DeSoto Retail Center - DeSoto, TX

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DESOTO RETAIL CENTER DESOTO, TX

PRICING & FINANCIAL ANALYSIS

DESOTO RETAIL CENTER

FINANCIAL ANALYSIS

DeSoto Retail Center 901 North Polk Street DeSoto, TX 75115

Offering Summary - Inline Space Price Cap Rate Net Operating Income Price PSF Occupancy

9.00% $607,188 $80 90.7%

PROPERTY DESCRIPTION

Year Built

$6,745,000

1985

Gross Leasable Area

± 83,894 SF

Lot Size

± 6.18 Acres

MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

2

PRICING & FINANCIAL ANALYSIS

DESOTO RETAIL CENTER

Current

PSF

Inline Space

$636,809

$7.59

Expenses

$636,809

$7.59

CAM Recoveries

$52,794

$0.63

Management Fee Recoveries

$10,636

$0.13

$13,541

$0.16

Real Estate Tax Recoveries

$104,176

$1.24

Total Expense Reimbursements

$181,146

$2.16

$817,955

$9.75

Base Rent - Occupied Space GROSS POTENTIAL RENT Expense Reimbursements

Insurance Recoveries

Operating Expenses

PSF

Real Estate Taxes

$114,634

$1.37

Insurance

$14,900

$0.18

Services - Portering

$5,600

$0.07

Services - Landscaping

$4,320

$0.05

Services - Pest Control

$0

$0.00

Services-Sweeping

$0

$0.00

Svcs - Waste Removal

$9,840

$0.12

R&M Bldg

$2,376

$0.03

$3,564

$0.04

CAM

$56,759

$0.68

R&M Electrical

$24,474

$0.29

R&M Misc.

$297

$0.00

Total Insurance

$14,900

$0.18

R&M Irrigation

$891

$0.01

Total Real Estate Taxes

$114,634

$1.37

R&M Painting

$0

$0.00

Total Recoverable Expenses

$210,767

$2.51

R&M Pkg Lot -Striping

$0

$0.00

Net Operating Income

$607,188

$7.24

R&M Pkg. Lot - Paving/Over

$0

$0.00

R&M Pressure Cleaning

$0

$0.00

Total CAM Management Fee

Capitalization Rate Capital Reserves at $0.15 PSF Cash Flow before Debt Service Market Loan Cash-on-Cash Return

9.00% $12,584

R&M Roof

$8,258

$0.10

$594,604

R&M Sign

$0

$0.00

$354,875

Supplies - Maintenance

$0

$0.00

$239,728

Electricity

$8,317

$0.10

Water & Sewer

$10,921

$0.13

Irrigation Water

$2,374

$0.03

Onsite Personnel

$0

$0.00

$56,759

$0.68

$24,474

$0.29

$210,767

$2.51

14.96%

Total CAM Management Fee (% of GPI)

TOTAL EXPENSES

3.00%

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

MARKET OVERVIEW

Cash Flow after Debt Service

3.00%

PROPERTY DESCRIPTION

EFFECTIVE GROSS REVENUE

Current

FINANCIAL ANALYSIS

Projected Income & Expenses

3

RENT ROLL

DESOTO RETAIL CENTER Minimum Rent

Recoveries

Total

Sq Ft

% of Sq Ft

Start

End

Annual

Monthly

PSF

Annual

PSF

Revenue

% of Revenue

Beall's

151

30,090

35.87%

08/85

01/25

$195,585

$16,299

$6.50

$64,725

$2.15

$260,310

31.82%

Desoto Food Mart

303

2,970

3.54%

05/17

04/22

$32,670

$2,723

$11.00

$7,533

$2.54

$40,203

4.92%

Available

309

2,000

2.38%

-

-

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

0.00%

Leslie's Poolmart

311

3,688

4.40%

12/99

11/19

$48,682

$4,057

$13.20

$9,515

$2.58

$58,196

7.11%

Rose Garden Antique Mall

320

5,200

6.20%

07/10

07/20

$36,504

$3,042

$7.02

$13,736

$2.64

$50,240

6.14%

Bulleez Specialty Eatz

330

1,040

1.24%

05/16

05/19

$8,840

$737

$8.50

$2,747

$2.64

$11,587

1.42%

House of God MercyMe Ministry

332

1,040

1.24%

03/15

03/21

$9,880

$823

$9.50

$2,638

$2.54

$12,518

1.53%

KG Designz

335

1,820

2.17%

01/12

01/23

$19,019

$1,585

$10.45

$4,808

$2.64

$23,827

2.91%

Desoto Children's Academy

340

10,250

12.22%

04/02

04/22

$112,750

$9,396

$11.00

$23,801

$2.32

$136,551

16.69%

Glam Pam's Upscale Resale

345

1,950

2.32%

07/15

07/18

$13,650

$1,138

$7.00

$4,946

$2.54

$18,596

2.27%

LaRay's Beauty Salon

347

1,225

1.46%

07/12

07/21

$14,700

$1,225

$12.00

$3,236

$2.64

$17,936

2.19%

MetroSpine Chiropractic

349

975

1.16%

03/94

07/21

$17,999

$1,500

$18.46

$2,817

$2.89

$20,815

2.54%

GNC

350

1,300

1.55%

02/99

MTM

$15,600

$1,300

$12.00

$3,297

$2.54

$18,897

2.31%

Jessica Delgado

365

4,157

4.96%

02/18

01/23

$27,021

$2,252

$6.50

$10,544

$2.54

$37,565

4.59%

370A

5,800

6.91%

-

-

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

0.00%

Fast Fist Martial Arts

380

2,560

3.05%

02/18

01/23

$17,920

$1,493

$7.00

$6,493

$2.54

$24,413

2.98%

Beauty Town

390

3,729

4.44%

10/02

09/23

$37,290

$3,108

$10.00

$9,910

$2.66

$47,200

5.77%

370B

4,100

4.89%

04/18

04/23

$28,700

$2,392

$7.00

$10,399

$2.54

$39,099

4.78%

Total Count/GLA

18

83,894

100%

$817,955

100.00%

Occupied

16

76,094

90.7%

Available

2

7,800

9.3%

8.37

76,094

100.0%

Available

J.C Fitness

Total Avg Rent

$636,809

$181,146

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2017 STRIVE

MARKET OVERVIEW

Suite

PROPERTY DESCRIPTION

Tenant

FINANCIAL ANALYSIS

Lease Dates

4

ESTIMATED RENT REIMBURSEMENT

DESOTO RETAIL CENTER Management Fee

Insurance

Real Estate Taxes

Total Recovery

% of Sq Ft

Monthly

PSF

Monthly

PSF

Monthly

PSF

Monthly

PSF

Monthly

PSF

30,090

35.87%

$1,522

$0.61

$0

$0.00

$445

$0.18

$3,426

$1.37

$5,394

$2.15

Desoto Food Mart

2,970

3.54%

$173

$0.70

$72

$0.29

$44

$0.18

$338

$1.37

$628

$2.54

309

Available

2,000

2.38%

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

311

Leslie's Poolmart

3,688

4.40%

$229

$0.74

$90

$0.29

$55

$0.18

$420

$1.37

$793

$2.58

320

Rose Garden Antique Mall

5,200

6.20%

$349

$0.81

$126

$0.29

$77

$0.18

$592

$1.37

$1,145

$2.64

330

Bulleez Specialty Eatz

1,040

1.24%

$70

$0.81

$25

$0.29

$15

$0.18

$118

$1.37

$229

$2.64

332

House of God MercyMe Ministry

1,040

1.24%

$61

$0.70

$25

$0.29

$15

$0.18

$118

$1.37

$220

$2.54

335

KG Designz

1,820

2.17%

$122

$0.81

$44

$0.29

$27

$0.18

$207

$1.37

$401

$2.64

340

Desoto Children's Academy

10,250

12.22%

$665

$0.78

$0

$0.00

$152

$0.18

$1,167

$1.37

$1,983

$2.32

345

Glam Pam's Upscale Resale

1,950

2.32%

$114

$0.70

$47

$0.29

$29

$0.18

$222

$1.37

$412

$2.54

347

LaRay's Beauty Salon

1,225

1.46%

$82

$0.81

$30

$0.29

$18

$0.18

$139

$1.37

$270

$2.64

349

Steve Hanus D.C.

975

1.16%

$63

$0.78

$27

$0.34

$17

$0.20

$128

$1.57

$235

$2.89

350

GNC

1,300

1.55%

$76

$0.70

$32

$0.29

$19

$0.18

$148

$1.37

$275

$2.54

365

Jessica Delgado

4,157

4.96%

$243

$0.70

$101

$0.29

$62

$0.18

$473

$1.37

$879

$2.54

370A

Available

5,800

6.91%

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

$0

$0.00

370B

J.C Fitness

4,100

4.89%

$239

$0.70

$100

$0.29

$61

$0.18

$467

$1.37

$867

$2.54

380

Fast Fist Martial Arts

2,560

3.05%

$149

$0.70

$62

$0.29

$38

$0.18

$292

$1.37

$541

$2.54

390

Beauty Town

3,729

4.44%

$242

$0.78

$104

$0.34

$55

$0.18

$425

$1.37

$826

$2.66

83,894

100%

$4,399

Tenant

151

Bealls

303

Totals

$886

$1,128

$8,681

PROPERTY DESCRIPTION

Sq Ft

Suite

FINANCIAL ANALYSIS

CAM

$15,096

MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

5

LEASE PROVISIONS

DESOTO RETAIL CENTER

Tenant Bealls

Suite

Sq Ft

Date

Renewal Options

FINANCIAL ANALYSIS

Base Rental Increases

User Restrictions & Exclusive uses

PSF Tenant pays % rent of 3% above Natural Breakpoint (sum equal to 3% of the ""net retail sales"" derived from the Lease premises for such lease year less the amount of minimum rent paid by Tenant to LL for such full or partial lease year.)

30,090

Desoto Food Mart

303

2,970

Available

309

2,000

Leslie's Poolmart

311

3,688

Rose Garden Antique Mall

320

5,200

08/18

$7.37

Bulleez Specialty Eatz

330

1,040

05/18

$9.00

House of God MercyMe Ministry

332

1,040

KG Designz

335

1,820

5/18 5/19

$11.50 $13.00

Two, 5-yr renewal option @ Market Rate

One, 5-yr renewal option @ $14.52 psf/yr

Exclusive right to operate a store whose principal business is the sale of pool supplies

PROPERTY DESCRIPTION

151

One, 3-yr renewal option, @ Yr 1: $9.50 psf/yr; Yr 2: $10.00 psf/yr; Yr 3: $10.50 psf/yr

Exclusive right to operate a hair salon

MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2017 STRIVE

6

LEASE PROVISIONS

DESOTO RETAIL CENTER

340

10,250

Glam Pam's Upscale Resale

345

1,950

LaRay's Beauty Salon

347

1,225

Steve Hanus D.C.

349

975

Exclusive right to operate a chiropractic clinic

GNC

350

1,300

Exclusive right to operate store whose principal business is the sale of vitams and supplements

J.C Fitness

$12.00 $12.50 $12.50

One, 3-yr renewal option, @ Yr 1: $10.50 psf/yr; Yr 2: $11.00 psf/yr; Yr 3: $12.00 psf/yr

2/18 2/19 2/20 2/21 2/22

$6.50 $7.00 $7.50 $8.00 $8.50

Two, 5-yr renewal options

4,100

4/18 5/19 5/20 5/21 5/22

$7.00 $7.75 $8.75 $8.75 $10.00

Two, 5-yr renewal options @ MKT but no more than 110% than the previous rate and 103% for the 2nd option

2/18 2/19 2/20 2/21 2/22

$7.00 $7.50 $8.00 $8.50 $9.00

Two, 5-yr renewal options

365

4,157

370A

5,800

370B

8/18 8/19 8/20

5% Cap on CAM

380

2,560

Beauty Town

390

3,729

Pays % rent of 4% of gross sales over $932,250

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2017 STRIVE

MARKET OVERVIEW

Fast Fist Martial Arts

PROPERTY DESCRIPTION

Available

$11.66

User Restrictions & Exclusive uses

Desoto Children's Academy

Jessica Delgado

07/20

Renewal Options

FINANCIAL ANALYSIS

Base Rental Increases

7

TENANT INFORMATION

DESOTO RETAIL CENTER

Company DBA Ownership Ticker Symbol A department store offering moderately priced, nationally recognized brand name and private label apparel, accessories, cosmetics and footwear for the entire family.

Exchange Market Cap Sales Volume Number of Locations Years In Business Website

Stage Stores, Inc. Bealls Stores Public SSI NYSE 60.09 Million 190,511 850+ 29 Years Houston, TX

PROPERTY DESCRIPTION

Headquarters

FINANCIAL ANALYSIS

Tenant Summary

www.stagestoresinc.com

Tenant Summary Company

Leslie’s Poolmart, Inc.

DBA

Leslie’s Pool Supplies

Ownership Rating Agency Number of Locations Years In Business Headquarters Website

B Standard & Poor’s 850+

MARKET OVERVIEW

Leslie’s Pool Supplies offers a comprehensive product line including chemicals, cleaning devices, equipment, parts, recreational and safety products; backyard and patio accessories; professional on-site equipment installation and repair services in most areas.

Private

54 Years Phoenix, AZ www.lesliespool.com

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

8

TENANT INFORMATION

DESOTO RETAIL CENTER

FINANCIAL ANALYSIS

Tenant Summary Company DBA Ownership Rating Agency Number of Locations Years In Business Headquarters Website

GNC Public BBStandard & Poor’s 9,000+

PROPERTY DESCRIPTION

GNC is a leading global specialty retailer of health and wellness products including vitamins, minerals, and herbal supplement products, sports nutrition products and diet products.

General Nutrition Corporation

82 Years Pittsburg, PA www.gnc.com

MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

9

INVESTMENT HIGHLIGHTS

DESOTO RETAIL CENTER

FINANCIAL ANALYSIS

• Bealls Recently Renewed: Bealls recently completed an extensive renovation to their space and extended their lease through 2025, which shows that they are committed long term to this location.

• Well-Below Replacement Cost: The Property is priced at only $80 per square foot, which gives an investor an opportunity to acquire DeSoto Retail Center for well below replacement cost.

PROPERTY DESCRIPTION

• Value-Add Opportunity: At 90.7% occupancy, an investor can realize immediate value through the lease up of more than 7,800 square feet of retail and restaurant space.

• High Tenant Retention: The Property’s anchor, Bealls, has been at the location since its construction in 1985.

Additionally, the Property overall has seen high tenant retention as 57% of the current tenants have been at DeSoto Retail Center for more than 10 years.

MARKET OVERVIEW

• High Population Densities & Future Growth: There are 66,939 residents within a three mile radius of DeSoto Retail Center increasing to 186,945 residents within five miles. The population within three miles of the Property has increased by 12.83% since 2010 and is projected to increase an additional 6.42% over the next five years.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

10

SITE PLAN

151

Bealls

303

Desoto Food Mart

309

Available

311

Leslie's Poolmart

320

Rose Garden Antique Mall

330

Bulleez Specialty Eatz

332

House of God MercyMe Ministry

335

KG Designz

340

Desoto Children's Academy

345

Glam Pam's Upscale Resale

347

LaRay's Beauty Salon

349

Steve Hanus D.C.

350

GNC

365

Jessica Delgado

370A

Available

370B

J.C. Fitness

380

Fast Fist Martial Arts

390

Beauty Town

PROPERTY DESCRIPTION

Tenant

FINANCIAL ANALYSIS

Suite

DESOTO RETAIL CENTER

MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2017 STRIVE

11

AERIAL MAP

DESOTO RETAIL CENTER

FINANCIAL ANALYSIS

N

PO

LK

ST

PROPERTY DESCRIPTION MARKET OVERVIEW

EP

LEA SA N

TR

UN

RD

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

12

AERIAL MAP

DESOTO RETAIL CENTER

FINANCIAL ANALYSIS

EP

LE

AS AN

TR

UN

RD

PROPERTY DESCRIPTION

N POLK ST

MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

13

REGIONAL MAP

DESOTO RETAIL CENTER

FINANCIAL ANALYSIS PROPERTY DESCRIPTION MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

14

LEASE COMPARABLES

DeSoto Retail Center  901 N. Polk Street DeSoto, TX

GLA

Yr Built/ Renovated Occupancy

Major Tenants

Available SF

Rental Rates

NNN

90.7%

Bealls Stores, KG Designz GNC, Leslie's Pool Supply, DeSoto Children's Academy

7,800

$6.00 - $16.00

$3.32

The Crossing 1 1001 N. Interstate-35 E

195,534

1981 / 1999

97.9%

Kroger, Ross, Office Depot, Advance America, Sally Beauty, Payless Shoes, Rainbow, AT&T, Family Dentistry

4,146

$14.00 - $19.00

$4.20

Pleasant Run Courtyard 2 3520 W. Pleasant Run Road

164,114

1982

97.5%

Cinemark, Aaron's, CiCi's Pizza, Subway, Metro PCS, Ace Cash Express

4,146

$14.00-$16.00

$3.60

Pleasant Run Shopping Center 3 1100 E. Pleasant Run Road

33,343

2007

86.0%

Mint Dentistry, Dixieland Day Care, B&B Tax Service, Golden Chick, Evan's Pit Barbeque

4,670

$10.00 - $18.00

$3.30

DeSoto Shopping Center 4 210 E. Pleasant Run Road

69,090

1996

100.0%

Tom Thumb, Papa Murphy's, Luxury Nails, Blue Ribbon Cleaners

0

$8.00 - $22.00

$4.71

Hampton Square 5 719 N. Hampton Road

89,380

1975

97.8%

Big Lots, Family Dollar, Locke Supply Co., CitiTrends

2,000

$10.00 - $13.00

$3.50

15,000

2008

100.0%

Wataburger, WingStop, Raw Cuts, Nail Salon, Tuscany Bistro

0

$18.00 - $22.00

$6.00

6

DeSoto Town Center 209 E Pleasant Run Road

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

MARKET OVERVIEW

1985

PROPERTY DESCRIPTION

83,894

FINANCIAL ANALYSIS

Property

DESOTO RETAIL CENTER

15

LEASE COMPARABLES

DESOTO RETAIL CENTER

FINANCIAL ANALYSIS

DeSoto Retail Center 1

The Crossing

2

Pleasant Run Courtyard

3

Pleasant Run Shopping Center

4

DeSoto Shopping Center

5

Hampton Square

6

DeSoto Town Center

6

2

3

PROPERTY DESCRIPTION

5

4

1

MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

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MARKET SUMMARY

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FINANCIAL ANALYSIS PROPERTY DESCRIPTION

DALLAS, TX 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.

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.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

MARKET OVERVIEW

The city is the largest economic center of the 12-county Dallas–Fort Worth–Arlington metropolitan area, which had a population of 6,810,913 people as of July 1, 2013. The metropolitan economy is the sixth largest in the United States, with a 2012 real GDP of $420.34 billion. In 2013 the metropolitan area led the nation with the largest year-over-year increase in employment, and advanced to become 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 2013, 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 12 Fortune 500 companies, and the DFW region as a whole has 20.

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DEMOGRAPHIC STATISTICS

1 Mile

3 Mile

5 Mile

11,449 10,908 10,522 4.96% 3.67% 1,345

71,236 66,939 59,326 6.42% 12.83% 11,672

198,918 186,945 166,567 6.40% 12.23% 38,116

2,645 7,954 71 71 3 165 0

18,600 46,386 382 544 29 997 29

58,155 122,837 1,274 1,649 141 2,889 83

4,514 4,300 4,153 4.98% 3.54% 2,634 1,666 $66,806 $52,220

25,146 23,660 21,161 6.28% 11.81% 14,136 9,253 $65,645 $50,755

69,766 65,642 58,960 6.28% 11.33% 39,922 25,720 $64,649 $51,444

1,001 1,084 660 715 408 187 138 108

5,318 6,398 3,982 3,484 2,137 829 1,004 508

14,434 17,618 12,704 8,850 5,679 2,686 2,407 1,264

FINANCIAL ANALYSIS

Radius

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Population: 2022 Projection 2017 Estimate 2010 Census Growth 2017-2022 Growth 2010-2017 2017 Population Hispanic Origin

2017 Population by Race:

Households:

2022 Projection 2017 Estimate 2010 Census Growth 2017 - 2022 Growth 2010 - 2017 Owner Occupied Renter Occupied 2017 Avg Household Income 2017 Med Household Income

2017 Households by Household Inc:

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2017 STRIVE

MARKET OVERVIEW

<$25,000 $25,000 - $50,000 $50,000 - $75,000 $75,000 - $100,000 $100,000 - $125,000 $125,000 - $150,000 $150,000 - $200,000 $200,000+

PROPERTY DESCRIPTION

White Black Am. Indian & Alaskan Asian Hawaiian & Pacific Island Other U.S. Armed Forces

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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 JENNIFER PIERSON | JPIERSON@STRIVERE.COM 214.354.6820