REDBUD CORNERS BROKEN ARROW, OK (TULSA MSA)
PRICING & FINANCIAL ANALYSIS
R E D B U D CO R NE R S
Redbud Corners 2423-2453 W Kenosha St Broken Arrow, OK 74012
OFFERING SUMMARY Price Cap Rate
$4,530,000 8.02%
Net Operating Income
$363,161
Price PSF
$228.68
Occupancy Year Built Gross Leasable Area Lot Size
100.0% 2003 19,809 SF 3.44 Acres
F I N A N C I A L A N A LY S I S
2
PRICING & FINANCIAL ANALYSIS
R E D B U D CO R NE R S
PROJECTED INCOME & EXPENSES Base Rent - Occupied Space
CURRENT 100%
GROSS POTENTIAL RENT
PSF
EXPENSES
$365,059
$18.43
Real Estate Taxes
$365,059
$18.43
Insurance
Expense Reimbursements
CURRENT
PSF
$46,709
$2.36
$9,393
$0.47
$2,100
$0.11
$350
$0.02
CAM
CAM Recoveries
$47,839
$2.42
Alarm Monitoring
Management Fee Recoveries
$12,816
$0.65
Alarm Testing
Insurance Recoveries
$9,393
$0.47
Dumpster
$15,325
$0.77
Real Estate Tax Recoveries
$46,709
$2.36
Landscaping
$5,826
$0.29
Total Expense Reimbursements
$116,757
$5.89
Parking Lot - Repairs
$2,806
$0.14
$481,820
$24.32
$675
$0.03
$3,525
$0.18
EFFECTIVE GROSS REVENUE
Parking Lot -Pressure Washing Parking Lot -Sweeping
Operating Expenses $47,839
$2.42
Parking Lot -Trash Pickup
$405
$0.02
$14,718
$0.74
Utilities - Electricity
$3,215
$0.16
$9,393
$0.47
Utilities - Water & Sewer
$13,611
$0.69
$46,709
$2.36
Total CAM
$47,839
$2.42
Total Expenses
$118,659
$5.99
Management Fee
$14,718
$0.74
Net Operating Income
$363,161
$18.33
$118,659
$5.99
Total CAM Management Fee Total Insurance Total Real Estate Taxes
Capitalization Rate Market Debt Service Cash Flow after Debt Service Cash-on-Cash Return
3.1%
Total Expenses
3.1%
8.02% $244,313 $118,848 10.49%
F I N A N C I A L A N A LY S I S
3
RE NT RO L L
Tenant
R E D B U D CO R NE R S
Suite
SQ FT
% of SQFT
Lease Dates
Minimum Rent
Recoveries
Total
Start
End
Annual
Monthly
PSF
Annual
PSF
Revenue
% of Revenue
GameStop
2423A
1,723
8.70%
06/07
06/20
$38,526
$3,211
$22.36
$10,321
$5.99
$48,847
10.14%
Onin Staffing
2423B
1,238
6.25%
07/17
07/20
$19,808
$1,651
$16.00
$7,416
$5.99
$27,224
5.65%
Advance America
2425
1,255
6.34%
02/05
02/22
$23,307
$1,942
$18.57
$7,518
$5.99
$30,824
6.40%
Billy Sims BBQ
2427
2,000
10.10%
10/07
09/20
$36,504
$3,042
$18.25
$11,980
$5.99
$48,484
10.06%
Great Clips [1]
2429
1,240
6.26%
11/04
10/29
$28,520
$2,377
$23.00
$7,428
$5.99
$35,948
7.46%
2435/41
6,193
31.26%
05/17
04/27
$90,194
$7,516
$14.56
$37,097
$5.99
$127,291
26.42%
Shoop Family Dentistry
2443
1,800
9.09%
12/11
02/22
$32,400
$2,700
$18.00
$10,782
$5.99
$43,182
8.96%
Bliss Nail Spa
2449
1,800
9.09%
08/16
01/22
$28,800
$2,400
$16.00
$10,782
$5.99
$39,582
8.22%
Sprint Spectrum
2453
2,560
12.92%
06/04
06/21
$52,480
$4,373
$20.50
$13,433
$5.25
$65,913
13.68%
2453Z
0
0.00%
11/07
11/22
$14,520
$1,210
$0.00
$0
$0.00
$14,520
3.01%
Total Count/GLA
10
19,809
100%
Totals
$365,059
$30,422
$481,816
100.00%
Occupied
10
19,809
100.0%
Available
0
0
0.0%
$18.43
19,809
100.0%
CiCi's Pizza
Bank of America ATM
Total Avg Rent [1]
$116,757
Great Clips - Annual Minimum Rent Reflects rental increase occurring 11/1/2019
F I N A N C I A L A N A LY S I S
4
ESTIMATED REIMBURSEMENT REVENUE Tenant
Suite
SQ FT
R E D B U D CO R NE R S
% of SQFT
CAM
Management Fee
Insurance
Real Estate Taxes
Total Recovery
Monthly
PSF
Monthly
PSF
Monthly
PSF
Monthly
PSF
Monthly
PSF
GameStop
2423A
1,723
8.70%
$347
$2.42
$107
$0.74
$68
$0.47
$339
$2.36
$860
$5.99
Onin Staffing
2423B
1,238
6.25%
$249
$2.42
$77
$0.74
$49
$0.47
$243
$2.36
$618
$5.99
Advance America
2425
1,255
6.34%
$253
$2.42
$78
$0.74
$50
$0.47
$247
$2.36
$626
$5.99
Billy Sims BBQ
2427
2,000
10.10%
$403
$2.42
$124
$0.74
$79
$0.47
$393
$2.36
$998
$5.99
Great Clips
2429
1,240
6.26%
$250
$2.42
$77
$0.74
$49
$0.47
$244
$2.36
$619
$5.99
CiCi's Pizza
2435/41
6,193
31.26%
$1,246
$2.42
$383
$0.74
$245
$0.47
$1,217
$2.36
$3,091
$5.99
Shoop Family Dentistry
2443
1,800
9.09%
$362
$2.42
$111
$0.74
$71
$0.47
$354
$2.36
$899
$5.99
Bliss Nail Spa
2449
1,800
9.09%
$362
$2.42
$111
$0.74
$71
$0.47
$354
$2.36
$899
$5.99
Sprint Spectrum
2453
2,560
12.92%
$515
$2.42
$0
$0.00
$101
$0.47
$503
$2.36
$1,119
$5.25
2453Z
0
0.00%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
19,809
100%
$3,987
Bank of America ATM TOTALS
$1,068
$783
$3,892
$9,730
F I N A N C I A L A N A LY S I S
5
LEASE PROVISIONS
Tenant
Suite
R E D B U D CO R NE R S
SQ FT
Base Rental Increases
Renewal Options
Date
PSF
Options
Date
PSF
User Restrictions & Exclusive Rights
Termination Rights
Sales Reporting
GameStop
2423A
1,723
-
-
1x5
7/1/2020
$23.00
Exclusive right to sell video games and game systems
-
No
Onin Staffing
2423B
1,238
-
-
2x3
8/1/2020 8/1/2023
$17.00 $18.00
Exclusive right to engage in personnel placement & staffing services
-
No
Advance America
2425
1,255
3/1/2020 3/1/2021
19.13 19.70
-
-
-
Exclusive right to engage in the business of check cashing, advancing, or loaning money using a personal check
-
No
Billy Sims BBQ
2427
2,000
10/1/2019
$18.50
1x5
10/1/2020
$19.00
Exclusive right to sell BBQ in the Property
If exclusive is violated Tenant may terminate lease with 30 day notice to LL
No
Great Clips (1)
2429
1,240
11/1/2019 11/1/2024
$23.00 $24.00
1x5
11/1/2029
MKT
Exclusive right to operate a hair salon in the Property
-
Yes, at LL Request
2435/41
6,193
5/1/2022 10/1/2022
$15.28 $15.56
2x5
5/1/2027 5/1/2032
$16.99 $18.29
Exclusive right to operate a restaurant whose main business is the sale of pizza
If exclusive is violated Tenant may terminate lease with 60 day notice to LL
Yes, within 60 days after the end of calendar Year
Shoop Family Dentistry
2443
1,800
-
-
1x5
3/1/2022
MKT
-
-
-
Bliss Nail Spa
2449
1,800
-
-
2x5
2/1/2022 2/1/2027
$17.50 $19.50
-
-
-
Sprint Spectrum
2453
2,560
-
-
1x5
7/1/2021
$21.50
-
-
-
2453Z
0
-
-
-
-
-
Exclusive Right to operate an ATM on the premises
-
No
CiCi's Pizza
Bank of America ATM
TOTAL
19,809
F I N A N C I A L A N A LY S I S
6
TE NA NT INF ORMAT I ON
R E D B U D CO R NE R S
DBA
Game Stop
Entity on Lease
GameStop, Inc.
Corporate/Franchise
Corporate
Locations
7,276
Credit Rating
S&P: BB
Public/Private
NYSE: GME
Line of Business
GameStop Corp. is an American video game, consumer electronics, and wireless services retailer. The company is headquartered in Grapevine, Texas, and operates 7,000+ retail stores worldwide. In addition to retail stores, GameStop also owns Game Informer, a video game magazine; Simply Mac, an Apple products reseller; and Spring Mobile, an AT&T wireless reseller. It also operates Cricket Wireless branded retail stores as an authorized agent.
DBA
Great Clips
Entity on Lease
MEGA Enterprises, LLC
Corporate/Franchise
Franchise
Locations
4,100+
Credit Rating
Not Rated
Public/Private
Private
Line of Business
Great Clips is a salon franchise consisting of over 4,100 locations across the United States and Canada. The company specializes in no-appointment, no-frills salons that provide customers with affordable haircuts. The salons have been noted as a good investment as they are a low-cost franchise with high growth potential.
DBA
Cici’s Pizza
Entity on Lease
Costley Enterprises No. 279, LLC
Corporate/Franchise
Franchise
Locations
500+
Credit Rating
Not Rated
Public/Private
Private
Line of Busines
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.
PROPERTY DESCRIPTION
7
I N VE S TMENT HI GHLI GHT S •
Walmart Supercenter: Redbud Corners is shadow anchored by a high performing Walmart Supercenter. The property adjoins a primary Walmart access point and access drive from Kenosha St. Additionally, the property has clear lineof-sight visibility from all areas of the Walmart parking lot.
•
Major Retail Corridor: Located at the intersection of Kenosha St and Aspen Ave, Redbud Corners is situated within a major retail corridor of Broken Arrow. Along with the Walmart Supercenter, retail trades such as Aldi, Starbucks, McDonald’s, Jack in the Box, McAlister’s Deli, Carl’s Jr., Jimmy John’s, Dollar Tree, Cato Fashions, Payless ShoeSource, Batteries Plus, QDOBA, Taco Bell and Sonic, among others, generate very high levels of consumer traffic in the immediate area.
•
Exceptional Visibility and Access: Positioned adjacent to Kenosha St, Redbud Corners possesses exceptional visibility, as well as the first point of access to the Walmart Supercenter for eastbound Kenosha St traffic.
•
High Growth Trade Area: Since 2010, the trade area surrounding Redbud Corners has experienced population growth of 9.50% within a 3 mile radius of the property. That same area is projected to grow an additional 4.96% over the next 5 years.
•
Outstanding Tenant Longevity: Redbud Corners has seen high tenant retention with approximately 45% of the existing tenancy possessing a tenure of 10 years or more.
•
Broken Arrow: The city of Broken Arrow, OK has the state’s highest education attainment level, the best public school system, a highly educated workforce, and was named one of the most affordable suburbs in the south by Business Week. Broken Arrow is quickly becoming a magnet for high-tech companies, entrepreneurs and innovators. The city’s location near Tulsa International Airport and major transportation routes, business-friendly atmosphere, and cultural amenities make it an attractive option for those looking to enjoy both the relaxed pace of a small town with proximity to a larger city.
R E D B U D CO R NE R S
PROPERTY DESCRIPTION
8
S I T E PL A N
R E D B U D CO R NE R S
W KENOSHA ST
SHOOP FAMILY DENTISTRY
BLISS NAIL SPA
ATM
G
IN
F AF
N
I ON
ST
PROPERTY DESCRIPTION
9
A E R I AL MA P
R E D B U D CO R NE R S
26,211 VPD
W KENOSHA ST
29,718 VPD
SITE
N ELM PL
N ASPEN AVE PROPERTY DESCRIPTION
10
LO C AL MA P
R E D B U D CO R NE R S
PROPERTY DESCRIPTION
11
REG IONA L MA P
R E D B U D CO R NE R S
PROPERTY DESCRIPTION
12
M A R KET S U MMARY
R E D B U D CO R NE R S
Tulsa, OK
OVERVIEW Tulsa is the second-largest city in the state of Oklahoma and 45th-most populous city in the United States. As of July 2016, the city had a population of 413,505 residents. Tulsa is the principal municipality of the Tulsa Metropolitan Area, a region with 991,005 residents in the metropolitan statistical area. The city serves as the county seat of Tulsa County, the most densely populated county in Oklahoma. Situated on the Arkansas River at the foothills of the Ozark Mountains, Tulsa is in the northeastern quadrant of Oklahoma and right in the heart of “Green Country.” Tulsa was settled between 1828 and 1836 by the Lochapoka Band of Creek Native American tribe. For most of the 20th century, the city held the nickname “Oil Capital of the World” and played a major role as one of the most important hubs for the American oil industry. The United States Oil and Gas Association was founded in Tulsa in 1917, Though the oil industry has historically dominated Tulsa’s economy, efforts in economic diversification have created a base in the sectors of aerospace, finance, technology,
Q U I C K S TAT S
telecommunications, and manufacturing. Tulsa has diversified to capitalize on its status as a regional hub. The Tulsa International Airport (TUL) and the Tulsa Port of Catoosa, the nation’s most inland seaport, connect the region with international trade and transportation. An American Airlines maintenance base at Tulsa International Airport is the city’s largest employer and the largest maintenance facility in the world, serving as the airline’s global maintenance and engineering headquarters. Tulsa, one of “America’s Most Livable Communities,” is considered the cultural and arts center of Oklahoma. Tulsa houses two art museums, full-time professional opera and ballet companies, and one of the nation’s largest concentrations of art deco architecture. Tulsa’s culture is influenced by the nearby Southwest, Midwest, and Southern cultural regions, as well as a historical Native American presence. Two institutions of higher education within the city have sports teams at the NCAA Division I level, Oral Roberts University and the University of Tulsa.
PROPERTY DESCRIPTION
13
D E M OG RA PHIC STAT I ST I CS
R E D B U D CO R NE R S
Radius
1 Mile
3 Mile
5 Mile
7,974 7,694 7,589 3.64% 1.38% 633
73,145 69,687 63,639 4.96% 9.50% 6,352
202,223 193,166 178,739 4.69% 8.07% 27,770
5,893 493 389 513 8 398 0
52,916 4,367 3,528 4,939 89 3,849 51
146,213 14,849 10,377 10,700 245 10,782 85
2,866 2,762 2,718 3.77% 1.62% 2,032 730 $86,529 $70,685
27,785 26,416 23,864 5.18% 10.69% 17,446 8,970 $81,591 $65,929
78,707 75,121 69,323 4.77% 8.36% 46,949 28,173 $76,753 $59,906
267 534 700 404 348 210 188 110
3,764 6,020 5,351 3,975 2,800 1,755 1,650 1,102
13,096 18,221 14,891 10,096 7,483 4,451 3,756 3,129
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 2017 Avg Household Income (National Avg - $75,558) 2017 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 2017
PROPERTY DESCRIPTION
14
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