MCKINNEY MARKETPLACE MCKINNEY, TX (DALLAS MSA)
PRICING & FINANCIAL ANALYSIS
M C K INNE Y M AR K E T P LAC E
McKinney Marketplace 9241 Virginia Parkway McKinney, TX 75071
OFFERING SUMMARY Price Cap Rate Net Operating Income Occupancy Year Built Gross Leasable Area Lot Size
$6,400,000 6.83% $437,207 94.1% 2013 16,900 SF 2.89 Acres
F I N A N C I A L A N A LY S I S
2
PRICING & FINANCIAL ANALYSIS
M C K INNE Y M AR K E T P LAC E
PROJECTED INCOME & EXPENSES
CURRENT
PSF
EXPENSES
CURRENT
PSF
$100,800
$5.96
$6,780
$0.40
Contract Cleaning
$7,200
$0.43
Extermination
$2,640
$0.16
Base Rent - Occupied Space
94.1%
$448,087
$26.51
Real Estate Taxes
Base Rent - Lease Up Space
5.9%
$0.00
$0.00
Insurance
$448,087
$26.51
CAM
GROSS POTENTIAL RENT Expense Reimbursements Real Estate Taxes
$94,841
$5.61
Insurance
$6,379
$0.38
Waste Removal
$7,620
$0.45
CAM
$54,421
$3.22
Electricity
$6,900
$0.41
Mgmt. Fee
$17,536
$1.04
Water
$11,280
$0.67
Total Expense Reimbursements
$173,178
$10.25
Fire Alarm Monitoring
$3,300
$0.20
GROSS POTENTIAL INCOME
$621,265
$36.76
Landscape Contract
$11,700
$0.69
EFFECTIVE GROSS REVENUE
$621,265
$36.76
R & M Lighting
$3,480
$0.21
R & M Parking Lot
$2,820
$0.17
$900
$0.05
$57,840
$3.42
$18,638
$1.09
$184,058
$10.89
Operating Expenses Real Estate Taxes
R & M Fire Sprinkler
($100,800)
($5.96)
Insurance
($6,780)
($0.40)
Total CAM
CAM
($57,840)
($3.42)
Management Fee
($18,638)
($1.10)
Mgmt. Fee Total Recoverable Expenses Net Operating Income
3.00%
($184,058) $437,207
Total Expenses
3.00%
($10.89) $25.87
F I N A N C I A L A N A LY S I S
3
RE NT RO L L
M C K INNE Y M AR K E T P LAC E
Suite
Tenant
SQ FT
% of SQFT
Start
End
Annual Rent
PSF
Escalation Date
Escalation Amount
Options
Lease Type
100
SOI Brow
1,120
6.6%
2/9/2017
2/28/2027
$30,240
$27.00
3/1/2022
$29.70
2x5
NNN
200
Club Pilates
1,416
8.4%
6/8/2017
6/30/2022
$39,648
$28.00
7/1/2022
$30.00
2x5
NNN
250
Vacant
999
5.9%
-
-
$0
$0.00
-
-
-
-
300
Waterview Dentistry
2,000
11.8%
12/1/2013
12/31/2023
$58,000
$29.00
1/1/2019
$32.00
2x5
NNN
400
Castle Nail Spa
2,800
16.6%
1/21/2014
1/31/2024
$78,400
$28.00
2/1/2019
$30.80
2x5
NNN
500
Peace Love Wax
1,281
7.6%
3/1/2019
2/28/2029
$35,868
$28.00
3/1/2024
$29.40
2x5
NNN
600
Royal Cleaners
1,000
5.9%
3/1/2017
2/28/2022
$28,500
$28.50
3/1/2022
$31.35
3x5
NNN
700
Hollywood Feed
2,520
14.9%
12/6/2014
12/31/2019
$68,040
$27.00
1/1/2020
$29.70
2x5
NNN
700
Hollywood Feed (Expansion)
1,046
6.2%
12/6/2014
12/31/2019
$29,811
$28.50
-
-
-
NNN
850
Legacy Family Chiropractic [1]
1,156
6.8%
9/1/2014
8/31/2024
$31,045
$26.86
9/1/2020
$27.86
1x5
NNN
900
Little Caesars
1,562
9.2%
5/21/2014
5/31/2021
$35,348
$22.63
6/1/2021
$24.20
3x5
NNN
15,901
94.1%
$434,900
$25.73
999
5.9%
16,900
100.0%
Occupied Vacant Total
Lease Notes: [1] Legacy Family Chiropractic - Orginal lease term ends on 8/31/2019. Tenant recently renewed early for an additional 5 years. Rent from 9/1/2018 - 8/31/2020 is $2,587.50 per Month. Base Rent will increase $1 PSF in years 2 and 4 of extended term.
F I N A N C I A L A N A LY S I S
4
ESTIMATED REIMBURSEMENT REVENUE
M C K INNE Y M AR K E T P LAC E
Suite
Tenant
SQ FT
Prorate Share
Annual Taxes
PSF
Annual Insurance
PSF
Annual CAM
PSF
Annual Mgmt. Fee
PSF
Annual Total
PSF
100
SOI Brow
1,120
6.6%
$6,680
$5.96
$449
$0.40
$3,833
$3.42
$1,235
$1.10
$12,198
$10.89
200
Club Pilates
1,416
8.4%
$8,446
$5.96
$568
$0.40
$4,846
$3.42
$1,562
$1.10
$15,422
$10.89
250
Vacant
999
5.9%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
-
-
300
Waterview Dentistry
2,000
11.8%
$11,929
$5.96
$802
$0.40
$6,845
$3.42
$2,206
$1.10
$21,782
$10.89
400
Castle Nail Spa
2,800
16.6%
$16,701
$5.96
$1,123
$0.40
$9,583
$3.42
$3,088
$1.10
$30,495
$10.89
500
Peace Love Wax
1,281
7.6%
$7,641
$5.96
$514
$0.40
$4,384
$3.42
$1,413
$1.10
$13,951
$10.89
600
Royal Cleaners
1,000
5.9%
$5,964
$5.96
$401
$0.40
$3,422
$3.42
$1,103
$1.10
$10,891
$10.89
700
Hollywood Feed [1]
2,520
14.9%
$15,031
$5.96
$1,011
$0.40
$8,625
$3.42
$2,779
$1.10
$27,445
$10.89
700
Hollywood Feed (Expansion)
1,046
6.2%
$6,239
$5.96
$420
$0.40
$3,580
$3.42
$1,154
$1.10
$11,392
$10.89
850
Legacy Family Chiropractic [2]
1,156
6.8%
$6,895
$5.96
$464
$0.40
$3,956
$3.42
$1,275
$1.10
$12,590
$10.89
900
Little Caesars
1,562
9.2%
$9,317
$5.96
$627
$0.40
$5,346
$3.42
$1,723
$1.10
$17,012
$10.89
15,901
94.1%
$94,841
$5.61
$6,379
$0.38
$54,421
$3.22
$17,536
$1.04
$173,178
$10.25
999
5.9%
16,900
100.0%
Occupied Vacant Total
Reimbursement Notes: [1] Hollywood Feed has a 5% Non-Cumulative Annual CAM Cap [2] Legacy Family Chiropractic - Management Fee cannot Exceed 7%
F I N A N C I A L A N A LY S I S
5
TE NA NT INF ORMAT I ON
M C K INNE Y M AR K E T P LAC E
DBA
Hollywood Feed
Entity on Lease
Hollywood Feed, LLC
Corporate/Franchise
Corporate
Locations
70+
Credit Rating
Not Rated
Public/Private
Private
Line of Business
In the 1950s, Hollywood Feed opened their first pet supply store on the corner of Hollywood Street and Chelsea Avenue in Memphis, Tennessee. Hollywood Feed was known for friendly and knowledgeable service then, and they are still dedicated to superior customer service over fifty years later. The company now has locations in 10 states, with new locations opening each year.
DBA
Little Caesars Pizza
Entity on Lease
Larry W Collins, Inc.
Corporate/Franchise
Franchise
Locations
4,560+
Credit Rating
Not Rated
Public/Private
Private
Line of Business
Little Caesar Enterprises Inc. (doing business as Little Caesars) is the third-largest pizza chain in the United States, behind Pizza Hut and Domino’s Pizza. It operates and franchises pizza restaurants in the United States and internationally in Asia, the Middle East, Australia, Canada, Latin America and the Caribbean. Little Caesars specializes in a variety of pizzas. Several core menu items are part of the HOT-N-READY menu, designed to make popular items available for immediate carry-out, while others are made to order and customizable using an assortment of toppings, which vary by store.
DBA
Club Pilates
Entity on Lease
JMHSM, LLC
Corporate/Franchise
Franchise
Locations
380+
Credit Rating
Not Rated
Public/Private
Private
Line of Business
Pure to Joseph Pilates’ original Reformer-based Contrology Method, but modernized with group practice and expanded state-of-the-art equipment, Club Pilates offers high-quality, life-changing training at a surprisingly affordable price. Started in San Diego in 2007, Club Pilates has expanded across the nation, bringing Pilates to hundreds of thousands of people.
PROPERTY DESCRIPTION
6
I N VE S TMENT HI GHLI GHT S
• Grocery Shadow Anchored - Sprouts (NASDAQ) & Adjacent to LA Fitness
M C K INNE Y M AR K E T P LAC E
-
SFM
• 94% Leased NNN Retail Center with 4 Points of Access from 2 Main Thoroughfares • Strategically Located at Signalized Intersection in Affluent North Dallas Suburb of McKinney, TX • Average Household Income in a 3 Mile Radius is $133,967 - Almost 2x the National Average • High Growth Area - The Population in a 3 Mile Radius of the Property Grew 54% Over The Last 10 Years and is Expected to Grow Another 16% in the Next 5 Years • Strong Complimentary Mix of National, Regional and Local Tenants with Average Suite Size of 1,600 Sqft & Staggered Lease Turnover • Surrounding National Retailers Include CVS Pharmacy, Kroger Marketplace, Tom Thumb, Home Depot, McDonalds, Starbucks, LA Fitness, Chase Bank, Walgreens, and Many More • McKinney Ranked #1 Best Place to Live in Nation by Money Magazine PROPERTY DESCRIPTION
7
S I T E PL A N
M C K INNE Y M AR K E T P LAC E
Little Caesars
Legacy Chiropractic
Virginia Pkwy
Royal Cleaners Peace Love Wax
Waterview Dentistry AVAILABLE Club Pilates
Custer Rd
Castle Nails
SOI Brow
PROPERTY DESCRIPTION
8
A E R I AL MA P
M C K INNE Y M AR K E T P LAC E
15,400 VPD
VIRGINIA PKWY
13,492 VPD
CUSTER RD
COIT RD
PROPERTY DESCRIPTION
9
REG IONA L MA P
M C K INNE Y M AR K E T P LAC E
PROPERTY DESCRIPTION
10
LO C AL MA P
M C K INNE Y M AR K E T P LAC E
PROPERTY DESCRIPTION
11
M A R KET S U MMARY
M C K INNE Y M AR K E T P LAC E
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
12
D E M OG RA PHIC STAT I ST I CS
M C K INNE Y M AR K E T P LAC E
1 MILE
3 MILE
5 MILE
15,324 13,416 10,347 14.22% 29.66% 1,513
95,055 81,855 53,072 16.13% 54.23% 8,977
210,627 181,804 121,065 15.85% 50.17% 21,348
10,501 1,605 65 862 12 371 15
63,223 8,490 467 7,256 77 2,341 26
140,425 18,973 1,169 16,101 172 4,964 99
5,166 4,526 3,476 14.14% 30.21% 3,776 750 $122,527 $110,506
31,145 26,859 17,523 15.96% 53.28% 21,967 4,893 $133,967 $117,294
70,842 61,139 40,246 15.87% 51.91% 48,752 12,387 $132,299 $112,839
274 446 521 700 765 738 620 461
1,415 2,416 3,207 3,726 3,853 3,736 4,631 3,875
3,402 5,633 8,635 8,281 8,994 7,875 9,017 9,303
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
13
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