Offering Memorandum - LoopNet€¦ · Marcus & Millichap has been selected to exclusively market...

1712 HIGHWAY 6 SOUTHHouston, Texas 77077

Offering Memorandum

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N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap RealEstate Investment Services, Inc. ("Marcus & Millichap") and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This MarketingBrochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. Theinformation contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation,with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements,the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or thefinancial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this MarketingBrochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor hasMarcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the informationprovided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real EstateInvestment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

THE TEXAS REAL ESTATE COMMISSION (TREC) REGULATES REAL ESTATE BROKERS AND SALES AGENTS, REAL ESTATE INSPECTORS,HOME WARRANTY COMPANIES,EASEMENT AND RIGHT-OF-WAY AGENTS AND TIMESHARE INTEREST PROVIDERS. YOU CAN FIND MORE INFORMATION AND CHECK THE STATUS OF A LICENSE HOLDER ATWWW.TREC.TEXAS.GOV. YOU CAN SEND A COMPLAINT AGAINST A LICENSE HOLDER TO TREC. A COMPLAINT FORM IS AVAILABLE ON THE TREC WEBSITE. TREC ADMINISTERSTWO RECOVERY FUNDS WHICH MAY BE USED TO SATISFY A CIVIL COURT JUDGMENT AGAINST A BROKER, SALES AGENT, REAL ESTATE INSPECTOR, OR EASEMENT OR RIGHT-OF-WAY AGENT, IF CERTAIN REQUIREMENTS ARE MET. IF YOU HAVE QUESTIONS OR ISSUES ABOUT THE ACTIVITIES OF A LICENSE HOLDER, THE COMPLAINT PROCESS OR THERECOVERY FUNDS, PLEASE VISIT THE WEBSITE OR CONTACT TREC AT:

TEXAS REAL ESTATE COMMISSIONP.O. BOX 12188AUSTIN, TEXAS 78711-2188(512) 936-3000

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporations logo or nameis not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, orcommercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

1712 HIGHWAY 6 SOUTHHouston, TexasACT ID Z0040588

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TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01Offering Summary

Regional Map

Local Map

Aerial Photo

FINANCIAL ANALYSIS 02Tenant Summary

Lease Expiration Chart

Operating Statement

Notes

Pricing Detail

Acquisition Financing

MARKET COMPARABLES 03Sales Comparables

Comparable Shopping Centers

MARKET OVERVIEW 04Market Analysis

Demographic Analysis

1712 HIGHWAY 6 SOUTH

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4

INVESTMENT

OVERVIEW


#

EXECUTIVE SUMMARY

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES

Verifinc Corporation 5,000

Acro Service Corp 4,383

ConocoPhillips Company 3,808

Gm2 3,400

Wood Group Mustang Inc 3,350

ConocoPhillips 3,054

Garden Ridge 2,943

Diamond Offshore Drlg Svcs Inc 2,500

Shell 2,379

ConocoPhillips Holding Company 2,000

B P Amoco Business Services 1,900

Atwood Oceanics Inc 1,871

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2017 Estimate Pop 8,083 95,357 300,727

2010 Census Pop 6,483 85,620 269,384

2017 Estimate HH 3,216 41,095 114,094

2010 Census HH 2,581 36,723 102,384

Median HH Income $103,413 $62,148 $59,589

Per Capita Income $57,680 $42,507 $35,796

Average HH Income $144,748 $98,550 $94,288

VITAL DATA

Price $1,400,000

Down Payment 100% / $1,400,000

Loan Type All Cash

Gross Leasable Area (GLA) 12,795 SF

Price/SF $109.42

Current Occupancy 0.0%

Year Built / Renovated 1980\2000

Lot Size 0.88 Acre(s)

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OFFERING SUMMARY

Proven Retail Location for Owner Since 1980

Built in 1980 | Renovated in 2000 as New Showroom

Above Average Household Income $90,000 | Population in 5-Mile Radius Is 368,000

Above Average Traffic Counts of Over 67,000 CPD

375 Feet of Frontage on Highway 6 with Two Entrances

Offered at $1,400,000 | $109/SF | Ready to Move-In | Less than Replacement Cost

INVESTMENT HIGHLIGHTS

Marcus & Millichap has been selected to exclusively market for sale 1712 Highway 6 South. The Formal Gallery Showroom is an owner/useropportunity. The building is 12,795 square feet and is on 0.88 acres with 375 feet of frontage and has ample ingress and egress off ofHighway 6. Highway 6 has above average traffic counts of over 67,000 cars per day. The Formal Gallery has been at this location since the80’s proving its’ location’s stability. It is moving into the newly acquired West Oaks Mall Redevelopment Area and this opens the opportunityfor a new owner to prosper in this location. Within five miles, the immediate trade area boasts strong demographics including more than368,000 people with an average household income of more than $90,000, and a daytime population of 304,882.

The area boasts national, regional, and local retailers such as Best Buy, Ross Dress for Less, Academy Sports & Outdoors, Five Below,Chase Bank, Wells Fargo, McDonald’s, Walgreens, and Goodwill to name a few. The building has excellent visibility off of Highway 6 andWestheimer Road with 67,000 cars per day.

Houston is the largest city in Texas and the fourth largest city in the United States with a population of more than 2.3 million people in 2017.The city boasts one of the most robust and dynamic economies in the world, featuring the second largest concentrations of Fortune 500companies in the country in industries such as energy, health care, manufacturing, aeronautics, and transportation. Furthermore, Houstonoffers an interconnected transportation network that includes 575 miles of freeways and expressways that provide access to marketsoutside the region.

INVESTMENT OVERVIEW

6


PROPERTY SUMMARY

OFFERING SUMMARY

PROPOSED FINANCING

First Trust Deed

Loan Type All Cash

THE OFFERING

Price $1,400,000

Property Address 1712 Highway 6 South, Houston, Texas

SITE DESCRIPTION

Year Built/Renovated 1980

Gross Leasable Area 12,795 SF

Ownership Fee Simple

Lot Size 0.88 Acre(s)

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REGIONAL MAP


8

1712 Highway 6 South

LOCAL MAP


9


AERIAL PHOTO


10


Westheimer Rd43,000 VPD

Highway 667,000

VPD

Walgreens

Area Retailers


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12

FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS


PRICING DETAIL

13

Summary

Price $1,400,000

Down Payment $1,400,000 100%

Number of Suites 1

Price Per SqFt $109.42

Gross Leasable Area (GLA) 12,795 SF

Lot Size 0.88 Acres

Year Built/Renovated 1980/2000

Occupancy 0.00%

MARCUS & MILLICHAP CAPITAL CORPORATION CAPABILITIESMMCC—our fully integrated, dedicated financing arm—is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and terms.

We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide our clients with the greatest range of financing options.

Our dedicated, knowledgeable experts understand the challenges of financingand work tirelessly to resolve all potential issues to the benefit of our clients.

National platform operating

within the firm’s brokerage

offices

$5.63 billion total national

volume in 2017

Access to more capital sources than any other firm in the industry

Optimum financing solutions to enhance value

Our ability to enhance buyer pool by expanding finance options

Our ability to enhance seller control

• Through buyer qualification support

• Our ability to manage buyers finance expectations

• Ability to monitor and manage buyer/lender progress, insuring timely, predictable closings

• By relying on a world class set of debt/equity sources and presenting a tightly underwritten credit file

WHY MMCC?

Closed 1,707 debt and equity

financings in 2017

ACQUISITION FINANCING


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15

MARKET

COMPARABLES


SALES COMPARABLES MAP

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1712 HIGHWAY 6 South(SUBJECT)

2455 Eldridge Parkway

1130 Enclave Parkway

6393 Richmond Avenue

12720 Hillcroft Street

1011 FM 359 Road

SALES COMPARABLES

ON MARKET COMPARABLES

1

2

3

4

5

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


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SALES COMPARABLES ON MARKET COMPARABLES

Tenants Lease Type

Asking Price: $1,400,000 Vacant NNN

Price/SF: $109.42

Year Built: 1980

1712 HIGHWAY 6 South1712 Highway 6 South, Houston, Texas, 77077 1

Tenants Lease TypeClose Of Escrow:

2/15/2018 Vacant when sold NNN

List Price: $2,500,000

Price/SF: $227.27

Year Built: 1997

2455 ELDRIDGE PARKWAY2455 Eldridge Parkway, Houston, Texas, 77077

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Tenants Lease TypeClose Of Escrow:

10/11/2017 Vacant when sold NNN

List Price: $750,000

Price/SF: $214.29

Year Built: 2006

1130 ENCLAVE PARKWAY1130 Enclave Parkway, Houston, Texas, 77077

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


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SALES COMPARABLES ON MARKET COMPARABLES

4

Tenants Lease Type

On Market Vacant NNN

List Price: $950,000

Price/SF: $107.84

Year Built: 1975

12720 HILLCROFT STREET12720 Hillcroft Street, Houston, Texas, 77085

5

Tenants Lease Type

On Market Vacant NNN

List Price: $1,100,000

Price/SF: $98.57

Year Built: 1994

1011 FM 359 ROAD1011 FM 359 Road, Richmond, Texas, 77406

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COMPARABLE SHOPPING CENTERS

1712 HIGHWAY 6 South(SUBJECT)

West Oaks Auto Plaza

West End Square

4

7

8

9

11

20

12

14

15

16

17

13

18

10

1

2

19

PROPERTY NAME

MARKETING TEAM


COMPARABLE SHOPPING CENTERS

rentpropertyname1


rentpropertyname1


rentpropertyname1


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Total GLA Available SF Asking Rent/SF

12,795 SF 12,795 SF $0.00

YEAR BUILT: 1980

1712 HIGHWAY 6 South1712 Highway 6 South, Houston, Texas, 77077

OCCUPANCY: 60% | YEAR BUILT: 2009


12,500 SF 5,000 SF $12.00

1

WEST OAKS AUTO PLAZA1830 Highway 6 South, Houston, Texas, 77077

OCCUPANCY: 88% | YEAR BUILT: 1980


36,637 SF 4,500 SF $14.00

2

WEST END SQUARE2201 Highway 6 South, Houston, Texas, 77077


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MARKET

OVERVIEW

MARKET OVERVIEW

HOUSTONOVERVIEW

As the fifth most populous metro area in the U.S., Houston housesnearly 6.9 million people in southeastern Texas. The market iscomposed of nine counties: Harris, Galveston, Brazoria, Fort Bend,Chambers, Montgomery, Austin, Liberty and Waller. The Gulf ofMexico, which borders the metro to the southeast, provides access tomarkets around the world via the Port of Houston, making it a primelocation for exports. Local industries have diversified from oil totechnology and healthcare. Many companies provide goods andservices for the large population growth, which has sprawled, primarilyto the north and west. The city of Houston is the largest in the metrowith 2.3 million residents.

MARKET OVERVIEW

METRO HIGHLIGHTS

CORPORATE GROWTHHouston will remain a top destination for corporate relocations due to its business-friendly environment. Twenty Fortune 500 companies are headquartered in the metro.

HIGHER EDUCATIONOver 40 post-secondary educational institutions are located in the metro. Nearly 30 percent of residents have attained a bachelor’s degree, with 11 percent also holding a graduate or professional degree.

LOW COST OF LIVING, DOING BUSINESSHouston has a lower cost of living than many major metros, no state income tax and a median home price below the national level.


22

MARKET OVERVIEW

ECONOMY The economy is diversifying to include biotechnology, distribution, nanotechnology and

logistics; the metro is the center of the energy production with roughly 260,000 workers. Local product manufacturing is a large segment of the economy and includes paper,

electrical and electronic machinery, iron, steel and petrochemicals. Healthcare is gaining economic prominence. Specialized medical education and training

institutions boost the local economy and supply a growing hospital system. The Port of Houston is one of the country’s busiest for exports, supplying thousands of

jobs and generating billions of dollars in revenue.

SHARE OF 2017 TOTAL EMPLOYMENT

MAJOR AREA EMPLOYERS

Memorial Hermann Healthcare System

University of Texas

The Kroger Co.

Exxon Mobil Corp.

Shell Oil Co.

Houston Methodist

United Continental Holdings

Baker Hughes Inc.

CHI St. Luke’s Health

Hewlett Packard Enterprise* Forecast

MANUFACTURING8%

GOVERNMENT

HEALTH SERVICESEDUCATION AND

OTHER SERVICES AND MINING

+NATURAL RESOURCES

3%

LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES

20%AND UTILITIES

TRADE, TRANSPORTATION CONSTRUCTION

PROFESSIONAL ANDBUSINESS SERVICES

4%INFORMATION AND

16%

7%

14% 10% 5%

13%


23

MARKET OVERVIEW

DEMOGRAPHICS

The Houston metro is expected to add 506,600 people through 2022 and roughly 111,500 of these residents will be millennials in the 20- to 34-year-old cohort.

During the same period, nearly 229,500 households will be formed, generating demand for housing.

The homeownership rate of 61 percent is below the national rate of 64 percent. The median home price of $247,200 is also below that the U.S.

Outdoor activities abound in Houston as a result of the city’s favorable location and

climate. More than a dozen state parks and recreation areas lie within a short drive of

Houston, as well as more than 500 parks and open spaces and various cultural venues and

museums. Johnson Space Center is a popular tourist and educational destination. The

metro is also known internationally for its medical community and is home to the Texas

Medical Center, the largest of its kind in the world. Houston is home to four professional

sports teams: the Houston Texans, the Houston Astros, the Houston Rockets and the

Houston Dynamo.

* Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau

QUALITY OF LIFE

2017 Population by Age

0-4 YEARS

7%5-19 YEARS

22%20-24 YEARS

7%25-44 YEARS

29%45-64 YEARS

24%65+ YEARS

10%

SPORTS

EDUCATION

ARTS & ENTERTAINMENT


34.12017

MEDIAN AGE:

U.S. Median:

37.8

$60,300 2017 MEDIAN

HOUSEHOLD INCOME:

U.S. Median:

$56,300

6.9M2017

POPULATION:

Growth2017-2022*:

7.4%

2.4M2017

HOUSEHOLDS:

9.6%

Growth2017-2022*:

24

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Rebouding employment, healthy demographics encourage Houston retailmarket. While many other major metros’ growth cycles are beginning to slow down,Houston is ramping back up. The decline in energy prices placed pressure on thelocal oil and gas industry in the middle of a national economic expansion. As a result,employment gains were virtually flat for two years as additions in other sectorsmitigated losses at energy firms and related companies. Job creation in the metrobegan to strengthen during 2017, and growth continue to improve again this year,attracting new residents to the metro. With the market returning to expansion mode,retail tenant demand strengthens from last year at a time when deliveries remain neara cyclical peak.

Households replacing damaged goods help boost retail spending. Thousands ofresidents are still dealing with repairs and replacing household goods in the metrofollowing the flooding from Hurricane Harvey. This helped boost spending in themetro at its fastest pace since 2014, and a stronger rate of growth is expected againthis year. Retail developers continue to bring a healthy amount of new space online inthe metro to meet rising tenant demand, and while vacancy rises this year, thedevelopment pipeline begins to thin and vacancy remains healthy through the end ofthis year.

• Houston’s ability to rebound from uncertain economic times and perils hasmade it an attractive market in which to invest, with yields averaging 50 to100 basis points higher than most major markets across the country. Risinginterest rates, and the local economy back in growth mode, could promptadditional demand as buyers search for higher-yielding opportunities.

• Unanchored strip centers are performing well and attracting strong investorinterest throughout the metro. Properties with small shop space and a goodmix of service-related retailers are in highest demand. Cap rates for theseassets average between 6.5 percent and 7.5 percent depending on propertyage, location and tenant credit.

• Strip center assets in western areas of the metro, such as Sugar Land, Katyand up to The Woodlands, are in high demand and often trading for apremium, with prices averaging $40 to $60 per square foot more than themetro average.

Retail 2018 OutlookHouston Employment Rising Again,Attracts Residents and Retailers

HOUSTON METRO AREA

4.4 million sq. ft.

will be completed

3.3% increase in

asking rents

20 basis point

increase in vacancy

Construction:

Asking rent advances at a healthy clip to$17.63 per square foot. Last year, theaverage increased 4.4 percent.

Vacancy rises to 5.9 percent in 2018 as theabsorption of more than 3.6 million squarefeet of retail space falls short of supplyadditions this year.

* Cap rates trailing 12 months through 1Q18; 10-Year Treasury up to March 29, 2018Sources: CoStar Group, Inc.; Real Capital Analytics

Retail deliveries in Houston during 2018 willbe one of the highest in the country andremain in line with the previous five-yearaverage.

Vacancy:

Rents:

Investment Trends


26

• A gain of more than 26,000 employees in the professional and business services sector helped propel a 64,000-job increase in Houston’s total employment during the past 12 months.

• Strong job gains resulted in a 120-basis-point drop in the metro’s unemployment rate, which reached 4.5 percent in the first quarter, near the decade low.

EMPLOYMENT

• Approximately 1 million square feet of retail space came online in the first quarter, with deliveries concentrated in the North Houston suburb of Conroe.

• Space underway is concentrated in the southwest portion of the metro, where nearly 800,000 square feet of space is under construction. Sugar Land will gain more than 300,000 square feet of space this year.

CONSTRUCTION

• Absorption stumbled during the third quarter of 2017 as retailers dealt with the aftermath of Hurricane Harvey, resulting in supply additions outpacing demand over the last year and pushing up vacancy to 5.7 percent.

• The CBD, Inner Loop and North Houston submarkets recorded increases in vacancy of 100 basis points or more over the past four quarters.

VACANCY

• The average asking rent advanced to $17.20 per square foot over the past year, slowing from the 6.7 percent pace of growth achieved over the previous 12-month span.

• Despite a 240-basis-point increase in vacancy last year, rent growth in the CBD was strong. The average surged more than 25 percent during the past year to $24.27 per square foot.

RENTS

HOUSTON METRO AREA

increase in the average asking rent Y-O-Y

1.6%basis point increase in vacancy Y-O-Y

40square feet completedY-O-Y

5.1 millionincrease in total employment Y-O-Y

2.1%

* Forecast

1Q18 - 12-Month Trend


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Buyers Target Houston for Larger Yield Spreads Amid Rising Interest Rate Environment

Outlook: Strong retail property operationsand a favorable economic outlook willsustain healthy demand for Houston areaproperties.

VacancyRate

Y-O-YBasisPoint

ChangeSubmarket

AskingRent

Y-O-Y%Change

Austin County 1.6% -960 $12.00 35.3%

Northeast 4.4% 30 $17.49 6.4%

Inner Loop 4.6% 100 $26.18 10.1%

West 5.0% 30 $20.93 1.8%

East 5.5% 70 $13.96 6.3%

Northwest 5.7% 30 $18.66 9.5%

Southeast 5.7% -20 $14.34 1.8%

Southwest 6.2% 20 $15.04 -2.5%

CBD 6.3% 240 $24.27 25.3%

South 6.3% 60 $15.98 -2.3%

North 6.7% 140 $13.64 -14.8%

Overall Metro 5.7% 40 $17.20 1.6%

Submarket Trends

Lowest Vacancy Rates 1Q18

Sales Trends

HOUSTON METRO AREA

• Multi-Tenant: Sales activity is increasing as confidence in Houston returns, and theaverage price grew 3.6 percent to nearly $214 per square foot. Cap rates for theseproperties averaged 7.7 percent.

• Single-Tenant: Net leased retail assets changed hands for an average price of $256per square foot over the past 12 months, with cap rates in the low-7 percent area.

* Trailing 12 months through 1Q18 over previous time periodPricing trend sources: CoStar Group, Inc.; Real Capital Analytics


* Forecast **2017-2022

28

HOUSTON METRO AREA


• Fed raises benchmark interest rate, plans additional increases. The Federal Reserve

increased the federal funds rate by 25 basis points in late March, raising the overnight

lending rate to 1.5 percent. While the Fed noted the inflation outlook moderated recently, an

upgraded economic forecast including tax cuts and a regulation rollback strengthened

growth projections through 2020. As a result, the Fed has guided toward at least two more

rate hikes this year, while setting the stage for up to four increases in 2019.

• Lending costs rise alongside Fed rate increase. As the Federal Reserve lifts interest rates,

lenders will face a rising cost of capital, which may lead to higher lending rates for investors.

However, greater competition for loan demand has prompted some lenders to absorb some

cost increases. While higher borrowing costs may prompt buyers to seek higher cap rates,

the positive economic outlook should boost rent growth above inflation over the coming

year.

• The capital markets environment remains highly competitive. While the Federal Reserve

has committed to tightening policy, other major central banks have maintained easing

policies. The downward pressure on rates from foreign central banks is counteracting greater

economic growth and wider government deficits, keeping demand for fixed-income

investments stable. Loan pricing resides in the mid-4 percent range with maximum leverage

of 70 percent. Portfolio lenders will require loan-to-value ratios closer to 65 percent with

interest rates, depending on term, in the high-3 to mid-4 percent range. The passage of tax

reform and rising fiscal stimulus will keep the U.S. economy growing strongly this year, while

limited new construction and steady absorption will contain office vacancy near 14 percent.

* Through May 1stSources: CoStar Group, Inc.; Real Capital Analytics

Capital Markets

PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

Source: © 2018 Experian

Created on January 2019

POPULATION 1 Miles 3 Miles 5 Miles 2022 Projection

Total Population 9,826 103,475 323,744

2017 Estimate


2010 Census


2000 Census


Current Daytime Population

2017 Estimate 10,360 111,081 304,822

HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2022 Projection

Total Households 3,947 45,108 124,481

2017 Estimate


Average (Mean) Household Size 2.38 2.30 2.60

2010 Census


2000 Census


Occupied Units

2022 Projection 3,947 45,108 124,481

2017 Estimate 3,355 44,832 122,290

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2017 Estimate

$150,000 or More 30.69% 15.88% 15.22%

$100,000 - $149,000 21.17% 13.83% 13.34%

$75,000 - $99,999 10.98% 11.18% 10.73%

$50,000 - $74,999 14.70% 18.12% 18.11%

$35,000 - $49,999 7.05% 13.15% 13.31%

Under $35,000 15.44% 27.83% 29.30%

Average Household Income $144,748 $98,550 $94,288

Median Household Income $103,413 $62,148 $59,589

Per Capita Income $57,680 $42,507 $35,796

HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 MilesTotal Average Household Retail Expenditure $84,849 $69,793 $67,791

Consumer Expenditure Top 10 Categories

Housing $21,842 $18,292 $17,765

Transportation $16,304 $14,113 $13,815

Shelter $11,301 $9,764 $9,498

Food $9,240 $7,669 $7,521

Personal Insurance and Pensions $8,749 $6,533 $6,294

Health Care $6,239 $4,663 $4,497

Utilities $5,163 $4,413 $4,334

Entertainment $3,531 $2,668 $2,558Household Furnishings and Equipment $2,839 $2,139 $2,053

Cash Contributions $2,684 $1,780 $1,727

POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population By Age

2017 Estimate Total Population 8,083 95,357 300,727

Under 20 24.58% 24.05% 26.92%

20 to 34 Years 16.43% 24.64% 23.39%

35 to 39 Years 6.49% 7.65% 7.37%

40 to 49 Years 13.86% 13.20% 13.56%

50 to 64 Years 19.05% 18.93% 18.61%

Age 65+ 19.58% 11.52% 10.17%

Median Age 41.77 35.81 34.81

Population 25+ by Education Level

2017 Estimate Population Age 25+ 5,690 66,186 198,849

Elementary (0-8) 0.43% 2.93% 4.35%

Some High School (9-11) 2.12% 4.41% 6.44%

High School Graduate (12) 9.12% 15.96% 18.22%

Some College (13-15) 18.74% 21.78% 22.05%

Associate Degree Only 5.72% 6.36% 6.27%

Bachelors Degree Only 36.33% 29.14% 25.85%

Graduate Degree 27.10% 18.30% 14.59%

29

IncomeIn 2018, the median household income for your selected geography is$103,413, compare this to the US average which is currently $56,286.The median household income for your area has changed by 36.76%since 2000. It is estimated that the median household income in yourarea will be $113,639 five years from now, which represents a changeof 9.89% from the current year.

The current year per capita income in your area is $57,680, comparethis to the US average, which is $30,982. The current year averagehousehold income in your area is $144,748, compare this to the USaverage which is $81,217.

PopulationIn 2018, the population in your selected geography is 8,083. Thepopulation has changed by 152.12% since 2000. It is estimated thatthe population in your area will be 9,826.00 five years from now,which represents a change of 21.56% from the current year. Thecurrent population is 47.98% male and 52.02% female. The medianage of the population in your area is 41.77, compare this to the USaverage which is 37.83. The population density in your area is2,574.96 people per square mile.

HouseholdsThere are currently 3,216 households in your selected geography. Thenumber of households has changed by 156.66% since 2000. It isestimated that the number of households in your area will be 3,947five years from now, which represents a change of 22.73% from thecurrent year. The average household size in your area is 2.38 persons.

EmploymentIn 2018, there are 3,377 employees in your selected area, this is alsoknown as the daytime population. The 2000 Census revealed that90.35% of employees are employed in white-collar occupations inthis geography, and 9.42% are employed in blue-collar occupations.In 2018, unemployment in this area is 3.22%. In 2000, the averagetime traveled to work was 30.00 minutes.

Race and EthnicityThe current year racial makeup of your selected area is as follows:61.34% White, 7.63% Black, 0.09% Native American and 23.39%Asian/Pacific Islander. Compare these to US averages which are:70.42% White, 12.85% Black, 0.19% Native American and 5.53%Asian/Pacific Islander. People of Hispanic origin are countedindependently of race.

People of Hispanic origin make up 18.65% of the current yearpopulation in your selected area. Compare this to the US average of17.88%.

PROPERTY NAME

MARKETING TEAM


HousingThe median housing value in your area was $366,062 in 2018,compare this to the US average of $193,953. In 2000, there were 840owner occupied housing units in your area and there were 413 renteroccupied housing units in your area. The median rent at the time was$1,032.

Source: © 2018 Experian

DEMOGRAPHICS

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DEMOGRAPHICS

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INFORMATION ABOUT BROKERAGE SERVICESTexas 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 propertymanagement 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 knownby 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 agentmust 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 disclosedto 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 writtenagreement 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 representthe 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. Pleaseacknowledge receipt of this notice below and retain a copy for your records.

Information available at www.trec.texas.govRegulated by the Texas Real Estate CommissionIABS 1-0

11-2-2015

Marcus & Millichap 9002994 [email protected] 972-755-5200

Licensed Broker /Broker Firm Name or Primary Assumed Business Name License No. Email Phone

Tim A. Speck 432723 [email protected] 872-755-5200

Designated Broker of Firm License No. Email Phone

Ford Noe 709695 [email protected] 713-452-4200

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

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