Bagby Crossing - Waco, TX

BAGBY CROSSING WACO, TX

PRI C I N G & FI N A NC IA L ANALYS IS

B AG BY C R O SSING

Bagby Crossing 2324 Marketplace Dr Waco, TX 76711

OFFERING SUMMARY Price Cap Rate Net Operating Income

$6,305,000 6.69% $421,820

Price PSF

$395.89

Occupancy

100.00%

Year Built Gross Leasable Area Lot Size

2018 15,926 SF 2.23 Acres

F I N A N C I A L A N A LY S I S

2

PRI C I N G & FI N A NC IA L ANALYS IS

PROJECTED INCOME & EXPENSES Base Rent - Occupied Space

100%

GROSS POTENTIAL RENT

B AG BY C R O SSING

CURRENT

PSF

$433,543

$27.22

$433,543

$27.22

Expense Reimbursements

EXPENSES

CURRENT

PSF

Real Estate Taxes

$91,760

$5.76

Insurance

$4,737

$0.30

$1,574

$0.10

CAM

Real Estate Taxes

$91,733

$5.76

Electricity

Insurance

$4,776

$0.30

Water & Sewer

$10,465

$0.66

$24,046

$1.51

Grounds Maintenance

$6,300

$0.40

$5,101

$0.32

Parking Lot Sweeping

$3,968

$0.25

Total Expense Reimbursements

$125,656

$7.89

Water Backflow Inspection

$600

$0.04

EFFECTIVE GROSS REVENUE

$559,199

$35.11

Fire Alarm Inspection

$360

$0.02

Fire Alarm Monitoring

$620

$0.04

Irrigation System Maintenance

$195

$0.01

$24,082

$1.51

$16,800

$1.05

$137,379

$8.63

CAM Mgmt. Fee

Operating Expenses Real Estate Taxes

($91,760)

($5.76)

Insurance

($4,737)

($0.30)

($24,082)

($1.51)

Management Fee

($16,800)

($1.05)

Total Expenses

($137,379)

($8.63)

$421,820

$26.49

CAM Mgmt. Fee Total Recoverable Expenses Net Operating Income

3.00%

The analysis date for the Income & Expenses is 3/1/2021. This takes into consideration a 1-year hold from such date and any recent escalations within the following year.

Total CAM 3.00%

For Financing Options, Please Contact: Greg Holley | Managing Partner High St Capital (O) 469-998-7200 | (C) 714.514.2990 gholley@highstcapital.com

F I N A N C I A L A N A LY S I S

3

RE NT RO L L

Suite

B AG BY C R O SSING

Tenant

SQ FT

% of SQFT

Start

End

Annual Rent

PSF

Escalation Date

Escalation Amount

Options

Lease Type

100

CBD American Shaman

2332

14.64%

12/14/2017

12/14/2027

$65,296

$28.00

12/14/2022

$30.00

2x5

NNN

110

ZiZi Nail Lounge

1200

7.53%

12/1/2019

11/30/2024

$31,200

$26.00

12/1/2021

$27.00

2x3

NNN

115

The Joint

1037

6.51%

1/1/2020

12/31/2024

$24,888

$24.00

1/1/2023

$27.00

2x5

NNN

117

Hotworx

1708

10.72%

5/20/2020

5/31/2030

$50,459

$29.54

6/1/2025

$31.90

3x5

NNN

120

Smallcakes

1625

10.20%

11/19/2018

11/30/2025

$42,250

$26.00

12/1/2025

$28.60

3x5

NNN

200

Pending Lease

2224

13.96%

6/1/2021

5/31/2021

$57,824

$26.00

-

-

-

NNN

210

Cycle Bar

2600

16.33%

5/1/2019

3/23/2027

$70,200

$27.00

3/23/2022

$29.70

2x5

NNN

220

Baylor Scott & White

3200

20.09%

8/6/2020

8/31/2027

$88,000

$27.50

9/1/2021

$28.19

2x5

NNN

$430,117

$27.01

$27.01

Occupied 100.00% Vacant

0.00%

Total 100.00% The analysis date for the Income & Expenses is 3/1/2021. This takes into consideration a 1-year hold from such date and any recent escalations within the following year.

F I N A N C I A L A N A LY S I S

4

TE NA NT INF ORMAT I ON

B AG BY C R O SSING

Tenant

The Joint Chiropractic

Corporate/Franchise

Franchise

Locations

500+ Locations

Public/Private

Public (NASDAQ: JYNT)

Website

thejoint.com

Line of Business

The Joint Chiropractic is a nationwide network of chiropractors delivering quality, affordable and convenient chiropractic services to families. The Joint was originally founded in 1999 with a goal of transforming the traditional, often misunderstood concept of routine chiropractic care. The Joint now has more than 500 chiropractic offices and counting.

Tenant

Hotworx

Corporate/Franchise

Franchise

Locations

160+ Locations

Public/Private

Private

Website

hotworx.net

Line of Business

Hotworx is a virtually instructed exercise program created for users to experience the benefits of infrared heat absorption, while completing a 30-minute isometric workout or 15-min High Intensity Interval Training (HIIT) session. Founded in 2014, there are over 160 Hotworx locations in the United States.

Tenant

Smallcakes Cupcakery

Corporate/Franchise

Franchise

Locations

180+ Locations

Public/Private

Private

Website

smallcakescupcakery.com

Line of Business

Smallcakes Cupcakery is an American bakery chain that specializes in scratch-made cupcakes and frostings. Founded by Jeff Martin, Smallcakes’s menu includes seasonal and special flavors that are made in-house daily. Smallcakes has been featured on the Food Network’s “Cupcake Wars” and ABC’s talk show “The View,” leading to an increase in demand across the United States.

PROPERTY DESCRIPTION

5

TE NA NT INF ORMAT I ON

B AG BY C R O SSING

Tenant

CycleBar

Corporate/Franchise

Franchise

Locations

175+ Locations

Public/Private

Private

Website

cyclebar.com

Line of Business

CycleBar is an American indoor cycling franchise that offers low-impact/high-intensity cycling experience for all ages and body types. CycleBar is highlighted by its service, premium amenities and concert-inspired environment, helping patrons receive a full-body cardio workout. CycleBar is one of the largest network of indoor cycling studios in the U.S., with close to 200 studios open.

Tenant

Baylor Scott & White Health

Corporate/Franchise

Corporate

Locations

50 Hospitals; 178 primary care clinics; 507 specialty, subspecialty and multi-specialty clinics

Public/Private

Nonprofit

Website

bswhealth.com

Line of Business

Baylor Scott & White Health is the largest not-for-profit healthcare system in the state of Texas.

Baylor Scott & White Health includes 50 hospitals, 5,397 licensed beds, more than 1,000 patient care sites, close to 7,800 affiliated physicians, 48,000 employees and nearly $10 billion in total net operating revenue.

PROPERTY DESCRIPTION

6

I N VE S TMENT HI GHLI GHT S

• New Class “A” Construction

B AG BY C R O SSING

SNAPSHOT

• 100% Occupied, Long-Term NNN Leased Shopping Center • A cross the Street from Amazon’s New 700,000 Sq Ft Distribution Center, which Will Add over 1,000 Jobs in the Immediate Area • A djacent to Central Texas Marketplace — 900,000 Sq Ft of Class A Retail & Waco’s Most Traveled Shopping Center • S trategically Situated on the NW Corner of Interstate 35W & Texas State Highway 6

68,725

$67,579

• 7 5% of Traffic Entering/Leaving Central Texas Marketplace Passes Bagby Crossing

Estimated Vehicle Per Day

Average Household Income

16.6%

140,594

Population Growth 2010-2020

Population: 5 Mile Radius

• Internet-Resistant, Complementary Tenant Mix with Staggered Lease Turnover • Ability to Purchase a Pad Site that will Create Value Added Opportunity • Over 140,594 People in a 5-Mile Radius — Over 16% growth since 2010 • S urrounding National Tenants Include Cabela’s, Ross, Marshalls, Starbucks, Buffalo Wild Wings, Panda Express, Panera Bread, Old Navy, Gap, T-Mobile, Subway, Kohl’s, P.F. Chang’s, Logan’s Roadhouse, and Many More • Future Stability Ensured by High Growth Area Surrounded by Large Companies like Amazon, Baylor Scott White Regional Hospital, ZinkPower, Tractor Supply Distribution Center, Waco ISD Football Stadium, Caterpillar Logistics and Mars Wrigley Confectionery, Just to Name a Few

PROPERTY DESCRIPTION

7

ITI NTTHE L E NEWS

B AG BY C R O SSING

Tommy Witherspoon Oct 19, 2020

estate circles.

onfirming what has been called Waco’s worst-kept secret, local officials said Monday that Gov. Greg Abbott will be in Waco on Friday to announce that Amazon is building a 700,218-square-feet distribution center and warehouse in Waco’s industrial park.

Waco City Manager Bradley Ford confirmed Monday that the Seattle-based online retailing giant has bought land in Waco for the project. McLennan County Judge Scott Felton said the project would be a boon to the economy with up to 1,000 workers. The company has a starting wage of $15 an hour and benefits.

“We are very excited that Amazon chose Waco, and it kind of shows that we can handle a Fortune 500 and better company in this community,” Felton said. “We are elated. I think if people are hunting good jobs, this would be a good company to go to. I think this shows all our efforts in workforce training are paying off.”

Amazon spokesman Daniel Martin acknowledged in an email that the company has plans for Waco.

“Amazon is a great place to work with highly competitive pay, benefits from day-one, and training programs for in-demand jobs,” he said. “Amazon’s land purchase in Waco provides us with the flexibility to respond to the needs of our customers, leverage the talented local workforce and address Amazon’s future network needs. We look forward to announcing our plans with the city of Waco soon.”

Speculation has been rife since the Tribune-Herald first reported in July that BL Companies, which is closely associated with Amazon and other large corporations, secured a building permit to begin work at 200 Exchange Parkway. Workers were putting up the metal framework for a structure Monday after weeks of site preparation and infrastructure work.

The intended use for the building has remained a mystery, but Amazon’s name has surfaced as the project has been widely discussed in local real

An Abbott spokesman confirmed Monday that the governor will be in Waco on Friday to make an announcement and said additional details will be forthcoming later this week.

C

Amazon has been on a building binge in Texas this year as it cements its dominance in the online arena during the pandemic.

Amazon, founded in 1994, is a publicly traded company with 840,000 employees and $280.5 billion in annual revenue.

To view this article online, click here.

Proximity of Bagby Crossing to new Amazon distribution center

MARKET OVERVIEW

8

MA RK ET PL AC ED Lounge

nt

ar

Scott Baylor hite W

CycleB

Pendin

g Tena

kes

Smallca

Hotworx

t

The Join

&

CBD Am eri Shaman can

ZiZi Nail

S I T E PL A N B AG BY C R O SSING

AVAILABLE PAD SITE

±36,000 SQ FT

R

PROPERTY DESCRIPTION

9

A E R I AL MA P

,90

,72 5

VP D

114

68

8V

PD

B AG BY C R O SSING I

SITE

2 1

3 4 5

13

,10 7V

PD

Future Distribution Center

2

E

1 B

G A

B

Y

V A

Return Center

3 4 5 MARKET OVERVIEW

10

A E R I AL MA P

B AG BY C R O SSING I

BAYLOR UNIVERSITY

McLANE STADIUM

UNIVERSITY HIGH SCHOOL

4 5 1

6

2 3

G BA

1

BY E AV

68

V ,725

PD

2 3

13 7V ,10 PD

4 5 6 MARKET OVERVIEW

11

A E R I AL MA P

B AG BY C R O SSING I UN

IV

ER

SI

TY

DR PEPPER MUSEUM

WACO HIGH SCHOOL

PA

RK

McLANE STADIUM

S

D

R

TEXAS SPORTS HALL OF FAME BAYLOR UNIVERSITY

MAGNOLIA MARKET AT THE SILOS

TEXAS RANGER HALL OF FAME

EXTRACO EVENTS CENTER

VALLE Y

ASCENSION PROVIDENCE

M ILL S D R

BA G

B

Y

A V

E

RICHLAND MALL

UNIVERSITY HIGH SCHOOL SITE CENTRAL TEXAS MARKETPLACE

BAYLOR SCOTT & WHITE

MARKET OVERVIEW

12

LO C AL MA P

B AG BY C R O SSING I

MARKET OVERVIEW

13

REG IONA L MA P

B AG BY C R O SSING I

MARKET OVERVIEW

14

M A R KET S U MMARY

B AG BY C R O SSING

Waco, TX

OVERVIEW Waco is a city in central Texas and is the county seat of McLennan County. The city is situated along the Brazos River and I-35, halfway between Dallas and Austin. The city had a 2021 population estimate of 141,936, making it the 22nd-most populous city in the state of Texas. The Waco Metropolitan Statistical Area consists of McLennan and Falls Counties, which had a 2021 population estimate of 278,906.

Waco was founded in 1849 on the site of a Waco (Hueco) Indian village near Fort Fisher, a Texas Rangers outpost, in a farming and plantation area.

After the Civil War, Waco became a river-bridge crossing on cattle trails. Later its economy was based almost exclusively on cotton, and the coming of the railroad stimulated economic growth. World War II brought two large air-force installations (now closed) and the beginning of industrialization.

Waco still depends partly on crops and livestock, but manufacturing (including clothing, machinery, tires and glass) and service industries have broadened its economic base. Waco has become a unique tourist destination as well as an appealing place to live and do business because of its rich diversity, abundant

natural resources, convenient location and numerous amenities.

Waco is also home to Baylor University, an institution of higher learning with an enrollment of over 19,000 students. Baylor is the oldest continuously operating university in Texas and one of the first educational institutions west of the Mississippi River in the United States.

Downtown Waco is home to Magnolia Market, a shopping complex containing specialty stores, food trucks and event space, set in repurposed grain silos originally built in 1950 for the Brazos Valley Cotton Oil Company. The Magnolia Market, operated

by Chip and Joanna Gaines of the HGTV TV series Fixer Upper, saw over 1.6 million visitors in 2019.

Additionally, Waco is the site of the Cameron Park Zoo, the popular Texas Sports Hall of Fame, and the Texas Ranger Hall of Fame and Museum. Other notable attractions include the Dr Pepper Museum (where the soft drink was first bottled) and Baylor’s Mayborn Museum Complex, which includes a natural history museum and a historic village.

MARKET OVERVIEW

15

D E M OG RA PHIC STAT I ST I CS

B AG BY C R O SSING

1 Mile

3 Mile

5 Mile

Population

1 Mile

3 Mile

5 Mile

Households:

2010 Population

2,176

39,488

126,929

2010 Households

822

14,983

47,156

2020 Population

3,614

46,044

140,594

2020 Households

1,376

17,659

52,598

2025 Population Projection

4,011

49,011

148,518

2025 Household Projection

1,529

18,836

55,653

Annual Growth 2010-2020

6.60%

1.70%

1.10%

Annual Growth 2010-2020

5.90%

1.50%

1.00%

Annual Growth 2020-2025

2.20%

1.30%

1.10%

Annual Growth 2020-2025

2.20%

1.30%

1.20%

Median Age

32.6

33

31.6

Owner Occupied

835

9,244

27,757

Bachelor's Degree or Higher

24%

15%

22%

Renter Occupied

541

8,414

24,841

2

21

94

Avg Household Size

2.6

2.6

2.6

2

2

2

$31.4M

$360.6M

$1.1B

U.S. Armed Forces

Avg Household Vehicles

Population By Race

Total Consumer Spending

White

2,936

36,501

110,382

Black

388

6,996

21,440

American Indian/Alaskan Native

45

587

1,723

Avg Household Income

$67,579

$58,121

$61,147

Asian

150

785

3,677

Median Household Income

$52,557

$44,278

$43,912

Hawaiian & Pacific Islander

11

91

197

< $25,000

212

4,887

16,467

Two or More Races

85

1,084

3,175

$25,000 - 50,000

444

4,991

12,534

1,560

19,244

45,575

$50,000 - 75,000

252

3,122

8,127

$75,000 - 100,000

160

2,220

6,518

Hispanic Origin

Housing Median Home Value Median Year Built

Demographic data © CoStar 2020

Income

$138,333

$107,815

$145,138

$100,000 - 125,000

216

1,262

3,871

2004

1969

1974

$125,000 - 150,000

27

408

1,706

$150,000 - 200,000

38

397

1,923

$200,000+

30

371

1,453

MARKET OVERVIEW

16

CONFIDENTIALITY AGREEMENT The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from STRIVE and it should not be made available to any other person or entity without the written consent of STRIVE. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to STRIVE. This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. STRIVE has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, STRIVE has not verified, and will not verify, any of the information contained herein, nor has STRIVE conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT STRIVE AGENT FOR MORE DETAILS.

Commercial Disclaimer STRIVE hereby advises all prospective purchasers of commercial property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, STRIVE has not and will not verify any of this information, nor has STRIVE conducted any investigation regarding these matters. STRIVE makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a commercial property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. STRIVE expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a commercial property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any commercial property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenants and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenants history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term leases, including the likelihood of locating replacement tenants if any of the current tenants should default or abandon the property, and the lease terms that Buyer may be able to negotiate with any potential replacement tenants considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release STRIVE and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this commercial property.

Information About Brokerage Services

Texas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

TYPES OF REAL ESTATE LICENSE HOLDERS: • A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker.

• A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.

A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): • Put the interests of the client above all others, including the broker’s own interests; • Inform the client of any material information about the property or transaction received by the broker; • Answer the client’s questions and present any offer to or counter-offer from the client; and • Treat all parties to a real estate transaction honestly and fairly.

A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION: AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner’s agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner’s agent must perform the broker’s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer’s agent.

AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant’s agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer’s agent must perform the broker’s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by th e seller or seller’s agent.

AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. A broker who acts as an intermediary: • Must treat all parties to the transaction impartially and fairly; • May, with the parties’ written consent, appoint a different license holder associated with the broker to each party (owner and • buyer) to communicate with, provide opinions and advice to, and carry out the instructions of each party to the transaction.

• Must not, unless specifically authorized in writing to do so by the party, disclose: ӽ that the owner will accept a price less than the written asking price; ӽ that the buyer/tenant will pay a price greater than the price submitted in a written offer; and ӽ any confidential information or any other information that a party specifically instructs the broker in writing not to disclose, unless required to do so by law.

AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.

TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: • The broker’s duties and responsibilities to you, and your obligations under the representation agreement.

• Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.

LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker’s services. Please acknowledge receipt of this notice below and retain a copy for your records.

Regulated by the Texas Real Estate Commission

Information available at www.trec.texas.gov IABS 1-0

exclusively listed 469.844.8880

STRIVERE.COM