fairfield crossing - 406 e commerce st, fairfield, tx 75840...foods, from health and beauty aids to...

F A I R F I E L D , T X

FAIRFIELDCROSSING

EXCLUSIVELY LISTED BY

JOSH BISHOPVP & Director

D: +1 (214) 692-2289M: +1 (315) [email protected] No. 688810 (TX)

CHAD KURZEVP & Managing Director

D: +1 (214) 692-2927M: +1 (562) [email protected] No. 01911198 (CA)

BROKER OF RECORDKyle MatthewsLicense No. 9005919 (TX)

PETER SMELKOAssociate

D: +1 (214) 692-2186M: +1 (972) [email protected] No. 700049 (TX)

2O f f e r i n g M e m o ra n d u m

TABLE OF CONTENTS

04OFFERING SUMMARY

05 06 1610EXECUTIVEOVERVIEW

VALUATION &ASSUMPTIONS

ASSETANALYSIS

AREAOVERVIEW

20TENANT

OVERVIEWS

FAIRFIELDCROSSING

3Fa i r f i e l d C ro s s i n g

THE OFFERING

Matthews Real Estate Investment Services™ is proud to offer Fairf ield Crossing in Fairf ield, TX. Fairf ield Crossing is a 25,000 square foot center that is currently 80% occupied and anchored by Dollar Tree and Family Dollar. This offering presents the opportunity to acquire a low maintenance strip that is anchored by investment grade tenants and provides signif icant upside through lease up of the one vacancy. There is over a 300bps increase in caprate once the remaining vacant unit is leased, creating a signif icant increase in cash flow and cash on cash returns.

The roof was recently replaced in 2018 and currently has over 10 years remaining on the warranty. Dollar Tree just signed a new lease in 2018, which created additional stability and surety of cash flow as Dollar Tree and Family Dollar are both BBB- Investment Grade credit. The center is strategically located in Fairf ield, TX which is centrally located between Dallas and Houston along Interstate 45.

$1,970,000PRICE

$79PRICE PSF

$158,925NOI

8.1%CAP RATE


INVESTMENT HIGHLIGHTS

» Investment Grade/Recession Proof Tenants

Dollar Tree and Family Dollar are both corporately guaranteed BBB- Investment Grade Credit, providing an investor safety and surety of cash flow. Both tenants have remained open for the entirety of 2020 and have performed well above average compared to other retailers.

» Achievable Value-Add Upside

There is currently one vacant space between Dollar Tree and Family Dollar that represents 20% of the GLA allowing an investor the opportunity to signif icantly increase cash flow and cash on cash returns. There is a pending dentist group that the seller is negotiating with for the vacant space which could provide the opportunity for an investor to capitalize on the upside day 1.

» Recent Cap Ex Improvements

The roof was fully replaced in 2018 and is under warranty though 2030

» Attractive PSF

The asking price represents a price per square foot of $78 and is offered well below the cost of replacement


VALUATION & ASSUMPTIONS02FAIRFIELDCROSSING


VALUATION SUMMARY

List PricePricing Summary:

Price $1,970,000 Price PSF ($) $79

Returns Summary:In Place Cap Rate 8.1%Cash-on-Cash Yr. 1 12.70%Pro-Forma Cap Rate 11.03%Cash-on-Cash Pro-Forma 22.58%

Capital Summary:Equity (required) $591,000 Debt $1,379,000

Debt Summary (Proposed):LTV 70%Loan Amount $1,379,000 Interest Rate 4.50%Amortization 30 YearsTerm 10 YearsMonthly Debt Service $6,987 Annual Debt Service $83,846 Net Cash Flow - Year 1 $75,078 Net Cash Flow - Pro-Forma $133,423

Financial:Year 1 NOI $158,925 Pro-Forma NOI $217,269 Gross Leasable Area +/-25,000In Place Occupancy 79.9%


Year 1 StabilizedTotal $ PSF Total $ PSF

Income

Rental Income $175,670 $7.03 $225,670 $9.03

Reimbursement Revenue $24,810 $0.99 $33,154 $1.33

Effective Gross Revenue $200,480 $8.02 $258,824 $10.35

Expenses

Real Estate Taxes $27,895 $1.12 $27,895 $1.12

Insurance - Casualty $6,860 $0.27 $6,860 $0.27

Insurance - Liability $550 $0.02 $550 $0.02

CAM $6,250 $0.25 $6,250 $0.25

Total Operating Expenses $41,555 $1.66 $41,555 $1.66

Net Operating Income $158,925 $6.36 $217,269 $8.69

FINANCIAL OVERVIEW


ASSE TANALYSIS03FAIRFIELDCROSSING


ADDRESS406 E Commerce StFairfield, TX 75840

GROSS LEASABLE AREA± 25,000 SF

LAND AREA ± 1.6 AC

CURRENT OCCUPANCY79.9%

FAIRFIELDCROSSING


U S H W Y 8 4 W

H W Y 4 8 8

M A I N S T

CO

TT

ON

ST

V A C A N T

Suite Tenant Square Feet1 Dollar Tree 9,020

2 Family Dollar 10,960

3 Vacant 5,020

ATM Community National Bank 0

Total SF 25,000

TENANT ROSTER


S U B J E C TP RO P E R T Y

C O M M E R C E S T± 1 2 , 0 0 0 V P D


Suite Tenant LeaseStart

LeaseEnd

SquareFeet

% ofGLA

Contract Rental Rate Rent $ PSF Rent IncreasesOptions Recovery

MethodReimbursement

NotesYear Month $ PSF/Yr. $ PSF/Mo. Date $ PSF/Yr.

Suite 1 Dollar Tree 10/13/18 1/31/24 9,020 36.1% $76,670 $6,389 $8.50 $0.71

3x5yr @ $9.00/SF; $9.50/SF; $10.00/SF

CAM TAX INS

PRS (CAP @ 5% over PY) PRS PRS

Suite 2 Family Dollar 9/7/01 12/31/26 10,960 43.8% $93,000 $7,750 $8.49 $0.71 2x5yr @ 10% Increase

CAM TAX INS

PRS (CAP @ 5% over PY) PRS (CAP @ 5% over PY) PRS (CAP @ 5% over PY)

Suite 3 Vacant (LOI Pending*) 1/1/21 12/31/30 5,020 20.1% NNN

ATM Community National Bank 11/1/12 10/31/22 0 0.0% $6,000 $500 Nov-20 10% Inc. Gross

Occupied Totals - In Place 19,980 79.9% $175,670 $14,639 $8.79 $0.73

Vacant Totals 5,020 20.1% $0 $0 $0.00 $0.00

Totals 25,000 100.0% $175,670 $14,639 $7.03 $0.59

*Call Broker for more details

RENT ROLL


Tenant Name Square Feet

Lease Expiration

In-PlaceRent

% of Revenue

Tenant Type

Credit

Anchor

Dollar Tree 9,020 Jan-24 $76,670 43.6% Anchor National/Credit

Family Dollar 10,960 Dec-26 $93,000 52.9% Anchor National/Credit

Anchor Subtotal 19,980 $169,670 96.6%

PAD

Community National Bank 0 Oct-22 $6,000 3.4% PAD Local/Regional

Pad Subtotal 0 $6,000 3.4%

TOTAL 19,980 $175,670 100%

SUMMARY TENANT PROFILE

OCCUPANCY

Occupied Totals - In Place Vacant Totals

80%

TENANT BREAKDOWN

National/CreditLocal/Regional

RENT BREAKDOWN

Anchor

3%

PAD

97%

20%

80%

20%


Vacant Totals

National/Credit

Year Year End Sq Ft % of GLA Cumulative %

1 2019 0 0% 0%2 2020 0 0% 0%3 2021 0 0% 0%4 2022 0 0% 0%5 2023 0 0% 0%6 2024 9,020 36% 36%7 2025 0 0% 36%8 2026 10,960 44% 80%9 2027 0 0% 80%10 2028 0 0% 80%

Occupied 19,980 80%Vacant 5,020 20%Total 25,000 100%

TENANT EXPIRATION SCHEDULE

YEAR

TENANT EXPIRATIONS

EXP

IRIN

G S

QU

AR

E FE

ET

CU

MU

LATI

VE

% O

F N

RA

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

12,000

10,000

8,000

6,000

4,000

2,000

0

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

0

9,020

10,960

0 0 00 0 0 0


TENANTOVERVIEWS04FAIRFIELDCROSSING


DOLLAR TREEDollar Tree locations carry a mix of housewares, toys, seasonal items, food, health and beauty aids, gifts, and books. At Dollar Tree shop’s most goods are priced at $1 or less while Family Dollar merchandise is usually less than $10. The stores are located in high-traff ic strip centers and malls often in small towns. It purchased fellow discounter, Family Dollar in 2015, bolstering competitive position against Dollar General. The company wants to create a “treasure hunt” type environment where people can bring their whole families.

Dollar Tree operates more than 14,000 Dollar Tree, Deal$, Dollar Bills, and Family Dollar discount stores in 48 US states and the District of Columbia and f ive provinces in Canada. Dollar Tree continues to offer customers products they need at extreme values while keeping their stores bright, clean, organized and stocked. The company carries a broad mix of merchandise that includes many trusted national and regional brands.

15,000LOCATIONS

1986YEAR FOUNDED

FAMILY DOLLARWhen it comes to getting value for everyday items for the entire family in an easy to shop, neighborhood location, Family Dollar is the best place to go. One of the nation’s fastest growing retailers, Family Dollar offers a compelling assortment of merchandise for the whole family ranging f rom household cleaners to name brand foods, f rom health and beauty aids to toys, f rom apparel for every age to home fashions, all for everyday low prices.

Family Dollar serves families in more than 8,000 neighborhoods in 46 states. Texas is its largest market with 1,027 stores, followed by Florida with 584 stores. The Dollar Tree merger with Family Dollar now creates a combined organization with sales exceeding $19 billion annually with more than 13,600 stores across 48 states and f ive Canadian Provinces. The merger has allowed Family Dollar to grow offering broader, more compelling merchandise assortments, with greater values, to a wider array of customers.

CHESAPEAKE, VAHEADQUARTERS


AREAOVERVIEW05FAIRFIELDCROSSING


Fairf ield is a city in Freestone County, Texas. It is the county seat and was founded as such in 1851. Interstate 45 passes through the west side of the city, leading north 88 miles to Dallas and south 152 miles to Houston. Fairf ield is in an ideal location and has ample resources to make tourism the largest industry in the area. Fairf ield retains the charm of small-town America and visualizes a future for the city that can continue enchanting visitors as well. The city is economically viable without losing the ambiance and appeal that have made Fairf ield a place people want to call home.

FAIRFIELD, TX

FAIRFIELDCROSSING


Dallas is a city where big ideas meet big opportunity. The city revolves around a bustling downtown area that expands through an assortment of neighborhoods and commercial centers, supported by a network of freeways that exceeds almost any other city. It boasts the largest urban arts district in the nation; where you’d be more likely to come across a world-class exhibit than a broken pair of chaps. Its past and present is rich in culture, an All-American city that was built on legends.

The central core of Dallas has experienced a steady and significant growth that speaks to its highly diversified economy. It has become a hub for real estate and business, establishing itself as one of the largest concentrations of corporate headquarters for publicly traded companies such as American Airlines, Neiman Marcus, Kimberly-Clark, JCPenney, ExxonMobil and many others. In 2015, Forbes reported that Dallas is “the best place for business and careers” in Texas. It’s the perfect blend of big city living and rustic southern charm.

The Dallas economy is expected to grow over the next couple of decades making it the perfect time to not only invest in Dallas real estate but also relocate. As the 9th largest city in the country, Dallas has something for everyone. It combines clashing images of the city skyline and cowboy vibes. Yet, the city of Dallas describes itself best with the motto: “Big Things Happen Here.”

AREA OVERVIEW

dallas TEXAS

$480 billionCURRENT GDP IN 2018

102,500JOBS ADDED

(2.8% JOB GROWTH FEB 2018-2019)

3.84 MillionDALLAS EMPLOYEES

(THROUGH JULY 2018)

POPULATION

2020 ESTIMATE

2025 PROJECTION

2,218 2,238

4,533 4,637

6,342 6,534

HOUSEHOLDS

2020 ESTIMATE

2025 PROJECTION

823 831 (0.97% )

1,697 1,732 (2.06% )

2,378 2,443 (2.73% )

INCOME

2020 AVG. HOUSEHOLD INCOME

$66,210

$68,768

$71,377

1-MILE

3-MILE

5-MILE

*SUBJECT PROPERTY DEMOGRAPHICS

CONFIDENTIALITY AGREEMENT & DISCLAIMERThis Offering Memorandum contains select information pertaining to the business and affairs of Fairfield Crossing located at 406 E Commerce St, Fairfield, TX 75840 (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1. The Offering Memorandum and its contents are confidential;2. You will hold it and treat it in the strictest of confidence; and3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any

fashion or manner detrimental to the interest of the Seller.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.


EXCLUSIVELY LISTED BY

FAIRFIELDCROSSING

BROKER OF RECORDKyle Matthews

License No. 9005919 (TX)

JOSH BISHOPVP & Director

D: +1 (214) 692-2289M: +1 (315) 730-6228

[email protected] No. 688810 (TX)

CHAD KURZEVP & Managing Director

D: +1 (214) 692-2927M: +1 (562) 480-2927

[email protected] No. 01911198 (CA)

PETER SMELKOAssociate

D: +1 (214) 692-2186M: +1 (972) 979-3349

[email protected] No. 700049 (TX)

11-2-2015

Information About Brokerage ServicesTexas law requires all real estate license holders to give the following informaƟon about

brokerage services to prospecƟve buyers, tenants, sellers and landlords.

TYPES OF REAL ESTATE LICENSE HOLDERS: .• A BROKER is responsible for all brokerage acƟviƟes, 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 informaƟon about the property or transacƟon received by the broker; • Answer the client’s quesƟons and present any offer to or counter-offer from the client; and • Treat all parƟes to a real estate transacƟon 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 wriƩen lisƟng to sell or property management agreement. An owner's agent must perform the broker’s minimum duƟes above and must inform the owner of any material informaƟon about the property or transacƟon known by the agent, including informaƟon 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 wriƩen representaƟon agreement. A buyer's agent must perform the broker’s minimum duƟes above and must inform the buyer of any material informaƟon about the property or transacƟon known by the agent, including informaƟon disclosed to the agent by the seller or seller’s agent.

AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parƟes the broker must first obtain the wriƩen agreement of each party to the transacƟon. The wriƩen agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligaƟons as an intermediary. A broker who acts as an intermediary:

• Must treat all parƟes to the transacƟon imparƟally and fairly; • May, with the parƟes' wriƩen 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 instrucƟons of each party to the transacƟon. • Must not, unless specifically authorized in wriƟng to do so by the party, disclose:

ᴑ that the owner will accept a price less than the wriƩen asking price; ᴑ that the buyer/tenant will pay a price greater than the price submiƩed in a wriƩen offer; and ᴑ any confidenƟal informaƟon or any other informaƟon that a party specifically instructs the broker in wriƟng 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 transacƟon 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 duƟes and responsibiliƟes to you, and your obligaƟons under the representaƟon 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 noƟce is being provided for informaƟon purposes. It does not create an obligaƟon for you to use the broker’s services. Please acknowledge receipt of this noƟce below and retain a copy for your records.

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

Regulated by the Texas Real Estate Commission

Buyer/Tenant/Seller/Landlord Initials

InformaƟon available at www.trec.texas.gov IABS 1-0

Date

Kyle Matthews/Matthews Retail Group Inc. 678067 [email protected] (310) 919-5757

Kyle Matthews 678067 [email protected] (310) 919-5757

fairfield crossing - 406 e commerce st, fairfield, tx 75840...foods, from health and beauty aids to...

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