Sherman Crossroads - Sherman, TX

SHERMAN CROSSROADS SHERMAN, TX

(SHERMAN–DENISON MSA)

2A C IN RES C

LU

of

DE LAN D! D

PRI CING & F INAN CI AL AN ALYSI S

SH E R M AN C R O SSR OAD S

Sherman Crossroads 2916 N US Hwy 75 Sherman,TX 75090

OFFERING SUMMARY Price Cap Rate Net Operating Income Price PSF Occupancy Year Built Gross Leasable Area Lot Size

$6,350,000 8.01% $508,799 $170.10 92.8% 2001 37,331 SF 5.88 Acres

Note: The price of the asset includes 2 acres of vacant land that are a future development opportunity.

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

PROJECTED INCOME & EXPENSES Base Rent - Occupied Space

100%

GROSS POTENTIAL RENT

SH E R M AN C R O SSR OAD S

EXPENSES

CURRENT

PSF

$531,330

$14.23

Real Estate Taxes

$531,330

$14.23

Insurance

PSF

$144,455

$3.87

$14,225

$0.38

CAM

Expense Reimbursements Real Estate Tax Recoveries Insurance Recoveries CAM Recoveries Management Recoveries Total Expense Reimbursements EFFECTIVE GROSS REVENUE

$121,203

$3.25

Electrical Maintenance

$619

$0.02

$11,935

$0.32

Property Maintenance

$17,162

$0.46

$50,490

$1.35

Roof Repairs

$4,022

$0.11

$11,583

$0.31

Electricity

$0

$0.00

$195,211

$5.23

Landscaping

$9,020

$0.24

$726,540

$19.46

Water & Sewer

$29,353

$0.79

$60,176

$1.61

$13,805

$0.37

$232,661

$6.23

Total CAM

Operating Expenses $144,455

$3.87

Management Fee

Total Insurance

$14,225

$0.38

Total Expenses

Total CAM

$60,176

$1.61

$13,805

$0.37

Total Recoverable Expenses

$232,661

$6.23

Net Operating Income

$493,879

$13.23

Total Real Estate Taxes

Management Fee

CURRENT

1.90%

1.90%

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

LOAN DETA ILS

SH E R M AN C R O SSR OAD S

EXISTING ASSUMABLE LOAN Purchase Price

$6,350,000

Loan Amount

$4,062,425

Equity to the Note

$2,287,575

Loan to Purchase Price Interest Rate Amortization Schedule Maturity Date Loan Constant Call Residual Percentage

64% 4.61% Fixed 30 Years 11/6/2024 6.16% 10 Years $0.80

NOI

$507,869

Annual Debt Service

$266,373

Clear Cash after DS

$241,496

Debt Service Coverage Ratio

1.91

Cap Rate

8.00%

Cash on Cash Return

10.56%

PROPERTY DESCRIPTION

4

RE NT RO L L

Tenant

SH E R M AN C R O SSR OAD S

Suite

SQ FT

% of SQFT

Lease Dates

Minimum Rent

Recoveries

Total

Start

End

Annual

Monthly

PSF

Annual

PSF

Revenue

% of Revenue

Reggis Liquors

100

2,872

7.69%

06/17

08/22

$68,928

$5,744

$24.00

$17,899

$6.23

$86,827

11.95%

Available

110

2,675

7.17%

-

-

$0

$0

$0.00

$0

$0.00

$0

0.00%

Southern Classic Daiquiri Factory

120

1,530

4.10%

09/21

11/24

$32,130

$2,678

$21.00

$9,536

$6.23

$41,666

5.73%

The Jewlers Bench

130

1,980

5.30%

07/11

06/26

$33,660

$2,805

$17.00

$12,340

$6.23

$46,000

6.33%

A+ Nails

200

1,100

2.95%

02/02

02/22

$24,750

$2,063

$22.50

$6,856

$6.23

$31,606

4.35%

Tokya Habashi Sushi

300

4,460

11.95%

02/03

01/23

$84,294

$7,025

$18.90

$27,796

$6.23

$112,090

15.43%

Absolute Tan

360

2,200

5.89%

10/02

06/22

$51,216

$4,268

$23.28

$13,711

$6.23

$64,927

8.76%

King Buffet

500

9,241

24.75%

03/12

09/22

$92,410

$7,701

$10.00

$57,593

$6.23

$150,003

20.65%

Armed Forved - US Army/Navy

550

3,334

8.93%

08/12

03/22

$105,254

$8,771

$31.57

$0

$0.00

$105,254

14.49%

G's Mind & Body Alterations

570

2,861

7.66%

04/14

03/22

$38,624

$3,219

$13.50

$17,831

$6.23

$56,454

7.77%

Puppy Dreams

600

5,078

13.60%

06/21

03/26

$14,980

$1,248

$2.95

$31,648

$6.23

$46,628

6.42%

Total Count/GLA

11

37,331

100%

Totals

$546,246

$45,521

$741,457

100.00%

Occupied

10

34,656

92.8%

Available

1

2,675

7.2%

$15.76

34,656

100.0%

Total Avg Rent

$195,211

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

5

E S TI MATED REIMBUR SEMEN T R EVEN U E

Tenant

Suite

SQ FT

% of SQFT

SH E R M AN C R O SSR OAD S

Real Estate Taxes

Insurance

CAM

Management Fee

Total Recovery

Monthly

PSF

Monthly

PSF

Monthly

PSF

Monthly

PSF

Monthly

PSF

Reggis Liquors

100

2,872

7.69%

$926

$3.87

$91

$0.38

$386

$1.61

$89

$0.37

$1,492

$6.23

Available

110

2,675

7.17%

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

Southern Classic Daiquiri Factory

120

1,530

4.10%

$493

$3.87

$49

$0.38

$206

$1.61

$47

$0.37

$795

$6.23

The Jewlers Bench

130

1,980

5.30%

$638

$3.87

$63

$0.38

$266

$1.61

$61

$0.37

$1,028

$6.23

A+ Nails

200

1,100

2.95%

$355

$3.87

$35

$0.38

$148

$1.61

$34

$0.37

$571

$6.23

Tokya Habashi Sushi

300

4,460

11.95%

$1,438

$3.87

$142

$0.38

$599

$1.61

$137

$0.37

$2,316

$6.23

Absolute Tan

360

2,200

5.89%

$709

$3.87

$70

$0.38

$296

$1.61

$68

$0.37

$1,143

$6.23

King Buffet

500

9,241

24.75%

$2,980

$3.87

$293

$0.38

$1,241

$1.61

$285

$0.37

$4,799

$6.23

Armed Forved - US Army/Navy

550

3,334

8.93%

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

G's Mind & Body Alterations

570

2,861

7.66%

$923

$3.87

$91

$0.38

$384

$1.61

$88

$0.37

$1,486

$6.23

Puppy Dreams

600

5,078

13.60%

$1,637

$3.87

$161

$0.38

$682

$1.61

$156

$0.37

$2,637

$6.23

37,331

100%

$10,100

Totals

$995

$4,207

$965

$16,268

PROPERTY DESCRIPTION

6

L E A SE PROVIS ION S

Tenant

SH E R M AN C R O SSR OAD S

Suite

SQ FT

Base Rental Increases

Renewal Options

Date

PSF

Options

Date

PSF

CAM Cap

CAM Cap Description

User Restrictions & Exclusive Rights

Sales Reporting

Reggis Liquors

100

2,872

-

-

2x5

9/1/2022 9/1/2027

26.00 28.00

-

-

-

-

Available

110

2,675

-

-

-

-

-

-

-

-

-

Southern Classic Daiquiri Factory

120

1,530

9/1/2020

19.82

-

-

-

-

-

-

-

The Jewlers Bench

130

1,980

-

-

-

-

-

-

-

-

Yes, Monthly

A+ Nails

200

1,100

-

-

-

-

-

-

-

Tokyo Habashi Sushi

300

4,460

-

-

-

-

-

-

-

-

Yes, Monthly

Absolute Tan

360

2,200

-

-

-

-

-

-

-

-

Yes, Monthly

King Buffet

500

9,241

-

-

2x5

9/28/2022 9/28/2027

12.00 MKT

-

-

-

Yes, Quarterly

Armed Forved - US Army/Navy

550

3,334

-

-

-

-

-

-

-

-

-

G's Mind & Body Alterations

570

2,861

4/1/2021

14.00

1x5

4/1/2022

MKT

Yes

5% cap on CAM

-

Yes, Annually

Puppy Dreams

600

5,078

4/1/2022 4/1/2024 4/1/2025

4.15 5.30 6.50

-

-

-

-

-

-

-

Totals

Exclusive nail salon Yes, Monthly

37,331

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

7

TE NA NT INF ORMAT I ON

SH E R M AN C R O SSR OAD S

Tenant

Tokyo Hibachi & Sushi

Corporate/Franchise

Corporate

Locations

1 Location

Public/Private

Private

Line of Business

Tokyo Hibachi & Sushi is a sushi restaurant that serves fresh sushi and hibachi dishes. The restaurant first opened in Sherman in 2002 and features a full-service cocktail and sushi bar alongside an interactive dining experience.

Tenant

King Buffet

Corporate/Franchise

Corporate

Locations

1 Location

Public/Private

Private

Line of Business

King Buffet is a spacious, standard buffet offering an all-you-can-eat buffet of sushi & PanAsian dishes. The restaurant also offers a Mongolian grill and sushi bar.

Tenant

Absolute Tan

Corporate/Franchise

Corporate

Locations

2 Locations

Public/Private

Private

Line of Business

Absolute Tan is a tanning salon that provides UV-tanning, versa sap spray tan booths, custom airbrush spray tans, tanning products, swim wear and AdvoCare products to the Sherman, TX and Gainesville, TX areas.

PROPERTY DESCRIPTION

8

I N VE S TMENT HI GHLI GHT S

SH E R M AN C R O SSR OAD S

• 92.8% Occupied Value-Add Multi-Tenant Center in Sherman, Texas • Significant Upside Potential — Two acres of land included for future development opportunity • Complementary, Internet-Resistant Tenant Mix • Exceptional Positioning — Directly across the street from Walmart Supercenter, shadow anchored by Ashley HomeStore • Situated in a High-Volume Retail Location — The Property sits at the crossroads of US Highway 82 and US Highway 75, Sherman’s primary retail hub.

Surrounding National Tenants Include Walmart Supercenter, Target, Lowe’s, Belk, Ross Dress for Less, Hobby Lobby, Ashley HomeStore, Sam’s Club, ALDI, Academy Sports + Outdoors, The Home Depot, Best Buy, Old Navy and Many, Many More • Excellent Roof & Warranty — The Owner recently completed a 60-mil thick TPO membrane overlay with 6+ years remaining on the warranty.

• High Growth Area: Over 50,000 People in a 5-Mile Radius — Nearly 16% Growth within a 3-Mile Radius since 2010 with another 10% Projected by 2025 • Assumable Non-Recourse Debt — Attractive, assumable non-recourse debt in-place at 4.61% interest rate with a cash-on-cash return of 9.26%.

• High Traffic Counts and Visibility — Located at the southwest quadrant of US-75 and US-82, where over 75,000 vehicles pass by the property daily.

Additionally, the property boasts a distinct 50-foot pylon sign at the southbound US-75 entrance ramp.

PROPERTY DESCRIPTION

9

S I T E PL A N

SH E R M AN C R O SSR OAD S

VALERO

CATRINA’S COCINA

NOT A PART

NOT A PART

ASHLEY HOMESTORE NOT A PART

STARBUCKS NOT A PART

SHERMAN CROSSROADS

LA QUINTA INN NOT A PART

HOLIDAY INN EXPRESS NOT A PART

PROPERTY DESCRIPTION

10

A E R I AL MA P

,0 4

4V

PD

SH E R M AN C R O SSR OAD S

14 ,6

99

VP

D

75

MIDWAY MALL

TE

XO M

A

PK

W

Y

SHERMAN TOWN CENTER

3 4 , 91

5 VP

D

FAIRVIEW ELEMENTARY SCHOOL

AUSTIN COLLEGE

PROPERTY DESCRIPTION

11

A E R I AL MA P

SH E R M AN C R O SSR OAD S

SITE

PROPERTY DESCRIPTION

12

LO C AL MA P

SH E R M AN C R O SSR OAD S

PROPERTY DESCRIPTION

13

REG IONA L MA P

SH E R M AN C R O SSR OAD S

Sherman

PROPERTY DESCRIPTION

14

M A R KET S U MMARY

SH E R M AN C R O SSR OAD S

Sherman–Denison, TX

OVERVIEW The Sherman–Denison Metropolitan Statistical Area, is an area consisting of one county, Grayson, in North Texas, which is anchored by the cities of Sherman and Denison. As of 2019, the MSA had an estimate population of 136,212. The Sherman–Denison Metropolitan Statistical Area is a component of the Dallas–Fort Worth Combined Statistical Area, which covers a 19-county area and had an estimated population of over 7.5 million people. The Sherman– Denison MSA is also a major part of the Texoma region with proximity to both Lake Texoma and the Red River.

Located near the Texas-Oklahoma border on the Red River, Sherman-Denison is approximately 60 miles north of Dallas and 140 miles southeast of Oklahoma City. Sherman sits at the intersection of U.S. Route 75, a major north–south U.S. Highway that extends 1,239 miles in the central United States, and U.S. Route 82, an east–west U.S. highway extending from the White Sands of New Mexico to Georgia’s Atlantic coast.

In 1938, construction of a dam on the Red River

was authorized by the U.S. Congress. The dam, now known as Denison Dam, formed Lake Texoma, which is used for recreation, irrigation, and electrical power generation. Lake Texoma is one of the largest reservoirs in the United States, and a major attraction of the area. Lake Texoma is also home to the Lakefest Regatta, widely considered to be the first inland charity regatta in the United States.

The economy of the Sherman–Denison MSA is anchored by a number of S&P 500 Components.

Tyson Foods, Texas Instruments and Cigna all operate out of the area. Sherman-Denison is also home to two institutes of higher education, Austin College in Sherman and Grayson College in Denison.

Additionally, President Dwight D. Eisenhower was born in Denison, Texas on October 14, 1890, the first United States President to be born in Texas. The Eisenhower Birthplace State Historic Site has been turned into a historical museum in Denison and is a very popular tourism site in the area.

PROPERTY DESCRIPTION

15

D E M OG RA PHIC STAT I ST I CS

SH E R M AN C R O SSR OAD S

3 Mile

5 Mile

10 Mile

2025 Projection

35,935

55,390

97,302

2020 Estimate

32,948

50,627

89,153

2010 Census

29,129

43,762

78,441

Growth 2020-2025

9.07%

9.41%

9.14%

Growth 2010-2020

13.11%

15.69%

13.66%

2020 Population Hispanic Origin

8,052

11,159

14,900

White

26,430

41,367

74,855

Black

Population:

2020 Population by Race: 3,965

5,356

7,952

Am. Indian & Alaskan

535

873

1,745

Asian

881

1,327

1,754

Hawaiian & Pacific Island

40

55

97

1,097

1,648

2,751

48

73

97

2025 Projection

13,817

21,378

37,681

2020 Estimate

12,670

19,538

34,535

2010 Census

11,226

16,906

30,501

Other U.S. Armed Forces:

Households:

Growth 2020 - 2025

9.05%

9.42%

9.11%

Growth 2010 - 2020

12.86%

15.57%

13.23%

Owner Occupied

6,894

11,093

21,994

Renter Occupied

5,776

8,445

12,540

2020 Avg Household Income

$60,748

$63,349

$65,436

2020 Med Household Income

$47,789

$48,562

$49,722

<$25,000

2,949

4,330

7,418

$25,000 - $50,000

3,807

5,871

9,976

$50,000 - $75,000

2,537

3,782

6,619

2020 Households by Household Inc:

$75,000 - $100,000

1,580

2,463

4,622

$100,000 - $125,000

731

1,195

2,360

$125,000 - $150,000

249

461

802

$150,000 - $200,000

541

939

1,766

$200,000+

277

497

971

Demographic data © CoStar 2020

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 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