PEASE...Budget PSF Budget PSF Budget PSF Real Estate Taxes (includes downtown mgmt) $109,770 $5.78...

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

[email protected]

Corbin Janssen

Vice President

+1 713 577 1658

[email protected]

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

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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


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


§̈¦69

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Pease StGray St

Texas Ave

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Clay St

Trav

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Capitol St

Mai

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Walker St

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Jefferson St

Prairie St

Webster St

McKinney St

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£¤59

46B

47C47D

47A

47B

46A

TOYOTA CENTER

ST JOSEPH MEDICAL CENTER

DISCOVERY GREEN

MINUTE MAID PARK

BBVA COMPASS STADIUM

GEO

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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


Location

PEASE STREET

JEFFERSON STREET

CHEN

EVER

T ST

REET


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


Second Floor Plan

CONFERENCE

COPY/PRINT

LOBBY

RESTROOMS

Offices 9

Storage 1

Restrooms 2

Conference 1

Cubicles 40


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


MMI OFFICE EXPANSION1712 PEASE . HOUSTON, TEXAS

NORTHEAST CORNER

Existing building

Building Addition

Expansion Options


SOUTHEAST CORNER

Metal fin louver shading

Metal frame to match building front

Metal Fence

Two Floors above parkingApproximately 7,400 square feet per floor


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



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


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


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


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

[email protected]

Corbin JanssenVice President

+1 713 577 1658

[email protected]

PEASE...Budget PSF Budget PSF Budget PSF Real Estate Taxes (includes downtown mgmt) $109,770 $5.78...

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Transcript of PEASE...Budget PSF Budget PSF Budget PSF Real Estate Taxes (includes downtown mgmt) $109,770 $5.78...