OFFERING MEMORANDUM · Carrollton. She then opened a private practice in Keller with a partner...

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

LOCATION INFORMATION 7

Regional Map 8

Location Maps 9

Aerial Map 10

Aerial Map 11

Aerial Map 12

FINANCIAL ANALYSIS 13

Financial Summary 14

Income & Expenses 15

Rent Roll 16

Tenant Profiles 17

Tenant Profiles 18

DEMOGRAPHICS 19

Demographics Report 20

Demographics Map 21

IABS 22

Back 3

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

Domino's Pizza | Dentist3380 Long Prairie Road, Flower Mound, TX 75022

TABLE OF CONTENTS

Section 1 PROPERTY INFORMATION

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OFFERING SUMMARY

Sale Price: $1,950,000

Cap Rate: 6.37%

NOI: $124,215

Lot Size: 0.97 Acres

Year Built: 2005

Building Size: 4,550

Price / SF: $428.57

Marcus & Millichap is pleased to offer the opportunity to acquire a 4,550-square foot, two-tenant retail center in the highly affluentDallas-Fort Worth suburb of Flower Mound, Texas.

PROPERTY OVERVIEW

DEMOGRAPHICS

1 MILE 3 MILES 5 MILES

Total Households 4,007 30,224 62,387

Total Population 11,945 89,805 178,164

Average HH Income $138,699 $125,766 $111,955


PROPERTY INFORMATION | EXECUTIVE SUMMARY

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Marcus & Millichap is pleased to offer the opportunity to acquire a 4,550-square foot, two-tenant retail center in

the highly affluent Dallas-Fort Worth suburb of Flower Mound, Texas. Fully stabilized, the center consists of

Domino’s Pizza and Dr. Lauri Barge, DDS. Both tenants have been in the center since the building was constructed

in 2005, providing an established tenant base. Both leases are triple-net and include options for renewal. Domino's

has a strong guarantee from one of the top franchisees in the nation based on sales and service. The dental lease is

personally guaranteed by Dr. Barge. The building is situated on a 0.97-acre lot and has a concrete parking lot.

PROPERTY OVERVIEW

The subject property is located on Long Prairie Road approximately one half of a mile south of the intersection with

Cross Timbers Road (FM 1171). Long Prairie Road is a six-lane thoroughfare with traffic counts of approximately

34,000 vehicles per day. National and regional retailers in the area include Kroger, Life Time Fitness, Kohl’s, Dollar

Tree, Sprouts Farmers Market, Plato’s Closet, Great Clips, Hand & Stone Massage, School of Rock, Jersey Mike’s

Subs, FedEx, Verizon, GNC, Einstein Bros. Bagels, Nothing Bundt Cakes, Regions Bank, Dickey’s Barbecue Pit,

Domino’s Pizza, Sherwin-Williams, Market Street grocery store, Floyd’s 99 Barbershop, Mooyah Burgers, Texas

Roadhouse, La Madeleine French Bakery & Café, Elements Massage, and others. The surrounding area has

excellent demographics; the average household income within one mile of the property is $138,700 and $111,955

within five miles. The area also has a dense residential population of more than 178,160 people within five miles.

Centrally located in North Texas, Flower Mound is a family-oriented community that prides itself on maintaining a

small-town atmosphere while embracing and fostering a dynamic economic development environment. After

experiencing unprecedented residential growth in the 1990’s, the Town now actively promotes a burgeoning

commercial development scene centered around the Lakeside Business District, located on the North Shore of Lake

Grapevine, and the Denton Creek District, located in the growing I-35 West corridor.

LOCATION OVERVIEW


PROPERTY INFORMATION | PROPERTY DESCRIPTION

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SALE HIGHLIGHTS

• Fully Stabilized Two-Tenant Retail Center

• Both Tenants have Been in the Center Since Construction in 2005

• Both Leases are Triple-Net and Include Options for Renewal

• Dental Lease has a Personal Guarantee | Tenant Contributed $400,000 in

Finish-Out Improvements

• Domino's has a Strong Franchisee Guarantee | Tenant is One of Only 13

Franchisees in the Country to be Named to Domino's Exclusive Chairman's

Circle | One of the Top Franchisees in the Nation for Sales and Service | 10 Unit

Guarantee | Franchisee Operates a Total of 19 Units

• Building is Situated on a 0.97-Acre Parcel with a Concrete Parking Lot |

Domino's Suite has a Drive-Through Window

• Located on Long Prairie Road Near the Intersection with Cross Timbers Road |

Traffic Counts are Approximately 34,000 Vehicles per Day in Front of the

Property

• Numerous National and Regional Tenants in the Area, Including Kroger, Life

Time Fitness, Kohl's, Dollar Tree, Sprouts, and More

• Highly Affluent Surrounding Area | One-Mile Average Household Income is

$138,700 | Three-Mile Average Household Income is $125,766 | Five-Mile

Average Household Income is $111,955

• Densely Populated with more than 178,000 Residents Within Five Miles of the

Property


PROPERTY INFORMATION | COMPLETE HIGHLIGHTS

Section 2 LOCATION INFORMATION

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Domino's Pizza | Dentist


LOCATION INFORMATION | REGIONAL MAP

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LOCATION INFORMATION | LOCATION MAPS

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LOCATION INFORMATION | AERIAL MAP

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Section 3 FINANCIAL ANALYSIS

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INVESTMENT OVERVIEW

Price $1,950,000

Price per SF $428.57

CAP Rate 6.37 %

Total Return (yr 1) $124,215

OPERATING DATA

Gross Income $157,206

Operating Expenses $32,991

Net Operating Income $124,215

FINANCING DATA

Down Payment $1,950,000

Loan Type All Cash


FINANCIAL ANALYSIS | FINANCIAL SUMMARY

*Base Rent is based on the future base rent of $124,215 that occurs on January 1, 2019. Current base rent is $121,940.

INCOME SUMMARY PER SF

*Base Rent $124,215 $27.30

Real Estate Taxes Reimbursements $20,843 $4.58

Insurance Reimbursements $2,840 $0.62

Common Area Maintenance Reimbursements $9,308 $2.05

Gross Income $157,206 $34.55

EXPENSE SUMMARY PER SF

Real Estate Taxes $20,843 $4.58

Insurance $2,840 $0.62

Utilities $4,542 $1.00

Lawn Care $2,312 $0.51

Professional Fees $1,755 $0.39

Repairs $699 $0.15

Gross Expenses $32,991 $7.25

Net Operating Income $124,215 $27.30

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FINANCIAL ANALYSIS | INCOME & EXPENSES

TENANT

NAME

PERSONAL

GUARANTEE

UNIT

SIZE (SF)

% OF

GLA

LEASE

START

LEASE

END

ANNUAL

RENT

ESC

DATE

PRICE

PER YEAR

LEASE

TYPE OPTION

EXPENSE

REIMBURSEMENT

Domino's Pizza 1,560 34.29 8/01/05 12/31/20 $39,000 $25.00 NNN (2) 5-Yr $11,312.61

Dr. Lauri Barge, DDS Yes 2,990 65.71 4/08/05 12/31/20 $85,215

1/1/2020

$28.50

$28.75

NNN (2) 5-Yr $21,678.39

Totals/Averages 4,550 $124,215 $27.30 $32,991.00 $32,991.00

*Base Rent is based on the future base rent of $124,215 that occurs on January 1, 2019. Current base rent is $121,940.

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FINANCIAL ANALYSIS | RENT ROLL

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Company: Domino's Pizza

Guarantor: G4 Mgmt Ltd.

Lease Type: Triple-Net

Options For Renewal: (2) 5-Year

Locations: Guarantor of 10 Units

Operator of 19 Total Units

Website: www.dominos.com

OVERVIEW

• Domino's has a Strong Franchisee Guarantee

• Tenant is One of Only 13 Franchisees in the country to be Named to Domino's ExclusiveChairman's Circle

• One of the Top Franchisees in the Nation for Sales and Service

TENANT HIGHLIGHTS

Founded in 1960, Domino's is the recognized world leader in pizza delivery operating a

network of company-owned and franchise-owned stores in the United States and

international markets. Domino's is a company of exceptional people on a mission to be the

best pizza delivery company in the world.

The corporation is headquartered at the Domino's Farms Office Park in Ann Arbor,

Michigan, and is publicly traded on the New York Stock Exchange (DPZ). In February 2018,

the chain became the largest pizza seller worldwide in terms of sales.

TENANT SUMMARY


FINANCIAL ANALYSIS | TENANT PROFILES

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Tenant: Dr. Lauri Barge, DDS

Guarantor: Personal Guarantee

Lease Type: Triple-Net

Options For Renewal: (2) 5-Year

Locations: 1

Website: www.flowermoundsmiles.com

OVERVIEW

• Extensive Menu of Dental Services Offered

• Nominated "Best of Denton County" by The News Connection Six Years in a Row

• Awarded "Texas Super Dentist" by her Peers in Texas Monthly Numerous Times

• Tenant Contributed $400,000 in Finish-Out Improvements

TENANT HIGHLIGHTS

Dr. Lauri Barge has served residents of North Texas with contemporary, comfortable

dentistry for 20 years. As a graduate of University of Texas at Arlington and Baylor College

of Dentistry, Dr. Barge completed a hospital residency before practicing as an associate in

Carrollton. She then opened a private practice in Keller with a partner dentist. Now in

Flower Mound, Dr. Barge leads an excellent team of dental professionals in her own private

practice. At the state-of-the-art facility, patients of all ages find one-on-one care and clinical

excellence in all aspects of dentistry.

As a vested member of the Dallas-Fort Worth dental community, Dr. Barge holds

membership in the American Dental Association, Texas Dental Association, Dental

Organization for Conscious Sedation, American Academy of Cosmetic Dentistry, and Texas

Academy of Cosmetic Dentistry.

TENANT SUMMARY


FINANCIAL ANALYSIS | TENANT PROFILES

Section 4 DEMOGRAPHICS

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1 MILE 3 MILES 5 MILES

Total population 11,945 89,805 178,164

Median age 35.8 35.3 35.5

Median age (Male) 35.4 35.2 35.5

Median age (Female) 35.9 35.8 35.8

Total households 4,007 30,224 62,387

Total persons per HH 3.1 3.1 2.9

Average HH income $138,699 $125,766 $111,955

Average house value $255,396 $277,151 $267,481

Total Population - White 8,661 66,342 141,412

% White 72.5% 73.9% 79.4%

Total Population - Black 191 3,793 9,404

% Black 1.6% 4.2% 5.3%

Total Population - Asian 428 5,518 10,780

% Asian 3.6% 6.1% 6.1%

Total Population - Hawaiian 0 57 183

% Hawaiian 0.0% 0.1% 0.1%

Total Population - American Indian 12 193 399

% American Indian 0.1% 0.2% 0.2%

Total Population - Other 173 1,853 4,941

% Other 1.4% 2.1% 2.8%

Total Population - Hispanic 884 9,352 26,187

% Hispanic 7.4% 10.4% 14.7%

* Demographic data derived from 2010 US Census


DEMOGRAPHICS | DEMOGRAPHICS REPORT

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POPULATION 1 MILE 3 MILES 5 MILES

Total population 11,945 89,805 178,164

Median age 35.8 35.3 35.5

Median age (Male) 35.4 35.2 35.5

Median age (Female) 35.9 35.8 35.8

HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES

Total households 4,007 30,224 62,387

# of persons per HH 3.1 3.1 2.9

Average HH income $138,699 $125,766 $111,955

Average house value $255,396 $277,151 $267,481

ETHNICITY (%) 1 MILE 3 MILES 5 MILES

Hispanic 7.4% 10.4% 14.7%

RACE (%)

White 72.5% 73.9% 79.4%

Black 1.6% 4.2% 5.3%

Asian 3.6% 6.1% 6.1%

Hawaiian 0.0% 0.1% 0.1%

American Indian 0.1% 0.2% 0.2%

Other 1.4% 2.1% 2.8%

* Demographic data derived from 2010 US Census


DEMOGRAPHICS | DEMOGRAPHICS MAP

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 · Carrollton. She then opened a private practice in Keller with a partner...

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Transcript of OFFERING MEMORANDUM · Carrollton. She then opened a private practice in Keller with a partner...