Home Depot Dallas, TX LONG-TERM ABSOLUTE NNN ASSET With Assumable Financing 2800 Forest Lane, Dallas TX (map)
Home Depot PROperty Summary 2800 Forest Lane, Dallas TX (map) PRICE: $20,185,000 CAP: 5.45% Rentable SF... 163,545 SF Price per SF... $123.42 land area...14.85 Acres annual Rent/ft...$6.73 Lease Expiration...1/31/2037 Assumable financing*...$14,022,174 Interest rate...4.25% Loan maturity date...5/31/2024 *This loan must be assumed at closing. Listing Team Contact Info zeb ripple zripple@capitalpacific.com (415) 274-2702 CA BRE# 01002010 Chris Kostanecki ck@capitalpacific.com (415) 274-2701 CA BRE# 00869657 Chris peters cpeters@capitalpacific.com (415) 274-2703 CA BRE# 01339983 In Conjunction with TX Licensed Broker: Steve Sieling, Azur Commercial Capital, LLC steve@azurcc.com (214) 888-8262 home depot 2
core characteristics FREESTANDING HOME DEPOT LOCATED IN A DOMINANT RETAIL AREA WITH DIRECT ACCESS FROM INTERSTATE 635 IN DALLAS, TX (AN INCOME TAX FREE STATE). recent long-term extension demonstrates tenant s commitment to this location LEASE HIGHLIGHTS This absolute NNN lease is corporately guaranteed and has over 21 years remaining on the primary term. The lease features rent escalations throughout the primary term and in each option, providing for inflation protection in the future. INVESTMENT HIGHLIGHTS Home Depot has a current S&P credit rating of A, with continued growth of revenue and profit. The tenant recently extended the lease for an additional 20 years, demonstrating a strong commitment to this location. The subject property is being offered with attractive in-place financing that must be assumed, offsetting an investors risk due to recent instability in debt markets (see page 8 for details). EASILY ACCESSIBLE The site features excellent ingress/egress from Forest Lane and is located just off the Lyndon B Johnson Freeway. Combined traffic counts past the site are currently greater than 300,000 cars per day. The Home Depot is in close proximity to the I-635, where the nearly $3 billion LBJ Express project has now been completed (see page 5 for more details). INFILL RETAIL The subject property is a truly infill site in Dallas proper and benefits from excellent demographics. The population in a 5-mile radius is greater than 250,000 with average incomes in excess of $87,000. Ideally situated along Forest lane, a dense trail corridor, Home Depot benefits from close proximity to national retailers such as CVS, LA Fitness, Burlington Coat Factory, Starbucks Courtyard Marriot and several others. home depot 3
photos site features excellent ingress/egress from Forest Lane and is located just off the Lyndon B Johnson Freeway home depot 4
277,840 DAILY 635 Recently Completed, Massive Interstate Project Directly Benefits Subject Property VALLEY VIEW This Home Depot is visible from, and is readily accessible from Interstate 635. I 635 is a 37-mile-long partial loop around Dallas, known locally as the LBJ. Together with Spur 408, a portion of Loop 12 (Walton Walker Freeway), and a portion of Interstate 35E, 635 completes the beltway which encircles Dallas. 635 LUNA ONE WAY T JOSEY I-635 was originally designated by the Texas Department of Transportation in 1959 as a loop around the eastern side of Dallas, connecting with I-35E to the northwest and southwest sides of the city. A $2.7 billion project was started on May 16, 2011, to widen I-635 and dig subsequent high-occupancy toll (HOT) lane tunnels beneath the primary roadway from I-35E to the High Five Interchange, a length of 17 miles. EMERALD CROWN T 35E REEDER HARRY HINES DENTON ROYAL DENNIS Construction time was estimated in 2011 at five years and was completed and opened for traffic on September 10, 2015. The new freeway features tolled express lanes, known as TEXpress lanes, in between the main lanes or underneath them. The completion of this major infrastructure upgrade directly benefits the subject property in numerous ways, including improved traffic flow and better access on and off of I 635 at the adjacent access ramps. Well in excess of 300,000 vehicles travel this roadway daily. TRAFFIC FLOW LEGEND T Express Toll Lanes Freeway Lanes NORTHWEST HWY Frontage Road By-Pass Toll Gantry Intersection 12 Note: Map not to scale. Final roadway schematics may vary slightly. STOREY WALNUT HILL MANANA N 12 home depot 5
aerial Located in Dense, In-fill Dallas Market with over 250,000 residents within a 5-mile radius 635 35E 40 DAILY 277,8 Forest Lane PARK FOREST Herbert Marcus Elementary Everett L. DeGolyer Elementary Cromwell Drive EXIT 440A FOREST LANE Webb Chapel Road 13,590 DAILY Dennis Road 16,870 DAILY Royal Lane 35E FP Caillet Elementary DALLAS 35E CITY CENTER home depot 6
location Dallas, TX Economy FORTUNE 500 COMPANIES FORTUNE 100 COMPANIES COMPANY HEADQUARTERS HEART OF THE SILICON PRAIRIE Dallas s efficiency as a headquarters city is based on: Transportation system with air operations to 145 US and 50 international cities Large metro and professional services workforce - 484,100 jobs Affordable cost of business DALLAS-FORT WORTH INTERNATIONAL AIRPORT Dallas is the 3rd most popular destination for business travel in the US DFW is the largest airport in Texas and the 2nd largest in the US 60,436,266 passengers went through DFW in 2013 18 CAREER OPPORTUNITIES 40 617 Dallas job growth has exceeded the nation s since 2003 and is forecasted to grow faster than the nation s through 2020 Dallas s unemployment rate has been below the national average for over 6 years Dallas-Fort Worth s job growth has been led by construction and professional and business services home depot 7
income & expense PRICE $20,185,000 Loan Assumption/Cash Flow Price Per Square Foot: $123.42 Outstanding Principal Balance (as of 04/01/16)* $14,022,174 Capitalization Rate: 5.45% Interest Rate 4.25% Downpayment $6,162,826 Amortization 30 Existing Loan Balance (04/01/16) $14,022,174 Term 10 Total Rentable Area (SF): 163,545 Due Date 5/31/2024 Lot Size (AC): 14.85 Loan Assumption Fee - 1.5% (Buyer/Seller) $210,333 STABILIZED INCOME Per Square Foot Lender American Fidelity Scheduled Rent $6.73 $1,100,000 Net Operating Income $1,100,000 Effective Gross Income $6.73 $1,100,000 Debt Service ($855,975) LESS Per Square Foot Pre-Tax Cash Flow $244,025 Taxes NNN $0.00 Debt Coverage Ratio 1.29 Insurance NNN $0.00 Total Operating Expenses NNN $0.00 Pre-Tax Leveraged Cash-on-cash Return 4.0% NET OPERATING INCOME $1,100,000 Principal Paydown (Year 1 of Ownership) $255,045 Total Return $499,070 Yield 8.1% *Debt must be assumed and cannot be prepaid. This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. home depot 8
rent roll TENANT INFO LEASE TERMS RENT SUMMARY Tenant Name Sq. Ft. Term Current Rent Monthly Rent Yearly Rent Monthly Rent/FT Yearly Rent/FT Home Depot 163,545 12/05/96 01/31/27 $1,100,000 $91,667 $1,100,000 $0.56 $6.73 02/01/27 01/31/37 $100,000 $1,200,000 $0.61 $7.34 Option 1 02/01/37 01/31/42 $100,833 $1,210,000 $0.62 $7.40 Option 2 02/01/42 01/31/47 $100,833 $1,210,000 $0.62 $7.40 Option 3 02/01/47 01/31/52 $110,917 $1,331,000 $0.68 $8.14 Option 4 02/01/52 01/31/57 $110,917 $1,331,000 $0.68 $8.14 Option 5 02/01/57 01/31/62 $122,008 $1,464,100 $0.75 $8.95 Option 6 02/01/62 01/31/67 $122,008 $1,464,100 $0.75 $8.95 Totals: 163,545 $1,100,000 $91,667 $1,100,000 $0.56 $6.73 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. home depot 9
site plan Forest Lane 16,870 DAILY Site Plan Key Parcel outline: Land Area: 14.85 AC Building Area: 163,545 sf Ingress/Egress: Grissom Lane NOT A PART* *Former Home Depot Regional Headquarters. Currently on market for sale or lease. Please contact broker for more information. Mansill Lane home depot 10
tenant overview www.homedepot.com home depot The Home Depot is an American retailer of home improvement, lawn and garden and construction products and services. They are the largest home improvement retailer in the United States ahead of rival Lowe s. The Home Depot is currently the 5th largest retailer in the United States and 3rd largest in the world. The company has over 365,000 full time employees and currently operates approximately 2,260 retail locations in all 50 states, Canada, and Mexico. The corporate headquarters is located outside of Atlanta, GA. Home Depot Corporation stats & Rankings 2014 Revenues - $81.71 Billion 2014 Fortune 500 Ranking - #33 Listed as 3rd Largest Retailer In The World A Investment Grade Standard & Poor s home depot 11
demographics & maps Population 1-Mile 3-Mile 5-Mile 2010 13,932 88,087 238,749 2015 14,350 91,049 251,826 2020 15,043 95,467 267,596 Outstanding demographics 277,840 DAILY 16,870 DAILY 2015 Household incomes 1-Mile 3-Mile 5-Mile Average $60,142 $80,006 $87,345 Median $43,873 $53,280 $56,821 22 min 15 miles 17 min 21 miles fort worth 39 min 33 miles downtown dallas home depot 12
location about Dallas Dallas is a major city in Texas and is the largest urban center of the fourth most populous metropolitan area in the U.S. The city s prominence arose from its historical importance as a center for the oil and cotton industries, and its position along numerous railroad lines. The city had an estimated population of 1,281,047 in 2014. Dallas is the largest economic center of the 12-county Dallas-Fort Worth-Arlington metropolitan area, which had a population of 6,954,330 in 2014. It is the sixth largest economy in the U.S. with a 2013 real GDP of $448 billion. In 2013, the metropolitan area led the nation with the largest year-over-year increase in employment, and advanced to become the fourth-largest employment center in the nation, with more than three million non-farm jobs. The city s economy is primarily based on banking, commerce, telecommunications, computer technology, energy, healthcare and medical research, and transportation and logistics. The city is home to the third-largest concentration of Fortune 500 companies in the nation. In the latest rankings released in 2013, Dallas was rated as a beta plus world city by the Globalization and World Cities Study Group & Network, and was 14th in the world rankings of GDP by the Organisation for Economic Co-operation and Development. Dallas developed as a strong industrial and financial center, and a major inland port, due to the convergence of major railroad lines, interstate highways, and the construction of Dallas/Fort Worth International Airport, one of the largest and busiest airports in the world. fourth largest employment center in the nation Top Employers in dallas-fort Worth MSA Employer # of Employees* AMR Corporation 24,700 Bank of America Corp. 20,000 Texas Health Resources Inc. 19,230 Dallas ISD 18,314 *Approximate home depot 13
A unique HUMAN RESULTS-DRIVEN client experience The capital pacific experience - our daily commitment to our clients [ www.capitalpacific.com ] zeb ripple zripple@capitalpacific.com (415) 274-2702 CA BRE# 01002010 Chris Kostanecki ck@capitalpacific.com (415) 274-2701 CA BRE# 00869657 Chris peters cpeters@capitalpacific.com (415) 274-2703 CA BRE# 01339983 In Conjunction with TX Licensed Broker: Steve Sieling, Azur Commercial Capital, LLC steve@azurcc.com (214) 888-8262 [ Copyright 2016 Capital Pacific ]
Approved by the Texas Real Estate Commission for Voluntary Use Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords. Information About Brokerage Services 10-10-11 B efore working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly. IF THE BROKER REPRESENTS THE OWNER: The broker becomes the owner s agent by entering into an agreement with the owner, usually through a written - listing agreement, or by agreeing to act as a subagent by accepting an offer of subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner s agent anything the buyer would not want the owner to know because an owner s agent must disclose to the owner any material information known to the agent. IF THE BROKER REPRESENTS THE BUYER: The broker becomes the buyer s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer s agent anything the owner would not want the buyer to know because a buyer s agent must disclose to the buyer any material information known to the agent. IF THE BROKER ACTS AS AN INTERMEDIARY: A broker may act as an intermediary between the parties if the broker complies with The Texas Real Estate License Act. The broker must obtain the written consent of each party to the transaction to act as an intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker s obligations as an intermediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermediary in a transaction: (1) shall treat all parties honestly; (2) may not disclose that the owner will accept a price less that the asking price unless authorized in writing to do so by the owner; (3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and (4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property. With the parties consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party. If you choose to have a broker represent you, you should enter into a written agreement with the broker that clearly establishes the broker s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding. Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee s records. Buyer, Seller, Landlord or Tenant Date Texas Real Estate Brokers and Salespersons are licensed and regulated by the Texas Real Estate Commission (TREC). If you have a question or complaint regarding a real estate licensee, you should contact TREC at P.O. Box 12188, Austin, Texas 78711-2188, 512-936-3000 (http://www.trec.texas.gov) TREC No. OP-K