MEMORIAL DRIVE 15455 MEMORIAL DRIVE - LoopNet
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Strip Retail Portfolio
&
14741 MEMORIAL DRIVE
15455 MEMORIAL DRIVE
HOUSTON, TEXAS
Holliday GP Corp. ("HFF"), a Texas licensed real estate broker.
THE PROPERTIES ARE AVAILABLE FOR PURCHASE INDIVIDUALLY OR AS A PORTFOLIO.
HIG HW AY 6
BP NORTH AMERICA HQ IH-10
| K AT
Y FR
EEW
REPUBLIC SQUARE AY
MEMORIAL THICKETT FUTURE 35-ACRE MULTI-TENANT, OXCCIDENTAL PETROLEUM
$500K- $800K HOME VALUE WEST MEMORIAL MIXED-USE DEVELOPMENT GLOBAL HQ
PLACE I
SEIMENS ENERGY CENTER
15455 MEMORIAL DRIVE CONOCO PHILLIPS GLOBAL HQ)
KBR, INC. ELDRIDGE PLACE
7SEVENTY
SYSCO GLOBAL HQ 320 UNITS
TRANSOCEAN US HQ
THORNWOOD NEIGHBORHOOD
$350K - $900K HOME VALUE
AURA MEMORIAL
288 UNITS
SHEFFIELD SQUARE
14741 MEMORIAL DRIVE
DOMAIN MEMORIAL
313 UNITS
E
RIV
LD
RIA
MO
ME
MEMORIAL ASHFORD
TOWNHOMES
2
15455 MEMORIAL DRIVE & 14741 MEMORIAL DRIVE
INVESTMENT SUMMARY
P R O P E R T Y OV E R V I E W
LOCATION: 14741-14785 Memorial Dr., Houston, TX 77079
15455 Memorial Dr., Houston, TX 77079
GROSS LEASABLE AREA 46,014 SF
LAND AREA 3.63 acres
OCCUPANCY 84.50%
PARKING 240 spaces
F I N A N C I A L OV E R V I E W
WTD. AVERAGE REMAINING LEASE TERM: 3.1 Years
5-YEAR CAGR: 10.1%
10-YEAR CAGR: 6.1%
PERCENT BELOW MARKET: 17.8%
WITHIN 5 YEARS OF OPERATION: 64.2%
L A R G E S T T E N A N T S ( TO P 1 0 )
TENANT PROPERTY NRA % OF PROPERTY
LA HACIENDA 14741 5,551 12.1%
CAFE BENEDICTE 15455 4,784 10.4%
FROST 15455 3,000 6.5%
NAPOLI PIZZA & BURGERS 14741 2,450 5.3%
PHO CRAB 14741 2,250 4.9%
EDGE DENTAL 15455 2,084 4.5%
VELLISIMO SALON & SPA 14741 1,800 3.9%
MEMORIAL POST CENTER 14741 1,800 3.9%
JACQUELINES' DAY SPA 15455 1,563 3.4%
9 ROUND 15455 1,484 3.2%
PORTFOLIO TENANT MIX PORTFOLIO NOI GROW TH
5% 15455 Memorial 14741 Memorial
Mail
2%
Gym
7%
Laundry
10%
Personal Finance
52%
Food /
Beverage
In-Place 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
23%
Health /
Beauty 10.1% 5-Year CAGR 6.1% 10-Year CAGR
3
15455 MEMORIAL DRIVE & 14741 MEMORIAL DRIVE
INVESTMENT SUMMARY
15455 MEMORIAL DRIVE 14751 MEMORIAL DRIVE PORTFOLIO
• SIGNIFICANT UPSIDE POTENTIAL (14741 MEMORIAL DRIVE) – Currently 77.3% leased,
14741 Memorial Drive offers investors the opportunity to substantially increase NOI via the lease-up of
LOCATION 15455 Memorial Dr., 14741-14785 Memorial Dr., 7,117 SF of vacancy as well as bringing rents to market rates upon lease expiration of current tenants.
Houston, TX 77079 Houston, TX
YEAR BUILT/ RENOVATED 2004/ 2018 1967-1970/ 2018 • UST HAVE RETAIL CORRIDOR (14741 MEMORIAL DRIVE) – 14741 Memorial Drive is
M
GROSS LEASABLE AREA 14,656 SF 31,358 SF 46,014 SF surrounded by destination retailers such as HEB Curbside Pickup & Home Delivery, Randall’s, Kroger,
LAND AREA 1.14 acres 2.49 acres 3.63 acres
and Spec’s Liquor
OCCUPANCY 100% 77.3% 84.50% •
S TABLE IN-PLACE RETURNS (15455 MEMORIAL DRIVE) – 100% occupied with 5 years of
PARKING 78 spaces (5.3/1000 SF) 162 Spaces (5.2/1000 SF) 240 spaces weighted average remaining lease term (WALT), 15455 Memorial Drive produces strong cash-on-cash
TRAFFIC COUNT (VPD) Memorial: 22,730 returns due to stable in place cash flow with minimal leasing capital requirements.
Memorial: 20,180
Dairy Ashford: 32,400
WTD. AVERAGE
5.0 Years 2.6 Years 3.1 Years •
R ECENTLY RENOVATED (15455 MEMORIAL DRIVE) – The property experienced a full
REMAINING LEASE TERM
renovation after taking on water in the aftermath of Hurricane Harvey due to the City of Houston’s
5-YEARS CAGR 3.6% 14.1% 10.1% decision to release water from the reservoirs just west of the property. The building did not flood during
10-YEAR CAGR 3.4% 7.8% 6.1% the actual storm and all tenants returned after remediation.
PERCENT BELOW MARKET 14.0% 20.5% 17.8%
ROLLOVER WITHIN •
P ROMINENT WEST HOUSTON LOCATION – Whether purchased individually or as a portfolio, the
59.6% 66.3% 64.2%
5 YEARS OF OPERATION Properties provide investors the ability to acquire assets surrounded by institutional owners and affluent
executive housing.
•
B ELOW MARKET RENTS – In place rents across both properties are an estimated 17.8% below
14 7 41 M EM O R I A L D R I V E market, providing the opportunity to increase yield as tenants roll over
• HENOMENAL RETAIL CORRIDOR FUNDAMENTALS – Containing nearly 1 million square feet
P
of rentable area, the Memorial Drive retail corridor is 96.9% occupied, which slightly outperforms the
Houston retail market as a whole.
• IGH PERFORMING HOUSTON RETAIL MARKET – Currently 94.6% occupied, the Houston
H
Retail Market is the second most occupied product type in the MSA, trailing Industrial by a mere 0.10%.
•
P ROXIMITY TO GLOBAL ENTERPRISE – The Portfolio is surrounded by the international and
domestic headquarters of the world’s largest energy companies such as Conoco Philips, Occidental
Petroleum, BP North America, and Shell Oil Company as well as other Fortune 500 office users such as
Sysco Foods and Gulf States Toyota.
• FFLUENT, WELL-EDUCATED RESIDENTIAL POPULATION – Exceptional average household
A
incomes upwards of $118,000 due to a highly educated population in which over 33% of residents
15 4 55 M EM O R I A L D R I V E possess a bachelor’s degree or higher (11% higher than the national average)
• IGH SURROUNDING POPULATION GROWTH – The Memorial Retail Corridor has exhibited
H
a consistently high rate of growth in recent years as multi-family developments have become more
prevalent, resulting in 27.1% household growth since 2000 as well as a 5-year growth forecast of 8%. In
2018 alone, the submarket added 1,190 units.
• 1 IN NATIONWIDE JOB GROWTH – In the 12 months trailing November 2018 the Houston MSA
#
gained 101,800 jobs, more than any other market in the country
• IGHEST PERFORMING RETAIL MARKET IN THE COUNTRY – #1 in Retail Investment Returns
H
on 7-year and 10-Year Hold Basis according to The National Council of Real Estate Investment (NCREIF).
Houston retail fundamentals remain strong driven by nation leading employment and population growth.
4
15455 MEMORIAL DRIVE & 14741 MEMORIAL DRIVE
LOCATION OVERVIEW
A B U N DA N T I N V E S T M E N T A N D F U T U R E M O M E N T U M
Explosive growth in West Houston experienced over the last decade, largely fueled by the westward migration of Houston’s middle class, has incentivized several of Houston’s most
prominent employers to relocate their headquarters to the Energy Corridor. Today the Energy Corridor is a premier investment locale with ample institutional investment, more than any
other suburban area outside Houston’s central core. The demographics and amenities are comparable to core locations, as are the limited amount of land for new development and
strong momentum in the commercial markets.
ADDICKS RESERVOIR
2.4 to 2.5 Million SF in New Office Leases OCCIDENTAL PETROLEUM CORP GLOBAL HQ
in the Energy Corridor in 2018 1
TERRY HERSHEY 1.4 Million SF (New Lease)
15455 MEMORIAL DRIVE PARK
3 5
2 4
7
MCDERMOTT 6
350K SF
8 9 (New Lease)
10 CONOCOPHOILLIPS
12
11 GLOBAL HQ
13
14
N DAIRY ASHFORD RD
BP NORTH
AMERICA HQ 15 M
GEORGE BUSH PARK
& BARKER RESERVOIR 100K SF
S&B ENGINEERS
EM
(New Lease)
O
75K-100K SF
RI A
LD
(New Lease) R
DR
Institutional Owners
GE
16 14741 MEMORIAL DRIVE
RID
1 VEREIT 18 Piedmont
ELD
2 Lexington 19 Franklin Street
3 American Realty Capital 20 Gramercy
4 USAA 21 AMLI
17 18 SCHLUMBERGER
5 Spear Street 22 Azrieli 235K SF
(Renewal and Expansion)
6 American Realty Advisors 23 Griffith Properties 19 20
7 Franklin Street 24 Ohio PERS BUFFALO BAYOU
21 22
8 Invesco 25 Blackrock
23 Lifestyle Amenities Key
9 Invesco 26 Mill Creek 24 Major Employers
10 PIMCO 27 White Oak
28 Addicks Park & Ride
25 26 27 29
11 Interventure 28 Bentall Kennedy
30 TRANSOCEAN U.S. HQ Grocery Options
12 Principal 29 Monogram 300-350K SF Schools
31 (New Lease)
32 Parks And Undevelopable Land
13 AEW 30 Piedmont
14 Capri Capital 31 Monogram Fitness (Top Golf And La Fitness Gym)
33
SYSCO GLOBAL Housing Prices Average $500K+
15 TIER REIT 32 CIGNA
HQ Housing Prices Average $400Ks
16 AEW 33 TIAA CREF 34 Housing Prices Average $300Ks
17 Blackstone 34 GID
5
15455 MEMORIAL DRIVE & 14741 MEMORIAL DRIVE
LOCATION OVERVIEW
Grand Pkw y 69 LIBERTY
Lake COUNTY
The Woodlands Houston
State Park
MONTGOMERY
y
Frw
ExxonMobil COUNTY
Corporate Headquarters
tex
Eas
HARRIS
COUNTY Pr
op
os
George Bush ed
Intercontinental
Airport
Greenspoint Gran
d
Pkw
Sam Houston Pkwy y
Lake
Houston
Agnes
69 Moffit Park
Greenhouse Rd
6
Hard
BELTWAY
8
Eldridge Pkwy
Gessner Dr
Saums Rd
y Toll
No Sheldon
rth
we Cullen Park Reservoir
No
Road
st
Frw
rth
TO L
L
Barker Cypress Rd
y
15455 MEMORIAL DRIVE
Fr
Addicks Reservior
y
wy
Hw
15455 MEMORIAL DRIVE mo
nt
14741 MEMORIAL DRIVE Be
au
Park Ten
Frwy
n East
14741 MEMORIAL DRIVE
North
Loop Baytow
Energy Corridor Memorial Herman Memorial City
Memorial City Shopping Center
Katy Frwy Memorial Oaks Hospital
Wilcrest Dr
r Cemetary
lD
o ria Town &
Kingsland Blvd M em
Nottingham Country Village
Bayou Park
Memorial Dr
Downtown
East Loop
George Bush
Westchase Barker Reservior Bu ffalo
Westheimer Rd San
Park
The Galleria Jacinto
Dairy Ashford Rd
lway Bay Lakeside
Westpark Tol
Eldridge Pkwy
Texas
West Loop
Pasadena Frwy Country Club
Enclave Pkwy
y Terry Hershy
w
Fr
Medical
Park
Kir
t
es
kw
Briar Forest Dr
Centerth
ood
hw
ut
Rd
Loop
So Sou
Sam Houston Tollway
Barbour’s Cut
Terminal Briar Forest Dr
Gessner Rd
George Bush Park
FORT BEND 69 William 6
Galveston
Forest Park
Westheimer
COUNTY
wy
P. Hobby Cemetary
Airport Bay Westheimer Rd
Pk
Sam Houston Tollway Bayport
nd
Terminal
Be
West Oaks
Mall Richmond Ave Westchase
Armand West Houston Rich
Medical
Gu
South Frwy
Bayou Center
lf
Pkwy Park
Fr
eimer
Fort
Westh
Old Westheimer Rd
wy
Dr
Westpark
Clear Royal Oaks
Lake Country Club
Rd Westpark Dr
er
im
the
es
W
Texas par
Golf Academy
way
Westpark Toll Sharps
Wilcrest Dr
T O L L R O AD
S Kirkwood Rd
BELTWAY
Golf C
8
Eldridge Pkwy
Smithers
Lake Bellaire Blvd
Old Addicks - Howell Rd
Howell-Sugarland Rd
S Gessner Rd
S Barker Cypress Rd
GALVESTON
Dairy Ashford Rd
Harlem Rd
TO L
COUNTY
L
Proposed Grand Pkwy
BRAZORIA Beechnut St
COUNTY Beechnut St
6
15455 MEMORIAL DRIVE & 14741 MEMORIAL DRIVE
15455 MEMORIAL DRIVE SITE PLAN
B P W AY
W
ES
TL
AK
E
PA
RK
VPD
180
BO
20,
E |
UL
RIV
L D
RIA
EV
MO
ME
AR
D
1,484 SF
Jacqueline’s
Day Spa 4,784 SF detention
1,563 SF pond
2,084 SF
Dry
Insurance Cleaners
Agency 906 SF
835 SF
3,000 SF
WE
ST
LA
KE
PA
RK
BO
UL
EV
AR
D
7
15455 MEMORIAL DRIVE & 14741 MEMORIAL DRIVE
14741 MEMORIAL DRIVE SITE PLAN
MEMO R I AL D R I VE | 2 2 , 7 3 0 V P D
TH IC KE T
LA N E
Carmelo’s Pho Crab
Restaurant 2,250 SF
Memorial Vellisimo Napoli’s
Vacant Postal Vacant Salon Vacant Vacant Pizza
2,400 SF Center 1,500 SF and Spa 1,600 SF 1,617 SF 2,450 SF
1,800 SF 1,800 SF 5,551 SF
NO
TT
IN
GH
AM
OA
KS
TR
AI
L
US Saeed’s The Bao Bao V Lash Couture The K&M Lice
Star Mediter. Dinner Banh Mi Studio Nails Water Alternations Clinics
Cleaners Grill Dude 650 SF 635 SF 875 SF Tree 1,000 SF of
1,000 SF 1,200 SF 1,455 SF 750 SF America
1,000 SF
West Mrs.
Memorial Donuts
Barber 1,025 SF
Shop
800 SF
8
14741 MEMORIAL DRIVE
SYSCO
GLOBAL HQ
OCCIDENTAL TRANSOCEAN
PETROLEUM US HQ
GLOBAL HQ THORNWOOD NEIGHBORHOOD
$350K - $900K HOME VALUE
ELDRIDGE PLACE KBR, INC.
AY
ENERGY CENTER
FREEW
CONNOCO PHILLIPS GLOBAL HQ
Y
| K AT
IH-10
PARKSIDE AT MEMORIAL
MEMORIAL THICKETT
VILLAGE ON MEMORIAL WEST MEMORIAL $500K- $800K HOME VALUE
PLACE I
SEIMENS
M
EM
OR
IA
L
DR
15455 MEMORIAL DRIVE
IV
E
FUTURE 35-ACRE MULTI-TENANT,
MIXED-USE DEVELOPMENT
BP NORTH AMERICA HQ
9
15455 MEMORIAL DRIVE & 14741 MEMORIAL DRIVE
TENANT PROFILES
FROST BANK CAFÉ BENEDICTE
Square Feet: 3,000 Square Feet: 4,784
Website: www.frostbank.com Website: www.cafebenedicte.com
Public/ Private: Public (NYSE: CFR) Public/ Private: Private
Tenant Detail: Cullen/Frost Bankers, Inc. (NYSE: CFR) is a financial holding company, Ranked one of the top 100 best brunch restaurants in America in 2017 by Yelp!, Café
headquartered in San Antonio, with $31.2 billion in assets at September 30, 2018. One Benedicte is one of Houston’s most highly regarded restaurants. Serving authentic European
of the 50 largest U.S. banks, Frost provides a wide range of banking, investments and cuisine, the single location bar and restaurant serves brunch Saturday and Sunday as well
insurance services to businesses and individuals across Texas in the Austin, Corpus Christi, as lunch and dinner Monday-Friday.
Dallas, Fort Worth, Houston, Permian Basin, Rio Grande Valley and San Antonio regions via
approximately 126 branch locations. Founded in 1868, Frost has helped clients with their
financial needs for over 150 years.
E D G E D E N TA L
Square Feet: 2,084
Website: www.edgedentalhouston.com
Public/ Private: Private
Edge Dental is owned and operated by Dr. Justin Lai D.D.S who specializes in general
dentistry. Dr. Lai holds multiple degrees including a B.S. in Chemical Engineering for Rice
University and a Doctorate in Dental Surgery (DDS) from the University of Texas Health
Science Center at San Antonio Dental School. Operating out of a single location, Dr. Lai is
wholly devoted to the memorial corridor.
1015455 MEMORIAL DRIVE & 14741 MEMORIAL DRIVE
TENANT PROFILES
L A H AC I E N DA
Square Feet: 5,551
Website: http://www.lahaciendamemorial.com/
Public/ Private: Private
Locally owned and operated since 1973, La Hacienda is an authentic Mexican restaurant
located in the memorial corridor. Serving Tex-Mex classics like such as tortilla soup,
enchiladas and tacos within an old-school restaurant environment, La Hacienda is a long-
time West Houston staple.
ORIGINAL NAPOLI
Square Feet: 2,450
Website: http://originalnapoli.com/index.htm
Public/ Private: Private
Napoli is a Houston based Italian restaurant franchise with 4 locations in and around
Houston. Offering a family friendly environment, Original Napoli serves everything from
Bruschetta to pizza by the slice.
P H O & C R A B R E S TA U R A N T
Square Feet: 2,250
Website: http://www.phoandcrab.com/chefs.html
Public/ Private: Private
While this space is currently operating at Pho & Crab Restaurant, a restaurant serving
traditional Vietnamese cuisine, the lease has recently been assigned to a close relative of
the family who plans to rebrand the space as a new restaurant concept called Viet Urban
Kitchen. The existing business plans to shut down in October 2019 to renovate and re-open
in February 2020. During this period of closure, all base rent will be abated.
1115455 MEMORIAL DRIVE & 14741 MEMORIAL DRIVE
LOCATION OVERVIEW
15455 and 14741 Memorial Drive are advantageously located in West Houston, widely regarded as Houston’s most sought-after residential area outside Houston’s urban core. This area
offers a high quality of life with top-rated schools and convenient accessibility to a wide variety of employment, shopping and dining opportunities. It is also home to some of Houston’s
most affluent residential neighborhoods and the city’s largest parks.
The surrounding area has seen healthy population and commercial growth since 2010, and Houston’s overall “center” has gradually shifted westward as a result. This westward expansion
is projected to continue with corresponding commercial development that will create tens of thousands more jobs, and the region will remain attractive to renters on a long-term basis.
Q UA LI T Y O F L I F E | R E S I D E N T I A L Q UA L I T Y O F L I F E | R E S I D E N T I A L D E M O G R A P H I C S
Local Demographics Snapshot 3-Mile Radius
Nearby Neighborhoods
Total Homes
Neighborhood Total Homes Average Sales Price
Available For Sale
Nottingham 478 17 $788,655
27.1% 8.0% 50.5%
HOUSEHOLD GROW TH HOUSEHOLD GROW TH RENTER OCCUPIED
Nottingham West 348 14 $639,221 (2000 -2018) (2018-2023) HOUSEHOLDS
Nottingham Forest 935 32 $679,852
Westchester 484 16 $512,238
39.3 47.2% 2.3
Thornwood 389 31 $450,850 AVER AGE AGE SINGLE
AVER AGE
HOUSEHOLD SIZE
62.9% 58.1% 29.3
COMMUTE LESS AVER AGE COMMUTE
COLLEGE DEGREE
THAN 30 MINUTES TIME (MINUTES)
AV E R AG E H O U S E H O L D I N C O M E
$140,000
$130,000
$120,000
$110,000
$100,000
$90,000
$118,776 $130,467
$80,000 $110,189
$70,000
$60,000
$50,000
1-Mile Radius 3-Mile Radius 5-Mile Radius
$1.35M home for sale in Nottingham
Houston Average
1215455 MEMORIAL DRIVE & 14741 MEMORIAL DRIVE
LOCATION OVERVIEW
E M P LOY M E N T W I T H I N 1 5 M I N U T E S Q UA LI T Y O F LI F E | S C H O O L S
Local Employment Snapshot 3-Mile Radius Spring Branch ISD Snapshot
45 35,000+ 4,600+
25,762 BUSINESSES 329,770 EMPLOYEES TOTAL SCHOOLS TOTAL STUDENTS TOTAL STAFF
Top 5 Local Industry Anchors
SCHOOL DISTRICT ACCOLADES
5.3% Overall A Ranking
Real Estate
(2018, Niche)
8.2% #12 Best School District
Retail in Houston Area
(2018, Niche)
Kinder Excellence
in Teaching Award
32.0% (2018)
11.1% Health Care
Finance Nottingham Elementary School
& Insurance
Zoned Schools
School Total Students Total Staff
Nottingham Elementary School 532 34
Spring Forest Middle School 850 52
17.5% Stratford High School 2,105 123
Scientific & Technology Services
1315455 MEMORIAL DRIVE & 14741 MEMORIAL DRIVE
LOCATION OVERVIEW
N AT I O N - L E A D I N G H O U S TO N M S A E C O N O M Y
Houston Ranked 3rd Nationally in Job Growth
P O P U L AT I O N G R O W T H ( 2 N D I N T H E N AT I O N ) H O U S TO N ' S S U R G I N G J O B G R O W T H
180,000 140,000
160,000
120,000
140,000
100,000
120,000
100,000 80,000
80,000 60,000
60,000
40,000
40,000
20,000 20,000
0 0
2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019
Projected Projected -20,000 Projected Projected
14INVESTMENT FINANCING
ADVISORY INQUIRIES
RYAN WEST MICHAEL JOHNSON
Senior Managing Director Director
T. (713) 852-3535 T. (713) 852-3474
rwest@hfflp.com mjohnson@hfflp.com
JOHN INDELLI
Director
T. (713) 852-3407
jindelli@hfflp.com
CHARLES STRAUSS
Real Estate Analyst
T. (713) 212-6574
cstrauss@hfflp.com
ETHAN GOLDBERG
Real Estate Analyst
T. (713) 212-6549
egoldberg@hfflp.com
BRYAN STRODE
Research Analyst
T. (713) 212-6551
bstrode@hfflp.com
9 Greenway Plaza, Suite 700
Houston, Texas 77046
T. (713) 852-3500
F. (713) 527-8725 Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 26 offices and are
hfflp.com a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement,
investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.You can also read
