NORTH HILLS VILLAGE HALTOM CITY, TX (DALLAS MSA)
PRICING & FINANCIAL ANALYSIS
NO R T H H ILLS V ILLAG E
North Hills Village 3500-3548 Denton Hwy Haltom City, TX 76117
OFFERING SUMMARY Price Cap Rate Net Operating Income
$3,167,000 8.03% $254,290
Price PSF
$73.14
Occupancy
84.7%
Year Built
1960
Gross Leasable Area
43,299 SF
Lot Size
4.26 Acres
F I N A N C I A L A N A LY S I S
2
PRICING & FINANCIAL ANALYSIS
NO R T H H ILLS V ILLAG E
PROJECTED INCOME & EXPENSES
CURRENT
Base Rent - Occupied Space GROSS POTENTIAL RENT
PSF
EXPENSES
$269,988
$6.24
Real Estate Taxes
$269,988
$6.24
Insurance
Expense Reimbursements
CURRENT
PSF
$85,336
$1.97
$8,952
$0.21
CAM
CAM Recoveries
$56,176
$1.30
Labor & Payroll Exp
$4,755
$0.11
Management Fee Recoveries
$5,108
$0.12
Sweeping & Cleaning
$15,915
$0.37
Insurance Recoveries
$7,574
$0.17
Parking Lot & Maint
$8,640
$0.20
Real Estate Tax Recoveries
$72,160
$1.67
Other Expenses
$2,340
$0.05
Total Expense Reimbursements
$141,019
$3.26
Parking Lights & Poles
$2,500
$0.06
EFFECTIVE GROSS REVENUE
$411,010
$9.49
Utilities
$13,615
$0.31
Total CAM
$47,765
$1.10
$14,667
$0.34
$156,720
$3.62
Operating Expenses Total CAM
$47,765
$1.10
$14,667
$0.34
$8,952
$0.21
$85,336
$1.97
Total Recoverable Expenses
$156,720
$3.62
Net Operating Income
$254,290
$5.87
Management Fee Total Insurance Total Real Estate Taxes
3.60%
Management Fee Total Expenses
3.60%
F I N A N C I A L A N A LY S I S
3
RENT ROLL
Tenant
NO R T H H ILLS V ILLAG E
Suite
SQ FT
% of SQFT
Lease Dates
Minimum Rent
Recoveries
Total
Start
End
Annual
Monthly
PSF
Annual
PSF
Revenue
% of Revenue
Texas Bingo
1
14,400
33.26%
05/19
05/24
$72,000
$6,000
$5.00
$53,026
$3.68
$125,026
30.42%
Rent A Center (Dark)
4
7,000
16.17%
01/05
01/20
$53,130
$4,428
$7.59
$21,427
$3.06
$74,557
18.14%
Cricket Wireless
5
2,000
4.62%
01/14
01/19
$24,000
$2,000
$12.00
$8,059
$4.03
$32,059
7.80%
Available
6
3,672
8.48%
-
-
$0
$0
$0.00
$0
$0.00
$0
0.00%
Available
7
480
1.11%
-
-
$0
$0
$0.00
$0
$0.00
$0
0.00%
Freeway Insurance
8
680
1.57%
05/18
04/21
$10,710
$893
$15.75
$2,893
$4.25
$13,603
3.31%
North Hills Barbers
9
600
1.39%
04/94
03/21
$8,148
$679
$13.58
$2,068
$3.45
$10,216
2.49%
Available
10
1,267
2.93%
-
-
$0
$0
$0.00
$0
$0.00
$0
0.00%
Available
11
1,200
2.77%
-
-
$0
$0
$0.00
$0
$0.00
$0
0.00%
Dollar Tree
2/3
12,000
27.71%
03/10
02/20
$102,000
$8,500
$8.50
$53,547
$4.46
$155,547
37.85%
Total Count/GLA
10
43,299
100%
$269,988
$22,499
$411,007
100.00%
Occupied
6
36,680
84.7%
Available
4
6,619
15.3%
$7.36
36,680
100.0%
Total Avg Rent
$141,019
F I N A N C I A L A N A LY S I S
4
ESTIMATED REIMBURSEMENT REVENUE
Tenant
Suite
SQ FT
NO R T H H ILLS V ILLAG E
% of SQFT
CAM
Management Fee
Insurance
Real Estate Taxes
Total Recovery
Monthly
PSF
Monthly
PSF
Monthly
PSF
Monthly
PSF
Monthly
PSF
Texas Bingo
1
14,400
33.26%
$1,399
$1.17
$406
$0.34
$248
$0.21
$2,365
$1.97
$4,419
$3.68
Rent A Center (Dark)
4
7,000
16.17%
$529
$0.91
$0
$0.00
$117
$0.20
$1,139
$1.95
$1,786
$3.06
Cricket Wireless
5
2,000
4.62%
$312
$1.87
$0
$0.00
$34
$0.21
$325
$1.95
$672
$4.03
Available
6
3,672
8.48%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
Available
7
480
1.11%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
Freeway Insurance
8
680
1.57%
$75
$1.32
$19
$0.34
$14
$0.25
$133
$2.34
$241
$4.25
North Hills Barbers
9
600
1.39%
$63
$1.27
$0
$0.00
$10
$0.21
$99
$1.97
$172
$3.45
Available
10
1,267
2.93%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
Available
11
1,200
2.77%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
2/3
12,000
27.71%
$2,303
$2.30
$0
$0.00
$207
$0.21
$1,953
$1.95
$4,462
$4.46
43,299
100%
$4,681
Dollar Tree TOTALS
$426
$631
$6,013
$11,752
F I N A N C I A L A N A LY S I S
5
LEASE PROVISIONS
Tenant
Suite
NO R T H H ILLS V ILLAG E
SQ FT
Base Rental Increases
User Restrictions & Exclusive Rights
Renewal Options
Date
PSF
Options
Date
PSF
Sales Reporting
Texas Bingo
1
14,400
-
-
None
-
-
Rent A Center (Dark)
4
7,000
-
-
-
-
-
Exclusive use to operate as a business selling rent-to-own furniture, electronics, and appliances store
N/A
Cricket Wireless
5
2,000
-
-
None
-
-
Exclusive use for the sale of new and refurbished wireless devices and associated accessories and nocontract wireless plans
No
Available
6
3,672
-
-
-
-
-
-
-
Available
7
480
-
-
-
-
-
-
-
Freeway Insurance
8
680
-
-
None
-
-
Exclusive use as a retail Insurance Sales Agency
North Hills Barbers
9
600
4/1/2019 4/1/2020
$13.85 $14.13
None
-
-
Available
10
1,267
-
-
-
-
-
-
-
Available
11
1,200
-
-
-
-
-
-
-
2/3
12,000
-
-
3x5
3/1/2020 3/1/2025 3/1/2030
$9.00 $9.50 $10.50
Dollar Tree
TOTAL
No
No No
None
Exclusive use for the operation of a retail store using the words "Family" or "General" in combination with "Dollar" in its trade name or to a tenant whose primary use shall be the operation of a general merchandise retail variety store where the price is the same or substantially the same general price point as Tenant (herein "Competing Tenant").
Yes
43,299
F I N A N C I A L A N A LY S I S
6
TE NA NT INF ORMAT I ON
NO R T H H ILLS V ILLAG E
DBA
Dollar Tree
Entity on Lease
Dollar Tree Stores, Inc
Corporate/Franchise
Corporate
Locations
14,835+
Credit Rating
BBB-
Public/Private
NASDAQ: DLTR
Line of Business
Dollar Tree is the largest and most successful single-price-point retailer in North America. In June 2015, Dollar Tree acquired Family Dollar Stores, Inc. and its’ more than 8,200 stores, which made Dollar Tree Inc, leading operator of discount variety retail stores with 13,600 locations. Today, they now operate over 14,900 locations across the US.
PROPERTY DESCRIPTION
7
I N VE S TMENT HI GHLI GHT S
NO R T H H ILLS V ILLAG E
Upside: The one dark tenant, Rent-A-Center, has a near term expiration creating a significant value add opportunity. High Growth Trade Area: The population has increased 10.9% within five miles of North Hills Village since 2010 and is expected to grow an additional 7.55% in the next five years. All Spaces are Highly Visible: The Property is situated close to Denton Hwy and includes a highly visible pole sign. High Traffic Counts: North Hills Village has an above average traffic count of 21,640 cars per day along Denton Hwy. Surrounding Trade Area: National retailers in the immediate area of the Property include Kroger, CVS Pharmacy, Planet Fitness, Sonic, Taco Bell, McDonald’s, Big Lots, ALDI, Dollar General, GameStop, Subway, Walmart Neighborhood Market and Many More Exceptional Demographics: The Property benefits from above average demographics with an average household income of $70,200 within a 5-mile radius. Within a three mile radius of the Property there are 79,315 residents increasing to an astounding 260,853 residents within five miles. Over the next five years, the population within a five mile radius is expected to grow an additional 7.55%.
PROPERTY DESCRIPTION
8
S I T E PL A N
Vacant (Rent A Center)
Vacant
Vacant
Vacant
Vacant
NO R T H H ILLS V ILLAG E
Texas Bingo
North Hills Freeway Barber Insurance
PROPERTY DESCRIPTION
9
A E R I AL MA P
NO R T H H ILLS V ILLAG E
DIAMOND OAKS COUNTRY CLUB
21,640 VPD DENTON HWY
SMITH ELEMENTARY SCHOOL
HALTOM MIDDLE SCHOOL
PROPERTY DESCRIPTION
10
L E A SE COMPA RABLES
Property
NO R T H H ILLS V ILLAG E
GLA
Yr Built/ Renovated Occupancy
Major Tenants
Available SF
Rental Rates
NNN
North Hills Village ï‚« 3500 Denton Hwy Haltom City, TX
43,299
1960
84.7%
Dollar Tree, Texas Bingo, North Hills Barbers, Baja Auto Insurance
6,619
$8.00 - $15.00
$2.66
Haltom Commons 1 3304-3318 Denton Hwy Haltom City, TX 76117
155,857
1980
47.8%
Kroger, Planet Fitness
81,284
$7.00 - $18.00
$2.30
Haltom Village Center 2 4613 Denton Hwy Haltom City, TX
17,000
1997
60.0%
Hoffbrau Steak House, Ku's Sushi, State Farm, Sheer Cuts
6,800
$15.00 - $18.00
$6.00
3529 Denton Hwy. Haltom City, TX 76117
6,000
1986
100.0%
Metro PCS, Happy Nails, Melinda's Place
0
$14.00 - $17.00
$3.27
150,593
1990
64.9%
Big Lots, ACE Hardware, ALDI, GameStop, Pizza Hut, Metro PCS, H&R Block, Boost Mobile
52,893
$7.00-$20.00
$4.00
3
Haltom Plaza Shopping Center 4 3183 Denton Hwy Haltom City, TX
PROPERTY DESCRIPTION
11
L E A SE COMPA RABLES
NO R T H H ILLS V ILLAG E
North Hills Village
1
Haltom Commons
2
Haltom Village Center
3
3529 Denton Hwy
4
Haltom Plaza Shopping Center
2
3
1 4
PROPERTY DESCRIPTION
12
LO C AL MA P
NO R T H H ILLS V ILLAG E
North Hills Village
PROPERTY DESCRIPTION
13
REG IONA L MA P
NO R T H H ILLS V ILLAG E
North Hills Village
PROPERTY DESCRIPTION
14
M A R KET S U MMARY
NO R T H H ILLS V ILLAG 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
15
D E M OG RA PHIC STAT I ST I CS
NO R T H H ILLS V ILLAG E
1 MILE
3 MILE
5 MILE
13,890 12,972 12,045 7.08% 7.70% 5,154
84,982 79,315 73,374 7.14% 8.10% 30,378
280,542 260,853 235,223 7.55% 10.90% 91,033
11,343 433 197 676 33 290 20
66,577 3,839 1,076 5,680 255 1,888 35
205,853 29,568 2,727 15,504 660 6,542 136
4,971 4,648 4,329 6.95% 7.37% 2,970 1,677 $62,763 $46,195
31,107 29,076 27,019 6.99% 7.61% 16,595 12,481 $64,711 $51,607
102,315 95,209 85,833 7.46% 10.92% 55,170 40,040 $70,200 $55,815
1,041 1,441 874 587 301 158 104 143
5,720 8,309 6,643 3,765 1,853 1,175 887 723
16,984 24,828 21,202 12,952 8,357 4,217 3,857 2,812
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
16
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