FRISCO PLAZA FRISCO, TX (DALLAS MSA)
PRICING & FINANCIAL ANALYSIS
F R ISCO P LAZ A
Frisco Plaza 9500 Dallas Pkwy Frisco, TX 75033
OFFERING SUMMARY Price Cap Rate Net Operating Income Price PSF Occupancy Year Built Gross Leasable Area Lot Size
$3,850,000 7.50% $288,810 $430.26 100.0% 2015 8,948 SF 1.08 Acres
F I N A N C I A L A N A LY S I S
2
PRICING & FINANCIAL ANALYSIS
F R ISCO P LAZ A
PROJECTED INCOME & EXPENSES Base Rent - Occupied Space
100%
GROSS POTENTIAL RENT
CURRENT
PSF
$288,810
$32.28
$288,810
$32.28
Expense Reimbursements
EXPENSES
CURRENT
PSF
Real Estate Taxes
$50,492
$5.64
Insurance
$6,660
$0.74
CAM
CAM Recoveries
$14,895
$1.66
Electric
$1,313
$0.15
Management Fee Recoveries
$11,272
$1.26
Water/Sewer/Trash
$8,013
$0.90
Insurance Recoveries
$6,660
$0.74
Cleaning
$1,050
$0.12
Real Estate Tax Recoveries
$50,492
$5.64
Fire/Security
$1,067
$0.12
Total Expense Reimbursements
$83,320
$9.31
Landscaping
$1,899
$0.21
EFFECTIVE GROSS REVENUE
$372,130
$41.59
Tax Consulting
$1,229
$0.14
$325
$0.04
$14,895
$1.66
$11,272
$1.26
$83,320
$9.31
Repair & Maintenance
Operating Expenses $14,895
$1.66
Total CAM
$11,272
$1.26
Management Fee
Total Insurance
$6,660
$0.74
Total Expenses
Total CAM Management Fee
3.00%
Total Real Estate Taxes
$50,492
$5.64
Total Recoverable Expenses
$83,320
$9.31
Net Operating Income
$288,810
$32.28
Capitalization Rate Capital Reserves at $0.15 PSF Cash Flow before Debt Service Market Loan Cash Flow after Debt Service Cash-on-Cash Return
3.00%
7.50% $1,342 $287,468 $186,009 $101,459 10.68%
F I N A N C I A L A N A LY S I S
3
RE NT RO L L
Tenant
F R ISCO P LAZ A
Suite
SQ FT
% of SQFT
Lease Dates
Minimum Rent
Recoveries
Total
Start
End
Annual
Monthly
PSF
Annual
PSF
Revenue
% of Revenue
DOC (Direct Orthopedic Care)
100
2,342
26.17%
08/16
12/26
$84,312
$7,026
$36.00
$21,808
$9.31
$106,120
28.52%
Mezcal Taco
200
1,378
15.40%
03/17
08/22
$41,340
$3,445
$30.00
$12,831
$9.31
$54,171
14.56%
Industrial Cigars
400
3,048
34.06%
01/17
06/22
$94,488
$7,874
$31.00
$28,382
$9.31
$122,870
33.02%
Charminar Café
600
2,180
24.36%
02/19
05/24
$68,670
$5,723
$31.50
$20,299
$9.31
$88,969
23.91%
Total Count/GLA
4
8,948
100%
$372,130
100.00%
Occupied
4
8,948
100.0%
Available
0
0
0.0%
$32.28
8,948
100.0%
Total Avg Rent
$288,810
$83,320
ESTIMATED REIMBURSEMENT REVENUE
Tenant
Suite
SQ FT
% of SQFT
CAM
Management Fee
Insurance
Real Estate Taxes
Total Recovery
Monthly
PSF
Monthly
PSF
Monthly
PSF
Monthly
PSF
Monthly
PSF
DOC (Direct Orthopedic Care)
100
2,342
26.17%
$325
$1.66
$246
$1.26
$145
$0.74
$1,101
$5.64
$1,817
$9.31
Mezcal Taco
200
1,378
15.40%
$191
$1.66
$145
$1.26
$85
$0.74
$648
$5.64
$1,069
$9.31
Industrial Cigars
400
3,048
34.06%
$423
$1.66
$320
$1.26
$189
$0.74
$1,433
$5.64
$2,365
$9.31
Charminar Café
600
2,180
24.36%
$302
$1.66
$229
$1.26
$135
$0.74
$1,025
$5.64
$1,692
$9.31
8,948
100%
$1,241
TOTALS
$939
$555
$4,208
$6,943
F I N A N C I A L A N A LY S I S
4
L E A SE PROVIS ION S
Tenant
F R ISCO P LAZ A
Suite
SQ FT
Base Rental Increases
Renewal Options
Date
PSF
Options
User Restrictions & Exclusive Rights
Termination Rights
Sales Reporting
DOC (Direct Orthopedic Care)
100
2,342
1/1/2022
$37.77
1 x 5 @ MKT
Yes
No
No
Mezcal Taco
200
1,378
9/1/2020
$32.00
1 x 5 @ MKT
Yes
No
No
Industrial Cigars
400
3,048
1/1/2019
$31.00
2 x 5 @ MKT or 10% greater than the previous year
Yes
Yes*
No
Charminar Café
600
2,180
-
-
1 x 5 @ MKT
No
No
No
TOTAL
8,948
*The termination rights only apply if national laws regarding Cigars change
F I N A N C I A L A N A LY S I S
5
TE NA NT INF ORMAT I ON
F R ISCO P LAZ A
DBA
DOC
Entity on Lease
DOC, LLC
Corporate/Franchise
Corporate
Locations
8 locations in Idaho, Texas, and expanding
Credit Rating
Not Rated
Public/Private
Private
Line of Business
Direct Orthopedic Care (DOC) is a walk-in orthopedic clinic that’s open 7 days a week with no appointment required. DOC’s Board-certified Orthopedic Surgeons and Physician Assistants evaluate and treat all disorders of the musculoskeletal system including sprains, fractures, ligament injuries, tendonitis, arthritis and more.
DBA
Industrial Cigar Company
Entity on Lease
Frakes Family Cigars, LLC
Corporate/Franchise
Corporate
Locations
1
Credit Rating
Not Rated
Public/Private
Private
Line of Business
Industrial Cigar Company is a family-owned cigar lounge that offers a public and private lounge space, two walk-in humidors and retail space. With a nostalgic factory style interior, grabbing inspiration from 1930’s and 40’s era decor, Industrial Cigar Company caters to affluent Frisco residents including professional athletes (Frisco is home of the practice stadium for the Dallas Cowboys) and top executives.
PROPERTY DESCRIPTION
6
I N VE S TMENT HI GHLI GHT S
F R ISCO P LAZ A
• New Construction with Strong Credit Tenants: The property is a high-quality construction built in 2016, meaning minimal chance of repairs in upcoming years. It is 100% occupied by four tenants including two restaurants, a cigar shop, and the flagship location of an orthopedic care clinic. • Exceptional Positioning: The property is located on Dallas Parkway directly in front of Toyota Stadium and right off of Main Street in the heart of Frisco. Surrounding national retailers such as Home Depot, Target, Cinemark and Costco drive traffic to the area. • Toyota Stadium: Directly behind the property is Toyota Stadium and Toyota Soccer Center, a 145acre multipurpose facility that is home of the FC Dallas soccer team and the Frisco Bowl as well as the host of numerous concerts and events that draw in more than a million people each year. • High Visibility and Traffic: Frisco Plaza is visible to both Dallas North Tollway and its access roads, offering exposure to all passing traffic. Traffic counts exceed 86,000 vehicles per day along the Dallas North Tollway and 35,000 along Main Street. • High Growth, High Income Area: Population within one mile has grown 61% over the past decade with expected growth of another 16% in the next 4 years. Additionally, the average household income in a one mile radius is 1.5x the national average. PROPERTY DESCRIPTION
7
S I T E PL A N
Charminar Café
F R ISCO P LAZ A
PROPERTY DESCRIPTION
8
A E R I AL MA P
DALLAS PKWY
WAKELAND HIGH SCHOOL
86,044 VPD
F R ISCO P LAZ A
CARROLL ELEMENTARY SCHOOL
PROPERTY DESCRIPTION
9
L E A SE COMPA RABLES
Property
F R ISCO P LAZ A
GLA
Yr Built/ Renovated Occupancy
Major Tenants
Available SF
Rental Rates
NNN
DOC, Mezcal Taco, Industrial Cigars
0
$30.00 - $36.00
$9.31
Mi Cocina, Liberty Burger, Zaytinya Howard Wang's, The Donut Kitchen, Trophy Park, Neighborhood Services
20,452
$50.00 - $55.00
$13.00
$40.00 - $42.00
$12.00
Frisco Plaza ï‚« 9500 Dallas Pkwy Frisco, TX 75033
8,948
2016
The Star 1 1 Cowboys Way Frisco, TX 75034
183,806
2017
Frisco Market Center 2 9169 Dallas Pkwy Frisco, TX 75034
20,823
2016
100.0%
Snappy Salads, Zoe's Kitchen, Tacos 4 Life, Super Chix, Rockfish Seafood
0
The Shops at Starwood 3 6959 Lebanon Rd Frisco, TX 75034
55,373
2008
92.0%
Smash Burger, Kotta Sushi, Paper Affair, Panache at Home, Starwood Nail Salon
4,433
Frisco Retail 4 5062 W Main St Frisco, TX 75034
8,796
2014
100.0%
Panera Bread, FedEx Office
0
$32.00 - $37.00
$8.25
Eldorado Marketplace 5 5000 Eldorado Parkway Frisco, TX
330,432
2008
98.5%
Market Street, AT&T, Chase Bank, Sleep Experts, Raising Canes
4,900
$26.00-$35.00
$6.50
World Cup Plaza 6 9250 - 9450 Dallas Pkwy Frisco, TX 75033
88,297
2008
100.0%
Subway, Smoke & Vapor, Firsco Diner, Rock & Bach, Nutrishop, Ace's
0
$30.00 - $32.00
$8.30
100.0%
88.9%
(Under Construction)
$30.00 - $40.00
$7.74
PROPERTY DESCRIPTION
10
L E A SE COMPA RABLES
F R ISCO P LAZ A
5
Frisco Plaza 1
The Star
2
Frisco Market Center
3
The Shops at Starwood
4
Frisco Retail
5
Eldorado Marketplace
6
World Cup Plaza
4
2
6
3
1
PROPERTY DESCRIPTION
11
REG IONA L MA P
F R ISCO P LAZ A
Frisco Plaza
PROPERTY DESCRIPTION
12
LO C AL MA P
F R ISCO P LAZ A
Frisco Plaza
PROPERTY DESCRIPTION
13
M A R KET S U MMARY
F R ISCO P LAZ A
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
14
D E M OG RA PHIC STAT I ST I CS
F R ISCO P LAZ A
1 MILE
3 MILE
5 MILE
6,262 5,336 3,312 17.35% 61.11% 1,098
97,201 84,020 60,789 15.69% 38.22% 12,615
244,704 210,464 144,033 16.27% 46.12% 34,198
4,252 463 46 432 3 140 0
64,786 7,545 586 8,741 61 2,301 60
157,284 22,664 1,498 22,788 157 6,072 202
2,149 1,826 1,085 17.69% 68.29% 1,263 563 $133,012 $103,469
32,384 27,992 20,026 15.69% 39.78% 21,575 6,418 $147,876 $125,763
84,274 72,442 48,789 16.33% 48.48% 56,254 16,188 $134,151 $113,782
93 311 217 263 209 143 246 344
1,292 3,354 2,722 3,194 3,330 3,424 4,533 6,144
3,807 8,284 8,818 9,908 9,802 8,560 11,572 11,691
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
PROPERTY DESCRIPTION
15
CONFIDENTIALITY AGREEMENT The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from STRIVE and it should not be made available to any other person or entity without the written consent of STRIVE. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to STRIVE. This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. STRIVE has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenantâ&#x20AC;&#x2122;s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, STRIVE has not verified, and will not verify, any of the information contained herein, nor has STRIVE conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT STRIVE AGENT FOR MORE DETAILS.
Commercial Disclaimer STRIVE hereby advises all prospective purchasers of commercial property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, STRIVE has not and will not verify any of this information, nor has STRIVE conducted any investigation regarding these matters. STRIVE makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a commercial property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. STRIVE expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a commercial property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any commercial property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenants and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenants history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term leases, including the likelihood of locating replacement tenants if any of the current tenants should default or abandon the property, and the lease terms that Buyer may be able to negotiate with any potential replacement tenants considering the location of the property, and Buyer’s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release STRIVE and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this commercial property.
Information About Brokerage Services
Texas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords. TYPES OF REAL ESTATE LICENSE HOLDERS: • A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker. • A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker. A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): • Put the interests of the client above all others, including the broker’s own interests; • Inform the client of any material information about the property or transaction received by the broker; • Answer the client’s questions and present any offer to or counter-offer from the client; and • Treat all parties to a real estate transaction honestly and fairly. A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION: AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner’s agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner’s agent must perform the broker’s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer’s agent. AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant’s agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer’s agent must perform the broker’s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by th e seller or seller’s agent. AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. A broker who acts as an intermediary: • Must treat all parties to the transaction impartially and fairly; • May, with the parties’ written consent, appoint a different license holder associated with the broker to each party (owner and • buyer) to communicate with, provide opinions and advice to, and carry out the instructions of each party to the transaction. • Must not, unless specifically authorized in writing to do so by the party, disclose: ӽӽ that the owner will accept a price less than the written asking price; ӽӽ that the buyer/tenant will pay a price greater than the price submitted in a written offer; and ӽӽ any confidential information or any other information that a party specifically instructs the broker in writing not to disclose, unless required to do so by law. AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: • The broker’s duties and responsibilities to you, and your obligations under the representation agreement. • Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated. LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker’s services. Please acknowledge receipt of this notice below and retain a copy for your records.
Regulated by the Texas Real Estate Commission
Information available at www.trec.texas.gov IABS 1-0
exclusively listed 469.844.8880
STRIVERE.COM