Tenant:
Encompass Services Corporation is the nation's largest provider of facilities
systems and services to the petrochemical, refinery, and construction industries. With annual revenues of approximately $4 billion, Encompass provides a
portfolio of electrical technologies, mechanical services, and cleaning
systems to commercial, industrial and residential customers nationwide.
Encompass is the leader in a $245-billion annual industry with steady historical
growth and multiple drivers for future growth. The Facilities Systems market
has a historic and projected compound annual growth rate of 6.5 to 8.0
percent per Encompass. Growing customer desire for outsourced services,
increasing complexity of facilities systems, a large and aging installed
base, energy efficiency requirements of new facilities, growing data and
network needs, and healthy construction activity nationwide suggest continued
industry growth.
The original
tenant, Gulf States, Inc., was sold to CCC/Build One organization in May
of 1998, which merged in February of 2000 with Group Maintenance Organization.
Encompass Services Inc., the formed entity, commenced operations thereafter. Encompass sold it's interest to TIC Holdings in 2003.
Property The subject site is located on the south side of Highway 332, approximately
one mile east of the Highway 332 and State Highway 227 (formerly S.H. 288)
interchange. The property consists of a 46,401 SF office/warehouse
building located on 3.75 acres. The site has 495.51 feet of frontage
along Highway 332, the main east/west highway between Brazoria and Surfside.
The property has landscaping in the form of grass, bushes, trees, and lighted
sidewalks. The front, east, and west sides of the building have concrete
parking areas and the rear of the site is presently covered with trees
and undergrowth.
Public electric and telephone
services are available and connected to the site. Telephone is underground
and electrical is above ground. Water and sewer are from a new state-of-the-art,
on-site system, which is more than adequate for the current use including
any desired expansion. No specific flood hazard factors are determined,
and the property is not located in the 100 year flood plain.
The subject site is improved
with a tilt-wall construction office and warehouse building on a concrete
slab creating total useable building area of 40,401 SF . The building
was constructed in 1976 and has 6,000 square feet of finished office space
upstairs and 6,000 square feet downstairs outfitted with acoustical tile
ceilings, 9' paneled walls, carpeting, and vinyl tile. The warehouse
has poured tilt-up concrete walls, concrete floors and a metal galvanized
roof deck that supports a built-up roof. There are four overhead
doors with approximatley 18' high openings located on the east and west
sideds of the building. The building eave is approximately 24', and
the second story mezzanine above the office is currently being used for
storage.
Additional above grade site
improvements include the aforementioned entry porch, other walkways, concrete
parking, exterior floodlights, utility poles, a 14.7' x 49.3' concrete
truck ramp on the east side of the building and chain link fencing with
barbed wire.
Lease
Gulf States, Inc.
is a typical tenant for the area, providing engineering construction services
to the local Petrochemical industry. The tenant’s lease structure
features a stepped rental rate, allowing for automatic increases to the
Property’s future net income. Gulf States, Inc. executed
a 10-year triple-net lease commencing on the first day of the month following
closing. Gulf States
will be responsible for ad valorem real property and personal property
taxes, building insurance coverage, common area maintenance - including
all mechanical systems, plumbing lines, electrical service, structure and
roof. Gulf States will not be responsible for roof replacement at the end
of the lease, so long as tenant continues to maintain the roof in a commercially
responsible manner. |
INVESTMENT
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