OFFERING MEMORANDUM - LoopNet€¦ · Real Estate Taxes $36,828 $4.06 Insurance $3,084 $0.34 Common...

P H I L I P L E V Y972.755.5225SENIOR MANAGING [email protected]

OFFERING MEMORANDUM

2

PROPERTY INFORMATION 3

Executive Summary 4

Property Description 5

Complete Highlights 6

Additional Photos 7

LOCATION INFORMATION 8

Regional Map 9

Location Maps 10

Aerial Maps 11

Aerial Maps 12

Aerial Maps 13

Aerial Maps 14

FINANCIAL ANALYSIS 15

Financial Summary 16

Income & Expenses 17

Rent Roll 18

Tenant Profiles 19

Tenant Profiles 20

DEMOGRAPHICS 21

Demographics Map & Report 22

IABS 23

Back 4

ContentsConfidentiality & Disclaimer

The information contained in the following Marketing Brochure is proprietary and strictlyconfidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichapand should not be made available to any other person or entity without the written consent ofMarcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverifiedinformation to prospective purchasers, and to establish only a preliminary level of interest in thesubject property. The information contained herein is not a substitute for a thorough duediligence investigation. Marcus & Millichap has not made any investigation, and makes nowarranty or representation, with respect to the income or expenses for the subject property, thefuture projected financial performance of the property, the size and square footage of theproperty and improvements, the presence or absence of contaminating substances, PCB's orasbestos, the compliance with State and Federal regulations, the physical condition of theimprovements thereon, or the financial condition or business prospects of any tenant, or anytenant’s plans or intentions to continue its occupancy of the subject property. The informationcontained in this Marketing Brochure has been obtained from sources we believe to be reliable;however, Marcus & Millichap has not verified, and will not verify, any of the information containedherein, nor has Marcus & Millichap conducted any investigation regarding these matters andmakes no warranty or representation whatsoever regarding the accuracy or completeness of theinformation provided. All potential buyers must take appropriate measures to verify all of theinformation set forth herein.

Non-Endorsement Notice

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant orlessee identified in this marketing package. The presence of any corporation’s logo or name is notintended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporationof Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commerciallisting of Marcus & Millichap, and is solely included for the purpose of providing tenant lesseeinformation about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS

Shops at Garland3315 North President George Bush Highway, Garland, TX 75040

TABLE OF CONTENTS

Section 1 PROPERTY INFORMATION

4

OFFERING SUMMARY

Sale Price: $3,137,000

Cap Rate: 6.5%

NOI: $203,932

Lot Size: 2.4 Acres

Year Built: 1999

Building Size: 9,062

Price / SF: $346.17

Marcus & Millichap is pleased to present the opportunity to acquire a stabilized 9,062-square foot, two-tenant retail center locatedin a major retail corridor in Garland, Texas.

PROPERTY OVERVIEW

DEMOGRAPHICS

1 MILE 3 MILES 5 MILES

Total Households 3,947 33,413 89,530

Total Population 11,721 99,341 266,537

Average HH Income $89,942 $87,033 $92,169


PROPERTY INFORMATION | EXECUTIVE SUMMARY

5

Marcus & Millichap is pleased to present the opportunity to acquire a stabilized 9,062-square foot, two-tenant

retail center located in a major retail corridor in Garland, Texas. Approximately 56 percent of the gross leasable

area is leased to Don Arturo’s Cocina and Cantina, and the remaining 44 percent is leased to Sleep Experts. Sleep

Experts has been at this location since 2005, and in 2017 extended their term for an additional ten years. Don

Arturo’s is a new 10-year lease that includes three percent annual rent escalations. Both leases are triple-net and

have options for renewal that include rent increases. Constructed in 1999, the building is situated on a large

2.4-acre lot with a concrete parking lot. Landlord has invested in significant building updates recently, including all

new HVAC units, a new roof with a 10-year transferable warranty, and new parking lot striping. The parcel includes

room for a pre-approved 5,000-square foot retail building, providing future upside potential.

PROPERTY OVERVIEW

Shops at Garland is located on the south side of the President George Bush Turnpike (PGBT) near the intersection

with Lavon Drive, benefiting from high traffic counts of approximately 74,690 vehicles per day on PGBT and 42,000

vehicles per day on Lavon Drive. Shadow anchored by Kohl’s and The Home Depot, the property has multiple access

points from the turnpike feeder road, Lavon Drive, Naaman School Road, and Crist Road. The subject property is

well-positioned in a dense retail corridor consisting of numerous national and local tenants, including Hobby Lobby,

Mardel, Big Lots, Redline Athletics, Urban Air Trampoline Park, Spring Creek Barbeque, McDonald’s, Chili’s Grill

and Bar, Best Buy, Party City. PetCo, Half Price Books, Lowe’s Home Improvement, At Home, Firehouse Subs,

Christian Brothers Automotive, and others. Firewheel Town Center, a premier shopping, dining and entertainment

destination, is directly across PGBT and features over 125 retail stores including Dillard’s, Macy’s, AMC Theatres,

Barnes & Noble, and Dick’s Sporting Goods.

The city of Garland is in the heart of the Dallas-Fort Worth Metroplex, approximately 17 miles northeast of

Downtown Dallas. Garland is second only to the City of Dallas in Dallas County by population and has easy access

to downtown Dallas via public transportation, including two Dart Blue line stations and buses. While Garland is

known as a hub for fabrication and manufacturing jobs, healthcare, technology and wireless communication round

out the city’s economic diversity.

LOCATION OVERVIEW


PROPERTY INFORMATION | PROPERTY DESCRIPTION

6

SALE HIGHLIGHTS

• 100% Occupied, Two-Tenant Retail Strip Center in a Prime Retail Location | Out Parcel to

Kohl's and The Home Depot

• Sleep Experts has Been in the Center Since 2005 | Tenant Recently Exercised a Lease

Extension for an Additional 10 Years

• Don Arturo's Cocina and Cantina is a New 10-Year Lease with 3% Annual Rent Escalations

• Both Leases are Triple Net and have Options for Renewal with Rent Increases

• Recent Building Upgrades Include All New HVAC Units Replaced in 2017/2018, New Roof

Installed in 2018 with a 10-Year Transferable Warranty, and New Parking Lot Striping in 2018

• Situated on a Large 2.4-Acre Parcel | Land is Priced at $29 per Square Foot

• Plans for an Additional 5,000-Square Foot Retail Building have Already Been Approved by the

City, Providing Future Upside Potential

• Desirable Freeway Location off President George Bush Turnpike (PGBT) Near the Intersection

with Lavon Drive in a Dense Retail Trade Area | High Traffic Counts of Approximately 74,690

Vehicles per Day on PGBT and 43,000 Vehicles per Day on Lavon Drive

• Enjoys Excellent Freeway Visibility and Numerous Ingress and Egress Points from all

Surrounding Roads

• Surrounding Area has Excellent Demographics | Five-Mile Population is more than

266,500 Residents | Affluent Suburban Community with an Average Household

Income Exceeding $92,000

• Directly Across the Turnpike from Firewheel Town Center, a Shopping, Dining and

Entertainment Destination Featuring more than 125 Stores and Anchored by Dillard's, Macy's,

AMC Theatres, Barnes & Noble, and Dick's Sporting Goods


PROPERTY INFORMATION | COMPLETE HIGHLIGHTS


PROPERTY INFORMATION | SITE PLAN

7

Section 2 LOCATION INFORMATION

9

Garland, TX


LOCATION INFORMATION | REGIONAL MAP

1 0


LOCATION INFORMATION | LOCATION MAPS

1 1


LOCATION INFORMATION | AERIAL MAPS

1 2



1 3



1 4



Section 3 FINANCIAL ANALYSIS

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INVESTMENT OVERVIEW

Price $3,137,000

Price per SF $346.17

CAP Rate 6.5 %

Total Return (yr 1) $203,932

OPERATING DATA

Gross Income $276,880

Operating Expenses $72,948

Net Operating Income $203,932

FINANCING DATA

Down Payment $3,137,000

Loan Type All Cash


FINANCIAL ANALYSIS | FINANCIAL SUMMARY

INCOME SUMMARY PER SF

Base Rent $198,054 $21.86

Real Estate Taxes Reimbursement $36,828 $4.06

Insurance Reimbursement $3,084 $0.34

Common Area Maintenance Reimbursement $33,036 $3.65

Administrative Fee $5,878 $0.65

Gross Income $276,880 $30.55

EXPENSE SUMMARY PER SF

Real Estate Taxes $36,828 $4.06

Insurance $3,084 $0.34

Common Area Maintenance $33,036 $3.65

Gross Expenses $72,948 $8.05

Net Operating Income $203,932 $22.50

1 7


FINANCIAL ANALYSIS | INCOME & EXPENSES

TENANT

NAME

UNIT

NUMBER

UNIT

SIZE (SF)

% OF

GLA

LEASE

START

LEASE

END

ANNUAL

RENT

ESC

DATE

PRICE

PER YEAR

LEASE

TYPE OPTION

EXPENSE

REIMBURSEMENT

Don Arturo's Cocina & Cantina 01 5,062 55.86 8/01/18 7/31/28 $86,054 $17.00

$17.54

$18.07

$18.61

$19.17

$19.74

$20.33

$20.94

$21.57

$22.21

NNN (2) 5-Yr $3,690.78

Sleep Experts 02 4,000 44.14 1/01/06 12/31/27 $112,000 $28.00 NNN (2) 5-Yr $2,187.31

Totals/Averages 9,062 $198,054 $21.86 $5,878.09

1 8


FINANCIAL ANALYSIS | RENT ROLL

1 9

Lease Guarantor: Mattress Firm Inc.

Lease Type: Triple Net + 15% Admin Fee

Rent Commencement Date: January 1, 2006

Lease Expiration Date: December 31, 2027

Renewal Options: First Five-Year Option at $30.80

Second Five-Year Option at $33.88

OVERVIEW - SLEEP EXPERTS

• Awarded Consumer's Choice for Mattress Retailers 11 Years in a Row

• Has been Ranked in the Top 100 Places to Work by Dallas Morning News

• Website: www.sleepexperts.com

TENANT HIGHLIGHTS

Sleep Experts is a privately-owned mattress retailer in the Dallas–Fort Worth Metroplex

that was purchased by Mattress Firm in 2014, currently operating 36 Sleep Experts

locations throughout the Dallas-Fort Worth Metroplex. Mattress Firm has the largest

geographic footprint in the United States among multi-brand mattress retailers, with over

2,500 company-operated and franchised stores across 49 states.

TENANT SUMMARY

Premises shall be used for the primary sale of mattresses, box springs, beds, bed frames,

adjustable beds, futons, sofas, sofa sleepers, bedroom furniture, related bedding products,

and related household goods and other ancillary items.

SPECIFIC USE


FINANCIAL ANALYSIS | TENANT PROFILES

2 0

Ownership: Private Company

Number Of Locations: One

Lease Type: Triple Net + 20% Admin Fee

Rent Commencement Date: August 1, 2018

Lease Expiration Date: July 31, 2028

Renewal Options: (2) 5-Year Renewals with 3% Annual Increases

OVERVIEW - DON ARTURO'S

• Restaurant is Open Seven Days a Week

• Catering Services Available

• Website: http://donarturos.com

TENANT HIGHLIGHTS

Don Arturo’s Cocina Y Cantina is a single-unit Mexican restaurant and bar in Garland, Texas.

Before moving to the Dallas area, the Guzman family owned and operated three of the La

Pinata Mexican Restaurants in California, which served as a favorite Bay Area destination

for great food, service, and a festive ambiance for more than 20 years.

TENANT SUMMARY

Premises shall be used as a full-service Mexican restaurant serving alcoholic beverages.

SPECIFIC USE


FINANCIAL ANALYSIS | TENANT PROFILES

Section 4 DEMOGRAPHICS

2 2

POPULATION 1 MILE 3 MILES 5 MILES

Total population 11,721 99,341 266,537

Median age 34.7 34.7 34.3

Median age (Male) 32.8 34.0 33.5

Median age (Female) 37.2 35.7 35.0

HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES

Total households 3,947 33,413 89,530

# of persons per HH 3.2 3.1 3.1

Average HH income $89,942 $87,033 $92,169

Average house value $170,957 $160,503 $175,017

* Demographic data derived from 2010 US Census


DEMOGRAPHICS | DEMOGRAPHICS MAP & REPORT

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 the 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:

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

Information available at www.trec.texas.gov Regulated by the Texas Real Estate Commission IABS 1-0

11-2-2015

Licensed Broker /Broker Firm Name or Primary Assumed Business Name License No. Email Phone

Designated Broker of Firm License No. Email Phone

Licensed Supervisor of Sales Agent/Associate License No. Email Phone

Sales Agent/Associate’s Name License No. Email Phone

Buyer/Tenant/Seller/Landlord Initials Date

P H I L I P L E V YSenior Managing DirectorDallas Office

972.755.5225 Office817.380.1153 [email protected]: TX 0522087

5001 Spring Valley RoadDallas, TX 75244

OFFERING MEMORANDUM - LoopNet€¦ · Real Estate Taxes $36,828 $4.06 Insurance $3,084 $0.34 Common...

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