PHILIP LEVY 972.755.5225 SENIOR MANAGING DIRECTOR [email protected] OFFERING MEMORANDUM Uptown Center 613 & 617 Uptown Boulevard, Cedar Hill, TX 75104 Confidentiality & Disclaimer Contents The information contained in the following Marketing Brochure is proprietary and strictly PROPERTY INFORMATION 3 confidential. 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 entity without the written consent of LOCATION INFORMATION 8 Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified FINANCIAL ANALYSIS 14 information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due SALE COMPARABLES 21 diligence investigation. Marcus & Millichap has not made any investigation, and makes no RENT COMPARABLES 28 warranty or representation, 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 35 property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Non-Endorsement Notice Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS 2 Section 1 PROPERTY INFORMATION PROPERTY INFORMATION | EXECUTIVE SUMMARY Uptown Center 613 & 617 Uptown Boulevard, Cedar Hill, TX 75104 PROPERTY OVERVIEW SALE PRICE $5,470,000 Marcus & Millichap is pleased to offer the opportunity to acquire Uptown Center, a fully stabilized, 22,816-square foot multi-tenant retail center shadow-anchored by Walmart Supercenter, located in the high-growth Dallas suburb of Cedar OFFERING SUMMARY Hill, Texas. Building Size: 22,816 SF Lot Size: 2.738 Acres DEMOGRAPHICS 1 MILE 3 MILES 5 MILES Price / SF: $239.74 Total Households 1,646 17,531 41,017 Cap Rate: 7.01% Total Population 10,087 59,358 131,232 NOI: $383,695 Average HH Income $76,868 $84,335 $82,044 Year Built: 2005 County: Dallas 4 PROPERTY INFORMATION | PROPERTY DESCRIPTION Uptown Center 613 & 617 Uptown Boulevard, Cedar Hill, TX 75104 PROPERTY DESCRIPTION Uptown Center is a fully stabilized, 22,816-square foot multi-tenant retail center located in the high-growth Dallas suburb of Cedar Hill, Texas. The center is 100 percent occupied, and all leases are triple-net. Constructed in 2005, the property consists of two multi-tenant buildings situated on two parcels totaling 2.738 acres. Tenants consist of a complementary mix of service-oriented businesses, including Solis Mammography, Cedar Hills Martial Arts, Allstate Insurance, Momentum Family Chiropractic, Bre Nails, Mane and Groom Barber, Edible Arrangements, Key Pharmacy, Fit Body Boot Camp, and JP & Associates Realtors. LOCATION DESCRIPTION Shadow-anchored by Walmart Supercenter, the subject property is located in a dense retail trade area in the southwestern quadrant of two major highways, J Elmer Weaver Freeway (Highway 67) and FM 1382, which enjoys high cumulative traffic counts of approximately 97,000 vehicles per day. Uptown Corners faces Uptown Boulevard, a connecting road between FM 1382 and Belt Line Road. Numerous national and regional retailers are in the surrounding area, including Walmart, Target, Michaels, Dick’s Sporting Goods, Best Buy, Bed Bath & Beyond, Party City, Barnes & Noble, H&M, Dillard’s, JCPenney, Cinemark 14, Family Dollar, Hobby Lobby, Ross Dress for Less, Pier 1 Imports, DSW, Marshalls, CVS, and many more. The area benefits from strong demographics with approximately 131,230 residents within five miles and an average household income of $82,000. Cedar Hill is a city in Dallas and Ellis counties. It is located approximately 16 miles southwest of downtown Dallas and is situated along the eastern shore of Joe Pool Lake and Cedar Hill State Park. Cedar Hill is part of the Best Southwest area, which includes the nearby cities of DeSoto, Duncanville, and Lancaster. Cedar Hill’s commercial development is situated in the heart of the City along Highway 67, and includes the three areas of Uptown, Midtown, and Downtown. 5 PROPERTY INFORMATION | COMPLETE HIGHLIGHTS Uptown Center 613 & 617 Uptown Boulevard, Cedar Hill, TX 75104 BUILDING INFORMATION Occupancy % 100.0% Tenancy Multiple Year Built 2005 Type Of Ownership Fee Simple PROPERTY HIGHLIGHTS • 100% Occupied | All Leases are Triple-Net • Shadow-Anchored by Walmart Supercenter • Comprised of Two Multi-Tenant Buildings Totaling 22,816 Square Feet • Service-Oriented Tenant Base that is Largely Internet Resistant • 69% of the Gross Leasable Area has Personally-Guaranteed Leases • Attractive Building Facade and Landscaping • Recent Property Improvements Include Exterior Building Painting, Sign Painting, LED Lighting Upgrade, Parking Lot and Retaining Wall Repairs and Roof Maintenance • Located in a Dense Retail Trade Area in the Southwestern Quadrant of Highway 67 and FM 1382, with Cumulative Traffic Counts of Approximately 97,000 Vehicles per Day • Numerous National and Regional Tenants in the Area, Including JCPenney, Target, Dillard's, H&M, Barnes & Noble, Cinemark, Hobby Lobby, Dick's Sporting Goods, Ross Dress for Less, DSW and Many More • Surrounding Area has Strong Demographics | 131,230 Residents Within Five Miles | Five-Mile Average Household Income Exceeds $82,000 • The City of Cedar Hill is Conveniently Located 16 Miles Southwest of Downtown Dallas | Part of the Best Southwest Area, which Includes the Cities of DeSoto, Duncanville and Lancaster 6 PROPERTY INFORMATION | AERIAL MAPS Uptown Center 613 & 617 Uptown Boulevard, Cedar Hill, TX 75104 7 Section 2 LOCATION INFORMATION LOCATION INFORMATION | REGIONAL MAP Uptown Center 613 & 617 Uptown Boulevard, Cedar Hill, TX 75104 Uptown Center 9 LOCATION INFORMATION | LOCATION MAPS Uptown Center 613 & 617 Uptown Boulevard, Cedar Hill, TX 75104 10 LOCATION INFORMATION | AERIAL MAPS Uptown Center 613 & 617 Uptown Boulevard, Cedar Hill, TX 75104 11 LOCATION INFORMATION | AERIAL MAPS Uptown Center 613 & 617 Uptown Boulevard, Cedar Hill, TX 75104 12 LOCATION INFORMATION | AERIAL MAPS Uptown Center 613 & 617 Uptown Boulevard, Cedar Hill, TX 75104 13 Section 3 FINANCIAL ANALYSIS FINANCIAL ANALYSIS | FINANCIAL SUMMARY Uptown Center 613 & 617 Uptown Boulevard, Cedar Hill, TX 75104 INVESTMENT OVERVIEW Price $5,470,000 Price per SF $239.74 CAP Rate 7.01 % Total Return (yr 1) $383,695 OPERATING DATA Gross Income $565,859 Operating Expenses $182,164 Net Operating Income $383,695 FINANCING DATA Down Payment $5,470,000 Loan T ype All Cash 15 FINANCIAL ANALYSIS | INCOME & EXPENSES Uptown Center 613 & 617 Uptown Boulevard, Cedar Hill, TX 75104 INCOME SUMMARY PER SF Base Rent $392,557 $17.21 Real Estate Taxes Reimbursements $95,477 $4.18 Insurance Reimbursements $11,619 $0.51 Common Area Maintenance Reimbursements $56,223 $2.46 Management Fee Reimbursements $5,173 $0.23 Administrative Fee $4,810 $0.21 Gross Income $565,859 $24.80 EXPENSE SUMMARY PER SF Real Estate Taxes $95,477 $4.18 Insurance $11,619 $0.51 Utilities $7,650 $0.34 Trash Removal $11,197 $0.49 Painting $19,893 $0.87 Landscaping $9,216 $0.40 Fire Protection $1,660 $0.07 Day Porter $7,800 $0.34 Irrigation $441 $0.02 Repairs $878 $0.04 Management Fee $16,333 $0.72 Gross Expenses $182,164 $7.98 Net Operating Income $383,695 $16.82 16 FINANCIAL ANALYSIS | RENT ROLL Uptown Center 613 & 617 Uptown Boulevard, Cedar Hill, TX 75104 TENANT UNIT % OF LEASE LEASE ANNUAL ESC PRICE LEASE EXPENSE NAME SIZE (SF) GLA START END RENT DATE PER YEAR TYPE OPTION REIMBURSEMENT Allstate Insurance 1,205 5.28 9/1/12 9/30/20 $21,401 $17.76 NNN (1) 5-Yr $6,732.80 Cedar Hill Martial Arts 2,094 9.18 6/8/16 6/30/20 $31,410 $15.00 NNN None $16,032.06 1/1/2020 $16.50 Momentum Family Chiro (1) 3,708 16.25 5/1/16 7/1/26 $62,851 $16.95 NNN (1) 5-Yr @ $18.98 $28,379.18 Bre Nails (1) 1,500 6.57 10/1/15 1/31/26 $33,000 $22.00 NNN (2) 5-Yr ($26 & $28) $11,473.92 9/1/2020 $23.20 Mane & Groom Barber (1) 1,500 6.57 10/10/17 10/31/20 $22,200 $14.80 NNN (3) 3-Yr ($15.60, $12,315.47 $17.16, $18.87) Edible Arrangements (1) 1,530 6.71 6/30/08 4/30/29 $28,611 $18.70 NNN (1) 10-Yr ($22 Yrs 1-5; $11,718.42 1/1/2024 $20.00 $24.20 Yrs 6-10) Key Pharmacy (1) 3,283 14.39 10/1/18 1/31/24 $52,528 $16.00 NNN (1) 5-Yr @ $19/$20/$21 $26,213.38 2/1/2021 $17.00 2/1/2023 $18.00 (1) Leases have a Personal Guarantee.