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INVESTMENT SERVICES
SHOPS AT NORTH TARRANTFORTH WORTH, TEXAS
Stabilized Retail Center Offered by
INVESTMENTSALESWILL WALTERS
W.P. HENDERSON
Partner
4403 N. Central Expy, Suite 200Dallas, Texas 75205
Senior Associate
Investment Services
Investment Services
214.675.3665
409.767.0601
214.720.0004
INVESTMENT SERVICES
The information contained in this Offering Memorandum is confidential andfurnished solely for the purpose of a review by a prospective purchaser of the retailshopping center known as Shops at North Tarrant located at 5601 N. TarrantParkway, Fort Worth, Texas 76244, being approximately 11,760 square feet ofimprovements and situated on 2.31 acres of land (“the “Property”). It is not to beused for any other purpose or made available to any other person without theexpress written consent of Seller or DuWest Realty, LLC (“DW”). The material hereinis based in part upon information supplied by the Seller and in part upon informationobtained by DW from sources it deems reliable. No representation or warranty,expressed or implied, is made by the Seller, DW, or any of their respective affiliatesas to the accuracy or completeness of the information contained herein.Prospective purchasers should conduct their own independent investigation,conduct their own due diligence, and form their own conclusions without relianceupon the material contained herein. A prospective purchaser’s sole and exclusiverights with respect to this prospective transaction, the Property, or informationprovided herein or in connection with the sale of the Property shall be limited tothose expressly provided in an executed Purchase and Sale Agreement and shallbe subject to the terms thereof. In no event shall a prospective purchaser have anyother claims against Seller or DW or any of their affiliates or any of their respectiveofficers, directors, owners, or agents for any damages, liability, or causes of actionrelating to this solicitation process or the marketing or sale of the Property.Prospective purchasers are not to construe the contents of this OfferingMemorandum or any prior or subsequent communication from DW or Seller or theiraffiliates or any of their respective officers, directors, owners, or agents as legal, tax,or other advice. Prior to forming their acquisition value of the Property, prospectivepurchasers should consult with their own legal counsel and tax advisors todetermine the consequences of an investment in the Property and arrive at anindependent evaluation of such investment.
STATEMENT OF CONFIDENTIALITY AND DISCLAIMER:
INVESTMENT SERVICES3
INVESTMENTOVERVIEW
SITE SIZE
2.31 ACRES / 100,624 SF
ADDRESS
5601 N TARRANT PARKWAYFORT WORTH, TEXAS 76244
CITY
FORT WORTH
COUNTY
TARRANT
CONSTRUCTION YR
2018
BUILDING SIZE
11,760 SF
PARKING SPACES
68 REGULAR (+5 HC)
AVERAGE RENT PSF
$29.93
NOI
$361,732
TRAFFIC COUNTS
N. TARRANT PKWY: 34,222 VPDHIGHWAY 377: 41,871 VPD
OWNERSHIP
FEE SIMPLE
OCCUPANCY
100%
TAX PROPERTY ID
42059109
DuWest Investment Services is pleased to offer for sale the Shops at North Tarrant, a 5-tenant, 12,000square foot retail center located in the thriving north Fort Worth submarket along N. Tarrant Parkway. Theproperty is situated between a new Kroger Signature store and land to be developed in the future by H-E-B. Constructed in 2018, the center features high quality construction and an architecturally currentdesign. The monument sign in front of the center is also consistent with first-class construction. Shops atNorth Tarrant has excellent visibility along N. Tarrant Pkwy that carries over 34,000 vehicles per day.
One of the strongest features of the property is the fact that none of the tenants requested or weregranted rent deferment during the Covid-19 shutdown. As the ongoing pandemic has been the mostsignificant stress test for retail tenants since the Great Recession, the fact that all tenants are currenthighlights the tenancy’s strong credit and commitment to the center.
The contractual rent growth is also a strong component of the center. Each lease features at least 2%annual increases bolstering the investor’s IRR and ensuring a reliable exit at a higher Net OperatingIncome. Additionally, the average rent in the center is just under $30 per square foot, a healthy numbercompared to similar 2018 vintage DFW retail. The Shops at North Tarrant is situated in an outstandingsubmarket with strong demographics and a low vacancy level. In the center’s primary trade area (1-mileradius), the population is 17,450 with an average household income of over $108,000. The density andhigh incomes combine for a safe long-term investment for any retail investor.
The offering also includes approximately 24,000 square feet of developable land behind the retail centerthat could be developed into a variety of uses including daycare, small office or warehouse. There isspace on the large monument sign for these future tenants and the owner could further benefit from theadditional signage income.
LOCATION MAP5601 N TARRANT PARKWAY, FORT WORTH, TEXAS 76244
FORT WORTH
INVESTMENT SERVICES5
REGIONAL MAP5601 N TARRANT PARKWAY, FORT WORTH, TEXAS 76244
INVESTMENT SERVICES6
AERIAL VIEWLOOKING NORTHEAST
AERIAL VIEWLOOKING NORTHWEST
INVESTMENT SERVICES7
AERIAL VIEWLOOKING NORTHWEST
INVESTMENT SERVICES8
INVESTMENT SERVICES9
AERIAL VIEWLOOKING SOUTHWEST
INVESTMENT SERVICES10
AERIAL VIEWLOOKING SOUTH
INVESTMENT SERVICES11
INVESTMENT SERVICES12
TENANTPROFILES
tropicalsmoothiecafe.com
Tropical Smoothie Cafe is a blended beverage concept that was foundedin Tallahassee Florida in 1997. The focus on providing communities healthyalternatives to traditional meals. Dyne Hospitality Group is the franchisee forthis Tropical Smoothie. DHG operates nearly 70 Tropical Smoothie locationsacross the southeastern part of the united states. They are the largestTropical Smoothie franchisee. This lease carries a guaranty.
venetonailbarfortworth.com
Vento Nail bar is a local salon operator that has over 10 plus years ofoperating experience as a nail salon in the DFW Metroplex. Their servicesinclude manicure, pedicures, waxing, and massages. This lease carries twopersonal guarantors.
tuneupsalon.com
Tune up Manly Salon is a Texas-based company that offers a wide varietyof salon services tailored toward male clients. Currently Tune Up has over 45locations across the state that they operate through a variety of franchiseeoperators. This lease has a personal guaranty.
spice8.com
Spice 8 Indiana Fusion Grill is a locally owned fast casual Indiana restaurant.They focus on bowl style dishes, wraps, and pizzas that use fresh ingredients.The restaurant has a great local following and carries a 4.6 star rating onGoogle with almost 300 reviews. This restaurant has a large take outpresence with users such as Grubhub, DoorDash, and UberEATS. This leasecontains two personal guarantors.
dekalash.com
Deka Lash is a national eye lash salon operator that currently has 100locations cross the United States that they operate through a variety offranchisees. There are currently five locations across the DFW metroplex.They offer a wide variety of services that include: eye lash extension, lashlifting, and multiple eye lash designs and stylings. This lease carries apersonal guaranty.
INVESTMENT SERVICES13
RENT ROLL
CURRENT TERM CURRENT BASE RENT RENTAL INCREASES
SUITE TENANTSIZE(SF)
% OFTOTAL START EXPIRE PSF ANNUAL MONTHLY DATE PSF ANNUAL
CAMRECOV. RENEWAL OPTIONS
5605 Tropical Smoothie Cafe(TX42 TSC, LLC)
1,600 13.6% 5/5/2018 5/31/2028 $36.41 $58,256 $4,855 Jun-21Jun-22Jun-23Jun-24Jun-25Jun-26Jun-27
$37.14$37.88$38.64$39.41$41.00$41.82$42.66
$59,424$60,608$61,824$63,056$65,600$66,912$68,256
NNN6% Capon CAM
Two, 5-Year OptionsOption #1 - 2% Annual IncreasesOption #2 - 2% Annual Increases
5609 Deka Lash(Camalsi OCONN, Inc)
1,400 11.9% 3/18/2018 3/31/2023 $29.15 $40,810 $3,401 Apr-21Apr-22
$29.71$30.31
$41,600$42,432
NNN Two, 5-Year OptionsOption #1 - 2% Annual Increases
Option #2 - FMV
5617 Veneto Nail Bar(Andy Tran and Vinh
Dang)
4,000 34.0% 5/17/2018 5/31/2028 $27.58 $110,320 $9,193 Jun-21Jun-22Jun-23Jun-24Jun-25Jun-26Jun-27
$28.41$29.26$30.14$31.04$31.97$32.93$33.92
$113,640$117,040$120,560$124,160$127,880$131,720$135,680
NNN Two, 5-Year OptionsOption #1 - 3% Annual IncreasesOption #2 - 3% Annual Increases
5629 Tune Up Manly Salon(Eyler Corporation)
2,260 19.2% 10/4/2018 10/31/2023 $30.46 $68,840 $5,737 Nov-20Nov-21Nov-22
$31.21$31.84$32.47
$70,534$71,958$73,382
NNN Two, 5-Year Options at FMV
5633 Spice 8 Indian Fusion Grill(Kathmandu Kitchen, LLC)
2,500 21.3% 6/7/2018 6/30/2028 $29.50 $73,750 $6,146 Jul-21Jul-22Jul-23Jul-24Jul-25Jul-26Jul-27
$30.00$30.50$31.00$31.50$32.00$32.50$33.00
$75,000$76,250$77,500$78,750$80,000$81,250$82,500
NNN Two, 5-Year OptionsOption #1 - $36.30 Flat
Option #2 - FMV
Total OccupiedTotal VacantTotal GLA
11,7600
11,760
100.0%0.0%
$29.93 $351,976 $29,331
INCOME & EXPENSE
CURRENT PSF
Real Estate Taxes $106,900 $9.09
Property Insurance $4,704 $0.40
Common Area Maintenance
Electricity $3,256 $0.28
Water/Sewer $8,867 $0.75
Trash Removal $10,342 $0.88
Repair & Maintenance $6,437 $0.55
Landscaping $5,664 $0.48
Fire Alarm/Sprinkler $2,185 $0.19
Total Common Area Maintenance $36,751 $3.13
Management Fee (4.0%) $17,570 $1.49
TOTAL EXPENSES $165,925 $14.11
IN-PLACE PSF
Base Rent $355,732 $30.25
Signage Income $6,000 $0.51
Expense Reimbursements $165,925 $14.11
Gross Revenue $527,657 $44.87
Operating Expenses $165,925 $14.11
NET OPERATING INCOME $361,732 $30.76
2020 BUDGETED EXPENSES INCOME AND EXPENSEYEAR ENDING SEPTEMBER, 2021
INVESTMENT SERVICES14
OCCUPANCY100%
PRICE$5,400,000
RETAIL:
CAP RATE6.70%
PRICE PSF (BLDG)$459.18
PRICE PSF (LAND)$53.67
NOI$361,732
CONTRACTUAL RENT GROWTH(FIRST 3 YEARS)
$25,020
AVERAGE RENT PSF$29.93
PRICING
INVESTMENT SERVICES15
INVESTMENT SERVICES16
The subject center is conveniently located in a dense retail corridor in the northFort Worth submarket less than 3-miles east of I-35 (Over 161,000 VPD) on NorthTarrant Parkway (34,222 VPD) a major east-west thoroughfare in the market.Additionally, this center is less than half a mile to US Highway 377 (41,871 VPD)and is directly between Keller and Watauga.
The north Fort Worth submarket has seen significant growth over the pastdecade largely due to Hillwood’s Alliance development, a 26,000-acre masterplanned community that is home to major corporations such as Facebook,Amazon, BNSF, and Mercedes-Benz Financial Services. Within this developmentyou will see a wide variety companies and real estate asset types all fueled byjob growth and population growth within the area. Last year alone,AllianceTexas added more than $7 billion to the economy and has had an$83.74 billion impact on the North Texas economy since inception. Thisdevelopment along with many others has spurred significant population growthin the area. The population within a 5-mile radius surrounding the subject centerexperienced a 23% increase in population since 2010, going from 253,777residents to 311,834. This area has strong household income figures with theaverage household earning over $105,000 and over 93% of the education basehas a high school diploma or GED. As this part of the metroplex continues to seemeaningful economic development, it is expected that the population densitywill continue to increase well into the future.
Other notable retailers in the immediate area include: Target, Lowes, Marshalls,Petco, Starbucks, Academy Sports, Aldi, Kroger, McDonalds, Sprouts, HomeDepot, T-Mobile, Burger King, Panera Bread, 7-Eleven, and many others
SUBMARKETOVERVIEW
DEMOGRAPHICS1 MILE 3 MILE 5 MILE
POPULATION
2019 Population 17,452 143,685 311,834
2010 Population 14,213 125,141 253,777
% Proj Growth 2019 - 2024 1.5% 1.15% 1.61%
HOUSEHOLDS
2019 Households 5,568 47,536 107,859
Family Households w Children 4,568 37,724 81,508
Persons Per Household 3.1 3.0 2.9
DAYTIME POPULATION
Total Daytime Population 13,878 98,060 240,989
Workers 5,871 30,874 92,056
Residents 8,007 67,186 148,933
RACE
% White 69.8% 78.7% 73.1%
% Black 10.6% 8.2% 8.4%
% Asian 8.7% 8.3% 7.3%
% Other 10.9% 4.8% 11.2%
White 12,181 113,080 227,951
Black 1,850 11,782 26,194
Asian 1,518 11,926 22,764
Other 1,902 6,897 34,925
1 MILE 3 MILE 5 MILE
AGE
Median Age 32.9 34.6 34.7
INCOME
2019 Average Household Income $108,255 $105,208 $105,786
2019 Per Capita Income $34,215 $34,925 $36,530
HIGHEST EDUCATIONAL ATTAINMENT
Education Base - Age 25+ 10,949 93,103 201,938
Less than 9th Grade 1.2% 2.4% 2.5%
Some High School 3.2% 4.2% 4.0%
High School or GED 21.8% 20.1% 20.3%
Some College 26.8% 25.0% 24.7%
Associates Degree 7.9% 9.3% 9.2%
Bachelors Degree or Higher 39.1% 39.1% 39.3%
POPULATION BY EMPLOYMENT TYPE
% White Collar 69.9% 68.1% 68.3%
% Blue Collar 14.9% 16.2% 17.0%
% Services 15.2% 15.6% 14.6%
HOUSING
% Renter Occupied Housing Units 24.2% 22.9% 27.9%
% Owner Occupied Housing 73.6% 74.5% 69.5%
HOUSING VALUES (OWNER OCCUPIED)
Median Home Value $199,783 $196,859 $220,329
DATA SOURCE: © 2020 ESRI. ALL RIGHTS RESERVED
17INVESTMENT SERVICES
SHOPS AT NORTH TARRANTFORT WORTH, TEXAS
WILL WALTERS
W.P. HENDERSON
Partner
Senior Associate
Investment Services
Investment Services
214.675.3665
409-767-0601
18INVESTMENT SERVICES
