Sam Moon Center - Frisco, TX

Page 1

SAM MOON CENTER FRISCO, TX (DFW MSA)


PRI CING & F INAN CI AL AN ALYSI S

SAM M O O N C E NT E R - F R ISCO, T X

Sam Moon Center 2429-2469 Preston Rd Frisco, TX 75034

OFFERING SUMMARY Price Cap Rate

$10,500,000 6.42%

Net Operating Income

$674,183

Price PSF

$273.75

Occupancy

100.0%

Year Built

2002

Gross Leasable Area

38,356 SF

Lot Size

3.66 Acres

F I N A N C I A L A N A LY S I S

2


PRI CING & F INAN CI AL AN ALYSI S

PROJECTED INCOME & EXPENSES Base Rent - Occupied Space

100%

GROSS POTENTIAL RENT

SAM M O O N C E NT E R - F R ISCO, T X

CURRENT

PSF

EXPENSES

CURRENT

PSF

$674,182

$17.58

Real Estate Taxes

$187,234

$4.88

$674,182

$17.58

Insurance

$25,000

$0.65

CAM

Expense Reimbursements Real Estate Tax Recoveries

$187,694

$4.89

Fire Alarm

$1,217

$0.03

Insurance Recoveries

$21,072

$0.55

Landscape

$32,053

$0.84

CAM Recoveries

$90,814

$2.37

R&M

$3,675

$0.10

Management Recoveries

$35,318

$0.92

Pest Control

$1,064

$0.03

Total Expense Reimbursements

$334,897

$8.73

Waste

$1,759

$0.05

EFFECTIVE GROSS REVENUE

$1,009,080

$26.31

Water

$42,208

$1.10

Electricity

$8,838

$0.23

$90,814

$2.37

$35,318

$0.92

$334,896

$8.73

Operating Expenses Total Real Estate Taxes

$187,694

$4.89

Total CAM

Total Insurance

$21,072

$0.55

Management Fee

Total CAM

$90,814

$2.37

Total Expenses

$35,318

$0.92

Total Recoverable Expenses

$334,896

$8.73

Net Operating Income

$674,183

$17.58

Management Fee

3.50%

3.50%

For Financing Options, Please Contact: Greg Holley | Managing Partner High St Capital (O) 469-998-7200 | (C) 714.514.2990 gholley@highstcapital.com

F I N A N C I A L A N A LY S I S

3


RE NT RO L L

Tenant

SAM M O O N C E NT E R - F R ISCO, T X

Suite

SQ FT

% of SQFT

Lease Dates

Minimum Rent

Recoveries

Total

Start

End

Annual

Monthly

PSF

Annual

PSF

Revenue

% of Revenue

A2B Sweets and Restaurant

100

3,953

10.31%

07/16

07/26

$134,402

$11,200

$34.00

$34,515

$8.73

$168,917

16.74%

Desi Café

200

1,600

4.17%

05/23

11/28

$38,400

$3,200

$24.00

$13,970

$8.73

$52,370

5.19%

Simply Spice Caterers

300

2,441

6.36%

06/19

01/25

$49,734

$4,144

$20.37

$21,313

$8.73

$71,047

7.04%

Love That Door

400

2,382

6.21%

04/18

07/24

$49,223

$4,102

$20.66

$20,798

$8.73

$70,021

6.94%

Sam Moon Trading

500

18,518

48.28%

06/04

05/29

$259,252

$21,604

$14.00

$161,686

$8.73

$420,938

41.72%

Sam Moon Luggage

510

5,987

15.61%

06/04

05/29

$83,818

$6,985

$14.00

$52,274

$8.73

$136,092

13.49%

Aabharan By Mallika

600

3,475

9.06%

11/22

03/26

$59,353

$4,946

$17.08

$30,341

$8.73

$89,694

8.89%

Total Count/GLA

7

38,356

100%

Totals

$674,182

$56,182

$1,009,079

100.00%

Occupied

7

38,356

100.0%

Available

0

0

0.0%

$17.58

38,356

100.0%

Total Avg Rent

$334,897

F I N A N C I A L A N A LY S I S

4


E S TI MATED REIMBUR SEMEN T R EVEN U E

Tenant

Suite

SQ FT

% of SQFT

SAM M O O N C E NT E R - F R ISCO, T X

Real Estate Taxes

Insurance

CAM

Management Fee

Total Recovery

Monthly

PSF

Monthly

PSF

Monthly

PSF

Monthly

PSF

Monthly

PSF

A2B Sweets and Restaurant

100

3,953

10.31%

$1,612

$4.89

$181

$0.55

$780

$2.37

$303

$0.92

$2,876

$8.73

Desi Café

200

1,600

4.17%

$652

$4.89

$73

$0.55

$316

$2.37

$123

$0.92

$1,164

$8.73

Simply Spice Caterers

300

2,441

6.36%

$995

$4.89

$112

$0.55

$482

$2.37

$187

$0.92

$1,776

$8.73

Love That Door

400

2,382

6.21%

$971

$4.89

$109

$0.55

$470

$2.37

$183

$0.92

$1,733

$8.73

Sam Moon Trading

500

18,518

48.28%

$7,551

$4.89

$848

$0.55

$3,654

$2.37

$1,421

$0.92

$13,474

$8.73

Sam Moon Luggage

510

5,987

15.61%

$2,441

$4.89

$274

$0.55

$1,181

$2.37

$459

$0.92

$4,356

$8.73

Aabharan By Mallika

600

3,475

9.06%

$1,417

$4.89

$159

$0.55

$686

$2.37

$267

$0.92

$2,528

$8.73

38,356

100%

$15,641

Totals

$1,756

$7,568

$2,943

$27,908

F I N A N C I A L A N A LY S I S

5


L E A SE PROVIS ION S

Tenant

SAM M O O N C E NT E R - F R ISCO, T X

Suite

Base Rental Increases

SQ FT

Renewal Options

Date

PSF

Options

Date

PSF

A2B Sweets and Restaurant

100

3,953

-

-

-

-

-

Desi Café

200

1,600

-

-

-

-

-

Simply Spice Caterers

300

2,441

-

-

-

-

-

Love That Door

400

2,382

-

-

1x5

8/1/2024

MKT Rate

Sam Moon Trading

500

18,518

-

-

2x5

6/1/2029 6/1/2034

$14.00 $15.40

Sam Moon Luggage

510

5,987

-

-

2x5

6/1/2029 6/1/2034

$14.00 $15.40

Aabharan By Mallika

600

3,475

-

-

2x3

4/1/2026 4/1/2029

$18.79 $20.67

Totals

F I N A N C I A L A N A LY S I S

6


TE NA NT INF ORMAT I ON

SAM M O O N C E NT E R - F R ISCO, T X

Tenant

Sam Moon Trading Co.

Corporate/Franchise

Corporate

Locations

6 Locations

Public/Private

Private

Line of Business

Sam Moon Trading Co. is a Dallas-based regional wholesaler that specializes in women’s fashion handbags, jewelry and accessories. Founded in 1984 by David and In Sun Moon, Sam Moon quickly became Dallas’ destination for wholesale women’s accessories and handbags. Sam Moon later opened stores to the public in 1994 and now operates six flagship locations throughout Texas.

DBA

Love That Door

Locations

4 Locations

Public/Private

Private

Line of Business

Love That Door looks to perfection as the ultimate pursuit — and our design, manufacturing, delivery, and installation services are no exception. Each wrought iron door is treated with the highest care and given the utmost of our attention. Our quality standards ensure the legacy of your Love That Door product is perfectly maintained to last a lifetime. Our lifetime warranty stands behind that promise.

DBA

A2B Indian Vegetarian Restaurant

Public/Private

Private

Line of Business

We serve delicious vegetarian food made using fresh, quality ingredients catering to a multitude of taste preferences, without burning a hole in your wallet! We’re big on flavour and uncompromising on service, so much so that our restaurants are reckoned to be amongst the best vegetarian restaurants in the country. Our sweets and snacks range from the melt-in-your-mouth Mysorepak from the south, the multi-variety Malaipeda of the North, the mouth-watering Badam Halwa of the East or the timeless dry fruits of the West. Our products are synonymous with traditional taste that you know and love while pioneering in the use of the latest techniques in manufacturing

PROPERTY DESCRIPTION

7


I N VE S TMENT HI GHLI GHT S

100% Leased Neighborhood Retail Center in Dominant Location Pad Site to Stonebriar Centre in Frisco, TX

NNN Leases & Staggered Lease Turnover

Average Base Rents of $17.58/SF are Well Below Market – Small Shop Spaces is Leasing for $35/ SF-$45/SF in Frisco & 5,000-10,000 SF Suites are Leasing for $25/SF +

Situated on the NWC of Preston Rd & Highway 121 – an Intersection that sees Over 186,000 Vehicles per Day

Stonebriar Centre is the #2 Mall in DFW by Sales Volume and Draws Over 20 Million People Annually

Outstanding Demographics – Average Household Income in a 5 Mile Radius is Almost 2X the National Average at $144,000

Booming North Dallas Fort Worth Location – Annual Population Growth of 8.7% in a 1 Mile Radius Since 2010

Frisco is Home for Several Corporate Headquarter Offices Including Dallas Cowboys, Bank of America, PepsiCo, McAfee, Toyota, PGA, Frito-Lay, Hewlitt Packard, Capital One Intuit, Fed Ex & Many More

SAM M O O N C E NT E R - F R ISCO, T X

PROPERTY DESCRIPTION

8


S I T E PL A N

SAM M O O N C E NT E R - F R ISCO, T X

Aabharan by Mallika

Sam Moon Luggage & Gifts

Sam Moon Trading Co

Love That Door

Simply Spice Caterers Desi Cafe

A2B Sweets & Restaurant

PROPERTY DESCRIPTION

9


A E R I AL MA P

SAM M O O N C E NT E R - F R ISCO, T X

30,951 VPD

PRESTON RD

STONEBRIAR CENTRE

FRISCO ROUGHRIDERS STADIUM

SITE

12

S

AM

Y RA

R BU

O NT

V 20 3, 5

PD

Y WA L L

MARKET OVERVIEW

10


A E R I AL MA P

SAM M O O N C E NT E R - F R ISCO, T X

STONEBRIAR CENTRE 20+ MILLION VISITORS PER YEAR

MARKET OVERVIEW

11


LO C AL MA P

SAM M O O N C E NT E R - F R ISCO, T X

MARKET OVERVIEW

12


REG IONA L MA P

SAM M O O N C E NT E R - F R ISCO, T X

MARKET OVERVIEW

13


M A R KET S U MMARY

SAM M O O N C E NT E R - F R ISCO, T X

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 7,573,136 according to the U.S. Census Bureau’s 2019 population estimates. From 2010 to 2019, the DFW Metroplex had the largest numerical population growth of any MSA in the United States. The metropolitan economy is the fourth-largest and third-fastest growing in the United States, with a 2017 real GDP of $535.5 billion. In 2018, Dallas had both the highest job growth rate and the most jobs added in the nation, and is 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 2018, 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 Cooperation and Development. The DFW Metroplex has one of the largest concentrations of corporate headquarters for publicly traded companies in the United States. As of 2020, the city of Dallas has 10 Fortune 500 companies, and the DFW region as a whole has 25. 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

No.

1

4 5th 25

th

10K

Fastest Growing MSA in the U.S. from 2010 to 2019 (U.S. Census Bureau) Largest Metropolitan Area in the United States Fastest Growing Economy in the U.S. (Forbes) Fortune 500 Companies Call DFW Home (American City Business Journals) Home to over 10,000 corporate headquarters, making it the largest concentration in the U.S. MARKET OVERVIEW

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D E M OG RA PHIC STAT I ST I CS

SAM M O O N C E NT E R - F R ISCO, T X

1 Mile

3 Mile

5 Mile

Population

1 Mile

3 Mile

5 Mile

Households:

2010 Population

7,612

83,880

241,666

2010 Households

3,874

33,122

90,596

2023 Population

16,191

110,023

324,729

2023 Households

7,818

44,277

122,234

2028 Population Projection

18,140

119,127

352,008

2028 Household Projection

8,733

48,026

132,586

Annual Growth 2010-2023

8.70%

2.40%

2.60%

Annual Growth 2010-2023

7.20%

2.50%

2.70%

Annual Growth 2023-2028

2.40%

1.70%

1.70%

Annual Growth 2023-2028

2.30%

1.70%

1.70%

Median Age

37.1

38.3

38.7

Owner Occupied

2,460

25,020

84,140

Bachelor's Degree or Higher

68%

62%

60%

Renter Occupied

6,274

23,006

48,447

U.S. Armed Forces

29

213

218

Avg Household Size

2.1

2.5

2.6

Avg Household Vehicles

2

2

2

Total Consumer Spending

$257.3M

$1.7B

$5B

Population by Race White

8,879

64,343

200,346

Black

2,024

10,142

29,394

American Indian/Alaskan Native

101

602

1,674

Avg Household Income

$117,504

$131,489

$144,421

4,624

31,510

83,270

Median Household Income

$103,883

$106,124

$115,919

Hawaiian & Pacific Islander

13

78

257

< $25,000

469

3,463

7,330

Two or More Races

550

3,348

9,787

$25,000 - 50,000

693

5,204

12,992

Hispanic Origin

1,784

13,194

39,004

$50,000 - 75,000

1,228

5,983

15,375

$75,000 - 100,000

1,209

5,994

15,143

Asian

Housing

Income

Median Home Value

$385,684

$411,962

$404,155

$100,000 - 125,000

1,999

6,103

16,140

Median Year Built

2010

2002

2001

$125,000 - 150,000

674

4,149

11,480

$150,000 - 200,000

692

5,449

16,343

$200,000+

855

7,933

27,432

Demographic data © CoStar 2023

MARKET OVERVIEW

15


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 tenant’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: ӽ that the owner will accept a price less than the written asking price; ӽ that the buyer/tenant will pay a price greater than the price submitted in a written offer; and ӽ 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


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