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PRESTONHOLLOW
UNIVERSITYPARK HIGHLAND
PARK
AMBASSADOR ROW
SOV
ER
EIG
N R
OW
DIVIDEND DRIVE
HARRY HINES BOULEVARD
METROMEDIA PLACE
IRVING BOULEVARD
W MOCKINGBIRD LANE35E
35E
JOHN W. CARPENTER FREEWAY (HWY 183)
DALLAS CBDUPTOWN / TURTLE CREEK
DESIGN DISTRICTSOUTHWESTERNMEDICAL DISTRICT
www.streamrealty.com
SALES PRICE: $2,175,000 ($51.27/SF)
42,420 Square Feet | 100% Leased
Value Add Industrial | Premier Infill Location | Multi-Tenant Design
D A L L A S , T E X A S
O F F E R I N G S U M M A R Y
2
EXECUTIVE SUMMARY
OFFERING SUMMARYStream Realty Partners is pleased to present for sale 8400 Ambassador Row (the “Property”), an infill, industrial warehouse comprised of 42,420 square feet in the South Stemmons Industrial submarket. The Property is currently 100% leased to two tenants with near term lease expirations at below market rental rates.The sale of the property is subject to a 99-year ground lease, with 85 years remaining, that has fixed annual payments.
This offering provides a rare value-add, industrial opportunity within one of the strongest submarkets in the Dallas/Fort Worth metroplex. West Brookhollow, within the greater South Stemmons Industrial submarket, boasts ultra-low industrial vacancy rates due to lack of available land and its proximity to the most dynamic urban areas in North Texas. The West Brookhollow submarket achieved a shallow bay vacancy rate of 2.8% for 2Q 2019.
ADDRESS: 8400 Ambassador Row Dallas, Texas 75247
YEAR BUILT / RENOVATED: 1954 / 1961
NET RENTABLE AREA: 42,420 square feet
LAND AREA: 2.746 acres
OCCUPANCY: 100%
TENANTS: 2
EST. OFFICE FINISH: 13%
WAREHOUSE CLEAR HEIGHT: 14’ - 16’
TOTAL LOADING DOORS: 8
DOCK HIGH DOORS: 5
GRADE LEVEL & RAMPED DOORS: 3
PROPERTY DESCRIPTION INVESTMENT HIGHLIGHTS
The booming industrial market fundamentals, coupled with an infill, highly functional asset, allows for immediate value creation through the mark to market of in-place rates.
LAST MILE INFILL LOCATION
• Demand for infill, light industrial space with
easy access to dense, urban population
centers has become of critical importance
for E-commerce and retail supply chain
configurations
FUNCTIONAL, MULTI-TENANT DESIGN
• Highly functional designs, with specifications
including ideal building depths, low office
finishes, a high density of dock doors and
concrete tilt wall construction
DISCOUNT TO REPLACEMENT COST
• The building is anticipated to trade at a
significant discount to replacement cost in
an irreplaceable infill location
EXCELLENT RENT GROWTH OPPORTUNITY
• The building size of 42,420 square feet is in
a tranche range not heavily served by new
construction
• Owners of similar product are enjoying
significant rental pricing power
• Investors stand to benefit from future
renewals of existing tenants, with in-place
rents approximately 35% below market as
well as upside potential from the residual sale
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W MOCKINGBIRD LANE
DIVID
END D
RIVE
EMPRESS RO
W
PR
OF
IT D
RIV
E
VIC
ER
OY
DR
IVE
35E
35E
JOHN W. CARPENTER FREEWAY (HWY 183)
EXECUTIVE SUMMARY (CONT’D)
2.8% 35% 1.8 WALT >60%CURRENT VACANCY RATE
for Shallow Bay Industrial
in West Brookhollow
IN-PLACE RENTS
Are Approximately
35% Below Market
NEAR TERM EXPIRATIONS
Affords Immediate “Mark
to Market” Approach
of South Stemmons
Industrial Market
is User Owned
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35E
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20
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820
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20
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380
287 377
77
287 377
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377
287 67
175
175
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75
80
380
380
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114
199
360
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183
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114
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205
34
78
DALLASFORT
WORTH
CARROLLTONGRAPEVINE
DECATUR
SAGINAW
KELLER
BENBROOK
MIDLOTHIAN
ARLINGTON
BURLESON
LITTLEELM
FLOWERMOUND
IRVING
RICHARDSON
McKINNEY
PROSPER
PLANO
FRISCO
DENTON
GARLAND
HIGHLANDPARK
UNIVERSITYPARK
MESQUITEGRANDPRAIRIE
ROCKWALL
LANCASTER
ADDISON
DFW Int’lAirport
Fort WorthMecham Int’l
Airport
DallasLove Field
Airport
AddisonAirport
AMBASSADOR ROW
JOHN W CARPENTER FW
Y
N STEM
MO
NS FW
Y
EMPRESS RO
W
BR
OO
KV
IEW D
RIV
E
MOCKINGBIRD
PRO
FIT
DRIVE EM
PIRE
C
ENTR
AL DRI
VE
DIVID
END D
RIVE
MET
ROM
EDIA
PLA
CE
SOVERIGN ROW
35E
183
183
LOCATION OVERVIEW
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LOCATION OVERVIEW (CONT’D)
PROXIMITY TO DALLAS’ LARGEST DEMAND DRIVERSThe property is strategically located minutes away from Dallas’ largest demand drivers, employment centers, and population hubs through its proximity to Interstate 35 (I-35) and Highway 183.
AMBASSADOR ROW
SOV
EREI
GN
RO
W
DIVIDEND DRIVE
HARRY HINES BOULEVARD
METROMEDIA PLACE
IRVING BOULEVARD
W MOCKINGBIRD LANE35E
35E
JOHN W. CARPENTER FREEWAY (HWY 183)
DALLAS CBDUPTOWN / TURTLE CREEK
DESIGN DISTRICT
HIGHLANDPARK
SOUTHWESTERNMEDICAL DISTRICT
UNIVERSITYPARK
PRESTONHOLLOW
John W. Carpenter Freeway
(Highway 183) is less than 500
feet to the northeast of the
subject property, primarily
connected by Dividend
Drive, providing direct access
to a freeway access ramp.
Mockingbird Lane, a major east/
west thoroughfare, in Dallas, is
less than 1-mile to the southeast
and provides immediate access
to North Stemmons Freeway
(Interstate 35E).
DALLAS LOVE FIELD AIRPORT
Generates > $2 Billion Annually to
Local Economy
UPTOWN / TURTLE CREEK
Dallas’ Top Hospitality,
Office & Retail Submarket
DALLAS CBD
Largest Employment Center
in North Texas
PARK CITIES
Texas’ Most Affluent
Neighborhoods
D/FW INTERNATIONAL AIRPORT
Highest-Capacity Commercial
Airport in the World
DESIGN DISTRICT
590-Acre, Nationally Acclaimed
Design Destination
SOUTHWESTERN MEDICAL
DISTRICT
> 2.9 Million Patient Visits Per Year
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DALLAS LOVE FIELD AIRPORT8400 Ambassador Row is located approximately 3.50-miles southwest of Dallas Love Field Airport, a convenient general-use airport that serves as the headquarters for low-cost carrier Southwest Airlines. The airport, which served more than 16.2 million passengers in 2018, underwent a $519 million modernization renovation, including a centralized terminal with 20 gates, a new lobby, expanded baggage claim area, and an expanded passenger garage.
AFFLUENT NEIGHBORHOODSAdjacent to the most affluent residential neighborhoods in Dallas, the South Stemmons Industrial Submarket offers close proximity and convenience for many high net worth individuals and corporate decision makers. The neighborhoods of Highland Park, University Park, Bluffview and Preston Hollow are within 5 to 7 miles of 8400 Ambassador Row. The median household income for communities such as Highland Park and University Park range from $200,208 to $211,741, providing a true “last-mile” location for retailers.
Park Cities by The Numbers
2018 2023
Population 35,915 38,397
Households 11,843 12,566
Median Income $200,208 $211,741
Average Income $253,934 $265,106
Per Capita Income $85,718 $88,677
THE DESIGN DISTRICTOriginally built as a warehouse district by well-known real estate developer, Trammell Crow, the Dallas Design District has evolved into a center for interior design showrooms and art galleries, along with fine dining establishments and most recently, luxury apartments. Through its evolution into an eclectic and upscale neighborhood, the Design District has remained a central hub for the design industry in Dallas, with many wholesale design trade businesses continuing to flourish, and art galleries continue to migrate to the district along Dragon Street.
Virgin Hotel Construction of the 16-story, 268-room Virgin Hotel Dallas at the corner of Turtle Creek and Hi Line Drive began in 2016, and the opening is slated for 2019. The hotel will feature luxury suites, restaurants and bar areas, as well as a rooftop terrace with a pool, spa and gym.
Dallas Maverick’s Practice Facility Mark Cuban, owner of the NBA’s Dallas Mavericks, purchased a two-building, 10-acre site along N. Stemmons Freeway with plans to build a brand new $70 million practice facility.
Long term plans for the area include further development and expansion to the west, including a new 18-story Virgin Hotel and the new Dallas Maverick’s practice facility. The Design District is one of the most vibrant “live-work-play” environments in all of Dallas/Fort Worth.
DEMAND DRIVERS
LOCATION OVERVIEW (CONT’D)
Dallas Love Field by The Numbers• 44,464 – Daily Passengers• 16,229,151 – Total Passengers
• 200 – Daily Non-Stop Flights• 231,110 – Total Operations (2018)
After renovations in 2014, Love Field immediately saw drastic passenger growth and today is the 31st-busiest airport in the United States and busiest medium-hub airport despite its federally mandated cap of 20 gates. Love Field is served by Southwest Airlines (Headquarters), Delta Airlines, and Alaska Air, in addition to numerous private aviation companies. The impact of the airport has greatly increased traffic to the surrounding area, including 8400 Ambassador Row, which has and will continue to positively impact demand for office and industrial space as well as land values.
• 1st – Largest Medium-Hub Airport in Nation
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DIVIDEND DRIVE
AM
BA
SSA
DO
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OW
SITE PLAN
BUILDING SPECIFICS
Loading Docks: Dock-High (5)
Loading Ramps: 2
Grade Level Doors: 1
Clear Height: 14' - 16’
Fire Sprinklers: No
Foundation: Reinforced-Concrete Slab
Building Structure: Masonry & Steel Frame
Floor Coverings:Warehouse floor areas have an
unpainted smooth concrete finish
Water/Sewer: City of Dallas
Electricity:Deregulated - Submetered to each
Tenant suite
Natural Gas: Atmos Gas
Warehouse Lighting: Fluorescent Lighting
Zoning: IR-Industrial Research
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NINE BIGGEST DFW CORPORATE RELO’S
+/- 2,000,000 SF Richardson | 8,000 Workers
+/- 1,000,000 SF Plano | 6,000 Workers
+/- 2,000,000 SF Plano | 4,000 Workers
+/- 1,000,000 SF Plano | 4,000 Workers
+/- 500,000 SF Las Colinas | 1,875 Workers
+/- 500,000 SF Richardson | 1,700 Workers
+/- 327,000 SF Irving | 1,300 Workers
+/- 325,000 SF Irving | 1,200 Workers
+/- 265,000 SF Plano | 1,200 Workers
OVERVIEW The Dallas / Fort Worth Industrial market is the 5th largest in the United States, containing approximately 838
million square feet of buildings as of the second quarter of 2019. As a top five industrial and distribution market, D/FW
continues to be one of the most attractive in-fill markets for investments.
The market wide vacancy rate was 6.3% at the end of the 2Q 2019. The vacancy rate has improved steadily over
the prior three years from a peak in excess of 12% and continues to show strong signs of improvement with expansions,
solid retention, and new move-ins to the market. The 15-year historical vacancy rate in D/FW is 9.5% which statistically
indicates a balanced supply and demand set. As the market fundamentals surpass the historical supply and demand
balance, development activity has picked up significantly in recent quarters with absorption out pacing new deliveries.
HISTORICAL NET ABSORPTIONThe D/FW industrial market has experienced nearly 9 consecutive years of positive net absorption. Year-to-date net
absorption for the overall D/FW Industrial market was positive 11.2 million for the period ending 2Q 2019.
DFW INDUSTRIAL OVERVIEW
10 MM SF
8 MM SF
6 MM SF
4 MM SF
2 MM SF
02010Q4
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CONFIDENTIALITY& DISCLAIMER
MARKET EXPERT:
JASON MOSER
Senior Vice President
214.267.0451
INVESTMENT SALES TEAM:
JAMIE JENNINGS
Managing Director
214.267.0452
ANDREW RABINOVICH
Senior Financial Analyst
214.560.5111
CONFIDENTIALITY & DISCLAIMERThe information contained in this package is furnished solely for the purpose of review by a prospective purchaser of 8400 Ambassador Row (the “Property”) in
Dallas, Texas and is not to be used for any other purpose or made available to any other person without the express written consent of Stream Realty Partners,
L.P., Property Owner or any of their respective affiliates (“Stream”). The information contained in this package is from sources deemed reliable, but is not
guaranteed by Stream or Owner in any way and is subject to change in price, corrections, errors and omissions, prior sale, or withdrawal without notice.
Summaries of any documents are not intended to be comprehensive or all-inclusive, but rather a general outline of the pertinent provisions contained herein.
Prospective purchasers should rely upon their own financial projections and conclusions without reliance upon the material contained herein and conduct their
own independent due diligence, including engineering and environmental inspections, to determine the condition of the Property and the existence of any
potentially hazardous material used in the construction or maintenance of the Property or located at the site.
No copies of this package may be made in whole or in part without the prior written consent of Stream or the Property Owner. This package is the property of
Stream and may be used only by parties approved by Stream or the Property Owner. The Property is privately offered and, by accepting this package, the party
in possession hereof agrees that the package and its contents are of a confidential nature and will be held and treated in the strictest confidence.
