NORWOOD PLAZA 1848 NORWOOD PLAZA HURST, TX 76054 David Cook, SIOR, SEC Managing Director 972.387.5600 david.cook@svn.com Steve Fithian, CCIM, CPM, SEC Managing Director 817.288.5524 steve.fithian@svn.com SVN DAVID COOK CO, LLC 14902 PRESTON ROAD, SUITE 404-724, DALLAS, TX 75254 OFFERING MEMORANDUM
PROPERTY INFORMATION 3 Property Summary Property Description LOCATION INFORMATION 6 Regional Map Location Maps Aerial Map FINANCIAL ANALYSIS 10 Financial Summary Income & Expenses Rent Roll RENT COMPARABLES 14 Rent Comps Rent Comps Summary SALE COMPARABLES 19 Sale Comps Sale Comps Summary DEMOGRAPHICS 23 Demographics Report Demographics Map ADVISOR BIOS 26 Advisor Bio & Contact Advisor Bio & Contact Back Page NORWOOD PLAZA 1848 NORWOOD PLAZA, HURST, TX 76054 OFFERING MEMORANDUM
PROPERTY INFORMATION 1848 Norwood Plaza Hurst, TX 76054 NORWOOD PLAZA 1848 NORWOOD PLAZA HURST, TX 76054 SVN David Cook Co, LLC Page 3
Property Summary OFFERING SUMMARY Sale Price: $995,000 Cap Rate: 3.21% NOI: $31,935 Lot Size: 1.1 Acres Year Built: 1988 Building Size: 17,728 SF Price / SF: $56.13 PROPERTY OVERVIEW This building has a definite pride of ownership value. Its attractive design includes a terra cotta colored brick exterior with bronze tint glass windows. Its interior design allows for efficient space planning that maximizes the corner spaces for executive offices. Each tenants space has individual HVAC which provides individual comfort and cost control. This office building also offers a unique opportunity for an investor or user/investor. Eight tenants with staggered lease terms and rental rates as low as 35% below market allows a new owner the opportunity to significantly increase rents or a buyer could occupy the vacant space and over time expand into additional space as needed. PROPERTY HIGHLIGHTS Great Location Quick Access to 183, 121 & DFW Airport Perfect for User/Investor Attractive Design Below Market Rents Priced Well Below Replacement NORWOOD PLAZA 1848 NORWOOD PLAZA HURST, TX 76054 SVN David Cook Co, LLC Page 4
Property Description PROPERTY OVERVIEW This building has a definite pride of ownership value. Its attractive design includes a terra cotta colored brick exterior with bronze tint glass windows. Its interior design allows for efficient space planning that maximizes the corner spaces for executive offices. Each tenants space has individual HVAC which provides individual comfort and cost control. This office building also offers a unique opportunity for an investor or user/investor. Eight tenants with staggered lease terms and rental rates as low as 35% below market allows a new owner the opportunity to significantly increase rents or a buyer could occupy the vacant space and over time expand into additional space as needed. LOCATION OVERVIEW This property is conveniently located near the intersection of Norwood Drive and Interstate 121 with excellent access to Hwy 183, 121 and Loop 820. Down town Dallas, Las Colinas, DFW International Air Port and down town Fort Worth are all with in a short drive. INVESTOR HIGHLIGHTS * Great Upside For Investor or User * Below Market Rents Due to Hwy Construction * Expanded Hwy Enables Quick Metro Access * Eight Tenants With Staggered Lease Terms * 2,500 SF Available for Owner Occupant * Elevator For Easy Second Floor Access. NORWOOD PLAZA 1848 NORWOOD PLAZA HURST, TX 76054 SVN David Cook Co, LLC Page 5
LOCATION INFORMATION 1848 Norwood Plaza Hurst, TX 76054 NORWOOD PLAZA 1848 NORWOOD PLAZA HURST, TX 76054 SVN David Cook Co, LLC Page 6
Regional Map Norwood Plaza NORWOOD PLAZA 1848 NORWOOD PLAZA HURST, TX 76054 SVN David Cook Co, LLC Page 7
Location Maps NORWOOD PLAZA 1848 NORWOOD PLAZA HURST, TX 76054 SVN David Cook Co, LLC Page 8
Aerial Map Norwood Plaza NORWOOD PLAZA 1848 NORWOOD PLAZA HURST, TX 76054 SVN David Cook Co, LLC Page 9
FINANCIAL ANALYSIS 1848 Norwood Plaza Hurst, TX 76054 NORWOOD PLAZA 1848 NORWOOD PLAZA HURST, TX 76054 SVN David Cook Co, LLC Page 10
Financial Summary INVESTMENT OVERVIEW NORWOOD PLAZA Price $995,000 Price per SF $56.13 CAP Rate 3.2% NOI Before Debt Service $31,935 OPERATING DATA NORWOOD PLAZA Gross Scheduled Income $165,635 Expense Reimbursements $6,966 Total Scheduled Income $172,601 Actual Vacancy Cost $29,940 Gross Income $142,660 Operating Expenses $110,725 Net Operating Income $31,935 Proposed Debt Service $49,775 Pre-Tax Cash Flow $31,935 FINANCING DATA NORWOOD PLAZA Down Payment $995,000 NORWOOD PLAZA 1848 NORWOOD PLAZA HURST, TX 76054 SVN David Cook Co, LLC Page 11
Income & Expenses INCOME SUMMARY NORWOOD PLAZA PER SF Gross Scheduled Income $165,635 $9.34 Expense Reimbursements $6,966 $0.39 Gross Income $172,601 $9.74 EXPENSE SUMMARY NORWOOD PLAZA PER SF Electricity $25,519 $1.44 Heating and A/C $4,138 $0.23 Plumbing $1,625 $0.09 Repairs $2,121 $0.12 Pest Control $984 $0.06 Water & Sewer $2,088 $0.12 Trash Removal $1,429 $0.08 Landscaping $4,934 $0.28 Lighting $3,514 $0.20 Security $277 $0.02 Janitorial $27,679 $1.56 Elevator Maint. $2,996 $0.17 Management Fee $3,565 $0.20 Taxes (2016) $20,732 $1.17 Insurance $7,107 $0.40 Gross Expenses $110,725 $6.25 Net Operating Income $31,935 $1.80 NORWOOD PLAZA 1848 NORWOOD PLAZA HURST, TX 76054 SVN David Cook Co, LLC Page 12
Rent Roll TENANT NAME UNIT NUMBER UNIT SIZE (SF) LEASE START LEASE END ANNUAL RENT % OF BUILDING PRICE PER SF/YR New Millenium Concept 100 2,230 2/1/2013 7/7/2020 $17,840 12.58 $8.00 New Millenium Concept 101 1,297 4/1/2017 3/31/2020 $15,660 7.32 $12.07 Sergio L. San Pedro/ Air 109 780 12/1/2016 11/30/2021 $6,624 4.4 $8.49 Gumm Psychological Services 112 2,198 5/1/2013 3/31/2018 $18,683 12.4 $8.50 VACANT 114 2,495 $29,940 14.07 $12.00 Michael S. Handler 205 1,946 10/15/2013 9/30/2018 $14,790 10.98 $7.60 Richard Ryan Sellers 205B 850 9/1/2017 8/31/2022 $10,200 4.79 $12.00 Morris & Hadley, Inc. 212 1,277 1/1/2015 12/31/2017 $13,536 7.2 $10.60 The New Villa Group 213 1,596 8/28/2017 10/31/2022 $12,369 9.0 $7.75 C R Parr & Associates 214 3,058 12/1/2014 1/30/2020 $25,993 17.25 $8.50 Totals/Averages 17,727 $165,635 $9.34 NORWOOD PLAZA 1848 NORWOOD PLAZA HURST, TX 76054 SVN David Cook Co, LLC Page 13
RENT COMPARABLES 1848 Norwood Plaza Hurst, TX 76054 NORWOOD PLAZA 1848 NORWOOD PLAZA HURST, TX 76054 SVN David Cook Co, LLC Page 14
Rent Comps SUBJECT PROPERTY 1848 Norwood Plaza, Hurst, TX 76054 Lease Rate: $9.34 SF Lot Size: 1.1 Acres No. Units: 10 Space Size: 0 SF Year Built: 1988 1 CHIMNEY CREEK PROFESSIONAL PARK 1101 Bedford Rd Bedford, TX 76022 1 Lease Rate: $13.39 SF Lease Type: MG Space Size: 829 SF Year Built: 1982 Bldg Size: 13,962 SF Lot Size: Occupancy: 94.1% 2 1404 BROWN TRL Bedford, TX 76022 2 Lease Rate: $12.04 SF Lease Type: Full Service Space Size: 1,395 SF Year Built: 1974 Bldg Size: 7,560 SF Lot Size: Lease Term: 12 months Occupancy: 81.6% NORWOOD PLAZA 1848 NORWOOD PLAZA HURST, TX 76054 SVN David Cook Co, LLC Page 15
Rent Comps 3 BROWN TRAIL TOWER 2921 Brown Trl Bedford, TX 76021 3 Lease Rate: $12.00 SF Lease Type: Full Service Space Size: 987 SF Year Built: 1982 Bldg Size: 19,656 SF Lot Size: Occupancy: 87.1% 4 3001 BROWN TRL Bedford, TX 76021 4 Lease Rate: $12.00 SF Lease Type: NNN Space Size: 5,791 SF Year Built: 1984 Bldg Size: 9,957 SF Lot Size: Lease Term: 36 months Occupancy: 41.8% 5 1850 CENTRAL DRIVE Bedford, TX 76021 5 Lease Rate: $14.00 SF Lease Type: NNN Space Size: 1,937 SF Year Built: 1979 Bldg Size: 7,748 SF Lot Size: Occupancy: 0% NORWOOD PLAZA 1848 NORWOOD PLAZA HURST, TX 76054 SVN David Cook Co, LLC Page 16
Rent Comps 6 1908 CENTRAL DR Bedford, TX 76021 Lease Rate: $13.00 SF Lease Type: MG Space Size: 1,000 SF Bldg Size: 12,000 SF Lot Size: Occupancy: 91.7% 6 NORWOOD PLAZA 1848 NORWOOD PLAZA HURST, TX 76054 SVN David Cook Co, LLC Page 17
Rent Comps Summary SUBJECT PROPERTY PRICE/SF/YR AVAILABLE SF BLDG SF OCCUPANCY % Norwood Plaza 1848 Norwood Plaza Hurst, TX 76054 N/A 0 SF 17,728 SF 86.0% RENT COMPS PRICE/SF/YR AVAILABLE SF BLDG SF OCCUPANCY % 1 2 3 4 5 6 Chimney Creek Professional Park 1101 Bedford Rd Bedford, TX 76022 1404 Brown Trl Bedford, TX 76022 Brown Trail Tower 2921 Brown Trl Bedford, TX 76021 3001 Brown Trl Bedford, TX 76021 1850 Central Drive Bedford, TX 76021 1908 Central Dr Bedford, TX 76021 $13.39 829 SF 13,962 SF 94.1% $12.04 1,395 SF 7,560 SF 81.6% $12.00 987 SF 19,656 SF 87.1% $12.00 5,791 SF 9,957 SF 41.8% $14.00 1,937 SF 7,748 SF 0% $13.00 1,000 SF 12,000 SF 91.7% PRICE/SF/YR AVAILABLE SF BLDG SF OCCUPANCY % Totals/Averages $12.74 1,990 SF 11,814 SF 79.26% NORWOOD PLAZA 1848 NORWOOD PLAZA HURST, TX 76054 SVN David Cook Co, LLC Page 18
SALE COMPARABLES 1848 Norwood Plaza Hurst, TX 76054 NORWOOD PLAZA 1848 NORWOOD PLAZA HURST, TX 76054 SVN David Cook Co, LLC Page 19
Sale Comps SUBJECT PROPERTY 1848 Norwood Plaza, Hurst, TX 76054 Sale Price: $995,000 Lot Size: 1.1 Acres Year Built: 1988 Building SF: 17,728 SF Price PSF: $56.13 Cap: 3.21% NOI: $31,935 1 ONE CARRIER PLACE 625 N Carrier Pky Grand Prairie, TX 75050 Sale Price: $492,275 Lot Size: Year Built: 1983 Building SF: 8,722 SF Price PSF: $56.44 Closed: 06/03/2016 Occupancy: 65.3% 1 2 2321 S BELT LINE RD Grand Prairie, TX 75051 Sale Price: $1,250,000 Lot Size: Year Built: 1985 Building SF: 17,643 SF Price PSF: $70.85 Closed: 04/06/2017 Occupancy: 100% CoStar did not have the confirmed sales price; however they did disclose a new loan of $1,000,000. Assuming an 80% loan to value, the sales price was probably around $1,250,000. 2 NORWOOD PLAZA 1848 NORWOOD PLAZA HURST, TX 76054 SVN David Cook Co, LLC Page 20
Sale Comps 3 CORPORATE COURT OFFICE CENTER 1610 Corporate Ct Irving, TX 75038 Sale Price: $1,250,000 Lot Size: Year Built: 1982 Building SF: 13,026 SF Price PSF: $95.96 Closed: 02/23/2017 Occupancy: 100% 3 NORWOOD PLAZA 1848 NORWOOD PLAZA HURST, TX 76054 SVN David Cook Co, LLC Page 21
Sale Comps Summary SUBJECT PROPERTY PRICE BLDG SF PRICE/SF Norwood Plaza 1848 Norwood Plaza Hurst, TX 76054 $995,000 17,728 SF $56.13 SALE COMPS PRICE BLDG SF PRICE/SF CLOSE 1 2 3 One Carrier Place 625 N Carrier Pky Grand Prairie, TX 75050 2321 S Belt Line Rd Grand Prairie, TX 75051 Corporate Court Office Center 1610 Corporate Ct Irving, TX 75038 $492,275 8,722 SF $56.44 06/03/2016 $1,250,000 17,643 SF $70.85 04/06/2017 $1,250,000 13,026 SF $95.96 02/23/2017 PRICE BLDG SF PRICE/SF CLOSE Totals/Averages $997,425 13,130 SF $75.97 NORWOOD PLAZA 1848 NORWOOD PLAZA HURST, TX 76054 SVN David Cook Co, LLC Page 22
DEMOGRAPHICS 1848 Norwood Plaza Hurst, TX 76054 NORWOOD PLAZA 1848 NORWOOD PLAZA HURST, TX 76054 SVN David Cook Co, LLC Page 23
Demographics Report 1 MILE 3 MILES 5 MILES Total population 10,049 102,248 230,677 Median age 45.2 39.1 38.4 Median age (male) 44.4 37.6 37.1 Median age (female) 45.7 40.3 39.4 Total households 4,196 41,099 90,220 Total persons per HH 2.4 2.5 2.6 Average HH income $84,541 $81,604 $87,002 Average house value $179,743 $196,741 $235,373 * Demographic data derived from 2010 US Census NORWOOD PLAZA 1848 NORWOOD PLAZA HURST, TX 76054 SVN David Cook Co, LLC Page 24
Demographics Map POPULATION 1 MILE 3 MILES 5 MILES Total population 10,049 102,248 230,677 Median age 45.2 39.1 38.4 Median age (male) 44.4 37.6 37.1 Median age (Female) 45.7 40.3 39.4 HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES Total households 4,196 41,099 90,220 # of persons per HH 2.4 2.5 2.6 Average HH income $84,541 $81,604 $87,002 Average house value $179,743 $196,741 $235,373 * Demographic data derived from 2010 US Census NORWOOD PLAZA 1848 NORWOOD PLAZA HURST, TX 76054 SVN David Cook Co, LLC Page 25
ADVISOR BIOS 1848 Norwood Plaza Hurst, TX 76054 NORWOOD PLAZA 1848 NORWOOD PLAZA HURST, TX 76054 SVN David Cook Co, LLC Page 26
Advisor Bio & Contact DAVID COOK, SIOR, SEC Managing Director PROFESSIONAL BACKGROUND David Cook, SIOR, SEC serves as Managing Director of Sperry Van Ness / David Cook Co. LLC, specializing in the sale of office, industrial and retail properties in the Dallas/Fort Worth area. With over 40 years of experience and having been an SIOR since 1988, David has secured over 2,500 successful transactions. In 2007 and 2008 alone his investment sales totaled over $100,000,000. Since joining Sperry Van Ness his sales have placed him among the top 100 brokers every year. In 2007 David achieved the highest honors by making "Partner's Circle" and also winning the "Outstanding Client Satisfaction Award". In 2008 he made Partner's Circle again and his production earned him the number two spot in the nation out of 1,000 Sperry Van Ness brokers. Prior to joining Sperry Van Ness, David founded the David Cook Company. Previously, he was with Darrow Hildreth, Inc., for eight years as executive vice president. During his career Cook has represented both landlords and tenants, sold properties to and for both investors and users and successfully negotiated build to suits for several companies. His experience and insights have enabled him to handle every aspect of very difficult commercial transactions. 14902 Preston Road Suite 404-724 Dallas, TX 75254 T 972.387.5600 C 214.228.3222 david.cook@svn.com TX #0229066 Cook is a former director of the North Texas Association of Commercial Realtors. He is presently on the board of Evantell, a nonprofit faith ministry. He received his bachelor's degree in business administration, with an emphasis in real estate and finance from Southern Methodist University and a Masters of Theology from Dallas Theology Seminary in Dallas, Texas. NORWOOD PLAZA 1848 NORWOOD PLAZA HURST, TX 76054 SVN David Cook Co, LLC Page 27
Advisor Bio & Contact STEVE FITHIAN, CCIM, CPM, SEC Managing Director PROFESSIONAL BACKGROUND Steve Fithian serves as Senior Advisor and Managing Director for SVN Trinity Advisors. With over 25 years of commercial real estate experience, Fithian specializes in selling and overseeing investment property sales that include multifamily, mini-warehouse, office, retail, undeveloped land and finished lots. He also organizes, manages, and acts as the general partner in property partnerships. Fithian holds the designation of Certified Commercial Investment Member (CCIM) and is the former chairperson of the North Texas Chapter CCIM Membership Committee. In 2011, he was named a counselor to the Society of Exchange Counselors. The Society of Exchange Counselors is a marketing group consisting of approximately 100 investment brokers from various parts of the country who have proven their skills at solving clients' problems. 3000 Race Street, Suite 100 Fort Worth, TX 76111 T 817.288.5524 C 817.312.1388 steve.fithian@svn.com TX #0407418 Fithian also is a member of the Texas Association of REALTORS where he was appointed a member of the 2004 Regulatory & Private Property Rights Task Force. In addition, he is a member and former chairman of the Society of Commercial REALTORS in Fort Worth. In 2008, he received the Charles D. Tandy Commercial REALTOR of the Year Award, which is given by the Society of Commercial REALTORS to the REALTOR who best exemplifies the highest professional standards for commercial real estate. In 2002, he was awarded the William C. Jennings Award for Commercial Transaction of the Year in Texas by the Texas Association of REALTORS. Fithian has also received several sales awards from SVN including Partner's Circle awards in 2005, 2006, and 2014, and the Achiever's Award in 2007, 2008, 2009 and 2010. Fithian is a licensed broker in Texas and California, and is a certified public accountant. Additionally, he earned a Bachelor of Arts in economics with an emphasis in accounting from Claremont McKenna College. NORWOOD PLAZA 1848 NORWOOD PLAZA HURST, TX 76054 SVN David Cook Co, LLC Page 28
14902 Preston Road, Suite 404-724 Dallas, TX 75254 972.387.5600 www.svn.com SVN Trinity Advisors 3000 Race Street, Suite 100, Fort Worth, TX 76111 817.288.5524 svntrinity.com All SVN Offices Independently Owned & Operated 2014 All Right Reserved