JERNIGAN HEIGHTS FLOWER MOUND, TX (DALLAS MSA)
PRICING & FINANCIAL ANALYSIS
J E R NIG AN H E IG H T S - F LOWE R M O U ND, T X
Jernigan Heights 4150 Justin Rd Flower Mound, TX 75077
OFFERING SUMMARY Price Cap Rate
$2,610,000 6.26%
Net Operating Income
$163,321
Price PSF
$385.35
Occupancy Year Built Gross Leasable Area Lot Size
100.0% 2016 6,773 SF 1.19 Acres
F I N A N C I A L A N A LY S I S
2
PRICING & FINANCIAL ANALYSIS
J E R NIG AN H E IG H T S - F LOWE R M O U ND, T X
PROJECTED INCOME & EXPENSES Base Rent - Occupied Space
CURRENT 100%
GROSS POTENTIAL RENT
PSF
$8.31
$163,321
$24.11
Insurance
$2,709
$0.40
Total CAM
$8,466
$1.25
$8,371
$1.24
$75,849
$11.20
Management Fee
$8,371
$1.24
Total Expenses
$2,709
$0.40
Real Estate Tax Recoveries
$56,302
$8.31
Total Expense Reimbursements
$75,849
$11.20
$239,170
$35.31
$8,466
$1.25
$8,371
$1.24
$2,709
$0.40
$56,302
$8.31
Total Recoverable Expenses
$75,849
$11.20
Net Operating Income
$163,321
$24.11
EFFECTIVE GROSS REVENUE
$56,302
Real Estate Taxes
$1.25
Insurance Recoveries
PSF
$24.11
$8,466
Management Fee Recoveries
CURRENT
$163,321
Expense Reimbursements CAM Recoveries
EXPENSES
3.50%
Operating Expenses Total CAM Management Fee Total Insurance Total Real Estate Taxes
3.50%
F I N A N C I A L A N A LY S I S
3
RE NT RO L L
Tenant
J E R NIG AN H E IG H T S - F LOWE R M O U ND, T X
Suite
SQ FT
% of SQFT
Lease Dates
Minimum Rent
Recoveries
Total
Start
End
Annual
Monthly
PSF
Annual
PSF
Revenue
% of Revenue
Tae Kwon Do
4150-116
2,482
36.65%
09/18
09/24
$53,900
$4,492
$21.72
$27,795
$11.20
$81,695
34.16%
Testosterone Center of TX [1]
4150-118
1,791
26.44%
11/17
10/22
$45,671
$3,806
$25.50
$20,057
$11.20
$65,727
27.48%
Golden Chick
4150-120
2,500
36.91%
07/17
07/22
$63,750
$5,313
$25.50
$27,997
$11.20
$91,747
38.36%
Total Count/GLA
3
6,773
100%
$163,321
$13,610
$239,169
100.00%
Occupied
3
6,773
100.0%
Available
0
0
0.0%
$24.11
6,773
100.0%
Total Avg Rent
$75,849
[1] Rental rate reflects increase occuring 11/1/2018
F I N A N C I A L A N A LY S I S
4
ESTIMATED REIMBURSEMENT REVENUE
Tenant
Suite
SQ FT
J E R NIG AN H E IG H T S - F LOWE R M O U ND, T X
% of SQFT
CAM
Management Fee
Insurance
Real Estate Taxes
Total Recovery
Monthly
PSF
Monthly
PSF
Monthly
PSF
Monthly
PSF
Monthly
PSF
Tae Kwon Do
4150-116
2,482
36.65%
$259
$1.25
$256
$1.24
$83
$0.40
$1,719
$8.31
$2,316
$11.20
Testosterone Center of TX
4150-118
1,791
26.44%
$187
$1.25
$184
$1.24
$60
$0.40
$1,241
$8.31
$1,671
$11.20
Golden Chick
4150-120
2,500
36.91%
$260
$1.25
$257
$1.24
$83
$0.40
$1,732
$8.31
$2,333
$11.20
6,773
100%
$706
TOTALS
$698
$226
$4,692
$6,321
F I N A N C I A L A N A LY S I S
5
LEASE PROVISIONS
Tenant
J E R NIG AN H E IG H T S - F LOWE R M O U ND, T X
Suite
SQ FT
Base Rental Increases
Renewal Options
Date
PSF
Options
Date
PSF
User Restrictions & Exclusive Rights
Termination Rights
Sales Reporting
Tae Kwon Do
4150-116
2,482
10/1/2020 10/1/2022
$22.66 $23.34
1x6
10/1/2024
$25.67
Tae Kwon Do - Tenant has exclusive right to operate a martial arts studio
-
No
Testosterone Center of TX
4150-118
1,791
11/1/2018 11/1/2019 11/1/2020 11/1/2021
$25.50 $26.50 $26.50 $28.00
1x5
11/1/2022
FMV
Exclusive use to operate a medical clinic
-
No
Golden Chick
4150-120
2,500
7/1/2018 7/1/2019 7/1/2020 7/1/2021
$25.50 $26.00 $26.53 $27.06
3x5
8/1/2022 8/1/2027 8/1/2032
$27.60 $30.47 $33.65
Exclusive use to operate a restaurant with a drive thru that sells chicken products
-
Yes, Only if Tenant is in Default
TOTAL
6,773
F I N A N C I A L A N A LY S I S
6
TE NA NT INF ORMAT I ON
J E R NIG AN H E IG H T S - F LOWE R M O U ND, T X
DBA
Golden Chick
Entity on Lease
GCFM, LLC
Corporate/Franchise
Franchise
Locations
170+
Credit Rating
Not Rated
Public/Private
Private
Line of Business
Golden Chick is a fast food restaurant chain serving fried chicken. The company is headquartered in Richardson, Texas. Since 1985, the chain’s flagship menu item has been its chicken strips, trademarked as Golden Tenders. In 1996, Golden Fried Chicken abbreviated to its present name, Golden Chick.
DBA
Testosterone Centers of Texas
Entity on Lease
Testosterone Centers of Texas, PLLC
Corporate/Franchise
Corporate
Locations
5
Credit Rating
Not Rated
Public/Private
Private
Line of Business
Testosterone Centers of Texas, primarily focuses on Testosterone Replacement Therapy (Low T therapy) for men, but also provides a suite of services for women.
PROPERTY DESCRIPTION
7
I N VE S TMENT HI GHLI GHT S
J E R NIG AN H E IG H T S - F LOWE R M O U ND, T X
• New Construction: Built in 2016, the Property benefits from an attractive new design. Furthermore, it is highly advantageous to an investor as it is likely to require minimal capital improvements in the near future. • Exceptional Demographics: Located within a highly dense area of Flower Mound, the Property benefits from tremendously strong demographics. The average household income within a three-mile range is well over double the national average at $168,165. • High Growth Trade Area: The population within a three-mile radius has increased 15.23% since 2010 and is expected to grow an additional 13.98% in the next five years. • Great Exposure with High Traffic Counts: The property is exposed to over 25,000 vehicles per day. This asset benefits from it’s proximity to nearby tenants including: AMC Theatres, Whole Foods Market, L.A. Fitness, Lowe’s, Starbucks, Chipotle, Target, Bed Bath & Beyond, TJ Maxx, and many other well known retailers. • Destination Tenant Base: The property is virtually immune to the forces of e-commerce as the tenant line-up consists of a Testosterone Replacement Therapy Center, Quick Service Restaurant, and a Martial Arts Center. PROPERTY DESCRIPTION
8
S I T E PL A N
J E R NIG AN H E IG H T S - F LOWE R M O U ND, T X
DRIVE THRU
Tae Kwon Do
Jernigan Rd
Bryce Ln
NOT A PART
Justin Rd
PROPERTY DESCRIPTION
9
A E R I AL MA P
J E R NIG AN H E IG H T S - F LOWE R M O U ND, T X
The Shops at Highland Village
The Marketplace at Highland Village
Highland Village Town Center
JUSTIN RD
25,063 VPD
GE LA VIL
The Highlands of Flower Mound
PK WY
76 ,5 29 D VP
MARCUS HIGH SCHOOL
PROPERTY DESCRIPTION
10
L E A SE COMPA RABLES
Property Jernigan Heights ï‚« 4150 Justin Rd Flower Mound, TX
J E R NIG AN H E IG H T S - F LOWE R M O U ND, T X
GLA
Yr Built/ Renovated Occupancy
Major Tenants
Available SF
Rental Rates
NNN
6,773
2016
100.0%
Golden Chick, Testosterone Center of TX, Tae Kwon Do
0
$21.00 - $25.00
$12.30
Highlands Ranch 1 6060 Long Prairie Rd Flower Mound, TX
160,631
2005
97.3%
PetSmart, Office Max, Best Buy, Chipotle, Firehouse Subs, Mattress Firm, Jason's Deli, AAA Texas
4,350
(Inline) $35.00 - $43.00
$9.00
Highland Village 2 3640 Justin Rd Flower Mound, TX
388,808
2007
89.1%
AMC, Whole Foods, Barnes & Noble, FedEx Office, Talbots, Snuffer's The Children's Place
42,500
(Inline) $25.00-$40.00
$10.00
Robertson Creek Corner 3 5871 Long Prairie Rd Flower Mound, TX
16,510
2007
100.0%
Starbucks, Zoe's Kitchen, Verizon, Panda Express, Salata, Pacific Dental
0
$30.00 - $40.00
$10.00
Arbor Crossing 4 5810 Long Prairie Rd Flower Mound, TX
19,155
2007
81.2%
Fuzzy's Taco Shop, Upscale Nails, Painting With a Twist, Prime Farm to Market Restaurant
3,600
$24.00 - $38.00
$8.50
PROPERTY DESCRIPTION
11
L E A SE COMPA RABLES
J E R NIG AN H E IG H T S - F LOWE R M O U ND, T X
Jernigan Heights 1
Highlands Ranch
2
Highland Village
3
Robertson Creek Corner
4
Arbor Crossing
2
1
3
4
PROPERTY DESCRIPTION
12
LO C AL MA P
J E R NIG AN H E IG H T S - F LOWE R M O U ND, T X
PROPERTY DESCRIPTION
13
REG IONA L MA P
J E R NIG AN H E IG H T S - F LOWE R M O U ND, T X
PROPERTY DESCRIPTION
14
M A R KET S U MMARY
J E R NIG AN H E IG H T S - F LOWE R M O U ND, T X
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 6,810,913 people as of July 1, 2013. The metropolitan economy is the sixth largest in the United States, with a 2012 real GDP of $420.34 billion. In 2013 the metropolitan area led the nation with the largest year-over-year increase in employment, and advanced to become 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 2013, 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 12 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
2 3rd 4th 22
nd
Texas, Fastest Growing Economy in the U.S. (24/7 Wall St.) Fastest Growing Cities in the U.S. (Forbes) Largest Metropolitan Area in the United States Fortune 500 Companies Call DFW Home (Fortune)
10K
Home to over 10,000 corporate headquarters, making it the largest concentration in the U.S.
PROPERTY DESCRIPTION
15
D E M OG RA PHIC STAT I ST I CS
J E R NIG AN H E IG H T S - F LOWE R M O U ND, T X
1 Mile
3 Mile
5 Mile
4,560 3,966 3,191 14.98% 24.29% 276
65,263 57,331 50,485 13.84% 13.56% 4,759
168,034 147,696 130,710 13.77% 13.00% 18,076
3,556 131 37 174 5 65 9
49,299 2,183 347 4,380 57 1,065 56
124,040 8,306 1,006 11,004 127 3,213 135
1,466 1,274 1,013 15.07% 25.77% 1,208 66 $185,782 $159,468
21,366 18,746 16,268 13.98% 15.23% 17,141 1,605 $168,165 $145,260
57,433 50,473 44,438 13.79% 13.58% 42,667 7,806 $140,326 $116,946
38 34 92 123 115 191 235 447
543 1,292 1,712 1,991 2,136 2,097 3,677 5,299
2,701 5,918 6,207 5,953 6,575 5,560 7,671 9,887
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 (National Avg - $75,558) 2018 Med Household Income (National Avg - $53,889)
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
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 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