7-eleven ground lease...property profile address 4415 w mockingbird ln., dallas, texas 75209...
TRANSCRIPT
Exclusively Offered By:
Ty Underwood
214-520-8818 ext. 4
Fax: 214-520-8815
SLJ COMPANY, LLC 4311 W. Lovers Lane, Suite 200
Dallas, TX 75209
214-520-8818
7-ELEVEN GROUND LEASE 4415 W MOCKINGBIRD LN., DALLAS, TEXAS 75209
CONFIDENTIAL OFFERING MEMORANDUM
UNSUBORDINATED GROUND LEASE OFFERING
TABLE OF CONTENTS 4415 W MOCKINGBIRD LN | 1
I. 2 EXECUTIVE SUMMARY
II. 3 PROPERTY PROFILE
III. 4 LEASE ABSTRACT
IV. 5 TENANT OVERVIEW
V. 6 LOCATION MAP
VI. 7 AERIAL PHOTOGRAPHS
VII. 10 SITE PLAN & DRAWINGS
VIII. 12 DEMOGRAPHICS
IX. 13 LOCATION OVERVIEW
X. 14 DISCLAIMER & DISCLOSURE
EXECUTIVE SUMMARY & HIGHLIGHTS
EXECUTIVE SUMMARY
SLJ Company, LLC (“SLJ”) has been exclusively retained
to offer 7-Eleven, a corporately guaranteed
unsubordinated ground lease offering located at 4415
W Mockingbird Ln. in Dallas, Texas. Located 0.25
miles east of Dallas Love Field Airport, 7-Eleven is
positioned along an established retail corridor with
exposure to combined traffic counts of approximately
47,654 vehicles per day. 7-Eleven is situated at the
signalized intersection of W Mockingbird Ln. and Roper
St. with access points from both roads. 7-Eleven has a
new 10 year ground lease with 7-Eleven, Inc. 7-Eleven
is an international brand name operating over 37,000
convenience stores worldwide. The ground lease has
10% rent escalations every 5 years and 4, five-year
option periods. 7-Eleven is anticipated to open in April
2016.
The 7-Eleven is located in a densely populated area
with over 138,000 and 365,000 people residing within
a 3 and 5 mile radii respectively. Additionally, average
annual household incomes exceed $108,000 within a
3 mile radii which is more than double the national
average. Other area nationally recognized retailers in
the trade area include Home Depot, Lowe’s, Starbucks,
Discount Tire, CVS Pharmacy, AT&T, Wells Fargo Bank,
Bank of America, Comerica Bank and Panera Bread,
among others.
Overall, 7-Eleven offers an investor the opportunity to
acquire an irreplaceable infill income producing asset
with a new 10 year unsubordinated ground lease to a
nationally recognized corporate tenant that will benefit
from the economic growth occurring around Dallas
Love Field Airport.
PROPERTY HIGHLIGHTS
IRREPLACABLE INFILL LOCATION Located at the signalized intersection of W Mockingbird Ln. and Roper St.,
7-Eleven sits in a major commercial corridor in Dallas between the Park
Cities Neighborhoods, Dallas Love Field Airport and the Medical District.
LONG-TERM TENANT 7-Eleven has a new 10 year ground lease which runs through March 31,
2026. Additionally, there are 4, five-year renewal option terms available.
UNSUBORDINATED GROUND LEASE 7-Eleven has a corporately guaranteed unsubordinated ground lease with
zero landlord responsibility.
RENT ESCALATIONS 7-Eleven enjoys 10% rent escalations every 5 years.
HIGH TRAFFIC COUNTS With a combined traffic count of approximately 47,654 vehicles per day on
W Mockingbird Ln. and Lemmon Ave., 7-Eleven has tremendous exposure
to vehicular traffic.
STRONG DEMOGRAPHICS With approximately 138,779 and 365,753 residing within a 3 and 5 mile
radii of 7-Eleven respectively, the Property benefits from a large pool of
consumers within close proximity. Additionally, the average household
income within a 3 mile radius of 7-eleven is $108,380 which is more than
double the national average.
MANY AREA TRAFFIC DRIVERS Dallas Love Field Airport, Dallas Medical District, BMW of Dallas, Park
Place Mercedes/Porsche/Aston Martin, Sewell Cadillac/GMC/Lexus, LA
Fitness, Home Depot, Lowe’s, Starbucks, Comerica Bank, CVS Pharmacy,
AT&T, Wells Fargo Bank, among many others, are located along W
Mockingbird Ln. and Lemmon Ave.
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PROPERTY PROFILE
ADDRESS 4415 W Mockingbird Ln., Dallas, Texas 75209
LOCATION 7-Eleven is located at the northwest corner of W Mockingbird Ln. and Roper St., in Dallas, Texas.
BUILDING AREA Approximately 3,010 Square Feet
YEAR BUILT To Be Completed in April 2016
LAND AREA ±29,650 Square Feet (0.680 Acres)
TRAFFIC COUNTS W Mockingbird Ln: 23,749 VPD (2014)
Lemmon Ave: 23,905 VPD (2014)
POINTS OF INTEREST/NEIGHBORING RETAILERS Dallas Love Field Airport, The Medical District, BMW of Dallas, Park Place
Mercedes/Porsche/Aston Martin, Sewell Cadillac/GMC/Lexus, LA Fitness, Home Depot, Lowe’s,
Starbucks, Comerica Bank, CVS Pharmacy, AT&T, Wells Fargo Bank, among many others.
4415 W MOCKINGBIRD LN | 3
LEASE ABSTRACT 4415 W MOCKINGBIRD LN | 4
OFFERING PRICE $2,572,000
CAP RATE 3.50%
TENANT 7-Eleven, Inc.
NET OPERATING INCOME $90,000
RENT ESCALATIONS 10% every 5 years
BASE LEASE TERM 10 Years
RENEWAL OPTIONS Four, 5-Year Options
LEASE TYPE Corporate Unsubordinated Ground
Lease
LEASE COMMENCEMENT April 1, 2016
LEASE EXPIRATION (PRIMARY TERM) March 31, 2026
RENT SCHEDULE
LEASE YEAR ANNUAL RENT MONTHLY RENT
1-5 (Initial Term) $90,000.00 $7,500.00
6-10 (initial Term) $99,000.00 $8,250.00
11-15 (First Extended Term) $108,900.00 $9,075.00
16-20 (Second Extended Term) $119,790.00 $9,982.50
21-25 (Third Extended Term) $131,769.00 $10,980.75
26-30 (Fourth Extended Term) $144,945.90 $12,078.82
TENANT OVERVIEW
CORPORATE SUMMARY The brand name 7-Eleven is now part of an international chain of convenience stores, operating under
Seven-Eleven Japan Co., Ltd., primarily operating as a franchise. It is the largest chain store with more
than 37,000 outlets operating around the world, surpassing the previous record-holder McDonald’s
Corporation in 2007 by approximately 1,000 retail stores. Its stores are located in eighteen countries,
with its largest markets being Japan, the United States, Canada, the Philippines, Hong Kong, Taiwan,
Malaysia and Thailand. 7-Eleven, Inc. as a former U.S.-originating company, is a subsidiary of Seven-
Eleven Japan Co., Ltd, which in turn is owned by Seven & I Holdings Co. of Japan. The US chain has its
headquarters in downtown Dallas, Texas approximately 4 miles from the subject property.
7-Eleven also is one of the nation’s largest independent gasoline retailers. Its company’s name was
changed from The Southland Corporation to 7-Eleven, Inc. after approval by shareholders on April 28,
1999.
7-Eleven was founded in 1927 in Dallas, Texas. The company pioneered the convenience store concept
during its first years of operation as an ice company when its retail outlets began selling milk, bread and
eggs as a convenience to customers. The name 7-Eleven originated in 1946 when the stores were open
from 7 a.m. to 11 p.m. Today, offering customers 24-hour convenience, seven days a week.
7-Eleven focuses on meeting the needs of convenience-oriented customers by providing a broad
selection of fresh, high-quality products and services at everyday fair prices, speedy transactions and a
clean and friendly shopping environment. Each store’s selection of about 2,500 different products and
services is tailored to meet the needs and preferences of local customers. Stores typically vary in size
from 2,400 to 3,000 square feet and are most often located on corners for great visibility and easy
access.
7-Eleven operates, franchises and licenses more than 7,000 stores in North America. Of the close to
5,400 stores the company operates and franchises in the United States, more than 3,600 are franchised.
Internationally, 7-Eleven licensees and affiliates operate approximately 34,000 7-Eleven and other
convenience stores in countries including Japan, Australia, Taiwan, Singapore, Philippines, Sweden,
Denmark, South Korea, Thailand, Norway, Turkey, Malaysia, China, Hong Kong and the U.S. territory of
Puerto Rico.
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FOUNDED 1927
HEADQUARTERS Dallas, Texas
LOCATIONS 37,000+
Ownership Private
S&P RATING AA-
WEBSITE www.7-Eleven.com
LOCATION MAP 4415 W MOCKINGBIRD LN | 6
AERIAL PHOTOGRAPH 4415 W MOCKINGBIRD LN | 7
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AERIAL PHOTOGRAPH 4415 W MOCKINGBIRD LN | 9
SITE PLAN 4415 W MOCKINGBIRD LN | 10
STORE ELEVATION 4415 W MOCKINGBIRD LN | 11
DEMOGRAPHICS
RADIUS 1 MILE 3 MILE 5 MILE
2015 Total Population 12,855 138,779 343,087
2015 Daytime Population 18,707 221,926 635,571
2015 Estimated Households 5,286 59,502 146,677
RADIUS 1 MILE 3 MILE 5 MILE
2015 Avg Household Income $89,471 $108,380 $96,409
INCOME
POPULATION
AGE
RADIUS 1 MILE 3 MILE 5 MILE
2015 Median Age Estimate 37 36 35
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LOCATION OVERVIEW
INTRODUCTION The dynamic urban neighborhood that includes Dallas Love Field Airport and the Medical District
continues to experience growth and vibrancy. Multifamily residential in the surrounding
neighborhoods continues to expand, with significant growth along Maple Avenue in the past few
years. Between the most recently constructed complexes and the developments currently being
planned, there are over 6,000 residential units being added to the area. The completion of the
DART Green Line adds a convenient access to the metro area. The 37-acre West Love
development at Mockingbird and Maple is currently under construction. The project will include
1,000 new residential units, a national dual-branded hotel and approximately 80,000 square feet
of retail.
DALLAS LOVE FIELD AIRPORT Love Field is going through a complete revitalization, The Love Field Modernization Program
(LFMP) has renovated and expanded Love Field - creating a cohesive, modern facility that serves
the needs of Dallas citizens and travelers for many years to come. The LFMP renovations include a
new centralized concourse with 20 gates, a remodeled lobby, expanded baggage claim area and a
new ticketing wing. Southwest Airlines’ traffic has increase 60% on an annualized basis.
MEDICAL DISTRICT The Medical District continues to flourish and expand with the recent completion of two new
hospitals. The brand new $1.3 billion dollar Parkland Memorial Hospital opened in August of
2015. The hospital averages more than 1 million patient visits annually and the 2.8 million
square-foot facility is equipped with 862 single-patient rooms, a Level I Trauma Center, the second
largest civilian burn center in the U.S. and a Level III Neonatal Intensive Care Unit. UT
Southwestern’s new $800 million state-of-the-art medical facility – the William P. Clements Jr.
University Hospital – is rapidly changing the West Campus skyline. The 12-story, 1.3 million
square-foot hospital opened in late 2014. A 500,000-square-foot biotechnology park on 13 acres,
called BioCenter at Southwestern Medical District, is attracting innovative biotech companies to
the area, as well as increasing research opportunities.
MEDICAL DISTRICT DATA
390 acres in size 3 major hospital systems
+/- 30,032 total employees 4,533 students/residents and fellows
6,000 visits per day to clinics and ER’s 2,239,690 annual visits in 2013
1,955 licensed beds and growing 90,367 patients admitted in 2013
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DISCLAIMER & DISCLOSURE
The material contained in this Memorandum is
confidential, furnished solely for the purpose of
considering an investment in the properties described
herein, and is not to be used for any other purpose, or
made available to any other person without the
express written consent of the SLJ Company, LLC. The
material is based, in part, upon information obtained
from third party sources, which SLJ Company, LLC
deems to be reliable. However, no warranty or
representation is made by SLJ Company, LLC or its
affiliates, agents, or representations as to the
accuracy or completeness of the information
contained herein. Prospective investors should make
their own investigations, projections, and conclusions
regarding this investment.
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