LEWISVILLE VILLAGE LEWISVILLE, TX (DALLAS MSA)
PRICING & FINANCIAL ANALYSIS
LE WISV ILLE V ILLAG E
Lewisville Village 1425 Justin Rd Lewisville, TX 75077
OFFERING SUMMARY Price Cap Rate Net Operating Income Price PSF Occupancy Year Built
$3,695,000 7.50% $276,966 $152.12 93.7% 1986
Gross Leasable Area
24,290 SF
Lot Size
2.86 Acres
F I N A N C I A L A N A LY S I S
2
PRICING & FINANCIAL ANALYSIS
LE WISV ILLE V ILLAG E
PROJECTED INCOME & EXPENSES Base Rent - Occupied Space
CURRENT 93.7%
GROSS POTENTIAL RENT
PSF
EXPENSES
$283,018
$11.65
Real Estate Taxes
$283,018
$11.65
Insurance
Expense Reimbursements
CURRENT
PSF
$55,000
$2.26
$8,500
$0.35
$3,500
$0.14
$1,167
$0.05
CAM
CAM Recoveries
$16,632
$0.68
Repairs & Maintenance
Management Fee Recoveries
$14,432
$0.59
Trash Disposal
7,968
$0.33
Electricity
$4,200
$0.17
Real Estate Tax Recoveries
$51,556
$2.12
Water
$4,300
$0.18
Total Expense Reimbursements
$90,587
$3.73
Canopy & Parking Lights
$976
$0.04
$373,605
$15.38
Landscape Maintenance
$3,600
$0.15
$17,743
$0.73
$15,396
$0.63
$96,639
$3.98
Insurance Recoveries
EFFECTIVE GROSS REVENUE
Total CAM
Operating Expenses Total CAM Management Fee Total Insurance Total Real Estate Taxes Total Recoverable Expenses Net Operating Income Capitalization Rate Capital Reserves at $0.15 PSF Cash Flow before Debt Service Market Loan Cash Flow after Debt Service Cash-on-Cash Return
4.10%
$17,743
$0.73
Management Fee
$15,396
$0.63
Total Expenses
$8,500
$0.35
$55,000
$2.26
$96,639
$3.98
$276,966
$11.40
4.10%
7.50% $3,644 $273,323 $183,635 $89,687 10.10%
F I N A N C I A L A N A LY S I S
3
RE NT RO L L
Tenant
LE WISV ILLE V ILLAG E
Suite
SQ FT
% of SQFT
Lease Dates
Minimum Rent
Recoveries
Total
Start
End
Annual
Monthly
PSF
Annual
PSF
Revenue
% of Revenue
Amy Renee's Café
100
3,010
12.39%
09/15
02/21
$36,120
$3,010
$12.00
$11,975
$3.98
$48,095
12.87%
American Masters Martial Arts
200
1,678
6.91%
03/09
MTM
$20,136
$1,678
$12.00
$6,676
$3.98
$26,812
7.18%
Jin's Massage
300
1,620
6.67%
02/15
02/20
$18,630
$1,553
$11.50
$6,445
$3.98
$25,075
6.71%
State Farm
350
1,626
6.69%
04/00
03/23
$17,886
$1,491
$11.00
$6,469
$3.98
$24,355
6.52%
Pawsome Pets
400
1,305
5.37%
08/18
07/23
$15,660
$1,305
$12.00
$5,192
$3.98
$20,852
5.58%
Fitzgerald Jewelry
450
1,216
5.01%
02/98
09/23
$14,592
$1,216
$12.00
$4,838
$3.98
$19,430
5.20%
Charlton Enterprises, Inc
600
1,825
7.51%
02/94
01/20
$21,900
$1,825
$12.00
$7,261
$3.98
$29,161
7.81%
Charlton Enterprises, Inc
700
1,990
8.19%
01/18
01/20
$23,880
$1,990
$12.00
$7,917
$3.98
$31,797
8.51%
Charlton Enterprises, Inc
750
1,000
4.12%
01/18
01/20
$12,000
$1,000
$12.00
$3,979
$3.98
$15,979
4.28%
Charlton Enterprises, Inc
850
1,320
5.43%
01/18
01/20
$15,840
$1,320
$12.00
$5,252
$3.98
$21,092
5.65%
SI Computers
900
915
3.77%
05/02
10/21
$11,438
$953
$12.50
$3,640
$3.98
$15,078
4.04%
Charlton Enterprises, Inc
950
5,264
21.67%
11/09
01/20
$60,536
$5,045
$11.50
$20,943
$3.98
$81,479
21.81%
400A
1,521
6.26%
12/13
-
$0
-
$0.00
$0
$0.00
$0
0.00%
PAD
0
0.00%
11/98
10/22
$14,400
$1,200
$0.00
$0
$0.00
$14,400
3.85%
Total Count/GLA
14
24,290
100%
$373,605
100.00%
Occupied
13
22,769
93.7%
Available
1
1,521
6.3%
$11.80
22,769
100.0%
Available JPMorgan Chase ATM
Total Avg Rent
$283,018
$90,587
F I N A N C I A L A N A LY S I S
4
ESTIMATED REIMBURSEMENT REVENUE
Tenant
Suite
SQ FT
LE WISV ILLE V ILLAG E
% of SQFT
CAM
Management Fee
Insurance
Real Estate Taxes
Total Recovery
Monthly
PSF
Monthly
PSF
Monthly
PSF
Monthly
PSF
Monthly
PSF
Amy Renee's Café
100
3,010
12.39%
$183
$0.73
$159
$0.63
$88
$0.35
$568
$2.26
$998
$3.98
American Masters Martial Arts
200
1,678
6.91%
$102
$0.73
$89
$0.63
$49
$0.35
$317
$2.26
$556
$3.98
Jin's Massage
300
1,620
6.67%
$99
$0.73
$86
$0.63
$47
$0.35
$306
$2.26
$537
$3.98
State Farm
350
1,626
6.69%
$99
$0.73
$86
$0.63
$47
$0.35
$307
$2.26
$539
$3.98
Pawsome Pets
400
1,305
5.37%
$79
$0.73
$69
$0.63
$38
$0.35
$246
$2.26
$433
$3.98
Fitzgerald Jewelry
450
1,216
5.01%
$74
$0.73
$64
$0.63
$35
$0.35
$229
$2.26
$403
$3.98
Charlton Enterprises, Inc
600
1,825
7.51%
$111
$0.73
$96
$0.63
$53
$0.35
$344
$2.26
$605
$3.98
Charlton Enterprises, Inc
700
1,990
8.19%
$121
$0.73
$105
$0.63
$58
$0.35
$375
$2.26
$660
$3.98
Charlton Enterprises, Inc
750
1,000
4.12%
$61
$0.73
$53
$0.63
$29
$0.35
$189
$2.26
$332
$3.98
Charlton Enterprises, Inc
850
1,320
5.43%
$80
$0.73
$70
$0.63
$38
$0.35
$249
$2.26
$438
$3.98
SI Computers
900
915
3.77%
$56
$0.73
$48
$0.63
$27
$0.35
$173
$2.26
$303
$3.98
Charlton Enterprises, Inc
950
5,264
21.67%
$320
$0.73
$278
$0.63
$154
$0.35
$993
$2.26
$1,745
$3.98
400A
1,521
6.26%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
PAD
0
0.00%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
24,290
100%
$1,386
Available JPMorgan Chase ATM TOTALS
$1,203
$664
$4,296
$7,549
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
LE WISV ILLE V ILLAG E
Suite
Renewal Op-
Base Rental Increases
SQ FT
tions
Date
PSF
Options
User Restrictions & Exclusive Rights
Termination Rights
Amy Renee's Café
100
3,010
-
-
-
-
Yes
American Masters Martial Arts
200
1,678
-
-
-
-
-
Jin's Massage
300
1,620
-
12.50
1x5
-
-
State Farm
350
1,626
-
-
-
-
-
Pawsome Pets
400
1,305
-
-
-
-
-
Fitzgerald Jewelry
450
1,216
10/1/2018
MKT
1x5
-
-
Charlton Enterprises, Inc
600
1,825
5/18/2018
15.57
-
-
Yes
Charlton Enterprises, Inc
700
1,990
-
-
-
-
Yes
Charlton Enterprises, Inc
750
1,000
-
-
-
-
-
Charlton Enterprises, Inc
850
1,320
-
-
-
-
-
SI Computers
900
915
-
-
-
-
-
Charlton Enterprises, Inc
950
5,264
-
-
-
-
-
400A
1,521
-
-
-
-
-
PAD
0
-
-
-
-
-
Available JPMorgan Chase ATM TOTAL
24,290
F I N A N C I A L A N A LY S I S
6
TE NA NT INF ORMAT I ON
LE WISV ILLE V ILLAG E
DBA
State Farm Insurance
Entity on Lease
Christopher D. Marshall, Individually
Corporate/Franchise
Franchise
Locations
Over 18,000 agents across the U.S
Credit Rating
S&P: AA
Public/Private
Private
Line of Business
Insuring more cars and homes than any other insurer in the U.S. State Farm provides property, casualty, life and health insurance, as well as annuities, mutual funds and banking products.
DBA
Charlton Motors
Entity on Lease
Charlton Enterprises, Inc.
Corporate/Franchise
Corporate
Locations
1 location at Lewisville Village
Credit Rating
Not Rated
Public/Private
Private
Line of Business
Charlton Motors is a family owned and operated business since 2001 and offers quality preowned trucks and cars at wholesale prices to thier customers.
PROPERTY DESCRIPTION
7
I N VE S TMENT HI GHLI GHT S
•
Long Term Tenancy: Lewisville Village has seen high tenant retention with 54% of the current tenant lineup at the Property for more than six years. Furthermore, of this collection of tenants 36% have been at the Property for 10 years or more. This seasoned tenant base survived the 2008 downturn, which would point to future longevity.
•
Great Location: Lewisville Village is in a premier location within a strong retail hub and benefits from area traffic generators including Walmart Neighborhood Market, Lowe’s, Best Buy, and Office Max. The Property also benefits from traffic generated from The Shops at Highland Village, with retailers such as Whole Foods, AMC Theaters, Corner Bakery, and Barnes & Noble, as well as Highlands Plaza, which includes retailers such as Target, Bed Bath & Beyond, Academy, World Market, and many more. Lewisville Village is virtually the first property a home owner sees after exiting I-35 to travel east on Justin Rd.
•
High Traffic Counts with Convenient Access: With traffic counts of nearly 40,000, FM 407 (Justin Road) is a major east-west thoroughfare in this portion of Denton County connecting the city of Flower Mound to Lewisville and Interstate 35E. Additionally, the Property is less than a mile from Interstate 35, a major north-south artery through Texas extending from Laredo through Oklahoma and as far north as Michigan. This stretch of I-35 carries more than 202,000 vehicles per day benefitting the Property with abundant consumer traffic.
•
Excellent Demographics: Since 2010, the trade area for Lewisville Village has seen an exceptional 12.44% growth in population. Additionally, the projected growth through 2023 for the same area is 13.71%. Currently, the population within a three mile radius of the Property is 80,236 residents increasing to 184,773 residents within five miles. Additionally, this affluent community’s population base has average annual incomes of $106,601, $108,791, and $114,521 within their respective one, three, and five mile radius.
•
DFW’s Thriving Economy: The fourth largest as well as the fastest growing metropolitan area in the country, Dallas/Fort Worth’s population is projected to increase to over 10.5 million people by 2040. In 2014, The Brooking Institute ranked the DFW Metroplex 3rd for “Overall Economic Performance” due to its impressive job growth, low unemployment, high gross domestic product and healthy home prices through the recession and recovery. This strong and diverse economy added 140,000 residents between July 2015 and July 2016. Additionally, with 19 Fortune 500 companies, DFW has one of the largest corporate concentrations of Fortune 500 companies in the US. Dallas/ Fort Worth’s stable economy, vibrant population and job growth, as well as business friendly environment and low cost of living continuously promote an atmosphere of positive economic growth.
LE WISV ILLE V ILLAG E
PROPERTY DESCRIPTION
8
S I T E PL A N
LE WISV ILLE V ILLAG E
Suite
Tenant
Suite
Tenant
100
Amy Renee’s Cafe
450
Fitzgerald Jewelry
200
American Masters Martial Arts
600
Charlton Motors
300
Jin’s Massage
700 -850
Charlton Motors
350
State Farm
900
SI Computers
400
Pawsome Pets
950
Charlton Motors
400A
Available
PAD
Chase ATM
PROPERTY DESCRIPTION
9
A E R I AL MA P
The Shops at Highland Village
LE WISV ILLE V ILLAG E
The Marketplace at Highland Village
153,457 VPD
JUSTIN RD
38,925 VPD
The Highlands of Flower Mound
The Highlands of Flower Mound
PROPERTY DESCRIPTION
10
L E A SE COMPA RABLES
Property Name
Lewisville Village 1425 FM 407 (Justin Road) Lewisville, TX 75077
LE WISV ILLE V ILLAG E
GLA
Year Built
Current Occupancy
24,290
1986
Major Tenants
Available SF
Rental Rates
NNN
93.7%
State Farm, Pizza Hut, Charlton Motors, EmbroidMe, Fitzgerald Jewelers
1,521
$11.00 - $15.00
$3.94
1
Shops at Highland Village 3580 - 4150 FM 407
401,113
2007
94.7%
AMC, Whole Foods, Corner Bakery, Potbelly, Torchy's Tacos, Snuffer's, Zumiez, Victoria's Secret
21,139
Inline $23.00 - $30.00
$5.00
2
The Highlands of Flower Mound 6101 Long Prairie Rd
148,700
2003
97.0%
Bed Bath & Beyond, World Market, Famous Footwear, Cotton Patch Café, GNC, Sally Beauty
4,479
$24.00-$28.00
$7.00
3
Marketplace at Highland Village 3188 Justin Rd
148,099
2007
98.9%
LA Fitness, HomeGoods, TJ Maxx, Dollar Tree, Enterprise
1,597
$24.00-$28.00
$7.28
4
Lewisville Commons 1515 Justin Road
29,079
2005
100.0%
Walmart Neighborhood Market (Shadow), Dickey's BBQ, Kid-to-Kid, Metro PCS, Edible Arrangements
0
$15.00 - $22.50
$5.30
5
Lake Park Village 1297 Justin Road
25,741
1985
81.2%
Subway, Sherwin Williams, Armstrong McCall, Excellent Nails, Embroidery King
4,850
$10.00 - $13.00
$4.93
6
407 McGee Village 1301 FM 407
34,611
1984
85.0%
Edward Jones, Jackson Hewitt, Nick's Pizza, Postal Center, All Seasons Heating & Air,
5,191
$12.00 - $14.00
$5.00
7
Highland Plaza 1800-1862 Justin Road
41,615
1985
80.5%
CrossFit, Edward Jones, Girl Scouts, CareWay Dental, Float Spa, 407 Bar & Grill
8,100
$7.50 - $13.00
$5.05
8
Highland Point Village 1940-1952 FM 407
57,306
1992
93.1%
Goody Goody Liquor, Domino's Pizza, Bluebonnet Bicycles, Troy's Cuts
3,930
Inline $13.00 - $21.00
$3.42
PROPERTY DESCRIPTION
11
L E A SE COMPA RABLES
LE WISV ILLE V ILLAG E
Lewisville Village 1
Shops at Highland Village
2
The Highlands of Flower Mound
3
Marketplace at Highland Village
4
Lewisville Commons
5
Lake Park Village
6
407 McGee Village
7
Highland Plaza
8
Highland Point Village
2
1
8
7
4
6
5
3
PROPERTY DESCRIPTION
12
REG IONA L MA P
LE WISV ILLE V ILLAG E
Property Name
PROPERTY DESCRIPTION
13
LO C AL MA P
LE WISV ILLE V ILLAG E
Property Name
PROPERTY DESCRIPTION
14
M A R KET S U MMARY
LE WISV ILLE V ILLAG 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 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
LE WISV ILLE V ILLAG E
1 MILE
3 MILE
5 MILE
15,216 13,417 12,199 13.41% 9.98% 1,876
91,224 80,236 71,416 13.69% 12.35% 16,706
210,097 184,773 164,324 13.71% 12.44% 37,342
10,532 1,350 83 1,119 11 321 55
66,715 5,610 664 5,356 70 1,820 88
151,246 13,687 1,496 14,028 167 4,149 143
5,367 4,744 4,384 13.13% 8.21% 4,073 671 $106,601 $95,219
32,292 28,436 25,477 13.56% 11.61% 20,795 7,641 $108,791 $86,809
73,536 64,713 57,646 13.63% 12.26% 47,368 17,345 $114,521 $92,161
324 653 917 591 916 476 519 348
2,499 5,207 4,792 3,640 3,424 2,433 3,491 2,949
5,657 10,853 10,232 8,179 7,893 5,809 8,187 7,903
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
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