FILE PHOTO
EXCLUSIVE OFFERING | $3,188,000 – 5.50% CAP
Jiffy lube – CORPORATE ABSOLUTE NNN LEASE
Potranco road & US highway 151, san Antonio, TX
214.675.0175
MATTHEW SCOW
[email protected]
JOE CAPUTO
[email protected]
Property. New Construction. 4,164+ SF building on 1.19+ acres.
Tenant. Jiffy Lube, 2,000+ businesses in North America offering oil changes and other automotive services.
Lease structure. Brand new, 20-year, corporate absolute NNN lease with 10% rent increases every 5-years in primary term & options.
Location. Jiffy Lube is strategically situated along Potranco Rd. (38,000 VPD), just west of Hwy 151 (99,000 VPD). The region’s economic strength coupled with
direct accessibility has led to rapid residential development. The subject property is located in a dense commercial and residential area of San Antonio, TX. Within
a 3-mile radius of the site, the estimated population is 118,343 people and the total number of employees is 36,707. The subject property will benefit from being
located across the street from a future HEB shopping center. There are several national tenants in the immediate trade area, including Target, Walmart, Ross,
Office Depot, Gander Mountain, ToysRus, PetSmart, Dollar Tree, Walgreen’s, AutoZone, Kohl’s, Cato, Academy, Planet Fitness, Whataburger, Carl's Jr, Panera,
Five Guys, Chick-fil-A, McDonald’s, Taco Bell, Raising Canes, Sonic, and countless others.
Table of contents
Jiffy lube
Potranco road & US highway 151, san Antonio, TX
PAGE 1:
COVER
PAGE 2:
TABLE OF CONTENTS
PAGE 3:
INVESTMENT OVERVIEW
PAGE 4-5:
AERIAL PHOTOS
PAGE 6:
SITE PLAN
PAGE 7:
LOCATION OVERVIEW
PAGE 8-9:
LOCATION MAPS
PAGE 10:
DEMOGRAPHICS
Disclaimer
Trivanta. (“Agent”) has been engaged as an agent for the sale of the property located at
Potranco Road & Highway 151, San Antonio, TX by the owner of the Property (“Seller”).
The Property is being offered for sale in an “as-is, where-is” condition and Seller and Agent
make no representations or warranties as to the accuracy of the information contained in
this Offering Memorandum. The enclosed materials include highly confidential information
and are being furnished solely for the purpose of review by prospective purchasers of the
interest described herein. The enclosed materials are being provided solely to facilitate the
prospective investor’s own due diligence for which it shall be fully and solely responsible.
The material contained herein is based on information and sources deemed to be reliable,
but no representation or warranty, express or implied, is being made by Agent or Seller or
any of their respective representatives, affiliates, officers, employees, shareholders,
partners and directors, as to the accuracy or completeness of the information contained
herein. Summaries contained herein of any legal or other documents are not intended to be
comprehensive statements of the terms of such documents, but rather only outlines of
some of the principal provisions contained therein. Neither the Agent nor the Seller shall
have any liability whatsoever for the accuracy or completeness of the information contained
herein or any other written or oral communication or information transmitted or made
available or any action taken or decision made by the recipient with respect to the Property.
Interested parties are to make their own investigations, projections and conclusions without
reliance upon the material contained herein. Seller reserves the right, at its sole and
absolute discretion, to withdraw the Property from being marketed for sale at any time and
for any reason. Seller and Agent each expressly reserves the right, at their sole and
absolute discretion, to reject any and all expressions of interest or offers regarding the
Property and/or to terminate discussions with any entity at any time, with or without notice.
This offering is made subject to omissions, correction of errors, change of price or other
terms, prior sale or withdrawal from the market without notice. Agent is not authorized to
make any representations or agreements on behalf of Seller. Seller shall have no legal
commitment or obligation to any interested party reviewing the enclosed materials,
performing additional investigation and/or making an offer to purchase the Property unless
and until a binding written agreement for the purchase of the Property has been fully
executed, delivered, and approved by Seller and any conditions to Seller’s obligations
hereunder have been satisfied or waived. By taking possession of and reviewing the
information contained herein, the recipient agrees that (a) the enclosed materials and their
contents are of a highly confidential nature and will be held and treated in the strictest
confidence and shall be returned to Agent or Seller promptly upon request; and (b) the
recipient shall not contact employees or tenants of the Property directly or indirectly
regarding any aspect of the enclosed materials or the Property without the prior written
approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied
or otherwise reproduced without the prior written authorization of Seller and Agent.
2
Investment overview
Jiffy lube
Potranco road & US highway 151, san Antonio, TX
Lease overview
PRICE:
$3,188,000
CAP RATE:
Lease Term:
20 Years with 4, 5-year options to extend
5.50%
Projected Rent Commencement:
December 2016
NET OPERATING INCOME:
$175,299
Projected Lease Expiration:
December 2036
BUILDING AREA:
4,164+ Square Feet
Lease Type:
Corporate Absolute NNN
LAND AREA:
1.19+ Acres
Rent Increases:
10% Every 5 Years In Primary Term & Options
YEAR BUILT:
2016
Annual Rent Yrs 1-5:
$175,299
Option 1 | Yrs 21-25:
$256,656
LANDLORD RESPONSIBILITY:
None
Annual Rent Yrs 6-10:
$192,829
Option 2 | Yrs 26-30:
$282,322
Annual Rent Yrs 11-15: $212,112
Option 3 | Yrs 31-35:
$310,554
OWNERSHIP:
Fee Simple Interest
Annual Rent Yrs 16-20: $233,324
Option 4 | Yrs 36-40:
$341,609
ROFR to Purchase:
Tenant overview
JIFFY LUBE INTERNATIONAL, INC., a Delaware Corporation
Yes
Rent is based on a formula that includes a % of total improvement costs and will be adjusted accordingly
upon building completion. Annual Rent shown above are estimates. Consequently, the Purchase Price
may change but the agreed upon CAP rate will not.
Jiffy Lube | http://www.jiffylube.com
Jiffy Lube is a chain of over 2,000 businesses in North America offering oil changes and other automotive services. The company is based in Houston, Texas, and
is a subsidiary of Shell Oil. Jiffy Lube consists of more than 2,000 franchised service centers throughout North America and Canada, serving approximately 24
million customers each year. Jiffy Lube service centers are 100% franchise-owned, independently owned and operated by 252 entity groups. The company was
ranked first on National Oil and Lube News 2011 Tops in the Fast Lubes Industry Rankings. Also, Jiffy Lube was ranked number 15 in Entrepreneur Magazine’s
2012 Franchise 500 and number 73 on Franchise Times 2011 Top 200 Franchise Chains by Worldwide Sales.
The first Jiffy Lube store was established on 36th Street in Ogden, Utah by Edwin H. Washburn as early as 1971. Over the following years, Washburn franchised a
number of Jiffy Lube centers in within Utah. In 1979, then-football coach at Western Maryland College W. James Hindman bought out Washburn's seven
franchises and established Jiffy Lube International, relocating to Baltimore, Maryland. It is this year which Jiffy Lube generally states as its founding date with
Hindman as its founder. Jiffy Lube went public in 1987, and had opened 1,020 franchises and company stores by 1989. At this point, Jiffy Lube posted a $39
million loss on $350 million in sales and declared bankruptcy. This is the equivalent of $72.2 million and $648 million respectively in present day terms. In 1991,
Jiffy Lube became a subsidiary of Pennzoil. Following the merger of Pennzoil and Quaker State in 1998, the 581 Q Lube stores were merged into the Jiffy Lube
brand, then possessing 1,541 stores, with overlapping operations being closed down. Pennzoil-Quaker State was ultimately purchased by Shell Oil in 2002.
The core offering of Jiffy Lube remains the Jiffy Lube Signature Service® Oil Change, a service that offers customers more than just a standard oil and filter
change. In June 2011, Jiffy Lube introduced a new program called Oil Change Schedule (OCS). The new program allows Jiffy Lube customers to choose how
often they have their oil changed based on a number of variables including vehicle manufacturer recommendations, driving habits, and road conditions. The OCS
program moves away from the old model of changing oil every 3,000 miles and provides a schedule that is unique for each driver.
3
Aerial photo
Jiffy lube
Potranco road & US highway 151, san Antonio, TX
Microsoft San Antonio
Northwest Vista
College
Enroll. 16,564+
Aetna Health
Kohl’s Credit
Capital Research
Frost Bank
Christus Santa
Rosa Hospital
Earl Warren
High School
Robert L. Vale
Middle School
Hyatt Wild
Oak Ranch
FUTURE
Westover
Marketplace
4
Aerial photo
Jiffy lube
Potranco road & US highway 151, san Antonio, TX
Future Shopping Center
Impact Urgent
Care
5
site plan
Jiffy lube
Potranco road & US highway 151, san Antonio, TX
6
Location overview
Jiffy lube
Potranco road & US highway 151, san Antonio, TX
IMMEDIATE TRADE AREA
Jiffy Lube is strategically situated along Potranco Rd. (38,000 VPD), just west
of Hwy 151 (99,000 VPD). Potranco Rd. is an east-west thoroughfare that
serves San Antonio, TX and the surrounding area, while Hwy 151 is a United
States Highway that merges with Hwy 90 connecting the San Antonio western
suburbs with the downtown central business district. The region’s economic
strength coupled with direct accessibility has led to rapid residential
development. The subject property is located in a dense commercial and
residential area of San Antonio, TX. Within a 3-mile radius of the site, the
estimated population is 118,343 people and the total number of employees is
36,707.
The subject property will benefit from being located across the street from a
future HEB shopping center. There are several national tenants in the
immediate trade area, including Target, Walmart, Ross, Office Depot, Gander
Mountain, ToysRus, PetSmart, Dollar Tree, Walgreen’s, AutoZone, Kohl’s,
Cato, Academy, Planet Fitness, Whataburger, Carl's Jr, Panera, Five Guys,
Chick-fil-A, McDonald’s, Taco Bell, Raising Canes, Sonic, and countless
others.
SAN ANTONIO, TX
San Antonio is the 2nd largest city in the state of Texas and the 7th largest city
in the United States, with a population of over 1.3 million. San Antonio also
serves as the seat of Bexar County (population: 1,714,773).
San Antonio has a strong military presence—it is home to Fort Sam Houston,
Lackland Air Force Base, Randolph Air Force Base, Brooks City-Base, Camp
Bullis, and Camp Stanley. The defense industry in San Antonio employs over
89,000 people and provides a $5.25 billion annually to the city’s economy.
The South Texas Medical Center consists of 900 acres of medical-related
facilities in NW San Antonio. The center directly serves 38 Texas counties,
consists of forty-five medically related institutions: separate medical, dental and
nursing schools, five higher educational institutions, twelve hospitals, and five
specialty institutions. These facilities combined currently total over 4,200 beds.
More than $1 billion in new construction projects are currently planned between
2012 and 2014.
For visitors and locals alike, San Antonio is more than the Alamo, the River
Walk, and the birthplace of Chili. The city blends a dynamic history, people,
and culture into a unique offering of art, institutions, events, restaurants, and
nightlife found nowhere else. Over 20 million tourists visit the city and its
attractions every year, which provides over $10.7 billion and 100,000 jobs to
the local economy.
The city is home to 31 higher education facilities (that serve over 100,000
students) including campuses of the University of Texas and Texas A&M as
well as top-rated private universities such as Trinity University and St. Mary’s
University.
SAN ANTONIO-NEW BRAUNFELS MSA
San Antonio-New Braunfels, colloquially referred to as Greater San Antonio, is
an eight-county metropolitan area with a population of 2,194,927 (2010 US
Census). San Antonio’s unique geographical position connects the east and
west coasts, Canada, Mexico, Central and South America. Interstate highways
connect San Antonio to the major Texas population centers and to primary
border crossing points into Mexico including Laredo, Del Rio, Eagle Pass and
the ports at Corpus Christi and Houston.
As a result of this combination of ideal location and quality infrastructure more
than 50% of the total goods flowing between the US and Mexico travel through
San Antonio before reaching their destinations worldwide. Additionally, San
Antonio has become a growing business center for Mexican nationals, mostly
from a high socioeconomic background, and Mexican companies that seek the
stability and safety of the US during the ongoing drug war in Mexico. As a
result, hundreds of businesses and thousands of jobs have been created in
San Antonio in the past decade. In result, Greater San Antonio experienced a
22% population increase since Census 2000. Greater San Antonio has a
diversified economy with four primary focuses: financial services; government;
health care, and tourism.
Greater San Antonio is home to 2 of the 140 Fortune Global 500
headquartered in the US: Valero Energy Corp (#33) and Tesoro Petroleum
Corp (#317). Additionally, 5 Fortune 500 companies call the MSA home:
Valero; Tesoro; USAA; Clear Channel Communications; and NuStar Energy.
H-E-B, the 19th largest private company in the United States, is also
headquartered in San Antonio. Other notable companies with headquarters in
the MSA include Kinetic Concepts, Frost National Bank, Harte-Hanks, Eye
Care Centers of America, Bill Miller Bar-B-Q Enterprises, Taco Cabana,
Whataburger, Rackspace, and Carenet Healthcare Services. Additionally,
Nationwide Mutual Insurance, Kohl’s, Allstate, Chase Bank, Philips, Wells
Fargo, Toyota, Medtronic, Sysco, Caterpillar, AT&T, West Corp, Citigroup,
Boeing, QVC, and Lockheed Martin all have regional headquarters in the city.
7
Location map
Jiffy lube
Potranco road & US highway 151, san Antonio, TX
8
Location map
Jiffy lube
Singing oaks & US highway 281, spring branch, TX
9
Demographics
Jiffy lube
Potranco road & US highway 151, san Antonio, TX
Potranco Rd & Highway 151
Potranco Rd & Highway 151
1 mi radius 3 mi radius 5 mi radius
1 mi radius 3 mi radius 5 mi radius
2010 Census Population
13,155
109,433
245,216
2000 Census Population
Projected Annual Growth 2016 to 2021
4,552
1.7%
68,677
1.6%
170,992
1.4%
Historical Annual Growth 2000 to 2016
13.8%
4.5%
3.6%
2016 Estimated Households
4,720
39,902
87,135
2021 Projected Households
2010 Census Households
5,000
4,257
42,207
37,003
91,834
80,096
2000 Census Households
1,481
23,101
55,039
Projected Annual Growth 2016 to 2021
Historical Annual Growth 2000 to 2016
1.2%
13.7%
1.2%
4.5%
1.1%
3.6%
2016 Est. Population Under 10 Years
16.3%
16.2%
16.1%
2016 Est. Population 10 to 19 Years
16.5%
15.7%
15.8%
2016 Est. Population 20 to 29 Years
2016 Est. Population 30 to 44 Years
16.5%
24.6%
16.3%
23.2%
16.3%
22.5%
2016 Est. Population 45 to 59 Years
16.3%
16.4%
16.5%
2016 Est. Population 60 to 74 Years
2016 Est. Population 75 Years or Over
7.8%
2.0%
9.5%
2.7%
9.8%
3.1%
2016 Est. Median Age
29.7
30.6
31.0
2016 Est. Male Population
2016 Est. Female Population
48.8%
51.2%
48.7%
51.3%
49.1%
50.9%
2016 Est. Never Married
35.7%
33.4%
32.6%
2016 Est. Now Married
46.1%
45.4%
45.9%
2016 Est. Separated or Divorced
2016 Est. Widowed
15.7%
2.5%
17.8%
3.4%
17.6%
3.8%
2016 Est. HH Income $200,000 or More
2.2%
1.9%
2.2%
2016 Est. HH Income $150,000 to $199,999
4.4%
3.2%
4.6%
2016 Est. HH Income $100,000 to $149,999
2016 Est. HH Income $75,000 to $99,999
17.2%
22.6%
13.5%
16.3%
14.4%
15.0%
2016 Est. HH Income $50,000 to $74,999
2016 Est. HH Income $35,000 to $49,999
23.2%
11.3%
22.1%
14.1%
21.5%
13.9%
2016 Est. HH Income $25,000 to $34,999
9.1%
10.5%
9.9%
2016 Est. HH Income $15,000 to $24,999
2016 Est. HH Income Under $15,000
5.4%
4.6%
9.5%
8.8%
9.0%
9.5%
2016 Est. Average Household Income
$76,463
$65,869
$68,582
2016 Est. Median Household Income
2016 Est. Per Capita Income
$69,032
$24,711
$58,430
$22,211
$59,908
$22,567
OCCUPATION
269,008
288,381
2016 Est. Labor Population Age 16 Years or Over
2016 Est. Civilian Employed
2016 Est. Civilian Unemployed
10,743
69.8%
87,688
65.5%
200,386
64.1%
2.6%
2.5%
2.3%
2016 Est. in Armed Forces
2016 Est. not in Labor Force
1.8%
25.8%
1.3%
30.7%
2.4%
31.2%
2016 Labor Force Males
2016 Labor Force Females
47.8%
52.2%
47.8%
52.2%
48.4%
51.6%
2010 Occupation: Population Age 16 Years or Over
5,943
48,912
105,481
2010 Mgmt, Business, & Financial Operations
12.1%
11.7%
12.3%
2010 Professional, Related
2010 Service
26.1%
19.6%
19.7%
19.4%
20.0%
19.6%
2010 Sales, Office
30.0%
31.4%
29.6%
4.8%
8.7%
0.1%
9.6%
2010 Farming, Fishing, Forestry
2010 Construction, Extraction, Maintenance
2010 Production, Transport, Material Moving
TRANSPORTATION
TO WORK
118,343
127,556
TRAVEL TIME
14,608
15,863
CONSUMER EXPENDITURE
POPULATION
HOUSEHOLDS
AGE
MARITAL STATUS
& GENDER
INCOME
2016 Estimated Population
2021 Projected Population
LABOR FORCE
San Antonio, TX 78251
San Antonio, TX 78251
7.5%
9.0%
8.8%
2010 White Collar Workers
2010 Blue Collar Workers
68.1%
31.9%
62.8%
37.2%
62.0%
38.0%
2010 Drive to Work Alone
83.7%
81.5%
80.3%
2010 Drive to Work in Carpool
10.6%
13.0%
11.4%
2010 Travel to Work by Public Transportation
2010 Drive to Work on Motorcycle
0.3%
0.4%
1.5%
0.3%
1.7%
0.2%
2010 Walk or Bicycle to Work
2010 Other Means
0.2%
1.4%
0.8%
1.0%
1.8%
1.1%
2010 Work at Home
3.3%
1.9%
3.4%
2010 Travel to Work in 14 Minutes or Less
16.2%
18.5%
17.7%
2010 Travel to Work in 15 to 29 Minutes
2010 Travel to Work in 30 to 59 Minutes
53.3%
29.1%
46.0%
32.4%
43.8%
34.8%
2010 Travel to Work in 60 Minutes or More
1.5%
3.1%
3.6%
2010 Average Travel Time to Work
22.9
23.1
23.9
2016 Est. Total Household Expenditure
2016 Est. Apparel
$277 M
$9.73 M
$2.10 B
$73.6 M
$4.71 B
$165 M
2016 Est. Contributions, Gifts
$17.7 M
$132 M
$303 M
2016 Est. Education, Reading
$10.4 M
$76.9 M
$177 M
2016 Est. Entertainment
$15.6 M
$118 M
$264 M
2016 Est. Food, Beverages, Tobacco
$42.8 M
$328 M
$731 M
2016 Est. Furnishings, Equipment
2016 Est. Health Care, Insurance
$9.64 M
$23.9 M
$71.4 M
$184 M
$161 M
$411 M
2016 Est. Household Operations, Shelter, Utilities
2016 Est. Miscellaneous Expenses
$85.2 M
$4.07 M
$649 M
$31.2 M
$1.46 B
$69.6 M
2016 Est. Total Businesses
190
2,132
5,332
2016 Est. Personal Care
$3.62 M
$27.4 M
$61.4 M
2016 Est. Total Employees
3,085
36,707
83,884
2016 Est. Transportation
$54.0 M
$409 M
$911 M
10