8730 King George Drive, Dallas, Texas OFFERING MEMORANDUM

Transcription

1 8730 King George Drive, Dallas, Texas OFFERING MEMORANDUM

2 Summary Y+A REAL ESTATE & ASSET MANAGEMENT is pleased to offer for sale to qualified investors a two-tenant 24,124 Gerber Collision & Glass located in Dallas, Texas. The Gerber Collision & Glass occupies 97% of the property, their recently cast lease has a base term of five (5) years and four (4) five (5) year renewal options. Leased to the only publicly traded collision center chain in North America, the site is strategically located in a dense infill underserved area near Dallas Love Field Airport with excellent access off I-35E. Gerber Collision & Glass is the largest segment of Boyd Group (TSX: BYD.UN) with over 500 locations in North America and annual revenue over $1.5 Billion. Zayo Group (NYSE: ZAYO) provides communications infrastructure services with annual revenue over $2.6 Billion, they have been a tenant for almost 20 years. Summary Offering Price $3,995,000 Cap Rate 5.65%

3 Summary. Two Publicly Traded Tenants Both tenants are publicly traded, Boyd Group on the Toronto Stock Exchange (TSX: BYD.UN) has annual revenue over $1.5 Billion and Zayo (NYSE: ZAYO) has annual revenue over $2.6 Billion. Industry Leader with Consistent Growth Boyd is one of the largest collision repair companies in North America with over 500 company operated collision locations across 22 U.S. states and five Canadian provinces. Sticky Tenants There are a limited number of similar spaces within a few miles that could serve Gerber s facility size and parking needs. Zayo has been a tenant for almost 20 years with a substantial investment in the site to service their server equipment and switches. Dense Infill Location With direct access off I-35E, over 250,000 people are within a 5-mile radius Near Dallas Love Field Airport Strategically located in an underserved area near Dallas Love Field Airport Limited Competition Only 5 national collision repair chain facilities are within a 5-mile radius Recently Renovated Facility The current owners spent a considerable amount of money renovating the facility in the last 18 months. Growing Market Share Boyd has grown the number of facilities they operate by almost 250% since Recession Resilient Industry Boyd receives 44% of their revenue through the largest insurance carriers with the largest contributing 14% of revenue. Top insurance companies that do business with Gerber include Allstate, Farmers, GEICO, USAA, and State Farm. Only Publicly Traded Auto Collision Company Boyd is the only public company in the $38 Billion auto collision repair industry in North America Recently Cast NN Lease There are approximately 5 years remaining on the Gerber lease, allowing a buyer to acquire a long-term net-leased asset. Low Rent Current rent is $9.00 PSF, which is much lower than other national collision center rents in the region. Significant Discount to Replacement Cost Price per square foot under $150 is a material discount to replacement cost. Highly Traveled and Ranked for Collisions Per Year Texas and Dallas area are known to have some of the worst drivers in the country. It shows clearly in the Texas Department of Transportation reporting around 35,000 accidents in the City of Dallas and 55,000 in Dallas County in Also, the Dallas-Fort Worth Metroplex experienced about 129,000 accidents in Zoning The only site in the area that permits this type of use

4 Lease Abstract. Gerber Collision & Glass Zayo 24,134 Building Size (SF) 24, Acres Land Area in Acres 1.72 Acres 23,383 Space SF % Tenant Pro Rata Share 3.11% 1971 / 2017 Year Built/Renovated 1972 / 2017 Fee Simple Ownership Interest Fee Simple Fee Simple February 23, 2018 Rent Commencement Date December 1, 1999 February 23, 2023 Lease Expiration Date December 31, Years Initial Lease Term 10 Years Roof, Structure, Foundation, HVAC Lease Type NN Roof, Structure, Foundation, HVAC 4 Five year options Lease Extensions 2 Five year options 270 Days Option Notice 270 Days 10 days after requested Estoppel 10 days after requested Tenant Real Estate Taxes Tenant Tenant Insurance Tenant Landlord Building repairs Landlord Landlord Roof Landlord Landlord HVAC Landlord Landlord Structure Landlord Landlord Parking Lot Landlord

5 Lease Abstract. Gerber Collision & Glass Year Rent Annualy PSF Monthy Increaes 1-5 $210,523 $9.00 $17, Option Periods 5-10 $221,049 $9.45 $18, % $232,101 $9.93 $19, % $243,706 $10.42 $20, % $255,892 $10.94 $21, % Zayo 1 $15,000 $19.97 $1, % 2 $15,300 $20.37 $1, % 3 $15,606 $20.78 $1, % 4 $15,918 $21.20 $1, % 5 $16,236 $21.62 $1, % 6 $16,561 $22.05 $1, % 7 $16,892 $22.49 $1, % 8 $17,230 $22.94 $1, % 9 $17,575 $23.40 $1, % 10 $17,926 $23.87 $1, %

6 Property Overview LOCATION: 8730 King George, Dallas, Texas PRICE: BUILDING SIZE: LAND SIZE: $3,995,000 ($161 per square foot) Approximately 24,837 square feet Approximately 74,994 square feet LAND / BLDG RATIO: 0.33 to 1 PARKING: 102 Spaces including 18 covered stalls ZONING: LI, a commercial zoning in Dallas which allows a wide variety of general office and industrial office uses.

7 Property Fact Sheet Appraisal Account #: FRONTAGE: 194 +/- on King George ARCHITECTURE TYPE: Contemporary with flat roof line, storefront glass walls, stucco exterior, and a tile wall feature at the front entrance. ROOF TYPE: The roof appears to be a flat TPO roof built over steel trusses. FOUNDATION: The foundation is assumed to be steel reinforced concrete STRUCTURAL: OTHER IMPROVEMENTS: The building is framed with engineered steel columns, joists and trusses. Concrete parking lot, an irrigation system, parking lot lights, and good quality landscaping. ACCESS: CONDITION: CONCLUSION: The building is accessed by glass personnel door at the front entrance and by metal or glass personnel doors at the side entrances. The building was built in 1971 and has been remodeled in The building has no readily apparent physical deficiencies. The office building is well-located for office/industrial use near the Love Field Airport near the CBD of Dallas. The building has an efficient floor plan and efficient site plan for office/industrial building use. The site has access to all public utilities, direct street access and level topography.

8 Area Map

9 Plat Map

10 Property Summary 8730 King George is a multi-tenant commercial office/industrial building located in highly desirable Brookhollow Submarket. This one (1) story gardenstyle building was renovated as recently as 2017 and is ideally suited for a discerning investor. This property built in 1971 boasts new cosmetic upgrades coupled with publicly traded tenants, in an escalating rental market make it well positioned for future appreciation. Brookhollow submarket is an area with limited supply and limited new development. There is a central atrium inviting great natural light. There is excellent exposure for signage on well-trafficked King George, which is a quiet setting just a few blocks away from the hustle and bustle of Uptown, the Design District, Love Field Airport and Downtown Dallas some of the most popular markets, restaurants, shops, nurseries, art galleries, and bars are within a short drive. CBD Subject