Pleasant Ridge Plaza - Arlington, TX

PLEASANT RIDGE PLAZA ARLINGTON, TX (DALLAS MSA)

PRI CING & F INAN CI AL AN ALYSI S

P LE ASANT R ID G E P LAZ A

Pleasant Ridge Plaza 4004 Little Rd Arlington, TX 76016

OFFERING SUMMARY Price Cap Rate

$1,395,000 6.78%

Net Operating Income

$94,641

Price PSF

$128.42

Occupancy Year Built

89.0% 1982

Gross Leasable Area

10,863 SF

Lot Size

1.05 Acres

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

2

PRI CING & F INAN CI AL AN ALYSI S

P LE ASANT R ID G E P LAZ A

PROJECTED INCOME & EXPENSES Base Rent - Occupied Space

CURRENT 100%

GROSS POTENTIAL RENT

PSF

EXPENSES

CURRENT

PSF

$100,334

$9.24

Real Estate Taxes

$31,296

$2.88

$100,334

$9.24

Insurance

$2,759

$0.25

CAM

Expense Reimbursements Real Estate Tax Recoveries

$27,839

$2.56

Landscaping

$2,100

$0.19

Insurance Recoveries

$2,454

$0.23

Water

$8,520

$0.78

CAM Recoveries

$15,517

$1.43

Electricity

$564

$0.05

$0

$0.00

Garbage

$4,260

$0.39

Total Expense Reimbursements

$45,810

$4.22

Repair & Maintenance

$2,000

$0.18

EFFECTIVE GROSS REVENUE

$146,140

$13.45

$17,444

$1.61

$0

$0.00

$51,499

$4.74

Management Fee Recoveries

Management Fee

Operating Expenses Total CAM

$17,444

$1.61

$0

$0.00

Total Insurance

$2,759

$0.25

Total Real Estate Taxes

$31,296

$2.88

Total Recoverable Expenses

$51,499

$4.74

Net Operating Income

$94,641

$8.71

Management Fee

Total CAM

0.00%

Total Expenses

0.00%

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

3

RE NT RO L L Tenant

P LE ASANT R ID G E P LAZ A Suite

SQ FT

% of SQFT

Lease Dates

Minimum Rent

Recoveries

Total

Start

End

Annual

Monthly

PSF

Annual

PSF

Revenue

% of Revenue

Austin Driving School

100

1,800

16.57%

06/19

05/24

$19,800

$1,650

$11.00

$8,533

$4.74

$28,333

19.39%

Dance Studio

102

1,630

15.01%

05/19

10/24

$19,560

$1,630

$12.00

$7,728

$4.74

$27,288

18.67%

Available

106

1,200

11.05%

-

-

$0

$0

$0.00

$0

$0.00

$0

0.00%

Yafa Mediterranean Grill

112

984

9.06%

03/17

02/25

$11,113

$926

$11.29

$4,665

$4.74

$15,778

10.80%

Nail Envy

114

675

6.21%

02/00

MTM

$16,800

$1,400

$24.89

$3,200

$4.74

$20,000

13.69%

Payless Cleaners

116

4,574

42.11%

06/13

05/23

$33,061

$2,755

$7.23

$21,684

$4.74

$54,745

37.46%

Total Count/GLA

6

10,863

100%

Totals

$100,334

$8,361

Occupied

5

9,663

89.0%

Available

1

1,200

11.0%

$10.38

9,663

100.0%

Total Avg Rent

$45,810

$146,144 100.00%

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

4

E S TI MATED REIMBUR SEMEN T R EVEN U E Tenant

Suite

SQ FT

P LE ASANT R ID G E P LAZ A

% of

Real Estate Taxes

SQFT

Insurance

CAM

Management Fee

Total Recovery

Monthly

PSF

Monthly

PSF

Monthly

PSF

Monthly

PSF

Monthly

PSF

Austin Driving School

100

1,800

16.57%

$432

$2.88

$38

$0.25

$241

$1.61

$0

$0.00

$711

$4.74

Dance Studio

102

1,630

15.01%

$391

$2.88

$34

$0.25

$218

$1.61

$0

$0.00

$644

$4.74

Available

106

1,200

11.05%

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

Yafa Mediterranean Grill

112

984

9.06%

$236

$2.88

$21

$0.25

$132

$1.61

$0

$0.00

$389

$4.74

Nail Envy

114

675

6.21%

$162

$2.88

$14

$0.25

$90

$1.61

$0

$0.00

$267

$4.74

Payless Cleaners

116

4,574

42.11%

$1,098

$2.88

$97

$0.25

$612

$1.61

$0

$0.00

$1,807

$4.74

10,863

100%

$2,320

TOTALS

$205

$1,293

$0

$3,818

PROPERTY DESCRIPTION

5

L E A SE PROVIS ION S

Tenant

P LE ASANT R ID G E P LAZ A

Suite

Base Rental Increases

SQ FT

Renewal Options

Date

PSF

Options

Date

PSF

Austin Driving School

100

1,800

6/1/2020 6/1/2022

12.00 13.00

2x5

6/1/2024 6/1/2029

Mkt Mkt

Dance Studio

102

1,630

5/1/2021

13.00

1x3

11/1/2024

Mkt

Available

106

1,200

-

-

-

-

-

11.66 12.27 12.88 13.49

1x5

3/1/2025

Mkt

Yafa Mediterranean Grill

112

984

3/1/2020 3/1/2021 3/1/2023 3/1/2024

Nail Envy

114

675

-

-

-

-

-

Payless Cleaners

116

4,574

4/1/2020 4/1/2021 4/1/2022

7.52 7.82 8.13

1x5

6/1/2022

Mkt

TOTAL

10,863

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

6

I N VE S TMENT HI GHLI GHT S

P LE ASANT R ID G E P LAZ A

• K roger Shadow Anchored Center: Being strategically shadowed to a Nationally recognized Grocer, Pleasant Ridge Plaza benefits from crosstraffic exposure.

• G reat Redevelopment Opportunity: One of the current tenants is currently on month-to-month leases, while one space is available. This creates an opportunity for a new owner to repurpose those spaces and bring rents up to market for increased cash flow.

• B uilt-In Upside: 83% of the center has scheduled increases in their base rent, virtually guarantying an increased NOI over the first few years of ownership of the asset.

• B elow Market Rents: The average rental rate in the center is $10.38, while like-kind product in the immediate trade area is leasing from $16-$20 psf.

• E xceptional Demographics: The average household incomes within a 3-mile radius of the property is an impressive $100,262, which is well above the national average. Furthermore, the center is able to cater to the diversified needs of the immediate population by providing destination-based shops.

• E xtremely Dense Population: Currently, there is an outstanding 953,128 people living within a 5-mile radius of the center.

• H igh Growth Trade Area: Located in a highly dense retail corridor of South Arlington, the Property has benefited from significant population growth over the past ten years, with a 13.24% increase from 2010 to 2019 and a projected increase of 7.42% in the next four years.

PROPERTY DESCRIPTION

7

S I T E PL A N

P LE ASANT R ID G E P LAZ A

102

LE

RD

0

TT

106

112

114

10

LI

KROGER

(Not a Part)

116

RONNY SNOW DR

Suite

Tenant

SQ FT

100

Austin Driving School

1,800

102

Dance Studio

1,630

106

Izanna's Salon

1,200

112

Middle Eastern Restaurant

984

114

Nail Envy

675

116

Payless Cleaners

4,574

PROPERTY DESCRIPTION

8

A E R I AL MA P

TT LI

GR

EE

N

LE

OA K

RD

SB

LV D

P LE ASANT R ID G E P LAZ A

JAMES MARTIN HIGH SCHOOL

J.B. LITTLE ELEMENTARY SCHOOL

MILLER ELEMENTARY SCHOOL

17,046 VPD

LI

TT

LE

RD

13

,4

45

VP

D

P LE ASANT RI D G E RD

G

R

E

E

N

OA K

SB

LV D 36

,7 7

5V

PD

COREY ELEMENTARY SCHOOL

PROPERTY DESCRIPTION

9

A E R I AL MA P

P LE ASANT R ID G E P LAZ A

GE RD PLEASANT RID

D B LV EN O AKS

T

RD

GRE

LI

E TL

PROPERTY DESCRIPTION

10

L E A SE COMPA RABLES

Property

P LE ASANT R ID G E P LAZ A

GLA

Yr Built/ Renovated Occupancy

Major Tenants

Available SF

Rental Rates

NNN

0

NNN $7.23-$11.00 GROSS $15.00-$24.89

$4.74

Pleasant Ridge Plaza « 4004 Little Rd Arlington, TX 76016

10,863

1982

100.0%

Austin Driving School, Nail Envy, Payless Cleaners

5960 S Cooper Arlington, TX 76017

6,000

1997

100.0%

Two Tone Nails, Verizon Wireless, Glo Sun Spa

0

$15.00-$22.00

$8.00

16,490

2003

93.9%

Tan Spa, Edward Jones, Great Skin, Taekwondo, Kuman Math and Reading

1,000

$14.00-$24.00

$7.00

19,451

2010

100.0%

Papa Murphy's, Comet Cleaners, Subway, Nail Salon

0

$21.00-$27.00

$7.50

32,012

1985

100.0%

Tuesday Morning, GEICO, Everdance Studio, Lucky's Billiards

0

$11.00-$18.00

$5.00

1

Green Oaks Village 2 3851 Southwest Green Oaks Blvd Arlington, TX 76017 Gardens Town Center 4301 South Bowen Rd. 3 Arlington, TX 76016

Courtside Plaza 4 5920 W I-20 Arlington, TX 76017

#

#DIV/0!

6

#DIV/0!

PROPERTY DESCRIPTION

11

L E A SE COMPA RABLES

P LE ASANT R ID G E P LAZ A

Pleasant Ridge Plaza 1

5960 S Cooper

2

Green Oaks Village

3

Gardens Town Center

4

Courtside Plaza

3

4

2

1

PROPERTY DESCRIPTION

12

LO C AL MA P

P LE ASANT R ID G E P LAZ A

PROPERTY DESCRIPTION

13

REG IONA L MA P

P LE ASANT R ID G E P LAZ A

PROPERTY DESCRIPTION

14

M A R KET S U MMARY

P LE ASANT R ID G E P LAZ A

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 7,573,136 according to the U.S. Census Bureau’s 2019 population estimates. From 2010 to 2019, the DFW Metroplex had the largest numerical population growth of any MSA in the United States.

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 Cooperation and Development. The DFW Metroplex has one of the largest concentrations of corporate headquarters for publicly traded companies in the United States. As of 2020, the city of Dallas has 10 Fortune 500 companies, and the DFW region as a whole has 25.

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 MSA in the U.S. from 2010 to 2019 (U.S. Census Bureau)

4 5th 25

th

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

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

P LE ASANT R ID G E P LAZ A

3 Mile

5 Mile

10 Mile

2024 Projection

86,144

256,834

1,018,306

2019 Estimate

81,049

240,534

947,953

2010 Census

77,158

221,973

837,125

Population:

Growth 2019-2024

6.29%

6.78%

7.42%

Growth 2010-2019

5.04%

8.36%

13.24%

2019 Population Hispanic Origin

10,947

54,929

325,996

White

63,568

158,821

624,368

Black

10,092

62,412

234,395

546

1,706

8,910

4,624

11,576

55,606

88

285

1,664

2,131

5,734

23,010

50

77

404

2024 Projection

32,493

93,569

356,673

2019 Estimate

30,678

87,900

332,270

2010 Census

29,672

82,311

293,414

Growth 2019 - 2024

5.92%

6.45%

7.34%

2019 Population by Race:

Am. Indian & Alaskan Asian Hawaiian & Pacific Island Other U.S. Armed Forces:

Households:

Growth 2010 - 2019

3.39%

6.79%

13.24%

Owner Occupied

23,213

57,281

190,314

7,465

30,619

141,956

2019 Avg Household Income

Renter Occupied

$100,262

$79,480

$72,629

2019 Med Household Income

$80,847

$60,454

$54,917

<$25,000

2,643

16,490

70,105

$25,000 - $50,000

5,446

19,446

81,216 66,009

2019 Households by Household Inc:

$50,000 - $75,000

6,164

17,598

$75,000 - $100,000

4,639

10,785

39,117

$100,000 - $125,000

4,043

8,928

30,411

$125,000 - $150,000

2,498

4,702

15,328

$150,000 - $200,000

2,824

5,504

16,477

$200,000+

2,419

4,447

13,609

Demographic data © CoStar 2019

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: 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