Pioneer Plaza - Mesquite, TX by STRIVE

PIONEER PLAZA MESQUITE, TX

PRICING & FINANCIAL ANALYSIS

PIONEER PLAZA

FINANCIAL ANALYSIS

Pioneer Plaza 1200 E Davis St Mesquite, TX 75149

Offering Summary Price Cap Rate Net Operating Income Price PSF Occupancy Gross Leasable Area Lot Size

8.19% $406,110 $96.52 84.8% 1994/2000

PROPERTY DESCRIPTION

Year Built/Year Renovated

$4,960,000

51,390 SF 4.88 Acres

MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Â© 2017 STRIVE

PRICING & FINANCIAL ANALYSIS

PIONEER PLAZA

PSF

Expenses

84.8%

$527,755

$12.11

Real Estate Taxes

$527,755

$10.27

Real Estate Tax Reimb.

$31,454

$0.61

Insurance Reimb.

$11,199

$0.22

CAM Reimb.

$32,606

$0.63

Mgmt./Admin. Fee Reimb.

$8,608

$0.17

Total Expense Reimbursements

$83,867

$1.63

$611,623

$11.90

$0.00

$611,623

$11.90

($75,171)

($1.46)

Insurance

($27,849)

($0.54)

CAM

($81,085)

($1.58)

($21,407)

($0.42)

($205,512)

($4.00)

$406,110

$7.90

Base Rent - Occupied Space Base Rent - Vacant Space GROSS POTENTIAL RENT Expense Reimbursements

Vacancy Factor

0.00%

EFFECTIVE GROSS REVENUE

PSF

$75,171

$1.46

$27,849

$0.54

Maintenance

$22,803

$0.44

Repairs (Plumbing/Roof/AC/Parking lot)

$19,309

$0.38

Utilities

$38,973

$0.76

Total CAM

$81,085

$1.58

$21,407

$0.42

$205,512

$4.00

Insurance CAM

Management Fee (% of GPI)

TOTAL EXPENSES

3.50%

PROPERTY DESCRIPTION

GROSS POTENTIAL REVENUE

Current

FINANCIAL ANALYSIS

Current

Income & Expenses

Expenses Real Estate Taxes

Mgmt. Fee (% of GPI) Total Expenses

NET OPERATING INCOME

3.50%

RENT ROLL

PIONEER PLAZA Sq Ft

% of Sq Ft

Start

End

Annual Rent

PSF

Escalation Escalation Date Amount

Lease Type

Opti-

101A

Vacant

1,100

2.1%

101B

Liberty Tax Service

1,700

3.3%

12/1/2017

4/30/2021

$17,000

$10.00

NNN

104 & 105

Boomer Jack Wings

2,975

5.8%

11/1/2003

9/30/2020

$41,650

$14.00

NNN

103

Major League Driving School

1,475

2.9%

8/1/2008

6/30/2018

$19,200

$13.02

N-BY 2008

106

Smile Donut Shop

1,300

2.5%

11/1/1999

5/31/2020

$19,900

$15.31

6/1/2018

$15.69

NN-BY 2005

1x5

107

Mesquite Laundromat

2,650

5.2%

2/1/2018

7/31/2022

$21,200

$8.00

8/1/2022

MKT

NNN

1x5

108

Real Mexican Tacos

2,550

5.0%

2/15/2015

6/30/2021

$24,996

$9.80

7/1/2017

$10.54

NNN

1x5

111

Golden Era Barbershop

1,300

2.5%

10/1/2015

9/30/2018

$15,600

$12.00

10/1/2018

MKT

NNN

1x3

113

Total Care Family Practice

1,300

2.5%

4/1/2013

12/31/2020

$20,200

$15.54

1/1/2018

$15.92

Gross

114

Best Buy Smokes

1,300

2.5%

4/1/2016

3/31/2021

$21,600

$16.62

4/1/2021

MKT

NNN-BY 2016

1x3

115

Parcel Express

1,300

2.5%

1/1/2001

9/30/2020

$19,800

$15.23

10/1/2019

MKT

N-BY 2016

1x3

116

Burger Style Café

2,600

5.1%

3/1/2016

2/28/2021

$42,000

$16.15

3/1/2021

MKT

Gross

1x5

117

Martial Arts

2,600

5.1%

6/1/2017

5/31/2020

$31,200

$12.00

6/1/2019

$12.46

Gross

1x3

119

Grand Sun Massage

1,300

2.5%

9/1/2017

8/31/2020

$15,600

$12.00

9/1/2019

$12.50

NNN

1x3

120

Nail Time Salon

1,300

2.5%

12/1/2017

11/30/2020

$20,400

$15.69

12/1/2020

MKT

Gross

1x3

122 & 124

First Cici's Pizza

8,247

16.0%

12/1/1993

10/31/2019

$93,000

$11.28

11/1/2019

MKT

Gross

1x5

125, 126, 127

Vacant

6,703

13.0%

128

Maria Bonita Beauty Salon

860

1.7%

5/30/2014

6/30/2019

$10,470

$12.17

7/1/2017

$12.87

NNN

1x3

130

Anytime Fitness

6,080

11.8%

2/1/2016

1/31/2021

$48,640

$8.00

2/1/2021

MKT

NNN

2x5

132

Cellular USA/Metro PCS

1,500

2.9%

6/1/2006

10/31/2019

$22,800

$15.20

11/1/2019

MKT

Gross

1x5

134

Subway

1,250

2.4%

7/1/2001

6/30/2021

$22,500

$18.00

7/1/2021

MKT

NNN

1x5

Occupied

43,587

84.8%

$527,755

$10.27

Vacant

7,803

15.2%

Total

51,390

100.0%

ons

PROPERTY DESCRIPTION

Tenant

FINANCIAL ANALYSIS

Suite

MARKET OVERVIEW

Lease Notes: 1. Anytime Fitness - 2 x 5 year Options at MKT rent but not to exceed and $0.25 Increase from the prior year rent.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

TENANT INFORMATION

PIONEER PLAZA

FINANCIAL ANALYSIS

Tenant Overview Tenant Anytime Fitness is a 24-hour health and fitness club with over 3,000 franchised locations in 20 countries. The facilities are open 24-hours a day, 265 days a year. According to Forbes, Anytime Fitness was the fastest growing health club franchise in 2014. In 2015, Entrepreneur Magazine ranked Anytime Fitness first on its global franchise list.

Anytime Fitness

Ownership

Private

Number of Locations

3,000+

Years In Business Headquarters Website

15 Years Woodbury, Minnesota www.anytimefitness.com

PROPERTY DESCRIPTION

Tenant Overview Tenant Cicis is an American buffet restaurant chain headquartered in Plano, Texas. In 2015, the company began a new marketing campaign, dropping the “Pizza” and renaming the company to just Cicis. The campaign is aimed at proving Cicis offers more than just pizza. Cicis currently has more than 500 franchised and corporately owned restaurants in 35 states.

Ownership Number of Locations Years In Business Headquarters Website

Cici’s Pizza Private 500+ 32 Years Plano, TX www.cicis.com

Tenant Overview Ownership

Subway Private

Number of Locations

44,000+

Years In Business

49 Years

Headquarters Website

MARKET OVERVIEW

Tenant Subway IP Inc. is a privately held American fast food restaurant franchise that primarily sells submarine sandwiches (subs) and salads. It is owned and operated by Doctor’s Associates Inc., doing business as Subway IP Inc. Subway is one of the fastest growing franchises in the world, with 44,852 restaurants in 112 countries and territories as of September 11, 2016. The United States alone has 26,646 outlets. It is the largest single-brand restaurant chain and the largest restaurant operator in the world.

Milford, CT www.subway.com

INVESTMENT HIGHLIGHTS

PIONEER PLAZA

FINANCIAL ANALYSIS

• Neighborhood Center With Leasing Upside Currently 84.8% Occupied • Value Add Potential – Below Market Rents & Ability to Convert All Leases to NNN • Priced Below Replacement Cost - $96 psf • Complementary Mix of National, Regional and Local Tenants with Staggered Lease Turnover

PROPERTY DESCRIPTION

• Average Suite Size is 2,200 sqft with Average Rents Between $12-16 psf (Replaceable) • Close Proximity to Mesquite High School (2,800+ Students) & Adjacent to The Learning Center – Mesquite ISD • Surrounding Retailers Include Walgreens, CVS, H&R Block, Wells Fargo, Kroger, Sonic and Many More

MARKET OVERVIEW

• Population in 5-Mile Radius Exceed 200,600 People - Close to 9% Growth in Last Several Years • Average Household Income in 1 Mile is More Than $77,000 • Traffic Counts on E Davis Street Exceed 19,700 Vehicles Per Day This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

SITE PLAN

PIONEER PLAZA

FINANCIAL ANALYSIS PROPERTY DESCRIPTION MARKET OVERVIEW This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. ÂŠ 2017 STRIVE

AERIAL MAP

PIONEER PLAZA

FINANCIAL ANALYSIS PROPERTY DESCRIPTION

Mesquite Independent School

Pep Boys Distribution Center

MARKET OVERVIEW

Mesquite High School

LOCAL MAP

PIONEER PLAZA

REGIONAL MAP

PIONEER PLAZA

MARKET SUMMARY

PIONEER PLAZA

FINANCIAL ANALYSIS PROPERTY DESCRIPTION

DALLAS, TX

The city of Dallas has 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. 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 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 20. 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.

MARKET OVERVIEW

The city of Mesquite is a suburb located east of Dallas, Texas. Most of the city is located in Dallas County. As of the 2015 census, the population was 144,788 making it the twentieth most populous city in the state of Texas. Mesquite is positioned in the crossroads of four major highways, (Interstate 30, 635, 20 and U.S. Highway 80), making places such as; Downtown Dallas, Lake Ray Hubbard, Dallas Love Field and DFW International airports, accessible. The DFW 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.

DEMOGRAPHIC STATISTICS

PIONEER PLAZA 1 Mile

3 Mile

5 Mile

14,489 13,793 13,236 5.05% 4.21% 3,731

79,788 75,896 72,508 5.13% 4.67% 23,102

206,896 195,479 179,297 5.84% 9.03% 77,286

9,849 2,618 119 839 12 356 0

50,613 18,910 781 3,806 105 1,682 22

132,636 48,678 2,583 7,463 207 3,912 90

4,756 4,527 4,340 5.06% 4.31% 3,606 921 $77,982 $65,441

26,217 24,929 23,782 5.17% 4.82% 17,716 7,213 $73,358 $60,382

67,452 63,696 58,290 5.90% 9.27% 40,517 23,179 $63,489 $49,791

847 874 893 531 688 299 282 113

4,441 5,952 5,321 3,225 2,696 1,329 1,310 654

14,638 17,349 12,812 7,809 5,346 2,203 2,351 1,188

FINANCIAL ANALYSIS

Radius Population: 2022 Projection 2017 Estimate 2010 Census Growth 2017-2022 Growth 2010-2017 2017 Population Hispanic Origin

2017 Population by Race:

Households:

2022 Projection 2017 Estimate 2010 Census Growth 2017 - 2022 Growth 2010 - 2017 Owner Occupied Renter Occupied 2017 Avg Household Income (National Avg - $75,558) 2017 Med Household Income (National Med - $53,889)

2017 Households by Household Inc:

MARKET OVERVIEW

<$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+

PROPERTY DESCRIPTION

White Black Am. Indian & Alaskan Asian Hawaiian & Pacific Island Other U.S. Armed Forces:

Demographic data © CoStar 2017 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE

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.

Approved by the Texas Real Estate Commission for Voluntary Use Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

Information About Brokerage Services

efore working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner’s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer’s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly. IF THE BROKER REPRESENTS THE OWNER: The broker becomes the owner’s agent by entering into an agreement with the owner, usually through a written - listing agreement, or by agreeing to act as a subagent by accepting an offer of subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner’s agent anything the buyer would not want the owner to know because an owner’s agent must disclose to the owner any material information known to the agent. IF THE BROKER REPRESENTS THE BUYER: The broker becomes the buyer’s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer’s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer’s agent anything the owner would not want the buyer to know because a buyer’s agent must disclose to the buyer any material information known to the agent. IF THE BROKER ACTS AS AN INTERMEDIARY: A broker may act as an intermediary between the parties if the broker complies with The Texas Real Estate License Act. The broker must obtain

the written consent of each party to the transaction to act as an intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermediary in a transaction: (1) shall treat all parties honestly; (2) may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner; (3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and (4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property. With the parties’ consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party. If you choose to have a broker represent you, you should enter into a written agreement with the broker that clearly establishes the broker’s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding.

Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records.

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