Gemini
Plaza is located at 1150 Gemini in the Clear Lake submarket along Interstate-45
(Gulf Freeway). The Clear Lake area, is a thriving community and
the home of the Johnson Space Center and headquarters for the National
Aeronautics and Space Administration (NASA). 1150 Gemini is located
within a fifteen minute drive of Hobby Airport and just 25 miles from the
CBD.
Gemini
Plaza is an atrium-style, six-story Class “A” office building containing
158,627 net rentable square feet (SF). The property was developed
in 1983 by Griffin Juban Properties of Houston Texas. 1150 Gemini
is 100% occupied by a large national credit tenant, United Space Alliance,
LLC (USA). USA is a joint venture between Lockheed Martin and
Boeing (formerly Rockwell International) and is the primary contractor
for the United States Space Shuttle Program. USA commands approximately
38% of the shuttle funding.
A new
10 year lease with United Space Alliance (USA) was executed at the end
of June 2001. The terms that were agreed upon include a triple-net
rental rate of $9.25 PSF over a 10 year lease term with no tenant improvements
provided by the Landlord. Additionally, $750,000 in upgrades to building
systems will be completed, at the tenant’s expense, over the next three
years. Per the new lease terms, USA will be responsible for all operating
expenses, including maintenance, utilities, property taxes, and insurance.
The commencement of these new terms was June 1, 2001.
Gemini
is located in the southeast area of Houston which is comprised of Friendswood,
Kemah, League City, Nassau Bay, Seabrook, Pasadena, Clear Lake or Webster
Texas, Pasadena, Friendswood and Galveston communities. The thriving
area caters to major companies in the Aeronautical & Aerospace, Marine,
Petrochemical, and Retail/Tourism industries. According to the Clear
Lake Chamber of Commerce, from 1970 to 1990, the Clear Lake region sustained
a 4 percent annual population growth rate. Population growth for the next
five years is currently projected at 1.8% annually and the area has a diligent
and well-educated workforce with a median age of 27.5 compared to the national
average of 31.9.
The Gemini Plaza investment
combines the income stability and the safety of a national credit tenant USA, while
providing the value-added potential of building an additional tower onsite.
The surface lot currently comprises over six acres of land, which could be utilized
to build a second phase of Gemini Plaza. These factors combined with the well
diversified Houston economy help to make this a high
quality - low risk investment in a well placed and sought after market.
As of 4th
Quarter 2002, the Clear Lake submarket consists of 70 office buildings with over
4.3 million square feet of inventory. The submarket’s overall vacancy level
is 15.8% with a average rate of $14.56 PSF.
This
opportunity represents an excellent investment for the following reasons:
-
Opportunity
to purchase a triple net leased Class “A” building at $103 PSF which is
below the current replacement cost of approximately $150 PSF.
-
Newly
signed triple net lease where by Tenant is responsible for all maintenance
and operating expenses.
-
100% occupied
for 10 years by United Space Alliance which is co-owned by Lockheed Martin
Corp. and Boeing Co.
-
Located
in an economic region which has not been overbuilt and caters to a well
diversified and highly educated workforce.
In conclusion,
the Gemini Plaza investment combines the income stability and the safety
of a national credit tenant (USA), while providing the value-added potential
of building an additional tower onsite. CCI offers this excellent
investment opportunity based on location, physical condition, improving
market conditions, and expandability.
Please call us immediately if you
have any interest or to request a package.
CONTACT: Derek
George (713) 621-7300 or E-mail:
Dgeorge@capitalcommercial.com
