701 W MagnoliaFor Sale Opportunity

EXECUTIVESUMMARY

LOCATION OVERVIEW

PROPERTY DESCRIPTION

APARTMENT OVERVIEW

FINANCIAL ANALYSIS

2 31 4 5

T A B L E O F C O N T E N T S

1 EXECUTIVE SUMMARY

THE INVESTMENT OPPORTUNITY JLL is pleased to present investors with the opportunity to acquire 701 West Magnolia, a historical mixed-use complex located on the main thoroughfare of one of Fort Worth’s most iconic entertainment districts (“the Near Southside”). This lifestyle-oriented property, strategically located on the SWC of Magnolia & Hemphill, provides an opportunity to own an irreplaceable asset coupled with a covered land play for future development in one of Fort Worth’s most dynamic areas. The Near Southside is currently home to 40,000 employees, and 98,000 residents live within a 3-mile radius. Another 45,000 daytime employees work in nearby Downtown, linked via direct connection by the Hemphill Street corridor. 701 West Magnolia’s location near thriving neighborhoods, acclaimed dining destinations, art incubators, unique shopping, entertainment venues, Fort Worth’s medical hub, and ease of accessibility offers residents a living experience rarely found in DFW.

Benefiting from its Historic Southside location, minutes from downtown and the city’s four largest hospitals, and with close proximity to the TCU campus, the Property is ideally positioned to take advantage of the demand occurring in the immediate area.

This iconic building provides excellent curb appeal, authentic architecture, and unmatched lifestyle options that are unparalleled in the area. 701 West Magnolia is an irreplaceable asset with future development upside in the heart of the dynamic Near Southside.

PROPERTY DETAILSProject Size (SF) 14,271 Price $4,900,000Year Built 1927 (renovated 2016) Terms All CashLand Acreage 1.54 Loft Square Footage 6,112 (5 lofts)Retail Square Footage 8,159 Year 1 NOI $270,409Retail Occupancy 100% Exit NOI (Year 5) $314,561

Address: 701 West Magnolia, Fort Worth, Texas4

E X E C U T I V E S U M M A R Y

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2 Location Overview

Area Overview | Downtown Fort Worth

Near SouthsideOverview

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L O C A T I O N O V E R V I E W

L O C A T I O N O V E R V I E W

HISTORIC URBAN VILLAGE LIVINGSituated between the Medical District and Fairmount neighborhood, Magnolia Avenue is the heart of the Near Southside’s urban lifestyle. With

nearby major employment hubs and quality retail services, including a wide variety of boutique cafes, entertainment, and art, its residents have

access to a full “Live/ Work/Play” experience. The Near Southside boasts eclectic gastropubs, wine cafes, and cocktail bars, dozens of restaurants,

three of the most recognizable coffee houses in Fort Worth, Rahr & Sons Brewing Co., multiple bakeries, trendy salons and barbershops, international

cuisine, and gourmet ice cream, intermixed with creative office and co-sharing space. In addition to Magnolia Avenue, the city’s investment on

South Main Street is coming to fruition with booming multifamily, creative office space, and homegrown entertainment, including Pouring Glory,

HopFusion, Cannon Chinese Kitchen, and Republic Street Bar.

HIGH WALKABILITY SCOREWith a walk score of 84 from WALKSCORE.COM, the immediate area is one of the most walkable locations

in North Texas. And as the area continues to grow, more entertainment, office, and residential options

will become increasingly walkable. With award winning local restaurants like Ellerbe Fine Foods, Shinjuku

Station, Heim Barbecue, Cane Rosso, Bearded Lady, and Nonna Totta, Magnolia Avenue and the Near

Southside are a food lover’s paradise. Within the past two years, Texas Monthly has crowned Heim

Barbecue as one of the Top-50 BBQ restaurants in Texas and Bearded Lady’s L.U.S.T. Burger as one of the

Top-5 burgers in Texas. In addition, Magnolia Avenue’s pioneering street re-design and the city’s Bike Fort

Worth plan has made the Near Southside Fort Worth’s most bike-friendly district.

84WALKSCORE.COM

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L O C A T I O N O V E R V I E W

ART & CULTURAL CENTERFor years, the Near Southside has been a haven for artists, musicians,

and creative agencies. The area’s artistic identity has continued to

grow with festivals, art displays, performance venues, studios, and

community events. Over the past 15 years, ArtsGoggle has evolved into

a popular annual arts festival as Magnolia Avenue closes for a weekend

and showcases outdoor art, live music, and food, drawing more than

30,000 people. Magnolia Green is host to ongoing performances

throughout the year, including the Friday on the Green and Broadway

Off Broadway concert series. Local venues such as Shipping & Receiving,

Twilite Lounge, MASS Main, Rahr & Sons, and Fairmount Music Hall

regularly host live music, while Amphibian Stage Productions offers a

unique slate of independent plays and performances.

FORT WORTH MEDICAL DISTRICTThe Near Southside’s Medical District dominates Fort Worth’s healthcare industry. Its hospital institutions include Texas Health Harris Methodist,

Cook Children’s, Baylor Scott & White All Saints, JPS public hospital, Medical City Fort Worth, UT Southwestern Moncrief Cancer, and Moncrief Medical

Center. Hundreds of independent clinics also surround the hospitals, bringing another 8,000 jobs to the area by themselves.

Cook Children’s Medical Center

John Peter Smith Hospital

Moncreif Cancer Institute

THR Harris Methodist

Medical City Fort Worth

Baylor Scott & White Medical Center

Baylor Surgical Hospital

UT Southwestern

MAGNOLIA GREEN

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L O C A T I O N O V E R V I E W

RAHR & SONS

W Magnolia Avenue

W Magnolia AvenueHem

phill Stre

et

Hemphill

Street

Rosedale StreetRosedale Street

Proposed HotelDevelopment

Proposed HotelDevelopment

Fort WorthCBD

Fort WorthCBD

AssistedLiving

AssistedLiving

Magnolia Green

Magnolia Green

Fort WorthPolice Station

Fort WorthPolice Station

Mag & MayApartmentsMag & May

Apartments

Phoenix Apartments

Phoenix Apartments

Williams& Dickie HQ

Williams& Dickie HQ415 Hemphill

Multifamily Development

415 HemphillMultifamily

Development

N

Lang Partners / Apartment Development

Site

Lang Partners / Apartment Development

Site

South 400ApartmentsSouth 400

Apartments

HemphillDowntownConnector

HemphillDowntownConnector

701 W Magnolia

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L O C A T I O N O V E R V I E W

3 Property Description

2016-2017CAPITAL EXPENDITURES

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P R O P E R T Y D E S C R I P T I O N

Lofts: $413,515Roof: $94,178Parking Lot: $32,244Total: $539,937

Hemphill Street

Hemphill StreetW Magnolia Avenue

W Magnolia Avenue

W Morphy Street

W Morphy Street

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P R O P E R T Y D E S C R I P T I O N

SITE PLAN

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P R O P E R T Y D E S C R I P T I O N

SURVEY

15

P R O P E R T Y D E S C R I P T I O N

FLOOR PLAN

GROUND FLOOR16

P R O P E R T Y D E S C R I P T I O N

GROUND FLOOR RESTAURANT, SALON AND OFFICE

17

P R O P E R T Y D E S C R I P T I O N

FLOOR PLAN

SECOND FLOOR18

P R O P E R T Y D E S C R I P T I O N

SECOND FLOOR LOFTS AND PATIO

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P R O P E R T Y D E S C R I P T I O N

5.D. Building Height 1. HEIGHT GUIDELINE – New single-story buildings are strongly discouraged.

Multi-story buildings are consistent with the urban character of the district and are essential in achieving economic and urban design goals for the district.

2. BUILDING HEIGHTS shall conform to the standards listed below and shown in the diagrams to the right. Zones are shown on maps in Section 4.B. Height is measured in stories, not including a raised basement or inhabited attic; i.e., the number of complete stories between the average grade of the frontage line to the eave of a pitched roof or to the surface of a flat roof.

10 stories T5 or T5N: a&b, a&c, or b&c

8 stories T5 or T5N: a, b, or c

6 stories

5 stories

4 stories

10 stories

5 stories

6 stories T4-I

T5 or T5N

T5-I

T4-N: a, b, or c Maximum heights with a) mix of use, b) public space, and/or c) struc-tured parking bo-nuses (See Section 5.D.3.)

T4: a, b, or c

3 stories

T4: a&b, a&c, or b&c

T4 and T4-N Maximum heights

New façades along public streets and pub-lic spaces: •Buildings < 4,000 sq. ft.: 15 ft. •Buildings 4,000 sq.ft.: 18 ft. for at least

50% of the façade, unless located along a primary street– see 5.D.3 be-low.

Ground floors of multistory non-residential buildings: min. 10 ft., floor to ceiling.

Minimum heights (Also see 5.D.1. guideline above)

T4 BUILDING HEIGHTS

T5 BUILDING HEIGHTS

SECTION 5. DEVELOPMENT STANDARDS AND GUIDELINES NEAR SOUTHSIDE DISTRICT

37

3. BUILDING HEIGHT ALONG PRIMARY STREET Two (2) stories consisting of a minimum of 18 feet along the following streets: W. Vickery Boulevard from Adams Street to S. Main Street Pennsylvania Avenue from 8th Avenue to S. Main Street W. Rosedale Street from Jerome Street to Evans Avenue W. Magnolia Avenue from 8th Avenue to S. Main Street Park Place Avenue from FWRR to 8th Avenue 8th Avenue from Pennsylvania Avenue to Park Place Avenue S. Henderson Street from I-30 to W. Magnolia Avenue S. Hemphill Street from W. Vickery Boulevard to W. Allen Avenue S. Jennings Avenue from W. Vickery Boulevard to W. Magnolia Avenue S. Main Street from W. Vickery Boulevard to W. Magnolia Avenue Refer to map in Section 3.F.

5.D. Building Height 1. HEIGHT GUIDELINE – New single-story buildings are strongly discouraged.

Multi-story buildings are consistent with the urban character of the district and are essential in achieving economic and urban design goals for the district.

2. BUILDING HEIGHTS shall conform to the standards listed below and shown in the diagrams to the right. Zones are shown on maps in Section 4.B. Height is measured in stories, not including a raised basement or inhabited attic; i.e., the number of complete stories between the average grade of the frontage line to the eave of a pitched roof or to the surface of a flat roof.

10 stories T5 or T5N: a&b, a&c, or b&c

8 stories T5 or T5N: a, b, or c

6 stories

5 stories

4 stories

10 stories

5 stories

6 stories T4-I

T5 or T5N

T5-I

T4-N: a, b, or c Maximum heights with a) mix of use, b) public space, and/or c) struc-tured parking bo-nuses (See Section 5.D.3.)

T4: a, b, or c

3 stories

T4: a&b, a&c, or b&c

T4 and T4-N Maximum heights

New façades along public streets and pub-lic spaces: •Buildings < 4,000 sq. ft.: 15 ft. •Buildings 4,000 sq.ft.: 18 ft. for at least

50% of the façade, unless located along a primary street– see 5.D.3 be-low.

Ground floors of multistory non-residential buildings: min. 10 ft., floor to ceiling.

Minimum heights (Also see 5.D.1. guideline above)

T4 BUILDING HEIGHTS

T5 BUILDING HEIGHTS

SECTION 5. DEVELOPMENT STANDARDS AND GUIDELINES NEAR SOUTHSIDE DISTRICT

37

3. BUILDING HEIGHT ALONG PRIMARY STREET Two (2) stories consisting of a minimum of 18 feet along the following streets: W. Vickery Boulevard from Adams Street to S. Main Street Pennsylvania Avenue from 8th Avenue to S. Main Street W. Rosedale Street from Jerome Street to Evans Avenue W. Magnolia Avenue from 8th Avenue to S. Main Street Park Place Avenue from FWRR to 8th Avenue 8th Avenue from Pennsylvania Avenue to Park Place Avenue S. Henderson Street from I-30 to W. Magnolia Avenue S. Hemphill Street from W. Vickery Boulevard to W. Allen Avenue S. Jennings Avenue from W. Vickery Boulevard to W. Magnolia Avenue S. Main Street from W. Vickery Boulevard to W. Magnolia Avenue Refer to map in Section 3.F.

5.D. Building Height 1. HEIGHT GUIDELINE – New single-story buildings are strongly discouraged.

Multi-story buildings are consistent with the urban character of the district and are essential in achieving economic and urban design goals for the district.

2. BUILDING HEIGHTS shall conform to the standards listed below and shown in the diagrams to the right. Zones are shown on maps in Section 4.B. Height is measured in stories, not including a raised basement or inhabited attic; i.e., the number of complete stories between the average grade of the frontage line to the eave of a pitched roof or to the surface of a flat roof.

10 stories T5 or T5N: a&b, a&c, or b&c

8 stories T5 or T5N: a, b, or c

6 stories

5 stories

4 stories

10 stories

5 stories

6 stories T4-I

T5 or T5N

T5-I

T4-N: a, b, or c Maximum heights with a) mix of use, b) public space, and/or c) struc-tured parking bo-nuses (See Section 5.D.3.)

T4: a, b, or c

3 stories

T4: a&b, a&c, or b&c

T4 and T4-N Maximum heights

New façades along public streets and pub-lic spaces: •Buildings < 4,000 sq. ft.: 15 ft. •Buildings 4,000 sq.ft.: 18 ft. for at least

50% of the façade, unless located along a primary street– see 5.D.3 be-low.

Ground floors of multistory non-residential buildings: min. 10 ft., floor to ceiling.

Minimum heights (Also see 5.D.1. guideline above)

T4 BUILDING HEIGHTS

T5 BUILDING HEIGHTS

SECTION 5. DEVELOPMENT STANDARDS AND GUIDELINES NEAR SOUTHSIDE DISTRICT

37

3. BUILDING HEIGHT ALONG PRIMARY STREET Two (2) stories consisting of a minimum of 18 feet along the following streets: W. Vickery Boulevard from Adams Street to S. Main Street Pennsylvania Avenue from 8th Avenue to S. Main Street W. Rosedale Street from Jerome Street to Evans Avenue W. Magnolia Avenue from 8th Avenue to S. Main Street Park Place Avenue from FWRR to 8th Avenue 8th Avenue from Pennsylvania Avenue to Park Place Avenue S. Henderson Street from I-30 to W. Magnolia Avenue S. Hemphill Street from W. Vickery Boulevard to W. Allen Avenue S. Jennings Avenue from W. Vickery Boulevard to W. Magnolia Avenue S. Main Street from W. Vickery Boulevard to W. Magnolia Avenue Refer to map in Section 3.F.

Hemphill Street

Hemphill StreetW Magnolia Avenue

W Magnolia Avenue

W Morphy Street

W Morphy Street

+/- 22,995 SF+/- 22,995 SF

+/- 19,225 SF+/- 19,225 SF

FUTURE DEVELOPMENT OPPORTUNITY

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P R O P E R T Y D E S C R I P T I O N

4 Apartment Overview

Amtrak-FortWorth

Tre-Ft WorthItc Station

Tre-Texas andPacific Station

Fort Worth

199

280

30

35

287

287

TrinityPark

Harmon FieldPark

ForestPark

FarringtonField

Purple H eart Trl

Chisholm

Trail

Pkwy

Ctp

Martin l King Jr Fwy East Fwy

West Fwy

W Belknap StE Weatherfo

rd St

E Belknap St

N

Henderson St

Hend

erso

n St

S Henderson St

E Allen Ave

E Hattie St

S Univ ersi ty Dr

West Fwy

Hem

p hill

St

Sou th F wy

W Allen Ave

8th Ave

W Rosedale St

N Main St

Sout

h Fw

y

E Maddox Ave

E Allen Ave

E Lancaster Ave

E Hattie St

E Vickery Blvd

S Ri

v ers

i de

Dr

E Rosedale St

West Fwy

Summ

it Ave

University Dr

Univ

ersi

t y D

r

W Lancaster Ave

W 7th St

N Fo

rest P

ark B

lvd

Riversi de Dr

S Sylvania Ave

W Lancaster Ave

W 7th St

Macon St

Cher

r y S

t

W 6th St

Houston St

Martin l King Jr Fwy

Hemphill St

New Hemphill

Connector

Texas HealthHarris Methodist

Cook Children’sMedical Center

Medical CityFort Worth

John Peter Smith Hospital

Texas HealthHarris Methodist

Cook Children’sMedical Center

Medical CityFort Worth

John Peter Smith Hospital

1

3

45

432

1

3

4

5

432

m a ps4ne ws .c om / © HE RE

PROPERTY UNIT TYPE $/MO APT SF $/SF/MO $/SF/YR

1 Highpoint Urban Living 1BR/1BA $1,350 631 $2.14 $25.67

2 Mag & May 1BR/1BA $1,410 720 $1.96 $23.50

3 Monarch Medical Dist. 1BR/1BA $1,375 700 $1.96 $23.57

4 South 400 1BR/1BA $1,350 730 $1.85 $22.19

5 The Phoenix 1BR/1BA $1,200 694 $1.73 $20.75

1BR/1BA Average $1.93 $23.14

PROPERTY UNIT TYPE $/MO APT SF $/SF/MO $/SF/YR

2 Mag & May 2BR/2BA $2,010 1,082 $1.86 $22.29

3 Monarch Medical Dist. 2BR/2BA $2,010 1,130 $1.78 $21.35

5 The Phoenix 2BR/2BA $1,800 1,121 $1.61 $19.27

4 South 400 2BR/2BA $1,725 1,085 $1.59 $19.08

1 Highpoint Urban Living 2BR/2BA $1,465 1,068 $1.37 $16.46

2BR/2BA Average $1.64 $20.50

COMBINED AVERAGE $1.78 $21.21

APARTMENT RENTS

LOCATION OPEX S/SF/YR APT SF

1 410-420 S Henderson NNN $24.00 Ofc/Med

2 601-615 S Main St NNN $23.00 Ofc/MU

3 804 S Main St NNN $22.00 Ofc/MU

4 1200 W Magnolia Ave NNN $21.00 Office

5 1300 W Rosedale NNN $20.00 Medical

Average $22.00

OFFICE RENTS

Area rents and construction costs indicate that the subject property provides strong upside for the investor.

701 W. Magnolia

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N E A R S O U T H S I D E R E N T S

5 Financial Analysis

A P A R T M E N T M A R K E T O V E R V I E W

Tenant Unit #Square

Feet

SquareFeet

%

Lease Commence

Date

LeaseExpiration

DateLease Payment

Month Year Rent Per

SQ FT

Future Rent Bumps

Date Annual PSF

GROUND FLOOR

Panther Salon 4,180 29.29% 11/1/2017 10/31/2023 $7,489 $89,870 $21.50

11/1/2019 92,587.00 $22.15

11/1/2020 95,345.80 22.81

11/1/2021 98,188.20 23.49

11/1/2022 101,156.00 24.20

Signature Cuffs, LLC

550 3.85% 7/1/2017 9/1/2019 1,000 12,000 21.82

One Pytchblack 1,954 13.69% 3/1/2017 5/31/2022 3,582 42,988 22.00

6/1/2019 44,942.00 $23.00

6/1/2020 45,919.00 23.50

6/1/2021 46,896.00 24.00

Shinjuku 1,475 10.34% 11/1/2017 2/28/2024 3,319 39,825 27.00

3/1/2019 42,774.96 29.00

3/1/2020 47,196.00 32.00

3/1/2021 48,672.00 33.00

3/1/2022 50,148.00 34.00

3/1/2023 51,624.00 35.00

SUBTOTAL 8,159 184,683

SECOND FLOOR LOFTS

Leased 201 1,098 7.70% 8/1/2017 6/30/2019 1,995 23,940 21.84

Leased 205 753 5.28% 8/1/2018 7/31/2019 1,450 17,400 23.16

Leased 209 1,658 11.62% 4/1/2018 3/31/2019 2,150 25,800 15.60

Available 213 1,521 10.66% 2,450 - -

Leased 217 1,082 7.58% 4/1/2018 3/31/2019 1,595 19,140 17.64

SUBTOTAL 6,112 86,280

TOTALS 14,271 270,963

RENT ROLL

* Loft rents are gross lease rates net of utilities

*

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F I N A N C I A L A N A L Y S I S

CASH FLOW PROJECTION

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F I N A N C I A L A N A L Y S I S

201 Main StreetSuite 500

Fort Worth, Texas 76102

www.jll.com

Sales Contact

Ryan MatthewsExecutive Vice President(817) 334-8100ryan.matthews@am.jll.com

Financing Contact

Taylor CoyVice President(817) 334-8151taylor.coy@am.jll.com

701 W Magnolia