TEAS CROSSING
CONROE, TX (HOUSTON MSA)
CONROE NORTH INDUSTRIAL PARK
1,655 ACRES
CONROE MARKETPLACE
104,787VPD
16,320 VPD THE WOODLANDS VALUE ADD OPPORTUNITY
FUTURE DEVELOPMENT
Teas Crossing
OFFERING SUMMARY
*Proforma Cap Rate adjusted to include TI/LC. See page 8.
• Value-Add Opportunity at an Attractive Basis: Teas Crossing presents an opportunity to acquire an anchored shopping center with freeway exposure in a booming Texas suburb at approximately 50% of replacement cost and with current occupancy 25% below market.
• One of the Fastest Growing Cities in America: Conroe ranked No. 6 among the top 100 Fastest Growing Cities in America . Link: SmartAsset Study
• Home Growth in Immediate Area: There are over 10,000 new homes planned within a 10-minute drive of Teas in the next 10 years.
• Long-Term Tenancy: 73% of the rental income is from tenants that have occupied space for over 10 years.
• Medical Tenancy: 35% of the rental income is from medical tenants.
• Frontage and Visibility: Over 1,000 feet of prime frontage on Interstate 45, one of Texas’ busiest highways, with visibility to 104,000+ vehicles per day.
• Sagecrest Preserve Community: KB Homes has planned 351 homes across 383 acres directly behind Teas Crossing. A direct access road is planned to go from I-45 through Teas Crossing to Sagecrest homes.
• The Woodland Hills: Located less than a 5-minute drive from Teas Crossing, the Howard Hughes masterplanned community will have 4,600 homes spanning 2,000 acres at completion.
• Conroe Park North: Located less than three miles from Teas Crossing, Conroe Park North is a 1,655-acre industrial park, home to more than 40 companies and 3,000+ employees.
Conroe, TX
• Conroe is one of the fast-growing cities in America - ranked No. 6 among top 100 US cities for economic and population growth for 2022
• The County seat of Montgomery County, within the Houston-The WoodlandsSugar Land metropolitan area
• Conroe has doubled in population since 2000; currently over 100,000 residents
• The city is bordered by 22,000 acre Lake Conroe, Sam Houston National Forest and W. Goodrich Jones State Forest
• Growth driven by the surge in employment and job opportunities, proximity and ease of access to downtown Houston and unique amenities, such as Lake Conroe.
• Low cost of living continues to drive population expansion as well as residential home development
• With Conroe growing at a faster rate than any other city in the nation, the city’s expansion - both in number of residents and its borders through annexation - is sparking a building boom
(1)
A5The Dental Centre of Conroe31905.54%3/19/20123/31/2032$93,588
A7Freedom Chiropractic 21633.75%2/17/20135/31/2026$54,072
A9Massage Envy (2)
A14Weng's Wok
B1Benihana (3) 692812.03%3/25/20233/31/2038$173,225
C3Uniform Factory Outlet of Texas41747.25%10/6/202311/30/2028$58,436
D3Nails of America 34155.93%10/26/201210/31/2027$102,450
(1) 8% CAM Cap on prior year common area expenses (2) 6% Cumulative CAM Cap on 2023 base year (3) 3% Controllable CAM Cap
(4) 7% CAM cap on 2021 Base Year *Analysis takes into consideration a 12-month hold from 02/01/2024.
DBA
Locations
Line of Business
Benihana
116 Locations
Benihana is the leading Japanese restaurant chain in the United States. Our Benihana restaurants are a place to meet new friends, celebrate special occasions or just enjoy an entertaining meal. Our highly skilled teppanyaki chefs slice and dice your meal on teppanyaki grills, providing entertainment as you enjoy traditional Japanese cooking using American favorites like steak, chicken, seafood and vegetables. Benihana restaurants pioneered the communal dining concept in the early 1960’s where up to eight people are seated around a Japanese hibachi grill waiting anxiously for their personal show to begin.
DBA
Firehouse Subs
Locations 1,210+ Locations
Line of Business Firehouse Subs is an American restaurant chain based in Jacksonville, Florida. It was founded in 1994 by former firefighter brothers Chris and Robin Sorensen. Firehouse Subs has over 1,210 restaurants in 46 states, Puerto Rico, Switzerland, Canada and soon Mexico, United Kingdom and The Middle East by 2024 too. People come back when they’re treated well and fed well. Turns out, people absolutely LOVE the same things as our Founders – the best meats, cheeses, and toppings we can find. Take our Hook & Ladder® Sub for example, with Virginia honey ham, smoked turkey breast, and melted Monterey Jack. People come back again and again because, unlike other sub places, we steam our meats and cheeses, releasing a rush of flavors, then stuff a serving that’s way over code on one of our toasted private-recipe sub rolls
DBA
Massage Envy
Locations 1,100+ Locations
Line of Business
Massage Envy is a nationwide wellness franchise providing massage, stretch, and skin care services. The brand is built upon the belief that regular massage, stretch, and facials are integral components of whole-body wellness and keep your body working. Positivity and empathy are the cornerstones for every member and guest who walks through the door of a Massage Envy franchised location. Massage Envy strives to earn and to keep the trust of those served by delivering exceptional and memorable service.
DBA
Locations
Line of Business
Davita Kidney Care
3,000+ Locations
DaVita is guided by its Mission—to become the provider, partner and employer of choice—and a set of Core Values—Service Excellence, Integrity, Team, Continuous Improvement, Accountability, Fulfillment and Fun—which are reinforced at all levels of the organization. We are on a quest to Build the Greatest Health Care Community the World Has Ever Seen. Learn how DaVita—which is Italian for “giving life”—is working to provide quality service to patients, partners and teammates.
DBA
Locations
Line of Business
Verizon Wireless
6,300+ Locations
Verizon Communications Inc. (NYSE, Nasdaq: VZ) was formed on June 30, 2000 and is one of the world’s leading providers of technology and communications services. Headquartered in New York City and with a presence around the world, Verizon generated revenue of 136.8 billion in 2022. The company offers voice, data and video services and solutions on its award-winning networks and platforms, delivering on customers’ demand for mobility, reliable network connectivity, security and control. Verizon was the first company in the world to launch commercial 5G for mobility, fixed wireless and mobile edge computing.
DBA SAS Shoes
Locations
Line of Business
100+ Locations
They started small, with just 13 shoemakers and no marketing beyond word of mouth. The SAS reputation grew and became a name people could trust for comfortable, quality footwear. In 1985, SAS opened a factory in Del Rio, Texas, keeping their business in Texas while allowing for expansion. Carried in 100+ SAS stores and in retailers in the United States, Canada, Mexico, Australia, Korea, Kuwait, UAE, Saudi Arabia, Panama, Chile, Israel and England —the San Antonio Shoemakers brand is a humble American success story, and continues to be a family-owned enterprise driven by an obsession with fit and quality.
LAKE CONROE
CHAMBERS CREEK
4,800 LOTS
200 MILES TO DALLAS
THE MARKET AT WILLIS
M/I HOMES & LENNAR
262 ACRES
900 LOTS
WOODLAND HILLS
2,500 ACRES
4,800 LOTS
WATERCREST 800 LOTS
104,787 VPD
TEAS CROSSING TEASWOOD 326+ LOTS
40 MILES TO DOWNTOWN HOUSTON
CONROE NORTH INDUSTRIAL PARK
DEISON TECHNOLOGY PARK OUTLETS AT CONROE
CONROE-NORTH HOUSTON REGIONAL AIRPORT
TEAS CROSSING
44 miles to Houston’s CBD
Houston, TX
OVERVIEW
Houston is the most populous city in Texas and the fourth-most populous city in the U.S., with an estimated 2020 population of 2,304,580. The seat of Harris County, Houston is the principal city of the Greater Houston metropolitan area, which is the fifth most populous MSA in the country (2021 population estimate of 7,206,841). Houston has one of the fastestgrowing and most diverse populations anywhere in the world. From 2010 to 2018, Houston added 1.1 million new residents, an 18.2 percent increase, the fastest rate of population growth among the 10 most populous U.S. Metros.
The Houston region is made up of 12 unique counties, and the region’s geographic location makes it easy to move both goods and people around the globe. Houston's strategic, central location coupled with the infrastructure of four of the country's largest ports, two international airports and major highway and rail service make this a dynamic hub for a large cross-section of industries. As these industries digitize, Houston is a hotbed of rapid technological development thanks to access to customers and expertise.
Houston’s economy has a broad industrial base in energy, manufacturing, aeronautics, and
transportation. Only New York City is home to more Fortune 500 companies. The city is also home of the Texas Medical Center, the world's largest concentration of health care and research institutions, and NASA's Johnson Space Center. The Port of Houston ranks first in the U.S. in international waterborne tonnage handled and second in total cargo tonnage handled. Houston is ranked third in the entire world in the Financial Times Cities of the Future global rankings. Houston secures the third spot for being “a reputable talent hub,” boasting five of the world’s Top 500 universities and placing second in the world in business expansion with 53 new projects between 2015 and 2020. Houston has many cultural institutions and exhibits which attract more than 7 million visitors a year to the Houston Museum District. The U.S. Bureau of Economic Analysis (BEA) estimates Houston’s gross domestic product (GDP) at $512.2 billion in 2019, ranking it as the nation’s seventh largest metro economy. The Houston region has a GDP greater than 37 states and accounts for 27.8 percent of Texas’ GDP.
Once predominantly oil and gas focused, today Houston is a diverse, vibrant metro with a dynamic quality of life and a variety of growing industries.
QUICK STATS
1 st Most-Populous City in the State of Texas
3rd Best Global Cities of the Future (Financial Times, 2020)
4th Most-Populous City in the United States
7th Largest Metro Economy in the United States
24
Fortune 500 Companies Call Houston Home (Fortune)
10,52722,04873,333
2,4385,36011,062
4,1448,31417,905
3,1196,37814,036
1,8714,17610,126
2,3164,39611,151
776 1,4365,823
1,5742,39010,521
1,2532,48812,058
CONFIDENTIALITY AGREEMENT
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 STRIVE and it should not be made available to any other person or entity without the written consent of STRIVE. 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 STRIVE.
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. STRIVE 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, STRIVE has not verified, and will not verify, any of the information contained herein, nor has STRIVE 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 STRIVE AGENT FOR MORE DETAILS.
Commercial Disclaimer
STRIVE hereby advises all prospective purchasers of commercial property as follows:
The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, STRIVE has not and will not verify any of this information, nor has STRIVE conducted any investigation regarding these matters. STRIVE makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.
As the Buyer of a commercial 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. STRIVE 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 commercial 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 commercial 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 locations 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 tenants 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 tenants 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 leases, including the likelihood of locating replacement tenants if any of the current tenants should default or abandon the property, and the lease terms that Buyer may be able to negotiate with any potential replacement tenants 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 STRIVE and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this commercial property.
Information About Brokerage Services
Texas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.
TYPES OF REAL ESTATE LICENSE HOLDERS:
• A BROKER is responsible for all brokerage activities, 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 information about the property or transaction received by the broker;
• Answer the client’s questions and present any offer to or counter-offer from the client; and
• Treat all parties to a real estate transaction 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 written listing to sell or property management agreement. An owner’s agent must perform the broker’s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information 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 written representation agreement. A buyer’s agent must perform the broker’s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by th e seller or seller ’s agent.
AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. A broker who acts as an intermediary:
• Must treat all parties to the transaction impartially and fairly;
• May, with the parties’ written 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 instructions of each party to the transaction.
• Must not, unless specifically authorized in writing to do so by the party, disclose:
ӽ that the owner will accept a price less than the written asking price;
ӽ that the buyer/tenant will pay a price greater than the price submitted in a written offer; and
ӽ any confidential information or any other information that a party specifically instructs the broker in writing 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 transaction 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 duties and responsibilities to you, and your obligations under the representation 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 notice is being provided for information purposes. It does not create an obligation for you to use the broker’s services. Please acknowledge receipt of this notice below and retain a copy for your records.