Turner Plaza Offering Memorandum DRAFT€¦ · ABILENE, TX 79606 OFFERING MEMORANDUM MARCH 2017...

TURNER PLAZA SHOPPING CENTER 3329-3351 TURNER DRIVE

ABILENE, TX 79606

OFFERING MEMORANDUM

MARCH 2017

EXCLUSIVELY LISTED BY MATT BANDY & DUB JOHNSON

Matt Bandy Dub Z. Johnson Bandy Investments Dub Z. Johnson Real Estate Services

8525 Ferndale Rd., Suite #204 4112 College Hills Blvd #205 Dallas, TX 75238 San Angelo, TX 76904

w. (214) 522-2102 c. (214) 718-9635 w. (325) 944-8312 c. (325) 277-2013 [email protected] [email protected]

TURNER PLAZA SHOPPING CENTER 3329-3351 TURNER DRIVE ABILENE, TX

TABLE OF CONTENTS

I. INVESTMENT SUMMARY II. INVESTMENT HIGHLIGHTS III. PROPERTY DETAILS

IV. SELECT TENANT OVERVIEWS V. AREA MAP

VI. SITE MAP VII. PROPERTY PICTURES VIII. RENT ROLL

NOTES TO RENT ROLL

IX. OPERATING STATEMENT NOTES TO OPERATING STATEMENT

X. BANDY INVESTMENTS DISCLAIMER

TREC AGENCY DISCLOSURE


INVESTMENT SUMMARY THE OFFERING Bandy Investments is offering for sale 100% fee simple interest in the

Turner Plaza Shopping Center located in Abilene, TX. OWNERSHIP Turner Plaza Drive, Ltd. PURCHASE PRICE $4,034,359 ($137.77/SF) RENTABLE AREA 29,283 square feet 2017 PRO FORMA NOI $292,491 PRO FORMA CAP RATE 7.25% TERMS All cash. The property is available debt free. OFFER SUBMISSION Offers may be sent via Letters of Intent to either of the following:

Matt Bandy Dub Z. Johnson Bandy Investments Dub Z. Johnson Real Estate Services

8525 Ferndale Rd., Suite #204 4112 College Hills Blvd #205 Dallas, TX 75238 San Angelo, TX 76904

w. (214) 522-2102 c. (214) 718-9635 w. (325) 944-8312 c. (325) 277-2013 [email protected] [email protected]


INVESTMENT HIGHLIGHTS

DYNAMIC LOCATION This offering presents an investor the opportunity to acquire a stabilized

cash flowing multi-tenant strip shopping center in Abilene, TX anchored by AT&T Wireless, Fuzzy’s Tacos, and Smile Brands.

TRADE AREA AMENITIES Trade area anchors include Target and Lowe’s Home Improvement along-

side numerous fast food and fast-casual retailers. The surrounding Abilene market is home to Abilene Christian University, Hardin-Simmons University, and McMurray University.

VALUE The property is priced at $138 per square foot of rentable building area with

potential upside in rent growth and full-occupancy. HIGHWAY FRONTAGE Turner Plaza fronts Winters Freeway, the major ring road encircling Abilene

and is situated adjacent to the Mall of Abilene. STABLE TENANT MIX Anchored by AT&T Wireless since 1990, Smile Brands since 1998, and

Fuzzy’s Tacos since 2013, Turner Plaza Shopping Center has a strong blend of national and local credit tenants that fit well with the surrounding community. Moreover, Fuzzy’s at Turner Plaza is one of the highest grossing sales locations in the West Texas franchisee’s market.


PROPERTY DETAILS

LOCATION 3329-3351 Turner Drive, Abilene, TX 79606 MUNICIPAL ADDRESS 3351 Turner Drive (Taylor County), Abilene, TX 79606 Taylor County Tax ID: 37931, Geo ID: 24125004200 LEGAL ADDRESS Curry Park Addn, Block C, Lot 105 LAND AREA 2.2971 Acres RENTABLE AREA 29,283 square feet BAY DEPTHS 65 feet YEAR BUILT 1983 BUILDING CONSTRUCTION The shopping center is constructed of dryvit exterior over a steel frame,

concrete slab-on-grade foundation, and bronzed anodized aluminum and glass storefronts.

ROOF Three ply built-up roof with gravel surface (replaced in 2011) PARKING 106 spaces on asphalt surface (2016 asphalt overlay) ZONING “GC” General Commercial TRAFFIC COUNT 19,150 vehicles per day on the southbound frontage road

Count Date: TxDOT 2010 Saturation Counts


SELECT TENANT OVERVIEWS

AT&T WIRELESS

AT&T Wireless’s corporate-owned store at Turner Plaza has been a tenant at Turner Plaza since 1990 and during that time, AT&T has expanded their square footage twice. This unique ATT location houses a typical ATT store retail format coupled with a versatile corporate training center.

SMILE BRANDS GROUP Smile Brands Group, and its predecessor Monarch Dental, have been a tenant at Turner Plaza since 1998. Smile Brands is the largest provider of support services to general and multi-specialty dental groups in the United States based on the number of dental offices. The Turner Plaza location employs dentists, specialists, and hygienists to provide a full range of dental services.

FUZZY’S TACO SHOP Fuzzy’s Taco Shop has leased the north end-cap at Turner Plaza since 2013. Fuzzy’s is a baja style taco franchise that began in Forth Worth, TX in 2003. Clardy Ventures, the Fuzzy’s franchisee in West Texas, owns numerous franchise locations in Lubbock, Abilene, and Amarillo.


AREA MAP

Turner Plaza fronts Winters Freeway, the major ring road encircling Abilene and is situated adjacent to the Mall of Abilene. Trade area anchors include Target and Lowe’s Home Improvement along-side numerous fast food and fast-casual retailers.


SITE MAP

Tenant Stacking Plan (North to South)

Suite 100N Fuzzy’s Taco 4,034 SF Suite 101N Mad Vapes 1,378 SF Suite 103N Vacant 2,051 SF Suite 105N David Avery Salon 2,175 SF Suite 107N Edward E. Jones 1,275 SF Suite 108N Any Lab Test Now 900 SF Suite 109N Kelly Nails 875 SF Suite 110N Big Johnson Liquor 2,052 SF Suite 100S Livingston Hearing Aid 2,288 SF Suite 108S AT&T Wireless 8,149 SF Suite 110S Smile Brands Dental 4,106 SF


PROPERTY PICTURES

BANDY INVESTMENTS TURNER PLAZARENT ROLL As of: 4/1/2017

ANNUAL GROSSTENANT UNIT SQ. FT % FROM TO SQ FT/YR PER MO INCR (DATE)INCR (AMT) MONTH SQ FT/YR MONTH SQ FT/YR MONTH SQ FT/YR RENT SQ FT/YR RENT

(1) FUZZY'S TACO SHOP TUR-100N 4,034 13.8% 08/01/13 07/31/18 $10.00 $3,361.66 08/01/13 $3,361.66 $1,109.35 $3.30 $447.10 $1.33 $178.17 $0.53 $5,096.28 $15.16 $61,155.36

(2) MAD VAPES TUR-101N 1,378 4.7% 03/11/15 04/30/18 $10.30 $1,182.78 05/01/16 $1,182.78 $378.95 $3.30 $152.73 $1.33 $60.86 $0.53 $2,047.32 $17.83 $24,567.84$10.61 05/01/17 $1,218.38

(3) VACANT TUR-103N 2,051 7.0% 01/00/00 01/00/00 $0.00 $0.00 01/00/00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

(4) DAVID AVERY SALON TUR-105N 2,175 7.4% 04/01/07 04/30/19 $10.00 $1,812.50 05/01/16 $1,812.50 $598.13 $3.30 $241.06 $1.33 $96.06 $0.53 $2,747.75 $15.16 $32,973.00$10.50 05/01/17 $1,903.12

(5) EDWARD JONES TUR-107N 1,275 4.4% 08/13/04 09/30/19 $9.00 $956.25 09/01/16 $956.25 $350.63 $3.30 $141.31 $1.33 $56.31 $0.53 $1,504.50 $14.16 $18,054.00$9.50 09/01/17 $1,009.38

(6) ANY LAB TEST NOW TUR-108N 900 3.1% 04/25/09 08/31/19 $9.18 $688.48 09/01/14 $688.48 $247.50 $3.30 $99.75 $1.33 $39.75 $0.53 $1,075.48 $14.34 $12,905.76

(7) KELLY NAILS TUR-109N 875 3.0% 04/07/09 08/31/20 $12.00 $875.00 06/01/16 $875.00 $240.63 $3.30 $96.98 $1.33 $38.65 $0.53 $1,251.25 $17.16 $15,015.00$12.50 06/01/17 $911.46$13.00 06/01/18 $947.92$13.50 06/01/19 $984.38

(8) BIG JOHNSON LIQUOR TUR-110N 2,052 7.0% 06/13/11 06/30/21 $10.75 $1,838.25 07/01/16 $1,838.25 $564.30 $3.30 $227.43 $1.33 $90.63 $0.53 $2,720.61 $15.91 $32,647.32$11.25 07/01/18 $1,923.75$11.75 07/01/21 $2,009.25

(9) LIVINGSTON HEARING AID TUR-100S 2,288 7.8% 06/19/08 12/31/17 $11.00 $2,097.33 01/01/16 $2,097.33 $629.20 $3.30 $253.59 $1.33 $101.05 $0.53 $3,081.17 $16.16 $36,974.04

(10) AT&T WIRELESS TUR-108S 8,149 27.8% 10/08/90 01/31/19 $11.75 $7,979.23 01/01/17 $7,979.23 $2,240.98 $3.30 $903.18 $1.33 $359.91 $0.53 $11,483.30 $16.91 $137,799.60

(11) SMILE BRANDS TUR-110S 4,106 14.0% 12/01/98 11/30/18 $10.25 $3,507.21 12/01/16 $3,507.21 $1,129.15 $3.30 $455.08 $1.33 $181.35 $0.53 $5,272.79 $15.41 $63,273.48

T O T A L S : 29,283 100% $24,298.69 $7,488.80 $3,018.21 $1,202.75 $36,280.45 $435,365.40

Total Occupied 93% 27,232 Total Vacant Sq 7% 2,051

MONTHLY GROSSTENANT ROSTER LEASE TERM BASE RENT CAM TAX INS


NOTES TO RENT ROLL

(1) Fuzzy’s Taco Shop – Tenant since 2013. Fuzzy’s Taco has (1) 5-Year renewal option set at $11.00 psf NNN for renewal year 1, $11.22 psf NNN for renewal year 2, $11.44 psf NNN for renewal year 3, $11.67 psf NNN for renewal year 4, and $11.91 psf NNN for renewal year 5. This tenant does not have any lease exclusives and the lease guarantor is Clardy Venture III, LLC.

(2) Mad Vapes – Tenant since 2015. Mad Vapes pays an additional $222/month for shared space electric service. Mad Vapes does not have renewal options or exclusives. Lease guarantor is Mark Hoogendoorn personally.

(3) Vacant space currently being marketed for lease.

(4) David Avery Salon - Tenant since 2007. David Avery Salon does not have renewal options or

exclusives. Lease guarantor is Nicole Wimberly personally.

(5) Edward Jones - Tenant since 2004. Edward Jones has one (1) five (5) year renewal option at market. Tenant does not have any exclusives.

(6) Any Lab Test Now - Tenant since 2009. Any Lab Test Now has one (1) five (5) year renewal option at market. Tenant has an exclusive towards “similar” businesses. Lease guarantor is Linda Roark personally. Tenant pays annual base rent one year in advance.

(7) Kelly Nails - Tenant since 2009. Kelly Nails does not have renewal options or exclusives. Lease

guarantor is Mai Ung Chenh personally.

(8) Big Johnson Liquor - Tenant since 2011. Big Johnson Liquor does not have renewal options or exclusives. Lease guarantors are John and Rhonda Johnson personally.

(9) Livingston Hearing Aid - Tenant since 2008. Livingston Hearing Aid does not have renewal options

or exclusives.

(10) ATT Wireless – Tenant’s since 1990. Tenant has one (1) five (5) year renewal option at $13.23 NNN per square foot and has an exclusive for cellular telephone businesses. Lease is a corporate lease.

(11) Smile Brands - Tenant since 1998. Smile Brands has two (2) five (5) year renewal option at market.

Tenant has an exclusive towards dental businesses. Lease is a corporate lease.

GROSSANNUALINCOME $S $S/SF

1 BASEANNUALRENT 293,660 10.03

2 TENANTREIMBURSEMENTSREALESTATETAXES 36,219 1.24INSURANCE 14,433 0.49COMMONAREAMAINTENANCE 89,866 3.07

TOTALGROSSANNUALINCOME 434,178 14.83

ANNUALOPERATINGEXPENSES

3 REALESTATETAXES 37,193 1.27

4 INSURANCE 15,464 0.53

5 COMMONAREAMAINTENANCEUTILITIES 34,792 1.19TRASHREMOVAL - -LANDSCAPING&GROUNDS 5,204 0.18REPAIRS&MAINTENANCE 28,345 0.97GENERAL&ADMINISTRATIVE 142 0.00LEGAL&PROFESSIONAL 1,945 0.07

6 MANAGEMENTFEE 18,600 0.64

TOTALANNUALOPERATINGEXPENSES 141,686 4.84

NETOPERATINGINCOME 292,491 9.99

2017OPERATINGSTATEMENT(93%OCCUPANCY)

TURNERPLAZASHOPPINGCENTER


NOTES TO OPERATING STATEMENT

(1) Base Annual Rent is the monthly rent budgeted for collection from tenants during 2017. (2) Tenant’s Tax, Insurance, and Common Area Maintenance Reimbursements are the reimbursements

that are collected from tenants for their pro rata share of these items on the property, including some management and administrative pass-throughs.

(3) Expenses shown for Real Estate Taxes are the estimated taxes to be incurred in 2017. (4) Insurance shown is the actual amount paid for insurance in 2017 and the figure includes fire &

casualty, general liability, and umbrella coverage. (5) Common Area Maintenance (CAM) expenses include common area electricity, water, sewer,

cleaning, trash removal, repairs, maintenance, landscaping, and parking lot repairs. The CAM expenses shown reflect the expected 2017 CAM expenses. Trash removal is included in the utilities expense.

(6) Management fee reflects the estimated management fee taken by the owner during 2017.


BANDY INVESTMENTS DISCLAIMER Bandy Investments and/or Seller make no representations or warranties as to the truth, accuracy or completeness of this presentation package and any other materials, data or other information supplied in connection with the property, including, without limitation, the summaries of various legal documents relevant to this property. It is the parties’ express understanding and agreement that such materials are provided only for the parties’ convenience. In making their own examination and determination as to whether they wish to purchase the property, the parties shall rely exclusively on their own independent investigation and evaluation of every aspect of the property and their own analysis of all legal documentation relevant to the property and not on any materials supplied by Bandy Investments and/or Seller. The parties expressly disclaim any reliance on any such materials provided to it by Bandy Investments and/or Seller in connection with their inspection and agree that they shall rely solely on their own independently developed or verified information, investigation or analysis. Bandy Investments and/or Seller reserve the right at any time to alter, amend or modify the information contained in such materials or to remove the property from the marketplace without notice. No copies of this presentation may be made in whole or part without the prior written consent of Bandy Investments. Information disclosed in this presentation package shall be held in “strict confidence”. The person executing this Disclaimer has full authority to do so and to bind the party they represent to the agreements contained herein.

Agreed and Accepted:

Name: ___________________________

By: ___________________________

Printed Name: ___________________________

Its: ___________________________

And Authorized Agent

11-2-2015

TYPES OF REAL ESTATE LICENSE HOLDERS: x A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker.x 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): x Put the interests of the client above all others, including the broker’s own interests; x Inform the client of any material information about the property or transaction received by the broker;x Answer the client’s questions and present any offer to or counter-offer from the client; andx 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: x Must treat all parties to the transaction impartially and fairly;x 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. x Must not, unless specifically authorized in writing to do so by the party, disclose:

ᴑ that the owner will accept a price less than the written asking price;ᴑ that the buyer/tenant will pay a price greater than the price submitted in a written offer; andᴑ 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: x The broker’s duties and responsibilities to you, and your obligations under the representation agreement. x 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 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.

.

Designated Broker of Firm License No. Email Phone

Licensed Supervisor of Sales Agent/Associate

License No. Email Phone

Licensed Broker /Broker Firm Name or Primary Assumed Business Name

License No. Email Phone

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

Date Buyer/Tenant/Seller/Landlord Initials

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

Roland Thomas Bandy, Jr.

133374

[email protected]

214-522-2102

Thomas Matthew Bandy

462382

[email protected]

214-522-2102

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