birnham woods - loopnet

Birnham WoodsM A R K E T P L A C E

S P R I N G , T E X A S | C O N F I D E N T I A L O F F E R I N G M E M O R A N D U M

Now part of JLL

B I R N H A M W O O D S M A R K E T P L A C E

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BIRNHAM WOODSADDRESS 4057 Riley Fuzzel Rd, Spring, TX 77386YEAR BUILT 2018

GROSS LEASABLE AREA 98,428

LAND AREA 10.93 AcresOCCUPANCY 97.5%WTD. AVERAGE REMAINING LEASE TERM 8.0 yearsTRAFFIC COUNT 50,051 VPD on the Grand Parkway

SUMMARYTENANT SQ FT % OF BLDG. RETAIL T YPE

SINGLE TENANT OUTPARCELS CHIPOTLE 2,320 2.4% Food/Beverage SPRING CREEK BBQ 6,250 6.3% Food/BeverageMULTI TENANT OUTPARCELS WOODSON'S TAP & KITCHEN 6,737 6.8% Food/Beverage VACANT SUITE 2,469 2.5% FAJITA PETE'S 1,532 1.6% Food/Beverage FINS SWIM SCHOOL 7,000 7.1% Learning & Education CHICKEN SALAD CHICK 2,765 2.8% Food/BeverageIN-LINE RETAIL PETSMART 18,241 18.5% Pet Supply MEMORIAL HERMANN 11,061 11.2% Healthcare BLUE LION SALON 10,000 10.2% Beauty SPRINT 2,300 2.3% Service GNC 1,440 1.5% Healthcare MARBLE SLAB 1,560 1.6% Food/Beverage 1000 DEGREES 2,500 2.5% Food/Beverage GREAT CLIPS 1,200 1.2% Beauty AMAZING LASHES 1,760 1.8% Beauty NAILS OF AMERICA 3,519 3.6% Beauty INNER ELEMENT FITNESS 2,970 3.0% Fitness TT PHO 2,359 2.4% Food/Beverage DENTALOPOLIS 2,260 2.3% Healthcare T. JIN CHINA CAFÉ 2,100 2.1% Food/Beverage THE RUSTIC BRUSH 1,819 1.8% Arts & Crafts KUMON LEARNING 1,626 1.7% Learning & Education CLEAN TOUCH CLEANERS 1,440 1.5% Service POSTAL ANNEX 1,200 1.2% ServiceTOTAL SQUARE FEET 98,428 100%

N E T O P E R AT I N G I N C O M E

MONTH 1 ANNUALIZED NOI $2,603,595

YEAR 1 NOI $2,620,373

WTD. AVERAGE IN PLACE RENT $28.15

WTD. AVERAGE REMAINING LEASE TERM 8.0 Years

ROLLOVER SUMMARY

WITHIN 3 YEARS OF OPERATION 11.6%

WITHIN 5 YEARS OF OPERATION 18.2%

T E N A N T M I X

42.2%Lifestyle

36.7%Service

18.5%Specialty


11.58%6.66%

39.64%

14.14%25.40%

0%10%20%30%40%50%60%70%80%90%100%

$2,500,000

$2,600,000

$2,700,000

$2,800,000

$2,900,000

$3,000,000

$3,100,000

$3,200,000

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 +

% Expiring In-Place


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G R A N D PA R K W AY

G R A N D PA R K W AY

R I L E Y F U Z Z E L R O A D

R I L E Y F U Z Z E L R O A D

BIR

NH

AM

WO

OD

S D

RI V

E

6,700 SFNails of America

3,519 SFJin’s Chinese Cafe

2,100 SF

Kumon1,626 SF

Dentist2,260 SF

Cleaners1,440 SF

123,000 SFN.A.P.

Kroger Fuel

RusticBrush

1,819 SF

T.T. Pho2,347 SF

Inner ElementsFitness - 3,770 SFPo

stal A

nnex

1,200

SF

Amaz

ing La

sh1,7

60 S

F

AVAILABLE2,470 SF

7,000 SF

2,700 SF

99

99

1,440 SF

2,500 SF

1,560 SF

1,200 SF

2,300 SF

2,300 SF

7,888 SF

18,000 SF

N.A.P.

10,000 SF

5 0 , 0 5 1 V P D

SITE PLAN

SCHEDULED RENTAL INCOME (ANNUAL)1 Chipotle $145,0002 Spring Creek BBQ $105,0003 Pad (Woodsons, Fajita Pete’s, ML) $368,318*

4 Pad (Fin’s, Chicken Salad Chick) $281,175

PADS CAN BE SOLD SEPARATELY

2 3 41

*Inclusive of master lease


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50,051 VPD

WOODSON'S RESERVE175 Homes

$400,000-$750,000

FUTURE REGAL THEATER Expected Completion 2020

CATHEDRAL LAKES150-Acre Mixed-Use

Development

THE MEDICAL RESORT

CANYON LAKE AT LEGEND’S RANCH

495 Homes$232,000-$330,000

LEGENDS RUN1,217 Homes

$180,000-$230,000

BIRNHAM WOODS DRIVE

BIRNHAM WOODS DRIVE

FOX RUN1,318 Homes

$200,000-$300,000

WORLDCHAMPIONS

CENTRE

®


$140,266AVERAGE 3-MILE

HOUSEHOLD INCOME

46%INCREASE IN 3-MILE

POPULATION SINCE 2010

42%BACHELOR’S DEGREE OR

HIGHER WITHIN 3-MILE

Recreated PMS

BENDERS LANDING715 Homes

$415,000 - $1,100,000


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INVESTMENT HIGHLIGHTS

L O C AT I O NIdeally positioned along the Grand Parkway and Birnham Woods Drive in the area’s primary retail corridor and

shadow anchored by KrogerProximate to Key Corporate HQ’s including ExxonMobil, HP, Southwestern Energy, American Bureau of Shipping,

and Anadarko which are fueling rooftop growthRobust Population Growth of 5% per year (double the Houston average)

Q U A L I T YModern construction built in 2018, designed for optimal storefront and signage visibility, preferred retailer

depths, and four pad buildingsThoughtfully curated and diverse tenant mix with an internet resistant blend of lifestyle (42%), service (36%), and

specialty (18%) tenantsShadow to top-tier Grocer Kroger featuring highly regarded tenants Chipotle, Memorial Hermann, Marble Slab,

1000 Degrees, Spring Creek BBQ, PetSmart, and Great Clips

S TA B I L I T YAverage tenant size is 4,000 square feet which offers investors stability and consistent incomeCurrently 97.5% leased with a Letter of Intent in process that would bring occupancy to 100%

Average remaining lease term is 8.0 years with only 21% of the property rolling within 5 years with low to mid teens levered cash on cash returns



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SPRINT, 2.3%

POSTAL ANNEX, 1.2%DRY CLEANERS, 1.5%

HEALTH

CARE

GNC, 1.5%

DENTALOPOLIS, 2.3%

MEMORIAL HERMANN,

11.2%

GREA

T CLIP

S, 1.2

% A

MAZING

LASH

ES,

1.7%

BEAUTY

NAI

LS O

F AME

RICA

, 3.5

%

BLUE LION SALON, 10.16%

THE RUSTIC BRUSH,

1.8%

INNER ELEMENT

FITNESS, 3.0%

KUMON LEARNING,

1.7%

FITNESS

ARTS & CRAFTS FINS SWIM SCHOOL,

7.11%

FOOD /

BEVERAGE

QUICKSERVICERESTAURANT

FAST

CASUALCHICKEN SALAD

CHICK, 2.8%

SPRING CREEK

BBQ, 6.3%

WOOD

SON’

S TAP

&

KITC

HEN,

6.8%

FAJITA PETE'S, 1.6%

MARBLE SLAB, 1.6%

CHIPOTLE, 2.4%

T. JIN CHINA CAFE,

2.1%

TT PHO, 2.4%

1,000 DEGREES,

2.5%

PET

SUPPLIES

PETSMART, 18.50%

SPECIALTY

LIFESTYLE

SERVICE

LEARNINGANDEDUCATION

TENANT BREAKDOWN BY RETAIL TYPEThe tenant profile of Birnham Woods is broken up into three main categories including Lifestyle, Service and Specialty tenant types. The tenant types are further divided by subsections to further emphasize the internet resistant tenant composition of the property.


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S P R I N G , T E X A S

Birnham Woods Marketplace is favorably positioned in Spring, Texas among Houston’s premier corporate headquarters including ExxonMobil, HP, Southwestern Energy, American Bureau of Shipping, and Anadarko. North Houston is renowned for its forested beauty, highly regarded school districts, abundant parks, and plentiful recreation areas. The exceptional lifestyle amenities, proximity to nearby employment bases, and ease of access throughout Houston via Grand Parkway have made this one of Houston’s most sought after residential areas. The ongoing infrastructure improvements and expansions to the Grand Parkway will continue to promote tremendous employment and population growth in and around Spring.

LOCATION OVERVIEW

George BushPark

LakeHouston

State Park

ArmandBayouPark

WilliamP. HobbyAirport

George BushIntercontinentalAirport

HARRISCOUNTY

LIBERTYCOUNTY

FORT BENDCOUNTY

MONTGOMERYCOUNTY

BRAZORIACOUNTY

GALVESTONCOUNTY

Greenspoint

SpringwoodsVilllage

The Woodlands

69

69

69

Westpark Tollway

Katy Frwy

Southwest Frw

y

Northwest Frwy

North Frwy

East

ex F

rwy

NorthLoop

LoopSouth

Wes

t Loo

p

East

Loo

p

Sam Houston Tollway

Sam Houston Pkwy

Pasadena Frwy

Baytown East Frwy

Sout

h Fr

wy

Fort

Pkwy

Gulf Frwy

Proposed

GrandPkwy

Proposed Grand Pkwy

Westheimer Rd

Beaumont Hwy

Ben

d

Grand Pkwy

CBD

EnergyCorridor The Galleria

Uptown DistrictGreenwayPlaza

Westchase Port of Houston

Johnson Space Center (NASA)

Houston Petrochemical


C O R P O R AT E

• HP, ExxonMobil, Southwestern Energy and American Bureau of Shipping have recently relocated their headquarters to Springwoods Village, located 5 miles from the property, making the area the epicenter for corporate relocations in Houston due to its robust surrounding amenities

• These corporate relocations have added approximately 15,000+ new employees to the area

• The population growth from these corporate relocations has greatly contributed to residential and retail growth

R E S I D E N T I A L

• Birnham Woods Marketplace is surrounded by multiple neighborhoods, including Benders Landing, Woodson’s Reserve, Harmony, and The Falls at Imperial Oaks, some of Houston’s most successful and rapidly growing master-planned communities

• Located within 1.5-miles from multiple schools including Grand Oaks High School, York Junior High, and Snyder Elementary

• Residential developments plan to add 2,500+ homes in the nearby area

• Frontage along Grand Parkway experiencing daily traffic volume over 50,051 VPD

DEMOGR APHICS1- MILE

R ADIUS3- MILE R ADIUS

5- MILE R ADIUS

2024 PROJECTED POPULATION 8,141 53,886 129,229

2019 POPULATION 7,443 49,067 118,085

2010 POPULATION 4,483 33,651 91,006

2000 POPULATION 548 10,132 50,203

PROJECTED GROWTH (2019-2024) 9.4% 9.8% 9.4%

GROWTH 2010-2019 66.0% 45.8% 29.8%

GROWTH 2000-2010 718.1% 232.1% 812.8%

BACHELOR'S DEGREE OR HIGHER 44.4% 42.1% 35.9%

AVERAGE HOUSEHOLD INCOME $144,054 $140,266 $116,221

MEDIAN HOME VALUE $230,197 $237,012 $205,747


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WOODSON'S RESERVE175 Homes

$400,000-$750,000

FUTURE REGAL THEATER Expected Completion 2020

GRAND OAKSHIGH SCHOOL

Established 2018

BRISTOL LAKES$285,000 - $420,000

LEGENDS RUN1,217 Homes

$180,000-$230,000

CREEKSIDE VILLAGE763 Homes

$116,000 - $165,000


Recreated PMS

BENDERS LANDING715 Homes

$415,000 - $1,100,000

WRIGHTS LANDING$127,000 - $306,000

WILKERSON (PLANNED)2,700 Acres

10,800 Homes

BEN CHENG HOMES(PLANNED)2,721 Acres

11,084 Homes


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T H E G R A N D PA R K WAY - A C ATA LY S T F O R G R O W T H

At 180+ miles, this circumferential highway will be the longest highway loop in the United States, traversing seven counties and encircling the Greater Houston region.

Houston’s newest outer loop is a welcome addition to the Houston area as drivers can now travel nonstop through the northwest side of Houston from I-10 near Katy to I-69/US59 northeast of Houston.

Houston has and will continue to grow beyond its city limits and Birnham Woods Marketplace is perfectly positioned to be the go-to retail hub for the next wave of growth along the Grand Parkway.

Sections E, F-1, F-2 and G were completed in 2016 and is expected to see incredible growth over the next five years sections H and I are currently underway.

LOCATION OVERVIEW



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B E N D E R SL A N D I N GE S TAT E S595 HOMES

B E N D E R SL A N D I N GE S TAT E S595 HOMES

H A R M O N Y498 HOMES

H A R M O N Y498 HOMES

S P R I N G T R A I L S1,684 HOMES

S P R I N G T R A I L S1,684 HOMES

F OX R U N1,318 HOMESF OX R U N1,318 HOMES

L E G E N D S R U N1,217 HOMES

L E G E N D S R U N1,217 HOMES

L E G E N D S R A N C H494 HOMES

L E G E N D S R A N C H494 HOMES

I M P E R I A L OA K S1,656 HOMES

I M P E R I A L OA K S1,656 HOMES

R AY F O R D R OA DR AY F O R D R OA D

NORTH AMERICANHEADQUARTERS

THE WOODLANDSMALL

GRAND PARKWAY RETA I L CORR IDOR

GRAND PARKWAY RETA I L CORR IDOR

• One of the fastest growing residential areas in Houston

• Over 118,000 reside within a 5-mile radius.

• Average household income over $115,000 within a 5-mile radius.

S U R R O U N D I N G R E S I D E N T I A L

The Grand Parkway retail corridor has a total of 770,000 square feet of retail space. Over 58% of the current supply has been built in 2016 or later. Much of this is due to the incradible forecasted poplation and employment growth that is expected to take place along the Grand Parkway. Overall, the occupany rate for the retail space is 97.4% with just 24,000 SF currently under construction. The area benefits from strong demographics combined with the proximity to thousands of new sinlge family housing communities and some of the regions largest employers.

G R A N D PA R K WAY R E TA I L C O R R I D O R

Total GLA: 770,000 SF

Occupancy: 97.40%

2019 Deliveries 0 SF

SF Under Construction: 24,000 SF



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P E T S M A RT

Square Feet: 18,241Public/Private: Public (NASDAQ: PETM)Website: www.petsmart.com

PetSmart Inc. is an American retail chain that sells animal products and offers pet services including grooming, training, boarding facilities, and daycare. PetSmart employs over 55,000 associates and operates 1,600+ retail stores across the United States, Canada, and Puerto Rico. In 2017, PetSmart acquired Chewy, an online retailer of pet supply products for a reported $3 billion. As consumer spending trends continue to shift online, PetSmart added the online business to complement its current store base. In June 2019, Chewy priced its IPO at $22 per share, valuing the retailer at $8.8 billion. Following the IPO, PetSmart will own approximately 70% of the company’s common stock and hold about 77% of the voting power. At the time of this announcement (2Q 2019), Chewy’s market cap was estimated at $8.8 billion, nearly 3x the value PetSmart aquired the company for in 2017.

M E M O R I A L H E R M A N N H E A LT H S Y S T E M

Square Feet: 11,061Public/Private: PrivateWebsite: www.memorialhermann.org

Memorial Hermann Health System is the largest not-for-profit health system in southeast Texas consisting of 16 hospitals, 8 Cancer Centers, 3 Heart & Vascular Institutes, and 27 sports medicine and rehabilitation centers, in addition to various outpatient and rehabilitation centers. Memorial Hermann offers leading-edge diagnostic technologies and treatment techniques as well as Houston’s first health information exchange, which shares vital patient data among care providers, helping to ensure patients receive the right care at the right time. In addition to various hospitals and major health centers, Memorial Hermann operates multiple urgent care facilities that provide patients access to high quality care.

MAJOR TENANT PROFILES


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MAJOR TENANT PROFILES

B L U E L I O N S A L O N S T U D I O S

Square Feet: 10,000Public/Private: PrivateWebsite: www.thesalon.blue

Blue Lion Salon is a five-star boutique salon that provides salon rentals for salon entrepreneurs. Studios offer high-end hair, nail & spa services for both men and women in beautifully designed suites with custom finishes throughout and private spa areas. Blue Lion currently operates out of 16 locations in Texas and Colorado.

C H I P O T L E M E X I C A N G R I L L

Square Feet: 2,320Public/Private: Public (NYSE: CMG)Website: www.chipotle.com

Headquartered in Newport Beach, Chipotle is an American chain of fast casual restaurants with over 2,500 locations and 64,500 employees across the United States, United Kingdom, Canada, Germany, and France. Chipotle specializes in serving tacos and Mission-style burritos with high-quality ingredients, classic cooking techniques and distinctive interior design, bringing features from the realm of fine dining to the world of quick-service restaurants.

S P R I N G C R E E K B A R B E C U E

Square Feet: 6,250Public/Private: PrivateWebsite: www.springcreekbarbeque.com

Founded in 1980, Spring Creek Barbeque is one of Texas’ best and most popular barbeque chains offering authentic family recipes for great barbeque. With 42 locations throughout Texas, Spring Creek continues to expand while providing excellent dining experiences.

I N V E S T M E N T A D V I S O RY

RYAN WESTSenior Managing DirectorT. (713) [email protected]

JOHN INDELLIDirectorT. (713) [email protected]

KATHERINE MILLERReal Estate AnalystT: (713) 852-3485 [email protected]

BRYAN STRODEReal Estate AnalystT: (713) [email protected]

F I N A N C I N G I N Q U I R I E S

MICHAEL JOHNSONDirectorT. (713) [email protected]

This Offering Memorandum has been prepared by HFF for use by a limited number of recipients. All information contained herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, expressed or implied, as to the accuracy or completeness of the information contained herein. Further, the Offering Memorandum does not constitute a representation that no change in the business or affairs of the property or the Owner has occurred since the date of the preparation of the Offering Memorandum. All analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the recipient. HFF and Owner and their respective officers, directors, employees, equity holders and agents expressly disclaim any and all liability that may be based upon or relate to the use of the information contained in this Offering Memorandum.

Additional information and an opportunity to inspect the property will be made available upon written request to interested and qualified prospective investors.

Owner and HFF each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the property and/or terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligations to any recipient reviewing this Offering Memorandum or making an offer to purchase the property unless and until such offer is approved by Owner, a written agreement for the purchase of the property has been fully executed, delivered and approved by Owner and its legal counsel, and any obligations set by Owner thereunder have been satisfied or waived.

The recipient (“Recipient”) agrees that (a) the Offering Memorandum and its contents are confidential information, except for such information contained in the Offering Memorandum, which is a matter of public record, or is provided from sources available to the public (b) the Recipient, the Recipient’s employees, agents and consultants (collectively, the “need to know parties”) will hold and treat it in the strictest of confidence, and the Recipient and the need to know parties will not, directly or indirectly, disclose or permit anyone else to disclose its contents to any other person, firm, or entity without the prior written authorization of HFF and the Owner, and (c) the Recipient and the need to know parties will not use or permit to be used this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Owner or HFF or for any purpose other than use in considering whether to purchase the property. The Recipient and the need to know parties agree to keep this Offering Memorandum and all confidential information contained herein permanently confidential and further agree to use this Offering Memorandum for the purpose set forth above. If the Recipient has no interest in the property, or if in the future the Recipient or owner discontinue such negotiations, the Recipient will return this Offering Memorandum to HFF.

9 Greenway Plaza, Suite 700Houston, Texas 77046T. (713) 852-3500F. (713) 527-8725Now part of JLL

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