DAR PROPERTIES PORTFOLIO
PROPOSED STRATEGY
Portfolio or individual SaleS:
We strongly believe taking the portfolio to market as a portfolio and also offering on an individual basis is in the best interest of the ownership. Rather than predetermining certain smaller portfolios within the entire DAR portfolio, its best to allow the market and/or the investor pool to ultimately determine how the portfolio will be sold. Knowing the #1 goal of the DAR ownership is to maximize profit, the portfolio most likely will be sold in individual pieces; the sum of the parts being greater than the whole. However, we don’t want to deny an institution or a high net worth private investor the right to buy the entire portfolio, hence we will offer and address both avenues: both as a portfolio and on an individual basis. As highlighted in the pricing analysis, we recommend taking the entire portfolio to market at $80,050,000. Conversely, as a portfolio value, the capitalization rate/pricing would be approximately 100 basis points lower or $68-69 million. So again, if the goal is to maximize profit, we recommend selling each asset individually. Why? There are many reasons, but the most prevalent is the average property value is $4 million - a perfect dollar value for the largest pool of investors, 1031-exchange buyers. They are the most aggressive buyers and plentiful in the $3-5 million range. Buying in bulk typically requires a discount, and smaller transactions don’t necessarily require an equity raise or financing, and is therefore less affected by interest rate hikes or return thresholds.
timeline:
The process takes 4-5 months on average, from start of marketing to closing the transaction. Upon approval of the marketing package(s), we mass expose the assets through various channels which takes approximately 45-60 days. 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 DAR to make an educated decision on how and with whom to transact. After negotiating the offers and purchase & sale agreements, which will take approximately 2-3 weeks, we will go under contract and close 60 days later, thus a total of 120-150 days.
3% fee on individual asset sale basis
1% fee on one transaction for the entire portfolio
WHY US?
• Jason has ownership interest in several of the properties, thus no other agent has more incentive to maximize profit
• Trust - Personal relationship with Sam and other DAR members, therefore our interest is aligned with the partnership to maximize value and do the right thing
• Intimate knowledge of the entire portfolio. Sold a majority of the properties to DAR and have all due diligence materials to truly understand each individual asset. As a result, STRIVE will create value by scrutinizing and increasing the NOI
• Help negotiate several leases and buyouts to the advantage of DAR – First Community Bank, Hooters, & Verizon
• Sold 123 Christian Brothers and have 7 others agreed upon or currently under contract. With direct access to the CEO & CFO of the company – already obtained financial information that will assist and add value to the sale. Additionally, because Jason has sold virtually all of them and has several others listed we possess a source of buyers and lenders to help facilitate the transaction at the top of the market.
• We are selling the property adjacent to Kirby’s Steakhouse and currently have 3 offers. We have an inherent buyer pool for properties in the immediate area
• We have sold 7 Little Sunshine’s Playhouses – direct access to CEO & CFO and a built-in buyer pool. Additionally, we have sold over 25 preschools and understand that property segment
• Jason & Jennifer have more than 35 years of experience, have personally been involved in and sold over 782 properties valued at close to $3 Billion, of which 469 are STNL – direct correlation to the DAR portfolio. We understand the market, serve our clients, and produce results!
• We eliminate risk – highly qualify and interview each buyer to ensure the investor has the ability and funds to close the transaction. Whether it’s an individual transaction or a portfolio sale we will control the whole process with a hands-on approach
• Collaborative effort & team approach – 1 team, 1 database. When you hire us you don’t get one person selling your asset, but rather 23 people rowing in the same direction to achieve the same goal, to sell your asset. Everyone within the firm is incentivize to sell the portfolio because everyone shares in the commission. Our team’s goal is aligned with the client at all times. Each agent is responsible for maintaining a geographical area and bringing buyers to the opportunity. Because 50% of the buyers of single tenant properties come from Texas, (2017 single tenant sales - Costar) we have more access to the most probable buyers than any other source.
• Specialization - Our team, STRIVE, deals exclusively in retail investment sales in Texas; as a result of this standard, our team closes more retail transactions, attains more value for our clientele, and has the most extensive database of qualified buyers for Texas based retail than any other brokerage firm or individual in the nation – period.
• Proprietary database consisting of every single retail property in the state of Texas and each of their respective owners. Unlike most firms, this is a central database where all 23 STRIVE members collectively share information and continually update data. With over 63,000 investors and agents, all of which specifically either do and/or want to do business in Texas, we proactively canvass the Texas market with an unwavering commitment to our Sellers. We link buyers to the opportunity through cooperation and sharing of information and fees. We leave no stone unturned in an effort to add value for our clients.
• Our philosophy is aligned with your interests: More Brokers & Investors = More Offers = More Competition = Higher Price & Probability to Close.
Pertinent info
• Christian Brothers Automotive - Sold 123 Christian Brothers and have 7 others agreed to or currently under contract. With direct access to the CEO & CFO of the company. Additionally, because Jason has sold virtually all of them and have several others listed we possess a source of buyers and lenders to help facilitate the transaction at the top of the market.
• Kirby’s Steakhouse - We are selling the property adjacent to Kirby’s Steakhouse and currently have 3 offers. We have an inherent buyer pool for properties in the area.
• Cash America - We have sold 8 or so properties in the immediate area - more than any other agent in the marketplace.
• BlueWave Express Wash - to our knowledge, only 2 agents have sold these. One is STRIVE.
• Little Sunshine’s Playhouse - We have sold 7 and have direct access to the CEO and CFO to help obtain pertinent information to facilitate the sale. Additionally, we have sold over 25 preschools and understand that property segment.
• Hooters & Verizon - We helped negotiate the terms of the lease and have intimate knowledge of rent and negotiations
• Fireside Pies & Winewood - Sold all 4 restaurants in the development and understand the development, HOA and the restaurants. With single member entities guarantying the lease, Jason has a personal relationships with the operators of all the restaurants in the development and is able to obtain information to assist and facilitate the sale.
• Car Spa - Jason is the only agent to sell these and knows the CEO & president of the company, a Boston guy
SamPle of Single tenant SaleS
Jason Vitorino
Jason Vitorino, Managing Parter at STRIVE, focuses exclusively on retail investment sales, including both singletenant and multi-tenant properties throughout Texas and the Southwest. Jason has closed 715+ transactions valued nearly $3 Billion in sales, consistently ranking him among the top agents in Texas and throughout the country.
Previously a Senior Vice President for a publicly traded firm, Jason consistently ranked in the top 1% company wide. During his tenure he earned 7 Chairman Club Awards, 12 National Achievement Awards and 13 consecutive Sales Recognition Awards.
Jason grew up in Boston and graduated from the University of Maine with a Bachelor of Business Administration, with an emphasis in Finance. In 1999, he was the assistant captain of the NCAA Division 1 National Champion UMaine hockey team. Jason and his wife Alisa enjoy traveling, trying new restaurants, and dining with friends. They reside in Plano, TX and have three children; two young daughters and a son: Skylar Gisele, Taylor Isabela, and Hudson Cristiano.
Jennifer Pierson
Jennifer Pierson, Managing Partner of STRIVE, began her career in Arizona while in school at Arizona State University obtaining her degree in Real Estate Finance. She then went on to spend 21 years as an investment sales professional at CBRE. Jennifer was named ‘Rookie of the Year’ her first year at CBRE and was a Top 20 Producer in Dallas/ Fort Worth virtually every year after that. She was also ranked as a Top 200 Producer nationally as well as a member of the Colbert Coldwell Circle, an honor reserved for the top 1% of sales professionals at CBRE.
From 2010-2013, Jennifer was asked to lead the United States Private Capital Investment Group at CBRE with more than 300 brokers across the country reporting to her. She did this while maintaining her investment sales practice. During her tenure as Managing Director of the Private Capital Group, Ms. Pierson exceeded performance expectations in both recruiting and revenue growth, as well as continuing to be a top performer in her investment sales business.
In 2015 Jennifer made the decision to fulfill a lifelong goal of owning and operating her own retail investment firm. Pierson Retail Advisors helped property owners and investors achieve maximum value in the disposition of their commercial real estate assets. She since has merged companies with another dominant company in the market, The Vitorino Group, led by Jason Vitorino. Together Jason, Jennifer and their teammates are a force to be reckoned with in the DFW market place and call themselves STRIVE.
Jennifer loves to ski, paint, travel and spend time with her friends and family. Jennifer lives in Dallas with her husband and two children, Creighton and Lucy.
60% 40% OUTSIDE BROKERAGE COMMUNITY
