Sierra Marketplace - Red Oak, TX by STRIVE

SIERRA MARKETPLACE RED OAK, TX

PRICING & FINANCIAL ANALYSIS

SIERRA MARKETPLACE

FINANCIAL ANALYSIS

Sierra Marketplace 132 East Ovilla Road Red Oak, TX 75154

Offering Summary Price Cap Rate Net Operating Income

$8,255,000 8.00% $660,258

Price PSF

$180

Occupancy

100%

Gross Leasable Area Lot Size

1984, 1986

PROPERTY DESCRIPTION

Year Built

± 45,804 SF ± 5.58 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. © 2017 STRIVE

PRICING & FINANCIAL ANALYSIS

SIERRA MARKETPLACE

PSF

$666,886

$14.56

$0.00

$666,886

$14.56

Real Estate Tax Reimb.

$81,818

$1.79

Insurance Reimb.

$14,963

$0.33

CAM Reimb.

$43,140

$0.94

Mgmt./Admin. Fee Reimb.

$19,725

$0.43

$159,645

$3.49

$826,531

$18.04

Base Rent Percentage Rent GROSS POTENTIAL RENT Expense Reimbursements

Total Expense Reimbursements EFFECTIVE GROSS REVENUE Expenses

Expenses

Current

PSF

Real Estate Taxes

$81,818

$1.79

Insurance

$14,963

$0.33

Repairs

$1,383

$0.03

Lighting / Electric Repairs

$3,761

$0.08

Exterior Landscaping

$8,714

$0.19

Painting

$758

$0.02

Window Cleaning

$129

$0.00

Parking Lot Cleaning

$1,276

$0.03

Parking Lot R&M

$2,048

$0.04

Signage

$4,205

$0.09

Electricity

$7,459

$0.16

CAM

Real Estate Taxes

$81,818

$1.79

Water & Sewer

$3,245

$0.07

Insurance

$14,963

$0.33

Irrigation Water

$14

$0.00

CAM

$42,746

$0.93

Trash Disposal

$9,754

$0.21

$24,182

$0.53

$42,746

$0.93

$163,709

$3.57

$24,182

$0.53

$163,709

$3.57

Mgmt. Fee (% of GPI) Total Expenses

NET OPERATING INCOME

2.90%

662,822

Total CAM Management Fee (% of GPI)

TOTAL EXPENSES

3.00%

PROPERTY DESCRIPTION

Current

FINANCIAL ANALYSIS

Income & Expenses

RENT ROLL

SIERRA MARKETPLACE

Sq Ft

% of Sq Ft

Start

End

Annual Rent

PSF

132-01

Dollar Tree

8,443

18.43%

08/16

07/21

$78,098

$9.25

132-05

Snuffer's

3,600

7.86%

03/15

02/20

$63,000

$17.50

132-07

Ovilla Road Cleaners

2,040

4.45%

09/07

08/17

$30,600

$15.00

132-08

Angeline Nails & Spa

1,500

3.27%

06/16

05/21

$21,000

132-09

Jackson Hewitt

1,500

3.27%

07/05

06/17

132-10

Smart Cuts Family Salon

1,500

3.27%

06/11

132-12

Anytime Fitness

6,000

13.10%

132-14

Kwik Klean Laundry

1,500

132A

Life School Dallas

Occupied Vacant Total

Escalation Date

Escalation Amount

$14.00

06/20

$15.00

$17,250

$11.50

07/15

$12.00

04/20

$20,625

$13.75

10/08

10/18

$79,500

$13.25

3.27%

12/08

08/17

$25,500

$17.00

19,721

43.06%

08/14

07/24

$331,313

$16.80

08/16 08/17 08/18 08/19 08/20 08/21 08/22 08/23

$16.67 $16.80 $16.92 $17.05 $17.19 $17.32 $17.46 $17.60

45,804

100.0%

0.0%

45,804

100.0%

PROPERTY DESCRIPTION

Tenant

FINANCIAL ANALYSIS

Suite

$666,886

Lease Notes: Static analysis information obtained from Rent Roll dated 1/31/2016 and yearend 2015 Income Statement.

TENANT INFORMATION

SIERRA MARKETPLACE

FINANCIAL ANALYSIS

Company Summary Company Ownership Number of Locations Years In Business Headquarters Website

Life School of Dallas Corporate (Government funded) 8 19 Years Dallas, TX www.lifeschools.net

PROPERTY DESCRIPTION

Life School of Dallas is a charter school started in 1998 and funded by the State of Texas. Since its inception over a decade ago, Life School of Dallas has experienced substantial increases in enrollment. Testimonies from parents to friends, neighbors, and co-workers have fueled rapid growth. Today, Life School of Dallas has grown to eight campuses serving several thousand students. The mission of Life School of Dallas is to train leaders with life skills for the twenty-first century by establishing strong academics, character training, and a parenting program. This particular location will serve as the schools administrative offices.

Company Summary Company Ownership Rating Agency Ticker Symbol Exchange Market Cap Sales Volume Number of Locations Years In Business Headquarters Website

Public BB+ Standard & Poor’s DLTR NASDAQ

MARKET OVERVIEW

Dollar Tree is the largest and most successful single-price-point retailer in North America. Additionally, in 2015, Dollar Tree acquired Family Dollar stores. Dollar Tree provides a variety of products for health & beauty, food, party and seasonal décor, houswares and much more.

Dollar Tree Stores, Inc

16.97 Billion 1.97 Billion 13,600+ 64 Years Chesapeake, VA www.dollartree.com

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

SIERRA MARKETPLACE

Company DBA

Anytime Fitness has over two million members around the globe. This 24-hour fitness center has cutting-edge strength training and cardio equipment. Additional services offered are tanning, personal training, classes, and wellness programs are additional services offered at Anytime Fitness.

BAW Fitness Facility, LLC Anytime Fitness

Ownership

Private

Number of Locations

2,300+

Years In Business Headquarters Website

FINANCIAL ANALYSIS

Company Summary

15 Years Woodbury, MN www.anytimefitness.com

Company

Firebird Copenhagen, LLC

DBA

Snuffer’s Restaurant & Bar

Ownership Number of Locations Snuffer’s Restaurant & Bar opened its first location 39 years ago in Dallas, Texas. Renowned for their signature menu of legendary burgers and famous original cheddar fries, Snuffer’s original concept remains: to serve the absolute freshest, most flavorful casual menu at family friendly, affordable prices.

Years In Business Headquarters Website

PROPERTY DESCRIPTION

Company Summary Private 10+ 39 Years Dallas, TX www.snuffers.com

Company Summary DBA Ownership Number of Locations Jackson Hewitt is the second largest tax-preparation service in the U.S. responsible for preparing more than 2.5 million electronic federal, state and local individual income-tax returns each year.

Years In Business

Macho Services, LLC

MARKET OVERVIEW

Company

Jackson Hewitt Tax Service Private 6,300 + 35 Years

Headquarters

Jersey City, New Jersey

Website

www.jacksonhewitt.com

INVESTMENT HIGHLIGHTS

SIERRA MARKETPLACE

FINANCIAL ANALYSIS

Life School: Founded in 1998, the Life School is a government funded charter school with eight campuses throughout Dallas. Life School’s NNN lease is structured with annual increases ranging from $2,300$2,700 per year over the term of the lease. Life School, No Kick-Out Clause: Typically government entities or businesses supported by government funds will structure their leases with a termination clause which allows the tenant to exercise the termination with 90 days’ notice. However, in this case the Landlord did not allow for a termination clause. With no kick-out, this lease provides a purchaser exceptional security with the Property’s cash-flow. The State of Texas funds between approximately $6,500 and $7,500 per child to the school.

PROPERTY DESCRIPTION

Complementary Tenant Mix: Sierra Marketplace has a diverse mix of tenants who serve the daily needs of the neighborhood. Adjacent to Walmart Supercenter, the Property combines specialty retail, restaurants and service tenants generating steady traffic and promoting cross-shopping. Ample Access & Visibility: The Property was constructed in a straight line configuration benefitting every tenant with exposure to Ovilla Road. Additionally, there are two points of entry from Ovilla Road as well as one point of entry from Burney Lane, the access road to Walmart Supercenter. Area Traffic Generators: Located adjacent to Walmart Supercenter, Sierra Marketplace is located along the main retail corridor in Red Oak. Other area retailers driving consumer traffic include CVS, Walgreens, GNC, Dollar General, Pizza Hut, O’Reilly’s, AT&T, and RaceTrac.

MARKET OVERVIEW

DFW Advantage: The fourth largest as well as one of the fastest growing metropolitan area in the country, Dallas/Fort Worth’s population is projected to increase to over 10.9 million people and employ more than 6.6 million by 2030. The DFW region’s high quality of life, strong economy, low cost of living, young and skilled labor force, pro-business environment, and absence of state income taxes all contribute to the thriving Dallas/Fort Worth location. These attributes together with DFW’s central location and the world-class transportation infrastructure continue to attract new businesses and residents to DFW. A major corporate headquarters destination, the DFW region ranks among the top three U.S. metropolitan areas for business expansions, relocations and employment growth.

SITE PLAN

SIERRA MARKETPLACE

Suite

Size

8,443

Snuffer’s

3,600

Ovilla Road Cleaners

2,040

Angeline Nails & Spa

1,500

Jackson Hewitt

1,500

Smart Cuts Family Salon

1,500

Anytime Fitness

6,000

Life School Dallas

1,500

132A

19,721

PROPERTY DESCRIPTION

Dollar Tree

Kwik Klean Laundry

FINANCIAL ANALYSIS

Tenant

AERIAL MAP

SIERRA MARKETPLACE

FINANCIAL ANALYSIS

35E

PROPERTY DESCRIPTION

WALMART SUPERCENTER

SIERRA MARKETPLACE

ILL

MARKET OVERVIEW

AERIAL MAP

SIERRA MARKETPLACE

FINANCIAL ANALYSIS

Potential Additional Parking

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

LOCAL MAP

SIERRA MARKETPLACE

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

REGIONAL MAP

SIERRA MARKETPLACE

LEASE COMPARABLES

SIERRA MARKETPLACE

Available SF

Rental Rates

NNN

45,804

1984, 1986/ 2008

100.0%

The Life School, Dollar Tree, Anytime Fitness, Snuffer's, Jackson Hewitt, Ovilla Road Cleaners

$9.25 - $17.50

$3.57

Red Oak Crossing 102 Ovilla Road

8,522

2014

100.0%

WingStop, Sprint, Palio's Pizza, Sprint

$22.00 - $26.00

$4.45

Red Oak Plaza 108 - 110 Ovilla Road

10,610

2002/ 2005

91.5%

H&R Block, US Postal Service, Great Clips, The Lonestar Burger Bar

900

$18.00

$7.01

Red Oak Square 100 Plaza Drive

9,381

2006

30.1%

Mamacita's

6,553

$14.00 - $16.00

$5.00

Red Oak Depot 301 - 309 Ovilla Road

39,782

2005

90.8%

Baylor Family Medical Center, Edward Jones

3,660

$24.00

$7.17

Sierra Marketplace  132 E. Ovilla Road Red Oak, TX

Major Tenants

PROPERTY DESCRIPTION

Current Occupancy

GLA

FINANCIAL ANALYSIS

Year Built/ Renovated

Property Name

LEASE COMPARABLES

SIERRA MARKETPLACE

FINANCIAL ANALYSIS

Sierra Marketplace 1

Red Oak Plaza

Red Oak Square

Red Oak Depot

Red Oak Crossing

PROPERTY DESCRIPTION

4 1 2

MARKET SUMMARY

SIERRA MARKETPLACE

FINANCIAL ANALYSIS PROPERTY DESCRIPTION

DALLAS, TX 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.

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 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 20.

DEMOGRAPHIC STATISTICS

1 Mile

3 Mile

5 Mile

5,046 4,758 4,495 6.05% 5.85% 1,475

30,694 28,571 25,025 7.43% 14.17% 7,072

91,772 84,803 70,981 8.22% 19.47% 16,942

3,835 737 64 29 5 88 0

19,735 7,786 270 189 20 571 8

45,009 37,126 576 568 57 1,467 22

1,697 1,598 1,505 6.20% 6.18% 957 641 $65,367 $49,889

10,306 9,570 8,290 7.69% 15.44% 7,290 2,279 $78,490 $65,518

31,533 29,070 24,047 8.47% 20.89% 22,394 6,676 $79,669 $65,464

359 443 248 263 132 75 50 29

1,321 2,397 1,799 1,665 974 600 468 346

3,995 6,916 6,036 4,936 2,723 1,647 1,614 1,203

FINANCIAL ANALYSIS

Radius

SIERRA MARKETPLACE

Population: 2021 Projection 2016 Estimate 2010 Census Growth 2016-2021 Growth 2010-2016 2016 Population Hispanic Origin

2016 Population by Race:

PROPERTY DESCRIPTION

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

Households: 2021 Projection 2016 Estimate 2010 Census Growth 2016-2021 Growth 2010-2016 Owner Occupied Renter Occupied 2016 Avg Household Income 2016 Med Household Income

2016 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+

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.

Net Lease Disclaimer STRIVE hereby advises all prospective purchasers of Net Leased 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 net leased 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 net leased 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 net leased 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 tenant 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 tenant 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 lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant 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 net leased 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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