INVESTMENT OPPORTUNITY - OFFERING MEMORANDUM - Weitzman
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INVESTMENT OPPORTUNITY OFFERING
MEMORANDUM
±24.8 ACRE INVESTMENT OPPORTINUTY IN ROCKWALL, TEXAS
±24.8 ACRE
INVESTMENT
OPPORTUNITY
-2-
±24.8 ACRE
INVESTMENT
OPPORTUNITY
TABLE OF CONTENTS
EXECUTIVE SUMMARY 4
Introduction | Investment Highlights 5
Opportunity Overview | Property Details 6
PROPERTY OVERVIEW 7
Property Details 8
Location Map 9
Market Aerial 10
Property Aerial 11
Survey 12
Tenant Summaries 13
MARKET OVERVIEW 14
Dallas-Fort Worth Overview 15
Rockwall | Heath | McLendon-Chisholm Overview 16-17
Residential Growth Aerial 18
Key Demographics 19
Market Demographics 20
Growth | Income | Home Values Maps 21-24
FINANCIAL ANALYSIS 25
Rent Roll | Expenses | NOI 26
Pricing 27
DISCLAIMER | LISTING CONTACT 28
-3-
EXECUTIVE SUMMARY
±24.8 ACRE
INTRODUCTION INVESTMENT
OPPORTUNITY
EXECUTIVE SUMMARY
Weitzman has been exclusively retained to offer the opportunity to acquire 5757
State Highway 205, Rockwall, Texas (the “Property”), a ±24.8 acre multi-use
entertainment complex in Rockwall, Texas with a 47,500 SF building, 16 tennis
courts (12 hard courts, 2 clay courts & 2 indoor courts), tennis clubhouse with
111 members, resort swimming pool, clubhouse & fitness center and Urban Air
Trampoline Park. The Property consists of two tenants: Urban Air Trampoline Park
and the Oasis Tennis Club. The Property is 100% leased, but offers significant
upside in the undeveloped land and the rapid growth in the Oasis Tennis Club’s
memberships. The Property is being offered at a 6.00% cap rate on in-place NOI
and a 7.6% pro-forma cap rate with 200 total Oasis Tennis Club members.
INVESTMENT HIGHLIGHTS
• 6.00% Cap Rate Entertainment Complex on in-place NOI
• Located in Rockwall, Texas and the rapidly growing Heath and McLendon-
Chisholm area
• Land basis at $5.05 PSF; Building basis at $115.79 PSF
• Value-add potential in developing or selling the ±6 acres of land in addition to
the maximum potential income from the Oasis Tennis Club memberships (up to
another $87,360 of NOI)
• 7.6% Pro-Forma Cap Rate based on the additional income from the Oasis
Tennis Club memberships
• Great opportunity for a user to convert sand volleyball courts into a stadium
soccer or football field. In addition the 22,875 SF indoor tennis courts could be
made available as well
• Positioned on SH 205 with +12,000 VPD, one of the primary thoroughfares in
Rockwall |Heath | McLendon-Chisholm and with 64,058 people and a 5 year
projected growth rate of 17.5% within a 6 mile radius
• National tenant in Urban Air Trampoline Park
-5-
±24.8 ACRE
INTRODUCTION INVESTMENT
OPPORTUNITY
OVERVIEW | OPPORTUNITY
5757 State Highway 205 is located in Rockwall, Texas just south of IH 30 on State Highway 205. The Property is centrally located between three affluent
and growing cities; Rockwall, Heath and McLendon-Chisholm. In addition, residents drive from the fast growing cities of Rowlett, Fate and Royce City just
minutes away to the northwest and northeast. With average household incomes exceeding $109,000, average home values over $254,000 and household
growth of 112% (from 2000-2016), the need for a family oriented entertainment complex will continue to grow. With no direct competition, this unique
Property offers the opportunity to own a childhood dream entertainment complex with future value add potential.
PROPERTY DETAILS
Address: 5757 State Highway 205 GLA: 47,500 SF
Rockwall, Texas 75032 Land: ±24.8 Acres | ±1,080,288 SF
Property Type: Multi-Use Entertainment Center Stories: 1
Submarket: Rockwall | Heath
Parking: 189 Spaces (including 4 Handicap Spaces)
Year of Construction: 2012
Zoning: PD - Planned Development
-6-
PROPERTY OVERVIEW
±24.8 ACRE
PROPERTY OVERVIEW INVESTMENT
OPPORTUNITY
PROPERTY DETAILS
SITE DESCRIPTION CONSTRUCTION DETAIL
Location: 5757 State Highway 205, Rockwall, Texas 75032 Exterior Walls: Metal/Brick
Closest Major Floor: Reinforced concrete
Intersection: State Highway 205 & FM 549
Roof: Gabled
Total GLA: ±47,500 SF + Outdoor Clubhouse
Windows: Thermal windows in aluminum frames
Acreage: ±24.8 Acres
Exterior Doors: Glass and metal
Drainage: 1 acre retention pond
Interior Doors: Hollow-core wood
Flood Zone: Zone X outside the 500 year floodplain
Floor Covering: Vinyl tile and sealed concrete
Zoning: PD - Planned Development
Wall Covering: Exposed
Frontage: ±856 feet along SH 205
Ceiling Finish: Exposed
Ingress/Egress; 1 point along SH 205 Lighting: Fluorescent and Incandescent
Parking Spaces: 189 (including 4 handicap parking spaces) Restrooms: 1 ADA Compliant Restroom
Parking Ratio: 3.98/1,000
Traffic Counts ±11,900 VPD State Highway 205 PROPERTY HISTORY
Signage: Gated stone entrance with signage on each side Built: 2012
Lighting: Standard commercial flourescent fixtures
Topography: Generally level and at street grade
Number of Buildings: 1 + Clubhouse
Configuration: Refer to site plan
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±24.8 ACRE
LOCATION MAP INVESTMENT
OPPORTUNITY
Lake Ray Hubbard
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±24.8 ACRE
MARKET AERIAL INVESTMENT
OPPORTUNITY
Ridge Rd
Ho
riz
on
Rd
610 STUDENTS
MAURICE CAIN
MIDDLE SCHOOL
941 STUDENTS
- 10 -±24.8 ACRE
PROPERTY AERIAL INVESTMENT
OPPORTUNITY
FUTURE
DEVELOPMENT
OPPORTUNITY
±3 ACRES
FUTURE
DEVELOPMENT
OPPORTUNITY
±3 ACRES
- 11 -±24.8 ACRE
SURVEY INVESTMENT
OPPORTUNITY
- 12 -±24.8 ACRE
PROPERTY OVERVIEW INVESTMENT
OPPORTUNITY
TENANT SUMMARIES
Oasis Beach & Tennis Club was created with tennis players and tennis Urban Air Trampoline Park are the nation’s premier indoor trampoline and
families in mind. The goal is bringing the community a first class tennis adventure parks. Urban Air Trampoline Park offers a variety of trampoline
facility, while including a full range of amenities to make the club a activities on its wall-to-wall trampolines, Foam Pit, trampoline Dodgeball,
comfortable place for the entire family. trampoline Runway, Slam Dunk Track and trampoline Bowl.
12 Lighted Outdoor Tennis Courts Urban Air Trampoline and Adventure Parks has been honored by
2 Indoor Climate Controlled Tennis Courts Entrepreneur TV as Top 500 Entrepreneur Franchise in America. Noted as
2 Lighted Red Clay Courts one of the fastest growing family entertainment centers in the world.
Accolades include:
Best Gym For Kids In America – SHAPE Magazine
Best Jump Place – DFW Child
Best Trampoline Parks – DFW Child
Best Birthday Parties For Kids – About.com
Best Place To Take Energetic Kids – Fort Worth Child
Best Place For Kids Birthday Parties – Star Newspapers
- 13 -MARKET OVERVIEW
±24.8 ACRE
MARKET OVERVIEW INVESTMENT
OPPORTUNITY
DALLAS-FORT WORTH OVERVIEW
The combined Dallas-Fort Worth (DFW) market ranks as Texas’ largest metropolitan area with a population of 7.2 million people. By 2021, that total is
expected to increase to 8.0 million. The DFW metro area reports an average household income of $86,648 and a median household income of $61,314.
The DFW region is a key U.S. financial center, home to the corporate headquarters for Comerica Bank and MoneyGram, as well as major centers for
JPMorgan Chase, Citigroup, Wells Fargo, Bank of America, Capital One and Fidelity Investments. Dallas is also home to one of 12 regional Federal Reserve
Banks.
DFW currently ranks second nationally in terms of job growth, based on 135,400 net new jobs in 2016 for a job growth rate of 4.0 %, according to the U.S.
Bureau of Labor Statistics.
DFW is home to more than 10,000 corporate headquarters, giving the area the largest concentration of corporate headquarters in the United States.
DFW ranks 12th in the world as a commercial property investment market, and was recently named the #2 Real Estate Market in the U.S. surpassing New
York City.
DFW ranks No. 1 in Texas and No. 7 in the U.S. among “tech cities”, according to the Computing Technology Industry Association. The area is also home to
defense contractors Lockheed Martin, Bell Helicopter Textron and Raytheon, as well as the Fortune 500’s No. 2 corporation, ExxonMobil.
DFW is home to more than 40 universities and colleges with a total student enrollment of approximately 346,000.
DFW is home to 80 acute care hospitals and other major medical centers with a total of approximately 20,000 beds. Health care adds $52 billion to the
region’s economy annually and supports more than 600,000 jobs. DFW is home to seven not-for profit medical systems, two national for-profit systems, 28
independent hospitals, one major veterans’ hospital and the corporate headquarters for four national healthcare firms.
BY THE NUMBERS
#
1
IN THE COUNTRY
DFW Region adds
TOP 5
IN PERCENT JOB
GROWTH (3%) 360 NEW RESIDENTS
HOT HOUSING every day
# DALLAS-FORT WORTH TOP 20
2
IN THE COUNTRY
BEST PLACES TO LIVE 2017 MARKET 2017
IN ABSOLUTE JOB Realtor.com 43% 57%
GROWTH US News & World Report
NATURAL NET
INCREASE MIGRATION
US Census, 2015-2016
- 15 -±24.8 ACRE
MARKET OVERVIEW INVESTMENT
OPPORTUNITY
ROCKWALL COUNTY TRI-CITY AREA
RESIDENTIAL GROWTH, AFFLUENT HOUSEHOLDS
Rockwall, an affluent city east of Dallas, is the largest city in Rockwall County. Rockwall County ranks as one of the fastest growing counties in the United States.
To the south and southwest of Rockwall’s border are the growing towns of Heath and McLendon-Chisolm. These three dynamic communities form the nucleus
of the trade area for the multi-use recreational facility which includes Oasis Tennis Club & Urban Air Trampoline Park, located on 25 prime acres.
POPULATION GROWTH: Rockwall, Heath, McLendon-Chisolm
Rockwall ranks as the largest city in Rockwall County. The city currently reports a population of 44,304, more than double the 2000 population of 21,368. Since
2000, the population has increased by 107.3 percent, and since 2010, it has increased by 34.0 percent. Between now and 2021, the population is on track to
further increase by 15.1 percent to a total of 50,975.
Heath currently reports a population of 8,463, notably up from the 2000 population of 4,750. Since 2000, the population has increased by 78.2 percent, and
between now and 2021, the population is on track to further increase by 16.5 percent to a total of 9,856.
McLendon-Chisolm currently reports a population of 1,842, notably up from the 2000 population of 584. Since 2000, the population has increased by 215.4
percent, and between now and 2021, the population is on track to further increase by 25.2 percent to a total of 2,307.
- 16 -±24.8 ACRE
MARKET OVERVIEW INVESTMENT
OPPORTUNITY
ROCKWALL COUNTY TRI-CITY AREA CONT.
HOUSING GROWTH: Rockwall, Heath, McLendon-Chisolm
The trade area surrounding the property features 36 active subdivisions, according to research by leading housing residential survey firm Metrostudy. Currently,
those subdivisions are delivering approximately 1,000 new single-family homes on an annual basis. The subdivisions also project future starts that will total
approximately 11,000, bringing the single-family development total to 28,249.
Rockwall itself currently reports more than 15,000 households, of which nearly 80 percent are owner occupied. The average home value in Rockwall is $222,822.
Heath reports 2,757 households, of which approximately 92 percent are owners occupied. The average home value in Heath is $385,303.
McLendon-Chisolm reports 586 households, of which approximately 93 percent are owner occupied. The average home value in McLendon-Chisolm is $335,869.
The trade area, with a median age in the mid-to-high 30s, which primarily features families, has boosted the appeal of this entertainment complex.
- 17 -±24.8 ACRE
RESIDENTIAL GROWTH INVESTMENT
OPPORTUNITY
AMBROSIA PLACE 30
HEATH GOLF & YACHT CLUB 19 FUTURE HOMES LAKE RAY HUBBARD
$285K - $600K
29 EXISTING HOMES MARINA
966 FUTURE HOMES THE SANCTUARY
$650K - $1.0M
19 EXISTING HOMES
7 FUTURE HOMES THE RENAISSANCE RIDGE ROAD
McCRUMMEN ESTATES HUB 2,200 STUDENTS 35 FUTURE HOMES
$436K - $719K BA R THE VILLAGE OF HEATH
DD MIXED USE DEVELOPMENT
19 EXISTING HOMES RIV LAURENCE DRIVE
41 FUTURE HOMES
E 168 FUTURE HOMES | 32 FUTURE TOWNHOMES
HEATH CROSSING
79 EXISTING HOMES
108 FUTURE HOMES D
R OA
I ZO N
HOR
PROVIDENCE
35 FUTURE HOMES
EQUESTRIAN ESTATES
AT BUFFALO
27 FUTURE HOMES
RIDGE LAKES MAURICE CAIN 610 STUDENTS
$800K
$800k - $4.7M MIDDLE SCHOOL
4 EXISTING HOMES 941 STUDENTS
92 FUTURE HOMES
COBBLESTONE FARMS
$650K - $1.45M
36 EXISTING HOMES
9 FUTURE HOMES
549
SOMERSET PARK
309 FUTURE HOMES
5
20
KENSINGTON PARK
KINGSBRIDGE
$600K - $1.35M
$450K - $587K
66 EXISTING HOMES 31 CURRENT HOMES
32 FUTURE HOMES 42 FUTURE HOMES
- 18 -±24.8 ACRE
KEY DEMOGRAPHICS INVESTMENT
OPPORTUNITY
6
ROCKWALL
M
IL
107.3% Population Growth
E
2000-2016
RA
15.1% Population
2016-2021
Growth
DI
97.8% Household
2000-2016
Growth
6 MI RADIUS
US
$222,822 Average Home Value
Population Growth
Median Household 123.7% 2000-2016
$ $86,327 Income
$103,851 Average
Income
Household 18.6% Population
2016-2021
Growth
112.1% Household
2000-2016
Growth
$254,200 Average Home Value
$86,265 Median Household
$ Income
$109,460 Income Household
Average
MCLENDON-
CHISHOLM
Population Growth
HEATH 215.4% 2000-2016
Population Growth 25.2% Population
2016-2021
Growth
78.2% 2000-2016
Population Growth
16.5% 2016-2021 199.0% Household
2000-2016
Growth
$335,869 Average Home Value
75.5% Household
2000-2016
Growth
$104,901 Median Household
$385,304 Average Home Value
$ Income
$142,792 Average Household
$135,323 Median Household Income
$ Income
$171,159 Average
Income
Household
- 19 -±24.8 ACRE
DEMOGRAPHICS INVESTMENT
OPPORTUNITY
MARKET DEMOGRAPHICS
MCLENDON-
DEMOGRAPHICS ROCKWALL HEATH 6 MILE RADIUS
CHISHOLM
2016 Total Population 44,304 8,463 1,842 64,058
2021 Projected Population 50,975 9,856 2,307 75,970
Population Change 2000-2016 107.3% 78.2% 215.4% 123.7%
Projected Population Growth 2016-2021 15.1% 16.5% 25.2% 18.6%
2016 Total Households 15,002 2,757 586 21,048
2021 Projected Households 17,155 3,191 730 24,724
Household Growth 2000-2016 97.8% 75.5% 199.0% 112.1%
Projected Household Growth 2016-2021 14.4% 15.7% 24.6% 17.5%
Median Household Income $86,327 $135,323 $104,901 $86,265
Average Household Income $103,851 $171,159 $142,792 $109,460
Median Home Value $191,251 $347,619 $290,740 $194,694
Average Home Value $222,822 $385,304 $335,869 $254,200
Total Daytime Population 46,115 6,662 1,249 59,818
Daytime at Home Population (%) 51.8% 75.7% 80.3% 58.1%
- 20 -±24.8 ACRE
HOUSEHOLD GROWTH INVESTMENT
OPPORTUNITY
FM-551
TX-276
SG
o li
ad
St
S John King Blvd
S FM 549
Growth Rate is average annual
year-over-year growth
Ridge Rd
FM
-1
13
9
50
-5
M
EF
Rd
ay
W
TX
Dr
alo
-2
irl
05
uff
Sm
B
Laurence Dr
SS
ta
te
High
wa
y 20
5
48
8 -5
54 FM
-
FM
- 21 -±24.8 ACRE
POPULATION GROWTH INVESTMENT
OPPORTUNITY
FM-551
TX-276
SG
o li
ad
St
S John King Blvd
S FM 549
Growth Rate is average annual
year-over-year growth
Ridge Rd
FM
-1
13
9
50
-5
M
EF
Rd
ay
W
TX
Dr
alo
-2
irl
05
uff
Sm
B
Laurence Dr
SS
ta
te
High
wa
y 20
5
48
-5
FM
48
-5
FM
- 22 -±24.8 ACRE
AVG HOUSEHOLD INCOME INVESTMENT
OPPORTUNITY
FM-551
TX-276
SG
o li
ad
St
S John King Blvd
S FM 549
Ridge Rd
FM
-1
13
9
50
-5
M
EF
Rd
ay
W
TX
Dr
alo
-2
irl
05
uff
Sm
B
Laurence Dr
SS
ta
te
High
wa
y 20
5
48
-5
FM
48
-5
FM
- 23 -±24.8 ACRE
AVG HOME VALUE INVESTMENT
OPPORTUNITY
FM-551
TX-276
SG
o li
ad
St
S John King Blvd
S FM 549
Ridge Rd
FM
-1
13
9
50
-5
M
EF
Rd
ay
W
TX
Dr
alo
-2
irl
05
uff
Sm
B
Laurence Dr
SS
ta
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High
wa
y 20
5
48
-5
FM
48
-5
FM
- 24 -FINANCIAL ANALYSIS
±24.8 ACRE
FINANCIAL ANALYSIS INVESTMENT
OPPORTUNITY
RENT ROLL & EXPENSES
RENT
% OF BASE $/SQ. RENT RENEWAL
TENANT SQ. FT. BASE $ (ANNUALLY) RENT END RENT INCREASE DATE INCREASE RENEWAL RATE
PROPERTY FT. START OPTION
(PSF)
7/1/2022-6/30/2027:
R.I.S.E. 22,875 48.2% $9.44 $216,000.00 5/1/2017 6/30/2022 N/A N/A One (1) 5-year
$20,000.00/mo
11/1/2027-10/31/2032:
$25,410.00/mo
11/1/2032-10/31/2037:
11/1/2022- $27,951.00/mo
URBAN AIR 24,625 51.8% $10.23 $252,000.00 11/1/2017 10/31/2027 11/1/2022 10/31/2027: Four (4) 5-year
$23,100.00/mo 11/1/2037-10/31/2042:
$30,746.10/mo
11/1/2042-10/31/47:
$33,820.71/mo
Maximum amount of income:
$67,200.00 (based on 70
OASIS TENNIS CLUB N/A N/A N/A 5/25/2017 5/24/2019 $144,000.00 with 200 N/A 5/25/2019-5/24/22 N/A
members @$80.00/mo)
members @$80.00/mo
TOTALS 47,500 $9.84 $535,200.00
EXPENSES
Real Estate Taxes $68,000.00
Insurance $20,676.00
Common Area Maintenance $16,680.00
Utilities $7,776.00
Trash $1,800.00
Management Fee (4.0%) $21,408.00
TOTAL EXPENSES $136,340.00
EXPENSE REIMBURSEMENTS
Real Estate Taxes $35,224.00
Insurance $10,710.17
Common Area Maintenance $8,640.24
Utilities $7,776.00
Trash $1,800.00
Management Fee (4.0%) $0.00
TOTAL EXPENSE REIMBURSEMENTS $64,150.41
NET OPERATING INCOME $463,010.41
- 26 -±24.8 ACRE
FINANCIAL ANALYSIS INVESTMENT
OPPORTUNITY
PRICING
47,500 SF | BUILDING
PRICE $5,500,000.00 GLA ±24.8 ACRES | LAND
$115.79 PSF TO BUILDING
PRICE/SF AVERAGE RENT PSF $8.32
$5.05 SF TO LAND
CAP RATE 6.00% NOI $337,240.97
- 27 -±24.8 ACRE
DISCLAIMER |LISTING CONTACT INVESTMENT
OPPORTUNITY
This real estate presentation has been prepared for information purposes only, and does not purport to contain all the information necessary to reach a
purchase decision for the property described herein (the “Property”). The information contained herein ( the “Information”) has been carefully compiled,
but not independently verified by the Seller or Weitzman, and there is no representation, warranty or guarantee whatsoever as to its completeness or
accuracy.
Any potential Purchaser shall rely entirely on its own information, judgment and inspection of the Property and its records, and neither the Seller nor
Weitzman assume any liability whatsoever for errors or omissions in the Information or any other data provided in connection with the Property. Each
potential Purchaser and any party related thereto agrees that neither Seller not Weitzman shall have any liability for any reason, whether for negligence or
gross negligence, from the use of the Information by any person in connection with the purchase of or any other investment in the Property by a Purchaser
or any other party related thereto.
Neither the Seller nor Weitzman has any liability whatsoever for any oral or written representations, warranties or agreements relating to the Property
except as expressly set forth by any such party in any contract of sale executed in connection with the Property.
This presentation is subject to changes by the Seller as to price or terms, to prior sale, to withdrawal of the Property from the market, and other events
beyond the control of the Seller and Weitzman.
Weitzman is the trade name of Weitzman Management Corporation, a regional realty corporation.
CONTACT:
Matthew Rosenfeld
Vice President
mrosenfeld@weitzmangroup.com
T 214.720.6676
M 214.755.9797
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