MILITARY MARKET PLAZA...Feb 16, 2016 · REATA REAL ESTATE INVESTMENT SALES 1100 NE Loop 410, Suite 400 San Antonio, TX 78209 TEL 210.930.4111 ... PARKING SPACES 101 parking spaces

MILITARY MARKET PLAZASAN ANTONIO, TX

EXECUTIVE SUMMARY

CONFIDENTIAL OFFERING MEMORANDUM — MILITARY MARKET PLAZA

MILITARY MARKET PLAZA

EXECUTIVE SUMMARY

6915-6927 S. ZARZAMORA STREET SAN ANTONIO, TX 78224

presented by

KEVIN CATALANI PARTNER 210.841.3237 [email protected]

REATA REAL ESTATE INVESTMENT SALES 1100 NE Loop 410, Suite 400 San Antonio, TX 78209

TEL 210.930.4111 FAX 210.930.1114

REATAREALESTATE.COM

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Information contained was obtained from sources believed reliable, however, REATA Real Estate Services, LP, makes no guarantees, warranties or representations as to the completeness or accuracy thereof. The presentation of this project is submitted subject to the errors, omissions and change of price or conditions prior to lease or withdrawal. ©REATA Real Estate Services, LP


SECTION I.. ... ... ... ... ... ... EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS

SECTION II . ... ... ... ... ... ... PROPERTY OVERVIEW SITE DESCRIPTION

LOCATOR MAP

AERIALS

SECTION III ... ... ... ... ... ... FINANCIAL OVERVIEW FINANCIAL SUMMARY

. ... ... ... ... ... ... ... ... ... ... ... ... ...*Contact broker or execute CA to access OM that contains additional financial detail

SECTION IV ... ... ... ... ... ... TRADE AREA OVERVIEW

SAN ANTONIO MARKET OVERVIEW

DEMOGRAPHIC PROFILE

SECTION V ... ... ... ... ... ... AGENCY DISCLOSURE

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DENSELY POPULATED, INFILL TRADE AREAMilitary Market Plaza is located at the corner of Southwest Military Drive and Zarzamora Street, just west of Interstate 35, one of the most densely populated areas of south San Antonio. The population immediately surrounding the site exceeds 118,000 within three miles and over 270,000 within five miles.

PROMINENT RETAIL CORRIDORMilitary Market Plaza is strategically positioned in an area known as the South Park retail trade area which is home to more than two million square feet of retail space. The trade area is anchored by South Park Mall, a 780,000 square foot regional mall located at the southeast corner of SW Military and Zarzamora, less than a half mile from the site. Additionally, H-E-B Plus! is located on the northeast corner, directly across the street from Military Market Plaza. This critical mass of retail creates a regional draw to this already densely populated sector of south San Antonio.

QUALITY TENANT MIX WITH RENTAL RATE UPSIDEThe Property has a quality mix of service and retail tenants, both national and local, resulting in a stable rent roll that caters well to the trade area. Additionally, in-place rental rates for near-term lease expirations are at or below the most recently executed lease terms, creating the ability to push rents upon rollover.

BANK GROUND LEASESMilitary Market Plaza includes two pad sites with long term ground leases to Wells Fargo and FirstMark Credit Union.

LEASEHOLD INTERESTThe opportunity to acquire the leasehold interest creates the ability for above-market yields for comparable product in this trade area.

INVESTMENT HIGHLIGHTS

EXECUTIVE SUMMARY

REATA Investment Sales has been exclusively retained to offer for sale the leasehold interest in Military Market Plaza (the “Property”), a neighborhood retail center consisting of a 20,130 square foot strip and two ground lease pad sites. The Property is located at Southwest Military Drive and Zarzamora Street in south San Antonio, an area with extremely high density and an abundance of retail traffic. The strip center component is 95% leased to a compelling lineup of service and retail users, while the two pad sites enjoy long term ground leases to Wells Fargo and FirstMark Credit Union.

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PRICING

ASKING PRICE$6,500,000

IN-PLACE NOI$495,205

CAP RATE7.62%

SITE DESCRIPTION

ADDRESS 6915-6927 S. Zarzamora San Antonio, Texas 78244

YEAR BUILT 2007-2008

GLA 20,130 SF + Ground Lease Pads

OCCUPANCY 94.93%

KEY TENANTS U.S. Government, Gabriel’s, Wells Fargo, FirstMark Credit Union

LAND AREA 1.959 acres (shopping center) 0.979 acres (Wells Fargo pad) 1.018 acres (FirstMark pad) 3.956 Total Acres

PARKING SPACES 101 parking spaces (5.02/1,000 SF)

TRAFFIC COUNTS S. Zarzamora north of SW Military 11,219 CPD SW Military west of S. Zarzamora 36,920 CPD

DEMOGRAPHIC SNAPSHOT 1 Mile 3 Miles 5 Miles

2019 Estimated Population 13,098 119,255 268,421

2019 Estimated Households 3,848 35,416 80,271

Daytime Employees 10,029 30,648 76,065

Average Household Income $46,649 $48,961 $48,914


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SOUTH PARK MALL

DOWNTOWN SAN ANTONIO

25,025 CPD

36,920 CPD

116,409 CPD


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25,025 CPD36,920 CPD

116,409 CPD 87,092 CPD


SOUTH PARK MALL


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36,920 CPD

25,025 CPD


South San AntonioHigh School

Southwest GeneralHospital


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FINANCIAL SUMMARY*

PRICING

GLA PERCENT LEASED IN-PLACE NOI

20,130 SF + Ground Lease Pads 94.93% $495,205

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ASKING PRICE CAP RATE

$6,500,000 7.62%

*Contact broker or execute CA to access OM that contains additional financial detail


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SAN ANTONIO MARKET OVERVIEW

San Antonio is the nation’s 7th largest city and the 24th largest metropolitan service area (MSA) in the United States. The San Anto-nio-New Braunsfels MSA (referred to as Great-er San Antonio) encompasses eight counties and is situated in South-Central Texas along the I-35 corridor with a population of nearly 2.3 million people; 200 miles west of Houston, 280 miles southwest of Dallas and 84 miles south of Austin

The MSA is centrally located between the East and West Coasts, with close proximity to Mex-ico. Due to its central location and positioning along Interstate 35, more than half of the to-tal goods flowing between the U.S. and Mex-ico travel through San Antonio before reach-ing their final destination. San Antonio is also home to a number of national landmarks and famous attractions, making it Texas’ most vis-ited city with about 20 million visitors annually.

San Antonio benefits greatly from the city’s close proximity to Mexico and the cost advan-tages of living in this unique city. The economy of San Antonio is a healthy mix of financial ser-vices, government services, manufacturing, education and health care, biosciences, com-munications, oil & gas and tourism industries. San Antonio is home to five Fortune 500 com-panies including Valero Energy, Tesoro, USAA, NuStar Energy and Clear Channel Communica-tions. In addition, other major companies call San Antonio home for their corporate head-quarters, including H-E-B and Rackspace.

According to the Council for Community and Economic Research, the cost of living is near-ly 12 percent below the U.S. average, allowing residents and companies alike to enjoy afford-able living in a cultural and business-savvy environment. Home prices in San Antonio are more than 35 percent below the U.S. median

and are less than half the cost of comparable housing in some cities in California and the East Coast.

In recent years, San Antonio has been among the top of a number of economic indicator rankings including Milken Institute’s list of top performing cities (#1 in 2011), Brookings Institution’s top-economic performer list and Forbes list of America’s Fastest Recovering Cities (#2 in 2009). The Eagle Ford Shale play that is currently taking place in South Tex-as has made significant contributions to the city’s recent success. The Eagle Ford Shale (EFS) is quite possibly the largest single eco-nomic development in the history of the state of Texas and ranks as the largest oil & gas development in the world based on capital invested. The EFS is a gas and oil producing shale rock formation in south Texas that runs from the US-Mexico border north of Lare-


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do in a narrow band extending northeast for several hundred miles to just north of Hous-ton. The EFS takes its name from the town of Eagle Ford, Texas where the shale outcrops at the surface in clay form. Approximately $30 billion was spent developing the play in 2013 and had more than a $60 billion dollar impact on the South Texas economy in 2012; over 116,000 Eagle Ford jobs were supported

in the 20 county area impacted by the play. Since the beginning of 2010 over 7% of the state’s employment gains are attributed to the EFS. It is currently the most active shale play in the world with over 200 rigs running. From record drilling levels to wells producing over 4,000 barrels per day of oil, the play is redefining South Texas as an oil industry hot-bed and bringing new wealth to the region.

CORPORATE HEADQUARTERS IN SAN ANTONIO

COMPANY BUSINESS EMPLOYED IN SAN ANTONIO

H-E-B Super Market Chain 20,000USAA Financial Services and Insurance 17,000Bill Miller Bar-B-Q Fast Food Chain 4,190Cullen / Frost Bankers Financial Services 3,982Valero Energy Oil Refinery & Gasoline Mktg. 3,777Rackspace IT Managed Hosting Solutions 3,300Southwest Research Institute Applied Research 3,046Toyota Motor Manufacturing Auto Manufacturing 2,900Clear Channel Communications, Inc. TV & Radio Stations, Outdoor Ads 2,800Kinetic Concepts, Inc. Medical Supplies 2,000Harland Clarke Check Printing 1,500Tesoro Oil Refiner & Petroleum Products 800NuStar Energy Energy 550

Source: The San Antonio Business Journal and by contact with company representatives. Updated August 2013.

MAJOR REGIONAL EMPLOYERS IN SAN ANTONIO

COMPANY BUSINESS EMPLOYED IN SAN ANTONIO

Lackland Air Force Base Military 37,097Fort Sam Houston Military 32,000H-E-B Super Market Chain 20,000USAA Financial Services and Insurance 17,000Northside Independent School District School District 12,751City of San Antonio City Government 11,731Randolph Air Force Base Military 11,068North East Independent School District School District 10,522Methodist Healthcare System Health Care Services 8,000San Antonio Independent School District School District 7,374

Source: The 2013 Book of Lists, The San Antonio Business Journal

FORTUNE 500 COMPANIES HEADQUARTERED IN SAN ANTONIO

COMPANY RANK

Valero Energy 9 Tesoro 95 USAA 139 NuStar Energy 389 Clear Channel Communications, Inc. 407

Source: Fortune Magazine


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FULL PROFILE2000-2010 Census, 2019 Estimates with 2024 ProjectionsCalculated using Weighted Block Centroid from Block Groups

Lat/Lon: 29.3587/-98.5354RF1

Military Market1 mi radius 3 mi radius 5 mi radius

6915 S Zarzamora St., San Antonio, TX 78224

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2019 Estimated Population 0 T 13,098 119,255 268,4212024 Projected Population 0 T 14,299 129,836 292,5922010 Census Population 0 T 12,331 108,772 238,7632000 Census Population 0 T 12,734 110,931 241,194Projected Annual Growth 2019 to 2024 - 1.8% 1.8% 1.8%Historical Annual Growth 2000 to 2019 - 0.2% 0.4% 0.6%

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2019 Estimated Households 0 T 3,848 35,416 80,2712024 Projected Households 0 T 4,080 37,448 85,0392010 Census Households 0 T 3,809 34,058 74,7722000 Census Households 0 T 3,731 33,210 71,887Projected Annual Growth 2019 to 2024 - 1.2% 1.1% 1.2%Historical Annual Growth 2000 to 2019 - 0.2% 0.3% 0.6%

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2019 Est. Population Under 10 Years - 14.2% 14.0% 14.8%2019 Est. Population 10 to 19 Years - 14.9% 15.0% 15.2%2019 Est. Population 20 to 29 Years - 13.8% 13.7% 14.5%2019 Est. Population 30 to 44 Years - 18.5% 19.1% 18.9%2019 Est. Population 45 to 59 Years - 17.2% 17.8% 17.5%2019 Est. Population 60 to 74 Years - 14.5% 13.9% 13.0%2019 Est. Population 75 Years or Over - 7.0% 6.4% 6.1%2019 Est. Median Age 34.9 34.8 33.5

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2019 Est. Male Population - 48.4% 49.4% 49.5%2019 Est. Female Population - 51.6% 50.6% 50.5%

2019 Est. Never Married - 37.2% 38.5% 39.9%2019 Est. Now Married - 33.7% 33.7% 31.9%2019 Est. Separated or Divorced - 22.3% 20.9% 21.4%2019 Est. Widowed - 6.8% 6.8% 6.7%

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2019 Est. HH Income $200,000 or More - 0.6% 0.9% 1.1%2019 Est. HH Income $150,000 to $199,999 - 0.9% 1.6% 1.9%2019 Est. HH Income $100,000 to $149,999 - 7.5% 7.1% 6.7%2019 Est. HH Income $75,000 to $99,999 - 8.7% 10.6% 9.8%2019 Est. HH Income $50,000 to $74,999 - 19.2% 20.3% 18.7%2019 Est. HH Income $35,000 to $49,999 - 18.6% 17.8% 16.8%2019 Est. HH Income $25,000 to $34,999 - 9.9% 12.4% 12.3%2019 Est. HH Income $15,000 to $24,999 - 15.4% 14.6% 15.3%2019 Est. HH Income Under $15,000 - 19.2% 14.9% 17.4%2019 Est. Average Household Income $0 T $46,649 $48,961 $48,9142019 Est. Median Household Income $0 T $40,308 $42,594 $40,4912019 Est. Per Capita Income $0 T $13,770 $14,596 $14,814

2019 Est. Total Businesses 0 T 827 2,940 6,6562019 Est. Total Employees 0 T 10,029 30,648 76,065

©2019, Sites USA, Chandler, Arizona, 480-491-1112 page 1 of 3 Demographic Source: Applied Geographic Solutions 4/2019, TIGER Geography

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DEMOGRAPHIC PROFILE


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AGENCY DISCLOSURE

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 rep-resents):• 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 agree-ment. A buyer’s agent must perform the broker’s min-imum 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 the 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 trans-action. 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 differ-

ent 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:

› that the owner will accept a price less than the written asking price;

› that the buyer/tenant will pay a price greater than the price submitted in a written offer; and

› any confidential information or any other information that a party specifically instructs the broker in writ-ing 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 agree-ment 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 no-tice is being provided for information purposes. It does not create an obligation for you to use the broker’s ser-vices. Please acknowledge receipt of this notice below and retain a copy for your records.

Licensed Broker/Broker Firm Name or Primary Assumed Business Name

License Number Email PhoneREATA Real Estate Services, LP 9002891 [email protected] 210.930.4111

Designated Broker of Firm License Number Email PhoneThomas C. Tyng, Jr. 0406718 [email protected] 210.930.4111

Buyer/Tenant/Seller/Landlord Initials Date

Sales Agent License Number Email PhoneKevin Catalani 590070 [email protected] 210.930.4111

Sales Agent License Number Email Phone

Sales Agent License Number Email Phone

REGULATED BY THE TEXAS REAL ESTATE COMMISSION. INFORMATION AVAILABLE AT WWW.TREC.TEXAS.GOV IABS 1-0 02/16/16

OUR MISSION is to provide excellent real estate services to both external and internal customers while building a lasting

Company committed to profitability and opportunity.

We strive for the highest standards of service, integrity and accountability to our EMPLOYEES, CLIENTS and PARTNERS.

Documents

MILITARY MARKET PLAZA...Feb 16, 2016 · REATA REAL ESTATE INVESTMENT SALES 1100 NE Loop 410, Suite 400 San Antonio, TX 78209 TEL 210.930.4111 ... PARKING SPACES 101 parking spaces