offering memorandum - loopnet · 2018. 9. 4. · income summary per sf base rent $435,310 $30.84...

P H I L I P L E V Y972.755.5225SENIOR MANAGING [email protected]

OFFERING MEMORANDUM

2

PROPERTY INFORMATION 3

Executive Summary 4

Property Description 5

Complete Highlights 6

LOCATION INFORMATION 7

Regional Map 8

Location Maps 9

Aerial Map 10

Aerial Map 11

FINANCIAL ANALYSIS 12

Financial Summary 13

Income & Expenses 14

Rent Roll 15

DEMOGRAPHICS 16

Demographics Report 17

Demographics Map 18

IABS 19

Back 0

ContentsConfidentiality & Disclaimer

The information contained in the following Marketing Brochure is proprietary and strictlyconfidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichapand should not be made available to any other person or entity without the written consent ofMarcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverifiedinformation to prospective purchasers, and to establish only a preliminary level of interest in thesubject property. The information contained herein is not a substitute for a thorough duediligence investigation. Marcus & Millichap has not made any investigation, and makes nowarranty or representation, with respect to the income or expenses for the subject property, thefuture projected financial performance of the property, the size and square footage of theproperty and improvements, the presence or absence of contaminating substances, PCB's orasbestos, the compliance with State and Federal regulations, the physical condition of theimprovements thereon, or the financial condition or business prospects of any tenant, or anytenant’s plans or intentions to continue its occupancy of the subject property. The informationcontained in this Marketing Brochure has been obtained from sources we believe to be reliable;however, Marcus & Millichap has not verified, and will not verify, any of the information containedherein, nor has Marcus & Millichap conducted any investigation regarding these matters andmakes no warranty or representation whatsoever regarding the accuracy or completeness of theinformation provided. All potential buyers must take appropriate measures to verify all of theinformation set forth herein.

Non-Endorsement Notice

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant orlessee identified in this marketing package. The presence of any corporation’s logo or name is notintended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporationof Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commerciallisting of Marcus & Millichap, and is solely included for the purpose of providing tenant lesseeinformation about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS

Center Street Retail Center457 East Interstate 20, Arlington, TX 76018

TABLE OF CONTENTS

Section 1 PROPERTY INFORMATION

4

OFFERING SUMMARY

Sale Price: $6,801,000

Cap Rate: 6.4%

NOI: $435,310

Lot Size: 2.03 Acres

Year Built: 2015

Building Size: 14,114

Price / SF: $481.86

Marcus & Millichap is pleased to offer the opportunity to acquire a 14,114-square foot multi-tenant shopping center in a denseretail trade area.

PROPERTY OVERVIEW

DEMOGRAPHICS

1 MILE 3 MILES 5 MILES

Total Households 3,338 49,570 116,635

Total Population 9,686 143,489 341,457

Average HH Income $66,242 $63,573 $69,629


PROPERTY INFORMATION | EXECUTIVE SUMMARY

5

Marcus & Millichap is pleased to offer the opportunity to acquire a 14,114-square foot multi-tenant shopping

center in a dense retail trade area. Center Street Retail Center is 100 percent leased, and all leases are triple-net.

Tenants consist of Snuffer’s Restaurant and Bar, Andaulos Mediterranean Grill, and Eva Nails. The building is newer

2015 construction and is situated on a large 2.03-acre lot with concrete parking. The building is in-line with a

former 52,000-square foot Gander Mountain building.

PROPERTY OVERVIEW

The subject property is located on Interstate 20, one of the major east-west thoroughfares between Dallas and Fort

Worth. Traffic counts are in excess of 189,000 vehicles per day in front of the property. The property is in a dense

retail trade area and is shadowed by Arlington Highlands, one of Arlington’s premier locations for dining, shopping,

and entertainment, featuring national tenants such as The Container Store, PetSmart, JoAnn Fabrics, Conn’s, Bed

Bath & Beyond, Ulta Beauty, BJ’s Brewhouse, Chuy’s, P.F. Chang’s, Famous Footwear, Ethan Allen, Sleep Experts,

World Market, Old Navy, Dave & Buster’s, Studio Movie Grill, and others.

The Parks at Arlington Mall is approximately one and a half miles west of the property, anchored by Dillard’s,

Macy’s, Sears, JCPenney, Dick’s Sporting Goods, and AMC Theatres. Numerous other national retailers are in the

area including Rudy’s Country Store and Bar-B-Q, Cotton Patch Café, Golden Corral, Concentra Urgent Care,

Hilton Garden Inn, Target, Office Depot, Rooms to Go, Fallas Paredes, Best Buy, Haverty’s Furniture, Putt-Putt Golf,

Michaels, Lowe’s Home Improvement, Academy Sports and Outdoors, Harbor Freight Tools, Sun & Ski, and many

more. The surrounding area is densely populated with over 341,400 residents within five miles of the property and

an average household income exceeding $69,000.

LOCATION OVERVIEW


PROPERTY INFORMATION | PROPERTY DESCRIPTION

6

SALE HIGHLIGHTS

• 14,114-Square Foot Multi-Tenant Shopping Center in a Dense Retail Trade Area

• 100 Percent Leased | All Leases are Triple-Net

• Building is Newer 2015 Construction

• Situated on a Large 2.03-Acre Parcel with a Concrete Parking Lot

• Freeway Location on One of the Major East-West Thoroughfares Between Dallas and

Fort Worth (I-20) and at the Signalized Intersection with South Center Street | Ingress

and Egress Points from both Roads

• Traffic Counts Exceed 189,000 Vehicles per Day on Interstate 20

• $11 Million Center Street Bridge Construction Project Completed in 2017 | Extended

Center Street South of Highlander Boulevard, Over Interstate 20 and South to Bardin

Road | Designed to Relieve Traffic Congestion and Provide Increased Access to

Arlington Highlands Shopping Center as Well as Neighborhoods and Businesses South

of the Interstate

• Shadowed by Arlington Highlands | Premier Location for Dining, Shopping, and

Entertainment with More than 25 Restaurants and 50 Retail Stores

• One and a Half Miles from The Parks at Arlington Mall | Anchored by Dillard's, Macy's,

Sears, JCPenney, Dick's Sporting Goods, and AMC Theaters

• Surrounding Area is Densely Populated with Over 341,400 Residents within Five Miles


PROPERTY INFORMATION | COMPLETE HIGHLIGHTS

Section 2 LOCATION INFORMATION

8

Center Street Retail Center


LOCATION INFORMATION | REGIONAL MAP

9


LOCATION INFORMATION | LOCATION MAPS

1 0


LOCATION INFORMATION | AERIAL MAP

1 1


LOCATION INFORMATION | AERIAL MAP

Section 3 FINANCIAL ANALYSIS

1 3

INVESTMENT OVERVIEW

Price $6,801,000

Price per SF $481.86

CAP Rate 6.4 %

Total Return (yr 1) $435,310

OPERATING DATA

Gross Income $598,169

Operating Expenses $162,859

Net Operating Income $435,310

FINANCING DATA

Down Payment $6,801,000

Loan Type All Cash


FINANCIAL ANALYSIS | FINANCIAL SUMMARY

INCOME SUMMARY PER SF

Base Rent $435,310 $30.84

Real Estate Taxes Reimbursements $88,977 $6.30

Insurance Reimbursements $9,300 $0.66

CAM Reimbursements $39,582 $2.80

Management Fee Reimbursements $25,000 $1.77

Gross Income $598,169 $42.38

EXPENSE SUMMARY PER SF

Real Estate Taxes $88,977 $6.30

Insurance $9,300 $0.66

Water $17,511 $1.24

Electricity $3,686 $0.26

Trash Removal $6,951 $0.49

Lawn Service $3,640 $0.26

Fire Monitoring $635 $0.04

Maintenance/Miscellaneous $1,997 $0.14

Tax Reduction Fee $5,162 $0.37

Management Fee $25,000 $1.77

Gross Expenses $162,859 $11.54

Net Operating Income $435,310 $30.84

1 4


FINANCIAL ANALYSIS | INCOME & EXPENSES

TENANT

NAME

UNIT

NUMBER

UNIT

SIZE (SF)

% OF

GLA

LEASE

START

LEASE

END

ANNUAL

RENT

ESC

DATE

PRICE

PER YEAR

LEASE

TYPE OPTION

EXPENSE

REIMBURSEMENT

Snuffer's Restaurant & Bar 4,896 34.69 1/01/16 12/31/26 $151,776

1/1/2022

$31.00

$32.00

NNN (2) 5-Yr $56,495.79

Andaulos Mediterranean Grill 4,800 34.01 2/01/15 1/31/26 $144,000

2/1/2021

$30.00

$31.50

NNN (2) 5-Yr $55,388.35

Eva Nails 2,576 18.25 11/13/14 11/30/19 $82,432 $32.00 NNN (1) 5-Yr $29,721.77

La Ventana (1) 1,842 13.05 1/01/16 12/31/26 $57,102

1/1/2022

$31.00

$32.00

NNN (2) 5-Yr $21,253.10

Totals/Averages 14,114 $435,310 $30.84 $162,859.01 $162,859.01

(1) The La Ventana suite is currently dark; however, the tenant continues to pay rent and triple-net reimbursements per the lease agreement, and the lease has a strong guarantor.

1 5


FINANCIAL ANALYSIS | RENT ROLL

Section 4 DEMOGRAPHICS

1 7

1 MILE 3 MILES 5 MILES

Total population 9,686 143,489 341,457

Median age 30.8 30.1 31.3

Median age (Male) 29.3 28.6 30.4

Median age (Female) 32.0 31.7 32.3

Total households 3,338 49,570 116,635

Total persons per HH 2.9 2.9 2.9

Average HH income $66,242 $63,573 $69,629

Average house value $111,978 $119,760 $146,883

Total Population - White 4,489 70,911 185,069

% White 46.3% 49.4% 54.2%

Total Population - Black 2,458 30,149 67,328

% Black 25.4% 21.0% 19.7%

Total Population - Asian 1,147 12,356 26,800

% Asian 11.8% 8.6% 7.8%

Total Population - Hawaiian 18 103 194

% Hawaiian 0.2% 0.1% 0.1%

Total Population - American Indian 11 565 2,037

% American Indian 0.1% 0.4% 0.6%

Total Population - Other 1,337 15,269 32,882

% Other 13.8% 10.6% 9.6%

Total Population - Hispanic 2,796 42,656 97,133

% Hispanic 28.9% 29.7% 28.4%

* Demographic data derived from 2010 US Census


DEMOGRAPHICS | DEMOGRAPHICS REPORT

1 8

POPULATION 1 MILE 3 MILES 5 MILES

Total population 9,686 143,489 341,457

Median age 30.8 30.1 31.3

Median age (Male) 29.3 28.6 30.4

Median age (Female) 32.0 31.7 32.3

HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES

Total households 3,338 49,570 116,635

# of persons per HH 2.9 2.9 2.9

Average HH income $66,242 $63,573 $69,629

Average house value $111,978 $119,760 $146,883

ETHNICITY (%) 1 MILE 3 MILES 5 MILES

Hispanic 28.9% 29.7% 28.4%

RACE (%)

White 46.3% 49.4% 54.2%

Black 25.4% 21.0% 19.7%

Asian 11.8% 8.6% 7.8%

Hawaiian 0.2% 0.1% 0.1%

American Indian 0.1% 0.4% 0.6%

Other 13.8% 10.6% 9.6%

* Demographic data derived from 2010 US Census


DEMOGRAPHICS | DEMOGRAPHICS MAP

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 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 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.

Information available at www.trec.texas.gov Regulated by the Texas Real Estate Commission IABS 1-0

11-2-2015

Licensed Broker /Broker Firm Name or Primary Assumed Business Name License No. Email Phone

Designated Broker of Firm License No. Email Phone

Licensed Supervisor of Sales Agent/Associate License No. Email Phone

Sales Agent/Associate’s Name License No. Email Phone

Buyer/Tenant/Seller/Landlord Initials Date

P H I L I P L E V YSenior Managing DirectorDallas Office

972.755.5225 Office817.380.1153 [email protected]: TX 0522087

5001 Spring Valley RoadDallas, TX 75244

offering memorandum - loopnet · 2018. 9. 4. · income summary per sf base rent $435,310 $30.84...

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