PHILIP LEVY OFFERING MEMORANDUM - Levy Retail Group
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TABLE OF CONTENTS SoHigh Village 5250 North Tarrant Parkway, Fort Worth, TX 76137 Confidentiality & Disclaimer Contents The information contained in the following Marketing Brochure is proprietary and strictly PROPERTY INFORMATION 3 confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of LOCATION INFORMATION 8 Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified FINANCIAL ANALYSIS 14 information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due RENT COMPARABLES 20 diligence investigation. Marcus & Millichap has not made any investigation, and makes no DEMOGRAPHICS 27 warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained 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 contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Non-Endorsement Notice Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS 2
PROPERTY INFORMATION | EXECUTIVE SUMMARY SoHigh Village 5250 North Tarrant Parkway, Fort Worth, TX 76137 OFFERING SUMMARY PROPERTY OVERVIEW Sale Price: $5,855,000 Marcus & Millichap is pleased to offer the opportunity to acquire a value-add, multi-tenant retail center in the rapidly growing North Fort Worth market. Cap Rate: 9.77% DEMOGRAPHICS NOI: $571,775 1 MILE 3 MILES 5 MILES Pro Forma Cap Rate: 11.33% Total Households 5,836 45,757 103,023 Total Population 18,275 136,439 294,903 Pro Forma NOI: $663,228 Average HH Income $117,671 $101,131 $99,695 Lot Size: 3.47 Acres Year Built: 2008 Building Size: 31,280 Price / SF: $187.18 4
PROPERTY INFORMATION | PROPERTY DESCRIPTION SoHigh Village 5250 North Tarrant Parkway, Fort Worth, TX 76137 PROPERTY OVERVIEW Marcus & Millichap is pleased to offer the opportunity to acquire a value-add, multi-tenant retail center in Fort Worth, Texas. SoHigh Village is currently 88 percent occupied, providing upside potential in leasing the vacant space. All in-place leases are triple-net. Tenants include The Spa Glam & GQ Salon, RZ Bar, M&K Mediterranean Market, Marco’s Pizza, Tarrant Liquor, Thai Lao Kitchen, Nevaeh Organic Salon, Vape Shop, Krab Kingz Seafood Restaurant, Boutique, and Swad Indian Restaurant. Additional income is derived from new five-year cell tower lease that has nine five-year renewal options. Constructed in 2008, the subject property consists of three buildings situated on 3.47 acres. LOCATION OVERVIEW SoHigh Village is located at the signalized, southeast corner of North Tarrant Parkway and Park Vista Boulevard with additional access from Sohi Drive, providing several ingress and egress points. The signalized intersection and multiple entry points allow easy access and visibility to the subject property from these highly traveled roads. Traffic counts on North Tarrant Parkway are approximately 26,800 vehicles per day, and approximately 13,110 vehicles per day on Park Vista Boulevard. The surrounding area has excellent demographics, with a one-mile average household income exceeding $117,671 and a population of more than 294,900 residents within five miles. A freestanding Natural Grocers is across from the property, and other neighboring retailers include 7-Eleven, Liberty Tax Service, Edward Jones, McDonald’s, RaceTrac, Kroger, and Slim Chickens. The subject property is less than one mile west of a dense retail trade area located at the intersection with Denton Highway (SH-377), with national and regional tenants including Academy Sports and Outdoors, ALDI, T-Mobile, National Tire and Battery, The Home Depot, Target, Kohl’s, Marshalls, Michaels, Sprouts, Staples, PetCo, Dollar Tree, Chase Bank, LA Fitness, Walgreens, Chili’s Bar & Grill, Office Depot, Pier 1, Party City, Ross Dress for Less, World Market, Bed Bath & Beyond, and numerous others. H-E-B Grocery has identified a site for potential development in the northwestern corner of North Tarrant Parkway and Highway 377. 5
PROPERTY INFORMATION | COMPLETE HIGHLIGHTS SoHigh Village 5250 North Tarrant Parkway, Fort Worth, TX 76137 SALE HIGHLIGHTS • Value-Add Retail Investment Opportunity in a Desirable North Fort Worth Market | High Growth, Highly Affluent Area • 31,280-Square Foot Retail Center | Currently 88% Occupied | Significant Upside Potential with an 11.33% Pro Forma Cap Rate • Current Rents are Below Market, Providing Additional Upside • Leases are Triple-Net • Additional Income Derived from a New Cell Tower Lease • Complementary Mix of Internet-Resistant Tenants • Comprised of Three Buildings on 3.47 Acres | Newer 2008 Construction with an Attractive Facade and Landscaping • Located at the Signalized Hard-Corner of North Tarrant Parkway and Park Vista Boulevard | Additional Access from Sohi Drive | Cumulative Traffic Counts are Approximately 40,000 Vehicles per Day • Shadow-Anchored by Natural Grocers | Kroger is Directly Across North Tarrant Parkway | Both are Traffic Drivers to the Area • Less than One Mile West of a Dense Retail Trade Area at the Intersection of State Highway 377 (Denton Highway) | Numerous National and Regional Tenants Including Target, The Home Depot, Kohl’s, LA Fitness, Sprouts, Staples, Dollar Tree, Academy Sports and Outdoors, and Office Depot • H-E-B Grocery has Identified Land in the Northwestern Corner of Highway 377 and North Tarrant Parkway for Potential Future Development • Surrounding Area has Excellent Demographics | One-Mile Average Household Income is $117,671 | Five-Mile Population Exceeds 294,900 Residents 6
PROPERTY INFORMATION | ADDITIONAL PHOTOS SoHigh Village 5250 North Tarrant Parkway, Fort Worth, TX 76137 7
LOCATION INFORMATION | REGIONAL MAP SoHigh Village 5250 North Tarrant Parkway, Fort Worth, TX 76137 SoHigh Village 9
LOCATION INFORMATION | LOCATION MAPS SoHigh Village 5250 North Tarrant Parkway, Fort Worth, TX 76137 10
LOCATION INFORMATION | AERIAL MAPS SoHigh Village 5250 North Tarrant Parkway, Fort Worth, TX 76137 11
LOCATION INFORMATION | AERIAL MAPS SoHigh Village 5250 North Tarrant Parkway, Fort Worth, TX 76137 12
LOCATION INFORMATION | AERIAL MAPS SoHigh Village 5250 North Tarrant Parkway, Fort Worth, TX 76137 13
Section 3 FINANCIAL ANALYSIS
FINANCIAL ANALYSIS | FINANCIAL SUMMARY SoHigh Village 5250 North Tarrant Parkway, Fort Worth, TX 76137 INVESTMENT OVERVIEW CURRENT PRO FORMA Price $5,855,000 $5,855,000 Price per SF $187.18 $187.18 Cap Rate 9.77 % 11.33% Total Return (yr 1) $571,775 $663,228 OPERATING DATA CURRENT PRO FORMA Gross Income $709,000 $810,233 Operating Expenses $137,225 $147,005 Net Operating Income $571,775 $663,228 FINANCING DATA CURRENT PRO FORMA Down Payment $5,855,000 $5,855,000 Loan Type All Cash All Cash 15
FINANCIAL ANALYSIS | INCOME & EXPENSES SoHigh Village 5250 North Tarrant Parkway, Fort Worth, TX 76137 INCOME SUMMARY CURRENT PER SF PRO FORMA PER SF Base Rent $584,028 $21.21 $584,028 $21.21 Vacant Space at Market Rents $0 $0.00 $75,000 $20.00 Signage $4,200 $0.13 $4,200 $0.13 Real Estate Taxes Reimbursements $82,910 $2.65 $94,205 $3.01 Insurance Reimbursements $5,545 $0.18 $6,300 $0.20 Common Area Maintenance Reimbursements $14,522 $0.46 $16,500 $0.53 Management Fee Reimbursements $17,795 $0.57 $30,000 $0.96 Gross Income $709,000 $22.67 $810,233 $25.90 EXPENSE SUMMARY CURRENT PER SF PRO FORMA PER SF Real Estate Taxes $94,205 $3.01 $94,205 $3.01 Insurance $6,300 $0.20 $6,300 $0.20 Utilities $2,700 $0.09 $2,700 $0.09 Landscaping/Porter $13,800 $0.44 $13,800 $0.44 Management Fee $20,220 $0.65 $30,000 $0.96 Gross Expenses $137,225 $4.39 $147,005 $4.70 Net Operating Income $571,775 $18.28 $663,228 $21.20 *Base Rent is based on the future base rent of $584,028 as of January 1, 2020. Current actual rent is $579,228. Seller shall credit Buyer the monthly rent differential on a pro rata basis, at closing. 16
FINANCIAL ANALYSIS | RENT ROLL SoHigh Village 5250 North Tarrant Parkway, Fort Worth, TX 76137 TENANT UNIT UNIT % OF LEASE LEASE ANNUAL ESC PRICE LEASE EXPENSE NAME NUMBER SIZE (SF) GLA START END RENT DATE PER YEAR TYPE OPTION REIMBURSEMENT Marco's Pizza 150 1,560 4.99 4/01/11 3/31/21 $39,468 $25.30 NNN (1) 5-Yr $6,847.53 Hair Salon 132 1,650 5.27 7/01/19 6/30/22 $34,200 $20.73 NNN (1) 3-Yr $7,231.76 Vacant 134 1,950 6.23 Boutique 126 1,650 5.27 7/01/18 6/30/21 $33,000 $20.00 NNN (1) 5-Yr $7,231.76 7/1/2020 $21.09 Tarrant Liquor 110 2,700 8.63 2/01/17 1/31/20 $45,900 $17.00 NNN (1) 3-Yr $11,842.52 Thai Lao Kitchen 130 1,600 5.12 5/01/19 4/30/22 $41,400 $25.88 NNN (1) 5-Yr $7,025.92 5/1/2021 $27.00 Nevaeh Organic Salon 140 1,000 3.2 10/01/17 9/30/20 $24,000 $24.00 NNN (1) 5-Yr $4,391.20 Vape Shop 118 1,320 4.22 7/01/19 6/30/22 $27,600 $20.91 NNN (1) 5-Yr $5,790.90 7/1/2021 $21.82 Krab Kingz Seafood 100 2,750 8.79 9/01/19 9/31/22 $55,200 $20.07 NNN (1) 5-Yr $12,062.08 9/1/2020 $20.90 9/1/2021 $21.82 RZ Bar 112 4,400 14.07 8/01/11 7/31/21 $105,600 $24.00 NNN $19,307.56 Vacant 102 1,800 5.75 17
FINANCIAL ANALYSIS | RENT ROLL SoHigh Village 5250 North Tarrant Parkway, Fort Worth, TX 76137 TENANT UNIT UNIT % OF LEASE LEASE ANNUAL ESC PRICE LEASE EXPENSE NAME NUMBER SIZE (SF) GLA START END RENT DATE PER YEAR TYPE OPTION REIMBURSEMENT Swad Indian Restaurant 100A 1,400 4.48 3/01/18 2/28/23 $33,600 $24.00 NNN (1) 5-Yr $6,147.68 3/1/2021 $25.29 3/1/2022 $26.57 The Spa Glam & GQ Salon 5240 5,300 16.94 6/01/18 5/31/23 $88,860 $16.77 NNN (1) 5-Yr $23,245.92 M&K Mediterranean Market 122 2,200 7.03 6/01/18 5/31/21 $37,200 $16.91 NNN (2) 5-Yr $9,646.92 Cell Tower 1 0.0 11/01/18 10/31/23 $18,000 $18,000.00 Gross (9) 5-Yr Totals/Averages 31,281 $584,028 $18.67 $120,771.75 *Base Rent is based on the future base rent of $584,028 as of January 1, 2020. Current actual rent is $579,228. Seller shall credit Buyer the monthly rent differential on a pro rata basis, at closing. 18
FINANCIAL ANALYSIS | SITE PLAN SoHigh Village 5250 North Tarrant Parkway, Fort Worth, TX 76137 19
Section 4 RENT COMPARABLES
RENT COMPARABLES | RENT COMPS SoHigh Village 5250 North Tarrant Parkway, Fort Worth, TX 76137 SUBJECT PROPERTY 5250 North Tarrant Parkway | Fort Worth, TX 76137 Lease Rate: $20.00 SF/YR Lease Type: NNN Space Size: 3,750 SF Year Built: 2008 Lot Size: 3.47 AC MAGNOLIA PARK 1 5408 Basswood Boulevard | Fort Worth, TX 76137 Lease Rate: $21.00 SF Lease Type: NNN 1 Space Size: 1,586 SF Year Built: 2005 Bldg Size: 13,636 SF Lot Size: 1.77 AC Occupancy: 88% ABC Family Dental, World Blend Coffee, Pizza Buzz, Best Donuts, The Hair Salon SHOPPES AT PARK VISTA 2 5040 North Tarrant Parkway | Fort Worth, TX 76244 Lease Rate: $21.00 SF Space Size: 2,100 SF 2 Year Built: 2007 Bldg Size: 16,760 SF Lot Size: 1.77 AC Occupancy: 87.5% The Ginger Root, Velvet Box, Violet Vapor, Lifetime Cosmetic Dentistry, Jet's Pizza 21
RENT COMPARABLES | RENT COMPS SoHigh Village 5250 North Tarrant Parkway, Fort Worth, TX 76137 NORTH BEACH PLAZA 3 7630 N Beach Street | Fort Worth, TX 76137 Lease Rate: $21.00 SF Lease Type: NNN 3 Space Size: 2,509 SF Year Built: 2001 Bldg Size: 30,405 SF Lot Size: 5.82 AC Occupancy: 92% HealthFirst Medical Group, SporTherapy, Quest Diagnostics, Domino's, MetroPCS NORTH BEACH SHOPPING CENTER 4 8653 North Beach Street | Keller, TX 76244 Lease Rate: $23.00 SF Lease Type: NNN 4 Space Size: 975 SF Year Built: 2006 Bldg Size: 17,322 SF Lot Size: 2.22 AC Occupancy: 94% Golden China, Kumon, Little Caesars, Modern Nail Bar, Goodwill, Check 'N Go SOHIGH 5 5200 North Tarrant Parkway | Fort Worth, TX 76137 Lease Rate: $25.00 SF Lease Type: NNN 5 Space Size: 2,800 SF Year Built: 2010 Bldg Size: 6,011 SF Lot Size: 1.56 AC Occupancy: 53% 7-Eleven, Liberty Tax, Sun Spa 22
RENT COMPARABLES | RENT COMPS SoHigh Village 5250 North Tarrant Parkway, Fort Worth, TX 76137 PARKWOOD SHOPPING CENTER 6 5800 North Tarrant Parkway | Keller, TX 76244 Lease Rate: $29.00 SF Lease Type: NNN 6 Space Size: 1,400 SF Year Built: 2012 Bldg Size: 7,000 SF Lot Size: 1 AC Occupancy: 80% Subway, Milestone Dental QUAIL VALLEY PLAZA 7 5701 North Tarrant Parkway | Keller, TX 76244 Lease Rate: $30.00 SF Lease Type: NNN 7 Space Size: SF Year Built: 2015 Bldg Size: 12,950 SF Lot Size: 1.59 AC Occupancy: 100% FedEx, CiCi's Pizza, Keller Modern Dentistry SHOPS AT NORTH TARRANT 8 5601 North Tarrant Parkway | Fort Worth, TX 76244 Lease Rate: $30.00 SF Lease Type: NNN 8 Space Size: SF Year Built: 2018 Bldg Size: 11,750 SF Lot Size: 2.31 AC Occupancy: 100% Tropical Smoothie, Opulent Nail Bar, Deka Lash, Spice 8 23
RENT COMPARABLES | RENT COMPS SUMMARY SoHigh Village 5250 North Tarrant Parkway, Fort Worth, TX 76137 SUBJECT PROPERTY PRICE/SF/YR AVAILABLE SF BLDG SF OCCUPANCY % SoHigh Village 5250 North Tarrant Parkway $20.00 SF/yr (NNN) 3,750 SF 31,280 SF 88.01% Fort Worth, TX 76137 RENT COMPS PRICE/SF/YR AVAILABLE SF BLDG SF OCCUPANCY % 1 Magnolia Park 5408 Basswood Boulevard $21.00 1,586 SF 13,636 SF 88% Fort Worth, TX 76137 2 Shoppes at Park Vista 5040 North Tarrant Parkway $21.00 2,100 SF 16,760 SF 87.5% Fort Worth, TX 76244 3 North Beach Plaza 7630 N Beach Street $21.00 2,509 SF 30,405 SF 92% Fort Worth, TX 76137 4 North Beach Shopping Center 8653 North Beach Street $23.00 975 SF 17,322 SF 94% Keller, TX 76244 5 SoHigh 5200 North Tarrant Parkway $25.00 2,800 SF 6,011 SF 53% Fort Worth, TX 76137 6 Parkwood Shopping Center 5800 North Tarrant Parkway $29.00 1,400 SF 7,000 SF 80% Keller, TX 76244 7 Quail Valley Plaza 5701 North Tarrant Parkway $30.00 - 12,950 SF 100% Keller, TX 76244 24
RENT COMPARABLES | RENT COMPS SUMMARY SoHigh Village 5250 North Tarrant Parkway, Fort Worth, TX 76137 Shops at North Tarrant 5601 North Tarrant Parkway $30.00 - 11,750 SF 100% 8 Fort Worth, TX 76244 PRICE/SF/YR AVAILABLE SF BLDG SF OCCUPANCY % Totals/Averages $25.00 1,895 SF 14,479 SF 86.81% 25
RENT COMPARABLES | RENT COMPS MAP SoHigh Village 5250 North Tarrant Parkway, Fort Worth, TX 76137 SUBJECT PROPERTY 5250 North Tarrant Parkway | Fort Worth, TX 76137 MAGNOLIA PARK SHOPPES AT PARK VISTA NORTH BEACH PLAZA NORTH BEACH SHOPPING CENTER 1 5408 Basswood Boulevard 2 5040 North Tarrant Parkway 3 7630 N Beach Street 4 8653 North Beach Street Fort Worth, TX 76137 Fort Worth, TX 76244 Fort Worth, TX 76137 Keller, TX 76244 SOHIGH PARKWOOD SHOPPING CENTER QUAIL VALLEY PLAZA SHOPS AT NORTH TARRANT 5 5200 North Tarrant Parkway 6 5800 North Tarrant Parkway 7 5701 North Tarrant Parkway 8 5601 North Tarrant Parkway Fort Worth, TX 76137 Keller, TX 76244 Keller, TX 76244 Fort Worth, TX 76244 26
Section 5 DEMOGRAPHICS
DEMOGRAPHICS | DEMOGRAPHICS MAP & REPORT SoHigh Village 5250 North Tarrant Parkway, Fort Worth, TX 76137 POPULATION 1 MILE 3 MILES 5 MILES Total population 18,275 136,439 294,903 Median age 33.7 32.8 33.7 Median age (Male) 33.4 31.1 32.7 Median age (Female) 33.9 33.9 34.3 HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES Total households 5,836 45,757 103,023 # of persons per HH 3.3 3.0 2.9 Average HH income $117,671 $101,131 $99,695 Average house value $177,460 $186,924 $192,411 28
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. 11-2-2015 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. 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 Regulated by the Texas Real Estate Commission Information available at www.trec.texas.gov IABS 1-0
PHILIP LEVY Senior Managing Director Dallas Office 972.755.5225 Office 817.380.1153 Fax plevy@marcusmillichap.com LICENSE: TX 0522087 5001 Spring Valley Road Dallas, TX 75244
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