SHILOH CROSSING WALMART SHADOW TYLER, TX
PRI CING & F INAN CI AL AN ALYSI S
SH ILO H C R O SSING
Shiloh Crossing Walmart Shadow 3101 Shiloh Rd Tyler, TX 75707
OFFERING SUMMARY Price Cap Rate
$2,850,000 7.61%
Net Operating Income
$216,916
Price PSF
$209.87
Occupancy Year Built Gross Leasable Area Lot Size
100.0% 2007 13,580 SF 1.40 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 GROSS POTENTIAL RENT
100%
SH ILO H C R O SSING
CURRENT
PSF
$221,810
$16.33
$221,810
$16.33
EXPENSES
CURRENT
PSF
Real Estate Taxes
$30,525
$2.25
Insurance
$8,032
$0.59
CAM
Expense Reimbursements $30,525
$2.25
Landscaping
$7,193
$0.53
Insurance Recoveries
$7,746
$0.57
Pest Control
$433
$0.03
CAM Recoveries
$19,844
$1.46
Repairs and Maintenance
$7,223
$0.53
Management Recoveries
$4,610
$0.34
Trash Services
$3,426
$0.25
$62,725
$4.62
Utilities
$3,044
$0.22
$284,540
$20.95
Total CAM
$21,319
$1.57
Management Fee
$7,747
$0.57
$67,624
$4.98
Real Estate Tax Recoveries
Total Expense Reimbursements EFFECTIVE GROSS REVENUE Operating Expenses Total Real Estate Taxes
$30,525
$2.25
Total Insurance
$8,032
$0.59
Total CAM
$21,319
$1.57
Management Fee
$7,747
$0.57
Total Recoverable Expenses
$67,624
$4.98
Net Operating Income
$216,916
$15.97
Total Expenses
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
SH ILO H C R O SSING
Suite
SQ FT
% of SQFT
Lease Dates
Minimum Rent
Recoveries
Total
Start
End
Annual
Monthly
PSF
Annual
PSF
Revenue
% of Revenue
Verizon
101
2,880
21.21%
01/13
01/23
$53,280
$4,440
$18.50
$14,341
$4.98
$67,621
23.77%
Cato Fashions
107
4,000
29.46%
09/07
01/23
$48,000
$4,000
$12.00
$16,271
$4.07
$64,271
22.59%
Cash Store
113
1,500
11.05%
09/07
11/22
$33,630
$2,803
$22.42
$6,779
$4.52
$40,409
14.20%
Salon
119
1,500
11.05%
10/20
09/25
$22,500
$1,875
$15.00
$7,469
$4.98
$29,969
10.53%
Wash Smart
125
2,500
18.41%
10/09
09/27
$42,500
$3,542
$17.00
$11,889
$4.76
$54,389
19.11%
Topps Pizza
131
1,200
8.84%
06/18
06/23
$21,900
$1,825
$18.25
$5,976
$4.98
$27,876
9.80%
Total Count/GLA
6
13,580
100%
Totals
$221,810
$18,484
Occupied
6
13,580
100.0%
Available
0
0
0.0%
$16.33
13,580
100.0%
Total Avg Rent
$62,725
$284,535 100.00%
Lease Note: Salon tenant is in deferred rent period until 1/1/2021. They will pay double rent from 8/1/2021-9/30/2021.
E S TI MATED REIMBUR SEMEN T R EVEN U E Tenant
Suite
SQ FT
% of SQFT
Real Estate Taxes
Insurance
CAM
Management Fee
Total Recovery
Monthly
PSF
Monthly
PSF
Monthly
PSF
Monthly
PSF
Monthly
PSF
Verizon
101
2,880
21.21%
$539
$2.25
$142
$0.59
$377
$1.57
$137
$0.57
$1,195
$4.98
Cato Fashions
107
4,000
29.46%
$749
$2.25
$173
$0.52
$433
$1.30
$0
$0.00
$1,356
$4.07
Cash Store
113
1,500
11.05%
$281
$2.25
$74
$0.59
$210
$1.68
$0
$0.00
$565
$4.52
Salon
119
1,500
11.05%
$281
$2.25
$74
$0.59
$196
$1.57
$71
$0.57
$622
$4.98
Wash Smart
125
2,500
18.41%
$468
$2.25
$123
$0.59
$280
$1.35
$119
$0.57
$991
$4.76
Topps Pizza
131
1,200
8.84%
$225
$2.25
$59
$0.59
$157
$1.57
$57
$0.57
$498
$4.98
13,580
100%
$2,544
Totals
$646
$1,654
$384
$5,227
F I N A N C I A L A N A LY S I S
4
L E A SE PROVIS ION S
Tenant
SH ILO H C R O SSING
Suite
SQ FT
Base Rental Increases Date
Verizon
Cato Fashions
101
107
2,880
4,000
-
-
Renewal Options
PSF
-
-
Options
-
Date
-
2x5
2/1/2023 2/1/2028
CAM Cap
CAM Cap Description
User Restrictions & Exclusive Rights
Termination Rights
PSF
-
13.00 13.50
-
-
Exclusive right to sell and service cellular phones
Yes
3% noncumulative cap on CAM and Insurance
Yes
Exclusive 5% nonconsumer loan, cumulative cap check cashing, on CAM and money order business
-
Cotenancy clause with Walmart, and may terminate lease if Walmart leaves and is not backfilled within 6 months
Cash Store
113
1,500
-
-
2x5
24.67 12/1/2022 10% 12/1/2027 bump or CPI
Salon
119
1,500
-
-
1x5
10/1/2025
16.50
-
-
-
-
Wash Smart
125
2,500
10/1/2023
17.75
-
-
-
-
-
-
-
Topps Pizza
131
1,200
-
-
-
-
-
-
-
-
-
Totals
-
13,580
F I N A N C I A L A N A LY S I S
5
TE NA NT INF ORMAT I ON
SH ILO H C R O SSING
Tenant
Verizon Wireless
Corporate/Franchise
Franchise
Locations
1,600+ Locations
Public/Private
Public (NYSE: VZ)
Website
verizonwireless.com
Line of Business
Verizon Wireless is an American telecommunications company that offers wireless products and services. It is a division of Verizon Communications. Verizon Wireless is the largest wireless telecommunications provider in the United States, estimated to provide wireless service to 119 million subscribers as of 2020. It operates a national 4G LTE network covering about 98 percent of the U.S. population.
Tenant
Cato Fashions
Corporate/Franchise
Corporate
Locations
1,300+ Locations
Public/Private
Public (NYSE: CATO)
Website
catofashions.com
Line of Business
The Cato Corporation is an American specialty retailer of value-priced women’s fashions and accessories. Headquartered in Charlotte, North Carolina, Cato offers exclusive merchandise with fashion and quality comparable to mall specialty stores at low prices every day. As of 2020, the company operated over 1,300 stores under the names Cato, Cato Plus, It’s Fashion, It’s Fashion Metro and Versona.
Tenant
Cash Store
Corporate/Franchise
Corporate
Locations
340+ Locations
Public/Private
Private
Website
cashstore.com
Line of Business
Cash Store is one of the largest privately held retail consumer finance companies in the United States, providing emergency cash loans to customers. Founded in 1996, Cash Store operates over 340 company-owned locations across the country. Through this national brick-and-mortar footprint, Cash Store is able to offer a mix of financial products and services to its customers.
PROPERTY DESCRIPTION
6
I N VE S TMENT HI GHLI GHT S
SH ILO H C R O SSING
• W almart Shadowed Center: Shadow-anchored to a high-performing Walmart Supercenter, Shiloh Crossing benefits from massive exposure and crosstraffic shopping. • S trong Cash-on-Cash Return: At the asking price, in the current lending environment, Shiloh Crossing presents a rare opportunity to leverage your return to upwards of 12%. This is a phenomenal return for a fully stabilized, grocer-anchored center. • E xcellent Tenant Longevity: Due to its strategic location, Shiloh Crossing has seen phenomenal tenant retention. 59% of the current tenant lineup has occupied the center for over 11 years. • P riced Well Below Replacement Cost: At $209.87 PSF, Shiloh Crossing presents a strong opportunity to buy into a stabilized revenue stream that is priced well below replacement cost. • P riced Below Average Cap Rate in Tyler, TX: The average sale cap rate in Tyler is roughly 7.2%. In contrast, the ask price for Shiloh Crossing is at a 7.61% cap rate. • L ocated Along Rapidly Growing Retail Corridor: Located along the Hwy 110 retail corridor, Shiloh Crossing benefits from its positioning near the most active shopping area in town, Broadway Square. Nearby national retailers include Dillard’s, At Home, Lowe’s, Hobby Lobby, Marshalls, Best Buy, ULTA, Ashley HomeStore, CVS Pharmacy, Natural Grocers, Barnes & Noble, JC Penney, Office Depot, HomeGoods and many, many more. PROPERTY DESCRIPTION
7
S I T E PL A N
SH ILO H C R O SSING
SHILOH RD
113
119
125
131
107
101
Suite
Tenant
SQ FT
101
Verizon
2,880
107
Cato Fashions
4,000
113
Cash Store
1,500
119
Salon
1,500
125
Wash Smart
2,500
131
Topps Pizza
1,200
Totals
13,580
PROPERTY DESCRIPTION
8
A E R I AL MA P
SH ILO H C R O SSING CLARKSTON ELEMENTARY SCHOOL WOODS ELEMENTARY SCHOOL
BISHOP GORMAN CATHOLIC SCHOOL 30,000 VPD
TYLER LEGACY HUBBARD MIDDLE HIGH SCHOOL SCHOOL
S
B RO A D W AY A VE
RICE ELEM. SCHOOL
30,00 0 V PD
30 ,0 0 0V PD
CUMBERLAND ACADEMY HIGH SCHOOL
PROPERTY DESCRIPTION
9
A E R I AL IMAGERY
SH ILO H C R O SSING
SHILOH RD
PROPERTY DESCRIPTION
10
LO C AL MA P
SH ILO H C R O SSING
PROPERTY DESCRIPTION
11
REG IONA L MA P
SH ILO H C R O SSING
PROPERTY DESCRIPTION
12
M A R KET S U MMARY
SH ILO H C R O SSING
Tyler, TX
OVERVIEW Tyler is a city in the U.S. state of Texas and the largest city and county seat of Smith County. The city is located approximately 100 miles southeast of Dallas and about 90 miles southwest of Shreveport, Louisiana. With a 2019 censusestimated population of 106,985, Tyler was the 38th-most populous city in Texas and the largest city in Northeast Texas. It is the principal city of the Tyler metropolitan statistical area, which had an estimated population of 232,751 in 2019, making it the 16th largest MSA in Texas after the Waco and the College Station–Bryan MSAs. The city is named for John Tyler, the 10th President of the United States. In 1985, the international Adopt-a-Highway movement originated in Tyler. After appeals by local Texas Department of Transportation officials, the local Civitan International chapter adopted a two-mile (three kilometer) stretch of U.S. Route 69 to maintain. Tyler is known as the “Rose Capital of America” (also the “Rose City” and the “Rose Capital of the
World”), a nickname it earned from a long history of rose production, cultivation, and processing. It is home to the largest rose garden in the United States, a 14-acre public garden complex that has over 38,000 rose bushes of at least 500 different varieties. The Tyler Rose Garden is also home to the annual Texas Rose Festival, attracting tourists by the thousands each year in mid-October. Tyler serves as the major economic, educational, financial, medical and cultural hub for Northeast Texas and Smith County. Tyler also hosts more than 20,000 higher-education students at the University of Texas at Tyler, while also boasting a university health science center and regional hospital systems. Tyler is also the headquarters for Brookshire Grocery Company, Cavender’s, Southside Bank and Synthesizers.com. Other corporations with major presence within the city limits and surrounding area include AT&T, T-Mobile US, Cricket Wireless, Metro by T-Mobile, Chase Bank, BBVA, Best Buy and Walmart. Tyler is also home to the Caldwell Zoo and Broadway Square Mall.
PROPERTY DESCRIPTION
13
D E M OG RA PHIC STAT I ST I CS
SH ILO H C R O SSING
1 Mile
3 Mile
5 Mile
Population: 2025 Projection
47,236
96,680
183,048
2020 Estimate
45,067
92,282
174,584
2010 Census
40,683
83,547
157,222
Growth 2020-2025
4.81%
4.77%
4.85%
Growth 2010-2020
10.78%
10.46%
11.04%
2020 Population Hispanic Origin
5,390
16,757
38,970
White
36,020
71,246
131,394
Black
6,160
15,755
34,660
252
627
1,476
2020 Population by Race:
Am. Indian & Alaskan
1,703
2,789
3,642
Hawaiian & Pacific Island
Asian
54
118
268
Other
876
1,747
3,144
33
44
121
2025 Projection
19,752
38,647
68,477
2020 Estimate
18,907
37,001
65,459
2010 Census
17,323
33,956
59,494
U.S. Armed Forces:
Households:
Growth 2020 - 2025
4.47%
4.45%
4.61%
Growth 2010 - 2020
9.14%
8.97%
10.03%
Owner Occupied
10,228
19,724
40,400
Renter Occupied
8,678
17,278
25,059
2020 Avg Household Income
$78,251
$78,240
$77,634
2020 Med Household Income
$57,848
$56,642
$57,620
<$25,000
4,200
8,518
14,858
$25,000 - $50,000
3,839
7,768
13,687
$50,000 - $75,000
3,625
6,823
11,897
2020 Households by Household Inc:
$75,000 - $100,000
2,511
4,686
8,484
$100,000 - $125,000
1,491
2,819
5,818
$125,000 - $150,000
1,246
2,351
3,930
$150,000 - $200,000
879
1,713
3,003
$200,000+
1,114
2,323
3,782
Demographic data © CoStar 2020
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: 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