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SHERMAN CROSSING SHERMAN, TX (DFW MSA)


PRICING & FINANCIAL ANALYSIS

SH E R M AN C R O SSING

Sherman Crossing 2918 N US HWY 75 Sherman, TX 75090

OFFERING SUMMARY Price Cap Rate

$1,799,000 6.25%

Net Operating Income

$112,464

Price PSF

$426.20

Occupancy Year Built Roof Gross Leasable Area Lot Size

100.0% 2001 Replaced 2015 4,221 SF 0.83 Acres

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

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I N VE S TMENT HI GHLI GHT S

SH E R M AN C R O SSING

• Starbucks: Located at the Property for 15-years and is currently undergoing a major renovation. We are told this is one of the strongest performing locations in the region. • Strong Location: Located in the heart of the Sherman retail corridor. The asset is at “Main and Main” at the intersection of US 75 and US 82. • Access and Visibility: Excellent visibility to over 105,000 vehicles daily, at the southwest intersection of US 75 and US 82. The Property has 4 points of entry as well as cross access with neighboring properties and includes a 50 foot pylon sign. • National Tenancy: Sherman Crossing’s tenant lineup is comprised of all nationally recognized retailers including Starbucks, Papa John’s, and Cricket Wireless. • Built-In Upside: 100% of the current tenants have contractual rental escalations structured in their leases virtually guaranteeing future income growth over the next several years. • New Roof: Sherman Crossing’s roof was completely replaced in 2015 with a new TPO roof. The new roof includes a 15-year warranty. • New HVAC: New 12.5 ton AC Unit. PROPERTY DESCRIPTION

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PRICING & FINANCIAL ANALYSIS

SH E R M AN C R O SSING

PROJECTED INCOME & EXPENSES Base Rent - Occupied Space

CURRENT 100%

GROSS POTENTIAL RENT

PSF

EXPENSES

CURRENT

PSF

$114,342

$27.09

Real Estate Taxes

$27,597

$6.54

$114,342

$27.09

Insurance

$7,000

$1.66

$1,600

$0.38

Expense Reimbursements

CAM

CAM Recoveries

$23,800

$5.64

Repair & Maintenance

Management Fee Recoveries

$3,406

$0.81

Utilities

$14,400

$3.41

Insurance Recoveries

$7,000

$1.66

Landscaping

$7,800

$1.85

Real Estate Tax Recoveries

$27,597

$6.54

$23,800

$5.64

Total Expense Reimbursements

$61,804

$14.64

Management Fee

$5,284

$1.25

$176,146

$41.73

Total Expenses

$63,682

$15.09

$23,800

$5.64

$5,284

$1.25

$7,000

$1.66

Total Real Estate Taxes

$27,597

$6.54

Total Recoverable Expenses

$63,682

$15.09

Net Operating Income

$112,464

$26.64

EFFECTIVE GROSS REVENUE

Total CAM 3.00%

Operating Expenses Total CAM Management Fee Total Insurance

3.00%

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

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RE NT RO L L

Tenant

SH E R M AN C R O SSING

SQ FT

Suite

% of SQFT

Lease Dates

Minimum Rent

Recoveries

Total

Start

End [1]

Annual

Monthly

PSF

Annual

PSF

Revenue

% of Revenue

Starbucks (with Drive Through)

200

1,500

35.54%

03/03

03/23

$62,340

$5,195

$41.56

$20,752

$13.83

$83,092

47.17%

Cricket Wireless

150

1,212

28.71%

08/16

08/21

$23,331

$1,944

$19.25

$18,285

$15.09

$41,616

23.63%

Papa Johns

100

1,509

35.75%

11/15

11/20

$28,671

$2,389

$19.00

$22,766

$15.09

$51,437

29.20%

Total Count/GLA

3

4,221

100%

$176,146

100.00%

Occupied

3

4,221

100.0%

Available

0

0

0.0%

Total Avg Rent

$27.09

4,221

100.0%

$114,342

$61,804

[1] Starbucks is negotiating for a 5 year extension beyond their current term due to the capital improvements they are spending on the space. This would take their expiration to 3/31/2028.

ESTIMATED REIMBURSEMENT REVENUE

Tenant

Suite

SQ FT

% of SQFT

CAM

Management Fee

Insurance

Real Estate Taxes

Total Recovery

Monthly

PSF

Monthly

PSF

Monthly

PSF

Monthly

PSF

Monthly

PSF

Starbucks (with Drive Through)

200

1,500

35.54%

$705

$5.64

$0.00

$0.00

$207

$1.66

$817

$6.54

$1,729

$13.83

Cricket Wireless

150

1,212

28.71%

$569

$5.64

$126

$1.25

$167

$1.66

$660

$6.54

$1,524

$15.09

Papa Johns

100

1,509

35.75%

$709

$5.64

$157

$1.25

$209

$1.66

$822

$6.54

$1,897

$15.09

4,221

100%

$1,983

TOTALS

$284

$583

$2,300

$5,150

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

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LEASE PROVISIONS

Tenant

Starbucks

Cricket Wireless

Papa Johns

TOTAL

Suite

200

150

100

SH E R M AN C R O SSING

SQ FT

Base Rental Increases

Renewal Options

User Restrictions & Exclusive Rights

Termination Rights [1]

Sales Reporting

Date

PSF

Options

Date

PSF

1,500

4/1/2018

$41.56

3x5

4/1/2023 4/1/2028 4/1/2033

$45.72 $50.29 $55.32

Tenant has exclusive right to sell ground coffee, expresso or coffee based drinks in the center.

Tenant has the right of early termination on 3/31/2020. Must give the LL 180 Days Notice

No

1,212

8/3/2018 8/3/2019 8/3/2020

$19.25 $19.64 $20.03

2x5

8/3/2021 8/3/2026

10% Per Option or MKT Rate whichever is greater

LL will not lease to any other tenant whose primary business is communication products

26.32 - Tenant has a one time economic termination right if after 36 months the gross sales are less than $204,000 in Year three.

Yes

2x5

12/1/2020 12/1/2021 12/1/2022 12/1/2023 12/1/2024 12/1/2025 12/1/2026 12/1/2027 12/1/2028 12/1/2029

$20.50 $21.00 $21.50 $22.00 $22.50 $23.00 $23.50 $24.00 $24.50 $25.00

-

Yes - At LL request tenant will report sales but limited to only three requests annually

1,509

11/16/2018 11/16/2019

$19.50 $20.00

LL will not lease to any other tenant whose primary business is the sale of pizza

4,221

[1] This may be a moot point for Starbucks due to their expressed interest in exercising one 5 year option early.

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

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TE NA NT INF ORMAT I ON

SH E R M AN C R O SSING

DBA

Starbucks

Entity on Lease

Starbucks Corporation

Corporate/Franchise

Corporate

Locations

24,400+ Worldwide

Credit Rating

S&P: A

Public/Private

SBUX; NASDAQ

Line of Business

Starbucks Corporation is an American coffee company and coffeehouse chain. Starbucks was founded in Seattle, Washington in 1971. Today it operates 23,768 locations worldwide. Starbucks locations serve hot and cold drinks, whole-bean coffee, microground instant coffee, espresso, caffe latte, full- and loose-leaf teas, pastries, and snacks including pre-packaged food items, hot and cold sandwiches, and drinkware.

DBA

Cricket Wireless

Entity on Lease

Mobilelink West LLC

Corporate/Franchise

Franchise

Locations

450+ Nationwide

Credit Rating

Not Rated

Public/Private

NYSE: T

Line of Business

Cricket Wireless LLC is an American prepaid wireless service provider in the United States with over 1,300 locations. Cricket Wireless is a wholly owned subsidiary of AT&T Inc. that offers mobile voice, text, and data. Cricket offers a variety of rate plans that include data allowance with plans starting at $30 for 2GB of full-speed data.

DBA

Papa John’s

Entity on Lease

Hemani Capital

Corporate/Franchise

Franchise

Credit Rating

Not Rated

Public/Private

NASDAQ; PZZA

Line of Business

Papa John’s is the third largest take-out and pizza delivery chain in the United States. Papa John’s prides themselves on using fresh ingredients and never-frozen pizza dough. Currently there are over 4,700 Papa John’s restaurants operating in all 50 U.S. states and in 30 other countries.

PROPERTY DESCRIPTION

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S I T E PL A N

SH E R M AN C R O SSING

PROPERTY DESCRIPTION

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A E R I AL MA P

SH E R M AN C R O SSING

N

75,044 VPD

SHERMAN TOWN CENTER

26,31 3

VPD

PROPERTY DESCRIPTION

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LO C AL MA P

SH E R M AN C R O SSING

PROPERTY DESCRIPTION

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REG IONA L MA P

SH E R M AN C R O SSING

PROPERTY DESCRIPTION

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M A R KET S U MMARY

SH E R M AN C R O SSING

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

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D E M OG RA PHIC STAT I ST I CS

SH E R M AN C R O SSING

Radius

1 Mile

3 Mile

5 Mile

3,912 3,696 3,309 5.84% 11.70% 542

32,696 31,091 28,909 5.16% 7.55% 7,005

49,480 46,975 43,269 5.33% 8.57% 9,681

2,992 466 52 85 0 102 4

25,159 3,718 515 678 29 991 11

38,708 4,962 836 983 40 1,446 11

1,614 1,524 1,366 5.91% 11.57% 704 819 $45,171 $32,870

12,659 12,023 11,144 5.29% 7.89% 6,537 5,487 $58,657 $42,412

19,214 18,218 16,718 5.47% 8.97% 10,391 7,828 $62,233 $44,055

627 435 176 173 35 29 38 12

3,680 3,285 1,684 1,655 639 365 435 279

5,188 4,969 2,549 2,465 1,060 728 751 507

Population: 2022 Projection 2017 Estimate 2010 Census Growth 2017-2022 Growth 2010-2017 2017 Population Hispanic Origin

2017 Population by Race: White Black Am. Indian & Alaskan Asian Hawaiian & Pacific Island Other U.S. Armed Forces:

Households: 2022 Projection 2017 Estimate 2010 Census Growth 2017 - 2022 Growth 2010 - 2017 Owner Occupied Renter Occupied 2017 Avg Household Income 2017 Med Household Income

2017 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 2017

PROPERTY DESCRIPTION

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CONFIDENTIALITY AGREEMENT The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from STRIVE and it should not be made available to any other person or entity without the written consent of STRIVE. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to STRIVE. This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. STRIVE has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenantâ&#x20AC;&#x2122;s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, STRIVE has not verified, and will not verify, any of the information contained herein, nor has STRIVE conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT STRIVE AGENT FOR MORE DETAILS.


Commercial Disclaimer STRIVE hereby advises all prospective purchasers of commercial property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, STRIVE has not and will not verify any of this information, nor has STRIVE conducted any investigation regarding these matters. STRIVE makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a commercial property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. STRIVE expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a commercial property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any commercial property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenants and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenants history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term leases, including the likelihood of locating replacement tenants if any of the current tenants should default or abandon the property, and the lease terms that Buyer may be able to negotiate with any potential replacement tenants considering the location of the property, and Buyer’s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release STRIVE and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this commercial property.


Information About Brokerage Services

Texas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords. TYPES OF REAL ESTATE LICENSE HOLDERS: • A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker. • A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker. A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): • Put the interests of the client above all others, including the broker’s own interests; • Inform the client of any material information about the property or transaction received by the broker; • Answer the client’s questions and present any offer to or counter-offer from the client; and • Treat all parties to a real estate transaction honestly and fairly. A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION: AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner’s agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner’s agent must perform the broker’s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer’s agent. AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant’s agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer’s agent must perform the broker’s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by th e seller or seller’s agent. AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. A broker who acts as an intermediary: • Must treat all parties to the transaction impartially and fairly; • May, with the parties’ written consent, appoint a different license holder associated with the broker to each party (owner and • buyer) to communicate with, provide opinions and advice to, and carry out the instructions of each party to the transaction. • Must not, unless specifically authorized in writing to do so by the party, disclose: ӽӽ that the owner will accept a price less than the written asking price; ӽӽ that the buyer/tenant will pay a price greater than the price submitted in a written offer; and ӽӽ any confidential information or any other information that a party specifically instructs the broker in writing not to disclose, unless required to do so by law. AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: • The broker’s duties and responsibilities to you, and your obligations under the representation agreement. • Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated. LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker’s services. Please acknowledge receipt of this notice below and retain a copy for your records.

Regulated by the Texas Real Estate Commission

Information available at www.trec.texas.gov IABS 1-0


exclusively listed 469.844.8880 | STRIVERE.COM

Sherman Crossing – Sherman, TX  
Sherman Crossing – Sherman, TX