pease...budget psf budget psf budget psf real estate taxes (includes downtown mgmt) $109,770 $5.78...
TRANSCRIPT
Offering Memorandum R A R E B O U T I Q U E O P P O R T U N I T Y I N H O U S T O N C B D G R O W T H P AT H
1712P E A S E
The OfferingThis boutique property provides users or investors with an opportunity to own a unique and rare
office building in downtown Houston. The Property provides incredible access, substantial signage
and visibility to major thoroughfares, and a prime CBD location without being deep into the dense
downtown market. Future development and a clear growth path create an increased future value,
thanks to the rerouting of I-45 and expansion of the Midtown EADO and CDB markets to blend
together.
CONTACT US
Rich Pancioli
Executive Vice President
+1 713 881 0987
Corbin Janssen
Vice President
+1 713 577 1658
1712P E A S E
2
3 story, Class A office building, built in 2009
Rare boutique opportunity in CBD growth path
Additional land for additional parking or expansion of building.
Boutique modern office space with three efficient
floor plates
Ample parking in secured landscaped lot
Covered land play
Building and signage is visible from and provides direct access to I-69 and
I-45
Floor to Ceiling Glass on 2 Floors
Investment Highlights
1712 Pease | Houston, Texas 3
Pro
pe
rty
De
scri
pti
on
Size: 19,006 SF | Lot: 31,272 SF
Parking: 36 spaces in fenced lot with security gates
Design
• Contemporary glass, metal and stucco design with can-
tilevered upper floors
• Ceiling heights: 11’ 6” with no interior columns
• Interior glass wall offices and conference rooms
• Windows: advanced curtain wall system with 1” insulat-
ed low-E Oldcastle SunGlass
• Modular Arts wall sculptures in lobbies
• Zebrawood veneer paneling
• Custom-designed restrooms
Amenities
• Possible Future Space for Workout Facility including
Shower
• Full kitchen with commercial appliances
• Custom Steelcase workstations with Airtouch tables
• Roof deck with views of Downtown
• Building Signage Available
Network
• Cat 6, which supports 10Gb connections, neatly bound
and wrapped for clean installation of IT gear
• 42U Server Rack with dual-source power rails
• APC SmartUPS VT series Uninterruptible Power Supply
directly wired to server room
• Dual ethernet ports at every workstation, allowing for
separation of computer and Phone systems
1712 Pease | Houston, Texas 4
Security
• Genetec Controlled Access system--best in class, fully expand-
able and customizable
• 4 scanners supporting entry/exit points (Front Door, Back Door,
Main Gate, Back Gate)
• 2 Digital IP cameras and 6 Analog cameras that are connected
to analog digital converters for interfacing with the Genetec
controller
Audio System
• Nuvo Concerto multi-room Audio System installed, with 6 zones
• System is amplified by a Russound multi-zone amplifier
• Stairwells are also wired with speakers, so audio plays seamless-
ly throughout the building
Lighting
• Second and 3rd floor lobbies, and the upstairs kitchen, have
dimmable, programmable lighting controllers with scene preset
capability
Air Conditioning:
• Air conditioner is top-of-the-line Daikin VRV system
• There are 4 cooling units, 7 wall-mounted control panels, and
the master controller
Phone System
• Mitel enterprise phone system, with Mitel 5320 Phones for End
users, as well as 2 Master phones
1712 Pease | Houston, Texas 5
1712 Pease | Houston, Texas 6
§̈¦69
§̈¦45 §̈¦69
§̈¦45
Polk St
Smith
St
Fann
in S
t
Loui
sian
a St
Pease StGray St
Texas Ave
Rusk St
Franklin St
San
Jaci
nto
St
La B
ranc
h St
Clay St
Trav
is St
Capitol St
Mai
n St
Walker St
Mila
m S
t
Jefferson St
Prairie St
Webster St
McKinney St
St Joseph Pkwy
Dowlin
g St
Hou
ston
Ave
tS renie
H
Elysian St
Crawfo
rd S
t
Allen Pkwy
Bagb
y St
Bell St
Memorial Dr
Runnels St
Leeland St
rD nesneJ
York
StSa
mps
on S
t
McGowen St
Chartr
es S
t
tS ee
KcM
Navigation Blvd
Harrisburg Blvd
Pierce St
Dallas St
Lamar St
Bast
rop
St
St E
man
uel S
t
N Jac
kson
St
N C
hene
vert
St
W Dallas St
S Je
nsen
Dr
Clinton Dr
Hamilt
on S
t
N S
an J
acin
to S
t
N H
amilt
on S
t
N M
ilam
St
Congress St
N Cra
wford
St
Preston St
W Capitol St
Jack
son
StChe
neve
rt St
N Ham
ilton
St
Crawfo
rd S
t
Memorial Dr
Crawfo
rd S
t
Memorial Dr
Mai
n St
Allen Pkwy
Hei
ner
St
Chartr
es S
t
Allen Pkwy
Bagb
y St
Clay St
Navigation Blvd
Aust
in S
t
Carol
ine
St
Commerce StM
ilam
St
Trav
is S
t
Pierce St
Preston St
Bell St
Chartr
es S
t
Canal St
Congress St
Lamar St
Dallas St
Nagle
St
McKinney St
Mai
n St
Braz
os S
t
St E
man
uel S
t
Live
Oak
St
Rusk St
Garrow St
St C
harle
s St
Leeland St
Hutch
ins
St
State St
Jack
son
St
Hadley St
Delan
o St
Paig
e St
Lubbock St
Capitol St
Chene
vert
St
Ann St
Wes
t Dr
Enni
s St
Walker St
Cro
sby
St
N St C
harle
s St
Hei
ner
St
Ruiz St
Buc
kner
St
Art
hur
St
Vela
sco
St
Robin St
Baron
Baker St
Baldw
in S
t
N Nag
le S
t
Dennis St
Pease S
t
Kane St
Hamilt
on S
t
N Del
ano
St
Eas
t Dr
Palm
er S
t
Cro
sby
Sabine S
t
N Live
Oak
St
tS revli
S
Engelke St
Memorial DrW
hite
St
Trin
ity S
t
Saulnier St
Ruthven St
Andrews St
Texas Ave
W Dallas St
Clay St
Cleveland St
Shaw
St
Rober
ts S
t
N Enn
is S
t
Mid
dlet
on S
t
Drew St
tS lla
CcM
Hawkins St
N Pai
ge S
t
Sherman St
Kennedy St
Clayton HomesB
lueb
onne
t Pla
ce C
ir
Memorial Dr
N Liv
e O
ak S
t
Delan
o St
Capitol St
Preston St
Preston St
Hadley St
Lamar St
Andrews St Lamar St
Hutch
ins
St
Bell St
Dallas St
Dallas St
Rusk St
St Cha
rles
St
Palm
er S
t
Nagle
StRusk St
tS eni ba
S
£¤59
46B
47C47D
47A
47B
46A
TOYOTA CENTER
ST JOSEPH MEDICAL CENTER
DISCOVERY GREEN
MINUTE MAID PARK
BBVA COMPASS STADIUM
GEO
RGE
R. B
ROW
N
CONVE
NTIO
N CEN
TER
130,
000
VPD
210,000 VPD
Location
High Visibility and immediate access to I-45 and I-69, Downtown Houston’s major expressways
1712P E A S E
1712 Pease | Houston, Texas 7
Location
PEASE STREET
JEFFERSON STREET
CHEN
EVER
T ST
REET
1712 Pease | Houston, Texas 8
First Floor Plan
CONFERENCE
LOBBY
PARKING LOT ACCESS
PARKING LOT ACCESS
Offices 10
Storage 2
Kitchen 1
Restrooms 3
Conference 1
Open Door Office Areas 2
RE
STRO
OM
S
RESTROOM WITH SHOWER
1712 Pease | Houston, Texas 9
Second Floor Plan
CONFERENCE
COPY/PRINT
LOBBY
RESTROOMS
Offices 9
Storage 1
Restrooms 2
Conference 1
Cubicles 40
1712 Pease | Houston, Texas 10
Third Floor Plan
CONFERENCE
KIT
CH
EN
SERVER
DECK
LOBBY
COPY/PRINT
Offices 7
Storage 3
Kitchen 1
Restrooms 3
Conference 1
Cubicles 24
RESTROOMS
1712 Pease | Houston, Texas 11
MMI OFFICE EXPANSION1712 PEASE . HOUSTON, TEXAS
NORTHEAST CORNER
Existing building
Building Addition
Expansion Options
MMI OFFICE EXPANSION1712 PEASE . HOUSTON, TEXAS
SOUTHEAST CORNER
Metal fin louver shading
Metal frame to match building front
Metal Fence
Two Floors above parkingApproximately 7,400 square feet per floor
MMI OFFICE EXPANSION1712 PEASE . HOUSTON, TEXAS
SOUTHWEST CORNER
Best to move trash court to near building
Probably have to lose some spaces for structure
Exit stair
Windows with louver shading fins
Metal frame to match building front
Maintain entry door
Existing building
1712 Pease | Houston, Texas 12
MMI OFFICE EXPANSION1712 PEASE . HOUSTON, TEXAS
GARAGE ADDITION
Prefab garage provides approximately 120 spaces
Building addition
New trash court
Mechanical area
New parking entry
Existing entry staysExisting building
This version adds a first floor to yield approximately 20,000 square feet total.
Expansion Options
1712 Pease | Houston, Texas 13
Property Tax Information
Houston ISD $46,424.91
Harris Country $16,103.87
Harris County Flood District $1,106.85
Port of Houston Authority $444.36
Harris County Hospital District $6,581.90
Harris County Department of Education $199.67
Houston Community College System $3,857.38
City of Houston $22,633.83
Total 2019 Taxes $97,352.77 Improvements• Genetec Controlled Access system
• This system is top of the line, expandable and customizable
ad infinitum, with features ranging from door locks to facial
recognition and license plate tracking
– 4 scanners, supporting entry/exit points (Front Door, Back
Door, Main Gate, Back Gate)
– 2 Digital IP cameras
– 6 Analog cameras that are connected to analog digital
converters for interfacing with the Genetec controller
– Support for an integrated DMP Alarm system (Purchased
separately)
– Honeywell alarm system
• Full building was wired by Elektralink at MMI move in 2013
• Cabling is all Cat 6, which supports 10Gb connections, as
long as they are close enough to the network switch
1712 Pease | Houston, Texas 14
Operating Expenditures
2020 2019 2018
Budget PSF Budget PSF Budget PSF
Real Estate Taxes (includes downtown mgmt) $109,770 $5.78 $109,470 $5.76 $103,053 $5.42
Insurance $25,000 $1.32 $25,000 $1.32 $21,979 $1.16
Maintenance (excluding HVAC) $25,000 $1.32 $25,000 $1.32 $15,800 $0.83
Landscaping $5,000 $0.26 $12,000 $0.63 $12,000 $0.63
HVAC $3,800 $0.20 $14,000 $0.74 $13,500 $0.71
Security (cameras & badge system - no manned security) $3,000 $0.16 $12,000 $0.63 $0 $0.00
Electric (building and premises) $18,000 $0.95 $0 $0.00 $0 $0.00
Other Utilities (Water & Gas) $4,000 $0.21 $0 $0.00 $0 $0.00
Cleaning $18,000 $0.95 $24,000 $1.26 $24,000 $1.26
Management Fees $6,617 $0.35 $12,000 $0.63 $12,000 $0.63
Other $9,000 $0.47 $6,500 $0.34 $6,311 $0.33
CA Expenses $227,187 $11.95 $239,970 $12.63 $208,643 $10.98
Total Building:
Real Estate Taxes $109,770 $5.78 $109,470 $5.76 $103,053 $5.42
Insurance $25,000 $1.32 $25,000 $1.32 $21,979 $1.16
Maintenance & Repair $33,800 $1.78 $51,000 $2.68 $41,300 $2.17
Security $3,000 $0.16 $12,000 $0.63 $0 $0.00
Utilities $22,000 $1.16 $0 $0.00 $0 $0.00
Cleaning $18,000 $0.95 $24,000 $1.26 $24,000 $1.26
Management Fees $6,617 $0.35 $12,000 $0.63 $12,000 $0.63
Other $9,000 $0.47 $6,500 $0.34 $6,311 $0.33
TOTAL BUDGET $227,187 $11.95 $239,970 $12.63 $208,643 $10.98
Downtown Management Assessment $6,000.00 $5,700.00 $5,700.00
1712 Pease | Houston, Texas 15
DISCLOSURE AND AGREEMENT
Affiliated Business Disclosure
CBRE, Inc. operates within a global family of companies with many subsidiaries and
related entities (each an “Affiliate”) engaging in a broad range of commercial real
estate businesses including, but not limited to, brokerage services, property and
facilities management, valuation, investment fund management and development.
At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow
Company, may have or represent clients who have competing interests in the same
transaction. For example, Affiliates or their clients may have or express an interest
in the property described in this Memorandum (the “Property”), and may be the
successful bidder for the Property. Your receipt of this Memorandum constitutes
your acknowledgement of that possibility and your agreement that neither CBRE,
Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or
involvement in the sale or purchase of the Property. In all instances, however, CBRE,
Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’
length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and
its Affiliates will conduct their respective businesses in a manner consistent with the
law and all fiduciary duties owed to their respective client(s).
Confidentiality Agreement
Your receipt of this Memorandum constitutes your acknowledgement that (i) it is
a confidential Memorandum solely for your limited use and benefit in determining
whether you desire to express further interest in the acquisition of the Property, (ii)
you will hold it in the strictest confidence, (iii) you will not disclose it or its contents
to any third party without the prior written authorization of the owner of the Prop-
erty (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum
in any manner detrimental to the Owner or CBRE, Inc.
If after reviewing this Memorandum, you have no further interest in purchasing the
Property, kindly return it to CBRE, Inc.
Disclaimer
This Memorandum contains select information pertaining to the Property and the
Owner, and does not purport to be all-inclusive or contain all or part of the informa-
tion which prospective investors may require to evaluate a purchase of the Property.
The information contained in this Memorandum has been obtained from sources be-
lieved to be reliable, but has not been verified for accuracy, completeness, or fitness
for any particular purpose. All information is presented “as is” without representation
or warranty of any kind. Such information includes estimates based on forward-look-
ing assumptions relating to the general economy, market conditions, competition
and other factors which are subject to uncertainty and may not represent the
current or future performance of the Property. All references to acreages, square
footages, and other measurements are approximations. This Memorandum describes
certain documents, including leases and other materials, in summary form. These
summaries may not be complete nor accurate descriptions of the full agreements
referenced. Additional information and an opportunity to inspect the Property may
be made available to qualified prospective purchasers. You are advised to inde-
pendently verify the accuracy and completeness of all summaries and information
contained herein, to consult with independent legal and financial advisors, and care-
fully investigate the economics of this transaction and Property’s suitability for your
needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT
YOUR OWN RISK.
The Owner expressly reserves the right, at its sole discretion, to reject any or all
expressions of interest or offers to purchase the Property, and/or to terminate
discussions at any time with or without notice to you. All offers, counteroffers, and
negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have
any legal commitment or obligation except as set forth in a fully executed, definitive
purchase and sale agreement delivered by the Owner.
Copyright Notice
© 2019 CBRE, Inc. All Rights Reserved.
• R A R E B O U T I Q U E O P P O R T U N I T Y I N H O U S T O N C B D G R O W T H P AT H
1712P E A S E
Rich PancioliExecutive Vice President
+1 713 881 0987
Corbin JanssenVice President
+1 713 577 1658