KPH Board Meeting - August 2024

Page 1


KENNINGTON PROPERTY HOLDINGS

Review of Minutes

BOARD MEETING AGENDA

August 29, 2024

PROPERTY MANAGEMENT & ACCOUNTING REPORTS

1. Income Statement

2. Balance Sheet

3. Budget Comparison Report

4. Accounts Receivable Aging Report

5. General Ledger

6. Bank Reconciliation

7. Rent Roll

8. Management Fee Calculation

ASSET MANAGEMENT REPORTS

1. KPH Cash Flow Summary

Building Capital Detail?

2. Cash Flow Projections Summary

3. Leasing Reports

Bradford RETAIL

Bradford FLEX

Bradford OFFICE

Thirty-Four Commercial

4. Construction/Tenant Improvements

5. Additional Reports

Litigation – N/A

JPMorgan Investment Summary

6. Old Business

Corporate Transparency Act

Property Tax Reserve Analysis

Treepoint Plaza UPDATE

2025 Budget UPDATE

7. New Business

Insurance Renewal Process UPDATE

Brandywine Place & Richardson Drive Plaza

Property Tour #2 and #3

Next Meeting – Thursday, September 26, 2024

Adjournment

KPH - AUGUST 2024

APPROVAL OF JULY 2024 MINUTES

PROPERTY MANAGEMENT & ACCOUNTING REPORTS

PROPERTY MANAGEMENT & ACCOUNTING REPORTS

INCOME STATEMENT

PROPERTY MANAGEMENT & ACCOUNTING REPORTS

BALANCE SHEET

MORTGAGE NOTES PAYABLES

Mortgage Payable - Alpha Plaza3,743,699.42

Mortgage Payable - Midway Center4,236,440.19

Mortgage Payable - Campbell6,310,516.55

Mortgage Payable - Placid2,699,404.52

Mortgage Payable - Research Center8,449,475.85

Mortgage Payable - Valley View Center 1 2 32,177,721.21

Mortgage Payable - ABC4,504,130.56

Mortgage Payable - Skyway3,220,988.52

Mortgage Payable - Jupiter North1,814,575.69

Mortgage Payable - Jupiter South5,231,080.83

Mortgage Payable - Waters Ridge Tech II3,247,610.87

Mortgage Payable - Waters Ridge Tech III7,312,821.89

Mortgage Payable - Tollway4,161,147.09

Dallas Foundation76,762.03

Kennington CCC Trust3,065,978.73

Kennington CCC Trust3,065,980.66 Clayton Kennington CCC Trust3,065,979.68

PROPERTY MANAGEMENT & ACCOUNTING REPORTS

KENNINGTON PROPERTY HOLDINGS Budget Comparison

PROPERTY MANAGEMENT & ACCOUNTING REPORTS

PROPERTY MANAGEMENT & ACCOUNTING REPORTS

GENERAL LEDGER

PROPERTY MANAGEMENT & ACCOUNTING REPORTS

6/27/2024

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Posted by: sdobbs on 8/1/2024

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Posted by: sdobbs on 8/1/2024

Posted by: sdobbs on 8/1/2024

PROPERTY MANAGEMENT & ACCOUNTING REPORTS

RENT ROLL

RENT ROLL

AUGUST 2024

KENNINGTON PROPERTY HOLDINGS

PROPERTY MANAGEMENT & ACCOUNTING REPORTS

MANAGEMENT FEE CALCULATION

Management Fee Register Summary MANAGEMENT

FEE

Fee Pool = All Fee Pools Fee Date = 07/01/2024

027 -Alpha Plaza 80,743.744.0000003,229.7507/01/2024

030 -Midway Center 60,614.404.0000002,424.5807/01/2024

035 -Campbell 1 105,163.274.0000004,206.5307/01/2024

037 -Placid 76,132.504.0000003,045.3007/01/2024

044 -Research Center 177,683.884.0000007,107.3607/01/2024

046 -Valley View Commerce C 78,269.784.0000003,130.7907/01/2024

049 -Alpha Business Center87,806.894.0000003,512.2807/01/2024

050 -Skyway Circle97,459.824.0000003,898.3907/01/2024

051 -Jupiter Center North45,615.474.0000001,824.6207/01/2024

052 -Jupiter Center South110,831.784.0000004,433.2707/01/2024

053 -Waters Ridge Tech 258,715.074.0000002,348.6007/01/2024

054 -Waters Ridge Tech 395,124.144.0000003,804.9707/01/2024

055 -Tollway86,816.204.0000003,472.6507/01/2024

Total1,160,976.9446,439.09

ASSET MANAGEMENT REPORTS

ASSET MANAGEMENT REPORTS

KPH CASH FLOW SUMMARY

KPH Cash Flow Projections Summary

[1] $12k, Redo Aussie Grind Floors; $10k Canterra Doors repair; projected spec suite improvements (will need to revise

projection to $50k [2] $13.5k Electrical repairs related to 2023 ReFi

[3] $20k Replace rooftop unit/replace heat exchanger

[4] $31k Warehouse conversion; $12k slab repairs; $14k hydrostatic test

[5] $15k Asphalt Repairs, $10k Window Caulking

[6] $170k Water Meter Vault (required by city);

[7] $15k Electrical and replaced fire panel

[8] $25k Lobby; $38k Spec Suites as of June; $37k common area doors; $7k additional; $150k in fire remediation

[9] Initial Projection for Roof in 2024;

ASSET MANAGEMENT REPORTS

CASH FLOW PROJECTIONS

SUMMARY

49 A pha Business Center 47,36644,62840,02452,39041,76261,29853,15153,15158,75958,85158,851

50Skyway 31,24024,62842,30339,13741,38265,16537,36037,36037,71937,71949,272

51Jupiter Center North 25,54923,27228,53328,51724,70026,55927,33127,33127,33127,33132,750

53Waters Ridge Tech II 34,71934,83039,54539,05942,84938,51343,660

54Waters Ridge Tech III

(1) NOI based on Argus for Projections / Actual based on Yardi cash flow statements.

(2)

(3)

(4)

(5) Cash drawn from 1031 account for North Dallas Tollway acquisition in 2022.

(6) Estimate / Adjustment and intercompany items.

(7) Ties to Balance Sheet and excludes investment cash and savings account, escrow balances and 1031 Exchange.

(8) Based on Balance Sheet

(9) Reserve for Property Taxes (below the line) based on budgeted property taxes - assumes this balance accrues

ASSET MANAGEMENT REPORTS

LEASING REPORTS

BRADFORD RETAIL

AL PH A PL AZA

MID WA Y CEN

LEASED

LEASED

SUITE 14476- 2,938 RSF A-ONE ENGRAVING 3/31/2028

SUITE 14462 - 1,875 RSF WALLPAPER PLACE 11/30/2027

LEASED

SUITE 14472/74- 5,042 RSF BALEY’S BRIDAL 1/31/2027

LEASED SUITE 14446 - 1,875 RSF EDIBLE ARRANGEMENTS 10/31/2027

SUITE 14468 - 1,450RSF AAT FINANCIAL 2/28/2025 as of 7/31/24

LEASED

SUITE 14444 - 1,950 RSF MIMI’S UPHOLSTERY 4/30/2025

LEASED

SUITE 14442 - 1,950 RSF OVERTON FAMILY JEWELS 11/30/2027

LEASED

SUITE 14440 - 1,950 RSF VERTICON CONSTRUCTION 4/30/2027

LEASED

SUITE 14438 - 1,950 RSF BREAKING BREW MEADERY 6/30/2024

LEASED

SUITE 14436 - 3,934 RSF WEG’S GUNS 10/31/2026

LEASED

SUITE 14430 - 3,885 RSF SIGNARAMA 8/31/2026

BRADFORD FLEX

AL PHA BU SINESS CEN TER

4300 & 4350 ALPHA ROAD, FARMERS BRANCH, TX 75244

LEASED

SUITE 2-210- 2,910 RSF TWO RIVERS VENTURES 1/31/2026

LEASED

SUITE 1-100- 6,944 RSF ADAPT STRENGTH 4/30/2025

LEASED

SUITE 2-200- 9,800 RSF ACCESS HEALTHCARE 9/30/2025

LEASED

SUITE 3-100- 3,581 RSF ALPHA LOCK SECURITY 6/30/2024

LEASED

SUITE 3-110- 3,262 RSF SHARI’S MANAGEMENT 9/30/2025

LEASED

SUITE 1-115- 5,981 RSF AIRWAY TECHNOLOGIES 8/31/2031

LEASED

LEASED

SUITE 2-230- 4,486 RSF PROTECTION NETWORKS 4/30/2027

LEASED

SUITE 3-120- 1/31/2024 RSF COMPRO COMPUTER 3/31/2029

LEASED

SUITE 3-130- 2,996 RSF ALLIED BIOSCIENCE 1/31/2025

SUITE 1-130- 4,313 RSF TWO RIVERS VENTURES 1/31/2026 as of 7/31/24

SKYWAY CIRCLE

3101-3117 SKYWAY CIRLCE, IRVING, TX 75038 Lorem ipsum

SUITE 3117- 18,287 RSF AP AMERICAS 8/31/2028 LEASED

SUITE 3113 - 11,425 RSF WELLER TRUCK PARTS, LLC 8/31/2029

SUITE 3109- 13,776 RSF EBERL CLAIM SERVICE, LLC 1/31/2025

SUITE 3101- 18,450 RSF AP AMERICAS 8/31/2028 as of 7/31/24

VALLEY VIE W

1861 VALLEY VIEW LANE, IRVING, TX 75061 LEASED SUITE 100 - 19,200 RSF TEXAS PROGRAMS FOR ALERNATIVE EDUCATION 8/31/2024

SUITE 150 - 9,864 RSF DISH NETWORK 7/31/2024

BRADFORD OFFICE

CCC - CAM PB ELL

1200/1210 CAMPBELL ROAD, RICHARDSON, TX 75081

LEASED

LEASED

SUITE 108 - 25,437 RSF PNC BANK 5/31/2030

AVAILABLE

SUITE 120 - 4,660 RSF

LEASED

SUITE 130 - 6,168 RSF SEEBOOST/EVEGLAZE LLC 1/31/2027

20262027 2028 2029 2030 2031 VACANT

SUITE 110 - 10,370 RSF BRAZEN ANIMATION 10/31/2030 as of 7/31/24

CCC - D IG I TA L

LEASED

LEASED

LEASED

LEASED

VACANT

SUITE 150 - 4,446 RSF

SUITE 140 - 2,993 RSF VERSAR, INC. 11/30/2027

SUITE 130 - 3,891 RSF SYNERGY SOLUTIONS 7/31/2026

SUITE 120 - 3,591 RSF PRELOAD, LLC 4/30/2026

SUITE 110 2,992 RSF DIRECT LINE GLOBAL 12/31/2027

LEASED

SUITE 100 - 4,465 RSF TXS INDUSTRIAL DESIGN 6/30/2026

LEASED

SUITE 100 - 13,858 RSF TALLEY-RIGGINS CONSTRUCTION 6/30/2028

AVAILABLE

SUITE 130 - 7,354 RSF

LEASED

SUITE 160 - 6,746 RSF ELECTION SYSTEMS & SOFTWARE 12/31/2026

20252026 2027 2028 2029 2030 VACANT LEASED SUITE 100 - 10,008 RSF RACKMOUNT 8/31/2027 LEASED SUITE 800- 12,632 RSF BRINKS 12/31/2026

RESEARCH CENTER

J

LEASED

SUITE 4100 - 43,680 RSF ENSEO 10/31/2027

LEASED

SUITE 2300

7,920 RSF VECTOR CONTROLS 5/31/2029

LEASED

SUITE 2100 7,345 RSF FORTRESS SOLU. 10/31/2029

LEASED

SUITE 1100 33,460 RSF GLOBAL IP 10/31/2030

LEASED

SUITE 3100 - 34,080 RSF FORTRESS SOLUTIONS 10/31/2029 as of 7/31/24

WATERS RIDGE II

1965 LAKEPOINTE DRIVE, LEWISEVILLE, TX 75057

LEASED

SUITE 200- 11,194 RSF

HOYA OPTICAL LABS 10/31/2025 as of 7/31/24

LEASED

SUITE 100- 22,152 RSF HORIZON HEALTH CORPORATION 7/31/2024

WATER S R IDG E II I

1825 LAKEWAY DRIVE, LEWISVILLE, TX 75057

LEASED

SUITE 200 OCCUSYSTEMS

10,386 RSF

LEASED

SUITE 400 - 15,814 RSF K12 VIRTUAL SCHOOLS 6/30/2025

VACANT

SUITE 300 - 5,783 RSF

LEASED

SUITE 500 - 12,344 RSF FORD MOTOR 11/30/2025

LEASED

SUITE 100

6,300 RSF

CARDINAL TRACKING

8/31/2024

2/28/2029 as of 7/31/24

LEASED

SUITE 700 - 19,389 RSF ALLEGIANCE TRUCKING 5/31/2025

VACANT

SUITE 800

5,071 RSF

THIRTY-FOUR

17 110 DALLAS PKWY

17110 D A LL AS PKWY

ASSET MANAGEMENT REPORTS

CONSTRUCTION/ TENANT IMPROVEMENTS

CONSTRUCTION PROJECTION

OVERALL SUMMARY

CONSTRUCTION PROJECTION

OVERALL SUMMARY

CONSTRUCTION PROJECTION

ALPHA PLAZA

Property: Parkway Plaza

Project: Vanilla Box

Suite: 110

GC: TBD

Cost: $32,312.63

Cost PSF: $13.34/SF

SF: 2,422

Status: Need approval

CONSTRUCTION PROJECTION

ALPHA PLAZA

Property: Alpha Plaza

Project: Vanilla Box

Add RR + HVAC

Suite: 120

GC: TBD

Cost: $55,965.25

Cost PSF: $23.55/SF

SF: 2,376

Status: Complete

CONSTRUCTION PROJECTION

ALPHA PLAZA

Property: Alpha Plaza

Project: Vanilla Box

Add RR + HVAC

Suite: 120

CONSTRUCTION PROJECTS

BENT TREE PLACE

Property: Bent Tree Place

Project: Spec Suite

Suite: 160

Cost: $84,770.52

Cost PSF: $42.73/SF

SF: 1,984

Status: Complete

CONSTRUCTION PROJECTS BENT TREE PLACE

CONSTRUCTION PROJECTS

BENT TREE PLACE

Property: Bent Tree Place

Project: Spec Suite

Suite: 205

Cost: $73,225.00

Cost PSF: $53.37/SF

SF: 1,372

Status: Complete

CONSTRUCTION PROJECTS

BENT TREE PLACE

WAYFINDER PACKAGE BENT TREE PLACE

WAYFINDER PACKAGE BENT TREE PLACE

WAYFINDER PACKAGE BENT TREE PLACE

CONSTRUCTION PROJECTS

BENT TREE PLACE

Property: Bent Tree Place

Project: Spec Suite

Suite: 212/215

Cost: $330,200.00

Cost PSF: $50.00/SF

SF: 6,604

Status: In Pricing

DOOR SCHEDULE

BENT TREE PLACE

DOOR SCHEDULE

BENT TREE PLACE

FCU REPLACEMENT

BENT TREE PLACE

ASSET MANAGEMENT REPORTS

1 LITIGATION – N/A 2 JPMORGAN INVESTMENT SUMMARY

ASSET MANAGEMENT REPORTS

OLD BUSINESS

CORPORATE TRANSPARENCY ACT

UPDATE:

1. Beneficial Ownership Information (“BOI”) reporting under CTA went into effect January 1, 2024, despite numerous calls for delaying the effective date of this new law.

2. The U.S. Dept. of Treasury and Financial Crimes Enforcement Network (FinCEN) did provide a reprieve for 2024 created companies to 90 calendar days instead of the initial 30day period to file its initial BOI report. This applies to new companies in 2024 only, and not for any years beyond 2024.

3. Any change in the initial reported information in the initial BOI or its beneficial owners, including change of addresses, requires the filing of a new BOI within 30 days of the changes.

4. There are still unresolved issues to be resolved. There are too many to list here.

5. CPAs are generally not filing these reports because of “unauthorized practice of law” concerns that have still not been resolved in many states.

KPH PROPERTY TAX RESERVE ANALYSIS

2025 BUDGET UPDATE

TIMELINE

1.

ASSET MANAGEMENT REPORTS

NEW BUSINESS

INSURANCE RENEWAL PROCESS

1. 24-25 Insurance Renewal for 52 Management, LP

(Renews November 1st, 2024)

• Lockton sent the submissions out to the insurance marketplace last week and have begun receiving initial feedback. They will send an updated marketing log to us in the next few days to update us on the status.

• The renewal meeting is scheduled for Monday, October 14th, at 1:00pm CT at our office. The Lockton team along with the Producers will all be in attendance that day.

2. Cyber Liability Policy Renewal

Renewal documents are currently with Quinton Skinner at Finite Consulting and stated they would be returned this week. The deadline is 09/02/24. Once received, I will email to David Adugna at Lockton. UPDATE:

PROPERTY TOUR #2 & #3

DISCUSSION

NEXT MEETING

THURSDAY, SEPTEMBER 26, 2024

9:00 AM - 10:00 AM

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