PRESTONWOOD COURT I DALLAS, TX
PRESTONWOOD TOWN CENTER
304,120 VPD
PRICING & FINANCIAL ANALYSIS
P R E STO NWO O D CO U R T I
Prestonwood Court I 15340 Dallas Pkwy Dallas, TX 75248
OFFERING SUMMARY Price Cap Rate Net Operating Income
$10,794,978 7.25% $782,636
Price PSF
$272.13
Occupancy
100.0%
Year Built
1979
Gross Leasable Area
39,668 SF
Lot Size
4.28 Acres
*Prestonwood Court I can also be purchased alongside Prestonwood Court II, please contact Agent for details.
F I N A N C I A L A N A LY S I S
2
I N VE S TMENT HI GHLI GHT S •
Tenant Longevity: Prestonwood Court I has strong longevity as over 47% (by SF in the rent roll) of the tenants in the property have been there for more than 5 years, with Starpower, Jersey Joe’s, and the Menswear store being there for over 20 years. We attribute this to the easy access in and out of the property and the visibility from the North Dallas Tollroad.
•
Below market Rental Rates: The average rental rate at Prestonwood I is only $21.60 psf. Neighboring properties as shown on the lease comparable set in this Offering Memorandum are as high as $45.00 psf and virtually every asset in the competitive set is achieving rents over $30.00 psf.
•
Prime Location: The Property fronts on the Dallas North Tollway, which carries more than 304,000 cars per day. Prestonwood Court is also located in one of the most dynamic locations in DFW, sharing an access road with Prestonwood Town Center and tenants such as Walmart, Best Buy, Ulta Beauty, Michaels, DSW, Office Depot, and many more.
•
Easily Accessible: The Property benefits from 2 points of access off Dallas Parkway, cross access to Arapaho to the north, as well as a cross access road to Prestonwood Town Center, which creates tremendous traffic flow.
•
New Roof: Seller has signed a contract for a roof replacement. They are doing a full tearoff of the existing roof and installing a new 60-millimeter TPO roof system with a 20-year warranty.
•
High Daytime Population: Addison is quickly turning into one of DFW’s main office hubs. Within 5 miles of the Property there are nearly 25,000 businesses that employ over 307,000 employees.
•
Densely Populated Area: The population within a 5-mile radius exceeds 450,000 people. This area has grown in population by more than 22% since 2010 and is expecting an additional 9% growth over the next 5 years. The property also enjoys a high population both at lunch and in the evening. Within one mile of the property, the daytime population is 41,705 and the nighttime population is 21,183. Furthermore, the average household income within 3 miles of the property is $98,871.
•
E-Commerce Resistant Tenant Base: The Property is insulated from the effect of e-commerce due to a mix of tenants and a focus on inperson shopping, service, or dining experience
•
Desirable Trade Area: The Property is located in the heart of the Addison retail hub and benefits from its close proximity to tenants such as Whole foods, AMC Theater, 24 Hour Fitness, Plucker’s Wing Bar, Houston’s, Flying Saucer, Chipotle, AT&T, Whataburger, ChickFil-A, In-N-Out, and many more.
P R E STO NWO O D CO U R T I
PROPERTY DESCRIPTION
3
S I T E PL A N
P R E STO NWO O D CO U R T I
Hot Worx
Mariner Finance
Manolo Salon
Pie Five
Texas Direct Auto
Jersey Joe’s Pinkie Luxe N Deli ail Salon
Hoote n Family Chiropractic
TOWN
Mattre ss Firm
Zio Al ’s Storag e
Zio Al ’s Pizza & Pasta
PREST O
Garian i Mensw ear
Ava Sophia Salon
03 Purity
PRESTONWOOD COURT II*
NWOO D
Men’s T
CENTE
R RD
PRESTONWOOD COURT I
DALLA
S PAR
KWAY
(304,0
00 VP
D)
*Prestonwood Court II can also be purchased alongside Prestonwood Court I PROPERTY DESCRIPTION
4
PRICING & FINANCIAL ANALYSIS
P R E STO NWO O D CO U R T I
PROJECTED INCOME & EXPENSES Base Rent - Occupied Space
CURRENT 100%
GROSS POTENTIAL RENT
PSF
EXPENSES
CURRENT
PSF
$199,093
$5.02
$7,500
$0.19
Electric
$5,100
$0.13
Maintenance/Repairs
$1,500
$0.04
$810,090
$20.42
Real Estate Taxes
$810,090
$20.42
Insurance
Expense Reimbursements
CAM
CAM Recoveries
$54,048
$1.36
$0
$0.00
$7,500
$0.19
Parking Lot/Landscape
$11,200
$0.28
Real Estate Tax Recoveries
$199,093
$5.02
Lighting (Common Area)
$3,000
$0.08
Total Expense Reimbursements
$260,641
$6.57
Sweeping
$5,400
$0.14
$1,070,731
$26.99
Pest Control
$1,680
$0.04
Water/Sewer
$14,000
$0.35
Trash Hauling
$7,500
$0.19
$49,380
$1.24
$32,122
$0.81
$288,095
$7.26
Management Fee Recoveries Insurance Recoveries
EFFECTIVE GROSS REVENUE Operating Expenses Total CAM
$49,380
$1.24
$32,122
$0.81
Total CAM
$7,500
$0.19
Management Fee
$199,093
$5.02
Total Expenses
Total Recoverable Expenses
$288,095
$7.26
Net Operating Income
$782,636
$19.73
Management Fee Total Insurance Total Real Estate Taxes
3.00%
3.00%
F I N A N C I A L A N A LY S I S
5
RE NT RO L L
Tenant
P R E STO NWO O D CO U R T I
Suite
SQ FT
% of SQFT
Lease Dates
Minimum Rent
Recoveries
Total
Start
End
Annual
Monthly
PSF
Annual
PSF
Revenue
% of Revenue
Starpower Home Ent. Syst.
1000
13,147
33.14%
07/12
07/23
$295,803
$24,650
$22.50
$84,432
$6.42
$380,235
35.51%
Zio Al's Pizza
2010
2,000
5.04%
08/15
09/23
$43,000
$3,583
$21.50
$13,495
$6.75
$56,495
5.28%
Hot Nails Too
2070
2,000
5.04%
11/15
10/20
$37,500
$3,125
$18.75
$13,495
$6.75
$50,995
4.76%
Jersey Joe's
2108
1,425
3.59%
01/13
12/22
$32,063
$2,672
$22.50
$9,615
$6.75
$41,678
3.89%
Mattress Firm
2150
5,750
14.50%
04/15
03/20
$115,000
$9,583
$20.00
$38,413
$6.68
$153,413
14.33%
Gariani's Menswear
2313
2,395
6.04%
04/95
12/21
$55,085
$4,590
$23.00
$16,160
$6.75
$71,245
6.65%
Men's T Clinic
2400
2,600
6.55%
04/14
06/19
$55,900
$4,658
$21.50
$17,543
$6.75
$73,443
6.86%
O3Purity
2630
1,111
2.80%
10/13
10/18
$18,887
$1,574
$17.00
$7,496
$6.75
$26,383
2.46%
Dr. Hooten
2740
2,000
5.04%
01/12
04/22
$36,000
$3,000
$18.00
$13,495
$6.75
$49,495
4.62%
Zio Al's Pizza (Storage)
2750
1,029
2.59%
09/17
09/23
$9,055
$755
$8.80
$6,608
$6.42
$15,664
1.46%
Sahar Salons
2020
6,211
15.66%
09/18
08/28
$111,798
$9,317
$18.00
$39,888
$6.42
$151,686
14.17%
Total Count/GLA
11
39,668
100%
$810,090
$67,508
$1,070,731
100.00%
Occupied
11
39,668
100.0%
Available
0
0
0.0%
$20.42
39,668
100.0%
Total Avg Rent
$260,641
F I N A N C I A L A N A LY S I S
6
ESTIMATED REIMBURSEMENT REVENUE
Tenant
Suite
SQ FT
P R E STO NWO O D CO U R T I
% of SQFT
CAM
Insurance
Real Estate Taxes
Total Recovery
Monthly
PSF
Monthly
PSF
Monthly
PSF
Monthly
PSF
Starpower Home Ent. Syst.
1000
13,147
33.14%
$1,330
$1.21
$207
$0.19
$5,499
$5.02
$7,036
$6.42
Zio Al's Pizza
2010
2,000
5.04%
$257
$1.54
$32
$0.19
$836
$5.02
$1,125
$6.75
Hot Nails Too
2070
2,000
5.04%
$257
$1.54
$32
$0.19
$836
$5.02
$1,125
$6.75
Jersey Joe's
2108
1,425
3.59%
$183
$1.54
$22
$0.19
$596
$5.02
$801
$6.75
Mattress Firm
2150
5,750
14.50%
$706
$1.47
$91
$0.19
$2,405
$5.02
$3,201
$6.68
Gariani's Menswear
2313
2,395
6.04%
$307
$1.54
$38
$0.19
$1,002
$5.02
$1,347
$6.75
Men's T Clinic
2400
2,600
6.55%
$334
$1.54
$41
$0.19
$1,087
$5.02
$1,462
$6.75
O3Purity
2630
1,111
2.80%
$143
$1.54
$18
$0.19
$465
$5.02
$625
$6.75
Dr. Hooten
2740
2,000
5.04%
$257
$1.54
$32
$0.19
$836
$5.02
$1,125
$6.75
Zio Al's Pizza (Storage)
2750
1,029
2.59%
$104
$1.21
$16
$0.19
$430
$5.02
$551
$6.42
Sahar Salons
2020
6,211
15.66%
$628
$1.21
$98
$0.19
$2,598
$5.02
$3,324
$6.42
39,668
100%
$4,504
TOTALS
$625
$16,591
$21,720
F I N A N C I A L A N A LY S I S
7
LEASE PROVISIONS
Tenant
P R E STO NWO O D CO U R T I
Suite
SQ FT
Base Rental Increases
User Restrictions & Exclusive Rights
Renewal Options
Date
PSF
Options
Date
PSF
Starpower Home Ent. Syst.
1000
13,147
7/1/2019
$23.50
2x5
8/1/2023 8/1/2028
$25.85 $28.43
Zio Al's Pizza
2010
2,000
1/1/2020 10/1/2021
$22.00 $22.50
1x6
10/1/2023
-
Exclusive use to sell Italian food, pizza, &/or chicken wings
Hot Nails Too
2070
2,000
"11/1/2018 11/1/2019"
$19.00 $19.25
3x5
11/1/2020 11/1/2021 11/1/2022 11/1/2023 11/1/2024
$20.25 $20.50 $20.75 $21.00 $21.25
-
Jersey Joe's
2108
1,425
1/1/2019 1/1/2020 1/1/2021
$23.00 $23.50 $24.00
-
-
-
Mattress Firm
2150
5,750
-
-
3x5
4/1/2020 4/1/2025 4/1/2030
$22.00 $24.20 $26.62
-
Gariani's Menswear
2313
2,395
1/1/2019 1/1/2020
$24.00 $25.00
1x5
1/1/2022
FMV
-
Men's T Clinic
2400
2,600
-
-
1x5
7/1/2019
FMV
-
O3Purity
2630
1,111
-
-
2x5
11/1/2018 11/1/2023
FMV FMV
-
Dr. Hooten
2740
2,000
4/1/2020
$20.00
1x5
5/1/2022
FMV
Zio Al's Pizza (Storage)
2750
1,029
9/1/2018 10/1/2021 10/1/2022
$13.00 $13.50 $14.00
-
-
-
-
Sahar Salons
2020
6,211
1/1/2020 1/1/2023
$19.00 $20.00
2x5
9/1/2028 9/1/2033
FMV FMV
-
TOTAL
Exclusive use to sell home entertainment video & audio products & related services; kitchen appliances
Exclusive right to sell deli-style sandwiches
Right of Refusal to lease option space
39,668
(1) Not to exceed $0.50 of preceeding year (2) Not to Exceed 5% Increase of preceding year
F I N A N C I A L A N A LY S I S
8
TE NA NT INF ORMAT I ON
P R E STO NWO O D CO U R T I
DBA
Starpower
Entity on Lease
Starpower Home Entertainment Systems, Inc.
Corporate/Franchise
Corporate
Locations
4 locations in Texas and Arizona
Credit Rating
Not Rated
Public/Private
Private
Line of Business
Founded in 1995, Starpower was created to provide clients with the finest experience in high-end, custom installations of audio, video, security and electronic automation. Starpower employees are certified to service most major electronics brands and are able to design setups ranging from a simple TV installation to a multi-million dollar media system.
DBA
Mattress Firm
Entity on Lease
Sleep Experts Partners, LP
Corporate/Franchise
Franchise
Locations
3,500 locations in 49 states
Credit Rating
Not Rated
Public/Private
Public: MFRM (NASDAQ)
Line of Business
Mattress Firm Holding Corp. has the largest geographic footprint in the United States among multi-brand mattress retailers. Founded in 1986, it is the nation’s leading specialty bedding retailer with over $3.5 billion in pro forma sales in 2015. Through its brands including Mattress Firm, Sleepy’s and Sleep Train, MFRM offers a broad selection of both traditional and specialty mattresses, bedding accessories and other related products from leading manufacturers, including Serta, Simmons, Tempur-Pedic, Sealy, Stearns & Foster, King Coil and Hampton & Rhodes.
DBA
Men’s T Clinic
Entity on Lease
Men’s T Clinic, LLC
Corporate/Franchise
Corporate
Locations
5 locations across Texas
Credit Rating
Not Rated
Public/Private
Private
Line of Business
Founded by men afflicted with hypogonadism (commonly known as low testosterone, or Low T), the clinic has developed a thorough testosterone replacement therapy program for fast and effective relief. Treatment can range from injection therapy to pharmaceutical gels and creams, with the goal of an increase in physical and mental drive, better moods, increased libido, and a decrease in belly fat.
PROPERTY DESCRIPTION
9
A E R I AL MA P
P R E STO NWO O D CO U R T I AURA PRESTONWOOD 323 UNITS
IMT PRESTONWOOD 438 UNITS
POST ADDISON CIRCLE 1,362 UNITS
RD
VPD ESTANCIA TOWNHOMES 207 UNITS
PRESTONWOOD COURT I
304,120
VPD
DALLA
S PAR
KWAY
00 23,0
ARAPAHO
BELT LINE ROAD
43,400 VPD
PROPERTY DESCRIPTION
10
L E A SE COMPA RABLES
Property Prestonwood Court I 15340 N Dallas Pkwy Addison, TX 75248
P R E STO NWO O D CO U R T I
GLA 39,668
Yr Built/ Renovated Occupancy 1979
100%
Major Tenants Starpower, Men's T Clinic, Mattress Firm, Jersey Joe's Deli, Gariani's Menswear Hopdoddy Burger Bar, Yard House, Plucker's Wing Bar, Social House, Gloria's Latin Cuisine
Available SF
Rental Rates
NNN
0
$17.00 - $23.00
$6.50
0
Inline $28.00-$45.00
$14.00
Village on the Parkway 1 5100 Belt Line Rd Addison, TX 75254
357,318
2007
90.0%
Prestonwood Place 2 5290 Belt Line Rd Addison, TX 75254
133,353
1981
100.0%
Chipolte, Ifratelli Pizza, Addison Café, The Great Outdoors, La Madeleine, Orange Theory Fitness
0
$14.00 - $35.00
$8.50
Addison Walk 3 5000 Belt Line Rd Addison, TX 75254
78,395
1980
96.7%
Buffalo Wild Wings, Starbucks, Freebirds, Cinco Tacos, Kobe Steaks
2,612
$17.00 - $35.00
$11.50
15,368
Inline $28.00 - $32.00
$12.00
Prestonwood Town Center 4 5301 Belt Line Rd Addison, TX 75254
233,377
1985
93.4%
Walmart, ULTA, Barnes & Noble, Best Buy, Office Depot, Michaels, Great Clips, GNC, Massage Envy, The Joint Chiropractic, Sport Clips
Prestonwood Village I 5 5403 Arapaho Rd Dallas, TX 75248
16,730
1979
100.0%
7-Eleven, Comet Cleaners, Busy Body, Pizza Palace, Great Earth Vitamins
0
$20.00 - $30.00
$7.59
Prestonwood Village II 6 15203 Knoll Trail Dr Dallas, TX 75248
38,680
1996
100.0%
The Egg & I, Prestige Credit Union, The Glass House, Domino's
0
$12.00 - $20.00
$8.00
PROPERTY DESCRIPTION
11
L E A SE COMPA RABLES
P R E STO NWO O D CO U R T I
Prestonwood Court I
1
Village on the Parkway
2
Prestonwood Place
3
Addison Walk
4
Prestonwood Town Center
5
Prestonwood Village I
6
Prestonwood Village II
6
5
Prestonwood Court I
4
3
1
2
PROPERTY DESCRIPTION
12
REG IONA L MA P
P R E STO NWO O D CO U R T I
Prestonwood Court I
PROPERTY DESCRIPTION
13
LO C AL MA P
P R E STO NWO O D CO U R T I
Prestonwood Court I
PROPERTY DESCRIPTION
14
M A R KET S U MMARY
P R E STO NWO O D CO U R T I
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
P R E STO NWO O D CO U R T I
1 MILE
3 MILE
5 MILE
20,442 19,237 41,705 16,795 6.26% 14.54% 4,309
150,580 139,629 164,701 120,759 7.84% 15.63% 34,387
459,926 418,877 318,803 342,423 9.80% 22.33% 121,382
13,102 3,687 141 1,784 28 495 35
104,117 19,401 1,097 11,789 128 3,097 99
312,098 55,987 3,655 37,216 390 9,531 221
11,513 10,871 9,715 5.91% 11.90% 1,684 9,187 $81,621 $60,238
69,230 64,657 58,558 7.07% 10.42% 23,994 40,663 $98,871 $67,235
190,986 174,666 148,250 9.34% 17.82% 74,040 100,626 $92,808 $62,791
1,552 2,869 2,257 1,644 1,066 239 482 763
9,155 14,779 11,918 7,798 5,717 3,134 4,164 7,991
28,563 41,631 32,326 19,697 14,025 8,549 11,164 18,711
Population: 2023 Projection 2018 Estimate Daytime Population 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 Med - $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
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