gates of princeton · 2020-01-06 · franchise: cellular city lte. no of units: 35. 15. tenant...

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GATES OF PRINCETON200 S BEAUCHAMP BLVD | PRINCETON, TX 75407

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EXCLUSIVE MARKETING ADVISORSJARED AUBREYSenior Vice President+1 214 252 1031

[email protected]

MICHAEL AUSTRYVice President

+1 214 252 [email protected]

FUTURE COMMERCIAL DEVELOPMENT

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OFFERING SUMMARY

NET OPERATING INCOME $565,379

YEAR BUILT 2017

GROSS LEASEABLE AREA 21,389 SF

LOT SIZE 2.44 ACRES

OCCUPANCY 100%

PRICE PER SQ FT $406

PRICE: $8,698,000

CAP RATE: 6.50%

200 S BEAUCHAMP BLVDPRINCETON, TX

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INVESTMENT HIGHLIGHTS

Gates of Princeton’s Average Rent is 22% Below Surrounding Retail

Long-Term Triple Net Leases

Stabilized Center at 100% Occupancy

North Beauchamp Blvd is Currently Under Construction - The completed 4-lane divided blvd continuing north will provide more access to the property from several surrounding neighborhood developments

Shadow Anchored to a 190,000 Square Foot Walmart Supercenter – Princeton’s only Walmart

High Quality New Construction – Built in 2017

E-Commerce Resistant, Complementary Tenant Mix – The service oriented tenant lineup is a perfect blend of tenants that serves the Princeton community and the visitors that come to Princeton for their shopping and service needs

Excellent Visibility from Highway 380 – The main thoroughfare Princeton

Strong Traffic Counts – Highway 380 has 31,284 vehicles per day

Texas has NO State Income Tax

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TENANT ROSTER

TENANTS SF GLA % LEASECOMMENCEMENT

LEASEEXPIRATION

ANNUAL BASE RENT TOTAL

LEASETYPE

INFINITY NAIL SPA 2,038 9.53% JUNE 2018 DECEMBER 2028 $56,127 NNN

GAMESTOP 1,600 7.48% SEPTEMBER 2018 SEPTEMBER 2023 $42,400 NNN

HELLO DENTAL 3,000 14.03% AUGUST 2017 AUGUST 2027 $87,390 NNN

H&R BLOCK 1,600 7.48% SEPTEMBER 2017 APRIL 2022 $48,954 NNN

WORKOUT ANYTIME 5,001 23.38% MARCH 2017 AUGUST 2027 $92,519 NNN

GREAT CLIPS 1,292 6.04% MAY 2017 MAY 2022 $33,592 NNN

AT&T WIRELESS 1,979 9.25% MAY 2017 MAY 2022 $59,370 NNN

PEAK REHABILITATION 1,706 7.98% OCTOBER 2018 MAY 2024 $46,062 NNN

WING STOP 1,973 9.22% DECEMBER 2019 NOVEMBER 2029 $57,217 NNN

SMALLCAKES 1,200 5.61% MARCH 2020 FEBRUARY 2025 $31,200 NNN

TOTAL OCCUPIED 21,389 100% $554,830

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PROPERTY MAP

200 S BEAUCHAMP BLVDPRINCETON, TX

GATES OF PRINCETON

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PROPERTY AERIAL

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PROPERTY AERIAL

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PROPERTY AERIAL

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PROPERTY AERIAL PRINCETON RESIDENTIAL UNITS

UNDER CONSTRUCTION 3,861

FUTURE DEVELOPMENT 8,280

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MASS MOBILE DATA STUDY ON GATES OF PRINCETON

This map was created by CBRE’s mobile technology platform called Mass Mobile Data (MMD). MMD is anonymous data gathered from the GPS trackers in one’s devices. By analyzing the sophisticated mobile data, CBRE is able to paint a picture of any property’s customer base.

Gates of Princeton attracts visitors from all over Texas which increases the true market potential for retailers exponentially. The property is not only appealing to the local customer base in Princeton, but also the large amount of people all throughout the state. To illustrate this, the map uses data sourced from a wide range of mobile apps that shows where visitors of Gates of Princeton are coming from. Therefore, each dot creates an accurate picture of customers that have visited Gates of Princeton in the past 12 months. The green outline is Gates of Princeton’s trade area which shows 60% of the site’s customers.

WHERE ARE GATES OF PRINCETON’S VISITORS COMING FROM?

Daytime Location

Nighttime Location

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GameStop Corp. is an American video game, consumer electronics, and wireless services retailer. The company is headquartered in Grapevine, Texas, United States, a suburb of Dallas, and operates 7,276 retail stores throughout the United States, Canada, Australia, New Zealand, and Europe.The company’s retail stores primarily operate under the GameStop, EB Games, ThinkGeek and Micromania brands. GameStop is committed to delivering innovation to consumers anywhere, anytime and any way they want it. Whether looking for new or pre-owned, digital or physical video game titles, the latest in video game hardware or accessories or consumer electronics, gaming and technology enthusiasts are invited to discover and enjoy their favorite products in one of GameStop’s welcoming retail environments.

TENANT OVERVIEW

GAMESTOPTYPE: Electronics

YEARS IN BUSINESS: 35+

NO. OF LOCATIONS: 7,200+

HEADQUARTERS: Grapevine, TX

WEBSITE: www.gamestop.com

SQ FOOTAGE: 1,600 SF

% OF CENTER: 7.48%

GUARANTOR: Corporate

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TENANT OVERVIEW

H&R Block, Inc., or H&R Block, is an American tax preparation company operating in North America, Australia, and India. The company was founded in 1955 by brothers Henry W. Bloch and Richard Bloch. As of 2018, H&R Block operates approximately 12,000 retail tax offices staffed by tax professionals worldwide. It also offers consumer tax software as well as online tax preparation and electronic filing from their website. The Kansas City–based company also offers payroll, and business consulting services. In addition to the company’s traditional retail tax offices, it offers digital tax preparation programs and software. It filed 23 million tax returns worldwide in 2016.

TYPE: Tax Preparation



HEADQUARTERS: Kansas City, MO

WEBSITE: www.hrblock.com


% OF CENTER: 7.48%


H&R BLOCK

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AT&T Inc. is a modern media company whose mission is to inspire human progress through the power of communication and entertainment. AT&T brings together premium video content, a large base of direct-to-consumer relationships, high-speed networks optimized for video and advertising technology to lead the next revolution in technology, media and telecommunications. AT&T has recorded 35 consecutive years of quarterly dividend growth and is a Fortune 10 company.

TYPE: Telecommunication



HEADQUARTERS: Dallas, TX

WEBSITE: about.att.com


% OF CENTER: 9.25%

GUARANTOR: Franchise

TENANT OVERVIEW

AT&T

FRANCHISEFRANCHISE: Cellular City LTE

NO OF UNITS: 35

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TENANT OVERVIEW

Starting in the early 1970’s, WORKOUT ANYTIME founders John Quattrocchi (John Q) and Steve Strickland worked with some of the biggest names in the industry, including Bally and American Fitness. Together, they developed the Workout Anytime Franchise concept starting from humble beginnings in Douglasville, Georgia, in suburban Atlanta. True to their pioneering spirit, they soon found themselves leading the wave of the fastest-growing fitness segment by applying their winning formula of Quality, Value and Convenience. Today, with well over 100 locations across the country and growing, and a team of some of the most experienced health club professionals in the industry; WORKOUT ANYTIME is proof of the founders’ firm belief that it can offer members first class fitness facilities at the lowest cost possible and still turn a profit.

TYPE: Fitness


NO. OF LOCATIONS: 100+

HEADQUARTERS: Alpharetta, GA

WEBSITE: www.workoutanytime.com


% OF CENTER: 23.38%


WORKOUT ANYTIME

FRANCHISEFRANCHISE: Maroon Four Enterprises Inc.

NO OF UNITS: 2

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TENANT OVERVIEW

What began as a small buffalo-style chicken wing restaurant in Garland, Texas, continues to soar to great heights. Today there are more than 1,250 restaurants open across the United States, Mexico, Colombia, Panama, Singapore, Indonesia, Malaysia, UK and the United Arab Emirates.Wingstop quickly became a fan favorite when the company first opened its doors in 1994. Its proprietary recipes, outstanding food and superior customer service created a demand that could only be satisfied by more locations. And in 1997 Wingstop began offering franchises. Today, Wingstop is one of the fastest-growing concepts in the country, attracting top entrepreneurs and operators with the drive and passion to own their own business.

TYPE: Food



HEADQUARTERS: Dallas, TX

WEBSITE: www.wingstop.com


% OF CENTER: 9.22%


WINGSTOP

FRANCHISEFRANCHISE: R3C Norcross LP

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TENANT OVERVIEW

Great Clips is a hair salon franchise with over 4,100 locations across the United States and Canada. It is headquartered in Minneapolis, Minnesota. In 2013, it had system-wide sales of $1.03 billion. The company is known for no-appointment, no-frills salons that provide customers with affordable haircuts. Lean investment and operating costs of franchises have enabled Great Clips to provide low-priced services and has led to ten-year growth for the company. The salons have been noted as a good investment as they are a low-cost franchise with high growth potential.

TYPE: Hair Salon



HEADQUARTERS: Bloomington, MN

WEBSITE: www.greatclips.com


% OF CENTER: 6.04%


GREAT CLIPS

FRANCHISEFRANCHISE: RK, Inc d/b/a Great Clips

NO OF UNITS: 17

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TENANT OVERVIEW

Smallcakes Cupcakery specializes in baking made-from-scratch cupcakes fresh every day. Jeff Martin founded the wildly popular Smallcakes Cupcakery that bakes and frosts 18 signature flavors every morning, fresh from scratch. Smallcakes features seasonal and special flavors created by Jeff. After appearances on the Food Network’s “Cupcake Wars” seasons one, two, and seven as well as on the hit daytime talk show “The View,” Smallcakes became well known and in hot demand in neighborhoods across the nation. Even celebrities have had Smallcakes at their events and weddings. USA TODAY listed Smallcakes as one of the Top Ten Cupcake Places to try in the country.

TYPE: Bakery


NO. OF LOCATIONS: 200+

HEADQUARTERS: Seacrest, FL

WEBSITE: www.smallcakescupcakery.com


% OF CENTER: 5.61%


SMALLCAKES

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TENANT OVERVIEW

Peak Physical Therapy is owned by BenchMark Rehab Partners. BenchMark Rehab Partners is a leading outpatient physical rehabilitation provider with superior expertise in diagnosing individual needs to comprehensively target the issue and treat each patient. While BenchMark operates under several brand names, BenchMark Partners are all guided by a common approach in supporting patients, physical therapists, occupational therapists, hand therapists and health care providers. BenchMark Rehab Partners operates and supports 350+ clinics across 15 states, and offer a wide range of treatments and specialties.

TYPE: Physical Therapy

NO. OF UNITS (TEXAS) 17

WEBSITE: www.bmrp.com


% OF CENTER: 7.93%


PEAK REHABILITATION

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Hello Dental is the dentistry in Princeton, Texas. The company is dedicated to giving its patients the best experience possible with a full range of dental services. Hello Dental welcome adults and children of all ages, and it enjoys building long-term relationships with our patients. Hello Dental believes in personalized attention for every patient. Dr. Cho and Dr. Kang are friendly and experienced dentists with more than 40 years of experience between them. Because of their skills and training, they’re able to offer of many procedures all here at Hello Dental that one may not find in another single location, including implants, wisdom teeth, braces, and children. Convenient, caring and a affordable!

TENANT OVERVIEW

TYPE: Dentistry

WEBSITE: www.hellodentaltx.com


% OF CENTER: 14.03%

GUARANTOR: Private

HELLO DENTAL

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Infinity Nail Spa serves the town of Princeton as one of the most beautiful nail salons that Princeton, TX has to offer. The salon offers everything from manicures, pedicures, gel manicures, dip manicures, eyelash extensions, and much more.

TYPE: Nail Salon

WEBSITE: infinity-nail-spa-nail-salon.business.site


% OF CENTER: 9.53%

GUARANTOR: Private

TENANT OVERVIEW

INFINITY NAIL SPA

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In-P lace NOIMar-20 to Feb-21 $ PSF

Size of Improvements 21,389 SF

REVENUESScheduled Base Rent

Gross Potential Rent $561,933 $26.27Absorption & Turnover Vacancy 0 0.00

Total Scheduled Base Rent 561,933 26.27

CAM Reimbursement 48,735 2.28MGT Reimbursement 23,417 1.09INS Reimbursement 5,890 0.28RET Reimbursement 147,869 6.91

TOTAL GROSS REVENUE 787,844 [1] 36.83General Vacancy Loss 0 0.00

EFFECTIVE GROSS REVENUE 787,844 36.83

OPERATING EXPENSESCommon Area Maintenance (45,643) (2.13)Management Fee (23,635) (1.11)Insurance (5,317) (0.25)Real Estate Taxes (147,869) (6.91)

TOTAL OPERATING EXPENSES (222,465) [2] (10.40)

NET OPERATING INCOME $565,379 $26.43

Capitalization Rate 6.50%

PURCHASE PRICE AS OF MARCH 1, 2020 $8,698,138 $406.66

Physical Occupancy 100.00%Overall Economic Occupancy 100.00%

Notes:

[1] In-Place Net Operating Income is calculated using contractual rents and expense reimbursements from Mar-20 to Feb-21 (with no General Vacancy Loss).In-Place NOI does not include vacant lease-up revenue or downtime due to near-term expirations, but does include future rent increases for existing tenants.Leases that are scheduled to expire within the first fiscal year of the analysis are assumed to continue in place at current rent.Leases with renewal options that expire within the first fiscal year of the analysis are assumed to roll to the option rents with no downtime.

[2] Real Estate Taxes are reassessed based on the sales price. See 'Summary of Financial Assumptions' for details.

IN-PLACE NOI & PRICING SUMMARY

You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.

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RENT ROLL


MarketSquare % of Lease Term Rental Rates Recovery Tenant Leasing Assumption /

Suite Tenant Name Feet Property Begin End Begin Monthly Annually PSF Type Improvements Commissions Market Rent

2,038 9.53% Jun-2018 Dec-2028 Current $4,677 $56,127 $27.54 - - - OptionJul-2020 $4,771 $57,247 $28.09 2.00% - -Jul-2021 $4,866 $58,389 $28.65 1.99% -Jul-2022 $4,963 $59,556 $29.22 2.00%Jul-2023 $5,062 $60,741 $29.80 1.99%Jul-2024 $5,163 $61,955 $30.40 2.00%Jul-2025 $5,266 $63,194 $31.01 2.00%Jul-2026 $5,372 $64,464 $31.63 2.01%Jul-2027 $5,479 $65,751 $32.26 2.00%

Notes: Renewal Option: One 5 year renewal option @ a 2% increase above pr ior rent with 2% annual increases thereafter . Analysis takes option.

1,600 7.48% Sep-2018 Sep-2023 Current $3,533 $42,400 $26.50 - - - Option- -

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Notes: Renewal Option: One 5 year renewal option @ $29.15 /sf/yr . Analysis takes option.

Expense Cap: 7% cap on pr ior year CAM excluding SNOW, UTIL, INS, and RET.

3,000 14.03% Aug-2017 Aug-2027 Current $7,283 $87,390 $29.13 - - - OptionSep-2020 $7,428 $89,130 $29.71 1.99% - -Sep-2021 $7,575 $90,900 $30.30 1.99% -Sep-2022 $7,728 $92,730 $30.91 2.01%Sep-2023 $7,883 $94,590 $31.53 2.01%Sep-2024 $8,040 $96,480 $32.16 2.00%Sep-2025 $8,200 $98,400 $32.80 1.99%Sep-2026 $8,365 $100,380 $33.46 2.01%

Notes: Renewal Option: Two 5 year renewal options each @ a 2% increase above pr ior rent with 2% annual increases thereafter . Analysis takes one option.Termination Option: Right to terminate with 60 days notice upon Dr. David Cho's death or disability such that he is unable to per form his regular duties for a per iod in excess of 60 days.Expense Cap: 7% cumulative compounding cap on CAM excluding INS and RET with an estimated CY2020 basis of $2.36 PSF.

1,600 7.48% Sep-2017 Apr-2022 Current $4,080 $48,954 $30.60 - - - OptionMay-2021 $4,202 $50,423 $31.51 3.00% - -

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General Notes: Rent as of 05/20.Renewal Option: One 5 year renewal option @ a 3% increase above pr ior rent with 3% annual increases thereafter . Analysis takes option.Termination Option: Termination option effective any time with at least 90 days notice and fee of (a) 6 months gross rent, plus (b) unamortized leasing costs.Expense Cap: 7% cumulative compounding cap on CAM excluding INS and RET with an estimated CY2020 basis of $3.54 PSF.

5,001 23.38% Mar-2017 Aug-2027 Current $7,710 $92,519 $18.50 - - - OptionSep-2020 $8,543 $102,521 $20.50 10.81% - -Sep-2023 $9,377 $112,523 $22.50 9.76% -

Notes: Renewal Option: One 5 year renewal option @ (Yrs1-2) $24.50 /sf/yr and (Yrs3-5) $26.50 /sf/yr . Analysis takes option.Expense Cap: 7% cumulative compounding cap on CAM excluding INS and RET with an estimated CY2020 basis of $3.71 PSF.

1,292 6.04% May-2017 May-2022 Current $2,799 $33,592 $26.00 - - - Market - 75.00%Jun-2020 $2,853 $34,238 $26.50 1.92% - -Jun-2021 $2,907 $34,884 $27.00 1.89% -

Notes: Renewal Option: Two 5 year renewal options each @ the lesser of (a) FMV, or (b) 110% of pr ior rent, each with 2% annual increases.Termination Option: Termination option effective any time with at least 90 days notice and fee of (a) 6 months gross rent, plus (b) unamortized leasing costs.Expense Cap: 7% cumulative compounding cap on CAM excluding INS and RET with an estimated CY2020 basis of $3.73 PSF.

1,979 9.25% May-2017 May-2022 Current $4,948 $59,370 $30.00 - - - Option- -

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Notes: Renewal Option: Two 5 year renewal options @ $33.00 /sf/yr and $36.30 /sf/yr . Analysis takes options.Termination Option: Termination option effective any time with at least 90 days notice and fee of (a) 6 months gross rent, plus (b) unamortized leasing costs.Expense Cap: 7% cumulative compounding cap on CAM excluding INS and RET with an estimated CY2020 basis of $4.37 PSF.

1,706 7.98% Oct-2018 May-2024 Current $3,839 $46,062 $27.00 - - - Option- -

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Notes: Renewal Option: Two 3 year renewal options @ $28.09 /sf/yr and $29.78 /sf/yr . Analysis takes options.Expense Cap: 7% cumulative compounding cap on CAM excluding SNOW, UTIL, INS, and RET with an estimated CY2020 basis of $4.08 PSF.

1,973 9.22% Dec-2019 Nov-2029 Current $4,768 $57,217 $29.00 - - - OptionDec-2024 $5,245 $62,939 $31.90 10.00% - -

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General Notes: Analysis assumes tenant will commence paying rent on 12/01/19 at the terms indicated with seller crediting buyer for any outstanding leasing costs at closing.Renewal Option: Two 5 year renewal options @ $35.09 /sf/yr and $38.60 /sf/yr . Analysis takes one option.Expense Cap: 8% cumulative compounding cap on CAM excluding SEC, SNOW, SEASONAL STORM CLEANUP, UTIL, INS, and RET.

1,200 5.61% Mar-2020 Feb-2025 Current $2,600 $31,200 $26.00 - - - Market - 75.00%Mar-2021 $2,678 $32,136 $26.78 3.00% - -Mar-2022 $2,758 $33,100 $27.58 3.00% -Mar-2023 $2,841 $34,093 $28.41 3.00%Mar-2024 $2,926 $35,116 $29.26 3.00%

TOTALS / AVERAGES 21,389 $46,236 $554,830 $25.94

OCCUPIED SqFt 21,389 100.0%VACANT SqFt 0 0.0%

TOTAL SqFt 21,389 100.0%

WEIGHTED-AVERAGE LEASE TERM REMAINING: 5.94 YearsWEIGHTED-AVERAGE LEASE TERM LAPSED: 2.03 YearsWEIGHTED-AVERAGE LEASE TERM FROM INCEPTION:7.97 Years

116B Small Cakes NNN+MGT$26.00 NNN (Shop)

General Notes: Analysis assumes Small Cakes takes this space on 03/01/20 at the terms indicated with seller crediting buyer at closing for any outstanding leasing costs. It is fur ther assumed tenant re imburses net of CAM, MGT, INS, and RET.

112 Peak Rehabilitation NNN+MGT+10%AF, 7%C (Peak) $27.00 NNN (Shop)

116A Wing Stop NNN+MGT+15%AF (CMI)$29.00 NNN (Shop)

109 Great Clips NNN+MGT+15%AF, 7%C (Great Clips) $26.00 NNN (Shop)

110 AT&T Wireless NNN+MGT+15%AF, 7%C (AT&T) $30.00 NNN (Shop)

105 H&R Block NNN+MGT+10%AF, 7%C (H&R) $30.00 NNN (Shop)

106 Workout Anytime NNN+MGT+15%AF, 7%C (Workout) $19.00 NNN (Shop)

104 Hello Dental NNN+MGT+10%AF, 7%C (Dental) $30.00 NNN (Shop)

Co-tenancy: A co-tenancy violation occurs if Wal-Mar t discontinues operations. If a violation occurs, tenant shall pay 50% of base rent in lieu of full base rent that would have otherwise been due, plus expense reimbursements. If a violation persists for six months, tenant may terminate upon 30 days notice. Such r ight to terminate shall cease after twelve months and tenant must choose to vacate or resume full rental obligations.

$28.00 NNN (Shop)Inf inity Nail Spa NNN+MGT+15%AF

(Infinity)100

102 GameStop NNN+10%AF (Gamestop)$27.00 NNN (Shop)

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RENT ROLL







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TOTALS / AVERAGES 21,389 $46,236 $554,830 $25.94


TOTAL SqFt 21,389 100.0%













(Infinity)100







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TOTALS / AVERAGES 21,389 $46,236 $554,830 $25.94


TOTAL SqFt 21,389 100.0%













(Infinity)100


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CASH FLOW PROJECTIONS


Fiscal Year Ending - February 28 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031Physical Occupancy 100.00% 100.00% 98.99% 100.00% 100.00% 99.06% 100.00% 97.75% 98.75% 100.00% 100.00%

Overall Economic Occupancy [1] 100.00% 100.00% 99.30% 100.00% 100.00% 99.34% 100.00% 98.24% 99.07% 100.00% 100.00%

Weighted Average Market Rent $26.35 $27.14 $27.95 $28.79 $29.65 $30.54 $31.46 $32.40 $33.38 $34.38 $35.41

Weighted Average In P lace Rent [2] $26.27 $26.77 $27.26 $27.92 $28.67 $29.16 $29.40 $30.20 $31.00 $31.73 $32.96

Lease SF Expir ing ( Initial Term Only) 0 0 4,871 1,600 2,906 0 0 8,001 2,038 1,973 0

Lease SF Expir ing (Cumulative %) 0.00% 0.00% 22.77% 30.25% 43.84% 43.84% 43.84% 81.25% 90.78% 100.00% 100.00%

[3]FY 2021

REVENUES $/SF/YRScheduled Base Rent

Shop Gross Potential Rent $26.27 $561,933 $572,629 $583,237 $597,245 $613,244 $623,834 $628,737 $648,152 $664,013 $678,691 $704,993Shop Absorption & Turnover Vacancy 0.00 0 0 (5,940) 0 0 (6,028) 0 (16,725) (9,121) 0 0

Total Scheduled Base Rent 26.27 561,933 572,629 577,297 597,245 613,244 617,805 628,737 631,428 654,892 678,691 704,993

CAM Reimbursement 2.28 48,735 50,369 51,268 53,401 55,241 56,686 59,181 59,689 62,193 65,001 66,889MGT Reimbursement 1.09 23,417 24,455 24,854 26,014 26,833 27,127 28,100 27,671 30,152 33,173 34,243INS Reimbursement 0.28 5,890 6,067 6,154 6,383 6,575 6,715 6,975 6,997 7,266 7,570 7,797RET Reimbursement 6.91 147,869 167,670 183,238 190,645 196,364 200,373 208,323 209,761 218,268 227,640 234,469

TOTAL GROSS REVENUE 36.83 787,844 821,190 842,811 873,689 898,257 908,706 931,316 935,546 972,771 1,012,075 1,048,391General Vacancy Loss 0.00 0 0 0 0 0 0 0 0 0 0 0

EFFECTIVE GROSS REVENUE 36.83 787,844 821,190 842,811 873,689 898,257 908,706 931,316 935,546 972,771 1,012,075 1,048,391

OPERATING EXPENSESCommon Area Maintenance (2.13) (45,643) (47,012) (48,423) (49,875) (51,372) (52,913) (54,500) (56,135) (57,819) (59,554) (61,340)Management Fee (1.11) (23,635) (24,636) (25,284) (26,211) (26,948) (27,261) (27,939) (28,066) (29,183) (30,362) (31,452)Insurance (0.25) (5,317) (5,477) (5,641) (5,811) (5,985) (6,164) (6,349) (6,540) (6,736) (6,938) (7,146)Real Estate Taxes (6.91) (147,869) (167,670) (185,092) (190,645) (196,364) (202,255) (208,323) (214,572) (221,009) (227,640) (234,469)

TOTAL OPERATING EXPENSES (10.40) (222,465) (244,795) (264,440) (272,541) (280,668) (288,593) (297,112) (305,314) (314,748) (324,494) (334,407)

NET OPERATING INCOME 26.43 565,379 576,395 578,370 601,148 617,588 620,113 634,204 630,233 658,024 687,581 713,984

CAPITAL COSTSTenant Improvements 0.00 0 0 (8,567) 0 0 (8,695) 0 (22,230) (12,668) 0 (24,409)Leasing Commissions 0.00 0 0 (2,673) 0 0 (2,713) 0 (7,526) (4,104) 0 (7,788)Capital Reserves (0.15) (3,224) (3,321) (3,421) (3,523) (3,629) (3,738) (3,850) (3,966) (4,085) (4,207) (4,333)

TOTAL CAPITAL COSTS (0.15) (3,224) (3,321) (14,660) (3,523) (3,629) (15,145) (3,850) (33,722) (20,857) (4,207) (36,530)

OPERATING CASH FLOW $26.28 $562,155 $573,073 $563,710 $597,624 $613,959 $604,967 $630,354 $596,511 $637,167 $683,374 $677,454

ACQUISIT ION & RESIDUAL SALEAcquisition Cost ($8,698,138) 0 0 0 0 0 0 0 0 0 0 All CashNet Residual Value [4] 0 0 0 0 0 0 0 0 0 0 9,995,773 IRR

CASH FLOW BEFORE DEBT ($8,698,138) $562,155 $573,073 $563,710 $597,624 $613,959 $604,967 $630,354 $596,511 $637,167 $10,679,147 7.93%

MARKET LOAN [5]Loan Funding / Payoff 5,653,790 0 0 0 0 0 0 0 0 0 (4,528,088)Loan Fees (56,538) 0 0 0 0 0 0 0 0 0 0 LeveragedAnnual Debt Service 0 (343,763) (343,763) (343,763) (343,763) (343,763) (343,763) (343,763) (343,763) (343,763) (343,763) IRR

CASH FLOW AFTER DEBT ($3,100,886) $218,392 $229,310 $219,947 $253,861 $270,196 $261,204 $286,591 $252,748 $293,404 $5,807,296 12.41%

NOI Return 6.50% 6.63% 6.65% 6.91% 7.10% 7.13% 7.29% 7.25% 7.57% 7.90%Cumulative Average NOI Return - 6.56% 6.59% 6.67% 6.76% 6.82% 6.89% 6.93% 7.00% 7.09%

NOI Metr ics (Based On In-P lace NOI)Annual % Change in NOI - 1.95% 0.34% 3.94% 2.73% 0.41% 2.27% -0.63% 4.41% 4.49%Compound Annual Growth Rate (CAGR) - 1.95% 1.14% 2.07% 2.23% 1.87% 1.93% 1.56% 1.91% 2.20%

Return on Cost 6.50% 6.62% 6.63% 6.89% 7.08% 7.09% 7.25% 7.18% 7.48% 7.81%Cumulative Average Return on Cost - 6.56% 6.58% 6.66% 6.74% 6.80% 6.87% 6.91% 6.97% 7.05%

UNLEVERAGED Cash Return 6.46% 6.59% 6.48% 6.87% 7.06% 6.96% 7.25% 6.86% 7.33% 7.86%Cumulative Average UNLEVERAGED Cash Return - 6.53% 6.51% 6.60% 6.69% 6.74% 6.81% 6.82% 6.87% 6.97%

LEVERAGED Cash Return 7.04% 7.39% 7.09% 8.19% 8.71% 8.42% 9.24% 8.15% 9.46% 10.95%Cumulative Average LEVERAGED Cash Return - 7.22% 7.18% 7.43% 7.69% 7.81% 8.01% 8.03% 8.19% 8.47%

Debt Service Coverage Ratio (NOI) 1.64x 1.68x 1.68x 1.75x 1.80x 1.80x 1.84x 1.83x 1.91x 2.00xDebt Service Coverage Ratio (CF) 1.64x 1.67x 1.64x 1.74x 1.79x 1.76x 1.83x 1.74x 1.85x 1.99x

Rolling - All Cash IRR N/M 3.12% 5.49% 6.46% 6.64% 7.00% 6.94% 7.35% 7.69% 7.93%Rolling - Leveraged IRR N/M N/M 6.65% 9.38% 9.87% 10.74% 10.55% 11.41% 12.04% 12.41%

[1] This figure takes into account vacancy/credit loss, absorption vacancy, turnover vacancy, and rent abatements.[2] This figure does not include any amount related to expense reimbursements. Only Scheduled Base Rent and Fixed/CPI Increases are included in this calculation, which is based on the weighted-average physical occupancy during each fiscal year.[3] Based on 21,389 square feet.[4] Net Residual Value is calculated by dividing Year 11 NOI by the Residual Cap Rate of 7.00% and applying a 2.00% Cost of Sale.[5] Market Debt based on 65% Loan-to-Value, 4.50% Interest Rate, 30-Year Amortization, and 1.00% Loan Fee.

Cash Flow Project ions Based on Argus Enterprise Version 11.8.3

26

EXPIRATIONS


Suite Tenant End 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Thereafter Available105 H&R Block Apr-22 1,600109 Great Clips May-22 1,292110 AT&T Wireless May-22 1,979102 GameStop Sep-23 1,600112 Peak Rehabilitation May-24 1,706

116B Small Cakes Feb-25 1,200104 Hello Dental Aug-27 3,000106 Workout Anytime Aug-27 5,001100 Infinity Nail Spa Dec-28 2,038

116A Wing Stop Nov-29 1,973

Totals: 0 0 4,871 1,600 1,706 1,200 0 8,001 2,038 1,973 0 0Percent: 0% 0% 23% 7% 8% 6% 0% 37% 10% 9% 0% 0%

Count: 0 0 3 1 1 1 0 2 1 1 0 0Cumulative SF: 0 0 4,871 6,471 8,177 9,377 9,377 17,378 19,416 21,389 21,389 21,389Cumulative %: 0% 0% 23% 30% 38% 44% 44% 81% 91% 100% 100% 100%

Summary of Lease Expirations

Year Leases SF Percent Cumu. SF Cumu. %

2020 0 0 0% 0 0%

2021 0 0 0% 0 0%

2022 3 4,871 23% 4,871 23%

2023 1 1,600 7% 6,471 30%

2024 1 1,706 8% 8,177 38%

2025 1 1,200 6% 9,377 44%

2026 0 0 0% 9,377 44%

2027 2 8,001 37% 17,378 81%

2028 1 2,038 10% 19,416 91%

2029 1 1,973 9% 21,389 100%

Thereafter 0 0 0% 21,389 100%

Available 0 0 0% 21,389 100%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

20

20

20

21

20

22

20

23

20

24

20

25

20

26

20

27

20

28

20

29

Ther

eaft

er

Ava

ilab

le

Annual Cumulative

27

LEASE PROVISIONS


Margin TaxTenant Suite Renewal Options Termination Options Co-Tenancy Clause Expense Caps Reimbursement

Infinity Nail Spa 100 One 5 year renewal option @ a 2% increase above prior rent with 2% annual increases thereafter. Analysis takes option.

Net

GameStop 102 One 5 year renewal option @ $29.15 /sf/yr. Analysis takes option.

A co-tenancy violation occurs if Wal-Mart discontinues operations. If a violation occurs, tenant shall pay 50% of base rent in lieu of full base rent that would have otherwise been due, plus expense reimbursements. If a violation persists for six months, tenant may terminate upon 30 days notice. Such right to terminate shall cease after twelve months and tenant must choose to vacate or resume full rental obligations.

7% cap on prior year CAM excluding SNOW, UTIL, INS, and RET.

No Reimbursement

Hello Dental 104 Two 5 year renewal options each @ a 2% increase above prior rent with 2% annual increases thereafter. Analysis takes one option.

Right to terminate with 60 days notice upon Dr. David Cho's death or disability such that he is unable to perform his regular duties for a period in excess of 60 days.

7% cumulative compounding cap on CAM excluding INS and RET with an estimated CY2020 basis of $2.36 PSF.

Net

H&R Block 105 One 5 year renewal option @ a 3% increase above prior rent with 3% annual increases thereafter. Analysis takes option.

Termination option effective any time with at least 90 days notice and fee of (a) 6 months gross rent, plus (b) unamortized leasing costs.


Net

Workout Anytime 106 One 5 year renewal option @ (Yrs1-2) $24.50 /sf/yr and (Yrs3-5) $26.50 /sf/yr. Analysis takes option.


Net

Great Clips 109 Two 5 year renewal options each @ the lesser of (a) FMV, or (b) 110% of prior rent, each with 2% annual increases.



Net

AT&T Wireless 110 Two 5 year renewal options @ $33.00 /sf/yr and $36.30 /sf/yr. Analysis takes options.



Net

Peak Rehabilitation 112 Two 3 year renewal options @ $28.09 /sf/yr and $29.78 /sf/yr. Analysis takes options.

7% cumulative compounding cap on CAM excluding SNOW, UTIL, INS, and RET with an estimated CY2020 basis of $4.08 PSF.

Net

Wing Stop 116A Two 5 year renewal options @ $35.09 /sf/yr and $38.60 /sf/yr. Analysis takes one option.

8% cumulative compounding cap on CAM excluding SEC, SNOW, SEASONAL STORM CLEANUP, UTIL, INS, and RET.

No Reimbursement

Small Cakes 116B

28

DEMOGRAPHICSPOPULATION (2019)1 MILE 6,4023 MILES 18,4775 MILES 26,5587 MILES 64,598

HOUSEHOLDS (2019)1 MILE 2,0703 MILES 6,1525 MILES 9,2207 MILES 21,720

AVG HH INCOME (2019)1 MILE $83,2363 MILES $84,1655 MILES $89,3777 MILES $93,432

ANNUAL POPULATION GROWTH RATE (1 MILES)2010-2019 11.01%2019-2024 4.91%

TRAFFIC COUNTS (VPD)US HWY 380 31,284

29

With an unemployment rate well below the national average, Princeton’s economy is strong and primed for expansion. Job growth over the next 10 years is expected to be 48.6%, well outpacing the national average. Princeton’s Economic Development Corporation is focused on promoting and encouraging employment and public welfare. The corporation owns an 108 acre Business Park zoned for industrial development.

Princeton’s schools have also been seeing tremendous growth due to the recent major influx in population. This year, there were 5,235 students enrolled at campuses across the district, an increase of 568 students over prior year. The school district is running about 100 students over the pace of their demographic projections, and is making expansion plans to accommodate the growth accordingly.

WHY PRINCETON?

30

Lake Lavon

£¤380

£¤380

NBEAUC HAMP

BL VD

SBE

AUCH

AMP B

LVD

N4 T

HS T

LONGNECKRD

COUNTYROAD

559

FM 1827

COUNTY ROAD 498

COUNTY ROAD 470

FM

546

COUN

TY R

OAD

490

E COLLEGE AVE

COUN

TY R

OAD

447

W PRINCETON DR

FM982

COUNTY ROAD 464

FM 1377

E MONTE CARLO BLVD

SHEA

MAR

LN

E US HIGHWAY 380

MYRICK LN

E PRINCETON DR

MONTE CARLO BLVD

FM 7

5

COUN

TY R

OAD

494

COUNTY ROAD 496

COUNTY ROAD 341

COUN

TYRO

AD45

8

COUN

TYRO

AD40

9

COUNTY ROAD 452

COUNTY ROAD 408

COUNTY ROAD 466

COUNTY ROAD 398

S 2N

D ST

COUN

TY R

OAD

463

COUN

TY R

OAD

561

Source: Esri, DigitalGlobe, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the

LegendLakes100 Yr FloodplainArmy Corps Parcels

Place TypesEstate LivingSuburban LivingCompact NeighborhoodUrban LivingCommunity CommercialHighway CorridorCommercialLifestyle/EntertainmentCenterMixed UseProfessional Services/Light IndustrialManufacturing &WarehousePublic/Semi-PublicParks and Open SpaceRural

0 2,000 4,000Feet N

Future Land Use PlanFM

982

Source: Esri,DigitalGlobe,

FM 9

82

Source: Esri,DigitalGlobe,

December 2018

Lake-Oriented Mixed Use

Potential Downtown Reinvestment Area(Historic Downtown, Mixed Use,

Compact Neighborhood)

N.T.S.N.T.S.See inset at right for additional property within Princeton City Limits

PRINCETONFUTURE LANDUSE MAP

The city of Princeton has seen its population nearly double over the past 5 years, and a full pipeline of residential and commercial developments are in line to maintain and extend this unbelievable growth.

Princeton Crossroads, a 297-acre mixed use development along both sides of Highway 380 near Boomer Lane, will be the largest that the city of Princeton has ever seen. It will include 333 single family homes and 166 townhomes. More and more Princeton land is being zoned for residential developments to accommodate this population and housing boom.

PRINCETON HOUSING BOOM

31

WHY DALLAS -FORT WORTH?

The Dallas-Fort Worth region is an innovation hub with a wealth of resources that make it an ideal business location. The DFW region’s attractive quality of life, strong regional and state economy, low cost of living, skilled labor force, pro-business mindset, and absence of corporate and personal income taxes all contribute to the thriving Dallas-Fort Worth location.

DFW INTERNATIONAL AIRPORT IS THE FOURTH BUSIEST AIRPORT IN THE WORLD

- wikipediea.con

DFW METROPLEX HAS OVER 10,000 CORPORATE

HEADQUARTERS, INCLUDING 22 FORTUNE 500 COMPANIES

- wikipedia.com

DFW ADDED THE MOST RESIDENTS OUT OF ANY

OTHER US METRO IN 2017- Real Capital Markets

#6 BEST PLACES FOR BUSINESS & CAREERS

- Forbes

#4 LARGEST METRO IN THE US

- Forbes

#1 BEST CITY IN US FOR JOBS IS THE DALLAS-PLANO-

IRVING AREA- Forbes

#9 MOST POPULOUS CITY IN THE US

- wikipedia.com

32

DISCLAIMERSCBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and fa-cilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary du-ties owed to the client(s) it represents in the transaction described in this Memorandum.

This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.

This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the “Owner”), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CBRE, Inc. There-fore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other mate-rials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested par-

ties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner.

Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.

The Owner expressly reserved the right, at its sole discretion, to reject any or all ex-pressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.

By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.

3333

GATES OF PRINCETON200 S BEAUCHAMP BLVD

PRINCETON, TX 75407

JARED AUBREYSenior Vice President+1 214 252 [email protected]

MICHAEL AUSTRYVice President+1 214 252 [email protected]

EXCLUSIVE MARKETING ADVISORS

gates of princeton · 2020-01-06 · franchise: cellular city lte. no of units: 35. 15. tenant...

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