nicole key single-tenant absolute net lease investment · corporation, nch corporation, itw...
TRANSCRIPT
Nicole Key
OFFERING MEMORANDUMOFFERING MEMORANDUM
Single-tenant Absolute Net Lease Investment825 North Belt Line Road· Irving, Texas
CONFIDENTIALITY & DISCLOSURE AGREEMENT
Sacramento, California Reno, Nevada
825 N. Belt Line Rd
Irving, Texas
Northgate Commercial Real Estate (“Broker”) has been authorized by the Seller of the Property (“Seller”) to prepare and distribute theenclosed information for the purpose of soliciting offers to purchase from interested parties. Additional information in the possession of theSeller including but not limited to financial, tenant, title, and building can be made available upon request following the mutual execution ofletter of intent (LOI) and/or Purchase and Sale Agreement (PSA). All prospective Buyers may at the request of Seller, be required to submitfinancials and references to demonstrate Purchasers ability to close on the purchase of the property. The eventual Purchaser shall be selectedon the Sellers assessment of the price, terms, and the ability to close the transaction and such conditions as set for in the contract. Seller,reserves the right to simultaneously negotiate with multiple Purchasers at Seller’s sole discretion. Prospective purchasers and their agents maynot enter the property or disturb the tenant without Brokers consent. All property tours shall be conducted by appointment only and mustbe coordinated by Broker. All the information contained in this offering memorandum has been obtained by sources deemed reliable but arenot guaranteed. Prospective Purchasers shall bear the responsibility of conducting their own investigations on the property and review of thedue diligence materials as provided by the Seller.
OFFERING MEMORANDUM 2
TABLE OF CONTENTS825 N. Belt Line Rd
Irving, Texas
OFFERING MEMORANDUM 3
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 $1,721,000
PRICE / SQUARE FOOT $168.07
CAP RATE 7.50%
NOI $129,000
OCCUPANCY 100%
GLA ± 10,213 Sq Ft
LOT SIZE ± 0.71
ASSET HIGHLIGHTS
• Single-tenant absolute net lease investment
• High traffic location in a Dallas Suburb
• Area Co-Tenants include Walgreens, DD’s Discount, Save-A-Lot,
AutoZone, 7 Eleven, Pizza Hut, Sonic Drive-In, and more
825 N. Belt Line Rd
Irving, Texas
SUB TENANTS
• TitleMax
OFFERING MEMORANDUM 4
Be
lt Lin
e R
oa
d
Conflans Road
LEASING ABSTRACT825 N. Belt Line Rd
Irving, Texas
OFFERING MEMORANDUM 5
LEASE COMMENCEMENT: Close of Escrow
TERMS: 10 years
OPTIONS: 4 Options – 5 years each
RENT COMMENCEMENT: Close of Escrow
RENTAL INCREASES: 8% Every 5 years (base & option terms)
LEASE EXPIRATION: 10 years following Lease Commencement
DEPOSIT: None
LEASE TYPE: NNN
LANDLORD RESPONSIBILITES: None
TENANT RESPONSIBILITIES: Taxes, Insurance, and property repairs/maintenance
PROPERTY OVERVIEW825 N. Belt Line Rd
Irving, Texas
OFFERING MEMORANDUM 6
TENANT PROFILE TENANT PROFILE
OFFERING MEMORANDUM 7
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
OFFERING MEMORANDUM 8
825 N. Belt Line Rd
Irving, Texas
PROPERTY SUMMARY
LOCATION:825 NORTH BELT LINE ROADIrving, Texas 75061
APN: 32-02466-00A-002-00-00
GLA: ± 10,213 Sq Ft
LOT SIZE: ± 0.71
YEAR BUILT: 1982
ZONING: C-N- Neighborhood Commercial
TRAFFIC COUNTS:
Belt Line Rd @ Site ± 35,000 ADT
Reno, Nevada
825 N. Belt Line Rd
Irving, TexasBelt Line Rd ±
35,000 ADT
OFFERING MEMORANDUM 9
MARKET INFORMATION 825 N. Belt Line Rd
Irving, Texas
OFFERING MEMORANDUM 10
MARKET PROFILE825 N. Belt Line Rd
Irving, Texas
Irving’s Top Employers
Company / Organization Employees
Citigroup, Inc. 5,700
Verizon 3,260
Irving Mall 2,100
Aegis Communications 2,000
Allstate Insurance 2,000
YRC Worldwide 1,941
Nokia 1,700
NEC Corporation of America 1,515
Microsoft 1,351
Neiman Marcus Direct 1,339
Irving is located between Dallas and Fort Worth in the heart of the Metroplex. Irving includes the Las Colinas community, one of the first master-planned developments in the United States and once the largest mixed-use development in the Southwest with a land area of more than 12,000 acres
• More than 217,000 people live in Irving, which boasts beautiful country clubs, golf courses, and highly acclaimed public, private, and charter schools
• Housing options range from urban lofts to executive neighborhoods
• The city is easily accessible with major highways run through the city and the Dallas Area Rapid Transit and Trinity Rail Express lines service Irving
• The fourth largest airport in the United States - the Dallas / Fort Worth International Airport - also is located in Irving and serves as the region’s global gateway
• Several large businesses have headquarters in Irving, including Chuck E. Cheese's, Commercial Metals, ExxonMobil, Gruma, H.D. Vest, Kimberly-Clark, La Quinta Inns and Suites, Michaels Stores, Southern Star Concrete, In. Stellar, a global contact center provider, Zale Corporation, Fluor Corporation, NCH Corporation, ITW Polymers Sealants North America, Celanese Corporation, a leading producer of specialty chemicals, and LXI Enterprise Storage
OFFERING MEMORANDUM 11
2
MARKET AERIAL
825 N. Belt Line Rd
Irving, Texas
North Belt Line Road
±37,000
ADT
Conflans Road ± 5,000 ADT
OFFERING MEMORANDUM 12
2
REGIONAL AERIAL
825 N. Belt Line Rd
Irving, Texas
OFFERING MEMORANDUM 13
DEMOGRAPHICS
Irving, Texas
10 mi radius
5 mi radius
1 mi radius
OFFERING MEMORANDUM 14
DEMOGRAPHICS
POPULATION 1 mile 5 miles 10 miles
2015 Estimated Population 21,130 243,614 938,918
2020 Projected Population 23,055 266,882 1,024,693
2010 Census Population 19,032 218,123 846,042
Projected Annual Growth 2015 to 2020 1,925 1.8% 23,268 1.9% 85,775 1.8%Historical Annual Growth 2000 to 2015 2,098 1.8% 25,491 1.9% 92,877 1.8%HOUSEHOLDS
2015 Estimated Households 7,555 92,034 344,730
2020 Projected Households 8,042 98,768 369,196
2010 Census Households 6,882 82,244 308,978
Projected Annual Growth 2015 to 2020 487 1.3% 6,734 1.5% 24,466 1.4%Historical Annual Growth 2000 to 2015 544 0.5% 12,497 1.0% 51,076 1.1%AVERAGE HOUSEHOLD INCOME
Estimated Average Household Income (2015) $56,753 $63,270 $70,426
Projected Average Household Income (2020) $65,334 $73,077 $82,116
Census Average Household Income (2010) $48,804 $57,151 $62,295
Projected Annual Change (2015-2020) $8,581 3.0% $9,807 3.1% $11,690 3.3%Historical Annual Change (2000-2015) $9,803 1.3% $9,191 1.1% $13,439 1.5%MEDIAN HOUSEHOLD INCOME
Estimated Median Household Income (2015) $47,780 $52,869 $58,220
Projected Median Household Income (2020) $52,541 $57,953 $64,379
Census Median Household Income (2010) $37,583 $46,621 $51,664
Projected Annual Change (2015-2020) $4,761 2.0% $5,084 1.9% $6,159 2.1%Historical Annual Change (2000-2015) $8,031 1.3% $8,638 1.2% $11,102 1.5%
825 N. Belt Line Rd
Irving, Texas
OFFERING MEMORANDUM 15
RACE AND ETHNICITY 1 mile 5 miles 10 milesTotal Population (2015) 21,130 243,614 938,918
White (2015) 11,742 55.6% 130,652 53.6% 531,315 56.6%Black or African American (2015) 2,606 12.3% 34,405 14.1% 126,549 13.5%American Indian or Alaska Native (2015) 149 0.7% 2,114 0.9% 7,097 0.8%
Asian (2015) 981 4.6% 23,768 9.8% 76,978 8.2%
Hawaiian or Pacific Islander (2015) 11 0.1% 419 0.2% 1,956 0.2%Other Race (2015) 4,923 23.3% 43,626 17.9% 163,836 17.4%Two or More Races (2015) 718 3.4% 8,630 3.5% 31,188 3.3%EDUCATIONAL ATTAINMENT (2014)Adult Population Age 25 Years or Over 13,035 153,723 588,902
Elementary (Grade Level 0 to 8) 1,607 12.3% 17,677 11.5% 73,442 12.5%Some High School (Grade Level 9 to 11) 1,731 13.3% 15,855 10.3% 62,432 10.6%High School Graduate 3,753 28.8% 37,945 24.7% 137,930 23.4%Some College 2,679 20.6% 31,663 20.6% 116,100 19.7%Associate Degree Only 1,004 7.7% 10,171 6.6% 35,165 6.0%Bachelor Degree Only 1,645 12.6% 27,046 17.6% 107,507 18.3%Graduate Degree 617 4.7% 13,366 8.7% 56,326 9.6%Any College (Some College or Higher) 5,945 45.6% 82,246 53.5% 315,099 53.5%College Degree + (Bachelor Degree or Higher) 2,262 17.4% 40,412 26.3% 163,834 27.8%HOUSING Total Housing Units (2015) 7,806 95,648 356,594
Total Housing Units (2010) 7,599 91,363 340,261
Historical Annual Growth (2010-2015) 207 0.5% 4,285 0.8% 16,333 0.8%Housing Units Occupied (2015) 7,555 96.8% 92,034 96.2% 344,730 96.7%Housing Units Owner-Occupied 2,988 39.5% 34,015 37.0% 151,288 43.9%Housing Units Renter-Occupied 4,567 60.5% 58,019 63.0% 193,442 56.1%Housing Units Vacant (2015) 251 3.3% 3,614 3.9% 11,864 3.4%DAYTIME DEMOGRAPHICS (2014)Total Businesses 677 9,515 42,218
Total Employees 5,846 156,726 614,869
OFFERING MEMORANDUM 16
EXCLUSIVELY LISTED BY:
XAVIER SANTANA | PRESIDENT(925) 226-2455
[email protected] # 01317296
CHRIS SANTANA | VICE PRESIDENT(925) 203-1106
[email protected] # 01868378
NICOLE KEY | VICE PRESIDENT (408) 498-4561
[email protected] # 01973380
© 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, or withdrawal 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.
825 N. BELT LINE ROADIrving, 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:
OFFERING MEMORANDUM 17
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.
OFFERING MEMORANDUM 18