FRISCO, TX
WE ARE EXCITED TO ANNOUNCE THE MERGER OF
Pierson Retail Advisors and the Vitorino Group announce they have entered into a definitive agreement to merge and combine their operations. Together, Pierson and Vitorino have sold nearly $3 billion in commercial real estate. The new firm will be called Strive.
Start of 10-Year Analysis: July 2017
7 Notes: Suite B-1190
Three 5-year options at $29.77 per annum w/ 5% bump every 2.5 years on first option. Second and third option at FMV Tenant specific NNN
Two 5-year options at $16.00
Mellow Mushroom Home Grown Industries, Inc., dba Mellow Mushroom Pizza Bakers is a restaurant chain that was established in Atlanta, Georgia as a single pizzeria in 1974. Mellow Mushroom restaurants specialize in pizza, but they also serve calzones, hoagies, salads, appetizers, and a wide beer selection.
Smoothie King’s mission is to make living a healthier more active lifestyle delicious and nutritious. They blend smoothies for a variety of purposes -- weight loss, added energy, diet supplementation, etc. As their menu has grown, so has their following. Since 1989, Smoothie King has been named #1 franchise in our category by Entrepreneur Magazine, 20 times.
Rocky Mountain Chocolate Factory is an international franchisor, confectionery manufacturer and retail operator in the United States, Canada and the United Arab Emirates. The Company is based in the charming historical town of Durango located on the western slope of the Rocky Mountains in southwestern Colorado. Their products include many varieties of clusters, caramels, creams, meltaways, truffles and molded chocolates. T enan
Retail Concepts, Inc. (“RCI”), d/b/a Sun & Ski offers gear – including apparel, footwear, food supplies, electronic equipment and more – for snow sports, water sports, skating, running, cycling, and camping.
DXL is a unique, all-inclusive superstore that offers one of the most extensive assortments of XL men’s clothing and shoes available anywhere. This “one-stop-shop” concept is designed to make the shopping experience more convenient and enjoyable. From value-priced private labels to highend designer names, DXL offers thousands of styles in the widest range of sizes.
Weight Watchers International is an American company that offers various products and services to assist weight loss and maintenance. it now operates in about 30 countries around the world, generally under names that are local translations of “Weight Watchers”. The core philosophy behind Weight Watchers programs is to use a science-driven approach to help participants lose weight by forming helpful habits, eating smarter, getting more exercise and providing support.
www.destinationxl.com
Interstate Batteries markets automotive batteries manufactured by Johnson Controls and others through independent distributors. The company also markets marine/RV, mobility, motorcycle, lawn and garden, and other lines of batteries in the starting, lighting and ignition (SLI) markets. Interstate Batteries operates a distributor network that supplies batteries and power solutions to over 200,000 dealers.
The Vitamin Shoppe (formerly Vitamin Shoppe Industries, Inc., stylized as theVitaminShoppe) is an American, New Jersey-based retailer of nutritional supplements. The company provides approximately 8,000 different SKUs of supplements through its retail stores and over 20,000 different SKUs of supplements through its retail websites.
Toys “R” Us, Inc. is an American toy and juvenile-products retailer founded in 1948 and headquartered in Wayne, New Jersey, in the New York City metropolitan area. The company owns or licenses 866 Toys “R” Us and Babies “R” Us stores in the United States and Puerto Rico, more than 750 international stores and more than 245 licensed stores in 37 countries and jurisdictions.
Patel Brothers is a U.S. based grocery retail chain that focuses on flavors and foods found in in the Indian sub-continent and the Middle East. Patel Brothers offer a full line of groceries including dry goods, frozen items and fresh produce.
Fuddruckers is an American fast casual, franchised restaurant chain that specializes in hamburgers. The Fuddruckers concept is to offer large hamburgers in which the meat is ground on-site and buns are baked on the premises. As of 2015, Fuddruckers had 77 company-operated restaurants and 111 franchises.
Vitorino Group and Pierson Retail Advisors are pleased to offer Shops at Stonebriar (“Property”) a +/- 181,371 square foot neighborhood retail center located at the southwest corner of Preston Road and Gaylord Parkway in the city of Frisco, Texas. Comprised of five retail buildings, the Property is shadow to Stonebriar Centre mall, a 1.5M square foot regional mall anchored by Nordstrom, Macy’s, and AMC Theaters among others. Shops at Stonebriar is currently 98.6% occupied by a mix of national, regional and local tenants including Toys R Us, Sun & Ski Sports, Casual Male XL, Vitamin Shoppe, Weight Watchers, and Smoothie King, to name a few. This quality asset benefits from its position in the heart of the retail hub in Frisco.
The city of Frisco is in the high growth trade area of North Central Dallas and has experienced an incredible 39.5% growth in a one mile radius over the past five years with an additional 16.8% growth projected over the next five years. This rate of growth is rarely seen anywhere else in the nation. Shops at Stonebriar provides an investor the opportunity to acquire a well-positioned, stabilized shopping center within an affluent, desirable community within the Dallas MSA.
Stonebriar Centre: Stonebriar Centre, the #2 mall (based on sales volumes) in Dallas Fort Worth, is one of the premier shopping destinations in the Metroplex. Featuring major stores such as Nordstrom, Macy’s and Dillard’s, the mall also offers family activities such as a carousel, westernthemed kids play area as well as a 24-screen AMC Theatre movie complex complete with an IMAX-theatre experience. Furthermore, plans are underway for a new Hyatt Regency Hotel in the Stonebriar Centre to open in 2018. This luxury hotel will have 15 floors, 295 guest rooms plus 50,000 square feet of meeting space.
Structured Rent Increases: Leases have been structured with base rent increases in 35% of the tenants’ leases virtually guaranteeing future income growth over the next several years. By the end of 2018, an investor could capture an additional $374,692 of annual contractual rent.
The Property has attractive, assumable non-recourse debt in-place with 5.152% interest rate and approximately seven years remaining on a 10-year term. Furthermore, if necessary the seller is prepared to carry-back additional debt at the same terms for a buyer to reach a 65% LTV.
National Tenancy & Longevity: National tenants make up 56.9% of the asset’s tenant line up. This dynamic tenant base includes Toys R Us, Sun & Ski Sports, The Vitamin Shoppe, Fuddruckers, Smoothie King and Mellow Mushroom to name a few. Furthermore, more than 81% of the current tenants have been at the Property for more than five years and 59.6% of the national tenant base has been at Shops at Stonebriar for 12 years or more.
High Growth Trade Area with Outstanding Demographics: Shops at Stonebriar benefits from its location within the affluent, high growth Frisco trade area. Presently, within a three mile radius of the Property there are 97,500 residents increasing to 262,395 residents within five miles. Additionally, the population base has average annual incomes of $125,819 and $129,465 within a three and five mile radius, respectively. Furthermore, over the last five years this trade area has seen an incredible 21.3% growth on average within five miles. This pattern is expected to continue over the next five years with projections averaging 12.6% growth. The Property’s surrounding demographics continue to provide stability for the Property and its trade area well into the future.
$5 Billion Mile: Frisco is home to one of the most dynamic development concentrations in America with more than $5 billion in capital investments. Within a one-mile stretch of road along the Dallas North Tollway, four mixed-use developments have been announced or under construction between Warren Parkway and Lebanon Road which is less than 2.5 miles west of Shops at Stonebriar.
Location, Location, Location: Shops at Stonebriar is situated in the desirable city of Frisco, Texas. Located approximately 25 miles north of downtown Dallas, Frisco is a 20-minute drive from both DFW International Airport and Dallas Love Field Airport. The nearby Dallas North Tollway and Sam Rayburn Tollway (SH-121) as well as the desirable Preston Road (Hwy 289) connect Frisco to affluent and fast growing areas in Dallas, Plano, and McKinney, to name a few. The asset benefits from its location 1/2 mile north of Legacy Business Park, with a daytime population of more than 50,000 people.
Tremendous Exposure with High Traffic Counts: The Property is situated at the southeast corner of Preston Road and Gaylord Parkway and is less than a half mile from both SH 121 and Dallas North Tollway. This positioning provides Shops at Stonebriar exposure to more than 91,000 vehicles per day at this signalized intersection. Furthermore, the Property benefits from more than 113,500 vehicles travelling daily along SH 121 (Sam Rayburn Tollway), a major connector in the northern portion of the DFW Metroplex. Dallas North Tollway connects Frisco and surrounding suburbs with the Dallas CBD, carrying more than 93,700 vehicles per day.
• Fastest Growing Cities & Job Growth (#1) - WalletHub.com - October 2016
• Best Real-Estate Markets (#1) - WalletHub.com - September 2016
• The 10 Most Successful Cities in America (#1) - Zippia.com - August 2016
• Western City with Lowest Property Crime Rates - Safeco.com - August 2016
• Best Cities for Texas Families (#6) - WalletHub.com - July 2016
• Most Mobile-Friendly Cities in the U.S. (#1) - BuzzBoard.com - January 2016
• Top 10 Cities with Highest Holiday Budgets (#3) - WalletHub.com - December 2015
• Best Cities to Start a Restaurant (#6) - NerdWallet.com - August 2015
• Best Places to Live in Texas (#3) - NerdWallet.com - June 2015
• Best Mid-Sized Cities for Education (#2) - Movoto.com - January 2015
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 20.
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.
In the identified area, the 2016 population was 262,395. The rate of change since 2000 was 79.81%. The five-year projection for the population in the area was 289,469 representing a change of 10.32% from 2016 to 2021. The population was 48.7% male and 51.3% female. The median age in this area was 36.5, compared to the U.S. median agoe of 38.0.
There were 97,783 households in your selected georgraphy in 2016. The number of households changed by 88.73% since 2000. It is estimated that the number of households in your area will be 107,819 in 2021, which represents a change of 10.26% in five years. The average household size in your area was 2.68 persons.
In 2016, the median household income for your selected geography was $102,977, compared to the entire U.S. average, which was $54,149. It is estimated that the median household income in your area will be $107,693 in 2021, which represents a change of 4.58% from 2016.
The per capita income in your area was $48,306, compared to the entire U.S. average, which was $29,472. The 2016 average household income in your area was $129,465, compared to the entire U.S. average, which was $77,008.
Race and etHnicity
The 2016 racial makeup of your selected area was as follows: 64.5% White, 7.9% Black, 0.4% Native American and 20.7% Asian/Pacific Islander. Compare these to the entire U.S. averages which were: 71.60% White, 12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander.
People of Hispanic origin are counted independently of race. People of Hispanic origin made up 11.5% of the 2016 population in your selected area. Compare this to the entire U.S. average of 17.9%.
In 2016, there were 60,378 owner occupied housing units in your area, and there were 37,405 renter occupied housing units in your area. Median home value in the area was $285,577, compared to a median home value of $198,891 for the U.S.
In 2016, there were 137,905 employees in your selected area, this is also known as the daytime population. 83.0% of employees were employed in white-collar occupations in this geography, and 7.1% were employed in blue-collar occupations. In 2016, unemployment in this area was 3.4%.
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 Vitorino Group and it should not be made available to any other person or entity without the written consent of Vitorino Group. 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 Vitorino Group.
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. Vitorino Group 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, Vitorino Group has not verified, and will not verify, any of the information contained herein, nor has Vitorino Group 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 THE VITORINO GROUP AGENT FOR MORE DETAILS.
Vitorino Group hereby advises all prospective purchasers of Net Leased property as follows:
The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, the Vitorino Group has not and will not verify any of this information, nor has the Vitorino Group conducted any investigation regarding these matters. The Vitorino Group makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.
As the Buyer of a net leased 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. The Vitorino Group 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 net leased 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 net leased 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 tenant 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 tenant 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 lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant 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 The Vitorino Group and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.
Approved by the Texas Real Estate Commission for Voluntary Use Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.
Before working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner’s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer’s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly.
IF THE BROKER REPRESENTS THE OWNER:
The broker becomes the owner’s agent by entering into an agreement with the owner, usually through a written - listing agreement, or by agreeing to act as a subagent by accepting an offer of subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner’s agent anything the buyer would not want the owner to know because an owner’s agent must disclose to the owner any material information known to the agent.
IF THE BROKER REPRESENTS THE BUYER:
The broker becomes the buyer’s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer’s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer’s agent anything the owner would not want the buyer to know because a buyer’s agent must disclose to the buyer any material information known to the agent.
IF THE BROKER ACTS AS AN INTERMEDIARY:
A broker may act as an intermediary between the parties if the broker complies with The Texas Real Estate License Act. The broker must obtain the written consent of each party to the transaction to act as an
intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermediary in a transaction:
(1) shall treat all parties honestly;
(2) may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner;
(3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and
(4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property.
With the parties’ consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party.
If you choose to have a broker represent you, you should enter into a written agreement with the broker that clearly establishes the broker’s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding.
Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records.