plano crossing ii - loopnet...aug-19 to jul-20 $ psf size of improvements 20,279 sf in-place...

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PLANO CROSSING II 8740 OHIO DR | PLANO, TX 75024

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EXCLUSIVE MARKETING ADVISORSJARED AUBREYSenior Vice President+1 214 252 1031

[email protected]

MICHAEL AUSTRYVice President

+1 214 252 [email protected]

JARED AUBREYSenior Vice President+1 214 252 1031

[email protected]

MICHAEL AUSTRYVice President

+1 214 252 [email protected]

EXCLUSIVE MARKETING ADVISORS

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OFFERING SUMMARY

NET OPERATING INCOME $412,885

PRICE PER SQUARE FOOT $283

YEAR RENOVATED 2015

GROSS LEASEABLE AREA 20,279 SF

LOT SIZE 3.18 ACRES

OCCUPANCY 100%

PRICE: $5,735,000

CAP RATE: 7.20%

8740 OHIO DR | PLANO, TX

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INVESTMENT HIGHLIGHTS

New Long-Term Triple Net Leases

Significantly Below Submarket Rent - Average $20.36 Per Square Foot - West Plano Retail Submarket Rent average is $26 per square foot (SOURCE: COSTAR)

Stabilized Center at 100% Occupancy

Strong Traffic Counts, Excellent Highway Visibility - Located on Sam Rayburn Tollway (165,765 vehicles per day) and Ohio Drive (15,331 vehicles per day)

High Quality Construction - Under Replacement Cost

Internet Resistant and Amazon Proof Tenants - Provides an investor with further stability to complement the long-term leases in place

Easy access to and from Ohio Drive and Sam Rayburn Tollway

Dense Retail Corridor - Surrounding retailers include two extremely populous malls, The Stonebriar Centre & The Shops at Legacy (Nordstrom, Dillards, Shake Shack, Mesero, True Food Kitchen, The Capital Grille, Lululemon, SEPHORA, Tesla and others), Ashley Furniture, Ethan Allen, Hilton Dallas, The Container Store, IKEA, and many more national tenants

Forbes Named The Dallas-Plano-Irving Area as the Third Fastest Growing Metropolis in America

Texas has NO State Income Tax

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TENANT ROSTER

TENANTS SF GLA % LEASECOMMENCEMENT

LEASEEXPIRATION

ANNUAL BASE RENT TOTAL

LEASETYPE

ELEGANCE BALLROOM 7,957 39.24% MARCH 2019 JUNE 2024 $159,140 NNN

OLYMPUS PAIN & ORTHOPEDIC 3,028 14.93% NOVEMBER 2017 OCTOBER 2024 $62,377 NNN

FRISCO FIRST SURGERY 4,550 22.44% DECEMBER 2017 NOVEMBER 2024 $93,730 NNN

BIRYANI & CO 4,744 23.39% MARCH 2015 MARCH 2022 $92,508 NNN

TOTAL OCCUPIED 20,279 100%

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PROPERTY LOCATION

8740 OHIO DR PLANO, TX

PLANO CROSSING II

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PROPERTY AERIAL

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PROPERTY AERIAL

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PROPERTY AERIAL

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MASS MOBILE DATA STUDY ON PLANO CROSSING II

Plano Crossing II attracts visitors from all over the DFW Metroplex which increases the true market potential for retailers exponentially. The property is not only appealing to the local customer base in Plano, but also the large amount of people all throughout DFW.

The Trade Area is derived by comparing the raw evening locations to the baseline population of the census tract. The Baseline value is important in identifying areas in the market that are penetrating above average. Census tracts are selected and analyzed until a trade area is created that represent 60% to 70% of the captured customer base.

This map was created by CBRE’s mobile technology platform called Mass Mobile Data (MMD). MMD is anonymous data gathered from the GPS trackers in one’s devices. By analyzing the sophisticated mobile data, CBRE is able to paint a picture of any property’s customer base.

WHERE ARE PLANO CROSSING II’S VISITORS COMING FROM?

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Elegance Ballroom Dance Studio and Event Center is a teaching studio that specializes in Ballroom, Latin, Country and Salsa. Its dance instructors have a combined 150+ years of teaching experience and assist individuals, couples and groups. Its beautiful event center can accommodate up to 300 guests for meetings, receptions, showers, parties and more. From learning dance choreography to celebrating an event, allow Elegance Ballroom Dance Studio and Event Center add a little “elegance” to life.

TYPE: Studio & Event Center

WEBSITE: www.eleganceballroomandeventcenter.com

SQ FOOTAGE: 7,957 SF

% OF CENTER 39.24%

TENANT OVERVIEW

ELEGANCE BALLROOM

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At Frisco First Surgery, all surgeries and procedures that Olympus Pain and Orthopedics (the tenant in the same property) performs are completed at Frisco First Surgery Center. Also, these two tenants are affiliated, and both guaranteed by Interventional Spine of Texas, PLLC, which is a multiple location operator that is an established pain management network.

TYPE: Medical

WEBSITE: www.friscofirstsurgery.com


% OF CENTER 22.44%

TENANT OVERVIEW

FRISCO FIRST SURGERY

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At Olympus, patients will be seen by board-certified pain specialist physicians. The company believe patients benefit from a multidisciplinary approached plan of treatment. The options include pain management, spinal injections, and if necessary, minimally invasive surgeries such as microdiscectomies, spinal fusions, and arthroscopic procedures.

TENANT OVERVIEW

TYPE: Medical

WEBSITE: www.olympuspainortho.com


% OF CENTER 14.93%

OLYMPUS PAIN & ORTHOPEDICS

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Biryani & Co. is a casual South Indian cuisine restaurant that offers casual dine-in and delivery. Open seven days a week, the restaurant even offers a popular Sunday buffet. The company’s first restaurant is in Austin, and last year opened the Plano location. This restaurant has an additional banquet facility.

TYPE: Restaurant

WEBSITE: www.biryaniandcoplano.com


% OF CENTER 23.39%

TENANT OVERVIEW

BIRYANI & CO

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IN-PLACE NOI & PRICING SUMMARY

In-Place NOIAug-19 to Jul-20 $ PSF

Size of Improvements 20,279 SFIn-Place Occupancy 100.00%REVENUES

Scheduled Base RentGross Potential Rent $412,885 $20.36Absorption & Turnover Vacancy 0 0.00 Notes

Total Scheduled Base Rent 412,885 20.36CAM Reimbursement 42,609 2.10MGT Reimbursement 16,670 0.82INS Reimbursement 9,814 0.48RET Reimbursement 73,705 3.63

TOTAL GROSS REVENUE 555,682 27.40OPERATING EXPENSES

Common Area Maintenance (42,609) (2.10)Management Fee (16,670) (0.82)Insurance (9,814) (0.48)Real Estate Taxes (73,705) (3.63)

TOTAL OPERATING EXPENSES (142,798) (7.04)NET OPERATING INCOME $412,885 $20.36

Annual Debt Service (246,996) (12.18)CASH FLOW AFTER DEBT $165,888 $8.18

PURCHASE PRICE AS OF AUG 1, 2019 $5,734,507 $282.78Loan Funding (3,727,430) (183.81)Origination Fee 37,274 1.84INITIAL EQUITY $2,044,352 $100.81

Assumptions:Commencement Date Aug 1, 2019

Investment SummaryCapitalization RateLeveraged Cash on Cash Return [1]Debt Service Coverage Ratio (NOI)Loan ConstantWeighted Average Lease Term (in Years)

7.20%8.11%1.67x

6.63%4.53 Years

[1] Market Debt based on 65% Loan-to-Value, 5.25% Interest Rate, 30 Year Amortization, and a 1.00% Loan Fee.

Operating Expense SourceManagement Fee (% of EGR)Real Estate Taxes Reassessed?

YE 06/20 Proforma / 101.5%3.00%

No

General:a) Analysis assumes no capital or leasing costs.Operating Expenses:a) Analysis includes expenses per the provided YE 06/20 Proforma divided by 101.5% to CY2019.b) Analysis assumes all tenants pay a net share of CAM, MGT, INS, and RET per the provided YE 06/20 Proforma. In order to further enhance these projections, a detailed review of the final 2018 CAM Reconciliation is required.c) Analysis does not factor in the Texas Margin Tax and assumes a buyer will consult with their tax advisor to evaluate their exposure to this expense.

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EXISTING LEASE EXPIRATIONSSuite Tenant End 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Thereafter Available

8740-C Biryani & Co. Indian Restaurant Mar-22 4,7448740-A Elegance Ballroom Jun-24 7,9578740-B Olympus Pain & Orthopedic Oct-24 3,028

8740-B1 Frisco First Surgery Center Nov-24 4,550

Totals: 0 0 0 4,744 0 15,535 0 0 0 0 0 0Percent: 0% 0% 0% 23% 0% 77% 0% 0% 0% 0% 0% 0%Count: 0 0 0 1 0 3 0 0 0 0 0 0

Cumulative SF: 0 0 0 4,744 4,744 20,279 20,279 20,279 20,279 20,279 20,279 20,279Cumulative %: 0% 0% 0% 23% 23% 100% 100% 100% 100% 100% 100% 100%

Summary of Lease Expirations

Year Leases SF Percent Cumu. SF Cumu. %

2019 0 0 0% 0 0%

2020 0 0 0% 0 0%

2021 0 0 0% 0 0%

2022 1 4,744 23% 4,744 23%

2023 0 0 0% 4,744 23%

2024 3 15,535 77% 20,279 100%

2025 0 0 0% 20,279 100%

2026 0 0 0% 20,279 100%

2027 0 0 0% 20,279 100%

2028 0 0 0% 20,279 100%

Thereafter 0 0 0% 20,279 100%

Available 0 0 0% 20,279 100%

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Annual Cumulative

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RENT ROLL AS OF 8/1/2019Square % of Lease Term Rental Rates Recovery

Suite Tenant Name Feet Property Begin End Begin Monthly Annually PSF Type

7,957 39.24% Mar-2019 Jun-2024 Current $13,262 $159,140 $20.00 - Apr-2020 $13,527 $162,323 $20.40 2.00%Apr-2021 $13,797 $165,569 $20.81 2.00%Apr-2022 $14,073 $168,881 $21.22 2.00%Apr-2023 $14,355 $172,258 $21.65 2.00%Apr-2024 $14,642 $175,703 $22.08 2.00%

Notes: Renewal Option: Two 3 year renewal options @ $22.08 /sf/yr and $23.43 /sf/yr, each with 2% annual increases. Analysis takes options.Expense Cap: 5% cumulative cap on CAM excluding UTIL, INS, and RET.

3,028 14.93% Nov-2017 Oct-2024 Current $5,198 $62,377 $20.60 - Nov-2019 $5,354 $64,248 $21.22 3.00%Nov-2020 $5,515 $66,176 $21.85 3.00%Nov-2021 $5,680 $68,161 $22.51 3.00%Nov-2022 $5,850 $70,206 $23.19 3.00%Nov-2023 $6,026 $72,312 $23.88 3.00%

General Notes: Actual tenant expiration on 11/14/24.Renewal Option: Two 5 year renewal options @ $24.60 /sf/yr and $28.52 /sf/yr, each with 3% annual increases. Analysis takes options.Expense Cap: 5% cumulative cap on CAM excluding UTIL, INS, and RET.

4,550 22.44% Dec-2017 Nov-2024 Current $7,811 $93,730 $20.60 - Dec-2019 $8,045 $96,542 $21.22 3.00%Dec-2020 $8,287 $99,438 $21.85 3.00%Dec-2021 $8,535 $102,421 $22.51 3.00%Dec-2022 $8,791 $105,494 $23.19 3.00%Dec-2023 $9,055 $108,659 $23.88 3.00%


4,744 23.39% Mar-2015 Mar-2022 Current $7,709 $92,508 $19.50 - Apr-2020 $7,907 $94,880 $20.00 2.56%Apr-2021 $8,104 $97,252 $20.50 2.50%

General Notes: Per client, tenant's renewal option was not conveyed from assignor to assignee.

TOTALS / AVERAGES 20,279 $33,980 $407,755 $20.11

OCCUPIED SqFt 20,279 100.0%VACANT SqFt 0 0.0%

TOTAL SqFt 20,279 100.0%

WEIGHTED-AVERAGE LEASE TERM REMAINING: 4.53 YearsWEIGHTED-AVERAGE LEASE TERM LAPSED: 1.75 YearsWEIGHTED-AVERAGE LEASE TERM FROM INCEPTION: 6.28 Years

Elegance Ballroom NNN+MGT8740-A

8740-B Olympus Pain & Orthopedic

NNN+MGT

8740-B1 Frisco First Surgery Center

NNN+MGT

8740-C Biryani & Co. Indian Restaurant

NNN+MGT

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RENT ROLL AS OF 8/1/2019Square % of Lease Term Rental Rates Recovery










TOTALS / AVERAGES 20,279 $33,980 $407,755 $20.11


TOTAL SqFt 20,279 100.0%




NNN+MGT


NNN+MGT


NNN+MGT

Square % of Lease Term Rental Rates Recovery










TOTALS / AVERAGES 20,279 $33,980 $407,755 $20.11


TOTAL SqFt 20,279 100.0%




NNN+MGT


NNN+MGT


NNN+MGT

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POPULATION (2018)1 MILE 11,0373 MILES 110,8495 MILES 294,8217 MILES 563,911

HOUSEHOLDS (2018)1 MILE 4,6163 MILES 44,3145 MILES 110,7047 MILES 213,262

AVG HH INCOME (2018)1 MILE $122,6143 MILES $135,1085 MILES $137,7527 MILES $129,967

ANNUAL POPULATION GROWTH RATE (1 MILE)2010-2018 3.38%2018-2023 3.24%

TRAFFIC COUNTS (VPD)OHIO DR 15,331SAM RAYBURN TOLLWAY 165,765

DEMOGRAPHICS

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WHY DALLAS -FORT WORTH?

The Dallas-Fort Worth region is an innovation hub with a wealth of resources that make it an ideal business location. The DFW region’s attractive quality of life, strong regional and state economy, low cost of living, skilled labor force, pro-business mindset, and absence of corporate and personal income taxes all contribute to the thriving Dallas-Fort Worth location.

DFW INTERNATIONAL AIRPORT IS THE FOURTH BUSIEST AIRPORT IN THE WORLD

- wikipediea.con

DFW METROPLEX HAS OVER 10,000 CORPORATE

HEADQUARTERS, INCLUDING 22 FORTUNE 500 COMPANIES

- wikipedia.com

DFW ADDED THE MOST RESIDENTS OUT OF ANY

OTHER US METRO IN 2017- Real Capital Markets

#6 BEST PLACES FOR BUSINESS & CAREERS

- Forbes

#4 LARGEST METRO IN THE US

- Forbes

#1 BEST CITY IN US FOR JOBS IS THE DALLAS-PLANO-

IRVING AREA- Forbes

#9 MOST POPULOUS CITY IN THE US

- wikipedia.com

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DISCLAIMERSCBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and fa-cilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary du-ties owed to the client(s) it represents in the transaction described in this Memorandum.

This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.

This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the “Owner”), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CBRE, Inc. There-fore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other mate-rials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested par-

ties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner.

Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.

The Owner expressly reserved the right, at its sole discretion, to reject any or all ex-pressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.

By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.

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PLANO CROSSING II 8740 OHIO DRPL ANO, TX 75024

JARED AUBREYSenior Vice President+1 214 252 [email protected]

MICHAEL AUSTRYVice President+1 214 252 [email protected]

EXCLUSIVE MARKETING ADVISORS

plano crossing ii - loopnet...aug-19 to jul-20 $ psf size of improvements 20,279 sf in-place...

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