OFFERING MEMORANDUM

South Post Oak Center 11107 S Post Oak Rd, Houston, Texas 77035
 N O N - E N D OR S E M E N T & D I S C L A I M E R N O T I C E

CONFIDENTIALITY&DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person
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THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that we have not
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but we make no representations of warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Seller and/or Buyer must verify the information and bear all risk for any inaccuracies.
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AUSTIN, TEXAS 78711-2188
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NON-ENDORSEMENTNOTICE
Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or
sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee
information about this listing to prospective customers.

SPECIALCOVID-19NOTICE
All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting
from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment
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to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees
and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making.

Activity ID # ZAD0040376

OFFICES THROUGHOUT THE U.S. AND CANADA

marcusmillichap.com
 T able O f C on ten ts

Section 1
Property Information .............................................. 4

Section 2
Financial Analysis .............................................. 8

Section 3
Market Overview .............................................. 14
Section 1

Property 1 Investment
Highlights

Information
2 Offering Summary

3 Tenant Overview
 Walgreens

58,250
VPD SOUTH POST
OAK CENTER
AK
TO
OS
SP
 INVESTMENT HIGHLIGHTS
13,456 Square Foot Shopping Center | 100% Occupied | Large 1.70 Acre Parcel
Frontage on High Traffic South Post Oak Rd. | Traffic Exceeds 58,000 VPD
Superb Demographics | Average Household Income is $109,238 in a 1-Mile Radius
Upside Potential by Converting Gross Leases to NNN
Excellent Location South of Famed Bellaire & Meyerland Neighborhoods and Galleria Area
 Offering Summary

Listing Price Cap Rate Price per SF

$2,530,000 8.05% $188.02

%
GLA Lot Size Occupancy
13,456 SF 1.70 Acres 100%
Section 2

Financial
Analysis
Financial
1 Details
 Financial Details
South Post Oak Center

SQUARE % BLDG LEASE DATES ANNUAL RENT BASE RENT BASE RENT LEASE EXPENSE

SUITE TENANT NAME FEET SHARE COMM. EXP. SQ. FT. PER MONTH PER YEAR TYPE REIMB.

11101 Zumba Workout Center 1,509 11.2% 2/1/18 MTM $13.52 $1,700 $20,400 Gross $480

11103 Hair Evolution 900 6.7% 3/1/14 8/30/24 $21.07 $1,580 $18,960 Gross $360

11105 Space City Marketing 1,200 8.9% 9/1/13 6/30/24 $22.20 $2,220 $26,640 Gross $480

11107-09 Gorditas y Tacos La Bala 2,412 17.9% 7/1/20 9/30/23 $17.91 $3,600 $43,200 NNN $12,600

11111 Unicorp Auto Paint 1,206 9.0% 9/1/13 6/30/25 $21.14 $2,125 $25,500 Gross $600

11115 La Sierra 2,412 17.9% 12/15/20 12/14/23 $16.42 $3,300 $39,600 Gross $1,800

11117 Amusement Room 2,713 20.2% 11/1/19 6/30/25 $23.00 $5,200 $62,400 Gross $1,200

11121 Lounge 904 6.7% 3/1/16 6/30/25 $26.95 $2,030 $24,360 Gross -

- Tejas Pure Water 200 1.5% 9/1/11 8/31/27 $39.60 $660 $7,920 - -

Total 13,456 $19.99 $22,415 $268,980 $17,520

Financial Details
South Post Oak Center
INCOME Year 1 PER SF

Scheduled Base Rental Income 268,980 19.99

Expense Reimbursement Income

CAM 17,520 1.30

Total Reimbursement Income $17,520 25.6% $1.30

Potential Gross Revenue 286,500 21.29

General Vacancy (5.00%) (14,325) (1.06)

Effective Gross Revenue $272,175 $20.23

OPERATING EXPENSES Year 1 PER SF

Utilities 15,998 1.19

Trash Removal 4,874 0.36

CAM 4,545 0.34

Insurance 10,000 0.74

Real Estate Taxes 33,000 2.45

Total Expenses $68,417 $5.08

Expenses as % of EGR 25.1%

Net Operating Income $203,758 $15.14

Financial Details
South Post Oak Center

SUMMARY OPERATING DATA

Price $2,530,000

Down Payment $2,530,000 100%

INCOME Year 1
CAP Rate 8.05%

Price Per SqFt $188.02 Scheduled Base Rental Income $268,980

Gross Leasable Area (GLA) 13,456 SF

Total Reimbursement Income $17,520
Lot Size 1.70 Acres
Potential Gross Revenue $286,500
Year Built/Renovated 1968/2017

Occupancy 100.00% General Vacancy ($14,325)

Effective Gross Revenue $272,175

Less: Operating Expenses ($68,417)

Net Operating Income $203,758

OPERATING EXPENSES Year 1

CAM $25,417

Insurance $10,000

Real Estate Taxes $33,000

Total Expenses $68,417

Expenses/SF $5.08
 SOUTH POST
OAK CENTER

58,250
VPD

SP
O
ST
OA
K
Section 3

Market 1 Market Overview

Overview
2 Demographics

3 TREC IABS
 Market Overview

Houston
As the fifth most populous metro area in the United States, Houston houses
more than 7.1 million people in southeastern Texas. Roughly one-third
of residents live in the city of Houston. The market is composed of nine
counties: Harris, Galveston, Brazoria, Fort Bend, Chambers, Montgomery,
Austin, Liberty and Waller. The Gulf of Mexico, which borders the metro
to the southeast, provides access to markets around the world via the
Port of Houston, making it a prime location for exports. Local industries
have diversified from oil to technology and health care. Many companies
provide goods and services for the large population growth, which has
sprawled, primarily to the north and west.

Metro Highlights

Corporate Growth
Houston is a top destination for corporate relocations, due to
its business-friendly environment. More than 20 Fortune 500
companies are headquartered in the metro.

Higher Education
Over 40 post-secondary educational institutions are in the metro.
Roughly 32 percent of citizens ages 25 and older have a bachelor’s
degree, with 11 percent also holding a graduate or professional
degree.

Low Cost of Living, Doing Business

Houston has a lower cost of living than many major metros, no
state income tax and a median home price below the national
level.
Economy
The economy is diversifying to include biotechnology, distribution, nanotechnology
and logistics. The metro remains the center of energy production.
Local product manufacturing is a large segment of the economy and includes paper,
electrical and electronic machinery, iron, steel and petrochemicals.
Health care is gaining economic prominence. Specialized medical education and
training institutions boost the local economy and supply a growing hospital system.
The Port of Houston is one of the country’s busiest for exports, supplying thousands of
jobs and generating billions of dollars in revenue.

Major Area Employers

Memorial Hermann Health System H-E-B
The Kroger Co. ExxonMobil Corp.
Shell Oil Co. Houston Methodist Hospital
United Airlines Walmart
CHI St. Luke’s Health Schlumberger

Share of 2021 Total Employment

7% MANUFACTURING 16% PROFESSIONAL AND
BUSINESS SERVICES
13% GOVERNMENT

LEISURE AND
11% HOSPITALITY 5% FINANCIAL ACTIVITIES 21% TRADE, TRANSPORTATION
AND UTILITIES

EDUCATION AND
7% CONSTRUCTION 13% HEALTH SERVICES 4% OTHER SERVICES
 Market
Overview

Sports
Demographics
The Houston metro is expected to add 720,700 people through 2025, translating to the
formation of roughly 263,600 households, generating demand for housing.
The homeownership rate of 61 percent slightly trails the national rate of 64 percent. The
median home price of roughly $282,000 is $40,000 below the U.S. average.
The metro’s median household income exceeds $68,000, surpassing the national rate by
roughly $5,000.

2021 Population by Age

Education

7% 22% 6% 29% 24% 12%

0-4 Years 5-19 Years 20-24 Years 25-44 Years 45-65 Years 65+ Years

2021
POPULATION
2021
HOUSEHOLDS
2021
MEDIAN AGE
2021 MEDIAN
HOUSEHOLD INCOME Arts & Entertainment
7.2M 2.5M 38.4M $68,800
GROWTH GROWTH US MEDIAN US MEDIAN
2021-2026 2021-2026
10% 10.4% 38.4 $65,700

Quality Of Life
The metro’s favorable location and climate translates to an abundance of outdoor activities. More than a dozen state parks and recreation areas lie within a short
drive of Houston, as well as more than 500 local parks and open spaces, various cultural venues and museums. Johnson Space Center is a popular tourist and
educational destination. The metro is also known internationally for its medical community and is home to Texas Medical Center, the largest of its kind in the
world. Houston hosts four professional sports teams: the Houston Texans, the Houston Astros, the Houston Rockets and the Houston Dynamo.
*Forecast
Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau
Demographics
POPULATION 1 Mile 3 Miles 5 Miles
South Post Oak Center
2026 Projection
Total Population 10,574 148,527 438,653
2021 Estimate HOUSEHOLDS BY EXPENDITURE 1 Mile 3 Miles 5 Miles
Total Population 10,548 144,034 424,051 Total Average Household Retail Expenditure $120,474 $109,941 $104,854
2010 Census Consumer Expenditure Top 10 Categories
Total Population 10,341 131,753 388,412 Housing $18,964 $17,660 $17,036
2000 Census Transportation $13,077 $11,856 $11,321
Total Population 10,199 124,726 363,443 Food $7,176 $6,487 $6,200
Daytime Population Personal Insurance and Pensions $5,843 $5,509 $5,409
2021 Estimate 11,768 127,841 427,770 Healthcare $5,783 $5,171 $4,727
HOUSEHOLDS 1 Mile 3 Miles 5 Miles Entertainment $2,576 $2,310 $2,225
2026 Projection Apparel $2,195 $1,864 $1,646
Total Households 4,398 55,878 163,854 Cash Contributions $1,282 $1,068 $939
2021 Estimate Gifts $1,042 $934 $863
Total Households 4,369 53,822 157,413 Education $995 $927 $925
Average (Mean) Household Size 2.5 2.7 2.7 POPULATION PROFILE 1 Mile 3 Miles 5 Miles
2010 Census Population By Age
Total Households 4,260 48,966 142,593 2021 Estimate Total Population 10,548 144,034 424,051
2000 Census Under 20 26.8% 28.0% 27.9%
Total Households 4,184 47,142 135,695 20 to 34 Years 17.5% 21.2% 24.1%
Occupied Units 35 to 39 Years 7.1% 7.0% 7.8%
2026 Projection 4,692 62,007 182,504 40 to 49 Years 13.8% 12.8% 12.9%
2021 Estimate 4,657 59,510 174,858 50 to 64 Years 18.6% 17.6% 16.0%
HOUSEHOLDS BY INCOME 1 Mile 3 Miles 5 Miles Age 65+ 16.1% 13.5% 11.2%
2021 Estimate Median Age 39.0 35.6 33.8
$150,000 or More 21.5% 17.6% 14.8% Population 25+ by Education Level
$100,000-$149,999 14.4% 10.7% 10.1% 2021 Estimate Population Age 25+ 7,241 94,786 277,522
$75,000-$99,999 12.6% 10.3% 10.1% Elementary (0-8) 11.2% 10.3% 12.1%
$50,000-$74,999 14.9% 17.7% 18.0% Some High School (9-11) 4.7% 7.5% 7.5%
$35,000-$49,999 11.1% 12.9% 13.5% High School Graduate (12) 15.0% 20.2% 20.5%
Under $35,000 25.4% 30.7% 33.4% Some College (13-15) 16.6% 17.6% 16.9%
Average Household Income $109,238 $99,157 $93,120 Associate Degree Only 4.0% 5.5% 5.3%
Median Household Income $72,060 $57,336 $53,511 Bachelor’s Degree Only 24.7% 20.8% 19.9%
Per Capita Income $45,398 $37,096 $34,674 Graduate Degree 23.7% 18.1% 17.9%
Demographics
South Post Oak Center

POPULATION EMPLOYMENT
In 2022, the population in your selected geography is 424,051. The population has In 2022, 219,386 people in your selected area were employed. The 2000
changed by 16.7 percent since 2000. It is estimated that the population in your Census revealed that 66.4 percent of employees are in white-collar occupations
area will be 438,653 five years from now, which represents a change of 3.4 percent in this geography, and 33.6 percent are in blue-collar occupations. In 2022,
from the current year. The current population is 48.9 percent male and 51.1 percent unemployment in this area was 5.0 percent. In 2000, the average time traveled to
female. The median age of the population in your area is 33.8, compared with the work was 24.4 minutes.
U.S. average, which is 38.6. The population density in your area is 5,403 people
per square mile.

HOUSEHOLDS HOUSING
There are currently 157,413 households in your selected geography. The number The median housing value in your area was $205,419 in 2022, compared with the
of households has changed by 16.0 percent since 2000. It is estimated that the U.S. median of $250,735. In 2000, there were 62,399 owner-occupied housing
number of households in your area will be 163,854 five years from now, which units and 73,296 renter-occupied housing units in your area. The median rent at
represents a change of 4.1 percent from the current year. The average household the time was $509.
size in your area is 2.6 people.

INCOME EDUCATION
In 2022, the median household income for your selected geography The selected area in 2022 had a lower level of educational attainment when
is $53,511, compared with the U.S. average, which is currently compared with the U.S averages. 17.9 percent of the selected area’s residents
$66,422.The median household income for your area has changed by 36.2 percent had earned a graduate degree compared with the national average of only 12.3
since 2000. It is estimated that the median household income in your area will be percent, and 19.9 percent completed a bachelor’s degree, compared with the
$59,276 five years from now, which represents a change of 10.8 percent from the national average of 19.7 percent.
current year. The number of area residents with an associate degree was lower than the nation’s
The current year per capita income in your area is $34,674, compared with the U.S. at 5.3 percent vs. 8.4 percent, respectively.
average, which is $37,200. The current year’s average household income in your The area had fewer high-school graduates, 20.5 percent vs. 27.1 percent for the
area is $93,120, compared with the U.S. average, which is $96,357. nation. The percentage of residents who completed some college is also lower
than the average for the nation, at 16.9 percent in the selected area compared with
the 20.4 percent in the U.S.
Demographics
South Post Oak Center

Major Employers Employees

1 Sleepys LLC 3,188

2 Tcghha LLC 2,420

3 KS Management Services LLC 2,400

4 Lgd Management LP 2,125

5 Soji Services Inc-Metroclean Coml Bldg Svcs 1,400

6 Methodist Hospital 1,332

7 Chca Womans Hospital LP-Womans Hospital of Texas The 1,250

8 University of Txas M D Andrson-Capital Planning and MGT 1,200

9 Houston Lvstk Show Rdeo Edctl 1,200

10 University of Txas M D Andrson-University Texas Cancer Center 1,080

11 Alcon Vision LLC-Alcon Surgical 1,000

12 Universlpgsus Intl Hldings Inc 980

13 Alsco Inc-Admiral Linen and Uniform 900

14 Shell Info Tech Intl Inc-S I T I 810

15 Harris Ctr For Mental Hlth Idd 759

16 Community Health Choice Inc 700

17 Community Hlth Chice Texas Inc 696

18 Beyond Finance LLC-Debt Relief Services 626

19 Weiser Security Services Inc 625

20 Weldforce Group LLC 600

21 Hubbell & Hudson MGT LLC 568

22 Mrr Management LLC 550

23 Driftwood Hospitality MGT LLC-Park Plaza Reliant Center 523

24 Memorial Hermann Hospital Sys 518

25 Houston Community College Inc 515

Demographics
South Post Oak Center
 11-2-2015
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 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 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:
o that the owner will accept a price less than the written asking price;
o that the buyer/tenant will pay a price greater than the price submitted in a written offer; and
o 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.

Marcus & Millichap 9002994 tim.speck@marcusmillichap.com 972-755-5200

Licensed Broker /Broker Firm Name or Primary Assumed License No. Email Phone
Business Name

Tim A. Speck 432723 tim.speck@marcusmillichap.com 972-755-5200

Designated Broker of Firm License No. Email Phone

Ford Noe 709695 ford.noe@marcusmillichap.com 713-452-4200

Licensed Supervisor of Sales Agent/Associate License No. Email Phone

Information available at www.trec.texas.gov

Regulated by the Texas Real Estate Commission
IABS 1-0