PHILIP LEVY SENIOR MANAGING DIRECTOR - OFFERING MEMORANDUM - Levy Retail ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
PHILIP LEVY
972.755.5225
SENIOR MANAGING DIRECTOR
PLEVY@MARCUSMILLICHAP.COM
OFFERING MEMORANDUM
TABLE OF CONTENTS
Frankford Square Shopping Center
5004 Frankford Avenue, Lubbock, TX 79424
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 Executive Summary 4
Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified Property Description 5
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 Complete Highlights 6
diligence investigation. Marcus & Millichap has not made any investigation, and makes no
warranty or representation, with respect to the income or expenses for the subject property, the LOCATION INFORMATION 7
future projected financial performance of the property, the size and square footage of the Regional Map 8
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 Aerial Maps 9
improvements thereon, or the financial condition or business prospects of any tenant, or any 10
tenant’s plans or intentions to continue its occupancy of the subject property. The information
Aerial Maps
contained in this Marketing Brochure has been obtained from sources we believe to be reliable; FINANCIAL ANALYSIS 11
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 Financial Summary 12
matters and makes no warranty or representation whatsoever regarding the accuracy or 13
completeness of the information provided. All potential buyers must take appropriate measures
Income & Expenses
to verify all of the information set forth herein. Rent Roll 14
Site PLan 15
Non-Endorsement Notice
RENT COMPARABLES 16
Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or 17
lessee identified in this marketing package. The presence of any corporation’s logo or name is not Rent Comps
intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation Rent Comps Summary 19
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 Rent Comps Map 20
information about this listing to prospective customers.
DEMOGRAPHICS 21
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. Demographics Map & Report 22
PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS
IABS 23
Special COVID-19 Notice Back Page 24
All potential buyers are strongly advised to take advantage of their opportunities and obligations
to conduct thorough due diligence and seek expert opinions as they may deem necessary,
especially given the unpredictable changes resulting from the continuing COVID-19 pandemic.
Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on
behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing
investment properties and acting as intermediaries between buyers and sellers. Marcus &
Millichap and its investment professionals cannot and will not act as lawyers, accountants,
contractors, or engineers. All potential buyers are admonished and advised to engage other
professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions
involving the property’s physical condition or financial outlook. Projections and pro forma
financial statements are not guarantees and, given the potential volatility created by COVID-19,
all potential buyers should be comfortable with and rely solely on their own projections, analyses,
and decision-making.
2
Section 1 PROPERTY INFORMATION
PROPERTY INFORMATION | EXECUTIVE SUMMARY
Frankford Square Shopping Center
5004 Frankford Avenue, Lubbock, TX 79424
OFFERING SUMMARY PROPERTY OVERVIEW
Sale Price: $4,340,000 Marcus & Millichap is pleased to present the opportunity to acquire Frankford Square Shopping Center, a 41,023-square
Building Size: 41,023 SF foot, multi-tenant retail center located in the southwestern portion of Lubbock, Texas.
Available SF: 1,639 SF
Lot Size: 3.16 Acres DEMOGRAPHICS 1 MILE 3 MILES 5 MILES
Price / SF: $105.79 Total Households 4,773 39,434 80,430
Cap Rate: 8.42% Total Population 10,000 95,391 204,069
NOI: $365,543 Average HH Income $34,662 $53,712 $54,680
Year Built: 2007
4
PROPERTY INFORMATION | PROPERTY DESCRIPTION
Frankford Square Shopping Center
5004 Frankford Avenue, Lubbock, TX 79424
PROPERTY DESCRIPTION
Frankford Square Shopping Center is a 41,023-square foot, multi-tenant retail center
located in the southwestern portion of Lubbock, Texas. The center is currently 96 percent
occupied, with a complementary mix of service-oriented businesses, including The Office
Grill & Sports Bar, Lumber Liquidators, Studio Xfit, The Tilted Chip, Hot and Juicy Seafood,
Members of West Texas Kids Clinic, Edward Jones, Nails Palace, and Onin Staffing.
Additional income is derived from leases for tenant storage in the back portion of the
building. Constructed in 2007, the center is situated on 3.16 acres with concrete parking.
LOCATION DESCRIPTION
The subject property is located on the signalized hard corner of Frankford Avenue and 50th
Street near the intersection of two major thoroughfares, Loop 289 and Marsha Sharp
Freeway (US-62). Frankford Square is easily accessible from multiple ingress and egress
points. Cumulative traffic counts are approximately 26,000 vehicles per day. Ashley
HomeStore is adjacent to the property, and Lowe’s Home Improvement is located directly
across from Ashley. Other retailers in the area include Sherwin-Williams, Cavender’s
Western Outfitter, Chuck E. Cheese, Harley-Davidson, Joe’s Crab Shack, Cinemark Movies
16, Arby’s, HobbyTown, Goodwill, and more. Additional traffic comes from several nearby
hotels, including TownePlace Suites by Marriott, Hampton Inn & Suites, and Homewood
Suites. South Plains Mall is located one and one-half miles southeast of the property,
featuring over 145 retailers and anchored by Dillard’s, JCPenney, Bealls, Barnes & Noble,
and Premiere Cinemas. The surrounding area is densely populated with more than 204,000
residents within a five-mile radius.
The city of Lubbock is the county seat of Lubbock County and nicknamed the “Hub City”,
derived from it serving as the economic, educational, and healthcare hub of the
multicounty region of northern Texas known as the South Plains. Lubbock is home to Texas
Tech University, the sixth-largest college in the state with an enrollment of more than
38,800 undergraduate and graduate students. The city also is home to other college
campuses, including Lubbock Christian University, South Plains College, and Wayland
Baptist University. Air service to the city is provided by Lubbock Preston Smith
International Airport, serving approximately 500,000 passengers annually.
5
PROPERTY INFORMATION | COMPLETE HIGHLIGHTS
Frankford Square Shopping Center
5004 Frankford Avenue, Lubbock, TX 79424
BUILDING INFORMATION
Occupancy % 96.0%
Tenancy Multiple
Year Built 2007
County Lubbock
Ownership Type Fee Simple
PROPERTY HIGHLIGHTS
• 41,023-Square Foot, Multi-Tenant Retail Center
• 96% Occupied | 81% of the Gross Leasable Area has Triple-Net Leases
• Complementary Mix of Service-Oriented, Internet-Resistant Businesses
• Priced at $105 per Square Foot | Well Below Replacement Cost
• Located at the Signalized Hard Corner of Frankford Avenue and 50th Street |
Cumulative Traffic Counts are Approximately 26,000 Vehicles Per Day
• Easily Accessible from Multiple Ingress and Egress Points
• Catty Corner from Lowe's Home Improvement and Adjacent to Ashley HomeStore
• Several Nearby Hotels Provide Additional Traffic to the Area
• Densely Populated with More Than 204,000 Residents Within a Five-Mile Radius
• Approximately 1.5 Miles from South Plains Mall | Anchored by Dillard's, JCPenney,
Bealls, Barnes & Noble, and Premiere Cinemas | Features 145 Retailers
• Lubbock is the "Hub City" for the South Plains | Economic, Educational, and Healthcare
Hub of a Multi-County Region
• Home to Texas Tech University | Current Enrollment Exceeds 38,800 Undergraduate
and Graduate/Law Students
• Air Service Provided by Lubbock Preston Smith International Airport | Approximately
500,000 Passengers Annual (United States Department of Transportation, 2019)
6
Section 2 LOCATION INFORMATION
LOCATION INFORMATION | REGIONAL MAP
Frankford Square Shopping Center
5004 Frankford Avenue, Lubbock, TX 79424
Frankford Square
8
LOCATION INFORMATION | AERIAL MAPS
Frankford Square Shopping Center
5004 Frankford Avenue, Lubbock, TX 79424
9
LOCATION INFORMATION | AERIAL MAPS
Frankford Square Shopping Center
5004 Frankford Avenue, Lubbock, TX 79424
10Section 3 FINANCIAL ANALYSIS
FINANCIAL ANALYSIS | FINANCIAL SUMMARY
Frankford Square Shopping Center
5004 Frankford Avenue, Lubbock, TX 79424
INVESTMENT OVERVIEW CURRENT
Price $4,340,000
Price per SF $105.79
CAP Rate 8.42 %
Total Return (yr 1) $365,543
OPERATING DATA CURRENT
Gross Income $496,083
Operating Expenses $130,540
Pre-Tax Cash Flow $365,543
FINANCING DATA CURRENT
Down Payment $4,340,000
Loan Type All Cash
12FINANCIAL ANALYSIS | INCOME & EXPENSES
Frankford Square Shopping Center
5004 Frankford Avenue, Lubbock, TX 79424
INCOME SUMMARY CURRENT PER SF
Base Rent $393,949 $10.00
Real Estate Taxes Reimbursements $54,173 $1.32
Insurance Reimbursements $14,545 $0.35
Common Area Maintenance Reimbursements $33,415 $0.81
GROSS INCOME $496,083 $12.09
EXPENSE SUMMARY CURRENT PER SF
Real Estate Taxes $69,240 $1.69
Insurance $18,591 $0.45
Common Area Maintenance/Management $42,708 $1.04
GROSS EXPENSES $130,540 $3.18
NET OPERATING INCOME $365,543 $8.91
13FINANCIAL ANALYSIS | RENT ROLL
Frankford Square Shopping Center
5004 Frankford Avenue, Lubbock, TX 79424
EXPENSE LEASE
SUITE TENANT NAME UNIT SIZE (SF) % OF GLA LEASE START LEASE END ANNUAL RENT RENT/SF CHANGES ON CHANGES TO REIMBURSEMENT OPTIONS TYPE
100A Hot & Juicy Seafood 3,896 9.50% 2/1/2020 7/31/2027 $56,940.00 $14.61 8/01/25 $16.14 $12,401.32 None NNN
300 Onin Staffing (1) 1,500 3.66% 11/1/2019 12/31/2023 $24,480.00 $16.32 11/01/21 $16.64 $4,777.77 (1) 1-Yr @ $17.32 NNN
11/01/22 $16.98
400 Members of West Texas Kids Clinic 2,001 4.88% 12/1/2016 11/30/2024 $29,514.72 $14.75 $6,370.36 None NNN
450 Edward D. Jones 1,064 2.59% 9/1/2015 8/31/2023 $16,561.20 $15.57 $3,380.99 (1) 3-Yr @ FMV NNN
460A Vacant 1,639 4.00% $0.00 NNN
500 The Tilted Chip Club 3,158 7.70% 8/22/2018 9/30/2021 $30,127.32 $9.54 $10,012.44 (1) 3-Yr @ 3% Annual Increases
600 Studio Xfit 4,753 11.59% 7/18/2019 7/31/2024 $23,052.00 $4.85 8/01/21 $5.35 $15,129.62 (1) 5-Yr @ 2% Annual Increases NNN
8/01/22 $5.85
8/01/23 $6.35
700 Lumber Liquidators 5,000 12.19% 1/19/2010 5/31/2025 $42,425.28 $8.49 $15,912.86 (1) 5-Yr @ $7.94 NNN
750 Nails Palace 1,592 3.88% 9/1/2019 4/30/2026 $24,198.36 $15.20 5/01/21 $15.66 $5,064.96 NNN
900 The Office Grill & Sports Bar (2) 9,140 22.28% 3/1/2020 5/31/2023 $114,249.96 $12.50 $29,084.37 (2) 3-Yr @ FMV NNN
WH1 PRO Group 1,710 4.17% 4/1/2017 MTM $7,200.00 $4.21 None Gross
WH2 Chris Almaguer 1,088 2.65% 2/1/2018 2/28/2022 $3,600.00 $3.31 None Gross
WH3 PRO Group 1,088 2.65% 4/1/2017 MTM $3,600.00 $3.31 None Gross
WH4 Chris Almaguer 1,194 2.91% 10/1/2018 2/28/2022 $3,600.00 $3.02 None Gross
WH5 Lumber Liquidators 1,088 2.65% 6/1/2015 5/31/2025 $3,600.00 $3.31 (1) 5-Yr NNN
WH6 Titled Chip Club 1,112 2.71% 8/22/2018 9/30/2021 $10,800.00 $9.71 (1) 3-Yr Gross
TOTAL VACANT 1,639 4%
TOTAL OCCUPIED 39,384 96%
TOTAL 41,023 100% $393,949 $102,135
(1) Tenant has an option to terminate the Lease at any time after the 36th Lease Month upon 90 days prior written notice.
(2) Tennat has a one-tine termination option to terminate the Lease at Month 21 by giving Landlord a 30 day written notice.
14FINANCIAL ANALYSIS | SITE PLAN
Frankford Square Shopping Center
5004 Frankford Avenue, Lubbock, TX 79424
15Section 4 RENT COMPARABLES
RENT COMPARABLES | RENT COMPS
Frankford Square Shopping Center
5004 Frankford Avenue, Lubbock, TX 79424
1
QUORUM SHOPPING CENTER
5102 60th Street | Lubbock, TX 79414
1
Lease Rate: $12.00 SF/YR Lease Type: NNN Space Size: 21,550 SF
Year Built: 1986 Bldg Size: 44,202 SF Lot Size: 3.84 Acres
Occupancy: 51.3%
2
66TH STREET RETAIL
6309 66th Street | Lubbock, TX 79424
2
Lease Rate: $16.00 SF/YR Lease Type: NNN Space Size: 19,760 SF
Year Built: 2020 Bldg Size: 22,760 SF Lot Size: 4.48 Acres
Occupancy: 13.2%
3
CORNERSTONE PLAZA
6012 82nd Street | Lubbock, TX 79424
3
Lease Rate: $18.00 SF/YR Lease Type: NNN Space Size: 1,925 SF
Year Built: 2003 Bldg Size: 9,635 SF Lot Size: 1.08 Acres
Occupancy: 80%
17RENT COMPARABLES | RENT COMPS
Frankford Square Shopping Center
5004 Frankford Avenue, Lubbock, TX 79424
4
SHOPPES AT TRINITY TRAILS
6823 82nd Street | Lubbock, TX 79424
4
Lease Rate: $24.00 SF/YR Lease Type: NNN Space Size: 3,737 SF
Year Built: 2019 Bldg Size: 11,050 SF Lot Size: 0.26 Acres
Occupancy: 66.2%
5
THE ESPLANADE
4525 Milwaukee Avenue | Lubbock, TX 79407
5
Lease Rate: $21.00 SF/YR Lease Type: NNN Space Size: 33,762 SF
Year Built: 2016 Bldg Size: 102,000 SF Lot Size: 7.04 Acres
Occupancy: 66.9%
18RENT COMPARABLES | RENT COMPS SUMMARY
Frankford Square Shopping Center
5004 Frankford Avenue, Lubbock, TX 79424
SUBJECT PROPERTY PRICE/SF/YR AVAILABLE SF BLDG SF OCCUPANCY %
Frankford Square Shopping Center
5004 Frankford Avenue $10.00 SF/yr (NNN) 1,639 SF 41,023 SF 96.0%
Lubbock, TX 79424
RENT COMPS PRICE/SF/YR AVAILABLE SF BLDG SF OCCUPANCY %
Quorum Shopping Center
1 5102 60th Street $12.00 21,550 SF 44,202 SF 51.3%
Lubbock, TX 79414
66th Street Retail
2 6309 66th Street $16.00 19,760 SF 22,760 SF 13.2%
Lubbock, TX 79424
Cornerstone Plaza
3 6012 82nd Street $18.00 1,925 SF 9,635 SF 80%
Lubbock, TX 79424
Shoppes at Trinity Trails
4 6823 82nd Street $24.00 3,737 SF 11,050 SF 66.2%
Lubbock, TX 79424
The Esplanade
5 4525 Milwaukee Avenue $21.00 33,762 SF 102,000 SF 66.9%
Lubbock, TX 79407
PRICE/SF/YR AVAILABLE SF BLDG SF OCCUPANCY %
TOTALS/AVERAGES $18.20 16,147 SF 37,929 SF 55.52%
19RENT COMPARABLES | RENT COMPS MAP
Frankford Square Shopping Center
5004 Frankford Avenue, Lubbock, TX 79424
SUBJECT PROPERTY
5004 Frankford Avenue | Lubbock, TX 79424
1 QUORUM SHOPPING 4 SHOPPES AT TRINITY
CENTER 2 66TH STREET RETAIL 3 CORNERSTONE PLAZA TRAILS
5102 60th Street 6309 66th Street 6012 82nd Street 6823 82nd Street
Lubbock, TX 79414 Lubbock, TX 79424 Lubbock, TX 79424 Lubbock, TX 79424
5 THE ESPLANADE
4525 Milwaukee Avenue
Lubbock, TX 79407
20Section 5 DEMOGRAPHICS
DEMOGRAPHICS | DEMOGRAPHICS MAP & REPORT
Frankford Square Shopping Center
5004 Frankford Avenue, Lubbock, TX 79424
POPULATION 1 MILE 3 MILES 5 MILES
Total Population 10,000 95,391 204,069
Average age 28.70 32.00 30.90
Average age (Male) 27.70 30.50 29.60
Average age (Female) 29.60 33.50 32.30
HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES
Total households 4,773 39,434 80,430
# of persons per HH 2.10 2.40 2.40
Average HH income $34,662 $53,712 $54,680
Average house value $97,601 $163,312 $164,971
ETHNICITY (%) 1 MILE 3 MILES 5 MILES
Hispanic 40.0% 28.3% 29.9%
RACE 1 MILE 3 MILES 5 MILES
% White 84.6% 88.4% 88.0%
% Black 8.7% 5.4% 5.8%
% Asian 2.3% 3.0% 3.1%
% Hawaiian 0.2% 0.1% 0.1%
% American Indian 1.2% 1.0% 1.0%
% Other 3.1% 2.0% 2.0%
* Demographic data derived from CoStar Information Group
22INFORMATION 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.
Marcus & Millichap 9002994 tim.speck@marcusmillichap.com 972-755-5200
Licensed Broker /Broker Firm Name or Primary Assumed Business Name License No. Email Phone
Tim A. Speck 432723 tim.speck@marcusmillichap.com 972-755-5200
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 1-0PHILIP 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
You can also read
