Executive Summary:
This offering memorandum highlights an exceptional chance to invest in a flexible commercial property situated in Katy, TX, presenting an incredible opportunity for potential buyers. The purchase agreement is readily available. The current 11,500 sq ft building provides various income streams, yielding an annual revenue of $335,348, with a net operating income of $246,544.10 after all expenses, including taxes and insurance. With over 70,000 sq ft of land, the property not only offers immediate income but also holds substantial potential for future development. This presents an awesome redevelopment opportunity for any commercial real estate developers, blending current income with promising future growth prospects.
Highlights:
Multiple Income Streams: Currently functions as a community theater, houses multiple churches and classes, and offers a dedicated food truck operation area.
Strong Financials: Demonstrates a 10.87% cap rate and estimated 1.54 debt service coverage ratio (DSCR) the Est DSCR IS BASED ON 6.8% INTEREST AND 10% DOWN, indicating a stable and profitable investment.
Growth Potential: Negotiations are underway to add two additional churches, increasing annual revenue by $50,000 and bolstering key financial metrics.
Future Development: The substantial land parcel allows for potential expansion or re-development based on future market needs.
Below Market Price: Priced at $2,275,000, significantly below the average purchase price of surrounding commercial properties ($7,877,264.4).
Property Description:
The property is strategically located in Katy, TX, a rapidly growing suburb with a strong and diverse economy. The versatile building currently houses a community theater, multiple churches, various classes, and a designated food truck area. This unique combination generates multiple income streams, offering investors a hedge against market fluctuations.
Financial Analysis:The property boasts a healthy 10.87% cap rate and an estimated 1.54 DSCR, demonstrating strong financial performance. Adding two leases (currently under negotiation) is projected to increase annual revenue by $50,000, elevating the proforma cap rate to 13.04% and the proforma DSCR to 1.85%.
Investment Opportunity:
This offering presents an attractive opportunity for investors seeking a well-established commercial property with diverse income streams and significant growth potential. The property's below-market price, combined with its strong financials and future development possibilities, makes it a compelling investment for both income-oriented and value-add investors.
Picture Link: https://photos.app.goo.gl/bYyCqVqprinYZHZF6
Next Steps:
For further information or to schedule a property tour, please contact: Derrick Davis 972-643-8565. Full offering memorandum sent upon request.
