11.31 AC DEVELOPMENT RAW LAND OFFERING OPPORTUNITY MEMORANDUM IN FRISCO, TX HOME OF THE DALLAS COWBOYS
FOR MORE INFORMATION: EVA HORTON Managing Director T 713.599.5188 [email protected] TABLE OF CONTENTS
I EXECUTIVE SUMMARY 3 - 4
II PROPERTY OVERVIEW 5 - 8
III MARKET OVERVIEW 9 - 14
OFFERING MEMORANDUM
EVA HORTON Managing Director T 713.599.5188 [email protected]
We obtained the information in this offering package from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction. 2 INVESTMENT SUMMARY
Interest Offered: 100% Fee Simple
Offering Price: Contact Broker
Seller and Agent will assess the qualification of any party submitting a non-binding letter of intent in accordance with Seller’s objectives. In Offer Submission making this assessment, Seller will consider a number of factors Procedure: including, but not limited to, price, time frame of closing, and perceived ability of the party to complete the transaction.
All submissions must be faxed, emailed or hard copy delivered. Offer SW Corner of Parkwood Blvd and Ikea Drive Property Location: Frisco, TX should be submitted in the form of a non-binding letter of intent and should specify the following: Legal Description: ABS A0279 J ABEZ DEGMAN SURVEY, TRACT 30 Offering Price Property Size: 492,664 SF Due Diligence Period Site Size: 11.31 AC Closing 2594740: 8.49 AC Property ID: Bid Deadline: Earnest Money Deposit 2594741: 2.82 AC Contingencies (if any) R -6279-000-0300-1: 8.49 AC Parcel Number: References R -6279-000-0310-1: 2.82 AC Documentation of previously completed transactions Property Type: Raw Land Sources of funds Zoning: PD-25 (Planned Development Business Center) Any other information having a direct bearing on investor’s ability to Comprehensive Plan: Suburban Regional Activity Center (SRAC) close the proposed transaction PD Information: Part of Frisco Bridges – Network Node Overlay District Frisco Bridge/Stonebriar Design District
SUP SUP000
17-08-57 EVA HORTON Ordinance Managing Director 88-03-05 Broker Contact: T 713.599.5188 Overlay District Network Node Design Overlay District [email protected]
Sub District Frisco Bridge/Stonebriar Design District
3 EXECUTIVE SUMMARY
Newmark Knight Frank’s Capital Market and Investment Sales team, as exclusive agent, is pleased to offer investors the rare opportunity to purchase 2 adjoining parcels of undeveloped commercial land, totaling 11.30 Acres of raw land in Frisco, Texas. The site is located in one of the fastest growing cities in Texas in a premier retail corridor popularly known as the “North Platinum Corridor.”
INVESTMENT HIGHLIGHTS . 2 land parcels consisting of 11.31 AC (492,228 SF) vacant, undeveloped commercial land.
. Situated at the hard southwest corner of Parkwood Blvd and Ikea Drive directly across from Stonebriar Centre.
. Parkwood Blvd is the main thoroughfare leading south to Granite Park (Headquarter Drive) and Legacy Town Center.
. Outstanding location with high visibility off of high-trafficked major thoroughfares Parkwood Blvd, Hwy 121, and Dallas North Tollway/Dallas Pkwy, with convenient access to/from both streets as well as Ikea Drive.
. Located within Frisco/The Colony Submarket’s premiere retail corridor that features a diversified commercial market with high profile retail multi-tenanted developments, single-tenant NNN retailers, national hotel establishments, and sporting venues The Star and Dr. Pepper Ballpark.
. Positioned within Frisco’s “North Platinum Corridor,” one of the most dynamic development concentrations in the country boasting over $5 billion in recently completed, under construction or announced developments along the Dallas North Tollway from Hwy 121 to US 380.
. Close proximity to iconic North Dallas developments Stonebriar Centre and The Star, the World Corporate Headquarters and multi-use event center for the Dallas Cowboys, as well as high quality national credit tenants Rooms to Go, Ashley HomeStore, la Madeleine French Bakery & Café, Ethan Allen, and many more...
. Prime retail enclave, with over 5.6 million SF of existing retail within a mile.
. Positioned in strong and growing commercial submarket that features strong market rates and continuing development.
. Location near dense residential communities and development with population figures reaching nearly 304,666 people within a 5-mile radius of the Subject Property.
. Surrounding area is also characterized by residential pockets and multi-family housing complexes.
. Hyatt Regency Frisco set to open in 2020 are within a mile of the Subject Property, as well as a 220,000 SF class A office known as Legacy Town Center – Headquarters II.
4 PROPERTY OVERVIEW
PARCEL MAP
5 PROPERTY OVERVIEW
ZONING MAP Overlay Districts: Frisco Bridge/Stonebriar Design District District: Network Node Overlay District Sub-District: Frisco Bridge/Stonebriar Design District
Overlay Districts: 5B Mile Design District District: Network Node Overlay District Sub-District: 5B Mile Design District
Overlay Districts: City Centre Design District District: Network Node Overlay District Sub-District: City Center Design District
Overlay Districts: Frisco North Design District District: Network Node Overlay District Sub-District: Frisco/North Design District
6 AMENITY AERIAL
IMMEDIATE SURROUNDING AREA NORTH
Premier Work Nexius Comerica Center Spaces Solutions
UNT at Steakhouse Frisco Dr. Pepper AMLI Frisco Wildpitch Bar Crossing Ballpark AMLI at The and Grill Ballpark Hyatt Regency Under Construction Stonebriar Centre (2020)
Parking Lot Sunnyland Outdoor Living
Modani Furniture Frisco
7 AMENITY AERIAL
AREA OVERVIEW SOUTH
Legacy Town Center
Stonebriar Centre Granite Park Legacy West Development
Dr Pepper Ballpark Frisco Convention Dr Pepper Arena
Center FriscoBridges
Hall Office Park
The Centre at Preston Ridge Duke Bridges III The Star in Frisco $1 billion | 91 Acres (Under Construction)
8 MARKET OVERVIEW
FRISCO, TX Located approximately 30 miles north of Dallas, the city of Frisco lays on the Collin and Denton counties. The bedroom community has been ranked one of the fastest-growing cities in Texas, due to a low cost of living and proximity to high wage jobs within the Dallas-Fort Worth Metroplex. Population in the city is estimated to be approximately 192,825 with 64,310 households. The population is expected to see above average growth in the coming five-year period, with projections of 3.76% growth well above the U.S. projected 0.77%. The population within Frisco is well educated with approximately 61.1% of population 25 year and older with a bachelor’s degree or a graduate/professional degree. Major highways in the city include SH 289 and US 380 making for ease in transportation of logistics and workers into and out of the metroplex area. In 2017, The Dallas Cowboys opened their corporate headquarters and practice facility at The Ford Center at The Star, a 91 AC campus with office space and over 30 shops and restaurants. Known as “The Star District,” this popular site has attracted numerous families that want to experience a Dallas Cowboys themed campus. Due to Frisco’s strong diversified local economy, destination retail, entertainment, professional sports teams and recreation activity make Frisco an ideal city to do business.
COLLIN COUNTY, TX Founded in 1846, Collin County is named after Texas historical figure Collin McKinney. The Population in the county is estimated to be 939,600 making the county the seventh-most populous county in Texas. The economy within the county is primarily specialized in management, information and financial and insurance services. The county seat of Collin is McKinney, with other major cities including Plano, Fairview, and Frisco.
9 MARKET OVERVIEW
LOCATION HIGHLIGHTS
FRISCO ECONOMY OVERVIEW Given the high educational attainment that the majority of Frisco’s population holds, the dominant industries MAJOR EMPLOYERS in the city are high-skill oriented industries such as Healthcare, Professional/Scientific/Tech Services and Frisco ISD 6,190 Finance/Insurance. The result of this agglomeration of a high-skilled workforce within the market has resulted in a high-earning demographic with an average household income estimated to be $152,978. The T-Mobile 1500 major employers in the city include: The Frisco Independent School District, T-Mobile, Amerisource, Conifer Amerisource 1,100 Health Solutions and Baylor Medical Center to name a few. A potential driver of economic growth in the city is the announcement of autonomous vehicle ride-sharing pilot Drive.ai in the Frisco area. The six-month pilot City of Frisco 1,100 willSTRENGTHSprovide transportation•to Lowpassengersemploymentwithinvolatilitya geofencedcomparedarea inwiththe citymoreandoilcould-reliantattracteconomiesfuture testingin Conifer Health Solutions 800 Texas and tech investment to the area. Baylor Medical Center 650 • Below-average business and living costs Mario Sinacola & Sons 600 • Improving migration patterns FRISCO/THE COLONY SUBMARKET OVERVIEW Centennial Medical Center 500 Oracle Corporation 500 TheWEAKNESSESoffice market within Frisco• Lowcurrentlyeducationalholdsattainmentapproximatelydespite8.3 BaylormillionUniversitysquare feet (SF) of inventory space, with 1.1 million square feet of vacant space. Vacancy within the market over the past three years has Collin College 450 • Aviation industry is struggling fluctuated between 12-17% and as of the third quarter was 13.8%. Leasing activity in the market increased in IKEA Frisco 400 the second quarter to 131 •KSF,Belowwhile-averageabsorptionper capitawas downincome3.14% at negative 52 KSF. Rental rates have been healthy and seen some growth resting at $32.70/SF full service gross. Currently there is 553,624 SF of space Randstadt Technologies 300 • Below-average concentration of prime working-age adults under construction with 210 KSF new spec development expected to deliver by year end at Frisco Station. Kenexa 300 Railhead Tower is also expected to deliver by late 2019, adding 250,000 SF of spec space, including a multi- Fiserv 300 family component, to the Frisco market. Recently, Keurig Dr Pepper relocated its headquarters from West Plano to The Star campus, where the company will occupy 350,000 SF of space. HCL Technologies 300 Market Street 300 The retail market in Frisco currently holds 9.4 MSF of inventory space with 426 KSF of vacant space. Retail has seen healthy activity with a roughly 20% increase in inventory since 2010. The submarket has 198 KSF currently under construction, with 226 KSF in deliveries over the last 12-month period. Currently, vacancy runs at 4.5%, the same as the market average. Absorption has decreased slightly but remains positive at 171 KSF. Rental rates remain strong at $32.17/SF triple net, well above the market average of $19.92/SF. The submarket has 198 KSF currently under construction, with 226 KSF in deliveries over the last 12-month period. There are currently plans for a mixed-use development in Far North Frisco on 2,544 acres which has the potential to shape the city’s retail market.
10 FRISCO’S CORRIDOR DESIGNINGFRISCO’S NORTH PLATINUM PLATINUM NORTH CORRIDOR
11 FRISCO’S CORRIDOR
“ It’s (mixed-use development) very instrumental, in my mind, to attract companies today. You’re not in the middle of nowhere. You’re next to amenities, not only restaurants and retail and healthcare, but also availability of housing – all kind of housing. ”
Fehmi Karahan, The Karahan Companies, co- master development for 2.554-acres along DNT in Frisco; Legacy West Developer
These communities not only offer the “ ‘live,work,play’ environment that attracts today top talent, they also create value for surrounding homeowners and businesses by increasing property values, promoting walkability and offering new retail, entertainment and restaurant destinations. ” DESIGNINGFRISCO’S
Craig Hall, developer, Hall Park
These (mixed-use) types of developments “ bring a lot of great value to the City of Frisco. It’s a high taxable value, which reduces the tax burden on our residents. But it’s also what a lot of these large employers are truly looking for. We have a NORTH PLATINUM PLATINUM NORTH CORRIDOR strategic focus to attract Fortune 100 companies, entrepreneurs, and many high paying jobs. ”
Mayor Jeff Cheney, City of Frisco
Impact of residential uses/ property tax values on Frisco Independent School District
Total Students
Tax dollars to FISD per student
SOURCE: FISD
12 MARKET OVERVIEW
AREA DEMOGRAPHICS
5 Mi 3 Mi 1 Mi
DEMOGRAPHIC SUMMARY 1-Mile 3-Mile 5-Mile 2019 Total Population 6,842 104,046 304,666
2024 Total Population Projection 8,598 121,588 344,765
Population Growth 2019-2024 4.67% 3.17% 2.50%
2019 Households 4,368 41,394 114,667
2024 Households Projection 5,477 48,450 129,935
2019 Median Household Income $76,625 $106,704 $108,590
2019 Average Household Income $99,488 $140,217 $142,193
13 MARKET OVERVIEW Avenue Stars the of Avenue
TRAFFIC COUNT MAP
#8 DallasTollway North
#6 #5 #4
#2
#7 #1
#3 121
Site Street / Cross Street Avg. Daily Volume Site Street / Cross Street Avg. Daily Volume
#1 Parkwood Dr / State Hwy 121 17,133 #5 Mall Road D / Mall Ring Rd 4,196
#2 Ikea Dr / Ave of the Stars 1,264 #6 Mall Road D / Ave of the Stars 2,270
#3 State Hwy 121 / Granite Pky 74,000 #7 State Hwy 121 / Mall Road C 18,368
#4 Parkwood Dr / Mall Road D 16,608 #8 Ave of the Stars / Hicks Blvd 1,453
14 North America Latin America Africa HOUSTON Canada Argentina Botswana 1700 Post Oak Blvd. United States Brazil Kenya 2 BLVD Place, Suite 250 Chile Malawi Houston, TX 77056 Europe Colombia Nigeria 713.626.8888 Austria Costa Rica South Africa Belgium Dominican Republic Tanzania Czech Republic Mexico Uganda EVA HORTON France Peru Zambia Managing Director Germany Puerto Rico Zimbabwe T 713.599.5188 Ireland [email protected] Italy Asia-Pacific Middle East Netherlands Australia Saudi Arabia Poland Cambodia United Arab Emirates Portugal China Romania Hong Kong Russia India Spain Indonesia Switzerland Japan United Kingdom Malaysia New Zealand Philippines Singapore South Korea Taiwan Thailand 11-2-2015 Information About Brokerage Services Texas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.
TYPES OF REAL ESTATE LICENSE HOLDERS: . 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 buyerof 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 (ownerd an 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: ᴑ that the owner will accept a price less than the written asking price; ᴑ that the buyer/tenant will pay a price greater than the price submitted in a written offer; and ᴑ any confidential information or any other information that a party specifically instructs the broker in writing notto 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.
Licensed Broker /Broker Firm Name or License No. Email Phone Primary Assumed Business Name
Designated Broker of Firm License No. Email Phone
Licensed Supervisor of Sales Agent/ License No. Email Phone Associate
Sales Agent/Associate’s Name License No. Email Phone
Buyer/Tenant/Seller/Landlord Initials Date
Regulated by the Texas Real Estate Commission Information available at www.trec.texas.gov IABS 1-0