ODESSA, TEXAS OFFERING SUMMARY
ODESSA, TEXAS
OFFERING SUMMARY
INVESTMENT OVERVIEWHFF is pleased to exclusively offer Winwood Town Center (the “Property” or the “Center”), a 365,559 square-foot dual grocery-anchored center
located in Odessa, Texas. Currently 100% leased to an impressive line-up of tenants, including anchors HEB Grocery and Target. The property features
in-place leases 20.5% below market and two development opportunities for future NOI growth. Located in the heart of Odessa’s most desired retail
corridor, Winwood Town Center is strategically positioned at the intersection of E. 42nd Street (40,000 VPD) and N. Grandview Avenue (23,000 VPD).
The Property’s strong occupancy, exceptional tenant performance and location provide the foundation for sustained long-term value appreciation.
3801-3915 EAST 42ND STREETODESSA, TX 79762
97.3% OCCUPIED(100% LEASED) 365,559 SF BUILT IN 1987-2002
MAJOR TENANTSTenant SF % GLA Tenant Retention Nearest Location Credit Rating
Target 125,400 34.3% 14 Years 17 Miles A+
HEB 93,644 25.6% 17 Years 5 Miles -
Ross 30,187 8.3% 13 Years 18 Miles A-
dd’s DISCOUNTS 25,000 6.8% - 263 Miles A-
Office Depot 19,580 5.4% 20 Years 19 Miles B1
Michaels 19,294 5.3% 19 Years 18 Miles B1
INVESTMENT HIGHLIGHTSEXCEPTIONAL TENANCY
DUAL GROCERY ANCHORED
• Winwood Town Center presents investors a unique
opportunity to acquire a dual grocery-anchored
center leased to Target and HEB.
TENANT RETENTION
• Winwood Town Center’s tenancy features an average
occupancy of approximately 15 years.
• In 2011 HEB expanded their premises, adding an
additional 19,488 square feet, as a result of the
successful sales performance of the location and
explosive growth in the trade area population.
• Over 75% of current tenants have executed a renewal
at the Property.
NATIONAL TENANCY
• Over 97% of the center’s occupancy and 93% of the
base rental income stream is attributable to national
and regional tenants.
STABLE CASH FLOW WITH UPSIDE POTENTIAL
Despite being 100% leased to a mix of national
tenants, the Property features attractive enhancement
opportunities for investors to increase the Property’s
NOI as follows:
ADDITIONAL DEVELOPMENT OPPORTUNITIES
• 5,000 square foot pad opportunity along 42nd Street
• 7,000 square foot inline space opportunity
MARK-TO-MARKET OPPORTUNITIES
• In-place rates 20.5% below market
• Multiple suites have been recently backfilled with
national credit tenants at significant leasing spreads
Leasing Spread Analysis
Tenant Profile % Increase in Rental Rate
Junior Anchors 16%
Outparcels 56%
Inline Space 20%
Recent Leases
Previous Tenant New Tenant % Increase in Rental Rate
Hastings dd's DISCOUNTS 38%
Office Depot AutoZone 61%
BBVA BBVA (renewal) 39%
Big 5 Sports Confidential National Tenant LOI 10%
East 42nd St - 40,000 VPD
Grandview Ave - 23,000 VPD
Permian High School3,400 Students
Penbrook St- 2,700 VPD
Chase Office Building122,730 SF / 95.4% Leased
University of Texas Permian Basin+4,000 Students
Chimney Rock Shopping Center285,000 SF
Music City Mall850,000 SF
DYNAMIC LOCATION
DEMOGRAPHICS
• The Midland-Odessa statistical area was the fastest growing region
in the United States for the past five years with population growth
over 33% (U.S. Census Bureau) and is expected to grow over 12% from
2017-2021 (Nielson Demographics).
• Immediate consumer base features substantial disposable income
through the combination of:
• Average household income within a 10-mile radius of the Property
is approximately $81,000.
• Odessa features a cost of living index of 90
RETAIL CENTER OF GRAVITY
• Enhancing the Property’s regional draw, Winwood Town Center is
situated with exceptional visibility and ease-of-access onto I-20 and
direct access onto Highway 191, the main thoroughfare between
Midland and Odessa.
• Located at the epicenter of Odessa’s busiest intersections, 42nd Street
and Grandview Avenue, Winwood Town Center is exposed to over
65,000 vehicles per day. Additionally, the Property is strategically
positioned within the dense 42nd Street retail corridor, which
encompasses over 38% of Odessa’s retail square footage. The two
attributes combined afford Winwood Town Center a regional draw.
$45
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$55
$60
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Permian Basin Wattenberg Eagle Ford West Delaware Basin Bakken
BREAK EVEN POINT ($/BARREL)
LOWEST
110 BASIS POINT DECREASE50% OF ACTIVE RIGS IN TEXAS
46% OF U.S.’s $30.8B60% OF TEXAS CRUDE PRODUCTION16% OF U.S. CRUDE PRODUCTION
RANKED #3BREAK-EVEN POINT AMONG
IN UNEMPLOYMENT RATE IN LAST 3 MONTHS25% OF ACTIVE RIGS IN THE NATION
SPENT ON M&A IN U.S. EXPLORATION AND PRODUCTION SECTOR
IN JOB GROWTH (ODESSA)(2016) ALL U.S. DRILL SITES
PERMIAN BASIN OVERVIEWIn November 2016, the USGS discovered
20 billion barrels of oil in the Wolfcamp
Shale, almost 3x larger than North
Dakota’s Bakken Formation, making
the find the largest continuous oil and
gas deposit ever discovered in the
United States.
2323 Victory Avenue, Suite 1200
Dallas, TX 75219
Telephone: 214-265-0880
Facsimile: 214-265-9564
www.hfflp.com
©2017 Holliday Fenoglio Fowler, LP (“HFF”) and HFF Securities LP (“HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 23 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S.
commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, advisory services, structured finance, private equity, loan sales, and
commercial loan servicing.
Holliday Fenoglio Fowler, L.P. (“HFF”) has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF and we make no representations
or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions,
or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and
rely on those results. The information contained herein is subject to change.
1425,000 SF
30,187 SF
13A
17
13B 13C
19,294 SF93,644 SF
04
050607 0908 10 11 12
1310,000 SF
125,400 SF
15
19,580 SF
16B
16A
18Proposed7,000 SF
EAST 42ND STREET - 40,000 VPD
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PENBROOK STREET
FS10302GL
Fuel
National Tenant LOI
19Proposed5,000 SF
Occupied Proposed Leased
Suite Tenant SF
FS1 Jack in the Box 3,000Fuel H-E-B Fuel Station -GL Chick-Fil-A 4,54902 Taco Bell 2,15903 Compass Bank 2,40004 H-E-B 93,64405 Sally Beauty Supply 1,40006 BJ Luxury Nails 1,40007 The Cash Store 1,40008 Michael’s 19,29409 Variety Gift Shop 1,64510 Pro Snips 2,01011 Leslie’s Pool Supplies 3,80012 Eyemart Express 4,00013 Big 5 (Dark) 10,000
13A Ross 30,18713B Western Beverages 2,06313C Gamestop 2,00014 dd’s DISCOUNTS 25,00015 Target 125,400
16A AutoZone 8,62816B Office Depot 19,58017 Rapid Lube 2,00018 Proposed 7,00019 Proposed 5,000
ADDITIONAL INFORMATIONIf you have any questions or require additional information, please contact any
of the individuals below.
RYAN SHORE, Managing Director, [email protected] 469.232.1919
BARRY BROWN, Senior Managing Director, [email protected] 469.232.1968
JIM BATJER, Senior Managing Director, [email protected] 469.232.1970
PARKER SHERRILL, Analyst, [email protected] 469.232.1954
PHOEBE BRENT, Analyst, [email protected] 214.692.4714