offering memorandum - loopnet · • across lbj freeway from cypress waters master planned...

P H I L I P L E V Y972.755.5225SENIOR MANAGING [email protected]

OFFERING MEMORANDUM

2

PROPERTY INFORMATION 3

Executive Summary 4

Complete Highlights 5

Property Description 6

Additional Photos 7

Property Description 8

Additional Photos 9

LOCATION INFORMATION 10

Regional Map 11

Location Maps 12

Aerial Map 13

Aerial Map 14

Aerial Map 15

Aerial Map 16

Site Plan 17

FINANCIAL ANALYSIS 18

Financial Summary 19

Income & Expenses 20

Rent Roll 22

DEMOGRAPHICS 24

Demographics Report 25

Demographics Map 26

IABS 27

Back 8

ContentsConfidentiality & Disclaimer

The information contained in the following Marketing Brochure is proprietary and strictlyconfidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichapand should not be made available to any other person or entity without the written consent ofMarcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverifiedinformation to prospective purchasers, and to establish only a preliminary level of interest in thesubject property. The information contained herein is not a substitute for a thorough duediligence investigation. Marcus & Millichap has not made any investigation, and makes nowarranty or representation, with respect to the income or expenses for the subject property, thefuture projected financial performance of the property, the size and square footage of theproperty and improvements, the presence or absence of contaminating substances, PCB's orasbestos, the compliance with State and Federal regulations, the physical condition of theimprovements thereon, or the financial condition or business prospects of any tenant, or anytenant’s plans or intentions to continue its occupancy of the subject property. The informationcontained in this Marketing Brochure has been obtained from sources we believe to be reliable;however, Marcus & Millichap has not verified, and will not verify, any of the information containedherein, nor has Marcus & Millichap conducted any investigation regarding these matters andmakes no warranty or representation whatsoever regarding the accuracy or completeness of theinformation provided. All potential buyers must take appropriate measures to verify all of theinformation set forth herein.

Non-Endorsement Notice

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant orlessee identified in this marketing package. The presence of any corporation’s logo or name is notintended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporationof Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commerciallisting of Marcus & Millichap, and is solely included for the purpose of providing tenant lesseeinformation about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS

Shops at Regent Cross3601 Regent Boulevard, Irving, TX 75063

TABLE OF CONTENTS

Section 1 PROPERTY INFORMATION

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OFFERING SUMMARY

Sale Price: $10,625,000

Cap Rate: 6.74%

NOI: $716,330

Lot Size: 3.87 Acres

Year Built: 2007

Building Size: 27,611

Price / SF: $384.81

Marcus & Millichap is pleased to offer the opportunity to acquire a 27,611-square foot multi-tenant retail center in a desirablehigh-growth area in Irving, Texas.

PROPERTY OVERVIEW

DEMOGRAPHICS

1 MILE 3 MILES 5 MILES

Total Households 1,693 20,151 66,821

Total Population 4,303 48,331 159,246

Average HH Income $159,497 $110,686 $103,830


PROPERTY INFORMATION | EXECUTIVE SUMMARY

5

SALE HIGHLIGHTS

• Fully Stabilized Multi-Tenant Retail Center | 100% Occupied | All Leases are Triple Net

• Internet-Resistant Tenant Base with Restaurants, Medical Offices, and a Salon

• Tenants Benefit from a Dense Daytime Population Exceeding 273,950 People Within

Five Miles

• Situated on 3.87 Acres with a Large Paved Parking Lot

• Prime Location Near the LBJ Freeway/Belt Line Road Intersection, Five Minutes from

Dallas-Fort Worth International Airport

• Extremely High Traffic Counts | 133,700 Vehicles per Day on LBJ Freeway | 43,000

Vehicles per Day on Belt Line Road | 18,900 Vehicles per Day on Regent Boulevard

• Phenomenal Demographics | Highly Affluent Area with an Average Household Income

of Approximately $159,500 within One Mile | Population is 159,246 Residents Within

Five Miles

• Across LBJ Freeway from Cypress Waters Master Planned Development | Consisting

of 4.5M Square Feet of Office and Retail Space, 10,000 Multi-Family Residences, and

Three Schools Upon Completion | Home to New Corporate Offices for 7-Eleven,

Cheddar's Casual Cafe, Mr. Cooper Mortgage, Meritage Homes, British Telecom and

CoreLogic

• More than 30 Fortune 500 Companies in the Immediate Area, Including ExxonMobil,

Kimberly-Clark, and Flour Corporation

• Numerous Commercial and Residential Development Projects in the Surrounding Area


PROPERTY INFORMATION | COMPLETE HIGHLIGHTS

6

PROPERTY OVERVIEW

Marcus & Millichap is pleased to offer the opportunity to acquire a 27,611-square foot multi-tenant retail center in

a desirable high-growth area in Irving, Texas. The Shops at Regent Cross is fully stabilized at 100 percent

occupancy, and all leases are triple net. The tenant base is comprised of internet-resistant restaurants and

businesses including Salon Suites, Salsa’s Mexican Grill, Subway, Salad Works, Koriyaki Grill, Scott Alexander DDS,

Cavalli Pizza, Primary Care Doctor, Indian Café and others. The tenants benefit from the dense daytime population

of over 273,950 people within five m iles o f t he p roperty. A dditional i ncome i s r eceived f rom M cDonald’s for

parking spaces. Constructed in 2007, the building is situated on 3.87 acres.

LOCATION OVERVIEW

The subject property is located in a prime location near the LBJ Freeway (I-635)/Belt Line Road intersection on

Regent Boulevard, within five m inutes o f D allas-Fort W orth I nternational A irport. Traffic co unts ar e extremely

high, with more than 133,700 vehicles per day on LBJ Freeway, 43,000 vehicles per day on Belt Line Road, and

18,900 vehicles per day on Regent Boulevard. Surrounding retailers include McDonald’s, McAlister’s Deli, Chipotle,

Element Hotel, 7-Eleven, RaceTrac, Starbucks, Jimmy John's, Panda Express, Smoothie King, Jersey Mike’s,

Slim Chickens, Taco Bell, Whiskey Cake, Pin Stack, Taco Cabana, Newk’s Eatery, Amegy Bank, The Dump, The

Home Depot, Texas Roadhouse, Fry’s Electronics, 24 Hour Fitness, and many more.

Over 30 Fortune 500 companies are in the immediate area, including ExxonMobile, Kimberly-Clark, and Fluor

Corporation. The property is directly across from the 1,000-acre Cypress Waters Development, a master-planned

development centered around a 362-acre lake with office, m ulti-family a nd r etail a spects. U pon completion,

Cypress Waters will consist of over 4.5 million square feet of commercial/retail space, 10,000 residences and three

schools. The subject property is surrounded by new development including a 200,000 square foot, LEED certified

“Intellicenter” office c omplex p ositioned o n o ver 1 23 a cres, b uilt w ith e fficiency an d su stainability in mind.

Intellicenter Dallas joins other office facilities in the immediate area for Epsilon, Citigroup, State Farm, FedEx, and

Nissan.


PROPERTY INFORMATION | PROPERTY DESCRIPTION


PROPERTY INFORMATION | ADDITIONAL PHOTOS

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8


CYPRESS WATERS

Cypress Waters is a remarkably untouched 1,000-acre development on a 362-acre lake within five minutes of DFW

International Airport. This land is perfectly placed along the crest of growth between Dallas and Fort Worth.

Cypress Waters will infuse waterfront living with the design principles of new urbanism and sustainable

design. Emphasizing the benefits of a l ive/work community, the development is expected to interconnect over

4.5 million square feet of office space with retail, parks, trails, and a lakeside town center. Fronting LBJ

Freeway and Belt Line Road, the Offices of Cypress Waters has immediate freeway access to any submarket in

North Texas reaching a population base of over 3.5 million people within a 20-mile radius. Mr. Cooper Mortgage,

Cheddar’s Casual Café, Meritage Homes, and 7-Eleven have corporate headquarters located in Cypress Waters.

TOYOTA MUSIC FACTORY

Located between US Highway 114 and Las Colinas Boulevard in Irving, Texas, The Music Factory is DFW’s newest

entertainment venue. This $165 million project is primed to be an all-in-one dining and entertainment destination

for DFW residents and tourists. The centerpiece is a state-of-the-art, 8,000-seat, indoor/outdoor concert hall,

which will be operated by an international concert promoter and serve as a venue to 250+ events annually. The

Music Factory also features a 50,000-square foot plaza with a stage that will host additional events throughout the

year. The project will offer 193,500 square feet of entertainment, retail and restaurant space.

THE SHOPS AT MACARTHUR HILLS

Whole Foods Market, the Austin-based grocer, is the anchor tenant in this new retail development located at the

southwest corner of President George Bush Turnpike and North MacArthur Boulevard. The 45,000-square foot

store will anchor a new 85,000-square foot shopping center on a 12-acre site.

MERCER CROSSING

North Texas’ newest and most accessible business address is located at Mercer Crossing - the 1,000+

acre, mixed-use development located at the crossroads of Interstate 35, Interstate 635, and the President

George Bush Turnpike (PGBT). The prominent location of Mercer Crossing presents an opportunity to develop

a large, mixed-use project, comprised of office, hotel, retail, light industrial, and multi-family residential uses.

PROPERTY INFORMATION | IRVING/LAS COLINAS DEVELOPMENTS


CYPRESS WATERS DEVELOPMENT - OFFICE SITE PLAN

PROPERTY INFORMATION | IRVING/LAS COLINAS DEVELOPMENTS

9

Section 2 LOCATION INFORMATION

1 1

Shops at Regent Cross


LOCATION INFORMATION | REGIONAL MAP

1 2


LOCATION INFORMATION | LOCATION MAPS

1 3


LOCATION INFORMATION | AERIAL MAP

1 4



1 5



1 6



1 7


LOCATION INFORMATION | SITE PLAN

Section 3 FINANCIAL ANALYSIS

1 9

*NOI is based on the future base rent of $716,330 as of 7/01/2019. Current actual rent is $530,868.92. Seller shall credit Buyer the monthly rent differential on a pro rata basis, at closing.

INVESTMENT OVERVIEW

Price $10,625,000

Price per SF $384.81

CAP Rate 6.74%

Total Return (yr 1) $716,330

OPERATING DATA

Gross Income $1,056,842

Operating Expenses $340,512

Net Operating Income $716,330

FINANCING DATA

Down Payment $10,625,000

Loan Type All Cash


FINANCIAL ANALYSIS | FINANCIAL SUMMARY

*Base Rent is based on the future base rent of $716,330 as of 7/01/2019. Current actual rent is $530,868.92. Seller shall credit Buyer the monthly rent differential on a pro rata basis, at closing.

INCOME SUMMARY PER SF

*Base Rent $716,330 $25.94

Real Estate Taxes Reimbursements $203,876 $7.38

Insurance Reimbursements $6,962 $0.25

Common Area Maintenance Reimbursements $100,448 $3.64

Management Fee Reimbursements $29,226 $1.06

Gross Income $1,056,842 $38.28

EXPENSE SUMMARY PER SF

Real Estate Taxes $203,876 $7.38

Insurance $6,962 $0.25

Utilities $30,179 $1.09

Repairs & Maintenance $11,073 $0.40

Landscaping $7,794 $0.28

Porter & Janitorial $8,624 $0.31

Tax Consultant $7,000 $0.25

Trash Disposal $26,464 $0.96

Pest Control $909 $0.03

Fire Protection $1,735 $0.06

Lighting & Electrical $5,476 $0.20

Administrative/Other $1,194 $0.04

Management Fee $29,226 $1.06

Gross Expenses $340,512 $12.33

2 0


FINANCIAL ANALYSIS | INCOME & EXPENSES

Net Operating Income $716,330 $25.94

TENANT

NAME

UNIT

NUMBER

UNIT

SIZE (SF)

% OF

GLA

LEASE

START

LEASE

END

ANNUAL

RENT

ESC

DATE

PRICE

PER YEAR

LEASE

TYPE OPTION

Koriyaki Grill 105 2,000 7.24 5/01/08 4/30/23 $50,000

5/1/2021

$25.00

$26.00

NNN (2) 5-Yr

BurgDawgs 110 1,200 4.35 2/01/11 2/28/21 $30,000

3/1/2020

$25.00

$26.00

NNN (2) 5-Yr

Cavalli Pizza 115 1,800 6.52 4/01/08 3/31/21 $45,000 $25.00 NNN (1) 5-Yr

Salon Suites (1) 120 5,890 21.33 7/01/18 6/30/28 $141,360

7/1/2022

7/1/2025

$24.00

$25.00

$26.00

NNN (1) 5-Yr

Salsa's Mexican Grill 140 2,800 10.14 5/01/08 4/30/23 $78,400

5/1/2020

5/1/2021

5/1/2022

$28.00

$29.00

$30.00

$31.00

NNN None

Indian Cafe 150 1,500 5.43 4/07/08 4/30/28 $42,750 $28.50 NNN None

Scott Alexander, DDS 155 2,100 7.61 5/28/08 5/31/23 $66,402

6/1/2020

6/1/2021

6/1/2022

$31.62

$32.25

$32.90

$33.56

NNN (2) 5-Yr

Burrito Jimmy 160 1,555 5.63 2/01/11 2/28/21 $38,875

3/1/2020

$25.00

$26.00

NNN (2) 5-Yr

(1) Rent Commencement for Salon Suites is 7/01/2019.

(2) Rent Commencement for C Bowl Poke is 10/01/2018.

2 2


FINANCIAL ANALYSIS | RENT ROLL

TENANT

NAME

UNIT

NUMBER

UNIT

SIZE (SF)

% OF

GLA

LEASE

START

LEASE

END

ANNUAL

RENT

ESC

DATE

PRICE

PER YEAR

LEASE

TYPE OPTION

Primary Care Doctor 165 1,414 5.12 2/22/16 8/31/22 $31,108 $22.00 NNN None

C Bowl Poke (2) 170 1,500 5.43 10/09/17 2/28/23 $37,500

3/1/2020

$25.00

$26.00

NNN (2) 5-Yr

Salad Works 180 2,252 8.16 5/20/15 9/30/25 $40,536

10/1/2020

$18.00

$26.00

NNN (2) 5-Yr

AT Donuts 185 1,100 3.98 3/01/08 2/28/23 $28,600

3/1/2020

3/1/2022

$26.00

$27.00

$28.00

NNN None

Subway 195 2,500 9.05 2/13/08 2/28/23 $75,000

3/1/2020

$30.00

$31.00

NNN None

McDonald's (Parking) 1 0.0 $10,800 $10,800.00

Totals/Averages 27,612 $716,331 $25.94 $340,512.00

(1) Rent Commencement for Salon Suites is 7/01/2019.

(2) Rent Commencement for C Bowl Poke is 10/01/2018.

*Total Annual Rent is based on the future base rent of $716,330 as of 7/01/2019. Current actual rent is $530,868.92. Seller shall credit Buyer the monthly rent differential on a pro rata basis, at closing.

2 3


FINANCIAL ANALYSIS | RENT ROLL

Section 4 DEMOGRAPHICS

2 5

1 MILE 3 MILES 5 MILES

Total population 4,303 48,331 159,246

Median age 35.1 33.8 33.2

Median age (Male) 36.6 34.6 33.4

Median age (Female) 34.0 32.8 32.9

Total households 1,693 20,151 66,821

Total persons per HH 2.5 2.4 2.4

Average HH income $159,497 $110,686 $103,830

Average house value $381,207 $328,305 $299,579

Total Population - White 2,243 19,234 76,990

% White 52.1% 39.8% 48.3%

Total Population - Black 419 4,670 20,345

% Black 9.7% 9.7% 12.8%

Total Population - Asian 1,431 12,076 33,565

% Asian 33.3% 25.0% 21.1%

Total Population - Hawaiian 0 9 172

% Hawaiian 0.0% 0.0% 0.1%

Total Population - American Indian 21 169 591

% American Indian 0.5% 0.3% 0.4%

Total Population - Other 83 1,089 4,481

% Other 1.9% 2.3% 2.8%

Total Population - Hispanic 383 3,929 20,247

% Hispanic 8.9% 8.1% 12.7%

* Demographic data derived from 2010 US Census


DEMOGRAPHICS | DEMOGRAPHICS REPORT

2 6

POPULATION 1 MILE 3 MILES 5 MILES

Total population 4,303 48,331 159,246

Median age 35.1 33.8 33.2

Median age (Male) 36.6 34.6 33.4

Median age (Female) 34.0 32.8 32.9

HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES

Total households 1,693 20,151 66,821

# of persons per HH 2.5 2.4 2.4

Average HH income $159,497 $110,686 $103,830

Average house value $381,207 $328,305 $299,579

ETHNICITY (%) 1 MILE 3 MILES 5 MILES

Hispanic 8.9% 8.1% 12.7%

RACE (%)

White 52.1% 39.8% 48.3%

Black 9.7% 9.7% 12.8%

Asian 33.3% 25.0% 21.1%

Hawaiian 0.0% 0.0% 0.1%

American Indian 0.5% 0.3% 0.4%

Other 1.9% 2.3% 2.8%

* Demographic data derived from 2010 US Census


DEMOGRAPHICS | DEMOGRAPHICS MAP

INFORMATION ABOUT BROKERAGE SERVICES Texas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

TYPES OF REAL ESTATE LICENSE HOLDERS: • A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker. • A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.

A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): • Put the interests of the client above all others, including the broker’s own interests; • Inform the client of any material information about the property or transaction received by the broker; • Answer the client’s questions and present any offer to or counter-offer from the client; and • Treat all parties to a real estate transaction honestly and fairly.

A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:

AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner's agent must perform the broker’s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer’s agent.

AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer's agent must perform the broker’s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by the seller or seller’s agent.

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

• Must treat all parties to the transaction impartially and fairly; • May, with the parties' written consent, appoint a different license holder associated with the broker to each party (owner and buyer) to communicate with, provide opinions and advice to,

and carry out the instructions of each party to the transaction. • Must not, unless specifically authorized in writing to do so by the party, disclose:

that the owner will accept a price less than the written asking price; that the buyer/tenant will pay a price greater than the price submitted in a written offer; and any confidential information or any other information that a party specifically instructs the broker in writing not to disclose, unless required to do so by law.

AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.

TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: • The broker’s duties and responsibilities to you, and your obligations under the representation agreement. • Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.

LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker’s services. Please acknowledge receipt of this notice below and retain a copy for your records.

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

11-2-2015

Licensed Broker /Broker Firm Name or Primary Assumed Business Name License No. Email Phone

Designated Broker of Firm License No. Email Phone

Licensed Supervisor of Sales Agent/Associate License No. Email Phone

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

Buyer/Tenant/Seller/Landlord Initials Date

P H I L I P L E V YSenior Managing DirectorDallas Office

972.755.5225 Office817.380.1153 [email protected]: TX 0522087

5001 Spring Valley RoadDallas, TX 75244

offering memorandum - loopnet · • across lbj freeway from cypress waters master planned...

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