THROCKMORTON STREET PORTFOLIO

Transcription

1 OFFERING MEMORANDUM THROCKMORTON STREET PORTFOLIO 2734 & THROCKMORTON ST. DALLAS, TX 75219

2 Exclusively Listed By Danny McQuaid Associate - Multifamily Direct Mobile Daniel.McQuaid@matthews.com License No David J. Harrington National Director - Multifamily Direct Mobile david.harrington@matthews.com License No

3 TABLE OF CONTENTS PROPERTY OVERVIEW The Opportunity Property Description Location Overview Dallas Overview Location Map Demographics FINANCIAL OVERVIEW Investment Summary Unit Mix Annualized Operating Data

4 PROPERTY OVERVIEW OPPORTUNITY The Throckmorton Street Apartments are situated in a superior location, between Highland Park in the North, Uptown/ Downtown in the South, and the Dallas North Tollway just steps away to the West - within the Oak Lawn neighborhood, a neighborhood known for its abundance of greenery and fusion of high-end luxuries. Throckmorton Street presents an opportunity to acquire three unique properties in one one of the most affluent areas of Dallas. This property is ideal for people looking to live in proximity to Uptown, Highland Park, and Downtown Dallas. Additionally, new ownership is offered an incredible opportunity to increase effective rental rates by 40%+. The location and outstanding demographics of this property also allows for strong redevelopment opportunities in the future. PROPERTY DESCRIPTION 2734, Throckmorton St consists of 58 Units in 3 separate apartment buildings, located in the most walkable pocket of Dallas prestigious Oak Lawn neighborhood. Year Built: 1968, 1972, & ,970 sqft Lot Size: 1.21 acres (Total of all three parcels) Controlled Access Balcony, Deck, and Patio* 4 THROCKMORTON STREET

5 DALLAS, TEXAS 5

6 LOCATION OVERVIEW LOCAL DESCRIPTION Nestled in between Highland Park, Uptown, Downtown, and the Dallas North Tollway, the location of this property is unparalleled - with vibrant shopping, dining, and entertainment within walking distance. Not only is Throckmorton Street located within the Oak Lawn neighborhood, a neighborhood known for its abundance of greenery and fusion of greenery and high end luxuries, but this property is positioned within the most job-rich region in North Texas. Downtown Dallas is home to 135,000 employees, 2,500 businesses, and three Fortune 500 companies, while Uptown Dallas features 22,000 employees, 4,100 businesses and two Fortune 500 companies. 6 THROCKMORTON STREET

7 #1 #2 Most Innovative Economy in the U.S. Fastest Growing Metro in the U.S. DALLAS OVERVIEW Offering both big-city excitement and quiet, suburban living, the Dallas-Fort Worth metro area offers an interesting mix of Texas pride and cosmopolitan offerings. The cowboy life still exists in Fort Worth, while Dallasites love the trendy local bars and numerous retail shops. And no matter which part of the metroplex they call home, sports fans rally together behind their professional sports teams. Those who live in Dallas and Fort Worth tend to be young professionals, while the surrounding suburbs are largely filled with young families who want both a close-knit community and easy access to the cities. People from both demographics are flooding the area, and the population continues to grow. New developments have drawn in both families looking for their dream home and millennials looking to launch their careers DALLAS, TEXAS 7

8 BUSINESS IN DALLAS Globally connected and centrally located, Dallas enjoys convenient accessibility to the rest of the country that has allowed the city to emerge as a center for corporate America. A business-friendly environment, the availability of educated workers, low taxes and a low cost of doing business add to the city s allure for companies looking to expand or relocate. Today, Dallas and its suburbs have one of the highest concentrations of corporate headquarters in the United States, 21 of which are Fortune 500 companies. Dallas is a city where big ideas meet big opportunity thanks to the collaborative and engaged entrepreneurial ecosystem. Steady and significant growth in the city s central core speaks to its highly-diversified economy and thriving job market that support several major industry clusters. The local economy continues to be heavily influenced by petroleum along with other historically successful industry niches including food manufacturing, media, telecommunications, transportation, IT services, logistics, instruments and real estate development. 8 THROCKMORTON STREET

9 Getting Around DALLAS/FORT WORTH INTERNATIONAL AIRPORT As the primary international airport serving the Dallas-Fort Worth area, Dallas/ Fort Worth International Airport (DFW) is the third busiest airport in the world and the busiest airport in Texas seeing over 65.5 million passengers annually. The airport is the largest hub for American Airlines, which is headquartered nearby. DFW is roughly located halfway between Dallas and Fort Worth, providing passengers service to 217 destinations. DALLAS LOVE FIELD Six miles northwest of downtown Dallas, Dallas Love Field is a city-owned commercial airport that is home to the corporate headquarters and a focus city for Southwest Airlines, the largest domestic airline in the United States. Dallas Love Field is also a focus city for Virgin America. The airport s main terminal underwent a $519 million modernization plan that replaced its existing terminal buildings with a single 20-gate concourse. DART Dallas Area Rapid Transit (DART) is Dallas transit agency that operates buses, light rail and a commuter rail. Serving Dallas and twelve of its suburbs, DART sees an average daily ridership of 200,000 riders. DART s bus system provides 27 local routes that serve downtown Dallas, 15 suburban routes that link suburban neighborhoods to transit centers and 20 crosstown routes that run through Dallas and its suburbs. TRINITY RAILWAY EXPRESS Established by an interlocal agreement between DART and the Fort Worth Transportation Authority, the Trinity Railway Express is a commuter rail line in the Dallas-Fort Worth metroplex. It is the fifteenth most-ridden commuter rail system in the country with an average weekday ridership of over 8,000 passengers per day. The TRE fleet is comprised of nine locomotives that offer rail service between downtown Dallas and DFW airport. DALLAS, TEXAS 9

10 LOCATION MAP 10 THROCKMORTON STREET

11 DEMOGRAPHICS POPULATION 1-MILE 3-MILE 5-MILE 2022 Projection 38, , , Estimate 35, , , Census 29, , , Census 27, , ,947 Growth % 7.74% 6.50% Growth % 15.52% 10.91% Growth % 4.28% -3.79% HOUSEHOLDS 2022 Projection 22,874 86, , Estimate 20,657 78, , Census 17,069 66, , Census 13,861 54, ,026 Growth Growth Growth Est. Average Household Size INCOME $ 0 - $14,999 2,012 8,980 20,624 $ 15,000 - $24,999 1,236 6,420 14,936 $ 25,000 - $34,999 1,512 5,789 13,395 $ 35,000 - $49,999 2,341 9,530 19,593 $ 50,000 - $74,999 3,896 12,999 24,035 $ 75,000 - $99,999 2,341 8,817 15,702 $100,000 - $124,999 1,845 6,767 11,513 $125,000 - $149,999 1,418 4,746 7,817 $150,000 - $199,999 1,512 5,026 8,985 $200,000 - $249, ,806 5,182 $250,000 - $499,999 1,179 4,448 8,873 $500, ,653 6, Average Household Income $106,238 $105,082 $103, Median Household Income $70,146 $65,988 $59,108 DALLAS, TEXAS 11

12 Location Throckmorton Street Whole Foods Market Kroger Eatzi s Market & Bakery Walgreens Centrum Starbucks CVS Katy Trail Robert E. Lee Park West Village Equinox Highland Park 12 THROCKMORTON STREET

13 Nearby Points of Interest Whole Foods The Centrum Eatzi s Equinox Walgreens Katy Trail West Village Starbucks Robert E. Lee Park - Turtle Creek DALLAS, TEXAS 13

14 OAK LAWN NEIGHBORHOOD Excellent opportunity to aggregate properties in Dallas prestigious Oak Lawn neighborhood, allowing for outstanding redevelopment potential in the near future or down the line. Legend Subject Properties Vacant Land Currently On Market 14 THROCKMORTON STREET

15 DALLAS, TEXAS 15

16 FINANCIAL OVERVIEW INVESTMENT SUMMARY Offering Price: $8,000,000 Number of Units: 58 Property Address: 2734 Throckmorton St, Throckmorton St Year Built: 1972 Dallas, TX Gross Sq. Ft.: 35,970 Price Per Unit: $137,931 Average S.F. Per Unit: 620 Price Per S.F.: $ Lot Size (Acres): 1.21 Density: 48 UNIT MIX Total Units Unit Mix Unit Mix % Current Avg Rent Current Monthly Rent Market Rent Market Monthly Rent 21 Studio 36% $775 $16,275 $895 $18, % $899 $30,580 $1,225 $41, % $1,240 $3,720 $1,750 $5,250 Scheduled Monthly Rent: $50,575 $65,695 Scheduled Yearly Rent: $606,900 $788, THROCKMORTON STREET

17 ANNUALIZED OPERATING DATA Current Market Scheduled Gross Income: $539,436 $788,340 Less Vacancy Reserve: $0 $39,417 Other Income (Actual Jun17 T12): $19,401 $19,401 RUBS Income (Actual Jun17 T12): $27,829 $27,829 Gross Operating Income: $586,666 $796,153 Expenses: $280,168 $420,904 Net Operating Income: $306,498 $375,249 PRO FORMA ANNUAL OPERATING EXPENSES Current Per Unit % of SGI *Taxes 2.719% x Sale Price $85,403 $1, % Off-Site Management 5.0% x GOI $31,189 $ % Insurance Actual Jun17 T12 $16,588 $ % Reserves $200 x Units $11,600 $ % Payroll Actual Jun17 T12 $39,254 $ % Repairs & Maintenance Actual Jun17 T12 $19,885 $ % Contract/Building Services Actual Jun17 T12 $8,070 $ % Utilities Actual Jun17 T12 $63,015 $1, % General Administration Actual Jun17 T12 $5,164 $ % Total Expenses $280,168 $4, % Current Per Unit % of SGI Non-controllable expenses: Taxes, Ins., Reserves: $113,591 $1, % Total Expense with out Taxes $194,765 $3, % DALLAS, TEXAS 17

18 18 THROCKMORTON STREET SUBJECT PROPERTY PHOTO

19 DALLAS, TEXAS 19

20 Information About Brokerage Services Texas 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 ᴑ that the buyer/tenant will pay a price greater than the price submiʃed in a wriʃen offer; and 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. 20 THROCKMORTON STREET

21 Kyle Matthews/Matthews Retail Group Inc (310) Licensed Broker /Broker Firm Name or Primary Assumed Business Name License No. Phone Kyle Matthews (310) Designated Broker of Firm License No. Phone Licensed Supervisor of Sales Agent/ Associate License No. Phone Sales Agent/Associate s Name License No. Phone Regulated by the Texas Real Estate Commission Buyer/Tenant/Seller/Landlord Initials Date InformaƟon available at IABS 1-0 DALLAS, TEXAS 21

22 THROCKMORTON STREET PORTFOLIO 2734 & THROCKMORTON ST. DALLAS, TX Exclusively Listed by Danny McQuaid Associate - Multifamily Direct Mobile Daniel.McQuaid@matthews.com License No (TX) David J. Harrington National Director - Multifamily Direct Mobile david.harrington@matthews.com License No (CA)