COPPELL, TX - LoopNet · ˜i ormatio a e ecure ro sour eliev eliable, u ak n epresentation o...

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CORPORATE SALE-LEASEBACK 15 YEAR ABSOLUTE NNN LEASE 2018 SIGNATURE CLUB OFFERING MEMORANDUM COPPELL, TX 250 W STATE HWY 121 // COPPELL, TX 75019

Transcript of COPPELL, TX - LoopNet · ˜i ormatio a e ecure ro sour eliev eliable, u ak n epresentation o...

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CORPORATE SALE-LEASEBACK15 YEAR ABSOLUTE NNN LEASE2018 SIGNATURE CLUB

O F F E R I N G M E M O R A N D U M

COPPELL, TX

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01 EXECUTIVESUMMARY

Investment Overview.. . . . . . . . . . . . . . . . . . . . . .02Offering Summary. . . . . . . . . . . . . . . . . . . . . . . . . . .04Summary of Terms.. . . . . . . . . . . . . . . . . . . . . . . . . .05

02 PROPERTYDESCRIPTION

Tenant Summary/ Property Details. . . . .11Maps/Aerials...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14

03 MARKETOVERVIEW

Location Overview.. . . . . . . . . . . . . . . . . . . . . . . . . .20D e m o g r a p h i c s . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 6

Table ofContents

COPPELL, TX

RECENTLYOPENED

Nov2018

MARK THIELSENIOR MANAGING DIRECTOR INVESTMENTSSAN DIEGOTel: (858) 373-3206Fax: (858) [email protected]: CA 01469342

ExclusivelyListed by

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This 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. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap Activity ID:

01EXECUTIVESUMMARY

AVERAGE HOUSEHOLD INCOME WITHIN 1-MILE RADIUS OFLA FITNESS – COPPELL, TX

$117,553income

COPPELL, TX

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INVESTMENT OVERVIEWMarcus & Millichap has been selected to exclusively market for sale a brand-new, freestanding LA Fitness Signature Club in Coppell, Texas, which is part of the Dallas/Fort Worth MSA. This pride-of-ownership asset is situated at a high traffic location, with unrivaled freeway frontage and visibility to a combined 107,700+ vehicles per day on nearby roads. The location boasts dense demographics, with a population of 209,400+ within a 5-mile radius.

LA Fitness is the No. 1 revenue-generating health club company in the industry (non-franchised). The lease is signed and backed by Fitness International, LLC, parent company of LA Fitness with 700+ locations in the U.S. and Canada. This development is a rare corporate sale–leaseback with a brand-new 15-year NNN lease and zero landlord responsibilities.

Structured 10 percent rent increases every 5 years and throughout the option periods will provide strong NOI growth. This Signature Club opened early November 2018 and features a modern 41,000-square-foot design on 5.3 acres.

INVESTMENT HIGHLIGHTS

Strong NOI Growth

Structured

10%Increases

Every 5 YearsAnd Throughout Option Periods

Industry Leading Tenant

#1Revenue-GeneratingHealth Club Company In The Industry (Non-Franchised)

EXTREMELY LOW RENTONLY $15.04/SF

PRIDE OFOWNERSHIP

Brand NewFreestanding

SIGNATURE Club

Located in CentralDallas MSA

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$261.59PRICE PER SQUARE FOOT

PRICE$10,725,000

5.75%GOING-IN CAP RATE

$616,688NET OPERATING INCOME

15 year NNNLEASE

Rare Corporate Sale Leaseback:

To Be Executed At The Close Of EscrowSUMMARY OF TERMS

INTEREST OFFEREDFee simple interest in LA Fitness – Coppell, a 41,000-square-foot retail property located at 250 W State Highway 121, Coppell, TX 75019.

TERMS OF SALELA Fitness – Coppell is offered for $10,725,000. The price is non-negotiable. The net operating income figures for the property assume a fiscal year starting one year following Close of Escrow.

PROPERTY TOURSProspective purchasers are encouraged to visit the subject property prior to submitting offers. However, all property tours must be arranged with the Marcus & Millichap listing agents. At no time shall the tenants, on-site management or staff be contacted without prior approval.

OFFERING SUMMARY

OFFERING SUMMARYPrice $10,725,000

Price Per SF $261.59 / SF

Gross Leasable Area (GLA) 41,000 SF

Year Built / Renovated 2018

Lot Size 5.3 Acres

Completion Date November 2018

Lease Commencement At Close Of Escrow

Lease Expiration 15 Years Following COE

Increases 10% Every 5 Years

Renewal Options (3) 5-Year

Net Operating Income $616,688

Cap Rate 5.75%

250 W STATE HIGHWAY 121COPPELL, TX 75019

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New 2018 modern FacilityFeatures State-of-the-Art 41,000 SF Design on 5.3 Acres

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This 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. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap Activity ID:

02PropertyDescription

APPROXIMATE TOTAL 2018 POPULATION WITHIN 5 MILES OF

LA FITNESS – COPPELL

209,094population

COPPELL, TX

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700+LOCATIONS

ACROSS THE UNITED STATES & CANADA

Fitness International, LLC, known as LA Fitness, is the largest non-franchised

fitness club operator in the United States. Founded in 1984 and headquartered

in Irvine, Calif., LA Fitness is one of the fastest growing sports club chains in the

U.S., with more than 700 locations across the United States and Canada. Club

Industry estimates the company has annual revenue of $2.1 billion. LA Fitness

was also ranked #1 out of 100 in Club Industry’s Top 100 Health Clubs of 2018.

Their mission is to help as many people as possible achieve the benefits of a

healthy lifestyle by creating a nationwide network of sports clubs, offering

its members the widest range of amenities and the friendliest service at an

affordable price.

LA Fitness clubs offer state-of-the-art equipment and cardio areas, group and

specialty classes, indoor heated lap pools, whirlpool spas and saunas, racquetball

and basketball courts, full locker facilities, personal trainers, and babysitting.

The company also sells apparel for men and women, headgear, bags, and other

merchandise through their online store.

LEASE SUMMARY

Tenant Trade Name LA Fitness

Initial Lease Term Years

Lease Type Absolute NNN

Roof & Structure Responsibility None

Rent Commencement Date At COE

Lease Expiration Date 15 Years Following COE

Increases 10% Every Five Years

Renewal Options (3) 5-Year Options

TENANT SUMMARY

Tenant Fitness International, LLC

Ownership Private

Annual Revenue $2.1 Billion

Number of Locations 700+

Headquarters Irvine, CA

Website www.lafitness.com

700+ LOCATIONS

$2.1 billion*TOTAL REVENUE 2017A 5.7% Increase From 2016

* Club Industry estimates the company has annual revenue of $2.1 billion.

FirstClubNOVEMBER 1984C O V I N A , C A L I F O R N I A

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TOP GYMSIN THE UNITED STATES

#1 LA FITNESSIRVINE, CALIFORNIA

#2 // LIFE TIME FITNESS – CHANHASSEN, MINNESOTA

#3 // 24 FITNESS – SAN RAMON , CALIFORNIA

#4 // EQUINOX – NEW YORK, NEW YORK

#5 // CLUBCORP – DALLAS, TEXAS

#6 // PLANET FITNESS – NEWINGTON, NEW HAMPSHIRE

#7 // TOWN SPORTS INTERNATIONAL HOLDINGS, INC – NEW YORK, NEW YORK

#8 // THE BAY CLUB CO. – SAN FRANCISCO, CALIFORNIA

#9 // CAPITAL FITNESS INC. DBA XSPORTS FITNESS – BIG ROCK, ILLINOIS

#10 // CRUNCH – NEW YORK, NEW YORK

41,000SQUARE FEET OF

PREMIUM HEALTH CLUB EXPERIENCE

*Per Club Industry 2018 Award Rankings

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2.7+MILLION

DALLAS COUNTY POPULATION

909

LARGEST CITYDALLAS

125,800+

SQUARE MILES

COPPELL, TX

DOWNTOWNDALLAS2 1 M i l e s

DFWAIRPORT3 . 8 M i l e s

AT&TSTADIUM

2 1 M i l e s

SIXTH FLOORMUSEUM

2 1 M i l e s

GLOBE LIFEPARK

2 0 M i l e s

AACENTER2 0 M i l e s

COPPELL, TX

L A F I T N E S S

L A F I T N E S S

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Coupon ClipperFreestanding single-tenant asset

with zero landlord responsibilities

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This 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. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap Activity ID:

03MARKETOVERVIEW

IN TOTAL HOUSEHOLDS WITHIN5 MILE RADIUS SINCE 2000LA FITNESS – COPPELL, TX

25.71%INCREASE OF

COPPELL, TX

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Dallas County is Texas’ second-most populous county and the ninth-most populous in the United States. Its county seat is Dallas, which is also Texas’ third-largest city and the ninth-largest city in the United States. Dallas is one of the fastest-growing cities in the United States. Overall, the Dallas–Fort Worth metro area had the second largest population increase among metro areas in the U.S., which recorded a population of 7,233,323 as of July 1, 2016, an increase of 807,000 people since the 2010 census.

Dallas and nearby Fort Worth were developed due to the construction of major railroad lines through the area, allowing access to cotton, cattle, and later oil in North and East Texas. The construction of the Interstate Highway System reinforced Dallas’s prominence as a transportation hub and major inland port, with four major interstate highways converging in the city and a fifth interstate loop around it. The highways, major railroad lines, along with the construction of Dallas/Fort Worth International Airport (one of the largest and busiest airports in the world) developed Dallas into a strong industrial and financial center.

Coppell, Texas is a city in the northwest corner of Dallas County in the U.S. state of Texas. It is a suburb of Dallas and a bedroom community in the Dallas–Fort Worth metroplex. The Coppell area was settled by German and French immigrants in the 1840s, and the town was renamed in 1892 for George Coppell, a wealthy English financier who came to the United States in the 1880s and was reportedly heavily involved with the final construction of the local railroad line. Spurred by the opening of Dallas/Fort Worth International Airport in 1974, the city was radically transformed from a tiny farming village to a large, upper-middle class suburban community in the 1980s and 1990s. By 2000, almost all of the residentially zoned land in the city was developed, and the population grew to over 35,000. In addition to suburban homes, the city has a growing commercial base of warehouses and transportation centers on the south and west sides of the city, closest in proximity to the airport.

COPPELLTEXAS

DALLAS county TEXAS

Coppell Nature Park

Coppell Farmer’s Market

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The Metroplex’s temperate climate, no state income tax and a right-to-work labor policy attract employers. Dallas/Fort Worth is one of the nation’s largest employment markets, with nearly 3.7 million jobs. Professional and business services added 31,800 jobs in the area from August 2017 to August 2018, the largest gain of any local supersector. The Dallas area’s 5.3-percent annual rate of job growth compared to the U.S. increase of 2.6 percent. The Dallas-Plano-Irving division added jobs at a faster pace than the Fort Worth-Arlington division, 5.7 percent and 3.7 percent, respectively.

The region is home to 22 Fortune 500 companies in a variety of sectors, including ExxonMobil, American Airlines Group, Southwest Airlines, Fluor, AT&T, Tenet Healthcare, Kimberly-Clark, and J.C. Penney. The area is forecast to add jobs at an annual rate of 2.0 percent through 2022, well above the U.S. level. Economic expansion will be further fueled by a rise in financial services and high tech companies.

LABOR // dallasMAJOR LOCAL EMPLOYERS

AMR Corporation (American Air-lines)

24,700

Bank of America 20,000

AT&T 15,800

Lockheed Martin Aeronautics 14,126

JP Morgan Chase & Co. 13,500

UT-Southwestern Medical Center 13,122

City of Dallas 12,836

US Postal Service 10,439

Kroger Co. 10,097

Texas Instruments 9,100

Raytheon Company 8,700

Target 8,674

UPS 8,555

J.C. Penney Co. 7,964

University of Texas, Arlington 6,239

Location HIGHLIGHTSDALLAS COUNTY

is home to

7ProfessionalSports Teams

footballDallas Cowboys

baseballTexas Rangers

HockeyDallas Stars

lacrosseDallas Rattlers

BasketballDallas Mavericks

Dallas Wings

SoccerFC Dallas

Port of dallas

LARGESTLogistics Hub

In North America

RobustEconomy

Led ByDefense &

Information TechnologyIndustries

ConvenientPublic Rail & AirTransportation

Major Museums & World-FamousSports Venues

DALLAS County

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Downtown Dallas

Transportation

majorly connectedThe area is connected to the rest of the nation by way of Interstates 20, 30, 35, 45, 635, and 820.

rapid transitDART - Dallas Area Rapid Transit - covers Dallas and 12 surrounding cities, and consists of busses and a 93-mile light rail system.

freightFreight serving lines in the region include Union Pacific, BNSF and Kansas City Southern. BNSF is headquartered in Fort Worth.

Passenger rail serviceTrinity Railway Express and Amtrak provide passenger rail service.

international inland portVia rail to Houston Port, and Highways 20 and 45, the International Inland Port of Dallas (IIPOD) connects the region to global markets and trade.

airportsAirports include Dallas/Fort Worth International, Dallas Love Field, Fort Worth Alliance and 13 smaller airports.

The Dallas-Fort Worth MSA has one of the largest concentrations of corporate headquarters for publicly traded companies in the United States. Fortune Magazine’s 2017 annual list of the Fortune 500 in America indicates the city of Dallas has 9 Fortune 500 companies, and the DFW region as a whole has 22, reflecting the continued strong growth in the metro economy and up from 20 the year before. Dallas-Fort Worth now represents the largest concentration of Fortune 500 headquarters in the State of Texas.

In addition to its large number of businesses, Dallas has more shopping centers per capita than any other city in the United States and is also home to the second shopping center ever built in the United States, Highland Park Village, which opened in 1931. Dallas is home of the two other major malls in North Texas, the Dallas Galleria and NorthPark Center, which is the 2nd largest mall in Texas. Both malls feature high-end stores and are major tourist draws for the region.

The DFW economy continues to be a key driver of business activity in the state. The area’s business complex is diverse, including concentrations in health care, logistics, technology, and more. Dallas-Fort Worth and the surrounding area remains one of the best-performing economic regions, a pattern expected to continue through the next five years.*

*Per the Dallas Regional Chamber

ECONOMY //dallas

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POPULATION 1 Mile 3 Miles 5 Miles2023 Projection

Total Population 12,843 98,164 232,947

2018 Estimate

Total Population 11,433 88,980 209,094

2010 Census

Total Population 10,733 78,360 180,092

Growth 2018-2023 Projection

Total Population 9.18% 10.32% 11.41%

Growth 2010-2018

Total Population 6.52% 13.55% 16.10%

HOUSEHOLDS 1 Mile 3 Miles 5 Miles2023 Projection

Total Households 4,991 39,409 89,056

2018 Estimate

Total Households 4,543 35,614 80,125

2010 Census

Total Households 4,272 31,396 69,782

Growth 2018-2023 Projection

Total Households 9.86% 10.66% 11.15%

Growth 2010-2018

Total Households 6.34% 13.43% 14.82%

Owner Occupied 2,193 17,355 43,170

Renter Occupied 2,350 18,260 36,955

HOUSEHOLDS BY INCOME 1 Mile 3 Miles 5 Miles2018

<$25,000 276 3,522 7,675

$25,000 - $50,000 963 7,085 14,367

$50,000 - $75,000 900 7,254 15,187

$75,000 - $100,000 389 4,173 10,303

$100,000 - $125,000 563 3,992 9,560

$125,000 - $150,000 298 2,457 6,064

$150,000 - $200,000 402 3,119 8,463

$200,000+ 751 4,012 8,505

Average Household Income $117,553 $104,170 $106,343

Median Household Income $83,483 $74,780 $81,874

HOUSEHOLDS BYEXPENDITURE 1 Mile 3 Miles 5 MilesTotal Average Household Retail Expendi-ture

$80,545 $76,622 $76,944

Consumer Expenditure Top 10 Categories

Housing $20,551 $19,684 $19,751

Transportation $17,082 $15,963 $15,881

Shelter $11,025 $10,556 $10,564

Food $9,161 $8,687 $8,603

Personal Insurance and Pensions $8,486 $7,851 $7,682

Health Care $5,259 $5,024 $5,055

Utilities $4,908 $4,709 $4,721

Entertainment $3,078 $2,926 $2,919

Household Furnishings and Equipment $2,457 $2,325 $2,356

Cash Contributions $2,236 $2,080 $2,048

POPULATION PROFILE 1 Mile 3 Miles 5 MilesPopulation By Age

2017 Estimate Total Population 16,040 90,222 211,367

Under 20 28.40% 27.15% 27.34%

20 to 34 Years 22.69% 25.01% 23.43%

35 to 39 Years 7.72% 7.40% 8.08%

40 to 49 Years 17.38% 15.45% 15.82%

50 to 64 Years 18.99% 19.16% 18.41%

Age 65+ 4.82% 5.84% 6.94%

Median Age 34.32 33.66 34.54

Population 25+ by Education Level

2017 Estimate Population Age 25+ 10,548 59,672 140,829

Elementary (0-8) 1.18% 1.79% 3.04%

Some High School (9-11) 1.86% 3.47% 4.15%

High School Graduate (12) 11.41% 14.76% 15.93%

Some College (13-15) 18.76% 21.49% 20.99%

Associate Degree Only 6.35% 7.98% 7.78%

Bachelors Degree Only 38.14% 32.57% 30.79%

Graduate Degree 22.15% 17.43% 16.45%

$117,553Average Household Income

Within 1-Mile Radius

$235,200Median Housing Value Within 1-Mile Radius

8 0,025Total Households

Within 5-Mile Radius

25.71 %From 2000

Demographics // coppell, tx

209,482Total Population

Within 5-Mile Radius

G E N D E R

48.96%

51.04%

The Metroplex provides residents with an unparalleled lifestyle at a reasonable cost. The region continually ranks high for its affordability when

compared with other large metros. A temperate climate provides ample opportunities for outdoor enthusiasts to enjoy. The region has many golf

courses and activities at the metro’s several reservoirs. Dallas/Fort Worth hosts professional teams in baseball, football, hockey and basketball.

Numerous educational institutions contribute to an educated workforce. The University of Texas at Dallas, University of North Texas, Texas

Woman’s University-Denton, Southern Methodist University, Texas Christian University and the University of Texas at Arlington are among the

19 higher-education institutions in the region. Metroplex residents are proximate to nationally recognized health centers: Parkland Memorial

Hospital, Baylor University Medical Center and Texas Health Harris Methodist Hospital Fort Worth. Four medical schools also contribute to Dallas/

Fort Worth’s excellent healthcare providers.

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PopulationIn 2017, the population in your selected geography is 16,040. The population has changed by 25.71% since 2000. It is estimated that the population in your area will be 18,096.00 five years from now, which represents a change of 12.82% from the current year. The current population is 48.96% male and 51.04% female. The median age of the population in your area is 34.32, compare this to the US average which is 37.83. The population density in your area is 5,106.08 people per square mile.

HouseholdsThere are currently 6,430 households in your selected geography. The number of households has changed by 21.44% since 2000. It is estimated that the number of households in your area will be 7,295 five years from now, which represents a change of 13.45% from the current year. The average household size in your area is 2.48 persons.

IncomeIn 2017, the median household income for your selected geography is $86,421, compare this to the US average which is currently $56,286. The median household income for your area has changed by 31.40% since 2000. It is estimated that the median household income in your area will be $98,315 five years from now, which represents a change of 13.76% from the current year. The current year per capita income in your area is $50,315, compare this to the US average, which is $30,982. The current year average household income in your area is $125,351, compare this to the US average which is $81,217.

Race & ethnicityThe current year racial makeup of your selected area is as follows: 59.20% White, 8.86% Black, 0.02% Native American and 24.86% Asian/Pacific Islander. Compare these to US averages which are: 70.42% White, 12.85% Black, 0.19% Native American and 5.53% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 10.79% of the current year population in your selected area. Compare this to the US average of 17.88%.

HousingThe median housing value in your area was $290,971 in 2017, compare this to the US average of $193,953. In 2000, there were 2,151 owner occupied housing units in your area and there were 3,144 renter occupied housing units in your area. The median rent at the time was $757.

EmploymentIn 2017, there are 6,897 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 83.70% of employees are employed in white-collar occupations in this geography, and 16.49% are employed in blue-collar occupations. In 2017, unemployment in this area is 2.84%. In 2000, the average time traveled to work was 26.00 minutes.

1-mile demographics

Roughly 540,400 new people are expected through 2022, fueled by natural increases and north-to-south migration.

The Metroplex is projected to add 241,300 households during the same period, generating the need for additional housing options.

An educated population provides a skilled labor pool. Nearly 32 percent of residents age 25 and older have at least a bachelor’s degree, compared with 29 percent for the nation.

The 2017 metro homeownership rate stands at approximately 61 percent; this compares with 64 percent for the U.S.

QUICK FACTS

* Forecast

DEMOGRAPHICS

34.72017

MEDIAN AGE:

U.S. Median:37.8

$62,1002017 MEDIAN

HOUSEHOLD INCOME:

U.S. Median:$56,300

2.6M2017

HOUSEHOLDS:

Growth2017-2022*:9.2%

7.3M2017

POPULATION:

Growth2017-2022*:7.4%

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