EXCLUSIVE OFFERING $2,943, % CAP FIRST CHOICE EMERGENCY ROOM

Transcription

1 SUBJECT PROPERTY EXCLUSIVE OFFERING $2,943, % CAP JOE CAPUTO BOB MOORHEAD RUSSELL SMITH J. GRADY FIELD property. Building renovated in 2013, 6,000+ SF building on acres. tenant. First Choice Emergency Room is based in Lewisville, TX and is the leading freestanding emergency room system. $78.2 million in sales in lease structure. Brand new, 10-year, NNN lease with 10% rent increases in year 6 and each option period. location. First Choice Emergency Room sits on the frontage road of Texas State Highway 121 (102,950 Cars / Day) just north of Glade Road (29,133 Cars / Day). The subject property is surrounded by Albertson s, Subway, GNC, Chase Bank, Bank of America, BBVA Compass, Valero, Rio Mambo and Mac s Seafood and Steakhouse. Other major retailers in the immediate area include Super Target, 7-Eleven, Chick-fil-a, Panda Express, Lowe s, Starbucks, Ross, Marshalls, Bed Bath & Beyond, Famous Footwear, Staples, Raising Cane s and many more. Colleyville is a city within the Dallas-Fort Worth Metroplex located roughly 12 miles west of the Dallas-Fort Worth International Airport, and 15 miles northeast of downtown Fort Worth.

2 Table of contents Disclaimer PAGE 1: PAGE 2: PAGE 3: PAGE 4: PAGE 5: PAGE 6-7: PAGE 8: PAGE 9: PAGE 10-11: PAGE 12: COVER TABLE OF CONTENTS DISCLAIMER INVESTMENT TENANT LEASE OVERVIEW SITE PLAN AERIAL PHOTO PROPERTY PHOTOS LOCATION OVERVIEW IPO PRESS RELEASE LOCATION MAPS DEMOGRAPHICS SUBJECT PROPERTY Disclaimer EXP Realty Advisors, Inc. ( Agent ) has been engaged as an agent for the sale of the property located at 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. 2

3 Investment overview PRICE: $2,943,000 CAP RATE: 6.75% NET OPERATING INCOME: $198,600 BUILDING AREA: 6,000+ Square Feet Lease overview Initial Lease Term: 10-Years*, Plus 4, 5-Year Options to Renew Rent Commencement: September 2013 Lease Expiration: September 2023 Lease Type: NNN LAND AREA: Acres Rent Increases: 10% in Lease Year 6 & Every Option Period YEAR BUILT / RENOVATED: LANDLORD RESPONSIBILITY: None OWNERSHIP: Fee Simple Interest OCCUPANCY: 100% Tenant overview Guarantor: First Choice ER, LLC Year 1-5 Annual Rent (Current): $198,600 Year 6-10 Annual Rent: $218,460 Year Annual Rent (Option 1): $240,300 Year Annual Rent (Option 2): $264,300 Year Annual Rent (Option 3): $290,760 Year Annual Rent (Option 4): $319,800 *Tenant Has Right To Terminate At End Of Year 7 With 6 Months Prior Notice First Choice Emergency Room is based in Lewisville, TX and is the leading freestanding emergency room system; it is both the largest and the oldest. First Choice Emergency Room is revolutionizing the delivery of emergency medical services for adult and pediatric emergencies, both major and minor. First Choice Emergency Room facilities are innovative, freestanding, and fully equipped emergency rooms with state of the art diagnostic technology (CT Scanners, Ultrasound, Digital X-ray) and on-site labs. All First Choice Emergency Room locations are exclusively staffed with board-certified emergency physicians and emergency trained registered nurses. With locations in Houston, Dallas/Fort Worth, Austin, and Colorado Springs, patients receive high-quality care and have an alternative to today s overburdened hospital system. Inc. Magazine ranked First Choice as one of the fastest growing businesses in the U.S. in 2010, 2011, and The company SUBJECT was named PROPERTY as one of the 2013 Best Companies to Work for in Texas. The company s current growth plans are backed by Sterling Partners, which has invested PRIOR $59 million TO PANDA in theexpress business. EXPANSION First Choice generated $78.2 million in revenue in 2012, up from $37 million in First Choice was established in 2002 by Dr. Jack Novak, and Thomas S. Hall is the company s current CEO. First Choice plans to build more Freestanding Emergency Rooms, as stated in The company has plans to invest over $100 million over the next few years by developing many more facilities. As stated in a Dallas Morning News article in March 2013, CEO Tom Hall stated that First Choice plans to add 6 to 8 new DFW facilities in the next 12 to 18 months. 3

4 Site plan 4

5 Aerial photo Texas State Highway 121 (102,950 Cars / Day) Colleyville Heritage High School (2,261 Students) Glade Road (29,133 Cars / Day) 5

6 PRoPerty PHOTO 6

7 Property Photo 7

8 Location overview IMMEDIATE TRADE AREA First Choice Emergency Room sits on the frontage road of Texas State Highway 121 (102,950 Cars / Day) just north of Glade Road (29,133 Cars / Day). The subject property is directly accessible off the frontage road via the southbound Glade Road exit on Texas State Highway 121 (121). 121 is a major arterial road that connects a vast majority of the Dallas-Fort Worth Metroplex, while Glade Road is a major east-west thoroughfare that provides access throughout the majority of Colleyville.. Numerous national credit tenants have taken advantage of this convenience and accessibility. The subject property, north of the Glade Road intersection with 121, is surrounded by Albertson s, Subway, GNC, Chase Bank, Bank of America, BBVA Compass, Valero, Rio Mambo and Mac s Seafood and Steakhouse. Directly to the south of the site, on the adjacent side of Glade Road, is Super Target, 7-Eleven, Chick-fil-a, Panda Express, Mattress Firm, Game Stop, Sprint, Which Which Superior Sandwiches, and Raising Canes. Directly to the southeast of the subject property is a large shopping center containing retailers such as Lowe s, Starbucks, Ross, Marshalls, Bed Bath & Beyond, Famous Footwear, Staples, Petsmart, Party City, Dollar Tree, LA Fitness, Chili s, Schlotsky s, Baskin Robins, IHOP, and many more. Colleyville Heritage High School (2,261 students),.4 miles north of the subject property, provides a constant source of traffic t the immediate trade area COLLEYVILLE / TARRANT COUNTY, TX Colleyville is a city within the Dallas-Fort Worth Metroplex located roughly 12 miles west of the Dallas-Fort Worth International Airport, and 15 miles northeast of downtown Fort Worth. Today, Colleyville is one of many contiguous mid-cities that sprawl between Dallas and Fort Worth. Just 13.1 square miles, this suburb prides itself on its white-collar background, encouraging continued growth in retail and small business to serve its professional population. The population per the 2010 US Census was 22,807. Colleyville is located in Tarrant County, which contains Fort Worth (the county seat) and Arlington. As of the 2010 Census, Tarrant County s population was 1,809,034. Tarrant county is the 16th most populous county in the United States, and the third most populous in Texas. Tarrant County is surrounded by the Bend Arch-Fort Worth Basin area of the Barnett Shale Formation, which is the largest producible onshore natural gas field in the United States. The gasrich shale field is estimated to contain 30 x 1012 cubic feet (850 cubic kilometers) of natural gas resources. While the formation has been recognized since the late 1800,s profitable field production of the resources it contains has only been possible since significant improvements were made in hydraulic fracturing technology as well as horizontal drilling in the early 2000s. Gas production has since brought a significant population and economic boom to the area, and many of the county s largest employers are involved in the oil and gas business. DALLAS-FORT WORTH ARLINGTON MSA The Dallas Fort Worth Arlington Metropolitan Statistical Area encompasses 12 counties within the U.S. state of Texas. It is the economic and cultural hub of the region commonly called North Texas or North Central Texas and is the largest land-locked metropolitan area in the United States. The 2010 U.S. Census has the Dallas-Fort Worth Metroplex at 6,371,773. 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 one million since the last census was administered in The Dallas Fort Worth Arlington MSA is, by population, the largest metropolitan area in Texas, the largest in the South, the fourth-largest in the United States, and the tenth largest in the Americas. The metropolitan area has the sixth largest gross metropolitan product (GMP) in the United States, and approximately tenth largest by GMP in the world. Dallas and its suburbs have one of the highest concentrations of corporate headquarters in the United States. As such, one of the largest industries in the Metroplex is conducting business. 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 such as Texas Instruments, HP Enterprises Services, Dell Services, i2, AT&T, Ericsson, CA and Verizon in and around Dallas. On the other end of the business spectrum, and on the other side of the Metroplex, the Texas farming and ranching industry is based in Fort Worth. 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. 8

9 IPO PRESS RELEASE First Choice Emergency Room has tapped Goldman Sachs Group Inc and Deutsche Bank AG to prepare an initial public offering that could come in the second quarter of this year, people familiar with the matter said on Friday. First Choice, the largest freestanding emergency room network in Texas and backed by private equity firm Sterling Partners, is the latest in a string of private equity-owned healthcare services companies looking to go public this year. Representatives for First Choice, Sterling Partners and Goldman Sachs did not immediately respond to requests for comment. Deutsche Bank declined to comment. First Choice, founded in 2002 and headquartered in Lewisville, Texas, had around $100 million of revenues in It offers emergency medical services for adult and pediatric patients, and has locations in Houston, Dallas/Fort Worth, Austin and Colorado Springs. The company, which competes against traditional hospital emergency rooms, says its facilities are equipped to serve both major and minor emergency needs, and its business model helps cut down on patient wait times. Oran, Olivia, and Soyoung Kim. "First Choice Emergency Hires Goldman, Deutsche for IPO -sources." Reuters. Thomson Reuters, 09 Apr Web. 17 Apr

10 Location map 10

11 Location map 11

12 Demographics Demographic snapshot Radius 1 Mile 3 Mile 5 Mile Population: 2017 Projection 12,423 87, , Estimate 11,598 82, , Census 11,382 80, ,007 Growth % 6.80% 6.90% Growth % 1.80% 1.80% Households: 2017 Projection 4,782 36,009 78, Estimate 4,476 33,940 74, Census 4,355 33,140 72,447 Growth % 6.10% 6.20% Growth % 2.40% 2.40% Owner Occupied 3,152 19,528 43,857 Renter Occupied 1,324 14,411 30, Avg Household Income $113,036 $94,438 $91, Med Household Income $98,262 $73,819 $69, Per Capita Income $43,725 $39,039 $37, Households by Household Inc: Income Less than $15, ,725 4,416 Income $15,000 - $24, ,876 5,101 Income $25,000 - $34, ,031 6,836 Income $35,000 - $49, ,169 9,531 Income $50,000 - $74, ,381 13,218 Income $75,000 - $99, ,658 9,555 Income $100,000 - $149,999 1,433 7,014 14,594 DOWNTOWN DALLAS, TX Income $150,000 - $199, ,672 5,788 Income $200, ,412 5,166 DFW INTERNATIONAL AIRPORT 12

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