Melissa Village - Melissa, TX

MELISSA VILLAGE MELISSA, TX (DFW MSA)

FUTURE KROGER SITE

PRI C I N G & FI N A NC IA L ANALYS IS

M E LISSA V ILLAG E - M E LISSA, T X

Melissa Village 2617 Sentinel Way Melissa, TX 75454

OFFERING SUMMARY Price

$17,305,000

Cap Rate

5.68%

Net Operating Income

$982,174

Price PSF

$538.83

Occupancy

100%

Year Built

2021

Gross Leasable Area

32,116 SF

0+ 00 20,

V PD

7,000+ VPD

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

2

PRI C I N G & FI N A NC IA L ANALYS IS

PROJECTED INCOME & EXPENSES

M E LISSA V ILLAG E - M E LISSA, T X

CURRENT

PSF

Base Rent - Occupied Space

100%

$982,174

$30.58

Base Rent - Lease Up Space

-

-

-

$982,174

$30.58

GROSS POTENTIAL RENT Expense Reimbursements

CURRENT

PSF

($171,998)

($5.36)

Insurance

($9,876)

($0.31)

CAM

($75,714)

($2.36)

($38,612)

($1.20)

($296,200)

($9.22)

Real Estate Taxes

Management Fee

Real Estate Taxes

$171,998

$5.36

Insurance

$9,876

$0.31

CAM

$75,714

$2.36

$38,612

$1.20

Total Expense Reimbursements

$296,200

$9.22

GROSS POTENTIAL INCOME

$1,278,374

$39.80

-

-

$1,278,374

$39.80

($171,998)

($5.36)

Insurance

($9,876)

($0.31)

CAM

($75,714)

($2.36)

($38,612)

($1.20)

($296,200)

($9.22)

$982,174

$30.58

Management Fee

EXPENSES

3.02%

Vacancy Factor EFFECTIVE GROSS REVENUE

Total Expenses

3.02%

Operating Expenses Real Estate Taxes

Management Fee Total Recoverable Expenses Net Operating Income

3.02%

For Financing Options, Please Contact: Greg Holley | Managing Partner High St Capital (O) 469-998-7200 | (C) 714.514.2990 gholley@highstcapital.com

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

3

RE NT RO L L

M E LISSA V ILLAG E - M E LISSA, T X

Suite

Tenant

SQ FT

% of SQFT

Start

End

Annual Rent

PSF

Escalation Date

Escalation Amount

Options

Lease Type

A-100

ATA Martial Arts

3,137

9.77%

11/01/2022

03/31/2026

$81,562

$26.00

04/01/2024

$27.96

2x5

NNN

A-200

Med Spa

1,200

3.74%

12/19/2022

02/28/2028

$38,400

$32.00

03/01/2024

$32.75

2x5

NNN

A-300

Pending Tenant

1,211

3.77%

11/01/2022

10/31/2027

$36,330

$30.00

-

-

-

NNN

A-400

Sun View Cafe

2,500

7.78%

08/01/2021

08/31/2031

$65,100

$26.04

09/01/2023

$30.00

1x5

NNN

B-100

Jersey Mikes

1,500

4.67%

09/15/2021

10/15/2031

$40,500

$27.00

10/15/2023

$29.04

2x5

NNN

B-200

Cornerstone Chiropractic

1,470

4.58%

09/01/2022

08/31/2032

$45,570

$31.00

09/01/2025

$32.04

1x5

NNN

B-300

Bietsch Orthodontics

3,000

9.34%

08/01/2021

11/30/2031

$90,000

$30.00

09/01/2026

$33.00

2x5

NNN

B-400

The Red Feather

2,037

6.34%

12/01/2021

02/01/2031

$67,221

$33.00

01/01/2027

$36.36

2x5

NNN

C-100

Big Star Ice

1,500

4.67%

10/01/2021

09/30/2031

$52,500

$35.00

11/01/2026

$38.52

2x5

NNN

C-200

Gentle Creek Dental

2,300

7.16%

02/01/2022

03/31/2032

$69,000

$30.00

03/01/2027

$32.04

2x5

NNN

C-300

Health Pediatric Dentist

2,047

6.37%

09/01/2022

12/31/2032

$61,410

$30.00

10/01/2027

$33.00

2x5

NNN

C-350

Sharkey's

1,022

3.18%

01/01/2022

12/31/2032

$35,259

$34.50

02/01/2024

$35.52

2x5

NNN

C-400

TSO Melissa

2,500

7.78%

11/01/2021

10/31/2032

$75,000

$30.00

12/01/2026

$33.00

2x5

NNN

D-100

Smoothie King

1,262

3.93%

09/01/2022

02/01/2032

$42,858

$33.96

02/01/2028

$37.44

2x5

NNN

D-200

Community Medical

3,192

9.94%

06/01/2021

06/30/2031

$114,912

$36.00

07/01/2026

$39.60

2x5

NNN

D-300

Wingstop

2,238

6.97%

05/01/2021

10/01/2031

$64,902

$29.00

10/01/2026

$30.96

2x5

NNN

Occupied

32,116

100%

$980,524

$30.53

Vacant

2,000

0%

Total

32,116

100%

*Smoothie King is paying $1,792.04 Monthly until 2/1/2023. Seller will Credit the Buyer with Difference in Rent at Closing Options shown at MKT are TBD, but not less than 110% of rent in final term.

TSO Options are no less than 105% of most recent terms rent Wingstop, Smoothie King, Red Feather, Health pediatric, Bietsch, Jersey Mike’s, Sunview, ATA: 6% Cumulative Cap on CAM Sharkeys, Big Star Ice: 5% Cumulative Cap on CAM Gentle Creek: 8% Cumulative Cap on CAM Community Medical: If expenses increase by more than 6% in a calendar year, they have option to audit

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

4

TE NA NT INF ORMAT I ON

M E LISSA V ILLAG E - M E LISSA, T X

DBA

Jersey Mike’s Subs

Corporate/Franchise

Franchise

Locations

2,000+ Nationwide

Public/Private

Private

Line of Business

A Sub Above, LLC., doing business as Jersey Mike’s Subs, is an American submarine sandwich chain headquartered in Manasquan, New Jersey. Like the original Mike’s store in 1956, each Jersey Mike’s Subs serves submarine sandwiches made to order, slicing the meats and cheeses as needed.

DBA

Smoothie King

Corporate/Franchise

Franchise

Locations

1,000+ Worldwide

Public/Private

Private

Line of Business

At Smoothie King, the unique menu options are far more than just “fruit in a blender”.

Fruit, juice, yogurt, and dairy are all commodities that anyone can provide. The Smoothie King franchise creates specialized Smoothies that are expertly blended for specific needs, goals, and ambitions. For healthy-lifestyle individuals and families, Smoothie King is the premium Smoothie Destination that makes it simple and pleasurable to achieve health goals.

DBA

Wingstop

Corporate/Franchise

Franchise

Locations

1,500+ Worldwide

Public/Private

Public

Line of Business

What began as a small buffalo-style chicken wing restaurant in Garland, Texas, continues to soar to great heights. Wingstop is the destination when you crave fresh never faked wings, hand-cut seasoned fries and any of the famous sides. For people who demand flavor in everything they do, there’s only Wingstop - because it’s more than a meal, it’s a flavor experience.

PROPERTY DESCRIPTION

5

TE NA NT INF ORMAT I ON

M E LISSA V ILLAG E - M E LISSA, T X

DBA

Texas State Optical

Corporate/Franchise

Franchise

Locations

126+ in Texas

Public/Private

Private

Line of Business

Texas State Optical’s vision is to offer convenient locations, qualified Doctors of Optometry and a large selection of competitively priced eyewear presented by knowledgeable and well trained opticians. Texas State Optical has provided more Texas families with quality eye care than any other eye care organization and earned recognition as the largest single provider for vision benefit plans in Texas.

DBA

ATA Martial Arts

Corporate/Franchise

Franchise

Locations

950+ Nationwide

Public/Private

Private

Line of Business

ATA Martial Arts is the nation’s largest martial arts organization. ATA Martial Arts has traditional, progressive, high-energy curriculum and certified instructors. Their programs are for kids, adults, and families to cultivate self-discipline and to be successful in life.

ATA believes it is their responsibility to teach students of every nation, every age and every gender to be the best possible version of themselves through Songahm Taekwondo.

DBA

Sharkey’s Cuts For Kids

Corporate/Franchise

Franchise

Locations

100+ Nationwide

Line of Business

As the premier provider of kid’s haircuts (ages up to 14), Sharkey’s Cuts for Kids brings fun, excitement and expertise to haircuts. At Sharkey’s Cuts for Kids, we know that kids and parents want something different with their haircut experience. So we provide it all: a superior haircut with warm, experienced stylists in a meticulously clean place filled with fun!

With soon to be over 1100 employees nationwide, we strive to provide professional services in a fun and exciting environment by friendly and experienced staff members. We believe everyone including mom and dad should have an enjoyable experience at Sharkey’s Cuts for Kids where “Haircuts are Cool and Fun Rules!”

PROPERTY DESCRIPTION

6

I N VE S TMENT HI GHLI GHT S

•

M E LISSA V ILLAG E - M E LISSA, T X

2021 Brand New Class ‘A’ Retail Development in Affluent DFW Suburb Melissa, TX

•

Long Term NNN Leases – Average Remaining Lease Term is 9 Years

•

All Tenants have Rental Escalations in the Primary Term

•

Complementary Mix of National, Regional & Local Retailers that are Internet Resistant

•

One of the Fastest Growing Cities in the U.S. – Melissa, TX is Growing over 12% Annually

•

Kroger is Building a Store Adjacent to the Property Immediately to the East of Washington Dr

•

Fronting Highway 121, the Property is Visible to over 27,000 Vehicles per Day

•

Excellent Positioning on Highway 121 & Less than a Quarter Mile from Melissa High School

•

Amazing

Demographics

–

Average

Household

Income is over $152,000 in a 1 Mile Radius – 2X the National Average •

Surrounded by Several National Retailers and Soon to be Developed Master Planned Communities

PROPERTY DESCRIPTION

7

S I T E PL A N

M E LISSA V ILLAG E - M E LISSA, T X

Jeremiah’s Italian Ice Gentle Creek Dental Health Pediatric Dentist

Pending Tenant

Sun View Cafe

Cornerstone Chiropractic

Bietsch Orthodontics

The Red Feather

ty uni mm ical o C d Me

CONCHO DRIVE PROPERTY DESCRIPTION

8

A E R I AL MA P

U. S. HW Y 75

M E LISSA V ILLAG E - M E LISSA, T X

N

,0 27

+ 00

VP

E AT T S

HW

Y

12

1

D

MARKET OVERVIEW

9

LO C AL MA P

M E LISSA V ILLAG E - M E LISSA, T X

MARKET OVERVIEW

10

REG IONA L MA P

M E LISSA V ILLAG E - M E LISSA, T X

MARKET OVERVIEW

11

M A R KET S U MMARY

M E LISSA V ILLAG E - M E LISSA, 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 fourth-largest concentration of Fortune 500 companies in the country and is the largest economic center of the 12-county Dallas-Fort Worth metropolitan area. DFW has strong submarket occupancy rates, is home to more shopping centers per capita, and has the third-largest concentration of corporate headquarters for publicly traded companies in the U.S. Over the past decade, DFW has grown by some 1.3 million people to reach a population of just under 7.7 million, making it the nation’s fourth-largest metro. Population has surged almost three times faster than the average for the nation’s 50 largest metros. Much of this growth has come from net domestic migration. Among America’s top 20 metros, DFW boasts the fourth-highest rate of net inbound migration. From 2010 to 2020, DFW saw net inbound migration from elsewhere in the U.S. of more than 430,000—more than any other U.S. metro. It’s projected that DFW will reach 10 million people sometime in the 2030s, surpassing Chicago to become America’s third-largest metro area. The

metroplex owes its growth to railroads, interstate highways, and airports, plus an unusual degree of economic freedom and affordability. DFW’s economy is the fourth-largest in the U.S., with a 2020 real GDP of just over $620.6 billion. DFW’s economy is primarily based on banking, commerce, insurance, telecommunications, technology, energy, healthcare, medical research, transportation, and logistics. The city of Dallas is home to nine Fortune 500 companies, while the Metroplex hosts 22.

Moreover, it is the only metro area in the country home to three of the top-10 largest Fortune 500 companies by revenue.

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 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 22 4th 3rd

No.

2

nd

Best Places for Business and Careers (Forbes, 2019) Fortune 500 Companies Call Dallas Home (Fortune) Largest Metropolitan Area in the United States Largest Concentration of Corporate Headquarters in the United States Most Economic Development Projects in U.S. Metros (Site Selection, 2020) MARKET OVERVIEW

12

D E M OG RA PHIC STAT I ST I CS

M E LISSA V ILLAG E - M E LISSA, T X

1 Mile

3 Mile

5 Mile

Population

1 Mile

3 Mile

5 Mile

Households:

2010 Population

1,963

6,610

17,439

2010 Households

644

2,177

5,424

2020 Population

4,575

14,203

31,364

2020 Households

1,532

4,823

10,322

2025 Population Projection

5,711

17,671

38,612

2025 Household Projection

1,911

5,999

12,748

Annual Growth 2010-2020

11.10%

9.60%

6.70%

Annual Growth 2010-2020

10.40%

9.10%

6.70%

Annual Growth 2020-2025

5.00%

4.90%

4.60%

Annual Growth 2020-2025

4.90%

4.90%

4.70%

37

36.1

35.4

Owner Occupied

1,690

5,222

10,546

27%

28%

29%

Renter Occupied

221

777

2,202

17

57

111

Avg Household Size

3

2.9

2.9

Avg Household Vehicles

3

2

2

$72M

$209.6M

$409.6M

Median Age Bachelor's Degree or Higher U.S. Armed Forces

Population by Race

Total Consumer Spending

White

4,141

12,567

26,371

Black

233

909

3,159

American Indian/Alaskan Native

61

185

404

Avg Household Income

$149,441

$132,817

$113,950

Asian

53

195

513

Median Household Income

$136,216

$114,652

$101,080

1

16

51

< $25,000

40

93

387

86

332

866

$25,000 - 50,000

77

504

1,671

594

2,082

6,057

$50,000 - 75,000

186

527

1,125

$75,000 - 100,000

210

954

1,901

Hawaiian & Pacific Islander Two or More Races Hispanic Origin

Housing Median Home Value Median Year Built

Demographic data © CoStar 2021

Income

$347,732

$331,615

$295,322

$100,000 - 125,000

134

569

1,806

2010

2010

2010

$125,000 - 150,000

263

668

1,117

$150,000 - 200,000

358

884

1,503

$200,000+

262

624

814

MARKET OVERVIEW

13

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 tenant’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: ӽ that the owner will accept a price less than the written asking price; ӽ that the buyer/tenant will pay a price greater than the price submitted in a written offer; and ӽ 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