hillsboro retail center - hillsboro, tx

HILLSBORO RETAIL CENTER

HILLSBORO, TX


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2This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2015 Vitorino Group

PRICING & FINANCIAL ANALYSIS

Hillsboro Retail Center303-305 Coke StreetHillsboro, TX 76645

Offering Summary

Price $2,290,000

Cap Rate 7.50%

Net Operating Income $171,838

Price PSF $145.40

Occupancy 100.0%

Year Built 2007

Gross Leasable Area 15,750 SF

Lot Size 1.83 Acres


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PRICING & FINANCIAL ANALYSIS

incOme & expenSeS current pSf

Base Rent - Occupied Space 100% $188,110 $11.94

Base Rent - Lease Up Space $0 $0.00

GROSS POTENTAL RENT $188,110 $11.94

Exp. Reimb.

Real Estate Taxes $46,035 $2.92

Insurance $5,125 $0.33

CAM $21,176 $1.34

Mgmt. Fee $9,012 $0.57

Total Exp. Reimb. $81,348 $5.16

GROSS POTENTIAL INCOME $269,458 $17.11

Vacancy Factor (economic) 5.00% ($13,473) ($0.86)

EFFECTIVE GROSS INCOME $255,985 $16.25

Expenses

Real Estate Taxes ($46,035) ($2.92)

Insurance ($5,125) ($0.33)

CAM ($23,556) ($1.50)

Mgmt. Fee (% of GPI) 3.50% ($9,431) ($0.60)

Total Expenses ($84,147) ($5.34)

NET OPERATING INCOME $171,838

expenSeS current pSfReal Estate Taxes $46,035 $2.92

Insurance $5,125 $0.33

CAM

Lawn $3,925 $0.25

Parking Lot R&M $401 $0.03

Parking Lot Sweeping $2,252 $0.14

Pest Control $912 $0.06

Electricity $2,919 $0.19

Water & Dumpster $13,148 $0.83

Total CAM $23,556 $1.50

Management Fee (% of GPI) 3.50% $9,431 $0.60

TOTAL EXPENSES $84,147 $5.354


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RENT ROLL

Suite tenant Sq ft% Of Sq ft

Start endannual

rentpSf eScalatiOn

date

eScalatiOn amOunt

OptiOnSleaSe

type

303-100 Anytime Fitness 5,010 31.8% 5/1/2016 4/30/2021 $55,110 $11.00 5/1/2018 $12.00 2 x 5 NNN

303-130 Edward Jones(1) 1,080 6.9% 6/1/2009 5/31/2019 $16,200 $15.00 - - - NNN

303-140 Deluxe Hair & Nail Salon 1,610 10.2% 9/1/2012 8/31/2017 $22,540 $14.00 - - - NNN

305-100 First Central Credit Union 2,310 14.7% 7/1/2012 6/30/2017 $20,760 $8.99 7/1/2017 $12.00 1 x 5 NNN

305-120 Check 'n Go 1,330 8.4% 1/1/2008 12/31/2018 $19,950 $15.00 - - - NNN

305-130 Jackson Hewitt 1,120 7.1% 12/1/2007 5/31/2018 $15,680 $14.00 6/1/2018 FMV 1 x 3 NNN

305-140 Sally Beauty Supply 1,680 10.7% 12/1/2014 11/30/2019 $20,160 $12.00 12/1/2019 $13.25 2 x 5 NNN

305-140 Anytime Fitness(2) 1,610 10.2% 7/1/2016 4/30/2021 $17,710 $11.00 5/1/2018 $12.00 - NNN

Occupied 15,750 100.0% $188,110

Vacant 0 0.0%

Total 15,750 100.0%

NOTES: (1) Edward Jones: Lease termination right with 90 days prior notice and 3 month’s rent penalty(2) Anytime Fitness (small space): Lease termination right with 30 days prior notice(3) Sally Beauty, Anytime Fitness, Anytime Fitness (small space): 5% annual cap on controllable CAM expenses


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TENANT INFORMATION

Check ‘n Go was founded with one purpose in mind: provide financial solutions to the problems ignored by “traditional” lenders, such as banks. A payday loan company and lender, they’ve been in operation for almost 20 years. They opened their doors in 1994 and they still receive a majority of our business from payday loans, installment loans, and check cashing services. Nearly two decades later, Check ‘n Go remains an innovative payday loan lender.

tenant Overview

Tenant Check ‘n Go

Ownership Private

Years In Business 22 Years

Number of Locations 1,000+

Headquarters Cincinnati, OH

Website www.fedex.com

Ranked #1 on Entrepreneur magazine’s prestigious “Top Global Franchise” list, Anytime Fitness is the fastest-growing gym franchise in the world, with nearly 3,000 gyms serving more than 2,600,000 members on five continents. Open 24 hours a day, 365 days a year, Anytime Fitness prides itself on providing its members with convenient fitness options and friendly, personal service in well-maintained facilities which feature top-quality exercise equipment. Gyms are now open in all 50 states, Canada, Mexico, Australia, New Zealand, England, Scotland, Ireland, Grand Cayman, Poland, the Netherlands, Spain, Qatar, India, Chile, Japan, Singapore, Malaysia, Hong Kong, China, Taiwan, Belgium and the Philippines. All franchised gyms are individually owned and operated. Join one gym and use them all.

tenant Overview

Tenant Anytime Fitness

Ownership Private



Headquarters Hastings, MN

Website www.anytimefitness.com

Edward D. Jones & Co., L.P., since 1995 simplified as Edward Jones is a financial services firm headquartered in Des Peres, Missouri, United States and serves investment clients in the U.S. and Canada, through its branch network of more than 12,000 locations and currently have relationships with nearly 7 million clients and $914 billion asset under management worldwide. The firm focuses solely on individual investors and small-business owners. Edward Jones is a subsidiary of The Jones Financial Companies, L.L.L.P., a limited liability limited partnership owned only by its employees and retired employees and is not publicly traded

tenant Overview

Tenant Edward D. Jones & Co., L.P.

Ownership The Jones Financial Companies, L.L.L.P.



Headquarters Des Peres, MO

Website www.edwardjones.com


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TENANT INFORMATION

Jackson Hewitt Tax Service Inc. is the second-largest tax-preparation service in the United States; responsible for preparing over 2.5 million computerized federal, state, and local individual income-tax returns each year. The company is based in Jersey City, New Jersey. It operated more than 6,800 franchised and company-owned locations throughout the United States, including nearly 3,000 located in Walmart stores nationwide, and more than 400 Sears stores in the United States and Puerto Rico for the 2014 tax season. Jackson Hewitt offers free electronic filing, tax-preparation training, and tax audit representation. In January 1998, the Cendant Corporation, a consumer conglomerate, purchased Jackson Hewitt in a transaction valued at approximately $480 million. In 2004, Jackson Hewitt Tax Service Inc. was spun off as a separate company.

tenant Overview

Tenant Jackson Hewitt Tax Service, Inc.

Ownership Private



Headquarters Jersey City, NJ

Website www.jacksonhewitt.com

tenant Overview

Tenant Sally Beauty Holdings, Inc.

Ownership Public (NYSE: SBH)



Headquarters Denton, TX

Website www.sallybeautyholdings.com

Sally Beauty Holdings, Inc. (NYSE: SBH) is an international speciality retailer and distributor of professional beauty supplies. Through the Sally Beauty Supply and Beauty Systems Group businesses, the Company sells and distributes through over 4,000 stores, including approximately 200 franchised units, throughout the United States, the United Kingdom, Belgium, Canada, Chile, Puerto Rico, Mexico, France, Ireland, Spain and Germany. Sally Beauty Supply stores offer more than 6,000 products for hair, skin, and nails through professional lines such as Clairol, L’Oreal, Wella, and Conair, as well as an extensive selection of proprietary merchandise. Beauty Systems Group stores, branded as CosmoProf or Armstrong McCall stores, along with its outside sales consultants, sell up to 9,800 professionally branded products including Paul Mitchell, Wella, Sebastian, Goldwell, and TIGI which are targeted exclusively for professional and salon use and resale to their customers.


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INVESTMENT HIGHLIGHTS

• 100% Leased Walmart Peripheral Center - NNN Leases

• Recently Constructed, High Quality Tilt-Wall Buildings

• High Capacity Grease Trap with Existing Lines Serving Each Space in the South Building, Allowing for Multiple Restaurants

• Surrounding National Retailers Include Walmart Supercenter, Wells Fargo, McDonald’s, Dollar Tree, Sonic, IHOP, Jack in the Box, AT&T and Many Others

• Hillsboro is one of the Most Frequented Stops by Commuters Along the Texas I-35 Corridor


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AERIAL MAP

INTE

RSTA

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35W

CORSICANA HIGHWAYC

OK

E S

T

HillsboroElementary

School

HillsRegionalHospital


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LOCAL MAP


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REGIONAL MAP


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MARKET SUMMARY

HILLSBORO, TX

Hillsboro is a city in and the county seat of Hill County in Central Texas. The population was 8,456 at the 2010 census.

Hillsboro, located on Interstate 35 where I-35E and I-35W split south of the Dallas–Fort Worth metroplex, is the primary center for trade and commerce in Hill County. It is located almost midway between the Metroplex and Waco, and is the gateway to the popular Lake Whitney. There are many antique stores located downtown, and a popular outlet mall is located along the Interstate, surrounded by numerous hotels and motels.

The city is known for its abundance of restored Victorian homes and its historic county courthouse, which on January

1, 1993 was heavily damaged by an electrical fire. It was rebuilt, courtesy of donations from around the world and two concerts sponsored by Hill County native Willie Nelson. The courthouse won the Downtown Association’s 1999 award for “Best Restoration”. The renovation sparked an interest in restoring Texas’s historic courthouses. The Hill County courthouse is eight miles from Willie Nelson’s hometown, Abbott.


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DEMOGRAPHIC SUMMARY

PoPulation

HouseHolds

income

Race and etHnicity

Housing

emPloyment

Geography: 10 miles

In the identified area, the current year population is 13,576. The rate of change since 2000 was 5.4%. The five-year projection for the population in the area is 13,760 representing a change of 1.4% from 2015 to 2020. Currently, the population is 49.8% male and 50.2% female. The median age in this area is 36.7, compared to the U.S. median agoe of 37.9.

There are currently 4,837 households in your selected georgraphy. The number of households has changed by 4.5% since 2000. It is estimated that the number of households in your area will be 4,912 five years from now, which represents a change of 1.6% from the current year. The average household size in your area is 2.70 persons.

In 2015, the median household income for your selected georgraphy is $37,647, compare this to the Entire U.S. average, which is currently $53,217. It is estimated that the median household income in your area will be $46,068 five years from now, which represents a change of 22.4% from the current year.

The current year per capita income in your area is $18,840, compare this to the Entire U.S. average, which is $28,597. The current year average household income in your area is $51,845, compare this to the Entire U.S. average, which is $74,699.

The current year racial makeup of your selected area is as follows: 72.6% White, 10.7% Black, 0.6% Native American and 0.7% Asian/Pacific Islander. Compare these to the Entire U.S. Averages which are: 71.60% White, 12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 32.0% of the current year population in your selected area. Compare this to the Entire U.S. average of 17.6%.

In 2015, there were 3,211 owner occupied housing units in your area and there were 1,627 renter occupied housing units in your area. Median home value in the area is $117,135, compared to a median home value of $200,006 for the U.S.

In 2015, there are 5,807 employees in your selected area, this is also known as the daytime population. Currently, 46.2% of employees are employed in white-collar occupations in this geography, and 34.1% are employed in blue-collar occupations. In 2015, unemployment in this area is 3.7%.

Demographic data © 2015 esri


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DEMOGRAPHIC STATISTICS

traffic cOuntS

incOme 1 mile 3 mileS 5 mileS

$ 0 - $14,999 19.2% 18.5% 15.7%

$ 15,000 - $24,999 17.1% 16.7% 15.4%

$ 25,000 - $34,999 18.3% 18.1% 16.9%

$ 35,000 - $49,999 9.1% 9.1% 9.4%

$ 50,000 - $74,999 18.0% 18.2% 19.5%

$ 75,000 - $99,999 10.1% 10.5% 12.2%

$100,000 - $149,999 6.6% 7.1% 8.9%

$150,000 - $199,999 0.8% 0.8% 1.0%

$200,000 + 0.8% 0.9% 1.1%

2015 Median Household Income $31,848 $32,620 $37,647

2015 Per Capita Income $16,295 $16,789 $18,840

2015 Average Household Income $46,092 $47,228 $51,845

pOpulatiOn 1 mile 3 mileS 5 mileS

2000 Population 8,825 9,334 12,882

2010 Population 9,018 9,587 13,482

2015 Population 8,877 9,480 13,576

2020 Population 8,855 9,487 13,760

HOuSeHOldS 1 mile 3 mileS 5 mileS

2000 Households 3,139 3,331 4,626

2010 Households 3,123 3,341 4,792

2015 Households 3,072 3,304 4,837

2020 Households 3,066 3,309 4,912

2015 Daytime Population 6,813 7,308 10,679

2015 Average Household Size 2.77 2.75 2.70

2010 Owner Occupied Housing Units 52.0% 53.1% 58.3%

2010 Renter Occupied Housing Units 33.0% 31.9% 27.1%

2010 Vacant 15.0% 15.0% 14.6%



2015 Vacant 17.0% 16.8% 15.3%



2020 Vacant 17.7% 17.4% 15.3%9,200

46,000

The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Vitorino Group and it should not be made available to any other person or entity without the written consent of Vitorino Group. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Vitorino Group.

This offering memorandum has been prepared to provide summary, unverified financial and physical 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 diligence investigation. Vitorino Group has not made any investigation, and makes no 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 property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, 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 offering memorandum has been obtained from sources we believe to be reliable; however, Vitorino Group has not verified, and will not verify, any of the information contained herein, nor has Vitorino Group 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. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE VITORINO GROUP AGENT FOR MORE DETAILS.

CONFIDENTIALITY AGREEMENT

Vitorino Group hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, the Vitorino Group has not and will not verify any of this information, nor has the Vitorino Group conducted any investigation regarding these matters. The Vitorino Group makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. The Vitorino Group expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release The Vitorino Group and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

Net Lease Disclaimer

Before working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner’s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker

who acts as a buyer’s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly.

IF THE BROKER REPRESENTS THE OWNER:The broker becomes the owner’s agent by entering into an agreement with the owner, usually through a written - listing agreement, or by agreeing to act as a subagent by accepting an offer of subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner’s agent anything the buyer would not want the owner to know because an owner’s agent must disclose to the owner any material information known to the agent.

IF THE BROKER REPRESENTS THE BUYER:The broker becomes the buyer’s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer’s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer’s agent anything the owner would not want the buyer to know because a buyer’s agent must disclose to the buyer any material information known to the agent.

IF THE BROKER ACTS AS AN INTERMEDIARY:A broker may act as an intermediary between the parties if the broker complies with The Texas Real Estate License Act. The broker must obtain the written consent of each party to the transaction to act as an

Approved by the Texas Real Estate Commission for Voluntary Use Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records.

Information About Brokerage Services

intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermediary in a transaction:

With the parties’ consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party.

If you choose to have a broker represent you, you should enter into a written agreement with the broker that clearly establishes the broker’s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding.

(1) shall treat all parties honestly;(2) may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner;(3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and(4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property.

exclusively listed

469.844.8880 | VITORINOGROUP.COM

hillsboro retail center - hillsboro, tx

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