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5757 WESTHEIMER ROAD, HOUSTON, TX

New
Requested by Last Mile Investments


EXECUTIVE SUMMARY



Last Mile Investments is pleased to request a $5,350,000 (54% LTC) loan for the
initial financing of a retail shopping center property located at 5757
Westheimer Road, Houston, TX 77057 (the "Property").

Located on Westheimer Rd., one of Houston's dominant thoroughfares and retail
corridors with over 60,000 cars per day!

The sponsor, Last Mile Investments ("LMI"), is a pure-play retail operator and
owner with a strong track record. LMI is acquiring the property all cash with a
scheduled closing in June 2024. LMI is seeking financing post acquisition of the
property.

LMI is seeking $4,750,000 of initial loan funding and $600,000 of additional
capex loan draws/earnout to cover capital investment (CI/TI/LC).

This property has significant NOI upside with Mark-to-Market opportunities on
the entire rent roll:

 * Rents in the corridor range from $35-55/sf today, with our existing rent roll
   averaging $25/sf
   
   Current Rent as a % of Market today is 60-70%



Asset Management Plan:

Capital Investment:

 * Paint/Façade Refresh – modern, clean color scheme – see attached for a recent
   renovation of a like-kind center in our portfolio (this will provide a feel
   of what Westheimer center can look like)

 * Pylon Sign Repairs and Paint (One of the largest Pylon signs possible, a
   major asset for this center)

 * Deferred Maintenance including parking lot repairs.

 * This facelift/capital investment will set our asset apart from many of the
   competing centers on Westheimer – standing out as one of the assets that is
   owned by an institutional quality landlord; something this immediate trade
   area hasn’t had a lot of due to how tightly held the real estate is

Mark to Market Opportunities across the entire rent roll:

 * All leases either 1) do not have lease extension options or 2) have Fair
   Market Value options – giving LMI significant leverage in negotiating mark to
   market rental increases upon renewal and/or flexibility to recapture certain
   spaces to improve merchandising/co-tenancy with more cache tenant and optimal
   tenant mix over time (which will also drive future rent growth and valuation
   here)
   
   This is very rare to be in command of the entire rent roll over the next 3 to
   4 years, especially in a submarket/retail node of this strength



 * Recourse - we are ideally seeking non-recourse financing options. If you do
   not have a non-recourse product, we can discuss partial, ideally with a burn
   down feature.




LOAN REQUEST

Lender Program Fit: High*Loan RequestYour ProgramLoan Size
$5.3MM
$1MM-$12.5MMMax LTV
48.6%
70.0%Max LTC
54.0%
70.0%Recourse
Corporate Guarantee - Burn Off
Yes

*This deal was sent to you because it corresponds to one of your programs.


PROPERTY OVERVIEW



GLA: 24,000

Occupancy: 100%

See Executive Summary and Market Overview for additional highlights




PROJECT OVERVIEW



See highlights



Project Photos



FINANCIALS & DOCUMENTS



 * Total Loan Amount: $5,350,000

 * Loan-to-Cost (LTC): 54%

 * Stabilized Value: $11,000,000

 * Loan-to-Stabilized Value (LTV): 49%

 * In-Place NOI: $611,258

 * Stabilized NOI: $725,000 to $800,000

 * Entry Debt Service Coverage Ratio (DSCR): ~1.60x

 * Entry Debt Yeild: 12.9%

 * Stabilized DSC (Stabilized NOI / Total Loan Package): ~1.65x

 * Stabilized Debt Yield: 13.6%

 * Seeking Fixed Rate Loan

 * Total LMI Cost Basis = 9,950,000
   
   Purchase Price: $9,050,000
   
   Closing Costs: $250,000
   
   Capex: $650,000
   
   



DocumentsDownload AllRequest Documents

Document TypeDate Uploaded
Current Rent Roll13678/westheimer_-_rent_roll_and_noi.xlsx
05/20/24
Other13678/example_asset_-_last_mile_-_emerson_commons_-_renovation_-_before_after.pdf
06/05/24


SPONSOR

Last Mile Investments
www.lastmileinvestments.com•OH

Who we are:

 * Real Estate Investment Manager 100% focused on the retail sector

 * Partnership with Family Office - North American Properties (“NAP”) -  best in
   class track record dating back to the 1960’s with over $7B of investments to
   date
   
   North American Properties (naproperties.com)

 * LMI is a leader in the “Last Mile” Essential Service Retail sector (see
   below)
   
   Between LMI and NAP, decades long track record in every aspect of retail
   investing, operations, value add, and development; as well as institutional
   fiduciary
   
   Own and Operate in 18 different MSA's and growing

 * $27M of our own capital invested alongside our Investors
   
   Currently two Funds, with expansion into several new verticals over the next
   18 months

Last Mile, Essential Services Retail

 * Location as the anchor:
   
   * The most convenient, highly trafficked, affluent, suburban real estate
   
   * In low vacancy, high tenant demand locations/nodes/submarkets
   
   * Within an under supplied sector (going on 15 years)

 * Secular increase in tenant demand
   
   * Highest demand, lowest capital investment, easy-to-lease space – due to
     location and small format unit sizes (~2,000 SF)
   
   * No box risk – which have flat/low growth leases, high cost re-tenanting,
     co-tenancy, leasing restrictions, etc
   
   * Deep, broad, and increasing demand from service, necessity,
     convenience-driven tenants within the following industries:
     
     * F&B, medical, dental, vision, wellness, service (nail, hair, etc)

 * Acquired at a significant discount to grocery and replacement cost

 * Located in top/institutionally in-demand and high-growth markets

 * Market leading leasing rental spreads and NOI growth (2x grocery anchored)

 * At the lowest risk (cash flow, healthy tenants, great real estate at
   acquisition) and low capital intensity

 * Within the most fragmented sector within retail, often acquired from non-real
   estate focused, un-motivated ownership base
   
   

Meet the team
Todd Pleiman
CFO
tpleiman@lastmileinvestments.com•
M(513) 668-7476
O(513) 288-4440


Todd Pleiman is the Chief Financial Officer and a Partner of Last Mile
Investments (“LMI”).  Todd also oversees and leads LMI’s Operations and Asset
Management teams for our real estate portfolios.

 Todd has 20 years of real estate operations, capital markets and finance
experience – 17 of those years working exclusively in the retail real estate
industry. Prior to becoming a Partner of Last Mile Investments, Todd most
recently served as Vice President of Capital Markets for Phillips Edison & Co.,
an owner and operator of grocery anchored shopping centers, and was responsible
for creating, executing and maintaining the company’s capital markets
strategies. In his time in that role, Todd executed over $6 billion of financing
transactions and played a strategic role in two company mergers.




MARKET OVERVIEW



Highlights:

 * Westheimer Rd is one of, if not the top and most established retail corridor
   in the entire Houston MSA

 * Westheimer Rd has 60,000+ VPD, nearly 2x the average traffic count of top
   retail REIT portfolios

 * Well-positioned up on Westheimer Road with A+ visibility, only ~1.5 miles
   West of The Galleria

 * The Galleria is owned by Simon Property Group and is Graded A++ per
   GreenStreet, pulling nearly 10M visitors per year

 * In GreenStreet grading system, they use a TAP Score which measures the
   strength of demand of a trade area – this trade area scores 96/100

 * Top tier signage on Westheimer that is grandfathered in (that you could not
   get today with new construction)

 * Tremendous upside with Mark-to-Market opportunity:
   
   Rents in the corridor range from $35-55/sf today, with our existing rent roll
   averaging $25/sf
   
   Current Rent as a % of Market today is 60-70%

 * Tightly held corridor – not a lot of trades occur; held by families/private
   investors for a long time
   
   Demand is only getting stronger – institutional buyers looking to acquire
   smaller strip centers combined with being a first to market retail node for
   national/regional tenants
   
   SITE Centers acquired a competitive center across the street last year for a
   5.75% cap rate.
   
   Per local leasing intel, SITE Center's rents are currently mid-$30’s+.  There
   is one space for lease at this center today. Guidance from the agent leasing
   this center, is they are quoting mid $40’s and expect to expect to execute at
   $40+psf.



Download PDF
5757 Westheimer Road, Houston, TX, 77057
Property StatusRefinancing
Loan TypeLight Bridge
TransactionRefinance
AssetRetail - Unanchored Center
Total Loan Amount$5.35MM
LTCUp to 54%
Project Costs$0
T12 NOI$611,258
Stabilized NOI$725,000
Stabilized Value$11MM
Estimated Value$9.5MM
Existing Debt$0
PassI'm interested
Contact Sponsor
Property Information
Square Feet24,000 sq ft
Per Square Foot$223/ft
Spaces12 spaces
Per Space$445,500/space
Occupancy100%
Project Information
Project DetailsProperty Details
GMP Contract in PlaceNo
Construction End DateN/A
Lease Up Date05/20/2024
Sponsor Financials

Download PDF


EXECUTIVE SUMMARY



Last Mile Investments is pleased to request a $5,350,000 (54% LTC) loan for the
initial financing of a retail shopping center property located at 5757
Westheimer Road, Houston, TX 77057 (the "Property").

Located on Westheimer Rd., one of Houston's dominant thoroughfares and retail
corridors with over 60,000 cars per day!

The sponsor, Last Mile Investments ("LMI"), is a pure-play retail operator and
owner with a strong track record. LMI is acquiring the property all cash with a
scheduled closing in June 2024. LMI is seeking financing post acquisition of the
property.

LMI is seeking $4,750,000 of initial loan funding and $600,000 of additional
capex loan draws/earnout to cover capital investment (CI/TI/LC).

This property has significant NOI upside with Mark-to-Market opportunities on
the entire rent roll:

 * Rents in the corridor range from $35-55/sf today, with our existing rent roll
   averaging $25/sf
   
   Current Rent as a % of Market today is 60-70%



Asset Management Plan:

Capital Investment:

 * Paint/Façade Refresh – modern, clean color scheme – see attached for a recent
   renovation of a like-kind center in our portfolio (this will provide a feel
   of what Westheimer center can look like)

 * Pylon Sign Repairs and Paint (One of the largest Pylon signs possible, a
   major asset for this center)

 * Deferred Maintenance including parking lot repairs.

 * This facelift/capital investment will set our asset apart from many of the
   competing centers on Westheimer – standing out as one of the assets that is
   owned by an institutional quality landlord; something this immediate trade
   area hasn’t had a lot of due to how tightly held the real estate is

Mark to Market Opportunities across the entire rent roll:

 * All leases either 1) do not have lease extension options or 2) have Fair
   Market Value options – giving LMI significant leverage in negotiating mark to
   market rental increases upon renewal and/or flexibility to recapture certain
   spaces to improve merchandising/co-tenancy with more cache tenant and optimal
   tenant mix over time (which will also drive future rent growth and valuation
   here)
   
   This is very rare to be in command of the entire rent roll over the next 3 to
   4 years, especially in a submarket/retail node of this strength



 * Recourse - we are ideally seeking non-recourse financing options. If you do
   not have a non-recourse product, we can discuss partial, ideally with a burn
   down feature.



--------------------------------------------------------------------------------


LOAN REQUEST

Lender Program Fit: High*Loan RequestYour ProgramLoan Size
$5.3MM
$1MM-$12.5MMMax LTV
48.6%
70.0%Max LTC
54.0%
70.0%Recourse
Corporate Guarantee - Burn Off
Yes

*This deal was sent to you because it corresponds to one of your programs.

--------------------------------------------------------------------------------


PROPERTY OVERVIEW



GLA: 24,000

Occupancy: 100%

See Executive Summary and Market Overview for additional highlights



Property Information
Square Feet24,000 sq ft
Per Square Foot$223/ft
Spaces12 spaces
Per Space$445,500/space
Occupancy100%

--------------------------------------------------------------------------------


PROJECT OVERVIEW



See highlights



Project Photos

Project Information
Project DetailsProperty Details
GMP Contract in PlaceNo
Construction End DateN/A
Lease Up Date05/20/2024

--------------------------------------------------------------------------------


FINANCIALS & DOCUMENTS



 * Total Loan Amount: $5,350,000

 * Loan-to-Cost (LTC): 54%

 * Stabilized Value: $11,000,000

 * Loan-to-Stabilized Value (LTV): 49%

 * In-Place NOI: $611,258

 * Stabilized NOI: $725,000 to $800,000

 * Entry Debt Service Coverage Ratio (DSCR): ~1.60x

 * Entry Debt Yeild: 12.9%

 * Stabilized DSC (Stabilized NOI / Total Loan Package): ~1.65x

 * Stabilized Debt Yield: 13.6%

 * Seeking Fixed Rate Loan

 * Total LMI Cost Basis = 9,950,000
   
   Purchase Price: $9,050,000
   
   Closing Costs: $250,000
   
   Capex: $650,000
   
   



DocumentsDownload AllRequest Documents

Document TypeDate Uploaded
Current Rent Roll13678/westheimer_-_rent_roll_and_noi.xlsx
05/20/24
Other13678/example_asset_-_last_mile_-_emerson_commons_-_renovation_-_before_after.pdf
06/05/24

--------------------------------------------------------------------------------


SPONSOR

Last Mile Investments
www.lastmileinvestments.com•OH

Who we are:

 * Real Estate Investment Manager 100% focused on the retail sector

 * Partnership with Family Office - North American Properties (“NAP”) -  best in
   class track record dating back to the 1960’s with over $7B of investments to
   date
   
   North American Properties (naproperties.com)

 * LMI is a leader in the “Last Mile” Essential Service Retail sector (see
   below)
   
   Between LMI and NAP, decades long track record in every aspect of retail
   investing, operations, value add, and development; as well as institutional
   fiduciary
   
   Own and Operate in 18 different MSA's and growing

 * $27M of our own capital invested alongside our Investors
   
   Currently two Funds, with expansion into several new verticals over the next
   18 months

Last Mile, Essential Services Retail

 * Location as the anchor:
   
   * The most convenient, highly trafficked, affluent, suburban real estate
   
   * In low vacancy, high tenant demand locations/nodes/submarkets
   
   * Within an under supplied sector (going on 15 years)

 * Secular increase in tenant demand
   
   * Highest demand, lowest capital investment, easy-to-lease space – due to
     location and small format unit sizes (~2,000 SF)
   
   * No box risk – which have flat/low growth leases, high cost re-tenanting,
     co-tenancy, leasing restrictions, etc
   
   * Deep, broad, and increasing demand from service, necessity,
     convenience-driven tenants within the following industries:
     
     * F&B, medical, dental, vision, wellness, service (nail, hair, etc)

 * Acquired at a significant discount to grocery and replacement cost

 * Located in top/institutionally in-demand and high-growth markets

 * Market leading leasing rental spreads and NOI growth (2x grocery anchored)

 * At the lowest risk (cash flow, healthy tenants, great real estate at
   acquisition) and low capital intensity

 * Within the most fragmented sector within retail, often acquired from non-real
   estate focused, un-motivated ownership base
   
   

Meet the team
Todd Pleiman
CFO
tpleiman@lastmileinvestments.com•
M(513) 668-7476
O(513) 288-4440


Todd Pleiman is the Chief Financial Officer and a Partner of Last Mile
Investments (“LMI”).  Todd also oversees and leads LMI’s Operations and Asset
Management teams for our real estate portfolios.

 Todd has 20 years of real estate operations, capital markets and finance
experience – 17 of those years working exclusively in the retail real estate
industry. Prior to becoming a Partner of Last Mile Investments, Todd most
recently served as Vice President of Capital Markets for Phillips Edison & Co.,
an owner and operator of grocery anchored shopping centers, and was responsible
for creating, executing and maintaining the company’s capital markets
strategies. In his time in that role, Todd executed over $6 billion of financing
transactions and played a strategic role in two company mergers.



Sponsor Financials


--------------------------------------------------------------------------------


MARKET OVERVIEW



Highlights:

 * Westheimer Rd is one of, if not the top and most established retail corridor
   in the entire Houston MSA

 * Westheimer Rd has 60,000+ VPD, nearly 2x the average traffic count of top
   retail REIT portfolios

 * Well-positioned up on Westheimer Road with A+ visibility, only ~1.5 miles
   West of The Galleria

 * The Galleria is owned by Simon Property Group and is Graded A++ per
   GreenStreet, pulling nearly 10M visitors per year

 * In GreenStreet grading system, they use a TAP Score which measures the
   strength of demand of a trade area – this trade area scores 96/100

 * Top tier signage on Westheimer that is grandfathered in (that you could not
   get today with new construction)

 * Tremendous upside with Mark-to-Market opportunity:
   
   Rents in the corridor range from $35-55/sf today, with our existing rent roll
   averaging $25/sf
   
   Current Rent as a % of Market today is 60-70%

 * Tightly held corridor – not a lot of trades occur; held by families/private
   investors for a long time
   
   Demand is only getting stronger – institutional buyers looking to acquire
   smaller strip centers combined with being a first to market retail node for
   national/regional tenants
   
   SITE Centers acquired a competitive center across the street last year for a
   5.75% cap rate.
   
   Per local leasing intel, SITE Center's rents are currently mid-$30’s+.  There
   is one space for lease at this center today. Guidance from the agent leasing
   this center, is they are quoting mid $40’s and expect to expect to execute at
   $40+psf.



--------------------------------------------------------------------------------

5757 Westheimer Road, Houston, TX, 77057
Property StatusRefinancing
Loan TypeLight Bridge
TransactionRefinance
AssetRetail - Unanchored Center
Total Loan Amount$5.35MM
LTCUp to 54%
Project Costs$0
T12 NOI$611,258
Stabilized NOI$725,000
Stabilized Value$11MM
Estimated Value$9.5MM
Existing Debt$0
PassI'm interested
PassI'm interested
Contact Sponsor
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