PLAINVIEW COMMONS EXCLUSIVE MARKETING - 1601 N I-27 | PLAINVIEW, TX 79072
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PL AINVIE W COMMONS
1 6 0 1 N I -27 | PL A I N V I E W, T X 79 07 2
EXCLUSIVE JARED AUBREY MICHAEL AUSTRY
MARKETING Senior Vice President
+1 214 252 1031
First Vice President
+1 214 252 1115
ADVISORS jared.aubrey@cbre.com michael.austry@cbre.com
OFFERING SUMMARY
PRICE: $2,892,300
CAP RATE: 7.50%
NET OPERATING INCOME $216,926
YEAR BUILT 2014
GROSS LEASEABLE AREA 12,800 SF
LOT SIZE 1.13 ACRES
OCCUPANCY 100%
PRICE PSF $226
PL AI NVI E W COM M ON S
1 60 1 N I -27 | PL AI N VI E W, T X
2
INVESTMENT HIGHLIGHTS
Triple Net Leases – Allows an investor to have limited
landlord responsibilities and ease of management
Shadow Anchored to a 209,000 Square Foot Walmart
Supercenter
Stabilized Shopping Center at 100% Occupancy
Excellent Visibility and Easy Access to and from I-27 –
The main interstate in Plainview
Located in Dense Retail Market – Surrounding retailers
include Walmart Supercenter, Chili’s, Wendy’s, Pizza Hut,
Cinemark, Sprint, Burger King, Taco Bell, Holiday Inn
Express, Tractor Supply, McDonald’s and many more
Strong Traffic Counts – Over 14,500 vehicles travel along
I-27 per day
Business Friendly Climate – Texas is consistently ranked
within the top 3 states for friendly business climate and
strong economy across multiple nationally recognized
media outlets
Texas has NO State Income Tax
3
TENANT ROSTER
LEASE LEASE ANNUAL BASE LEASE
TENANTS SF GLA %
COMMENCEMENT EXPIRATION RENT TOTAL TYPE
VERIZON WIRELESS 2,000 15.63% JANUARY 2015 JANUARY 2023 $59,000 NNN
GREAT CLIPS 1,200 9.38% APRIL 2015 APRIL 2025 $28,200 NNN
GAMESTOP 1,600 12.50% JUNE 2016 JANUARY 2022 $36,000 NNN
AT&T 1,600 12.50% JANUARY 2017 JANUARY 2024 $41,565 NNN
GNC 1,600 12.50% NOVEMBER 2018 NOVEMBER 2022 $24,800 NNN
FACTORY CONNECTION 4,800 37.50% FEBRUARY 2019 JANUARY 2024 $40,080 NNN
TOTAL OCCUPIED 12,800 100% $229,645
4
PROPERTY MAP Amarillo
7 6 M IL E S
Plainview
1
PLAINVIEW COMMONS
1601 N I-27 | PLAINVIEW, TX
ILES
47 M
Lubbock
5
RETAIL AERIAL 6
RETAIL AERIAL 7
OBLIQUE AERIAL 8
SITE PLAN This illustration is for reference purposes only. You are solely responsible for independently verifying the information in this Memorandum. 9 ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.
Plainview Commons
IN-PLACE NOI & PRICING SUMMARY
IN-PLACE NOI AND PRICING SUMMARY
In-Place NOI
Jul-21 to Jun-22 $ PSF Assumptions
Size of Improvements 12,800 SF Commencement Date Jul 1, 2021
In-Place Occupancy 100.00% Operating Expense Source 2020 Actuals Grown 3%
REVENUES Management Fee (% of EGR) 3.00%
Scheduled Base Rent Real Estate Taxes Reassessed? Yes
Gross Potential Rent $229,992 $17.97
Absorption & Turnover Vacancy 0 0.00 Notes
Total Scheduled Base Rent 229,992 17.97 General:
CAM Reimbursement 4,641 0.36 a) Analysis assumes no vacancy loss, capital or leasing costs.
MGT Reimbursement 6,803 0.53 Operating Expenses:
INS Reimbursement 7,357 0.57 a) A CAM Reconciliation file has not been provided. For the purposes of this
RET Reimbursement 62,065 4.85 analysis, in-place tenant expense reimbursements are based on analyst's
understanding of each tenant lease. All expense caps for in-place tenancy are
TOTAL GROSS REVENUE 310,858 24.29
assumed to not be met currently or in CY2021/CY2022.
OPERATING EXPENSES b) Real estate taxes in CY2021 are based on an assumed reassessment and the
Common Area Maintenance (5,267) (0.41) 2020 millage rate of 2.835%.
Management Fee (9,326) (0.73) c) Analysis does not factor in the Texas Margin Tax and assumes a buyer will
Insurance (8,408) (0.66) consult with their tax advisor to evaluate their exposure to this expense.
Real Estate Taxes (70,931) (5.54)
TOTAL OPERATING EXPENSES (93,932) (7.34)
NET OPERATING INCOME $216,926 $16.95
Annual Debt Service (110,983) (8.67)
CASH FLOW AFTER DEBT $105,943 $8.28
Investment Summary
PURCHASE PRICE AS OF JUL 1, 2021 $2,892,345 $225.96 Capitalization Rate 7.50%
Loan Funding (1,880,024) (146.88) Leveraged Cash on Cash Return [1] 10.27%
Origination Fee 18,800 1.47 Debt Service Coverage Ratio (NOI) 1.95x
Loan Constant 5.90%
INITIAL EQUITY $1,031,121 $80.56
Weighted Average Lease Term Remaining 2.15 Years
[1] Market Debt based on 65% Loan-to-Value, 4.25% Interest Rate, 30 Year
Amortization, and a 1.00% Loan Fee.
This page is part of a package and is subject to the disclaimer on the Executive Summary. 5/10/2021 4:46 PM
CBRE Financial Consulting Group 1
10 You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.EXISTING EXPIRATIONS
Plainview Commons
EXISTING LEASE EXPIRATIONS
Suite Tenant End 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Thereafter Available
C Gamestop Jan-22 1,600
E GNC Nov-22 1,600
A Verizon Wireless Jan-23 2,000
F Factory Connection Jan-24 4,800
D AT&T Jan-24 1,600
Totals: 0 3,200 2,000 6,400 1,200 0 0 0 0 0 0 0
Percent: 0% 25% 16% 50% 9% 0% 0% 0% 0% 0% 0% 0%
Count: 0 2 1 2 1 0 0 0 0 0 0 0
Cumulative SF: 0 3,200 5,200 11,600 12,800 12,800 12,800 12,800 12,800 12,800 12,800 12,800
Cumulative %: 0% 25% 41% 91% 100% 100% 100% 100% 100% 100% 100% 100%
100.00%
Summary of Lease Expirations
90.00% Year Leases SF Percent Cumu. SF Cumu. %
80.00% 2021 0 0 0% 0 0%
70.00% 2022 2 3,200 25% 3,200 25%
60.00% 2023 1 2,000 16% 5,200 41%
50.00% 2024 2 6,400 50% 11,600 91%
40.00% 2025 1 1,200 9% 12,800 100%
30.00% 2026 0 0 0% 12,800 100%
20.00% 2027 0 0 0% 12,800 100%
10.00% 2028 0 0 0% 12,800 100%
0.00% 2029 0 0 0% 12,800 100%
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Thereafter
Available
2030 0 0 0% 12,800 100%
Thereafter 0 0 0% 12,800 100%
Annual Cumulative
Available 0 0 0% 12,800 100%
This page is part of a package and is subject to the disclaimer on the Executive Summary. 5/10/2021 4:46 PM
CBRE Financial Consulting Group 2
11 You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.RENT ROLL Plainview Commons
Rent Roll as of 7/1/2021
Square % of Lease Term Rental Rates Recovery
Suite Tenant Name Feet Property Begin End Begin Monthly Annually PSF Type
A Verizon Wireless 2,000 15.63% Jan-2015 Jan-2023 Current $4,917 $59,000 $29.50 - NNN+MGT
Notes:
Renewal Option: One 3 year renewal option @ $31.00 /sf/yr.
Expense Cap: 5% cap on prior year CAM excluding RET (analysis assumes this cap has not been met, no cap history or CAM reconciliation is available).
B Great Clips 1,200 9.38% Apr-2015 Apr-2025 Current $2,350 $28,200 $23.50 - NNN+MGT
Notes:
Renewal Option: One 5 year renewal option @ $25.25 /sf/yr.
Co-tenancy: A co-tenancy violation occurs if Walmart ceases operations or the leasable space in the shopping center becomes 50% or more vacant. If a violation occurs, tenant to pay 50% of base rent until the
earlier of (a) the date the minimum occupancy requirement is satisfied, or (b) expiration of 6 months from the date tenant commences paying reduced rent. Upon the expiration of the reduced rent period, tenant
may terminate upon 30 days notice or resume full rental obligations.
Expense Cap: 5% cap on prior year CAM excluding RET (analysis assumes this cap has not been met, no cap history or CAM reconciliation is available).
C Gamestop 1,600 12.50% Jun-2016 Jan-2022 Current $3,000 $36,000 $22.50 - No Reimbursement
General Notes: Tenant to extend from 07/21-01/22 at a flat $3,000 /Mo in gross rent.
Termination Option: Termination option effective if gross sales are less than $750,000 between 06/20-05/21, or in any lease year thereafter.
Co-tenancy: A co-tenancy violation occurs in the event Walmart discontinues operations. If a violation occurs, tenant shall have the right to pay 50% of minimum rent in lieu of full minimum rent until such vacancy
is cured. If a violation persists for six months, tenant may terminate upon 30 days notice, or resume full rental obligations.
Expense Cap: 5% cap on prior year CAM excluding UTIL, INS, and RET (analysis assumes this cap has not been met, no cap history or CAM reconciliation is available).
Real Estate Tax Cap: Tenant not responsible for any increase in taxes due to a reassessment performed solely as a result of the sale or transfer of the property.
D AT&T 1,600 12.50% Jan-2017 Jan-2024 Current $3,464 $41,565 $25.98 - NNN+5%AF
Feb-2022 $3,533 $42,397 $26.50 2.00%
Feb-2023 $3,604 $43,245 $27.03 2.00%
General Notes: Actual tenant expiration date on 01/25/24.
Renewal Option: One 5 year renewal option @ a 2% increase above the immediately preceding rent, with 2% annual increases thereafter.
Termination Option: Termination option effective any time after 08/01/21 with 6 months notice and fee of unamortized leasing costs.
Expense Cap: 5% cap on prior year CAM excluding SEC, SNOW, UTIL, INS, and RET (analysis assumes this cap has not been met, no cap history or CAM reconciliation is available).
This page is part of a package and is subject to the disclaimer on the Executive Summary. 5/10/2021 4:46 PM
CBRE Financial Consulting Group 3
12 You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.RENT ROLL Plainview Commons
Rent Roll as of 7/1/2021
Square % of Lease Term Rental Rates Recovery
Suite Tenant Name Feet Property Begin End Begin Monthly Annually PSF Type
E GNC 1,600 12.50% Nov-2018 Nov-2022 Current $2,067 $24,800 $15.50 - NNN+MGT
Notes:
Renewal Option: Two 5 year renewal options @ $17.05 /sf/yr and $18.76 /sf/yr.
Expense Cap: 5% cap on CAM (analysis assumes this cap has not been met, no cap history or CAM reconciliation is available).
F Factory Connection 4,800 37.50% Feb-2019 Jan-2024 Current $3,340 $40,080 $8.35 - NNN+MGT
Notes:
Termination Option: If tenant's gross sales do not exceed $400,000, subsequent to the first Lease renewal year and any Lease renewal year thereafter, tenant may terminate upon 60 days notice.
Co-tenancy: A co-tenancy violation occurs if more than 50% of the total shopping center square footage goes dark. If a violation occurs, tenant will pay 3% of monthly store sales in lieu of regular rent, starting the
first day of the next full month after said vacancy. This will not apply if tenant goes dark.
Expense Cap: 10% cumulative cap on CAM excluding RET (analysis assumes this cap has not been met, no cap history or CAM reconciliation is available).
TOTALS / AVERAGES 12,800 $19,137 $229,645 $17.94
OCCUPIED SqFt 12,800 100.0%
VACANT SqFt 0 0.0%
TOTAL SqFt 12,800 100.0%
WEIGHTED-AVERAGE LEASE TERM REMAINING: 2.15 Years
WEIGHTED-AVERAGE LEASE TERM LAPSED: 3.99 Years
WEIGHTED-AVERAGE LEASE TERM FROM INCEPTION 6.14 Years
This page is part of a package and is subject to the disclaimer on the Executive Summary. 5/10/2021 4:46 PM
CBRE Financial Consulting Group 4
13 You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.TENANT OVERVIEW VERIZON WIRELESS TYPE: Telecommunications YEARS IN BUSINESS: 19+ NO. OF LOCATIONS: 2,330+ HEADQUARTERS: Basking Ridge, NJ WEBSITE: www.verizonwireless.com SQ FOOTAGE: 2,000 SF % OF CENTER: 15.63% GUARANTOR: Franchisee Cellco Partnership, doing business as Verizon Wireless, is an American telecommunications company which offers wireless products and services. It is a wholly owned subsidiary of Verizon Communications. Verizon Wireless is the second largest wireless telecommunications provider in the United States after AT&T. It operates a national 4G LTE network covering about 98 percent of the U.S. population, which in December 2015 won or tied for top honors in each category of the RootMetrics RootScore Reports. Verizon Wireless offers mobile phone services through a variety of devices. Its LTE in Rural America Program, with 21 rural wireless carriers participating, covers 2.7 million potential users in 169 rural counties. FRANCHISEE INFORMATION RUSSELL CELLULAR: One of the largest Verizon Wireless Retailers with over 634 locations across the U.S. 14
TENANT OVERVIEW GREAT CLIPS TYPE: Salon YEARS IN BUSINESS: 36+ NO. OF LOCATIONS: 4,100+ HEADQUARTERS: Bloomington, MN WEBSITE: www.greatclips.com SQ FOOTAGE: 1,200 SF % OF CENTER: 9.38% GUARANTOR: Franchisee 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. FRANCHISEE INFORMATION PAJ INC. 15
TENANT OVERVIEW GAMESTOP TYPE: Retailer YEARS IN BUSINESS: 35+ NO. OF LOCATIONS: 7,200+ HEADQUARTERS: Grapevine, TX WEBSITE: www.gamestop.com SQ FOOTAGE: 1,600 SF % OF CENTER: 12.50% GUARANTOR: Corporate 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. 16
TENANT OVERVIEW AT&T TYPE: Telecommunications YEARS IN BUSINESS: 35+ NO. OF LOCATIONS: 2,200+ HEADQUARTERS: Dallas, TX WEBSITE: www.att.com SQ FOOTAGE: 1,600 SF % OF CENTER: 12.50% GUARANTOR: Franchisee 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. FRANCHISEE INFORMATION PRIME COMMUNICATIONS: Largest privately held AT&T Authorized Retailer with over 2,000 locations across the U.S. 17
TENANT OVERVIEW GNC TYPE: Retailer YEARS IN BUSINESS: 84+ NO. OF LOCATIONS: 6,000+ HEADQUARTERS: Pittsburgh, PA WEBSITE: www.gnc.com SQ FOOTAGE: 1,600 SF % OF CENTER: 12.50% GUARANTOR: Corporate GNC Holdings Inc. (General Nutrition Centers) is a Pittsburgh, Pennsylvania-based American company selling health and nutrition related products, including vitamins, supplements, minerals, herbs, sports nutrition, diet, and energy products. The stores also sell health and fitness books and magazines. GNC has more than 6,000 stores in the U.S., including 1,100 store- within-a-store locations within Rite Aid, as well as locations in 49 other countries. In addition, GNC LiveWell currently has 41 Stores located in Brisbane, Sydney, and Melbourne in Australia. 18
TENANT OVERVIEW FACTORY CONNECTION TYPE: Retailer YEARS IN BUSINESS: 45 NO. OF LOCATIONS: 300+ HEADQUARTERS: Guntersville, AL WEBSITE: www.factory-connection.com SQ FOOTAGE: 4,800 SF % OF CENTER: 37.50% GUARANTOR: Corporate Factory Connection specializes in providing the latest fashion apparel for customers in small to medium size markets. Factory Connection offers a wide selection of brand name fashions for Juniors, Misses, Plus, Men’s and Young Men’s, along with accessories and shoes. Buying from the industry’s leading fashion manufacturers allows Factory Connection to offer name brand and specialty store fashions at prices that are 25% to 70% below regular retail. Because Factory Connection ships new merchandise twice a week every week – sometimes based on special limited-quantity purchases – customers know that frequent shopping pays big dividends. Factory Connection provides the opportunity to find the latest fashions at the right price, offering a great shopping experience for small to mid-size communities. 19
DEMOGRAPHICS POPULATION (2020) 1 MILE 5,314 3 MILES 20,111 5 MILES 25,234 7 MILES 27,566 HOUSEHOLDS (2020) 1 MILE 2,031 3 MILES 6,838 5 MILES 8,476 7 MILES 8,642 AVG HH INCOME (2020) 1 MILE $70,073 3 MILES $60,065 5 MILES $58,185 7 MILES $58,552 TRAFFIC COUNTS (VPD) N I-27 23,231 20
WHY PLAINVIEW?
Plainview, Texas: population 20,717; opportunities are limitless.
Less than an hour from Lubbock and just over an hour from
Amarillo, Plainview, Texas, sits in a location that makes it perfect
for businesses and families alike. With inexpensive gas and electric
rates, a supportive and competitive business climate, and low taxes,
Plainview is a city that values community life.
Plainview, Texas is Growing Opportunity for business and industry.
An aggressive and supportive business climate, low taxes,
inexpensive energy and enviable logistics make the Plainview /
Hale County Community worthy of serious consideration for your
business and industry expansion.
LOW TAXES
Texas is business friendly. We have no personal
income tax, no state property tax, and no unitary
tax.
INEXPENSIVE ENERGY
Companies in Plainview and Hale County enjoy
electric and natural gas rates that are among the
lowest in the nation. These bottom line savings
help make the area an attractive operating
environment for business.
STRONG COMMUNITY DRIVEN CITY
Plainview is one of those cities that still values the
community life and family interaction that brings
people together.
SOURCE: PLAINVIEW HALE COUNTY ECONOMIC DEVELOPMENT CORPORATE
21DISCLAIMERS
CBRE, Inc. operates within a global family of companies with many subsidiaries In this Memorandum, certain documents, including leases and other materials,
and/or related entities (each an “Affiliate”) engaging in a broad range of com- are described in summary form. These summaries do not purport to be complete
mercial real estate businesses including, but not limited to, brokerage services, nor necessarily accurate descriptions of the full agreements referenced. Inter-
property and facilities management, valuation, investment fund management ested parties are expected to review all such summaries and other documents
and development. At times different Affiliates may represent various clients with of whatever nature independently and not rely on the contents of this Memoran-
competing interests in the same transaction. For example, this Memorandum dum in any manner.
may be received by our Affiliates, including CBRE Investors, Inc. or Trammell
Crow Company. Those, or other, Affiliates may express an interest in the prop- Neither the Owner or CBRE, Inc, nor any of their respective directors, officers,
erty described in this Memorandum (the “Property”) may submit an offer to Affiliates or representatives make any representation or warranty, expressed or
purchase the Property and may be the successful bidder for the Property. You implied, as to the accuracy or completeness of this Memorandum or any of its
hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any contents, and no legal commitment or obligation shall arise by reason of your
involved Affiliate will have any obligation to disclose to you the involvement of receipt of this Memorandum or use of its contents; and you are to rely solely
any Affiliate in the sale or purchase of the Property. In all instances, however, on your investigations and inspections of the Property in evaluating a possible
CBRE, Inc. will act in the best interest of the client(s) it represents in the trans- purchase of the real property.
action described in this Memorandum and will not act in concert with or other-
wise conduct its business in a way that benefits any Affiliate to the detriment of The Owner expressly reserved the right, at its sole discretion, to reject any or all
any other offeror or prospective offeror, but rather will conduct its business in a expressions of interest or offers to purchase the Property, and/or to terminate
manner consistent with the law and any fiduciary duties owed to the client(s) it discussions with any entity at any time with or without notice which may arise as
represents in the transaction described in this Memorandum. a result of review of this Memorandum. The Owner shall have no legal commit-
ment or obligation to any entity reviewing this Memorandum or making an offer
This is a confidential Memorandum intended solely for your limited use and ben- to purchase the Property unless and until written agreement(s) for the purchase
efit in determining whether you desire to express further interest in the acquisi- of the Property have been fully executed, delivered and approved by the Owner
tion of the Property. and any conditions to the Owner’s obligations therein have been satisfied or
waived.
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 By receipt of this Memorandum, you agree that this Memorandum and its con-
the owner of the Property (the “Owner”), to be all-inclusive or to contain all or tents are of a confidential nature, that you will hold and treat it in the strictest
part of the information which prospective investors may require to evaluate a confidence and that you will not disclose this Memorandum or any of its con-
purchase of real property. All financial projections and information are provided tents to any other entity without the prior written authorization of the Owner or
for general reference purposes only and are based on assumptions relating to CBRE, Inc. You also agree that you will not use this Memorandum or any of its
the general economy, market conditions, competition and other factors beyond contents in any manner detrimental to the interest of the Owner or CBRE, Inc.
the control of the Owner and CBRE, Inc. Therefore, all projections, assumptions
and other information provided and made herein are subject to material varia- If after reviewing this Memorandum, you have no further interest in purchasing
tion. All references to acreages, square footages, and other measurements are the Property, kindly return this Memorandum to CBRE, Inc.
approximations. Additional information and an opportunity to inspect the Prop-
erty will be made available to interested and qualified prospective purchasers.
22PL AINVIE W COMMONS
1 6 0 1 N I -27 | PL A I N V I E W, T X 79 07 2
EXCLUSIVE JARED AUBREY MICHAEL AUSTRY
MARKETING Senior Vice President
+1 214 252 1031
First Vice President
+1 214 252 1115
ADVISORS jared.aubrey@cbre.com michael.austry@cbre.comYou can also read
