Eastgate Marketplace - Garland, TX

EASTGATE MARKETPLACE GARLAND, TX (DALLAS MSA)

NOT A PART

PRICING & FINANCIAL ANALYSIS

E ASTG AT E M AR K E T P LAC E

Eastgate Marketplace 4517 Saturn Road Garland, TX 75041

OFFERING SUMMARY Price Cap Rate Net Operating Income Price PSF Occupancy Year Built

$8,750,000 7.73% $676,037 $86.70 80.0% 1972/1998

Gross Leasable Area

100,925 SF

Lot Size

10.32 Acres

2020 Cap Rate 2020 Net Operating Income

8.18% $715,407

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

2

PRICING & FINANCIAL ANALYSIS

E ASTG AT E M AR K E T P LAC E

PROJECTED INCOME & EXPENSES Base Rent - Occupied Space

CURRENT 100%

GROSS POTENTIAL RENT

PSF

EXPENSES

CURRENT

PSF

$815,789

$8.08

Real Estate Taxes

$128,371

$1.27

$815,789

$8.08

Insurance

$26,451

$0.26

CAM (2017)

$91,476

$0.91

CAM-DPS (2017)

$29,226

$0.29

$120,702

$1.20

$37,740

$0.37

$313,263

$3.10

CAM

Expense Reimbursements CAM Recoveries

$68,032

$0.67

$18,216

$0.18

Total CAM

Insurance Recoveries

$14,909

$0.15

Management Fee

Real Estate Tax Recoveries

$72,354

$0.72

Total Expenses

Total Expense Reimbursements

$173,512

$1.72

$989,300

$9.80

$120,702

$1.20

$37,740

$0.37

Total Insurance

$26,451

$0.26

Total Real Estate Taxes

$128,371

$1.27

Total Recoverable Expenses

$313,263

$3.10

$676,037

$6.70

Management Fee Recoveries

EFFECTIVE GROSS REVENUE

3.80%

Operating Expenses Total CAM Management Fee

Net Operating Income

3.80%

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

3

RE NT RO L L

Tenant

Quality Based Learning Center

E ASTG AT E M AR K E T P LAC E

Suite

SQ FT

% of SQFT

Lease Dates

Minimum Rent

Recoveries

Total

Start

End

Annual

Monthly

PSF

Annual

PSF

Revenue

% of Revenue

1430-32

3,460

3.43%

10/14

09/19

$41,520

$3,460

$12.00

$10,740

$3.10

$52,260

5.28%

Comfort Insurance

1434

1,520

1.51%

06/18

08/23

$18,240

$1,520

$12.00

$4,718

$3.10

$22,958

2.32%

Available

1440

10,000

9.91%

-

-

$0

$0

$0.00

$0

$0.00

$0

0.00%

Champion Nutrition

1452

1,000

0.99%

09/17

09/20

$15,000

$1,250

$15.00

$3,104

$3.10

$18,104

1.83%

SZ Studio Fitness

1454

1,000

0.99%

02/16

04/19

$10,000

$833

$10.00

$3,104

$3.10

$13,104

1.32%

Available

1518a

10,200

10.11%

-

-

$0

$0

$0.00

$0

$0.00

$0

0.00%

Aaron's, Inc.

1518b

8,170

8.10%

10/09

10/20

$69,445

$5,787

$8.50

$22,304

$2.73

$91,749

9.27%

1518

3,840

3.80%

08/14

08/19

$36,480

$3,040

$9.50

$11,919

$3.10

$48,399

4.89%

Royal Barbers

1518g

1,820

1.80%

09/16

11/21

$26,390

$2,199

$14.50

$5,649

$3.10

$32,039

3.24%

Jimmy's Big Burgers

1524

1,840

1.82%

03/14

02/24

$20,240

$1,687

$11.00

$5,711

$3.10

$25,951

2.62%

Jumping World

4443

34,235

33.92%

06/15

05/26

$236,222

$19,685

$6.90

$106,263

$3.10

$342,484

34.62%

DPS State of Texas

4445

23,840

23.62%

09/12

08/22

$342,253

$28,521

$14.36

$0

$0.00

$342,253

34.60%

Total Count/GLA

12

100,925

100%

Totals

$815,789

$67,982

$989,301

100.00%

Occupied

10

80,725

80.0%

Available

2

20,200

20.0%

$10.11

80,725

100.0%

Ernesto's Restaurant

Total Avg Rent

$173,512

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

4

ESTIMATED REIMBURSEMENT REVENUE Tenant

Quality Based Learning Center

Suite

SQ FT

E ASTG AT E M AR K E T P LAC E

% of SQFT

CAM

Management Fee

Insurance

Real Estate Taxes

Total Recovery

Monthly

PSF

Monthly

PSF

Monthly

PSF

Monthly

PSF

Monthly

PSF

1430-32

3,460

3.43%

$345

$1.20

$108

$0.37

$76

$0.26

$367

$1.27

$895

$3.10

Comfort Insurance

1434

1,520

1.51%

$151

$1.20

$47

$0.37

$33

$0.26

$161

$1.27

$393

$3.10

Available

1440

10,000

9.91%

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

Champion Nutrition

1452

1,000

0.99%

$100

$1.20

$31

$0.37

$22

$0.26

$106

$1.27

$259

$3.10

SZ Studio Fitness

1454

1,000

0.99%

$100

$1.20

$31

$0.37

$22

$0.26

$106

$1.27

$259

$3.10

Available

1518a

10,200

10.11%

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

Aaron's, Inc.

1518b

8,170

8.10%

$814

$1.20

$0

$0.00

$178

$0.26

$866

$1.27

$1,859

$2.73

1518

3,840

3.80%

$383

$1.20

$120

$0.37

$84

$0.26

$407

$1.27

$993

$3.10

Royal Barbers

1518g

1,820

1.80%

$181

$1.20

$57

$0.37

$40

$0.26

$193

$1.27

$471

$3.10

Jimmy's Big Burgers

1524

1,840

1.82%

$183

$1.20

$57

$0.37

$40

$0.26

$195

$1.27

$476

$3.10

Jumping World

4443

34,235

33.92%

$3,412

$1.20

$1,067

$0.37

$748

$0.26

$3,629

$1.27

$8,855

$3.10

DPS State of Texas

4445

23,840

23.62%

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

100,925

100%

$5,669

Ernesto's Restaurant

TOTALS

$1,518

$1,242

$6,030

$14,459

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

5

L E A SE PROVIS ION S

Tenant

E ASTG AT E M AR K E T P LAC E

Suite

SQ FT

Base Rental Increases

Renewal Options

Termination Rights

Date

PSF

Options

Date

PSF

Quality Based Learning Center 1430-32

3,460

-

-

1x5

6/1/2019

FMV

-

Comfort Insurance

1434

1,520

-

-

-

1440 1452

10,000 1,000

1x3

10/1/2020

FMV

-

SZ Studio Fitness Available Aaron's, Inc.

1454 1518a 1518b

1,000 10,200 8,170

$12.00 $12.50 $13.00 $13.50 $14.50 $15.00 -

-

Available Champion Nutrition

9/1/2019 9/1/2020 9/1/2021 9/1/2022 12/1/2018 12/1/2019 -

1x3 1x5

5/1/2019 11/1/2020

FMV $9.35

Ernesto's Restaurant Royal Barbers

1518 1518g

3,840 1,820

9/1/2019 -

FMV -

1524

1,840

Jumping World DPS State of Texas

4443 4445

34,235 23,840

$14.00 $14.50 $15.00 $11.00 $11.50 $12.00 $12.50 $13.00 $8.05 CPI CPI CPI CPI

1x5 -

Jimmy's Big Burgers

11/1/2018 11/1/2019 11/1/2020 3/1/2019 3/1/2020 3/1/2021 3/1/2022 3/1/2023 6/1/2020 9/1/2018 9/1/2019 9/1/2020 9/1/2021

Either Landlord or Tenant may elect to terminate early this Lease at any time during the Term upon not less than one hundred eighty ( 180) day prior written notice (“Termination Notice”) of said election to terminate. The effective date of the early termination of this Lease will be at 11 :59pm Central Standard Time on the one hundred eightieth ( I 80th ) day after the Termination Notice is given (“Termination Effective Date”).

In no event will any termination of the Lease hereunder require the payment by Tenant of any termination fee, penalty, or other similar charge.

-

1 x 10 5x5

6/1/2026 9/1/2022 9/1/2027 9/1/2032 9/1/2037

FMV CPI CPI CPI CPI

TOTAL

This lease contract is made and entered into in accordance with and subject to the provisions of the Texas Constitution and the Texas Government Code, Title 10, Subtitle D, and is made contingent upon the continuation of the availability of money appropriated by the legislature to pay for the lease. In the event the Legislature or the Executive Branch of the State of Texas cease to fund the lease, or the agency ceases to exist as a result of the Legislative sunset review process, then the Texas Facilities Commission, hereinafter referred to as Commission, may assign another state agency to the space, or a part thereof, covered by this lease. Should the Commission be unable to find another State agency or agencies to fill, or partially fill the space, the Commission, upon written notice to the Lessor, either may terminate this lease, or sublet in whole or in part to a private third party.

100,925

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

6

TE NA NT INF ORMAT I ON

E ASTG AT E M AR K E T P LAC E

Company

Aaron’s

Corporate/Franchise

Corporate

Public/Private

Public

Locations

1,700+ Locations

Website

www.aarons.com

Line of Business

Aaron’s is a lease-to-own retailer headquartered in Atlanta, Georgia. The company, founded in 1955, focuses on leases and retail sales of furniture, consumer electronics, home appliances, accessories and computers.

Company

Jumping World

Corporate/Franchise

Corporate

Public/Private

Private

Locations

12 Locations

Website

www.jumpingworldusa.com

Line of Business

Jumping World is an indoor trampoline park where children and adults can be physically active. Jumping World offers parks featuring trampoline lanes, basketball dunk, dodgeball, foam pits, redemption arcade and toddler courts. Some locations offer a ninja warrior course, water ball, mechanical bull and indoor zip line.

Company

Texas Department of Public Safety

Corporate/Franchise

Government

Public/Private

Public

Locations

14 Driver License Mega Centers in Texas

Website

www.dps.texas.gov

Line of Business

The Texas Department of Public Safety (DPS) is a department of the government of the state of Texas. DPS is responsible for statewide law enforcement and vehicle regulation. The Public Safety Commission oversees DPS. Texas Department of Public Safety Driver License Mega Centers are the DPS’s premier location for all of driver license and identification card needs.

PROPERTY DESCRIPTION

7

I N VE S TMENT HI GHLI GHT S

E ASTG AT E M AR K E T P LAC E

• F antastic value add opportunity in Garland at only 80% occupancy. The vacancies are two 10,000 SF second generation spaces that are both visible and very leasable.

• T he Property is priced well below replacement at $87/SF. Additionally, the in place rents are well below market at $10.11/SF creating an opportunity for quick upside during tenant rollover.

• L ong-term anchor tenant Texas Department of Public Safety drives tremendous traffic to the property and creates cross shopping with the surrounding tenants.

• Property Improvements - Everything except the DPS and Jumping World have new roofs. The portion not replaced is in excellent condition. The current owner also re-sealed and striped the parking lot, painted, and upgraded the pylon signs.

• A djacent to Walmart Supercenter bringing large volumes of cross traffic to the center.

• T he property is easily accessed from Interstate 635 via entrance and exit ramps where I-635 intersects with Northwest Hwy. Traffic counts on I-635 exceed 200,000 VPD creating steady traffic past the center.

• B oth vacancies are second generation suites complete with lighting and bathrooms. This lowers the amount of tenant improvement dollars necessary to lease up the property.

PROPERTY DESCRIPTION

8

S I T E PL A N

E ASTG AT E M AR K E T P LAC E

1518a

1518b

SUITE

TENANT

GLA

1430-32

Quality Based Learning Center

3,460

1434

Comfort Insurance

1,520

1440

Available - Second Generation

1452

Champion Nutrition

1,000

1454

SZ Studio Fitness

1,000

1518a

Available - Second Generation

10,200

1518b

Aaron's, Inc.

8,170

Ernesto's Restaurant

3,840

1518

10,000

1518

1518g

Royal Barbers

1,820

1518g

1524

Jimmy's Big Burgers

1,840

4443

Jumping World

34,235

4445

DPS State of Texas

23,840

1524

4443

4445

1430-32

1434

1440

1452 1454

PROPERTY DESCRIPTION

9

A E R I AL MA P

HIGHLAND MEADOW ELEMENTARY SCHOOL

E ASTG AT E M AR K E T P LAC E

177, 000

VPD

ROUTH ROACH ELEMENTARY SCHOOL

NORTHWEST HWY

31,154 VPD 17,960 VPD

26 ,16 1V

PD

Whiterock Marketplace

19 0 71 5, D VP

GILL ELEMENTARY SCHOOL

FE

R

G

U

SO

N

R

D

CASA VIEW ELEMENTARY SCHOOL

PROPERTY DESCRIPTION

10

REG IONA L MA P

E ASTG AT E M AR K E T P LAC E

Eastgate Marketplace

PROPERTY DESCRIPTION

11

LO C AL MA P

E ASTG AT E M AR K E T P LAC E

Eastgate Marketplace

PROPERTY DESCRIPTION

12

M A R KET S U MMARY

E ASTG AT E M AR K E T P LAC E

Dallas - Fort Worth, TX

OVERVIEW Dallas encompasses half of the Dallas-Fort Worth Metroplex and is the third-largest city in Texas and the ninth-largest city in the United States.

Dallas is home to the third-largest concentration of Fortune 500 companies in the country and is the largest economic center of the Dallas-Fort Worth metropolitan area. The Metroplex has strong submarket occupancy rates, is home to more shopping centers per capita and has one of the largest concentrations of corporate headquarters for publicly traded companies in the United States.

The city is the largest economic center of the 12-county Dallas–Fort Worth–Arlington metropolitan area, which had a population of 7,399,662 people as of July 1, 2017. The metropolitan economy is the fourth-largest and third-fastest growing in the United States, with a 2017 real GDP of $535.5 billion.

In 2018, Dallas had both the highest job growth rate and the most jobs added in the nation, and is the fourth-largest employment center in the nation (behind New York City, Los Angeles, and Chicago) with more than three million non-farm jobs. In the

latest rankings released in 2018, Dallas was rated as a “beta plus” world city by the Globalization and World Cities Study Group & Network. Dallas is also ranked 14th in world rankings of GDP by the Organization for Economic Co-operation and Development. The Dallas-Fort Worth Metroplex has one of the largest concentrations of corporate headquarters for publicly traded companies in the United States. The city of Dallas has nine Fortune 500 companies, and the DFW region as a whole has 22.

Dallas is the best-ranked city on the Regulatory Climate Index thanks to its efficient local regulations.

Entrepreneurs and small businesses can expect a welcoming business environment across all five areas of local regulation. Dallas scores above average across each meaningful measure of an interaction that a business has with a local government agency through procedure, time, and cost. These rankings reflect the city’s continuing efforts to develop programs and initiatives to strengthen the business environment, provide access to capital, and encourage economic growth at the local level.

Q U I C K S TAT S

No.

1

Fastest Growing City in the U.S. (U.S. Census Bureau)

4 5th 22 th

Largest Metropolitan Area in the United States Texas, Fastest Growing Economy in the U.S. (Forbes) Fortune 500 Companies Call DFW Home (USA Today)

10K

Home to over 10,000 corporate headquarters, making it the largest concentration in the U.S.

PROPERTY DESCRIPTION

13

D E M OG RA PHIC STAT I ST I CS

E ASTG AT E M AR K E T P LAC E

1 MILE

3 MILE

5 MILE

20,009 19,106 18,332 4.73% 4.22% 9,648

151,146 144,550 140,013 4.56% 3.24% 74,368

362,136 345,690 331,009 4.76% 4.44% 149,954

13,909 3,683 229 914 24 348 0

112,132 22,600 2,066 4,873 180 2,699 26

251,863 62,973 4,444 19,256 363 6,791 38

7,004 6,687 6,411 4.74% 4.31% 3,190 3,497 $56,004 $45,594

51,571 49,357 48,011 4.49% 2.80% 27,875 21,482 $61,952 $46,325

127,688 121,970 117,284 4.69% 4.00% 67,522 54,447 $67,345 $50,186

1,415 2,373 1,496 649 331 161 198 63

10,586 15,888 9,545 5,763 3,448 1,447 1,506 1,174

25,375 35,416 23,132 14,750 9,927 4,308 5,226 3,837

Population: 2023 Projection 2018 Estimate 2010 Census Growth 2018-2023 Growth 2010-2018 2018 Population Hispanic Origin

2018 Population by Race: White Black Am. Indian & Alaskan Asian Hawaiian & Pacific Island Other U.S. Armed Forces:

Households: 2023 Projection 2018 Estimate 2010 Census Growth 2018 - 2023 Growth 2010 - 2018 Owner Occupied Renter Occupied 2018 Avg Household Income 2018 Med Household Income

2018 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+ Demographic data © CoStar 2018

PROPERTY DESCRIPTION

14

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 tenantâ&#x20AC;&#x2122;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: ӽӽ that the owner will accept a price less than the written asking price; ӽӽ that the buyer/tenant will pay a price greater than the price submitted in a written offer; and ӽӽ 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