OFFERING MEMORANDUM Absolute Triple Net (NNN) Ground Lease Investment Opportunity 1241 FM 148 | Terrell, TX 75160 - Sands Investment Group
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OFFERING MEMORANDUM
Absolute Triple Net (NNN) Ground Lease Investment Opportunity
1241 FM 148 | Terrell, TX 75160
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03
INVESTMENT SUMMARY
• Investment Summary
• Investment Highlights
05
AREA OVERVIEW
• Location & Site Maps
• Retail Maps
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MARKET OVERVIEW Exclusively Marketed By: Sands Investment Group
• Crossroads At Terrell
• Terrell Market Center
• Terrell, TX Max Freedman
Lic. # 644481
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TENANT OVERVIEW
• Taco Cabana
512.766.2711 | DIRECT
max@SIGnnn.com
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LEASE ABSTRACT
• Lease Summary © 2018 Sands Investment Group (SIG). The information contained in this ‘Offering Memorandum,’ has been obtained from sources believed to be reliable. Sands Investment
Group does not doubt its accuracy, however, Sands Investment Group makes no guarantee, representation or warranty about the accuracy contained herein. It is the responsibility
• Rent Roll of each individual to conduct thorough due diligence on any and all information that is passed on about the property to determine it’s accuracy and completeness. Any and all
projections, market assumptions and cash flow analysis are used to help determine a potential overview on the property, however there is no guarantee or assurance these
projections, market assumptions and cash flow analysis are subject to change with property and market conditions. Sands Investment Group encourages all potential interested
In Cooperation with Sands Investment Group Austin, LLC - Lic # 9004706 buyers to seek advice from your tax, financial and legal advisors before making any real estate purchase and transaction.
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INVESTMENT SUMMARY
OFFERING SUMMARY
PRICE $2,073,684
CAP 4.75%
NOI $98,500
RENT PER SF $42.75
YEARS REMAINING 20 Years
LEASE GUARANTY Taco Cabana, Inc
PROPERTY SUMMARY
ADDRESS 1241 FM 148
Terrell, TX 75160
COUNTY Kaufman
BUILDING AREA 2,304 SF (Not Including Patio)
LAND AREA 0.98 Acres
BUILT New Construction 2018
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INVESTMENT HIGHLIGHTS
INVESTMENT SUMMARY
• New Construction with Completion by April 1, 2018
• 20 Year Absolute Triple Net (NNN) Lease
• Corporate Taco Cabana Ground Lease
• Part of the Terrell Market Center which Includes Other Tenants such as
Whataburger, Dairy Queen, Starbucks, Discount Tire, Chipotle, Panda
Express, Chick-fil-A, Goody Goody and a 62,000 SF Buc-ee’s Travel
Center
• Baylor Scott & White Health Owns 52 of the 89 Acres that Make Up
Terrell Market Center and is Designed to be a Regional Medical
Concentration that will Feature a New Full-Service, 100-Bed Expandable
Investment
to 400-Bed Hospital. Baylor Medical Terrell will be the Largest Regional
Medical Facility Serving Kaufman County and the East Texas Region West
of Tyler
Summary
• Across FM 148, the Crossroads at Terrell Project, is a 255-Acre, 600,000
SF Major Power Retail Center that is Currently Under Construction for
Hobby Lobby, Petco, Ross, Film Alley Theater, Marshall’s, Ulta, Burkes
Outlet and Rack Room. Crossroads at Terrell will be Developed in Phases
and Includes Mixed-Use Office, Retail, Hotel, Service and Apartments
(See Page 9)
• 30 Minutes East Of Downtown Dallas
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LOCATION MAP
31 Miles / 30 Minute Drive
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SITE PLAN7
SITE PLAN: TERRELL MARKET CENTER
=RETAIL MAP
The Crossroads at Terrell
Terrell Market Center
8AREA OVERVIEW: CROSSROADS AT TERRELL The Crossroads at Terrell / Terrell Market Center
• Site Sits at the Convergence of US 80 (Via Spur 557) & I-20. Highest Traffic Count
Along I-20 Between DFW Metroplex and Shreveport, LA with a Combined VPD of
Over 70,000
• Dynamic Regional Trade Area that Services All of Kaufman & Van Zandt Counties
will make this Development Primary Retail and Commercial Hub For the Region.
Trade Area Population Exceeds 200,000
• Closest Retail Concentration to the East Is Tyler, TX which is 70 Miles Away
• Draws from Forney Market to the West
• Buc-ee’s Travel Stop at Intersection Drives 6,500+ Vehicles Per Day and Does More
than $35 Million in Sales (Not Including Gas)
• Exponential Residential Growth to Continue in Kaufman County due to Municipal
Utility Districts (MUDS)
• 275,000 SF Phase 1 Development is Under Construction. Tenants Include Film Alley,
Hobby Lobby, Ross, Famous Footwear, Burkes Outlet, Ulta, Marshall’s and More
*PROJECTED TRAFFIC COUNTS
• Adjacent to Future Baylor Health Care Center with 50+ Acre Campus
• Double Diamond Interchange Allows for Convenient Access from All Directions
• 255-Acre Tract Size Provided Potential for 1,000,000+ SF Power Center, Along with
Mixed Uses, Including Restaurants, Hotels, Office, Service Uses, and Multi-Family
Subject Property Demographics
3 Mile 5 Mile 7 Mile
Population 9,648 25,961 41,763
Average Household Income $49,462 $84,636 $101,290
2018 Traffic Counts
Interstate 20 45,000 VPD
Texas State Hwy Spur 557 25,000 VPD
9AREA OVERVIEW
TERRELL, TX
ABOUT THE CITY
Terrell is a city in Kaufman County, Texas with a population of 17,329 in 2016. Terrell is part of the Dallas- Fort
Worth Metroplex, which encompasses 13 counties and is the economic and cultural hub of the region commonly
known as North Texas. According to the 2016 US Census, the population is 7,233,333 making it the largest
metropolitan area in Texas and the 4th largest in the country. In 2016, the metropolitan economy
surpassed Houston, Texas to become the fourth largest in the U.S with a 2016 real GDP just under $512 billion. As
such, the metropolitan area's economy is ranked 10th largest in the world. Terrell is located about 32 miles east of
Dallas.
DALLAS, TX
ECONOMY BAYLOR SCOTT & WHITE HEALTH
Terrell is home to four 500 Fortune Company divisions. Three business tenants, Madix, Old Castle Building
Envelope and Walmart Distribution Center have announced expansion plans totaling $44,400,000 that will add
more than 250 new jobs. Steel Way International recently relocated to Terrell, TX with a $3 million investment
creating 30 new jobs. Centralized between two major highway and access to a workforce of 400,000 makes
Terrell a prime address for business. Their incentive program is considered one of the most aggressive in the
state of Texas. Terrell has received the “Prestigious Community Economic Excellence Award” five times and the
“Workforce Excellence Award” four times. Baylor Scott & White Health owns 52-acres, which is designed to be
the regional medical concentration that will feature a new full-service, 100-bed expandable to 400-bed
hospital. Baylor Medical Terrell will be the largest regional medical facility serving Kaufman County and the East
Texas region west of Tyler.
CULTURE & CONTEMPORARY LIFE
The City of Terrell, in partnership with the No. 1 British Flying Training School Museum, host an annual World War
II veterans reunion and air event on the first Saturday of October. This event draws attendees from all over the
world. It presents numerous attractions such as vintage aircraft and military vehicles, skydiving, flight simulators,
lectures, films, and demonstrations, and activities for every member of the family. Heritage Jubilee, held in the third
weekend in April at Ben Gill Park, is a family celebration with a BBQ cook-off, museum tours, arts and crafts
exhibition, carnival, live music, a quilt show, an auto show, and other attractions.
DOWNTOWN TERRELL
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11TENANT OVERVIEW
Founded in San Antonio, Texas in 1978, Taco Cabana specializes in
Mexican-inspired food made fresh by hand – tacos, quesadillas, flautas,
enchiladas, rice, beans, and a selection of made-from-scratch salsas offered
on our complimentary salsa bar. Flour tortillas are pressed and grilled from
fresh dough balls in view of the guests while fajitas are grilled over an open
flame. Taco Cabana offers a selection of beer and tequila margaritas, patio
COMPANY PROFILE: dining, and a convenient drive-thru.
PARENT COMPANY Fiesta Restaurant Group
April 2, 2017, there are about 167 company-owned Taco Cabana
SALES VOLUME $687.4 Million restaurants, and 7 franchised Taco Cabana restaurants in the U.S.
NET WORTH $522.28 Million
HEADQUARTERS Dallas, TX Fiesta Restaurant Group, Inc. (NASDAQ: FRGI) owns, operates and
www.frgi.com
franchises the Pollo Tropical and Taco Cabana restaurant brands. As of
WEBSITE
October 2, 2016, in addition to the 171 Taco Cabana restaurants, it had
181 company-owned Pollo Tropical restaurants and 34 franchised Pollo
Tropical restaurants in the U.S., Puerto Rico, the Bahamas, Guatemala,
Industry Leading Average Unit Volumes Honduras, Panama, Trinidad & Tobago, and Venezuela.
FY 2015, Average Annual Sales The company is headquartered in San Antonio, Texas. The brands
at Company-owned
Restaurants specialize in the operation of fast-casual, ethnic restaurants that offer
distinct flavors with broad appeal at a compelling value. Both brands
feature made-from-scratch cooking, fresh salsa bars, drive-thru service and
catering. As of January 12, 2018 the company has a net worth of $522.28
million.
COMPANY TYPE HEADQUARTERS # OF LOCATIONS LEASE GUARANTOR FOUNDED WEBSITE
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11 NASDAQ: FEGI San Antonio, TX 174+ Taco Cabana, Inc 1978 tacocabana.comRepresentative Image
LEASE ABSTRACT
LEASE SUMMARY
TENANT Texas Taco Cabana, L.P
A Building of Approximately
PREMISES
2,304 SF
LEASE COMMENCEMENT April 1, 2018
LEASE EXPIRATION March 31, 2038
LEASE TERM REMAINING 20 Years
RENEWAL OPTIONS 5 x 5 Years
RENT INCREASES 10% Every 5 Years
Absolute Triple Net (NNN)
LEASE TYPE
Ground Lease
USE Restaurant
PROPERTY TAXES Tenant’s Responsibility
INSURANCE Tenant’s Responsibility
COMMON AREA Tenant’s Responsibility
ROOF & STRUCTURE Tenant’s Responsibility
REPAIRS & MAINTENANCE Tenant’s Responsibility
HVAC Tenant’s Responsibility
UTILITIES Tenant’s Responsibility
RIGHT OF FIRST REFUSAL Yes
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12 Actual Property ImageRepresentative Image
LEASE ABSTRACT
RENT ROLL
TENANT SQUARE % OF MONTHLY RENT / INCREASE RENTAL RENT LEASE
OPTIONS
NAME FOOTAGE TOTAL BASE RENT SF DATES INCREASE COMMENCES END
Texas Taco Cabana, L.P 2,304 SF 100% $8,208.33 $3.56 Every 5 Years 10% 04/01/2018 03/31/2038 5 x 5 Years
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13CONFIDENTIALLY AGREEMENT
The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed
only by the party receiving it from Sands Investment Group and should not be made available to any other person or entity without the
written consent of Sands Investment Group.
This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish
only a preliminary level of interest in the subject property.
The information contained herein is not a substitute for a thorough due diligence investigation, and makes no warranty or representation,
with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and
square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the
compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business
prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property.
The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, Sands
Investment Group has not verified, and will not verify, any of the information contained herein, nor has Sands Investment Group conducted
any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness
of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.
By receipt of this Memorandum, you agree that this Memorandum and its contents
are of confidential nature, that you will hold and treat it in the strictest confidence and
that you will not disclose its contents in any manner detrimental to the interest of the
Owner. You also agree that by accepting this Memorandum you agree to release
Sands Investment Group and hold it harmless from any kind of claim, cost, expense,
or liability arising out of your investigation and/or purchase of this property.
14INFORMATION ABOUT BROKERAGE SERVICES
B efore working with a real estate broker, you should know that the duties of a
Broker depend on whom the broker represents. If you are a prospective seller
or landlord (owner) or a prospective buyer or tenant (buyer), you should know
The broker is required to treat each party honestly and fairly and to comply
with The Texas Real Estate License Act. A broker who acts as an
intermediary in a transaction:
that the broker who lists the property for sale or lease is the owner's agent. A broker (1) Shall treat all parties honestly;
who acts as a subagent represents the owner in cooperation with the listing broker. A (2) May not disclose that the owner will accept a price less than the asking
broker who acts as a buyer's agent represents the buyer. A broker may act as an price unless authorized in writing to do so by the owner;
intermediary between the parties if the parties consent in writing. A broker can assist (3) May not disclose that the buyer will pay a price greater than the price
you in locating a property, preparing a contract or lease, or obtaining financing submitted in a written offer unless authorized in writing to do so by the
without representing you. A broker is obligated by law to treat you honestly. buyer; and
(4) May not disclose any confidential information or any information that a
IF THE BROKER REPRESENTS THE OWNER: party specifically instructs the broker in writing not to disclose unless
The broker becomes the owner's agent by entering into an agreement with the authorized in writing to disclose the information or required to do so by
owner, usually through a written listing agreement, or by agreeing to act as a The Texas Real Estate License act or a court order or if the information
subagent by accepting an offer of sub agency from the listing broker. A subagent materially relates to the condition of the property.
may work in a different real estate office. A listing broker or subagent can assist the
buyer but does not represent the buyer and must place the interests of the owner With the parties' consent, a broker acting as an intermediary between the
first. The buyer should not tell the owner's agent anything the buyer would not want parties may appoint a person who is licensed under The Texas Real Estate
the owner to know because an owner's agent must disclose to the owner any License Act and associated with the broker to communicate with and carry
material information known to the agent. out instructions of one party and another person who is licensed under the
Act and associated with the broker to communicate with and carry out
IF THE BROKER REPRESENTS THE BUYER: instructions of the other party.
The broker becomes the buyer's agent by entering into an agreement to represent
the buyer, usually through a written buyer representation agreement. A buyer's If you choose to have a broker represent you,
agent can assist the owner but does not represent the owner and must place the you should enter into a written agreement with the broker that clearly
interests of the buyer first. The owner should not tell a buyer's agent anything the establishes the broker's obligations and your obligations. The agreement
owner would not want the buyer to know because a buyer's agent must disclose to should state how and by whom the broker will be paid. You have the right
the buyer any material information known to the agent. to choose the type of representation, if any, you wish to receive. Your
payment of a fee to a broker does not necessarily establish that the broker
IF THE BROKER ACTS AS AN INTERMEDIARY: represents you. If you have any questions regarding the duties and
A broker may act as an intermediary between the parties if the broker complies with responsibilities of the broker, you should resolve those questions before
the Texas Real Estate License Act. The broker must obtain the written consent of proceeding.
each party to the transaction to act as an intermediary. The written consent must
state who will pay the broker and, in conspicuous bold or underlined print, set forth
the broker's obligations as an intermediary.Exclusively Marketed By:
Max Freedman
Lic. # 644481
512.766.2711 | DIRECT
max@SIGnnn.com
Sands Investment Group
2101 S IH 35, Suite 402
Austin, TX 78741
844.4.SIG.NNN
www.SIGnnn.com
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