MULTI-TENANT OFFICE BUILDING · INNI NI 5 IIN INNI NI MULTI-TENANT OFFICE BUILDING - CARROLLTON, TX...

CARROLLTON, TX(DALLAS MSA)

MULTI-TENANT OFFICE BUILDING

2F INANCIAL ANALYSIS

MULTI-TENANT OFFICE BUILDING - CARROLLTON, TXSUMMARY

OFFERING SUMMARY

Price $3,910,000

Cap Rate 8.00%

Net Operating Income $312,574

Occupancy 100%

Year Built 1986

Gross Leasable Area 27,099 SF

Lot Size 2.096 Acres

Multi-Tenant Office Building1405-1415 Halsey WayCarrollton, TX75007


MULTI-TENANT OFFICE BUILDING - CARROLLTON, TXPRICING & FINANCIAL ANALYSIS

Suite Tenant SQ FT % of Sqft Start End Term Begin Annual Rent PSF Options Lease Type

307 A-Max Insurance 5,443 20.1% 2/1/2017 1/31/2019 Yr 1-2 2/1/2017 $64,772 $11.90 1 x 3 Base Year

Option 1: 3-5 2/1/2019 FMV

300 Fiberlight 7,688 28.4% 6/1/2013 12/15/2027 Yr 1-7 6/1/2013 $43,407 $5.65 1 x 3 Base Year

Yr 8-10 10/1/2020 $44,829 $5.83

Yr 11 5/16/2022 $109,170 $14.20

Yr 12 5/16/2023 $112,475 $14.63

Yr 13 5/16/2024 $115,858 $15.07

Yr 14 5/16/2025 $119,318 $15.52

Yr 15 5/16/2026 $122,931 $15.99

Option 1: 16-19 12/16/2027 FMV

314 Insurance Technologies Corp 13,968 51.5% 9/1/2014 1/31/2022 Yr 1-8 9/1/2014 $259,148 $18.55 2 x 5 Base Year

Option 1: 9-13 2/1/2022 FMV

Option 2: 14-19 2/1/2027 FMV

Notes: In 2022, ITC is giving back to Fiberlight - unit 304 (4,531 SF) Fiberlight Sq Ft represents the combined total 7,688 Sq Ft (3,157 + 4,531)



PROJECTED INCOME & EXPENSES CURRENT PSF

Base Rent - Occupied Space 100% $368,592 $13.60

GROSS POTENTIAL RENT $368,592 $13.60

Expense Reimbursements

CAM Recoveries $29,852 $1.10

Management Fee Recoveries $12,000 $0.44

Insurance Recoveries $11,018 $0.41

Real Estate Tax Recoveries $62,903 $2.32

Less Base Year Stops ($46,020) ($1.70)

Total Expense Reimbursements $69,753 $2.57

EFFECTIVE GROSS REVENUE $438,345 $16.18

Operating Expenses

Total CAM ($29,852) ($1.10)

Management Fee 2.74% ($12,000) ($0.44)

Total Insurance ($11,018) ($0.41)

Total Real Estate Taxes ($72,901) ($2.69)

Total Recoverable Expenses ($125,772) ($4.64)

Net Operating Income $312,574 $11.53

EXPENSES CURRENT PSF

Real Estate Taxes $72,901 $2.69

Insurance $11,018 $0.41

CAM

Accounting Fees $8,000 $0.30

Landscaping $5,386 $0.20

Property Maintenance $3,578 $0.13

RE Tax Protest Fee $4,327 $0.16

Repairs and Maintenance $2,377.54 $0.09

Utilities - Electricity $1,196.08 $0.04

Utilities - Water $2,928.04 $0.11

Waste Removal $2,060.07 $0.08

Total CAM $29,852 $1.10

Management Fee 2.74% $12,000 $0.44

Total Expenses $125,772 $4.64



PROPERTY ADDRESS CITY STATE PRICE NOI CAP RATE

1 Stonebridge Pediatrics 5561 Virginia Pkwy McKinney TX $3,800,000 $256,477 6.75%

2 McKinney Two-Tenant Strip 1980 N Central Expy McKinney TX $2,450,000 $165,459 6.75%

3 Cash America Pawn 5016 Lemmon Ave Dallas TX $2,025,000 $106,260 5.25%

4 BlueWave Express Wash 1665 Eldridge Pkwy Houston TX $5,050,000 $341,000 6.75%

5 Christian Brothers Automotive 7937 Westheimer Rd Houston TX $3,080,000 $184,677 6.00%

6 Christian Brothers Automotive 10010 McMullen Rd Brandon FL $2,980,000 $178,946 6.00%

7 Kirby’s Steakhouse 3305 E State Hwy 114 Southlake TX $4,080,000 $265,000 6.50%

8 BlueWave Express Wash 9801 Jones Rd Houston TX $4,400,000 $297,000 6.75%

9 Target Strip on LBJ 5631 LBJ Fwy Dallas TX $4,425,000 $399,000 (1) 9.00% (1)

10 Bexar County Offi ce Building 2711 SE Loop 410 San Antonio TX $3,790,000 (2) $283,092 8.00%

11 ABA North Texas 6200 Virginia Pkwy McKinney TX $1,830,000 $127,818 7.00%

12 Multi-Tenant Offi ce Building 1405-1415 Halsey Way Carrollton TX $3,910,000 $312,574 8.00%

13 Little Sunshine’s Playhouse 600 Zena Rucker Rd Southlake TX $3,960,000 $267,000 6.75%

14 Little Sunshine’s Playhouse 1501 Lohmans Crossing Lakeway TX $4,630,000 $312,300 6.75%

15 Hooters 4384 Sherwood Way San Angelo TX $3,480,000 $200,000 5.75%

16 Little Sunshine’s Playhouse 8030 Branch Crossing The Woodlands TX $5,325,000 $359,349 6.75%

17 Car Spa 5028 W Park Blvd Plano TX $6,740,000 $455,000 6.75%

18 Service King 4205 W Plano Pkwy Plano TX $6,785,000 $424,000 6.25%

19 Fireside Pies 1285 S Main St Grapevine TX $2,640,000 $178,196 6.75%

20 Winewood Grill 1265 S Main St Grapevine TX $4,225,000 $285,000 6.75%

TOTAL $79,605,000 $5,398,148 6.76%

PORTFOLIO SUMMARYThis Property may be purchased individually or as part of a portfolio

(1) NOI and Cap Rate is based on Pro Forma(2) Sale price includes $250,000 of amortized T.I.

6PROPERTY DESCRIPTION

MULTI-TENANT OFFICE BUILDING - CARROLLTON, TXTENANT OVERVIEW

TENANT SUMMARY

Company A-Max Insurance

Ownership Private

Number of Locations 100

Years in Business 16

Headquarters Dallas, TX

Website www.amaxinsurance.com

TENANT SUMMARY

Company Fiberlight

Ownership Private



Headquarters Alpharetta, GA

Website www.fiberlight.com

Fiberlight is an industry-leading expert in anticipating the various complexities associated with planning, engineering and installing fiber optic networks. They are a 20-year telecommunications veteran and are led by some of the industry’s most well-respected experts.

A-MAX Auto Insurance is an industry leader that specializes in providing low cost insurance to thousands of Texas residents and businesses. A-MAX is dedicated to exceeding expectations by continuing to set forth commitment to provide excellent service, affordable rates, and convenient locations.

TENANT SUMMARY

Company ITC

Ownership Private



Headquarters Carrollton, TX

Website www.getitc.com

Insurance Technologies Corporation (ITC) is a leading provider of marketing, rating and management software and services to the insurance industry, including independent agents and insurance carriers. ITC helps its customers across the United States grow their businesses and become more efficient through the philosophy of providing quality software and services.


MULTI-TENANT OFFICE BUILDING - CARROLLTON, TXINVESTMENT HIGHLIGHTS

Estimated Vehicles Per Day

Average Household Income

Population Growth 2010-2018

Population: 5 Mile Radius

348,59721.92%

$125,6868,967

S N A P S H O T• 100% Occupied Multi-Tenant Office Building

• Great Value Add Opportunity with 50% of Center at Below-Market Rents

• Recently Completed Renovation Including New HVAC Systems

• Located at the Intersection of President George Bush Turnpike and Interstate 35E – Traffic Counts Exceed 121,000 and 145,000 Vehicles per Day Along These Highways Respectively

• Densely Populated Area – Population in Five-Mile Radius is Nearly 350,000 People with 11% Growth Projected in the Next Few Years

• Average Household Income in a One-Mile Radius is 1.66x the National Average

8MARKET OVERVIEW

MULTI-TENANT OFFICE BUILDING - CARROLLTON, TXAERIAL MAP

Dic

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8,967 VPD

145,142 VPD

121,447 VPD


MULTI-TENANT OFFICE BUILDING - CARROLLTON, TXLOCAL MAP

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820 DALLASFORT WORTH ARLINGTON

WEATHERFORDIRVING

GRAPEVINE

FLOWER MOUND

CARROLLTON GARLAND

RICHARDSON

PLANO

MESQUITE

ALLEN

ROCKWALL

MCKINNEYDENTON

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10MARKET OVERVIEW

MULTI-TENANT OFFICE BUILDING - CARROLLTON, TXMARKET 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 11.2 Million people as of the 2016 U.S. Census. The metropolitan economy is the fourh largest in the United States, with a 2016 real GDP just under $978 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 9 Fortune 500 companies, and the DFW region as a whole has 22.

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.

Dallas - Fort Worth, TX

2nd

3rd

22

10K

4th

Texas, Fastest Growing Economy in the U.S. (24/7 Wall St.)

Fastest Growing Cities in the U.S. (Forbes)

O V E R V I E W Q U I C K S TAT S

Fortune 500 Companies Call DFW Home (Fortune)

Home to over 10,000 corporate headquarters, making it the largest concentration in the U.S.

Largest Metropolitan Area in the United States

11MARKET OVERVIEW

MULTI-TENANT OFFICE BUILDING - CARROLLTON, TXDEMOGRAPHIC STATISTICS

Demographic data © CoStar 2017

1 Mile 3 Mile 5 Mile

Population:2023 Projection 7,546 116,141 348,5972018 Estimate 6,690 104,053 312,9552010 Census 5,487 88,115 260,986Growth 2018-2023 12.80% 11.62% 11.39%Growth 2010-2018 21.92% 18.09% 19.91%2018 Population Hispanic Origin 790 26,756 80,701

2018 Population by Race:White 4,359 69,465 208,429Black 399 10,267 40,936Am. Indian & Alaskan 33 755 2,495Asian 1,737 20,843 52,774Hawaiian & Pacific Island 1 79 256Other 162 2,644 8,065U.S. Armed Forces: 4 29 105

Households:2023 Projection 2,694 41,905 136,5632018 Estimate 2,397 37,531 122,7562010 Census 1,999 31,656 104,335Growth 2018 - 2023 12.39% 11.65% 11.25%Growth 2010 - 2018 19.91% 18.56% 17.66%Owner Occupied 1,906 22,814 59,636Renter Occupied 491 14,716 63,120

2017 Avg Household Income (National Avg - $75,558) $125,686 $104,837 $97,396 2017 Med Household Income (National Avg - $53,889) $105,997 $80,882 $70,591 2018 Households by Household Inc:

<$25,000 195 3,492 14,874$25,000 - $50,000 317 7,066 26,446$50,000 - $75,000 288 6,975 23,696$75,000 - $100,000 322 5,236 15,522$100,000 - $125,000 321 4,096 12,054$125,000 - $150,000 266 2,989 7,997$150,000 - $200,000 342 3,888 10,372$200,000+ 347 3,788 11,793

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.

CONFIDENTIALITY AGREEMENT

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

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.

Net Lease Disclaimer

TYPES OF REAL ESTATE LICENSE HOLDERS:• ABROKERisresponsibleforallbrokerageactivities,includingactsperformedbysalesagentssponsoredbythebroker.• ASALESAGENT mustbesponsoredbyabrokerandworkswithclientsonbehalfofthebroker.

A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents):• Puttheinterestsoftheclientaboveallothers,includingthebroker’sowninterests;• Informtheclientofanymaterialinformationaboutthepropertyortransactionreceivedbythebroker;• Answertheclient’squestionsandpresentanyoffertoorcounter-offerfromtheclient;and• Treatallpartiestoarealestatetransactionhonestlyandfairly.

A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:

AS AGENT FOR OWNER (SELLER/LANDLORD): Thebrokerbecomesthepropertyowner’sagentthroughanagreementwiththeowner,usuallyinawrittenlistingtosellorpropertymanagementagreement.Anowner’sagentmustperformthebroker’sminimumdutiesaboveandmustinformtheownerofanymaterialinformationaboutthepropertyortransactionknownbytheagent,includinginformationdisclosedtotheagentorsubagentbythebuyerorbuyer’sagent.

AS AGENT FOR BUYER/TENANT: Thebrokerbecomes thebuyer/tenant’sagentbyagreeing to represent thebuyer,usually throughawrittenrepresentationagreement.Abuyer’sagentmustperformthebroker’sminimumdutiesaboveandmustinformthebuyerofanymaterialinformationaboutthepropertyortransactionknownbytheagent,includinginformationdisclosedtotheagentbythesellerorseller’sagent.

AS AGENT FOR BOTH - INTERMEDIARY: Toactasanintermediarybetweenthepartiesthebrokermustfirstobtainthewrittenagreementofeachpartytothetransaction.Thewrittenagreementmuststatewhowillpaythebrokerand,inconspicuousboldorunderlinedprint,setforththebroker’sobligationsasanintermediary.Abrokerwhoactsasanintermediary:• Musttreatallpartiestothetransactionimpartiallyandfairly;• May,withtheparties’writtenconsent,appointadifferentlicenseholderassociatedwiththebrokertoeachparty(ownerand• buyer)tocommunicatewith,provideopinionsandadviceto,andcarryouttheinstructionsofeachpartytothetransaction.• Mustnot,unlessspecificallyauthorizedinwritingtodosobytheparty,disclose:

ӽ thattheownerwillacceptapricelessthanthewrittenaskingprice;ӽ thatthebuyer/tenantwillpayapricegreaterthanthepricesubmittedinawrittenoffer;andӽ anyconfidentialinformationoranyotherinformationthatapartyspecificallyinstructsthebrokerinwritingnottodisclose,unlessrequiredtodosobylaw.

AS SUBAGENT: Alicenseholderactsasasubagentwhenaidingabuyerinatransactionwithoutanagreementtorepresentthebuyer.Asubagentcanassistthebuyerbutdoesnotrepresentthebuyerandmustplacetheinterestsoftheownerfirst.

TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH:• Thebroker’sdutiesandresponsibilitiestoyou,andyourobligationsundertherepresentationagreement.• Whowillpaythebrokerforservicesprovidedtoyou,whenpaymentwillbemadeandhowthepaymentwillbecalculated.

LICENSE HOLDER CONTACT INFORMATION: Thisnoticeisbeingprovidedforinformationpurposes.Itdoesnotcreateanobligationforyoutousethebroker’sservices.Pleaseacknowledgereceiptofthisnoticebelowandretainacopyforyourrecords.

Texas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

Regulated by the Texas Real Estate Commission Information available at www.trec.texas.gov

Information About Brokerage Services

IABS1-0

exclusively listed

469.844.8880 | STRIVERE.COM

MULTI-TENANT OFFICE BUILDING · INNI NI 5 IIN INNI NI MULTI-TENANT OFFICE BUILDING - CARROLLTON, TX...

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