bruton terrace shopping center...term and long-term through repositioning, lease-up and raising...

OFFERING MEMORANDUM

2233 N. PRAIRIE CREEK ROADDALLAS, TEXAS 75227

BRUTON TERRACE SHOPPING CENTER

BRUTON TERRACE SHOPPING CENTEROFFERING MEMORANDUM

CAMERON DEPTULA

DB2RE INVESTMENT SALES

c: 214.497.0276

o: 214.526.3626 x116

e: [email protected]

www.DB2RE.com

EXCLUSIVE LISTING TEAM

2929 Carlisle Street, Suite 250

Dallas, TX 75204

TABLE OF CONTENTS

SECTION 1 | EXECUTIVE SUMMARY 04

SECTION 2 | PROPERTY INFORMATION 06

SECTION 3 | LOCATION OVERVIEW 09

SECTION 4 | MARKET OVERVIEW 15

SECTION 5 | FINANCIAL ANALYSIS 17

SECTION 6 | DISCLAIMER 22

DB2RE INVESTMENT SALES is pleased to present Bruton Terrace Shopping Center a 89,715 square foot Hispanic inspired shopping center located at the NWC of Bruton Road and N. Prairie Creek Road in Dallas, Texas. The property consists of two (2) buildings, Building 1: 81,545 SF & Building 2: 8,170 SF, currently 56.17% leased by long-serving tenants such as Big Ben Unisex Salon, Bruton Wash & Dry, La Quebradita Salon and Bruton Bazaar. Bruton Bazaar boast approximately 43 vendors, selling an assortment of wares and goods.

Adjacent to Bruton Terrace is 99 Cents Only, one of the largest traffic generators in the market. The property’s strategic positioning also provides access to over 130K and 290K residents within a 3 and 5 mile radius, of which, 62.30% and 52.60% of the population base are of Hispanic origin. Updated in 2014, the property provides new ownership with quality TPO roofs on both properties, updated facades, LED lighting and a new 24/7 security system. Overall, the offering provides investors with a consistent revenue stream of approximately $231,748 annually (8.91% return), as well as, significant upside potential in both the short-term and long-term through repositioning, lease-up and raising below market rates. With over 6.96 AC of infill land, Bruton Terrace Shopping Center provides investors with a rare opportunity to enter the dense SE Dallas market well below replacement cost / $8.57 PSF to the dirt.

the offering

executive summary DB2RE | 4

LOCATION:2233 N. Prairie Creek RoadDallas, Texas 75227

SALE PRICE: $2,600,000

NOI: $231,748

CAP RATE: 8.91%

PRICE PSF: $28.98 (SF) / $8.57 (Land)

GLA:: 89,715 SF

OCCUPANCY:Retail - 78.95%Bazaar - 53.89%

YEAR BUILT: 1966 / 2014

LOT SIZE: 6.96 AC / 303,265 SF

ZONING: CR

DEBT: Free & Clear

• Offered at $2,600,000, the investment is below replacement value, equating to $28.98 PSF to the buildings and $8.57 PSF to the land.

• Excellent dense / infill location located in the heart of SE Dallas. Premises is 89,715 SF and is strategically positioned on 6.96 AC or 303,265 SF of land.

• The offering provides investors with a stabilized revenue stream ($231,748 annually) as well as an array of value-add opportunities which include: below market rents, lease-up potential, redevelopment opportunities as well as the ability to construct a pad site along N. Prairie Creek Road on part of the parking lot.

• Surrounding area boast terrific demographics with 20,731, 130,705 and 293,993 residents within a 1, 3 and 5 mile radius. The main ethnic group for the respective radii is predominately Hispanic with 60.80%, 62.30% and 52.60% of the population base of Hispanic origin. Such demographics make Bruton Terrace Shopping Center well positioned for long-term success.

• Neighboring communities boast 5,858, 36,343 and 90,862 households within the property’s respective 1, 3 and 5 mile radius.

• The center is conveniently located, surrounded by various major thoroughfares that include: Highway 87 to the north, Interstate 635 to the east, Highway 175 to the south and the Downtown Dallas exchange to the west (the convergence of Highway 75, Interstate 45, Interstate 30, Interstate 35 and Highway 67).

• The property benefits from a new roof and an updated facade, both completed in 2014. The capital intensive updates limit expenditures for new ownership.

• New security system and LED lighting were also added in 2014, providing a safe and well lit property throughout the day and a reduced cost.

• The property benefits from long-serving tenants which have been at the premises for over 10-years. The established businesses solidify new ownership’s revenue stream while repositioning efforts take place.

• 81.55% of the shopping center or 73,170 SF are on MTM leases, including vendors in the Bruton Bazaar. The MTM lease term provides increased flexibility to reposition asset as well as achieve new leases at market terms and rates.

investment highlights

executive summary DB2RE | 5

PROPERTY DETAILS

PROPERTY INFORMATION DB2RE | 6

ADDRESS:2233 N. Prairie Creek

9009 Road Bruton RoadDallas, TX 75227

HVAC:Roof mounted HVAC units

TRAFFIC COUNTS:Bruton Road - 35,029 vpd

N. Prairie Creek Road - 22,403 vpd

ROOF:2014

YEAR BUILT:1966 / 2014

PARKING:Approximately 375 surface

spaces / 3.92 per 1,000

SIGNAGE:Tenant signage on every

tenant’s facade

INGRESS/EGRESS:Four (4) points of entry

and exit along N. Prairie Creek Road, Bruton Road

& Riverway Drive

ZONING:CR

APN:00-00053-356-300-01-0000-00053-355-450-00-00

BUILDING SIZE:89,715 SF

BLDG 1: 81,545 SFBLDG 2: 8,170 SF

LOT SIZE:6.96 AC

OCCUPANCY:56.17%

SITE PLAN


1 - 200

2 - 2002 - 100

1 - 100

2 - 4002 - 300

TENANT SUITE GLA

Bruton Bazaar 1 - 100 65,000 SF

LA Classe Entertainment 1 - 200 16,545 SF

Bruton Wash & Dry 2 - 100 3,870 SF

Big Ben Unisex Salon 2 - 200 860 SF

LaQuebradita Salon 2 - 300 1,720 SF

Available 2 - 400 1,720 SF

SURVEY


LOCAL MAP

REGIONAL MAP

BRUTON ROAD

TRINITY FOREST GOLF CLUB

N. PRAIRIE CREEK ROAD

HIGHWAY 352

S. BUCKNER BOULEVARD / HIGHWAY 12

S. HASKELL AVENUE / MILITARY PARKWAY

HIGHWAY 75

WW SAMUELL HIGH SCHOOL

ANNIE WEBB BLANTON ELEMENTARY SCHOOL

N. JIM MILLER ROAD

BRUTON ROAD

DOWNTOWN DALLAS


S. BUCKNER BOULEVARD / HIGHWAY 12

WW SAMUELL HIGH SCHOOL

ANNIE WEBB BLANTON ELEMENTARY SCHOOL

EXXON MOBILE

DOMINO’S

99 CENTS ONLY

METRO PCS

TEXAS STAR DENTAL

JACKSON HEWITT

DALLAS CAR

CHURCH’S CHICKEN

COMPLETE AUTO

PHILLIPS 66

LA SABROCITA

BRUTON ROAD


PROPERTY INFORMATIONDEMOGRAPHICS

1 MILE 3 MILE 5 MILE

TOTAL POPULATION: 20,731 130,705 293,993

POPULATION GROWTH RATE: 1.24% 1.15% 1.19%

TOTAL HOUSEHOLDS: 5,858 36,343 90,862

HOUSEHOLD GROWTH RATE: 1.11% 1.02% 1.06%

AVERAGE HOUSEHOLD INCOME: $46,319 $48,014 $51,705

MEDIAN AGE: 29.8 28.6 30.0

BUSINESSES: 189 1,911 5,720

EMPLOYEES: 1,538 30,136 73,318

% HISPANIC: 60.80% 62.30% 52.60%

% WHITE: 37.70% 40.40% 42.80%

DB2RE | 14

#1 - Top Metro For Talent Attraction, EMSI - 2017#1 - Best Cities for Jobs 2017, Forbes - 2017#1 - Best Places To Live (Top 20), U.S. News & World Report - 2017#1 - Percent Job Growth, 2016#1 - Real Estate Market For 2016, Urban Land Institute – 2016#1 - CEO’s Name Texas Best State For Business, CEO Magazine - 2016#1 - Top Emerging Real Estate Market In 2016, PWC / ULI - 2015#1 - America’s #1 Most Business Friendly City, MarketWatch - 2015#1 - Most Efficient Metro Region, The U.S. COCF - 2015#1 - Best City for Jobs This Fall (Dallas), Forbes - 2014#1 - Texas has the Best Business Climate, DCI - 2014#1 - Downtown Fort Worth is No. 1, Livability.com - 2014#1 - Top city in the country to find tech professionals (Dallas), Kforce - 2013#1 - Most affordable Major Metropolitan Area in the U.S., ZipRealty – 2013#2 - Country’s Healthiest Housing Markets, CNBC - 2017#2 - Top Metros of 2016, Site Selection - 2017#2 - Absolute Job Growth, 2016#2 - Best City for Job Seekers in 2015 (Fort Worth), NerdWallet – 2015#3 - Best Sports Cities In The United States, Sports Illustrated - 2017#3 - Hottest Housing Market, Zillow – 2016#3 - Corporate Expansions, 2016

dfw national recognition

market overview

The Dallas/Fort Worth Metroplex (DFW) is a dynamic 12-county region made up of Dallas, Fort Worth, and another 150 municipalities. The DFW Metroplex is the largest urban agglomeration in Texas and the fourth largest in the United States spanning an area of 9,286 square miles with a population of approximately 7.1 million people. As the fourth fastest growing region in the United Sates, the DFW population in 2016 was 33.6% higher than in 2000 according to data from Neilson Claritas; by the year 2030, it is projected that over 10.5 million people will be living in the Metroplex according to the Dallas Regional Chamber.

The DFW region is the most economically diverse region in the state of Texas. The GDP of North Texas is estimated to be $486 Billion, and if DFW were its own state it would be the 9th largest in the Nation and 23rd largest country in the World, behind Taiwan. Twenty Fortune 500 companies have their headquarters in DFW. DFW is connected to the world by the nation’s fourth busiest airport and is served by 55 international flights. DFW has the largest workforce in the state of Texas totaling over 3.51 million people, and 34.20% of the population 25 and older have a bachelor’s degree or higher. In DFW, there are 33 colleges and universities, 157 public school districts and 96 public charter schools, according to the North Texas Commission.

Dallas/Fort Worth consistently ranks as a top market for job growth over the short and long term due to its central location, pro-business environment and strong economy. Historically a leader with respect to job growth, DFW added 717,000 jobs since 2010 and 120,500 jobs in 2016 alone, equating to a 3.50% increase to the employment base. Dallas/Fort Worth as well as Texas, continuously boast an unemployment rate lower than the National Average (4.30%). As of Today, DFW enjoys an average unemployment rate of 3.80%.

dfw market overview

market overview

FINANCIAL ANALYSISRENT ROLL

DB2RE | 17

TOTALS

TENANT SUITE GLA % Of GLA LEASE TYPE START END MONTHLY ANNUAL PSF % OF REV MONTHLY ANNUAL PSF % OF REV TOTAL % REV

Bruton Wash & Dry Lavanderia 2 - 100 3,870 4.31% Gross - MTM $4,000 $48,000 $12.40 9.88% $0 $0 $0.00 0.00% 9.88%

Big Ben Unisex Salon 2 - 200 860 0.96% Gross - MTM $1,300 $15,600 $18.14 3.21% $0 $0 $0.00 0.00% 3.21%

La Quebradita Salon 2 - 300 1,720 1.92% Gross - MTM $1,675 $20,100 $11.69 4.14% $0 $0 $0.00 0.00% 4.14%

Available 2 - 400 1,720 1.92% - - - $0 $0 $0.00 0.00% $0 $0 $0.00 0.00% 0.00%

La Classe Entertainment 1 - 100 16,545 18.44% NNN 04/19 03/26 $4,784 $57,405 $3.47 11.81% $3,724 $44,688 $2.70 9.20% 21.01%

Bruton Bazzar 1 - 200 65,000 72.45% Gross - MTM $25,015 $300,180 $4.62 61.77% $0 $0 $0.00 0.00% 61.77%

TOTALS: 89,715 100% $36,774 $441,285 151% $3,724 $44,688 18% 100%

NUMBER OF TENANTS / GLA - STRIP 4 8,170 9.11%

NUMBER OF TENANTS / GLA - BAZAAR BOX 103 8,170 90.89%

TOTAL 107 8,170 100.00%

OCCUPIED - STRIP 3 8,170 78.95%

OCCUPIED - BAZAAR BOX 43 8,170 48.99%

TOTAL 46 8,170 56.17%

AVAILABLE - SC 1 8,170 21.05%

AVAILABLE - BAZAAR 54 8,170 41.91%

TOTAL 55 8,170 43.83%

LEASE TERM BASE RENTAL TERMS RECOVERIES

FINANCIAL ANALYSISEXPENSE REIMBURSEMENTS

DB2RE | 18

TENANT SUITE GLA % MONTHLY ANNUAL PSF MONTHLY ANNUAL PSF MONTHLY ANNUAL PSF MONTHLY ANNUAL PSF MONTHLY ANNUAL PSF

Bruton Wash & Dry Lavanderia 2 - 100 3,870 4.31% $0 $0 $0.00 $0 $0 $0.00 $0 $0 $0.00 $0 $0 $0.00 $0 $0 $0.00

Big Ben Unisex Salon 2 - 200 860 0.96% $0 $0 $0.00 $0 $0 $0.00 $0 $0 $0.00 $0 $0 $0.00 $0 $0 $0.00

La Quebradita Salon 2 - 300 1,720 1.92% $0 $0 $0.00 $0 $0 $0.00 $0 $0 $0.00 $0 $0 $0.00 $0 $0 $0.00

Available 2 - 400 1,720 1.92% $0 $0 $0.00 $0 $0 $0.00 $0 $0 $0.00 $0 $0 $0.00 $0 $0 $0.00

La Classe Entertainment 1 - 100 16,545 18.44% $2,042 $24,505 $1.48 $273 $3,280 $0.20 $627 $7,523 $0.45 $782 $9,379 $0.57 $3,724 $44,688 $2.70

Bruton Bazzar 1 - 200 65,000 72.45% $0 $0 $0.00 $0 $0 $0.00 $0 $0 $0.00 $0 $0 $0.00 $0 $0 $0.00

TOTALS: 89,715 100% $2,042 $24,505 $273 $3,280 $627 $7,523 $782 $9,379 $3,724 $44,688

TOTAL RECOVERYCAM MANAGEMENT FEE INSURANCE TAXES

FINANCIAL ANALYSIStenant notes

DB2RE | 19

TENANT SUITE GLA RENTAL INCREASE(S) DATE MONTHLY ANNUAL PSF RENEWAL % RENT NOTES

Bruton Wash & Dry Lavanderia 2 - 100 3,870 - - - - - - $0 -

Big Ben Unisex Salon 2 - 200 860 - - - - - - $0 -

La Quebradita Salon 2 - 300 1,720 - - - - - - $0 -

Available 2 - 400 1,720 - - - - - - $0 -

La Classe Entertainment 1 - 100 16,545 Six (6)

04/2004/2104/2204/2304/2404/25

$5,033.76$5,283.76$5,533.76$5,783.76$6,033.76$6,283.76

$60,405.12$63,405.12$66,405.12$69,405.12$72,405.12$75,405.12

$3.65$3.83$4.01$4.19$4.38$4.56

Two (2) five-year options at FMV $0

Guarantors:Christian Asong Atem

Divine Nkache NyiawungMichael Enoh

Bruton Bazzar 1 - 200 65,000 - - - - - - $0 -

TOTALS: 89,715 $0

OPTION NOTES SALESBASE RENTAL INCREASE

FINANCIAL ANALYSISincome & expense

DB2RE | 20

CURRENT PSF % Of EGR

REVENUE:

Rental Revenue $441,285 $5.40 90.80%

CAM Recovery $24,505 $0.30 5.04%

Management Recovery $3,280 $0.04 0.68%

Insurance Recovery $7,523 $0.09 1.55%

Real Estate Tax Recovery $9,379 $0.11 1.93%

TOTAL REVENUE $485,973 $5.94 100.00%

OPERATING EXPENSES:

CAM Expenses ($132,876) ($1.62) -27.34%

Management Fee Expenses ($19,442) ($0.24) -4.00%

Insurance Expenses ($40,795) ($0.50) -8.39%

Real Estate Taxes ($61,112) ($0.75) -12.58%

TOTAL EXPENSES ($254,225) ($3.11) -52.31%

NOI: $231,748 $2.83 47.69%

Jan-19

FINANCIAL ANALYSISexpiration schedule

DB2RE | 21

TENANT SUITE END AVAILABLE MTM 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

Available 2 - 400 - 1,720

Bruton Wash & Dry Lavanderia 2 - 100 MTM 3,870

Big Ben Unisex Salon 2 - 200 MTM 860

La Quebradita Salon 2 - 300 MTM 1,720

Bruton Bazzar 1 - 200 MTM 65,000

La Classe Entertainment 1 - 100 03/26 16,545

TOTAL EXPIRATION AREA 1,720 71,450 0 0 0 0 0 0 0 16,545 0 0 0 0 0 0 0

PERCENT OF TOTAL CENTER 1.92% 79.64% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 18.44% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Davidson & Bogel Real Estate, LLC and DB2RE Investment Sales (DB2RE): The information contained in this doc-

ument pertaining to Bruton Terrace Shopping Center “Property” has been obtained from sources believed reliable.

While DB2RE does not doubt its accuracy, DB2RE has not verified the information and makes no guarantee, warranty

or representation about the information contained in this package. It is your (Purchaser) responsibility to independent-

ly confirm the accuracy and completeness of the information. Any projections, opinions, assumptions or estimates

used herein are for example only and does not represent the current or future performance of the property. The value

of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal

advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to

your satisfaction the suitability of the property for your needs. Photos herein are the property of their respective own-

ers and use of these images without the express written consent of the owner is prohibited. DB2RE and the DB2RE

logo are service marks of Davidson & Bogel Real Estate, LLC and/or its affiliated or related companies in the United

States and other countries. All other marks displayed as well as any elements of this document are the property of

their respective owners and DB2RE. No transmission of this document is permitted without written consent from

DB2RE. As a condition of DB2RE’s consent to communicate the information contained herein–as well as any infor-

mation that may be communicated to you subsequently either verbally or in writing by DB2RE, owner or agents of

either of these parties regarding the Property – it is required that you agree to treat all such information confidentially.

DISCLAIMERDISCLOSURE

DB2RE | 22

Approved by the Texas Real Estate Commission for Voluntary Use. Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

INFORMATION ABOUT BROKERAGE SERVICES: Before working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner’s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer’s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A bro-ker is obligated by law to treat you honestly.

Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records.

Buyer, Seller, Landlord or Tenant

01A TREC No. OP-K

Texas Real Estate Brokers and Salespersons are licensed and regulated by the Texas Real Estate Commission (TREC). If you have a question or complaint regarding a real estate licensee, you should contact TREC at P.O. Box 12188, Austin, Texas 78711-2188 or 512-465-3960.

IF THE BROKER REPRESENTS THE BUYER: The broker becomes the buyer’s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer’s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer’s agent anything the owner would not want the buyer to know because a buyer’s agent must disclose to the buyer any material information known to the agent.

(4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property. With the parties’ consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to commu-nicate with and carry out instructions of one party and another person who is licensed under that Act and as-sociated with the broker to communicate with and car-ry out instructions of the other party.

IF THE BROKER REPRESENTS THE OWNER: The broker becomes the owner’s agent by entering into an agreement with the owner, usually through a written - listing agreement, or by agreeing to act as a subagent by accepting an offer of subagency from the listing broker. A subagent may work in a differ-ent real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner’s agent anything the buyer would not want the owner to know because an own-er’s agent must disclose to the owner any material in-formation known to the agent.

IF THE BROKER ACTS AS AN INTERMEDIARY: A broker may act as an intermediary between the parties if the broker complies with The Texas Real Es-tate License Act. The broker must obtain the written consent of each party to the transaction to act as an intermediary. The written consent must state who will pay the broker and, in conspicuous bold or under-lined print, set forth the broker’s obligations as an in-termediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermedi-ary in a transaction:(1)shall treat all parties honestly;(2) may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner; buyer: and(3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer un-less authorized in writing to do so by the buyer; and

IF YOU CHOOSE TO HAVE A BROKER REPRESENT YOU:You should enter into a written agreement with the bro-ker that clearly establishes the broker’s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and re-sponsibilities of the broker, you should resolve those questions before proceeding.

Date

DISCLAIMERBROKERAGE SERVICES

DB2RE | 23

CAMERON DEPTULA

2929 Carlilse Street, Suite 250

Dallas, TX 75204

(214) 497 - 0276

[email protected]

WWW.DB2RE.COM

bruton terrace shopping center2233 N. Prairie Creek Road

Dallas, Texas 75227

bruton terrace shopping center...term and long-term through repositioning, lease-up and raising...

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