OFFERING MEMORANDUM Youree Plaza 7230 Youree Dr Shreveport, LA
Exclusively Listed By SCOTT HENARD SVP & Regional Director DIRECT 1 214 692 2046 MOBILE 1 972 998 7373 scott.henard@matthews.com License # 684841 (TX) JORDAN POWELL Associate Shopping Centers DIRECT 1 214 692 2160 MOBILE 1916 844 6454 jordan.powell@matthews.com License # 01982070 (CA) BEAU BOX BROKER OF RECORD Contents 4 Investment Overview 6 Property Overview 10 Financial Overview 14 Area Ov erview 16 Tenant Overviews License # BROK.0000072286.A-ACT
Offering Summary Matthews Real Estate Investment Services is pleased to exclusively offer for sale Youree Plaza, an ideally located strip center that is an outparcel to a Sam s Club and Target in the premier retail corridor of Shreveport, LA. The total square footage of the center is 18,221 SF and is currently 88% occupied. Youree Plaza s tenancy is led by a corporate Verizon Wireless store as well as Hertz, One Main Financial, Firehouse Subs, and others. Located on the main thoroughfare of Shreveport, Youree Plaza offers an investor strong initial double-digit returns with additional upside through lease-up of the current vacancy. 4 OFFERING MEMORANDUM
Investment Highlights NATIONAL TENANTS 81% of existing tenants are national brands EXCELLENT VISIBILITY Center is an outparcel to a high performing Sam s Club and Target in the busiest retail corridor of Shreveport GOOD DAYTIME POPULATION Over 33,000 vehicles pass the center each day with a 3-mile population of nearly 60,000 VALUE-ADD OPPORTUNITY 2,200 SF of vacancy allows an investor to increase their cash flow thru lease-up. E-COMMERCE PROOF TENANCY 6 of the 7 existing tenants are service oriented Investment Summary Pricing Summary: Sale Price $5,810,000 In Place Cap Rate 6.50% Stabilized Cap Rate 7.07% Price PSF ($) $319 Total Land Area ±1 Acre Financial: Year 1 NOI $377,469 Stabilized NOI $410,664 Net Rentable Area 18,221 In-Place Occupancy 87.9% GREAT RETAIL SYNERGY Target, Sam s, Lowe s, JC Penney, Best Buy, TJ Maxx, Michael s, Kohl s, Dick s Sporting Goods, among others, are all located within a stone s throw from this property. YOUREE PLAZA 5
Property Overview Physical Description Parcel Map PROPERTY NAME YOUREE PLAZA ADDRESS 7230 Youree Drive LOCATION SHREVEPORT, LA 71105 SQUARE FOOTAGE (GLA) 18,221 SF LAND AREA 43,560 SF (1.00 ACRES) APN(S) 171329-073-0001-00 NUMBER OF STORIES 1 PARKING SPACES (ESTIMATE) 125 FREE SURFACE SPACES PARKING RATIO 6.86 : 1,000 TRRAFFIC COUNTS > Youree Drive ±33,000 ADT > E 70th Street ±30,000 ADT 6 6 OFFERING MEMORANDUM
Site Plan YOUREE PLAZA YOUREE PLAZA 7
Tenant Map 8 OFFERING MEMORANDUM
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Financial Overview Rent Roll SUITE TENANT LEASE START LEASE END Sq. Ft. % OF GLA CONTRACT RENTAL RATE RENT PER SF ANNUAL YEARLY MONTHLY YEAR MONTH RECOVERY RECOVERY PER AREA OPTIONS 103 Verizon Wireless Aug-04 Feb-20 6,184 33.9% $173,770 $14,481 $28.10 $2.34 $25,033 $4.05 2x5 years Offering Memorandum 104 Julie's Nails and Spa Jan-05 Jan-20 1,411 7.7% $36,122 $3,010 $25.60 $2.13 $7,078 $5.02 106 LaBloom Florist Dec-04 Nov-19 1,700 9.3% $39,593 $3,299 $23.29 $1.94 $8,528 $5.02 108 Batteries Plus Dec-07 Dec-17 1,520 8.3% $41,519 $3,460 $27.32 $2.28 $7,625 $5.02 109 Vacant 2,200 12.1% $48,400 $4,033 $22.00 $1.83 $12,817 $5.83 110 OneMain Financial Jan-17 Jan-22 2,000 11.0% $44,000 $3,667 $22.00 $1.83 $10,477 $5.24 112 Hertz Oct-06 Dec-19 1,200 6.6% $28,800 $2,400 $24.00 $2.00 $6,020 $5.02 113 Firehouse Subs Mar-05 Mar-20 2,006 11.0% $44,995 $3,750 $22.43 $1.87 $10,063 $5.02 1x5 years, Jan 2020 thru Dec 2024, Jan 1 2020 @ $24.00 PSF, Jan 1 2021 @ $25.00 PSF Occupied Totals - In Place 16,021 87.9% $408,798 $34,067 $25.52 $2.13 $74,824 $4.67 Vacant Totals 2,200 12.1% $48,400 $4,033 $22.00 $1.83 $12,817 $0.80 Totals 18,221 100.0% $457,198 $38,100 $25.09 $2.09 $87,641 $5.47 Notes: Hertz has unrestricted Termination Option after Dec. 31 2017 per 3rd Amendment 10 OFFERING MEMORANDUM
Lease Expiration Schedule 10-Year Rollover YEAR ENDING SQ. FT. ANNUAL % OF TOTAL AGGREGATE % OF TOTAL 1 2017 1,520 8% 8% 2 2018 0 0% 8% 3 2019 2,900 16% 24% 4 2020 9,601 53% 77% 5 2021 0 0% 77% 6 2022 2,000 11% 88% 7 2023 0 0% 88% 8 2024 0 0% 88% 9 2025 0 0% 88% 10 2026 0 0% 88% 11 2027 0 0% 88% Total 18,221 100% % of NRA 60% 50% 40% 30% 20% 10% 0% 53% 16% 8% 11% 0% 0% 0% 0% 0% 0% 0% 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 YEAR YOUREE PLAZA YOUREE PLAZA 11
Income & Expenses Offering Memorandum Year Income As-Is NOI Stabilized NOI Total $/SF Total $/SF Rental Income $408,798 $22.44 $457,198 $25.09 Other Income $0 $0.00 $0 $0.00 General Vacancy $0 $0.00 ($27,242) ($1.50) Reimbursement Revenue $74,824 $4.11 $87,641 $4.81 Effective Gross Income $483,623 $26.54 $517,598 $28.41 Expenses Real Estate Taxes $35,854 $1.97 $35,854 $1.97 Insurance $15,117 $0.83 $15,117 $0.83 CAM $40,435 $2.22 $40,435 $2.22 Management Fees $14,748 $0.81 $15,528 $0.85 EGI (%) 3.0% 3.0% Administrative / Professional Fees $0 $0.00 $0 $0.00 Total Operating Expense $106,154 $5.83 $106,934 $5.87 Net Operating Income $377,469 $20.72 $410,664 $22.54 12 12 OFFERING MEMORANDUM
Summary Tenant Profile TENANT NAME SQ.FT. LEASE EXPIRATION IN-PLACE RENT % OF REVENUE TENANT TYPE CREDIT Verizon Wireless 6,184 Feb-20 $173,770 42.5% Anchor National/Credit OneMain Financial 2,000 Jan-22 $44,000 10.8% Shops National/Credit Firehouse Subs 2,006 Mar-20 $44,995 11.0% Restaurant Local/Regional Kabloom Florist 1,700 Nov-19 $39,593 9.7% Shops Local/Regional Batteries Plus 1,520 Dec-17 $41,519 10.2% Shops National/Credit Julie's Nails and Spa 1,411 Jan-20 $36,122 8.8% Shops Local/Regional Hertz 1,200 Dec-19 $28,800 7.0% Shops National/Credit YOUREE PLAZA Shops - 46% Restaurants - 11% Anchor - 43% Credit/National Tenant - 35% Local/Regional Tenant - 65% 13
Area Overview Offering Memorandum 14 Shreveport, LA As the third-largest city in the state of Louisiana and the seat of Caddo Parish, Shreveport extends along the Red River. Shreveport was once a major player in the United States oil business, and at one time could boast Standard Oil of Louisiana as a locally based company. Recently, Shreveport has largely transitioned into a service economy specifically within the gaming industry and tourism. 14 OFFERING MEMORANDUM Demographics POPULATION 1 Mile 3 Mile 5 Mile 2022 Projection 6,339 57,270 137,583 2017 Estimate 6,335 57,159 136,813 HOUSEHOLD 1 Mile 3 Mile 5 Mile 2022 Projection 3,083 26,062 56,971 2017 Estimate 3,077 25,875 56,291 INCOME 1 Mile 3 Mile 5 Mile Average Household Income $83,963 $80,513 $66,847
Regional Map Local Map YOUREE PLAZA Business Climate The Shreveport-Bossier City was recently named as a growing area for the technology industry by technology magazine Innovation and Tech Today. The recent increase in tech industry jobs through employers such as CSRA and Eatel has put the area on a shortlist of places to watch. The growing number of technology and IT companies located in the region has created nearly 3,000 new tech jobs in the last few years. In addition to the tech growth, the region has seen an increase of Fortune 500 companies like CenturyLink and IBM to technology start-ups such as CyberReef Solutions. Shreveport allows those who live there to work virtually anywhere. YOUREE PLAZA 1515
Tenant Overviews 16 OFFERING MEMORANDUM
Property Name Ownership Annual Revenue Verizon Communications Inc. Public $126 Billion www.vzw.com Verizon is one of the largest communication technology companies in the world. The Company, through its subsidiaries, provides communications, information and entertainment products and services to consumers, businesses, and governmental agencies. Its segments include Wireless and Wireline. The Wireless segment offers communications products and services, including wireless voice and data services and equipment sales, to consumer, business and government customers across the United States. Property Name Ownership Annual Revenue Firehouse Subs Private $15.12 Million www.firehousesubs.com Firehouse Restaurant Group operates and franchises more than 500 Firehouse Subs sandwich shops in Florida and 20 other states. The chain offers a variety of hot and cold sub-style sandwiches with firehouse inspired names. The menu also features soups, salads, and sides. About 30 of the eateries are company-owned, while the rest are franchised. YOUREE PLAZA 17
CONFIDENTIALITY AND DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Youree Plaza located at 7230 Youree Drive, Shreveport, LA ( Property ). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is base d in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.
Exclusively Listed By SCOTT HENARD SVP & Regional Director DIRECT 1 214 692 2046 MOBILE 1 972 998 7373 scott.henard@matthews.com License # 684841 JORDAN POWELL Associate Shopping Centers DIRECT 1 214 692 2160 MOBILE 1 916 844 6454 jordan.powell@matthews.com License # 01982070 (CA) BEAU BOX BROKER OF RECORD License # BROK.0000072286.A-ACT Youree Plaza 7230 Youree Dr Shreveport, LA YOUREE PLAZA 19