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Property. New 2,256+ SF building on +0.86 acres.
Tenant. Starbucks Corporation | FY 2017 financials: $22.4 billion in revenue and $4.1 billion in net income | Over 28,000 locations worldwide.
Lease structure. New 10-year, corporate net lease with 10% rent increases every 5 years in primary term and option periods.
Location. Starbucks is strategically located off exit 65 of US-75 (55,000 VPD) near its intersection with Grayson Dr. (5,000 VPD) in Denison, TX. The site will benefit
as it will feature direct access and excellent visibility through strong signage to US-75. Additionally, the subject property will serve the more than 3,000 employees that
work at the Texoma Medical center, the adjacent Hilton Garden Hotel (130 rooms), and the Residence at Gateway Village (180 units). The subject property is in close
proximity both Sherman Town Center (606,494 SF) and Midway Mall (600,000 SF), two regional malls in the immediate trade area containing tenants such as Dillard’s,
Target, Home Depot, Walmart, Ross, JC Penney, Old Navy, Burlington, Petco, Discount Tire, CVS, Buffalo Wild Wings, Applebee’s, Panera, Chick-fil-A, Taco Bell,
Chipotle, Sonic, KFC, and many others. Additional tenants in the trade area include Sam’s Club, Lowe’s, Kohl’s, ALDI, Academy, Tractor Supply Co, O’Reilly, Taco
Cabana, Wing Stop, Whataburger, Jimmy John’s, McDonald’s, and more. Denison is approximately 4-miles from TX-OK border and 75-miles from DFW Metroplex.
FILE PHOTO
214.915.8890
JOE CAPUTO
RUSSELL SMITH
ALEX TOWER
Trivanta (“Agent”) has been engaged as an agent for the sale of the property located at
5131 S. US-75, Denison, TX by the owner of the Property (“Seller”). The Property is being
offered for sale in an “as-is, where-is” condition and Seller and Agent make no
representations or warranties as to the accuracy of the information contained in this
Offering Memorandum. The enclosed materials include highly confidential information and
are being furnished solely for the purpose of review by prospective purchasers of the
interest described herein. The enclosed materials are being provided solely to facilitate the
prospective investor’s own due diligence for which it shall be fully and solely responsible.
The material contained herein is based on information and sources deemed to be reliable,
but no representation or warranty, express or implied, is being made by Agent or Seller or
any of their respective representatives, affiliates, officers, employees, shareholders,
partners and directors, as to the accuracy or completeness of the information contained
herein. Summaries contained herein of any legal or other documents are not intended to be
comprehensive statements of the terms of such documents, but rather only outlines of
some of the principal provisions contained therein. Neither the Agent nor the Seller shall
have any liability whatsoever for the accuracy or completeness of the information contained
herein or any other written or oral communication or information transmitted or made
available or any action taken or decision made by the recipient with respect to the Property.
Interested parties are to make their own investigations, projections and conclusions without
reliance upon the material contained herein. Seller reserves the right, at its sole and
absolute discretion, to withdraw the Property from being marketed for sale at any time and
for any reason. Seller and Agent each expressly reserves the right, at their sole and
absolute discretion, to reject any and all expressions of interest or offers regarding the
Property and/or to terminate discussions with any entity at any time, with or without notice.
This offering is made subject to omissions, correction of errors, change of price or other
terms, prior sale or withdrawal from the market without notice. Agent is not authorized to
make any representations or agreements on behalf of Seller. Seller shall have no legal
commitment or obligation to any interested party reviewing the enclosed materials,
performing additional investigation and/or making an offer to purchase the Property unless
and until a binding written agreement for the purchase of the Property has been fully
executed, delivered, and approved by Seller and any conditions to Seller’s obligations
hereunder have been satisfied or waived. By taking possession of and reviewing the
information contained herein, the recipient agrees that (a) the enclosed materials and their
contents are of a highly confidential nature and will be held and treated in the strictest
confidence and shall be returned to Agent or Seller promptly upon request; and (b) the
recipient shall not contact employees or tenants of the Property directly or indirectly
regarding any aspect of the enclosed materials or the Property without the prior written
approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied
or otherwise reproduced without the prior written authorization of Seller and Agent.
PAGE 3: INVESTMENT | TENANT | LEASE OVERVIEW
PAGE 2: TABLE OF CONTENTS | DISCLAIMER
PAGE 17: DEMOGRAPHICS
PAGE 12-14: LOCATION OVERVIEW
PAGE 15-16: LOCATION MAPS
PAGE 5-8: AERIAL PHOTOS
2
PAGE 4: TENANT OVERVIEW CONTINUED
PAGE 9-10: SITE PLAN
PAGE 11: ELEVATION
PRICE | CAP RATE: $2,000,000 | 5.25%
NET OPERATING INCOME: $105,000
BUILDING AREA: 2,256+ Square Feet
LAND AREA: 0.86+ Acres
YEAR BUILT 2018
LANDLORD RESPONSIBILITY: Roof & Structure
OWNERSHIP: Fee Simple Interest
OCCUPANCY: 100%
STARBUCKS | www.starbucks.com | NASDAQ: SBUX
Starbucks Corporation is an international coffee and coffeehouse chain based in Seattle, Washington, United States. Starbucks is the largest coffeehouse
company in the world, with over 28,000 stores globally, including around 13,000 in the United States, followed by nearly 1,000 in Canada and more than 900 in
Japan. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, snacks, and items such as mugs and coffee beans. Through the
Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company’s products are seasonal or
specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores.
Starbucks retail stores are located in high-traffic, high-visibility locations. Its stores are located in or near a variety of settings, including downtown and suburban
retail centers, office buildings and university campuses.
The Company sells whole bean and ground coffees, including the Starbucks and Seattle’s Best Coffee brands, as well as a selection of premium Tazo teas, VIA
and other related products, to institutional foodservice companies that service business and industry, education, healthcare, office coffee distributors, hotels,
restaurants, airlines and other retailers.
From Starbucks founding in later forms as a local coffee bean roaster and retailer, the company has expanded rapidly. In the 1990s, Starbucks was opening a new
store every workday, a pace that continued into the 2000s. The first store outside the United States or Canada opened in the mid-’90s, and overseas stores now
constitute almost one third of Starbucks stores. In fiscal 2017, the company reported revenues of $22.4 billion and net income of $4.1 billion
Starbucks Corporation, a Washington Corporation.
Projected Lease Expiration: October 2028
Projected Rent Commencement: October 2018
Lease Term: 10-Years, Plus (4), 5-Year Options to Extend
Rent Increases: 10% Every 5 Years In Primary Term & Options
Lease Type: Corporate Net Lease
3
Annual Rent Yrs 1-5: $105,000
Annual Rent Yrs 6-10: $115,500
Option 1 | Yrs 11-15: $127,050
Option 2 | Yrs 16-20: $139,755
Option 3 | Yrs 21-25: $153,730
Option 4 | Yrs 26-30: $169,103
4Source:starbucks.com
~ 28,000
77
5
6
Midway Mall
(600,00 SF)
Sherman
Town Center
(606,494 SF)
Texoma Medical Center
(3,000+ employees, 326 beds)
Gateway Village
Master Planned Community
(2,225 acres)
7
Sherman
Town Center
(606,494 SF)
Midway Mall
(600,00 SF)
Texoma Medical Center
(3,000+ employees, 326 beds)
Grayson College
(5,014 students)
Her
itag
e P
kwy.
(7,
000
VP
D)
US-82 (26,000 VPD)
Downtown Denison
(Approx. 5-miles)
Woodlawn
Country Club
Industrial Park
Sherman, TX
8
Grayson Dr. (5,000 VPD)
Swamy Clinic
Cosmetic Surgeons
Hilton Garden Inn
Denison/Sherman/ At
Texoma Event Center
(130 rooms)
The Residence at
Gateway Village
(180 units)
Gateway Village
Master Planned Community
(2,225 acres)
Texoma Medical Center
(3,000+ employees, 326 beds)
Gateway Village
Master Planned Community
(2,225 acres)
9
10
11
v v
12
GRAYSON COUNTY POPULATION TO SURPASS 330K BY 2050
Hutchins, Michael, Feb. 10, 2018 –The Sherman-Denison Metropolitan Planning Organization recently received an updated vision of what the demographics of the
region may looks like nearly 35 years in the future. As part of work on a county-wide thoroughfare plan, consultants presented the SDMPO technical advisory plan with
projections for growth that greatly outpace what the region has historically seen. Huitt Zollars and Community Development Strategies presented a vision of the region
in the year 2050 with a population of more than 330,000 residents. Among the communities expected to see the greatest growth in the forecast are Van Alstyne, Howe
and Sherman. “We are basically saying suburbia arrives in Grayson County,” CDS President Steven Spillette said. “We are saying Grayson County will have very
aggressive growth, so ‘get ready’ is the message.” The demographic forecast was commissioned as part of a thoroughfare plan that will outline the major transportation
routes and roads throughout the region. The growth into Grayson County and Texoma is expected to be part of the growth north from the Dallas-Fort Worth Metroplex
as the region continues to suburbanize. What makes the situation in Grayson County unusual is that it represents some of the first growth in “second ring” counties
surrounding the Metroplex. As such, there is little precedent or data to look to compare when calculating growth. “Really, we haven’t seen a county that is one county
removed from the central business district see this kind of growth,” SDMPO Executive Director Clay Barnett said.
Past growth numbers
The SDMPO last commissioned a demographic and growth forecast about five years ago as it was preparing for an update to its long-range planning documents. The
model used state data that projected growth at about 1 percent based on historic data. However, these estimates range from about 1.8 percent growth from 2020 to
2025 to about 3.5 percent between 2045 and 2050. “With what we have seen in the last few years, even the state demographer seems to think that this (low estimate)
is unreasonable,” Barnett said. In determining a growth model, consultants used historic and state growth charts and also compared the growth to other areas as they
started to see the sprawl from Dallas. These areas include DFW suburbs in Collin and Denton counties and areas surrounding other large urban centers across the
state. Under the projections, the first wave of growth is expected to hit between 2020 and 2030, with growth between 2025 and 2030 expected to be about 2.7 percent.
The highest growth areas will be those in the southern portions of the county and those along the U.S. Highway 75 corridor including Howe, Van Alstyne and Sherman.
Other city centers, including Denison, will also see growth but not to the levels that areas to the south will.Last year, the U.S. Census Bureau released its annual
estimates of resident population for the Sherman-Denison Metropolitan Statistical Area that showed the region grew 2.1 percent from 2015 to 2016. That was the
largest estimated year-to-year growth the area has seen this decade and placed the region as the 27th highest percent growth in the country.
Local responses
Following the meeting, officials with the cities of Sherman and Denison both said that the growth represents an opportunity for the cities, but were uncertain that they
would become suburbs of Dallas. Instead, both said the area would become an exurb — a urban area of its own that still retains some influences from the greater
Metroplex.. In response to the comments that the growth would be driven by population rather than jobs, Rex said the city of Denison has already taken strides to
cement its place as the medical center of the region. However, he said there will be some times in development where the region is a bedroom community, describing it
as a “chicken and the egg” situation. Meanwhile, Sherman City Manager Robby Hefton said the city will make efforts through developments to retain its unique qualities
even as growth from the Metroplex influences the region. “As we head into growth, the question becomes how do we avoid losing our fingerprints and what makes us
unique,” he said. One of these aspects that sets Sherman apart from other communities that have seen the influences of suburbanization is its wide industrial base,
Hefton said. While communities like McKinney have seen growth from the expansion of Dallas, he said those communities do not have the industrial companies that
Sherman does…
13
IMMEDIATE TRADE AREA
Starbucks is strategically located off exit 65 of US-75 (55,000 VPD) near its intersection with Grayson Dr. (5,000 VPD) in Denison, TX. Grayson Dr. is a local east-west
thoroughfare that serves Grayson County, while US-75 is a major north-south US Highway that traverses 1,239-miles through the center of the country. The site will
benefit as it will feature direct access and excellent visibility through strong signage to US-75. Additionally, the subject property will serve the more than 3,000 employees
that work at the Texoma Medical center, the adjacent Hilton Garden Hotel (130 rooms), and the Residence at Gateway Village (180 units). The subject property is part of
Gateway Village, a 2,225 acre master planned community developed to provide a maximum of 6,578 residential units, 784,080 square feet of commercial (including
office, service, retail, light industrial and government uses), 825,898 square feet of town center commercial and mixed use (including office, service, and retail), four
elementary schools and 115 acres of public parks. Denison is approximately 4-miles from TX-OK border and 75-miles from DFW Metroplex.
The subject property is in close proximity both Sherman Town Center (606,494 SF) and Midway Mall (600,000 SF), two regional malls in the immediate trade area
containing tenants such as Dillard’s, Target, Home Depot, Walmart, Ross, JC Penney, Old Navy, Burlington, Petco, Discount Tire, CVS, Buffalo Wild Wings, Applebee’s,
Red Lobster, Cheddar’s, Panera, Chick-fil-A, Taco Bell, Chipotle, Sonic, KFC, and many others. Additional tenants in the trade area include Sam’s Club, Lowe’s, Kohl’s,
ALDI, Academy, Tractor Supply Co, O’Reilly, Aaron’s, Olive Garden, Chili’s, Taco Cabana, Wing Stop, Whataburger, Popeyes, Jimmy John’s, McDonald’s, and more.
DENISON, TX / GRAYSON COUNTY
The city of Denison, is located in northeastern Grayson County on US Highway 75, just 75 miles north of Dallas-Fort Worth and 4 miles south of the Texas/Oklahoma state
border. The population as of 2016 was 28,755 with a population increase of 4.64% since 2000. State Highway 120 passes through Denison from east to west and State
Highway 84 borders northern Denison, providing direct access to Lake Texoma, which is the 12th largest man-made lake in the U.S. and offers 580 miles of shoreline.
Denison is also the birthplace Dwight D. Eisenhower, the 34th President of the United States.
Grayson County is the 29th largest of 254 counties in Texas with a 2015 population of just over 125,000. Grayson County consists of 940 square miles with a population
density of approximately 106 residents per square mile. The Sherman–Denison Metropolitan Statistical Area, entirely consist of Grayson, anchored by the cities of
Sherman and Denison. Residents enjoy a high quality of life with gently rolling and wooded terrain, which stretches northward to the shores of Lake Texoma and the Red
River. Lake Texoma is formed by the Denison Dam on the Red River in Bryan County, Oklahoma, and Grayson County, Texas, about 726 miles (1,168 km) upstream from
the mouth of the river. Lake Texoma draws over 7 million visitors annually and is considered a lake for all seasons. Lake Texoma is also home to the Lakefest Regatta,
widely considered to be the first inland charity regatta in the United States. The event typically attracts up to 100 keelboats and more than 500 sailors each spring.
Denison also has 2 state parks, 2 wildlife refuges, 22 marinas / concessions, and 10 Corps of Engineers Class A parks. Major employers of the Grayson County areainclude the Texoma Medical center, which employs 2800 employees, Tyson Fresh Meats, Texas Instruments, Ruiz Foods and CIGNA Health.
LAKE TEXOMA HARBOR VILLAGE
14
DALLAS - FORT WORTH - ARLINGTON MSA
The Dallas – Fort Worth – Arlington Metropolitan Statistical Area (MSA) encompasses 13 counties within the U.S. state of Texas. It is the economic and cultural hub of the
region commonly called North Texas or the Metroplex and is the largest land-locked metropolitan area in the United States.
The projected Dallas-Fort Worth Metroplex population for 2016 was 7,268,910. During the 12-month period from July 2008 to July 2009, the Dallas-Fort Worth-Arlington
metropolitan area gained 146,530 new residents, more than any other metropolitan area in the United States. The area's population has grown by about 1 million since
the last census was administered in 2000. The Dallas–Fort Worth–Arlington MSA is, by population, the largest metropolitan area in Texas, the largest in the South, the
4th largest in the United States, and the 10th largest in the Americas. The metropolitan area has the 4th largest gross metropolitan product (GMP) in the United States,
and approximately 10th largest by GMP in the world.
The Metroplex has one of the highest concentrations of corporate headquarters in the United States. 20 Fortune 500 companies are headquartered in the area. The city
of Dallas alone has the 3rd largest concentration of Fortune 500 headquarters in the country. The Metroplex also contains the largest Information Technology industry
base in the state (often referred to as Silicon Prairie or the Telecom Corridor), due to the large number of corporate IT projects and the presence of numerous electronics,
computing and telecommunication firms. The Telecom Corridor located just north of Dallas in Richardson is home to more than 5,700 companies including Texas
Instruments which employs over 10,000 people at its headquarters. HP Enterprises Services, Dell Services, i2, AT&T, Ericsson, CA and Verizon also have headquarters
or major operations in and around Dallas. The Texas farming and ranching industry, based in Fort Worth adds to the economic diversification of the area. Several major
defense manufacturers, including Lockheed Martin, Bell Helicopter Textron, and Raytheon, maintain significant operations in the Metroplex. ExxonMobil, the #1
corporation on the Fortune 500 listings, is headquartered in Irving, Texas.
DALLAS
15
Fort Worth
Denison
Dallas
75-Miles
90-Miles
16
2018 Est. Labor Population Age 16 Years or Over 51 10,673 39,388
2018 Est. Civilian Employed 59.0% 55.7% 56.8%
2018 Est. Civilian Unemployed 0.7% 2.0% 2.2%
2018 Est. in Armed Forces - 0.1% 0.1%
2018 Est. not in Labor Force 40.3% 42.2% 41.0%
2018 Labor Force Males 45.6% 45.8% 46.7%
2018 Labor Force Females 54.4% 54.2% 53.3%
2010 Occupation: Population Age 16 Years or Over 32 5,924 22,291
2010 Mgmt, Business, & Financial Operations 15.7% 11.5% 9.8%
2010 Professional, Related 25.1% 22.4% 17.3%
2010 Service 22.8% 17.3% 18.6%
2010 Sales, Office 16.7% 31.4% 32.2%
2010 Farming, Fishing, Forestry - - -
2010 Construction, Extraction, Maintenance 12.6% 8.8% 10.0%
2010 Production, Transport, Material Moving 7.1% 8.7% 12.0%
2010 White Collar Workers 57.5% 65.2% 59.4%
2010 Blue Collar Workers 42.5% 34.8% 40.6%
2010 Drive to Work Alone 83.1% 83.6% 80.0%
2010 Drive to Work in Carpool 10.9% 9.5% 10.9%
2010 Travel to Work by Public Transportation 0.1% 0.1% 0.1%
2010 Drive to Work on Motorcycle - - 0.1%
2010 Walk or Bicycle to Work 1.3% 1.4% 2.9%
2010 Other Means 1.8% 1.7% 2.2%
2010 Work at Home 2.8% 3.7% 3.9%
2010 Travel to Work in 14 Minutes or Less 57.9% 51.2% 47.4%
2010 Travel to Work in 15 to 29 Minutes 25.6% 30.6% 33.0%
2010 Travel to Work in 30 to 59 Minutes 13.6% 10.4% 10.0%
2010 Travel to Work in 60 Minutes or More 8.1% 5.1% 6.4%
2010 Average Travel Time to Work 13.3 14.0 14.5
2018 Est. Total Household Expenditure $1.69 M $304 M $991 M
2018 Est. Apparel $59.2 K $10.6 M $34.5 M
2018 Est. Contributions, Gifts $119 K $20.4 M $64.4 M
2018 Est. Education, Reading $67.9 K $11.6 M $36.5 M
2018 Est. Entertainment $94.3 K $17.0 M $55.1 M
2018 Est. Food, Beverages, Tobacco $257 K $46.8 M $154 M
2018 Est. Furnishings, Equipment $58.0 K $10.4 M $33.4 M
2018 Est. Health Care, Insurance $148 K $27.0 M $88.6 M
2018 Est. Household Operations, Shelter, Utilities $526 K $94.4 M $308 M
2018 Est. Miscellaneous Expenses $24.7 K $4.49 M $14.7 M
2018 Est. Personal Care $22.0 K $3.96 M $12.9 M
2018 Est. Transportation $315 K $57.9 M $190 M
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5131 S US Hwy 751 mi radius 3 mi radius 5 mi radius
Denison, TX
2018 Estimated Population 62 13,152 49,449
2023 Projected Population 69 14,535 55,029
2010 Census Population 60 11,649 45,325
2000 Census Population 53 10,104 43,536
Projected Annual Growth 2018 to 2023 2.2% 2.1% 2.3%
Historical Annual Growth 2000 to 2018 1.0% 1.7% 0.8%
2018 Estimated Households 27 5,371 19,228
2023 Projected Households 28 5,620 20,303
2010 Census Households 26 4,787 17,755
2000 Census Households 23 4,166 17,268
Projected Annual Growth 2018 to 2023 1.0% 0.9% 1.1%
Historical Annual Growth 2000 to 2018 1.0% 1.6% 0.6%
2018 Est. Population Under 10 Years 10.4% 11.9% 13.1%
2018 Est. Population 10 to 19 Years 12.6% 12.3% 13.3%
2018 Est. Population 20 to 29 Years 11.5% 12.7% 14.2%
2018 Est. Population 30 to 44 Years 14.8% 16.0% 16.6%
2018 Est. Population 45 to 59 Years 21.1% 19.2% 18.4%
2018 Est. Population 60 to 74 Years 19.8% 17.6% 16.0%
2018 Est. Population 75 Years or Over 9.8% 10.2% 8.4%
2018 Est. Median Age 44.3 41.0 37.8
2018 Est. Male Population 46.8% 46.7% 47.6%
2018 Est. Female Population 53.2% 53.3% 52.4%
2018 Est. Never Married 24.4% 28.3% 30.3%
2018 Est. Now Married 46.4% 43.7% 40.8%
2018 Est. Separated or Divorced 16.7% 17.1% 19.4%
2018 Est. Widowed 12.5% 10.8% 9.6%
2018 Est. HH Income $200,000 or More 5.9% 3.3% 2.9%
2018 Est. HH Income $150,000 to $199,999 8.4% 6.2% 4.1%
2018 Est. HH Income $100,000 to $149,999 11.8% 10.2% 9.7%
2018 Est. HH Income $75,000 to $99,999 12.6% 16.3% 13.7%
2018 Est. HH Income $50,000 to $74,999 15.9% 17.8% 18.8%
2018 Est. HH Income $35,000 to $49,999 11.4% 14.8% 14.5%
2018 Est. HH Income $25,000 to $34,999 9.2% 8.6% 11.2%
2018 Est. HH Income $15,000 to $24,999 12.3% 10.6% 12.0%
2018 Est. HH Income Under $15,000 12.5% 12.3% 13.2%
2018 Est. Average Household Income $85,376 $73,135 $64,097
2018 Est. Median Household Income $58,579 $56,753 $51,479
2018 Est. Per Capita Income $36,709 $29,974 $25,090
2018 Est. Total Businesses 147 825 2,701
2018 Est. Total Employees 2,224 11,812 28,544
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5131 S US Hwy 751 mi radius 3 mi radius 5 mi radius
Denison, TX
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