VELVET TACO GALLERIA TROPHY URBAN CORE PROPERTY - HOUSTON, TEXAS: NNN Properties
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VELVET TACO GALLERIA
HOUSTON, TEXAS:
TROPHY URBAN CORE PROPERTY
15-Year Single Tenant Ground Lease Property Photo
2626 West Loop South, Houston, TX 77027 EXCLUSIVE OFFERING
Representative Photo
Table of Contents
Investment Overview 4
Investment Highlights 5
Financial Analysis 6
FB Society 7
Concept Overview 8
In Recent News 9
Property Photos 10-15
Surrounding Area 16-17
The Galleria 18
Location Overview 19
Houston, Texas Overview 20-21
HOUSTON, TEXAS:
State Map 22
Demographics 23
TROPHY URBAN CORE PROPERTY
Confidentiality and Disclaimer
Marcus & Millichap hereby advises all prospective purchasers of other material terms of the lease; cash flow may be interrupted the accuracy or completeness of the information provided. All
Net Leased property as follows: in part or in whole due to market, economic, environmental or potential buyers must take appropriate measures to verify all of
other conditions. Regardless of tenant history and lease the information set forth herein.
The information contained in this Marketing Brochure has been guarantees, Buyer is responsible for conducting his/her own
obtained from sources we believe to be reliable. However, investigation of all matters affecting the intrinsic value of the NON-ENDORSEMENT NOTICE
Marcus & Millichap has not and will not verify any of this property and the value of any long-term lease, including the
information, nor has Marcus & Millichap conducted any likelihood of locating a replacement tenant if the current tenant Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”)
investigation regarding these matters. Marcus & Millichap makes should default or abandon the property, and the lease terms that is not affiliated with, sponsored by, or endorsed by any
no guarantee, warranty or representation whatsoever about the Buyer may be able to negotiate with a potential replacement commercial tenant or lessee identified in this marketing package.
accuracy or completeness of any information provided. tenant considering the location of the property, and Buyer’s legal The presence of any corporation’s logo or name is not intended
ability to make alternate use of the property. to indicate or imply affiliation with, or sponsorship or
As the Buyer of a net leased property, it is the Buyer’s By accepting this Marketing Brochure you agree to release Marcus endorsement by, said corporation of M&M, its affiliates or
responsibility to independently confirm the accuracy and & Millichap Real Estate Investment Services and hold it harmless subsidiaries, or any agent, product, service, or commercial listing
completeness of all material information before completing any from any kind of claim, cost, expense, or liability arising out of of M&M, and is solely included for the purpose of providing tenant
purchase. This Marketing Brochure is not a substitute for your your investigation and/or purchase of this net leased property. lessee information about this listing to prospective customers.
thorough due diligence investigation of this investment
opportunity. Marcus & Millichap expressly denies any obligation CONFIDENTIALITY AND DISCLAIMER ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE
to conduct a due diligence examination of this Property for CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
Buyer. The information contained in the following Marketing Brochure is
proprietary and strictly confidential. It is intended to be SPEICAL COVID-19 NOTICE
Any projections, opinions, assumptions or estimates used in this reviewed only by the party receiving it from Marcus & Millichap
Marketing Brochure are for example only and do not represent and should not be made available to any other person or entity All potential buyers are strongly advised to take advantage of
the current or future performance of this property. The value of without the written consent of Marcus & Millichap. This their opportunities and obligations to conduct thorough due
a net leased property to you depends on factors that should be Marketing Brochure has been prepared to provide summary, diligence and seek expert opinions as they may deem necessary,
evaluated by you and your tax, financial and legal advisors. unverified information to prospective purchasers, and to establish especially given the unpredictable changes resulting from the
only a preliminary level of interest in the subject property. The continuing COVID-19 pandemic. Marcus & Millichap has not been
Buyer and Buyer’s tax, financial, legal, and construction advisors information contained herein is not a substitute for a thorough retained to perform, and cannot conduct, due diligence on behalf
should conduct a careful, independent investigation of any net due diligence investigation. Marcus & Millichap has not made any of any prospective purchaser. Marcus & Millichap’s principal
leased property to determine to your satisfaction with the investigation, and makes no warranty or representation, with expertise is in marketing investment properties and acting as
suitability of the property for your needs. respect to the income or expenses for the subject property, the intermediaries between buyers and sellers. Marcus & Millichap
future projected financial performance of the property, the size and its investment professionals cannot and will not act as
Like all real estate investments, this investment carries and square footage of the property and improvements, the lawyers, accountants, contractors, or engineers. All potential
significant risks. Buyer and Buyer’s legal and financial advisors presence or absence of contaminating substances, PCB’s or buyers are admonished and advised to engage other professionals
must request and carefully review all legal and financial asbestos, the compliance with State and Federal regulations, the on legal issues, tax, regulatory, financial, and accounting
documents related to the property and tenant. While the physical condition of the improvements thereon, or the financial matters, and for questions involving the property’s physical
tenant’s past performance at this or other locations is an condition or business prospects of any tenant, or any tenant’s condition or financial outlook. Projections and pro forma
important consideration, it is not a guarantee of future success. plans or intentions to continue its occupancy of the subject financial statements are not guarantees and, given the potential
Similarly, the lease rate for some properties, including newly- property. The information contained in this Marketing Brochure volatility created by COVID-19, all potential buyers should be
constructed facilities or newly-acquired locations, may be set has been obtained from sources we believe to be reliable; comfortable with and rely solely on their own projections,
based on a tenant’s projected sales with little or no record of however, Marcus & Millichap has not verified, and will not verify, analyses, and decision-making.)
actual performance, or comparable rents for the area. Returns any of the information contained herein, nor has Marcus &
are not guaranteed; the tenant and any guarantors may fail to Millichap conducted any investigation regarding these matters
pay the lease rent or property taxes, or may fail to comply with and makes no warranty or representation whatsoever regarding
3
INVESTMENT OVERVIEW
PRICE: $7,777,778 | CAP: 4.50% | RENT: $350,000
15-Year Triple-Net Ground Lease
Marcus & Millichap is pleased to present the exclusive offering for a subject Velvet Taco; an investment opportunity in the economic powerhouse
of Southeast Texas within Harris County, and more particularly located at 2626 West Loop South in Houston, Texas. Opened January 25th, 2021,
the subject investment consists of a 2,132 SF building on a +/- 0.23-acre parcel. Situated just off one of the nation’s busiest thoroughfares, Loop
610 as an outparcel to The Galleria, Texas’ largest shopping center and fourth largest domain nationally. The subject property is located on the
west side of Loop 610, which experiences average daily traffic counts exceeding 252,400 vehicles, respectively. To the west: Dillard’s; To the
south: The Galleria; To the east: Shell Gasoline. Houston is a city in Texas, within the Houston - The Woodlands - Sugar Land metropolitan
statistical area.
The investment opportunity is subject to a brand new 15-year, triple-net ground lease with Taco Libre XXIII, LLC dba Velvet Taco (“Tenant”).
The lease commenced upon store opening, January 25th, 2021 and is subject to two (2), five (5)-year tenant renewal options, bringing the total
possible lease term to 25 years. The initial rent is $350,000 and is subject to increase by ten percent (10.0%) every five years. The lease is
corporately guaranteed by Velvet Taco, Inc.; which currently operates 20-units and has vast expansion plans.
About the Tenant
Velvet Taco is a temple to the liberated taco. They’re a one-of-a-kind taco concept serving premium food in a unique & funky fast-casual setting.
Founded in 2011, the Dallas-based concept set out to elevate the taco through globally inspired recipes and the freshest ingredients. The
acclaimed restaurant provides a broad sampling of international tastes and inventive combinations, delivering flavors that are as memorable as
they are delicious. Velvet Taco is disrupting the idea of the taco shop, with an inspired response to consumers' increasing desire for premium
quality and a fun, authentic dining experience. In 2016, Velvet Taco was awarded Nation’s Restaurant News “Hot Concept.” With a handmade
tortilla as their vessel and the guiding motto “set my tacos free,” the sky's the limit on Velvet Taco’s menu. Drawing from globe-trotting flavors and
breaking the mold with inventive combinations, the chef-inspired concept offers a broad sampling of over 20 taco varieties on their innovative
menu, as well as creative sides and dessert. Chefs prepare everything from scratch—from slow-roasted rotisserie chicken to housemade
pickles—and borrow from the historic roots of inner-city taquerias on one hand, and modern recipes on the other. The company is partnered with L
Catterton, a leading consumer focused private equity firm that has invested in high-profile companies such as Equinox, Vitamin Water, and
CorePower Yoga.
4
INVESTMENT HIGHLIGHTS
PRICE: $7,777,778 | CAP: 4.50% | RENT: $350,000
PICTURESQUE, TROPHY REAL ESTATE – OPTIMAL LEASE STRUCTURE
✓ Brand New 15-Year Triple-Net (NNN) Ground Lease
✓ Absolute Triple Net (NNN) Lease with Zero Landlord Responsibilities
✓ Attractive Rent Increases: 10% Every 5 Years
✓ Two (2),Five (5)-Year Tenant Renewal Options
✓ E-Commerce Resistant Investment Opportunity
✓ Exceptional, Proven Operator | Corporate Guarantee
✓ Fast Casual Leading Performance – Velvet Taco’s AUV is More Than Double the
Segment Average!
LOCATED IN THE CENTER OF NEW GROWTH
✓ National and Regional Draw – Strong tenant mix of retailers such as Costco
Wholesale, Target, Walmart, The Home Depot, Sam’s Club, Lifetime Fitness, and
More
✓ Tremendous Freeway Visibility and Access: Situated on W Loop S (Loop 610), I-
69 and Westheimer Road, average daily traffic counts exceed 252,400, 349,000 and
60,000 vehicles, respectively.
✓ Irreplaceable Real Estate: Situated as a outparcel to The Galleria, Texas’ largest
shopping center and fourth largest domain nationally, which experiences over 30
million visitors annually.
✓ Affluent Suburban Community: The average household income within a one-mile
radius of the subject property exceeds over $150,000.
✓ City of Houston had a population of 2.3 million as of 2019, making it the fourth most
populous U.S. city. Only New York, Los Angeles and Chicago have more residents.
Houston has been Texas’ most populous city since 1930.
✓ The Houston MSA is home to 22 Fortune 500 headquarters, ranking fourth among
metro areas. Many other Fortune 500 companies maintain U.S. administrative
headquarters in Houston.
5
FINANCIAL OVERVIEW
PRICE: $7,777,778 | CAP: 4.50% | RENT: $350,000
PROPERTY DESCRIPTION RENT SCHEDULE
Property Name Velvet Taco Lease Year(s) Annual Rent Monthly Rent Rent Escalation (%)
Property Address 2626 West Loop South Current - 1/25/2022 $350,000 $29,167 -
City, State, ZIP Houston, TX 77027 1/25/2022 - 1/25/2023 $350,000 $29,167 -
Store Opened January 25th, 2021 1/25/2023 - 1/25/2024 $350,000 $29,167 -
Building Size 2,132 SF 1/25/2024 - 1/25/2025 $350,000 $29,167 -
Lot Size +/- 0.23 Acres 1/25/2025 - 1/25/2026 $350,000 $29,167 -
Type of Ownership Ground Lease 1/25/2026 - 1/25/2027 $385,000 $32,083 10.0%
THE OFFERING 1/25/2027 - 1/25/2028 $385,000 $32,083 -
Purchase Price $7,777,778 1/25/2028 - 1/25/2029 $385,000 $32,083 -
CAP Rate 4.50% 1/25/2029 - 1/25/2030 $385,000 $32,083 -
Annual Rent $350,000* 1/25/2030 - 1/25/2031 $385,000 $32,083 -
LEASE SUMMARY 1/25/2031 - 1/25/2032 $423,500 $35,292 10.0%
Property Type Net-Lease Fast Casual Restaurant 1/25/2032 - 1/25/2033 $423,500 $35,292 -
Tenant Taco Libre XXIII, LLC dba Velvet Taco 1/25/2033 - 1/25/2034 $423,500 $35,292 -
Velvet Taco, Inc. 1/25/2034 - 1/25/2035 $423,500 $35,292 -
Guarantor
1/25/2035 - 12/31/2035 $423,500 $35,292 -
Original Lease Term 15.0 Years
Lease Commencement 1/25/2021
Lease Expiration 12/31/2035
Lease Term Remaining 15.0 Years
Lease Type Triple-Net (NNN)
Roof & Structure Tenant Responsible
Rent Escalations 10% Every Five Years
Options to Renew Two (2), Five (5) Year Options
* Rent is subject to change. Please contact listing brokers for more details.
6
FB SOCIETY
FB Society (formerly Front Burner Restaurants) is
the restaurant innovation lab behind unique
concepts such as Whiskey Cake, Legacy Hall,
Mexican Sugar, Sixty Vines, Haywire and more. The
company is driven by a thriving culture and constant
pursuit of perfection. Its mission is to create and
execute experiences never imagined. Known for its
creativity, experiential approach, exquisite attention
to detail, culinary innovation, and creation and
development of emerging brands, the Society now
boasts a diverse portfolio of 10 restaurant brands
across 25 locations, a one-of-a-kind food hall,
Modern Pour and Vestals premium catering,
Bingham House event venue, Unlawful Assembly
Brewing Co. and the non-profit Furlough Kitchen,
with more concepts on the horizon.
Visionaries. Imaginarians. Creators.
United in a common purpose; to create & execute experiences never imagined.
7
CONCEPT OVERVIEW
Velvet Taco, created by Dallas-based FB Society
(formerly Front Burner Restaurants) and partnered with COMPANY OVERVIEW
consumer-focused private equity fund L Catterton since
2016, is a one-of-a-kind fast casual taco restaurant with a 2011 20
globally-inspired menu that breaks the traditional bounds
of Tex-Mex cuisine. YEAR FOUNDED Current # of Locations
1 Opening Soon in San Antonio
❑ Founded in 2011 with a single location in Dallas, Texas, Velvet Taco
has quickly expanded to 19 locations across Dallas, Houston, Austin, $4.2M DALLAS, TX
Atlanta, Charlotte, and Chicago. Given Velvet Taco’s proven concept
and customer loyalty, the company is poised for significant growth in 2020 AUV Corporate HQ
the coming years. Four locations debuted during the pandemic,
including record opening week sales of more than $100,000 at the
Addison and Plano stores. Eleven stores are planned for 2021, and
nine restaurants are in varying stages of development for 2022.
L CATTERON www.velvettaco.com
Sponsor WEBSITE
❑ Velvet Taco model is designed to maximize guest satisfaction and
ensure return visits. With a diverse, INTERNATIONAL MENU, high
quality ingredients, scratch-made corn tortillas and a totally
customizable menu, Velvet Taco connects with today’s consumer. The
RECOGNITION
model includes a fast-ordering process, an open kitchen with chicken
“5 Must-Try Tacos from Velvet Taco’s Newest Location in
cooking on a rotisserie, and a combination of fine dining cuisine in a
Atlanta” SEPTEMBER 2019
fast casual format. There are no TVs. It’s all about the food!
“The 50 Best Taco Spots in America” 2019
❑ 100% Taco Centric, Visual Presentation is just as important as the
flavor, seriously scratch made, global fusion of flavors & cultures, Nominated for “What is Dallas’ Best Taco Shop?” JULY 2019
relentless innovation, and serious vibe, makes Velvet Taco one of a
kind. Named “7 Emerging Dallas Fast Casuals to keep on your
Radar” JULY 2019
❑ In 2016, Velvet Taco received a significant strategic growth investment “Hot Concepts 2016: Globally-inspired fast casual concept
from L Catterton, a private equity firm that specializes in growing Velvet Taco resonates with foodies and investors”
consumer brands from a variety of industries. L Catterton’s investment SEPTEMBER 2016
has accelerated Velvet Taco’s growth while providing countless
resources through the its strategic partnerships and experienced #3 Essential Dallas-Fort Worth Taqueria
leadership team. The years following that transaction, the brand has
#14 Best 50 Tacos in America
more than quadrupled in size.
#3 Most Instagrammed Restaurant in Dallas
8
https://www.qsrmagazine.com/fast-casual/velvet-taco
IN RECENT NEWS
Velvet Taco Aims to Disrupt the Fast-Casual Taco Space
Off-premises orders grew by 90 percent in 2020!
No other brand is better positioned for growth in the “Our high average unit volume and industry-leading Dover said Velvet Taco fills a gap for those looking for a
limited fast-casual taco category than Velvet Taco, CEO restaurant performance makes me feel confident that we chef-driven experience. The difference is that the brand
Clay Dover said. will continue to provide a great ROI performance for our is 100 percent taco-centric, meaning it doesn’t do bowls,
restaurants,” Dover said. “We have a great team in the wraps, or any other variation. The menu comprises 20
Velvet Taco considers its competitors to be Rusty Taco, Restaurant Support Office as well as in the field leading tacos, four sides, and one dessert. Everything in the
Chronic Tacos, Torchy’s Tacos, and national behemoth our multi-unit, seasoned managers that have been well- restaurant is scratch-made without a freezer—kitchens
Chipotle. Velvet Taco, which has 17 company-run stores trained. They’re very excited about growing our brand.” char their own tomatoes, roast meats, and marinate
and one licensed location, is the smallest of the bunch, chicken.
but there is reason for Dover’s optimism. Founded in Dallas in 2011, Velvet Taco has been
majority-owned by private equity firm L Catterton since Some of the tacos are globally inspired, including the
Velvet Taco's mode of operation transitioned smoothly 2016. In the years following that transaction, the brand best-selling Spicy Tikki Chicken (crisp tenders, spicy
to COVID times. In many locations, the restaurant has a has more than quadrupled in size. Four locations tikka sauce, buttered cilantro basmati rice, raita crema,
dedicated takeout window and drive-thru pickup window. debuted during the pandemic, including record opening Thai basil, and flour tortilla) and Korean Pork (angry
Pre-COVID, sales outside the four walls mixed 37 week sales of more than $100,000 at the Addison and crema, kimchee slaw, pickled fresnos, cilantro, corn
percent, but rose to 65 percent in 2020. That translated Plano stores. Eleven stores are planned for 2021, and tortilla). Velvet Taco also runs a Weekly Taco Feature
to a 90 percent increase in off-premises orders. The nine restaurants are in varying stages of development that highlights different flavors throughout the year, such
chain expects off-premises to hover around a mix of 55 for 2022. as Chicken Fried Oyster, Paneer Hash, and BBQ Ranch
percent in 2021. Pork.
Currently, Velvet Taco is located in the Dallas, Houston,
“In trying times now, as well as in the future, we’ll make Chicago, Atlanta, Austin, and Charlotte markets. It’s “I’m passionate that Velvet Taco is an innovative
sure that we get great tacos in the hands of everyone planning to expand into Nashville, San Antonio, and concept and uniquely positioned,” Dover said. “Between
who is interested,” Dover said during the brand’s ICR college towns like Lubbock and College Station, Texas, our limited service, our ability to scale with takeout and
Conference presentation earlier this month. and Norman, Oklahoma. On average, stores are 2,500 our digital positioning, we’ll be able to scale with growth
square feet, but Velvet Taco does have a 400-square- and be well-positioned for consumers, not just in this
Digital mixed 23 percent pre-COVID, but boosted to 42 foot food hall location that earns $30,000 in weekly time, but in the years to come.”
percent in 2020—good for an 83 percent increase in sales. It’s also developing an 800-square-foot pickup
digital sales. The brand believes digital will mix around only store.
30 percent this year as it develops a new loyalty
program. Velvet Taco also launched a catering channel “We believe that we have great market share, not only in
that’s projected to add $10 million in incremental sales in the existing markets that we have, but we’ve
2021. The program is COVID modified for individual commissioned a white space study with Sitewise in
lunch orders as well as large group orders. which we’re going through and identifying opportunities
throughout both the U.S. as well as internationally,”
The chain boasts an AUV of $4.2 million and an average Dover said. “We believe there’s a great opportunity to
check of $20.75. grow in the years to come.”
9
PROPERTY PHOTOS
Actual Property Photo
10PROPERTY PHOTO
Actual Property Photo
11PROPERTY PHOTO
Actual Property Photo
12INTERIOR
Addison, TX Location
13INTERIOR
Addison, TX Location
14INTERIOR
Addison, TX Location
15SURROUNDING AREA
GEORGE BUSH
INTERCONTINENTAL
AIRPORT
16.7 MILLION PASSENGERS ANNUALLY
RIVER OAKS
COUNTRY CLUB
RIVER OAKS
DISTRICT
THE GALLERIA
A SIMON MALL
375+ Stores, 30 Restaurants, 3 Office
Towers, 2 Hotels & 1 Ice Rink
ADTC 349,000
195,000 Residents UNIVERSITY OF HOUSTON, TEXAS
Within 3-Mile Radius SOUTHERN UNIVERSITY & RICE
UNIVERSITY
8 MILES
Total of 63,000 Students Enrolled
SUBJECT PROPERTY 16SURROUNDING AREA
17THE GALLERIA
A plethora of amenities, including a full-size ice rink for recreational and
figure skating, a state of the art children’s play area, two swimming pools,
full-service national and international banks, multiple tax-free
reimbursement locations for international guests, two tailor shops,
several beauty salons, and a post office, continually serve a wide range of
shopper delights.
There are nine valet parking stations and 13,000 parking spaces in seven
garages to accommodate drivers. Nestled between two of the city’s most
exclusive neighborhoods, River Oaks and Memorial, The Galleria is as
internationally respected for its architectural style and imprint as its
shopping panache. Modeled after the revered Galleria Vittorio Emanuele
in Milan, built in 1867, The Galleria stands as one of the premier
examples of a dynamic, mixed-use, urban environment. More than 7,000
business professionals in the adjoining office towers, offering 1.1 million
square feet of office space, reap the benefit and convenience of having
The Galleria just a short walk away.
For shopping, opportunities are endless at anchoring stores Neiman
Marcus, Saks Fifth Avenue, Nordstrom, Macy’s and at high-fashion
TEXAS’ LARGEST SHOPPING DESTINATION – favorites, such as: CELINE, CHANEL, Christian Louboutin, FENDI, Gucci,
OVER 30 MILLION VISITORS ANNUALLY Lora Piana, Louis Vuitton, Prada, Saint Laurent, Tiffany & Co., Tod's and
Valentino. Younger shoppers adore fashion-forward collections found at
More than 30 million visitors each year seek the dynamic & fine H&M, Urban Outfitters and the trendy must-haves from AllSaints, Club
shopping environment uniquely offered by The Galleria, Texas’ largest Monaco and Ted Baker. Galleria shoppers are assured all the latest trends
shopping center and fourth largest domain nationally. International for home and lifestyle from Apple, Samsung Experience Store, and b8ta –
guests and Houstonians blend seamlessly in the center while on just a few of the fine retailers that range from Aritzia to Zara.
shopping excursions or entertaining guests at one of the signature
eateries. In addition to the abundant array of shopping choices, The Galleria also
has more than 60 dining options ranging from fine dining at Del Frisco's
Spanning 2.4 million square feet of space, housing 400 fine stores and Double Eagle Steak House, Nobu, and Fig & Olive to casual favorites such
restaurants, two high-rise Westin hotels, and three office towers, The as Blanco Tacos + Tequlia, The Cheesecake Factory and more. The
Galleria is Houston’s most popular retail and tourist destination, Galleria is located at the corner of Westheimer Rd and Post Oak Blvd in
meeting every style and taste. the heart of Uptown Houston.
18LOCATION OVERVIEW
SURROUNDING RETAIL & POINTS OF INTEREST
The subject property is well-positioned as an outparcel to The Galleria,
nestled amidst a strong tenant mix of retailers, hospitality
accommodations, medical facilities and academic institutions. National
retailers in the immediate area include Costco Wholesale, Target,
Walmart, The Home Depot, Sam’s Club, Lifetime Fitness, as well as ADTC: 60,000
several others. Texas Medical Center (TMC), the largest medical complex ADTC: 46,500
in the world with over 106,000 employees and 9,200 patient beds, is
located within a six-mile radius of the subject property. The site benefits
from its proximity to several academic institutions. The most notable are
the University of Houston, Texas Southern University and Rice University, ADTC: 252,400
which have a combined total enrollment exceeding 63,000 students, and
are situated within an eight-mile radius of the subject Velvet Taco. George
Bush International Airport (IAH) serves over 16,700,000 passengers
annually and is located 22 miles from the subject property.
DEMOGRAPHICS
Houston has a strong population with approximately 195,000 individuals
residing within a three-mile radius of the property and more than 505,800
individuals within a five-mile radius. Additionally, this Velvet Taco property
is situated in an extremely affluent suburban community with an average
household income exceeding $150,500 within a one-mile radius.
TRAFFIC COUNTS
ADTC: 349,000
This Velvet Taco property is positioned in a highly trafficked area along
West Loop South, which feeds directly from one of the nation’s busiest
thoroughfares, Loop 610. Loop 610 experiences an average daily traffic
count of 252,400 vehicles, respectively. Intersecting with Loop 610 is
Interstate-69 and Westheimer Road, which brings an additional 349,000
and 60,000 vehicles to the immediate area on average daily. Additionally,
Post Oak Blvd runs parallel to the property, bringing in another 46,500
vehicles daily.
19HOUSTON TEXAS MARKET OVERVIEW Houston is the most populous city in the U.S. state of Texas, fourth-most populous city in the United States, most populous city in the Southern United States, as well as the sixth-most populous in North America, with an estimated 2019 population of 2,320,268. Located in Southeast Texas near Galveston Bay and the Gulf of Mexico, it is the seat of Harris County and the principal city of the Greater Houston metropolitan area, which is the fifth- most populous metropolitan statistical area in the United States and the second-most populous in Texas after the Dallas–Fort Worth metroplex, with a population of 7,066,141 in 2019. Houston is the southeast anchor of the greater megaregion known as the Texas Triangle. At 655 square miles, the City of Houston could contain the cities of New York, Washington, Boston, San Francisco, Seattle, Minneapolis and Miami. Houston has grown to become the energy capital of the world. Houston is a globally recognized leader in life science, manufacturing, logistics, and aerospace. As these industries digitize, Houston is a hotbed of rapid technological development thanks to our access to customers and expertise. A thriving international city, Houston’s ties stretch to all corners of the world. The region’s geographic location makes it easy to move both goods and people around the globe. With one of the largest ports in the country and two international airports, Houston connects companies to the world. As a testament to its standing as a diverse and dynamic city, one in four residents is born abroad and more than 145 languages are spoken in Houston. In the mid-20th century, Houston's economy diversified, as it became home to the Texas Medical Center—the world's largest concentration of healthcare and research institutions—and NASA's Johnson Space Center, where the Mission Control Center is located. GQ Magazine deemed Houston the "New Capital of Southern Cool" (2018). Thrillist ranked Houston among "The 7 Most Impressive American Cities of 2017" for its diverse population, affordability and strong economy (2018). WalletHub ranked Houston among 2018’s Most Fun Cities in America (2018). 20
HOUSTON OVERVIEW The Houston metro is located in southeastern Texas and 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. As
local industries have diversified from oil to technology and healthcare,
population growth has sprawled, primarily to the north and west, sustaining
Houston’s position as the fifth-most populated metro in the nation with
more than 6.9 million residents. The city of Houston is home to nearly 2.3
million residents.
CORPORATE GROWTH
Houston will remain a top destination for corporate
relocations due to its business-friendly environment.
Twenty-two Fortune 500 companies are headquartered
in the metro.
HIGHER EDUCATION
Over 40 post-secondary educational institutions are
located in the metro. Nearly 30 percent of residents have
attained a bachelor’s degree, with 10 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.
Quality of Life
Outdoor activities abound in Houston as a result of the city’s favorable
location and climate. More than a dozen state parks and recreation areas
lie within a short drive of Houston, as well as more than 500 parks and
open spaces, along with 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 the
Texas Medical Center, the largest of its kind in the world. Houston is
home to four professional sports teams: the Houston Texans, the Houston
Astros, the Houston Rockets and the Houston Dynamo.
21TEXAS
DEMOGRAPHICS
1 Mile 3 Miles 5 Miles
POPULATION
2025 Projection 27,891 206,445 538,727
2020 Estimate 24,941 195,081 505,873
5 Miles 2010 Census 20,102 175,245 445,597
2000 Census 15,943 162,095 408,897
3 Miles
INCOME
Average $150,596 $145,136 $134,855
Median $91,220 $78,120 $75,007
1 Mile Per Capita $89,678 $69,246 $63,009
HOUSEHOLDS
2025 Projection 16,569 98,899 253,231
2020 Estimate 14,842 93,009 235,613
2010 Census 11,911 81,809 203,246
2000 Census 9,368 77,598 185,912
HOUSING
2020 $464,022 $512,584 $398,159
EMPLOYMENT
2020 Daytime Population 102,473 366,565 889,863
2020 Unemployment 3.48% 2.69% 2.65%
2020 Median Time Traveled 22 Mins 24 Mins 25 Mins
RACE & ETHNICITY
2020 2020 2020 2020 MEDIAN White 72.89% 68.65% 65.46%
POPULATION: HOUSEHOLDS: MEDIAN AGE: HOUSEHOLD INCOME:
Native American 0.04% 0.04% 0.05%
7.54 M 2.62 M 34.4 $64,800 African American 6.31% 6.62% 9.29%
Growth
2019-2024*:
Growth
2019-2024*:
U.S. Median: U.S. Median: Asian/Pacific Islander 14.28% 9.97% 10.40%
10.8% 11.2% 38.1 $60,800
23Information About Brokerage Services
HOUSTON, TEXAS:
TROPHY URBAN CORE PROPERTY
TX Broker of Record:
Timothy Speck
Marcus & Millichap
5001 Spring Valley Road, Suite 100W
Dallas, TX 75244
Tel: 972-755-5200
Fax: 972-755-5210
License: 432723
24CONTACT
GLEN KUNOFSKY JAMES WESTERBERG MORGAN THAU
Glen.Kunofsky@marcusmillichap.com James.Westerberg@marcusmillichap.com Morgan.Thau@marcusmillichap.com
212.430.5115 646.805.1449 212.430.5295
NY: 10301203289 NY: 10401302501 NY: 10401316152
HOUSTON, TEXAS:
TROPHY URBAN CORE PROPERTY
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