COMERICA BANK GROUND LEASE - DENSE/INFILL AUSTIN, TX … · 2018. 3. 26. · Freddy’s Frozen...

Freddy’s Frozen CustardLakewood, CO

REPRESENTATICE

COMERICA BANK GROUND LEASE - DENSE/INFILL AUSTIN, TX7820 BURNET RDAUSTIN, TX 78757

Offering Memorandum

AERIAL PHOTO COMERICA BANK GROUND LEASE

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Z0070074


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Walgreen’s

BURNET RD32,210 CPD

N MOPAC EXPY170 ,510 CPD

W ANDERSON LN2 3 , 3 4 0 C P D

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COMERICA BANK GROUND LEASE



DOWNTOWNA U S T I N

BURNET RD32,210 CPD

KING OF FRANCIS CATHOLIC SCHOOL

EXECUTIVE SUMMARY


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COMERICA BANK GROUND LEASE7820 Burnet Rd

Austin, TX 78757

FINANCIAL SUMMARY

Price $5,575,500

Down Payment 100% $5,575,500

Cap Rate 5.10%

Building SF 3,554 SF

Net Cash Flow 5.10% $284,350

Year Built 2010

Lot Size 0.87 Acres

LEASE SUMMARY

Lease Type Absolute Triple-Net (NNN) Ground Lease

Tenant Comerica Bank

Roof & Structure Tenant Responsible

Rent Commencement Date October 15, 2008

Lease Expiration Date October 31, 2028

Lease Term Remaining 10 Years

Rental Increases 10% Every 5 Years

Renewal Options 3, 5 Year Options, and 1, 15 Year Option after Year 35

BASE RENT $284,350

Net Operating Income $284,350

Total Return 5.10% $284,350

EXECUTIVE SUMMARY

ANNUALIZED OPERATING DATA

LEASE YEARS ANNUAL RENT CAP RATE

11/1/18 - 10/31/23 $284,350.00 5.10%

11/1/23 - 10/31/28 $312,785.00 5.61%

OPTIONS ANNUAL RENT CAP RATE

Option 1 $344,063.50 6.17%

Option 2 $378,469.85 6.78%

Option 3 $416,316.84 7.47%

Option 4 $457,948.52 8.21%

* Seller to credit the difference in Rent from COE to Rent Increase date on 11-1-18.

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TENANT OVERVIEW

Comerica Incorporated (NYSE: CMA) is a financial servic-es company headquartered in Dallas, Texas, strategically aligned into three major business segments: the Business Bank, the Retail Bank, and Wealth Management. Com-erica focuses on relationships, and helping people and businesses be successful. In addition to Texas, Comerica Bank locations can be found in Arizona, California, Florida and Michigan, with select businesses operating in several other states, as well as in Canada and Mexico. Comerica reported total assets of $71.6 billion at Dec. 31, 2017.

The bank sponsors Comerica Park in Detroit, Michigan and Comerica Theatre in Phoenix, Arizona. It is among the 25 largest U.S. financial holding companies as of Sept. 30, 2017, the number 3 pre-paid commercial card issuer, has the highest concentration of C&I loans among the top 25 U.S. financial holding companies, the top 10 lenders for the Ex-Im Bank Working Capital Guarantee Program, and the DiversityInc top 10 regional companies for diversity.

Company Name Comerica Incorporated

Stock Symbol NYSE: CMA

Headquarters Dallas, TX

Locations 590+

Total Assets (YE 2016) $71.7 billion

Net Income (YE 2016) $.48 billion

Website www.comerica.com




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LOCATION OVERVIEWINVESTMENT HIGHLIGHTSNestled in the heart of Central Texas, Austin has been named the #1 place to live in the U.S. for 2017 by U.S. News & World Report, as well as #1 on the 2017 “Next Biggest Boom Town in the U.S.” list by Forbes. Austin is now the 11th largest city in the U.S. and is the fastest growing city by a wide margin of the 25 largest ctiies. The city’s vibrant entertainment, music, and art scene has earned Austin the title of the “Live Music Capital of the World.” Austin is home to 250 music venues as well as major music festivals including the South by Southwest music and film festival held each March and the Austin City Limits music festival held each September. The booming music industry in Austin benefits the city with thousands of jobs and hundreds of millions of dollars of music tourism revenue.

While the music industry is a major contributor to the city’s economy, other major industries in Austin include technology and pharmaceutical/biotechnology. High-tech companies with operations in Austin include Apple, Amazon, Cisco Systems, Dropbox, PayPal, Facebook, Google, Hewlett-Packard, Intel Corporation, Oracle, and Xerox. Companies with headquarters in Austin include Whole Foods Market, Keller Williams Realty, and YETI. In the 1990s, Austin adopted the nickname “Silicon Hills” after the rapid influx of technology and development companies.

Austin is home to the University of Texas at Austin which boasts over 50,950 students. The university is ranked among the top 20 public universities in the nation and has the highest-ranked business, engineering, and law programs of any university in the state of Texas. Thousands of graduates from the university’s engineering and computer science programs provide a steady source of employees that help fuel’s Austin’s technology and defense industry sectors.

As a primary tourism destination, the city offers an endless supply of restaurants, shopping centers, attractions, outdoor recreation areas, and more. Visitors can attend a performance of the Austin Symphony Orchestra, grab a bite to eat at one of the many restaurants downtown, catch a University of Texas Longhorns game, or even sail away on a Lake Austin boat cruise.

PROPERTY DESCRIPTION

Income 1-Mile 3-Miles 5-Miles

2017 Est. Average Household Income $81,032 $84,119 $91,236

2017 Est. Median Household Income $62,018 $52,989 $55,834

2017 Est. Per Capita Income $38,002 $36,498 $39,970

Population 1-Mile 3-Miles 5-Miles

2022 Projection 15,522 143,091 332,873

2017 Estimate 15,477 141,591 324,636

Growth 2017 - 2022 0.29% 1.06% 2.54%

Households 1-Mile 3-Miles 5-Miles

2022 Projections 7,317 62,182 146,002

2017 Estimate 7,234 61,343 141,357

Growth 2017 - 2022 1.14% 1.37% 3.29%

DEMOGRAPHICS

• Trophy Absolute Triple-Net (NNN) Corporate Ground Lease

• 10+ Years Remaining with 10% Increases Every 5 Years

• Outparcel to Walmart Supercenter Shopping Center

• Infill Austin - 324,635+ Residents in Growing Trade Area

• Situated 6 Miles from The University of Texas at Austin (50,950+ Enrolled)

• Located 8 Miles North of Downtown Austin

• Conveniently Located 1 Mile from Mopac Expy and U.S. Route 183

• Visible to More Than 55,000 Cars per Day Along Burnet Rd/Anderson Ln

• Close Proximity to Walmart Supercenter, LA Fitness, Target, PetSmart, Hobby Lobby, and Lowe’s

• 482,636 Daytime Employees in Surrounding Area

• Average Household Income Exceeds $91K in Trade Area

• 30 Minutes from Austin-Bergstrom International Airport

• Prestigious Allendale/Shoal Creek Location Minutes from Downtown Austin

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REGIONAL MAP REGIONAL MAP




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REGIONAL MAP

Williams-Sonoma

MAP

4 MILESSt. David’s North

Austin Medical Center

6 MILESThe University ofTexas at Austin

8 MILESDowntown

Austin

15 MILESAustin-Bergstrom

International Airport

DOWNTOWN AUSTIN

11-2-2015

Information About Brokerage ServicesTexas law requires all real estate license holders to give the following informaƟon about

brokerage services to prospecƟve buyers, tenants, sellers and landlords.

TYPES OF REAL ESTATE LICENSE HOLDERS: .• A BROKER is responsible for all brokerage acƟviƟes, 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 informaƟon about the property or transacƟon received by the broker; • Answer the client’s quesƟons and present any offer to or counter-offer from the client; and • Treat all parƟes to a real estate transacƟon 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 wriƩen lisƟng to sell or property management agreement. An owner's agent must perform the broker’s minimum duƟes above and must inform the owner of any material informaƟon about the property or transacƟon known by the agent, including informaƟon 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 wriƩen representaƟon agreement. A buyer's agent must perform the broker’s minimum duƟes above and must inform the buyer of any material informaƟon about the property or transacƟon known by the agent, including informaƟon disclosed to the agent by the seller or seller’s agent.

AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parƟes the broker must first obtain the wriƩen agreement of each party to the transacƟon. The wriƩen agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligaƟons as an intermediary. A broker who acts as an intermediary:

• Must treat all parƟes to the transacƟon imparƟally and fairly; • May, with the parƟes' wriƩen 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 instrucƟons of each party to the transacƟon. • Must not, unless specifically authorized in wriƟng to do so by the party, disclose:

ᴑ that the owner will accept a price less than the wriƩen asking price; ᴑ that the buyer/tenant will pay a price greater than the price submiƩed in a wriƩen offer; and ᴑ any confidenƟal informaƟon or any other informaƟon that a party specifically instructs the broker in wriƟng 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 transacƟon without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the 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 duƟes and responsibiliƟes to you, and your obligaƟons under the representaƟon 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 noƟce is being provided for informaƟon purposes. It does not create an obligaƟon for you to use the broker’s services. Please acknowledge receipt of this noƟce below and retain a copy for your records.

Licensed Broker /Broker Firm Name or Primary Assumed Business Name

License No. Email Phone

Designated Broker of Firm License No. Email Phone

Licensed Supervisor of Sales Agent/Associate

License No. Email Phone

Sales Agent/Associate’s Name License No. Email Phone

Regulated by the Texas Real Estate Commission

Buyer/Tenant/Seller/Landlord Initials

InformaƟon available at www.trec.texas.gov IABS 1-0

Date

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

Tim A. Speck 432723 [email protected] 972-755-5200

The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap.

This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information 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, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial 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 offering memorandum 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 has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

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

Confidentiality Agreement

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

By accepting this Marketing Brochure, you agree to treat the information contained herein regarding the lease terms as confidential and proprietary and to only use such information to evaluate a potential purchase of this net leased property.

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this in-formation, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other loca-tions is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services as well as the Property Owner and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

Net Leased Disclaimer

exclusively listedExclusively listed by:

OFFICES NATIONWIDEwww.marcusmillichap.com

TIMOTHY SPECKBroker of RecordDALLAS OFFICELicense: 432723

JAMIE MEDRESSSenior Managing DirectorPHOENIX OFFICETel: (602) 687-6778Fax: (602) [email protected]

MARK RUBLESenior Managing DirectorPHOENIX OFFICETel: (602) 687-6766Fax: (602) [email protected]

CHRIS LINDFirst Vice PresidentPHOENIX OFFICETel: (602) 687-6780Fax: (602) [email protected]

COMERICA BANK GROUND LEASE - DENSE/INFILL AUSTIN, TX … · 2018. 3. 26. · Freddy’s Frozen...

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