FA I R M E A D O W S S H O P P I N G C E N T E R 334-707 East Camp Wisdom Road D u n c a n v i l l e , Te x a s 7 5 11 6
:: offering memorandum
Capital Markets | Investment Properties
TA B L E O F C O N T E N T S 1 Executive Summary....................................3 Investment Profile Investment Overview Highlights & Features
2
Market and Asset Overview....................8 Property Summary Select Tenant Summaries Location Map Aerials Site Plan Rent Comparables Demographics Market Summary
3
Financials....................................................21 Rent Roll Estimated Reimbursement Revenue Tenant Notes Income & Expense Analysis Expiration Schedule
EXECUTIVE SUMMARY
FAIRMEADOWS SHOPPING CENTER
INVESTMENT PROFILE PRICE:
$7,500,000
PRICE PSF:
$66
NOI:
$521,735
CAP RATE:
6.96%
OCCUPANCY:
55.43%
GLA:
± 113,861 square feet
LAND AREA:
± 11.57 acres
YEAR BUILT:
1963, 1969, 1973
EXISTING DEBT:
Free and Clear
4
FAIRMEADOWS SHOPPING CENTER
Tenant
SF
% of Center
Expiration
Advanced Auto Parts
6,889
6.05%
Jan-31
99 Cent Only Stores
18,728
16.45%
Jan-26
Popeyes
1,700
1.49%
Apr-24
Firestone
5,740
5.90%
Jun-23
A-Max Auto Insurance
664
0.58%
Jul-19
INVESTMENT OVERVIEW Pierson Retail Advisors is pleased to offer Fairmeadows Shopping Center (“Property”) a ± 113,861 square foot retail center located at the southwest corner of Camp Wisdom Road and Oriole Boulevard in Duncanville, Texas. Situated just south of Interstate 20, the Property is currently 55.4% occupied by a diverse mix of national, regional, and local tenants including 99 Cents Only Stores, Advance Auto Parts, Firestone, Popeye’s, and A-Max Insurance, among others. Fairmeadows Shopping Center provides an investor the opportunity to acquire a well-positioned value-add shopping center within a dense, established trade area.
5
FAIRMEADOWS SHOPPING CENTER
HIGHLIGHTS & FEATURES Sought After Value-Add Opportunity: Fairmeadows Shopping Center is currently 55.4% occupied providing investors the opportunity to see substantial NOI growth through the lease-up of the remaining vacancies totaling over 50,000 square feet as well as increasing below market rents as leases expire. Furthermore, 64.1% of the existing tenants have base rent escalations structured into their leases virtually guaranteeing an increase to the NOI over the next several years. Tiered Disposition Potential: There are several outparcel buildings which could be sold off separately in a strategy to reduce an investor’s basis. Priced Well-Below Replacement Cost: At only $66 per square foot, the Property is being offered at a price well-below replacement cost. Complementary Tenant Line-up: The Property has a complementary collection of tenants which serve the daily needs of the surrounding trade area. Anchored by 99 Cents Only Stores, the Property combines specialty retail, restaurants, and service tenants all generating steady traffic while promoting cross shopping with the remaining tenants in the Property. Area Traffic Generators: The Property is situated at a signalized intersection just south of Interstate 20. Nearby retailers that drive consumer traffic include Kroger, Terry’s Supermarket, Family Dollar, Harbor Freight Tools, Jack in the Box, Quicktrip, Wendy’s, and Bank of America, among others. Ample Access: The Property is strategically positioned at the southwest corner of the signalized intersection of Camp Wisdom Road and Oriole Boulevard. The Property benefits from a total of ten points of ingress/egress with convenient cross-access throughout.
6
FAIRMEADOWS SHOPPING CENTER
HIGHLIGHTS & FEATURES (CONT’D) High Traffic Counts: Fairmeadows benefits from its location on Camp Wisdom Road, a major connector in this portion of Dallas County. Camp Wisdom Road carries nearly 24,000 vehicles per day. Furthermore, Interstate 20 is a major highway system stretching from West Texas to South Carolina, has more than 161,800 travelers per day in Duncanville. Solid Demographics: Fairmeadows benefits from its location within a densely populated, established trade area with future growth potential. Within a three mile radius of the Property there are 84,581 people increasing to 221,632 people within five miles. Since 2010, the area within five miles around the Property has seen more than 6% growth on average and is expected to grow by nearly 7% over the next five years on average within one, three and five miles. Furthermore, the average household incomes for the population bases within three and five miles is $56,371 and $58,593 respectively. Duncanville: Centrally located in the Dallas/Fort Worth Metroplex, Duncanville is less 15 minutes from Dallas CBD and 30 minutes from Fort Worth. The City of Duncanville provides easy access to the Metroplex via several major thoroughfares including Interstate 20, Interstate 35, and Highway 67. These highway systems carry significant consumer traffic connecting the Property to many surrounding areas including DeSoto, Dallas, and Grand Prairie.
7
FAIRMEADOWS SHOPPING CENTER
MARKET & ASSET OVERVIEW
FAIRMEADOWS SHOPPING CENTER
PROPERTY SUMMARY
ADDRESS:
334-707 E. Camp Wisdom Rd. 727 Oriole Blvd. Duncanville, Texas 75116 Dallas County
SIGNAGE:
One pylon sign along Camp Wisdom Road, plus five individual tenant pole signs on Camp Wisdom Rd. and Oriole Blvd.
LEGAL DESCRIPTION:
Fairmeadows Village Blk P Pt, Lots 2R, 3, 4, 5, 6
INGRESS / EGRESS:
Ten points of ingress/egress surrounding the Property as well as cross-access throughout
BUILDING AREA:
± 113,861 square feet
STRUCTURE:
Concrete tilt-wall with brick and concrete veneer
LAND AREA:
Lot 2R: ± 9.852 acres Lot 5: ± 0.656 acres (Adv. Auto) Lot 3: ± 0.359 acres Lot 6: ± 0.503 acres (Firestone) Lot 4: ± 0.205 acres Total: ± 11.57 acres or ± 499,633 square feet
AGE OF ROOF:
Unknown
CONFIGURATION:
Seven, single story buildings
ROOF COMMENTS:
TPO Roofing System
YEAR BUILT:
1963, 1969, 1973
HVAC:
Individual roof mounted HVAC units
PARKING:
± 561 surface spaces (source 2008 Survey)
PARKING RATIO:
± 4.93 per 1,000 sf
TRAFFIC COUNTS:
Camp Wisdom Rd. ± 23,892 vpd Interstate 20 ± 161,899 vpd (source CoStar)
9
FAIRMEADOWS SHOPPING CENTER
SELECT TENANT SUMMARIES
10
FAIRMEADOWS SHOPPING CENTER
Entity on Lease DBA Locations Website Ownership Credit Rating Annual Revenue Public/ Private Line of Business
99 Cents Only Stores Texas, Inc. 99 Cents Only Stores 392 stores in California, Texas, Arizona, & Nevada www.99only.com Corporate CCC+ (S&P) $2 Billion (2016) Private 99 Cents Only Store is a premier deep-discount retailer primarly carrying name-brand consumable and general merchandise as well as seasonal products.
Entity on Lease DBA Locations Website Ownership Credit Rating Annual Revenue Public/ Private Line of Business
Bridgestone/Firestone, Inc. (formerly The Firestone Tire & Rubber Company) Firestone Complete Autocare More than 1,600 locations nationwide www.firestone.com Corporate A (S&P) 26.08 Billion (2015) (Bridgestone Corporation) Public (Ticker Symbol: BRDCY) Firestone Complete Autocare provides high quality maintenance, repairs and tires for automobiles. Also backs services and repairs with a nationwide warranty that 's good at any of Firestone's locations nationwide.
Entity on Lease DBA Locations Website Ownership Credit Rating Annual Revenue Public/ Private Line of Business
Rahum Inc. Popeyes Chicken & Biscuits Operates and franchises over 2,000 Popeyes restaurants worldwide www.popeyes.com Franchisee Not rated $259 Million (2015) Private Founded in New Orleans in 1972, Popeyes is the world's second largest quick-service chicken concept (based on the number of units). Popeyes distinguishes itself with a unique "New Orleans" style menu that features spicy chicken, chicken tenders, fried shrimp and other seafood, as well as jambalaya, Red Beans and Rice and other regional items.
SELECT TENANT SUMMARIES
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FAIRMEADOWS SHOPPING CENTER
Entity on Lease DBA Locations Website Ownership Credit Rating Annual Revenue Public/ Private Line of Business
Straus-Frank Enterprises, LLC Advance Auto Parts Over 5,200 stores in the US, Puerto Rico, U.S. Virgin Islands, & Canada www.advanceautoparts.com Corporate BBB- (S&P) $9.74 Billion (2015) Public (Ticker Symbol AAP) Advance Auto Parts the largest automotive aftermarket parts provider in North America, serves both the professional installer and do-it-yourself customers.
Entity on Lease DBA Locations Website Ownership Credit Rating Annual Revenue Public/ Private Line of Business
A-Max Insurance Services, Inc. A-Max Auto Insurance More than 90 locations in 15 Texas cities www.amaxinsurance.com Corporate Not rated N/A Private A-MAX Auto Insurance is an industry leader that specializes in providing low cost insurance to thousands of Texas residents and businesses.
LOCATION MAP
Fairmeadows Shopping Center
12
FAIRMEADOWS SHOPPING CENTER
Orio
le B
oule vard
AERIAL
E Camp Wisdom Road
13
FAIRMEADOWS SHOPPING CENTER
AERIAL
Southwest Center Mall
oad
E C a m p Wisdom R
Terry’s Supermarket
14
FAIRMEADOWS SHOPPING CENTER
SITE PLAN
315B
32
6
651
315
328
663 707 705
312
306
330 334
408A 408 406
336A
727
402
336B
422 414
Tenant
Suite
Size
Firestone Tire
210
5,790
The Coaches Box
Risen Christ Family
326
4,404
Advance Auto Parts Looks of Beauty Popeye’s La Familia Agency
15
Tenant
Suite
Size
Tenant
Suite
Size
703/705
1,513
Helping Hands
330
2,250
Korner Shop
727
2,400
Herbalife
334
807
332
6,889
Available
402
7,085
Tax & Accounting
336B
750
336A
1,152
Forever Diva Stylist
707
958
Available
408
2,049
338
1,700
Available
315
4,200
Available
651
9,000
408A
1,673
Mint Dentist
406
3,020
99 Cents Only Store
410
18,728
Available
306
7,266
A-Max Insurance Service
414
664
Available
312
14,649
Wellshire Financial
422
1,385
Available
315B
6,499
Illana’s Salon & Spa Academy
663
5,062
Helping Hands
328
3,968
FAIRMEADOWS SHOPPING CENTER
RENT COMPARABLES Property Fairmeadows Shopping Center 334-707 E. Camp Wisdom Rd. 727 Oriole Blvd. Duncanville, TX
113,861
Yr Built/ Renovated Occupancy 1963, 1969, 1973
55.4%
Major Tenants 99 Cents Only, Firestone, Popeyes, Advanced Auto, A-Max Insurance
Available SF
Rental Rates
NNN
$5.76 - $17.00 50,748
(inline)
$15.00 -$31.68*
$1.64
(outparcels)
1
Westgate Plaza 102 W Camp Wisdom Rd.
27,278
1970
90.3%
Kroger (shadow), Jefferson Dental, Boost Mobile, Judy's Café, First Cash Pawn
2,652
$10.00 - $12.00
$4.40
2
Liberty Square 211-215 W Camp Wisdom Rd.
54,440
1985
90.5%
Little Caesars, Great Clips, Fitness Now, Spicy Nails
5,150
$7.99 - $13.00
$3.38
3
Oriole Square 307 E Camp Wisdom Rd.
96,472
1982
95.2%
Terry's Supermarket, Agua Dental, Max Outlet, Baja Insurance
4,622
$12.00
$5.65
4
Red Bird Village 4343 W Camp Wisdom Rd.
84,327
2007
93.8%
Falles Parades, Dollar Tree, Taco Bell, Long John Silver, Kings Beauty Supply
5,241
$7.00-$20.00
$4.50
5
American Way Plaza 7010 American Way
16,471
1987
84.2%
Tax Tyme Express, Salon VIP Tress, All About You Events
2,606
$4.00 - $11.04
$2.99
84.2%
Macy's, Sears, Foot Locker, Burlington Coat Factory, GNC
186,969
$10.00 - $40.00
$7.41
Southwest Center Mall 6 3662 W. Camp Wisdom Rd Dallas, Texas *represents single tenant building
16
GLA
FAIRMEADOWS SHOPPING CENTER
1,185,022 1975 / 2002
RENT COMPARABLES
Fairmeadows Shopping Center 1
Westgate Plaza
2
Liberty Square
3
Oriole Square
4
Redbird Village
5
American Way Plaza
6
Southwest Center Mall
2
3
4
5
1 6
Copyrighted report licensed to Pierson Retail Advisors - 322944.
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FAIRMEADOWS SHOPPING CENTER
DEMOGRAPHICS Radius
1 Mile
3 Mile
5 Mile
17,572 16,477 15,614 6.65% 5.53% 7,890
90,769 84,581 77,770 7.32% 8.76% 25,612
236,295 222,632 210,293 6.62% 5.39% 82,788
11,166 4559 238 277 19 218 0
40,279 40,469 775 1,713 84 1,262 13
109,108 102,968 2,118 4,058 189 3,191 163
5,928 5,566 5,320 6.50% 4.62% 2,980 2,586 $55,165 $43,835
32,739 30,566 28,417 7.11% 7.56% 14,640 15,926 $56,371 $43,009
79,450 74,568 71,075 6.55% 4.91% 41,727 32,841 $58,593 $44,214
1,217 1,970 1,215 609 316 123 19 98
7,570 9,848 5,892 3,053 2,133 1,019 598 453
18,754 22,673 13,406 8,389 5,540 2,508 2,058 1,242
Population: 2021 Projection 2016 Estimate 2010 Census Growth 2016-2021 Growth 2010-2016 2016 Population Hispanic Origin
2016 Population by Race: White Black Am. Indian & Alaskan Asian Hawaiian & Pacific Island Other U.S. Armed Forces
Households: 2021 Projection 2016 Estimate 2010 Census Growth 2016 - 2021 Growth 2010 - 2016 Owner Occupied Renter Occupied 2016 Avg Household Income 2016 Med Household Income
2016 Households by Household Inc: <$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+
18
FAIRMEADOWS SHOPPING CENTER
MARKET SUMMARY - DALLAS/FORT WORTH MARKET OVERVIEW Based on its performance (and their expected performance) in three primary areas: investment, development, and home building, Dallas-Fort Worth ranked #1 in Urban Land Institute’s top U.S. real estate markets to watch in 2016. The Dallas/Fort Worth Metroplex, a North Texas region, is comprised of 12 counties and over 150 municipalities, including Dallas and Fort Worth. The fourth largest metropolitan area in the United States, the DFW Metroplex encompasses approximately 9,286 square miles with a population of more than 6.9 million people. Dallas-Fort Worth was one of the fastest growing metropolitan areas in the nation from 2000 to 2015, adding more than 1.8 million people for a 35% growth rate. Currently the Metroplex adds a new person every 4 minutes and it is projected by the year 2040 as many as 10.5 million people will be living in DFW and employment will reach more than 6.6 million people. With the largest, most educated workforce in the state of Texas, totaling three million people, DFW leads the state in public university and community college students (442,000). The largest of the major universities within the area are the University of North Texas (37,175), the University of Texas at Arlington (34,870) and the University of Texas at Dallas (24,554). In 2014, Brooking Institute ranked Dallas/Fort Worth #3 in the nation for the metropolitan area’s “Overall Economic Performance” due to its impressive job growth, low unemployment, high gross domestic product and healthy home prices through the recession and recovery. Furthermore, Dallas/Fort Worth accounts for one-third of the state’s Gross Domestic Product and approaches $60 billion in annual direct imports and exports. The Metroplex is currently the fifth-largest global exporter in the country and largest regional exporter to Canada, Mexico and China. The area has benefited from a sustained period of economic and population expansion over the past decade as local companies increase their business capacity and others relocate to this desirable, central U.S. location
JOB GROWTH: CONTINUES TO RISE Dallas/Fort Worth continues to outpace the nation in job growth over the short and long term due to its central location, pro-business environment and strong economy. Between 2005 and 2015 DFW added 621,278 new jobs for an impressive 22% growth rate, making DFW among the leading metros in the nation. Furthermore, Careerbuilder.com ranked Dallas/Fort Worth first among the nation’s ten largest MSA’s for job growth between 2014 and 2015 adding 112,829 jobs for a 3.4% growth
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FAIRMEADOWS SHOPPING CENTER
rate, well above the national rate of 2%. As of December 2015, the Dallas/Fort Worth had an unemployment rate of 4.0% below the national rate of 5.0%.
DALLAS/FORT WORTH: A DESIRABLE CORPORATE LOCATION Nationally recognized as one of the best markets for business, Dallas/Fort Worth leads the state in the number of firms who made their way into the region in 2014. Since 2010, DFW has had 106 companies expand or relocate to the Metroplex, occupying nearly 12.5 million square feet. In 2014 alone, nearly 50 companies expanded or relocated to DFW. This number will continue to increase as the Dallas Regional Chamber announced plans to spend $2.5 million a year for the next five years on corporate recruiting. Over the last few years, the most notable announcements of companies moving to DFW include: Toyota North American headquarters, Amazon distribution center, Humana, Motorola, USAA, Omnitracs headquarters, Active Network, and Associa Inc. Dallas/Fort Worth has the fourthhighest number of corporate headquarters in the country hosting 21 Fortune 500 companies. Additionally, DFW is home to five Global 500 company headquarters, 40 Fortune 1000 headquarters and 11 of Forbes Top Private Companies.
ADVANTAGES IN TRANSPORTATION AND INFRASTRUCTURE Centrally located and easily accessible, Dallas/Fort Worth has an exceptional infrastructure of highways, interstates, railways, airports as well as public transportation systems. These infrastructures coupled with the DFW International Airport draw businesses and corporations affording them a competitive advantage nationally and internationally. Dallas/Fort Worth International Airport is the third-busiest airport in overall operations and the ninth-busiest airport in the world in annual passenger counts hosting over 64.1 million travelers in 2015. The DFW International Airport has a $37 billion annual economic impact for the DFW region while supporting more than 228,000 jobs. Dallas is also home to Dallas Love Field, serving both commercial and corporate users transporting more than 8.5 million passengers annually. Serving as the corporate headquarters for Southwest Airlines, Dallas Love Field is a premier close-in airport as itâ&#x20AC;&#x2122;s located in the heart of Dallas just seven miles northwest of downtown central business district. Dallas also has an extensive modern public transit service called Dallas Area Rapid Transit (DART) which covers 700 square miles in Dallas and 12 surrounding suburban communities, serving more than 111.8 million passengers 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. In terms of infrastructure, DFW is served by six interstates, seven U.S. highways and numerous state highways.
20
FAIRMEADOWS SHOPPING CENTER
FINANCIALS
FAIRMEADOWS SHOPPING CENTER
RENT ROLL Tenant
Suite
[2] Firestone Tire
210
GLA 5,790
%
Lease Dates Start End
5.09%
07/73
06/23
Annual
Minimum Rent Monthly
$75,264
$6,272
PSF $13.00
Recoveries Annual PSF $0
$0.00
Total Revenue $75,264
10.18%
Risen Christ Family
326
4,404
3.87%
12/96
01/18
$38,535
$3,211
$8.75
$7,219
$1.64
$45,754
6.19%
Advance Auto Parts
332
6,889
6.05%
07/15
01/31
$103,335
$8,611
$15.00
$4,145
$0.60
$107,480
14.54%
336A
1,152
1.01%
11/11
01/19
$13,985
$1,165
$12.14
$0
$0.00
$13,985
1.89%
[2] Looks of Beauty Popeyes La Familia Agency, 99 Cents Only Stores
338
1,700
1.49%
10/05
04/24
$28,900
$2,408
$17.00
$2,787
$1.64
$31,687
4.29%
408A
1,673
1.47%
06/14
06/17
$21,749
$1,812
$13.00
$2,742
$1.64
$24,491
3.31%
410
18,728
16.45%
12/13
01/26
$107,686
$8,974
$5.75
$29,165
$1.56
$136,851
18.51%
A-Max Insurance Service
414
664
0.58%
05/09
07/19
$21,012
$1,751
$31.64
$1,088
$1.64
$22,100
2.99%
Wellshire Financial
422
1,385
1.22%
12/09
07/20
$37,800
$3,150
$27.29
$2,270
$1.64
$40,070
5.42%
Illana's Salon & Spa Academy The Coaches Box [4] Korner Shop
663
5,062
4.45%
12/14
12/19
$40,496
$3,375
$8.00
$8,298
$1.64
$48,794
6.60%
703/705
1,513
1.33%
11/13
07/22
$16,643
$1,387
$11.00
$2,480
$1.64
$19,123
2.59%
727
2,400
2.11%
08/12
02/22
$30,000
$2,500
$12.50
$3,934
$1.64
$33,934
4.59%
Available
402
7,085
6.22%
-
-
Forever Diva Stylist
707
958
0.84%
08/16
08/18
Available
315
4,200
3.69%
-
-
$0
$0
$0.00
$0
$0.00
$0
0.00%
$10,059
$838
$10.50
$1,806
$1.89
$11,865
1.60%
$0
$0
$0.00
$0
$0.00
$0
0.00%
$34,730
$2,894
$11.50
$5,395
$1.79
$40,125
5.43%
$0
$0
$0.00
$0
$0.00
$0
0.00%
Mint Dentist
406
3,020
2.65%
11/16
10/26
Available
306
7,266
6.38%
-
-
Available
312
14,649
12.87%
-
-
$0
$0
$0.00
$0
$0.00
$0
0.00%
Available
315B
6,499
5.71%
-
-
$0
$0
$0.00
$0
$0.00
$0
0.00%
[3] Helping Hands
328
3,968
3.48%
03/17
02/22
$35,712
$2,976
$9.00
$7,089
$1.79
$42,801
5.79%
[3] Helping Hands
330
2,250
1.98%
03/17
02/22
$20,250
$1,688
$9.00
$4,020
$1.79
$24,270
3.28%
334
807
0.71%
10/16
10/19
$8,958
$746
$11.10
$1,442
$1.79
$10,399
1.41%
336B
750
0.66%
02/17
01/18
$9,000
$750
$12.00
$1,340
$1.79
$10,340
1.40%
Herbalife Tax & Accounting Consulting Available
408
2,049
1.80%
-
-
$0
$0
$0.00
$0
$0.00
$0
0.00%
Available
651
9,000
7.90%
-
-
$0
$0
$0.00
$0
$0.00
$0
0.00%
$739,335
100.00%
Total Count / GLA
24 113,861
100%
Occupied
17
63,113
55.4%
Available
7
50,748
44.6%
Total Avg Rent / GLA
10.36
63,113
100.0%
Totals
$654,114
$0
Notes: [1] Static analysis information obtained from 12.29-16 rent roll and 2015 income statement [2] Firestone & Looks of Beauty are gross leases [3]Analysis assumes Helping Hands (Lease pending final signature) is in and paying base rent + NNN's. Analysis does not factor in Pending Tenants abated rent. [4] Korner Shop has rent abatements for January 2018 & February 2019 which are not factored into the analysis.
22
% of Rev
FAIRMEADOWS SHOPPING CENTER
Fairmeadows Shopping Center
ESTIMATED REIMBURSEMENT REVENUE Tenant
Suite
[1] Firestone Tire
Estimated Reimbursement Revenue GLA
%
CAM Management Fee Insurance Monthly PSF Monthly PSF Monthly PSF
Real Estate Taxes Monthly PSF
Total Recovery Monthly PSF
210
5,790
5.09%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
326
4,404
3.87%
$242
$0.66
$0
$0.00
$37
$0.10
$323
$0.88
$602
$1.64
[2] Advance Auto Parts
332
6,889
6.05%
$345
$0.60
$0
$0.00
$0
$0.00
$0
$0.00
$345
$0.60
Looks of Beauty
336A
1,152
1.01%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
338
1,700
1.49%
$93
$0.66
$0
$0.00
$14
$0.10
$125
$0.88
$232
$1.64
Risen Christ Family
Popeyes La Familia Agency,
408A
1,673
1.47%
$92
$0.66
$0
$0.00
$14
$0.10
$123
$0.88
$229
$1.64
[3] 99 Cents Only Stores
410
18,728
16.45%
$921
$0.59
$0
$0.00
$137
$0.09
$1,372
$0.88
$2,430
$1.56
414
664
0.58%
$36
$0.66
$0
$0.00
$6
$0.10
$49
$0.88
$91
$1.64
A-Max Insurance Service Wellshire Financial
422
1,385
1.22%
$76
$0.66
$0
$0.00
$12
$0.10
$101
$0.88
$189
$1.64
Illana's Salon & Spa Academy
663
5,062
4.45%
$278
$0.66
$0
$0.00
$43
$0.10
$371
$0.88
$691
$1.64
The Coaches Box
703/705
1,513
1.33%
$83
$0.66
$0
$0.00
$13
$0.10
$111
$0.88
$207
$1.64
Korner Shop
727
2,400
2.11%
$132
$0.66
$0
$0.00
$20
$0.10
$176
$0.88
$328
$1.64
Available
402
7,085
6.22%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
Forever Diva Stylist
707
958
0.84%
$53
$0.66
$20
$0.25
$8
$0.10
$70
$0.88
$151
$1.89
Available
315
4,200
3.69%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
Mint Dentist
406
3,020
2.65%
$144
$0.57
$62
$0.25
$22
$0.09
$221
$0.88
$450
$1.79
Available
306
7,266
6.38%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
Available
312
14,649
12.87%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
Available
315B
6,499
5.71%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
Helping Hands
328
3,968
3.48%
$189
$0.57
$81
$0.25
$29
$0.09
$291
$0.88
$591
$1.79
Helping Hands
330
2,250
1.98%
$107
$0.57
$46
$0.25
$16
$0.09
$165
$0.88
$335
$1.79
334
807
0.71%
$39
$0.57
$17
$0.25
$6
$0.09
$59
$0.88
$120
$1.79
336B
750
0.66%
$36
$0.57
$15
$0.25
$5
$0.09
$55
$0.88
$112
$1.79
2,049
1.80%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
9,000
7.90%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
113,861
100%
$2,867
Herbalife Tax & Accounting Consulting Available
408
Available
651
Totals
$241
$382
$3,611
$7,102
Notes: Based on 2015 CAM reconciliations [1] Firestone Tire is currently a gross lease; per their recent renewal (7/1/2018), Firestone will have a Base Year Expense Stop: Year 2018, details to be provided in agreed upon Lease Amendment [2] Advance Auto Parts CAM is an estimate, as no CAM calculation is available for this tenant. [3] 99 Cents Only expenses shall not exceed as follows: CAM $1.20; Insurance $0.15; and RE Taxes $1.15. Tenant also has 5% cap on operating expenses incl. CAM, Insurance & Taxes.
23
FAIRMEADOWS SHOPPING CENTER
TENANT NOTES Tenant
Suite
GLA
Base Rental Increases Date PSF
Firestone Tire
210
5,790
Risen Christ Family
326
4,404
Advance Auto Parts
332
6,889
02/26
$16.50
336A
1,152
02/18
$12.51
338
1,700
05/19
$18.10
Looks of Beauty
Popeyes
24
Tenant Notes
FAIRMEADOWS SHOPPING CENTER
Fairmeadows Shopping Center
Option Notes Renewal
Three 5-year options at $17.18, $18.90, and $20.79 /sf/yr
Notes Tenant: Bridgestone Retail Operations, LLC. Option extension commencing 7/1/2018 has been agreed to at $15.62 psf/yr. Current lease is gross lease - option beginning 7/1/2018 will be base year expense stop
Tenant: Risen Christ Family
Three, 5-year renewal options at $18.15, $19.97 and $21.96 /sf/yr
Tenant: Straus-Frank Enterprises, LLC. Tenant's renewal options shall be deemed exercised automatically unless Tenant gives LL notice at least 180 days before expiration of the current term.
Tenant: James Hunter
One, 5-year option at FMV
Tenant: Rahum, Inc. Tenant will not open another location within 2 miles of the Premise
TENANT NOTES Tenant La Familia Agency, Firestone Tire
Tenant Notes Suite 408A 210
99 Cents Only Stores Risen Christ Family
410 326
A-Max Insurance Service Advance Auto Parts
414 332
Wellshire Financial Looks of Beauty
422 336A
Illana's Salon & Spa Academy 663 Popeyes 338
25
FAIRMEADOWS SHOPPING CENTER
GLA 1,673 5,790
Base Rental Increases Option Notes Date PSF Renewal One 5-year option at FMV Three 5-year options at $17.18, $18.90, and $20.79 /sf/yr
18,728 02/21 4,404
$6.00
664 6,889
02/26
$16.50
1,385 1,152
02/18
$12.51
5,062 1,700
Fairmeadows Shopping Center Notes Tenant: Bridgestone Retail Operations, LLC. Option extension commencing 7/1/2018 has been agreed to at $15.62 psf/yr. Current lease is gross lease - option beginning 7/1/2018 will be base year expense stop
Three, 5-year renewal options at $6.25, $6.50 & $6.75 /sf/yr
Tenant: 99 Cents Only Stores Tenant: Risen Christ Family Tenant has one-time right to terminate Lease with 180-days notice, not sooner than the 6th anniversary of the delivery date (12/4/2013). Expense Caps: CAM costs will not exceed $1.20 psf. Tax costs will not exceed $1.15 psf. Insurance costs will not exceed $0.15 psf. Tenant has exclusive right to operate a general merchandise store. Tenant restrictions include (but not limited to) movie theatre, bowling alley, banquet facility, bar or nightclub, veterinary hospital
One 5-year option at $34.81 /sf/yr Three, 5-year renewal options at $18.15, $19.97 and $21.96 /sf/yr
Tenant: A-Max Auto Insurance Tenant: Straus-Frank Enterprises, LLC. Guarantor: Endeavor General Agency, LLC Tenant's renewal options shall be deemed exercised automatically Tenant required to report sales monthly and annually. unless Tenant gives LL notice at least 180 days before expiration of the current term.
One 5-year option at $31.62/sf/yr
Tenant: Wellshire Financial Tenant: James Hunter
1/18 $8.50 One 5-year option at FMV 1/19 05/19 $9.00 $18.10 One, 5-year option at FMV
Tenant: Jaime Reyes Tenant to report sales Inc. upon LL request Tenant: Rahum, Tenant will not open another location within 2 miles of the Premise
Tenant Notes
TENANT NOTES Tenant The Coaches Box
Firestone Tire
Korner Shop
Risen Christ Family
Available
Advance Auto Parts
Forever Diva Stylist
Looks of Beauty
Available
Popeyes
26
Fairmeadows Shopping Center
Suite 703/705
210
727
326
402
332
707
336A
315
338
1,513
9/17 5,790 9/18 7/20
$11.50 $12.00 $12.50
2/18
$12.81 $13.13 $13.46 $13.80
2,400
4,404 3/19 3/20 3/21
Option Notes Renewal
Notes
Tenant: Reginald Heath Three 5-year options at $17.18, Tenant: Bridgestone Retail Operations, LLC. Tenant to report sales upon LL request
$18.90, and $20.79 /sf/yr
Option extension commencing 7/1/2018 has been agreed to at $15.62 psf/yr. Current lease is gross lease - option beginning 7/1/2018 will be base year expense stop
Tenant: Kiran Surya Chakra Tenant to report sales uponChrist LL request Tenant: Risen Family
7,085
6,889
02/26
$16.50
Three, 5-year renewal options at $18.15, $19.97 and $21.96 /sf/yr
958
Tenant: Straus-Frank Enterprises, LLC. Tenant's renewal options shall be deemed exercised automatically unless Tenant gives LL notice at least 180 days before expiration of the current term.
Tenant: Ashley Ingram Tenant to report sales upon LL request
1,152
02/18
$12.51
05/19
$18.10
Tenant: James Hunter
4,200
1,700
Mint Dentist
406
3,020
Available
306
7,266
FAIRMEADOWS SHOPPING CENTER
Base Rental Increases Date PSF
GLA
09/19 09/20 09/21 09/22 09/23 09/24 09/25
$12.00 $12.50 $13.00 $13.50 $14.00 $14.50 $15.00
One, 5-year option at FMV
Tenant: Rahum, Inc. Tenant will not open another location within 2 miles of the Premise
TENANT NOTES Tenant Available Tire Firestone
Available
Suite 312 210
Base Rental Increases Option Notes GLA Date PSF Renewal 14,649 5,790 Three 5-year options at $17.18, $18.90, and $20.79 /sf/yr
315B
6,499
326
4,404
328
3,968
332
6,889
Helping Hands
330
2,250
Looks of Beauty
336A
1,152
334
807
338
1,700
Risen Christ Family
Helping Hands
Advance Auto Parts
Herbalife
Popeyes
Tax & Accounting Consulting
Totals
27
Tenant Notes
336B
750
113,861
FAIRMEADOWS SHOPPING CENTER
Fairmeadows Shopping Center Notes Tenant: Bridgestone Retail Operations, LLC. Option extension commencing 7/1/2018 has been agreed to at $15.62 psf/yr. Current lease is gross lease - option beginning 7/1/2018 will be base year expense stop
Tenant: Risen Christ Family
02/26
$16.50
02/18
$12.51
Three, 5-year renewal options at $18.15, $19.97 and $21.96 /sf/yr
Tenant: Straus-Frank Enterprises, LLC. Tenant's renewal options shall be deemed exercised automatically unless Tenant gives LL notice at least 180 days before expiration of the current term.
Tenant: James Hunter
Tenant: Juanita Charles
05/19
$18.10
One, 5-year option at FMV
Tenant: Rahum, Inc. Tenant will not open another location within 2 miles of the Premise
INCOME & EXPENSE ANALYSIS In-place Pro-forma
% of EGR
PSF
INCOME Base Rent Percentage Rent Total Rental Revenue Expense Reimbursements CAM Recoveries Management Fee Recoveries Insurance Recoveries Real Estate Tax Recoveries Total Expense Reimbursements Effective Gross Revenue (EGR) OPERATING EXPENSES Common Area Maintenance Housekeeping Parking Lot Parking Lot Repairs Landscaping Electrical HVAC Parts and General Roof Repairs Payroll General Repairs Electricity Water & Sewer Waste Disposal Burglar Alarm Fire Protection Total Common Area Maintenance Management Fee Total Insurance Total Real Estate Taxes
$654,114 $0 $654,114
$5.74 $0.00 $5.74
88.5% 0.0% 88.5%
$34,402 $2,896 $4,589 $43,333 $85,221 $739,335
$0.30 $0.03 $0.04 $0.38 $0.75 $6.49
4.7% 0.4% 0.6% 5.9% 11.5% 100.0%
$15,843 $472 $391 $4,121 $6,642 $1,450 $199 $6,232 $6,853 $199 $12,847 $404 $7,735 $1,637 $215 $65,240 $28,056 $24,187 $100,117
$0.14 $0.00 $0.00 $0.04 $0.06 $0.01 $0.00 $0.05 $0.06 $0.00 $0.11 $0.00 $0.07 $0.01 $0.00 $0.57 $0.25 $0.21 $0.88
2.1% 0.1% 0.1% 0.6% 0.9% 0.2% 0.0% 0.8% 0.9% 0.0% 1.7% 0.1% 1.0% 0.2% 0.0% 8.8% 3.8% 3.3% 13.5%
Total Recoverable Expenses Total Non-Recoverable Expenses Total Operating Expenses Net Operating Income Capitalization Rate Cash-on-Cash Return Notes:
$217,600 $0 $217,600 $521,735 6.96% 8.32%
$1.91 $0.00 $1.91 $4.58
29.4% 0.0% 29.4% 70.6%
[1] Expense Source - 2015 Income Statement. (Analysis reflects 2015 RE Taxes, the 2015 income statement included the payment for both 2014 and 2015 taxes).
28
FAIRMEADOWS SHOPPING CENTER
EXPIRATION SCHEDULE Tenant
Suite
[2] Firestone Tire
210
GLA 5,790
%
Lease Dates Start End
5.09%
07/73
06/23
Annual
Minimum Rent Monthly
$75,264
$6,272
PSF $13.00
Recoveries Annual PSF $0
$0.00
Total Revenue $75,264
10.18%
Risen Christ Family
326
4,404
3.87%
12/96
01/18
$38,535
$3,211
$8.75
$7,219
$1.64
$45,754
6.19%
Advance Auto Parts
332
6,889
6.05%
07/15
01/31
$103,335
$8,611
$15.00
$4,145
$0.60
$107,480
14.54%
336A
1,152
1.01%
11/11
01/19
$13,985
$1,165
$12.14
$0
$0.00
$13,985
1.89%
[2] Looks of Beauty Popeyes La Familia Agency, 99 Cents Only Stores
338
1,700
1.49%
10/05
04/24
$28,900
$2,408
$17.00
$2,787
$1.64
$31,687
4.29%
408A
1,673
1.47%
06/14
06/17
$21,749
$1,812
$13.00
$2,742
$1.64
$24,491
3.31%
410
18,728
16.45%
12/13
01/26
$107,686
$8,974
$5.75
$29,165
$1.56
$136,851
18.51%
A-Max Insurance Service
414
664
0.58%
05/09
07/19
$21,012
$1,751
$31.64
$1,088
$1.64
$22,100
2.99%
Wellshire Financial
422
1,385
1.22%
12/09
07/20
$37,800
$3,150
$27.29
$2,270
$1.64
$40,070
5.42%
Illana's Salon & Spa Academy The Coaches Box [4] Korner Shop
663
5,062
4.45%
12/14
12/19
$40,496
$3,375
$8.00
$8,298
$1.64
$48,794
6.60%
703/705
1,513
1.33%
11/13
07/22
$16,643
$1,387
$11.00
$2,480
$1.64
$19,123
2.59%
727
2,400
2.11%
08/12
02/22
$30,000
$2,500
$12.50
$3,934
$1.64
$33,934
4.59%
Available
402
7,085
6.22%
-
-
Forever Diva Stylist
707
958
0.84%
08/16
08/18
Available
315
4,200
3.69%
-
-
$0
$0
$0.00
$0
$0.00
$0
0.00%
$10,059
$838
$10.50
$1,806
$1.89
$11,865
1.60%
$0
$0
$0.00
$0
$0.00
$0
0.00%
$34,730
$2,894
$11.50
$5,395
$1.79
$40,125
5.43%
$0
$0
$0.00
$0
$0.00
$0
0.00%
Mint Dentist
406
3,020
2.65%
11/16
10/26
Available
306
7,266
6.38%
-
-
Available
312
14,649
12.87%
-
-
$0
$0
$0.00
$0
$0.00
$0
0.00%
Available
315B
6,499
5.71%
-
-
$0
$0
$0.00
$0
$0.00
$0
0.00%
[3] Helping Hands
328
3,968
3.48%
03/17
02/22
$35,712
$2,976
$9.00
$7,089
$1.79
$42,801
5.79%
[3] Helping Hands
330
2,250
1.98%
03/17
02/22
$20,250
$1,688
$9.00
$4,020
$1.79
$24,270
3.28%
334
807
0.71%
10/16
10/19
$8,958
$746
$11.10
$1,442
$1.79
$10,399
1.41%
336B
750
0.66%
02/17
01/18
$9,000
$750
$12.00
$1,340
$1.79
$10,340
1.40%
Herbalife Tax & Accounting Consulting Available
408
2,049
1.80%
-
-
$0
$0
$0.00
$0
$0.00
$0
0.00%
Available
651
9,000
7.90%
-
-
$0
$0
$0.00
$0
$0.00
$0
0.00%
$739,335
100.00%
Total Count / GLA
24 113,861
100%
Occupied
17
63,113
55.4%
Available
7
50,748
44.6%
Total Avg Rent / GLA
10.36
63,113
100.0%
Totals
$654,114
$0
Notes: [1] Static analysis information obtained from 12.29-16 rent roll and 2015 income statement [2] Firestone & Looks of Beauty are gross leases [3]Analysis assumes Helping Hands (Lease pending final signature) is in and paying base rent + NNN's. Analysis does not factor in Pending Tenants abated rent. [4] Korner Shop has rent abatements for January 2018 & February 2019 which are not factored into the analysis.
29
% of Rev
FAIRMEADOWS SHOPPING CENTER
For more information, please contact: : : Jennifer Pierson
: : Beth Pierson
President and CEO
Vice President Operations
: : Debora Haught Client Services Director
: : Will Meachum Business Development
214-354-6820 C
214-855-2951 O
214-855-2959 O
214-540-0524 O
jp@PiersonRetailAdvisors.com
214-208-4545 C
Debora@PiersonRetailAdvisors.com
Will@PiersonRetailAdvisors.com
Beth@PiersonRetailAdvisors.com
: : Ron Sweedyk
: : Nicole Maser
Financial Analyst 214-855-2954 O Ron@PiersonRetailAdvisors.com
Senior Analyst
: : Reena Rana
Graphic Designer
: : Kasey Haught Comps Analyst
214-855-2954 O
214-855-2954 O
214-855-2954 O
Nicole@PiersonRetailAdvisors.com
Reena@PiersonRetailAdvisors.com
Kasey@PiersonRetailAdvisors.com
Retail Investment Sales This is a confidential Offering Memorandum has been prepared by Pierson Retail Advisors, Inc. and is intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property. This Offering Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the “Owner”), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and Pierson Retail Advisors, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Offering Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Offering Memorandum in any manner. Neither the Owner or Pierson Retail Advisors, Inc, nor any representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.
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The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/ or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived. By receipt of this Offering Memorandum, you agree that this Offering Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Offering Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or Pierson Retail Advisors, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or Pierson Retail Advisors, Inc. If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to Pierson Retail Advisors, Inc. © 2017 Pierson Retail Advisors, Inc. The information contained in this document has been obtained from sources believed reliable. While Pierson Retail Advisors, Inc. does not doubt its accuracy, Pierson Retail Advisors, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.