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Victory Shops at Heritage Trace I 2701 Heritage Trace Parkway, Fort Worth, TX 76177
1 TABLE OF CONTENTS
Victory Shops at Heritage Trace I 2701 Heritage Trace Parkway, Fort Worth, TX 76177
Confdentality & Disclaimer Contents The informaton contained in the following Marketng Brochure is proprietary and strictly PROPERTY INFORMATION 3 confdental. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entty without the writen consent of LOCATION INFORMATION 7 Marcus & Millichap. This Marketng Brochure has been prepared to provide summary, unverifed informaton to prospectve purchasers, and to establish only a preliminary level of interest in the FINANCIAL ANALYSIS 11 subject property. The informaton contained herein is not a substtute for a thorough due diligence investgaton. Marcus & Millichap has not made any investgaton, and makes no RENT COMPARABLES 17 warranty or representaton, with respect to the income or expenses for the subject property, the future projected fnancial performance of the property, the size and square footage of the DEMOGRAPHICS 21 property and improvements, the presence or absence of contaminatng substances, PCB's or asbestos, the compliance with State and Federal regulatons, the physical conditon of the improvements thereon, or the fnancial conditon or business prospects of any tenant, or any tenant’s plans or intentons to contnue its occupancy of the subject property. The informaton contained in this Marketng Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verifed, and will not verify, any of the informaton contained herein, nor has Marcus & Millichap conducted any investgaton regarding these maters and makes no warranty or representaton whatsoever regarding the accuracy or completeness of the informaton provided. All potental buyers must take appropriate measures to verify all of the informaton set forth herein. Non-Endorsement Notce
Marcus & Millichap is not afliated with, sponsored by, or endorsed by any commercial tenant or lessee identfed in this marketng package. The presence of any corporaton’s logo or name is not intended to indicate or imply afliaton with, or sponsorship or endorsement by, said corporaton of Marcus & Millichap, its afliates or subsidiaries, or any agent, product, service, or commercial listng of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee informaton about this listng to prospectve customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS Special COVID-19 Notce
All potental buyers are strongly advised to take advantage of their opportunites and obligatons to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resultng from the contnuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospectve purchaser. Marcus & Millichap’s principal expertse is in marketng investment propertes and actng as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potental buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, fnancial, and accountng maters, and for questons involving the property’s physical conditon or fnancial outlook. Projectons and pro forma fnancial statements are not guarantees and, given the potental volatlity created by COVID-19, all potental buyers should be comfortable with and rely solely on their own projectons, analyses, and decision-making.
2 Secton 1 PROPERTY INFORMATION PROPERTY INFORMATION | EXECUTIVE SUMMARY
Victory Shops at Heritage Trace I 2701 Heritage Trace Parkway, Fort Worth, TX 76177
OFFERING SUMMARY PROPERTY OVERVIEW Sale Price: $7,036,000 Marcus and Millichap is pleased to ofer the opportunity to acquire a new constructon, 11,901-square-foot, mult-tenant Building Size: 11,901 SF retail center located in a high-growth area in Fort Worth, Texas. Victory Shops at Heritage Trace I is currently 100 percent Lot Size: 1.596 Acres occupied with a mix of credit and local tenants, and the center is strategically positoned to serve a highly afuent and Price / SF: $591.21 densely populated surrounding area. Cap Rate: 5.5% NOI: $387,013 DEMOGRAPHICS 1 MILE 3 MILES 5 MILES Year Built: 2019 Total Households 3,778 29,529 78,528 County: Tarrant Total Populaton 11,136 92,536 236,993 Ownership Type: Fee Simple Average HH Income $104,348 $117,283 $112,399
4 PROPERTY INFORMATION | PROPERTY DESCRIPTION
Victory Shops at Heritage Trace I 2701 Heritage Trace Parkway, Fort Worth, TX 76177
PROPERTY DESCRIPTION Victory Shops at Heritage Trace I is an 11,901-square-foot, mult-tenant retail center located in a high-growth area in the northern porton of Fort Worth, Texas. The center is 100 percent occupied, and all leases are triple-net. Tenants consist of a complementary mix of internet-resistant, service-oriented businesses including Marble Slab Creamery/Great American Cookies, Aria Nail Bar, HOTWORX, Trinity Oaks Family Dental & Orthodontcs, and Natve Cofee & Kitchen. The building is new 2019 constructon with an atractve façade and is situated on a 1.596-acre lot.
LOCATION DESCRIPTION The subject property is situated on the north side of Heritage Trace Parkway, less than one- half mile from heavily-trafcked Interstate 35 West, the major north/south thoroughfare in the city. Trafc counts in front of the subject property on Heritage Trace Parkway are approximately 17,700 vehicles per day. The center is located in a prime retail corridor near many major retailers including Target, Hobby Lobby, JCPenney, Belk, Kroger Marketplace, Dick's Sportng Goods, Rooms to Go, Costco, At Home, TJ Maxx, PetSmart, Total Wine & More, and numerous others. The subject property is located directly across Heritage Trace Parkway from The Citadel, a master planned development situated on 89 acres that will feature ofce space, apartment homes, outdoor pursuits, and diverse hospitality, retail and dining opportunites.
Victory Shops at Heritage Trace I is in close proximity to multple hotels and school campuses, providing additonal trafc. The surrounding area benefts from excellent demographics, serving a populaton of more than 236,900 residents within a fve-mile radius. The average household income is $104,348 within one mile; $117,283 within three miles; and $112,399 within fve miles.
Victory Shops at Heritage Trace I is located approximately 12 miles north of downtown Fort Worth. Fort Worth is the ffh largest city in Texas, and the thirteenth largest city in the United States. Fort Worth is home to many multnatonal corporatons, including Bell Helicopter, Lockheed Martn, American Airlines, among others, and enjoys a daytme populaton exceeding 621,000 people.
5 PROPERTY INFORMATION | COMPLETE HIGHLIGHTS
Victory Shops at Heritage Trace I 2701 Heritage Trace Parkway, Fort Worth, TX 76177
PROPERTY HIGHLIGHTS 11,901-Square-Foot, Mult-Tenant Retail Center | 100% Occupied | All Leases are Triple-Net
Current Average Rents are Below Market
Tenant Base is a Complementary Mix of Internet-Resistant, Service-Oriented Businesses | Mix of Credit and Local Tenants
New (2019) Constructon Situated on 1.596 Acres with Ample Parking on a Concrete Lot
Strategically Located in the High-Growth Alliance Trade Area on Heritage Trace Parkway, One Lot West of Interstate 35 West | Trafc Counts Directly in Front of the Property on Heritage Trace Parkway are Approximately 17,700 Vehicles Per Day | Interstate 35 West has Extremely High Trafc Counts of 114,400 Vehicles Per Day
Directly Across from The Citadel Development, a 600,000-Square-Foot Master Planned Power/Lifestyle Center Situated on 89 Acres at the Southwestern Corner of Interstate 35 West and Heritage Trace Parkway | Will Feature Restaurants, Entertainment, Fitness, Specialty Retail, a Grocery Store, Hotel, and 500 Apartment Homes
Surrounding Area has Excellent Demographics | The Average Household Income is $104,348 Within a One-Mile Radius; $117,283 Within a Three-Mile Radius; and $112,399 Within a Five-Mile Radius | Populaton Exceeds 236,900 Within Five Miles
Prime Retail Corridor Along Interstate 35 West that is Experiencing Tremendous Development | Major Retailers Include Target, Hobby Lobby, JCPenney, Belk, Kroger Marketplace, Dick's Sportng Goods, Rooms to Go, Costco, At Home, TJ Maxx, PetSmart, Total Wine & More, and Numerous Others
Additonal Trafc to the Area Comes From Multple Hotels, Texas Health Harris Methodist Hospital, Nearby School Campuses, and Life Time Athletc Club
Located Approximately Six Miles from Fort Worth Alliance Airport and 12 Miles from Downtown Fort Worth
6 Secton 2 LOCATION INFORMATION LOCATION INFORMATION | REGIONAL MAP
Victory Shops at Heritage Trace I 2701 Heritage Trace Parkway, Fort Worth, TX 76177
Victory Shops at Heritage Trace I
8 LOCATION INFORMATION | AERIAL MAP
Victory Shops at Heritage Trace I 2701 Heritage Trace Parkway, Fort Worth, TX 76177
9 LOCATION INFORMATION | AERIAL MAP
Victory Shops at Heritage Trace I 2701 Heritage Trace Parkway, Fort Worth, TX 76177
10 Secton 3 FINANCIAL ANALYSIS FINANCIAL ANALYSIS | FINANCIAL SUMMARY
Victory Shops at Heritage Trace I 2701 Heritage Trace Parkway, Fort Worth, TX 76177
INVESTMENT OVERVIEW CURRENT Price $7,036,000 Price per SF $591.21 Cap Rate 5.5 % Total Return (yr 1) $387,013
OPERATING DATA CURRENT Gross Income $548,974 Operatng Expenses $161,960 Net Operatng Income $387,013
12 FINANCIAL ANALYSIS | INCOME & EXPENSES
Victory Shops at Heritage Trace I 2701 Heritage Trace Parkway, Fort Worth, TX 76177
INCOME SUMMARY CURRENT PER SF
Base Rent $385,813 $32.42 Sign Income $1,200 $0.10 Real Estate Taxes Reimbursements $93,767 $7.88 Insurance Reimbursements $14,437 $1.21 Common Area Maintenance Reimbursements $32,546 $2.73 Management Fee Reimbursements $21,211 $1.78 GROSS INCOME $548,974 $46.13
EXPENSE SUMMARY CURRENT PER SF
Real Estate Taxes $93,767 $7.88 Insurance $14,437 $1.21 Utlites & Trash $22,980 $1.93 Landscaping $5,593 $0.47 Repairs & Maintenance $3,450 $0.29 Fire Alarm $522 $0.04 Management Fee $21,211 $1.78 GROSS EXPENSES $161,960 $13.61
NET OPERATING INCOME $387,013 $32.52
13 FINANCIAL ANALYSIS | RENT ROLL
Victory Shops at Heritage Trace I 2701 Heritage Trace Parkway, Fort Worth, TX 76177
EXPENSE SIGN LEASE SUITE TENANT NAME UNIT SIZE (SF) % OF GLA LEASE START LEASE END ANNUAL RENT RENT/SF CHANGES ON CHANGES TO REIMBURSEMENT INCOME TYPE
Marble Slab Creamery 2705 1,800 15.12% 11/11/2019 12/31/2029 $63,000 $35.00 1/01/25 $38.50 $24,496 $1,200.00 NNN Great American Cookies
2713 Aria Nail Bar 3,600 30.25% 9/12/2019 9/30/2029 $100,800 $28.00 10/01/22 $29.00 $48,993 NNN
10/01/26 $30.00
2717 HOTWORX 1,800 15.12% 9/12/2019 9/30/2029 $59,927 $33.29 10/01/22 $33.95 $24,496 NNN
10/01/23 $34.63
10/01/24 $35.33
10/01/25 $36.03
10/01/26 $36.75
10/01/27 $37.49
10/01/28 $38.24
Trinity Oaks Family Dental 2721 2,200 18.49% 8/15/2019 12/31/2029 $72,050 $32.75 9/01/24 $36.02 $29,940 NNN & Orthodontics
2725 Native Coffee & Kitchen 2,501 21.02% 11/17/2019 1/31/2031 $90,036 $36.00 2/01/25 $39.60 $34,036 NNN
TOTAL 11,901 100% $385,813 $161,961
14 FINANCIAL ANALYSIS | TENANT INFORMATION
Victory Shops at Heritage Trace I 2701 Heritage Trace Parkway, Fort Worth, TX 76177
MARBLE SLAB CREAMERY & GREAT AMERICAN COOKIES FOUNDED 1983 LOCATIONS 390+ SQ. FT. 1,800
Marble Slab Creamery is a chain of independently owned and operated franchised stores that specialize in serving homemade ice cream and a variety of other desserts. It is a franchise brand in the FAT Brands franchise portfolio. FAT Brands (NASDAQ: FAT) is a leading global franchising company that strategically acquires, markets, and develops fast casual and casual dining restaurant concepts around the world. The Company currently owns 14 restaurant brands: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Great American Cookies, Hot Dog on a Stick, Buffalo’s Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Yalla Mediterranean, Ponderosa and Bonanza Steakhouses, and franchises over 2,000 units worldwide.
HOTWORX FOUNDED 2014 LOCATIONS 62+ SQ. FT. 1,800
HOTWORX is a virtually instructed exercise program created for users to experience the many benefits of infrared heat absorption, while completing a 30-minute isometric workout or 15-minute High Intensity Interval Training (HIIT) session.
15 FINANCIAL ANALYSIS | FINANCING INFORMATION
Victory Shops at Heritage Trace I 2701 Heritage Trace Parkway, Fort Worth, TX 76177
MARCUS & MILLICHAP CAPITAL CORPORATION ACQUISITION & REFINANCING OPTIONS MMCC—our fully integrated, dedicated financing arm—is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and terms. WHY MMCC? We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide Optimum financing solutions our clients with the greatest range of financing options. to enhance value
Our dedicated, knowledgeable experts understand the challenges of financing and work tirelessly to Enhanced control through Investor resolve all potential issues for the benefit of our clients. qualification support
Enhanced control through MMCC’s ability to qualify Investor finance contingencies
Enhanced control through identifying potential debt/equity Closed 1,943 debt and National platform $ 7.7 billion total Access to more capital sources, processing, and closing equity financings operating withinthefirm’s national volumein sourcesthan any other firm buyers finance alternatives in2020 brokerageoffices 2020 inthe industry
Enhanced control through MMCC’s ability to monitor Investor/due diligence and underwriting to ensure timely predictable closings
Sunny Sajnani Todd McNeill Brandon Wilhite Senior Managing Director Senior Managing Director Senior Director (972) 764-8808 (972) 764-8818 (972) 764-8803
16 Secton 4 RENT COMPARABLES RENT COMPARABLES | LEASE COMPS
Victory Shops at Heritage Trace I 2701 Heritage Trace Parkway, Fort Worth, TX 76177
★ VICTORY SHOPS AT HERITAGE TRACE I 2701 Heritage Trace Parkway, Fort Worth, TX 76177
Lease Rate $32.42 SF/yr Lease Type: NNN ★ Occupancy: 100%
1 THE CITADEL AT HERITAGE TRACE - LOT 6 9437 North Freeway , Fort Worth, TX 76177
Lease Rate $40 SF/yr Lease Type: NNN 1 Occupancy: 100%
2 THE CITADEL AT HERITAGE TRACE - LOT 3 9333 North Freeway, Fort Worth, TX 76177
Lease Rate $40 SF/yr Lease Type: NNN 2 Occupancy: 90%
18 RENT COMPARABLES | LEASE COMPS
Victory Shops at Heritage Trace I 2701 Heritage Trace Parkway, Fort Worth, TX 76177
3 THE CITADEL AT HERITAGE TRACE - LOT 8 9411 North Freeway , Fort Worth, TX 76177
Lease Rate $42 SF/yr Lease Type: NNN 3
4 PRESIDIO JUNCTION 8901 North Freeway, Fort Worth, TX 76177
Lease Rate $42 SF/yr Lease Type: NNN 4 Occupancy: 100%
5 PRESIDIO JUNCTION 8825 North Freeway, Fort Worth, TX 76177
Lease Rate $50 SF/yr Lease Type: NNN 5 Occupancy: 100%
19 RENT COMPARABLES | LEASE COMPS MAP & SUMMARY
Victory Shops at Heritage Trace I 2701 Heritage Trace Parkway, Fort Worth, TX 76177
NAME/ADDRESS LEASE RATE LEASE TYPE OCCUPANCY Victory Shops at Heritage Trace I ★ 2701 Heritage Trace Parkway $32 SF/yr NNN 100% Fort Worth, TX The Citadel at Heritage Trace - Lot 6 1 9437 North Freeway $40 SF/yr NNN 100% Fort Worth, TX The Citadel at Heritage Trace - Lot 3 2 9333 North Freeway $40 SF/yr NNN 90% Fort Worth, TX The Citadel at Heritage Trace - Lot 8 3 9411 North Freeway $42 SF/yr NNN - Fort Worth, TX Presidio Juncton 4 8901 North Freeway $42 SF/yr NNN 100% Fort Worth, TX Presidio Juncton 5 8825 North Freeway $50 SF/yr NNN 100% Fort Worth, TX AVERAGES $41 SF/YR 98%
20 Secton 5 DEMOGRAPHICS DEMOGRAPHICS | DEMOGRAPHICS MAP & REPORT
Victory Shops at Heritage Trace I 2701 Heritage Trace Parkway, Fort Worth, TX 76177
POPULATION 1 MILE 3 MILES 5 MILES Total Populaton 11,136 92,536 236,993 Average age 31.70 32.20 33.20 Average age (Male) 31.00 31.70 32.60 Average age (Female) 32.30 32.80 33.80
HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES Total households 3,778 29,529 78,528 # of persons per HH 2.90 3.10 3.00 Average HH income $104,348 $117,283 $112,399 Average house value $249,813 $259,142 $248,684
ETHNICITY (%) 1 MILE 3 MILES 5 MILES Hispanic 24.4% 22.6% 22.2%
RACE 1 MILE 3 MILES 5 MILES % White 75.0% 75.5% 77.1% % Black 12.7% 11.8% 10.7% % Asian 7.7% 8.4% 8.0% % Hawaiian 0.4% 0.3% 0.2% % American Indian 0.7% 0.7% 0.8% % Other 3.5% 3.3% 3.2% * Demographic data derived from 2010 US Census
22 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. 11-2-2015
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 o er to or counter-offer from the client; and • Treat all parties to a real estate transaction honestly and fairly. ff A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:
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Marcus & Millichap 9002994 [email protected] 972-755-5200 Licensed Broker /Broker Firm Name or Primary Assumed Business Name License No. Email Phone Tim A. Speck 432723 [email protected] 972-755-5200 Designated Broker of Firm License No. Email Phone
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Regulated by the Texas Real Estate Commission Information available at www.trec.texas.gov IABS 1-0 P H I L I P L E V Y C H R I S G A I N E Y Senior Managing Director First Vice President Investments Dallas Ofce Fort Worth Ofce
972.755.5225 Ofce 817.932.6122 Ofce 817.380.1153 Fax 817.380.1153 Fax [email protected] [email protected] LICENSE: TX 0522087 LICENSE: TX 0612970
5001 Spring Valley Road 300 Throckmorton Street Dallas, TX 75244 Fort Worth, TX 76102