richardson restaurant park

SLJSLJ Company, LLC4311 West Lovers Lane, Suite 200Dallas, Texas 75209

www.sljcompany.com

E X C L U S I V E LY O F F E R E D B Y

T Y U N D E R W O O D214.520.8818 x [email protected]

R I C H A R D S O N R E S TA U R A N T PA R KR I C H A R D S O N , T E X A S

Disclaimer: The material contained in this memorandum is confidential, furnished solely for the purpose of considering an investment in the properties described herein, and is not to be used for any other purpose, ormade available to any other person without the express written consent of SLJ Company, LLC. The material is based, in part, upon information obtained from third party sources, which SLJ Company, LLC deems to bereliable. However, no warranty or representation is made by SLJ Company, LLC or its affiliates, agents, or representatives as to the accuracy or completeness of the information contained herein. Prospective investorsshould make their own investigations, projections, and conclusions regarding this investment.

S I TE

DALLAS CBD

HIGH FIVEINTERSTATE 635

FOSSIL CORPORATE HQ

TEXAS INSTRUMENTS CORPORATE HQ TEXAS INSTRUMENTS

NORTH CAMPUS

E X E C U T I V E O V E R V I E WExecutive SummaryInvestment Highlights

P R O P E R T Y O V E R V I E WProperty ProfileDevelopment OverviewRichardson Submarket

T E N A N T O V E R V I E WLease PlanTenant Profiles

F I N A N C I A L O V E R V I E WPricingRent RollOperating Statement

M A R K E T O V E R V I E WDemographicsDallas-Fort Worth Area

T A B L E O F C O N T E N T S

E X E C U T I V E S U M M A R YI N V E S T M E N T H I G H L I G H T S

E X E C U T I V E O V E R V I E W

SLJ Company, LLC (SLJ) has been exclusively retained to offer to qualified investors the opportunity to acquire a 100% fee-simple interest in RichardsonRestaurant Park – Building 1 (the “Property”), a newly constructed 5,940 square foot multi-tenant investment property located within a larger restaurant-focused development in Richardson, Texas. Ideally positioned near the intersection of Central Expressway (U.S. Highway 75) and Spring Valley Road, theProperty is approximately 20 minutes north of Downtown Dallas and prominently positioned parallel to the S Central Expressway service road with directexposure to over 330,000 vehicles per day.

Built in 2016, the Property is 100% leased to three restaurant tenants including The Halal Guys, Pokeworks and Texadelphia with an average base lease termof 8.33 years. All three tenants are established restaurant chains with multiple locations and national brand recognition. Richardson Restaurant Park offersinvestors built-in upside potential with 59.8% of in-place rental subject to contract rent escalations during the primary lease term. Staggered lease expirationsmitigate vacancy risk, and all tenant leases are triple net providing a landlord insulation from increases in operating expenses. The Property’s recentconstruction limits the need for near-term capital improvements creating the potential for years of stable cash flow.

The Property is part of Richardson Restaurant Park, a distinctive restaurant-focused development that offers multiple outdoor dining and common areas withdominate signage visible from Central Expressway and abundant parking. Additionally, since the Property is a part of a larger development, it benefits from thecustomer draw created by a critical mass of unique restaurant offerings plus tenants of the development enjoy an exciting shared restaurant atmosphere,increased sales and heavy mealtime traffic. The Property offers an investor the rare benefit of being part of Richardson Restaurant Park without the obligationof actively operating the common areas plus a bite-sized deal price point. There is currently one other fully occupied building in the development with threeadditional buildings expected to be pre-leased and developed soon.

Richardson Restaurant Park is strategically positioned in the heart of Richardson’s Telecom Corridor which is home to more than 5,000 businesses.Richardson, Texas has experienced a dramatic expansion in business development in recent years which has increased the total labor force within a 30-minute commute of the Telecom Corridor to nearly 1.9 million people. The Property is also just minutes away from new developments, including CityLine, atU.S. Highway 75 and President George Bush Turnpike. Situated near the intersection of U.S. Highway 75 and Spring Valley Road, the Property enjoysexcellent visibility and access to a total combined traffic count exceeding 375,000 vehicles per day and just moments away from the heavily commuted “HighFive” intersection of U.S. Highway 75 and Interstate 635.

Overall, Richardson Restaurant Park offers an investor a high-quality, stable, income-producing asset ideally positioned in a restaurant-focused experientialdevelopment in one of the most sought-after submarkets in North Texas.

R I C H A R D S O N R E S T A U R A N T P A R K I | 4

E X E C U T I V E S U M M A R Y

I N V E S T M E N T H I G H L I G H T S

Located in the heart of Richardson’s Telecom Corridor, the Property hasexposure to the nearly 1.9 million people working within a 30-minute commuteof the Telecom Corridor. The Property is also in close proximity to majoremployers and new developments such as CityLine.

E XC E LLE N T LO C AT I O N

All three tenants are established restaurant chains with multiple locations andnational brand recognition. Lease expirations are staggered to mitigatevacancy risk and all tenant leases are triple net providing a landlord insulationfrom increases in operating expenses.

N N N LE A S E D M U LT I -T E N A N T P R O P E R T Y

The Property benefits from exposure to heavy traffic counts consisting of morethan 334,000 vehicles per day on Central Expressway and over 42,000vehicles per day on Spring Valley Road.

H U G E T R A F F I C C O U N TS

Richardson has experienced over 22% population growth in the last decade aswell as a major increase in area business development. There has been over4,000,000 square feet of office space constructed since 2010 with majorcorporate and divisional headquarters, such as State Farm and RealPage,popping up all over Richardson. This increase in employment centers has risendaytime employment within a 10-mile radius of the Property to over 668,000.

B O O M I N G DA LL A S S U B M A R K E T

P R E M I E R V I S I B I L I T Y A N D A C C E S STwo dramatic 40-foot tall multi-tenant signs provide excellent visibility tohighway vehicular traffic. Positioned near the intersection of Spring ValleyRoad and U.S. Highway 75, the Property is highly visible and accessible fromthese heavily traveled thoroughfares. The Property also offers ease of accessto I-635 and President George Bush Turnpike.


The Property is part of Richardson Restaurant Park, a distinctive restaurant-focused development that offers multiple outdoor dining and common areaswith dominate signage visible from Central Expressway and abundant parking.

R E STAU R A N T- FO C U S E D D E V E LO P M E N T

P R O P E R T Y P R O F I L ED E V E L O P M E N T O V E R V I E WR I C H A R D S O N S U B M A R K E T

P R O P E R T Y O V E R V I E W

± 3 3 4 , 0 0 0 VPD

S E R V I C E R O A D± 2 9 , 0 0 0 V P D C E N T R A L E X P R E S S W AY

BUILDING 1 BUILDING 2


P R O P E R T Y P R O F I L E

Richardson Restaurant Park

P R O P E R T Y N A M E746 S Central Expy, Richardson, TX 75080

A D D R E S S1

B U I LD I N G

100%

O C C U PA N CY2016

Y E A R B U I LT

24 designated parking spaces340 shared parking spaces

PA R K I N G

5,940 Square Feet

N E T R E N TA B LE A R E A


Total Development Area: ±5.085 AcresBuilding 1 Land Area: 21.2% (±14,288 SF)

L A N D A R E A

D E V E L O P M E N T O V E R V I E W


FL

OY

D R

OA

D

J A M E S R O A D

C O M M O N A R E A

B U I L D I N G A R E A

B U I L D I N G 2

F U T U R ED E V E L O P M E N T

B U I L D I N G 1

S I TE

Located in the heart of Richardson’s Telecom Corridor,Richardson Restaurant Park, is a distinctive restaurant-focused development that offers multiple outdoordining and common areas with two dramatic 40-foottall multi-tenant signs visible from Central Expresswayand abundant parking. Richardson Restaurant Parkbenefits from the customer draw created by a criticalmass of unique restaurant offerings plus tenants of thedevelopment enjoy an exciting shared restaurantatmosphere, increased sales and heavy mealtimetraffic. A variety of cuisines are featured by therestaurants in the Park, including Halal Guys,Texadelphia, Pokeworks, Adda by Jimmy’s, OMGTacos and Dog Haus Biergarten. There is currentlyone other fully occupied building in the developmentwith three additional buildings expected to be pre-leased and developed soon.

B U I L D I N G 1

B U I L D I N G 2

R I C H A R D S O N S U B M A R K E T

Richardson is the second largest employment center in theDallas-Fort Worth Metroplex and includes a diverse range ofbusinesses. There are currently 15 companies located inRichardson with over 1,000 employees. Some of the largestemployers in Richardson include Blue Cross Blue Shield of Texas,State Farm, Texas Instruments, Raytheon, Fossil, Fujitsu andothers. Richardson offers many distinct advantages tocorporations looking to relocate to North Texas.

• Highest concentration of technology workers in the GreaterDallas area - 1.9 million total labor force within a 30-minutecommute

• Strategically located between major freeways for easy commuteraccess

• Home to the University of Texas at Dallas – a Carnegie “TierOne” university

• Highly regarded K-12 educational systems with over 90%college-bound graduates

• 4 existing DART rail stations (2 more rails underway) and publicbus service

• Extensive housing options from entry level to executive homes,town homes, upscale multifamily and transit-orienteddevelopments

• 800+ acres of parks and recreational facilities, golf courses, andover 40 miles of hike & bike trails

• Arts & music festivals throughout the year, plus first-classentertainment venues

• Over 250 dining options, from traditional American to exoticethnic cuisines

AT T R A CT I V E C O R P O R AT E LO C AT I O N

R I C H A R D S O N R E S T A U R A N T P A R K I | 1 0

S I T E

CITYLINE

RAYTHEON

STATE FARM

PGBTR I C H A R D S O N

Population: 124,213Median Income: $80,953

Median Home Value: $359,900

P L A N OPopulation: 285,537

Median Income: $93,012Median Home Value: $425,000

BLUE CROSS BLUE SHIELD OF TEXAS

SHOPS AT EASTSIDE

GEICO

REALPAGE

TI RFAB CAMPUS

L E A S E P L A NT E N A N T P R O F I L E S

T E N A N T O V E R V I E W

L E A S E P L A N

2 0 2 5 2 0 2 6 2 0 2 7

L E A S E E X P I R A T I O N S


SUITE 1202,100 SF

THE HALAL GUYS

V A C A N T

SUITE 1002,757 SF

TEXADELPHIA

SUITE 1101,083 SF

POKEWORKS

RISERROOM

T E N A N T P R O F I L E S

T E X A D E L P H I A

WEBSITE www.texadelphia.com

OCCUPIED SQUARE FEET 2,757

# OF YEARS OCCUPIED 1

LEASE EXPIRATION 12/31/2025

RENT (PSF) $30.00 NNN

“Soon after the first Texadelphia opened, the wordspread of Texadelphia’s Cheesesteaks, FreshQueso, and house-made Guacamole and amazinglyaddictive Mustard Blend. With a lot of hard workand the help of our fans, we’ve opened morerestaurants with the same passion and commitmentto food, our friends and a truly unique experience.”Texadelphia currently has 12 locations acrossTexas and Oklahoma.

“The Halal Guys is a global enterprise, with over400+ new restaurants in development worldwide.We’re currently bringing our great food and theultimate customer experience to marketsthroughout the United States as well asinternationally. We are one of the fastest-growingrestaurant chains in America, with more locations tocome.”

T H E H A L A L G U Y S

WEBSITE www.thehalalguys.com





S U I T E 1 0 0S U I T E 1 2 0

“Our chef driven kitchen brings an authentic tasteof the islands to Pokeworks with nationallyrecognized collaborators from across the country.Our hand-crafted Signature Works and limited-timebowls offer unique flavors that draw inspirationsfrom a mix of cultures from Hawaii and across theglobe.” There are currently 59 locations across theUnited States, Canada and Mexico.

P O K E W O R K S

WEBSITE www.pokeworks.com





S U I T E 1 1 0


P R I C I N GR E N T R O L LO P E R A T I N G S T A T E M E N T

F I N A N C I A L O V E R V I E W

P R I C I N G

P R I C E $3,577,357 G R O S S L E A S E A B L E A R E A 5,940 SF

C A P R A T E 5.75% N E T O P E R A T I N G I N C O M E $205,698

A V E R A G E P R I M A R Y L E A S E T E R M 8.33 Years A V E R A G E R E N T P E R S F $34.63 NNN


% OF LEASE TERM ANNUAL BASE RENT ESCALATIONS LEASE RENEWALSUITE TENANT SF GLA START END PSF TOTAL DATE PSF TOTAL TYPE OPTIONS

100 Texadelphia 2,757 46.41% 1/1/21 12/31/25 $30.00 $82,710 Percentage Rent: six percent (6%) of Gross Sales over the breakpoint.

NNN Three (3) 5-year options at:1st - $34.50

Months: % Breakpoint: 2nd - $39.687-18 $827,100 3rd - $45.63

19-30 $1,010,90031-60 $1,378,500

110 Pokeworks 1,083 18.23% 2/1/18 1/31/27 $36.00 $38,988 Feb-23 $39.60 $42,887 NNN Two (2) 5-year options at:1st - $43.562nd - $47.92

120 The Halal Guys 2,100 35.35% 11/1/17 12/31/26 $40.00 $84,000 Jan-22 $44.00 $92,400 NNN Two (2) 5-year options at:1st - $50.602nd - $58.19

TOTAL 5,940 100% $205,698

OCCUPIED 5,940 100.0%VACANT 0 0.0%TOTAL 5,940

R E N T R O L L


E X P E N S E S

CURRENT PER SF

REAL ESTATE TAXES $41,119 $6.92

INSURANCE $4,427 $0.75

COMMON AREA MAINTENANCE

BuildingRepairs & Maintenance $1,042 $0.18Alarm Monitoring $1,215 $0.20Trash $5,729 $0.96Recycling $990 $0.17Utilities – Water $1,042 $0.18Telephone/Internet $521 $0.09Total $10,538 $1.77

Common AreaManagement $890 $0.15Miscellaneous $763 $0.13Landscape $4,450 $0.75Utilities – Electric $3,051 $0.51Fountain $636 $0.11Porter $1,526 $0.26Irrigation $2,543 $0.43Total $13,857 $2.33

TOTAL COMMON AREA MAINTENANCE $24,395 $4.11

T O T A L E X P E N S E S $ 6 9 , 9 4 1 $ 1 1 . 7 7

I N C O M E & E X P E N S E S

12-MONTH PER SF

BASE RENTOccupied Space $205,698 $34.63

GROSS POTENTIAL RENT $205,698 $34.63

EXPENSE REIMBURSEMENTS

Real Estate Taxes $41,119 $6.92

Insurance $4,427 $0.75

Common Area Maintenance $24,395 $4.11

TOTAL EXPENSE REIMBURSEMENTS $69,941 $11.77

GROSS POTENTIAL INCOME $275,639 $46.40

EFFECTIVE GROSS INCOME $275,639 $46.40

EXPENSES

Real Estate Taxes $41,119 $6.92

Insurance $4,427 $0.75

Common Area Maintenance $24,395 $4.11

TOTAL EXPENSES $69,941 $11.77

NE T OP E R AT I NG I NC OM E $ 2 0 5 , 698 $ 3 4 . 63

O P E R A T I N G S T A T E M E N T


D E M O G R A P H I C SD A L L A S - F O R T W O R T H A R E A

M A R K E T O V E R V I E W

H I G HF I V E

± 5 0 0 , 0 0 0 V P D

R I C H A R D S O NPopulation: 124,213


UNIVERSITTY OF TEXASAT DALLAS

±30,000 STUDENTS & EMPLOYEES

S I T E

NorthwoodClub

Duck CreekGolf Club

Sherrill ParkGolf Course

Canyon CreekCountry Club

DALLAS COLLEGE RICHLAND CAMPUS

±20,000 STUDENTS & EMPLOYEES

TEXAS INSTRUMENTSNORTH CAMPUS

TEXAS INSTRUMENTSRFAB CAMPUS

TEXAS INSTRUMENTSCORPORATE HQ

METHODIST RICHARDSON

MEDICAL CENTER

FUJITSUAMERICA HQ

RAYTHEON

STATE FARM

CITYLINEBLUE CROSS

BLUE SHIELD OF TEXAS HQ

REALPAGE CORPORATE OFFICE

GEICO CORPORATE OFFICE

DIGITAL DALLAS69-ACRE DATA CENTER

N O R T H D A L L A SPopulation: 38,726


P L A N OPopulation: 285,537


G A R L A N DPopulation: 238,411


FOSSILCORPORATE HQ


2 0 2 0 D E M O G R A P H I C S

C O N S U M E RS P E N D I N G

( $ 0 0 0 S )

132 ,567

# O FB U S I N E S S E S

1 ,144

# O F E M P L O Y E E S

13 ,3871 M

ILE

A V E R A G EH O U S E H O L D

I N C O M E

$91K

P O P U L A T I O N

431KH O U S E H O L D S

174KM E D I A N

H O M EV A L U E

$285K

5 M

ILE

P R O J E C T E DP O P . G R O W T H

2 0 2 0 - 2 0 2 5

6 .19%

M E D I A N A G E

36 .0

3 M

ILE P O P U L A T I O N

< 3 0 M I N U T EC O M M U T E

64 .3%

E M P L O Y E DP O P U L A T I O N

67 .2%

C O L L E G EE D U C A T E D

P O P U L A T I O N

70 .0%


D A L L A S / F O R T W O R T H A R E A

I N T R O D U C T I O NThe Dallas/Fort Worth Metroplex (Dallas/Fort Worth, DFW) is a dynamic 13-county region made up of Dallas, Fort Worth, and another 150 municipalities.The Dallas area is the largest metropolitan area in Texas and the fourth-largest in the United States spanning an area of 9,286 square miles and apopulation of approximately 7.8 million people. As the fastest growingmetropolitan area, DFW led the nation in population growth over the last year,adding 109,000 people in 2020 contributing to the addition of over 1.3 millionpeople since 2010.

By the year 2040, it is projected that over 10.5 million people will be living inthe Metroplex. DFW also has the largest, most educated workforce in thestate of Texas, totaling three million people, and leads the state in publicuniversity and community college students. The largest of the majoruniversities within the area are the University of Texas at Arlington (41,712),the University of North Texas (38,094), and the University of Texas at Dallas(27,638).

DFW accounts for approximately one-third of the state’s Gross DomesticProduct and approaches $60 million in annual direct imports and exports.The Metroplex is currently the fifth-largest global exporter in the country andlargest regional exporter to Canada, Mexico and China. Over the pastdecade the area has enjoyed a sustained period of economic and populationexpansion as local companies increase their business capacity and othersrelocate to this desirable, central U.S. location.

2 0 1 7M E D I A N H H

I N C O M E

2 0 2 0 P O P U L A T I O N

7.8M

2 0 2 0M E D I A N

H O U S E H O L DI N C O M E

$77K

2 0 2 0 M E D I A N A G E

35.2

D O W N T O W N D A L L A S


E C O N O M I C R E S I L I E N C ENationally recognized as one of the best markets for business, Forbes named Dallas the 6th Best City for Businesses and Careers in 2018. Dallas/FortWorth has recently established itself as the new destination for corporate relocation. With companies such as Toyota, Boeing, Liberty Mutual Insurance, JCPenney and FedEx Office, JP Morgan Chase, and others calling Plano’s new Legacy West development home, the population and job growth in NorthTexas is unprecedented.

In addition, advancing information technology has created a need for data centers across the country and the Metroplex has proven to be a preferred site.Rare occurrence of natural disaster, a central location and plenty of available electric power provide the ideal setting for these information centers. Dallasalso has a high volume of jobs, a high ratio of jobs per candidate and a high number of available jobs to population.

Dallas/Fort Worth is home to more than 10,000 regional and corporate headquarters, the largest concentration in the U.S. The Metroplex is also home to23 Fortune 500 headquarters and four Global 500 headquarters, according to Fortune Magazine in 2020. This includes Irving-based ExxonMobil, whichranked 3rd both nationally and globally, and AT&T, which was ranked ninth on the 2020 list. As the Southwest’s leading business and financial center, thearea boasts the largest wholesale market in the world. With fundamentals that few other markets can match, DFW has capitalized on its central U.S.location, unparalleled transportation network, operating and living costs well below national averages, pro-business government, critical mass of existingcorporate headquarters and offices, and favorable year-round climate. The latest influx of population has generated a very young, diverse mix of citizens(median age of 34.1, compared to the national average of 37.4) further benefiting the economic market. The area boasts a major metropolitan quality of lifewith amenities including the arts, professional sports organizations and a wide array of entertainment destinations. Among the largest industries in the areaare health, tourism, logistics, electronic commerce and financial services. The area has also become an attractive relocation destination for outsideemployers. Several of the newly arriving companies cited lower costs of doing business as well as proximity to transportation, including the Dallas/FortWorth International Airport, the network of interstates and highways, and the area’s commuter and freight rail network.

D A L L A S A R T S D I S T R I C T


T R A N S P O R T A T I O N A D V A N T A G E SDallas/Fort Worth is served by an excellent infrastructure of highways and interstates, rail, majorairports and public transportation systems. Home to some of America’s largest inland ports, the centrallocation and international airport system give businesses a competitive advantage in the national andinternational marketplace. Markets anywhere in the country or the world can be easily accessed fromthe region, making DFW a center of distribution activity for regional, national and internationaloperations.

Dallas/Fort Worth International Airport, larger than the island of Manhattan, is the fourth-busiest airportin the country and the twelfth-busiest airport in the world in terms annual passenger counts. DFWAirport logs approximately 700,000 annual flights that service nearly 67 million passengers to 244worldwide destinations. Home to American Airlines, the world’s largest carrier, DFW Airport has earneda reputation as one of the best-operating airports in the world.

Its economic impact on the North Texas economy totals more than $37 billion and the airport supportsover 228,000 full-time jobs. Additionally, the $2.7 billion Terminal Renewal and Improvement Program(TRIP) is nearing completion, and will further expand the economic impact made by DFW Airport. TheTRIP Program is enhancing areas throughout Terminals A, B and E, including, concessions, securitycheckpoints, parking and self-service ticketing areas. Dallas is also home to Love Field, home base forSouthwest Airlines and one of the premier close-in airports in the nation. Located in the heart of Dallas,Love Field provides a convenient and efficient airport serving both commercial airline and corporateuser needs, transporting seven million passengers annually. With the passage of the WrightAmendment Reform Act in 2006, Wright Amendment restrictions were completed repealed in 2015,allowing Southwest Airlines to add additional nonstop flights across the country. In 2014, a $519 millioncapital improvement project was completed that includes terminal upgrades and facility expansion.

Dallas Area Rapid Transit (DART) is an extensive network of modern public transit services. DARTcovers 700 square miles in Dallas and 12 surrounding suburban communities, serving nearly 65 millionpassengers annually. In conjunction with DART Rail, Trinity Railway Express (TRE) and bus services,DART moves more than 360,000 passengers each day across the Metroplex. A total of 27 privateprojects were announced in 2014 & 2015, 11 of which were characterized as "Planned or Proposed."Potential spending for projects "Planned or Proposed" could result in $5.1 billion of total spending in theregion which would support over 31,000 jobs and pay almost $2 billion. In terms of infrastructure, DFWis served by six interstates, seven other U.S. highways and numerous state highways. Interstate 35serves as a north and south artery throughout the Metroplex and the central U.S., stretching from theUS-Mexico border to Duluth, Minnesota. Interstate 20 is a major east-west artery that continues 1,538miles to connect DFW with other major southern cities including Birmingham and Atlanta. Interstate635 partially loops Dallas and links commuters to several major thoroughfares such as the Dallas NorthTollway, US-75 (North Central Expressway) and Interstate 30. The George Bush Turnpike is Dallas’newest 55-mile, six-lane, limited access expressway passing through or along Dallas and surroundingsuburbs.

D A R T T O D F W


SLJSLJ Company, LLC4311 West Lovers Lane, Suite 200Dallas, Texas 75209

www.sljcompany.com

E X C L U S I V E LY O F F E R E D B Y

T Y U N D E R W O O D214.520.8818 x [email protected]

richardson restaurant park

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