Village at Crossroads (96 Lots) Cross Oak Ranch (1,934 Lots) EXCLUSIVE OFFERING $4,250,000 / 6.50% CAP EXP DALLAS 214.522.7200 JOE CAPUTO joe@exp1031.com BOB MOORHEAD bob@exp1031.com property. Convenient and accessible 2-tenant building originally built in 2007. Significant renovations to 5,253 square feet occupied by 7-Eleven in 2012. Site has operated as a c-store and liquor store since 1970. tenant mix / lease structure. Brand new, 15-year net leases beginning in 2012. Complimentary tenant mix with 7-Eleven and The Vineyard liquor store. 7- Eleven corporate guarantee: S&P Rated AA- The Vineyard has a strong personal guarantee. Limited landlord responsibility. location. At corner of US Highway 380 (27,638 Cars / Day) and FM 720 (8,667 Cars / Day). Project to expand FM 720 to 6 lanes is fully funded. 570,000 SF shopping center adjacent to site is currently under construction; anchor will be a Walmart Supercenter projected to open for business in Fall 2013. Other retailers in trade area include Sonic Drive-In, AutoZone, Dickey s Barbeque, and Exxon. Subject property is near recently constructed Providence Elementary School which opened in 2004 and has an enrollment of 820 students. Average annual household income within a 1-mile radius of the site is $71,265. Located in Denton County, one of the fastest growing counties in the US; 53% growth 2000-2010.
Table of contents Disclaimer PAGE 1: PAGE 2: PAGE 3: PAGE 4: PAGE 5: PAGE 6-7: PAGE 8: PAGE 9-10: PAGE 11: COVER TABLE OF CONTENTS DISCLAIMER INVESTMENT TENANT LEASE OVERVIEWS RENT ROLL PROPERTY PHOTOS AERIAL PHOTOS LOCATION OVERVIEW LOCATION MAPS DEMOGRAPHICS Disclaimer EXP Realty Advisors, Inc. ( Agent ) has been engaged as an agent for the sale of the property located at FM 720 & US Highway 380, Aubrey, TX by the owner of the Property ( Seller ). The Property is being offered for sale in an as-is, where-is condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. The enclosed materials are being provided solely to facilitate the prospective investor s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Agent nor the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein. Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller. Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller s obligations hereunder have been satisfied or waived. By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller and Agent.
Investment overview TENANT OVERVIEW PRICE: $4,250,000 CAP RATE: 6.50% NET OPERATING INCOME: $276,000 BUILDING AREA: LAND AREA: 8,553+ Square Feet 2.35+ Acres YEAR BUILT / RENOVATED: 2007 / 2012 LANDLORD RESPONSIBILITY: OWNERSHIP: Roof and Structure Fee Simple Interest OCCUPANCY: 100% Tenant overview 7-ELEVEN THE VINEYARD The brand name 7-Eleven is now part of an international chain of convenience stores, operating under Seven-Eleven Japan Co., Ltd., primarily operating as a franchise. It is the largest chain store operator with more than 45,900 locations operating around the world, surpassing the previous record-holder McDonald s Corporation in 2007. Its stores are located in eighteen countries, with its largest markets being Japan, the United States, Canada, the Philippines, Hong Kong, Taiwan, Malaysia and Thailand. 7-Eleven, Inc. as a former U.S.-originating company, is a subsidiary of Seven-Eleven Japan Co., Ltd, which in turn is owned by Seven & I Holdings Co. of Japan. The US chain has its headquarters in downtown Dallas, Texas. 7-Eleven operates, franchises and licenses more than 7,000 stores in North America. Of the close to 5,400 stores the company operates and franchises in the United States, more than 3,600 are franchised. Internationally, 7-Eleven licensees and affiliates operate approximately 34,000 7-Eleven and other convenience stores in countries including Japan, Australia, Taiwan, Singapore, Philippines, Sweden, Denmark, South Korea, Thailand, Norway, Turkey, Malaysia, China, Hong Kong and the U.S. territory of Puerto Rico. 7-Eleven focuses on meeting the needs of convenience-oriented customers by providing a broad selection of fresh, high-quality products and services at everyday fair prices, speedy transactions and a clean and friendly shopping environment. Each store s selection of about 2,500 different products and services is tailored to meet the needs and preferences of local customers. Stores typically vary in size from 2,400 to 3,000 square feet and are most often located on corners for great visibility and easy access. 7-Eleven was No. 2 on Forbes magazine's "Top Franchise for the Money" for 2012, No. 1 in Store Growth by Convenience Store News for 2012, and No. 3 on Forbes magazine's "Top 20 Franchises to Start" for 2011. 7-Eleven is an ideal co-tenant for the Vineyard, a local spirits and wine store. The Vineyard operates multiple locations in North Texas and the lease has a strong personal guarantee. 3
Rent roll Square Lease Term Years Rent Rent Lease Tenant Feet GLA Begin End Remain Begin Monthly PSF Annually PSF Type Options / Notes 7-Eleven, Inc., a Texas corporation 5,253 61% July-2012 July-2027 15 Current $16,500 $3.14 $198,000 $37.69 NN Four (4) Five (5) Year Options July-2022 $18,150 $3.46 $217,800 $41.46 July-2027 $19,965 $3.80 $239,580 $45.61 Option 1 July-2032 $21,962 $4.18 $263,544 $50.17 Option 2 July-2037 $24,158 $4.60 $289,896 $55.19 Option 3 July-2042 $26,573 $5.06 $318,876 $60.70 Opened July 2012 Option 4 July-2047 $29,231 $5.56 $350,772 $66.78 Cheers Spirit and Liquors, LLC dba The Vineyard 3,300 39% July-2012 July-2027 15 Current $6,500 $1.97 $78,000 $23.64 NN Opened July 2012 *Rent increases 2% annually for duration of the lease TOTALS 8,553 100% Current $23,000 $276,000 NN ADJACENT RETAIL 4
PROPERTY PHOTOS SUBJECT PROPERTY DURING RENOVATION SUBJECT PROPERTY DURING RENOVATION 5
Aerial photograph Village at Crossroads (96 Lots) Planned Opening 2013 Providence (1,554 Lots) Providence Elementary School Cross Oak Ranch (1,934 Lots) 6
Aerial photograph Lewisville Lake Projected Start: 2013 Date: July 2011 7
LOCATION OVERVIEW IMMEDIATE TRADE AREA The subject property is located at the intersection of US Highway 380 (27,638 Cars / Day) and FM 720 (8,667 Cars / Day). US Highway 380 connects the booming D/FW suburbs of Denton, Frisco, and McKinney, positioning the site in the center of new development that has entered the area. In anticipation of accelerating growth, a fully funded $35 million expansion project on the segment of FM 720 linking US Highway 380 to the FM 720 segment of El Dorado Parkway is expected to commence in 2013. Expansion began in July of 2011 on the El Dorado Parkway segment of FM 720 and is expected to be completed in 2013. Both of these projects will expand the road to 6 lanes. This endeavor will significantly enhance the accessibility of the immediate trade area to traffic in west Frisco. Additionally, the FM720 expansion will compliment the convenience that the newly constructed Lewisville Lake Toll Bridge delivers to the trade area. This bridge connects FM 720 with Interstate 35 to the west and provides the only access across Lake Lewisville between the two points. The subject property is adjacent to a retail development that will be anchored by a Walmart Supercenter and will have approximately 570,000 SF of leasable retail area. The Walmart Supercenter is scheduled to open in Fall 2013. The site is also next to the recently constructed Village at Crossroads (built 2009) shopping center. This complex is home to 9-tenants which include Domino s Pizza and numerous locally owned enterprises. Dickey s Barbeque, a long time local Dallas favorite and now national chain restaurant has a location just west of the subject property along US Highway 380. Additional retailers in the immediate trade area include Auto Zone, Sonic Drive-In, and Exxon. The residential area surrounding the subject property is mostly newly constructed middle to upper-middle class single family homes. The mean annual household income within a 1-mile radius of the site is $71,265. The site is near Providence Elementary School (820 Students), which is been lauded by the Texas Education Agency as either an Exemplary or Recognized Campus every year since 2006. AUBREY / DENTON COUNTY, TX Aubrey is a city in Denton County, TX with a population of 2,595 located approximately 30-miles north of both Dallas and Fort Worth. This community is in the heart of an emerging growth and development belt. Over the previous decade Denton County s population has increased by 53% to 662,614. This trend is expected to continue with projected populations of 800,0528 and 1,011,101 residents in 2020 and 2030 respectively. This growth coupled with a population surge in Collin County to the east have triggered a transformation of the exurban areas in the eastern half of Denton County. Little Elm, a city adjacent to the immediate trade area has grown over 800% between 2000 and 2010. The location of the University of North Texas (33,000 students) in Denton was one important contributor to this growth. The opening of Fort Worth Alliance Airport, the world s first purely industrial airport in 1989 has drawn companies such as American Airlines, BNSF, Bell Helicopter, DynCorp, and FedEx to set up significant operations in southern Denton County. Additionally, proximity to Dallas and Fort Worth has helped drive growth in the area for decades. DALLAS-FORT WORTH-ARLINGTON MSA The Dallas Fort Worth Arlington Metropolitan Statistical Area encompasses 12 counties within the U.S. state of Texas. It is the economic and cultural hub of the region commonly called North Texas or North Central Texas and is the largest land-locked metropolitan area in the United States. The 2010 U.S. Census has the Dallas-Fort Worth Metroplex population at 6,371,773. During the 12-month period from July 2008 to July 2009, the Dallas- Fort Worth-Arlington metropolitan area gained 146,530 new residents, more than any other metropolitan area in the United States. The area's population has grown by about 1 million since the last census was administered in 2000. The Dallas Fort Worth Arlington MSA is, by population, the largest metropolitan area in Texas, the largest in the South, the 4 th largest in the United States, and the 10 th largest in the Americas. The metropolitan area has the 6 th largest gross metropolitan product (GMP) in the United States, and approximately 10 th largest by GMP in the world. Dallas and its suburbs have one of the highest concentrations of corporate headquarters in the United States. As such, one of the largest industries in the Metroplex is conducting business. The Metroplex also contains the largest Information Technology industry base in the state (often referred to as Silicon Prairie or the Telecom Corridor), due to the large number of corporate IT projects and the presence of numerous electronics, computing and telecommunication firms such as Texas Instruments, HP Enterprises Services, Dell Services, i2, AT&T, Ericsson, CA and Verizon in and around Dallas. On the other end of the business spectrum, and on the other side of the Metroplex, the Texas farming and ranching industry is based in Fort Worth. Several major defense manufacturers, including Lockheed Martin, Bell Helicopter Textron, and Raytheon, maintain significant operations in the Metroplex. ExxonMobil, the #1 corporation on the Fortune 500 listings, is headquartered in Irving, Texas. 8
LOCATION MAP 9
LOCATION MAP 10
DEMOGRAPHICS Demographic snapshot Radius 1 Mile 3 Mile 5 Mile Population: 2016 Projection 4,328 19,236 39,090 2011 Estimate 3,607 16,015 32,612 2010 Census 3,454 15,248 31,005 Growth 2011-2016 20.00% 20.10% 19.90% Growth 2010-2011 4.40% 5.00% 5.20% 2011 Households: 2016 Projection 1,417 6,330 13,012 2011 Estimate 1,204 5,341 10,970 2010 Census 1,153 5,079 10,425 Growth 2011-2016 17.70% 18.50% 18.60% Growth 2010-2011 4.40% 5.20% 5.20% Owner Occupied 1,004 4,570 9,150 Renter Occupied 200 770 1,820 2011 Avg Household Income $71,265 $73,431 $71,888 2011 Med Household Income $51,217 $56,626 $54,701 2011 Per Capita Income $24,382 $24,800 $24,199 2011 Households by Household Inc: Income Less than $15,000 124 441 942 Income $15,000 - $24,999 84 340 784 Income $25,000 - $34,999 106 405 964 Income $35,000 - $49,999 274 1,005 2,116 Income $50,000 - $74,999 198 1,312 2,525 Income $75,000 - $99,999 163 768 1,477 Income $100,000 - $149,999 168 686 1,369 Income $150,000 - $199,999 45 193 409 Income $200,000+ 42 192 385 Lewisville Lake Toll Bridge Downtown Dallas, TX 11