PHILIP LEVY 972.755.5225 SENIOR MANAGING DIRECTOR [email protected] OFFERING MEMORANDUM TABLE OF CONTENTS Lone Star Pavilion 3100-3300 Grapevine Mills Parkway, Grapevine, TX 76051 Confidenality & Disclaimer Contents The informaon contained in the following Markeng Brochure is proprietary and strictly PROPERTY INFORMATION 3 confidenal. 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 enty without the wrien consent of LOCATION INFORMATION 7 Marcus & Millichap. This Markeng Brochure has been prepared to provide summary, unverified informaon to prospecve purchasers, and to establish only a preliminary level of interest in the FINANCIAL ANALYSIS 13 subject property. The informaon contained herein is not a substute for a thorough due diligence invesgaon. Marcus & Millichap has not made any invesgaon, and makes no SALE COMPARABLES 20 warranty or representaon, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the DEMOGRAPHICS 25 property and improvements, the presence or absence of contaminang substances, PCB's or asbestos, the compliance with State and Federal regulaons, the physical condion of the improvements thereon, or the financial condion or business prospects of any tenant, or any tenant’s plans or intenons to connue its occupancy of the subject property. The informaon contained in this Markeng Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the informaon contained herein, nor has Marcus & Millichap conducted any invesgaon regarding these maers and makes no warranty or representaon whatsoever regarding the accuracy or completeness of the informaon provided. All potenal buyers must take appropriate measures to verify all of the informaon set forth herein. Non-Endorsement Noce Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee idenfied in this markeng package. The presence of any corporaon’s logo or name is not intended to indicate or imply affiliaon with, or sponsorship or endorsement by, said corporaon of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial lisng of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee informaon about this lisng to prospecve customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS Special COVID-19 Noce All potenal buyers are strongly advised to take advantage of their opportunies and obligaons to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulng from the connuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospecve purchaser. Marcus & Millichap’s principal experse is in markeng investment properes and acng as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potenal buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounng maers, and for quesons involving the property’s physical condion or financial outlook. Projecons and pro forma financial statements are not guarantees and, given the potenal volality created by COVID-19, all potenal buyers should be comfortable with and rely solely on their own projecons, analyses, and decision-making. 2 Secon 1 PROPERTY INFORMATION PROPERTY INFORMATION | EXECUTIVE SUMMARY Lone Star Pavilion 3100-3300 Grapevine Mills Parkway, Grapevine, TX 76051 OFFERING SUMMARY PROPERTY OVERVIEW Sale Price: $6,961,000 Marcus & Millichap is pleased to offer the opportunity to acquire an 84 percent occupied, 18,690-square-foot, mul- Building Size: 18,690 SF tenant retail center located in a dense retail trade area of Grapevine, Texas. Lot Size: 2.575 Acres Price / SF: $372.45 DEMOGRAPHICS 1 MILE 3 MILES 5 MILES Cap Rate: 6.0% Total Households 2,256 13,786 65,167 Current NOI: $417,705 Total Populaon 4,061 37,511 173,764 Pro Forma Cap Rate: 8.03% Average HH Income $80,946 $139,244 $117,142 Pro Forma NOI: $558,920 Year Built: 2005 4 PROPERTY INFORMATION | PROPERTY DESCRIPTION Lone Star Pavilion 3100-3300 Grapevine Mills Parkway, Grapevine, TX 76051 PROPERTY DESCRIPTION Marcus & Millichap is pleased to offer the opportunity to acquire an 18,690-square-foot, value-add, mul-tenant strip center located in a dense retail trade area of Grapevine, Texas. Lone Star Pavilion is 84 percent occupied with all credit tenants and all having triple-net leases. Tenants consist of Fuzzy’s Taco Shop, Maress Firm, The Leather Sofa Company, and FedEx Office. The subject property consists of two buildings constructed in 2005, situated on two parcels of land totaling 2.57 acres. The property has ample paved parking. LOCATION DESCRIPTION The subject property is located at the high-traffic intersecon of Grapevine Mills Parkway and Texas Highway 121. Traffic counts on Grapevine Mills Parkway are 54,000 vehicles per day and approximately 127,200 vehicles per day on Highway 121. Lone Star Pavilion sits directly across the road from Grapevine Mills Mall, an indoor mall featuring 180 stores of shopping, entertainment, and restaurants. Featured stores include Neiman Marcus Last Call, Saks Fih Avenue Off 5th, H&M, Burlington Coat Factory, Marshalls, Forever 21, Nike Factory Store, Coach Factory, Ann Taylor Factory Store, Under Armour, and more. Grapevine Mills also features AMC Grapevine Mills 30 with Dine-In Theatres, Fieldhouse USA, LEGOLAND Discovery Center, Sea Life Aquarium, The Escape Game, Round 1 Bowling and Amusement, and Rainforest Café. Numerous other retailers are in the surrounding area, including Ashley Home Store, Rooms to Go, Cracker Barrel Old Country Store, Chuck E. Cheese’s, Altude Trampoline Park, Chair King, Blue Goose Canna, Discount Tire, Chick-fil-A, Chipotle, Applebee’s, Steak ‘N Shake, and Bass Pro Shop. Several naonal hotel chains are also in close proximity, as well as major resorts Gaylord Texan Resort & Convenon Center and Great Wolf Lodge. A dense industrial area is southeast of the property, with major employers including Amazon Fulfillment Center, Fresenius Medical Care, The Container Store Distribuon Center, NAPA Auto Parts, FedEx Supply Chain, Gordon Food Service, and Norwex. Grapevine is located in the center of the Dallas/Fort Worth region, 21 miles northwest of downtown Dallas and 19 miles northeast of downtown Fort Worth. The city is located in the northeast corner of Tarrant County and is home to the Dallas-Fort Worth Internaonal Airport, the third busiest airport in the world. Two-thirds of the airport, including all terminal buildings, are located within Grapevine city limits. Also located within the city is Grapevine Lake, a major water source for the Metroplex managed by the U.S. Army Corps of Engineers. Three major freeways, State Highway 114, State Highway 121, and Interstate Highway 635, intersect in the heart of Grapevine and provide excellent access to Dallas and Fort Worth and the area's shopping and entertainment and employment centers. 5 PROPERTY INFORMATION | COMPLETE HIGHLIGHTS Lone Star Pavilion 3100-3300 Grapevine Mills Parkway, Grapevine, TX 76051 BUILDING INFORMATION Occupancy % 84% Tenancy Mulple Year Built 2005 County Tarrant PROPERTY HIGHLIGHTS 18,690-Square-Foot, Mul-Tenant Shopping Center in a Dense Retail Trade Area 84% Occupied | All Current Leases are Triple-Net Strong Tenant Base | All Current Leases Include Naonal or Regional Tenants Future Upside Potenal | The Center Currently has Two Vacant Suites and Two Tenants that have Below Market Rents Consists of Two Buildings Situated on 2.57 Acres With Ample Paved Parking High-Traffic Locaon at the Intersecon of Grapevine Mills Parkway and Texas Highway 121 | 54,000 Vehicles per Day on Grapevine Mills Parkway | 127,200 Vehicles per Day on Highway 121 Proposed Redevelopment Project of Former Fitness Center Directly Behind Subject Property | Bay West Stars and Stripes Apartment Complex Would Add 500+ Mul- Family Apartment Homes | Subject Property Would Benefit from Increased Traffic and Upgrades to the Common Area Grounds Directly Across from Grapevine Mills Mall, a Popular Desnaon for Shopping, Dining and Entertainment | 180+ Stores | Features Major Retailers as well as AMC Grapevine Mills 30 with Dine-In Theatres, Fieldhouse USA, LEGOLAND, Sea Life Aquarium, Rainforest Cafe, Round 1 Bowling and Amusement, and Much More Near Gaylord Texas Resort & Convenon Center | Hosts One Million Visitors Annually The City of Grapevine is a Popular Tourist Desnaon and Aracts Approximately 15 Million Visitors Annually Property is in Close Proximity to Dallas-Fort Worth Internaonal Airport Excellent Demographics | Populaon within Five Miles is 173,764 Residents with an Average Household Income Exceeding $117,000 6 Secon 2 LOCATION INFORMATION LOCATION INFORMATION | REGIONAL MAP Lone Star Pavilion 3100-3300 Grapevine Mills Parkway, Grapevine, TX 76051 Lone Star Pavilion 8 LOCATION INFORMATION | LOCATION MAPS Lone Star Pavilion 3100-3300 Grapevine Mills Parkway, Grapevine, TX 76051 9 LOCATION INFORMATION | AERIAL MAP Lone Star Pavilion 3100-3300 Grapevine Mills Parkway, Grapevine, TX 76051 10 LOCATION INFORMATION