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PROPERTY INFORMATION 3
Executive Summary 4
Property Description 5
Complete Highlights 6
LOCATION INFORMATION 7
Additional Photos 8
Location Maps 9
Regional Map 10
Aerial Maps 11
Aerial Maps 12
Aerial Maps 13
FINANCIAL ANALYSIS 14
Financial Summary 15
Income & Expenses 16
Rent Roll 17
Additional Photos 18
Tenant Information 19
Tenant Information 20
DEMOGRAPHICS 21
Demographics Map & Report 22
IABS 23
Back Page 24
ContentsConfidentiality & Disclaimer
The information contained in the following Marketing Brochure is proprietary and strictlyconfidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichapand should not be made available to any other person or entity without the written consent ofMarcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverifiedinformation to prospective purchasers, and to establish only a preliminary level of interest in thesubject property. The information contained herein is not a substitute for a thorough duediligence investigation. Marcus & Millichap has not made any investigation, and makes nowarranty or representation, with respect to the income or expenses for the subject property, thefuture projected financial performance of the property, the size and square footage of theproperty and improvements, the presence or absence of contaminating substances, PCB's orasbestos, the compliance with State and Federal regulations, the physical condition of theimprovements thereon, or the financial condition or business prospects of any tenant, or anytenant’s plans or intentions to continue its occupancy of the subject property. The informationcontained in this Marketing Brochure has been obtained from sources we believe to be reliable;however, Marcus & Millichap has not verified, and will not verify, any of the information containedherein, nor has Marcus & Millichap conducted any investigation regarding these matters andmakes no warranty or representation whatsoever regarding the accuracy or completeness of theinformation provided. All potential buyers must take appropriate measures to verify all of theinformation set forth herein.
Non-Endorsement Notice
Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant orlessee identified in this marketing package. The presence of any corporation’s logo or name is notintended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporationof Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commerciallisting of Marcus & Millichap, and is solely included for the purpose of providing tenant lesseeinformation about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS
Plaza Viejo Shopping Center7470-7490 Padre Island Highway, Brownsville, TX 78521
TABLE OF CONTENTS
Section 1 PROPERTY INFORMATION
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OFFERING SUMMARY
Sale Price: $1,907,000
Cap Rate: 5.91%
NOI: $112,665
Pro Forma Cap Rate: 12.81%
Pro Forma NOI: $244,338
Lot Size: 2.39 Acres
Parking Spaces: 90
Year Built: 2005
Building Size: 17,900
Price / SF: $106.54
Marcus & Millichap is pleased to present the opportunity to acquire a value-add, multi-tenant retail center in Brownsville, Texas.
PROPERTY OVERVIEW
DEMOGRAPHICS
1 MILE 5 MILES 10 MILES
Total Households 2,658 39,280 60,152
Total Population 10,231 139,971 223,799
Average HH Income $34,336 $41,345 $41,298
Plaza Viejo Shopping Center7470-7490 Padre Island Highway, Brownsville, TX 78521
PROPERTY INFORMATION | EXECUTIVE SUMMARY
5
Marcus & Millichap is pleased to present a value-add, multi-tenant retail center in Brownsville, Texas. Plaza Viejo is
comprised of two buildings totaling 17,900 square feet that are out parcels to a former Walmart building. Currently
59 percent occupied, the property provides tremendous upside potential in leasing the vacant spaces. Tenants
consist of a mix of credit and local businesses, including Cato, Pizza Patron, Fred Loya Insurance, T-Mobile,
MorphoTrust USA, and JR Hutchings Mattress. All leases are triple-net. The buildings were constructed in 2005
and are situated on separate parcels totaling 2.31 acres, allowing flexibility in disposition.
PROPERTY OVERVIEW
The subject property is located in the northeastern portion of Brownsville on one of the city’s major thoroughfares,
Padre Island Highway, and directly north of Ruben M Torres Boulevard, a major east-west thoroughfare. Traffic
counts are approximately 20,200 vehicles per day in front of the property. The property is shadowed by the former
Walmart building that now operates as a Southwest Key Programs location, with 1,300 employees. Neighboring
national and regional retailers include Church’s Chicken, McDonald’s, Burger King, Family Dollar, Dollar Tree,
Whataburger, Dairy Queen, AutoZone, Little Caesars Pizza, CVS Pharmacy, Cricket Wireless, Subway,
Rent-A-Center, OneMain Financial, Advance Auto Parts, and Metro by T-Mobile. Several schools are in the vicinity,
including Garcia Middle School, Imagination Station Academy, Vermillion Elementary School, and Rivera Early
College High School.
The surrounding area is densely populated with over 139,900 residents within five miles of the property. The city
of Brownsville’s proximity to the Mexican border draws consumers from both the United States and Mexico,
including nearby Monterrey, Mexico’s second wealthiest city with a population of approximately 1.2 million people.
LOCATION OVERVIEW
Plaza Viejo Shopping Center7470-7490 Padre Island Highway, Brownsville, TX 78521
PROPERTY INFORMATION | PROPERTY DESCRIPTION
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SALE HIGHLIGHTS
• Value-Add, Multi-Tenant Retail Center in Brownsville, Texas
• Currently 59% Occupied | Tremendous Upside Potential in Leasing Vacant Space | Pro
Forma Cap Rate is 12.81%
• All Current Leases are Triple-Net
• 52% of the Gross Leasable Area has Credit Tenants
• Priced at $106 per Square Foot | Below Replacement Cost
• The Center is Comprised of Two Buildings Totaling 17,900 Square Feet Situated on
Separate Parcels, Allowing Flexibility in Disposition
• Out Parcels to a Former Walmart Building that now Operates as a Southwest Key
Programs Location, with a Work Force of 1,300 Employees
• Located in the Northeastern Quadrant of Two of the Cities Major Thoroughfares
(Padre Island Highway and Ruben M Torres Boulevard) | Traffic Counts in Front of the
Property on Padre Island Highway are Approximately 20,200 Vehicles per Day
• Approximately 20 Miles to South Padre Island, Texas’ Most Popular Beach Destination
• Densely Populated Area with More than 139,900 Residents Within Five Miles of the
Property
• Close Proximity to the Mexican Border, Drawing Consumers from both the United
States and Mexico
• Property is Located in the U.S. Treasury-Defined "Opportunity Zone" | Designed to
Spur Economic Development by Providing Tax Benefits | Investors can Defer Tax on
Capital Gaines Through the End of 2026 or when the Investment is Sold | The Initial
Investment will be Discounted by up to 15% for Tax Purposes after Seven Years
Plaza Viejo Shopping Center7470-7490 Padre Island Highway, Brownsville, TX 78521
PROPERTY INFORMATION | COMPLETE HIGHLIGHTS
Section 2 LOCATION INFORMATION
Plaza Viejo Shopping Center7470-7490 Padre Island Highway, Brownsville, TX 78521
FINANCIAL ANALYSIS | LOCATION OVERVIEW
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Plaza Viejo Shopping Center7470-7490 Padre Island Highway, Brownsville, TX 78521
LOCATION INFORMATION | LOCATION MAPS
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Plaza Viejo Shopping Center
Plaza Viejo Shopping Center7470-7490 Padre Island Highway, Brownsville, TX 78521
LOCATION INFORMATION | REGIONAL MAP
1 1
Plaza Viejo Shopping Center7470-7490 Padre Island Highway, Brownsville, TX 78521
LOCATION INFORMATION | AERIAL MAPS
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Plaza Viejo Shopping Center7470-7490 Padre Island Highway, Brownsville, TX 78521
LOCATION INFORMATION | AERIAL MAPS
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Plaza Viejo Shopping Center7470-7490 Padre Island Highway, Brownsville, TX 78521
LOCATION INFORMATION | AERIAL MAPS
Section 3 FINANCIAL ANALYSIS
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INVESTMENT OVERVIEW CURRENT PRO FORMA
Price $1,907,000 $1,907,000
Price per SF $106.54 $106.54
CAP Rate 5.91 % 12.81 %
Total Return (yr 1) $112,665 $244,338
OPERATING DATA CURRENT PRO FORMA
Total Scheduled Income $218,796 $351,436
Gross Income $218,796 $351,436
Operating Expenses $106,131 $107,098
Net Operating Income $112,665 $244,338
FINANCING DATA CURRENT PRO FORMA
Down Payment $1,907,000 $1,907,000
Loan Type All Cash All Cash
Plaza Viejo Shopping Center7470-7490 Padre Island Highway, Brownsville, TX 78521
FINANCIAL ANALYSIS | FINANCIAL SUMMARY
INCOME SUMMARY CURRENT PER SF PRO FORMA PER SF
Base Rent $156,210 $14.80 $156,210 $14.80
Vacant Space at Market Rents $0 $0.00 $88,128 $12.00
Real Estate Taxes Reimbursements $22,952 $1.28 $38,921 $2.17
Insurance Reimbursements $8,170 $0.46 $13,855 $0.77
Common Area Maintenance Reimbursements $24,368 $1.36 $41,322 $2.31
Management Fee Reimbursements $7,096 $0.40 $13,000 $0.73
Gross Income $218,796 $12.22 $351,436 $19.63
EXPENSE SUMMARY CURRENT PER SF PRO FORMA PER SF
Real Estate Taxes $38,921 $2.17 $38,921 $2.17
Insurance $13,855 $0.77 $13,855 $0.77
Utilities $10,506 $0.59 $10,506 $0.59
Repairs & Maintenance $9,000 $0.50 $9,000 $0.50
Trash Disposal $9,816 $0.55 $9,816 $0.55
Landscaping $12,000 $0.67 $12,000 $0.67
Management Fee $12,033 $0.67 $13,000 $0.73
Gross Expenses $106,131 $5.93 $107,098 $5.98
Net Operating Income $112,665 $6.29 $244,338 $13.65
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Plaza Viejo Shopping Center7470-7490 Padre Island Highway, Brownsville, TX 78521
FINANCIAL ANALYSIS | INCOME & EXPENSES
TENANT
NAME
UNIT
NUMBER
UNIT
SIZE (SF)
% OF
GLA
LEASE
START
LEASE
END
ANNUAL
RENT
ESC
DATE
PRICE
PER YEAR
LEASE
TYPE
EXPENSE
REIMBURSEMENT
Pizza Patron 100 1,061 5.93 4/30/14 9/30/19 $23,873 $22.50 NNN $6,293.57
Vacant 110 1,400 7.82
Fred Loya 130 1,200 6.7 1/01/11 12/31/19 $25,464 $21.22 NNN $7,110.78
Vacant 140 1,509 8.43
Vacant 160 2,030 11.34
MorphoTrust USA (1) 170 1,400 7.82 9/01/13 10/31/21 $24,458
11/01/2019
11/01/2020
$17.47
$17.91
$18.45
NNN $8,299.44
T-Mobile 180 1,400 7.82 3/01/12 6/30/19 $39,200 $28.00 NNN $8,299.44
Cato 200 4,160 23.24 2/01/15 1/31/21 $31,200 $7.50 NNN $24,664.84
JR Hutchings Mattress 240 1,335 7.46 11/01/18 10/31/19 $12,015 $9.00 NNN $7,917.37
Vacant 260 2,405 13.44
Totals/Averages 17,900 $156,210 $8.73 $62,585.44
(1) Termination Right: Tenant shall have the right to cancel the Lease effective as of the last day of October, 2019, or the last day of any subsequent month, by providing Landlord with not less than 120 daysprior written notice.
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Plaza Viejo Shopping Center7470-7490 Padre Island Highway, Brownsville, TX 78521
FINANCIAL ANALYSIS | RENT ROLL
Plaza Viejo Shopping Center7470-7490 Padre Island Highway, Brownsville, TX 78521
FINANCIAL ANALYSIS | SITE-PLAN
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Company: The Cato Corporation
Founded: 1946
Tenant Credit: National
Locations: 1,372
Website: www.catofashions.com
Line of Business: Women's clothing and accessories retailer
Company: T-Mobile
Founded: 1994
Tenant Credit: International
Locations: 20,100+
Website: www.t-mobile.com
Line of Business: Wireless brand
Company: Fred Loya Insurance
Founded: 1974
Tenant Credit: National
Locations: 700+
Website: www.fredloya.com
Line of Business: Affordable Auto Insruance
Plaza Viejo Shopping Center7470-7490 Padre Island Highway, Brownsville, TX 78521
FINANCIAL ANALYSIS | TENANT INFORMATION
2 0
Company: Pizza Patrón Inc.
Founded: 1986
Tenant Credit: National
Locations: 140+
Website: www.pizzapatron.com
Line of Business: Fast service pizza restaurant
Company: IdentoGO
Founded: 1992
Tenant Credit: National
Locations: 1,300+
Website: www.identogo.com
Line of Business:Identity related services such as fingerprinting and TSA
Pre-check.
Plaza Viejo Shopping Center7470-7490 Padre Island Highway, Brownsville, TX 78521
FINANCIAL ANALYSIS | TENANT INFORMATION
Section 4 DEMOGRAPHICS
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POPULATION 1 MILE 5 MILES 10 MILES
Total population 10,231 139,971 223,799
Median age 24.8 26.4 28.1
Median age (Male) 20.5 23.9 25.8
Median age (Female) 26.8 28.5 30.1
HOUSEHOLDS & INCOME 1 MILE 5 MILES 10 MILES
Total households 2,658 39,280 60,152
# of persons per HH 4.1 3.8 3.7
Average HH income $34,336 $41,345 $41,298
Average house value $85,140 $85,677 $96,359
* Demographic data derived from 2010 US Census
Plaza Viejo Shopping Center7470-7490 Padre Island Highway, Brownsville, TX 78521
DEMOGRAPHICS | DEMOGRAPHICS MAP & REPORT
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.
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:
that the owner will accept a price less than the written asking price; that the buyer/tenant will pay a price greater than the price submitted in a written offer; and 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 available at www.trec.texas.gov Regulated by the Texas Real Estate Commission IABS 1-0
11-2-2015
Licensed Broker /Broker Firm Name or Primary Assumed Business Name License No. Email Phone
Designated Broker of Firm License No. Email Phone
Licensed Supervisor of Sales Agent/Associate License No. Email Phone
Sales Agent/Associate’s Name License No. Email Phone
Buyer/Tenant/Seller/Landlord Initials Date
P H I L I P L E V YSenior Managing DirectorDallas Office
972.755.5225 Office817.380.1153 [email protected]: TX 0522087
5001 Spring Valley RoadDallas, TX 75244
