OAK CREEK - LoopNet · 2019-03-28 · OAK CREEK OFFERING MEMORANDUM 7 Garland Independent School District offers a "Choice of School" program, allowing residents to choose the best

NICOLAS BROWNAdvisor

[email protected]

BYRON GRIFFITHAdvisor

[email protected]

TODD FRANKS, CCIMManaging Director

[email protected]

For more information, contact:

OFFERING MEMORANDUM

OAK CREEK

CONTENTSProperty Overview ............... 6-7

Property Photos ................10-13

Financial Overview ..........16-21

Comparables ....................24-27

Aerial Overview ..................... 30

Market Overview ..............34-37

Disclaimer|Disclosure ........... 38

GREYSTONE INVESTMENT SALES GROUP6320 LBJ Freeway, Suite 228

Dallas, TX 75240214-206-9559

www.greycoadvisors.com

OAK CREEKAPARTMENTSOFFERING MEMORANDUM

4 GREYSTONE | INVESTMENT SALES GROUP 214-206-9559

OAK CREEK OFFERING MEMORANDUM 5

PROPERTYOVERVIEW


PROPERTY OVERVIEWSVN | Investment Sales Group is proud to announce the exclusive listing of Oak Creek Apartments located in Garland, TX, a suburb located immediately north east of Dallas, TX. Constructed in 1964, Oak Creek is comprised of four 2-story brick and siding buildings underneath a combination pitched composition and flat roofs. The property has a favorable unit mix comprised of 85% two and three bedroom units. The property is master metered for all utilities and operates as "All Bills Paid," with HVAC and hot water being provided though a two pipe chiller. Though the property operates as "All Bills Paid" there are submeters which a new owner could utilize to have the residents be responsible for the own electric bills.

STRONG LOCATIONThe location offers easy commuter access to downtown Dallas, which employs more than 135,000 people. It is also located just 11-miles from the Greater Legacy Corridor which is home to the corporate headquarters of Toyota, Boeing, JCPenney, Frito Lay, Ericcson, and more. The Garland market has seen a 10.9% increase in median home value over the past 12 months, and shows no sign of slowing down with Zillow forecast showing it increasing another 10.1% through November of 2019 (Zillow.com - January 2019). The property is also just over 1-mile from historical downtown Garland, which is home to numerous independently owned and operated restaurants, museums, and shops. The property is served by Garland ISD and is just 400 yards from Walnut Glen Elementary School (rated 10 out of 10 on greatschools.com). The site has excellent visibility facing West Walnut Street with over 15,000 vehicles passing by the property each day.

OAK CREEK SUMMARY

Address 2710 W. Walnut Garland, TX 75042

Sale Price Market

Number of Units 109

Rentable SF 90,088 SF

Lot Size ± 3.92 AC

Year Built 1964

Zoning Multifamily

Market DFW

Submarket Garland - Central

Cross Streets West Walnut Street & North Shiloh Road

INVESTMENT HIGHLIGHTS• All Bills Paid property with ability to implement

and utilize the electric submeters

• Onsite laundry facility

• Owner implemented a water conservation

program which will save $82,500/year in water

and sewage costs.

• Value add opportunity by renovating interiors

and exteriors

• Several schools within walking distance, ideal

for families

• Offered free and clear of debt

EXECUTIVE SUMMARY


Garland Independent School District offers a "Choice of School" program, allowing residents to choose the best school for their family's needs. This includes the Walnut Glen Academy Elementary School (Rated a 10 of 10 by GreatSchools.com) just 1/4 of a mile from the property.

DART bus stop located at West Walnut Street and King Lane, provides service to the Spring Valley and Downtown Garland rail stations which connect into downtown Dallas, the Medical District, and DFW Airport via the red and blue rail lines.

Strategically located roughly 2 1/2-miles north of I-635 (Loop) and 2 1/2-miles west of the State Highway 78, providing easy commuter access to the entire DFW Metroplex.

High traffic count of 15,533 cars per day on West Walnut Street making the property highly visible.

Approximately one mile from Historic Downtown Garland which is home to numerous unique shops, restaurants, museums, and galleries that are independently owned and operated.

Approximately 11-miles from the Dallas CBD which employs over 135,000 people and Legacy West.

Desirable submarket with consistent occupancy rates (between 94.5% and 96.2%) and effective rental rates which have increased 6.2% over the past twelve months (properties constructed prior to 1980)

LOCATION HIGHLIGHTS


PROPERTYPHOTOS


AERIAL VIEW TO SOUTHDALLAS CBD


OAK CREEK

S


PROPERTY PHOTOS


INTERIOR PHOTOS


FINANCIALOVERVIEW


One Bedroom15%

Two Bedroom67%

Three Bedroom

18%

One Bedroom Two Bedroom Three Bedroom

Type # Units SF/Unit Total SF Effective Rent Effective $/Sq.Ft.

Market Rent

Market $/Sq.Ft.

Pro Forma Rent

Pro Forma $/Sq.Ft.

1x1 16 568 9,088 $769 $1.35 $795 $1.40 $820 $1.44

2x1 73 840 61,320 $864 $1.03 $875 $1.04 $930 $1.11

3x1 8 960 7,680 $941 $0.98 $975 $1.02 $1,040 $1.08

3X2 12 1,000 12,000 $969 $0.97 $985 $0.99 $1,050 $1.05

TOTAL: 109 826 90,088 $867 $1.05 $883 $1.07 $935 $1.13

UNIT MIX

One Bedroom15%Three Bedroom

18%

Two Bedroom67%

FINANCIAL OVERVIEW


$769$864

$957

$795$875

$981

$820$930

$1,046

$0

$200

$400

$600

$800

$1,000

$1,200

One Bedroom Two Bedroom Three Bedroom

Effective Rent/Unit Market Rent/Unit Pro Forma Rent/Unit

AVERAGE RENT COMPARISON

UNIT MIX

EFFE

CTI

VE

EFFE

CTI

VE

EFFE

CTI

VE

MA

RK

ET

MA

RK

ET

MA

RK

ET

PRO

FO

RM

A

PRO

FO

RM

A

PRO

FO

RM

A

Monthly Rent per Unit


TRENDING ANALYSIS

FINANCIAL OVERVIEW

As of January 2019 T-12 T-6 T-3 T-1 Pro FormaAnnualized $/Unit Annualized $/Unit Annualized $/Unit Annualized $/Unit Projection $/Unit

INCOME

Potential Market Rent $1,154,580 $10,592 $1,154,580 $10,592 $1,154,580 $10,592 $1,154,580 $10,592 $1,223,160 $11,222

Loss-to-Lease/Gain-to-Lease (20,397) (187) (20,397) (187) (20,397) (187) (20,397) (187) 0 0

Gross Potential Revenue $1,134,183 $10,405 $1,134,183 $10,405 $1,134,183 $10,405 $1,134,183 $10,405 $1,223,160 $11,222

Economic Vacancy (62,425) 5.4% (64,686) 5.6% (43,819) 3.8% (53,754) 4.7% (61,158) 5.0%

Concessions (1,218) 0.1% (1,218) 0.1% (1,218) 0.1% (1,218) 0.1% 0 0.0%

Collection Loss / Bad Debt (24,048) 2.1% (24,048) 2.1% (24,048) 2.1% (24,048) 2.1% 0 0.0%

Base Rental Revenue $1,046,492 $9,601 $1,044,232 $9,580 $1,065,099 $9,772 $1,055,164 $9,680 $1,162,002 $10,661

RUB Income 63,119 579 63,119 579 63,119 579 63,119 579 91,260 837

Other Income 32,746 300 32,746 300 32,746 300 32,746 300 32,746 300

Total Other Income $95,865 $879 $95,865 $879 $95,865 $879 $95,865 $879 $124,006 $1,138

Effective Gross Revenue $1,142,357 $10,480 $1,140,097 $10,460 $1,160,964 $10,651 $1,151,029 $10,560 $1,286,008 $11,798

EXPENSES

Repairs & Maintenance 53,422 490 53,422 490 53,422 490 53,422 490 53,422 490

Contract Services 35,690 327 35,690 327 35,690 327 35,690 327 35,690 327

Payroll 109,000 1,000 109,000 1,000 109,000 1,000 109,000 1,000 109,000 1,000

Advertising/Promotions 5,000 46 5,000 46 5,000 46 5,000 46 5,000 46

Administration/Misc. 9,865 91 9,865 91 9,865 91 9,865 91 9,865 91

Electricity 122,911 1,128 122,911 1,128 122,911 1,128 122,911 1,128 122,911 1,128

Water & Sewer 115,531 1,060 115,531 1,060 115,531 1,060 115,531 1,060 115,531 1,060

Gas 30,917 284 30,917 284 30,917 284 30,917 284 30,917 284

Real Estate Taxes 154,045 1,413 154,045 1,413 154,045 1,413 154,045 1,413 154,045 1,413

Insurance 24,772 227 24,772 227 24,772 227 24,772 227 24,772 227

Management Fee (3%) 34,271 314 34,203 314 34,829 320 34,531 317 38,580 354

Total Expenses $695,424 $6,380 $695,356 $6,379 $695,982 $6,385 $695,684 $6,382 $699,733 $6,420

Net Operating Income $446,933 $444,741 $464,982 $455,345 $586,275 * Operating expenses are the Pro Forma expenses.


TRENDING ANALYSIS

As of January 2019 T-12 T-6 T-3 T-1 Pro FormaAnnualized $/Unit Annualized $/Unit Annualized $/Unit Annualized $/Unit Projection $/Unit

INCOME

Potential Market Rent $1,154,580 $10,592 $1,154,580 $10,592 $1,154,580 $10,592 $1,154,580 $10,592 $1,223,160 $11,222

Loss-to-Lease/Gain-to-Lease (20,397) (187) (20,397) (187) (20,397) (187) (20,397) (187) 0 0

Gross Potential Revenue $1,134,183 $10,405 $1,134,183 $10,405 $1,134,183 $10,405 $1,134,183 $10,405 $1,223,160 $11,222

Economic Vacancy (62,425) 5.4% (64,686) 5.6% (43,819) 3.8% (53,754) 4.7% (61,158) 5.0%

Concessions (1,218) 0.1% (1,218) 0.1% (1,218) 0.1% (1,218) 0.1% 0 0.0%

Collection Loss / Bad Debt (24,048) 2.1% (24,048) 2.1% (24,048) 2.1% (24,048) 2.1% 0 0.0%

Base Rental Revenue $1,046,492 $9,601 $1,044,232 $9,580 $1,065,099 $9,772 $1,055,164 $9,680 $1,162,002 $10,661

RUB Income 63,119 579 63,119 579 63,119 579 63,119 579 91,260 837

Other Income 32,746 300 32,746 300 32,746 300 32,746 300 32,746 300

Total Other Income $95,865 $879 $95,865 $879 $95,865 $879 $95,865 $879 $124,006 $1,138

Effective Gross Revenue $1,142,357 $10,480 $1,140,097 $10,460 $1,160,964 $10,651 $1,151,029 $10,560 $1,286,008 $11,798

EXPENSES

Repairs & Maintenance 53,422 490 53,422 490 53,422 490 53,422 490 53,422 490

Contract Services 35,690 327 35,690 327 35,690 327 35,690 327 35,690 327

Payroll 109,000 1,000 109,000 1,000 109,000 1,000 109,000 1,000 109,000 1,000

Advertising/Promotions 5,000 46 5,000 46 5,000 46 5,000 46 5,000 46

Administration/Misc. 9,865 91 9,865 91 9,865 91 9,865 91 9,865 91

Electricity 122,911 1,128 122,911 1,128 122,911 1,128 122,911 1,128 122,911 1,128

Water & Sewer 115,531 1,060 115,531 1,060 115,531 1,060 115,531 1,060 115,531 1,060

Gas 30,917 284 30,917 284 30,917 284 30,917 284 30,917 284

Real Estate Taxes 154,045 1,413 154,045 1,413 154,045 1,413 154,045 1,413 154,045 1,413

Insurance 24,772 227 24,772 227 24,772 227 24,772 227 24,772 227

Management Fee (3%) 34,271 314 34,203 314 34,829 320 34,531 317 38,580 354

Total Expenses $695,424 $6,380 $695,356 $6,379 $695,982 $6,385 $695,684 $6,382 $699,733 $6,420

Net Operating Income $446,933 $444,741 $464,982 $455,345 $586,275 * Operating expenses are the Pro Forma expenses.


8-YEAR CASH FLOW ANALYSIS

ASSUMPTIONS

FINANCIAL OVERVIEW

Assumption Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

Rental Inflation 2.97% 2.88% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%

Vacancy/Concession/Credit Loss 6.34% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%

Other Income Inflation 14.68% 12.80% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%

Expenses Inflation 11.23% 0.34% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%

Real Estate Tax Inflation 49.19% 0.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%

CURRENT YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8

INCOMEPotential Market Rent $1,154,580 $1,188,870 $1,223,160 $1,259,855 $1,297,650 $1,336,580 $1,376,677 $1,417,978 $1,460,517 (Loss to Lease) / Gain to Lease (20,397) 1.8% (10,198) 0.9% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%Gross Potential Revenue1 $1,134,183 $1,178,672 $1,223,160 $1,259,855 $1,297,650 $1,336,580 $1,376,677 $1,417,978 $1,460,517 RENTAL LOSSESVacancy2 (43,819) 3.8% (52,488) 4.4% (61,158) 5.0% (62,993) 5.0% (64,883) 5.0% (66,829) 5.0% (68,834) 5.0% (70,899) 5.0% (73,026) 5.0%Concession (1,218) 0.1% (609) 0.1% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%Collection Loss & Bad Debt3 (24,048) 2.1% (12,024) 1.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%Base Rental Revenue $1,065,099 $1,113,550 $1,162,002 $1,196,862 $1,232,768 $1,269,751 $1,307,843 $1,347,079 $1,387,491 OTHER INCOMEOther Residential Income4 32,746 $300 32,746 $300 32,746 $300 33,729 $309 34,741 $319 35,783 $328 36,856 $338 37,962 $348 39,101 $359RUB Income4 63,119 $579 77,189 $708 91,260 $837 93,998 $862 96,818 $888 99,722 $915 102,714 $942 105,795 $971 108,969 $1,000Total Other Income $95,865 $109,936 $124,006 $127,727 $131,558 $135,505 $139,570 $143,757 $148,070 Effective Gross Revenue $1,160,964 $1,223,486 $1,286,008 $1,324,589 $1,364,326 $1,405,256 $1,447,414 $1,490,836 $1,535,561 EXPENSESRepairs & Maintenance5 $9,000 $83 $53,422 $490 $53,422 $490 $55,025 $505 $56,675 $520 $58,375 $536 $60,127 $552 $61,931 $568 $63,788 $585Contract Services6 19,465 179 35,690 327 35,690 327 36,760 337 37,863 347 38,999 358 40,169 369 41,374 380 42,615 391Payroll7 81,920 752 109,000 1,000 109,000 1,000 112,270 1,030 115,638 1,061 119,107 1,093 122,680 1,126 126,361 1,159 130,152 1,194Advertising/Promotions8 0 0 5,000 46 5,000 46 5,150 47 5,304 49 5,463 50 5,627 52 5,796 53 5,970 55Administration/Misc.9 9,865 91 9,865 91 9,865 91 10,161 93 10,466 96 10,780 99 11,103 102 11,436 105 11,780 108Electricity10 122,911 1,128 122,911 1,128 122,911 1,128 126,599 1,161 130,397 1,196 134,308 1,232 138,338 1,269 142,488 1,307 146,762 1,346Water & Sewer11 198,031 1,817 115,531 1,060 115,531 1,060 118,997 1,092 122,567 1,124 126,244 1,158 130,031 1,193 133,932 1,229 137,950 1,266Gas12 30,917 284 30,917 284 30,917 284 31,845 292 32,800 301 33,784 310 34,797 319 35,841 329 36,917 339Real Estate Taxes13 103,252 947 154,045 1,413 154,045 1,413 158,666 1,456 163,426 1,499 168,329 1,544 173,379 1,591 178,580 1,638 183,938 1,688Insurance14 24,772 227 24,772 227 24,772 227 25,515 234 26,281 241 27,069 248 27,881 256 28,718 263 29,579 271Management Fee (3%)15 0 0 36,705 337 38,580 354 39,738 365 40,930 376 42,158 387 43,422 398 44,725 410 46,067 423Total Operating Expenses $600,134 $5,506 $697,857 $6,402 $699,733 $6,420 $720,725 $6,612 $742,347 $6,811 $764,617 $7,015 $787,556 $7,225 $811,182 $7,442 $835,518 $7,665Replacement Reserves16 27,250 $250 27,250 $250 27,250 $250 27,250 $250 27,250 $250 27,250 $250 27,250 $250 27,250 $250NET OPERATING INCOME $560,830 $498,379 $559,025 $576,614 $594,729 $613,389 $632,608 $652,404 $672,793


1. INCOME Gross Potential Revenue is based on rental rates shown in the unit mix table. Market rents grow 3.0% after Year 2.

2, VACANCYVacancy is currently 3.8%. Vacancy is projected to be 5.0% after Year 1 and thereafter, per lender standards.

3. BAD DEBTUsed T-3 months of bad debt to offset for the excess bad debt due to the manager stealing rents from June thru July.

4. OTHER INCOME & RUB INCOMEOther income is based on T-12 historical incomes. Owner recently increased RUB income 45% which is reflected in the proforma.

5. REPAIRS & MAINTENANCERepairs & maintenance expense is projected to be at $490 per unit.

6. CONTRACT SERVICESContract Services expense is projected to be at $327 per unit.

7. PAYROLLPersonnel expense is projected to be at $1,000 per unit, and grows 3.0% per year.

8. ADVERTISING & PROMOTIONSAdvertising & Promotions expense is projected to be $46 per unit annually and grows 3.0% per year.

9. ADMINISTRATIVE EXPENSESAdministrative expense is based on T-12 historical expenses and grows at 3.0% per year.

10. ELECTRICITYElectricity expense is based on T-12 historical expenses and grows at 3.0% per year.

11. WATER & SEWERWater expense is projected to be reduced by $82,500 to $111,531 and grows 3.0% per year based on an attached study conducted by Save Water Co.

12. GASGas expense is based on T-12 historical expenses and grows at 3.0% per year.

13. REAL ESTATE TAXESIncreased real estate taxes to 70% of the transaction value multiplied by 2018 tax rate of 2.82%. Taxes grow 3.0% per year.

14. INSURANCEInsurance is based on the most recent premium given in financial statement. The expense grows at 3.0% per year.

15. PROPERTY MANAGEMENT FEEProperty management fee is projected to be 3.0% of effective gross revenue.

16. REPLACEMENT RESERVESReplacement reserves are projected to be $250 per unit annually.

* Projected income and expenses in the calculations are according to 2018 National Apartment Association survey of income and expenses for Dallas submarket.

NOTES

CASH FLOW ANALYSIS

Assumption Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

Rental Inflation 2.97% 2.88% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%

Vacancy/Concession/Credit Loss 6.34% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%

Other Income Inflation 14.68% 12.80% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%

Expenses Inflation 11.23% 0.34% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%

Real Estate Tax Inflation 49.19% 0.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%

CURRENT YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8

INCOMEPotential Market Rent $1,154,580 $1,188,870 $1,223,160 $1,259,855 $1,297,650 $1,336,580 $1,376,677 $1,417,978 $1,460,517 (Loss to Lease) / Gain to Lease (20,397) 1.8% (10,198) 0.9% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%Gross Potential Revenue1 $1,134,183 $1,178,672 $1,223,160 $1,259,855 $1,297,650 $1,336,580 $1,376,677 $1,417,978 $1,460,517 RENTAL LOSSESVacancy2 (43,819) 3.8% (52,488) 4.4% (61,158) 5.0% (62,993) 5.0% (64,883) 5.0% (66,829) 5.0% (68,834) 5.0% (70,899) 5.0% (73,026) 5.0%Concession (1,218) 0.1% (609) 0.1% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%Collection Loss & Bad Debt3 (24,048) 2.1% (12,024) 1.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%Base Rental Revenue $1,065,099 $1,113,550 $1,162,002 $1,196,862 $1,232,768 $1,269,751 $1,307,843 $1,347,079 $1,387,491 OTHER INCOMEOther Residential Income4 32,746 $300 32,746 $300 32,746 $300 33,729 $309 34,741 $319 35,783 $328 36,856 $338 37,962 $348 39,101 $359RUB Income4 63,119 $579 77,189 $708 91,260 $837 93,998 $862 96,818 $888 99,722 $915 102,714 $942 105,795 $971 108,969 $1,000Total Other Income $95,865 $109,936 $124,006 $127,727 $131,558 $135,505 $139,570 $143,757 $148,070 Effective Gross Revenue $1,160,964 $1,223,486 $1,286,008 $1,324,589 $1,364,326 $1,405,256 $1,447,414 $1,490,836 $1,535,561 EXPENSESRepairs & Maintenance5 $9,000 $83 $53,422 $490 $53,422 $490 $55,025 $505 $56,675 $520 $58,375 $536 $60,127 $552 $61,931 $568 $63,788 $585Contract Services6 19,465 179 35,690 327 35,690 327 36,760 337 37,863 347 38,999 358 40,169 369 41,374 380 42,615 391Payroll7 81,920 752 109,000 1,000 109,000 1,000 112,270 1,030 115,638 1,061 119,107 1,093 122,680 1,126 126,361 1,159 130,152 1,194Advertising/Promotions8 0 0 5,000 46 5,000 46 5,150 47 5,304 49 5,463 50 5,627 52 5,796 53 5,970 55Administration/Misc.9 9,865 91 9,865 91 9,865 91 10,161 93 10,466 96 10,780 99 11,103 102 11,436 105 11,780 108Electricity10 122,911 1,128 122,911 1,128 122,911 1,128 126,599 1,161 130,397 1,196 134,308 1,232 138,338 1,269 142,488 1,307 146,762 1,346Water & Sewer11 198,031 1,817 115,531 1,060 115,531 1,060 118,997 1,092 122,567 1,124 126,244 1,158 130,031 1,193 133,932 1,229 137,950 1,266Gas12 30,917 284 30,917 284 30,917 284 31,845 292 32,800 301 33,784 310 34,797 319 35,841 329 36,917 339Real Estate Taxes13 103,252 947 154,045 1,413 154,045 1,413 158,666 1,456 163,426 1,499 168,329 1,544 173,379 1,591 178,580 1,638 183,938 1,688Insurance14 24,772 227 24,772 227 24,772 227 25,515 234 26,281 241 27,069 248 27,881 256 28,718 263 29,579 271Management Fee (3%)15 0 0 36,705 337 38,580 354 39,738 365 40,930 376 42,158 387 43,422 398 44,725 410 46,067 423Total Operating Expenses $600,134 $5,506 $697,857 $6,402 $699,733 $6,420 $720,725 $6,612 $742,347 $6,811 $764,617 $7,015 $787,556 $7,225 $811,182 $7,442 $835,518 $7,665Replacement Reserves16 27,250 $250 27,250 $250 27,250 $250 27,250 $250 27,250 $250 27,250 $250 27,250 $250 27,250 $250NET OPERATING INCOME $560,830 $498,379 $559,025 $576,614 $594,729 $613,389 $632,608 $652,404 $672,793


COMPARABLES


★

Property Year Built # Units SF/Unit Total SF Avg Rent/Unit Avg Rent PSF

1 Villa Placita 1966 122 614 21,180 $843 $1.37

2 Creekside 1964 64 697 29,448 $854 $1.23

3 Orchards Hills 1962 50 731 31,650 $898 $1.23

4 Woodgate 1967 253 735 188,160 $903 $1.23

5 Crest Ridge 1965 102 825 84,150 $967 $1.17

6 Casa Del Mar 1975 59 733 43,247 $845 $1.15

7 Forest Gardens 1974 231 814 188,034 $907 $1.11

Average 1968 126 736 83,696 $888 $1.21

Oak Creek 1964 109 826 90,088 $883 $1.07

Variance 90 6,392 (-$5.00) (-$0.14)

OAK CREEK

RENT COMPARABLES

67

425

1 2


Average Rent / PSF Average Rent / Unit

AVERAGE RENT COMPARISON

RENT COMPARABLES

$1.37/SF $1.23/SF $1.23/SF $1.23/SF $1.17/SF $1.15/SF $1.11/SF $1.07/SF

•$843

•$854

•$898

•$903

•$967

•$845

•$907

•$888

Villa Placita Creekside Orchard Hills Wood Gate Crest Ridge Case Del Mar Forest Gardens

Oak Creek


# Property Name Price Bldg. SF Price PSF # Units Price/UnitAverage

Rent/UnitSale Date

1 Deerfield $21,700,000 181,200 $119.76 256 $84,766 $873 18-May

2 Hidden Oaks $19,400,000 184,480 $105.16 208 $93,269 $1,018 17-Oct

3 View at Lake Highlands $25,000,000 232,594 $107.48 292 $85,616 $869 17-Dec

4 Residence/Laverna at Lake Highlands $21,100,000 196,409 $107.43 247 $85,425 $984 17-Mar

5 Chesapeake $10,726,666 117,708 $91.13 128 $83,802 $900 17-Sep

6 Lake Highlands Landing/Vue on Forest $24,000,000 234,946 $102.15 326 $73,620 $771 18-Jun

Average $20,321,111 191,223 $105.52 243 $84,416 $903

Oak Creek $7,900,000 90,088 $87.69 109 $72,477 $883

OAK CREEK

SALE COMPARABLES

2

1

3

4

56


AVERAGE SALE COMPARISON

SALE COMPARABLES

$88.80 $119.76 $105.16 $107.48 $107.43 $91.13 $102.15

$73,394

$84,766

$93,269

$85,616 $85,425 $83,802

$73,620

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

Oak Creek Deerfield/Brooklyn @9670

Hidden Oaks View at Lake Highlands Residence/Lavera atLake Highlands

Chesapeake Lake HighlandsLanding/Vue on Forest

Price Price/Sf Price/Unit

$30,000,000

$25,000,000

$20,000,000

$15,000,000

$10,000,000

$5,000,000

$0

$100,000

$90,000

$80,000

$70,000

$60,000

$50,000

$40,000

$30,000

$20,000

$10,000

$0

Price Price/SF Price/Unit

$88.80 $119.76 $105.16 $107.48 $107.43 $91.13 $102.15

$73,394•

Oak Creek Deerfield/Brooklyn Hidden Oaks Chesapeake Lake Highlands Landing

$84,766•

$93,269•

$85,616•

$85,425• $83,802

•$73,620

•

View at Lake Highlands

Residence/Lavera at Lake Highlands

Sale Price • Price Per Unit Δ Price Per SF



LOCATIONOVERVIEW


BUCKINGHAM RD

WEST WALNUT ST

PLA

NO

RD

JUP

ITE

R R

D

FOREST LN

O Henry Elementary School •

Bradfield Elementary School •

• Jackson Technology Center for Math & Science

• Beaver Technology Center for Math & Science

• Harmony Science Academy

• Bullock Elementary School•

Walnut Glen Academy

• Davis Elementary School

•Karlee290

Employees

Plastipak270

Employees•

Sherwin Williams230 Employees1/2 mile South

Anderson Windows425 Employees1/2 mile South

AREA OVERVIEW


SHIL

OH

RD

GA

RLA

ND

RD

• Jackson Technology Center for Math & Science

• Beaver Technology Center for Math & Science

• Walnut Glen Academy

• Davis Elementary School

•North GarlandHIgh School

•Golden Meadows

Elementary School•

BusseyMiddle School

•Garland

HIgh SchoolKraft Foods

796 Employees

US Foods520

Employees

Epiroc Drilling460 Employees

1 1/2 miles Northwest

Resistol390

Employees

•General

Dynamics275

Employees

Sherwin Williams230 Employees1/2 mile South

HISTORIC DOWNTOWN

GARLAND

SCHOOLS | MAJOR EMPLOYERS

OAK CREEK


MARKETOVERVIEW


MAR

KET

OVE

RVIE

W

MetropolitanStatistical Areas

Change inTotal Population

Percentage ofPopulation Change

Atlanta 89,013 1.51%

Charlotte 49,786 1.89%

Chicago -13,286 -0.14%

Dallas-Fort Worth 146,238 1.97%

Denver 36,379 1.12%

Houston 94,417 1.37%

Los Angeles 25,646 0.19%

New York 45,697 0.22%

Philadelphia 18,968 0.31%

Phoenix 88,772 1.87%

San Diego 20,485 0.61%

San Francisco 28,280 0.59%

COMPONENTS OF POPULATION CHANGE - JULY 1, 2016-JULY 1, 2017Source: ACS 5-year estimates (2012-2017), US Census Bureau

DALLAS-FORT WORTH

BY THE NUMBERS

The Dallas-Fort Worth region offers an attractive quality of life, a strong regional and

state economy, a low cost of living, a skilled labor force, and a pro-business mindset

offering an absence of corporate and personal income taxes.

The region is the nation's fourth-largest metro area positioned in the middle of the

United States, and offers competitive advantages for businesses that locate here. The

region's central location allows it to function as an international distribution hub. DFW

ranks among the top three U.S metropolitan areas for business expansions, relocations

and employment growth.

DFW's young, highly educated workforce of more than 3.8 million people is growing

quickly, providing companies with the abundance of talent they need to make their

businesses successful.


DFW POPULATION

390+RESIDENTS ADDED PER DAY

7,399,662CURRENT RESIDENTS

146,000RESIDENTS WERE ADDED

2017-2018

10,676,844PREDICTION OF

POPULATION BY 2040


Dallas-Fort Worth continues to bring Fortune and Global 500 corporate

headquarters to the region. It's a testament to the dynamic economy in

the region today. DFW is home to 42 Fortune 1,000 headquarters, with

four of those companies being on the Fortune Global 500 list.

Texas is one of three states in the U.S. that have 50 or more Fortune 500

headquarters. At 50, Texas is behind only New York (54) and California

(53). DFW is the third largest metroplex in the country to have more than

20 Fortune 500 headquarters with 22, behind New York-Newark, Jersey

City (69) and Chicago, Naperville, Elgin (33).

Major relocations and expansions have occurred in the past several years

with notable Fortune 500 and Forbes Top Private companies. Recently

companies like Fluor, Comerica, Golden Living and AT&T have moved

to the region joining other industry leaders such as Toyota, Top Golf,

Jamba, and NTT Data. Concurrently BMW, General Motors, Galderma,

Amazon, and Bed Bath & Beyond all have expanded into distribution,

manufacturing, and logistics. Other noteworthy companies such as

American Airlines, Liberty Mutual, State Farm, FedEx, and 7-Eleven have

moved to larger office spaces.

DENTONSally Beauty #592

IRVINGExxon Mobil #4

Fluor #149

Kimberly Clark #155

Celanese #484

Michaels Stores #496

Commercial Metals #535

Flowserve #589

Pioneer Natural Resources #606

Darling Ingredients #665

MCKINNEYTorchmark Corp #580

PLANOJCPenney #221

Alliance Data Systems #378

Yum China Holdings #399

Dr Pepper Snapple Group #416

Rent-A-Center #735

Cinemark Holdings #744

RICHARDSONLennox International #627

Fossil #723

DALLAS-LBJ CORRIDORTexas Instruments #206

Alon USA #605

Atmos Energy #670

Brinker International #684

GRAPEVINE-SOUTHLAKEGamestop #321

Sabre Corp #668

Nationstar Mortgage #852

1

2

3

4

5

6

7

DALLAS LOVE FIELDSouthwest Airlines #138

8

DALLAS-FORT WORTH

42HEADQUARTERS

IN DALLAS- FORT WORTH

FORTUNE 1,000 M

AR

KE

T O

VE

RV

IEW


12 11

10

6

7

8

9

5

4

3

21

DOWNTOWN DALLAS (CBD & UPTOWN)AT&T #9

Energy Transfer Equity #79

Tenet Healthcare #134

Jacobs Engineering #259

Hollyfrontier Corp #274

Dean Foods #351

Builders Firstsource #421

Vista Energy #499

Neiman Marcus #515

Trinity Industries #539

Comerica #736

Primoris Services Corp #938

FORT WORTHAmerican Airlines #67

ARLINGTOND.R. Horton #232

FORT WORTH CBDPier 1 Imports #967

9 10

11

12

Source: DRC Research; Fortune Magazine; Forbes Magazine

DALLAS LOVE FIELDSouthwest Airlines #138

DALLASFORT WORTH

FORTUNE 1,000 HEADQUARTERS IN DFW METRO

1 2

3

4

56

78

910

1112


Disclaimer


The material contained in this Offering Brochure is furnished

solely for the purpose of considering the purchase of the

property within and is not to be used for any other purpose.

This information should not, under any circumstance, be

photocopied or disclosed to any third party without the

written consent of the Greystone Investment Sales Group

Advisor or Property Owner, or used for any purpose

whatsoever other than to evaluate the possible purchase of

the Property.

The only party authorized to represent the Owner in

connection with the sale of the Property is the Greystone

Investment Sales Group Advisor listed in this brochure,

and no other person is authorized by the Owner to provide

any information or to make any representations other than

contained in this Offering Brochure. If the person receiving

these materials does not choose to pursue a purchase of

the Property, this Offering Brochure must be returned to the

Greystone Investment Sales Group Advisor.

Neither the Greystone Investment Sales Group Advisor nor

the Owner make any representation or warranty, express

or implied, as to the accuracy or completeness of the

information contained herein, and nothing contained herein

is or shall be relied upon as a promise or representation

as to the future representation of the Property. These

Assumptions may or may not be proven to be correct,

and there can be no assurance that such estimates will

be achieved. Further, the Greystone Investment Sales

Group Advisor and the Owner disclaim any and all liability

for representations or warranties, expressed or implied,

contained in or omitted from this Offering Brochure, or any

other written or oral communication transmitted or made

available to the recipient. The recipient shall be entitled to

rely solely on those representations and warranties that may

be made to it in any final, fully executed and delivered Real

Estate Purchase Agreement between it and Owner.

The information contained herein is subject to change

without notice and the recipient of those materials shall not

look to Owner or the Greystone Investment Sales Group

Advisor nor any of their officers, employees, representatives,

independent contractors or affiliates, for the accuracy

or completeness thereof. Recipients of this Offering

Brochure are advised and encouraged to conduct their own

comprehensive review and analysis of the Property.

This Offering Brochure is a solicitation of interest only and

is not an offer to sell the Property. The Owner expressly

reserves the right, at its sole discretion, to reject any or

all expressions of interest to purchase the Property and

expressly reserves the right, at its sole discretion, to

terminate negotiations with any entity, for any reason, at

any time with or without notice. The Owner shall have no

legal commitment or obligation to any entity reviewing

the Offering Brochure or making an offer to purchase

the Property unless and until the Owner executes and

delivers a signed Real Estate Purchase Agreement on

terms acceptable to Owner, in Owner’s sole discretion. By

submitting an offer, a prospective purchaser will be deemed

to have acknowledged the foregoing and agreed to release

the Owner and the Greystone Investment Sales Group

Advisor from any liability with respect thereto.

To the extent Owner or any agent of Owner or any agent

of Owner corresponds with any prospective purchaser,

any prospective purchaser should not rely on any such

correspondence or statements as binding Owner. Only a

fully executed Real Estate Purchase Agreement shall bind

the property and each prospective purchaser proceeds at

its own risk.

6320 LBJ Freeway, Suite 228, Dallas, TX 75240214-206-9559 •greyco-isg.com

ISGINVESTMENT SALES GROUP


DISCLOSUREInformation About Brokerage Services 11-2-2015

Texas law requires all real estate license holders to give the following information about

brokerage services to prospective buyers, tenants, sellers and landlords.

TYPES OF REAL ESTATE LICENSE HOLDERS:

A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents):

A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:

A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker.A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.

Put the interests of the client above all others, including the broker’s own interests;Inform the client of any material information about the property or transaction received by the broker;Answer the client’s questions and present any offer to or counter-offer from the client; andTreat all parties to a real estate transaction honestly and fairly.

AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner,usually in a written listing to sell or property management agreement. An owner's agent must perform the broker’s minimum dutiesabove and must inform the owner of any material information about the property or transaction known by the agent, includinginformation disclosed to the agent or subagent by the buyer or buyer’s agent.

AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through awritten representation agreement. A buyer's agent must perform the broker’s minimum duties above and must inform the buyer of anymaterial information about the property or transaction known by the agent, including information disclosed to the agent by the seller orseller’s agent.

AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the writtenagreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold orunderlined print, set forth the broker's obligations as an intermediary. A broker who acts as an intermediary:

Must treat all parties to the transaction impartially and fairly;May, with the parties' written consent, appoint a different license holder associated with the broker to each party (owner andbuyer) to communicate with, provide opinions and advice to, and carry out the instructions of each party to the transaction.Must not, unless specifically authorized in writing to do so by the party, disclose:

that the owner will accept a price less than the written asking price;that the buyer/tenant will pay a price greater than the price submitted in a written offer; andany confidential information or any other information that a party specifically instructs the broker in writing not todisclose, unless required to do so by law.

AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent thebuyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.

TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH:The broker’s duties and responsibilities to you, and your obligations under the representation agreement.Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.

LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation foryou to use the broker’s services. Please acknowledge receipt of this notice below and retain a copy for your records.

Licensed Broker/Broker Firm Name orPrimary Assumed Business Name

License No. Email Phone

Designated Broker of Firm License No. Email Phone

Licensed Supervisor of Sales Agent/ License No. Email PhoneAssociate

Phone: Fax:

Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com

Sales Agent/Associate's Name License No. Email Phone

Buyer/Tenant/Seller/Landlord Initials Date

Regulated by the Texas Real Estate Commission Information available at www.trec.texas.gov

IABS 1-0TAR 2501

••

••••

••

•

••

TJF Investments LP 9001221 [email protected] (214)206-9559

Todd Franks 479935 [email protected] (214)206-9559



TJF Investments LP, 6320 LBJ Frwy. #228 Dallas, TX 75240 (214)206-9559 (214)206-9616Todd Franks

IABS - Jon Krebbs


NOTES

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NICHOLAS BROWNAdvisor

[email protected]

INVESTMENT SALES GROUP

BYRON GRIFFITHAdvisor

[email protected]

TODD FRANKS, CCIMManaging Director

[email protected]

March 8, 2019 4:52 PM

Documents

OAK CREEK - LoopNet · 2019-03-28 · OAK CREEK OFFERING MEMORANDUM 7 Garland Independent School District offers a "Choice of School" program, allowing residents to choose the best