VERIZON CALL CENTER Investment Opportunity
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Investment Opportunity
VERIZON CALL CENTER
El Paso, Texas
Presented By:
LEO SCOTT &
CLAIBORNE GALLAGHER
RJL Real Estate Consultants
725 S. Mesa Hills, Building I, Suite I
El Paso, Texas 79912
tel. (915) 587.8310 fax (915) 587.8311
www.rjlrealestate.com
The information herein contained is provided solely to assist you in evaluating the property described. Although there is no reason to doubt the accuracy of this information, no representation or warranty,
either expressed or implied, is made as to the accuracy, completeness or adequacy of this information. All offerings are subject to prior sale, lease or withdrawal from the market without notice.
TABLE OF CONTENTS
• Disclosure/Confidentiality
• Property Summary
• Property Overview
• Investment Summary
• Income Statement
• Survey
• Area maps
• Aerial Photos
• Ground Photos
VERIZON CALL CENTER, EL PASO, TX
DISCLOSURE/CONFIDENTIALITY
This Offering Memorandum contains select information pertaining to Property located at 11950 Don Haskins Drive, in El Paso
Texas. It has been prepared by RJL Real Estate Consultants (RJL), and RJL has been hired to exclusively market the property on
behalf of the Seller. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective
purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the
purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to
any other person without the written consent of Seller or RJL. The material is based in part upon information supplied by the
Seller and in part upon financial information obtained by the Property sources it deems reliable. Seller, nor their officers,
employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this
Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto.
Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material
contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum, you
agree:
1) The Offering Memorandum and its contents are confidential;
2) You will hold it and treat it in the strictest of confidence; and
3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in
any fashion or manner detrimental to the interest of the Seller.
Seller and RJL expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase
the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to
purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed
and delivered.
A prospective purchaser's sole and exclusive rights with respect to this prospective transaction, the Property, or information
provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed
Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims
against Seller or RJL or any of their affiliates or any of their respective officers, directors, shareholders, owners, employees, or
agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.
VERIZON CALL CENTER, EL PASO, TX
PROPERTY SUMMARY
Address: 11950 Don Haskins Drive
El Paso, Texas 79936
Building Area: Approximately 50,000 Square Feet (single floor)
Land Area: Approximately 7.185 Acres
Year Built: 2006 with several recent renovations completed
by Tenant
Zoning: C-4 SC (Commercial)
Tax Parcel ID: V8399944900050
Purchase Price: $4,200,000
Parking Spaces: Approximately 400 spaces
Legal Description: A portion of lot 5, block 449, Vista Del Sol unit
one hundred sixty three, City of El Paso, El Paso
County, Texas
VERIZON CALL CENTER, EL PASO, TX
PROPERTY OVERVIEW The subject property is located at 11950 Don Haskins Drive in El Paso, Texas. The property is 100% leased to Alltel Communications Southwest Holdings, Inc, dba Verizon Wireless. The property was originally constructed in 2006 for Alltel Communications and Alltel was subsequently purchased by Verizon Wireless. As of December 31, 2010, the lease was assigned to Alltel Communications Southwest Holdings, Inc, dba Verizon Wireless. The property is located just east of Zaragosa Road (a major north/south arterial in El Paso's vibrant east trade area) and is at the corner of Don Haskins Drive and Pullman Drive. The building is approximately 50,000 square feet and is situated on roughly 7.185 acres of land. The building is single story. The subject is located in the Hillside Business Park (which is comprised of the Verizon property and an adjacent multi-tenant office facility). The two properties share reciprocal access rights, and signage, under a filed Declaration of Reciprocal Easements agreement in place between the two properties. The two properties DO NOT share parking, or any cost allocation (utilities separately metered, etc.). There is one other call center by the name of Telerx located at the Don Haskins/Pullman Drive intersection and it appears to be approximately 65,000 square feet. The current lease commenced on 9/1/2006 and is scheduled to expire on 8/31/2016. Verizon is currently paying $8.28 per square foot or $414,000 per year. The rent includes a tenant improvement/cash out commission amortization reimbursement to the Landlord of $3.38 per square foot so the actual Base rent is $4.90 per square foot or $245,000 per year. The $3.38 per square foot tenant reimbursement will be fully amortized and will be repaid on 8/31/2016, and will not be included in any option rent. The Landlord also collects a fifteen percent (15%) administration fee on the common area maintenance expenses and this amount was $5,781 in 2013 ($6,940 in 2012 and $6,103 in 2011). VERIZON CALL CENTER, EL PASO, TX
PROPERTY OVERVIEW (cont.) Verizon has three – five (5) year options to renew the lease based on the schedule below: The Tenant must provide the Landlord with written notice of its intention to renew and extend the lease at least six (6) months prior to the expiration of the lease. Tenant also has the right to extend the lease for one (1) six (6) month period by providing Landlord with a six month notice before the end of the expiring lease term and the rent will increase by ten percent (10%). In 2010, Verizon spent in excess of $1.2 Million Dollars to renovate their space, which included increasing the capacity of the HVAC system, new office areas, a new expanded data room, new employee cubicles, and upgrades to the security system. Verizon also recently spent roughly $650,000 to renovate and add a new café concept, a training room with partition walls, enclosed an outdoor patio area and added a game room, storage and a dining room. It should be noted, that upon expiration of the Lease, all improvements to the space become part of the premises (and remain), with the exception of the exterior generator and Tenant trade fixtures. These improvements add significant value to the property, which will likely be reflected in the future lease rates, once the current Lease expires or is terminated. VERIZON CALL CENTER, EL PASO, TX
INVESTMENT SUMMARY
Investment Summary
Verizon Call Center
11950 Don Haskins
El Paso, Texas
Current Lease Term Option # 1 Lease Term
9/1/2006 - 8/31/2016 9/1/2016 - 8/31/2021
Offering Price $4,200,000 $4,200,000
Square Footage 50,000 50,000
Price per Square Foot $84.00 $84.00
Base Rental Lease Rate Per Square Foot (Net) $4.90 $5.85
Annual Base Rent $245,000 $292,500
Plus Annual TI Reimbursement $169,000 0
Total Net Annual Rent (I ncdluding TI ) $414,000 $292,500
Cap Rate 9.86% 6.96%
Lease Dates 9/1/2006 - 8/31/2016 9/1/2016 - 8/31/2021
Note: Tenant pays a 15% Admin Fee on CAM Charges,
and the TI Reimbursement expires at the end of the current lease term, August 31 2016.
VERIZON CALL CENTER, EL PASO, TX
INCOME STATEMENT
Income Statement
Verizon Call Center
11950 Don Haskins
El Paso, Texas
2013 - Actual 2014 & 15 - Projected 2016- Proforma 2017- Proforma
Revenue
Base Rental I ncome $245,000 $245,000 $260,833 $292,500
TI Reimbursement $169,000 $169,000 $112,667 -
CAM 44,323 45,000 47,500 47,500
Taxes 163,727 174,000 180,000 180,000
I nsurance 7,733 8,028 9,000 9,000
Total Rev enue 629,783 641,028 610,000 529,000
Property Expenses
CAM 44,323 45,000 47,500 47,500
Taxes 163,727 174,000 180,000 180,000
I nsurance 7,733 8,028 9,000 9,000
Total Property Expenses 215,783 227,028 236,500 236,500
Net Operating Income $414,000 $414,000 $373,500 $292,500
(see Note 1) (see Note 1)
Note:
1) The 2016 and 2017 Proforma abov e are based on the renew al terms of the lease, and take into consideration of the fact
that the TI reimbusement currently being paid expires as of 8-31-2016
2) The CAM Admin Fee (15%) is not included in the NOI abov e
VERIZON CALL CENTER, EL PASO, TX
SURVEY VERIZON CALL CENTER, EL PASO, TX
VERIZON CALL CENTER, EL PASO, TX
VERIZON CALL CENTER, EL PASO, TX
VERIZON CALL CENTER, EL PASO, TX
VERIZON CALL CENTER, EL PASO, TX
EXTERIOR PHOTOS VERIZON CALL CENTER, EL PASO, TX
INTERIOR PHOTOS VERIZON CALL CENTER, EL PASO, TX
10-10-11
Approved by the Texas Real Estate Commission for Voluntary Use
Texas law requires all real estate licensees to give the following information about
brokerage services to prospective buyers, tenants, sellers and landlords.
Information About Brokerage Services
B
efore working with a real estate broker, you intermediary. The written consent must state who will
should know that the duties of a broker pay the broker and, in conspicuous bold or underlined
depend on whom the broker represents. If print, set forth the broker’s obligations as an
you are a prospective seller or landlord intermediary. The broker is required to treat each
(owner) or a prospective buyer or tenant (buyer), you party honestly and fairly and to comply with The
should know that the broker who lists the property for Texas Real Estate License Act. A broker who acts as
sale or lease is the owner’s agent. A broker who acts an intermediary in a transaction:
as a subagent represents the owner in cooperation
(1) shall treat all parties honestly;
with the listing broker. A broker who acts as a buyer’s
agent represents the buyer. A broker may act as an (2) may not disclose that the owner will accept a
intermediary between the parties if the parties price less that the asking price unless authorized in
consent in writing. A broker can assist you in locating writing to do so by the owner;
a property, preparing a contract or lease, or obtaining
(3) may not disclose that the buyer will pay a
financing without representing you. A broker is
price greater than the price submitted in a written offer
obligated by law to treat you honestly.
unless authorized in writing to do so by the buyer; and
IF THE BROKER REPRESENTS THE OWNER: (4) may not disclose any confidential information or
The broker becomes the owner’s agent by entering any information that a party specifically instructs the
into an agreement with the owner, usually through a broker in writing not to disclose unless authorized in
written - listing agreement, or by agreeing to act as a writing to disclose the information or required to do so by
subagent by accepting an offer of subagency from the The Texas Real Estate License Act or a court order or if
listing broker. A subagent may work in a different real the information materially relates to the condition of the
estate office. A listing broker or subagent can assist property.
the buyer but does not represent the buyer and
must place the interests of the owner first. The buyer With the parties’ consent, a broker acting as an
should not tell the owner’s agent anything the buyer intermediary between the parties may appoint a person
would not want the owner to know because an who is licensed under The Texas Real Estate License
owner’s agent must disclose to the owner any Act and associated with the broker to communicate
material information known to the agent. with and carry out instructions of one party and
another person who is licensed under that Act and
IF THE BROKER REPRESENTS THE BUYER: associated with the broker to communicate with and
The broker becomes the buyer’s agent by entering carry out instructions of the other party.
into an agreement to represent the buyer, usually
through a written buyer representation agreement. A If you choose to have a broker represent you,
buyer’s agent can assist the owner but does not you should enter into a written agreement with the
represent the owner and must place the interests of broker that clearly establishes the broker’s obligations
the buyer first. The owner should not tell a buyer’s and your obligations. The agreement should state
agent anything the owner would not want the buyer how and by whom the broker will be paid. You have
to know because a buyer’s agent must disclose to the the right to choose the type of representation, if any,
buyer any material information known to the agent. you wish to receive. Your payment of a fee to a broker
does not necessarily establish that the broker
IF THE BROKER ACTS AS AN INTERMEDIARY: represents you. If you have any questions regarding
A broker may act as an intermediary between the the duties and responsibilities of the broker, you
parties if the broker complies with The Texas Real should resolve those questions before proceeding.
Estate License Act. The broker must obtain the written
consent of each party to the transaction to act as an
Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records.
Buyer, Seller, Landlord or Tenant Date
Texas Real Estate Brokers and Salespersons are licensed and regulated by the Texas Real Estate Commission (TREC). If you have a question or complaint
regarding a real estate licensee, you should contact TREC at P.O. Box 12188, Austin, Texas 78711-2188 , 512-936-3000 (http://www.trec.texas.gov)
TREC No. OP-KYou can also read
