Corner Bakery Cafe | Sprint
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OFFERING MEMORANDUM CBRE CAPITAL MARKETS CORNER BAKERY CAFE | SPRINT 1410 PRECINCT LINE RD | HURST, TX 76053 CORNER BAKERY CAFE | SPRINT 1410 PRECINCT LINE RD | HURST, TX 76053 OFFERING SUMMARY $ % Offering Price: Cap Rate: $3,962,000 5.90% NET OPERATING INCOME $233,768 PRICE PER SQ FT $713.26 GROSS LEASABLE AREA 5,555 SF OCCUPANCY 100.00% LAND AREA .97 ACRES YEAR BUILT 2017 EXCLUSIVE MARKETING ADVISORS: JARED AUBREY MICHAEL AUSTRY SENIOR VICE PRESIDENT VICE PRESIDENT +1 214 252 1031 +1 214 252 1115 [email protected] [email protected] 2 CORNER BAKERY CAFE | SPRINT 1410 PRECINCT LINE RD | HURST, TX 76053 INVESTMENT HIGHLIGHTS + New 2017 Construction, Shadow Anchored by Target - Beautiful high-quality facade and buildout + 100% Occupied with New Corporate Long-Term Leases – All leases have remaining terms of 10 years each with both tenants now open + Triple Net Leases – Allow an investor to have limited landlord responsibilities and ease of management + Located in Affluent Dallas|Fort Worth Suburb - Average household income is over $92,669, well above the national average + Huge Traffic Counts, Located Just Off Hwy 183 - Over 188,429 VPD on Hwy 183 and over 23,000 VPD on Precinct Line Road + Strategically Situated within the DFW metroplex - Located approximately 20 minutes northeast of downtown Fort Worth and 30 minutes west of Downtown Dallas + Densely Populated Submarket - Currently over 439,334 in a 7-mile radius + Dense Retail Corridor – Surrounding retailers include Target, Starbucks, Pei Wei, AT&T, Wells Fargo, McDonald’s, Potbelly Sandwich Shop, Slim Chickens, Outback Steakhouse, Brident Dental, In-N-Out Burger, and many more + Texas has NO State Income Tax 3 CORNER BAKERY CAFE | SPRINT 1410 PRECINCT LINE RD | HURST, TX 76053 TENANT ROSTER LEASE LEASE ANNUAL BASE LEASE TENANTS SF GLA % COMMENCEMENT EXPIRATION RENT TOTAL TYPE CORNER BAKERY CAFE 3,305 59.50% FEBRUARY 2018 FEBRUARY 2028 $143,768 NNN SPRINT 2,250 40.50% DECEMBER 2017 NOVEMBER 2027 $90,000 NNN TOTAL OCCUPIED 5,555 100.00% $233,768 4 CORNER BAKERY CAFE | SPRINT 1410 PRECINCT LINE RD | HURST, TX 76053 PROPERTY AERIAL | 2 MILE VIEW 5 CORNER BAKERY CAFE | SPRINT 1410 PRECINCT LINE RD | HURST, TX 76053 PROPERTY AERIAL | .5 MILE VIEW 6 CORNER BAKERY CAFE | SPRINT 1410 PRECINCT LINE RD | HURST, TX 76053 HOUSING STUDY | 5 MILE VIEW 7 CORNER BAKERY CAFE | SPRINT 1410 PRECINCT LINE RD | HURST, TX 76053 PROPERTY OBLIQUE AERIAL | NORTHEAST VIEW 8 CORNER BAKERY CAFE | SPRINT 1410 PRECINCT LINE RD | HURST, TX 76053 PROPERTY OBLIQUE AERIAL | NORTH VIEW 9 CORNER BAKERY CAFE | SPRINT 1410 PRECINCT LINE RD | HURST, TX 76053 SURROUNDING RETAIL 10 CORNER BAKERY CAFE | SPRINT 1410 PRECINCT LINE RD | HURST, TX 76053 TENANT INFORMATION Corner Bakery Cafe is an American cafe that specializes in TYPE Private pastries, breads, breakfast dishes, gourmet sandwiches, YEARS IN BUSINESS 26 homemade soups, salads, and pasta. The menu offers ingredient-inspired, prepared-to-order food. Each cafe NO. OF LOCATIONS 192 features real kitchens in lieu of assembly lines and hear the chopping of over 40 types of fresh herbs, fruits, and HEADQUARTERS Dallas, TX vegetables, and the sizzle of a real panini grill. Guests can see the open flame and feel the warmth of the ovens working all WEBSITE www.cornerbakerycafe.com day long. These are traditions established years ago and are still passionately followed today. SQUARE FOOTAGE 3,305 SF % OF CENTER 59.50% Sprint is an American telecommunications company that TYPE Public provides wireless services and is an internet service provider. YEARS IN BUSINESS 118 Sprint is the fourth largest mobile network provider in the US and serves 54 million customers. The company also offers NO. OF LOCATIONS 4,500+ wireless voice, messaging, and broadband services through various subsidiaries. HEADQUARTERS Overland Park, KS WEBSITE www.sprint.com SQUARE FOOTAGE 2,250 SF % OF CENTER 40.50% 11 CORNER BAKERY CAFE | SPRINT 1410 PRECINCT LINE RD | HURST, TX 76053 IN-PLACE NOI & PRICING SUMMARY In-Place NOI Mar-18 to Feb-19 $ PSF Size of Improvements 5,555 SF Assumptions: Commencement Date Mar 1, 2018 In-Place Occupancy 100.00% Operating Expense Source Estimated REVENUES Real Estate Taxes Reassessed No Scheduled Base Rent $233,768 $42.08 CAM Reimbursement 17,418 3.14 Notes: INS Reimbursement 11,277 2.03 Operating Expenses: RET Reimbursement 30,147 5.43 a) CY2018 Operating Expenses are estimated at the following rates per the EFFECTIVE GROSS REVENUE 292,610 52.68 seller's budget: Common Area Maintenance of $3.12 PSF, Management Fee of OPERATING EXPENSES 3% of EGR, Insurance of $2.02 PSF, and Real Estate Taxes of $5.40 PSF. Common Area Maintenance (17,418) (3.14) Analysis assumes 3% annual inflation beginning in CY2019. Insurance (11,277) (2.03) b) Analysis does not factor in the Texas Margin Tax and assumes a buyer will Real Estate Taxes (30,147) (5.43) consult with their tax advisor to evaluate their exposure to this expense. TOTAL OPERATING EXPENSES (58,842) (10.59) NET OPERATING INCOME $233,768 $42.08 Investment Summary: Capitalization Rate 5.90% Annual Debt Service (156,591) (28.19) Leveraged Cash on Cash Return [1] 5.46% CASH FLOW AFTER DEBT $77,177 $13.89 Debt Service Coverage Ratio (NOI) 1.49x Loan Constant 6.08% PURCHASE PRICE AS OF MARCH 1, 2018 $3,962,169 $713.26 Weighted Average Remaining Lease Term (in Years) 9.90 Loan Funding (2,575,410) (463.62) Origination Fee 25,754 4.64 [1] Market Debt based on 65% Loan-to-Value, 4.50% Interest Rate, 30-Year INITIAL EQUITY $1,412,513 $254.28 Amortization, and a 1.00% Loan Fee. 12 CORNER BAKERY CAFE | SPRINT 1410 PRECINCT LINE RD | HURST, TX 76053 EXISTING LEASE EXPIRATIONS Suite Tenant End 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Thereafter Available 200 Sprint Spectrum Nov-27 2,250 100 Corner Bakery Cafe Feb-28 3,305 Totals: 0 0 0 0 0 0 0 0 0 2,250 3,305 0 Percent: 0% 0% 0% 0% 0% 0% 0% 0% 0% 41% 59% 0% Count: 0 0 0 0 0 0 0 0 0 1 1 0 Cumulative SF: 0 0 0 0 0 0 0 0 0 2,250 5,555 5,555 Cumulative %: 0% 0% 0% 0% 0% 0% 0% 0% 0% 41% 100% 100% Summary of Lease Expirations 100.00% Year Leases SF Percent Cumu. SF Cumu. % 90.00% 2018 0 0 0% 0 0% 80.00% 2019 0 0 0% 0 0% 70.00% 60.00% 2020 0 0 0% 0 0% 50.00% 2021 0 0 0% 0 0% 40.00% 2022 0 0 0% 0 0% 30.00% 2023 0 0 0% 0 0% 20.00% 2024 0 0 0% 0 0% 10.00% 2025 0 0 0% 0 0% 0.00% 2026 0 0 0% 0 0% 2018 2019 2021 2020 2022 2023 2025 2024 2027 2026 2027 1 2,250 41% 2,250 41% Available Thereafter Thereafter 1 3,305 59% 5,555 100% Annual Cumulative Available 0 0 0% 5,555 100% 13 CORNER BAKERY CAFE | SPRINT 1410 PRECINCT LINE RD | HURST, TX 76053 RENT ROLL AS OF 3/1/2018 Square % of Lease Term Rental Rates Recovery Suite Tenant Name Feet Property Begin End Begin Monthly Annually PSF Type Comments/Options 100 Corner Bakery Cafe 3,305 59.50% Feb-2018 Feb-2028 Current $11,981 $143,768 $43.50 NNN (+10% Analysis assumes tenant's rent Mar-2023 $13,179 $158,144 $47.85 Admin Fee) commencement date will be 02/25/18. Four 5 year renewal options @ annual rates of $52.64, $57.90, $63.69, and $70.06. 5% cap on prior year CAM excluding SEC, TRSH, SNOW, UTIL, INS, and RET. 200 Sprint Spectrum 2,250 40.50% Dec-2017 Nov-2027 Current $7,500 $90,000 $40.00 NNN (+10% Analysis assumes tenant's rent Dec-2022 $8,250 $99,000 $44.00 Admin Fee) commencement date will be 12/01/17. Two 5 year renewal options @ $48.40 /sf/yr and $53.24 /sf/yr. 8% cumulative cap on CAM excluding TRSH, SNOW, UTIL, INS, and RET. TOTALS / AVERAGES 5,555 $19,481 $233,768 $42.08 OCCUPIED SqFt 5,555 100.0% VACANT SqFt 0 0.0% TOTAL SqFt 5,555 100.0% 14 CORNER BAKERY CAFE | SPRINT 1410 PRECINCT LINE RD | HURST, TX 76053 SITE DEMOGRAPHICS DAYTIME POPULATION HOUSEHOLDS 1 MI 15,399 4,679 1 MI 3 MI 101,685 43,514 3 MI 5 MI 231,872 97,226 5 MI 7 MI 439,334 197,139 7 MI 0 100,000 200,000 300,000 400,000 200,000 150,000 100,000 50,000 0 AVERAGE HOUSEHOLD INCOME TRAFFIC COUNTS (2016) 1 MI $64,322 188,429 HWY 183 (AIRPORT FRWY) 3 MI $79,750 28,960 PRECINCT LINE RD 5 MI $88,143 15,210 BEDFORD EULESS RD 200,000 150,000 100,000 50,000 0 7 MI $92,669 0 25,000 50,000 75,000 100,000 15 CORNER BAKERY CAFE | SPRINT 1410 PRECINCT LINE RD | HURST, TX 76053 WHY DALLAS/FORT WORTH? The Dallas/Fort Worth Metroplex (DFW) is a dynamic 12-county region made up of Dallas, Fort Worth, and another 150 municipalities. The DFW Metroplex is the largest urban agglomeration in Texas and the fourth largest in the United States spanning an area of 9,286 square miles with a population of approximately 6.9 million people. As the fourth fastest growing region in the United States, the DFW population in 2016 is 33.6% higher than in 2000 according to data from Nielsen Claritas; by the year 2030, it is projected that over 10.5 million people will be living in the Metroplex according to the Dallas Regional Chamber.