FITZHUGH AVE RETAIL STRIP DALLAS, TX
PRI C I N G & FI N A NC IA L ANALYS IS
F IT Z H U G H AV E R E TAIL ST R IP
Fitzhugh Ave Retail Strip 2505 Fitzhugh Ave Dallas, TX 75204
OFFERING SUMMARY Price As Is Cap Rate As Is Net Operating Income Pro Forma Cap Rate Pro Forma Net Operating Income Price PSF Occupancy Year Built Gross Leasable Area Lot Size
$3,900,000 5.42% $211,515 6.73% $262,505 $520.00 100.0% 1963 7,500 SF 0.49 Acres
F I N A N C I A L A N A LY S I S
2
PRI C I N G & FI N A NC IA L ANALYS IS
F IT Z H U G H AV E R E TAIL ST R IP
As Is INCOME & EXPENSES - AS IS Base Rent - Occupied Space GROSS POTENTIAL RENT
CURRENT 100%
PSF
EXPENSES
$211,518
$28.20
Real Estate Taxes
$211,518
$28.20
Insurance
Expense Reimbursements
CURRENT
PSF
$69,356
$9.25
$7,385
$0.98
CAM
CAM Recoveries
$12,339
$1.65
Administrative
$5,019
$0.67
Management Fee Recoveries
$11,825
$1.58
Electricity
$540
$0.07
Insurance Recoveries
$7,385
$0.98
Landscaping
$400
$0.05
$69,356
$9.25
Light Maintenance
$600
$0.08
Total Expense Reimbursements
$100,905
$13.45
Misc R&M
$1,000
$0.13
EFFECTIVE GROSS REVENUE
$312,420
$41.66
Porter/Sweeper
$4,380
$0.58
Power Washing
$400
$0.05
Real Estate Tax Recoveries
Operating Expenses Total CAM
$12,339
$1.65
Total CAM
$12,339
$1.65
Management Fee
$11,825
$1.58
Management Fee
$11,825
$1.58
Total Insurance
$7,385
$0.98
Total Expenses
$100,905
$13.45
$69,356
$9.25
$100,905
$13.45
$211,515
$28.20
Total Real Estate Taxes Total Recoverable Expenses Net Operating Income
F I N A N C I A L A N A LY S I S
3
RE NT RO L L
F IT Z H U G H AV E R E TAIL ST R IP
As Is Tenant
Suite
SQ FT
% of SQFT
Lease Dates
Minimum Rent
Recoveries
Total
Start
End
Annual
Monthly
PSF
Annual
PSF
Revenue
% of Revenue
El Come Taco
2513
1,400
18.67%
07/13
07/23
$38,586
$3,215
$27.56
$18,836
$13.45
$57,421
18.38%
El Come Taco
2511
700
9.33%
10/18
10/23
$23,800
$1,983
$34.00
$9,418
$13.45
$33,218
10.63%
Eco Cleaners
2513-100
600
8.00%
01/19
01/24
$18,000
$1,500
$30.00
$8,072
$13.45
$26,072
8.35%
2507
700
9.33%
07/10
09/21
$21,433
$1,786
$30.62
$9,418
$13.45
$30,851
9.87%
2505-100
2,600
34.67%
07/15
08/25
$57,200
$4,767
$22.00
$34,980
$13.45
$92,180
29.50%
2505
1,500
20.00%
07/17
07/27
$52,500
$4,375
$35.00
$20,181
$13.45
$72,681
23.26%
Total Count/GLA
6
7,500
100%
$211,518
$17,627
$312,423
100.00%
Occupied
6
7,500
100.0%
Available
0
0
0.0%
$28.20
7,500
100.0%
Unique Beauty Salon Trans Dental Pho Mi
Total Avg Rent
$100,905
F I N A N C I A L A N A LY S I S
4
ESTIMATED REIMBURSEMENT REVENUE Tenant
Suite
SQ FT
F IT Z H U G H AV E R E TAIL ST R IP
% of SQFT
CAM
Management Fee
Insurance
Real Estate Taxes
Total Recovery
Monthly
PSF
Monthly
PSF
Monthly
PSF
Monthly
PSF
Monthly
PSF
El Come Taco
2513
1,400
18.67%
$192
$1.65
$184
$1.58
$115
$0.98
$1,079
$9.25
$1,570
$13.45
El Come Taco
2511
700
9.33%
$96
$1.65
$92
$1.58
$57
$0.98
$539
$9.25
$785
$13.45
Eco Cleaners
2513-100
600
8.00%
$82
$1.65
$79
$1.58
$49
$0.98
$462
$9.25
$673
$13.45
2507
700
9.33%
$96
$1.65
$92
$1.58
$57
$0.98
$539
$9.25
$785
$13.45
2505-100
2,600
34.67%
$356
$1.65
$342
$1.58
$213
$0.98
$2,004
$9.25
$2,915
$13.45
2505
1,500
20.00%
$206
$1.65
$197
$1.58
$123
$0.98
$1,156
$9.25
$1,682
$13.45
7,500
100%
$1,028
Unique Beauty Salon Trans Dental Pho Mi TOTALS
$985
$615
$5,780
$8,409
F I N A N C I A L A N A LY S I S
5
L E A SE PROVIS ION S
Tenant
Suite
F IT Z H U G H AV E R E TAIL ST R IP
Base Rental Increases
SQ FT
User Restrictions & Exclusive Rights
Renewal Options
Date
PSF
Options
Date
PSF
Termination Rights
Sales Reporting
El Come Taco
2513
1,400
-
-
1x5
8/1/2023
FMV
-
El Come Taco
2511
700
-
-
1x5
11/1/2023
Greater of FMV or 10%
-
Eco Cleaners
2513-100
600
-
-
-
-
-
-
-
-
2507
700
10/1/2019 10/1/2020
$31.38 $32.17
-
-
-
-
-
-
2505-100
2,600
8/1/2021
$22.50
2x5
9/1/2025 9/1/2030
FMV not to exceed 105%
-
Yes
2505
1,500
8/1/2022
$38.50
2x5
8/1/2027 8/1/2032
$43.35 $46.59
-
Yes
Unique Beauty Salon Trans Dental
Pho Mi TOTAL
Exclusive use in Center General/ Pediatric Dental -
Tenant has one-time right to terminate with 90 day notice after year 2. Tenant must pay for the 90 day notice period and a cancellation fee equal to the next 6 months rent.
No
Yes
7,500
F I N A N C I A L A N A LY S I S
6
PRI C I N G & FI N A NC IA L ANALYS IS
F IT Z H U G H AV E R E TAIL ST R IP
Pro Forma INCOME & EXPENSES Base Rent - Occupied Space GROSS POTENTIAL RENT
PRO FORMA 100%
PSF
EXPENSES
$262,500
$35.00
Real Estate Taxes
$262,500
$35.00
Insurance
Expense Reimbursements
PRO FORMA
PSF
$69,356
$9.25
$7,385
$0.98
CAM
CAM Recoveries
$12,339
$1.65
Administrative
$5,019
$0.67
Management Fee Recoveries
$11,825
$1.58
Electricity
$540
$0.07
Insurance Recoveries
$7,385
$0.98
Landscaping
$400
$0.05
$69,356
$9.25
Light Maintenance
$600
$0.08
Total Expense Reimbursements
$100,905
$13.45
Misc R&M
$1,000
$0.13
EFFECTIVE GROSS REVENUE
$363,410
$48.45
Porter/Sweeper
$4,380
$0.58
Power Washing
$400
$0.05
Real Estate Tax Recoveries
Operating Expenses Total CAM
$12,339
$1.65
Total CAM
$12,339
$1.65
Management Fee
$11,825
$1.58
Management Fee
$11,825
$1.58
Total Insurance
$7,385
$0.98
Total Expenses
$100,905
$13.45
$69,356
$9.25
$100,905
$13.45
$211,515
$28.20
Total Real Estate Taxes Total Recoverable Expenses Net Operating Income
F I N A N C I A L A N A LY S I S
7
RE NT RO L L
F IT Z H U G H AV E R E TAIL ST R IP
Pro Forma Tenant
Suite
SQ FT
% of SQFT
Lease Dates
Minimum Rent
Recoveries
Total
Start
End
Annual
Monthly
PSF
Annual
PSF
Revenue
% of Revenue
El Come Taco
2513
1,400
18.67%
07/13
07/23
$49,000
$4,083
$35.00
$18,836
$13.45
$67,836
18.67%
El Come Taco
2511
700
9.33%
10/18
10/23
$24,500
$2,042
$35.00
$9,418
$13.45
$33,918
9.33%
Eco Cleaners
2513-100
600
8.00%
01/19
01/24
$21,000
$1,750
$35.00
$8,072
$13.45
$29,072
8.00%
2507
700
9.33%
07/10
09/21
$24,500
$2,042
$35.00
$9,418
$13.45
$33,918
9.33%
2505-100
2,600
34.67%
07/15
08/25
$91,000
$7,583
$35.00
$34,980
$13.45
$125,980
34.67%
2505
1,500
20.00%
07/17
07/27
$52,500
$4,375
$35.00
$20,181
$13.45
$72,681
20.00%
Total Count/GLA
6
7,500
100%
$262,500
$21,875
$363,405
100.00%
Occupied
6
7,500
100.0%
Available
0
0
0.0%
$35.00
7,500
100.0%
Unique Beauty Salon Trans Dental Pho Mi
Total Avg Rent
$100,905
F I N A N C I A L A N A LY S I S
8
TE NA NT INF ORMAT I ON
F IT Z H U G H AV E R E TAIL ST R IP
Tenant
El Come Taco
Locations
1
Public/Private
Private
Line of Business
Established in 2013, El Come Taco brings the roots of Mexico City to Dallas serving the most traditional fresh tacos and drinks based and operated in a family business creating a great atmosphere.
Note
El Come Taco owner Luis Villalva is opening a “speakeasy” mezcal bar, La Viuda Negra, attached to El Come Taco. The location will open in early 2019.
Tenant
ZRG Concepts
Locations
4 Concepts
Public/Private
Private
Line of Business
ZRG Concepts is a Dallas-area based restaurant groups with four concepts: ZaLat Pizza, DaLat Restaurant & Bar, ZRG Concepts and Project A.I. The company’s catering services include variety of cuisines, from traditional Vietnamese, to hand-made NYC pizza and Asian fusion.
Tenant
transDental
Locations
1
Public/Private
Private
Line of Business
transDental is a modern, state-of-the-art practice offering Dallas-area patients a fullrange of general and cosmetic dental services, from routine check-ups to complete smile makeovers. Dr. Sang Tran and his staff practices conservative, proactive dentistry utilizing the latest in dental technology.
PROPERTY DESCRIPTION
9
I N VE S TMENT HI GHLI GHT S
F IT Z H U G H AV E R E TAIL ST R IP
• Trophy Location: The Property is Located on Fitzhugh Ave in the Heart of Dallas Surrounding the Knox-Henderson District. This is a High Pride of Ownership Location Minutes from Uptown and Downtown Dallas. • Below-Market Rents: The Average Rental Rate at Fitzhugh Ave Strip is $28/SF, While Market Rent in the Immediate Trade Area is Leasing at $35/SF. • T remendous Trade Area: The Property is Situated in a Dense Infill Location in the Heart of a Thriving Multi-Family and Retail Development Corridor. Surrounding National Retailers include McDonalds, Walgreens, Kroger, LA Fitness, Whataburger, Sprouts and Many More. • H igh Foot Traffic: There are Currently Over 6,855 Multi-Family Units in a 1/2-Mile Radius, Including Several Brand New Developments Along Fitzhugh Ave. The Property Benefits from a High Volume of Foot Traffic. • E xtremely High Traffic Counts: US-75 (335,000 VPD) and Fitzhugh Ave (10,660 VPD) Providing an Exceptional Commerce Base. • Exceptional Demographics: Average Household Income Within a 3-Mile Radius is $112,701, Which is Over 1.5x the National Average Income. The Surrounding Area has Experienced Population Growth Over 19% Since 2010. • New Roof: The Roofing was Recently Replaced. This will Benefit an Investor as Minimal Capital Improvements Are Likely to be Required in the Near Future. PROPERTY DESCRIPTION
10
S I T E PL A N
F IT Z H U G H AV E R E TAIL ST R IP
El Come Taco
2513-100
2507
Eco Cleaners
Unique Beauty Salon
Trans Dental
Pho Mi
2505-100 2505
2511/2513
PROPERTY DESCRIPTION
11
A E R I AL MA P
F IT Z H U G H AV E R E TAIL ST R IP
GREENVILLE AVE 18,565 VPD
BEN MILAM ELEMENTARY SCHOOL
H EN V A
33 5
N
,0 0
SO
0V
ER
PD
D E ,8 19
NORTH DALLAS HIGH SCHOOL
80 VP D
West Village
FI TZ H U G H V A E , 10 66 0 VP D
PROPERTY DESCRIPTION
12
A E R I AL MA P
F IT Z H U G H AV E R E TAIL ST R IP
VUE FITZHUGH 226 UNITS
EASTON 182 UNITS B+F FLATS 475 UNITS 50,000 SF RETAIL
CAMDEN HENDERSON 106 UNITS BELMONT CAMDEN 475 UNITS
H EN D ER N
STRATA 315 UNITS
V A
METROPOLITAN AT CITYPLACE 170 UNITS
SO
FITZHUGH COLE’S MANOR URBAN FLATS 276 UNITS 452 UNITS 8.7 AC for REDEVELOPMENT CITYPLACE HEIGHTS 396 UNITS
AVANA KNOX HENDERSON 182 UNITS
E
FI H V A E
OAKWOOD DALLAS UPTOWN 232 UNITS
TRAMELL CROW 16 ACRES MIXED USE 2,000 MF UNITS HOTEL, OFFICE & RETAIL
G
MONDRIAN AT CITYPLACE 218 UNITS
ZONED MF-2
U
MONTERREY 371 UNITS
H
MARQUIS AT WEST VILLAGE 157 UNITS
TZ
WEST VILLAGE UPTOWN 75 UNITS
ALARA UPTOWN 294 UNITS 2660 AT CITYPLACE 300 UNITS
PROPERTY DESCRIPTION
13
A E R I AL MA P
F IT Z H U G H AV E R E TAIL ST R IP
B+F FLATS 371 UNITS
EASTON 182 UNITS
AVANA KNOX HENDERSON 182 UNITS
CAMDEN HENDERSON 106 UNITS
BELMONT CAMDEN 475 UNITS
FITZHUGH AVE RETAIL
PROPERTY DESCRIPTION
14
L E A SE COMPA RABLES
Property
F IT Z H U G H AV E R E TAIL ST R IP
GLA
Yr Built/ Renovated Occupancy
Major Tenants
Available SF
Rental Rates
NNN
Fitzhugh Ave Retail Strip ï‚« 2505 Fitzhugh Ave Dallas, TX
7,500
1963
100.0%
Eco Cleaners, El Come Taco, Unique Beauty Salon
0
$22.00 - $35.00
$13.45
The Shops on Henderson 1 2323 N Henderson Ave Dallas, TX
20,000
1964
100.0%
Henderson Tap House, Dallas Lighthouse, Veritas Wine Room
0
$34.00 - $42.00
$15.00
Greenville Retail Strip 2 1917 Greenville Ave Dallas, TX
5,660
1929
100.0%
Art Studio, WalkWay
0
$32.00 - $36.00
$7.50
Henderson Retail Strip 3 2918-2920 N Henderson Ave Dallas, TX
9,000
1929/2006
100.0%
Mister Rich, Amy Davis Hair, Salon
0
$35.00 - $40.00
$9.00
Capitol Center 4 2401-2405 N Henderson Ave Dallas, TX
6,098
1948/2007
100.0%
Capitol Pub, Hideaway
0
$33.00-$35.00
$15.00
PROPERTY DESCRIPTION
15
L E A SE COMPA RABLES
F IT Z H U G H AV E R E TAIL ST R IP
Fitzhugh Ave Retail Strip 1
The Shops on Henderson
2
Greenville Retail Strip
3
Henderson Retail Strip
4
Capitol Center
3
4 1
2
PROPERTY DESCRIPTION
16
LO C AL MA P
F IT Z H U G H AV E R E TAIL ST R IP
PROPERTY DESCRIPTION
17
REG IONA L MA P
F IT Z H U G H AV E R E TAIL ST R IP
PROPERTY DESCRIPTION
18
M A R KET S U MMARY
F IT Z H U G H AV E R E TAIL ST R IP
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 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 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
2 3rd 4th 22
nd
Texas, Fastest Growing Economy in the U.S. (24/7 Wall St.) Fastest Growing Cities in the U.S. (Forbes) Largest Metropolitan Area in the United States Fortune 500 Companies Call DFW Home (Fortune)
10K
Home to over 10,000 corporate headquarters, making it the largest concentration in the U.S.
PROPERTY DESCRIPTION
19
D E M OG RA PHIC STAT I ST I CS
F IT Z H U G H AV E R E TAIL ST R IP
1 MILE
3 MILE
5 MILE
38,839 36,349 30,546 6.85% 19.00% 15,488
214,738 202,567 176,940 6.01% 14.48% 60,148
406,259 383,581 339,603 5.91% 12.95% 130,286
29,491 3,864 375 1,924 55 640 2
163,033 24,530 1,648 9,665 145 3,547 57
285,872 69,895 3,695 17,502 298 6,318 133
19,318 18,106 15,371 6.69% 17.79% 4,498 13,607 $93,095 $65,615
99,713 93,726 81,199 6.39% 15.43% 33,420 60,307 $112,701 $78,088
176,141 166,148 147,420 6.01% 12.70% 62,207 103,941 $99,388 $63,703
3,688 3,185 3,247 2,203 1,782 954 1,130 1,915
14,349 15,600 15,461 11,762 8,335 5,551 6,820 15,848
33,717 33,429 26,009 18,494 12,838 8,251 9,817 23,594
Population: 2023 Projection 2018 Estimate 2010 Census Growth 2018-2023 Growth 2010-2018 2018 Population Hispanic Origin
2018 Population by Race: White Black Am. Indian & Alaskan Asian Hawaiian & Pacific Island Other U.S. Armed Forces:
Households: 2023 Projection 2018 Estimate 2010 Census Growth 2018 - 2023 Growth 2010 - 2018 Owner Occupied Renter Occupied 2018 Avg Household Income (National Avg - $75,558) 2018 Med Household Income (National Avg - $53,889)
2018 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+ Demographic data © CoStar 2018
P R O P E R T Y D E S C R I P T I O N 20
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
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