McKINNEY 121 STRIP McKINNEY, TX (DALLAS MSA) SUBJECT PROPERTY PRICING & FINANCIAL ANALYSIS McKINNEY 121 STRIP McKinney 121 Strip 8480 TX-121 McKinney, TX 75070 OFFERING SUMMARY Price $2,735,000 Cap Rate 7.00% Net Operating Income $191,455 Price PSF $392.11 Occupancy 100.0% Year Built 2016 Gross Leasable Area 6,975 SF Lot Size 0.77 Acres FINANCIAL ANALYSIS 2 PRICING & FINANCIAL ANALYSIS McKINNEY 121 STRIP PROJECTED INCOME & EXPENSES CURRENT PSF EXPENSES CURRENT PSF Base Rent - Occupied Space 100% 192,033 $27.53 Real Estate Taxes $33,307 $4.78 Base Rent - Lease Up Space 0% $0.00 $0.00 Insurance $2,764 $0.40 GROSS POTENTIAL RENT $192,033 $27.53 CAM Expense Reimbursements Fire Alarm Monitoring $455 $0.07 Real Estate Taxes $33,307 $4.78 Landscaping $4,316 $0.62 Insurance $2,764 $0.40 Trash Disposal $2,196 $0.31 CAM $12,310 $1.76 Gas $655 $0.09 Mgmt. Fee $3,567 $0.51 Sewer / Stormwater Drainage $1,054.70 $0.15 Total Expense Reimbursements $51,947 $7.45 Water Building $666.25 $0.10 GROSS POTENTIAL INCOME $243,981 $34.98 Total CAM $11,931 $1.71 Vacancy Factor 0.00% $0.00 $0.00 Management Fee 1.85% $4,524 $0.65 EFFECTIVE GROSS REVENUE $243,981 $34.98 Total Expenses $52,525 $7.53 Operating Expenses Real Estate Taxes ($33,307) ($4.78) Insurance ($2,764) ($0.40) For Financing Options, Please Contact: CAM ($11,931) ($1.71) Greg Holley | Managing Partner High St Capital Mgmt. Fee 1.85% ($4,524) ($0.65) (O) 469-998-7200 | (C) 714.514.2990 [email protected] Total Recoverable Expenses ($52,525) ($7.53) Net Operating Income $191,455 $27.45 FINANCIAL ANALYSIS 3 RENT ROLL McKINNEY 121 STRIP Escalation Escalation Suite Tenant SQ FT % of SQFT Start End Annual Rent PSF Options Date Amount 101 Sprint 1,475 21.1% 1/27/2017 1/31/2027 $47,200 $32.00 11/1/2021 $35.00 2 x 5 102-104 Anytime Fitness 5,500 78.9% 7/9/2018 7/8/2024 $143,000 $26.00 8/9/2021 $28.00 1 x 5 Occupied 6,975 100.0% $190,200 $27.27 Vacant 0 0.0% Total 6,975 100.0% Lease Notes: • The analysis date for the Income & Expenses is June, 24 2020. This takes into consideration a one-year hold from such date and any recent escalations within the following year. • Sprint has a termination right after the 5th year of their lease. LL must be notified by 11/13/2021 if they are vacating. • Sprint and Anytime Fitness both have a 5% non cumulative cap on controllable CAM. TENANT INFORMATION Tenant Sprint Corporate/Franchise Corporate Locations Approx. 3,900 Sprint Locations, with Approx. 20,100 T-Mobile Locations Public/Private Public (NASDAQ: TMUS) Line of Business Sprint was an American telecommunications company and is a current brand of T-Mobile US for wireless and internet services. It was the fourth-largest mobile network operator in the United States and served 54.3 million customers as of June 30, 2019, before its acquisition by T-Mobile on April 1, 2020. Currently, Sprint is an effective subsidiary of T-Mobile until the Sprint brand is officially phased out. Tenant Anytime Fitness Corporate/Franchise Franchise Locations Approx. 4,500 Locations Worldwide Public/Private Private Line of Business Anytime Fitness is a 24-hour health and fitness club headquartered in Woodbury, Minnesota. The company, founded in 2002, operates over 4,500 franchised locations across the United State and 50 countries worldwide. The gym facilities are open 24 hours a day, 365 days of the year. Members have secure access to all facilities (including during unstaffed hours) with a computerized key fob. FINANCIAL ANALYSIS 4 INVESTMENT HIGHLIGHTS McKINNEY 121 STRIP • 100% Occupied, Two-Tenant Retail Strip SNAPSHOT • Long-Term, 10-Year Leases with Rent Escalations in Primary Terms • Sprint and T-Mobile Announced Merger of Their Companies. T-Mobile has Elected to Rebrand this Site with New Signage, Showing Commitment to the Location. • Shadowed Anchored to McKinney Towne Crossing, a 500k+ SF Shopping Estimated Vehicles Average Household Center at the Intersection of Custer Rd and Texas State Highway 121 Per Day Income • Easy Access and Visibility to McKinney Towne Crossing and On-Ramp to TX-121 117,292 $175,042 • TX-121 is a Major Highway that Connects McKinney to Dallas-Fort Worth International Airport, where Traffic Counts Exceed 117,000 Vehicles per Day • Population in a 5-Mile Radius is over 330,000, with a Growth of Over 125% in the Immediate Area since 2010 and Another 18% Projected by 2025 • The Average Household Income in the Immediate Area is Over $175,000 — Well Over Double the National Average Population Growth Population: 5 Mile • Surrounding National Retailers Include Target, Walmart Supercenter, 2010-2020 Radius Lowe’s Home Improvement, Moviehouse & Eatery, Ross Dress for Less, PetSmart, Dollar Tree, Whataburger, Chick-fil-A, Starbucks, Bank of 125.43% 330,099 America, Wells Fargo and Many, Many More PROPERTY DESCRIPTION 5 SITE PLAN McKINNEY 121 STRIP 7-ELEVEN & EATERY MOVIEHOUSE TX-121 ACCESSROAD SAMRAYBURN TOLLWAY SPRINT FITNESS ANYTIME LOWE’S PROPERTY DESCRIPTION 6 AERIAL MAP McKINNEY 121 STRIP HERITAGE HIGH SCHOOL McKINNEY HIGH SCHOOL WAKELAND STONEBRIDGE RANCH HIGH SCHOOL COUNTRY CLUB INDEPENDENCE HIGH SCHOOL MCKINNEY TPC CRAIG ISD STADIUM TOYOTA RANCH STADIUM CENTENNIAL LIBERTY HIGH SCHOOL HIGH SCHOOL FRISCO HIGH SCHOOL FAIRVIEW TOWN CENTER COLLIN COLLEGE 106,021 VPD FRISCO CAMPUS SITE LEBANON TRAIL ALLEN PREMIUM HIGH SCHOOL OUTLETS THE VILLAGE FORD CENTER 117,292 VPD AT THE STAR AT ALLEN THE CENTRE AT PRESTON RIDGE TWIN CREEKS GOLF COURSE EAGLE STADIUM DR. PEPPER BALLPARK BAYLOR RIDGEVIEW RANCH SCOTT & WHITE GOLF COURSE ALLEN IKEA HIGH SCHOOL STONEBRIAR CENTER 164,000 VPD THE SHOPS JASPER AT LEGACY HIGH SCHOOL LEGACY WEST PROPERTY DESCRIPTION 7 LOCAL MAP McKINNEY 121 STRIP PROPERTY DESCRIPTION 8 REGIONAL MAP McKINNEY 121 STRIP PROPERTY DESCRIPTION 9 MARKET SUMMARY McKINNEY 121 STRIP Dallas - Fort Worth, TX OVERVIEW QUICK STATS Dallas encompasses half of the Dallas-Fort Worth City, Los Angeles, and Chicago) with more than three Metroplex and is the third-largest city in Texas million non-farm jobs. In the latest rankings released No. Fastest Growing MSA in the U.S. from and the ninth-largest city in the United States. in 2018, Dallas was rated as a “beta plus” world city 2010 to 2019 (U.S. Census Bureau) Dallas is home to the third-largest concentration by the Globalization and World Cities Study Group & 1 of Fortune 500 companies in the country and is Network. Dallas is also ranked 14th in world rankings the largest economic center of the Dallas-Fort of GDP by the Organization for Economic Co- Worth metropolitan area. The Metroplex has strong operation and Development. The DFW Metroplex th Largest Metropolitan Area in the submarket occupancy rates, is home to more has one of the largest concentrations of corporate United States shopping centers per capita and has one of the 4 headquarters for publicly traded companies in the largest concentrations of corporate headquarters United States. As of 2020, the city of Dallas has 10 for publicly traded companies in the United States. Fortune 500 companies, and the DFW region as a Fastest Growing Economy in the The city is the largest economic center of the whole has 25. th U.S. (Forbes) 12-county Dallas–Fort Worth–Arlington metropolitan Dallas is the best-ranked city on the Regulatory 5 area, which had a population of 7,573,136 according Climate Index thanks to its efficient local regulations. to the U.S. Census Bureau’s 2019 population Entrepreneurs and small businesses can expect a estimates. From 2010 to 2019, the DFW Metroplex welcoming business environment across all five Fortune 500 Companies Call had the largest numerical population growth of any areas of local regulation. Dallas scores above average DFW Home (American City MSA in the United States. across each meaningful measure of an interaction 25 Business Journals) The metropolitan economy is the fourth-largest that a business has with a local government and third-fastest growing in the United States, with agency through procedure, time, and cost. These a 2017 real GDP of $535.5 billion. In 2018, Dallas rankings reflect the city’s continuing efforts to Home to over 10,000 corporate had both the highest job growth rate and the most develop programs and initiatives to strengthen the headquarters, making it the largest jobs added in the nation, and is the fourth-largest business environment, provide access to capital, and 10K concentration in the U.S. employment center in the nation (behind New York encourage economic growth at the local level. PROPERTY DESCRIPTION 10 DEMOGRAPHIC STATISTICS McKINNEY 121 STRIP 1 Mile 3 Mile 5 Mile Population: 2025 Projection 10,199 130,388 373,796 2020 Estimate 8,679 113,256 330,099 2010 Census 3,850 69,219 245,610 Growth 2020-2025 17.51% 15.13% 13.24% Growth 2010-2020 125.43% 63.62% 34.40% 2020 Population Hispanic Origin 596 10,327 34,556 2020 Population by Race: White 5,433 71,431 219,166 Black 771 10,501 31,302 Am. Indian & Alaskan 40 580 1,735 Asian 2,193 27,273 67,993 Hawaiian & Pacific Island 12 102 278 Other 230 3,368 9,626 U.S. Armed Forces: 14 100 313 Households: 2025 Projection 3,697 45,790 130,218 2020 Estimate 3,127 39,742 115,154 2010 Census 1,209 23,672 85,701 Growth 2020 - 2025 18.23% 15.22% 13.08% Growth 2010 - 2020 158.64% 67.89% 34.37% Owner Occupied 2,348 27,893 84,835 Renter Occupied 779 11,850 30,319 2020 Avg Household Income $175,042 $152,057 $138,265 2020 Med Household Income $146,256 $125,520 $114,522 2020 Households by Household Inc: <$25,000 30 1,881 6,773 $25,000 - $50,000 192 3,256 12,259 $50,000 - $75,000 397 5,370 16,543 $75,000 - $100,000 268 4,325 13,022 $100,000 - $125,000 375 4,946 15,460 $125,000 - $150,000 354 4,445 12,608 $150,000 - $200,000 515 5,936 16,401 $200,000+ 995 9,582 22,089 Demographic data © CoStar 2020 PROPERTY DESCRIPTION 11 CONFIDENTIALITY AGREEMENT The information contained in the following offering memorandum is proprietary and strictly confidential.