DALLAS, TEXAS OFFERING SUMMARY
INVESTMENT OVERVIEW Holliday Fenoglio Fowler, L.P. ( HFF ) is pleased to extend to qualified investors the opportunity to acquire Preston Trail Village (the Property ), a 155,993 square-foot Kroger anchored center in one of Dallas most affluent areas. Preston Trail Village is strategically positioned at the high-traffic intersection of Preston and Campbell Road, and is immediately surrounded by several of the wealthiest neighborhoods in north Dallas, including Preston Trail and. The Property has recently undergone a partial re-development which has resulted in an immediate increase in traffic and tenant demand for space. Drafting off this, Preston Trail Village represents the opportunity to acquire a well-located Kroger anchored center with stable in-place cash flow, strong leasing momentum, and significant upside potential through further re-development and lease-up. PROPERTY OVERVIEW Location NE Corner of Preston Road and Campbell Road 17194 Preston Road - Dallas, Texas 75248 Occupancy 82.2% Size 155,993 SF Year Built 1982 Acreage 15.33 TENANT SUMMARY SF % OF GLA Kroger 64,066 SF 41.1% Occupied Shop Space 64,189 SF 41.1% Available Shop Space 27,738 SF 17.8% Total / Average 155,993 100% 2
INVESTMENT HIGHLIGHTS TRAFFIC GENERATING GROCERY ANCHOR Preston Trail Village is anchored by Kroger (NYSE: KR) with a 35 year operating history at the center. Kroger operates 2,796 stores generating over $115 billion in annual revenues Kroger is a publicly traded investment grade tenant (BBB rating by S&P) providing investors stability and surety of income Ranked #1 supermarket chain by revenue in the United States Ranked #1 supermarket chain by market share in the Dallas/Ft. Worth Market Ranked #3 largest retailer in the world Ranked #18 on the Fortune 500 List The Kroger store at Preston Trail Village is equipped with a drive thru pharmacy, and has expressed interest in installing a fuel station at the center. Kroger also boasts rapidly increasing sales as a result of the recent capital improvements performed at the Property. ATTRACTIVE TENANCY & LEASING MOMENTUM Anchored by #1 Grocer in the market driving multiple shopping trips per week Irreplaceable infill corner with extremely high household density and incomes Significant tenant demand 28,426 square feet of new leasing in the last 24 months Internet Resistant Retailers strong concentration of personal services, experiential & food tenants New Shelton School campus will be developed across the street from Preston Trail Village, along Preston Road. It will bring 1,400 students and 270 faculty and drive additional leasing demand at the Property 3
INVESTMENT HIGHLIGHTS EXCEPTIONAL CONSUMER DEMOGRAPHICS Preston Trail Village is immediately surrounded by several of the wealthiest neighborhoods in Dallas / Fort Worth, and benefits from a dense trade area with strong consumer demographics. 1-mile average household incomes of $154,000! Approximately 69,946 households and a population of 138,420 within a 3-mile radius with an average income of $96,413. 3-mile trade area provides an astounding $4.1 billion in consumer spending power with 12.6% projected growth. The Bank of America at the Property holds over $135 million in deposits, over twice the national average. Average home values directly surrounding Preston Trail Village exceed $675,000. Homes in the Preston Trail & communities consistently sell for $1 - $5 million. 3 million square feet of office space within 3 miles with 127,000+ employees. Major employers include Alcate l, RBC Wealth Management, Wells Fargo & Morgan Stanley. RECENT PARTIAL REDEVELOPMENT Preston Trail Village recently received significant capital improvements to improve visibility and reactivate space at the Property. Demolished an obstructive outparcel building to increase visibility and access to Kroger. Kroger s sales have increased 20% as a result of the partial re-development. There remains significant opportunity for new ownership to undertake additional value-add initiatives at the Property to generate substantial increase in NOI and property appreciation. 4
DENSE, AFFLUENT TRADE AREA $1.1 Million FRANKFORD RD Country Club Preston Trail Golf Club Preston / Frankford 480K DFW Lending Group IBC Mortgage Preston Trail $1.5 Million Wells Fargo Summit at Preston Trail 141,668 SF Office Ogle School Amber Trail Corporate Park I 74,180 SF Office PRESTON RD 52,255 VPD Mattison Avenue Amber Trail Corporate Park II 74,180 SF Office Compass Bank PRESTON TRAIL Village 1.62 Acres Raw Land Kroger Future Shelton School Campus Dominion Plaza West 264,008 SF Class A Office Dominion Plaza East 54,687 SF Class A Office Preston Trail Atrium 119,763 SF Office MCCALLUM BLVD CAMPBELL RD 20,510 VPD Bank of America Crossroads Diner Prestonwood $525K 5
LOCATION OVERVIEW Y. SPRINGS RD. LINE RD. haven y Club IEW LN. FRANKFORD RD. TRINITY MILLS RD. MARSH LN. MARSH LN. MIDWAY RD. SPRING VALLEY RD. MIDWAY RD. Addison Airport VALLEY VIEW LN. FOREST LN. PLANO PKWY. PRES. GEORGE BUSH TOLLWAY BENT TREE $1,010,000 DALLAS NORTH TOLLWAY Country Club Dallas Galleria IN Celestial Park Prestonwood Town Center Residential Valley View Center PRESTON RD. PRESTON RD. PRESTON TRAIL $1,500,000 ADDISON $600,000 ARAPAHO RD. Bert Fields Park Northwood Country Club BELT LINE RD. ALPHA RD. OHIO DR. PRESTON TRAIL Village FRANKFORD RD. PRESTON / FRANKFORD $480,000 McCALLUM BLVD. HILLCREST RD. HILLCREST AVE. MEANDERING WAY PRESTONWOOD $525,000 NORTHWOOD HILLS $840,000 FOREST LN. Medical City COIT RD. PLANO PKWY. CAMPBELL RD. J.J. Pearce High School COIT RD. COIT RD. 15TH ST. Richardson High School Cottonwood Park SPRING VALLEY RD. MAHAM RD. WATERVIEW DR. University of Texas - Dallas $1,010,000 GREENVILLE AVE. PRES. $1,010,000 Texas Instrume World Headquarter TRADE AREA OVERVIEW Preston Trail Village is strategically located at the confluence of several of the wealthiest neighborhoods in North Dallas. The area is a location of choice for many affluent households due to its proximity to major employment hubs, including Legacy to the north & Downtown to the south, and leisure offerings, including Country Club, Preston Trails Country Club & Prestonwood Country Club. Due to the Property s convenient access and strong position along two of the area s primary thoroughfares, Preston Trail Village serves a broad trade area with a dense population and total buying power of over $4.1 billion. With very limited grocer options in the trade area, recent retail studies have shown that there is as much as $12 million in annual unmet grocery demand and $13 million in unmet Gasoline Station demand within 1 mile of the center. This supply and demand imbalance works in favor of Preston Trail Village, ensuring the health of the Center s anchor and providing opportunity for substantial sales growth. TRADE AREA DEMOGRAPHICS 1-MILE 3-MILE 5-MILE 2017 Estimated Population 11,256 138,729 370,192 2022 Projected Population 11,995 149,151 394,684 2017-2022 Population Growth 6.57% 7.51% 6.62% # Households 5,219 69,946 166,491 Average Household Income $153,716 $96,413 $97,990 Total Buying Power $493,562,918 $4,161,617,731 $10,412,718,415 TRAFFIC COUNTS Preston Road (Texas State Highway 289) Campbell Road VEHICLES PER DAY 52,255 VPD 20,510 VPD 6
ADDITIONAL INFORMATION If you have any questions or require additional information, please contact: HFF INVESTMENT SALES CONTACTS HFF DEBT CONTACT RYAN SHORE Managing Director rshore@hfflp.com (469) 232.1919 AARON JOHNSON Director ajohnson@hfflp.com (469) 232.1987 JIM BATJER Senior Managing Director jbatjer@hfflp.com (469) 232.1970 BARRY BROWN Senior Managing Director bbrown@hfflp.com (469) 232.1968 ADAM ROOSSIEN Analyst aroossien@hfflp.com (469) 232.1989 JIM CURTIN Director jcurtin@hfflp.com (469) 221.7781 Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, HFF ), HFF Securities L.P. and HFF Securities Limited (collectively, HFFS ) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 24 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF. 2017 Holliday Fenoglio Fowler, LP ( HFF ) and HFF Securities LP ( HFFS ) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 24 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, advisory services, structured finance, private equity, loan sales, and commercial loan servicing. Holliday Fenoglio Fowler, L.P. ( HFF ) has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change. 2323 Victory Avenue Ste. 1200 Dallas, TX 75219 hfflp.com 214.265.0880 214.265.9564