Capital Markets Offering Summary FOR SALE ECHO LOCUM TENENS. Single Tenant Investment Opportunity Texan Trail Grapevine, Texas 76051

Transcription

1 Capital Markets Offering Summary FOR SALE ECHO LOCUM TENENS Single Tenant Investment Opportunity 1058 Texan Trail Grapevine, Texas 76051

2 PIERSON RETAIL ADVISORS is pleased to offer a single-tenant medical office building opportunity located within Grapevine Station Office Park in Grapevine, Texas. The Property is comprised of two buildings totaling 7,454 square feet of office space and is 100% leased to Echo Locum Tenens, a physician-led consulting organization which provides temporary practitioner staffing for hospitals, primary care clinics, and urgent care clinics throughout the country. The parent company for Echo Locum Tenens, Sound Inpatient Physicians, Inc., was recently acquired by Fresenius Medical Care Holdings, Inc. a multi-billion dollar company (revenue was $15.8 billion in 2014) traded on the NYSE as FMC. Constructed in 2013, the buildings are of quality architecture and high-end, state of the art design. The Property is situated on approximately 1.07 acres of land located within minutes of the Gaylord Texan Resort & Convention Center, Great Wolf Lodge, and Grapevine Mills Mall. Furthermore, Echo Locum Tenens medical office is centrally located between Dallas and Fort Worth, and just three minutes from DFW International Airport. Price: $2,245,000 Current NOI $163,988 Go-In Return 7.30% Tenant: Guarantor: Lease Commencement: May 1, 2014 Occupancy: 100% Echo Locum Tenens, Inc. Sound Inpatient Physicians, Inc. Annual Rent: Months 1-36 $163,988 Months $175,169 Expiration: April 30, 2020 Renewal Option: Reimbursements: Landlord Responsibilities: Buyout Option: One 5-year renewal option at $182,623 / year. Tenant reimburses Landlord for CAM, real estate taxes and insurance. Landlord is responsible for roof and structure. Tenant has the one-time option to buy out of this lease after the Sixtieth (60) month with Six (6) months written notice to LL. Tenant agrees to pay LL in cash at time of notice, a buyout penalty equal to Six (6) months worth of Minimum Guaranteed Rent plus NNN s. PROPERTY DESCRIPTION Address: 1058 Texan Trail Grapevine, Texas Tarrant County Legal Description: Grapevine Station Blk 1 Lot 1R2 Building Area: 7,454 square feet Land Area: ± 1.07 acres or ± 46,522 square feet Configuration: One, one-story buildings Year Built: 2013 Parking: ± 67 surface spaces Parking Ratio: ± 8.99 per 1,000 SF Structure: Concrete tilt wall with brick and stone veneer Age of Roof: 2013 HVAC: Individual roof-mounted units Traffic Counts: Texan Trail ± 15,143 vpd E. Northwest Highway ± 28,678 vpd State Highway 26 ± 31,737 vpd (source CoStar) Debt: Unencumbered; available for new market rate financing. Echo Locum Tenens DALLAS, TX 2

3 TENANT PROFILE (Source: Echo Locum Tenens is a growing, high-performing physician-led consulting organization. Echo was founded in 2011 to provide temporary practitioner staffing for acute care hospitals, primary care clinics, and urgent care clinics nationwide. ECHO Locum Tenens is an affiliate organization of Sound Physicians. Why partner with Echo Locum Tenens? Our priorities are aligned with yours - opportunities to deliver high-quality patient care, one day at a time. As a physician, you can expect consistently rewarding assignments working alongside high-performing hospitalist team members. We are passionate about delivering superior service to both practitioners and healthcare facilities. Our teams are dedicated to the organization s core values of quality, service, teamwork, innovation and integrity. These values are central to the success of each placement. Experience the Echo Locum Tenens difference - we create assignments that make it satisfying for you to work with us over and over again. QUALITY Dedication to creating the best clinical outcomes and processes SERVICE Strives to exceed the expectations of our patients and the medical community TEAMWORK Commitment to collaboration in care INNOVATION Creative and skillful problem solving that drives improvement INTEGRITY Honor commitments to our patients, our practice, and our partner hospitals Echo Locum Tenens DALLAS, TX 3

4 PHYSICIANS Locum tenens is a mainstream practice option at different stages of your career. Residents and Fellows: Making an early career decision? Many residents and fellows opt for locum tenens as a way to get a feel for what practicing hospital medicine is like outside of residency and fellowship. It allows you to test drive a position prior to entering into a long-term employment agreement. Echo Locum Tenens can be the perfect option to fill your gap year between residency and fellowship. During your gap year you will have the opportunity to work with high-performing teams of hospitalists who are on the leading edge of driving performance in hospital medicine. You will also enjoy the benefits of a fulltime employed colleague. Mid-Career Physicians: Thinking about a change? Explore opportunities in different geographic areas and practice settings prior to making long-term commitments. The role of a locum tenens hospitalist offers a unique opportunity to make the right career decision for you and your family. Primary Care and Outpatient Physicians: We offer practice opportunities in outpatient medicine, internal medicine, family medicine, pediatric medicine, occupational medicine, and urgent care settings. Late-Career Physicians: Not quite ready to retire? Locum tenens offers experienced physicians an opportunity to work when and where they desire. Utilize your skills and desire to work in the inpatient environment, delivering high-quality inpatient care with engaged physician teams. Regardless of where you are in your career ECHO Locum Tenens makes the process easy to find the opportunities that best meet your needs. HEALTHCARE FACILITIES Echo Locum Tenens providers serve an essential role in delivering high-quality patient care. A good locum tenens experience starts with making the right connections. From the start of our relationship, we want to clearly establish what s most important to your facility or physician group. Our priority is to ensure there is a mutual appreciation for the healthcare facility, the physicians and consulting team we place in your facility. Once we have a common understanding, our group will get to work straight away, finding the right providers to deliver coverage and become an important part of your community - for a day, a week or longer. After we place the first provider at your facility, we know you ll want to work with us again and again. We want your experience to be so effective and simple that you will come to count on our services whenever the need for interim staffing is required. Echo Locum Tenens DALLAS, TX 4

5 LOCATION MAP Echo Locum Tenens DALLAS, TX 5

6 SITE PLAN Echo Locum Tenens DALLAS, TX 6

7 DEMOGRAPHICS ONE-MILE RADIUS THREE-MILE RADIUS FIVE-MILE RADIUS 2015 Estimated Population 5,585 26, ,611 POPULATION 2020 Projected Population 6,187 29, , Census Population 4,503 23,473 92,574 Growth % 9.12% 8.51% Growth % 14.11% 9.76% 2015 Estimated Households 2,334 11,069 38,124 HOUSEHOLDS 2020 Projected Households 2,579 12,052 41, Census Households 1,914 9,837 34,883 Growth % 8.88% 8.44% Growth % 12.52% 9.29% INCOME 2015 Avg Household Income $83,764 $83,036 $122, Med Household Income $63,597 $62,769 $93,426 White 5,047 23,978 85,997 POP BY RACE Black 255 1,152 4,051 Am Indian & Alaskan Asian ,666 Hawaiian & Pacific Island Other ,049 Echo Locum Tenens DALLAS, TX 7

8 MARKET SUMMARY - DALLAS/FORT WORTH, TEXAS INTRODUCTION The Dallas/Fort Worth Metroplex (Dallas/Fort Worth, DFW) is a dynamic 12-county region made up of Dallas, Fort Worth, and another 150 municipalities. The Dallas area is the largest metropolitan area in Texas and the fourth-largest in the United States spanning an area of 9,286 square miles and a population of approximately 6.3 million people. As the fastest growing metropolitan area, DFW led the nation in population growth over the last decade, adding 1.3 million people for a 25% growth rate. By the year 2030, it is projected that over 9.2 million people will be living in the Metroplex. DFW also has the largest, most educated workforce in the state of Texas, totaling three million people, and leads the state in public university and community college students (442,000). The largest of the major universities within the area are the University of North Texas (35,754), the University of Texas at Arlington (33,439) and the University of Texas at Dallas (18,864). DFW accounts for one-third of the state s Gross Domestic Product and approaches $60 billion in annual direct imports and exports. The Metroplex is currently the fifth-largest global exporter in the country and largest regional exporter to Canada, Mexico and China. Over the past decade the area has enjoyed a sustained period of economic and population expansion as local companies increase their business capacity and others relocate to this desirable, central U.S. location. STRONG JOB GROWTH One of the nation s most dynamic markets, Dallas/Fort Worth is consistently a top market for job and population growth. In May of 2012, Forbes ranked DFW #6 on its Best Big Cities for Jobs list, which also included three other major Texas metros. Historically a leader with respect to job growth, Dallas/Fort Worth added 107,300 jobs between January 2012 and January Employment in DFW rose 3.7%, while the national employment rate only rose 1.5%. DFW s unadjusted unemployment rate of 6.2% remains well below the national rate of 7.6% and is expected to improve through Moody s Economy.com also projects consistent positive job growth for the DFW metro over a five-year period ending According to their projections, DFW will add more than 360,000 jobs, making it one of the top US metro areas in terms of job growth over that time. This is further supported by Pierson Retail Advisors Econometric Advisors, which forecasts continued positive employment growth for DFW over the next five years. Nationally recognized as one of the best markets for business, Forbes named Dallas/ Fort Worth the 8th Best City for Businesses and Careers in The uncertainty caused by the recession put several moves on hold, but recent economic confidence had Pizza Hut, Denbury Resources, and Methodist Healthcare Systems calling Plano home in spring In addition, advancing information technology has created a need for data centers across the country and the Metroplex has proven to be a preferred site. Rare occurrence of natural disaster, a central location and plenty of available electric power provide the ideal setting for these information centers. During 2010, DFW was selected by 127 companies as the site of either a corporate expansion or relocation, topped by only Chicago and Houston. DFW was also ranked #4 in a recent article by MainStreet News of top 20 cities surviving the recession, adding more proof of how the area is outperforming the rest of the nation economically. ATTRACTIVE CORPORATE LOCATION Dallas/Fort Worth is home to more than 1,500 regional and corporate headquarters, the largest concentration in the U.S. The Metroplex is also home to 18 Fortune 500 headquarters and three Global 500 headquarters, according to Fortune Magazine. This includes Irving-based ExxonMobil, which ranked 2nd both nationally and globally, and AT&T, which was ranked eleventh on the 2013 list. As the Southwest s leading business and financial center, the area boasts the largest wholesale market in the world. With fundamentals that few other markets can match, DFW has capitalized on its central U.S. location, unparalleled transportation network, operating and living costs well below national averages, pro-business government, Echo Locum Tenens DALLAS, TX 8

9 critical mass of existing corporate headquarters and offices, favorable yearround climate, and attractive Sunbelt location. The latest influx of population has generated a very young, diverse mix of citizens (median age of 32.7, compared to the national average of 37.7) further benefitting the economic market. The area boasts a major metropolitan quality of life with amenities including the arts, professional sports organizations and a wide array of entertainment destinations. Among the largest industries in the area are health, tourism, logistics, electronic commerce and financial services. ECONOMY AND FORECAST Driven by continued job growth and expansion, the Dallas/Fort Worth Metroplex is outpacing the national economy in most relevant statistics. Like the other metros in the state of Texas, a business friendly climate combined with growing population and economy has caused the area to become an attractive location for expansion of reputable companies. Case in point, State Farm has expanded its office presence in the area by over 400,000 SF and is expected to have 2.5 MSF of office space once its campus is completed next year. The area has also become an attractive relocation destination for outside employers. Some of the most recent moves include Advanced H20, Alcon, Cisco, Coaire Corp, Kohler, MoneyGram and Q-Edge. Several of the newly arriving companies cited lower costs of doing business as well as proximity to transportation, including the Dallas/Fort Worth International Airport, the network of interstates and highways, and the area s commuter and freight rail network. Dallas/Fort Worth has been on the receiving end of several large corporate relocations over the past year. Christus Health has been the most recent corporate relocation, consolidating their Houston and San Antonio headquarters in Irving. This has brought more than 650 employees into the Dallas area. Another notable move has been AT&T s migration from San Antonio to downtown Dallas, with nearly 700 of the San Antonio-based employees making the trek north. By revenue, AT&T is now the second-largest company based in the Dallas/Fort Worth area behind ExxonMobil and also employs more than 14,000 people throughout the region. Recent reports published by Moody s Economy.com states that the Dallas recovery has strengthened and is on the verge of expansion. Its strengths include a stable demand for professional services generated by the high concentration of corporate headquarters as well as being well positioned as a distribution hub for international trade coming to the southwest. This will be further helped by the completion of the American Airlines merger later this year, which will produce the nation s largest airline. This is expected to increase passenger volume and provide support to the hospitality, retail and travel industries. POPULATION Dallas Fort Worth is currently the fourth largest metropolitan area in the United States, with around 6.7 million people. As one of the nation s fastest growing MSAs, Dallas/Fort Worth saw an explosion in population growth over the last thirteen years, adding an estimated 1.5 million people, or a 29.9% growth rate, between 2000 and Dallas/Fort Worth also saw the greatest increase in population in the country between July 2011 and July 2012, adding nearly 132,000 people to the region during that period. Nielson Claritas estimates that DFW s population will grow by an additional 8.6% over the next 5 years to reach over 7.2 million by By 2040, DFW s population is expected to approach 10.5 million. TRANSPORTATION ADVANTAGES Dallas/Fort Worth is served by an excellent infrastructure of highways and interstates, rail, major airports and public transportation systems. Home to some of America s largest inland ports, the central location and international airport system give businesses a competitive advantage in the national and international marketplace. Markets anywhere in the country or the world can be easily accessed from the region, making DFW a center of distribution activity for regional, national and international operations. Echo Locum Tenens DALLAS, TX 9

10 Dallas/Fort Worth International Airport, larger than the island of Manhattan, is the fourth-busiest airport in the country and the eighth-busiest airport in the world in terms annual passenger counts. DFW Airport logs approximately 700,000 annual flights that service over 60 million passengers to nearly 200 worldwide destinations. Home to American Airlines, the nation s largest carrier, DFW Airport has earned a reputation as one of the best-operating airports in the world. Its annual economic impact on the North Texas economy totals more than $16.6 billion and the airport supports over 300,000 jobs. Additionally, the $2.7 billion Capital Development Program at the airport will generate an additional $34 billion in economic impact and create 77,000 new jobs over the next 15 years. Dallas is also home to Love Field, home base for Southwest Airlines and one of the premier close-in airports in the nation. Located in the heart of Dallas, Love Field provides a convenient and efficient airport serving both commercial airline and corporate user needs, transporting seven million passengers annually. With the passage of the Wright Amendment Reform Act in 2006 which will completely repeal Wright Amendment restrictions by 2015 Southwest Airlines will be adding additional nonstop flights across the country. In 2009, a $519 million capital improvement project was initiated that includes terminal upgrades and facility expansion set for completion in including Birmingham and Atlanta. Interstate 635 partially loops Dallas and links commuters to several major thoroughfares such as the Dallas North Tollway, US-75 (North Central Expressway) and Interstate 30. The George Bush Turnpike is Dallas newest 30.5-mile, six-lane, limited access expressway passing through or along Dallas and surrounding suburbs. Dallas Area Rapid Transit (DART) is an extensive network of modern public transit services. DART covers 700 square miles in Dallas and 13 surrounding suburban communities, serving million passengers. In conjunction with DART Rail, Trinity Railway Express (TRE) and bus services, DART moves more than 360,000 passengers each day across the Metroplex. A report from the University of North Texas Center for Economic Development and Research projects that recent and planned development of the DART light-rail line will create an average of 6,400 jobs per year through 2014, generating an additional $5.6 billion in North Texas economic activity. In terms of infrastructure, DFW is served by six interstates, seven other U.S. highways and numerous state highways. Interstate 35 serves as a north and south artery throughout the Metroplex and the central U.S., stretching from the US-Mexico border to Duluth, Minnesota. Interstate 20 is a major east-west artery that continues 1,538 miles to connect DFW with other major southern cities Echo Locum Tenens DALLAS, TX 10

11 For more information, please contact: :: Jennifer Pierson :: Beth Pierson President and CEO Vice President Operations O O C C jp@piersonretailadvisors.com Beth@PiersonRetailAdvisors.com :: Debora Haught Client Services Director O Debora@PiersonRetailAdvisors.com Retail Investment Sales Pierson Retail Advisors 2015 The information contained in this document has been obtained from sources believed reliable. While Pierson Retail Advisors, Inc. does not doubt its accuracy, Pierson Retail Advisors, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. Capital Markets Investment Properties