Lincoln Property Company,
Thank you for providing the information for Chipotle 3 Tenant Strip in Dallas, TX.
As you will see on page 4, we priced the asset at $4,970,000. We strongly believe the market will dictate pricing between $4,555,000 and $4,970,000. Our proposed commission structure is 4.5% on a co-brokered deal and 3.75% if a direct Buyer to Cannon or myself. We also included a few sales and currently under contract comps on page 7.
As a result of the current overall market – e.g., cap rates only moving 75-100 bps from historically low levels while interest rates have risen over 300 bps, low yields on other vehicles of investments, etc. – and the strengths of the asset – i.e., highly desirable infill core Class-A real estate, sitting as a pad site to Walmart Supercenter, situated on the cusp of Preston & Midway Hollow, and the solid tenant mix – all the stars are aligned to be a seller in today’s marketplace. Thus, we want to be as aggressive as possible without overshooting the market.
We are well suited to sell these assets because of our narrow focus and specialization. We do not manage or lease properties, we only represent sellers in the marketplace and have access to the largest pool of well-qualified buyers. As a result, we have sold over 333 properties worth $1.39 billion in consideration over the last 3 years, over 81% of those were in Texas.
I take a lot of pride in my work and commitment to clients. You have my commitment that this is a high priority assignment and I will work 80 hour weeks to get this done with Cannon and our entire team working beside us. I personally sold 42 shopping centers in Texas last year and have sold 13 retail properties year to date. We are currently negotiating a PSA on a very similar deal with Chipotle, Verizon & FedEx strip in McKinney for a 5.75% cap. On these transactions, we had an average of 5.1 offers on each asset. This is important to you, because our available inventory has shrunk and the disappointed buyers that missed out on the properties we have under contract/closed, are looking to place money in opportunities very similar to this asset. We feel confident that we can produce the same great results for you.
Since we believe compensation drives behavior, all 17 agents on our team get paid on every transaction. Thus, you will have our entire team of agents working diligently to sell your assets in collaboration. Unlike other firms, our interests automatically become aligned with you and as partners we will all be rowing in the same direction towards the same goal. Within our team, each agent at Summit covers a different geographical area in Texas which ensures we show your properties to every investor who owns or wants to own similar assets in Texas. We consistently maintain a proprietary database of each and every owner in Texas, and since more than 78% of the buyers of Texas retail properties are from Texas, we will leave no stone unturned. Not only do we cooperate internally, but we also will expose this asset to every broker in the country and globe that has clients for these types of assets. We are a vehicle to the marketplace and by exposing this portfolio to the entire marketplace we will have more offers to create a competitive auction environment to drive the price to the top of the market and have the highest
On average, our marketing process takes 30-45 days. During this time, we will mass expose the asset through various channels so everyone that has an interest in this type of product will see the offering and be thoroughly informed on the opportunity. The following is an example of our marketing process:
1 Day 1 Uploaded to Summit website 2,123+ new visitors a month, 18,420 page views per month (Google Analytics)
2 Week 1 Property is emailed out to investors through Constant Contact 38,400+ investors on email distribution list
3 Week 1-2 Call buyer hot list (current active buyers) 1,350+ active buyers & 1031-Exchange investors
4 Week 1 Presented at the Monday morning meeting to company 17 Summit Agents
5 Week 1-3 18 Agents call their respective clients & active buyers Avg 40+ calls per day or 3,600 per week
6 Week 1-3 Call Surrounding property owners in 1–3-mile radius and/or same zip code
7 Week 2-3 Call owners w similar assets in same geographic area (whole marketplace ie: DFW, Texas)
8 Week 2-3 Call buyers that bought similar assets in last 2-3 years (Comps throughout Texas & USA)
9 Week 3 Property is placed on external marketing websites Views range from 10,000-75,000 views and/or displayed in search results
9a Week 3 Loopnet Views range from 50-600+ views a day
9b Week 3 Uploaded to Crexi 11,800+ Agents on broker distribution list
10 Week 3 Property will be emailed out to Agents via Constant Contact
active agents list
Within that time, we will receive and review offers, qualify all potential buyers, arrange financing, if need be, provide feedback and guidance and ultimately allow you to make an educated decision on how and with whom to transact. After negotiating the offers and purchase & sale agreement, which will take approximately 1-2 weeks, we will go under contract and close 60 days later. In essence, we handle everything front to back and ensure a smooth and easy process all while allowing you to have complete control of the sale process. We look forward to discussing the opportunity in more detail with you.
Cannon Thornhill Partner Associate
