offering memorandum - cityfeet · esc date price per year lease type option expense reimbursement...

P H I L I P L E V Y972.755.5225SENIOR MANAGING [email protected]

OFFERING MEMORANDUM

2

PROPERTY INFORMATION 3

LOCATION INFORMATION 8

FINANCIAL ANALYSIS 14

DEMOGRAPHICS 19

ContentsConfidentiality & Disclaimer

The information contained in the following Marketing Brochure is proprietary and strictlyconfidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichapand should not be made available to any other person or entity without the written consent ofMarcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverifiedinformation to prospective purchasers, and to establish only a preliminary level of interest in thesubject property. The information contained herein is not a substitute for a thorough duediligence investigation. Marcus & Millichap has not made any investigation, and makes nowarranty or representation, with respect to the income or expenses for the subject property, thefuture projected financial performance of the property, the size and square footage of theproperty and improvements, the presence or absence of contaminating substances, PCB's orasbestos, the compliance with State and Federal regulations, the physical condition of theimprovements thereon, or the financial condition or business prospects of any tenant, or anytenant’s plans or intentions to continue its occupancy of the subject property. The informationcontained 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 containedherein, nor has Marcus & Millichap conducted any investigation regarding these matters andmakes no warranty or representation whatsoever regarding the accuracy or completeness of theinformation provided. All potential buyers must take appropriate measures to verify all of theinformation set forth herein.

Non-Endorsement Notice

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant orlessee identified in this marketing package. The presence of any corporation’s logo or name is notintended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporationof Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commerciallisting of Marcus & Millichap, and is solely included for the purpose of providing tenant lesseeinformation about this listing to prospective customers.

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

Post Oak Shopping Center13912 Trinity Boulevard, Euless, TX 76040

TABLE OF CONTENTS

Section 1 PROPERTY INFORMATION

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OFFERING SUMMARY

Sale Price: $3,760,000

Cap Rate: 6.58%

Current NOI: $247,471

Pro Forma Cap Rate: 9.95%

Pro Forma NOI: $374,224

Lot Size: 2.33 Acres

Year Built: 1986

Building Size: 20,620

Price / SF: $182.35

Marcus & Millichap is pleased to offer the opportunity to acquire a value-add, neighborhood shopping center in the Dallas-FortWorth suburb of Euless, Texas.

PROPERTY OVERVIEW

DEMOGRAPHICS

1 MILE 3 MILES 5 MILES

Total Households 6,671 29,439 101,663

Total Population 13,294 65,272 234,654

Average HH Income $63,700 $68,114 $73,514


PROPERTY INFORMATION | EXECUTIVE SUMMARY

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Marcus & Millichap is pleased to offer the opportunity to acquire a value-add neighborhood shopping center in the

Dallas-Fort Worth suburb of Euless, Texas. Post Oak Shopping Center is a 20,620-square foot, multi-tenant building

that is currently 83 percent occupied, providing upside potential in leasing the vacant space and converting the

gross leases to triple-net. Tenants consist of a complementary mix of internet-resistant retailers including Valero,

Po Boys Pizza, Rob’s Sports Bar, Cubit Construction, Donuts Shop, and Pipe Xtreme. Valero has been in the center

more than 30 years. Constructed in 1986, the building is situated on 2.3-acres with ample paved parking.

PROPERTY OVERVIEW

Post Oak Shopping Center is located at the signalized, hard corner of Trinity Boulevard and Post Oak Boulevard

just west of State Highway 360. Traffic counts are approximately 24,400 vehicles per day on Trinity Boulevard.

Numerous national and regional tenants are in the neighboring area, including Family Dollar, Bru City, Days Inn,

7-Eleven, Jack in the Box, Wendy’s, Starbucks, Pizza Hut, Chick-fil-A, the CR Smith Museum, and many others. The

new American Airlines headquarters is currently under construction directly across Trinity Boulevard from the

property and will be a major traffic driver to the area. The development is situated on more than 300 acres and will

feature a five-building office complex totaling 1.8 million square feet. The center is anticipated to open in the

summer of 2019 and will service approximately 7,000 employees daily.

The city of Euless is in the heart of the Dallas-Fort Worth Metroplex and part of the Mid-Cities between Dallas and

Fort Worth. The subject property is located less than five miles from Dallas-Fort Worth International Airport. The

airport services approximately 67 million passengers per year and operates approximately 65,000 flights.

LOCATION OVERVIEW


PROPERTY INFORMATION | PROPERTY DESCRIPTION

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SALE HIGHLIGHTS

• 20,620-Square Foot, Multi-Tenant Neighborhood Retail Center

• Anchored by Valero, the World's Largest Independent Petroleum Refiner | a Fortune

50 Company that is Publicly Traded on the NYSE (VLO)

• Valero is a Long-Term Tenant that has Been in the Center more than 30 Years | Lease is

Guaranteed by Skipper Beverage Company LLC, a Wholly-Owned Subsidiary of Valero

• 83% Occupied | 71% of the Gross Leasable Area has Triple-Net Leases

• Upside Potential in Leasing Vacant Space and Converting Gross Leases | Pro Forma

Cap Rate is 9.95%

• Tenant Base is a Complementary Mix of Internet-Resistant Businesses

• Situated on a 2.33-Acre Lot with Ample Paved Parking

• Signalized, Hard Corner Location at Trinity Boulevard and Post Oak Boulevard Near

Highway 360

• Traffic Counts are Approximately 24,400 Vehicles per Day

• Directly South of the New American Airlines Corporate Headquarters | Opened in May

2019 | Servicing 7,000 Employees Daily

• Less than Five Miles from Dallas-Fort Worth International Airport

• Extremely Dense Population in the Surrounding Area | Approximately 234,650

Residents within Five Miles of the Property

• The Average Household Income within Five Miles is $73,500

• Located in the Mid-Cities of Hurst-Euless-Bedford (HEB) | 18 Minutes from the

Central Business District in Forth Worth and 23 Minutes from the Dallas Central

Business District


PROPERTY INFORMATION | COMPLETE HIGHLIGHTS

7

AMERICAN AIRLINES NEW HEADQUARTERS

In May 2019, American Airlines employees started moving into American Airlines new headquarters, the Robert L. Crandall Global Support Campus. The goal of the campus

is to create a united home for American's 130,000 employees, whether they live in North Texas or are visiting the region for training or meetings. The new campus is located

directly across from Post Oak Shopping Center on Trinity Boulevard.

QUICK FACTS

Built 2019

Size - Area 300+ Acres

Building Size 1.8 Million SF

Daily Employees 7,000+ Daily

On-Site Training Employees 5,000+

CAMPUS FACTS

• The 300-acre spread, will feature 90 acres of woodlands, 8.3 miles of trails and more than 100 bicycles

scattered throughout the premises so the roughly 12,000 workers who could be there on any given day can

either stroll or pedal their way between buildings.

• Employees began moving into the new buildings in May, and will be completely moved in by October.

• The new campus will feature four seven-story towers, connecting to several smaller buildings on the

property.

• The airline has worked with the city of Fort Worth, Texas Department of Transportation and North Central

Texas Council of Governments to ensure that traffic signals and other safety features on roads surrounding

the campus will be improved by the time the campus is fully open.


PROPERTY INFORMATION | AMERICAN AIRLINES HEADQUARTERS

Section 2 LOCATION INFORMATION

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Post Oak Shopping Center


LOCATION INFORMATION | REGIONAL MAP

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LOCATION INFORMATION | LOCATION MAPS

1 1


LOCATION INFORMATION | AERIAL MAPS

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1 3



Section 3 FINANCIAL ANALYSIS

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INVESTMENT OVERVIEW CURRENT PRO FORMA

Price $3,760,000 $3,760,000

Price per SF $182.35 $182.35

Cap Rate 6.58 % 9.95 %

Total Return (yr 1) $247,471 $374,224

OPERATING DATA CURRENT PRO FORMA

Gross Income $356,394 $483,147

Operating Expenses $108,923 $108,923

Net Operating Income $247,471 $374,224

FINANCING DATA CURRENT PRO FORMA

Down Payment $3,760,000 $3,760,000

Loan Type All Cash All Cash


FINANCIAL ANALYSIS | FINANCIAL SUMMARY

INCOME SUMMARY CURRENT PER SF PRO FORMA PER SF

Base Rent $331,624 $19.27 $331,624 $19.27

Vacant Space at Market Rents $0 $0.00 $42,600 $12.50

Expense Reimbursements $24,770 $1.20 $108,923 $5.28

Gross Income $356,394 $17.28 $483,147 $23.43

EXPENSE SUMMARY CURRENT PER SF PRO FORMA PER SF

Real Estate Taxes $74,956 $3.64 $74,956 $3.64

Insurance $7,336 $0.36 $7,336 $0.36

Utilities $4,795 $0.23 $4,795 $0.23

Repairs & Maintenance $10,310 $0.50 $10,310 $0.50

Telephone $826 $0.04 $826 $0.04

Management Fee $10,700 $0.52 $10,700 $0.52

Gross Expenses $108,923 $5.28 $108,923 $5.28

Net Operating Income $247,471 $12.00 $374,224 $18.15

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FINANCIAL ANALYSIS | INCOME & EXPENSES

TENANT

NAME

UNIT

SIZE (SF)

% OF

GLA

LEASE

START

LEASE

END

ANNUAL

RENT

ESC

DATE

PRICE

PER YEAR

LEASE

TYPE OPTION

EXPENSE

REIMBURSEMENT

Valero Corner Store 3,480 16.88 12/15/1986 11/30/2021 $169,524 $48.71 NNN (1) 5-Yr @ $56.02 $14,371.46

Vacant 1,968 9.54

Po Boys Pizza 1,200 5.82 2/01/2019 1/31/2024 $28,200

2/1/2022

$23.50

$25.50

Gross

Vacant 1,440 6.98

Rob's Sports Bar (1) 8,480 41.13 8/15/2004 9/30/2021 $92,500 $10.91 NNN (1) 3-Yr @ Mkt

Cubit Construction 1,792 8.69 8/01/2013 MTM $8,400 $4.69 NNN $7,398.58

Donuts Shop 1,000 4.85 8/01/2013 9/30/2020 $12,600 $12.60 NNN (1) 3-Yr @ Mkt $3,000.00

Pipe Xtreme 1,260 6.11 11/01/2013 2/28/2022 $20,400 $16.19 Gross (1) 3-Yr @ Mkt

Totals/Averages 20,620 $331,624 $16.08 $24,770.04

(1) Landlord has agreed to a reduced rent structure for Tenant through the end of their primary term, totaling $92,500 annually. Per the lease, base rent should be $87,000 plus triple-net reimbursements.

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FINANCIAL ANALYSIS | RENT ROLL

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Company: Valero Energy Corporation

Total Assets: $50.2 Billion

Number Of Employees: 10,000

Fortune 500 Rank: 31

Wholesale Locations 7,000+

Tenant Credit: International

Lease Dates: 12/15/1986 - 11/30/21

Website: https://www.valero.com

OVERVIEW

• Long-Term Tenant at the Subject Property for More than 30 Years

• Lease is Guaranteed by Skipper Beverage Company LLC, a Wholly-Owned Subsidiary of

Valero

TENANT HIGHLIGHTS

Valero Energy Corporation, through its subsidiaries (collectively, “Valero”), is an

international manufacturer and marketer of transportation fuels and petrochemical

products. Valero is a Fortune 50 company based in San Antonio, Texas, and it operates 15

petroleum refineries with a combined throughput capacity of approximately 3.1 million

barrels per day and 14 ethanol plants with a combined production capacity of 1.73 billion

gallons per year.

The petroleum refineries are located in the United States, Canada and the United Kingdom,

and the ethanol plants are located in the Mid-Continent region of the U.S. Valero also is a

joint venture partner in Diamond Green Diesel, which operates a renewable diesel plant in

Norco, Louisiana. Diamond Green Diesel is North America’s largest biomass-based diesel

plant. Valero sells its products in the wholesale rack or bulk markets in the U.S., Canada, the

U.K., Ireland and Latin America. Approximately 7,400 outlets carry Valero’s brand names.

ABOUT VALERO ENERGY CORPORATION


FINANCIAL ANALYSIS | TENANT PROFILES

Section 4 DEMOGRAPHICS

2 0

POPULATION 1 MILE 3 MILES 5 MILES

Total population 13,294 65,272 234,654

Median age 32.5 32.4 33.1

Median age (Male) 33.4 32.6 32.8

Median age (Female) 32.1 32.7 33.8

HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES

Total households 6,671 29,439 101,663

# of persons per HH 2.2 2.2 2.3

Average HH income $63,700 $68,114 $73,514

Average house value $213,195 $149,240 $175,190

RACE 1 MILE 3 MILES 5 MILES

Total Population - White 6,831 39,719 157,056

% White 51.4% 60.9% 66.9%

Total Population - Black 4,416 13,918 45,771

% Black 33.2% 21.3% 19.5%

Total Population - Asian 1,358 7,787 21,511

% Asian 10.2% 11.9% 9.2%

Total Population - Hawaiian 171 1,319 1,880

% Hawaiian 1.3% 2.0% 0.8%

Total Population - American Indian 110 515 2,031

% American Indian 0.8% 0.8% 0.9%

Total Population - Other 613 6,889 15,420

% Other 4.6% 10.6% 6.6%

* Demographic data derived from 2018 CoStar data


DEMOGRAPHICS | DEMOGRAPHICS MAP & REPORT

INFORMATION 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.

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.

Information available at www.trec.texas.gov Regulated by the Texas Real Estate Commission IABS 1-0

11-2-2015

Licensed Broker /Broker Firm Name or Primary Assumed Business Name License No. Email Phone

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

P H I L I P L E V YSenior Managing DirectorDallas Office

972.755.5225 Office817.380.1153 [email protected]: TX 0522087

5001 Spring Valley RoadDallas, TX 75244

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