Available $8,750,000 - Single Tenant
Marcus & Millichap has been retained to exclusively represent the seller in the sale of the Cinemark 12 single-tenant asset in Texas City, Texas (Houston – The Woodlands – Sugar Land Metropolitan Area MSA) located on Interstate 45 South. (Cinemark NYSE: CNK) is headquartered in Plano, Texas and is ranked the third largest in the United States with 539 theaters and 5,998 screens in the United States and Latin America as of June 2018. Cinemark has consistently ranked #1 and #2 in revenue box office sales in U.S. Markets as of 2017. They are the most geographically diverse circuit in Latin America with 200 theaters and 1,432 screens in 15 countries. The Cinemark 12 is the only theater within a 13 mile radius of Texas City and has been there for 28 years. Recent renewal for five years shows their commitment to the Mall of the Mainland redevelopment that is taking place. Year over year revenue has been on the rise for Cinemark Holdings Inc, with $2.99B in 2017, up 2.49% from $2.92B in 2016.
The Mall of the Mainland opened in 1991 and it has over 800,000 square feet. In 1991, it was anchored by Sears, Palais Royal, Cinemark 12, Dillard’s, Macy’s, and JCPenney. It closed in 2014 and was purchased in August 2015 by a local developer and their redevelopment plans included converting the Mall into an entertainment destination. New tenants include a 55,000 square foot Altitude Trampoline Park, the largest in the United States. It will also include a 12,000 square foot indoor race track in 2019. World Gym has taken over the Macy’s space, boasting the largest of all Texas locations, and includes a 50-yard indoor football field. Also in the Macy’s space is Tuscany Salons, a 54-unit hair salon studio, Plaza Royal Executive Office Suites with 28 offices, a natural food/juice bar, and a chiropractic office. The famous Booker T has moved his wrestling school into the mall and First Baptist Church has taken over the Dillard’s space and completely changed it into a beautiful megachurch. The Sears and Palais Royal still exist and thrive with the new owner. The existing JCPenney is being converted into a Class A 600-unit climate-controlled storage facility which will include a post office. Four restaurants are planned to finish out the mall.
A new luxury master-planned mixed-use community, Lago Mar by Land Tejas Co, is scheduled for development. It will include over 4,000 homes as well as Class A multifamily projects with plenty of upscale amenities such as a 35-acre amusement park. Texas City also has extensive park infrastructure, The Prairie Preserve is a 2,300-acre nature preserve on the shores of Moses Lake. Many other parks include Bay Street Park, Nessler Park, and Heritage Square, all allowing Texas City residents ample green space. Tanger Outlet Mall (NYSE: SKT) is a 356,000 square foot destination with over 84 outlet retailers. Buc-ee’s famous over sized convenience store is located on Interstate 45, which has 40 locations across Texas.
Texas City is in Galveston County, located on the southwest shoreline of Galveston Bay. Texas City is a very busy deepwater port on the Texas Gulf Coast as well as premier petroleum refining and petrochemical manufacturing center. This area benefits from two of the city’s major revenue drivers which are Mainland Medical Center and DOW Chemical Company. A few other major employers include Marathon Texas City Refinery and Valero Texas City Refinery, as well as Eastman Chemical. Texas City has the world’s largest manmade dike, The Texas City Dike is a five mile long manmade fishing pier.. The Department of Energy just granted Texas City a 20-year permit of Galveston Bay’s LNG project which is the largest industrial development in the country in over a decade. Texas City includes four elementary schools, two middle schools, one high school and also annexed LaMargue ISD and portions of Dickinson ISD in 2016. Texas City is also served by College of the Mainland. As of 2017, student enrollment in the 2-year college was 4,328 students with 62 percent enrolled in university paralleled degree programs and 37 percent in vocational programs.
- CAP Rate: 8.05%