Millenium Shopping Centre
Lewisville, Texas
Building Overview
Executive summary:
- Address/Location 721 Hebron Parkway Lewisville TX 75067
- City: Lewisville
- Tenants: Starbucks, The Cash Store, Bonsai, Hebron Donuts, Styles Of India, Nail Luxury, Vanak Café, Sally's Beauty Supply, Millennium Dry Cleaners
- Size: 16582 SF
- Occupancy: 100%
- IRR: 16%
The Offering
Avatar Investments has been exclusively retained to present the opportunity to acquire Millenium Shopping Centre (“The Property”), a _16,582_ SF solidified by investment-grade tenants with commercial leases. The property is located at the intersection of I-35E and Sam
Rayburn.
Lewisville, Texas, is a dynamic suburban community in the thriving North Texas region. Home to approximately 127,008 residents. Lewisville is a significant regional employer used by major corporations for both administrative headquarters and warehousing. With its location just
minutes from DFW International Airport, and straddling two major highways, Lewisville is perfectly positioned for easy access to the rest of North Texas and the world.
Major tenants include investment grade tenants like Starbucks, Masi Sushi, The Cash Store and Millenium dry cleaners with at least 5-7 years of terms left and very high potential for renewal
due to location. Refer to complete list in “Shopping_Complex_rent_roll” document.
The acquisition of Millennium shopping Centre offers investors a strong and stable passive income stream with the ability to stretch the yield via incremental rental increases. The location also has an advantage of high growth in property value.
Investment Highlights
Financial plan & analysis:
The “shopping_complex_rent_roll“ document contains the rent roll information regarding the tenants, information regarding lease expiry/renewal conditions and finally rental projections for the tenants. PART TWO
The “shopping_complex” document contains three tabs:
1.The first tab “Assumptions” contains the potential purchase price, seller finance conditions including the down payment and interest rates. In addition, it also has the annual rental income, assumed occupancy, and assumed property maintenance/repairs. 2. The second tab “Property” contains return on investment (CoC) viz ~7% yearly on property level not including property appreciation and the associated project profitability of 37.27% over the invested amount in 5 years. 3. The third tab “Returns” has information on investment unit size, type/priority and their respective returns. Also mentioned are the project profitability with Capital appreciation of 62.27% over 5 years. o $100,000 is the investment unit. o Investors are classified into three categories Investor A, Investor B and Managers; risk being the lowest for Investor A. o The returns are categorized into annual returns, End of project accrued returns and End of project pool share returns. Other items to consider: • Maintenance and repair expenses - • Landlord expense • Property tax • Mortgage payment • Property improvement plans
FAQ
Shopping complex - Who is the owner?
Contact us
Depreciation tax benefits?
No, its a rental property, unless we provide a depreciable asset. Advisable to check with your Tax consultant.
How many investors do we already have?
Presently, the opportunity will be split 12 investment units of min $100K each. An investor can own multiple units.
Who pays for the insurance, maintainance, etc?
The property is covered by a Full NNN(Triple net) lease which means all the expenses are paid by the respective tenants over the base rent.
How is the property being paid for?
It is being seller financed with a 20% down paid by the investors.
Assessor's parcel number (APN). It may be called differently in Texas.
What Are Other Terms for APN Number?
There are several other terms used for APN. They have exactly the same meaning as Assessor’s Parcel Number (APN).
These alternative terms that are commonly used in the real estate industry include:
Property Identification (PID)
Property Identification Number (PIN)
Assessor’s Identification Number (AIN)
Property Account Number
Sidwell Number
Tax Account Number
Operating statement (profit & loss statement) for years 2020, 2021 and year-to-date 2022.
Will be provided during due diligence
Lease abstracts (summaries) if they have.
After contract during due diligence, all the lease documents will be provided.
Millineum Dry Cleaners is so big (4000 sf). Do they do the cleaning on site?
Yes
Who manages the common area?
Management and owners
Typically these centers will have Covenants, Conditions and Restrictions (CC&R). Confirm.
There are no restrictions it can be any retail
What is the appraised value of the strip mall? How does this price compare to the 5.8 M sale price ?
The appraised value of the striped mall can be assessed with an appraiser on hire.
What are the exit conditions in case of an eventuality - how can I sell my share of the investment?
It’s a private investment, you cannot unless you have a private replacement or some else agrees to buy you out
How many Managers will be there, and will they be compensated based on a percentage or $ amount during the 5-year operational period?
Another class of investor, can be multiple.
Will the partnership be each investor individual LLC under the master LLC, and the proceeds will be a pass-through , and no tax will be withheld by the master LLC ?
Depends on the final structure and individual person, Master LLC will be a pass through
