For more information contact: VP of Investments John@CREfirm.com Jerad Rector President 214-281-8616 Jerad@CREfirm.com Corporate Guaranty Sale/Lease back Absolute NNN lease 5 year term with 2, 5 year options to renew Annual rent escalations 7.62% Cap Rate and year 1 Cash on Cash of over 13% Phone: (214) 281-8633 8501 Wade Blvd. Suite 770 Frisco, TX 75034 www.crefirm.com
Table of Contents Exclusive Listing & Disclaimer... 3 Real Estate Investment Details... 4 Property Description... 5 Executive Summary... 6 Cash Flow Analysis... 7 Financial Indicators... 8 Cumulative Analysis... 9 Investment Return Analysis... 10 Location Map... 11 Demographics... 12 Information on Broker Services... 13
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Real Estate Investment Details Analysis Analysis Date December 2016 Property Property Property Address Year Built 1965 Dolex Building Investment Purchase Information Property Type Office Purchase Price $650,000 Tenants 1 Total Rentable Sq. Ft. 3,706 Resale Valuation 7.0% (capitalization of noi) Resale Expenses 7.0% Financial Information Down Payment $130,000 Closing Costs $10,000 Discount Rate 5.00% Loans Type Debt Term Amortization Rate Payment LO Costs Balloon $520,000 5 years 30 years 4.2% $2,543 $5,200 Income & Expenses Gross Operating Income $49,503 Monthly GOI $4,125 Total Annual Expenses $0 Contact Information John@CREfirm.com Jerad Rector 214-281-8616 Jerad@CREfirm.com The calculations and data presented are deemed to be accurate, but not guaranteed. They are intended for the purpose of illustrative projections and analysis. The information provided is not intended to replace or serve as substitute for any legal, accounting, investment, real estate, tax or other professional advice, consultation or service. The user of this software should consult with a professional in the respective legal, accounting, tax or other professional area before making any decisions. page 4 of 13
Property Description The Dolex Building is offered as a sale/leaseback with a new 5 year absolute net lease. The tenant will be responsible for all expenses including maintenance, repairs and replacements. The lease will be corporately guaranteed with annual rent escalations. Financial metrics show a cap rate of 7.62% with a year 1 Cash on Cash Return of over 13%. About Dolex: DolEx Dollar Express, Inc. is an international organization and a leader in the International Money Transfer industry with more than 530 proprietary retail stores and 1,800 retail agent partners. Dolex s earnings increased in 2015 by almost 10% over the prior year. The US, two industry leading brands, DolEx & Quisqueyana, serve their customers through two distinctive retail distribution channels in over 30 states, Puerto Rico and the US Virgin Islands. Their brand, Europhil, is a leader in money transfers from Spain. Both DolEx & Quisqueyana offer the same payer network and together they serve over 35 countries with more than 50,000 payout locations worldwide. They are the only company in the industry with a combination of a significantly large number of company owned branches and an extensive retail agent network which allows them to better serve their core customer. Dolex maintains a A+ rating with the Better Business Bureau. Offered at $650,000 page 5 of 13
Executive Summary ACQUISITION COSTS Purchase Price, Points and Closing Costs $665,200 Investment - Cash $145,200 First Loan $520,000 INVESTMENT INFORMATION Purchase Price $650,000 Price per Tenant $650,000 Price per Sq. Ft. $175.39 INCOME, EXPENSES & CASH FLOW Gross Scheduled Income $49,503 Total Vacancy and Credits $0 Operating Expenses $0 Net Operating Income $49,503 Debt Service ($30,515) Cash Flow Before Taxes $18,988 FINANCIAL INDICATORS Cash on Cash Return Before Taxes 13.08% Optimal Internal Rate of Return (yr 2) 26.40% Debt Coverage Ratio 1.62 Capitalization Rate 7.62% Gross Income / Square Feet $13.36 page 6 of 13
Cash Flow Analysis Description Year 1 Year 2 Year 3 Year 4 Year 5 GROSS SCHEDULED INCOME $49,503 $50,988 $52,518 $54,093 $55,716 Total Operating Expenses $0 $0 $0 $0 $0 NET OPERATING INCOME $49,503 $50,988 $52,518 $54,093 $55,716 Loan Payment ($30,515) ($30,515) ($30,515) ($30,515) ($30,515) NET CASH FLOW (b/t) $18,988 $20,473 $22,003 $23,578 $25,201 Cash On Cash Return b/t 13.08% 14.10% 15.15% 16.24% 17.36% Footnotes: b/t = before taxes;a/t = after taxes page 7 of 13
Financial Indicators Description Year 1 Year 2 Year 3 Year 4 Year 5 Gross Rent Multiplier 14.71 14.71 14.71 14.71 14.71 Capitalization Rate 7.62% 7.84% 8.08% 8.32% 8.57% Cash On Cash Return b/t 13.08% 14.10% 15.15% 16.24% 17.36% Cash On Cash Return a/t 13.08% 14.10% 15.15% 16.24% 17.36% Debt Coverage Ratio 1.62 1.67 1.72 1.77 1.83 Gross Income per Sq. Ft. $13.36 $13.76 $14.17 $14.60 $15.03 Expenses per Sq. Ft. $0.00 $0.00 $0.00 $0.00 $0.00 Net Income Multiplier 14.71 14.71 14.71 14.71 14.71 Operating Expense Ratio 0.00% 0.00% 0.00% 0.00% 0.00% Loan To Value Ratio 70.18% 66.90% 63.71% 60.59% 0.00% Footnotes: b/t = before taxes; a/t = after taxes page 8 of 13
Cumulative Analysis Description Year 1 Year 2 Year 3 Year 4 Year 5 Equity (appreciation) $78,400 $100,252 $122,759 $145,942 $169,820 Equity (loan reduction) $8,844 $18,066 $27,683 $37,712 $520,000 CASH FLOW (a/t) $18,988 $39,462 $61,464 $85,043 $110,244 Totals - To Date $106,232 $157,779 $211,907 $268,697 $800,065 Invested Capital ($145,200) ($145,200) ($145,200) ($145,200) ($145,200) ROIC - To Date 73.16% 108.66% 145.94% 185.05% 551.01% Footnotes: a/t = after taxes; ROIC = Return On Invested Capital page 9 of 13
Investment Return Analysis Description Year 1 Year 2 Year 3 Year 4 Year 5 Cash Flow - To Date $18,988 $39,462 $61,464 $85,043 $110,244 Net Resale Proceeds $162,201 $187,515 $213,834 $241,192 $269,801 Invested Capital ($145,200) ($145,200) ($145,200) ($145,200) ($145,200) Net Return on Investment $35,990 $81,777 $130,098 $181,035 $234,845 Internal Rate of Return 24.79% 26.40% 26.21% 25.70% 25.14% Modified IRR 24.79% 25.29% 24.21% 23.01% 21.90% NPV (cash flow + reversion) $31,222 $69,050 $105,990 $142,065 $177,300 PV (NOI + reversion) $692,300 $726,259 $759,571 $792,248 $824,304 Footnotes: a/t = after taxes; Modified IRR = Modified Internal Rate of Return; PV = Present Value; NPV = Net Present Value; NOI = Net Operating Income Reversion = Amount received from the resale; Net Return on Investment = Cash Flow (a/t To Date) + Net Proceeds from Resale - Invested Capital. page 10 of 13
Location Map page 11 of 13
Demographics Population Characteristic 1 Mile 3 Mile 5 Mile AGES 0-4 1,692 10,653 24,756 AGES 5-9 1,853 11,708 27,260 AGES 10-14 1,579 9,838 22,945 AGES 15-19 1,394 8,856 20,929 AGES 20-24 1,441 9,447 22,595 AGES 25-29 1,502 10,020 24,306 AGES 30-34 1,483 9,982 24,431 AGES 35-39 1,426 9,458 23,578 AGES 40-44 1,344 8,689 23,049 AGES 45-49 1,261 8,072 22,071 AGES 50-54 1,101 7,115 19,547 AGES 55-59 926 6,247 17,266 AGES 60-64 739 5,202 14,534 AGES 65-69 559 4,097 11,338 AGES 70-74 367 2,854 8,505 AGES 75-79 211 1,771 6,116 AGES 80-84 74 927 3,815 AGES 85+ 165 1,743 6,925 Race Characteristic 1 Mile 3 Mile 5 Mile Non Hispanic White 12,141 69,226 156,808 Population Black 287 17,221 80,634 Population Am In/AK Nat 36 222 562 Household Income 1 Mile 3 Mile 5 Mile Median Household Income $27,686 $29,746 $31,182 < $10000 728 5,322 13,819 $10000-$14999 656 3,715 9,603 $15000-$19999 678 3,626 8,783 $20000-$24999 439 3,208 7,937 $25000-$29999 637 2,925 7,130 $30000-$34999 370 2,949 7,528 $35000-$39999 456 2,323 5,583 $40000-$44999 231 1,924 4,756 $45000-$49999 254 1,894 4,633 $50000-$60000 339 2,681 7,921 $60000-$74000 451 3,053 8,062 $75000-$99999 269 2,893 8,399 $100000-$124999 102 1,238 4,273 $125000-$149999 97 613 2,271 $150000-$199999 20 540 2,212 > $200000 45 389 2,136 Characteristic Housing 1 Mile 3 Mile 5 Mile Housing Units 6,608 47,290 128,000 Occupied Housing Units 5,629 40,436 108,670 Owner Occupied Housing Units 2,271 17,895 49,237 Renter Occupied Housing Units 3,358 22,541 59,433 Vacant Housing Units 979 6,854 19,330 page 12 of 13
TYPES OF REAL ESTATE LICENSE HOLDERS: North Texas Commercial Association of Realtors INFORMATION ABOUT BROKERAGE SERVICES Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords. A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker. A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker. A BROKER S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): Put the interests of the client above all others, including the broker s own interests; Inform the client of any material information about the property or transaction received by the broker; Answer the client s questions and present any offer to or counter-offer from the client; and Treat all parties to a real estate transaction honestly and fairly. A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION: AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner's agent must perform the broker s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer s agent. AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer's agent must perform the broker s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by the seller or seller s agent. AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligations as an intermediary. A broker who acts as an intermediary: Must treat all parties to the transaction impartially and fairly; May, with the parties' written consent, appoint a different license holder associated with the broker to each party (owner and buyer) to communicate with, provide opinions and advice to, and carry out the instructions of each party to the transaction. Must not, unless specifically authorized in writing to do so by the party, disclose: that the owner will accept a price less than the written asking price; that the buyer/tenant will pay a price greater than the price submitted in a written offer; and any confidential information or any other information that a party specifically instructs the broker in writing not to disclose, unless required to do so by law. AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: The broker s duties and responsibilities to you, and your obligations under the representation agreement. Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated. LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker s services. Please acknowledge receipt of this notice below and retain a copy for your records Worldwide Commercial, PLLC Licensed Broker/Broker Firm Name or Primary Assumed Business Name 9001217 License No. info@crefirm.com Email 800-474-5068 Phone Designated Broker of Firm License No. Email Phone Licensed Supervisor of Sale Agent/Associate License No. Email Phone Sales Agent/Associates's Name License No. Email Phone 1996 NTCAR FORM 15 (1/96) PRODUCED WITH WINAIR FORMS Page 1