Brazos Shopping Center - Mineral Wells, TX by STRIVE

BRAZOS SHOPPING CENTER MINERAL WELLS, TX

PRICING & FINANCIAL ANALYSIS

B R AZO S SH O P P ING C E NT E R

Brazos Shopping Center 2801 US-180 Mineral Wells, TX 76067

OFFERING SUMMARY Price Cap Rate Net Operating Income Price PSF Occupancy Year Built Roof/Faรงade Gross Leasable Area Lot Size

$4,000,000 6.38% $255,261 $36.45 75.7% 1970 New - 2017/2018 109,726 SF 7.91 Acres

F I N A N C I A L A N A LY S I S

PRICING & FINANCIAL ANALYSIS

B R AZO S SH O P P ING C E NT E R

PROJECTED INCOME & EXPENSES Base Rent - Occupied Space GROSS POTENTIAL RENT

75.7%

CURRENT

PSF

$429,340

$3.91

$429,340

$3.91

Expense Reimbursements CAM Recoveries Total Expense Reimbursements EFFECTIVE GROSS REVENUE

EXPENSES

CURRENT

PSF

Real Estate Taxes

$65,894

$0.60

Insurance

$48,000

$0.44

$3,672

$0.03

CAM $6,872

$0.06

Contract Labor

$6,872

$0.06

Repairs & Maintenance

$23,830

$0.22

$436,210

$3.98

Security

$10,400

$0.09

Utilities

$16,612

$0.15

Total CAM

$54,514

$0.50

Management Fee

$12,542

$0.11

$180,949

$1.65

Operating Expenses Total CAM

$54,514

$0.50

Management Fee

$12,542

$0.11

Total Insurance

$48,000

$0.44

Total Real Estate Taxes

$65,894

$0.60

Total Recoverable Expenses

$180,949

$1.65

Net Operating Income

$255,261

$2.33

Total Expenses

F I N A N C I A L A N A LY S I S

RE NT RO L L Tenant

B R AZO S SH O P P ING C E NT E R Suite

SQ FT

% of SQFT

Lease Dates

Minimum Rent

Recoveries

Total

Start

End

Annual

Monthly

PSF

Annual

PSF

Revenue

% of Rev

Phil Garrett

700

0.64%

10/02

03/22

$6,168

$514

$8.81

$180

$0.26

$6,348

1.46%

Security Finance

770

0.70%

09/10

08/20

$6,348

$529

$8.24

$0.00

$6,348

1.46%

Metro PCS

1,440

1.31%

03/15

02/21

$12,233

$1,019

$8.49

$300

$0.21

$12,533

2.87%

Cake Cravings

700

0.64%

12/15

03/22

$8,040

$670

$11.49

$300

$0.43

$8,340

1.91%

The Edge Salon

1,225

1.12%

06/16

05/22

$9,180

$765

$7.49

$360

$0.29

$9,540

2.19%

Emerald Lane Gifts

966

0.88%

06/16

03/22

$7,260

$605

$7.52

$360

$0.37

$7,620

1.75%

Available

864

0.79%

$0.00

0.00%

20-21

1,400

1.28%

09/16

08/21

$8,040

$670

$5.74

$360

$0.26

$8,400

1.93%

Available

1,560

1.42%

$0.00

0.00%

Available

7,300

6.65%

06/19

MTM

$0.00

0.00%

First Travel

924

0.84%

09/02

09/20

$4,476

$373

$4.84

$228

$0.25

$4,704

1.08%

Republican Party

1,320

1.20%

$0.00

0.00%

Sit n Sip Books

14&15

11,234

10.24%

07/19

06/22

$33,600

$2,800

$2.99

$2,404

$0.21

$36,004

8.25%

180 Signs

12-13

3,200

2.92%

07/17

06/22

$12,696

$1,058

$3.97

$700

$0.22

$13,396

3.07%

Available

1,600

1.46%

$0.00

0.00%

El Paseo

9-10

7,690

7.01%

11/02

07/22

$44,400

$3,700

$5.77

$0.00

$44,400

10.18%

Hibbett's Sports

6,000

5.47%

03/12

04/22

$54,255

$4,521

$9.04

$780

$0.13

$55,035

12.62%

Available

2,889

2.63%

$0.00

0.00%

Deluxe Nail & Spa

1,500

1.37%

11/17

10/22

$21,000

$1,750

$14.00

$600

$0.40

$21,600

4.95%

Farmer's Insurance

2,656

2.42%

03/19

04/22

$19,308

$1,609

$7.27

$0.00

$19,308

4.43%

Mineral Wells Nutrition

576

0.52%

07/19

06/21

$6,300

$525

$10.94

$300

$0.52

$6,600

1.51%

3-4

31,212

28.45%

08/94

01/25

$131,440

$10,953

$4.21

$0.00

$131,440

30.13%

Available

12,400

11.30%

$0.00

0.00%

Ace Hardware

9,600

8.75%

03/15

02/20

$44,596

$3,716

$4.65

$0.00

$44,596

10.22%

Total Count/GLA

109,726

100%

Totals

$429,340

$35,778

$436,211

100.00%

Occupied

83,113

75.7%

Available

26,613

24.3%

$5.25

81,793

100.0%

Ken Engle, CPA

Bealls

Total Avg Rent

$6,872

F I N A N C I A L A N A LY S I S

L E A SE PROVIS ION S

Tenant

B R AZO S SH O P P ING C E NT E R

Suite

SQ FT

Base Rental Increases

Renewal Options

User Restrictions & Exclusive Rights

Date

PSF

Options

Date

PSF

Phil Garrett

700

1x3

4/1/2022

Security Finance

770

Metro PCS

1,440

Exclusive Right to wireless sales, service and accessories in the center

Cake Cravings

700

1x3

The Edge Salon

1,225

1x3

6/1/2022

CPI

Emerald Lane Gifts

966

1x3

6/1/2021

CPI

Available

864

20-21

1,400

1x3

9/1/2019

CPI

Available

1,560

Available

7,300

1x5

6/1/2019

CPI

First Travel

924

1x3

10/1/2020

CPI

Republican Party

1,320

Sit n Sip Books

14&15

11,234

7/1/2019 1/1/2020

$2.99 $3.42

1x3

7/1/2022

CPI

180 Signs

12-13

3,200

Available

1,600

El Paseo

9-10

7,690

Hibbett's Sports

6,000

2x5

5/1/2022 5/1/2027

$10.00 $11.00

Available

2,889

Deluxe Nail & Spa

1,500

1x5

11/1/2022

CPI

Farmer's Insurance

2,656

Mineral Wells Nutrition

576

1x3

7/1/2021

CPI

3-4

31,212

2/1/2020

$5.25

12,400

3x5

3/1/2020 3/1/2025 3/1/2030

CPI CPI CPI

Ken Engle, CPA

Bealls Available Ace Hardware TOTAL

9,600

109,726

F I N A N C I A L A N A LY S I S

TE NA NT INF ORMAT I ON

B R AZO S SH O P P ING C E NT E R

DBA

ACE Hardware

Entity on Lease

Leslie Bradshaw, LLC

Corporate/Franchise

Franchise

Locations

5,000+

Website

www.acehardware.com

Line of Business

Ace Hardware Corporation is an American hardware retailersâ&#x20AC;&#x2122; cooperative based in Oak Brook, Illinois. It is the worldâ&#x20AC;&#x2122;s largest hardware retail cooperative, and the largest nongrocery American retail cooperative. It first reached $1 billion in wholesale sales in 1985 and $5 billion in 2015. As of 2016, it has over 4,800 locations in 60 countries.

DBA

Bealls

Entity on Lease

3 Beall Brothers 3, Inc.

Corporate/Franchise

Corporate

Locations

850+ Stage Stores brand locations

Website

www.stage.com

Line of Business

Bealls is an American chain of department stores, owned by Stage Stores Inc. The store specializes in retailing desirable brand name apparel, accessories, cosmetics, footwear and housewares. The chain overlaps with the Florida-based Bealls chain, although the two are not related. In markets where the two chains overlap, the Florida chain operates as Burkes Outlet.

DBA

Hibbett Sports

Entity on Lease

Hibbett Sporting Goods, Inc.

Corporate/Franchise

Corporate

Locations

1,000+

Website

www.hibbett.com

Line of Business

Hibbett Sports operates sporting goods stores offering footwear, athletic equipment and apparel products. As of 2018, the company operated over 1,050 stores in 35 states in small to mid-sized markets, predominately in the Southeast, Southwest, Mid-Atlantic and the lower Midwest regions of the United States.

PROPERTY DESCRIPTION

TE NA NT INF ORMAT I ON

B R AZO S SH O P P ING C E NT E R

DBA

MetroPCS

Entity on Lease

Wireless Time, LLC

Corporate/Franchise

Franchise

Locations

10,500+

Website

www.metropcs.com

Line of Business

MetroPCS is a prepaid wireless service in the United States that is part of T-Mobile US, Inc. MetroPCS provides nationwide talk, text, and data depending on the plan services using T-Mobile USâ&#x20AC;&#x2122; GSM, HSPA, HSPA+ and 4G LTE networks.

DBA

Security Finance

Entity on Lease

Security Finance of Texas, LP

Corporate/Franchise

Corporate

Locations

1,000+

Website

www.security-finance.com

Line of Business

Security Finance is lending company that provides easy and safe installment loans. Founded in 1955 in South Carolina, Security Finance is licensed to offer traditional personal installment loans, which vary in amount and terms based on the state in which the loan is issued.

DBA

El Paseo Mexican Restaurant

Entity on Lease

Hector Lerma

Corporate/Franchise

Corporate

Locations

Website

www.elpaseomex.com

Line of Business

El Paseo is a Mexican restaurant founded in the mid-1980s. El Paseo serves a wide variety of entrees including traditional Mexican cuisine as well as non-traditional fare, including some menu items exclusive to El Paseo. The restaurant also offers a full-service bar and a unique wine selection.

PROPERTY DESCRIPTION

I N VE S TMENT HI GHLI GHT S

B R AZO S SH O P P ING C E NT E R

• Very Low Price Per Square Foot: At $36.45 psf the Brazos Shopping Center offers one of the lowest prices per square foot for a shopping center that has hit the market in many years. This creates a very low basis in the property and creates a pathway for significant upside.

• Significant Upside: At 76% current occupancy, The Brazos Shopping Center offers lease up opportunity. With one space at 12,400 sf, one at 7,983 sf, several in the 2,000 sf range all the way down to 864 sf, there are size ranges for every tenant type and size without having to spend extra ordinary tenant improvement costs to split spaces.

• Capital Investment: The property received a new roof and the store fronts received new façades in 2018. These will likely attract new tenants to the property.

• Up-and-Coming Area: There has been significant investment in the Mineral Wells area including the recent purchase of the Crazy Water Hotel along with several other buildings with an eye towards redevelopment and a resurgence of the city.

• Low Rental Rates: The average rental rate in the property is only $5.25 psf. This metric also points to significant possible upside in both the rental rates and the overall NOI. PROPERTY DESCRIPTION

S I T E PL A N

B R AZO S SH O P P ING C E NT E R

5 14-15 17

12-13 11

9-10

3-4

18 WALKWAY

NOT A PART

20-21 22 23 24 25

NOT A PART

26 27 28

Suite

Tenant

Phil Garrett

Security Finance

Metro PCS

SQ FT

Suite

Tenant

SQ FT

700

14&15

Sit n Sip Books

11,234

770

12-13

180 Signs

3,200

1,440

Available

1,600

Cake Cravings

700

9-10

El Paseo

7,690

The Edge Salon

1,225

Hibbett's Sports

6,000

Emerald Lane Gifts

966

Available

2,889

Available

864

Deluxe Nail & Spa

1,500

20-21

Ken Engle, CPA

1,400

Farmer's Insurance

2,656

Available

1,560

Mineral Wells Nutrition

576

Available

7,300

3-4

Bealls

31,212

First Travel

924

Available

12,400

Republican Party

1,320

Ace Hardware

9,600

PROPERTY DESCRIPTION

A E R I AL MA P

B R AZO S SH O P P ING C E NT E R

MINERAL WELLS HIGH SCHOOL

US HWY 180

26,000 VPD

PROPERTY DESCRIPTION

L E A SE COMPA RABLES

Property Brazos Shopping Center 2801 E Hwy 180 Â« Mineral Wells, TX 76067

B R AZO S SH O P P ING C E NT E R

GLA

Yr Built/ Renovated Occupancy

Major Tenants

Available SF

Rental Rates

NNN

109,726

1970

75.7%

Bealls, Ace Hardware, Hibbetts Sports, Metro PCS

26,613

$3.97 - $16.15

Mineral Wells Crossing 1 937 FM 1821 Mineral Wells, TX 76067

26,959

2007

72.1%

Dollar Tree, CATO, Sally Beauty, VIP Nails & Spa

7,519

$8.25 - $18.00

$3.83

Wal-Mart Shadow Retail Strip 2 101-113 FM 1821 Mineral Wells, TX 76067

7,490

2007

100.0%

Edward Jones, Check 'N Go, AT&T Wireless

$15.86 - $22.28

$6.07

63,609

1989

94.0%

VF Outlet, Bon Worth & Easy Spirit

3,816

$10.00 - 12.00

$4.45

Brazos River Factory Stores 3 4500 Highway 180 E Mineral Wells, TX 76067

PROPERTY DESCRIPTION

L E A SE COMPA RABLES

B R AZO S SH O P P ING C E NT E R

Brazos Shopping Center 1

Mineral Wells Crossing

Wal-Mart Shadow Retail Strip

Brazos River Factory Stores

2 3

PROPERTY DESCRIPTION

LO C AL MA P

B R AZO S SH O P P ING C E NT E R

Brazos Mall

PROPERTY DESCRIPTION

REG IONA L MA P

B R AZO S SH O P P ING C E NT E R

Brazos Mall

PROPERTY DESCRIPTION

M A R KET S U MMARY

B R AZO S SH O P P ING C E NT E R

Dallas - Fort Worth, TX

OVERVIEW Dallas encompasses half of the Dallas-Fort Worth Metroplex and is the third-largest city in Texas and the ninth-largest city in the United States. Dallas is home to the third-largest concentration of Fortune 500 companies in the country and is the largest economic center of the Dallas-Fort Worth metropolitan area. The Metroplex has strong submarket occupancy rates, is home to more shopping centers per capita and has one of the largest concentrations of corporate headquarters for publicly traded companies in the United States. The city is the largest economic center of the 12-county Dallas–Fort Worth–Arlington metropolitan area, which had a population of 7,399,662 people as of July 1, 2017. The metropolitan economy is the fourth-largest and third-fastest growing in the United States, with a 2017 real GDP of $535.5 billion. In 2018, Dallas had both the highest job growth rate and the most jobs added in the nation, and is the fourth-largest employment center in the nation (behind New York City, Los Angeles, and Chicago) with more than three million non-farm jobs. In the

latest rankings released in 2018, Dallas was rated as a “beta plus” world city by the Globalization and World Cities Study Group & Network. Dallas is also ranked 14th in world rankings of GDP by the Organization for Economic Co-operation and Development. The Dallas-Fort Worth Metroplex has one of the largest concentrations of corporate headquarters for publicly traded companies in the United States. The city of Dallas has nine Fortune 500 companies, and the DFW region as a whole has 22. Dallas is the best-ranked city on the Regulatory Climate Index thanks to its efficient local regulations. Entrepreneurs and small businesses can expect a welcoming business environment across all five areas of local regulation. Dallas scores above average across each meaningful measure of an interaction that a business has with a local government agency through procedure, time, and cost. These rankings reflect the city’s continuing efforts to develop programs and initiatives to strengthen the business environment, provide access to capital, and encourage economic growth at the local level.

Q U I C K S TAT S

No.

Fastest Growing City in the U.S. (U.S. Census Bureau)

4 5th 22 th

Largest Metropolitan Area in the United States Texas, Fastest Growing Economy in the U.S. (Forbes) Fortune 500 Companies Call DFW Home (USA Today)

10K

Home to over 10,000 corporate headquarters, making it the largest concentration in the U.S.

PROPERTY DESCRIPTION

D E M OG RA PHIC STAT I ST I CS

B R AZO S SH O P P ING C E NT E R

1 MILE

3 MILE

5 MILE

2023 Projection

3,730

15,010

18,319

2018 Estimate

3,724

14,949

18,140

2010 Census

3,882

15,818

19,459

Growth 2018-2023

0.16%

0.41%

0.99%

1,161

4,289

4,772

Population:

2018 Population Hispanic Origin

2018 Population by Race: White

3,355

13,612

16,564

Black

172

692

842

Am. Indian & Alaskan

183

215

Asian

142

163

Hawaiian & Pacific Island

Other

306

341

2023 Projection

1,407

5,541

6,679

2018 Estimate

1,405

5,532

6,651

2010 Census

1,469

5,808

6,969

Growth 2018 - 2023

0.14%

0.16%

0.42%

Owner Occupied

831

3,349

4,263

Renter Occupied

574

2,183

2,388

U.S. Armed Forces:

Households:

2018 Avg Household Income

$44,604

$49,255

$52,634

2018 Med Household Income

$35,518

$34,939

$37,587

<$25,000

487

1,867

2,045

$25,000 - $50,000

525

1,789

2,075

$50,000 - $75,000

162

800

1,046

$75,000 - $100,000

115

500

651

$100,000 - $125,000

269

417

$125,000 - $150,000

154

214

$150,000 - $200,000

$200,000+

112

2018 Households by Household Inc:

PROPERTY DESCRIPTION

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