STARBUCKS SHOPS AT HEBRON CARROLLTON, TX DALLAS (MSA)
PRI C I N G & FI N A NC IA L ANALYS IS
S TA RBU CK S SH O P S AT H E B R O N - C AR R O LLTO N, T X
Starbucks Shops at Hebron 1513-1517 W Hebron Pkwy Carrollton, TX 75010
OFFERING SUMMARY Price Cap Rate
$7,185,000 6.00%
Net Operating Income
$431,024
Price PSF
$620.68
Occupancy
100%
Year Built
2018
Gross Leasable Area Lot Size
11,576 SF 1 Acres
F I N A N C I A L A N A LY S I S
2
PRI C I N G & FI N A NC IA L ANALYS IS
PROJECTED INCOME & EXPENSES Base Rent - Occupied Space
100%
GROSS POTENTIAL RENT
S TA RBU CK S SH O P S AT H E B R O N - C AR R O LLTO N, T X
CURRENT
PSF
EXPENSES
$431,024
$37.23
$431,024
$37.23
Expense Reimbursements
CURRENT
PSF
Real Estate Taxes
$95,608
$8.26
Insurance
$8,066
$0.70
Total CAM
$50,571
$4.37
$18,100
$1.56
$172,445
$14.90
Real Estate Taxes
$95,608
$8.26
Management Fee
Insurance
$8,066
$0.70
Total Expenses
CAM
$50,571
$4.37
$18,100
$1.56
Total Expense Reimbursements
$172,445
$14.90
GROSS POTENTIAL INCOME
$603,469
$52.13
EFFECTIVE GROSS REVENUE
$603,469
$52.13
Real Estate Taxes
($95,608)
($8.26)
Insurance
($8,066)
($0.70)
CAM
($50,571)
($4.37)
($18,100)
($1.56)
Total Recoverable Expenses
($172,445)
($14.90)
Net Operating Income
$431,024
$37.23
Management Fee
3.00%
3.00%
For Financing Options, Please Contact: Greg Holley | Managing Partner High St Capital (O) 469-998-7200 | (C) 714.514.2990 gholley@highstcapital.com
Operating Expenses
Management Fee
3.00%
F I N A N C I A L A N A LY S I S
3
RE NT RO L L
S TA RBU CK S SH O P S AT H E B R O N - C AR R O LLTO N, T X % of SQ FT SQFT
% of Start SQFT
End Start
2177
18.81%
02/26/2018
2177 1512-104 Starbucks Castle Hill Lash & Nails
18.81%
2184
2/26/2018
18.87%
2/29/2028
1512-108
2150
18.57%
Suite Suite
1512-100
Tenant Tenant
SQ FT
Starbucks
1512-100
Carrollton Family Dental
1517-100 1512-104
Castle Hill Lash & Smoothie King Nails
1517-104
Pending Tenant
1512-108 1517-108
1517-112 1517-100
1517-104
1517-108
1517-112
PSF
02/29/2028
$46.99
$46.99 03/15/2018$102,300 03/31/2028 $76,246
$34.91
4x5 $35.61
NNN -$136,162 NNN
03/12/2018
$31.00
$34.10
-
NNN
-
-
NNN NNN
-
-
NNN
07/31/2028
1277
11.03%
2150
18.57% 1232
3/12/2018 10.64%
1220
10.54%
07/16/2018
1336 Occupied
11.54% 11,576
4/13/2018 100.00%
4/12/2028
Vacant 1277
0 11.03%
7/1/2024
6/30/2029
$42,141
$33.00
Total
11,576
100.00%
1232
10.64%
8/1/2019
7/31/2025
$43,341
$35.18
Pending Tenant
CBD Plus USA
Marco's Pizza
1220
10.54%
Occupied
11,576
100%
Vacant
0
-
Total
11,576
100%
7/16/2018
$66,650
-
$52.21
$77,771 4/1/2025 04/13/2018 $76,246 04/12/2028 $39.60 3/31/2028 $34.91 $52,906 4/1/2026 $79,326 4/1/2027 $80,913
11.54% 3/15/2018
Marco's Pizza
Annual Escalation Escalation Escalation Escalation Escalation Option Lease PSF OptionsOptions Lease Type RentDate Amount Date PSF Amount Amount Type
$102,300
1336 18.87%
2184
Carrollton Family CBD Plus USA Dental Smoothie King
Annual End Rent
07/01/2024
06/30/2029
$42,141
$33.00
-
7/31/2028 $31.00 $43,341 4/1/2028$35.18$73,315 08/01/2019$66,650 07/31/2025
08/31/2028 $52,906
$46,464 $430,048
8/31/2028
$38.09
$39.60
$46,464
$38.09
$430,048
$37.15
$37.15
$34.10$35.88 2x5
-
$41.89 2x5 $431,024*
4 x$113,667 5 NNN $126,297 $137,775
$80,647
NNN -$88,712 NNN
4x5
$58,176 $64,005
NNN NNN
NNN
8/1/2024
$44,208
$35.88
2x5
2% Annual Increases
NNN
4x5
$51,111 $56,222 $61,844 $68,028
NNN
$431,024*
*Analysis Start Date is 06/01/2024 and Takes Into Consideration a 1 Year Hold From This Date.
F I N A N C I A L A N A LY S I S
4
PRI C I N G & FI N A NC IA L ANALYS IS
S TA RBU CK S SH O P S AT H E B R O N - C AR R O LLTO N, T X
LOAN ASSUMPTION Purchase Price
$7,185,000
Original Loan Amount (10/1/2019)
$4,000,000
Current Loan Balance (As of June 2024)
$3,541,278
Equity to the Note
$3,643,722
Loan to Purchase Price
49.29%
Interest Rate
4.50%
Amortization Schedule
25 Years
Origination Date
10/1/2019
Term
10 Years
Due Date
10/1/2029
NOI
$431,024
Annual Debt Service
$269,252
Cash Flow After Debt Service
$161,772
Debt Service Coverage Ratio
1.60
Cap Rate
6.00%
Cash on Cash Return
4.44%
F I N A N C I A L A N A LY S I S
5
RE NT RO L L
S TA RBU CK S SH O P S AT H E B R O N - C AR R O LLTO N, T X
Sam Rayburn To
llway
162,946 VPD
PD 0V 1 ,2 31
y
on
w Pk
r eb
W
H
F I N A N C I A L A N A LY S I S
6
TE NA NT INF ORMAT I ON
S TA RBU CK S SH O P S AT H E B R O N - C AR R O LLTO N, T X
DBA
Starbucks
Corporate/Franchise
Corporate
Locations
32,660+ Worldwide
Public/Private
Public (NASDAQ: SBUX)
Line of Business
Starbucks Corporation is an American coffee company and coffeehouse chain. Starbucks was founded in Seattle, Washington in 1971. Today it operates 32,660 locations worldwide. Starbucks locations serve hot and cold drinks, whole-bean coffee, microground instant coffee, espresso, caffe latte, full- and looseleaf teas, pastries, and snacks including prepackaged food items, hot and cold sandwiches, and drinkware.
DBA
Castle Hills Lash & Nail
Corporate/Franchise
Corporate
Locations
1
Public/Private
Private
Line of Business
At Castle Hills Lash & Nail, we are here to help with all of your beauty needs! Our team of professionals are highly trained in all of our services, including manicures, pedicures, eyelash extensions, brow shading and/or waxing, or facials, and we are confident in giving you the best services for your beauty! Our luxurious location is a great place to relax and rejuvenate while recieving a top-notch customer experience. Treat yourself to an experience fit for a celebrity by visiting our exquisite nail salon full of comfortable, luxury recliners, zen-like decor, and a professional staff that is eager to serve!
DBA
Carrollton Family Dental
Corporate/Franchise
Corporate
Locations
1
Public/Private
Private
Line of Business
At Carrollton Family Dental, we take immense pride in providing quality and affordable dental care for our community. We offer a wide range of dental services in a warm and comfortable environment in our state-of-art office using the latest and cutting-edge technology and materials. We offer comprehensive care for the whole family. As we all know, ‘Prevention is better than cure’; we truly believe and practice it. Patient education plays a vital role in our practice which can help minimize majority of the dental problems to arise. We understand the high prevalence of dental anxiety in patients and promise to make your visit as comfortable as we can.
PROPERTY DESCRIPTION
7
TE NA NT INF ORMAT I ON
S TA RBU CK S SH O P S AT H E B R O N - C AR R O LLTO N, T X DBA
Smoothie King
Corporate/Franchise
Franchise
Locations
1,350+ Nationwide
Public/Private
Private
Line of Business
Smoothie King Franchises, Inc., is a privately held, Dallas-area-based franchise company with nearly 1,400 units worldwide. By creating each Smoothie with a “purpose”, our smoothie business makes it simple and pleasurable for guests to achieve their individual health goals. Our stores offer a number of healthier retail products in addition to our delicious smoothies, including sports beverages, energy bars, vitamin supplements, and more.Fruit, juice, yogurt, and dairy are all commodities that anyone with a blender can provide. Only Smoothie King creates specialized Smoothies that are expertly blended with more than “just fruit in a blender” for specific needs, goals, and ambitions.
DBA
CBD Plus USA
Corporate/Franchise
Franchise
Locations
80+ Nationwide
Public/Private
Private
Line of Business
At CBD Plus USA, our goal is to nuture and inspire natural well-being. We are on a mission to educate the public on CBD and it’s many benefits for overall health and healing. Our shops contain a wide range of natural oils, accessories, and related products that are created with intention and care for those in need. We are currently growing at a rapid rate, with over 80 locations nationwide, and plans for further expansion!
DBA
Marco’s Pizza
Corporate/Franchise
Franchise
Locations
1,158+ Nationwide
Public/Private
Private
Line of Business
Founded in Oregon, Ohio, just outside of Toledo, we’ve been a Slice of the CommunityTM since 1978. We got here by doing things the right way, because when you love pizza this much, that’s the only way to do things. Our dedication to quality has made us one of the fastest-growing pizza brands in America, providing plenty of delicious moments and opportunities along the way.
PROPERTY DESCRIPTION
8
I N VE S TMENT HI GHLI GHT S
•
S TA RBU CK S SH O P S AT H E B R O N - C AR R O LLTO N, T X
Class “A” Retail Strips Built in 2018
• 2 Buildings Totaling 11,576 SF on NNN Leases • Both Buildings Equipped w/Drive Thru End Caps • Complementary & Synergistic Mix of National & Local Tenants • Attractive Assumable Financing in Place at 4.50% (See Page 5 for More Details) • Outstanding Demographics – Average Household Income Over $129,000 in a 1 Mile Radius – Almost 2X the National Average • High Growth Trade Area – 7.3% Annual Population Growth Since 2010 in a 1 Mile Radius • Fronting Hebron Pkwy – Visible to Over 31,000 Vehicles per Day • Adjacent to Highway 121 – Where Over 162,000 Vehicles per Day Travel Over the Hebron Parkway Exit • Surrounding National Retailers Include Walmart Neighborhood Market, Kroger, Kohl’s, Sprouts, Tom Thumb, Chase Bank, Wells Fargo, The UPS Store, CVS, Walgreens, 7-Eleven, Panda Express, Jiffy Lube & Many Others
PROPERTY DESCRIPTION
9
S I T E PL A N
S TA RBU CK S SH O P S AT H E B R O N - C AR R O LLTO N, T X
wy W Hebron Pk
31,210 VPD
Pending Tenant
PROPERTY DESCRIPTION
10
A E R I AL MA P
SA
M
RA YB
UR
N
TO
LL W AY
16 2
,9 4
6V
PD
S TA RBU CK S SH O P S AT H E B R O N - C AR R O LLTO N, T X
CREEK VALLEY MIDDLE SCHOOL
W HEBR
ON PK W
Y
HEBRON VALLEY ELEMENTARY
31 ,210 V P
D
MARKET OVERVIEW
11
LO C AL MA P
S TA RBU CK S SH O P S AT H E B R O N - C AR R O LLTO N, T X
MARKET OVERVIEW
12
REG IONA L MA P
S TA RBU CK S SH O P S AT H E B R O N - C AR R O LLTO N, T X
MARKET OVERVIEW
13
M A R KET S U MMARY
S TA RBU CK S SH O P S AT H E B R O N - C AR R O LLTO N, 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
14
D E M OG RA PHIC STAT I ST I CS
S TA RBU CK S SH O P S AT H E B R O N - C AR R O LLTO N, T X
1 Mile
3 Mile
5 Mile
Population
1 Mile
3 Mile
5 Mile
Households:
2010 Population
9,308
60,853
211,669
2010 Households
3,485
22,417
81,788
2023 Population
18,117
96,318
284,859
2023 Households
6,643
35,953
109,772
2028 Population Projection
20,097
105,292
303,940
2028 Household Projection
7,367
39,383
117,291
Annual Growth 2010-2023
7.30%
4.50%
2.70%
Annual Growth 2010-2023
7.10%
4.80%
2.70%
Annual Growth 2023-2028
2.20%
1.90%
1.30%
Annual Growth 2023-2028
2.20%
1.90%
1.40%
Median Age
38.4
38.8
38
Owner Occupied
3,976
22,816
59,613
Bachelor's Degree or Higher
46%
45%
42%
Renter Occupied
3,391
16,567
57,678
0
21
91
Avg Household Size
2.7
2.6
2.5
Avg Household Vehicles
2
2
2
Total Consumer Spending
$249.7M
$1.3B
$3.7B
U.S. Armed Forces
Population by Race White
7,962
54,755
178,824
Black
2,189
12,017
41,245
61
616
2,301
Avg Household Income
$129,929
$122,531
$111,572
Asian
7,371
26,151
54,101
Median Household Income
$101,058
$97,359
$85,950
Hawaiian & Pacific Islander
14
86
246
< $25,000
291
2,334
9,235
Two or More Races
520
2,693
8,143
$25,000 - 50,000
818
4,685
18,072
Hispanic Origin
2,200
17,559
70,264
$50,000 - 75,000
981
5,503
20,536
$75,000 - 100,000
1,194
6,099
16,080
American Indian/Alaskan Native
Housing
Income
Median Home Value
$380,410
$337,618
$319,131
$100,000 - 125,000
898
4,273
12,175
Median Year Built
2009
2005
1997
$125,000 - 150,000
553
3,640
9,200
$150,000 - 200,000
811
4,353
11,101
$200,000+
1,098
5,067
13,374
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