Snuffers-La Ventana - Addison, TX

ADDISON, TX (DALLAS MSA)

PRI CING & F INAN CI AL AN ALYSI S

SNU F F E R ’ S/LA V E NTANA - AD D ISO N, T X

Snuffer ’s & La Ventana 4180 Belt Line Rd Addison, TX 75001

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

ANNUALIZED OPERATING DATA $4,805,000

Commencement

Annual

Increase

1-5

3/1/2019

$288,307

-

6-10

3/1/2024

$317,138

10.00%

Option 1: 11-15

3/1/2029

$348,852

10.00%

7,941 SF

Option 2: 16-20

3/1/2034

$383,737

10.00%

1.61 Acres

Option 3: 21-25

3/1/2039

$422,110

10.00%

6.00% $288,307 1993

Year(s)

NET OPERATING INCOME

$288,307

LEASE SUMMARY Lease Term

10 Years

Lease Commencement

3/1/2019

Lease Expiration

2/28/2029

Remaining Term

10 Years

Lease Type Roof & Structure Increases Options Options to Purchase

NNN Tenant 10% Every Five Years 3 x 5 Year None

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

SNU F F E R ’ S/LA V E NTANA - AD D ISO N, T X

Snuffer ’s & La Ventana 4180 Belt Line Rd Addison, TX 75001

Suite

Tenant

SQ FT

% of SQFT

Start

End

Annual Rent

PSF

Escalation Date

Escalation Amount

Options

Lease Type

100

Snuffer's

5,600

70.5%

3/1/2019

2/28/2029

$150,553

$26.88

2/1/2024

$29.57

3x5

NNN

200

Taqueria La Ventana

2,341

29.5%

3/1/2019

2/28/2029

$137,754

$58.84

2/1/2024

$64.73

3x5

NNN

7,941

100.0%

$288,307

$36.31

0

0.0%

7,941

100.0%

Occupied Vacant Total

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

3

TE NA NT OVERV I EW

SNU F F E R ’ S/LA V E NTANA - AD D ISO N, T X

COMPANY SUMMARY

Renowned for legendary burgers & original cheddar fries, Snuffer’s has been a Dallas institution since 1978. Renowned for their signature menu of legendary burgers and famous original cheddar fries, Snuffer’s prides itself in fresh, scratch-made products throughout their kitchens.

Company

Snuffer’s

Ownership

Private

Number of Locations

11

Years in Business

40 Years

Headquarters

Dallas, TX

Website

snuffers.com

COMPANY SUMMARY

Taqueria La Ventana (translates to “the window”) is a funky, fast-casual taqueria offering everyday, authentic Mexico City street food. Their traditional street-style fare will transport you south-of-the-border through a culinary and cultural experience. It began with a simple street taco - a small, agile taco that adapts to life on the go and makes up for its small size with amazing, fresh flavor.

Company

Taqueria La Ventana

Ownership

Private

Number of Locations

4

Years in Business

6 Years

Headquarters

Dallas, TX

Website

taquerialaventana.com

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

4

I N VE S TMENT HI GHLI GHT S

• New 10 Year Absolute Net Lease - No Landlord Responsibilities and Ease of Management

SNU F F E R ’ S/LA V E NTANA - AD D ISO N, T X

SNAPSHOT

• 10% Rent Increase Every Five Years with Three Five Year Options • Densely Populated Area - Nearly 340,000 People in a 5 Mile Radius with a 9.82% Projected Increase in the Next 5 Years • Traffic Counts Along Belt Line Rd Exceed 59,100 Vehicles Per Day and 42,800 Vehicles Per Day Along Midway Rd • Great Visibility on Belt Line Rd in Addison TX Along Restaurant Row - Adjacent to Addison Grove, a New Class ‘A’ Mixed-Use Development With 161 Townhomes, 350 Multifamily Apartments and 1.25 Acres Dedicated to Public Open Space

Estimated Vehicles Per Day

Average Household Income

59,116

$93,467

Projected Population Growth 2018-2023

Population: 5 Mile Radius

9.82%

413,862

• Snuffer’s - Well Known Local Credit Tenant Operating in DFW for Over 40 Years • Taqueria La Ventana – New Street Taco Concept From the Same Operator as El Fenix and Snuffer’s • High Growth Area - Nearly 22% Population Growth in the Last Several Years • Surrounding National Retailers Include Staples, Walmart, Best Buy, Office Depot, Whole Foods, Chick-Fil-A, Starbucks, Taco Cabana, Subway, McDonald’s, Chipotle, T-Mobile, Spec’s and Many More

PROPERTY DESCRIPTION

5

I N VE S TMENT HI GHLI GHT S

SNU F F E R ’ S/LA V E NTANA - AD D ISO N, T X

Addison City Council Approves Redevelopment Proposal for Former Sam’s Club – Council Adds Restrictions FEBRUARY 10, 2016 BY MARY ROSENBLEETH

At the January 26, 2016 City Council Meeting at the Addison Conference and Theatre Centre, Fenway Development presented proposed plans for the 17.4 acres located at 4150 Belt Line Road where the former Sam’s Club site currently sits. The Addison Planning and Zoning Commission approved the development at its January 5, 2016 meeting.

In total, the proposed concept plan reviewed at the meeting anticipated: • • • • •

161 Townhouses; 17 Live/Work Units; 350 multifamily apartments; 20,025 square feet of retail along Belt Line Road; and Approximately 1.24 acres of land on the east side will be dedicated to the Town for public open space.

During his presentation on January 26, the developer shared the percentage breakdown of the various land uses on the site: • • • • •

Live/Work Units 2.32% Retail 7.25% Apartments 17.21% Townhouse 48.6% Greenspace 24.61%

After hearing from the developer, traffic engineer, Town staff and residents, the Council approved the project with a vote of 5 – 2.

The project approval included conditions recommended by staff – upgrading Runyon Road, adding noise mitigation methods to the construction plans, increasing the minimum size of the sewer lines and realigning the entrance/exit across from the parking structure – as well as the following changes to the submitted plans: 1.

The existing screening wall along the southern property line shall not be removed until construction has commenced on the townhome units along the wall.

2. A maximum of 330 multifamily units shall be allowed.

3. The proposed street shown on the east side of the development shall be constructed with retractable bollards at Beltway Drive to provide for public safety access only.

4. A short, wrought iron or decorative fence or wall shall be installed to delineate the front yards of the townhomes facing Beltway from the public green space/park.

5. At least 25 live/work and/or townhome units must be under construction prior to the issuance of a building permit for the multifamily units or the garage building.

6. Medical and health related uses shall be permitted upon approval of a Special Use Permit.

7. All construction traffic shall access the site from Runyon Road and Belt Line Road only.

8. The proposed street shown on that east side shall also be constructed with speed/ traffic calming devices.

9. The multifamily units shall be constructed as follows:

The entire multifamily building and parking garage shall be LEED certified; There will be no linoleum or Formica surfaces in the units; All units shall be equipped with energy efficient appliances; All countertops must be granite, stone or better material.

10. Courtyards shown on the Concept Plan will be designed and constructed with enhanced architectural and landscaping features including such elements as water features, landscaping and art features.

Following the vote on the project, Council instructed staff to enter into negotiations with the developer on an incentive proposal that would serve to reimburse for the construction of public infrastructure to facilitate the project. The maximum incentive would be $6.5 million and include permit/development waivers, plus reimbursement for utilities as well as street and park development.

As part of the agreement, the developer offered to deed restrict the multi-family property and garage building to prohibit the use of government subsidies to construct, operate or rent the multi-family units. They have also been required to give the City Council reasonable approval of the apartment developer/operator.

For additional information on the project and links to presentations, traffic studies and more, please visit addisontexas.net or http://bit.ly/ FormerSamsClubAddisonProposedRedevelopment.

PROPERTY DESCRIPTION

6

A D D I SO N G ROVE R EDEVELOPMEN T SI TE P L AN

SNU F F E R ’ S/LA V E NTANA - AD D ISO N, T X

BELT LINE RD

PROPERTY DESCRIPTION

7

A E R I AL MA P

155,000 VPD

SNU F F E R ’ S/LA V E NTANA - AD D ISO N, T X

PRESTONWOOD TOWNE CENTER

BELT LINE RD

ADDISON TOWN CENTER

ADDISON GROVE MIXED-USE DEVELOPMENT

59,116 VPD PRESTONWOOD PLACE VILLAGE ON THEPARKWAY

PROPERTY DESCRIPTION

8

LO C AL MA P

SNU F F E R ’ S/LA V E NTANA - AD D ISO N, T X 380

DECATUR

380

DENTON

MCKINNEY

35W

287

ALLEN 121

35E

199

FLOWER MOUND

PLANO RICHARDSON

287

CARROLLTON

KELLER 377

GARLAND

GRAPEVINE 635

121 820

171

DALLAS

820

FORT WORTH

20

ROCKWALL

IRVING

WEATHERFORD

30

30

ARLINGTON

MESQUITE 175

20

BENBROOK 35W 377

MANSFIELD 287

174

LANCASTER 35E

45

171

PROPERTY DESCRIPTION

9

80

M A R KET OVERVI EW

SNU F F E R ’ S/LA V E NTANA - AD D ISO N, 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 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

10K

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) Home to over 10,000 corporate headquarters, making it the largest concentration in the U.S. MARKET OVERVIEW

10

D E M OG RA PHIC STAT I ST I CS

SNU F F E R ’ S/LA V E NTANA - AD D ISO N, T X

1 MILE

3 MILE

5 MILE

6,811 6,678 7,432 1.99% -10.15% 1,760

144,423 135,885 125,792 6.28% 8.02% 44,388

454,500 413,862 339,999 9.82% 21.72% 129,917

5,016 784 119 588 4 168 10

102,414 18,088 1,214 11,060 130 2,980 86

310,029 53,996 3,764 36,283 379 9,412 236

3,492 3,450 3,990 1.22% -13.53% 1,110 2,340 $94,595 $74,715

65,155 61,503 58,247 5.94% 5.59% 22,716 38,787 $91,724 $64,324

186,287 170,244 144,744 9.42% 17.62% 73,282 96,962 $93,467 $63,483

380 769 582 533 401 233 288 264

8,697 14,728 12,066 7,791 5,721 2,973 3,557 5,970

26,352 41,024 31,569 19,471 13,887 8,784 11,008 18,149

Population: 2023 Projection 2018 Estimate 2010 Census Growth 2018-2023 Growth 2010-2018 2018 Population Hispanic Origin

2018 Population by Race: White Black Am. Indian & Alaskan Asian Hawaiian & Pacific Island Other U.S. Armed Forces:

Households: 2023 Projection 2018 Estimate 2010 Census Growth 2018 - 2023 Growth 2010 - 2018 Owner Occupied Renter Occupied 2018 Avg Household Income (National Avg - $75,558) 2018 Med Household Income (National Avg - $53,889)

2018 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 2018

MARKET OVERVIEW

11

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.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2017 STRIVE

Net Lease Disclaimer STRIVE 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, 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 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. 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 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 STRIVE 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.

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