G
reen
tree
Shopping Center
K A T Y,
T E X A S
EXECUTIVE SUMMARY
2
GEORGE BUSH PARK
WINDSOR PARK LAKES
RESIDENTIAL NEIGHBORHOOD
GREENTRAILS
RESIDENTIAL NEIGHBORHOOD
St. Catherine Hospital
NAP
I-10 |
KATY
FR
YR
OA
D
NAP
FREE
WAY
2
G
reen
tree
Shopping Center
K A T Y,
T E X A S
INVESTMENT SALES
RYAN WEST
RUSTY TAMLYN, CCIM, SIOR
Managing Director
Senior Managing Director
(713) 852-3535
(713) 852-3561
[email protected]
[email protected]
MATT BERRY
ROBBIE KILCREASE
Associate Director
Real Estate Analyst
(713) 852-3540
(713) 852-3533
[email protected]
[email protected]
FOR FINANCING INQUIRIES
KELLY LAYNE
Associate Director
Tel: (713) 852-3513
[email protected]
9 Greenway Plaza, Suite 700
Houston, Texas 77046
Tel (713) 852-3500
Fax (713) 852-3490
hfflp.com
Investment Merits
P R O P E RTY OV E RV I E W
PROPERTY
Green Tree Shopping Center
231-515 South Fry Road
Katy, Harris County, Texas 77450
LOCATION
SEC of Fry Road and Interstate 10
24 Miles west of Houston’s Central Business District
YEAR BUILT
1995 & 2004
LEASED99.2%
PARKING 1,100 Estimated Spaces (7.45 per 1000 SF)
TOTAL GLA
147,658 SF
LAND SIZE
21.6 Acres
DEBT
Available for New Market Rate Financing
PRICEMarket
INVESTMENT HIGHLIGHTS
• Superior Location Within the Trade Area | Main at Main in the Heart of the Katy Retail
Corridor
•Strong Demographic Profile | 1-Mile Average Household Income Exceeds $105,000
•Tremendous Residential Growth in West Houston | A “Must Have” Trade Area for
Expanding and Existing Retails
• Extremely Dense Trade Area with Over 106,000 residents within a 3 Mile Radius
•
Shadow Anchored by Target & Randall’s with Several National Credit Tenants
Including TJ Maxx, Office Depot & Petsmart
•CORE Plus Asset with Stable Historical Cash Flow and Below Market Rents Providing
Upside Potential
•Ideally Positioned at the Epicenter of the Recent Explosion of West Houston | The
Property Benefits from Close Proximity to Katy, Cinco Ranch and the Energy Corridor
•Houston is Listed by AFIRE as the 4th Best City in the World for Commercial Real
Estate Investment
• Nation Leading Population and Employment Growth over the Past Decade
1
HFF
Investment Merits
GREEN TREE LOCATION
Green Tree Shopping Center is located on the southeast corner of I-10 and Fry Road, in the
growing epicenter between Cinco Ranch, Katy and the Energy Corridor submarkets. Cinco
Ranch is one of the most sought-after communities in Texas, and has recently claimed the top
spot as the most active community for homebuilding in the Houston area for 2013 due to its
work, live and play environment. The property benefits from over 9,000 residential homes, and
average household incomes exceeding $105,000 within a one mile radius.
POPULATION
2019 Projection
2014 Estimate
2010 Census
2000 Census
Growth 2014-2019
Growth 2010-2014
Growth 2000-2010
2014 Est. Average Household Income
1 MILE
14,919
13,499
12,392
7,722
10.52%
8.93%
60.48%
$105,543
3 MILE
117,233
106,838
98,961
66,541
9.73%
7.96%
48.72%
$96,379
5 MILE
243,170
217,498
195,251
113,519
11.80%
11.39%
72.00%
$101,323
GLOBAL RECOGNIZED METRO ECONOMY
TOP GLOBAL CITIES
The Association of Foreign Investors in Real Estate
(“AFIRE”), a global commercial real estate professional
A strong tenant line-up of proven national, regional and local tenants with staggered lease
association representing over $2 trillion dollars of real
expirations offers investors an opportunity to purchase a high quality retail center in one of the
estate assets under management, recently named
fastest growing areas in one of the nation’s most vibrant economies. The Property is currently
Houston, Texas the fourth best city in the world for
99% leased to a desirable line-up of national tenants including TJ Maxx, Petsmart, and Office
commercial real estate investment.
London
(#2 last year)
2
New York (#1 last year)
3
San Francisco
(#3 last year)
4
Houston
(#5 last year)
5
Los Angeles
(#14 last year)
Depot. Green Tree has a strong national and regional tenant base and that leases 92% of the
CONSISTENT ECONOMIC GROWTH
total GLA.
EXECUTIVE SUMMARY
MIX OF NATIONAL AND LOCAL TENANTS
1
Houston has led the nation in population and employment growth over the past decade and
ANCHOR & JUNIOR ANCHOR TENANTS
TENANT
SQUARE FEET
Expiration Date
significantly outperformed since 2009. The Houston metropolitan area has grown to the 5th
TJ Maxx
30,000
Jan-16
largest in the U.S. and supports more jobs than the states of Tennessee or Wisconsin. Since
Petsmart
25,646
Mar-18
Jr. Anchor Credit Tenant*
2 1,883
Jan-25
the bottom of the global financial crises in 2009, Houston has led the nation in percentage of
Office Depot
16,000
Mar-24
Ulta Salon
12,017
May-15
jobs recovered at 309%.
Percentage of Jobs Recovered through April '14
*Pending Deals
20 Most Populous U.S. Metro Areas
Houston
309.0%
Dallas
223.6%
Washington D.C.
171.5%
Boston
164.8%
Baltimore
147.9%
San Francisco
New York
Seattle
Minneapolis
San Diego
142.9%
133.3%
127.6%
118.8%
115.3%
GREEN TREE SHOPPING CENTER
2
Site Plan
Crescent Green Drive
(NAP)
e
af
m
Fir
ss
re
t
a
M
b
Ka
Styles for Less
sh
i
Sh
South Fry Road
3
HFF
Postmart
Super Nails
GNC
Platinum Cleaners
Star Liquor
Style America
Oreck Vacuums
1,255 SF
Jr. Anchor
Credit Tenant
(Pending)
21,883 SF
Bath & Body Works
Katy Freeway (Feeder)
al
r
nt
&
ea
De
AT
tw
e
l
oo
st
F
a
C
us
mo
Fa
C
ob
SQUARE FEET
12,017
1,255
(1,255)
1,952
1,200
1,200
2,400
1,600
2,000
146,403
1,255
147,658
*Pending Deals
ss
le
ire
TENANT
Ulta Salon
Oreck
Vacant
PostMart
Super Nails
GNC
Platinum Cleaners
Star Liquor
Style America
Total Leased GLA
Total Vacant GLA
Total GLA
TW
Credit Tenant (Pending)
8,050 SF
El Chico
TENANT
SQUARE FEET
Petsmart
25,646
AT&T
2,800
Castle Dental
2,400
Famous Footwear
4,800
Shish Kabob Café
2,000
Mattress Firm
4,000
Bath & Body Works
2,400
Styles for Less
2,800
Office Depot
16,000
TJ Maxx
30,000
Jr. Anchor Credit Tenant*
21,883
Credit Tenant*
8,050
(NAP)
West Facing Aerial Photogr aph
GRAND PARKWAY
| KA
TY
PAR
K
FRE
EW
AY
PROPERTY OVERVIEW
I-10
ROW
BRITAN
IA DRIV
E
FRY ROAD
NAP
NAP
N DRIVE
CRESCENT GREE
GREEN TREE SHOPPING CENTER
4
Property Overview
IMPROVEMENT DATA
Interior:The interiors of the tenant spaces are finished out to meet the
Number of StoriesOne
needs of the individual tenant spaces. The walls are painted or
Number of Buildings 5
wallpapered gypsum board, the ceilings are suspended systems
Leased99.2%
Parking 1,100 estimated total spaces
ASSESSMENT AND TAX DATA Tax Rate2.354938%
Account Numbers1184440010003; 1189250010001
with either 2’x2’ or 2’x4’ lay-in panels or exposed roof decking
and the floors are a mixture of carpeting, vinyl floor tile and
ceramic tile flooring.
Exterior:The exterior walls consist of typical store front systems, painted
concrete, and some painted stucco trim.
Signage:Individual tenant are identified by building mounted signage
and pylon mounted signage along the street frontages.
SITE DESCRIPTION
Size21.6 acres
ShapeIrregularly shaped
Approximate Frontage
Frontage from I-10 to the north, Fry Road to the west and
Crescent Green Drive to the east.
UtilitiesAll utility capacities and public services are adequate for the
current development
Community Map Panel NoFlood Insurance Rate Map (FIRM) Panel No. 4821C0615L
Flood ZoneThe property is not located within a 100-year floodplain
BUILDING STRUCTURE AND MECHANICAL SYSTEMS
Lighting:
Property-owned,
pole-mounted
lighting
and
building
mounted flood lights illuminate the driveways and parking
lots. Incandescent soffit light fixtures are present near tenant
SITE DEVELOPMENT
Access: Access is provided by multiple driveways from the Katy Freeway
Feeder Road to the north, Fry Road to the west and Crescent
Green Drive to the east.
entrances.
Roof:The roofing system is flat with steel framing and corrugated
metal decking. Roof coverings consist of modified bitumen
Sidewalk:
Sidewalks are present along the front of the buildings. The
cap sheet at TJ Maxx and one tenant space next to Randall’s,
sidewalks consist of standard poured, cast in place concrete
ethylene propylene diene monomer (EPDM) membrane at
slabs.
PetSmart and built-up tar and gravel for the remaining roofs.
Landscaping:Minimal landscaping elements are present, such as small areas
HVAC:Roof-mounted packaged units. Generally tenants are responsible
of grass, trees and shrubs. Most of the landscaped areas are
for the HVAC equipment; however, some are the owner’s
serviced by an in-ground irrigation system.
responsibility.
Foundation:Based upon observations of the visible portions of the building
Electrical:Each tenant space is provided from 100 to 400 amperes of service,
and experience with these types of structures, the foundation
depending upon the power requirements. The electrical system
system consists of cast-in-place footings supporting load-
is original and is maintained as part of routine maintenance.
bearing foundation walls, internal pad footings supporting
columns, and a concrete slab-on-grade. No crawl spaces,
basement areas or subterranean vaults were observed.
Doors:
The entrance doors consist of glass in aluminum frames.
Emergency doors and employee areas doors are steel in steel
frame. The windows are non-opening glass storefront windows
in metal framing. The loading docks have metal roll-up doors.
5
HFF
Location Maps
der Construction
Grand Pkwy U n
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Gr
Frw
y
tex
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Pk
Lake
Houston
State Park
Eas
nd
MONTGOMERY
COUNTY
struction
on
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ExxonMobil
de
Corporate Headquarters
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LIBERTY
COUNTY
69
HARRIS
COUNTY
Pr
op
George Bush
Intercontinental
Airport
d
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wy
wy
H
Clay
ontRd
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Clay Rd
Be
Morton Rd
East Loop
Smithers
Lake
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George Bush
Park/Eldridge
Wes theim er Pkw y
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Westheime
Richmond Ave
W es tp ar
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Rd
Bellaire Blvd
S Peek Rd
1093
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Green B l v d
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BRAZORIA
COUNTY
in g
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Bl
vd
Peek Rd
Sp r
Proposed Grand Pkwy
GALVESTON
COUNTY
ia
Briar Forest Dr
CINCO RANCH
1463
or
Eldridge Pkwy
Rd
Clear
Lake
Rd
Rd
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le
el
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Fl
ty
Ka
South Frwy
wy
ry
wy
Pk
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Be
Fort
Pk
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N Dairy Ashford Rd
er
M
Galveston
Bay
Armand
Bayou
Park
S Mason Rd
m
wy
on
ei
Fr
st
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lf
Ga
es
Gu
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1463
ee
SP
Sam Houston Tollway
ENERGY CORRIDOR
Wilcrest Dr
Kingsland Blvd
William Blvd
Kingsland
P. Hobby
Airport
Park Row Dr
N Kirkwoo d Rd
1463
GREEN
TREE
Shopping
Center
Pa rk Ro w
Dr
N Fry Rd
69
Loop
Pasadena Frwy
SF
West Loop
Sou
San
Jacinto
Bay
Franz Rd
N Fry Rd
Texas
Medical
Centerth
N Mason Rd
hw
ut
So
y
rw
tF
es
69
Katy Fort Bend Rd
lway
Westpark Tol
FORT BEND
COUNTY
Avenue D
Downtown
Galleria
Barker Cypress Rd
Loop
Morton Rd
Westheimer Rd
Bear Creek Pioneers Park
y
st Frw
n Ea
Baytow
Katy Frwy
George Bush
Park
Tanner Rd
Greenhouse Rd
Sheldon
Reservoir
North
PROPERTY OVERVIEW
wy
Eld rid ge Pk
N Fry Rd
Katy Hockley dRd
Roa
y Toll
y
Fr
GREEN
TREE
Shopping
Center
Frw
Pkw
Lake
Houston
69
Hard
st
th
we
or
Pitts Rd N
rth
ed
Gran
Sam Houston Pkwy
No
os
GREEN TREE SHOPPING CENTER
6
Roll
Tenant
Over
Profiles
Schedule
Tenant:
Petsmart
Ticker Symbol:
NASDAQ: PETM
Parent Company:
N/A
2013 YE Revenue:
6.75 Billion
Square Feet:
25,646
S&P Rating:
BB+
Public/Private:
Public
Website:
www.petsmart.com
Petsmart is the largest specialty pet retailer of services and solutions for the lifetime needs of
pets. They employ approximately 52,000 associates and operate 1,289 stores and more than 196
in-store PetSmart PetsHotels® dog and cat boarding facilities in the United States, Canada and
Puerto Rico. Petsmart provides a broad range of competitively priced pet products and in-store
services including pet adoption, boarding, grooming and training. The stores are stocked with
more than 10,000 products in addition to being a leading online provider of pet supplies and pet
care information. Its company headquarters are in Phoenix, Arizona.
Tenant:
Office Depot
Ticker Symbol:
NYSE: OPD
Parent Company:
N/A
2013 Revenue
11.24 Billion
Square Feet:
16,000
Website:
www.officedepot.com
Public/Private:
Public
Office Depot, Inc. is a global supplier of office products and services. Formed by the merger of
Office Depot and OfficeMax, Office Depot, Inc. is a leading global provider of products, services,
and solutions for every workplace, including office, home, school, and car supplies. The company
has combined pro forma annual sales of approximately $17 billion, employs more than 60,000
associates, and serves consumers and businesses in 58 countries with more than 2,000 retail
stores. In addition, it contains award-winning e-commerce sites and a dedicated business-tobusiness sales organization delivered through a global network of wholly owned operations, joint
ventures, franchisees, licensees and alliance partners. The company’s portfolio of leading brands
includes Office Depot, OfficeMax, OfficeMax Grand & Toy, Viking, Ativa, TUL, Foray, and DiVOGA.
The company headquarters is in Boca Raton, Florida.
Tenant:
Ulta Beauty
Ticker Symbol:
NASDAQ: ULTA
Parent Company:
N/A
2013 Revenue:
2.22 Billion
Square Feet:
12,017
S&P Rating:
N/A
Public/Private:
Public
Website:
www.ulta.com
Ulta Beauty is the largest beauty retailer that provides one-stop shopping for prestige, mass and
salon products and salon services in the United States. The company focuses on providing product
breadth, value and convenience with the distinctive environment and experience of a specialty
retailer. As of May 3, 2014, it operated a total of 696 stores in 46 states. Ulta offers over 20,000
prestige and mass beauty products organized by category in an open store environment. Their
typical store is approximately 10,000 square feet, including approximately 950 square feet dedicated
to its full-service salon. Its corporate headquarters are in Bolingbrook, Illinois.
Tenant:
TJ Maxx
Ticker Symbol:
NYSE: TJX
Parent Company:
N/A
2013 YE Revenue:
25.88 Billion
Square Feet:
30,000
S&P Rating:
A+
Public/Private:
Public
Website:
www.tjmaxx.tjx.com
T.J. Maxx was founded in 1976, and together with Marshalls, forms The Marmaxx Group, the largest
off-price retailer of apparel and home fashions in the U.S. T.J. Maxx offers an array of fashionable,
brand name family apparel, home fashions and other merchandise, along with a new e-commerce
site launched in September, 2013. With 1,079 stores in 49 states and Puerto Rico at the end of 2013,
T.J. Maxx continues to have significant store growth in markets across the U.S. by broadening their
customer reach and appealing to a wider demographic. T.J. Maxx has headquarters in Framingham
and Marlborough, Massachusetts. The average size of a T.J. Maxx store is approximately 29,000
square feet.
7
HFF
Tenant Profiles
Tenant:
Famous Footwear
Ticker Symbol:
BWS
Parent Company:
Brown Shoe Company, Inc.
2013 Revenue:
2.48 Billion
Square Feet:
4,800
S&P Rating:
B+
Public/Private:
Public
Website:
www.famousfootwear.com
Famous Footwear was founded in 1960 in Madison, Wisconsin, which still to date serves as its
corporate headquarters location. It operates 930 stores in all 50 states plus Guam and Puerto Rico.
It employs nearly 10,000 employees nationwide. Famous Footwear has a 740,000 square foot
facility located in Sun Prairie, Wisconsin and an 800,000 square foot facility located in Lebanon,
Tennessee. Famous Footwear is a division of Brown Shoe Company, Inc., a $2.2 billion footwear
retailer and wholesaler, based in St. Louis, Missouri.
Tenant:
Mattress Firm
Ticker Symbol:
NASDAQ: MFRM
Parent Company:
N/A
2013 Revenue:
1.01 Billion
4,000
S&P Rating:
B
Public
Website:
www.mattressfirm.com
TENANCY
Square Feet:
Public/Private:
Mattress firm is a mattress retailer focused on creating a unique shopping experience for the
customer with a large selection of quality, brand name bedding products, competitive pricing and
knowledgeable associates. The company currently operates over 1100 locations across 28 states.
It was founded in 1986 and has grown to become one of the largest and most successful specialty
bedding companies in the world. Its corporate headquarters are in Houston, Texas.
GREEN TREE SHOPPING CENTER
8
Location Overview
LOCATION OVERVIEW
POPULATION
1 MILE
3 MILE
5 MILE
Green Tree Shopping Center is located in close proximity to Katy, Texas, one of the fastest
2019 Projection
14,919
117,233
243,170
growing cities in the nation has been widely lauded for its livability and rated first in the
2014 Estimate
13,499
106,838
217,498
nation in terms of household growth by the Gadberry Group and rated as the “#2 Boom
2010 Census
12,392
98,961
195,251
Town” in the nation by Business Week. The area is known for its excellent quality of life,
2000 Census
7,722
66,541
113,519
including an award-winning public education system, a talented, well-educated workforce,
Growth 2014-2019
10.52%
9.73%
11.80%
leading health care services and its safe community environment.
Growth 2010-2014
8.93%
7.96%
11.39%
In Addition, Green Tree is in close proximity to nearly every major employer in the Energy
Growth 2000-2010
60.48%
48.72%
72.00%
Corridor. The Energy Corridor contains 20.6 million square feet of office space and is second
White Alone
72.38%
65.97%
65.47%
only to the Galleria in terms of overall size among Houston’s suburban markets. The area
Black or African American Alone
8.25%
10.41%
10.91%
has historically been one of Houston’s best performing submarkets due to its concentration
Amer. Indian and Alaska Native Alone
0.55%
0.67%
0.60%
of oil and gas companies.
Asian Alone
8.90%
9.36%
9.51%
EXCELLENT DEMOGRAPHICS
Over 106,000 residents within a 3 mile radius, Green Tree Shopping Center benefits from
a dense trade area with continuing growth. The area has an average household income
exceeding $105,000/year within a one mile radius, and also reaps the benefits of the Energy
0.10%
0.07%
0.09%
6.36%
9.87%
9.68%
Two or More Races
3.48%
3.66%
3.72%
Not Hispanic or Latino
75.52%
67.59%
67.55%
Hispanic or Latino:
24.48%
32.41%
32.45%
2014 Est. Household by Household Income
4,799
35,316
70,862
GRAND PARKWAY EXPANSION
CY HHs, Inc < $15,000
9.69%
7.05%
5.89%
Proposed expansion of the Grand Parkway as the new 180-mile outer loop of Houston
CY HHs, Inc $15,000 - $24,999
7.15%
6.37%
6.47%
will further improve transit opportunities in West Houston. Two segments are complete
CY HHs, Inc $25,000 - $34,999
6.38%
7.11%
6.83%
CY HHs, Inc $35,000 - $49,999
12.65%
12.58%
11.33%
CY HHs, Inc $50,000 - $74,999
17.15%
18.62%
17.73%
Corridor’s growth and demographics.
(including the 19.5-mile segment from Highway 59 in Sugar Land to Interstate 10 in Katy),
and the remaining nine segments are in various stages of development. Once the Grand
Parkway expansion has been completed, it will help reduce congestion on many of Houston’s
major thoroughfares and will provide more direct travel options for the delivery of people,
goods and services that supply the much needed commerce of west Houston.
9
Native Hawaiian and Other Pac. Isl. Alone
Some Other Race Alone
HFF
CY HHs, Inc $75,000 - $99,999
11.48%
15.13%
16.06%
CY HHs, Inc $100,000 - $124,999
8.36%
10.54%
10.71%
CY HHs, Inc $125,000 - $149,999
6.31%
6.45%
7.10%
CY HHs, Inc $150,000 - $199,999
8.15%
7.48%
8.43%
CY HHs, Inc $200,000 - $249,999
3.23%
2.77%
3.15%
CY HHs, Inc $250,000 - $499,999
6.79%
4.38%
4.58%
CY HHs, Inc $500,000+
2.63%
1.53%
1.74%
2014 Est. Average Household Income
$105,543
$96,379
$101,323
2014 Est Median Household Income
$70,618
$72,679
$77,741
2014 Average Household Size
2.81
3.02
3.07
2014 Est Tenure of Occupied Housing Units
4,799
35,316
70,862
Owner Occupied
62.64%
69.00%
72.92%
Renter Occupied
37.36%
31.00%
27.08%
East Facing Aerial
CBD
THE GALLERIA
WESTCHASE
THE ENERGY CORRIDOR
WINDSOR PARK LAKES
RESIDENTIAL NEIGHBORHOOD
CRESCENT
GREEN DRIVE
BR
ITA
NIA
DR
IVE
NAP
NAP
I-10
| KA
TY F
REE
WAY
GREENTRAILS
RESIDENTIAL NEIGHBORHOOD
ECONOMIC OVERVIEW
BARKER RESERVOIR
FRY ROAD
GREEN TREE SHOPPING CENTER
10
O F F E R E D E X C L U S I V E LY B Y
INVESTMENT SALES
FOR FINANCING INQUIRIES
RYAN WEST
KELLY LAYNE
Managing Director
Associate Director
Phone (713) 852-3535
Phone (713) 852-3513
[email protected]
[email protected]
RUSTY TAMLYN, CCIM, SIOR
Senior Managing Director
Phone (713) 852-3561
[email protected]
MATT BERRY
9 Greenway Plaza
Suite 700
Houston Texas 77046
Phone (713) 852-3500
Fax (713) 852-3490
hfflp.com
Associate Director
Phone (713) 852-3540
[email protected]
ROBBIE KILCREASE
Analyst
Phone (713) 852-3533
[email protected]
© 2014 HFF (Holliday Fenoglio Fowler, L.P.) and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 23 offices nationwide and is a leading provider of commercial real estate and capital markets services
to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales
and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter at twitter.com/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.
7/14