1Scott Myers512.314.3571 [email protected]
VIEW PROPERTY VIDEO
Ideal Owner/User Investment Opportunityin an Opportunity Zone
210700 NORTH FREEWAY
• Over 160,000 SF available for lease
• Move-in ready spec suites
• Secured, full garage parking
• 5 parking spaces per 1,000 SF leased
• Building and monument signage available
• Common area renovations complete including lobby, tenant lounge and new conference facility
• On-site food service
• Redundant fiber and WiFi
• On-site guard service
A newly renovated Class A office building in North Houston
• Class A 10-story office building measuring 182,325 SF with over $4.3 million in recent capital improvements
• Highly efficient floor plates with a contiguous block of 165,048 SF available for a new owner/user
• Premier building signage available viewed by over 300,000 vehicles per day
• Ideal location with easy freeway access serving all areas of the Houston MSA
• Available for purchase at a fraction of replacement cost
INVESTMENT HIGHLIGHTS
VIEW PROPERTY VIDEO
Tenant Lounge
3OFFERING MEMORANDUM
Elevators on 1st Floor
Security Desk in Lobby
10th Floor
Tenant Lounge Monument Sign
410700 NORTH FREEWAY
HVAC System The building is served by two Trane centrifugal chillers rated at 250 tons each, which were installed in 2009. Additionally, a 500-ton Baltimore Air cooling tower was installed in 2009. Building air is supplied by one air handler per floor with VAV boxes throughout the floorplate - heat is supplied by strip heaters located on the perimeter of each floor.
RoofThe building roof was replaced in 2016 at a cost of $390,000 and includes a 20-year transferrable warranty.
Curtain WallThe entire curtain wall was overlaid and sealed in 2018 at a cost of $1,038,000.
ElevatorsVertical transportation in the building is provided by 4 traction elevators with a 2,500 pound capacity rated at 350 FPM. The building elevators were modernized in 2012. The parking garage elevator is a hydraulic system rated at 2,500 pounds at 125 FPM, which was modernized in 2009.
Life Safety
The building is equipped with an automatic fire sprinkler system consisting of standpipes in stairwells and sprinklers on all floors of the building. Fire suppression water is boosted by a diesel fire pump that was replaced in 2018 at a cost of $103,000. Additionally, a Silent Knight fire panel is located on the first floor of the building. A Detroit diesel generator rated at 100 kva supplies emergency power to all life safety equipment and emergency lighting in the event of a power outage.
EMSThe building is served by a Johnson Metasys management system, which was upgraded in January 2019.
BUILDING INFORMATION
Year Cost
New Roof 2016 $390,000
New Roof Anchor System 2016 $53,000
Management Office Upgrade 2017 $85,000
Building Conference Room 2017 $58,000
Lobby Renovation 2017 $535,000
Fire Pump Replacement 2018 $103,000
Retrofit & Renovate Level 1 & 4 Restrooms 2017 $300,000
Renovate Level 9 Restrooms 2018 $60,000
Building Cafe 2017 $127,000
Replace Building Plumbing Main 2017 $57,000
White Box Suites 450 & 470 2018 $115,000
White Box Suite 100 & Level 10 2018 $96,000
Curtain Wall Overlay 2018 $1,038,000
Replace Ground Fault 2018 $14,000
Complete Building Sprinkler System 2017 $142,000
Renovate & Enclose Breezeway 2018 $72,000
Replace Breezeway Roof 2018 $10,300
Parking Garage Repairs 2018 $418,000
Update Common Areas 2, 3, 4 & 9 2018 $52,000
Upgrade Access System; Add Toll Tag System to Garage
2018 $10,300
Upgrade Security Cameras 2018 $55,000
Upgrade Garage Lighting to LED 2019 $41,000
Surface Visitor Parking Lot 2018 $436,000
Replace Water Pump 2018 $50,000
TOTAL $4,317,600
Completed Capital Improvements
5OFFERING MEMORANDUM
The Opportunity Zones program offers investors the following incentives for putting their capital to work in low-income communities:
A temporary tax deferral for capital gains reinvested in an Opportunity Fund. The deferred gain must be recognized on the earlier of the date on which the opportunity zone investment is sold or December 31, 2026.
A step-up in basis for capital gains reinvested in an Opportunity Fund. The basis of the original investment is increased by 10% if the investment in the qualified opportunity zone fund is held by the taxpayer for at least 5 years, and by an additional 5% if held for at least 7 years, excluding up to 15% of the original gain from taxation.
A permanent exclusion from taxable income of capital gains from the sale or exchange of an investment in a qualified opportunity zone fund, if the investment is held for at least 10 years. (Note: this exclusion applies to the gains accrued from an investment in an Opportunity Fund, not the original gains).
OPPORTUNITY ZONE INCENTIVES
OPPORTUNITY ZONEOpportunity Zones are low income census tracts nominated by governors and certified by the U.S. Department of the Treasury into which investors can now put capital to work financing new projects and enterprises in exchange for certain federal capital gains tax advantages. The country now has over 8,700 Opportunity Zones in every state and territory.
OPPORTUNITY FUNDSOpportunity Funds are private sector investment vehicles that invest at least 90 percent of their capital in Opportunity Zones. U.S. investors currently hold trillions of dollars in unrealized capital gains in stocks and mutual funds alone— a significant untapped resource for economic development. Opportunity Funds provide investors the chance to put that money to work rebuilding the nation’s left-behind communities. The fund model will enable a broad array of investors to pool their resources in Opportunity Zones, increasing the scale of investments going to underserved areas.
US Tax Code Opportunity Zone
Lobby Conference Facility Directory & 1st Floor Corridor
610700 NORTH FREEWAY
Notes:Total Building SF 181,664 SFBuilding Occupancy with 150,000sf Tenant 82.57%Remaining Vacancy 31,664 SF For future growth or for additional income
Total User SF 150,000 SF
Initial Monthly Rent @ $18/sf/year Gross $225,000.00 Year 1 Annual Rent $2,700,000.00 Total projected rent over 10 year lease term $29,564,246.70
Owner/User Estimated Occupancy Cost ($10.00 OPEX) $1,500,000.00 Annual P&I Payments at 4.5% $593,724.00Cash Flow from other tenants $253,312.00 (Net of operating expenses)
Net Annual Occupancy Cost in Owner/User Scenario $1,840,412.00 Lowered occupancy cost due to offset in NOI from building
Total Projected Occupancy Cost over 10 years $18,404,120.00
Initial Mortgage Balance $8,901,536.00 Deduct Monthly P&I Payments at 4.5% $49,477.00 Ending Mortgage Balance Year 10 $6,467,721.00
Gross Sales Price after 10 Years $20,912,553.35 (Cap rate of 9%)
Buy vs. Lease Scenario for End User at 10700 North Freeway
A 150,000sf tenant benefits from ownership in an Opportunity Zone:
Seller financing available.
7OFFERING MEMORANDUM
IMP
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VETERAN
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BENMAR DR
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22
IHOP Rico’s Mexican Cafe Indian Grill
Monterey’s Little Mexico Cajun Town Cafe Asiana Garden Restaurant Chef Lin’s Hunan Yuan
Piazza Cafe
Anthony’s Pizza
Hilton Houston North
Houston Marriott North
Hyatt Place Bush Intercontinental Airport
Hyatt North Houston
Residence Inn Houston at Intercontinental Airport
Park Inn by Radisson Baymont Inn & Suites
Quality Inn & Suites
Uncle Tong’s Chinese Restaurant Schlotzsky’s Deli Rising Roll Gourmet Ichiban Japanese Seafood & Steakhouse
Prescott Grill - Marriott North Greenspoint
Jimmy G’s Cajun Seafood Restaurant
Super Chicken
East Mesquite Grill
Waffle House
Starbucks
Ostioneria Michoan El Papaturro
Denny’s Canton Chinese Restaurant
Pappas Seafood House
Pho Houston Chili’s Bar and Grill Jalisco Mexican Food
China Buffet Restaurant Mambo Seafood Market
Maine-ly Sandwiches
Moon Palace Restaurant China Border
Bonfire Wings
Panda Express
Tampico Seafood & Cocina Mexicana
Tacos de Julio III
Taco Cabana
RESTAURANTS HOTELS
21
18
16
232019
1117
15
14 13
12
12
3 4
5
6 78
9
10
1
2 34 5
6 7
1
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810700 NORTH FREEWAY
AVAILABILITY
Available Leased
Available
18,919 SF
Available4,846 SF
Available18,919 SF
Available18,851 SF
Available18,851 SF
Available12,327 SF
Available18,757 SF
Available18,687 SF
Available9,794 SF
Availiable
18,919 SF
Floors
10
9
8
7
6
5
4
3
2
1
Total =158,870 SF
SAMPLE PLANS
JAN
WOMEN
MEN
MECH
ELEC ELEV# 2
ELEV# 1
ELEV# 4
ELEV# 3
STAIRB
STAIRA
FP
FEC FP
FEC
TEXASHOUSTON
A PROJECT FOR
SCALE: As indicated
151281
7TH FLOOR - OVERALL FLOOR PLANOVERALL FLOOR PLAN - TOTAL = 18,919 NRA
TRANSWESTERNTW 10700 NORTH FREEWAY
01/07/16
SCALE: 1/8" = 1'-0"
OVERALL 7TH FLOOR PLAN
Su i te 700 - 18 ,919 SF
Su i te 1000 - 18 ,919 SF
ELEC
MECH
ELEC
WOMEN
MEN
JAN
ELEV# 2
ELEV# 1
ELEV# 4
ELEV# 3
STAIRB
STAIRA
FEC
FP
FEC FP
TEXASHOUSTON
A PROJECT FOR
SCALE: As indicated
151281
10TH FLOOR - OVERALL FLOOR PLANOVERALL FLOOR PLAN - TOTAL = 18,919 NRA
TRANSWESTERNTW 10700 NORTH FREEWAY
08/17/16
SCALE: 1/8" = 1'-0"
OVERALL 10TH FLOOR PLAN
9OFFERING MEMORANDUM
Move-in ready suites availableSu i te 470 - 4 ,098 SF
PLAN NORTH
10700 North Freeway Houston, , TX 6/19/18IDG Project #
MARKETING PLAN
LEASING CONTACT:Michelle Wogan, Paula MusaP: 713.270.7700Email: [email protected] [email protected]
FLOOR 4
1010700 NORTH FREEWAY
TEST FIT EXAMPLE
Su i te 700 - 18 ,919 SF
3118 Richmond Ave., Suite 200Houston, Texas 77098T 713.524.5555, F 713.524.4777www.invdesgroup.com
Lv 8 Test Fit Plan
9/28/17
Interim Review Only- Not for regulatoryapproval, permitting or construction.© Inventure Design Group. All rights reserved. No part of this documentmay be reproduced or utilized in any form without prior writtenauthorization of Inventure Design Group.
US Legal Support
10700 North Fwy Houston TX 77060
date
drawing name
US
Lega
l Sup
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Cur
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Thu
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017
Approved by (Signature)________________________________ (Printed Name, Title)________________________________Date________________________________
N
FP
ELEV# 2
ELEV# 1 ELEV# 4
ELEV# 3
FECFP
STAIRB
STAIRA
JAN
WOMENMEN
MECH
ELEC
FEC
OE
OE
OE
OE
OE
OE
OE
OE
OE
OE
OE
OE
OE
OE
OE
OE
OE
OE
OE
OE
OE
OE
OE
OE
OE
OE
OE
OEOE
OE
GROWTH
GROWTH
GROWTH
GROWTH
GROWTH
GROWTH
GROWTH
GROWTH
GROWTHCS
CS
CS
CS
CS
CS
CS
CS
CS
CS
CS
CS
CSCS
CS
CS
CS
CS
CS
CS
CS
CS
CSCS
B
B
B
B
GROWTH
GROWTH
B
B
STAGESTAGE
FC
FC
FC
FC
SCAN
SCAN
SCAN
SCAN
PROD.
PROD.
PROD.
PROD.
MAI
L SO
RT
POST
AGE/
EN
V.
UPS
TI TI TI
TI TI TI
TI TI TI
STAGE
CR SCAN CR ADMIN
CR CR
CS
CS
GROWTH
CR CR
CR
CRCR
CRCR
CRCR
CR
CRCR
CRCR
CRCR
CR CR
CR
CR
CR
CR
CR
CR
CR CROfÞce220 sf
CS Mgr164 sf
Sales Admin164 sf
Sales/ Mkg169 sf
Conference183 sf
OE OfÞce145 sf
OfÞce146 sf
Mkg/ Sales Stor.178 sf
Conference710 sf
Turn In OfÞce186 sf
Turn In OfÞce122 sf
Records123 sf
Records File123 sf
CR/ PROD140 sf
Video Stor.212 sfRecords
729 sf
CR Stor.107 sf
CR OfÞce209 sf
CR OfÞce140 sf
Conference433 sf
Coffee/ Copy288 sf Coffee/ Copy
79 sf
Servery95 sf
Wellness76 sf
Reception501 sf
OfÞce
Conference
Break Room/Coffee
Reception/Lobby
Workstations
Administration
Files/Storage
Copy/Fax
IT/Telecom
Other
SCALE: 1/16" = 1'-0"1 Level 8- 10700 N. Fwy 2 Legend
"" EXISTING
PARTITION
" NEW PARTITION
" NEW PARTITIONTO DECK W/INSULATION
"" " EXISTING
PARTITION TAKETO DECK W/INSULATION
" HATCH INDICATESNEW MILLWORK(RE: ELEVATIONS)
11OFFERING MEMORANDUM
SITE PLAN
VisitorParking
Existing Building
Existing Parking Garage
(5/1,000 parking)
INT
ER
ST
AT
E 4
5
67 Total Surface Parking Spaces
64 regular spaces3 handicap spaces
TOTAL - 67 SPACES
10700 NORTH FREEWAY
FOR MORE INFO:
MICHELLE WOGANExecutive Vice President
713.270.3348
SCOTT MYERSManaging Director
512.314.3571
PAULA MUSASenior Associate
713.231.1630