dooley commons · 2019. 10. 8. · 10.5 million people will be living in the metroplex according to...

dooley commons204 n. dooley street | grapevine, texas 76051

OFFERING MEMORANDUM

investment summary

executive summary

LOCATION:204 & 202 N. Dooley StreetGrapevine, Texas 76051

PRICE: $4,800,000

BLDG PSF: $180.11 PSF

LAND PSF: $37.93 PSF

OCCUPANCY: 9.95% (As-Is)

BUILDING SIZE: 26,650 SF

LOT SIZE: 126,549 SF / 2.90 AC

ZONING: CC Commercial

DEBT: Free & Clear

DB2RE INVESTMENT SALES is proud to offer qualified investors and owner-users Dooley Commons (“Property”), located at 204 N. Dooley Street, just north of E. Northwest Highway in Grapevine, Texas. Offered well below replacement cost at $37.93 PSF to the land and $180.11 to the improvements, the Property provides new ownership a rare opportunity to acquire two (2) terrific infill assets within this high-barrier, high-growth Grapevine market. Totaling 26,650 SF on 2.90 AC, the property can be maintained as two single-tenant assets or converted to a multi-tenant investment. The Property is ideal for value-add investors seeking core service oriented retail and/or office properties or for future owner-users. Building 1, comprised of 24,000 SF (90.05% of the Property) was recently vacated and is comprised of three (3) second generation suites with significant existing improvements, ready for immediate lease-up. Building 2, 2,650 SF (9.95% of the Property) is 100% occupied by Environmental Processing Systems “EPS”, a terrific long-serving tenant since 2012. Completely renovated in 2005, its ample parking (5.10 per 1,000) and strategic positioning within the Grapevine market, Dooley Commons is a needle in a haystack. Dooley Commons proximity to the surrounding affluent neighborhoods and numerous businesses is unmatched. Other notable and nearby economic generators include: DFW International Airport, Gaylord Texan Resort, Great Wolf Lodge, Historic Downtown Grapevine / Main Street and Grapevine Lake, among others. With limited availability in the market and a high-barrier of entry, Dooley Commons is a perfect investment for both investors and users with tremendous upside in both the long-term and short-term.

2 | DB2RE | DOOLEY COMMONS

investment highlights

executive summary

• Excellent service oriented retail and/or office property located in trophy infill market of Grapevine, Texas.

• Needle in a haystack investment opportunity with tremendous upside for investors through the lease-up of the 24,000 SF of availability and by pushing below market rental rates.

• Located just north of Northwest Highway (Highway Bypass 114), the Property is just seconds away from Historic Downtown Grapevine and Main Street.

• Offered at land value and well below replacement cost, Dooley Commons provides investors / owner-users an affordable option to enter this high-barrier market at the cost of $180 PSF to the building and $38 PSF to the land.

• Completely renovated in 2005, the offering consists of two (2) single-tenant assets totaling 26,650 SF (Building 1: 24,000 SF & Building 2: 2,650 SF) on over 2.90 AC within the center of Grapevine.

• Available 24,000 SF is already separated into three (3) second generation suites and in move-in ready condition. Building may also be kept as a single-tenant asset.

• Building 2 is leased by EPS, a seven-year tenant paying well below market at $14.50 NNN. The lease boasts less than two (2) years remaining on the current term with two (2) five-year options at FMV.

• Excellent visibility and accessibility with strategic positioning along N. Dooley Street. The Property also enjoys ample parking (over 5.10 per 1,000), a true rarity in the market.

• Remodeled in 2005, Dooley Commons requires virtually zero capital improvements.

• Convenient access to numerous traffic generators that includes: DFW International Airport, Grapevine Lake, Gaylord Texan Resort, Great Wolf Lodge, Bass Pro Shop, Grapevine Mills Mall, Historic Downtown Grapevine / Main Street.

• Approximately 36,150 to 108,164 residents with average household incomes at a staggering $96,767 and $143,055 within a 3 & 5 mile radius.

• 3,059 and 6,622 businesses with 81,473 and 164,108 employees within a 3 & 5 mile radius of Dooley Commons.


PROPERTY INFORMATION


ADDRESS:204 & 202 N. Dooley Street Grapevine, Texas 76051

APN: 3170-6-1A

BUILDING SIZE:Total: 26,650 SFBldg 1: 24,000 SFBldg 2: 2,650 SF

LOT SIZE: 2.90 AC / 126,549 SF

OCCUPANCY: 9.95% (As-Is)

YEAR BUILT: 1961 / Total renovation in 2005

PARKING:Approximately 136 surface spaces / 5.10 per 1,000

SIGNAGE: Tenant signage on facade

INGRESS / EGRESS:Two (2) points of ingress / egress along N. Dooley Street and Turner Road

ZONING: CC Commercial

ROOF:Bldg 1: Steel (Good Condition) Bldg 2: Steel (Good Condition)

HVAC: Exterior HVAC units

TRAFFIC:N. Dooley Street - 6,070 vpdE. Northwest Highway / Highway 114 - 31,000 vpdTexas Highway 114 - 202,843 vpd

N. DOOLEY STREET

E. NORTHWEST HIGHWAY

TURNER ROAD

BLDG 1: 204SUITE 100 - 300

BLDG 2: 202SUITE 200


AERIAL


E. NORTHWEST HIGHWAY

N. D

OO

LEY

ST

REE

T

BLDG 1: 204SUITE 100 - 300

BLDG 2: 202SUITE 100


PROPERTY INFORMATIONDEMOGRAPHICS

1 MILE 3 MILE 5 MILE

TOTAL POPULATION: 9,823 36,150 108,164

POPULATION GROWTH RATE: 2.56% 1.66% 1.77%

TOTAL HOUSEHOLDS: 4,132 14,864 39,079

HOUSEHOLD GROWTH RATE: 2.52% 1.66% 1.70%

AVERAGE HOUSEHOLD INCOME: $89,699 $96,767 $143,055

MEDIAN AGE: 37.2 37.7 40.7

BUSINESSES: 862 3,059 6,622

EMPLOYEES: 11,681 81,473 164,108

% WHITE: 60.58% 59.78% 66.43%

% HISPANIC: 22.70% 20.74% 13.75%


DALLAS-FORT WORTH national recognition

market overview

#1 Cities for Absolute Job Growth – Bureau of Labor Statistics, 2018

#1 Real Estate Market for 2016 (Urban Land Institute)

#1 Best City to Buy a Home – Niche, 2018

#1 Best City for Jobs (Dallas) – Forbes, 2017

#1 Texas has the Best Business Climate – Development Consolers International 2014

#1 Downtown Fort Worth is No. 1 on Top 10 Best Downtowns – Livability.com, 2014

#1 Top city in the country to find tech professionals (Dallas) – Kforce, 2013

#1 Most affordable Major Metropolitan Area in the U.S. – ZipRealty, 2013

#1 Most Valuable Sports Team in the World – Forbes, 2018

#1 Metro area for most shopping centers per capita in the nation – Dallas Economic Development

#2 Best City for Job Seekers in 2015 (Fort Worth) – NerdWallet, 2015

#3 Best Sport Cities in the United States – Sports Illustrated, 2018

#3 Metro Areas with the Best Job Outlook – ManpowerGroup, 2014

#3 Travel Destination in the U.S. (Dallas) – Resonance Consultancy Ltd., 2014

#3 Fastest-Growing GDP for Top 10 Largest Metro Areas in the U.S. – BOEA, 2013

#4 Most Global Fortune 500 Companies – Forbes, 2019

#4 America’s Fastest-Growing Cities – Forbes, 2014

#4 Top Cities to Work in Tech (Dallas) – SmartAsset, 2014

#5 Fastest Growing Economies – Forbes, 2017

#5 Best Cities for Future Job Growth – Forbes, 2014

#6 Largest Gross Metropolitan Product in the U.S. – U.S. Department of Commerce’s BOEA, 2014


The Dallas/Fort Worth Metroplex (DFW) is a dynamic 12-county region made up of Dallas,

Fort Worth, and another 150 municipalities. The DFW Metroplex is the largest urban

agglomeration in Texas and the fourth largest in the United States spanning an area of 9,286

square miles with a population of approximately 7.1 million people. As the fourth fastest

growing region in the United Sates, the DFW population in 2016 was 33.6% higher than in

2000 according to data from Neilson Claritas; by the year 2030, it is projected that over

10.5 million people will be living in the Metroplex according to the Dallas Regional Chamber.

The DFW region is the most economically diverse region in the state of Texas. The

GDP of North Texas is estimated to be $486 Billion, and if DFW were its own state it

would be the 9th largest in the Nation and 23rd largest country in the World, behind

Taiwan. Twenty Fortune 500 companies have their headquarters in DFW. DFW is

connected to the world by the nation’s fourth busiest airport and is served by 55

international flights. DFW has the largest workforce in the state of Texas totaling

over 3.51 million people, and 34.20% of the population 25 and older have a bachelor’s

degree or higher. In DFW, there are 33 colleges and universities, 157 public school

districts and 96 public charter schools, according to the North Texas Commission.

Dallas/Fort Worth consistently ranks as a top market for job growth over the short and

long term due to its central location, pro-business environment and strong economy.

Historically a leader with respect to job growth, DFW added 717,000 jobs since 2010

and 120,500 jobs in 2016 alone, equating to a 3.50% increase to the employment base.

Dallas/Fort Worth as well as Texas, continuously boast an unemployment rate lower than

the National Average (4.30%). As of Today, DFW enjoys an average unemployment rate

of 3.80%.

dfw market overview

market overview


financialsrent roll (AS-IS)

LEASE TERM BASE RENTAL TERMS RECOVERIES TOTALS

TENANT SUITE GLA % Of GLALEASE TYPE

START END MONTHLY ANNUAL PSF % OF REV MONTHLY ANNUAL PSF % OF REVTOTAL %

REV

SPEC TENANT 204 - 100 13,850 51.97% - - - $0 $0 $0.00 0.00% $0 $0 $0.00 0.00% 0.00%

SPEC TENANT 204 - 200 5,000 18.76% - - - $0 $0 $0.00 0.00% $0 $0 $0.00 0.00% 0.00%

SPEC TENANT 204 - 300 5,150 19.32% - - - $0 $0 $0.00 0.00% $0 $0 $0.00 0.00% 0.00%

EPS, LP 202 - 100 2,650 9.94% NNN 12/12 11/22 $3,202 $38,426 $14.50 75.16% $1,058 $12,700 $4.79 24.84% 100.00%

TOTALS: 26,650 100% $3,202 $38,426 75% $1,058 $12,700 25% 100%

TOTAL NUMBER OF TENANTS / GLA 4 26,650 100.00%

NOTES:[1] Rent Roll per Ownership September 2019 Rent Roll.[2] Suites 204 - 100 to 300 available for lease-up. Estimated lease terms to new tenant or owner-user at $17.00 PSF NNN for five (5) years, with two (2) 3.00% rent increases and one (1) five-year FMV renewal option.[3] All tenants reimburse for NNN’s.[4] CAM Expenses per 2018 Actuals or $0.94 PSF.[5] Management Fee Expense estimated at 4.00% of EGI.[6] Insurance Expense per 2018 Actuals or $0.57 PSF.[7] Taxes per 2019 Tarrant County Appraisal District assessed taxes. 2019 Taxes have not been finalized, but estimated to be $3.07 PSF.

TOTAL OCCUPIED 1 2,650 9.94%

TOTAL AVAILABLE 3 24,000 90.06%

AVERAGE 204 SHOP RENT / GLA $0.00 0 0.00%

AVERAGE 204 ANCHOR RENT / GLA $0.00 0 0.00%

AVERAGE 202 RENT / GLA $14.50 2,650 100.00%

AVERAGE OVERALL RENT / GLA $14.50 2,650 100.00%


financialstenant notes & NNN EXPENSE BREAKOUT

BASE RENTAL INCREASES OPTION / NOTES

TENANT SUITE GLARENTAL

INCREASE(S)INCREASE DATES MONTHLY ANNUAL PSF RENEWAL NOTES

Available 204 - 100 13,850 - - - - - - - -

Available 204 - 200 5,000 - - - - - - - -

Available 204 - 300 5,150 - - - - - - - -

EPS, LP 202 - 100 2,650 Two (2) 3.33%12/2012/21

$3,313$3,423

$39,750$41,075

$15.00$15.50

- -

TOTALS: 26,650

as-is

NNN EXPENSESNNN EXPENSE BREAKOUT

CAM Expenses ($24,921) ($0.94)

Insurance Expenses ($15,236) ($0.57)

Real Estate Taxes ($85,518) ($3.21)

TOTAL NNN EXPENSES ($149,511) ($4.72)


disclaimer

Davidson & Bogel Real Estate, LLC (DB2RE): The information contained in this document pertaining to Dooley Commons has been obtained from sources believed reliable. While DB2RE does not doubt its accuracy, DB2RE has not verified the information and makes no guarantee, warranty or representation about the information contained in this package. It is

your (Purchaser) responsibility to independently confirm the accuracy and completeness of the information. Any projec-tions, opinions, assumptions or estimates used herein are for example only and does not represent the current or future

performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors.

You and your advisors should conduct a careful, independent investigation of the property to determine to your satis-faction the suitability of the property for your needs. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited. DB2RE and the DB2RE logo are service

marks of Davidson & Bogel Real Estate, LLC and/or its affiliated or related companies in the United States and other countries. All other marks displayed as well as any elements of this document are the property of their respective own-ers and DB2RE. No transmission of this document is permitted without written consent from DB2RE. As a condition of DB2RE’s consent to communicate the information contained herein–as well as any information that may be communi-cated to you subsequently either verbally or in writing by DB2RE, owner or agents of either of these parties regarding

the Property – it is required that you agree to treat all such information confidentially.

disclosure


disclaimerTYPES 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 dues 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 dues 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 the 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 that the owner will accept a price less than the written asking price; that the buyer/tenant will pay a price greater than the price submitted in a written offer; and 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 dues 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.

DAVIDSON BOGEL REAL ESTATE, LLC 9004427 [email protected] 214-526-3626

LICENSED BROKER / BROKER FIRM NAME LICENSE NO. EMAIL PHONE

MICHAEL EDWARD BOGEL II 598526 [email protected] 214-526-3626

DESIGNATED BROKER OF FIRM LICENSE NO. EMAIL PHONE

MICHAEL CAMERON DEPTULA 622382 [email protected] 214-526-3626

LICENSED SALES AGENT / ASSOCIATE LICENSE NO. EMAIL PHONE

brokerage services


disclaimerAPPROVED 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. (01A TREC NO. OP-K)

INFORMATION ABOUT BROKERAGE SERVICES: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 in¬formation 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 rep-resent 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 under¬lined 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; buyer: and(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.

brokerage services


DOOLEY COMMONS204 N. DOOLEY STREET | GRAPEVINE, TEXAS 76051

CAMERON DEPTULA

2929 Carlilse Street, Suite 250

Dallas, TX 75204

(214) 497-0276

[email protected]

WWW.DB2RE.COM

dooley commons · 2019. 10. 8. · 10.5 million people will be living in the metroplex according to...

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