Although this informa on is believed to be accurate it cannot be guaranteed.
Pricing and Financial Analysis PALMETTO PLAZA
South Padre Island, TX
Investment Overview
INVESTMENT HIGHLIGHTS
Thriving Commercial Center
Outstanding frontage loca on
Heart of entertainment area
14.34% CAP poten al
With 250' of frontage and centrally located on Pa-
dre Boulevard in the Entertainment Area, this prop-
erty has endless poten al. The building entails 5
office/retail spaces with full me tenants and a two
story sec on, perfect for a restaurant. Both stories
have kitchen areas and contain exhaust systems
that have already been installed. The leasing spaces
were built to accommodate a second floor, to be
used for condo's or addi onal office space. Excellent
rental revenue and poten al. Check out this Unique
opportunity!
PALMETTO PLAZA
South Padre Island, TX
LOCATION ANNUALIZED OPERATING DATA
1817 Padre Blvd., SPI, Texas 77550
INCOME
Gross Poten al Rent $199,861
Es mated Expenses $57,212
Net Opera ng Income $142,649
Total Return 14.34% $142,649
Price $995,000
Down Pmt 100% $995,000 EXPENSES
Gross Leasable Area 13438 Adjusted Real Estate Taxes $19,212
Price /SF $74.04 Insurance 17,000
CAP Rate (pro forma) 4.34% CAM 6,600
Year Built 1954 On Site maintenance 14,400
Retail remodel 2001 TOTAL EXPENSES $57,212
Lot Size 37,500 EXPENSES/SF $4.26
Type of Ownership LLC
Although this informa on is believed to be accurate it cannot be guaranteed.
Financial Overview
PALMETTO PLAZA
South Padre Island, TX
Although this informa on is believed to be accurate it cannot be guaranteed.
Property Descrip on
PROPERTY FEATURES:
Centrally located on Padre Boulevard in the Entertainment District
The Wave (free transporta on throughout South Padre Island to Port Isabel) stops right in
front of the building
Building offers nostalgia and a feeling of Old Mexico in the beau ful murals.
Restaurant can be made into a two story restaurant. Both stories have kitchen areas and
have expensive exhaust systems already installed. These are over $10,000 new.
Upstairs provides the ability to have a living quarter and office for someone wan ng to oper-
ate a restaurant below.
The upstairs can also be made into a conference center or several bedrooms with main living
area and kitchen for large families and reunions.
The upstairs space is also able to be a separate en ty from the downstairs and will s ll com-
ply with city parking regula ons. i.e. Cigar Bar upstairs, Restaurant on the first floor
The office/retail space was built to accommodate a second floor. Whether the space is used
for condos, offices, more retail or pa o space is up to the purchaser.
A second floor above the offices would provide a third ea ng area with a beau ful, clear
view of the Bay.
This en re complex is perfect for an Ar st Row of specialty shops with accommoda on for
special events in the restaurant areas. It provides wonderful space for events with a capaci-
ty of 400 downstairs and 250+ upstairs.
PALMETTO PLAZA
South Padre Island, TX
Although this informa on is believed to be accurate it cannot be guaranteed.
Property Descrip on
HISTORICAL INFORMATION
About the Restaurant Property –
The last of the South Texas historic Palme o Inn Restaurants, the Palme o Inn on South Padre Island was
built in 1954 by Moises and Noemi Carrasco. The Island Palme o (as it has always been called) was the first
major restaurant on South Padre Island and quickly became a “must visit” des na on for tourists and locals
alike. “Come dressed as you are” was the mo o of the Island Palme o serving thousands of enchiladas and
queso to customers over the years. The Palme o Inn Restaurants have been acknowledged as being instru-
mental in defining Tex Mex cuisine in South Texas and this property retains much of that old Tex Mex charm
and character envisioned by its original creators.
Done in a Mexican style, the restaurant contains hand painted murals da ng back to the 1950’s when a cou-
ple of visi ng ar sts were hungry and offered to paint them in exchange for food. A few tacos and nachos
later, the murals graced the walls of the Island Palme o and have remained there for almost 60 years.
The second floor of the restaurant was used as living quarters for the owners and employees for many years.
As one of the best places on the Island to watch the fire works, the upstairs banquet area and pa o con nue
to host many large par es and celebra ons.
Now this bit of Tex Mex History is available, with a tons of charm and character …….a true original on
South Padre Island.
PALMETTO PLAZA
South Padre Island, TX
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Property Descrip on
Space Plan
PALMETTO PLAZA
South Padre Island, TX
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Property Descrip on
Space Study
Property Descrip on PALMETTO PLAZA
South Padre Island, TX
Although this informa on is believed to be accurate it cannot be guaranteed.
Property Descrip on
Space Study
PALMETTO PLAZA
South Padre Island, TX
Although this informa on is believed to be accurate it cannot be guaranteed.
Property Descrip on
Entertainment District Informa on
PALMETTO PLAZA
South Padre Island, TX
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Property Descrip on
Entertainment District Informa on
PALMETTO PLAZA
South Padre Island, TX
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Demographic Analysis
PALMETTO PLAZA
South Padre Island, TX
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Property Photographs
PALMETTO PLAZA
South Padre Island, TX
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Property Photographs
PALMETTO PLAZA
South Padre Island, TX
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Property Photographs
PALMETTO PLAZA
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Eleva on Cer ficate
PALMETTO PLAZA
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Eleva on Cer ficate
PALMETTO PLAZA
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Eleva on Cer ficate
PALMETTO PLAZA
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Eleva on Cer ficate
PALMETTO PLAZA
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Eleva on Cer ficate
PALMETTO PLAZA
South Padre Island, TX
Although this informa on is believed to be accurate it cannot be guaranteed.
Demographic Analysis
COMMUNITY PROFILE
The following community profile informa on is intended to help you perform relevant site selec on research on SouIsland, Texas, and is intended to serve as a star ng point.
If you do not find all the informa on that you need in order to make an informed decision about South Padre Islandcontact the South Padre Island Economic Development Corpora on office and we will be happy to provide you withma on or data that you require.
City of South Padre Island - Demographics Summary - 2009
Es mated Popula on- # of Inhabitants 5,900
Popula on 2000 census 2,838
Popula on growth from 2000 census 22%
Median Age 57.7
Average Age 52.0
Number of Households 1,827
Average Household Income $70,096
Per capita Income $36,795
Es mated to be Employed 34.6%
Master’s or Doctorate Degree Earned 15.2%
Bachelor’s Degree Earned 18.2%
PALMETTO PLAZA
South Padre Island, TX
Although this informa on is believed to be accurate it cannot be guaranteed.
Demographic Analysis
LOCATION South Padre Island, Texas is located at the eastern edge of Cameron County in the growing Rio Grande Valley of Texas. The Valley consists of four coun es. The coun es from west to east are Starr, Hidalgo, Willacy and Cameron.
UTILITIES South Padre Island is equipped to supply electrical, water, telephone and other public service needs to indus-try in the Laguna Madre Area. Electrical service can be obtained from several suppliers (www.powertochoose.org). The Laguna Madre Water District manages water and sewer needs (956-943-2626). Telecommunica on service is available through AT&T, and industrial waste disposal is provided by Allied Waste (1-800-423-7316).
Distance to Major Ci es
Monterrey 225 miles
San Antonio 285 miles
Aus n 340 miles
Houston 367 miles
Tampico 336 miles
Dallas 531 miles
Mexico City 666 miles
El Paso 815 miles
PALMETTO PLAZA
South Padre Island, TX
Although this informa on is believed to be accurate it cannot be guaranteed.
Demographic Analysis
EDUCATION The Island is within a 90-minute drive of two four-year universi es, (University of Texas at Brownsville and University of Texas Pan American), a technical and voca onal training program, a university preparatory pro-gram and the Marine Military Academy. The children of Island residents are part of the Point Isabel Inde-pendent School District.
In addi on, South Padre Island is home to the University of Texas at Brownsville (UTB) South Padre Island Campus in the old Coast Guard sta on, and nearby is UTB’s Laguna Madre Learning Center at Port Isabel High School.
LABOR Low wage costs and high produc vity levels characterize the Rio Grande Valley labor force. The local labor force is drawn from the Laguna Madre Area and the surrounding communi es of Brownsville and Los Fres-nos. The unemployment rate for Cameron County in April 2010 was 10.8% and the unemployment rate for South Padre Island is es mated to be 6.9% The current year es mated per capita income is $36,795, com-pared to an es mate of $26,410 for the United States as a whole.
Major Employers
Schli erbahn Beach Water Park 383
Sheraton South Padre Island Beach Hotel 225
Isla Grand Resort 217
City of South Padre Island 200
Blackbeard's Restaurant 180
Hilton Garden Inn 150
Louie's Backyard 130
La Quinta Inn and Suites 120
La Copa Inn 110
Sea Ranch Enterprises 85
PALMETTO PLAZA
South Padre Island, TX
Although this informa on is believed to be accurate it cannot be guaranteed.
Demographic Analysis
TAXES The State of Texas has no state income tax and allows for local tax incen ves and exemp ons from state sales tax. Local taxing discounts include a $15,000 homestead exemp on, a 20 percent exemp on on Laguna Madre Water District and City of South Padre Island taxes. Cameron County offers a $12,000 exemp on to taxpayers over the ages of 65. Ad valorem taxes are assessed and collected by the Point Isabel ISD Tax Office. The City of South Padre Island levies a 2 percent sales tax and a 7 percent hotel-motel occupancy tax. Con-tact the Cameron County Appraisal District (956-399-9322) or the websitewww.cameroncad.org.
South Padre Island Total Revenue Earned
Year 2005 2006 2007 2008 2009 2010
Property Tax 4,016,920 4,255,282 5,166,612 5,294,904 6,244,873 $6,152,850
Sales Tax 2,031,668 2,209,441 2,401,168 2,497,841 2,552,357 2,394,470
Hotel/Motel 4,777,696 5,322,385 5,355,993 4,408,809 4,691,737 5,283,701
Mixed Drink 206,974 207,117 204,316 195,171 216,613 224,166
Total Revenue 11,033,258 11,994,195 13,128,089 12,396,725 13,705,580 14,055,187
Causeway Count
7,925,169 8,008,000 8,136,813 7,760,441 8,211,184 7,829,591
Taxing En es
2011 Rates
Point Isabel Independent School District 1.081634
Cameron County .364291
City of South Padre Island .245610
South Texas ISD .049200
Texas Southmost College .162423
Laguna Madre Water District .08020
Total 1.983978
*Cents per $100
PALMETTO PLAZA
South Padre Island, TX
Although this informa on is believed to be accurate it cannot be guaranteed.
Demographic Analysis
POPULATION The resident popula on of South Padre Island in the 2000 Census was 2,422. Es mated number of inhabit-ants in 2008 is 5,900. Due to the large number of visitors, the resident popula on is only a small percentage of the total number of people who are in the City of South Padre Island at any given me. In the Resort Mar-ket Analysis produced by THK Associates in 2005, the annual visita on for South Padre Island was just over 5.1 million visits which equals an average daily popula on of approximately 14,000. South Padre Island’s popula on has a high median age of 51.77 as compared to 27 for Cameron County. The Rio Grande Valley area has been one of the fastest growing areas in the na on, with a 54 percent increase in popula on since 1980.
POPULATION South Padre Island is a year-round vaca on des na on located at prac cally the same la tude as Miami, Florida. The Island enjoys a sub-tropical environment with mild, dry winters and warm, breezy summers
Popula on Trends
1990 2000 2010
South Padre Island 1,667 2,422 2,816
Port Isabel 4,467 4,865 5,006
Cameron County 260,120 335,227 406,220
Rio GrandeValley 701,888 978,371 1,264,091
Clima c Profile
Winter Average Temp. 65 degrees
Summer Average Temp. 82 degrees
Average Daily Temp. 74 degrees
Average Sunshine Days 253 days
Average Growing Season 336 days
Average Annual Rainfall 27.6 inches
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