south polk nokomis - loopnet · airlines, neiman marcus, kimberly-clark, jcpenney, exxonmobil and...

DALLAS, TX | 1

™

South Polk&

Nokomis

O F F E R I N G M E M O R A N D U M

™

E x c l u s i v e l y L i s t e d B y

David J. Harrington National Director - Multifamily

Direct +1.310.295.1170Mobile [email protected] No. 01320460

Daniel McQuaid Associate - Multifamily


T a b l e o f C o n t e n t sPROPERTY OVERVIEWThe OpportunityProperty Description Parcel Map

AREA OVERVIEWDallasLocation Map

FINANCIALSInvestment SummaryUnit MixAnnualized Operating DataProforma Annual Operating Expenses

4

7

11


4 | 3288 S POLK STREET

P r o p e r t y O v e r v i e w

OPPORTUNITY

Matthews Real Estate Investment Services has been exclusively retained to offer an

opportunity for qualified investors to purchase the Chalmette, Polk Villa, and Nokomis

Apartments located in Dallas, TX. Ideally located in proximity to the joining of I-35E &

US-67, The Chalmette, Polk Villa, and Nokomis Apartments offer an investor an

incredible opportunity to purchase 165 Value Add multifamily units in Dallas, TX.

Current ownership has completed extensive property improvements, allowing for

new ownership to carry the momentum and increase the effective rental rate.

PROPERTY DESCRIPTION

• 165 Units – Value Add

• Updated Roof, Updated HVAC system, New Fences, New Laundry Machines,

New Insulation Throughout the Property and New Doors on Units

• 10 Total Buildings

• Walking Distance to Shopping and Dining

• Walking Distance to Barbara Jordan Elementary School and Genesis Childcare

• 96% Occupancy


DALLAS, TX | 5

Located in Dallas Fort Worth, the largest metropolitan area in the South and the fourth largest in the

U.S. The Dallas-Fort Worth Metroplex is the economic and cultural hub of Texas. Innovative companies

are investing in the region, recognizing it as a hub of creativity, ingenuity and high-tech innovation.

LOCATION HIGHLIGHTS


PARCEL MAP

DALLAS, TX | 7

Dallas is a city where big ideas meet big opportunity. The city revolves around a bustling downtown area that expands through an assortment of neighborhoods and commercial centers, supported by a network of freeways that exceeds almost any other city. It boasts the largest urban arts district in the nation; where you’d be more likely to come across a world class exhibit than a broken pair of chaps. Its past and present is rich in culture, an All-American city that was built on legends.

The central core of Dallas has experienced a steady and significant growth that speaks to its highly diversified economy. It has become a hub for real estate and business, establishing itself as one of the largest concentrations of corporate headquarters for publicly traded companies such as American

Airlines, Neiman Marcus, Kimberly-Clark, JCPenney, ExxonMobil and many others. In 2015, Forbes reported that Dallas is “the best place for business and careers” in Texas. It’s the perfect blend of big city living and rustic southern charm.

The Dallas economy is expected to grow over the next couple of decades making it the perfect time to not only invest in Dallas real estate, but also relocate. As the 9th largest city in the country, Dallas has something for everyone. It combines clashing images of the city skyline and cowboy vibes. Yet, the city of Dallas describes itself best with the motto: “Big Things Happen Here.”

AREA OVERVIEWA r e a O v e r v i e w

5-MILE DEMOGRAPHICS

2017 Est . Populat ion 318,288

Projected Populat ion Growth 2017 - 2022 6.31%

2017 Est . Households 102,442

Projected Household Growth 2017 - 2022 6.20%

2017 Est . Average Household Income $48,821


D a l l a s - F o r t W o r t h M S A

The Dallas-Fort Worth Metroplex is the largest metropolitan area in the South, and fourth largest in the United States. It is a center for sporting events, tourism and manufacturing. Dallas and its suburbs have one of the highest concentrations of corporate headquarters in the United States. Dallas is a center for corporate America. Because of its central location relative to the rest of the United States, Dallas is a popular convention site and site for many corporate headquarters and home to 21 Fortune 500 companies. Business management and operations is a major part of the economy. The Metroplex also contains the largest Information Technology industry base in the state. On the other end of the business spectrum, and on the other side of the Metroplex, the Texas farming and ranching industry is based in Fort Worth.

4thLargest City

7.1Million People

21Fortune 500 Companies

4Major Sports

Teams

DALLAS, TX | 9

Company Location

Exxon Mobil Irving

AT&T Dallas

Energy Transfer Equity Dallas

American Airlines Group Fort Worth

Tenet Healthcare Dallas

Southwest Airlines Dallas

Kimberly-Clark Irving

Fluor Corporation Irving

Holly Frontier Dallas

Texas Instruments Dallas

J.C. Penney Plano

Jacobs Engineering Dallas

D.R. Horton Fort Worth

GameStop Grapevine

Dean Foods Dallas

Alliance Data Systems Plano

Trinity Industries Dallas

Dr Pepper Snapple Group Plano

Commercial Metals Irving

Celanese Dallas

Energy Future Holdings Dallas

F o r t u n e 5 0 0 C o m p a n i e s

P r o f e s s i o n a l S p o r t s

The Dallas Cowboys are a professional American football team based in the Dallas–Fort Worth metroplex. The Cowboys compete in the National Football League (NFL) as a member club of the league’s National Football Conference (NFC) East division. The team is headquartered in Frisco, Texas, and plays its home games at AT&T Stadium in Arlington, Texas.

NFL - Dallas Cowboys

The Dallas Mavericks (often referred to as the Mavs) are an American professional basketball team based in Dallas. The Mavericks compete in the National Basketball Association (NBA) as a member club of the league’s Western Conference Southwest Division. The team plays its home games at the American Airlines Center.

NBA - Dallas Mavericks

The Texas Rangers are an American professional baseball team based in Arlington, Texas, located in the Dallas–Fort Worth metroplex. The Rangers franchise is currently a member of the West division of the American League (AL) in Major League Baseball (MLB). Since 1994, the Rangers have played in Globe Life Park in Arlington in Arlington, Texas.

MLB - Texas Rangers

The Dallas Stars are a professional ice hockey team based in Dallas, Texas. They are members of the Central Division of the Western Conference of the National Hockey League (NHL). The team was founded during the 1967 NHL expansion as the Minnesota North Stars, based in Bloomington, Minnesota.

NHL - Dallas Stars


L o c a t i o n M a p

S U B J E C T P R O P E R T Y

S U B J E C T P R O P E R T Y

DALLAS, TX | 1 1

INVESTMENT SUMMARY

Number of Units: 165Year Built: 1960-1973APN: VariousGross Sq. Ft.: 110,968Average S.F. Per Unit: 673Lot Size (Acres): 5.09Density: 32

UNIT MIX

Total Units Unit Mix Unit Mix % Current Avg RentCurrent Monthly

RentMarket Rent Market Monthly Rent

4 Efficiency 2% $493 $1,970 $550 $2,200102 1+1 62% $589 $60,120 $725 $73,95056 2+1 34% $660 $36,950 $825 $44,8002 3+2 1% $700 $1,400 $905 $1,8101 Office 1% $600 $600 $725 $725

Scheduled Monthly Rent: $101,040 $123,485Scheduled Yearly Rent: $1,212,480 $1,481,820

F i n a n c i a l O v e r v i e wLIST PRICE PRICE PER UNIT PRICE PER SF

$8,250,000 $50,000 $74.35

CURRENT MARKET

CAP RATE GRM CAP RATE GRM

6.75% 6.70 9.11% 5.50


ANNUALIZED OPERATING DATA

Current MarketScheduled Gross Income: $1,212,480 $1,481,820 22% Upside

Less Vacancy Reserve: $60,624 5.0% $74,091 5.0%

Other Income: $18,000 $18,000Gross Operating Income: $1,169,856 $1,425,729Expenses: $613,019 50.6% $674,382 45.51%*Net Operating Income: $556,837 $751,347Loan Payments: $339,439 $339,439Pre-Tax Cash Flow: $217,399 8.7% $411,908 16.48%**Plus Principal Reduction: $96,937 $96,937Total Return Before Taxes: $314,336 12.57% $508,846 20.35%*** As a percent of Scheduled Gross Income** As a percent of Down PaymentOther income is estimated at $12 per unit per month

PRO FORMA ANNUAL OPERATING EXPENSES

Current Per Unit % of SGIProperty Taxes 2.719% x Sale Price $99,876 $605 8.54%Off-Site Management 3.0% x GOI $35,096 $213 3.00%Insurance Actuals 2016 $45,000 $273 3.85%Payroll Annualized Nov 17 T-11 $79,134 $480 6.76%*Repairs & Maintenance $500 x Units $112,089 $679 9.58%Landscaping Annualized Nov 17 T-11 $3,153 $19 0.27%

Utilities / Trash Annualized Nov 17 T-11 $227,954 $1,382 19.49%General Administration Annualized Nov 17 T-11 $10,717 $65 0.92%Total Expenses $613,019 $3,715 52.40%

Current Per Unit % of SGINon-controllable expenses: Taxes, Ins., Reserves: $144,876 $878 11.9%Total Expense without Taxes $513,143 $3,110 42.32%

DALLAS, TX | 13

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of located at 1122 Nokomis Ave, 3276 Polk St, 3288 S Polk St, 3301 S Tyler St Dallas, TX (“Property”) . I t has been prepared by Matthews Retai l Advisors. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T


11-2-2015

Information About Brokerage ServicesTexas law requires all real estate license holders to give the following informaƟon about

brokerage services to prospecƟve buyers, tenants, sellers and landlords.

TYPES OF REAL ESTATE LICENSE HOLDERS: .• A BROKER is responsible for all brokerage acƟviƟes, 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 informaƟon about the property or transacƟon received by the broker; • Answer the client’s quesƟons and present any offer to or counter-offer from the client; and • Treat all parƟes to a real estate transacƟon 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 wriƩen lisƟng to sell or property management agreement. An owner's agent must perform the broker’s minimum duƟes above and must inform the owner of any material informaƟon about the property or transacƟon known by the agent, including informaƟon 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 wriƩen representaƟon agreement. A buyer's agent must perform the broker’s minimum duƟes above and must inform the buyer of any material informaƟon about the property or transacƟon known by the agent, including informaƟon disclosed to the agent by the seller or seller’s agent.

AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parƟes the broker must first obtain the wriƩen agreement of each party to the transacƟon. The wriƩen agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligaƟons as an intermediary. A broker who acts as an intermediary:

• Must treat all parƟes to the transacƟon imparƟally and fairly; • May, with the parƟes' wriƩen 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 instrucƟons of each party to the transacƟon. • Must not, unless specifically authorized in wriƟng to do so by the party, disclose:

ᴑ that the owner will accept a price less than the wriƩen asking price; ᴑ that the buyer/tenant will pay a price greater than the price submiƩed in a wriƩen offer; and ᴑ any confidenƟal informaƟon or any other informaƟon that a party specifically instructs the broker in wriƟng 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 transacƟon 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 duƟes and responsibiliƟes to you, and your obligaƟons under the representaƟon 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 noƟce is being provided for informaƟon purposes. It does not create an obligaƟon for you to use the broker’s services. Please acknowledge receipt of this noƟce below and retain a copy for your records.

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


Sales Agent/Associate’s Name License No. Email Phone

Regulated by the Texas Real Estate Commission

Buyer/Tenant/Seller/Landlord Initials

InformaƟon available at www.trec.texas.gov IABS 1-0

Date

Kyle Matthews/Matthews Retail Group Inc. 678067 [email protected] (310) 919-5757

Kyle Matthews 678067 [email protected] (310) 919-5757

DALLAS, TX | 15

11-2-2015

Information About Brokerage ServicesTexas law requires all real estate license holders to give the following informaƟon about

brokerage services to prospecƟve buyers, tenants, sellers and landlords.

TYPES OF REAL ESTATE LICENSE HOLDERS: .• A BROKER is responsible for all brokerage acƟviƟes, 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 informaƟon about the property or transacƟon received by the broker; • Answer the client’s quesƟons and present any offer to or counter-offer from the client; and • Treat all parƟes to a real estate transacƟon 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 wriƩen lisƟng to sell or property management agreement. An owner's agent must perform the broker’s minimum duƟes above and must inform the owner of any material informaƟon about the property or transacƟon known by the agent, including informaƟon 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 wriƩen representaƟon agreement. A buyer's agent must perform the broker’s minimum duƟes above and must inform the buyer of any material informaƟon about the property or transacƟon known by the agent, including informaƟon disclosed to the agent by the seller or seller’s agent.

AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parƟes the broker must first obtain the wriƩen agreement of each party to the transacƟon. The wriƩen agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligaƟons as an intermediary. A broker who acts as an intermediary:

• Must treat all parƟes to the transacƟon imparƟally and fairly; • May, with the parƟes' wriƩen 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 instrucƟons of each party to the transacƟon. • Must not, unless specifically authorized in wriƟng to do so by the party, disclose:

ᴑ that the owner will accept a price less than the wriƩen asking price; ᴑ that the buyer/tenant will pay a price greater than the price submiƩed in a wriƩen offer; and ᴑ any confidenƟal informaƟon or any other informaƟon that a party specifically instructs the broker in wriƟng 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 transacƟon 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 duƟes and responsibiliƟes to you, and your obligaƟons under the representaƟon 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 noƟce is being provided for informaƟon purposes. It does not create an obligaƟon for you to use the broker’s services. Please acknowledge receipt of this noƟce below and retain a copy for your records.

Licensed Broker /Broker Firm Name or Primary Assumed Business Name


Designated Broker of Firm License No. Email Phone

Licensed Supervisor of Sales Agent/Associate


Sales Agent/Associate’s Name License No. Email Phone

Regulated by the Texas Real Estate Commission

Buyer/Tenant/Seller/Landlord Initials

InformaƟon available at www.trec.texas.gov IABS 1-0

Date

Kyle Matthews/Matthews Retail Group Inc. 678067 [email protected] (310) 919-5757

Kyle Matthews 678067 [email protected] (310) 919-5757

Exclusively L isted By

David J. Harrington National Director - Multifamily


Daniel McQuaid Associate - Multifamily


™

South Polk&

Nokomis


south polk nokomis - loopnet · airlines, neiman marcus, kimberly-clark, jcpenney, exxonmobil and...

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