5110 Bryan St Dallas, Tx 75206 1 5108-5110 Bryan St
OFFERING MEMORANDUM
5108-5110 BRYAN ST DALLAS, TX 75206 1 5108-5110 BRYAN ST
DALLAS, TX
LISTED BY
NICK DELL Associate - Multifamily [email protected] PROPERTY direct (214) 932-9155 OVERVIEW mobile (214) 232-1532 01 Lic # 676985 (TX)
AREA 02 OVERVIEW DAVID HARRINGTON EVP & National Director - Multifamily [email protected] FINANCIAL direct (310) 295-1170 03 OVERVIEW mobile (310) 497-5590 Lic # 01320460 (CA)
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3 01 SECTION PROPERTY OVERVIEW PROPERTY DESCRIPTION
• 5108-5110 Bryan Street are two buildings comprised of 32 units built in the 1950’s • All efficiency style units with bathrooms • Parking is available in the front and rear of the property with alley access • There is a beautiful courtyard in between both properties where tenants can converse and relax • Both buildings sit on a total of 15,450 square feet of land Number of Units: 32 Year Built: 1950/1955 Gross Sq. Ft.: ±9,120 SF OPPORTUNITY
Average S.F. Per Unit: 285 5108-5110 Bryan Street is a phenomenal value-add opportunity in one of Dallas’ most desirable submarkets. These two assets that sit adjacent to one another, are primed for Lot Size (Acres): ±0.35 AC redevelopment, and through extensive renovations, will attract quality tenants at market rental rates. This is the perfect investment for a hands-on investor looking to transform these Density: 91 buildings into the areas most desirable apartments to rent. 5108-5110 Bryan Street are located in the heart of East Dallas, just south of Knox- Henderson and Lower Greenville directly across from Garrett Park. Knox-Henderson and Lower Greenville are two of Dallas’ most popular areas to live and enjoy nightlife. Garrett Park offers amenities including basketball & tennis courts, walking trails, soccer field, picnic area and a playground. The Munger Place Church, which is located right down the street, has been the backbone for the immediate area since 1913. The immediate location of these assets allows a new owner to capitalize on very attractive rents.
3 3 02 SECTION AREA OVERVIEW POINTS OF INTEREST
White Rock Lake White Rock Lake is a 1,015-acre city lake located approximately 5 miles northeast of DALLAS, TX downtown Dallas. White Rock is one of the most heavily used parks in the Dallas Park system and is the location of many special events and runs. White Rock Dallas is a city where big ideas meet big opportunity. The city Lake offers a variety of active and passive activity options and is one of the best revolves around a bustling downtown area that expands through an places to experience natural areas and wildlife in an urban setting. assortment of neighborhoods and commercial centers, supported by a network of freeways that exceeds almost any other city. It boasts the largest urban arts district in the nation; where you’d be more likely to come across a world-class exhibit than a broken pair Dallas Arboretum and Botanical Garden of chaps. Its past and present is rich in culture, an All-American city The Dallas Arboretum, one of the most beautiful outdoor attractions in Dallas, that was built on legends. features 66-acres of spectacular display gardens that showcase incredible seasonal flowers, ornamental shrubs, trees and plant collections in a serene The central core of Dallas has experienced a steady and setting on White Rock Lake. significant growth that speaks to its highly diversified economy. It has become a hub for real estate and business, establishing itself as one of the largest concentrations of corporate headquarters for publicly Granada Theatre traded companies such as American Airlines, Neiman Marcus, The Granada Theater, a Dallas staple, has been entertaining audiences of all Kimberly-Clark, JCPenney, ExxonMobil and many others. In ages from North Texas and beyond since 1946. Located in the historic Lower 2015, Forbes reported that Dallas is “the best place for business Greenville neighborhood, it was originally built as a post-WWII movie theater. and careers” in Texas. It’s the perfect blend of big city living and After periods of neglect and different rustic southern charm. ownership, it re-opened in 2004 under current owners Mike Schoder and Julia Garton. Since then it has amassed several awards along the way including “Best The Dallas economy is expected to grow over the next couple of Live Music Venue” (Dallas Observer 2007-11, 2015). decades making it the perfect time to not only invest in Dallas real estate but also relocate. As the 9th largest city in the country, Dallas has something for everyone. It combines clashing images of Katy Trail the city skyline and cowboy vibes. Yet, the city of Dallas describes The Katy Trail in Dallas is a premier urban trail, linking the business district with itself best with the motto: “Big Things Happen Here.” recreational opportunities, shopping, and residential neighborhoods. The corridor is the perfect non-motorized route for families to commute between home and work or school, as well as to recreation and entertainment venues. In addition to its paved surface, the 3.5-mile route includes an adjacent soft-surface track for runners and walkers. The pathway runs between Dallas’ West End and the American Airlines Center arena, traversing the city’s urban core past Knox Street, Southern Methodist University, and the Mockingbird DART Station. 4 4 DALLAS-FT WORTH MSA DEMOGRAPHICS The Dallas-Fort Worth Metroplex is the largest metropolitan area in the South, and fourth POPULATION 1-MILE 3-MILE 5-MILE largest in the United States. It is a center for sporting events, tourism, and manufacturing. 2010 Census 31,113 158,262 346,950 Dallas and its suburbs have one of the highest concentrations of corporate headquarters in 2018 Estimate 33,240 181,045 386,781 the United States. Dallas is a center for corporate America. Because of its central location 2023 Projection 34,989 193,553 410,246 relative to the rest of the United States, Dallas is a popular convention site and site for many Percent Change: 2010 to 2018 6.84% 14.40% 11.48% corporate headquarters and home to 21 Fortune 500 companies. Business management Percent Change: 2018 to 2023 5.26% 6.91% 6.07% and operations is a major part of the economy. The Metroplex also contains the largest Information Technology industry base in the state. On the other end of the business HOUSEHOLDS 1-MILE 3-MILE 5-MILE spectrum, and on the other side of the Metroplex, the Texas farming and ranching industry is 2010 Census 13,383 76,535 150,332 based in Fort Worth. 2018 Estimate 14,582 90,192 170,630 2023 Projection 15,491 97,315 182,269 Percent Change: 2010 to 2018 8.96% 17.84% 13.50% Percent Change: 2018 to 2023 6.23% 7.90% 6.82%
INCOME 1-MILE 3-MILE 5-MILE 2017 Average $78,296 $119,429 $110,611 Household Income 2017 Median $48,747 $75,345 $65,748 Household Income
5 EAST DALLAS KNOX/HENDERSON
East Dallas, also referred to as the Lake & Garden District, is an expansive area of numerous communities and Nestled between Uptown, Lower Greenville Avenue and the town of Highland Park, lies the trendy Knox- neighborhoods in Dallas, Texas. White Rock Lake, located in the center of East Dallas, is considered “the crown Henderson neighborhood, a pedestrian-friendly area named for the two primary roads that connect over U.S. jewel of the Dallas parks system”. The lake, along with the Dallas Arboretum and Botanical Garden located on the Highway 75. Filled with shops, bars, and eateries that radiate out in all directions, the neighborhood manages to east side of the lake, has strongly influenced and shaped the identity of the East Dallas area. maintain a cozy vibe despite its central Dallas location. A survey conducted by the Congress for the New Urbanism found that 68 percent of Dallas residents want to live East Dallas’ popular Henderson Avenue corridor is headed for a major makeover with a new mixed-use project. in walkable neighborhoods with clusters of stores and other amenities reachable by foot—but only 4 percent of the Investors and developers who almost four years ago bought up more than two dozen properties along the avenue metro area’s geography qualifies. between U.S. Highway 75 and Ross Avenue are ready to build on the largest vacant tract on the thoroughfare.
LOWER GREENVILLE LAKEWOOD
Lower Greenville is a major entertainment district in Dallas south of Mockingbird Lane containing many popular Nestled beside the shores of White Rock Lake, the neighborhood of Lakewood is an idyllic place for families and bars, restaurants, boutique stores and live music venues. Home to the largest St. Patrick’s Day parade and block professionals alike. This neighborhood has a laid-back atmosphere, along with tons of beautiful green spaces and party in the Southwest, Lower Greenville Avenue encompasses a long stretch of road in East Dallas that runs north parks. Dallas Arboretum and Botanical Garden, one of Dallas’ best attractions. This attraction boasts year-wide of Ross Avenue to Mockingbird Lane. Thanks to a recent face-lift along the lowest section of the street (between seasonal exhibits, including a huge autumn festival that features life-sized fairy tales houses made out of pumpkins. Ross and Richmond), Lower Greenville, as a whole, has evolved from being a rowdy party district for late night rev- During the summer months, the Dallas Arboretum and Botanical Gardens have outdoor concerts. elers to a casually hip ‘hood boasting an ever-growing crop of eclectic shops, laid-back watering holes, and delicious dining gems. In addition to a menagerie of eateries, gastropubs, and eclectic boutiques, Lower Greenville Avenue is home to the historic Granada Theater, a stunning 1946 Art Deco style movie theater filled with opulent murals designed by the same artists who did Los Angeles’ famous Grauman’s Chinese Theater. Nowadays, the theater is best known as one of the city’s top live-music venues, touting a monthly calendar chock-full of local and big-name national acts. 6 REGIONAL
Subject Property
LOCAL
Subject Property
7 03 INVESTMENT SUMMARY SECTION FINANCIAL OVERVIEW Offering Price $3,000,000 Number of Units: 32 Property 5108-5510 Bryan St Year Built: 1950/1955 Dallas, TX 75206 Gross Sq. Ft.: 9,120 Price Per Unit $93,750 Average S.F. Per Unit: 285 Price Per S.F. $328.95 Lot Size (Acres): 0.35 Cap (current/market) 3.72% / 4.77% Density: 91 GRM (current/market) 12.79 / 9.52
UNIT MIX & SCHEDULED INCOME 2 Buildings Comprised Totals Unit Unit Current Current Market Market Monthly of 32 Units Units Mix Mix % Avg Rent Monthly Rent Rent Rent 12 Single 38% $600 $7,200 $700 $8,400 20 Efficiency 63% $600 $12,000 $875 $17,500 Scheduled Monthly Rent: $19,200 $25,900 Scheduled Yearly Rent: $230,400 $310,800 Beautiful Courtyard between the properties
Parking Available in Front and Rear
8 RENT ROLL Unit Mix Rent Market Rent 101 Single $600 $700 102 Single $600 $700 103 Single $600 $700 104 Single $600 $700 105 Single $600 $700 106 Single $600 $700 107 Single $600 $700 108 Single $600 $700 109 Single $600 $700 110 Single $600 $700 111 Single $600 $700 112 Single $600 $700 201 Efficiency $600 $875 202 Efficiency $600 $875 203 Efficiency $600 $875 204 Efficiency $600 $875 205 Efficiency $600 $875 206 Efficiency $600 $875 207 Efficiency $600 $875 208 Efficiency $600 $875 209 Efficiency $600 $875 210 Efficiency $600 $875 211 Efficiency $600 $875 212 Efficiency $600 $875 213 Efficiency $600 $875 214 Efficiency $600 $875 215 Efficiency $600 $875 216 Efficiency $600 $875 217 Efficiency $600 $875 218 Efficiency $600 $875 219 Efficiency $600 $875 220 Efficiency $600 $875 Totals $19,200 $25,900 Averages $600 $809 9 Annualized Operating Summary
Current Market
Scheduled Gross Income: $230,400 $310,800 35% Upside
Less Vacancy Reserve: $11,520 5.0% $15,540 5.0%
Other Income: $4,176 $4,176
Gross Operating Income: $223,056 $299,436
Expenses: $111,516 48.4% $156,356 50.31% *
Net Operating Income: $111,540 $143,080
Pre-Tax Cash Flow: $111,540 3.7% $143,080 4.77% **
Total Return Before Taxes: $111,540 3.72% $143,080 4.77% **
* As a percent of Scheduled Gross Income
** As a percent of Down Payment
Other income is estimated at $12 per unit per month
10 Proforma Annual Operating Expenses
Current Per Unit % of SGI Market Per Unit % of SGI
Property Taxes 2.720% x Sale Price $24,259 $758 10.88% $65,280 $2,040 21.0%
Off-Site Management 5.0% x GOI $11,153 $349 5.00% $14,972 $468 4.8%
Insurance $0.45 x GSF $4,104 $128 1.84% $4,104 $128 1.3%
On-Site Management $350 x Units $11,200 $350 5.02% $11,200 $350 3.6%
Repairs & Maintenance $400 x Units $12,800 $400 5.74% $12,800 $400 4.1%
Make-Ready $250 x Units $8,000 $250 3.59% $8,000 $250 2.6%
Landscaping $100 x Units $3,200 $100 1.43% $3,200 $100 1.0%
Pest Control $50 x Units $1,600 $50 0.72% $1,600 $50 0.5%
Utilities $1,000 x Units $32,000 $1,000 14.35% $32,000 $1,000 10.3%
Trash $100 x Units $3,200 $100 1.43% $3,200 $100 1.0%
Total Expenses $111,516 $3,485 49.99% $156,356 $4,886 50.3%
Current Per Unit % of SGI * Pro Forma/Mkt Property Taxes are Adjusted to 80%
Non-controllable expenses: Taxes, Ins., Reserves: $28,363 $886 12.3%
Total Expense without Taxes $87,257 $2,727 37.87%
11 MPS MANAGEMENT We run your business with the future in mind
24/7 Resident Service Requests Vendor Management Residents are able to submit maintenance Oversee and supervise vendors, analyze requests 24/7 through our online portal. contracts, and negotiate fees.
Rent Collection & Cash Management Financial Reporting & Accounting We ensure timely rent collection through Detailed accounting of all income, expenses, electronic payment options providing the and capital expenditures through dynamic funds necessary to manage all bills and and insightful monthly reporting. payments.
Tenant Screening & Credit Checks Define Optimal Maintenance Plan We ensure timely rent collection through MPS Management coordinates all on-site electronic payment options providing the maintenance and achieves optimal pricing funds necessary to manage all bills and through established rates and relationships payments. with preferred vendors.
Management Quote: • Rate: 8% of Effective Gross Income for this property
Management quote provided by MPS Management based on property information at this time. Actual rates and terms will vary based on property information at closing. MPS takes a long-term approach to management by creating consistent value for your property through effective leasing strategies, uncovering new sources of revenue, reducing expenses, and minimizing risks.
Please contact Tim Woods or Cesar Ponce at the information below: Tim Woods: (310) 919-5725 or [email protected] Cesar Ponce: (310) 919-5786 or [email protected] CONFIDENTIALITY & DISCLAIMER STATEMENT
This Offering Memorandum contains select information pertaining to the business and affairs of located at 5108-5110 Bryan St, Dallas TX 75206 (“Property”). It has been prepared by Matthews Retail Advisors. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Retail Advisors. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.
By acknowledging your receipt of this Offering Memorandum for the Property, you agree:
1. The Offering Memorandum and its contents are confidential;
2. You will hold it and treat it in the strictest of confidence; and
3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.
Owner and Matthews Retail Advisors expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.
If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.
A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Retail Advisors or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.
This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.
13 11-2-2015 Information About Brokerage Services Texas law requires all real estate license holders to give the following informaƟon about brokerage services to prospecƟve buyers, tenants, sellers and landlords.
TYPES OF REAL ESTATE LICENSE HOLDERS: . • A BROKER is responsible for all brokerage acƟviƟes, 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 informaƟon about the property or transacƟon received by the broker; • Answer the client’s quesƟons and present any offer to or counter-offer from the client; and • Treat all parƟes to a real estate transacƟon 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 wriƩen lisƟng to sell or property management agreement. An owner's agent must perform the broker’s minimum duƟes above and must inform the owner of any material informaƟon about the property or transacƟon known by the agent, including informaƟon 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 wriƩen representaƟon agreement. A buyer's agent must perform the broker’s minimum duƟes above and must inform the buyer of any material informaƟon about the property or transacƟon known by the agent, including informaƟon disclosed to the agent by the seller or seller’s agent.
AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parƟes the broker must first obtain the wriƩen agreement of each party to the transacƟon. The wriƩen agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligaƟons as an intermediary. A broker who acts as an intermediary: • Must treat all parƟes to the transacƟon imparƟally and fairly; • May, with the parƟes' wriƩen 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 instrucƟons of each party to the transacƟon. • Must not, unless specifically authorized in wriƟng to do so by the party, disclose: ᴑ that the owner will accept a price less than the wriƩen asking price; ᴑ that the buyer/tenant will pay a price greater than the price submiƩed in a wriƩen offer; and ᴑ any confidenƟal informaƟon or any other informaƟon that a party specifically instructs the broker in wriƟng 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 transacƟon 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 duƟes and responsibiliƟes to you, and your obligaƟons under the representaƟon 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 noƟce is being provided for informaƟon purposes. It does not create an obligaƟon for you to use the broker’s services. Please acknowledge receipt of this noƟce below and retain a copy for your records.
Kyle Matthews/Matthews Retail Group Inc. 678067 [email protected] (310) 919-5757 Licensed Broker /Broker Firm Name or License No. Email Phone Primary Assumed Business Name Kyle Matthews 678067 [email protected] (310) 919-5757 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 InformaƟon available at www.trec.texas.gov IABS 1-0 LISTED BY OFFERING MEMORANDUM
NICK DELL Associate - Multifamily [email protected] direct (214) 932-9155 mobile (214) 232-1532 Lic # 676985 (TX)
DAVID HARRINGTON EVP & National Director - Multifamily [email protected] direct (310) 295-1170 mobile (310) 497-5590 Lic # 01320460 (CA)
™ 5108-5110 BRYAN ST
DALLAS, TX 15