little Woodrow`s –Absolute nnn

SUBJECT PROPERTY
EXCLUSIVE OFFERING | $2,873,000 – 6.5% CAP
little Woodrow’s – Absolute nnn
2535 Babcock rd., san Antonio, TX
214.915.8890
MARK WHEELER
mark@trivanta.com
RUSSELL SMITH
rsmith@trivanta.com
ALEX TOWER
atower@trivanta.com
Property. 9,432+ SF building on 1.16+ acre site.
Tenant. Little Woodrow’s | 14 Locations in Texas
Lease structure. 10-year absolute NNN lease with 9+ years remaining. 10% rent increases every 5 years in Primary Term & Options.
Location. Little Woodrow’s is located along Babcock Rd, (40,000 VPD) an arterial northwest-southeast passageway, which connects the northwestern-portion of
San Antonio to its central business district. Within a 3-mile radius of the site, the population is 135,765. Little Woodrow’s is located in the middle of the San Antonio
medical district and is surrounded by multiple medical facilities, including the Christus Santa Rosa Hospital, VA Hospital, and the University Hospital. Due to the
accessibility and location of the trade area, many national credit tenants have developed throughout. National Credit Tenants in the immediate trade area include
Gold’s Gym, HEB, Walgreens, CVS, 7-Eleven, Starbucks, Chick-fil-a, McDonald’s, Taco Bell, Subway, and many others.
TABLE OF CONTENTS | DISCLAIMER
Little Woodrow’s
2535 Babcock rd., san Antonio, TX
PAGE 1:
COVER
PAGE 2:
TABLE OF CONTENTS | DISCLAIMER
PAGE 3:
INVESTMENT | TENANT | LEASE OVERVIEW
PAGE 4-5:
AERIAL PHOTOS
PAGE 6:
SITE PLAN
PAGE 7:
PROPERTY PHOTOS
PAGE 8:
LOCATION OVERVIEW
PAGE 9-10:
LOCATION MAPS
PAGE 11:
DEMOGRAPHICS
Disclaimer
Trivanta (“Agent”) has been engaged as an agent for the sale of the property located along
2535 Babcock Rd., San Antonio, TX by the owner of the Property (“Seller”). The Property is
being offered for sale in an “as-is, where-is” condition and Seller and Agent make no
representations or warranties as to the accuracy of the information contained in this
Offering Memorandum. The enclosed materials include highly confidential information and
are being furnished solely for the purpose of review by prospective purchasers of the
interest described herein. The enclosed materials are being provided solely to facilitate the
prospective investor’s own due diligence for which it shall be fully and solely responsible.
The material contained herein is based on information and sources deemed to be reliable,
but no representation or warranty, express or implied, is being made by Agent or Seller or
any of their respective representatives, affiliates, officers, employees, shareholders,
partners and directors, as to the accuracy or completeness of the information contained
herein. Summaries contained herein of any legal or other documents are not intended to be
comprehensive statements of the terms of such documents, but rather only outlines of
some of the principal provisions contained therein. Neither the Agent nor the Seller shall
have any liability whatsoever for the accuracy or completeness of the information contained
herein or any other written or oral communication or information transmitted or made
available or any action taken or decision made by the recipient with respect to the Property.
Interested parties are to make their own investigations, projections and conclusions without
reliance upon the material contained herein. Seller reserves the right, at its sole and
absolute discretion, to withdraw the Property from being marketed for sale at any time and
for any reason. Seller and Agent each expressly reserves the right, at their sole and
absolute discretion, to reject any and all expressions of interest or offers regarding the
Property and/or to terminate discussions with any entity at any time, with or without notice.
This offering is made subject to omissions, correction of errors, change of price or other
terms, prior sale or withdrawal from the market without notice. Agent is not authorized to
make any representations or agreements on behalf of Seller. Seller shall have no legal
commitment or obligation to any interested party reviewing the enclosed materials,
performing additional investigation and/or making an offer to purchase the Property unless
and until a binding written agreement for the purchase of the Property has been fully
executed, delivered, and approved by Seller and any conditions to Seller’s obligations
hereunder have been satisfied or waived. By taking possession of and reviewing the
information contained herein, the recipient agrees that (a) the enclosed materials and their
contents are of a highly confidential nature and will be held and treated in the strictest
confidence and shall be returned to Agent or Seller promptly upon request; and (b) the
recipient shall not contact employees or tenants of the Property directly or indirectly
regarding any aspect of the enclosed materials or the Property without the prior written
approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied
or otherwise reproduced without the prior written authorization of Seller and Agent.
2
INVESTMENT OVERVIEW
Little Woodrow’s
2535 Babcock rd., san Antonio, TX
PRICE | CAP RATE:
$2,873,000 | 6.5%
LEASE OVERVIEW
NET OPERATING INCOME:
$186,720
Initial Lease Term:
10-Years, Plus 2, 5-Year Options to Renew
BUILDING AREA:
9,432+ Square Feet
Projected Rent Commencement:
November 2015
LAND AREA:
1.16+ Acres
Projected Lease Expiration:
November 2025
Lease Type:
Absolute NNN
YEAR BUILT | RENOVATED:
1998 | 2014
Rent Increases:
10% every 5-Years in Primary Term & Options
OWNERSHIP:
Fee Simple Interest
Year 1-5 Annual Rent (Current):
$186,720
OCCUPANCY:
100%
Year 6-10 Annual Rent:
$205,392
Year 11-15 Annual Rent:
Market Rental Rate
Year 16-20 Annual Rent:
Market Rental Rate
TENANT OVERVIEW
Lessee: Babcock Billiards – LW, LLC
Guarantor: “Parent Company”
LITTLE WOODROW’S | www.littlewoodrows.com
Little Woodrow’s, which opened its first location in 1995, is a timeless neighborhood bar that features a comfortable atmosphere with both indoor seating and outdoor
patio. The concept has evolved along with consumers trends and is a favorite for regular and loyal customers that seek a causal night out with friends on any given night
of the week. All little Woodrow’s locations feature a kitchen or an adjacent restaurant, providing customers a high quality, enjoyable dining experience. On average, Little
Woodrow’s drink menu showcases more than 200 items, offering more than 100 beers, as well as full complement ciders, wines, and liquors. Little Woodrow's currently
has 14 locations throughout Texas, accommodating from 120 up to 375 customers on average and produce average unit sales of $1.7 million.
The Company, a large regional multi-unit restaurant and entertainment operator, currently operates multiple restaurants and entertainment bars in two states under two
proven, well-recognized and differentiated concepts; operating under Little Woodrow’s and Fast Eddie's.
3
AERIAL PHOTO
Little Woodrow’s
2535 Babcock rd., san Antonio, TX
Medical
Medical
Medical
4
AERIAL PHOTO
Little Woodrow’s
2535 Babcock rd., san Antonio, TX
Christus Santa Rosa Hospital
Broadstone Medical
Apartments
The District at
Medical Center
Southwestern
Children’s, PA
Wurzbach
Tower
Galen College
of Nursing
University
Hospital
AT&T
Facility
VA Hospital
Oak Hills
Medical Center
5
SITE PLAN
Little Woodrow’s
2535 Babcock rd., san Antonio, TX
6
PROPERTY PHOTOS
Little Woodrow’s
2535 Babcock rd., san Antonio, TX
7
LOCATION OVERVIEW
Little Woodrow’s
2535 Babcock rd., san Antonio, TX
IMMEDIATE TRADE AREA
SAN ANTONIO-NEW BRAUNFELS MSA
Little Woodrow’s is located along Babcock Rd, (40,000 VPD) an arterial
northwest-southeast passageway, which connects the northwestern-portion of
San Antonio to its central business district. Within a 3-mile radius of the site,
the population is 135,765.
San Antonio-New Braunfels, colloquially referred to as Greater San Antonio, is
an eight-county metropolitan area with a population of 2,194,927 (2010 US
Census). San Antonio’s unique geographical position connects the east and
west coasts, Canada, Mexico, Central and South America. Interstate highways
connect San Antonio to the major Texas population centers and to primary
border crossing points into Mexico including Laredo, Del Rio, Eagle Pass and
the ports at Corpus Christi and Houston.
Little Woodrow’s is located in the middle of the San Antonio medical district and
is surrounded by multiple medical facilities, including the Christus Santa Rosa
Hospital, VA Hospital, and the University Hospital. Due to the accessibility and
location of the trade area, many national credit tenants have developed
throughout. National Credit Tenants in the immediate trade area include Gold’s
Gym, HEB, Walgreens, CVS, 7-Eleven, Starbucks, Chick-fil-a, McDonald’s,
Taco Bell, Subway, and many others.
SAN ANTONIO, TX
San Antonio is the 2nd largest city in the state of Texas and the 7th largest city
in the United States, with a population of over 1.3 million. San Antonio also
serves as the seat of Bexar County (population: 1,714,773).
San Antonio has a strong military presence—it is home to Fort Sam Houston,
Lackland Air Force Base, Randolph Air Force Base, Brooks City-Base, Camp
Bullis, and Camp Stanley. The defense industry in San Antonio employs over
89,000 people and provides a $5.25 billion annually to the city’s economy.
The South Texas Medical Center consists of 900 acres of medical-related
facilities in NW San Antonio. The center directly serves 38 Texas counties,
consists of forty-five medically related institutions: separate medical, dental and
nursing schools, five higher educational institutions, twelve hospitals, and five
specialty institutions. These facilities combined currently total over 4,200 beds.
More than $1 billion in new construction projects are currently planned between
2012 and 2014.
For visitors and locals alike, San Antonio is more than the Alamo, the River
Walk, and the birthplace of Chili. The city blends a dynamic history, people,
and culture into a unique offering of art, institutions, events, restaurants, and
nightlife found nowhere else. Over 20 million tourists visit the city and its
attractions every year, which provides over $10.7 billion and 100,000 jobs to
the local economy.
As a result of this combination of ideal location and quality infrastructure more
than 50% of the total goods flowing between the US and Mexico travel through
San Antonio before reaching their destinations worldwide. Additionally, San
Antonio has become a growing business center for Mexican nationals, mostly
from a high socioeconomic background, and Mexican companies that seek the
stability and safety of the US during the ongoing drug war in Mexico. As a
result, hundreds of businesses and thousands of jobs have been created in
San Antonio in the past decade. In result, Greater San Antonio experienced a
22% population increase since Census 2000. Greater San Antonio has a
diversified economy with four primary focuses: financial services; government;
health care, and tourism.
Greater San Antonio is home to 2 of the 140 Fortune Global 500
headquartered in the US: Valero Energy Corp (#33) and Tesoro Petroleum
Corp (#317). Additionally, 5 Fortune 500 companies call the MSA home:
Valero; Tesoro; USAA; Clear Channel Communications; and NuStar Energy.
H-E-B, the 19th largest private company in the United States, is also
headquartered in San Antonio. Other notable companies with headquarters in
the MSA include Kinetic Concepts, Frost National Bank, Harte-Hanks, Eye
Care Centers of America, Bill Miller Bar-B-Q Enterprises, Taco Cabana,
WhataBurger, Rackspace, and Carenet Healthcare Services. Additionally,
Nationwide Mutual Insurance, Kohl’s, Allstate, Chase Bank, Philips, Wells
Fargo, Toyota, Medtronic, Sysco, Caterpillar, AT&T, West Corp, Citigroup,
Boeing, QVC, and Lockheed Martin all have regional headquarters in the city.
The city is home to 31 higher education facilities (that serve over 100,000
students) including campuses of the University of Texas and Texas A&M as
well as top-rated private universities such as Trinity University and St. Mary’s
University.
8
LOCATION OVERVIEW
Little Woodrow’s
2535 Babcock rd., san Antonio, TX
9
LOCATION MAP
Little Woodrow’s
2535 Babcock rd., san Antonio, TX
10
DEMOGRAPHICS
Little Woodrow’s
2535 Babcock rd., san Antonio, TX
2535 Babcock Rd
2535 Babcock Rd
1 mi radius 3 mi radius 5 mi radius
1 mi radius 3 mi radius 5 mi radius
2010 Census Population
14,986
126,709
354,725
2000 Census Population
Projected Annual Growth 2015 to 2020
13,522
1.6%
117,678
1.5%
320,876
1.5%
Historical Annual Growth 2000 to 2015
1.6%
1.0%
1.0%
2015 Estimated Households
8,314
60,039
146,317
2020 Projected Households
2010 Census Households
8,827
7,561
63,323
56,655
154,342
140,904
2000 Census Households
6,695
51,668
124,069
Projected Annual Growth 2015 to 2020
Historical Annual Growth 2000 to 2015
1.2%
1.6%
1.1%
1.1%
1.1%
1.2%
INCOME
MARITAL STATUS
& GENDER
AGE
2015 Est. Population Under 10 Years
11.4%
12.6%
13.2%
2015 Est. Population 10 to 19 Years
8.5%
10.7%
12.9%
2015 Est. Population 20 to 29 Years
2015 Est. Population 30 to 44 Years
27.1%
21.9%
21.2%
20.8%
18.1%
20.3%
2015 Est. Population 45 to 59 Years
15.1%
16.6%
17.7%
2015 Est. Population 60 to 74 Years
2015 Est. Population 75 Years or Over
9.7%
6.4%
11.7%
6.4%
12.2%
5.7%
2015 Est. Median Age
31.8
33.7
34.1
2015 Est. Male Population
2015 Est. Female Population
47.9%
52.1%
48.4%
51.6%
48.5%
51.5%
2015 Est. Never Married
44.6%
37.7%
35.5%
2015 Est. Now Married
29.8%
34.9%
39.2%
2015 Est. Separated or Divorced
2015 Est. Widowed
20.9%
4.8%
21.9%
5.5%
20.1%
5.2%
2015 Est. HH Income $200,000 or More
1.4%
1.9%
2.8%
2015 Est. HH Income $150,000 to $199,999
1.0%
2.2%
2.9%
2015 Est. HH Income $100,000 to $149,999
2015 Est. HH Income $75,000 to $99,999
6.5%
9.2%
9.0%
10.1%
10.5%
11.1%
2015 Est. HH Income $50,000 to $74,999
2015 Est. HH Income $35,000 to $49,999
20.0%
15.3%
18.6%
15.9%
18.8%
14.3%
2015 Est. HH Income $25,000 to $34,999
15.3%
12.2%
11.7%
2015 Est. HH Income $15,000 to $24,999
2015 Est. HH Income Under $15,000
12.5%
18.8%
13.3%
16.9%
12.5%
15.3%
2015 Est. Average Household Income
$47,347
$54,011
$60,272
2015 Est. Median Household Income
2015 Est. Per Capita Income
$39,326
$23,681
$44,538
$23,942
$49,795
$23,816
OCCUPATION
371,084
398,838
2015 Est. Labor Population Age 16 Years or Over
13,920
110,041
294,359
2015 Est. Civilian Employed
63.6%
63.9%
62.8%
2.0%
2.1%
2.2%
2015 Est. in Armed Forces
2015 Est. not in Labor Force
0.2%
34.2%
0.4%
33.6%
0.3%
34.8%
2015 Labor Force Males
2015 Labor Force Females
47.2%
52.8%
47.7%
52.3%
47.7%
52.3%
2010 Occupation: Population Age 16 Years or Over
7,705
62,043
167,467
2010 Mgmt, Business, & Financial Operations
10.2%
13.5%
13.4%
2010 Professional, Related
2010 Service
33.0%
16.7%
24.0%
19.1%
21.3%
20.0%
2010 Sales, Office
27.4%
28.9%
28.7%
0.3%
5.5%
0.3%
8.0%
0.3%
8.8%
2015 Est. Civilian Unemployed
2010 Farming, Fishing, Forestry
2010 Construction, Extraction, Maintenance
2010 Production, Transport, Material Moving
TRANSPORTATION
TO WORK
135,765
145,789
TRAVEL TIME
16,666
18,034
CONSUMER EXPENDITURE
POPULATION
HOUSEHOLDS
2015 Estimated Population
2020 Projected Population
LABOR FORCE
San Antonio, TX 78229
San Antonio, TX 78229
7.0%
6.3%
7.7%
2010 White Collar Workers
2010 Blue Collar Workers
70.5%
29.5%
66.3%
33.7%
63.3%
36.7%
2010 Drive to Work Alone
83.8%
81.3%
81.5%
2010 Drive to Work in Carpool
7.6%
8.6%
9.7%
2010 Travel to Work by Public Transportation
2010 Drive to Work on Motorcycle
0.9%
0.3%
2.9%
0.2%
2.7%
0.2%
2010 Walk or Bicycle to Work
2010 Other Means
2.3%
1.5%
2.8%
1.5%
2.0%
1.4%
2010 Work at Home
3.6%
2.8%
2.6%
2010 Travel to Work in 14 Minutes or Less
30.7%
28.0%
23.2%
2010 Travel to Work in 15 to 29 Minutes
2010 Travel to Work in 30 to 59 Minutes
49.8%
18.4%
46.4%
22.0%
48.0%
25.7%
2010 Travel to Work in 60 Minutes or More
1.1%
3.6%
3.1%
2010 Average Travel Time to Work
18.8
19.7
21.0
2015 Est. Total Household Expenditure
2015 Est. Apparel
$350 M
$12.1 M
$2.76 B
$95.7 M
$7.21 B
$251 M
2015 Est. Contributions, Gifts
$21.0 M
$170 M
$461 M
2015 Est. Education, Reading
$12.3 M
$100 M
$269 M
2015 Est. Entertainment
$19.2 M
$152 M
$400 M
2015 Est. Food, Beverages, Tobacco
$55.8 M
$435 M
$1.13 B
2015 Est. Furnishings, Equipment
2015 Est. Health Care, Insurance
$11.3 M
$32.3 M
$90.8 M
$250 M
$241 M
$644 M
2015 Est. Household Operations, Shelter, Utilities
2015 Est. Miscellaneous Expenses
$109 M
$5.41 M
$858 M
$41.9 M
$2.24 B
$108 M
2015 Est. Total Businesses
1,719
9,702
16,697
2015 Est. Personal Care
$4.59 M
$36.1 M
$94.1 M
2015 Est. Total Employees
30,594
124,963
209,630
2015 Est. Transportation
$67.2 M
$527 M
$1.38 B
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