61 Spaces
RATIO 4.12 Spaces/1,000 SF
SPACES 5 Suites
WALT 3.99 Years
ZONING None
PROPERTY OVERVIEW
TRAFFIC COUNTS:Gray Street: 26,858 VPD Brazos Street: 13,187 VPD
Smith Street: 35,765 VPD Interstate 45: 227,000 VPD
INGRESS/EGRESS:4 Primary Access Points
Positioned at 3 intersections with Signal Lights
FLOOD PLAN:
Located Zone X = 0.2% Annual Chance
Floodplain. Property did not flood in 2017 from
Hurricane Harvey
GROUND LEASE
Midtown Crossing is controlled through a ground lease with an initial term starting
November 1, 2003 and expiration occurring February 28, 2034 with an additional
four 5-year renewal options. The ground lease expense is not recoverable by tenancy.
PERIOD EFFECTIVE DATE ANNAUAL RENT
Years 1-5 11/3/2003 $140,000
Years 6-10 3/1/2009 $155,000
Years 11-15 3/1/2009 $175,000
Years 16-20 3/1/2019 $182,000
Years 21-25 3/1/2024 $191,000
Years 26-30 3/1/2029 $201,000
Years 31-35 (Option 1) 3/1/2034 $225,000
Years 36-40 (Option 2) 3/1/2039 $236,000
Years 41-45 (Option 3) 3/1/2044 $248,000
Years 46-50 (Option 4) 3/1/2049 $260,000
5343 Spring Valley Road, Dallas, TX 75254Real Estate Investment Services → Representation → Advisory Services → www.EVTRS.com
510 Gray Street, Houston, TX
REGIONAL MAP
5343 Spring Valley Road, Dallas, TX 75254Real Estate Investment Services → Representation → Advisory Services → www.EVTRS.com
LOCAL MAP
510 Gray Street, Houston, TX
Downtown Houston
Midtown Houston
Montrose Houston
4th Ward Houston
Washington/ Rice VillageHouston
5343 Spring Valley Road, Dallas, TX 75254Real Estate Investment Services → Representation → Advisory Services → www.EVTRS.com
510 Gray Street, Houston, TX
AERIAL MAP
WASHINGTON/ RICE VILLAGE Houston
4TH WARD Houston
5343 Spring Valley Road, Dallas, TX 75254Real Estate Investment Services → Representation → Advisory Services → www.EVTRS.com
PROPERTY PHOTO
510 Gray Street, Houston, TX
5343 Spring Valley Road, Dallas, TX 75254Real Estate Investment Services → Representation → Advisory Services → www.EVTRS.com
PROPERTY PHOTO
510 Gray Street, Houston, TX
5343 Spring Valley Road, Dallas, TX 75254Real Estate Investment Services → Representation → Advisory Services → www.EVTRS.com
PROPERTY PHOTO
510 Gray Street, Houston, TX
5343 Spring Valley Road, Dallas, TX 75254Real Estate Investment Services → Representation → Advisory Services → www.EVTRS.com
TENANT OVERVIEW
Which Wich is an international chain of
neighborhood sandwich stores founded by
restaurateur Jeff Sinelli, CEO of Genghis
Grill, in 2003, Which Wich began with one
location in downtown Dallas, Texas. It
began franchising in 2005 and was
purchased by Tesco in 2011. The company
is known for giving customers complete
control and the time they need to create the
sandwich they want.
SIZE 1,687 SF
% of GLA 11.4%
MOVE IN DATE OCTOBER 2009
LEASE EXPIRATION OCTOBE 2021
# of STORES 431
WEBSITE: WHICHWICH.COM
Buffalo Wild Wings, Inc. and their
subsidiaries operate under the names
Buffalo Wild Wings, PizzaRev and Rusty
Taco. Buffalo Wild Wings opened their
doors in 1982 in Columbus, Ohio. Buffalo
Wild Wings is an established and growing
owner, operator and franchisor of
restaurants known for their wings, beer and
sports. Buffalo Wild Wings, has a
welcoming neighborhood atmosphere with
a front-row seat for every sports fan that
offers 21 mouth-watering signature sauces
and seasonings.
SIZE 5,951 SF
% of GLA 40.2%
MOVE IN DATE AUGUST 2004
LEASE EXPIRATION JULY 2024
# of STORES 1,250
WEBSITE: BUFFALOWILDWINGS. COM
Gyu-Kaku provides the authentic Japanese
Yakiniku (barbeque) dining experience
where customers share premium cooked
meats over a personal flaming charcoal
grill installed at every table. Gyu-Kaku
offers a wide range of meats and other
popular items including pork, lamb, duck,
chicken, shrimp and a variety of
vegetables. The company has 800 locations
worldwide as a part of Reins International
Inc. The award winning restaurant is
known for their fun social dining
experience.
SIZE 3,500 SF
% of GLA 23.7%
MOVE IN DATE OCTOBER 2012
LEASE EXPIRATION SEPTEMBER 2023
# of STORES 800
WEBSITE: GYU-KAKU.COM
5343 Spring Valley Road, Dallas, TX 75254Real Estate Investment Services → Representation → Advisory Services → www.EVTRS.com
TENANT OVERVIEW
Once known as the cheapest Michelin Star
restaurant in the world winning awards in
2011 and 2012. One Dim Sum grew in
popularity and fame in its first location in
Prince Edward, Hong Kong. Now, with
their first US location, One Dim Sum
offers high quality, affordable dim sum to
Houstonians. The authentic flavors and
original essence of each dish with
garnishing creates dishes with an artistic
visual experience.
SIZE 2,600 SF
% of GLA 17.6%
MOVE IN DATE MAY 2019
LEASE EXPIRATION MAY 2025
# of STORES 2
WEBSITE: ONEDIMSUM.COM
River Oaks Cleaners opened its doors back
in February 1989, when the Momin Family
envisioned of providing spotless dry
cleaning for a small neighborhood in
Houston, TX. After 13 successful years of
operation, River Oaks Cleaners began
expansion in 2002 into additional locations
servicing the greater Houston communities.
Today, with 11 locations and growing,
River Oaks Cleaners has become a part of
the neighborhoods it serves.
SIZE 1,050 SF
% of GLA 7.1%
MOVE IN DATE NOVEMBER 2009
LEASE EXPIRATIONOCTOBER 2019
(MTM)
# of STORES 11
WEBSITE: RIVEROAKSCLEANERS.COM
5343 Spring Valley Road, Dallas, TX 75254Real Estate Investment Services → Representation → Advisory Services → www.EVTRS.com
MARKET OVERVIEW HOUSTON
4th Largest City in U.S.
6.89 Million – Current Residents
8.87 Million - 2030 Projected Population
Headquarters 31 Fortune 500 Companies
Energy Capital of the World
Home to NASA - Johnson Space Center
World’s Largest Medical Complex
ECONOMIC POWERHOUSE
Houston is firmly established as a premier global city and is a leading
destination for investment by all capital sources due to its unique
combination of stability and dynamic growth.
Houston serves as a major national distribution channel for the United
States, Canada, and Mexico.
Houston Fortune 500 Companies
MANUFACTURING
HEALTHCARE
TECHNOLOGY
AEROSPACE
OIL & GAS
INSURANCE
REAL ESTATE
RETAIL
NO STATE INCOME TAX
#1Nations Best Cities for Millennials
#2Least Expensive Real Estate
Markets.
Top Metro for Economic Job Growth
#12019’s Most Diverse Cities in the U.S.
#2Cost of Living –Cities Where Paychecks Go Far
5343 Spring Valley Road, Dallas, TX 75254Real Estate Investment Services → Representation → Advisory Services → www.EVTRS.com
SUBMARKET OVERVIEW MIDTOWN
Midtown is a neighborhood in Houston, Texas that is a thriving, pedestrian-friendly, urban community which offers residents a live, work, play environment in a walkable setting.
The area is filled with a wide range of restaurants, bars, shopping, arts and entertainment, parks and major employers creating around the clock consumer traffic.
Living in Midtown offers residents an urban feel and is filled with young professionals. 73% of residents rent their apartments/homes with a median rent of $1,302.
The Property has direct rail, auto and bike access to the CBD, Buffalo Bayou, Museum District, Hermann Park and Rice University.
13,660 - Current Residents
5,047 Apartment Units
118,000 SF of Banking Facilities
87,000 SF of Restaurant Space
49.6 Million SF of Office Space
MIDTOWN RETAIL MARKET
Existing Supply (SF)
Occupancy
Avg. Asking Rent (NNN, $PSF)
YTD Absorption (SF)
YTD Deliveries (SF)
2,072,295
94.3 %
$25.51
(7,424)
0
#3Best Neighborhood for Young Professionals in Houston
#13Best Neighborhood to Raise a Family in Houston
MIDTOWN RANKINGS
#5Best Metro for Retail Investment
#6Best Neighborhood to Live in Houston
CONTACT INFORMATION
Bruce Marshall
Managing Partner
214-261-6306
5343 Spring Valley Road, Dallas, TX 75254
Real Estate Investment Services → Representation → Advisory Services → www.EVTRS.com