BAGBY CROSSING I WACO, TX
PRI C I N G & FI N A NC IA L ANALYS IS
B AG BY C R O SSING I
Bagby Crossing I 2324 Marketplace Dr Waco, TX 76711
OFFERING SUMMARY Price Cap Rate Net Operating Income
$3,120,000 6.65% $207,622
Price PSF
$394.84
Occupancy
100.00%
Year Built
2018
Gross Leasable Area
7,902 SF
Lot Size
1.11 Acres
CLICK HERE TO VIEW MARKETING PACKAGE FOR BAGBY CROSSING II
F I N A N C I A L A N A LY S I S
2
PRI C I N G & FI N A NC IA L ANALYS IS
PROJECTED INCOME & EXPENSES
B AG BY C R O SSING I
CURRENT
PSF
EXPENSES
Base Rent - Occupied Space
100%
$214,193
$27.11
Real Estate Taxes
Base Rent - Lease Up Space
0%
$0.00
$0.00
Insurance
$214,193
$27.11
CAM
GROSS POTENTIAL RENT Expense Reimbursements
Electricity
CURRENT
PSF
$45,529
$5.76
$2,350
$0.30
$781
$0.10
Real Estate Taxes
$45,515
$5.76
Water & Sewer
$5,192
$0.66
Insurance
$2,369
$0.30
Grounds Maintenance
$3,126
$0.40
CAM
$12,010
$1.52
Parking Lot Sweeping
$1,969
$0.25
Mgmt. Fee
$1,685
$0.21
Water Backflow Inspection
$298
$0.04
$61,579
$7.79
Fire Alarm Inspection
$179
$0.02
$275,772
$34.90
Fire Alarm Monitoring
$357
$0.05
Irrigation System Maintenance
$97
$0.01
$11,999
$1.52
$8,272
$1.05
$68,150
$8.62
Total Expense Reimbursements EFFECTIVE GROSS REVENUE Operating Expenses Real Estate Taxes
($45,529)
($5.76)
Total CAM
Insurance
($2,350)
($0.30)
Management Fee
CAM
($11,999)
($1.52)
Total Expenses
($8,272)
($1.05)
Total Recoverable Expenses
($68,150)
($8.62)
Net Operating Income
$207,622
$26.27
Mgmt. Fee
3.00%
3.00%
For Financing Options, Please Contact: Greg Holley | Managing Partner High St Capital (O) 469-998-7200 | (C) 714.514.2990 gholley@highstcapital.com
F I N A N C I A L A N A LY S I S
3
RE NT RO L L
Suite
B AG BY C R O SSING I
Tenant
SQ FT
% of SQFT
Start
End
Annual Rent
PSF
Escalation Date
Escalation Amount
Options
Lease Type
100
CBD American Shaman
2332
29.51%
12/14/2017
12/14/2027
$65,296
$28.00
12/14/2022
$30
2x5
NNN
110
ZiZi Nail Lounge
1200
15.19%
12/1/2019
11/30/2024
$31,200
$26.00
12/1/2021
$27
2x3
NNN
115
The Joint
1037
13.12%
1/1/2020
12/31/2024
$24,888
$24.00
1/1/2023
$27
2x5
NNN
117
Hotworx
1708
21.61%
5/20/2020
5/31/2030
$50,459
$29.54
6/1/2025
$31.90
3x5
NNN
120
Smallcakes
1625
20.56%
11/19/2018
11/30/2025
$42,250
$26.00
12/1/2025
$28.60
3x5
NNN
7,902
100.00%
$214,093
$27.09
0
0.00%
7,902
100.00%
Occupied Vacant Total
F I N A N C I A L A N A LY S I S
4
TE NA NT INF ORMAT I ON
B AG BY C R O SSING I
Tenant
The Joint Chiropractic
Corporate/Franchise
Franchise
Locations
500+ Locations
Public/Private
Public (NASDAQ: JYNT)
Website
thejoint.com
Line of Business
The Joint Chiropractic is a nationwide network of chiropractors delivering quality, affordable and convenient chiropractic services to families. The Joint was originally founded in 1999 with a goal of transforming the traditional, often misunderstood concept of routine chiropractic care. The Joint now has more than 500 chiropractic offices and counting.
Tenant
Hotworx
Corporate/Franchise
Franchise
Locations
160+ Locations
Public/Private
Private
Website
hotworx.net
Line of Business
Hotworx is a virtually instructed exercise program created for users to experience the benefits of infrared heat absorption, while completing a 30-minute isometric workout or 15-min High Intensity Interval Training (HIIT) session. Founded in 2014, there are over 160 Hotworx locations in the United States.
Tenant
Smallcakes Cupcakery
Corporate/Franchise
Franchise
Locations
180+ Locations
Public/Private
Private
Website
smallcakescupcakery.com
Line of Business
Smallcakes Cupcakery is an American bakery chain that specializes in scratch-made cupcakes and frostings. Founded by Jeff Martin, Smallcakes’s menu includes seasonal and special flavors that are made in-house daily. Smallcakes has been featured on the Food Network’s “Cupcake Wars” and ABC’s talk show “The View,” leading to an increase in demand across the United States.
PROPERTY DESCRIPTION
5
I N VE S TMENT HI GHLI GHT S
• New Class “A” Construction
B AG BY C R O SSING I
SNAPSHOT
• 100% Occupied, Long-Term NNN Leased Shopping Center • A cross the Street from Amazon’s New 700,000 Sq Ft Distribution Center, which Will Add over 1,000 Jobs in the Immediate Area • A djacent to Central Texas Marketplace — 900,000 Sq Ft of Class A Retail & Waco’s Most Traveled Shopping Center • S trategically Situated on the NW Corner of Interstate 35W & Texas State Highway 6
68,725
$67,579
• 7 5% of Traffic Entering/Leaving Central Texas Marketplace Passes Bagby Crossing
Estimated Vehicle Per Day
Average Household Income
16.6%
140,594
Population Growth 2010-2020
Population: 5 Mile Radius
• Internet-Resistant, Complementary Tenant Mix with Staggered Lease Turnover • Ability to Purchase a Pad Site that will Create Value Added Opportunity • Over 140,594 People in a 5-Mile Radius — Over 16% growth since 2010 • S urrounding National Tenants Include Cabela’s, Ross, Marshalls, Starbucks, Buffalo Wild Wings, Panda Express, Panera Bread, Old Navy, Gap, T-Mobile, Subway, Kohl’s, P.F. Chang’s, Logan’s Roadhouse, and Many More • Future Stability Ensured by High Growth Area Surrounded by Large Companies like Amazon, Baylor Scott White Regional Hospital, ZinkPower, Tractor Supply Distribution Center, Waco ISD Football Stadium, Caterpillar Logistics and Mars Wrigley Confectionery, Just to Name a Few
BAGBY CROSSING I
BAGBY CROSSING II
PROPERTY DESCRIPTION
6
ITI NTTHE L E NEWS
B AG BY C R O SSING I
Tommy Witherspoon Oct 19, 2020
estate circles.
onfirming what has been called Waco’s worst-kept secret, local officials said Monday that Gov. Greg Abbott will be in Waco on Friday to announce that Amazon is building a 700,218-square-feet distribution center and warehouse in Waco’s industrial park. Waco City Manager Bradley Ford confirmed Monday that the Seattle-based online retailing giant has bought land in Waco for the project. McLennan County Judge Scott Felton said the project would be a boon to the economy with up to 1,000 workers. The company has a starting wage of $15 an hour and benefits. “We are very excited that Amazon chose Waco, and it kind of shows that we can handle a Fortune 500 and better company in this community,” Felton said. “We are elated. I think if people are hunting good jobs, this would be a good company to go to. I think this shows all our efforts in workforce training are paying off.” Amazon spokesman Daniel Martin acknowledged in an email that the company has plans for Waco. “Amazon is a great place to work with highly competitive pay, benefits from day-one, and training programs for in-demand jobs,” he said. “Amazon’s land purchase in Waco provides us with the flexibility to respond to the needs of our customers, leverage the talented local workforce and address Amazon’s future network needs. We look forward to announcing our plans with the city of Waco soon.” Speculation has been rife since the Tribune-Herald first reported in July that BL Companies, which is closely associated with Amazon and other large corporations, secured a building permit to begin work at 200 Exchange Parkway. Workers were putting up the metal framework for a structure Monday after weeks of site preparation and infrastructure work. The intended use for the building has remained a mystery, but Amazon’s name has surfaced as the project has been widely discussed in local real
An Abbott spokesman confirmed Monday that the governor will be in Waco on Friday to make an announcement and said additional details will be forthcoming later this week.
C
Amazon has been on a building binge in Texas this year as it cements its dominance in the online arena during the pandemic. Amazon, founded in 1994, is a publicly traded company with 840,000 employees and $280.5 billion in annual revenue. To view this article online, click here.
Proximity of Bagby Crossing to new Amazon distribution center
MARKET OVERVIEW
7
S I T E PL A N
B AG BY C R O SSING I
AVAILABLE PAD SITE
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Scott Baylor hite W
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SUBJECT PROPERTY
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BAGBY CROSSING I
Smallca
Hotworx
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CBD Am eri Shaman can
ZiZi Nail
Lounge
±36,000 SQ FT
BAGBY CROSSING II
R
PROPERTY DESCRIPTION
8
A E R I AL MA P
,90
,72 5
VP D
114
68
8V
PD
B AG BY C R O SSING I
SITE
2 1
3 4 5
13
,10 7V
PD
Future Distribution Center
2
E
1 B
G A
B
Y
V A
Return Center
3 4 5 MARKET OVERVIEW
9
A E R I AL MA P
B AG BY C R O SSING I
BAYLOR UNIVERSITY
McLANE STADIUM
UNIVERSITY HIGH SCHOOL
4 5 1
2
6
3
G BA
1
BY E AV
68
V ,725
PD
2 3
13 7V ,10 PD
4 5 6 MARKET OVERVIEW
10
A E R I AL MA P
B AG BY C R O SSING I UN
IV
ER
SI
TY
DR PEPPER MUSEUM
WACO HIGH SCHOOL
PA
RK
McLANE STADIUM
S
D
R
TEXAS SPORTS HALL OF FAME BAYLOR UNIVERSITY
MAGNOLIA MARKET AT THE SILOS
TEXAS RANGER HALL OF FAME
EXTRACO EVENTS CENTER
VALLE Y
ASCENSION PROVIDENCE
M ILL S D R
BA G
B
Y
A V
E
RICHLAND MALL
UNIVERSITY HIGH SCHOOL SITE CENTRAL TEXAS MARKETPLACE
BAYLOR SCOTT & WHITE
MARKET OVERVIEW
11
LO C AL MA P
B AG BY C R O SSING I
MARKET OVERVIEW
12
REG IONA L MA P
B AG BY C R O SSING I
MARKET OVERVIEW
13
M A R KET S U MMARY
B AG BY C R O SSING I
Waco, TX
OVERVIEW Waco is a city in central Texas and is the county seat of McLennan County. The city is situated along the Brazos River and I-35, halfway between Dallas and Austin. The city had a 2019 population estimate of 139,236, making it the 22nd-most populous city in the state of Texas. The Waco Metropolitan Statistical Area consists of McLennan and Falls Counties, which had a 2019 population estimate of 273,920. Waco was founded in 1849 on the site of a Waco (Hueco) Indian village near Fort Fisher, a Texas Rangers outpost, in a farming and plantation area. After the Civil War, Waco became a river-bridge crossing on cattle trails. Later its economy was based almost exclusively on cotton, and the coming of the railroad stimulated economic growth. World War II brought two large air-force installations (now closed) and the beginning of industrialization. Waco still depends partly on crops and livestock, but manufacturing (including clothing, machinery, tires and glass) and service industries have broadened its economic base. Waco has become a unique tourist destination as well as an appealing place to live and do business because of its rich diversity, abundant
natural resources, convenient location and numerous amenities. Waco is also home to Baylor University, an institution of higher learning with an enrollment of over 19,000 students. Baylor is the oldest continuously operating university in Texas and one of the first educational institutions west of the Mississippi River in the United States. Downtown Waco is home to Magnolia Market, a shopping complex containing specialty stores, food trucks and event space, set in repurposed grain silos originally built in 1950 for the Brazos Valley Cotton Oil Company. The Magnolia Market, operated by Chip and Joanna Gaines of the HGTV TV series Fixer Upper, saw over 1.6 million visitors in 2019. Additionally, Waco is the site of the Cameron Park Zoo, the popular Texas Sports Hall of Fame, and the Texas Ranger Hall of Fame and Museum. Other notable attractions include the Dr Pepper Museum (where the soft drink was first bottled) and Baylor’s Mayborn Museum Complex, which includes a natural history museum and a historic village.
MARKET OVERVIEW
14
D E M OG RA PHIC STAT I ST I CS
B AG BY C R O SSING I
1 Mile
3 Mile
5 Mile
Population
1 Mile
3 Mile
5 Mile
Households:
2010 Population
2,176
39,488
126,929
2010 Households
822
14,983
47,156
2020 Population
3,614
46,044
140,594
2020 Households
1,376
17,659
52,598
2025 Population Projection
4,011
49,011
148,518
2025 Household Projection
1,529
18,836
55,653
Annual Growth 2010-2020
6.60%
1.70%
1.10%
Annual Growth 2010-2020
5.90%
1.50%
1.00%
Annual Growth 2020-2025
2.20%
1.30%
1.10%
Annual Growth 2020-2025
2.20%
1.30%
1.20%
Median Age
32.6
33
31.6
Owner Occupied
835
9,244
27,757
Bachelor's Degree or Higher
24%
15%
22%
Renter Occupied
541
8,414
24,841
2
21
94
Avg Household Size
2.6
2.6
2.6
2
2
2
$31.4M
$360.6M
$1.1B
U.S. Armed Forces
Avg Household Vehicles
Population By Race
Total Consumer Spending
White
2,936
36,501
110,382
Black
388
6,996
21,440
American Indian/Alaskan Native
45
587
1,723
Avg Household Income
$67,579
$58,121
$61,147
Asian
150
785
3,677
Median Household Income
$52,557
$44,278
$43,912
Hawaiian & Pacific Islander
11
91
197
< $25,000
212
4,887
16,467
Two or More Races
85
1,084
3,175
$25,000 - 50,000
444
4,991
12,534
1,560
19,244
45,575
$50,000 - 75,000
252
3,122
8,127
$75,000 - 100,000
160
2,220
6,518
Hispanic Origin
Housing Median Home Value Median Year Built
Demographic data Š CoStar 2020
Income
$138,333
$107,815
$145,138
$100,000 - 125,000
216
1,262
3,871
2004
1969
1974
$125,000 - 150,000
27
408
1,706
$150,000 - 200,000
38
397
1,923
$200,000+
30
371
1,453
MARKET OVERVIEW
15
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.
Commercial Disclaimer STRIVE hereby advises all prospective purchasers of commercial 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 commercial 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 commercial 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 commercial 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 tenants 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 tenants 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 leases, including the likelihood of locating replacement tenants if any of the current tenants should default or abandon the property, and the lease terms that Buyer may be able to negotiate with any potential replacement tenants 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 commercial 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: ӽ that the owner will accept a price less than the written asking price; ӽ that the buyer/tenant will pay a price greater than the price submitted in a written offer; and ӽ 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