721 highway 6 missouri city, t · 2017-05-26 · transwestern houston 100 west loop south, 1300...

TRANSWESTERN HOUSTON | 1900 WEST LOOP SOUTH, #1300 | HOUSTON, TX 77027 | 713.270.7700

WWW.TRANSWESTERN.NET/HOUSTON

MATT GILBERTHealthcare Advisory Services

Vice [email protected]

713.231.1654

8721 HIGHWAY 6 MISSOURI CITY, TX OFFERING MEMORANDUM

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8721 Highway 6 | Offering Memorandum

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OFFER GUIDELINES

Offers should be submitted electronically to Matt Gilbert at [email protected] and include the following information: • Purchase Price • Earnest Money• Closing Period

• Sources of Debt and Equity• Other Terms

CONTENTS

Investment Highlights

Property Overview

Location Overview

Market Overview

Page 03

Page 04

Page 10

Page 13

MATT GILBERT Healthcare Advisory ServicesVice [email protected]

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Transwestern’s Healthcare Advisory Services Group is pleased to offer

for sale on an exclusive basis, a 0.998-acre site improved medical office

building that contains approximately 8,178 net rentable square feet (“the

property”) strategically located at 8721 Highway 6 in Missouri City, Texas.

The site selection for the facility was based on the proximity to Sienna

Plantation, a master-planned community offering families the accessibility

to Houston, Texas.

The building consists of two suites, Eco Pharmacy (Suite 200) and an

available 6,678 square feet emergency care suite. The pharmacy lease

currently has 9.14 years remaining in the initial term, with (2) 5-Year options

to renew. The emergency care suite features 8 examination rooms,

reception area, conference room, administrative area, lab area, medical

gas, pharmacy, medical preparation area, trauma room, treatment room,

control/X-ray room, break room, restrooms, and nurses’ station.

• New Construction

• Double Net Lease - Limited Landlord Responsibility

• (2) 5-Year Renewal Option Periods

• 9.14 Years Remaining on Lease Term

• Population Counts Exceed 140,000 within 5 Mile Radius

Investment Highlights

FACILITY OVERVIEW

FACILITY TYPE Multi - Tenant

LEASE TYPE Double Net

YEAR BUILT 2012

SQUARE FEET 8,178

PARKING Ratio of 4.66/1,000 SF

TENANT OVERVIEW

TENANT NAME Eco Pharmacy - Suite 200SQUARE FEET 1,500PRIMARY TERM EXPIRATION February 3, 2025COMMENCEMENT DATE February 1, 2015NOI $36,000OPTION PERIOD (2) 5-YearLEASE TERMS • Double net basis, provided that the tenant shall at its sole cost and

expense keep and maintain all parts of the Premises (except those for

which Landlord is expressly responsible under the terms of the Lease),

including all Tenant Improvements and Alterations, in good order and

repair and free of refuse and rubbish.

• The landlord’s responsibility is limited to maintaining and making all

necessary repairs and/or replacement to the Property, the Building, and

the exterior portions and structural portions of the Building, including,

without limitation: the parking areas, foundations, structure, load bearing

walls, exterior walls, the roof and roof supports, columns, retaining walls,

gutters, downspouts, flashings, and footings.

• The tenant is responsible for the installation of ductwork for and regular

maintenance of the HVAC systems serving the premises.

• The leases states the tenant shall pay 18% percent of the proportional

share of the annual operating expenses and tax expenses considered

“additional rent.”

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BUILDING SYSTEMS

YEAR BUILT 2012

SIZE 8,178 rentable square feet (6,678 square feet of emergency room area and 1,500 square feet)

STORIES One (1)

LAND TO BUILDING RATIO 5.34:1.0

PERCENTAGE HVAC 100%

STRUCTUREConcrete block structure on reinforced concrete foundation with brick veneer and cut limestone facing and a pitched metal standing seam roof structure.

INTERIOR FINISHES

Interior finishes include vinyl tile and vinyl sheet flooring, painted drywall and acoustical grid ceilings with both

fluorescent and incandescent lighting. The building is equipped with essentially all of the features found in a hospital

ER including CT area with lead lined walls, cardiac pulmonary capacity, emergency generator, ultrasound, etc.

EXTERIOR FINISHES The building has gutters and downspouts, aluminum windows, a covered patient drop-off, and monument signage.

SITE IMPROVEMENTS The project has 38 parking spaces, landscaping, lighting and sprinklers.

Property Overview

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Property Overview

PROPERTY TAXESThe property is in Fort Bend County. In Texas, an appraisal district in each county sets the value of taxable property and determines exemption status, if applicable. Local taxing authorities, which include county, cities, school districts, and special districts (e.g. municipal utility districts, rural fire protection districts, junior college districts and others), adopt their own tax rates, which determine the amounts of taxes for each property.

The Texas Property Tax Code provides that all taxable property is to be appraised at its full market value as of January 1st of each year; however, appraised values are, in fact, often well below actual market values. One hundred percent of the appraised value is subject to taxation. The 2015 appraised value for the property is $1,927,970.

Taxing Authority 2015 Tax Rate

City of Missouri City 0.54468

Fort Bend County Drainage 0.02100

Fort Bend County General Fund 0.46500

Fort Bend ISD 1.34000

Sienna Plantation Management District 1.01000

Sienna Plantation LID 0.49000

Sienna Plantation MUD 8 0.00000

Totals 3.87068

The property is within the following taxing authorities:

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Property Overview

EXTERIOR SITE PLAN

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Property Overview

BUILDING LAYOUT

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Property Overview

INTERIOR IMAGES

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Property Overview

INTERIOR IMAGES

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Location Overview

Population Growth

5 Mile Radius 10 Mile Radius

2010 128,187 550,362

2014 141,986 596,927

2019 160,427 661,885

2024 186,325 746,895

Percent Change 2014-2019 12.99% 10.88%

Percent Change 2019-2024 16.14% 12.84%

CITY OVERVIEWMissouri City is located in Fort Bend county and is home to a diverse,

family-oriented, rapidly growing population. As the table to the right

demonstrates, the population in a 10-mile area surrounding the subject

property is expected to increase by an additional 12.99% between 2014

and 2019 to reach approximately 160,400 people. This growth exceeds

the Greater Houston area’s expected 5.06% growth rate for the same

time period.

CITY HIGHLIGHTS

• For more than 15 years, Fort Bend has been in the top 20 counties in the United

States for economic excellence and population growth.

• Fort Bend has been named one of the safest communities in America, with three

of the nation’s top ten master-planned communities, and the regional leader in

household income.

• Since 2000 employment has increased 78%, in part due to the expansion of

energy companies outside Houston.

• Fort Bend County is now home to more than 625,000 people living in Fulshear,

Katy, Meadows Place, Missouri City, Richmond, Rosenberg, Stafford and Sugar

Land.

• 3 Mile Radius - Annual healthcare consumer spending higher than Houston

MSA.

• Historically a hub for Houston railroads, Fort Bend is also home to the new

CenterPoint Intermodal Center, interconnecting three major highway systems,

three railroads, and access to multiple land, sea and airports in the Greater

Houston area.

Source: FortBendCounty.Com

The overall area is experiencing growth in all directions with the primary

development in the area consisting of large single family subdivision

projects centering around the highly successful First Colony master-planned

community. The redevelopment of US Highway 59 and construction of the

Fort Bend County Toll Road have increased accessibility to the area.

The subject is located near the entrance to Sienna Plantation, a 10,500 acre

master-planned community that will contain 20,000 homes when fully built-

out. Home prices generally start at about $325,000 and exceed $600,000.

The project includes a 45,000 square foot Houston Community College

Campus as well as three elementary schools, one middle school and one

high school. A 45,000 square foot library opened in April 2010. This is a

$15 million project of Fort Bend County Libraries and Houston Community

College. The project also has a 160-acre sports complex.

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Location Overview

CITY MAP OF MISSOURI CITY, TX

Booth

Hawdon

Fresno

Arcola

Thompsons

Sugar Land Fifth Street

Missouri City

Sienna Plantation

Sienna Pky

Fort

Ben

d P

ky

Fm 5

21 R

d

Mchard Rd Cartwright Rd

Trammel Fresno Rd

Fm 1

09

2 R

d

Texas Pky

W Fuqua Dr

Oilfield Rd

Commonwealth Blvd

Austin Pky

Lexington Blvd

Fondre

n R

d

6

8

59

90

8721 Highway 6

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Location Overview

DEVELOPMENT MAP OF MISSOURI CITY, TX

SIENNA SHOPPING

CENTERTHE SHOPPES AT

SIENNA PLANTATIONRETAIL PADS

FOR SALE

FUTURE DEVELOPMENT

SIENNA VILLAGE SHOPPING

CENTER

SUBJECT PROPERTY

PARKWAY PLAZA

SHOPPING CENTER

SIENNA PLANTATION

• 10,000-ACRE MASTER PLANNED COMMUNITY• 4,057 HOMES AND GROWING • WATER PARKS, TENNIS COURTS,GOLF COURSE

AND A 160-ACRE SPORTS PARK

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Location Overview

REGIONAL MAP OF MISSOURI CITY, TX

59

290

8

288

288

249

90

6

8

45

45

45

610

610

10

10

10

59

Downtown Houston

Sugar Land

Richmond

Rosenberg

Atascocita

Kingwood

Katy

Tomball

Webster

League City

Energy Corridor

Galleria

HobbyAirport

TexasMedicalCenter

BushIntercontinental

Airport

TheWoodlands

Grand Pkw

y Westpark Tollway

F.M.

1960

8721 Highway 6

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HOUSTON MEDICAL MARKET

The Houston healthcare market is in the midst of a $3.2 billion building boom to keep up with increasing demands for healthcare due to strong population growth. Major projects include six hospitals scheduled to open by the end of 2016, as well as major expansions from multiple health systems. Other new healthcare facilities include freestanding emergency centers, retail clinics, and urgent-care centers.

MARKET PROFILENonprofit Memorial Hermann Health System dominates the Houston market, with about one quarter of inpatient discharges. Its largest competitor is for-profit HCA, a national chain. Otherlarge non profits include Houston Methodist and CHI St. Luke’s Health, part of Catholic Health Initiatives. The Houston market also includes the Texas Medical Center, a 48 million square foot massive complex that includes hospitals operated by leading health systems, educational facilities, and research institutions.

ANALYSIS OF MARKET DRIVERSHealth systems are the key drivers in the Houston market, as evidenced by the ability of market leader Memorial Hermann Health System to reach accountable care agreements that include incentive payments for improving outcomes and lowering costs. Memorial Hermann’s size, power, and experience in its well-developed clinical integration program are factors in its favor during negotiations with payers.

If Aetna completes its $37 billion acquisition of Humana, it is likely to become the largest health plan in the Houston market.

Another deal, Anthem’s $54 billion acquisition of Cigna, would create the second-largest carrier in terms of total enrollment.

Look for health systems in the Houston market to expand accountable care initiatives and to continue major construction projects as they seek to operate more efficiently while meeting the demands for healthcare from a growing population. Population growth is driving health systems to open new hospitals in suburban areas and to expand facilities throughout the Houston market.

EMERGENCY AND SURGERY CENTERSAs of February 2015, the Houston market includes 116 ambulatory surgery centers. Source: HealthLeaders - Interstudy, 2015

Market Overview

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Market OverviewHOSPITAL LEASE COMPARABLES

SUGAR LAND SURGICAL HOSPITAL

Location16906 Southwest Freeway

Sugar Land, TX

Year Built 2012

Occupancy 100%

RA (SF) 41,808

Rental Rate (Gross) $33.00 NNN

Class A

Tenant Memorial Hermann

Status Off-Campus

Vacancy 0%

MEMORIAL HERMANN ORTHOPEDIC AND SPINE HOSPITAL

Location5140 West Loop South

Bellaire, TX

Year Built 2006

Occupancy 100%

RA (SF) 126,946


Class A

Tenant Memorial Hermann

Status Off-Campus

Vacancy 0%

IMPERIAL MEDICAL CENTER

Location1111 Highway 6 S

Sugar Land, TX

Year Built 1994

Occupancy 90%

RA (SF) 128,210


Class B

Tenant Elite Surgical Affiliates

Status Off-Campus

Vacancy 10%

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Market OverviewHOSPITAL SALES COMPARABLES

FIRST CHOICE EMERGENCY ROOM

Location5000 Eldorado Parkway

Mckinney, TX

Year Built 2015

Sale Date 4/1/2015

Occupancy at Sale 100%

RA (SF) 7,040

Sales Price $3,600,000

Price/SF (Gross) $504

Buyer Kendrew Investments LLC

Seller MC Lake Forest LP

Property Type Emergency Hospital

ELITE SURGICAL EMERGENCY CENTER

Location8703 Bandera Road

San Antonio, TX

Year Built 2013

Sale Date Under Contract


RA (SF) 14,878


Price/SF (Gross) $477.00

Buyer N/A

Seller Bandera ED MOB LLC

Property Type Emergency Hospital

HUMBLE SURGICAL HOSPITAL

Location1475 FM 1960 Bypass Road E

Humble, TX

Year Built 2010

Sale Date 4/1/2014


RA (SF) 30,000


Price/SF (Gross) $456.66

Buyer NorthStar Asset Management

Seller G-A Healthcare REIT

Property Type Surgical Hospital

CONFIDENTIAL MEMORANDUM & DISCLAIMER

Transwestern (“Agent”) has been engaged as the exclusive agent for the sale of 8721 Highway 6 located in Missouri City, TX (the “Property”), 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. Neither the enclosed materials nor any information contained herein is to be used for any other purpose or made available to any other person without the express written consent of the Seller. Each recipient, as a prerequisite to receiving the enclosed, should be registered with Transwestern as a “Registered Potential Investor” or as “Buyer’s Agent” for an identified “Registered Potential Investor.” The use of this Offering Memorandum and the information provided herein is subject to the terms, provisions and limitations of the confidentiality agreement furnished by Agent prior to delivery of this Offering Memorandum. 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 or 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 thereunder 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 or Agent or as otherwise provided in the Confidentiality and/or Registration Agreement executed and delivered by the recipient(s) to Transwestern.

K:\Lisa Baker\4-CARLOS & DAVID FLYERS\1a - Links\Broker Disclosure_HAZ_ADA_Code 1445 Generic For FLYERS-TW.doc

TRANSWESTERN PROPERTY COMPANY SW GP, L.L.C.

SALE/LEASE AMERICAN’S WITH DISABILITIES ACT, HAZARDOUS MATERIALS AND TAX DISCLOSURE

The Americans with Disabilities Act is intended to make many business establishments equally accessible to persons with a variety of disabilities; modifications to real property may be required. State and local laws also may mandate changes. The real estate brokers in this transaction are not qualified to advise you as to what, if any, changes may be required now, or in the future. Owners and tenants should consult the attorneys and qualified design professionals of their choice for information regarding these matters. Real estate brokers cannot determine which attorneys or design professionals have the appropriate expertise in this area. Various construction materials may contain items that have been or may in the future be determined to be hazardous (toxic) or undesirable and may need to be specifically treated/handled or removed. For example, some transformers and other electrical components contain PCB’s, and asbestos has been used in components such as fire-proofing, heating and cooling systems, air duct insulation, spray-on and tile acoustical materials, linoleum, floor tiles, roofing, dry wall and plaster. Due to prior or current uses of the Property or in the area, the Property may have hazardous or undesirable metals (including lead based paint), minerals, chemicals, hydrocarbons, or biological or radioactive items (including electric and magnetic fields) in soils, water, building components, above or below-ground containers or elsewhere in areas that may or may not be accessible or noticeable. Such items may leak or otherwise be released. Real estate agents have no expertise in the detection or correction of hazardous or undesirable items. Expert inspections are necessary. Current or future laws may require clean up by past, present and/or future owners and/or operators. It is the responsibility of the Seller/Lessor and Buyer/Tenant to retain qualified experts to detect and correct such matters and to consult with legal counsel of their choice to determine what provisions, if any, they may wish to include in transaction documents regarding the Property. Sale, lease and other transactions can have local, state and federal tax consequences for the seller/lessor and or buyer/tenant. In the event of a sale, Internal Revenue Code Section 1445 requires that all buyers of an interest in any real property located in the United States must withhold and pay over to the Internal Revenue Service (IRS) an amount equal to ten percent (10%) of the gross sales price within ten (10) days of the date of the sale unless the buyer can adequately establish that the seller was not a foreigner, generally by having the seller sign a Non-Foreign Seller Certificate. Note that depending upon the structure of the transaction, the tax withholding liability could exceed the net cash proceeds to be paid to the seller at closing. Consult your tax and legal advisor. Real estate brokers are not qualified to give legal or tax advice or to determine whether any other person is properly qualified to provide legal or tax advice. SELLER PURCHASER By: By: Title: Title: Co. Name: Co. Name: Date: Date:

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FOR MORE INFORMATION, PLEASE CONTACT:

MATT GILBERT TranswesternHealthcare Advisory ServicesVice President

[email protected]

Transwestern is a privately held real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise

leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm

capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 U.S. offices and assists clients

through more than 180 offices in 37 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate.

721 highway 6 missouri city, t · 2017-05-26 · transwestern houston 100 west loop south, 1300...

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