Bonham Center - Bonham, TX

BONHAM CENTER 2200-2235 N. Center Street B o n h a m , Te x a s 7 5 4 1 8

:: offering memorandum

Capital Markets | Investment Properties

TA B L E O F C O N T E N T S 1 Executive Summary....................................3 Investment Profile Investment Overview Highlights & Features

2 Market and Asset Overview....................6 Property Summary Location Map Aerial Site Plan Rent Comparables Demographics Market Summary

3 Financials....................................................16 Rent Roll Estimated Reimbursement Revenue Income & Expense Analysis

EXECUTIVE SUMMARY

BONHAM CENTER

INVESTMENT PROFILE PRICE:

$2,500,000

PRICE PSF:

$26

OCCUPANCY:

11.6%

GLA:

± 96,763 square feet

LAND AREA:

± 8.39 acres

YEAR BUILT:

1965

EXISTING DEBT:

Free and Clear

KEY TENANTS:

Nautilus Fitness Center, Bonham Jewelry

4

BONHAM CENTER

INVESTMENT OVERVIEW Pierson Retail Advisors is pleased to present Bonham Center, a 96,763 square foot neighborhood center positioned at the southwest corner of N. Center Street and US Highway 82 in the city of Bonham, Texas. The county seat of Fannin County, Bonham is located in North Texas approximately 68 miles northeast of Dallas.

The Property is currently only 11.6% occupied providing an investor a tremendous potential to increase cash flow through redevelopment or the lease-up of the remaining 88% of the asset.

HIGHLIGHTS & FEATURES Huge Upside Potential: The Property is currently 11.6% occupied leaving more than 85,000 square feet of vacant space for potential lease-up to increase revenue. The vacancies are comprised of two big box spaces totaling 65,627 square feet plus 19,892 square feet of inline space.

Priced Well-Below Replacement Cost: Bonham Center offers an investor an opportunity to acquire a well-situated shopping center at only $26 per square foot which is well below replacement cost.

Visibility: Located at the southwest corner of the lighted intersection of N. Center Street and US Highway 82, Bonham Center benefits from freeway frontage and access.

Area Traffic Generators: Bonham Center benefits from consumer traffic generated by nearby area retailers including Brookshire’s Food & Pharmacy, Family Dollar, True Value, McDonald’s and Exxon.

Demographics: The county seat of Fannin County, Bonham is located just 65 miles northeast of the Dallas Fort Worth Metroplex with a trade area expanding more than 10 miles. Currently, the residential population within five miles of the Property is 13,677 increasing to 19,178 residents within 10 miles. The average household incomes for these population bases are $54,895 and $57,205 within their respective three and five miles.

Convenient Highway Access: Bonham Center benefits from its close proximity to the east-west connector US 82 with more than 5,500 travelers daily. US 82 connects Bonham to US Highway 75, a major north-south artery stretching from Oklahoma to Dallas. US 75 carries more than 51,300 vehicles daily. Furthermore, N. Center Street carries nearly 7,000 vehicles a day.

5

BONHAM CENTER

MARKET & ASSET OVERVIEW

BONHAM CENTER

PROPERTY SUMMARY

ADDRESS:

Bonham Center 2200-2235 N. Center Street Bonham, TX 75418 Fannin County

SIGNAGE:

One pylon sign at the main entrance on N. Center Street

LEGAL DESCRIPTION:

A1041 S J SPOONAMORE, ACRES 8.393

INGRESS / EGRESS:

Four access points from N. Center Street

BUILDING AREA:

± 96,763 square feet

STRUCTURE:

Concrete tilt-wall with stone and concrete veneer

LAND AREA:

± 8.39 acres or ± 365,468 square feet

AGE OF ROOF:

Unknown

CONFIGURATION:

Two, single story buildings

ROOF COMMENTS:

Built-up tar and gravel roof system*

YEAR BUILT:

1965

HVAC:

Individual roof mounted HVAC units

PARKING:

± 440* surface spaces *Source: CoStar - to be confirmed

PARKING RATIO:

± 4.55 per 1,000 square feet

TRAFFIC COUNTS:

N. Center St: ± 6,951 vpd US Highway 82: ± 9,727 vpd US 75: ± 51,381 vpd (Source: CoStar)

* Data to be confirmed

7

BONHAM CENTER

LOCATION MAP Bonham Center

8

BONHAM CENTER

AERIAL

9

BONHAM CENTER

SITE PLAN

Not a Part

10

BONHAM CENTER

Tenant

Suite

Size

Available Nautilus Fitness Center Available Available Available Bonham Jewelry Available Available Available Available

2237 2235 2231 2229 2225 2227 2227A 2221 2219 2217

31,177 10,691 8,150 34,450 1,554 553 966 2,354 4,986 1,882

RENT COMPARABLES Property Bonham Center ï‚« 2200-2235 N. Center Street Bonham, TX

11

GLA

Yr Built/ Renovated Occupancy

Major Tenants

Available SF

Rental Rates

NNN

96,763

1965

11.6%

Nautilus Fitness Center, Boham Jewelry

85,519

$3.09 - $9.11

$0.78

1

The Shoppes at Bonham Point 1905-1913 N Hwy 121

21,000

2001

100.0%

Anytime Fitness, Rent-A-Center, Cash Store, Movie Gallery

0

$12.00 - $14.00

$2.00

2

Bonham Plaza 308 W. Sam Rayburn Dr.

7,200

2005

26.0%

H&R Block

5,330

$8.00 - $9.25

$2.51

BONHAM CENTER

RENT COMPARABLES

Bonham Center 1

Shoppes at Bonham Point

2

Bonham Plaza

1

2

12

BONHAM CENTER

DEMOGRAPHICS Radius

1 Mile

3 Mile

5 Mile

2,507 2,515 2,521 -0.32% -0.24% 226

11,150 11,141 10,991 0.08% 1.36% 1,787

13,728 13,677 13,292 0.37% 2.90% 1,958

2,273 118 40 25 0 60 0

9,170 1,540 132 75 4 220 1

11,582 1,564 169 84 5 274 2

1,032 1,036 1,035 -0.39% 0.10% 688 348 $55,679 $46,882

3,366 3,362 3,293 0.12% 2.10% 1,964 1,398 $49,014 $35,069

4,411 4,392 4,240 0.43% 3.58% 2,846 1,546 $54,895 $40,387

228 342 170 144 101 48 1 0

1,236 964 443 378 166 95 24 54

1,423 1,251 588 576 226 146 87 94

Population: 2021 Projection 2016 Estimate 2010 Census Growth 2016-2021 Growth 2010-2016 2016 Population Hispanic Origin

2016 Population by Race: White Black Am. Indian & Alaskan Asian Hawaiian & Pacific Island Other U.S. Armed Forces

Households: 2021 Projection 2016 Estimate 2010 Census Growth 2016 - 2021 Growth 2010 - 2016 Owner Occupied Renter Occupied 2016 Avg Household Income 2016 Med Household Income

2016 Households by Household Inc: <$25,000 $25,000 - $50,000 $50,000 - $75,000 $75,000 - $100,000 $100,000 - $125,000 $125,000 - $150,000 $150,000 - $200,000 $200,000+

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BONHAM CENTER

MARKET SUMMARY BONHAM Bohnam, Texas was founded in 1837, and it is located 12 miles south of Oklahoma and 68 miles northeast of the Dallas Forth Worth Metroplex. In 2015, the estimated population in Bohnam was 10,079. Founded by Bailey Inglish, Bohnam is the home of Texas legislator, congressman, and longtime speaker of the United States House of Representatives Sam Rayburn. Fort Inglish Park and the Sam Rayburn House Museum are among a few of the historical attractions in the city. Bohnam was originally named Bois D’Arc, but in 1845 the Congress of the Republic of Texas renamed it Bohnam in honor of the late James Butler Bohnam, who fought in the Battle of the Alamo.

DALLAS/FORTH WORTH OVERVIEW Based on its performance (and their expected performance) in three primary areas: investment, development, and home building, Dallas-Fort Worth ranked #1 in Urban Land Institute’s top U.S. real estate markets to watch in 2016. The Dallas/Fort Worth Metroplex, a North Texas region, is comprised of 12 counties and over 150 municipalities, including Dallas and Fort Worth. The fourth largest metropolitan area in the United States, the DFW Metroplex encompasses approximately 9,286 square miles with a population of more than 6.9 million people.

Dallas-Fort Worth was one of the fastest growing metropolitan areas in the nation from 2000 to 2015, adding more than 1.8 million people for a 35% growth rate.

Currently the Metroplex adds a new person every 4 minutes and it is projected by the year 2040 as many as 10.5 million people will be living in DFW and employment will reach more than 6.6 million people. With the largest, most educated workforce in the state of Texas, totaling three million people, DFW leads the state in public university and community college students (442,000). The largest of the major universities within the area are the University of North Texas (37,175), the University of Texas at Arlington (34,870) and the University of Texas at Dallas (24,554).

In 2014, Brooking Institute ranked Dallas/Fort Worth #3 in the nation for the metropolitan area’s “Overall Economic Performance” due to its impressive job growth, low unemployment, high gross domestic product and healthy home prices

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BONHAM CENTER

through the recession and recovery. Furthermore, Dallas/Fort Worth accounts for one-third of the state’s Gross Domestic Product and approaches $60 billion in annual direct imports and exports. The Metroplex is currently the fifth-largest global exporter in the country and largest regional exporter to Canada, Mexico and China. The area has benefited from a sustained period of economic and population expansion over the past decade as local companies increase their business capacity and others relocate to this desirable, central U.S. location.

JOB GROWTH: CONTINUES TO RISE Dallas/Fort Worth continues to outpace the nation in job growth over the short and long term due to its central location, pro-business environment and strong economy. Between 2005 and 2015 DFW added 621,278 new jobs for an impressive 22% growth rate, making DFW among the leading metros in the nation.

Furthermore, Careerbuilder.com ranked Dallas/Fort Worth first among the nation’s ten largest MSA’s for job growth between 2014 and 2015 adding 112,829 jobs for a 3.4% growth rate, well above the national rate of 2%. As of December 2015, the Dallas/Fort Worth had an unemployment rate of 4.0% below the national rate of 5.0%.

DALLAS/FORT WORTH: A DESIRABLE CORPORATE LOCATION Nationally recognized as one of the best markets for business, Dallas/Fort Worth leads the state in the number of firms who made their way into the region in 2014.

Since 2010, DFW has had 106 companies expand or relocate to the Metroplex, occupying nearly 12.5 million square feet. In 2014 alone, nearly 50 companies expanded or relocated to DFW. This number will continue to increase as the Dallas Regional Chamber announced plans to spend $2.5 million a year for the next five years on corporate recruiting. Over the last few years, the most notable announcements of companies moving to DFW include: Toyota North American headquarters, Amazon distribution center, Humana, Motorola, USAA, Omnitracs headquarters, Active Network, and Associa Inc. Dallas/Fort Worth has the fourthhighest number of corporate headquarters in the country hosting 21 Fortune 500 companies. Additionally, DFW is home to five Global 500 company headquarters, 40 Fortune 1000 headquarters and 11 of Forbes Top Private Companies.

ADVANTAGES IN TRANSPORTATION AND INFRASTRUCTURE Centrally located and easily accessible, Dallas/Fort Worth has an exceptional infrastructure of highways, interstates, railways, airports as well as public transportation systems. These infrastructures coupled with the DFW International Airport draw businesses and corporations affording them a competitive advantage nationally and internationally.

Dallas/Fort Worth International Airport is the third-busiest airport in overall operations and the ninth-busiest airport in the world in annual passenger counts hosting over 64.1 million travelers in 2015. The DFW International Airport has a $37 billion annual economic impact for the DFW region while supporting more than 228,000 jobs.

Dallas is also home to Dallas Love Field, serving both commercial and corporate users transporting more than 8.5 million passengers annually. Serving as the corporate headquarters for Southwest Airlines, Dallas Love Field is a premier close-in airport as itâ&#x20AC;&#x2122;s located in the heart of Dallas just seven miles northwest of downtown central business district.

Dallas also has an extensive modern public transit service called Dallas Area Rapid Transit (DART) which covers 700 square miles in Dallas and 12 surrounding suburban communities, serving more than 111.8 million passengers annually. In conjunction with DART Rail, Trinity Railway Express (TRE) and bus services, DART moves more than 360,000 passengers each day across the Metroplex. In terms of infrastructure, DFW is served by six interstates, seven U.S. highways and numerous state highways.

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BONHAM CENTER

FINANCIALS

BONHAM CENTER

Bonham Center

RENT ROLL

Rent Roll %

Lease Dates Start End

Tenant

Suite

GLA

Available

2237

31,177

32.22%

Nautilus Fitness Center

2235

10,691

11.05% 02/09 MTM

Available

2231

8,150

8.42%

-

Available

2229

34,450

35.60%

Available

2225

1,554

1.61%

Bonham Jewelry

2227

553

0.57% 05/96 MTM

Available

2227A

966

1.00%

-

Available

2221

2,354

2.43%

Available

2219

4,986

Available

2217

1,882

Total Revenue

% of Rev

$0

$0.00

$0

0.00%

$33,000

$2,750

$3.09

$8,286

$0.78

$41,286

88.30%

-

$0

$0

$0.00

$0

$0.00

$0

0.00%

-

-

$0

$0

$0.00

$0

$0.00

$0

0.00%

-

-

$0

$0

$0.00

$0

$0.00

$0

0.00%

$5,040

$420

$9.11

$429

$0.78

$5,469

11.70%

-

$0

$0

$0.00

$0

$0.00

$0

0.00%

-

-

$0

$0

$0.00

$0

$0.00

$0

0.00%

5.15%

-

-

$0

$0

$0.00

$0

$0.00

$0

0.00%

1.94%

-

-

$0

$0

$0.00

$0

$0.00

$0

0.00%

$46,755

100.00%

100%

Occupied

2 11,244

11.6%

Available

8 85,519

88.4%

Total Avg Rent / GLA

3.38 11,244

100.0%

[1] Static analysis information obtained from Owner Rent Roll

BONHAM CENTER

Recoveries Annual PSF

$0.00

Notes:

17

PSF

$0

10 96,763

-

Minimum Rent Monthly

$0

Total Count / GLA

-

Annual

Totals

$38,040

$8,715

Bonham Center

ESTIMATED REIMBURSEMENT REVENUE

Estimated Reimbursement Revenue Insurance Monthly PSF

Real Estate Taxes Monthly PSF

Total Recovery Monthly PSF

GLA

Available

2237

31,177

32.22%

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

Nautilus Fitness Center

2235

10,691

11.05%

$180

$0.20

$0

$0.00

$384

$0.43

$127

$0.14

$691

$0.78

Available

2231

8,150

8.42%

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

Available

2229

34,450

35.60%

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

Available

2225

1,554

1.61%

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

Bonham Jewelry

2227

553

0.57%

$9

$0.20

$0

$0.00

$20

$0.43

$7

$0.14

$36

$0.78

Available

2227A

966

1.00%

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

Available

2221

2,354

2.43%

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

Available

2219

4,986

5.15%

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

Available

2217

1,882

1.94%

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

96,763

100%

$189

Notes: Analysis assumes tenants pay their pro rata share of CAM, Insurance, and RE Taxes.

18

Management Fee Monthly PSF

Suite

Totals

%

CAM Monthly PSF

Tenant

BONHAM CENTER

$0

$403

$134

$726

INCOME & EXPENSE ANALYSIS

Income and Expense Analysis [1] In-place Pro-forma

% of EGR

PSF

INCOME Base Rent Percentage Rent Total Rental Revenue Expense Reimbursements CAM Recoveries Management Fee Recoveries Insurance Recoveries Real Estate Tax Recoveries Total Expense Reimbursements Effective Gross Revenue (EGR) OPERATING EXPENSES Common Area Maintenance JenCon Sweeping Landscaping (Yard) Fire Alarm Monitoring TXU Verizon-Fire Alarm Total Common Area Maintenance Management Fee Total Insurance Total Real Estate Taxes Total Recoverable Expenses Total Non-Recoverable Expenses Total Operating Expenses Net Operating Income Notes: [1] Expense are based on 2015 actual results; RE Taxes per 2015 assessed value

19

BONHAM CENTER

$38,040 $0 $38,040

$0.39 $0.00 $0.39

81.4% 0.0% 81.4%

$2,269 $0 $4,842 $1,604 $8,715 $46,755

$0.02 $0.00 $0.05 $0.02 $0.09 $0.48

4.9% 0.0% 10.4% 3.4% 18.6% 100.0%

$4,339 $3,250 $1,516 $9,566 $857 $19,527 $0 $41,665

$0.04 $0.03 $0.02 $0.10 $0.01 $0.20 $0.00 $0.43

9.3% 7.0% 3.2% 20.5% 1.8% 41.8% 0.0% 89.1%

$13,808

$0.14

29.5%

$75,000 $0 $75,000 ($28,245)

$0.78 $0.00 $0.78 ($0.29)

160.4% 0.0% 160.4% -60.4%

For more information, please contact: : : Jennifer Pierson

: : Beth Pierson

President and CEO

Vice President Operations

: : Debora Haught Client Services Director

: : Will Meachum Business Development

214-354-6820 C

214-855-2951 O

214-855-2959 O

214-540-0524 O

jp@PiersonRetailAdvisors.com

214-208-4545 C

Debora@PiersonRetailAdvisors.com

Will@PiersonRetailAdvisors.com

Beth@PiersonRetailAdvisors.com

: : Ron Sweedyk

: : Nicole Maser

Financial Analyst 214-855-2954 O Ron@PiersonRetailAdvisors.com

Senior Analyst

: : Reena Rana

Graphic Designer

: : Kasey Haught Comps Analyst

214-855-2954 O

214-855-2954 O

214-855-2954 O

Nicole@PiersonRetailAdvisors.com

Reena@PiersonRetailAdvisors.com

Kasey@PiersonRetailAdvisors.com

Retail Investment Sales This is a confidential Offering Memorandum has been prepared by Pierson Retail Advisors, Inc. and is intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.

This Offering Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the “Owner”), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and Pierson Retail Advisors, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Offering Memorandum, certain documents, including leases and other materials, are described in summary form.

These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Offering Memorandum in any manner.

Neither the Owner or Pierson Retail Advisors, Inc, nor any representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.

Capital Markets | Investment Properties

The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/ or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.

By receipt of this Offering Memorandum, you agree that this Offering Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Offering Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or Pierson Retail Advisors, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or Pierson Retail Advisors, Inc. If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to Pierson Retail Advisors, Inc. © 2016 Pierson Retail Advisors, Inc. The information contained in this document has been obtained from sources believed reliable. While Pierson Retail Advisors, Inc. does not doubt its accuracy, Pierson Retail Advisors, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.