File Photo 214.915.8890
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FILE PHOTO 214.915.8890 Property. New 2,256+ SF building on +0.86 acres. JOE CAPUTO Tenant. Starbucks Corporation | FY 2017 financials: $22.4 billion in revenue and $4.1 billion in net income | Over 28,000 locations worldwide. [email protected] Lease structure. New 10-year, corporate net lease with 10% rent increases every 5 years in primary term and option periods. RUSSELL SMITH Location. Starbucks is strategically located off exit 65 of US-75 (55,000 VPD) near its intersection with Grayson Dr. (5,000 VPD) in Denison, TX. The site will benefit [email protected] as it will feature direct access and excellent visibility through strong signage to US-75. Additionally, the subject property will serve the more than 3,000 employees that ALEX TOWER work at the Texoma Medical center, the adjacent Hilton Garden Hotel (130 rooms), and the Residence at Gateway Village (180 units). The subject property is in close [email protected] proximity both Sherman Town Center (606,494 SF) and Midway Mall (600,000 SF), two regional malls in the immediate trade area containing tenants such as Dillard’s, Target, Home Depot, Walmart, Ross, JC Penney, Old Navy, Burlington, Petco, Discount Tire, CVS, Buffalo Wild Wings, Applebee’s, Panera, Chick-fil-A, Taco Bell, Chipotle, Sonic, KFC, and many others. Additional tenants in the trade area include Sam’s Club, Lowe’s, Kohl’s, ALDI, Academy, Tractor Supply Co, O’Reilly, Taco Cabana, Wing Stop, Whataburger, Jimmy John’s, McDonald’s, and more. Denison is approximately 4-miles from TX-OK border and 75-miles from DFW Metroplex. PAGE 2: TABLE OF CONTENTS | DISCLAIMER Trivanta (“Agent”) has been engaged as an agent for the sale of the property located at PAGE 3: INVESTMENT | TENANT | LEASE OVERVIEW 5131 S. US-75, Denison, TX by the owner of the Property (“Seller”). The Property is being offered for sale in an “as-is, where-is” condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this PAGE 4: TENANT OVERVIEW CONTINUED Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the PAGE 5-8: AERIAL PHOTOS interest described herein. The enclosed materials are being provided solely to facilitate the prospective investor’s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, PAGE 9-10: SITE PLAN but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, PAGE 11: ELEVATION partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of PAGE 12-14: LOCATION OVERVIEW some of the principal provisions contained therein. Neither the Agent nor the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained PAGE 15-16: LOCATION MAPS herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without PAGE 17: DEMOGRAPHICS reliance upon the material contained herein. Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller. Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller’s obligations hereunder have been satisfied or waived. By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller and Agent. 2 PRICE | CAP RATE: $2,000,000 | 5.25% Lease Term: 10-Years, Plus (4), 5-Year Options to Extend NET OPERATING INCOME: $105,000 Projected Rent Commencement: October 2018 BUILDING AREA: 2,256+ Square Feet Projected Lease Expiration: October 2028 LAND AREA: 0.86+ Acres Lease Type: Corporate Net Lease YEAR BUILT 2018 Rent Increases: 10% Every 5 Years In Primary Term & Options Annual Rent Yrs 1-5: $105,000 LANDLORD RESPONSIBILITY: Roof & Structure Annual Rent Yrs 6-10: $115,500 OWNERSHIP: Fee Simple Interest Option 1 | Yrs 11-15: $127,050 OCCUPANCY: 100% Option 2 | Yrs 16-20: $139,755 Option 3 | Yrs 21-25: $153,730 Option 4 | Yrs 26-30: $169,103 Starbucks Corporation, a Washington Corporation. STARBUCKS | www.starbucks.com | NASDAQ: SBUX Starbucks Corporation is an international coffee and coffeehouse chain based in Seattle, Washington, United States. Starbucks is the largest coffeehouse company in the world, with over 28,000 stores globally, including around 13,000 in the United States, followed by nearly 1,000 in Canada and more than 900 in Japan. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, snacks, and items such as mugs and coffee beans. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company’s products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores. Starbucks retail stores are located in high-traffic, high-visibility locations. Its stores are located in or near a variety of settings, including downtown and suburban retail centers, office buildings and university campuses. The Company sells whole bean and ground coffees, including the Starbucks and Seattle’s Best Coffee brands, as well as a selection of premium Tazo teas, VIA and other related products, to institutional foodservice companies that service business and industry, education, healthcare, office coffee distributors, hotels, restaurants, airlines and other retailers. From Starbucks founding in later forms as a local coffee bean roaster and retailer, the company has expanded rapidly. In the 1990s, Starbucks was opening a new store every workday, a pace that continued into the 2000s. The first store outside the United States or Canada opened in the mid-’90s, and overseas stores now constitute almost one third of Starbucks stores. In fiscal 2017, the company reported revenues of $22.4 billion and net income of $4.1 billion 3 ~ 28,000 77 Source:starbucks.com 4 5 Sherman Town Center (606,494 SF) Midway Mall (600,00 SF) Texoma Medical Center (3,000+ employees, 326 beds) Gateway Village Master Planned Community (2,225 acres) 6 Texoma Medical Center (3,000+ employees, 326 beds) Downtown Denison (Approx. 5-miles) Grayson College Heritage Pkwy. (7,000 VPD) (7,000 Pkwy. Heritage (5,014 students) Woodlawn Country Club Industrial Park Sherman Midway Mall Town Center (600,00 SF) (606,494 SF) US-82 (26,000 VPD) Sherman, TX 7 The Residence at Gateway Village Gateway Village Master Planned Community Gateway Village (180 units) (2,225 acres) Master Planned Community (2,225 acres) Hilton Garden Inn Denison/Sherman/ At Texoma Event Center (130 rooms) Texoma Medical Center Grayson Dr. (5,000 VPD) (3,000+ employees, 326 beds) Swamy Clinic Cosmetic Surgeons 8 9 10 v v 11 GRAYSON COUNTY POPULATION TO SURPASS 330K BY 2050 Hutchins, Michael, Feb. 10, 2018 –The Sherman-Denison Metropolitan Planning Organization recently received an updated vision of what the demographics of the region may looks like nearly 35 years in the future. As part of work on a county-wide thoroughfare plan, consultants presented the SDMPO technical advisory plan with projections for growth that greatly outpace what the region has historically seen. Huitt Zollars and Community Development Strategies presented a vision of the region in the year 2050 with a population of more than 330,000 residents. Among the communities expected to see the greatest growth in the forecast are Van Alstyne, Howe and Sherman. “We are basically saying suburbia arrives in Grayson County,” CDS President Steven Spillette said. “We are saying Grayson County will have very aggressive growth, so ‘get ready’ is the message.” The demographic forecast was commissioned as part of a thoroughfare plan that will outline the major transportation routes and roads throughout the region. The growth into Grayson County and Texoma is expected to be part of the growth north from the Dallas-Fort Worth Metroplex as the region continues to suburbanize.