nicole key retail leased investment · 2017-11-20 · batteries plus bulbs, shell gas, and more 920...

Nicole Key

OFFERING MEMORANDUMOFFERING MEMORANDUM

Retail Leased Investment920 Dallas Drive· Denton, Texas

CONFIDENTIALITY & DISCLOSURE AGREEMENT

Sacramento, California Reno, Nevada

920 Dallas Dr.Denton, Texas

OFFERING MEMORANDUM 2

TABLE OF CONTENTS920 Dallas Dr.

Denton, Texas


EXECUTIVE & INVESTMENTSUMMARY

4

PROPERTY OVERVIEW 5

PROPERTY SUMMARY 6

FINANCIAL OVERVIEW& RENT ROLL 7-8

TENANT PROFILES 9-11

MARKET INFORMATION 12

MARKET PROFILE 13

AERIAL | MARKET 14

AERIAL | REGIONAL 15

DEMOGRAPHICS 16-18

EXECUTIVE & INVESTMENT SUMMARY

INVESTMENT SUMMARY

MARKET VALUE $1,645,000

PRICE / SQUARE FOOT $126.78

CAP RATE 7.50%

NOI $123,372

OCCUPANCY 100%

GLA ± 12,975 Sq Ft

LOT SIZE ± 1.2063 Acres

ASSET HIGHLIGHTS

• 100% leased multi-tenant investment

• 49% of the property income is secured by a corporate guaranty

• Located on one of Denton’s highly trafficked thoroughfares

• Area Co-Tenants include Advanced Auto Parts, Napa Auto Parts, Batteries plus Bulbs, Shell Gas, and more


TENANTS

• Kelly-Moore Paint Co. – occupant since 1986

• The Way Impact Christian Center


Alegre Vista Drive

PROPERTY OVERVIEW920 Dallas Dr.

Denton, Texas


PROPERTY SUMMARY

LOCATION:920 DALLAS DRIVEDenton, Texas

APN: R122061

GLA: ± 12,975 sq ft

LOT SIZE: ± 1.2063 Acres

YEAR BUILT: 1986

ZONING:DC-G- Downtown Commercial General

TRAFFIC COUNTS:

Dallas Drive @ Site: 30,000 ADT

Reno, Nevada



FINANCIAL OVERVIEW Reno, Nevada

ESTIMATED OPERATING EXPENSES

Expense Type Owner's 2016 Estimated

2017 ProformaAmount

Taxes $14,177 $41,157

Insurance $2,304 $2,350

CAM $6,144 $6,267

Total $22,625 $49,774

Annual Per Square Foot $1.74 $3.84Monthly Per Square Foot $0.15 $0.32

ASSUMPTIONSProforma property tax rate: 2.502%

FINANCIAL STRUCTURE

Scheduled Gross Income Actual-In-Place

Rent ProformaAmount

Base Rent $123,372 $123,372Expense Recoveries $22,625 $49,774Other Income $0 $0Lease-Up Available Space $0 $0

Effective Gross Income $145,997 $173,146

Less Expenses $22,625 $49,774

Net Operating Income $123,372 $123,372



RENT ROLL

Notes:

Kelly-MooreRent Increases: 8% increase every 5 yearsOptions: Four (4) options at 5-years per option

Denton County FriendsRent Commencement: October 1, 2017Option: One (1) option at 5-years per option

Option Rent the greater of CPI or 110% of prior base term

Reno, Nevada



Suite TenantSte Size (sq ft)

MonthlyBase Rate

% of TotalBldg Sq Ft

Mon Rent(PSF)

Ann Rent(PSF)

% of TotalBldg Income

Mon Mkt Rent (PSF)

Ann Mkt Rent (PSF)

Lease Type

StartDate

ExpDate

Kelly-Moore 6,323 $6,955 48.73% $1.10 $13.20 67.6% $1.10 $13.20 NNN COE 10 yrs

Denton Country Friends of the Family Inc. 6,652 $3,326 51.27% $0.50 $6.00 32.4% $0.70 $8.40 NNN May – 17 Sept - 22

Total 12,975 $10,281 100.0%

Leased 12,975 100.0%

Available 0 0.0%

TENANT PROFILE TENANT PROFILE


TENANT PROFILE About Kelly-Moore Paints

Mission: To provide high quality, innovative products with exceptional service at a fair value.

History:In 1946, William H. Kelly and William E. Moore recognized the unique needs of professional painting contractorsfor top-quality paint products and knowledgeable, efficient service at a fair price. This philosophy has allowedKelly-Moore to grow from a single manufacturing facility and store in San Carlos, California, to one of the largestemployee-owned paint companies in the United States. Its reputation for quality products is unsurpassed in theindustry. The company produces some of the most technologically advanced paint products and sets theindustry standard for new product development and quality control, and retains the reputation of "The Painter'sPaint Store.”

Not just your neighborhood paint store:Kelly Moore has approximately 1,300 employees with nearly 150 retail paint stores and 120 IndependentDealers.

Employee Owned – You are working with an owner. In 1998, Mr. and Mrs. William E. Moore established theKelly-Moore Paint Company Employee Stock Ownership Program (ESOP). Creating this program ensured theMoore Family tradition of providing only the highest level of service will continue for years to come. Eachemployee-owner is committed to offering the best paint products along with exceptional customer serviceeveryday.

Manufacturing - Made in America Since 1946:Kelly-Moore has two strategically located, state-of-the-art manufacturing facilities in key markets: San Carlos,California and Hurst, Texas (outside Dallas). Our reputation for quality products is unsurpassed in theindustry. Kelly-Moore produces some of the most technologically advanced paint products and sets the industrystandard for new product development and quality control.Our manufacturing facility in San Carlos is also the recipient of five widely recognized green business awardsfrom the State of California and San Mateo County for outstanding efforts to reduce pollution and solid wasteand conserve water, energy and other natural resources.

Oklahoma City, Oklahoma



TENANT PROFILE About Denton County Friends of the Family, Inc.


ABOUT

Denton County Friends of the Family is dedicated to providing compassionate, comprehensive services to those impacted byrape, sexual abuse, and domestic violence, while partnering with their community to promote safety, healing, and prevention. Itis a grassroots organization that was founded in 1980.

Throughout the years, the agency has remained true to its purpose and mission and operates a variety of programs and servicesto meet the needs of those seeking assistance. The agency serves over 7,000 individuals a year through the following programs:24-hour crisis line, 32-bed protective residential shelter, adult counseling program, child and adolescent program, structuredcommunity education, violence intervention and prevention, outreach advocacy, legal advocacy accompaniment, thrift store,hospital accompaniment, and involvement in the Sexual Assault Nurse Examiner program. Several thousand children areeducated each year through our community education programs.

Today, DCFOF is the sole provider in Denton County of shelter and free outreach services to those who have been affected byrelationship violence and/or sexual assault. DCFOF receives funding from federal, state and local government agencies, theUnited Ways of Denton County and Lewisville, corporations, foundations, groups, and individuals. The agency looks forward tocarefully designed expansion of existing programs and new initiatives to increase awareness of DCFOF services and to help endthe generational cycle of violence.

https://www.dcfof.org/about-us


MARKET INFORMATION 920 Dallas Dr.

Denton, Texas


MARKET PROFILE920 Dallas Dr.

Denton, Texas

Denton’s Top Employers:

Company / Organization # ofEmployees

University of North Texas 8,887

Denton Independent School District 3,300

Peterbilt Motors 2,100

Texas Woman's University 1,787

Denton County 1,554

Denton is a city in the U.S. state of Texas and the county seat of Denton County. Located on the north end of the Dallas–Fort Worth metroplex in North Texas on Interstate 35.

• Population in Denton is currently113,383, making it the 27th most populous city in Texas and the 11th-largest city in the Dallas–Fort Worth metroplex

• I-35E and I-35W, which split in Hillsboro south of the Metroplex and come north through Dallas and Fort Worth respectively, rejoin near the University of North Texas campus in the southwest part of Denton to form Interstate 35 as it continues north on its way to Oklahoma

• Denton is served by the Denton County Transportation Authority (DCTA), which operates express bus service to downtown Dallas and Lewisville

• The educational services, health and social services, manufacturing, and general retail sectors employ over 20,000 people in Denton. The city's three largest educational institutions, including the University of North Texas, Denton Independent School District, and Texas Woman's University, are the largest employers, employing almost 12,000 people

• Two major hospitals operate in Denton: Denton Regional Medical Center and Texas Health Presbyterian Hospital Denton


2

MARKET AERIAL


Cent

re P

lace

Driv

e


2

REGIONAL AERIAL



DEMOGRAPHICSDenton, Texas

10 mi radius

5 mi radius

1 mi radius


DEMOGRAPHICS

POPULATION 1 mile 5 miles 10 milesEstimated Population (2017) 13,618 141,957 259,857

Projected Population (2022) 16,243 166,187 304,582

Census Population (2010) 12,238 124,485 218,906

Projected Annual Growth (2017-2022) 2,625 3.9% 24,230 3.4% 44,725 3.4%

Historical Annual Growth (2010-2017) 1,380 1.6% 17,472 2.0% 40,951 2.7%

HOUSEHOLDSEstimated Households (2017) 6,136 52,100 92,690

Projected Households (2022) 7,095 59,732 105,933

Census Households (2010) 5,562 45,971 78,597

Projected Annual Growth (2017-2022) 960 3.1% 7,632 2.9% 13,244 2.9%

Historical Annual Change (2000-2017) 1,416 1.8% 16,993 2.8% 38,451 4.2%

AVERAGE HOUSEHOLD INCOME Estimated Average Household Income (2017) $45,116 $70,576 $92,688

Projected Average Household Income (2022) $53,119 $87,026 $114,642

Census Average Household Income (2010) $40,287 $60,288 $79,241

Projected Annual Change (2017-2022) $8,003 3.5% $16,450 4.7% $21,953 4.7%

Historical Annual Change (2000-2017) $3,447 0.5% $19,400 2.2% $27,381 2.5%

MEDIAN HOUSEHOLD INCOME Estimated Median Household Income (2017) $41,129 $62,359 $81,831

Projected Median Household Income (2022) $47,781 $72,459 $95,311

Census Median Household Income (2010) $30,091 $50,758 $67,128

Projected Annual Change (2017-2022) $6,652 3.2% $10,101 3.2% $13,480 3.3%

Historical Annual Change (2000-2017) $9,744 1.8% $21,175 3.0% $28,454 3.1%



RACE AND ETHNICITY 1 mile 5 miles 10 milesTotal Population (2017) 13,618 141,957 259,857

White (2017) 8,568 62.9% 100,075 70.5% 199,398 76.7%

Black or African American (2017) 2,399 17.6% 15,922 11.2% 22,009 8.5%

American Indian or Alaska Native (2017) 80 0.6% 1,089 0.8% 1,824 0.7%

Asian (2017) 1,118 8.2% 9,144 6.4% 13,751 5.3%

Hawaiian or Pacific Islander (2017) 4 - 135 0.1% 218 0.1%

Other Race (2017) 963 7.1% 10,946 7.7% 15,048 5.8%

Two or More Races (2017) 486 3.6% 4,646 3.3% 7,610 2.9%

EDUCATIONAL ATTAINMENT (2014)Adult Population Age 25 Years or Over 7,024 83,202 163,291

Elementary (Grade Level 0 to 8) 461 6.6% 4,380 5.3% 6,386 3.9%

Some High School (Grade Level 9 to 11) 564 8.0% 4,606 5.5% 7,222 4.4%

High School Graduate 1,586 22.6% 17,038 20.5% 33,256 20.4%

Some College 1,422 20.3% 20,074 24.1% 39,622 24.3%

Associate Degree Only 444 6.3% 5,860 7.0% 11,890 7.3%

Bachelor Degree Only 1,607 22.9% 19,595 23.6% 42,869 26.3%

Graduate Degree 939 13.4% 11,648 14.0% 22,047 13.5%

Any College (Some College or Higher) 4,412 62.8% 57,177 68.7% 116,427 71.3%

College Degree + (Bachelor Degree or Higher) 2,546 36.2% 31,242 37.6% 64,916 39.8%

HOUSING Total Housing Units (2017) 6,402 53,633 95,205

Total Housing Units (2010) 6,072 49,729 84,141

Historical Annual Growth (2010-2017) 329 0.8% 3,904 1.1% 11,065 1.9%

Housing Units Occupied (2017) 6,136 95.8% 52,100 97.1% 92,690 97.4%

Housing Units Owner-Occupied 1,121 18.3% 25,105 48.2% 60,206 65.0%

Housing Units Renter-Occupied 5,015 81.7% 26,995 51.8% 32,484 35.0%

Housing Units Vacant (2017) 266 4.3% 1,532 2.9% 2,516 2.7%

DAYTIME DEMOGRAPHICS (2014)Total Businesses 851 5,300 8,374

Total Employees 6,688 59,779 87,899


EXCLUSIVELY LISTED BY:

XAVIER SANTANA | PRESIDENT(925) 226-2455

[email protected] # 01317296

CHRIS SANTANA | VICE PRESIDENT(925) 203-1106

[email protected] # 01868378

© 2016 Northgate Commercial Real Estate. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make guarantee, warranty or representation about it. It is submitted

subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, orwithdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may

not represent current or future performance of the property. You and your tax an legal advisors should conduct your own investigation of the property and transaction.

920 DALLAS DRIVE Denton, Texas

4643 Quail Lakes Dr. Suite 101 |Stockton, CA| 95207T (209) 477-4400 |F (209) 476-7344

www.NorthgateCRE.com | License # 01910787

NAI Robert Lynn4851 LBJ Freeway 10th FloorDallas, TX 75244 USALic. # 405391nairlretail.com

CO-LISTED BY:


INFORMATION ABOUT BROKERAGE SERVICES

Before working with a real estate broker, you should know the duties of abroker depend on whom the broker represents. If you are a prospectiveseller or landlord (owner) or a prospective buyer or tenant (buyer), youshould know that the broker who lists the property for sale or lease is theowner’s agent. A broker who acts as a subagent represents the owner incooperation with the listing broker. A broker who acts as a buyer’s agentrepresents the buyer. A broker may act as an intermediary between theparties if the parties consent in writing. A broker can assist you in locatinga property, preparing a contract or lease, or obtaining financing withoutrepresenting you. A broker is obligated by law to treat you honestly.

IF THE BROKER REPRESENTS THE OWNER:The broker becomes the owner’s agent by entering into an

agreement with the owner, usually through a written - listing agreement,or by agreeing to act as a subagent by accepting an offer of subagencyfrom the listing broker. A subagent may work in a different real estateoffice. A listing broker or subagent can assist the buyer but does notrepresent the buyer and must place the interests of the owner first. Thebuyer should not tell the owner’s agent anything the buyer would notwant the owner to know because an owner’s agent must disclose to theowner any material information known to the agent.

IF THE BROKER REPRESENTS THE BUYER:The broker becomes the buyer’s agent by entering into an agreement

to represent the buyer, usually through a written buyer representationagreement. A buyer’s agent can assist the owner but does not representthe owner and must place the interests of the buyer first. The ownershould not tell a buyer’s agent anything the owner would not want thebuyer to know because a buyer’s agent must disclose to the buyer anymaterial information known to the agent.

IF THE BROKER ACTS AS AN INTERMEDIARY:A broker may act as an intermediary between the parties if the broker

complies with The Texas Real Estate License Act. The broker must obtainthe written consent of each party to the transaction to act as an

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

intermediary. The written consent must state who will pay the brokerand, in conspicuous bold or underlined print, set forth the broker’sobligations as an intermediary. The broker is required to treat each partyhonestly and fairly and to comply with The Texas Real Estate License Act.A broker who acts as an intermediary in a transaction:

(1) shall treat all parties honestly;

(2) may not disclose that the owner will accept a price less that theasking price unless authorized in writing to do so by the owner;

(3) may not disclose that the buyer will pay a price greater than theprice submitted in a written offer unless authorized in writing to do so bythe buyer; and

(4) may not disclose any confidential information or any informationthat a party specifically instructs the broker in writing not to discloseunless authorized in writing to disclose the information or required to doso by The Texas Real Estate License Act or a court order or if theinformation materially relates to the condition of the property.

With the parties’ consent, a broker acting as an intermediary between theparties may appoint a person who is licensed under The Texas Real EstateLicense Act and associated with the broker to communicate with and carryout instructions of one party and another person who is licensed underthat Act and associated with the broker to communicate with and carryout instructions of the other party.

IF YOU CHOOSE TO HAVE A BROKER REPRESENT YOU:You should enter into a written agreement with the broker that

clearly establishes the broker’s obligations and your obligations. Theagreement should state how and by whom the broker will be paid. Youhave the right to choose the type of representation, if any, you wish toreceive. Your payment of a fee to a broker does not necessarily establishthat the broker represents you. If you have any questions regarding theduties and responsibilities of the broker, you should resolve thosequestions before proceeding.


nicole key retail leased investment · 2017-11-20 · batteries plus bulbs, shell gas, and more 920...

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