Home Depot Dallas, TX

Home , High Five Interchange, Interstate 35E (Texas), Interstate 635 (Texas)

LONG-TERM ABSOLUTE NNN ASSET With Assumable Financing 2800 Forest Lane, Dallas TX (map) Home Depot PROperty Summary Listing Team 2800 Forest Lane, Dallas TX (map) Contact Info

PRICE: $20,185,000 zEB rIPPLE [email protected] | (415) 274-2702 CAP: 5.45% CA BRE# 01002010 Chris Kostanecki Rentable SF...... 163,545 SF [email protected] | (415) 274-2701 Price per SF...... $123.42 CA BRE# 00869657 land area ...... 14.85 Acres Chris peters [email protected] | (415) 274-2703 annual Rent/ft...... $6.73 CA BRE# 01339983 Lease Expiration...... 1/31/2037 Assumable financing*. . . .$14,022,174 In Conjunction with TX Licensed Broker: Interest rate...... 4.25% Steve Sieling, Azur Commercial Capital, LLC [email protected] | (214) 888-8262 Loan maturity date. . . . . 5/31/2024 *This loan must be assumed at closing.

home depot | 2 core characteristics

FREESTANDING HOME DEPOT LOCATED IN A DOMINANT recent long-term extension demonstrates RETAIL AREA WITH DIRECT ACCESS FROM INTERSTATE 635 IN DALLAS, TX (AN INCOME TAX FREE STATE). tenant’s commitment to this location

LEASE HIGHLIGHTS EASILY ACCESSIBLE This absolute NNN lease is corporately guaranteed and has over 21 years The site features excellent ingress/egress from Forest Lane and is located remaining on the primary term. The lease features rent escalations throughout just off the Lyndon B Johnson Freeway. Combined traffic counts past the the primary term and in each option, providing for inflation protection in the site are currently greater than 300,000 cars per day. The Home Depot is future. 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). INVESTMENT HIGHLIGHTS Home Depot has a current S&P credit rating of “A”, with continued growth of INFILL RETAIL revenue and profit. The tenant recently extended the lease for an additional 20 The subject property is a truly infill site in Dallas proper and benefits from years, demonstrating a strong commitment to this location. excellent demographics. The population in a 5-mile radius is greater than 250,000 with average incomes in excess of $87,000. Ideally situated The subject property is being offered with attractive in-place financing that along Forest lane, a dense trail corridor, Home Depot benefits from close must be assumed, offsetting an investors risk due to recent instability in debt proximity to national retailers such as CVS, LA Fitness, Burlington Coat markets (see page 8 for details). 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 UNDERSTANDING FUTURE TRAFFIC FLOW

VALLEY VIEW VALLEY VIEW

JOE RATCLIFF WALKWAY

TI BLVD

GREENVILLE COIT

635 LUNA T T T

635 635

ONE WAY JOSEY FOREST MERIT ROSSER

REEDER T HARRY HINES DENTON FOREST CENTRAL PARK

CROWN T 75 DENNIS MARSH WELCH

635 MIDWAY

35E PRESTON HILLCREST

277,840 DAILY ROYAL ROYAL MONTFORT ROYAL WEBB CHAPEL EMERALD UNDERSTANDING FUTURE TRAFFIC FLOW DALLAS DALLAS NORTH TOLLWAY WALNUT HILL WALNUT HILL WALNUT HILL VALLEY VIEW VALLEY VIEW Recently Completed, Massive Interstate Project DTirectly Benefits Subject Property

JOE RATCLIFF WALKWAY

MANANA TI BLVD

GREENVILLE COIT

This Home Depot is visible from, andNORTHWEST is readily HWY accessible from Interstate 635. 635 LUNA T T T I 635 is a 37-mile-long partial loop around Dallas, known locally as the “LBJ.” Together with Spur 408, a portion 635 of Loop 12 (Walton Walker Freeway), and a portion of Interstate 35E, 635 completes the beltway which 635

ONE WAY JOSEY encircles Dallas. 12 NORTHWEST HWY FOREST NORTHWEST HWY 12 12 MERIT ROSSER

REEDER 12 T HARRY HINES DENTON FOREST CENTRAL PARK

I-635 was originally designated by the Texas Department of Transportation in 1959 as a loop around the CROWN T 75

STOREY DENNIS MARSH eastern side of Dallas, connecting with I-35E to the northwest and southwest sides of the city. WELCH MIDWAY

35E PRESTON HILLCREST

ROYAL ROYAL MONTFORT ROYAL WEBB CHAPEL A $2.7 billion project was started on May 16, 2011, to widen I-635 and dig subsequent high-occupancy toll EMERALD (HOT) lane tunnels beneath the primary roadway from I-35E to the High Five Interchange, a length of 17 miles. DALLAS DALLAS NORTH TOLLWAY TRAFFIC FLOW LEGEND WALNUT HILL WALNUT HILL WALNUT HILL Construction time was estimated in 2011 at five years and was completed and opened for traffic on September Express Toll Lanes T 10, 2015. MANANA Freeway Lanes NORTHWEST HWY The new freeway features tolled express lanes, known as TEXpress lanes, in between the main lanes or Frontage Road N underneath them. The completion of this major infrastructure upgrade directly benefits the subject property By-Pass in numerous ways, including improved traffic flow and better access on and off of I 635 at the adjacent access Toll Gantry 12 NORTHWEST HWY 12 12 NORTHWEST HWY ramps. Well in excess of 300,000 vehicles travel this roadway daily. Intersection 12

STOREY Note: Map not to scale. Final roadway schematics may vary slightly. home depot | 5 Updated September 2011. Based on anticipated roadway confi guration upon completion of the project in late 2015. Final roadway may vary slightly.

TRAFFIC FLOW LEGEND Express Toll Lanes

Freeway Lanes Frontage Road N By-Pass

Toll Gantry Intersection

Note: Map not to scale. Final roadway schematics may vary slightly.

Updated September 2011. Based on anticipated roadway confi guration upon completion of the project in late 2015. Final roadway may vary slightly. aerial

Located in Dense, In-fill Dallas Market with over 250,000 residents within a 5-mile radius

635 35E

Forest Lane 277,840 DAILY 16,870 DAILY

PARK FOREST

Dennis Road

Herbert Marcus Elementary 13,590 DAILY

Everett l . DeGolyer Elementary EXIT 440A FOREST LANE

Webb Chapel Road

Cromwell Drive

Royal Lane

35E DALLAS FP Caillet 35E Elementary CITY CENTER

home depot | 6 locationDallasDallas, TX Economy Economy FORTUNE 500 FORTUNE 100 COMPANY COMPANIES COMPANIES HEADQUARTERS

HEART OF THE “SILICON PRAIRIE” Dallas’s efficiency as a headquarters city is based on: 18 40 617 Transportation system with air operations to 145 US and 50 international cities Large metro and professional services CAREER OPPORTUNITIES workforce - 484,100 jobs Dallas job growth has exceeded the nation’s since 2003 and is forecasted Affordable cost of business to grow faster than the nation’s through 2020 Dallas’s unemployment rate has been below the national average for DALLAS-FORT WORTH INTERNATIONAL AIRPORT over 6 years Dallas is the 3rd most popular destination for business Dallas-Fort Worth’s job growth has been led by construction and travel in the US professional and business services DFW is the largest airport in Texas and the 2nd largest in the US 60,436,266 passengers went through DFW in 2013

COOLhom RIVERe d CAFEepot | 67 income & expense

PRICE $20,185,000 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 Loan Assumption/Cash Flow 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

Current Monthly Yearly Monthly Yearly Tenant Name Sq. Ft. Term Rent Rent Rent Rent/FT 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

home depot | 9 site plan 16,870 DAILY Forest Lane

Site Plan Key NOT A PART* Parcel outline: Land Area: 14.85 AC Building Area: 163,545 sf Ingress/Egress: G rissom L ane

*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

hOME dEPOT The Home Depot is an American retailer of home improvement, lawn and garden and construction products and services. They A are the largest home improvement retailer in the United States Investment Grade ahead of rival Lowe’s. Standard & Poor’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 www.homedepot.com 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 home depot | 11 demographics & maps

Outstanding 277,840 DAILY Population demographics 16,870 DAILY 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

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

39 min downtown 33 miles fort worth 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. fourth largest employment center The city had an estimated population of 1,281,047 in 2014. in the nation 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 Top Employers in dallas-Fort Worth MSA to become the fourth-largest employment center in the nation, with more than three Employer # of Employees* million non-farm jobs. The city’s economy is primarily based on banking, commerce, AMR Corporation 24,700 telecommunications, computer technology, energy, healthcare and medical research, and Bank of America Corp. 20,000 transportation and logistics. Texas Health Resources Inc. 19,230 The city is home to the third-largest concentration of Fortune 500 companies in the nation. Dallas ISD 18,314 In the latest rankings released in 2013, Dallas was rated as a “beta plus” world city by the *Approximate 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 home depot | 13 Dallas/Fort Worth International Airport, one of the largest and busiest airports in the world. A unique HUMAN The capital pacific experience - our daily commitment to our clients RESULTS-DRIVEN client experience [ www .capitalPacific .com ]

zEB rIPPLE Chris Kostanecki Chris peters [email protected] | (415) 274-2702 [email protected] | (415) 274-2701 [email protected] | (415) 274-2703 CA BRE# 01002010 CA BRE# 00869657 CA BRE# 01339983

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

efore working with a real estate broker, you intermediary. The written consent must state who will should know that the duties of a broker pay the broker and, in conspicuous bold or underlined depend on whom the broker represents. If print, set forth the broker’s obligations as an you are a prospective seller or landlord intermediary. The broker is required to treat each B (owner) or a prospective buyer or tenant (buyer), you party honestly and fairly and to comply with The

Texas Real Estate License Act. A broker who acts as should know that the broker who lists the property for sale or lease is the owner’s agent. A broker who acts an intermediary in a transaction: as a subagent represents the owner in cooperation (1) shall treat all parties honestly; with the listing broker. A broker who acts as a buyer’s agent represents the buyer. A broker may act as an (2) may not disclose that the owner will accept a intermediary between the parties if the parties price less that the asking price unless authorized in

consent in writing. A broker can assist you in locating writing to do so by the owner; a property, preparing a contract or lease, or obtaining (3) may not disclose that the buyer will pay a financing without representing you. A broker is price greater than the price submitted in a written offer obligated by law to treat you honestly. unless authorized in writing to do so by the buyer; and

IF THE BROKER REPRESENTS THE OWNER: (4) may not disclose any confidential information or The broker becomes the owner’s agent by entering any information that a party specifically instructs the into an agreement with the owner, usually through a broker in writing not to disclose unless authorized in written - listing agreement, or by agreeing to act as a writing to disclose the information or required to do so by subagent by accepting an offer of subagency from the The Texas Real Estate License Act or a court order or if listing broker. A subagent may work in a different real the information materially relates to the condition of the estate office. A listing broker or subagent can assist property. the buyer but does not represent the buyer and

must place the interests of the owner first. The buyer With the parties’ consent, a broker acting as an intermediary between the parties may appoint a person should not tell the owner’s agent anything the buyer who is licensed under The Texas Real Estate License would not want the owner to know because an owner’s agent must disclose to the owner any Act and associated with the broker to communicate material information known to the agent. with and carry out instructions of one party and another person who is licensed under that Act and

IF THE BROKER REPRESENTS THE BUYER: associated with the broker to communicate with and carry out instructions of the other party. The broker becomes the buyer’s agent by entering

into an agreement to represent the buyer, usually through a written buyer representation agreement. A If you choose to have a broker represent you, buyer’s agent can assist the owner but does not you should enter into a written agreement with the represent the owner and must place the interests of broker that clearly establishes the broker’s obligations and your obligations. The agreement should state the buyer first. The owner should not tell a buyer’s agent anything the owner would not want the buyer how and by whom the broker will be paid. You have the right to choose the type of representation, if any, to know because a buyer’s agent must disclose to the buyer any material information known to the agent. you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker IF THE BROKER ACTS AS AN INTERMEDIARY: represents you. If you have any questions regarding

A broker may act as an intermediary between the the duties and responsibilities of the broker, you should resolve those questions before proceeding. 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

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