offering memorandum staples -...

Offering Memorandum

Staples Dallas, TX

CONFIDENTIALITY AND DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly 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 Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified 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 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 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.

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.

Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) 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 M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

NON-ENDORSEMENT NOTICE

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOURMARCUS & MILLICHAP AGENT FOR MORE DETAILS.

exclusively listedExclusively listed by: Investment Sales:

OFFICES NATIONWIDEwww.marcusmillichap.com

Philip LevyFirst Vice President InvestmentsFORT WORTH OFFICETel: (817) 932-6123Fax: (817) [email protected] License: TX 522087

Table of Contents

Staples

EXECUTIVE SUMMARYExecutive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Investment Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

PROPERTY DESCRIPTIONProperty Details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Regional Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Local Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Aerial Photo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

FINANCIAL ANALYSISFinancial Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Tenant Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

MARKET OVERVIEWDemographic Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

summaryE X E C U T I V E S U M M A R Y

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EXECUTIVE SUMMARY

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap

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Staples

ACT ID U0000000

LEASE SUMMARY Lease Type Double NetRoof and Structure Landlord ResponsibleLease Guarantor Corporate GuaranteeOriginal Lease Term 15 YearsRent Commencement Date 1/01/01Lease Expiration Date 12/31/20Remaining Lease Term 4.5 YearsOptions 3, 5-Year OptionsIncreases In Option Periods

OFFERING SUMMARY Offering Price $3,475,000Cap Rate 8.78%NOI $305,261Rentable Square Feet 23,942Year Built 2000Lot Size 1.9678 Acres

STAPLES9222 East R L Thornton Freeway Dallas, TX 75228

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EXECUTIVE SUMMARY


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Investment Overview

PHOTO

Staples

ACT ID U0000000

Investment Highlights

■■ 23,942-Square Foot Single-Tenant Building Shadow Anchored by Walmart Supercenter and Sam’s Club

■■ Double-Net Lease | Landlord Responsible for Roof and Structure

■■ Corporate Guaranty from a Publicly Traded Company (NASDAQ: SPLS)

■■ Investment Grade Tenant | BBB Rating from Standard & Poor’s

■■ Tenant Recently Executed a Five Year Renewal Option and Has Three, Five-Year Options Remaining with Rent Increases

■■ In Line with Dollar Tree, The Shoe Department and Rainbow

■■ Freeway Location with Excellent Visibility from I-30 and Loop 12 (Buckner Boulevard) | Traffic Counts are 209,850-VPD on I-30 and 46,755-VPD on South Buckner Boulevard | Tenant Has Top Pylon Sign Position

■■ Densely Populated Area with 347,300 Residents Within Five Miles

The subject property is a 23,942-square foot single-tenant building leased to Staples in Dallas, Texas. The double-net lease has a corporate guaranty from a publicly traded company (NASDAQ: SPLS) with a BBB rating from Standard & Poor’s. The tenant recently executed a five-year option for renewal and has three, five-year options remaining with rent increases scheduled at the beginning of each option period. Constructed in 2000, the building sits on 1.968 acres.

The subject property is located in a regional shopping center (Buckner Commons) off of Interstate 30 just inside Loop 12 (Buckner Boulevard) and has excellent freeway visibility and top pylon sign position. The area has extremely high traffic counts, with 209,850-vehicles per day on I-30 and 46,755-vehicles per day on South Buckner Boulevard. Shadow anchored by Walmart Supercenter and Sam’s Club, other national retailers in Buckner Commons include Dollar Tree, The Shoe Department, Bank of America, Foot Locker, Pizza Hut, GameStop, T Mobile, Cash Store, Wingstop, Taco Cabana, Chase Bank, Cato, Sprint and others. The densely populated area has 347,300 residents within a five mile radius of the property.

The area directly east of the subject property on the other side of Buckner Boulevard is comprised of industrial districts and business parks. The area is home to Coca Cola Refreshments, Georgia-Pacific, Ryder, Fastenal, Jostens, Grocery Direct Consolidated Transportation, Mrs. Baird’s Bakery and the Mesquite Union Pacific Intermodal Terminal, to name a few. White Rock Lake is approximately 5 miles northwest of the property and is one of the most heavily used parks in the Dallas park system.

descriptionP R O P E R T Y D E S C R I P T I O N

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PROPERT Y DESCRIPTION

6This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap

Property Details

Staples

ACT ID T0000000

THE OFFERING

Property StaplesProperty Address 9222 East R L Thornton Freeway

Dallas, TX 75228

SITE DESCRIPTION

Gross Leasable Area: 23,942 SFOwnership: Fee SimpleYear Built: 2000Lot Size: 1.9678 Acres



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Regional Map

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Local Map

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ACT ID T0000000



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Aerial Photo

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analysisF I N A N C I A L A N A L Y S I S


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FINANCIAL ANALYSIS

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Financial Overview

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TENANT SUMMARY Ownership PublicTenant Corporate StoreLease Guarantor Corporate GuaranteeLease Type Double NetRoof and Structure Landlord ResponsibleOriginal Lease Term 15 YearsLease Commencement Date 6/29/00Rent Commencement Date 1/01/01Lease Expiration Date 12/31/20Remaining Lease Term 4.5 YearsOptions 3, 5-Year OptionsIncreases In Option Periods

OFFERING SUMMARY Price $3,475,000Down Payment 100% / $3,475,000Rentable Square Feet 23,942Price/SF $145.14CAP Rate 8.78%Year Built 2000Lot Size 1.9678 AcresType of Ownership Fee Simple

Rent Increases Annual Rent Monthly Rent*Current - 12/31/20 $305,260.50 $25,438.38Option 2: 1/01/21 - 12/31/25 $329,202.50 $27,433.54Option 3: 1/01/26 - 12/31/30 $341,173.50 $28,431.13Option 4: 1/01/31 - 12/31/35 $353,144.50 $29,428.71

Base Rent ($12.75/SF) $305,261Net Operating Income $305,261Total Return 8.78% / $305,261

EXISTING FINANCING Loan Type Free and Clear

ANNUALIZED OPERATING DATA

*Tenant has exercised the first renewal option and has 3, 5-year optionsremaining.

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F INANCIAL ANALYSIS

Tenant Overview

Staples

ACT ID T0000000

Staples makes it easy to make more happen with more products and more ways to shop. Through its world-class retail, online and delivery capabilities, Staples lets customers shop however and whenever they want, whether it’s in store, online or on mobile devices. Staples offers more products than ever, in categories such as technology, facilities and breakroom, furniture, safety, and medical, as well as Copy & Print and Staples® EasyTechsm services. Headquartered outside of Boston, Staples operates throughout North and South America, Europe, Asia, Australia and New Zealand. More information about Staples (Nasdaq: SPLS) is available at staples.com®.

Property Name Staples

Property Type Net Leased Office Supply

Rentable Square Feet 23,942

Ownership Public

Tenant Corporate Store

Sales Volume $5.3 Billion

Credit Rating BBB

Rating Agency Standard & Poor’s

Board / Stock Symbol NASDAQ: SPLS

No. of Locations 2,000

Headquartered Framingham, MA

Rent Commencement Date 1/01/01

Lease Expiration Date 12/31/20

Term Remaining on Lease 4.5 Years

Lease Type Double Net

Roof and Structure Landlord Responsible

Lease Term 15 Years

Increases In Option Periods

Options to Renew 3, 5-Year Options

Options to Terminate No

Options to Purchase No

First Right of Refusal No

• Invented office superstore concept in 1986

• World-class retail, online and delivery capabilities

• Single-digit share of highly fragmented global market

• Operations in 25 countries

• 80% business customers, 20% consumers

• #4 eCommerce player behind Amazon, Apple, and Walmart

• More than 200,000,000 annual retail transactions worldwide

• Recycling more than 55 million ink and toner cartridges and 26 million pounds of electronic waste annually

overviewM A R K E T O V E R V I E W

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MARKET OVERVIEW


Demographic Summary

Staples

ACT ID T0000000

INCOME 1-MILE 3-MILES 5-MILES

$0 - $ 14,999 20.1% 15.3% 15.4%

$15,000 - $24,999 13.6% 14.6% 14.3%

$25,000 - $34,999 12.9% 14.2% 14.0%

$35,000 - $49,999 15.2% 15.8% 15.6%

$50,000 - $74,999 17.9% 17.6% 17.0%

$75,000 - $99,999 10.1% 9.6% 9.4%

$100,000 - $124,999 4.9% 5.5% 5.5%

$125,000 - $149,999 1.9% 2.5% 3.0%

$150,000 - $200,000 1.7% 2.1% 2.5%

$200,000 to $249,999 0.7% 1.1% 1.3%

$250,000 + 1.0% 1.7% 2.0%

2014 Median HH Income $37,880 $39,595 $40,277

2014 Per Capita Income $19,809 $20,796 $22,121

2014 Average HH Income $52,838 $59,005 $61,817

HOUSEHOLDS 1-MILE 3-MILES 5-MILES

2000 Households 5,587 41,397 117,109

2010 Households 5,207 41,286 116,886

2014 Households 5,473 43,707 123,977

2019 Households 5,495 44,528 125,847

2014 Average HH Size 2.64 2.83 2.80

2014 Daytime Population 4,891 27,251 86,278

2000 Owner Occupied Housing Units 39.99% 50.37% 50.55%

2000 Renter Occupied Housing Units 55.37% 44.04% 43.30%

2000 Vacant 4.65% 5.59% 6.16%



2014 Vacant 8.25% 6.32% 6.32%



2019 Vacant 8.81% 6.49% 6.35%

POPULATION 1-MILE 3-MILES 5-MILES

2000 Population 14,196 114,491 322,647

2010 Population 14,008 118,117 329,633

2014 Population 14,679 124,414 347,300

2019 Population 14,723 126,293 351,159

MARKET OVERVIEW

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Demographic data © 2015 by Experian/Applied Geographic Solutions.

Demographic Summary

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Race and Ethnicity The current year racial makeup of your selected area is as follows: 52.07% White, 21.88% Black, 0.04% Native American and 1.75% Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 46.89% of the current year population in your selected area. Compare this to the Entire US average of 17.13%.

Housing In 2000, there were 63,077 owner occupied housing units in your area and there were 54,031 renter occupied housing units in your area. The median rent at the time was $528.

Employment In 2014, there are 86,277 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 57.18% of employees are employed in white-collar occupations in this geography, and 42.81% are employed in blue-collar occupations. In 2014, unemployment in this area is 6.88%. In 2000, the average time traveled to work was 29.7 minutes.

PopulationIn 2014, the population in your selected geography is 347,299. The population has changed by 7.64% since 2000. It is estimated that the population in your area will be 351,158 five years from now, which represents a change of 1.11% from the current year. The current population is 49.20% male and 50.79% female. The median age of the population in your area is 32.2, compare this to the Entire US average which is 37.3. The population density in your area is 4,422.49 people per square mile.

Households There are currently 123,977 households in your selected geography. The number of households has changed by 5.86% since 2000. It is estimated that the number of households in your area will be 125,847 five years from now, which represents a change of 1.50% from the current year. The average household size in your area is 2.79 persons.

Income In 2014, the median household income for your selected geography is $40,277, compare this to the Entire US average which is currently $51,972. The median household income for your area has changed by 6.42% since 2000. It is estimated that the median household income in your area will be $45,682 five years from now, which represents a change of 13.41% from the current year.

The current year per capita income in your area is $22,121, compare this to the Entire US average, which is $28,599. The current year average household income in your area is $61,816, compare this to the Entire US average which is $74,533.

Geography: 5 Miles

exclusively listedExclusively listed by:

OFFICES NATIONWIDEwww.marcusmillichap.com

Investment Sales:

Philip LevyFirst Vice President InvestmentsTel: (817) 932-6123Fax: (817) [email protected]

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